Document:

Amended and Restated Trust Deed dated December 16, 2002

 Exhibit 4.9 
  
 CONFORMED COPY 
  
 Dated 16 December 2002 
  
 SCOTTISH POWER plc 
 SCOTTISH POWER UK plc 
  
 as Issuers 
  
 and 
  
 THE LAW DEBENTURE TRUST CORPORATION p.l.c. 
  
 AMENDED AND RESTATED TRUST DEED 
  
 relating to 
  
 SCOTTISH POWER plc 
 SCOTTISH POWER UK
plc 
 U.S.$7,000,000,000 Debt Issuance Programme 
 Arranged by 
 J.P. Morgan Securities Ltd. 
  
 Linklaters 
  
 Ref: JALB/EXM/ANNN 

 CONTENTS 
  

			
	 1
	  	 Interpretation
	  	1
			
	 2
	  	 Issue of Notes and Covenant to pay
	  	7
			
	 3
	  	 Form of the Notes
	  	8
			
	 4
	  	 Stamp Duties and Taxes
	  	9
			
	 5
	  	 Application of moneys received by the Trustee
	  	9
			
	 6
	  	 Covenants
	  	10
			
	 7
	  	 Remuneration and Indemnification of the Trustee
	  	14
			
	 8
	  	 Provisions supplemental to the Trustee Act 1925 and the Trustee Act 2000
	  	15
			
	 9
	  	 Trustee liable for negligence
	  	18
			
	 10
	  	 Waiver and proof of default
	  	18
			
	 11
	  	 Trustee not precluded from entering into contracts
	  	18
			
	 12
	  	 Modification and Substitution
	  	19
			
	 13
	  	 Appointment, Retirement and Removal of the Trustee
	  	20
			
	 14
	  	 Notes held in Clearing Systems and Couponholders
	  	21
			
	 15
	  	 Currency Indemnity
	  	21
			
	 16
	  	 Communications
	  	22
			
	 17
	  	 Governing Law and Jurisdiction
	  	22
		
	 SCHEDULE 1 Part A Form of Temporary Global Note
	  	23
		
	 SCHEDULE 1 Part B Form of Permanent Global Note
	  	29
		
	 SCHEDULE 1 Part C Form of Global Certificate
	  	38
		
	 SCHEDULE 2 Part A Form of Bearer Note
	  	42
		
	 SCHEDULE 2 Part B Form of Certificate
	  	45
		
	 SCHEDULE 2 Part C Terms and Conditions of the Notes
	  	48
		
	 SCHEDULE 2 Part D Form of Coupon
	  	73

  

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	 SCHEDULE 2 Part E Form of Talon
	  	75
		
	 SCHEDULE 2 Part F Form of Receipt
	  	77
		
	 SCHEDULE 3 Provisions for Meetings of Noteholders
	  	78

  

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 This Amended and Restated Trust Deed is made on 16 December 2002 between: 
  

	(1)	 	SCOTTISH POWER plc and SCOTTISH POWER UK plc (each an “Issuer” and together the “Issuers”) and 

  

	(2)	 	THE LAW DEBENTURE TRUST CORPORATION p.l.c. (the “Trustee”, which expression, where the context so admits, includes any other trustee for the time
being of this Trust Deed). 

  
 Whereas:

  

	(A)	 	The Issuers propose to issue from time to time euro medium term notes in an aggregate principal amount outstanding at any one time not exceeding the Programme Limit in accordance
with the Programme Agreement (the “Programme”) and to be constituted under this Trust Deed. 

  

	(B)	 	The Trustee has agreed to act as trustee of this Trust Deed on the following terms and conditions. 

  

	(C)	 	The parties hereto have agreed to amend and restate the amended and restated trust deed dated 20 December 2001 as it may have been amended from time to time (the “Original
Trust Deed”). This Trust Deed amends and restates the Original Trust Deed. Any Notes issued on or after the date hereof shall be issued pursuant to this Trust Deed. This does not affect any Notes issued prior to the date of this Trust Deed.

  
 This deed witnesses and it is declared as follows:

  

	1	 	Interpretation 

  

	1.1	 	Definitions: 

  
 In these presents unless there is anything in the subject or context inconsistent therewith all words and expressions defined in the Conditions shall have
the same meaning in the rest of this Trust Deed and the following expressions shall have the following meanings: 
  
 “Agency Agreement” means the Amended and Restated Agency Agreement relating to the Programme of even date herewith between the Issuers,
The Law Debenture Trust Corporation p.l.c. as Trustee, Citibank, N.A., London as Agent and the other Agents mentioned in it as it may be amended, supplemental or restated from time to time; 
  
 “Agents” means the Issuing and Paying Agent, the other
Paying Agents, the Calculation Agent, the Registrar, the other Transfer Agents or any of them; 
  
 “Bearer Note” means a Note that is in bearer form, and includes any replacement Bearer Note issued pursuant to the Conditions and any
temporary Global Note or permanent Global Note; 
  
 “Calculation Agent” means any person named as such in the Conditions or any Successor Calculation Agent; 
  
 “Capital and Reserves” shall have the meaning set out in Condition 6(f); 
  
 “Certificate” means a registered certificate representing one or more Registered Notes of the same Series
and, save as provided in the Conditions, comprising the entire holding by a Noteholder of his Registered Notes of that Series and, save in the case of Global Certificates, being substantially in the form set out in Schedule 2; 
  

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 “Clearstream, Luxembourg” means Clearstream Banking, société anonyme;

  
 “Conditions” means in respect of the Notes
of each Series the terms and conditions applicable thereto which shall be substantially in the form set out in Schedule 2 as modified, with respect to any Notes represented by a Global Certificate or a Global Note, by the provisions of such Global
Certificate or Global Note, and which shall incorporate any additional provisions forming part of such terms and conditions set out in the Pricing Supplement(s) relating to the Notes of that Series and shall be endorsed on the Definitive Notes
subject to amendment and completion as referred to in the first paragraph of Schedule 2 Part C and any reference to a particularly numbered Condition shall be construed accordingly; 
  
 “Contractual Currency” means, in relation to any payment obligation of any Note, the currency in which that
payment obligation is expressed and, in relation to Clause 7, pounds sterling or such other currency as may be agreed between the Relevant Issuer and the Trustee from time to time; 
  
 “Coupons” means the bearer coupons relating to interest bearing Bearer Notes or, as the context may
require, a specific number of them and includes any replacement Coupons issued pursuant to the Conditions; 
  
 “Definitive Note” means a Bearer Note in definitive form having, where appropriate, Coupons, Receipt(s) and/or a Talon attached on issue
and, unless the context requires otherwise, means a Certificate (other than a Global Certificate) and includes any replacement Note or Certificate issued pursuant to the Conditions; 
  
 “Euroclear” means Euroclear Bank S.A./N.V. as operator of the Euroclear System; 
  
 “Event of Default” means an event described in Condition 10
that, if so required by that Condition, has been certified by the Trustee to be, in its opinion, materially prejudicial to the interests of the Noteholders; 
  
 “Exchangeable Bearer Note” means a Bearer Note that is exchangeable in accordance with its terms for a Registered Note; 
  
 “Excluded Subsidiary” has the meaning specified in
Condition 6; 
  
 “Extraordinary Resolution” has
the meaning set out in Schedule 3; 
  
 “Global
Certificate” means a Certificate substantially in the form set out in Schedule 1 Part C representing Registered Notes of one or more Tranches of the same Series that are registered in the name of a nominee for Euroclear, Clearstream,
Luxembourg and/or any other clearing system; 
  
 “Global
Note” means a temporary Global Note and/or, as the context may require, a permanent Global Note; 
  
 “holder” in relation to a Note, Receipt, Coupon or Talon, and “Couponholder” and “Noteholder” have the
meanings given to them in the Conditions; 
  
 “Issuing
and Paying Agent” means the person named as such in the Conditions or any Successor Issuing and Paying Agent in each case at its specified office; 
  
 “Notes” means the euro medium term notes to be issued by either of the Issuers pursuant to the Programme Agreement, constituted by this
Trust Deed and for the time being outstanding or, as the context may require, a specific number of them; 
  

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 “outstanding” means, in relation to the Notes, all the Notes issued except (a) those
that have been redeemed in accordance with the Conditions, (b) those in respect of which the date for redemption has occurred and the redemption moneys (including all interest accrued on such Notes to the date for such redemption and any interest
payable after such date) have been duly paid to the Trustee or to the Issuing and Paying Agent as provided in Clause 2 and remain available for payment against presentation and surrender of Notes, Certificates, Receipts and/or Coupons, as the case
may be, (c) those that have become void or in respect of which claims have become prescribed, (d) those that have been purchased and cancelled as provided in the Conditions, (e) those mutilated or defaced Bearer Notes that have been surrendered in
exchange for replacement Bearer Notes, (f) (for the purpose only of determining how many Notes are outstanding and without prejudice to their status for any other purpose) those Bearer Notes alleged to have been lost, stolen or destroyed and in
respect of which replacement Notes have been issued, (g) those Exchangeable Bearer Notes that have been exchanged for Registered Notes, and (h) any temporary Global Note to the extent that it shall have been exchanged for a permanent Global Note and
any Global Note to the extent that it shall have been exchanged for one or more Definitive Notes, in either case pursuant to its provisions provided that for the purposes of (1) ascertaining the right to attend and vote at any meeting of the
Noteholders, (2) the determination of how many Notes are outstanding for the purposes of Conditions 10 and 11 and Schedule 3, (3) the exercise of any discretion, power or authority that the Trustee is required, expressly or impliedly, to exercise in
or by reference to the interests of the Noteholders and (4) the certification (where relevant) by the Trustee as to whether a Potential Event of Default is in its opinion materially prejudicial to the interests of the Noteholders, those Notes that
are beneficially held by or on behalf of the Relevant Issuer or any of its subsidiaries and not yet cancelled shall (unless no longer so held) be deemed not to remain outstanding; 
  
 “Paying Agents” means the persons (including the Issuing and Paying Agent) referred to as such in the
Conditions or any Successor Paying Agents in each case at their respective specified offices; 
  
 “permanent Global Note” means a Global Note representing Bearer Notes of one or more Tranches of the same Series, either on issue or upon exchange of a temporary Global Note, or part of it, and which
shall be substantially in the form set out in Schedule 1 Part B; 
  
 “Potential Event of Default” means an event or circumstance that could with the giving of notice, lapse of time, issue of a certificate and/or fulfilment of any other requirement provided for in Condition 10 become an Event
of Default; 
  
 “Pricing Supplement” means, in
relation to a Tranche, a pricing supplement, supplemental to the offering circular relating to the Programme, issued specifying the relevant issue details of such Tranche, substantially in the form contained in Annex B to the Procedures Memorandum;

  
 “Principal Subsidiary” shall mean, in
relation to Scottish Power plc: 
  

	 	(a)	 	any Relevant Subsidiary; or 

  

	 	(b)	 	any Subsidiary of Scottish Power plc (not being an Excluded Subsidiary or any other Subsidiary of Scottish Power plc 90 per cent. in principal amount of whose indebtedness for
borrowed money is Project Finance Indebtedness): 

  

 3 

	 	(i)	 	whose (a) profits on ordinary activities before tax or (b) net assets represent 20 per cent. or more of the consolidated profits on ordinary activities before tax of the Group or
consolidated net assets of the Group respectively, in each case as calculated by reference to the then latest audited financial statements of such Subsidiary and the then latest audited consolidated financial statements of the Group; provided that
in the case of a Subsidiary acquired after the end of the financial period to which the then latest audited consolidated financial statements of the Group relate, the reference to the then latest audited consolidated financial statements of the
Group for the purposes of the calculation above shall, until consolidated financial statements 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
financial statements as if such Subsidiary had been shown in such financial statements by reference to its then latest relevant audited financial statements, adjusted as deemed appropriate by Scottish Power plc; or 

  

	 	(ii)	 	to which is transferred all or substantially all of the business, undertaking and assets of a Subsidiary of Scottish Power plc which immediately prior to such transfer is a
Principal Subsidiary, whereupon the transferor Subsidiary shall immediately cease to be a Principal Subsidiary and the transferee Subsidiary shall cease to be a Principal Subsidiary under this sub-paragraph (ii) upon publication of its next audited
financial statements but so that such transferor Subsidiary or such transferee Subsidiary may be a Principal Subsidiary of Scottish Power plc on or at any time after the date on which such audited financial statements have been published by virtue
of the provisions of sub-paragraph (i) above or before, on or at any time after such date by virtue of the provisions of this sub-paragraph (ii). 

  

A report by the Directors of Scottish Power plc that, in their opinion, a Subsidiary of Scottish Power plc is or is not or was or was not at any
particular time or throughout any specified period a Principal Subsidiary of Scottish Power plc shall, in the absence of manifest error, be conclusive and binding on the Trustee and the Noteholders; and 
  
 in relation to Scottish Power UK plc, “Principal
Subsidiary” shall mean any one of: 
  

	 	(a)	 	SP Distribution plc (SC189125); 

  

	 	(b)	 	SP Transmission plc (SC189126); or 

  

	 	(c)	 	SP Manweb plc (2366937); 

  
 “Procedures Memorandum” means the memorandum (as may be amended from time to time) detailing the administrative procedures and guidelines
relating to the settlement of issues of Notes (other than Syndicated Issues); 
  
 “Programme Agreement” means the Amended and Restated Programme Agreement relating to the Programme dated the date hereof between the Issuers, J.P. Morgan Securities Ltd. and the other dealers named in
it as it may be amended, supplemented or restated from time to time; 
  
 “Programme Limit” means the maximum aggregate principal amount of Notes that may be issued and outstanding at any time under the Programme, as such limit may be increased pursuant to the Programme Agreement; 
  

 4 

 “Receipts” means the receipts for the payment of instalments of principal in respect of
Bearer Notes of which the principal is repayable in instalments or, as the context may require, a specific number of them and includes any replacement Receipts issued pursuant to the Conditions; 
  
 “Redemption Amount” has the meaning given to it in the
Conditions; 
  
 “Register” means the register
maintained by the Registrar; 
  
 “Registered
Note” means a Note in registered form; 
  
 “Registrar” means the person named as such in the Conditions or any Successor Registrar in each case at its specified office; 
  
 “Relevant Issuer” means, in relation to any Tranche, the Issuer which has concluded, or is negotiating, an agreement with the Relevant
Dealer(s) to issue, or which has issued, the Notes of that Tranche; 
  
 “Relevant Subsidiary” has the meaning specified in Condition 6; 
  
 “Restructuring Event” has the meaning specified in Condition 6; 
  
 “Series” means a series of Notes comprising one or more Tranches issued by the same Issuer, whether or not issued on the same date, that
(except in respect of the first payment of interest and their issue price) have identical terms on issue and are expressed to have the same series number; 
  
 “specified office” means, in relation to a Paying Agent, the Registrar or a Transfer Agent the office identified with its name at the end
of the Conditions or any other office approved by the Trustee and notified to Noteholders pursuant to Clause 6.13; 
  
 “Subsidiary” has the meaning specified in Condition 6; 
  
 “Successor” means, in relation to an Agent such other or further person as may from time to time be
appointed by the Issuers as such Agent with the written approval of, and on terms approved in writing by, the Trustee and notice of whose appointment is given to Noteholders pursuant to Clause 6.13; 
  
 “Talons” mean talons for further Coupons or, as the context
may require, a specific number of them and includes any replacement Talons issued pursuant to the Conditions; 
  
 “TARGET System” means the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET) System or any successor thereto;

  
 “temporary Global Note” means a Global Note
representing Bearer Notes of one or more Tranches of the same Series on issue and which shall be substantially in the form set out in Schedule 1 Part A; 
  
 “Tranche” means, in relation to a Series, those Notes of that Series that are issued on the same date at the same issue price and in
respect of which the first payment of interest is identical; 
  
 “Transfer Agents” means the persons (including the Registrar) referred to as such in the Conditions or any Successor Transfer Agents in each case at their specified offices; 
  
 this “Trust Deed” means this amended and restated Trust
Deed; and 
  

 5 

 
“trust corporation” means a trust corporation (as defined in the Law of Property Act 1925) or a corporation entitled to act as a trustee
pursuant to applicable foreign legislation relating to trustees. 
  

	1.2	 	Construction of Certain References: References to: 

  

	 	1.2.1	 	costs, charges, remuneration or expenses include any value added, turnover or similar tax charged in respect thereof; 

  

	 	1.2.2	 	an action, remedy or method of judicial proceedings for the enforcement of creditors’ rights include references to the action, remedy or method of judicial proceedings
in jurisdictions other than England as shall most nearly approximate thereto; 

  

	 	1.2.3	 	words and expressions defined in the Agency Agreement or the Programme Agreement or used in the applicable Pricing Supplement shall have the same meaning where used herein
unless the context otherwise requires or unless otherwise stated and provided that, in the event of inconsistency between the Agency Agreement or the Programme Agreement and this Trust Deed then this Trust Deed shall prevail and, in the event of
inconsistency between the Agency Agreement or the Programme Agreement or this Trust Deed and the applicable Pricing Supplement, the applicable Pricing Supplement shall prevail; and 

  

	 	1.2.4	 	for the purposes of the definition of and references to “outstanding” in Clause 2 and Schedule 3 and for the purpose of Clause 8.9 and Conditions 9, 10 and 14
receipts issued pursuant to Condition 6(f) shall be treated as if they were Notes and for the purposes of Schedule 3 the principal amount of the Notes represented by each receipt will determine voting entitlement thereunder.

  

	1.3	 	Headings: Headings shall be ignored in construing this Trust Deed. 

  

	1.4	 	Contracts: References in this Trust Deed to this Trust Deed or any other document are to this Amended and Restated Trust Deed or those documents as amended,
supplemented or replaced from time to time in relation to the Programme and include any document that amends, supplements or replaces them. 

  

	1.5	 	Schedules: The Schedules are part of this Trust Deed and have effect accordingly and terms defined there and not in the main body of this Trust Deed shall have the
meaning given to them there. 

  

	1.6	 	Alternative Clearing System: References in this Trust Deed to Euroclear and/or Clearstream, Luxembourg shall, wherever the context so permits, be deemed to include
reference to any additional or alternative clearing system approved by the Relevant Issuer, the Trustee and the Issuing and Paying Agent. 

  

	1.7	 	Contracts (Rights of Third Parties) Act 1999: A person who is not a party to this Trust Deed has no right by virtue of the Contracts (Rights of Third Parties) Act 1999
to enforce any term of this Trust Deed. 

  

	1.8	 	Issuers’ Obligations: The obligations of the Issuers under this Trust Deed are several and not joint. 

  

	1.9	 	Amendment and Restatement of Trust Deed: In exercise of its powers of modification and being of the opinion that to do so is not materially prejudicial to the
interests of the Noteholders the Trustee has agreed that the Original Trust Deed, as it may have been 

  

 6 

 amended from time to time prior to the date hereof, shall for the purposes only of Notes issued after the
date hereof be amended and restated as set out herein and any Notes issued after the date hereof shall be issued subject to and with the benefit of this Trust Deed. 
  

	2	 	Issue of Notes and Covenant to pay 

  

	2.1	 	Issue of Notes: Each of the Issuers may from time to time issue Notes in Tranches of one or more Series on a continuous basis with no minimum issue size in accordance
with the Programme Agreement. By not later than 3.00 pm (London time) on the second business day in London (which for this purpose shall be a day on which commercial banks are open for business in London) preceding each proposed issue date, the
Relevant Issuer shall give written notice or procure that it is given to the Trustee of the proposed issue of such Tranche, specifying the details to be included in the relevant Pricing Supplement. Upon the issue by the Relevant Issuer of any Notes
expressed to be constituted by this Trust Deed, such Notes shall forthwith be constituted by this Trust Deed without any further formality and irrespective of whether or not the issue of such debt securities contravenes any covenant or other
restriction in this Trust Deed or the Programme Limit. 

  

	2.2	 	Separate Series: The provisions of sub-Clauses 2.3, 2.4, 2.5 and 2.6 and of Clauses 3 to 15 and Schedule 3 (all inclusive) shall apply mutatis mutandis separately and
independently to the Notes of each Series and in such Clauses and Schedule the expressions “Noteholders”, “Certificates”, “Receipts”, “Coupons”, “Couponholders” and “Talons”, together with
all other terms that relate to Notes or their Conditions, shall be construed as referring to those of the particular Series in question and not of all Series unless expressly so provided, so that each Series shall be constituted by a separate trust
pursuant to sub-Clause 2.3 and that, unless expressly provided, events affecting one Series shall not affect any other. 

  

	2.3	 	Covenant to Pay: The Relevant Issuer shall on any date when any Notes become due to be redeemed, in whole or in part, unconditionally pay to or to the order of the
Trustee in the Contractual Currency, in the case of any Contractual Currency other than euro, in the principal financial centre for the Contractual Currency and in the case of euro, in a city in which banks have access to the TARGET System in same
day funds the Redemption Amount of the Notes becoming due for redemption on that date together with any applicable premium and shall (subject to the Conditions) until such payment (both before and after judgment) unconditionally so pay to or to the
order of the Trustee interest on the principal amount of the Notes outstanding as set out in the Conditions (subject to sub-Clause 2.6) provided that (1) payment of any sum due in respect of the Notes made to the Issuing and Paying Agent as provided
in the Agency Agreement shall, to that extent, satisfy such obligation except to the extent that there is failure in its subsequent payment to the relevant Noteholders or Couponholders under the Conditions and (2) a payment made after the due date
or as a result of the Note becoming repayable following an Event of Default shall be deemed to have been made when the full amount due has been received by the Issuing and Paying Agent or the Trustee and notice to that effect has been given to the
Noteholders (if required under Clause 6.11), except to the extent that there is failure in its subsequent payment to the relevant Noteholders or Couponholders under the Conditions. This covenant shall only have effect each time Notes are issued and
outstanding, when the Trustee shall hold the benefit of this covenant on trust for the Noteholders and Couponholders of the relevant Series. 

  

 7 

	2.4	 	Discharge: Subject to sub-Clause 2.5, any payment to be made in respect of the Notes, Receipts or the Coupons by the Relevant Issuer or the Trustee may be made as
provided in the Conditions and any payment so made shall (subject to sub-Clause 2.5) to that extent be a good discharge to the Relevant Issuer or the Trustee, as the case may be. 

  

	2.5	 	Payment after a Default: At any time after an Event of Default or a Potential Event of Default has occurred the Trustee may: 

  

	 	2.5.1	 	by notice in writing to the Relevant Issuer, the Paying Agents and the Transfer Agents, require the Paying Agents and the Transfer Agents, until notified by the Trustee to
the contrary, so far as permitted by applicable law: 

  

	 	(i)	 	to act as Paying Agents and Transfer Agents of the Trustee under this Trust Deed and the Notes on the terms of the Agency Agreement (with consequential amendments as necessary and
except that the Trustee’s liability for the indemnification, remuneration and expenses of the Paying Agents and the Transfer Agents shall be limited to the amounts for the time being held by the Trustee in respect of the Notes on the terms of
this Trust Deed) and thereafter to hold all Notes, Certificates, Receipts, Coupons and Talons and all moneys, documents and records held by them in respect of Notes, Certificates, Receipts, Coupons and Talons to the order of the Trustee; or

  

	 	(ii)	 	to deliver all Notes, Certificates, Receipts, Coupons and Talons and all moneys, documents and records held by them in respect of the Notes, Certificates, Receipts, Coupons and
Talons to the Trustee or as the Trustee directs in such notice save for documents required to be retained by the Agents by law or regulation; and 

  

	 	2.5.2	 	by notice in writing to the Relevant Issuer require it to make all subsequent payments in respect of the Notes, Receipts, Coupons and Talons to or to the order of the Trustee
and not to the Issuing and Paying Agent. 

  

	2.6	 	Rate of Interest After a Default: If the Notes bear interest at a floating or other variable rate and they become immediately payable under the Conditions, the rate of
interest payable in respect of them shall continue to be calculated by the Calculation Agent in accordance with the Conditions (with consequential amendments as necessary) except that the rates of interest need not be published unless the Trustee
otherwise requires. The first period in respect of which interest shall be so calculable shall commence on the expiry of the Interest Period during which the Notes become so repayable. 

  

	3	 	Form of the Notes 

  

	3.1	 	The Global Notes: The Notes shall initially be represented by a temporary Global Note, a permanent Global Note or one or more Certificates in the principal amount of
the Tranche being issued. Interests in temporary Global Notes shall be exchangeable for Definitive Notes, Registered Notes or interests in permanent Global Notes as set out in each temporary Global Note. Interests in permanent Global Notes shall be
exchangeable for Definitive Notes and/or Registered Notes as set out in each permanent Global Note. 

  

	3.2	 	 The Definitive Notes: The Definitive Notes, Receipts, Coupons and Talons shall be security printed and the Certificates shall be printed, in each case
in accordance with applicable legal and stock exchange requirements substantially in the forms set out in 

  

 8 

	 	 
Schedule 2. The Notes and Certificates (other than Global Certificates) shall be endorsed with the Conditions. 

  

	3.3	 	Signature: The Notes, Certificates, Receipts, Coupons and Talons shall be signed manually or in facsimile by a Director or an authorised signatory of the Relevant
Issuer, the Notes shall be authenticated by or on behalf of the Issuing and Paying Agent and the Certificates shall be authenticated by or on behalf of the Registrar. The Relevant Issuer may use the facsimile signature of a person who at the date of
this Trust Deed is such a Director or an authorised signatory even if at the time of issue of any Notes, Certificates, Receipts, Coupons or Talons he no longer holds that office. Notes, Certificates, Receipts, Coupons and Talons so executed and
authenticated shall be or, in the case of Certificates, represent binding and valid obligations of the Relevant Issuer. 

  

	4	 	Stamp Duties and Taxes 

  

	4.1	 	Stamp Duties: The Relevant Issuer shall pay any stamp, issue, documentary or other taxes and duties, including interest and penalties, payable in Belgium, Luxembourg,
the United Kingdom and the country of each Contractual Currency in respect of the creation, issue and offering of the Notes, Certificates, Receipts, Coupons and Talons and the execution or delivery of this Trust Deed. The Relevant Issuer shall also
indemnify the Trustee, the Noteholders and the Couponholders from and against all stamp, issue, documentary or other taxes paid by any of them in any jurisdiction in connection with any action taken by or on behalf of the Trustee or, as the case may
be, the Noteholders or the Couponholders to enforce the Relevant Issuer’s obligations under this Trust Deed or the Notes, Certificates, Receipts, Coupons or Talons. 

  

	4.2	 	Change of Taxing Jurisdiction: If the Relevant Issuer becomes subject generally to the taxing jurisdiction of a territory or a taxing authority of or in that territory
with power to tax other than or in addition to the United Kingdom or any such authority of or in such territory then the Relevant Issuer shall (unless the Trustee otherwise agrees) give the Trustee an undertaking satisfactory to the Trustee in terms
corresponding to the terms of Condition 8 with the substitution for, or (as the case may require) the addition to, the references in that Condition to the United Kingdom of references to that other or additional territory or authority to whose
taxing jurisdiction the Relevant Issuer has become so subject. In such event this Trust Deed and the Notes, Certificates, Receipts, Coupons and Talons shall be read accordingly. 

  

	5	 	Application of moneys received by the Trustee 

  

	5.1	 	Declaration of Trust: All moneys received by the Trustee in respect of the Notes or amounts payable under this Trust Deed shall, despite any appropriation of all or
part of them by the Relevant Issuer, be held by the Trustee on trust to apply them (subject to Clause 5.2): 

  
 first, in payment of all costs, charges, expenses and liabilities properly incurred by the Trustee (including remuneration payable to it) in carrying out
its functions under this Trust Deed; 
  
 secondly, in payment of
any amounts owing in respect of the Notes, Receipts or Coupons pari passu and rateably; and 
  
 thirdly, in payment of any balance to the Relevant Issuer for itself. 
  

 9 

 If the Trustee holds any moneys in respect of Notes, Receipts or Coupons that have become void or in
respect of which claims have become prescribed, the Trustee shall hold them on these trusts. 
  

	5.2	 	Accumulation: If the amount of the moneys at any time available for payment in respect of the Notes under sub-Clause 5.1 is less than 10 per cent of the principal
amount of the Notes then outstanding, the Trustee may, at its discretion, invest such moneys. The Trustee may retain such investments and accumulate the resulting income until the investments and the accumulations, together with any other funds for
the time being under its control and available for such payment, amount to at least 10 per cent of the principal amount of the Notes then outstanding and then such investments, accumulations and funds (after deduction of, or provision for, any
applicable taxes) shall be applied as specified in sub-Clause 5.1. 

  

	5.3	 	Investment: Moneys held by the Trustee may be invested in its name or under its control in any investments or other assets anywhere whether or not they produce income
or deposited in its name or under its control at such bank or other financial institution in such currency as the Trustee may, in its absolute discretion, think fit. If that bank or institution is the Trustee or a subsidiary, holding or associated
company of the Trustee, it need only account for an amount of interest equal to the largest amount of interest payable by it on such a deposit to an independent customer. The Trustee may at any time vary or transpose any such investments or assets
or convert any moneys so deposited into any other currency, and shall not be responsible for any resulting loss, whether by depreciation in value, change in exchange rates or otherwise. 

  

	6	 	Covenants 

  
 So long as any of the Notes remains outstanding, the Relevant Issuer covenants that it shall: 
  

	6.1	 	at all times carry on and conduct its affairs in a proper manner; 

  

	6.2	 	so far as permitted by applicable law, give to the Trustee such information as it shall require and in such form as it shall require (including without limitation the
procurement by the Relevant Issuer of all such certificates called for by the Trustee pursuant to Clause 8.3) for the purpose of the discharge or exercise of the duties, trusts, powers, authorities and discretions vested in it under these presents
or by operation of law; 

  

	6.3	 	prepare and cause to be audited by the Auditors in respect of each financial accounting period accounts in such form as will comply with all relevant legal and accounting
requirements and all requirements for the time being of the UK Listing Authority; 

  

	6.4	 	at all times keep and procure its Principal Subsidiaries to keep proper books of account and, at any time after the occurrence of an Event of Default or a Potential Event of
Default or if the Trustee certifies in writing to the Relevant Issuer that it has reasonable grounds to believe that an Event of Default or a Potential Event of Default has or may have occurred and so far as permitted by applicable law allow and
procure its Principal Subsidiaries to allow the Trustee and any person appointed by the Trustee to whom the Relevant Issuer or the relevant Principal Subsidiary (as the case may be) shall have no reasonable objection, upon reasonable notice, free
access to such books of account at all reasonable times during normal business hours for the purpose of the discharge or exercise of the duties, trusts, powers, authorities and discretions vested in it under these presents or by operation of law;

  

 10 

	6.5	 	send to the Trustee (in addition to any copies to which it may be entitled as a holder of any securities of the Relevant Issuer) four 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 its creditors (or any class thereof)
generally concerning the financial condition of the Relevant Issuer and its Subsidiaries, in each case in their capacities as such, as soon as practicable after the issue or publication thereof; 

  

	6.6	 	give notice in writing to the Trustee of the occurrence of any Event of Default or any Potential Event of Default immediately upon becoming aware of the same;

  

	6.7	 	send to the Trustee (a) within 14 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 31 March 2003 and in any event not later than 180 days after the end of each such financial period a certificate of the Relevant Issuer signed by two Directors
of such Relevant Issuer to the effect that, to the best of the knowledge, information and belief of the Relevant Issuer, 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 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 Relevant 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; 

  

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

  

	6.9	 	at all times maintain a Principal Paying Agent, a Registrar and a Transfer Agent in accordance with the Conditions and, in the case of a Principal Paying Agent and a
Registrar, so long as any of the Notes or Coupons remains liable to prescription; 

  

	6.10	 	use all reasonable endeavours to 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 Notes 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 Notes or Coupons as the
case may be; 

  

	6.11	 	in the event of the unconditional payment to the Principal Paying Agent of any sum due in respect of the Notes 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 Noteholders in accordance with Condition 16 that such payment has been made; 

  

	6.12	 	 use all reasonable endeavours to maintain the listing of the Notes on the official list maintained by the Financial Services Authority in its capacity as UK
Listing Authority and the trading of such Notes on the market for listed securities of the London Stock Exchange plc or, if it is unable to do so having used all reasonable endeavours or if the maintenance of such listing or trading is in the
reasonable opinion of the Relevant Issuer unduly onerous, use all reasonable endeavours to obtain and maintain a quotation or listing of the Notes on such other stock exchange or exchanges or securities market or markets as the 

  

 11 

 
Relevant Issuer may (with the prior approval of the Trustee, such approval not to be unreasonably withheld or delayed) decide and shall also upon obtaining a
quotation or listing of the Notes on such other stock exchange or exchanges or securities market or markets enter into a deed supplemental to this Trust Deed to effect such consequential amendments to these presents as the Trustee may require to
comply with the requirements of any such stock exchange or securities market; 
  

	6.13	 	give notice to the Noteholders in accordance with Condition 16 of any appointment, resignation or removal of any Agent after having obtained the approval of the Trustee
thereto or any change of any Agent’s specified office and (except as provided by the Agency Agreement) at least 30 days prior to such event taking effect; provided always that so long as any of the Notes remains outstanding in the case of the
termination of the appointment of the Registrar or a Transfer Agent or so long as any of the Notes 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 Registrar, Transfer Agent or Principal Paying Agent has been appointed on terms approved by the Trustee; 

  

	6.14	 	obtain the prior written approval of the Trustee to, and promptly give to the Trustee four copies of, the form of every notice given to the Noteholders in accordance with
Condition 16 (such approval, unless so expressed, not to constitute approval for the purposes of Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom of any such notice which is an invitation or inducement to engage in
investment activity); 

  

	6.15	 	if the Relevant 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, immediately upon becoming 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 8 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 the Relevant Issuer shall have become subject as aforesaid, such Trust Deed also (where applicable) to modify Condition 6(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; 

  

	6.16	 	comply with and perform all its obligations under the Agency Agreement and use all reasonable endeavours to procure that the Agents comply with and perform all their
respective obligations thereunder and not make any amendment or modification to the Agency Agreement without the prior written approval of the Trustee; 

  

	6.17	 	in order to enable the Trustee to ascertain the principal amount of Notes of each Series for the time being outstanding for any of the purposes referred to in the proviso to
the definition of “outstanding” in Clause 1, deliver to the Trustee as soon as reasonably practicable after being so requested in writing by the Trustee a certificate in writing signed by two Directors, or two authorised
signatories, of the Relevant Issuer setting out the total number and aggregate principal amount of Notes of each series which: 

  

 12 

	 	6.17.1	 	up to and including the date of such certificate have been purchased by the Relevant Issuer or any other Subsidiary of the Relevant Issuer and cancelled and

  

	 	6.17.2	 	are at the date of such certificate held for the benefit of, or on behalf of, the Relevant Issuer or any other Subsidiary of the Relevant Issuer 

  

	6.18	 	procure its Subsidiaries to comply with all (if any) applicable provisions concerning the purchase of Notes of Condition 6(g); 

  

	6.19	 	use all reasonable endeavours to procure that each of the Paying Agents makes available for inspection by Noteholders and Couponholders at its specified office copies of
these presents, the Agency Agreement and, as soon as practicable after the date of publication thereof, the then latest audited balance sheet and profit and loss account (consolidated if applicable) of the Relevant Issuer; 

 

	6.20	 	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 Noteholders in accordance with Condition 16; 

  

	6.21	 	give written notice to the Trustee (i) of any designation of any of its Subsidiaries as an Excluded Subsidiary and (ii) forthwith upon any such Excluded Subsidiary ceasing to
be an Excluded Subsidiary for the purpose of Condition 6; 

  

	6.22	 	give to the Trustee at the same time as sending to it the certificates referred to in Clause 6.7 above and in any event not later than 180 days after the last day of each
financial period of the Relevant Issuer, a report by two Directors of the Relevant Issuer listing those Subsidiaries of the Relevant Issuer which as at such last day were Principal Subsidiaries for the purposes of Condition 10;

  

	6.23	 	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 of the
Relevant Issuer or after any transfer is made to any Subsidiary of the Relevant Issuer which thereby becomes a Principal Subsidiary, a report by two Directors of the Relevant Issuer to such effect; 

  

	6.24	 	give to the Trustee as soon as reasonably practicable and, in any event, within 14 days of of any request by the Trustee, a report by two Directors of the Relevant Issuer as
to the amount of Capital and Reserves, at any time; 

  

	6.25	 	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 Notes purchased
by the Relevant Issuer or any Subsidiary of the Relevant Issuer; 

  

	6.26	 	forthwith give notice in writing to the Trustee of: 

  

	 	6.26.1	 	the occurrence of any Restructuring Event or of any event (a “Potential Restructuring Event”) which, depending on any certification as provided in the
definition of “Restructuring Event”, may be a Restructuring Event; 

  

	 	6.26.2	 	(if at the time any Restructuring Event occurs there are Rated Securities) the occurrence of any Rating Downgrade in respect of that Restructuring Event within the
Restructuring Period; and 

  

 13 

	 	6.26.3	 	(if at the time any Restructuring Event occurs there are no Rated Securities) the obtaining of a rating in accordance with the definition of “Negative Rating
Event” or the occurrence of a Negative Rating Event; 

  

	6.27	 	send to the Trustee within fourteen days of any request by the Trustee (such request only to be made after consultation with the Relevant Issuer or after the Relevant Issuer
has failed or refused to be consulted) a certificate signed by any two Directors of the Relevant Issuer giving their opinion on any matter relating to or on any aspect of a Potential Restructuring Event (as defined in Clause 6.25.1 above) requested
by the Trustee and in forming an opinion on whether the Potential Restructuring Event is a Restructuring Event the Trustee shall be entitled, but not bound, to rely solely on such certificate and if it does so rely, such certificate, and the
determination of the Trustee (in reliance on such certificate) as to whether or not a Restructuring Event has occurred, shall be binding on the Relevant Issuer, the Noteholders and the Couponholders and the Trustee shall incur no liability to any
person for so relying on such certificate; and 

  

	6.28	 	procure the delivery of legal opinions addressed to the Trustee dated the date of such delivery, in form and content acceptable to the Trustee: 

  

	 	6.28.1	 	from Linklaters or such other firm of legal advisers as may be agreed between the Issuers and the Trustee as to the laws of England, on each anniversary of this Trust Deed
and on the date of any amendment to this Trust Deed; 

  

	 	6.28.2	 	from legal advisers, reasonably acceptable to the Trustee as to such law as may reasonably be requested by the Trustee, on the issue date for the Notes in the event of a
proposed issue of Notes of such a nature and having such features as might lead the Trustee to conclude that it would be prudent, having regard to such nature and features, to obtain such legal opinion(s) or in the event that the Trustee considers
it prudent in view of a change (or proposed change) in (or in the interpretation or application of) any applicable law, regulation or circumstance affecting the Relevant Issuer, the Trustee, the Notes, the Certificates, the Receipts, the Coupons,
the Talons, this Trust Deed or the Agency Agreement; and 

  

	 	6.28.3	 	on each occasion on which a legal opinion is given to any Dealer in relation to any Notes pursuant to the Programme Agreement from the legal adviser giving such opinion.

  

	7	 	Remuneration and Indemnification of the Trustee 

  

	7.1	 	Normal Remuneration: So long as any Note is outstanding the Relevant Issuer shall pay the Trustee as remuneration for its services as Trustee such sum on such dates in
each case as the Relevant Issuer and the Trustee may from time to time agree. Such remuneration shall accrue from day to day from the date of this Trust Deed. However, if any payment to a Noteholder or Couponholder of moneys due in respect of any
Note, Receipts or Coupon is improperly withheld or refused, such remuneration shall again accrue as from the date of such withholding or refusal until payment to such Noteholder or Couponholder is duly made. 

  

	7.2	 	 Extra Remuneration: If an Event of Default shall have occurred or if the Trustee finds it expedient or necessary or is requested by the Relevant
Issuer to undertake duties that they both agree to be of an exceptional nature or otherwise outside the scope of the Trustee’s normal duties under this Trust Deed, the Relevant Issuer shall pay such additional remuneration as they may agree or,
failing agreement as to any of the matters in 

  

 14 

 
this sub-Clause (or as to such sums referred to in sub-Clause 7.1), as determined by an investment bank (acting as an expert) selected by the Trustee and
approved by the Relevant Issuer or, failing such approval, nominated by the President for the time being of The Law Society of England and Wales. The expenses involved in such nomination and such investment bank’s fee shall be shared equally
between the Trustee and the Relevant Issuer. The determination of such investment bank shall be conclusive and binding on the Relevant Issuer, the Trustee, the Noteholders and the Couponholders. 
  

	7.3	 	Expenses: Each of the Issuers severally undertakes on demand by the Trustee to pay or discharge the full amount of all costs, charges, liabilities and expenses
properly incurred by the Trustee in the preparation and execution of this Trust Deed including, but not limited to, legal and travelling expenses. The Relevant Issuer undertakes on demand by the Trustee to pay or discharge all reasonable costs,
charges, liabilities and expenses properly incurred by the Trustee in the performance of its functions under this Trust Deed including, but not limited to, legal and travelling expenses. For the avoidance of doubt, the foregoing costs, charges,
liabilities and expenses shall only be paid or discharged once in aggregate amount. The Relevant Issuer shall also on demand by the Trustee pay or discharge any stamp, documentary or other taxes or duties paid by the Trustee in connection with any
legal proceedings properly brought or contemplated by the Trustee against the relevant Issuer to enforce any provision of this Trust Deed, the Notes, the Receipts, the Coupons or the Talons. Such costs, charges, liabilities and expenses shall:

  

	 	7.3.1	 	in the case of payments made by the Trustee before such demand, carry interest from the date of the demand at the rate of 2 per cent per annum over the base rate of National
Westminster Bank Plc on the date on which the Trustee made such payments until reimbursement is received by the Trustee; and 

  

	 	7.3.2	 	in other cases, carry interest at such rate from 30 days after the date of the demand or (where the demand specifies that payment is to be made on an earlier date) from such
earlier date until reimbursement is received by the Trustee. 

  

	7.4	 	Indemnity: Subject to Clause 9, the Relevant Issuer shall indemnify the Trustee in respect of all liabilities and expenses properly incurred by it or by anyone
appointed by it or to whom any of its functions may be delegated by it in the carrying out of its functions under this deed and against any loss, liability, proper cost, claim, action, demand or expense (including, but not limited to, all proper
costs, charges and expenses paid or incurred in disputing or defending any of the foregoing) that any of them may incur or that may be made against any of them arising out of or in relation to or in connection with, its appointment or the exercise
of its functions under this deed. 

  

	7.5	 	Continuing Effect: Sub-clauses 7.3 and 7.4 shall continue in full force and effect as regards the Trustee even if it no longer is Trustee. 

  

	7.6	 	Cost Allocation: The Trustee shall be entitled in its absolute discretion to determine in respect of which Series of Notes any costs, charges, liabilities and expenses
incurred under this Trust Deed have been incurred or to allocate any such costs, charges, liabilities and expenses between the Notes of any two or more Series. 

  

	8	 	Provisions supplemental to the Trustee Act 1925 and the Trustee Act 2000 

  

	8.1	 	 Advice: The Trustee may act on the opinion or advice of, or information obtained from, any expert and shall not be responsible to anyone for any loss
occasioned by so acting provided it shall have exercised proper care in the selection of such person. Any such 

  

 15 

 
opinion, advice or information may be sent or obtained by letter, telex or fax and the Trustee shall not be liable to anyone for acting in good faith on any
opinion, advice or information purporting to be conveyed by such means even if it contains some error or is not authentic. 
  

	8.2	 	Resolutions of Noteholders: The Trustee shall not be responsible for having acted in good faith on a resolution purporting to have been passed at a meeting of
Noteholders in respect of which minutes have been made and signed even if it is later found that there was a defect in the constitution of the meeting or the passing of the resolution or that the resolution was not valid or binding on the
Noteholders or Couponholders. 

  

	8.3	 	Certificate Signed by Directors: If the Trustee, in the exercise of its functions, requires to be satisfied or to have information as to any fact or the expediency of
any act, it may call for and accept as sufficient evidence of that fact or the expediency of that act a certificate signed by any two Directors of the Relevant Issuer as to that fact or to the effect that, in their opinion, that act is expedient and
the Trustee need not call for further evidence and shall not be responsible for any loss occasioned by acting on such a certificate. 

  

	8.4	 	Deposit of Documents: The Trustee may appoint as custodian, on any terms, any bank or entity whose business includes the safe custody of documents or any lawyer or
firm of lawyers believed by it to be of good repute and may deposit this Trust Deed and any other documents with such custodian and pay all sums due in respect thereof. The Trustee is not obliged to appoint a custodian if the Trustee invests in
securities payable to bearer. 

  

	8.5	 	Discretion: The Trustee shall have absolute and uncontrolled discretion as to the exercise of its functions and subject to Clause 9 shall not be responsible for any
loss, liability, cost, claim, action, demand, expense or inconvenience that may result from their exercise or non-exercise. 

  

	8.6	 	Agents: Whenever it considers it expedient in the interests of the Noteholders, the Trustee may, in the conduct of its trust business, instead of acting personally,
employ and pay an agent selected by it, whether or not 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 by the Trustee
(including the receipt and payment of money). 

  

	8.7	 	Delegation: Whenever it considers it expedient in the interests of the Noteholders, the Trustee may delegate to any person on any terms (including power to
sub-delegate) all or any of its functions. 

  

	8.8	 	Nominees: In relation to any asset held by it under this Trust Deed, the Trustee may appoint any person to act as its nominee on any terms. 

 

	8.9	 	Forged Notes: The Trustee shall not be liable to the Relevant Issuer or any Noteholder or Couponholder by reason of having accepted as valid or not having rejected any
Note, Certificate, Receipt, Coupon or Talon purporting to be such and later found to be forged or not authentic. 

  

	8.10	 	Confidentiality: Unless ordered to do so by a court of competent jurisdiction, the Trustee shall not be required to disclose to any Noteholder or Couponholder any
confidential financial or other information made available to the Trustee by any Issuer and no Noteholder or Couponholder shall be entitled to take any action to obtain such information from the Trustee. 

  

 16 

	8.11	 	Determinations Conclusive: As between itself and the Noteholders and Couponholders, the Trustee may determine all questions and doubts arising in relation to any of
the provisions of this Trust Deed. Such determinations, whether made upon such a question actually raised or implied in the acts or proceedings of the Trustee, shall be conclusive and shall bind the Trustee, the Noteholders and the Couponholders.

  

	8.12	 	Currency Conversion: Where it is necessary or desirable to convert any sum from one currency to another, it shall (unless otherwise provided hereby or required by law)
be converted at such rate or rates, in accordance with such method and as at such date as may reasonably be specified by the Trustee having consulted the Relevant Issuer (if the Trustee reasonably believes such consultation to be in the interests of
the Noteholders) but having regard to current rates of exchange, if available. Any rate, method and date so specified shall be binding on the Relevant Issuer, the Noteholders and the Couponholders. 

  

	8.13	 	Events of Default: The Trustee may determine whether or not an Event of Default or Potential Event of Default is in its opinion capable of remedy and/or materially
prejudicial to the interests of the Noteholders. Any such determination shall be conclusive and binding on the Relevant Issuer, the Noteholders and the Couponholders. 

  

	8.14	 	Payment for and Delivery of Notes: The Trustee shall not be responsible for the receipt or application by the Relevant Issuer of the proceeds of the issue of the
Notes, any exchange of Notes or the delivery of Notes to the persons entitled to them. 

  

	8.15	 	Legal Opinions: The Trustee shall not be responsible to any person for failing to request, require or receive any legal opinion relating to any Notes or for checking
or commenting upon the content of any such legal opinion. 

  

	8.16	 	Notes Held by the Issuer etc.: In the absence of knowledge or express notice to the contrary, the Trustee may assume without enquiry (other than requesting a
certificate under Clause 6.17) that no Notes are for the time being held by or on behalf of the Relevant Issuer or any of its Subsidiaries. 

  

	8.17	 	Programme Limit: The Trustee shall not be concerned, and need not enquire, as to whether or not any Notes are issued in breach of the Programme Limit.

  

	8.18	 	Consent or Approval: Any consent or approval given by the Trustee for the purposes of this Trust Deed may be given on such terms and subject to such conditions (if
any) as the Trustee thinks fit. 

  

	8.19	 	Recitals: With the exception of Recital (B), the Trustee assumes no responsibility for the correctness of the recitals to this Trust Deed, which shall be taken as
statements of each of the Issuers, and shall not by the execution of this Trust Deed or any Supplemental Trust Deed be deemed to make any representation as to, the adequacy, sufficiency, validity or enforceability of this Trust Deed or any
Supplemental Trust Deed. 

  

	8.20	 	Apportionment: The Trustee may apportion amounts due to it under Clause 5.1 of this Trust Deed between Notes of different Series as it thinks fit.

  

	8.21	 	 Trustee to assume Performance: The Trustee shall not be bound to give notice to any person of the execution of any documents comprised in these
presents or to take any steps to ascertain whether any Event of Default, Potential Event of Default, Restructuring Event, Potential Restructuring Event (as defined in Clause 6.25) or Negative Rating Event has happened and, until it shall have actual
knowledge or express notice to the contrary, the Trustee shall be entitled to assume that no Event of Default, Potential Event of Default, 

  

 17 

 Restructuring Event, Potential Restructuring Event (as defined in Clause 6.25) or Negative Rating Event
has happened and that the Relevant Issuer is observing and performing all its obligations under this Trust Deed, the Notes, the Receipts, the Coupons and the Talons. 
  

	8.22	 	Responsibility for agents etc.: If the Trustee exercises proper care in selecting any custodian, agent, delegate or nominee appointed under this clause (an
“Appointee”), it will not have any obligation to supervise the Appointee or be responsible for any loss, liability, cost, claim, action, demand or expense incurred by reason of the Appointee’s misconduct or default or, where
sub-delegation is permissible in terms of this Trust Deed, the misconduct or default of any sub-delegate. The Trustee shall, as soon as possible after the appointment or the removal of any Appointee or the extension or termination of any such
appointment give written notice thereof to each of the Issuers. 

  

	8.23	 	Trustee Act 2000: To the extent that its application can be excluded, Section 1 of the Trustee Act 2000 shall not apply to the trust constituted by this Trust Deed or
any deed supplemental to it. 

  

	9	 	Trustee liable for negligence 

  
 If the Trustee fails to show the degree of care and diligence required of it as trustee having regard to the provisions of the Trust Deed conferring on it
powers, duties and discretions, nothing in this Trust Deed shall relieve or indemnify it from or against any liability that would otherwise attach to it in respect of any negligence, default, breach of duty or breach of trust of which it may be
guilty. 
  

	10	 	Waiver and proof of default 

  

	10.1	 	Waiver: The Trustee may, without the consent of the Noteholders or Couponholders and without prejudice to its rights in respect of any subsequent breach, from time to
time and at any time, if in its opinion the interests of the Noteholders will not be materially prejudiced thereby, waive or authorise, on such terms as seem expedient to it, any breach or proposed breach by the any of the Issuers of this Trust Deed
or the Conditions or determine that an Event of Default or Potential Event of Default shall not be treated as such provided that the Trustee shall not do so in contravention of an express direction given by an Extraordinary Resolution or a request
made pursuant to Condition 10. No such direction or request shall affect a previous waiver, authorisation or determination. Any such waiver, authorisation or determination shall be binding on the Noteholders and the Couponholders and, if the Trustee
so requires, shall be notified to the Noteholders as soon as practicable. 

  

	10.2	 	Proof of Default: Proof that the Relevant Issuer has failed to pay a sum due to the holder of any one Note, Receipt or Coupon shall (unless the contrary be proved) be
sufficient evidence that it has made the same default as regards all other Notes, Receipts or Coupons that are then payable. 

  

	11	 	Trustee not precluded from entering into contracts 

  
 The Trustee and any other person, whether or not acting for itself, may acquire, hold or dispose of any Note, Receipt, Coupon, Talon or other security (or
any interest therein) of any Issuer or any other person, may enter into or be interested in any contract or transaction with any such person and may act on, or as depositary or agent for, any committee or body of holders of any securities of any
such person in each case with the 

  

 18 

 same rights as it would have had if the Trustee were not acting as Trustee and need not account for any
profit. 
  

	12	 	Modification and Substitution 

  

	12.1	 	Modification: The Trustee may agree without the consent of the Noteholders or Couponholders to any modification to this Trust Deed which is of a formal, minor or
technical nature or to correct a manifest error. The Trustee may also so agree to any modification to this Trust Deed that is in its opinion not materially prejudicial to the interests of the Noteholders, but subject to the provisions of Clause 12.2
such power does not extend to any such modification as is mentioned in paragraphs 2.2 and 2.8 of Schedule 3. 

