Document:

EX-4.2

 

Exhibit 4.2

HSBC HOLDINGS PLC

and

THE BANK OF NEW YORK

 

SUPPLEMENTAL INDENTURE

Dated as of December 3, 2004

 

7.35 % Subordinated Notes due 2032

 

 

SUPPLEMENTAL INDENTURE, dated as of December 3, 2004 (the “Supplemental Indenture”),
between HSBC Holdings plc, a public limited company organized under the laws of England and Wales
(the “Company”) and The Bank of New York (the “Trustee”), as Trustee.

WHEREAS the Company and the Trustee have executed and delivered an Indenture dated as of December
10, 2002 (the “Indenture”);

WHEREAS Section 9.01 of the Indenture provides that the Company, without the consent of any Holders
of Debt Securities, when authorized by or pursuant to a Board Resolution, and the Trustee, at any
time and from time to time, may enter into one or more indentures supplemental thereto, in form
satisfactory to the Trustee to establish the form or terms of Debt Securities of any series as
permitted by Section 2.01 and Section 3.01 of the said Indenture;

WHEREAS the Company has offered to exchange any and all existing 7.35% Notes due 2032 of Household
Finance Corporation (the “Household Notes”) for the Company’s 7.35% Subordinated Notes due
2032 (the “Notes”) in an exchange offer (the “Exchange Offer”) under the terms and
conditions set forth in the offering memorandum dated October 27, 2004 (the “Offering
Memorandum”);

WHEREAS the Company, upon completion of the Exchange Offer, will issue the Notes to tendering
holders of the Household Notes in exchange for the Household Notes;

WHEREAS all acts and things necessary to issue the Notes and to make this Supplemental Indenture a
valid agreement of the Company and the Trustee, in accordance with its terms, have been done;

NOW, THEREFORE, each party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of the Notes issued hereunder.

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1 Definitions.

     “Agent” means any Registrar, Paying Agent, authenticating agent or co-registrar.

     “Book-Entry Depositary” means the depositary designated by the Company in the Deposit
Agreement until a successor depositary shall have become such pursuant to applicable provisions of
the Deposit Agreement, and thereafter “Book-Entry Depositary” shall mean such successor depositary.

     “Book-Entry Interests” means interests maintained in book-entry form in the Certificateless
Depositary Interests.

     “Certificateless Depositary Interests” or “CDIs” means the certificateless depositary
interest, issued by the Book-Entry Depositary to DTC or its nominee pursuant to the Deposit
Agreement, that represents a 100% interest in a Global Note issued under this Supplemental
Indenture.

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     “Closing Date” means the date on which the Notes are originally issued under this Supplemental
Indenture.

     “Definitive Registered Security” means any Note registered in the Registrar’s books,
substantially in the form attached hereto as Exhibit C. For purposes of the Indenture, the
Definitive Registered Security is a Registered Security.

     “Deposit Agreement” means the Book-Entry Deposit Agreement dated the date of this Supplemental
Indenture among the Company, HSBC Bank USA, National Association and the holders and beneficial
owners referred to therein.

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

     “Exchange Notes” means any securities of the Company containing terms identical to the Notes
(except that such Exchange Notes shall be registered under the Securities Act) that are issued and
exchanged for the Notes pursuant to the Registration Rights Agreement and this Indenture.

     “Global Notes” means the Rule 144A Global Notes, the Regulation S Global Notes and the
Unrestricted Global Notes, collectively. For purposes of the Indenture, the Global Notes are
Permanent Global Securities.

     “Initial Global Notes” means the Rule 144A Global Note and the Regulation S Global Note.

     “Non-U.S. Person” means a person who is not a “U.S. person” as defined under Regulation S.

     “Notes” means the 7.35 % Subordinated Notes due 2032 of the Company denominated in U.S.
dollars issued, authenticated and delivered under the Indenture as supplemented by this
Supplemental Indenture and as amended or supplemented from time to time pursuant to the terms of
the Indenture and includes any Exchange Notes to be issued and exchanged for Notes pursuant to the
Registration Rights Agreement and the Indenture.

     “Participant” means, with respect to DTC, a Person who has an account with DTC.

     “Private Placement Legend” means the legend initially set forth on the Notes in the form set
forth in Section 2.2.

     “QIB” means a “qualified institutional buyer” as defined under Rule 144A.

     “Registered Exchange Offer” has the meaning set forth in Section 3.1.

     “Registration Rights Agreement” has the meaning set forth in Section 4.1.

     “Registration Statement” means the Registration Statement as defined in the Registration
Rights Agreement.

     “Regulation S” means Regulation S under the Securities Act.

     “Regulation S Definitive Registered Security” means a Definitive Registered Security issued in
respect of an interest in a Regulation S Global Note.

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     “Regulation S Global Note” means the bearer global Note or Notes without coupons,
substantially in the form of Exhibit B attached hereto and deposited with the Book-Entry
Depository, which will represent all of the Notes sold outside of the United States unless or until
Definitive Registered Securities are issued in respect of all or any Notes represented by the
Regulation S Global Note in which case the “Regulation S Global Note” will represent all those
Notes which are not from time to time evidenced by Regulation S Definitive Registered Securities.

     “Rule 144A” means Rule 144A under the Securities Act.

     “Rule 144A Definitive Registered Security” means a Definitive Registered Security issued in
respect of an interest in a Rule 144A Global Note.

     “Rule 144A Global Note” means the bearer global Note or Notes without coupons, substantially
in the form of Exhibit A attached hereto and deposited with the Book-Entry Depositary, which will
represent all of the Notes sold in the United States, unless or until Definitive Registered
Securities are issued in respect of all or any Notes represented by the Rule 144A Global Note in
which case the “Rule 144A Global Note” will represent all those Notes which are not from time to
time evidenced by Rule 144A Definitive Registered Securities.

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

     “Unrestricted Global Note” means any Global Note that does not and is not required to bear the
Private Placement Legend.

     SECTION 1.2 Rules of Construction. All capitalized terms used but not defined herein
shall have the meaning ascribed to them in the Indenture. In this Supplemental Indenture, unless
the context otherwise requires:

	 	(a)	 	a term has the meaning assigned to it;
	 
	 	(b)	 	“or” is not exclusive;
	 
	 	(c)	 	words in the singular include the plural, and words in the plural include the
singular;
	 
	 	(d)	 	“herein,” “hereof” and other words of similar import refer to this Supplemental
Indenture as a whole and not to any particular Article, Section or other Subsection;
	 
	 	(e)	 	The symbol “$” refers to United States dollars, or such other money of the
United States that at the time of payment is legal tender for payment of public and
private debts.

ARTICLE II

THE NOTES

     SECTION 2.1 Form and Dating. The Notes and the Trustee’s certificate of
authentication with respect thereto shall be substantially in the form set forth in Exhibit A, in
the case of the Rule 144A Global Note, Exhibit B, in the case of the Regulation S Global Note,
Exhibit C, in the case of a Definitive Registered Security, and Exhibit D in the case of

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an Unrestricted Global Note with such appropriate insertions, omissions, substitutions and
other variations as are permitted or required by the Indenture. Each such Exhibit is annexed
hereto and is hereby incorporated in and expressly made a part of this Supplemental Indenture. The
Notes may have notations, legends or endorsements required by law, rule or usage to which the
Company is subject. Each of the Rule 144A Global Note and the Regulation S Global Note shall be
dated the Closing Date. Each Definitive Registered Security and each Unrestricted Global Note
shall be dated the date of its authentication. To the extent applicable, the Company and the
Trustee, by their execution of this Supplemental Indenture, expressly agree to the terms and
conditions of the Notes set forth in Exhibits A, B, C and D hereof and to be bound thereby.

     Notes initially offered and issued to QIBs shall be issued in the form of one or more
permanent global securities in bearer form, substantially in the form set forth in Exhibit A hereto
(a “Rule 144A Global Note”), duly executed by the Company and authenticated by the Trustee
as hereinafter provided and deposited with the Book-Entry Depositary for the benefit of DTC and its
Participants in accordance with the provisions of the Deposit Agreement.

     Notes issued to non-U.S. investors outside of the United States shall be issued in the form of
one or more permanent global certificates in bearer form, substantially in the form set forth in
Exhibit B hereto (a “Regulation S Global Note”), duly executed by the Company and
authenticated by the Trustee as hereinafter provided and deposited with the Book-Entry Depositary
for the benefit of DTC and its Participants in accordance with the provisions of the Deposit
Agreement.

     The aggregate principal amount of the Global Notes may from time to time be increased or
decreased by adjustments made on the records of the Book-Entry Depositary in accordance with
instructions given by DTC in accordance with the terms of the Deposit Agreement.

     Definitive Registered Securities may be issued from time to time in accordance with the
provisions of the Indenture, in the form of Exhibit C hereto.

     SECTION 2.2. Restrictive Legends. Unless and until a Note is exchanged for an
Exchange Note or sold in connection with an effective Registration Statement pursuant to the
Registration Rights Agreement, (i) the Rule 144A Global Notes and Rule 144A Definitive Registered
Securities shall bear the legend set forth below on the face thereof and (ii) until at least the
41st day after the Closing Date, the Regulation S Global Notes and the Regulation S Definitive
Registered Securities shall bear the legend set forth below on the face thereof.

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT OR IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.

     Each Global Note shall also bear the following legend on the face thereof:

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TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO A
SUCCESSOR BOOK-ENTRY DEPOSITARY AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.7 OF
THE SUPPLEMENTAL INDENTURE.

     SECTION 2.3 Execution and Authentication. The Notes originally issued hereunder and
any additional Notes issued hereunder shall be treated as a single class of securities for all
purposes under the Indenture. The Global Notes shall be issuable only in bearer form and the
Definitive Registered Securities shall be issuable only in registered form. The Notes shall be
issued without coupons and only in denominations of $1,000 principal amount or any integral
multiple thereof.

     SECTION 2.4 Holders to Be Treated as Owners. Notwithstanding Section 3.08 of the
Indenture, nothing therein or herein shall prevent the Company, the Trustee or any agent of the
Company or the Trustee, from giving effect to any written certification, proxy or other
authorization furnished by the Book-Entry Depositary or impair, as between DTC and its
Participants, the operation of customary practices governing the exercise of the rights of a
beneficial owner of any Note. Each person owning an interest in CDIs must rely on the procedures
of the Book-Entry Depositary and DTC and on the procedures of the DTC Participant through which
such person owns its interest to exercise any rights and obligations of a holder under the
Indenture or the Deposit Agreement.

     SECTION 2.5 Transfer and Exchange.

     (a) Definitive Registered Securities issued upon any exchange of beneficial interests in the
Rule 144A Global Note or the Regulations S Global Note pursuant to Section 3.05 of the Indenture
shall bear the legends set forth in Section 2.2 hereof and shall be subject to all restrictions on
transfer contained therein to the same extent as the Global Note so exchanged.

     (b) Upon the occurrence of the Registered Exchange Offer in accordance with the Registration
Rights Agreement, the Company shall issue and upon receipt of an authentication order in accordance
with Section 3.03 of the Indenture, the Trustee (or its agent in accordance with the said Section
3.03) shall authenticate one or more Unrestricted Global Notes in the form of Exhibit D hereto in
an aggregate principal amount equal to the principal amount of the Book-Entry Interests tendered
for acceptance by persons participating therein. The same Unrestricted Global Note may represent
interests in the Notes formerly represented by the Rule 144A Global Notes and those represented by
the Regulation S Global Notes. Such Unrestricted Global Notes shall have a single ISIN and Common
Code number. Concurrently with the issuance of any such Global Note, the Trustee shall cause the
aggregate principal amount of the applicable Initial Global Note to be reduced accordingly and
direct the Book-Entry Depositary to make a corresponding reduction in its book-entry system in
respect of the Certificateless Depositary Interest.

     SECTION 2.6 Book-Entry Provisions for Global Notes (a) The Global Notes
initially shall be delivered to the Book-Entry Depositary and the Rule 144A Global Note and the
Regulation S Global Note shall bear legends as set forth in Section 2.2.

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     (b) Transfers of any Global Note shall be limited to transfers of such Global Note in whole,
but not in part, and shall be made only as permitted under the Deposit Agreement. Transfers of
interests from one Global Note to another Global Note shall be effected by an increase or a
reduction in the aggregate principal amount of Notes represented by the first Global Note and the
corresponding reduction or increase in the aggregate principal amount of Notes represented by the
other Global Note. Any beneficial interest in one of the Global Notes that is transferred to a
person who takes delivery in the form of an interest in another Global Note will, upon transfer,
cease to be an interest in such Global Note and become an interest in such other Global Note and,
accordingly, will thereafter be subject to all transfer restrictions, if any, and other procedures
or conditions applicable to beneficial interests in such other Global Note for as long as it
remains such an interest.

     (c) The Holder of a Global Note may grant proxies and otherwise authorize any person,
including Participants and persons that may hold interests through Participants, to take any action
which a Holder is entitled to take under this Indenture or the Notes.

     SECTION 2.7 Special Transfer Provisions. Unless and until a Note is exchanged for an
Exchange Note or sold in connection with an effective Registration Statement pursuant to the
Registration Rights Agreement, the following provisions shall apply:

     (a) Transfers to QIBs. The following provisions shall apply with respect to any
proposed transfer of a Note to a QIB (excluding Non-U.S. Persons):

     (i) If the Note to be transferred is (A) either a Rule 144A Definitive Registered
Security or Regulation S Definitive Registered Security prior to the removal of the Private
Placement Legend, the transferor must advise the Company and the Trustee in writing that
such transfer is being made to a person whom the transferor reasonably believes is a QIB
within the meaning of Rule 144A in a transaction meeting the requirement of Rule 144A or (B)
an interest in a Rule 144A Global Note, the transfer of such interest may be effected only
through the book-entry system maintained by DTC.

     (ii) If the proposed transferee is a Participant and the Note to be transferred
consists of Rule 144A Definitive Registered Securities, upon receipt by the Trustee of the
documents referred to in paragraph (i) above and instructions given in accordance with the
procedures of DTC and the Book-Entry Depositary, the Book-Entry Depositary shall reflect on
its books and records the date and an increase in the principal amount of Rule 144A Global
Notes in an amount equal to the principal amount of the Rule 144A Definitive Registered
Securities to be transferred, and the Trustee shall cancel the Rule 144A Definitive
Registered Securities so transferred.

     (b) Transfers of Interests in the Regulation S Global Notes or Regulation S Definitive
Registered Securities. The following provisions shall apply with respect to any transfer of
interests in Regulation S Global Notes or Regulation S Definitive Registered Securities:

     (i) prior to the removal of the Private Placement Legend from the Regulation S Global
Notes or Regulation S Definitive Registered Securities pursuant to Section 2.2,

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     (A) if such transfer is made to Non-U.S. Person, such transfer must comply with
paragraph (c) of this Section 2.7, and

     (B) if such transfer is made to QIBs, the transferor must advise the Company
and the Trustee in writing that such transfer is being made to a person whom the
transferor reasonably believes is a QIB within the meaning of Rule 144A in a
transaction meeting the requirement of Rule 144A and, if such transfer involves an
interest in a Rule 144A Global Note, the transfer of such interest may be effected
only through the book-entry system maintained by DTC, and

     (ii) after such removal of the Private Placement Legend, transfers of any such Note may
be made without provision of any additional certification.

     (c) Transfers to Non-U.S. Persons at Any Time. The following provisions shall apply
with respect to any transfer of a Note to a Non-U.S. Person:

     (i) any proposed transfer to any Non-U.S. Person of a Rule 144A Definitive Registered
Security or an interest in a Rule 144A Global Note may be made upon receipt by the Trustee
of a certificate substantially in the form of Exhibit E hereto from the proposed transferor.

     (ii) (a) If the proposed transferor is a Participant holding a beneficial interest in a
Rule 144A Global Note, upon receipt by the Trustee of (A) the documents, if any, required by
paragraph (i) and (B) instructions in accordance with the procedures of DTC and the
Book-Entry Depositary, the Book-Entry Depositary shall reflect on its books and records the
date and a decrease in the principal amount of the Rule 144A Global Notes in an amount equal
to the principal amount of the beneficial interest in the Rule 144A Global Notes to be
transferred, and (b) if the proposed transferee is a Participant, upon receipt by the
Book-Entry Depositary of instructions given in accordance with the procedures of DTC and the
Book-Entry Depositary, the Book-Entry Depositary shall reflect on its books and records the
date and an increase in the principal amount of the Regulation S Global Notes in an amount
equal to the principal amount of the Rule 144A Definitive Registered Security or the Rule
144A Global Notes, as the case may be, to be transferred, and the Trustee shall cancel the
Definitive Registered Security, if any, so transferred or decrease the amount of the Rule
144A Global Notes.

     (d) Transfers between Unrestricted Global Notes. The following restrictions shall
apply with respect to transfers between Unrestricted Global Notes:

     (i) If the proposed transferor is a Participant holding a beneficial interest in an
Unrestricted Global Note, upon receipt by the Trustee of instructions in accordance with
the procedures of DTC and the Book-Entry Depositary, the Book-Entry Depositary shall reflect
on its books and records the date and a decrease in the principal amount of the Unrestricted
Global Note in which such transferor has a beneficial interest in an amount equal to the
principal amount of the beneficial interest in such Unrestricted Global Note to be
transferred, and (ii) if the proposed transferee is a Participant, upon receipt by the
Book-Entry Depositary of instructions given in accordance with the procedures of DTC and the
Book-Entry Depositary, the Book-Entry Depositary shall reflect on its books and records the
date and an increase in the

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principal amount of the Unrestricted Global Note in which the transferee holds a
beneficial interest in an amount equal to the principal amount of the beneficial interest in
the other Unrestricted Global Note to be transferred, and the Trustee shall decrease the
amount of the Unrestricted Global Note in which the transferor had a beneficial interest.

