Document:

Exhibit
4.2

      

      
        THE ROYAL BANK OF SCOTLAND GROUP PLC

        as
Issuer

      

       

       

      

      TO

       

       

      

      THE BANK OF NEW YORK
MELLON

      acting through its London
Branch

      as
Trustee

       

      

      

      FORM
OF INDENTURE

      

       

      

      

      Subordinated
Debt Securities

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      THE ROYAL
BANK OF SCOTLAND GROUP plc

      

      Reconciliation
and tie between Trust Indenture Act of 1939, as amended by the Trust Indenture
Reform Act of 1990, and Subordinated Debt Securities Indenture, dated as of
[                    
].

      

      
        	
                Trust
      Indenture

                Act
      Section

              	 
      	
                
                  Subordinated
      Debt

                

                
                  Securities
      Indenture

                

                Section

              
	
                §310

              	
                (a)(1)

              	 	
                6.09

              
	 
      	
                (a)(2)

              	 	
                6.09

              
	 
      	
                (a)(3)

              	 
      	
                Not
      Applicable

              
	 
      	
                (a)(4)

              	 
      	
                Not
      Applicable

              
	 
      	
                (b)

              	 	
                6.08,
      6.10

              
	 
      	
                (c)

              	 
      	
                Not
      Applicable

              
	
                §311

              	
                (a)

              	 	
                6.13

              
	 
      	
                (b)

              	 	
                6.13

              
	 
      	
                (b)(2)

              	 
      	
                7.03(a),
      7.03(b)

              
	 
      	
                (c)

              	 
      	
                Not
      Applicable

              
	
                §312

              	
                (a)

              	 
      	
                7.01,
      7.02(a)

              
	 
      	
                (b)

              	 
      	
                7.02(b)

              
	 
      	
                (c)

              	 
      	
                7.02(c)

              
	
                §313

              	
                (a)

              	 
      	
                7.03(a)

              
	 
      	
                (b)

              	 
      	
                7.03(a)

              
	 
      	
                (c)

              	 
      	
                1.06,
      7.03(a)

              
	 
      	
                (d)

              	 
      	
                7.03(b)

              
	
                §
      314

              	
                (a)

              	 	
                7.04,
      10.06

              
	 
      	
                (b)

              	 
      	
                Not
      Applicable

              
	 
      	
                (c)(1)

              	 	
                1.02

              
	 
      	
                (c)(2)

              	 	
                1.02

              
	 
      	
                (c)(3)

              	 
      	
                Not
      Applicable

              
	 
      	
                (d)

              	 
      	
                Not
      Applicable

              
	 
      	
                (e)

              	 	
                1.02

              
	 
      	
                (f)

              	 
      	
                Not
      Applicable

              
	
                §315

              	
                (a)

              	 	
                6.01

              
	 
      	
                (b)

              	 
      	
                6.02,
      7.03(a)

              
	 
      	
                (c)

              	 	
                6.01

              
	 
      	
                (d)

              	 	
                6.01

              
	 
      	
                (d)(1)

              	 	
                6.01

              
	 
      	
                (d)(2)

              	 	
                6.01

              
	 
      	
                (d)(3)

              	 	
                6.01

              
	 
      	
                (e)

              	 	
                5.14

              

      

      

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      

      
        	
                §316

              	
                (a)(1)(A)

              	
                5.02,
      5.12

              
	 
      	
                (a)(l)(B)

              	
                5.13

              
	 
      	
                (a)(2)

              	
                Not
      Applicable

              
	 
      	
                (a)(last
      sentence)

              	
                1.01

              
	 
      	
                (b)

              	
                5.08

              
	
                §317

              	
                (a)(1)

              	
                5.03

              
	 
      	
                (a)(2)

              	
                5.04

              
	 
      	
                (b)

              	
                10.03

              
	
                §318

              	
                (a)

              	
                1.07

              

      

      

      

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

      

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

       

      
        	
                TABLE
      OF CONTENTS

              	 
      
	 	 
	 
      	
                PAGE

              
	
                ARTICLE
      1

              	 
      
	
                DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

              	 
      
	 	 
	
                Section
      1.01.  Definitions

              	
                8

              
	
                Section
      1.02.  Compliance
      Certificates and Opinions

              	
                17

              
	
                Section
      1.03.  Form of
      Documents Delivered to Trustee

              	
                18

              
	
                Section
      1.04.  Acts of
      Holders

              	
                18

              
	
                Section
      1.05.  Notices, Etc. to
      Trustee and Company

              	
                19

              
	
                Section
      1.06.  Notice
      to Holders; Waiver

              	
                19

              
	
                Section
      1.07.  Conflict with
      Trust Indenture Act

              	
                20

              
	
                Section
      1.08.  Effect
      of Headings and Table of Contents

              	
                21

              
	
                Section
      1.09.  Successors and
      Assigns

              	
                21

              
	
                Section
      1.10.  Separability
      Clause

              	
                21

              
	
                Section
      1.11.  Benefits of
      Subordinated Debt Securities Indenture

              	
                21

              
	
                Section
      1.12.  Governing
      Law

              	
                21

              
	
                Section
      1.13.  Saturdays,
      Sundays and Legal Holidays

              	
                21

              
	
                Section
      1.14.  Appointment of
      Agent for Service

              	
                22

              
	
                Section
      1.15.  Calculation
      Agent

              	
                22

              
	 	 
	
                ARTICLE
      2

              	 
      
	
                SUBORDINATED DEBT SECURITY FORMS

              	 
      
	 	 
	
                Section
      2.01.  Forms
      Generally

              	
                22

              
	
                Section
      2.02.  Form of
      Trustee’s Certificate of Authentication

              	
                23

              
	 	 
	
                ARTICLE
      3

              	 
      
	
                THE SUBORDINATED DEBT SECURITIES

              	 
      
	 	 
	
                Section
      3.01.  Amount
      Unlimited, Issuable in Series

              	
                24

              
	
                Section
      3.02.  Denominations

              	
                27

              
	
                Section
      3.03.  Execution,
      Authentication, Delivery and Dating

              	
                27

              
	
                Section
      3.04.  Temporary
      Subordinated Debt Securities

              	
                28

              
	
                Section
      3.05.  Registration,
      Registration of Transfer and Exchange

              	
                29

              
	
                Section
      3.06.  Mutilated,
      Destroyed, Lost and Stolen Subordinated Debt Securities

              	
                33

              
	
                Section
      3.07.  Payment; Interest
      Rights Preserved

              	
                34

              
	
                Section
      3.08.  Persons
      Deemed Owners

              	
                36

              
	
                Section
      3.09.  Cancellation

              	
                36

              
	
                Section
      3.10.  Computation of
      Interest

              	
                36

              
	
                Section
      3.11.  Cusip
      Numbers

              	
                36

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      

      
        	
                ARTICLE
      4

              	 
      
	
                SATISFACTION AND DISCHARGE

              	 
      
	 	 
	
                Section
      4.01.  Satisfaction and
      Discharge of Subordinated Debt Securities Indenture

              	
                37

              
	
                Section
      4.02.  Application of
      Trust Money

              	
                38

              
	
                Section
      4.03.  Repayment to
      Company

              	
                38

              
	 	 
	
                ARTICLE
      5

              	 
      
	
                REMEDIES

              	 
      
	 	 
	
                Section
      5.01.  Events
      of Default

              	
                39

              
	
                Section
      5.02.  Acceleration of
      Maturity; Rescission and Annulment

              	
                39

              
	
                Section
      5.03.  Defaults;
      Collection of Indebtedness and Suits for Enforcement
      by Trustee

              	
                40

              
	
                Section
      5.04.  Trustee
      May File Proofs of Claim

              	
                41

              
	
                Section
      5.05.  Trustee
      May Enforce Claims Without Possession of Subordinated
      Debt Securities

              	
                42

              
	
                Section
      5.06.  Application of
      Money Collected

              	
                43

              
	
                Section
      5.07.  Limitation on
      Suits

              	
                43

              
	
                Section
      5.08.  Unconditional
      Right of Holders to Receive Principal, Premium
      and Interest, if any

              	
                44

              
	
                Section
      5.09.  Restoration of
      Rights and Remedies

              	
                44

              
	
                Section
      5.10.  Rights
      and Remedies Cumulative

              	
                44

              
	
                Section
      5.11.  Delay
      or Omission Not Waiver

              	
                45

              
	
                Section
      5.12.  Control
      by Holders

              	
                45

              
	
                Section
      5.13.  Waiver
      of past Defaults

              	
                45

              
	
                Section
      5.14.  Undertaking for
      Costs

              	
                46

              
	 	 
	
                ARTICLE
      6

              	 
      
	
                THE TRUSTEE

              	 
      
	 	 
	
                Section
      6.01.  Certain
      Duties and Responsibilities

              	
                46

              
	
                Section
      6.02.  Notice
      of Defaults

              	
                46

              
	
                Section
      6.03.  Certain
      Rights of Trustee

              	
                47

              
	
                Section
      6.04.  Not
      Responsible for Recitals or Issuance of Subordinated Debt
      Securities

              	
                48

              
	
                Section
      6.05.  May
      Hold Subordinated Debt Securities

              	
                48

              
	
                Section
      6.06.  Money
      Held in Trust

              	
                49

              
	
                Section
      6.07.  Compensation and
      Reimbursement

              	
                49

              
	
                Section
      6.08.  Disqualification;
      Conflicting Interests

              	
                50

              
	
                Section
      6.09.  Corporate Trustee
      Required; Eligibility

              	
                50

              
	
                Section
      6.10.  Resignation and
      Removal; Appointment of Successor

              	
                50

              
	
                Section
      6.11.  Acceptance of
      Appointment by Successor

              	
                52

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

              	
                54

              

      

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Section
      6.13.  Preferential
      Collection of Claims

              	
                54

              
	
                Section
      6.14.  Appointment of
      Authenticating Agent

              	
                54

              
	 	 
	
                ARTICLE
      7

              	 
      
	
                HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

              	 
      
	 	 
	
                Section
      7.01.  Company
      to Furnish Trustee Names and Addresses of Holders

              	
                56

              
	
                Section
      7.02.  Preservation of
      Information; Communication to Holders

              	
                56

              
	
                Section
      7.03.  Reports
      by Trustee

              	
                57

              
	
                Section
      7.04.  Reports
      by Company

              	
                58

              
	 	 
	
                ARTICLE
      8

              	 
      
	
                CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

              	 
      
	 	 
	
                Section
      8.01.  Company
      May Consolidate, Etc., Only on Certain Terms

              	
                58

              
	
                Section
      8.02.  Successor
      Corporation Substituted

              	
                59

              
	
                Section
      8.03.  Assumption of
      Obligations

              	
                59

              
	 	 
	
                ARTICLE
      9

              	 
      
	
                SUPPLEMENTAL INDENTURES

              	 
      
	 	 
	
                Section
      9.01.  Supplemental
      Indentures without Consent of Holders

              	
                61

              
	
                Section
      9.02.  Supplemental
      Indentures with Consent of Holders

              	
                62

              
	
                Section
      9.03.  Execution of
      Supplemental Indentures

              	
                64

              
	
                Section
      9.04.  Effect
      of Supplemental Indentures

              	
                64

              
	
                Section
      9.05.  Conformity with
      Trust Indenture Act

              	
                64

              
	
                Section
      9.06.  Reference in
      Subordinated Debt Securities to Supplemental Indentures

              	
                64

              
	 	 
	
                ARTICLE
      10

              	 
      
	
                COVENANTS

              	 
      
	 	 
	
                Section
      10.01.  Payment Of
      Principal, Premium, and Interest

              	
                64

              
	
                Section
      10.02.  Maintenance of
      Office or Agency

              	
                65

              
	
                Section
      10.03.  Money
      for Payments to be Held in Trust

              	
                65

              
	
                Section
      10.04.  Additional
      Amounts

              	
                67

              
	
                Section
      10.05.  Corporate
      Existence

              	
                69

              
	
                Section
      10.06.  Statement as to
      Compliance

              	
                69

              
	
                Section
      10.07.  Original Issue
      Document

              	
                69

              
	 	 
	
                ARTICLE
      11

              	 
      
	
                REDEMPTION OF SUBORDINATED DEBT SECURITIES

              	 
      
	 	 
	
                Section
      11.01.  Applicability of
      Article

              	
                69

              
	
                Section
      11.02.  Election to
      Redeem; Notice to Trustee

              	
                69

              

      

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      

      
        	
                Section
      11.03.  Selection by
      Trustee of Subordinated Debt Securities to Be Redeemed

              	
                70

              
	
                Section
      11.04.  Notice
      of Redemption

              	
                70

              
	
                Section
      11.05.  Deposit of
      Redemption Price

              	
                71

              
	
                Section
      11.06.  Subordinated Debt
      Securities Payable on Redemption Date

              	
                71

              
	
                Section
      11.07.  Subordinated Debt
      Securities Redeemed in Part

              	
                72

              
	
                Section
      11.08.  Optional
      Redemption Due to Changes in Tax Treatment

              	
                72

              
	
                Section
      11.09.  [Reserved]

              	
                73

              
	 	 
	
                ARTICLE
      12

              	 
      
	
                SUBORDINATION OF SUBORDINATED DEBT SECURITIES

              	 
      
	 	 
	
                Section
      12.01.  Subordinated Debt
      Securities Subordinate to Claims of Senior
      Creditors

              	
                73

              
	
                Section
      12.02.  Provisions Solely
      to Define Relative Rights

              	
                74

              
	
                Section
      12.03.  Trustee to
      Effectuate Subordination

              	
                74

              
	
                Section
      12.04.  No
      Waiver of Subordination Provisions

              	
                74

              
	
                Section
      12.05.  Notice
      to Trustee

              	
                74

              
	
                Section
      12.06.  Reliance on
      Judicial Order or Certificate of Liquidating Agent

              	
                75

              
	
                Section
      12.07.  Trustee Not
      Fiduciary for Senior Creditors

              	
                76

              
	
                Section
      12.08.  Rights
      of Trustee as Senior Creditor; Preservation of Trustee’s
      Rights

              	
                76

              
	
                Section
      12.09.  Article
      Applicable to Paying Agents

              	
                76

              
	
                Section
      12.10.  Exchanges Not
      Deemed Payment

              	
                76

              
	 	 
	
                ARTICLE
      13

              	 
      
	
                EXCHANGE OF SUBORDINATED DEBT SECURITIES

              	 
      
	 	 
	
                Section
      13.01.  Applicability of
      Article

              	
                77

              
	
                Section
      13.02.  Election to
      Exchange; Notice to Trustee

              	
                77

              
	
                Section
      13.03.  Notice
      of Exchange

              	
                77

              
	
                Section
      13.04.  Deposit of
      Interest

              	
                78

              
	
                Section
      13.05.  Surrender of
      Subordinated Debt Securities

              	
                78

              
	
                Section
      13.06.  Issuance of
      Dollar Preference Shares or Exchange Securities

              	
                78

              
	
                Section
      13.07.  Effect
      of Exchange

              	
                79

              
	
                Section
      13.08.  Validity of
      Dollar Preference Shares or Exchange Securities

              	
                80

              
	
                Section
      13.09.  Legal
      and Regulatory Compliance

              	
                80

              
	
                Section
      13.10.  Taxes
      and Charges

              	
                81

              
	
                Section
      13.11.  Trustee Not
      Liable

              	
                81

              
	 	 
	
                TESTIMONIUM

              	
                82

              
	
                SIGNATURES
      AND SEALS

              	
                83

              

      

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      

      SUBORDINATED
DEBT SECURITIES INDENTURE, dated as of
[                   
] between THE ROYAL BANK OF SCOTLAND GROUP plc, a company incorporated in Great
Britain and registered in Scotland (the “Company”), having its
registered office at 36 St Andrew Square, Edinburgh EH2 2YB, United Kingdom and
THE BANK OF NEW YORK MELLON, (previously named The Bank of New York), acting
through its London Branch, a banking corporation duly organized and existing
under the laws of the State of New York as Trustee (the “Trustee”), having its
Corporate Trust Office at One Canada Square, London E14 5AL.

      

      RECITALS
OF THE COMPANY

      

      The
Company has duly authorized the execution and delivery of this Subordinated Debt
Securities Indenture to provide for the issuance from time to time of its
Subordinated Debt Securities (the “Subordinated Debt
Securities”), to be issued in one or more series, represented by one or
more Global Securities in registered form without coupons for payments attached,
or represented by definitive Subordinated Debt Securities in registered form
without coupons for payments attached, the amount and terms of each such series
to be determined as hereinafter provided.

      

      All
things necessary to make this Subordinated Debt Securities Indenture a valid and
binding agreement of the Company, in accordance with its terms, have been
done.

      

      NOW,
THEREFORE, THIS SUBORDINATED DEBT SECURITIES INDENTURE WITNESSETH:

      

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

       

      ARTICLE
1

      DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

      

      Section
1.01. Definitions. For
all purposes of this Subordinated Debt Securities Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

      

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

      

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

      

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

      

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

      

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

      

      (5)     any
reference to an “Article” or a “Section” refers to an Article
or Section of this Subordinated Debt Securities Indenture.

      

      Certain
terms, used principally in Articles 6 and 13, are defined in those
Articles.

      

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

      

      “Additional Amounts” shall have
the meaning set forth in Section 10.04, of this Agreement.

      

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

      

      “ADR Deposit Agreement” means
the Deposit Agreement dated as of August 17, 1992, amended and restated as of
February 8, 1999, as further amended and restated as of November 2, 2001, and as
may be further amended from time to time between the Company and The Bank of New
York Mellon (previously named The Bank of New York) and the holders from time to
time of American Depositary Receipts issued thereunder.

      

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

      

      “Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled
by or under direct or indirect common control with such specified Person. For
the purposes of this definition, “control” when used with
respect to any specified Person means the power to direct the

       

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

       

      management
and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled “ have meanings
correlative to the foregoing.

      

      “Agent Member” means a member
of, or participant in, any Depositary.

      

      “Auditors” means the Auditors
from time to time of the Company or if there shall be joint Auditors of the
Company any one or more of such joint Auditors.

      

      “Authenticating Agent” means
any Person authorized by the Trustee to act on behalf of the Trustee to
authenticate Subordinated Debt Securities.

      

      “Authorized Newspaper” means a
newspaper in an official language of the country of publication customarily
published at least once a day for at least five days in each calendar week and
of general circulation in the place in connection with which the term is used,
which, in the United Kingdom, will be the Financial Times of London, if
practicable, and which, in the United States, will be the Wall Street Journal, if
practicable, and which, in Luxembourg, will be the Luxemburger Wort, if
practicable and for so long as and only with respect to any Subordinated Debt
Securities listed on the Luxembourg Stock Exchange, and if it shall be
impracticable in the opinion of the Trustee to make any publication of any
notice required hereby in any such newspaper, shall mean any publication or
other notice in lieu thereof which is made or given with the approval of the
Trustee.

      

      “Board of Directors” means
either the board of directors, or any committee of such board duly authorized to
act with respect hereto, of the Company, which board of directors or committee
may, to the extent permitted by applicable law, delegate its
authority.

      

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

      

      “Business Day” means, with
respect to any Place of Payment, except as may otherwise be provided in the form
of Subordinated Debt Securities of any particular series, each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions
in that Place of Payment are authorized or obligated by law or executive order
to close.

      

      “Calculation Agent” means the
Person, if any, authorized by the Company to calculate the interest rate or
other amounts from time to time in relation to any series of Subordinated Debt
Securities.

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      
 

      “Clearstream Luxembourg” means,
Clearstream Banking, société anonyme, or its nominee or
its or their successor.

      

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

      

      “Company” means the Person
named as the “Company”
in the first paragraph of this Subordinated Debt Securities Indenture until a
successor corporation shall have become such pursuant to the applicable
provisions of this Subordinated Debt Securities Indenture, and thereafter “Company” shall mean such
successor corporation.

      

      “Company Request” and “Company Order” mean,
respectively, a written request or order signed in the name of the Company by an
Executive Director or Director or the Secretary or a Deputy or Assistant
Secretary, and delivered to the Trustee.

      

      “Corporate Trust Office” means
the office of the Trustee in which its corporate trust business is principally
administered, located at One Canada Square, London E14 5AL (Attention: Corporate
Trust Office, Facsimile: +44 20 7964 2536).

      

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

      

      “Default” has the meaning
specified in Section 5.03.

      

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

      

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

      

      “Deferred Record Date”, when
used for the interest payable on any Deferred Payment Date on registered
Subordinated Debt Securities of any series, means the date specified for the
purpose pursuant to Section 3.01.

      

      “Depositary” means, with
respect to any series of Subordinated Debt Securities, a clearing agency that is
designated to act as Depositary for the Global Securities evidencing all or part
of such Subordinated Debt Securities as contemplated by Section
3.01.

      

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

       

       

      
        
          
          

        

        
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      “Dollar Preference Shares”
means a designated series of non-cumulative dollar preference shares, nominal
value of $.01 each, of the Company for which, if applicable to a particular
series of Subordinated Debt Securities, the Company may exchange or convert any
series of Subordinated Debt Securities.

      

      “DTC” means the Depository
Trust & Clearing Company or its nominee or its or their
successor.

      

      “euro” or “€” means the single currency
of the participating member states in the Third Stage of European economic and
monetary union pursuant to the Treaty establishing the European Community (as
amended from time to time). “participating member states”
means those member states of the European Union from time to time which adopt a
single, shared currency in the Third Stage, as defined and identified in the EMU
legislation.

      

      “Euroclear” means, the
Euroclear Bank S.A./N.V. as operator of the Euroclear System, or its nominee, or
its or their successor.

      

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

      

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

      

      “Exchange Date”, when used with
respect to any applicable series of Subordinated Debt Securities, has the
meaning specified in Section 13.03.

      

      “Exchange Securities” has the
meaning specified in Section 3.01(l).

      

      “Foreign Currency” means the
euro or any currency issued by the government of any country (or a group of
countries or participating member states) other than the United States which as
at the time of payment is legal tender for the payment of public and private
debts

      

      “Foreign Government Securities”
means with respect to Subordinated Debt Securities of any series that are
denominated in a Foreign Currency, non- callable (i) direct obligations of the
participating member state or government that issued such Foreign Currency for
the payment of which obligations its full faith and credit is pledged or (ii)
obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of such participating member state or government, the payment of
which obligations is unconditionally guaranteed as a full faith and credit
obligation of such participating member state or government. For the avoidance
of doubt, for all purposes hereof, euro shall be deemed to have been issued by
each participating member state from time to time.

      

      

      
        
          
          

        

        
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      “Global Security” means a
global certificate evidencing all or part of a series of Subordinated Debt
Securities, authenticated and delivered to the Holder and registered in the name
of the Holder or its nominee.

      

      “Holder” means a Person in
whose name a Subordinated Debt Security in global or definitive form is
registered in the Subordinated Debt Security Register.

      

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

      

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

      

      “Liquidator” has the meaning
specified in Section 12.06.

      

      “Maturity”, when used with
respect to any Subordinated Debt Security, means the date, if any, on which the
principal of such Subordinated Debt Security becomes due and payable as therein
or herein provided, whether by call for redemption, winding-up of the Company or
otherwise.

      

      “Officer’s Certificate” means a
certificate delivered to the Trustee and signed by an Executive Director or an
Assistant Director or the Secretary or a Deputy or Assistant Secretary of the
Company.

      

      “Opinion of Counsel” means a
written opinion of legal advisors, who may be an employee of or legal advisors
for the Company or other legal advisors.

      

      “Original Issue Discount
Security” means any Subordinated Debt Security which provides for an
amount less than the principal amount to be due and payable upon a declaration
of the Maturity thereof pursuant to Section 5.02.

      

      “Outstanding”, when used with
respect to Subordinated Debt Securities or any series of Subordinated Debt
Securities means, as of the date of determination, all Subordinated Debt
Securities or all Subordinated Debt Securities of such series, as the case may
be, theretofore authenticated and delivered under this Subordinated Debt
Securities Indenture, except:

      

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

      

      (ii)    Subordinated
Debt Securities, or portions thereof, for whose payment or redemption money,
U.S. Government Obligations or Foreign Government Securities in the necessary
amount have been theretofore deposited with the Trustee or any Paying Agent
(other than the

       

       

      
        
          
          

        

        
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      Company)
in trust or set aside and segregated in trust by the Company (if the Company
shall act as its own Paying Agent) for the Holders of such Subordinated Debt
Securities; provided,
that, if such Subordinated Debt Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Subordinated Debt Securities
Indenture or provision therefor satisfactory to the Trustee has been made;
and

      

      (iii) 
   Subordinated Debt
Securities which have been paid pursuant to Section 11.06 or in exchange for or
in lieu of which other Subordinated Debt Securities have been authenticated and
delivered pursuant to this Subordinated Debt Securities Indenture, other than
any such Subordinated Debt Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Subordinated Debt
Securities are held by a bona fide purchaser in whose hands such Subordinated
Debt Securities are valid obligations of the Company;

      

      provided, however, that in
determining whether the Holders of the requisite principal amount of the
Outstanding Subordinated Debt Securities of any series have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, (i) the
principal amount of a Subordinated Debt Security denominated in a Foreign
Currency shall be the Dollar equivalent, determined on the date of original
issuance of such Subordinated Debt Security, of the principal amount of such
Subordinated Debt Security; and (ii) Subordinated Debt Securities beneficially
owned by the Company or any other obligor upon the Subordinated Debt Securities
or any Affiliate of the Company or of such other obligor shall be disregarded
and deemed not to be Outstanding except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Subordinated Debt Securities which a
Responsible Officer of the Trustee actually knows to be so beneficially owned
shall be so disregarded; provided, further, however,
that Subordinated Debt Securities so beneficially owned which have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Subordinated Debt Securities and that the pledgee is not the Company or any
other obligor upon the Subordinated Debt Securities or any Affiliate of the
Company or of such other obligor.

      

      “Paying Agent” means any Person
(which may include the Company) authorized by the Company to pay the principal
of (and premium, if any) or interest, if any on any Subordinated Debt Securities
on behalf of the Company.

      

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

       

       

      
        
          
          

        

        
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      “Place of Payment”, when used
with respect to the Subordinated Debt Securities of any series, means the place
or places where the principal of (and premium, if any) and interest, if any, on
the Subordinated Debt Securities of that series are payable as specified
pursuant to Section 3.01 or, if not so specified, as specified in Section
10.02.

      

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

      

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

      

      “Redemption Price”, when used
with respect to any Subordinated Debt Security to be redeemed, means the price
at which it is to be redeemed pursuant to this Subordinated Debt Securities
Indenture.

      

      “Regular Record Date” for the
interest payable on any Interest Payment Date on registered Subordinated Debt
Securities of any series means the date specified for the purpose pursuant to
Section 3.01.

      

      “Responsible Officer”, when
used with respect to the Trustee, means any officer of the Trustee assigned to
or working in the corporate trust department of the Trustee or, with respect to
a particular corporate trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Subordinated Debt Securities Indenture.

      

      “Senior Creditors” means
creditors of the Company except creditors in respect of Subordinated
Indebtedness.

      

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

      

      “Subordinated
Debt Securities”, has the meaning set forth in the recitals of the
Company herein and more particularly means any series of Subordinated Debt
Securities issued, authenticated and delivered under this Subordinated Debt
Securities Indenture.

       

       

      
        
          
          

        

        
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      “Subordinated Debt Securities
Indenture” means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof and shall
include the terms and forms of particular series of Subordinated Debt Securities
established pursuant to Section 3.01.

      

      “Subordinated Debt Security”
means one of the Subordinated Debt Securities.

      

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

      

      “Subordinated Indebtedness”
means claims in respect of any liability of the Company however arising for the
payment of money, the right to payment of which by the Company by the terms
thereof that are or are expressed to be, subordinated (whether only in the event
of a winding-up of the Company or otherwise) to the claims of all or any of the
creditors of the Company.

      

      “Subsidiary” has the meaning
attributed thereto by Section 736 of the Companies Act 1985 of Great Britain as
in force at the date as of which this instrument was executed.

      

      “Taxing Jurisdiction” has the
meaning specified in Section 10.04.

      

      “Trustee” means the Person
named as the “Trustee”
in the first paragraph of this instrument until a successor trustee shall have
become such pursuant to the applicable provisions of this Subordinated Debt
Securities Indenture, and thereafter “Trustee” shall mean the Person
who is then the Trustee hereunder, and if at any time there is more than one
such Person, “Trustee”
shall mean and include each such Person; and “Trustee” as used with respect
to the Subordinated Debt Securities of any series shall mean the Trustee with
respect to the Subordinated Debt Securities of such series.

      

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

      

      “United Kingdom” means the
United Kingdom of Great Britain and Northern Ireland.

      

      “United States” and “U.S.” mean the United States
of America and, except in the case of Sections 6.09 and 6.14, its territories
and possessions.

       

       

      
        
          
          

        

        
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      “U.S. Government Obligations”
means noncallable (i) direct obligations of the United States for which its full
faith and credit are pledged and/or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States,
the payment of which is unconditionally guaranteed as a full faith and credit
obligation of the United States, and shall also include a depository receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933,
as amended) as custodian with respect to any such U.S. Government Obligation or
a specific payment of principal of or interest on any such U.S. Government
Obligation held by such custodian for the account of the holder of such
depository receipt, provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depository receipt from any amount received by the custodian in respect of
the U.S. Government Obligation or the specific payment of principal of or
interest on the U.S. Government Obligation evidenced by such depository
receipt.

      

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

      

      Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Subordinated Debt Securities Indenture shall
include:

      

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

      

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

      

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

      

      

      
        
          
          

        

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

      

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

      

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

      

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

      

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

       

       

      
        
          
          

        

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

      

      (c)     The
ownership of registered Subordinated Debt Securities shall be proved by the
Subordinated Debt Security Register.

      

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

      

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

      

      (a)     the
Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if made, given, furnished
or filed in writing (which may be via facsimile) to the Trustee at its Corporate
Trust Office, or

      

      (b)     the
Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed,
in the case of the Company, first-class postage prepaid, addressed to it at the
address of its principal office specified in the first paragraph of this
Subordinated Debt Securities Indenture (unless another address has been
previously furnished in writing to the Trustee by the Company, in which case at
the last such address) marked “Attention: Company Secretary”.

      

      Section
1.06. Notice to Holders;
Waiver. When this Subordinated Debt Securities Indenture provides for
notice to Holders of any event, such notice shall be sufficiently given (unless
otherwise herein expressly provided) if given in writing and mailed, first-class
postage prepaid, to each Holder of a registered

       

       

      
        
          
          

        

        
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      Subordinated
Debt Security affected by such event in the manner and to the extent provided in
Section 313(c) of the Trust Indenture Act with respect to reports pursuant to
Section 7.03(a).

      

      For so
long as the Subordinated Debt Securities of any series are represented by Global
Securities, the Company will deliver a copy of all notices with respect to such
series to the Holder (if the address of such Holder is known to the
Company).

      

      When
notice to Holders of registered Subordinated Debt Securities is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed,
to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. Where this Subordinated Debt Securities Indenture
provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver. In
case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.

      

      If the
Subordinated Debt Securities are listed on the Luxembourg Stock Exchange, all
notices to Holders, will be published in an Authorized Newspaper in
Luxembourg.

      

      Section
1.07. Conflict with Trust
Indenture Act. If any provision hereof limits, qualifies or conflicts
with another provision hereof which is required to be included in this
Subordinated Debt Securities Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control. If at any future time any
provision required to be included herein by the Trust Indenture Act as in force
at the date as of which this Subordinated Debt Securities Indenture was executed
or any limitation imposed by the Trust Indenture Act at such date on any
provision otherwise included herein would not be so required or imposed (in
whole or in part) if this Subordinated Debt Securities Indenture were executed
at such future time, the Company and the Trustee may enter into one or more
indentures supplemental hereto pursuant to Section 9.01 to change or eliminate
(in whole or in part) such provision or limitation of this Subordinated Debt
Securities Indenture in conformity with the requirements of the Trust Indenture
Act as then in force, except that (subject to Article 9) no provision or
limitation required to be included herein by Sections 310(a)(1) and (a)(2),
315(a), (c), (d)(l), (d)(2), (d)(3) and (e), 316(a)(1)(A), (a)(l)(B), (a)(2),
(a) (last sentence) and (b) of the Trust Indenture Act as in force at the date
as of which this Subordinated Debt Securities Indenture was executed may be so
changed or eliminated.

       

       

      
        
          
          

        

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

      

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

      

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

      

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

      

      Section
1.12. Governing Law.
This Subordinated Debt Securities Indenture and the Subordinated Debt Securities
shall be governed by and construed in accordance with the laws of the State of
New York, except as stated in Section 2.01 and except for Section 12.01, which
shall be governed by and construed in accordance with the laws of Scotland, and
except that the authorization and execution of this Subordinated Debt Securities
Indenture and the Subordinated Debt Securities shall be governed by (in addition
to the laws of the State of New York relevant to execution) the respective
jurisdictions of organization of the Company and the Trustee, as the case may
be.

      

      Section
1.13. Saturdays, Sundays and
Legal Holidays. The terms of the Subordinated Debt Securities shall
provide that, in any case where any Interest Payment Date, Redemption Date,
Exchange Date, Maturity or Stated Maturity, of a Subordinated Debt Security
shall not be a Business Day at any Place of Payment, then (notwithstanding any
other provision of this Subordinated Debt Securities Indenture or the
Subordinated Debt Securities other than a provision in the Subordinated Debt
Securities that specifically states that such provision shall apply in lieu of
this Section) payments of interest, if any (and premium, if any) or principal
and the exchange of the Subordinated Debt Security need not be made at such
Place of Payment on such date, but may be made on the next succeeding Business
Day at such Place of Payment (or such other Business Day as shall be provided in
such Subordinated Debt Security) with the same force and effect as if made on
such Interest Payment Date, Redemption Date, Exchange Date, Maturity or Stated
Maturity, provided that no interest shall accrue on such payment for
the

       

       

      
        
          
          

        

        
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      period
from and after such Interest Payment Date, Redemption Date, Exchange Date,
Maturity or Stated Maturity, as the case may be.

      

      Section
1.14. Appointment of Agent for
Service. The Company has designated and appointed John Fawcett, Chief
Financial Officer, Citizens Financial Group, Inc., 600 Washington Boulevard,
Stamford, Connecticut, 06901, as its authorized agent upon which process may be
served in any suit or proceeding in any Federal or State court in the Borough of
Manhattan, The City of New York arising out of or relating to the Subordinated
Debt Securities or this Subordinated Debt Securities Indenture, but for that
purpose only, and agrees that service of process upon said John Fawcett shall be
deemed in every respect effective service of process upon it in any such suit or
proceeding in any Federal or State court in the Borough of Manhattan, The City
of New York, New York. Such appointment shall be irrevocable so long as any of
the Subordinated Debt Securities remain Outstanding until the appointment of a
successor by the Company and such successor’s acceptance of such appointment.
Upon such acceptance, the Company shall notify the Trustee of the name and
address of such successor. The Company further agrees to take any and all
action, including the execution and filing of any and all such documents and
instruments, as may be necessary to continue such designation and appointment of
said John Fawcett in full force and effect so long as any of the Subordinated
Debt Securities shall be Outstanding. The Trustee shall not be obligated and
shall have no responsibility with respect to any failure by the Company to take
any such action. The Company hereby submits (for the purposes of any such suit
or proceeding) to the jurisdiction of any such court in which any such suit or
proceeding is so instituted, and waives, to the extent it may effectively do so,
any objection it may have now or hereafter to the laying of the venue of any
such suit or proceeding.

      

      Section
1.15. Calculation
Agent. If the Company appoints a Calculation Agent pursuant to Section
3.01 with respect to any series of Subordinated Debt Securities, any
determination of the interest rate on, or other amounts in relation to, such
series of Subordinated Debt Securities in accordance with the terms of such
series of Subordinated Debt Securities by such Calculation Agent shall (in the
absence of manifest error, bad faith or willful misconduct) be binding on the
Company, the Trustee and all Holders and (in the absence of manifest error, bad
faith or willful misconduct) no liability to the Holders shall attach to the
Calculation Agent in connection with the exercise or non-exercise by it of its
powers, duties and discretions.

