Document:

EXHIBIT 4(c)(3)

                                                                  CONFORMED COPY

                               Dated June 28, 2002

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.
                                    as Issuer

                                     - and -

                         THE BEAR STEARNS COMPANIES INC.
                                  as Guarantor

                                     - and -

                               JPMORGAN CHASE BANK
                                    as Agent

                                     - and -

                               JPMORGAN CHASE BANK
                                  as Registrar

                       BEAR, STEARNS INTERNATIONAL LIMITED
                                     - and -
                            BEAR, STEARNS & CO. INC.
                                   as Dealers

                                     - and -

                the other parties named herein as Paying Agents,
                       Transfer Agents and Exchange Agent

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

                           SECOND AMENDED AND RESTATED
                             NOTE ISSUANCE AGREEMENT

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

                                  ALLEN & OVERY
                                    New York
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                                TABLE OF CONTENTS

Clause                                                                    Page

1.    Definitions and Interpretation.........................................2
2.    Agreements to Issue and Purchase Notes................................11
3.    Conditions of Issue, Updating of Legal Opinions.......................13
4.    Representations and Warranties........................................15
5.    Dealers' Undertakings.................................................19
6.    Undertakings of the Issuer and the Guarantor..........................19
7.    Dealers' Indemnity....................................................22
8.    Agents' Indemnity.....................................................23
9.    Fees, Expenses and Stamp Duties.......................................23
10.   Termination of Appointment of Programme Dealers.......................24
11.   Appointment of Dealers................................................25
12.   Increase in the Aggregate Nominal Amount of the Notes to be Issued
      Under the Agreement ..................................................25
13.   Currency Indemnity....................................................26
14.   Stabilisation.........................................................26
15.   Appointment of Agent, Other Paying Agents, Registrar, Transfer
      Agents and Exchange Agent.............................................26
16.   Issue of Bearer Global Notes and Registered Global Notes..............29
17.   Determination of Exchange Date, Issue of Permanent Bearer Global
      Notes, Issue of Definitive Bearer Global Notes, Determination of
      Distribution Compliance Period and Elimination of Chill Order.........30
18.   Issue of Definitive Notes.............................................31
19.   Terms of Issue........................................................32
20.   Exchange and Transfer of Notes........................................33
21.   Payments and Deliveries...............................................34
22.   Determinations and Notifications in Respect of Notes and Interest
      Determination 37
23.   Notice of any Withholding or Deduction................................39
24.   Other Duties of the Registrar.........................................39
25.   Duties of the Transfer Agents.........................................41
26.   Regulations for Transfers and Exchanges of Registered Notes and
      Exchange of Bearer Notes..............................................42
27.   Duties in Connection with Early Redemption............................42
28.   Receipt and Publication of Notices....................................43
29.   Cancellation of Definitive Notes, Receipts, Coupons and Talons........43
30.   Issue of Replacement Notes, Receipts, Coupons and Talons..............45
31.   Copies of Documents Available for Inspection..........................46
32.   Meetings of Noteholders...............................................47
33.   Commissions and Expenses..............................................47
34.   Authority to Distribute Documents.....................................48
35.   Repayment by the Agent and the Registrar..............................48
36.   Conditions of Appointment.............................................48
37.   Communication Between the Parties.....................................49
38.   Changes in Agent, Paying Agents, Transfer Agents, Exchange
      Agent, Registrar and Settlement Agent.................................50
39.   Merger and Consolidation..............................................52

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40.   Notification of Changes to Agents.....................................52
41.   Change of Specified Office............................................53
42.   Calculation Agency Agreement..........................................53
43.   Communications........................................................53
44.   Taxes and Stamp Duties................................................53
45.   Benefit of Agreement..................................................54
46.   Amendments............................................................54
47.   Governing Law and Jurisdiction........................................54
48.   Contracts (Rights of Third Parties) Act 1999 Disapplication...........55
49.   Counterparts..........................................................55
50.   Effective Date........................................................55

Schedules

1.    Terms and Conditions of the Notes.....................................56
2.    Part I-Form of Temporary Bearer Global Note...........................93
      Part II-Form of Permanent Bearer Global Note.........................102
      Part III-Forms of Registered Global Notes............................111
      Part IVA-Form of Definitive Bearer Note..............................120
      Part IVB-Form of Definitive Registered Note..........................124
      Part V-Form of Receipt...............................................130
      Part VI-Form of Coupon...............................................132
      Part VII-Form of Talon...............................................134
      Part VIII-Form of Certificate to be Presented by Euroclear or
      Clearstream, Luxembourg .............................................137
3.    Provisions for Meetings of Noteholders...............................141
4.    Form of Put Notice...................................................149
5.    Selling Restrictions.................................................151
6.    Form of Procedures Memorandum........................................157
7A.   Form of Transfer Notice - Euroclear and Clearstream, Luxembourg......178
7B.   Form of Transfer Notice - DTC........................................181
8.    Part I-Form of Exchange Request......................................183
      Part II-Form of Certificate for Exchange or Transfer of Registered
      Notes or Beneficial Interest in Registered Notes.....................185
9.    Institutional Accredited Investor Investment Letter..................187
10.   Register and Transfer of Registered Notes............................189
11.   Initial Documentation List...........................................191
12.   Letter Regarding Increase in the Nominal Amount of the Programme.....193
13.   Part I-Form of Programme Dealer Accession Letter.....................194
      Part II-Form of Confirmation Letter - Programme Dealer...............195
      Part III-Form of Issue Dealer Accession Letter.......................196
      Part IV-form of Confirmaiton Letter - Issue Dealer...................197
14.   Draft Syndication Agreement for a Syndicated Note Issue..............198
Signatories................................................................203

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               SECOND AMENDED AND RESTATED NOTE ISSUANCE AGREEMENT

                                 in respect of a

                             NOTE ISSUANCE PROGRAMME

THIS AGREEMENT is made on June 28, 2002 BETWEEN:

(1)   BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD. of P.O. Box 309, George Town,
      Grand Cayman, Cayman Islands, BWI (the "Issuer");

(2)   THE BEAR STEARNS COMPANIES INC. of 383 Madison Avenue, New York, NY 10179
      (the "Guarantor");

(3)   JPMORGAN CHASE BANK through its office at Trinity Tower, 9 Thomas More
      Street, London E1W 1YT (the "Agent", which expression shall include any
      successor agent appointed in accordance with clause 38);

(4)   JPMORGAN CHASE BANK through its office at 450 West 33rd Street, 15th
      Floor, New York, NY 10001 (the "Registrar", which expression shall include
      any successor registrar appointed in accordance with clause 38);

(5)   JPMORGAN CHASE BANK through its office at Trinity Tower, 9 Thomas More
      Street, London E1W 1YT (together with the Registrar, the "Transfer
      Agents", which expression shall include any additional or successor
      transfer agent appointed in accordance with clause 38 and "Transfer Agent"
      shall mean any of the Transfer Agents);

(6)   JPMORGAN CHASE BANK of 450 West 33rd Street, 15th Floor, New York, NY
      10001 (the "Exchange Agent", which expression shall include any successor
      exchange agent appointed in accordance with clause 38);

(7)   KREDIETBANK S.A. LUXEMBOURGEOISE through its office at 43, Boulevard
      Royal, L-2955 Luxembourg, R.C. Luxembourg B6395 (together with the Agent,
      the "Paying Agents", which expression shall include any additional or
      successor paying agent appointed in accordance with clause 38 and "Paying
      Agent" shall mean any of the Paying Agents);

(8)   BEAR, STEARNS INTERNATIONAL LIMITED of One Canada Square, London E14 5AD
      in its capacity as a dealer ("BSIL"); and

(9)   BEAR, STEARNS & CO. INC. of 383 Madison Avenue, New York, NY 10179 in its
      capacity as a dealer ("Bear Stearns & Co." and, together with BSIL, the
      "Programme Dealers", which expression shall include any additional or
      successor dealers acceding from time to time to this Agreement in such
      form as the Issuer and the Guarantor may require).

WHEREAS:

(A)   The parties hereto entered into an Amended and Restated Note Issuance
      Agreement dated 30th June, 2000 between the Issuer, the Guarantor,
      JPMorgan Chase Bank (as Agent, Registrar, Transfer Agent and Exchange
      Agent), Kredietbank S.A. Luxembourgeoise (as a paying Agent), BSIL and
      Bear Stearns & Co. Inc. (the "Amended and Restated Agreement") in respect
      of a U.S.$1,500,000,000 Note Issuance Programme established by

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      the Issuer (the "Programme") which amended and restated a Note Issuance
      Agreement dated 24th June, 1997 (the "Original Agreement").

(B)   By a resolution of the board of directors of the Issuer passed on or about
      June 24, 1997, and by resolution of the executive committee of the board
      of directors of the Guarantor passed on or about June 23, 1997, the Issuer
      and the Guarantor resolved to enter into the Original Agreement pursuant
      to which the Issuer may issue from time to time Notes (the "Notes"). By
      resolution of the board of directors of the Issuer passed on June 26, 2002
      and by resolution of the executive committee of the board of directors of
      the Guarantor passed on June 17, 2002 the Issuer and the Guarantor
      resolved to amend and restate the Amended and Restated Agreement.

(C)   The Notes will be unconditionally and irrevocably guaranteed by the
      Guarantor in accordance with the Guarantee.

(D)   This Agreement is being entered into for the purpose of, inter alia,
      making certain changes to the Amended and Restated Agreement and with the
      intention that this Agreement will supersede and replace the Amended and
      Restated Agreement with effect from the date of this Agreement. Any Notes
      issued on or after the date hereof shall be issued pursuant to this
      Agreement. This does not affect any Notes issued under the Amended and
      Restated Agreement before the date of this Agreement.

IT IS HEREBY AGREED as follows:

1.    DEFINITIONS AND INTERPRETATION

(1)   Terms and expressions defined in the Notes or used in the applicable
      Pricing Supplement shall have the same meanings in this Agreement, except
      where the context requires otherwise or unless otherwise stated.

(2)   Without prejudice to the foregoing:

      "Agreement Date" means, in respect of any Note, the date on which
      agreement is reached for the issue of such Note as contemplated in clause
      2 which, in the case of Notes issued on a syndicated basis, shall be the
      date of execution of the relevant syndication agreement;

      "Bearer Global Note" means a Temporary Bearer Global Note and/or a
      Permanent Bearer Global Note, as the context may require;

      "Bearer Notes" means those of the Notes which are for the time being in
      bearer form;

      "Calculation Agent" means, in respect of any Series of Notes, the
      calculation agent as nominated in the Pricing Supplement in relation to
      such Series;

      "Calculation Agency Agreement" means, in respect of any Series of Notes,
      the agreement entered into in accordance with the terms of this Agreement
      between the Issuer, the Guarantor and the Agent or such other person as
      the Issuer and Guarantor decide pursuant to which the calculation agent in
      respect of such Series is appointed;

      "Clearstream, Luxembourg" means Clearstream Banking, societe anonyme;

      "Conditions" means, in relation to the Notes of any Series, the terms and
      conditions incorporated into, or incorporated by reference into, the Note
      or Notes constituting such

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      Series, such terms and conditions being either in the form or
      substantially in the form set out in Schedule 1 hereto or in such other
      form, having regard to the terms of issue of the relevant Series, as may
      be agreed between the Issuer, the Agent and the relevant Dealer as
      modified and supplemented by the Pricing Supplement applicable thereto;

      "Confirmation Letter" means:

      (a)   in respect of the appointment of a third party as a Programme
            Dealer, the Confirmation Letter substantially in the form set out in
            Part II of Schedule 13; and

      (b)   in respect of the appointment of a third party as an Issue Dealer,
            the Confirmation Letter substantially in the form set out in Part IV
            of Schedule 13;

      "Coupon" means an interest coupon appertaining to a Definitive Bearer Note
      (other than a Zero Coupon Note), such coupon being:

      (a)   if appertaining to a Fixed Rate Note, in the form or substantially
            in the form set out in Part VI A of Schedule 2 hereto or in such
            other form, having regard to the terms of issue of the Notes of the
            relevant Series, as may be agreed between the Issuer, the Agent and
            the relevant Dealer; or

      (b)   if appertaining to a Floating Rate Note or an Indexed Interest Note,
            in the form or substantially in the form set out in Part VI B of
            Schedule 2 hereto or in such other form, having regard to the terms
            of issue of the Notes of the relevant Series, as may be agreed
            between the Issuer, the Agent and the relevant Dealer; or

      (c)   if appertaining to a Definitive Bearer Note which is neither a Fixed
            Rate Note nor a Floating Rate Note nor an Indexed Interest Note, in
            such form as may be agreed between the Issuer, the Agent and the
            relevant Dealer, and includes, where applicable, the Talon(s)
            appertaining thereto and any replacements for Coupons and Talons
            issued pursuant to Condition 11;

      "Couponholders" means the several persons who are for the time being
      holders of the Coupons and shall, unless the context otherwise requires,
      include the holders of the Talons;

      "Dealer" means a Programme Dealer or an Issue Dealer and excludes any
      entity whose appointment has been terminated pursuant to clause 10 and
      notice of termination of whose appointment has been given to the Agent by
      the Issuer and references in this Agreement:

      (a)   to the "relevant Dealer" shall, in relation to any Note, be
            references to the Dealer or Dealers with whom the Issuer has agreed
            the issue and purchase of such Note; and

      (b)   to the "Dealers" shall be references to all the Dealers or, as the
            context may require, some only of them;

      "Dealer Accession Letter" means:

      (a)   in respect of the appointment of a third party as a Programme
            Dealer, the Dealer Accession Letter substantially in the form set
            out in Part I of Schedule 13; and

      (b)   in respect of the appointment of a third party as an Issue Dealer,
            the Dealer Accession Letter substantially in the form set out in
            Part III of Schedule 13;

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      "Deed of Covenant" means the deed poll dated June 28, 2002 executed as a
      deed by the Issuer in favour of certain accountholders with Euroclear and
      Clearstream, Luxembourg;

      "Definitive Bearer Note" means a Bearer Note in definitive form
      substantially in the form set out in Part IV A of Schedule 2 hereto (or in
      such other form as may be agreed between the Issuer, the Agent and the
      relevant Dealer) issued or to be issued by the Issuer pursuant to this
      Agreement in exchange for a bearer global Note or part of a bearer global
      Note;

      "Definitive Note" means Definitive Bearer Notes and/or, as the context may
      require, Definitive Registered Notes;

      "Definitive Registered Note" means a Registered Note in definitive form
      substantially in the form set out in Part VI B of Schedule 2 hereto for in
      such other form as may be agreed between the Issuer, the Agent and the
      relevant Dealer issued or to be issued by the Issuer pursuant to this
      Agreement to an Accredited Investor (as defined in Rule 501(a) (1), (2),
      (3) or (7) under the Securities Act) that is an institution who agrees to
      purchase the Note for his own account and not with a view to the
      distribution thereof or in exchange for a Restricted Global Note or a Reg.
      S Global Note or part thereof;

      "DTC" means The Depository Trust Company with an office at 55 Water
      Street, New York, NY 10041;

      "Dual Currency Note" means a Note in respect of which payments of
      principal and/or interest are made or to be made in such different
      currencies, and at rates of exchange calculated upon such basis or bases,
      as the Issuer and the relevant Dealer may agree (as indicated in the
      applicable Pricing Supplement);

      "euro" means the currency introduced at the start of the third stage of
      European economic and monetary union pursuant to the Treaty establishing
      the European Community, as amended by the Treaty on European Union and as
      amended by the Treaty of Amsterdam;

      "Euroclear" means Euroclear Bank S.A./N.V., as operator of the Euroclear
      system;

      "Event of Default" has the meaning ascribed thereto in the Conditions;

      "Extraordinary Resolution" has the meaning set out in paragraph 20 of
      Schedule 3 hereto;

      "Fixed Rate Note" means a Note on which interest is calculated at a fixed
      rate payable in arrear on a fixed date or dates in each year and on
      redemption or on such other dates as may be agreed between the Issuer and
      the relevant Dealer (as indicated in the applicable Pricing Supplement);

      "Floating Rate Note" means a Note on which interest is calculated at a
      floating rate, payable on an Interest Payment Date or Dates, as may be
      agreed between the Issuer and the relevant Dealer (as indicated in the
      applicable Pricing Supplement);

      "Form of Transfer" means the form of transfer endorsed on a Definitive
      Registered Note in the form or substantially in the form set out in Part
      IV B of Schedule 2 hereto;

      "FSMA" means the Financial Services and Markets Act 2000;

      "Global Note" means a Temporary Bearer Global Note and/or a Permanent
      Bearer Global Note and/or a Reg. S Global Note and/or a Restricted Global
      Note, as the context may require;

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      "Group" means the Guarantor and its consolidated subsidiaries;

      "Guarantee" means the deed of guarantee dated June 29, 2001 executed as a
      deed poll by the Guarantor in respect of any Note and in respect of the
      obligations of the Issuer under the Deed of Covenant;

      "Indemnified Person" means each person expressed to be indemnified
      pursuant to Clause 7;

      "Indexed Interest Note" means a Note in respect of which the amount
      payable in respect of interest is calculated by reference to such index
      and/or a formula as the Issuer and the relevant Dealer may agree (as
      indicated in the applicable Pricing Supplement);

      "Indexed Note" means an Indexed Interest Note and/or an Indexed Redemption
      Amount Note, as applicable;

      "Indexed Redemption Amount Note" means a Note in respect of which the
      amount payable in respect of principal is calculated by reference to such
      index and/or a formula as the Issuer and the relevant Dealer may agree (as
      indicated in the applicable Pricing Supplement);

      "Initial Documentation List" means the list of documents set out in
      Schedule 11;

      "Interest Commencement Date" means, in the case of interest-bearing Notes,
      the date specified in the applicable Pricing Supplement from (and
      including) which such Notes bear interest, which may or may not be the
      Issue Date (but if no date is specified shall be the Issue Date);

      "Interest Payment Date" means, in relation to any Floating Rate Note, the
      date which falls the number of months or other period specified as the
      "Interest Period" in the applicable Pricing Supplement after the preceding
      Interest Payment Date or, in the case of the first Interest Period, the
      Interest Commencement Date;

      "Issue" means an issue of Notes with the same Issue Date consisting of one
      or more Tranches of Notes, details of the terms and conditions of which
      are set out in a single Pricing Supplement;

      "Issue Date" means, in respect of any Note, the date of issue and purchase
      of such Note, in each case pursuant to and in accordance with this
      Agreement, being in the case of any Definitive Note represented initially
      by a Temporary Bearer Global Note or a Registered Global Note, the same
      date as the date of issue of the Temporary Bearer Global Note or the
      Registered Global Note which initially represented such Note;

      "Issue Dealer" means an entity appointed as a Dealer for the purposes of a
      particular Issue or Tranche of Notes (whether pursuant to clause 11 or to
      a Syndication Agreement);

      "Issue Price" means the price, generally expressed as a percentage of the
      nominal amount of the Notes, at which the Notes will be issued;

      "Lead Manager" means, in relation to any Issue or Tranche of Notes offered
      on a syndicated basis, the person defined as the Lead Manager in the
      applicable Syndication Agreement;

      "Linked Notes" means a Note in respect of which either the principal
      and/or interest is payable or a Securities Amount is payable and/or
      deliverable, in each case by reference to

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      one or more Underlying Securities as the Issuer and the relevant Dealer
      may agree (as indicated in the applicable Pricing Supplement);

      "Listing Agent" means, in relation to Notes which are, or are to be,
      listed on a Stock Exchange, such listing agent as the Issuer and the
      Guarantor may from time to time appoint for the purposes of liasing with
      such Stock Exchange;

      "Listing Particulars" means any listing particulars or listing documents
      (including any supplementary listing particulars or listing documents
      published in accordance with the provisions of this Agreement or
      otherwise) with regard to the issue of Notes to be listed on a Stock
      Exchange approved under the Listing Rules by the relevant Stock Exchange;

      "Listing Rules" means in the case of Notes which are, or are to be, listed
      on a Stock Exchange, the listing rules and regulations for the time being
      in force for such Stock Exchange;

      "Maturity Date" means, in respect of any Note other than a Floating Rate
      Note, the date on which it is expressed to be redeemable;

      "Note" means a note issued or to be issued by the Issuer pursuant to this
      Agreement, which may be represented by a Bearer Global Note or a
      Registered Global Note or be in definitive form;

      "Noteholders" means the several persons who are for the time being holders
      of the Notes (being, in the case of Bearer Notes, the bearers thereof and,
      in the case of Registered Notes, the several persons whose names are
      entered in the register of holders of the Registered Notes as the holders
      thereof) save that, in respect of the Notes of any Series, for so long as
      such Notes or any part thereof are represented by a Bearer Global Note
      deposited with a common depository for Euroclear and/or Clearstream,
      Luxembourg or so long as DTC or its nominee is the registered holder of a
      Registered Global Note, each person who is for the time being shown in the
      records of Euroclear or of Clearstream, Luxembourg (other than
      Clearstream, Luxembourg, if Clearstream, Luxembourg shall be an account
      holder of Euroclear and Euroclear, if Euroclear shall be an account holder
      of Clearstream, Luxembourg) or, as the case may be, DTC as the holder of a
      particular nominal amount of the Notes of such Series shall be deemed to
      be the holder of such nominal amount of such Notes (and the holder of the
      relevant Global Note shall be deemed not to be the holder) for all
      purposes other than with respect to the payment of principal or interest
      on such Notes, the right to which shall be vested, as against the Issuer
      and the Guarantor, solely in such common depositary or, as the case may
      be, DTC or its nominee and for which purpose such common depositary or, as
      the case may be, DTC or its nominee shall be deemed to be the holder of
      such nominal amount of such Notes in accordance with and subject to its
      terms and the provisions of the relevant Global Note and these presents
      and the expressions "Noteholder", "holder of Notes" and related
      expressions shall be construed accordingly;

      "Offering Circular" means the Offering Circular relating to the Notes
      prepared in connection with this Agreement and constituting (in the case
      of Notes other than Notes not to be listed on a Stock Exchange) to the
      extent specified herein, the Listing Particulars, as revised,
      supplemented, amended or updated from time to time by the Issuer in
      accordance with clause 6(2) including, in relation to each issue of Notes,
      the Pricing Supplement relating to such Issue and such other documents as
      are from time to time incorporated therein by reference;

      "outstanding" means, in relation to the Notes of all or any Series, all
      the Notes issued other than:

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      (a)   those Notes which have been redeemed pursuant to the Conditions;

      (b)   those Notes in respect of which the date for redemption in
            accordance with the Conditions has occurred and the redemption
            moneys and/or Securities Amount (and all interest payable thereon)
            have been duly paid and/or delivered to or to the order of the Agent
            in the manner provided in this Agreement (and where appropriate
            notice to that effect has been given to the relative Noteholders in
            accordance with Condition 15) and remain available for payment
            and/or delivery against presentation of the relevant Notes and/or
            Receipts and/or Coupons;

      (c)   those Notes which have been purchased and cancelled in accordance
            with Condition 7;

      (d)   those Notes in respect of which claims have become prescribed under
            Condition 9;

      (e)   those mutilated or defaced Notes which have been surrendered and
            cancelled and in respect of which replacements have been issued
            pursuant to Condition 11;

      (f)   (for the purpose only of ascertaining the nominal amount of the
            Notes outstanding and without prejudice to the status for any other
            purpose of the relevant Notes) those Notes which are alleged to have
            been lost, stolen or destroyed and in respect of which replacements
            have been issued pursuant to Condition 11;

      (g)   any Temporary Bearer Global Note to the extent that it shall have
            been exchanged for Definitive Bearer Notes or a Permanent Bearer
            Global Note and any Permanent Bearer Global Note to the extent that
            it shall have been exchanged for Definitive Bearer Notes in each
            case pursuant to its provisions;

      (h)   those Definitive Bearer Notes which have been exchanged for
            Definitive Registered Notes and which have been cancelled or, if
            permitted by the Conditions, are for the time being retained by or
            on behalf of the Issuer, in each case pursuant to the provisions of
            these presents; and

      (i)   those Restricted Notes which have been exchanged for Unrestricted
            Notes and those Unrestricted Notes which have been exchanged for
            Restricted Notes, in each case pursuant to the provisions of these
            presents;

            PROVIDED THAT for each of the following purposes, namely:

            (i)   the right to attend and vote at any meeting of the Noteholders
                  of any Series; and