     (e) Private Placement Legend. Upon the transfer, exchange or replacement of Notes not
bearing the Private Placement Legend, the Trustee shall deliver Notes that do not bear the Private
Placement Legend. Upon the transfer, exchange or replacement of Notes bearing the Private Placement
Legend, the Trustee shall deliver only Notes that bear the Private Placement Legend unless (i) the
Private Placement Legend is no longer required by Section 2.2, or (ii) if the time period referred
to in Rule 144(k) has expired and there is delivered to the Trustee an Opinion of Counsel
reasonably satisfactory to the Company and the Trustee to the effect that neither such legend nor
the related restrictions on transfer are required in order to maintain compliance with the
provisions of the Securities Act.

     (f) General. By its acceptance of any Note bearing the Private Placement Legend, each
Holder of such Note acknowledges the restrictions on transfer of such Note set forth in this
Indenture and in the Private Placement Legend and agrees that it will transfer such Note only as
provided in this Indenture. In connection with any transfer of Notes, each Holder agrees by its
acceptance of the Notes to furnish the Trustee, the Book-Entry Depositary or the Company such
certifications, legal opinions or other information as either of them may reasonably require to
confirm that such transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act; provided that the Trustee shall
not be required to determine (but may conclusively rely on a determination made by the Company with
respect to) the sufficiency of any such certifications, legal opinions or other information.

     The Trustee shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.6 or this Section 2.7 in accordance with its customary record
retention procedures. The Company shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time upon the giving of
reasonable written notice to the Trustee.

ARTICLE III

MISCELLANEOUS

     SECTION 3.1 Execution as Supplemental Indenture. This Supplemental Indenture is
executed and shall be construed as an indenture supplemental to the Indenture and, as provided in
the Indenture, this Supplemental Indenture shall form a part of the Indenture. This Supplemental
Indenture, however, establishes the form and terms of the Notes only and shall not be construed to
have any effect on Debt Securities of any other series issued under the Indenture, or to have any
effect on the Indenture as it relates to Debt Securities of any other series, in each case except
as explicitly provided herein. All terms of the Indenture, as supplemented and amended by this
Supplemental Indenture or otherwise, apply to the Notes issued hereunder.

     SECTION 4.2 Governing Law. This Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York.

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     SECTION 4.3 Conflicts. In the event of a conflict between the terms and conditions of
the Indenture and the terms and conditions of this Supplemental Indenture, the terms and conditions
of this Supplemental Indenture shall prevail.

     SECTION 4.4 Counterparts. This Supplemental Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.

     SECTION 4.5 Headings. The descriptive headings of the several Articles of this
Supplemental Indenture were formulated, used and inserted in this Supplemental Indenture for
convenience only and shall not be deemed to affect the construction of any of the provisions
hereof.

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     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the day and year first above written.

	 	 	 	 	 
	 	HSBC HOLDINGS PLC

as Issuer

 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	The Bank of New York

as Trustee

 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	HSBC Bank USA, National Association

as Paying Agent

 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	HSBC Bank USA, National Association

as Registrar

 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	HSBC Bank USA, National Association

as Book-Entry Depositary

 	 
	 	By	/s/	 
	 	 	 	 
	 	Attest: 	 
	 

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EXHIBIT A

[APPLICABLE LEGENDS]

FORM OF RULE 144A GLOBAL NOTE

HSBC Holdings plc

U.S.$222,042,000

7.35% SUBORDINATED NOTES

DUE NOVEMBER 27, 2032

	CUSIP Number:	404280AC3
	ISIN:	US404280AC35
	Common Code:	020657642

     This is a Global Note in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer”, which term includes any successor Person under the 7.35% Indenture hereinafter
referred to) of debt securities, designated as specified in the title hereof, in the aggregate face
amount of up to U.S.$222,042,000.

     The Issuer, for value received, hereby promises to pay the Holder of this Global Note on
November 27, 2032 or on such earlier date as this Global Note may be redeemed (“Maturity”),
the principal amount hereof and to pay interest on the said principal amount from November 27, 2004
or the most recent Interest Payment Date on which interest has been paid or duly provided for,
semi-annually in arrears on May 27 and November 27 in each year (each such date, an “Interest
Payment Date”), commencing May 27, 2005, at the rate of 7.35% per annum, until the principal
amount hereof is paid or made available for payment; provided that, if, in
accordance with the terms of the Registration Rights Agreement, neither an Exchange Offer
Registration Statement nor a Shelf Registration Statement is filed with the Commission before
December 3, 2005,or neither an Registered Exchange Offer is consummated nor the Shelf Registration
Statement is declared effective by the Commission before December 23, 2005, the annual interest
rate borne by the Notes shall be increased by 0.5% from the rate shown on the face of the Notes
from and including the date on which any such registration default shall occur to but excluding the
date on which all registration defaults have been cured; provided further
that, if the Issuer does not pay any installment of interest on the pertinent Interest
Payment Date or all or any part of principal at Maturity, the obligation to make such payment and
such Interest Payment Date or Maturity, as the case may be, shall be deferred until (i) in the case
of a payment of interest, the date upon which a dividend is paid on any class of share capital of
the Issuer and (ii) in the case of a payment of principal, the first Business Day after the date
that falls six months after the original Maturity. Failure by the Issuer to make any such payment
prior to such deferred Interest Payment Date or Maturity shall not constitute a default by the
Issuer or otherwise allow any Holder to sue the Issuer for such payment or to take any other
action. Each payment so deferred will accrue interest at the rate of 7.35% per annum. Any payment
so deferred 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 Interest Payment
Date or Maturity as the case may be.

 

 

     Payment of interest, if any, in respect of this Global Note may be made by check, or by wire
transfer or transfer by any other means to an account designated in writing by the Holder of this
Global Note to the Paying Agent.

     All amounts of principal of and interest and related deferred payments on this Global Note
will be paid by the Issuer, without deduction or withholding for, or on account of, any and all
present and future 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 any taxing 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 law by the Taxing Jurisdiction, the Issuer will pay
such additional amounts (“Additional Amounts”) as may be necessary in order that the net
amounts paid to the Holder of this Global Note, after such deduction or withholding, shall equal
the respective amounts of principal and interest, which would have been payable in respect of this
Global Note had no such deduction or withholding been required; provided 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 of or the owner of a beneficial
interest in this Global Note is a domiciliary, national or resident of, or engaging in business or
maintaining a permanent establishment or physically present in the United Kingdom or any political
subdivision thereof or therein or otherwise has some connection or former connection with the
United Kingdom or any political subdivision thereof or therein other than the holding or ownership
of the Global Note, or the collection of any payment of (or in respect of) principal of and
interest and related deferred payments on or the enforcement of, any Global Note, (ii) the Global
Note or other means of payment of interest or related deferred payment in respect of this Global
Note is presented for payment in the United Kingdom, (iii) the Global Note or other means of
payment of interest or related deferred payment in respect of this Global Note is presented 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 the same for payment at the close of such 30 day period, (iv) such tax, levy, impost,
duty, charge, fee, deduction or withholding is imposed on any interest or related deferred payment
to an individual and is required to be made pursuant to European Council Directive 2003/48/EC or
any other directive implementing the conclusions of the ECOFIN Council meeting of 26-27 November
2000 on the taxation of saving income, or any law implementing or complying with, or introduced in
order to conform to, such Directive, (v) presentation for payment of this Global Note was made to a
paying agent who was required to make (or pass through) such deduction or withholding and
presentation for payment could have been made to a paying agent who was not required to make (or
pass through) such deduction or withholding, (vi) there was a failure to comply by the Holder or
the beneficial owner of this Global Note or the beneficial owner of any payment on this Global Note
with a request of the Issuer addressed to the Holder or the beneficial owner, including a request
of the Issuer related to a claim for relief under any applicable double tax treaty (x) to provide
information concerning the nationality, residence, identity or connection with a taxing
jurisdiction of the Holder or the beneficial owner or (y) to make any declaration or other similar
claim to satisfy any information or reporting requirement, if the information or declaration is
required or imposed by a statute, treaty, regulation, ruling or administrative practice of the
Taxing Jurisdiction as a precondition to exemption from withholding or deduction of all or part of
the tax, duty, assessment or other governmental charge, (vii) such tax, levy, impost, duty, charge,
fee,

2

 

deduction or withholding is imposed in respect of any estate, inheritance, gift, sale,
transfer, personal property, wealth or similar tax, duty, assessment or other governmental charge
or (viii) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed in respect
of any combination of the above items.

     Whenever in this Global Note there is mentioned, in any context, the payment of any principal
of or interest on this Global Note, such mention shall be deemed to include mention of the payment
of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof and express mention of the payment of Additional Amounts (if applicable)
in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made.

     Upon any exchange of a part of this Global Note for Definitive Registered Securities, the
portion of the principal amount hereof so exchanged shall be endorsed by the Book-Entry Depositary
on the Schedule hereto. The principal amount hereof shall be reduced for all purposes by the
amount so exchanged.

     Reference is hereby made to the further provisions of this Global Note set forth on the
reverse hereof, which further provisions shall for the purposes hereof have the same effect as if
set forth at this place.

     Unless the certificate of authentication hereon has been executed by the Trustee or an
authenticating agent by manual signature, this Global Note shall be not be entitled to any benefit
under the Indenture or be valid or obligatory for any purposes.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	HSBC Holdings plc

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Dated: December 3, 2004

3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

               This is one of the Debt Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York

    as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 

4

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

REVERSE OF RULE 144A GLOBAL NOTE

U.S.$222,042,000

7.35% SUBORDINATED NOTES

DUE November 27, 2032

     This Global Note is one of a duly authorized issue of debt securities (“Debt
Securities”) issued and to be issued in one or more series under and governed by an Indenture
dated as of December 10, 2002, between the Issuer and The Bank of New York, as trustee (the
“Trustee”, which term includes any successor trustee under the Indenture), (the “Base
Indenture”), as supplemented by a Supplemental Indenture dated as of December 3, 2004, between
the Issuer and the Trustee, (the “Supplemental Indenture”; and together with the Base
Indenture, the “Indenture”) to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Issuer, the Trustee, the Holders of the Debt Securities and of the
terms upon which the Debt Securities are, and are to be, authenticated and delivered.

     The rights of Holders of the Debt Securities will, in the event of the winding up of the
Issuer, to the extent more fully set out in the Indenture, be subordinated and subject in right of
payment to the prior payment in full of all claims of creditors of the Issuer except creditors in
respect of any liability of the Issuer however arising for the payment of money, the right to
payment of which by the Issuer by the terms thereof is, or is expressed to be, subordinated in the
event of a winding up of the Issuer to the claims of all or any of the creditors of the Issuer, and
creditors in respect of debt securities with no maturity issued pursuant to a separate indenture
between the Issuer and a trustee.

     Under the terms of the Indenture, the Debt Securities of any series (i) are redeemable, as a
whole but not in part, at the option of the Issuer, 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, if any, in respect of such Debt Securities to the date fixed for
redemption, if, at any time, the Issuer shall determine that (a) in making payment under such Debt
Securities in respect of principal or interest or related deferred payment it has or will or would
become obligated to pay Additional Amounts, provided such obligation to pay Additional Amounts
results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the
official application or interpretation of such laws (including a decision of any court or
tribunal), or any change in, or in the official application or interpretation of, or execution of,
or amendment to, any treaty or treaties affecting taxation to which the United Kingdom is a party,
which change, amendment or execution becomes effective on or after the original issuance of such
Debt Securities or (b) the payment of interest in respect of such Debt Securities has become or
will or would be treated as a “distribution” within the meaning of Section 209 of the Income and
Corporation Taxes Act 1988 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being), as a result of any change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws including a
decision of any court, which change or amendment becomes effective on or after the original
issuance of such Debt Securities of such series; provided, however, that in the case of (a) above,
no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the
Issuer would be obliged to pay Additional Amounts were a payment in respect of such Debt Securities
then due.

5

 

     If an Event of Default with respect to the Debt Securities of this series shall occur and be
continuing, the principal of all of the Debt Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. The Indenture provides that
in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such
series. If a Default with respect to Debt Securities of this series occurs and is continuing, the
Trustee may pursue certain remedies as set forth in the Indenture. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Debt Securities of this series may waive
any past event of default or any past default under the Indenture or the Debt Securities of this
series except a default in the payment of principal of on or any installment of interest or related
deferred payment on any of the Debt Securities of such series or in respect to a covenant or
provision which under the Indenture cannot be modified or amended without the consent of the Holder
of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt
Security and of any Debt Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt
Security or such other Debt Securities.

     The Indenture contains provisions permitting the Issuer and the Trustee (i) without the
consent of the Holders of any Debt Securities issued under the Indenture to execute one or more
supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure
the Debt Securities, and (ii) with the consent of the holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities
affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any
manner the rights of holders of Debt Securities under the Indenture; provided, that, with respect
to certain enumerated provisions, no such supplemental indenture may be entered into without the
consent of the holder of each Outstanding Debt Security affected thereby. The Indenture also
permits the holders of at least a majority in aggregate principal amount of the Outstanding Debt
Securities of each series to be affected, on behalf of the Holders of all Debt Securities of such
series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture.
Any such consent or waiver by the Holder of this Global Note shall bind every future Holder of this
Global Note and of any Global Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Global Note or such other Global Securities.

     The Depositary may surrender this Global Note or any portion hereof in exchange, in whole or
in part, for definitive Debt Securities, of this series in registered form and the Registrar,
acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Note or
the portions thereof to be exchanged, an equal aggregate face amount of definitive Debt Securities
(duly countersigned) in the numbers and in the names advised by the Depositary.

     The Indenture and the Debt Securities may be amended and modified as provided in the
Indenture.

     All terms used in this Debt Security and not otherwise defined shall have the meanings
ascribed to them in the Indenture.

6

 

     The Indenture and the Debt Securities and the rights and duties of the Trustee shall be
governed by and construed in accordance with the law of the State of New York, except that matters
relating to the subordination provisions contained in Article Twelve of the Base Indenture and in
the Debt Securities and the authorization and execution by the Issuer of the Indenture and the Debt
Securities shall be governed by English law.

7

 

SCHEDULE OF PRINCIPAL AMOUNT OF INDEBTEDNESS

EVIDENCED BY THIS NOTE

     The initial principal amount of indebtedness evidenced by this Note shall be $_______. The following decreases/increases in the principal amount evidenced by this Note
have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Principal	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of this	 	 	Notation Made	 
	 	 	Decrease in	 	 	Increase in	 	 	Global Note	 	 	by or on	 
	 	 	Principal Amount of	 	 	Principal Amount of	 	 	Following such	 	 	Behalf of	 
	Date of Decrease/Increase	 	this Global Note	 	 	this Global Note	 	 	Decrease/Increase	 	 	Trustee	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

8

 

EXHIBIT B

[APPLICABLE LEGENDS]

FORM OF REGULATION S GLOBAL NOTE

HSBC Holdings plc

U.S.$222,042,000

7.35% SUBORDINATED NOTES

DUE NOVEMBER 27, 2032

	CUSIP Number:	G4634UAU6
	ISIN:	USG4634UAU63
	Common Code:	020657685

     This is a Global Note in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer”, which term includes any successor Person under the 7.35% Indenture hereinafter
referred to) of debt securities, designated as specified in the title hereof, in the aggregate face
amount of up to U.S.$222,042,000.

     The Issuer, for value received, hereby promises to pay the Holder of this Global Note on
November 27, 2032 or on such earlier date as this Global Note may be redeemed (“Maturity”),
the principal amount hereof and to pay interest on the said principal amount from November 27, 2004
or the most recent Interest Payment Date on which interest has been paid or duly provided for,
semi-annually in arrears on May 27 and November 27 in each year (each such date, an “Interest
Payment Date”), commencing May 27, 2005, at the rate of 7.35% per annum, until the principal
amount hereof is paid or made available for payment; provided that, if, in
accordance with the terms of the Registration Rights Agreement, neither an Exchange Offer
Registration Statement nor a Shelf Registration Statement is filed with the Commission before
December 3, 2005, or neither an Registered Exchange Offer is consummated nor the Shelf Registration
Statement is declared effective by the Commission before December 23, 2005, the annual interest
rate borne by the Notes shall be increased by 0.5% from the rate shown on the face of the Notes
from and including the date on which any such registration default shall occur to but excluding the
date on which all registration defaults have been cured; provided further
that, if the Issuer does not pay any installment of interest on the pertinent Interest
Payment Date or all or any part of principal at Maturity, the obligation to make such payment and
such Interest Payment Date or Maturity, as the case may be, shall be deferred until (i) in the case
of a payment of interest, the date upon which a dividend is paid on any class of share capital of
the Issuer and (ii) in the case of a payment of principal, the first Business Day after the date
that falls six months after the original Maturity. Failure by the Issuer to make any such payment
prior to such deferred Interest Payment Date or Maturity shall not constitute a default by the
Issuer or otherwise allow any Holder to sue the Issuer for such payment or to take any other
action. Each payment so deferred will accrue interest at the rate of 7.35% per annum. Any payment
so deferred 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 Interest Payment
Date or Maturity as the case may be.

