Document:

EXHIBIT 4.3
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NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                                 MATRITECH, INC.

         THIS COMMON STOCK PURCHASE WARRANT (the "Warrant") CERTIFIES that, for
value received, _____________ (the "Holder"), is entitled, upon the terms and
subject to the limitations on exercise and the conditions hereinafter set forth,
at any time on or after March 19, 2004 (the "Initial Exercise Date") and on or
prior to the close of business on the fifth anniversary of the Initial Exercise
Date (the "Termination Date") but not thereafter, to subscribe for and purchase
from Matritech, Inc., a corporation incorporated in the State of Delaware (the
"Company"), up to ____________ shares (the "Warrant Shares") of Common Stock,
par value $0.01 per share, of the Company (the "Common Stock"). The purchase
price of one share of Common Stock (the "Exercise Price") under this Warrant
shall be $2.00, subject to adjustment hereunder. The Exercise Price and the
number of Warrant Shares for which the Warrant is exercisable shall be subject
to adjustment as provided herein. CAPITALIZED TERMS USED AND NOT OTHERWISE
DEFINED HEREIN SHALL HAVE THE MEANINGS SET FORTH IN THAT CERTAIN SECURITIES
PURCHASE AGREEMENT (THE "PURCHASE AGREEMENT"), DATED MARCH 19, 2004, BETWEEN THE
COMPANY AND THE PURCHASERS SIGNATORY THERETO.

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         1. Title to Warrant. Prior to the Termination Date and subject to
compliance with applicable laws and Section 7 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form annexed hereto
properly endorsed; provided, however, during any 12 month period and except for
transfers to an Affiliate of the Holder, the Holder, collectively with successor
Holders, may not transfer this Warrant in more than two transactions to more
than four assignees per transaction. The transferee shall sign an investment
letter in form and substance reasonably satisfactory to the Company.

         2. Authorization of Shares. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant and in accordance with the terms hereof, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
in respect of the issue thereof imposed by the Company other than restrictions
on transfer provided for in the Transaction Documents.

         3. Exercise of Warrant.

                  (a) Except as provided in Section 4 herein, exercise of the
         purchase rights represented by this Warrant may be made at any time or
         times on or after the Initial Exercise Date and on or before the
         Termination Date by the surrender of this Warrant and the Notice of
         Exercise Form annexed hereto duly executed, at the office of the
         Company (or such other office or agency of the Company as it may
         designate by notice in writing to the registered Holder at the address
         of such Holder appearing on the books of the Company) and upon payment
         of the Exercise Price of the shares thereby purchased by wire transfer
         or cashier's check drawn on a United States bank or by means of a
         cashless exercise pursuant to Section 3(d), the Holder shall be
         entitled to receive a certificate for the number of Warrant Shares so
         purchased. Certificates for shares purchased hereunder shall be
         delivered to the Holder within five (5) Trading Days after the date on
         which this Warrant shall have been exercised as aforesaid. This Warrant
         shall be deemed to have been exercised and such certificate or
         certificates shall be deemed to have been issued, and Holder or any
         other person so designated to be named therein shall be deemed to have
         become a holder of record of such shares for all purposes, as of the
         date the Warrant has been exercised by payment to the Company of the
         Exercise Price and all taxes required to be paid by the Holder, if any,
         pursuant to Section 5 prior to the issuance of such shares, have been
         paid. If the Company fails to deliver to the Holder a certificate or
         certificates representing the Warrant Shares pursuant to this Section
         3(a) by the fifth Trading Day after the date of exercise, then the
         Holder will have the right to rescind such exercise. In addition to any
         other rights available to the Holder, if the Company fails to deliver
         to the Holder a certificate or certificates representing the Warrant
         Shares pursuant to an exercise by the fifth Trading Day after the date
         of exercise and the Holder has not rescinded such exercise pursuant to
         this Section 3(a), and if after such fifth Trading Day the Holder is
         required by its broker to purchase (in an open market transaction or
         otherwise) shares of Common Stock to deliver in satisfaction of a sale
         by the Holder of

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         the Warrant Shares which the Holder anticipated receiving upon such
         exercise (a "Buy-In"), then the Company shall (1) pay in cash to the
         Holder the amount by which (x) the Holder's total purchase price
         (including brokerage commissions, if any) for the shares of Common
         Stock so purchased exceeds (y) the amount obtained by multiplying (A)
         the number of Warrant Shares that the Company was required to deliver
         to the Holder in connection with the exercise at issue times (B) the
         price at which the sell order giving rise to such purchase obligation
         was executed, and (2) at the option of the Holder, either reinstate the
         portion of the Warrant and equivalent number of Warrant Shares for
         which such exercise was not honored or deliver to the Holder the number
         of shares of Common Stock that would have been issued had the Company
         timely complied with its exercise and delivery obligations hereunder.
         For example, if the Holder purchases Common Stock having a total
         purchase price of $11,000 to cover a Buy-In with respect to an
         attempted exercise of shares of Common Stock with an aggregate sale
         price giving rise to such purchase obligation of $10,000, under clause
         (1) of the immediately preceding sentence the Company shall be required
         to pay the Holder $1,000. The Holder shall provide the Company written
         notice indicating the amounts payable to the Holder in respect of the
         Buy-In, together with applicable confirmations and other evidence
         reasonably requested by the Company. Nothing herein shall limit a
         Holder's right to pursue any other remedies available to it hereunder,
         at law or in equity including, without limitation, a decree of specific
         performance and/or injunctive relief with respect to the Company's
         failure to timely deliver certificates representing shares of Common
         Stock upon exercise of the Warrant as required pursuant to the terms
         hereof.

                  (b) If this Warrant shall have been exercised in part, the
         Company shall, at the time of delivery of the certificate or
         certificates representing Warrant Shares, deliver to Holder a new
         Warrant evidencing the rights of Holder to purchase the unpurchased
         Warrant Shares called for by this Warrant, which new Warrant shall in
         all other respects be identical with this Warrant.

                  (c) The Company shall not effect any exercise of this Warrant,
         and the Holder shall not have the right to exercise any portion of this
         Warrant, pursuant to Section 3(a) or otherwise, to the extent that
         after giving effect to such issuance after exercise, the Holder
         (together with the Holder's affiliates), as set forth on the applicable
         Notice of Exercise, would beneficially own in excess of 4.99% of the
         number of shares of the Common Stock outstanding immediately after
         giving effect to such issuance. For purposes of the foregoing sentence,
         the number of shares of Common Stock beneficially owned by the Holder
         and its affiliates shall include the number of shares of Common Stock
         issuable upon exercise of this Warrant with respect to which the
         determination of such sentence is being made, but shall exclude the
         number of shares of Common Stock which would be issuable upon (A)
         exercise of the remaining, nonexercised portion of this Warrant
         beneficially owned by the Holder or any of its affiliates and (B)
         exercise or conversion of the unexercised or nonconverted portion of
         any other securities of the Company (including, without limitation, any
         other Warrants) subject to a limitation on conversion or exercise
         analogous to the limitation contained herein beneficially owned by the
         Holder or any of its affiliates. Except as set forth in the preceding
         sentence, for purposes of this Section 3(c), beneficial ownership shall
         be calculated in accordance with Section 13(d) of the Exchange Act. To
         the extent that the limitation contained in this

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         Section 3(c) applies, the determination of whether this Warrant is
         exercisable (in relation to other securities owned by the Holder) and
         of which a portion of this Warrant is exercisable shall be in the sole
         discretion of such Holder, and the submission of a Notice of Exercise
         shall be deemed to be such Holder's determination of whether this
         Warrant is exercisable (in relation to other securities owned by such
         Holder) and of which portion of this Warrant is exercisable, in each
         case subject to such aggregate percentage limitation, and the Company
         shall have no obligation to verify or confirm the accuracy of such
         determination. For purposes of this Section 3(c), in determining the
         number of outstanding shares of Common Stock, the Holder may rely on
         the number of outstanding shares of Common Stock as reflected in (x)
         the Company's most recent Form 10-Q or Form 10-K, as the case may be,
         (y) a more recent public announcement by the Company or (z) any other
         notice by the Company or the Company's Transfer Agent setting forth the
         number of shares of Common Stock outstanding. Upon the written or oral
         request of the Holder, the Company shall within two Trading Days
         confirm orally and in writing to the Holder the number of shares of
         Common Stock then outstanding. In any case, the number of outstanding
         shares of Common Stock shall be determined after giving effect to the
         conversion or exercise of securities of the Company, including this
         Warrant, by the Holder or its affiliates since the date as of which
         such number of outstanding shares of Common Stock was reported. The
         provisions of this Section 3(c) may be waived by the Holder upon, at
         the election of the Holder, not less than 61 days' prior notice to the
         Company, and the provisions of this Section 3(c) shall continue to
         apply until such 61st day (or such later date, as determined by the
         Holder, as may be specified in such notice of waiver).

                  (d) If at any time after one year from the date of issuance of
         this Warrant there is no effective Registration Statement registering
         the resale of the Warrant Shares by the Holder, this Warrant may also
         be exercised at such time by means of a "cashless exercise" in which
         the Holder shall be entitled to receive a certificate for the number of
         Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)]
         by (A), where:

         (A) = the VWAP on the Trading Day immediately preceding the date of
               such election;

         (B) = the Exercise Price of the Warrants, as adjusted; and

         (X) = the number of Warrant Shares issuable upon exercise of the
               Warrants in accordance with the terms of this Warrant.

         4. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

         5. Charges, Taxes and Expenses. Issuance of certificates for Warrant
Shares shall be made without charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate, all
of which taxes and expenses shall be

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paid by the Company, and such certificates shall be issued in the name of the
Holder or in such name or names as may be directed by the Holder; provided,
however, that in the event certificates for Warrant Shares are to be issued in a
name other than the name of the Holder, this Warrant when surrendered for
exercise shall be accompanied by the Assignment Form attached hereto duly
executed by the Holder; and the Company may require, as a condition thereto, the
payment of a sum sufficient to reimburse it for any transfer tax incidental
thereto.

         6. Closing of Books. The Company will not close its stockholder books
or records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

         7. Transfer, Division and Combination.

               (a) Subject to compliance with any applicable securities laws and
     the conditions set forth in Sections 1 and 7(f) hereof and to the
     provisions of Section 4.1 of the Purchase Agreement, this Warrant and all
     rights hereunder are transferable, in whole or in part, upon surrender of
     this Warrant at the principal office of the Company, together with a
     written assignment of this Warrant substantially in the form attached
     hereto duly executed by the Holder or its agent or attorney and funds
     sufficient to pay any transfer taxes payable upon the making of such
     transfer. Upon such surrender and, if required, such payment, the Company
     shall execute and deliver a new Warrant or Warrants in the name of the
     assignee or assignees and in the denomination or denominations specified in
     such instrument of assignment, and shall issue to the assignor a new
     Warrant evidencing the portion of this Warrant not so assigned, and this
     Warrant shall promptly be cancelled. A Warrant, if properly assigned, may
     be exercised by a new holder for the purchase of Warrant Shares without
     having a new Warrant issued.

               (b) This Warrant may be divided or combined with other Warrants
     upon presentation hereof at the aforesaid office of the Company, together
     with a written notice specifying the names and denominations in which new
     Warrants are to be issued, signed by the Holder or its agent or attorney.
     Subject to compliance with Section 7(a), as to any transfer which may be
     involved in such division or combination, the Company shall execute and
     deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
     to be divided or combined in accordance with such notice.

               (c) The Company shall prepare, issue and deliver at its own
     expense (other than transfer taxes) the new Warrant or Warrants under this
     Section 7.

               (d) The Company agrees to maintain, at its aforesaid office,
     books for the registration and the registration of transfer of the
     Warrants.

               (e) If, at the time of the surrender of this Warrant in
     connection with any transfer of this Warrant, the transfer of this Warrant
     shall not be registered pursuant to an effective registration statement
     under the Securities Act and under applicable state securities or blue sky
     laws, the Company may require, as a condition of allowing such transfer (i)
     that the Holder or transferee of this Warrant, as the case may be, furnish
     to the Company a written opinion of counsel (which opinion shall be in
     form, substance and

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     scope customary for opinions of counsel in comparable transactions) to the
     effect that such transfer may be made without registration under the
     Securities Act and under applicable state securities or blue sky laws, (ii)
     that the holder or transferee execute and deliver to the Company an
     investment letter in form and substance acceptable to the Company and (iii)
     that the transferee be an "accredited investor" as defined in Rule
     501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated under the
     Securities Act or a qualified institutional buyer as defined in Rule
     144A(a) under the Securities Act.

         8. No Rights as Shareholder until Exercise. This Warrant does not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price (or by means of a cashless exercise
pursuant to Section 3(d)), the Warrant Shares so purchased shall be and be
deemed to be issued to such Holder as the record owner of such shares as of the
close of business on the later of the date of such surrender or payment.

         9. Loss, Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, in
the case of the Warrant, shall not include the posting of any bond), and upon
surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate.

         10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for
the taking of any action or the expiration of any right required or granted
herein shall be a Saturday, Sunday or a legal holiday, then such action may be
taken or such right may be exercised on the next succeeding day not a Saturday,
Sunday or legal holiday.

         11. Adjustments of Exercise Price and Number of Warrant Shares. The
number and kind of securities purchasable upon the exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time upon the
happening of any of the following. In case the Company shall (i) pay a dividend
in shares of Common Stock or make a distribution in shares of Common Stock to
holders of its outstanding Common Stock, (ii) subdivide its outstanding shares
of Common Stock into a greater number of shares, (iii) combine its outstanding
shares of Common Stock into a smaller number of shares of Common Stock, or (iv)
issue any shares of its capital stock in a reclassification of the Common Stock,
then the number of Warrant Shares purchasable upon exercise of this Warrant
immediately prior thereto shall be adjusted so that the Holder shall be entitled
to receive the kind and number of Warrant Shares or other securities of the
Company which it would have owned or have been entitled to receive had such
Warrant been exercised in advance thereof. Upon each such adjustment of the kind
and number of Warrant Shares or other securities of the Company which are
purchasable hereunder, the Holder shall thereafter be entitled to purchase the
number of Warrant Shares or other securities resulting from such adjustment at
an Exercise Price per Warrant Share or other security obtained by multiplying
the Exercise Price in effect immediately prior to such adjustment by the number
of Warrant Shares resulting from such adjustment and dividing by the number of
Warrant Shares or other securities of the Company resulting from such
adjustment. An adjustment made pursuant to

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this paragraph shall become effective immediately after the effective date of
such event retroactive to the record date, if any, for such event.

         12. Reorganization, Reclassification, Merger, Consolidation or
Disposition of Assets. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of all or substantially all its property,
assets or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("Other
Property"), are to be received by or distributed to the holders of Common Stock
of the Company, then the Holder shall have the right thereafter to receive upon
exercise of this Warrant, the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and Other Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event. In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall expressly assume the
due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Company and all
the obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board of
Directors of the Company) in order to provide for adjustments of Warrant Shares
for which this Warrant is exercisable which shall be as nearly equivalent as
practicable to the adjustments provided for in this Section 12. For purposes of
this Section 12, "common stock of the successor or acquiring corporation" shall
include stock of such corporation of any class which is not preferred as to
dividends or assets over any other class of stock of such corporation and which
is not subject to redemption and shall also include any evidences of
indebtedness, shares of stock or other securities which are convertible into or
exchangeable for any such stock, either immediately or upon the arrival of a
specified date or the happening of a specified event and any warrants or other
rights to subscribe for or purchase any such stock. The foregoing provisions of
this Section 12 shall similarly apply to successive reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

         13. Voluntary Adjustment by the Company. The Company may at any time
during the term of this Warrant reduce the then current Exercise Price to any
amount and for any period of time deemed appropriate by the Board of Directors
of the Company.

         14. Notice of Adjustment. Whenever the number of Warrant Shares or
number or kind of securities or other property purchasable upon the exercise of
this Warrant or the Exercise Price is adjusted, as herein provided, the Company
shall give notice thereof to the Holder, which notice shall state the number of
Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other

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securities or property) after such adjustment, setting forth a brief statement
of the facts requiring such adjustment and setting forth the computation by
which such adjustment was made.

         15. Notice of Corporate Action. If at any time:

     (a) the Company shall take a record of the holders of its Common Stock for
     the purpose of entitling them to receive a dividend or other distribution,
     or any right to subscribe for or purchase any evidences of its
     indebtedness, any shares of stock of any class or any other securities or
     property, or to receive any other right, or

     (b) there shall be any capital reorganization of the Company, any
     reclassification or recapitalization of the capital stock of the Company or
     any consolidation or merger of the Company with, or any sale, transfer or
     other disposition of all or substantially all the property, assets or
     business of the Company to, another corporation or,

     (c) there shall be a voluntary or involuntary dissolution, liquidation or
     winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 10 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 10
days' prior written notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause also shall specify (i) the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding up. Each
such written notice shall be sufficiently given if addressed to Holder at the
last address of Holder appearing on the books of the Company and delivered in
accordance with Section 17(d).

         16. Authorized Shares. The Company covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such
Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Trading Market upon
which the Common Stock may be listed.

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         Except and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation, amending its
certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder as set forth in this
Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (c) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

         17. Miscellaneous.

               (a) Jurisdiction. This Warrant shall constitute a contract under
     the laws of New York, without regard to its conflict of law, principles or
     rules.

               (b) Restrictions. The Holder acknowledges that the Warrant Shares
     acquired upon the exercise of this Warrant, if not registered, will have
     restrictions upon resale imposed by state and federal securities laws.

               (c) Nonwaiver and Expenses. No course of dealing or any delay or
     failure to exercise any right hereunder on the part of Holder shall operate
     as a waiver of such right or otherwise prejudice Holder's rights, powers or
     remedies, notwithstanding all rights hereunder terminate on the Termination
     Date. If the Company willfully and knowingly fails to comply with any
     provision of this Warrant, which results in any material damages to the
     Holder, the Company shall pay to Holder such amounts as shall be sufficient
     to cover any costs and expenses including, but not limited to, reasonable
     attorneys' fees, including those of appellate proceedings, incurred by
     Holder in collecting any amounts due pursuant hereto or in otherwise
     enforcing any of its rights, powers or remedies hereunder.

               (d) Notices. Any notice, request or other document required or
     permitted to be given or delivered to the Holder by the Company shall be
     delivered in accordance with the notice provisions of the Purchase
     Agreement.

               (e) Limitation of Liability. No provision hereof, in the absence
     of any affirmative action by Holder to exercise this Warrant or purchase
     Warrant Shares, and no enumeration herein of the rights or privileges of
     Holder, shall give rise to any liability of Holder for the purchase price
     of any Common Stock or as a stockholder of the Company, whether such
     liability is asserted by the Company or by creditors of the Company.

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               (f) Remedies. Holder, in addition to being entitled to exercise
     all rights granted by law, including recovery of damages, will be entitled
     to specific performance of its rights under this Warrant. The Company
     agrees that monetary damages would not be adequate compensation for any
     loss incurred by reason of a breach by it of the provisions of this Warrant
     and hereby agrees to waive the defense in any action for specific
     performance that a remedy at law would be adequate.

               (g) Successors and Assigns. Subject to applicable securities
     laws, this Warrant and the rights and obligations evidenced hereby shall
     inure to the benefit of and be binding upon the successors of the Company
     and the successors and permitted assigns of Holder. The provisions of this
     Warrant are intended to be for the benefit of all Holders from time to time
     of this Warrant and shall be enforceable by any such Holder or holder of
     Warrant Shares.

               (h) Amendment. This Warrant may be modified or amended or the
     provisions hereof waived with the written consent of the Company and the
     Holder.

               (i) Severability. Wherever possible, each provision of this
     Warrant shall be interpreted in such manner as to be effective and valid
     under applicable law, but if any provision of this Warrant shall be
     prohibited by or invalid under applicable law, such provision shall be
     ineffective to the extent of such prohibition or invalidity, without
     invalidating the remainder of such provisions or the remaining provisions
     of this Warrant.

               (j) Headings. The headings used in this Warrant are for the
     convenience of reference only and shall not, for any purpose, be deemed a
     part of this Warrant.

                              ********************

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         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized.

Dated:  March __, 2004
                                             MATRITECH, INC.

                                            By:
                                               ---------------------------------
                                               Name:  Stephen D. Chubb
                                               Title:  Chief Executive Officer

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                               NOTICE OF EXERCISE

To:      Matritech, Inc.

         (1) The undersigned hereby elects to purchase ________ Warrant Shares
of Matritech, Inc. pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

         (2) Payment shall take the form of (check applicable box):

             [ ] in lawful money of the United States; or

             [ ] the cancellation of such number of Warrant Shares as is
                 necessary, in accordance with the formula set forth in
                 subsection 3(d), to exercise this Warrant with respect to the
                 maximum number of Warrant Shares purchasable pursuant to the
                 cashless exercise procedure set forth in subsection 3(d).

         (3) Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is
specified below:

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

The Warrant Shares shall be delivered to the following:

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

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

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

         (4) Accredited Investor/Qualified Institutional Buyer. The undersigned
is either: (i) an "accredited investor" as defined in Rule 501(a)(1), (a)(2),
(a)(3), (a)(7) or (a)(8) under the Securities Act of 1933, as amended (the
"Securities Act") or (ii) a qualified institutional buyer as defined in Rule
144(A)(a) under the Securities Act.

                                       [PURCHASER]

                                       By: ____________________________________
                                           Name:
                                           Title:

                                       Dated:  ________________________________

                                       12
<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

         FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

_______________________________________________ whose address is

_______________________________________________________________.

_______________________________________________________________

                                         Dated:  ______________, _______

                  Holder's Signature: _____________________________

                  Holder's Address: _______________________________

                                    _______________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

                                       13Exhibit 4.7

 

EXECUTION COPY

 

FOURTH ISSUER TRUST
DEED

 

 

DATED 12th March, 2004 

 

 

PERMANENT
FINANCING (NO. 4) PLC

 

and

 

THE BANK OF
NEW YORK

 

constituting

 

 

U.S.$1,500,000,000 Series 1 Class A Asset Backed
Floating Rate Notes due March 2005

U.S.$78,100,000 Series 1 Class B Asset Backed Floating
Rate Notes due June 2042

U.S.$56,500,000 Series 1 Class M Asset Backed Floating
Rate Notes due June 2042

U.S.$2,400,000,000 Series 2 Class A Asset Backed
Floating Rate Notes due March 2009

U.S.$100,700,000 Series 2 Class B Asset Backed
Floating Rate Notes due June 2042

U.S.$59,900,000 Series 2 Class M Asset Backed Floating
Rate Notes due June 2042

U.S.$82,200,000 Series 2 Class C Asset Backed Floating
Rate Notes due June 2042

U.S.$1,700,000,000 Series 3 Class A Asset Backed
Floating Rate Notes due March 2024

U.S.$75,800,000 Series 3 Class B Asset Backed Floating
Rate Notes due June 2042

U.S.$40,400,000 Series 3 Class M Asset Backed Floating
Rate Notes due June 2042

U.S.$55,400,000 Series 3 Class C Asset Backed Floating
Rate Notes due June 2042

€1,500,000,000 Series 4 Class A Asset Backed Floating
Rate Notes due June 2034

€85,000,000 Series 4 Class B Asset Backed Floating
Rate Notes due June 2042

€62,500,000 Series 4 Class M Asset Backed Floating
Rate Notes due June 2042

€750,000,000 Series 5 Class A1 Asset Backed Floating
Rate Notes due June 2042

££1,100,000,000 Series 5 Class A2 Asset Backed Fixed
Rate Notes due June 2042

£43,000,000 Series 5 Class B Asset Backed Floating
Rate Notes due June 2042

£32,000,000 Series 5 Class M Asset Backed Floating
Rate Notes due June 2042

£54,000,000
Series 5 Class C Asset Backed Floating Rate Notes due June 2042

 

LONDON

 

 

CONTENTS

 

	
  Clause

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions

  	
   

  
	
  2.

  	
  Covenant
  to Repay and to Pay Interest on Fourth Issuer Notes

  	
   

  
	
  3.

  	
  Form and Issue of
  Fourth Issuer Notes

  	
   

  
	
  4.

  	
  Replacement of
  Fourth Issuer Notes

  	
   

  
	
  5.

  	
  Register, Transfer and
  Exchange of Fourth Issuer Notes

  	
   

  
	
  6.

  	
  Fees, Duties and Taxes

  	
   

  
	
  7.

  	
  Covenant of Compliance

  	
   

  
	
  8.

  	
  Cancellation
  of Fourth Issuer Notes and Records

  	
   

  
	
  9.

  	
  Enforcement

  	
   

  
	
  10.

  	
  Proceedings, Actions and
  Indemnification

  	
   

  
	
  11.

  	
  Discharge of Payment

  	
   

  
	
  12.

  	
  Partial Payments

  	
   

  
	
  13.

  	
  Covenants by the Fourth
  Issuer

  	
   

  
	
  14.

  	
  Remuneration
  and Indemnification of the Note Trustee

  	
   

  
	
  15.

  	
  Supplement to Trustee Acts

  	
   

  
	
  16.

  	
  Note Trustee’s Liability

  	
   

  
	
  17.

  	
  Note
  Trustee Contracting with the Fourth Issuer

  	
   

  
	
  18.

  	
  Waiver, Authorisation
  and Determination

  	
   

  
	
  19.

  	
  Entitlement
  to Treat Noteholder as Absolute Owner

  	
   

  
	
  20.

  	
  Currency Indemnity

  	
   

  
	
  21.

  	
  Eligibility
  and Disqualification; New Note Trustee

  	
   

  
	
  22.

  	
  Note Trustee’s
  Retirement and Removal

  	
   

  
	
  23.

  	
  Note Trustee’s
  Powers to be Additional

  	
   

  
	
  24.

  	
  Notices

  	
   

  
	
  25.

  	
  Rights of Third Parties

  	
   

  
	
  26.

  	
  Trust Indenture Act
  Prevails

  	
   

  
	
  27.

  	
  Certificates and Opinions

  	
   

  
	
  28.

  	
  Governing Law

  	
   

  
	
  29.

  	
  Counterparts

  	
   

  
	
  30.

  	
  Submission to Jurisdiction

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Forms of Global Fourth
  Issuer Notes

  	
   

  
	
  2.

  	
  Forms of Definitive Fourth
  Issuer Notes

  	
   

  
	
  3.

  	
  Terms and Conditions of the
  Fourth Issuer Notes

  	
   

  
	
  4.

  	
  Provisions for Meetings of
  Noteholders

  	
   

  
	
  5.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signatories

  	
   

  

 

 

THIS FOURTH ISSUER TRUST DEED is made on 12th March, 2004

 

BETWEEN:

 

(1)                                  PERMANENT
FINANCING (NO. 4) PLC (registered number
4988201) whose registered office is at Blackwell House, Guildhall Yard, London
EC2V 5AE (the Fourth Issuer); and

 

(2)                                  THE BANK
OF NEW YORK, a New York banking corporation whose
London branch address is at 48th Floor, One Canada Square, London E14 5AL (acting
in its capacity as Note Trustee) as trustee for the Noteholders which
expression shall include such company and all other persons and companies for
the time being acting as note trustee under this Deed.

 

WHEREAS:

 

(A)                              By
a resolution of a duly authorised Board of Directors of the Fourth Issuer
passed on 11th
March, 2004 the Fourth Issuer has resolved to issue the Fourth
Issuer Notes which are constituted by this Deed and secured by the Fourth
Issuer Deed of Charge.

 

(B)                                The
Note Trustee has agreed to act as trustee of these presents for the benefit of
the Noteholders upon and subject to the terms and conditions of these presents.

 

NOW THIS FOURTH ISSUER TRUST DEED WITNESSES AND IT IS AGREED AND DECLARED:

 

1.                                      DEFINITIONS

 

1.1                                 The amended and
restated master definitions and construction schedule signed by, amongst
others, the parties to this Deed and dated 12th March, 2004 (as the same may be
amended, varied or supplemented from time to time with the consent of the
parties to this Deed) (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, signed for
the purposes of identification by Allen & Overy and Sidley Austin Brown
& Wood on
12th March, 2004 (as the same may be amended, varied or
supplemented from time to time) (the Fourth Issuer Master Definitions and Construction
Schedule) are expressly and specifically incorporated into this Deed
and, accordingly, the expressions defined in the Master Definitions and
Construction Schedule and the Fourth Issuer Master Definitions and Construction
Schedule (as so amended, varied or supplemented from time to time) shall,
except where the context otherwise requires and save where otherwise defined
herein, have the same meanings in this Deed.

 

1.2                                 (a)                                  All
references in these presents to principal and/or interest in respect of the
Fourth Issuer Notes or to any monies payable by the Fourth Issuer under these
presents shall be deemed to include a reference to any additional amounts which
may be payable under Condition 4(B) or, if applicable, under any
undertaking or covenant given pursuant to Clause 2.2.

 

(b)                                 All references
in these presents to £, sterling or pounds sterling shall be
construed as references to the lawful currency or currency unit for the time
being of the United Kingdom.  All
references to €, EUR,
euro
or Euro
shall be construed as references to the single currency introduced at the third
stage of European Economic and Monetary Union pursuant to the Treaty
establishing the European Communities as amended from time to time.  All references to $, U.S.$ or U.S. dollars shall be
construed as references to the lawful currency or currency unit for the time
being of the United States of America.

 

1

 

(c)                                  All references
in this Deed to these presents means this Deed, the schedules hereto, the
Fourth Issuer Notes, the Conditions, any deed expressed to be supplemental
hereto or thereto and the Fourth Issuer Deed of Charge and the schedules
thereto, all as from time to time supplemented or modified in accordance with
the provisions contained in this Deed and/or where applicable, therein
contained.

 

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

 

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

 

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

 

(g)                                 All references
in these presents to DTC, Euroclear and Clearstream, Luxembourg, shall be
deemed to include references to any other or additional clearing system as may
be approved in writing by the Note Trustee.

 

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

 

(i)                                     Whenever this
Deed refers to a provision of the Trust Indenture Act, the provision is
incorporated by reference in and made part of this Deed.  All other Trust Indenture Act terms used in
this Deed that are defined by the Trust Indenture Act, defined in the Trust
Indenture Act by reference to another statute or defined by SEC rules have the
meanings assigned to them in the Trust Indenture Act.

 

(j)                                     Wherever in this Deed
there is a requirement for the consent of, or a request from, the Fourth Issuer
Noteholders, then, for so long as any of the Fourth Issuer Notes is represented
by a Fourth Issuer Global Note registered in the name of DTC or its nominee,
DTC may mail an Omnibus Proxy to the Fourth Issuer in accordance with and in
the form used by DTC as part of its usual procedures from time to time.  Such Omnibus Proxy shall assign the right to
give such consent or, as the case may be,make such request to DTC’s direct
participants as of the record date specified therein and any such assignee
participant may give the relevant consent or, as the case may be, make the
relevant request in accordance with this Deed.

 

2.                                      COVENANT
TO REPAY AND TO PAY INTEREST ON FOURTH ISSUER NOTES

 

2.1                                 The aggregate
principal amount of:

 

(a)                                  the Series 1
Class A Fourth Issuer Notes is limited to U.S.$1,500,000,000;

 

(b)                                 the Series 1
Class B Fourth Issuer Notes is limited to U.S.$78,100,000;

 

(c)                                  the Series 1
Class M Fourth Issuer Notes is limited to U.S.$56,500,000;

 

(d)                                 the Series 2
Class A Fourth Issuer Notes is limited to U.S.$2,400,000,000;

 

2

 

(e)                                  the Series 2
Class B Fourth Issuer Notes is limited to U.S.$100,700,000;

 

(f)                                    the Series 2
Class M Fourth Issuer Notes is limited to U.S.$59,900,000;

 

(g)                                 the Series 2
Class C Fourth Issuer Notes is limited to U.S.$82,200,000;

 

(h)                                 the Series 3
Class A Fourth Issuer Notes is limited to U.S.$1,700,000,000;

 

(i)                                     the Series 3
Class B Fourth Issuer Notes is limited to U.S.$75,800,000;

 

(j)                                     the Series 3
Class M Fourth Issuer Notes is limited to U.S.$40,400,000;

 

(k)                                  the Series 3
Class C Fourth Issuer Notes is limited to U.S.$55,400,000;

 

(l)                                     the Series 4
Class A Fourth Issuer Notes is limited to €1,500,000,000;

 

(m)                               the Series 4
Class B Fourth Issuer Notes is limited to €85,000,000;

 

(n)                                 the Series 4
Class M Fourth Issuer Notes is limited to €62,500,000;

 

(o)                                 the Series 5
Class A1 Fourth Issuer Notes is limited to €750,000,000;

 

(p)                                 the Series 5
Class A Fourth Issuer Notes is limited to £1,100,000,000;

 

(q)                                 the Series 5
Class B Fourth Issuer Notes is limited to ££43,000,000;

 

(r)                                    the Series 5
Class M Fourth Issuer Notes is limited to ££32,000,000 and

 

(s)                                  the Series 5
Class C Fourth Issuer Notes is limited to ££54,000,000.