  

	12.2	 	Substitution: 

  

	 	12.2.1	 	The Trustee may, without the consent of the Noteholders or Couponholders, agree to the substitution of any company (the “Substituted Obligor”) in place of
the Relevant Issuer (or of any previous substitute under this sub-Clause) as the principal debtor under this Trust Deed, the Notes, the Receipts, the Coupons and the Talons provided that: 

  

	 	(i)	 	a deed is executed or undertaking given by the Substituted Obligor to the Trustee, in form and manner satisfactory to the Trustee, agreeing to be bound by this Trust Deed, the
Notes, the Receipts, the Coupons and the Talons (with consequential amendments as the Trustee may deem appropriate) as if the Substituted Obligor had been named in this Trust Deed, the Notes, the Certificates, the Receipts, the Coupons and the
Talons as the principal debtor in place of the Relevant Issuer; 

  

	 	(ii)	 	if the Substituted Obligor is subject generally to the taxing jurisdiction of a territory or any authority of or in that territory with power to tax (the “Substituted
Territory”) other than the territory to the taxing jurisdiction of which (or to any such authority of or in which) the Relevant Issuer is subject generally (the “Issuer’s Territory”), the Substituted Obligor shall
(unless the Trustee otherwise agrees) give to the Trustee an undertaking satisfactory to the Trustee in terms corresponding to Condition 8 with the substitution for the references in that Condition to the Issuer’s Territory of references to the
Substituted Territory, such deed or undertaking also (where applicable) to modify Condition 6(c) so that such Condition shall make reference to the other or additional territory or any political sub-division thereof and any authority therein or
thereof having power to tax whereupon the Trust Deed, the Notes, the Certificates, the Receipts, the Coupons and the Talons shall be read accordingly; 

  

	 	(iii)	 	if any two Directors of the Substituted Obligor certify that it will be solvent immediately after such substitution, the Trustee need not have regard to the Substituted
Obligor’s financial condition, profits or prospects or compare them with those of the Relevant Issuer; 

  

	 	(iv)	 	the Relevant Issuer and the Substituted Obligor comply with such other requirements as the Trustee may direct in the interests of the Noteholders; and 

  

 19 

	 	(v)	 	(unless the Relevant Issuer’s successor in business is the Substituted Obligor) the obligations of the Substituted Obligor as the principal debtor under this Trust Deed, the
Notes and the Coupons are guaranteed by the Relevant Issuer to the Trustee’s satisfaction. 

  

	 	12.2.2	 	Release of Substituted Issuer: An agreement by the Trustee pursuant to sub-Clause 12.2 shall, if so expressed, release the Relevant Issuer (or a previous substitute)
from any or all of its obligations under this Trust Deed, the Notes, the Receipts, the Coupons and the Talons. Notice of the substitution shall be given to the Noteholders within 14 days of the execution of such documents and compliance with such
requirements. 

  

	 	12.2.3	 	Completion of Substitution: On completion of the formalities set out in sub-Clause 12.2, the Substituted Obligor shall be deemed to be named in this Trust Deed, the
Notes, the Certificates, the Receipts, the Coupons and the Talons as the principal debtor in place of the Relevant Issuer (or of any previous substitute) and this Trust Deed, the Notes, the Certificates, the Receipts, the Coupons and the Talons
shall be deemed to be amended as necessary to give effect to the substitution. 

  

	13	 	Appointment, Retirement and Removal of the Trustee 

  

	13.1	 	Appointment: The Relevant Issuer has the power of appointing new trustees but no-one may be so appointed unless previously approved by an Extraordinary Resolution. A
trust corporation shall at all times be a Trustee and may be the sole Trustee. Any appointment of a new Trustee shall be notified by the Relevant Issuer to the Noteholders as soon as practicable. 

  

	13.2	 	Retirement and Removal: Any Trustee may retire at any time on giving at least 3 months’ written notice to the Relevant Issuer without giving any reason or being
responsible for any costs occasioned by such retirement and the Noteholders may by Extraordinary Resolution remove any Trustee provided that the retirement or removal of a sole trust corporation shall not be effective until a trust corporation is
appointed as successor Trustee. If a sole trust corporation gives notice of retirement or an Extraordinary Resolution is passed for its removal, it shall use all reasonable endeavours to procure that another trust corporation be appointed as
Trustee. 

  

	13.3	 	Co-Trustees: The Trustee may, despite sub-Clause 13.1, by written notice to each of the Issuers appoint anyone to act as an additional Trustee jointly with the
Trustee: 

  

	 	13.3.1	 	if the Trustee considers the appointment to be in the interests of the Noteholders and/or the Couponholders; 

  

	 	13.3.2	 	to conform with a legal requirement, restriction or condition in a jurisdiction in which a particular act is to be performed; or 

  

	 	13.3.3	 	to obtain a judgment or to enforce a judgment or any provision of this Trust Deed in any jurisdiction. 

  
 Subject to the provisions of this Trust Deed the Trustee may confer on any
person so appointed such functions as it thinks fit. The Trustee may by written notice to the Relevant Issuer and that person so remove that person. At the Trustee’s request, the Relevant Issuer shall forthwith do all things as may be required
to perfect such appointment or 
  

 20 

 removal and it irrevocably appoints the Trustee as its attorney in its name and on its behalf to do so.

  

	13.4	 	Competence of a Majority of Trustees: If there are more than two Trustees the majority of them shall be competent to perform the Trustee’s functions provided the
majority includes a trust corporation. 

  

	14	 	Notes held in Clearing Systems and Couponholders 

  

	14.1	 	Notes Held in Clearing Systems: So long as any Global Note is, or any Notes represented by a Global Certificate are, held on behalf of a clearing system, in
considering the interests of Noteholders, the Trustee may have regard to any information provided to it by such clearing system or its operator as to the identity (either individually or by category) of its accountholders or participants with
entitlements to any such Global Note or the Registered Notes and may consider such interests on the basis that such accountholders or participants were the holder(s) thereof. 

  

	14.2	 	Couponholders: No notices need be given to Couponholders. They shall be deemed to have notice of the contents of any notice given to Noteholders. Even if it has
express notice to the contrary, in exercising any of its functions by reference to the interests of the Noteholders, the Trustee shall assume that the holder of each Note is the holder of all Receipts, Coupons and Talons relating to it.

  

	15	 	Currency Indemnity 

  

	15.1	 	Currency of Account and Payment: The Contractual Currency is the sole currency of account and payment for all sums payable by the Relevant Issuer under or in
connection with this Trust Deed, the Notes, the Receipts and the Coupons, including damages. 

  

	15.2	 	Extent of Discharge: An amount received or recovered in a currency other than the Contractual Currency (whether as a result of, or of the enforcement of, a judgment or
order of a court of any jurisdiction, in the winding-up or dissolution of the Relevant Issuer or otherwise), by the Trustee or any Noteholder or Couponholder in respect of any sum expressed to be due to it from the Relevant Issuer shall only
discharge the Relevant Issuer to the extent of the Contractual Currency amount that the recipient is able to purchase with the amount so received or recovered in that other currency on the date of that receipt or recovery (or, if it is not
practicable to make that purchase on that date, on the first date on which it is practicable to do so). 

  

	15.3	 	Indemnity: If that Contractual Currency amount is less than the Contractual Currency amount expressed to be due to the recipient under this Trust Deed, the Notes, the
Receipts or the Coupons, the Relevant Issuer shall indemnify it against any loss sustained by it as a result. In any event, the Relevant Issuer shall indemnify the recipient against the cost of making any such purchase. 

  

	15.4	 	Indemnity Separate: The indemnities in this Clause 15 and in sub-Clause 7.4 constitute separate and independent obligations from the other obligations in this Trust
Deed, shall give rise to a separate and independent cause of action, shall apply irrespective of any indulgence granted by the Trustee and/or any Noteholder or Couponholder and shall continue in full force and effect despite any judgment, order,
claim or proof for a liquidated amount in respect of any sum due under this Trust Deed, the Notes, the Receipts and/or the Coupons or any other judgment or order. 

  

 21 

	16	 	Communications 

  

	16.1	 	Method: Each communication under this Trust Deed shall be made by telex, fax or otherwise in writing. Each communication or document to be delivered to any party under
this Trust Deed shall be sent to that party at the telex, fax number or address, and marked for the attention of the person (if any), from time to time designated by that party to the other party for the purpose of this Trust Deed. The initial
telephone number, telex number, fax number, address and person so designated by the parties under this Trust Deed are set out in the Procedures Memorandum. 

  

	16.2	 	Deemed Receipt: Any communication from any party to the other under this Trust Deed shall be effective, (if by telex) when a confirmed answerback is received at the
end of the transmission, (if by fax) when good receipt is confirmed by the recipient following enquiry by the sender and (if in writing) when delivered, except that a communication received outside normal business hours shall be deemed to be
received on the next business day in the city in which the recipient is located. 

  

	17	 	Governing Law and Jurisdiction 

  

	17.1	 	Governing Law: This Trust Deed shall be governed by and construed in accordance with English law. 

  

	17.2	 	Jurisdiction: The courts of England are to have jurisdiction to settle any disputes that may arise out of or in connection with this Trust Deed, the Notes, the
Receipts, the Coupons or the Talons and accordingly any legal action or proceedings arising out of or in connection with this Trust Deed, the Notes, the Receipts, the Coupons or the Talons (“Proceedings”) may be brought in such
courts. Each of the Issuers irrevocably submits to the jurisdiction of such courts and waives any objections to Proceedings in such courts on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient forum. This
submission is for the benefit of each of the Trustee, the Noteholders and the Couponholders and shall not limit the right of any of them to take Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings in any one
or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not). 

  

	17.3	 	 Service of Process: Scottish Power plc shall procure that its London office, whose address is at 5th Floor, 30 Cannon Street, London EC4M 6XH, will act as its agent for service of process in any Proceedings in England. Scottish Power UK plc shall procure that
Scottish Power plc’s London office will act as its agent for service of process in any Proceedings in England. Such service shall be deemed completed on delivery to such process agent (whether or not it is forwarded to and received by the
relevant Issuer). If for any reason such process agent ceases to be able to act as such or no longer has an address in England each Issuer irrevocably agrees to appoint a substitute process agent acceptable to the Trustee and shall immediately
notify the Trustee of such appointment. Nothing shall affect the right to serve process in any other manner permitted by law. 

  

 22 

 SCHEDULE 1 
 Part A 
 Form of Temporary Global Note 
  
 SCOTTISH POWER plc 
  
 (incorporated in Scotland with limited liability under 
 registered number 193794) 
  
 SCOTTISH POWER UK plc 
  
 (incorporated in Scotland with limited liability under 
 registered number 117120) 
  
 DEBT ISSUANCE PROGRAMME 
  
 TEMPORARY GLOBAL
NOTE 
  
 Temporary Global Note No. [•] 

 
 This temporary Global Note is issued in respect of the Notes (the
“Notes”) of the Tranche and Series specified in the Second Schedule hereto of [Scottish Power plc/Scottish Power UK plc] (the “Issuer”). 
  
 Interpretation and Definitions 
  
 References in this temporary Global Note to the “Conditions” are to the Terms and Conditions applicable to the Notes (which are in the form set out in Schedule
2 Part C to the Trust Deed (as amended or supplemented as at the Issue Date, the “Trust Deed”) dated 16 December 2002 between the Issuer, the other issuer named therein and The Law Debenture Trust Corporation p.l.c. as trustee, as
such form is supplemented and/or modified and/or superseded by the provisions of this temporary Global Note (including the supplemental definitions and any modifications or additions set out in the Second Schedule hereto), which in the event of any
conflict shall prevail). Other capitalised terms used in this temporary Global Note shall have the meanings given to them in the Conditions or the Trust Deed. If the Second Schedule hereto specifies that the applicable TEFRA exemption is either
“C Rules” or “not applicable”, this temporary Global Note is a “C Rules Note”, otherwise this temporary Global Note is a “D Rules Note”. 
  
 Aggregate Principal Amount 
  
 The aggregate principal amount from time to time of this temporary Global Note shall be an amount equal to the aggregate principal amount of the Notes as shall be shown
by the latest entry in the fourth column of the First Schedule hereto, which shall be completed by or on behalf of the Issuing and Paying Agent upon (i) the issue of Notes represented hereby, (ii) the exchange of the whole or a part of this
temporary Global Note for a corresponding interest in a permanent Global Note or, as the case may be, for Definitive Notes or Registered Notes, (iii) the redemption or purchase and cancellation of Notes represented hereby and/or (iv) in the case of
Partly-paid Notes, the forfeiture of Notes represented hereby in accordance with the Conditions relating to such Partly-paid Notes, all as described below. 
  
 Promise to Pay 
  
 Subject as provided herein, the Issuer, for value received, promises to pay to the bearer of this temporary Global Note, upon presentation and (when no further payment is due in respect of this temporary Global Note)
surrender of this temporary Global Note, on the Maturity Date (or on such earlier date as the Redemption Amount may become repayable in accordance with the Conditions) 

  

 23 

 the Redemption Amount in respect of the aggregate principal amount of Notes represented by this temporary Global Note and
(unless this temporary Global Note does not bear interest) to pay interest in respect of such aggregate principal amount of Notes from the Interest Commencement Date in arrear at the rates, in the amounts and on the dates for payment provided for in
the Conditions together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions. 
  
 Exchange 
  
 If this temporary Global Note is an Exchangeable Bearer Note, this temporary Global Note may be exchanged in whole or from time to time in part for one or more Registered Notes in accordance with the Conditions on or
after the Issue Date but before the Exchange Date referred to below by its presentation to the Issuing and Paying Agent. On or after the Exchange Date, the outstanding principal amount of this temporary Global Note may be exchanged for Definitive
Notes and Registered Notes in accordance with the next paragraph. 
  
 Subject as
provided in the Conditions applicable to Partly-paid Notes, on or after the first day following the expiry of 40 days after the Issue Date (the “Exchange Date”), this temporary Global Note may be exchanged (free of charge to the
holder) in whole or from time to time in part by its presentation and, on exchange in full, surrender to or to the order of the Issuing and Paying Agent for interests in a permanent Global Note or, if so specified in the Second Schedule hereto, for
Definitive Notes and (if this temporary Global Note is an Exchangeable Bearer Note), in each case, for Registered Notes in an aggregate principal amount equal to the principal amount of this temporary Global Note submitted for exchange provided
that, in the case of any part of this temporary Global Note submitted for exchange for a permanent Global Note or Definitive Notes, there shall have been Certification with respect to such principal amount submitted for such exchange dated no
earlier than the Exchange Date. 
  
 “Certification” means the
presentation to the Issuing and Paying Agent of a certificate or certificates with respect to one or more interests in this temporary Global Note, signed by Euroclear or Clearstream, Luxembourg, substantially to the effect set out in Schedule 4 to
the Agency Agreement to the effect that it has received a certificate or certificates substantially to the effect set out in Schedule 3 to the Agency Agreement with respect thereto and that no contrary advice as to the contents thereof has been
received by Euroclear or Clearstream, Luxembourg, as the case may be. 
  
 Upon the
whole or a part of this temporary Global Note being exchanged for a permanent Global Note, such permanent Global Note shall be exchangeable in accordance with its terms for Definitive Notes or Registered Notes. 
  
 The Definitive Notes or the Certificates representing the Registered Notes for which this
temporary Global Note or a permanent Global Note may be exchangeable shall be duly executed and authenticated, shall, in the case of Definitive Notes, have attached to them all Coupons (and, where appropriate, Talons) in respect of interest, and all
Receipts in respect of Instalment Amounts, that have not already been paid on this temporary Global Note or the permanent Global Note, as the case may be, shall be security printed or, in the case of Certificates, printed in accordance with
applicable legal and stock exchange requirements and shall be substantially in the form set out in the Schedules to the Trust Deed as supplemented and/or modified and/or superseded by the terms of the Second Schedule hereto. Certificates issued upon
exchange for Registered Notes shall not be Global Certificates unless the holder so requests and certifies to the Issuing and Paying Agent that it is, or is acting as a nominee for, Clearstream, Luxembourg, Euroclear and/or any other clearing
system. 
  

 24 

 On any exchange of a part of this temporary Global Note for an equivalent interest in a permanent Global Note, for
Definitive Notes or for Registered Notes, as the case may be, the portion of the principal amount hereof so exchanged shall be endorsed by or on behalf of the Issuing and Paying Agent in Part I of the First Schedule hereto, whereupon the principal
amount hereof shall be reduced for all purposes by the amount so exchanged and endorsed. 
  
 Benefit of Conditions 
  
 Except as
otherwise specified herein, this temporary Global Note is subject to the Conditions and the Trust Deed and, until the whole of this temporary Global Note is exchanged for equivalent interests in a permanent Global Note, for Definitive Notes or for
Registered Notes, as the case may be, the holder of this temporary Global Note shall in all respects be entitled to the same benefits as if it were the holder of the permanent Global Note (or the relevant part of it) or the Definitive Notes, as the
case may be, for which it may be exchanged as if such permanent Global Note or Definitive Notes had been issued on the Issue Date. 
  
 Payments 
  
 No person shall be entitled to receive any payment in respect of the Notes represented by this temporary Global Note that falls due on or after the Exchange Date unless, upon due presentation of this temporary Global
Note for exchange, delivery of (or, in the case of a subsequent exchange, due endorsement of) a permanent Global Note or delivery of Definitive Notes or Certificates, as the case may be, is improperly withheld or refused by or on behalf of the
Issuer. 
  
 Payments due before the Exchange Date shall only be made in relation
to such principal amount of this temporary Global Note with respect to which there shall have been Certification dated no earlier than such due date for payment. 
  
 Any payments that are made in respect of this temporary Global Note shall be made to its holder against presentation and (if no further
payment falls to be made on it) surrender of it at the specified office of the Issuing and Paying Agent or of any other Paying Agent provided for in the Conditions. If any payment in full of principal is made in respect of any Note represented by
this temporary Global Note, the portion of this temporary Global Note representing such Note shall be cancelled and the amount so cancelled shall be endorsed by or on behalf of the Issuing and Paying Agent in the First Schedule hereto (such
endorsement being prima facie evidence that the payment in question has been made) whereupon the principal amount hereof shall be reduced for all purposes by the amount so cancelled and endorsed. If any other payments are made in respect of
the Notes represented by this temporary Global Note, a record of each such payment shall be endorsed by or on behalf of the Issuing and Paying Agent on an additional schedule hereto (such endorsement being prima facie evidence that the
payment in question has been made). 
  
 Cancellation 
  
 Cancellation of any Note represented by this temporary Global Note that is required by the
Conditions to be cancelled (other than upon its redemption) shall be effected by reduction in the principal amount of this temporary Global Note representing such Note on its presentation to or to the order of the Issuing and Paying Agent for
endorsement in the First Schedule hereto, whereupon the principal amount hereof shall be reduced for all purposes by the amount so cancelled and endorsed. 
  
 Notices 
  
 Notices required to be given in respect of the Notes represented by this temporary Global Note may be given by their being delivered (so long as this temporary Global Note is held on behalf of Euroclear and
Clearstream, Luxembourg or any other clearing system) to Euroclear, Clearstream, 

  

 25 

 Luxembourg or such other clearing system, as the case may be, or otherwise to the holder of this temporary Global Note,
rather than by publication as required by the Conditions. 
  
 No provision of this
temporary Global Note shall alter or impair the obligation of the Issuer to pay the principal and premium of and interest on the Notes when due in accordance with the Conditions. 
  
 This temporary Global Note shall not be valid or become obligatory for any purpose until authenticated by or on behalf of the Issuing and
Paying Agent. 
  
 This temporary Global Note shall be governed by and construed in
accordance with English law. 
  

 26 

 In witness whereof the Issuer has caused this temporary Global Note to be duly signed on its behalf. 

 
 Dated as of the Issue Date. 
  
 [SCOTTISH POWER plc/SCOTTISH POWER UK plc] 
  

By: 
  
 CERTIFICATE OF AUTHENTICATION 
  
 This temporary Global Note is
authenticated 
 by or on behalf of the Issuing and Paying Agent. 
  
 CITIBANK, N.A. 
  
 as Issuing and Paying Agent 
  
 By: 
  
 Authorised Signatory 
 For the purposes of authentication only. 
 Without recourse, warranty or liability. 
  
 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. 
  

 27 

 THE FIRST SCHEDULE 
  
 Principal amount of Notes represented by this temporary Global Note 
  
 The following (i) issue of Notes initially represented by this temporary Global Note, (ii)
exchanges of the whole or a part of this temporary Global Note for interests in a permanent Global Note, for Definitive Notes or for Registered Notes and/or (iii) cancellations or forfeitures of interests in this temporary Global Note have been
made, resulting in the principal amount of this temporary Global Note specified in the latest entry in the fourth column below: 
  

	 Date

	  	 Amount of
 decrease in
 principal amount
 of this temporary
 Global Note

	  	 Reason for
 decrease in
 principal amount
 of this temporary
 Global Note
 (exchange,
 cancellation
or
 forfeiture)

	  	 Principal amount
 of this temporary
 Global Note on
 issue or
 following such
 decrease

	  	 Notation made
 by or on behalf
 of the Issuing
 and Paying
 Agent

	 Issue Date
	  	not applicable	  	not applicable	  	 	  	 

  
 [Insert the provisions of the relevant
Pricing Supplement that relate to the Conditions or the Global Notes as the Second Schedule] 
  

 28 

 SCHEDULE 1 
 Part B 
 Form of Permanent Global Note 
  
 SCOTTISH POWER plc 
  
 (incorporated in Scotland with limited liability under 
 registered number 193794) 
  
 SCOTTISH POWER UK plc 
  
 (incorporated in Scotland with limited liability under 
 registered number 117120) 
  
 DEBT ISSUANCE PROGRAMME 
  
 Permanent Global
Note No. [•] 
  
 This permanent Global Note is issued in respect of the
Notes (the “Notes”) of the Tranche(s) and Series specified in the Third Schedule hereto of [Scottish Power plc/Scottish Power UK plc] (the “Issuer”). 
  
 Interpretation and Definitions 
  
 References in this permanent Global Note to the “Conditions” are to the Terms and Conditions applicable to the Notes (which are in the form set out in Schedule
2 Part C to the Trust Deed (as amended or supplemented as at the Issue Date, the “Trust Deed”) dated 16 December 2002 between the Issuer, the other issuer named therein and The Law Debenture Trust Corporation p.l.c. as trustee, as
such form is supplemented and/or modified and/or superseded by the provisions of this permanent Global Note (including the supplemental definitions and any modifications or additions set out in the Third Schedule hereto), which in the event of any
conflict shall prevail). Other capitalised terms used in this permanent Global Note shall have the meanings given to them in the Conditions or the Trust Deed. 
  

Aggregate Principal Amount 
  
 The aggregate principal amount from time to time of this permanent Global Note shall be an amount equal to the aggregate principal amount of the Notes as shall be shown
by the latest entry in the fourth column of the First Schedule hereto, which shall be completed by or on behalf of the Issuing and Paying Agent upon (i) the exchange of the whole or a part of the temporary Global Note initially representing the
Notes for a corresponding interest herein (in the case of Notes represented by a temporary Global Note upon issue), (ii) the issue of the Notes represented hereby (in the case of Notes represented by this permanent Global Note upon issue), (iii) the
exchange of the whole or, where the limited circumstances so permit, a part of this permanent Global Note for Definitive Notes or Registered Notes, (iv) the redemption or purchase and cancellation of Notes represented hereby and/or (v) in the case
of Partly-paid Notes, the forfeiture of Notes represented hereby in accordance with the Conditions relating to such Partly-paid Notes, all as described below. 
  

Promise to Pay 
  
 Subject as provided herein, the Issuer, for value received, hereby promises to pay to the bearer of this permanent Global Note, upon presentation and (when no further payment is due in respect of this permanent Global
Note) surrender of this permanent Global Note, on the Maturity Date (or on such earlier date as the Redemption Amount may become repayable in accordance with the Conditions) the Redemption Amount in respect of the aggregate principal amount of Notes

  

 29 

 
represented by this permanent Global Note and (unless this permanent Global Note does not bear interest) to pay interest in respect of such aggregate
principal amount of Notes from the Interest Commencement Date in arrear at the rates, in the amounts and on the dates for payment provided for in the Conditions together with such other sums and additional amounts (if any) as may be payable under
the Conditions, in accordance with the Conditions. 
  
 Exchange 

 
 This permanent Global Note is exchangeable (free of charge to the holder) on or after the
Exchange Date in whole but not, except as provided in the next paragraph, in part for the Definitive Notes or (if this permanent Global Note is an Exchangeable Bearer Note) Registered Notes represented by the Certificates described below:

  

	(i)	 	by the Issuer giving notice to the Issuing and Paying Agent and the Noteholders of its intention to effect such exchange 

  

	(ii)	 	if the Third Schedule hereto provides that this permanent Global Note is exchangeable for Definitive Notes at the request of the holder, by such holder giving notice to the Issuing
and Paying Agent of its election for such exchange 

  

	(iii)	 	if this permanent Global Note is an Exchangeable Bearer Note, by the holder hereof giving notice to the Issuing and Paying Agent of its election to exchange the whole or a part of
this permanent Global Note for Registered Notes or 

  

	(iv)	 	otherwise, if this permanent Global Note is held on behalf of Euroclear or Clearstream, Luxembourg or any other clearing system (an “Alternative Clearing System”)
and any such clearing system is closed for business for a continuous period of 14 days (other than by reason of holidays, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so.

  
 This permanent Global Note is exchangeable in part (provided,
however, that if this permanent Global Note is held by or on behalf of Euroclear and/or Clearstream, Luxembourg, the rules of Euroclear and/or Clearstream, Luxembourg, as the case may be, so permit) (i) if this permanent Global Note is an
Exchangeable Bearer Note and the part hereof submitted for exchange is to be exchanged for Registered Notes or (ii) if so provided, and in accordance with, the Conditions relating to Partly-paid Notes. 
  
 “Exchange Date” means a day falling not less than 60 days, or in the case of
an exchange for Registered Notes 5 days, after that on which the notice requiring exchange is given and on which banks are open for business in the city in which the specified office of the Issuing and Paying Agent is located and, except in the case
of exchange pursuant to (iv) above, in the cities in which Euroclear and Clearstream, Luxembourg or, if relevant, the Alternative Clearing System, are located. 
  

Subject as provided in the Conditions applicable to Partly-paid Notes, any such exchange may be effected on or after an Exchange Date by the holder of this permanent
Global Note surrendering this permanent Global Note or, in the case of a partial exchange, presenting it for endorsement to or to the order of the Issuing and Paying Agent. In exchange for this permanent Global Note, or part thereof to be exchanged,
the Issuer shall deliver, or procure the delivery of, duly executed and authenticated Definitive Notes and/or (if this permanent Global Note is an Exchangeable Bearer Note) Certificates in an aggregate principal amount equal to the principal amount
of this permanent Global Note submitted for exchange (if appropriate, having attached to them all Coupons (and, where appropriate, Talons) in respect of interest, and all Receipts in respect of Instalment Amounts, that have not already been paid on
this permanent Global Note), security 

  

 30 

 
printed or, in the case of Certificates, printed in accordance with any applicable legal and stock exchange requirements and substantially in the form set
out in Schedule 2 to the Trust Deed as supplemented and/or modified and/or superseded by the terms of the Third Schedule hereto. Certificates issued upon exchange for Registered Notes shall not be Global Certificates unless the holder so requests
and certifies to the Issuing and Paying Agent that it is, or is acting as a nominee for, Clearstream, Luxembourg, Euroclear and/or an Alternative Clearing System. 
  
 On any exchange of a part of this permanent Global Note the portion of the principal amount hereof so exchanged shall be endorsed by or on
behalf of the Issuing and Paying Agent in the First Schedule hereto, whereupon the principal amount hereof shall be reduced for all purposes by the amount so exchanged and endorsed. 
  
 Benefit of Conditions 
  
 Except as otherwise specified herein, this permanent Global Note is subject to the Conditions and the Trust Deed and, until the whole of this permanent Global Note is
exchanged for Definitive Notes or Registered Notes, the holder of this permanent Global Note shall in all respects be entitled to the same benefits as if it were the holder of the Definitive Notes for which it may be exchanged and as if such
Definitive Notes had been issued on the Issue Date. 
  
 Payments

  
 No person shall be entitled to receive any payment in respect of the
Notes represented by this permanent Global Note that falls due after an Exchange Date for such Notes, unless upon due presentation of this permanent Global Note for exchange, delivery of Definitive Notes or Certificates is improperly withheld or
refused by or on behalf of the Issuer or the Issuer does not perform or comply with any one or more of what are expressed to be its obligations under any Definitive Notes. 
  
 Payments in respect of this permanent Global Note shall be made to its holder against presentation and (if no further payment falls to be
made on it) surrender of it at the specified office of the Issuing and Paying Agent or of any other Paying Agent provided for in the Conditions. A record of each such payment shall be endorsed on the First or Second Schedule hereto, as appropriate,
by the Issuing and Paying Agent or by the relevant Paying Agent, for and on behalf of the Issuing and Paying Agent, which endorsement shall (until the contrary is proved) be prima facie evidence that the payment in question has been made.

  
 Prescription 
  
 Claims in respect of principal and interest (as each is defined in the Conditions) in
respect of this permanent Global Note shall become void unless it is presented for payment within a period of 10 years (in the case of principal) and 5 years (in the case of interest) from the appropriate Relevant Date. 
  
 Meetings 
  
 The holder of this permanent Global Note shall be treated at any meeting of Noteholders, as having one vote in respect of each principal
amount of Notes equal to the minimum Denomination of the Notes for which this permanent Global Note may be exchanged. 
  
 Cancellation 
  
 Cancellation of any Note represented by this permanent Global Note that is required by the Conditions to be cancelled (other than upon its redemption) shall be effected by reduction in the principal amount of this
permanent Global Note representing such Note on its presentation to or to the order of the Issuing and Paying Agent for endorsement in the First Schedule hereto, 

  

 31 

 
whereupon the principal amount hereof shall be reduced for all purposes by the amount so cancelled and endorsed. 
  
 Purchase 
  
 Notes may only be purchased by the Issuer or any of its subsidiaries if they are purchased together with the right to receive all future
payments of interest and Instalment Amounts (if any) thereon. 
  
 Issuer’s
Options 
  
 Any option of the Issuer provided for in the Conditions shall be
exercised by the Issuer giving notice to the Noteholders within the time limits set out in and containing the information required by the Conditions, except that the notice shall not be required to contain the serial numbers of Notes drawn in the
case of a partial exercise of an option and accordingly no drawing of Notes shall be required. 
  
 Noteholders’ Options 
  
 Any option
of the Noteholders provided for in the Conditions may be exercised by the holder of this permanent Global Note giving notice to the Issuing and Paying Agent within the time limits relating to the deposit of Notes with a Paying Agent set out in the
Conditions substantially in the form of the notice available from any Paying Agent, except that the notice shall not be required to contain the certificate numbers of the Notes in respect of which the option has been exercised, and stating the
principal amount of Notes in respect of which the option is exercised and at the same time presenting this permanent Global Note to the Issuing and Paying Agent, or to a Paying Agent acting on behalf of the Issuing and Paying Agent, for notation
accordingly in the Fourth Schedule hereto. 
  
 Notices 
  
 Notices required to be given in respect of the Notes represented by this permanent Global
Note may be given by their being delivered (so long as this permanent Global Note is held on behalf of Euroclear, Clearstream, Luxembourg or any other clearing system) to Euroclear, Clearstream, Luxembourg or such other clearing system, as the case
may be, or otherwise to the holder of this permanent Global Note, rather than by publication as required by the Conditions. 
  
 Negotiability 
  
 This permanent Global Note is a bearer document and negotiable and accordingly: 
  

	(i)	 	is freely transferable by delivery and such transfer shall operate to confer upon the transferee all rights and benefits appertaining hereto and to bind the transferee with all
obligations appertaining hereto pursuant to the Conditions 

  

	(ii)	 	the holder of this permanent Global Note is and shall be absolutely entitled as against all previous holders to receive all amounts by way of Redemption Amount interest or otherwise
payable in respect of this permanent Global Note and the Issuer has waived against such holder and any previous holder of this permanent Global Note all rights of set-off or counterclaim that would or might otherwise be available to it in respect of
the obligations evidenced by this Global Note and 

  

	(iii)	 	payment upon due presentation of this permanent Global Note as provided herein shall operate as a good discharge against such holder and all previous holders of this permanent
Global Note. 

  

 32 

 No provision of this permanent Global Note shall alter or impair the obligation of the Issuer to pay the principal and
premium of and interest on the Notes when due in accordance with the Conditions. 
  
 This permanent Global Note shall not be valid or become obligatory for any purpose until authenticated by or on behalf of the Issuing and Paying Agent. 
  

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

 33 

 In witness whereof the Issuer has caused this permanent Global Note to be duly signed on its behalf. 

 
 Dated as of the Issue Date. 
  
 [SCOTTISH POWER plc/SCOTTISH POWER UK plc] 
  

By: 
  
 CERTIFICATE OF AUTHENTICATION 
  
 This permanent Global Note is
authenticated 
 by or on behalf of the Issuing and Paying Agent. 
  
 CITIBANK, N.A. 
  
 as Issuing and Paying Agent 
  
 By: 
  
 Authorised Signatory 
 For the purposes of authentication only. 
 Without recourse, warranty or liability. 
  
 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. 
  

 34 

 THE FIRST SCHEDULE 
  
 Principal amount of Notes represented by this permanent Global Note 
  
 The following (i) issues of Notes initially represented by this permanent Global Note, (ii)
exchanges of interests in a temporary Global Note for interests in this permanent Global Note, (iii) exchanges of the whole or a part of this permanent Global Note for Definitive Notes or for Registered Notes, (iv) cancellations or forfeitures of
interests in this permanent Global Note and/or (v) payments of Redemption Amount in respect of this permanent Global Note have been made, resulting in the principal amount of this permanent Global Note specified in the latest entry in the fourth
column: 
  

	 Date

	 	 Amount of
 increase/decrease
 in principal
 amount of this
permanent Global
 Note

	 	 Reason for
 increase/decrease
 in principal
 amount of this
 permanent Global
 Note (initial issue,
 exchange,
 cancellation,
 forfeiture or
 payment, stating
 amount of
 payment made)

	 	 Principal amount
of this permanent Global
Note
following such
 increase/decrease

	 	 Notation made
 by or on behalf
 of the Issuing
 and Paying
 Agent

  
  

 35 

 THE SECOND SCHEDULE 
  
 Payments of Interest 
  
 The following payments of interest or Interest Amount in respect of this Permanent Global Note have been made: 
  

	 Due date of
payment

	 	 Date of payment

	 	 Amount of interest

	  	 Notation made by or on
behalf of the Issuing and
Paying Agent

  
 [Insert the provisions of the relevant
Pricing Supplement that relate to the Conditions or the Global Notes as the Third Schedule.] 
  

 36 

 THE FOURTH SCHEDULE 
  
 Exercise of Noteholders’ Option 
  
 The following exercises of the option of the Noteholders provided for in the Conditions have been made in respect of the stated principal
amount of this permanent Global Note: 
  

	 Date of exercise

	 	 Principal amount of
 this permanent Global
 Note in respect of
 which exercise is
 made

	 	 Date of which
 exercise of such
 option is effective

	  	 Notation made by or
 on behalf of the
Issuing and Paying
Agent

  

 37 

 SCHEDULE 1 
 Part C 
 Form of Global Certificate 
  
 SCOTTISH POWER plc 
  
 (incorporated in Scotland with limited liability under 
 registered number 193794) 
  
 SCOTTISH POWER UK plc 
  
 (incorporated in Scotland with limited liability under 
 registered number 117120) 
  
 DEBT ISSUANCE PROGRAMME 
  
 GLOBAL CERTIFICATE

  
 Global Certificate No. [•] 
  
 Registered Holder: 
  
 Address of Registered Holder: 
  
 Principal amount of Notes 
 represented by this Global 
 Certificate: 
  
 This Global Certificate is issued in respect of the principal amount specified above of the Notes (the “Notes”) of the Tranche and Series specified in the Schedule hereto of [Scottish Power
plc/Scottish Power UK plc] (the “Issuer”). This Global Certificate certifies that the Registered Holder (as defined above) is registered as the holder of such principal amount of the Notes at the date hereof. 
  
 Interpretation and Definitions 
  
 References in this Global Certificate to the “Conditions” are to the Terms and
Conditions applicable to the Notes (which are in the form set out in Schedule 2 Part C to the Trust Deed (as amended or supplemented as at the Issue Date, the “Trust Deed”) dated 16 December 2002 between the Issuer, the other issuer
named therein and The Law Debenture Trust Corporation p.l.c. as trustee, as such form is supplemented and/or modified and/or superseded by the provisions of this Global Certificate (including the supplemental definitions and any modifications or
additions set out in the Schedule hereto), which in the event of any conflict shall prevail). Other capitalised terms used in this Global Certificate shall have the meanings given to them in the Conditions or the Trust Deed. 
  
 Promise to Pay 
  
 The Issuer, for value received, promises to pay to the holder of the Notes represented by this Global Certificate upon presentation and
(when no further payment is due in respect of the Notes represented by this Global Certificate) surrender of this Global Certificate on the Maturity Date (or on such earlier date as the Redemption Amount may become repayable in accordance with the
Conditions) the Redemption Amount in respect of the Notes represented by this Global Certificate and (unless the Notes represented by this Certificate do not bear interest) to pay interest in respect of such Notes from the Interest Commencement Date
in arrear at the rates, in the amounts and on the dates for payment provided for in the Conditions together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions. 

 

 38 

 For the purposes of this Global Certificate, (a) the holder of the Notes represented by this Global Certificate is bound
by the provisions of the Agency Agreement, (b) the Issuer certifies that the Registered Holder is, at the date hereof, entered in the Register as the holder of the Notes represented by this Global Certificate, (c) this Global Certificate is evidence
of entitlement only, (d) title to the Notes represented by this Global Certificate passes only on due registration in the Register, and (e) only the holder of the Notes represented by this Global Certificate is entitled to payments in respect of the
Notes represented by this Global Certificate. 
  
 Transfer of Notes represented
by permanent Global Certificates 
  
 If the Schedule hereto states that the
Notes are to be represented by a permanent Global Certificate on issue, transfers of the holding of Notes represented by this Global Certificate pursuant to Condition 2(b) may only be made in part: 
  

	(i)	 	if the Notes represented by this Global Certificate are held on behalf of Euroclear or Clearstream, Luxembourg or any other clearing system (an “Alternative Clearing
System”) and any such clearing system is closed for business for a continuous period of 14 days (other than by reason of holidays, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so or

  

	(ii)	 	with the consent of the Issuer 

  
 provided that, in the case of the first transfer of part of a holding pursuant to (i) above, the holder of the Notes represented by this Global Certificate has given the
Registrar not less than 30 days’ notice at its specified office of such holder’s intention to effect such transfer. Where the holding of Notes represented by this Global Certificate is only transferable in its entirety, the Certificate
issued to the transferee upon transfer of such holding shall be a Global Certificate. Where transfers are permitted in part, Certificates issued to transferees shall not be Global Certificates unless the transferee so requests and certifies to the
Registrar that it is, or is acting as a nominee for, Clearstream, Luxembourg, Euroclear and/or an Alternative Clearing System. 
  
 Meetings 
  
 The holder of the Notes represented by this Global Certificate shall (unless this Global Certificate represents only one Note) be treated as two persons for the purposes of any quorum requirements of a meeting of
Noteholders. 
  
 This Global Certificate shall not become valid for any purpose
until authenticated by or on behalf of the Registrar. 
  

 39 

 In witness whereof the Issuer has caused this Global Certificate to be signed on its behalf. 
  
 Dated as of the Issue Date. 
  
 [SCOTTISH POWER plc/SCOTTISH POWER UK plc] 
  

By: 
  
 CERTIFICATE OF AUTHENTICATION 
  
 This Global Certificate is
authenticated 
 by or on behalf of the Registrar. 
  
 CITIBANK, N.A. 
  
 as Registrar 
  
 By: 
  
 Authorised Signatory 
 For the purposes of authentication only. 
 Without recourse, warranty or liability. 
  

 40 

 Form of Transfer 
  
 For value received the undersigned transfers to 
  

			
	 	 	
	 	 
	 	 	  

	 	 

  
 (PLEASE PRINT OR
TYPEWRITE NAME AND ADDRESS OF TRANSFEREE) 
  
 [•] principal amount of the
Notes represented by this Global Certificate, and all rights under them. 
  

	 Dated
	 	 	  	  

			
	 Signed
	 	  

	  	Certifying Signature

  
 Notes: 
  

	(i)	 	The signature of the person effecting a transfer shall conform to a list of duly authorised specimen signatures supplied by the holder of the Notes represented by this Global
Certificate or (if such signature corresponds with the name as it appears on the face of this Global Certificate) be certified by a notary public or a recognised bank or be supported by such other evidence as a Transfer Agent or the Registrar may
reasonably require. 

  

	(ii)	 	A representative of the Noteholder should state the capacity in which he signs e.g. executor. 

  
 [Insert the provisions of the relevant Pricing Supplement that relate to the Conditions or the Global Certificate as the Schedule.]

  

 41 

 SCHEDULE 2 
 Part A 
 Form of Bearer Note 
  
 On the front: 
  

	[Denomination]	 	[ISIN]	 	[Series]	 	[Certif. No.]

  
 [Currency and denomination]

  
 SCOTTISH POWER plc 
  
 (incorporated in Scotland with limited liability under
 
 registered number 193794) 
  
 SCOTTISH POWER UK plc 
  
 (incorporated in Scotland with limited liability under 
 registered number 117120) 
  
 DEBT ISSUANCE PROGRAMME 
  
 Series No. [•]

  
 [Title of issue] 
  
 This Note forms one of the Series of Notes referred to above (the “Notes”)
of [Scottish Power plc/Scottish Power UK plc] (the “Issuer”) designated as specified in the title hereof. The Notes are subject to the Terms and Conditions (the “Conditions”) endorsed hereon and are issued subject
to, and with the benefit of, the Trust Deed referred to in the Conditions. Expressions defined in the Conditions have the same meanings in this Note. 
  
 The Issuer for value received promises to pay to the bearer of this Note, on presentation and (when no further payment is due in respect of this Note) surrender of this
Note on the Maturity Date (or on such earlier date as the Redemption Amount may become repayable in accordance with the Conditions) the Redemption Amount and (unless this Note does not bear interest) to pay interest from the Interest Commencement
Date in arrear at the rates, in the amounts and on the dates for payment provided for in the Conditions together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions.

  
 This Note shall not become valid or obligatory for any purpose until
authenticated by or on behalf of the Issuing and Paying Agent. 
  

 42 

 In witness whereof the Issuer has caused this Note to be signed on its behalf. 
  
 Dated as of the Issue Date. 
  
 [SCOTTISH POWER plc/SCOTTISH POWER UK plc] 
  

By: 
  
 CERTIFICATE OF AUTHENTICATION 
  
 This Note is authenticated

 by or on behalf of the Issuing and Paying Agent. 
  
 CITIBANK, N.A. 
  
 as Issuing and Paying Agent 
  
 By: 
  
 Authorised Signatory 
 For the purposes of authentication only. 
 Without recourse, warranty or liability. 
  
 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. 
  

 43 

 On the back: 
  
 Terms and Conditions of the Notes 
  
 [The Terms and Conditions that are set out in Schedule 2 Part C to the Trust Deed as amended by and incorporating any additional provisions forming part of such Terms and
Conditions and set out in the relevant Pricing Supplement shall be set out here.] 
  
 ISSUING AND PAYING AGENT 
  
 CITIBANK, N.A. 
 5 Carmelite Street 
 London 
 EC4Y 0PA 
  
 PAYING AGENT 
  
 CITIBANK AG, FRANKFURT 
 Reuterweg 16 
 60323 Frankfurt am Main 
  

 44 

 SCHEDULE 2 
 Part B 
 Form of Certificate 
  
 On the front: 
  
 SCOTTISH POWER plc 
  
 (incorporated in Scotland with limited liability under 
 registered number 193794) 
  
 SCOTTISH POWER UK plc 
  
 (incorporated in
Scotland with limited liability under  
 registered number 117120) 
  
 DEBT ISSUANCE PROGRAMME 
  
 Series No. [•] 
  
 [Title of issue] 
  
 This Certificate certifies that [•] of [•] (the “Registered
Holder”) is, as at the date hereof, registered as the holder of [principal amount] of Notes of the Series of Notes referred to above (the “Notes”) of [Scottish Power plc/Scottish Power UK plc] (the
“Issuer”), designated as specified in the title hereof. The Notes are subject to the Terms and Conditions (the “Conditions”) endorsed hereon and are issued subject to, and with the benefit of, the Trust Deed
referred to in the Conditions. Expressions defined in the Conditions have the same meanings in this Certificate. 
  
 The Issuer, for value received, promises to pay to the holder of the Note(s) represented by this Certificate upon presentation and (when no further payment is due in
respect of the Note(s) represented by this Certificate) surrender of this Certificate on the Maturity Date (or on such earlier date as the Redemption Amount may become repayable in accordance with the Conditions) the Redemption Amount in respect of
the Notes represented by this Certificate and (unless the Note(s) represented by this Certificate do not bear interest) to pay interest in respect of such Notes from the Interest Commencement Date in arrear at the rates, in the amounts and on the
dates for payment provided for in the Conditions together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions. 
  
 For the purposes of this Certificate, (a) the holder of the Note(s) represented by this Certificate is bound by the provisions of the Agency
Agreement, (b) the Issuer certifies that the Registered Holder is, at the date hereof, entered in the Register as the holder of the Note(s) represented by this Certificate, (c) this Certificate is evidence of entitlement only, (d) title to the
Note(s) represented by this Certificate passes only on due registration in the Register, and (e) only the holder of the Note(s) represented by this Certificate is entitled to payments in respect of the Note(s) represented by this Certificate.

  
 This Certificate shall not become valid for any purpose until authenticated by
or on behalf of the Registrar. 
  

 45 

 In witness whereof the Issuer has caused this Certificate to be signed on its behalf. 
  
 Dated as of the Issue Date. 
  
 [SCOTTISH POWER plc/SCOTTISH POWER UK plc] 
  

By: 
  
 CERTIFICATE OF AUTHENTICATION 
  
 This Certificate is
authenticated 
 by or on behalf of the Registrar. 
  
 CITIBANK, N.A. 
  
 as Registrar 
  
 By: 
  
 Authorised Signatory 
 For the purposes of authentication only. 
 Without recourse, warranty or liability. 
  

 46 

 On the back: 
  
 Terms and Conditions of the Notes 
  
 [The Terms and Conditions that are set out in Schedule 2 Part C to the Trust Deed as amended by and incorporating any additional provisions forming part of such Terms and
Conditions and set out in the relevant Pricing Supplement shall be set out here.] 
  
 Form of Transfer 
  
 For value
received the undersigned transfers to 

	 	 	  

	 	 
	 	 	  

	 	 

  
 (PLEASE PRINT OR
TYPEWRITE NAME AND ADDRESS OF TRANSFEREE) 
  
 [•] principal amount of the
Notes represented by this Certificate, and all rights under them. 
  

	 Dated
	 	 	  	  

			
	 Signed
	 	  

	  	Certifying Signature

  
 Notes: 
  

	(i)	 	The signature of the person effecting a transfer shall conform to a list of duly authorised specimen signatures supplied by the holder of the Notes represented by this Certificate
or (if such signature corresponds with the name as it appears on the face of this Certificate) be certified by a notary public or a recognised bank or be supported by such other evidence as a Transfer Agent or the Registrar may reasonably require.

  

	(ii)	 	A representative of the Noteholder should state the capacity in which he signs. 

  
 ISSUING AND PAYING AGENT, TRANSFER AGENT AND REGISTRAR 
  
 CITIBANK, N.A. 
 5 Carmelite Street 
 London 
 EC4Y 0PA 
  
 PAYING AGENT AND TRANSFER AGENT 

 
 CITIBANK AG, FRANKFURT 
 Reuterweg 16 
 60323 Frankfurt am Main

  

 47 

 SCHEDULE 2 
 Part C 
 Terms and Conditions of the Notes 
  

 48 

 Terms and Conditions of the Notes 
  
 The following is the text of the terms and conditions that, subject to completion and minor amendment and as supplemented or varied in
accordance with the provisions of the relevant Pricing Supplement, shall be applicable to the Notes in definitive form (if any) issued in exchange for the Global Note(s) representing each Series. Either (i) the full text of the relevant provisions
of these terms and conditions together with the relevant provisions of the Pricing Supplement or (ii) these terms and conditions as so completed, amended, supplemented or varied (and subject to simplification by the deletion of non-applicable
provisions), shall be endorsed on such Bearer Notes or on the Certificates relating to such Registered Notes. Words and expressions defined in the Trust Deed or the Agency Agreement or used in the applicable Pricing Supplement shall have the same
meanings where used in these Conditions unless the context otherwise requires or unless otherwise stated provided that, in the event of inconsistency between the Agency Agreement and the Trust Deed, the Trust Deed will prevail and, in the event of
inconsistency between the Agency Agreement or the Trust Deed and the applicable Pricing Supplement, the applicable Pricing Supplement will prevail. Those definitions will be endorsed on the definitive Notes or Certificates, as the case may be.
References in the Conditions to “Notes” are to the Notes of one Series only, not to all Notes that may be issued under the Programme. References in the Conditions to the “Issuer” shall be references to the party specified as such
in the relevant Pricing Supplement. 
  
 The Notes are constituted by an
Amended and Restated Trust Deed (as amended or supplemented as at the date of issue of the Notes (the “Issue Date”), the “Trust Deed”) dated 16th December 2002 between Scottish Power plc, Scottish Power UK plc and The Law
Debenture Trust Corporation p.l.c. (the “Trustee”, which expression shall include all persons for the time being the trustee or trustees under the Trust Deed) as trustee for the Noteholders (as defined below). These terms and conditions
include summaries of, and are subject to, the detailed provisions of the Trust Deed, which includes the form of the Bearer Notes, Certificates, Receipts, Coupons and Talons referred to below. An Amended and Restated Agency Agreement (as amended or
supplemented as at the Issue Date, the “Agency Agreement”) dated 16th December 2002 has been entered into in relation to the Notes between Scottish Power plc, Scottish Power UK plc, the Trustee, Citibank, N.A., London as initial issuing
and paying agent and the other agents named in it. The issuing and paying agent, the paying agents, the registrar, the transfer agents and the calculation agent(s) for the time being (if any) are referred to below respectively as the “Issuing
and Paying Agent”, the “Paying Agents” (which expression shall include the Issuing and Paying Agent), the “Registrar”, the “Transfer Agents” (which expression shall include the Registrar) and the “Calculation
Agent(s)”. Copies of the relevant Pricing Supplement, Trust Deed and the Agency Agreement are available for inspection during usual business hours at the registered office of the Trustee (presently at Fifth Floor, 100 Wood Street, London EC2V
7EX) and at the specified offices of the Paying Agents and the Transfer Agents. 
  
 The Noteholders, the holders of the interest coupons (the “Coupons”) appertaining to interest bearing Notes in bearer form and, where applicable in the case of such Notes, talons for further Coupons (the “Talons”) (the
“Couponholders”) and the holders of the receipts for the payment of instalments of principal (the “Receipts”) relating to Notes in bearer form of which the principal is payable in instalments are entitled to the benefit of, are
bound by, and are deemed to have notice of, all the provisions of the Trust Deed and the relevant Pricing Supplement and are deemed to have notice of those provisions applicable to them of the Agency Agreement. 
  
 Provisions in square brackets are only applicable to Notes issued by Scottish Power plc.
Provisions in square brackets preceded by an asterisk are only applicable to Notes issued by Scottish Power UK plc. 
  

	1.	 	Form, Denomination and Title 

  
 The Notes are issued in bearer form (“Bearer Notes”, which expression includes Notes that are specified to be Exchangeable Bearer Notes), in registered form
(“Registered Notes”) or in bearer form exchangeable for Registered Notes (“Exchangeable Bearer Notes”) in each case in the Denomination(s) shown thereon. 
  

 49 

 All Registered Notes shall have the same Denomination. Where Exchangeable Bearer Notes are issued, the Registered Notes
for which they are exchangeable shall have the same Denomination as the lowest denomination of Exchangeable Bearer Notes. 
  
 Bearer Notes are serially numbered and are issued with Coupons (and, where appropriate, a Talon) attached, save in the case of Notes that do not bear interest in which
case references to interest (other than in relation to interest due after the Maturity Date), Coupons and Talons in these Conditions are not applicable. Any Bearer Note the principal amount of which is redeemable in instalments is issued with one or
more Receipts attached. 
  
 Registered Notes are represented by registered
certificates (“Certificates”) and, save as provided in Condition 2(c), each Certificate shall represent the entire holding of Registered Notes by the same holder. 
  
 Title to the Bearer Notes and the Receipts, Coupons and Talons shall pass by delivery. Title to the Registered Notes shall pass by
registration in the register that the Issuer shall procure to be kept by the Registrar in accordance with the provisions of the Agency Agreement (the “Register”). Except as ordered by a court of competent jurisdiction or as required by
law, the holder (as defined below) of any Note, Receipt, Coupon or Talon shall be deemed to be and may be treated as its absolute owner for all purposes whether or not it is overdue and regardless of any notice of ownership, trust or an interest in
it, any writing on it (or on the Certificate representing it) or its theft or loss (or that of the related Certificate) and no person shall be liable for so treating the holder. 
  
 In these Conditions, “Noteholder” means the bearer of any Bearer Note and the Receipts relating to it or the person in whose name
a Registered Note is registered (as the case may be), “holder” (in relation to a Note, Receipt, Coupon or Talon) means the bearer of any Bearer Note, Receipt, Coupon or Talon or the person in whose name a Registered Note is registered (as
the case may be) and capitalised terms have the meanings given to them hereon, the absence of any such meaning indicating that such term is not applicable to the Notes. 
  