 

 

     Payment of interest in respect of this Global Note may be made by check, or by wire transfer
or transfer by any other means to an account designated in writing by the Holder of this Global
Note to the Paying Agent.

     All amounts of principal of and interest and related deferred payments on this Global Note
will be paid by the Issuer, without deduction or withholding for, or on account of, any and all
present and future 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 any taxing 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 law by the Taxing Jurisdiction, the Issuer will pay
such additional amounts (“Additional Amounts”) as may be necessary in order that the net
amounts paid to the Holder of this Global Note, after such deduction or withholding, shall equal
the respective amounts of principal and interest, which would have been payable in respect of this
Global Note had no such deduction or withholding been required; provided 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 of or the owner of a beneficial
interest in this Global Note is a domiciliary, national or resident of, or engaging in business or
maintaining a permanent establishment or physically present in the United Kingdom or any political
subdivision thereof or therein or otherwise has some connection or former connection with the
United Kingdom or any political subdivision thereof or therein other than the holding or ownership
of the Global Note, or the collection of any payment of (or in respect of) principal of and
interest and related deferred payments on or the enforcement of, any Global Note, (ii) the Global
Note or other means of payment of interest or related deferred payment in respect of this Global
Note is presented for payment in the United Kingdom, (iii) the Global Note or other means of
payment of interest or related deferred payment in respect of this Global Note is presented 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 the same for payment at the close of such 30 day period, (iv) such tax, levy, impost,
duty, charge, fee, deduction or withholding is imposed on any interest or related deferred payment
to an individual and is required to be made pursuant to European Council Directive 2003/48/EC or
any other directive implementing the conclusions of the ECOFIN Council meeting of 26-27 November
2000 on the taxation of saving income, or any law implementing or complying with, or introduced in
order to conform to, such Directive, (v) presentation for payment of this Global Note was made to a
paying agent who was required to make (or pass through) such deduction or withholding and
presentation for payment could have been made to a paying agent who was not required to make (or
pass through) such deduction or withholding, (vi) there was a failure to comply by the Holder or
the beneficial owner of this Global Note or the beneficial owner of any payment on this Global Note
with a request of the Issuer addressed to the Holder or the beneficial owner, including a request
of the Issuer related to a claim for relief under any applicable double tax treaty (x) to provide
information concerning the nationality, residence, identity or connection with a taxing
jurisdiction of the Holder or the beneficial owner or (y) to make any declaration or other similar
claim to satisfy any information or reporting requirement, if the information or declaration is
required or imposed by a statute, treaty, regulation, ruling or administrative practice of the
Taxing Jurisdiction as a precondition to exemption from withholding or deduction of all or part of
the tax, duty, assessment or other governmental charge, (vii) such tax, levy, impost, duty, charge,
fee,

2

 

deduction or withholding is imposed in respect of any estate, inheritance, gift, sale,
transfer, personal property, wealth or similar tax, duty, assessment or other governmental charge
or (viii) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed in respect
of any combination of the above items.

     Whenever in this Global Note there is mentioned, in any context, the payment of any principal
of or interest on this Global Note, such mention shall be deemed to include mention of the payment
of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof and express mention of the payment of Additional Amounts (if applicable)
in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made.

     Upon any exchange of a part of this Global Note for Definitive Registered Securities, the
portion of the principal amount hereof so exchanged shall be endorsed by the Book-Entry Depositary
on the Schedule hereto. The principal amount hereof shall be reduced for all purposes by the
amount so exchanged.

     Reference is hereby made to the further provisions of this Global Note set forth on the
reverse hereof, which further provisions shall for the purposes hereof have the same effect as if
set forth at this place.

     Unless the certificate of authentication hereon has been executed by the Trustee or an
authenticating agent by manual signature, this Global Note shall be not be entitled to any benefit
under the Indenture or be valid or obligatory for any purposes.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	HSBC Holdings plc

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Dated: December 3, 2004

3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Debt Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

4

 

	 	 	 	 	 

REVERSE OF REGULATION S GLOBAL NOTE

U.S.$222,042,000

7.35% SUBORDINATED NOTES

DUE NOVEMBER 27, 2032

     This Global Note is one of a duly authorized issue of debt securities (“Debt
Securities”) issued and to be issued in one or more series under and governed by an Indenture
dated as of December 10, 2002, between the Issuer and The Bank of New York, as trustee (the
“Trustee”, which term includes any successor trustee under the Indenture), (the “Base
Indenture”), as supplemented by a Supplemental Indenture dated as of December 3, 2004, between
the Issuer and the Trustee, (the “Supplemental Indenture”; and together with the Base
Indenture, the “Indenture”) to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Issuer, the Trustee, the Holders of the Debt Securities and of the
terms upon which the Debt Securities are, and are to be, authenticated and delivered.

     The rights of Holders of the Debt Securities will, in the event of the winding up of the
Issuer, to the extent more fully set out in the Indenture, be subordinated and subject in right of
payment to the prior payment in full of all claims of creditors of the Issuer except creditors in
respect of any liability of the Issuer however arising for the payment of money, the right to
payment of which by the Issuer by the terms thereof is, or is expressed to be, subordinated in the
event of a winding up of the Issuer to the claims of all or any of the creditors of the Issuer, and
creditors in respect of debt securities with no maturity issued pursuant to a separate indenture
between the Issuer and a trustee.

     Under the terms of the Indenture, the Debt Securities of any series (i) are redeemable, as a
whole but not in part, at the option of the Issuer, 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, if any, in respect of such Debt Securities to the date fixed for
redemption, if, at any time, the Issuer shall determine that (a) in making payment under such Debt
Securities in respect of principal or interest or related deferred payment it has or will or would
become obligated to pay Additional Amounts, provided such obligation to pay Additional Amounts
results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the
official application or interpretation of such laws (including a decision of any court or
tribunal), or any change in, or in the official application or interpretation of, or execution of,
or amendment to, any treaty or treaties affecting taxation to which the United Kingdom is a party,
which change, amendment or execution becomes effective on or after the original issuance of such
Debt Securities or (b) the payment of interest in respect of such Debt Securities has become or
will or would be treated as a “distribution” within the meaning of Section 209 of the Income and
Corporation Taxes Act 1988 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being), as a result of any change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws including a
decision of any court, which change or amendment becomes effective on or after the original
issuance of such Debt Securities of such series; provided, however, that in the case of (a) above,
no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the
Issuer would be obliged to pay Additional Amounts were a payment in respect of such Debt Securities
then due.

5

 

     If an Event of Default with respect to the Debt Securities of this series shall occur and be
continuing, the principal of all of the Debt Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. The Indenture provides that
in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such
series. If a Default with respect to Debt Securities of this series occurs and is continuing, the
Trustee may pursue certain remedies as set forth in the Indenture. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Debt Securities of this series may waive
any past event of default or any past default under the Indenture or the Debt Securities of this
series except a default in the payment of principal of on or any installment of interest or related
deferred payment on any of the Debt Securities of such series or in respect to a covenant or
provision which under the Indenture cannot be modified or amended without the consent of the Holder
of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt
Security and of any Debt Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt
Security or such other Debt Securities.

     The Indenture contains provisions permitting the Issuer and the Trustee (i) without the
consent of the Holders of any Debt Securities issued under the Indenture to execute one or more
supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure
the Debt Securities, and (ii) with the consent of the holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities
affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any
manner the rights of holders of Debt Securities under the Indenture; provided, that, with respect
to certain enumerated provisions, no such supplemental indenture may be entered into without the
consent of the holder of each Outstanding Debt Security affected thereby. The Indenture also
permits the holders of at least a majority in aggregate principal amount of the Outstanding Debt
Securities of each series to be affected, on behalf of the Holders of all Debt Securities of such
series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture.
Any such consent or waiver by the Holder of this Global Note shall bind every future Holder of this
Global Note and of any Global Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Global Note or such other Global Securities.

     The Depositary may surrender this Global Note or any portion hereof in exchange, in whole or
in part, for definitive Debt Securities, of this series in registered form and the Registrar,
acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Note or
the portions thereof to be exchanged, an equal aggregate face amount of definitive Debt Securities
(duly countersigned) in the numbers and in the names advised by the Depositary.

     The Indenture and the Debt Securities may be amended and modified as provided in the
Indenture.

     All terms used in this Debt Security and not otherwise defined shall have the meanings
ascribed to them in the Indenture.

6

 

     The Indenture and the Debt Securities and the rights and duties of the Trustee shall be
governed by and construed in accordance with the law of the State of New York, except that matters
relating to the subordination provisions contained in Article Twelve of the Base Indenture and in
the Debt Securities and the authorization and execution by the Issuer of the Indenture and the Debt
Securities shall be governed by English law.

7

 

SCHEDULE OF PRINCIPAL AMOUNT OF INDEBTEDNESS

EVIDENCED BY THIS NOTE

     The initial principal amount of indebtedness evidenced by this Note shall be $_______. The following decreases/increases in the principal amount evidenced by this Note
have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Principal	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of this	 	 	Notation Made	 
	 	 	Decrease in	 	 	Increase in	 	 	Global Note	 	 	by or on	 
	 	 	Principal Amount of	 	 	Principal Amount of	 	 	Following such	 	 	Behalf of	 
	Date of Decrease/Increase	 	this Global Note	 	 	this Global Note	 	 	Decrease/Increase	 	 	Trustee	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

8

 

EXHIBIT C

FORM OF DEFINITIVE REGISTERED SECURITY

HSBC Holdings plc

U.S.$222,042,000

7.35% SUBORDINATED NOTES

DUE NOVEMBER 27, 2032

No.___

U.S. $______

Common Code: •

ISIN: •

Issue Date:

Issue Price (for each U.S. $1,000 principal amount): U.S.$1,000

     This is a Definitive Registered Security in respect of a duly authorized issue by HSBC
Holdings plc (the “Issuer”, which term includes any successor Person under the 7.35%
Indenture hereinafter referred to) of debt securities, designated as specified in the title hereof,
in the principal sum of U.S.$______.

     The Issuer, for value received, hereby promises to pay ______, or its registered
assigns, on November 27, 2032 or on such earlier date as this Definitive Registered Security may be
redeemed (“Maturity”), the principal amount hereof and interest on the said principal
amount from November 27, 2004 or the most recent Interest Payment Date on which interest has been
paid or duly provided for, semi-annually in arrears on May 27 and November 27 in each year (each
such date, an “Interest Payment Date”), commencing May 27, 2005, at the rate of 7.35% per
annum, until the principal amount hereof is paid or made available for payment; provided
that, if, in accordance with the terms of the Registration Rights Agreement, neither an
Exchange Offer Registration Statement nor a Shelf Registration Statement is filed with the
Commission before December 3, 2005, or neither an Registered Exchange Offer is consummated nor the
Shelf Registration Statement is declared effective by the Commission before December 23, 2005, the
annual interest rate borne by the Notes shall be increased by 0.5% from the rate shown on the face
of the Notes from and including the date on which any such registration default shall occur to but
excluding the date on which all registration defaults have been cured; provided
further that, if the Issuer does not pay any installment of interest on the
pertinent Interest Payment Date or all or any part of principal at Maturity, the obligation to make
such payment and such Interest Payment Date or Maturity, as the case may be, shall be deferred
until (i) in the case of a payment of interest, the date upon which a dividend is paid on any class
of share capital of the Issuer and (ii) in the case of a payment of principal, the first Business
Day after the date that falls six months after the original Maturity. Failure by the Issuer to
make any such payment prior to such deferred Interest Payment Date or Maturity shall not constitute
a default by the Issuer or otherwise allow any Holder to sue the Issuer for such payment or to take
any other action. Each payment so deferred will accrue interest at the rate of 7.35% per annum.
Any payment so deferred 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 Interest
Payment Date or Maturity as the case may be.

     Interest in respect of this Definitive Registered Note that is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name this
Definitive Registered Note is registered (or to the Holders of one or more Predecessor Global
Notes) at the close of business on the immediately preceding May 12 and November 12 of the relevant
Interest Payment Date (the “Regular Record Date”) for such interest.

     Payment of interest, if any, in respect of this Definitive Registered Note may be made by
check mailed to the address of the Person entitled thereto as such address shall appear in the
Register (if applicable), or by wire transfer or transfer by any other means to an account
designated in writing by such Person to the Paying Agent at least 15 days prior to a relevant
payment date.

     Any interest in respect of this Definitive Registered Note of any series that is payable, but
is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the Holder hereof on the relevant Regular Record
Date by virtue of its having been such Holder; and such Defaulted Interest may be paid by the
Issuer, at its election in each case, as provided in Clause (1) or (2) below:

     (1) The Issuer may elect to make payment of such Defaulted Interest to the Person in whose
name such Definitive Registered Note is registered (or to the Holders of one or more Predecessor
Global Notes) at the close of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the manner provided for in the Indenture.

     (2) The Issuer may make payment of any Defaulted Interest on this Definitive Registered Note
in any other lawful manner not inconsistent with the requirements of any securities exchange on
which this Definitive Registered Note may be listed, and upon such notice as may be required by
such exchange, if, after notice given by the Issuer to the Trustee of the proposed payment pursuant
to this clause, such manner of payment shall be deemed practicable by the Trustee.

     All amounts of principal of and interest and related deferred payments on this Definitive
Registered Security will be paid by the Issuer, without deduction or withholding for, or on account
of, any and all present and future 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 any taxing 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 law by the Taxing Jurisdiction,
the Issuer will pay such additional amounts (“Additional Amounts”) as may be necessary in
order that the net amounts paid to the Holder of this Definitive Registered Security, after such
deduction or withholding, shall equal the respective amounts of principal and interest, which would
have been payable in respect of this Definitive Registered Security had no such deduction or
withholding been required; provided 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 of

2

 

or the owner of a beneficial interest in this Definitive Registered Security is a domiciliary,
national or resident of, or engaging in business or maintaining a permanent establishment or
physically present in the United Kingdom or any political subdivision thereof or therein or
otherwise has some connection or former connection with the United Kingdom or any political
subdivision thereof or therein other than the holding or ownership of the Definitive Registered
Security, or the collection of any payment of (or in respect of) principal of and interest and
related deferred payments on or the enforcement of, any Definitive Registered Security, (ii) the
Definitive Registered Security or other means of payment of interest or related deferred payment in
respect of this Definitive Registered Security is presented for payment in the United Kingdom,
(iii) the Definitive Registered Security or other means of payment of interest or related deferred
payment in respect of this Definitive Registered Security is presented 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 the same
for payment at the close of such 30 day period, (iv) such tax, levy, impost, duty, charge, fee,
deduction or withholding is imposed on any interest or related deferred payment to an individual
and is required to be made pursuant to European Council Directive 2003/48/EC or any other directive
implementing the conclusions of the ECOFIN Council meeting of 26-27 November 2000 on the taxation
of saving income, or any law implementing or complying with, or introduced in order to conform to,
such Directive, (v) presentation for payment of this Definitive Registered Security was made to a
paying agent who was required to make (or pass through) such deduction or withholding and
presentation for payment could have been made to a paying agent who was not required to make (or
pass through) such deduction or withholding, (vi) there was a failure to comply by the Holder or
the beneficial owner of this Global Note or the beneficial owner of any payment on this Global Note
with a request of the Issuer addressed to the Holder or the beneficial owner, including a request
of the Issuer related to a claim for relief under any applicable double tax treaty (x) to provide
information concerning the nationality, residence, identity or connection with a taxing
jurisdiction of the Holder or the beneficial owner or (y) to make any declaration or other similar
claim to satisfy any information or reporting requirement, if the information or declaration is
required or imposed by a statute, treaty, regulation, ruling or administrative practice of the
Taxing Jurisdiction as a precondition to exemption from withholding or deduction of all or part of
the tax, duty, assessment or other governmental charge, (vii) such tax, levy, impost, duty, charge,
fee, deduction or withholding is imposed in respect of any estate, inheritance, gift, sale,
transfer, personal property, wealth or similar tax, duty, assessment or other governmental charge
or (viii) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed in respect
of any combination of the above items.

     Whenever in this Definitive Registered Security there is mentioned, in any context, the
payment of any principal of or interest on this Definitive Registered Security, such mention shall
be deemed to include mention of the payment of Additional Amounts to the extent that, in such
context, Additional Amounts are, were or would be payable in respect thereof and express mention of
the payment of Additional Amounts (if applicable) in any provisions hereof shall not be construed
as excluding Additional Amounts in those provisions hereof where such express mention is not made.

     Reference is hereby made to the further provisions of this Definitive Registered Security set
forth on the reverse hereof, which further provisions shall for the purposes hereof have the same
effect as if set forth at this place.

3

 

     Unless the certificate of authentication hereon has been executed by the Trustee or an
authenticating agent by manual signature, this Definitive Registered Security shall be not be
entitled to any benefit under the Indenture or be valid or obligatory for any purposes.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	HSBC Holdings plc

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Dated:

4

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Debt Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

5

 

	 	 	 	 	 

REVERSE OF DEFINITIVE REGISTERED SECURITY

U.S.$222,042,000

7.35% SUBORDINATED NOTES

DUE NOVEMBER 27, 2032

     This Definitive Registered Security is one of a duly authorized issue of debt securities
(“Debt Securities”) issued and to be issued in one or more series under and governed by an
Indenture dated as of December 10, 2002, between the Issuer and The Bank of New York, as trustee
(the “Trustee”, which term includes any successor trustee under the Indenture), (the
“Base Indenture”), as supplemented by a Supplemental Indenture dated as of December 3,
2004, between the Issuer and the Trustee, (the “Supplemental Indenture”; and together with
the Base Indenture, the “Indenture”) to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Issuer, the Trustee, the Holders of the Debt Securities and
of the terms upon which the Debt Securities are, and are to be, authenticated and delivered.