            (ii)  the determination of how many and which Notes of any Series
                  are for the time being outstanding for the purposes of
                  Conditions 10 and 16 and paragraphs 2, 5, 6 and 9 of Schedule
                  3,

      those Notes of the relevant Series (if any) which are for the time being
      held by, for the benefit of, or on behalf of, the Issuer or the Guarantor,
      or any holding company of the Issuer or the Guarantor or any other
      Subsidiary of the Issuer or the Guarantor or any such holding company
      shall (unless and until ceasing to be so held) be deemed not to remain
      outstanding;

      "Partly Paid Notes" means Notes which are to be issued on a partly paid
      basis;

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      "Permanent Bearer Global Note" means a permanent bearer global note
      substantially in the form set out in Part II of Schedule 2 hereto (or in
      such other form as may be agreed between the Issuer, the Agent and the
      relevant Dealer) issued or to be issued (if indicated in the applicable
      Pricing Supplement) by the Issuer pursuant to this Agreement in exchange
      for the whole or part of any Temporary Bearer Global Note issued in
      respect of Notes of the same Series;

      "Pricing Supplement" means the pricing supplement issued in relation to
      each Tranche of Notes (substantially in the form of Annex D of Schedule 6
      hereto) as a supplement to the Offering Circular and giving details of
      that Tranche;

      "Procedures Memorandum" means the Operating and Administrative Procedures
      Memorandum set out in Schedule 6 hereto as amended or varied from time to
      time (in respect of any Tranche) by agreement between the Issuer and the
      relevant Dealer with the approval in writing of the Agent;

      "Programme Dealer" means each of BSIL and Bear, Stearns & Co. and any
      other Programme Dealer appointed pursuant to clause 11;

      "Programme" means the note issuance programme established by this
      Agreement;

      "Put Notice" means a notice in the form set out in Schedule 4 hereto;

      "Qualified Institutional Buyer" has the meaning set out in Rule 144A under
      the Securities Act;

      "Receipts" means, in respect of Notes repayable in instalments, the
      receipts for the payment of such instalments which are or will be attached
      to the relevant Definitive Bearer Notes on issue;

      "Receiptholders" means the several persons who are for the time being
      holders of the Receipts;

      "Reference Banks" means, in the case of sub-clause 22(2)(a)(i) below,
      those banks whose offered rates were used to determine such quotation when
      such quotation last appeared on the Relevant Screen Page and, in the case
      of sub-clause 22(2)(a)(ii) below, those banks whose offered quotations
      last appeared on the Relevant Screen Page when no fewer than three such
      offered quotations appeared;

      "Registered Notes" means those of the Notes which are for the time being
      in registered form;

      "Reg. S Global Note" means a global Registered Note in the form set out in
      Part III of Schedule 2 hereto issued by the Issuer pursuant to this
      Agreement in respect of Registered Notes of a Series sold in accordance
      with Regulation S under the Securities Act;

      "Relevant Date" has the meaning set out in Condition 9;

      "Restricted Global Note" means a global Registered Note in the form set
      out in Part III of Schedule 2 hereto issued by the Issuer pursuant to this
      Agreement in respect of Registered Notes of a Series sold within the
      United States or to, or for the account or benefit of U.S. persons
      pursuant to an exemption from the registration requirements of the
      Securities Act;

      "Restricted Notes" means Registered Notes represented by the Restricted
      Global Note and Definitive Registered Notes issued in exchange for the
      Restricted Global Note;

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      "Restricted Subsidiary" has the meaning ascribed thereto in Condition 3;

      "Securities Act" means the Securities Act of 1933 of the United States, as
      amended;

      "Securities Amount" has the meaning ascribed thereto in Condition
      6(a)(iii);

      "Series" means a Tranche of the Notes together with any further Tranche or
      Tranches of Notes which are:

      (a)   expressed to be consolidated and form a single series; and

      (b)   identical in all respects (including as to listing) except for their
            respective Issue Dates, Interest Commencement Dates and/or Issue
            Prices and the expressions "Notes of the relevant Series" and
            "holders of Notes of the relevant Series" and related expressions
            shall be construed accordingly;

      "Settlement Disruption Event" has the meaning ascribed thereto in
      Condition 20(a)(i);

      "specified office" means, in relation to any Paying Agent or Transfer
      Agent or the Registrar, either the office identified with its name at the
      end of the Conditions or any other office notified to the Noteholders in
      accordance with Condition 15;

      "Sterling" and "(pound)" means pounds sterling;

      "Stock Exchange" means the Luxembourg Stock Exchange or any other or
      further stock exchange(s) on which any Notes may from time to time be
      listed, and references in this Agreement to the "relevant Stock
      Exchange(s)" shall, in relation to any Notes, be references to the Stock
      Exchange(s) on which such Notes are from time to time, or are intended to
      be, listed;

      "Subsidiary" has the meaning ascribed thereto in Condition 3;

      "Swiss francs" means the lawful currency for the time being of
      Switzerland;

      "Syndication Agreement" means an agreement (by whatever name called) in or
      substantially in the form set out in Schedule 14 or such other form as may
      be agreed between the Issuer, the Guarantor and the Lead Manager;

      "Talonholders" means the several persons who are for the time being
      holders of the Talons;

      "Talons" means the talons (if any) appertaining to, and exchangeable in
      accordance with the provisions therein contained for further Coupons
      appertaining to, a Definitive Bearer Note (other than a Zero Coupon Note),
      such talons being in the form or substantially in the form set out in Part
      VII of Schedule 2 hereto or in such other form as may be agreed between
      the Issuer, the Agent and the relevant Dealer and includes any
      replacements for Talons issued pursuant to Condition 11;

      "Temporary Bearer Global Note" means a temporary bearer global note
      substantially in the form set out in Part I of Schedule 2 hereto (or in
      such other form as may be agreed between the Issuer, the Agent and the
      relevant Dealer) initially representing Notes issued or to be issued by
      the Issuer pursuant to this Agreement and issued in respect of Bearer
      Notes of the same Tranche;

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      "Tranche" means Notes (whether in global or definitive form or both)
      issued hereunder which are identical in all respects (including as to
      listing);

      "Transfer Certificate" means a certificate in the form set out in Schedule
      8;

      "Transfer Notice" means a notice in the form set out in Schedule 7;

      "Unrestricted Notes" means those of the Registered Notes which are not
      Restricted Notes;

      "U.S.$" and "U.S. dollars" means United States dollars;

      "yen" and "(Y)" mean the lawful currency for the time being of Japan; and

      "Zero Coupon Note" means a Note on which no interest is payable.

(3)   (a)   Words denoting the singular number only shall include the plural
            number also and vice versa; words denoting one gender only shall
            include the other gender; and words denoting persons only shall
            include firms and corporations and vice versa.

      (b)   Unless the context otherwise requires, words or expressions used in
            this Agreement, the Notes and the Conditions shall bear the same
            meanings as in the Companies Act 1985 of Great Britain.

(4)   Any references to Notes shall, unless the context otherwise requires,
      include any Temporary Bearer Global Note, any Permanent Bearer Global
      Note, any Reg. S Global Note and any Restricted Global Note representing
      such Notes.

(5)   All references in this Agreement to costs or charges or expenses shall
      include any value added tax or similar tax charged or chargeable in
      respect thereof.

(6)   For the purposes of this Agreement, the Notes of each Series shall form a
      separate series of Notes and the provisions of this Agreement shall apply
      mutatis mutandis separately and independently to the Notes of each Series
      and in this Agreement the expressions "Notes", "Noteholders", "Receipts",
      "Receiptholders", "Coupons", "Couponholders", "Talons" and "Talonholders"
      shall be construed accordingly.

(7)   All references in this Agreement to principal and/or interest or both in
      respect of the Notes or to any moneys payable by the Issuer and/or the
      Guarantor under this Agreement shall have the meaning set out in Condition
      6. In addition, all references in this Agreement to payment or repayment
      (as the case may be) of principal and/or interest or both in respect of
      the Notes or other similar expressions will, where the context so admits,
      be deemed also to refer to delivery of any Securities Amount(s).

(8)   All references in this Agreement to the "relevant currency" shall be
      construed as references to the currency in which the relevant Notes and/or
      Coupons are denominated (or payable in the case of Dual Currency Notes)
      or, in the case of Notes denominated (or payable in the case of Dual
      Currency Notes) in euro (as defined in Condition 4(b)), the chosen
      currency in which payments in respect of such Note are to be made, as the
      case may be.

(9)   In this Agreement, clause headings are inserted for convenience and ease
      of reference only and shall not affect the interpretation of this
      Agreement.

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(10)  All references in this Agreement to the provisions of any statute shall be
      deemed to be references to that statute as from time to time modified,
      extended, amended or re-enacted or to any statutory instrument, order or
      regulation made thereunder or under such re-enactment.

(11)  All references in this Agreement to an agreement, instrument or other
      document (including, without limitation, this Agreement, the Deed of
      Covenant, the Guarantee, the Procedures Memorandum, the Notes and any
      Conditions appertaining thereto) shall be construed as a reference to that
      agreement, instrument or document as the same may be amended, modified,
      varied or supplemented from time to time.

(12)  Any references herein to Euroclear and/or Clearstream, Luxembourg and/or
      DTC shall, whenever the context so permits, be deemed to include a
      reference to any additional or alternative clearance system approved by
      the Issuer, the Guarantor and the Agent.

2.    AGREEMENTS TO ISSUE AND PURCHASE NOTES

(1)   Subject to the terms and conditions of this Agreement, the Issuer may from
      time to time agree with any Dealer to issue, and such Dealer may agree to
      purchase, Notes.

(2)   On each occasion upon which the Issuer and any Dealer agree on the terms
      of the issue and purchase of one or more Notes by such Dealer:

      (a)   the Issuer shall, in accordance with the provisions of the
            Procedures Memorandum, cause such Notes (which may be initially
            represented by a Temporary Bearer Global Note or by a Reg. S Global
            Note or by a Restricted Global Note or by a Definitive Registered
            Note, as the case may be) to be issued and delivered:

            (i)   in the case of a Temporary Bearer Global Note to a common
                  depositary for Euroclear and Clearstream, Luxembourg;

            (ii)  in the case of a Reg. S Global Note or Restricted Global Note,
                  to a custodian for DTC; and

            (iii) in the case of a Definitive Registered Note to or to the order
                  of the holders thereof.

            In the case of (i) and (ii) above, the securities account(s) of such
            Dealer with Euroclear and/or Clearstream, Luxembourg or with DTC (as
            specified by such Dealer) will be credited with such Notes on the
            agreed Issue Date, as described in the Procedures Memorandum; and

      (b)   the relevant Dealer shall, subject (where applicable) to such Notes
            being so credited, cause the net purchase moneys for such Notes to
            be paid in the relevant currency by transfer of funds to the
            relevant account of the Agent, or (in the case of syndicated issues)
            the Issuer, with Euroclear and/or Clearstream, Luxembourg and/or DTC
            so that such payment is credited to such account for value on such
            Issue Date, as described in the Procedures Memorandum.

(3)   Unless otherwise agreed between the Issuer and the relevant Dealer: (i)
      where more than one Dealer has agreed with the Issuer to purchase a
      particular Tranche of Notes pursuant to this clause, the obligations of
      such Dealers to purchase such Notes shall be joint and several; and (ii)
      the relevant Dealer(s) will be assumed to be purchasing the Notes as
      principal for its own account, and not as agent.

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(4)   Where the Issuer agrees with two or more Dealers to issue, and such
      Dealers agree to purchase, Notes on a syndicated basis, the Issuer and the
      Guarantor shall enter into a Syndication Agreement with such Dealers which
      the Programme Dealers agree shall be supplemental to this Agreement
      (notwithstanding that some or all of the Programme Dealers may not be a
      party thereto). For the avoidance of doubt, the Agreement Date in respect
      of such an issue shall be the date upon which the Syndication Agreement is
      signed by or on behalf of all parties thereto.

(5)   The procedures which the parties intend should apply for the purposes of
      non-syndicated issues are set out in Part 1 of the Procedures Memorandum,
      as varied from time to time by agreement between the Issuer, the relevant
      Dealer and the Agent. The procedures which the parties intend should apply
      for the purposes of syndicated issues are set out in Part 2 of the
      Procedures Memorandum, as varied from time to time by agreement between
      the Issuer, the relevant Lead Manager and the Agent.

(6)   The Issuer agrees that each issue of Notes denominated in a currency in
      respect of which particular laws, guidelines, regulations, restrictions or
      reporting requirements apply (including on the date hereof, without
      limitation, Swiss francs, yen, Sterling and U.S. dollars) will only be
      issued in circumstances which comply with such laws, guidelines,
      regulations, restrictions or reporting requirements from time to time.
      Without prejudice to the generality of the foregoing (and on the basis
      that the provisions of paragraphs (a) to (d) below shall only apply to the
      extent necessary to comply with applicable laws, guidelines, regulations,
      restrictions or reporting requirements from time to time):

      (a)   each public issue of Notes denominated in Swiss francs or carrying a
            Swiss franc related element with a maturity of more than one year
            (other than Notes privately placed with a single investor with no
            publicity) will be effected in compliance with the relevant
            regulations of the Swiss National Bank based on article 7 of the
            Federal Law on Banks and Savings Banks of 1934 (as amended) and
            article 15 of the Federal Law on Stock Exchanges and Securities
            Trading of March 24, 1995 in connection with article 2, paragraph 2
            of the Ordinance of the Federal Banking Commission on Stock
            Exchanges and Securities Trading of June 25, 1997. Under the said
            regulations, the relevant Dealer or, in the case of a syndicated
            issue, the lead manager (the "Swiss Dealer") must be a bank
            domiciled in Switzerland (which includes branches or subsidiaries of
            a foreign bank located in Switzerland) or a securities dealer duly
            licensed by the Swiss Federal Banking Commission pursuant to the
            Federal Law on Stock Exchanges and Securities Trading of March 24,
            1995. The Swiss Dealer must report certain details of the relevant
            transaction to the Swiss National Bank no later than the relevant
            issue date for such a transaction;

      (b)   the Issuer will ensure that Notes denominated in yen or in respect
            of which amounts are payable in yen will only be issued in
            compliance with applicable Japanese laws, regulations, guidelines
            and policies. The Issuer or its designated agent shall submit such
            reports or information as may be required from time to time by
            applicable laws, regulations and guidelines promulgated by Japanese
            authorities in the case of the issue and purchase of such Notes;

      (c)   each issue of Notes denominated in Sterling will be made in
            accordance with all applicable laws and regulations including,
            without limitation, any applicable requirements from time to time of
            the Bank of England. The Issuer will, in relation to Notes
            denominated in Sterling, comply with all applicable laws,
            regulations and guidelines (as amended from time to time) of United
            Kingdom authorities, including without limitation Article 9 of the
            Financial Services and Markets Act 2000

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            (Regulated Activities) Order 2001 (Sums received in consideration
            for the issue of debt securities), which are relevant in the context
            of the issue of such Notes, and shall submit (or procure the
            submission on its behalf of) such reports or information as may from
            time to time be required for compliance with such laws, regulations
            and guidelines. The Issuer shall ensure that, where applicable, such
            Notes shall have the maturities and denominations which satisfy the
            requirements of such laws, regulations and guidelines from time to
            time. Issues of Notes having a maturity of less than one year from
            the date of issue will, if the proceeds of the issue are accepted in
            the United Kingdom, constitute deposits for the purposes of the
            prohibition on accepting deposits contained in Section 19 of the
            Financial Services and Markets Act 2000 (the "FSMA") unless they are
            issued to a limited class of professional investors and have a
            denomination of at least (pound)100,000 or its equivalent (see
            "Subscription and Sale and Transfer Restrictions" below); and

      (d)   the minimum denomination of each Bearer Note with a maturity of not
            more than 183 days from the date of issue will be U.S.$500,000 or
            its equivalent in other Specified Currencies at thedate of issue.

3.    CONDITIONS OF ISSUE, UPDATING OF LEGAL OPINIONS

(1)   First issue

      Before the Issuer reaches its first agreement with any Dealer for the
      issue and purchase of Notes, each Programme Dealer must have received all
      of the documents and confirmations described in the Initial Documentation
      List and found such documents to be satisfactory, in its reasonable
      opinion. If any Programme Dealer considers that, in its reasonable
      opinion, any document or confirmation described in the Initial
      Documentation List which it has received is unsatisfactory it must notify
      the Issuer of such fact within seven business days of receipt thereof,
      specifying the respect or respects of such document or confirmation which
      it considers to be unsatisfactory.

(2)   Each issue

      The obligations of a Dealer under any agreement for the issue and purchase
      of Notes made pursuant to clause 2 are conditional upon:

      (a)   there having been, as at the proposed Issue Date, no adverse change
            in the condition (financial or otherwise) of the Issuer, the
            Guarantor or the Group taken as a whole which, in any case, is
            material in the context of the issue and offering of the Notes from
            that set forth in the Offering Circular on the relevant Agreement
            Date, nor the occurrence of any event making untrue or incorrect to
            an extent which is material as aforesaid any of the representations
            and warranties contained in clause 4;

      (b)   there being no outstanding breach by the Issuer or the Guarantor of
            any of its obligations under this Agreement or the Notes which has
            not been expressly waived by the relevant Dealer on or prior to the
            proposed Issue Date;

      (c)   subject to clause 12, the aggregate nominal amount of the Notes to
            be issued, when added to the aggregate nominal amount of all Notes
            outstanding (as defined clause 1) on the proposed Issue Date
            (excluding for this purpose Notes due to be redeemed on such Issue
            Date) not exceeding U.S.$1,500,000,000 or its equivalent in other
            currencies, as determined pursuant to sub-clause (5);

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      (d)   in the case of Notes which are intended to be listed, the relevant
            Stock Exchange having agreed to list such Notes;

      (e)   no meeting of the holders of Notes (or any of them) to consider
            matters which might in the reasonable opinion of the relevant Dealer
            be considered to be material in the context of the issue of the
            Notes having been duly convened but not yet held or, if held but
            adjourned, the adjourned meeting having not been held, and neither
            the Issuer nor the Guarantor being aware of any circumstances which
            are likely to lead to the convening of such a meeting;

      (f)   there having been, between the Agreement Date and the Issue Date for
            such Notes, in the opinion of the relevant Dealer, no change in
            national or international financial, political or economic
            conditions or currency exchange rates or exchange controls which
            would, in the opinion of the relevant Dealer (after consultation, if
            practicable, with the Issuer), be likely to either: (i) prejudice
            materially the sale by such Dealer of the Notes proposed to be
            issued; or (ii) materially change the circumstances prevailing at
            the Agreement Date;

      (g)   the forms of Pricing Supplement, Temporary Bearer Global Note,
            Permanent Bearer Global Note, Reg. S Global Note, Restricted Global
            Note, Definitive Note, Receipt, Coupon, Talon (each as applicable)
            and the Conditions in relation to the relevant Tranche and the
            relevant settlement procedures having been agreed by the Issuer, the
            relevant Dealer and the Agent;

      (h)   in respect of the currency in which such Notes are to be
            denominated, such currency being accepted for settlement by
            Euroclear and Clearstream, Luxembourg; and

      (i)   any calculations or determinations which are required by the
            relevant Conditions to have been made prior to the Issue Date having
            been duly made.

      In the event that any of the foregoing conditions is not satisfied, the
      relevant Dealer shall be entitled (but not bound) by notice to the Issuer
      to be released and discharged from its obligations under the agreement
      reached under clause 2.

(3)   Waiver

      Any Dealer, on behalf of itself only, may by notice in writing to the
      Issuer and the Guarantor waive any of the conditions precedent contained
      in sub-clauses (1) and (2) (save for the condition precedent contained in
      sub-clause (2)(c)) in so far as they relate to an issue of Notes to that
      Dealer.

(4)   Updating of legal opinions

      Before the first issue of Notes occurring after each anniversary of the
      date of this Agreement and on such other occasions as a Dealer so requests
      (on the basis of reasonable grounds), the Issuer will procure that a
      further legal opinion or further legal opinions, as the case may be, in
      such form and with such content as the Programme Dealers or, as the case
      may be, the relevant Dealer may reasonably require is or are delivered, at
      the expense of the Issuer, to the Programme Dealers or, as the case may
      be, the relevant Dealer from legal advisers in the relevant jurisdictions
      approved by the Programme Dealers, or, as the case may be, the Programme
      Dealer. If at, or prior to, the time of any agreement to issue and
      purchase Notes under clause 2 such a request is made with respect to the
      Notes to be issued, the receipt of the relevant opinion or opinions in a
      form satisfactory to the relevant Dealer shall be a further condition
      precedent to the issue of those Notes.

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(5)   Determination of amounts outstanding

      For the purposes of sub-clause (2)(c):

      (a)   the U.S. dollar equivalent of Notes denominated in a currency other
            than U.S. dollars shall be determined, at the discretion of the
            Issuer, either as of the Agreement Date for such Notes or on the
            preceding day on which commercial banks and foreign exchange markets
            are open for business in London, in each case on the basis of the
            spot rate for the sale of the U.S. dollar against the purchase of
            the relevant currency in the London foreign exchange market quoted
            by any leading bank selected by the Issuer on the day of
            calculation;

      (b)   the U.S. dollar equivalent of Dual Currency Notes, Indexed Notes and
            Partly Paid Notes shall be calculated in the manner specified above
            by reference to the original nominal amount of such Notes (in the
            case of Partly Paid Notes regardless of the subscription price
            paid); and

      (c)   the U.S. dollar equivalent of Zero Coupon Notes and other Notes
            issued at a discount or a premium shall be calculated in the manner
            specified above by reference to the net proceeds received by the
            Issuer for the relevant issue.

4.    REPRESENTATIONS AND WARRANTIES

(1)   As at the date of this Agreement the Issuer and the Guarantor hereby
      jointly and severally represent and warrant to and agree with the Dealers
      (for the benefit of themselves and as agents for purchasers of Notes from
      them), the other parties hereto and each of them as follows:

      (a)   that the Offering Circular complies with the listing rules of the
            Luxembourg Stock Exchange and that it does not contain an untrue
            statement of a material fact with respect to the Issuer or omit to
            state a material fact with respect to the Issuer in order to make
            the statements made in the Offering Circular, in the light of the
            circumstances under which they were made, not misleading, that the
            opinions and intentions expressed therein with respect to the Issuer
            and the Notes issued by the Issuer are honestly held, that there are
            no other facts with respect to the Issuer or the Notes issued by the
            Issuer the omission of which would make the expression of any such
            opinions or intentions misleading in any material respect and that
            the Issuer has made all reasonable enquiries to ascertain all facts
            material for the purposes aforesaid;

      (b)   that the Issuer is duly incorporated as a limited liability company
            under the laws of the Cayman Islands;

      (c)   that the issue of Notes, the execution and delivery of this
            Agreement and the Deed of Covenant by the Issuer have been duly
            authorised by the Issuer and that the Notes will constitute, upon
            due execution, issue and delivery in accordance with this Agreement
            and that each of this Agreement and the Deed of Covenant constitute
            legal, valid and binding obligations of the Issuer enforceable in
            accordance with their respective terms subject to the laws of
            bankruptcy and other laws affecting the rights of creditors
            generally;

      (d)   that the execution and delivery of this Agreement and the Deed of
            Covenant, the issue, offering and distribution of Notes and the
            performance of the terms of such Notes, this Agreement and the Deed
            of Covenant will not infringe any law or

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            regulation and are not contrary to the provisions of the Memorandum
            and Articles of Association of the Issuer and will not result in any
            breach of the terms of, or constitute a default under, any
            instrument or agreement to which the Issuer is a party or by which
            the Issuer or its property is bound and which is material in the
            context of the Issuer taken as a whole;

      (e)   that no Event of Default in relation to the Issuer is subsisting in
            relation to any outstanding Note and no event has occurred which
            would constitute (after an issue of Notes) an Event of Default in
            relation to the Issuer thereunder;

      (f)   that, except as disclosed in the Offering Circular, the Issuer is
            not party to any litigation or arbitration proceedings that, in the
            reasonable judgement of management, is expected to have a material
            adverse effect on the financial condition, results of operations or
            business of the Issuer taken as a whole nor, so far as the Issuer is
            aware, is any such litigation or arbitration pending or threatened;

      (g)   that all consents, approvals, authorisations, orders and clearances
            of any court, government department or other regulatory authority
            required by the Issuer for or in connection with the creation and
            offering of Notes by it under this Agreement, the execution and
            issue of, and compliance by the Issuer with the terms of, Notes
            (including Global Notes), Receipts and Coupons issued by it under
            this Agreement and the execution and delivery of, and compliance
            with the terms of this Agreement and the Deed of Covenant have been
            obtained and are in full force and effect;

      (h)   that the Issuer, its affiliates and any person acting on its or
            their behalf (which, for the avoidance of doubt, shall exclude any
            Dealer) have complied with and will comply with the requirements of
            Regulation S under the Securities Act;

      (i)   that none of the Issuer or its affiliates nor any persons acting on
            its or their behalf (which, for the avoidance of doubt, shall
            exclude any Dealer) have engaged or will engage in the offer, sale,
            resale or other transfer of the Notes in the United States or to, or
            for the account or benefit of, U.S. persons except in transactions
            exempt from the registration requirements of the Securities Act in
            accordance with the selling restrictions set out in Schedule 5;

      (j)   that no general solicitation or general advertising within the
            meaning of Rule 502(c) under the Securities Act will be made by the
            Issuer, its affiliates and any person acting on its or their behalf
            (which, for the avoidance of doubt, shall exclude any Dealer) in the
            United States in connection with the offer, sale, resale or other
            transfer of the Notes in the United States;

      (k)   that the Issuer is not an "investment company" as defined in the
            U.S. Investment Company Act of 1940;

      (l)   that Notes offered, sold or resold by the Issuer in the United
            States pursuant to private transactions:

            (i)   to qualified institutional buyers within the meaning of Rule
                  144A under the Securities Act will meet the eligibility
                  requirements under such Rule 144A; or

            (ii)  are to institutional investors that are accredited investors
                  of the type described in Rule 501(a)(1), (2), (3) or (7) under
                  the Securities Act;

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      (m)   that Notes will not be of the same class within the meaning of Rule
            144A under the Securities Act as other securities of the Issuer that
            are listed on a national securities exchange registered under
            section 6 of the Securities Exchange Act of 1934, as amended (the
            "Exchange Act") or quoted in a U.S. automated interdealer quotation
            system of a registered national securities association; and

      (n)   that the Issuer has not offered or sold within the six months
            preceding any issuance of the Notes issued by it to an Institutional
            Accredited Investor, and will not offer or sell within six months
            following such issuance, any security of the same or a similar class
            as the Notes issued by it to such Institutional Accredited Investor
            other than pursuant to this Agreement.