	2.	 	Exchanges of Exchangeable Bearer Notes and Transfers of Registered Notes 

  

	(a)	 	Exchange of Exchangeable Bearer Notes 

  
 Subject as provided in Condition 2(f), Exchangeable Bearer Notes may be exchanged for the same aggregate principal amount of Registered Notes at the request in
writing of the relevant Noteholder and upon surrender of each Exchangeable Bearer Note to be exchanged, together with all unmatured Receipts, Coupons and Talons relating to it, at the specified office of any Transfer Agent; provided, however, that
where an Exchangeable Bearer Note is surrendered for exchange after the Record Date (as defined in Condition 7(b)) for any payment of interest, the Coupon in respect of that payment of interest need not be surrendered with it. Registered
Notes may not be exchanged for Bearer Notes. Bearer Notes of one Denomination may not be exchanged for Bearer Notes of another Denomination. Bearer Notes that are not Exchangeable Bearer Notes may not be exchanged for Registered Notes. 

 

	(b)	 	Transfer of Registered Notes 

  
 One or more Registered Notes may be transferred upon the surrender (at the specified office of the Registrar or any Transfer Agent) of the Certificate representing such
Registered Notes to be transferred, together with the form of transfer endorsed on such Certificate duly completed and executed and any other evidence as the Registrar or Transfer Agent may reasonably require. In the case of a transfer of part only
of a holding of Registered Notes represented by one Certificate, a new Certificate shall be issued to the transferee in respect of the part transferred and a further new Certificate in respect of the balance of the holding not transferred shall be
issued to the transferor. 
  

	(c)	 	Exercise of Options or Partial Redemption in Respect of Registered Notes 

  
 In the case of an exercise of the Issuer’s or Noteholders’ option in respect of, or a partial redemption of, a holding of
Registered Notes represented by a single Certificate, a new Certificate shall be issued to the holder to reflect the exercise of such option or in respect of the balance of the holding not redeemed. In the case of a partial exercise of an option
resulting in Registered Notes of the same holding having different terms, separate Certificates 

  

 50 

 
shall be issued in respect of those Notes of that holding that have the same terms. New Certificates shall only be issued against surrender of the existing
Certificates to the Registrar or any Transfer Agent. In the case of a transfer of Registered Notes to a person who is already a holder of Registered Notes, a new Certificate representing the enlarged holding shall only be issued against surrender of
the Certificate representing the existing holding. 
  

	(d)	 	Delivery of New Certificates 

  
 Each new Certificate to be issued pursuant to Conditions 2(a), (b) or (c) shall be available for delivery within five business days of receipt of the
request for exchange, form of transfer or Exercise Notice or surrender of the Certificate for exchange. Delivery of the new Certificate(s) shall be made at the specified office of the Transfer Agent or of the Registrar (as the case may be) to whom
delivery or surrender of such request for exchange, form of transfer, Exercise Notice or Certificate shall have been made or, at the option of the holder making such delivery or surrender as aforesaid and as specified in the relevant request for
exchange, form of transfer, Exercise Notice or otherwise in writing, be mailed by uninsured post at the risk of the holder entitled to the new Certificate to such address as may be so specified, unless such holder requests otherwise and pays in
advance to the relevant Agent the costs of such other method of delivery and/or such insurance as it may specify. In this Condition 2(d), “business day” means a day, other than a Saturday or Sunday, on which banks are open for
business in the place of the specified office of the relevant Transfer Agent or the Registrar. 
  

	(e)	 	Exchange Free of Charge 

  
 Exchange and transfer of Notes and Certificates on registration, transfer, exercise of an option or partial redemption shall be effected without charge by or on behalf of
the Issuer, the Registrar or the Transfer Agents, but upon payment by a Noteholder of any tax or other governmental charges that may be imposed in relation to it (or the giving by a Noteholder of such indemnity as the Registrar or the relevant
Transfer Agent may reasonably require). 
  

	(f)	 	Closed Periods 

  
 No Noteholder may require the transfer of a Registered Note to be registered or an Exchangeable Bearer Note to be exchanged for one or more Registered Note(s) (i) during the period of 15 days ending on the due date
for redemption of, or payment of any Instalment Amount in respect of, that Note, (ii) during the period of 15 days prior to any date on which Notes may be called for redemption by the Issuer at its option pursuant to Condition 6(d), (iii)
after any such Note has been called for redemption or (iv) during the period of seven days ending on (and including) any Record Date. An Exchangeable Bearer Note called for redemption may, however, be exchanged for one or more Registered Note(s) in
respect of which the Certificate is simultaneously surrendered not later than the relevant Record Date. 
  

	3.	 	Status 

  
 The Notes and the Receipts and Coupons constitute (subject to Condition 4) unsecured obligations of the Issuer and shall at all times rank pari passu and without any preference among themselves. The payment
obligations of the Issuer under the Notes and the Receipts and Coupons shall, save for such exceptions as may be provided by applicable legislation and subject to Condition 4, at all times rank at least equally with all other unsecured and
unsubordinated indebtedness and monetary obligations of the Issuer, present and future. 
  

	4.	 	Negative Pledge 

  
 So long as any of the Notes remains outstanding (as defined in the Trust Deed) the Issuer will ensure that no Relevant Indebtedness of the Issuer or any Negative Pledge Company (as defined in Condition 6) or of any
other person and no guarantee by the Issuer or any Negative Pledge Company of any Relevant Indebtedness (as defined in Condition 6) of any person will be secured by a mortgage, charge, lien, pledge or other security interest (each a “Security
Interest”) upon, or with respect to, any of the present or future business, undertaking, assets or revenues (including any uncalled capital) of the Issuer or any Negative Pledge Company unless the Issuer shall, before or at the same time as the
creation of the Security Interest, take any and all action necessary to ensure that: 
  

 51 

 (i) all amounts payable by it under the Notes, the Receipts, the Coupons and the Trust Deed are secured equally and
rateably with the Relevant Indebtedness or guarantee, as the case may be, by the Security Interest to the satisfaction of the Trustee; or 
  
 (ii) such other Security Interest or guarantee or other arrangement (whether or not including the giving of a Security Interest) is provided in respect of all amounts
payable by the Issuer under the Notes, the Receipts, the Coupons and the Trust Deed either (i) as the Trustee shall in its absolute discretion deem not materially less beneficial to the interests of the Noteholders or (ii) as shall be approved by an
Extraordinary Resolution (as defined in the Trust Deed) of the Noteholders, 
  
 save that the Issuer or any Negative Pledge Company may create or have outstanding a Security Interest in respect of any Relevant Indebtedness and/or any guarantees given by the Issuer or any Negative Pledge Company in respect of any
Relevant Indebtedness of any person (without the obligation to provide a Security Interest or guarantee or other arrangement in respect of the Notes, the Receipts, the Coupons and the Trust Deed as aforesaid) where (1) such Relevant Indebtedness has
an initial maturity of not less than twenty years and is of a maximum aggregate amount outstanding at any time not exceeding the greater of £250,000,000 or 20% of the Capital and Reserves (as defined in Condition 6) or (2) such Security
Interest is provided in respect of a company becoming a Subsidiary of the Issuer after the date of the relevant Pricing Supplement and where such Security Interest existed at the time that company becomes a Subsidiary of the Issuer (provided that
such Security Interest was not created in contemplation of that company becoming a Subsidiary of the Issuer and the principal amount secured at the time of that company becoming a Subsidiary of the Issuer is not subsequently increased). 

 

	5.	 	Interest and Other Calculations 

  

	(a)	 	Interest Rate and Accrual 

  
 Each Note bears interest on its outstanding principal amount from the Interest Commencement Date at the rate per annum (expressed as a percentage) equal to the Interest
Rate, such interest being payable in arrear on each Interest Payment Date. 
  
 Interest shall cease to accrue on each Note on the due date for redemption unless, upon due presentation, payment of principal is improperly withheld or refused, in which event interest shall continue to accrue (as well after as before
judgment) at the Interest Rate in the manner provided in this Condition 5 to the Relevant Date (as defined in Condition 8). 
  

	(b)	 	Business Day Convention 

  
 If any date referred to in these Conditions that is specified to be subject to adjustment in accordance with a Business Day Convention would otherwise fall on a day that
is not a Business Day, then, if the Business Day Convention specified is (i) the Floating Rate Business Day Convention, such date shall be postponed to the next day that is a Business Day unless it would thereby fall into the next calendar month, in
which event (A) such date shall be brought forward to the immediately preceding Business Day and (B) each subsequent such date shall be the last Business Day of the month in which such date would have fallen had it not been subject to adjustment,
(ii) the Following Business Day Convention, such date shall be postponed to the next day that is a Business Day, (iii) the Modified Following Business Day Convention, such date shall be postponed to the next day that is a Business Day unless it
would thereby fall into the next calendar month, in which event such date shall be brought forward to the immediately preceding Business Day or (iv) the Preceding Business Day Convention, such date shall be brought forward to the immediately
preceding Business Day. 
  

	(c)	 	Interest Rate on Floating Rate Notes 

  
 If the Interest Rate is specified in the Pricing Supplement as being Floating Rate, the Interest Rate for each Interest Accrual Period shall be determined by the
Calculation Agent at or about the Relevant Time on the Interest Determination Date in respect of each Interest Accrual Period in accordance with the following: 
  

(i) if the Primary Source for the Floating Rate is a Page, subject as provided below, the Interest Rate shall be: 
  
 (x) the Relevant Rate (where such Relevant Rate on such Page is a composite quotation or is
customarily supplied by one entity); or 
  

 52 

 (y) the arithmetic mean of the Relevant Rates of the persons whose Relevant Rates appear on that Page, 
  
 in each case appearing on such Page at the Relevant Time on the Interest Determination Date

  
 (ii) if the Page specified in the Pricing Supplement as a Primary Source
permanently ceases to quote the Relevant Rate(s) but such quotation(s) is/are available from another page, section or other part of such information service selected by the Calculation Agent (the “Replacement Page”), the Replacement Page
shall be substituted as the Primary Source for Interest Rate Quotations and if no Replacement Page exists but such quotation(s) is/are available from a page, section or other part of a different information service selected by the Calculation Agent
and approved by the Issuer (the “Secondary Replacement Page”), the Secondary Replacement Page shall be substituted as the Primary Source for Interest Rate Quotations 
  
 (iii) if the Primary Source for the Floating Rate is Reference Banks (as defined below) or if sub-paragraph (i)(x) applies and no Relevant
Rate appears on the Page at the Relevant Time on the Interest Determination Date or if sub-paragraph (i)(y) above applies and fewer than two Relevant Rates appear on the Page at the Relevant Time on the Interest Determination Date, subject as
provided below, the Interest Rate shall be the arithmetic mean of the Relevant Rates that each of the Reference Banks is quoting to leading banks in the Relevant Financial Centre at the Relevant Time on the Interest Determination Date, as determined
by the Calculation Agent and 
  
 (iv) if paragraph (iii) above applies, and the
Calculation Agent determines that fewer than two Reference Banks are so quoting Relevant Rates, subject as provided below, the Interest Rate shall be the arithmetic mean of the rates per annum (expressed as a percentage) that the Calculation Agent
determines to be the rates (being the nearest equivalent to the Benchmark) in respect of a Representative Amount of the Relevant Currency that at least two out of five leading banks selected by the Calculation Agent in the principal financial centre
of the country of the Relevant Currency or, if the Relevant Currency is euro, in the Euro-zone as selected by the Calculation Agent (the “Principal Financial Centre”) are quoting at or about the Relevant Time on the date on which such
banks would customarily quote such rates for a period commencing on the Effective Date for a period equivalent to the Specified Duration (x) to leading banks carrying on business in Europe, or (if the Calculation Agent determines that fewer than two
of such banks are so quoting to leading banks in Europe) (y) to leading banks carrying on business in the Principal Financial Centre; except that, if fewer than two of such banks are so quoting to leading banks in the Principal Financial Centre, the
Interest Rate shall be the Interest Rate determined on the previous Interest Determination Date (after readjustment for any difference between any Margin, Rate Multiplier or Maximum or Minimum Interest Rate applicable to the preceding Interest
Accrual Period and to the relevant Interest Accrual Period). 
  

	(d)	 	Interest Rate on Zero Coupon Notes 

  
 Where a Note the Interest Rate of which is specified in the Pricing Supplement to be Zero Coupon is repayable prior to the Maturity Date and is not paid when due, the
amount due and payable prior to the Maturity Date shall be the Redemption Amount of such Note. As from the Maturity Date, the Interest Rate for any overdue principal of such a Note shall be a rate per annum (expressed as a percentage) equal to the
Amortisation Yield (as defined in Condition 6(b)). 
  

	(e)	 	Margin, Maximum/Minimum Interest Rates, Instalment Amounts and Redemption Amounts, Rate Multipliers and Rounding 

  
 (i) If any Margin or Rate Multiplier is specified in the Pricing Supplement (either (x)
generally, or (y) in relation to one or more Interest Accrual Periods), an adjustment shall be made to all Interest Rates, in the case of (x), or the Interest Rates for the specified Interest Accrual Periods, in the case of (y), calculated in
accordance with Condition 5(c) above by adding (if a positive number) or subtracting the absolute value (if a negative number) of such Margin or multiplying by such Rate Multiplier, subject always to the next paragraph. 
  

 53 

 (ii) If any Maximum or Minimum Interest Rate, Instalment Amount or Redemption Amount is specified in the Pricing
Supplement, then any Interest Rate, Instalment Amount or Redemption Amount shall be subject to such maximum or minimum, as the case may be. 
  
 (iii) For the purposes of any calculations required pursuant to these Conditions (unless otherwise specified in the Pricing Supplement), (x) all percentages resulting
from such calculations shall be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point (with halves being rounded up), (y) all figures shall be rounded to seven significant figures (with halves being rounded up) and (z)
all currency amounts that fall due and payable shall be rounded to the nearest unit of such currency (with halves being rounded up), save in the case of yen, which shall be rounded down to the nearest yen. For these purposes “unit” means
the lowest amount of such currency that is available as legal tender in the country(ies) of such currency and, with respect to euro, means 0.01 euro. 
  

	(f)	 	Calculations 

  
 The amount of interest payable in respect of any Note for any period shall be calculated by multiplying the product of the Interest Rate and the outstanding principal amount of such Note by the Day Count Fraction,
unless an Interest Amount (or a formula for its calculation) is specified in respect of such period, in which case the amount of interest payable in respect of such Note for such period shall equal such Interest Amount (or be calculated in
accordance with such formula). Where any Interest Period comprises two or more Interest Accrual Periods, the amount of interest payable in respect of such Interest Period shall be the sum of the amounts of interest payable in respect of each of
those Interest Accrual Periods. 
  

	(g)	 	Determination and Publication of Interest Rates, Interest Amounts, Redemption Amounts and Instalment Amounts 

  
 As soon as practicable after the Relevant Time on each Interest Determination Date or such
other time on such date as the Calculation Agent may be required to calculate any Redemption Amount or Instalment Amount, obtain any quote or make any determination or calculation, it shall determine the Interest Rate and calculate the amount of
interest payable (the “Interest Amounts”) in respect of each Denomination of the Notes for the relevant Interest Accrual Period, calculate the Redemption Amount or Instalment Amount, obtain such quote or make such determination or
calculation, as the case may be, and cause the Interest Rate and the Interest Amounts for each Interest Period and the relevant Interest Payment Date and, if required to be calculated, the Redemption Amount or any Instalment Amount to be notified to
the Trustee, the Issuer, each of the Paying Agents, the Noteholders, any other Calculation Agent appointed in respect of the Notes that is to make a further calculation upon receipt of such information and, if the Notes are listed on a stock
exchange and the rules of such exchange or other relevant authority so require, such exchange or other relevant authority as soon as possible after their determination but in no event later than (i) the commencement of the relevant Interest Period,
if determined prior to such time, in the case of notification to such exchange of an Interest Rate and Interest Amount, or (ii) in all other cases, the fourth Business Day after such determination. Where any Interest Payment Date or Interest Period
Date is subject to adjustment pursuant to Condition 5(b), the Interest Amounts and the Interest Payment Date so published may subsequently be amended (or appropriate alternative arrangements made with the consent of the Trustee by way of
adjustment) without notice in the event of an extension or shortening of the Interest Period. If the Notes become due and payable under Condition 10, the accrued interest and the Interest Rate payable in respect of the Notes shall nevertheless
continue to be calculated as previously in accordance with this Condition but no publication of the Interest Rate or the Interest Amount so calculated need be made unless the Trustee otherwise requires. The determination of each Interest Rate,
Interest Amount, Redemption Amount and Instalment Amount, the obtaining of each quote and the making of each determination or calculation by the Calculation Agent(s) shall (in the absence of manifest error) be final and binding upon all parties.

  

	(h)	 	Determination or Calculation by Trustee 

  
 If the Calculation Agent does not at any time for any reason determine or calculate the Interest Rate for an Interest Period or any Interest Amount, Instalment Amount or
Redemption Amount, the Trustee shall do so (or shall appoint an agent on its behalf to do 

  

 54 

 
so) and such determination or calculation shall be deemed to have been made by the Calculation Agent. In doing so, the Trustee shall apply the foregoing
provisions of this Condition, with any necessary consequential amendments, to the extent that, in its opinion, it can do so, and, in all other respects it shall do so in such manner as it shall deem fair and reasonable in all the circumstances.

  

	(i)	 	Definitions 

  
 In these Conditions, unless the context otherwise requires, the following defined terms shall have the meanings set out below: 
  

“Business Day” means: 
  
 (i) in the case of a specified currency other than euro, a day (other than a Saturday or Sunday) on which commercial banks and foreign exchange markets settle payments in
the principal financial centre for that currency; and/or 
  
 (ii) in the case of
euro, a day on which the TARGET system is operating (a “TARGET Business Day”); and/or 
  
 (iii) in the case of a specified currency with one or more financial centres, a day (other than a Saturday or Sunday) on which commercial banks and foreign exchange markets settle payments in the specified currency in
the specified financial centre or, if no financial centre is specified, generally in each of such financial centres. 
  
 “Day Count Fraction” means, in respect of the calculation of an amount of interest on any Note for any period of time (from and including the first day of such
period to but excluding the last) (whether or not constituting an Interest Period, the “Calculation Period”): 
  
 (i) if “Actual/365” or “Actual/Actual-ISDA” is specified in the Pricing Supplement, the actual number of days in the Calculation Period divided by 365
(or, if any portion of that Calculation Period falls in a leap year, the sum of (A) the actual number of days in that portion of the Calculation Period falling in a leap year divided by 366 and (B) the actual number of days in that portion of the
Calculation Period falling in a non-leap year divided by 365); 
  
 (ii) if
“Actual/365 (Fixed)” is specified in the Pricing Supplement, the actual number of days in the Calculation Period divided by 365; 
  
 (iii) if “Actual/360” is specified in the Pricing Supplement, the actual number of days in the Calculation Period divided by 360; 
  
 (iv) if “30/360”, “360/360” or “Bond Basis” is specified in the
Pricing Supplement, the number of days in the Calculation Period divided by 360 (the number of days to be calculated on the basis of a year of 360 days with 12 30-day months (unless (a) the last day of the Calculation Period is the 31st day of a
month but the first day of the Calculation Period is a day other than the 30th or 31st day of a month, in which case the month that includes that last day shall not be considered to be shortened to a 30-day month, or (b) the last day of the
Calculation Period is the last day of the month of February, in which case the month of February shall not be considered to be lengthened to a 30-day month)); and 
  
 (v) if “30E/360” or “Eurobond Basis” is specified in the Pricing Supplement, the number of days in the Calculation
Period divided by 360 (the number of days to be calculated on the basis of a year of 360 days with 12 30-day months, without regard to the date of the first day or last day of the Calculation Period unless, in the case of a Calculation Period ending
on the Maturity Date, the Maturity Date is the last day of the month of February, in which case the month of February shall not be considered to be lengthened to a 30-day month); and 
  
 (vi) if “Actual/Actual-ISMA” is specified hereon: 
  
 (a) if the Calculation Period is equal to or shorter than the Determination Period during which it falls, the number of days in the
Calculation Period divided by the product of (x) the number of days in such Determination Period and (y) the number of Determination Periods normally ending in any year; and 
  
 (b) if the Calculation Period is longer than one Determination Period, the sum of: 
  
 (x) the number of days in such Calculation Period falling in the Determination Period in
which it begins divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Periods normally ending in any year; and 
  

 55 

 (y) the number of days in such Calculation Period falling in the next Determination Period divided by the product of (1)
the number of days in such Determination Period and (2) the number of Determination Periods normally ending in any year 
  
 where: 
  
 “Determination Period” means the period from and including a Determination Date in any year to but excluding the next Determination Date. 
  
 “Effective Date” means, with respect to any Floating Rate to be determined on an Interest Determination Date, the date specified as such in the Pricing
Supplement or, if none is so specified, the first day of the Interest Accrual Period to which such Interest Determination Date relates. 
  
 “Euro-zone” means the region comprised of member states of the European Union that adopt the single currency in accordance with the Treaty establishing the
European Community, as amended. 
  
 “Interest Accrual Period” means the
period beginning on (and including) the Interest Commencement Date and ending on (but excluding) the first Interest Period Date and each successive period beginning on (and including) an Interest Period Date and ending on (but excluding) the next
succeeding Interest Period Date. 
  
 “Interest Commencement Date” means
the Issue Date or such other date as may be specified in the Pricing Supplement. 
  
 “Interest Determination Date” means, with respect to an Interest Rate and Interest Accrual Period, the date specified as such in the Pricing Supplement or, if none is so specified and the Relevant Currency is not euro, (i) the
first day of such Interest Accrual Period if the Relevant Currency is Sterling or (ii) the day falling two Business Days in London for the Relevant Currency prior to the first day of such Interest Accrual Period if the Relevant Currency is neither
Sterling nor euro or (iii) the day falling two TARGET Business Days prior to the first day of such Interest Accrual Period if the Relevant Currency is euro. 
  
 “Interest Period” means the period beginning on (and including) the Interest Commencement Date and ending on (but excluding) the first Interest Payment Date and
each successive period beginning on (and including) an Interest Payment Date and ending on (but excluding) the next succeeding Interest Payment Date. 
  
 “Interest Period Date” means each Interest Payment Date unless otherwise specified in the Pricing Supplement. 
  
 “Interest Rate” means the rate of interest payable from time to time in respect of
this Note and that is either specified or calculated in accordance with the provisions in the Pricing Supplement. 
  
 “Page” means such page, section, caption, column or other part of a particular information service (including, but not limited to, Reuters Markets 3000
(“Reuters”) and Moneyline Telerate (“Moneyline Telerate”)) as may be specified for the purpose of providing a Relevant Rate, or such other page, section, caption, column or other part as may replace it on that information service
or on such other information service, in each case as may be nominated by the person or organisation providing or sponsoring the information appearing there for the purpose of displaying rates or prices comparable to that Relevant Rate. 

 
 “Reference Banks” means the institutions specified as such in the Pricing
Supplement or, if none, four (or, if the Relevant Financial Centre is Helsinki, five) major banks selected by the Calculation Agent in the interbank market (or, if appropriate, money, swap or over-the-counter index options market) that is most
closely connected with the Benchmark which, if EURIBOR is the relevant Benchmark, shall be the Euro-zone. 
  
 “Relevant Currency” means the currency specified in the Pricing Supplement or, if none is specified, the currency in which the Notes are denominated. 
  
 “Relevant Financial Centre” means, with respect to any Floating Rate to be
determined on an Interest Determination Date, the financial centre as may be specified as such in the Pricing Supplement or, if none is so specified, the financial centre with which the relevant Benchmark is most closely connected (which, in the
case of EURIBOR, shall be the Euro-zone) or, if none is so connected, London. 
  

 56 

 “Relevant Rate” means the Benchmark for a Representative Amount of the Relevant Currency for a period (if
applicable or appropriate to the Benchmark) equal to the Specified Duration commencing on the Effective Date. 
  
 “Relevant Time” means, with respect to any Interest Determination Date, if the Relevant Currency is not euro, the local time in the Relevant Financial Centre specified in the Pricing Supplement or, if none
is specified, the local time in the Relevant Financial Centre at which it is customary to determine bid and offered rates in respect of deposits in the Relevant Currency in the interbank market in the Relevant Financial Centre and for this purpose
“local time” means, with respect to the Euro-zone as a Relevant Financial Centre, Central European Time. 
  
 “Representative Amount” means, with respect to any Floating Rate to be determined on an Interest Determination Date, the amount specified as such in the Pricing
Supplement or, if none is specified, an amount that is representative for a single transaction in the relevant market at the time. 
  
 “Specified Duration” means, with respect to any Floating Rate to be determined on an Interest Determination Date, the duration specified in the Pricing
Supplement or, if none is specified, a period of time equal to the relative Interest Accrual Period, ignoring any adjustment pursuant to Condition 5(b). 
  

“TARGET System” means the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET) system or any successor thereto. 
  

	(j)	 	Calculation Agent and Reference Banks 

  
 The Issuer shall procure that there shall at all times be four Reference Banks (or such other number as may be required) with offices in the Relevant Financial Centre and
one or more Calculation Agents if provision is made for them in the Pricing Supplement and for so long as any Note is outstanding (as defined in the Trust Deed). If any Reference Bank (acting through its relevant office) is unable or unwilling to
continue to act as a Reference Bank, then the Issuer shall (with the prior approval of the Trustee) appoint another Reference Bank with an office in the Relevant Financial Centre to act as such in its place. Where more than one Calculation Agent is
appointed in respect of the Notes, references in these Conditions to the Calculation Agent shall be construed as each Calculation Agent performing its respective duties under the Conditions. If the Calculation Agent is unable or unwilling to act as
such or if the Calculation Agent fails duly to establish the Interest Rate for an Interest Period or Interest Accrual Period or to calculate any Interest Amount, Instalment Amount or the Redemption Amount or to comply with any other requirement, the
Issuer shall (with the prior approval of the Trustee) appoint a leading bank or investment banking firm engaged in the interbank market (or, if appropriate, money, swap or over-the-counter index options market) that is most closely connected with
the calculation or determination to be made by the Calculation Agent (acting through its principal London office or any other office actively involved in such market) to act as such in its place. The Calculation Agent may not resign its duties
without a successor having been appointed as aforesaid. 
  

	(k)	 	Certificates to be Final 

  
 All certificates, communications, opinions, determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions
of this Condition 5, whether by the Calculation Agent or the Trustee, shall (in the absence of wilful default, bad faith or manifest error) be binding on the Issuer, the Calculation Agent, the Trustee, the other Paying Agents and all Noteholders,
Receiptholders and Couponholders and (in the absence as aforesaid) no liability to the Issuer, the Noteholders, the Receiptholders or the Couponholders shall attach to the Calculation Agent or the Trustee in connection with the exercise or
non-exercise by them of their powers, duties and discretions pursuant to such provisions. 
  

	6.	 	Redemption, Purchase and Options 

  

	(a)	 	Redemption by Instalments and Final Redemption 

  
 (i) Unless previously redeemed, purchased and cancelled as provided in this Condition 6 or the relevant Instalment Date (being one of the dates so specified hereon) is
extended pursuant to the Issuer’s or any Noteholder’s option in accordance with Condition 6(d) or 6(e), 

  

 57 

 
each Note that provides for Instalment Dates and Instalment Amounts shall be partially redeemed on each Instalment Date at the related Instalment Amount
specified in the Pricing Supplement. The outstanding principal amount of each such Note shall be reduced by the Instalment Amount (or, if such Instalment Amount is calculated by reference to a proportion of the principal amount of such Note, such
proportion) for all purposes with effect from the related Instalment Date, unless payment of the Instalment Amount is improperly withheld or refused on presentation of the related Receipt, in which case, such amount shall remain outstanding until
the Relevant Date relating to such Instalment Amount. 
  
 (ii) Unless previously
redeemed, purchased and cancelled as provided below or its maturity is extended pursuant to the Issuer’s or any Noteholder’s option in accordance with Condition 6(d) or 6(e), each Note shall be finally redeemed on the
Maturity Date specified in the Pricing Supplement at its Redemption Amount (which, unless otherwise provided in the Pricing Supplement, is its principal amount) or, in the case of a Note falling within paragraph(i) above, its final Instalment
Amount. 
  

	(b)	 	Early Redemption of Zero Coupon Notes 

  
 (i) The Redemption Amount payable in respect of any Note that does not bear interest prior to the Maturity Date, the Redemption Amount of which is not linked to an index
and/or a formula, upon redemption of such Note pursuant to Condition 6(c) or 6(f) or upon it becoming due and payable as provided in Condition 10 shall be the Amortised Face Amount (calculated as provided below) of such Note.

  
 (ii) Subject to the provisions of sub-paragraph (iii) below, the Amortised
Face Amount of any such Note shall be the scheduled Redemption Amount of such Note on the Maturity Date discounted at a rate per annum (expressed as a percentage) equal to the Amortisation Yield (which, if none is shown in the Pricing Supplement,
shall be such rate as would produce an Amortised Face Amount equal to the issue price of the Notes if they were discounted back to their issue price on the Issue Date) compounded annually. Where such calculation is to be made for a period of less
than one year, it shall be made on the basis of the Day Count Fraction shown hereon. 
  
 (iii) If the Redemption Amount payable in respect of any such Note upon its redemption pursuant to Condition 6(c) or 6(f) or upon it becoming due and payable as provided in Condition 10 is not paid when due, the Redemption
Amount due and payable in respect of such Note shall be the Amortised Face Amount of such Note as defined in sub-paragraph (ii) above, except that such sub-paragraph shall have effect as though the reference therein to the date on which the Note
becomes due and payable were replaced by a reference to the Relevant Date. The calculation of the Amortised Face Amount in accordance with this sub-paragraph shall continue to be made (as well after as before judgment) until the Relevant Date,
unless the Relevant Date falls on or after the Maturity Date, in which case the amount due and payable shall be the scheduled Redemption Amount of such Note on the Maturity Date together with any interest that may accrue in accordance with Condition
5(d). 
  

	(c)	 	Redemption for Taxation Reasons 

  
 If, as a result of any amendment to or change in the laws or regulations of the United Kingdom or of any political subdivision thereof or any authority therein or thereof
having power to tax or any change in the official or generally accepted interpretation or application of such laws or regulations which becomes effective on or after the date of the agreement to issue the first Tranche of the Notes, the Issuer has
or will become obliged to pay any additional amounts as described in Condition 8 (and such amendment or change has been evidenced by the delivery by the Issuer to the Trustee (who shall accept such certificate and opinion as sufficient evidence
thereof) of (i) a certificate signed by two directors of the Issuer on behalf of the Issuer stating that such amendment or change has occurred (irrespective of whether such amendment or change is then effective), describing the facts leading thereto
and stating that such requirement cannot be avoided by the Issuer, taking reasonable measures available to it and (ii) an opinion of independent legal advisers of recognised standing to the effect that such amendment or change has occurred
(irrespective of whether such amendment or change is then effective)), the Issuer may (having given not less than 30 nor more than 90 days notice to the Trustee and to the holders in accordance with Condition 16) redeem all, but not some only, of
the Notes (other than Notes in respect of which the Issuer shall have given a notice of redemption pursuant to Condition 6(d) or in respect of 

  

 58 

 
which a Noteholder shall have given a Put Event Notice in accordance with Condition 6(f), in each case prior to any notice being given under this
Condition 6(c)) at their Redemption Amount, together with accrued interest to the date fixed for such redemption, provided that no such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer
would be required to pay such additional amounts were a payment in respect of the Notes then due. 
  

	(d)	 	Redemption at the Option of the Issuer and Exercise of Issuer’s Options 

  
 If so provided in the Pricing Supplement, the Issuer may, on giving irrevocable notice to the Noteholders falling within the Issuer’s
Option Period, redeem, or exercise the Issuer’s option in relation to, all or, if so provided, some of the Notes (other than Notes in respect of which the Issuer shall have given a notice of redemption pursuant to Condition 6(c) or in
respect of which a Noteholder shall have given a Put Event Notice in accordance with Condition 6(f), in each case prior to any notice being given under this Condition 6(d)) in the principal amount or integral multiples thereof and on
the date or dates so provided. Any such redemption of Notes shall be at their Redemption Amount together with interest accrued to the date fixed for redemption. 
  

All Notes in respect of which any such notice is given shall be redeemed, or the Issuer’s option shall be exercised, on the date specified in such notice in
accordance with this Condition. 
  
 In the case of a partial redemption or a
partial exercise of the Issuer’s option, the notice to Noteholders shall also contain the certificate numbers of the Notes to be redeemed or in respect of which such option has been exercised, which shall have been drawn in such place as the
Trustee may approve and in such manner as it deems appropriate, subject to compliance with any applicable laws and stock exchange or other relevant authority requirements. So long as the Notes are listed on the Official List and are admitted to
trading on the London Stock Exchange’s market for listed securities or any other stock exchange and the rules of the relevant stock exchange or other relevant authority so require, the Issuer shall, once in each year in which there has been a
partial redemption of the Notes, cause to be published in a leading newspaper of general circulation in the United Kingdom or as specified by such other stock exchange or other relevant authority, a notice specifying the aggregate principal amount
of Notes outstanding and a list of the Notes drawn for redemption but not surrendered. 
  

	(e)	 	Redemption at the Option of Noteholders and Exercise of Noteholders’ Options 

  
 If so provided in the Pricing Supplement, the Issuer shall, at the option of the holder of any such Note, redeem such Note on the date or
dates so provided at its Redemption Amount together with interest accrued to the date fixed for redemption. 
  
 To exercise such option or any other Noteholders’ option that may be set out hereon the holder must deposit (in the case of Bearer Notes) such Note (together with all unmatured Receipts and Coupons and
unexchanged Talons) with any Paying Agent or (in the case of Registered Notes) the Certificate representing such Note(s) with the Registrar or any Transfer Agent at its specified office, together with a duly completed option exercise notice
(“Exercise Notice” which expression shall include any Put Notice (as defined below)) in the form obtainable from any Paying Agent, the Registrar or any Transfer Agent (as applicable) within the Noteholder’s Option Period (which
expression shall, in the case of the exercise of the option referred to in Condition 6(f) below, mean the Put Period (as defined below)). No Note or Certificate so deposited and option exercised may be withdrawn without the prior consent of
the Issuer, except that such Note or Certificate will be returned to the relevant Noteholder by the Paying Agent, the Registrar or Transfer Agent with which it has been deposited if, prior to the due date for its redemption or the exercise of the
option, the Note becomes immediately due and payable or if upon due presentation payment of the redemption moneys is not made or exercise of the option is denied. 
  

	(f)	 	Redemption at the Option of the Noteholders on a Put Event 

  
 If this Condition 6(f) is specified in the Pricing Supplement as being applicable, then if, at any time while any of the Notes remains outstanding, a Restructuring
Event occurs and prior to the commencement of or during the Restructuring Period an Independent Financial Adviser shall have certified in writing to the Trustee that such Restructuring Event will not be or is 

  

 59 

 
not, in its opinion, materially prejudicial to the interests of the Noteholders, the following provisions of this Condition 6(f) shall cease to have
any further effect in relation to such Restructuring Event. 
  
 If, at any time
while any of the Notes remains outstanding, a Restructuring Event occurs and (subject to this Condition 6(f)) within the Restructuring Period, either: 
  

(i) if at the time such Restructuring Event occurs there are Rated Securities, a Rating Downgrade in respect of such Restructuring Event also occurs; or 
  
 (ii) if at such time there are no Rated Securities, a Negative Rating Event also occurs; and

  
 an Independent Financial Adviser shall have certified in writing to the
Trustee that such Restructuring Event is, in its opinion, materially prejudicial to the interests of the Noteholders (a “Negative Certification”), then, unless at any time the Issuer shall have given a notice under Condition 6(c) or
6(d), the holder of each Note will, upon the giving of a Put Event Notice (as defined below), have the option (the “Put Option”) to require the Issuer to redeem or, at the option of the Issuer, purchase (or procure the purchase of)
that Note on the Put Date (as defined below), at its principal amount together with (or, where purchased, together with an amount equal to) interest (if any) accrued to (but excluding) the Put Date. 
  
 An event shall be deemed not to be a Restructuring Event if, notwithstanding the occurrence
of a Rating Downgrade or a Negative Rating Event, the rating assigned to the Rated Securities by any Rating Agency is subsequently increased to, or, as the case may be, there is assigned to the Notes or other unsecured and unsubordinated debt of the
Issuer or a Relevant Subsidiary (or of any Subsidiary of the Issuer which is guaranteed on an unsecured and unsubordinated basis by the Issuer or a Relevant Subsidiary) having an initial maturity of five years or more by any Rating Agency, an
investment grade rating (BBB-/Baa3 or their respective equivalents for the time being) or better prior to any Negative Certification being issued. 
  
 Any certification by an Independent Financial Adviser as aforesaid as to whether or not, in its opinion any Restructuring Event is materially prejudicial to the interests
of the Noteholders shall, in the absence of manifest error, be conclusive and binding on the Trustee, the Issuer and the Noteholders. 
  
 Promptly upon, and in any event within 14 days after, the Issuer becoming aware that a Put Event has occurred, the Issuer shall, and at any time upon the Trustee becoming
similarly so aware the Trustee may, and if so requested by the holders of at least one-quarter in principal amount of the Notes then outstanding shall, give notice (a “Put Event Notice”) to the Noteholders in accordance with Condition 16
specifying the nature of the Put Event and the procedure for exercising the Put Option. 
  
 To exercise the Put Option, the holder of a Note must deposit (in the case of a Bearer Note) such Note with any Paying Agent or (in the case of Registered Notes) the Certificate representing such Note(s) with the Registrar or any Transfer
Agent at its specified office, on a day which is a Business Day in the City of London and in the place of such specified office falling within the period (the “Put Period”) of 45 days after that on which a Put Event Notice is given,
accompanied by a duly completed and signed notice of exercise in the form (for the time being current) obtainable from any specified office of any Paying Agent, the Registrar or any Transfer Agent (as applicable) (a “Put Notice”) and in
which the holder may specify a bank account to which payment is to be made under this Condition 6. Where any Bearer Note is delivered without all Coupons relating to it which mature after the day (the “Put Date”) being the fifteenth day
after the date of expiry of the Put Period, the exercise of the Put Option in respect of such Note shall be subject to the provision of such indemnity as the Issuer may reasonably require. The Paying Agent to which such Note and Put Notice or, as
the case may be, the Registrar or Transfer Agent to which the Certificate and Put Notice are delivered shall issue to the Noteholder concerned a non-transferable receipt in respect of the Note so delivered. Payment in respect of any Note so
delivered shall be made, if the holder duly specifies in the Put Notice an account with a bank to which payment is to be made, on the Put Date by transfer to that bank account and, in every other case, on or after the Put Date in each case against
presentation and surrender or (as the case may be) endorsement of such receipt at any specified office of any Paying Agent. A Put Notice, once given, shall be irrevocable. For the purposes of Conditions 9, 10, 11, 12, 14, 16 and 17 and for certain
other purposes specified in the Trust Deed, receipts issued pursuant to this Condition 6(f) shall be 

  

 60 

 
treated as if they were Notes. The Issuer shall redeem or, at the option of the Issuer, purchase (or procure the purchase of) the relevant Note on the
applicable Put Date unless previously redeemed or purchased. 
  
 A Rating
Downgrade or a Negative Rating Event or a non-investment grade rating shall be deemed not to have occurred as a result or in respect of a Restructuring Event if the Rating Agency making the relevant reduction in rating or, where applicable,
declining to assign a rating of at least investment grade as provided in this Condition 6(f) does not announce or publicly confirm or inform the Trustee in writing at its request that the reduction or, where applicable, declining to assign a
rating of at least investment grade was the result, in whole or in part, of any event or circumstance comprised in or arising as a result of the applicable Restructuring Event. 
  
 The Trust Deed provides that the Trustee is under no obligation to ascertain whether a Restructuring Event, a Negative Rating 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 the Trust Deed to the contrary the Trustee may assume that no Restructuring
Event, Negative Rating Event or such other event has occurred. The Trust Deed also provides that in determining whether or not a Restructuring Event has occurred, the Trustee may rely solely on an opinion given in a certificate signed by two
directors of the Issuer. 
  
 In these Conditions: 
  
 “Balancing and Settlement Code” means the Balancing and Settlement Code, as
provided for in the NGC Transmission Licence; and references to the Balancing and Settlement Code include the Balancing and Settlement Code as given contractual force and effect by the Framework Agreement; 
  
 “Business Day” means, in relation to any place, a day on which commercial banks and
foreign exchange markets generally settle payments in that place; 
  
 “Capital and Reserves” means the aggregate of: 
  
 (i) the
amount paid up or credited as paid up on the share capital of the Issuer; and 
  
 (ii) the total of the reserves of the Group, including any share premium account, revaluation reserve, capital redemption reserve, merger reserve and the balance on the profit and loss account, but excluding amounts attributable to minority
interests, all as shown in the then latest audited consolidated balance sheet of the Group prepared in accordance with generally accepted accounting principles in the United Kingdom, but adjusted as may be necessary in respect of any variation in
the paid up share capital or share premium account of the Issuer since the date of that balance sheet and further adjusted as may be necessary to reflect any change since the date of that balance sheet in the Subsidiary Undertakings comprising the
Group and/or as the Directors of the Issuer may consider appropriate. A report by the Directors of the Issuer as to the amount of Capital and Reserves at any given time shall, in the absence of manifest error, be conclusive and binding on the
Trustee and the Noteholders; 
  
 “Distribution Licence” means the
electricity distribution licence granted or treated as granted to SP Distribution plc (SC189125) under Section 6(1)(c) of the Electricity Act as modified and in force from time to time; 
  
 “Electricity Act” means the Electricity Act 1989 as amended or re-enacted from time to time and all subordinate legislation made
pursuant thereto; 
  
 “Excluded Subsidiary” means any Subsidiary of the
Issuer: 
  
 (a) which is a single purpose company whose principal assets and
business are constituted by the ownership, acquisition, development and/or operation of an asset; 
  
 (b) none of whose indebtedness for borrowed money in respect of the financing of such ownership, acquisition, development and/or operation of an asset is subject to any recourse whatsoever to any member of the Group
(other than such Subsidiary or another Excluded Subsidiary) in respect of the repayment thereof, except as expressly referred to in sub-paragraph (ii) of the definition of Project Finance Indebtedness; and 
  

 61 

 (c) which has been designated as such by the Issuer by written notice to the Trustee, provided that the Issuer may give
written notice to the Trustee at any time that any Excluded Subsidiary is no longer an Excluded Subsidiary, whereupon it shall cease to be an Excluded Subsidiary; 
  
 “Framework Agreement” shall have the meaning ascribed to BSC Framework Agreement in the NGC Transmission Licence; 
  
 “Gas and Electricity Markets Authority” means the authority so named and
established under Section 1 of the Utilities Act 2000; 
  
 “Generation
Licence” means the electricity generation licence granted or treated as granted to Scottish Power Generation plc (SC189124) under Section 6(1)(a) of the Electricity Act as modified and in force from time to time; 
  
 [“Group” means Scottish Power plc and its Subsidiary Undertakings and “member
of the Group” shall be construed accordingly;] 
  
 *[“Group” means
Scottish Power UK plc and its Subsidiary Undertakings and “member of the Group” shall be construed accordingly;] 
  
 “indebtedness for borrowed money” means any present or future indebtedness (whether being principal, premium, interest or other amounts) for or in respect of
(i) money borrowed, (ii) liabilities under or in respect of any acceptance or acceptance credit, or (iii) any notes, bonds, debentures, debenture stock, loan stock or other securities offered, issued or distributed whether by way of public offer,
private placing, acquisition consideration or otherwise and whether issued for cash or in whole or in part or for a consideration other than cash; 
  
 “Independent Financial Adviser” means a financial adviser appointed by the Issuer and approved by the Trustee (such approval not to be unreasonably withheld or
delayed) or, if the Issuer shall not have appointed such an adviser within 21 days after becoming aware of the occurrence of a Restructuring Event and the Trustee is indemnified to its satisfaction against the costs of such adviser, appointed by the
Trustee following consultation with the Issuer; 
  
 “Manweb Licence”
means the electricity distribution licence granted or treated as granted to SP Manweb plc (2366937) under Section 6(1)(c) of the Electricity Act as modified and in force from time to time; 
  
 “Negative Pledge Company” means each of SP Distribution plc (SC189125), SP
Transmission plc (SC189126) and Scottish Power Generation plc (SC189124); 
  
 A
“Negative Rating Event” shall be deemed to have occurred if (A) the Issuer does not, either prior to or not later than 14 days after the date of a Negative Certification in respect of the relevant Restructuring Event, seek, and thereupon
use all reasonable endeavours to obtain, a rating of the Notes or any other unsecured and unsubordinated debt of the Issuer or a Relevant Subsidiary (or of any Subsidiary of the Issuer which is guaranteed on an unsecured and unsubordinated basis by
the Issuer or a Relevant Subsidiary) having an initial maturity of five years or more from a Rating Agency or (B) if it does so seek and use such endeavours, it is unable, as a result of such Restructuring Event, to obtain such a rating of at least
investment grade (BBB-/Baa3, or their respective equivalents for the time being); 
  
 “NGC Transmission Licence” means the licence granted to The National Grid Company plc under Section 6(1)(b) of the Electricity Act; 
  
 [“Principal Subsidiary” at any time shall mean: 
  
 (A) any Relevant Subsidiary; or 
  
 (B) any Subsidiary of the Issuer (not being an Excluded Subsidiary or any other Subsidiary of the Issuer 90% in principal amount of whose indebtedness for borrowed money is Project Finance Indebtedness): 

 
 (i) whose (a) profits on ordinary activities before tax or (b) net assets represent 20%
or more of the consolidated profits on ordinary activities before tax of the Group or consolidated net assets of the Group respectively, in each case as calculated by reference to the then latest audited financial statements of such Subsidiary and
the then latest audited consolidated financial statements of the Group; or 
  

 62 

 (ii) 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, whereupon the transferor Subsidiary shall immediately cease to be a Principal Subsidiary and the transferee Subsidiary shall cease to be a Principal Subsidiary under the
provisions of this sub-paragraph (ii) (but without prejudice to the provisions of sub-paragraph (i) above), upon publication of its next audited financial statements, 
  
 all as more fully defined in the Trust Deed. 
  
 A report by the Directors of the Issuer 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 the Trustee and the Noteholders;] 
  
 *[“Principal Subsidiary” means any one of SP Distribution plc (SC189125), SP Transmission plc (SC189126) or SP Manweb plc (2366937);] 
  
 “Project Finance Indebtedness” means any present or future indebtedness incurred to
finance the ownership, acquisition, development and/or operation of an asset, whether or not an asset of a member of the Group: 
  
 (i) which is incurred by an Excluded Subsidiary; or 
  
 (ii) in respect of which the person or persons to whom any such indebtedness is or may be owed by the relevant borrower (whether or not a member of the Group) has or have
no recourse whatsoever to any member of the Group (other than an Excluded Subsidiary) for the repayment thereof other than: 
  
 (A) recourse for amounts limited to the cash flow or net cash flow (other than historic cash flow or historic net cash flow) from such asset; and/or 
  
 (B) recourse for the purpose only of enabling amounts to be claimed in respect of such
indebtedness in an enforcement of any encumbrance given by such borrower over such asset or the income, cash flow or other proceeds, deriving therefrom (or given by any shareholder or the like in the borrower over its shares or the like in the
capital of the borrower) to secure such indebtedness, provided that (aa) the extent of such recourse is limited solely to the amount of any recoveries made on any such enforcement, and (bb) such person or persons is/are not entitled, by virtue of
any right or claim arising out of or in connection with such indebtedness, to commence proceedings for the winding up or dissolution of any member of the Group (other than an Excluded Subsidiary) or to appoint or procure the appointment of any
receiver, trustee or similar person or officer in respect of any member of the Group (other than an Excluded Subsidiary) or any of its assets (save for the assets the subject of such encumbrance); and/or 
  
 (C) recourse under any form of assurance, undertaking or support, which recourse is limited
to a claim for damages (other than liquidated damages and damages required to be calculated in a specified way) for breach of an obligation (not being a payment obligation or an obligation to procure payment by another or an indemnity in respect
thereof or any obligation to comply or to procure compliance by another with any financial ratios or other tests of financial condition) by any member of the Group (other than an Excluded Subsidiary); 
  
 A “Put Event” occurs on the date of the last to occur of (aa) a Restructuring
Event, (bb) either a Rating Downgrade or, as the case may be, a Negative Rating Event and (cc) the relevant Negative Certification; 
  
 “Rated Securities” means the Notes, if at any time and for so long as they have a rating from a Rating Agency, and otherwise any other unsecured and
unsubordinated debt of the Issuer or a Relevant Subsidiary (or of any Subsidiary of the Issuer which is guaranteed on an unsecured and unsubordinated basis by the Issuer or a Relevant Subsidiary) having an initial maturity of five years or more
which is rated by a Rating Agency; 
  
 “Rating Agency” means Standard
& Poor’s Rating Services, a division of the McGraw-Hill Companies, Inc. or any of its Subsidiary Undertakings and their successors or Moody’s Investors Service, Inc. or any of its Subsidiary Undertakings and their successors or Fitch
Ratings Ltd. or any of its Subsidiary Undertakings and their successors or any rating agency 

  

 63 

 
substituted for any of them (or any permitted substitute of them) by the Issuer from time to time with the prior written approval of the Trustee (such
approval not to be unreasonably withheld or delayed); 
  
 A “Rating
Downgrade” shall be deemed to have occurred in respect of a Restructuring Event if the then current rating assigned to the Rated Securities by any Rating Agency (whether provided by a Rating Agency at the invitation of the Issuer or by its own
volition) is withdrawn or reduced from an investment grade rating (BBB-/Baa3, or their respective equivalents for the time being, or better) to a non-investment grade rating (BB+/Ba1, or their respective equivalents for the time being, or worse) or,
if the Rating Agency shall then have already rated the Rated Securities below investment grade (as described above), the rating is lowered one full rating category (from BB+/Ba1 to BB/Ba2 or such similar lowering); 
  
 “Relevant Indebtedness” means any present or future indebtedness (whether being
principal, premium, interest or other amounts) in the form of or represented by notes, bonds, debentures, debenture stock, loan stock or other securities, whether issued for cash or in whole or in part for a consideration other than cash, and which,
with the agreement of the person issuing the same, are quoted, listed or ordinarily dealt in on any stock exchange or recognised over-the-counter or other securities market, but shall in any event not include Project Finance Indebtedness;

  
 [“Relevant Licence” means the Generation Licence, the Transmission
Licence, the Distribution Licence, the Manweb Licence or the Supply Licence or, in any such case, and from time to time, any other licence or licences relating to the transmission, distribution or supply of electricity in the United Kingdom granted
to the Issuer and/or any Relevant Subsidiary as contemplated pursuant to paragraph (A) of “Restructuring Event” below and “Relevant Licence” shall be construed accordingly;] 
  
 *[“Relevant Licence” means the Distribution Licence, the Transmission Licence or
the Manweb Licence or, in any such case, and from time to time, any other licence or licences relating to the distribution or transmission of electricity in the United Kingdom granted to the Issuer and/or any Relevant Subsidiary as contemplated
pursuant to paragraph (A) of “Restructuring Event” below and “Relevant Licence” shall be construed accordingly;] 
  
 [“Relevant Subsidiary” means a member of the Group that holds a Relevant Licence;] 
  
 *[“Relevant Subsidiary” means any one of SP Distribution plc (SC189125), SP Transmission plc (SC189126) or SP Manweb plc (2366937)
or such other Subsidiary Undertaking of Scottish Power UK plc as may be agreed between Scottish Power UK plc and the Trustee from time to time;] 
  
 “Restructuring Event” means the occurrence of any one or more of the following events: 
  
 (A) (aa) the Secretary of State gives the Issuer or any Relevant Subsidiary written notice of revocation of any Relevant Licence and
provided that the giving of notice pursuant to paragraph 3 of Part I of any Relevant Licence shall not be deemed to constitute the revocation of the Relevant Licence; or 
  
 (bb) the Issuer or any Relevant Subsidiary agrees in writing with the Secretary of State to any revocation or surrender of any Relevant
Licence; or 
  
 (cc) any legislation (whether primary or subordinate) is enacted
terminating or revoking any Relevant Licence, 
  
 except in any such case in
circumstances where a licence or licences on substantially not less favourable terms is or are granted to the Issuer or one or more Relevant Subsidiaries or Subsidiary Undertakings (not being an Excluded Subsidiary) of the Issuer; 
  
 (B) any modification (other than a modification which is of a formal, minor or technical
nature) is made to the terms and conditions of any Relevant Licence on or after the date of the relevant Pricing Supplement, unless two directors of the Issuer have certified in good faith to the Trustee that the modified terms and conditions are
not materially less favourable to the business of the Group and to the business of the member of the Group holding the Relevant Licence; or 
  

 64 

 (C) (aa) the Balancing and Settlement Code is terminated and not replaced by one or more agreements, commercial
arrangements or open market mechanisms or frameworks, in each case on terms which two directors of the Issuer certify in good faith to the Trustee to be not materially less favourable to the business of the Group or to the business of the Relevant
Subsidiary or Relevant Subsidiaries party to the Balancing and Settlement Code; or 
  
 (bb) any Relevant Subsidiary is given an Expulsion Notice (as defined in the Balancing and Settlement Code) pursuant to Section A.5.2.4 (“Expulsion”) of the Balancing and Settlement Code requiring it to cease to be a party
thereto; or 
  
 (cc) where there shall have occurred a Default (as defined in the
Balancing and Settlement Code) under Section H.3.1.1 (“Default”) of the Balancing and Settlement Code in relation to any Relevant Subsidiary and such default remains unremedied or unwaived; or 
  
 (dd) any Relevant Subsidiary ceases to be a party to the Balancing and Settlement Code for
any reason (other than pursuant to (bb) and (cc) above) except where a licence or licences is or are granted to one or more Subsidiaries as contemplated by sub-paragraph (A) above and at or about the same time all rights and obligations of the
Relevant Subsidiary pursuant to the Balancing and Settlement Code which are attributable to such licence(s) are assigned and transferred to such Subsidiary and/or Subsidiaries in such manner as the Trustee may approve (such approval not to be
unreasonably withheld or delayed) or such Subsidiary or Subsidiaries enters or enter into one or more agreements, commercial arrangements or open market mechanisms or frameworks in relation to such licence(s) which the directors of the Issuer
certify to be not materially less favourable to the business of the Group; or 
  
 (D) any legislation (whether primary or subordinate) is enacted which removes, qualifies or amends (other than an amendment which is of a formal, minor or technical nature) the functions or duties of the Secretary of State and/or the Gas
and Electricity Markets Authority under the Electricity Act unless two directors of the Issuer have certified in good faith to the Trustee that such removal, qualification or amendment is unlikely to have a materially adverse effect on the financial
condition of the Group or any Relevant Subsidiary; 
  
 “Restructuring
Period” means: 
  
 (A) if at any time a Restructuring Event occurs there are
Rated Securities, the period of 90 days starting from and including the day on which that Restructuring Event occurs; or 
  
 (B) if at the time a Restructuring Event occurs there are no Rated Securities, the period starting from and including the day on which that Restructuring Event occurs and
ending on the day 90 days following the later of (aa) the date on which the Issuer shall seek to obtain a rating as contemplated in the definition of Negative Rating Event prior to the expiry of the 14 days referred to in that definition and (bb)
the date on which a Negative Certification shall have been given to the Issuer in respect of that Restructuring Event; 
  
 “Secretary of State” means the Secretary of State for Trade and Industry (or any successor) or, as the case may be, the Secretary of State for Scotland (or any
successor); 
  
 “Subsidiary” means a subsidiary within the meaning of
Section 736 of the Companies Act 1985; 
  
 “Subsidiary Undertaking”
shall have the meaning given to it by Section 258 of the Companies Act 1985 (but, in relation to the Issuer, shall exclude any undertaking (as defined in the Companies Act 1985) whose accounts are not included in the then latest published audited
consolidated accounts of the Issuer, or (in the case of an undertaking which has first become a subsidiary undertaking of a member of the Group since the date as at which any such audited accounts were prepared) would not have been so included or
consolidated if it had become so on or before that date); 
  
 “Supply
Licence” means the electricity supply licence granted or treated as granted to ScottishPower Energy Retail Limited (SC190287) under Section 6(1)(d) of the Electricity Act as modified and in force from time to time; and 
  
 “Transmission Licence” means the electricity transmission licence granted or
treated as granted to SP Transmission plc (SC189126) under Section 6(1)(b) of the Electricity Act as modified and in force from time to time. 
  
