Document:

Exhibit 4.1

LLOYDS BANKING GROUP PLC
as Issuer

TO

THE BANK OF NEW YORK MELLON
as Trustee

FORM OF INDENTURE

Senior Debt Securities

LLOYDS BANKING GROUP plc

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Trust Indenture

 Act Section

 	
  

 	
  

 	
 Senior 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

 
	
 §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

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Trust Indenture

 Act Section

 	
  

 	
  

 	
 Senior Debt Securities

 Indenture Section

 
	

 

 	
  

 	
  

 	

 

 
	
 §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 Senior Debt Securities Indenture.

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
 	
  
 	
 9
 
	
 Section 1.03.
 	
 Form of Documents Delivered to Trustee
 	
  
 	
 9
 
	
 Section 1.04.
 	
 Acts of Holders
 	
  
 	
 10
 
	
 Section 1.05.
 	
 Notices, Etc. to Trustee and Company
 	
  
 	
 11
 
	
 Section 1.06.
 	
 Notice to Holders; Waiver
 	
  
 	
 11
 
	
 Section 1.07.
 	
 Conflict with Trust Indenture Act
 	
  
 	
 12
 
	
 Section 1.08.
 	
 Effect of Headings and Table of Contents
 	
  
 	
 12
 
	
 Section 1.09.
 	
 Successors and Assigns
 	
  
 	
 12
 
	
 Section 1.10.
 	
 Separability Clause
 	
  
 	
 12
 
	
 Section 1.11.
 	
 Benefits of Senior Debt Securities
 Indenture
 	
  
 	
 12
 
	
 Section 1.12.
 	
 Governing Law
 	
  
 	
 12
 
	
 Section 1.13.
 	
 Saturdays, Sundays and Legal Holidays
 	
  
 	
 13
 
	
 Section 1.14.
 	
 Appointment of Agent for Service
 	
  
 	
 13
 
	
 Section 1.15.
 	
 Calculation Agent
 	
  
 	
 14
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE 2
 	
  
 	
  
 
	
 Senior Debt Security Forms
 	
  
 	
  
 
	
  
 	
  
 	
  
 
	
 Section 2.01.
 	
 Forms Generally
 	
  
 	
 14
 
	
 Section 2.02.
 	
 Form of Trustee’s Certificate of
 Authentication
 	
  
 	
 14
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE 3
 	
  
 	
  
 
	
 The Senior Debt Securities
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 
	
 Section 3.01.
 	
 Amount Unlimited; Issuable in Series
 	
  
 	
 16
 
	
 Section 3.02.
 	
 Denominations
 	
  
 	
 18
 
	
 Section 3.03.
 	
 Execution, Authentication, Delivery and
 Dating
 	
  
 	
 19
 
	
 Section 3.04.
 	
 [Reserved]
 	
  
 	
 20
 
	
 Section 3.05.
 	
 Registration, Registration of Transfer and
 Exchange
 	
  
 	
 20
 
	
 Section 3.06.
 	
 Mutilated, Destroyed, Lost and Stolen
 Senior Debt Securities
 	
  
 	
 24
 
	
 Section 3.07.
 	
 Payment; Interest Rights Preserved
 	
  
 	
 25
 
	
 Section 3.08.
 	
 Persons Deemed Owners
 	
  
 	
 26
 
	
 Section 3.09.
 	
 Cancellation
 	
  
 	
 26
 
	
 Section 3.10.
 	
 Computation of Interest
 	
  
 	
 27
 
	Section 3.11.
	CUSIP Numbers
	 
	27

	
 Section 3.12.
 	
 Additional Senior Debt Securities
 	
  
 	
  
 

i

	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 4

 	
  

 	
  

 
	
 Satisfaction and Discharge

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.01.

 	
 Satisfaction and Discharge of Senior Debt
 Securities Indenture

 	
  

 	
 28

 
	
 Section 4.02.

 	
 Application of Trust Money

 	
  

 	
 29

 
	
 Section 4.03.

 	
 Repayment to Company

 	
  

 	
 29

 
	
  

 	
  

 	
  

 
	
 ARTICLE 5

 	
  

 	
  

 
	
 Remedies

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Section 5.01.

 	
 Events of Default

 	
  

 	
 30

 
	
 Section 5.02.

 	
 Acceleration of Maturity; Rescission and
 Annulment

 	
  

 	
 30

 
	
 Section 5.03.

 	
 Collection of Indebtedness and Suits for
 Enforcement by Trustee

 	
  

 	
 31

 
	
 Section 5.04.

 	
 Trustee May File Proofs of Claim

 	
  

 	
 33

 
	
 Section 5.05.

 	
 Trustee May Enforce Claims Without
 Possession of Senior Debt Securities

 	
  

 	
 33

 
	
 Section 5.06.

 	
 Application of Money Collected

 	
  

 	
 33

 
	
 Section 5.07.

 	
 Limitation on Suits

 	
  

 	
 34

 
	
 Section 5.08.

 	
 Unconditional Right of Holders to Receive
 Principal, Premium and Interest, If Any

 	
  

 	
 35

 
	
 Section 5.09.

 	
 Restoration of Rights and Remedies

 	
  

 	
 35

 
	
 Section 5.10.

 	
 Rights and Remedies Cumulative

 	
  

 	
 35

 
	
 Section 5.11.

 	
 Delay or Omission Not Waiver

 	
  

 	
 35

 
	
 Section 5.12.

 	
 Control by Holders

 	
  

 	
 35

 
	
 Section 5.13. 

 	
 Waiver of Past Defaults

 	
  

 	
 36

 
	
 Section 5.14. 

 	
 Undertaking for Costs

 	
  

 	
 36

 
	
  

 	
  

 	
  

 
	
 ARTICLE 6

 	
  

 	
  

 
	
 The Trustee

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Section 6.01.

 	
 Certain Duties and Responsibilities

 	
  

 	
 37

 
	
 Section 6.02.

 	
 Notice of Defaults

 	
  

 	
 37

 
	
 Section 6.03.

 	
 Certain Rights of Trustee

 	
  

 	
 37

 
	
 Section 6.04.

 	
 Not Responsible for Recitals or Issuance of
 Senior Debt Securities

 	
  

 	
 39

 
	
 Section 6.05.

 	
 May Hold Senior Debt Securities

 	
  

 	
 39

 
	
 Section 6.06.

 	
 Money Held in Trust

 	
  

 	
 39

 
	
 Section 6.07.

 	
 Compensation and Reimbursement

 	
  

 	
 40

 
	
 Section 6.08.

 	
 Disqualification; Conflicting Interests

 	
  

 	
 41

 
	
 Section 6.09.

 	
 Corporate Trustee Required; Eligibility

 	
  

 	
 41

 
	
 Section 6.10.

 	
 Resignation and Removal; Appointment of
 Successor

 	
  

 	
 41

 
	
 Section 6.11.

 	
 Acceptance of Appointment by Successor

 	
  

 	
 43

 
	
 Section 6.12.

 	
 Merger, Conversion, Consolidation or
 Succession to Business

 	
  

 	
 45

 
	
 Section 6.13.

 	
 Preferential Collection of Claims

 	
  

 	
 45

 
	
 Section 6.14.

 	
 Appointment of Authenticating Agent

 	
  

 	
 45

 

ii

	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 7

 	
  

 	
  

 
	
 Holders Lists and Reports by Trustee and Company

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Section 7.01.

 	
 Company to Furnish Trustee Names and
 Addresses of Holders

 	
  

 	
 47

 
	
 Section 7.02.

 	
 Preservation of Information; Communication
 to Holders

 	
  

 	
 47

 
	
 Section 7.03.

 	
 Reports by Trustee

 	
  

 	
 48

 
	
 Section 7.04.

 	
 Reports by the Company

 	
  

 	
 48

 
	
 ARTICLE 8

 	
  

 	
  

 
	
 Consolidation, Merger, Conveyance or Transfer

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 8.01.

 	
 Company May Consolidate, Etc. Only on
 Certain Terms

 	
  

 	
 49

 
	
 Section 8.02.

 	
 Successor Corporation Substituted

 	
  

 	
 50

 
	
 Section 8.03.

 	
 Assumption of Obligations

 	
  

 	
 50

 
	
  

 	
  

 	
  

 
	
 ARTICLE 9

 	
  

 	
  

 
	
 Supplemental Indentures

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Section 9.01.

 	
 Supplemental Indentures without Consent of
 Holders

 	
  

 	
 52

 
	
 Section 9.02.

 	
 Supplemental Indentures with Consent of
 Holders

 	
  

 	
 53

 
	
 Section 9.03.

 	
 Execution of Supplemental Indentures

 	
  

 	
 54

 
	
 Section 9.04.

 	
 Effect of Supplemental Indentures

 	
  

 	
 54

 
	
 Section 9.05.

 	
 Conformity with Trust Indenture Act

 	
  

 	
 54

 
	
 Section 9.06.

 	
 Reference in Senior Debt Securities to
 Supplemental Indentures

 	
  

 	
 54

 
	
  

 	
  

 	
  

 
	
 ARTICLE 10

 	
  

 	
  

 
	
 Covenants

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Section
 10.01.

 	
 Payment of Principal, Premium, and Interest

 	
  

 	
 55

 
	
 Section
 10.02.

 	
 Maintenance of Office or Agency

 	
  

 	
 55

 
	
 Section
 10.03.

 	
 Money for Payments to be Held in Trust

 	
  

 	
 56

 
	
 Section
 10.04.

 	
 Additional Amounts

 	
  

 	
 57

 
	
 Section
 10.05.

 	
 Corporate Existence

 	
  

 	
 59

 
	
 Section
 10.06.

 	
 Statement as to Compliance

 	
  

 	
 59

 
	
 Section
 10.07.

 	
 Original Issue Document

 	
  

 	
 59

 
	
  

 	
  

 	
  

 
	
 ARTICLE 11

 	
  

 	
  

 
	
 Redemption of Senior Debt Securities

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Section
 11.01.

 	
 Applicability of Article

 	
  

 	
 59

 
	
 Section
 11.02.

 	
 Election to Redeem; Notice to Trustee

 	
  

 	
 59

 
	
 Section
 11.03.

 	
 Selection by Trustee of Senior Debt
 Securities to be Redeemed

 	
  

 	
 60

 
	
 Section
 11.04.

 	
 Notice of Redemption

 	
  

 	
 60

 
	
 Section
 11.05.

 	
 Deposit of Redemption Price

 	
  

 	
 61

 
	
 Section
 11.06.

 	
 Senior Debt Securities Payable on
 Redemption Date

 	
  

 	
 61

 

iii

	
  

 	
  

 	
  

 	
  

 
	
 Section
 11.07.

 	
 Senior Debt Securities Redeemed in Part

 	
  

 	
 62

 
	
 Section
 11.08.

 	
 Optional Redemption Due to Changes in Tax
 Treatment

 	
  

 	
 62

 

iv

          SENIOR
DEBT SECURITIES INDENTURE, dated as of [•] between LLOYDS BANKING GROUP
PLC, a corporation incorporated in Scotland with registered number 095000 (the
“Company”), and THE BANK OF NEW
YORK MELLON, 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 Senior Debt
Securities Indenture to provide for the issuance from time to time of its
senior debt securities (the “Senior Debt
Securities”), to be issued in one or more series, represented by one
or more Global Securities without coupons for payments attached, or represented
by definitive Senior Debt Securities 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 Senior Debt Securities Indenture a valid and
binding agreement of the Company, in accordance with its terms, have been done.

          NOW,
THEREFORE, THIS SENIOR DEBT SECURITIES INDENTURE WITNESSETH:

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

ARTICLE 1

Definitions and Other Provisions of General Application

          Section
1.01.
Definitions. For all purposes of this Senior 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;

 
	
  

 	
  

 
	
  

 	
           (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;

 

1

	
  

 	
  

 
	
  

 	
           (3)
 all accounting terms not otherwise defined herein have the meanings assigned
 to them in accordance with the International Financial Reporting Standards; 

 
	
  

 	
  

 
	
  

 	
           (4)
 the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this
 Senior 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 Senior Debt Securities Indenture.

 

          “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.

          “Additional Senior Debt Securities” has the
meaning set forth in Section 3.12.

          “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
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
Senior Debt Securities. Initially the Trustee shall act as Authenticating
Agent.

          “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 Senior Debt
Securities listed on the Luxembourg Stock Exchange, and if it shall be
impracticable in the opinion of the Company 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 Company
which may include through the means of DTC, Euroclear and Clearstream.

2

          “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 duly 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 Senior
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 Senior Debt Securities.

          “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 Request” and “Company Order” mean, respectively, a
written request or order signed in the name of the Company, by an Executive
Officer of the Company, 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
Administration, Facsimile: +44 20 7964 2536).