(2)   As at the date of this Agreement the Guarantor hereby represents and
      warrants to and agrees with the Dealers (for the benefit of themselves and
      as agents for purchasers of Notes from them), the other parties hereto and
      each of them as follows:

      (a)   that the most recently available audited consolidated annual
            financial statements of the Group were prepared in accordance with
            accounting principles generally accepted in the United States of
            America applied on a consistent basis and in conformity with
            applicable requirements of the U.S. Securities and Exchange
            Commission and that they present fairly the consolidated financial
            position of the Group as at the date to which they were prepared
            (for the purposes of this clause 4(2), the "relevant date") and of
            the results of the operations of the Group for the period specified
            in the relevant profit and loss accounts contained therein and that
            there has been no material adverse change in the consolidated
            condition (financial or otherwise) of the Group since the relevant
            date, except as disclosed in the Offering Circular;

      (b)   that the Offering Circular complies with the requirements and the
            listing rules of the Luxembourg Stock Exchange and that it does not
            contain an untrue statement of a material fact with respect to the
            Group taken as a whole or omit to state a material fact with respect
            to the Group taken as a whole that is necessary to make the
            statements made in the Offering Circular not misleading, that the
            opinions and intentions expressed therein with respect to the
            Guarantor and the Notes issued by the Guarantor are honestly held,
            that there are no other facts with respect to the Guarantor or the
            Notes issued by the Guarantor the omission of which would make the
            expression of any such opinions or intentions misleading in any
            material respect and that the Guarantor has made all reasonable
            enquiries to ascertain all facts material for the purposes
            aforesaid;

      (c)   that the Guarantor is a company duly incorporated under the laws of
            the State of Delaware, United States of America;

      (d)   that the execution and delivery of this Agreement and the Guarantee
            by the Guarantor have been duly authorised by the Guarantor and that
            each of this Agreement and the Guarantee constitutes legal, valid
            and binding obligations of the Guarantor enforceable in accordance
            with their respective terms subject to the laws of bankruptcy and
            other laws affecting the rights of creditors generally;

      (e)   that the execution and delivery of this Agreement and the Guarantee
            and the performance of the terms of this Agreement and the Guarantee
            by the Guarantor will not infringe any law or regulation and are not
            contrary to the provisions of the Certificate of Incorporation and
            By-laws of the Guarantor and will not result in any breach of the
            terms of, or constitute a default under, any instrument or agreement
            to which any member of the Group is a party or by which any member
            of the Group or

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            its property is bound and which is material in the context of the
            Group taken as a whole;

      (f)   that no Event of Default in relation to the Guarantor is subsisting
            in relation to any outstanding Note and no event has occurred which
            would constitute (after an issue of Notes) an Event of Default in
            relation to the Guarantor thereunder;

      (g)   that, except as disclosed in the Offering Circular, no member of the
            Group is a party to any litigation or arbitration proceedings that,
            in the reasonable judgement of management, is expected to have a
            material adverse effect on the financial condition, results of
            operations or business of the Group taken as a whole nor, so far as
            the Guarantor is aware, is any such litigation or arbitration
            pending or threatened;

      (h)   that all consents, approvals, authorisations, orders and clearances
            of any court, government department or other regulatory authority
            required by the Guarantor for or in connection with the execution
            and delivery of, and compliance by the Guarantor with the terms of,
            this Agreement and the Guarantee have been obtained and are in full
            force and effect;

      (i)   that the Guarantor, its affiliates and any person acting on its or
            their behalf (which, for the avoidance of doubt, shall exclude any
            Dealer) have complied with and will comply with the requirements of
            Regulation S under the Securities Act;

      (j)   that none of the Guarantor or its affiliates nor any persons acting
            on its or their behalf (which, for the avoidance of doubt, shall
            exclude any Dealer) have engaged or will engage in the offer, sale,
            resale or other transfer of the Notes in the United States or to, or
            for the account or benefit of, U.S. persons except in transactions
            exempt from the registration requirements of the Securities Act in
            accordance with the selling restrictions set out in Schedule 5;

      (k)   that no general solicitation or general advertising within the
            meaning of Rule 502(c) under the Securities Act will be made by the
            Guarantor, its affiliates and any person acting on its or their
            behalf (which, for the avoidance of doubt, shall exclude any Dealer)
            in the United States in connection with the offer, sale, resale or
            other transfer of the Notes in the United States; and

      (l)   that the Guarantor is not an "investment company" as defined in the
            U.S. Investment Company Act of 1940.

(3)   With regard to each issue of Notes under this Agreement, each of the
      Issuer and the Guarantor shall be deemed, for the benefit of the relevant
      Dealer (for itself and as agent for each purchaser of the relevant Notes
      from it) to repeat the representations and warranties and agreements
      contained in sub-clause (1) and (2) above as at the Agreement Date for
      such Notes (any agreement on such Agreement Date being deemed to have been
      made on the basis of, and in reliance on, such representations, warranties
      and agreements) and as at the Issue Date of such Notes.

(4)   The representations, warranties and agreements contained in this clause 4
      shall continue in full force and effect notwithstanding any investigation
      by or on behalf of any Dealer or other party or completion of the issue
      and purchase of any Notes.

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5.    DEALERS' UNDERTAKINGS

      Each Dealer agrees to comply with the restrictions and agreements set out
      in Schedule 5 and, in the case of paragraph 4 thereof, the Issuer also so
      agrees.

6.    UNDERTAKINGS OF THE ISSUER AND THE GUARANTOR

(1)   Notification of material developments

      Each of the Issuer and the Guarantor shall promptly after becoming aware
      of the occurrence thereof notify each Programme Dealer and each Issue
      Dealer (in respect of any proposed issue of Notes, the Agreement Date for
      which has passed but which have not been issued) of:

      (a)   any Event of Default or any condition, event or act which, with the
            giving of notice and/or the lapse of time (after an issue of Notes)
            would constitute an Event of Default or any material breach of the
            representations and warranties or undertakings contained in this
            Agreement, any Notes or either of them; and

      (b)   any development affecting any member of the Group which is material
            in the context of this Agreement or any issue of Notes thereunder.

      If, following the Agreement Date and before the issue of the relevant
      Notes, the Issuer and/or the Guarantor becomes aware that the conditions
      specified in clause 3(2) will not be satisfied in relation to that issue,
      the Issuer and/or the Guarantor, as the case may be, shall forthwith
      notify the relevant Dealer to this effect giving full details thereof. In
      such circumstances, the relevant Dealer shall be entitled (but not bound)
      by notice to the Issuer to be released and discharged from its obligations
      under the agreement reached under clause 2.

(2)   Updating of Offering Circular

      On or before each anniversary of the date of this Agreement, the Issuer
      shall publish a new updated Offering Circular in a form approved by the
      Programme Dealers. In the event of a change in the condition of the Issuer
      or the Guarantor which is material in the context of the Agreement or the
      issue of Notes thereunder, the Issuer shall update or amend the Offering
      Circular (following consultation with the Programme Dealers) by the
      publication of a supplement thereto, in a form approved by the Programme
      Dealers. The Offering Circular shall, as specified therein, be deemed to
      incorporate by reference therein, with respect to the Guarantor, the
      publicly available audited consolidated financial statements of the
      Guarantor and its subsidiaries contained in the Guarantor's Annual Report
      on Form 10-K and the published quarterly reports of the Guarantor on Form
      10-Q for the most recent financial period and any reports of the Guarantor
      on Form 8-K which contain consolidated financial statements of the Group.
      Upon any new financial statements being incorporated in the Offering
      Circular as aforesaid or upon the publication of a revised Offering
      Circular or a supplement to the Offering Circular, the Issuer shall
      promptly supply to each Programme Dealer and the Agent such number of
      copies of such financial statements, revised Offering Circular or
      supplement as each Programme Dealer or the Agent (as the case may be) may
      reasonably request. Until a Programme Dealer receives such financial
      statements, revised Offering Circular or supplement, the definition of
      "Offering Circular" in clause 1(1) shall, in relation to such Programme
      Dealer, mean the Offering Circular prior to the receipt by such Programme
      Dealer of such financial statements or the publication of such revised
      Offering Circular or supplement.

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(3)   Listing

      Each of the Issuer and the Guarantor confirms that it: (a) has caused an
      application to be made on behalf of and at the expense of the Issuer for
      Notes under this Agreement to be listed on the Luxembourg Stock Exchange;
      (b) will make or cause to be made an application on behalf of and at the
      expense of the Issuer for Notes issued or to be issued under this
      Agreement to be listed on such other Stock Exchange as the Issuer may
      decide; and (c) will use best endeavours to obtain and maintain such
      listings. Upon agreement to issue Notes which are to be listed being
      reached under clause 2 above the Issuer will use its best endeavours to
      obtain and, whilst any such Notes are outstanding, maintain such listing.

      The Issuer and the Guarantor shall comply with any undertakings given by
      it from time to time to the relevant Stock Exchange in connection with any
      Notes listed on such Stock Exchange or the listing thereof and, without
      prejudice to the generality of the foregoing, shall furnish or procure to
      be furnished to the relevant Stock Exchange all such information as the
      relevant Stock Exchange may require from time to time in connection with
      the listing on such Stock Exchange of any Notes.

      If any Notes cease to be listed on a relevant Stock Exchange, the Issuer
      shall endeavour promptly to list such Notes on a stock exchange to be
      agreed between the Issuer and the relevant Dealer.

(4)   Lawful compliance

      (a)   Each of the Issuer and the Guarantor will at all times ensure that
            all necessary action is taken and all necessary conditions are
            fulfilled (including, without limitation, the obtaining of all
            necessary consents) so that it may lawfully comply with its
            obligations under the Notes and this Agreement and, further, so that
            it may comply with any applicable laws, regulations and guidance
            from time to time promulgated by any governmental and regulatory
            authorities relevant in the context of the issue of Notes under this
            Agreement.

      (b)   In connection with the offer, sale, resale or other transfer of the
            Notes made in the United States, the Issuer and the Guarantor will
            jointly and severally endeavour, in co-operation with any relevant
            Dealer, to qualify the Notes for the private placement of such
            equivalent exemptions as may be available for the offer, sale,
            resale or other transfer to institutional accredited investors and
            qualified institutional buyers under the applicable securities laws
            of such states and the District of Columbia as any relevant Dealer
            may designate, except where such qualification would require the
            Issuer to qualify to do business in such jurisdiction or consent to
            the service of process.

      (c)   So long as any of the Notes are "restricted securities" within the
            meaning of Rule 144(a)(3) under the Securities Act, the Guarantor
            will, if it ceases to be subject to or comply with the reporting
            requirements of Section 13 or 15(d) of the U.S. Securities Exchange
            Act of 1934, provide to any holder of such restricted securities, or
            to any prospective purchaser designated by a holder, upon the
            request of such holder or prospective purchaser, any information
            required to be provided by Rule 144A(d)(4) under the Securities Act.
            This covenant is intended to be for the benefit of the holders, and
            prospective purchasers designated by such holders, from time to time
            of such restricted securities. The Contracts (Rights of Third
            Parties) Act 1999 applies to this subclause 6(4)(c).

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(5)   Authorised representative

      Each of the Guarantor and the Issuer will notify the Programme Dealers
      immediately in writing if any of the persons named in the list referred to
      in paragraph 3 of the Initial Documentation List ceases to be authorised
      to take action on behalf of the Guarantor or the Issuer or if any
      additional person becomes so authorised together, in the case of an
      additional authorised person, with evidence satisfactory to the Programme
      Dealers that such person has been so authorised.

(6)   Auditors' comfort letters

      Each of the Issuer and the Guarantor will at its own expense at the time
      of the preparation of the initial Offering Circular and thereafter upon
      each occasion when the same may be amended or updated, whether by means of
      information incorporated by reference or otherwise, (insofar as such
      amendment or updating concerns or contains financial information about the
      Guarantor or the Group and/or the Issuer) and at other times whenever so
      requested by the Dealers or any of them (on the basis of reasonable
      grounds) deliver to the Programme Dealers, or as the case may be, the
      Dealers requesting the same, a comfort letter from independent auditors of
      the Guarantor in such form and with such content as the Programme Dealers,
      or as the case may be, the Dealers requesting the same may reasonably
      request provided that no such letter need be delivered in connection with
      the publication or issue of the audited consolidated financial statements
      of the Group. If at or prior to the time of any agreement to issue and
      purchase Notes under clause 2 such a request is made with respect to the
      Notes to be issued, the receipt of the relevant comfort letter in a form
      satisfactory to the relevant Dealer shall be a further condition precedent
      to the issue of those Notes.

(7)   No other issues

      During the period commencing on an Agreement Date in respect of any listed
      Notes and ending on the Issue Date with respect to those Notes, the Issuer
      will not, without the prior consent of the relevant Dealer, issue or agree
      to issue any other listed notes, bonds or other securities of whatsoever
      nature (other than Notes to be issued under this Agreement to the same
      Dealer) where such notes, bonds or other securities would have the same
      maturity and currency as the Notes to be issued on the relevant Issue
      Date.

(8)   Information on Noteholders' meetings

      Each of the Issuer and the Guarantor will, at the same time as it is
      despatched, furnish the Programme Dealers with a copy of every notice of a
      meeting of the holders of the Notes (or any of them) which is despatched
      at the instigation of either the Guarantor and/or the Issuer and will
      notify the Programme Dealers immediately it becomes aware that a meeting
      of the holders of the Notes (or any of them), has been convened by holders
      of Notes.

(9)   Rating

      The Guarantor undertakes promptly to notify the Programme Dealers (and
      each Issue Dealer in respect of a proposed issue of Notes the Agreement
      Date for which has passed but which have not been issued) of any change in
      the rating given by Moody's Investors Service Limited, Standard and Poor's
      Ratings Services, Fitch Ratings Ltd. or such other rating agency as
      notified to the Programme Dealers or the relevant Dealer for any of the
      Notes to be issued under this Agreement or upon it becoming aware that any
      such rating is listed on "Creditwatch" or has been announced to be under
      formal review by the relevant rating agency.

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7.    DEALERS' INDEMNITY

(1)   Without prejudice to the other rights or remedies of the Dealers, the
      Issuer and the Guarantor, jointly and severally, undertake with the
      Dealers and each of them (for the benefit of themselves and the purchasers
      of Notes from any Dealer, as agents for such purchasers) that it will
      indemnify such Dealer and each of its directors, officers, employers and
      agents and each person who controls such Dealer (within the meaning of
      Section 15 of the Securities Act) and each purchaser of Notes against any
      losses, liabilities, costs, claims, charges, expenses, actions or demands
      which that Indemnified Person or purchaser may incur or which may be made
      against it as a result of or in relation to:

      (a)   any failure by the Issuer to issue on the agreed Issue Date any
            Notes which a Dealer has agreed to purchase (unless such failure is
            as a result of the failure by the relevant Dealer to pay the agreed
            purchase price for such Notes); or

      (b)   any actual or alleged breach of the representations and warranties
            and undertakings contained in, or made or deemed to be made or
            repeated pursuant to, this Agreement; or

      (c)   any untrue or misleading (or allegedly untrue or misleading)
            statement, which is material (or allegedly material) in the context
            of this Agreement and the issue and offering of Notes thereunder in,
            or material omission (or alleged omission) from, the Offering
            Circular or any part thereof.

(2)   Each Dealer undertakes to indemnify each of the Issuer and the Guarantor
      and their respective directors, officers, employees and controlling
      persons against any losses, liabilities, costs, claims, actions, damages,
      demands or expenses which the Issuer or the Guarantor may incur or which
      may be made against the Issuer or the Guarantor arising out of or in
      relation to or in connection with any unauthorised action by that Dealer,
      failure by that Dealer to observe any of the above restrictions or
      requirements or the making by that Dealer of any unauthorised
      representation or the giving or use by that Dealer of any information
      which has not been authorised by the Issuer or any of the other Dealers
      provided that no Dealer shall be liable for any loss, liability, cost,
      claim, action, damage, expense or demand arising from the sale of Notes to
      any person believed in good faith by such Dealer, on reasonable grounds
      after due inquiry, to be a person to whom Notes could lawfully be offered
      or sold in compliance with this clause.

(3)   If any action, suit, proceeding (including any government or regulatory
      investigation), claim or demand ("Action") shall be brought or asserted
      against any Indemnified Person in respect of which indemnity may be sought
      pursuant to this clause, the Indemnified Person shall promptly notify the
      person against whom such indemnity may be sought (the "Indemnifying
      Person") in writing, and the Indemnifying Person, upon request of the
      Indemnified Person, shall retain legal advisers reasonably satisfactory to
      the Indemnified Person to represent the Indemnified Person and any others
      the Indemnifying Person may designate in such Action and shall pay the
      fees and expenses of such legal advisers related to such Action. In any
      such Action, any Indemnified Person shall have the right to retain its own
      legal advisers, but the fees and expenses of such legal advisers shall be
      the liability of such Indemnified Person unless any of the following
      circumstances occur in which case they shall be the liability of the
      Indemnifying Person: (i) the Indemnifying Person has failed within a
      reasonable time to retain legal advisers reasonably satisfactory to the
      Indemnified Person or (ii) the parties in any such Action include both the
      Indemnifying Person and the Indemnified Person and, in the reasonable
      judgment of the Indemnified Person based upon legal advice, representation
      of both parties by the same legal advisers would be inappropriate due to
      actual or potential

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      differing interests between them. The Indemnifying Person shall not, in
      connection with any Action or related Action in the same jurisdiction, be
      liable (except as mentioned above) for the fees and expenses of more than
      one separate firm of legal advisers (in addition to any local legal
      advisers) for all Indemnified Persons, and all such fees and expenses
      shall be reimbursed as they are incurred.

(4)   The Indemnifying Person shall not be liable for any settlement of any
      Action effected without its written consent, but if settled with such
      consent or if there be a final judgment for the plaintiff, the
      Indemnifying Person agrees to indemnify any Indemnified Person from and
      against any loss or liability by reason of such settlement or judgment.
      Notwithstanding the foregoing sentence, if at any time an Indemnified
      Person shall have requested an Indemnifying Person to reimburse the
      Indemnified Person for fees and expenses of legal advisers as contemplated
      by paragraph (a) above, the Indemnifying Person agrees that it shall be
      liable for any settlement of any Action effected without its written
      consent if (i) such settlement is entered into more than 30 days after
      receipt by such Indemnifying Person of such request and (ii) such
      Indemnifying Person shall not have reimbursed the Indemnified Person in
      accordance with such request prior to the date of such settlement. No
      Indemnifying Person shall without the prior written consent of the
      Indemnified Person, effect any settlement of any pending or threatened
      Action in respect of which any Indemnified Person is or could have been a
      party and indemnity could have been sought hereunder by such Indemnified
      Person, unless such settlement includes an unconditional release of such
      Indemnified Person from all liability in respect of the subject matter of
      such Action.

8.    AGENTS' INDEMNITY

(1)   The Issuer will indemnify (and if the Issuer fails to indemnify, the
      Guarantor agrees so to indemnify) the Agent, each of the Paying Agents and
      Transfer Agents, the Exchange Agent, the Registrar and any Settlement
      Agent against any losses, liabilities, costs, claims, actions, demands or
      expenses (including, but not limited to, all reasonable costs, legal fees,
      charges and expenses paid or incurred in disputing or defending any of the
      foregoing) which it may incur or which may be made against the Agent, any
      Paying Agent or Transfer Agent, the Exchange Agent, the Registrar or any
      Settlement Agent as a result of or in connection with its appointment or
      the exercise of its powers and duties hereunder except such as may result
      from its own default, negligence or bad faith or that of its officers,
      directors or employees or the breach by it of the terms of this Agreement.

(2)   Each of the Agent, the Paying Agents, the Transfer Agents, the Exchange
      Agent, the Registrar and any Settlement Agent will severally indemnify the
      Issuer and the Guarantor against any loss, liability, cost, claim, action,
      demand or expenses (including, but not limited to, all reasonable costs,
      legal fees, charges and expenses paid or incurred in disputing or
      defending any of the foregoing) which the Issuer or the Guarantor may
      incur or which may be made against the Issuer or the Guarantor as the
      direct reasonably foreseeable result of the breach by the Agent, the
      Paying Agents or Transfer Agents, the Exchange Agent, the Registrar or any
      Settlement Agent of the terms of this Agreement or its default, negligence
      or bad faith or that of its officers, directors or employees.

9.    FEES, EXPENSES AND STAMP DUTIES

(1)   The Issuer and the Guarantor jointly and severally undertake that they
      will:

      (a)   except in the case of an issue of Notes on a syndicated basis (the
            commissions for which will be agreed at the time of agreement for
            such issue) pay to each Dealer all

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            commissions from time to time agreed in connection with the sale of
            any Notes to that Dealer (and any value added or other tax thereon);
            and

      (b)   pay (together with any value added tax or other tax thereon):

            (i)   the fees and expenses of its legal advisers and auditors; and

            (ii)  the cost of listing and maintaining the listing of any Notes
                  issued pursuant to this Agreement which are to be listed on a
                  Stock Exchange.

(2)   The Issuer and the Guarantor also jointly and severally undertake that
      they will:

      (a)   pay (together with any value added tax or other tax thereon):

            (i)   the fees and expenses of the Registrar, the Agent, any Paying
                  Agents, the Transfer Agents and the Exchange Agent;

            (ii)  all expenses in connection with the issue, authentication,
                  packaging and initial delivery of Notes and the preparation of
                  bearer global Notes and registered global Notes, this
                  Agreement, the Guarantee, the Deed of Covenant and the
                  preparation and printing of any and all Notes, the Offering
                  Circular and any amendments or supplements thereto (including
                  the updating of any legal opinions issued pursuant to clause
                  3(4) and of any auditors' comfort letters issued pursuant to
                  clause 6(6)); and

            (iii) the cost of any publicity agreed by the Issuer in connection
                  with the issue of Notes;

      (b)   pay to BSIL the fees and disbursements of legal advisers appointed
            to represent the Programme Dealers (including any value added tax or
            other tax thereon) in connection with the negotiation, preparation,
            execution and delivery of this Agreement, the Guarantee, the Deed of
            Covenant and any documents referred to in any of them and any other
            documents required in connection with this Agreement or the issue of
            any Notes under this Agreement;

      (c)   pay promptly, and in any event before any penalty becomes payable,
            any stamp, documentary, registration or similar duty or tax
            (including any stamp duty reserve tax) payable in connection with
            the entry into, performance, enforcement or admissibility in
            evidence of this Agreement, any communication pursuant hereto, the
            Deed of Covenant, the Guarantee or any Note and indemnify each
            Dealer against any liability with respect to or resulting from any
            delay in paying or omission to pay any such duty or tax; and

      (d)   reimburse each Dealer for its costs and expenses reasonably and
            properly incurred in protecting or enforcing any of its rights under
            this Agreement.