 Any reference to an obligation being guaranteed shall include a reference to an indemnity being given in respect of the obligation. 
  

 65 

	(g)	 	Purchases 

  
 The Issuer and any of its Subsidiaries may to the extent permitted by applicable law, at any time purchase Notes (provided that all unmatured Receipts and Coupons and unexchanged Talons relating thereto are attached
thereto or surrendered therewith) in the open market or otherwise at any price. 
  

	(h)	 	Cancellation 

  
 All Notes purchased by or on behalf of the Issuer or any of its Subsidiaries shall be surrendered for cancellation, in the case of Bearer Notes, by surrendering each such Note together with all unmatured Receipts and
Coupons and all unexchanged Talons to the Issuing and Paying Agent and, in the case of Registered Notes, by surrendering the Certificate representing such Notes to the Registrar and, in each case, if so surrendered, shall, together with all Notes
redeemed by the Issuer, be cancelled forthwith (together with all unmatured Receipts and Coupons and unexchanged Talons attached thereto or surrendered therewith). Any Notes so surrendered for cancellation may not be reissued or resold. 

 

	7.	 	Payments and Talons 

  

	(a)	 	Bearer Notes 

  
 Payments of principal and interest in respect of Bearer Notes shall, subject as mentioned below, be made against presentation and surrender of the relevant Receipts (in the case of payments of Instalment Amounts other
than on the due date for redemption and provided that the Receipt is presented for payment together with its relative Note), Notes (in the case of all other payments of principal and, in the case of interest, as specified in Condition
7(f)(vi)) or Coupons (in the case of interest, save as specified in Condition 7(f)(ii)), as the case may be, at the specified office of any Paying Agent outside the United States by a cheque payable in the currency in which such
payment is due drawn on, or, at the option of the holder, by transfer to an account denominated in that currency with, a bank in the principal financial centre for that currency or, in the case of payment in euro, at the option of the holder, by
transfer to, or cheque drawn on, a euro account (or any other account to which euro may be transferred) specified by the holder. 
  

	(b)	 	Registered Notes 

  
 (i) Payments of principal (which for the purposes of this Condition 7(b) shall include final Instalment Amounts but not other Instalment Amounts) in respect of Registered Notes shall be made against
presentation and surrender of the relevant Certificates at the specified office of any of the Transfer Agents or of the Registrar and in the manner provided in paragraph (ii) below. 
  
 (ii) Interest (which for the purpose of this Condition 7(b) shall include all Instalment Amounts other than final Instalment Amounts)
on Registered Notes shall be paid to the person shown on the Register at the close of business on the fifteenth day before the due date for payment thereof (the “Record Date”). Payments of interest on each Registered Note shall be made in
the currency in which such payments are due by cheque drawn on a bank in the principal financial centre of the country of the currency concerned and mailed to the holder (or to the first named of joint holders) of such Note at its address appearing
in the Register. Upon application by the holder to the specified office of the Registrar or any Transfer Agent before the Record Date and subject as provided in Condition 7(a) above, such payment of interest may be made by transfer to an
account in the relevant currency maintained by the payee with a bank in the principal financial centre of the country of that currency or, in the case of payment in euro, by transfer to a euro account (or any other account to which euro may be
transferred) specified by the holder. 
  

	(c)	 	Payments in the United States 

  
 Notwithstanding the foregoing, if any Bearer Notes are denominated in US dollars, payments in respect thereof may be made at the specified office of any Paying Agent in
New York City in the same manner as aforesaid if (i) the Issuer shall have appointed Paying Agents with specified offices outside the United States with the reasonable expectation that such Paying Agents would be able to make payment of the amounts
on the Notes in the manner provided above when due, (ii) payment in full of such amounts at all such offices is illegal or 

  

 66 

 
effectively precluded by exchange controls or other similar restrictions on payment or receipt of such amounts and (iii) such payment is then permitted by
United States law, without involving, in the opinion of the Issuer, any adverse tax consequence to the Issuer. 
  

	(d)	 	Payments Subject to Fiscal Laws 

  
 All payments are subject in all cases to any applicable fiscal or other laws, regulations and directives, but without prejudice to the provisions of Condition 8. No
commission or expenses shall be charged to the Noteholders or Couponholders in respect of such payments. 
  

	(e)	 	Appointment of Agents 

  
 The Issuing and Paying Agent, the Paying Agents, the Registrar and the Transfer Agents initially appointed by the Issuer and their respective specified offices are listed
below. The Issuing and Paying Agent, the Paying Agents, the Registrar, the Transfer Agents and the Calculation Agent act solely as agents of the Issuer and do not assume any obligation or relationship of agency or trust for or with any Noteholder or
Couponholder. The Issuer reserves the right at any time with the approval of the Trustee to vary or terminate the appointment of the Issuing and Paying Agent, any other Paying Agent, the Registrar, any Transfer Agent or the Calculation Agent and to
appoint additional or other Paying Agents or Transfer Agents, provided that the Issuer shall at all times maintain (i) an Issuing and Paying Agent, (ii) a Registrar in relation to Registered Notes, (iii) a Transfer Agent in relation to Registered
Notes, (iv) one or more Calculation Agent(s) where the Conditions so require, (v) Paying Agents having specified offices in at least two major European cities (including London, so long as the Notes are listed on the Official List and admitted to
trading on the London Stock Exchange’s market for listed securities), (vi) such other agents as may be required by any other stock exchange on which the Notes may be listed, in each case, as approved by the Trustee and (vii) if any European
Union Directive on the taxation of savings implementing the conclusions of the ECOFIN Council meeting of 26th-27th November 2000 or any law implementing or complying with, or introduced in order to conform to, such Directive is introduced, a Paying
Agent and a Transfer Agent with a specified office in a European Union member state that will not be obliged to withhold or deduct tax pursuant to such Directive or law if there is any such European Union member state. 
  
 In addition, the Issuer shall forthwith appoint a Paying Agent in New York City in respect of
any Bearer Notes denominated in US dollars in the circumstances described in paragraph (c) above. 
  
 Notice of any such change or any change of any specified office shall promptly be given to the Noteholders. 
  

	(f)	 	Unmatured Coupons and Receipts and Unexchanged Talons 

  
 (i) Unless the Pricing Supplement provides that the relative Coupons are to become void upon the due date for redemption of those Notes, Bearer Notes should be
surrendered for payment together with all unmatured Coupons (if any) appertaining thereto, failing which an amount equal to the face value of each missing unmatured Coupon (or, in the case of payment not being made in full, that proportion of the
amount of such missing unmatured Coupon that the sum of principal so paid bears to the total principal due) shall be deducted from the Redemption Amount due for payment. Any amount so deducted shall be paid in the manner mentioned above against
surrender of such missing Coupon within a period of 10 years from the Relevant Date for the payment of such principal (whether or not such Coupon has become void pursuant to Condition 9). 
  
 (ii) If the Pricing Supplement so provides, upon the due date for redemption of any Bearer Note, unmatured Coupons relating to such Note
(whether or not attached) shall become void and no payment shall be made in respect of them. 
  
 (iii) Upon the due date for redemption of any Bearer Note, any unexchanged Talon relating to such Note (whether or not attached) shall become void and no Coupon shall be delivered in respect of such Talon. 

 
 (iv) Upon the due date for redemption of any Bearer Note that is redeemable in
instalments, all Receipts relating to such Note having an Instalment Date falling on or after such due date (whether or not attached) shall become void and no payment shall be made in respect of them. 
  

 67 

 (v) Where any Bearer Note that provides that the relative unmatured Coupons are to become void upon the due date for
redemption of those Notes is presented for redemption without all unmatured Coupons and any unexchanged Talon relating to it, and where any Bearer Note is presented for redemption without all unmatured Coupons and any unexchanged Talon relating to
it, redemption shall be made only against the provision of such indemnity as the Issuer may require. 
  
 (vi) If the due date for redemption of any Note is not a due date for payment of interest, interest accrued from the preceding due date for payment of interest or the Interest Commencement Date, as the case may be,
shall only be payable against presentation (and surrender if appropriate) of the relevant Bearer Note or Certificate representing it, as the case may be. Interest accrued on a Note that only bears interest after its Maturity Date shall be payable on
redemption of such Note against presentation of the relevant Note or Certificate representing it, as the case may be. 
  

	(g)	 	Talons 

  
 On or after the Interest Payment Date for the final Coupon forming part of a Coupon sheet issued in respect of any Bearer Note, the Talon forming part of such Coupon sheet may be surrendered at the specified office of
the Issuing and Paying Agent in exchange for a further Coupon sheet (and if necessary another Talon for a further Coupon sheet) (but excluding any Coupons that may have become void pursuant to Condition 9). 
  

	(h)	 	Non-Business Days 

  
 If any date for payment in respect of any Note, Receipt or Coupon is not a business day, the holder shall not be entitled to payment until the next following business day nor to any interest or other sum in respect of
such postponed payment. In this paragraph, “business day” means a day (other than a Saturday or a Sunday) on which banks and foreign exchange markets are open for business in the relevant place of presentation, in such jurisdictions as
shall be specified as “Business Day Jurisdictions” hereon and: 
  
 (i)
(in the case of a payment in a currency other than euro) where payment is to be made by transfer to an account maintained with a bank in the relevant currency, on which foreign exchange transactions may be carried on in the relevant currency in the
principal financial centre of the country of such currency or 
  
 (ii) (in the
case of a payment in euro) which is a TARGET Business Day. 
  

	8.	 	Taxation 

  
 All payments of principal and interest by or on behalf of the Issuer in respect of the Notes, the Receipts and the Coupons shall be made free and clear of, and without withholding or deduction for, any taxes, duties,
assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed by or within the United Kingdom or any authority therein or thereof having power to tax, unless such withholding or deduction is required by law.
In the event of such a withholding or deduction required by law, the Issuer shall pay such additional amounts as shall result in receipt by the Noteholders and Couponholders of such amounts as would have been received by them had no such withholding
or deduction been required, except that no such additional amounts shall be payable with respect to any Note, Receipt or Coupon: 
  
 (a) to, or to a third party on behalf of, a holder who is liable to such taxes, duties, assessments or governmental charges in respect of such Note, Receipt or Coupon by
reason of his having some connection with the United Kingdom other than the mere holding of the Note, Receipt or Coupon; or 
  
 (b) presented (or in respect of which the Certificate representing it is presented) for payment more than 30 days after the Relevant Date except to the extent that the
holder of it would have been entitled to such additional amounts on presenting it for payment on the thirtieth day; or 
  

 68 

 (c) where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to
any European Union Directive on the taxation of savings implementing the conclusions of the ECOFIN Council meeting of 26th-27th November 2000 or any law implementing or complying with, or introduced in order to conform to, such Directive; or

  
 (d) presented for payment by or on behalf of a Noteholder or a Couponholder
who would have been able to avoid such withholding or deduction by presenting the relevant Note, Receipt or Coupon to another Paying Agent in a Member State of the European Union. 
  
 As used in these Conditions, “Relevant Date” in respect of any Note, Receipt or Coupon means the date on which payment in respect
of it first becomes due or (if any amount of the money payable is improperly withheld or refused) the date on which payment in full of the amount outstanding is made or (if earlier) the date seven days after that on which notice is duly given to the
Noteholders that, upon further presentation of the Note (or relative Certificate), Receipt or Coupon being made in accordance with the Conditions, such payment will be made, provided that payment is in fact made upon such presentation. References in
these Conditions to (i) “principal” shall be deemed to include any premium payable in respect of the Notes, all Instalment Amounts, Redemption Amounts, Amortised Face Amounts and all other amounts in the nature of principal payable
pursuant to Condition 6 or any amendment or supplement to it, (ii) “interest” shall be deemed to include all Interest Amounts and all other amounts payable pursuant to Condition 5 or any amendment or supplement to it and (iii)
“principal” and/or “interest” shall be deemed to include any additional amounts that may be payable under this Condition or any undertaking given in addition to or in substitution for it under the Trust Deed. 
  

	9.	 	Prescription 

  
 Claims against the Issuer for payment in respect of the Notes, Receipts and Coupons (which, for this purpose, shall not include Talons) shall be prescribed and become void unless made within 10 years (in the case of
principal) or five years (in the case of interest) from the appropriate Relevant Date in respect of them. 
  

	10.	 	Events of Default 

  
 The Trustee at its discretion may, and if so requested in writing by the holders of at least one-quarter in principal amount of the Notes then outstanding or if so directed by an Extraordinary Resolution of the
Noteholders shall, subject to being indemnified to its satisfaction, (but, in the case of the happening of any of the events mentioned in sub-paragraphs (b), (c), (e), (f), (g) and (h) below, only if the Trustee shall have certified in writing to
the Issuer that such event is, in its opinion, materially prejudicial to the interests of the Noteholders), give notice to the Issuer that the Notes are, and they shall accordingly thereby forthwith become, immediately due and repayable at their
principal amount together with accrued interest (as provided in the Trust Deed) if any of the following events (each an “Event of Default”) shall have occurred (unless such Event of Default has been remedied to the satisfaction of the
Trustee): 
  
 (a) if default is made for a period of 14 days or more in the
payment of any principal or the purchase price due in respect of the Notes or any of them pursuant to Condition 6 or 21 days or more in the payment of any interest due in respect of the Notes or any of them; or 
  
 (b) if the Issuer fails to perform or observe any of its other obligations under the Notes or
the Trust Deed and (except where the Trustee shall have certified to the Issuer in writing that it considers such failure to be incapable of remedy in which case no such notice or continuation as is hereinafter mentioned will be required) such
failure continues for the period of 60 days (or such longer period as the Trustee may in its absolute discretion permit) next following the service by the Trustee of notice on the Issuer requiring the same to be remedied; or 
  
 (c) if (i) any other indebtedness for borrowed money of the Issuer or any Principal
Subsidiary becomes due and repayable prior to its stated maturity by reason of an event of default or (ii) any such indebtedness for borrowed money is not paid when due or, as the case may be, within any applicable grace period (as originally
provided) or (iii) the Issuer or any Principal Subsidiary fails to pay when due (or, as the case may be, within any originally applicable 

  

 69 

 
grace period) any amount payable by it under any present or future guarantee for, or indemnity in respect of, any indebtedness for borrowed money of any
person or (iv) any security given by the Issuer or any Principal Subsidiary for any indebtedness for borrowed money of any person or for any guarantee or indemnity of indebtedness for borrowed money of any person becomes enforceable by reason of
default in relation thereto and steps are taken to enforce such security, save in any such case where there is a bona fide dispute as to whether the relevant indebtedness for borrowed money or any such guarantee or indemnity as aforesaid shall be
due and payable, provided that the aggregate amount of the relevant indebtedness for borrowed money in respect of which any one or more of the events mentioned above in this sub-paragraph (c) has or have occurred equals or exceeds whichever is the
greater of £20,000,000 or its equivalent in other currencies (as determined by the Trustee) or 2% of Capital and Reserves, and for the purposes of this sub-paragraph (c), “indebtedness for borrowed money” shall exclude Project
Finance Indebtedness; or 
  
 (d) if any order shall be made by any competent court
or any resolution shall be passed for the winding up or dissolution of the Issuer, save for the purpose of amalgamation, merger, consolidation, reorganisation, reconstruction or other similar arrangement on terms previously approved in writing by
the Trustee (such approval not to be unreasonably withheld or delayed having regard to the interests of the Noteholders) or by an Extraordinary Resolution of the Noteholders; or 
  
 (e) if any order shall be made by any competent court or any resolution shall be passed for the winding up or dissolution of a Principal
Subsidiary, save for the purposes of amalgamation, merger, consolidation, reorganisation, reconstruction or other similar arrangement (A) not involving or arising out of the insolvency of such Principal Subsidiary and under which all the surplus
assets of such Principal Subsidiary are transferred to the Issuer or any of its other Subsidiaries (other than an Excluded Subsidiary) or (B) the terms of which have previously been approved in writing by the Trustee (such approval not to be
unreasonably withheld or delayed having regard to the interests of Noteholders) or by an Extraordinary Resolution of the Noteholders; or 
  
 (f) if the Issuer or any Principal Subsidiary shall cease to carry on the whole or substantially the whole of its business (which, for the avoidance of doubt, is, in the
case of the Issuer, its operation as a holding company), save: 
  
 (i) in each
case for the purpose of amalgamation, merger, consolidation, reorganisation, reconstruction or other similar arrangement (A) not involving or arising out of the insolvency of the Issuer or such Principal Subsidiary and under which all or
substantially all of its assets are transferred to another member or members of the Group (other than an Excluded Subsidiary) or to a transferee or transferees which is or are, or immediately upon such transfer become(s), a member or members of the
Group (other than an Excluded Subsidiary), or (B) the terms of which have previously been approved in writing by the Trustee or by an Extraordinary Resolution of the Noteholders; or 
  
 [(ii) in each case where there is a disposal of Scottish Power UK plc or a Principal Subsidiary or the business of any Principal Subsidiary
under which all or substantially all of its assets are transferred to a third party or parties (whether associates or not) for full consideration, by the Issuer or a member or members of the Group (other than an Excluded Subsidiary) on an arm’s
length basis.] 
  
 *[(ii) in each case where there is a disposal of a Principal
Subsidiary or the business of any Principal Subsidiary under which all or substantially all of its assets are transferred to a third party or parties (whether associates or not) for full consideration, by the Issuer or a member or members of the
Group (other than an Excluded Subsidiary) on an arm’s length basis,] 
  
 provided that if neither the Issuer nor any Subsidiary Undertaking holds a Relevant Licence, the Issuer shall be deemed to have ceased to carry on the whole or substantially the whole of its business (and neither of exceptions (i)(A) or
(ii) shall apply); or 
  
 (g) if the Issuer or any Principal Subsidiary shall
suspend or announce its intention to suspend payment of its debts generally or shall be declared or adjudicated by a competent court to be unable, or shall admit in writing its inability, to pay its debts generally (within the meaning of Section
123(1) or (2) of the Insolvency Act 1986) as they fall due, or shall be 

  

 70 

 
adjudicated or found insolvent by a competent court or shall enter into any composition or other similar arrangement with its creditors generally under
Section 1 of the Insolvency Act 1986; or 
  
 (h) if a receiver, administrative
receiver, administrator or other similar official shall be appointed in relation to the Issuer or any Principal Subsidiary or in relation to the whole or a substantial part of the undertaking or assets of any of them or a distress, execution or
other process shall be levied or enforced upon or sued out against, or any encumbrancer shall take possession of, the whole or a substantial part of the assets of any of them and in any of the foregoing cases it or he shall not be paid out or
discharged within 90 days (or such longer period as the Trustee may in its absolute discretion permit). 
  
 For the purposes of sub-paragraph (g) above, Section 123(1)(a) of the Insolvency Act 1986 shall have effect as if for “£750” there was substituted “£500,000”. Neither the Issuer nor any
Principal Subsidiary shall be deemed to be unable to pay its debts for the purposes of sub-paragraph (g) above if any such demand as is mentioned in Section 123(1)(a) of the Insolvency Act 1986 is being contested in good faith by the Issuer or the
relevant Principal Subsidiary with recourse to all appropriate measures and procedures or if any such demand is satisfied before the expiration of such period as may be stated in any notice given by the Trustee under this Condition. 
  

	11.	 	Meetings of Noteholders, Modification, Waiver and Substitution 

  

	(a)	 	Meetings of Noteholders 

  
 The Trust Deed contains provisions for convening meetings of Noteholders to consider matters affecting their interests, including the modification of any of the terms and
conditions of the Notes or any provisions of the Trust Deed. Any such modification may be made if sanctioned by an Extraordinary Resolution (which as provided in the Trust Deed may be passed by written resolution by or on behalf of the holders of
not less than 75 per cent. in principal amount of the Notes, as well as at a meeting of Noteholders). The quorum for any meeting convened to consider an Extraordinary Resolution will be one or more persons holding or representing a clear majority in
principal amount of the Notes for the time being outstanding, or at any adjourned meeting, one or more persons being or representing Noteholders whatever the principal amount of the Notes held or represented, unless the business of such meeting
includes consideration of proposals, inter alia (i) to postpone the maturity or redemption of the Notes, any Instalment Date or any date for payment of any interest or Interest Amount on the Notes, (ii) to reduce or cancel the principal amount of,
or any Instalment Amount of, or any premium payable on redemption of, the Notes, (iii) to reduce the rate or rates of interest in respect of the Notes or to vary the method or basis of calculating the rate or rates or amount of interest or the basis
for calculating any Interest Amount in respect of the Notes, (iv) if a Minimum and/or a Maximum Interest Rate, Instalment Amount or Redemption Amount is shown hereon, to reduce any such Minimum and/or Maximum, (v) to vary any method of, or basis
for, calculating the Redemption Amount, including the method of calculating the Amortised Face Amount, (vi) to vary the currency or currencies of payment or denomination of the Notes, (vii) to take any steps that as specified hereon may only be
taken following approval by an Extraordinary Resolution to which the special quorum provisions apply, or (viii) to modify the provisions concerning the quorum required at any meeting of Noteholders or the majority required to pass the Extraordinary
Resolution, in which case the necessary quorum shall be one or more persons holding or representing not less than two-thirds, or at any adjourned meeting not less than one-third, in principal amount of the Notes for the time being outstanding. Any
Extraordinary Resolution duly passed shall be binding on Noteholders (whether or not they were present at the meeting at which such resolution was passed) and on all Couponholders. 
  
 These Conditions may be amended, modified or varied in relation to any Series of Notes by the terms of the relevant Pricing Supplement in
relation to such Series. 
  

	(b)	 	Modification of the Trust Deed 

  
 The Trustee may agree, without the consent of the Noteholders or Couponholders, to (i) any modification of any of the provisions of the Trust Deed, the Notes or the
Coupons that is of a formal, minor or technical nature or is made to correct a manifest error, and (ii) any other modification (except as mentioned in the Trust Deed), and any waiver or authorisation of any 

  

 71 

 
breach or proposed breach, of any of the provisions of the Trust Deed that is in the opinion of the Trustee not materially prejudicial to the interests of
the Noteholders. Any such modification, authorisation or waiver shall be binding on the Noteholders and the Couponholders and, if the Trustee so requires, such modification shall be notified to the Noteholders as soon as practicable. 
  

	(c)	 	Substitution 

  
 The Trust Deed contains provisions permitting the Trustee to agree, subject to such amendment of the Trust Deed and such other conditions as the Trustee may require, but without the consent of the Noteholders or the
Couponholders, to the substitution of any other company in place of the Issuer, or of any previous substituted company, as principal debtor under the Trust Deed and the Notes. In the case of such a substitution the Trustee may agree, without the
consent of the Noteholders or the Couponholders, to a change of the law governing the Notes, the Receipts, the Coupons, the Talons and/or the Trust Deed provided that such change would not in the opinion of the Trustee be materially prejudicial to
the interests of the Noteholders. 
  

	(d)	 	Entitlement of the Trustee 

  
 In connection with the exercise of its functions (including but not limited to those referred to in this Condition) the Trustee shall have regard to the interests of the
Noteholders as a class and shall not have regard to the consequences of such exercise for individual Noteholders or Couponholders and the Trustee shall not be entitled to require, nor shall any Noteholder or Couponholder be entitled to claim, from
the Issuer any indemnification or payment in respect of any tax consequence of any such exercise upon individual Noteholders or Couponholders. 
  

	12.	 	Replacement of Notes, Certificates, Receipts, Coupons and Talons 

  
 If a Note, Certificate, Receipt, Coupon or Talon is lost, stolen, mutilated, defaced or destroyed, it may be replaced, subject to applicable laws, regulations and stock
exchange or other applicable authority regulations, at the specified office of the Issuing and Paying Agent (in the case of Bearer Notes, Receipts, Coupons or Talons) and of the Registrar (in the case of Certificates) or such other Paying Agent or
Transfer Agent, as the case may be, as may from time to time be designated by the Issuer for the purpose and notice of whose designation is given to Noteholders, in each case on payment by the claimant of the fees and costs incurred in connection
therewith and on such terms as to evidence, security and indemnity (which may provide, inter alia, that if the allegedly lost, stolen or destroyed Note, Certificate, Receipt, Coupon or Talon is subsequently presented for payment or, as the case may
be, for exchange for further Coupons, there shall be paid to the Issuer on demand the amount payable by the Issuer in respect of such Notes, Certificates, Receipts, Coupons or further Coupons) and otherwise as the Issuer may reasonably require.
Mutilated or defaced Notes, Certificates, Receipts, Coupons or Talons must be surrendered before replacements will be issued. 
  

	13.	 	Further Issues 

  
 The Issuer may from time to time without the consent of the Noteholders or Couponholders create and issue further securities either having the same terms and conditions as the Notes in all respects (or in all respects
except for the first payment of interest on them) and so that such further issue shall be consolidated and form a single series with the outstanding securities of any series (including the Notes) or upon such terms as the Issuer may determine at the
time of their issue. References in these Conditions to the Notes include (unless the context requires otherwise) any other securities issued pursuant to this Condition and forming a single series with the Notes. Any further securities forming a
single series with the outstanding securities of any series (including the Notes) constituted by the Trust Deed or any deed supplemental to it shall, and any other securities may (with the consent of the Trustee), be constituted by the Trust Deed.
The Trust Deed contains provisions for convening a single meeting of the Noteholders and the holders of securities of other series where the Trustee so decides. 
  

 72 

	14.	 	Enforcement 

  
 At any time after the Notes become due and payable, the Trustee may, at its discretion and without further notice, institute such proceedings against the Issuer as it may think fit to enforce the terms of the Trust
Deed, but it need not take any such proceedings unless (a) it shall have been so directed by an Extraordinary Resolution or so requested in writing by holders of at least one-fifth in principal amount of the Notes outstanding, and (b) it shall have
been indemnified to its satisfaction. No Noteholder, Receiptholder or Couponholder may proceed directly against the Issuer unless the Trustee, having become bound so to proceed fails to do so within a reasonable time and such failure is continuing.

  

	15.	 	Indemnification of the Trustee 

  
 The Trust Deed contains provisions for the indemnification of the Trustee and for its relief from responsibility. The Trustee is entitled to enter into business
transactions with the Issuer and any entity related to the Issuer without accounting for any profit. 
  

	16.	 	Notices 

  
 Notices to the holders of Registered Notes shall be mailed to them at their respective addresses in the Register and deemed to have been given on the fourth weekday (being a day other than a Saturday or a Sunday)
after the date of mailing. Notices to the holders of Bearer Notes shall be valid if published in a daily newspaper of general circulation in the United Kingdom (which is expected to be the Financial Times). The Issuer shall also ensure that notices
are duly published in a manner which complies with the rules and regulations of any other stock exchange on which the Notes are, for the time being, listed or other applicable authority to which it is subject. Any such notice shall be deemed to have
been given on the date of such publication or, if published more than once or on different dates, on the first date on which publication is made, as provided above. 
  
 Couponholders shall be deemed for all purposes to have notice of the contents of any notice given to the holders of Bearer Notes in
accordance with this Condition. 
  

	17.	 	Contracts (Rights of Third Parties) Act 1999 

  
 No person shall have any right to enforce any term or condition of the Notes, the Receipts, the Coupons or the Talons under the Contracts (Rights of Third Parties) Act
1999. 
  

	18.	 	Governing Law and Jurisdiction 

  

	(a)	 	Governing Law 

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

	(b)	 	Jurisdiction 

  
 The courts of England are to have jurisdiction to settle any disputes that may arise out of or in connection with any Notes, Receipts, Coupons or Talons and accordingly any legal action or proceedings arising out of
or in connection with any Notes, Receipts, Coupons or Talons (“Proceedings”) may be brought in such courts. The Issuer has in the Trust Deed irrevocably submitted to the jurisdiction of such courts. 
  

	(c)	 	Service of Process 

  
 [The Issuer, in accordance with the Trust Deed, will appoint its London office, whose address is 5th Floor, 30 Cannon Street, London EC4M 6XH to act as its agent in England to receive, for it and on its behalf,
service of process in any Proceedings in England.] 
  
 * [The Issuer, in
accordance with the Trust Deed, will procure the appointment of Scottish Power plc’s London office, whose address is 5th Floor, 30 Cannon Street, London EC4M 6XH to act as its agent in England to receive, for it and on its behalf, service of
process in any Proceedings in England.] 
  

 73 

 SCHEDULE 2 
 Part D 
 Form of Coupon 
  
 On the front: 
  
 SCOTTISH POWER plc 
  
 SCOTTISH POWER UK plc 
  
 DEBT ISSUANCE
PROGRAMME 
  
 Series No. [•] 

 
 [Title of issue] 
  
 Coupon for [[set out amount due, if known]/the amount] due on [the Interest Payment Date
falling in]* [•], [•]. 
  
 [Coupon relating to Note in the principal
amount of [•]]** 
  
 This Coupon is payable to bearer (subject to the
Conditions endorsed on the Note to which this Coupon relates, which shall be binding upon the holder of this Coupon whether or not it is for the time being attached to such Note) at the specified offices of the Issuing and Paying Agent and the
Paying Agents set out on the reverse hereof (or any other Issuing and Paying Agent or further or other Paying Agents or specified offices duly appointed or nominated and notified to the Noteholders). 
  
 [If the Note to which this Coupon relates shall have become due and payable before the
maturity date of this Coupon, this Coupon shall become void and no payment shall be made in respect of it.]*** 
  
 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. 
  
 [SCOTTISH POWER plc/SCOTTISH POWER UK plc] 
  
 By: 
  

	 [Cp. No.]
	 	 [Denomination]
	 	 [ISIN]
	 	 [Series]
	 	 [Certif. No.]

  

 74 

 On the back: 
  
 CITIBANK, N.A. 
 5 Carmelite Street 
 London 
 EC4Y 0PA 
  
 PAYING AGENT 
 CITIBANK AG, FRANKFURT 
 Reuterweg 16 
 60323 Frankfurt am Main 

 [*Only necessary where Interest Payment Dates are subject to adjustment in accordance with a Business Day Convention otherwise the particular Interest Payment Date should
be specified.] 
 [**Only required for Coupons relating to Floating Rate or Variable Coupon Amount Notes that are issued in more than one denomination.]

 [***Delete if Coupons are not to become void upon early redemption of Note.] 
  

 75 

 SCHEDULE 2 
 Part E 
 Form of Talon 
  
 On the front: 
  
 SCOTTISH POWER plc 
  
 SCOTTISH POWER UK plc 
  
 DEBT ISSUANCE
PROGRAMME 
  
 Series No. [•] 

 
 [Title of issue] 
  
 Talon for further Coupons falling due on [the Interest Payment Dates falling in]*[•]
[•]. 
  
 [Talon relating to Note in the principal amount of [•]]**

  
 After all the Coupons relating to the Note to which this Talon relates have
matured, further Coupons (including if appropriate a Talon for further Coupons) shall be issued at the specified office of the Issuing and Paying Agent set out on the reverse hereof (or any other Issuing and Paying Agent or specified office duly
appointed or nominated and notified to the Noteholders) upon production and surrender of this Talon. 
  
 If the Note to which this Talon relates shall have become due and payable before the original due date for exchange of this Talon, this Talon shall become void and no exchange shall be made in respect of it.

  
 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. 
  
 [SCOTTISH POWER plc/SCOTTISH POWER UK plc] 
  
 By: 
  

	 [Talon. No.]
	 	 [ISIN]
	 	 [Series]
	 	 [Certif. No.]

  
 On
the back: 
  
 ISSUING AND PAYING AGENT

 CITIBANK, N.A. 
 5 Carmelite Street 
 London 
 EC4Y 0PA 
  

 76 

 PAYING AGENT 
 CITIBANK AG, FRANKFURT 
 Reuterweg 16 
 60323 Frankfurt am Main 

 [* The maturity dates of the relevant Coupons should be set out if known, otherwise reference should be made to the months and years in
which the Interest Payment Dates fall due.] 
 [** Only required where the Series comprises Notes of more than one denomination.] 
  

 77 

 SCHEDULE 2 
 Part F 
 Form of Receipt 
  
 SCOTTISH POWER plc 
  
 SCOTTISH POWER UK plc 
  
 DEBT ISSUANCE PROGRAMME 
  
 Series No. [•] 
  
 Receipt for the sum of
[•] being the instalment of principal payable in accordance with the Terms and Conditions endorsed on the Note to which this Receipt relates (the “Conditions”) on [•]. 
  
 This Receipt is issued subject to and in accordance with the Conditions which shall be
binding upon the holder of this Receipt (whether or not it is for the time being attached to such Note) and is payable at the specified office of any of the Paying Agents set out on the reverse of the Note to which this Receipt relates (and/or any
other or further Paying Agents and/or specified offices as may from time to time be duly appointed and notified to the Noteholders). 
  
 This Receipt must be presented for payment together with the Note to which it relates. If the Note to which this Receipt appertains shall have become due and payable on
or before the maturity date of this Receipt, this Receipt shall become void and no payment shall be made in respect of it. The Issuer shall have no obligation in respect of this Receipt if it is presented without the Note to which it relates.

  
 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. 
  
 [SCOTTISH POWER plc/SCOTTISH POWER UK plc] 
  
 By: 
  

 78 

 SCHEDULE 3 
 Provisions for Meetings of Noteholders 
  
 Interpretation 
  

	1	 	In this Schedule: 

  

	1.1	 	references to a meeting are to a meeting of Noteholders of a single series of Notes and include, unless the context otherwise requires, any adjournment

  

	1.2	 	references to “Notes” and “Noteholders” are only to the Notes of the Series in respect of which a meeting has been, or is to be, called, and to the
holders of these Notes, respectively 

  

	1.3	 	“agent” means a holder of a voting certificate or a proxy for, or representative of, a Noteholder 

  

	1.4	 	“block voting instruction” means an instruction issued in accordance with paragraphs 8 to 14 

  

	1.5	 	“Extraordinary Resolution” means a resolution passed at a meeting duly convened and held in accordance with this Trust Deed by a majority of at least 75 per
cent. of the votes cast. A resolution in writing signed by or (to the satisfaction of the Trustee) on behalf of the holders of not less than 75 per cent. in principal amount of the Notes who for the time being are entitled to receive notice of a
meeting in accordance with the provisions herein contained shall for all purposes be as valid and effectual as, and shall take effect as, an Extraordinary Resolution passed at a meeting of such Noteholders duly convened and held in accordance with
the provisions herein contained. Such resolution in writing may be contained in one document or in several documents in like form each signed by or on behalf of one or more of the relevant Noteholders 

  

	1.6	 	“voting certificate” means a certificate issued in accordance with paragraphs 5, 6, 7 and 14 and 

  

	1.7	 	references to persons representing a proportion of the Notes are to Noteholders or agents holding or representing in the aggregate at least that proportion in principal
amount of the Notes for the time being outstanding. 

  
 Powers of meetings 
  

	2	 	A meeting shall, subject to the Conditions and without prejudice to any powers conferred on other persons by this Trust Deed, have power by Extraordinary Resolution:

  

	2.1	 	to sanction any proposal by the Relevant Issuer or the Trustee for any modification, abrogation, variation or compromise of, or arrangement in respect of, the rights of the
Noteholders and/or the Couponholders against the Relevant Issuer, whether or not those rights arise under this Trust Deed 

  

	2.2	 	to sanction the exchange or substitution for the Notes of, or the conversion of the Notes into, shares, bonds or other obligations or securities of the Relevant Issuer or any
other entity 

  

	2.3	 	to assent to any modification of this Trust Deed, the Notes, the Receipts, the Talons or the Coupons proposed by the Relevant Issuer or the Trustee 

 

 79 

	2.4	 	to authorise anyone to concur in and do anything necessary to carry out and give effect to an Extraordinary Resolution 

  

	2.5	 	to give any authority, direction or sanction required to be given by Extraordinary Resolution 

  

	2.6	 	to appoint any persons (whether Noteholders or not) as a committee or committees to represent the Noteholders’ interests and to confer on them any powers or discretions
which the Noteholders could themselves exercise by Extraordinary Resolution 

  

	2.7	 	to approve a proposed new Trustee and to remove a Trustee 

  

	2.8	 	to approve the substitution of any entity for the Relevant Issuer (or any previous substitute) as principal debtor or guarantor under this Trust Deed and

  

	2.9	 	to discharge or exonerate the Trustee from any liability in respect of any act or omission for which it may become responsible under this Trust Deed, the Notes, the Receipts,
the Talons or the Coupons 

  
 provided that the special quorum
provisions in paragraph 19 shall apply to any Extraordinary Resolution (a “special quorum resolution”) for the purpose of sub-paragraph 2.2 or 2.8, any of the proposals listed in Condition 11(a) or any amendment to this proviso save
where such Extraordinary Resolution is passed as a resolution in writing. 
  
 Convening a meeting 
  

	3	 	The Relevant Issuer or the Trustee may at any time convene a meeting. If it receives a written request by Noteholders holding at least 10 per cent in principal amount of the
Notes of any Series for the time being outstanding and is indemnified to its satisfaction against all costs and expenses, the Trustee shall convene a meeting of the Noteholders of that Series. Every meeting shall be held at a time and place approved
by the Trustee. 

  

	4	 	At least 21 days’ notice (exclusive of the day on which the notice is given and of the day of the meeting) shall be given to the Noteholders. A copy of the notice shall
be given by the party convening the meeting to the other parties. The notice shall specify the day, time and place of meeting and, unless the Trustee otherwise agrees, the nature of the resolutions to be proposed and shall explain how Noteholders
may appoint proxies or representatives, obtain voting certificates and use block voting instructions and the details of the time limits applicable. 

  
 Arrangements for voting 
  

	5	 	If a holder of a Bearer Note wishes to obtain a voting certificate in respect of it for a meeting, he must deposit such Bearer Note for that purpose at least 48 hours before
the time fixed for the meeting with a Paying Agent or to the order of a Paying Agent with a bank or other depositary nominated by the Paying Agent for the purpose. The Paying Agent shall then issue a voting certificate in respect of it.

  

	6	 	A voting certificate shall: 

  

	6.1	 	be a document in the English language 

  

	6.2	 	be dated 

  

	6.3	 	specify the meeting concerned and the serial numbers of the Notes deposited and 

  

	6.4	 	entitle, and state that it entitles, its bearer to attend and vote at that meeting in respect of those Notes. 

  

 80 

	7	 	Once a Paying Agent has issued a voting certificate for a meeting in respect of a Note, it shall not release the Note until either: 

  

	7.1	 	the meeting has been concluded or 

  

	7.2	 	the voting certificate has been surrendered to the Paying Agent. 

  

	8	 	If a holder of a Bearer Note wishes the votes attributable to it to be included in a block voting instruction for a meeting, then, at least 48 hours before the time fixed for
the meeting, (i) he must deposit the Note for that purpose with a Paying Agent or to the order of a Paying Agent with a bank or other depositary nominated by the Paying Agent for the purpose and (ii) he or a duly authorised person on his behalf must
direct the Paying Agent how those votes are to be cast. The Paying Agent shall issue a block voting instruction in respect of the votes attributable to all Notes so deposited. 

  

	9	 	A block voting instruction shall: 

  

	9.1	 	be a document in the English language 

  

	9.2	 	be dated 

  

	9.3	 	specify the meeting concerned 

  

	9.4	 	list the total number and serial numbers of the Notes deposited, distinguishing with regard to each resolution between those voting for and those voting against it

  

	9.5	 	certify that such list is in accordance with Notes deposited and directions received as provided in paragraphs 8, 11 and 14 and 

  

	9.6	 	appoint a named person (a “proxy”) to vote at that meeting in respect of those Notes and in accordance with that list. 

  
 A proxy need not be a Noteholder. 
  

	10	 	Once a Paying Agent has issued a block voting instruction for a meeting in respect of the votes attributable to any Notes: 

  

	10.1	 	it shall not release the Notes, except as provided in paragraph 11, until the meeting has been concluded and 

  

	10.2	 	the directions to which it gives effect may not be revoked or altered during the 48 hours before the time fixed for the meeting. 

  

	11	 	If the receipt for a Note deposited with a Paying Agent in accordance with paragraph 8 is surrendered to the Paying Agent at least 48 hours before the time fixed for the
meeting, the Paying Agent shall release the Note and exclude the votes attributable to it from the block voting instruction. 

  

	12	 	Each block voting instruction shall be deposited at least 24 hours before the time fixed for the meeting at such place as the Trustee shall designate or approve, and in
default it shall not be valid unless the chairman of the meeting decides otherwise before the meeting proceeds to business. If the Trustee requires, a notarially certified copy of each block voting instruction shall be produced by the proxy at the
meeting but the Trustee need not investigate or be concerned with the validity of the proxy’s appointment. 

  

	13	 	 A vote cast in accordance with a block voting instruction shall be valid even if it or any of the Noteholders’ instructions pursuant to which it was
executed has previously been 

  

 81 

	  	 	revoked or amended, unless written intimation of such revocation or amendment is received from the relevant Paying Agent by the Relevant Issuer or the Trustee at its registered
office or by the chairman of the meeting in each case at least 24 hours before the time fixed for the meeting. 

  

	14	 	No Note may be deposited with or to the order of a Paying Agent at the same time for the purposes of both paragraph 5 and paragraph 8 for the same meeting.

  

	15.1	 	A holder of a Registered Note may, by an instrument in writing in the form available from the specified office of a Transfer Agent in the English language executed by or on
behalf of the holder and delivered to the Transfer Agent at least 24 hours before the time fixed for a meeting, appoint any person (a “proxy”) to act on his behalf in connection with that meeting. A proxy need not be a Noteholder.

  

	15.2	 	A corporation which holds a Registered Note may by delivering to a Transfer Agent at least 24 hours before the time fixed for a meeting a certified copy of a resolution of
its directors or other governing body (with, if it is not in English, a certified translation into English) authorise any person to act as its representative (a “representative”) in connection with that meeting.

  
 Chairman 
  

	16	 	The chairman of a meeting shall be such person as the Trustee may nominate in writing, but if no such nomination is made or if the person nominated is not present within 15
minutes after the time fixed for the meeting the Noteholders or agents present shall choose one of their number to be chairman, failing which the Relevant Issuer may appoint a chairman. The chairman need not be a Noteholder or agent. The chairman of
an adjourned meeting need not be the same person as the chairman of the original meeting. 

  
 Attendance 
  

	17	 	The following may attend and speak at a meeting: 

  

	17.1	 	Noteholders and agents 

  

	17.2	 	the chairman 

  

	17.3	 	the Relevant Issuer and the Trustee (through their respective representatives) and their respective financial and legal advisers 

  

	17.4	 	the Dealers and their advisers. 

  
 No-one else may attend or speak. 
  
 Quorum and Adjournment 
  

	18	 	No business (except choosing a chairman) shall be transacted at a meeting unless a quorum is present at the commencement of business. If a quorum is not present within 15
minutes from the time initially fixed for the meeting, it shall, if convened on the requisition of Noteholders or if the Relevant Issuer and the Trustee agree, be dissolved. In any other case it shall be adjourned until such date, not less than 14
nor more than 42 days later, and time and place as the chairman may decide. If a quorum is not present within 15 minutes from the time fixed for a meeting so adjourned, the meeting shall be dissolved. 

  

	19	 	One or more Noteholders or agents present in person shall be a quorum: 

  

 82 

	19.1	 	in the cases marked “No minimum proportion” in the table below, whatever the proportion of the Notes which they represent 

  

	19.2	 	in any other case, only if they represent the proportion of the Notes shown by the table below. 

  

	 COLUMN 1

	  	 COLUMN 2

	  	 COLUMN 3

			
	Purpose of meeting	  	 Any meeting except one referred to in column 3
 _____________________
 Required proportion
	  	 Meeting previously adjourned through want of a quorum _____________________
 Required proportion

			
	 To pass a special quorum
 resolution
	  	2/3	  	1/3
			
	 To pass any other
 Extraordinary
Resolution
	  	A clear majority	  	No minimum proportion
			
	Any other purpose	  	10 per cent	  	 No minimum proportion

  

	20	 	The chairman may with the consent of (and shall if directed by) a meeting adjourn the meeting from time to time and from place to place. Only business which could have been
transacted at the original meeting may be transacted at a meeting adjourned in accordance with this paragraph or paragraph 18. 

  

	21	 	At least 10 days’ notice of a meeting adjourned through want of a quorum shall be given in the same manner as for an original meeting and that notice shall state the
quorum required at the adjourned meeting. No notice need, however, otherwise be given of an adjourned meeting. 

  
 Voting 
  

	22	 	Each question submitted to a meeting shall be decided by a show of hands unless a poll is (before, or on the declaration of the result of, the show of hands) demanded by the
chairman, the Relevant Issuer, the Trustee or one or more persons representing 2 per cent of the Notes. 

  

	23	 	Unless a poll is demanded a declaration by the chairman that a resolution has or has not been passed shall be conclusive evidence of the fact without proof of the number or
proportion of the votes cast in favour of or against it. 

  

	24	 	If a poll is demanded, it shall be taken in such manner and (subject as provided below) either at once or after such adjournment as the chairman directs. The result of the
poll shall be deemed to be the resolution of the meeting at which it was demanded as at the date it was taken. A demand for a poll shall not prevent the meeting continuing for the transaction of business other than the question on which it has been
demanded. 

  

	25	 	A poll demanded on the election of a chairman or on a question of adjournment shall be taken at once. 

  

 83 

	26	 	On a show of hands every person who is present in person and who produces a Bearer Note, a Certificate of which he is the registered holder or a voting certificate or is a
proxy or representative has one vote. On a poll every such person has one vote in respect of each principal amount equal to the minimum denomination of such Series of Notes so produced or represented by the voting certificate so produced or for
which he is a proxy or representative. Without prejudice to the obligations of proxies, a person entitled to more than one vote need not use them all or cast them all in the same way. 

  

	27	 	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 any other votes which he may have.

  
 Effect and Publication of an Extraordinary
Resolution 
  

	28	 	An Extraordinary Resolution shall be binding on all the Noteholders, whether or not present at the meeting, and on all the Couponholders and each of them shall be bound to
give effect to it accordingly. The passing of such a resolution shall be conclusive evidence that the circumstances justify its being passed. The Relevant Issuer shall give notice of the passing of an Extraordinary Resolution to Noteholders within
14 days but failure to do so shall not invalidate the resolution. 

  
 Minutes 
  

	29	 	Minutes shall be made of all resolutions and proceedings at every meeting and, if purporting to be signed by the chairman of that meeting or of the next succeeding meeting,
shall be conclusive evidence of the matters in them. Until the contrary is proved every meeting for which minutes have been so made and signed shall be deemed to have been duly convened and held and all resolutions passed or proceedings transacted
at it to have been duly passed and transacted. 

  
 Trustee’s Power to Prescribe Regulations 
  

	30	 	Subject to all other provisions in this Trust Deed the Trustee may without the consent of the Noteholders prescribe such further regulations regarding the holding of meetings
and attendance and voting at them as it in its sole discretion determines including (without limitation) such requirements as the Trustee thinks reasonable to satisfy itself that the persons who purport to make any requisition in accordance with
this Trust Deed are entitled to do so and as to the form of voting certificates or block voting instructions so as to satisfy itself that persons who purport to attend or vote at a meeting are entitled to do so. 

  

	31	 	The holder of a Global Note or Global Certificate shall (unless such Global Note or Global Certificate represents only one Note) be treated as 2 persons for the purposes of
any quorum requirements of a meeting of Noteholders. 

  

	32	 	The foregoing provisions of this Schedule shall have effect subject to the following provisions: 

  

	32.1	 	Meetings of Noteholders of separate Series will normally be held separately. However, the Trustee may from time to time determine that meetings of Noteholders of separate
Series shall be held together 

  

	32.2	 	A resolution that in the opinion of the Trustee affects one Series alone shall be deemed to have been duly passed if passed at a separate meeting of the Noteholders of the
Series concerned 

  

 84 

	32.3	 	A resolution that in the opinion of the Trustee affects the Noteholders of more than one Series but does not give rise to a conflict of interest between the Noteholders of
the different Series concerned shall be deemed to have been duly passed if passed at a single meeting of the Noteholders of the relevant Series provided that for the purposes of determining the votes a Noteholder is entitled to cast pursuant to
paragraph 26, each Noteholder shall have one vote in respect of each U.S.$1,000 principal amount of Notes held, converted, if such Notes are not denominated in U.S. dollars, in accordance with sub-Clause 8.12 

  

	32.4	 	A resolution that in the opinion of the Trustee affects the Noteholders of more than one Series and gives or may give rise to a conflict of interest between the Noteholders
of the different Series concerned shall be deemed to have been duly passed only if it shall be duly passed at separate meetings of the Noteholders of the relevant Series 

  

	32.5	 	To all such meetings as aforesaid all the preceding provisions of this Schedule shall mutatis mutandis apply as though references therein to Notes and to Noteholders were
references to the Notes and Noteholders of the Series concerned. 

  

 85 

 In witness whereof this Trust Deed has been executed as a deed on the date stated at the beginning. 
  
 SCOTTISH POWER plc 
  

	 By:
	  	 DAVID NISH
	  	 By:
	  	 ANDREW MITCHELL

  
 SCOTTISH POWER UK plc

  

	 By:
	  	 DAVID NISH
	  	 By:
	  	 ANDREW MITCHELL

  
 THE COMMON SEAL OF THE LAW DEBENTURE TRUST CORPORATION p.l.c. was affixed in the presence of: 
  

	 By:
	  	 ABIGAIL HOLLADAY
	  	 By:
	  	 ROBERT BEBB

		
	 Authorised Signatory
	  	 Authorised Signatory

  

 86$1 billion Multicurrency Revolving Credit Facilities for Scottish Power plc

 Exhibit 4.11 
  
 CONFORMED COPY 
  
 AGREEMENT 
  
 DATED 12th June, 2003 
  
 US$1,000,000,000 
  
 MULTICURRENCY REVOLVING CREDIT FACILITIES 
  
 for

  
 SCOTTISH POWER PLC 
  
 arranged by 
  
 THE BANK OF TOKYO-MITSUBISHI, LTD. 
  