 

2.2                                 The Fourth
Issuer covenants with the Note Trustee that it will, in accordance with these
presents, on the due date for the final maturity of the Fourth Issuer Notes
provided for in the Conditions, or on such earlier date as the same or any part
thereof may become due and repayable thereunder, pay or procure to be paid
unconditionally to or to the order of the Note Trustee in euro, U.S. dollars or
sterling, as applicable, in London or New York City, as applicable, in
immediately available funds the principal amount of the Fourth Issuer Notes
repayable on that date and shall in the meantime and until the due date for the
final maturity of the Fourth Issuer Notes (both before and after any judgment
or other order of a court of competent jurisdiction) pay or procure to be paid
unconditionally to or to the order of the Note Trustee as aforesaid interest
(which shall accrue from day to day) on the Principal Amount Outstanding of the
Fourth Issuer Notes at the rates set out in or (as the case may be) calculated
from time to time in accordance with Condition 4 and on the dates provided for
in the Conditions PROVIDED THAT:

 

(a)                                  every payment of
principal or interest in respect of the Fourth Issuer Notes to or to the
account of the Principal Paying Agent, in the manner provided in the Fourth
Issuer Paying Agent and Agent Bank Agreement, shall operate in satisfaction pro tanto
of the relative covenant by the Fourth Issuer in this Clause 2.2 except to the
extent that there is default in the subsequent payment thereof in accordance
with the Conditions to the Noteholders;

 

(b)                                 in any case
where payment of principal is not made to the Note Trustee or the Principal
Paying Agent on or before the due date, interest shall continue to accrue on
the principal amount of the Fourth Issuer Notes (both before and after any
judgment

 

3

 

or other order
of a court of competent jurisdiction) at the rates aforesaid (or, if higher,
the rate of interest on judgment debts for the time being provided by English
law) up to and including the date which the Note Trustee determines to be the
date on and after which payment is to be made to the Noteholders in respect
thereof as stated in a notice given to the Noteholders in accordance with Condition 14
(such date to be not later than 30 days after the day on which the whole of
such principal amount, together with an amount equal to the interest which has
accrued and is to accrue pursuant to this proviso up to and including that
date, has been received by the Note Trustee or the Principal Paying Agent);

 

(c)                                  in any case
where payment of the whole or any part of the principal amount of any Fourth
Issuer Note is improperly withheld or refused upon due presentation thereof
(other than in circumstances contemplated by proviso (b) above) interest shall
accrue on that principal amount of which has been so withheld or refused (both
before and after any judgment or other order of a court of competent
jurisdiction) at the rates aforesaid (or, if higher, the rate of interest on
judgment debts for the time being provided by English law) from and including
the date of such withholding or refusal up to and including the date on which,
upon further presentation of the relevant Fourth Issuer Note, payment of the
full amount (including interest as aforesaid) in euro, U.S. dollars or
sterling, as applicable, payable in respect of such Fourth Issuer Note is made
or (if earlier) the seventh day after notice is given to the relevant
Noteholder (either individually or in accordance with Condition 14 that the full
amount (including interest as aforesaid) in euro, U.S. dollars or sterling, as
applicable, payable in respect of such Fourth Issuer Note is available for
payment, provided that, upon further presentation thereof being duly made, such
payment is made; and

 

(d)                                 notwithstanding
any other provision of this Deed, the right of any Noteholder to receive
payment of principal and interest on the Fourth Issuer Notes, on or after the
respective due dates expressed in the Fourth Issuer Notes, or to bring suit for
the enforcement of any such payment on or after such respective dates, shall
not be impaired or affected without the consent of the Noteholder.

 

The Fourth Issuer shall pay Additional Interest in
accordance with Condition 4(B).

 

The Note Trustee will hold the benefit of the
covenants contained in this Clause on trust for the Noteholders and itself in
accordance with this Deed.

 

2.3                                 At any time
after a Note Event of Default shall have occurred or the Fourth Issuer Notes
shall otherwise have become due and repayable or the Definitive Fourth Issuer
Notes have not been issued when so required in accordance with this Deed and
the relative Global Fourth Issuer Notes, the Note Trustee may and shall, if
directed by an Extraordinary Resolution of the Noteholders and subject to it
being indemnified and/or secured to its satisfaction:

 

(a)                                  by notice in
writing to the Fourth Issuer, the Principal Paying Agent, the U.S. Paying
Agent, the Transfer Agent and the Registrar require the Principal Paying Agent,
the U.S. Paying Agent, the Transfer Agent and the Registrar pursuant to the
Fourth Issuer Paying Agent and Agent Bank Agreement and by notice in writing to
the Fourth Issuer:

 

(i)                                     act thereafter
as Principal Paying Agent, U.S. Paying Agent, Transfer Agent and Registrar of
the Note Trustee in relation to payments to be made by or on behalf of the Note
Trustee under the provisions of this Deed mutatis mutandis on the terms provided in
the Fourth Issuer Paying Agent and Agent Bank Agreement (save that the Note
Trustee’s liability under any provisions thereof

 

4

 

for the
indemnification, remuneration and payment of out-of-pocket expenses of the
Paying Agents, the Transfer Agent and the Registrar shall be limited to the
amounts for the time being held by the Note Trustee on the trusts of these
presents relating to the relevant Fourth Issuer Notes and available for such
purpose) and thereafter to hold all Fourth Issuer Notes and all sums, documents
and records held by them in respect of Fourth Issuer Notes on behalf of the Note
Trustee; or

 

(ii)                                  deliver up all
Fourth Issuer Notes and all sums, documents and records held by them in respect
of the Fourth Issuer Notes to the Note Trustee or as the Note Trustee shall
direct in such notice provided that such notice shall be deemed not to apply to
any documents or records which the relevant Paying Agent or the Registrar, as
the case may be, is obliged not to release by any law or regulation; and/or

 

(b)                                 by notice in
writing to the Fourth Issuer require it to make all subsequent payments in
respect of the Fourth Issuer Notes to or to the order of the Note Trustee and
not to the Principal Paying Agent; with effect from the issue of any such
notice to the Fourth Issuer and until such notice is withdrawn Clause
2.2(a) relating to the Fourth Issuer Notes shall cease to have
effect.

 

2.4                                 The Fourth
Issuer shall require each paying agent not a party to the Fourth Issuer Paying
Agent and Agent Bank Agreement to agree in writing to hold in trust to the
extent required by the Trust Indenture Act for the benefit of the Noteholders
or the Note Trustee all money held by such paying agent for the payment of
principal of or interest on the Fourth Issuer Notes (whether such money has
been paid to it by the Fourth Issuer or any other obligor of the Fourth Issuer
Notes), and the Fourth Issuer and such paying agent shall each notify the Note
Trustee of any default by the Fourth Issuer (or any other obligor of the Fourth
Issuer Notes) in making any such payment.

 

3.                                      FORM
AND ISSUE OF FOURTH ISSUER NOTES

 

3.1                                 (a)                                  The
Series 1 Fourth Issuer Notes, the Series 2 Fourth Issuer Notes and the Series 3
Fourth Issuer Notes will be initially offered and sold pursuant to a
Registration Statement filed with the SEC. 
Each class of the Series 1 Fourth Issuer Notes, the Series 2 Fourth
Issuer Notes and the Series 3 Fourth Issuer Notes will initially be represented
by a separate global note in registered form (the Series 1 Class A Global Fourth Issuer
Note, the Series 1 Class B Global Fourth Issuer Note,
the Series
1 Class M Global Fourth Issuer Note, the Series 1 Class C Global Fourth Issuer
Note, the Series 2 Class A Global Fourth Issuer Note,
the Series
2 Class B Global Fourth Issuer Note, the Series 2 Class M Global Fourth Issuer
Note, the Series 2 Class C Global Fourth Issuer Note,
the Series
3 Class A Global Fourth Issuer Note, Series 3 Class B Global Fourth Issuer Note,
the Series
3 Class M Global Fourth Issuer Note and the Series 3 Class C Global Fourth Issuer
Note respectively, and together, the Dollar Global Fourth Issuer Notes),
in each case without coupons or talons attached and which, in aggregate, will
represent the aggregate principal amount outstanding of the Series 1 Fourth
Issuer Notes, the Series 2 Fourth Issuer Notes and the Series 3 Fourth Issuer
Notes.

 

(b)                                 The Series 4
Fourth Issuer Notes and the Series 5 Fourth Issuer Notes will be initially
offered and sold outside the United States to non-U.S. persons pursuant to
Regulation S (Reg S) under the Securities Act.  Each class of the Series 4 Fourth Issuer Notes
and the Series 5 Fourth Issuer Notes will initially be represented by a global
note in registered form (the Series 4 Class A Global Fourth Issuer Note,
the Series
4 Class

 

5

 

B Global Fourth Issuer Note,
the Series
4 Class M Global Fourth Issuer Note, the Series 5 Class A1 Global Fourth Issuer
Note, the Series 5 Class A2 Global Fourth Issuer Note,
the Series
5 Class B Global Fourth Issuer Note, the Series 5 Class M Global Fourth Issuer
Note and the Series 5 Class C Global Fourth Issuer Note
together, the Reg S Global Fourth Issuer Notes and, together with the Dollar
Global Fourth Issuer Notes, the Global Fourth Issuer Notes), in each case
without coupons or talons attached and which, in aggregate, will represent the
aggregate principal amount outstanding of the Series 4 Fourth Issuer Notes and
the Series 5 Fourth Issuer Notes.

 

3.2                                 The Global
Fourth Issuer Notes shall be printed or typed in, or substantially in, the
respective forms set out in Schedule 1 and may be executed in facsimile.  Each Global Fourth Issuer Note shall
represent such of the outstanding Fourth Issuer Notes of the relevant class as
shall be specified therein and each shall provide that it shall represent the
aggregate Principal Amount Outstanding of the relevant class of Fourth Issuer
Notes from time to time endorsed thereon and that the aggregate Principal
Amount Outstanding of the Fourth Issuer Notes represented thereby may from time
to time be reduced or increased, as appropriate, to reflect exchanges,
redemptions, purchases and transfers of interests therein in accordance with
the terms of this Deed and the Fourth Issuer Paying Agent and Agent Bank
Agreement.  Any endorsement of a Global
Fourth Issuer Note to reflect the amount of any increase or decrease in the
Principal Amount Outstanding of the Fourth Issuer Notes represented thereby
shall be made by the Registrar in accordance with Clause 5.  Title to the Global Fourth Issuer Notes
shall pass by and upon the registration in the Register in respect thereof in
accordance with the provisions of these presents.  The Global Fourth Issuer Notes shall be issuable only in
registered form without coupons or talons attached and signed manually by a person
duly authorised by the Fourth Issuer on behalf of the Fourth Issuer and shall
be authenticated by or on behalf of the Registrar.  The Global Fourth Issuer Notes so executed and authenticated
shall be binding and valid obligations of the Fourth Issuer, notwithstanding
that such duly authorised person no longer holds that office at the time the
Registrar authenticates the relevant Global Fourth Issuer Note.

 

3.3                                 The Global
Fourth Issuer Notes shall be issued by the Fourth Issuer to Cede & Co., as
nominee for DTC, in respect of each Dollar Global Fourth Issuer Note and to
Citivic Nominees Limited, as nominee for the Common Depositary, in respect of
each Reg S Global Fourth Issuer Note, on terms that Cede & Co. and Citivic
Nominees Limited shall, respectively, hold the same for the account of the persons
who would otherwise be entitled to receive the Definitive Fourth Issuer Notes
and the successors in title to such persons appearing in the records of DTC,
Euroclear and Clearstream, Luxembourg for the time being.  Upon the issuance of each such Global Fourth
Issuer Notes, DTC, Euroclear and Clearstream, Luxembourg shall credit, on their
respective internal book-entry registration and transfer systems, the accounts
of holders of Book-Entry Interests with the respective interests owned by such
Noteholders.

 

3.4                                 The provisions
of the Operating Procedures of the Euroclear System and Terms and Conditions
Governing Use of Euroclear and the General Terms and Conditions of Clearstream,
Luxembourg and Customer Handbook of Clearstream, Luxembourg shall be applicable
to interests in the Global Fourth Issuer Notes that are held through Euroclear
and Clearstream, Luxembourg.

 

3.5                                 The Fourth
Issuer shall issue Definitive Fourth Issuer Notes only if any of the following
applies while any of the Fourth Issuer Notes of any class are represented by a
Global Fourth Issuer Note of the relevant class at any time after the fortieth
day following the later of the Fourth Issuer Closing Date and the date of the
issue of such Global Fourth Issuer Note:

 

6

 

(a)                                  (in the case of
Dollar Global Fourth Issuer Notes) DTC has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as the registered holder of such
Dollar Global Fourth Issuer Notes or is at any time unwilling or unable to
continue as, or ceases to be, a clearing agency registered under the Exchange
Act, and a successor to DTC registered as a clearing agency under the Exchange
Act is not able to be appointed by the Fourth Issuer within 90 days of such
notification, or (in the case of the Reg S Global Fourth Issuer Notes) both
Euroclear and Clearstream, Luxembourg are closed for business for a continuous
period of 14 days (other than by reason of holiday, statutory or otherwise) or
announce an intention permanently to cease business and do so cease to do
business and no alternative clearing system satisfactory to the Note Trustee is
available; and

 

(b)                                 as a result of
any amendment to, or change in, the laws or regulations of the United Kingdom
(or of any political sub-division thereof) or of any authority therein or
thereof having power to tax or in the interpretation or administration by a
revenue authority or a court or administration of such laws or regulations
which becomes effective on or after the Fourth Issuer Closing Date, the Fourth
Issuer or any Paying Agent is or will be required to make any deduction or
withholding from any payment in respect of the Fourth Issuer Notes which would
not be required were the Fourth Issuer Notes in definitive form.

 

If required by this Clause 3, the Fourth Issuer
shall, at its sole cost and expense within 30 days of the occurrence of the
relevant event, issue Definitive Fourth Issuer Notes of the same class as the
class of Fourth Issuer Notes represented by the relevant Global Fourth Issuer
Note in exchange for the whole (or the remaining part(s) outstanding) of the
relevant Global Fourth Issuer Note.  If
Definitive Fourth Issuer Notes are issued, the beneficial interests represented
by the Reg S Global Fourth Issuer Notes of each class shall be exchanged by the
Fourth Issuer for Definitive Fourth Issuer Notes of that class (Reg S
Definitive Fourth Issuer Notes) and the beneficial interests
represented by the Dollar Global Fourth Issuer Note of each class shall be exchanged
by the Fourth Issuer for Definitive Fourth Issuer Notes of that class (Dollar
Definitive Fourth Issuer Notes).

 

3.6                                 The Definitive
Fourth Issuer Notes shall be printed or typed in, or substantially in, the form
set out in Schedule 2 in the denomination and transferable in units of (a)
U.S.$1,000 and U.S.$10,000 (in the case of the Series 1 Fourth Issuer Notes,
the Series 2 Fourth Issuer Notes and the Series 3 Fourth Issuer Notes), (b)
€500,000 (in the case of the Series 4 Fourth Issuer Notes, and the Series 5
Class A1 Fourth Issuer Notes and (c) £1,000 or £10,000 (in the case of the
Series 5 Class A2 Fourth Issuer Notes, the Series 5 Class B Fourth Issuer
Notes, the Series 5 Class M Fourth Issuer Notes and the Series 5 Class C Fourth
Issuer Notes) each or, in each case, integral multiples thereof or in such
other denominations (which in the case of the Series 4 Fourth Issuer Notes and
the Series 5 Class A1 Fourth Issuer Notes must be higher than €500,000) as the
Note Trustee shall determine and notify to the relevant Noteholders, shall be
serially numbered and shall be endorsed with a form of transfer in the form or
substantially in the form also set out in Schedule 2.  Title to the Definitive Fourth Issuer Notes shall pass by and
upon the registration in the Register in respect thereof in accordance with the
provisions of these presents.  The
Definitive Fourth Issuer Notes shall be issuable only in registered form
without coupons or talons attached and signed manually or in facsimile by a
person duly authorised by or on behalf of the Fourth Issuer and shall be
authenticated by or on behalf of the Registrar.  Each Fourth Issuer Note so executed and authenticated shall be a
binding and valid obligation of the Fourth Issuer notwithstanding that such
duly authorised person (for whatever reason) no longer holds that office at the
time the Registrar authenticates the Fourth Issuer Note.

 

7

 

3.7                                 If the Fourth
Issuer is obliged to issue or procure the issue of any Definitive Fourth Issuer
Notes pursuant to Clause 3.5 but fails to do so within 30
days of the occurrence of the relevant event described in Clause 3.5, then the Fourth
Issuer shall indemnify the Note Trustee, the registered holder of the relevant
Global Fourth Issuer Note(s) and the relevant Noteholders and keep them
indemnified against any and all loss or damage incurred by any of them if the
amount received by the Note Trustee, the registered holder of such Global
Fourth Issuer Note(s) or the relevant Noteholders in respect of the Fourth
Issuer Notes is less than the amount that would have been received had
Definitive Fourth Issuer Notes been issued in accordance with Clause 3.5.  If and for so long as the Fourth Issuer
discharges its obligations under this indemnity, the breach by the Fourth
Issuer of the provisions of Clause 3.5 shall be deemed to be cured ab initio.

 

4.                                      REPLACEMENT
OF FOURTH ISSUER NOTES

 

If a mutilated or defaced Global Fourth Issuer Note
or Definitive Fourth Issuer Note is surrendered to the Registrar or Transfer
Agent or if a Noteholder claims that a Global Fourth Issuer Note or Definitive
Fourth Issuer Note has been lost, stolen or destroyed, the Fourth Issuer shall
issue, and the Registrar shall authenticate, a replacement Global Fourth Issuer
Note or Definitive Fourth Issuer Note, respectively, on receipt of satisfactory
evidence in accordance with Condition 13.  An indemnity for an amount sufficient in the judgement of the Fourth
Issuer and the Registrar to protect the Fourth Issuer and the Registrar from
any loss which any of them may suffer if a Global Fourth Issuer Note or a
Definitive Fourth Issuer Note is replaced may be required by the Fourth Issuer
and the Registrar.  The Fourth Issuer
may charge such Noteholder for its costs in replacing such Fourth Issuer Note.

 

5.                                      REGISTER, TRANSFER AND EXCHANGE OF
FOURTH ISSUER NOTES

 

5.1                               Transfer
and Exchange of Global Fourth Issuer Notes

 

A Global Fourth Issuer Note will be exchanged by
the Fourth Issuer for another Global Fourth Issuer Note or Definitive Fourth
Issuer Note(s) only in the circumstances set forth in Clause 3.5, the Conditions,
the Fourth Issuer Paying Agent and Agent Bank Agreement and the relevant Global
Fourth Issuer Note.  Upon the occurrence
of any of the events specified therein concerning their exchange for Definitive
Fourth Issuer Notes, Definitive Fourth Issuer Notes of the relevant class shall
be issued in such names as the Fourth Issuer shall instruct the Registrar
(based on the instructions of DTC and Euroclear and Clearstream, Luxembourg)
and the Registrar shall cause the Principal Amount Outstanding of the
applicable Global Fourth Issuer Note to be reduced accordingly, cancel such
Global Fourth Issuer Note (if applicable) and direct DTC and Euroclear and
Clearstream, Luxembourg to make corresponding reductions in their book-entry
systems, and the Fourth Issuer shall execute and the Registrar shall
authenticate such Definitive Fourth Issuer Notes of the relevant class in the
appropriate principal amounts and the Registrar will register them.  The Registrar shall deliver such Definitive
Fourth Issuer Notes to the persons in whose names such Fourth Issuer Notes are
so registered.  Reg S Definitive Fourth
Issuer Notes issued in exchange for a Book-Entry Interest pursuant to this Clause 5.1
shall bear the legend set forth in Clause 5.4, and shall be subject to all
restrictions on transfer contained therein to the same extent as the Global
Fourth Issuer Note so exchanged.  Global
Fourth Issuer Notes may also be exchanged or replaced, in whole or in part, as
provided in Clause 4.  Every Fourth
Issuer Note authenticated and delivered in exchange for, or in lieu of, a
Global Fourth Issuer Note or any portion thereof, pursuant to Clause 4
hereof, shall be authenticated and delivered in the form of, and shall be, a
Global Fourth Issuer Note.  A Global
Fourth Issuer Note may not be exchanged for another Fourth Issuer Note other
than as provided in this Clause 5.1.

 

8

 

5.2                               Transfer
and Exchange of Book-Entry Interests

 

The transfer and exchange of Book-Entry Interests
shall be effected through DTC, Euroclear and/or Clearstream, Luxembourg, as the
case may be, in accordance with these presents, the Fourth Issuer Paying Agent
and Agent Bank Agreement and the procedures therefor of DTC, Euroclear and/or
Clearstream, Luxembourg, as the case may be. 
Book-Entry Interests shall be subject to restrictions on transfer
comparable to those set forth herein and in the Fourth Issuer Paying Agent and
Agent Bank Agreement to the extent required by the Securities Act.  The Note Trustee shall have no obligation to
ascertain or to monitor DTC’s, Euroclear’s or Clearstream, Luxembourg’s
compliance with any such restrictions on transfer.

 

5.3                               Transfer
of Definitive Fourth Issuer Notes

 

Definitive Fourth Issuer Notes may be transferred
in whole or in part (provided that any partial transfer relates to a Definitive
Fourth Issuer Note) in the principal amount of, in the case of the Series 1
Fourth Issuer Notes, the Series 2 Fourth Issuer Notes and the Series 3 Fourth
Issuer Notes, U.S.$1,000 or U.S.$10,000; in the case of the Series 4 Fourth
Issuer Notes and the Series 5 Class A1 Fourth Issuer Notes, €500,000; and in
the case of the Series 5 Fourth Issuer Notes, (other than the Series 5 Class A1
Fourth Issuer Notes) £1,000 or £10,000 or, in each case, any integral multiple
thereof or in such other denominations (which in the case of the Series 4 Fourth
Issuer Notes and the Series 5 Class A1 Fourth Issuer Notes must be higher than
€500,000) as the Note Trustee shall determine and notify to the relevant
Noteholders.  When Definitive Fourth
Issuer Notes are presented by a Noteholder to the Registrar with a request to
register the transfer of such Definitive Fourth Issuer Notes, the Registrar
shall register the transfer as requested only if such Definitive Fourth Issuer
Notes are presented or surrendered for registration of transfer and are
endorsed or accompanied by a written instrument of transfer in form
satisfactory to the Registrar duly executed by such Noteholder or by his
attorney duly authorised in writing and upon receipt of such certificates and
other documents as shall be necessary to evidence compliance with the
restrictions on transfer contained in this Agreement and in the Fourth Issuer
Paying Agent and Agent Bank Agreement. 
Thereupon, the Registrar shall request the Fourth Issuer to issue and
the Registrar shall itself authenticate new Definitive Fourth Issuer Notes
required to be issued in connection with such transfer.  In the case of a transfer of part only of
such Definitive Fourth Issuer Note, a new Definitive Fourth Issuer Note in
respect of the balance not transferred will be issued to the transferor.  All transfers of Definitive Fourth Issuer
Notes are subject to any restrictions on transfer set forth on such Definitive
Fourth Issuer Notes and the detailed regulations concerning transfers in the Fourth
Issuer Paying Agent and Agent Bank Agreement.

 

5.4                               Regulation
S Legend

 

Each Reg S Global Fourth Issuer Note and each Reg S
Definitive Fourth Issuer Note issued in exchange therefor shall bear a legend
in substantially the following form:

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND WILL NOT
BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND,
AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF
THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE FOURTH ISSUER
NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED
STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE SECURITIES
ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF

 

9

 

THE SECURITIES ACT AND IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

5.5                               Cancellation
and/or Adjustment of Global Fourth Issuer Notes

 

At such time as all Book-Entry Interests in respect
of a Global Fourth Issuer Note have been exchanged for Definitive Fourth Issuer
Notes, such Global Fourth Issuer Note shall be returned to or retained and
cancelled by the Registrar as set out in the Fourth Issuer Paying Agent and
Agent Bank Agreement.  At any time prior
to such cancellation, if any Book-Entry Interest is exchanged for an interest
in another Global Fourth Issuer Note, the principal amount of Fourth Issuer
Notes represented by such Global Fourth Issuer Note shall be reduced
accordingly and an endorsement shall be made on such Global Fourth Issuer Note
by the Registrar to reflect such reduction.

 

5.6                               General
Provisions Relating to all Transfers and Exchanges

 

(a)                                  To permit
registrations of transfers and exchanges of Fourth Issuer Notes, the Fourth
Issuer shall execute and the Registrar shall authenticate Global Fourth Issuer
Notes and Definitive Fourth Issuer Notes upon a written order signed by an
officer of the Fourth Issuer.

 

(b)                                 No service fee
shall be charged to a Noteholder for any registration of a Definitive Fourth
Issuer Note on transfer or exchange but the Fourth Issuer may require payment
of a sum sufficient to cover any stamp or transfer tax or similar governmental
charge payable in connection therewith (other than any such stamp or transfer
taxes or similar governmental charge payable upon exchange or transfer pursuant
to Condition
13) and the Registrar may require an indemnity in respect of such
tax or charge.

 

(c)                                  All Global
Fourth Issuer Notes and Definitive Fourth Issuer Notes issued upon any
registration of transfer or exchange of Global Fourth Issuer Notes or
Definitive Fourth Issuer Notes shall be the valid obligations of the Fourth
Issuer, evidencing the same debt and entitled to the same benefits under this
Deed, as the Global Fourth Issuer Notes or Definitive Fourth Issuer Notes
surrendered upon such registration of transfer or exchange.

 

5.7                               Register
of Fourth Issuer Notes

 

The Fourth Issuer shall at all times ensure that the
Registrar maintains in London, or at such other place as the Note Trustee may
agree in writing, a register (the Register) in respect of the Fourth Issuer
Notes showing the amount of the Global Fourth Issuer Notes or Definitive Fourth
Issuer Notes, as the case may be, from time to time outstanding and the dates
of issue and all subsequent transfers and changes of ownership thereof and the
names and addresses of the holders of the Global Fourth Issuer Notes or the
Definitive Fourth Issuer Notes.  So long
as DTC or its nominee, or the Common Depositary or its nominee, is the
registered holder of a Global Fourth Issuer Note, DTC or the Common Depositary,
as the case may be, will be considered the sole registered holder of such
Global Fourth Issuer Note for all purposes under this Fourth Issuer Trust
Deed.  Each Fourth Issuer Note, whether
in global or definitive form, shall have an identifying serial number which
shall be entered on the Register.  The
Note Trustee and the holders of such Fourth Issuer Notes or any of them and any
person authorised by it or any of them may at all reasonable times during
office hours inspect the Register and take copies of or extracts from it.

 

6.                                      FEES, DUTIES AND TAXES

 

The Fourth Issuer will pay any stamp duty, issue,
registration, documentary or other taxes of a similar nature and duties payable
in the United Kingdom, Belgium, Luxembourg or the

 

10

 

United States, including interest and penalties, on
or in connection with (a) the execution and delivery of these presents and the
Transaction Documents to which it is a party and any documents executed
pursuant thereto, (b) the constitution and original issue of the Fourth Issuer
Notes, and (c) any action in any jurisdiction taken by or on behalf of the Note
Trustee or (where permitted under these presents so to do) any Noteholder to
enforce the Fourth Issuer Notes.

 

7.                                      COVENANT OF COMPLIANCE

 

The Fourth Issuer covenants with the Note Trustee
that it will comply with and perform and observe all the provisions of these
presents, the Fourth Issuer Notes, the Fourth Issuer Deed of Charge, the Fourth
Issuer Paying Agent and Agent Bank Agreement and the documents executed
pursuant thereto and the other Transaction Documents which are expressed to be
binding on it.  The Conditions shall be
binding on the Fourth Issuer, the Noteholders, the Note Trustee and all persons
claiming through or under any of them. 
The Note Trustee shall be entitled to enforce the obligations of the
Fourth Issuer under the Fourth Issuer Notes and the Conditions and to exercise
any other rights, powers, authorities and discretions conferred upon the Note
Trustee in the Conditions as if the same were set out and contained in this
Deed, which shall be read and construed as one document with the Fourth Issuer
Notes.  The Note Trustee shall hold the
benefit of this covenant upon trust for itself and the Noteholders according to
its and their respective interests.  The
provisions of Schedule 4 shall have effect in the same manner as if
herein set forth.

 

8.                                      CANCELLATION
OF FOURTH ISSUER NOTES AND RECORDS

 

8.1                                 The Fourth
Issuer shall procure that all Fourth Issuer Notes (a) redeemed, (b) being
mutilated or defaced, surrendered and replaced pursuant to Condition 13 or (c) exchanged
as provided in these presents shall forthwith be cancelled by or on behalf of
the Fourth Issuer and a certificate stating:

 

(d)                                 the aggregate
principal amount of Fourth Issuer Notes which have been redeemed;

 

(e)                                  the serial
numbers of Fourth Issuer Notes of each class so redeemed;

 

(f)                                    the aggregate
amount of interest paid (and the due dates of such payments) on Fourth Issuer
Notes of each class; and

 

(g)                                 the aggregate
principal amounts of Fourth Issuer Notes of each class which have been so
exchanged and replaced and the serial numbers of such Fourth Issuer Notes in
definitive form,

 

shall be given to the Note Trustee by or on behalf
of the Fourth Issuer as soon as possible and in any event within four months
after the date of such redemption, purchase, cancellation, exchange or
replacement, as the case may be.  The
Note Trustee may accept without further investigation or inquiry such
certificate as conclusive evidence of such redemption, purchase, exchange or
replacement pro
tanto of the Fourth Issuer Notes or payment of interest thereon and
of cancellation of the relative Fourth Issuer Notes.

 

8.2                                 The Fourth
Issuer shall procure that the Registrar shall keep a full and complete record
of all Fourth Issuer Notes and of their redemption, cancellation, payment or
exchange (as the case may be) and of all replacement Fourth Issuer Notes issued
in substitution for lost, stolen, mutilated, defaced or destroyed Fourth Issuer
Notes.  The Fourth Issuer shall procure
that the Registrar shall at all reasonable times make such record available to
the Fourth Issuer and the Note Trustee.

 

11

 

8.3                                 All records and
certificates maintained pursuant to this Clause shall make a distinction
between Definitive Fourth Issuer Notes and Global Fourth Issuer Notes.

 

9.                                      ENFORCEMENT

 

9.1                                 The Note Trustee
may at any time, at its discretion and without notice, take such proceedings
and/or other action as it may think fit against or in relation to the Fourth
Issuer or any other person as it may think fit to enforce its obligations under
these presents, the Fourth Issuer Notes or any of the other Transaction
Documents.

 

9.2                                 Unless the
contrary be proved to the satisfaction of the Note Trustee, proof that as
regards any specified Fourth Issuer Note the Fourth Issuer has made default in
paying any amount due in respect of such Fourth Issuer Note shall be sufficient
evidence that the same default has been made as regards all other Fourth Issuer
Notes in respect of which the relevant amount is due and payable.

 

9.3                                 References in Clauses
2.2(b) and 2.2(c) or the provisions of any trust deed
supplemental to this Deed corresponding to Clauses 2.2(b) and 2.2(c) to the rates aforesaid
shall, in the event of such Fourth Issuer Notes having become due and
repayable, with effect from the expiry of the Interest Period during which such
Fourth Issuer Notes become due and repayable, be construed as references to
rates of interest calculated mutatis mutandis in accordance with the
Conditions except that no notices need be published in respect thereof.