      

      

      ARTICLE
2

      SUBORDINATED DEBT SECURITY FORMS

      

      Section
2.01. Forms Generally.
The Subordinated Debt Securities of each series shall be issuable as registered
securities without coupons and in such

       

       

      
        
          
          

        

        
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      forms as
shall be established by or pursuant to action of the Company’s Board of
Directors, or in one or more indentures supplemental hereto, pursuant to Section
3.01, in each case with such insertions, omissions, substitutions and other
variations as are required or permitted by this Subordinated Debt Securities
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with any applicable law or rule or regulation made pursuant thereto or with the
rules of any securities exchange or Depositary therefor, or as may, consistently
herewith, be determined by the officers executing such Subordinated Debt
Securities, all as evidenced by any such execution; provided, however, that such
Subordinated Debt Securities shall have endorsed thereon a statement in the
following form or in substantially the following form:

      

      “The
rights of the holder of the Subordinated Debt Security are, to the extent and in
the manner set forth in Section 12.01 of the Subordinated Debt Securities
Indenture, subordinated to the claims of other creditors of the Company, and
this Subordinated Debt Security is issued subject to the provisions of that
Section 12.01, and the holder of this Subordinated Debt Security, by accepting
the same, agrees to and shall be bound by such provisions. The provisions of
Section 12.01 of the Subordinated Debt Securities Indenture and the terms of
this paragraph are governed by, and shall be construed in accordance with, the
laws of Scotland.”

      

      The
Trustee’s certificates of authentication shall be in substantially the form set
forth in Section 2.02 or Section 6.14.

      

      The
definitive Subordinated Debt Securities shall be printed, lithographed or
engraved or produced by any combination of these methods or may be produced in
any other manner permitted by the rules of any securities exchange on which the
Subordinated Debt Securities may be listed, all as determined by the officers
executing such Subordinated Debt Securities, as evidenced by their execution
thereof.

      

      Section
2.02. Form of Trustee’s
Certificate of Authentication. The Trustee’s certificate of
authentication shall be in substantially the following form:

      

      CERTIFICATE
OF AUTHENTICATION

      

      This is
one of the Subordinated Debt Securities of the series designated herein referred
to in the within-mentioned Subordinated Debt Securities Indenture.

      

       

      
        
          
          

        

        
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                  Dated:

                	
                   

                	 
      
	 
      	 
      	 
      
	
                  THE
      BANK OF NEW YORK MELLON, 

                  LONDON
      BRANCH

                	 
      
	
                  as
      Trustee

                	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  By:

                	 
      	 
      
	 
      	
                  Authorized
      Signatory

                	 
      
	 
      	 
      	 
      

        

      

      ARTICLE
3

      THE SUBORDINATED DEBT SECURITIES

      

      Section
3.01. Amount Unlimited,
Issuable in Series. The aggregate principal amount of Subordinated Debt
Securities which may be authenticated and delivered under this Subordinated Debt
Securities Indenture is unlimited. The Subordinated Debt Securities may be
issued in one or more series.

      

      There
shall be established by or pursuant to action of the Board of Directors of the
Company or established in one or more indentures supplemental hereto, prior to
the initial issuance of Subordinated Debt Securities of any series,

      

      (a)     the title
of the Subordinated Debt Securities of the series (which shall distinguish the
Subordinated Debt Securities of the series from all other Subordinated Debt
Securities);

      

      (b)     any limit
upon the aggregate principal amount of the Subordinated Debt Securities of the
series which may be authenticated and delivered under this Subordinated Debt
Securities Indenture (except for Subordinated Debt Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Subordinated Debt Securities of the series pursuant to Section 3.04, 3.05,
3.06, 9.06 or 11.07 and except for any Subordinated Debt Securities which,
pursuant to Section 3.03 are deemed never to have been authenticated and
delivered hereunder);

      

      (c)     the date
or dates, if any, on which the principal of (and premium, if any, on) the
Subordinated Debt Securities of the series is payable;

      

      (d)     the rate
or rates, if any, at which the Subordinated Debt Securities of the series shall
accrue interest or the manner of calculation of such rate or rates, if any, the
date or dates from which such interest shall accrue, the Interest Payment Dates
on which such interest shall be payable or the manner of determination of such
Interest Payment Dates, if other than as specified in Section 3.07(a), the
Deferred Payment Date(s) or other terms applicable to deferred payments and, in
the case of registered Subordinated Debt Securities, the Regular Record Date for
the interest payable on any Interest Payment Date, the Deferred Record Date
for

       

       

      
        
          
          

        

        
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      the
interest payable on any Deferred Payment Date and any dates required to be
established pursuant to Section 7.01;

      

      (e)     whether
any premium, upon redemption or otherwise, shall be payable by the Company on
Subordinated Debt Securities of the series;

      

      (f)     the place
or places where the principal of (and premium, if any) and any interest on
Subordinated Debt Securities of the series shall be payable, and the Paying
Agent or Paying Agents who shall be authorized to pay principal of (and premium,
if any) and interest on Subordinated Debt Securities of such series, at least
one of such Paying Agents having offices or agencies in the Borough of
Manhattan, The City of New York and if the Subordinated Debt Securities are
listed on the Luxembourg Stock Exchange, in Luxembourg;

      

      (g)     other
than with respect to any redemption of the Subordinated Debt Securities pursuant
to Section 11.08, whether or not such series of Subordinated Debt Securities are
to be redeemable, in whole or in part, at the Company’s option and, if so
redeemable, the period or periods within which, the price or prices at which and
the terms and conditions upon which, Subordinated Debt Securities of the series
may be redeemed, including the date referred to in Section 11.08;

      

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

      

      (i)
     if other
than denominations of $25 and any multiple thereof, the denominations in which
Subordinated Debt Securities of the series in each applicable form shall be
issuable;

      

      (j)
     if other
than the principal amount thereof, the portion, or the manner of calculation of
such portion, of the principal amount of Subordinated Debt Securities of the
series which shall be payable upon a declaration of acceleration or acceleration
of the Maturity thereof pursuant to Section 5.02, upon redemption of
Subordinated Debt Securities of any series which are redeemable before their
Stated Maturity, or which the Trustee shall be entitled to file and prove a
claim pursuant to Section 5.04;

      

      
        (k)     if
Additional Amounts, pursuant to Section 10.04, will not be payable;

      

      

      (l)     whether
the Subordinated Debt Securities of any series shall be exchangeable at the
option of the Company into Dollar Preference Shares or other

       

       

      
        
          
          

        

        
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      securities
of the Company (“Exchange
Securities”) pursuant to Article 13 and if so the terms of the Dollar
Preference Shares or the nature and terms of the Exchange Securities into which
such Subordinated Debt Securities are exchangeable and any additional or other
provisions relating to such exchange;

      

      (m)     if other
than Dollars, provisions, if any, for the Subordinated Debt Securities of the
series to be denominated, and payments thereon to be made, in Foreign Currencies
and specifying the manner and place of payment thereon and any other terms with
respect thereto;

      

      (n)     if other
than the coin or currency in which the Subordinated Debt Securities of that
series are denominated, the coin or currency in which payment of the principal
of (and premium, if any) or interest, if any, on the Subordinated Debt
Securities of such series shall be payable;

      

      (o)     if the
principal of (and premium, if any) or interest, if any, on the Subordinated Debt
Securities of such series are to be payable, at the election of the Company or a
Holder thereof, in a coin or currency other than that in which the Subordinated
Debt Securities are denominated, the period or periods within which, and the
terms and conditions upon which, such election may be made;

      

      (p)     whether
the Subordinated Debt Securities of the series shall be issued in whole or in
part in the form of one or more Global Securities and the initial Holder with
respect to such Global Security or Subordinated Debt Securities;

      

      (q)     if the
Subordinated Debt Securities of such series are to be issuable in definitive
form (whether upon original issue or upon exchange of a temporary Subordinated
Debt Security of such series or otherwise) only upon receipt of certain
certificates or other documents or satisfaction of other conditions, then the
form and terms of such certificates, documents or conditions;

      

      (r)
     if the
amounts of payments of principal of (and premium, if any) or interest, if any,
on the Subordinated Debt Securities of the series may be determined with
reference to an index or are otherwise not fixed on the original issue date
thereof, the manner in which such amounts shall be determined and the
Calculation Agent, if any, who shall be appointed and authorized to calculate
such amounts;

      

      (s)     any other
Events of Default, Defaults or covenants with respect to the Subordinated Debt
Securities of such series and if other than as specified in Section 5.03, the
terms of any Default;

      

      (t)     if other
than as provided in Section 12.01, the subordination terms with respect to the
Subordinated Debt Securities of the series;

       

       

      
        
          
          

        

        
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        (u)
     the forms
of Subordinated Debt Securities of the series; and

      

      

      (v)    any other
terms of the series (which terms shall not be inconsistent with the provisions
of this Subordinated Debt Securities Indenture, except as permitted by Section
9.01(d)).

      

      All
Subordinated Debt Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to such action or in any such indenture supplemental hereto.

      

      If the
forms of Subordinated Debt Securities of any series, or any of the terms
thereof, are established by action taken by the Board of Directors of the
Company, copies of the Board Resolutions in respect thereof shall be delivered
to the Trustee at or prior to the delivery of the Company Order pursuant to
Section 3.03 for the authentication and delivery of such Subordinated Debt
Securities.

      

      Section
3.02. Denominations.
The Subordinated Debt Securities of each series shall be issuable in such
denominations as shall be specified as contemplated by Section 3.01. In the
absence of any such specification with respect to Subordinated Debt Securities
of any series, the Subordinated Debt Securities of each series shall be issuable
in denominations of $25 each and any integral multiple thereof. Unless otherwise
specified in accordance with Section 3.01, any Global Security issued and
delivered to the Holder shall be issued in the form of units with each $25
principal amount of such Global Security constituting one unit.

      

      Section
3.03. Execution,
Authentication, Delivery and Dating. The Subordinated Debt Securities
shall be executed on behalf of the Company by any two Directors or by one
Director and a Deputy Secretary to the Company. The signature of any of these
officers on the Subordinated Debt Securities may be manual or facsimile.
Subordinated Debt Securities bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Subordinated
Debt Securities.

      

      At any
time and from time to time after the execution and delivery of this Subordinated
Debt Securities Indenture, the Company may deliver Subordinated Debt Securities
of any series executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such
Subordinated Debt Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Subordinated Debt Securities. In
authenticating such Subordinated Debt Securities and accepting the additional
responsibilities under this Subordinated Debt Securities Indenture in relation
to such Subordinated Debt Securities the Trustee shall be entitled to receive,
and

       

       

      
        
          
          

        

        
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      (subject
to Section 6.01) shall be fully protected in relying upon, an Opinion of Counsel
stating that the form and terms thereof have been established in conformity with
the provisions of this Subordinated Debt Securities Indenture.

      

      The
Trustee shall not be required to authenticate such Subordinated Debt Securities
if the issue of such Subordinated Debt Securities pursuant to this Subordinated
Debt Securities Indenture will affect the Trustee’s own rights, duties or
immunities under the Subordinated Debt Securities and this Subordinated Debt
Securities Indenture or otherwise in a manner which is not reasonably acceptable
to the Trustee.

      

      Each
registered Subordinated Debt Security shall be dated the date of its
authentication.

      

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

      

      Section
3.04. Temporary Subordinated
Debt Securities. Pending the preparation of definitive Subordinated Debt
Securities of any series, the Company may execute, and upon Company Order the
Trustee shall authenticate and deliver, temporary Subordinated Debt Securities
substantially of the tenor of the definitive Subordinated Debt Securities in
lieu of which they are issued, which Subordinated Debt Securities may be
printed, lithographed, typewritten, photocopied or otherwise produced. Temporary
Subordinated Debt Securities shall be issuable as registered Subordinated Debt
Securities without coupons attached in any authorized denomination, and with
such appropriate insertions, omissions, substitutions and other variations as
the officers executing such Subordinated Debt Securities may determine, all as
evidenced by such execution.

      

       

       

      
        
          
          

        

        
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        If
temporary Subordinated Debt Securities of any series are issued, the Company
will cause, if so required by the terms of such temporary Subordinated
Debt
Securities, definitive Subordinated Debt Securities of such series to be
prepared without unreasonable delay. After the preparation of definitive
Subordinated Debt Securities of such series, the temporary Subordinated Debt
Securities of such series shall be exchangeable for definitive Subordinated Debt
Securities of such series containing identical terms and provisions upon
surrender of the temporary Subordinated Debt Securities of such series at the
office or agency of the Company in a Place of Payment for that series, without
charge to the Holder. Upon surrender for cancellation of any one or more
temporary Subordinated Debt Securities of any series the Company shall execute,
and the Trustee shall authenticate and deliver in exchange therefor, a like
aggregate principal amount of definitive Subordinated Debt Securities of the
same series of authorized denominations containing identical terms and
provisions. Until so exchanged, unless otherwise provided therein or in a
supplemental indenture relating thereto, the temporary Subordinated Debt
Securities of any series shall in all respects be entitled to the same benefits
(but shall be subject to all the limitations of rights) under this Subordinated
Debt Securities Indenture as definitive Subordinated Debt Securities of such
series.

      

      

      Section
3.05.  Registration,
Registration of Transfer and Exchange.  (a)  Global Securities. This
Section 3.05(a) shall apply to Global Securities unless otherwise specified, as
contemplated by Section 3.01.

      

      Except as
otherwise specified as contemplated by Section 3.01 hereof, the Subordinated
Debt Securities shall be initially issued and represented by one or more Global
Securities in registered form, without Coupons attached thereto, which shall be
authenticated as contemplated by this Indenture.

      

      Each
Global Security in registered form authenticated under this Subordinated Debt
Securities Indenture shall be registered in the name of the Depositary
designated for such Global Security or a nominee thereof and delivered to such
Depositary or a nominee thereof or custodian therefor, and each such Global
Security shall constitute a single Subordinated Debt Security for all purposes
of this Subordinated Debt Securities Indenture. Except as otherwise specified as
contemplated by Section 3.01 hereof, each Global Security in registered form
authenticated under this Indentures shall be initially registered in the name of
DTC only.

      

      With
respect to Global Securities in registered form, unless the Global Security is
presented by an authorized representative of the Holder to the Company or its
agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of a nominee of the Holder and any payment is
made to such nominee, any transfer, pledge or other use of the Global Security
in registered form for value or otherwise shall be wrongful since the registered
owner of such Global Security, the nominee of the Holder, has an interest in
such Global Security.

       

       

      
        
          
          

        

        
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      Except as
otherwise specified as contemplated by Section 3.01 hereof, any Global Security
shall be exchangeable for definitive Subordinated Debt Securities only as
provided in this paragraph. A Global Security shall be exchangeable pursuant to
this Section only (i) if the relevant Depositary notifies the Trustee that it is
unwilling or unable to continue to act as Depositary and a successor depositary
is not appointed by the Trustee within 120 days of such notification, (ii) if,
in the event of a winding-up of the Company, the Company fails to make a payment
on the Subordinated Debt Securities when due, or (iii) at any time if the
Company at its option and in its sole discretion determines that the Global
Securities of a particular series should be exchanged for definitive
Subordinated Debt Securities of that series in registered form. Any Global
Security that is exchangeable pursuant to the preceding sentence shall be
exchangeable for, unless otherwise specified or contemplated by Section 3.01,
definitive Subordinated Debt Securities in registered form bearing interest (if
any) at the same rate or pursuant to the same formula, having the same date of
issuance, the same date or dates from which such interest shall accrue, the same
Interest Payment Dates on which such interest shall be payable or the manner of
determination of such Interest Payment Dates, redemption provisions, if any,
specified currency and other terms and of differing denominations aggregating a
like amount as the Global Security so exchangeable. Definitive Subordinated Debt
Securities in registered form shall be registered in the names of the owners of
the beneficial interests in such Global Securities as such names are from time
to time provided by the Holder to the Trustee.

       

      Any
Global Security that is exchangeable pursuant to the preceding paragraph, unless
otherwise specified as contemplated by Section 3.01, shall be exchangeable for
Subordinated Debt Securities issuable in authorized denominations of a like
aggregate principal amount and tenor.

      

      No Global
Security in registered form may be transferred except as a whole by the Holder
to a nominee of the Holder or by the Holder or any such nominee to a successor
of the Holder or a nominee of such successor. Except as provided above, owners
solely of beneficial interests in a Global Security shall not be entitled to
receive physical delivery of Subordinated Debt Securities in definitive form and
will not be considered the holders thereof for any purpose under this
Subordinated Debt Securities Indenture.

      

      In the
event that a Global Security is surrendered for redemption or exchange for
Dollar Preference Shares or Exchange Securities in part pursuant to Section
11.07 or Section 13.05, the Company shall execute, and the Trustee shall
authenticate and deliver to the Holder of such Global Security, without service
charge, a new Global Security in a denomination equal to and in exchange for the
unredeemed or unexchanged portion of the principal of the Global Security so
surrendered.

       

       

      
        
          
          

        

        
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      The Agent
Members and any other beneficial owners shall have no rights under this
Subordinated Debt Securities Indenture with respect to any Global Security held
on their behalf by a Holder, and such Holder may be treated by the Company, the
Trustee, and any agent of the Company or the Trustee as the owner of such Global
Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Trustee, or any agent of the Company or
the Trustee, from giving effect to any written certification, proxy or other
authorization furnished by a Holder or impair, as between any such Holder or
other clearance service and its Agent Members and Holders, the operation of
customary practices governing the exercise of the rights of a holder of any
security, including without limitation the granting of proxies or other
authorization of participants to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action which a Holder
is entitled to give or take under this Subordinated Debt Securities
Indenture.

      

      In
connection with any exchange of interests in a Global Security for definitive
Subordinated Debt Securities of another authorized form, as provided in this
subsection 3.05(a), then without unnecessary delay but in any event not later
than the earliest date on which such interests may be so exchanged, the Company
shall deliver to the Trustee definitive Subordinated Debt Securities in
aggregate principal amount equal to the principal amount of such Global Security
or the portion to be exchanged executed by the Company. On or after the earliest
date on which such interests may be so exchanged, such Global Security shall be
surrendered by the Holder to the Trustee, as the Company’s agent for such
purpose, to be exchanged, in whole or from time to time in part, for definitive
Subordinated Debt Securities without charge (unless the definitive Subordinated
Debt Securities in registered form are to be issued to an Excepted Person (as
defined in Section 13.10) in which case the Company or Trustee may require
payment of any taxes or governmental charges arising) and the Trustee shall
authenticate and deliver, in exchange for each portion of such Global Security,
an equal aggregate principal amount of definitive Subordinated Debt Securities
of authorized denominations as the portion of such Global Security to be
exchanged. Any Global Security that is exchangeable pursuant to this Section
3.05 shall be exchangeable for Subordinated Debt Securities issuable in the
denominations specified as contemplated by Section 3.01 and registered in such
names as the Holder of such Global Security shall direct. If a definitive
Subordinated Debt Security in registered form is issued in exchange for any
portion of a Global Security after the close of business at the office or agency
where such exchange occurs on any record date and before the opening of business
at such office or agency on the relevant Interest Payment Date, interest will
not be payable on such Interest Payment Date in respect of such definitive
Subordinated Debt Security, but will be payable on such Interest Payment Date
only to the person to whom payments of interest in respect of such portion of
such Global Security are payable.

       

       

      
        
          
          

        

        
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      A
Depositary may grant proxies and otherwise authorize any person, including Agent
Members and persons that may hold interests through Agent Members, to take any
action which a holder is entitled to take under this Subordinated Debt
Securities Indenture with respect to the Subordinated Debt
Securities.

      

      (b)     Except as
otherwise specified pursuant to Section 3.01, registered Subordinated Debt
Securities of any series may only be exchanged for a like aggregate principal
amount of registered Subordinated Debt Securities of such series of other
authorized denominations containing identical terms and provisions. Subordinated
Debt Securities to be exchanged shall be surrendered at an office or agency of
the Company designated pursuant to Section 10.02 for such purpose, and the
Company shall execute, and the Trustee shall authenticate and deliver, in
exchange therefor the Subordinated Debt Security or Subordinated Debt Securities
of the same series which the Holder making the exchange shall be entitled to
receive.

      

      Except as
otherwise specified pursuant to Section 3.01, the Company shall cause to be kept
in the principal corporate trust office of the Trustee a register (the register
maintained in such office and in any other office or agency of the Company in a
Place of Payment being herein sometimes collectively referred to as the “Subordinated Debt Security
Register” provided, no such
Subordinated Debt Security Register shall be maintained in any office or agency
in the United Kingdom other than in Scotland) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of registered Subordinated Debt Securities and of transfers of such
Subordinated Debt Securities. The Trustee is hereby appointed “Subordinated Debt Security
Registrar” for the
purpose of registering Subordinated Debt Securities in registered form and
transfers of Subordinated Debt Securities in registered form as herein
provided.

      

      Registered
Subordinated Debt Securities shall be transferable only on the Subordinated Debt
Security Register. Upon surrender for registration of transfer of any registered
Subordinated Debt Security of any series, together with the form of transfer
endorsed on it, duly completed and executed at an office or agency of the
Company designated pursuant to Section 10.02 for such purpose, the Company shall
execute, and the Trustee shall authenticate and deliver to the address specified
in the form of transfer, within three Business Days, in the name of the
designated transferee or transferees, one or more new registered Subordinated
Debt Securities of the same series of any authorized denominations containing
identical terms and provisions, of a like aggregate principal amount. If only
part of a registered Subordinated Debt Security is transferred, a new registered
Subordinated Debt Security of an aggregate principal amount equal to the amount
not being transferred shall be executed by the Company, and authenticated and
delivered by the Trustee to the transferor, in the name of the

       

       

      
        
          
          

        

        
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      transferor,
within three Business Days after the Trustee acting as Paying Agent pursuant to
Section 10.02 received the registered Subordinated Debt Security. The new
registered Subordinated Debt Security will be delivered to the transferor by
uninsured post at the risk of the transferor to the address of the transferor
appearing in the Subordinated Debt Security Register.

      

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

      

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

      

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

      

      The
Company shall not be required (i) to issue, register the transfer of or exchange
any Subordinated Debt Security of any series during a period beginning at the
opening of business 15 days before the day of the giving of a notice of
redemption of Subordinated Debt Securities of such series selected for
redemption under Section 11.03 and ending at the close of business on the day of
the giving of such notice, or (ii) to register the transfer of or exchange any
Subordinated Debt Security so selected for redemption in whole or in part,
except the unredeemed portion of any Subordinated Debt Securities being redeemed
in part.

      

      Section
3.06. Mutilated, Destroyed,
Lost and Stolen Subordinated Debt Securities. If any mutilated
Subordinated Debt Security (including any Global Security) is
surrendered to the Trustee, the Company may execute and the Trustee shall, in
the case of a Subordinated Debt Security, authenticate and deliver in exchange
therefor a new Subordinated Debt Security of the same series containing
identical terms and provisions and of like amount, and bearing a number not
contemporaneously outstanding.

      

       

       

      
        
          
          

        

        
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        If there
shall be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Subordinated Debt
Security
(including any Global Security) and (ii) such security or indemnity as may be
required by them to save each of them and any agent of any of them harmless,
then, in the absence of notice to the Company or the Trustee that such
Subordinated Debt Security has been acquired by a bona fide purchaser, the
Company shall execute and upon its request the Trustee shall authenticate and
deliver in lieu of any such destroyed, lost or stolen Subordinated Debt Security
a new Subordinated Debt Security of the same series containing identical terms
and provisions and of like amount, and bearing a number not contemporaneously
outstanding.

      

      

      In case
any such mutilated, destroyed, lost or stolen Subordinated Debt Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Subordinated Debt Security, pay such Subordinated Debt
Security.

      

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

      

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

      

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

      

      Section
3.07. Payment; Interest Rights
Preserved. (a) Except as otherwise provided as contemplated by Section
3.01 with respect to any series of Subordinated Debt Securities, if the Company
does not make a payment of principal of (and premium, if any, on) or interest,
if any, with respect to any series of Subordinated Debt Securities on the
original due date for payment, the obligation to make such payment shall be
deferred until (i) in the case of a payment of interest, the date upon which a
dividend is paid on any class of the Company’s share capital and (ii) in the
case of a payment of principal, the first Business Day after the date that falls
six months after the original due date for payment (a “Deferred Payment Date”).
Failure by the Company to make any such payment prior to such Deferred Payment
Date shall not constitute a Default by the Company or otherwise allow any Holder
to sue the Company for such

       

       

      
        
          
          

        

        
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      payment
or take any other action. Each payment so deferred will accrue interest at the
rate prevailing immediately before the original due date with respect to such
payment. Any amount the due date of which is deferred pursuant to the above
shall not be treated as due for any purpose (including, without limitation, for
the purposes of ascertaining whether or not a Default has occurred) until the
Deferred Payment Date.

      

      (b)     Except as
otherwise provided as contemplated by Section 3.01 with respect to any series of
Subordinated Debt Securities, interest, if any, on any Subordinated Debt
Securities which is payable, and is paid or duly provided for, on any Interest
Payment Date shall be paid, in the case of registered Subordinated Debt
Securities, to the Person in whose name that Subordinated Debt Security (or one
or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest or, in the case of Global Securities held
by any Holder, to the Holder including through a Paying Agent of the Company
designated pursuant to Section 3.01 outside the United Kingdom for collection by
the Holder.

      

      In the
case of registered Subordinated Debt Securities where payment is to be made in
Dollars, payment at any Paying Agent’s office outside The City of New York will
be made in Dollars by check drawn on, or, at the request of the Holder, by
transfer to a Dollar account maintained by the payee with, a bank in The City of
New York.

      

      In the
case of registered Subordinated Debt Securities where payment is to be made in a
Foreign Currency, payment will be made as established pursuant to Section
3.01.

      

      Any
interest on any Subordinated Debt Security of any series which is payable, but
is not punctually paid or duly provided for, on any Interest Payment Date is
herein called “Deferred
Interest”. Deferred Interest on any registered Subordinated Debt Security
of any series shall forthwith cease to be payable to the Holder on the relevant
Regular Record Date by virtue then of having been such Holder, and such Deferred
Interest may be paid, in the case of registered Subordinated Debt Securities, to
the Person in whose name that Subordinated Debt Security (or one or more
Predecessor Subordinated Debt Securities) is registered at the close of business
on the Deferred Record Date for such interest or may be paid by the Company, at
its election, to the person who is the Holder on the record date established by
the Company for such purpose.

      

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

       

       

      
        
          
          

        

        
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      Section
3.08. Persons Deemed
Owners. Prior to due presentment of a registered Subordinated Debt
Security for registration of transfer, the Company, the Trustee and any agent of
the Company or the Trustee may treat the Person in whose name such Subordinated
Debt Security is registered as the owner of such Subordinated Debt Security for
the purpose of receiving payment of principal of (and premium, if any) and
(subject to Section 3.07) interest, if any, on such Subordinated Debt Security
and for all other purposes whatsoever, whether or not such Subordinated Debt
Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.

      

      Section
3.09. Cancellation. All
Subordinated Debt Securities surrendered for payment, redemption, registration
of transfer or exchange shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The
Company may at any time deliver to the Trustee for cancellation any Subordinated
Debt Securities previously authenticated and delivered hereunder and all
Subordinated Debt Securities so delivered shall be promptly cancelled by the
Trustee. No Subordinated Debt Securities shall be authenticated in lieu of or in
exchange for any Subordinated Debt Securities cancelled as provided in this
Section, except as expressly permitted by the provisions of the Subordinated
Debt Securities of any series or pursuant to the provisions of this Subordinated
Debt Securities Indenture. The Trustee shall deliver to the Company all
cancelled Subordinated Debt Securities held by the Trustee.

      

      Section
3.10. Computation of
Interest. Except as otherwise specified pursuant to Section 3.01 for
Subordinated Debt Securities of any series, payments of interest on the
Subordinated Debt Securities of each series shall be computed on the basis of a
360-day year of twelve 30-day months.

      

      Section
3.11. Cusip Numbers.
The Company in issuing any series of the Subordinated Debt Securities may use
CUSIP, “ISIN” and/or “Common Code” numbers (if then generally in use) or any
successor to such numbers and thereafter with respect to such series, the
Trustee shall use “CUSIP”, “ISIN” and/or “Common Code” numbers or successor
numbers in notices of redemption as a convenience to Holders; provided that any
such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Subordinated Debt Securities or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Subordinated Debt Securities,
and any such redemption shall not be affected by any defect in or omission of
such numbers. The Company will promptly notify the Trustee of any change in the
“CUSIP”, “ISIN” and/or “Common Code” numbers or successor numbers.

       

       

      
        
          
          

        

        
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      ARTICLE
4

      SATISFACTION AND DISCHARGE

      

      Section
4.01. Satisfaction and
Discharge of Subordinated Debt Securities Indenture. This Subordinated
Debt Securities Indenture shall upon Company Request cease to be of
further effect with respect to Subordinated Debt Securities of any series
(except as to any surviving rights of registration of transfer or exchange of
Subordinated Debt Securities of such series herein expressly provided for), and
the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Subordinated Debt Securities
Indenture with respect to the Subordinated Debt Securities of such series
when

      

      
        	
              	
                (a)  

              	
                either

              

      

      

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

      

      (ii)    all such
Subordinated Debt Securities not theretofore delivered to the Trustee for
cancellation

      

      (A)     have
become due and payable or will become due and payable at their Stated Maturity
within one year, or

      

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

      

      (C)     are to be
exchanged for Dollar Preference Shares or Exchange Securities and notice of
exchange of such Subordinated Debt Securities for Dollar Preference Shares or
Exchange Securities pursuant to Article 13 shall have been given,

      

      and the
Company has deposited or caused to be deposited with the Trustee, as trust funds
in trust for the purpose, an amount in cash, or U.S. Government Obligations
(with respect to Subordinated Debt Securities denominated in Dollars) or Foreign
Government Securities (with respect to Subordinated Debt Securities denominated
in the same Foreign

       

       

      
        
          
          

        

        
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      Currency)
maturing, in the case of (A) and (B) above, as to principal and interest, if
any, and, in the case of (C) above, as to accrued interest, if any, in such
amounts and at such times as will ensure the availability of cash sufficient to
pay and discharge all claims with respect to such Subordinated Debt Securities
not theretofore delivered to the Trustee for cancellation, in the case of (A)
and (B) above, for principal (and premium, if any) and accrued interest, if any,
and, in the case of (iii) above, as to accrued interest, if any, to the date of
such deposit (in the case of Subordinated Debt Securities which have become due
and payable) or to the Redemption Date or the Exchange Date, as the case may
be;

      

      (b)     the
Company has paid or caused to be paid all other sums payable hereunder by the
Company with respect to the Subordinated Debt Securities of such series;
and

      

      (c)     the
Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating
to the satisfaction and discharge of this Subordinated Debt Securities Indenture
with respect to the Subordinated Debt Securities of such series have been
complied with.

      

      Notwithstanding
any satisfaction and discharge of this Subordinated Debt Securities Indenture,
the obligations of the Company to the Trustee under Section 6.07, the
obligations of the Trustee to any Authenticating Agent under Section 6.14 and,
if cash, U.S. Government Obligations and/or Foreign Government Securities shall
have been deposited with the Trustee pursuant to subclause 4.01(a)(ii) of clause
4.01(a) of this Section, the obligations of the Trustee under Section 4.02 and
the last paragraph of Section 10.03 shall survive such satisfaction and
discharge.

      

      Section
4.02. Application of Trust
Money. Subject to the provisions of the last paragraph of Section 10.03,
all cash, U.S. Government Obligations and Foreign Government Securities
deposited with the Trustee pursuant to Section 4.01 shall be held in trust and
such cash and the proceeds from such U.S. Government Obligations and/or Foreign
Government Securities shall be applied by it, in accordance with the provisions
of the Subordinated Debt Securities of such series, and this Subordinated Debt
Securities Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for the payment of which such cash, U.S. Government
Obligations and/or Foreign Government Securities have been deposited with the
Trustee.

      

      Section
4.03. Repayment to
Company. The Trustee, the Calculation Agent and any Paying Agent promptly
shall pay to the Company upon Company

       

       

      
        
          
          

        

        
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      Request
any excess money, U.S. Government Obligations and/or Foreign Government
Securities held by them at any time with respect to any series of Subordinated
Debt Securities.

      

      

      ARTICLE
5

      REMEDIES

      

      Section
5.01. Events of
Default. “Event of
Default”, wherever used herein with respect to Subordinated Debt
Securities of a particular series, means (a) the making of an order by a court
of competent jurisdiction which is not successfully appealed within 30 days of
the making of such order, or valid adoption by the shareholders of the Company
of an effective resolution, for the winding-up of the Company (other than under
or in connection with a scheme of amalgamation or reconstruction not involving
bankruptcy or insolvency) or (b) any other Event of Default provided with
respect to Subordinated Debt Securities of such series pursuant to Section
3.01.

      

      Section
5.02. Acceleration of
Maturity; Rescission and Annulment. If an Event of Default occurs with
respect to Subordinated Debt Securities of any series and is continuing, then in
every such case the Trustee or the Holder or Holders of not less than 25% in
aggregate principal amount of the Outstanding Subordinated Debt Securities of
such series may declare the principal amount (or, in the case of Discount
Securities, the accreted face amount together with accrued interest, if any, on)
of all the Subordinated Debt Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by the Holder or Holders), and upon any such declaration such principal amount
(or specified amount) shall become immediately due and payable.

      

      At any
time after such a declaration of acceleration with respect to Subordinated Debt
Securities of any series has been made but before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holder or Holders of a majority in aggregate principal
amount of the Outstanding Subordinated Debt Securities of such series, by
written notice to the Company and the Trustee, may rescind or annul such
declaration of acceleration and its consequences (including any Event of Default
under another series of Subordinated Debt Securities arising therefrom) but only
if

      

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

      

      (i)     the principal
of (and premium, if any, on) any Subordinated Debt Securities of such series
which have become due otherwise than by such declaration of acceleration and any
due and payable interest, and

       

       

      
        
          
          

        

        
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      overdue
interest, if any, thereon at the rate or rates prescribed therefor in such
Subordinated Debt Securities,

      

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

      

      (b)     all Events of
Default with respect to Subordinated Debt Securities of such series have been
cured or waived as provided by Section 5.13.

      

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

      

      Section
5.03. Defaults; Collection of
Indebtedness and Suits for Enforcement by Trustee.
Except as otherwise provided as contemplated by Section 3.01 with
respect to any series of Subordinated Debt Securities, “Default” wherever used herein
with respect to Subordinated Debt Securities of a particular series, means any
one of the following events (whatever the reason for such Default and whether it
shall be voluntary or involuntary or be effected by operation of law pursuant to
any judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):

      

      (a)     the
Company fails to pay any installment of interest on any Subordinated Debt
Security of such series on or before its Deferred Payment Date and such failure
continues for 14 days; or

      

      (b)     the
Company fails to pay all or any part of the principal of (and premium, if any,
on) any Subordinated Debt Security of such series on its Deferred Payment Date,
or when such principal shall otherwise become due and payable, whether upon
redemption or otherwise, and such failure continues for seven days;

      

      If a
Default occurs and is continuing, the Trustee may commence a proceeding in
Scotland (but not elsewhere) for the winding-up of the Company, provided that
the Trustee may not, upon the occurrence of a Default, declare the principal
amount of any of the Outstanding Subordinated Debt Securities to be due and
payable.

      

      The
Trustee and Holders of Subordinated Debt Securities by their acceptance thereof
will be deemed to have waived any right of set-off or counterclaim or
combination of accounts with respect to the Subordinated Debt Securities or this
Subordinated Debt Securities Indenture (or between the obligations under or in
respect of any Subordinated Debt Securities and any liability owed by a Holder
or the Trustee to the Company) that they might otherwise have against the
Company, whether before or during a winding up of the Company.