 BARCLAYS CAPITAL 
  
 COMMERZBANK AKTIENGESELLSCHAFT (acting through COMMERZBANK 
 SECURITIES) 
  
 HSBC BANK
PLC 
  
 J.P. MORGAN PLC 
  
 and 
  
 THE ROYAL BANK OF SCOTLAND PLC 
  
 ALLEN & OVERY 
  
 London 

 CONTENTS 
  

	Clause

	  	 	  	Page

	 1.
	  	 Interpretation
	  	1
	 2.
	  	 The Facility
	  	17
	 3.
	  	 Purpose
	  	19
	 4.
	  	 Conditions Precedent
	  	19
	 5.
	  	 Utilisation—Loans
	  	20
	 6.
	  	 Utilisation—Letters of Credit
	  	21
	 7.
	  	 Letters of Credit
	  	22
	 8.
	  	 Utilisation—Swingline Loans
	  	27
	 9.
	  	 Swingline Loans
	  	28
	 10.
	  	 Term-Out Option
	  	29
	 11.
	  	 Repayment
	  	30
	 12.
	  	 Prepayment and Cancellation
	  	31
	 13.
	  	 Interest
	  	33
	 14.
	  	 Optional Currencies
	  	35
	 15.
	  	 Payments
	  	37
	 16.
	  	 Taxes
	  	39
	 17.
	  	 Market Disruption
	  	41
	 18.
	  	 Increased Costs
	  	42
	 19.
	  	 Illegality and Mitigation
	  	43
	 20.
	  	 Representations and Warranties
	  	44
	 21.
	  	 Undertakings
	  	48
	 22.
	  	 Default
	  	54
	 23.
	  	 The Agent and the Mandated Lead Arrangers
	  	58
	 24.
	  	 Fees
	  	62
	 25.
	  	 Expenses
	  	63
	 26.
	  	 Stamp Duties
	  	64
	 27.
	  	 Indemnities
	  	64
	 28.
	  	 Evidence And Calculations
	  	65
	 29.
	  	 Amendments and Waivers
	  	65
	 30.
	  	 Changes to the Parties
	  	66
	 31.
	  	 Disclosure of Information
	  	68
	 32.
	  	 Set-Off
	  	69
	 33.
	  	 Pro Rata Sharing
	  	69
	 34.
	  	 Severability
	  	70
	 35.
	  	 Counterparts
	  	70
	 36.
	  	 Notices
	  	70
	 37.
	  	 Governing Law
	  	71
	 38.
	  	 Jurisdiction
	  	71
	 39.
	  	 Service of Process
	  	72

	Schedule

	  	 
	 1.
	  	 Original Parties
	  	73
	 2.
	  	 Conditions Precedent Documents
	  	75
	 3.
	  	 Calculation of The Mandatory Cost
	  	77
	 4.
	  	 Form of Request
	  	79
	 5.
	  	 Form of Novation Certificate
	  	80
	 6.
	  	 Form of Legal Opinion of Allen & Overy
	  	81
	 7.
	  	 Form of Legal Opinion of Maclay Murray & Spens
	  	83
	 8.
	  	 Forms of Letter of Credit
	  	87
	 	  	 Part 1        Form of Fronted LC
	  	87
	 	  	 Part 2        Form of Syndicate LC
	  	91
	 9.
	  	 Existing Borrowings
	  	96
	 10.
	  	 Form of Confidentiality Undertaking
	  	98
		
	 Signatory
	  	 102

 THIS AGREEMENT is dated 12th June, 2003 BETWEEN: 
  

	(1)	 	SCOTTISH POWER PLC (Registered No. SC193794) (the Company); 

  

	(2)	 	THE BANK OF TOKYO-MITSUBISHI, LTD., BARCLAYS CAPITAL, COMMERZBANK AKTIENGESELLSCHAFT (acting through Commerzbank Securities), HSBC BANK PLC, J.P.
MORGAN PLC and THE ROYAL BANK OF SCOTLAND PLC as mandated lead arrangers (in this capacity the Mandated Lead Arrangers); 

  

	(3)	 	THE FINANCIAL INSTITUTIONS listed in Schedule 1 (Original Parties) as banks (the Original Banks); 

  

	(4)	 	THE ROYAL BANK OF SCOTLAND PLC as agent (in this capacity the Agent); and 

  

	(5)	 	THE ROYAL BANK OF SCOTLAND PLC, NEW YORK BRANCH as swingline agent (in this capacity the Swingline Agent). 

  

	IT	 	IS AGREED as follows: 

  

	1.	 	INTERPRETATION 

  

	1.1	 	Definitions 

  
 In this Agreement: 
  
 Affiliate means a Subsidiary or a Holding Company (as defined in Section 736 of the Companies Act 1985) of a person and any other Subsidiary of
that Holding Company. 
  
 Agent’s Spot Rate of Exchange
means the Agent’s spot rate of exchange for the purchase of the relevant Optional Currency in the London foreign exchange market with US Dollars at or about 11.00 a.m. on a particular day. 
  
 Agreed Percentage means in relation to a Bank and a Swingline Loan,
the amount of its Facility B Revolving Credit Commitment expressed as a percentage of the Total Facility B Commitments. 
  
 Availability Period means the period from and including the date of this Agreement to and including: 
  

	 	(a)	 	for Facility A, the date falling 364 days after the date of this Agreement; and 

  

	 	(b)	 	for Facility B, the date falling one month prior to the Facility B Final Maturity Date. 

  
 Balance Sheet means, at any time, the latest published audited consolidated balance sheet of the Group on a historic
cost basis. 
  
 Bank means: 
  

	 	(a)	 	any Original Bank; and 

  

	 	(b)	 	any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 30 (Changes to the Parties). 

  

 1 

 Borrowings means any indebtedness in respect of: 
  

	 	(a)	 	moneys borrowed and debit balances at banks and other financial institutions; 

  

	 	(b)	 	any debt security including any bond, note or loan stock; 

  

	 	(c)	 	any acceptance under any acceptance credit facility opened by a bank or other financial institution; 

  

	 	(d)	 	the sale or discounting of receivables (except to the extent that such sale or discounting is on a non-recourse basis); 

  

	 	(e)	 	any lease which the Company accounts for as a finance lease as such term is described in the Statement of Standard Accounting Practices No. 21 (or any successor statement or
financial reporting standard); 

  

	 	(f)	 	any accrued fixed or minimum premium payable on the repayment or redemption of any instrument referred to in paragraph (b) above; 

  

	 	(g)	 	for the purposes of Clause 22.5 (Cross-default) only, any derivative transaction including interest rate swaps, currency swaps (including spot and forward exchange contracts), caps,
collars, floors and similar obligations (and, when calculating the value of any such derivative transaction, only the marked to market value shall be taken into account); 

  

	 	(h)	 	the acquisition cost of any asset to the extent payable before or after the time of acquisition or possession by the party liable where the advance or deferred payment is arranged
primarily as a method of raising finance or financing the acquisition of that asset; 

  

	 	(i)	 	any other transaction which has the commercial effect of a borrowing, including for the avoidance of doubt, any proceeds received by any member of the Group in connection with a
securitisation or transaction of a similar effect in respect of the assets of that member of the Group; and 

  

	 	(j)	 	any guarantee, indemnity and/or other form of assurance against financial loss by any member of the Group in respect of any indebtedness of any person of a type referred to in
paragraphs (a) to (i) above (in the case of paragraph (g) above, for the purposes of Clause 22.5 (Cross-default) only). 

  
 Any amount outstanding in a currency other than Sterling is to be taken into account at its Sterling equivalent calculated on the basis of the
Agent’s spot rate of exchange at 11.00 a.m. on the day the relevant amount falls to be calculated. However, indebtedness owing by one member of the Group to another member of the Group shall not be taken into account as Borrowings and, for the
purposes of calculating the amount of Borrowings at any time: 
  

	 	(i)	 	deep discount borrowings will be valued at the amount attributed to them in the then latest Balance Sheet; and 

  

	 	(ii)	 	no item of indebtedness will be double counted by the inclusion of both the primary indebtedness and indebtedness arising under a guarantee, indemnity and/or other form of assurance
with respect to that primary indebtedness. 

  

 2 

 Business Day means a day (other than a Saturday or a Sunday) on which banks are open for business
in: 
  

	 	(a)	 	London; and 

  

	 	(b)	 	Glasgow; and 

  

	 	(c)	 	New York; and 

  

	 	(d)	 	in relation to a transaction involving an Optional Currency (other than euros) the principal financial centre of the country of that Optional Currency; and 

 

	 	(e)	 	in relation to a transaction involving euros, a TARGET Day. 

  
 Commitment means a Facility A Commitment or a Facility B Commitment. 
  
 Consolidated Dividends means, in respect of any period, the aggregate of any dividend or other distribution declared,
recommended or made by the Company during that period. 
  
 Consolidated EBITDA means in respect of any financial year of the Group, the consolidated profits of the Group before: 
  

	 	(a)	 	Net Interest Payable; 

  

	 	(b)	 	tax; 

  

	 	(c)	 	depreciation; 

  

	 	(d)	 	amortisation (including, for the avoidance of doubt, of goodwill); and 

  

	 	(e)	 	extraordinary and exceptional items, 

  
 but adjusted by deducting any amount attributable to minority interests, as determined from the financial statements of the Group and compliance
certificates delivered under, respectively, Clause 21.2 (Financial information) and Clause 21.6 (Compliance certificates). 
  
 Dangerous Substance means any radioactive emissions and any natural or artificial substance (whether in solid or liquid form or in the form of a
gas or vapour and whether alone or in combination with any other substance) capable (in each case) of causing harm to man or any other living organism or damaging the environment or public health or welfare, including (without limitation) any
controlled, special, hazardous, toxic, radioactive or dangerous waste. 
  
 Default means an Event of Default or an event which, with the giving of notice, lapse of time, or fulfilment of any other applicable condition (or any combination of the foregoing), would constitute an Event of Default. 

 
 Drawdown Date means the date of the advance of a Loan. 

 
 Earnings means, in respect of any period, the consolidated profits
of the Group after tax, adjusted by: 
  

	 	(a)	 	adding back any amount attributable to amortisation of goodwill; and 

  

	 	(b)	 	taking no account of any exceptional item, 

  

 3 

 
as determined from the financial statements of the Group and compliance certificates delivered under, respectively, Clause 21.2 (Financial information) and
Clause 21.6 (Compliance certificates). 
  
 EC means the
European Community and its successors. 
  
 EBITDA means in
respect of any financial year of a company, the consolidated profits of that company before: 
  

	 	(a)	 	Net Interest Payable attributable to it; 

  

	 	(b)	 	tax; 

  

	 	(c)	 	depreciation; 

  

	 	(d)	 	amortisation (including, for the avoidance of doubt, of goodwill); and 

  

	 	(e)	 	extraordinary and exceptional items, 

  
 but adjusted by deducting any amount attributable to minority interests, in each case which are attributable to that company. 
  
 EIB means the European Investment Bank. 
  
 EIB Facilities means any credit facilities made available by the
European Investment Bank to a UK Subsidiary after the date of this Agreement. 
  
 Electricity Act means the Electricity Act 1989, as amended by the Utilities Act 2000 and, unless the context so requires, all subordinate legislation made pursuant thereto. 
  
 Energy Laws means the Electricity Act and all other laws, regulations
or requirements of any relevant authority (in so far as such regulations or requirements have the force of law) relating to the generation, transmission, distribution, supply or trading of electricity or any other sources of energy in each
jurisdiction in which any member of the Group carries on business at any time. 
  
 Environmental Claim means any claim by any person in connection with: 
  

	 	(a)	 	a breach, or alleged breach, of Environmental Law; 

  

	 	(b)	 	any accident, fire, explosion or other event of any type involving an emission or substance which is capable of causing harm to any living organism or the environment; or

  

	 	(c)	 	any other environmental contamination. 

  
 Environmental Law means all laws, regulations, codes of practice, circulars, guidance notices and the like (whether in the United Kingdom or
elsewhere) whether or not having the force of law but if not having the force of law compliance with which is customary in the industry in which any member of the Group operates concerning the protection of human health or the environment or the
conditions of the work place or the generation, transportation, storage, treatment or disposal of Dangerous Substances. 
  

 4 

 Environmental Licence means any permit, licence, authorisation, consent or other approval required
by any Environmental Law. 
  
 EURIBOR means for a Term of
any Loan or overdue amount in euro: 
  

	 	(a)	 	the applicable Screen Rate; or 

  

	 	(b)	 	if no Screen Rate is available for that Term of that Loan or overdue amount, the arithmetic mean (rounded upward to four decimal places) of the rates as supplied to the Agent at its
request quoted by the Reference Banks to leading banks in the European interbank market, 

  
 as of 11.00 a.m. (Brussels time) on the Rate Fixing Day for the offering of deposits in euro for a period comparable to that Term. 
  
 euro means the single currency of the Participating Member States.

  
 Event of Default means an event specified as such in
Clause 22.1 (Events of Default). 
  
 Existing Facility
means: 
  

	 	(a)	 	a bilateral loan facility dated 17th September, 2002 between the Company as borrower and The Bank of Tokyo-Mitsubishi, Ltd.; and 

  

	 	(b)	 	a bilateral loan facility dated 21st November, 2002 between the Company as borrower and The Royal Bank of Scotland plc. 

  
 Facility means each facility referred to in Clause 2 (The Facility).

  
 Facility A means the revolving credit facility
referred to in Clause 2.1 (Facility A). 
  
 Facility A
Commitment means: 
  

	 	(a)	 	for an Original Bank, the amount set opposite its name in Schedule 1 under the heading Facility A Commitments and the amount of any other Facility A Commitment it acquires under
Clause 30 (Changes to the Parties); and 

  

	 	(b)	 	for any other Bank the amount of any Facility A Commitment it acquires under Clause 30 (Changes to the Parties), 

  
 to the extent not cancelled, transferred or reduced under this Agreement.

  
 Facility A Final Maturity Date means: 
  

	 	(a)	 	subject to Clause 10 (Term-Out Option), the date falling 364 days after the date of this Agreement; or 

  

	 	(b)	 	in respect of any Term Loans drawn under Facility A in accordance with Clause 10 (Term-Out Option), the date falling 364 days after the date on which the Company exercises the
term-out option. 

  
 Facility A Loan means a
Facility A Revolving Credit Loan or a Term Loan. 
  
 Facility
A Revolving Credit Loan means a loan under Facility A (other than a Term Loan). 
  

 5 

 Facility B means the revolving credit facility referred to in Clause 2.2 (Facility B),
incorporating the letter of credit option referred to in Clause 2.3 (Letters of Credit) and the swingline facility referred to in Clause 2.4 (Swingline Facility). 
  
 Facility B Commitment means a Facility B Revolving Credit Commitment or a Swingline Commitment. 
  
 Facility B Final Maturity Date means the fifth anniversary of the
date of this Agreement. 
  
 Facility B Loan means a
Facility B Revolving Credit Loan or a Swingline Loan. 
  
 Facility B Revolving Credit Commitment means: 
  

	 	(a)	 	for an Original Bank, the amount set opposite its name in Schedule 1 under the heading Facility B Revolving Credit Commitments and the amount of any other Facility B Revolving
Credit Commitment it acquires under Clause 30 (Changes to the Parties); and 

  

	 	(b)	 	for any other Bank the amount of any Facility B Revolving Credit Commitment it acquires under Clause 30 (Changes to the Parties), 

  
 to the extent not cancelled, transferred or reduced under this Agreement.

  
 Facility B Revolving Credit Facility means the
revolving credit facility made available under Clause 2.2 (Facility B) of this Agreement. 
  
 Facility B Revolving Credit Loan means a loan under Facility B (other than a Swingline Loan). 
  
 Facility Office means, subject to Clause 30.6 (Change of Facility Office)), the office(s) notified by a Bank to the Agent: 
  

	 	(a)	 	on or before the date it becomes a Bank; or 

  

	 	(b)	 	by not less than five Business Days’ notice, 

  
 as the office(s) through which it will perform all or any of its obligations under this Agreement. 
  
 Fee Letter means: 
  

	 	(a)	 	the letter dated the date of this Agreement between the Mandated Lead Arrangers and the Company setting out the amount of various fees referred to in Clause 24.1 (Front-end fees);
and 

  

	 	(b)	 	the letter dated the date of this Agreement between the Agent and the Company setting out the amount of various fees referred to in Clause 24.4 (Agent’s fee).

  
 Final Maturity Date means the Facility A
Final Maturity Date or the Facility B Final Maturity Date. 
  
 Finance Document means this Agreement, a Fee Letter, a Letter of Credit, a Novation Certificate or any other document designated as such by the Agent and the Company. 
  

 6 

 Finance Party means a Mandated Lead Arranger, a Bank, a Fronting Bank, the Swingline Agent or the
Agent. 
  
 Fronted LC means a Letter of Credit that is
issued by a Fronting Bank. 
  
 Fronting Bank means a Bank
which has agreed to act as a Fronting Bank in relation to a Letter of Credit. 
  
 Group means at any time the Company and its Subsidiaries at that time. 
  
 Hedging Liabilities means indebtedness arising in respect of obligations of the type referred to in paragraph (g) of the definition of
“Borrowings” in this Clause 1.1. 
  
 IBOR means
LIBOR or EURIBOR. 
  
 Interest Payable means, in respect
of any financial period, all interest, discount and acceptance commission and all other continuing, regular or periodic costs, charges and expenses in the nature of interest (whether paid, payable or capitalised) or treated for accounting purposes
as interest, incurred by the Group in effecting, servicing or maintaining Total Consolidated Borrowings during that period. 
  
 Interest Receivable means, in respect of any financial period, interest and amounts in the nature of interest received during that period by the
Group from persons outside the Group. 
  
 Investments
means: 
  

	 	(a)	 	cash on current account or cash on deposit with, or certificates of deposit issued by, or bills of exchange accepted by, any bank incorporated in an OECD country from which proceeds
are readily remittable to the United Kingdom, and in each case, where the deposit or the maturity is for a duration of six months or less; and 

  

	 	(b)	 	bonds or treasury bills issued by an OECD government or agency, bonds rated single-A or above by a major rating agency and commercial paper rated A1 or P1 by a major rating agency,
in each case, where the proceeds of which are readily remittable to the United Kingdom. 

  
 Letter of Credit means a letter of credit, substantially in the form of Schedule 8 (Letter of Credit) or in any other form agreed by the Fronting
Bank (for a Fronted LC) or Agent (for a Syndicate LC) (as the case may be). 
  
 LIBOR means for a Term of any Loan or overdue amount (other than in euro): 
  

	 	(a)	 	the applicable Screen Rate; or 

  

	 	(b)	 	if no Screen Rate is available for the relevant currency or Term of that Loan or overdue amount, the arithmetic mean (rounded upward to four decimal places) of the rates, as
supplied to the Agent at its request, quoted by the Reference Banks to leading banks in the London interbank market, 

  
 as of 11.00 a.m. on the Rate Fixing Day for the offering of deposits in the currency of that Loan or overdue amount for a period comparable to that Term.

  
 Licence means each licence or other similar
authorisation granted by any relevant UK or US authority (as the case may be) to a member of the Group carrying on business in the United 
  

 7 

 Kingdom or United States (as the case may be) pursuant to any Energy Law or otherwise to permit it to
carry out generation, transmission, distribution or supply of electricity or to trade electricity. 
  
 Loan means the principal amount of a borrowing by the Company under this Agreement or the principal amount outstanding of that borrowing, being a
Revolving Credit Loan, Swingline Loan or a Term Loan. 
  
 Majority Banks means, at any time, Banks: 
  

	 	(a)	 	the aggregate of whose shares in the outstanding Utilisations and undrawn Commitments then represents 66 2/3 per cent. or more of the aggregate of all the outstanding Utilisations and undrawn Commitments of all the Banks;

  

	 	(b)	 	if there is no Utilisation then outstanding, whose undrawn Commitments then aggregate 66 2/3 per cent. or more of the Total Commitments; or 

  

	 	(c)	 	if there is no Utilisation then outstanding and the Total Commitments have been reduced to zero, whose Commitments aggregated 66 2/3 per cent. or more of the Total Commitments immediately before the reduction. 

  
 Mandatory Cost means the cost of complying with certain regulatory
requirements, expressed as a percentage rate per annum and calculated by the Agent under Schedule 3 (Calculation of Mandatory cost). 
  
 Mandatory Subsidiaries means: 
  

	 	(a)	 	SP Distribution, SP Manweb, SP Transmission, SP UK and PacifiCorp; and 

  

	 	(b)	 	any Subsidiary to whom a Mandatory Subsidiary sells, transfers, grants, leases or otherwise disposes of any Licence, in whole or in part. 

  
 Margin means: 
  

	 	(a)	 	in relation to a Loan under Facility A, 0.55 per cent. per annum; 

  

	 	(b)	 	in relation to a Facility B Revolving Credit Loan, 0.65 per cent. per annum; or 

  

	 	(c)	 	at any time, if different, the rate per annum determined by reference to the lower of the Company’s long term credit ratings assigned by S&P or Moody’s (or any other
rating agency approved for this purpose by the Majority Banks) last published (and not withdrawn) at that time, as follows: 

  

	 Rating

	 	 Margin (% per annum)

	 S&P

	 	 Moody’s

	 	 Facility A

	 	 Facility B

	 A or better
	 	A2 or better	 	0.375	 	0.475
	 A-
	 	A3	 	0.45	 	0.55
	 BBB+
	 	Baa1	 	0.55	 	0.65
	 BBB
	 	Baa2	 	0.675	 	0.775
	BBB - or lower
(or if (1) the
Borrower	 	 Baa3 or lower (or if
 (1)
the Borrower
 ceases to have such
	 	0.85	 	0.95

  

 8 

	 Rating

	 	 Margin (% per annum)

	 S&P

	 	 Moody’s

	 	 Facility A

	 	 Facility B

	 ceases to have
 such rating;
or
 (2) an Event of
 Default is
 outstanding)
	 	 rating; or (2) an
 Event of Default
is
 outstanding)
	 	 	 	 

  
 Material Adverse
Effect means any effect which, in the opinion of the Majority Banks, is or is reasonably likely to be materially adverse to the ability of the Company to perform any of its payment obligations under any of the Finance Documents (taking into
account resources available to it without breaching the terms of this Agreement from other members of the Group), or to comply with any of its obligations under Clause 21.12 (Financial covenants). 
  
 Moody’s means Moody’s Investors Service, Inc. 

 
 Net Interest Payable means, in respect of any financial period,
Interest Payable during that period less Interest Receivable during that period. 
  
 Novation Certificate means a duly completed certificate, substantially in the form of Schedule 5 (Form of Novation Certificate). 
  
 Ofgem means the Office of Gas and Electricity Markets. 
  
 Operating Profit means the consolidated net pre-taxation profits (after adding back Net Interest Payable) of the
Group for a financial year of the Group before taking account of any exceptional or extraordinary profits (or losses), as determined from the financial statements of the Group and compliance certificates delivered under, respectively, Clause 21.2
(Financial information) and Clause 21.6 (Compliance certificates). 
  
 Optional Currency means Sterling, euros or any other currency (other than US Dollars) which is for the time being freely transferable and convertible into US Dollars and deposits of which are readily available in the London interbank
market. 
  
 Original Dollar Amount means: 
  

	 	(a)	 	the principal amount of a Utilisation denominated in US Dollars; or 

  

	 	(b)	 	the principal amount of a Utilisation denominated in an Optional Currency translated into US Dollars on the basis of the Agent’s Spot Rate of Exchange three Business Days
before its Utilisation Date or, as the case may be, its Revaluation Date (as defined in Clause 7.2 (Revaluation)). 

  
 Original Group Accounts means the audited consolidated accounts of the Group for the year ended 31st March, 2002. 
  
 Overall Facility B Commitment of a Bank means: 
  

	 	(a)	 	its Facility B Revolving Credit Commitment; or 

  

 9 

	 	(b)	 	in the case of a Swingline Lender which does not have a Facility B Revolving Credit Commitment, the Facility B Revolving Credit Commitment of a Bank which is its Affiliate.

  
 PacifiCorp means PacifiCorp (a company
incorporated in Portland, Oregon). 
  
 PacifiCorp Facility
means a US$500,000,000 loan facility for PacifiCorp dated 3rd June, 2003. 
  
 Participating Member State means a member state of the European Communities that adopts or has adopted the euro as its lawful currency under the legislation of the European Community for Economic Monetary
Union. 
  
 Party means a party to this Agreement.

  
 Permitted Security Interest means: 
  

	 	(a)	 	any Security Interest created or outstanding with the prior written consent of the Majority Banks; 

  

	 	(b)	 	any lien or hypothecation arising by operation of law or contained in a contract for the sale of goods, supply of services or joint operation of assets entered into in the ordinary
course of trade of the company creating the same; 

  

	 	(c)	 	Security Interests not otherwise permitted under paragraphs (a) and (b) above provided that the aggregate principal amount of the indebtedness secured by Security Interests
permitted under this paragraph (c) shall not at any time exceed an amount equal to 15 per cent. of Tangible Consolidated Net Worth at that time; 

  

	 	(d)	 	any Security Interest created by a Project Finance Subsidiary to secure its Project Finance Borrowings; and 

  

	 	(e)	 	any Security Interest created by PacifiCorp and permitted under clause 5.07 (Negative Pledge) of the PacifiCorp Facility. 

  
 Principal Subsidiary means: 
  

	 	(a)	 	each Mandatory Subsidiary and each other Subsidiary so designated by the Company in accordance with Clause 21.5 (Principal Subsidiaries) such that the aggregate EBITDA and Net
Assets of the Principal Subsidiary Group equals or exceeds 75 per cent. of Consolidated EBITDA and the Net Assets of the Group respectively, all as calculated by reference to (in the case of any Subsidiary) each relevant Subsidiary’s most
recent annual accounts and (in the case of the Group) in the most recent annual consolidated accounts of the Group and for this purpose Net Assets in relation to any Subsidiary means its total assets (excluding goodwill) less its total
liabilities and in relation to the Group means the total assets (excluding goodwill) of the Group less its total liabilities; and 

  

	 	(b)	 	any other Subsidiary or Subsidiaries of the Company to whom all or substantially all of the assets or business of a Principal Subsidiary are transferred. 

 
 Principal Subsidiary Group means at any time the Principal
Subsidiaries at that time. 
  

 10 

 Project Finance Borrowings means any Borrowing which finances, and any Hedging Liabilities
incurred in the financing of the acquisition, development, ownership and/or operation of an asset: 
  

	 	(a)	 	which is incurred by a Project Finance Subsidiary; or 

  

	 	(b)	 	in respect of which the person or persons to whom such Borrowing is or may be owed by the relevant debtor (whether or not a member of the Group) has or have no recourse whatsoever
to any member of the Group (other than to a Project Finance Subsidiary) for the repayment thereof other than: 

  

	 	(i)	 	recourse to such debtor for amounts limited to the cash flow or net cash flow (other than historic cash flow or historic net cash flow) from such asset; and/or

  

	 	(ii)	 	recourse to such debtor for the purpose only of enabling amounts to be claimed in respect of such Borrowing in an enforcement of any Security Interest given by such debtor over such
asset or the income, cash flow or other proceeds deriving therefrom (or given by any shareholder or the like in the debtor over its shares or like interest in the capital of the debtor) to secure such Borrowing, provided that (I) the extent of such
recourse to such debtor is limited solely to the amount of any recoveries made on any such enforcement, and (II) such person or persons are not entitled, by virtue of any right or claim arising out of or in connection with such Borrowing, to
commence proceedings for the winding up or dissolution of the debtor or to appoint or procure the appointment of any receiver, trustee or similar person or officer in respect of the debtor or any of its assets (save only for the assets the subject
of such Security Interest); and/or 

  

	 	(iii)	 	recourse to such debtor generally, or directly or indirectly to a member of the Group, under any form of assurance, undertaking or support, which recourse is limited to a claim for
damages (other than liquidated damages and damages required to be calculated in a specified way) for breach of an obligation (not being a payment obligation or an obligation to procure payment by another or an indemnity in respect thereof or any
obligation to comply or to procure compliance by another with any financial ratios or other tests of financial condition) by the person against whom such recourse is available. 

  
 Project Finance Subsidiary means any Subsidiary of the Company:

  

	 	(a)	 	which is a company whose principal assets and business are constituted by the ownership, acquisition, development and/or operation of an asset whether directly or indirectly;

  

	 	(b)	 	none of whose Borrowings in respect of the financing of such ownership, acquisition, development and/or operation of an asset benefits from any recourse whatsoever to any member of
the Group (other than the Subsidiary itself or another Project Finance Subsidiary) in respect of the repayment thereof, except as expressly referred to in paragraph (b)(iii) of the definition of Project Finance Borrowings in this Clause 1.1; and

  

	 	(c)	 	which has been designated as such by the Company by written notice to the Agent, provided that the Company may give written notice to the Agent at any time that any

  

 11 

	 	 
Project Finance Subsidiary is no longer a Project Finance Subsidiary, whereupon it shall cease to be a Project Finance Subsidiary.

  
 Pro Rata Share means the proportion
which a Bank’s Commitment under a Facility bears to all the Commitments under that Facility at that time. 
  
 Qualifying Bank means an institution which is: 
  

	 	(a)	 	a bank which is within the charge to UK corporation tax in respect of, and beneficially entitled to, a payment of interest on a Loan made by a person that was a bank for the
purposes of section 349 of the Income and Corporation Taxes Act 1988 (as currently defined in section 840A of the Income and Corporation Taxes Act) at the time the Loan was made; or 

  

	 	(b)	 	a financial institution which is a resident (as defined in the appropriate double taxation agreement) in a country with which the UK has a double taxation agreement giving residents
of that country exemption from UK taxation on interest and which does not carry on a business in the UK through a permanent establishment with which the payment is effectively connected. 

  
 Rate Fixing Day means: 
  

	 	(a)	 	the first day of a Term for a Loan denominated in Sterling; or 

  

	 	(b)	 	the second Business Day before the first day of a Term for a Loan denominated in US Dollars or an Optional Currency (other than Sterling or euros); or 

  

	 	(c)	 	the second TARGET Day before the first day of a Term for a Loan denominated in euros, 

  
 unless market practice differs in the Relevant Interbank Market for a currency, in which case the Rate Fixing Day for that
currency will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Rate Fixing Day will
be the last of those days). 
  
 Reference Banks means,
subject to Clause 30.4 (Reference Banks), the principal London offices of Barclays Bank PLC, HSBC Bank plc, JPMorgan Chase Bank and The Royal Bank of Scotland plc. 
  
 Relevant Interbank Market means in relation to euros, the European interbank market and, in relation to any other
currency, the London interbank market. 
  
 Repayment Date
means the last day of a Term for a Utilisation. 
  
 Request means a request made by the Company for a Utilisation, substantially in the form of Schedule 4 (Form of Request). 
  
 Reservations means the qualifications as to matters of law only contained in the legal opinions set out in Schedule 6 (Form of legal opinion of
Allen & Overy) and Schedule 7 (Form of legal opinion of Maclay Murray & Spens). 
  
 Revolving Credit Loan means a Facility A Revolving Credit Loan or a Facility B Revolving Credit Loan. 
  

 12 

 Rollover Loan means one or more Revolving Credit Loans: 
  

	 	(a)	 	to be made on the same day that a maturing Revolving Credit Loan under the same Facility is due to be repaid; 

  

	 	(b)	 	the aggregate amount of which is equal to or less than the maturing Revolving Credit Loan under the same Facility; 

  

	 	(c)	 	in the same currency as the maturing Revolving Credit Loan under the same Facility; and 

  

	 	(d)	 	to be made for the purpose of refinancing a maturing Revolving Credit Loan under the same Facility. 

  
 S&P means Standard & Poor’s Ratings Group, a division of the McGraw Hill Companies, Inc. 
  
 Screen Rate means: 
  

	 	(a)	 	for LIBOR, the British Bankers Association Interest Settlement Rate; and 

  

	 	(b)	 	for EURIBOR, the percentage rate per annum determined by the Banking Federation of the European Union, 

  
 for the relevant currency and Term displayed on the appropriate page of the Telerate screen selected by the Agent. If the
relevant page is replaced or the service ceases to be available, the Agent (after consultation with the Company and the Banks) may specify another page or service displaying the appropriate rate. 
  
 Security Interest means any mortgage, pledge, lien, charge,
assignment by way of security or subject to a proviso for redemption, assignation in security, standard security, hypothecation or security interest or any other agreement or arrangement having the effect of conferring security. 
  
 SP Distribution means SP Distribution Limited (Registered No.
SC189125). 
  
 SP Energy Management means ScottishPower
Energy Management Limited (Registered No.: SC215843) 
  
 SP
Manweb means SP Manweb plc (Registered No. 2366937). 
  
 SP Transmission means SP Transmission Limited (Registered No. SC189126). 
  
 SP UK means Scottish Power UK plc (Registered No. SC117120). 
  
 Sterling means the lawful currency for the time being of the UK 
  
 Subsidiary means a subsidiary within the meaning of Section 736 of the Companies Act 1985, as amended by Section 144
of the Companies Act 1989. 
  
 Swingline Commitment means:

  

	 	(a)	 	in the case of a Swingline Lender on the date of this Agreement, the amount in US Dollars set opposite its name in Schedule 1 (Original Parties) under the heading

  

 13 

	 	 
“Swingline Commitments” and the amount of any other Swingline Commitment it acquires; or 

  

	 	(b)	 	for any other Swingline Lender, the amount of any Swingline Commitment it acquires, 

  
 to the extent not transferred, cancelled or reduced under this Agreement. 
  
 Swingline Facility means the swingline facility made available under
this Agreement as part of Facility B. 
  
 Swingline Lender
means: 
  

	 	(a)	 	a Bank listed in Schedule 1 (Original Parties) as a swingline lender; or 

  

	 	(b)	 	any other person that becomes a Swingline Lender after the date of this Agreement. 

  
 Swingline Loan means a Loan under the Swingline Facility and identified as such in the Request for that Loan.

  
 Syndicate LC means a Letter of Credit that is issued
via the Agent on behalf of the Banks with a Facility B Revolving Credit Commitment on a several basis. 
  
 Tangible Consolidated Net Worth means at any time the aggregate of: 
  

	 	(a)	 	the amount paid up or credited as paid up on the issued share capital of the Company; and 

  

	 	(b)	 	the amount standing to the credit of the consolidated capital and revenue reserves of the Group; 

  
 based on the Balance Sheet but adjusted by: 
  

	 	(i)	 	adding any amount standing to the credit of the profit and loss account for the Group for the period ending on the date of the Balance Sheet, to the extent not included in
sub-paragraph (b) above and to the extent the amount is not attributable to any dividend or other distribution declared, recommended or made by any member of the Group; 

  

	 	(ii)	 	deducting any amount standing to the debit of the profit and loss account for the Group for the period ending on the date of the Balance Sheet, to the extent not included in
sub-paragraph (b) above; 

  

	 	(iii)	 	deducting any amount attributable to goodwill or any other intangible asset; 

  

	 	(iv)	 	deducting any amount attributable to a revaluation of assets after 31st March, 2002 or, in the case of assets of a company which becomes a member of the Group after that date, the
date on which that company becomes a member of the Group unless in either case such revaluation is based on valuations by independent valuers; 

  

	 	(v)	 	reflecting any variation in the amount of the issued share capital of the Company and the consolidated capital and revenue reserves of the Group after the date of the Balance Sheet;

  

 14 

	 	(vi)	 	reflecting any variation in the interest of the Company in any other member of the Group since the date of the Balance Sheet; 

  

	 	(vii)	 	excluding any amounts required to be set aside for taxation payable by the Group; 

  

	 	(viii)	 	excluding any amount attributable to minority interests; and 

  

	 	(ix)	 	eliminating inconsistencies between the accounting principles applied in connection with the Balance Sheet and those applied in connection with the Original Group Accounts,

  
 as determined from the financial statements of
the Group and compliance certificates delivered under, respectively, Clause 21.2 (Financial information) and Clause 21.6 (Compliance certificates). 
  
 TARGET Day means a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer payment system is open for the settlement
of payments in euro. 
  
 Term means each period determined
under this Agreement: 
  

	 	(a)	 	by reference to which interest on a Loan or an overdue amount is calculated; or 

  

	 	(b)	 	in respect of a Letter of Credit, for which the Fronting Bank (in respect of a Fronted LC) or (in respect of a Syndicate LC) the Banks on whose behalf such Letter of Credit was
issued may be under a liability under a Letter of Credit. 

  
 Term Loan means a term loan made under Facility A pursuant to Clause 10 (Term-Out Option). 
  
 Total Commitments means the aggregate for the time being of the Commitments, being US$1,000,000,000 at the date of this Agreement. 
  
 Total Consolidated Borrowings means, at any time, the aggregate
principal amount (or amounts equivalent to principal, howsoever described) comprised in the Borrowings of the Company and its Subsidiaries at that time calculated on a consolidated basis. Any amount outstanding in a currency other than Sterling (the
Relevant Currency) is to be taken into account at its Sterling equivalent calculated on the basis of the Agent’s spot rate of exchange for the purchase of the Relevant Currency in the London foreign exchange market with Sterling at or
about 11.00 a.m.on the day the relevant amount falls to be calculated. 
  
 Total Consolidated Net Borrowings means, at any time, Total Consolidated Borrowings less: 
  

	 	(a)	 	the aggregate principal amount of Investments beneficially owned by the Group free from Security Interests (to the extent the proceeds of the same are readily remittable to the UK)
at that time; and 

  

	 	(b)	 	any indebtedness of a member of the Group in respect of Borrowings which, as to prepayment, repayment or payment of principal, interest or other amounts in respect of such
Borrowings, are subordinated on terms satisfactory to the Majority Banks to any Borrowings made under this Agreement. 

  
 Total Facility A Commitments means the aggregate for the time being of the Facility A Commitments. 
  

 15 

 Total Facility B Commitments means the aggregate for the time being of the Facility B Commitments.

  
 Total Swingline Commitments means the aggregate of the
Swingline Commitments of all the Swingline Lenders, being the total amount specified as such in Schedule 1 (Original Parties) at the date of this Agreement. 
  
 UK means the United Kingdom. 
  
 UK Subsidiary means a Subsidiary of the Company incorporated in the UK. 
  
 Utilisation means a Loan or a Letter of Credit. 
  
 Utilisation Date means, for a Loan, its Drawdown Date, and for a Letter of Credit, the date on which that Letter of
Credit is issued. 
  
 US Dollars or US$ means the
lawful currency for the time being of the United States of America. 
  

	1.2	 	Construction 

  

	(a)	 	In this Agreement, unless the contrary intention appears, a reference to: 

  

	 	(i)	 	assets includes properties, revenues and rights of every description; 

  

	 	(ii)	 	an authorisation includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration and notarisation; 

  

	 	(iii)	 	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental body, agency, department or
regulatory, self-regulatory or other authority or organisation; 

  

	 	(iv)	 	a provision of a law is a reference to that provision as amended or re-enacted; 

  

	 	(v)	 	a Clause or a Schedule is a reference to a clause of or a schedule to this Agreement; 

  

	 	(vi)	 	a person includes its permitted successors and assigns; 

  

	 	(vii)	 	a Bank includes a Swingline Lender; 

  

	 	(viii)	 	a Finance Document or another document is a reference to that Finance Document or that other document as amended, novated or supplemented in writing; and 

 

	 	(ix)	 	a time of day is a reference to London time. 

  

	(b)	 	Unless the contrary intention appears, a reference to a month or months is a reference to a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next calendar month or the calendar month in which it is to end, except that: 

  

	 	(i)	 	if the numerically corresponding day is not a Business Day, the period will end on the next Business Day in that month (if there is one) or the preceding Business Day (if there is
not); 

  

	 	(ii)	 	if there is no numerically corresponding day in that month, that period will end on the last Business Day in that month; and 

  

 16 

	 	(iii)	 	notwithstanding sub-paragraph (i) above, a period which commences on the last Business Day of a month will end on the last Business Day in the next month or the calendar month in
which it is to end, as appropriate. 

  

	(c)	 	Unless the contrary intention appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement. 

  

	(d)        (i)	 	Terms used in the definitions of Borrowings, Consolidated Dividends, Consolidated EBITDA, Earnings, EBITDA, Interest Payable, Interest Receivable,
Net Interest Payable, Operating Profit, Tangible Consolidated Net Worth, Total Consolidated Borrowings and Total Consolidated Net Borrowings in Clause 1.1 (Definitions) are to be construed, and calculated, in
accordance with the accounting principles applied in connection with the Original Group Accounts. 

  

	 	(ii)	 	If there is a dispute as to any interpretation or computation for sub-paragraph (i) above, the interpretation or computation of the auditors for the time being of the Company will
prevail. 

  

	(e)	 	The index to and the headings in this Agreement are for convenience only and are to be ignored in construing this Agreement. 

  

	(f)        (i)	 	Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the Contracts (Rights of
Third Parties) Act 1999. 

  

	 	(ii)	 	Notwithstanding any term of any Finance Document, the consent of any third party is not required for any variation (including any release or compromise of any liability under) or
termination of that Finance Document. 

  

	(g)	 	References to Barclays Capital mean the investment banking division of Barclays Bank PLC. 

  

	2.	 	THE FACILITY 

  

	2.1	 	Facility A 

  
 Subject to the terms of this Agreement, the Banks grant to the Company a committed multicurrency revolving credit facility under which the Banks agree to
make Loans to the Company in an aggregate amount equal to the Total Facility A Commitments. 
  

	2.2	 	Facility B 

  
 Subject to the terms of this Agreement, the Banks agree to grant the Company a committed multicurrency revolving credit facility under which the Banks
agree to make Utilisations to the Company in an aggregate amount equal to the Total Facility B Commitments. 
  

	2.3	 	Letters of Credit 

  
 Facility B includes a letter of credit option. 
  

 17 

	2.4	 	Swingline Facility 

  

	(a)	 	Subject to the terms of this Agreement, the Swingline Lenders make available to the Company a swingline facility under Facility B in an aggregate amount equal to the Swingline
Commitments. 

  

	(b)	 	The Swingline Facility is not independent of the Facility B Revolving Credit Facility. 

  

	2.5	 	Number of Utilisations 

  
 No more than five (5) Utilisations shall be outstanding at any time. 
  

	2.6	 	Limits 

  

	(a)	 	The aggregate Original Dollar Amount of all outstanding Facility A Loans shall not exceed the Total Facility A Commitments. 

  

	(b)	 	The aggregate Original Dollar Amount of all outstanding Utilisations under Facility B shall not exceed the Total Facility B Commitments, provided in addition that:

  

	 	(i)	 	the aggregate Original Dollar Amount of all outstanding Letters of Credit shall not exceed US$200,000,000; and 

  

	 	(ii)	 	the aggregate Original Dollar Amount of all outstanding Swingline Loans shall not exceed the Total Swingline Commitments. 

  

	(c)	 	No Bank is obliged to participate in a Utilisation if it would cause the Original Dollar Amount of the aggregate of its participations in the Utilisations under a Facility to exceed
its Commitment for that Facility. 

  

	(d)	 	Notwithstanding any other term of this Agreement a Bank is only obliged to participate in a Swingline Loan to the extent that it would not result in its share in the Utilisations
and that of a Bank which is its Affiliate exceeding its Overall Facility B Commitment. 

  

	(e)	 	Where, but for the operation of paragraph (c) and (d) above, a Bank’s share in the Utilisations under Facility B and that of a Bank which is its Affiliate would have exceeded
its Overall Facility B Commitment, the excess will be apportioned among the other Banks participating in the relevant Utilisation pro rata according to their relevant Facility B Revolving Credit Commitments. This calculation will be applied as often
as necessary until the Utilisation is apportioned among the relevant Banks in a manner consistent with paragraph (c) above. 

  

	(f)	 	The Swingline Commitments must not at any time exceed the Facility B Revolving Credit Commitments and, if necessary, the Swingline Commitments will be automatically reduced to
achieve this. 

  

	2.7	 	Nature of a Finance Party’s rights and obligations 

  

	(a)	 	The obligations of a Finance Party under the Finance Documents are several. Failure of a Finance Party to carry out those obligations does not relieve any other Party of its
obligations under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents. 

  

 18 

	(b)	 	The rights of a Finance Party under the Finance Documents are divided rights. A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce those
rights. 

  

	2.8	 	Change of Currency 

  
 If a change in any currency of a country occurs, this Agreement will be amended to the extent the Agent acting reasonably and in consultation with the
Company specifies to be necessary to reflect the change in currency and to put the Banks in the same position, so far as possible, that they would have been in if no change in currency had occurred. 
  

	3.	 	PURPOSE 

  

	3.1	 	Facility A purpose 

  
 The Company shall apply each Facility A Loan towards its working capital requirements. 
  

	3.2	 	Facility B purpose 

  
 The Company shall apply each Utilisation under Facility B towards: 
  

	 	(a)	 	general corporate purposes including, for the avoidance of doubt, acquisitions provided the total consideration in respect of any such acquisition does not exceed US$200,000,000;
and 

  

	 	(b)	 	refinancing the Existing Facilities, 

  
 provided that a Swingline Loan may not be applied in repayment or prepayment of another Swingline Loan. 
  

	3.3	 	No obligation to monitor 

  
 Without affecting the obligations of the Company in any way, no Finance Party is bound to monitor or verify the application of any Loan. 
  

	4.	 	CONDITIONS PRECEDENT 

  

	4.1	 	Documentary conditions precedent 

  
 The obligations of each Finance Party to the Company under this Agreement are subject to the condition precedent that the Agent has notified the Company
and the Banks that it has received all of the documents set out in Schedule 2 in form and substance satisfactory to the Agent. 
  

	4.2	 	Further conditions precedent 

  
 The obligations of each Bank to participate in a Utilisation are subject to the further conditions precedent that on both the date of the Request and the
Utilisation Date for that Utilisation: 
  

	 	(i)	 	the representations and warranties in Clause 20 (Representations and Warranties) to be repeated on those dates are correct and will be correct immediately after the Utilisation is
made; and 

  

 19 

	 	(ii)	 	no Default or, in the case of a Rollover Loan, no Event of Default is outstanding or could reasonably be expected to result from the making of the Utilisation.

  

	5.	 	UTILISATION—LOANS 

  

	5.1	 	General 

  
 This Clause applies to all Loans other than Swingline Loans. 
  

	5.2	 	Receipt of Requests 

  
 The Company may borrow a Loan under a Facility if the Agent receives a duly completed Request, not later than 12.00 noon one Business Day before the
applicable Rate Fixing Day. 
  

	5.3	 	Completion of Requests 

  
 A Request will not be regarded as having been duly completed unless: 
  

	 	(a)	 	the Request specifies the Facility under which such Loan is to be drawn down; 

  

	 	(b)	 	the Drawdown Date is a Business Day falling within the relevant Availability Period; 

  

	 	(c)	 	the principal amount of the Loan is a minimum of US$10,000,000 and an integral multiple of US$5,000,000 (or its equivalent in an Optional Currency) or the principal amount of the
Loan is equal to the balance of the undrawn Total Facility A Commitments or Total Facility B Commitments (as the case may be) as at the proposed Drawdown Date; 

  

	 	(d)	 	one Term is specified which: 

  

	 	(i)	 	does not extend beyond the relevant Final Maturity Date; and 

  

	 	(ii)	 	is a period of one, two, three or six months. 

  

	 	(e)	 	the payment instructions comply with Clause 15 (Payments); 

  

	 	(f)	 	the amount selected under paragraph (c) above does not cause Clause 2.6 (Limits) to be contravened; and 

  

	 	(g)	 	if the currency selected is an Optional Currency it complies with Clause 14 (Optional Currencies). 

  

	5.4	 	Amount of each Bank’s participation in a Loan 

  
 The amount of each Bank’s participation in each Loan will be equal to: 
  

	 	(a)	 	the proportion of that Facility A Loan which its Facility A Commitment bears to the Total Facility A Commitments; and 

  

	 	(b)	 	the proportion of that Facility B Loan which its Facility B Commitment bears to the Total Facility B Commitments, 

  
 in each case on the date of receipt of the relevant Request. 
  

 20 

	5.5	 	Notification of the Banks 

  
 The Agent shall promptly notify each Bank of the details of the requested Loan and the amount of its participation in the Loan. 
  

	5.6	 	Payment of proceeds 

  
 Subject to the terms of this Agreement, each Bank shall make its participation in each Loan available to the Agent for the Company on the relevant
Drawdown Date. 
  

	6.	 	UTILISATION—LETTERS OF CREDIT 

  

	6.1	 	Giving of Requests 

  

	(a)	 	The Company may request a Letter of Credit to be issued under Facility B by giving to the Agent a duly completed Request. 

  

	(b)	 	Unless the Agent otherwise agrees, the latest time for receipt by the Agent of a duly completed Request is 11.00 a.m. ten Business Days before the proposed Utilisation Date.

  

	(c)	 	Each Request is irrevocable. 

  

	6.2	 	Completion of Requests 

  
 A Request for a Letter of Credit will not be duly made unless: 
  

	 	(a)	 	it specifies that it is for a Letter of Credit and whether it is to be a Fronted LC or a Syndicate LC; 

  

	 	(b)	 	the Utilisation Date is a Business Day falling within the Availability Period for Facility B; 

  

	 	(c)	 	the amount of the Letter of Credit requested is: 

  

	 	(i)	 	a minimum amount of US$50,000,000 (or its equivalent in an Optional Currency); 

  

	 	(ii)	 	the maximum undrawn amount available under Facility B on the proposed Utilisation Date; or 

  

	 	(iii)	 	such other amount as the Agent may agree; 

  

	 	(d)	 	the proposed beneficiary is: 

  

	 	(i)	 	in respect of a Fronted LC, any of the EIB or a beneficiary incorporated in the UK, a member state of the EC or the United States of America; 

  

	 	(ii)	 	in respect of a Syndicate LC, the EIB; or 

  

	 	(iii)	 	any other beneficiary approved by all the Banks with a Facility B Revolving Credit Commitment; 

  

	 	(e)	 	the form of Letter of Credit is attached; 

  

 21 

	 	(f)	 	the expiry date of the Letter of Credit falls on or before the date falling five Business Days before the Facility B Final Maturity Date; 

  

	 	(g)	 	in respect of a Fronted LC, it specifies the name of the Fronting Bank and the Request is accompanied by confirmation from the relevant Bank that is has agreed to be Fronting Bank
for that Letter of Credit; and 

  

	 	(h)	 	the delivery instructions for the Letter of Credit are specified. 

  
 Only one Letter of Credit may be requested in a single Request. 
  

	6.3	 	Issue of Letter of Credit 

  

	(a)	 	The Agent must promptly notify the Fronting Bank (if relevant) and each relevant Bank of the details of the requested Letter of Credit and the amount of such Bank’s share of
that Letter of Credit. 

  

	(b)	 	The amount of each Bank’s share in a Letter of Credit will be equal to its Pro Rata Share of such Letter of Credit on the proposed Utilisation Date. 

 

	(c)	 	The Fronting Bank or Agent (as the case may be) is not obliged to issue any Letter of Credit if as a result: 

  

	 	(i)	 	the Fronting Bank or Agent would breach any law or regulation applicable to it; 

  

	 	(ii)	 	a Bank’s share in the outstanding Utilisations under Facility B would exceed its Facility B Commitment; or 

  

	 	(iii)	 	the outstanding Utilisations under Facility B would exceed the Total Facility B Commitments. 

  

	(d)	 	If the conditions set out in this Agreement have been met, then (as the case may be): 

  

	 	(i)	 	in respect of a Fronted LC, the Fronting Bank will issue the Letter of Credit on the proposed Utilisation Date; or 

  

	 	(ii)	 	in respect of a Syndicate LC, such Letter of Credit will, subject to the other terms of this Agreement, be issued by the Banks (via the Agent on behalf of the Banks) with a Facility
B Revolving Credit Commitment severally in their Pro Rata Shares on the proposed Utilisation Date. Each Bank irrevocably authorises the Agent to sign each Syndicate LC which is to be issued in accordance with this Agreement on its behalf without
further consent or consultation. 

  

	7.	 	LETTERS OF CREDIT 

  

	7.1	 	General 

  

	(a)	 	A Letter of Credit is repaid or prepaid to the extent that: 

  

	 	(i)	 	the Company provides cash cover for that Letter of Credit; 

  

	 	(ii)	 	the Company has made a payment under paragraph (b) of Clause 7.5 (Claims under a Letter of Credit) in respect of that Letter of Credit or the Company has made a

  

 22 

	 	 
reimbursement in respect of that Letter of Credit under paragraph (d) of Clause 7.6 (Indemnities); 

  

	 	(iii)	 	the maximum amount payable under the Letter of Credit is reduced in accordance with its terms; 

  

	 	(iv)	 	the Letter of Credit is returned by the beneficiary with his written confirmation that it is released and cancelled; or 

  

	 	(v)	 	the Fronting Bank (in respect of a Fronted LC) or (in respect of Syndicate LC) each of the Banks on whose behalf such Letter of Credit was issued is satisfied that it has no further
liability under that Letter of Credit. 

  
 The
amount by which a Letter of Credit is repaid or prepaid under sub-paragraphs (i) to (v) above is the amount of the relevant cash cover, payment, release, cancellation or reduction. 
  

	(b)	 	If any amount becomes payable under a Letter of Credit, the Fronting Bank (in respect of a Fronted LC) or (in respect of a Syndicate LC) the Agent on behalf of all the Banks on
whose behalf such Letter of Credit was issued will notify the Company, and the Company must repay or prepay that amount immediately. 