     The rights of Holders of the Debt Securities will, in the event of the winding up of the
Issuer, to the extent more fully set out in the Indenture, be subordinated and subject in right of
payment to the prior payment in full of all claims of creditors of the Issuer except creditors in
respect of any liability of the Issuer however arising for the payment of money, the right to
payment of which by the Issuer by the terms thereof is, or is expressed to be, subordinated in the
event of a winding up of the Issuer to the claims of all or any of the creditors of the Issuer, and
creditors in respect of debt securities with no maturity issued pursuant to a separate indenture
between the Issuer and a trustee.

     Under the terms of the Indenture, the Debt Securities of any series (i) are redeemable, as a
whole but not in part, at the option of the Issuer, 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, if any, in respect of such Debt Securities to the date fixed for
redemption, if, at any time, the Issuer shall determine that (a) in making payment under such Debt
Securities in respect of principal or interest or related deferred payment it has or will or would
become obligated to pay Additional Amounts, provided such obligation to pay Additional Amounts
results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the
official application or interpretation of such laws (including a decision of any court or
tribunal), or any change in, or in the official application or interpretation of, or execution of,
or amendment to, any treaty or treaties affecting taxation to which the United Kingdom is a party,
which change, amendment or execution becomes effective on or after the original issuance of such
Debt Securities or (b) the payment of interest in respect of such Debt Securities has become or
will or would be treated as a “distribution” within the meaning of Section 209 of the Income and
Corporation Taxes Act 1988 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being), as a result of any change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws including a
decision of any court, which change or amendment becomes effective on or after the original
issuance of such Debt Securities of such series; provided, however, that in the case of (a) above,
no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the
Issuer would be obliged to pay Additional Amounts were a payment in respect of such Debt Securities
then due.

6

 

     If an Event of Default with respect to the Debt Securities of this series shall occur and be
continuing, the principal of all of the Debt Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. The Indenture provides that
in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such
series. If a Default with respect to Debt Securities of this series occurs and is continuing, the
Trustee may pursue certain remedies as set forth in the Indenture. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Debt Securities of this series may waive
any past event of default or any past default under the Indenture or the Debt Securities of this
series except a default in the payment of principal of on or any installment of interest or related
deferred payment on any of the Debt Securities of such series or in respect to a covenant or
provision which under the Indenture cannot be modified or amended without the consent of the Holder
of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt
Security and of any Debt Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt
Security or such other Debt Securities.

     The Indenture contains provisions permitting the Issuer and the Trustee (i) without the
consent of the Holders of any Debt Securities issued under the Indenture to execute one or more
supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure
the Debt Securities, and (ii) with the consent of the holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities
affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any
manner the rights of holders of Debt Securities under the Indenture; provided, that, with respect
to certain enumerated provisions, no such supplemental indenture may be entered into without the
consent of the holder of each Outstanding Debt Security affected thereby. The Indenture also
permits the holders of at least a majority in aggregate principal amount of the Outstanding Debt
Securities of each series to be affected, on behalf of the Holders of all Debt Securities of such
series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture.
Any such consent or waiver by the Holder of this Definitive Registered Security shall bind every
future Holder of this Definitive Registered Security and of any Definitive Registered Security
issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether
or not notation of such consent or waiver is made upon this Definitive Registered Security or such
other Global Securities.

     The Depositary may surrender this Definitive Registered Security or any portion hereof in
exchange, in whole or in part, for definitive Debt Securities, of this series in registered form
and the Registrar, acting on behalf of the Issuer, shall authenticate and deliver in exchange for
this Definitive Registered Security or the portions thereof to be exchanged, an equal aggregate
face amount of definitive Debt Securities (duly countersigned) in the numbers and in the names
advised by the Depositary.

     The Indenture and the Debt Securities may be amended and modified as provided in the
Indenture.

     All terms used in this Debt Security and not otherwise defined shall have the meanings
ascribed to them in the Indenture.

7

 

     The Indenture and the Debt Securities and the rights and duties of the Trustee shall be
governed by and construed in accordance with the law of the State of New York, except that matters
relating to the subordination provisions contained in Article Twelve of the Base Indenture and in
the Debt Securities and the authorization and execution by the Issuer of the Indenture and the Debt
Securities shall be governed by English law.

8

 

TRANSFER NOTICE

     FOR VALUE RECEIVED the undersigned registered Holder hereby sell(s), assign(s) and transfer(s)
unto

(Insert transferee’s social security or tax ID number)

 

 

 

(Print or type transferee’s name, address and zip code)

and irrevocably appoint

 

agent to transfer this Note on the books of the Company. The agent may substitute another to act
for him.

 

	 	 	 	 	 	 	 
	Date: 
	 	 

	 	Signature:	 	 

	 	 	 	 	(Sign exactly as your name appears on the other side of this Note)

	 	 	 
	Signature Guarantee:

	 	 

9

 

EXHIBIT D

FORM OF UNRESTRICTED GLOBAL NOTE

HSBC Holdings plc

U.S.$222,042,000

7.35% SUBORDINATED NOTES

DUE NOVEMBER 27, 2032

	CUSIP Number:	404280AE9
	ISIN:	US404280AE90

     This is a Global Note in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer”, which term includes any successor Person under the 7.35% Indenture hereinafter
referred to) of debt securities, designated as specified in the title hereof, in the aggregate face
amount of up to U.S.$222,042,000.

     The Issuer, for value received, hereby promises to pay the Holder of this Global Note on
November 27, 2032 or on such earlier date as this Global Note may be redeemed (“Maturity”),
the principal amount hereof and to pay interest on the said principal amount from November 27, 2004
or the most recent Interest Payment Date on which interest has been paid or duly provided for,
semi-annually in arrears on May 27 and November 27 in each year (each such date, an “Interest
Payment Date”), commencing May 27, 2005, at the rate of 7.35% per annum, until the principal
amount hereof is paid or made available for payment; provided that, if the Issuer
does not pay any installment of interest on the pertinent Interest Payment Date or all or any part
of principal at Maturity, the obligation to make such payment and such Interest Payment Date or
Maturity, as the case may be, shall be deferred until (i) in the case of a payment of interest, the
date upon which a dividend is paid on any class of share capital of the Issuer and (ii) in the case
of a payment of principal, the first Business Day after the date that falls six months after the
original Maturity. Failure by the Issuer to make any such payment prior to such deferred Interest
Payment Date or Maturity shall not constitute a default by the Issuer or otherwise allow any Holder
to sue the Issuer for such payment or to take any other action. Each payment so deferred will
accrue interest at the rate of 7.35% per annum. Any payment so deferred 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 Interest Payment Date or Maturity as the case may be.

     Payment of interest in respect of this Global Note may be made by check, or by wire transfer
or transfer by any other means to an account designated in writing by the Holder of this Global
Note to the Paying Agent.

     All amounts of principal of and interest and related deferred payments on this Global Note
will be paid by the Issuer, without deduction or withholding for, or on account of, any and all
present and future 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 any taxing 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 law

 

 

by the Taxing Jurisdiction, the Issuer will pay such additional amounts (“Additional
Amounts”) as may be necessary in order that the net amounts paid to the Holder of this Global
Note, after such deduction or withholding, shall equal the respective amounts of principal and
interest, which would have been payable in respect of this Global Note had no such deduction or
withholding been required; provided 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 of or the owner of a beneficial interest in this Global Note is a
domiciliary, national or resident of, or engaging in business or maintaining a permanent
establishment or physically present in the United Kingdom or any political subdivision thereof or
therein or otherwise has some connection or former connection with the United Kingdom or any
political subdivision thereof or therein other than the holding or ownership of the Global Note, or
the collection of any payment of (or in respect of) principal of and interest and related deferred
payments on or the enforcement of, any Global Note, (ii) the Global Note or other means of payment
of interest or related deferred payment in respect of this Global Note is presented for payment in
the United Kingdom, (iii) the Global Note or other means of payment of interest or related deferred
payment in respect of this Global Note is presented 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 the same for payment at the close
of such 30 day period, (iv) such tax, levy, impost, duty, charge, fee, deduction or withholding is
imposed on any interest or related deferred payment to an individual and is required to be made
pursuant to European Council Directive 2003/48/EC or any other directive implementing the
conclusions of the ECOFIN Council meeting of 26-27 November 2000 on the taxation of saving income,
or any law implementing or complying with, or introduced in order to conform to, such Directive,
(v) presentation for payment of this Global Note was made to a paying agent who was required to
make (or pass through) such deduction or withholding and presentation for payment could have been
made to a paying agent who was not required to make (or pass through) such deduction or
withholding, (vi) there was a failure to comply by the Holder or the beneficial owner of this
Global Note or the beneficial owner of any payment on this Global Note with a request of the Issuer
addressed to the Holder or the beneficial owner, including a request of the Issuer related to a
claim for relief under any applicable double tax treaty (x) to provide information concerning the
nationality, residence, identity or connection with a taxing jurisdiction of the Holder or the
beneficial owner or (y) to make any declaration or other similar claim to satisfy any information
or reporting requirement, if the information or declaration is required or imposed by a statute,
treaty, regulation, ruling or administrative practice of the Taxing Jurisdiction as a precondition
to exemption from withholding or deduction of all or part of the tax, duty, assessment or other
governmental charge, (vii) such tax, levy, impost, duty, charge, fee, deduction or withholding is
imposed in respect of any estate, inheritance, gift, sale, transfer, personal property, wealth or
similar tax, duty, assessment or other governmental charge or (viii) such tax, levy, impost, duty,
charge, fee, deduction or withholding is imposed in respect of any combination of the above items.

     Whenever in this Global Note there is mentioned, in any context, the payment of any principal
of or interest on this Global Note, such mention shall be deemed to include mention of the payment
of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof and express mention of the payment of Additional Amounts (if applicable)
in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made.

2

 

     Upon any exchange of a part of this Global Note for Definitive Registered Securities, the
portion of the principal amount hereof so exchanged shall be endorsed by the Book-Entry Depositary
on the Schedule hereto. The principal amount hereof shall be reduced for all purposes by the
amount so exchanged.

     Reference is hereby made to the further provisions of this Global Note set forth on the
reverse hereof, which further provisions shall for the purposes hereof have the same effect as if
set forth at this place.

     Unless the certificate of authentication hereon has been executed by the Trustee or an
authenticating agent by manual signature, this Global Note shall be not be entitled to any benefit
under the Indenture or be valid or obligatory for any purposes.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	HSBC Holdings plc

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Dated:

3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Debt Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York

   as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

4

 

	 	 	 	 	 

REVERSE OF UNRESTRICTED GLOBAL NOTE

U.S.$222,042,000

7.35% SUBORDINATED NOTES

DUE NOVEMBER 27, 2032

     This Global Note is one of a duly authorized issue of debt securities (“Debt
Securities”) issued and to be issued in one or more series under and governed by an Indenture
dated as of December 10, 2002, between the Issuer and The Bank of New York, as trustee (the
“Trustee”, which term includes any successor trustee under the Indenture), (the “Base
Indenture”), as supplemented by a Supplemental Indenture dated as of December 3, 2004, between
the Issuer and the Trustee, (the “Supplemental Indenture”; and together with the Base
Indenture, the “Indenture”) to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Issuer, the Trustee, the Holders of the Debt Securities and of the
terms upon which the Debt Securities are, and are to be, authenticated and delivered.

     The rights of Holders of the Debt Securities will, in the event of the winding up of the
Issuer, to the extent more fully set out in the Indenture, be subordinated and subject in right of
payment to the prior payment in full of all claims of creditors of the Issuer except creditors in
respect of any liability of the Issuer however arising for the payment of money, the right to
payment of which by the Issuer by the terms thereof is, or is expressed to be, subordinated in the
event of a winding up of the Issuer to the claims of all or any of the creditors of the Issuer, and
creditors in respect of debt securities with no maturity issued pursuant to a separate indenture
between the Issuer and a trustee.

     Under the terms of the Indenture, the Debt Securities of any series (i) are redeemable, as a
whole but not in part, at the option of the Issuer, 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, if any, in respect of such Debt Securities to the date fixed for
redemption, if, at any time, the Issuer shall determine that (a) in making payment under such Debt
Securities in respect of principal or interest or related deferred payment it has or will or would
become obligated to pay Additional Amounts, provided such obligation to pay Additional Amounts
results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the
official application or interpretation of such laws (including a decision of any court or
tribunal), or any change in, or in the official application or interpretation of, or execution of,
or amendment to, any treaty or treaties affecting taxation to which the United Kingdom is a party,
which change, amendment or execution becomes effective on or after the original issuance of such
Debt Securities or (b) the payment of interest in respect of such Debt Securities has become or
will or would be treated as a “distribution” within the meaning of Section 209 of the Income and
Corporation Taxes Act 1988 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being), as a result of any change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws including a
decision of any court, which change or amendment becomes effective on or after the original
issuance of such Debt Securities of such series; provided, however, that in the case of (a) above,
no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the
Issuer would be obliged to pay Additional Amounts were a payment in respect of such Debt Securities
then due.

5

 

     If an Event of Default with respect to the Debt Securities of this series shall occur and be
continuing, the principal of all of the Debt Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. The Indenture provides that
in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such
series. If a Default with respect to Debt Securities of this series occurs and is continuing, the
Trustee may pursue certain remedies as set forth in the Indenture. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Debt Securities of this series may waive
any past event of default or any past default under the Indenture or the Debt Securities of this
series except a default in the payment of principal of on or any installment of interest or related
deferred payment on any of the Debt Securities of such series or in respect to a covenant or
provision which under the Indenture cannot be modified or amended without the consent of the Holder
of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt
Security and of any Debt Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt
Security or such other Debt Securities.

     The Indenture contains provisions permitting the Issuer and the Trustee (i) without the
consent of the Holders of any Debt Securities issued under the Indenture to execute one or more
supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure
the Debt Securities, and (ii) with the consent of the holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities
affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any
manner the rights of holders of Debt Securities under the Indenture; provided, that, with respect
to certain enumerated provisions, no such supplemental indenture may be entered into without the
consent of the holder of each Outstanding Debt Security affected thereby. The Indenture also
permits the holders of at least a majority in aggregate principal amount of the Outstanding Debt
Securities of each series to be affected, on behalf of the Holders of all Debt Securities of such
series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture.
Any such consent or waiver by the Holder of this Global Note shall bind every future Holder of this
Global Note and of any Global Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Global Note or such other Global Securities.

     The Depositary may surrender this Global Note or any portion hereof in exchange, in whole or
in part, for definitive Debt Securities, of this series in registered form and the Registrar,
acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Note or
the portions thereof to be exchanged, an equal aggregate face amount of definitive Debt Securities
(duly countersigned) in the numbers and in the names advised by the Depositary.

     The Indenture and the Debt Securities may be amended and modified as provided in the
Indenture.

     All terms used in this Debt Security and not otherwise defined shall have the meanings
ascribed to them in the Indenture.

6

 

     The Indenture and the Debt Securities and the rights and duties of the Trustee shall be
governed by and construed in accordance with the law of the State of New York, except that matters
relating to the subordination provisions contained in Article Twelve of the Base Indenture and in
the Debt Securities and the authorization and execution by the Issuer of the Indenture and the Debt
Securities shall be governed by English law.

7

 

SCHEDULE OF PRINCIPAL AMOUNT OF INDEBTEDNESS

EVIDENCED BY THIS NOTE

The initial principal amount of indebtedness evidenced by this Note shall be $_______. The following decreases/increases in the principal amount evidenced by this Note
have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Principal	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of this	 	 	Notation Made	 
	 	 	Decrease in	 	 	Increase in	 	 	Global Note	 	 	by or on	 
	 	 	Principal Amount of	 	 	Principal Amount of	 	 	Following such	 	 	Behalf of	 
	Date of Decrease/Increase	 	this Global Note	 	 	this Global Note	 	 	Decrease/Increase	 	 	Trustee	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

8

 

EXHIBIT E

FORM OF CERTIFICATE TO BE DELIVERED IN

CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S

[The Bank of New York

101 Barclay Street

Floor 21 West

New York, New York 10286

Attention: Corporate Trust Administration]

Re: HSBC Holdings plc (the “Company”)

7.35 % Subordinated Notes due 2032 (the “Notes”)

Ladies and Gentlemen:

     In connection with our proposed sale of $______ principal amount of the Notes, we
confirm that such sale has been effected pursuant to and in accordance with Regulation S under the
U.S. Securities Act of 1933 and, accordingly, we represent that:

     (1) the offer of the Notes was not made to a person in the United States;

     (2) at the time the buy order was originated, the transferee was outside the United States or we
and any person acting on our behalf reasonably believed that the transferee was outside the United
States;

     (3) no directed selling efforts have been made by us in the United States in contravention of the
requirements of Rule 903 or Rule 904 of Regulation S, as applicable;

     (4) the transaction is not part of a plan or scheme to evade the registration requirements of the
U.S. Securities Act of 1933.