       

       

      
        
          
          

        

        
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      Notwithstanding
the foregoing, failure to make any payment in respect of a series of
Subordinated Debt Securities shall not be a Default in respect of such
Subordinated Debt Securities if such payment is withheld or refused (i) in order
to comply with any fiscal or other law or regulation or with the order of any
court of competent jurisdiction, in each case applicable to such payment, or
(ii) in case of doubt as to the validity or applicability of any such law,
regulation or order, in accordance with advice given as to such validity or
applicability at any time before the expiry of such period of 14 days (in the
case of payments under clause 5.03(a) above) or seven days (in the case of
payments under clause 5.03(b) above) by independent legal advisers acceptable to
the Trustee, provided, however, that the Trustee may by notice to the Company
require the Company to take such action (including but not limited to
proceedings for a declaration by a court of competent jurisdiction) as the
Trustee may be advised in an Opinion of Counsel, upon which opinion the Trustee
may conclusively rely, is appropriate and reasonable in the circumstances to
resolve such doubt, in which case the Company shall forthwith take and
expeditiously proceed with such action and shall be bound by any final
resolution of the doubt resulting therefrom. If any such action results in a
determination that the relevant payment can be made without violating any
applicable law, regulation or order then the provisions of the preceding
sentence shall cease to have effect and the payment shall become due and payable
on the expiration of 14 days (in the case of payments under clause 5.03(a)
above) or seven days (in the case of payments under clause 5.03(b) above) after
the Trustee gives written notice to the Company informing it of such
resolution.

      

      No
recourse for the payment of the principal of (or premium, if any) or interest,
if any, on any Subordinated Debt Security, or for any claim based thereon or
otherwise in respect thereof and no recourse under or upon any obligation,
covenant or agreement of the Company in this Subordinated Debt Securities
Indenture, or in any Subordinated Debt Security, or because of the creation of
any indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, past, present or future, of the Company or of
any successor corporation of the Company, either directly or through the Company
or any successor corporation, whether by virtue of any constitution, statute or
rule of law, or by the enforcement of any assessment or penalty or otherwise; it
being expressly understood that to the extent lawful all such liability is
hereby expressly waived and released as a condition of, and as a consideration
for, the execution of this Subordinated Debt Securities Indenture and the issue
of the Subordinated Debt Securities.

      

      Section
5.04. Trustee May File Proofs
of Claim. In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, 

       

       

      
        
          
          

        

        
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      reorganization,
arrangement, adjustment, composition, winding-up or other judicial proceeding
relative to the Company or any other obligor upon the Subordinated Debt
Securities of any series or to the property of the Company or such other obligor
or their creditors (other than under or in connection with a scheme of
amalgamation or reconstruction not involving bankruptcy or insolvency), the
Trustee (irrespective of whether the principal of the Subordinated Debt
Securities of such series shall then be due and payable as therein expressed or
by declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue principal (and
premium, if any) or interest, if any) shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions
authorized under the Trust Indenture Act in order to have claims of the Holders
and the Trustee allowed in any such proceeding. In particular, the Trustee shall
be authorized to collect and receive any moneys and other property payable or
deliverable on any such claims and to distribute the same; and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder of a
Subordinated Debt Security to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to
such Holders or holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due to the Trustee under Section
6.07.

      

      Subject
to Article 8 and Section 9.02, nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf of
any Holder of any Subordinated Debt Security any plan of reorganization,
arrangement, adjustment, or composition affecting any Subordinated Debt
Securities or the rights of any Holder of any Subordinated Debt Security or to
authorize the Trustee to vote in respect of the claim of any such Holder or
holder in any such proceeding.

      

      The
provisions of this Section 5.04 are subject to the provisions of Section
12.01.

      

      Section
5.05. Trustee May Enforce
Claims Without Possession of Subordinated Debt Securities.
All rights of action and claims under this Subordinated Debt
Securities Indenture or the Subordinated Debt Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Subordinated Debt
Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel (subject, with regard to the
Company, to the provisions of Section 12.01) be for the ratable benefit of the
Holders of the Subordinated Debt Securities in respect of which such judgment
has been recovered.

       

       

      
        
          
          

        

        
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      Section
5.06. Application of Money
Collected. Any money collected by the Trustee pursuant to this Article in
respect of any series of Subordinated Debt Securities shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal (and premium, if any) or
interest, if any, upon presentation of such Subordinated Debt Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

      

      FIRST: To
the payment of all amounts applicable to such series of Subordinated Debt
Securities in respect of which or for the benefit of which such money has been
collected due the Trustee under Section 6.07;

      

      SECOND:
To the payment of the amounts then due and unpaid for principal of (and premium,
if any) and interest, if any, on such series of Subordinated Debt Securities in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Subordinated Debt Securities for principal (and premium,
if any) and interest, if any, respectively; and

      

      THIRD: To
the payment of the balance, if any, to the Company or any other Person or
Persons legally entitled thereto.

      

      Section
5.07. Limitation on
Suits. No Holder of any Subordinated Debt Security of any series shall
have any right to institute any proceeding, judicial or otherwise, with respect
to this Subordinated Debt Securities Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless

      

      (a)     such
Holder has previously given written notice to the Trustee of a continuing Event
of Default or Default with respect to Subordinated Debt Securities of the same
series specifying such Event of Default or Default and stating that such notice
is a “Notice of Default”
hereunder;

      

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

      

      (c)     such
Holder of a Subordinated Debt Security has offered to the Trustee reasonable
indemnity satisfactory to it against the costs, expenses and liabilities to be
incurred in compliance with such request;

       

       

      
        
          
          

        

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

      

      (e)     no
direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of
the Outstanding Subordinated Debt Securities of such series;

      

      it being
understood and intended that no one or more Holders of Subordinated Debt
Securities of a particular series shall have any right in any manner whatever by
virtue of, or by availing of, any provision of this Subordinated Debt Securities
Indenture to affect, disturb or prejudice the rights of any other such Holders
or holders, or to obtain or to seek to obtain priority or preference over any
other such Holders or holders or to enforce any right under this Subordinated
Debt Securities Indenture, except in the manner herein provided and for the
equal and ratable benefit of all Holders of Subordinated Debt Securities of such
series.

      

      Section
5.08. Unconditional Right of
Holders to Receive Principal, Premium and Interest, if any.
Notwithstanding any other provision in this Subordinated Debt
Securities Indenture, the Holder of any Subordinated Debt Security shall have
the right, which is absolute and unconditional, to receive payment of the
principal of (and premium, if any) and (subject to Section 3.07) interest, if
any, on such Subordinated Debt Security on the respective Stated Maturities as
expressed in such Subordinated Debt Security (or, in the case of redemption or
exchange, on the Redemption Date or Exchange Date, as the case may be) and to
institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder or holder.

      

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

      

      Section
5.10. Rights and Remedies
Cumulative. Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Subordinated Debt Securities
in the last paragraph of Section 3.06, no right or remedy herein conferred upon
or reserved to the Trustee or to the Holders of Subordinated Debt Securities is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or

       

       

      
        
          
          

        

        
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      now or
hereafter existing at law or in equity or otherwise. The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

      

      Section
5.11. Delay or Omission Not
Waiver. No delay or omission of the Trustee or of any Holder of any
Subordinated Debt Security to exercise any right or remedy accruing upon any
Event of Default or Default shall impair any such right or remedy or constitute
a waiver of any such Event of Default or Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the
Holders of Subordinated Debt Securities may be exercised from time to time, and
as often as may be deemed expedient, by the Trustee or by the Holders of
Subordinated Debt Securities, as the case may be.

      

      Section
5.12. Control by
Holders. The Holders of a majority in aggregate principal amount of the
Outstanding Subordinated Debt Securities of any series shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee with respect to the Subordinated Debt Securities of such series, provided that

      

      (a)     such
direction shall not be in conflict with any rule of law or with this
Subordinated Debt Securities Indenture;

      

      (b)     the
Trustee shall not determine that the action so directed would be unjustly
prejudicial to the Holders of any Subordinated Debt Securities of any series not
taking part in such direction with respect to which the Trustee is acting as the
Trustee; and

      

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

      

      Section
5.13. Waiver of past
Defaults. The Holders of not less than a majority in aggregate principal
amount of the Outstanding Subordinated Debt Securities of any series may on
behalf of the Holders of all the Subordinated Debt Securities of such series
waive any past Event of Default or Default hereunder with respect to such series
and its consequences, except an Event of Default or Default

      

      (a)     in the
payment of the principal of (or premium, if any) or interest, if any, on any
Subordinated Debt Security of such series, or

      

      (b)     in
respect of a covenant or provision hereof which under Article 9 cannot be
modified or amended without the consent of the Holder of each Outstanding
Subordinated Debt Security of such series affected.

       

       

      
        
          
          

        

        
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      Upon any
such waiver, such Event of Default or Default shall cease to exist, and any
Event of Default or Default with respect to any series arising therefrom shall
be deemed to have been cured and not to have occurred for every purpose of this
Subordinated Debt Securities Indenture, but no such waiver shall extend to any
subsequent or other Event of Default or Default or impair any right consequent
thereon.

      

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

      

      

      ARTICLE
6

      THE TRUSTEE

      

      Section
6.01. Certain Duties and
Responsibilities. The duties and responsibilities of the Trustee shall be
as provided by the Trust Indenture Act. Notwithstanding the foregoing, no
provision of this Subordinated Debt Securities Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it. Whether or not therein expressly
so provided, every provision of this Subordinated Debt Securities Indenture
relating to the conduct or affecting the liability of or affording protection to
the Trustee shall be subject to the provisions of this Section
6.01.

      

      Section
6.02. Notice of
Defaults. Within 90 days after the occurrence of any Event of Default or
Default hereunder with respect to Subordinated Debt

       

       

      
        
          
          

        

        
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      Securities
of any series of which a Responsible Officer of the Trustee has actual knowledge
the Trustee shall transmit in the manner and to the extent provided in Section
1.06 to Holders of Subordinated Debt Securities of such series notice of such
Event of Default or Default hereunder known to the Trustee, unless such Event of
Default or Default shall have been cured or waived; provided, however, that, the
Trustee shall be protected in withholding such notice if it determines in good
faith that the withholding of such notice is in the interest of the Holders of
Subordinated Debt Securities of such series.

      

      Section
6.03. Certain Rights of
Trustee. Subject to the provisions of Section 6.01:

      

      (a)     the
Trustee may conclusively rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note,
coupon or other evidence of indebtedness or other paper or document (whether in
its original or facsimile form) believed by it to be genuine and to have been
signed or presented by the proper party or parties;

      

      (b)    any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board
of Directors of the Company may be sufficiently evidenced by a Board
Resolution;

      

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

      

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

      

      (e)     the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Subordinated Debt Securities Indenture at the request or
direction of any of the Holders pursuant to this Subordinated Debt Securities
Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity satisfactory to it against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction;

      

      (f)     the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument,
opinion,

       

       

      
        
          
          

        

        
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      report,
notice, request, direction, consent, order, bond, debenture, note, coupon or
other evidence of indebtedness or other paper or document, but the Trustee, in
its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit at the reasonable expense of the Company and shall
incur no liability by reason of such inquiry or investigation; provided that the
Trustee shall not be entitled to such information which the Company is prevented
from disclosing as a matter of law or contract;

      

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

      

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

      

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

      

      (j)     the
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities
hereunder.

      

      Section
6.04. Not Responsible for
Recitals or Issuance of Subordinated Debt Securities. The recitals
contained herein and in the Subordinated Debt Securities, except the
Trustee’s certificates of authentication, shall be taken as the statements of
the Company, and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Subordinated Debt Securities Indenture or of
the Subordinated Debt Securities, except that the Trustee represents and
warrants that it has duly authorized, executed and delivered this Subordinated
Debt Securities Indenture. Neither the Trustee nor any Authenticating Agent
shall be accountable for the use or application by the Company of Subordinated
Debt Securities or the proceeds thereof.

      

      Section
6.05. May Hold Subordinated
Debt Securities. The Trustee, any Authenticating Agent, any Paying Agent,
any Subordinated Debt Security Registrar and any Calculation Agent or any other
agent of the Company, in its individual or any other capacity, may become the
owner or pledgee of Subordinated Debt Securities and, subject to Sections 6.08
and 6.13, may

       

       

      
        
          
          

        

        
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      otherwise
deal with the Company with the same rights it would have if it were not Trustee,
Authenticating Agent, Paying Agent, Subordinated Debt Security Registrar,
Calculation Agent or such other agent.

      

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

      

      Section
6.07.  Compensation
and Reimbursement.

      

      The
Company agrees

      

      (a)     to pay to
the Trustee from time to time compensation for all services rendered by it
hereunder as agreed upon in writing by the Company from time to time (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

      

      (b)    except as
otherwise expressly provided herein, to reimburse the Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Subordinated Debt Securities
Indenture (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as shall be determined by a court of competent jurisdiction to have
been caused by its own negligence or bad faith; and

      

      
        (c)     to
indemnify the Trustee for, and to hold it harmless against, any and all
loss, liability, claim, damage or expense (including legal fees and expenses)
incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder including the costs and expenses of defending itself against any claim
or liability in connection with the exercise or performance of any of its powers
or duties hereunder but excluding any tax liabilities of the Trustee in respect
of its net profits.

      

      

      The
Trustee shall notify the Company in writing of the commencement of any action or
claim in respect of which indemnification may be sought promptly after a
Responsible Officer of the Trustee becomes aware of such commencement (provided
that the failure to make such notification shall not affect the Trustee’s rights
hereunder) and the Company shall be entitled to participate in, and to the
extent it shall wish, to assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Trustee. The Trustee shall not compromise
or settle any such action or claim without the written consent of the Company,
which consent shall not be unreasonably withheld.

       

       

      
        
          
          

        

        
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      As
security for the performance of the obligations of the Company under this
Section, the Trustee shall have a senior claim to which the Subordinated Debt
Securities are hereby made subordinate, upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the payment of
principal of (or premium, if any) or interest, if any, on the Subordinated Debt
Securities.

      

      Section
6.08. Disqualification;
Conflicting Interests. If the Trustee has or shall acquire a conflicting
interest within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by,
and subject to the provisions of, the Trust Indenture Act and this Subordinated
Debt Securities Indenture.

      

      Section
6.09. Corporate Trustee
Required; Eligibility. There shall at all times be a Trustee hereunder
with respect to each series which shall be a corporation organized and doing
business under the laws of the United States, any State thereof or the District
of Columbia, authorized under such laws to exercise corporate trust powers,
having a combined capital and surplus of at least $50,000,000, subject to
supervision or examination by Federal or State or District of Columbia authority
and, if there be such corporation willing and able to act as trustee on
reasonable and customary terms, having its corporate trust office or agency in
the Borough of Manhattan, The City of New York, New York. If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article 6.

      

      Section
6.10. Resignation and Removal;
Appointment of Successor. (a) No resignation or removal of the Trustee
and no appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 6.11.

      

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

       

       

      
        
          
          

        

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

      

      
        (d)      If at any
time:

      

      

      (i)
     the
Trustee shall fail to comply with Section 6.08 after written request therefor by
the Company or by any Holder who has been a bona fide Holder of a Subordinated
Debt Security of the series as to which the Trustee has a conflicting interest
for at least six months, or

      

      (ii)     the
Trustee shall cease to be eligible under Section 6.09 and shall fail to resign
after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Subordinated Debt Security for at least six months,
or

      

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

      

      (iv)     the
Trustee shall fail to perform its obligations to the Company under the
Subordinated Debt Securities Indenture in any material respect,

      

      then, in
any such case, (A) the Company by a Board Resolution may remove the Trustee with
respect to any or all series of Subordinated Debt Securities or (B) subject to
Section 5.14 (and except in the case of subparagraph 6.10(d)(iv) above), any
Holder who has been a bona fide Holder of a Subordinated Debt Security for at
least six months (and, in the case of Section 6.10(d)(i) above, who is a Holder
of a Subordinated Debt Security of the series as to which the Trustee has a
conflicting interest) may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee with respect to all Subordinated Debt Securities and the appointment of
a successor Trustee or Trustees.

      

       

       

      
        
          
          

        

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

      

      

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

      

      Section
6.11.  Acceptance of
Appointment by Successor.

      

      (a)     In case of
the appointment hereunder of a successor Trustee with respect to all
Subordinated Debt Securities, every such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on request of
the Company or the successor Trustee, such retiring Trustee shall, upon payment
of its charges, execute and deliver an instrument transferring to such successor
Trustee, all the rights, powers and trusts of the retiring Trustee and shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.

       

       

      
        
          
          

        

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

      

      (c)     Upon
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts referred to in paragraph
(a) or (b) of this Section 6.11, as the case may be.

      

      (d)     No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this
Article 6.

       

       

      
        
          
          

        

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

      

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

      

      Section
6.14. Appointment of
Authenticating Agent. The Trustee may at any time appoint an
Authenticating Agent or Agents with respect to one or more series of
Subordinated Debt Securities which shall be authorized to act on behalf of the
Trustee to authenticate Subordinated Debt Securities of such series upon
original issue, or issued upon exchange, registration of transfer or partial
redemption thereof or in lieu of destroyed, lost or stolen Subordinated Debt
Securities, and Subordinated Debt Securities so authenticated shall be entitled
to the benefits of this Subordinated Debt Securities Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Subordinated Debt Securities
Indenture to the authentication and delivery of Subordinated Debt Securities by
the Trustee or the Trustee’s certificate of authentication, such reference shall
be deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation or national
banking association organized and doing business under the laws of the United
States, any State thereof or the District of Columbia, authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal
or State or District of Columbia authority. If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such Authenticating Agent
shall be deemed to be

       

       

      
        
          
          

        

        
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      its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section 6.14, such Authenticating
Agent shall resign immediately in the manner and with the effect specified in
this Section.

      

      Any
corporation or national banking association into which an Authenticating Agent
may be merged or converted or with which it may be consolidated, or any
corporation or national banking association resulting from any merger,
conversion or consolidation to which such Authenticating Agent shall be a party,
or any corporation or national banking association succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to
be an Authenticating Agent, provided such corporation or national banking
association shall be otherwise eligible under this Section 6.14, without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

      

      An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Company. The Trustee may at any time terminate the agency
of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 6.14, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give
notice to the Holders of Subordinated Debt Securities in the manner and to the
extent provided in Section 1.06. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the rights,
powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section
6.14.

      

      The
Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 6.14.

      

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

      

      This is
one of the Subordinated Debt Securities referred to in the within- mentioned
Subordinated Debt Securities Indenture.

       

       

      
        
          
          

        

        
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                  THE
      BANK OF NEW YORK MELLON

                  LONDON
      BRANCH

                	 
      
	
                  as
      Trustee

                	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  By:

                	 
      	 
      
	 
      	
                  as
      Authenticating Agent

                	 
      
	 
      	 
      	 
      
	 	 	 
	By:	 	 
	 	Authorized
      Signatory	 

        

       

       

      ARTICLE
7

      HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

      

      Section
7.01. Company to Furnish
Trustee Names and Addresses of Holders. The Company, with
respect to any series of Subordinated Debt Securities in
registered form, will furnish or cause to be furnished to the
Trustee

      

      (a)     quarterly,
not more than 15 days after each Regular Record Date (or after each of the dates
to be specified for such purpose for non-interest bearing Subordinated Debt
Securities and Subordinated Debt Securities on which interest is paid less
frequently than quarterly as contemplated by Section 3.01), a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders
of registered Subordinated Debt Securities as of such Regular Record Date or
such specified date, and

      

      (b)     at such
other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is
furnished.

      

      The
Company need not furnish or cause to be furnished to the Trustee pursuant to
this Section 7.01 the names and addresses of Holders of registered Subordinated
Debt Securities so long as the Trustee acts as Subordinated Debt Security
Registrar with respect to such series of Subordinated Debt
Securities.

      

      Section
7.02.  Preservation
of Information; Communication to Holders.

      

      (a)     The Trustee
shall preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders (i) contained in the most recent list furnished to the
Trustee as provided in Section 7.01 and (ii) received by the

       

       

      
        
          
          

        

        
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      Trustee
in its capacity as Paying Agent or Capital Security Registrar (if so acting).
The Trustee may destroy any list furnished to it as provided in Section 7.01
upon receipt of a new list so furnished.

      

      (b)     The
rights of the Holders of Subordinated Debt Securities of any series to
communicate with other Holders with respect to their rights under this
Subordinated Debt Securities Indenture or under the Subordinated Debt
Securities, and the corresponding rights and privileges of the Trustee, shall be
as provided by the Trust Indenture Act.

      

      (c)     Every
Holder, by receiving and holding a Subordinated Debt Security, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent
of any of them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders in accordance with
Section 7.02(b) or otherwise made pursuant to the Trust Indenture
Act.

      

      Section
7.03.  Reports by
Trustee.

      

      (a)     On or
before May 15 in each year following the date hereof, so long as any
Subordinated Debt Securities are Outstanding hereunder, the Trustee shall
transmit to Holders as provided in the Trust Indenture Act a brief report dated
as of a date required by and in compliance with the Trust Indenture
Act.

      

      (b)     A copy of
each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each securities exchange upon which the Trustee has been
notified that the Subordinated Debt Securities are listed, with the Commission
and with the Company. The Company will notify the Trustee when Subordinated Debt
Securities are listed on any securities exchange.

      

      (c)     The
Company will furnish the Trustee with interim and annual reports and upon
receipt thereof, the Trustee will mail such reports to all record holders of
Subordinated Debt Securities. In addition, the Company will furnish the Trustee
with all notices of meetings at which holders of Subordinated Debt Securities of
a particular series are entitled to vote, and all other reports and
communications that are made generally available to holders of Subordinated Debt
Securities. The Trustee will, at the Company’s expense, make such notices,
reports and communications available for inspection by holders of Subordinated
Debt Securities in such manner as the Company may determine and, in the case of
any notice received by the Trustee in respect of any meeting at which holders of
Subordinated Debt Securities of a particular series are entitled to vote, will
mail to all such record holders of Subordinated Debt Securities, at the
Company’s expense, a notice containing a summary of the information set forth in
such notice of meeting.

       

       

      
        
          
          

        

        
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      Section
7.04.  Reports by
Company.  The Company shall:

      

      (a)     file with
the Trustee, within 15 days after the Company is required to file the same with
the Commission, copies of the annual reports and of the information, documents
and other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which the
Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of such Sections, then it
shall file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations. Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officer’s
Certificate);

      

      (b)     file with
the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information,
documents and reports with respect to compliance by the Company with the
conditions and covenants of this Subordinated Debt Securities Indenture as may
be required from time to time by such rules and regulations. Delivery of such
reports, information and documents to the Trustee is for informational purposes
only and the Trustee’s receipt of such shall not constitute constructive notice
of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officer’s
Certificate); and

      

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

      

      

      ARTICLE
8

      CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

      

      Section
8.01.  Company May
Consolidate, Etc., Only on Certain Terms. The
Company may, without the consent of Holders of any Subordinated Debt

       

      

      
        
          
          

        

        
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      Securities
of any series Outstanding under this Subordinated Debt Securities Indenture,
consolidate or amalgamate with or merge into any other corporation or convey or
transfer or lease its properties and assets substantially as an entirety to any
Person, provided
that:

      

      (a)     the
corporation formed by such consolidation or amalgamation or into which the
Company is merged or the Person which acquires by conveyance or transfer the
properties and assets of the Company substantially as an entirety (i) shall be a
company organized and existing under the laws of the United Kingdom or any
political subdivision thereof, and (ii) shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, the due and punctual payment of the principal of (and premium,
if any) and interest, if any, on all the Subordinated Debt Securities in
accordance with the provisions of such Subordinated Debt Securities and this
Subordinated Debt Securities Indenture and the performance of every covenant of
this Subordinated Debt Securities Indenture on the part of the Company to be
performed or observed; and

      

      (b)     the
Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, amalgamation, merger,
conveyance or transfer and such supplemental indenture comply with this Article
and that all conditions precedent herein provided for relating to such
transaction have been complied with.

      

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

      

      Section 8.03.
Assumption of Obligations. With respect to the Subordinated Debt
Securities of any series, a wholly-owned subsidiary of the Company (a “successor
entity”) may without the consent of any Holder assume the obligations of
the Company (or any corporation which shall have previously assumed the
obligations of the Company) for the due and punctual payment of the principal of
(and premium, if any, on) and interest, if any, on any series of Subordinated
Debt Securities in accordance with the provisions of such Subordinated Debt
Securities and this Subordinated Debt Securities Indenture and the performance
of every covenant of this Subordinated Debt Security Indenture and such
series of Subordinated Debt Securities on the part of the Company to be
performed or observed provided,
that:

       

       

      
        
          
          

        

        
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      (a)     the
successor entity shall expressly assume such obligations by an amendment to the
Subordinated Debt Securities Indenture, executed by the Company and such
successor entity, if applicable, and delivered to the Trustee, in form
satisfactory to the Trustee, and the Company shall, by amendment to the
Subordinated Debt Securities Indenture, unconditionally guarantee (such
guarantee shall be given on a subordinated basis consistent with Article 12
hereof) all of the obligations of such successor entity under the Subordinated
Debt Securities of such series and the Subordinated Debt Securities Indenture as
so modified by such amendment (provided, however, that, for
the purposes of the Company’s obligation to pay Additional Amounts, if any,
payable pursuant to Section 10.04 in respect of the Subordinated Debt
Securities, references to such successor entity’s country of organization will
be added to references to the United Kingdom);

      

      (b)     such
successor entity shall confirm in such amendment to the Subordinated Debt
Securities Indenture that such successor entity will pay all Additional Amounts,
if any, payable pursuant to Section 10.04 in respect of all the Subordinated
Debt Securities (provided,
however, that for these purposes such successor entity’s country of
organization will be substituted for the references to the United
Kingdom);

      

      (c)     immediately
after giving effect to such assumption of obligations, no Event of Default or
Default and no event which, after notice or lapse of time or both, would become
an Event of Default or Default, shall have occurred and be continuing;
and

      

      (d)     the
Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such assumption complies with this Article
and that all conditions precedent herein provided for relating to such
assumption have been complied with.

      

      Upon any
such assumption, the successor entity shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Subordinated
Debt Securities Indenture with respect to any such Subordinated Debt Securities
with the same effect as if such successor entity had been named as the Company
in this Subordinated Debt Securities Indenture, and the Company or any legal and
valid successor corporation which shall theretofore have become such in the
manner prescribed herein, shall be released from all liability as obligor upon
any such Subordinated Debt Securities except as provided in clause (a) of this
Section 8.03.

      

      

      
        
          
          

        

        
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      In the
event of any such assumption, any Additional Amounts, if any, payable pursuant
to Section 10.04 will be payable in respect of taxes, levies, imposts, duties,
charges, fees, deductions or withholdings (“Taxes”) imposed by the
jurisdiction in which the assuming corporation is incorporated (subject to
exceptions equivalent to those that apply to any obligation to pay Additional
Amounts in respect of Taxes imposed by any Taxing Jurisdiction) rather than
Taxes imposed by any Taxing Jurisdiction; provided however, that if the
Company makes payment under the guarantee, the Company shall be required to pay
Additional Amounts related to Taxes (subject to the exceptions set forth in
Section 10.04) imposed by any Taxing Jurisdiction by reason of such
payments.

      

      

      ARTICLE
9

      SUPPLEMENTAL INDENTURES

      

      Section
9.01.  Supplemental
Indentures without Consent of Holders. Without
the consent of any Holders, the Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of
the following purposes:

      

      (a)    to
evidence the succession of another corporation to the Company and the assumption
by any such successor of the covenants of the Company herein and in the
Subordinated Debt Securities;

      

      (b)    to add to
the covenants of the Company for the benefit of the Holders of all or any series
of Subordinated Debt Securities (and, if such covenants are to be for the
benefit of less than all series of Subordinated Debt Securities, stating that
such covenants are expressly being included solely for the benefit of such
series) or to surrender any right or power herein conferred upon the
Company;

      

      
        (c)     to add
any additional Events of Default or Defaults;

      

      

      (d)    to add
to, change or eliminate any of the provisions of this Subordinated Debt
Securities Indenture, or any supplemental indenture, provided that any such change
or elimination shall become effective only when there is no Subordinated Debt
Security Outstanding of any series created prior to the execution of such
supplemental indenture effecting such change or elimination which is entitled to
the benefit of such provision, and adversely affected by such addition, change
or elimination;

      

      
        (e)     to secure
the Subordinated Debt Securities;

      

       

       

      
        
          
          

        

        
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      (f)     to
establish the form or terms of Subordinated Debt Securities of any series as
permitted by Sections 2.01 or 3.01;

      

      (g)    to change
any Place of Payment, so long as the Place of Payment as required by Section
3.01 is maintained;

      

      (h)    to cure
any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein or in any supplemental
indenture;

      

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

      

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

      

      (k)    to change
or eliminate any provision of this Subordinated Debt Securities Indenture as
permitted by Section 1.07.

      

      Section
9.02. Supplemental Indentures
with Consent of Holders. With the consent of the Holders of not less than
66 2/3% in aggregate principal amount of the Outstanding Subordinated Debt
Securities of each series affected by such supplemental Subordinated Debt
Securities Indenture (voting as a class), by Act of said Holders delivered to
the Company and the Trustee, the Company, when authorized by a Board Resolution,
and the Trustee may enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Subordinated Debt Securities Indenture
or of modifying in any manner the rights of the Holders of Subordinated Debt
Securities of such series under this Subordinated Debt Securities Indenture;
provided, however, that
no such supplemental indenture may, without the consent of the Holder of each
Outstanding Subordinated Debt Security affected thereby,

      

      (a)    change the Stated
Maturity, if any, of any principal amount or any interest amounts in respect of
any such Subordinated Debt Security, reduce the principal amount thereof or the
rate of interest, if any, thereon, or any premium payable upon the redemption
thereof, or reduce the amount of principal of an Original Issue Discount
Security that would be due and payable upon an acceleration of the Maturity
thereof pursuant to Section 5.02, or change the

       

       

      
        
          
          

        

        
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      obligation
of the Company (or its successor) to pay Additional Amounts pursuant to Section
10.04 (except as contemplated by Section 8.01(a) and permitted by Section
9.01(a)) on the Subordinated Debt Securities, or the currency of payment of the
principal amount of, premium, if any, or interest on, any such Subordinated Debt
Security, or impair the right to institute suit for the enforcement of any such
payment on or after the Stated Maturity thereof (or, in the case of redemption
or exchange, on or after the Redemption Date or the Exchange Date as the case
may be); or

      

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

      

      (c)     modify
any of the provisions of this Section or Section 5.13 except to increase any
such percentage or to provide that certain other provisions of this Subordinated
Debt Securities Indenture cannot be modified or waived without the consent of
the Holder of each Outstanding Subordinated Debt Security affected thereby;
provided, however, that
this clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the Trustee” and concomitant
changes in this Section, or the deletion of this proviso, in accordance with the
requirements of Sections 6.11(b) and 9.01(j), or

      

      (d)    change in
any manner adverse to the interests of the Holders of any Subordinated Debt
Securities, the subordination provisions of the Subordinated Debt Securities or
the terms and conditions of the obligations of the Company in respect of the due
and punctual payment of any amounts due and payable on the Subordinated Debt
Securities.

      

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

      

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

       

       

      
        
          
          

        

        
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      Section
9.03. Execution of
Supplemental Indentures. In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Subordinated Debt Securities
Indenture, the Trustee shall be entitled to receive, and (subject to Section
6.01) shall be fully protected in relying upon, an Opinion of Counsel stating
that the execution of such supplemental indenture is authorized or permitted by
this Subordinated Debt Securities Indenture. The Trustee may, but shall not be
obliged to, enter into any such supplemental indenture which affects the
Trustee’s own rights, duties or immunities under this Subordinated Debt
Securities Indenture or otherwise.

      

      Section
9.04. Effect of Supplemental
Indentures. Upon the execution of any supplemental indenture under this
Article, this Subordinated Debt Securities Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a part of this
Subordinated Debt Securities Indenture for all purposes; and every Holder of
Subordinated Debt Securities theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby, except as otherwise expressed
therein.

      

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

      

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

      

      

      ARTICLE
10

      COVENANTS

      

      Section
10.01. Payment Of Principal,
Premium, and Interest. The Company covenants and agrees for the benefit
of each series of Subordinated Debt Securities that it will duly and punctually
pay the principal of (and premium, if any) and (subject to Section 3.07)
interest on, if any, the Subordinated Debt Securities of that series in
accordance with the terms of the Subordinated Debt Securities and this
Subordinated Debt Securities Indenture.

       

       

      
        
          
          

        

        
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      Section
10.02. Maintenance of Office
or Agency. The Company will maintain in each Place of Payment for any
series of Subordinated Debt Securities an office or agency where Subordinated
Debt Securities of that series may be presented or surrendered for payment,
where Subordinated Debt Securities of that series may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Subordinated Debt Securities of that series and
this Subordinated Debt Securities Indenture may be served; provided, however, that at
the option of the Company in the case of registered Subordinated Debt Securities
of such series, payment of any interest thereon may be made by check mailed to
the address of the Person entitled herein as such address shall appear in the
Subordinated Debt Security Register. With respect to the Subordinated Debt
Securities of any series, such office or agency in each Place of Payment shall
be specified as contemplated by Section 3.01, and if not so specified, initially
shall be the Corporate Trust Office of the Trustee. Unless otherwise specified
pursuant to Section 3.01, the Company will maintain in the Borough of Manhattan,
The City of New York, an office or agency where notices and demands to or upon
the Company in respect of Subordinated Debt Securities of any series and this
Subordinated Debt Securities Indenture may be served. The Company will give
prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee. The Company
hereby appoints the Trustee as its agent to receive all presentations,
surrenders, notices and demands.

      

      The
Company may also from time to time designate one or more other offices or
agencies (in or outside the Borough of Manhattan, The City of New York) where
the Subordinated Debt Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided,
however, that no such designation or rescission shall in any manner
relieve the Company of any obligation to maintain an office or agency in each
Place of Payment (except as otherwise indicated in this Section) for
Subordinated Debt Securities of any series for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or
agency.

      

      Section
10.03. Money for Payments to
be Held in Trust. If the Company shall at any time act as Paying Agent
with respect to the Subordinated Debt Securities of any series, it will, on or
before each due date for payment of the principal of (and premium, if any) or
interest, if any, if any, on any of the Subordinated Debt Securities of that
series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal (and premium, if any) or interest,
if any, so becoming due until such sums shall be paid

       

       

      
        
          
          

        

        
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      to such
Persons or otherwise disposed of as herein provided and will promptly notify the
Trustee of its failure so to act.

      

      Whenever
the Company shall have one or more Paying Agents for any series of Subordinated
Debt Securities, it will, prior to each due date for payment of the principal of
(and premium, if any) or interest, if any, on any Subordinated Debt Securities
of that series deposit with a Paying Agent a sum sufficient to pay the principal
(and premium, if any) or interest, if any, so becoming due, such sum to be held
in trust for the benefit of the Persons entitled to such principal, premium or
interest, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or its failure so to act. Unless
otherwise specified as contemplated by Section 3.01, the Trustee shall be the
Company’s Paying Agent. The Company will cause each Paying Agent for any series
of Subordinated Debt Securities other than the Trustee to execute and deliver to
the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent
will:

      

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

      

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

      

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

      

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

      

      Any money
deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of (and premium, if any) or interest, if
any, on any Subordinated Debt Security of any series and remaining unclaimed for
two years after such principal (and premium, if any) or interest, if any, have
become due and payable shall be paid to the Company on Company

       

       

      
        
          
          

        

        
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      Request,
or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Subordinated Debt Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may
at the expense of the Company cause to be published at least once, in an
Authorized Newspaper, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
paid to the Company.

      

      Section
10.04. Additional
Amounts. Unless otherwise specified in any Board Resolution establishing
the terms of Subordinated Debt Securities of a series in accordance with Section
3.01, all amounts of principal, and premium, if any, and interest, if any, on
any series of Subordinated Debt Securities will be paid by the Company without
deduction or withholding for, or on account of, any and all present and future
income, stamp and other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings now or hereafter imposed, levied, collected, withheld
or assessed by or on behalf of the United Kingdom or any political subdivision
or authority thereof or therein having the power to tax (the “Taxing Jurisdiction”), unless
such deduction or withholding is required by law.