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

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

3

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

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

          “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 European economic and monetary
union legislation.

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

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

          “Executive Officer” means any executive
officer or any authorized person as defined in the minutes of a meeting of a
committee of the Board of Directors held on [•], and, in each case, any
other person authorized by a Board Resolution to carry out the functions such
officer performs. 

          “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 Senior 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.

4

          “Global Security” means a global certificate
evidencing all or part of a series of Senior 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
Senior Debt Security in global or definitive form is registered in the Senior
Debt Security Register.

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

          “Maturity”, when used with respect to any
Senior Debt Security, means the date, if any, on which the principal of such
Senior 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 any Executive Officer.

          “Opinion of Counsel” means a written opinion
of counsel, who may be an internal counsel employed by the Company, or legal
advisors for the Company, or otherwise, such Opinion of Counsel to be
acceptable to the Trustee.

          “Original Issue Discount Security” means any
Senior 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
Senior Debt Securities or any series of Senior Debt Securities means (except as
otherwise specified pursuant to Section 3.01), as of the date of determination,
all Senior Debt Securities or all Senior Debt Securities of such series, as the
case may be, theretofore authenticated and delivered under this Senior Debt
Securities Indenture, except:

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (ii)
 Senior 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 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 Senior Debt Securities; provided, that, if such
 Senior Debt Securities are to be redeemed, notice of such redemption has been
 duly given pursuant to this Senior Debt Securities Indenture or provision
 therefor satisfactory to the Trustee has been made; and

 

5

	
  

 	
  

 
	
  

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

 

provided, however,
that in determining whether the Holders of the requisite principal amount of
the Outstanding Senior Debt Securities of any series have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, (i) the
principal amount of a Senior Debt Security denominated in a Foreign Currency
shall be the Dollar equivalent, determined on the date of original issuance of
such Senior Debt Security, of the principal amount of such Senior Debt Security;
and (ii) Senior Debt Securities beneficially owned by the Company, or any other
obligor upon the Senior 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
Senior Debt Securities for which a Responsible Officer of the Trustee has
received an Officer’s Certificate stating that such Senior Debt Securities are
so beneficially owned shall be so disregarded; provided, further,
however,
that Senior 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
Senior Debt Securities and that the pledgee is not the Company, or any other
obligor upon the Senior 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 Senior 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.

          “Place of Payment”, when used with respect
to the Senior Debt Securities of any series, means the place or places where
the principal of (and premium, if any) and interest, if any, on the Senior 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.

6

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

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

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

          “Regular Record Date” for the interest
payable on any Interest Payment Date on Senior Debt Securities of any series
means, unless otherwise specified in accordance with Section 3.01, the date
which is 15 calendar days prior to the applicable payment date. If such 15th
day is not a Business Day, the record date for determination will be the next
succeeding Business Day.

          “Responsible Officer”, when used with
respect to the Trustee, means any managing director, director, any vice
president, any associate, any trust officer or other officer of the Trustee
assigned to or working in the Corporate Trust Office 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 Senior Debt Securities Indenture.

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

          “Senior 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 Senior Debt Securities established pursuant
to Section 3.01.

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

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

          “Special Record Date”, when used for the
payment of any Default Interest on Senior Debt Securities of any series, means
the date specified by the Company for the purpose pursuant to Section 3.07.

7

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

          “Subsidiary”
means a subsidiary or a subsidiary undertaking, as such terms are defined in
Sections 1159 and 1162 of the Companies Act 2006 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 Senior 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 Senior Debt Securities of
any series shall mean the Trustee with respect to the Senior 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.

          “U.S.
Government Obligations” means non-callable (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.

8

          Section
1.02.
Compliance Certificates and Opinions. Except as otherwise expressly
provided by this Indenture, upon any application or request by the Company to
the Trustee to take any action under any provision of this Senior 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
Senior 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 Senior 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 Senior Debt Securities Indenture (other than Section
10.06) 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
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.

9

          Where
any Person is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other instruments
under this Senior 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 Senior 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 Senior
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.

          (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 Senior Debt Securities shall be proved by the Senior Debt
Security Register.

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

10

          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 Senior 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 and the Trustee agrees to accept and act upon
facsimile transmission of written instructions pursuant to this Senior Debt
Securities Indenture; provided, however, that (x) the party providing such
written instructions, subsequent to such transmission of written instructions,
shall provide the originally executed instructions or directions to the Trustee
in a timely manner, and (y) such originally executed instructions or directions
shall be signed by an authorized representative of the party providing such
instructions or directions; 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, first-class air mail postage prepaid, to the Company, to 10 Gresham
Street, London EC2V 7AE (Attention: Head of Capital with a copy to 25 Gresham
Street, London EC2V 7AE, Attention: The Secretary) or at any other address
previously furnished in writing to the Trustee by the Company.

          Section
1.06.
Notice to Holders; Waiver. When this Senior 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 Senior
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 Senior 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 Senior 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 Senior 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.

11

          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 Senior 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 Senior 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 Senior 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 Senior Debt
Securities Indenture in conformity with the requirements of the Trust Indenture
Act as then in force, except that (subject to Article Nine) 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 Senior Debt 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 Senior
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 Senior Debt
Securities Indenture or in the Senior 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 Senior Debt Securities Indenture. Nothing in this Senior
Debt Securities Indenture or in the Senior Debt Securities, express or implied,
shall give to any Person, other than the parties hereto and their successors
hereunder, and the Holders of Senior Debt Securities, any benefit or any legal
or equitable right, remedy or claim under this Senior Debt Securities
Indenture.

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

12

          Section
1.13.
Saturdays, Sundays and Legal Holidays. The terms of the Senior Debt
Securities shall provide that, in any case where any Interest Payment Date,
Redemption Date, Maturity or Stated Maturity, of a Senior Debt Security shall
not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Senior Debt Securities Indenture or the Senior Debt
Securities other than a provision in the Senior 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 Senior 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 Senior Debt
Security) with the same force and effect as if made on such Interest Payment
Date, Redemption Date, Maturity or Stated Maturity, provided that no interest
shall accrue on such payment for the period from and after such Interest
Payment Date, Redemption Date, Maturity or Stated Maturity, as the case may be.

          Section
1.14.
Appointment of Agent for Service. The Company has designated and
appointed the Chief U.S. Counsel, Lloyds TSB Bank plc (or any successor
thereto), currently of 1095 Avenue of the Americas, 34th Floor, New
York, NY 10036 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 Senior Debt Securities
or this Senior Debt Securities Indenture, but for that purpose only, and agrees
that service of process upon such authorized agent 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 Senior
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 such authorized agent in full force and effect so long as any of the Senior 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 any right to trial by jury, to the
extent it may effectively do so, and any objection it may have now or hereafter
to the laying of the venue of any such suit or proceeding.

13

          Section
1.15.
Calculation Agent. If the Company appoints a Calculation Agent
pursuant to Section 3.01 with respect to any series of Senior Debt Securities,
any determination of the interest rate on, or other amounts in relation to,
such series of Senior Debt Securities in accordance with the terms of such
series of Senior 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

Senior Debt Security Forms

          Section
2.01.
Forms Generally. The Senior Debt Securities of each series shall be
issuable as registered securities without coupons and in such forms as shall be
established by or pursuant to a Board Resolution, 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 Senior 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 Senior Debt Securities, all as evidenced by any such
execution.

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

          The
definitive Senior 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 Senior
Debt Securities may be listed, all as determined by the officers executing such
Senior 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 Senior Debt Securities of the series designated herein referred
to in the within-mentioned Senior Debt Securities Indenture.

	
  

 	
  

 	
  

 
	
  

 	
 Dated: 

 	
  

 
	
  

 	
  

 	

 

 

14

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF
 NEW YORK MELLON

 
	
  

 	
  

 	
  

 
	
  

 	
 as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized
 Signatory

 

15

ARTICLE 3

The Senior Debt Securities

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

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

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

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

          (d)
the rate or rates, if any, at which the Senior 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, the terms applicable to deferred payments and, the Regular Record
Date for the interest payable on any Interest 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 Senior Debt Securities of the series;

          (f)
the place or places where the principal of (and premium, if any) and any
interest on Senior 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 Senior Debt 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;

16

          (g)
other than with respect to any redemption of the Senior Debt Securities
pursuant to Section 11.08, whether or not such series of Senior 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, Senior 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 Senior 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 Senior
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 $1,000 and any multiple thereof, the
denominations in which Senior 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 Senior 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 Senior 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)
the terms, if any, on which such Senior Debt Securities may or shall be
converted into or exchanged at the option of the Company or otherwise for stock
or other securities of the Company or another entity or other entities, into a
basket or baskets of such securities, into an index or indices of such
securities, into the cash value therefor or into any combination of the
foregoing, any specific terms relating to the adjustment thereof and the period
during which such Senior Debt Securities may or shall be so converted or
exchanged;

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

          (n)
if other than the coin or currency in which the Senior 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 Senior Debt Securities of
such series shall be payable;

17

          (o)
if the principal of (and premium, if any) or interest, if any, on the Senior
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
Senior 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 Senior 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 Senior Debt Securities;

          (q)
if the Senior Debt Securities of such series are to be issuable in definitive
form (whether upon original issue or upon exchange of a temporary Senior 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 Senior 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 or covenants with respect to the Senior Debt
    Securities of such series and if other than as specified in this Senior Debt
    Indenture, the terms thereof;

          (t)
the forms of Senior Debt Securities of the series; and

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

          All
Senior 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 Senior Debt Securities of any series, or any of the terms thereof,
are established by action taken pursuant to a Board Resolution, a copy of the
Board Resolution 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 Senior Debt Securities.

          Section
3.02.
Denominations. The Senior 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 Senior Debt
Securities of any series, the Senior Debt Securities of each series shall be
issuable in denominations of $1,000 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 $1,000 principal amount of such Global Security constituting one unit.

18

          Section
3.03.
Execution, Authentication, Delivery and Dating. The Senior Debt
Securities shall be executed on behalf of the Company by any Executive Officer.
The signature of any Executive Officer on the Senior Debt Securities may be
manual or facsimile. Senior Debt Securities bearing the manual or facsimile
signatures of individuals who were at any time the proper officer of the
Company shall bind the Company, notwithstanding that such individual has ceased
to hold such office prior to the authentication and delivery of such Senior
Debt Securities.

          At
any time and from time to time after the execution and delivery of this Senior
Debt Securities Indenture, the Company may deliver Senior 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 Senior Debt
Securities, and the Trustee in accordance with the Company Order shall
authenticate and deliver such Senior Debt Securities. In authenticating such
Senior Debt Securities and accepting the additional responsibilities under this
Senior Debt Securities Indenture in relation to such Senior Debt 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
(a) the form and terms thereof have been established in conformity with
the provisions of this Senior Debt Securities Indenture and (b) that this
Indenture and such Senior Debt Securities, when authenticated and delivered by
the Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid and
binding obligations of the Company enforceable in accordance with their terms,
except as the enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other laws relating to or affecting creditor’s
rights and by general principles of equity.

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

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

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

19

          Section
3.04.
[Reserved]

          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 Senior Debt
Securities shall be initially issued and represented by one or more Global
Securities, without Coupons attached thereto, which shall be authenticated as
contemplated by this Senior Debt Securities Indenture.

          Each
Global Security authenticated under this Senior 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
Senior Debt Security for all purposes of this Senior Debt Securities Indenture.
Except as otherwise specified, as contemplated by Section 3.01 hereof, each
Global Security authenticated under this Senior Debt Securities Indenture shall
be initially registered in the name of DTC only.

          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 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 Senior 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, (ii) if, in the event
of a winding-up of the Company, the Company fails to make a payment on the
Senior 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 Senior Debt Securities of
that series. 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 Senior Debt Securities 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 Senior Debt Securities 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.

20

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

          No
Global Security 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 Senior Debt Securities in definitive form and will not be
considered the holders thereof for any purpose under this Senior Debt
Securities Indenture.

          In
the event that a Global Security is surrendered for redemption or exchange for
stock or other securities of the Company or another entity or other entities in
part pursuant to Section 11.07, 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 other beneficial owners shall have no rights under this
Senior 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 (i) 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 (ii) 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 Senior Debt Securities Indenture.

21

          In
connection with any exchange of interests in a Global Security for definitive
Senior Debt Securities of another authorized form, as provided in this 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 Senior 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 Senior Debt
Securities without charge 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 Senior 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 Senior 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
Senior Debt Security 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 Senior 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.

          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 Senior Debt
Securities Indenture with respect to the Senior Debt Securities.