 

10.                               PROCEEDINGS, ACTIONS AND
INDEMNIFICATION

 

10.1                           The Note Trustee
shall not be bound to take any proceedings mentioned in Clause 9.1 or any other
action in relation to these presents, the Fourth Issuer Notes or any documents
executed pursuant thereto or any of the other Transaction Documents to which
the Note Trustee is a party unless (a) respectively directed or requested to do
so by an Extraordinary Resolution of the Class A Fourth Issuer Noteholders, the
Class B Fourth Issuer Noteholders, the Class M Fourth Issuer Noteholders, or
the Class C Fourth Issuer Noteholders, as the case may be, or in writing by the
holders of at least one-quarter in aggregate Principal Amount Outstanding of
the Class A Fourth Issuer Notes, the Class B Fourth Issuer Notes, the Class M
Fourth Issuer Notes or the Class C Fourth Issuer Notes, as the case may be, and
(b) it shall be indemnified and/or secured to its satisfaction against all
liabilities, actions, proceedings, claims and demands to which it may be or
become liable and all costs, charges, damages and expenses which may be
incurred by it in connection therewith, and the terms of such indemnity may
include the provisions of a fighting fund, non-recourse loan or other similar
arrangement PROVIDED THAT:

 

(a)                                  the Note Trustee
shall not be obliged to act at the direction or request of the Class B Fourth
Issuer Noteholders as aforesaid unless either the Note Trustee is of the sole
opinion that to do so would not be materially prejudicial to the interests of
the Class A Fourth Issuer Noteholders or such action is sanctioned by an
Extraordinary Resolution of the Class A Fourth Issuer Noteholders;

 

(b)                                 the Note Trustee
shall not be obliged to act at the direction or request of the Class M Fourth
Issuer Noteholders as aforesaid unless (x) either the Note Trustee is of the
sole opinion that to do so would not be materially prejudicial to the interests
of the Class A Fourth Issuer Noteholders or such action is sanctioned by an
Extraordinary Resolution of the Class A Fourth Issuer Noteholders and (y)
either the Note Trustee is of the sole opinion that to do so would not be
materially prejudicial to the interests of the Class B Fourth Issuer
Noteholders or such action is sanctioned by an Extraordinary Resolution of the
Class B Fourth Issuer Noteholders.

 

12

 

(c)                                  the Note Trustee
shall not be obliged to act at the direction or request of the Class C Fourth
Issuer Noteholders as aforesaid unless (x) either the Note Trustee is of the
sole opinion that to do so would not be materially prejudicial to the interests
of the Class A Fourth Issuer Noteholders or such action is sanctioned by an
Extraordinary Resolution of the Class A Fourth Issuer Noteholders and (y)
either the Note Trustee is of the sole opinion that to do so would not be
materially prejudicial to the interests of the Class B Fourth Issuer
Noteholders or such action is sanctioned by an Extraordinary Resolution of the
Class B Fourth Issuer Noteholders and (z) either the Note Trustee is of the
sole opinion that to do so would not be materially prejudicial to the interests
of the Class M Fourth Issuer Noteholders or such action is sanctioned by an
Extraordinary Resolution of the Class M Fourth Issuer Noteholders.

 

10.2                           Save
as provided below, only the Note Trustee may enforce the provisions of these
presents, the Conditions or the Fourth Issuer Notes.  No Noteholder shall be entitled to proceed directly against the
Fourth Issuer or any other party to any of the Fourth Issuer Transaction
Documents unless the Note Trustee having become bound as aforesaid to take
proceedings fails to do so within a reasonable period and such failure is
continuing provided that no Class C Fourth Issuer Noteholder, no Class M Fourth
Issuer Noteholder and no Class B Fourth Issuer Noteholder shall be entitled to
take proceedings for the winding up or administration of the Fourth Issuer for
so long as there are any Class A Fourth Issuer Notes outstanding and no Class M
Fourth Issuer Noteholder shall be entitled to take proceedings for the winding
up or administration of the Fourth Issuer for so long as there are any Class B
Fourth Issuer Notes outstanding and no Class C Fourth Issuer Noteholder shall
be entitled to take proceedings for the winding up or administration of the
Fourth Issuer for so long as there are any Class M Fourth Issuer Notes
outstanding.  Consistent with Section
316 of the Trust Indenture Act, each Noteholder shall have the right to
institute proceedings for the enforcement of payment of principal and interest
on the Fourth Issuer Notes held by it, on or after the maturity date of the
relevant Fourth Issuer Notes set out on the face of such Fourth Issuer Notes.

 

11.                               DISCHARGE OF PAYMENT

 

Any payment to be made in respect of the Fourth
Issuer Notes by the Fourth Issuer or the Note Trustee may be made in accordance
with the Conditions and any payment so made shall be a good discharge of the
relevant payment obligation of the Fourth Issuer or, as the case may be, the
Note Trustee.

 

12.                               PARTIAL PAYMENTS

 

Upon presentation and surrender to the Registrar of
a Definitive Fourth Issuer Note that is redeemed in part, the Registrar shall
authenticate for the holder a new Definitive Fourth Issuer Note equal in
principal amount to the principal amount of the unredeemed portion of the
Definitive Fourth Issuer Note surrendered. 
Upon presentation of a Global Fourth Issuer Note that is redeemed in
part, the Registrar shall make a notation on Part Ii of the Schedule thereto to
reduce the aggregate principal amount of such Global Fourth Issuer Note to an
amount equal to the aggregate principal amount of the unredeemed portion of the
Global Fourth Issuer Note presented.

 

13.                               COVENANTS BY THE FOURTH
ISSUER

 

So long as any of the Fourth Issuer Notes remains
outstanding (or, in the case of paragraphs (h), (i), (j), (n) and (o), so long as any of the
Fourth Issuer Notes remains liable to prescription or, in the case of paragraph
(q), until the expiry of a period of 30 days after the relevant date
(as defined in Condition 7) in respect of the payment of principal in respect
of

 

13

 

all such Fourth Issuer Notes remaining outstanding
at such time) the Fourth Issuer covenants with the Note Trustee that it shall:

 

(a)                                  Conduct:  at all times carry on and conduct its affairs in a proper and
efficient manner and in accordance with its constitutive documents and all laws
and regulations applicable to it;

 

(b)                                 Information:  give or procure to be given to the Note
Trustee such opinions, certificates, information and evidence as the Note
Trustee shall require and in such form as it shall require, including without
limitation the procurement by the Fourth Issuer of all such certificates called
for by the Note Trustee pursuant to this Deed for the purpose of the discharge
or exercise of the duties, trusts, powers, authorities and discretions vested
in it under these presents or by operation of law;

 

(c)                                  Accounts for Stock Exchange:  cause to be prepared and certified by the
Auditors of the Fourth Issuer in respect of each Financial Period, accounts in
such form as will comply with all relevant legal and accounting requirements
and all requirements for the time being of any stock exchange, competent listing
authority and/or quotation system on or by which the Fourth Issuer Notes are
listed, quoted and/or traded;

 

(d)                                 Books and Records:  at all times keep proper books of account
and allow the Note Trustee and any person appointed by the Note Trustee free
access to such books of account at all reasonable times during normal business
hours;

 

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

 

(f)                                    Notice of
Note Event of Default:  give notice in writing to the Note Trustee of the occurrence of
any Note Event of Default or any matter it concludes, acting reasonably, to be
likely to give rise to a Note Event of Default immediately upon becoming aware
thereof, including the status of any such default or matter and what action the
Fourth Issuer is taking or proposes to take with respect thereto, and without
waiting for the Note Trustee to take any action;

 

(g)                                 Notice of Deferral of Payments:  as soon as practicable after becoming aware
that any part of a payment of interest on the Fourth Issuer Notes will be
deferred or that a payment previously deferred will be made in accordance with Condition 4,
give notice thereof to the Noteholders in accordance with Condition 14 and, for so long
as the Fourth Issuer Notes are listed on the official list of the United
Kingdom Listing Authority and admitted to trading on the London Stock
Exchange’s market for listed securities, in accordance with the listing rules
of the United Kingdom Listing Authority and the rules of the London Stock
Exchange;

 

(h)                                 Certificates Relating to Financial Information:  give to the Note Trustee (i) within 14 days
after demand by the Note Trustee therefor and (ii) (without the necessity for
any such demand) promptly after the publication of its audited accounts in
respect of each Financial Period commencing with the financial period first
ending after the date hereof and in any event not later than 120 days after the
end of each such financial period a certificate signed by two directors of the
Fourth Issuer to the effect that as at

 

14

 

a date not more
than seven days before delivering such certificate (the certification date) there did
not exist and had not existed since the certification date of the previous
certificate (or in the case of the first such certificate the date hereof) any
Note Event of Default (or if such exists or existed, specifying the same) and
that during the period from and including the certification date of the last
such certificate (or in the case of the first such certificate the date hereof)
to and including the certification date of such certificate the Fourth Issuer
has complied, to the best of such directors’ knowledge and belief, with all its
obligations contained in these presents and each of the Fourth Issuer
Transaction Documents to which it is a party or (if such is not the case)
specifying the respects in which it has not so complied;

 

(i)                                     Further
Assurances:  at
all times execute and do all such further documents, acts and things as may be
necessary at any time or times in the opinion of the Note Trustee to give
effect to these presents and the other Fourth Issuer Transaction Documents only
in so far as permitted by law;

 

(j)                                     Agent
Bank, Reference Banks etc.:  at all times maintain an Agent Bank, four Reference Banks, a
Paying Agent, a Transfer Agent and a Registrar in accordance with the
Conditions;

 

(k)                                  Notification of Non-Payment:  procure the Principal Paying Agent (or any
other relevant Paying Agent) to notify the Note Trustee forthwith in the event
that (i) the Principal Paying Agent (or other relevant Paying Agent) does not,
on or before the due date for any payment in respect of any of the Fourth
Issuer Notes, receive unconditionally pursuant to the Fourth Issuer Paying
Agent and Agent Bank Agreement, as applicable, payment of the full amount in
the requisite currency of the monies payable on such due date on all such
Fourth Issuer Notes, or (ii) there are insufficient funds in euro, U.S.
dollars, or sterling, as the case may be, available to the Principal Paying
Agent to discharge the amount of the monies payable on such due date;

 

(l)                                     Notification
of Late Unconditional Payment:  in the event of any unconditional payment to the Principal Paying
Agent, any other relevant Paying Agent, or the Note Trustee of any sum due in
respect of any of the Fourth Issuer Notes being made after the due date for
payment thereof forthwith give or procure to be given notice to the relevant
Noteholders in accordance with Condition 14 that such payment has been made;

 

(m)                               Listing:  use reasonable endeavours to maintain the listing of the Fourth
Issuer Notes on the official list of the United Kingdom Listing Authority and
to maintain the admission to trading of the Fourth Issuer Notes on the London
Stock Exchange’s market for listed securities or, if it is unable to do so
having used reasonable endeavours, use reasonable endeavours to obtain and
maintain a quotation, listing and admission to trading of the Fourth Issuer
Notes on or by such other stock exchanges, competent listing authorities and/or
quotation systems as the Fourth Issuer may decide (with the prior written
approval of the Note Trustee) and shall also upon obtaining a quotation,
listing and admission to trading of such Fourth Issuer Notes on or by such
other stock exchanges, competent listing authorities and/or quotation systems
enter into a trust deed supplemental to this Deed to effect such consequential
amendments to this Deed as the Note Trustee may require or as shall be
requisite to comply with the requirements of any such stock exchange, competent
listing authority and/or quotation system;

 

15

 

(n)                                 Change of Agent Bank, Reference Banks, etc.:  give notice to the Noteholders in accordance
with Condition
14 of any appointment, resignation or removal of any Agent Bank,
Reference Banks, Paying Agent, Transfer Agent or Registrar (other than the
appointment of the initial Agent Bank, Reference Banks, Paying Agents, Transfer
Agent and Registrar) after, except in the case of resignation, having obtained
the prior written approval of the Note Trustee (such approval not to be
unreasonably withheld or delayed) thereto or any change of any Paying Agent’s,
Agent Bank’s, Transfer Agent’s or Registrar’s specified office and (except as
provided by the Fourth Issuer Paying Agent and Agent Bank Agreement or the
Conditions) at least 30 days prior to such event taking effect; PROVIDED
ALWAYS THAT so long as any of the Fourth Issuer Notes remains
outstanding in the case of the termination of the appointment of the Agent
Bank, Transfer Agent or the Registrar or so long as any of the Fourth Issuer
Notes remains liable to prescription in the case of the termination of the
appointment of the Principal Paying Agent no such termination shall take effect
until a new Agent Bank, Transfer Agent, Registrar or Principal Paying Agent, as
the case may be, has been appointed on terms previously approved in writing by
the Note Trustee;

 

(o)                                 Pre-Approval of Notices:  obtain the prior written approval of the
Note Trustee to, and promptly give to the Note Trustee and the Rating Agencies
two copies of, the form of every notice given to the Noteholders in accordance
with Condition
14 (such approval, unless so expressed, not to constitute an
invitation or inducement to engage in investment activities within the meaning
of Section 21 of the Financial Services and Markets Act 2000);

 

(p)                                 Availability of Meeting Materials:  from time to time as required or
contemplated by this Deed or as reasonably requested by the Note Trustee, make
available through the Paying Agents, or otherwise, such documents as may be
required by the Noteholders in connection with meetings of Noteholders;

 

(q)                                 Compliance with Fourth Issuer Paying Agent and Agent
Bank Agreement and other Transaction Documents:  use its best endeavours to procure that the
Agent Bank, the Paying Agents, the Transfer Agent and the Registrar comply with
and perform all their respective obligations under the Fourth Issuer Paying
Agent and Agent Bank Agreement and the other Transaction Documents and (in the
case of the Paying Agents, the Transfer Agent and the Registrar) any notice
given by the Note Trustee pursuant to Clause 2.3(a) and not make any amendment or
modification to the Fourth Issuer Paying Agent and Agent Bank Agreement or any
other Transaction Documents or agree to waive or authorise any breach thereof
without the prior written approval of the Note Trustee;

 

(r)                                    Exercise
of Redemption Rights:  in the event that Funding 1 elects to prepay any Term Advance in
whole or in part under Clause 8 of the Intercompany Loan Terms and
Conditions or Clause 6 of the Fourth Issuer Intercompany Loan Confirmation,
the Fourth Issuer shall exercise its right to redeem the corresponding class or
classes of Fourth Issuer Notes in the same respective aggregate principal
amounts as such Term Advance on the same Interest Payment Date under Condition 5(B)
or Condition 5(F),
as applicable;

 

(s)                                  Redemption Requirements:  not give notice of its election to redeem
all or any part of a class or classes of Fourth Issuer Notes pursuant to Condition
5(D),  (E) or (F) unless it shall first have:

 

16

 

(i)                                     given prior
written notice to the Note Trustee of its intention so to do in accordance with
the Fourth Issuer Paying Agent and Agent Bank Agreement;

 

(ii)                                  delivered to the
Note Trustee a certificate signed by two directors of the Fourth Issuer
certifying that the Fourth Issuer will have the necessary funds on the Interest
Payment Date on which redemption is to occur (the redemption date) to discharge
all amounts required under the Fourth Issuer Deed of Charge to be paid in
priority to such class or classes of Fourth Issuer Notes on the redemption
date, and to redeem such class or classes of Fourth Issuer Notes in whole or,
as the case may be, in part; and that all such funds will on such redemption
date be subject to the security constituted by the Fourth Issuer Deed of Charge
and not subject to the interest of any other person; and

 

(iii)                               provided
evidence acceptable to the Note Trustee of the matters certified by it in
paragraph (ii) above,

 

provided always that the provisions of this
subclause are subject to and without prejudice to the provisions of Clause 13(o);

 

(t)                                    United
States Reporting Requirements:  file with the Note Trustee copies of the annual reports and of
the information, documents, and other reports (or copies of such portions of
any of the foregoing as the SEC may by rules and regulations prescribe) which
the Fourth Issuer is required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act within 15 days after it files them with the SEC and
comply with the other provisions of Section 314(a) of the Trust Indenture Act;

 

(u)                                 Interest in Fourth Issuer Charged Property:  ensure that, save as permitted in these
presents, the Fourth Issuer Deed of Charge, the Conditions and the other Fourth
Issuer Transaction Documents, no person other than the Fourth Issuer and the
Security Trustee shall have any equitable interest in the Fourth Issuer Charged
Property;

 

(v)                                 Maintenance of Fourth Issuer Cash Manager:  ensure that there is at all times a cash
manager appointed in accordance with the provisions of the Fourth Issuer Cash
Management Agreement;

 

(w)                               Tax Deduction:  take reasonable steps to ensure that it does
not engage in any course of conduct that would lead to a deduction, for United
Kingdom corporation tax purposes, in respect of accrued interest or discount on
the Fourth Issuer Notes by the Fourth Issuer being denied, postponed or restricted
(whether such denial, postponement or restriction results from the application
of paragraph 2 or 13 of Schedule 9 of the Finance Act 1996 or otherwise);

 

(x)                                   United Kingdom and United States Tax Status:  ensure that it is at all times solely
resident in the United Kingdom for United Kingdom tax purposes and has no
branch, business establishment or other fixed establishment outside the United
Kingdom; and furthermore, ensure that it will not engage in any activities in
the United States (directly or through agents), will not derive any income from
United States sources as determined under United States income tax principles,
and will not hold any property if doing so would cause it to be engaged or
deemed to be engaged in a trade or business within the United States as
determined under United States income tax principles;

 

17

 

(y)                                 Pre-Enforcement Payments:  ensure that amounts standing to the credit
of the Fourth Issuer Transaction Account will be applied by the Fourth Issuer
in or towards satisfaction of such of the obligations set out in the Fourth
Issuer Cash Management Agreement as may be, at any given time, then due and
payable (in each case only if and to the extent that payments or provisions of
a higher order of priority which are also due and payable or are likely to fall
due at that time or prior to the next succeeding Interest Payment Date have
been made or provided for in full);

 

(z)                                   Availability of Information:  make available for inspection by Noteholders
at the specified office of the Registrar during normal business hours on any
Business Day copies of each balance sheet and profit and loss account sent to
the Note Trustee pursuant to Clause 13(e), this Deed, and the other
Transaction Documents and promptly provide the Registrar with the information
specified in Condition 5(C);

 

(aa)                            Ratings:  furnish, or procure that there is furnished, from time to time,
any and all documents, instruments, information and undertakings that may be
reasonably necessary in order to maintain the current ratings of the Fourth
Issuer Notes by the Rating Agencies (save that when any such document,
instrument, information and/or undertaking is not within the possession or
control of the Fourth Issuer, the Fourth Issuer agrees only to use its best
efforts to furnish, or procure that there is furnished, from time to time any
such documents, instruments, information and undertakings as may be reasonably
necessary in order to maintain the current ratings of the Fourth Issuer Notes
by the Rating Agencies);

 

(bb)                          Calculations:  do, or procure that there are done on its
behalf, all calculations required pursuant to the Conditions;

 

(cc)                            DTC, Euroclear and Clearstream, Luxembourg:  use its reasonable endeavours to procure
that DTC, Euroclear and/or Clearstream, Luxembourg (as the case may be)
issue(s) any certificate or other document requested by the Note Trustee acting
reasonably pursuant to these presents as soon as practicable after such
request;

 

(dd)                          Information Regarding Noteholders:  furnish or cause to be furnished to the Note
Trustee on 30th June and 31st December of each year, commencing 30th June, 2004
and at such other times as the Note Trustee may request in writing, all
information in the possession or control of the Fourth Issuer, or of the
Registrar as to the names and addresses of the Noteholders, and requiring the
Note Trustee to preserve, in as current a form as is reasonably practicable,
all such information so furnished to it;

 

(ee)                            Officers’ Certificates and Opinions of Counsel;
Statements to be Contained Therein:  upon any application, demand or request by
the Fourth Issuer to the Note Trustee to take any action under any of the
provisions of this Deed (other than the issuance of Fourth Issuer Notes) and
upon request of the Note Trustee, furnish to the Note Trustee an officers’
certificate and opinion of counsel complying with the provisions of Section 314
of the Trust Indenture Act (an Officers’ Certificate and Opinion of
Counsel, respectively);

 

(ff)                                Authorised Signatories:  upon the execution of this Deed and
thereafter forthwith upon any change of the same, deliver to the Note Trustee
(with a copy to the Principal Paying Agent and the Registrar) a list of the
Authorised Signatories of the Fourth Issuer, together with certified specimen
signatures of the same; and

 

(gg)                          New Notes: procure that
notice of any New Notes to be issued by any New Issuer is given to the
Noteholders in accordance with Condition 14.

 

18

 

14.                               REMUNERATION
AND INDEMNIFICATION OF THE NOTE TRUSTEE

 

14.1                           The Fourth
Issuer shall pay to the Note Trustee remuneration for its services as trustee
as from the date of this Deed, such remuneration to be at such rate and to be
paid on such dates as may from time to time be agreed in writing between the
Fourth Issuer and the Note Trustee.  The
rate of remuneration in force from time to time may upon the final redemption
of the whole of the Fourth Issuer Notes of any series be reduced by such amount
as shall be agreed in writing between the Fourth Issuer and the Note Trustee,
such reduced remuneration to be calculated from such date as shall be agreed as
aforesaid.  Such remuneration shall
accrue from day to day and be payable (in priority to payments to the
Noteholders) up to and including the date when, all the Fourth Issuer Notes
having become due for redemption, the redemption monies and interest thereon to
the date of redemption have been paid to the Principal Paying Agent or, as the
case may be, the Note Trustee PROVIDED THAT if upon due presentation of
any Fourth Issuer Note or any cheque payment of the monies due in respect
thereof is improperly withheld or refused, remuneration will commence again to
accrue until payment to Noteholders is made.

 

14.2                           In the event of
the occurrence of a Note Event of Default or the Note Trustee in its absolute
discretion considering it necessary, or being requested by the Fourth Issuer to
undertake duties which the Note Trustee and the Fourth Issuer agree to be of an
exceptional nature or otherwise outside the scope of the normal duties of the
Note Trustee under this Deed, the Fourth Issuer shall pay to the Note Trustee
such additional remuneration as shall be agreed between them.

 

14.3                           The Fourth
Issuer shall pay to the Note Trustee in addition an amount equal to the amount
of any value added tax or similar tax chargeable in respect of its remuneration
under this Deed against production of a valid tax invoice.

 

14.4                           In the event of
the Note Trustee and the Fourth Issuer failing to agree:

 

(a)                                  (in a case to
which subclause
14.1 above applies) upon the amount of the remuneration; or

 

(b)                                 (in a case to which subclause  14.2 above
applies) upon whether such duties shall be of an exceptional nature or
otherwise outside the scope of the normal duties of the Note Trustee under this
Deed, or upon such additional remuneration,

 

such matters shall be determined by a merchant or
investment bank (acting as an expert and not as an arbitrator) selected by the
Note Trustee and approved by the Fourth Issuer or, failing such approval,
nominated (on the application of the Note Trustee) by the President for the
time being of The Law Society of England and Wales (the expenses involved in
such nomination and the fees of such merchant or investment bank being payable
by the Fourth Issuer) and the determination of any such merchant or investment
bank shall be final and binding upon the Note Trustee and the Fourth Issuer.

 

14.5                           In addition to
remuneration hereunder, the Fourth Issuer shall on written request pay (on an
indemnity basis) all other costs, charges and expenses which the Note Trustee
may properly incur in relation to the negotiation, preparation and execution
of, the exercise of its powers and the performance of its duties under, and in any
other manner in relation to, this Deed and any other Transaction Document to
which the Note Trustee is a party, including but not limited to travelling and
legal expenses properly incurred and any stamp, issue, registration,
documentary and other similar taxes or duties paid or payable by the Note
Trustee in connection with any action taken or contemplated by or on behalf of
the Note Trustee for

 

19

 

enforcing, or
for any other purpose in relation to, this Deed or any of the other Transaction
Documents.

 

14.6                           All amounts
payable pursuant to subclause  14.2 above and/or Clause 15(l) shall be payable by the Fourth
Issuer on the date specified in a written demand by the Note Trustee and in the
case of payments actually made by the Note Trustee prior to such demand shall
(if not paid within three days after such demand and the Note Trustee so
requires) carry interest at the rate of 3 per cent. per annum above the mean
base rate from time to time of the Reference Banks from the date specified in
such demand, and in all other cases shall (if not paid on the date specified in
such demand or, if later, within three days after such demand and, in either
case, the Note Trustee so requires) carry interest at such rate from the date
specified in such demand.  All
remuneration payable to the Note Trustee shall carry interest at such rate from
the due date therefor.

 

14.7                           Unless otherwise
specifically stated in any discharge of this Deed the provisions of this Clause
and Clause
15(l) shall continue in full force and effect notwithstanding such
discharge.

 

14.8                           The Note Trustee
shall be entitled in its absolute discretion to determine in respect of which
series of Fourth Issuer Notes any liabilities incurred under this Deed have
been incurred.

 

15.                               SUPPLEMENT TO TRUSTEE
ACTS

 

Section 1 of the Trustee Act 2000 shall not apply
to the duties of the Trustee in relation to the trusts constituted by these
presents.  Where there are any
inconsistencies between the Trustee Acts and the provisions of these presents,
the provisions of these presents shall, to the extent allowed by law, prevail
and, in the case of any such inconsistency with the Trustee Act 2000, the
provisions of these presents shall constitute a restriction or exclusion for
the purposes of that Act.

 

The Note Trustee shall have all the powers
conferred upon trustees by the Trustee Act 1925 of England and Wales and by way
of supplement thereto it is expressly declared as follows (which provisions,
except as expressly provided in this Clause 15, shall be in lieu of the
provisions contained in Section 315(a) of the Trust Indenture Act):

 

(a)                                  Expert Advice or Opinion:  the Note Trustee may in relation to these
presents or the other Transaction Documents act on the advice or opinion of or
any information obtained from any lawyer, valuer, accountant, surveyor, banker,
broker, auctioneer or other expert whether obtained by the Fourth Issuer, the
Note Trustee, the Principal Paying Agent, the Registrar or otherwise and shall
not be responsible for any liability occasioned by so acting in good faith; any
such advice, opinion or information may be sent or obtained by letter, telex,
telegram, facsimile transmission, e-mail or cable and the Note Trustee shall
not be liable for acting on any advice, opinion or information purporting to be
conveyed by any such letter, telex, telegram, facsimile transmission or cable
although the same shall contain some error or shall not be authentic;

 

(b)                                 Certificate as Sufficient Evidence:  the Note Trustee may call for and shall be
at liberty to accept as sufficient evidence of any fact or matter or the
expediency of any transaction or thing a certificate signed by any two
directors of the Fourth Issuer and the Note Trustee shall not be bound in any
such case to call for further evidence or be responsible for any liability that
may be occasioned by it or any other person acting on such certificate;

 

20

 

(c)                                  Custody of Documents:  the Note Trustee shall be at liberty to hold
these presents and any other documents relating thereto or any other
Transaction Documents or to deposit them in any part of the world with any
banker or banking company or company whose business includes undertaking the
safe custody of documents or lawyer or firm of lawyers considered by the Note
Trustee to be of good repute and the Note Trustee shall not be responsible for
or required to insure against any liability incurred in connection with any
such holding or deposit and may pay all sums required to be paid on account of
or in respect of any such deposit;

 

(d)                                 Application of Proceeds:  the Note Trustee shall not be responsible
for the receipt or application of the proceeds of the issue of any of the
Fourth Issuer Notes by the Fourth Issuer, the exchange of any Global Fourth
Issuer Note for another Global Fourth Issuer Note or Definitive Fourth Issuer
Notes or the exchange of any Definitive Fourth Issuer Note for another
Definitive Fourth Issuer Note or the delivery of any Global Fourth Issuer Note
or Definitive Fourth Issuer Notes to the person(s) entitled to it or them;

 

(e)                                  Assumption of No Default:  except to the extent required pursuant to
Section 315(b) of the Trust Indenture Act, the Note Trustee shall not be bound
to give notice to any person of the execution of any documents comprised or
referred to in these presents or to take any steps to ascertain whether any
Note Event of Default has happened and, until it shall have actual written
notice pursuant to these presents to the contrary, the Note Trustee shall be
entitled to assume that no Note Event of Default has occurred and that the
Fourth Issuer is observing and performing all of its obligations under these
presents;

 

(f)                                    Absolute
Discretion: 
save as expressly otherwise provided in this Deed, the Note Trustee
shall have absolute and uncontrolled discretion as to the exercise or
non-exercise of its trusts, powers, authorities and discretions under these
presents (the exercise or non-exercise of which as between the Note Trustee and
the Noteholders shall be conclusive and binding on the Noteholders) and
provided it shall not have acted fraudulently or negligently or in breach of
the terms of this Deed, shall not be responsible for any liability which may
result from their exercise or non-exercise;

 

(g)                                 Reliance on Extraordinary Resolution:  the Note Trustee shall not be liable to any
person by reason of having acted upon any Extraordinary Resolution in writing
or any Extraordinary Resolution or other resolution purporting to have been
passed at any meeting of the Noteholders of all or any class or classes in
respect whereof minutes have been made and signed even though subsequent to its
acting it may be found that there was some defect in the constitution of the
meeting or the passing of the resolution or (in the case of an Extraordinary
Resolution in writing) that not all Noteholders had signed the Extraordinary
Resolution or that for any reason the resolution was not valid or binding upon
such Noteholders;

 

(h)                                 Reliance on Notice of Prepayment:  without prejudice to the right of the Note
Trustee to require and/or accept any other evidence, the Note Trustee may
accept as conclusive evidence of the matters certified therein a certificate
signed by two directors of the Fourth Issuer under Clause 13(s)(ii).  The Note Trustee shall have no
responsibility to the Noteholders or any other person for guaranteeing or
ensuring that the Fourth Issuer’s liabilities in respect of the Fourth Issuer
Notes and any other amounts are in fact discharged on the due date and shall
have no liability to the Noteholders or any other person for any failure by the
Fourth Issuer to discharge or pay such liabilities and other amounts;

 

21

 

(i)                                     Fourth
Issuer Charged Property:  the Note Trustee may accept without enquiry, requisition or
objection such title as the Fourth Issuer may have to the Fourth Issuer Charged
Property or any part thereof from time to time and shall not be bound to
investigate or make any enquiry into the title of the Fourth Issuer to the
Fourth Issuer Charged Property or any part thereof from time to time whether or
not any default or failure is or was known to the Note Trustee or might be, or
might have been, discovered upon examination, inquiry or investigation and
whether or not capable of remedy. 
Notwithstanding the generality of the foregoing, each Noteholder shall
be solely responsible for making its own independent appraisal of and
investigation into the financial condition, creditworthiness, condition,
affairs, status and nature of the Fourth Issuer, and the Note Trustee shall not
at any time have any responsibility for the same and each Noteholder shall not
rely on the Note Trustee in respect thereof;

 

(j)                                     Reliance
on Certificates or Confirmations:  except in the event of wilful default or
manifest error, the Note Trustee shall be entitled to rely without
investigation or enquiry on a certificate or confirmation of the Agent Bank,
any Paying Agent, any Rating Agency or any Reference Bank in respect of every
matter and circumstance for which a certificate or confirmation of the Agent
Bank, any Paying Agent, any Rating Agency or any Reference Bank is expressly
provided for under these presents, the Conditions or any other Transaction
Document and to call for and rely upon a certificate or confirmation of the
Agent Bank, any Paying Agent, any Rating Agency or any Reference Bank or any
other person as to any other fact or matter prima facie within the knowledge of the
Agent Bank, any Paying Agent, any Rating Agency or any Reference Bank or such
other person, as sufficient evidence thereof and the Note Trustee shall not be
bound in any such case to call for further evidence or be responsible for any
loss, liability, costs, damages, expenses or inconvenience that may be
occasioned by its failing so to do or the exercise or non-exercise by the Note
Trustee of any of its powers, duties and discretions hereunder;

 