  

	(c)	 	The Company provides cash cover for a Letter of Credit if it pays an amount in the currency of the Letter of Credit to an interest-bearing account with a Finance Party in London in
the name of the Company and the following conditions are met: 

  

	 	(i)	 	(in respect of a Fronted LC, in which case the cash cover is to be provided for all the Banks) the account is with the Fronting Bank or (in respect of a Syndicate LC) with the
Agent; 

  

	 	(ii)	 	until no amount is or may be outstanding under that Letter of Credit, withdrawals from the account may only be made to pay to a Finance Party amounts due and payable to that Finance
Party in respect of that Letter of Credit under this Clause; and 

  

	 	(iii)	 	the Company has executed and delivered a security document over that account, in form and substance satisfactory to the Agent or the relevant Bank, creating a first ranking security
interest over that account. 

  
 Where cash cover is
to be provided to all the Banks on whose behalf a Syndicate LC is issued via the Agent, a Bank may require its share of the cash cover to be paid into its account instead of an account with the Agent. 
  

	(d)	 	The outstanding or principal amount of a Letter of Credit at any time is the maximum amount that is or may be payable by the relevant Fronting Bank or the Banks in respect of that
Letter of Credit at that time less any amount of cash cover (the Cash Cover Amount) provided in respect of that Letter of Credit which has not been applied in payment to the Fronting Bank or any Bank. 

  

	7.2	 	Revaluation 

  

	(a)	 	On the last day of each period of six months following the date of issue of a Letter of Credit issued in an Optional Currency (the Revaluation Date):

  

 23 

	 	(i)	 	the Agent shall calculate the Original Dollar Amount of the face value of the Letter of Credit (for which purpose the Original Dollar Amount shall be calculated using the
Agent’s Spot Rate of Exchange) (the New Value); and 

  

	 	(ii)	 	each relevant Bank’s participation in the Letter of Credit shall be increased or decreased (as the case may be) according to its Pro Rata Share of the New Value.

  

	(b)	 	The Company shall, within three Business Days of the Agent giving notice of any calculation under paragraph (a) above, prepay Facility B to the extent necessary to (i) remedy any
breach of Clause 2.6 (Limits) which results from the revaluation of a Letter of Credit under paragraph (a) above, or (ii) ensure a Bank’s share in the outstanding Utilisations under Facility B do not exceed its Facility B Commitments as a
result of a revaluation of a Letter of Credit under paragraph (a) above. 

  

	(c)	 	The Agent shall promptly notify each relevant Party of the determination of a revaluation of a Letter of Credit under this Agreement. 

  

	7.3	 	Assignments and transfers 

  
 The consent (such consent not to be unreasonably withheld) of the Agent (in the case of a Syndicate LC) or (in the case of a Fronted LC) the Fronting Bank
and (if required by the terms of the Letter of Credit) the beneficiary is required for any assignment or transfer of any Bank’s rights and obligations under this Agreement in relation to a Letter of Credit. 
  

	7.4	 	Fees in respect of Letters of Credit 

  

	(a)	 	Subject to paragraph (c), the Company must pay directly to the Fronting Bank a fronting fee in respect of each Fronted LC at a percentage rate per annum agreed between the Fronting
Bank and the Company from and including the date of issue of each Fronted LC to and including its Repayment Date, payable quarterly in arrear. 

  

	(b)	 	Subject to paragraph (c), the Company must pay to the Agent a Letter of Credit fee computed at a rate equal to the then applicable Margin for Facility B Revolving Credit Loans on
the outstanding amount of each Letter of Credit requested by it for the period from and including the date of the issue of that Letter of Credit until and including its Repayment Date. This fee will be distributed to the Banks according to each
Bank’s Pro Rata Share of the relevant Letter of Credit on its Utilisation Date, adjusted to reflect any assignment or transfer to or by that Bank in accordance with Clause 7.3 (Assignments and transfers). 

  

	(c)	 	The Letter of Credit fee in respect of any outstanding or principal amounts of a Letter of Credit for which the Company has provided cash cover shall be 0.05 per cent. per annum on
the Cash Cover Amount (as defined in Clause 7.1(d) (General) above). 

  

	(d)	 	Letter of Credit fee is payable quarterly in arrear and at the end of any shorter period that ends on the Repayment Date for that Letter of Credit. 

  

	7.5	 	Claims under a Letter of Credit 

  

	(a)	 	In the case of a Fronted LC, the Company and each Bank irrevocably and unconditionally authorises the Fronting Bank and in the case of a Syndicate LC, the Company irrevocably and
unconditionally authorises each Bank on whose behalf such Letter of Credit was issued to pay through the Agent any claim made or purported to be made under a Letter of Credit requested by the Company and which appears on its face to be in order (a
Letter of Credit Claim). 

  

 24 

	(b)	 	The Company must immediately on demand pay to the Agent, in the case of a Fronted LC for the account of the Fronting Bank or, in the case of a Syndicate LC, for the account of each
Bank on whose behalf such Letter of Credit was issued via the Agent an amount equal to the amount of any relevant Letter of Credit Claim. 

  

	(c)	 	In the case of a Fronted LC, the Company and each Bank acknowledges that the Fronting Bank and in the case of a Syndicate LC, the Company acknowledges that the Agent and each Bank
on whose behalf such Letter of Credit was issued: 

  

	 	(i)	 	is not obliged to carry out any investigation or seek any confirmation from any other person before paying a Letter of Credit Claim; and 

  

	 	(ii)	 	deals in documents only and will not be concerned with the legality of a claim or any underlying transaction or any available set-off, counterclaim or other defence of any person,

  
 and the Fronting Bank, the Agent and each such
Bank may assume that any demand, certificate, statement or document which appears on its face to be in order is correct and properly made. 
  

	(d)	 	The obligations of the Company and, in respect of any Fronted LC, each Bank under this Clause will not be affected by: 

  

	 	(i)	 	the sufficiency, accuracy or genuineness of any claim or any other document; or 

  

	 	(ii)	 	any incapacity of, or limitation on the powers of, any person signing a claim or other document. 

  

	(e)	 	A certificate signed by the Fronting Bank, the Agent or a Bank on whose behalf a Letter of Credit was issued by the Agent certifying the amount due to the Fronting Bank or such Bank
shall be prima facie evidence of the matters so certified. 

  

	7.6	 	Indemnities 

  

	(a)	 	The Company must immediately on demand indemnify the Fronting Bank (for a Fronted LC) or (for a Syndicate LC) the Agent and each Bank on whose behalf a Letter of Credit was issued
against any loss or liability which the Fronting Bank or the Agent or that Bank incurs under or in connection with any Letter of Credit requested by it, except to the extent that the loss or liability is directly caused by the gross negligence or
wilful misconduct of the Fronting Bank or the Agent or that Bank. 

  

	(b)        (i)	 	For a Fronted LC, each Bank must immediately on demand indemnify the Fronting Bank against its share of any loss or liability which the Fronting Bank incurs under or in connection
with any Letter of Credit issued by it and which at the date of demand has not been paid for by the Company, except to the extent that the loss or liability is directly caused by the gross negligence or wilful misconduct of the Fronting Bank.

  

	 	(ii)	 	For a Syndicate LC, each Bank (on whose behalf the Syndicate LC was issued) shall pay to the Agent on such date as the Agent shall specify the share of any Letter of Credit Claim,
for payment by the Agent to the beneficiary in accordance with that Letter of Credit, unless the Company has complied with Clause 7.5(b) (Claims under a Letter of Credit). 

  

 25 

	(c)	 	A Bank’s share of the liability or loss referred to in paragraph (b) above will be its Pro Rata Share of the relevant Letter of Credit on its Utilisation Date, adjusted to
reflect any subsequent assignment or transfer under this Agreement in accordance with Clause 7.3 (Assignments and transfers). 

  

	(d)	 	The Company must immediately on demand reimburse any Bank for any payment it makes to the Fronting Bank or to a beneficiary of a Letter of Credit under this Clause.

  

	(e)	 	The obligations of the Company and any Bank under this Clause are continuing obligations and will extend to the ultimate balance of all sums payable by the Company or relevant Bank
under or in connection with any Letter of Credit, regardless of any intermediate payment or discharge in whole or in part. 

  

	(f)	 	The obligations of the Company and any Bank under this Clause will not be affected by any act, omission or thing which, but for this provision, would reduce, release or prejudice
any of its obligations under this Clause (whether or not known to it or any other person). This includes: 

  

	 	(i)	 	any time or waiver granted to, or composition with, any person; 

  

	 	(ii)	 	any release of any person under the terms of any composition or arrangement; 

  

	 	(iii)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any person;

  

	 	(iv)	 	any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

  

	 	(v)	 	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of any person; 

  

	 	(vi)	 	any amendment (however fundamental) of a Finance Document or any other document or security; 

  

	 	(vii)	 	any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; or 

  

	 	(viii)	 	any insolvency or similar proceedings. 

  

	7.7	 	Bank as Fronting Bank 

  

	(a)	 	A Bank which is also the Fronting Bank shall be treated as a separate entity in those capacities and capable, as a Bank, of contracting with itself as the Fronting Bank.

  

	(b)	 	A Fronting Bank shall promptly provide the Agent with such information regarding each Fronted LC issued by it as the Agent may reasonably request. 

  

	7.8	 	Rights of contribution 

  
 The Company will not be entitled to any right of contribution or indemnity from any Finance Party in respect of any payment it may make under this Clause.

  

 26 

	8.	 	UTILISATION—SWINGLINE LOANS 

  

	8.1	 	Giving of Requests 

  

	(a)	 	The Company may borrow a Swingline Loan by giving to the Swingline Agent (copied to the Agent) a duly completed Request. 

  

	(b)	 	Unless the Swingline Agent otherwise agrees, the latest time for receipt by the Swingline Agent of a duly completed Request for a Swingline Loan is 10.00 a.m. (New York City time)
on the proposed Utilisation Date. 

  

	(c)	 	Each Request for a Swingline Loan must be sent to the Swingline Agent to its address as set out in Clause 36.2(c) (Address for notices). 

  

	(d)	 	Each Request for a Swingline Loan is irrevocable. 

  

	8.2	 	Completion of Requests 

  
 A Request for a Swingline Loan will not be regarded as having been duly completed unless: 
  

	 	(a)	 	it identifies that the Loan is a Swingline Loan; 

  

	 	(b)	 	the Utilisation Date is a Business Day falling within the Availability Period for Facility B; 

  

	 	(c)	 	the Term selected: 

  

	 	(i)	 	does not overrun the Facility B Final Maturity Date; 

  

	 	(ii)	 	is a period of not more than ten Business Days; and 

  

	 	(iii)	 	ends on a Business Day; 

  

	 	(d)	 	the amount of the Swingline Loan requested is: 

  

	 	(i)	 	a minimum of US$10,000,000 and an integral multiple of US$10,000,000 if the amount requested is less than US$30,000,000; 

  

	 	(ii)	 	the maximum undrawn amount available under this Agreement for Swingline Loans on the proposed Utilisation Date; or 

  

	 	(iii)	 	such other amount as the Swingline Agent or the Swingline Lenders may agree; and 

  

	 	(e)	 	the Swingline Loan is denominated in US Dollars. 

  
 Only one Swingline Loan may be requested in a Request. 
  

	8.3	 	Advance of Swingline Loan 

  

	(a)	 	The Swingline Agent must notify each Swingline Lender of the details of the requested Swingline Loan and the amount of its share in that Swingline Loan by 12.00 noon (New York City
time) on the proposed Utilisation Date. 

  

 27 

	(b)	 	The amount of each Swingline Lender’s share of the Swingline Loan will be its Pro Rata Share on the proposed Utilisation Date adjusted to take account of any limit applying
under this Clause 8 or 2.6 (Limits). 

  

	(c)	 	No Swingline Lender is obliged to participate in a Swingline Loan if as a result: 

  

	 	(i)	 	its share in the Swingline Loans would exceed its Swingline Commitment; or 

  

	 	(ii)	 	the outstanding Utilisations under Facility B would exceed the Total Facility B Commitments. 

  

	(d)	 	If the conditions set out in this Agreement have been met, each Swingline Lender must make its share in the Swingline Loan available to the Swingline Agent for the Company on the
Utilisation Date. 

  

	8.4	 	Currency 

  
 Notwithstanding any other term of this Agreement, Swingline Loans may only be denominated in US Dollars. 
  

	9.	 	SWINGLINE LOANS 

  

	9.1	 	Interest 

  

	(a)	 	The rate of interest on each Swingline Loan for each day during its Term is the higher of: 

  

	 	(i)	 	the prime commercial lending rate in US Dollars announced by the Swingline Agent and in force on that day; and 

  

	 	(ii)	 	0.50 per cent. per annum over the rate per annum determined by it to be the Federal Funds Rate on or about 1.00 p.m. (New York City time) on that day. 

  

	(b)	 	For this purpose, Federal Funds Rate means in relation to any day, the rate per annum equal to: 

  

	 	(i)	 	the weighted average of the rates on overnight Federal funds transactions with members of the US Federal Reserve System arranged by Federal funds brokers, as published for that day
(or, if that day is not a Business Day, for the immediately preceding Business Day) by the Federal Reserve Bank of New York; or 

  

	 	(ii)	 	if a rate is not published for that day or preceding day, the average of the quotations for that day on those transactions received by the Swingline Agent from three Federal funds
brokers of recognised standing selected by the Swingline Agent. 

  

	(c)	 	If any day during a Term is not a Business Day, the rate of interest on a Swingline Loan on that day will be the rate applicable on the immediately preceding Business Day.

  

	(d)	 	Except where it is provided to the contrary in this Agreement, the Company must pay accrued interest on each Swingline Loan made to it on the last day of its Term.

  

	(e)	 	Any other term of this Agreement relating to: 

  

	 	(i)	 	calculation of the rate of interest (but not interest on overdue amounts); or 

  

 28 

	 	(ii)	 	market disruption, 

  
 does not apply to Swingline Loans. 
  

	9.2	 	Term 

  
 Notwithstanding any other term of this Agreement, 
  

	 	(a)	 	each Swingline Loan has one Term only; and 

  

	 	(b)	 	the Term for a Swingline Loan must be selected in the relevant Request. 

  

	9.3	 	Partial payments 

  

	(a)	 	If the Swingline Agent receives a payment in respect of the Swingline Facility insufficient to discharge all the amounts then due and payable by the Company to the Swingline Lenders
under this Agreement, the Swingline Agent must apply that payment towards the obligations of the Company under the Finance Documents in respect of the Swingline Facility in the following order: 

  

	 	(i)	 	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Swingline Agent under the Finance Documents incurred in respect of the Swingline Facility;

  

	 	(ii)	 	secondly, in or towards payment pro rata of any accrued interest on a Swingline Loan due but unpaid under this Agreement; and 

  

	 	(iii)	 	thirdly, in or towards payment pro rata of the principal of any Swingline Loan due but unpaid under this Agreement. 

  

	(b)	 	The Swingline Agent must, if so directed by all the Swingline Lenders, vary the order set out in sub-paragraphs (a)(ii) and (iii) above, as appropriate. 

  

	(c)	 	This Clause 9.3 will override any appropriation made by the Company. 

  

	(d)	 	Any other term of this Agreement in relation to partial payments does not apply to the Swingline Facility. 

  

	9.4	 	Conditions of assignment or transfer 

  
 Notwithstanding any other term of this Agreement, each Bank must ensure that at all times its Overall Facility B Commitment is not less than: 

 

	 	(a)	 	its Swingline Commitment; or 

  

	 	(b)	 	if it does not have a Swingline Commitment, the Swingline Commitment of a Bank which is its Affiliate. 

  

	10.	 	TERM-OUT OPTION 

  

	(a)	 	The Company may, by notice to the Agent no more than 60 days and no less than 30 days before the Facility A Final Maturity Date, opt to convert Facility A, in whole or in part, into
a term loan facility. The giving of this notice (the Conversion Request) constitutes the exercise of the term-out option by the Company. 

  

 29 

	(b)	 	The Company may only exercise the term-out option once. 

  

	(c)	 	The Conversion Request shall specify the amount of outstanding Facility A Revolving Credit Loans which are to be converted to Term Loans. 

  

	(d)	 	With effect from the date of the exercise of the term-out option: 

  

	 	(i)	 	the Facility A Revolving Credit Loans specified in the Conversion Request shall convert into Term Loans; 

  

	 	(ii)	 	any Loan borrowed under Facility A after that exercise date will be drawn and treated as a Term Loan; 

  

	 	(iii)	 	any Facility A Revolving Credit Loan outstanding on the date of the exercise of the term-out option which is not converted into a Term Loan must be repaid on its Repayment Date and
in any case by no later than the last day of the Availability Period for Facility A; and 

  

	 	(iv)	 	the unutilised amount of the Total Facility A Commitments will be automatically cancelled at close of business on the last day of the Availability Period for Facility A.

  

	11.	 	REPAYMENT 

  

	11.1	 	Repayment of Revolving Credit Loans 

  

	(a)	 	The Company must repay each Revolving Credit Loan made to it in full on its Repayment Date. 

  

	(b)	 	Subject to the other terms of this Agreement, any amounts repaid under paragraph (a) above may be re-borrowed. 

  

	(c)	 	Any amount of any Revolving Credit Loan still outstanding on the relevant Final Maturity Date shall be repaid on that Final Maturity Date. 

  

	11.2	 	Repayment of Letters of Credit 

  

	(a)	 	The Company must repay each Letter of Credit issued on its behalf in full on the date stated in that Letter of Credit to be its expiry date in accordance with paragraph (a) of
Clause 7.1 (General). 

  

	(b)	 	Subject to the other terms of this Agreement, any amounts repaid under paragraph (a) above may be re-utilised. 

  

	(c)	 	Any Letter of Credit still outstanding on the Facility B Final Maturity Date shall be repaid on that date in accordance with paragraph (a) of Clause 7.1 (General).

  

	11.3	 	Repayment of Term Loans 

  

	(a)	 	The Company must repay each Term Loan on the Facility A Final Maturity Date. 

  

	(b)	 	Any amounts repaid under paragraph (a) above may not be re-utilised. 

  

	11.4	 	Repayment of Swingline Loans 

  

	(a)	 	The Company must repay each Swingline Loan made to it in full on its Repayment Date. 

  

 30 

	(b)	 	Subject to the other terms of this Agreement, any amounts repaid under paragraph (a) above may be re-utilised. 

  

	(c)	 	In the event and to the extent that a Swingline Loan is not repaid in accordance with paragraph (a) above, each Bank will, within four Business Days of a demand to that effect from
the Swingline Agent, pay to the Swingline Agent on behalf of the Swingline Lenders (which shall be deemed to be a drawing of that Bank’s Commitment) an amount equal to its Agreed Percentage of the principal amount outstanding of such Swingline
Loan and accrued interest (including default interest) thereon to the date of actual payment by such Bank (provided that no Bank shall be obliged to exceed its aggregate Facility B Commitment as a result of any such payment). The Company shall
forthwith reimburse the Banks (through the Agent) in full for each payment made by the Banks under this paragraph (c). Each amount the Company is required to reimburse to the Banks under this paragraph (c) shall be deemed to be an overdue amount (as
defined in Clause 13.5 (Default interest) which fell due for payment by the Company on the day on which the payment by the Banks giving rise to the reimbursement obligation was made and shall accrue default interest under Clause 13.5 (Default
interest) accordingly. 

  

	12.	 	PREPAYMENT AND CANCELLATION 

  

	12.1	 	Automatic cancellation of the Total Commitments 

  
 Subject to Clause 10 (Term-out option), the relevant Commitment of each Bank shall be automatically cancelled at close of business on the last day of the
relevant Availability Period. 
  

	12.2	 	Voluntary cancellation 

  
 The Company may, by giving not less than five days’ prior notice to the Agent, cancel the unutilised portion of the Total Commitments in whole or in
part (but, if in part, in a minimum Original Dollar Amount of US$10,000,000 (or its comparable amounts in any Optional Currency) or the balance of the unutilised Total Commitments, whichever is lower). Any cancellation in part shall be applied
against the Commitment of each Bank pro rata. 
  

	12.3	 	Voluntary Prepayment 

  
 The Company may, on giving not less than ten days’ prior notice to the Agent, prepay all or any part of the Utilisations (but, if in part, in a
minimum Original Dollar Amount of US$10,000,000 (or its comparable amounts in any Optional Currency) or the balance of the outstanding Utilisations under the relevant Facility, whichever is lower). Any partial prepayment of the Utilisations shall be
applied pro rata against the participation of each Bank in that Utilisation. 
  

	12.4	 	Additional right of prepayment and cancellation 

  
 If the Company is required to pay any amount to or for the account of a Bank under Clause 16 (Taxes) or Clause 18 (Increased Costs) the Company may,
whilst the circumstances giving rise to the requirement continue, serve a notice of prepayment and cancellation on that Bank through the Agent. On the date falling five Business Days after the date of service of the notice: 
  

	 	(a)	 	the Company shall prepay that Bank’s participation in all the Utilisations together with all other amounts payable by it to that Bank under this Agreement; and

  

	 	(b)	 	the Bank’s Commitments shall be cancelled. 

  

 31 

	12.5	 	Miscellaneous provisions 

  

	(a)	 	Any notice of prepayment and/or cancellation under this Agreement is irrevocable. The Agent shall notify the Banks promptly of receipt of any such notice. 

 

	(b)	 	All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid. 

  

	(c)	 	No prepayment or cancellation is permitted except in accordance with the express terms of this Agreement. 

  

	(d)	 	Subject to the terms of this Agreement, any amount of a Utilisation repaid under this Agreement may subsequently be re-borrowed. For the avoidance of doubt, a Term Loan repaid or
prepaid under this Agreement may not subsequently be re-borrowed. 

  

	(e)	 	No amount of any Commitment cancelled under this Agreement may subsequently be reinstated. 

  

	12.6	 	Mandatory prepayment—change of control 

  

	(a)	 	For the purposes of this Clause: 

  
 a change of control occurs if any person or group of persons acting in concert gains control of the Company; 
  
 acting in concert has the meaning given to it in the City Code on
Takeovers and Mergers; and 
  
 control has the meaning
given to it in section 416 of the Income and Corporation Taxes Act 1988. 
  

	(b)	 	The Company must promptly notify the Agent if it becomes aware of any change of control. 

  

	(c)	 	Within 30 days after the earlier of notification by the Company to the Agent, or the Agent to the Banks, of a change of control, any Bank may, by notice from the Agent to the
Company: 

  

	 	(i)	 	cancel that Bank’s Commitments; and 

  

	 	(ii)	 	declare all that Bank’s Pro Rata Share in outstanding Utilisations, together with accrued interest and all other amounts accrued under the Finance Documents, to be immediately
due and payable. 

  
 Any such notice will take
effect in accordance with its terms. 
  

	12.7	 	Mandatory prepayment—securitisation proceeds 

  
 To the extent a securitisation by a UK Subsidiary is permitted under, and a prepayment is required by, Clause 21.13(e) (Restriction on Borrowings of UK
Subsidiaries): 
  

	 	(a)	 	if any UK Subsidiary receives proceeds from any securitisation of assets of the Group or transaction of a similar effect (the Securitisation Proceeds), the Company shall
notify the Agent promptly after receipt of those proceeds; 

  

 32 

	 	(b)	 	the Company shall promptly following receipt of those proceeds by the relevant member of the Group repay or prepay the Utilisations by an amount equal to 75 per cent. of the
Securitisation Proceeds (less any fees, costs and expenses relating to the relevant issue of debt securities) and that repayment or prepayment shall be applied against the participation of each Bank in each such Utilisation pro rata as between
Facility A and Facility B; and 

  

	 	(c)	 	the Total Commitments shall be cancelled by an amount equal to 75 per cent. of the Securitisation Proceeds against the Commitments of each Bank pro rata as between Facility A and
Facility B. 

  

	12.8	 	Mandatory prepayment—proceeds of new Group indebtedness 

  
 To the extent Borrowings by UK Subsidiaries are permitted under, and a prepayment is required by, paragraphs (d) and (g) of Clause 21.13 (Restriction on
Borrowings of UK Subsidiaries): 
  

	 	(a)	 	if any UK Subsidiary incurs any Borrowings after the date of this Agreement, the Company shall notify the Agent promptly after receipt of those proceeds; 

 

	 	(b)	 	the Company shall promptly following receipt by the relevant UK Subsidiary of any proceeds from the relevant Borrowings, repay or prepay the Utilisations by an amount equal to 100
per cent. of those proceeds (less any fees, costs and expenses relating to the Borrowings) and that repayment or prepayment shall be applied against the participation of each Bank in each such Utilisation pro rata as between Facility A and Facility
B; and 

  

	 	(c)	 	the Total Commitments shall be cancelled by an amount equal to 100 per cent. of the proceeds referred to in paragraph (a) above against the Commitments of each Bank pro rata as
between Facility A and Facility B. 

  

	13.	 	INTEREST 

  

	13.1	 	Interest rate 

  
 Subject to Clause 13.5 (Default interest), the rate of interest on each Loan (other than a Swingline Loan) for its Term is the rate per annum determined
by the Agent to be the aggregate of the applicable: 
  

	 	(a)	 	Margin; 

  

	 	(b)	 	IBOR; and 

  

	 	(c)	 	Mandatory Cost. 

  

	13.2	 	Margin adjustment 

  
 Any reduction or increase in the Margin during the Term of a Loan shall be determined on the Business Day immediately following receipt by the Agent of a
notice referred to in Clause 21.17 (Rating change) from the Company (or any equivalent notice from a Finance Party) and shall take effect from the date on which the relevant change in long term credit rating assigned to the Company by S&P,
Moody’s or any other rating agency approved for this purpose by the Majority Banks (as the case may be) was first published. 
  

 33 

	13.3	 	Non-Business Days 

  
 If a Term would otherwise end on a day which is not a Business Day, that Term shall instead end on the next Business Day in that calendar month (if there
is one) or the preceding Business Day (if there is not). 
  

	13.4	 	Due dates 

  
 Except as otherwise provided in this Agreement, accrued interest on each Utilisation is payable by the Company on the last day of its Term and also, if
the Term is longer than 6 months, on the date falling at 6 monthly intervals after the first day of that Term. 
  

	13.5	 	Default interest 

  

	(a)	 	If the Company fails to pay any amount payable by it under the Finance Documents, it shall forthwith on demand by the Agent pay interest on the overdue amount from the due date up
to the date of actual payment, both before, on and after judgement, at a rate (the default rate) determined by the Agent to be one per cent. per annum above the rate which would have been payable if the overdue amount had, during the period
of non-payment, constituted a Utilisation in the currency of the overdue amount for such successive Terms of such duration as the Agent may determine (each a Designated Term), that default rate applying to those overdue amounts instead of the
rate under Clause 13.1 (Interest rate). 

  

	(b)	 	The default rate will be determined on each Business Day or the first day of the relevant Designated Term, as appropriate. 

  

	(c)	 	If the Agent is informed that deposits in the currency of the overdue amount are not at the relevant time being made available by the Reference Banks to leading banks in the London
interbank market, the default rate will be determined by reference to the cost of funds to the Agent from whatever sources it reasonably selects, after consultation with the Reference Banks. 

  

	(d)	 	Default interest will be compounded at the end of each Designated Term. 

  

	13.6	 	Notification of rates of interest 

  
 The Agent shall promptly notify each relevant Party of the determination of a rate of interest under this Agreement. 
  

	13.7	 	Terms 

  

	(a)	 	Each Revolving Credit Loan has one Term only which will commence on its Drawdown Date. 

  

	(b)	 	Each Term Loan has successive Terms, the first of which will commence on its Drawdown Date. 

  

	(c)	 	The Company will select the Term for a Loan in the relevant Request. In respect of a Term Loan which has been borrowed, the Company will select the Term in a notice to be delivered
to the Agent by no later than the date falling three Business Days before the first day of that new Term. If the Company does not deliver a notice, the Term will be three months. 

  

	(d)	 	Subject to the following provisions of this Clause, each Term for a Loan will be one, two, three or six months. 

  

 34 

	(e)	 	If a Term for a Facility A Loan would otherwise overrun the Facility A Final Maturity Date it shall be shortened so that it ends on the relevant Facility A Final Maturity Date.

  

	(f)	 	If a Term for a Facility B Loan would otherwise overrun the Facility B Final Maturity Date it shall be shortened so that it ends on the Facility B Final Maturity Date.

  

	14.	 	OPTIONAL CURRENCIES 

  

	14.1	 	Selection 

  

	(a)	 	The Company shall select the currency of a Utilisation in the relevant Request. 

  

	(b)	 	The currency of each Utilisation must be US Dollars or an Optional Currency. 

  

	(c)	 	The Company may not choose a currency if as a result the Utilisations would be denominated at any time in more than 3 currencies. 

  

	(d)	 	The Agent shall notify each Bank of the currency and the Original Dollar Amount of each Utilisation and the applicable Agent’s Spot Rate of Exchange promptly after they are
ascertained. 

  

	14.2	 	Revocation of currency 

  
 If, before 9.30 a.m. on any Rate Fixing Day, the Agent receives notice from a Bank that: 
  

	 	(a)	 	it is impracticable for the Bank to fund its participation in the relevant Utilisation in the relevant Optional Currency during its Term in the ordinary course of business in the
London interbank market; and/or 

  

	 	(b)	 	the use of the proposed Optional Currency might contravene any law or regulation, 

  
 the Agent shall give notice to the Company and to the Banks to that effect before 11.00 a.m. on that day. In this event:

  

	 	(i)	 	the Company and the Banks may agree that the drawdown will not be made; or 

  

	 	(ii)	 	in the absence of agreement, that Bank’s participation in the Utilisation (or, if more than one Bank is similarly affected, those Banks’ participations in the Utilisation)
shall be treated as a separate Utilisation denominated in US Dollars during the relevant Term. 

  

	14.3	 	Optional Currency equivalents 

  
 The equivalent in US Dollars of a Utilisation or part of a Utilisation in an Optional Currency for the purposes of calculating: 
  

	 	(a)	 	whether any limit under this Agreement has been exceeded; 

  

	 	(b)	 	the amount of a Utilisation; 

  

	 	(c)	 	the share of a Bank in a Utilisation; 

  

	 	(d)	 	the amount of any repayment of a Utilisation; or 

  

	 	(e)	 	the undrawn amount of a Bank’s Commitment, 

  

 35 

 is its Original Dollar Amount. 
  

	14.4	 	Term Loans—change of currency 

  

	(a)	 	A Term Loan will remain denominated in the same currency through successive Terms, unless the currency is changed under paragraph (c) below. 

  

	(b)	 	The Company may change the currency of a Term Loan with effect from the start of a Term by giving notice to the Agent by no later than the date falling three Business Days before
the first day of that new Term Loan. The Term Loan will remain denominated in that currency until it is changed again under this Clause. 

  

	(c)	 	If a Term Loan is to be denominated in different currencies during successive Terms: 

  

	 	(i)	 	(unless the Agent and the Company agree otherwise in accordance with paragraph (d) below), the Company must repay that Term Loan on the last day of its current Term in the currency
in which it is then denominated (the old currency); and 

  

	 	(ii)	 	the Banks must, subject to the terms of this Agreement, re-advance the Term Loan in the currency in which the Company requires the Term Loan to be denominated for the next Term (the
new currency). 

  
 The amount of the Loan in
the new currency will be calculated by reference to its Original Dollar Amount. 
  

	(d)	 	Alternatively, if the Agent and the Company agree: 

  

	 	(i)	 	the Agent may apply the amount (or so much of that amount as is necessary) of the Term Loan in the new currency to purchase an amount of the old currency sufficient to discharge the
obligation of the Company to repay the Term Loan in the old currency; and 

  

	 	(ii)	 	the Agent must apply any amount of the old currency purchased under subparagraph (i) above towards repaying the Term Loan in the old currency. 

  

	(e)	 	If the amount purchased by the Agent pursuant to paragraph (d) above is less than the amount required to be repaid by the Company the Agent shall promptly notify the Company and the
Company shall, on the date that the Term Loan is due to be repaid in the old currency, pay to the Agent an amount in the old currency equal to the difference. 

  

	(f)	 	If the day on which the old currency is due to be repaid is not also a Business Day for the new currency: 

  

	 	(i)	 	the Agent must notify the Company and the Banks promptly; 

  

	 	(ii)	 	the Term Loan will remain in the old currency until the next day which is a Business Day for both the old and the new currencies; and 

  

	 	(iii)	 	during this period, the Term Loan will have Terms running from one Business Day to the next Business Day. 

  

	(g)	 	The Company must indemnify the Agent against any loss or liability incurred by the Agent (acting reasonably) as a result of any foreign exchange contract entered into for the
purpose of this Clause. 

  

 36 

	14.5	 	Term Loans—continuing in same Optional Currency 

  

	(a)	 	If a Term Loan is to be denominated in the same Optional Currency during two successive Terms, the Agent must calculate the amount of the Term Loan in the Optional Currency for the
second of those Terms. 

  

	(b)	 	The amount of the Term Loan in the Optional Currency for the second Term will be the amount determined by notionally converting into that Optional Currency the Original Dollar
Amount of the Term Loan on the basis of the Agent’s Spot Rate of Exchange one Business Day before the Rate Fixing Day for that Term. 

  

	(c)	 	If the amount calculated is less than the existing amount of that Term Loan in the Optional Currency during the first Term, the Agent shall promptly notify the Company and the
Company must pay, subject to paragraph (e) below, on the last day of the first Term an amount equal to the difference. 

  

	(d)	 	If the amount calculated is more than the existing amount of that Term Loan in the Optional Currency during the first Term, each Bank must (unless a Default is then outstanding)
pay, subject to paragraph (e) below, on the last day of the first Term its Pro Rata Share of the difference. 

  

	(e)	 	If the calculation made by the Agent under paragraph (a) above shows that the amount of the Term Loan in the Optional Currency has increased or decreased by less than five per cent.
since the first Term or (if later) the most recent adjustment under paragraph (c) or (d) above, no payment is required under paragraph (c) or (d) above. 

  

	14.6	 	Notification of rates and amounts 

  
 The Agent shall promptly notify each Party of any applicable Agent’s Spot Rate of Exchange or Original Dollar Amount. 
  

	15.	 	PAYMENTS 

  

	15.1	 	Place 

  
 All payments by the Company or a Bank under the Finance Documents shall be made to the Agent to its account at such office or bank as it may notify to the
Company or that Bank for this purpose. 
  

	15.2	 	Funds 

  
 Payments under the Finance Documents to the Agent shall be made for value on the due date at such times and in such funds as the Agent may specify to the
Party concerned as being customary at the time for the settlement of transactions in the relevant currency in the place for payment. 
  

	15.3	 	Distribution 

  

	(a)	 	Each payment received by the Agent under this Agreement for another Party shall, subject to paragraphs (b) and (c) below, be made available by the Agent to that Party by payment (on
the date and in the currency and funds of receipt) to its account with such office or bank: 

  

	 	(i)	 	in the principal financial centre of the relevant currency; or 

  

 37 

	 	(ii)	 	in the case of euro units or national currency units, in the principal financial centre of a Participating Member State or London, 

  
 as it may notify to the Agent for this purpose by not less than 5 Business
Days’ prior notice. 
  

	(b)	 	The Agent may apply any amount received by it for the Company in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the Company under
the Finance Documents. 

  

	(c)	 	Where a sum is to be paid under the Finance Documents to the Agent for the account of another Party, the Agent is not obliged to pay that sum to that Party until it has established
that it has actually received that sum. The Agent may, however, assume that the sum has been paid to it in accordance with this Agreement and, in reliance on that assumption, make available to that Party a corresponding amount. If the sum has not
been made available but the Agent has paid a corresponding amount to another Party, that Party shall forthwith on demand refund the corresponding amount to the Agent together with interest on that amount from the date of payment to the date of
refund, calculated at a rate determined by the Agent to reflect its cost of funds. 

  

	15.4	 	Currency 

  

	(a)	 	A repayment or prepayment of a Utilisation or any part of a Utilisation is payable in the currency in which the Utilisation is denominated on its due date. 

 

	(b)	 	Interest is payable in the currency in which the relevant amount in respect of which it is payable is denominated. 

  

	(c)	 	Amounts payable in respect of costs, expenses, taxes and the like are payable in the currency in which they are incurred. 

  

	(d)	 	Any other amount payable under the Finance Documents is, except as otherwise provided in this Agreement, payable in US Dollars. 

  

	15.5	 	Set-off and counterclaim 

  
 All payments made by the Company under the Finance Documents shall be made without set-off or counterclaim. 
  

	15.6	 	Non-Business Days 

  

	(a)	 	If a payment under the Finance Documents is due on a day which is not a Business Day, the due date for that payment shall instead be the next Business Day in the same calendar month
(if there is one) or the preceding Business Day (if there is not). 

  

	(b)	 	During any extension of the due date for payment of any principal under this Agreement interest is payable on the principal at the rate payable on the original due date.

  

	15.7	 	Partial payments 

  

	(a)	 	If the Agent receives a payment insufficient to discharge all the amounts then due and payable by the Company under the Finance Documents, the Agent shall apply that payment towards
the obligations of the Company under the Finance Documents in the following order: 

  

 38 

	 	(i)	 	first, in or towards payment of any unpaid costs and expenses of the Agent under the Finance Documents; 

  

	 	(ii)	 	secondly, in or towards payment pro rata of any accrued fees due but unpaid under Clause 24.2 (Commitment fee) and Clause 24.3 (Utilisation fee); 

  

	 	(iii)	 	thirdly, in or towards payment pro rata of any accrued interest or Letter of Credit fee (as the case may be) due but unpaid under this Agreement; 

  

	 	(iv)	 	fourthly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and 

  

	 	(v)	 	fifthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

  

	(b)	 	The Agent shall, if so directed by all the Banks, vary the order set out in subparagraphs (a)(ii) to (v) above. 

  

	(c)	 	Paragraphs (a) and (b) above shall override any appropriation made by the Company. 

  

	15.8	 	Netting of payments 

  

	(a)	 	If on any date an amount (the first amount) is to be advanced or paid by a Bank under this Agreement and an amount (the second amount) is due from the Company to that
Bank under the Finance Documents, the Company instructs that Bank to apply the first amount in or towards payment of the second amount. 

  

	(b)	 	The relevant Bank shall remain obliged to advance any excess (or, as the case may be, the Company shall remain obliged to pay any shortfall) in accordance with this Clause 15.
Nothing in this Clause 15.8 shall be effective to create a charge. 

  

	16.	 	TAXES 

  

	16.1	 	Gross-up 

  
 All payments by the Company under the Finance Documents shall be made free and clear of and without deduction for or on account of any taxes levied or
imposed by or on behalf of the UK or any taxing authority thereof or therein except to the extent that the Company is required by law to make payment subject to any taxes. If any tax or amounts in respect of tax must be deducted from any amounts
payable or paid by the Company, or paid or payable by the Agent to a Bank, under the Finance Documents, the Company shall pay such additional amounts as may be necessary to ensure that the relevant Bank receives a net amount equal to the full amount
which it would have received had payment not been made subject to tax. 
  

	16.2	 	Tax receipts 

  
 All taxes required by law to be deducted or withheld by the Company from any amounts paid or payable under the Finance Documents shall be paid by the
Company when due and the Company shall, within 30 days of the payment being made, deliver to the Agent for the relevant Bank an original or certified copy of an official receipt or such other evidence, if any, as is then customary, evidencing that
such deduction or withholding has been made and has been accounted for to the appropriate authorities. 
  

 39 

	16.3	 	Qualifying Banks 

  

	(a)	 	If, otherwise than as a result of the introduction of, change in, or change in the interpretation, administration or application of, any law, treaty or regulation or any practice or
concession of the UK Inland Revenue occurring after the date of this Agreement, a Bank is not or has ceased to be a Qualifying Bank or is not or has ceased to be beneficially entitled to all interest received by it in respect of advances made by it
under this Agreement, the Company will not be liable to pay to or for the account of that Bank under Clause 16.1 (Gross-up) any amount in respect of taxes levied or imposed by the UK or any taxing authority of or in the UK in excess of the amount it
would have been obliged to pay if that Bank had been, or had not ceased to be a Qualifying Bank and had been beneficially entitled to all interest received by it in respect of advances made by it under this Agreement. 

  

	(b)	 	Each Bank warrants and represents to the Company on the date of this Agreement or (if later) on the date on which it becomes a Party that it is a Qualifying Bank and is beneficially
entitled to all interest receivable by it in respect of advances made by it under this Agreement. 

  

	(c)	 	Each Bank which ceases to be a Qualifying Bank or which ceases to be beneficially entitled to interest received by it in respect of advances made by it under this Agreement will
notify the Company forthwith upon becoming aware that it has so ceased. 

  

	16.4	 	Tax Credit 

  

	(a)	 	If the Company makes a payment pursuant to Clause 16.1 (Gross-up) for the account of any Bank and that Bank has received or been granted a credit against, or relief or remission or
repayment of, any tax paid or payable by it (a Tax Credit) which is attributable to that payment or the corresponding payment under the Finance Document that Bank shall, to the extent that it can do so without prejudice to the retention of
the amount of such credit, relief, remission or repayment, pay to the Company such amount as the Bank shall have reasonably determined to be attributable to such payments and which will leave the Bank (after such payment) in no better or worse
position than it would have been if the Company had not been required to make any deduction or withholding. 

  

	(b)	 	Nothing in this Clause 16.4 shall interfere with the right of a Bank to arrange its tax affairs in whatever manner it thinks fit and without limiting the foregoing no Bank shall be
under any obligation, except as expressly stated in sub-clause (a) above, to claim a Tax Credit or to claim a Tax Credit in priority to any other claims, relief, credit or deduction available to it. No Bank shall be obliged to disclose any
information relating to its tax affairs or any computations in respect thereof. 

  

	16.5	 	Tax indemnity 

  
 In this Clause 16.5, Protected Party means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on
account of tax in relation to a sum received or receivable (or any sum deemed for the purposes of tax to be received or receivable) under a Finance Document. 
  

	 	(a)	 	The Company shall (within three Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines
will be or has been (directly or indirectly) suffered for or on account of tax by that Protected Party in respect of a Finance Document. 

  

	 	(b)	 	Paragraph (a) above shall not apply: 

  

 40 

	 	(i)	 	with respect to any tax assessed on a Finance Party: 

  

	 	(A)	 	under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as
resident for tax purposes; or 

  

	 	(B)	 	under the law of the jurisdiction in which that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction,

  
 if that tax is imposed on or calculated by
reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or 
  

	 	(ii)	 	to the extent a loss, liability or cost: 

  

	 	(A)	 	is compensated for by an increased payment under Clause 16.1 (Gross-up) or 

  

	 	(B)	 	would have been compensated for by an increased payment under Clause 16.1 (Gross-up) but was not so compensated solely because one of the exclusions in Clause 16.3(a) (Qualifying
Banks) applied. 

  

	 	(c)	 	A Protected Party making, or intending to make a claim under paragraph (a) above shall promptly notify the Agent of the event which will give, or has given, rise to the claim,
following which the Agent shall notify the Company. 

  

	 	(d)	 	A Protected Party shall, on receiving a payment from a Company under this Clause 16.5, notify the Agent. 

  

	17.	 	MARKET DISRUPTION 

  

	17.1	 	Market disturbance 

  

	(a)	 	If IBOR is to be determined by reference to the Reference Banks and a Reference Bank does not supply an offered rate by 11.30 a.m. on the applicable Rate Fixing Day, the applicable
IBOR shall, subject to paragraph (b) below, be determined on the basis of the quotations of the remaining Reference Banks. 

  

	(b)	 	If, in relation to any proposed Loan: 

  

	 	(i)	 	IBOR is to be determined by reference to the Reference Banks and no, or only one, Reference Bank supplies a rate by 11.30 a.m. on the applicable Rate Fixing Day for the purposes of
determining the applicable IBOR; or 

  

	 	(ii)	 	the Agent otherwise determines (which determination, made by the Agent acting reasonably, shall be conclusive and binding on all parties) that adequate and fair means do not exist
for ascertaining the applicable IBOR, 

  
 the Agent
shall promptly notify the Company and the relevant Banks of the fact and that this Clause 17 is in operation. 
  

 41 

	17.2	 	Alternative rates 

  
 If the Agent gives a notice under Clause 17.1 (Market disturbance): 
  

	 	(a)	 	the Company and the Banks may (through the Agent) agree that in the case of a Loan which has not been borrowed, that Loan shall not be borrowed; or 

  

	 	(b)	 	in the absence of agreement, a Loan (if it has not been borrowed) shall still be made: and 

  

	 	(i)	 	the Term of the Loans concerned shall be one month; and 

  

	 	(ii)	 	during the Term of each Loan the rate of interest applicable to that Loan shall be the applicable Margin plus the Mandatory Cost plus the rate per annum which is expressed as a
percentage rate per annum of the cost to the Bank concerned of funding that Loan from whatever sources it may reasonably select, which rate shall be notified by the Bank concerned to the Agent before that last date of such Term.

  

	18.	 	INCREASED COSTS 

  

	18.1	 	Increased costs 

  

	(a)	 	Subject to Clause 18.2 (Exceptions), the Company shall forthwith on demand by a Finance Party or any of its Affiliates pay that Finance Party the amount of any increased cost
incurred by it as a result of: 

  

	 	(i)	 	the introduction of, or any change in, or any change in the interpretation or application of, any law or regulation (including any relating to taxation or reserve asset, special
deposit, cash ratio, liquidity or capital adequacy requirements or any other form of banking or monetary control); or 

  

	 	(ii)	 	compliance with any law or regulation made after the date of this Agreement. 

  

	(b)	 	In this Agreement increased cost means: 

  

	 	(i)	 	an additional cost incurred by a Finance Party or any of its Affiliates as a result of it having entered into, or performing, maintaining or funding its obligations under, this
Agreement; or 

  

	 	(ii)	 	that portion of an additional cost incurred by a Finance Party or any of its Affiliates in making, funding or maintaining all or any advances comprised in a class of advances formed
by or including the participations in the Utilisations made or to be made under this Agreement as is attributable to it making, funding or maintaining those participations; or 

  

	 	(iii)	 	a reduction in any amount payable to a Finance Party or any of its Affiliates or the effective return to a Finance Party or any of its Affiliates under this Agreement or on its
capital; or 

  

	 	(iv)	 	the amount of any payment made by a Finance Party or any of its Affiliates, or the amount of interest or other return foregone by a Finance Party or any of its Affiliates,
calculated by reference to any amount received or receivable by a Finance Party or any of its Affiliates from any other Party under this Agreement. 

  

 42 

	18.2	 	Exceptions 

  
 Clause 18.1 (Increased costs) does not apply to any increased cost: 
  

	 	(a)	 	compensated for by the payment of the Mandatory Cost; 

  

	 	(b)	 	attributable to any tax or amounts in respect of tax which must be deducted from any amounts payable or paid by the Company or payable or paid by the Agent to a Finance Party or any
of its Affiliates under the Finance Documents; 

  

	 	(c)	 	attributable to any change in the rate of tax on the overall net income, profits or gains of a Bank (or the overall net income, profits or gains of a division or branch of the Bank)
imposed in the jurisdiction in which its principal office or Facility Office is situate. 

  

	19.	 	ILLEGALITY AND MITIGATION 

  

	19.1	 	Illegality 

  
 If it is or becomes unlawful in any jurisdiction for a Bank to give effect to any of its obligations as contemplated by this Agreement or to fund or
maintain its participation in any Utilisation, then: 
  

	 	(a)	 	the Bank may notify the Company through the Agent accordingly; and 

  

	 	(b)        (i)	 	the Company shall to the extent required and within the period allowed by law or regulation or, if no period is allowed by law or regulation, forthwith prepay that Bank’s
participation in all the Utilisations together with all other amounts payable by it to that Bank under this Agreement; and 

  

	 	(ii)	 	the Bank’s Commitments shall be cancelled. 

  

	19.2	 	Mitigation 

  
 Notwithstanding the provisions of Clauses 16 (Taxes), 18.1 (Increased costs) and 19.1 (Illegality), if in relation to a Bank or (as the case may be) the
Agent circumstances arise which would result in: 
  

	 	(a)	 	any deduction, withholding or payment of the nature referred to in Clause 16 (Taxes); or 

  

	 	(b)	 	any increased cost of the nature referred to in Clause 18.1 (Increased costs); or 

  

	 	(c)	 	a notification pursuant to 19.1 (Illegality), 

  
 then without in any way limiting, reducing or otherwise qualifying the rights of that Bank or the Agent, that Bank shall upon becoming aware of the same
notify the Agent thereof (whereupon the Agent shall notify the Company) and such Bank shall use reasonable endeavours to transfer its participation in the Facility and, in the case of the Agent or that Bank, its rights hereunder and under the
Finance Documents to another financial institution or Facility Office not affected by the circumstances having the results set out in (a), (b) or (c) above and shall otherwise take such reasonable steps as may be open to it to mitigate the effects
of such circumstances provided that such Bank or the Agent (as the case may be) shall not be under any obligation to take any such action if, in its reasonable opinion, to do so 
  

 43 

 might have a material adverse effect upon its business, operations or financial condition or might
involve it in any unlawful activity or any activity that is contrary to any request, guidance or directive of any competent authority (whether or not having the force of law) or (unless indemnified to its satisfaction) might involve it in any
expense or tax disadvantage. 
  

	20.	 	REPRESENTATIONS AND WARRANTIES 

  

	20.1	 	Representations and warranties 

  
 The Company (in respect of itself and the Group) makes the representations and warranties set out in this Clause 20 (Representations and warranties) to
each Finance Party. 
  

	20.2	 	Status 

  

	(a)	 	It is a limited liability company, duly incorporated and validly existing under the laws of the jurisdiction of its incorporation; and 

  

	(b)	 	each member of the Group has the power to own its assets and carry on its business as it is being conducted. 

  

	20.3	 	Powers and authority 

  
 It has the power to enter into and perform, and has taken all necessary action to authorise the entry into, performance and delivery of, the Finance
Documents to which it is or will be a party and the transactions contemplated by those Finance Documents. 
  

	20.4	 	Legal validity 

  
 Each Finance Document to which it is or will be a party constitutes, or when executed in accordance with its terms will constitute, its legal, valid and
binding obligation, enforceable (subject to the Reservations) in accordance with its terms. 
  

	20.5	 	Non-conflict 

  
 The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with: 
  

	 	(a)	 	any law or regulation or judicial or official order; or 

  

	 	(b)	 	the constitutional documents of any member of the Group; or 

  

	 	(c)	 	to the best of the knowledge, information and belief of its Directors, any document which is binding upon any member of the Group or any asset of any member of the Group, to an
extent or in a manner which would have a material adverse effect on its ability to perform its obligations under this Agreement. 

  

	20.6	 	No default 

  

	(a)	 	No Default is outstanding or would result from the making of any Utilisation; and 

  

	(b)	 	no other event is outstanding which constitutes (or, with the giving of notice, lapse of time, determination of materiality or the fulfilment of any other applicable condition or
any combination of the foregoing, is reasonably likely to constitute) a default under any document which is binding on any member of the Group or any asset of any member of the Group to an 

  

 44 

 extent or in a manner which might have a material adverse effect on its ability to perform its
obligations under the Finance Documents. 
  

	20.7	 	Authorisations and admissibility in evidence 

  
 All authorisations required: 
  

	 	(a)	 	in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by, the Finance Documents; and 

  

	 	(b)	 	to make the Finance Documents admissible in evidence in England and Wales, 

  
 have been obtained or effected (as appropriate) and are in full force and effect. 
  

	20.8	 	Licences 

  
 Each member of the Group which requires a Licence for the conduct of its business has been duly licensed. 
  

	20.9	 	Accounts 

  
 The audited consolidated accounts of the Group most recently delivered to the Agent (which in respect of the Company only, at the date of this Agreement,
are the Original Group Accounts): 
  

	 	(a)	 	have been prepared in accordance with accounting principles and practices generally accepted in the United Kingdom consistently applied; and 

  

	 	(b)	 	fairly represent the consolidated financial condition of the Group as at the date to which they were drawn up. 

  

	20.10	 	Litigation 

  
 Save as disclosed in writing to the Agent prior to the date of this Agreement, no litigation, arbitration or administrative proceedings in relation to any
member of the Group are current or, to its knowledge, pending or threatened, which are reasonably expected to be adversely determined and which would, if adversely determined, be likely to have a material adverse effect on the ability of the Company
to perform its obligations under this Agreement. 
  

	20.11	 	Information 

  

	(a)	 	All of the factual information (including all information relating to the Company provided in the information memorandum dated May, 2003 (the Information Memorandum))
supplied by it to the Agent in connection with the Finance Documents is true in all material respects and not misleading in any respect and there are no facts or matters not disclosed in writing to the Agent the omission of which makes any such
factual information incorrect or misleading in any respect. 

  

	(b)	 	Nothing has occurred since the date the information was provided which renders the information contained in it untrue or misleading in any material respect and which, if disclosed,
may affect the decision of a person considering whether to enter into this Agreement. 

  

 45 

	(c)	 	The financial projections contained in the Information Memorandum have been prepared as at their date, on the basis of recent historical information and assumptions believed by the
Company to be reasonable. 

  

	(d)	 	Each expression of opinion or intention contained in the financial projections referred to in paragraph (c) above was made after careful consideration and enquiry and is believed by
the Company to be reasonable as at the date at which it is stated to be given. 

  

	20.12	 	Pari passu ranking 

  
 Its payment obligations under the Finance Documents rank at least pari passu with all its other present and future unsecured payment obligations, except
for obligations mandatorily preferred by law applying to companies generally. 
  

	20.13	 	No material adverse change 

  
 As at the date of this Agreement, there has been no material adverse change in the consolidated financial condition of the Group since the date to which
the Original Group Accounts were drawn up. 
  