10.   TERMINATION OF APPOINTMENT OF PROGRAMME DEALERS

      The Issuer or (as to itself) a Programme Dealer may terminate the
      arrangements described in this Agreement by giving not less than 30 days'
      written notice to the other parties hereto. The Issuer may terminate the
      appointment of a Programme Dealer by giving not less than 30 days' written
      notice to such Programme Dealer (with a copy promptly thereafter to all
      the other Programme Dealers and the Agent). Termination (including
      assignment or transfer in

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      accordance with clause 45(2)) shall not affect any rights or obligations
      (including but not limited to those arising under clauses 5, 7, and/or 9)
      which have accrued at the time of termination (including assignment or
      transfer in accordance with clause 45(2)) or which accrue thereafter in
      relation to any act or omission or alleged act or omission which occurred
      prior to such time.

11.   APPOINTMENT OF DEALERS

(1)   Nothing in this Agreement shall prevent the Issuer and the Guarantor from
      appointing one or more further Programme Dealers for the duration of the
      Programme or, with regard to an issue of a particular Tranche of Notes,
      the Issuer and the Guarantor appointing one or more Issue Dealers for the
      purposes of that Tranche, in either case upon the terms of this Agreement
      provided that, unless such appointment is effected pursuant to a
      Syndication Agreement:

      (a)   any such entity shall have first delivered to the Issuer and the
            Guarantor a Dealer Accession Letter substantially in the appropriate
            form set out in Part I or III of Schedule 13; and

      (b)   the Issuer and the Guarantor shall have delivered to such Dealer a
            Confirmation Letter substantially in the appropriate form set out in
            Part II or IV of Schedule 13,

      whereupon such entity shall, subject to the terms of the relevant Dealer
      Accession Letter and the relevant Confirmation Letter, become a party to
      this Agreement, vested with all authority, rights, powers, duties and
      obligations of a Programme Dealer or, as the case may be, an Issue Dealer
      as if originally named as a Programme Dealer or, as the case may be, an
      Issue Dealer hereunder.

(2)   The Issuer shall promptly notify the other parties to this Agreement of
      any appointment of a Programme Dealer by supplying to such parties a copy
      of the relevant Dealer Accession Letter and Confirmation Letter. No notice
      shall be required to be given in the case of an appointment of an Issue
      Dealer.

12.   INCREASE IN THE AGGREGATE NOMINAL AMOUNT OF THE NOTES TO BE ISSUED UNDER
      THE AGREEMENT

(1)   From time to time the Issuer and the Guarantor may wish to increase the
      aggregate nominal amount of the Notes that may be issued under this
      Agreement. In such circumstances, the Issuer and the Guarantor may give
      notification of such an increase (subject as set out in sub-clause (2)) by
      delivering to the Listing Agent and the Programme Dealers a letter in
      substantially the form set out in Schedule 12. Upon such notice being
      given to the Programme Dealers and the Listing Agent, all references in
      this Agreement or any other agreement or deed in relation to this
      Agreement and the Notes issued under this Agreement to the aggregate
      nominal amount of the Notes that may be issued under this Agreement, shall
      be and shall be deemed to be references to the increased aggregate nominal
      amount of the Notes that may be issued under this Agreement.

(2)   Notwithstanding sub-clause (1), the right of the Issuer and the Guarantor
      to increase the aggregate nominal amount of the Notes that may be issued
      under this Agreement shall be subject to each Programme Dealer having
      received and found satisfactory all the documents and confirmations
      described in the Initial Documentation List (with such changes as may be
      relevant, by reference to the circumstances at the time of the proposed
      increase as are agreed

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      between the Issuer, the Guarantor and the Programme Dealers) and the
      delivery of any further conditions precedent that any Programme Dealer may
      reasonably require, including, without limitation, the production of a
      supplementary Offering Circular and any further or other documents
      required by the relevant Stock Exchange(s) for the purpose of listing the
      Notes to be issued under the Programme on the relevant Stock Exchange(s).
      The Guarantor shall circulate to the Programme Dealers all the documents
      and confirmations described in the Initial Documentation List and any
      further conditions precedent so required. Any Programme Dealer must notify
      the Guarantor and the Issuer within seven business days of receipt if it
      considers, in its reasonable opinion, such documents, confirmations and,
      if applicable, such further conditions precedent to be unsatisfactory.

13.   CURRENCY INDEMNITY

      If, under any applicable law and whether pursuant to a judgment being made
      or registered against the Issuer or the Guarantor or in the liquidation,
      insolvency or analogous process of the Issuer or the Guarantor or for any
      other reason, any payment under or in connection with this Agreement is
      made or falls to be satisfied in a currency (the "other currency" other
      than that in which the relevant payment is expressed to be due (the
      "required currency") under this Agreement, then, to the extent that the
      payment (when converted into the required currency at the rate of exchange
      on the date of payment or, if it is not practicable for the relevant
      Dealer to purchase the required currency with the other currency on the
      date of payment, at the rate of exchange as soon thereafter as it is
      practicable for it to do so or, in the case of a liquidation, insolvency
      or analogous process, at the rate of exchange on the latest date permitted
      by applicable law for the determination of liabilities in such
      liquidation, insolvency or analogous process) actually received by the
      relevant Dealer falls short of the amount due under the terms of this
      Agreement, then each of the Issuer and the Guarantor, undertakes that it
      shall, as a separate and independent obligation, indemnify and hold
      harmless the relevant Dealer against the amount of such shortfall. For the
      purpose of this clause "rate of exchange" means the rate at which the
      relevant Dealer is able on the London foreign exchange market on the
      relevant date to purchase the required currency with the other currency
      and shall take into account any premium and other reasonable costs of
      exchange.

14.   STABILISATION

      In connection with the distribution of any Notes, the Dealer (if any)
      designated as stabilising manager in the applicable Pricing Supplement or
      any person acting for such Dealer may over-allot or effect transactions
      with a view to supporting the market price of such Notes (or Notes of the
      same Series) at a level higher than that which might otherwise prevail,
      for a limited period after the Issue Date. However, there may be no
      obligation on the stabilising manager or any agent of its to do this. Such
      stabilising, if commenced, may be discontinued at any time and must be
      brought to an end after a limited period.

15.   APPOINTMENT OF AGENT, OTHER PAYING AGENTS, REGISTRAR, TRANSFER AGENTS AND
      EXCHANGE AGENT

(1)   The Agent is hereby appointed, and the Agent hereby agrees to act, as
      agent of the Issuer and the Guarantor upon the terms and subject to the
      conditions set out below, for the purposes of, amongst other things:

      (a)   completing, authenticating and delivering Temporary Bearer Global
            Notes, Permanent Bearer Global Notes and (if required) completing,
            authenticating and

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            delivering Definitive Bearer Notes;

      (b)   exchanging Temporary Bearer Global Notes for Permanent Bearer Global
            Notes or Definitive Bearer Notes, as the case may be, in accordance
            with the terms of such Temporary Bearer Global Notes and as
            specified in the applicable Pricing Supplement and making all
            notations on such Temporary Bearer Global Notes required in
            accordance with their terms;

      (c)   exchanging Permanent Bearer Global Notes for Definitive Bearer Notes
            in accordance with the terms of such Permanent Bearer Global Notes
            and making all notations on such Permanent Bearer Global Notes
            required in accordance with their terms;

      (d)   paying sums due on Bearer Global Notes and Definitive Bearer Notes,
            Receipts and Coupons;

      (e)   exchanging Talons for Coupons in accordance with the Conditions;

      (f)   determining the end of the distribution compliance period (in the
            case of Bearer Notes) applicable to each Tranche in accordance with
            clause 17(3);

      (g)   unless otherwise specified in the applicable Pricing Supplement,
            determining the interest and/or other amounts payable in respect of
            the Notes in accordance with the Conditions;

      (h)   arranging on behalf of the Issuer and/or the Guarantor for notices
            to be communicated to the Noteholders in accordance with the
            Conditions;

      (i)   (to the extent required by applicable law or regulation for the time
            being) ensuring that, as directed by the Issuer, all necessary
            action is taken to comply with any reporting requirements of any
            competent authority of any relevant currency as may be in force from
            time to time with respect to the Notes to be issued under this
            Agreement;

      (j)   subject to the Procedures Memorandum, submitting to the relevant
            Stock Exchange such number of copies of each Pricing Supplement
            relating to Bearer Notes which are to be listed as the relevant
            Stock Exchange may reasonably require;

      (k)   unless the Agent has delegated this role (as authorised below) to a
            settlement agent (such person being the "Settlement Agent", in which
            case all references in this sub-clause (j) to the Agent shall,
            unless the context requires otherwise, be deemed to refer to the
            Settlement Agent) then in respect of each valid Transfer Notice (any
            determination as to whether a Transfer Notice has been properly and
            completely delivered as provided in the Conditions shall be made by
            (in the case of Bearer Notes) Euroclear or Clearstream, Luxembourg,
            or (in the case of Registered Notes) the Registrar, as the case may
            be, (in consultation with the Settlement Agent, if applicable) and
            shall be conclusive and binding on the Issuer, the Guarantor and the
            relevant Accountholder or Noteholder (as the case may be)), promptly
            upon receipt thereof providing a copy to the Issuer and:

            (i)   confirming with (in the case of Bearer Notes) Euroclear or
                  Clearstream, Luxembourg, or (in the case of Registered Notes)
                  the Registrar, as the case may be, the number of Notes to
                  which such Transfer Notice relates;

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            (ii)  promptly notifying the Issuer of details of the amount of any
                  Transfer Expenses in respect thereof;

            (iii) as instructed by the Issuer, or as may be specified in the
                  applicable Pricing Supplement, as attorney or agent on behalf
                  of the Issuer, executing the instrument(s) of transfer (if
                  any) of the relevant number of Underlying Securities held by
                  the Issuer (or its nominee) in accordance with the
                  instructions contained in the relevant Transfer Notice and
                  procuring that the relevant Securities Amounts are delivered
                  in the manner specified in the Conditions and in the
                  applicable Pricing Supplement, provided that if on the
                  Maturity Date or the Early Redemption Date (as the case may
                  be) or on any date thereafter prior to the delivery, in
                  accordance with the Conditions, of the relevant Underlying
                  Securities any Settlement Disruption Event is subsisting,
                  delivery of the relevant Underlying Securities shall be
                  postponed until the date on which no Settlement Disruption
                  Event is subsisting, subject to Condition 6(a)(v); and

      (l)   performing all other obligations and duties imposed upon it by the
            Conditions and this Agreement.

      The Agent may from time to time, subject to the prior written consent of
      the Issuer and the Guarantor, delegate certain of its functions and duties
      set out in this Agreement, insofar as may relate to (i) Registered Notes,
      to the Registrar, and (ii) Linked Notes, to a Settlement Agent.

(2)   Each Paying Agent is hereby appointed, and each Paying Agent hereby agrees
      to act, as paying agent of the Issuer and the Guarantor, upon the terms
      and subject to the conditions set out below, for the purposes of paying
      sums due on Notes, Receipts and Coupons and performing all other
      obligations and duties imposed upon it by the Conditions and this
      Agreement, including keeping a stock of Transfer Notices (in the form set
      out in Schedule 7 hereto) to be made available upon request by holders of
      Linked Notes.

(3)   Each Transfer Agent is hereby appointed, and each Transfer Agent hereby
      agrees to act, as transfer agent of the Issuer and the Guarantor, upon the
      terms and subject to the conditions set out below.

(4)   The Exchange Agent is hereby appointed, and the Exchange Agent hereby
      agrees to act, as exchange agent of the Issuer and the Guarantor, upon and
      subject to the terms and conditions set out below.

(5)   Any Settlement Agent appointed hereunder shall agree to act as settlement
      agent of the Issuer and the Guarantor, upon the terms and conditions set
      out herein.

(6)   The Registrar is hereby appointed, and the Registrar hereby agrees to act,
      as registrar and transfer agent of the Issuer and the Guarantor, upon the
      terms and subject to the conditions set out below, for the purposes of,
      amongst other things:

      (a)   completing, authenticating and delivering Reg. S Global Notes,
            Restricted Global Notes and authenticating and delivering Definitive
            Registered Notes;

      (b)   paying sums due on Registered Global Notes and Registered Definitive
            Notes;

      (c)   determining the end of the Distribution Compliance Period (in the
            case of Registered Notes) applicable to each Tranche in accordance
            with clause 17(3);

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      (d)   subject to the Procedures Memorandum, submitting to the relevant
            Stock Exchange such number of copies of each Pricing Supplement
            relating to Registered Notes which are to be listed as the relevant
            Stock Exchange may require; and

      (e)   performing all other obligations and duties imposed upon it by the
            Conditions and this Agreement, including, without limitation, those
            set out in clause 24.

      The Registrar may from time to time, subject to the prior written consent
      of the Issuer and the Guarantor, delegate certain of its functions and
      duties set out in this Agreement to the Agent.

16.   ISSUE OF BEARER GLOBAL NOTES AND REGISTERED GLOBAL NOTES

(1)   Subject to sub-clause (2) below, upon being instructed to do so, in the
      case of an issue of Notes on a non-syndicated basis, by receipt of a
      confirmation (a "Confirmation") from the Issuer substantially in the form
      of Annex C to the Procedures Memorandum or, in the case of an issue of
      Notes on a syndicated basis, upon receipt of an executed Syndication
      Agreement, the Agent and the Registrar will each take the steps required
      of them in the Procedures Memorandum. For this purpose, each of the Agent
      and the Registrar is hereby authorised on behalf of the Issuer and the
      Guarantor:

      (a)   to prepare a Temporary Bearer Global Note (in the case of the Agent)
            and/or Reg. S Global Note and/or Restricted Global Note (in the case
            of the Registrar) by attaching a copy of the applicable Pricing
            Supplement and a copy of the Terms and Conditions of the Notes to an
            executed master Temporary Bearer Global Note, Reg. S Global Note or
            Restricted Global Note, as the case may be;

      (b)   to authenticate such Temporary Bearer Global Note (in the case of
            the Agent) or Reg. S Global Note or Restricted Global Note (in the
            case of the Registrar) in accordance with the provisions of this
            Agreement;

      (c)   in the case of the Agent, to deliver, in the case of a Temporary
            Bearer Global Note only, such Temporary Bearer Global Note to a
            common depositary of Euroclear and/or Clearstream, Luxembourg
            against receipt from the common depositary of confirmation that such
            common depositary is holding the Temporary Bearer Global Note in
            safe custody for the account of Euroclear and/or Clearstream,
            Luxembourg and to instruct Euroclear or Clearstream, Luxembourg or
            both of them (as the case may be) unless otherwise agreed in writing
            between the Agent and the Issuer: (i) in the case of an issue of
            Notes on a non-syndicated basis, to credit the Notes represented by
            such Temporary Bearer Global Note to the Agent's distribution
            account; and (ii) in the case of Notes issued on a syndicated basis,
            to hold the Notes represented by such Temporary Bearer Global Note
            to the Issuer's order;

      (d)   in the case of the Registrar, to deliver, in the case of a
            Registered Global Note, such Registered Global Note to a custodian
            for DTC against receipt from DTC of confirmation that: (i) in the
            case of an issue of Registered Notes on a non-syndicated basis, that
            Registered Notes represented by such Registered Global Note have
            been credited to the relevant Dealer's participant account (or the
            participant account of the DTC participant through which the
            relevant Dealer is acting); and (ii) in the case of an issue of
            Registered Notes on a syndicated basis, that Registered Notes
            represented by such Registered Global Note are held to the Issuer's
            order; and

      (e)   to ensure that the Notes of each Tranche are assigned, as
            applicable, a CUSIP

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            number, CINS number, common code and ISIN which are different from
            the CUSIP number, CINS number, common code and ISIN assigned to
            Notes of any other Tranche of the same Series until at least expiry
            of the applicable Distribution Compliance Period (as defined below).

(2)   Each of the Agent and the Registrar shall only be required to perform its
      obligations under sub-clause (1) above, in circumstances in which the
      relevant master global Notes are required for the performance of its
      obligations, if it holds (as applicable):

      (a)   a master Temporary Bearer Global Note duly executed manually or by
            facsimile by a person or persons authorised to execute the same on
            behalf of the Issuer, which may be used by the Agent for the purpose
            of preparing a Temporary Bearer Global Note in accordance with
            paragraph (a) of sub-clause (1);

      (b)   a master Permanent Bearer Global Note duly executed manually or by
            facsimile by a person or persons duly authorised to execute the same
            on behalf of the Issuer, which may be used by the Agent for the
            purpose of preparing a Permanent Bearer Global Note in accordance
            with clause 17;

      (c)   a master Reg. S Global Note duly executed manually or by facsimile
            by a person or persons duly authorised to execute the same on behalf
            of the Issuer, which may be used by the Agent for the purpose of
            preparing Reg. S Global Notes in accordance with paragraph (a) of
            sub-clause (1); and

      (d)   a master Restricted Global Note duly executed manually or by
            facsimile by a person or persons duly authorised to execute the same
            on behalf of the Issuer, which may be used by the Agent for the
            purpose of preparing Restricted Global Notes in accordance with
            paragraph (a) of sub-clause (1).

17.   DETERMINATION OF EXCHANGE DATE, ISSUE OF PERMANENT BEARER GLOBAL NOTES,
      ISSUE OF DEFINITIVE BEARER GLOBAL NOTES, DETERMINATION OF DISTRIBUTION
      COMPLIANCE PERIOD AND ELIMINATION OF CHILL ORDER

(1)   The Agent shall determine the Exchange Date for each Temporary Bearer
      Global Note in accordance with the terms thereof. Forthwith upon
      determining the Exchange Date in respect of any Tranche, the Agent shall
      notify such determination to the Issuer, the relevant Dealer, Euroclear
      and Clearstream, Luxembourg.

(2)   The Agent shall deliver a Permanent Bearer Global Note or Definitive
      Bearer Notes, as the case may be, in accordance with the terms of the
      Temporary Bearer Global Note and as specified in the applicable Pricing
      Supplement. Where a Temporary Bearer Global Note is to be exchanged for a
      Permanent Bearer Global Note, the Agent is hereby authorised to, and it
      shall, on behalf of the Issuer:

      (a)   in the case of the first Tranche of any Series of Bearer Notes,
            prepare and complete a Permanent Bearer Global Note in accordance
            with the terms of the Temporary Bearer Global Note applicable to
            such Tranche by attaching a copy of the applicable Pricing
            Supplement and a copy of the Terms and Conditions of the Notes to an
            executed master Permanent Bearer Global Note;

      (b)   in the case of the first Tranche of any Series of Bearer Notes,
            authenticate such Permanent Bearer Global Note in accordance with
            the provisions of this Agreement;

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      (c)   in the case of the first Tranche of any Series of Bearer Notes,
            deliver such Permanent Bearer Global Note to the common depositary
            which is holding the Temporary Bearer Global Note applicable to such
            Tranche for the time being on behalf of Euroclear and/or
            Clearstream, Luxembourg either in exchange for such Temporary Bearer
            Global Note or, in the case of a partial exchange, on entering
            details of such partial exchange of the Temporary Bearer Global Note
            in the relevant spaces in Schedule 2 of both the Temporary Bearer
            Global Note and the Permanent Bearer Global Note; and

      (d)   in any other case, attach a copy of the applicable Pricing
            Supplement and the Terms and Conditions of the Notes to the
            Permanent Bearer Global Note applicable to the relevant Series and
            enter details of any exchange in whole or part as aforesaid.

(3)   (a)   In the case of a Tranche of Notes in respect of which there is only
            one Dealer, the Agent will determine the end of the distribution
            compliance period in respect of such Tranche (the "Distribution
            Compliance Period") as being the 40th day following the date
            certified by the relevant Dealer to the Agent as being the date as
            of which distribution of the Notes of that Tranche was completed.

      (b)   In the case of a Tranche of Notes in respect of which there is more
            than one Dealer but which has not been issued on a syndicated basis,
            the Agent will determine the end of the Distribution Compliance
            Period in respect of such Tranche as being the 40th day following
            the latest of the dates certified by all the relevant Dealers to the
            Agent as being the respective dates as of which distribution of the
            Notes of that Tranche purchased by each such Dealer was completed.

      (c)   In the case of a Tranche of Notes issued on a syndicated basis, the
            Agent will determine the end of the Distribution Compliance Period
            in respect of such Tranche as being the 40th day following the date
            certified by the Lead Manager to the Agent as being the date on
            which distribution of the Notes of that Tranche was completed.

      (d)   Forthwith upon determining the end of the Distribution Compliance
            Period in respect of any Tranche of Notes, the Agent shall notify
            such determination to the Issuer, the Guarantor, Euroclear and
            Clearstream, Luxembourg and the relevant Dealer (in the case of a
            non-syndicated issue) or the Lead Manager (in the case of a
            syndicated issue).

(4)   The Agent shall request DTC to eliminate any "Deliver Order Chill"
      applicable to a Reg. S Global Note, such request to be effective after
      expiry of the Distribution Compliance Period applicable to the Tranche of
      Notes in question.

18.   ISSUE OF DEFINITIVE NOTES

(1)   In accordance with the terms of the relevant Pricing Supplement and
      pursuant to the terms of the relevant Bearer Global Note (in the case of
      Bearer Notes only) or upon the Issuer becoming obliged pursuant to
      Condition 12 (in the case of Registered Notes only) to issue Definitive
      Notes, the Agent (in the case of Bearer Notes) and the Registrar (in the
      case of Registered Notes) are each hereby authorised to:

      (a)   authenticate such Definitive Note(s) in accordance with the
            provisions of this Agreement; and

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      (b)   deliver such Definitive Note(s), in the case of Definitive Bearer
            Notes to or to the order of Euroclear and/or Clearstream, Luxembourg
            or, in the case of Definitive Registered Notes, as the Registrar may
            be directed by the holder of such Definitive Registered Note(s).

      The Agent shall notify the Issuer forthwith upon receipt of a request for
      issue of Definitive Bearer Notes in accordance with the provisions of a
      Permanent Bearer Global Note (and the aggregate nominal amount of such
      Permanent Bearer Global Note to be exchanged in connection therewith). The
      Registrar shall notify the Issuer forthwith upon receipt of a request for
      the issue of Definitive Registered Notes (including upon the exchange of
      Reg. S Notes for Legended Notes or vice versa) and the aggregate nominal
      amount of the relevant Registered Global Note or, as the case may be,
      Definitive Registered Notes, to be exchanged in connection therewith.

(2)   The Issuer (failing which, the Guarantor) undertakes to deliver to the
      Agent or the Registrar, as the case may be, sufficient numbers of executed
      Definitive Notes with, in the case of Definitive Bearer Notes (if
      applicable), Receipts, Coupons and Talons attached, to enable the Agent or
      the Registrar, as the case may be, to comply with its obligations under
      this clause.

19.   TERMS OF ISSUE

(1)   The Issuer undertakes to ensure that at all times a sufficient quantity of
      master Temporary Bearer Global Notes and master Permanent Bearer Global
      Notes is held by the Agent and a sufficient quantity of Registered Global
      Notes is held by the Registrar, all duly executed as aforesaid. The Issuer
      (failing which, the Guarantor) further undertakes to deliver to the Agent,
      or the Registrar, as the case may be, upon reasonable notice sufficient
      numbers of executed Definitive Notes (together with, in the case of
      Definitive Bearer Notes (if applicable), Receipts, Coupons and Talons
      attached) which are required by the Agent or the Registrar, as the case
      may be, pursuant to a request for the issue of Definitive Bearer Notes
      under the terms of a Permanent Bearer Global Note or in accordance with
      the terms of the applicable Pricing Supplement and under the terms of a
      Temporary Bearer Global Note or, as the case may be, pursuant to the
      Issuer's obligation to issue Definitive Registered Notes in accordance
      with Condition 12 and that it will, on demand, supply to the Agent or the
      Registrar, as the case may be, such further duly executed Definitive Notes
      as the Agent or the Registrar, as the case may be, may from time to time
      require for the performance of their duties hereunder.

(2)   Each of the Agent and the Registrar shall cause all Notes delivered to and
      held by it or them hereunder to be maintained in safe custody and shall
      ensure that such Notes are issued only under the Conditions and in
      accordance with the provisions of this Agreement.

(3)   Subject to the procedures set out in the Procedures Memorandum, for the
      purposes of clause 16 each of the Agent and the Registrar, as the case may
      be, is entitled to treat a telephone, telex or facsimile communication
      from a person purporting to be and who the Agent or the Registrar, as the
      case may be, believes in good faith to be, the authorised representative
      of the Issuer named in the list referred to in, or notified pursuant to,
      clause 16(7) , or any other list duly provided for such purpose by the
      Issuer to the Agent or the Registrar, as the case may be, as sufficient
      instruction and authority of the Issuer for the Agent or the Registrar to
      act in accordance with clause 16 .