(k)                                  Fourth Issuer Notes Not Authentic:  the Note Trustee shall not be liable to any
person by reason of having accepted as valid or not having rejected any Fourth
Issuer Note purporting to be such and subsequently found to be forged or not
authentic;

 

(l)                                     Indemnity:  without prejudice to the right of indemnity
by law given to trustees, the Fourth Issuer shall indemnify the Note Trustee
(except where the Note Trustee is indemnified by the Noteholders) and keep it
or him indemnified against all liabilities to which it or he may be or become
subject or which may be incurred by it or him in the proper execution or
purported proper execution of any of its or his trusts, powers, authorities and
discretions under these presents or any other Transaction Document or its or
his functions under any such appointment or in respect of any other matter or
thing done or omitted in any way relating to these presents or any other
Transaction Document or any such appointment save to the extent that the same
arises as a result of wilful default, wilful misconduct, fraud or breach of
trust on the part of the Note Trustee. 
The Note Trustee shall keep the Fourth Issuer informed of the progress
of any claims against the Note Trustee;

 

(m)                               Consent or Approval:  any consent or approval given by the Note
Trustee for the purposes of these presents or the Fourth Issuer Notes may be
given on such terms and subject to such conditions (if any) as the Note Trustee
thinks fit (acting reasonably) and, notwithstanding anything to the contrary in
these presents or the Fourth Issuer Notes, may be given retrospectively;

 

(n)                                 No Disclosure Obligation:  unless and to the extent ordered so to do by
a court of competent jurisdiction, the Note Trustee shall not be required to
disclose to any

 

22

 

Noteholder any
information (including, without limitation, information of a confidential,
financial or price sensitive nature) made available to the Note Trustee by the
Fourth Issuer or any other person in connection with these presents or any
other Transaction Document and no Noteholder shall be entitled to take any
action to obtain from the Note Trustee any such information;

 

(o)                                 Currency Conversion:  where it is necessary or desirable for any
purpose in connection with these presents to convert any sum from one currency
to another it shall be converted (unless otherwise provided by these presents
or required by law) at such rate or rates, in accordance with such method and
as at such date for the determination of such rate of exchange, as may be
agreed by the Note Trustee in consultation with the Fourth Issuer and any rate,
method and date so agreed shall be binding on the Fourth Issuer and the
Noteholders;

 

(p)                                 Certificate in respect of Material Prejudice:  the Note Trustee may certify whether or not
any of the conditions, events and acts set out in Condition 9 (each of which
conditions, events and acts shall, unless the Note Trustee in its absolute
discretion shall otherwise determine, for all the purposes of these presents be
deemed to include the circumstances resulting therein and the consequences resulting
therefrom) is in its opinion materially prejudicial to the interests of the
Noteholders of the relevant class or classes and any such certificate shall be
conclusive and binding upon the Fourth Issuer and the Noteholders;

 

(q)                                 Determination by Note Trustee:  the Note Trustee as between itself and the
Noteholders may determine all questions and doubts arising in relation to any
of the provisions of this Deed.  Every
such determination, whether or not relating in whole or in part to the acts or
proceedings of the Note Trustee, shall be conclusive and shall bind the Note
Trustee and the Noteholders;

 

(r)                                    Interests
of Noteholders:  in
connection with the exercise by the Note Trustee of any of its trusts, duties,
rights, powers, authorities and discretions under these presents and the other
Transaction Documents:

 

(i)                                     where it is
required to have regard to the interests of the Noteholders of any class, it
shall have regard to the interests of such Noteholders as a class and, in
particular but without prejudice to the generality of the foregoing, shall not
have regard to, or be in any way liable for, the consequences of any exercise
thereof for individual Noteholders resulting from their being for any purpose
domiciled or resident in, or otherwise connected with, or subject to the
jurisdiction of, any particular territory, and the Note Trustee shall not be
entitled to require, nor shall any Noteholder be entitled to claim, from the
Fourth Issuer or any other person, any indemnification or payment in respect of
any tax consequence of any such exercise upon individual Noteholders;

 

(ii)                                  except where
expressly provided otherwise, it shall have regard to the interests of the
Class A Fourth Issuer Noteholders, the Class B Fourth Issuer Noteholders, the
Class M Fourth Issuer Noteholders and the Class C Fourth Issuer Noteholders
equally PROVIDED
THAT (A) if in the opinion of the Note Trustee there is a conflict
between the interests of the Class A Fourth Issuer Noteholders, on the one hand
and the interests of the Class B Fourth Issuer Noteholders and/or the Class M
Fourth Issuer Noteholders and/or the Class C Fourth Issuer Noteholders on the
other hand, the Note Trustee shall have regard only to the interests of the
Class A Fourth Issuer Noteholders and (B), if in the opinion of the Note
Trustee there is a conflict between the

 

23

 

interests of the
Class B Fourth Issuer Noteholders on one hand and the interests of the Class M
Fourth Issuer Noteholders and the Class C Fourth Issuer Noteholders on the
other hand, the Note Trustee shall have regard only to the interests of the
Class B Fourth Issuer Noteholders and (C), if in the opinion of the Note
Trustee there is a conflict between the interests of the Class M Fourth Issuer
Noteholders on one hand and the interests of the Class C Fourth Issuer
Noteholders on the other hand, the Note Trustee shall have regard only to the
interests of the Class M Fourth Issuer Noteholders; but so that this proviso
shall not apply in the case of powers, authorities or discretions in relation
to which it is expressly stated that they may be exercised by the Note Trustee
only if in its opinion the interests of all the Noteholders would not be
materially prejudiced thereby; and

 

(iii)                               it shall not
have regard to, or be in any way liable for, the consequences of any exercise
thereof for any other Fourth Issuer Secured Creditor or any other person,

 

the Note Trustee shall be entitled to assume, for
the purposes of exercising any power, right, trust, authority, duty or
discretion under or in relation to the Fourth Issuer Notes, these presents or
any of the other Fourth Issuer Transaction Documents, that such exercise will
not be materially prejudicial to the interests of the Class A Fourth Issuer Noteholders
if each of the Rating Agencies has confirmed that the then current rating by it
of the Class A Fourth Issuer Notes would not be adversely affected by such
exercise, that such exercise will not be materially prejudicial to the
interests of the Class B Fourth Issuer Noteholders if each of the Rating
Agencies has confirmed that the then current rating by it of the Class B Fourth
Issuer Notes would not be adversely affected by such exercise, that such
exercise will not be materially prejudicial to the interests of the Class M
Fourth Issuer Noteholders if each of the Rating Agencies has confirmed that the
then current rating by it of the Class M Fourth Issuer Notes will not be
adversely affected by such exercise and that such exercise will not be materially
prejudicial to the interests of the Class C Fourth Issuer Noteholders if each
of the Rating Agencies has confirmed that the then current rating by it of the
Class C Fourth Issuer Notes will not be adversely affected by such exercise;

 

(s)                                  Certificate of Principal Amount Outstanding:  the Note Trustee may call for any
certificate or other document to be issued by DTC, Euroclear or Clearstream,
Luxembourg as to the Principal Amount Outstanding of Fourth Issuer Notes
represented by a Global Fourth Issuer Note standing to the account of any
person.  Any such certificate or other
document shall (in the absence of manifest error) be conclusive and binding for
all purposes.  The Note Trustee shall
not be liable to any person by reason of having accepted as valid or not having
rejected any certificate or other document to such effect purporting to be
issued by DTC, Euroclear or Clearstream, Luxembourg and subsequently found to
be forged or not authentic;

 

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

 

24

 

(u)                                 Power of Attorney:  the Note Trustee may whenever it thinks fit
(acting reasonably) delegate by power of attorney or otherwise to any person or
persons or fluctuating body of persons (whether being a joint trustee of these
presents or not) all or any of its trusts, powers, authorities and discretions
under these presents.  Such delegation
may be made upon such terms (including power to sub-delegate) and subject to
such conditions and regulations as the Note Trustee may in the interests of the
Noteholders think fit.  The Note Trustee
shall not be under any obligation to supervise the proceedings or acts of any
such delegate or sub-delegate or be in any way responsible for any liability
incurred by reason of any misconduct or default on the part of any such
delegate or sub-delegate (except where such delegate or sub-delegate is an
affiliate, associate or otherwise connected with the Note Trustee).  The Note Trustee shall within a reasonable
time after any such delegation or any renewal, extension or termination thereof
give notice thereof to the Fourth Issuer;

 

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

 

(w)                               Ratings:  the Note Trustee shall have no responsibility for the maintenance
of any rating of any of the Fourth Issuer Notes by the Rating Agencies or any
other person;

 

(x)                                   No Requirement to Perform Illegal Acts, etc.:  no provision of these presents shall require
the Note Trustee to do anything which may be illegal or contrary to applicable
law or regulation or expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties, or in the exercise
of any of its rights or powers or otherwise in connection with these presents,
any other Transaction Document or the Fourth Issuer Notes (including, without
limitation, forming any opinion or employing any legal, financial or other
adviser), if it shall believe that repayment of such funds or adequate
indemnity against such risk or liability is not assured to it;

 

(y)                                 Reports by Note Trustee to Noteholders:  if required by Section 313(a) of the Trust
Indenture Act, within 60 days after 31st December of any year, commencing
31st December, 2004, the Note Trustee shall deliver to each Noteholder a
brief report dated as of such 31st December that complies with Section 313(a)
of the Trust Indenture Act.  The Note
Trustee also shall comply with Section 313(b), (c) and (d) of the Trust
Indenture Act.  Reports delivered
pursuant to this Clause 15(y) shall be sent as provided in Clause 24;

 

(z)                                   Preferential Collection of Claims Against the Fourth
Issuer:  the Note
Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding
any creditor relationship listed in Section 311(b) of the Trust Indenture
Act.  A Note Trustee who has resigned or
been removed shall be subject to Section 311(a) of the Trust Indenture Act to
the extent indicated therein.  The
provisions of Section 311 of the Trust Indenture Act shall apply to the Fourth
Issuer as the obligor of the Fourth Issuer Notes;

 

(aa)                            Responsibility for Reports etc.:  the Note Trustee has no responsibility to
verify or monitor the contents of, or (if applicable) to check any calculations
contained in, any reports, information, documents, Officers’ Certificate and
Opinions of Counsel

 

25

 

delivered to the
Note Trustee in accordance with Clauses 13(t), (dd), (ee) or (ff) or Clause 27, and is under no
obligation to inform Noteholders of the contents of any such reports, information,
documents, Officers’ Certificate and Opinions of Counsel, other than allowing
Noteholders upon reasonable notice, to inspect such reports, information,
documents, Officers’ Certificate and Opinions of Counsel;

 

(bb)                          Auditors Reports and Certificates:  any certificate or report of the Auditors
called for by or provided to the Note Trustee in accordance with or for the
purposes of these presents may be relied on upon by the Note Trustee without
further investigation or enquiry as sufficient evidence of the facts stated
therein notwithstanding that such certificate or report and/or any engagement
letter or other document entered into by the Note Trustee in connection
therewith contains a monetary or other limit on the liability of the Auditors
in respect thereof; and

 

(cc)                            Limitation of Liability:  subject to Clause 16 and save as
required for the purposes of the Trust Indenture Act, the Note Trustee
shall not be responsible for the genuineness, validity, effectiveness or
suitability of any of the Fourth Issuer Transaction Documents or any other
documents entered into in connection therewith or any other document or any
obligation or rights created or purported to be created thereby or pursuant
thereto or any security or the priority thereof constituted or purported to be
constituted thereby or pursuant thereto, nor shall it be responsible or liable
to any person because of any invalidity of any provision of such documents or
the unenforceability thereof, whether arising from statute, law or decisions of
any court and (without prejudice to the generality of the foregoing) the Note
Trustee shall not have any responsibility for or have any duty to make any
investigation in respect of or in any way be liable whatsoever for:

 

(i)                                     the nature,
status, creditworthiness or solvency of the Fourth Issuer or Funding 1 or any
other person or entity who has at any time provided any security or support
whether by way of guarantee, charge or otherwise in respect of any advance made
to the Fourth Issuer;

 

(ii)                                  the execution, delivery,
legality, validity, adequacy, admissibility in evidence or enforceability of
any Fourth Issuer Transaction Document or any other document entered into in
connection therewith;

 

(iii)                               the title,
ownership, value, sufficiency, enforceability or existence of any Fourth Issuer
Charged Property or any security (howsoever described) relating thereto;

 

(iv)                              the
registration, filing, protection or perfection of any security (howsoever
described) relating to the Fourth Issuer Charged Property or the priority of
the security (howsoever described) thereby created whether in respect of any
initial advance or any subsequent advance or any other sums or liabilities;

 

(v)                                 the scope or
accuracy of any representations, warranties or statements made by or on behalf
of the Fourth Issuer or Funding 1 or any other person or entity who has at any
time provided the same in any Fourth Issuer Transaction Document or in any
document entered into in connection therewith;

 

(vi)                              the
performance or observance by the Fourth Issuer or Funding 1 or any other person
of any provisions of any Fourth Issuer Transaction Document or any document
entered into in connection therewith or the fulfilment or

 

26

 

satisfaction of
any conditions contained therein or relating thereto or as to the existence or
occurrence at any time of any default, event of default or similar event
howsoever described contained therein or any waiver or consent which has at any
time been granted in relation to any of the foregoing;

 

(vii)                           the existence,
accuracy or sufficiency of any legal or other opinions, searches, reports,
certificates, valuations or investigations delivered or obtained or required to
be delivered or obtained at any time in connection with any Fourth Issuer
Charged Property or Fourth Issuer Transaction Document;

 

(viii)                        the title of the Fourth
Issuer to any Fourth Issuer Charged Property;

 

(ix)                                the suitability,
adequacy or sufficiency of any applicable criteria for any advances under the
Fourth Issuer Intercompany Loan Agreement or the legality or recoverability or
enforceability thereof or the priority of any security (howsoever described) in
relation thereto;

 

(x)                                   the failure by
the Fourth Issuer to obtain or comply with any licence, consent or other
authority in connection with the Fourth Issuer Charged Property or the Fourth
Issuer Transaction Documents or the making of any advances in connection
therewith or the failure to effect or procure registration of or to give notice
to any person in relation to or otherwise protect the security (howsoever
described) created or purported to be created by or pursuant to any of the
Fourth Issuer Charged Property or the Fourth Issuer Transaction Documents or
other documents entered into in connection therewith;

 

(xi)                                the failure to
call for delivery of documents of title to or require any transfers, legal
mortgages, charges or other further assurances in relation to any of the assets
that are the subject matter of any of the Fourth issuer Transaction Documents
or any other document;

 

(xii)                             any assets
comprised in the security (howsoever described) created by the Fourth Issuer
Deed of Charge, or any deeds or documents of title thereto, being uninsured or
inadequately insured or being held by or to the order of other parties to the
Fourth Issuer Transaction Documents, clearing organisations or their operators
or by intermediaries such as banks, brokers, depositories, warehousemen or
other similar persons whether or not on behalf of the Note Trustee;

 

(xiii)                          any accounts,
books, records or files maintained by the Fourth Issuer or any other person in
respect of any of the Fourth Issuer Charged Property or Transaction Documents;
or

 

(xiv)                         any other matter or thing
relating to or in any way connected with any Fourth Issuer Charged Property or
any Fourth Issuer Transaction Document or any document entered into in
connection therewith whether or not similar to the foregoing.

 

16.                               NOTE TRUSTEE’S LIABILITY

 

None of the provisions of these presents shall, in
any case in which the Note Trustee has failed to show the degree of care and
diligence required of it as trustee of these presents, having regard to the
provisions of these presents and any of the other Fourth Issuer Transaction
Documents to which the Note Trustee is a party conferring on the Note Trustee

 

27

 

any powers, authorities or discretions, relieve or
indemnify the Note Trustee against any liabilities which by virtue of any rule
of law would otherwise attach to it in respect of any wilful default, wilful
misconduct, breach of duty, negligence or breach of trust of which it may be
guilty in relation to its duties under these presents.

 

17.                               NOTE
TRUSTEE CONTRACTING WITH THE FOURTH ISSUER

 

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

 

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

 

(b)                                 accepting or
holding the trusteeship of any other trust deed constituting or securing any
other notes issued by or relating to the Fourth Issuer or any other party to
the Fourth Issuer Transaction Documents or any such person or body corporate so
associated or any other office of profit under the Fourth Issuer or any other
party to the Fourth Issuer Transaction Documents or any such person or body
corporate so associated,

 

and shall be entitled to exercise and enforce its
rights, comply with its obligations and perform its duties under or in relation
to any such contract, transaction or arrangement as is referred to in (a) above
or, as the case may be, any such trusteeship or office of profit as is referred
to in (b) above without regard to the interests of the Noteholders and
notwithstanding that the same may be contrary or prejudicial to the interests
of the Noteholders and shall not be responsible for any liability occasioned to
the Noteholders thereby and shall be entitled to retain and shall not be in any
way liable to account for any profit made or share of brokerage or commission or
remuneration or other amount or benefit received thereby or in connection
therewith.

 

Where any holding company, subsidiary or associated
company of the Note Trustee or any director or officer of the Note Trustee
acting other than in such capacity as director or officer has any information,
the Note Trustee shall not thereby be deemed also to have knowledge of such
information and, unless it shall have express notice pursuant to this Deed of
such information, shall not be responsible for any loss suffered by Noteholders
resulting from the Note Trustee’s failing to take such information into account
in acting or refraining from acting under or in relation to these presents.

 

18.                               WAIVER, AUTHORISATION AND
DETERMINATION

 

18.1                           The Note Trustee
may, without the consent or sanction of the Noteholders and without prejudice
to its rights in respect of any subsequent breach, from time to time and at any
time but only if and in so far as in its opinion the interests of the
Noteholders of each class of

 

28

 

Fourth Issuer
Notes shall not be materially prejudiced thereby waive or authorise any breach
or proposed breach by the Fourth Issuer or any other party thereto of any of
the covenants or provisions contained in these presents or any of the other
Fourth Issuer Transaction Documents or determine that any Note Event of Default
shall not be treated as such for the purposes of these presents PROVIDED
ALWAYS THAT the Note Trustee shall not exercise any powers conferred
on it by this Clause in contravention of any express direction given by
Extraordinary Resolution of any class of Fourth Issuer Notes or by a request
under Condition
9 or 10 but so that no such direction or request shall affect any
waiver, authorisation or determination previously given or made.  Any such waiver, authorisation or
determination may be given or made on such terms and subject to such conditions
(if any) as the Note Trustee may determine, shall be binding on the Noteholders
and, if, but only if, the Note Trustee shall so require, shall be notified by
the Fourth Issuer to the Noteholders in accordance with Condition 14 as soon as
practicable thereafter.  The provisions
of this Clause
18.1 shall be in lieu of section 316(a)(1)(B) of the Trust Indenture
Act and section 316(a)(1)(B) of the Trust Indenture Act is hereby expressly
excluded from this Deed and the Fourth Issuer Notes, as permitted by the Trust
Indenture Act.

 

18.2                        Modification

 

(a)                                  The Note Trustee
may without the consent or sanction of the Noteholders at any time and from
time to time concur with the Fourth Issuer in making any modification (except a
Basic Terms Modification (as defined in paragraph 5 of Schedule 4 hereto)) (i)
to these presents or any of the other Fourth Issuer Transaction Documents which
in the sole opinion of the Note Trustee it may be proper to make PROVIDED
THAT the Note Trustee is of the opinion that such modification will
not be materially prejudicial to the interests of the Noteholders of each class
of Fourth Issuer Notes or (ii) to these presents or any of the other Fourth
Issuer Transaction Documents if in the sole opinion of the Note Trustee such
modification is of a formal, minor or technical nature or is necessary to
correct a manifest error or an error established as such to the satisfaction of
the Note Trustee (and for the avoidance of doubt, the Note Trustees shall be
entitled to assume, without further investigation or inquiry, that such
modification, waiver or authorisation will not be materially prejudicial to the
interests of the Fourth Issuer Noteholders of each of the Rating Agencies has
confirmed in writing that the then current ratings of the applicable series
and/or class or classes of Fourth Issuer Notes would not be adversely affected
by such modification, waiver or authorisation).  Any such modification may be made on such terms and subject to
such conditions (if any) as the Note Trustee may determine, shall be binding
upon the Noteholders and, unless the Note Trustee agrees otherwise, shall be
notified by the Fourth Issuer to the Noteholders and the Rating Agencies in
accordance with Condition 14 as soon as practicable thereafter.

 

(b)                                 So long as any
of the Fourth Issuer Notes are rated by the Rating Agencies, the Fourth Issuer
shall notify the Rating Agencies in writing as soon as reasonably practicable
thereafter of any modification to the provisions of these presents, the Fourth
Issuer Notes or any of the other Transaction Documents.  The Note Trustee may also agree, without the
consent of the Noteholders, to a change of the laws governing the Fourth Issuer
Notes and/or the Fourth Issuer Transaction Documents (and to any consequential
amendments deriving therefrom) PROVIDED THAT such change and consequential
amendments would not, in the opinion of the Note Trustee, be materially
prejudicial to the interests of the Noteholders.

 

18.3                        Rating
Agencies

 

If:

 

(a)                                  a confirmation of rating or
other response by a Rating Agency is a condition to any action or step under
any Fourth Issuer Transaction Document; and

 

29

 

(b)                                 a written request for such
confirmation or response is delivered to each Rating Agency by the Fourth
Issuer (copied to the Note Trustee and either one or more Rating Agency (each a
Non-Responsive
Rating Agency) indicates that it does not consider such confirmation
or response necessary in the circumstances or within 30 days of delivery of
such request elicits no confirmation or response and/or such request elicits no
statement by such Rating Agency that such request could not be given; and

 

(c)                                  at lease one Rating Agency
gives such a confirmation or response based on the same facts,

 

then such condition shall be deemed to be
modified with respect to the facts set out in the request referred to in paragraph
(b) (above) so that there shall be no requirement for the
confirmation or response from the Non-Responsive Rating Agency.

 

The Note Trustee shall be entitled to treat
as conclusive a certificate by any director, officer or employee of the Fourth
Issuer, Funding 1, the Seller, any investment bank or financial adviser acting
in relation to the Fourth Issuer Notes as to any matter referred to in paragraph
(b) (above) in the absence of manifest error or the Note Trustee
having facts contradicting such certificates specifically drawn to his
attention and the Note Trustee shall not be responsible for any loss,
liability, costs, damages, expenses or inconvenience that may be caused as a
result of treating such certificate as conclusive.

 

18.4                        Breach

 

Any breach of or failure to comply with any such
terms and conditions as are referred to in subclauses 18.1 and 18.2 of this Clause shall
constitute a default by the Fourth Issuer in the performance or observance of a
covenant or provision binding on it under or pursuant to these presents.

 

19.                               ENTITLEMENT
TO TREAT NOTEHOLDER AS ABSOLUTE OWNER

 

The Fourth Issuer, the Note Trustee, the Paying
Agents, the Transfer Agent and the Registrar may (to the fullest extent
permitted by applicable laws) deem and treat the registered holder of any
Fourth Issuer Note or of a particular principal amount of the Fourth Issuer
Notes as the absolute owner of such Fourth Issuer Note or principal amount, as
the case may be, for all purposes (whether or not such Fourth Issuer Note or principal
amount shall be overdue and notwithstanding any notice of ownership thereof or
of trust or other interest with regard thereto, any notice of loss or theft
thereof or any writing thereon), and the Fourth Issuer, the Note Trustee, the
Paying Agents, the Transfer Agent and the Registrar shall not be affected by
any notice to the contrary.  All
payments made to any such registered holder of a Definitive Fourth Issuer Note
or Global Fourth Issuer Note shall be valid and, to the extent of the sums so
paid, effective to satisfy and discharge the liability for the monies payable
in respect of such Fourth Issuer Note or principal amount, as the case may be.

 

20.                               CURRENCY INDEMNITY

 

The Fourth Issuer shall indemnify the Note Trustee,
every appointee of the Note Trustee and the Noteholders and keep them
indemnified against:

 

(a)                                  any liability
incurred by any of them arising from the non-payment by the Fourth Issuer of
any amount due to the Note Trustee or the Noteholders under these presents by
reason of any variation in the rates of exchange between those used for the

 

30

 

purposes of
calculating the amount due under a judgment or order in respect thereof and
those prevailing at the date of actual payment by the Fourth Issuer; and

 

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

 

The above indemnity (and the indemnities given by
the Fourth Issuer in Clause 14.5 and Clause 15(l)) shall
constitute obligations of the Fourth Issuer separate and independent from its
obligations under the other provisions of these presents and the Fourth Issuer
Notes and shall apply irrespective of any indulgence granted by the Note
Trustee or the Noteholders from time to time and shall continue in full force
and effect notwithstanding the judgment or filing of any proof or proofs in any
bankruptcy, insolvency or liquidation of the Fourth Issuer for a liquidated sum
or sums in respect of amounts due under these presents (other than this
Clause).  Any such deficiency as
aforesaid shall be deemed to constitute a loss suffered by the Noteholders and
no proof or evidence of any actual loss shall be required by the Fourth Issuer
or its liquidator or liquidators.

 

21.                               ELIGIBILITY
AND DISQUALIFICATION; NEW NOTE TRUSTEE

 

21.1                        Eligibility
and Disqualification

 

This Deed shall always have a Note Trustee which
shall be eligible to act as Note Trustee under Sections 310(a)(1) and 310(a)(2)
of the Trust Indenture Act.  The Note
Trustee shall have a combined capital and surplus of at least U.S.$50,000,000
as set forth in its most recent published annual report of condition.  If the Note Trustee has or shall acquire any
conflicting interest within the meaning of Section 310(b) of the Trust
Indenture Act, the Note Trustee and the Fourth Issuer shall comply with the
provisions of Section 310(b) of the Trust Indenture Act; provided, however,
that there shall be excluded from the operation of Section 310(b)(1) of the
Trust Indenture Act any deed or deeds under which other securities or
certificates of interest or participation in other securities of the Fourth
Issuer are outstanding if the requirements for such exclusion set forth in
Section 310(b)(1) of the Trust Indenture Act are met.  If at any time the Note Trustee shall cease to be eligible in
accordance with the provisions of this Clause 21.1, the Note Trustee shall resign
promptly in the manner and with the effect specified in Clause 22.

 

21.2                        New
Note Trustee

 

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

 

31

 

as practicable
thereafter be notified by the Fourth Issuer to the Principal Paying Agent, the
Transfer Agent, the Registrar, the Noteholders and the Rating Agencies.

 

(b)                                 Any new trustee
must (i) meet the requirements of Section 26(a)(1) of the U.S. Investment
Company Act of 1940; (ii) not be an affiliate (as defined in Rule 405 of the
Securities Act) of the Fourth Issuer or of any person involved in the
organisation or operation of the Fourth Issuer; (iii) not offer or provide
credit or credit enhancement to the Fourth Issuer; and (iv) execute an
agreement or instrument concerning the Fourth Issuer Notes containing
provisions to the effect set forth in Section 26(a)(3) of the U.S. Investment
Company Act of 1940.

 

21.3                        Separate
and Co-Trustees

 

Notwithstanding the provisions of subclause
21.2 above, the Note Trustee may, upon giving prior notice to the
Fourth Issuer (but without requiring the consent of the Fourth Issuer or the
Noteholders), appoint any person established or resident in any jurisdiction
(whether a Trust Corporation or not) to act either as a separate trustee or as
a co-trustee jointly with the Note Trustee:

 

(a)                                  if the Note
Trustee considers such appointment to be in the interests of the Noteholders;

 

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

 

(c)                                  for the purposes
of obtaining a judgment in any jurisdiction or the enforcement in any
jurisdiction of either a judgment already obtained or any of the provisions of
these presents or any of the other Fourth Issuer Transaction Documents against
the Fourth Issuer or any other party thereto.

 

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

 

22.                               NOTE
TRUSTEE’S RETIREMENT AND REMOVAL

 

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

 

32

 

date of the notice of retirement of the Note
Trustee, then the retiring Note Trustee may appoint its own successor trustee
being a trust corporation.

 

23.                               NOTE
TRUSTEE’S POWERS TO BE ADDITIONAL

 

The powers conferred upon the Note Trustee by these
presents shall be in addition to any powers which may from time to time be
vested in the Note Trustee by the general law or as a holder of any of the
Fourth Issuer Notes.

 

24.                               NOTICES

 

24.1                           Any notice or
demand to the Fourth Issuer or the Note Trustee to be given, made or served for
any purposes under these presents shall be in writing and shall be given, made
or served by sending the same by pre-paid post (first class if inland, first
class airmail if overseas) or facsimile transmission or by delivering it by
hand to:

 

(a)                                  Fourth Issuer:

 

Permanent Financing (No. 4) PLC

Blackwell House

Guildhall Yard

London EC2V 5AE

 

For the attention of: the Directors

 

Facsimile: +44 (0) 20 7556 0975

 

With a copy to:

 

HBOS Treasury Services plc

33 Old Broad
Street

London EC2N 1HZ

 

For the attention of: Head of Mortgage
Securitisation and Covered Bonds

 

Facsimile: +44 (0) 20 7574 8784

 

(b)                                 Note Trustee:

 

The Bank of New York

One Canada
Square

London E14 5AL

 

For the attention of: Global Structured Finance -
Corporate Trust

 

Facsimile: + 44 (0) 20 7964 6061/6399

 

or to such other address or facsimile number as
shall have been notified (in accordance with this Clause) to the other party
hereto and any notice or demand sent by post as aforesaid shall be deemed to
have been given, made or served three days in the case of inland post or seven
days in the case of overseas post after despatch and any notice or demand sent
by facsimile transmission as aforesaid shall be deemed to have been given, made
or served on report of successful transmission.

 

33

 

24.2                        Communications
by Noteholders with Other Noteholders

 

Noteholders may communicate pursuant to Trust
Indenture Act Section 312(b) with other Noteholders with respect to their
rights under this Deed or the Fourth Issuer Notes.  The Fourth Issuer, the Note Trustee, the Principal Paying Agent,
the Registrar and anyone else shall have the protection of the Trust Indenture
Act Section 312(c).

 

24.3                        Notices
to Noteholders

 

Any notice or communication mailed to Noteholders
hereunder shall be transmitted by mail:

 

(a)                                  to all
Noteholders of Definitive Fourth Issuer Notes, as the names and addresses of
such Noteholders appear upon the Register; and

 

(b)                                 to such other
Noteholders as have, within the two years preceding such transmission, filed
their names and addresses with the Note Trustee for that purpose.

 

25.                               RIGHTS OF THIRD PARTIES

 

A person who is not a party to this Deed has no
right under the Contracts (Rights of Third Parties) Act 1999 to enforce any
term of this Deed, but this does not affect any right or remedy of a third
party which exists or is available apart from that Act.

 

26.                               TRUST INDENTURE ACT
PREVAILS

 

If any provision of this Deed limits, qualifies or
conflicts with another provision which is required to be included in this Deed
by, and is not subject to a contractual waiver under, the Trust Indenture Act,
the required provision of the Trust Indenture Act shall prevail.

 

27.                               CERTIFICATES AND
OPINIONS

 

27.1                        Certificate
and Opinions as to Conditions Precedent

 

Upon any request or application by the Fourth
Issuer to the Note Trustee to take any action under this Deed, the Fourth
Issuer shall furnish to the Note Trustee:

 

(a)                                  an Officers’
Certificate (which shall include the statements set forth in Clause
27.2
below) stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Deed or required by the Note Trustee
pursuant to the terms of this Deed relating to the proposed action have been
complied with; and

 

(b)                                 an Opinion of
Counsel (which shall include the statements set forth in Clause  27.2 below) stating that, in
the opinion of such counsel, all such conditions precedent, if any, provided
for in this Deed or required by the Note Trustee pursuant to the terms of this
Deed relating to the proposed action have been complied with.

 

27.2                        Statements
Required in Certificate and Opinion

 

Each certificate and opinion with respect to
compliance with a condition or covenant provided for in this Deed shall
include:

 

(a)                                  a statement that
the person making such certificate or opinion has read such covenant or
condition and the definitions relating thereto;

 

34

 

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

 

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

 

(d)                                 a statement as
to whether or not, in the opinion of such person, such covenant or condition
has been complied with.

 

28.                               GOVERNING LAW

 

These presents and the Fourth Issuer Notes are
governed by, and shall be construed in accordance with, English law.