          (b)
Except as otherwise specified pursuant to Section 3.01, Senior Debt Securities
of any series may only be exchanged for a like aggregate principal amount of
Senior Debt Securities of such series of other authorized denominations
containing identical terms and provisions. Senior 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 Senior
Debt Security or Senior 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 “Senior
Debt Security Register”; provided, no such Senior 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 Senior Debt Securities and of transfers of such Senior Debt Securities. The Trustee is hereby appointed “Senior Debt Security Registrar” for the purpose of registering Senior Debt Securities and transfers of Senior Debt Securities as herein provided.

22

          Senior
Debt Securities shall be transferable only on the Senior Debt Security
Register. Upon surrender for registration of transfer of any Senior 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 formal
transfer, within three Business Days, in the name of the designated transferee
or transferees, one or more new Senior 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 Senior Debt Security is transferred, a new Senior 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 transferor, within three Business
Days after the Trustee acting as Paying Agent pursuant to Section 10.02
receives the Senior Debt Security. The new Senior 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 Senior Debt Security Register. A
new Senior Debt 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 Senior Debt Security. The
new Senior Debt 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.

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

          Every
Senior 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 Senior Debt Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.

          No
service charge shall be made for any registration of transfer or exchange of
Senior 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 Senior Debt Securities,
other than exchanges pursuant to Sections 3.04, 9.06 or 11.07 not involving any
transfer.

23

          The
Company shall not be required (i) to issue, register the transfer of or
exchange any Senior 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 Senior 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
Senior Debt Security so selected for redemption in whole or in part, except the
unredeemed portion of any Senior Debt Securities being redeemed in part.

          Section
3.06.
Mutilated, Destroyed, Lost and Stolen Senior Debt Securities. If any
mutilated Senior Debt Security (including any Global Security) is surrendered
to the Trustee, the Company may execute and the Trustee shall, in the case of a
Senior Debt Security, authenticate and deliver in exchange therefor a new
Senior Debt Security 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 Senior 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 Senior 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 Senior Debt Security a
new Senior 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 Senior Debt Security has
become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Senior Debt Security, pay such Senior Debt
Security.

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

24

          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 Senior Debt Securities.

          Section
3.07.
Payment; Interest Rights Preserved. Except as otherwise provided as
contemplated by Section 3.01 with respect to any series of Senior Debt
Securities, interest, if any, on any Senior Debt Securities which is payable,
and is paid or duly provided for, on any Interest Payment Date shall be paid to
the Holder (including if held through a Paying Agent of the Company designated
pursuant to Section 3.01 outside the United Kingdom for collection by the
Holder) at the close of business on the Regular Record Date for such interest.

          In
the case of Senior 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 Senior 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 Senior 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 “Default Interest”. Default
Interest on any Senior 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 Default Interest may be paid by the Company,
at its election in each case, as provided in clause (a) or (b) below:

          (a)
The Company may elect to make payment of any Default Interest to the Persons in
whose names the Senior Debt Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on a Special
Record Date for the payment of such Default Interest, which shall be fixed in
the following manner. The Company shall notify the Trustee in writing of the
amount of Default Interest proposed to be paid on each Senior Debt Security of
such series and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Default Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Default Interest as in this
clause provided. Thereupon the Company shall fix a Special Record Date for the
payment of such Default Interest in respect of such Senior Debt Securities of
such series which shall be not more than 15 days and not less than 10 days
prior to the date of the proposed
payment and not less than 10 days after it delivers to the Trustee notice of
the proposed payment. The Company shall promptly notify the Trustee of such
Special Record Date and, in the name and at the expense of the Company, the
Trustee shall cause notice of the proposed payment of such Default Interest and
the Special Record Date therefor to be given in the manner and to the extent
provided in Section 1.06, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Default Interest on the Senior
Debt Securities of such series and the Special Record Date therefor having been
so given, such Default Interest on the Senior Debt Securities of such series
shall be paid in the case of Senior Debt Securities to the Persons in whose
names such Senior Debt Securities (or their respective Predecessor Securities)
are registered in the Senior Debt Security Register at the close of business on
the Special Record Date, and such Default Interest shall no longer be payable
pursuant to the following clause (b); or

25

          (b)
The Company may make payment of any Default Interest on the Senior Debt
Securities of any series in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Senior Debt Securities
may be listed, and upon such notice as may be required by such exchange, if,
after notice given by the Company to the Trustee of the proposed payment
pursuant to this clause, such manner of payment shall be deemed practicable by
the Trustee.

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

          Section
3.08.
Persons Deemed Owners. Prior to due presentment of a Senior 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 Senior
Debt Security is registered as the owner of such Senior 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 Senior Debt Security and for all
other purposes whatsoever, whether or not such Senior 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 Senior 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 Senior Debt Securities previously authenticated and
delivered hereunder and all Senior Debt Securities so delivered shall be
promptly cancelled by the Trustee. No Senior Debt Securities shall be
authenticated in lieu of or in exchange for any Senior Debt Securities
cancelled as provided in this Section, except as
expressly permitted by the provisions of the Senior Debt Securities of any
series or pursuant to the provisions of this Senior Debt Securities Indenture.
The Trustee shall deliver to the Company all cancelled Senior Debt Securities
held by the Trustee.

26

          Section
3.10.
Computation of Interest. Except as otherwise specified pursuant to
Section 3.01 for Senior Debt Securities of any series, payments of interest on
the Senior 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 Senior 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 Senior 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 Senior 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.

          Section
3.12.
Additional Senior Debt Securities. The Company may, from time to time,
without the consent of the Holders of the Senior Debt Securities of any series,
issue additional Senior Debt Securities of one or more of the series of Senior
Debt Securities issued under this Senior Debt Securities Indenture, having the
same ranking and same interest rate, Maturity, redemption terms and other
terms, except for the price to the public and issue date and first Interest
Payment Date, as the Senior Debt Securities; provided, however, that such
additional Senior Debt Securities must be fungible with the Senior Debt
Securities for U.S. federal income tax purposes. Any such additional Senior
Debt Securities, together with the Senior Debt Securities of the applicable
series, will constitute a single series of Senior Debt Securities under this Senior
Debt Securities Indenture and shall be included in the definition of “Senior
Debt Securities” in this Senior Debt Securities Indenture where the context
requires.

27

ARTICLE 4
SATISFACTION AND DISCHARGE

          Section
4.01.
Satisfaction and Discharge of Senior Debt Securities Indenture. This
Senior Debt Securities Indenture shall upon Company Request cease to be of
further effect with respect to Senior Debt Securities of any series (except as
to any surviving rights of registration of transfer or exchange of Senior 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 Senior Debt Securities Indenture with respect to the Senior
Debt Securities of such series when:

          (a)
either

	
  

 	
  

 	
  

 
	
  

 	
           (i)
 all Senior Debt Securities of such series theretofore authenticated and
 delivered (other than (A) Senior Debt Securities which have been destroyed,
 lost or stolen and which have been replaced or paid as provided in Section
 3.06 and (B) Senior 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 Senior 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 stock or other securities of the Company or another
 entity or other entities and notice of exchange of such Senior Debt
 Securities for stock or other securities of the Company or another entity or
 other entities 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 Senior Debt Securities denominated in Dollars) or
Foreign Government Securities (with respect to Senior Debt Securities
denominated in the same Foreign 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 Senior 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 (C) above, as to
accrued interest, if any, to the date of such deposit (in the case of Senior
Debt Securities which have become due and payable) or to the Redemption Date;

28

          (b)
the Company has paid or caused to be paid all other sums payable hereunder by
the Company with respect to the Senior 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 Senior Debt Securities
Indenture with respect to the Senior Debt Securities of such series have been
complied with.

          Notwithstanding
any satisfaction and discharge of this Senior 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, including any termination under any bankruptcy law.

          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 Senior Debt Securities of such series,
and this Senior 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 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 Senior Debt Securities.

29

ARTICLE 5

REMEDIES

          Section
5.01.
Events of Default. “Event of
Default”, wherever used herein with respect to Senior Debt
Securities of a particular series, means (i) that, whatever the reason for such
Event of 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, except as otherwise provided as contemplated by Section 3.01 with respect
to any series of Senior Debt Securities, the Company failed to pay any
principal or any interest on any Senior Debt Securities of that series within
14 days from the due date for payment and the principal or interest has not
been duly paid within 14 days following written notice from the Trustee to the
Company or to the Company and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Outstanding Senior Debt Securities of that
series requiring the non-payment to be made good, (ii) the making of an order
by a Scottish court of competent jurisdiction which is not successfully
appealed within 30 days of the making of such order, or the 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
reconstruction, merger or amalgamation not involving bankruptcy or insolvency), (iii)
any other Event of Default provided with respect to Senior Debt Securities of
such series pursuant to Section 3.01 or, (iv) the default in the performance,
or breach, of any covenant or warranty of the Company in this Senior Debt Securities
Indenture (other than a covenant or warranty a default in whose performance or
whose breach is elsewhere in this Section 5.01 specifically dealt with) provided,
that default or breach has not been remedied within 60 days of receipt by the
Company and the Trustee from the Holders of at least 25% aggregate principal
amount of the Outstanding Senior Debt Securities of that series of a written
notice requiring the breach to be remedied or written notice from the Trustee
to the Company requiring the breach to be remedied.

          Section
5.02.
Acceleration of Maturity; Rescission and Annulment. If an Event of
Default occurs with respect to Senior 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 Senior Debt
Securities of such series may declare the principal amount (or, in the case of
Original Issue Discount Securities, the accreted face amount) together with
accrued interest, if any, on all the Senior 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 Senior 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 Senior 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 Senior Debt Securities arising therefrom) but
only if

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

30

	
  

 	
  

 
	
  

 	
           (i)
 the principal of (and premium, if any, on) any Senior Debt Securities of such
 series which have become due otherwise than by such declaration of
 acceleration and any due and payable interest, and overdue interest, if any,
 thereon at the rate or rates prescribed therefor in such Senior 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 Senior 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.
Collection of Indebtedness and Suits for Enforcement by Trustee. The
Company covenants that, if the Company fails to pay any principal or any
interest on any Senior Debt Securities of that series within 14 days from the
due date for payment and the principal or interest has not been duly paid
within 14 days following written notice from the Trustee to the Company or to
the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Outstanding Senior Debt Securities of that series
requiring the non-payment to be made good, the Company will, upon demand of the
Trustee, pay to it, for the benefit of the Holders of such Senior Debt
Securities, the whole amount then due and payable on such Senior Debt
Securities for principal (and premium, if any) and interest, if any, and
interest on any overdue principal (and premium, if any), at the rate or rates
prescribed therefor in such Senior Debt Securities; and, in addition thereto,
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

          If
an Event of Default with respect to Senior Debt Securities of any series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Senior Debt Securities of
such series by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Senior Debt Securities Indenture
or in aid of the exercise of any power granted herein, or to enforce any other
proper remedy, including the institution of proceedings in Scotland (but not
elsewhere) for the winding-up of the Company.

          The
Holders of Senior 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 Senior Debt Securities or this Senior Debt Securities
Indenture (or between the obligations under or in respect of any Senior Debt
Securities and any liability owed by a Holder to the Company) that they might otherwise have against the Company, whether before or during a winding up of the Company.

31

          Notwithstanding
the foregoing, failure to make any payment in respect of a series of Senior
Debt Securities shall not be a default in respect of such Senior Debt
Securities if such payment is withheld or refused and we deliver an Opinion of
Counsel concluding that such sums were not paid in order to comply with any law
or regulation or with the order of any court of competent jurisdiction, 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 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 Senior Debt Security, or for any claim based thereon and no
recourse under or upon any obligation, covenant or agreement of the Company in
this Senior Debt Securities Indenture, or in any Senior 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 Senior Debt
Securities Indenture and the issue of the Senior Debt Securities.

          Notwithstanding
any contrary provisions, nothing shall impair the right of a Holder, absent the
Holder’s consent, to sue for any payments due but unpaid with respect to the
Senior Debt Securities.

32

          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 Senior 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 Senior 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 Senior 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 first 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 Eight 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 Senior Debt Security any plan of reorganization,
arrangement, adjustment, or composition affecting any Senior Debt Securities or
the rights of any Holder of any Senior Debt Security or to authorize the
Trustee to vote in respect of the claim of any such Holder or holder in any
such proceeding.