      

      If
deduction or withholding of any such taxes, levies, imposts, duties, charges,
fees, deductions or withholdings shall at any time be required by the Taxing
Jurisdiction, the Company will pay such additional amounts of, or in respect of,
the principal amount of, premium, if any, and interest, if any, on any series of
Subordinated Debt Securities (“Additional Amounts”) as may be
necessary in order that the net amounts paid to the Holders of Subordinated Debt
Securities of the particular series, after such deduction or withholding, shall
equal the respective amounts of principal, premium, if any, and interest, if
any, which would have been payable in respect of such Subordinated Debt
Securities had no such deduction or withholding been required; provided, however, that the
foregoing will not apply to any such tax, levy, impost, duty, charge, fee,
deduction or withholding which would not have been payable or due but for the
fact that:

      

      (i)     the Holder
or the beneficial owner of the Subordinated Debt Security is a domiciliary,
national or resident of, or engaging in business or maintaining a permanent
establishment or physically present in, the Taxing Jurisdiction or otherwise has
some connection with the Taxing Jurisdiction other than the holding or ownership
of a Subordinated Debt Security, or the collection of any payment of (or in
respect of) principal of, premium, if any, or interest, if any, on any
Subordinated Debt Security of the relevant series,

       

       

      
        
          
          

        

        
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      (ii)     except in
the case of a winding-up of the Company in the United Kingdom, the relevant
Subordinated Debt Security is presented (where presentation is required) for
payment in the United Kingdom,

      

      (iii)     the
relevant Subordinated Debt Security is presented (where presentation is
required) for payment more than 30 days after the date payment became due or was
provided for, whichever is later, except to the extent that the Holder would
have been entitled to such Additional Amount on presenting (where presentation
is required) the same for payment at the close of such 30 day period,
or

      

      (iv)     the
Holder or the beneficial owner of the relevant Subordinated Debt Security or the
beneficial owner of any payment of (or in respect of) principal of, or interest,
if any, on such Subordinated Debt Security failed to comply with a request of
the Company or its liquidator or other authorized person addressed to the Holder
(x) to provide information concerning the nationality, residence or identity of
the Holder or such beneficial owner or (y) to make any declaration or other
similar claim to satisfy any information requirement, which in the case of (x)
or (y), is required or imposed by a statute, treaty, regulation or
administrative practice of the Taxing Jurisdiction as a precondition to
exemption from all or part of such tax, assessment or other governmental
charge;

      

      (v)
     the
withholding or deduction is imposed on a payment to or for the benefit of an
individual and is required to be made pursuant to any European Union Directive
on the taxation of savings implementing the proposal for a European Union
Directive presented by the European Union Commission on July 18, 2001 or any law
implementing or complying with, or introduced in order to conform to, such
directive;

      

      (vi)    the
relevant Subordinated Debt Security is presented (where presentation is
required) for payment by or on behalf of a holder who would have been able to
avoid such withholding or deduction by presenting (where presentation is
required) the relevant Subordinated Debt Security to another paying agent in a
Member State of the European Union; or

      

      
        (vii)     any
combination of subclauses (i) through (vi) above;

      

      

      nor shall
Additional Amounts be paid with respect to the principal of, and interest on,
the Subordinated Debt Securities to any holder who is a fiduciary or partnership
or settlor with respect to such fiduciary or a member of such partnership other
than the sole beneficial owner of such payment to the extent such payment would
be required by the laws of any Taxing Jurisdiction to be included in the income
for tax purposes of a beneficiary or partner or settlor with

       

       

      
        
          
          

        

        
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      respect
to such fiduciary or a member of such partnership or a beneficial owner who
would not have been entitled to such Additional Amounts, had it been the
holder.

      

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

      

      Section
10.05. Corporate
Existence. Subject to Article 8, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate
existence.

      

      Section
10.06. Statement as to
Compliance. The Company will deliver to the Trustee, within 120 days
after the end of each fiscal year, a certificate in compliance with Section
314(a)(4) of the Trust Indenture Act.

      

      Section
10.07. Original Issue
Document. The Company shall provide to the Trustee on a timely basis such
information, if any, as the Trustee requires to enable the Trustee to prepare
and file any form required to be submitted by the Company with the Internal
Revenue Service and the Holders of the Subordinated Debt Securities relating to
any original issue discount, including, without limitation, Form 1099-OID or any
successor form.

      

      

      ARTICLE
11

      REDEMPTION OF SUBORDINATED DEBT SECURITIES

      

      Section
11.01. Applicability of
Article. Subordinated Debt Securities of any series shall be redeemable
in accordance with their terms and (except as otherwise specified pursuant to
Section 3.01 for Subordinated Debt Securities of any series) in accordance with
this Article 11.

      

      Section
11.02. Election to Redeem;
Notice to Trustee. The election of the Company to redeem any Subordinated
Debt Securities shall be evidenced by a Board Resolution. The Company shall, at
least 60 days prior to the Redemption Date fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date, of the principal amount of Subordinated Debt Securities of such
series to be redeemed and, if applicable, the tenor of the Subordinated Debt
Securities to be redeemed. In the case of any

       

       

      
        
          
          

        

        
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      redemption
of Subordinated Debt Securities of any series prior to the expiration of any
provision restricting such redemption provided in the terms of such Subordinated
Debt Securities or elsewhere in this Subordinated Debt Securities Indenture, the
Company shall furnish the Trustee with respect to such Subordinated Debt
Securities with an Officer’s Certificate evidencing compliance with or waiver of
such provision.

      

      Section
11.03. Selection by Trustee of
Subordinated Debt Securities to Be Redeemed. If less than all
the Subordinated Debt Securities of any series are to be redeemed, the
particular Subordinated Debt Securities to be redeemed shall be selected not
more than 60 days nor less than 30 days prior to the Redemption Date by the
Trustee, from the Outstanding Subordinated Debt Securities of such series not
previously called for redemption, by such method as the Trustee shall deem fair
and appropriate and which may provide for the selection for redemption of
portions (equal to the minimum authorized denomination for registered
Subordinated Debt Securities of that series or any multiple thereof) of the
principal amount of Subordinated Debt Securities of such series of a
denomination larger than the minimum authorized denomination for Subordinated
Debt Securities of that series.

      

      The
Trustee shall promptly notify the Company in writing of the Subordinated Debt
Securities selected for redemption and, in the case of any Subordinated Debt
Securities selected for partial redemption, the principal amount thereof to be
redeemed.

      

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

      

      Section
11.04. Notice of
Redemption. Notice of redemption shall be given not less than 30 nor more
than 60 days prior to the Redemption Date to each Holder of Subordinated Debt
Securities to be redeemed in the manner and to the extent provided in Section
1.06.

      

      All
notices of redemption shall state:

      

      
        (a)        the
Redemption Date,

      

      

      
        (b)
       the
Redemption Price,

      

      

      

      
        
          
          

        

        
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      (c)     if less
than all the Outstanding Subordinated Debt Securities of any series are to be
redeemed, the principal amount of the Subordinated Debt Securities to be
redeemed,

      

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

      

      (e)     the place
or places where such Subordinated Debt Securities are to be surrendered for
payment of the Redemption Price, and

      

      (f)
     the
CUSIP, Common Code and/or ISIN number or numbers, if any, with respect to such
Subordinated Debt Securities.

      

      Notice of
redemption of Subordinated Debt Securities to be redeemed at the selection of
the Company shall be given by the Company or, at the Company’s Request, by the
Trustee in the name and at the expense of the Company.

      

      Section
11.05. Deposit of Redemption
Price. On or prior to any Redemption Date, the Company shall deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as Paying
Agent, segregate and hold in trust as provided in Section 10.03) an amount of
money sufficient to pay the Redemption Price of, and (except if the Redemption
Date shall be an Interest Payment Date) accrued but unpaid interest on, all the
Subordinated Debt Securities which are to be redeemed on that date.

      

      Section
11.06. Subordinated Debt
Securities Payable on Redemption Date. Notice of redemption
having been given as aforesaid, the Subordinated Debt Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest, if any) such Subordinated Debt Securities shall cease to accrue
interest. Upon surrender of any such Subordinated Debt Security for redemption
in accordance with said notice, such Subordinated Debt Security shall be paid by
the Company at the Redemption Price, together with accrued but unpaid interest
to the Redemption Date; provided, however, that with respect to any Subordinated
Debt Securities in registered form, unless otherwise specified as contemplated
by Section 3.01, a payment of interest which is payable on a Interest Payment
Date which is the Redemption Date, shall be payable to the Holders of such
Subordinated Debt Securities, or one or more Predecessor Securities, registered
as such at the close of business on the relevant Regular or Deferred Record Date
according to the terms of the Subordinated Debt Securities and the provisions of
Section 3.07. Subordinated Debt Securities in definitive form shall be presented
for redemption to the Paying Agent.

       

       

      
        
          
          

        

        
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      If any
Subordinated Debt Security called for redemption shall not be so paid upon
surrender thereof for redemption, the Subordinated Debt Security shall, until
paid, continue to accrue interest from and after the Redemption Date in
accordance with its terms and the provisions of Section 3.07.

      

      Section
11.07. Subordinated Debt
Securities Redeemed in Part. Any Subordinated Debt Security which is to
be redeemed only in part shall be surrendered at a Place of Payment therefor
(with, only in the case of Subordinated Debt Securities in registered form, if
the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or his attorney duly authorized in writing), and
the Company shall execute, and the Trustee shall authenticate and deliver to the
Holder of such Subordinated Debt Security without service charge, a new
Subordinated Debt Security or Subordinated Debt Securities of the same series of
any authorized denomination as requested by such Holder, in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Subordinated Debt Security so surrendered.

      

      Section
11.08.  Optional
Redemption Due to Changes in Tax Treatment. Unless
otherwise provided as contemplated by Section 3.01 with respect to any series of
Subordinated Debt Securities, the Subordinated Debt Securities are redeemable,
as a whole but not in part, at the option of the Company, on not less than 30
nor more than 60 days’ notice, on any Interest Payment Date, at a redemption
price equal to 100% of the principal amount, together with accrued but unpaid
interest, if any, in respect of such series of Subordinated Debt Securities to
the date fixed for redemption (or, in the case of Discount Securities, the
accreted face amount thereof, together with accrued interest, if any), if, at
any time, the Company shall determine that as a result of a change in or
amendment to the laws or regulations of the Taxing Jurisdiction (including any
treaty to which such Taxing Jurisdiction is a party), or any change in the
official application or interpretation of such laws or regulations (including a
decision of any court or tribunal) which change or amendment becomes effective
on or after a date included in the terms of such series of Subordinated Debt
Securities pursuant to Section 3.01:

      

      (a)     in making
payment under the Subordinated Debt Securities in respect of principal or
premium, if any, or interest, if any, it has or will or would on the next
Interest Payment Date become obligated to pay Additional Amounts;

      

      (b)    the
payment of interest on the next Interest Payment Date in respect of any of the
Subordinated Debt Securities would be treated as “distributions” within the
meaning of Section 209 of the Income and Corporation Taxes Act 1988 of the
United Kingdom (or any statutory modification or re-enactment thereof for the
time being); or

       

       

      
        
          
          

        

        
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      (c)     on the next
Interest Payment Date the Company would not be entitled to claim a deduction in
respect of such payment of interest in computing its United Kingdom taxation
liabilities (or the value of such deduction to the Company would be materially
reduced).

      

      In any
case where the Company shall determine that as a result of any change in the
official application or interpretation of any laws or regulations it is entitled
to redeem the Subordinated Debt Securities of any series, the Company shall be
required to deliver to the Trustee prior to the giving of any notice of
redemption a written legal opinion of independent United Kingdom counsel of
recognized standing (selected by the Company) in a form satisfactory to the
Trustee confirming that the relevant change in the official application or
interpretation of such laws or regulations has occurred and that the Company is
entitled to exercise its right of redemption.

      

      Section
11.09.  [Reserved.]

      

       

      ARTICLE
12

      SUBORDINATION OF SUBORDINATED DEBT SECURITIES

      

      Section
12.01. Subordinated Debt
Securities Subordinate to Claims of Senior
Creditors.

      

      (a)     Unless
otherwise provided as contemplated by Section 3.01 with respect to any series of
Subordinated Debt Securities, the Company covenants and agrees, and each Holder
of Subordinated Debt Securities of each series, by his acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter
set forth in this Article Twelve, the Subordinated Debt Securities of such
series and the payment of the principal of, premium, if any and interest, if
any, on each and all of the Subordinated Debt Securities of such series are
hereby expressly made in the event of a winding-up of the Company subordinate
and subject in right of payment to the prior payment in full of all claims of
the Senior Creditors.

      

      (b)     The
provisions of this Section shall apply only to the payment of principal,
premium, if any, and interest, if any, in respect of the Subordinated Debt
Securities of any series and nothing herein shall affect or prejudice the
payment of the costs, charges, expenses, liabilities or remuneration of the
Trustee or the rights and remedies of the Trustee in respect
thereof.

      

      (c)     The
provisions of this Section shall not be applicable to any amounts of principal,
premium, if any, and interest, if any, in respect of any of the Subordinated
Debt Securities of any series for the payment of which funds have been deposited
in trust with the Trustee or any Paying Agent or have been set

       

       

      
        
          
          

        

        
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      aside by
the Company in trust in accordance with the provisions of this Subordinated Debt
Securities Indenture; provided, however, that at
the time of such deposit or setting aside, and immediately thereafter, the
foregoing provisions of this Section are complied with.

      

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

      

      Section
12.03. Trustee to Effectuate
Subordination. Each Holder of a Subordinated Debt Security by his
acceptance thereof authorizes and directs the Trustee on his behalf to take such
action as may be necessary or appropriate to effectuate the subordination of the
Subordinated Debt Securities provided in this Article Twelve and appoints the
Trustee his attorney-in-fact for any and all such purposes.

      

      Section
12.04. No Waiver of
Subordination Provisions. No right of any present or future Senior
Creditors to enforce subordination as herein provided shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of the
Company or by any act or failure to act, in good faith, by any such Senior
Creditor or by any noncompliance by the Company with the terms, provisions and
covenants of this Subordinated Debt Securities Indenture, regardless of any
knowledge thereof any such Senior Creditor may have or be otherwise charged
with.

      

      Section
12.05. Notice to
Trustee. Upon the occurrence of any Event of Default or Default, the
Company shall give prompt written notice to the Trustee of any fact known to the
Company which would prohibit the making of any payment when due to or by the
Trustee in respect of the Subordinated Debt Securities of a series.
Notwithstanding the provisions of this Article or any other

       

       

      
        
          
          

        

        
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      provisions
of this Subordinated Debt Securities Indenture but subject to the provisions of
Section 12.01, the Trustee shall not be charged with knowledge of the existence
of any facts which would prohibit the making of any payment when due to or by
the Trustee in respect of such Subordinated Debt Securities unless and until the
Trustee shall have received written notice thereof from the Company or a Senior
Creditor or from any trustee therefor; and, prior to the receipt of any such
written notice by a Responsible Officer of the Trustee, the Trustee, subject to
the provisions of Section 6.01, shall be entitled in all respects to assume that
no such facts exist; provided,
however, that if the Trustee shall not have received the notice provided
for in this Section at least three Business Days prior to the date upon which by
the terms hereof any money may become payable for any purpose (including,
without limitation, the payment of the principal of and any premium and
interest, if any, on any Subordinated Debt Security), then, subject to the
provisions of Section 12.01, the Trustee shall have full power and authority to
receive such money and to apply the same to the purpose for which such money was
received and shall not be affected by any notice to the contrary which may be
received by it within three Business Days prior to such date.

      

      Subject
to the provisions of Section 6.01, the Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a
Senior Creditor or a trustee therefor, to establish that such notice has been
given by a Senior Creditor, or a trustee therefor. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a Senior Creditor to participate in any payment or
distribution pursuant to this Article, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of claims held by such Person, and if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

      

      Section
12.06. Reliance on Judicial
Order or Certificate of Liquidating Agent. Upon any payment or
distribution of assets of the Company referred to in this Article, the
Trustee, subject to the provisions of Section 6.01, the Holders of the
Subordinated Debt Securities of the series shall be entitled to rely upon (a)
any order or decree entered by any court in Scotland (but not elsewhere) in
which such winding-up of the Company or similar case or proceeding, including a
proceeding for the suspension of payments under Scottish law, is pending, or (b)
a certificate of the liquidator of the Company (the “Liquidator”), assignee for the
benefit of creditors, agent or other person making such payment or distribution,
delivered to the Trustee or the Holders of such Subordinated Debt Securities,
for the purpose of ascertaining the Persons entitled to participate in such
payment or distribution, the Senior Creditors and other claims against the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article
12.

       

       

      
        
          
          

        

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

      

      Section
12.08. Rights of Trustee as
Senior Creditor; Preservation of Trustee’s Rights. The Trustee
in its individual capacity shall be entitled to all the rights set forth in
this Article with respect to any claims of Senior Creditors which may at any
time be held by it, to the same extent as any other Senior Creditor, and nothing
in this Subordinated Debt Securities Indenture shall deprive the Trustee of any
of its rights as such holder.

      

      Nothing
in this Article shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.07.

      

      Section
12.09. Article Applicable to
Paying Agents. At all times when a Paying Agent other than the Trustee
shall have been appointed by the Company and be then acting hereunder, the term
“Trustee” as used in
this Article shall in such case (unless the context otherwise requires) be
construed as extending to and including such Paying Agent within its meaning as
fully for all intents and purposes as if such Paying Agent were named in this
Article in addition to or in place of the Trustee; provided, however, that
Section 12.08 shall not apply to the Company or any Affiliate of the Company if
it or such Affiliate acts as Paying Agent.

      

      Section
12.10. Exchanges Not Deemed
Payment. For the purposes of this Article Twelve only, delivery of Dollar
Preference Shares or Exchange Securities upon exchange of Subordinated Debt
Securities in accordance with Article Thirteen, if applicable to a particular
series of Subordinated Debt Securities, shall not be deemed to constitute a
payment or distribution on account of the principal of Subordinated Debt
Securities or on account of the purchase or other acquisition of Subordinated
Debt Securities. Nothing contained in this Article or elsewhere in this
Subordinated Debt Securities Indenture or in the Subordinated Debt Securities is
intended to or shall impair, as among the Company, its creditors and the Holders
of the Subordinated Debt Securities, the right, which if applicable to a
particular series of Subordinated Debt Securities is absolute and unconditional,
of the Company to exchange the Subordinated Debt Securities in accordance with
Article Thirteen.

      

      

      
        
          
          

        

        
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      ARTICLE
13

      EXCHANGE OF SUBORDINATED DEBT SECURITIES

      

      Section
13.01. Applicability of
Article. If specified pursuant to Section 3.01 for Subordinated Debt
Securities of any series, the Subordinated Debt Securities of any series shall
be convertible (conversion being referred to herein as “exchange”) on any Interest
Payment Date as a whole or in part, at the option of the Company, on the basis
of the principal amount of each Subordinated Debt Security, into an equivalent
amount in liquidation preference of the series of Dollar Preference Shares or
Exchange Securities specified pursuant to Section 3.01 and (except as otherwise
specified as contemplated by Section 3.01 for Subordinated Debt Securities of
any series) in accordance with this Article 13.

      

      Section
13.02. Election to Exchange;
Notice to Trustee. An election of the Company to exchange Subordinated
Debt Securities shall be evidenced by an Officer’s Certificate furnished to the
Trustee stating that the Company is entitled to effect such exchange and setting
forth a statement of facts demonstrating the same.

      

      Section
13.03. Notice of
Exchange. Not less than 45 days nor more than 60 days prior to any date
fixed for exchange of Subordinated Debt Securities of a series (the “Exchange Date”), the Company
shall notify the Trustee in writing of its election to exchange the Subordinated
Debt Securities of such series. The Trustee shall within 15 days after receipt
of notice from the Company, but in no event less than 30 days nor more than 60
days prior to the Exchange Date, cause notice of such election to be (i) mailed
to the Holder (if the address of such Holder is known to the Trustee) if the
affected Subordinated Debt Securities are in global form, or (ii) mailed to each
Holder of registered Subordinated Debt Securities of such series to be exchanged
in accordance with Section 1.06.

      

      All
notices of exchange shall state:

      

      
        (a)    the
Exchange Date;

      

      

      (b)    that on
the Exchange Date, the Subordinated Debt Securities to be exchanged will cease
to exist for any purpose on or after such Exchange Date;

      

      (c)    if less
than all the Outstanding Subordinated Debt Securities of any series are to be
exchanged, the identification of the particular Subordinated Debt Securities to
be exchanged, which Subordinated Debt Securities shall be selected by the
Trustee, from the Outstanding Subordinated Debt Securities of such series not
previously called for exchange, by such method as the Trustee shall deem fair
and appropriate and which may provide for the selection for exchange of portions
(equal to the minimum authorized denomination for Subordinated Debt Securities
of that series or any multiple thereof) of the principal amount of
Subordinated

       

       

      
        
          
          

        

        
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      Debt
Securities of such series of a denomination larger than the minimum authorized
denomination for Subordinated Debt Securities of that series;

      

      (d)    the place
or places where such Subordinated Debt Securities are to be surrendered for
exchange; and

      

      (e)     the form
in which the Company will issue the Dollar Preference Shares (if not as a single
share warrant to bearer delivered to the ADR Depositary) or Exchange
Securities.

      

      Notice of
any exchange of Subordinated Debt Securities at the election of the Company
shall be given by the Company or, pursuant to a Company Request by the Trustee,
in the name of and at the expense of the Company.

      

      Section
13.04. Deposit of
Interest. Prior to any Exchange Date, the Company shall deposit with the
Trustee an amount of money sufficient to pay accrued interest, if any, to the
Exchange Date on all Subordinated Debt Securities of such series.

      

      Section
13.05. Surrender of
Subordinated Debt Securities. Any Subordinated Debt Security which is to
be exchanged shall be surrendered at an office or agency of the Company
designated for that purpose pursuant to Section 10.02 not less than 10 days
prior to the Exchange Date (with, only in the case of registered Subordinated
Debt Securities and if the Company or the Trustee so requires, due endorsement
by, or a written instrument of transfer in form satisfactory to the Company and
the Trustee duly executed by, the Holder thereof or his attorney duly authorized
in writing) accompanied by written notice specifying the Persons (a) in the case
of Dollar Preference Shares, to whom ADRs should be issued by the ADR Depositary
or, if the Company has notified the Trustee in accordance with Section 13.03
that it will issue Dollar Preference Shares in definitive form, any direction
the Holder may wish to make as referred to in Section 13.06 or (b) in the case
of Exchange Securities, to whom such Exchange Securities are to be issued. The
Trustee will inform the Company of all such notices and the Company will, if
applicable, direct the ADR Depositary accordingly under the terms of the ADR
Deposit Agreement. Subordinated Debt Securities surrendered for exchange shall,
if surrendered to any Person other than the Trustee, be delivered to the Trustee
for delivery by it to the Company or, if delivered to the Trustee, shall be
delivered by it to the Company.

      

      Section
13.06. Issuance of Dollar
Preference Shares or Exchange Securities. On the Exchange
Date with respect to Global Securities of a series, and on or prior to the
Exchange Date with respect to definitive Subordinated Debt Securities of a
series, in each case surrendered for exchange as provided in Section 13.05, the
Company shall (a) in the case of Dollar Preference Shares, unless the Company
shall have notified the Trustee otherwise in accordance with

       

       

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

      
 

      Section
13.03, deliver or procure the delivery of a single share warrant to bearer to
the ADR Depositary representing all of the Dollar Preference Shares in respect
of which such Subordinated Debt Securities are to be exchanged in accordance
with the provisions of this Article Thirteen or (b) in the case of Securities,
deliver or procure the delivery of the Exchange Securities to the Trustee or to
such other Person as may be specified pursuant to Section 3.01.

      

      In the
event that the Company shall have notified the Trustee in accordance with
Section 13.03 that it will not deliver or procure the delivery of a single share
warrant to bearer in exchange for the Subordinated Debt Securities of a series
surrendered for exchange as provided in Section 13.05, the Company shall, on or
prior to the Exchange Date, with respect to definitive Subordinated Debt
Securities, deliver or procure the delivery of individual certificates
representing the Dollar Preference Shares (or the rights to receive such Dollar
Preference Shares) of such series for which such Subordinated Debt Securities
are to be exchanged in accordance with the provisions of this Article Thirteen,
in the case of Dollar Preference Shares in registered form, to and registered in
the names of the Holders of such Subordinated Debt Securities in definitive form
as they appear on the Subordinated Debt Security Register or, at the direction
of such Holder, in the name of the ADR Custodian for the account and benefit of
the ADR Depositary who will issue ADRs evidencing ADSs representing the Dollar
Preference Shares to such Holder and, in the case of Dollar Preference Shares in
bearer form, to the bearer of the bearer Subordinated Debt Security in
definitive form or, at the direction of such bearer, to the ADR Custodian for
the account and benefit of the ADR Depositary who will issue ADRs evidencing
ADSs representing Dollar Preference Shares to such Holder.

      

      Any
exchange pursuant to this Section 13.06 shall be deemed to have been made
immediately prior to the close of business in New York on the Exchange
Date.

      

      Section
13.07. Effect of
Exchange. Notice of exchange having been given as aforesaid, the
Subordinated Debt Securities so to be exchanged shall on the Exchange Date cease
to exist for any purpose. Upon surrender of any such Subordinated Debt Security
for exchange in accordance with the said notice and this Article Thirteen,
accrued interest, if any, on such Subordinated Debt Security to the Exchange
Date shall be paid by the Company to the Holder surrendering such Subordinated
Debt Security. Such payment shall be a condition to the exchange and no exchange
shall occur unless such payments are made.

      

      On and
after the Exchange Date for Subordinated Debt Securities of a particular series,
each Subordinated Debt Security of the series to be exchanged, until surrendered
shall be deemed to evidence rights to receive Dollar Preference Shares or
Exchange Securities of the relevant series with a liquidation preference
equivalent to the principal amount of such Subordinated Debt Security. Until
a

       

       

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

         

      

      

      Holder
has surrendered such Subordinated Debt Security upon such exchange, such Holder
shall be entitled to receive dividends, payments or other distributions in
respect of such Dollar Preference Shares or Exchange Securities and shall have
the same rights with respect to, and shall be deemed to be the Holder of, such
Dollar Preference Shares or Exchange Securities into which such Subordinated
Debt Security was exchanged as if it had so surrendered such Subordinated Debt
Security.

      

      Section
13.08. Validity of Dollar
Preference Shares or Exchange Securities. The Company will
take all corporate and other action which may be necessary in order that
it may validly and legally issue Dollar Preference Shares or Exchange Securities
upon each exchange of the Outstanding Subordinated Debt Securities. The Company
covenants that the Dollar Preference Shares or Exchange Securities will when
issued upon such exchange be duly authorized and validly issued, fully paid and
not subject to calls for further funds.

      

      Section
13.09. Legal and Regulatory
Compliance. Notwithstanding any provision of this Subordinated Debt
Securities Indenture to the contrary, the right of the Company to cause any
exchange of Subordinated Debt Securities of a series for Dollar Preference
Shares or Exchange Securities on any proposed Exchange Date shall be subject to
the fulfillment of the following conditions with respect to such Subordinated
Debt Securities:

      

      (a)    as of
such Exchange Date, there is no accrued but unpaid interest (including amounts
paid on the Exchange Date);

      

      (b)    as of
such Exchange Date, no Default or Event of Default shall have occurred and be
continuing with respect to the particular series of Subordinated Debt
Securities;

      

      (c)     as of
such Exchange Date, there has not been, in any one instance or in the aggregate,
an adverse effect on the rights, powers, privileges, validity or enforceability
of the Dollar Preference Shares or Exchange Securities;

      

      (d)    the
Dollar Preference Shares to be issued on such Exchange Date shall be duly
authorized and reserved for issuance upon such exchange and, when issued upon
such exchange, will be fully paid and not subject to calls for further
funds;

      

      (e)     no
consents, authorizations, approvals or exemptions, except in each case such as
shall have been obtained, will be required prior to such Exchange Date for the
issuance and delivery of the Dollar Preference Shares or Exchange Securities to
be issued upon such exchange;

       

       

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

      

      

      (f)     the
issuance and delivery of the Dollar Preference Shares or Exchange Securities to
be issued on such Exchange Date shall not violate (x) the Articles of
Association of the Company or (y) any law, rule or regulation applicable to the
Company; and

      

      (g)    there
shall not have occurred any change in law in Scotland or in the jurisdiction of
the governing law of any Exchange Securities, or any amendment of the Articles
of Association of the Company, prior to such Exchange Date, materially and
adversely affecting the rights and privileges attached to the Dollar Preference
Shares or Exchange Securities (including, without limitation, the rights of the
holders thereof in the event of a bankruptcy or other similar proceeding with
respect to the Company) or such holders’ access to the courts of the United
Kingdom and other applicable governmental authorities to enforce such
rights.

      

      Section
13.10. Taxes and
Charges. The issuance or delivery of Dollar Preference Shares or Exchange
Securities upon exchange of Subordinated Debt Securities pursuant to this
Article Thirteen shall be made without charge to the exchanging Holder of
Subordinated Debt Securities for such Dollar Preference Shares or Exchange
Securities or for any tax or other governmental charge (other than income or
capital gains taxes) in respect of the issuance or delivery of such Dollar
Preference Shares or Exchange Securities; provided, however, that the Company
shall not be required to pay any tax or other governmental charge which may be
payable in respect of (i) issuance or delivery of Dollar Preference Shares or
Exchange Securities to any Person who is or is a nominee or agent for a Person
whose business is or includes the provision of clearance services within the
meaning of Section 96 or Section 70 of the Finance Act 1986 or whose business is
or includes issuing depositary receipts within the meaning of Section 93 or
Section 67 of the Finance Act 1986, other than the ADR Depositary or ADR
Custodian, all such Persons (other than the ADR Depositary and the ADR
Custodian) being “Excepted Persons” or (ii) a transfer involved in the issuance
and delivery of any such Dollar Preference Share or Exchange Securities to any
Person other than any Holder (not being an Excepted Person) of the Subordinated
Debt Security to be exchanged, or in the case of Global Securities, the ADR
Depositary or the ADR Custodian, and the Company shall not be required to issue
or deliver or procure the delivery of such Dollar Preference Shares or Exchange
Securities unless and until the Person requesting the issuance or delivery
thereof shall have paid to the Company the amount of such tax or other
governmental charge or shall have established to the satisfaction of the Company
that such tax or other governmental charge has been paid.

      

      Section
13.11. Trustee Not
Liable. The Trustee shall not be accountable with respect to the validity
or value (or the kind or amount) of any Dollar Preference Shares or Exchange
Securities which may be issued or delivered upon the exchange of any
Subordinated Debt Security pursuant to this Article Thirteen, and makes no
representation with respect thereto. The Trustee shall not be

       

       

      
        
          
          

        

        
          81

          
            

          

        

        
          
          

        

         

      

      

      responsible
for any failure of the Company to issue, transfer or deliver or procure the
delivery of any Dollar Preference Shares or Exchange Securities upon the
surrender of any Subordinated Debt Security for the purpose of exchange pursuant
to this Article Thirteen or to comply with any of the covenants of the Company
or conditions contained in this Article Thirteen.

      

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

      

      

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

      

      

      IN
WITNESS WHEREOF, the Company and the Trustee have caused this Subordinated Debt
Securities Indenture to be duly executed, all as of the day and year first above
written.

      

       

      

      

      
        	 	THE
      ROYAL BANK OF SCOTLAND GROUP plc
	 	 	 	 
	 	 	 	 
	 	
                By:

              	
                /s/

              	 
	 	 
      	
                Name:

              	 
	 	 
      	
                Title:

              	 

      

       

      

      
        	 	
                By:

              	
                /s/

              	 
	 	 
      	
                Name:

              	 
	 	 
      	
                Title:

              	 

      

      

       

      
        	 	
                THE
      BANK OF NEW YORK MELLON LONDON
      BRANCH

              	 
	 	 	 	 
	 	 	 	 
	 	
                By:

              	
                /s/

              	 
	 	 
      	
                Name:

              	 
	 	 
      	
                Title:

              	 

      

       

       

      
        
          
          

        

        
          83

          
            

          

        

        
          
          

        

      

      

      

       

      
        	UNITED KINGDOM OF
      GREAT BRITAIN  	)  ss.:
	 	 
	CITY OF EDINBURGH,
      SCOTLAND 	)

      

       

      

      On the
_________ day of ____________ 2009, before me, _____________________________,
Notary Public of the City of Edinburgh, Scotland duly admitted and sworn,
personally came _________________________,
to me known, who, being by me duly sworn, did depose and say that he is
____________________ of THE ROYAL BANK OF SCOTLAND GROUP plc, one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation, and that he signed his name thereto by like
authority.

      

      

      

       

      
        	 	 	 
	 	
                A
      Notary Public of Edinburgh, Scotland. 

                My
      Commission expires with life.

              	 

      

       

       

      84Exhibit
4.3

     

    
      
         
THE ROYAL BANK OF SCOTLAND GROUP PLC

        as
Issuer

      

      

      

      

      TO

      

      

      

      THE BANK OF NEW YORK
MELLON

       acting through its London
Branch

       as
Trustee

      

      

      

      

      FORM
OF INDENTURE

      

      

      

      

      

      

      

      

      

      Capital
Securities

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      THE ROYAL
BANK OF SCOTLAND GROUP plc

      

      Reconciliation
and tie between Trust Indenture Act of 1939, as amended by the Trust Indenture
Reform Act of 1990, and Capital Securities Indenture, dated as of
[                        
].

      

      
        	
                Trust
      Indenture

              	 
      	
                Capital
      Securities

              	 
	
                Act
      Section

              	 
      	
                Indenture Section

              	 
	
                §310
      (a)(1)

              	 
      	
                6.09

              	 
	
                (a)(2)

              	 	
                6.09

              	 
	
                (a)(3)

              	 
      	
                Not
      Applicable

              	 
	
                (a)(4)

              	 
      	
                Not
      Applicable

              	 
	
                (b)

              	 	
                6.08,
      6.10

              	 
	
                (c)

              	 
      	
                Not
      Applicable

              	 
	
                §311(a)

              	 	
                6.13

              	 
	
                (b)

              	 	
                6.13

              	 
	
                (b)(2)

              	 
      	
                7.03(a)

              	 
	 
      	 
      	
                7.03(b)

              	 
	
                (c)

              	 
      	
                Not
      Applicable

              	 
	
                §312(a)

              	 	
                7.01

              	 
	 
      	 
      	
                7.02(a)

              	 
	
                (b)

              	 
      	
                7.02(b)

              	 
	
                (c)

              	 
      	
                7.02(c)

              	 
	
                §313(a)

              	 
      	
                7.03(a)

              	 
	
                (b)

              	 
      	
                7.03(a)

              	 
	
                (c)

              	 
      	
                1.06,
      7.03(a)

              	 
	
                (d)

              	 
      	
                7.03(b)

              	 
	
                §314(a)

              	 	
                7.04

              	 
	
                (b)

              	 
      	
                Not
      Applicable

              	 
	
                (c)(1)

              	 	
                1.02

              	 
	
                (c)(2)

              	 	
                1.02

              	 
	
                (c)(3)

              	 
      	
                Not
      Applicable

              	 
	
                (d)

              	 
      	
                Not
      Applicable

              	 
	
                (e)

              	 	
                1.02

              	 
	
                (f)

              	 
      	
                Not
      Applicable

              	 
	
                §315(a)

              	 	
                6.01

              	 
	
                (b)

              	 	
                6.02

              	 
	 
      	 
      	
                7.03(a)

              	 
	
                (c)

              	 	
                6.01

              	 
	
                (d)

              	 	
                6.01

              	 
	
                (d)(1)

              	 	
                6.01

              	 
	
                (d)(2)

              	 	
                6.01

              	 
	
                (d)(3)

              	 	
                6.01

              	 
	
                (e)

              	 	
                5.14

              	 

      

      
         

        
          
          

        

        
          i

          
            

          

        

        
          
          

      

       

      
         

        
          	
                  §316(a)(1)(A)

                	 	
                  5.02,
      5.12

                	 

        

      

      
        	
                (a)(l)(B)

              	 	
                5.13

              	 
	
                (a)(2)

              	 	
                Not
      Applicable

              	 
	
                (a)(last
      sentence)

              	 	
                1.01

              	 
	
                (b)

              	 	
                5.08

              	 
	
                §317(a)(1)

              	 	
                5.03

              	 
	
                (a)(2)

              	 	
                5.04

              	 
	
                (b)

              	 	
                10.03

              	 
	
                §318(a)

              	 	
                1.07

              	 

      

      

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

       

      

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      

      TABLE
OF CONTENTS

      

      PAGE

      

      ARTICLE
1

      DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

      
        	 
      	 
      
	
                Section
      1.01.  Definitions

              	
                1

              
	
                Section
      1.02.  Compliance
      Certificates and Opinions

              	
                11

              
	
                Section
      1.03.  Form of
      Documents Delivered to Trustee

              	
                11

              
	
                Section
      1.04.  Acts of
      Holders.