 

29.                               COUNTERPARTS

 

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

 

30.                               SUBMISSION TO
JURISDICTION

 

Each party to this Deed hereby irrevocably submits
to the non-exclusive jurisdiction of the English courts in any action or
proceeding arising out of or relating to this Deed and hereby irrevocably
agrees that all claims in respect of such action or proceeding may be heard and
determined by such courts.  Each party
to this Deed hereby irrevocably waives, to the fullest extent it may possibly
do so, any defence or claim that the English courts are inconvenient forum for
the maintenance or hearing of such action or proceeding.

 

IN WITNESS WHEREOF this Deed has been executed as a deed by the Fourth Issuer and the Note
Trustee and delivered on the date first stated on page 1.

 

35

 

SCHEDULE 1

 

FORMS OF GLOBAL FOURTH
ISSUER NOTES

 

PART A

 

(1)

 

SERIES 1 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE NO. 1

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 1 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$500,000,000 Series 1
Class A Asset Backed Floating Rate Fourth Issuer Notes due March, 2005

 

(Initial aggregate principal amount of
Series 1 Class A Global Notes: U.S.$1,500,000,000)

 

This Series 1 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 1 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated 12th March, 2004 and signed for the purposes of identification by
Allen & Overy and Sidley Austin Brown & Wood (the Fourth
Issuer Master Definitions and Construction Schedule) (each as may be
amended and/or restated from time to time), and the Fourth Issuer Trust Deed
and this Fourth Issuer Global Note shall be construed in accordance with the
interpretation provisions set out in Clause 2 of the Fourth Issuer Master
Definitions and Construction Schedule. 
The aggregate principal amount from time to time of this Global Fourth
Issuer Note shall be that amount not exceeding U.S.$500,000,000 as shall be
shown by the latest entry duly made in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 1 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

36

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
five hundred million U.S. dollars (U.S.$500,000,000)) on the Interest Payment
Date falling in April 2004 (or on such earlier date as the said principal
amount may become repayable in accordance with the Conditions or the Fourth
Issuer Trust Deed) and to pay interest monthly or quarterly, as the case may
be, in arrear on each Interest Payment Date on the principal amount from time
to time of this Global Fourth Issuer Note at the rates determined in accordance
with the Conditions together with such other amounts (if any) as may be
payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the
portion of the principal amount hereof so exchanged or so purchased and
cancelled shall be endorsed by or on behalf of the Registrar on behalf of the
Fourth Issuer on Part Ii of the Schedule hereto, whereupon the principal amount
hereof shall be increased or, as the case may be, reduced for all purposes by
the amount so exchanged or so purchased and

 

37

 

cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed
by, and shall be construed in accordance with, the laws of England
and the Fourth Issuer has in the Fourth Issuer Trust Deed submitted to the non
exclusive jurisdiction of the courts of England for all purposes in connection
with this Fourth Issuer Global Note.

 

8.                                      Contracts (Rights of Third
Parties) Act 1999

 

No rights are conferred on any person under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Fourth Issuer Global Note,
but this does not affect any right or remedy of any person which exists or is
available apart from that Act.

 

38

 

IN WITNESS WHEREOF the Fourth
Issuer has caused this Global Fourth Issuer Note to be signed manually or in
facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  

 

Issued in London, England on 12th March, 2004.

 

39

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

40

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

41

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or 

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

42

 

PART A

 

(2)

 

SERIES 1 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE NO. 2

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 1 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$500,000,000 Series 1 Class A Asset Backed Floating Rate Fourth
Issuer Notes due March  2005

 

(Initial aggregate principal amount of
Series 1 Class A Global Notes: U.S.$1,500,000,000)

 

This Series 1 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 1 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated 12th March, 2004 and signed for the purposes of identification by
Allen & Overy and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and
Construction Schedule) (each as may be amended and/or restated from
time to time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global
Note shall be construed in accordance with the interpretation provisions set out
in Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$500,000,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The
Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 1 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
five hundred million U.S. dollars (U.S.$500,000,000)) on the Interest Payment

 

43

 

Date falling in April 2004 (or on such earlier date
as the said principal amount may become repayable in accordance with the
Conditions or the Fourth Issuer Trust Deed) and to pay interest monthly or
quarterly, as the case may be, in arrear on each Interest Payment Date on the
principal amount from time to time of this Global Fourth Issuer Note at the
rates determined in accordance with the Conditions together with such other
amounts (if any) as may be payable, all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the
portion of the principal amount hereof so exchanged or so purchased and
cancelled shall be endorsed by or on behalf of the Registrar on behalf of the
Fourth Issuer on Part Ii the Schedule hereto, whereupon the principal amount
hereof shall be increased or, as the case may be, reduced for all purposes by
the amount so exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this
Global Fourth Issuer Note for Definitive Fourth Issuer Notes, this Global
Fourth Issuer Note shall be surrendered to or to the order of the Registrar and
cancelled and, if the holder of this Global Fourth Issuer Note requests,
returned to it together with any relevant Definitive Fourth Issuer Notes.

 

44

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer
on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed
by, and shall be construed in accordance with, the laws of England and
the Fourth Issuer has in the Fourth Issuer Trust Deed submitted to the non
exclusive jurisdiction of the courts of England for all purposes in connection
with this Fourth Issuer Global Note.

 

8.                                      Contracts (Rights of Third
Parties) Act 1999

 

No rights are conferred on any person under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Fourth Issuer Global Note,
but this does not affect any right or remedy of any person which exists or is
available apart from that Act.

 

45

 

IN WITNESS WHEREOF
the Fourth Issuer has caused this Global Fourth Issuer Note to be signed
manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  

 

Issued in London, England on 12th March,
2004.

 

46

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty or liability.

 

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

47

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the Fourth

  Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

48

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal
  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on behalf
  of the Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

49

 

PART A

 

(3)

 

SERIES 1 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE NO. 3

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 1 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$500,000,000 Series 1 Class A Asset Backed Floating Rate Fourth
Issuer Notes due March 2005

 

(Initial aggregate principal amount of
Series 1 Class A Global Notes: U.S.$1,500,000,000)

 

This Series 1 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 1 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated 12th March, 2004 and signed for the purposes of identification by
Allen & Overy and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and
Construction Schedule) (each as may be amended and/or restated from
time to time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global
Note shall be construed in accordance with the interpretation provisions set
out in Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$500,000,000 as shall be shown by the latest entry duly made in
the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The
Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 1 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence of
entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the

 

50

 

date hereof five hundred million U.S. dollars
(U.S.$500,000,000)) on the Interest Payment Date falling in March 2005 (or on
such earlier date as the said principal amount may become repayable in
accordance with the Conditions or the Fourth Issuer Trust Deed) and to pay
interest monthly or quarterly, as the case may be, in arrear on each Interest
Payment Date on the principal amount from time to time of this Global Fourth
Issuer Note at the rates determined in accordance with the Conditions together
with such other amounts (if any) as may be payable, all subject to and in
accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In exchange
for this Global Fourth Issuer Note the Fourth Issuer will deliver, or procure
the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the
portion of the principal amount hereof so exchanged or so purchased and
cancelled shall be endorsed by or on behalf of the Registrar on behalf of the
Fourth Issuer on Part Ii of the Schedule hereto, whereupon the principal amount
hereof shall be increased or, as the case may be, reduced for all purposes by
the amount so exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this
Global Fourth Issuer Note for Definitive Fourth Issuer Notes, this Global
Fourth Issuer Note shall be surrendered to or to the order of the Registrar and
cancelled and, if the holder of this Global Fourth Issuer Note requests,
returned to it together with any relevant Definitive Fourth Issuer Notes.

 

51

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed
by, and shall be construed in accordance with, the laws of England and
the Fourth Issuer has in the Fourth Issuer Trust Deed submitted to the non
exclusive jurisdiction of the courts of England for all purposes in connection
with this Fourth Issuer Global Note.

 

8.                                      Contracts (Rights of Third
Parties) Act 1999

 

No rights are conferred on any person under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Fourth Issuer Global Note,
but this does not affect any right or remedy of any person which exists or is
available apart from that Act.

 

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  

 

52

 

	
   

  	
  (Duly authorised)

  	
   

  

 

Issued in London, England on 12th March,
2004.

 

53

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

54

 

THE SCHEDULE

 

PART 1

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

55

 

PART 2

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

 

	
  Date Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

56

 

PART B

 

SERIES 1 CLASS B GLOBAL FOURTH ISSUER NOTE

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 1 CLASS B GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$78,100,000 Series 1 Class B Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 1 Class B Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 1 Class B Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to seventy eight million
one hundred thousand U.S. dollars (U.S.) ($78,100,000) and constituted by a Fourth Issuer Trust Deed
dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated 12th
March, 2004 and signed for the purposes of identification by Allen & Overy
and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction Schedule.  The aggregate principal amount from time to
time of this Global Fourth Issuer Note shall be that amount not exceeding
U.S.$78,100,000 as shall be shown by the latest entry duly made in the Schedule
hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 1 Class B Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
seventy eight million one hundred thousand U.S. dollars (U.S.$78,100,000)) on
the Interest Payment Date falling in June 2042 (or on such earlier date as the
said principal amount may become repayable in accordance with the Conditions or
the Fourth Issuer Trust Deed) and to pay interest quarterly in arrear on each
Interest Payment Date on the principal amount from time to time of this Global
Fourth Issuer Note at the rates determined in accordance with the Conditions
together with such other amounts (if any) as may be payable,

 

57

 

all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the
portion of the principal amount hereof so exchanged or so purchased and
cancelled shall be endorsed by or on behalf of the Registrar on behalf of the
Fourth Issuer on Part Ii of the Schedule hereto, whereupon the principal amount
hereof shall be increased or, as the case may be, reduced for all purposes by
the amount so exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global
Fourth Issuer Note for Definitive Fourth Issuer Notes, this Global Fourth
Issuer Note shall be surrendered to or to the order of the Registrar and
cancelled and, if the holder of this Global Fourth Issuer Note requests,
returned to it together with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal

 

58

 

and interest in respect of Fourth Issuer Notes
represented by this Global Fourth Issuer Note will be made in accordance with
the Conditions.  Upon any payment of
principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed
by, and shall be construed in accordance with, the laws of England
and the Fourth Issuer has in the Fourth Issuer Trust Deed submitted to the non
exclusive jurisdiction of the courts of England for all purposes in connection
with this Fourth Issuer Global Note.

 

8.                                      Contracts (Rights of Third
Parties) Act 1999

 

No rights are conferred on any person under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Fourth Issuer Global Note,
but this does not affect any right or remedy of any person which exists or is
available apart from that Act.

 

59

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  

 

 

Issued in London, England on 12th March,
2004.

 

60

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

61

 

THE SCHEDULE

 

PART II

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

62

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

63

 

PART C

 

SERIES 1 CLASS M GLOBAL FOURTH ISSUER NOTE

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 1 CLASS M GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$56,500,000 Series 1 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 1 Class M Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 1 Class M Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to fifty six million five hundred thousand
U.S. dollars (U.S.$56,500,000) and constituted by a Fourth Issuer Trust Deed
dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated 12th
March, 2004 and signed for the purposes of identification by Allen & Overy
and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$56,500,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The
Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 1 Class M Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
fifty six million five hundred thousand U.S. dollars (U.S.$56,500,000) on the
Interest Payment Date falling in June 2042 (or on such earlier date as the said
principal amount may become repayable in accordance with the Conditions or the
Fourth Issuer Trust Deed) and to pay interest quarterly in arrear on each
Interest Payment Date on the principal amount from time to time of this Global
Fourth Issuer Note at the rates determined in accordance with the Conditions
together with such other amounts (if any) as may be payable,

 

64

 

all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any Paying
Agent is or will be required to make any deduction or withholding from any
payment in respect of the Fourth Issuer Notes which would not be required were
the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal

 

65

 

and interest in respect of Fourth Issuer Notes
represented by this Global Fourth Issuer Note will be made in accordance with
the Conditions.  Upon any payment of
principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed
by, and shall be construed in accordance with, the laws of England and
the Fourth Issuer has in the Fourth Issuer Trust Deed submitted to the non
exclusive jurisdiction of the courts of England for all purposes in connection
with this Fourth Issuer Global Note.

 

8.                                      Contracts (Rights of Third
Parties) Act 1999

 

No rights are conferred on any person under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Fourth Issuer Global Note,
but this does not affect any right or remedy of any person which exists or is
available apart from that Act.

 

66

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  

 

Issued in London, England on 12th March,
2004.

 

67

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

68

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

69

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

70

 

PART D

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE NO. 1

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$500,000,000 Series 1 Class C Asset Backed Floating Rate Fourth
Issuer Notes due March 2009

 

(Initial aggregate principal amount of
Series 2 Class A Global Notes: U.S.$2,400,000,000)

 

This Series 2 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 2 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated 12th March, 2004 and signed for
the purposes of identification by Allen & Overy and Sidley Austin Brown
& Wood (the Fourth Issuer Master Definitions and Construction Schedule)
(each as may be amended and/or restated from time to time), and the Fourth
Issuer Trust Deed and this Fourth Issuer Global Note shall be construed in
accordance with the interpretation provisions set out in Clause 2 of the Fourth
Issuer Master Definitions and Construction Schedule.  The aggregate principal amount from time to time of this Global
Fourth Issuer Note shall be that amount not exceeding U.S.$500,000,000 as shall
be shown by the latest entry duly made in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The
Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 1 Class C Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
five hundred million U.S. dollars (U.S.$500,000,000) on the Interest Payment
Date falling in June 2009 (or on such earlier date as the said principal amount
may become

 

71

 

repayable in accordance with the Conditions or the
Fourth Issuer Trust Deed) and to pay interest quarterly in arrear on each
Interest Payment Date on the principal amount from time to time of this Global
Fourth Issuer Note at the rates determined in accordance with the Conditions
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

72

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed
by, and shall be construed in accordance with, the laws of England and
the Fourth Issuer has in the Fourth Issuer Trust Deed submitted to the non
exclusive jurisdiction of the courts of England for all purposes in connection
with this Fourth Issuer Global Note.

 

8.                                      Contracts (Rights of Third
Parties) Act 1999

 

No rights are conferred on any person under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Fourth Issuer Global Note,
but this does not affect any right or remedy of any person which exists or is
available apart from that Act.

 

73

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global
Fourth Issuer Note to be signed manually or in facsimile by a person duly
authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March
  , 2004.

  

 

74

 

	
  Certificate of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly
  authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

75

 

THE SCHEDULE

 

PART II

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

76

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

77

 

PART D

 

(2)

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE NO. 2

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$500,000,000 Series 2 Class A Asset Backed Floating Rate

Fourth Issuer Notes due March 2009

 

(Initial aggregate principal amount of
Series 2 Class A Global Notes: U.S.$2,400,000,000)

 

This Series 2 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 2 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated and made on 12th March, 2004 and
signed for the purposes of identification by Allen & Overy and Sidley
Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$500,000,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The
Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 2 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the

 

78

 

date hereof five hundred million U.S. dollars
(U.S.$500,000,000) on the Interest Payment Date falling in March 2009 (or on
such earlier date as the said principal amount may become repayable in
accordance with the Conditions or the Fourth Issuer Trust Deed) and to pay
quarterly in arrear on each Interest Payment Date on the principal amount from
time to time of this Global Fourth Issuer Note at the rates determined in
accordance with the Conditions together with such other amounts (if any) as may
be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

79

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed
by, and shall be construed in accordance with, the laws of England and
the Fourth Issuer has in the Fourth Issuer Trust Deed submitted to the non
exclusive jurisdiction of the courts of England for all purposes in connection
with this Fourth Issuer Global Note.

 

8.                                      Contracts (Rights of Third
Parties) Act 1999

 

No rights are conferred on any person under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this temporary Global Note, but
this does not affect any right or remedy of any person which exists or is
available apart from that Act.

 

80

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global
Fourth Issuer Note to be signed manually or in facsimile by a person duly
authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March,
  2004.

  

 

81

 

	
  Certificate
  of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

82

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

83

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

84

 

PART D

 

(3)

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE NO. 3

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$500,000,000 Series 2
Class A Asset Backed Floating Rate

Fourth Issuer Notes due March 2009

 

(Initial aggregate principal amount of
Series 2 Class A Global Notes: U.S.$2,400,000,000)

 

This Series 2 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 2 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated and made on 12th March, 2004 and
signed for the purposes of identification by Allen & Overy and Sidley
Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction Schedule.  The aggregate principal amount from time to
time of this Global Fourth Issuer Note shall be that amount not exceeding
U.S.$500,000,000 as shall be shown by the latest entry duly made in the
Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 2 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

85

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
five hundred million U.S. dollars (U.S.$500,000,000) on the Interest Payment
Date falling in March 2009 (or on such earlier date as the said principal
amount may become repayable in accordance with the Conditions or the Fourth
Issuer Trust Deed) and to pay quarterly in arrear on each Interest Payment Date
on the principal amount from time to time of this Global Fourth Issuer Note at
the rates determined in accordance with the Conditions together with such other
amounts (if any) as may be payable, all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes effective
on or after the Fourth Issuer Closing Date, the Fourth Issuer or any Paying
Agent is or will be required to make any deduction or withholding from any
payment in respect of the Fourth Issuer Notes which would not be required were
the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be increased
or, as the case may be, reduced for all purposes by the amount so exchanged or
so purchased and cancelled and endorsed. 
Upon the exchange of the whole of this Global Fourth Issuer Note

 

86

 

for Definitive Fourth Issuer Notes, this Global
Fourth Issuer Note shall be surrendered to or to the order of the Registrar and
cancelled and, if the holder of this Global Fourth Issuer Note requests,
returned to it together with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

87

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global
Fourth Issuer Note to be signed manually or in facsimile by a person duly
authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March,
  2004.

  

 

88

 

	
  Certificate
  of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

89

 

THE SCHEDULE

 

PART II

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

90

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

91

 

PART D

 

(4)

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE NO. 4

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$500,000,000 Series 2 Class A Asset Backed Floating Rate

Fourth Issuer Notes due March 2009

 

(Initial aggregate principal amount of
Series 2 Class A Global Notes: U.S.$2,400,000,000)

 

This Series 2 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 2 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated and made on 12th March, 2004 and
signed for the purposes of identification by Allen & Overy and Sidley
Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$500,000,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 2 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the

 

92

 

date hereof five hundred million U.S. dollars
(U.S.$500,000,000) on the Interest Payment Date falling in March 2009 (or on
such earlier date as the said principal amount may become repayable in
accordance with the Conditions or the Fourth Issuer Trust Deed) and to pay
quarterly in arrear on each Interest Payment Date on the principal amount from
time to time of this Global Fourth Issuer Note at the rates determined in
accordance with the Conditions together with such other amounts (if any) as may
be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

93

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

94

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global
Fourth Issuer Note to be signed manually or in facsimile by a person duly
authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

95

 

	
  Certificate
  of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

96

 

THE SCHEDULE

 

PART III

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

97

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

98

 

PART D

 

(5)

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE NO. 5

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 2 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$400,000,000 Series 2 Class A Asset Backed Floating Rate

Fourth Issuer Notes due March 2009

 

(Initial aggregate principal amount of
Series 2 Class A Global Notes: U.S.$2,400,000,000)

 

This Series 2 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 2 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to four hundred million U.S. dollars
(U.S.$400,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular numbered
Condition) shall be to the Conditions (or that particular one of them) set out
in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated and made on 12th March, 2004 and
signed for the purposes of identification by Allen & Overy and Sidley
Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$400,000,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 2 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the

 

99

 

date hereof four hundred million U.S. dollars (U.S.$400,000,000) on the
Interest Payment Date falling in March 2009 (or on such earlier date as the
said principal amount may become repayable in accordance with the Conditions or
the Fourth Issuer Trust Deed) and to pay quarterly in arrear on each Interest
Payment Date on the principal amount from time to time of this Global Fourth
Issuer Note at the rates determined in accordance with the Conditions together
with such other amounts (if any) as may be payable, all subject to and in
accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the Noteholders,
of its intention to exchange this Global Fourth Issuer Note for Definitive
Fourth Issuer Notes on or after the Exchange Date (as defined below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant clearing
system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

100

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

101

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global
Fourth Issuer Note to be signed manually or in facsimile by a person duly
authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

102

 

	
  Certificate
  of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

103

 

THE SCHEDULE

 

PART IV

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

104

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

105

 

PART E

 

SERIES 2 CLASS B GLOBAL FOURTH ISSUER NOTE

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 2 CLASS B GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$100,700,000 Series 2 Class B Asset Backed Floating Rate Fourth
Issuer Notes due June 2042

 

This Series 2 Class B Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 2 Class B Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to one hundred million seven hundred thousand
U.S. dollars (U.S.$100,700,000) and constituted by a Fourth Issuer Trust Deed
dated 12th March (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated and
made on 12th March, 2004 and signed for the purposes of identification by Allen
& Overy and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and
Construction Schedule) (each as may be amended and/or restated from
time to time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global
Note shall be construed in accordance with the interpretation provisions set
out in Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$100,700,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 2 Class B Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only the
registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
one hundred million seven hundred thousand U.S. dollars (U.S.$100,700,000) on
the Interest Payment Date falling in June 2042 (or on such earlier date as the
said principal amount may become repayable in accordance with the Conditions or
the Fourth Issuer Trust Deed) and to pay interest quarterly in arrear on each
Interest Payment Date on the principal amount from time to time of this Global
Fourth Issuer Note at the rates determined in

 

106

 

accordance with the Conditions together with such
other amounts (if any) as may be payable, all subject to and in accordance with
the Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes effective
on or after the Fourth Issuer Closing Date, the Fourth Issuer or any Paying
Agent is or will be required to make any deduction or withholding from any
payment in respect of the Fourth Issuer Notes which would not be required were
the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Iiof the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions,

 

107

 

the Fourth Issuer Trust Deed and the Fourth Issuer
Deed of Charge.  Payments of principal
and interest in respect of Fourth Issuer Notes represented by this Global
Fourth Issuer Note will be made in accordance with the Conditions.  Upon any payment of principal or interest on
this Global Fourth Issuer Note the amount so paid shall be endorsed by or on
behalf of the Registrar on behalf of the Fourth Issuer on Part I of the
Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

108

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

109

 

	
  Certificate of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly
  authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  CITIBANK,
  N.A.

  as Registrar

  

 

110

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

111

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

112

 

PART F

 

SERIES 2 CLASS M GLOBAL FOURTH ISSUER NOTE

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 2 CLASS M GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$59,900,000 Series 2 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 2 Class M Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 2 Class M Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to fifty nine million nine hundred thousand
U.S. dollars (U.S.$59,900,000) and constituted by a Fourth Issuer Trust Deed
dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that particular
one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated and
made on 12th March, 2004 and signed for the purposes of identification by Allen
& Overy and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and
Construction Schedule) (each as may be amended and/or restated from
time to time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global
Note shall be construed in accordance with the interpretation provisions set
out in Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$59,900,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 2 Class M Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
fifty nine million nine hundred thousand U.S. dollars (U.S.$59,900,000) on the
Interest Payment Date falling in June 2042 (or on such earlier date as the said
principal amount may become repayable in accordance with the Conditions or the
Fourth Issuer Trust Deed) and to pay interest quarterly in arrear on each
Interest Payment Date on the principal amount from time to time of this Global
Fourth Issuer Note at the rates determined in

 

113

 

accordance with the Conditions together with such other
amounts (if any) as may be payable, all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth Issuer
Note (acting on the instructions of (a) holder(s) of (a) Book-Entry Interest(s)
(as defined in Section 3 hereof)) may give notice to the Fourth Issuer, and the
Fourth Issuer may give notice to the Note Trustee and the Noteholders, of its
intention to exchange this Global Fourth Issuer Note for Definitive Fourth
Issuer Notes on or after the Exchange Date (as defined below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or to
the order of the Registrar.  In exchange
for this Global Fourth Issuer Note the Fourth Issuer will deliver, or procure
the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Iiof the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions,

 

114

 

the Fourth Issuer Trust Deed and the Fourth Issuer
Deed of Charge.  Payments of principal
and interest in respect of Fourth Issuer Notes represented by this Global
Fourth Issuer Note will be made in accordance with the Conditions.  Upon any payment of principal or interest on
this Global Fourth Issuer Note the amount so paid shall be endorsed by or on
behalf of the Registrar on behalf of the Fourth Issuer on Part I of the
Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

115

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

116

 

	
  Certificate of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly
  authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  CITIBANK,
  N.A.

  as Registrar

  

 

117

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

118

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

119

 

PART F

 

SERIES 2 CLASS C GLOBAL FOURTH ISSUER NOTE

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 2 CLASS C GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$82,200,000 Series 2 Class C Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 2 Class C Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 2 Class C Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to eighty two million two hundred thousand
U.S. dollars (U.S.$82,200,000) and constituted by a Fourth Issuer Trust Deed
dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated and
made on 12th March, 2004 and signed for the purposes of identification by Allen
& Overy and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and
Construction Schedule) (each as may be amended and/or restated from
time to time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global
Note shall be construed in accordance with the interpretation provisions set
out in Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$82,200,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 2 Class C Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
eighty two million two hundred thousand U.S. dollars (U.S.$82,200,000) on the
Interest Payment Date falling in June 2042 (or on such earlier date as the said
principal amount may become repayable in accordance with the Conditions or the
Fourth Issuer Trust Deed) and to pay interest quarterly in arrear on each
Interest Payment Date on the principal amount from time to time of this Global
Fourth Issuer Note at the rates determined in accordance with the Conditions
together with such other amounts (if any) as may be payable,

 

120

 

all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Iiof the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal

 

121

 

and interest in respect of Fourth Issuer Notes
represented by this Global Fourth Issuer Note will be made in accordance with
the Conditions.  Upon any payment of
principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

122

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

123

 

	
  Certificate of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly
  authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  CITIBANK,
  N.A.

  as Registrar

  

 

124

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

125

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

126

 

PART G

 

(1)

 

SERIES 3 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE No. 1

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 3 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$500,000,000 Series 3 Class A Asset Backed Floating Rate

Fourth Issuer Notes due March 2024

 

(Initial aggregate principal amount of
Series 3 Class A Global Notes: U.S.$1,700,000,000)

 

This Series 3 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 3 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated and made on 12th March, 2004 and
signed for the purposes of identification by Allen & Overy and Sidley
Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$500,000,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The
Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 3 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the

 

127

 

date hereof fifteen hundred million U.S. dollars
(U.S.$500,000,000) on the Interest Payment Date falling in March 2024 (or on such
earlier date as the said principal amount may become repayable in accordance
with the Conditions or the Fourth Issuer Trust Deed) and to pay quarterly in
arrear on each Interest Payment Date on the principal amount from time to time
of this Global Fourth Issuer Note at the rates determined in accordance with
the Conditions together with such other amounts (if any) as may be payable, all
subject to and in accordance with the Conditions and the provisions of the Fourth
Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

128

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

129

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

130

 

	
  Certificate of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly
  authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  CITIBANK,
  N.A.

  as Registrar

  

 

131

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

132

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global Fourth
Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

133

 

PART G

 

(2)

 

SERIES 3 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE No. 2

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 3 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$500,000,000 Series 3 Class A Asset Backed Floating Rate

Fourth Issuer Notes due March 2024

 

(Initial aggregate principal amount of
Series 3 Class A Global Notes: U.S.$1,700,000,000)

 

This Series 3 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 3 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated and made on 12th March, 2004 and
signed for the purposes of identification by Allen & Overy and Sidley
Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$500,000,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The
Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 3 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the

 

134

 

date hereof five hundred million U.S. dollars
(U.S.$500,000,000) on the Interest Payment Date falling in March 2024 (or on such
earlier date as the said principal amount may become repayable in accordance
with the Conditions or the Fourth Issuer Trust Deed) and to pay quarterly in
arrear on each Interest Payment Date on the principal amount from time to time
of this Global Fourth Issuer Note at the rates determined in accordance with
the Conditions together with such other amounts (if any) as may be payable, all
subject to and in accordance with the Conditions and the provisions of the
Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

135

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

136

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

137

 

	
  Certificate of authentication

  
	
   

  
	
  This Global Fourth Issuer Note is duly
  authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  CITIBANK,
  N.A.

  as Registrar

  

 

138

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

139

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

140

 

PART G

 

(3)

 

SERIES 3 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE No. 3

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 3 CLASS A GLOBAL FOURTH ISSUER NOTE

 

representing up to

 

U.S.$500,000,000 Series 3 Class A Asset Backed Floating Rate

Fourth Issuer Notes due March 2024

 

(Initial aggregate principal amount of
Series 3 Class A Global Notes: U.S.$1,700,000,000

 

This Series 3 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 3 Class A Fourth Issuer Notes of Permanent Financing
(No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to five hundred million U.S. dollars
(U.S.$500,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated and made on 12th March, 2004 and
signed for the purposes of identification by Allen & Overy and Sidley
Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal amount
from time to time of this Global Fourth Issuer Note shall be that amount not
exceeding U.S.$500,000,000 as shall be shown by the latest entry duly made in
the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The
Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 3 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

9.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the

 

141

 

date hereof five hundred million U.S. dollars
(U.S.$500,000,000) on the Interest Payment Date falling in March 2024 (or on
such earlier date as the said principal amount may become repayable in
accordance with the Conditions or the Fourth Issuer Trust Deed) and to pay
quarterly in arrear on each Interest Payment Date on the principal amount from
time to time of this Global Fourth Issuer Note at the rates determined in accordance
with the Conditions together with such other amounts (if any) as may be
payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

10.                               Exchange
for Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

142

 

11.                               Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

12.                               DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

13.                               Tax
Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

14.                               Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

15.                               Governing
law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

16.                               Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

143

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  

 

Issued in London, England on 12th March, 2004.

 

144

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated
without recourse,
warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  	
   

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

145

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

146

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

147

 

PART G

 

(4)

 

SERIES 3 CLASS A GLOBAL FOURTH ISSUER NOTE

 

NOTE No. 4

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 3 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$200,000,000 Series 3 Class A Asset Backed Floating Rate

Fourth Issuer Notes due March 2024

 

(Initial aggregate principal amount of
Series 3 Class A Global Notes: U.S.$1,700,000,000

 

This Series 3 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 3 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to two hundred million U.S. dollars
(U.S.$200,000,000) and constituted by a Fourth Issuer Trust Deed dated 12th
March, 2004 (the Fourth Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated and made on 12th March, 2004 and
signed for the purposes of identification by Allen & Overy and Sidley
Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$200,000,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The
Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 3 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the

 

148

 

date hereof two hundred million U.S. dollars
(U.S.$200,000,000) on the Interest Payment Date falling in March 2024 (or on
such earlier date as the said principal amount may become repayable in accordance
with the Conditions or the Fourth Issuer Trust Deed) and to pay quarterly in
arrear on each Interest Payment Date on the principal amount from time to time
of this Global Fourth Issuer Note at the rates determined in accordance with
the Conditions together with such other amounts (if any) as may be payable, all
subject to and in accordance with the Conditions and the provisions of the
Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any Paying
Agent is or will be required to make any deduction or withholding from any
payment in respect of the Fourth Issuer Notes which would not be required were
the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

149

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

150

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  

 

Issued in London, England on 12th March, 2004.

 

151

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated
without recourse,
warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  	
   

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

152

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

153

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount exchanged

  for Definitive

  Fourth Issuer

  Notes

  	
   

  	
  Part of principal

  amount purchased

  and cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made on

  behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

154

 

PART H

 

SERIES 3 CLASS B GLOBAL FOURTH ISSUER NOTE

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 3 CLASS B GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$75,800,000 Series 3 Class B Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 3 Class B Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 3 Class B Fourth Issuer Notes of Permanent Financing
(No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to seventy five million eight hundred thousand
U.S. dollars (U.S.$75,800,000) and constituted by a Fourth Issuer Trust Deed
dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated and
made on 12th March, 2004 and signed for the purposes of identification by Allen
& Overy and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and
Construction Schedule) (each as may be amended and/or restated from
time to time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global
Note shall be construed in accordance with the interpretation provisions set
out in Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$75,800,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 3 Class B Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
seventy five million eight hundred thousand U.S. dollars (U.S.$75,800,000) on
the Interest Payment Date falling in June 2042 (or on such earlier date as the
said principal amount may become repayable in accordance with the Conditions or
the Fourth Issuer Trust Deed) and to pay interest quarterly in arrear on each
Interest Payment Date on the principal amount from time to time of this Global
Fourth Issuer Note at the rates determined in accordance with the Conditions
together with such other amounts (if any) as may be payable,

 

155

 

all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal

 

156

 

and interest in respect of Fourth Issuer Notes
represented by this Global Fourth Issuer Note will be made in accordance with
the Conditions.  Upon any payment of
principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts (Rights
of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

157

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

158

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty
or liability.