          Section
5.05.
Trustee May Enforce Claims Without Possession of Senior Debt Securities. All
rights of action and claims under this Senior Debt Securities Indenture or the
Senior Debt Securities may be prosecuted and enforced by the Trustee without
the possession of any of the Senior 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 be for the ratable benefit of the Holders of the Senior Debt
Securities 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 Senior 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 Senior
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 Senior Debt
Securities due and owing to the Trustee under Section 6.07;

33

          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 Senior 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 Senior 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 Senior Debt Security of any
series shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Senior 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 with respect to Senior Debt Securities of the same series
specifying such Event of 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 Senior Debt Securities of such series shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default in its own name, as Trustee hereunder;

          (c)
such Holder of a Senior 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;

          (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 Senior Debt Securities of such series;

          it
being understood and intended that no one or more Holders of Senior 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 Senior 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 Senior Debt
Securities Indenture, except in the manner herein provided and for the equal
and ratable benefit of all Holders of Senior Debt Securities of such series.

34

          Section
5.08.
Unconditional Right of Holders to Receive Principal, Premium and Interest, if
Any. Notwithstanding any other provision in this Senior Debt
Securities Indenture, the Holder of any Senior 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 Senior Debt Security on the respective Stated Maturities as expressed in
such Senior Debt Security (or, in the case of redemption, on the Redemption
Date) 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 Senior Debt Security has instituted any proceeding to enforce any right or
remedy under this Senior 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
Senior 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 Senior 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
Senior 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
Senior 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
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 Senior Debt Security to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the
Holders of Senior 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 Senior
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 Senior 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 Senior Debt Securities of such series, provided
that the direction is in writing and the Trustee has been offered indemnity
and/or security satisfactory to it in its sole discretion; and 

35

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

          (b)
the action so directed would not be unjustly prejudicial to the Holders of any
Senior 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 Trustee may without prejudice to its
rights in respect of any subsequent Event of Default from time to time and at
any time waive any Event of Default or authorize any proposed Event of Default
by the Company, provided that in its opinion the interests of the Holders shall
not be materially prejudiced thereby and, provided further, that the Trustee
shall not exercise any powers conferred on it by this clause in contravention
of any notice in writing to the Company and the Trustee made pursuant to
Section 5.02 hereof but so that no such notice shall affect any waiver or
authorization previously given or made. The Holders of not less than a majority
in aggregate principal amount of the Outstanding Senior Debt Securities of any
series may on behalf of the Holders of all the Senior Debt Securities of such
series waive any past Event of Default hereunder with respect to such series
and its consequences, except an Event of Default:

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

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

          Upon
any such waiver, such Event of Default shall cease to exist, and any Event of
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 Senior Debt
Securities Indenture, but no such waiver shall extend to any subsequent or
other Event of Default or impair any right consequent thereon.

          Section
5.14.
Undertaking for Costs. All parties to this Senior Debt Securities
Indenture agree, and each Holder of any Senior 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 Senior
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 Senior 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 Senior Debt Security on or after the respective Stated Maturities expressed in such Senior Debt Security (or, in the case of redemption, on or after the Redemption Date).

36

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 Senior 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 Senior 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 hereunder with respect to Senior Debt Securities of any series of
which a Responsible Officer of the Trustee has written notice of such Event of
Default the Trustee shall transmit in the manner and to the extent provided in
Section 1.06 to Holders of Senior Debt Securities of such series notice of such
Event of Default hereunder known to the Trustee, unless such Event of Default
shall have been cured or waived; provided, however, that, the Trustee
shall be protected in withholding such notice (except for a payment default) if
it determines in good faith that the withholding of such notice is in the
interest of the Holders of Senior 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, Officer’s Certificate, or any other
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;

37

          (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 Senior 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 and/or an Opinion of Counsel;

          (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 conclusive reliance thereon;

          (e)
the Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Senior Debt Securities Indenture at the request or
direction of any of the Holders pursuant to this Senior Debt Securities
Indenture, unless such Holders shall have offered to the Trustee security
and/or indemnity satisfactory to it in the Trustee’s sole discretion against
the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction; and the Trustee may act at the direction of the
requisite percentage of Holder without liability,

          (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, 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 Senior Debt
Securities Indenture;

38

          (i)
the Trustee shall not be deemed to have notice of any Event of Default unless a
Responsible Officer of the Trustee has received 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;

          (j)
the Trustee shall not be liable for any indirect, special, punitive or
consequential loss or damage of any kind whatsoever, including, but not limited
to, lost profits, even if it has been advised of the likelihood of such loss or
damage and regardless of the form of action; and

          (k)
the Trustee shall not be liable for any failure or delay in the performance of
its obligations hereunder because of circumstances beyond its control,
including, but not limited to, acts of God, flood, war (whether declared or
undeclared), terrorism, strikes, work stoppages, civil or military
disturbances, nuclear or natural catastrophes, fire, riot, embargo, loss or
malfunctions of utilities, communications or computer (software and hardware)
services, government action, including any laws, ordinances, regulations,
governmental action or the like which delay, restrict or prohibit the providing
of the services contemplated by this Senior Debt Securities Indenture; and

          (l)
The Trustee bank in any other agency role hereunder shall have the same rights,
protections, reimbursement and indemnity as is accorded the Trustee under
Section 6.03.

          Section
6.04.
Not Responsible for Recitals or Issuance of Senior Debt Securities. The
recitals contained herein and in the Senior 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 Senior Debt Securities Indenture or of
the Senior Debt Securities, except that the Trustee represents and warrants
that it has duly authorized, executed and delivered this Senior Debt Securities
Indenture. Neither the Trustee nor any Authenticating Agent shall be
accountable for the use or application by the Company of Senior Debt Securities
or the proceeds thereof.

          Section
6.05.
May Hold Senior Debt Securities. The Trustee, any Authenticating
Agent, any Paying Agent, any Senior 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 Senior Debt Securities and,
subject to Sections 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, Senior 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 in writing with the Company.

39

          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 in a fee letter which
may be amended 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 Senior 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 (which for purposes of this subparagraph Section
6.07(c) shall be deemed to include its directors, officers, employees, and
agents) 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 with respect to duties expressly stated in
this Indenture, 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. If the Company
and the Trustee are being represented by the same counsel and the Company has
assumed the defense of the claim, the Trustee shall not be authorized to settle
a claim without the written consent of the Company, which consent shall not be
unreasonably withheld. In the case where the Company has assumed the defense of
a claim and the Trustee and the Company are represented by the same legal
counsel, the Trustee should not settle such a claim without the written consent
of the Company, which shall not be unreasonably withheld.

          If
the Trustee is represented by separate counsel due to a conflict of interest
    or its need for separate representation due to a need to assert defenses
    which are different from the Company’s in the Trustee’s sole discretion,
    the Trustee shall be entitled to enter into any settlement without the written
    consent of the Company and any and all fees, costs and expenses of such separate
    legal representation of the Trustee will be paid by the Company.

40

          As
security for the performance of the obligations of the Company under this
Section, the Trustee shall have a senior lien to which the Senior 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 Senior Debt
Securities.

          The
Trustee’s right to reimbursement and indemnity under this Section 6.07 shall
survive the payment in full of the Senior Debt Securities, the discharge of the
Indenture, and the resignation or removal of the Trustee.

          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 Senior 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 banking
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 banking 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 banking 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 Senior 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 Senior Debt Securities of such series.

41

          (c)
The Trustee may be removed at any time with respect to the Senior Debt
Securities of any series by Act of the Holders of a majority in principal
amount of the Outstanding Senior 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 Senior 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
 Senior 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 Senior 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
 Senior 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 Senior 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 Senior Debt Security for at least
six months (and, in the case of Section 6.10(d)(i) above, who is a Holder of a
Senior 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 Senior Debt Securities and the appointment of a successor Trustee or
Trustees.

42

          (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
Senior 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 Senior Debt Securities of such series (it being understood that any
successor Trustee may be appointed with respect to the Senior 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 Senior 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 Senior Debt Securities of any
series shall be appointed by Act of the Holders of a majority in principal
amount of the Outstanding Senior 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 Senior 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 Senior Debt Securities of any series shall have been
so appointed by the Company or the Holders of Senior 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 Senior 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 Senior Debt Securities
of such series.

          (f)
The Company shall give notice of each resignation and each removal of the
Trustee with respect to the Senior Debt Securities of any series and each
appointment of a successor Trustee with respect to the Senior 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
Senior 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
Senior 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.

43

          (b)
In case of the appointment hereunder of a successor Trustee with respect to the
Senior Debt Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Senior 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 Senior
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 Senior 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 Senior 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 Senior 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 Senior 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 Senior 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.

44

          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 Senior 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 Senior Debt Securities so authenticated with the
same effect as if such successor Trustee had itself authenticated such Senior
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 Senior 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
Senior Debt Securities which shall be authorized to act on behalf of the
Trustee to authenticate Senior 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 Senior Debt Securities, and
Senior Debt Securities so authenticated shall be entitled to the benefits of
this Senior 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 Senior Debt Securities Indenture to the authentication and
delivery of Senior 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 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 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.

45

          An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and 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 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 Senior 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 Senior 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 Senior Debt Securities referred to in the within-mentioned Senior
Debt Securities Indenture.

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF
 NEW YORK MELLON

 
	
  

 	
  

 
	
  

 	
 as Trustee

 
	
  

 	
  

 
	
  

 	
 By:

 	

 

 

	
  
 	
  
 	
  
 
	
  
 	
 THE BANK OF
 NEW YORK MELLON
 
	
  
 	
  
 	
  
 
	
  
 	
 as
 Authenticating Agent
 
	
  
 	
  
 
	 
	By:
	
   

46

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
Senior Debt Securities, 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 Senior
Debt Securities and Senior 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 Senior 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 Senior Debt Securities
so long as the Trustee acts as Senior Debt Security Registrar with respect to
such series of Senior 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
Trustee in its capacity as Paying Agent or Senior Debt 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 Senior Debt Securities of any series to
communicate with other Holders with respect to their rights under this Senior
Debt Securities Indenture or under the Senior Debt Securities, and the corresponding
rights and privileges of the Trustee, shall be as provided by the Trust
Indenture Act.

47

          (c)
Every Holder, by receiving and holding a Senior 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 [•] in each year following the date hereof, so long as any Senior
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 Senior Debt Securities are listed, with the
Commission and with the Company. The Company will notify the Trustee when
Senior 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
Senior Debt Securities. In addition, the Company will furnish the Trustee with
all notices of meetings at which holders of Senior Debt Securities of a
particular series are entitled to vote, and all other reports and
communications that are made generally available to holders of Senior Debt Securities.
The Trustee will, at the Company’s expense, make such notices, reports and
communications available for inspection by holders of Senior 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 Senior
Debt Securities of a particular series are entitled to vote, will mail to all
such record holders of Senior Debt 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 the 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 actual or 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);

48

          (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 Senior 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 Senior Debt Securities of
any series Outstanding under this Senior 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 (including Deferred Amounts),
    if any, on all the Senior Debt Securities in accordance with the provisions
    of such Senior Debt Securities and this Senior Debt Securities Indenture
    and the performance of every covenant of this Senior Debt Securities Indenture
    on the part of the Company to be performed or observed;

49

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

          (c)
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 by the Company into any other
corporation 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 Senior 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 Senior Debt Securities Indenture and the
Senior Debt Securities. 

          Section
8.03. Assumption of Obligations. With
respect to the Senior 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 Senior Debt Securities in
accordance with the provisions of such Senior Debt Securities and this Senior
Debt Securities Indenture and the performance of every covenant of this Senior
Debt Security Indenture and such series of Senior Debt 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 Senior 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 Senior
Debt Securities Indenture, unconditionally guarantee (such guarantee shall be
given on a Senior basis consistent with Article Twelve hereof) all of the
obligations of such successor entity under the Senior Debt Securities of such series and the Senior Debt Securities Indenture as so modified by such amendment; 

50

          (b)
such successor entity shall confirm in such amendment to the Senior 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 Senior
Debt Securities (subject to the exceptions specified therein), provided, however,
that for these purposes such successor entity’s country of organization
will be substituted for the United Kingdom in the definition of “Taxing
Jurisdiction”; 

          (c)
immediately after giving effect to such assumption of obligations, no Event of
Default and no event which, after notice or lapse of time or both, would become
an Event of 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 Senior
Debt Securities Indenture with respect to any such Senior Debt Securities with
the same effect as if such successor entity had been named as the Company in
this Senior Debt Securities Indenture (provided,
however, that the right of the successor to redeem the Senior Debt
Securities of the relevant series shall only apply with respect to any change
or amendment to, or change in the application or official interpretation of,
the laws or regulations (including any treaty) of the successor’s
jurisdiction of incorporation which occurs after the date of assumption) 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 Senior Debt Securities except as provided in
clause (a) of this Section 8.03. 

          If
the Company makes payment under the guarantee, the Company shall be required
    to pay all Additional Amounts, if any, payable pursuant to Section 10.04
    in respect of the Senior Debt Securities (subject to the exceptions set forth
    therein),
provided, however, that for
purposes of payment by the Company under the guarantee, the definition of
“Taxing Jurisdiction” shall include the successor entity’s country
of organization and the United Kingdom. 