(4)   In the event that a person who has signed, on behalf of the Issuer, a
      master Temporary Bearer Global Note, master Permanent Bearer Global Note,
      master Registered Global Note or Definitive Note held by the Agent or the
      Registrar, as the case may be, in accordance with

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      sub-clause (2) above ceases to be authorised as described in clause 36(7),
      the Agent and the Registrar, shall (unless the Issuer gives notice to the
      Agent or the Registrar, as the case may be, that Notes signed by that
      person do not constitute valid and binding obligations of the Issuer or
      otherwise until replacements have been provided to the Agent or the
      Registrar, as the case may be) continue to have authority to issue Notes
      signed by that person, and the Issuer hereby warrants to the Agent and the
      Registrar that such Notes shall be valid and binding obligations of the
      Issuer. Promptly upon such person ceasing to be authorised, the Issuer
      shall provide the Agent with replacement master Temporary Bearer Global
      Notes, replacement master Permanent Global Bearer Notes and replacement
      Definitive Bearer Notes and shall provide the Registrar with replacement
      master Registered Global Notes and replacement Definitive Registered Notes
      and the Agent and the Registrar, as the case may be, shall, upon receipt
      of such replacements, cancel and destroy the master Temporary Permanent
      Global Note(s), master Permanent Bearer Global Note(s), master Registered
      Global Note(s) and unissued Definitive Notes, as applicable, held by them
      which are signed by such person and shall provide the Issuer with a
      certificate of destruction in respect thereof, specifying the Notes so
      cancelled and destroyed.

(5)   The Agent will provide Euroclear and/or Clearstream, Luxembourg with the
      notifications, instructions or information to be given by the Agent to
      Euroclear and/or Clearstream, Luxembourg.

(6)   If the Agent or the Registrar, as the case may be, pays an amount (the
      "Advance") to the Issuer on the basis that a payment (the "Payment") has
      been or will be received from a Dealer and if the Payment is not received
      by the Agent or the Registrar on the date the Agent or the Registrar, as
      the case may be, pays the Issuer, the Issuer (failing which, the
      Guarantor) shall repay to the Agent or the Registrar, as the case may be,
      the Advance and shall pay interest on the Advance (or the unreimbursed
      portion thereof) from (and including) the date such Advance is made to
      (but excluding) the earlier of repayment of the Advance or receipt by the
      Agent or the Registrar of the Payment (at a rate quoted at that time by
      the Agent or the Registrar as its cost of funding the Advance provided
      that evidence of the basis of such rate is given to the Issuer and the
      Guarantor). For the avoidance of doubt, neither the Agent nor the
      Registrar shall be obliged to pay any amount to the Issuer if it has not
      received satisfactory confirmation that it is to receive such amount from
      a Dealer.

(7)   Except in the case of issues where the Agent or the Registrar, as the case
      may be, does not act as receiving bank for the Issuer in respect of the
      purchase price of the Notes being issued, if on the relevant Issue Date a
      Dealer does not pay the full purchase price due from it in respect of any
      Note (the "Defaulted Note") and, as a result, the Defaulted Note remains
      in the Agent's distribution account with Euroclear and/or Clearstream,
      Luxembourg and/or the Registrar's participant account with DTC after such
      Issue Date, the Agent or the Registrar, as the case may be, will continue
      to hold the Defaulted Note to the order of the Issuer. The Agent or the
      Registrar, as the case may be, shall notify the Issuer forthwith of the
      failure of the Dealer to pay the full purchase price due from it in
      respect of any Defaulted Note and, subsequently, shall notify the Issuer
      forthwith upon receipt from the Dealer of the full purchase price in
      respect of such Defaulted Note.

20.   EXCHANGE AND TRANSFER OF NOTES

(1)   Upon any exchange of all or a portion of an interest in a Temporary Bearer
      Global Note for an interest in a Permanent Bearer Global Note or upon any
      exchange of all or a portion of an interest in a Temporary Bearer Global
      Note or a Permanent Bearer Global Note for Definitive Bearer Notes or
      Definitive Registered Notes, the relevant Global Note shall be endorsed by
      the Agent to reflect the reduction of its nominal amount by the aggregate
      nominal amount so

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      exchanged and the Permanent Bearer Global Note shall be endorsed by the
      Agent or on its behalf to reflect the increase in its nominal amount as a
      result of such exchange. Until exchanged in full, the holder of an
      interest in any Bearer Global Note shall in all respects be entitled to
      the same benefits under this Agreement as the holder of Definitive Bearer
      Notes, Receipts and Coupons authenticated and delivered hereunder, subject
      as set out in the Conditions. The Agent is hereby authorised on behalf of
      the Issuer: (a) to endorse or to arrange for the endorsement of the
      relevant Bearer Global Note to reflect the reduction in the nominal amount
      represented thereby by the amount so exchanged and, if appropriate, to
      endorse the Permanent Bearer Global Note to reflect any increase in the
      nominal amount represented thereby, and in either case, to sign in the
      relevant space on the relevant Bearer Global Note recording such exchange
      and reduction or increase; and (b) in the case of a total exchange, to
      cancel or arrange for the cancellation of the relevant Bearer Global Note.

(2)   Upon any exchange of all or a portion of an interest in a Restricted
      Global Note for an interest in a Reg. S Global Note or vice versa or upon
      exchange of an interest in a Registered Global Note for Definitive
      Registered Notes or vice versa or upon any exchange of Definitive Bearer
      Notes for an interest in Registered Global Notes or Registered Definitive
      Notes, the relevant Registered Global Note(s) shall be surrendered to the
      Registrar by or to the order of DTC or its nominee and endorsed to reflect
      the reduction or increase (as the case may be) in its/their nominal amount
      by the Registrar or on its behalf. The Registrar is hereby authorised on
      behalf of the Issuer: (a) to endorse or to arrange for the endorsement of
      the relevant Registered Global Note(s) to reflect the reduction or
      increase (as the case may be) in the nominal amount represented thereby,
      and in either case to sign in the relevant space on the relevant
      Registered Global Note recording such exchange and reduction or increase;
      and (b) in the case of total exchange, to cancel or arrange for the
      cancellation of the relevant Registered Global Note.

21.   PAYMENTS AND DELIVERIES

(1)   (a)   The Issuer (failing which, the Guarantor) will, before 10.00 a.m.
            (local time in the relevant financial centre of the payment), on
            each date on which any payment in respect of any of the Notes
            becomes due, transfer to an account specified by the Agent, in the
            case of Bearer Notes, or the Registrar, in the case of Registered
            Notes, such amount in the relevant currency as shall be sufficient
            for the purposes of such payment in funds settled through such
            payment system as the Issuer and the Agent or the Registrar, as the
            case may be, may agree.

      (b)   In the case of Linked Notes where the amount due is deliverable to
            the Noteholder, the Issuer (failing which, the Guarantor) will,
            before 10.00 a.m. (local time in the relevant financial centre of
            delivery), on each date on which any delivery in respect of any of
            the Notes is due, transfer to an account specified by the Agent (or
            the Settlement Agent, as the case may be), in the case of Bearer
            Notes, or the Registrar (or the Settlement Agent, as the case may
            be), in the case of Registered Notes, the relevant number of
            Underlying Securities required for the purposes of that delivery as
            the Issuer and the Agent (or the Settlement Agent) or Registrar (or
            the Settlement Agent), as the case may be, may agree.

(2)   The Issuer (failing which, the Guarantor) will ensure that no later than
      10.00 a.m. (London time) on the second Business Day (as defined below)
      immediately preceding the date on which any payment is to be made to the
      Agent or the Registrar, as the case may be, pursuant to sub-clause (1)
      above, the Agent or the Registrar, as the case may be, shall receive from
      the paying bank of the Issuer a payment confirmation in the form of a
      SWIFT message or tested telex. For the purposes of this clause "Business
      Day" means a day which is both:

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      (a)   a day on which commercial banks and foreign exchange markets settle
            payments and are open for general business (including dealings in
            foreign exchange and foreign currency deposits) in London; and

      (b)   either: (i) in relation to a payment to be made in a Specified
            Currency other than euro, a day on which commercial banks and
            foreign exchange markets settle payments and are open for general
            business (including dealings in foreign exchange and foreign
            currency deposits) in the principal financial centre of the country
            of the relevant Specified Currency (if other than London and which,
            if the Specified Currency is Australian dollars or New Zealand
            dollars, shall be Sydney and Auckland respectively) or (ii) in
            relation to a payment to be made in euro, a day on which the TARGET
            System is open.

(3)   The Agent shall ensure that payments of both principal and interest in
      respect of Temporary Bearer Global Notes will be made only to the extent
      that certification of non-U.S. beneficial ownership as required by U.S.
      securities laws and U.S. Treasury regulations (in the form set out in the
      Temporary Bearer Global Notes) has been received from Euroclear and/or
      Clearstream, Luxembourg in accordance with the terms thereof.

(4)   Subject to the receipt by the Agent or the Registrar, as the case may be,
      of the payment confirmation as provided in sub-clause (2) above, the
      Agent, the Registrar or the relevant Paying Agent, as the case may be,
      shall pay or deliver or cause to be paid or delivered all amounts due in
      respect of the Notes on behalf of the Issuer and the Guarantor in the
      manner provided in the Conditions. If any payment or delivery provided for
      in sub-clause (1) is made late but otherwise in accordance with the
      provisions of this Agreement, the Agent, the Registrar and each Paying
      Agent shall nevertheless make payments in respect of the Notes as
      aforesaid following receipt by it of such payment.

(5)   If for any reason the Agent or the Registrar, as the case may be,
      considers in its sole discretion that the amounts to be received by the
      Agent or the Registrar, as the case may be, pursuant to sub-clause (1)
      will be, or the amounts actually received by it pursuant thereto are,
      insufficient to satisfy all claims in respect of all payments then falling
      due in respect of the Notes, none of the Agent, the Registrar or the
      Paying Agents shall be obliged to pay any such claims until the Agent or
      the Registrar, as the case may be, has received the full amount of all
      such payments.

(6)   Without prejudice to sub-clauses (9) and (10), and other than in respect
      of payments and/or delivery of amounts due under sub-clause (1)(b) above,
      if the Agent or the Registrar pays and/or delivers any amounts to the
      holders of Notes, Receipts or Coupons or to any Paying Agent at a time
      when it has not received payment in full in respect of the relevant Notes
      in accordance with sub-clause (1) (the excess of the amounts so paid over
      the amounts so received being the "Shortfall"), the Issuer (failing which,
      the Guarantor) will, in addition to paying amounts due under sub-clause
      (1), pay to the Agent or the Registrar, as the case may be, on demand,
      interest (at a rate which represents the Agent's or the Registrar's cost
      of funding the Shortfall) on the Shortfall (or the unreimbursed portion
      thereof) until the receipt in full by the Agent or the Registrar, as the
      case may be, of the Shortfall.

(7)   The Agent shall on demand promptly reimburse each Paying Agent for
      payments in respect of Notes properly made by such Paying Agent in
      accordance with this Agreement and the Conditions unless the Agent has
      notified the Paying Agent, prior to the opening of business in the
      location of the office of the Paying Agent through which payment in
      respect of the Notes can be made on the due date of a payment in respect
      of the Notes, that it does not expect to receive sufficient funds to make
      payment of all amounts falling due in respect of such Notes.

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(8)   Whilst any Notes are represented by Global Notes, all payments due in
      respect of such Notes shall be made to, or to the order of, the holder of
      the Global Notes, subject to and in accordance with the provisions of the
      Global Notes. On the occasion of any such payment the Agent or the
      Registrar to which the Global Note was presented for the purpose of making
      such payment shall cause the appropriate Schedule to the relevant Global
      Note to be annotated so as to evidence the amounts and dates of such
      payments of principal and/or interest as applicable.

(9)   The Registrar shall pay to the Exchange Agent, and the Exchange Agent
      shall receive, all payments made under any Registered Global Note
      registered in the name of DTC or its nominee (a "DTC Note") which is
      denominated in a specified currency other than U.S. dollars.

      The Exchange Agent shall be advised in writing, on or before the relevant
      Record Date, by DTC or its nominee:

      (a)   if any beneficial holder (a "Beneficial Holder") of the DTC Note in
            respect of which payment is due has elected to receive such payment
            in U.S. dollars and, if so, the amount of such payment (expressed in
            the Specified Currency in which the relevant DTC Note is
            denominated) which such Beneficial Holder wishes to receive in U.S.
            dollars; and

      (b)   of the payment details for each such Beneficial Holder.

      The Exchange Agent shall enter into a contract on behalf of the Issuer at
      or prior to 11:00 a.m. (New York City time) on the second New York
      Business Day (as defined below) preceding the applicable payment date and
      will solicit bid quotations from three recognised foreign exchange dealers
      (which may include the Exchange Agent) for the purchase of U.S. dollars
      with an amount of the relevant Specified Currency equal to the aggregate
      amount which DTC has notified the Exchange Agent that Beneficial Holders
      wish to receive in U.S. dollars. In the event that no such notification is
      received from DTC prior to the Record Date, the Exchange Agent shall enter
      into a contract for the purchase of U.S. dollars, as aforesaid, in respect
      of the full amount of the payment due in respect of the relevant DTC Note.
      The settlement date for each such purchase shall be the applicable payment
      date and the Exchange Agent shall enter into a contract for such purchase
      on the basis of the most favourable bid submitted. The Exchange Agent
      shall, on the relevant payment day:

            (i)   pay all amounts converted into U.S. dollars in accordance with
                  the above to DTC or its nominee for distribution to the
                  relevant Beneficial Holders; and

            (ii)  pay all the other amounts due which are denominated otherwise
                  than in U.S. dollars direct to the relevant Beneficial Holders
                  in accordance with the payment instructions received from DTC
                  or its nominee.

      In the event that the Exchange Agent is unable to convert the relevant
      Specified Currency into U.S. dollars, the entire payment will be made in
      the relevant Specified Currency in accordance with the payment
      instructions received from DTC following notification by the Exchange
      Agent to DTC of such fact.

      For the purposes of this clause "New York Business Day" means a day (other
      than a Saturday or a Sunday) on which foreign exchange markets are open
      for business in New York City that is neither a legal holiday nor a day on
      which banking institutions are authorised or required by law or regulation
      to close in the city of New York and (i) with respect to Notes denominated
      in a Specified Currency other than euro, in the principal financial centre
      of the

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      relevant Specified Currency (if other than New York City and which, if the
      Specified Currency is Australian dollars, shall be Sydney) and (ii) with
      respect to Notes denominated in euro a day on which the TARGET System is
      open.

(10)  If the Issuer has notified the Agent, Euroclear and Clearstream,
      Luxembourg that it has elected to redenominate the Notes in euro in
      accordance with Condition 4:

      (a)   the Agent shall promptly determine and notify the Noteholders of the
            denominations in euro of any definitive Notes which are required to
            be issued; and

      (b)   the Agent shall promptly perform the duties required of it under
            Condition 4.

(11)  If the amount of principal and/or interest then due for payment is not
      paid in full (otherwise than by reason of a deduction required by law to
      be made therefrom or a certification required by the terms of a Note not
      being received), the Paying Agent or the Registrar, as the case may be, to
      which a Note, Coupon or Receipt (as the case may be) is presented for the
      purpose of making such payment shall make a record of such shortfall on
      the Note and such record shall, in the absence of manifest error, be prima
      facie evidence that the payment in question has not to that extent been
      made.

(12)  The Paying Agent and the Registrar shall each ensure that payments in
      respect of Registered Notes will be made only to the extent that each
      holder and beneficial owner of such Registered Notes provides relevant
      documentation in accordance with Condition 6(a).

22.   DETERMINATIONS AND NOTIFICATIONS IN RESPECT OF NOTES AND INTEREST
      DETERMINATION

(1)   Determinations and Notifications

      (a)   The Agent shall, unless otherwise specified in the applicable
            Pricing Supplement, make all such determinations and calculations
            (howsoever described) as it is required to do under the Conditions,
            all subject to and in accordance with the Conditions.

      (b)   The Agent shall not be responsible to the Issuer, the Guarantor or
            to any third party (except in the event of negligence, default or
            bad faith of the Agent, as the case may be) as a result of the Agent
            having acted on any quotation given by any Reference Bank or (in the
            case of Linked Notes) a reputable broker-dealer or securities house
            which subsequently may be found to be incorrect.

      (c)   The Agent shall promptly notify (and confirm in writing to) the
            Issuer, the other Paying Agents, the Registrar (in the case of
            Registered Notes), and (in respect of a Series of Notes listed on a
            stock exchange) the relevant Stock Exchange of, amongst other
            things, each Rate of Interest, Interest Amount and Interest Payment
            Date and all other amounts, rates and dates which it is obliged to
            determine or calculate under the Conditions as soon as practicable
            after the determination thereof and of any subsequent amendment
            thereto pursuant to the Conditions.

      (d)   The Agent shall use its best endeavours to cause each Rate of
            Interest, Interest Amount and Interest Payment Date and all other
            amounts, rates and dates which it is obliged to determine or
            calculate under the Conditions to be published as required in
            accordance with the Conditions as soon as possible after their
            determination or calculation.

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      (e)   If the Agent does not at any material time for any reason determine
            and/or calculate and/or publish the Rate of Interest, Interest
            Amount and/or Interest Payment Date in respect of any Interest
            Period or any other amount, rate or date as provided in this clause,
            it shall forthwith notify the Issuer, the Registrar (in the case of
            Registered Notes) and the other Paying Agents of such fact.

      (f)   Determinations with regard to Notes (including, without limitation,
            Indexed Notes, Linked Notes and Dual Currency Notes) shall be made
            by the Calculation Agent specified in the applicable Pricing
            Supplement in the manner specified in the applicable Pricing
            Supplement and unless otherwise agreed between the Issuer and the
            relevant Dealer, such determinations shall be made on the basis of
            the Calculation Agency Agreement. Notes of any Series may specify
            additional duties and obligations of the Agent, any Paying Agent,
            any Transfer Agent, the Exchange Agent or the Registrar as set out
            in the Conditions, the performance of which will be agreed between
            the Issuer and the Agent prior to the relevant Issue Date.

(2)   Interest Determination, Screen Rate Determination including Fallback
      Provisions

      (a)   Where Screen Rate Determination is specified in the applicable
            Pricing Supplement as the manner in which the Rate of Interest is to
            be determined, the Rate of Interest for each Interest Period will,
            subject as provided below, be:

            (i)   the offered quotation (if there is only one quotation on the
                  Relevant Screen Page); or

            (ii)  the arithmetic mean (rounded if necessary to the fifth decimal
                  place, with 0.000005 being rounded upwards) of the offered
                  quotations,

            (expressed as a percentage rate per annum), for deposits in the
            Specified Currency for the relevant Interest Period which appears or
            appear, as the case may be, on the Relevant Screen Page as at 11.00
            a.m. (London time, in the case of LIBOR, or Brussels time, in the
            case of EURIBOR) on the Interest Determination Date in question plus
            or minus (as indicated in the applicable Pricing Supplement) the
            Margin (if any), all as determined by the Agent. If five or more
            such offered quotations are available on the Relevant Screen Page,
            the highest (or, if there is more than one such highest quotation,
            one only of such quotations) and the lowest (or, if there is more
            than one such lowest quotation, one only of such quotations) shall
            be disregarded by the Agent for the purpose of determining the
            arithmetic mean (rounded as provided above) of such offered
            quotations.

      (b)   If the Relevant Screen Page is not available or, if in the case of
            (a)(i) above, no such offered quotation appears or, in the case of
            (a)(ii) above, fewer than three such offered quotations appear, in
            each case as at the time specified in sub-clause (a), the Agent
            shall request the principal London office of each of the Reference
            Banks (as defined below) to provide the Agent with its offered
            quotation (expressed as a percentage rate per annum) for deposits in
            the Specified Currency for the relevant Interest Period at
            approximately 11.00 a.m. (London time) on the Interest Determination
            Date in question. If two or more of the Reference Banks provide the
            Agent with such offered quotations, the Rate of Interest for such
            Interest Period shall be the arithmetic mean (rounded if necessary
            to the fifth decimal place with 0.000005 being rounded upwards) of
            such offered quotations plus or minus (as appropriate) the Margin
            (if any), all as determined by the Agent.

      (c)   If on any Interest Determination Date one only or none of the
            Reference Banks

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            provides the Agent with such offered quotations as provided in the
            preceding paragraph, the Rate of Interest for the relevant Interest
            Period shall be the rate per annum which the Agent determines as
            being the arithmetic mean (rounded if necessary to the fifth decimal
            place, with 0.000005 being rounded upwards) of the rates, as
            communicated to (and at the request of) the Agent by the Reference
            Banks or any two or more of them, at which such banks were offered,
            at approximately 11.00 a.m. (London time) on the relevant Interest
            Determination Date, deposits in the Specified Currency for the
            relevant Interest Period by leading banks in the London inter-bank
            market plus or minus (as appropriate) the Margin (if any) or, if
            fewer than two of the Reference Banks provide the Agent with such
            offered rates, the offered rate for deposits in the Specified
            Currency for the relevant Interest Period, or the arithmetic mean
            (rounded as provided above) of the offered rates for deposits in the
            Specified Currency for the relevant Interest Period, at which, at
            approximately 11.00 a.m. (London time) on the relevant Interest
            Determination Date, any one or more banks (which bank or banks is or
            are in the opinion of the Issuer suitable for such purpose) informs
            the Agent it is quoting to leading banks in the London inter-bank
            market plus or minus (as appropriate) the Margin (if any), provided
            that, if the Rate of Interest cannot be determined in accordance
            with the foregoing provisions of this paragraph, the Rate of
            Interest shall be determined as at the last preceding Interest
            Determination Date (though substituting, where a different Margin is
            to be applied to the relevant Interest Period from that which
            applied to the last preceding Interest Period, the Margin relating
            to the relevant Interest Period, in place of the Margin relating to
            that last preceding Interest Period).

      (d)   If the Reference Rate from time to time in respect of Floating Rate
            Notes is specified in the applicable Pricing Supplement as being
            other than the London inter-bank offered rate or the European
            inter-bank offered rate, the Rate of Interest in respect of such
            Notes will be determined as provided in the applicable Pricing
            Supplement.

23.   NOTICE OF ANY WITHHOLDING OR DEDUCTION

(1)   If the Issuer and/or the Guarantor is/are, in respect of any payment,
      compelled to withhold or deduct any amount for or on account of taxes,
      duties, assessments or governmental charges as specifically contemplated
      under the Conditions, the Issuer and/or the Guarantor shall give notice
      thereof to the Agent (in the case of Bearer Notes) or the Registrar (in
      the case of Registered Notes) as soon as it becomes aware of the
      requirement to make such withholding or deduction and shall give to the
      Agent, in the case of Bearer Notes, or the Registrar, in the case of
      Registered Notes, such information as it shall require to enable it to
      comply with such requirement.

(2)   If any Paying Agent, the Registrar or the Exchange Agent is, in respect of
      any payment of principal or interest in respect of the Notes, compelled to
      withhold or deduct any amount for or on account of any tax, duty or charge
      as specifically contemplated under the Conditions, other than arising by
      virtue of the relevant holder failing to perform any certification or
      other requirement in respect of its Notes, it shall give notice thereof to
      the Issuer, the Guarantor and the Agent as soon as it becomes aware of
      such compulsion to withhold or deduct.

24.   OTHER DUTIES OF THE REGISTRAR

(1)   The Registrar shall perform such duties as are set out herein and the
      Conditions and, in performing those duties, shall act in accordance with
      the Conditions and the provisions of this Agreement.