 

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

159

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

160

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

161

 

PART I

 

SERIES 3 CLASS M GLOBAL FOURTH ISSUER NOTE

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 3 CLASS M GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$40,400,000 Series 3 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 3 Class M Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 3 Class M Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to forty million four hundred thousand U.S.
dollars (U.S.$40,400,000) and constituted by a Fourth Issuer Trust Deed dated
12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that particular
one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated and
made on 12th March, 2004 and signed for the purposes of identification by Allen
& Overy and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and
Construction Schedule) (each as may be amended and/or restated from
time to time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global
Note shall be construed in accordance with the interpretation provisions set
out in Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$40,400,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 3 Class M Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
forty million four hundred thousand U.S. dollars (U.S.$40,400,000) on the
Interest Payment Date falling in June 2042 (or on such earlier date as the said
principal amount may become repayable in accordance with the Conditions or the
Fourth Issuer Trust

 

162

 

Deed) and to pay interest quarterly in arrear on
each Interest Payment Date on the principal amount from time to time of this
Global Fourth Issuer Note at the rates determined in accordance with the
Conditions together with such other amounts (if any) as may be payable, all
subject to and in accordance with the Conditions and the provisions of the
Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the holder
of this Global Fourth Issuer Note requests, returned to it together with any
relevant Definitive Fourth Issuer Notes.

 

163

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

164

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

165

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

166

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global Fourth
Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

167

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

168

 

PART I

 

SERIES 3 CLASS C GLOBAL FOURTH ISSUER NOTE

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 3 CLASS C GLOBAL FOURTH ISSUER NOTE

representing up to

 

U.S.$55,400,000 Series 3 Class C Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 3 Class C Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly authorised
issue of Series 3 Class C Fourth Issuer Notes of Permanent Financing (No. 4) PLC
(the Fourth
Issuer), designated as specified in the title hereof (the Fourth
Issuer Notes), limited to the aggregate principal amount of up to
fifty five million four hundred thousand U.S. dollars (U.S.$55,400,000) and
constituted by a Fourth Issuer Trust Deed dated 12th March, 2004 (the Fourth
Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated and made on 12th March, 2004 and
signed for the purposes of identification by Allen & Overy and Sidley
Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding U.S.$55,400,000 as shall be shown by the latest entry duly made
in the Schedule hereto.

 

This is to certify that:

 

Cede & Co. as nominee on behalf of The Depositary Trust Company

 

is/are the duly registered holder(s) of
one of the Series 3 Class C Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
fifty five million four hundred thousand U.S. dollars (U.S.$55,400,000) on the
Interest Payment Date falling in June 2042 (or on such earlier date as the said
principal amount may become repayable in accordance with the Conditions or the
Fourth Issuer Trust Deed) and to pay interest quarterly in arrear on each
Interest Payment Date on the principal amount from time to time of this Global
Fourth Issuer Note at the rates determined in accordance with the Conditions
together with such other amounts (if any) as may be payable,

 

169

 

all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
The Depositary Trust Company (DTC) has notified the Fourth Issuer that it
is at any time unwilling or unable to continue as holder of this Global Fourth
Issuer Note or is at any time unwilling or unable to continue as, or ceases to
be, a clearing agency under the United States Securities Exchange Act of 1934,
as amended (the Exchange Act), and a successor to DTC registered as a clearing
agency under the Exchange Act is not able to be appointed by the Fourth Issuer
within 90 days of such notification, or (ii) as a result of any amendment to,
or change in, the laws or regulations of the United Kingdom (or of any
political subdivision thereof), or of any authority therein or thereof having
power to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Fourth Issuer Closing Date, the Fourth Issuer or any
Paying Agent is or will be required to make any deduction or withholding from
any payment in respect of the Fourth Issuer Notes which would not be required
were the relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of U.S.$1,000 or U.S.$10,000 each, or any integral multiple
thereof, or in such other denominations as the Note Trustee shall determine and
notify to the relevant Noteholders, in exchange for the whole of this Global
Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes, this Global Fourth Issuer Note shall be
surrendered to or to the order of the Registrar and cancelled and, if the
holder of this Global Fourth Issuer Note requests, returned to it together with
any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal

 

170

 

and interest in respect of Fourth Issuer Notes
represented by this Global Fourth Issuer Note will be made in accordance with
the Conditions.  Upon any payment of
principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part I of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      DTC

 

References herein to DTC shall be deemed to include
references to any other clearing system approved by the Note Trustee.

 

5.                                      Tax Treatment

 

The Fourth Issuer will treat this Global Fourth
Issuer Note as indebtedness for U.S. federal income tax purposes.  Each Holder, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as indebtedness.

 

6.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

7.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

8.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

171

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

172

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

173

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

174

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

	
  Date
  Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
  U.S.$

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

175

 

PART J

 

SERIES 4 CLASS A GLOBAL FOURTH ISSUER NOTE

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 4 CLASS A GLOBAL FOURTH ISSUER NOTE

representing up to

 

€1,500,000,000
Series 4 Class A Asset Backed Floating Rate Fourth Issuer Notes due June 2034

 

This Series 4 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 4 Class A Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to one billion five hundred million euro (€1,500,000,000)
and constituted by a Fourth Issuer Trust Deed dated 12th March, 2004 (the Fourth
Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated 12th March, 2004 and signed for
the purposes of identification by Allen & Overy and Sidley Austin Brown
& Wood (the Fourth Issuer Master Definitions and Construction Schedule)
(each as may be amended and/or restated from time to time), and the Fourth
Issuer Trust Deed and this Fourth Issuer Global Note shall be construed in
accordance with the interpretation provisions set out in Clause 2 of the Fourth
Issuer Master Definitions and Construction Schedule.  The aggregate principal amount from time to time of this Global
Fourth Issuer Note shall be that amount not exceeding €1,500,000,000 as shall
be shown by the latest entry duly made in the Schedule hereto.

 

This is to certify that:

 

Citivic Nominees Limited as nominee on behalf of the Common Depositary

 

is/are the duly registered holder(s) of
one of the Series 4 Class A Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

176

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
one billion five hundred million euro (€1,500,000,000) on the Interest Payment
Date falling in June 2034
(or on such earlier date as the said principal amount may become repayable in
accordance with the Conditions or the Fourth Issuer Trust Deed) and to pay
interest quarterly, as the case may be, in arrear on each Interest Payment Date
on the principal amount from time to time of this Global Fourth Issuer Note at
the rates determined in accordance with Conditions together with such other
amounts (if any) as may be payable, all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
both Euroclear Bank S.A./N.V., as operator of the Euroclear System (Euroclear)
and Clearstream Banking, société anonyme (Clearstream, Luxembourg) are closed for
business for a continuous period of 14 days (other than by reason of holiday,
statutory or otherwise) or announce an intention permanently to cease business
or do so and no alternative clearing system satisfactory to the Note Trustee is
then available, or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision thereof),
or of any authority therein or thereof having power to tax, or in the
interpretation or administration by a revenue authority or a court or
administration of such laws or regulations which becomes effective on or after
the Fourth Issuer Closing Date, the Fourth Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Fourth Issuer Notes which would not be required were the
relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in denominations
of €500,000 each, or any integral multiple thereof, or in such other
denominations (which must be higher than €500,000) as the Note Trustee shall
determine and notify to the relevant Noteholders, in exchange for the whole of
this Global Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note

 

177

 

for Definitive Fourth Issuer Notes this Global
Fourth Issuer Note shall be surrendered to or to the order of the Registrar and
cancelled and, if the holder of this Global Fourth Issuer Note requests,
returned to it together with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      Euroclear and
Clearstream, Luxembourg

 

References herein to Euroclear and/or Clearstream,
Luxembourg shall be deemed to include references to any other clearing system
approved by the Note Trustee.

 

5.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

6.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

7.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

178

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

179

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

180

 

THE SCHEDULE

 

PART II

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

181

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

182

 

PART K

 

SERIES 4 CLASS B GLOBAL FOURTH ISSUER NOTE

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 4 CLASS B GLOBAL FOURTH ISSUER NOTE

representing up to

 

€85,000,000 Series 4 Class B Asset Backed Floating Rate Fourth Issuer Notes due
June 2042

 

This Series 4 Class B Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 4 Class B Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to eighty five million euro (€85,000,000) and
constituted by a Fourth Issuer Trust Deed dated 12th March, 2004 (the Fourth
Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated 12th March, 2004 and signed for
the purposes of identification by Allen & Overy and Sidley Austin Brown
& Wood (the Fourth Issuer Master Definitions and Construction Schedule)
(each as may be amended and/or restated from time to time), and the Fourth
Issuer Trust Deed and this Fourth Issuer Global Note shall be construed in
accordance with the interpretation provisions set out in Clause 2 of the Fourth
Issuer Master Definitions and Construction Schedule.  The aggregate principal amount from time to time of this Global
Fourth Issuer Note shall be that amount not exceeding €85,000,000 as shall be shown by the latest entry duly made in
the Schedule hereto.

 

This is to certify that:

 

Citivic Nominees Limited as nominee on behalf of the Common Depositary

 

is/are the duly registered holder(s) of
one Series 4 Class B Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence of entitlement
only.  Title to the Global Fourth Issuer
Notes passes only on due registration in the Register and only the registered
holder is entitled to payment in respect of this Global Fourth Issuer Note.

 

183

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
eighty five million euro (€85,000,000) on the Interest Payment Date falling in
June 2042 (or on such earlier date as the said principal amount may become
repayable in accordance with the Conditions or the Fourth Issuer Trust Deed)
and to pay interest quarterly in arrear on each Interest Payment Date on the
principal amount from time to time of this Global Fourth Issuer Note at the
rates determined in accordance with Conditions together with such other amounts
(if any) as may be payable, all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
both Euroclear Bank S.A./N.V., as operator of the Euroclear System (Euroclear)
and Clearstream Banking, société anonyme (Clearstream, Luxembourg) are closed for
business for a continuous period of 14 days (other than by reason of holiday,
statutory or otherwise) or announce an intention permanently to cease business
or do so and no alternative clearing system satisfactory to the Note Trustee is
then available, or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision thereof),
or of any authority therein or thereof having power to tax, or in the
interpretation or administration by a revenue authority or a court or
administration of such laws or regulations which becomes effective on or after
the Fourth Issuer Closing Date, the Fourth Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Fourth Issuer Notes which would not be required were the
relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of €500,000 each, or any integral multiple thereof, or in such
other denominations (which must be higher than €500,000) as the Note Trustee
shall determine and notify to the relevant Noteholders, in exchange for the
whole of this Global Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes this Global Fourth Issuer Note, shall be
surrendered to or to

 

184

 

the order of the Registrar and cancelled and, if
the holder of this Global Fourth Issuer Note requests, returned to it together
with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      Euroclear and
Clearstream, Luxembourg

 

References herein to Euroclear and/or Clearstream,
Luxembourg shall be deemed to include references to any other clearing system
approved by the Note Trustee.

 

5.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

6.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

7.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

185

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

186

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

187

 

THE SCHEDULE

 

PART III

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

188

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date
  Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  	 

	 
	
   

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

																					

 

189

 

PART L

 

SERIES 4 CLASS M GLOBAL FOURTH ISSUER NOTE

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 4 CLASS M GLOBAL FOURTH ISSUER NOTE

representing up to

 

€62,500,000 Series 4 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 4 Class M Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 4 Class M Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to sixty two million five hundred thousand
euro (€62,500,000) and constituted by a Fourth Issuer Trust Deed
dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated 25th
November and signed for the purposes of identification by Allen & Overy and
Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding €62,500,000 as shall be shown by the latest entry duly made in the Schedule hereto.

 

This is to certify that:

 

Citivic Nominees Limited as nominee on behalf of the Common Depositary

 

is/are the duly registered holder(s) of
one of the Series 4 Class M Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

190

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
sixty two million five hundred thousand euro (€62,500,000) on the Interest
Payment Date falling in June 2042 (or on such earlier date as the said
principal amount may become repayable in accordance with the Conditions or the
Fourth Issuer Trust Deed) and to pay interest quarterly in arrear on each
Interest Payment Date on the principal amount from time to time of this Global
Fourth Issuer Note at the rates determined in accordance with Conditions
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
both Euroclear Bank S.A./N.V., as operator of the Euroclear System (Euroclear)
and Clearstream Banking, société anonyme (Clearstream, Luxembourg) are closed for
business for a continuous period of 14 days (other than by reason of holiday,
statutory or otherwise) or announce an intention permanently to cease business
or do so and no alternative clearing system satisfactory to the Note Trustee is
then available, or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision thereof),
or of any authority therein or thereof having power to tax, or in the
interpretation or administration by a revenue authority or a court or
administration of such laws or regulations which becomes effective on or after
the Fourth Issuer Closing Date, the Fourth Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Fourth Issuer Notes which would not be required were the
relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of €500,000 each, or any integral multiple thereof, or in such
other denominations (which must be higher than €500,000) as the Note Trustee
shall determine and notify to the relevant Noteholders, in exchange for the
whole of this Global Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note
for Definitive Fourth Issuer Notes this Global Fourth Issuer Note, shall be
surrendered to or to 

 

191

 

the order of the Registrar and cancelled and, if
the holder of this Global Fourth Issuer Note requests, returned to it together
with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      Euroclear and
Clearstream, Luxembourg

 

References herein to Euroclear and/or Clearstream,
Luxembourg shall be deemed to include references to any other clearing system
approved by the Note Trustee.

 

5.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

6.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

7.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

192

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

193

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated
without recourse,
warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  	
   

  
	
  for and on behalf of

  	
   

  
	
  CITIBANK, N.A.

  	
   

  
	
  as Registrar

  	
   

  

 

194

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

195

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

196

 

PART M

 

SERIES 5 CLASS A1 GLOBAL FOURTH ISSUER NOTE

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 5 CLASS A1 GLOBAL FOURTH ISSUER NOTE

representing up to

 

€750,000,000 Series 5 Class A Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 5 Class A Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 5 Class A1 Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to seven hundred and fifty million euro (€750,000,000) and constituted by a
Fourth Issuer Trust Deed dated 12th March, 2004 (the Fourth Issuer Trust Deed)
between the Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated 12th
March, 2004 and signed for the purposes of identification by Allen & Overy
and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding €750,000,000 as shall be shown by the latest entry duly made in the
Schedule hereto.

 

This is to certify that:

 

Citivic Nominees Limited as nominee on behalf of the Common Depositary

 

is/are the duly registered holder(s) of
one of the Series 5 Class A1 Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global
Fourth Issuer Note.

 

197

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
seven hundred and fifty million euro (€750,000,000) on the Interest Payment
Date falling in June 2042
(or on such earlier date as the said principal amount may become repayable in
accordance with the Conditions or the Fourth Issuer Trust Deed) and to pay
interest annually or quarterly, as the case may be, in arrear on each Interest
Payment Date on the principal amount from time to time of this Global Fourth
Issuer Note at the rates determined in accordance with Conditions together with
such other amounts (if any) as may be payable, all subject to and in accordance
with the Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
both Euroclear Bank S.A./N.V., as operator of the Euroclear System (Euroclear)
and Clearstream Banking, société anonyme (Clearstream, Luxembourg) are closed for
business for a continuous period of 14 days (other than by reason of holiday,
statutory or otherwise) or announce an intention permanently to cease business
or do so and no alternative clearing system satisfactory to the Note Trustee is
then available, or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision thereof),
or of any authority therein or thereof having power to tax, or in the
interpretation or administration by a revenue authority or a court or
administration of such laws or regulations which becomes effective on or after
the Fourth Issuer Closing Date, the Fourth Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Fourth Issuer Notes which would not be required were the
relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of €500,000 each, or any integral multiple thereof, or in such
other denominations (which must be higher than €500,000) as the Note Trustee
shall determine and notify to the relevant Noteholders, in exchange for the
whole of this Global Fourth Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the portion
of the principal amount hereof so exchanged or so purchased and cancelled shall
be endorsed by or on behalf of the Registrar on behalf of the Fourth Issuer on
Part Ii of the Schedule hereto, whereupon the principal amount hereof shall be
increased or, as the case may be, reduced for all purposes by the amount so
exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this Global Fourth Issuer Note

 

198

 

for Definitive Fourth Issuer Notes this Global
Fourth Issuer Note shall be surrendered to or to the order of the Registrar and
cancelled and, if the holder of this Global Fourth Issuer Note requests,
returned to it together with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      Euroclear and
Clearstream, Luxembourg

 

References herein to Euroclear and/or Clearstream,
Luxembourg shall be deemed to include references to any other clearing system
approved by the Note Trustee.

 

5.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

6.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

7.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

199

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

200

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated
without recourse,
warranty or liability.

 

 

	
   

  	
   

  
	
  Duly authorised

  	
   

  
	
  for and on behalf of

  	
   

  
	
  CITIBANK, N.A.

  	
   

  
	
  as Registrar

  	
   

  

 

201

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

202

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
  €

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

203

 

PART N

 

SERIES 5 CLASS A2 GLOBAL FOURTH ISSUER NOTE

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 5 CLASS A2 GLOBAL FOURTH ISSUER NOTE

representing up to

 

£600,000,000 Series 5 Class A2 Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 5 Class A2 Global Fourth
Issuer Note is issued without principal or interest coupons in respect of a
duly authorised issue of Series 5 Class A2 Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to six hundred million pounds sterling
(£600,000,000) and constituted by a Fourth Issuer Trust Deed dated [•], 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated [•], 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated [•], 2004 and signed for the purposes of identification by Allen &
Overy and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and
Construction Schedule) (each as may be amended and/or restated from
time to time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global
Note shall be construed in accordance with the interpretation provisions set
out in Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding £600,000,000 as shall be shown by the latest entry duly made in the
Schedule hereto.

 

This is to certify that:

 

Citivic Nominees Limited as nominee on behalf of the Common Depositary

 

is/are the duly registered holder(s) of
one of the Series 5 Class A2 Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the Global
Fourth Issuer Notes passes only on due registration in the Register and only
the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

204

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
six hundred million pounds sterling (£600,000,000) on the Interest Payment Date
falling in June 2042
(or on such earlier date as the said principal amount may become repayable in
accordance with the Conditions or the Fourth Issuer Trust Deed) and to pay
interest quarterly, as the case may be, in arrear on each Interest Payment Date
on the principal amount from time to time of this Global Fourth Issuer Note at
the rates determined in accordance with Conditions together with such other
amounts (if any) as may be payable, all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for Definitive
Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
both Euroclear Bank S.A./N.V., as operator of the Euroclear System (Euroclear)
and Clearstream Banking, société anonyme (Clearstream, Luxembourg) are closed for
business for a continuous period of 14 days (other than by reason of holiday,
statutory or otherwise) or announce an intention permanently to cease business
or do so and no alternative clearing system satisfactory to the Note Trustee is
then available, or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision thereof),
or of any authority therein or thereof having power to tax, or in the
interpretation or administration by a revenue authority or a court or
administration of such laws or regulations which becomes effective on or after
the Fourth Issuer Closing Date, the Fourth Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Fourth Issuer Notes which would not be required were the
relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of £1,000 or £10,000 each, or any integral multiple thereof, or
in such other denominations as the Note Trustee shall determine and notify to
the relevant Noteholders, in exchange for the whole of this Global Fourth
Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the
portion of the principal amount hereof so exchanged or so purchased and cancelled
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto, whereupon the principal amount hereof
shall be increased or, as the case may be, reduced for all purposes by the
amount so exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this
Global Fourth Issuer Note

 

205

 

for Definitive Fourth Issuer Notes this Global
Fourth Issuer Note shall be surrendered to or to the order of the Registrar and
cancelled and, if the holder of this Global Fourth Issuer Note requests,
returned to it together with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      Euroclear and
Clearstream, Luxembourg

 

References herein to Euroclear and/or Clearstream,
Luxembourg shall be deemed to include references to any other clearing system
approved by the Note Trustee.

 

5.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

6.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

7.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

206

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

207

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated
without recourse,
warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  	
   

  
	
  for and on behalf of

  	
   

  
	
  CITIBANK, N.A.

  	
   

  
	
  as Registrar

  	
   

  

 

208

 

THE SCHEDULE

 

PART IV

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

209

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

210

 

PART O

 

SERIES 5 CLASS B GLOBAL FOURTH ISSUER NOTE

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 5 CLASS B GLOBAL FOURTH ISSUER NOTE

representing up to

 

£43,000,000 Series 5 Class B Asset Backed Floating Rate Fourth Issuer Notes due
June 2042

 

This Series 5 Class B Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 5 Class B Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to forty three million pounds sterling (£43,000,000)
and constituted by a Fourth Issuer Trust Deed dated 12th March, 2004 (the Fourth
Issuer Trust Deed) between the Fourth Issuer and The Bank of
New York, as trustee (the trustee for the time being thereof being
herein called the Note Trustee).  References herein to the Conditions (or to any particular numbered
Condition) shall be to the Conditions (or that particular one of them) set out
in Schedule 3 to the Fourth Issuer Trust Deed. 
Terms used but not defined herein have the meanings ascribed to them in
the amended and restated master definitions and construction schedule signed by
the parties to the Transaction Documents and dated 12th March, 2004 (the Master
Definitions and Construction Schedule) and the fourth issuer master
definitions and construction schedule, dated 12th March, 2004 and signed for
the purposes of identification by Allen & Overy and Sidley Austin Brown
& Wood (the Fourth Issuer Master Definitions and Construction Schedule)
(each as may be amended and/or restated from time to time), and the Fourth
Issuer Trust Deed and this Fourth Issuer Global Note shall be construed in
accordance with the interpretation provisions set out in Clause 2 of the Fourth
Issuer Master Definitions and Construction Schedule.  The aggregate principal amount from time to time of this Global
Fourth Issuer Note shall be that amount not exceeding £43,000,000 as shall be shown by the latest entry duly made in
the Schedule hereto.

 

This is to certify that:

 

Citivic Nominees Limited as nominee on behalf of the Common Depositary

 

is/are the duly registered holder(s) of
one Series 5 Class B Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence of entitlement
only.  Title to the Global Fourth Issuer
Notes passes only on due registration in the Register and only the registered
holder is entitled to payment in respect of this Global Fourth Issuer Note.

 

211

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
forty three million pounds sterling (£43,000,000) on the Interest Payment Date
falling in June 2042 (or on such earlier date as the said principal amount may
become repayable in accordance with the Conditions or the Fourth Issuer Trust
Deed) and to pay interest quarterly in arrear on each Interest Payment Date on
the principal amount from time to time of this Global Fourth Issuer Note at the
rates determined in accordance with Conditions together with such other amounts
(if any) as may be payable, all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
both Euroclear Bank S.A./N.V., as operator of the Euroclear System (Euroclear)
and Clearstream Banking, société anonyme (Clearstream, Luxembourg) are closed for
business for a continuous period of 14 days (other than by reason of holiday,
statutory or otherwise) or announce an intention permanently to cease business
or do so and no alternative clearing system satisfactory to the Note Trustee is
then available, or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision thereof),
or of any authority therein or thereof having power to tax, or in the
interpretation or administration by a revenue authority or a court or
administration of such laws or regulations which becomes effective on or after
the Fourth Issuer Closing Date, the Fourth Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Fourth Issuer Notes which would not be required were the
relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of £1,000 each, or any integral multiple thereof, or in such
other denominations or £10,000 as the Note Trustee shall determine and notify
to the relevant Noteholders, in exchange for the whole of this Global Fourth
Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the
portion of the principal amount hereof so exchanged or so purchased and
cancelled shall be endorsed by or on behalf of the Registrar on behalf of the
Fourth Issuer on Part Ii of the Schedule hereto, whereupon the principal amount
hereof shall be increased or, as the case may be, reduced for all purposes by
the amount so exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this
Global Fourth Issuer Note for Definitive Fourth Issuer Notes this Global Fourth
Issuer Note, shall be surrendered to or to 

 

212

 

the order of the Registrar and cancelled and, if
the holder of this Global Fourth Issuer Note requests, returned to it together
with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      Euroclear and
Clearstream, Luxembourg

 

References herein to Euroclear and/or Clearstream,
Luxembourg shall be deemed to include references to any other clearing system
approved by the Note Trustee.

 

5.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

6.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

7.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

213

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

214

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated
without recourse,
warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  	
   

  
	
  for and on behalf of

  	
   

  
	
  CITIBANK, N.A.

  	
   

  
	
  as Registrar

  	
   

  

 

215

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

216

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

217

 

PART P

 

SERIES 5 CLASS M GLOBAL FOURTH ISSUER NOTE

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 5 CLASS M GLOBAL FOURTH ISSUER NOTE

representing up to

 

£32,000,000 Series 5 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 5 Class M Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 5 Class M Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to thirty two million pounds sterling (£32,000,000) and constituted by a Fourth Issuer Trust Deed
dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the
Fourth Issuer and The Bank of New York, as trustee (the
trustee for the time being thereof being herein called the Note Trustee).  References herein to the Conditions (or to
any particular numbered Condition) shall be to the Conditions (or that
particular one of them) set out in Schedule 3 to the Fourth Issuer Trust Deed.  Terms used but not defined herein have the
meanings ascribed to them in the amended and restated master definitions and
construction schedule signed by the parties to the Transaction Documents and
dated 12th March, 2004 (the Master Definitions and Construction Schedule)
and the fourth issuer master definitions and construction schedule, dated 12th
March and signed for the purposes of identification by Allen & Overy and
Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and Construction
Schedule) (each as may be amended and/or restated from time to
time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global Note
shall be construed in accordance with the interpretation provisions set out in
Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding £32,000,000 as shall be shown by the latest entry duly made in the Schedule hereto.

 

This is to certify that:

 

Citivic Nominees Limited as nominee on behalf of the Common Depositary

 

is/are the duly
registered holder(s) of one of the Series 5 Class M Global Fourth Issuer
Notes.  This Global Fourth Issuer Note
is evidence of entitlement only.  Title
to the Global Fourth Issuer Notes passes only on due registration in the
Register and only the registered holder is entitled to payment in respect of
this Global Fourth Issuer Note.

 

218

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
thirty two million pounds sterling (£32,000,000) on the Interest Payment Date
falling in June 2042 (or on such earlier date as the said principal amount may
become repayable in accordance with the Conditions or the Fourth Issuer Trust
Deed) and to pay interest quarterly in arrear on each Interest Payment Date on
the principal amount from time to time of this Global Fourth Issuer Note at the
rates determined in accordance with Conditions together with such other amounts
(if any) as may be payable, all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
both Euroclear Bank S.A./N.V., as operator of the Euroclear System (Euroclear)
and Clearstream Banking, société anonyme (Clearstream, Luxembourg) are closed for
business for a continuous period of 14 days (other than by reason of holiday,
statutory or otherwise) or announce an intention permanently to cease business
or do so and no alternative clearing system satisfactory to the Note Trustee is
then available, or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision thereof),
or of any authority therein or thereof having power to tax, or in the
interpretation or administration by a revenue authority or a court or
administration of such laws or regulations which becomes effective on or after
the Fourth Issuer Closing Date, the Fourth Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Fourth Issuer Notes which would not be required were the
relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of £1,000 or £10,000 each, or any integral multiple thereof, or
in such other denominations as the Note Trustee shall determine and notify to
the relevant Noteholders, in exchange for the whole of this Global Fourth
Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified
office of the Registrar is located and in the city in which the relevant
clearing system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the
portion of the principal amount hereof so exchanged or so purchased and
cancelled shall be endorsed by or on behalf of the Registrar on behalf of the
Fourth Issuer on Part Ii of the Schedule hereto, whereupon the principal amount
hereof shall be increased or, as the case may be, reduced for all purposes by
the amount so exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this
Global Fourth Issuer Note for Definitive Fourth Issuer Notes this Global Fourth
Issuer Note, shall be surrendered to or to 

 

219

 

the order of the Registrar and cancelled and, if
the holder of this Global Fourth Issuer Note requests, returned to it together
with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      Euroclear and
Clearstream, Luxembourg

 

References herein to Euroclear and/or Clearstream,
Luxembourg shall be deemed to include references to any other clearing system
approved by the Note Trustee.

 

5.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

6.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

7.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

220

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global Fourth Issuer Note to be
signed manually or in facsimile by a person duly authorised on its behalf.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  	
   

  
	
   

  
	
  Issued in London, England on 12th March, 2004.

  

 

221

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated
without recourse,
warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  	
   

  
	
  for and on behalf of

  	
   

  
	
  CITIBANK, N.A.

  	
   

  
	
  as Registrar

  	
   

  

 

222

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

223

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

224

 

PART P

 

SERIES 5 CLASS C GLOBAL FOURTH ISSUER NOTE

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND WILL
NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES
AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER
OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE FOURTH ISSUER
NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED
STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE SECURITIES
ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

SERIES 5 CLASS C GLOBAL FOURTH ISSUER NOTE

representing up to

 

£54,000,000 Series 5 Class C Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

 

This Series 5 Class C Global Fourth Issuer
Note is issued without principal or interest coupons in respect of a duly
authorised issue of Series 5 Class C Fourth Issuer Notes of Permanent
Financing (No. 4) PLC (the Fourth Issuer), designated as specified in
the title hereof (the Fourth Issuer Notes), limited to the
aggregate principal amount of up to fifty four million pounds sterling (£54,000,000) and constituted by a Fourth Issuer Trust
Deed dated 12th March, 2004 (the Fourth Issuer Trust Deed) between the Fourth
Issuer and The Bank of New York, as trustee (the trustee for the time
being thereof being herein called the Note Trustee).  References herein to the Conditions (or to any particular
numbered Condition) shall be to the Conditions (or that particular one of them)
set out in Schedule 3 to the
Fourth Issuer Trust Deed.  Terms used
but not defined herein have the meanings ascribed to them in the amended and
restated master definitions and construction schedule signed by the parties to
the Transaction Documents and dated 12th March, 2004 (the Master Definitions and Construction
Schedule) and the fourth issuer master definitions and construction
schedule, dated 12th March and signed for the purposes of identification by
Allen & Overy and Sidley Austin Brown & Wood (the Fourth Issuer Master Definitions and
Construction Schedule) (each as may be amended and/or restated from
time to time), and the Fourth Issuer Trust Deed and this Fourth Issuer Global
Note shall be construed in accordance with the interpretation provisions set
out in Clause 2 of the Fourth Issuer Master Definitions and Construction
Schedule.  The aggregate principal
amount from time to time of this Global Fourth Issuer Note shall be that amount
not exceeding £54,000,000 as shall
be shown by the latest entry duly made in the Schedule hereto.

 

This is to certify that:

 

Citivic Nominees Limited as nominee on behalf of the Common Depositary

 

is/are the duly registered holder(s) of
one of the Series 5 Class C Global Fourth Issuer Notes.  This Global Fourth Issuer Note is evidence
of entitlement only.  Title to the
Global Fourth Issuer Notes passes only on due registration in the Register and
only the registered holder is entitled to payment in respect of this Global Fourth
Issuer Note.

 

225

 

1.                                      Promise to pay

 

Subject as provided in this Global Fourth Issuer
Note the Fourth Issuer promises to pay to the registered holder hereof the
principal amount of this Global Fourth Issuer Note (being at the date hereof
fifty four million punds sterling (£54,000,000) on the Interest Payment Date
falling in June 2042 (or on such earlier date as the said principal amount may
become repayable in accordance with the Conditions or the Fourth Issuer Trust
Deed) and to pay interest quarterly in arrear on each Interest Payment Date on
the principal amount from time to time of this Global Fourth Issuer Note at the
rates determined in accordance with Conditions together with such other amounts
(if any) as may be payable, all subject to and in accordance with the
Conditions and the provisions of the Fourth Issuer Trust Deed.