              	
                12

              
	
                Section
      1.05.  Notices, Etc. to
      Trustee and Company

              	
                13

              
	
                Section
      1.06.  Notice
      to Holders; Waiver

              	
                13

              
	
                Section
      1.07.  Conflict with
      Trust Indenture Act

              	
                14

              
	
                Section
      1.08.  Effect
      of Headings and Table of Contents

              	
                15

              
	
                Section
      1.09.  Successors and
      Assigns

              	
                15

              
	
                Section
      1.10.  Separability
      Clause

              	
                15

              
	
                Section
      1.11.  Benefits of
      Capital Securities Indenture

              	
                15

              
	
                Section
      1.12.  Governing
      Law

              	
                15

              
	
                Section
      1.13.  Saturdays,
      Sundays and Legal Holidays

              	
                15

              
	
                Section
      1.14.  Appointment of
      Agent for Service

              	
                16

              
	
                Section
      1.15.  Calculation
      Agent

              	
                16

              

      

      

      

      ARTICLE
2

      CAPITAL SECURITY FORMS

      

      
        	
                Section
      2.01.  Forms
      Generally

              	
                17

              
	
                Section
      2.02.  Form of
      Trustee’s Certificate of Authentication

              	
                17

              

      

      

      

      ARTICLE
3

      THE CAPITAL SECURITIES

      

      
        	
                Section
      3.01.  Amount
      Unlimited; Issuable in Series

              	
                18

              
	
                Section
      3.02.  Denominations

              	
                21

              
	
                Section
      3.03.  Execution,
      Authentication, Delivery and Dating

              	
                21

              
	
                Section
      3.04.  Temporary Capital
      Securities

              	
                22

              
	
                Section
      3.05.  Registration,
      Registration of Transfer and Exchange.

              	
                23

              
	
                Section
      3.06.  Mutilated,
      Destroyed, Lost and Stolen Capital Securities

              	
                28

              
	
                Section
      3.07.  Payments; Rights
      Preserved.

              	
                29

              
	
                Section
      3.08.  Persons
      Deemed Owners

              	
                30

              
	
                Section
      3.09.  Cancellation

              	
                31

              
	
                Section
      3.10.  Computation of
      Payments

              	
                31

              
	
                Section
      3.11.  Cusip
      Numbers

              	
                31

              

      

      

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

      ARTICLE
4

      SATISFACTION AND DISCHARGE

      

      
        	
                Section
      4.01.  Satisfaction and
      Discharge of Capital Securities Indenture

              	
                31

              
	
                Section
      4.02.  Application of
      Trust Money

              	
                33

              
	
                Section
      4.03.  Repayment to
      Company

              	
                33

              

      

      

      ARTICLE
5

      REMEDIES

      

      
        	
                Section
      5.01.  Events
      of Default

              	
                33

              
	
                Section
      5.02.  Acceleration of
      Maturity; Rescission and Annulment

              	
                34

              
	
                Section
      5.03.  Defaults;
      Collection of Indebtedness and Suits for Enforcement
      by Trustee.

              	
                
                  35

                

              
	
                Section
      5.04.  Trustee
      May File Proofs of Claim

              	
                36

              
	
                Section
      5.05.  Trustee
      May Enforce Claims Without Possession of Capital Securities

              	
                
                  37

                

              
	
                Section
      5.06.  Application of
      Money Collected

              	
                37

              
	
                Section
      5.07.  Limitation on
      Suits

              	
                38

              
	
                Section
      5.08.  Unconditional
      Right of Holders to Receive Principal, Premium
      and Payments, If Any

              	
                
                  38

                

              
	
                Section
      5.09.  Restoration of
      Rights and Remedies

              	
                39

              
	
                Section
      5.10.  Rights
      and Remedies Cumulative

              	
                39

              
	
                Section
      5.11.  Delay
      or Omission Not Waiver

              	
                39

              
	
                Section
      5.12.  Control
      by Holders

              	
                39

              
	
                Section
      5.13.  Waiver
      of Past Defaults

              	
                40

              
	
                Section
      5.14.  Undertaking for
      Costs

              	
                40

              

      

      

      ARTICLE
6

      THE TRUSTEE

      

      
        	
                Section
      6.01.  Certain
      Duties and Responsibilities

              	
                41

              
	
                Section
      6.02.  Notice
      of Defaults

              	
                41

              
	
                Section
      6.03.  Certain
      Rights of Trustee

              	
                41

              
	
                Section
      6.04.  Not
      Responsible for Recitals or Issuance of Capital
      Securities

              	
                43

              
	
                Section
      6.05.  May
      Hold Capital Securities

              	
                43

              
	
                Section
      6.06.  Money
      Held in Trust

              	
                43

              
	
                Section
      6.07.  Compensation and
      Reimbursement

              	
                43

              
	
                Section
      6.08.  Disqualification;
      Conflicting Interests

              	
                44

              
	
                Section
      6.09.  Corporate Trustee
      Required; Eligibility

              	
                44

              
	
                Section
      6.10.  Resignation and
      Removal; Appointment of Successor.

              	
                45

              
	
                Section
      6.11.  Acceptance of
      Appointment by Successor.

              	
                47

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

              	
                48

              
	
                Section
      6.13.  Preferential
      Collection of Claims

              	
                48

              
	
                Section
      6.14.  Appointment of
      Authenticating Agent

              	
                48

              

      

       

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

       

      ARTICLE
7

      HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

      

      
        	
                Section
      7.01.  Company
      to Furnish Trustee Names and Addresses of Holders

              	
                50

              
	
                Section
      7.02.  Preservation of
      Information; Communication to Holders

              	
                51

              
	
                Section
      7.03.  Reports
      by Trustee

              	
                51

              
	
                Section
      7.04.  Reports
      by Company

              	
                52

              

      

      

      

      ARTICLE
8

      CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

      

      
        	
                Section
      8.01.  Company
      May Consolidate, Etc., Only on Certain Terms

              	
                53

              
	
                Section
      8.02.  Successor
      Corporation Substituted

              	
                53

              
	
                Section
      8.03.  Assumption of
      Obligations

              	
                54

              

      

      

      ARTICLE
9

      SUPPLEMENTAL INDENTURES

      

      
        	
                Section
      9.01.  Supplemental
      Indenture without Consent of Holders

              	
                55

              
	
                Section
      9.02.  Supplemental
      Indentures with Consent of Holders

              	
                56

              
	
                Section
      9.03.  Execution of
      Supplemental Indentures

              	
                58

              
	
                Section
      9.04.  Effect
      of Supplemental Indentures

              	
                58

              
	
                Section
      9.05.  Conformity with
      Trust Indenture Act

              	
                58

              
	
                Section
      9.06.  Reference in
      Capital Securities to Supplemental Indentures

              	
                58

              

      

      

      ARTICLE
10

      COVENANTS

      

      
        	
                Section
      10.01.  Payment of
      Principal, Premium, Payments and Missed Payments

              	
                59

              
	
                Section
      10.02.  Maintenance of
      Office or Agency

              	
                59

              
	
                Section
      10.03.  Money
      for Payments to be Held in Trust

              	
                60

              
	
                Section
      10.04.  Additional
      Amounts

              	
                61

              
	
                Section
      10.05.  Corporate
      Existence

              	
                63

              
	
                Section
      10.06.  Statement as to
      Compliance

              	
                63

              

      

      

      ARTICLE
11

      REDEMPTION OF CAPITAL SECURITIES

      

      
        	
                Section
      11.01.  Applicability of
      Article

              	
                63

              
	
                Section
      11.02.  Election to
      Redeem; Notice to Trustee

              	
                64

              
	
                Section
      11.03.  Selection by
      Trustee of Capital Securities to be Redeemed

              	
                64

              
	
                Section
      11.04.  Notice
      of Redemption

              	
                64

              
	
                Section
      11.05.  Deposit of
      Redemption Price

              	
                65

              
	
                Section
      11.06.  Capital
      Securities Payable on Redemption Date

              	
                65

              

      

      

      
        
          
          

        

        
          v

          
            

          

        

        
          
          

        

      

       

      
        	 
      	 
      
	
                Section
      11.07.  Capital
      Securities Redeemed In Part

              	
                66

              
	
                Section
      11.08.  Optional
      Redemption Due To Changes In Tax Treatment

              	
                66

              

      

      

      ARTICLE
12

      SUBORDINATION OF CAPITAL SECURITIES

      

      
        	
                Section
      12.01.  Capital
      Securities Subordinate to Senior Claims.

              	
                67

              
	
                Section
      12.02.  Provisions Solely
      to Define Relative Rights

              	
                69

              
	
                Section
      12.03.  Trustee to
      Effectuate Subordination

              	
                69

              
	
                Section
      12.04.  No
      Waiver of Subordination Provisions

              	
                69

              
	
                Section
      12.05.  Notice
      to Trustee

              	
                69

              
	
                Section
      12.06.  Reliance on
      Judicial Order or Certificate of Liquidating Agent

              	
                70

              
	
                Section
      12.07.  Trustee Not
      Fiduciary for Senior Creditors

              	
                71

              
	
                Section
      12.08.  Rights
      of Trustee as Senior Creditor; Preservation of Trustee’s
      Rights

              	
                 
      71

              
	
                Section
      12.09.  Article
      Applicable to Paying Agents

              	
                71

              
	
                Section
      12.10.  Exchanges Not
      Deemed Payment

              	
                71

              

      

      

      ARTICLE
13

      EXCHANGE OF CAPITAL SECURITIES

      

      
        	
                Section
      13.01.  Applicability of
      Article

              	
                72

              
	
                Section
      13.02.  Election to
      Exchange; Notice to Trustee

              	
                72

              
	
                Section
      13.03.  Notice
      of Exchange

              	
                72

              
	
                Section
      13.04.  Deposit of
      Payments

              	
                73

              
	
                Section
      13.05.  Surrender of
      Capital Securities

              	
                73

              
	
                Section
      13.06.  Issuance of
      Dollar Preference Shares or Exchange Securities

              	
                73

              
	
                Section
      13.07.  Effect
      of Exchange

              	
                74

              
	
                Section
      13.08.  Validity of
      Dollar Preference Shares or Exchange Securities

              	
                75

              
	
                Section
      13.09.  Legal
      and Regulatory Compliance

              	
                75

              
	
                Section
      13.10.  Taxes
      and Charges

              	
                76

              
	
                Section
      13.11.  Trustee Not
      Liable

              	
                76

              
	 
      	 
      
	
                TESTIMONIUM

              	
                77

              
	
                SIGNATURES
      AND SEALS

              	
                78

              

      

      

      
        
          
          

        

        
          vi

          
            

          

        

        
          
          

        

      

       

      CAPITAL
SECURITIES INDENTURE, dated as of
[                      
] between THE ROYAL BANK OF SCOTLAND GROUP plc, a company incorporated in Great
Britain and registered in Scotland (herein called the “Company”), having its
registered office at 36 St Andrew Square, Edinburgh EH2 2YB, United Kingdom and
THE BANK OF NEW YORK MELLON (previously named The Bank of New York), acting
through its London Branch, a banking corporation duly organized and existing
under the laws of the State of New York as Trustee (herein called the “Trustee”), having its
Corporate Trust Office at One Canada Square, London E14 5AL.

      

      RECITALS
OF THE COMPANY

      

      The
Company has duly authorized the execution and delivery of this Capital
Securities Indenture to provide for the issuance from time to time of its
Capital Securities (herein called the “Capital Securities”), to be
issued in one or more series, represented by one or more Global Securities in
registered or bearer form with or without coupons for payments attached, or
represented by definitive Capital Securities in registered or bearer form with
or without bearer coupons for payments attached, the amount and terms of each
such series to be determined as hereinafter provided.

      

      All
things necessary to make this Capital Securities Indenture a valid and binding
agreement of the Company, in accordance with its terms, have been
done.

      

      NOW,
THEREFORE, THIS CAPITAL SECURITIES INDENTURE WITNESSETH:

      

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

      

      

      ARTICLE
1

      DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

      

      Section
1.01. Definitions. For
all purposes of this Capital Securities Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

      

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

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

      

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

      

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

      

      
        (e)      unless
the context requires, any reference to an “Article” or a “Section” refers to an Article
or Section of this Agreement.

      

      

      Certain
terms, used principally in Articles 6 and 13, are defined in those
Articles.

      

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

      

      “Additional Amounts” shall have
the meaning set forth in Section 10.04, of this Agreement.

      

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

      

      “ADR Deposit Agreement” means
the Deposit Agreement dated as of August 17, 1992, amended and restated as of
February 8, 1999, amended and restated on November 2, 2001, and as may be
further amended from time to time between the Company and The Bank of New York
Mellon (previously named The Bank of New York) and the holders from time to time
of American Depositary Receipts issued thereunder.

      

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

      

      “Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled
by or under direct or indirect common control with such specified Person. For
the purposes of this definition, “control” when used with
respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      the
ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

      

      “Agent Member” means a member
of, or participant in, any Depositary.

      

      “Auditors” means the Auditors
from time to time of the Company or if there shall be joint Auditors of the
Company any one or more of such joint Auditors.

      

      “Authenticating Agent” means
any Person authorized by the Trustee to act on behalf of the Trustee to
authenticate Capital Securities.

      

      “Authorized Newspaper” means a
newspaper in an official language of the country of publication customarily
published at least once a day for at least five days in each calendar week and
of general circulation in the place in connection with which the term is used,
which, in the United Kingdom, will be the Financial Times of London, if
practicable, and which, in the United States, will be the Wall Street Journal, if
practicable and the Luxemburger Wort, if
practicable and for so long as any Capital Securities are listed on the
Luxembourg Stock Exchange, and if it shall be impracticable in the opinion of
the Trustee to make any publication of any notice required hereby in any such
newspaper, shall mean any publication or other notice in lieu thereof which is
made or given with the approval of the Trustee.

      

      “Board of Directors” means
either the board of directors, or any committee of such board duly authorized to
act with respect hereto, of the Company, which board of directors or committee
may, to the extent permitted by applicable law, delegate its
authority.

      

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

      

      “Book-Entry Depositary” means,
with respect to Capital Securities issuable or issued in whole or in part in the
form of one or more Global Securities in bearer form, the Person, if any,
appointed as agent by the Company under the Capital Security Deposit Agreement
dated October 28, 1996 for the purposes of maintaining records in which it shall
record the ownership, transfer and increases and decreases in the principal
amount of certificate less depositary interests in a Global Security (or a
successor Book-Entry Depositary), and if at any time there is more than one such
Person, “Book-Entry
Depositary” as used with respect to the Capital Securities shall mean the
respective Book-Entry Depositary with respect to particular Capital
Securities.

      
 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      “Business Day” means, with
respect to any Place of Payment, except as may otherwise be provided in the form
of Capital Securities of any particular series, each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which banking institutions in that
Place of Payment are authorized or obligated by law or executive order to
close.

      

      “Calculation Agent” means the
Person, if any, authorized by the Company to calculate the interest rate or
other amounts from time to time in relation to any series of Capital
Securities.

      

      “Capital Securities” has the
meaning set forth in the recitals of the Company herein and more particularly
means any series of Capital Securities issued, authenticated and delivered under
this Capital Securities Indenture.

      

      “Capital Securities Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and shall include the terms
and forms of particular series of Capital Securities established pursuant to
Section 3.01.

      

      “Capital Security” means one of
the Capital Securities.

      

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

      

      “Clearstream” means,
Clearstream Banking, société anonyme (formerly Cedelbank), or its nominee or its
or their successor.

      

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

      

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

      

      “Company Request” and “Company Order” mean,
respectively, a written request or order signed in the name of the Company by an
Executive Director or Director or the Secretary or a Deputy or Assistant
Secretary, and delivered to the Trustee.

      

      “Corporate
Trust Office” means the office of the Trustee in which its corporate
trust business is principally administered, located at One Canada Square, London
E14 5AL (Attention: Corporate Trust Office, Facsimile: +44 20 7964
2536).

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

       

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

      

      “Coupon” or “Coupons” means any interest
coupon or coupons, as the case may be, appertaining to any Capital
Securities.

      

      “Default” has the meaning
specified in Section 5.03.

      

      “Depositary” means, with
respect to Capital Securities of any series issuable or issued in whole or in
part in the form of one or more Global Securities in registered form, a clearing
agency that is designated to act as Depositary for such Global Securities as
contemplated by Section 3.01.

      

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

      

      “Dollar Preference Shares”
means a designated series of non-cumulative dollar preference shares, nominal
value of $.01 each, of the Company for which, if applicable to a particular
series of Capital Securities, the Company may exchange or convert any series of
Capital Securities.

      

      “DTC” means The Depository
Trust Company or its nominee or its or their successor.

      

      “euro” or “€” means the single currency
of the participating member states in the Third Stage of European economic and
monetary union pursuant to the Treaty establishing the European Community (as
amended from time to time). “Participating member states”
means those member states of the European Union from time to time which adopt a
single, shared currency in the Third Stage, as defined and identified in the EMU
legislation.

      

      “Euroclear” means, the
Euroclear Bank, as operator of the Euroclear System, or its nominee, or its or
their successor.

      

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

      

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

      

      “Exchange Date”, when used with
respect to any applicable series of Capital Securities, has the meaning
specified in Section 13.03.

      
 

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      “Exchange Securities” has the
meaning specified in Section 3.01(l).

      

      “Foreign Currency” means the
euro or any currency issued by the government of any country (or a group of
counties or participating member states) other than the United States of America
which as at the time of payment is legal tender for the payment of public and
private debts.

      

      “Foreign Government Securities”
means with respect to Capital Securities and Coupons, if any, of any series that
are denominated in a Foreign Currency, non-callable (i) direct obligations of
the participating member state or government that issued such Foreign Currency
for the payment of which obligations its full faith and credit is pledged or
(ii) obligations of a Person controlled or supervised by and acting as an agency
or instrumentality of such participating member state or government, the payment
of which obligations is unconditionally guaranteed as a full faith and credit
obligation of such participating member state or government. For the avoidance
of doubt, for all purposes hereof, euro shall be deemed to have been issued by
each participating member state from time to time.

      

      “Global Security” means (i)
with respect to Capital Securities issued in bearer form, a global security in
bearer form evidencing all or a part of a series of Capital Securities without
coupons for payments attached, authenticated and delivered to the Holder for
such series or such portion of such series, or any other Holder and, (ii) with
respect to Capital Securities issued in registered form, a global certificate
evidencing all or part of a series of Capital Securities, authenticated and
delivered to the Holder and registered in the name of the Holder or its
nominee.

      

      “Holder” means a Person who
shall at the time be the bearer of any bearer Capital Security in global or
definitive form or in whose name a registered Capital Security in global or
definitive form is registered in the Capital Security Register.

      

      “Indenture” means this
instrument as originally executed or as it may from time to time be supplemented
or amended by one or more indentures supplemental hereto entered into pursuant
to the applicable provisions hereof and shall include the terms and forms of
particular series of Capital Securities established pursuant to Section
3.01.

      

      “Liquidator” has the meaning
specified in Section 12.06.

      

      “Maturity”, when used with
respect to any Capital Security, means the date, if any, on which the principal
of such Capital Security becomes due and payable as therein or herein provided,
whether by call for redemption, winding-up of the Company or
otherwise.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

      

      

      “Missed Payment” has the
meaning specified in Section 3.07(d).

      

      “Officer’s Certificate” means a
certificate delivered to the Trustee and signed by an Executive Director or an
Assistant Director or the Secretary or a Deputy or Assistant Secretary of the
Company.

      

      “Opinion of Counsel” means a
written opinion of legal advisors, who may be an employee of or legal advisors
for the Company or other legal advisors.

      

      “Outstanding”, when used with
respect to Capital Securities or any series of Capital Securities means, as of
the date of determination, all Capital Securities or all Capital Securities of
such series, as the case may be, theretofore authenticated and delivered under
this Capital Securities Indenture, except:

      

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

      

      (ii)    Capital
Securities, or portions thereof, for whose payment or redemption money, U.S.
Government Obligations or Foreign Government Securities in the necessary amount
have been theretofore deposited with the Trustee or any Paying Agent (other than
the Company) in trust or set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent) for the Holders of such Capital
Securities; provided,
that, if such Capital Securities are to be redeemed, notice of such redemption
has been duly given pursuant to this Capital Securities Indenture or provision
therefor satisfactory to the Trustee has been made; and

      

      
        (iii)     Capital
Securities which have been paid pursuant to Section 11.6 or in
exchange for or in lieu of which other Capital Securities have been
authenticated and delivered pursuant to this Capital Securities Indenture, other
than any such Capital Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Capital Securities
are held by a bona fide purchaser in whose hands such Capital Securities are
valid obligations of the Company;

      

      

      provided, however, that in
determining whether the Holders of the requisite principal amount of the
Outstanding Capital Securities of any series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (i) the principal
amount of a Capital Security denominated in a Foreign Currency shall be the
Dollar equivalent, determined on the date of original issuance of such Capital
Security, of the principal amount of such Capital Security; and (ii) Capital
Securities beneficially owned by the Company or any other obligor upon the
Capital Securities or any Affiliate of the Company or of such other obligor
shall be disregarded and deemed not to be Outstanding except that, in
determining

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

      whether
the Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Capital Securities
which a Responsible Officer of the Trustee actually knows to be so beneficially
owned shall be so disregarded; provided, further, however, that Capital
Securities so beneficially owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Capital Securities
and that the pledgee is not the Company or any other obligor upon the Capital
Securities or any Affiliate of the Company or of such other
obligor.

      

      “Paying Agent” means any Person
(which may include the Company) authorized by the Company to pay the principal
of (and premium, if any) and Payments (including Missed Payments, if any) on any
Capital Securities on behalf of the Company.

      

      “Payment” means, unless
otherwise provided by Section 3.01 hereof, a payment made to Holders at a rate
per annum of the principal amount of the Capital Securities of a series as
determined by the Company and set forth in such Capital Securities or
determinable pursuant to the terms of such Capital Securities.

      

      “Payment Date”, when used with
respect to any Capital Security, means the date for payment of any Payment on
such Capital Security, as determined by the Company and set forth in such
Capital Security.

      

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

      

      “Payment Period”, when used
with respect to any series of Capital Securities, means the period beginning on
the date of issue of the series of Capital Securities up to (but excluding) the
first Payment Date and each successive period from (and including) a Payment
Date up to (but excluding) the next succeeding Payment Date.

      

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

      

      “Place of Payment”, when used
with respect to the Capital Securities of any series, means the place or places
where the principal of (and premium, if any) Payments and Missed Payments, if
any, on the Capital Securities of that series are payable as specified pursuant
to Section 3.01 or, if not so specified, as specified in Section
10.02.

      

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

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

      

      

      definition,
any Capital Security authenticated and delivered under Section 3.06 in exchange
for or in lieu of a mutilated, destroyed, lost or stolen Capital Security shall
be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen
Capital Security.

      

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

      

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

      

      “Regular Record Date” for the
Payment payable on any Payment Date on registered Capital Securities of any
series means the date specified for the purpose pursuant to Section
3.01.

      

      “Responsible Officer”, when
used with respect to the Trustee, means any officer of the Trustee assigned to
or working in the corporate trust department of the Trustee or, with respect to
a particular corporate trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

      

      “Securities Act” means the
United States Securities Act of 1933, as amended.

      

      “Senior Claims” in respect of
any series of capital securities means (i) all claims of unsubordinated
creditors of the Company admitted in the winding-up, (ii) all claims of
creditors of the Company in respect of liabilities of the Company that are, or
are expressed to be, subordinated (whether only in the event of the winding-up
of the Company or otherwise) to the claims of unsubordinated creditors of the
Company but not further or otherwise, (iii) all other claims except those which
rank, or are expressed to rank, equally with or junior to the claims of Holders
of any series of Capital Securities and (iv) any other Senior Claims provided
with respect to Capital Securities of such series pursuant to Section
3.01.

      

      “Senior Creditors” means the
creditors of the Company holding the Senior Claims.

      

      “Solvency Condition” means
that, at the relevant time, the Company is solvent by virtue of (a) it being
able to pay its debts as they fall due, and (b) the total non-consolidated
assets of the Company exceed the Company’s total non- consolidated liabilities
other than liabilities that do not constitute Senior Claims.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      The
determination of whether the Solvency Condition has been satisfied shall be made
in accordance with Section 12.01(b).

      

      “Subsidiary” has the meaning
attributed thereto by Section 7.36 of the Companies Act 1985 of Great Britain as
in force at the date as of which this instrument was executed.

      

      “successor entity” has the
meaning specified in Section 8.03.

      

      “Taxing Jurisdiction” has the
meaning specified in Section 10.04.

      

      “Trustee” means the Person
named as the “Trustee”
in the first paragraph of this instrument until a successor trustee shall have
become such pursuant to the applicable provisions of this Capital Securities
Indenture, and thereafter “Trustee” shall mean the Person
who is then the Trustee hereunder, and if at any time there is more than one
such Person, “Trustee”
shall mean and include each such Person; and “Trustee” as used with respect
to the Capital Securities of any series shall mean the Trustee with respect to
the Capital Securities of such series.

      

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

      

      “United Kingdom” means the
United Kingdom of Great Britain and Northern Ireland.

      

      “United States” and “U.S.” mean the United States
of America and, except in the case of Sections 6.09 and 6.14, its territories
and possessions.

      

      “U.S. Government Obligations”
means noncallable (i) direct obligations of the United States of America for
which its full faith and credit are pledged and/or (ii) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States, the payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States, and shall also include a
depository receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act of 1933, as amended) as custodian with respect to any such U.S.
Government Obligation or a specific payment of principal of or interest on any
such U.S. Government Obligation held by such custodian for the account of the
holder of such depository receipt, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of principal of or interest on the U.S. Government Obligation evidenced by such
depository receipt.

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

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

      

      Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Capital Securities Indenture shall include:

      

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

      

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

      

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

      

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

      

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

      

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

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

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

      

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

      

      Section
1.04.  Acts of
Holders.

      

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

      

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

      

      
        (c)     The
ownership of registered Capital Securities shall be proved by the
Capital Security Register.

      

      

      (d)     The ownership
of a bearer Capital Security or Coupon, and the principal amount and serial
number of such Capital Security or Coupon and the date of holding the same, may
be proved by the production of such Capital

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      

      Security
or Coupon or by a certificate executed by any trust company, bank, banker or
securities dealer satisfactory to the Trustee if such certificate shall be
deemed by the Trustee to be satisfactory. Each such certificate shall be dated
and shall state that on the date thereof a bearer Capital Security or Coupon of
a particular series of a specified principal amount and bearing a specified
serial number was deposited with or exhibited to such trust company, bank,
banker or securities dealer by the Person named in such certificate. Any such
certificate may be issued in respect of one or more Capital Securities or
Coupons specified therein. The holding by the Person named in any such
certificate of any Capital Security or Coupons specified therein shall be
presumed to continue for a period of one year from the date of such certificate
unless at the time of any determination of such holding (1) another certificate
bearing the same or a later date issued in respect of the same Capital Security
or Coupon shall be produced, or (2) the Capital Security or Coupon specified in
such certificate shall be produced by some other Person, or (3) the Capital
Security or Coupon specified in such certificate shall have ceased to be
Outstanding.

      

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

      

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

      

      (a)     the
Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if made, given, furnished
or filed in writing (which may be via facsimile) to the Trustee at its Corporate
Trust Office, or

      

      (b)     the
Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed,
in the case of the Company, first-class postage prepaid, addressed to it at the
address of its principal office specified in the first paragraph of this Capital
Securities Indenture (unless another address has been previously furnished in
writing to the Trustee by the Company, in which case at the last such address)
marked “Attention: Company Secretary”.

      

      Section
1.06. Notice to Holders;
Waiver. When this Capital Securities Indenture provides for notice to
Holders of any event, such notice shall be

      

      
        
          
          

        

        
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      sufficiently
given (unless otherwise herein expressly provided) with respect to Global
Securities in bearer form, if in writing and delivered or mailed and received,
first-class postage prepaid, to the Holder affected by such event, at the
address previously furnished in writing by the Holder to the Trustee and the
Company and (i) if Outstanding bearer definitive Capital Securities are affected
by such event, published at least once in an Authorized Newspaper in the Borough
of Manhattan, The City of New York, and (ii) if Outstanding registered Capital
Securities are affected, if given in writing and mailed, first-class postage
prepaid, to each Holder of a registered Capital Security affected by such event
in the manner and to the extent provided in Section 313(c) of the Trust
Indenture Act with respect to reports pursuant to Section 7.03(a).

      

      Any
notice published pursuant to clause (i) of the preceding paragraph shall be
deemed to have been given on the date of such publication or, if published more
than once, on the date of the first publication. If publication is not
practicable, notice will be valid if given in such other manner, and shall be
deemed to have been given on such date, as the Company shall determine. For so
long as the Capital Securities of any series are represented by Global
Securities, the Company will deliver a copy of all notices with respect to such
series to the Holder (if the address of such Holder is known to the
Company).

      

      When
notice to Holders of registered Capital Securities is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Capital Securities Indenture provides for notice in
any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver. In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification
for every purpose hereunder.

      

      Section
1.07. Conflict with Trust
Indenture Act. If any provision hereof limits, qualifies or conflicts
with another provision hereof which is required to be included in this Capital
Securities Indenture by any of the provisions of the Trust Indenture Act, such
required provision shall control. If at any future time any provision required
to be included herein by the Trust Indenture Act as in force at the date as of
which this Capital Securities Indenture was executed or any limitation imposed
by the Trust Indenture Act at such date on any provision otherwise included
herein would not be so required or imposed (in whole or in part) if this Capital
Securities Indenture were executed at such future time, the Company and the
Trustee may enter into one or more indentures supplemental

      

      
        
          
          

        

        
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      hereto
pursuant to Section 9.01 to change or eliminate (in whole or in part) such
provision or limitation of this Capital Securities Indenture in conformity with
the requirements of the Trust Indenture Act as then in force, except that
(subject to Article 9) no provision or limitation required to be included herein
by Sections 310(a)(1) and (a)(2), 315(a), (c), (d)(l), (d)(2), (d)(3) and (e),
316(a)(1)(A), (a)(l)(B), (a)(2), (a) (last sentence) and (b) of the Trust
Indenture Act as in force at the date as of which this Capital Securities
Indenture was executed may be so changed or eliminated.

      

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

      

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

      

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

      

      Section
1.11. Benefits of Capital
Securities Indenture. Nothing in this Capital Securities Indenture or in
the Capital Securities or the Coupons, express or implied, shall give to any
Person, other than the parties hereto and their successors hereunder, and the
Holders of Capital Securities or the holders of Coupons, any benefit or any
legal or equitable right, remedy or claim under this Capital Securities
Indenture.

      

      Section
1.12. Governing Law.
This Capital Securities Indenture and the Capital Securities and the Coupons, if
any, shall be governed by and construed in accordance with the laws of the State
of New York, except as stated in Section 2.01 and except for Section 12.01 which
shall be governed by and construed in accordance with the laws of Scotland, and
except that the authorization and execution of this Capital Securities
Indenture, the Capital Securities and the Coupons shall be governed by (in
addition to the laws of the State of New York relevant to execution) the
respective jurisdictions of organization of the Company and the Trustee, as the
case may be.

      

      Section
1.13. Saturdays, Sundays and
Legal Holidays. The terms of the Capital Securities (and Coupons, if any)
shall provide that, in any case where any Payment Date, Redemption Date or
Exchange Date of a Capital Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Capital Securities
Indenture or the Capital Securities or Coupons other than a provision in the
Capital Securities or Coupons that specifically states

      

      
        
          
          

        

        
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      that such
provision shall apply in lieu of this Section) Payments and Missed Payments, if
any (and premium, if any) or principal and the exchange of the Capital Security
need not be made at such Place of Payment on such date, but may be made on the
next succeeding Business Day at such Place of Payment (or such other Business
Day as shall be provided in such Capital Security or Coupon) with the same force
and effect as if made on such Payment Date, Redemption Date or Exchange Date,
provided that no Payment shall accrue for the period from and after such Payment
Date, Redemption Date or Exchange Date, as the case may be.

      

      Section
1.14. Appointment of Agent for
Service. The Company has designated and appointed John Fawcett, Chief
Financial Officer, Citizens Financial Group, Inc., 600 Washington Boulevard,
Stamford, Connecticut, 06901, as its authorized agent upon which process may be
served in any suit or proceeding in any Federal or State court in the Borough of
Manhattan, The City of New York arising out of or relating to the Capital
Securities, the Coupons or this Capital Securities Indenture, but for that
purpose only, and agrees that service of process upon said John Fawcett shall be
deemed in every respect effective service of process upon it in any such suit or
proceeding in any Federal or State court in the Borough of Manhattan, The City
of New York, New York. Such appointment shall be irrevocable so long as any of
the Capital Securities remain Outstanding until the appointment of a successor
by the Company and such successor’s acceptance of such appointment. Upon such
acceptance, the Company shall notify the Trustee of the name and address of such
successor. The Company further agrees to take any and all action, including the
execution and filing of any and all such documents and instruments, as may be
necessary to continue such designation and appointment of said John Fawcett in
full force and effect so long as any of the Capital Securities shall be
Outstanding. The Trustee shall not be obligated and shall have no responsibility
with respect to any failure by the Company to take any such action. The Company
hereby submits (for the purposes of any such suit or proceeding) to the
jurisdiction of any such court in which any such suit or proceeding is so
instituted, and waives, to the extent it may effectively do so, any objection it
may have now or hereafter to the laying of the venue of any such suit or
proceeding.

      

      Section
1.15. Calculation
Agent. If the Company appoints a Calculation Agent pursuant to Section
3.01 with respect to any series of Capital Securities, any determination of the
interest rate on, or other amounts in relation to, such series of Capital
Securities in accordance with the terms of such series of Capital Securities by
such Calculation Agent shall (in the absence of manifest error, bad faith or
willful misconduct) be binding on the Company, the Trustee and all Holders and
(in the absence of manifest error, bad faith or willful misconduct) no liability
to the Holders shall attach to the Calculation Agent in connection with the
exercise or non-exercise by it of its powers, duties and discretions.

      
        
          
          

        

        
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      ARTICLE
2

      CAPITAL SECURITY FORMS

      

      Section
2.01. Forms Generally.
The Capital Securities of each series and the Coupons, if any, to be attached
thereto shall be in such forms as shall be established by or pursuant to action
of the Company’s Board of Directors, or in one or more indentures supplemental
hereto, pursuant to Section 9.01, in each case with such insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with any applicable law or rule or regulation made pursuant thereto or with the
rules of any securities exchange or Depositary therefor, or as may, consistently
herewith, be determined by the officers executing such Capital Securities and
Coupons, all as evidenced by any such execution; provided, however, that such Capital
Securities and Coupons shall have endorsed thereon a statement in
the following form or in substantially the following form:

      

      “The
rights of the holder of the Capital Security/Coupon are, to the extent and in
the manner set forth in Section 12.01 of the Capital Securities Indenture,
subordinated to the claims of other creditors of the Company, and this Capital
Security/Coupon is issued subject to the provisions of that Section 12.01, and
the holder of this Capital Security/Coupon, by accepting the same, agrees to and
shall be bound by such provisions. The provisions of Section 12.01 of the
Capital Securities Indenture and the terms of this paragraph are governed by,
and shall be construed in accordance with, the laws of Scotland.”