51

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 any the Company herein and
in the Senior Debt Securities; 

          (b)
to add to the covenants of the Company for the benefit of the Holders of all or
any series of Senior Debt Securities (and, if such covenants are to be for the
benefit of fewer than all series of Senior 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; 

          (d)
to add to, change or eliminate any of the provisions of this Senior Debt
Securities Indenture, or any supplemental indenture, provided that any such change or elimination shall become
effective only when there is no Senior 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 Senior Debt Securities; 

          (f)
to establish the form or terms of Senior Debt Securities of any series as
permitted by Section 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 Senior Debt Securities Indenture, provided
such action shall not adversely affect the interests of the Holders of Senior
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 Senior Debt Securities of one or more
series and to add to or change any of the provisions of this Senior 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 

52

          (k)
to change or eliminate any provision of this Senior 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 a
majority in aggregate principal amount of the Outstanding Senior Debt
Securities of each series affected by such supplemental Senior 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 Senior Debt Securities Indenture or of modifying
in any manner the rights of the Holders of Senior Debt Securities of such
series under this Senior Debt Securities Indenture; provided, however, that no such supplemental indenture may,
without the consent of the Holder of each Outstanding Senior Debt Security
affected thereby, 

          (a)
change the Stated Maturity, if any, of any principal amount or any interest amounts
in respect of any such Senior 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 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 Senior Debt Securities, or the currency of payment of the principal
amount of, premium, if any, or interest on, any such Senior 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, on or
after the Redemption Date), or 

          (b)
reduce the percentage in aggregate principal amount of the Outstanding
Senior 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 Senior
Debt Securities Indenture or of certain defaults hereunder and their consequences)
provided for in this Senior Debt 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 Senior Debt Securities Indenture cannot be modified or waived without the
consent of the Holder of each Outstanding Senior 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 

53

          (d)
change in any manner adverse to the interests of the Holders of any Senior Debt
Securities 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
Senior 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 Senior Debt Securities Indenture which has expressly been
included solely for the benefit of one or more particular series of Senior Debt
Securities, or which modifies the rights of the Holders of Senior Debt
Securities of such series with respect to such covenant or other provision,
shall be deemed not to affect the rights under this Senior Debt Securities
Indenture of the Holders of Senior Debt 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 Senior 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 Senior Debt Securities Indenture
and that such supplemental indenture constitutes the legal, valid and binding
obligation of the Company. 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 Senior Debt Securities Indenture or otherwise. 

          Section
9.04. Effect of Supplemental Indentures. Upon
the execution of any supplemental indenture under this Article, this Senior
Debt Securities Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Senior Debt Securities
Indenture for all purposes; and every Holder of Senior 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 Senior Debt Securities to
Supplemental Indentures. Senior 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 Senior 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 Senior Debt Securities may be
authenticated and delivered by the Trustee in exchange for Outstanding Senior
Debt Securities of such series.

54

ARTICLE 10

COVENANTS

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

          Section
10.02.
Maintenance of Office or Agency. The Company will maintain in each
Place of Payment for any series of Senior Debt Securities an office or agency
where Senior Debt Securities of that series may be presented or surrendered for
payment, where Senior 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 Senior Debt Securities of that series and this
Senior Debt Securities Indenture may be served; provided, however, that at
the option of the Company in the case of definitive Senior 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
Senior Debt Security Register. With respect to the Senior 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 Senior Debt Securities of any series and this Senior 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 Senior 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 Senior 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.

55

          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 Senior 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, on any of the Senior 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 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 Senior 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 Senior 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 Senior 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 Senior 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 Senior 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 Senior 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 Senior 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.

56

          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 Senior 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
Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Senior 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 Senior 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 Senior 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 Senior Debt Securities (“Additional
Amounts”) as may be necessary in order that the net amounts paid to
the Holders of Senior 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 Senior 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:

57

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

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

          (iii)
the relevant Senior 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 Senior Debt Security or the
beneficial owner of any payment of (or in respect of) principal of, premium, if
any, or interest, if any, on such Senior 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 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 European Council Directive
2003/48/EC on the taxation of savings income or any law implementing or
complying with, or introduced in order to conform to, such Directive;

          (vi)
the relevant Senior 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 Senior 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 premium or
  interest on, the Senior Debt Securities to any Holder who is a fiduciary or
  partnership or settlor with respect to such fiduciary or a member of such
  partnership or 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.

58

          Whenever
in this Senior 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 Senior 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 Eight, 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,
(i) within 120 days after the end of each fiscal year; and (ii) within 5
Business Days of a written request from the Trustee, 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 Senior Debt Securities
relating to any original issue discount for U.S. federal income tax purposes.

ARTICLE 11

REDEMPTION OF SENIOR DEBT
SECURITIES

          Section
11.01.
Applicability of Article. Senior Debt Securities of any series shall
be redeemable in accordance with their terms and (except as otherwise specified
pursuant to Section 3.01 for Senior 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 Senior 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 Senior Debt
Securities of such series to be redeemed and, if applicable, the tenor of the
Senior Debt Securities to be redeemed. In the case of any redemption of Senior
Debt Securities of any series prior to the expiration of any provision
restricting such redemption provided in the terms of such Senior Debt
Securities or elsewhere in this Senior Debt Securities Indenture, the Company
shall furnish the Trustee with respect to such Senior Debt Securities with an
Officer’s Certificate evidencing compliance with or waiver of such provision.

59

          Section
11.03.
Selection by Trustee of Senior Debt Securities to be Redeemed. If
fewer than all the Senior Debt Securities of any series are to be redeemed, the
particular Senior 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 Senior 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 Senior Debt Securities of
that series or any multiple thereof) of the principal amount of Senior Debt
Securities of such series of a denomination larger than the minimum authorized
denomination for Senior Debt Securities of that series, all in accordance with
the rules and regulations of the applicable clearing system.

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

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

          Section
11.04.
Notice of Redemption. Unless otherwise provided as contemplated by
Section 3.01 with respect to any series of Senior Debt Securities, notice of
redemption shall be given not less than 30 nor more than 60 days prior to the
Redemption Date to each Holder of Senior 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,

60

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

          (d)
that on the Redemption Date the Redemption Price will become due and payable
upon each such Senior 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 Senior 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 Senior Debt Securities.

          Notice
of redemption of Senior 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, and the Company shall
deliver written notice thereof to the Trustee no less than 10 Business Days
prior to the date of the notice to Holders of Senior Debt Securities.

          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 Senior Debt Securities which are to be redeemed on
that date.

          Section
11.06.
Senior Debt Securities Payable on Redemption Date. Notice of
redemption having been given as aforesaid, the Senior 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 Senior Debt Securities shall cease to accrue interest.
Upon surrender of any such Senior Debt Security for redemption in accordance
with said notice, such Senior 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 Senior Debt Securities, 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 Senior Debt Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Regular Record Date or Special Record Date according to the terms of
the Senior Debt Securities and the provisions of Section 3.07. Senior Debt
Securities in definitive form shall be presented for redemption to the Paying
Agent.

61

          If
any Senior Debt Security called for redemption shall not be so paid upon
surrender thereof for redemption, the Senior 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.
Senior Debt Securities Redeemed in Part. Any Senior Debt Security
which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee), and the Company shall execute,
and the Trustee shall authenticate and deliver to the Holder of such Senior
Debt Security without service charge, a new Senior Debt Security or Senior 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 Senior Debt Security so surrendered.

          Section
11.08.
Optional Redemption Due to Changes in Tax Treatment. Unless
otherwise provided in the Senior Debt Securities of any series, the Company
will have the option to redeem the Senior Debt Securities of any series, as a
whole but not in part, 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 Senior Debt Securities to the date fixed for redemption (or, in the
case of Original Issue 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 application or
interpretation of such laws or regulations (including a decision of any court
or tribunal) which change or amendment becomes effective or applicable on or
after a date included in the terms of such series of Senior Debt Securities pursuant
to Section 3.01:

          (a)
in making payment under the Senior Debt Securities the Company 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 Senior Debt Securities would be treated as “a distribution” within the
meaning of chapter 2 of Part 23 of the Corporation Tax Act 2010 of the United
Kingdom (or any statutory modification or re-enactment thereof for the time
being); or 

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

62

          In
any case where the Company shall determine that as a result of any change in
the application or interpretation of any laws or regulations it is entitled to
redeem the Senior Debt Securities of any series, the Company shall be required
to deliver to the Trustee prior to the giving of any notice of redemption (i) 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 application or interpretation of
such laws or regulations has occurred and that the Company is entitled to
exercise its right of redemption; or (ii) an Officer’s Certificate, evidencing
compliance with such provisions and stating that it is entitled to redeem the
Senior Debt Securities pursuant to the terms of the Senior Debt Securities.

          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 parties hereto have caused this Senior Debt Securities Indenture
to be duly executed, all as of the day and year first above written.

	
  

 	
  

 	
  

 
	
  

 	
 LLOYDS
 BANKING GROUP PLC

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

63

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF
 NEW YORK MELLON

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

64Exhibit 4.2 

LLOYDS BANKING GROUP PLC
as Issuer

TO

THE BANK OF NEW YORK MELLON

as Trustee

FORM OF INDENTURE

Subordinated Debt Securities

LLOYDS BANKING 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

 
	
 §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. 

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

 	
  

 	
 12

 
	
 Section 1.04.

 	
  

 	
 Acts of Holders

 	
  

 	
 13

 
	
 Section 1.05.

 	
  

 	
 Notices, Etc. to Trustee and Company

 	
  

 	
 13

 
	
 Section 1.06.

 	
  

 	
 Notice to Holders; Waiver

 	
  

 	
 14

 
	
 Section 1.07.

 	
  

 	
 Conflict with Trust Indenture Act

 	
  

 	
 15

 
	
 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 Subordinated Debt Securities Indenture

 	
  

 	
 15

 
	
 Section 1.12.

 	
  

 	
 Governing Law

 	
  

 	
 15

 
	
 Section 1.13.

 	
  

 	
 Saturdays, Sundays and Legal Holidays

 	
  

 	
 16

 
	
 Section 1.14.

 	
  

 	
 Appointment of Agent for Service

 	
  

 	
 16

 
	
 Section 1.15.

 	
  

 	
 Calculation Agent

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 2

 
	
 SUBORDINATED
 DEBT SECURITY FORMS

 
	
  

 
	
 Section 2.01.

 	
  

 	
 Forms Generally

 	
  

 	
 17

 
	
 Section 2.02.

 	
  

 	
 Form of Trustee’s Certificate of Authentication

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 3

 
	
 THE SUBORDINATED DEBT 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.

 	
  

 	
  [Reserved]

 	
  

 	
 22

 
	
 Section 3.05.

 	
  

 	
 Registration, Registration of Transfer and Exchange

 	
  

 	
 22

 
	
 Section 3.06.

 	
  

 	
 Mutilated, Destroyed, Lost and Stolen Subordinated Debt Securities

 	
  

 	
 27

 
	
 Section 3.07.

 	
  

 	
 Payment; Interest Rights Preserved

 	
  

 	
 28

 
	
 Section 3.08.

 	
  

 	
 Persons Deemed Owners

 	
  

 	
 29

 
	
 Section 3.09.

 	
  

 	
 Cancellation

 	
  

 	
 30

 
	
 Section 3.10.

 	
  

 	
 Computation of Interest

 	
  

 	
 30

 
	
 Section 3.11.

 	
  

 	
 CUSIP Numbers

 	
  

 	
 30

 

i

	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Section 3.12.
 	
  
 	
 Additional Subordinated Debt Securities
 	
  
 	
 30
 
	
  
 	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE 4
 
	
 SATISFACTION
 AND DISCHARGE
 
	
  
 
	
 Section 4.01.
 	
  
 	
 Satisfaction and Discharge of Subordinated Debt Securities Indenture
 	
  
 	
 31
 
	
 Section 4.02.
 	
  
 	
 Application of Trust Money
 	
  
 	
 32
 
	
 Section 4.03.
 	
  
 	
 Repayment to Company
 	
  
 	
 33
 
	Section 4.04.
	 
	U.K. Financial Services Authority Consent
	 
	33

	
  
 	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE 5
 
	
 REMEDIES
 
	
  
 
	
 Section 5.01.
 	
  
 	
 Events of Default
 	
  
 	
 33
 
	
 Section 5.02.
 	
  
 	
 Acceleration of Maturity; Rescission and Annulment
 	
  
 	
 33
 
	
 Section 5.03.
 	
  
 	
 Defaults; Collection of Indebtedness and Suits for Enforcement by
 Trustee
 	
  
 	
 35
 
	
 Section 5.04.
 	