 

2.                                      Exchange for
Definitive Fourth Issuer Notes and purchases

 

This Global Fourth Issuer Note will be exchangeable
(free of charge to the holder) for Definitive Fourth Issuer Notes only if (i)
both Euroclear Bank S.A./N.V., as operator of the Euroclear System (Euroclear)
and Clearstream Banking, société anonyme (Clearstream, Luxembourg) are closed for
business for a continuous period of 14 days (other than by reason of holiday,
statutory or otherwise) or announce an intention permanently to cease business
or do so and no alternative clearing system satisfactory to the Note Trustee is
then available, or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision thereof),
or of any authority therein or thereof having power to tax, or in the
interpretation or administration by a revenue authority or a court or
administration of such laws or regulations which becomes effective on or after
the Fourth Issuer Closing Date, the Fourth Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Fourth Issuer Notes which would not be required were the
relevant Fourth Issuer Notes in definitive registered form.  Thereupon the holder of this Global Fourth
Issuer Note (acting on the instructions of (a) holder(s) of (a) Book-Entry
Interest(s) (as defined in Section 3 hereof)) may give notice to the Fourth
Issuer, and the Fourth Issuer may give notice to the Note Trustee and the
Noteholders, of its intention to exchange this Global Fourth Issuer Note for
Definitive Fourth Issuer Notes on or after the Exchange Date (as defined
below).

 

On or after the Exchange Date, the holder of this
Global Fourth Issuer Note shall surrender this Global Fourth Issuer Note to or
to the order of the Registrar.  In
exchange for this Global Fourth Issuer Note the Fourth Issuer will deliver, or
procure the delivery of, Definitive Fourth Issuer Notes in registered form in
denominations of £1,000 or £10,000 each, or any integral multiple thereof, or
in such other denominations as the Note Trustee shall determine and notify to
the relevant Noteholders, in exchange for the whole of this Global Fourth
Issuer Note.

 

Exchange
Date means a day specified in the notice requiring
exchange falling not more than 60 days after that on which such notice is given
and on which banks are open for business in the city in which the specified office
of the Registrar is located and in the city in which the relevant clearing
system is located.

 

Upon the cancellation of a part of this Global
Fourth Issuer Note in accordance with the Fourth Issuer Trust Deed, the
Conditions and the Fourth Issuer Paying Agent and Agent Bank Agreement, the
portion of the principal amount hereof so exchanged or so purchased and
cancelled shall be endorsed by or on behalf of the Registrar on behalf of the
Fourth Issuer on Part Ii of the Schedule hereto, whereupon the principal amount
hereof shall be increased or, as the case may be, reduced for all purposes by
the amount so exchanged or so purchased and cancelled and endorsed.  Upon the exchange of the whole of this
Global Fourth Issuer Note for Definitive Fourth Issuer Notes this Global Fourth
Issuer Note, shall be surrendered to or to

 

226

 

the order of the Registrar and cancelled and, if
the holder of this Global Fourth Issuer Note requests, returned to it together
with any relevant Definitive Fourth Issuer Notes.

 

3.                                      Payments

 

Until the entire principal amount of this Global
Fourth Issuer Note has been extinguished, this Global Fourth Issuer Note shall
be entitled to the benefit of and be bound by the Conditions, the Fourth Issuer
Trust Deed and the Fourth Issuer Deed of Charge.  Payments of principal and interest in respect of Fourth Issuer
Notes represented by this Global Fourth Issuer Note will be made in accordance
with the Conditions.  Upon any payment
of principal or interest on this Global Fourth Issuer Note the amount so paid
shall be endorsed by or on behalf of the Registrar on behalf of the Fourth
Issuer on Part Ii of the Schedule hereto.

 

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

 

All payments of any amounts payable and paid to the
registered holder of this Global Fourth Issuer Note shall be valid and, to the
extent of the sums so paid, effectual to satisfy and discharge the liability
for the monies payable hereon.

 

4.                                      Euroclear and
Clearstream, Luxembourg

 

References herein to Euroclear and/or Clearstream,
Luxembourg shall be deemed to include references to any other clearing system
approved by the Note Trustee.

 

5.                                      Authentication

 

This Global Fourth Issuer Note shall not be or
become valid or obligatory for any purpose unless and until authenticated by or
on behalf of the Registrar.

 

6.                                      Governing law

 

This Global Fourth Issuer Note is governed by, and
shall be construed in accordance with, the laws of England and the Fourth
Issuer has in the Fourth Issuer Trust Deed submitted to the non exclusive
jurisdiction of the courts of England for all purposes in connection with the
Fourth Issuer Global Note.

 

7.                                      Contracts
(Rights of Third Parties) Act 1999

 

No rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
temporary Global Note, but this does not affect any right or remedy of any
person which exists or is available apart from that Act.

 

227

 

IN WITNESS WHEREOF the Fourth Issuer has caused this Global
Fourth Issuer Note to be signed manually or in facsimile by a person duly
authorised on its behalf.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  (Duly authorised)

  

 

Issued in London, England on 12th March, 2004.

 

228

 

Certificate of authentication

 

This Global Fourth Issuer Note is duly
authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

229

 

THE SCHEDULE

 

PART I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

The following payments on this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Interest Paid

  	
   

  	
  Principal Paid

  	
   

  	
  Remaining

  principal amount

  of this Global

  Fourth Issuer

  Note following

  such payment

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

230

 

PART II

 

EXCHANGES,

PURCHASES AND CANCELLATIONS

 

The following exchanges for Definitive
Fourth Issuer Notes and purchases and cancellations of a part of this Global
Fourth Issuer Note have been made:

 

	
  Date Made

  	
   

  	
  Part of principal

  amount

  exchanged for

  Definitive Fourth

  Issuer Notes

  	
   

  	
  Part of principal

  amount

  purchased and

  cancelled

  	
   

  	
  Aggregate

  principal amount

  following such

  exchange or

  purchase and

  cancellation

  	
   

  	
  Notation made

  on behalf of the

  Fourth Issuer

  	
   

  
	
   

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
  £

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

231

 

SCHEDULE 2

 

FORMS OF DEFINITIVE
FOURTH ISSUER NOTES

 

PART 1

 

SERIES 1 CLASS A DEFINITIVE FOURTH ISSUER NOTE

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  [SERIAL NO.]

  	
   

  	
  [SERIES]

  

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

U.S.$1,500,000,000 Series 1 Class A Asset Backed Floating Rate Fourth
Issuer Notes due December 2004

(the Series 1
Class A Fourth Issuer Notes)

 

This Series 1 Class A Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 1 Class A Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 1 Class A Fourth Issuer Notes in denominations
of U.S.$1,000 or U.S.$10,000 each, or integral multiples thereof, or in such
other denominations as the Note Trustee shall determine and notify to the
holders of the relevant Series 1 Class A Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 1 Class A Fourth Issuer Notes, such
Series 1 Class A Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in March 2005
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 1 Class A
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 1 Class A Fourth Issuer Note at rates determined in accordance with the
Conditions payable monthly or quarterly, as the case may be, in arrear on each
Interest Payment Date and together with such other amounts (if any) as may be
payable, all subject to and in accordance with the Conditions and the provisions
of the Fourth Issuer Trust Deed.

 

232

 

IN WITNESS WHEREOF this registered Series 1 Class A Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 1 Class A Fourth Issuer Note
is duly authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

233

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

234

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$
                                           
principal amount of this Series 1 Class A Fourth Issuer Note and all rights
hereunder, hereby irrevocably constituting and appointing
                        
as attorney to transfer such principal amount of this Series 1 Class A Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT  FINANCING
(NO. 4) PLC with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 1 Class A Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

235

 

PART 2

 

SERIES 1 CLASS B DEFINITIVE FOURTH ISSUER NOTE

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  [SERIAL NO.]

  	
   

  	
  [SERIES]

  

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

U.S.$78,100,000 Series 1 Class B Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 1 Class B Fourth Issuer Notes)

 

This Series 1 Class B Fourth Issuer Note forms
one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of
New York, as trustee for the holders of the Series 1 Class B Fourth Issuer
Notes (the Note Trustee) and issued as registered Series 1 Class B Fourth
Issuer Notes in denominations of U.S.$1,000 or U.S.$10,000 each, or integral
multiples thereof, or in such other denominations as the Note Trustee shall determine
and notify to the holders of the relevant Series 1 Class B Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 1 Class B Fourth Issuer Notes, such
Series 1 Class B Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 1 Class B
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 1 Class B Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

IN WITNESS WHEREOF this registered Series 1 Class B Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  
	
   

  
	
  By 

  	
   

  	
   

  
	
   

  	
  Director

  
	
   

  	
   

  
	
  Dated

  	
   

  
						

 

236

 

Certificate of authentication

 

This Series 1 Class B Fourth Issuer Note
is duly authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

237

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

238

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$
                                              
principal amount of this Series 1 Class B Fourth Issuer Note and all rights
hereunder, hereby irrevocably constituting and appointing
                               
as attorney to transfer such principal amount of this Series 1 Class B Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
					

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 1 Class B Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

239

 

PART 3

 

SERIES 1 CLASS M DEFINITIVE FOURTH ISSUER NOTE

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  [SERIAL NO.]

  	
   

  	
  [SERIES]

  

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

U.S.$56,500,000 Series 1 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 1 Class C Fourth Issuer Notes)

 

This Series 1 Class M Fourth Issuer Note
forms one of a series of notes constituted by a fourht issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of
New York, as trustee for the holders of the Series 1 Class C Fourth Issuer
Notes (the Note Trustee) and issued as registered Series 1 Class M Fourth
Issuer Notes in denominations of U.S.$1,000 or U.S.$10,000 each, or integral
multiples thereof, or in such other denominations as the Note Trustee shall
determine and notify to the holders of the relevant Series 1 Class M Fourth
Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 1 Class C Fourth Issuer Notes, such
Series 1 Class M Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions (the Series 1 Class M
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 1 Class M Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

IN WITNESS WHEREOF this registered Series 1 Class M Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  Dated

  
					

 

240

 

Certificate of authentication

 

This Series 1 Class M Fourth Issuer Note
is duly authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

241

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

242

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$                                       principal
amount of this Series 1 Class M Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                       as
attorney to transfer such principal amount of this Fourth Issuer Note in the
register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC with full
power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
					

 

NOTES:

 

1.                                       This
form of transfer must be accompanied by such documents, evidence and
information as may be required pursuant to the Series 1 Class M Fourth Issuer
Trust Deed and the Fourth Issuer Paying Agent and Agent Bank Agreement (as
defined in the Conditions) and must be executed under the hand of the
transferor or, if the transferor is a corporation, either under its common seal
or under the hand of two of its officers duly authorised in writing and, in
such latter case, the document so authorising such officers must be delivered
with this form of transfer.

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 1 Class M Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

243

 

PART 4

 

SERIES 2 CLASS A DEFINITIVE
FOURTH ISSUER NOTE

 

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  [SERIAL NO.]

  	
   

  	
  [SERIES]

  

 

PERMANENT FINANCING
(NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

U.S.$2,400,000,000 Series 2 Class A Asset Backed Floating Rate Fourth
Issuer Notes due March 2009

(the Series 2 Class A Fourth Issuer Notes)

 

This Series 2 Class A Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 2 Class A Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 2 Class A Fourth Issuer Notes in denominations
of U.S.$1,000 or U.S.$10,000 each, or integral multiples thereof, or in such
other denominations as the Note Trustee shall determine and notify to the
holders of the relevant Series 2 Class A Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 2 Class A Fourth Issuer Notes, such
Series 2 Class A Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in March 2009
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 2 Class A
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 2 Class A Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

IN WITNESS WHEREOF this registered Series 2 Class A Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

244

 

Certificate of authentication

 

This Series 2 Class A Fourth Issuer Note
is duly authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

245

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

246

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$
                                                   
principal amount of this Series 2 Class A Fourth Issuer Note and all rights
hereunder, hereby irrevocably constituting and appointing
                          
as attorney to transfer such principal amount of this Series 2 Class A Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
					

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 2 Class A Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

247

 

PART 5

 

SERIES 2 CLASS B DEFINITIVE FOURTH ISSUER NOTE

 

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  [SERIAL NO.]

  	
   

  	
  [SERIES]

  

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

U.S.$100,700,000 Series 2 Class B Asset Backed Floating Rate Fourth
Issuer Notes due June 2042

(the Series 2 Class B Fourth Issuer Notes)

 

This Series 2 Class B Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 2 Class B Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 2 Class B Fourth Issuer Notes in denominations
of U.S.$1,000 or U.S.$10,000 each, or integral multiples thereof, or in such
other denominations as the Note Trustee shall determine and notify to the
holders of the relevant Series 2 Class B Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 2 Class B Fourth Issuer Notes, such
Series 2 Class B Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 2 Class B
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 2 Class B Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

IN WITNESS WHEREOF this registered Series 2 Class B Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

248

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 2 Class B Fourth Issuer Note
is duly authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

249

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

250

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$                                            principal
amount of this Series 2 Class B Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                               as
attorney to transfer such principal amount of this Series 2 Class B Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC with
full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
					

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 2 Class B Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

251

 

PART 6

 

SERIES 2 CLASS M DEFINITIVE FOURTH ISSUER NOTE

 

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  [SERIAL NO.]

  	
   

  	
  [SERIES]

  

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

U.S.$59,900,000 Series 2 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 2 Class M Fourth Issuer Notes)

 

This Series 2 Class M Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 2 Class M Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 2 Class M Fourth Issuer Notes in denominations
of U.S.$1,000 or U.S.$10,000 each, or integral multiples thereof, or in such
other denominations as the Note Trustee shall determine and notify to the
holders of the relevant Series 2 Class M Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 2 Class M Fourth Issuer Notes, such
Series 2 Class M Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 2 Class M
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 2 Class M Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

252

 

IN WITNESS WHEREOF this registered Series 2 Class M Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 2 Class M Fourth Issuer Note
is duly authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

253

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

254

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$                                      principal
amount of this Series 2 Class M Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                      as
attorney to transfer such principal amount of this Series 2 Class M Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
					

 

NOTES:

 

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

 

THE SIGNATURE(S) ON THIS FORM OF TRANSFER MUST CORRESPOND WITH THE

NAME(S) AS IT/THEY APPEAR(S) ON THE FACE OF THIS SERIES 2 CLASS M FOURTH

ISSUER NOTE IN EVERY PARTICULAR, WITHOUT ALTERATION OR

ENLARGEMENT OR ANY CHANGE WHATEVER.

 

255

 

PART 7

 

SERIES 2 CLASS C DEFINITIVE FOURTH ISSUER NOTE

 

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  [SERIAL NO.]

  	
   

  	
  [SERIES]

  

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

U.S.$82,200,000 Series 2 Class C Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 2 Class C Fourth Issuer Notes)

 

This Series 2 Class C Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 2 Class C Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 2 Class C Fourth Issuer Notes in denominations
of U.S.$1,000 or U.S.$10,000 each, or integral multiples thereof, or in such other
denominations as the Note Trustee shall determine and notify to the holders of
the relevant Series 2 Class C Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 2 Class C Fourth Issuer Notes, such
Series 2 Class C Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 2 Class C
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal Amount
Outstanding (as defined in Condition 5(C)) endorsed hereon of this Series 2
Class C Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

IN WITNESS WHEREOF this registered Series 2 Class C Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

256

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 2 Class C Fourth Issuer Note
is duly authenticated

without recourse, warranty
or liability.

 

	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

257

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

258

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$                                     principal
amount of this Series 2 Class C Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                     as
attorney to transfer such principal amount of this Series 2 Class C Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
					

 

NOTES:

 

2.                                       This
form of transfer must be accompanied by such documents, evidence and
information as may be required pursuant to the Fourth Issuer Trust Deed and the
Fourth Issuer Paying Agent and Agent Bank Agreement (as defined in the
Conditions) and must be executed under the hand of the transferor or, if the
transferor is a corporation, either under its common seal or under the hand of
two of its officers duly authorised in writing and, in such latter case, the
document so authorising such officers must be delivered with this form of
transfer.

 

3.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 2 Class C Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

259

 

PART 8

 

SERIES 3 CLASS A
DEFINITIVE FOURTH ISSUER NOTE

 

	
   

  	
  [1,000/10,000]

  	
  [ISIN:]

  [SERIAL NO.]

  	
  [SERIES]

  

 

PERMANENT FINANCING
(NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

U.S.$1,700,000,000 Series 3 Class A Asset Backed Floating Rate Fourth
Issuer Notes due March 2024

(the Series 3 Class A Fourth Issuer Notes)

 

This Series 3 Class A Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 3 Class A Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 3 Class A Fourth Issuer Notes in
denominations of US$1,000 or US$10,000 each, or integral multiples thereof, or
in such other denominations as the Note Trustee shall determine and notify to
the holders of the relevant Series 3 Class A Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 3 Class A Fourth Issuer Notes, such
Series 3 Class A Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in March 2024
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 3 Class A
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 3 Class A Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

260

 

IN WITNESS WHEREOF this registered Series 3 Class A Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 3 Class A Fourth Issuer Note is duly authenticated

without
recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

261

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

262

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$
                                             
principal amount of this Series 3 Class A Fourth Issuer Note and all rights
hereunder, hereby irrevocably constituting and appointing
                           
as attorney to transfer such principal amount of this Series 3 Class A
Fourth Issuer Note in the register maintained by or on behalf of PERMANENT
FINANCING (NO. 4) PLC with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 3 Class A Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

263

 

PART 9

 

SERIES 3 CLASS B DEFINITIVE FOURTH ISSUER NOTE

 

	
   

  	
  [1,000/10,000]

  	
  [ISIN:]

  [SERIAL NO.]

  	
  [SERIES]

  

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

US$75,800,000 Series 3 Class B Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 3 Class B Fourth Issuer Notes)

This Series 3 Class B Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 3 Class B Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 3 Class B Fourth Issuer Notes in
denominations of US$1,000 or US$10,000 each, or integral multiples thereof, or
in such other denominations as the Note Trustee shall determine and notify to
the holders of the relevant Series 3 Class B Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 3 Class B Fourth Issuer Notes, such
Series 3 Class B Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 3 Class B
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 3 Class B Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

IN WITNESS WHEREOF this registered Series 3 Class B Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

264

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 3 Class B Fourth Issuer Note is duly authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

265

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

266

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$                                                 principal
amount of this Series 3 Class B Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                                 as
attorney to transfer such principal amount of this Series 3 Class B Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC with
full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 3 Class B Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

267

 

PART 10

 

SERIES 3 CLASS M DEFINITIVE FOURTH ISSUER NOTE

 

	
   

  	
  [1,000/10,000]

  	
  [ISIN:]

  [SERIAL NO.]

  	
  [SERIES]

  

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

US$40,400,000 Series 3 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 3 Class M Fourth Issuer Notes)

 

This Series 3 Class M Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 3 Class M Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 3 Class M Fourth Issuer Notes in
denominations of US$1,000 or US$10,000 each, or integral multiples thereof, or
in such other denominations as the Note Trustee shall determine and notify to
the holders of the relevant Series 3 Class M Fourth Issuer Notes.

 

THIS IS TO CERTIFY  that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 3 Class M Fourth Issuer Notes, such
Series 3 Class M Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 3 Class M
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 3 Class M Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

IN WITNESS WHEREOF this registered Series 3 Class M Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

268

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 3 Class M Fourth Issuer Note is duly authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

269

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

270

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$                                              principal
amount of this Series 3 Class M Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                              as
attorney to transfer such principal amount of this Series 3 Class M Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

3.                                       This
form of transfer must be accompanied by such documents, evidence and
information as may be required pursuant to the Fourth Issuer Trust Deed and the
Fourth Issuer Paying Agent and Agent Bank Agreement (as defined in the
Conditions) and must be executed under the hand of the transferor or, if the
transferor is a corporation, either under its common seal or under the hand of
two of its officers duly authorised in writing and, in such latter case, the
document so authorising such officers must be delivered with this form of
transfer.

 

4.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 3 Class M Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

271

 

PART 11

 

SERIES
3 CLASS C DEFINITIVE FOURTH ISSUER NOTE

 

	
   

  	
  [1,000/10,000]

  	
  [ISIN:]

  [SERIAL NO.]

  	
  [SERIES]

  

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

US$55,400,000 Series 3 Class C Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 3 Class C Fourth Issuer Notes)

 

This Series 3 Class C Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 3 Class C Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 3 Class C Fourth Issuer Notes in
denominations of US$1,000 or US$10,000 each, or integral multiples thereof, or
in such other denominations as the Note Trustee shall determine and notify to
the holders of the relevant Series 3 Class C Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 3 Class C Fourth Issuer Notes, such
Series 3 Class C Fourth Issuer Notes being in the denomination of
U.S.$             (                                       U.S.
dollars) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 3 Class C
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

U.S.$             (                                       U.S.
dollars)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 3 Class C Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other amounts (if any) as may be payable, all subject to and
in accordance with the Conditions and the provisions of the Fourth Issuer Trust
Deed.

 

IN WITNESS WHEREOF this registered Series 3 Class C Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

272

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 3 Class C Fourth Issuer Note is duly authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

273

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

274

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

U.S.$                                        principal
amount of this Series 3 Class C Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                        as
attorney to transfer such principal amount of this Series 3 Class C Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 3 Class C Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

275

 

PART 12

 

SERIES 4 CLASS A DEFINITIVE FOURTH ISSUER NOTE

 

	
   

  	
  [500,000]

  	
  [ISIN: ]

  	
   

  	
  [SERIES]

  	
  [SERIAL NO.]

  

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

€1,500,000,000 Series 4 Class A Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 4 Class A1 Fourth Issuer Notes)

 

This Series 4 Class A1 Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 4 Class A1 Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 4 Class A1 Fourth Issuer Notes in denominations
of €500,000 each, or integral multiples thereof, or in such other denominations
(which must be higher than €500,000) as the Note Trustee shall determine and
notify to the holders of the relevant Series 4 Class A1 Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 4 Class A Fourth Issuer Notes, such
Series 4 Class A Fourth Issuer Notes being in the denomination of
€        (              euro)
and is/are entitled on the Interest Payment Date falling in June 2042 (or on
such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 4 Class A
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

 

€                      (                          euro)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 4 Class A Fourth Issuer Note at rates determined in accordance with the
said Conditions payable quarterly, as the case may be, in arrear on each
Interest Payment Date and 

 

276

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

IN WITNESS WHEREOF this registered Series 4 Class A Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 4 Class A1 Fourth Issuer Note is duly authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

277

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

278

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

€                                                      principal
amount of this Series 4 Class A Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                                      as
attorney to transfer such principal amount of this Series 4 Class A Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 4 Class A Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

279

 

3.

 

PART 13

 

SERIES 4 CLASS B DEFINITIVE FOURTH ISSUER NOTE

 

	
   

  	
  [500,000]

  	
  [ISIN:]

  	
   

  	
  [SERIES]

  	
  [SERIAL NO.]

  

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

€85,000,000 Series 4 Class B Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 4 Class B Fourth Issuer Notes)

 

This Series 4 Class B Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 4 Class B Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 4 Class B Fourth Issuer Notes in
denominations of €500,000 each, or integral multiples thereof, or in such other
denominations (which must be higher than €500,000) as the Note Trustee shall
determine and notify to the holders of the relevant Series 4 Class B Fourth
Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 4 Class B Fourth Issuer Notes, such
Series 4 Class B Fourth Issuer Notes being in the denomination of
€                      (                          euro)
and is/are entitled on the Interest Payment Date falling in June 2042 (or on
such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 4 Class B
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

€                      (                          euro)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 4 Class B Fourth Issuer Note at rates determined in accordance with the 

 

280

 

Conditions payable quarterly in arrear on
each Interest Payment Date and together with such other amounts (if any) as may
be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

IN WITNESS WHEREOF this registered Series 4 Class B Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 4 Class B Fourth Issuer Note is duly authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

281

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

282

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

€                                                  principal
amount of this Series 4 Class B Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                                  as
attorney to transfer such principal amount of this Series 4 Class B Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 4 Class B Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

283

 

PART 14

 

SERIES 4 CLASS M DEFINITIVE FOURTH ISSUER NOTE

 

	
   

  	
  [500,000]

  	
  [ISIN: ]

  	
   

  	
  [SERIES]

  	
  [SERIAL NO.]

  

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

€62,500,000 Series 4 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 4 Class M Fourth Issuer Notes)

 

This Series 4 Class M Fourth Issuer Note
forms one of a series of notes constituted by a fourht issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 4 Class M Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 4 Class M Fourth Issuer Notes in
denominations of €500,000 each, or integral multiples thereof, or in such other
denominations (which must be higher than €500,00) as the Note Trustee shall
determine and notify to the holders of the relevant Series 4 Class m Fourth
Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 4 Class M Fourth Issuer Notes, such
Series 4 Class M Fourth Issuer Notes being in the denomination of
€                      (                          euro)
and is/are entitled on the Interest Payment Date falling in June 2042 (or on
such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 4 Class M
Fourth Issuer Notes (the Conditions) endorsed hereon) to the repayment of such
principal sum of:

 

€                      (                          euro)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 4 Class M Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other 

 

284

 

amounts (if any) as may be payable, all
subject to and in accordance with the Conditions and the provisions of the
Fourth Issuer Trust Deed.

 

IN WITNESS WHEREOF this registered Series 4 Class M Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 4 Class M Fourth Issuer Note is duly authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

285

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

286

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

€                                           principal
amount of this Series 4 Class M Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                           as
attorney to transfer such principal amount of this Series 4 Class M Fourth Issuer
Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 4 Class M Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

287

 

PART 15

 

SERIES 5 CLASS A1 DEFINITIVE FOURTH ISSUER
NOTE

 

	
   

  	
  [1,000/10,000]

  	
  [ISIN:]

  	
   

  	
  [SERIES]

  	
  [SERIAL NO.]

  

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

€750,000,000 Series 5 Class A1 Asset Backed Fixed-Floating Rate Fourth
Issuer Notes due June 2042

(the Series 5 Class A1 Fourth Issuer Notes)

 

This Series 5 Class A1 Fourth Issuer Note
forms one of a series of notes constituted by a fourht issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 5 Class A1 Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 5 Class A1 Fourth Issuer Notes in
denominations of €500,000, or integral multiples thereof, or in such other
denominations as the Note Trustee shall determine (which must be higher than
€500,000) and notify to the holders of the relevant Series 5 Class A1 Fourth
Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 5 Class A1 Fourth Issuer Notes, such
Series 5 Class A1 Fourth Issuer Notes being in the denomination of
€                          (                          euro)
and is/are entitled on the Interest Payment Date falling in June 2042 (or on
such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 5 Class A1
Fourth Issuer Notes (the Conditions endorsed hereon) to the
repayment of such principal sum of:

 

€                          (                          euro)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 5 Class A1 Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in annually or arrear, as the case may be, on each
Interest Payment Date 

 

288

 

and together with such other amounts (if
any) as may be payable, all subject to and in accordance with the Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

IN WITNESS WHEREOF this registered Series 5 Class A1 Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 5 Class A Fourth Issuer Note is duly authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

289

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

290

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

€                                              principal
amount of this Series 5 Class A1 Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                              as
attorney to transfer such principal amount of this Series 5 Class A1 Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 5 Class A Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

291

 

PART 16

 

SERIES 5 CLASS A2 DEFINITIVE FOURTH ISSUER
NOTE

 

	
   

  	
  [1,000/10,000]

  	
  [ISIN:]

  	
   

  	
  [SERIES]

  	
  [SERIAL NO.]

  

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

£1,100,000,000 Series 5 Class A2 Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 5 Class A2 Fourth Issuer Notes)

 

This Series 4 Class A2 Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 5 Class A2 Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 5 Class A2 Fourth Issuer Notes in
denominations of £1,000 or £10,000 each, or integral multiples thereof, or in
such other denominations as the Note Trustee shall determine and notify to the
holders of the relevant Series 5 Class A2 Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 5 Class A2 Fourth Issuer Notes, such
Series 5 Class A2 Fourth Issuer Notes being in the denomination of
£       (              pounds
sterling) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 5 Class A2
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

£                      (                          pounds sterling)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal Amount
Outstanding (as defined in Condition 5(C)) endorsed hereon of this Series 5
Class A2 Fourth Issuer Note at rates determined in accordance with the said
Conditions payable quarterly, as the case may be, in arrear on each Interest
Payment Date and 

 

292

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the said Conditions
and the provisions of the Fourth Issuer Trust Deed.

 

IN WITNESS WHEREOF this registered Series 5 Class A2 Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

PERMANENT FINANCING (NO. 4) PLC

 

	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Director

  
	
   

  
	
  Dated

  

 

Certificate of authentication

 

This Series 5 Class A2 Fourth Issuer Note is duly authenticated

without recourse, warranty or liability.

 

	
   

  	
   

  
	
  Duly authorised

  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

293

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

294

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

£                                      principal
amount of this Series 5 Class A2 Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                                      as
attorney to transfer such principal amount of this Series 5 Class A2 Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 5 Class A2 Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

295

 

PART 17

 

SERIES 5 CLASS B DEFINITIVE FOURTH ISSUER NOTE

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  	
   

  	
  [SERIES]

  	
   

  	
  [SERIAL NO.]

  

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

£43,000,000 Series 5 Class B Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 5 Class B Fourth Issuer Notes)

 

This Series 5 Class B Fourth Issuer Note
forms one of a series of notes constituted by a fourth issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 5 Class B Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 5 Class B Fourth Issuer Notes in
denominations of £1,000 or £10,000 each, or integral multiples thereof, or in
such other denominations as the Note Trustee shall determine and notify to the
holders of the relevant Series 5 Class B Fourth Issuer Notes.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 5 Class B Fourth Issuer Notes, such
Series 5 Class B Fourth Issuer Notes being in the denomination of
£                      (                          pounds
sterling) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 5 Class B
Fourth Issuer Notes (the Conditions) endorsed hereon) to the
repayment of such principal sum of:

 

£                      (                          pounds
sterling)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal Amount
Outstanding (as defined in Condition 5(C)) endorsed hereon of this Series 5
Class B Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other

 

296

 

amounts (if any) as may be payable, all
subject to and in accordance with the Conditions and the provisions of the
Fourth Issuer Trust Deed.

 

IN WITNESS WHEREOF this registered Series 5 Class B Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  
	
   

  
	
  Dated

  
	
   

  
	
  Certificate of authentication

  
	
   

  
	
  This Series 5 Class B Fourth Issuer Note
  is duly authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

297

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

298

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

£                                     principal
amount of this Series 5 Class B Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                             as
attorney to transfer such principal amount of this Series 5 Class B Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 5 Class B Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

299

 

PART 18

 

SERIES 5 CLASS M DEFINITIVE FOURTH ISSUER NOTE

 

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  	
   

  	
  [SERIES]

  	
   

  	
  [SERIAL NO.]

  

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

€32,000,000 Series 5 Class M Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 5 Class M Fourth Issuer Notes)

 

This Series 5 Class M Fourth Issuer Note
forms one of a series of notes constituted by a second issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 5 Class M Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 5 Class M Fourth Issuer Notes in
denominations of £1,000/10,000each, or integral multiples thereof, or in such
other denominations (which must be higher than €500,000) as the Note Trustee
shall determine and notify to the holders of the relevant Series 5 Class M.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 5 Class M Fourth Issuer Notes, such
Series 5 Class M Fourth Issuer Notes being in the denomination of
£                      (                          pounds
sterling) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 5 Class M
Fourth Issuer Notes (the Conditions) endorsed hereon) to the repayment of such
principal sum of:

 

£                      (                          pounds
sterling)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 5 Class M Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other

 

300

 

amounts (if any) as may be payable, all
subject to and in accordance with the Conditions and the provisions of the
Fourth Issuer Trust Deed.

 

IN WITNESS WHEREOF this registered Series 5 Class C Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  Dated

  
	
   

  
	
  Certificate of authentication

  
	
   

  
	
  This Series 5 Class M Fourth Issuer Note
  is duly authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

301

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

302

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

 

 

 

 

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

 

£                             principal
amount of this Series 5 Class M Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and
appointing                         as
attorney to transfer such principal amount of this Series 5 Class M Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

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

 

2.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 5 Class M Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

303

 

PART 19

 

SERIES 5 CLASS C DEFINITIVE FOURTH ISSUER NOTE

 

	
  [1,000/10,000]

  	
   

  	
  [ISIN:]

  	
   

  	
  [SERIES]

  	
   

  	
  [SERIAL NO.]