     You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferor]

 	 
	 	By  	 	 
	 	 	Authorized SignatureEX-4.3

 

Exhibit 4.3

HSBC HOLDINGS PLC

and

THE BANK OF NEW YORK

 

SUPPLEMENTAL INDENTURE

Dated as of December 3, 2004

 

7.625 % Subordinated Notes due 2032

 

 

     SUPPLEMENTAL INDENTURE, dated as of December 3, 2004 (the “Supplemental Indenture”),
between HSBC Holdings plc, a public limited company organized under the laws of England and Wales
(the “Company”) and The Bank of New York (the “Trustee”), as Trustee.

WHEREAS the Company and the Trustee have executed and delivered an Indenture dated as of December
10, 2002 (the “Indenture”);

WHEREAS Section 9.01 of the Indenture provides that the Company, without the consent of any Holders
of Debt Securities, when authorized by or pursuant to a Board Resolution, and the Trustee, at any
time and from time to time, may enter into one or more indentures supplemental thereto, in form
satisfactory to the Trustee to establish the form or terms of Debt Securities of any series as
permitted by Section 2.01 and Section 3.01 of the said Indenture;

WHEREAS the Company has offered to exchange any and all existing 7.625% Notes due 2032 of Household
Finance Corporation (the “Household Notes”) for the Company’s 7.625% Subordinated Notes due
2032 (the “Notes”) in an exchange offer (the “Exchange Offer”) under the terms and
conditions set forth in the offering memorandum dated October 27, 2004 (the “Offering
Memorandum”);

WHEREAS the Company, upon completion of the Exchange Offer, will issue the Notes to tendering
holders of the Household Notes in exchange for the Household Notes;

WHEREAS all acts and things necessary to issue the Notes and to make this Supplemental Indenture a
valid agreement of the Company and the Trustee, in accordance with its terms, have been done;

NOW, THEREFORE, each party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of the Notes issued hereunder.

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1 Definitions.

     “Agent” means any Registrar, Paying Agent, authenticating agent or co-registrar.

     “Book-Entry Depositary” means the depositary designated by the Company in the Deposit
Agreement until a successor depositary shall have become such pursuant to applicable provisions of
the Deposit Agreement, and thereafter “Book-Entry Depositary” shall mean such successor depositary.

     “Book-Entry Interests” means interests maintained in book-entry form in the Certificateless
Depositary Interests.

     “Certificateless Depositary Interests” or “CDIs” means the certificateless depositary
interest, issued by the Book-Entry Depositary to DTC or its nominee pursuant to the Deposit
Agreement, that represents a 100% interest in a Global Note issued under this Supplemental
Indenture.

2

 

     “Closing Date” means the date on which the Notes are originally issued under this Supplemental
Indenture.

     “Definitive Registered Security” means any Note registered in the Registrar’s books,
substantially in the form attached hereto as Exhibit C. For purposes of the Indenture, the
Definitive Registered Security is a Registered Security.

     “Deposit Agreement” means the Book-Entry Deposit Agreement dated the date of this Supplemental
Indenture among the Company, HSBC Bank USA, National Association and the holders and beneficial
owners referred to therein.

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

     “Exchange Notes” means any securities of the Company containing terms identical to the Notes
(except that such Exchange Notes shall be registered under the Securities Act) that are issued and
exchanged for the Notes pursuant to the Registration Rights Agreement and this Indenture.

     “Global Notes” means the Rule 144A Global Notes, the Regulation S Global Notes and the
Unrestricted Global Notes, collectively. For purposes of the Indenture, the Global Notes are
Permanent Global Securities.

     “Initial
Global Notes” means the Rule 144A Global Note and the Regulation S Global Note.

     “Non-U.S. Person” means a person who is not a “U.S. person” as defined under Regulation S.

     “Notes” means the 7.625 % Subordinated Notes due 2032 of the Company denominated in U.S.
dollars issued, authenticated and delivered under the Indenture as supplemented by this
Supplemental Indenture and as amended or supplemented from time to time pursuant to the terms of
the Indenture and includes any Exchange Notes to be issued and exchanged for Notes pursuant to the
Registration Rights Agreement and the Indenture.

     “Participant” means, with respect to DTC, a Person who has an account with DTC.

     “Private Placement Legend” means the legend initially set forth on the Notes in the form set
forth in Section 2.2.

     “QIB” means a “qualified institutional buyer” as defined under Rule 144A.

     “Registered Exchange Offer” has the meaning set forth in Section 3.1.

     “Registration Rights Agreement” has the meaning set forth in Section 4.1.

     “Registration Statement” means the Registration Statement as defined in the Registration
Rights Agreement.

     “Regulation S” means Regulation S under the Securities Act.

     “Regulation S Definitive Registered Security” means a Definitive Registered Security issued in
respect of an interest in a Regulation S Global Note.

3

 

     “Regulation S Global Note” means the bearer global Note or Notes without coupons,
substantially in the form of Exhibit B attached hereto and deposited with the Book-Entry
Depository, which will represent all of the Notes sold outside of the United States unless or until
Definitive Registered Securities are issued in respect of all or any Notes represented by the
Regulation S Global Note in which case the “Regulation S Global Note” will represent all those
Notes which are not from time to time evidenced by Regulation S Definitive Registered Securities.

     “Rule 144A” means Rule 144A under the Securities Act.

     “Rule 144A Definitive Registered Security” means a Definitive Registered Security issued in
respect of an interest in a Rule 144A Global Note.

     “Rule 144A Global Note” means the bearer global Note or Notes without coupons, substantially
in the form of Exhibit A attached hereto and deposited with the Book-Entry Depositary, which will
represent all of the Notes sold in the United States, unless or until Definitive Registered
Securities are issued in respect of all or any Notes represented by the Rule 144A Global Note in
which case the “Rule 144A Global Note” will represent all those Notes which are not from time to
time evidenced by Rule 144A Definitive Registered Securities.

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

     “Unrestricted
Global Note” means any Global Note that does not and is not required to bear the
Private Placement Legend.

     SECTION 1.2 Rules of Construction. All capitalized terms used but not defined herein
shall have the meaning ascribed to them in the Indenture. In this Supplemental Indenture, unless
the context otherwise requires:

	 	(a)	 	a term has the meaning assigned to it;
	 
	 	(b)	 	“or” is not exclusive;
	 
	 	(c)	 	words in the singular include the plural, and words in the plural include the
singular;
	 
	 	(d)	 	“herein,” “hereof” and other words of similar import refer to this Supplemental
Indenture as a whole and not to any particular Article, Section or other Subsection;
	 
	 	(e)	 	The symbol “$” refers to United States dollars, or such other money of the
United States that at the time of payment is legal tender for payment of public and
private debts.

ARTICLE II

THE NOTES

     SECTION 2.1 Form and Dating. The Notes and the Trustee’s certificate of
authentication with respect thereto shall be substantially in the form set forth in Exhibit A, in
the case of the Rule 144A Global Note, Exhibit B, in the case of the Regulation S Global Note,
Exhibit C, in the case of a Definitive Registered Security, and Exhibit D in the case of

4

 

an Unrestricted Global Note with such appropriate insertions, omissions, substitutions and
other variations as are permitted or required by the Indenture. Each such Exhibit is annexed
hereto and is hereby incorporated in and expressly made a part of this Supplemental Indenture. The
Notes may have notations, legends or endorsements required by law, rule or usage to which the
Company is subject. Each of the Rule 144A Global Note and the Regulation S Global Note shall be
dated the Closing Date. Each Definitive Registered Security and each Unrestricted Global Note
shall be dated the date of its authentication. To the extent applicable, the Company and the
Trustee, by their execution of this Supplemental Indenture, expressly agree to the terms and
conditions of the Notes set forth in Exhibits A, B, C and D hereof and to be bound thereby.

     Notes initially offered and issued to QIBs shall be issued in the form of one or more
permanent global securities in bearer form, substantially in the form set forth in Exhibit A hereto
(a “Rule 144A Global Note”), duly executed by the Company and authenticated by the Trustee
as hereinafter provided and deposited with the Book-Entry Depositary for the benefit of DTC and its
Participants in accordance with the provisions of the Deposit Agreement.

     Notes issued to non-U.S. investors outside of the United States shall be issued in the form of
one or more permanent global certificates in bearer form, substantially in the form set forth in
Exhibit B hereto (a “Regulation S Global Note”), duly executed by the Company and
authenticated by the Trustee as hereinafter provided and deposited with the Book-Entry Depositary
for the benefit of DTC and its Participants in accordance with the provisions of the Deposit
Agreement.

     The aggregate principal amount of the Global Notes may from time to time be increased or
decreased by adjustments made on the records of the Book-Entry Depositary in accordance with
instructions given by DTC in accordance with the terms of the Deposit Agreement.

     Definitive Registered Securities may be issued from time to time in accordance with the
provisions of the Indenture, in the form of Exhibit C hereto.

     SECTION 2.2. Restrictive Legends. Unless and until a Note is exchanged for an
Exchange Note or sold in connection with an effective Registration Statement pursuant to the
Registration Rights Agreement, (i) the Rule 144A Global Notes and Rule 144A Definitive Registered
Securities shall bear the legend set forth below on the face thereof and (ii) until at least the
41st day after the Closing Date, the Regulation S Global Notes and the Regulation S Definitive
Registered Securities shall bear the legend set forth below on the face thereof.

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT OR IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.

     Each Global Note shall also bear the following legend on the face thereof:

5

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO A
SUCCESSOR BOOK-ENTRY DEPOSITARY AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.7 OF
THE SUPPLEMENTAL INDENTURE.

     SECTION 2.3 Execution and Authentication. The Notes originally issued hereunder and
any additional Notes issued hereunder shall be treated as a single class of securities for all
purposes under the Indenture. The Global Notes shall be issuable only in bearer form and the
Definitive Registered Securities shall be issuable only in registered form. The Notes shall be
issued without coupons and only in denominations of $1,000 principal amount or any integral
multiple thereof.

     SECTION 2.4 Holders to Be Treated as Owners. Notwithstanding Section 3.08 of the
Indenture, nothing therein or herein shall prevent the Company, the Trustee or any agent of the
Company or the Trustee, from giving effect to any written certification, proxy or other
authorization furnished by the Book-Entry Depositary or impair, as between DTC and its
Participants, the operation of customary practices governing the exercise of the rights of a
beneficial owner of any Note. Each person owning an interest in CDIs must rely on the procedures
of the Book-Entry Depositary and DTC and on the procedures of the DTC Participant through which
such person owns its interest to exercise any rights and obligations of a holder under the
Indenture or the Deposit Agreement.

     SECTION 2.5 Transfer and Exchange.

     (a) Definitive Registered Securities issued upon any exchange of beneficial interests in the
Rule 144A Global Note or the Regulations S Global Note pursuant to Section 3.05 of the Indenture
shall bear the legends set forth in Section 2.2 hereof and shall be subject to all restrictions on
transfer contained therein to the same extent as the Global Note so exchanged.

     (b) Upon the occurrence of the Registered Exchange Offer in accordance with the Registration
Rights Agreement, the Company shall issue and upon receipt of an authentication order in accordance
with Section 3.03 of the Indenture, the Trustee (or its agent in accordance with the said Section
3.03) shall authenticate one or more Unrestricted Global Notes in the form of Exhibit D hereto in
an aggregate principal amount equal to the principal amount of the Book-Entry Interests tendered
for acceptance by persons participating therein. The same Unrestricted Global Note may represent
interests in the Notes formerly represented by the Rule 144A Global Notes and those represented by
the Regulation S Global Notes. Such Unrestricted Global Notes shall have a single ISIN and Common
Code number. Concurrently with the issuance of any such Global Note, the Trustee shall cause the
aggregate principal amount of the applicable Initial Global Note to be reduced accordingly and
direct the Book-Entry Depositary to make a corresponding reduction in its book-entry system in
respect of the Certificateless Depositary Interest.

     SECTION 2.6 Book-Entry Provisions for Global Notes (a) The Global Notes
initially shall be delivered to the Book-Entry Depositary and the Rule 144A Global Note and the
Regulation S Global Note shall bear legends as set forth in Section 2.2.

6

 

     (b) Transfers of any Global Note shall be limited to transfers of such Global Note in whole,
but not in part, and shall be made only as permitted under the Deposit Agreement. Transfers of
interests from one Global Note to another Global Note shall be effected by an increase or a
reduction in the aggregate principal amount of Notes represented by the first Global Note and the
corresponding reduction or increase in the aggregate principal amount of Notes represented by the
other Global Note. Any beneficial interest in one of the Global Notes that is transferred to a
person who takes delivery in the form of an interest in another Global Note will, upon transfer,
cease to be an interest in such Global Note and become an interest in such other Global Note and,
accordingly, will thereafter be subject to all transfer restrictions, if any, and other procedures
or conditions applicable to beneficial interests in such other Global Note for as long as it
remains such an interest.

     (c) The Holder of a Global Note may grant proxies and otherwise authorize any person,
including Participants and persons that may hold interests through Participants, to take any action
which a Holder is entitled to take under this Indenture or the Notes.

     SECTION 2.7 Special Transfer Provisions. Unless and until a Note is exchanged for an
Exchange Note or sold in connection with an effective Registration Statement pursuant to the
Registration Rights Agreement, the following provisions shall apply:

     (a) Transfers to QIBs. The following provisions shall apply with respect to any
proposed transfer of a Note to a QIB (excluding Non-U.S. Persons):

     (i) If the Note to be transferred is (A) either a Rule 144A Definitive Registered
Security or Regulation S Definitive Registered Security prior to the removal of the Private
Placement Legend, the transferor must advise the Company and the Trustee in writing that
such transfer is being made to a person whom the transferor reasonably believes is a QIB
within the meaning of Rule 144A in a transaction meeting the requirement of Rule 144A or (B)
an interest in a Rule 144A Global Note, the transfer of such interest may be effected only
through the book-entry system maintained by DTC.

     (ii) If the proposed transferee is a Participant and the Note to be transferred
consists of Rule 144A Definitive Registered Securities, upon receipt by the Trustee of the
documents referred to in paragraph (i) above and instructions given in accordance with the
procedures of DTC and the Book-Entry Depositary, the Book-Entry Depositary shall reflect on
its books and records the date and an increase in the principal amount of Rule 144A Global
Notes in an amount equal to the principal amount of the Rule 144A Definitive Registered
Securities to be transferred, and the Trustee shall cancel the Rule 144A Definitive
Registered Securities so transferred.

     (b) Transfers of Interests in the Regulation S Global Notes or Regulation S Definitive
Registered Securities. The following provisions shall apply with respect to any transfer of
interests in Regulation S Global Notes or Regulation S Definitive Registered Securities:

     (i) prior to the removal of the Private Placement Legend from the Regulation S Global
Notes or Regulation S Definitive Registered Securities pursuant to Section 2.2,

7

 

     (A) if such transfer is made to Non-U.S. Person, such transfer must comply with
paragraph (c) of this Section 2.7, and

     (B) if such transfer is made to QIBs, the transferor must advise the Company
and the Trustee in writing that such transfer is being made to a person whom the
transferor reasonably believes is a QIB within the meaning of Rule 144A in a
transaction meeting the requirement of Rule 144A and, if such transfer involves an
interest in a Rule 144A Global Note, the transfer of such interest may be effected
only through the book-entry system maintained by DTC, and

     (ii) after such removal of the Private Placement Legend, transfers of any such Note may
be made without provision of any additional certification.

     (c) Transfers to Non-U.S. Persons at Any Time. The following provisions shall apply
with respect to any transfer of a Note to a Non-U.S. Person:

     (i) any proposed transfer to any Non-U.S. Person of a Rule 144A Definitive Registered
Security or an interest in a Rule 144A Global Note may be made upon receipt by the Trustee
of a certificate substantially in the form of Exhibit E hereto from the proposed transferor.

     (ii) (a) If the proposed transferor is a Participant holding a beneficial interest in a
Rule 144A Global Note, upon receipt by the Trustee of (A) the documents, if any, required by
paragraph (i) and (B) instructions in accordance with the procedures of DTC and the
Book-Entry Depositary, the Book-Entry Depositary shall reflect on its books and records the
date and a decrease in the principal amount of the Rule 144A Global Notes in an amount equal
to the principal amount of the beneficial interest in the Rule 144A Global Notes to be
transferred, and (b) if the proposed transferee is a Participant, upon receipt by the
Book-Entry Depositary of instructions given in accordance with the procedures of DTC and the
Book-Entry Depositary, the Book-Entry Depositary shall reflect on its books and records the
date and an increase in the principal amount of the Regulation S Global Notes in an amount
equal to the principal amount of the Rule 144A Definitive Registered Security or the Rule
144A Global Notes, as the case may be, to be transferred, and the Trustee shall cancel the
Definitive Registered Security, if any, so transferred or decrease the amount of the Rule
144A Global Notes.

     (d) Transfers between Unrestricted Global Notes. The following restrictions shall
apply with respect to transfers between Unrestricted Global Notes:

     (i) If the proposed transferor is a Participant holding a beneficial interest in an
Unrestricted Global Note, upon receipt by the Trustee of instructions in accordance with
the procedures of DTC and the Book-Entry Depositary, the Book-Entry Depositary shall reflect
on its books and records the date and a decrease in the principal amount of the Unrestricted
Global Note in which such transferor has a beneficial interest in an amount equal to the
principal amount of the beneficial interest in such Unrestricted Global Note to be
transferred, and (ii) if the proposed transferee is a Participant, upon receipt by the
Book-Entry Depositary of instructions given in accordance with the procedures of DTC and the
Book-Entry Depositary, the Book-Entry Depositary shall reflect on its books and records the
date and an increase in the

8

 

principal amount of the Unrestricted Global Note in which the transferee holds a
beneficial interest in an amount equal to the principal amount of the beneficial interest in
the other Unrestricted Global Note to be transferred, and the Trustee shall decrease the
amount of the Unrestricted Global Note in which the transferor had a beneficial interest.