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(2)   The Registrar shall, subject to sub-clause (4), so long as any Note is
      outstanding:

      (a)   maintain at its specified office a register (the "Register") of the
            holders of the Registered Notes which shall show: (i) the nominal
            amounts and the serial numbers of the Registered Notes; (ii) the
            dates of issue of all Registered Notes; (iii) all subsequent
            transfers and changes of ownership of Registered Notes; (iv) the
            names and addresses of the holders of the Registered Notes; (v) all
            cancellations of Registered Notes, whether because of their purchase
            by the Issuer, the Guarantor or any of their respective Subsidiaries
            or holding companies, their replacement or otherwise, and (vi) all
            replacements of Registered Notes (subject, where appropriate, in the
            case of (v), to the Registrar having been notified as provided in
            this Agreement);

      (b)   effect exchanges of Definitive Bearer Notes for Registered Notes in
            global and definitive form, interests in Registered Global Notes for
            interests in a Registered Global Note of a different type of the
            same Series, interests in Registered Global Notes for Definitive
            Registered Notes and interests in Definitive Registered Notes for
            Registered Global Notes, in accordance with the Conditions and this
            Agreement, keep a record of all exchanges and ensure that the Agent
            is notified forthwith after any exchange;

      (c)   register all transfers of Registered Notes;

      (d)   make any necessary notations on Registered Global Notes following
            transfer or exchange of Notes;

      (e)   receive any document in relation to or affecting the title to any of
            the Registered Notes including all forms of transfer, forms of
            exchange, probates, letters of administration and powers of
            attorney;

      (f)   forthwith, and in any event within three Business Days (being days
            when banks are open for business in the city in which the specified
            office of the Registrar is located) of the relevant request (or such
            longer period as may be required to comply with any applicable
            fiscal or other regulations), upon receipt by it, or receipt by it
            of notification from any other Transfer Agent of delivery to it of
            Definitive Registered Notes for transfer (together with, as
            applicable, any Transfer Certificate and/or IAI Investment Letter)
            or Definitive Bearer Notes for exchange into Registered Notes
            (together with a duly completed Exchange Request) or subsequent to
            the endorsement of a reduction in nominal amount of a Registered
            Global Note for exchange into Definitive Registered Notes,
            authenticate and issue duly dated and completed Definitive
            Registered Notes at its specified office or (at the risk of the
            relevant registered holders) send the Definitive Registered Notes to
            such address as the registered holders may request.

      (g)   maintain proper records of the details of all documents received by
            itself or any other Transfer Agent (subject to receipt of such
            information from the other Transfer Agents);

      (h)   prepare all such lists of holders of the Registered Notes as may be
            required by the Issuer or the Agent or any person authorised by
            either of them;

      (i)   subject to applicable laws and regulations at all reasonable times
            during office hours make the Register available to the Issuer or any
            person authorised by it or the holder

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            of any Registered Note for inspection and for the taking of copies
            or extracts;

      (j)   comply with the reasonable requests of the Issuer with respect to
            the maintenance of the Register and give to the Agents and the
            Transfer Agents such information as may be reasonably required by it
            for the proper performance of their duties; and

      (k)   comply with the terms of any Transfer Notices.

(3)   Notwithstanding anything to the contrary in this Agreement, in the event
      of a partial redemption of Notes under Condition 7, the Registrar shall
      not be required, unless so directed by the Issuer: (a) to register the
      transfer of Registered Notes (or parts of Registered Notes) or to effect
      exchanges of interests in Definitive Bearer Notes for Registered Notes in
      global and definitive form, interests in Registered Global Notes for
      interests in Registered Global Notes of a different type of the same
      Series, interests in Registered Global Notes for Definitive Registered
      Notes and interests in Definitive Registered Notes for Registered Global
      Notes during the period beginning on the sixty-fifth day before the date
      of the partial redemption and ending on the date on which notice is given
      specifying the serial numbers of Notes called (in whole or in part) for
      redemption (both inclusive); or (b) to register the transfer of any
      Registered Note (or part of a Registered Note) called for partial
      redemption.

(4)   Registered Notes shall be dated:

      (a)   in the case of a Definitive Registered Note issued on the Issue
            Date, the Issue Date; or

      (b)   in the case of a Definitive Registered Note issued in exchange for
            an interest in a Registered Global Note or a Bearer Global Note, or
            upon transfer, with the date of registration in the Register of the
            exchange or transfer; or

      (c)   in the case of a Definitive Registered Note issued to the transferor
            upon transfer in part of a Registered Note, with the same date as
            the date of the Registered Note transferred; or

      (d)   in the case of a Definitive Registered Note issued pursuant to
            clause 30, with the same date as the date of the lost, stolen,
            mutilated, defaced or destroyed Registered Note in replacement of
            which it is issued.

25.   DUTIES OF THE TRANSFER AGENTS

(1)   The Transfer Agents shall perform such duties as are set out herein and in
      the Conditions and, in performing those duties, shall act in accordance
      with the Conditions and the provisions of this Agreement.

(2)   Each Transfer Agent shall:

      (a)   accept (i) Bearer Notes delivered to it with a duly completed
            request for exchange for Registered Notes substantially in the form
            set out in Schedule 7A hereto (an "Exchange Request") (provided
            that, except as specified in the Conditions, all unmatured Coupons,
            Receipts and Talons appertaining to the Bearer Notes are attached to
            or delivered with the Bearer Notes) and (ii) Registered Notes
            delivered to it, with the form of transfer thereon duly executed,
            together with, as applicable, any Transfer Certificate and/or IAI
            Investment Letter for transfer or exchange of all or part of the
            Registered Note in accordance with the Conditions, and shall, in
            each case, give to the Registrar all relevant details to enable it
            to issue Registered Notes in

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            accordance with each request;

      (b)   keep a stock of Exchange Requests, Transfer Certificates and IAI
            Investment Letters and make such Exchange Requests available on
            demand to holders of the Notes;

      (c)   keep a stock of Transfer Notices (in the form set out in Schedule 7B
            hereto) to be made available upon request by holders of the Notes;
            and

      (d)   if appropriate, charge to the holder of a Bearer Note or Registered
            Note presented for exchange or transfer (i) the costs or expenses
            (if any) of the Registrar in delivering Registered Notes issued on
            such exchange or transfer other than by regular mail and (ii) a sum
            sufficient to cover any stamp duty, tax or other governmental charge
            that may be imposed in relation to the exchange or transfer and, in
            each case, account to the Registrar for those charges.

26.   REGULATIONS FOR TRANSFERS AND EXCHANGES OF REGISTERED NOTES AND EXCHANGE
      OF BEARER NOTES

(1)   At the option of the holder and subject to Condition 12 and the terms of
      this Agreement and to all applicable laws and regulations, Bearer Notes
      (provided that, except as specified in the Conditions, all unmatured
      Coupons, Receipts and Talons appertaining to the Bearer Notes are attached
      to or delivered with the Bearer Notes) will be exchangeable for an equal
      aggregate nominal amount of Registered Notes.

(2)   Subject as provided below, the Issuer may from time to time agree with the
      Agent and the Registrar reasonable regulations to govern the transfer and
      registration of Registered Notes and the exchange of Registered Notes. The
      initial regulations, which shall apply until amended under this clause,
      are set out in Schedule 8 hereto. The Transfer Agents agree to comply with
      the regulations as amended from time to time.

27.   DUTIES IN CONNECTION WITH EARLY REDEMPTION

(1)   If the Issuer decides to redeem any Notes for the time being outstanding
      prior to their Maturity Date in accordance with the Conditions, the Issuer
      shall give notice of such decision to the Agent stating the date on which
      such Notes are to be redeemed and the nominal amount of Notes to be
      redeemed not less than 15 days before the latest date for the publication
      of the notice of redemption required to be given to the Noteholders.

(2)   If some only of the Notes are to be redeemed on such date, the Agent shall
      make the required drawing in accordance with the Conditions but shall give
      the Issuer reasonable notice of the time and place proposed for such
      drawing and the Issuer shall be entitled to send representatives to attend
      such drawing.

(3)   The Agent shall publish the notice required in connection with any such
      redemption and shall at the same time also publish a separate list of the
      serial numbers of any Notes previously drawn and not presented for
      redemption. Such notice shall specify the date fixed for redemption, the
      redemption amount, the manner in which redemption will be effected and, in
      the case of a partial redemption, the serial numbers of the Notes to be
      redeemed. Such notice will be published in accordance with the Conditions.
      The Agent will also notify the other Paying Agents, in the case of Bearer
      Notes, and the Exchange Agent and Transfer Agents, in the case of
      Registered Notes, of any date fixed for redemption of any Notes.

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(4)   Each Paying Agent, Transfer Agent and the Registrar will keep a stock of
      Put Notices in the form set out in Schedule 4 and will make such notices
      available on demand to holders of Notes, the Conditions of which provide
      for redemption at the option of Noteholders. Upon receipt of any Note
      deposited in the exercise of such option in accordance with the
      Conditions, the Paying Agent, the Transfer Agent or the Registrar, as the
      case may be, with which such Note is deposited shall hold such Note
      (together with any unmatured Receipts, Coupons and Talons relating to it
      deposited with it) on behalf of the depositing Noteholder (but shall not,
      save as provided below, release it) until the due date for redemption of
      the relevant Note consequent upon the exercise of such option, when,
      subject as provided below, it shall present such Note (and any such
      unmatured Receipts, Coupons and Talons) to itself for payment of the
      amount due thereon together with any interest due on such date in
      accordance with the Conditions and shall pay, or, in the case of a
      Transfer Agent, will notify a Paying Agent to pay, such moneys in
      accordance with the directions of the Noteholder contained in the relevant
      Put Notice. If, prior to such due date for its redemption, such Note
      becomes immediately due and repayable or if, upon due presentation,
      payment of such redemption moneys is improperly withheld or refused, the
      Paying Agent or Transfer Agent concerned or the Registrar, as the case may
      be, shall post such Note (together with any such Receipts, Coupons and
      Talons) by uninsured post to such address as may have been given by the
      Noteholder in the Put Notice and at the risk of the relevant Noteholder,
      unless the Noteholder has otherwise requested and paid the costs of such
      insurance to the relevant Paying Agent, Transfer Agent or the Registrar,
      as the case may be, at the time of depositing the Notes. At the end of
      each period for the exercise of such option, each Paying Agent (if such
      Paying Agent is not the Agent), Transfer Agent or the Registrar, as the
      case may be, shall promptly notify the Agent of the nominal amount of the
      Notes in respect of which such option has been exercised with it together
      with their serial numbers and the Agent shall promptly notify such details
      to the Issuer.

(5)   The Agent on behalf of the Issuer will cause notice to be published in
      accordance with the Conditions not less than seven days nor more than 21
      days before each due date for payment of a second or subsequent instalment
      of the subscription price for any Partly Paid Notes, reminding holders of
      the Partly Paid Notes of the due date for payment of the relevant
      instalment, the procedure for payment and that failure to pay such
      instalment, together with accrued interest for late payment, if
      appropriate, on any Partly Paid Note will entitle the Issuer to forfeit
      the same and retain for its own use and benefit the first or previous
      instalments thereon.

28.   RECEIPT AND PUBLICATION OF NOTICES

(1)   Forthwith upon the receipt by the Agent of a demand or notice from any
      Noteholder in accordance with the Conditions, the Agent shall forward a
      copy thereof to the Issuer.

(2)   On behalf of and at the request and expense of the Issuer (failing which,
      the Guarantor), the Agent shall cause to be published all notices required
      to be given by the Issuer or the Guarantor to the Noteholders in
      accordance with the Conditions.

29.   CANCELLATION OF DEFINITIVE NOTES, RECEIPTS, COUPONS AND TALONS

(1)   All Definitive Notes which are redeemed or transferred, all Receipts or
      Coupons which are paid and all Talons which are exchanged shall be
      cancelled by the Agent, Paying Agent or Registrar by which they are
      redeemed, transferred, paid or exchanged. In addition, all Notes which are
      purchased by or on behalf of the Issuer, the Guarantor or any of their
      respective Subsidiaries or holding companies and are surrendered to a
      Paying Agent or the Registrar for

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      cancellation, together (in the case of Notes in definitive bearer form)
      with all unmatured Receipts, Coupons or Talons (if any) attached thereto
      or surrendered therewith, shall be cancelled by the Paying Agent to which
      they are surrendered or the Registrar, as the case may be. Each of the
      Paying Agents and the Registrar shall give to the Agent details of all
      payments made by it and shall deliver all cancelled Notes, Receipts,
      Coupons and Talons to the Agent or as the Agent may specify.

(2)   The Agent shall deliver a certificate stating to the Issuer as soon as
      practicable and in any event within three months after the date of any
      redemption or, as the case may be, payment, purchase, transfer,
      cancellation, exchange or replacement of any Note:

      (a)   the aggregate principal amount of Notes or Receipts which have been
            redeemed and the aggregate amounts in respect of Coupons which have
            been paid and the Securities Amount(s) (if any) which has/have been
            paid and/or delivered in accordance with the Conditions;

      (b)   the serial numbers of such Definitive Notes, Receipts, Coupons and
            Talons distinguishing between Bearer Notes and Registered Notes;

      (c)   the total numbers (where applicable, of each denomination) by
            maturity date of such Coupons;

      (d)   the aggregate amount of interest paid (and the due dates of such
            payments) on Global Notes and/or on Registered Notes;

      (e)   the aggregate principal amounts of Notes (if any) which have been
            purchased by or on behalf of the Issuer, the Guarantor, any holding
            company of such person or any Subsidiary of such person or any such
            holding company and cancelled and the serial numbers of such
            Definitive Notes, Receipts and Talons and the total number (where
            applicable, of each denomination) by maturity date of the Coupons
            attached thereto or surrendered therewith;

      (f)   the aggregate principal amounts of Notes or Receipts, the number of
            Talons and the aggregate amounts in respect of Coupons which have
            been so exchanged or surrendered and replaced and the serial numbers
            of such Definitive Notes and the total number (where applicable, of
            each denomination) by maturity date of such Coupons;

      (g)   the total number (where applicable, of each denomination) by
            maturity date of unmatured Coupons missing from Definitive Notes
            bearing interest at a fixed rate which have been redeemed or
            exchanged or surrendered and replaced and the serial numbers of the
            Definitive Notes to which such missing unmatured Coupons
            appertained; and

      (h)   the total number (where applicable, of each denomination) by
            maturity date of Talons which have been exchanged for further
            Coupons.

(3)   The Agent shall destroy all cancelled Notes, Receipts, Coupons and Talons
      and, forthwith upon destruction, furnish the Issuer with a certificate of
      the serial numbers of the Notes (in the case of Notes in definitive form)
      and the number by maturity date of Receipts, Coupons and Talons so
      destroyed.

(4)   Without prejudice to the obligations of the Agent pursuant to sub-clause
      (2), the Agent shall keep a full and complete record of all Notes,
      Receipts, Coupons and Talons (other than serial

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      numbers of Coupons except those which have been replaced pursuant to
      Condition 11) and of their redemption, purchase by or on behalf of the
      Issuer or the Guarantor or any of their respective Subsidiaries or holding
      companies and cancellation, payment or exchange (as the case may be) and
      of all replacement Notes, Receipts, Coupons or Talons issued in
      substitution for mutilated, defaced, destroyed, lost or stolen Notes,
      Receipts, Coupons or Talons and of all Securities Amount(s) (if any) paid
      or delivered in respect of the Notes. The Agent shall at all reasonable
      times make such record available to the Issuer, the Guarantor and any
      persons authorised by either of them for inspection and for the taking of
      copies thereof or extracts therefrom.

(5)   All records and certificates made or given pursuant to this clause and
      clause 30 shall make a distinction between Notes, Receipts, Coupons and
      Talons of each Series and between Bearer Notes and Registered Notes.

30.   ISSUE OF REPLACEMENT NOTES, RECEIPTS, COUPONS AND TALONS

(1)   The Issuer will cause a sufficient quantity of additional forms of: (a)
      Bearer Notes, Receipts, Coupons and Talons to be available, upon request,
      to the Agent at its specified office for the purpose of issuing
      replacement Bearer Notes, Receipts, Coupons and Talons as provided below;
      and (b) Registered Notes to be available, upon request, to the Registrar
      at its specified office for the purpose of issuing replacement Registered
      Noes as provided below.

(2)   The Agent and the Registrar will, subject to and in accordance with the
      Conditions and the following provisions of this clause, cause to be
      authenticated and delivered any replacement Notes, Receipts, Coupons and
      Talons which the Issuer may determine to issue in place of Notes,
      Receipts, Coupons and Talons which have been lost, stolen, mutilated,
      defaced or destroyed.

(3)   In the case of a mutilated or defaced Note, the Agent shall ensure that
      (unless otherwise covered by such indemnity as the Issuer and the
      Guarantor may reasonably require) any replacement Note will only have
      attached to it Receipts, Coupons and Talons corresponding to those (if
      any) attached to the mutilated or defaced Note which is presented for
      replacement.

(4)   The Agent, or as the case may be, the Registrar, shall obtain verification
      in the case of an allegedly lost, stolen or destroyed Note, Talon, Receipt
      or Coupon in respect of which the serial number is known, that the Note,
      Talon, Receipt or Coupon has not previously been redeemed, paid or
      exchanged, as the case may be. Neither the Agent nor, as the case may be,
      the Registrar, shall issue any replacement Note, Receipt, Coupon or Talon
      unless and until the applicant therefor shall have:

      (a)   paid such reasonable costs and expenses as may be incurred in
            connection therewith;

      (b)   furnished it with such evidence and indemnity as the Issuer and the
            Guarantor may reasonably require; and

      (c)   in the case of any mutilated or defaced Note, Receipt, Coupon or
            Talon, surrendered it to the Agent or, as the case may be, the
            Registrar.

(5)   The Agent or, as the case may be, the Registrar shall cancel any mutilated
      or defaced Notes, Receipts, Coupons and Talons in respect of which
      replacement Notes, Receipts, Coupons and Talons have been issued pursuant
      to this clause and shall furnish the Issuer with a certificate stating the
      serial numbers of the Notes, Receipts, Coupons and Talons so cancelled
      and, unless otherwise instructed by the Issuer in writing, shall destroy
      such cancelled Notes,

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      Receipts, Coupons and Talons and furnish the Issuer with a destruction
      certificate containing the information specified in sub-clause 29(3).

(6)   The Agent or, as the case may be, the Registrar shall, on issuing any
      replacement Note, Receipt, Coupon or Talon, forthwith inform the Issuer,
      the Guarantor and, as the case may be, the Registrar and the other Paying
      Agents, the Transfer Agents and (to the extent applicable) the Agent or
      the Registrar of the serial number of such replacement Note, Receipt,
      Coupon or Talon issued and (if known) of the serial number of the Note,
      Receipt, Coupon or Talon in place of which such replacement Note, Receipt,
      Coupon or Talon has been issued. Whenever replacement Receipts, Coupons or
      Talons are issued pursuant to the provisions of this clause, the Agent
      shall also notify the other Paying Agents and the Transfer Agents of the
      maturity dates of the lost, stolen, mutilated, defaced or destroyed
      Receipts, Coupons or Talons and of the replacement Receipts, Coupons or
      Talons issued.

(7)   The Agent and the Registrar shall keep a full and complete record of all
      replacement Notes, Receipts, Coupons and Talons issued by them and shall
      make such record available at all reasonable times to the Issuer, the
      Guarantor and any persons authorised by either of them for inspection and
      for the taking of copies thereof or extracts therefrom.

(8)   Whenever any Bearer Note, Receipt, Coupon or Talon for which a replacement
      Bearer Note, Receipt, Coupon or Talon has been issued and in respect of
      which the Series and serial number is known is presented to the Agent or
      any of the Paying Agents for payment or to any of the Transfer Agents for
      exchange or a Definitive Registered Note for which a replacement
      Definitive Registered Note has been issued is presented to the Registrar
      for payment or to any of the Transfer Agents for transfer, the party to
      whom such Note, Receipt, Coupon or Talon has been presented shall
      immediately send notice thereof to the Issuer, the Guarantor and the Agent
      or the Registrar, as the case may be.

(9)   The Paying Agents shall issue further Coupon sheets against surrender of
      Talons. A Talon so surrendered shall be cancelled by the relevant Paying
      Agent who (except where such Paying Agent is the Agent) shall inform the
      Agent of its serial number. Further Coupon sheets issued on surrender of
      Talons shall carry the same serial number as the surrendered Talon.

31.   COPIES OF DOCUMENTS AVAILABLE FOR INSPECTION

(1)   The executed Guarantee shall be deposited with the Agent and shall be held
      in safe custody by it on behalf of the Noteholders, the Receiptholders and
      the Couponholders at its specified office for the time being.

(2)   The Agent, the Paying Agents, the Registrar and the Transfer Agents shall
      hold available at its specified office during normal business hours for
      inspection copies of:

      (a)   the Certificate of Incorporation and By-laws of the Guarantor and
            the Memorandum and Articles of Association of the Issuer;

      (b)   the published audited consolidated audited financial statements of
            the Group contained in the Guarantor's Annual Report on Form 10-K in
            respect of the financial years ended November 30, 2001 and November
            30, 2000, the five months ended November 26, 1999 and the fiscal
            year ended June 30, 1999;

      (c)   the most recently available audited consolidated financial
            statements of the Group and audited non-consolidated financial
            statements of the Guarantor contained in the Guarantor's Annual
            Report on Form 10-K, the most recently available published

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            quarterly reports of the Guarantor on Form 10-Q and any filings of
            the Guarantor on Form 8-K which contain consolidated financial
            statements of the Group and/or non-consolidated financial statements
            of the Guarantor;

      (d)   this Agreement;

      (e)   the Deed of Covenant;

      (f)   the Guarantee;

      (g)   the Offering Circular;

      (h)   any future offering circulars, information memoranda and supplements
            to the Offering Circular and any other documents incorporated
            therein by reference (save that a Pricing Supplement relating to an
            unlisted Note will only be available for inspection by a holder of
            such Note and such holder must produce evidence satisfactory to the
            Paying Agent or Registrar as to the identity of such holder); and

      (i)   in the case of a syndicated issue of listed Notes, the syndication
            agreement (or equivalent document).

      For this purpose, the Issuer (failing which, the Guarantor) shall furnish
      the Agent, the Paying Agents, the Registrar and the Transfer Agents with
      sufficient copies of each of such documents.

32.   MEETINGS OF NOTEHOLDERS

(1)   The provisions of Schedule 3 shall apply to meetings of the Noteholders.

(2)   Each of the Agent and the Paying Agents on the request of any holder of
      Bearer Notes shall issue voting certificates and block voting instructions
      in accordance with Schedule 3 hereto and shall forthwith give notice to
      the Issuer in writing of any revocation or amendment of a block voting
      instruction. Each of the Agent and the Paying Agents will keep a full and
      complete record of all voting certificates and block voting instructions
      issued by it and will, not less than 24 hours before the time appointed
      for holding a meeting or adjourned meeting, deposit at such place as the
      Agent shall designate or approve, full particulars of all voting
      certificates and block voting instructions issued by it in respect of such
      meeting or adjourned meeting. Forms for this purpose shall be made
      available to the Agent at the expense of the Issuer (failing which, the
      Guarantor) for distribution to the other Paying Agents.

33.   COMMISSIONS AND EXPENSES

(1)   The Issuer (failing which, the Guarantor) agrees to pay to the Registrar
      for distribution among the agents party to this Agreement such fees and
      commissions as the Issuer, the Guarantor and the Registrar have agreed in
      respect of the respective services of the Agent, the Registrar, the Paying
      Agents, the Transfer Agents and the Exchange Agent together with any
      reasonable expenses (including legal, printing, postage, fax, cable and
      advertising expenses) incurred by such entities in connection with their
      said services.

(2)   In addition, the Issuer (failing which, the Guarantor) agrees to reimburse
      the reasonable out-of-pocket expenses (including advertising costs and
      legal fees) incurred by each of the Agent,

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      the Registrar, the Paying Agents, the Transfer Agents and the Exchange
      Agent, as the case may be, in connection with the preparation, execution
      and delivery of this Agreement.

(3)   The Registrar will make payment of the fees and commissions due hereunder
      to itself, the Agent, the Paying Agents, the Transfer Agents and the
      Exchange Agent and will reimburse their expenses promptly after the
      receipt of the relevant moneys from the Issuer or the Guarantor (as the
      case may be). Neither the Issuer or the Guarantor (as the case may be)
      shall be responsible for any such payment or reimbursement by the
      Registrar.

34.   AUTHORITY TO DISTRIBUTE DOCUMENTS

      Subject to clause 5, each of the Issuer and the Guarantor hereby
      authorises each Dealer on behalf of the Issuer and the Guarantor, to
      provide copies of and make oral statements consistent with the Offering
      Circular and such additional written information as the Issuer and/or the
      Guarantor shall provide to any Dealer or approve for any Dealer to use or
      such other information as is in the public domain as a result of action
      taken by the Issuer and/or the Guarantor to actual and potential
      purchasers of Notes.

35. REPAYMENT BY THE AGENT AND THE REGISTRAR

      Upon the Issuer or the Guarantor, as the case may be, being discharged
      from its obligation to make payments in respect of any Notes pursuant to
      the relevant Conditions, and provided that there is no outstanding, bona
      fide and proper claim in respect of any such payments, the Agent or the
      Registrar, as the case may be, shall forthwith on demand pay to the Issuer
      or the Guarantor, as the case may be, sums equivalent to any amounts paid
      to it by the Issuer or the Guarantor, as the case may be, for the purposes
      of such payments.