  
 	
 Trustee May File Proofs of Claim
 	
  
 	
 37
 
	
 Section 5.05.
 	
  
 	
 Trustee May Enforce Claims Without Possession of Subordinated Debt
 Securities
 	
  
 	
 37
 
	
 Section 5.06.
 	
  
 	
 Application of Money Collected
 	
  
 	
 38
 
	
 Section 5.07.
 	
  
 	
 Limitation on Suits
 	
  
 	
 38
 
	
 Section 5.08.
 	
  
 	
 Unconditional Right of Holders to Receive Principal, Premium and
 Interest, if any
 	
  
 	
 39
 
	
 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
 	
  
 	
 40
 
	
 Section 5.12.
 	
  
 	
 Control by Holders
 	
  
 	
 40
 
	
 Section 5.13.
 	
  
 	
 Waiver of Past Defaults
 	
  
 	
 40
 
	
 Section 5.14.
 	
  
 	
 Undertaking for Costs
 	
  
 	
 41
 
	
  
 
	
 ARTICLE 6
 
	
 THE TRUSTEE
 
	
  
 
	
 Section 6.01.
 	
  
 	
 Certain Duties and Responsibilities
 	
  
 	
 41
 
	
 Section 6.02.
 	
  
 	
 Notice of Defaults
 	
  
 	
 42
 
	
 Section 6.03.
 	
  
 	
 Certain Rights of Trustee
 	
  
 	
 42
 
	
 Section 6.04.
 	
  
 	
 Not Responsible for Recitals or Issuance of Subordinated Debt Securities
 	
  
 	
 44
 
	
 Section 6.05.
 	
  
 	
 May Hold Subordinated Debt Securities
 	
  
 	
 44
 
	
 Section 6.06.
 	
  
 	
 Money Held in Trust
 	
  
 	
 44
 
	
 Section 6.07.
 	
  
 	
 Compensation and Reimbursement
 	
  
 	
 44
 
	
 Section 6.08.
 	
  
 	
 Disqualification; Conflicting Interests
 	
  
 	
 45
 
	
 Section 6.09.
 	
  
 	
 Corporate Trustee Required; Eligibility
 	
  
 	
 45
 
	
 Section 6.10.
 	
  
 	
 Resignation and Removal; Appointment of Successor
 	
  
 	
 46
 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Section 6.11.

 	
  

 	
 Acceptance of Appointment by Successor

 	
  

 	
 48

 
	
 Section 6.12.

 	
  

 	
 Merger, Conversion, Consolidation or Succession to Business

 	
  

 	
 49

 
	
 Section 6.13.

 	
  

 	
 Preferential Collection of Claims

 	
  

 	
 49

 
	
 Section 6.14.

 	
  

 	
 Appointment of Authenticating Agent

 	
  

 	
 50

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 7

 
	
 HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

 
	
  

 
	
 Section 7.01.

 	
  

 	
 Company to Furnish Trustee Names and Addresses of Holders

 	
  

 	
 51

 
	
 Section 7.02.

 	
  

 	
 Preservation of Information; Communication to Holders

 	
  

 	
 52

 
	
 Section 7.03.

 	
  

 	
 Reports by Trustee

 	
  

 	
 52

 
	
 Section 7.04.

 	
  

 	
 Reports by Company

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 8

 
	
 CONSOLIDATION,
 MERGER, CONVEYANCE OR TRANSFER

 
	
  

 
	
 Section 8.01.

 	
  

 	
 Company May Consolidate, Etc., Only on Certain Terms

 	
  

 	
 54

 
	
 Section 8.02.

 	
  

 	
 Successor Corporation Substituted

 	
  

 	
 55

 
	
 Section 8.03.

 	
  

 	
 Assumption of Obligations

 	
  

 	
 55

 
	
 Section 8.04.

 	
  

 	
 Notification Of Assumption Or Substitution To The U.K. Financial
 Services Authority

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 9

 
	
 SUPPLEMENTAL
 INDENTURES

 
	
  

 
	
 Section 9.01.

 	
  

 	
 Supplemental Indentures without Consent of Holders

 	
  

 	
 57

 
	
 Section 9.02.

 	
  

 	
 Supplemental Indentures with Consent of Holders

 	
  

 	
 58

 
	
 Section 9.03.

 	
  

 	
 Execution of Supplemental Indentures

 	
  

 	
 59

 
	
 Section 9.04.

 	
  

 	
 Effect of Supplemental Indentures

 	
  

 	
 59

 
	
 Section 9.05.

 	
  

 	
 Conformity with Trust Indenture Act

 	
  

 	
 60

 
	
 Section 9.06.

 	
  

 	
 Reference in Subordinated Debt Securities to Supplemental Indentures

 	
  

 	
 60

 
	
 Section 9.07.

 	
  

 	
 Notification Of Modification Or Supplemental Indenture To
       The U.K. Financial Services Authority

 	
  

 	
 60

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 10

 
	
 COVENANTS

 
	
  

 
	
 Section
 10.01.

 	
  

 	
  Payment Of Principal,
 Premium, and Interest

 	
  

 	
 60

 
	
 Section
 10.02.

 	
  

 	
  Maintenance of Office or
 Agency

 	
  

 	
 61

 
	
 Section
 10.03.

 	
  

 	
  Money for Payments to be Held
 in Trust

 	
  

 	
 61

 
	
 Section
 10.04.

 	
  

 	
  Additional Amounts

 	
  

 	
 63

 
	
 Section
 10.05.

 	
  

 	
  Corporate Existence

 	
  

 	
 65

 
	
 Section
 10.06.

 	
  

 	
  Statement as to Compliance

 	
  

 	
 65

 
	
 Section
 10.07.

 	
  

 	
  Original Issue Document

 	
  

 	
 65

 

iii

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 11

 
	
 REDEMPTION OF SUBORDINATED DEBT SECURITIES

 
	
  

 
	
 Section
 11.01.

 	
  

 	
 Applicability of Article

 	
  

 	
 65

 
	
 Section
 11.02.

 	
  

 	
 Election to Redeem; Notice to Trustee

 	
  

 	
 65

 
	
 Section
 11.03.

 	
  

 	
 Selection by Trustee of Subordinated Debt Securities to Be Redeemed

 	
  

 	
 66

 
	
 Section
 11.04.

 	
  

 	
 Notice of Redemption

 	
  

 	
 66

 
	
 Section
 11.05.

 	
  

 	
 Deposit of Redemption Price

 	
  

 	
 67

 
	
 Section
 11.06.

 	
  

 	
 Subordinated Debt Securities Payable on Redemption Date

 	
  

 	
 67

 
	
 Section
 11.07.

 	
  

 	
 Subordinated Debt Securities Redeemed in Part

 	
  

 	
 68

 
	
 Section
 11.08.

 	
  

 	
 Optional Redemption Due to Changes in Tax Treatment

 	
  

 	
 68

 
	
 Section
 11.09.

 	
  

 	
 Optional Redemption For Regulatory Purposes

 	
  

 	
 69

 
	
 Section
 11.10.

 	
  

 	
 Early Redemption – U.K. Financial Services Authority Consent

 	
  

 	
 69

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 12

 
	
 SUBORDINATION
 OF SUBORDINATED DEBT SECURITIES

 
	
  

 
	
 Section
 12.01.

 	
  

 	
 Subordinated Debt Securities Subordinate to Claims of Senior
 Creditors

 	
  

 	
 70

 
	
 Section
 12.02.

 	
  

 	
 Provisions Solely to Define Relative Rights

 	
  

 	
 71

 
	
 Section
 12.03.

 	
  

 	
 Trustee to Effectuate Subordination

 	
  

 	
 71

 
	
 Section
 12.04.

 	
  

 	
 No Waiver of Subordination Provisions

 	
  

 	
 71

 
	
 Section
 12.05.

 	
  

 	
 Notice to Trustee

 	
  

 	
 72

 
	
 Section
 12.06.

 	
  

 	
 Reliance on Judicial Order or Certificate of Liquidating Agent

 	
  

 	
 72

 
	
 Section
 12.07.

 	
  

 	
 Trustee Not Fiduciary for Senior Creditors

 	
  

 	
 73

 
	
 Section
 12.08.

 	
  

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

 	
  

 	
 73

 
	
 Section
 12.09.

 	
  

 	
 Article Applicable to Paying Agents

 	
  

 	
 73

 
	
 Section
 12.10.

 	
  

 	
 Exchanges Not Deemed Payment

 	
  

 	
 73

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 13

 
	
 EXCHANGE
 OF SUBORDINATED DEBT SECURITIES

 
	
  

 
	
 Section
 13.01.

 	
  

 	
 Applicability of Article

 	
  

 	
 74

 
	
 Section
 13.02.

 	
  

 	
 Election to Exchange; Notice to Trustee

 	
  

 	
 74

 
	
 Section
 13.03.

 	
  

 	
 Notice of Exchange

 	
  

 	
 74

 
	
 Section
 13.04.

 	
  

 	
 Deposit of Interest

 	
  

 	
 75

 
	
 Section
 13.05.

 	
  

 	
  Surrender of Subordinated
 Debt Securities

 	
  

 	
 75

 
	
 Section
 13.06.

 	
  

 	
 Issuance of Preference Shares or Exchange Securities

 	
  

 	
 76

 
	
 Section
 13.07.

 	
  

 	
  Effect of Exchange

 	
  

 	
 76

 
	
 Section
 13.08.

 	
  

 	
 Validity of Preference Shares or Exchange Securities

 	
  

 	
 77

 
	
 Section
 13.09.

 	
  

 	
 Legal and Regulatory Compliance

 	
  

 	
 77

 

iv

	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Section
 13.10.
 	
  
 	
 Taxes and Charges
 	
  
 	
 78
 
	
 Section
 13.11.
 	
  
 	
 Trustee Not Liable
 	
  
 	
 79
 
	
 Section
 13.12.
 	
  
 	
 Exchange – U.K. Financial Services Authority Consent
 	
  
 	
 79
 
	
  
 	
  
 	
  
 	
  
 	
  
 

v

          SUBORDINATED
DEBT SECURITIES INDENTURE, dated as of [•] between LLOYDS BANKING GROUP
plc, a company incorporated in Scotland with registered number 095000 (the “Company”),
and THE BANK OF NEW YORK MELLON (previously named The Bank of New York), 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 without coupons for payments attached, or represented
by definitive Subordinated Debt Securities 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; 

 

1

	
  

 	
  

 
	
  

 	
           (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 the International Financial Reporting Standards; 

 
	
  

 	
  

 
	
  

 	
           (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. 

 

          “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. 

          “Additional Subordinated Debt Securities”
has the meaning set forth in Section 3.12. 

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

          “ADR Deposit Agreement” means the Deposit
Agreement dated as of [•], 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
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. 

2

          “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 Company which may include
through the members of DTC, Euroclear and Clearstream Banking. 

          “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. 

          “Capital Regulations” means, at any time,
the regulations, requirements, guidelines and policies relating to capital
adequacy of the U.K. Financial Services Authority then in effect. 

3

          “Capital Disqualification Event” is deemed
to have occurred if, at any time, the Company is required under Capital
Resources Requirements to have regulatory capital, the Subordinated Debt
Securities would no longer be eligible to qualify in whole or in part (save
where such non-qualification is only as a result of any applicable limitation
on the amount of such capital) for inclusion in the Lower Tier 2 Capital of the
Company on a consolidated basis. 

          “Capital Resources Requirement” and “Overall Financial Adequacy Rule” have the
respective meanings given to such terms in the Capital Regulations and shall
include any successor terms from time to time equivalent thereto as agreed
between the Company and the Trustee. 

          “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
Officer of the Company, 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 Amounts” means any Deferred
Interest (including any interest amounts accrued thereon) and any amount of
principal and/or premium payment of which has been deferred pursuant to Section
3.07 (including any interest amounts accrued thereon) which has not been
satisfied. 

4

          “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 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. 

          “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., 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” means securities
issued by the Company provided that such securities shall contain terms which
comply with the then current requirements of the FSA in relation to Lower Tier
2 Capital, Upper Tier 2 Capital or Tier 1 Capital. 

          “Executive Officer” means
    any executive officer or any authorized person as defined in the minutes
of a committee of the Board of Directors held on [•], and, in each case, any other person authorized by a Board
Resolution to carry out the functions such officer performs. 

5

          “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. 

          “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. 

          “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. 

          “Lower Tier 2 Capital” has the meaning given
to it by the FSA from time to time. 

          “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 counsel, who may be an internal counsel employed by the Company or legal
advisors for the Company, or otherwise, such Opinion of Counsel to be
acceptable to the Trustee. 

6

          “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 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.

7

          “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.

          “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.