  

 

THIS FOURTH ISSUER NOTE HAS NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE SECURITIES ACT) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER
THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE
FOURTH ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

 

PERMANENT FINANCING (NO. 4) PLC

 

(Incorporated with limited liability in
England with registered number 4988201)

 

£54,000,000 Series 5 Class C Asset Backed Floating Rate Fourth Issuer
Notes due June 2042

(the Series 5 Class C Fourth Issuer Notes)

 

This Series 5 Class C Fourth Issuer Note
forms one of a series of notes constituted by a second issuer trust deed (the Fourth
Issuer Trust Deed) dated 12th March, 2004 made between Permanent
Financing (No. 4) PLC (the Fourth Issuer) and The Bank of New York, as
trustee for the holders of the Series 5 Class C Fourth Issuer Notes (the Note Trustee)
and issued as registered Series 5 Class C Fourth Issuer Notes in
denominations of £1,000/10,000 each, or integral multiples thereof, or in such
other denominations as the Note Trustee shall determine and notify to the
holders of the relevant Series 5 Class C.

 

THIS IS TO CERTIFY that

 

is/are the registered holder(s) of one of
the above-mentioned registered Series 5 Class C Fourth Issuer Notes, such
Series 5 Class C Fourth Issuer Notes being in the denomination of
£                      (                          pounds
sterling) and is/are entitled on the Interest Payment Date falling in June 2042
(or on such earlier date as the principal sum hereinafter mentioned may become
repayable in accordance with the terms and conditions of the Series 5 Class C
Fourth Issuer Notes (the Conditions) endorsed hereon) to the repayment of such
principal sum of:

 

£                      (                          pounds
sterling)

 

together with such other amounts (if any)
as may be payable, all subject to and in accordance with the Conditions and the
provisions of the Fourth Issuer Trust Deed.

 

Interest is payable on the Principal
Amount Outstanding (as defined in Condition 5(C)) endorsed hereon of this
Series 5 Class C Fourth Issuer Note at rates determined in accordance with the
Conditions payable quarterly in arrear on each Interest Payment Date and
together with such other

 

304

 

amounts (if any) as may be payable, all
subject to and in accordance with the Conditions and the provisions of the
Fourth Issuer Trust Deed.

 

IN WITNESS WHEREOF this registered Series 5 Class C Fourth Issuer Note has been executed
on behalf of the Fourth Issuer.

 

	
  PERMANENT FINANCING (NO. 4) PLC

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  
	
   

  
	
  Dated

  
	
   

  
	
  Certificate of authentication

  
	
   

  
	
  This Series 5 Class C Fourth Issuer Note
  is duly authenticated

  without recourse, warranty or liability.

  
	
   

  
	
   

  	
   

  
	
  Duly authorised

  
	
  for and on behalf of

  
	
  CITIBANK, N.A.

  
	
  as Registrar

  

 

305

 

(REVERSE OF NOTE)

 

THE CONDITIONS

 

[In the form set out in Schedule
3]

 

306

 

FORM OF TRANSFER OF DEFINITIVE FOURTH ISSUER
NOTE

 

FOR VALUE RECEIVED the undersigned hereby transfer(s) to

	
   

  
	
   

  
	
   

  

 

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

 

£                               principal
amount of this Series 5 Class C Fourth Issuer Note and all rights hereunder,
hereby irrevocably constituting and appointing                               as
attorney to transfer such principal amount of this Series 5 Class C Fourth
Issuer Note in the register maintained by or on behalf of PERMANENT FINANCING (NO. 4) PLC
with full power of substitution.

 

	
  Signature(s)

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

NOTES:

 

3.                                       This
form of transfer must be accompanied by such documents, evidence and
information as may be required pursuant to the Fourth Issuer Trust Deed and the
Fourth Issuer Paying Agent and Agent Bank Agreement (as defined in the
Conditions) and must be executed under the hand of the transferor or, if the
transferor is a corporation, either under its common seal or under the hand of
two of its officers duly authorised in writing and, in such latter case, the
document so authorising such officers must be delivered with this form of
transfer.

 

4.                                       The
signature(s) on this form of transfer must correspond with the name(s) as
it/they appear(s) on the face of this Series 5 Class C Fourth Issuer Note in
every particular, without alteration or enlargement or any change whatever.

 

307

 

SCHEDULE 3

 

TERMS AND CONDITIONS OF
THE FOURTH ISSUER NOTES

 

[To be inserted from offering
circular]

 

308

 

SCHEDULE 4

 

PROVISIONS FOR MEETINGS
OF NOTEHOLDERS

 

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

 

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

 

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

 

I.                                         the
conclusion of the meeting specified in such certificate or, if applicable, of
any adjourned such meeting; and

 

II.                                     the
surrender of the certificate to the Paying Agent who issued the same; and

 

(B)                                that
the bearer thereof is entitled to attend and vote at such meeting and any
adjourned such meeting in respect of the Fourth Issuer Notes represented by
such certificate;

 

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

 

(A)                              it
is certified that Fourth Issuer Notes (represented by a Global Fourth Issuer
Note and not being Fourth Issuer Notes in respect of which a voting certificate
has been issued and is outstanding in respect of the meeting specified in such
block voting instruction and any adjourned such meeting) were (to the
satisfaction of such Paying Agent) held to its order or under its control and
that no such Fourth Issuer Notes will cease to be so held until the first to
occur of:

 

I.                                         the
conclusion of the meeting specified in such document or, if applicable, of any
adjourned such meeting; and

 

II.                                     the
surrender to that Paying Agent not less than 48 hours before the time for which
such meeting or any adjourned such meeting is convened of the receipt issued by
such Paying Agent in respect of each such Fourth Issuer Note which is to be
released or (as the case may require) the Fourth Issuer Note or Fourth Issuer
Notes ceasing with the agreement of that Paying Agent to be held to its order
or under its control and the giving of notice by that Paying Agent to the
Fourth Issuer in accordance with paragraph 17 hereof of the necessary amendment
to the block voting instruction;

 

309

 

(B)                                it
is certified that each holder of such Fourth Issuer Notes has instructed such
Paying Agent that the vote(s) attributable to the Fourth Issuer Note or Fourth
Issuer Notes so held should be cast in a particular way in relation to the
resolution or resolutions to be put to such meeting or any adjourned such meeting
and that all such instructions are during the period commencing 48 hours prior
to the time for which such meeting or any adjourned such meeting is convened
and ending at the conclusion or adjournment thereof neither revocable nor
capable of amendment;

 

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

 

(D)                               one
or more persons named in such document (each hereinafter called a proxy)
is or are authorised and instructed by such Paying Agent to cast the votes
attributable to the Fourth Issuer Notes so listed in accordance with the
instructions referred to in (C) above as set out in such document;

 

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

 

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

 

(v)                                 Fourth
Issuer Notes and Noteholders shall mean:

 

(A)                              in
connection with a single meeting of Class A Fourth Issuer Noteholders, Class A
Fourth Issuer Notes and Class A Fourth Issuer Noteholders, respectively;

 

(B)                                in
connection with a meeting of Class B Fourth Issuer Noteholders, Class B Fourth
Issuer Notes and Class B Fourth Issuer Noteholders respectively;

 

310

 

(C)                                in
connection with a meeting of Class M Fourth Issuer Noteholders, Class M Fourth
Issuer Notes and Class M Fourth Issuer Noteholders respectively; and

 

(D)                               in
connection with a meeting of Class C Fourth Issuer Noteholders, Class C Fourth
Issuer Notes and Class C Fourth Issuer Noteholders respectively.

 

(b)                                 A
holder of a Fourth Issuer Note represented by a Global Fourth Issuer Note may
obtain a voting certificate in respect of such Fourth Issuer Note from a Paying
Agent or require a Paying Agent to issue a block voting instruction in respect
of such Fourth Issuer Note or by such Fourth Issuer Note (to the satisfaction
of such Paying Agent) being held to its order or under its control, in each
case not less than 48 hours before the time fixed for the relevant meeting and
on the terms set out in subparagraph (a)(i)(A) or (a)(ii)(A) above (as the case
may be), and (in the case of a block voting instruction) instructing such
Paying Agent to the effect set out in subparagraph (a)(ii)(B) above.  The holder of any voting certificate or the
proxies named in any block voting instruction shall for all purposes in
connection with the relevant meeting or adjourned meeting of Noteholders be
deemed to be the holder of the Fourth Issuer Notes to which such voting
certificate or block voting instruction relates and the person holding the same
to the order or under the control of such Paying Agent shall be deemed for such
purposes not to be the holder of those Fourth Issuer Notes.

 

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

 

(ii)                                  Any
holder of Definitive Fourth Issuer Notes which is a corporation may by
resolution of its directors or other governing body authorise any person to act
as its representative (a representative) in connection with any
meeting of the Noteholders and any adjourned such meeting.

 

(iii)                               Any
proxy appointed pursuant to subparagraph (i) above or representative appointed
pursuant to subparagraph (ii) above shall so long as such appointment remains
in force be deemed, for all purposes in connection with the relevant meeting or
adjourned meeting of the Noteholders, to be the holder of the Definitive Fourth
Issuer Notes to which such appointment relates and the holder of the Definitive
Fourth Issuer Notes shall be deemed for such purposes not to be the holder.

 

(d)                                 [For so long as any
Fourth Issuer Notes is represented by a Fourth Issuer Global Note registered in
the name of DTC or its nominee, DTC may mail an Omnibus Proxy to the Fourth
Issuer in accordance with and in the form used by DTC as part of its usual procedures
from time to time in relation to meetings of Noteholders.  Such Omnibus Proxy shall assign the voting
rights in respect of the relevant meeting to DTC’s direct participants as of
the record date specified therein.  Any
such assignee participant may, by an instrument in writing in the English
language signed by such assignee participant, or, in the case of a corporation,
executed under its common seal or signed on its behalf by an attorney or a duly
authorised officer of the corporation and

 

311

 

delivered to the
specified office of the Paying Agent before the time fixed for the relevant
meeting, appoint any person (a sub-proxy”) to act on his or its behalf in
connection with any meeting of Noteholders and any adjourned such meeting.  All references to “proxy” or “proxies”
in this Schedule other than in this sub-paragraph (D) shall be read so as to
include references to “sub-proxy” or “sub-proxies”.]

 

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

 

3.                                       At
least 21 days’ notice (exclusive of the day on which the notice is given and
the day on which the meeting is to be held) specifying the place, day and hour
of meeting shall be given to the Noteholders prior to any meeting of the
Noteholders.  Such notice, which shall be
in the English language, shall state generally the nature of the business to be
transacted at the meeting thereby convened but (except for an Extraordinary
Resolution) it shall not be necessary to specify in such notice the terms of
any resolution to be proposed.  Such
notice shall include statements, if applicable, to the effect that (a) Fourth
Issuer Notes represented by a Global Fourth Issuer Note may, not less than 48
hours before the time fixed for the meeting, be held to the order or under the
control of any Paying Agent (to its satisfaction) for the purpose of obtaining
voting certificates or appointing proxies and (b) the holders of Definitive
Fourth Issuer Notes of the relevant class may appoint proxies by executing and
delivering a form of proxy in the English language to the specified office of
the Registrar not less than 48 hours before the time fixed for the meeting or,
in the case of corporations, may appoint representatives by resolution of their
directors or other governing body.  A
copy of the notice shall be sent by post to the Note Trustee (unless the
meeting is convened by the Note Trustee) and, to the Fourth Issuer (unless the
meeting is convened by the Fourth Issuer).

 

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

 

5.                                       Subject
to the provisions of Section 316(b) of the Trust Indenture Act, at any such
meeting one or more persons present holding Fourth Issuer Notes or voting
certificates or being proxies or representatives and holding or representing in
the aggregate not less than one-twentieth of the principal amount of the Fourth
Issuer Notes for the time being outstanding shall (except for the purpose of
passing an Extraordinary Resolution) form a quorum for the transaction of
business and no business (other than the choosing of a Chairman) shall be
transacted at any meeting unless the requisite quorum be present at the
commencement of the relevant business. 
The quorum at any such meeting for passing an Extraordinary Resolution
shall (subject as provided below) be two or more persons present holding or
representing Fourth Issuer Notes or voting certificates or being proxies or
representatives and holding or representing in the aggregate not less than 50 per
cent. in Principal Amount Outstanding of the Fourth Issuer Notes (or, at any
adjourned meeting, two or more persons being or representing Noteholders
whatever the aggregate Principal Amount Outstanding of the Fourth Issuer Notes
so held or represented) PROVIDED THAT at any meeting the business
of

 

312

 

which includes the passing of an Extraordinary
Resolution to sanction any of the following matters (each a Basic Terms
Modification) namely:

 

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

 

(b)                                 alteration
of the currency in which payments under the Fourth Issuer Notes are to be made;

 

(c)                                  alteration
of the quorum or majority required to pass an Extraordinary Resolution in
respect of any such Basic Terms Modification; and

 

(d)                                 alteration
of this proviso or the proviso to paragraph 6 below,

 

the quorum for passing the requisite Extraordinary
Resolution shall be two or more persons present holding Fourth Issuer Notes or
voting certificates or being proxies or representatives and holding or
representing in the aggregate not less than three quarters (or, at any
adjourned meeting, not less than one quarter) of the Principal Amount
Outstanding of the Fourth Issuer Notes for the time being outstanding.

 

6.                                       If
within 15 minutes (or such longer period not exceeding 30 minutes as the
Chairman may decide) after the time appointed for any such meeting a quorum is
not present for the transaction of any particular business, then, subject and
without prejudice to the transaction of the business (if any) for which a
quorum is present, the meeting shall if convened upon the requisition of
Noteholders be dissolved.  In any other
case it shall stand adjourned to the same day in the next week (or if such day
is a public holiday the next succeeding Business Day) at the same time and
place (except in the case of a meeting at which an Extraordinary Resolution is
to be proposed in which case it shall stand adjourned for such period, being
not less than 13 clear days nor more than 42 clear days, and to such place as
may be appointed by the Chairman either at or subsequent to such meeting and
approved by the Note Trustee).  If
within 15 minutes (or such longer period not exceeding 30 minutes as the
Chairman may decide) after the time appointed for any adjourned meeting a
quorum is not present for the transaction of any particular business, then,
subject and without prejudice to the transaction of the business (if any) for
which a quorum is present, the Chairman may either (with the approval of the
Note Trustee) dissolve such meeting or adjourn the same for such period, being
not less than 13 clear days (but without any maximum number of clear days), and
to such place as may be appointed by the Chairman either at or subsequent to
such adjourned meeting and approved by the Note Trustee, and the provisions of
this sentence shall apply to all further adjourned such meetings.  At any adjourned meeting one or more persons
present holding Definitive Fourth Issuer Notes or voting certificates or being
proxies or representatives (whatever the principal amount of the Fourth Issuer
Notes so held or represented by them) shall (subject as provided below) form a
quorum and shall (subject as provided below) have power to pass any
Extraordinary Resolution or other resolution and to decide upon all matters
which could properly have been dealt with at the meeting from which the
adjournment took place had the requisite quorum been present PROVIDED
THAT at any adjourned meeting the quorum for the transaction of
business comprising any of the matters specified in the proviso to paragraph 5
above shall be one or more persons present holding Definitive Fourth Issuer
Notes or voting certificates or being proxies or representatives and holding or
representing in the aggregate not less than one-third of the principal amount
of the Fourth Issuer Notes for the time being outstanding.

 

313

 

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

 

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

 

9.                                       At
any meeting unless a poll is (before or on the declaration of the result of the
show of hands) demanded by the Chairman, the Fourth Issuer, the Note Trustee or
any person present holding a Definitive Fourth Issuer Note or a voting
certificate or being a proxy or representative (whatever the principal amount
of the Fourth Issuer Notes so held or represented by him) a declaration by the
Chairman that a resolution has been carried or carried by a particular majority
or lost or not carried by a particular majority shall be conclusive evidence of
the fact without proof of the number or proportion of the votes recorded in
favour of or against such resolution.

 

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

 

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

 

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

 

13.                                 The
Note Trustee and its lawyers and any director, officer or employee of a corporation
being a trustee of the Fourth Issuer Trust Deed and any director or officer of
the Fourth Issuer and its lawyers and any other person authorised so to do by
the Note Trustee may attend and speak at any meeting.  Save as aforesaid, but without prejudice to the definition of
Principal Amount Outstanding, no person shall be entitled to attend and speak
nor shall any person be entitled to vote at any meeting of the Noteholders or
join with others in requesting the convening of such a meeting or to exercise
the rights conferred on the Noteholders by Clause 10 of the Fourth Issuer Trust
Deed unless he either produces Fourth Issuer Note(s) or a voting certificate or
is a proxy or a representative or is the holder of a Definitive Fourth Issuer
Note or Definitive Fourth Issuer Notes. 
No person shall be entitled to vote at any meeting in respect of Fourth
Issuer Notes held by, for the benefit of, or on behalf of, the Fourth Issuer or
the Borrowers.  Nothing herein shall
prevent any of the proxies named in any block voting instruction or form of
proxy or any representative from being a director, officer or representative of
or otherwise connected with the Fourth Issuer.

 

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

 

(a)                                  on
a show of hands every person who is present in person and produces a voting
certificate or is a holder of Fourth Issuer Notes or is a proxy or
representative shall have one vote; and

 

314

 

(b)                                 on
a poll every person who is so present shall have one vote in respect of each
£1, U.S.$1 or €1 (or such other
amount as the Note Trustee may in its absolute discretion stipulate) in
principal amount of the Fourth Issuer Notes represented by the voting
certificate so produced or in respect of which he is a proxy or representative
or in respect of which he is the holder.

 

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

 

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

 

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

 

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

 

18.                                 Subject
always to the provisions of Clause 18 of the Fourth Issuer Trust Deed and
Section 316(b) of the Trust Indenture Act, a meeting of the Noteholders shall
in addition to the powers hereinbefore given have the following powers exercisable
only by Extraordinary Resolution (subject to the provisions relating to quorum
contained in paragraphs 5 and 6 above) namely:

 

(a)                                  power
to sanction any compromise or arrangement proposed to be made between the
Fourth Issuer, the Note Trustee, any appointee of the Note Trustee and the
Noteholders or any of them;

 

(b)                                 power
to sanction any abrogation, modification, compromise or arrangement in respect
of the rights of the Note Trustee, any appointee of the Note Trustee, the
Noteholders or the Fourth Issuer against any other or others of them or against
any other party to any of the Transaction Documents or against any of their
property whether such rights shall arise under the Fourth Issuer Trust Deed,
any other Transaction Document or otherwise;

 

315

 

(c)                                  power
to assent to any modification of the provisions of the Conditions, the Fourth
Issuer Trust Deed or any other Transaction Document which shall be proposed by
the Fourth Issuer, the Note Trustee, or any Noteholder or any other person;

 

(d)                                 power
to give any authority or sanction which under the provisions of the Conditions
or the Fourth Issuer Trust Deed is required to be given by Extraordinary
Resolution;

 

(e)                                  power
to appoint any persons (whether Noteholders or not) as a committee or
committees to represent the interests of the Noteholders and to confer upon
such committee or committees any powers or discretions which the Noteholders
could themselves exercise by Extraordinary Resolution;

 

(f)                                    power
to approve of a person to be appointed a trustee and power to remove any
trustee or trustees for the time being of the Fourth Issuer Trust Deed;

 

(g)                                 power
to discharge or exonerate the Note Trustee and/or any appointee of the Note
Trustee from all liability in respect of any act or omission for which the Note
Trustee and/or such appointee may have become responsible under the Fourth
Issuer Trust Deed;

 

(h)                                 power
to authorise the Note Trustee and/or any appointee of the Note Trustee to
concur in and execute and do all such deeds, instruments, acts and things as
may be necessary to carry out and give effect to any Extraordinary Resolution;
and

 

(i)                                     power
to sanction any scheme or proposal for the exchange or sale of the Fourth
Issuer Notes for or the conversion of the Fourth Issuer Notes into or the
cancellation of the Fourth Issuer Notes in consideration of shares, stock,
notes, bonds, debentures, debenture stock and/or other obligations and/or notes
of the Fourth Issuer or any other company formed or to be formed, or for or
into or in consideration of cash, or partly for or into or in consideration of
such shares, stock, notes, bonds, debentures, debenture stock and/or other
obligations and/or notes as aforesaid and partly for or into or in consideration
of cash and for the appointment of some person with power on behalf of the
Noteholders to execute an instrument of transfer of the Definitive Fourth
Issuer Notes held by them in favour of the persons with or to whom the Fourth
Issuer Notes are to be exchanged or sold respectively,

 

PROVIDED
THAT:

 

(i)                                     no
Extraordinary Resolution of the Class A Fourth Issuer Noteholders or the Class
B Fourth Issuer Noteholders or the Class M Fourth Issuer Noteholders or the
Class C Fourth Issuer Noteholders to sanction a modification of the Conditions,
the Fourth Issuer Trust Deed or any of the other Transaction Documents or a
waiver or authorisation of any breach or proposed breach of any of the
provisions of the Conditions, the Fourth Issuer Trust Deed or any of the other
Transaction Documents shall be effective for any purpose unless either:

 

(A)                              the
Note Trustee is of the opinion that it will not be materially prejudicial to
the interests of (in the case of an Extraordinary Resolution of the Class A
Fourth Issuer Noteholders) the Class B Fourth Issuer Noteholders, the Class M
Fourth Issuer Noteholders and the Class C Fourth Issuer Noteholders or (in the
case of an Extraordinary Resolution of the Class B Fourth Issuer Noteholders)
the Class M Fourth Issuer Noteholders and Class C Fourth Issuer Noteholders (in
the case of an Extraordinary Resolution of the Class M Fourth Issuer
Noteholders) the Class C Fourth Issuer Noteholders; or

 

316

 

(B)                                it
shall have been sanctioned by an Extraordinary Resolution of (in the case of an
Extraordinary Resolution of the Class A Fourth Issuer Noteholders) the Class B
Fourth Issuer Noteholders, the Class M Fourth Issuer Noteholders, and the Class
C Fourth Issuer Noteholders or (in the case of an Extraordinary Resolution of
the Class B Fourth Issuer Noteholders) the Class M Fourth Issuer Noteholders
and the Class C Fourth Issuer Noteholders or (in the case of an Extraordinary
Resolution of the Class M Fourth Issuer Noteholders) the Class C Fourth Issuer
Noteholders;

 

(ii)                                  no
Extraordinary Resolution of the Class B Fourth Issuer Noteholders shall be
effective for any purpose while any Class A Fourth Issuer Notes remain
outstanding unless either (A) the Note Trustee is of the opinion that it will
not be materially prejudicial to the interests of the Class A Fourth Issuer
Noteholders or (B) it is sanctioned by an Extraordinary Resolution of the Class
A Fourth Issuer Noteholders;

 

(iii)                               no
Extraordinary Resolution of the Class M Fourth Issuer Noteholders shall be
effective for any purpose while any Class B Fourth Issuer Notes or Class A
Fourth Issuer Notes remain outstanding unless either (A) the Note Trustee is of
the opinion that it will not be materially prejudicial to the interests of the
Class A Fourth Issuer Noteholders and/or the Class B Fourth Issuer Noteholders
(as the case may be) or (B) it is sanctioned by an Extraordinary Resolution of
the Class A Fourth Issuer Noteholders and/or the Class B Fourth Issuer
Noteholders (as the case may be); and

 

(iv)                              no
Extraordinary Resolution of the Class C Fourth Issuer Noteholders shall be
effective for any purpose while any Class M Fourth Issuer Notes or Class B
Fourth Issuer Notes or Class A Fourth Issuer Notes remain outstanding unless
either (A) the Note Trustee is of the opinion that it will not be materially
prejudicial to the interests of the Class A Fourth Issuer Noteholders and/or
the Class B Fourth Issuer Noteholders and/or the Class M Fourth Issuer
Noteholders (as the case may be) or (B) it is sanctioned by an Extraordinary
Resolution of the Class A Fourth Issuer Noteholders and/or the Class B Fourth
Issuer Noteholders and/or the Class M Fourth Issuer Noteholders (as the case
may be).

 

19.                                 Subject
to the provisos to paragraph 18 and to the provisions of Section 316(b) of the
Trust Indenture Act, any resolution passed at a meeting of the Noteholders duly
convened and held in accordance with the Fourth Issuer Trust Deed shall be
binding upon the Noteholders of all classes whether present or not present at
such meeting and whether or not voting and each of them shall be bound to give
effect thereto accordingly and the passing of any such resolution shall be
conclusive evidence that the circumstances justify the passing thereof.  Notice of the result of the voting on any
resolution duly considered by the Noteholders shall be given by the Fourth
Issuer to the Noteholders in accordance with Condition 14 within 14 days of
such result being known PROVIDED THAT the non-publication of such
notice shall not invalidate such result.

 

20.                                 (a)                                  A
resolution which in the opinion of the Note Trustee affects the interests of
the holders of one class only of the Class A Fourth Issuer Notes shall be
deemed to have been duly passed if passed at a meeting of the holders of the Class
A Fourth Issuer Notes of that class.

 

(b)                                 A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of any two or more classes of the Class A Fourth Issuer Notes but
does not give rise to a conflict of interest between the holders of such two or
more classes of the Class A Fourth Issuer Notes, shall be deemed to have been
duly passed if passed

 

317

 

at a single meeting of the holders of such two or
more classes series of the Class A Fourth Issuer Notes.

 

(c)                                  A
resolution which in the opinion of the Note Trustee affects the interests of
the holders of any two or more classes of the Class A Fourth Issuer Notes and
gives or may give rise to a conflict of interest between the holders of such
two or more classes of the Class A Fourth Issuer Notes shall be deemed to have
been duly passed only if, in lieu of being passed at a single meeting of the
holders of such two or more classes of the Class A Fourth Issuer Notes, it
shall be duly passed at separate meetings of the holders of such two or more
classes of the Class A Fourth Issuer Notes.

 

(d)                                 In
the case of a single meeting of the holders of the two or more classes of the
Class A Fourth Issuer Notes which are not all denominated in the same currency,
the Principal Amount Outstanding of any Class A Fourth Issuer Note denominated
in dollars shall be converted into sterling at the relevant Dollar Currency
Swap Rate and the Principal Amount Outstanding of any Class A Fourth Issuer Note
denominated in euro shall be converted into sterling at the relevant Euro
Currency Swap Rate.

 

21.                                 (a)                                  A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of one class only of the Class B Fourth Issuer Notes shall be
deemed to have been duly passed if passed at a meeting of the holders of the
Class B Fourth Issuer Notes of that class.

 

(a)                                  A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of any two or more classes of the Class B Fourth Issuer Notes but
does not give rise to a conflict of interest between the holders of such two or
more classes of the Class B Fourth Issuer Notes, shall be deemed to have been
duly passed if passed at a single meeting of the holders of such two or more
classes of the Class B Fourth Issuer Notes.

 

(b)                                 A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of any two or more classes of the Class B Fourth Issuer Notes and
gives or may give rise to a conflict of interest between the holders of such
two or more classes of the Class B Fourth Issuer Notes, shall be deemed to have
been duly passed only if, in lieu of being passed at a single meeting of the
holders of such two or more classes of the Class B Fourth Issuer Notes, it
shall be duly passed at separate meetings of the holders of such two or more
classes of the Class B Fourth Issuer Notes.

 

(c)                                  In
the case of a single meeting of the holders of the two or more classes of the
Class B Fourth Issuer Notes which are not all denominated in the same currency,
the Principal Amount Outstanding of any Class B Fourth Issuer Note denominated
in dollars shall be converted into sterling at the relevant Dollar Currency
Swap Rate and the Principal Amount Outstanding of any Class B Fourth Issuer
Note denominated in euro shall be converted into sterling at the relevant Euro
Currency Swap Rate.

 

22.                                 (a)                                  A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of one class only of the Class M Fourth Issuer Notes shall be
deemed to have been duly passed if passed at a meeting of the holders of the
Class M Fourth Issuer Notes of that class.

 

(b)                                 A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of any two or more classes of the Class M Fourth Issuer Notes but
does not give rise to a conflict of interest between the holders of such two or
more classes of the Class M Fourth Issuer Notes, shall be deemed to have been
duly passed if passed

 

318

 

at a single meeting of the holders of such two or
more classes of the Class M Fourth Issuer Notes.

 

(c)                                  A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of any two or more classes of the Class M Fourth Issuer Notes and
gives or may give rise to a conflict of interest between the holders of such
two or more classes of the Class M Fourth Issuer Notes, shall be deemed to have
been duly passed only if, in lieu of being passed at a single meeting of the
holders of such two or more classes of the Class M Fourth Issuer Notes, it
shall be duly passed at separate meetings of the holders of such two or more
classes of the Class M Fourth Issuer Notes.

 

(d)                                 In
the case of a single meeting of the holders of the two or more classes of the
Class M Fourth Issuer Notes which are not all denominated in the same currency,
the Principal Amount Outstanding of any Class M Fourth Issuer Note denominated
in dollars shall be converted into sterling at the relevant Dollar Currency
Swap Rate and the Principal Amount Outstanding of any Class M Fourth Issuer
Note denominated in euro shall be converted into sterling at the relevant Euro
Currency Swap Rate.

 

23.                                 (a)                                  A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of one class only of the Class C Fourth Issuer Notes shall be
deemed to have been duly passed if passed at a meeting of the holders of the
Class C Fourth Issuer Notes of that class.

 

(b)                                 A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of any two or more classes of the Class C Fourth Issuer Notes but
does not give rise to a conflict of interest between the holders of such two or
more classes of the Class C Fourth Issuer Notes, shall be deemed to have been
duly passed if passed at a single meeting of the holders of such two or more
classes of the Class C Fourth Issuer Notes.

 

(c)                                  A
resolution which, in the opinion of the Note Trustee, affects the interests of
the holders of any two or more classes of the Class C Fourth Issuer Notes and
gives or may give rise to a conflict of interest between the holders of such
two or more classes of the Class C Fourth Issuer Notes, shall be deemed to have
been duly passed only if, in lieu of being passed at a single meeting of the
holders of such two or more classes of the Class C Fourth Issuer Notes, it
shall be duly passed at separate meetings of the holders of such two or more
classes of the Class C Fourth Issuer Notes.

 

(d)                                 In
the case of a single meeting of the holders of the two or more classes of the
Class C Fourth Issuer Notes which are not all denominated in the same currency,
the Principal Amount Outstanding of any Class C Fourth Issuer Note denominated
in dollars shall be converted into sterling at the relevant Dollar Currency
Swap Rates and the Principal Amount Outstanding of any Class C Fourth Issuer
Note denominated in euro shall be converted into sterling at the relevant Euro
Currency Swap Rate.

 

24.                                 The
expression Extraordinary Resolution when used in the Fourth Issuer Trust
Deed means (a) a resolution passed at a meeting of the Noteholders of a
relevant class of Fourth Issuer Notes duly convened and held in accordance with
the provisions of this SCHEDULE 4 by a majority consisting of not less than
three-fourths of the persons voting thereat upon a show of hands or if a poll
is duly demanded by a majority consisting of not less than three-fourths of the
votes cast on such poll or (b) a resolution in writing signed by or on behalf
of all the Noteholders of a relevant class of Fourth Issuer Notes, which
resolution in writing may be

 

319

 

contained in one document or in several documents
in like form each signed by or on behalf of one or more of the Noteholders of a
relevant class of Fourth Issuer Notes.

 

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

 

26.                                 Subject
to all other provisions of the Fourth Issuer Trust Deed the Note Trustee may
without the consent of the Fourth Issuer or the Noteholders prescribe such
further regulations regarding the requisitioning and/or the holding of meetings
of Noteholders and attendance and voting thereat as the Note Trustee may in its
sole discretion think fit.

 

320

 

SIGNATORIES

 

 

	
  The Fourth Issuer

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED by

  	
  )

  
	
  PERMANENT FINANCING (NO. 4) PLC

  	
  )

  
	
  acting by two directors/a

  	
  )

  
	
  director and the secretary

  	
  )

  
	
   

  	
   

  
	
  Director

  	
   

  
	
   

  	
   

  
	
  Director/Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The Note Trustee

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED by

  	
  )

  
	
  THE BANK OF NEW YORK

  	
  )

  
	
  acting by its authorised signatory

  	
  )

  
	
   

  	
   

  
	
  Authorised Signatory:

  	
   

  

 

321

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