     (e) Private Placement Legend. Upon the transfer, exchange or replacement of Notes not
bearing the Private Placement Legend, the Trustee shall deliver Notes that do not bear the Private
Placement Legend. Upon the transfer, exchange or replacement of Notes bearing the Private Placement
Legend, the Trustee shall deliver only Notes that bear the Private Placement Legend unless (i) the
Private Placement Legend is no longer required by Section 2.2, or (ii) if the time period referred
to in Rule 144(k) has expired and there is delivered to the Trustee an Opinion of Counsel
reasonably satisfactory to the Company and the Trustee to the effect that neither such legend nor
the related restrictions on transfer are required in order to maintain compliance with the
provisions of the Securities Act.

     (f) General. By its acceptance of any Note bearing the Private Placement Legend, each
Holder of such Note acknowledges the restrictions on transfer of such Note set forth in this
Indenture and in the Private Placement Legend and agrees that it will transfer such Note only as
provided in this Indenture. In connection with any transfer of Notes, each Holder agrees by its
acceptance of the Notes to furnish the Trustee, the Book-Entry Depositary or the Company such
certifications, legal opinions or other information as either of them may reasonably require to
confirm that such transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act; provided that the Trustee shall
not be required to determine (but may conclusively rely on a determination made by the Company with
respect to) the sufficiency of any such certifications, legal opinions or other information.

     The Trustee shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.6 or this Section 2.7 in accordance with its customary record
retention procedures. The Company shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time upon the giving of
reasonable written notice to the Trustee.

ARTICLE III

MISCELLANEOUS

     SECTION 3.1 Execution as Supplemental Indenture. This Supplemental Indenture is
executed and shall be construed as an indenture supplemental to the Indenture and, as provided in
the Indenture, this Supplemental Indenture shall form a part of the Indenture. This Supplemental
Indenture, however, establishes the form and terms of the Notes only and shall not be construed to
have any effect on Debt Securities of any other series issued under the Indenture, or to have any
effect on the Indenture as it relates to Debt Securities of any other series, in each case except
as explicitly provided herein. All terms of the Indenture, as supplemented and amended by this
Supplemental Indenture or otherwise, apply to the Notes issued hereunder.

     SECTION 4.2 Governing Law. This Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York.

9

 

     SECTION 4.3 Conflicts. In the event of a conflict between the terms and conditions of
the Indenture and the terms and conditions of this Supplemental Indenture, the terms and conditions
of this Supplemental Indenture shall prevail.

     SECTION 4.4 Counterparts. This Supplemental Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.

     SECTION 4.5 Headings. The descriptive headings of the several Articles of this
Supplemental Indenture were formulated, used and inserted in this Supplemental Indenture for
convenience only and shall not be deemed to affect the construction of any of the provisions
hereof.

10

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the day and year first above written.

	 	 	 	 	 
	 	HSBC HOLDINGS PLC

as Issuer

 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	The Bank of New York

as Trustee

 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	HSBC Bank USA, National Association

as Paying Agent

 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	HSBC Bank USA, National Association

as Registrar

 	 
	 	By	/s/	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	HSBC Bank USA, National Association

as Book-Entry Depositary

 	 
	 	By	/s/	 
	 	 	 	 
	 	Attest: 	 
	 

11

 

EXHIBIT A

[APPLICABLE LEGENDS]

FORM OF RULE 144A GLOBAL NOTE

HSBC Holdings plc

U.S.$ 487,913,000

7.625% SUBORDINATED NOTES

DUE MAY 17, 2032

CUSIP Number: 404280AD1

ISIN:                   US404280AD18

Common Code:   020657766

     This is a Global Note in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer”, which term includes any successor Person under the 7.625% Indenture hereinafter
referred to) of debt securities, designated as specified in the title hereof, in the aggregate face
amount of up to U.S.$ 487,913,000.

     The Issuer, for value received, hereby promises to pay the Holder of this Global Note on May
17, 2032 or on such earlier date as this Global Note may be redeemed (“Maturity”), the
principal amount hereof and to pay interest on the said principal amount from November 17, 2004 or
the most recent Interest Payment Date on which interest has been paid or duly provided for,
semi-annually in arrears on May 17 and November 17 in each year (each such date, an “Interest
Payment Date”), commencing May 17, 2005, at the rate of 7.625% per annum, until the principal
amount hereof is paid or made available for payment; provided that, if, in
accordance with the terms of the Registration Rights Agreement, neither an Exchange Offer
Registration Statement nor a Shelf Registration Statement is filed with the Commission before
December 3, 2005, or neither an Registered Exchange Offer is consummated nor the Shelf Registration
Statement is declared effective by the Commission before December 23, 2005, the annual interest
rate borne by the Notes shall be increased by 0.5% from the rate shown on the face of the Notes
from and including the date on which any such registration default shall occur to but excluding the
date on which all registration defaults have been cured; provided further
that, if the Issuer does not pay any installment of interest on the pertinent Interest
Payment Date or all or any part of principal at Maturity, the obligation to make such payment and
such Interest Payment Date or Maturity, as the case may be, shall be deferred until (i) in the case
of a payment of interest, the date upon which a dividend is paid on any class of share capital of
the Issuer and (ii) in the case of a payment of principal, the first Business Day after the date
that falls six months after the original Maturity. Failure by the Issuer to make any such payment
prior to such deferred Interest Payment Date or Maturity shall not constitute a default by the
Issuer or otherwise allow any Holder to sue the Issuer for such payment or to take any other
action. Each payment so deferred will accrue interest at the rate of 7.625% per annum. Any
payment so deferred 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 Interest
Payment Date or Maturity as the case may be.

 

 

     Payment of interest, if any, in respect of this Global Note may be made by check, or by wire
transfer or transfer by any other means to an account designated in writing by the Holder of this
Global Note to the Paying Agent.

     All amounts of principal of and interest and related deferred payments on this Global Note
will be paid by the Issuer, without deduction or withholding for, or on account of, any and all
present and future 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 any taxing 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 law by the Taxing Jurisdiction, the Issuer will pay
such additional amounts (“Additional Amounts”) as may be necessary in order that the net
amounts paid to the Holder of this Global Note, after such deduction or withholding, shall equal
the respective amounts of principal and interest, which would have been payable in respect of this
Global Note had no such deduction or withholding been required; provided 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 of or the owner of a beneficial
interest in this Global Note is a domiciliary, national or resident of, or engaging in business or
maintaining a permanent establishment or physically present in the United Kingdom or any political
subdivision thereof or therein or otherwise has some connection or former connection with the
United Kingdom or any political subdivision thereof or therein other than the holding or ownership
of the Global Note, or the collection of any payment of (or in respect of) principal of and
interest and related deferred payments on or the enforcement of, any Global Note, (ii) the Global
Note or other means of payment of interest or related deferred payment in respect of this Global
Note is presented for payment in the United Kingdom, (iii) the Global Note or other means of
payment of interest or related deferred payment in respect of this Global Note is presented 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 the same for payment at the close of such 30 day period, (iv) such tax, levy, impost,
duty, charge, fee, deduction or withholding is imposed on any interest or related deferred payment
to an individual and is required to be made pursuant to European Council Directive 2003/48/EC or
any other directive implementing the conclusions of the ECOFIN Council meeting of 26-27 November
2000 on the taxation of saving income, or any law implementing or complying with, or introduced in
order to conform to, such Directive, (v) presentation for payment of this Global Note was made to a
paying agent who was required to make (or pass through) such deduction or withholding and
presentation for payment could have been made to a paying agent who was not required to make (or
pass through) such deduction or withholding, (vi) there was a failure to comply by the Holder or
the beneficial owner of this Global Note or the beneficial owner of any payment on this Global Note
with a request of the Issuer addressed to the Holder or the beneficial owner, including a request
of the Issuer related to a claim for relief under any applicable double tax treaty (x) to provide
information concerning the nationality, residence, identity or connection with a taxing
jurisdiction of the Holder or the beneficial owner or (y) to make any declaration or other similar
claim to satisfy any information or reporting requirement, if the information or declaration is
required or imposed by a statute, treaty, regulation, ruling or administrative practice of the
Taxing Jurisdiction as a precondition to exemption from withholding or deduction of all or part of
the tax, duty, assessment or other governmental charge, (vii) such tax, levy, impost, duty, charge,
fee,

2

 

deduction or withholding is imposed in respect of any estate, inheritance, gift, sale,
transfer, personal property, wealth or similar tax, duty, assessment or other governmental charge
or (viii) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed in respect
of any combination of the above items.

     Whenever in this Global Note there is mentioned, in any context, the payment of any principal
of or interest on this Global Note, such mention shall be deemed to include mention of the payment
of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof and express mention of the payment of Additional Amounts (if applicable)
in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made.

     Upon any exchange of a part of this Global Note for Definitive Registered Securities, the
portion of the principal amount hereof so exchanged shall be endorsed by the Book-Entry Depositary
on the Schedule hereto. The principal amount hereof shall be reduced for all purposes by the
amount so exchanged.

     Reference is hereby made to the further provisions of this Global Note set forth on the
reverse hereof, which further provisions shall for the purposes hereof have the same effect as if
set forth at this place.

     Unless the certificate of authentication hereon has been executed by the Trustee or an
authenticating agent by manual signature, this Global Note shall be not be entitled to any benefit
under the Indenture or be valid or obligatory for any purposes.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	HSBC Holdings plc

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Dated: December 3, 2004

3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Debt Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York

   as Trustee
 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

4

 

REVERSE OF RULE 144A GLOBAL NOTE

U.S.$ 487,913,000

7.625% SUBORDINATED NOTES

DUE May 17, 2032

     This
Global Note is one of a duly authorized issue of debt securities (“Debt
Securities”) issued and to be issued in one or more series under and governed by an Indenture
dated as of December 10, 2002, between the Issuer and The Bank of New York, as trustee (the
“Trustee”, which term includes any successor trustee under the Indenture), (the “Base
Indenture”), as supplemented by a Supplemental Indenture dated as of December 3, 2004, between
the Issuer and the Trustee, (the “Supplemental Indenture”; and together with the Base
Indenture, the “Indenture”) to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Issuer, the Trustee, the Holders of the Debt Securities and of the
terms upon which the Debt Securities are, and are to be, authenticated and delivered.

     The rights of Holders of the Debt Securities will, in the event of the winding up of the
Issuer, to the extent more fully set out in the Indenture, be subordinated and subject in right of
payment to the prior payment in full of all claims of creditors of the Issuer except creditors in
respect of any liability of the Issuer however arising for the payment of money, the right to
payment of which by the Issuer by the terms thereof is, or is expressed to be, subordinated in the
event of a winding up of the Issuer to the claims of all or any of the creditors of the Issuer, and
creditors in respect of debt securities with no maturity issued pursuant to a separate indenture
between the Issuer and a trustee.

     Under the terms of the Indenture, the Debt Securities of any series (i) are redeemable, as a
whole but not in part, at the option of the Issuer, 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, if any, in respect of such Debt Securities to the date fixed for
redemption, if, at any time, the Issuer shall determine that (a) in making payment under such Debt
Securities in respect of principal or interest or related deferred payment it has or will or would
become obligated to pay Additional Amounts, provided such obligation to pay Additional Amounts
results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the
official application or interpretation of such laws (including a decision of any court or
tribunal), or any change in, or in the official application or interpretation of, or execution of,
or amendment to, any treaty or treaties affecting taxation to which the United Kingdom is a party,
which change, amendment or execution becomes effective on or after the original issuance of such
Debt Securities or (b) the payment of interest in respect of such Debt Securities has become or
will or would be treated as a “distribution” within the meaning of Section 209 of the Income and
Corporation Taxes Act 1988 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being), as a result of any change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws including a
decision of any court, which change or amendment becomes effective on or after the original
issuance of such Debt Securities of such series; provided, however, that in the case of (a) above,
no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the
Issuer would be obliged to pay Additional Amounts were a payment in respect of such Debt Securities
then due.

5

 

     If an Event of Default with respect to the Debt Securities of this series shall occur and be
continuing, the principal of all of the Debt Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. The Indenture provides that
in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such
series. If a Default with respect to Debt Securities of this series occurs and is continuing, the
Trustee may pursue certain remedies as set forth in the Indenture. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Debt Securities of this series may waive
any past event of default or any past default under the Indenture or the Debt Securities of this
series except a default in the payment of principal of on or any installment of interest or related
deferred payment on any of the Debt Securities of such series or in respect to a covenant or
provision which under the Indenture cannot be modified or amended without the consent of the Holder
of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt
Security and of any Debt Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt
Security or such other Debt Securities.

     The Indenture contains provisions permitting the Issuer and the Trustee (i) without the
consent of the Holders of any Debt Securities issued under the Indenture to execute one or more
supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure
the Debt Securities, and (ii) with the consent of the holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities
affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any
manner the rights of holders of Debt Securities under the Indenture; provided, that, with respect
to certain enumerated provisions, no such supplemental indenture may be entered into without the
consent of the holder of each Outstanding Debt Security affected thereby. The Indenture also
permits the holders of at least a majority in aggregate principal amount of the Outstanding Debt
Securities of each series to be affected, on behalf of the Holders of all Debt Securities of such
series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture.
Any such consent or waiver by the Holder of this Global Note shall bind every future Holder of this
Global Note and of any Global Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Global Note or such other Global Securities.

     The Depositary may surrender this Global Note or any portion hereof in exchange, in whole or
in part, for definitive Debt Securities, of this series in registered form and the Registrar,
acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Note or
the portions thereof to be exchanged, an equal aggregate face amount of definitive Debt Securities
(duly countersigned) in the numbers and in the names advised by the Depositary.

     The Indenture and the Debt Securities may be amended and modified as provided in the
Indenture.

     All terms used in this Debt Security and not otherwise defined shall have the meanings
ascribed to them in the Indenture.

6

 

     The Indenture and the Debt Securities and the rights and duties of the Trustee shall be
governed by and construed in accordance with the law of the State of New York, except that matters
relating to the subordination provisions contained in Article Twelve of the Base Indenture and in
the Debt Securities and the authorization and execution by the Issuer of the Indenture and the Debt
Securities shall be governed by English law.

7

 

SCHEDULE OF PRINCIPAL AMOUNT OF INDEBTEDNESS

EVIDENCED BY THIS NOTE

     The
initial principal amount of indebtedness evidenced by this Note shall be $_______. The following decreases/increases in the principal amount evidenced by this Note
have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Principal	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of this	 	 	Notation Made	 
	 	 	Decrease in	 	 	Increase in	 	 	Global Note	 	 	by or on	 
	 	 	Principal Amount of	 	 	Principal Amount of	 	 	Following such	 	 	Behalf of	 
	Date of Decrease/Increase	 	this Global Note	 	 	this Global Note	 	 	Decrease/Increase	 	 	Trustee	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

8

 

EXHIBIT B

[APPLICABLE LEGENDS]

FORM OF REGULATION S GLOBAL NOTE

HSBC Holdings plc

U.S.$487,913,000

7.625% SUBORDINATED NOTES

DUE MAY 17, 2032

	 	 	 
	CUSIP Number:  

	 	G4634UAV4
	ISIN:  

	 	USG4634UAV47
	Common Code:  

	 	020657863

     This is a Global Note in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer”, which term includes any successor Person under the 7.625% Indenture hereinafter
referred to) of debt securities, designated as specified in the title hereof, in the aggregate face
amount of up to U.S.$487,913,000.

     The Issuer, for value received, hereby promises to pay the Holder of this Global Note on May
17, 2032 or on such earlier date as this Global Note may be redeemed (“Maturity”), the
principal amount hereof and to pay interest on the said principal amount from November 17, 2004 or
the most recent Interest Payment Date on which interest has been paid or duly provided for,
semi-annually in arrears on May 17 and November 17 in each year (each such date, an “Interest
Payment Date”), commencing May 17, 2005, at the rate of 7.625% per annum, until the principal
amount hereof is paid or made available for payment; provided that, if, in
accordance with the terms of the Registration Rights Agreement, neither an Exchange Offer
Registration Statement nor a Shelf Registration Statement is filed with the Commission before
December 3, 2005, or neither an Registered Exchange Offer is consummated nor the Shelf Registration
Statement is declared effective by the Commission before December 23, 2005, the annual interest
rate borne by the Notes shall be increased by 0.5% from the rate shown on the face of the Notes
from and including the date on which any such registration default shall occur to but excluding the
date on which all registration defaults have been cured; provided further
that, if the Issuer does not pay any installment of interest on the pertinent Interest
Payment Date or all or any part of principal at Maturity, the obligation to make such payment and
such Interest Payment Date or Maturity, as the case may be, shall be deferred until (i) in the case
of a payment of interest, the date upon which a dividend is paid on any class of share capital of
the Issuer and (ii) in the case of a payment of principal, the first Business Day after the date
that falls six months after the original Maturity. Failure by the Issuer to make any such payment
prior to such deferred Interest Payment Date or Maturity shall not constitute a default by the
Issuer or otherwise allow any Holder to sue the Issuer for such payment or to take any other
action. Each payment so deferred will accrue interest at the rate of 7.625% per annum. Any
payment so deferred 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 Interest
Payment Date or Maturity as the case may be.