      

      The
Trustee’s certificates of authentication shall be in substantially the form set
forth in Section 2.02 or Section 6.14.

      

      The
definitive Capital Securities and Coupons shall be printed, lithographed or
engraved or produced by any combination of these methods or may be produced in
any other manner permitted by the rules of any securities exchange on which the
Capital Securities may be listed, all as determined by the officers executing
such Capital Securities, as evidenced by their execution thereof.

      

      Section
2.02. Form of Trustee’s
Certificate of Authentication. The Trustee’s certificate of
authentication shall be in substantially the following form:

      

      

      
        
          
          

        

        
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      CERTIFICATE
OF AUTHENTICATION

      

      This is
one of the Capital Securities of the series designated herein referred to in the
within-mentioned Capital Securities Indenture.

       

      
        
          	 	Dated:	 	 
	 	 	 
	 	
                  THE
      BANK OF NEW YORK

                  MELLON,
      LONDON BRANCH

                  as
      Trustee

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 	 
	 	 	Authorized
      Signatory	 

        

      

       

      

      

      ARTICLE
3

      THE CAPITAL SECURITIES

      

      Section
3.01. Amount Unlimited;
Issuable in Series. The aggregate principal amount of Capital Securities
which may be authenticated and delivered under this Capital Securities Indenture
is unlimited. The Capital Securities may be issued in one or more
series.

      

      There
shall be established by or pursuant to action of the Board of Directors of the
Company or established in one or more indentures supplemental hereto, prior to
the initial issuance of Capital Securities of any series,

      

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

      

      (b)     any limit
upon the aggregate principal amount of the Capital Securities of the series
which may be authenticated and delivered under this Capital Securities Indenture
(except for Capital Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Capital Securities of the
series pursuant to Section 3.04, 3.05, 3.06, 9.06 or 11.07);

      

      (c)     the date
or dates, if any, on which the principal of (and premium, if any, on) the
Capital Securities of the series is payable;

      

      (d)     the rate
or rates, if any, at which Payments on the Capital Securities of the series
shall accrue or the manner of calculation of such rate or rates, if any, the
issue date with respect to Capital Securities in bearer form, the date or dates
from which such Payments shall accrue, the Payment Dates on which
such

      

      
        
          
          

        

        
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      Payments
shall be payable or the manner of determination of such Payment Dates and, in
the case of registered Capital Securities, the Regular Record Date for the
interest payable on any Payment Date and any dates required to be established
pursuant to Section 7.01;

      

      (e)     whether
any premium, upon redemption or otherwise, shall be payable by the Company on
Capital Securities of the series;

      

      (f)     the place
or places where the principal of (and premium, if any) and any Payments or
Missed Payments on Capital Securities of the series shall be payable, and the
Paying Agent or Paying Agents who shall be authorized to pay principal of (and
premium, if any) and any Payments or Missed Payments on Capital Securities of
such series, at least one of such Paying Agents having an office or agency in
the Borough of Manhattan, The City of New York (and none shall have any office
or agency in the United Kingdom in the case of Payments on bearer Capital
Securities);

      

      (g)     other
than with respect to any redemption of the Capital Securities pursuant to
Section 11.08, whether or not such series of Capital Securities are to be
redeemable, in whole or in part, at the Company’s option and, if so redeemable,
the period or periods within which, the price or prices at which and the terms
and conditions upon which, Capital Securities of the series may be redeemed,
including the date referred to in Section 11.08;

      

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

      

      (i)     if other
than denominations of $25 and any multiple thereof, the denominations in which
Capital Securities of the series in each applicable form shall be issuable and
any provisions relating to redenomination of any Capital
Securities;

      

      (j)     if other
than the principal amount thereof, the portion, or the manner of calculation of
such portion, of the principal amount of Capital Securities of the series which
shall be payable upon a declaration of acceleration or acceleration of the
Maturity thereof pursuant to Section 5.02, upon redemption of Capital Securities
of any series which are redeemable before their stated Maturity, or which the
Trustee shall be entitled to file and prove a claim pursuant to Section
5.04;

      

      
        
          
          

        

        
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        (k)     if
Additional Amounts, pursuant to Section 10.04, will not be payable;

      

      

      (l)     whether
the Capital Securities of any series shall be exchangeable at the option of the
Company into Dollar Preference Shares or other securities of the Company (“Exchange Securities”) pursuant
to Article 13 and if so the terms of the Dollar Preference Shares or the nature
and terms of the Exchange Securities into which such Capital Securities are
exchangeable and any additional or other provisions relating to such
exchange;

      

      (m)    if other
than Dollars, provisions, if any, for the Capital Securities of the series to be
denominated, and payments thereon to be made, in Foreign Currencies and
specifying the manner and place of payment thereon and any other terms with
respect thereto;

      

      (n)     if other
than the coin or currency in which the Capital Securities of that series are
denominated, the coin or currency in which payment of the principal of and
premium and Payments and Missed Payments, if any, on the Capital Securities of
such series shall be payable;

      

      (o)     if the
principal of and premium and Payments and Missed Payments, if any, on the
Capital Securities of such series are to be payable, at the election of the
Company or a Holder thereof, in a coin or currency other than that in which the
Capital Securities are denominated, the period or periods within which, and the
terms and conditions upon which, such election may be made;

      

      (p)     whether
the Capital Securities of the series shall be issued in whole or in part in the
form of one or more Global Securities and the initial Holder with respect to
such Global Security or Capital Securities;

      

      (q)     if the
Capital Securities of such series are to be issuable in definitive form (whether
upon original issue or upon exchange of a temporary Capital Security of such
series or otherwise) only upon receipt of certain certificates or other
documents or satisfaction of other conditions, then the form and terms of such
certificates, documents or conditions;

      

      (r)     if the
amounts of payments of principal of (and premium, if any) or Payments or Missed
Payments, if any, on the Capital Securities of the series may be determined with
reference to an index or are otherwise not fixed on the original issue date
thereof, the manner in which such amounts shall be determined and the
Calculation Agent, if any, who shall be appointed and authorized to calculate
such amounts;

      

      (s)     any other
Events of Default, Defaults or covenants with respect to the Capital Securities
of such series;

      

      
        
          
          

        

        
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      (t)     the forms
of Capital Securities of the series and any Coupons appertaining thereto;
and

      

      (u)     any other
terms of the series (which terms shall not be inconsistent with the provisions
of this Capital Securities Indenture).

      

      All
Capital Securities of any one series shall be substantially identical except as
to denomination and the fact that Capital Securities of any one series may be
issuable in both bearer and registered form and except as may otherwise be
provided in or pursuant to such action or in any such indenture supplemental
hereto.

      

      If the
forms of Capital Securities of any series and any Coupons to be attached
thereto, or any of the terms thereof, are established by action taken by the
Board of Directors of the Company, copies of the Board Resolutions in respect
thereof shall be delivered to the Trustee at or prior to the delivery of the
Company Order pursuant to Section 3.03 for the authentication and delivery of
such Capital Securities.

      

      Section
3.02. Denominations.
The Capital Securities of each series shall be issuable in such denominations as
shall be specified as contemplated by Section 3.01. In the absence of any such
specification with respect to Capital Securities of any series, the Capital
Securities of each series shall be issuable in denominations of $25 each and any
integral multiple thereof. Unless otherwise specified in accordance with Section
3.01, any Global Security issued and delivered to the Holder shall be issued in
the form of units with each $25 principal amount of such Global Security
constituting one unit.

      

      Section
3.03. Execution,
Authentication, Delivery and Dating. The Capital Securities and any
Coupon shall be executed on behalf of the Company by any two Directors or by one
Director and Secretary to the Company. The signature of any of these officers on
the Capital Securities may be manual or facsimile. Capital Securities or Coupons
bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Company shall bind the Company, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Capital Securities or Coupons, provided such
officer was the holder of such office at the date of this Capital Securities
Indenture.

      

      At any
time and from time to time after the execution and delivery of this Capital
Securities Indenture, the Company may deliver Capital Securities of any series
executed by the Company and, in the case of bearer Capital Securities other than
a Global Security, having attached thereto appropriate Coupons, if any, to the
Trustee for authentication, together with a Company Order for the authentication
and delivery of such Capital Securities, and the Trustee in accordance with
the

      

      
        
          
          

        

        
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      Company
Order shall authenticate and deliver such Capital Securities. In authenticating
such Capital Securities and accepting the additional responsibilities under this
Capital Securities Indenture in relation to such Capital Securities the Trustee
shall be entitled to receive, and (subject to Section 6.01) shall be fully
protected in relying upon, an Opinion of Counsel stating that the form and terms
thereof have been established in conformity with the provisions of this Capital
Securities Indenture.

      

      The
Trustee shall not be required to authenticate such Capital Securities if the
issue of such Capital Securities pursuant to this Capital Securities Indenture
will affect the Trustee’s own rights, duties or immunities under the Capital
Securities or any Coupons and this Capital Securities Indenture or otherwise in
a manner which is not reasonably acceptable to the Trustee.

      

      Each
registered Capital Security shall be dated the date of its
authentication.

      

      Each
bearer Capital Security shall be dated the date specified pursuant to Section
3.01.

      

      No
Capital Security or Coupon appertaining thereto shall be entitled to any benefit
under this Capital Securities Indenture or be valid or obligatory for any
purpose unless there appears on such Capital Security a certificate of
authentication substantially in the form provided for herein executed by or on
behalf of the Trustee by manual signature, and such certificate upon any Capital
Security shall be conclusive evidence, and the only evidence, that such Capital
Security has been duly authenticated and delivered hereunder and that such
Capital Security or Coupon is entitled to the benefits of this Capital
Securities Indenture.

      

      The
Trustee shall not authenticate or deliver any bearer Capital Securities until
any matured Coupons appertaining thereto shall have been detached and cancelled,
except as otherwise provided in Section 3.04 or 3.05 or as permitted in Section
3.06.

      

      Section
3.04. Temporary Capital
Securities. Pending the preparation of definitive Capital Securities of
any series, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Capital Securities substantially of the
tenor of the definitive Capital Securities in lieu of which they are issued,
which Capital Securities may be printed, lithographed, typewritten, photocopied
or otherwise produced. Temporary Capital Securities may be issued as bearer
Capital Securities with or without Coupons attached thereto or as registered
Capital Securities in any authorized denomination, and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Capital Securities may determine, all as evidenced by such
execution.

       

       

      
        
          
          

        

        
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      If
temporary Capital Securities of any series are issued, the Company will cause,
if so required by the terms of such temporary Capital Securities, definitive
Capital Securities of such series to be prepared without unreasonable delay.
After the preparation of definitive Capital Securities of such series, the
temporary Capital Securities of such series shall be exchangeable for definitive
Capital Securities of such series containing identical terms and provisions upon
surrender of the temporary Capital Securities of such series (including any and
all unmatured Coupons or matured Coupons in default attached thereto) at the
office or agency of the Company in a Place of Payment for that series, without
charge to the Holder. Upon surrender for cancellation of any one or more
temporary Capital Securities of any series the Company shall execute, and the
Trustee shall authenticate and deliver in exchange therefor, a like aggregate
principal amount of definitive Capital Securities of the same series of
authorized denominations containing identical terms and provisions and, in the
case of bearer Capital Securities, having attached thereto any appropriate
Coupons. Until so exchanged, unless otherwise provided therein or in a
supplemental indenture relating thereto, the temporary Capital Securities of any
series shall in all respects be entitled to the same benefits (but shall be
subject to all the limitations of rights) under this Capital Securities
Indenture as definitive Capital Securities of such series.

      

      The
provisions of this Section 3.04 are subject to any restrictions or limitations
on the issue and delivery of temporary bearer Capital Securities of any series
that may be established pursuant to Section 3.01 (including any provision that
bearer Capital Securities of such series initially be issued in the form of a
Global Security to be delivered to a depositary of the Company located outside
the United States of America and the procedures pursuant to which definitive
bearer Capital Securities of such series would be issued in exchange for such
Global Security).

      

      Section
3.05.  Registration,
Registration of Transfer and Exchange.

      

      (a)     Global
Securities. This Section 3.05(a) shall apply to Global Securities unless
otherwise specified, as contemplated by Section 3.01.

      

      Except as
otherwise specified as contemplated by Section 3.01 hereof, the Capital
Securities shall be initially issued and represented by one or more Global
Securities in registered form, without Coupons attached thereto, which shall be
authenticated as contemplated by this Indenture.

      

      Each
Global Security in registered form authenticated under this Indenture shall be
registered in the name of the Depositary designated for such Global Security or
a nominee thereof and delivered to such Depositary or a nominee

      
        
          
          

        

        
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      thereof
or custodian therefor, and each such Global Security shall constitute a single
Capital Security for all purposes of this Indenture. Except as otherwise
specified as contemplated by Section 3.01 hereof, each Global Security in
registered form authenticated under this Indenture shall be initially registered
in the name of DTC only.

      

      With
respect to Global Securities in registered form, unless the Global Security is
presented by an authorized representative of the Holder to the Company or its
agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of a nominee of the Holder and any payment is
made to such nominee, any transfer, pledge or other use of the Global Security
in registered form for value or otherwise shall be wrongful since the registered
owner of such Global Security, the nominee of the Holder, has an interest in
such Global Security.

      

      Except as
otherwise specified as contemplated by Section 3.01 hereof, any Global Security
shall be exchangeable for definitive Capital Securities only as provided in this
paragraph. A Global Security shall be exchangeable pursuant to this Section only
(i) if the relevant Depositary or Book-Entry Depositary, if any, notifies the
Company that it is unwilling or unable to continue to act as Depositary or
Book-Entry Depositary, as applicable, or the relevant Depositary or Book-Entry
Depositary ceases to be a clearing agency registered under the Exchange Act and
a successor depositary is not appointed by the Company within 120 days of such
notification, (ii) if, in the event of a winding-up of the Company, the Company
fails to make a payment on the Capital Securities when due or (iii) at any time
if the Company at its option and in its sole discretion determines that the
Global Securities of a particular series should be exchanged for definitive
Capital Securities of that series in registered form. Any Global Security that
is exchangeable pursuant to the preceding sentence shall be exchangeable for,
unless otherwise specified or contemplated by Section 3.01, definitive Capital
Securities in registered form only bearing Payments (if any) at the same rate or
pursuant to the same formula, having the same date of issuance, the same date or
dates from which interest shall accrue, the same Payment Dates or manner of
determination of such Payment Dates, redemption provisions, if any, specified
currency and other terms and of differing denominations aggregating a like
amount as the Global Security so exchangeable. Definitive Capital Securities in
registered form shall be registered in the names of the owners of the beneficial
interests in such Global Securities as such names are from time to time provided
by the Holder to the Trustee.

      

      Any
Global Security that is exchangeable pursuant to the preceding paragraph, unless
otherwise specified as contemplated by Section 3.01, shall be exchangeable for
Capital Securities issuable in authorized denominations of a like aggregate
principal amount and tenor.

      
        
          
          

        

        
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      No Global
Security in registered form may be transferred except as a whole by the Holder
to a nominee of the Holder or by the Holder or any such nominee to a successor
of the Holder or a nominee of such successor. Except as provided above, owners
solely of beneficial interests in a Global Security shall not be entitled to
receive physical delivery of Capital Securities in definitive form and will not
be considered the holders thereof for any purpose under this Capital Securities
Indenture.

      

      In the
event that a Global Security is surrendered for redemption or exchange for
Dollar Preference Shares or Exchange Securities in part pursuant to Section
11.07 or Section 13.05, the Company shall execute, and the Trustee shall
authenticate and deliver to the Holder of such Global Security, without service
charge, a new Global Security in a denomination equal to and in exchange for the
unredeemed or unexchanged portion of the principal of the Global Security so
surrendered.

      

      The Agent
Members and any beneficial owners shall have no rights under this Capital
Securities Indenture with respect to any Global Security held on their behalf by
a Holder, and such Holder may be treated by the Company, the Trustee, and any
agent of the Company or the Trustee as the owner of such Global Security for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
the Company, the Trustee, or any agent of the Company or the Trustee, from
giving effect to any written certification, proxy or other authorization
furnished by a Holder or impair, as between any such Holder or other clearance
service and its Agent Members and Holders the operation of customary practices
governing the exercise of the rights of a holder of any security, including
without limitation the granting of proxies or other authorization of
participants to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action which a Holder is entitled to give or
take under this Capital Securities Indenture.

      

      In
connection with any exchange of interests in a Global Security for definitive
Capital Securities of another authorized form, as provided in this subsection
Section 3.05(a), then without unnecessary delay but in any event not later than
the earliest date on which such interests may be so exchanged, the Company shall
deliver to the Trustee definitive Capital Securities in aggregate principal
amount equal to the principal amount of such Global Security or the portion to
be exchanged, executed by the Company. On or after the earliest date on which
such interests may be so exchanged, such Global Security shall be surrendered by
the Holder to the Trustee, as the Company’s agent for such purpose, to be
exchanged, in whole or from time to time in part, for definitive Capital
Securities without charge (unless the definitive Capital Securities in
registered form are to be issued to an Excepted Person (as defined in Section
13.10) in which case the Company or Trustee may require payment of any taxes or
governmental charges arising) and the Trustee shall authenticate and deliver,
in

      

      
        
          
          

        

        
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      exchange
for each portion of such Global Security, an equal aggregate principal amount of
definitive Capital Securities of authorized denominations as the portion of such
Global Security to be exchanged. Any Global Security that is exchangeable
pursuant to this Section 3.05 shall be exchangeable for Capital Securities
issuable in the denominations specified as contemplated by Section 3.01 and
registered in such names as the Holder of such Global Security shall direct. If
a definitive Capital Security in registered form is issued in exchange for any
portion of a Global Security after the close of business at the office or agency
where such exchange occurs on any record date and before the opening of business
at such office or agency on the relevant Payment Date, Payments will not be
payable on such Payment Date in respect of such definitive Capital Security, but
will be payable on such Payment Date only to the person to whom Payments in
respect of such portion of such Global Security are payable.

      

      A
Depositary may grant proxies and otherwise authorize any person, including Agent
Members and persons that may hold interests through Agent Members, to take any
action which a holder is entitled to take under this Capital Securities
Indenture with respect to the Capital Securities.

      

      (b)     Except as
otherwise specified pursuant to Section 3.01, registered Capital Securities of
any series may only be exchanged for a like aggregate principal amount of
registered Capital Securities of such series of other authorized denominations
containing identical terms and provisions, and, if bearer Capital Securities of
any series are issued in more than one authorized denomination, such bearer
Capital Securities may only be exchanged for a like aggregate principal amount
of bearer Capital Securities of other authorized denominations containing
identical terms and provisions. If Capital Securities of any series are issued
in both registered and bearer form, bearer Capital Securities of such series may
be exchanged for a like aggregate principal amount of registered Capital
Securities of such series of authorized denominations containing identical terms
and provisions and registered Capital Securities of such series may be exchanged
for a like aggregate principal amount of bearer Capital Securities of such
series of authorized denominations. Capital Securities to be exchanged shall be
surrendered at an office or agency of the Company designated pursuant to Section
10.02 for such purpose, and the Company shall execute, and the Trustee shall
authenticate and deliver, in exchange therefor the Capital Security or Capital
Securities of the same series which the Holder making the exchange shall be
entitled to receive. All bearer Capital Securities surrendered for exchange
shall have attached all unmatured Coupons appertaining thereto, if any, and, in
case at the time of any such exchange any Payment on such Capital Securities is
in default, shall in addition have attached all matured Coupons in default
appertaining thereto.

      

      
 

      
        
          
          

        

        
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      Except as otherwise specified
pursuant to Section 3.01, the Company shall cause to be kept in the principal
corporate trust office of the Trustee a register (the register
maintained in such office and in any other office or agency of the Company in a
Place of Payment being herein sometimes collectively referred to as the “Capital Security Register”
provided, no such
Capital Security Register shall be maintained in any office or agency in the
United Kingdom) in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of registered Capital
Securities and of transfers of such Capital Securities. The Trustee is hereby
appointed “Capital
Security Registrar” for the purpose of
registering Capital Securities in registered form and transfers of Capital
Securities in registered form as herein provided.

      

      Registered
Capital Securities shall be transferable only on the Capital Security Register.
Upon surrender for registration of transfer of any registered Capital Security
of any series, together with the form of transfer endorsed on it, duly completed
and executed at an office or agency of the Company designated pursuant to
Section 10.02 for such purpose, the Company shall execute, and the Trustee shall
authenticate and deliver to the address specified in the form of transfer,
within three Business Days in the name of the designated transferee or
transferees, one or more new registered Capital Securities of the same series of
any authorized denominations containing identical terms and provisions, of a
like aggregate principal amount. If only part of a registered Capital Security
is transferred, a new registered Capital Security of an aggregate principal
amount equal to the amount not being transferred shall be executed by the
Company, and authenticated and delivered by the Trustee to the transferor, in
the name of the transferor, within three Business Days after the Trustee acting
as Paying Agent pursuant to Section 10.02 receives the registered Capital
Security. The new registered Capital Security will be delivered to the
transferor by uninsured post at the risk of the transferor to the address of the
transferor appearing in the Capital Security Register. A new registered Capital
Security of an aggregate principal amount equal to the amount being transferred
shall be delivered by the Trustee to the transferee, in the name of the
transferee, within three Business Days after the Trustee acting as Paying Agent
pursuant to Section 10.02 receives the registered Capital Security. The new
registered Capital Security will be delivered to the transferee by uninsured
post at the risk of the transferee to the address of the transferee specified in
the form of transfer.

      

      Bearer
Capital Securities and Coupons shall be transferable by delivery.

      

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

      

      
 

      
        
          
          

        

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

      

      

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

      

      The
Company shall not be required (i) to issue, register the transfer of or exchange
any Capital Security of any series during a period beginning at the opening of
business 15 days before the day of the giving of a notice of redemption of
Capital Securities of such series selected for redemption under Section 11.03
and ending at the close of business on the day of the giving of such notice, or
(ii) to register the transfer of or exchange any Capital Security so selected
for redemption in whole or in part, except the unredeemed portion of any Capital
Securities being redeemed in part.

      

      Notwithstanding
anything herein or in the terms of any series of Capital Securities to the
contrary, neither the Company nor the Trustee (which shall rely on an Officer’s
Certificate and an Opinion of Counsel) shall be required to exchange any bearer
Capital Security for a registered Capital Security or any registered Capital
Security for a bearer Capital Security if such exchange would result in any
adverse tax consequence to the Company under then applicable tax laws of the
United States of America or the United Kingdom or any political subdivision
thereof or therein.

      

      Section
3.06. Mutilated, Destroyed,
Lost and Stolen Capital Securities. If any mutilated Capital Security or
Coupon (including any Global Security) is surrendered to the Trustee, the
Company may execute and the Trustee shall, in the case of a Capital Security,
authenticate and deliver, or in the case of a Coupon deliver, in exchange
therefor a new Capital Security or Coupon of the same series containing
identical terms and provisions and of like amount, and bearing a number not
contemporaneously outstanding.

      

      If there
shall be delivered to the Company and to the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Capital Security
(including any Global Security) or Coupon, if any, and (ii) such security or
indemnity as may be required by them to save each of them and any agent of any
of them harmless, then, in the absence of notice to the Company or the Trustee
that such Capital Security or Coupon, if any, has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall
authenticate and deliver, or in the case of a Coupon deliver, in lieu of any
such

      
        
          
          

        

        
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      destroyed,
lost or stolen Capital Security or Coupon, if any, a new Capital Security or
Coupon, if any, of the same series containing identical terms and provisions and
of like amount, and bearing a number not contemporaneously
outstanding.

      

      In case
any such mutilated, destroyed, lost or stolen Capital Security or Coupon has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Capital Security or Coupon, if any, pay such Capital
Security or Coupon.

      

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

      

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

      

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

      

      Section
3.07.  Payments;
Rights Preserved.

      

      Except as
otherwise provided in a supplemental indenture:

      

      (a)     The
Company has no obligation to make any Payments with respect to any series of
Capital Securities except in the case of an Event of Default and then to the
extent (but only to the extent) provided in Section 5.02 and in the case of a
Default and then to the extent (but only to the extent) provided in Section
5.03.

      

      (b)     Except as
otherwise provided as contemplated by Section 3.01 with respect to any series of
Capital Securities, Payments or Missed Payments, if any, on any Capital
Securities which are payable, and are paid or duly provided for, on any Payment
Date shall be paid, in the case of registered Capital Securities, to the Person
in whose name that Capital Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such Payments
and, in the case of definitive Capital Securities in bearer form,

      
        
          
          

        

        
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      upon
presentation and surrender of the Coupon appertaining thereto to a Paying Agent
of the Company outside the United Kingdom in respect of the Payment or Missed
Payments to be paid on such Payment Date or, in the case of Global Securities
held by any Holder, to the Holder including through a Paying Agent of the
Company designated pursuant to Section 3.01 outside the United Kingdom for
collection by the Holder. Any payment of Missed Payments on a registered Capital
Security which is not made on a Payment Date or at Maturity shall be made to the
person who is the Holder on the record date established by the Company for such
purpose.

      

      In the
case of registered Capital Securities where payment is to be made in Dollars,
payment at any Paying Agent’s office outside The City of New York will be made
in Dollars by check drawn on, or, at the request of the Holder, by transfer to a
Dollar account maintained by the payee with, a bank in The City of New
York.

      

      In the
case of registered Capital Securities where payment is to be made in a Foreign
Currency, payment will be made as established pursuant to Section
3.01.

      

      (c)     Subject
to the foregoing provisions of this Section 3.07, each Capital Security
delivered under this Capital Securities Indenture upon registration of transfer
of or in exchange for or in lieu of any other Capital Security shall carry the
rights to accrued and unpaid Payments and Missed Payments, if any, and to accrue
Payments, which were carried by such other Capital Security.

      

      (d)     “Missed Payments” means any
Payments in respect of the Capital Securities of a series not paid on any
applicable Payment Date, together with any other Payments in respect of the
Capital Securities of such series not paid on any other Payment Date, so long as
the same remain unpaid. Missed Payments shall accumulate until paid and shall
not bear interest.

      

      Section
3.08. Persons Deemed
Owners. Prior to due presentment of a registered Capital Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name such Capital Security is
registered as the owner of such Capital Security for the purpose of receiving
payment of principal of (and premium, if any) and (subject to Section 3.05 and
Section 3.07) any Payment and Missed Payments, if any, on such Capital Security
and for all other purposes whatsoever, whether or not such Capital Security be
overdue, and neither the Company, the Trustee nor any agent of the Company or
the Trustee shall be affected by notice to the contrary.

      

      The
Company, the Trustee and any agent of the Company or the Trustee may treat the
bearer of any bearer Capital Security or any Coupon as the owner of such Capital
Security or Coupon, as the case may be, for the purpose of receiving payment of
principal of (and premium, if any) and any Payment and Missed

      
        
          
          

        

        
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      Payments,
if any, on such Capital Security or payment of such Coupon, as the case may be,
and for all other purposes whatsoever, whether or not such Capital Security or
Coupon be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.

      

      Section
3.09. Cancellation. All
Capital Securities and Coupons surrendered for payment, redemption, registration
of transfer or exchange shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The
Company may at any time deliver to the Trustee for cancellation any Capital
Securities previously authenticated and delivered hereunder and Coupons which
the Company may have acquired in any manner whatsoever, and all Capital
Securities and Coupons so delivered shall be promptly cancelled by the Trustee.
No Capital Securities shall be authenticated in lieu of or in exchange for any
Capital Securities cancelled as provided in this Section, except as expressly
permitted by the provisions of the Capital Securities of any series or pursuant
to the provisions of this Capital Securities Indenture. The Trustee shall
deliver to the Company all cancelled Capital Securities and Coupons held by the
Trustee.

      

      Section
3.10. Computation of
Payments. Except as otherwise specified pursuant to Section 3.01 for
Capital Securities of any series, Payments on the Capital Securities of each
series shall be computed on the basis of a 360-day year of twelve 30-day
months.

      

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

      

      ARTICLE
4

      SATISFACTION AND DISCHARGE

      

      Section
4.01.  Satisfaction
and Discharge of Capital Securities Indenture. This
Capital Securities Indenture shall upon Company Request cease to be of further
effect with respect to Capital Securities of any series (except as to any
surviving rights of registration of transfer or exchange of Capital Securities
of such series herein expressly provided for), and the Trustee, at the expense
of the Company, shall execute proper instruments acknowledging satisfaction
and

       

      

      
        
          
          

        

        
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      discharge
of this Capital Securities Indenture with respect to the Capital Securities of
such series when

      

      
        (a)      either

      

      

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

      

      (ii)     all such
Capital Securities and Coupons, if any, not theretofore delivered to the Trustee
for cancellation

      

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

      

      (B)
     are to be
exchanged for Dollar Preference Shares or Exchange Securities and notice of
exchange of such Capital Securities for Dollar Preference Shares or Exchange
Securities pursuant to Article 13 shall have been given,

      

      and the
Company has deposited or caused to be deposited with the Trustee, as trust funds
in trust for the purpose, an amount in cash, or U.S. Government Obligations
(with respect to Capital Securities denominated in Dollars) or Foreign
Government Securities (with respect to Capital Securities denominated in the
same Foreign Currency) maturing, in the case of (i) above, as to principal and
any accrued Payments and Missed Payments, if any, and, in the case of (ii)
above, as to any accrued Payments and Missed Payments, if any, in such amounts
and at such times as will ensure the availability of cash sufficient to pay and
discharge all claims with respect to such Capital Securities and Coupons not
theretofore delivered to the Trustee for cancellation, in the case of (i) above,
for principal (and premium, if any) and any accrued Payments and Missed
Payments, if any, and, in the case of (ii) above, as to any accrued Payments and
Missed Payments, if any, to the date of such deposit (in the case of Capital
Securities and Coupons which have become due and payable) or to the Redemption
Date or the Exchange Date, as the case may be;

      

      
        
          
          

        

        
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      (b)     the
Company has paid or caused to be paid all other sums payable hereunder by the
Company with respect to the Capital Securities of such series; and

      

      (c)     the
Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating
to the satisfaction and discharge of this Capital Securities Indenture with
respect to the Capital Securities of such series have been complied
with.

      

      Notwithstanding
any satisfaction and discharge of this Capital Securities Indenture, the
obligations of the Company to the Trustee under Section 6.07, the obligations of
the Trustee to any Authenticating Agent under Section 6.14 and, if cash, U.S.
Government Obligations and/or Foreign Government Securities shall have been
deposited with the Trustee pursuant to subclause 4.01(a)(ii) of this Section,
the obligations of the Trustee under Section 4.02 and the last paragraph of
Section 10.03 shall survive such satisfaction and discharge.

      

      Section
4.02. Application of Trust
Money. Subject to the provisions of the last paragraph of Section 10.03,
all cash, U.S. Government Obligations and Foreign Government Securities
deposited with the Trustee pursuant to Section 4.01 shall be held in trust and
such cash and the proceeds from such U.S. Government Obligations and/or Foreign
Government Securities shall be applied by it, in accordance with the provisions
of the Capital Securities of such series, any Coupons appertaining thereto and
this Capital Securities Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as Paying Agent) as the Trustee
may determine, to the Persons entitled thereto, of the principal (and premium,
if any) and accrued but unpaid Payments, if any, and Missed Payments, if any,
for the payment of which such cash, U.S. Government Obligations and/or Foreign
Government Securities have been deposited with the Trustee.

      

      Section
4.03. Repayment to
Company. The Trustee, the Calculation Agent and any Paying Agent promptly
shall pay to the Company upon Company Request any excess money, U.S. Government
Obligations and/or Foreign Government Securities held by them at any time with
respect to any series of Capital Securities.

      

      

      ARTICLE
5

      REMEDIES

      

      Section
5.01. Events of
Default. “Event of
Default”, wherever used herein with respect to Capital Securities of a
particular series, means (i) the making of an order by a court of competent
jurisdiction which is not successfully

      

      
        
          
          

        

        
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      appealed
within 30 days of the making of such order, or valid adoption by the
shareholders of the Company of an effective resolution, for the winding-up of
the Company (other than under or in connection with a scheme of amalgamation,
arrangement or reconstruction not involving bankruptcy or insolvency) or (ii)
any other Event of Default provided with respect to Capital Securities of such
series pursuant to Section 3.01.

      

      Section
5.02. Acceleration of
Maturity; Rescission and Annulment. If an Event of Default occurs with
respect to Capital Securities of any series and is continuing, then in every
such case the Trustee or the Holder or Holders of not less than 25% in aggregate
principal amount of the Outstanding Capital Securities of such series may
declare the principal amount of, any accrued but unpaid Payments and any Missed
Payments on, the Capital Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by the Holder or Holders), and upon any such declaration such principal amount
(or specified amount) shall become immediately due and payable.

      

      At any
time after such a declaration of acceleration with respect to Capital Securities
of any series has been made but before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter in this Article
provided, the Holder or Holders of a majority in aggregate principal amount of
the Outstanding Capital Securities of such series, by written notice to the
Company and the Trustee, may rescind or annul such declaration of acceleration
and its consequences (including any Event of Default under another series of
Capital Securities arising therefrom) but only if

      

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

      

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

      

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

      

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

      

      (b)     all
Events of Default with respect to Capital Securities of such series have been
cured or waived as provided by Section 5.13.

       

       

      
        
          
          

        

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

      

      Section
5.03. Defaults; Collection of
Indebtedness and Suits for Enforcement by
Trustee.

      

      “Default” wherever used herein
with respect to Capital Securities of a particular series, means any one of the
following events (whatever the reason for such Default and whether it shall be
voluntary or involuntary or be effected by operation of law pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

      

      (a)     the
Company fails to pay or to set aside a sum to provide for payment of any Missed
Payments on or prior to the date upon which (i) a dividend is paid on any class
of share capital of the Company, or (ii) any other Capital Securities of the
particular series are redeemed or repurchased (other than a repurchase in
connection with the dealing in securities), and such failure continues for 30
days; or

      

      (b)     the
Company fails to pay or to set aside a sum to provide for payment of the
principal amount (and premium, if any), any accrued but unpaid Payments and any
Missed Payments on the date fixed for redemption of Capital Securities of such
series and such failure continues for seven days; or

      

      (c)     any other
Default or Payment Event (as defined below) provided with respect to Capital
Securities of such series pursuant to Section 3.01;

      

      provided that it shall not be
a Default if the Company fails to make payment as described in (a), (b)
or (c) above and the Solvency Condition is not satisfied on the thirtieth day
following such failure, in the case of (a) above or on the seventh day following
such failure, in the case of (b) above and on the relevant day following such
failure, in the case of (c) above. The failure of the Company to make a payment
specified in clause (a), (b) or (c) above because of a failure to satisfy the
Solvency Condition is referred to herein as a “Payment Event”.

      

      If a
Default occurs and is continuing, the Trustee may commence a judicial proceeding
for the collection of the sums so due and unpaid or a proceeding for the
winding-up in Scotland (but not elsewhere) of the Company, provided that the
Trustee may not, upon the occurrence of a Default, declare the principal amount
of any of the Outstanding Capital Securities to be due and payable. The Trustee
and Holders of Capital Securities by their acceptance of such Capital Securities
will be deemed to have waived any right of set-off, counterclaim or combination
of accounts with respect to such Capital Securities or this Indenture (or
between the obligations under or in respect of any Capital

      

      
        
          
          

        

        
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        Securities
and any liability owed by a Holder or the Trustee to the Company) that they
might otherwise have against the Company in any such
winding-up.

      

      

      No
recourse for the payment of the principal of (or premium, if any) or Payments or
Missed Payments, if any, on any Capital Security, or for any claim based thereon
or on any Coupon or otherwise in respect thereof or of such Coupon and no
recourse under or upon any obligation, covenant or agreement of the Company in
this Capital Securities Indenture, or in any Capital Security or in any Coupon,
or because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, officer or director, past, present or
future, of the Company or of any successor corporation of the Company, either
directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that to the
extent lawful all such liability is hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Capital
Securities Indenture and the issue of the Capital Securities.