          “Preference
Shares” means a designated series of non-cumulative preference
shares, nominal value of $0.25 each, of the Company for which, if applicable to
a particular series of Subordinated Debt Securities, the Company may exchange
any series of Subordinated Debt Securities.

          “Qualifying
Administration” means that an administrator has been appointed to
the Company and notice has been given that it intends to declare and distribute
a dividend.

          “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.

8

          “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 Subordinated Debt Securities of any series means, unless
otherwise specified in accordance with Section 3.01, the date which is 15
calendar days prior to the applicable payment date. If such 15th day is not a
Business Day, the record date for determination will be the next succeeding
Business Day.

          “Relevant
Supervisory Consent” means any necessary prior consent of or,
following the giving of due notice, no objection being received to, the
relevant redemption, payment, repayment, purchase, modification or
substitution, as the case may be, from, the U.K. Financial Services Authority.

          “Responsible
Officer”, when used with respect to the Trustee, means any managing
director, director, vice president, associate, trust officer or other officer
of the Trustee assigned to or working in the Corporate Trust Office 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 (a) creditors of the Company whose claims are
admitted to proof in the winding up or Qualifying Administration of the Company
and who are unsubordinated creditors of the Company; and (b) creditors of the
Company whose claims are or are expressed to be subordinated to the claims of
other creditors of the Company (other than those whose claims constitute, or
would but for any applicable limitation on the amount of such capital,
constitute, Tier 1 Capital or Upper Tier 2 Capital or whose claims rank or are
expressed to rank pari passu with, or junior to, the claims of Holders).

          “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 or interest
(as the case may be) 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.

9

          “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”
means a subsidiary or a subsidiary undertaking as such terms are defined in
Section 1159 and 1162 of the Companies Act 2006 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.

          “Tier 1
Capital” has the meaning given to it by the FSA from time to time.

          “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.

          “U.K.
Financial Services Authority” or “FSA” means the Financial Services
Authority or such other governmental authority in the United Kingdom (or if the
Company becomes domiciled in a jurisdiction other than the United Kingdom, in
such other jurisdiction) having primary supervisory authority with respect to
the Company. 

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

10

          “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.

          “Upper Tier 2
Capital” has the meaning given to it by the FSA from time to time.

          “U.S.
Government Obligations” means non-callable (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. Except as otherwise expressly provided by this Indenture, 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 (other than Section
10.06) 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;

11

          (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
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.

12

          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.

          (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 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, and the Trustee agrees to accept and act upon
facsimile transmission of written instructions pursuant to this Senior Debt
Securities Indenture; provided, however, that (x) the party providing such
written instructions, subsequent to such transmission of written instructions,
shall provide the originally executed instructions or directions to the Trustee
in a timely manner, and (y) such originally executed instructions
or directions shall be signed by an authorized representative of the party
providing such instructions or directions; or

13

          (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 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 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
and the rules of the Luxembourg Stock Exchange so require, all notices to
Holders, will be published in an Authorized Newspaper in Luxembourg.

14

          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.

          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.

15

          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 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 the Chief U.S. Counsel, Lloyds TSB Bank
plc (or any successor thereto), currently of 1095 Avenue of the Americas, 34th
Floor, New York, NY 10036 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 Chief
U.S. Counsel 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 right to trial by jury and 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 wilful 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.

16

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 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 and claims 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.

17

          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.

	
  

 	
  

 	
  

 
	
  

 	
 Dated:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF
 NEW YORK MELLON

 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);

18

          (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 terms applicable to deferred payments and the Regular
Record Date for the interest payable on any Interest Payment Date, the Deferred
Record Date for 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;

19

          (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 Preference Shares or Exchange Securities
pursuant to Article 13 and if so the terms of the 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 Place of Payment and the manner 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;

20

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

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

          (u)
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 Executive Officer to the Company. The
signature of any Executive Officer 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 individual has ceased
to hold such offices prior to the authentication and delivery of such
Subordinated Debt Securities.

21

          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 (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
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. [Reserved].

          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.

22

          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, without Coupons attached thereto, which shall be authenticated as contemplated
by this Indenture.

          Each
Global Security 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 authenticated under this Indentures shall be
initially registered in the name of DTC only.

          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 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 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. 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 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 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.

23

          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 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
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 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 (i) 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 (ii) 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.

24

          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 (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 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.

          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, Subordinated Debt
Securities of any series and any Deferred Amounts thereon may only be exchanged
for a like aggregate principal amount of Subordinated Debt Securities of such
series of other authorized denominations containing identical terms and
provisions and right to any Deferred Amounts. 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 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 and transfers of Subordinated Debt Securities as herein provided.

25

          Subordinated
Debt Securities shall be transferable only on the Subordinated Debt Security
Register. Upon surrender for registration of transfer of any 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 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 Subordinated Debt Security
is transferred, a new 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 transferor, within three Business Days after the Trustee acting
as Paying Agent pursuant to Section 10.02 received the Subordinated Debt
Security. The new 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
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 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.

26

          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.

          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.

27

          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 (subject to Sections 5.08, 12.01 and (b)
below) 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 (and premium, if any), 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 (otherwise then pursuant to
(b) below) shall not constitute a Default by the Company or otherwise allow any
Holder to sue the Company for such 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 subject to Sections
12.01, 5.08 and (b) below. 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)
The Company shall satisfy in full any amounts deferred pursuant to this Article
3.07 which have not been satisfied at the relevant time in cash:

	
  

 	
  

 
	
  

 	
           (i) on
 the Stated Maturity of the Subordinated Debt Securities;

 
	
  

 	
  

 
	
  

 	
           (ii) on
 any redemption of the Subordinated Debt Securities in accordance with Article
 11;

 
	
  

 	
  

 
	
  

 	
           (iii) on
 any exchange of the Subordinated Debt Securities in accordance with Article
 13; and/or

 
	
  

 	
  

 
	
  

 	
           (iv) in a
 case where Section 12.01 applies.

 

          (c)
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 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) at the close of
business on the Regular Record Date for such interest.

28

          In
the case of 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 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
called “Deferred
Interest”. Deferred Amounts on any 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 Amounts may be paid, in the case of Subordinated Debt Securities, to
the extent such Deferred Amounts are paid on a Deferred Payment Date, 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 Deferred Amounts 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 and to the extent such
Deferred Amounts are paid on any other date pursuant to (b) above, 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 (including any
Deferred Amounts), and to accrue, which were carried by such other Subordinated
Debt Security.

          Section
3.08.
Persons Deemed Owners. Prior to due presentment of a 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 (subject to Section 3.07) of
principal of (and premium, if any) and 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.

29

          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.

          Section
3.12.
Additional Subordinated Debt Securities. The Company may, from time
to time, without the consent of the Holders of the Subordinated Debt Securities
of any series, issue additional Subordinated Debt Securities of one or more of
the series of Subordinated Debt Securities issued under this Subordinated Debt
Securities Indenture, having the same ranking and same interest rate, Maturity,
redemption terms and other terms, except for the price to the public and issue
date and first Interest Payment Date, as the Subordinated Debt Securities;
provided, however, that such additional Subordinated Debt Securities must be
fungible with the Subordinated Debt Securities for U.S. federal income tax
purposes. Any such additional Senior Debt Securities, together with the
Subordinated Debt Securities of the applicable series, will constitute a single
series of Subordinated Debt Securities under this Subordinated Debt Securities
Indenture and shall be included in the definition of “Subordinated Debt Securities”
in this Subordinated Debt Securities Indenture where the context requires.

30

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, subject to
Section 4.04, 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 Preference Shares or Exchange Securities and notice of
 exchange of such Subordinated Debt Securities for 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 Currency) maturing, in the case of (A) and (B) above, as to principal
 and interest (including any Deferred Amounts), if any, and, in the case of
 (C) above, as to accrued interest, if any, and any Deferred Amounts 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 (including any Deferred Amounts), if any, and, in the case of (C)
 above, as to accrued interest, if any, and any Deferred Amounts 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;

 

31

	
  
 	
  
 

          (b)
the Company has paid or caused to be paid all other sums payable hereunder
(including any accrued but unpaid interest and any Deferred Amounts) 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.

32

          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 Subordinated Debt Securities.

          Section
4.04 U.K.
Financial Services Authority Consent. The Company may only make a
Company Request as provided under Article 4 of this Indenture provided that the
Company (a) has notified the U.K. Financial Services Authority of its intention
to do so at least one month (or such other period, longer or shorter, as the
U.K. Financial Services Authority may then require or accept) prior to the
Company making such Company Request and a Relevant Supervisory Consent has been
received prior to the Company making such Company Request and (b) has satisfied
the U.K. Financial Services Authority that, after satisfaction and discharge of
this Subordinated Debt Securities Indenture with respect to the Subordinated
Debt Securities of such series, the Company will be able to meet its Capital
Resources Requirement and have sufficient financial resources to meet its
Overall Financial Adequacy Rule.

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
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 on terms previously approved by the Trustee not
involving bankruptcy or insolvency).

          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, together with
accrued interest (if any), Deferred Amounts (if any) and Additional Amounts (if
any), payable on such Subordinated Debt Securities (or, in the case of Discount
Securities, the accreted face amount together with accrued interest, if any,
and Additional Amounts (if any) on such Discount Securities), 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 amount shall become
immediately due and payable.

33

          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 (including any deferred 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 Deferred 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.

          If
the Subordinated Debt Securities become due and payable (whether pursuant to
this Section 5.02 above or Article 11 below) and the Company fails to pay such
amounts (or any damages awarded for breach of any obligations in respect of the
Subordinated Debt Securities or this Indenture) forthwith upon demand,
notwithstanding the continuing right of any Holder to receive payment of the
principal of and interest together with Deferred Amounts (if any) on
Subordinated Debt Securities, or to institute suit for the enforcement of any
such payment, the Trustee, in its own name and as trustee of an express trust,
may institute proceedings for the winding up of the Company in Scotland but not
elsewhere, and/or prove in a winding up of the Company or in a Qualifying
Administration for all such due and payable amounts (including any damages
awarded for breach of any obligations in respect of the Subordinated Debt
Securities or this Indenture) but no other remedy shall be available to the
Trustee.

34

          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 (subject as provided below, 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 instalment of interest on any Subordinated Debt
Security of such series on or before its Deferred Payment Date or other date
specified for the payment of Deferred Amounts in Section 3.07(b) 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 institute proceedings in
Scotland (but not elsewhere) for the winding-up of the Company and/or prove in
a winding-up of the Company or a Qualifying Administration.

          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, liquidation of the Company
or a Qualifying Administration. Notwithstanding the above, if any of such
rights and claims of any such Holder against the Company are discharged by
set-off, such Holder will immediately pay an amount equal to the amount of such
discharge to the Company or, in the event of the winding up of the Company or a
Qualifying Administration, the liquidator or administrator (or other relevant
insolvency official), as the case may be, and until such time as payment is
made will hold a sum equal to such amount in trust for the Company or the
liquidator or administrator (or other relevant insolvency official), as the
case may be, and accordingly such discharge shall be deemed not to have taken
place.

35

          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 and we
deliver an Opinion of Counsel concluding that such sums were not paid in order to comply with any fiscal or other law or
regulation or with the order of any court of competent jurisdiction, 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.

          Except
as otherwise provided in this Article 5, the Trustee may in its discretion
proceed to protect and enforce its rights and the rights of the Holders of
Subordinated Debt Securities of such series by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law. 

          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.

36

          Section
5.04.
Trustee May File Proofs of Claim. In case of the pendency of any
winding-up relative to the Company or any Qualifying Administration upon the
Subordinated Debt Securities of any series (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; provided that the Company shall not, as a result of the
bringing of such proceedings, be obliged to pay any sum representing or
measured by reference to principal, premium or interest on the Subordinated Debt
Securities sooner than the same would otherwise have been payable by it. 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 first 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.

37

          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, subject to the provisions of
Section 5.03 in relation to waiver and set-off and Section 12.01 in relation to
subordination, 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 (including Deferred Amounts), 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 accordance with Sections
5.02 to 5.05 hereof 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; 

38

          (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. Subject to Section
12.01 in relation to subordination (subject to Section 3.07), 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
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) or in the case of deferral of such amounts under Article 3.07, on the
relevant Deferred Payment Date or date otherwise specified in Section 3.07(b)
for payment of Deferred Amounts 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 and without prejudice to Section 5.02, 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 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, subject as aforesaid, prevent the concurrent assertion or
employment of any other appropriate right or remedy. 

39

          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 hereunder, or exercising any trust or power conferred on the
Trustee hereunder with respect to the Subordinated Debt Securities of such
series, provided that the
direction is in writing and the Trustee has been offered indemnity and/or
security satisfactory to it in its sole discretion and: 

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

          (b)
the action so directed would not 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 

40

          (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. 