 

 

     Payment of interest in respect of this Global Note may be made by check, or by wire transfer
or transfer by any other means to an account designated in writing by the Holder of this Global
Note to the Paying Agent.

     All amounts of principal of and interest and related deferred payments on this Global Note
will be paid by the Issuer, without deduction or withholding for, or on account of, any and all
present and future 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 any taxing 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 law by the Taxing Jurisdiction, the Issuer will pay
such additional amounts (“Additional Amounts”) as may be necessary in order that the net
amounts paid to the Holder of this Global Note, after such deduction or withholding, shall equal
the respective amounts of principal and interest, which would have been payable in respect of this
Global Note had no such deduction or withholding been required; provided 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 of or the owner of a beneficial
interest in this Global Note is a domiciliary, national or resident of, or engaging in business or
maintaining a permanent establishment or physically present in the United Kingdom or any political
subdivision thereof or therein or otherwise has some connection or former connection with the
United Kingdom or any political subdivision thereof or therein other than the holding or ownership
of the Global Note, or the collection of any payment of (or in respect of) principal of and
interest and related deferred payments on or the enforcement of, any Global Note, (ii) the Global
Note or other means of payment of interest or related deferred payment in respect of this Global
Note is presented for payment in the United Kingdom, (iii) the Global Note or other means of
payment of interest or related deferred payment in respect of this Global Note is presented 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 the same for payment at the close of such 30 day period, (iv) such tax, levy, impost,
duty, charge, fee, deduction or withholding is imposed on any interest or related deferred payment
to an individual and is required to be made pursuant to European Council Directive 2003/48/EC or
any other directive implementing the conclusions of the ECOFIN Council meeting of 26-27 November
2000 on the taxation of saving income, or any law implementing or complying with, or introduced in
order to conform to, such Directive, (v) presentation for payment of this Global Note was made to a
paying agent who was required to make (or pass through) such deduction or withholding and
presentation for payment could have been made to a paying agent who was not required to make (or
pass through) such deduction or withholding, (vi) there was a failure to comply by the Holder or
the beneficial owner of this Global Note or the beneficial owner of any payment on this Global Note
with a request of the Issuer addressed to the Holder or the beneficial owner, including a request
of the Issuer related to a claim for relief under any applicable double tax treaty (x) to provide
information concerning the nationality, residence, identity or connection with a taxing
jurisdiction of the Holder or the beneficial owner or (y) to make any declaration or other similar
claim to satisfy any information or reporting requirement, if the information or declaration is
required or imposed by a statute, treaty, regulation, ruling or administrative practice of the
Taxing Jurisdiction as a precondition to exemption from withholding or deduction of all or part of
the tax, duty, assessment or other governmental charge, (vii) such tax, levy, impost, duty, charge,
fee,

2

 

deduction or withholding is imposed in respect of any estate, inheritance, gift, sale,
transfer, personal property, wealth or similar tax, duty, assessment or other governmental charge
or (viii) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed in respect
of any combination of the above items.

     Whenever in this Global Note there is mentioned, in any context, the payment of any principal
of or interest on this Global Note, such mention shall be deemed to include mention of the payment
of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof and express mention of the payment of Additional Amounts (if applicable)
in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made.

     Upon any exchange of a part of this Global Note for Definitive Registered Securities, the
portion of the principal amount hereof so exchanged shall be endorsed by the Book-Entry Depositary
on the Schedule hereto. The principal amount hereof shall be reduced for all purposes by the
amount so exchanged.

     Reference is hereby made to the further provisions of this Global Note set forth on the
reverse hereof, which further provisions shall for the purposes hereof have the same effect as if
set forth at this place.

     Unless the certificate of authentication hereon has been executed by the Trustee or an
authenticating agent by manual signature, this Global Note shall be not be entitled to any benefit
under the Indenture or be valid or obligatory for any purposes.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	HSBC Holdings plc

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Dated: December 3, 2004

3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Debt Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York

   as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

4

 

	 	 	 	 	 

REVERSE OF REGULATION S GLOBAL NOTE

U.S.$487,913,000

7.625% SUBORDINATED NOTES

DUE MAY 17, 2032

     This Global Note is one of a duly authorized issue of debt securities (“Debt
Securities”) issued and to be issued in one or more series under and governed by an Indenture
dated as of December 10, 2002, between the Issuer and The Bank of New York, as trustee (the
“Trustee”, which term includes any successor trustee under the Indenture), (the “Base
Indenture”), as supplemented by a Supplemental Indenture dated as of December 3, 2004, between
the Issuer and the Trustee, (the “Supplemental Indenture”; and together with the Base
Indenture, the “Indenture”) to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Issuer, the Trustee, the Holders of the Debt Securities and of the
terms upon which the Debt Securities are, and are to be, authenticated and delivered.

     The rights of Holders of the Debt Securities will, in the event of the winding up of the
Issuer, to the extent more fully set out in the Indenture, be subordinated and subject in right of
payment to the prior payment in full of all claims of creditors of the Issuer except creditors in
respect of any liability of the Issuer however arising for the payment of money, the right to
payment of which by the Issuer by the terms thereof is, or is expressed to be, subordinated in the
event of a winding up of the Issuer to the claims of all or any of the creditors of the Issuer, and
creditors in respect of debt securities with no maturity issued pursuant to a separate indenture
between the Issuer and a trustee.

     Under the terms of the Indenture, the Debt Securities of any series (i) are redeemable, as a
whole but not in part, at the option of the Issuer, 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, if any, in respect of such Debt Securities to the date fixed for
redemption, if, at any time, the Issuer shall determine that (a) in making payment under such Debt
Securities in respect of principal or interest or related deferred payment it has or will or would
become obligated to pay Additional Amounts, provided such obligation to pay Additional Amounts
results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the
official application or interpretation of such laws (including a decision of any court or
tribunal), or any change in, or in the official application or interpretation of, or execution of,
or amendment to, any treaty or treaties affecting taxation to which the United Kingdom is a party,
which change, amendment or execution becomes effective on or after the original issuance of such
Debt Securities or (b) the payment of interest in respect of such Debt Securities has become or
will or would be treated as a “distribution” within the meaning of Section 209 of the Income and
Corporation Taxes Act 1988 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being), as a result of any change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws including a
decision of any court, which change or amendment becomes effective on or after the original
issuance of such Debt Securities of such series; provided, however, that in the case of (a) above,
no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the
Issuer would be obliged to pay Additional Amounts were a payment in respect of such Debt Securities
then due.

5

 

     If an Event of Default with respect to the Debt Securities of this series shall occur and be
continuing, the principal of all of the Debt Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. The Indenture provides that
in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such
series. If a Default with respect to Debt Securities of this series occurs and is continuing, the
Trustee may pursue certain remedies as set forth in the Indenture. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Debt Securities of this series may waive
any past event of default or any past default under the Indenture or the Debt Securities of this
series except a default in the payment of principal of on or any installment of interest or related
deferred payment on any of the Debt Securities of such series or in respect to a covenant or
provision which under the Indenture cannot be modified or amended without the consent of the Holder
of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt
Security and of any Debt Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt
Security or such other Debt Securities.

     The Indenture contains provisions permitting the Issuer and the Trustee (i) without the
consent of the Holders of any Debt Securities issued under the Indenture to execute one or more
supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure
the Debt Securities, and (ii) with the consent of the holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities
affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any
manner the rights of holders of Debt Securities under the Indenture; provided, that, with respect
to certain enumerated provisions, no such supplemental indenture may be entered into without the
consent of the holder of each Outstanding Debt Security affected thereby. The Indenture also
permits the holders of at least a majority in aggregate principal amount of the Outstanding Debt
Securities of each series to be affected, on behalf of the Holders of all Debt Securities of such
series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture.
Any such consent or waiver by the Holder of this Global Note shall bind every future Holder of this
Global Note and of any Global Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Global Note or such other Global Securities.

     The Depositary may surrender this Global Note or any portion hereof in exchange, in whole or
in part, for definitive Debt Securities, of this series in registered form and the Registrar,
acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Note or
the portions thereof to be exchanged, an equal aggregate face amount of definitive Debt Securities
(duly countersigned) in the numbers and in the names advised by the Depositary.

     The Indenture and the Debt Securities may be amended and modified as provided in the
Indenture.

     All terms used in this Debt Security and not otherwise defined shall have the meanings
ascribed to them in the Indenture.

6

 

     The Indenture and the Debt Securities and the rights and duties of the Trustee shall be
governed by and construed in accordance with the law of the State of New York, except that matters
relating to the subordination provisions contained in Article Twelve of the Base Indenture and in
the Debt Securities and the authorization and execution by the Issuer of the Indenture and the Debt
Securities shall be governed by English law.

7

 

SCHEDULE OF PRINCIPAL AMOUNT OF INDEBTEDNESS

EVIDENCED BY THIS NOTE

The initial principal amount of indebtedness evidenced by this Note shall be $_______. The following decreases/increases in the principal amount evidenced by this Note
have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Principal	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of this	 	 	Notation Made	 
	 	 	Decrease in	 	 	Increase in	 	 	Global Note	 	 	by or on	 
	 	 	Principal Amount of	 	 	Principal Amount of	 	 	Following such	 	 	Behalf of	 
	Date of Decrease/Increase	 	this Global Note	 	 	this Global Note	 	 	Decrease/Increase	 	 	Trustee	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

8

 

EXHIBIT C

FORM OF DEFINITIVE REGISTERED SECURITY

HSBC Holdings plc

U.S.$487,913,000

7.625% SUBORDINATED NOTES

DUE MAY 17, 2032

No._______

U.S. $_______

	 	 	 
	Common Code:  

	 	•
	ISIN:  

	 	•

Issue Date:

Issue Price (for each U.S. $1,000 principal amount): U.S. $1,000

     This is a Definitive Registered Security in respect of a duly authorized issue by HSBC
Holdings plc (the “Issuer”, which term includes any successor Person under the 7.625%
Indenture hereinafter referred to) of debt securities, designated as specified in the title hereof,
in the principal sum of U.S.$_______.

     The Issuer, for value received, hereby promises to pay _______, or its registered
assigns, on May 17, 2032 or on such earlier date as this Definitive Registered Security may be
redeemed (“Maturity”), the principal amount hereof and interest on the said principal
amount from November 17, 2004 or the most recent Interest Payment Date on which interest has been
paid or duly provided for, semi-annually in arrears on May 17 and November 17 in each year (each
such date, an “Interest Payment Date”), commencing May 17, 2005, at the rate of 7.625% per
annum, until the principal amount hereof is paid or made available for payment; provided
that, if, in accordance with the terms of the Registration Rights Agreement, neither an
Exchange Offer Registration Statement nor a Shelf Registration Statement is filed with the
Commission before December 3, 2005, or neither an Registered Exchange Offer is consummated nor the
Shelf Registration Statement is declared effective by the Commission before December 23, 2005, the
annual interest rate borne by the Notes shall be increased by 0.5% from the rate shown on the face
of the Notes from and including the date on which any such registration default shall occur to but
excluding the date on which all registration defaults have been cured; provided
further that, if the Issuer does not pay any installment of interest on the
pertinent Interest Payment Date or all or any part of principal at Maturity, the obligation to make
such payment and such Interest Payment Date or Maturity, as the case may be, shall be deferred
until (i) in the case of a payment of interest, the date upon which a dividend is paid on any class
of share capital of the Issuer and (ii) in the case of a payment of principal, the first Business
Day after the date that falls six months after the original Maturity. Failure by the Issuer to
make any such payment prior to such deferred Interest Payment Date or Maturity shall not constitute
a default by the Issuer or otherwise allow any Holder to sue the Issuer for such payment or to take
any other action. Each payment so deferred will accrue interest at the rate of 7.625% per annum.
Any payment so deferred 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 Interest
Payment Date or Maturity as the case may be.

     Interest in respect of this Definitive Registered Note that is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name this
Definitive Registered Note is registered (or to the Holders of one or more Predecessor Global
Notes) at the close of business on the immediately preceding May 12 and November 12 of the relevant
Interest Payment Date (the “Regular Record Date”) for such interest.

     Payment of interest, if any, in respect of this Definitive Registered Note may be made by
check mailed to the address of the Person entitled thereto as such address shall appear in the
Register (if applicable), or by wire transfer or transfer by any other means to an account
designated in writing by such Person to the Paying Agent at least 15 days prior to a relevant
payment date.

     Any interest in respect of this Definitive Registered Note of any series that is payable, but
is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the Holder hereof on the relevant Regular Record
Date by virtue of its having been such Holder; and such Defaulted Interest may be paid by the
Issuer, at its election in each case, as provided in Clause (1) or (2) below:

     (1) The Issuer may elect to make payment of such Defaulted Interest to the Person in whose
name such Definitive Registered Note is registered (or to the Holders of one or more Predecessor
Global Notes) at the close of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the manner provided for in the Indenture.

     (2) The Issuer may make payment of any Defaulted Interest on this Definitive Registered Note
in any other lawful manner not inconsistent with the requirements of any securities exchange on
which this Definitive Registered Note may be listed, and upon such notice as may be required by
such exchange, if, after notice given by the Issuer to the Trustee of the proposed payment pursuant
to this clause, such manner of payment shall be deemed practicable by the Trustee.

     All amounts of principal of and interest and related deferred payments on this Definitive
Registered Security will be paid by the Issuer, without deduction or withholding for, or on account
of, any and all present and future 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 any taxing 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 law by the Taxing Jurisdiction,
the Issuer will pay such additional amounts (“Additional Amounts”) as may be necessary in
order that the net amounts paid to the Holder of this Definitive Registered Security, after such
deduction or withholding, shall equal the respective amounts of principal and interest, which would
have been payable in respect of this Definitive Registered Security had no such deduction or
withholding been required; provided 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 of

2

 

or the owner of a beneficial interest in this Definitive Registered Security is a domiciliary,
national or resident of, or engaging in business or maintaining a permanent establishment or
physically present in the United Kingdom or any political subdivision thereof or therein or
otherwise has some connection or former connection with the United Kingdom or any political
subdivision thereof or therein other than the holding or ownership of the Definitive Registered
Security, or the collection of any payment of (or in respect of) principal of and interest and
related deferred payments on or the enforcement of, any Definitive Registered Security, (ii) the
Definitive Registered Security or other means of payment of interest or related deferred payment in
respect of this Definitive Registered Security is presented for payment in the United Kingdom,
(iii) the Definitive Registered Security or other means of payment of interest or related deferred
payment in respect of this Definitive Registered Security is presented 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 the same
for payment at the close of such 30 day period, (iv) such tax, levy, impost, duty, charge, fee,
deduction or withholding is imposed on any interest or related deferred payment to an individual
and is required to be made pursuant to European Council Directive 2003/48/EC or any other directive
implementing the conclusions of the ECOFIN Council meeting of 26-27 November 2000 on the taxation
of saving income, or any law implementing or complying with, or introduced in order to conform to,
such Directive, (v) presentation for payment of this Definitive Registered Security was made to a
paying agent who was required to make (or pass through) such deduction or withholding and
presentation for payment could have been made to a paying agent who was not required to make (or
pass through) such deduction or withholding, (vi) there was a failure to comply by the Holder or
the beneficial owner of this Global Note or the beneficial owner of any payment on this Global Note
with a request of the Issuer addressed to the Holder or the beneficial owner, including a request
of the Issuer related to a claim for relief under any applicable double tax treaty (x) to provide
information concerning the nationality, residence, identity or connection with a taxing
jurisdiction of the Holder or the beneficial owner or (y) to make any declaration or other similar
claim to satisfy any information or reporting requirement, if the information or declaration is
required or imposed by a statute, treaty, regulation, ruling or administrative practice of the
Taxing Jurisdiction as a precondition to exemption from withholding or deduction of all or part of
the tax, duty, assessment or other governmental charge, (vii) such tax, levy, impost, duty, charge,
fee, deduction or withholding is imposed in respect of any estate, inheritance, gift, sale,
transfer, personal property, wealth or similar tax, duty, assessment or other governmental charge
or (viii) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed in respect
of any combination of the above items.

     Whenever in this Definitive Registered Security there is mentioned, in any context, the
payment of any principal of or interest on this Definitive Registered Security, such mention shall
be deemed to include mention of the payment of Additional Amounts to the extent that, in such
context, Additional Amounts are, were or would be payable in respect thereof and express mention of
the payment of Additional Amounts (if applicable) in any provisions hereof shall not be construed
as excluding Additional Amounts in those provisions hereof where such express mention is not made.

     Reference is hereby made to the further provisions of this Definitive Registered Security set
forth on the reverse hereof, which further provisions shall for the purposes hereof have the same
effect as if set forth at this place.

3

 

     Unless the certificate of authentication hereon has been executed by the Trustee or an
authenticating agent by manual signature, this Definitive Registered Security shall be not be
entitled to any benefit under the Indenture or be valid or obligatory for any purposes.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	HSBC Holdings plc

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Dated:

4

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Debt Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

5

 

	 	 	 	 	 

REVERSE OF DEFINITIVE REGISTERED SECURITY

U.S.$487,913,000

7.625% SUBORDINATED NOTES

DUE MAY 17, 2032

     This Definitive Registered Security is one of a duly authorized issue of debt securities
(“Debt Securities”) issued and to be issued in one or more series under and governed by an
Indenture dated as of December 10, 2002, between the Issuer and The Bank of New York, as trustee
(the “Trustee”, which term includes any successor trustee under the Indenture), (the
“Base Indenture”), as supplemented by a Supplemental Indenture dated as of December 3,
2004, between the Issuer and the Trustee, (the “Supplemental Indenture”; and together with
the Base Indenture, the “Indenture”) to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Issuer, the Trustee, the Holders of the Debt Securities and
of the terms upon which the Debt Securities are, and are to be, authenticated and delivered.