	20.14	 	Deduction of Tax 

  

	(a)	 	It is not overdue in the filing of any tax returns or filings relating to any material amount of tax and it is not overdue in the payment of any material amount of, or in respect
of, tax. 

  

	(b)	 	No claims or investigations by any tax authority are being or are reasonably likely to be made or conducted against it which are reasonably likely to result in a liability of or
claim against any member of the Group to pay any material amount of, or in respect of, tax. 

  

	(c)	 	For tax purposes, it is resident only in the jurisdiction of its incorporation. 

  

	(d)	 	All amounts payable by it under the Finance Documents may be made without any deduction for or on account of tax. 

  

	20.15	 	Labour-related liabilities 

  

	(a)	 	No claims or investigations by any relevant authority are being or are reasonably likely to be made or conducted against it which are reasonably likely to result in a liability of
or claim against any member of the Group to pay any material amount of, or in respect of, pensions, ERISA or similar labour-related liabilities. 

  

	(b)	 	Each relevant member of the Group has fulfilled its obligations under the minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is in
compliance in all material respects with the presently applicable provisions of ERISA and the Internal Revenue Code with respect to each Plan. Where applicable, no member of the Group has (i) failed to make any contribution or payment to any Plan or
Multiemployer Plan (as the case may be), or made any amendment to any Plan, which has resulted or would result in the imposition of a Security Interest or the posting of a bond or other security under ERISA or the Internal Revenue Code or (ii)
incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA, except where such failure or incurrence would not have a material adverse effect on the ability of the Company to perform its
obligations under this Agreement. 

  
 For the
purposes of this Clause: 
  

 46 

 ERISA means the Employee Retirement Income Security Act of 1974, as amended, or any successor
statute. 
  
 Internal Revenue Code means the Internal
Revenue Code of 1986, as amended, or any successor statute. 
  
 Multiemployer Plan means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the Group is then making or accruing an obligation to make contributions or has within the
preceding five plan years made contributions, including for these purposes any company which ceased to be a member of the Group during such five year period. 
  

PBGC means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA. 
  
 Plan means at any time an employee pension benefit plan (other than a
Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any relevant member of the Group for employees
of any relevant member of the Group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any company which was at such time a member of the Group for employees of any company which was at such time a member
of the Group. 
  

	20.16	 	Winding up, insolvency etc. 

  
 No meeting has been convened for the winding-up, administration, dissolution or liquidation of the Company, no such step is intended by the Company and,
so far as the Company is aware, no petition, application or equivalent or analogous procedure under the law of the jurisdiction of its incorporation is outstanding for the winding-up, administration, dissolution or liquidation of the Company.

  

	20.17	 	Environment 

  

	(a)	 	It has obtained all Environmental Licences required for the carrying on of its business as currently conducted and has at all times complied with: 

  

	 	(i)	 	the terms and conditions of such Environmental Licences; and 

  

	 	(ii)	 	all other applicable Environmental Laws, 

  
 where, in each case, if not obtained or complied with the failure or its consequences would have a material adverse effect on the ability of the Company
to perform its obligations under this Agreement. There are to its knowledge no circumstances that may prevent or interfere with such compliance in the future. 
  

	(b)	 	There is no Environmental Claim pending or formally threatened and there are no past or present acts, omissions, events or circumstances that would form, or are reasonably likely to
form, the basis of any Environmental Claim (including any arising out of the generation, storage, transport, disposal or release of any dangerous substance) against any member of the Group which, if adversely determined, would have a material
adverse effect on the ability of the Company to perform its obligations under this Agreement. 

  

 47 

	20.18	 	Times for making representations and warranties 

  
 The representations and warranties set out in this Clause 20 are made by the Company on the date of this Agreement and, other than Clause 20.11
(Information) and 20.13 (No material adverse change), are deemed to be repeated by the Company on the date of each Request, each Utilisation Date, the first day of each Term, the date of exercise of the term-out option with reference to the facts
and circumstances then existing, and in any case on a quarterly basis following the date of this Agreement. 
  

	21.	 	UNDERTAKINGS 

  

	21.1	 	Duration 

  
 The undertakings in this Clause 21 (Undertakings) will remain in force from the date of this Agreement for so long as any amount is or may be outstanding
under this Agreement or any Commitment is in force. 
  

	21.2	 	Financial information 

  

	(a)	 	The Company shall supply to the Agent in sufficient copies for all the Banks: 

  

	 	(i)	 	as soon as the same are available (and in any event within 180 days of the end of each of its financial years) the audited consolidated accounts of the Group for that financial
year; 

  

	 	(ii)	 	as soon as the same are available (and in any event within 90 days of the end of the first half-year of each of its financial years) the unaudited consolidated accounts of the Group
for that half-year; 

  

	 	(iii)	 	(in respect of the Company only), together with the accounts specified in: 

  

	 	(A)	 	paragraph (i) above, a certificate signed by two of its directors on its behalf setting out in reasonable detail computations establishing compliance with Clause 21.12 (Financial
covenants) as at the date to which those accounts were drawn up, together with a report from the Company’s auditors in the agreed form; 

  

	 	(B)	 	paragraph (ii) above, a certificate signed by two of its directors on its behalf setting out in reasonable detail computations establishing compliance with Clause 21.12 (Financial
covenants) as at the date to which those accounts were drawn up; and 

  

	 	(iv)	 	as soon as the same are available (and in any event within 90 days from the end of the period for which they are produced) the quarterly unaudited consolidated accounts of the
Group. 

  

	(b) 	 	(i)        The Company must notify the Agent of any change to the manner in which its audited consolidated accounts are prepared.

  

	 	(ii)	 	If requested by the Agent, the Company must supply to the Agent: 

  

	 	(A)	 	a full description of any change notified under paragraph (b)(i) above; and 

  

 48 

	 	(B)	 	sufficient information to enable the Finance Parties to make a proper comparison between the financial position shown by the set of accounts prepared on the changed basis and its
most recent audited consolidated accounts delivered to the Agent under this Agreement. 

  

	 	(iii)	 	The Company may, or if requested by the Agent the Company must, enter into discussions for a period of not more than 30 days with a view to agreeing any amendments required to be
made to this Agreement to place the Company and the Banks in the same position as they would have been in if the change had not happened. Any agreement between the Company and the Agent will be, with the prior consent of the Majority Banks, binding
on all the Parties. 

  

	 	(iv)	 	If no agreement is reached under paragraph (iii) above on the required amendments to this Agreement, the Company must supply with each set of its accounts another set of its
accounts prepared on the same basis as the Original Group Accounts. 

  

	21.3	 	Information—Miscellaneous 

  
 The Company shall supply to the Agent: 
  

	 	(a)	 	all documents despatched by it to its shareholders (or any class of them) or its creditors (or any class of them) at the same time as they are despatched; 

 

	 	(b)	 	promptly upon becoming aware of them, details of any litigation, arbitration or administrative proceedings which are current, threatened or pending, and which might, if adversely
determined, have a material adverse effect on its ability to perform its obligations under the Finance Documents; and 

  

	 	(c)	 	promptly, such further information in the possession or control of any member of the Group regarding its financial condition as any Finance Party through the Agent may reasonably
request, 

  
 in sufficient copies for all of the
Banks, if the Agent so requests. 
  

	21.4	 	Notification of Default 

  
 The Company shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of it. 
  

	21.5	 	Principal Subsidiaries 

  
 The Company shall promptly inform the Agent of the identity of each member of the Principal Subsidiary Group in each certificate which the Company
delivers under Clause 21.2(a)(iii) (Financial information). That certificate shall set out in reasonable detail computations establishing that the aggregate EBITDA and Net Assets of the Principal Subsidiary Group equals or exceeds 75 per cent. of
Consolidated EBITDA and Net Assets of the Group respectively. 
  

	21.6	 	Compliance certificates 

  
 The Company shall supply to the Agent promptly at any time, if the Majority Banks so request and they have or the Agent has grounds for believing that a
Default may be outstanding, a statement signed by one of its senior officers on its behalf incorporating such information as it has in its possession which may be relevant as to whether any Default is 
  

 49 

 outstanding and, if a Default is stated to be outstanding, stating the steps if any being taken to remedy
it. Such statements shall contain such certificates as the Majority Banks may reasonably require as to questions of fact which are within the knowledge of the Company. 
  

	21.7	 	Authorisations 

  
 The Company shall promptly: 
  

	 	(a)	 	obtain, maintain and comply with the terms of; and 

  

	 	(b)	 	if requested, supply certified copies to the Agent of, 

  
 any authorisation required under any law or regulation to enable it to perform its obligations under, or for the validity or enforceability of, any
Finance Document. 
  

	21.8	 	Pari passu ranking 

  
 The Company shall procure that its obligations under the Finance Documents do and will rank at least pari passu with all its other present and future
unsecured obligations, except for taxes, national insurance contributions, employee remuneration and benefits and any other obligations which from time to time are mandatorily preferred by law applying to companies generally. 
  

	21.9	 	Negative pledge 

  

	(a)	 	Subject to paragraph (b) below, the Company shall not, and shall procure that no other member of the Group will, create or permit to subsist, any Security Interest on any of its
assets. 

  

	(b)	 	Notwithstanding paragraph (a) above, each member of the Group may create, or permit to subsist, Permitted Security Interests on its assets. 

  

	21.10	 	Disposals 

  

	(a)	 	The Company shall not, and shall procure that any member of the Group shall not, either in a single transaction or in a series of transactions, whether related or not and whether
voluntarily or involuntarily sell, transfer, grant or lease or otherwise dispose of: 

  

	 	(i)	 	any Licence or its interest in any Mandatory Subsidiary or any other Subsidiary to whom a Mandatory Subsidiary sells, transfers, grants, leases or otherwise disposes of any Licence;
or 

  

	 	(ii)	 	any material part of its assets (to the extent not prohibited by subparagraph (i) above). 

  

	(b)	 	Subparagraph (a)(ii) does not apply to: 

  

	 	(i)	 	disposals made in the ordinary course of business of the disposing entity; 

  

	 	(ii)	 	disposals of assets in exchange for other assets comparable or superior as to type, value and quality; 

  

	 	(iii)	 	the disposal of assets on arm’s length terms; 

  

 50 

	 	(iv)	 	sale and lease-back transactions the net financial effect of each of which (looking at the sale and any related lease-back together) represent a transaction on arm’s length
terms; and 

  

	 	(v)	 	disposals to which the Majority Banks have agreed in writing. 

  

	21.11	 	Environmental matters 

  
 The Company will procure that each member of the Group complies in all material respects with: 
  

	 	(a)	 	the terms and conditions of all Environmental Licences applicable to it; and 

  

	 	(b)	 	all other applicable Environmental Law, 

  
 where failure to comply with the relevant Environmental Licence or Environmental Law might reasonably be expected to have a material adverse effect on the
Company’s ability to perform its obligations under this Agreement. 
  

	21.12	 	Financial covenants 

  
 The Company shall procure that: 
  

	 	(a)	 	the ratio of Total Consolidated Net Borrowings to Consolidated EBITDA does not at any time exceed 4.0 to 1; and 

  

	 	(b)	 	as at the last day of each financial year and each financial half-year of the Company (each a Measurement Date): 

  

	 	(i)	 	the ratio of Operating Profit for the preceding twelve months of the Group to Net Interest Payable for the same period is not less than 2.50 to 1; and 

  

	 	(ii)	 	the ratio of Earnings to Consolidated Dividends is not less than: 

  

	 	(A)	 	1.0 to 1 for the twelve months ending on 30th September, 2003; and 

  

	 	(B)	 	thereafter, 1.25 to 1 for any period of twelve months ending on a Measurement Date. 

  

	21.13	 	Restriction on Borrowings of UK Subsidiaries 

  
 The Company shall procure that no UK Subsidiaries will have outstanding any Borrowings, except for: 
  

	 	(a)	 	any Borrowing listed in Schedule 9 (Existing Borrowings) except, in relation to all such Borrowings other than the Retail Price Index Linked £175,000,000 bond with a final
maturity date of 13th October, 2024, to the extent the principal amount (in the currency stated in Schedule 9) under that Borrowing exceeds the amount stated in Schedule 9; 

  

	 	(b)	 	Borrowings incurred by UK Subsidiaries with the prior consent of the Majority Banks; 

  

	 	(c)	 	Borrowings owed by UK Subsidiaries to other UK Subsidiaries; 

  

 51 

	 	(d)	 	Borrowings by UK Subsidiaries under EIB Facilities and not exceeding US$200,000,000 in aggregate, provided such Borrowings under the relevant EIB Facilities cannot on their terms be
repaid earlier than the Facility B Final Maturity Date, and the Borrowings are used to repay or prepay Utilisations in accordance with Clause 12.8 (Mandatory prepayment—proceeds of new Group indebtedness); 

  

	 	(e)	 	Borrowings of UK Subsidiaries not exceeding £500,000,000 in aggregate in connection with a securitisation or transaction of a similar effect after the date of this Agreement
in respect of the assets of that UK Subsidiary, provided such Borrowings are used to repay or prepay Utilisations in accordance with Clause 12.7 (Mandatory prepayment—securitisation proceeds); 

  

	 	(f)	 	any Borrowings by a UK Subsidiary which is a directly wholly-owned special purpose finance Subsidiary of the Company, provided that any such Borrowings are directly on-lent to the
Company; 

  

	 	(g)	 	any other Borrowings of any UK Subsidiary not exceeding £200,000,000 in aggregate so long as: 

  

	 	(i)	 	such Borrowings cannot, on their terms, be repaid in whole or in part earlier than the Facility B Final Maturity Date; and 

  

	 	(ii)	 	such Borrowings are used to repay or prepay Utilisations in accordance with Clause 12.8 (Mandatory prepayment—proceeds of new Group indebtedness), 

  
 provided that the aggregate of the Borrowings of all UK Subsidiaries
permitted under paragraphs (b) to (g) inclusive of this Clause 21.13 does not exceed, at any time, £650,000,000 (or its equivalent in other currencies) at that time. 
  
 In this Clause 21.13: 
  

	(A)	 	Borrowings of a Subsidiary of the Company arising in respect of guarantees issued by it, at any time, shall be taken into account in an amount equal to the actual (and not the
nominal) amount guaranteed by that guarantee at that time; and 

  

	(B)	 	Borrowings of Subsidiaries of the Company party to an intra-Group bank netting arrangement in relation to the usual operation of current accounts, at any time, shall be taken into
account only in an amount equal to the net debit balance outstanding in respect of all accounts subject to that netting arrangement, at that time. 

  

	21.14	 	Restrictions on Borrowings of non-UK Subsidiaries 

  

	(a)	 	The Company shall procure that PacifiCorp Total Debt will at no time exceed 60 per cent. of PacifiCorp Total Capitalisation. 

  

	(b)	 	For the purposes of this Clause: 

  
 Inter-Company Loan Agreement means the inter-company loan agreement dated as of 4th April, 1983 among PacifiCorp and certain of its Subsidiaries
and Affiliates, and any additional or substitute intercompany lending agreement, or amendment thereto, on substantially the terms and conditions (other than rates of interest) of that inter-company loan agreement. 
  
 PacifiCorp Total Capitalisation means at any date the sum of:

  

 52 

	 	(i)	 	all Borrowings of PacifiCorp (other than Borrowings of PacifiCorp outstanding under the Inter-Company Loan Agreement); 

  

	 	(ii)	 	all Borrowings of PacifiCorp outstanding under the Inter-Company Loan Agreement net of any advances by PacifiCorp to any of its Affiliates under the Inter-Company Loan Agreement
(but not below zero); 

  

	 	(iii)	 	preferred stock of PacifiCorp; and 

  

	 	(iv)	 	common stock equity of PacifiCorp, 

  
 less the amount (if any) by which the aggregate amount of PacifiCorp’s investments in Subsidiaries exceeds US$500,000,000, 
  
 all determined as of such date; provided that Qualifying Junior
Subordinated Debt shall be included in PacifiCorp Total Capitalisation only if and to the extent that the inclusion thereof does not cause the aggregate amount of all preferred stock and Qualifying Junior Subordinated Debt to exceed 15% of
PacifiCorp Total Capitalisation. 
  
 PacifiCorp Total Debt
means at any date the sum of: 
  

	 	(i)	 	all Borrowings of PacifiCorp (other than Borrowings of PacifiCorp outstanding under the Inter-Company Loan Agreement and Qualifying Junior Subordinated Debt);

  

	 	(ii)	 	all Borrowings of PacifiCorp outstanding under the Inter-Company Loan Agreement net of any advances by PacifiCorp to any of its Affiliates under the Inter-Company Loan Agreement
(but not below zero); and 

  

	 	(iii)	 	any portion of mandatorily redeemable preferred stock of PacifiCorp that is a current liability, 

  
 all determined as of such date. 
  
 Qualifying Junior Subordinated Debt means subordinated debt of PacifiCorp which has: 
  

	 	(i)	 	an original maturity of 20 years or more; 

  

	 	(ii)	 	provisions permitting PacifiCorp to defer the payment of interest for a period or periods of 20 consecutive quarters or more; 

  

	 	(iii)	 	no principal payments that are due and payable until after the Final Maturity Date; and 

  

	 	(iv)	 	all other characteristics (except interest rate) materially no less favorable to PacifiCorp than PacifiCorp’s 8 1/4% Junior Subordinated Deferrable Interest Debentures, Series
C maturing on 30th June, 2036 and described in PacifiCorp Capital I’s Prospectus Supplement dated 6th June, 1996. 

  

	21.15	 	Lending and guarantees 

  

	(a)	 	Except as provided in paragraph (b) below, no member of the Group may be the creditor in respect of any Borrowings or of any trade credit extended to any of its customers.

  

	(b)	 	Paragraph (a) does not apply to: 

  

 53 

	 	(i)	 	trade credit extended by any member of the Group to its customers on normal commercial terms and in the ordinary course of its trading activities; 

  

	 	(ii)	 	any loan by one member of the Group to another member of the Group; or 

  

	 	(iii)	 	any other exceptions agreed by the Majority Banks. 

  

	21.16	 	Change of business 

  
 The Company must ensure that no substantial change is made to the general nature of the business of the Company or the Group from that carried on at the
date of this Agreement. 
  

	21.17	 	Rating change 

  
 The Company shall provide to the Agent, promptly upon becoming aware of it, written notice of any change in the long term credit rating assigned to it by
S&P or Moody’s or such other rating agency as may be approved from time to time for this purpose by the Majority Banks. 
  

	21.18	 	SP Energy Management 

  
 The Company shall procure that SP Energy Management will conduct itself in its business in accordance with the standards of a reasonable and prudent
operator. 
  
 For the purposes of this Clause, reasonable and
prudent operator means a person seeking to perform its contractual obligations and in so doing and in the general conduct of its undertaking exercising that degree of skill, diligence, prudence and foresight which would reasonably and ordinarily
be expected from a skilled and experienced operator in compliance with all applicable laws engaged in the same type of undertaking in the same jurisdictions and under the same or similar circumstances and conditions. 
  

	22.	 	DEFAULT 

  

	22.1	 	Events of Default 

  
 Each of the events set out in Clauses 22.2 (Non-payment) to 22.18 (Material adverse change) (inclusive) is an Event of Default (whether or not caused by
any reason whatsoever outside the control of the Company or any other person). 
  

	22.2	 	Non-payment 

  
 The Company does not pay any amount payable by it under the Finance Documents at the place at and in the currency in which it is expressed to be payable,
unless: 
  

	 	(a)	 	its failure to pay is caused by administrative or technical error; and 

  

	 	(b)	 	payment is made within three Business Days of its due date. 

  

	22.3	 	Breach of other obligations 

  
 The Company does not comply with any provision of the Finance Documents (other than those referred to in Clause 22.2 (Non-payment)) and such failure (if
capable of remedy before the expiry of such period) continues unremedied for a period of 30 days from the date on which the Agent gives notice to the Company requiring the same to be remedied. 
  

 54 

	22.4	 	Misrepresentation 

  
 A representation, warranty or statement made or repeated by the Company in or in connection with any Finance Document or in any document delivered by or
on behalf of the Company under or in connection with any Finance Document is incorrect in any material respect when made or deemed to be made or repeated. 
  

	22.5	 	Cross-default 

  

	(a)	 	Any Borrowings (other than Hedging Liabilities) of a member of the Group are not paid when due or within any applicable grace period provided in the original documentation therefor;
or 

  

	(b)	 	any Hedging Liabilities of a member of the Group are not paid within a period of five Business Days of the due date or any applicable grace period provided in the original
documentation therefor, whichever is the shorter; or 

  

	(c)	 	any Borrowings of a member of the Group become (or become capable of being declared) prematurely due and payable or are placed (or become capable of being placed) on demand in each
case as a result of an event of default or termination event (howsoever described) under the document relating to those Borrowings; or 

  

	(d)	 	any Security Interest securing Borrowings over any asset of a member of the Group becomes enforceable and the holder thereof shall commence proceedings or appoint a receiver,
manager or similar officer to take steps to enforce the same, 

  
 except that this Clause 22.5 shall not apply to: 
  

	 	(i)	 	Project Finance Borrowings; or 

  

	 	(ii)	 	Borrowings: 

  

	 	(A)	 	liability for payment of which is being contested in good faith by appropriate proceedings provided that if the Company’s auditors determine that the amount in dispute should
be provided for in the relevant accounts, that the auditors verify that such amount is fully provided against; or 

  

	 	(B)	 	the aggregate principal amount of which (taking into account, in the case of Hedging Liabilities, the net payment due to the relevant counterparties as the principal amount for this
purpose) is US$30,000,000 or less or its equivalent in other currencies. 

  

	22.6	 	Insolvency 

  

	(a)	 	The Company or a Principal Subsidiary is, or is deemed for the purposes of any law to be, unable to pay its debts (within the meaning of Section 123(1) or, in the case of the
Company only, 123(2) of the Insolvency Act 1986 but, for the purposes of this Clause 22.6, Section 123(1)(a) of the Insolvency Act 1986 shall have effect as if for “£750” there was substituted “£250,000” or such
higher figure as the Majority Banks may from time to time agree); 

  

	(b)	 	The Company or a Principal Subsidiary suspends making payments on all or any class of its debts or announces an intention to do so, or a moratorium is declared in respect of any of
its indebtedness; or 

  

 55 

	(c)	 	the Company or a Principal Subsidiary by reason of financial difficulties, begins negotiations with one or more of its creditors with a view to the readjustment or rescheduling of
any of its indebtedness. 

  

	22.7	 	Administration 

  

	(a)	 	Any meeting of the Company’s or of any Principal Subsidiary’s shareholders, directors or other officers is convened for the purpose of considering any resolution for, to
petition for or to file documents with a court for its administration or any such resolution is passed; or 

  

	(b)	 	the directors, shareholders or other officers of the Company or any Principal Subsidiary request an application for an administrative order, or give notice of their intention to
make such a request; or 

  

	(c)	 	any person presents an application to, or files documents with, a court for an administration order in relation to the Company or any Principal Subsidiary and either (i) the Company
or such Principal Subsidiary (as the case may be) does not apply to the court within 30 days after the presentation of such petition requesting the court to refuse such petition or (ii) it does so apply but such petition is not refused by such court
within 60 days after such application for the refusal of such petition. 

  

	22.8	 	Compositions etc 

  
 The Company or any Principal Subsidiary has any voluntary arrangement proposed in relation to it under Section 1 of the Insolvency Act 1986 or any step is
taken with a view to a moratorium, composition, scheme of arrangement, compromise or other arrangement involving the Company or such Principal Subsidiary (as the case may be) and their respective creditors generally (other than for the purposes of
reconstruction or amalgamation upon terms and within such period as may previously have been approved in writing by the Majority Banks). 
  

	22.9	 	Winding up 

  

	(a)	 	Any meeting of the Company’s or of any Principal Subsidiary’s shareholders, directors or other officers is convened for the purpose of considering any resolution for (or
to petition for) its winding up (other than in connection with a reconstruction or amalgamation upon terms and within such period as may previously have been approved in writing by the Majority Banks); or 

  

	(b)	 	The Company or any Principal Subsidiary passes any resolution for its winding up other than a resolution previously approved in writing by the Majority Banks (other than in
connection with a reconstruction or amalgamation upon terms and within such period as may previously have been approved in writing by the Majority Banks); or 

  

	(c)	 	any person presents a petition, or files documents with a court, for the winding up of the Company or any Principal Subsidiary is presented to the court and either (i) the Company
or such Principal Subsidiary (as the case may be) does not apply to the court within 30 days after the presentation of such petition requesting the court to refuse such petition, or (ii) it does so apply but such petition is not refused by such
court within 60 days after such application for the refusal of such petition; or 

  

	(d)	 	The Company or any Principal Subsidiary becomes subject to a winding up order. 

  

 56 

	22.10	 	Appointment of receivers and managers 

  

	(a)	 	Any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or the like is appointed in respect of the Company or
any Principal Subsidiary or any material part of its assets or undertaking and (in the case of a receiver only) such appointment continues for more than 30 days; or 

  

	(b)	 	the directors of the Company or any Principal Subsidiary request the appointment of a liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver,
administrative receiver, administrator or the like. 

  

	22.11	 	Creditors’ process 

  
 Any attachment, sequestration, distress, execution or diligence (whether on the dependence or otherwise) affects any material asset of the Company or any
Principal Subsidiary and is not discharged within 21 days. 
  

	22.12	 	Analogous proceedings 

  
 There occurs, in relation to the Company or any Principal Subsidiary, any event anywhere which corresponds to any of those mentioned in Clauses 22.6
(Insolvency) to 22.11 (Creditors’ process) (inclusive). 
  

	22.13	 	Unlawfulness 

  
 It is or becomes unlawful for the Company to perform any of its obligations under the Finance Documents. 
  

	22.14	 	Revocation and Modification of Licences 

  
 Any Licence is: 
  

	 	(a)	 	revoked, surrendered, terminated or disposed of (or any notice of revocation or termination is issued by the relevant regulatory authority); or 

  

	 	(b)	 	modified, 

  
 in any manner or circumstances which would have a material adverse effect on the ability of the Company to perform any of its obligations under this Agreement. 
  

	22.15	 	Cessation of business 

  
 The Company ceases to carry on all or a substantial part of its business. 
  

	22.16	 	Change of control of a Mandatory Subsidiary 

  
 A Mandatory Subsidiary ceases to be a wholly owned Subsidiary of the Company. 
  

	22.17	 	Repudiation 

  
 The Company repudiates a Finance Document or evidences an intention to repudiate a Finance Document. 
  

 57 

	22.18	 	Material adverse change 

  
 Any event or circumstance occurs which has a Material Adverse Effect. 
  

	22.19	 	Acceleration 

  
 On and at any time after the occurrence of an Event of Default while such event is continuing the Agent may, and shall if so directed by the Majority
Banks, by notice to the Company: 
  

	 	(a)	 	cancel the Total Commitments; and/or 

  

	 	(b)	 	demand that all of the Utilisations, together with accrued interest, and all other amounts accrued under this Agreement be immediately due and payable, whereupon they shall become
immediately due and payable; and/or 

  

	 	(c)	 	demand that all or part of the Utilisations be payable on demand, whereupon they shall immediately become payable on demand. 

  

	23.	 	THE AGENT AND THE MANDATED LEAD ARRANGERS 

  

	23.1	 	General 

  
 References in this Clause 23 to Agent shall include the Agent and the Swingline Agent. 
  

	23.2	 	Appointment and duties of the Agent 

  
 Each Finance Party (other than the Agent) irrevocably appoints the Agent to act as its agent under and in connection with the Finance Documents, and
irrevocably authorises the Agent on its behalf to perform the duties and to exercise the rights, powers and discretions that are specifically delegated to it under or in connection with the Finance Documents, together with any other incidental
rights, powers and discretions. The Agent shall have only those duties which are expressly specified in this Agreement. Those duties are solely of a mechanical and administrative nature. 
  

	23.3	 	Role of the Mandated Lead Arrangers 

  
 Except as otherwise provided in this Agreement, each Mandated Lead Arranger has no obligations of any kind to any other Party under or in connection with
any Finance Document. 
  

	23.4	 	Relationship 

  
 The relationship between the Agent and the other Finance Parties is that of agent and principal only. Nothing in this Agreement constitutes the Agent as
trustee or fiduciary for any other Party or any other person and the Agent need not hold in trust any moneys paid to it for a Party or be liable to account for interest on those moneys. 
  

	23.5	 	Majority Banks’ directions 

  
 The Agent will be fully protected if it acts in accordance with the instructions of the Majority Banks in connection with the exercise of any right, power
or discretion or any matter not expressly provided for in the Finance Documents. Any such instructions given by the Majority Banks will be binding on all the Banks. In the absence of such instructions the Agent may act as it considers to be in the
best interests of all the Banks. 
  

 58 

	23.6	 	Delegation 

  
 The Agent may act under the Finance Documents through its personnel and agents. 
  

	23.7	 	Responsibility for documentation 

  
 Neither the Agent nor a Mandated Lead Arranger is responsible to any other Party for: 
  

	 	(a)	 	the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document; 

  

	 	(b)	 	the collectability of amounts payable under any Finance Document; or 

  

	 	(c)	 	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document. 

  

	23.8	 	Default 

  

	(a)	 	The Agent is not obliged to monitor or enquire as to whether or not a Default has occurred. The Agent will not be deemed to have knowledge of the occurrence of a Default. However,
if the Agent receives notice from a Party referring to this Agreement, describing the Default and stating that the event is a Default, it shall promptly notify the Banks. 

  

	(b)	 	The Agent may require the receipt of security satisfactory to it whether by way of payment in advance or otherwise, against any liability or loss which it will or may incur in
taking any proceedings or action arising out of or in connection with any Finance Document before it commences these proceedings or takes that action. 

  

	23.9	 	Exoneration 

  

	(a)	 	Without limiting paragraph (b) below, the Agent will not be liable to any other Party for any action taken or not taken by it under or in connection with any Finance Document,
unless directly caused by its gross negligence or wilful misconduct. 

  

	(b)	 	No Party may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of
any kind (including negligence or wilful misconduct) by that officer, employee or agent in relation to any Finance Document. 

  

	23.10	 	Reliance 

  
 The Agent may: 
  

	 	(a)	 	rely on any notice or document believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper person; 

  

	 	(b)	 	rely on any statement made by a director or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify;
and 

  

	 	(c)	 	engage, pay for and rely on legal or other professional advisers selected by it (including those in the Agent’s employment and those representing a Party other than the Agent).

  

 59 

	23.11	 	Credit approval and appraisal 

  
 Without affecting the responsibility of the Company for information supplied by it or on their behalf in connection with any Finance Document, each Bank
confirms that it: 
  

	 	(a)	 	has made its own independent investigation and assessment of the financial condition and affairs of the Company and their related entities in connection with its participation in
this Agreement and has not relied exclusively on any information provided to it by the Agent or the Mandated Lead Arrangers in connection with any Finance Document; and 

  

	 	(b)	 	will continue to make its own independent appraisal of the creditworthiness of the Company and their related entities while any amount is or may be outstanding under the Finance
Documents or any Commitment is in force. 

  

	23.12	 	Information 

  

	(a)	 	The Agent shall promptly forward to the person concerned the original or a copy of any document which is delivered to the Agent by a Party for that person. 

 

	(b)	 	The Agent shall promptly supply a Bank with a copy of each document received by the Agent under Clause 4 (Conditions Precedent) upon the request and at the expense of that Bank.

  

	(c)	 	Except where this Agreement specifically provides otherwise, the Agent is not obliged to review or check the accuracy or completeness of any document it forwards to another Party.

  

	(d)	 	Except as provided above, the Agent has no duty: 

  

	 	(i)	 	either initially or on a continuing basis to provide any Bank with any credit or other information concerning the financial condition or affairs of the Company or any related entity
of the Company whether coming into its possession or that of any of its related entities before, on or after the date of this Agreement; or 

  

	 	(ii)	 	unless specifically requested to do so by a Bank in accordance with this Agreement, to request any certificates or other documents from the Company. 

  

	23.13	 	The Agent and each Mandated Lead Arranger individually 

  

	(a)	 	If it is also a Bank, each of the Agent and a Mandated Lead Arranger has the same rights and powers under this Agreement as any other Bank and may exercise those rights and powers
as though it were not the Agent or a Mandated Lead Arranger. 

  

	(b)	 	Each of the Agent and a Mandated Lead Arranger may: 

  

	 	(i)	 	carry on any business with the Company or its related entities; 

  

	 	(ii)	 	act as agent or trustee for, or in relation to any financing involving, the Company or its related entities; and 

  

	 	(iii)	 	retain any profits or remuneration in connection with its activities under this Agreement or in relation to any of the foregoing. 

  

 60 

	23.14	 	Indemnities 

  

	(a)	 	Without limiting the liability of the Company under the Finance Documents, each Bank shall forthwith on demand indemnify the Agent for its proportion of any liability or loss
incurred by the Agent in any way relating to or arising out of its acting as the Agent, except to the extent that the liability or loss arises directly from the Agent’s gross negligence or wilful misconduct. 

  

	(b)	 	A Bank’s proportion of the liability or loss set out in paragraph (a) above is the proportion which the Original Dollar Amount of its participation in the Utilisations (if any)
bear to the Original Dollar Amount of all the Utilisations on the date of the demand. If, however, there are no Utilisations outstanding on the date of demand, then the proportion will be the proportion which its relevant Commitment bears to the
Total Commitments at the date of demand or, if the Total Commitments have been cancelled, bore to the Total Commitments immediately before being cancelled. 

  

	23.15	 	Compliance 

  

	(a)	 	The Agent may refrain from doing anything which might, in its opinion, constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do
anything which, in its opinion, is necessary or desirable to comply with any law or regulation of any jurisdiction. 

  

	(b)	 	Without limiting paragraph (a) above, the Agent need not disclose any information relating to the Company or any of its related entities if the disclosure might, in the opinion of
the Agent, constitute a breach of any law or regulation or any duty of secrecy or confidentiality or be otherwise actionable at the suit of any person. 

  

	23.16	 	Resignation of Agent 

  

	(a)	 	Notwithstanding its irrevocable appointment, the Agent may resign by giving notice to the Banks and the Company, in which case the Agent may forthwith appoint one of its Affiliates
as successor Agent or, failing that, the Majority Banks may appoint a successor Agent. 

  

	(b)	 	If the appointment of a successor Agent is to be made by the Majority Banks but they have not, within 30 days after notice of resignation, appointed a successor Agent which accepts
the appointment, the retiring Agent may appoint a successor Agent. 

  

	(c)	 	The resignation of the retiring Agent and the appointment of any successor Agent will both become effective only upon the successor Agent notifying all the Parties that it accepts
the appointment. On giving the notification, the successor Agent will succeed to the position of the retiring Agent and the term Agent will mean the successor Agent. 

  

	(d)	 	The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request
for the purposes of performing its functions as the Agent under this Agreement. 

  

	(e)	 	Upon its resignation becoming effective, this Clause 23 shall continue to benefit the retiring Agent in respect of any action taken or not taken by it under or in connection with
the Finance Documents while it was the Agent, and, subject to paragraph (d) above, it shall have no further obligation under any Finance Document. 

  

 61 

	23.17	 	Banks 

  
 The Agent may treat each Bank as a Bank, entitled to payments under this Agreement and as acting through its Facility Office(s) until it has received
notice from the Bank to the contrary by not less than five Business Days prior to the relevant payment. 
  

	23.18	 	Extraordinary management time and resources 

  
 In addition to the fees (if any) paid or payable to the Agent pursuant to Clause 24 (Fees), the Company shall, on demand by the Agent, reimburse it for
its own account at such reasonable daily or hourly rates as the Agent may separately agree with the Company from time to time, the reasonable cost of utilising its management time or other resources in connection with taking all such steps or other
action which: 
  

	 	(a)	 	the Company requests, in connection with: 

  

	 	(i)	 	the granting or proposed granting of any waiver or consent under any Finance Document; or 

  

	 	(ii)	 	any amendment or proposed amendment to any Finance Document; or 

  

	 	(b)	 	which the Company or the Majority Banks request(s) in connection with: 

  

	 	(i)	 	any breach by the Company of its obligations under any Finance Document or any investigations in respect of any such breach; or 

  

	 	(ii)	 	the preservation and enforcement of any of the rights of the Finance Parties under the Finance Documents; or 

  

	 	(iii)	 	the occurrence of a Default. 

  

	24.	 	FEES 

  

	24.1	 	Front-end fees 

  
 The Company shall pay to the Agent for the Mandated Lead Arrangers front-end fees in the amounts agreed in the relevant Fee Letter within one Business Day
of the date of this Agreement which the Agent shall distribute to the Banks in the manner agreed between the Mandated Lead Arrangers and the Banks. 
  

	24.2	 	Commitment fee 

  

	(a)	 	The Company shall pay to the Agent for each Bank a commitment fee computed at the rate of: 

  

	 	(i)	 	30 per cent. of the applicable Margin per annum on the undrawn, uncancelled amount of that Bank’s Facility A Commitment; and 

  

	 	(ii)	 	45 per cent. of the applicable Margin per annum on the undrawn, uncancelled amount of that Bank’s Facility B Commitment, 

  
 during the period from the date of this Agreement up to and including the
relevant Final Maturity Date. 
  

 62 

	(b)	 	Accrued commitment fee is payable quarterly in arrear. Accrued commitment fee is also payable to the Agent for the relevant Bank(s) on the cancelled amount of its Commitments at the
time the cancellation takes effect. 

  

	24.3	 	Utilisation fee 

  

	(a)	 	For each day on which the outstanding principal amount of the Utilisations exceeds 33.3 per cent., but is less than 66.6 per cent., of the Total Commitments at that time, the
Company shall pay a utilisation fee to the Agent, for the account of the Banks of 0.05 per cent. per annum, on the amount of the outstanding principal amount of the Utilisations on that day. 

  

	(b)	 	For each day on which the outstanding principal amount of the Utilisations exceeds 66.6 per cent. of the Total Commitments at that time, the Company shall pay a utilisation fee to
the Agent, for the account of the Banks, of 0.1 per cent. per annum on the amount of the outstanding principal amount of the Utilisations on that day. 

  

	(c)	 	The utilisation fee is payable quarterly in arrear. Accrued utilisation fee is also payable to the Agent for the account of the Banks on the date that the Commitments are cancelled
and the Utilisations are prepaid or repaid in full. 

  

	24.4	 	Agent’s fee 

  
 The Company shall pay to the Agent for its own account an agency fee in the amount and at the times agreed in the relevant Fee Letter. 
  

	24.5	 	Term-out fee 

  
 The Company shall pay to the Agent for the account of each Bank a term-out fee calculated rate of 0.15 per cent. flat on the amount of the Facility A
Commitment of that Bank requested to be converted into Term Loans under Clause 10 (Term-Out Option) within five Business Days of the date of exercise of the term-out option. 
  

	24.6	 	VAT 

  
 Any fee referred to in this Clause 24 (Fees) is exclusive of any value added tax or any other tax which might be chargeable in connection with that fee. If any value added tax or other tax is so chargeable, it shall
be paid by the Company at the same time as it pays the relevant fee. 
  

	25.	 	EXPENSES 

  

	25.1	 	Initial and special costs 

  
 The Company shall forthwith on demand pay the Agent and each Mandated Lead Arranger the amount of all reasonable costs and expenses (including legal fees)
incurred by each of them in connection with: 
  

	 	(a)	 	the negotiation, preparation, printing and execution of: 

  

	 	(i)	 	this Agreement and any other documents referred to in this Agreement; 

  

	 	(ii)	 	any other Finance Document (other than a Novation Certificate) executed after the date of this Agreement; 

  

 63 

	 	(b)	 	any amendment, waiver, consent or suspension of rights (or any proposal for any of the foregoing) requested by or on behalf of the Company and relating to a Finance Document or a
document referred to in any Finance Document; and 

  

	 	(c)	 	any other matter, not of an ordinary administrative nature, arising out of or in connection with a Finance Document. 

  

	25.2	 	Enforcement costs 

  
 The Company shall forthwith on demand pay to each Finance Party the amount of all reasonable costs and expenses (including legal fees) incurred by it:

  

	 	(a)	 	in connection with the enforcement of, or the preservation of any rights under, any Finance Document; or 

  

	 	(b)	 	in investigating any possible Default. 

  

	26.	 	STAMP DUTIES 

  
 The Company shall pay and forthwith on demand indemnify each Finance Party against any liability it incurs in respect of any stamp, registration and
similar tax which is or becomes payable in connection with the entry into, performance or enforcement of any Finance Document. 
  

	27.	 	INDEMNITIES 

  

	27.1	 	Currency indemnity 

  

	(a)	 	If a Finance Party receives an amount in respect of the Company’s liability under the Finance Documents or if that liability is converted into a claim, proof, judgment or order
in a currency other than the currency (the contractual currency) in which the amount is expressed to be payable under the relevant Finance Document: 

  

	 	(i)	 	the Company shall indemnify that Finance Party as an independent obligation against any loss or liability arising out of or as a result of the conversion; 

 

	 	(ii)	 	if the amount received by that Finance Party, when converted into the contractual currency at a market rate in the usual course of its business, is less than the amount owed in the
contractual currency, the Company shall forthwith on demand pay to that Finance Party an amount in the contractual currency equal to the deficit; and 

  

	 	(iii)	 	the Company shall pay to the Finance Party concerned on demand any exchange costs and taxes payable in connection with any such conversion. 

  

	(b)	 	The Company waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable.

  

	27.2	 	Other indemnities 

  
 The Company shall forthwith on demand indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of:

  

	 	(a)	 	the occurrence of any Default; 

  

 64 

	 	(b)	 	the operation of Clause 2.8 (Change of Currency), 22.19 (Acceleration) or Clause 33 (Pro Rata Sharing); 

  

	 	(c)	 	any payment of principal or an overdue amount being received from any source otherwise than on its Repayment Date and, for the purposes of this paragraph (c), the Repayment Date of
an overdue amount is the last day of each Designated Term (as defined in Clause 13.5 (Default interest)); or 

  

	 	(d)	 	(other than by reason of negligence or default by a Finance Party) a Utilisation not being made after the Company has delivered a Request for that Utilisation.

  
 The Company’s liability in each case
includes any loss of margin or other loss or expense on account of funds borrowed, contracted for or utilised to fund any amount payable under any Finance Document, any amount repaid or prepaid or any Utilisation. 
  

	28.	 	EVIDENCE AND CALCULATIONS 

  

	28.1	 	Accounts 

  
 Accounts maintained by a Finance Party in connection with this Agreement are prima facie evidence of the matters to which they relate. 
  

	28.2	 	Certificates and determinations 

  
 Any certification or determination by a Finance Party of a rate or amount under this Agreement is, in the absence of manifest error, conclusive evidence
of the matters to which it relates. 
  

	28.3	 	Calculations 

  
 Interest (including any applicable Mandatory Cost) and any fees accruing under this Agreement shall accrue from day to day and are calculated on the basis
of the actual number of days elapsed and a year of 360 days or, in the case of interest payable on an amount denominated in Sterling only or where the market practice otherwise dictates, 365 days. 
  

	29.	 	AMENDMENTS AND WAIVERS 

  

	29.1	 	Procedure 

  

	(a)	 	Subject to Clause 29.2 (Exceptions), any term of the Finance Documents may be amended or waived with the agreement of the Company, the Majority Banks and the Agent. The Agent may
effect, on behalf of the Banks, an amendment to which they or the Majority Banks have agreed. 

  

	(b)	 	The Agent shall promptly notify the other Parties of any amendment or waiver effected under paragraph (a) above, and any such amendment or waiver shall be binding on all the
Parties. 

  

	29.2	 	Exceptions 

  
 An amendment or waiver which relates to: 
  

	 	(a)	 	the definition of Majority Banks in Clause 1.1; 

  

 65 

	 	(b)	 	an extension of the date for, or a decrease in an amount or a change in the currency of, any payment under the Finance Documents; 

  

	 	(c)	 	an increase in, or extension of, a Bank’s Commitment; 

  

	 	(d)	 	a term of a Finance Document which expressly requires the consent of each Bank; 

  

	 	(e)	 	Clause 2.7 (Nature of a Finance Party’s rights and obligations), Clause 33 (Pro Rata Sharing) or this Clause 29; or 

  

	 	(f)	 	a right of a Bank to assign or transfer its rights or obligations under the Finance Documents, 

  
 may not be effected without the consent of each Bank. 
  

	29.3	 	Waivers and remedies cumulative 

  
 The rights of each Finance Party under the Finance Documents: 
  

	 	(a)	 	may be exercised as often as necessary; 

  

	 	(b)	 	are cumulative and not exclusive of its rights under the general law; and 

  

	 	(c)	 	may be waived only in writing and specifically. 

  
 Delay in exercising or non-exercise of any such right is not a waiver of that right. 
  

	30.	 	CHANGES TO THE PARTIES 

  

	30.1	 	Transfers by the Company 

  
 The Company may not assign, transfer, novate or dispose of any of, or any interest in, its rights and/or obligations under this Agreement. 
  

	30.2	 	Transfers by Banks 

  

	(a)	 	Subject to Clauses 7.3 (Assignments and transfers) and 9.4 (Conditions of assignment or transfer), a Bank (the Existing Bank) may at any time assign, transfer or novate any
of its rights and/or obligations under this Agreement (in a minimum amount equal to US$10,000,000 or, if less with respect to a particular Bank, the balance of that Bank’s Commitment at the time of transfer) to another bank or financial
institution which is a Qualifying Bank (the New Bank). The prior consent of the Company is required for any such assignment, transfer or novation, unless: 

  

	 	(i)	 	the New Bank is another Bank or an Affiliate of a Bank; or 

  

	 	(ii)	 	a Default is outstanding. 

  
 However, the prior consent of the Company must not be unreasonably withheld or delayed and will be deemed to have been given if, within 21 days of receipt
by the Company of an application for consent, it has not been expressly refused. 
  

	(b)	 	A transfer of obligations will be effective only if either: 

  

 66 

	 	(i)	 	the obligations are novated in accordance with Clause 30.3 (Procedure for novations); or 

  

	 	(ii)	 	the New Bank confirms to the Agent and the Company that it is a Qualifying Bank and that it undertakes to be bound by the terms of this Agreement as a Bank in form and substance
satisfactory to the Agent. On the transfer becoming effective in this manner the Existing Bank shall be relieved of its obligations under this Agreement to the extent that they are transferred to the New Bank. 

  

	(c)	 	Nothing in this Agreement restricts the ability of a Bank to sub-contract an obligation if that Bank remains liable under this Agreement for that obligation except that no Bank may
sub-contract any such obligation if the effect of such contract would be that a person other than a Qualifying Bank has any beneficial entitlement to any interest received by it under this Agreement. 

  

	(d)	 	On each occasion that an Existing Bank assigns, transfers or novates any of its rights and/or obligations under this Agreement, the New Bank shall, on the date the assignment,
transfer and/or novation takes effect, pay to the Agent for its own account a fee of £1,000. 

  

	(e)	 	An Existing Bank is not responsible to a New Bank for: 

  

	 	(i)	 	the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document; 

  

	 	(ii)	 	the collectability of amounts payable under any Finance Document; or 

  

	 	(iii)	 	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document. 

  

	(f)	 	Each New Bank confirms to the Existing Bank and the other Finance Parties that it: 

  

	 	(i)	 	has made its own independent investigation and assessment of the financial condition and affairs of the Company and its related entities in connection with its participation in this
Agreement and has not relied exclusively on any information provided to it by the Existing Bank in connection with any Finance Document; and 

  

	 	(ii)	 	will continue to make its own independent appraisal of the creditworthiness of the Company and its related entities while any amount is or may be outstanding under this Agreement or
any Commitment is in force. 

  

	(g)	 	Nothing in any Finance Document obliges an Existing Bank to: 

  

	 	(i)	 	accept a re-transfer from a New Bank of any of the rights and/or obligations assigned, transferred or novated under this Clause; or 

  

	 	(ii)	 	support any losses incurred by the New Bank by reason of the non-performance by the Company of its obligations under this Agreement or otherwise. 

  

	(h)	 	Any reference in this Agreement to a Bank includes a New Bank, but excludes a Bank if no amount is or may be owed to or by that Bank under this Agreement and its Commitment has been
cancelled or reduced to nil. 

  

 67 

	30.3	 	Procedure for novations 

  

	(a)	 	A novation is effected if the Existing Bank and the New Bank deliver to the Agent a Novation Certificate in the form of Schedule 5 and the Agent executes it.

  

	(b)	 	Each Party (other than the Existing Bank and the New Bank) irrevocably authorises the Agent to execute any duly completed Novation Certificate on its behalf.

  

	(c)	 	To the extent that they are expressed to be the subject of the novation in the Novation Certificate: 

  

	 	(i)	 	the Existing Bank and the other Parties (the existing Parties) will be released from their obligations to each other (the discharged obligations);

  

	 	(ii)	 	the New Bank and the existing Parties will assume obligations towards each other which differ from the discharged obligations only insofar as they are owed to or assumed by the New
Bank instead of the Existing Bank; 

  

	 	(iii)	 	the rights of the Existing Bank against the existing Parties and vice versa (the discharged rights) will be cancelled; and 

  

	 	(iv)	 	the New Bank and the existing Parties will acquire rights against each other which differ from the discharged rights only insofar as they are exercisable by or against the New Bank
instead of the Existing Bank, 

  
 all on the date
of execution of the Novation Certificate by the Agent or, if later, the date specified in the Novation Certificate. The completed Novation Certificate must be delivered to the Agent at least 5 Business Days before the date on which it is stated to
be effective or such other date agreed by the Agent. If no agreement can be reached by the Agent the novation will not be effective. 
  

	30.4	 	Reference Banks 

  
 If a Reference Bank (or, if a Reference Bank is not a Bank, the Bank of which it is an Affiliate) ceases to be one of the Banks, the Agent shall (in
consultation with the Company) appoint another Bank or an Affiliate of a Bank to replace that Reference Bank. 
  

	30.5	 	Register 

  
 The Agent shall keep a register of all the Parties and shall supply any other Party (at that Party’s expense) with a copy of the register on request.

  

	30.6	 	Change of Facility Office 

  
 No Bank will change its Facility Office if, at the time of the change, circumstances exist which would oblige the Company to pay that Bank any amount
under Clause 16 (Taxes) or Clause 18 (Increased Costs) which it would not have been obliged to pay if that Bank had retained the same Facility Office. 
  

	31.	 	DISCLOSURE OF INFORMATION 

  
 A Bank may disclose to one of its Affiliates or any person with whom it is proposing to enter, or has entered into, any kind of transfer, participation or
other agreement in relation to this Agreement: 
  

 68 

	 	(i)	 	a copy of any Finance Document; and 

  

	 	(ii)	 	any information which that Bank has acquired under or in connection with any Finance Document. 

  
 Provided that any such Affiliate or person has entered into a confidentiality undertaking substantially in the form of
Schedule 10 (Form of Confidentiality Undertaking) or in any other form agreed between the Company and the Agent. 
  

	32.	 	SET-OFF 

  
 A Finance Party may set off any matured obligation owed by the Company under this Agreement (to the extent beneficially owned by that Finance Party)
against any obligation (whether or not matured) owed by that Finance Party to the Company, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may
convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. If either obligation is unliquidated or unascertained, the Finance Party may set off in an amount estimated by it in good faith to
be the amount of that obligation. 
  

	33.	 	PRO RATA SHARING 

  

	33.1	 	Redistribution 

  
 If any amount owing by the Company under this Agreement to a Finance Party (the recovering Finance Party) is discharged by payment, set-off or any
other manner other than through the Agent in accordance with Clause 15 (Payments) (a recovery), then: 
  

	 	(a)	 	the recovering Finance Party shall, within three Business Days, notify details of the recovery to the Agent; 

  

	 	(b)	 	the Agent shall determine whether the recovery is in excess of the amount which the recovering Finance Party would have received had the recovery been received by the Agent and
distributed in accordance with Clause 15 (Payments); 

  

	 	(c)	 	subject to Clause 33.3 (Exception), the recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the redistribution)
equal to the excess; 

  

	 	(d)	 	the Agent shall treat the redistribution as if it were a payment by the Company under Clause 15 (Payments) and shall pay the redistribution to the Finance Parties (other than the
recovering Finance Party) in accordance with Clause 15.7 (Partial payments); and 

  

	 	(e)	 	after payment of the full redistribution, the recovering Finance Party will be subrogated to the portion of the claims paid under paragraph (d) above, and the Company will owe the
recovering Finance Party a debt which is equal to the redistribution, immediately payable and of the type originally discharged. 

  

	33.2	 	Reversal of redistribution 

  
 If under Clause 33.1 (Redistribution): 
  

 69 

	 	(a)	 	a recovering Finance Party must subsequently return a recovery, or an amount measured by reference to a recovery, to the Company; and 

  

	 	(b)	 	the recovering Finance Party has paid a redistribution in relation to that recovery, 

  
 each Finance Party shall, within three Business Days of demand by the recovering Finance Party through the Agent, reimburse
the recovering Finance Party all or the appropriate portion of the redistribution paid to that Finance Party. Thereupon the subrogation in Clause 33.1(e) (Redistribution) will operate in reverse to the extent of the reimbursement. 
  

	33.3	 	Exception 

  
 A recovering Finance Party need not pay a redistribution to the extent that it would not, after the payment, have a valid claim against the Company in the
amount of the redistribution pursuant to Clause 33.1(e) (Redistribution). 
  