          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. 

41

          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 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 (except for a payment default) 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 and/or an Opinion
of Counsel; 

          (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 conclusive 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 security
and/or indemnity satisfactory to it in the Trustee’s sole discretion against
the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction, and the Trustee may act at the direction of the
requisite percentage of Holders without liability; 

42

          (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, 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; 

          (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; and 

          (k)
the Trustee bank in any other agency role hereunder shall have the same rights,
protections, reimbursement and indemnity as is accorded the Trustee pursuant to
this Section 6.03. 

43

          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 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
in writing 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 in a fee letter which
may be amended 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 (which for purposes of this subparagraph Section
6.07(c) shall be deemed to include its directors, officers, employees and
agents) 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 with respect to duties expressly stated in
this Indenture, 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. 

44

          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 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. 

          The
Trustee’s right to reimbursement and indemnity under this Section 6.07 shall
survive the payment in full of the Senior Debt Securities, the discharge of the
Indenture, and the resignation or removal of the Trustee. 

          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 banking 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 banking 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 banking
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.

45

          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. 

          (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 

 

46

	
  

 	
  

 
	
  

 	
           (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. 

          (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. 

47

          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. 

          (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.

48

          (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. 

          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). 

49

          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 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 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. 

50

          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. 

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF NEW YORK MELLON

 as Trustee 

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 THE BANK OF NEW YORK MELLON

 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, 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 Subordinated Debt Securities as of such Regular Record Date or such
specified date, and 

51

          (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 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
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 [•] 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. 

52

          (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. 

          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 actual or 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 

53

          (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. Subject
always to Section 8.04 below, the Company may, without the consent of Holders
of any Subordinated Debt 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 (including any Deferred Amounts), 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; 

          (b)
immediately after giving effect to such transaction, 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 happened and be continuing;
and 

          (c)
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. 

54

          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 (including any Deferred Amounts),
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: 

          (a)
there is no Event of Default or Default continuing in relation to the relevant
series of Subordinated Debt Securities; 

          (b)
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; 

          (c)
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 (subject to the exceptions specified therein) provided, however, that for these purposes
such successor entity’s country of organization will be substituted for
the references to the United Kingdom in the definition of “Taxing Jurisdiction”; 

55

          (d)
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 

          (e)
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 (provided, however,
that the right of the successor to redeem the Subordinated Debt Securities of
the relevant series shall only apply with respect to any change or amendment
to, or change in the application or official interpretation of, the laws or
regulations (including any treaty) of the successor’s jurisdiction of
incorporation which occurs after the date of assumption), 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. 

          If
the Company makes payment under the guarantee, the Company shall be required
    to pay all Additional Amounts, if any, payable pursuant to Section 10.04
    in respect of the Subordinated Debt Securities (subject to the exceptions
    set forth therein), provided, however, that
for purposes of payment by the Company under the guarantee, the definition of
“Taxing Jurisdiction” shall include the successor entity’s country
of organization and the United Kingdom. 

          Section
8.04. Notification Of Assumption Or
Substitution To The U.K. Financial Services Authority. No such
assumption or substitution as is referred to in either Section 8.02 or 8.03
shall be effected in relation to any series of Subordinated Debt Securities,
unless the Company has notified the U.K. Financial Services Authority of its
intention to do so at least one month (or such other period, longer or shorter,
as the U.K. Financial Services Authority may then require or accept) prior to
the date scheduled therefor and a Relevant Supervisory Consent therefor has
been received. 

56

ARTICLE 9

SUPPLEMENTAL INDENTURES 

          Section
9.01. Supplemental Indentures without
Consent of Holders. Subject
always to Section 9.07 below, 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 fewer 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; 

          (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; 

57

          (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. Subject always to Section 9.07 below, with the consent
of the Holders of not less than 2/3 (two thirds) 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 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 the date any such payment is
otherwise due and payable (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 

58

          (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. 

          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.

59

          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. 

          Section
9.07. Notification Of Modification Or
Supplemental Indenture To The U.K. Financial Services Authority. No
such modification shall be effected in relation to any series of Subordinated
Debt Securities, unless the Company has notified the U.K. Financial Services
Authority of its intention to do so at least one month (or such other period,
longer or shorter, as the U.K. Financial Services Authority may then require or
accept) prior to the date scheduled therefor and a Relevant Supervisory Consent
has been received. 

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 (subject to Section 3.07)
duly and punctually pay the principal of (and premium, if any) and interest if
any, on, the Subordinated Debt Securities of that series in accordance with the
terms of the Subordinated Debt Securities and this Subordinated Debt Securities
Indenture. 

60

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

61

          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
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.

62

          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 is 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; 

 
	
  

 	
  

 
	
  

 	
           (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

 

63

	
  
 	
  
 
	
  
 	
  
 
	
  
 	
           (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,
 premium, if any, 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 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 European Council
 Directive 2003/48/EC on the taxation of savings income 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, premium, if any,
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 or 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. 

64

          Whenever
in this Subordinated Debt Securities Indenture there is mentioned, in any
context, the payment of the principal  (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, (i) within 120 days after the end of each
fiscal year; and (ii) within 5 Business Days of a written request from the
Trustee, 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 for U.S. federal income tax purposes. 

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.
Subordinated Debt Securities of any series may not be redeemed except in
accordance with provisions of applicable law, applicable provisions of the
Capital Regulations and Section 11.10 below. The Subordinated Debt Securities
of any series may not be redeemed in whole or in part at the option of the
Holder thereof. 

          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 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. 

65

          Section
11.03. Selection by Trustee of Subordinated
Debt Securities to Be Redeemed. If fewer 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 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, all in
accordance with the rules and regulations of the applicable clearing system. 

          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 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, 

          (c)
if fewer 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, 

66

          (d)
that on the Redemption Date the Redemption Price, any accrued but unpaid
interest and any Deferred Amounts 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, and the Company
shall deliver written notice thereof to the Trustee no less than 10 Business
Days prior to the date of the notice to Holders of Subordinated Debt
Securities. 

          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 (including any Deferred
Amounts) 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 (including any Deferred Amounts); provided, however, that with respect to
any Subordinated Debt Securities, unless otherwise specified as contemplated
by Section 3.01, a payment of interest which is payable on an 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. 

67

          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, 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 and subject
always to Section 11.10 below, 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 (including any Deferred Amounts), 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 application or interpretation of such laws or
regulations (including a decision of any court or tribunal) or any generally
published pronouncement by any relevant tax authority which change, amendment
or pronouncement becomes effective or applicable 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 a “distribution” within
the meaning of Section 1000 of the Corporation Tax Act 2010 of the United
Kingdom (or any statutory modification or re-enactment thereof for the time
being); 

68

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

          (d)
the Company would not be entitled to have all or any part of any loss resulting
from such deduction being taken into account in computing its taxation
liabilities set against the profits of companies with which it is grouped for
applicable UK tax purposes (whether under the group relief system current as at
the date of this Indenture or any similar system or systems having like effect
as may from time to time exist). 

          In
any case where the Company shall determine that as a result of any change in
the 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 (i) 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 application or interpretation of such laws
    or regulations has occurred and that the Company is entitled to exercise
    its right of redemption or (ii) an Officer’s
    Certificate, evidencing compliance with such provisions and stating that
    it is entitled to redeem the Subordinated Debt Securities pursuant to the
    terms of the Subordinated Debt Securities. 

          Section
11.09. Optional Redemption For Regulatory
Purposes. Unless otherwise provided as contemplated by Section 3.01
with respect to any series of Subordinated Debt Securities and subject always
to Section 11.10 below, 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, at any time, at a redemption price equal to 100%
of the principal amount, together with accrued but unpaid interest (including
any Deferred Amounts), 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, immediately prior to the giving of the notice referred to above,
a Capital Disqualification Event has occurred and is continuing. 

          Section
11.10. Early Redemption – U.K. Financial
Services Authority Consent. Subordinated Debt Securities may only be
redeemed by the Company as provided under Article 11 of this Indenture;
provided that the Company (a) has notified the U.K. Financial Services
Authority of its intention to do so at least one month (or such other period,
longer or shorter, as the U.K. Financial Services Authority may then require or
accept) prior to the Company becoming committed to the proposed repayment and a
Relevant Supervisory Consent has been received prior to the Company becoming
committed to the proposed repayment; and (b) has satisfied the U.K. Financial Services
Authority that, after such repayment, the Company will
be able to meet its Capital Resources Requirement and have sufficient financial
resources to meet its Overall Financial Adequacy Rule. 

69

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 12, in the event of: 

	
  

 	
  

 
	
  

 	
           (i)
 an order being made, or an effective resolution being passed, for the
 winding-up of the Company (except, in any such case, a solvent winding-up
 solely for the purposes of a reorganisation, reconstruction or amalgamation
 of the Company, the terms of which reorganisation, reconstruction,
 amalgamation (x) have previously been approved in writing by the Trustee and
 (y) do not provide that the Subordinated Debt Securities shall thereby become
 redeemable or repayable in accordance with these Conditions); or 

 
	
  

 	
  

 
	
  

 	
           (ii)
 a Qualifying Administration, 

 
	
  

 	
  

 
	
  

 	
 the Holders
 will have a right against the Company in respect of or arising under
 (including any damages awarded for breach of any obligations under) the
 Subordinated Debt Securities and the Indenture relating to them to claim for
 all amounts due to them in respect of the Subordinated Debt Securities
 including the principal amount thereof (plus any premium) and any accrued but
 unpaid interest and any Deferred Amounts thereon. Such rights and claims will
 be subordinated in the manner provided in this Section 12.01 to the claims of
 all Senior Creditors but shall rank at least pari passu with the claims of
 holders of all other subordinated obligations of the Company which
 constitute, or would but for any applicable limitation on the amount of such
 capital constitute, Lower Tier 2 Capital and shall rank in priority to the
 claims of holders of all undated or perpetual subordinated obligations of the
 Company and to the claims of holders of all classes of share capital of the
 Company. 

 

70

          (b)
The provisions of this Article 12 shall apply only to rights or claims payable
under Section 12.01(a) or to amounts payable pursuant thereto and under any
Subordinated Debt Securities of any series and nothing herein shall affect or
prejudice the payment of the costs, charges, expenses, liabilities, indemnity
or remuneration of the Trustee, the first lien rights of the Trustee under
Section 5.06 hereof, or the rights and remedies of the Trustee in respect
thereof. 

          (c)
The provisions of this Article 12 shall not be applicable to any amounts 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 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 12.01 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
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.

71

          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 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 administrator 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 Twelve. 

72

          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  only, delivery of 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. 

73

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 and subject always to Section 13.12, 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 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; 

74

          (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 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 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 and Deferred Amounts, 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 due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee) accompanied by written notice
specifying the Persons (a) in the case of 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 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. 

75

          Section
13.06. Issuance of 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 Preference Shares, unless the Company shall have
notified the Trustee otherwise in accordance with Section 13.03, deliver or
procure the delivery of a single share warrant to bearer to the ADR Depositary
representing all of the 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 Preference Shares (or the rights to receive such
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 Preference Shares, 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 Preference Shares to such
Holder and, in the case of 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 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. 

76

          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 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
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 Preference Shares or Exchange Securities and shall have the
same rights with respect to, and shall be deemed to be the Holder of, such
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 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
Preference Shares or Exchange Securities upon each exchange of the Outstanding
Subordinated Debt Securities. The Company covenants that the 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 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 Preference Shares or Exchange Securities; 

          (d)
the 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 Preference Shares or Exchange Securities to be
issued upon such exchange; 

77

          (f)
the issuance and delivery of the 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
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 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 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 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 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
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. 

78

          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 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 responsible for any
failure of the Company to issue, transfer or deliver or procure the delivery of
any 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. 

          Section
13.12. Exchange – U.K. Financial Services
Authority Consent. Subordinated Debt Securities may only be
exchanged by the Company as provided under this Article 13 provided that the
Company (a) has notified the U.K. Financial Services Authority of its intention
to do so at least one month (or such other period, longer or shorter, as the
U.K. Financial Services Authority may then require or accept) prior to the
Company becoming committed to the proposed exchange and a Relevant Supervisory
Consent has been received prior to the Company becoming committed to the proposed
exchange; and (b) has satisfied the U.K. Financial Services Authority that,
after such exchange, the Company will be able to meet its Capital Resources
Requirement and have sufficient financial resources to meet its Overall
Financial Adequacy Rule. 

          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. 

79

          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. 

	
  

 	
  

 	
  

 
	
  

 	
 LLOYDS
 BANKING GROUP plc

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
   

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
   

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF
 NEW YORK MELLON

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
   

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

80

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