     The rights of Holders of the Debt Securities will, in the event of the winding up of the
Issuer, to the extent more fully set out in the Indenture, be subordinated and subject in right of
payment to the prior payment in full of all claims of creditors of the Issuer except creditors in
respect of any liability of the Issuer however arising for the payment of money, the right to
payment of which by the Issuer by the terms thereof is, or is expressed to be, subordinated in the
event of a winding up of the Issuer to the claims of all or any of the creditors of the Issuer, and
creditors in respect of debt securities with no maturity issued pursuant to a separate indenture
between the Issuer and a trustee.

     Under the terms of the Indenture, the Debt Securities of any series (i) are redeemable, as a
whole but not in part, at the option of the Issuer, 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, if any, in respect of such Debt Securities to the date fixed for
redemption, if, at any time, the Issuer shall determine that (a) in making payment under such Debt
Securities in respect of principal or interest or related deferred payment it has or will or would
become obligated to pay Additional Amounts, provided such obligation to pay Additional Amounts
results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the
official application or interpretation of such laws (including a decision of any court or
tribunal), or any change in, or in the official application or interpretation of, or execution of,
or amendment to, any treaty or treaties affecting taxation to which the United Kingdom is a party,
which change, amendment or execution becomes effective on or after the original issuance of such
Debt Securities or (b) the payment of interest in respect of such Debt Securities has become or
will or would be treated as a “distribution” within the meaning of Section 209 of the Income and
Corporation Taxes Act 1988 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being), as a result of any change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws including a
decision of any court, which change or amendment becomes effective on or after the original
issuance of such Debt Securities of such series; provided, however, that in the case of (a) above,
no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the
Issuer would be obliged to pay Additional Amounts were a payment in respect of such Debt Securities
then due.

6

 

     If an Event of Default with respect to the Debt Securities of this series shall occur and be
continuing, the principal of all of the Debt Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. The Indenture provides that
in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such
series. If a Default with respect to Debt Securities of this series occurs and is continuing, the
Trustee may pursue certain remedies as set forth in the Indenture. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Debt Securities of this series may waive
any past event of default or any past default under the Indenture or the Debt Securities of this
series except a default in the payment of principal of on or any installment of interest or related
deferred payment on any of the Debt Securities of such series or in respect to a covenant or
provision which under the Indenture cannot be modified or amended without the consent of the Holder
of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt
Security and of any Debt Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt
Security or such other Debt Securities.

     The Indenture contains provisions permitting the Issuer and the Trustee (i) without the
consent of the Holders of any Debt Securities issued under the Indenture to execute one or more
supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure
the Debt Securities, and (ii) with the consent of the holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities
affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any
manner the rights of holders of Debt Securities under the Indenture; provided, that, with respect
to certain enumerated provisions, no such supplemental indenture may be entered into without the
consent of the holder of each Outstanding Debt Security affected thereby. The Indenture also
permits the holders of at least a majority in aggregate principal amount of the Outstanding Debt
Securities of each series to be affected, on behalf of the Holders of all Debt Securities of such
series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture.
Any such consent or waiver by the Holder of this Definitive Registered Security shall bind every
future Holder of this Definitive Registered Security and of any Definitive Registered Security
issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether
or not notation of such consent or waiver is made upon this Definitive Registered Security or such
other Global Securities.

     The Depositary may surrender this Definitive Registered Security or any portion hereof in
exchange, in whole or in part, for definitive Debt Securities, of this series in registered form
and the Registrar, acting on behalf of the Issuer, shall authenticate and deliver in exchange for
this Definitive Registered Security or the portions thereof to be exchanged, an equal aggregate
face amount of definitive Debt Securities (duly countersigned) in the numbers and in the names
advised by the Depositary.

     The Indenture and the Debt Securities may be amended and modified as provided in the
Indenture.

     All terms used in this Debt Security and not otherwise defined shall have the meanings
ascribed to them in the Indenture.

7

 

     The Indenture and the Debt Securities and the rights and duties of the Trustee shall be
governed by and construed in accordance with the law of the State of New York, except that matters
relating to the subordination provisions contained in Article Twelve of the Base Indenture and in
the Debt Securities and the authorization and execution by the Issuer of the Indenture and the Debt
Securities shall be governed by English law.

8

 

TRANSFER NOTICE

     FOR VALUE RECEIVED the undersigned registered Holder hereby sell(s), assign(s) and transfer(s)
unto

 

(Insert transferee’s social security or tax ID number)

 

 

 

(Print or type transferee’s name, address and zip code)

and irrevocably appoint

 

agent to transfer this Note on the books of the Company. The agent may substitute another to act

for him.

 

	 	 	 	 	 	 	 
	Date:

	 	 

	 	Signature:
	 	 

	 	 	 	 	(Sign exactly as your name appears on the other side of this Note)

	 	 	 
	Signature Guarantee:

	 	 

9

 

EXHIBIT D

FORM OF UNRESTRICTED GLOBAL NOTE

HSBC Holdings plc

U.S.$487,913,000

7.625% SUBORDINATED NOTES

DUE MAY 17, 2032

	 	 	 
	CUSIP Number:  

	 	404280AF6
	ISIN:  

	 	US404280AF65

     This is a Global Note in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer”, which term includes any successor Person under the 7.625% Indenture hereinafter
referred to) of debt securities, designated as specified in the title hereof, in the aggregate face
amount of up to U.S.$487,913,000.

     The Issuer, for value received, hereby promises to pay the Holder of this Global Note on
November 17, 2032 or on such earlier date as this Global Note may be redeemed (“Maturity”),
the principal amount hereof and to pay interest on the said principal amount from November 17, 2004
or the most recent Interest Payment Date on which interest has been paid or duly provided for,
semi-annually in arrears on May 17 and November 17 in each year (each such date, an “Interest
Payment Date”), commencing May 17, 2005, at the rate of 7.625% per annum, until the principal
amount hereof is paid or made available for payment; provided that, if the Issuer
does not pay any installment of interest on the pertinent Interest Payment Date or all or any part
of principal at Maturity, the obligation to make such payment and such Interest Payment Date or
Maturity, as the case may be, shall be deferred until (i) in the case of a payment of interest, the
date upon which a dividend is paid on any class of share capital of the Issuer and (ii) in the case
of a payment of principal, the first Business Day after the date that falls six months after the
original Maturity. Failure by the Issuer to make any such payment prior to such deferred Interest
Payment Date or Maturity shall not constitute a default by the Issuer or otherwise allow any Holder
to sue the Issuer for such payment or to take any other action. Each payment so deferred will
accrue interest at the rate of 7.625% per annum. Any payment so deferred 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 Interest Payment Date or Maturity as the case may be.

     Payment of interest in respect of this Global Note may be made by check, or by wire transfer
or transfer by any other means to an account designated in writing by the Holder of this Global
Note to the Paying Agent.

     All amounts of principal of and interest and related deferred payments on this Global Note
will be paid by the Issuer, without deduction or withholding for, or on account of, any and all
present and future 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 any taxing 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 law

 

 

by the Taxing Jurisdiction, the Issuer will pay such additional amounts (“Additional
Amounts”) as may be necessary in order that the net amounts paid to the Holder of this Global
Note, after such deduction or withholding, shall equal the respective amounts of principal and
interest, which would have been payable in respect of this Global Note had no such deduction or
withholding been required; provided 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 of or the owner of a beneficial interest in this Global Note is a
domiciliary, national or resident of, or engaging in business or maintaining a permanent
establishment or physically present in the United Kingdom or any political subdivision thereof or
therein or otherwise has some connection or former connection with the United Kingdom or any
political subdivision thereof or therein other than the holding or ownership of the Global Note, or
the collection of any payment of (or in respect of) principal of and interest and related deferred
payments on or the enforcement of, any Global Note, (ii) the Global Note or other means of payment
of interest or related deferred payment in respect of this Global Note is presented for payment in
the United Kingdom, (iii) the Global Note or other means of payment of interest or related deferred
payment in respect of this Global Note is presented 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 the same for payment at the close
of such 30 day period, (iv) such tax, levy, impost, duty, charge, fee, deduction or withholding is
imposed on any interest or related deferred payment to an individual and is required to be made
pursuant to European Council Directive 2003/48/EC or any other directive implementing the
conclusions of the ECOFIN Council meeting of 26-27 November 2000 on the taxation of saving income,
or any law implementing or complying with, or introduced in order to conform to, such Directive,
(v) presentation for payment of this Global Note was made to a paying agent who was required to
make (or pass through) such deduction or withholding and presentation for payment could have been
made to a paying agent who was not required to make (or pass through) such deduction or
withholding, (vi) there was a failure to comply by the Holder or the beneficial owner of this
Global Note or the beneficial owner of any payment on this Global Note with a request of the Issuer
addressed to the Holder or the beneficial owner, including a request of the Issuer related to a
claim for relief under any applicable double tax treaty (x) to provide information concerning the
nationality, residence, identity or connection with a taxing jurisdiction of the Holder or the
beneficial owner or (y) to make any declaration or other similar claim to satisfy any information
or reporting requirement, if the information or declaration is required or imposed by a statute,
treaty, regulation, ruling or administrative practice of the Taxing Jurisdiction as a precondition
to exemption from withholding or deduction of all or part of the tax, duty, assessment or other
governmental charge, (vii) such tax, levy, impost, duty, charge, fee, deduction or withholding is
imposed in respect of any estate, inheritance, gift, sale, transfer, personal property, wealth or
similar tax, duty, assessment or other governmental charge or (viii) such tax, levy, impost, duty,
charge, fee, deduction or withholding is imposed in respect of any combination of the above items.

     Whenever in this Global Note there is mentioned, in any context, the payment of any principal
of or interest on this Global Note, such mention shall be deemed to include mention of the payment
of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof and express mention of the payment of Additional Amounts (if applicable)
in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made.

2

 

     Upon any exchange of a part of this Global Note for Definitive Registered Securities, the
portion of the principal amount hereof so exchanged shall be endorsed by the Book-Entry Depositary
on the Schedule hereto. The principal amount hereof shall be reduced for all purposes by the
amount so exchanged.

     Reference is hereby made to the further provisions of this Global Note set forth on the
reverse hereof, which further provisions shall for the purposes hereof have the same effect as if
set forth at this place.

     Unless the certificate of authentication hereon has been executed by the Trustee or an
authenticating agent by manual signature, this Global Note shall be not be entitled to any benefit
under the Indenture or be valid or obligatory for any purposes.

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	HSBC Holdings plc

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Dated:

3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Debt Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York

   as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

4

 

	 	 	 	 	 

REVERSE OF UNRESTRICTED GLOBAL NOTE

U.S.$487,913,000

7.625% SUBORDINATED NOTES

DUE MAY 17, 2032

     This Global Note is one of a duly authorized issue of debt securities (“Debt
Securities”) issued and to be issued in one or more series under and governed by an Indenture
dated as of December 10, 2002, between the Issuer and The Bank of New York, as trustee (the
“Trustee”, which term includes any successor trustee under the Indenture), (the “Base
Indenture”), as supplemented by a Supplemental Indenture dated as of December 3, 2004, between
the Issuer and the Trustee, (the “Supplemental Indenture”; and together with the Base
Indenture, the “Indenture”) to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Issuer, the Trustee, the Holders of the Debt Securities and of the
terms upon which the Debt Securities are, and are to be, authenticated and delivered.

     The rights of Holders of the Debt Securities will, in the event of the winding up of the
Issuer, to the extent more fully set out in the Indenture, be subordinated and subject in right of
payment to the prior payment in full of all claims of creditors of the Issuer except creditors in
respect of any liability of the Issuer however arising for the payment of money, the right to
payment of which by the Issuer by the terms thereof is, or is expressed to be, subordinated in the
event of a winding up of the Issuer to the claims of all or any of the creditors of the Issuer, and
creditors in respect of debt securities with no maturity issued pursuant to a separate indenture
between the Issuer and a trustee.

     Under the terms of the Indenture, the Debt Securities of any series (i) are redeemable, as a
whole but not in part, at the option of the Issuer, 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, if any, in respect of such Debt Securities to the date fixed for
redemption, if, at any time, the Issuer shall determine that (a) in making payment under such Debt
Securities in respect of principal or interest or related deferred payment it has or will or would
become obligated to pay Additional Amounts, provided such obligation to pay Additional Amounts
results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the
official application or interpretation of such laws (including a decision of any court or
tribunal), or any change in, or in the official application or interpretation of, or execution of,
or amendment to, any treaty or treaties affecting taxation to which the United Kingdom is a party,
which change, amendment or execution becomes effective on or after the original issuance of such
Debt Securities or (b) the payment of interest in respect of such Debt Securities has become or
will or would be treated as a “distribution” within the meaning of Section 209 of the Income and
Corporation Taxes Act 1988 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being), as a result of any change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws including a
decision of any court, which change or amendment becomes effective on or after the original
issuance of such Debt Securities of such series; provided, however, that in the case of (a) above,
no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the
Issuer would be obliged to pay Additional Amounts were a payment in respect of such Debt Securities
then due.

5

 

     If an Event of Default with respect to the Debt Securities of this series shall occur and be
continuing, the principal of all of the Debt Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. The Indenture provides that
in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such
series. If a Default with respect to Debt Securities of this series occurs and is continuing, the
Trustee may pursue certain remedies as set forth in the Indenture. The Holders of not less than a
majority in aggregate principal amount of the Outstanding Debt Securities of this series may waive
any past event of default or any past default under the Indenture or the Debt Securities of this
series except a default in the payment of principal of on or any installment of interest or related
deferred payment on any of the Debt Securities of such series or in respect to a covenant or
provision which under the Indenture cannot be modified or amended without the consent of the Holder
of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt
Security and of any Debt Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt
Security or such other Debt Securities.

     The Indenture contains provisions permitting the Issuer and the Trustee (i) without the
consent of the Holders of any Debt Securities issued under the Indenture to execute one or more
supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure
the Debt Securities, and (ii) with the consent of the holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities
affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any
manner the rights of holders of Debt Securities under the Indenture; provided, that, with respect
to certain enumerated provisions, no such supplemental indenture may be entered into without the
consent of the holder of each Outstanding Debt Security affected thereby. The Indenture also
permits the holders of at least a majority in aggregate principal amount of the Outstanding Debt
Securities of each series to be affected, on behalf of the Holders of all Debt Securities of such
series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture.
Any such consent or waiver by the Holder of this Global Note shall bind every future Holder of this
Global Note and of any Global Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Global Note or such other Global Securities.

     The Depositary may surrender this Global Note or any portion hereof in exchange, in whole or
in part, for definitive Debt Securities, of this series in registered form and the Registrar,
acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Note or
the portions thereof to be exchanged, an equal aggregate face amount of definitive Debt Securities
(duly countersigned) in the numbers and in the names advised by the Depositary.

     The Indenture and the Debt Securities may be amended and modified as provided in the
Indenture.

     All terms used in this Debt Security and not otherwise defined shall have the meanings
ascribed to them in the Indenture.

6

 

     The Indenture and the Debt Securities and the rights and duties of the Trustee shall be
governed by and construed in accordance with the law of the State of New York, except that matters
relating to the subordination provisions contained in Article Twelve of the Base Indenture and in
the Debt Securities and the authorization and execution by the Issuer of the Indenture and the Debt
Securities shall be governed by English law.

7

 

SCHEDULE OF PRINCIPAL AMOUNT OF INDEBTEDNESS

EVIDENCED BY THIS NOTE

The initial principal amount of indebtedness evidenced by this Note shall be $_______. The following decreases/increases in the principal amount evidenced by this Note
have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Principal	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of this	 	 	Notation Made	 
	 	 	Decrease in	 	 	Increase in	 	 	Global Note	 	 	by or on	 
	 	 	Principal Amount of	 	 	Principal Amount of	 	 	Following such	 	 	Behalf of	 
	Date of Decrease/Increase	 	this Global Note	 	 	this Global Note	 	 	Decrease/Increase	 	 	Trustee	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

8

 

EXHIBIT E

FORM OF CERTIFICATE TO BE DELIVERED IN

CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S

[The Bank of New York

101 Barclay Street

Floor 21 West

New York, New York 10286

Attention: Corporate Trust Administration]

Re: HSBC Holdings plc (the “Company”)

7.625 % Subordinated Notes due 2032 (the “Notes”)

     Ladies and Gentlemen:

     In connection with our proposed sale of $_______ principal amount of the Notes, we
confirm that such sale has been effected pursuant to and in accordance with Regulation S under the
U.S. Securities Act of 1933 and, accordingly, we represent that:

     (1) the offer of the Notes was not made to a person in the United States;

     (2) at the time the buy order was originated, the transferee was outside the United States or we
and any person acting on our behalf reasonably believed that the transferee was outside the United
States;

     (3) no directed selling efforts have been made by us in the United States in contravention of the
requirements of Rule 903 or Rule 904 of Regulation S, as applicable;

     (4) the transaction is not part of a plan or scheme to evade the registration requirements of the
U.S. Securities Act of 1933.

     You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

[Name of Transferor]

 	 
	 	By  	 	 
	 	 	Authorized Signature

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