      

      Section
5.04. Trustee May File Proofs
of Claim. In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition,
winding-up or other judicial proceeding relative to the Company or any other
obligor upon the Capital Securities of any series or to the property of the
Company or such other obligor or their creditors (other than under or in
connection with a scheme of amalgamation or reconstruction not involving
bankruptcy or insolvency), the Trustee (irrespective of whether the principal of
the Capital Securities of such series shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company for the payment of overdue principal
(and premium, if any) or Payments and Missed Payments, if any) shall be entitled
and empowered, by intervention in such proceeding or otherwise, to take any and
all actions authorized under the Trust Indenture Act in order to have claims of
the Holders and the Trustee allowed in any such proceeding. In particular, the
Trustee shall be authorized to collect and receive any moneys and other property
payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder of a Capital Security and each holder of a Coupon to make such payments
to the Trustee and, in the event that the Trustee shall consent to the making of
such payments directly to such Holders or holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due to
the Trustee under Section 6.07.

      

       

      
        
          
          

        

        
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        Subject
to Article 8 and Section 9.02, nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on
behalf of
any Holder of any Capital Security or any holder of any Coupon any plan of
reorganization, arrangement, adjustment, or composition affecting any Capital
Securities or Coupons or the rights of any Holder of any Capital Security or any
holder of any Coupon or to authorize the Trustee to vote in respect of the claim
of any such Holder or holder in any such proceeding.

      

      

      The
provisions of this Section 5.04 are subject to the provisions of Section
12.01.

      

      Section
5.05. Trustee May Enforce
Claims Without Possession of Capital Securities. All rights of
action and claims under this Capital Securities Indenture or the Capital
Securities or Coupons, if any, may be prosecuted and enforced by the Trustee
without the possession of any of the Capital Securities or Coupons or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel (subject, with regard to the Company, to the
provisions of Section 12.01) be for the ratable benefit of the Holders of the
Capital Securities and any holders of any Coupons in respect of which such
judgment has been recovered.

      

      Section
5.06. Application of Money
Collected. Any money collected by the Trustee pursuant to this Article in
respect of any series of Capital Securities shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal (and premium, if any) or
Payments or Missed Payments, if any, upon presentation of such Capital
Securities and any Coupons and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

      

      FIRST: To
the payment of all amounts applicable to such series of Capital Securities in
respect of which or for the benefit of which such money has been collected due
the Trustee under Section 6.07;

      

      SECOND:
To the payment of the amounts then due and unpaid for principal of (and premium,
if any) and Payments or Missed Payments, if any, on such series of Capital
Securities in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the
amounts due and payable on such Capital Securities for principal (and premium,
if any) and Payments and Missed Payments, if any, respectively; and

      

      THIRD: To
the payment of the balance, if any, to the Company.

      

      
        
          
          

        

        
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      Section
5.07. Limitation on
Suits. No Holder of any Capital Security of any series or holder of any
Coupon shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Capital Securities Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless

      

      (a)     such
Holder has previously given written notice to the Trustee of a continuing Event
of Default or Default with respect to Capital Securities of the same series
specifying such Event of Default or Default and stating that such notice is a
“Notice of Default”
hereunder;

      

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

      

      (c)     such
Holder of a Capital Security or holder of a Coupon has offered to the Trustee
reasonable indemnity satisfactory to it against the costs, expenses and
liabilities to be incurred in compliance with such request;

      

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

      

      (e)     no
direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of
the Outstanding Capital Securities of such series;

      

      it being
understood and intended that no one or more Holders of Capital Securities of a
particular series or holders of Coupons appertaining thereto, if any, shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Capital Securities Indenture to affect, disturb or prejudice the rights
of any other such Holders or holders, or to obtain or to seek to obtain priority
or preference over any other such Holders or holders or to enforce any right
under this Capital Securities Indenture, except in the manner herein provided
and for the equal and ratable benefit of all Holders of Capital Securities of
such series or holders of such Coupons.

      

      Section
5.08. Unconditional Right of
Holders to Receive Principal, Premium and Payments, If Any.
Notwithstanding any other provision in this Capital Securities
Indenture, the Holder of any Capital Security or the holder of any Coupon
appertaining thereto shall have the right, which is absolute and unconditional,
to receive payment of the principal of (and premium or interest on, if any) and
(subject to Section 3.07) any Payment or Missed Payments on, if any, such
Capital Security when due and payable in accordance with the provisions of the
Capital Securities Indenture and as expressed in such Capital Security
or

      

      
        
          
          

        

        
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      Coupon
(or, in the case of redemption or exchange, on the Redemption Date or Exchange
Date, as the case may be) and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired without the consent of such
Holder or holder.

      

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

      

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

      

      Section
5.11. Delay or Omission Not
Waiver. No delay or omission of the Trustee or of any Holder of any
Capital Security or holder of any Coupon to exercise any right or remedy
accruing upon any Event of Default or Default shall impair any such right or
remedy or constitute a waiver of any such Event of Default or Default or an
acquiescence therein. Every right and remedy given by this Article or by law to
the Trustee or to the Holders of Capital Securities or holders of any Coupons
may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders of Capital Securities or holders of any Coupons,
as the case may be.

      

      Section
5.12. Control by
Holders. The Holders of a majority in aggregate principal amount of the
Outstanding Capital Securities of any series shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred on the Trustee with
respect to the Capital Securities of such series, provided that

      

      
        
          
          

        

        
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      (a)     such
direction shall not be in conflict with any rule of law or with this Capital
Securities Indenture;

      

      (b)     the
Trustee shall not determine that the action so directed would be unjustly
prejudicial to the Holders of any Capital Securities of any series not taking
part in such direction with respect to which the Trustee is acting as the
Trustee; and

      

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

      

      Section
5.13. Waiver of Past
Defaults. The Holders of not less than a majority in aggregate principal
amount of the Outstanding Capital Securities of any series may on behalf of the
Holders of all the Capital Securities of such series and holders of any related
Coupons waive any past Event of Default or Default or Payment Event hereunder
with respect to such series and its consequences, except an Event of Default or
Default

      

      (a)     in the
payment of the principal of (or premium, if any) or Payments (including Missed
Payments, if any) on any Capital Security of such series, or

      

      (b)     in
respect of a covenant or provision hereof which under Article 9 cannot be
modified or amended without the consent of the Holder of each Outstanding
Capital Security of such series affected.

      

      Upon any
such waiver, such Event of Default, Default or Payment Event shall cease to
exist, and any Event of Default or Default or Payment Event with respect to any
series arising therefrom shall be deemed to have been cured and not to have
occurred for every purpose of this Capital Securities Indenture, but no such
waiver shall extend to any subsequent or other Event of Default or Default or
Payment Event or impair any right consequent thereon.

      

      Section
5.14. Undertaking for
Costs. All parties to this Capital Securities Indenture agree, and each
Holder of any Capital Security and each holder of any Coupon by his acceptance
thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Capital Securities Indenture, or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, the filing by any party litigant to
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder or group of Holders holding in the
aggregate more than 10% in principal amount of the Outstanding Capital
Securities of any

       

      
        
          
          

        

        
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      series,
or to any suit instituted by any Holder or holder of a Coupon for the
enforcement of the payment of the principal of (or premium, if any) or Payments
or Missed Payments, if any, on any Capital Security on or after the dates upon
which such Payments or Missed Payments become due and payable pursuant to the
terms hereof or the terms expressed in such Capital Security or Coupon (or, in
the case of redemption or exchange, on or after the Redemption Date or the
Exchange Date, as the case may be).

      
        

        

        ARTICLE
6

        THE TRUSTEE

        

        Section
6.01. Certain Duties and
Responsibilities. The duties and responsibilities of the Trustee shall be
as provided by the Trust Indenture Act. Notwithstanding the foregoing, no
provision of this Capital Securities Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it. Whether or not therein expressly so provided,
every provision of this Capital Securities Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

        

        Section
6.02. Notice of
Defaults. Within 90 days after the occurrence of any Event of Default,
Default or Payment Event hereunder with respect to Capital Securities of any
series of which a Responsible Officer of the Trustee has actual knowledge the
Trustee shall transmit in the manner and to the extent provided in Section 1.06
to Holders of Capital Securities of such series notice of such Event of Default,
Default or Payment Event hereunder known to the Trustee, unless such Event of
Default, Default or Payment Event shall have been cured or waived; provided, however, that, the
Trustee shall be protected in withholding such notice if it determines in
good faith that the withholding of such notice is in the interest of the Holders
of Capital Securities of such series.

        

        Section
6.03. Certain Rights of
Trustee. Subject to the provisions of Section 6.01:

        

        (a)     the Trustee
may conclusively rely and shall be fully protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, coupon or
other evidence of indebtedness or other paper or document (whether in its
original or facsimile form) believed by it to be genuine and to have been signed
or presented by the proper party or parties;

        

        
          
            
            

          

          
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        (b)     any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board
of Directors of the Company may be sufficiently evidenced by a Board
Resolution;

         

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

        

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

        

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

        

        (f)     the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, coupon or
other evidence of indebtedness or other paper or document, but the Trustee, in
its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit at the reasonable expense of the Company and shall
incur no liability by reason of such inquiry or investigation; provided that the
Trustee shall not be entitled to such information which the Company is prevented
from disclosing as a matter of law or contract;

        

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

        

        (h)     the
Trustee shall not be liable for any action taken or omitted by it in good faith
and believed by it to be authorized or within the discretion or rights or powers
conferred upon it by this Capital Securities Indenture;

        

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

        

        
          
            
            

          

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

        

        (k)     the
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities
hereunder.

        

        Section
6.04. Not Responsible for
Recitals or Issuance of Capital Securities. The recitals
contained herein and in the Capital Securities, except the Trustee’s certificates
of authentication, shall be taken as the statements of the Company, and neither
the Trustee nor any Authenticating Agent assumes any responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Capital Securities Indenture or of the Capital Securities or
Coupons, except that the Trustee represents and warrants that it has duly
authorized, executed and delivered this Capital Securities Indenture. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of Capital Securities or the proceeds
thereof.

        

        Section
6.05. May Hold Capital
Securities. The Trustee, any Authenticating Agent, any Paying Agent, any
Capital Security Registrar and any Calculation Agent or any other agent of the
Company, in its individual or any other capacity, may become the owner or
pledgee of Capital Securities or Coupons and, subject to Section 6.08 and 6.13,
may otherwise deal with the Company with the same rights it would have if it
were not Trustee, Authenticating Agent, Paying Agent, Capital Security
Registrar, Calculation Agent or such other agent.

        

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

        

        Section
6.07.  Compensation
and Reimbursement.  The Company agrees

        

        (a)     to pay to the
Trustee from time to time compensation for all services rendered by it hereunder
as agreed upon in writing by the Company from time to time (which compensation
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

        

        
          
            
            

          

          
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        (b)     except as
otherwise expressly provided herein, to reimburse the Trustee upon its request
for all expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Capital Securities Indenture (including
the reasonable compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as shall be
determined by a court of competent jurisdiction to have been caused by its own
negligence or bad faith; and

        

        (c)     to fully
indemnify the Trustee for, and to hold it harmless against, any and all loss,
liability, claim, damage or expense (including legal fees and expenses) incurred
without negligence or bad faith on its part, arising out of or in connection
with the acceptance or administration of the trust or trusts hereunder including
the costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder but excluding any tax liabilities of the Trustee in respect of its net
profits.

        

        The
Trustee shall notify the Company in writing of the commencement of any action or
claim in respect of which indemnification may be sought promptly after a
Responsible Officer of the Trustee becomes aware of such commencement (provided
that the failure to make such notification shall not affect the Trustee’s rights
hereunder) and the Company shall be entitled to participate in, and to the
extent it shall wish, to assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Trustee. The Trustee shall not compromise
or settle any such action or claim without the written consent of the Company,
which consent shall not be unreasonably withheld.

        

        As
security for the performance of the obligations of the Company under this
Section, the Trustee shall have a senior claim to which the Capital Securities
are hereby made subordinate, upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the payment of principal of
(or premium, if any) or Payments or Missed Payments, if any, on the Capital
Securities.

        

        Section
6.08. Disqualification;
Conflicting Interests. If the Trustee has or shall acquire a conflicting
interest within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by,
and subject to the provisions of, the Trust Indenture Act and this Capital
Securities Indenture.

        

        Section
6.09. Corporate Trustee
Required; Eligibility. There shall at all times be a Trustee hereunder
with respect to each series which shall be a corporation organized and doing
business under the laws of the United States of America, any State thereof or
the District of Columbia, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of

        

        
          
            
            

          

          
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        at least
$50,000,000, subject to supervision or examination by Federal or State or
District of Columbia authority and, if there be such corporation willing and
able to act as trustee on reasonable and customary terms, having its corporate
trust office or agency in the Borough of Manhattan, The City of New York, New
York. If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article 6.

        

        Section
6.10.  Resignation
and Removal; Appointment of Successor.

        

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

        

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

        

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

        

        
          (d)     If at any
time:

        

        

        (i)     the
Trustee shall fail to comply with Section 6.08 after written request therefor by
the Company or by any Holder who has been a bona fide Holder of a Capital
Security of the series as to which the Trustee has a conflicting interest for at
least six months, or

         

        
          
            
            

          

          
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        (ii)     the
Trustee shall cease to be eligible under Section 6.09 and shall fail to resign
after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Capital Security for at least six months, or

        

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

        

        (iv)     the
Trustee shall fail to perform its obligations to the Company under the Capital
Securities Indenture in any material respect,

        

        then, in
any such case, (i) the Company by a Board Resolution may remove the Trustee with
respect to any or all series of Capital Securities or (ii) subject to Section
5.14 (and except in the case of subparagraph 6.10(d)(iv) above), any Holder who
has been a bona fide Holder of a Capital Security for at least six months (and,
in the case of Section 6.10(d)(i) above, who is a Holder of a Capital Security
of the series as to which the Trustee has a conflicting interest) may, on behalf
of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Capital
Securities and the appointment of a successor Trustee or Trustees.

        

        (e)     If the
Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the Capital
Securities of one or more series, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee or Trustees with respect to the Capital
Securities of such series (it being understood that any successor Trustee may be
appointed with respect to the Capital Securities of one or more or all of such
series and at any time there shall be only one Trustee with respect to the
Capital Securities of any particular series), and shall comply with the
applicable requirements of Section 6.11. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Capital Securities of any series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Capital Securities of such series delivered to the Company and the
retiring Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements of
Section 6.11, become the successor Trustee with respect to the Capital
Securities of such series and to that extent supersede the successor Trustee
appointed by the Company. If no successor Trustee with respect to the Capital
Securities of any series shall have been so appointed by the Company or the
Holders of Capital Securities of such series and accepted appointment in the
manner hereinafter required by Section 6.11, any Holder who has been a bona fide
Holder of a Capital Security of such

        

        
          
            
            

          

          
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        series
for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Capital Securities of such
series.

        

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

        

        Section
6.11.  Acceptance of
Appointment by Successor.

        

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

        

        (b)     In case
of the appointment hereunder of a successor Trustee with respect to the Capital
Securities of one or more (but not all) series, the Company, the retiring
Trustee and each successor Trustee with respect to the Capital Securities of
such series shall execute and deliver an indenture supplemental hereto wherein
each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Capital Securities
of such series to which the appointment of such successor Trustee relates, (2)
if the retiring Trustee is not retiring with respect to all Capital Securities,
shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Capital Securities of such series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Capital Securities
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any

        

        
          
            
            

          

          
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        trust or
trusts hereunder administered by any other such Trustee; and upon the execution
and delivery of such supplemental indenture the resignation or removal of the
retiring Trustee shall become effective to the extent provided therein and each
such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Capital Securities of such series to which the
appointment of such successor Trustee relates; but, on request of the Company or
any successor Trustee, such retiring Trustee shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder with respect to the Capital Securities of such series to which
the appointment of such successor Trustee relates.

        

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

        

        (d)     No successor
Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article
6.

        

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

        

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

        

        Section
6.14. Appointment of
Authenticating Agent. The Trustee may at any time appoint an
Authenticating Agent or Agents with respect to one or more series of Capital
Securities which shall be authorized to act on behalf of the Trustee to
authenticate Capital Securities of such series upon original issue,
or

        

        
          
            
            

          

          
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        issued
upon exchange, registration of transfer or partial redemption thereof or in lieu
of destroyed, lost or stolen Capital Securities, and Capital Securities so
authenticated shall be entitled to the benefits of this Capital Securities
Indenture and shall be valid and obligatory for all purposes as if authenticated
by the Trustee hereunder. Wherever reference is made in this Capital Securities
Indenture to the authentication and delivery of Capital Securities by the
Trustee or the Trustee’s certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation or national
banking association organized and doing business under the laws of the United
States, any State thereof or the District of Columbia, authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal
or State or District of Columbia authority. If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such Authenticating Agent
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section.

        

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

        

        An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Company. The Trustee may at any time terminate the agency
of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice to the
Holders of Capital Securities in the manner and to the extent provided in
Section 1.06. Any successor Authenticating Agent upon acceptance of its
appointment hereunder

        

        
          
            
            

          

          
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        shall
become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

        

        The
Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 6.14.

        

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

        

        This is
one of the Capital Securities referred to in the within-mentioned Capital
Securities Indenture.

        .

           

          
            
              	 	
                      THE
      BANK OF NEW YORK MELLON,
      

                      LONDON
      BRANCH

                      as
      Trustee

                    	 
	 	 	 	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	 	 
	 	 	as
      Authenticating Agent	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
                      By:
      

                    	 	 
	 	 	Authorized
      Signatory	 
	 	 	 	 

          

        

        

        ARTICLE
7

        HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

        

        Section
7.01. Company to Furnish
Trustee Names and Addresses of Holders. The Company, with
respect to any series of Capital Securities in registered form, will
furnish or cause to be furnished to the Trustee

        

        (a)     not more than
15 days after each Regular Record Date (or after each of the dates to be
specified for such purpose for non-Payment bearing Capital Securities and
Capital Securities on which Payment Dates occur less frequently than quarterly
as contemplated by Section 3.01), a list, in such form as the
Trustee

        

        
          
            
            

          

          
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        may
reasonably require, of the names and addresses of the Holders of registered
Capital Securities as of such Regular Record Date or such specified date,
and

        

        (b)     at such other
times as the Trustee may request in writing, within 30 days after the receipt by
the Company of any such request, a list of similar form and content as of a date
not more than 15 days prior to the time such list is furnished.

        

        The
Company need not furnish or cause to be furnished to the Trustee pursuant to
this Section 7.01 the names and addresses of Holders of registered Capital
Securities so long as the Trustee acts as Capital Security Registrar with
respect to such series of Capital Securities.

        

        Section
7.02.  Preservation
of Information; Communication to Holders.

        

        (a)     The
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of Holders (i) contained in the most recent list furnished
to the Trustee as provided in Section 7.01 and (ii) received by the Trustee in
its capacity as Paying Agent or Capital Security Registrar (if so acting). The
Trustee may destroy any list furnished to it as provided in Section 7.01 upon
receipt of a new list so furnished.

        

        (b)     The
rights of the Holders of Capital Securities of any series to communicate with
other Holders with respect to their rights under this Capital Securities
Indenture or under the Capital Securities, and the corresponding rights and
privileges of the Trustee, shall be as provided by the Trust Indenture
Act.

        

        (c)     Every
Holder, by receiving and holding a Capital Security, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of any of
them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders in accordance with
Section 7.02(b) or otherwise made pursuant to the Trust Indenture
Act.

        

        Section
7.03.  Reports by
Trustee.

        

        (a)     On or
before May 15 in each year following the date hereof, so long as any Capital
Securities are Outstanding hereunder, the Trustee shall transmit to Holders as
provided in the Trust Indenture Act a brief report dated as of a date required
by and in compliance with the Trust Indenture Act.

        

        (b)     A copy of
each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each securities exchange upon which the Trustee has been
notified that the Capital Securities are listed, with the Commission and with
the Company. The Company will notify the Trustee when Capital Securities are
listed on any securities exchange.

        

        
          
            
            

          

          
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        (c)     The Company
will furnish the Trustee with interim and annual reports and upon receipt
thereof, the Trustee will mail such reports to all record holders of Capital
Securities. In addition, the Company will furnish the Trustee with all notices
of meetings at which holders of Capital Securities of a particular series are
entitled to vote, and all other reports and communications that are made
generally available to holders of Capital Securities. The Trustee will, at the
Company’s expense, make such notices, reports and communications available for
inspection by holders of Capital Securities in such manner as the Company may
determine and, in the case of any notice received by the Trustee in respect of
any meeting at which holders of Capital Securities of a particular series are
entitled to vote, will mail to all such record holders of Capital Securities, at
the Company’s expense, a notice containing a summary of the information set
forth in such notice of meeting.

        

        Section
7.04.  Reports by
Company.

        

        The
Company shall:

        

        (a)     file with
the Trustee, within 15 days after the Company is required to file the same with
the Commission, copies of the annual reports and of the information, documents
and other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which the
Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of such Sections, then it
shall file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations. Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officer’s
Certificate);

        

        (b)     file with
the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information,
documents and reports with respect to compliance by the Company with the
conditions and covenants of this Capital Securities Indenture as may be required
from time to time by such rules and regulations. Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein,

        

        
          
            
            

          

          
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        including
the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on an Officer’s Certificate);
and

        

        (c)     transmit to
Holders, in the manner and to the extent required by the Trust Indenture Act,
within 30 days after the filing thereof with the Trustee, such summaries of any
information, documents and reports required to be filed by the Company pursuant
to paragraphs 7.04(a) and 7.04(b) of this Section as may be required by rules
and regulations prescribed from time to time by the Commission.

        

        

        ARTICLE
8

        CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

        

        Section
8.01.  Company May
Consolidate, Etc., Only on Certain Terms.

        

        The
Company may, without the consent of Holders of any Capital Securities of any
series Outstanding under this Capital Securities Indenture, consolidate or
amalgamate with or merge into any other corporation or convey or transfer or
lease its properties and assets substantially as an entirety to any Person,
provided
that:

        

        (a)     the
corporation formed by such consolidation or amalgamation or into which the
Company is merged or the Person which acquires by conveyance or transfer the
properties and assets of the Company substantially as an entirety (i) shall be a
company organized and existing under the laws of the United Kingdom or any
political subdivision thereof, and (ii) shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, the due and punctual payment of the principal of (and premium,
if any) and Payments and Missed Payments, if any, on all the Capital Securities
in accordance with the provisions of such Capital Securities and this Capital
Securities Indenture and the performance of every covenant of this Capital
Securities Indenture on the part of the Company to be performed or observed;
and

        

        (b)     the
Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, amalgamation, merger,
conveyance or transfer and such supplemental indenture comply with this Article
and that all conditions precedent herein provided for relating to such
transaction have been complied with.

        

        Section
8.02. Successor Corporation
Substituted. Upon any consolidation, amalgamation or merger or any
conveyance or transfer of the properties and assets of the Company substantially
as an entirety in accordance with Section 8.01, the successor corporation formed
by such consolidation or amalgamation or into which the Company is merged or to
which such conveyance or transfer is made shall succeed to and be substituted
for, and may exercise every right and power of,

         

        
          
            
            

          

          
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        the
Company under this Capital Securities Indenture with the same effect as if such
successor corporation had been named as the Company, herein, and thereafter, the
predecessor corporation shall be relieved of all obligations and covenants under
the Capital Securities Indenture, the Capital Securities and the Coupons, if
any.

        

        Section
8.03. Assumption of
Obligations. With respect to the Capital Securities of any series, a
wholly-owned subsidiary of the Company (a “successor entity”) may without the
consent of any Holder assume the obligations of the Company (or any
corporation which shall have previously assumed the obligations of the Company)
for the due and punctual payment of the principal of (and premium, if any, on)
and Payments and Missed Payments, if any, on any series of Capital Securities in
accordance with the provisions of such Capital Securities and this Capital
Securities Indenture and the performance of every covenant of this Capital
Security Indenture and such series of Capital Securities on the part of the
Company to be performed or observed provided, that:

        

        (a)     the
successor entity shall expressly assume such obligations by an amendment to the
Capital Securities Indenture, executed by the Company and such successor entity,
if applicable, and delivered to the Trustee, in form satisfactory to the
Trustee, and the Company shall, by amendment to the Capital Securities
Indenture, unconditionally guarantee (such guarantee shall be given on a
subordinated basis consistent with Article 12 hereof) all of the obligations of
such successor entity under the Capital Securities of such series and the
Capital Securities Indenture as so modified by such amendment (provided, however, that, for
the purposes of the Company’s obligation to pay Additional Amounts, if any,
payable pursuant to Section 10.04 in respect of the Capital Securities and any
related Coupons, references to such successor entity’s country of organization
will be added to references to the United Kingdom);

        

        (b)     such
successor entity shall confirm in such amendment to the Capital Securities
Indenture that such successor entity will pay all Additional Amounts, if any,
payable pursuant to Section 10.04 in respect of all the Capital Securities and
any related Coupons (provided,
however, that for these purposes such successor entity’s country of
organization will be substituted for the references to the United
Kingdom);

        

        (c)     immediately
after giving effect to such assumption of obligations, no Event of Default,
Default or Payment Event and no event which, after notice or lapse of time or
both, would become an Event of Default, Default or Payment Event, shall have
occurred and be continuing; and

        

        (d)     the
Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such assumption complies

         

        
          
            
            

          

          
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        with this
Article and that all conditions precedent herein provided for relating to such
assumption have been complied with.

        

        Upon any
such assumption, the successor entity shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Capital
Securities Indenture with respect to any such Capital Securities with the same
effect as if such successor entity had been named as the Company in this Capital
Securities Indenture, and the Company or any legal and valid successor
corporation which shall theretofore have become such in the manner prescribed
herein, shall be released from all liability as obligor upon any such Capital
Securities except as provided in clause 8.03(a) of this Section.

        

        In the
event of any such assumption, any Additional Amounts, if any, payable pursuant
to Section 10.04 will be payable in respect of taxes, levies, imposts, duties,
charges, fees, deductions or withholdings (“Taxes”) imposed by the
jurisdiction in which the assuming corporation is incorporated (subject to
exceptions equivalent to those that apply to any obligation to pay Additional
Amounts in respect of Taxes imposed by any Taxing Jurisdiction) rather than
Taxes imposed by any Taxing Jurisdiction; provided however, that if the
Company makes payment under the guarantee, the Company shall be required to pay
Additional Amounts related to Taxes (subject to the exceptions set forth in
Section 10.04) imposed by any Taxing Jurisdiction by reason of such
payments.

        

        Notwithstanding
the foregoing, the determination of whether the Solvency Condition has been
satisfied in accordance with Section 12.01(b) shall, notwithstanding such
assumption, continue to be made with reference to the Company, unless otherwise
required by applicable law or regulation.

        

        

        ARTICLE
9

        SUPPLEMENTAL INDENTURES

        

        Section
9.01.  Supplemental
Indenture without Consent of Holders. Without
the consent of any Holders, the Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of
the following purposes:

        

        (a)     to
evidence the succession of another corporation to the Company and the assumption
by any such successor of the covenants of the Company herein and in the Capital
Securities and Coupons;

        

        (b)     to add to
the covenants of the Company for the benefit of the Holders of all or any series
of Capital Securities (and, if such covenants are to be for the benefit of less
than all series of Capital Securities, stating that such

         

        
          
            
            

          

          
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        covenants
are expressly being included solely for the benefit of such series) or to
surrender any right or power herein conferred upon the Company;

        

        
          (c)      to add
any additional Events of Default, Defaults or Payment Events;

        

        

        (d)     to add
to, change or eliminate any of the provisions of this Capital Securities
Indenture, or any supplemental indenture, provided that any such change or
elimination shall become effective only when there is no Capital Security
Outstanding of any series created prior to the execution of such supplemental
indenture effecting such change or elimination which is entitled to the benefit
of such provision and adversely affected by such addition, change or
elimination;

        

        
          (e)      to secure
the Capital Securities;

        

        

        (f)     to
establish the form or terms of Capital Securities of any series and any Coupons
appertaining thereto as permitted by Sections 2.01 or 3.01;

        

        (g)     to change
any Place of Payment, so long as the Place of Payment as required by Section
3.01 is maintained;

        

        (h)     to cure
any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein or in any supplemental
indenture;

        

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

        

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

        

        (k)     to change
or eliminate any provision of this Capital Securities Indenture as permitted by
Section 1.07.

        

        Section
9.02. Supplemental Indentures
with Consent of Holders. With the consent of the Holders of not less than
66 2/3% in aggregate principal amount of the Outstanding Capital Securities of
each series affected by such supplemental Capital Securities Indenture (voting
as a class), by Act of said Holders delivered to the Company and the Trustee,
the Company, when authorized by a Board Resolution, and the Trustee may enter
into an indenture or indentures

        

        
          
            
            

          

          
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        supplemental
hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Capital Securities Indenture or of
modifying in any manner the rights of the Holders of Capital Securities of such
series under this Capital Securities Indenture; provided, however, that no such
supplemental indenture may, without the consent of the Holder of each
Outstanding Capital Security affected thereby,

        

        (a)     change
the terms of any Capital Security to include a stated maturity date of the
principal amount of any such Capital Security, reduce the principal amount of,
or any premium payable upon the redemption of, or the Payments or any Missed
Payments payable on any Capital Security, or change the obligation of the
Company (or its successor) to pay Additional Amounts pursuant to Section
10.4 (except
as contemplated by Section 8.01(a) and permitted by Section 9.01(a)) on the
Capital Securities, or the currency of payment of the principal amount of,
premium, if any, or Payments or Missed Payments on, any such Capital Security or
impair the right to institute suit for the enforcement of any such payment when
due and payable on or with respect to any Capital Security, or

        

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

        

        (c)     modify
any of the provisions of this Section 9.02 or Section 5.13 except to increase
any such percentage or to provide that certain other provisions of this Capital
Securities Indenture cannot be modified or waived without the consent of the
Holder of each Outstanding Capital Security affected thereby; provided, however, that this
clause shall not be deemed to require the consent of any Holder with respect
to changes in the references to “the Trustee” and concomitant changes in this
Section, or the deletion of this proviso, in accordance with the requirements of
Sections 6.11(b) and 9.01(j), or

        

        (d)     change in
any manner adverse to the interests of the Holders of any Capital Securities the
subordination provisions of the Capital Securities or the terms and conditions
of the obligations of the Company in respect of the due and punctual payment of
any amounts due and payable on the Capital Securities.

        

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

        

        A
supplemental indenture which changes or eliminates any covenant or other
provision of this Capital Securities Indenture which has expressly
been

         

        
          
            
            

          

          
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        included
solely for the benefit of one or more particular series of Capital Securities,
or which modifies the rights of the Holders of Capital Securities of such series
with respect to such covenant or other provision, shall be deemed not to affect
the rights under this Capital Securities Indenture of the Holders of Capital
Securities of any other series.

        

        Section
9.03. Execution of
Supplemental Indentures. In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Capital Securities
Indenture, the Trustee shall be entitled to receive, and (subject to Section
6.01) shall be fully protected in relying upon, an Opinion of Counsel stating
that the execution of such supplemental indenture is authorized or permitted by
this Capital Securities Indenture. The Trustee may, but shall not be obliged to,
enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Capital Securities Indenture or
otherwise.

        

        Section
9.04. Effect of Supplemental
Indentures. Upon the execution of any supplemental indenture under this
Article, this Capital Securities Indenture shall be modified in accordance
therewith, and such supplemental indenture shall form a part of this Capital
Securities Indenture for all purposes; and every Holder of Capital Securities
theretofore or thereafter authenticated and delivered hereunder and every holder
of Coupons, if any, shall be bound thereby, except as otherwise expressed
therein.

        

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

        

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

        

        
          
            
            

          

          
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        ARTICLE
10

        COVENANTS

        

        Section
10.01. Payment of Principal,
Premium, Payments and Missed Payments. The Company
covenants and agrees for the benefit of each series of Capital Securities that
it will duly and punctually pay the principal of (and premium or interest on, if
any) and (subject to Section 3.07) Payments and Missed Payments on, if any, the
Capital Securities of that series when due and payable in accordance with the
terms of the Capital Securities, any Coupons appertaining thereto and this
Capital Securities Indenture.

        

        Section
10.02. Maintenance of Office
or Agency. The Company will maintain in each Place of Payment for any
series of Capital Securities an office or agency where Capital Securities of
that series and any Coupons appertaining thereto may be presented or surrendered
for payment, where Capital Securities of that series may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Capital Securities of that series and any Coupons
appertaining thereto and this Capital Securities Indenture may be served; provided, however, that at
the option of the Company in the case of registered Capital Securities of such
series, payment of any Payments or Missed Payments thereon may be made by check
mailed to the address of the Person entitled herein as such address shall appear
in the Capital Security Register. With respect to the Capital Securities of any
series, such office or agency in each Place of Payment shall be specified as
contemplated by Section 3.01, and if not so specified, initially shall be the
Corporate Trust Office of the Trustee. Unless otherwise specified pursuant to
Section 3.01, the Company will maintain in the Borough of Manhattan, The City of
New York, an office or agency where notices and demands to or upon the Company
in respect of Capital Securities of any series and any Coupons appertaining
thereto and this Capital Securities Indenture may be served. The Company will
give prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee. The Company
hereby appoints the Trustee as its agent to receive all presentations,
surrenders, notices and demands.

        

        The
Company may also from time to time designate one or more other offices or
agencies (in or outside the Borough of Manhattan, The City of New York) where
the Capital Securities of one or more series and any Coupons appertaining
thereto may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations; provided, however, that no
such designation or rescission shall in any manner relieve the Company of any
obligation to maintain an office or agency in each Place of Payment (except as
otherwise indicated in this Section) for Capital Securities of any series and
any

        

        
          
            
            

          

          
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        Coupons
appertaining thereto for such purposes. The Company will give prompt written
notice to the Trustee of any such designation or rescission and of any change in
the location of any such other office or agency.

        

        Section
10.03. Money for Payments to
be Held in Trust. If the Company shall at any time act as Paying Agent
with respect to the Capital Securities of any series and any Coupons
appertaining thereto, it will, on or before each due date for payment of the
principal of (and premium, if any) or Payments or Missed Payments, if any, on
any of the Capital Securities of that series, segregate and hold in trust for
the benefit of the Persons entitled thereto a sum sufficient to pay the
principal (and premium, if any) or Payments or Missed Payments so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as herein
provided and will promptly notify the Trustee of its failure so to
act.

        

        Whenever
the Company shall have one or more Paying Agents for any series of Capital
Securities, it will, prior to each due date for payment of the principal of (and
premium, if any) or Payments or Missed Payments on any Capital Securities of
that series deposit with a Paying Agent a sum sufficient to pay the principal
(and premium, if any) or Payments or Missed Payments so becoming due, such sum
to be held in trust for the benefit of the Persons entitled to such principal,
premium or Payments or Missed Payments, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or its
failure so to act. Unless otherwise specified as contemplated by Section 3.01,
the Trustee shall be the Company’s Paying Agent. The Company will cause each
Paying Agent for any series of Capital Securities other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section, that
such Paying Agent will:

        

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

        

        (b)     give the
Trustee notice of any default by the Company (or any other obligor upon the
Capital Securities of that series) in the making of any payment, when due and
payable, or principal of (and premium, if any) or Payments or Missed Payments on
Capital Securities of that series; and

        

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

        

         

        
          
            
            

          

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

        

        

        Any money
deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of (and premium, if any) or Payments or
Missed Payments on any Capital Security of any series and remaining unclaimed
for two years after such principal (and premium, if any) or Payments or Missed
Payments have become due and payable shall be paid to the Company on Company
Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Capital Security and the holder of any Coupon
appertaining thereto shall thereafter, as an unsecured general creditor, look
only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published at least once, in an
Authorized Newspaper, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
paid to the Company.