36.   CONDITIONS OF APPOINTMENT

(1)   The Agent, the Registrar, the Exchange Agent, any Settlement Agent and
      each Paying Agent or Transfer Agent shall be entitled to deal with money
      paid to it by the Issuer or the Guarantor for the purpose of this
      Agreement in the same manner as other money paid to a banker by its
      customers except:

      (a)   that it shall not exercise any right of set-off, lien or similar
            claim in respect thereof;

      (b)   as provided in sub-clause (2) ; and

      (c)   that it shall not be liable to account to the Issuer or the
            Guarantor, as the case may be, for any interest thereon.

(2)   In acting hereunder and in connection with the Notes, the Agent, the
      Paying Agents, the Transfer Agents, the Exchange Agent, the Registrar and
      any Settlement Agent shall act solely as agents of the Issuer and the
      Guarantor and will not thereby assume any obligations towards or
      relationship of agency or trust for or with any of the owners or holders
      of the Notes, Receipts, Coupons or Talons, except that all amounts held by
      the Agent, the Paying Agents, the Exchange Agent, the Registrar or any
      Settlement Agent for payment or delivery to the Noteholders, Couponholders
      and Receiptholders shall be held in trust, to be applied as set forth
      herein, but need not be segregated from other amounts except as required
      by law.

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(3)   Each of the Agent, the Paying Agents, the Transfer Agents, the Exchange
      Agent, the Registrar and any Settlement Agent hereby undertake to the
      Issuer and the Guarantor to perform such obligations and duties, and shall
      be obliged to perform such duties and only such duties, as are herein and
      in the Conditions and in the Procedures Memorandum specifically set forth,
      and no implied duties or obligations shall be read into this Agreement or
      the Notes against the Agent, the Paying Agents, the Transfer Agents, the
      Exchange Agent, the Registrar or any Settlement Agent other than the duty
      to act honestly and in good faith and to exercise the diligence of a
      reasonably prudent agent in comparable circumstances.

(4)   The Agent and the Registrar may consult with legal and other professional
      advisers and the opinion of such advisers shall be full and complete
      protection in respect of any action taken, omitted or suffered hereunder
      in good faith and in accordance with the opinion of such advisers.

(5)   Each of the Agent, the Paying Agents, the Transfer Agents, the Exchange
      Agent and the Registrar shall be protected and shall incur no liability
      for or in respect of any action taken, omitted or suffered in reliance
      upon any instruction, request or order from the Issuer or the Guarantor or
      any notice, resolution, direction, consent, certificate, affidavit,
      statement, cable, telex, facsimile transmission or other paper or document
      which it reasonably believes to be genuine and to have been delivered,
      signed or sent by the proper party or parties or upon written instructions
      from the Issuer or the Guarantor.

(6)   Any Settlement Agent shall be protected and shall incur no liability for
      or in respect of any action taken, omitted or suffered in reliance upon
      any instruction, request or order from the Issuer or the Guarantor or any
      Transfer Notice or other notice, resolution, direction, consent,
      certificate, affidavit, statement, cable, telex, facsimile transmission or
      other paper or document which it reasonably believes to be genuine and to
      have been delivered, signed or sent by the proper party or parties or upon
      written instructions from the Issuer or the Guarantor.

(7)   Any of the Agent, the Paying Agents, the Transfer Agents, the Exchange
      Agent, the Registrar or any Settlement Agent and their respective
      officers, directors and employees may become the owner of, or acquire any
      interest in, any Notes, Receipts, Coupons or Talons with the same rights
      that it or he would have if the Agent, the relevant Paying Agent or
      Transfer Agent concerned, the Exchange Agent, the Registrar or any
      Settlement Agent, as the case may be, were not appointed hereunder, and
      may engage or be interested in any financial or other transaction with the
      Issuer or the Guarantor and may act on, or as depositary, trustee or agent
      for, any committee or body of holders of Notes or Coupons or in connection
      with any other obligations of the Issuer or the Guarantor as freely as if
      the Agent, the relevant Paying Agent or Transfer Agent, the Exchange
      Agent, the Registrar or the Settlement Agent, as the case may be, were not
      appointed hereunder.

(8)   The Issuer and the Guarantor shall provide the Agent and the Registrar
      with a certified copy of the list of persons authorised to execute
      documents and take action on its behalf in connection with this Agreement
      and shall notify the Agent and the Registrar immediately in writing if any
      of such persons ceases to be so authorised or if any additional person
      becomes so authorised together, in the case of an additional authorised
      person, with evidence satisfactory to the Agent and the Registrar that
      such person has been so authorised.

37.   COMMUNICATION BETWEEN THE PARTIES

      A copy of all communications relating to the subject matter of this
      Agreement between the Issuer or the Guarantor and the Noteholders,
      Receiptholders or Couponholders and any of the

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      Paying Agents (other than the Agent), the Transfer Agents the Exchange
      Agent, the Registrar or any Settlement Agent shall be sent to the Agent.

38.   CHANGES IN AGENT, PAYING AGENTS, TRANSFER AGENTS, EXCHANGE AGENT,
      REGISTRAR AND SETTLEMENT AGENT

(1)   The Issuer and the Guarantor agree that, for so long as any Note is
      outstanding, or until moneys or securities (or other assets) for the
      payment or delivery, as the case may be, of all amounts in respect of all
      outstanding Notes have been made available to the Agent or the Registrar
      (where applicable):

      (a)   so long as any Notes are listed on any stock exchange, there will at
            all times be a Paying Agent (which may be the Agent), in the case of
            Bearer Notes, and a Transfer Agent (which may be the Registrar), in
            the case of Registered Notes, with a specified office in such place
            as may be required by the rules and regulations of the relevant
            stock exchange;

      (b)   there will at all times be a Paying Agent with a specified office in
            a principal financial centre in continental Europe;

      (c)   there will at all times be a Registrar with a specified office in
            New York City;

      (d)   there will at all times be a Transfer Agent;

      (e)   so long as any of the Registered Global Notes payable in a specified
            currency other than U.S. dollars are held through DTC or its
            nominee, there will at all times be an Exchange Agent with a
            specified office in New York City; and

      (f)   there will at all times be an Agent.

      In addition, the Issuer and the Guarantor shall forthwith appoint a Paying
      Agent having a specified office in New York City in the circumstances
      described in the final paragraph of Condition 6(b).

(2)   Any variation, termination, appointment or change shall only take effect
      (other than in the case of insolvency (as provided in sub-clause (5)),
      when it shall be of immediate effect) after not less than 30 nor more than
      45 days' prior notice thereof shall have been given to the Noteholders in
      accordance with the Conditions provided that no such variation,
      termination, appointment or change shall take effect (except in the case
      of insolvency) with 45 days before or after any Fixed Interest Date or
      Interest Payment Date, as the case may be.

(3)   The Agent may (subject as provided in sub-clause (5)) at any time resign
      as Agent by giving at least 90 days' written notice to the Issuer of such
      intention on its part, specifying the date on which its desired
      resignation shall become effective.

(4)   The Agent may (subject as provided in sub-clause (2), (5) and (7)) be
      removed at any time by the Issuer and the Guarantor on at least 45 days'
      notice by the filing with it of an instrument in writing signed on behalf
      of the Issuer and the Guarantor specifying such removal and the date when
      it shall become effective.

(5)   Any resignation under sub-clause (3) or removal under sub-clause (4) shall
      only take effect upon the appointment by the Issuer and the Guarantor as
      hereinafter provided, of a successor Agent and (other than in cases of
      insolvency of the Agent) on the expiry of the notice to be

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      given under clause 40. The Issuer and the Guarantor agree with the Agent
      that if, by the day falling ten days before the expiry of any notice under
      sub-clause (2), the Issuer and the Guarantor have not appointed a
      successor Agent, then the Agent shall be entitled, on behalf of the Issuer
      and the Guarantor, to appoint as a successor Agent in its place a
      reputable financial institution of good standing which the Issuer and the
      Guarantor shall approve.

(6)   In case at any time the Agent, any Paying Agent or Transfer Agent, the
      Exchange Agent, the Registrar or the Settlement Agent (if any) resigns, or
      is removed, or becomes incapable of acting or is adjudged bankrupt or
      insolvent, or files a voluntary petition in bankruptcy or makes an
      assignment for the benefit of its creditors or consents to the appointment
      of an administrator, liquidator or administrative or other receiver of all
      or a substantial part of its property, or admits in writing its inability
      to pay or meet its debts as they mature or suspends payment thereof, or if
      any order of any court is entered approving any petition filed by or
      against it under the provisions of any applicable bankruptcy or insolvency
      law or if a receiver of it or of all or a substantial part of its property
      is appointed or if any officer takes charge or control of it or of its
      property or affairs for the purpose of rehabilitation, conservation or
      liquidation, or, in the case of the Agent, it fails in respect of the
      Floating Rate Notes duly to determine the Rate of Interest, Interest
      Amount and/or Interest Payment Date in respect of any Interest Period as
      provided in the Conditions and this Agreement or fails to fulfil any other
      obligation under the Conditions or this Agreement, the Issuer or the
      Guarantor may forthwith without notice terminate the appointment of such
      Paying Agent or Transfer Agent or the Agent, Exchange Agent, Registrar or
      Settlement Agent, as the case may be, in which event notice thereof shall
      be given to the Noteholders in accordance with the Conditions as soon as
      practicable thereafter. A successor Agent, Paying Agent, Transfer Agent,
      Exchange Agent, Registrar or Settlement Agent, as the case may be, which
      shall be a reputable financial institution of good standing may be
      appointed by the Issuer and the Guarantor by an instrument in writing
      filed with the relevant successor. Upon the appointment as aforesaid of a
      successor Agent, Paying Agent, Transfer Agent, Exchange Agent, Registrar
      or Settlement Agent, as the case may be, and acceptance by the latter of
      such appointment and (other than in case of insolvency of the Agent,
      Paying Agent, Transfer Agent, Exchange Agent, Registrar or Settlement
      Agent, as the case may be, when it shall be of immediate effect) upon
      expiry of the notice to be given under clause 40 the Agent, Paying Agent,
      Transfer Agent, Exchange Agent, Registrar or Settlement Agent, as the case
      may be, so superseded shall cease to be the Agent, Paying Agent, Transfer
      Agent, Exchange Agent, Registrar or Settlement Agent, as the case may be,
      hereunder.

(7)   Subject to sub-clauses (1) and (2), the Issuer and the Guarantor may,
      after prior consultation with the Agent, terminate the appointment of any
      of the Paying Agents, the Transfer Agents, the Exchange Agent, the
      Registrar or any Settlement Agent at any time and/or appoint one or more
      further Paying Agents, Transfer Agents, Exchange Agent, Registrar or
      Settlement Agent by giving to the Agent, and to the relevant Paying Agent,
      Transfer Agent, Exchange Agent, Registrar or Settlement Agent, at least 45
      days' notice in writing to that effect (other than in the case of
      insolvency of the Paying Agent, Transfer Agent, Exchange Agent, Registrar
      or Settlement Agent, as the case may be).

(8)   Subject to sub-clause (1) and (2), all or any of the Paying Agents, the
      Transfer Agents, the Exchange Agent, the Registrar or any Settlement Agent
      may resign their respective appointments hereunder at any time by giving
      the Issuer, the Guarantor and the Agent at least 45 days' written notice
      to that effect.

(9)   Upon its resignation or removal becoming effective, the Agent or the
      relevant Paying Agent, Transfer Agent, Exchange Agent, Registrar or
      Settlement Agent shall:

      (a)   in the case of the Agent and the Registrar, forthwith transfer all
            moneys held by it

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            hereunder and, if applicable, the records referred to in clauses
            29(4) and 30(7) to the successor Agent or Registrar, as the case may
            be, hereunder; and

      (b)   be entitled to the payment by the Issuer (failing which, the
            Guarantor) of its commissions, fees and expenses for the services
            theretofore rendered hereunder in accordance with the terms of
            clause 33.

(10)  Upon its appointment becoming effective, a successor Agent, Registrar,
      Exchange Agent or Settlement Agent and any new Paying Agent or Transfer
      Agent shall, without further act, deed or conveyance, become vested with
      all the authority, rights, powers, trusts, immunities, duties and
      obligations of its predecessor or, as the case may be, a Paying Agent or
      Transfer Agent with like effect as if originally named as Agent,
      Registrar, Exchange Agent or Settlement Agent or a Paying Agent or a
      Transfer Agent hereunder (as the case may be).

39.   MERGER AND CONSOLIDATION

      Any corporation into which the Agent, the Registrar, the Exchange Agent,
      any Paying Agent, Transfer Agent or Settlement Agent may be merged or
      converted, or any corporation with which the Agent, the Registrar, the
      Exchange Agent, or any of the Paying Agents or Transfer Agents or any
      Settlement Agent may be consolidated, or any corporation resulting from
      any merger, conversion or consolidation to which the Agent, the Registrar,
      the Exchange Agent or any of the Paying Agents or Transfer Agents or any
      Settlement Agent shall be a party, or any corporation to which the Agent,
      the Registrar, the Exchange Agent, or any of the Paying Agents or Transfer
      Agent or any Settlement Agent shall sell or otherwise transfer all or
      substantially all the assets of the Agent, the Registrar, the Exchange
      Agent, or any Paying Agent, Transfer Agent or Settlement Agent shall, on
      the date when such merger, conversion, consolidation, sale or transfer
      becomes effective and to the extent permitted by any applicable laws,
      become the successor Agent, Registrar, Exchange Agent, or as the case may
      be, Paying Agent, Transfer Agent or Settlement Agent under this Agreement
      without the execution or filing of any paper or any further act on the
      part of the parties hereto, unless otherwise required by the Issuer or the
      Guarantor, and after the said effective date all references in this
      Agreement to the Agent, the Registrar or the Exchange Agent, or, as the
      case may be, such Paying Agent, Transfer Agent or Settlement Agent shall
      be deemed to be references to such corporation. Written notice of any such
      merger, conversion, consolidation, sale or transfer shall forthwith be
      given to the Issuer and the Guarantor by the Agent or Registrar, the
      Exchange Agent or the relevant Paying Agent, Transfer Agent or Settlement
      Agent, as the case may be.

40.   NOTIFICATION OF CHANGES TO AGENTS

      Following receipt of notice of resignation from the Agent, the Registrar,
      the Exchange Agent or any Paying Agent, Transfer Agent or Settlement Agent
      and forthwith upon appointing a successor Agent, Registrar, Exchange Agent
      or, as the case may be, further or other Paying Agents or Transfer Agents
      or a successor Settlement Agent or on giving notice to terminate the
      appointment of the Agent, the Registrar, the Exchange Agent or, as the
      case may be, Paying Agent, Transfer Agent or Settlement Agent, the Agent
      (on behalf of and at the expense of the Issuer, failing which, the
      Guarantor) shall give or cause to be given not more than 45 days' nor less
      than 30 days' notice thereof to the Noteholders in accordance with the
      Conditions.

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41.   CHANGE OF SPECIFIED OFFICE

      If the Agent, the Registrar, the Exchange Agent or any Paying Agent,
      Transfer Agent or Settlement Agent determines to change its specified
      office it shall (after having, in any such case other than a change of
      specified office within the same city, obtained the prior written approval
      of the Issuer thereto) give to the Issuer, the Guarantor and (if
      applicable) the Agent written notice of such determination giving the
      address of the new specified office which shall be in the same city and
      stating the date on which such change is to take effect, which shall not
      be less than 45 days thereafter. The Agent (on behalf and at the expense
      of the Issuer (failing which, the Guarantor)) shall within 15 days of
      receipt of such notice (unless the appointment of the Agent, the
      Registrar, the Exchange Agent or the relevant Paying Agent, Transfer Agent
      or Settlement Agent as the case may be, is to terminate pursuant to clause
      38 on or prior to the date of such change) give or cause to be given not
      more than 45 days' nor less than 30 days' notice thereof to the
      Noteholders in accordance with the Conditions.

42.   CALCULATION AGENCY AGREEMENT

      Where the Conditions require functions to be carried out by a calculation
      agent, those functions shall be carried out by the Agent unless the Issuer
      and the Guarantor otherwise agree. In such a case, the Issuer and the
      Guarantor may execute a calculation agency agreement with such
      modifications as they shall determine to be required by the Conditions of
      the Notes to be issued in respect of which the calculation agency
      agreement is to be executed with a calculation agent selected between them
      and the relevant Dealer for the relevant Series of Notes.

43.   COMMUNICATIONS

(1)   All communications shall be by telex, fax or letter delivered by hand or
      (but only where specifically provided in the Procedures Memorandum) by
      telephone. Each communication shall be made to the relevant party at the
      telex number, fax number or address or telephone number and, in the case
      of a communication by telex, fax or letter, marked for the attention of,
      or (in the case of a communication by telephone) made to, the person(s)
      from time to time specified in writing by that party to the other for the
      purpose. The initial telephone number, telex number, fax number and
      address of, and person(s) so specified by each party are set out on the
      signature pages hereof.

(2)   A communication shall be deemed received (if by telex) when a confirmed
      answerback is received at the end of the transmission, (if by fax) when an
      acknowledgement of receipt is received, (if by telephone) when made or (if
      by letter) when delivered, in each case in the manner required by this
      clause. Every communication shall be irrevocable save in respect of any
      manifest error therein.

44.   TAXES AND STAMP DUTIES

      The Issuer (failing which, the Guarantor) agrees to pay any and all stamp
      and other documentary taxes or duties which may be payable in connection
      with the execution, delivery, performance and enforcement of this
      Agreement.

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45.   BENEFIT OF AGREEMENT

(1)   This Agreement shall be binding upon and shall inure for the benefit of
      the Issuer, the Guarantor, each Dealer, the Agent, each of the Paying
      Agents and the Transfer Agents, the Exchange Agent, the Registrar, any
      Settlement Agent and their respective successors and permitted assigns (if
      referred individually, the "Assignor" and, if referred collectively, the
      "Assignors").

(2)   Any of the Assignors may only assign or transfer its rights or obligations
      under this Agreement with the prior written consent of the Issuer. If an
      Assignor assigns its rights or transfers its obligations as provided in
      this clause, the relevant assignee or transferee shall be treated as if it
      were a party to this Agreement with effect from the date on which such
      assignment or transfer takes effect; provided that any transfer shall only
      become effective when the Issuer and the Guarantor have received an
      undertaking from the transferee to be bound by this Agreement and to
      perform the obligations transferred to it. Such assignment or transfer
      shall not affect any rights or obligations (including, but not limited to,
      those arising under clauses 5, 7 and 9) which have accrued at the time of
      assignment or transfer or which accrue thereafter in relation to any act
      or omission or alleged act or omission which occurred prior to such
      assignment or transfer.

46.   AMENDMENTS

      This Agreement may be amended in writing by agreement between the parties
      hereto, but without the consent of any Noteholder, Receiptholder,
      Couponholder or Talonholder, for the purpose of curing any ambiguity or of
      curing, correcting or supplementing any defective provision contained
      herein or in any manner which the parties may mutually deem necessary or
      desirable and which shall not be materially prejudicial to the interests
      of the Noteholders, Receiptholders or Couponholders. The Issuer, the
      Guarantor and the Agent may also agree any modification pursuant to
      Condition 16.

47.   GOVERNING LAW AND JURISDICTION

(1)   This Agreement and every agreement for the issue and purchase of Notes as
      referred to in clause 2 shall be governed by, and construed in accordance
      with, the laws of England.

(2)   The Issuer and the Guarantor each irrevocably agrees, for the exclusive
      benefit of the Dealers, the Agent, the Paying Agents, the Transfer Agents,
      the Exchange Agent, the Registrar and any Settlement Agent that the courts
      of England are to have jurisdiction to settle any disputes which may arise
      out of or in connection with this Agreement and that accordingly any suit,
      action or proceedings (together referred to as "Proceedings") arising out
      of or in connection with this Agreement may be brought in such courts.
      Each of the Issuer and the Guarantor hereby irrevocably waives any
      objection which it may have to the laying of the venue of any such
      Proceedings in any such courts and any claim that any such Proceedings
      have been brought in an inconvenient forum and hereby further irrevocably
      agrees that a judgment in any Proceedings brought in the English courts
      shall be conclusive and binding upon it and may be enforced in the courts
      of any other jurisdiction. Nothing contained herein shall limit any right
      to take Proceedings against the Issuer or the Guarantor in any other court
      of competent jurisdiction, nor shall the taking of Proceedings in one or
      more jurisdictions preclude the taking of Proceedings in any other
      jurisdiction, whether concurrently or not. The Issuer and the Guarantor
      each hereby appoints Bear Stearns International Trading Limited at its
      registered office at One Canada Square, London E14 5DB as its agent for
      service of process, and agrees that, in the event of Bear Stearns
      International Trading Limited ceasing so

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      to act or ceasing to be registered in England, it will appoint another
      person as its agent for service of process in England in respect of any
      Proceedings.

48.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 DISAPPLICATION

      A person who is not a party to this Agreement has no right under the
      Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
      Agreement, except and to the extent (if any) that this Agreement expressly
      provides for such Act to apply to any of its terms.

49.   COUNTERPARTS

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

50.   EFFECTIVE DATE

      This Agreement shall apply to issues of Notes made on and after June 28,
      2002 but without prejudice to the rights and obligations of: (i) the
      parties to the Amended and Restated Agreement in relation to issues of
      Notes before June 28, 2002; and (ii) holders of such Notes.

IN WITNESS OF WHICH the parties to this Agreement have executed this Agreement
on the date first above written.

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                                   SCHEDULE 1.

                        TERMS AND CONDITIONS OF THE NOTES

      The following are the terms and conditions of the Notes (the "Terms and
Conditions") which will be incorporated by reference into each global Note and
which will be endorsed on or attached to (or, if agreed between the Issuer and
the relevant Dealer, incorporated by reference into) each definitive Note. The
applicable Pricing Supplement in relation to any Notes supplements the following
Terms and Conditions and may specify other terms and conditions which shall, to
the extent so specified or to the extent inconsistent with the following Terms
and Conditions, replace or modify the following Terms and Conditions for the
purpose of such Notes. The applicable Pricing Supplement will be incorporated
into, or attached to, each Temporary Bearer Global Note, Permanent Bearer Global
Note, Registered Global Note and definitive Note. Reference should be made to
"Form of the Notes" above for a description of the content of Pricing
Supplements which will include the definitions of certain terms used in the
following Terms and Conditions.

      This Note is one of a series of Notes issued by Bear, Stearns Global Asset
Holdings, Ltd. (the "Issuer") pursuant to, and with the benefit of, an amended
and restated Note Issuance Agreement (the "Note Issuance Agreement") dated June
28, 2002 made between, inter alios, the Issuer, The Bear Stearns Companies Inc.
(the "Guarantor"), JPMorgan Chase Bank as issuing and principal paying agent and
agent bank (the "Agent", which expression shall include any successor agent
specified in the pricing supplement relating to the Notes (the "Pricing
Supplement") or otherwise appointed pursuant to the Note Issuance Agreement),
the other paying agents named therein (together with the Agent, the "Paying
Agents", which expression shall include any additional or successor paying
agents), JPMorgan Chase Bank as registrar (the "Registrar", which expression
shall include any successor registrar), the transfer agents named therein (the
"Transfer Agents", which expression shall include any additional or successor
transfer agents) and JPMorgan Chase Bank as exchange agent (the "Exchange
Agent", which expression shall include any successor exchange agent), as may be
further amended and/or supplemented from time to time. References herein to the
"Notes" shall be references to the Notes of this Series (as defined below) and
shall mean: (i) in relation to any Notes represented by a global Note, units of
the lowest Specified Denomination in the Specified Currency; (ii) definitive
Bearer Notes issued in exchange (or part exchange) for a global Note; (iii)
definitive Registered Notes; and (iv) any global Note.

      Interest bearing definitive Bearer Notes (unless otherwise indicated in
the applicable Pricing Supplement) have interest coupons ("Coupons") and, if
indicated in the applicable Pricing Supplement, talons for further Coupons
("Talons") attached on issue. Any reference herein to Coupons or coupons shall,
unless the context otherwise requires, be deemed to include a reference to
Talons or talons. Definitive Bearer Notes repayable in instalments have receipts
("Receipts") for the payment of the instalments of principal (other than the
final instalment) attached on issue. Registered Notes and global Notes do not
have Receipts or Coupons attached on issue.