	34.	 	SEVERABILITY 

  
 If a provision of any Finance Document is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect: 
  

	 	(a)	 	the legality, validity or enforceability in that jurisdiction of any other provision of the Finance Documents; or 

  

	 	(b)	 	the legality, validity or enforceability in other jurisdictions of that or any other provision of the Finance Documents. 

  

	35.	 	COUNTERPARTS 

  
 This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy
of this Agreement. 
  

	36.	 	NOTICES 

  

	36.1	 	Giving of notices 

  
 All notices or other communications under or in connection with this Agreement shall be given in writing or by facsimile. Any such notice will be deemed
to be given as follows: 
  

	 	(a)	 	if in writing, when delivered; and 

  

	 	(b)	 	if by facsimile, when received. 

  
 However, a notice given in accordance with the above but received on a non-working day or after business hours in the place of receipt will only be deemed
to be given on the next working day in that place. 
  

	36.2	 	Addresses for notices 

  

	(a)	 	The address and facsimile number of each Party (other than the Agent and the Swingline Agent) for all notices under or in connection with this Agreement are:

  

	 	(i)	 	that notified by that Party for this purpose to the Agent on or before it becomes a Party; or 

  

 70 

	 	(ii)	 	any other notified by that Party for this purpose to the Agent by not less than five Business Days’ notice. 

  

	(b)	 	The address and facsimile number of the Agent is: 

  
 The Royal Bank of Scotland plc 
 2.5
Devonshire Square 
 London EC2M 4BB 
  
 Facsimile number: +44 207 615 7673 
  
 Attention: Loans Administration 
  
 or such other as the Agent may notify to the other Parties by not less than five Business Days’ notice. 
  

	(c)	 	The address and facsimile number of the Swingline Agent is: 

  
 The Royal Bank of Scotland plc, New York Branch 
 101 Park Avenue 
 12th Floor 
 New York, NY 10178 
  
 Facsimile number: +1 212 401
1336Attention: Juanita Baird/Rebecca Zhang—Commercial Loans 
  

	(d)	 	The Agent shall, promptly upon request from any Party, give to that Party the address or facsimile number of any other Party applicable at the time for the purposes of this Clause.

  

	37.	 	GOVERNING LAW 

  
 This Agreement is governed by English law. 
  

	38.	 	JURISDICTION 

  

	(a)	 	Each of the parties hereto irrevocably agrees, for the benefit of the Agent and the Banks, that the courts of England shall have jurisdiction to hear and determine any suit, action
or proceeding, and to settle any disputes, which may arise out of or in connection with this Agreement and, for such purposes, irrevocably submits to the jurisdiction of such courts. 

  

	(b)	 	The Company irrevocably waives any objection which it might now or hereafter have to the courts referred to in paragraph (a) above being nominated as the forum to hear and determine
any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with this Agreement and agrees not to claim that any such court is not a convenient or appropriate forum. 

  

	(c)	 	The submission to the jurisdiction of the courts referred to in paragraph (a) above shall not (and shall not be construed so as to) limit the right of the Agent or the Banks to take
proceedings in any other court of competent jurisdiction nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not. 

  

 71 

	39.	 	SERVICE OF PROCESS 

  
 Without prejudice to any other mode of service allowed under any relevant law, the Company: 
  

	 	(a)	 	irrevocably appoints its London office at 30 Cannon Street, London EC4M 6XH as its agent for service of process in relation to any proceedings before the English courts in
connection with any Finance Documents; and 

  

	 	(b)	 	agrees that any failure by a process agent to notify the Company of the process will not invalidate the proceedings concerned. 

  
 This Agreement has been entered into on the date stated at the beginning of
this Agreement. 
  

 72 

 SCHEDULE 1 
  

ORIGINAL PARTIES 
  

	 Original Bank

	  	Facility A
Commitments

	  	Facility B Revolving
Credit Commitments

	 	  	(US$)	  	(US$)
			
	 The Bank of Tokyo-Mitsubishi, Ltd.
	  	22,000,000	  	36,666,666
			
	 Barclays Bank PLC
	  	22,000,000	  	36,666,667
			
	 Commerzbank Aktiengesellschaft, London Branch
	  	22,000,000	  	36,666,666
			
	 HSBC Bank plc
	  	22,000,000	  	36,666,667
			
	 JPMorgan Chase Bank
	  	22,000,000	  	36,666,667
			
	 The Royal Bank of Scotland plc
	  	22,000,000	  	36,666,667
			
	 ABN AMRO Bank N.V.
	  	17,625,000	  	29,375,000
			
	 Bank One, NA
	  	17,625,000	  	29,375,000
			
	 BNP Paribas, London Branch
	  	17,625,000	  	29,375,000
			
	 CDC Finance—CDC IXIS
	  	17,625,000	  	29,375,000
			
	 Citibank, N.A.
	  	17,625,000	  	29,375,000
			
	 Credit Suisse First Boston, London Branch
	  	17,625,000	  	29,375,000
			
	 Deutsche Bank AG London
	  	17,625,000	  	29,375,000
			
	 ING Bank N.V., London Branch
	  	17,625,000	  	29,375,000
			
	 Merrill Lynch Bank USA
	  	17,625,000	  	29,375,000
			
	 Morgan Stanley Bank
	  	17,625,000	  	29,375,000
			
	 National Australia Bank Limited (A.B.N. 12 004 044 937)
	  	17,625,000	  	29,375,000
			
	 UBS AG
	  	17,625,000	  	29,375,000
			
	 Crédit Agricole Indosuez, UK Branch
	  	10,500,000	  	17,500,000
			
	 Fleet National Bank
	  	10,500,000	  	17,500,000
			
	 TD Bank Europe Limited
	  	10,500,000	  	17,500,000
			
	 	  	
	  	

			
	 	  	375,000,000	  	625,000,000
	 	  	
	  	

  

 73 

	 Original Bank

	  	Swingline
Commitments

	 	  	(US$)
		
	 Barclays Bank PLC London, c/o Barclays Group Inc.
	  	17,840,000
		
	 Commerzbank Aktiengesellschaft, New York Branch
	  	17,840,000
		
	 HSBC Bank plc
	  	17,840,000
		
	 JPMorgan Chase Bank, New York International Facility (IBF)
	  	17,840,000
		
	 The Royal Bank of Scotland plc, New York Branch
	  	17,840,000
		
	 ABN AMRO Bank N.V., Chicago Branch
	  	9,400,000
		
	 Bank One, NA, New York
	  	9,400,000
		
	 BNP Paribas, New York Branch
	  	9,400,000
		
	 Citibank, N.A., New York
	  	9,400,000
		
	 Credit Suisse First Boston, Cayman Islands Branch
	  	9,400,000
		
	 Deutsche Bank AG, New York Branch
	  	9,400,000
		
	 ING Bank N.V., London Branch
	  	9,400,000
		
	 Merrill Lynch Bank USA
	  	9,400,000
		
	 Morgan Stanley Bank
	  	9,400,000
		
	 UBS AG, Cayman Islands Branch
	  	9,400,000
		
	 Crédit Agricole Indosuez, New York Branch
	  	5,600,000
		
	 Fleet National Bank, New York
	  	5,600,000
		
	 Toronto Dominion (Texas), Inc.
	  	5,600,000
		
	 	  	

		
	 	  	200,000,000
	 	  	

  

 74 

 SCHEDULE 2 
  

CONDITIONS PRECEDENT DOCUMENTS 
  

	1.	 	A copy of the memorandum and articles of association, certificate of incorporation and certificate of incorporation on change of name (if any) of the Company.

  

	2.	 	A copy of a resolution of the board of directors of the Company: 

  

	 	(i)	 	approving the terms of, and the transactions contemplated by the Finance Documents resolving that it execute the Finance Documents to which it is a party and any related and/or
ancillary documents; 

  

	 	(ii)	 	authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and 

  

	 	(iii)	 	authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices to be signed and/or despatched by it under or in connection with
the Finance Documents. 

  

	3.	 	A certificate of a director of the Company certifying that the utilisation of the Facility in full would not cause any internal borrowing limit binding on the Company to be
exceeded. 

  

	4.	 	A certificate of an authorised signatory of the Company certifying: 

  

	 	(a)	 	that each copy document specified in this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement; and

  

	 	(b)	 	the specimen signatures of its authorised signatories. 

  

	5.	 	A legal opinion of Allen & Overy, legal advisers to the Agent, addressed to the Finance Parties substantially in the form of Schedule 6. 

  

	6.	 	A legal opinion of Maclay Murray & Spens, legal advisers to the Agent in Scotland, addressed to the Finance Parties substantially in the form of Schedule 7.

  
 Miscellaneous 
  

	7.	 	A copy of each Licence held by a member of the Group other than PacifiCorp or its Subsidiaries. 

  

	8.	 	Evidence that the Existing Facilities have been cancelled and any outstandings under the Existing Facilities have been or will on the first Utilisation Date be repaid in full.

  

	9.	 	A copy of the Original Group Accounts. 

  

	10.	 	Evidence that all fees and expenses then due and payable from the Company under this Agreement have been or will be paid by the first Utilisation Date. 

  

	11.	 	Evidence that the process agent referred to in Clause 39 (Service of Process) has accepted the appointment. 

  

	12.	 	 A copy of any other authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into
and performance of, 

  

 75 

 
and the transactions contemplated by, any Finance Document or for the validity and enforceability of any Finance Document and which, in either case, is
notified to the Company prior to the execution of this Agreement. 
  

 76 

 SCHEDULE 3 
  

CALCULATION OF THE MANDATORY COST 
  

	General	 	

  
 The Mandatory Cost is the weighted average of the rates for each Bank calculated below by the Agent on the first day of a Term. The Agent must distribute each amount of Mandatory Cost among the Banks on the basis of the rate for each Bank.

  

	1.	 	For a Bank lending from a Facility Office in the U.K. 

  

	(a)	 	The relevant rate for a Bank lending from a Facility Office in the U.K. is calculated in accordance with the following formulae: 

  
 for a Loan in Sterling: 
  
 AB+C(B-D)+Ex0.01 per cent. per annum 
 100-(A+C) 
  
 for any other Loan: 
  
 E x 0.01 per cent. per annum 
 300 
  
 where on the day of application of the formula:

  

	 	A	 	is the percentage of that Bank’s eligible liabilities (in excess of any stated minimum) which the Bank of England requires it to hold on a non-interest-bearing deposit account
in accordance with its cash ratio requirements; 

  

	 	B	 	is LIBOR for that Term; 

  

	 	C	 	is the percentage of that Bank’s eligible liabilities which the Bank of England requires it to place as a special deposit; 

  

	 	D	 	is the interest rate per annum allowed by the Bank of England on a special deposit; and 

  

	 	E	 	is calculated by the Agent as being the average of the rates of charge supplied by the Reference Banks to the Agent under paragraph (d) below and expressed in pounds per £1
million. 

  

	(b)	 	For the purposes of this paragraph 2: 

  

	 	(i)	 	eligible liabilities and special deposit have the meanings given to them at the time of application of the formula by the Bank of England; 

  

	 	(ii)	 	fees rules means the then current rules on periodic fees in the Supervision Manual of the FSA Handbook; and 

  

	 	(iii)	 	tariff base has the meaning given to it in the fees rules. 

  

 77 

	(c)      (i)	 	In the application of the formulae, A, B, C and D are included as figures and not as percentages, e.g. if A = 0.5% and B = 15%, AB is calculated as 0.5 x 15. A negative result
obtained by subtracting D from B is taken as zero. 

  

	 	(ii)	 	Each rate calculated in accordance with a formula is, if necessary, rounded upward to four decimal places. 

  

	(d)      (i)	 	Each Reference Bank must supply to the Agent the rate of charge payable by that Reference Bank to the Financial Services Authority under the fees rules (calculated by that Reference
Bank as being the average of the rates of charge within fee-block Category A1 (Deposit acceptors) applicable to that Reference Bank but, for this purpose, applying any applicable discount and ignoring any minimum fee required under the fees rules)
and expressed in pounds per £1 million of the tariff base of that Reference Bank. 

  

	 	(ii)	 	Each Reference Bank must promptly notify the Agent of any change to the rate of charge. 

  

	(e)      (i)	 	Each Bank and each Reference Bank must supply to the Agent the information required by it to make a calculation of the rate for that Bank or Reference Bank. The Agent may assume
that this information is correct in all respects. 

  

	 	(ii)	 	If a Bank or a Reference Bank fails to do so, the Agent may assume that the Bank’s or that Reference Bank’s obligations in respect of cash ratio deposits, special deposits
and the fees rules are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the U.K. 

  

	 	(iii)	 	The Agent has no liability to any Party if its calculation over or under compensates any Bank. 

  

	2.	 	For a Bank lending from a Facility Office in a Participating Member State 

  

	 	(a)	 	The relevant rate for a Bank lending from a Facility Office in a Participating Member State is the percentage rate per annum notified by that Bank to the Agent as its cost of
complying with the minimum reserve requirements of the European Central Bank. 

  

	 	(b)	 	If a Bank fails to specify a rate under paragraph (a) above, the Agent will assume that the Bank has not incurred any such cost. 

  

	3.	 	Changes 

  
 The Agent may, after consultation with the Company and the Banks, notify all the Parties of any amendment to this Schedule which is required to reflect:

  

	 	(a)	 	any change in law or regulation; or 

  

	 	(b)	 	any requirement imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any successor authority). 

 
 Any notification will be, in the absence of manifest error, conclusive
and binding on all the Parties. 
  

 78 

 SCHEDULE 4 
  

FORM OF REQUEST 
  

	To:	 	  THE ROYAL BANK OF SCOTLAND PLC as Agent 

  

	From:	 	SCOTTISH POWER PLC 

 Date:
[            ] 
  
 Scottish Power plc—US$1,000,000,000 Revolving Credit Agreement  dated 12th June, 2003 
  

	1.	 	We wish to [borrow a [Facility A]/[Facility B] [Revolving Credit Loan/Swingline Loan/Term Loan]]/[arrange for a [Syndicate/Fronted] LC to be issued] as follows:

  

	 	(a)	 	[Utilisation/Drawdown] Date: [            ] 

  

	 	(b)	 	Original Dollar Amount: US$[            ] 

  

	 	(c)	 	Currency: [            ] 

  

	 	(d)	 	Term: [            ] 

  

	 	(e)	 	Payment/delivery instructions: [            ] 

  

	2.	 	We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Request. 

  

	3.	 	We confirm that the Utilisation will be used in accordance with Clause 3 (Purpose). 

  

	4.	 	We confirm that the borrowing of the above referenced Utilisation will not cause any borrowing limit binding on Scottish Power plc to be exceeded. 

  

	5.	 	[We attach a copy of the proposed Letter of Credit.] 

  
 By: 
  
 SCOTTISH POWER PLC 
 Authorised Signatory 
  

 79 

 SCHEDULE 5 
  

FORM OF NOVATION CERTIFICATE 
  

	To:	 	  THE ROYAL BANK OF SCOTLAND PLC as Agent 

	From:	 	[THE EXISTING BANK] and [THE NEW BANK]            Date:
[            ] 

  
 Scottish Power plc—US$1,000,000,000 Revolving Credit Agreement  
 dated 12th June, 2003

  
 We refer to Clause 30.3 (Procedure for novations). 
  

	1.	 	We [            ] (the Existing Bank) and
[            ] (the New Bank) agree to the Existing Bank and the New Bank novating all the Existing Bank’s rights and obligations referred to in the Schedule in accordance with
Clause 30.3 (Procedure for novations). 

  

	2.	 	The specified date for the purposes of 30.3(c) is [date of novation]. 

  

	3.	 	The Facility Office and address for notices of the New Bank for the purposes of Clause 36.2 (Addresses for notices) are set out in the Schedule. 

  

	4.	 	This Novation Certificate is governed by English law. 

  
 THE SCHEDULE 
  
 Rights and obligations to be novated 
  
 [Details of the rights and obligations of the Existing Bank to be novated]. 
  
 [New Bank] 
  
 [Facility Office Address for
notices] 
  
  

	 [Existing Bank]
	  	[New Bank]	  	THE ROYAL BANK OF SCOTLAND PLC
			
	 By:
	  	By:	  	By:
			
	 Date:
	  	Date:	  	Date:

  

 80 

 SCHEDULE 6 
  

FORM OF LEGAL OPINION OF ALLEN & OVERY 
  

	To:	 	The Finance Parties named as original parties 

 to the
Credit Agreement (as defined below). 
  
 [DATE], 2003 

 
 Dear Sirs, 
  
 Scottish Power UK plc (the “Company”)—US$1,000,000,000 Revolving Credit Agreement 
 dated [            ], 2003 (the “Credit Agreement”) 
  
 We have acted as legal advisers in England to The Royal Bank of Scotland plc (the
“Agent”) in connection with a Credit Agreement dated [            ], 2003 (the “Credit Agreement”) made between the Company as borrower, The Bank of
Tokyo-Mitsubishi, Ltd., Barclays Capital, Commerzbank AG (acting through Commerzbank Securities), HSBC Bank PLC, J.P. Morgan plc and The Royal Bank of Scotland plc as Mandated Lead Arrangers, the Banks (as defined therein) and the Agent. 

 
 Subject to the qualifications set out below and to any matters not disclosed to us, we are
of the opinion that, so far as the present laws of England are concerned: 
  

	(A)	 	Legal validity The Credit Agreement constitutes valid and legally binding obligations of the Company. 

  

	(B)	 	Stamp duties No stamp or registration duty or similar taxes or charges are payable in the United Kingdom in respect of the execution or delivery of the Credit Agreement.

  

	(C)	 	Registrations It is not necessary to register the Credit Agreement in any public office or elsewhere in England. 

  
 The qualifications to which this opinion is subject are as follows: 
  

	(i)	 	We assume the Credit Agreement has been duly authorised and entered into by each party to it. 

  

	(ii)	 	This opinion is subject to all insolvency and other laws affecting the rights of creditors generally. 

  

	(iii)	 	We assume that no foreign law affects the conclusions stated above. We assume, in particular, that, so far as the laws of Scotland are concerned, the Credit Agreement constitutes a
legal, valid, binding and enforceable obligations of the Company. In this regard we have relied on copies of the legal opinion referred to in paragraph 6 of Schedule 2 to the Credit Agreement. 

  

	(iv)	 	The term “enforceable” means that a document is of a type and form enforced by the English courts. It does not mean that each obligation will be enforced in accordance
with its terms. 

  

 81 

 Certain rights and obligations of the Company may be qualified by the non-conclusivity of certificates,
doctrines of good faith and fair conduct, the availability of equitable remedies and other matters, but in our view these qualifications would not defeat your legitimate expectations in any material respect. 
  
 This opinion is given for your sole benefit and may not be relied upon by or disclosed to any
other person. 
  
 Yours faithfully, 
  

 82 

 SCHEDULE 7 
  

FORM OF LEGAL OPINION OF MACLAY MURRAY & SPENS 
  
 The Royal Bank of Scotland plc (the “Agent”) 
 135 Bishopsgate

 London 
 EC2M 3UR 
 (as agent for the Finance Parties) 
  
 Dear Sirs, 
  
 You have asked for our opinion in connection with an agreement dated · 2003 between Scottish Power plc as borrower (the “Company”), The Bank of Tokyo Mitsubishi Ltd, Barclays Capital, Commerzbank Aktiengesellschaft (acting through Commerzbank Securities), HSBC Bank plc, J.P. Morgan plc and
The Royal Bank of Scotland plc as Mandated Lead Arrangers, the Original Banks (as defined therein), the Agent and The Royal Bank of Scotland plc as Swingline Agent (as defined therein) (the “Facility Agreement”). 
  
 Unless otherwise defined in this opinion, words and expressions defined in the Facility
Agreement shall bear the same meanings in this opinion. 
  
 For the purposes of
this opinion, we have examined copies of and base our opinion on the following documents: 
  

	(a)	 	an executed copy of the Facility Agreement; 

  

	(b)	 	a copy of the Memorandum and Articles of Association of the Company; 

  

	(c)	 	an online report relating to the Company obtained from the Registrar of Companies in Edinburgh on · 2003 (the “Company Search”); 

  

	(d)	 	a search of the Companies Section of the Register of Insolvencies dated · 2003
(the “Insolvency Search”); 

  

	(e)	 	a copy of the minutes of a meeting of the board of directors of the Company held on · 2003 (the “Directors’ Minutes”); 

  

	(f)	 	a certificate of a director of the Company confirming that the utilisation by the Company of the Facility (as defined in the Facility Agreement) (the “Director
Certificate”) in full would not cause any internal borrowing limit binding on the Company to be exceeded and that the Company is not unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986; and

  

	(g)	 	a certificate of an authorised signatory of the Company (the “Authorised Signatory Certificate”) certifying that each of the items in paragraphs (b) and (e) is
correct, complete and in full force and certifying the specimen signatures of the Company’s authorised 

  

 83 

	 	 
signatories. The Director Certificate and Authorised Signatory Certificate are herein together referred to as “the Certificates”).

  
 We have not made any other enquiries concerning the Company
and in particular we have not concerned ourselves with investigating or verifying any matters of fact or opinion (whether set out in any of the documents referred to above or elsewhere) other than as expressly stated herein. 
  
 We have assumed for the purposes of this opinion: 
  

	(i)	 	the capacity, power and authority of each of the Mandated Lead Arrangers, the Original Banks, the Agent and the Swingline Agent to enter into and perform their respective
obligations under the Facility Agreement and the due execution and delivery of the Facility Agreement by each of the Mandated Lead Arrangers, the Original Banks, the Agent and the Swingline Agent; 

  

	(ii)	 	that the Facility Agreement has been signed by · and · on behalf of the Company and that the Facility Agreement has been duly delivered; 

  

	(iii)	 	the conformity to original documents of all documents supplied to us as photocopies, specimen or facsimile copies; 

  

	(iv)	 	that each of the statements contained in the Certificates (on which we have relied without further inquiry) is true and correct as at the date hereof; 

  

	(v)	 	that the meeting of the board of directors of the Company held on · 2003 was
duly convened and held; 

  

	(vi)	 	that the information disclosed by the Company Search was accurate in all respects and that such Search did not fail to disclose any material information which had been delivered for
registration but which did not appear on the online report supplied by the Companies Registry in Edinburgh; 

  

	(vii)	 	that the Insolvency Search is complete and accurate in all respects and does not fail to disclose any material information; 

  

	(viii)	 	the Company has not passed a voluntary winding-up resolution, no petition has been presented or order made by the Court for the winding up, dissolution or administration of the
Company and no receiver, trustee, administrator or similar official has been appointed in relation to the Company or any of its assets or revenues; 

  

	(ix)	 	that the Facility Agreement constitutes legal, valid and binding obligations of the parties thereto under English law to which it is expressed to be subject and that the performance
of the obligations thereunder is not illegal or unenforceable by virtue of the law of any jurisdiction (other than Scotland) in which they are to be performed; and 

  

	(x)	 	that the execution and delivery of the Facility Agreement by the Company and the performance of its obligations thereunder is in the interests of the Company and that the Facility
Agreement has been entered into for bona fide commercial reasons and on arms length terms by each of the parties thereto. 

  
 We have not made any investigation of and do not express any opinion as to the laws of any jurisdiction outside Scotland and this opinion relates only to the laws of
Scotland as they exist at the date hereof. 
  

 84 

 Based upon and subject to the foregoing and subject to the reservations hereinafter referred to and to any matters not
disclosed to us, we are of the opinion that: 
  

	1.	 	The Company is a limited liability company duly incorporated under the laws of Scotland and has full corporate power and authority to execute, deliver and perform its obligations
under the Facility Agreement. 

  

	2.	 	The execution and delivery by the Company of the Facility Agreement and the performance of its obligations thereunder have been duly authorised by all requisite corporate action on
its part. 

  

	3.	 	The obligations of the Company under the Facility Agreement are valid and binding obligations of the Company under the law of Scotland and would be so treated in the Courts of
Scotland. 

  

	4.	 	The entry into and performance of the Facility Agreement by the Company and the transaction and matters to be implemented thereunder do not violate (i) Scottish Law or (ii) the
Memorandum and Articles of Association of the Company. 

  

	5.	 	It is not necessary to file, register or record the Facility Agreement with any court or authority in Scotland. 

  

	6.	 	No stamp, registration or other similar taxes or charges are payable in Scotland with respect to the execution or delivery of the Facility Agreement. 

  

	7.	 	The choice of English law to govern the Facility Agreement is valid and effective under the private international law of Scotland. Subject to the usual exceptions affecting such
matters as procedure, the availability of remedies and any provision which is repugnant to the law of Scotland, the law of England will accordingly be applied by the Courts of Scotland if any dispute arising from or contractual claim connected with
the Facility Agreement comes under their jurisdiction. A judgment rendered against the Company by a competent court in England and registered in Scotland pursuant to the provisions of the Civil Jurisdiction and Judgments Act 1982 will be enforceable
by the Scottish Courts. 

  

	8.	 	The submission by the Company to the jurisdiction of the courts of England is valid and binding on the Company. 

  
 The foregoing opinion is subject to the following qualifications: 
  

	(a)	 	We do not express any view on the particular remedies available on enforcement, such as specific implement or interdict, which are discretionary remedies. 

 

	(b)	 	The enforcement of the Facility Agreement may be limited by applicable laws relating to prescription, limitation, bankruptcy, liquidation, receivership, administration, insolvency
or other laws relating to creditors’ rights generally or by the application of rules of equity or public policy. 

  

	(c)	 	A Scottish court may refuse to give effect to any provisions of the Facility Agreement providing for the payment of legal costs and other costs, charges and expenses in respect of
unsuccessful litigation brought before such court or where that court has itself made an order for costs. 

  

	(d)	 	Any provision contained in the Facility Agreement to the effect that a calculation and/or certification will be conclusive and binding may not be effective if such calculation or

  

 85 

	 	 
certification is fraudulent or erroneous on its face and will not necessarily prevent judicial enquiry into the merit of any claim under the relative
document. 

  

 86 

 SCHEDULE 8 
  

FORMS OF LETTER OF CREDIT 
  
 PART 1 
  
 FORM OF FRONTED LC 
  

	To:	 	[Beneficiary] 

 (the Beneficiary) 
  
 [DATE] 
  
 Dear Sir, 
  
 Irrevocable Standby Letter of Credit no. [            ] 
  
 At the request of [            ],
[FRONTING BANK] (the Issuing Bank) issues this irrevocable standby letter of credit (Letter of Credit) in your favour on the following terms and conditions: 
  

	1.	 	Definitions 

  
 In this Letter of Credit: 
  
 Business Day means a day (other than a Saturday or a Sunday) on which banks are open for general business in London, Glasgow and [principal
financial centre of Optional Currency]. 
  
 Demand
means a demand for a payment under this Letter of Credit in the form of the schedule to this Letter of Credit. 
  
 Expiry Date means [            ]. 
  
 Total L/C Amount means
[            ]. 
  

	2.	 	Issuing Bank’s agreement 

  

	(a)	 	The Beneficiary may request a drawing [or drawings] under this Letter of Credit by giving to the Issuing Bank a duly completed Demand. A Demand may not be given after the Expiry
Date. 

  

	(b)	 	Subject to the terms of this Letter of Credit, the Issuing Bank unconditionally and irrevocably undertakes to the Beneficiary that, within [ten] Business Days of receipt by it of a
Demand validly presented under this Letter of Credit, it must pay to the Beneficiary the amount which is demanded for payment in that Demand. 

  

	(c)	 	The Issuing Bank will not be obliged to make a payment under this Letter of Credit if as a result the aggregate of all payments made by it under this Letter of Credit would exceed
the Total L/C Amount. 

  

 87 

	3.	 	Expiry 

  

	(a)	 	On [            ] pm ([London] time) on the Expiry Date the obligations of the Issuing Bank under this Letter of Credit
will cease with no further liability on the part of the Issuing Bank except for any Demand validly presented under this Letter of Credit that remains unpaid. 

  

	(b)	 	The Issuing Bank will be released from its obligations under this Letter of Credit on such date prior to the Expiry Date as is notified by the Beneficiary to the Issuing Bank as the
date upon which the obligations of the Issuing Bank under this Letter of Credit are released. 

  

	(c)	 	If the Issuing Bank is no longer under any obligation under this Letter of Credit, the Beneficiary must return the original of this Letter of Credit to the Issuing Bank.

  

	4.	 	Payments 

  
 All payments under this Letter of Credit must be made in [            ] and for value on the
due date to the account of the Beneficiary specified in the Demand. 
  

	5.	 	Delivery of Demand 

  
 Each Demand must be in writing, and may be given in person, by post or fax and must be received by the Issuing Bank before
[            ] pm ([London] time) on the Expiry Date at its address as follows: 
  
 [ 
  
                                        
                                        
                                        
         ] 
  

	6.	 	Assignment by Beneficiary 

  
 The Beneficiary’s rights under this Letter of Credit may not be assigned or transferred. 
  

	7.	 	Assignment by Issuing Bank 

  

	(a)	 	An Issuing Bank (the Existing Issuing Bank) may at any time, with the prior consent of the Beneficiary (which consent shall not be unreasonably withheld), transfer, assign or
novate any of its rights and/or obligations under this Letter of Credit to another bank or financial institution (the New Issuing Bank). 

  

	(b)	 	A transfer, assignment or novation of rights and/or obligations referred to in paragraph (a) above will be effective only if: 

  

	 	(i)	 	the Beneficiary returns the existing original copy of this Letter of Credit to the Existing Issuing Bank; and 

  

	 	(ii)	 	the New Issuing Bank and (where relevant) the Existing Issuing Bank issue one or more new Letters of Credit which set out the rights and/or obligations of the New Issuing Bank and
(where relevant) the Existing Issuing Bank following the relevant transfer, assignment or novation. 

  

 88 

	8.	 	UCP 500 

  
 Except to the extent it is inconsistent with the express terms of this Letter of Credit, this Letter of Credit is subject to the Uniform Customs and
Practice for Documentary Credits (as revised from time to time), International Chamber of Commerce Publication No. 500. 
  

	9.	 	Governing Law 

  
 This Letter of Credit is governed by English law. 
  

	10.	 	Jurisdiction 

  
 The English courts have exclusive jurisdiction to settle any dispute in connection with this Letter of Credit. 
  
 Yours faithfully, 
  
  
 [FRONTING BANK]

  
 By: 
  

 89 

 SCHEDULE [TO FRONTED LC] 
  
 FORM OF DEMAND 
  

	To:	 	[FRONTING BANK] 

  
 [DATE] 
  
 Dear Sirs 
  
 Irrevocable Standby Letter of
Credit no. [            ] issued in favour of [BENEFICIARY] (the Letter of Credit) 
  
 We refer to the Letter of Credit. Terms defined in the Letter of Credit have the same meaning when used in this Demand. 
  

	1.	 	We certify that the sum of [            ] is due [and has remained unpaid for at least
[            ] Business Days under [set out underlying contract or agreement]]. We therefore demand payment of the sum of
[            ]. 

  

	2.	 	Payment should be made to the following account: 

  
 Name: 
  
 Account Number: 
  
 Bank: 
  

	3.	 	The date of this Demand is not later than the Expiry Date. 

  
 Yours faithfully 
  
  
 (Authorised
Signatory)                             (Authorised Signatory) 
  
 For 
 [BENEFICIARY] 
  

 90 

 PART 2 
  
 FORM OF SYNDICATE LC 
  

	To:	 	[Beneficiary] 

	 	(the	 	Beneficiary) 

  
 [DATE] 
  
 Dear Sir, 
  
 Irrevocable
Standby Letter of Credit no. [            ] 
  
 At the request of [            ], the LC Banks (as defined below) issue this irrevocable standby letter of credit (Letter of Credit) in your favour on
the following terms and conditions: 
  

	1.	 	Definitions 

  
 In this Letter of Credit: 
  
 Agent means The Royal Bank of Scotland plc. 
  
 Business Day means a day (other than a Saturday or a Sunday) on which banks are open for general business in London, Glasgow and [principal
financial centre of Optional Currency]. 
  
 Demand
means a demand for a payment under this Letter of Credit in the form of Schedule 2 (Form of Demand) to this Letter of Credit. 
  
 Expiry Date means [            ]. 
  
 Individual Liability means, for each LC Bank, the amount set opposite
its name in Schedule 1 (LC Banks) under the heading “Individual Liability”. 
  
 LC Banks means the financial institutions listed in Schedule 1 (LC Banks). 
  
 Total L/C Amount means the aggregate of the Individual Liabilities of all the LC Banks, being at the date of this Letter of
Credit [            ]. 
  

	2.	 	LC Banks’ agreement 

  

	(a)	 	The Beneficiary may request a drawing [or drawings] under this Letter of Credit by giving to the Agent a duly completed Demand, which the Agent shall promptly forward to each LC
Bank together with details of the amount of each LC Bank’s participation in the drawing (the Relevant Amount). An LC Bank’s participation in a drawing shall be its pro rata share of that drawing, being the proportion which its
Individual Liabilities bears to the Total L/C Amount. A Demand may not be given after the Expiry Date. 

  

	(b)	 	Subject to the terms of this Letter of Credit, each LC Bank unconditionally and irrevocably undertakes to the Beneficiary that within [ten] Business Days of receipt by the Agent of
a Demand validly presented under this Letter of Credit, it must pay the Relevant Amount to the Beneficiary. 

  

 91 

	(c)	 	Without prejudice to the obligation to pay under paragraph (b) above, each LC Bank shall be entitled to make payment to the Beneficiary through the Agent. Each LC Bank irrevocably
and unconditionally authorises the Agent to pay the Relevant Amount to the Beneficiary 

  

	(d)	 	An LC Bank will not be obliged to make a payment under this Letter of Credit if as a result the aggregate of all payments made by it under this Letter of Credit would exceed its
Individual Liability. 

  

	3.	 	Expiry 

  

	(a)	 	On [            ] pm ([London] time) on the Expiry Date the obligations of the LC Banks under this Letter of Credit will
cease with no further liability on the part of any LC Bank except for any Demand validly presented under this Letter of Credit that remains unpaid. 

  

	(b)	 	Each LC Bank will be released from its obligations under this Letter of Credit on such date prior to the Expiry Date as is notified by the Beneficiary to the Agent as the date upon
which the obligations of the LC Banks under this Letter of Credit are released. 

  

	(c)	 	If the LC Banks are no longer under any obligation under this Letter of Credit, the Beneficiary must return the original of this Letter of Credit to the Agent.

  

	4.	 	Payments 

  
 All payments made by or on behalf of the LC Banks under this Letter of Credit must be made in
[            ] and for value on the due date to the account of the Beneficiary specified in the Demand. 
  

	5.	 	Delivery of Demand 

  
 Each Demand must be in writing, and may be given in person, by post or fax and must be received by the Agent before
[            ] pm ([London] time) on the Expiry Date at its address as follows: 
  
 The Royal Bank of Scotland plc 
 2.5
Devonshire Square 
 London EC2M 4BB 
  
 Facsimile number: +44 207 615 7673 
  
 Attention: Loans Administration 
  

	6.	 	Assignment by Beneficiary 

  
 The Beneficiary’s rights under this Letter of Credit may not be assigned or transferred. 
  

	7.	 	Assignment by an LC Bank 

  

	(a)	 	An LC Bank (the Existing LC Bank) may at any time, with the prior consent of the Beneficiary and the Agent (which consent shall not be unreasonably withheld), transfer,
assign or novate any of its rights and/or obligations under this Letter of Credit to another bank or financial institution (the New LC Bank). 

  

	(b)	 	A transfer, assignment or novation of rights and/or obligations referred to in paragraph (a) above will be effective only if: 

  

 92 

	 	(i)	 	the Beneficiary returns the existing original copy of this Letter of Credit to the Agent; and 

  

	 	(ii)	 	the Agent on behalf of the LC Banks issues a new Letter of Credit which sets out the rights and/or obligations of the LC Banks including the New LC Bank and (where relevant) the
Existing LC Bank following the relevant transfer, assignment or novation. 

  

	8.	 	Several obligations 

  
 The obligations of the LC Banks under this Letter of Credit are several. Failure of an LC Bank to carry out its obligations under this Letter of Credit
shall not relieve any other LC Bank of its obligations under this Letter of Credit. No LC Bank shall be responsible for the obligations of another LC Bank under this Letter of Credit. 
  

	9.	 	Agent 

  
 Each LC Bank has authorised the Agent to execute this Letter of Credit as its agent. Accordingly, the Agent shall not be responsible for the obligations
of any LC Bank under this Letter of Credit. 
  

	10.	 	UCP 500 

  
 Except to the extent it is inconsistent with the express terms of this Letter of Credit, this Letter of Credit is subject to the Uniform Customs and
Practice for Documentary Credits (as revised from time to time), International Chamber of Commerce Publication No. 500. 
  

	11.	 	Governing Law 

  
 This Letter of Credit is governed by English law. 
  

	12.	 	Jurisdiction 

  
 The English courts have exclusive jurisdiction to settle any dispute in connection with this Letter of Credit. 
  
 Yours faithfully, 
  
  
 [AGENT]

  

  
 as agent for 
  
 [List LC Banks] 
  

 93 

 SCHEDULE 1 [TO SYNDICATE LC] 
  
 LC BANKS 
  

	 LC Bank

	 	 Individual Liability

	 Total L/C Amount
	 	[ ]

  

 94 

 SCHEDULE 2 [TO SYNDICATE LC] 
  
 FORM OF DEMAND 
  
 To:    THE ROYAL BANK OF SCOTLAND PLC as Agent 
  
 [DATE] 
  
 Dear Sirs 
  
 Irrevocable Standby Letter of Credit no. [            ] issued in favour of [BENEFICIARY] (the Letter of
Credit) 
  
 We refer to the Letter of Credit. Terms defined in the Letter of
Credit have the same meaning when used in this Demand. 
  

	1.	 	We certify that the sum of [            ] is due [and has remained unpaid for at least
[            ] Business Days under [set out underlying contract or agreement]]. We therefore demand payment by the LC Banks of the sum of
[            ]. 

  

	2.	 	Payment should be made to the following account: 

  
 Name: 
  
 Account Number: 
  
 Bank: 
  

	3.	 	The date of this Demand is not later than the Expiry Date. 

  
 Yours faithfully 
  
  
 (Authorised
Signatory)                            (Authorised Signatory) 
  
 For 
 [BENEFICIARY] 
  

 95 

 SCHEDULE 9 
  

EXISTING BORROWINGS 
  

	 Description

	  	Final Maturity

	 2.5% 10,000,000 CHF EMTN
	  	30/9/2003
		
	 Variable 5,000,000 GBP EMTN
	  	3/12/2003
		
	 4.93% 20,000,000,000 ITL EMTN
	  	31/12/2003
		
	 5.3% 10,000,000 EUR EMTN
	  	29/6/2004
		
	 0% 10,000,000 EUR EMTN
	  	30/7/2004
		
	 Variable 5,000,000 GBP EMTN
	  	15/10/2004
		
	 6.63% 50,000,000 GBP EMTN
	  	26/11/2004
		
	 Variable 1,500,000,000 JPY EMTN
	  	7/6/2005
		
	 Variable 2,000,000,000 JPY EMTN
	  	27/6/2005
		
	 Variable 50,000,000 USD EMTN
	  	14/7/2005
		
	 Variable 50,000,000 USD EMTN
	  	8/8/2005
		
	 6.75% 500,000,000 CZK EMTN
	  	12/9/2005
		
	 6.9% 1,500,000,000 CZK EMTN
	  	21/9/2005
		
	 6.715% 25,000,000 GBP EMTN
	  	13/2/2008
		
	 5.25% 725,000,000 deutschemark bond
	  	8/4/2008
		
	 Variable 30,000,000 GBP EMTN
	  	17/6/2008
		
	 Variable 9,000,000 EUR EMTN
	  	30/6/2008
		
	 5.03% 125,000,000 NLG EMTN
	  	15/7/2008
		
	 Variable 7,000,000 GBP EMTN
	  	16/7/2009
		
	 Variable 20,000,000 EUR EMTN
	  	13/10/2009
		
	 6.625% 200,000,000 euro-sterling bond
	  	14/1/2010
		
	 Variable rate 650,000,000 Australian Dollar bond
	  	18/7/2011
		
	 8.375% 200,000,000 euro-sterling bond
	  	20/2/2017
		
	 5.9% 300,000,000 GBP EMTN
	  	22/2/2021
		
	 6.75% 250,000,000 euro-sterling bond
	  	29/5/2023
		
	 Retail Price Index Linked 175,000,000 GBP bond
	  	13/10/2024
		
	 6.125% 25,000,000 GBP EMTN
	  	14/4/2028
		
	 4.6% 10,000,000,000 JPY Note
	  	27/7/2029
		
	 5.75% 50,000,000 GBP EMTN
	  	9/12/2039
		
	 6.5% 100,000,000 GBP EMTN
	  	31/5/2041

  

 96 

	 Description

	  	Final Maturity

	 Variable 35,000,000 USD European Investment Bank loan
	  	16/9/2008
	 4.95% 30,000,000 GBP European Investment Bank loan
	  	3/2/2009
	 Variable 50,000,000 GBP European Investment Bank loan
	  	15/3/2010
	 6.28% 48,000,000 GBP European Investment Bank loan
	  	24/3/2010
	 5.75% 50,000,000 GBP European Investment Bank loan
	  	1/2/2011
		
	 Variable 3,600,000 GBP Loan Notes
	  	31/3/2006

  

 97 

 SCHEDULE 10 
  
 FORM OF CONFIDENTIALITY UNDERTAKING 
  

	To:	 	[Potential Bank] 

  

	Re:	 	US$1,000,000,000 credit agreement dated 12th June, 2003 between (amongst others) Scottish Power PLC (as Borrower) and the Royal Bank of Scotland Plc (as Agent) (the
Agreement) 

  
 Dear Sirs 
  
 We understand that you are considering participating in the Facilities. In consideration of
us agreeing to make available to you certain information, by your signature of a copy of this letter you agree as follows: 
  

	1.	 	CONFIDENTIALITY UNDERTAKING 

  
 You undertake: 
  

	 	(a)	 	to keep the Confidential Information confidential and not to disclose it to anyone except as provided for by paragraph 2 below and to ensure that the Confidential Information is
protected with security measures and a degree of care that would apply to your own confidential information; 

  

	 	(b)	 	to keep confidential and not disclose to anyone the fact that the Confidential Information has been made available or that discussions or negotiations are taking place or have taken
place between us in connection with the Facilities; 

  

	 	(c)	 	to use the Confidential Information only for the Permitted Purpose; 

  

	 	(d)	 	to use all reasonable endeavours to ensure that any person to whom you pass any Confidential Information (unless disclosed under paragraph 2(b) below) acknowledges and complies with
the provisions of this letter as if that person were also a party to it; and 

  

	 	(e)	 	not to make enquiries of any member of the Group or any of their officers, directors, employees or professional advisers relating directly or indirectly to the Facilities.

  

	2.	 	PERMITTED DISCLOSURE 

  
 We agree that you may disclose Confidential Information: 
  

	 	(a)	 	to members of the Participant Group and their officers, directors, employees and professional advisers to the extent necessary for the Permitted Purpose and to any auditors of
members of the Participant Group; 

  

	 	(b)	 	(i) where requested or required by any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body, (ii) where required by the rules of
any stock exchange on which the shares or other securities of any member of the Participant Group are listed or (iii) where required by the laws or 

  

 98 

	 	 
regulations of any country with jurisdiction over the affairs of any member of the Participant Group; or 

  

	 	(c)	 	with the prior written consent of us and the Borrower. 

  

	3.	 	NOTIFICATION OF REQUIRED OR UNAUTHORISED DISCLOSURE 

  
 You agree (to the extent permitted by law) to inform us of the full circumstances of any disclosure under paragraph 2(b) or upon becoming aware that
Confidential Information has been disclosed in breach of this letter. 
  

	4.	 	RETURN OF COPIES 

  
 If we so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently erase all copies of
Confidential Information made by you and use all reasonable endeavours to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases such Confidential Information and any copies made by them, in each
case save to the extent that you or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or regulatory body or in accordance with
internal policy, or where the Confidential Information has been disclosed under paragraph 2(b) above. 
  

	5.	 	CONTINUING OBLIGATIONS 

  
 The obligations in this letter are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us.
Notwithstanding the previous sentence, the obligations in this letter shall cease (a) if you become a party to or otherwise acquire (by assignment or sub participation) an interest, direct or indirect in the Facilities or (b) twelve months after you
have returned all Confidential Information supplied to you by us and destroyed or permanently erased all copies of Confidential Information made by you (other than any such Confidential Information or copies which have been disclosed under paragraph
2 above (other than sub-paragraph 2(a)) or which, pursuant to paragraph 4 above, are not required to be returned or destroyed). 
  

	6.	 	NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC. 

  
 You acknowledge and agree that: 
  

	 	(a)	 	neither we nor any of our officers, employees or advisers (each a Relevant Person) (i) make any representation or warranty, express or implied, as to, or assume any
responsibility for, the accuracy, reliability or completeness of any of the Confidential Information or any other information supplied by us or any member of the Group or the assumptions on which it is based or (ii) shall be under any obligation to
update or correct any inaccuracy in the Confidential Information or any other information supplied by us or any member of the Group or be otherwise liable to you or any other person in respect to the Confidential Information or any such information;
and 

  

	 	(b)	 	we or members of the Group may be irreparably harmed by the breach of the terms of this letter and damages may not be an adequate remedy; each Relevant Person or member of the Group
may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by you. 

  

 99 

	7.	 	NO WAIVER; AMENDMENTS, ETC 

  
 This letter sets out the full extent of your obligations of confidentiality owed to us in relation to the information the subject of this letter. No
failure or delay in exercising any right, power or privilege under this letter will operate as a waiver thereof nor will any single or partial exercise of any right, power or privilege preclude any further exercise thereof or the exercise of any
other right, power or privileges under this letter. The terms of this letter and your obligations under this letter may only be amended or modified by written agreement between us. 
  

	8.	 	INSIDE INFORMATION 

  
 You acknowledge that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be
regulated or prohibited by applicable legislation relating to insider dealing and you undertake not to use any Confidential Information for any unlawful purpose. 
  

	9.	 	NATURE OF UNDERTAKINGS 

  
 The undertakings given by you under this letter are given to us and (without implying any fiduciary obligations on our part) are also given for the
benefit of the Borrower and each other member of the Group. 
  

	10.	 	THIRD PARTY RIGHTS 

  

	(a)	 	Subject to paragraph 6 and paragraph 9 the terms of this letter may be enforced and relied upon only by you and us and the operation of the Contracts (Rights of Third Parties) Act
1999 is excluded. 

  

	(b)	 	Notwithstanding any provisions of this letter, the parties to this letter do not require the consent of any Relevant Person or any member of the Group to rescind or vary this letter
at any time. 

  

	11.	 	GOVERNING LAW AND JURISDICTION 

  
 This letter (including the agreement constituted by your acknowledgement of its terms) shall be governed by and construed in accordance with the laws of
England and the parties submit to the non-exclusive jurisdiction of the English courts. 
  

	12.	 	DEFINITIONS 

  
 In this letter (including the acknowledgement set out below): 
  
 Confidential Information means any information relating to the Borrower, the Group, and the Facilities, including, without limitation, the
information memorandum (if applicable), provided to you by us or any of our affiliates or advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information
which contains or is derived or copied from such information but excludes information that (a) is or becomes public knowledge other than as a direct or indirect result of any breach of this letter or (b) is known by you before the date the
information is disclosed to you by us or any of our affiliates or advisers or is lawfully obtained by you after that date, other than from a source which is connected with the Group and which, in either case, as far as you are aware, has not been
obtained in violation of, and is not otherwise subject to, any obligation of confidentiality; 
  

 100 

 Facilities means the facilities made available to the Borrower under the Agreement. 
  
 Group means the Borrower and each of its holding companies and
subsidiaries and each subsidiary of each of its holding companies (as each such term is defined in the Companies Act 1985); 
  
 Participant Group means you, each of your holding companies and subsidiaries and each subsidiary of each of your holding companies (as each such
term is defined in the Companies Act 1985); and 
  
 Permitted
Purpose means considering and evaluating whether to enter into the Facilities. 
  
 Please acknowledge your agreement to the above by signing and returning the enclosed copy. 
  
 Yours faithfully 
  
  

 For and on behalf of 
  
 [Lender]

  

	To:	 	[Lender] 

 The Borrower and each other member of the Group

  
 We acknowledge and agree to the above:

  

  
 For and on behalf of 
  
 [Potential Bank] 
  

 101 

 SIGNATORY 
  

SIGNATORIES TO THE FACILITY AGREEMENT 
  

		
	 Company
	  	 
		
	 SCOTTISH POWER PLC
	  	 
		
	 By:             ADRIAN COATS
	  	 
		
	 Mandated Lead Arrangers
	  	 
		
	 THE BANK OF TOKYO-MITSUBISHI, LTD.
	  	 
		
	 By:             AKIO WADA
	  	 
		
	 BARCLAYS CAPITAL
	  	 
		
	 By:             MICHAEL JOYNER
	  	 
		
	 COMMERZBANK AKTIENGESELLSCHAFT
	  	 
		
	 By:             JONATHAN BOURNE
	  	ANDREA SUMNER
		
	 HSBC BANK PLC
	  	 
		
	 By:             RACHEL WATSON
	  	 
		
	 J.P. MORGAN PLC
	  	 
		
	 By:             GUY WYLIE
	  	 
		
	 THE ROYAL BANK OF SCOTLAND PLC
	  	 
		
	 By:             JOHN HARE
	  	 

  

 102 

		
	 Agent
	  	 
		
	 THE ROYAL BANK OF SCOTLAND PLC
	  	 
		
	 By:             JOHN HARE
	  	 
		
	 Swingline Agent
	  	 
		
	 THE ROYAL BANK OF SCOTLAND PLC, NEW YORK BRANCH
	  	 
		
	 By:             JOHN HARE
	  	 
		
	 Original Banks
	  	 
		
	 ABN AMRO BANK N.V.
	  	 
		
	 By:             MARTYN TAPLIN
	  	KIM SLATER
		
	 BANK ONE, NA
	  	 
		
	 By:             DENNIS CONSTANT
	  	 
		
	 THE BANK OF TOKYO-MITSUBISHI, LTD.
	  	 
		
	 By:             AKIO WADA
	  	 
		
	 BARCLAYS BANK PLC
	  	 
		
	 By:             MICHAEL JOYNER
	  	 
		
	 BNP PARIBAS, LONDON BRANCH
	  	 
		
	 By:             ANDREW HASTINGS
	  	TARIQ KAZI
		
	 BNP PARIBAS, NEW YORK BRANCH
	  	 
		
	 By:             RALPH SCHOLTZ
	  	TIMOTHY F. VINCENT
		
	 CDC FINANCE—CDC IXIS
	  	 
		
	 By:             FLORENCE SOULE DE LAFONT
	  	HENRI MALICK

  

 103 

		
	 CITIBANK, N.A.
	  	 
		
	 By:             NIELS C. KIRK
	  	 
		
	 COMMERZBANK AKTIENGESELLSCHAFT
	  	 
		
	 By:             JONATHAN BOURNE
	  	ANDREA SUMNER
		
	 CRÉDIT AGRICOLE INDOSUEZ
	  	 
		
	 By:             RUPERT DOUGALL
	  	BRIAN SINCLAIR
		
	 CREDIT SUISSE FIRST BOSTON, LONDON BRANCH
	  	 
		
	 By:             NELL CADY-CRUZE
	  	GARRETT LYNSKEY
		
	 CREDIT SUISSE FIRST BOSTON, CAYMAN ISLAND BRANCH
	  	 
		
	 By:             SARAH WU
	  	DAVID J. DODD
		
	 DEUTSCHE BANK AG LONDON
	  	 
		
	 By:             RICHARD SEDLACEK
	  	 
		
	 DEUTSCHE BANK AG, NEW YORK BRANCH
	  	 
		
	 By:             RICHARD SEDLACEK
	  	 
		
	 FLEET NATIONAL BANK
	  	 
		
	 By:             ROBERT SULLIVAN
	  	 
		
	 HSBC BANK PLC
	  	 
		
	 By:             ANDREW AITKEN
	  	 

  

 104 

		
	 ING BANK N.V., LONDON BRANCH
	  	 
		
	 By:      ANJILA THOMAS
	  	GERALD WALKER
		
	 JPMORGAN CHASE BANK
	  	 
		
	 By:      MICHAEL HOLLAND
	  	 
		
	 MERRILL LYNCH BANK USA
	  	 
		
	 By:      LOUIS ALDER
	  	 
		
	 MORGAN STANLEY BANK
	  	 
		
	 By:      RICHARD B. FELIX
	  	 
		
	 NATIONAL AUSTRALIA BANK LIMITED
 (A.B.N. 12 004 044 937)
	  	 
		
	 By:      D.J. ROBERTS
	  	 
		
	 THE ROYAL BANK OF SCOTLAND PLC
	  	 
		
	 By:      JOHN HARE
	  	 
		
	 TD BANK EUROPE LIMITED
	  	 
		
	 By:      GRAEME FRANCIS
	  	 
		
	 TORONTO DOMINION (TEXAS), INC.
	  	 
		
	 By:      MARK BAIRD
	  	 
		
	 UBS AG
	  	 
		
	 By:      ANDREW SUDLOW
	  	JUDITH CAMPBELL

  

 105

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