        

        Section
10.04. Additional
Amounts. Unless otherwise specified in any Board Resolution establishing
the terms of Capital Securities of a series in accordance with Section 3.01, all
amounts of principal, and premium, if any, and Payments, including Missed
Payments, if any, on any series of Capital Securities will be paid by the
Company without deduction or withholding for, or on account of, any and all
present and future income, stamp and other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings now or hereafter imposed, levied,
collected, withheld or assessed by or on behalf of the United Kingdom or any
political subdivision or authority thereof or therein having the power to tax
(the “Taxing
Jurisdiction”), unless such deduction or withholding is required by law.
If deduction or withholding of any such taxes, levies, imposts, duties, charges,
fees, deductions or withholdings shall at any time be required by the Taxing
Jurisdiction, the Company will pay such additional amounts with respect to the
principal amount of, premium, if any, Payments and Missed Payments, on any
series of Capital Securities (“Additional Amounts”) as may be
necessary in order that the net amounts paid to the Holders of Capital
Securities of the particular series, after such deduction or withholding, shall
equal the respective amounts of principal, premium, if any, and Payments and
Missed Payments, if any, which would have been payable in respect of such
Capital Securities had no such deduction or withholding been required; provided, however, that the
foregoing

        
 

        
          
            
            

          

          
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        will not
apply to any such tax, levy, impost, duty, charge, fee, deduction or withholding
which would not have been payable or due but for the fact that:

        

        (i)
     the
Holder or the beneficial owner of the Capital Security is a domiciliary,
national or resident of, or engaging in business or maintaining a permanent
establishment or physically present in, the Taxing Jurisdiction or otherwise has
some connection with the Taxing Jurisdiction other than the holding or ownership
of a Capital Security, or the collection of any payment of (or in respect of)
principal of, premium, if any, or any Payments or Missed Payments on any Capital
Security of the relevant series;

        

        (ii)     except in
the case of a winding-up of the Company in the United Kingdom, the relevant
Capital Security is presented (where presentation is required) for payment in
the United Kingdom;

        

        (iii)    the
relevant Capital Security is presented (where presentation is required) for
payment more than 30 days after the date payment became due or was provided for,
whichever is later, except to the extent that the Holder would have been
entitled to such Additional Amount on presenting (where presentation is
required) the same for payment at the close of such 30 day period;
or

        

        (iv)    the
Holder or the beneficial owner of the relevant Capital Security or the
beneficial owner of any payment of (or in respect of) principal of, or any
Payments or Missed Payments on such Capital Security failed to comply with a
request of the Company or its liquidator or other authorized person addressed to
the Holder (x) to provide information concerning the nationality, residence or
identity of the Holder or such beneficial owner or (y) to make any declaration
or other similar claim to satisfy any information requirement, which in the case
of (x) or (y), is required or imposed by a statute, treaty, regulation or
administrative practice of the Taxing Jurisdiction as a precondition to
exemption from all or part of such tax, assessment or other governmental
charge;

        

        (v)     the
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 November
26-27, 2000 or any law implementing or complying with, or introduced in order to
conform to, such directive;

        

        (vi)    the
relevant Capital Security is presented (where presentation is required) for
payment by or on behalf of a holder who would have been able to avoid such
withholding or deduction by

        

        
          
            
            

          

          
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        presenting
(where presentation is required) the relevant Capital Security to another paying
agent in a Member State of the European Union; or

        

        (vii)
   any
combination of subclauses (i) through (vi) above;

        

        nor shall
Additional Amounts be paid with respect to the principal of, and payments and
Missed Payments on, the Capital Securities to any holder who is a fiduciary or
partnership or settlor with respect to such fiduciary or a member of such
partnership other than the sole beneficial owner of such payment to the extent
such payment would be required by the laws of any Taxing Jurisdiction to be
included in the income for tax purposes of a beneficiary or partner or settlor
with respect to such fiduciary or a member of such partnership or a beneficial
owner who would not have been entitled to such Additional Amounts, had it been
the holder.

        

        Whenever
in this Capital Securities Indenture there is mentioned, in any context, the
payment of the principal of (and premium, if any) or any Payments, or Missed
Payments, if any, on, or in respect of, any Capital Security of any series such
mention shall be deemed to include mention of the payment of Additional Amounts
provided for in this Section to the extent that, in such context, Additional
Amounts are, were or would be payable in respect thereof pursuant to the
provisions of this Section and as if express mention of the payment of
Additional Amounts (if applicable) were made in any provisions hereof where such
express mention is not made.

        

        Section
10.05. Corporate
Existence. Subject to Article 8, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate
existence.

        

        Section
10.06. Statement as to
Compliance. The Company will deliver to the Trustee, within 120 days
after the end of each fiscal year, a certificate in compliance with Section
314(a)(4) of the Trust Indenture Act.

        

        ARTICLE
11

        REDEMPTION OF CAPITAL SECURITIES

        

        Section
11.01. Applicability of
Article. Capital Securities of any series shall be redeemable in
accordance with their terms and (except as otherwise specified pursuant to
Section 3.01 for Capital Securities of any series) in accordance with this
Article.

        

        
          
            
            

          

          
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        Section
11.02. Election to Redeem;
Notice to Trustee. The election of the Company to redeem any Capital
Securities shall be evidenced by a Board Resolution. The Company shall, at least
60 days prior to the Redemption Date fixed by the Company (unless a shorter
notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date, of the principal amount of Capital Securities of such series to
be redeemed and, if applicable, the tenor of the Capital Securities to be
redeemed. In the case of any redemption of Capital Securities of any series
prior to the expiration of any provision restricting such redemption provided in
the terms of such Capital Securities or elsewhere in this Capital Securities
Indenture, the Company shall furnish the Trustee with respect to such Capital
Securities with an Officer’s Certificate evidencing compliance with or waiver of
such provision.

        

        Section
11.03.  Selection by
Trustee of Capital Securities to be Redeemed. If less
than all the Capital Securities of any series are to be redeemed, the particular
Capital Securities to be redeemed shall be selected not more than 60 days nor
less than 30 days prior to the Redemption Date by the Trustee, from the
Outstanding Capital Securities of such series not previously called for
redemption, by such method as the Trustee shall deem fair and appropriate and
which may provide for the selection for redemption of portions (equal to the
minimum authorized denomination for registered Capital Securities of that series
or any multiple thereof) of the principal amount of Capital Securities of such
series of a denomination larger than the minimum authorized denomination for
Capital Securities of that series.

        

        The
Trustee shall promptly notify the Company in writing of the Capital Securities
selected for redemption and, in the case of any Capital Securities selected for
partial redemption, the principal amount thereof to be redeemed.

        

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

        

        Section
11.04. Notice of
Redemption. Notice of redemption shall be given not less than 30 nor more
than 60 days prior to the Redemption Date to each Holder of Capital Securities
to be redeemed in the manner and to the extent provided in Section
1.06.

        

        All
notices of redemption shall state:

        

        
          (a)    the
Redemption Date,

        

        

        
          (b)    the
Redemption Price,

        

        

        
          
            
            

          

          
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        (c)     if less
than all the Outstanding Capital Securities of any series are to be redeemed,
the principal amount of the Capital Securities to be redeemed,

        

        (d)     that on
the Redemption Date the Redemption Price will, subject to the Solvency
Condition, become due and payable upon each such Capital Security to be redeemed
and, if applicable, that Payments thereon will cease to accrue on or after the
said date,

        

        (e)     the place
or places where such Capital Securities are to be surrendered for payment of the
Redemption Price and that, unless otherwise specified in such notice, bearer
Capital Securities in definitive form (if any) surrendered for payment must be
accompanied by all Coupons maturing subsequent to the Redemption Date, failing
which the amount of any such missing Coupon or Coupons will be deducted from the
sum due for payment, and

        

        (f)     the
CUSIP, Common Code and/or ISIN number or numbers, if any, with respect to such
Capital Securities.

        

        Notice of
redemption of Capital Securities to be redeemed at the selection of the Company
shall be given by the Company or, at the Company’s Request, by the Trustee in
the name and at the expense of the Company.

        

        Section
11.05. Deposit of Redemption
Price. On or prior to any Redemption Date, the Company shall deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as Paying
Agent, segregate and hold in trust as provided in Section 10.03) an amount of
money sufficient to pay the Redemption Price of, and (except if the Redemption
Date shall be a Payment Date) accrued but unpaid Payments (and any Missed
Payments accumulated to such Redemption Date) on, all the Capital Securities
which are to be redeemed on that date.

        

        Section
11.06. Capital Securities
Payable on Redemption Date. Notice of redemption having been given as
aforesaid, the Capital Securities so to be redeemed shall, on the Redemption
Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the
Redemption Price and Payments and Missed Payments, if any) such Capital
Securities shall cease to accrue Payments for the period following the
Redemption Date. Upon surrender of any such Capital Security for redemption in
accordance with said notice, such Capital Security shall be paid by the Company
at the Redemption Price, together with accrued but unpaid Payments to the
Redemption Date and Missed Payments, if any, accumulated to the Redemption Date;
provided, however, that
with respect to any Capital Securities in registered form, unless otherwise
specified as contemplated by Section 3.01, a Payment which is payable on a
Payment Date which is the Redemption Date, shall be payable to the Holders of
such Capital

         

        
          
            
            

          

          
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        Securities,
or one or more Predecessor Securities, registered as such at the close of
business on the relevant Regular Record Dates according to the terms of the
Capital Securities and the provisions of Section 3.07. Capital Securities in
definitive form shall be presented for redemption to the Paying Agent. The
obligation of the Company to redeem Capital Securities of a series on a
Redemption Date shall be subject to the Solvency Condition.

        

        If any
Capital Security called for redemption shall not be so paid upon surrender
thereof for redemption, the Capital Security shall, until paid, continue to
accrue Payments from and after the Redemption Date in accordance with its terms
and the provisions of Section 3.07.

        

        Section
11.07. Capital Securities
Redeemed In Part. Any Capital Security which is to be redeemed only in
part shall be surrendered at a Place of Payment therefor (with, only in the case
of Capital Securities in registered form, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or his attorney duly authorized in writing), and the Company shall execute, and
the Trustee shall authenticate and deliver to the Holder of such Capital
Security without service charge, a new Capital Security or Capital Securities of
the same series of any authorized denomination as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Capital Security so surrendered.

        

        Section
11.08.  Optional
Redemption Due To Changes In Tax Treatment. Unless
otherwise provided as contemplated by Section 3.01 with respect to any series of
Capital Securities and subject to satisfaction of the Solvency Condition, the
Capital Securities are redeemable, as a whole but not in part, at the option of
the Company, on not less than 30 nor more than 60 days’ notice, on any Payment
Date, at a redemption price equal to 100% of the principal amount, together with
accrued but unpaid Payments and all Missed Payments, if any, in respect of such
series of Capital Securities to the date fixed for redemption, if, at any time,
the Company shall determine that, as a result of a change in or amendment to the
laws or regulations of the Taxing Jurisdiction (including any treaty to which
such Taxing Jurisdiction is a party), or any change in the official application
or interpretation of such laws or regulations (including a decision of any court
or tribunal) which change or amendment becomes effective on or after a date
included in the terms of such series of Capital Securities pursuant to Section
3.01:

        

        (a)     in making
payment under the Capital Securities in respect of principal or premium, if any,
or Payments (including Missed Payments) it has or will or would on the next
Payment Date become obligated to pay Additional Amounts;

        

        
          
            
            

          

          
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        (b)     Payments
(including Missed Payments) on the next Payment Date in respect of any of the
Capital Securities would be treated as “distributions” within the meaning of
Section 209 of the Income and Corporation Taxes Act 1988 of the United Kingdom
(or any statutory modification or re-enactment thereof for the time being);
or

        

        (c)     on the
next Payment Date the Company would not be entitled to claim a deduction in
respect of such Payments in computing its United Kingdom taxation liabilities
(or the value of such deduction to the Company would be materially
reduced).

        

        In any
case where the Company shall determine that as a result of any change in the
official application or interpretation of any laws or regulations it is entitled
to redeem the Capital Securities of any series the Company shall be required to
deliver to the Trustee prior to the giving of any notice of redemption a written
legal opinion of independent United Kingdom counsel of recognized standing
(selected by the Company) in a form satisfactory to the Trustee confirming that
the relevant change in the official application or interpretation of such laws
or regulations has occurred and that the Company is entitled to exercise its
right of redemption.

        

        

        ARTICLE
12

        SUBORDINATION OF CAPITAL SECURITIES

        

        Section
12.01.  Capital
Securities Subordinate to Senior Claims.

        

        (a)     The Company
covenants and agrees, and each Holder of Capital Securities of each series and
each holder of Coupons appertaining thereto, by his acceptance thereof, likewise
covenants and agrees, that, to the extent and in the manner hereinafter set
forth in this Article 12, the Capital Securities of such series and the payment
of the principal of, premium, if any, and Payments, and Missed Payments, if any,
on each and all of the Capital Securities of such series are hereby expressly
made in the event of a winding up of the Company subordinate and subject in
right of payment to the prior payment in full of all Senior Claims and, except
in a winding-up, conditional upon the Solvency Condition being satisfied at the
time of payment by the Company, and no principal, premium, if any, Payments or
Missed Payments, if any, in respect of the Capital Securities of such series
which under the terms of such series or the provisions of this Capital
Securities Indenture would otherwise be due for payment when the Solvency
Condition is not satisfied shall be due and payable (without prejudice to the
provision of Section 5.03 with respect to a Payment Event), and instead such
principal, premium, if any, Payments or Missed Payments, if any, will become due
and payable only if and when and to the extent that the Company could make such
payment in whole or in part and still satisfy the Solvency Condition

         

        
          
            
            

          

          
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        immediately
thereafter. In a winding-up, the amount payable in respect of the Capital
Securities is determined in accordance with the provisions of Section
12.01(c).

        

        (b)     No
payment of principal, premium, if any, Payments or Missed Payments, if any, in
respect of the Capital Securities of any series and no purchase of any Capital
Securities of any series beneficially by or for the account of the Company or
any of its Subsidiaries (other than a purchase in connection with dealing in
securities) shall be made unless a director of the Company or (in the case of
the optional redemption by the Company of all or some of the Capital Securities
of the series or a purchase of any Capital Securities of the series as aforesaid
or if a director of the Company has not reported as mentioned below) the
Auditors shall have reported to the Trustee within 14 days before such payment
or within 6 months before such purchase that in their opinion or, as the case
may be, his opinion, the Solvency Condition would be satisfied both at the time
of and immediately after such payment or purchase. Any such report shall, in the
absence of manifest error, be treated and accepted by the Company, the Trustee,
the Holders and holders of Coupons as correct and sufficient evidence of such
satisfaction of the Solvency Condition.

        

        (c)     If at any
time an order is made or a shareholders’ resolution is passed for the winding-up
of the Company, there shall be payable with respect to the Capital Securities of
any series, such amounts, if any, as would have been payable in respect thereof
as if, on the day immediately prior to the commencement of the winding-up and
thereafter, the Holders of the Capital Securities were the holders of preference
shares in the capital of the Company having a preferential right to a return of
assets in a winding-up over the holders of all other issued shares (including
all classes of preference shares of the Company) for the time being in the share
capital of the Company, on the assumption that such preference shares were
entitled (to the exclusion of all other rights or privileges) to receive as a
return of capital in such winding up an amount equal to the principal amount of
the Capital Securities of such series then Outstanding together with any
premium, all Payments accrued to the date of repayment at the rate provided for
in the Capital Securities of that series and any Missed Payments and subject in
right of payment to the prior payment in full to all Senior Claims of the
Company.

        

        (d)     The
provisions of this Section shall apply only to the payment of principal,
premium, if any, Payments and Missed Payments, if any, in respect of the Capital
Securities of any series and nothing herein shall affect or prejudice the
payment of the costs, charges, expenses, liabilities or remuneration of the
Trustee or the rights and remedies of the Trustee in respect
thereof.

        

        
 

        
          
            
            

          

          
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          (e)     The
provisions of this Section shall not be applicable to any amounts of principal,
premium, if any, or Payments or Missed Payments, if any, in respect of the
Capital Securities of any series for the payment of which funds have been
deposited in trust with the Trustee or any Paying Agent or have been set aside
by the Company in trust in accordance with the provisions of this Capital
Securities Indenture; provided, however, that at
the time of such deposit or setting aside, and immediately thereafter, the
foregoing provisions of this Section are complied with.

        

        

        Section
12.02. Provisions Solely to
Define Relative Rights. The provisions of this Article 12 are and are
intended solely for the purpose of defining the relative rights of the Holders
of the Capital Securities of each series and the holders of the Coupons
appertaining thereto, if any, on the one hand and the Senior Creditors on the
other hand. Nothing contained in this Article or elsewhere in this Capital
Securities Indenture or in such Capital Securities is intended to or shall (a)
impair, as among the Company and the Holders of the Capital Securities and any
Coupons, the obligation of the Company, which is absolute and unconditional, to
pay to the holders of such claims the principal of, premium, if any, and
Payments, or Missed Payments, if any, on such Capital Securities as and when the
same shall become due and payable in accordance with their terms and this
Capital Securities Indenture; or (b) affect the relative rights against the
Company of the Holders of such Capital Securities and of such Coupons; or (c)
prevent the Trustee or the Holder of any Capital Securities of the series or the
holder of any such Coupon from exercising all remedies otherwise permitted by
applicable law upon default under this Capital Securities Indenture, subject to
the rights, if any, under this Article of the Senior Creditors to receive cash,
property or securities otherwise payable or deliverable to the Trustee or such
holder.

         

        Section
12.03. Trustee to Effectuate
Subordination. Each Holder of a Capital Security and each holder of any
Coupon by his acceptance thereof authorizes and directs the Trustee on his
behalf to take such action as may be necessary or appropriate to effectuate the
subordination of the Capital Securities provided in this Article 12 and appoints
the Trustee his attorney-in-fact for any and all such purposes.

        

        Section
12.04. No Waiver of
Subordination Provisions. No right of any present or future Senior
Creditors to enforce subordination as herein provided shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of the
Company or by any act or failure to act, in good faith, by any such Senior
Creditor or by any noncompliance by the Company with the terms, provisions and
covenants of this Capital Securities Indenture, regardless of any knowledge
thereof any such Senior Creditor may have or be otherwise charged
with.

        

        Section
12.05. Notice to
Trustee. Upon the occurrence of any Event of Default, Default or Payment
Event, the Company shall give prompt written notice to the Trustee of any fact
known to the Company which would prohibit the

         

        
          
            
            

          

          
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        making of
any payment when due to or by the Trustee in respect of the Capital Securities
of a series. Notwithstanding the provisions of this Article or any other
provisions of this Capital Securities Indenture but subject to the provisions of
Section 12.01, the Trustee shall not be charged with knowledge of the existence
of any facts which would prohibit the making of any payment when due to or by
the Trustee in respect of such Capital Securities unless and until the Trustee
shall have received written notice thereof from the Company or a Senior Creditor
or from any trustee therefor; and, prior to the receipt of any such written
notice by a Responsible Officer of the Trustee, the Trustee, subject to the
provisions of Section 6.01, shall be entitled in all respects to assume that no
such facts exist; provided,
however, that if the Trustee shall not have received the notice
provided for in
this Section at least three Business Days prior to the date upon which by the
terms hereof any money may become payable for any purpose (including, without
limitation, the payment of the principal of and any premium and Payments, or
Missed Payments, if any, on any Capital Security), then, subject to the
provisions of Section 12.01, the Trustee shall have full power and authority to
receive such money and to apply the same to the purpose for which such money was
received and shall not be affected by any notice to the contrary which may be
received by it within three Business Days prior to such date.

        

        Subject
to the provisions of Section 6.01, the Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a
Senior Creditor or a trustee therefor, to establish that such notice has been
given by a Senior Creditor, or a trustee therefor. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a Senior Creditor to participate in any payment or
distribution pursuant to this Article, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of claims held by such Person, and if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

        

        Section
12.06. Reliance on Judicial
Order or Certificate of Liquidating Agent . Upon any payment or
distribution of assets of the Company referred to in this Article, the
Trustee, subject to the provisions of Section 6.01, the Holders of the Capital
Securities of the series and the holders of the Coupons appertaining thereto
shall be entitled to rely upon (i) any order or decree entered by any court in
Scotland (but not elsewhere) in which such winding-up of the Company or similar
case or proceeding, including a proceeding for the suspension of payments under
Scottish law, is pending, or (ii) a certificate of the liquidator of the Company
(the “Liquidator”),
assignee for the benefit of creditors, agent or other person making such payment
or distribution, delivered to the Trustee, the Holders of such Capital
Securities or holders of such Coupons, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the Senior
Creditors and other claims against the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article 12.

        
 

        
          
            
            

          

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

        

        Section
12.08. Rights of Trustee as
Senior Creditor; Preservation of Trustee’s Rights. The Trustee
in its individual capacity shall be entitled to all the rights set forth in
this Article with respect to any claims of Senior Creditors which may at any
time be held by it, to the same extent as any other Senior Creditor, and nothing
in this Capital Securities Indenture shall deprive the Trustee of any of its
rights as such holder.

        

        Nothing
in this Article shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.07.

        

        Section
12.09. Article Applicable to
Paying Agents. At all times when a Paying Agent other than the Trustee
shall have been appointed by the Company and be then acting hereunder, the term
“Trustee” as used in
this Article shall in such case (unless the context otherwise requires) be
construed as extending to and including such Paying Agent within its meaning as
fully for all intents and purposes as if such Paying Agent were named in this
Article in addition to or in place of the Trustee; provided, however, that
Section 12.08 shall not apply to the Company or any Affiliate of the Company if
it or such Affiliate acts as Paying Agent.

        

        Section
12.10. Exchanges Not Deemed
Payment. For the purposes of this Article 12 only, delivery of Dollar
Preference Shares or Exchange Securities upon exchange of Capital Securities in
accordance with Article 13, if applicable to a particular series of Capital
Securities, shall not be deemed to constitute a payment or distribution on
account of the principal of Capital Securities or on account of the purchase or
other acquisition of Capital Securities. Nothing contained in this Article or
elsewhere in this Capital Securities Indenture or in the Capital Securities is
intended to or shall impair, as among the Company, its creditors and the Holders
of the Capital Securities and holders of Coupons, the right, which if applicable
to a particular series of Capital Securities is absolute and unconditional, of
the Company to exchange the Capital Securities in accordance with Article
13.

        

        
          
            
            

          

          
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        ARTICLE
13

        EXCHANGE OF CAPITAL SECURITIES

        

        Section
13.01. Applicability of
Article. If specified pursuant to Section 3.01 for Capital Securities of
any series, the Capital Securities of any series shall be convertible
(conversion being referred to herein as “exchange”) on any Payment Date
as a whole or in part, at the option of the Company, on the basis of the
principal amount of each Capital Security, into an equivalent amount in
liquidation preference of the series of Dollar Preference Shares or Exchange
Securities specified pursuant to Section 3.01 and (except as otherwise specified
as contemplated by Section 3.01 for Capital Securities of any series) in
accordance with this Article 13.

        

        Section
13.02. Election to Exchange;
Notice to Trustee. An election of the Company to exchange Capital
Securities shall be evidenced by an Officer’s Certificate furnished to the
Trustee stating that the Company is entitled to effect such exchange and setting
forth a statement of facts demonstrating the same.

        

        Section
13.03. Notice of
Exchange. Not less than 45 days nor more than 60 days prior to any date
fixed for exchange of Capital Securities of a series (the “Exchange Date”), the Company
shall notify the Trustee in writing of its election to exchange the Capital
Securities of such series. The Trustee shall within 15 days after receipt of
notice from the Company, but in no event less than 30 days nor more than 60 days
prior to the Exchange Date, cause notice of such election to be (i) published if
Outstanding bearer definitive Capital Securities are affected, (ii) mailed to
the Holder (if the address of such Holder is known to the Trustee) if the
affected Capital Securities are in global form, or (iii) mailed to each Holder
of registered Capital Securities of such series to be exchanged in accordance
with Section 1.06.

        

        All
notices of exchange shall state:

        

        
          (a)    the
Exchange Date;

        

        

        (b)    that on
the Exchange Date, the Capital Securities to be exchanged will cease to exist
for any purpose on or after such Exchange Date;

        

        (c)     if less
than all the Outstanding Capital Securities of any series are to be exchanged,
the identification of the particular Capital Securities to be exchanged, which
Capital Securities shall be selected by the Trustee, from the Outstanding
Capital Securities of such series not previously called for exchange, by such
method as the Trustee shall deem fair and appropriate and which may provide for
the selection for exchange of portions (equal to the minimum authorized
denomination for Capital Securities of that series or any multiple thereof) of
the principal amount of Capital Securities of such series of a denomination
larger than the minimum authorized denomination for Capital Securities of that
series;

         

        

        
          
            
            

          

          
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        (d)     the place
or places where such Capital Securities are to be surrendered for exchange;
and

        

        (e)     the form
in which the Company will issue the Dollar Preference Shares (if not as a single
share warrant to bearer delivered to the ADR Depositary) or Exchange
Securities.

        

        Notice of
any exchange of Capital Securities at the election of the Company shall be given
by the Company or, pursuant to a Company Request by the Trustee, in the name of
and at the expense of the Company.

        

        Section
13.04. Deposit of
Payments. Prior to any Exchange Date, the Company shall deposit with the
Trustee an amount of money sufficient to pay accrued Payments to the Exchange
Date plus Missed Payments, if any, accumulated to the Exchange Date on all
Capital Securities of such series.

        

        Section
13.05. Surrender of Capital
Securities. Any Capital Security which is to be exchanged shall be
surrendered at an office or agency of the Company designated for that purpose
pursuant to Section 10.02 not less than 10 days prior to the Exchange Date
(with, only in the case of registered Capital Securities and if the Company or
the Trustee so requires, due endorsement by, or a written instrument of transfer
in form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing) accompanied by written
notice specifying the Persons (i) in the case of Dollar Preference Shares, to
whom ADRs should be issued by the ADR Depositary or, if the Company has notified
the Trustee in accordance with Section 13.03 that it will issue Dollar
Preference Shares in definitive form, any direction the Holder may wish to make
as referred to in Section 13.06 or (ii) in the case of Exchange Securities, to
whom such Exchange Securities are to be issued. The Trustee will inform the
Company of all such notices and the Company will, if applicable, direct the ADR
Depositary accordingly under the terms of the ADR Deposit Agreement. Capital
Securities surrendered for exchange shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee for delivery by it to the Company
or, if delivered to the Trustee, shall be delivered by it to the
Company.

        

        Section
13.06. Issuance of Dollar
Preference Shares or Exchange Securities. On the Exchange
Date with respect to Global Securities of a series, and on or prior to the
Exchange Date with respect to definitive Capital Securities of a series, in each
case surrendered for exchange as provided in Section 13.05, the Company shall
(i) in the case of Dollar Preference Shares, unless the Company shall have
notified the Trustee otherwise in accordance with Section

        
 

        
          
            
            

          

          
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        13.03,
deliver or procure the delivery of a single share warrant to bearer to the ADR
Depositary representing all of the Dollar Preference Shares in respect of which
such Capital Securities are to be exchanged in accordance with the provisions of
this Article 13 or (ii) in the case of Exchange Securities, deliver or procure
the delivery of the Exchange Securities to the Trustee or to such other Person
as may be specified pursuant to Section 3.01.

        

        In the
event that the Company shall have notified the Trustee in accordance with
Section 13.03 that it will not deliver a single share warrant to bearer in
exchange for the Capital Securities of a series surrendered for exchange as
provided in Section 13.05, the Company shall, on or prior to the Exchange Date,
with respect to definitive Capital Securities, deliver or procure the delivery
of individual certificates representing the Dollar Preference Shares (or the
rights to receive such Dollar Preference Shares) of such series for which such
Capital Securities are to be exchanged in accordance with the provisions of this
Article 13, in the case of Dollar Preference Shares in registered form, to and
registered in the names of the Holders of such Capital Securities in definitive
form as they appear on the Capital Security Register or, at the direction of
such Holder, in the name of the ADR Custodian for the account and benefit of the
ADR Depositary who will issue ADRs evidencing ADSs representing the Dollar
Preference Shares to such Holder and, in the case of Dollar Preference Shares in
bearer form, to the bearer of the bearer Capital Security in definitive form or,
at the direction of such bearer, to the ADR Custodian for the account and
benefit of the ADR Depositary who will issue ADRs evidencing ADSs representing
Dollar Preference Shares to such Holder.

        

        Any
exchange pursuant to this Section 13.06 shall be deemed to have been made
immediately prior to the close of business in New York on the Exchange
Date.

        

        Section
13.07. Effect of
Exchange. Notice of exchange having been given as aforesaid, the Capital
Securities so to be exchanged shall on the Exchange Date cease to exist for any
purpose. Upon surrender of any such Capital Security for exchange in accordance
with the said notice and this Article 13, accrued Payments on such Capital
Security to the Exchange Date plus Missed Payments, if any, accumulated to the
Exchange Date shall be paid by the Company to the Holder surrendering such
Capital Security including any such Coupons for Payments and Missed Payments.
Such payment shall be a condition to the exchange and no exchange shall occur
unless such payments are made.

        

        On and
after the Exchange Date for Capital Securities of a particular series, each
Capital Security of the series to be exchanged, until surrendered shall be
deemed to evidence rights to receive Dollar Preference Shares or Exchange
Securities of the relevant series with a liquidation preference equivalent to
the principal amount of such Capital Security. Until a Holder has surrendered
such

        
 

        
          
            
            

          

          
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        Capital
Security upon such exchange, such Holder shall be entitled to receive dividends,
payments or other distributions in respect of such Dollar Preference Shares or
Exchange Securities and shall have the same rights with respect to, and shall be
deemed to be the Holder of, such Dollar Preference Shares or Exchange Securities
into which such Capital Security was exchanged as if it had so surrendered such
Capital Security.

        

        Section
13.08. Validity of Dollar
Preference Shares or Exchange Securities. The Company will
take all corporate and other action which may be necessary in order that
it may validly and legally issue Dollar Preference Shares or Exchange Securities
upon each exchange of the Outstanding Capital Securities. The Company covenants
that the Dollar Preference Shares or Exchange Securities will when issued upon
such exchange be duly authorized and validly issued, fully paid and not subject
to calls for further funds.

        

        Section
13.09. Legal and Regulatory
Compliance. Notwithstanding any provision of this Capital Securities
Indenture to the contrary, the right of the Company to cause any exchange of
Capital Securities of a series for Dollar Preference Shares or Exchange
Securities on any proposed Exchange Date shall be subject to the fulfillment of
the following conditions with respect to such Capital Securities:

        

        (a)     as of
such Exchange Date, there are no accrued but unpaid Payments and there are no
Missed Payments (including amounts paid on the Exchange Date);

        

        (b)     as of
such Exchange Date, no Default or Event of Default or Payment Event shall have
occurred and be continuing with respect to the particular series of Capital
Securities;

        

        (c)     as of
such Exchange Date, there has not been, in any one instance or in the aggregate,
an adverse effect on the rights, powers, privileges, validity or enforceability
of the Dollar Preference Shares or Exchange Securities;

        

        (d)     the
Dollar Preference Shares to be issued on such Exchange Date shall be duly
authorized and reserved for issuance upon such exchange and, when issued upon
such exchange, will be fully paid and not subject to calls for further
funds;

        

        (e)     no
consents, authorizations, approvals or exemptions, except in each case such as
shall have been obtained, will be required prior to such Exchange Date for the
issuance and delivery of the Dollar Preference Shares or Exchange Securities to
be issued upon such exchange;

        

        
          
            
            

          

          
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        (f)     the
issuance and delivery of the Dollar Preference Shares or Exchange Securities to
be issued on such Exchange Date shall not violate (x) the Articles of
Association of the Company or (y) any law, rule or regulation applicable to the
Company; and

        

        (g)     there
shall not have occurred any change in law in Scotland, or any amendment of the
Articles of Association of the Company, prior to such Exchange Date, materially
and adversely affecting the rights and privileges attached to the Dollar
Preference Shares or Exchange Securities (including, without limitation, the
rights of the holders thereof in the event of a bankruptcy or other similar
proceeding with respect to the Company) or such holders’ access to the courts of
the United Kingdom and other applicable governmental authorities to enforce such
rights.

        

        Section
13.10. Taxes and
Charges. The issuance or delivery of Dollar Preference Shares or Exchange
Securities upon exchange of Capital Securities pursuant to this Article 13 shall
be made without charge to the exchanging Holder of Capital Securities for such
Dollar Preference Shares or Exchange Securities or for any tax or other
governmental charge (other than income or capital gains taxes) in respect of the
issuance or delivery of such Dollar Preference Shares or Exchange Securities;
provided, however, that
the Company shall not be required to pay any tax or other governmental charge
which may be payable in respect of (i) issuance or delivery of Dollar Preference
Shares or Exchange Securities to any Person who is or is a nominee or agent for
a Person whose business is or includes the provision of clearance services
within the meaning of Section 96 or Section 70 of the Finance Act 1986 or whose
business is or includes issuing depositary receipts within the meaning of
Section 93 or Section 67 of the Finance Act 1986, other than the ADR Depositary
or ADR Custodian, all such Persons (other than the ADR Depositary and the ADR
Custodian) being “Excepted
Persons” or (ii) a transfer involved in the issuance and delivery of any
such Dollar Preference Share or Exchange Securities to any Person other than any
Holder (not being an Excepted Person) of the Capital Security to be exchanged,
or in the case of Global Securities, the ADR Depositary or the ADR Custodian,
and the Company shall not be required to issue or deliver or procure the
delivery of such Dollar Preference Shares or Exchange Securities unless and
until the Person requesting the issuance or delivery thereof shall have paid to
the Company the amount of such tax or other governmental charge or shall have
established to the satisfaction of the Company that such tax or other
governmental charge has been paid.

        

        Section
13.11. Trustee Not
Liable. The Trustee shall not be accountable with respect to the validity
or value (or the kind or amount) of any Dollar Preference Shares or Exchange
Securities which may be issued or delivered upon the exchange of any Capital
Security pursuant to this Article 13, and makes no representation with respect
thereto. The Trustee shall not be responsible for any failure of the Company to
issue, transfer or deliver or procure the delivery of any

        

        
          
            
            

          

          
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        Dollar
Preference Shares or Exchange Securities upon the surrender of any Capital
Security for the purpose of exchange pursuant to this Article 13 or to comply
with any of the covenants of the Company or conditions contained in this Article
13.

        

        

        

        

        

        
          
            
            

          

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

        

        IN
WITNESS WHEREOF, the Company and the Trustee have caused this Capital Securities
Indenture to be duly executed, all as of the day and year first above
written.

         

         

        
          
            	 	
                    THE
      ROYAL BANK OF SCOTLAND GROUP plc

                  	 
	 	 	 	 	 
	 	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ 	 
	 	 	Name: 	 	 
	 	 	Title: 	 	 
	 	 	 	 	 

          

        

         

        
          
            
              	 	
                      
                        THE
      BANK OF NEW YORK MELLON, LONDON BRANCH

                      

                    	 
	 	 	 	 	 
	 	 	 	 	 
	
                       

                    	
                      By:
      

                    	/s/ 	 
	 	 	Name: 	 	 
	 	 	Title: 	 	 
	 	 	 	 	 

            

          

          
 

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	UNITED KINGDOM OF
      GREAT BRITAIN      	)   ss.:	 
	 	 	 
	CITY OF EDINBURGH,
      SCOTLAND  	)	 

        

        

        On the
_________ day of _____________ 2009, before me,  ________________________________,
Notary Public of the City of Edinburgh, Scotland duly admitted and sworn,
personally came _______________________________,
to me known, who, being by me duly sworn, did depose and say that he is
____________________ of THE ROYAL BANK OF SCOTLAND GROUP plc, one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation, and that he signed his name thereto by like
authority.

        
           

          
            
              	 	 	 	 
	
                       

                    	
                       

                    	 	 
	 	 	
                      A
      Notary Public of Edinburgh, Scotland. 

                      My
      Commission expires with life.

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