      The Pricing Supplement for this Note is attached hereto or (to the extent
relevant) incorporated herein and supplements these Terms and Conditions and may
specify other terms and conditions which shall, to the extent so specified or to
the extent inconsistent with these Terms and Conditions, replace or modify these
Terms and Conditions for the purposes of this Note. References herein to the
"applicable Pricing Supplement" are to the Pricing Supplement attached hereto or
incorporated herein.

      As used herein, "Noteholders" means holders of the Notes (save that, in
relation to any Notes represented by a global Note, such expression shall be
construed as provided below), "Receiptholders" means holders of the Receipts,
"Couponholders" means holders of the Coupons, "Tranche" means all Notes with the
same Issue Date and which are the subject of the same Pricing Supplement and
"Series" means a Tranche of Notes together with any further Tranche or Tranches
of Notes which are: (i) expressed to be consolidated and form a single series;
and (ii) are identical in all

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respects (including as to listing) except for their respective Issue Dates,
Interest Commencement Dates and/or Issue Prices.

      The holders of Bearer Notes, the Receiptholders and the Couponholders are
entitled to the benefit of a deed of covenant (the "Deed of Covenant") dated
June 28, 2002 and made by the Issuer and the Noteholders, the Receiptholders and
the Couponholders are entitled to the benefit of a deed of guarantee (the
"Guarantee") dated June 29, 2001 and executed by the Guarantor. The original of
the Deed of Covenant is held by a common depositary on behalf of Euroclear (as
defined below) and Clearstream, Luxembourg (as defined below) and the original
of the Guarantee is held by the Agent at its specified office for the time
being.

      Copies of the Note Issuance Agreement, the Deed of Covenant, the Guarantee
and the Pricing Supplement applicable to the Notes are available at the
specified office of each of the Paying Agents, the Registrar and the Transfer
Agents save that a Pricing Supplement relating to a Note not listed on any stock
exchange will only be available for inspection by the relevant Dealer specified
in the applicable Pricing Supplement, the Registrar, any Paying Agent or any
Transfer Agent and, upon proof satisfactory to the Registrar or the relevant
Paying Agent or Transfer Agent, as the case may be, as to identity, by the
holder of any Note to which such Pricing Supplement relates. The Noteholders,
the Receiptholders and the Couponholders are deemed to have notice of, and are
entitled to the benefit of, all the provisions of the Note Issuance Agreement
and the applicable Pricing Supplement which are binding on them.

      Words and expressions defined in the Note Issuance Agreement or used in
the applicable Pricing Supplement shall have the same meanings where used in
these Terms and Conditions unless the context otherwise requires or unless
otherwise stated and provided that, in the event of inconsistency between the
Note Issuance Agreement and the applicable Pricing Supplement, the applicable
Pricing Supplement will prevail.

1. FORM, DENOMINATION AND TITLE

      The Notes may be in bearer form ("Bearer Notes") and/or in registered form
("Registered Notes") and, in the case of definitive Notes, will be serially
numbered, in the Specified Currency and the Specified Denomination(s). Save as
provided below in Conditions 4 and 12, Notes of one Specified Denomination may
not be exchanged for Notes of another Specified Denomination.

      This Note is a Fixed Rate Note, a Floating Rate Note, a Zero Coupon Note,
an Indexed Interest Note (where payment in respect of interest is linked to an
index and/or a formula), an Indexed Redemption Amount Note (where payment in
respect of principal is linked to an index and/or a formula), a Linked Note
(where payment in respect of principal and/or interest is linked to an
underlying equity, bond, other security or such other asset as may be specified
in the applicable Pricing Supplement (the "Underlying Securities")), a Dual
Currency Note or a Partly Paid Note or any appropriate combination of any of the
foregoing, depending upon the Interest/Payment Basis shown in the applicable
Pricing Supplement. It is also a Linked Note, a Dual Currency Note, a Partly
Paid Note, an Indexed Interest Note and an Indexed Redemption Amount Note if, in
each case, the applicable Pricing Supplement so indicates and, in such case, the
appropriate provisions of these Terms and Conditions will apply accordingly.

      Bearer Notes in definitive form are issued with Coupons and (if
applicable) Receipts and Talons attached, unless they are Zero Coupon Notes in
which case references to interest and Coupons and Couponholders in these Terms
and Conditions are not applicable.

      Subject as set out below, title to Bearer Notes, Receipts and Coupons will
pass by delivery. Title to Registered Notes will pass upon registration of
transfers in the books of the Registrar in New York City.

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      Subject as set out below, the Issuer, the Guarantor, the Agent, any Paying
Agent, the Registrar, the Exchange Agent and any Transfer Agent may deem and
treat the bearer of any Bearer Note, Receipt or Coupon and any person in whose
name a Registered Note is registered as the absolute owner thereof (whether or
not overdue and notwithstanding any notice of ownership or writing thereon or
notice of any previous loss or theft thereof) for all purposes but, in the case
of any global Note, without prejudice to the provisions set out in the next
paragraph.

      For so long as any of the Notes is represented by a bearer global Note
held by a common depositary on behalf of Euroclear Bank S.A./N.V., as operator
of the Euroclear System ("Euroclear") and/or Clearstream Banking, societe
anonyme ("Clearstream, Luxembourg") or for so long as The Depository Trust
Company ("DTC") or its nominee is the registered holder of a Registered Global
Note, each person who is for the time being shown in the records of Euroclear or
Clearstream, Luxembourg or, as the case may be, DTC as entitled to a particular
nominal amount of Notes (in which regard any certificate or other document
issued by Euroclear, Clearstream, Luxembourg or DTC as to the nominal amount of
Notes standing to the account of any person shall be conclusive and binding for
all purposes save in the case of manifest error) shall be deemed to be the
holder of such nominal amount of Notes for all purposes other than with respect
to the payment of principal or interest on such Notes, for which purpose such
common depositary or, as the case may be, DTC or its nominee shall be deemed to
be the holder of such nominal amount of Notes in accordance with and subject to
the terms of the relevant global Note (and the expressions "Noteholder" and
"holder of Notes" and related expressions shall be construed accordingly). Notes
which are represented by a global Note will be transferable only in accordance
with the rules and procedures for the time being of Euroclear, Clearstream,
Luxembourg and DTC, as the case may be.

      References herein to DTC, Euroclear and/or Clearstream, Luxembourg shall,
whenever the context so permits, be deemed to include a reference to any
additional or alternative clearing system approved by the Issuer, the Guarantor
and the Agent and specified in the applicable Pricing Supplement.

2. STATUS OF THE NOTES AND GUARANTEE

      (a) The Notes and the relative Receipts and Coupons are direct,
unconditional, unsubordinated and (subject to the provisions of Condition 3)
unsecured obligations of the Issuer and rank and will rank pari passu among
themselves and (subject as aforesaid and to certain statutory exceptions)
equally with all other unsecured obligations (other than subordinated
obligations, if any) of the Issuer from time to time outstanding.

      (b) The payment of principal of, and interest on, and the payment and/or
delivery of any Securities Amount in respect of, the Notes and all other moneys
payable by the Issuer in respect of the Notes have been unconditionally and
irrevocably guaranteed by the Guarantor pursuant to the Guarantee. The
obligations of the Guarantor under the Guarantee are direct, unconditional,
unsubordinated and (subject to the provisions of Condition 3) unsecured
obligations of the Guarantor and rank and will rank pari passu among themselves
and (subject as aforesaid and to certain statutory exceptions) equally with all
other unsecured obligations (other than subordinated obligations, if any) of the
Guarantor from time to time outstanding.

3. NEGATIVE PLEDGE

      (a) So long as any of the Notes remains outstanding (as defined in the
Note Issuance Agreement), neither the Issuer nor any of the Restricted
Subsidiaries (as defined below) shall create or have outstanding any
indebtedness for borrowed money secured by a mortgage, charge, pledge, lien or
other security interest upon any shares of Voting Stock (as defined below) of
any Restricted Subsidiary without effectively providing that the Notes will be
secured equally and rateably with such secured indebtedness or such other
security, guarantee or support is provided for the Notes as shall be

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approved by an Extraordinary Resolution (as defined in the Note Issuance
Agreement) of the Noteholders.

      (b) So long as any of the Notes remains outstanding, the Guarantor shall
not create or have outstanding any indebtedness for borrowed money secured by a
mortgage, charge, pledge, lien or other security interest upon any shares of
Voting Stock of any Restricted Subsidiary without effectively providing that all
amounts payable or deliverable under the Guarantee will be secured equally and
rateably with such secured indebtedness or such other security, guarantee or
support is provided for all amounts payable or deliverable under the Guarantee
as shall be approved by an Extraordinary Resolution of the Noteholders.

      For the purposes of these Terms and Conditions:

      "Restricted Subsidiary" means: (a) Bear, Stearns & Co. Inc.; (b) Custodial
Trust Company; (c) Bear, Stearns Securities Corp.; (d) Bear, Stearns
International Limited; (e) Bear Stearns Bank plc; (f) any other Subsidiary of
the Guarantor which owns, directly or indirectly, any of the common stock of a
Restricted Subsidiary; and (g) any other Subsidiary with which a Restricted
Subsidiary is merged or consolidated or which acquires or succeeds to a
significant portion of the business, properties or assets of a Restricted
Subsidiary;

      "Subsidiary" means any company of which at the time of determination the
Guarantor and/or one or more Subsidiaries owns or controls, directly or
indirectly, more than 50 per cent. of the shares of Voting Stock; and

      "Voting Stock" means stock of the class or classes having general voting
power under ordinary circumstances to elect at least a majority of the board of
directors, managers or trustees of such company provided that, for the purposes
of these Terms and Conditions, stock which carries only the right to vote
conditionally on the happening of an event shall not be considered voting stock
whether or not such event shall have happened.

4.    REDENOMINATION

      (a) Redenomination

      Where Redenomination is specified in the applicable Pricing Supplement as
being applicable, the Issuer may, without the consent of the Noteholders, the
Receiptholders and the Couponholders, on giving prior notice to the Agent,
Euroclear and Clearstream, Luxembourg and at least 30 days' prior notice to the
Noteholders in accordance with Condition 15, elect that, with effect from the
Redenomination Date specified in the notice, the Notes shall be redenominated in
euro.

      The election will have effect as follows:

      (i)   the Notes and the Receipts shall be deemed to be redenominated in
            euro in the denomination of euro 0.01 with a nominal amount for each
            Note and Receipt equal to the nominal amount of that Note or Receipt
            in the Specified Currency, converted into euro at the Established
            Rate, provided that, if the Issuer determines, after consultation
            with the Agent, that the then market practice in respect of the
            redenomination in euro of internationally offered securities is
            different from the provisions specified above, such provisions shall
            be deemed to be amended so as to comply with such market practice
            and the Issuer shall promptly notify the Noteholders, the stock
            exchange (if any) on which the Notes may be listed and the Agent of
            such deemed amendments;

      (ii)  save to the extent that an Exchange Notice has been given in
            accordance with paragraph (iv) below, the amount of interest due in
            respect of the Notes will be calculated by reference to the
            aggregate principal amount of Notes presented (or, as the case may
            be, in respect of which Coupons are presented) for payment by the
            relevant holder and the amount of such payment shall be rounded down
            to the nearest euro 0.01;

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      (iii) if definitive Notes are required to be issued after the
            Redenomination Date, they shall be issued at the expense of the
            Issuer in the denominations of euro 1,000, euro 10,000, euro 100,000
            and (but only to the extent of any remaining amounts less than euro
            1,000 or such smaller denominations as the Agent may approve) euro
            0.01 and such other denominations as the Agent shall determine and
            notify to the Noteholders;

      (iv)  if issued prior to the Redenomination Date, all unmatured Coupons
            denominated in the Specified Currency (whether or not attached to
            the Notes) will become void with effect from the date on which the
            Issuer gives notice (the "Exchange Notice") that replacement
            euro-denominated Notes, Receipts and Coupons are available for
            exchange (provided that such securities are so available) and no
            payments will be made in respect of them. The payment obligations
            contained in any Notes and Receipts so issued will also become void
            on that date although those Notes and Receipts will continue to
            constitute valid exchange obligations of the Issuer. New
            euro-denominated Notes, Receipts and Coupons will be issued in
            exchange for Notes, Receipts and Coupons denominated in the
            Specified Currency in such manner as the Agent may specify and as
            shall be notified to the Noteholders in the Exchange Notice. No
            Exchange Notice may be given less than 15 days prior to any date for
            payment of principal or interest on the Notes;

      (v)   after the Redenomination Date, all payments in respect of the Notes,
            the Receipts and the Coupons, other than payments of interest in
            respect of periods commencing before the Redenomination Date, will
            be made solely in euro as though references in the Notes to the
            Specified Currency were to euro. Payments will be made in euro by
            credit or transfer to a euro account (or any other account to which
            euro may be credited or transferred) specified by the payee or, at
            the option of the payee, by a euro cheque, provided that in relation
            to Bearer Notes, no payments shall be made by cheque and all
            payments shall be made by transfer to a euro account maintained by
            the payee with a bank outside the United States and outside of U.S.
            Possessions;

      (vi)  if the Notes are Floating Rate Notes, the applicable Pricing
            Supplement specifies any relevant changes to the provisions relating
            to interest; and

      (vii) such other changes shall be made to these Terms and Conditions
            and/or the Note Issuance Agreement as the Issuer may decide, after
            consultation with the Agent and as may be specified in the notice,
            to conform them to conventions then applicable to instruments
            denominated in euro. Any such other changes will not take effect
            until after they have been notified to the Noteholders in accordance
            with Condition 15.

(b)   Definitions

      In these Terms and Conditions, the following expressions have the
following meanings:

      "Established Rate" means the rate for the conversion of the Specified
Currency (including compliance with rules relating to roundings in accordance
with applicable European Union regulations) into euro established by the Council
of the European Union pursuant to Article 123 of the Treaty;

      "euro" means the currency introduced at the start of the third stage of
European economic and monetary union pursuant to the Treaty;

      "Redenomination Date" means the date (being, in the case of interest
bearing Notes, a date for payment of interest) specified as such by the Issuer
in the notice given to the Noteholders pursuant to paragraph (a) above and which
falls on or after the date on which the country of the Specified Currency first
participates in the third stage of European economic and monetary union or first
participates in European and economic monetary union in a manner with similar
effect to such third stage;

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      "TARGET system" means the Trans-European Automated Real-Time Gross
Settlement Express Transfer (TARGET) System;

      "Treaty" means the Treaty establishing the European Community, as amended;
and

      "U.S. Possessions" means Puerto Rico, the U.S. Virgin Islands, Guam,
American Samoa, Wake Island and Northern Mariana Islands.

5.    INTEREST

(a)   Interest on Fixed Rate Notes

      Each Fixed Rate Note bears interest on its nominal amount (or, if it is a
Partly Paid Note, the amount paid up) from (and including) the Interest
Commencement Date at the rate(s) per annum equal to the Fixed Rate(s) of
Interest so specified, payable in arrear on the Fixed Interest Date(s) in each
year and on the Maturity Date so specified if that does not fall on a Fixed
Interest Date. The first payment of interest will be made on the Fixed Interest
Date next following the Interest Commencement Date and, if the first anniversary
of the Interest Commencement Date is not a Fixed Interest Date, will amount to
the Initial Broken Amount. If the Maturity Date is not a Fixed Interest Date,
interest from (and including) the preceding Fixed Interest Date (or the Interest
Commencement Date, as the case may be) to (but excluding) the Maturity Date will
amount to the Final Broken Amount.

      If interest is required to be calculated for a period ending other than on
a Fixed Interest Date, such interest shall be calculated by applying the Fixed
Rate of Interest to each Specified Denomination, multiplying such sum by the
applicable Day Count Fraction, and rounding the resultant figure to the nearest
sub-unit of the relevant Specified Currency, half of any such sub-unit being
rounded upwards or otherwise in accordance with applicable market convention.

      "Day Count Fraction" means, in respect of the calculation of an amount of
interest in accordance with this Condition 5(a):

      (i)   if "Actual/Actual (ISMA)" is specified in the applicable Pricing
            Supplement:

            (a)   in the case of Notes where the number of days in the relevant
                  period from (and including) the most recent Determination Date
                  (or, if none, the Interest Commencement Date) to (but
                  excluding) the relevant payment date (the "Accrual Period") is
                  equal to or shorter than the Determination Period during which
                  the Accrual Period ends, the number of days in such Accrual
                  Period divided by the product of (1) the number of days in
                  such Determination Period and (2) the number of Determination
                  Dates that would occur in one calendar year; or

            (b)   in the case of Notes where the Accrual Period is longer than
                  the Determination Period during which the Accrual Period ends,
                  the sum of:

                  (1)   the number of days in such Accrual Period falling in the
                        Determination Period in which the Accrual Period begins
                        divided by the product of (x) the number of days in such
                        Determination Period and (y) the number of Determination
                        Dates that would occur in one calendar year; and

                  (2)   the number of days in such Accrual Period falling in the
                        next Determination Period divided by the product of (x)
                        the number of days in such Determination Period and (y)
                        the number of Determination Dates that would occur in
                        one calendar year; and

      (ii)  if "30/360" is specified in the applicable Pricing Supplement, the
            number of days in the period from (and including) the most recent
            Fixed Interest Date (or, if none, the Interest Commencement Date) to
            (but excluding) the relevant payment date (such number of days

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            being calculated on the basis of 12 30-day months) divided by 360.

In these Terms and Conditions:

      "Determination Period" means each period from (and including) a
Determination Date to (but excluding) the next Determination Date (including,
where either the Interest Commencement Date or the final Fixed Interest Date is
not a Determination Date, the period commencing on the first Determination Date
prior to, and ending on the first Determination Date falling after, such date);
and

      "sub-unit" means, with respect to any currency other than euro, the lowest
amount of such currency that is available as legal tender in the country of such
currency and, with respect to euro, one cent.

(b)   Interest on Floating Rate Notes, Indexed Interest Notes and Linked Notes

(i)    Interest Payment Dates

      Each Floating Rate Note, Indexed Interest Note and, where applicable,
Linked Note bears interest on its outstanding nominal amount (or, if it is a
Partly Paid Note, the amount paid up) from (and including) the Interest
Commencement Date and such interest will be payable in arrear on either:

      (A)   the Interest Payment Date(s) specified in the applicable Pricing
            Supplement (each an "Interest Payment Date") in each year (the
            period from and including the Interest Commencement Date to but
            excluding the first Interest Payment Date and each successive period
            from and including an Interest Payment Date to but excluding the
            next Interest Payment Date each being an "Interest Period"); or

      (B)   if no Interest Payment Date(s) is/are specified in the applicable
            Pricing Supplement, each date which falls the number of months or
            other period specified as the Interest Period in the applicable
            Pricing Supplement after the preceding Interest Payment Date or, in
            the case of the first Interest Payment Date, after the Interest
            Commencement Date.

                  If a business day convention is specified in the applicable
                        Pricing Supplement and if any Interest Payment Date (or
                        any other date) would otherwise fall on a day which is
                        not a Business Day, then, if the business day convention
                        specified is:

      (1)   the Floating Rate Convention and no express Interest Payment Date(s)
            is/are specified in the applicable Pricing Supplement, such Interest
            Payment Date shall be postponed to the next day which is a Business
            Day unless it would thereby fall into the next calendar month, in
            which event (I) such Interest Payment Date (or other date) shall be
            brought forward to the immediately preceding Business Day and (II)
            each subsequent Interest Payment Date (or other date) shall be the
            last Business Day in the month which falls the number of months or
            other period specified as the Interest Period in the applicable
            Pricing Supplement after the preceding applicable Interest Payment
            Date occurred;

      (2)   the Following Business Day Convention, such Interest Payment Date
            (or other date) shall be postponed to the next day which is a
            Business Day;

      (3)   the Modified Following Business Day Convention, such Interest
            Payment Date (or other date) shall be postponed to the next day
            which is a Business Day unless it would thereby fall into the next
            calendar month, in which event such Interest Payment Date (or other
            date) shall be brought forward to the immediately preceding Business
            Day; or

      (4)   the Preceding Business Day Convention, such Interest Payment Date
            (or other date) shall be brought forward to the immediately
            preceding Business Day.

      In this Condition, "Business Day" means a day which is both:

      (I)   a day on which commercial banks and foreign exchange markets settle
            payments and are

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            open for general business (including dealings in foreign exchange
            and foreign currency deposits) in London; and

      (II)  either (1) in relation to interest payable in a Specified Currency
            other than euro, a day on which commercial banks and foreign
            exchange markets settle payments and are open for general business
            (including dealings in foreign exchange and foreign currency
            deposits) in the principal financial centre of the country of the
            relevant Specified Currency (if other than London and which, if the
            Specified Currency is Australian dollars or New Zealand dollars,
            shall be Sydney and Auckland respectively) or (2) in relation to any
            interest payable in euro, a day on which the TARGET System is open.

(ii)    Rate of Interest

      The Rate of Interest payable from time to time in respect of Floating Rate
Notes, Indexed Interest Notes and, where applicable, Linked Notes will be
determined in the manner specified in the applicable Pricing Supplement.

(iii)    ISDA Determination

      Where ISDA Determination is specified in the applicable Pricing Supplement
as the manner in which the Rate of Interest is to be determined, the Rate of
Interest for each Interest Period will be the relevant ISDA Rate plus or minus
(as indicated in the applicable Pricing Supplement) the Margin (if any). For the
purposes of this sub-paragraph (iii), "ISDA Rate" for an Interest Period means a
rate equal to the Floating Rate that would be determined by the Agent or other
person specified in the applicable Pricing Supplement under an interest rate
swap transaction if the Agent or that other person were acting as Calculation
Agent for that swap transaction under the terms of an agreement incorporating
the 2000 ISDA Definitions as published by the International Swaps and
Derivatives Association, Inc. as amended and updated as at the Issue Date of the
first Tranche of the Notes (the "ISDA Definitions") and under which:

      (A)   the Floating Rate Option is as specified in the applicable Pricing
            Supplement;

      (B)   the Designated Maturity is a period specified in the applicable
            Pricing Supplement; and

      (C)   the relevant Reset Date is either: (i) if the applicable Floating
            Rate Option is based on the London inter-bank offered rate (LIBOR)
            or Euro-Zone inter-bank offered rate (EURIBOR) for a currency, the
            first day of that Interest Period or (ii) in any other case, as
            specified in the applicable Pricing Supplement.

      For the purposes of this Condition 5(b)(iii), "Floating Rate",
"Calculation Agent", "Floating Rate Option", "Designated Maturity" and "Reset
Date" have the meanings given to those terms in the ISDA Definitions.

      When this Condition 5(b)(iii) applies, in respect of each relevant
Interest Period:

      (A)   the Rate of Interest for such Interest Period will be the ISDA Rate
            plus or minus the Margin (if any) determined by the Agent in
            accordance with this sub-paragraph (iii); and

      (B)   the Agent will be deemed to have discharged its obligations under
            Condition 5(b)(vii) in respect of the determination of the Rate of
            Interest, if it has determined the Rate of Interest in respect of
            such Interest Period in the manner provided in this sub-paragraph
            (iii).

(iv)  Screen Rate Determination

      Where Screen Rate Determination is specified in the applicable Pricing
Supplement as the manner in which the Rate of Interest is to be determined, the
Rate of Interest for each Interest Period will, subject as provided below, be
either:

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      (A)   the offered quotation (if there is only one quotation on the
            Relevant Screen Page); or

      (B)   the arithmetic mean (rounded if necessary to the fifth decimal
            place, with 0.000005 being rounded upwards) of the offered
            quotations,

(expressed as a percentage rate per annum) for deposits in the Specified
Currency for the relevant Interest Period which appears or appear, as the case
may be, on the Relevant Screen Page as at 11.00 a.m. (London time, in the case
of LIBOR, or Brussels time, in the case of EURIBOR) on the Interest
Determination Date in question plus or minus (as indicated in the applicable
Pricing Supplement) the Margin (if any), all as determined by the Agent. If five
or more such offered quotations are available on the Relevant Screen Page, the
highest (or, if there is more than one such highest quotation, one only of such
quotations) and the lowest (or, if there is more than one such lowest quotation,
one only of such quotations) shall be disregarded by the Agent for the purpose
of determining the arithmetic mean (rounded as provided above) of such offered
quotations.

      The Note Issuance Agreement contains provisions for determining the Rate
of Interest in the event that the Relevant Screen Page is not available or if,
in the case of (A) above, no such quotation appears or, in the case of (B)
above, fewer than three such offered quotations appear, in each case as at the
time specified in the preceding paragraph. Alternatively, provisions dealing
with this may be included in the applicable Pricing Supplement.

      If the Reference Rate from time to time in respect of Floating Rate Notes
is specified in the applicable Pricing Supplement as being other than LIBOR or
EURIBOR, the Rate of Interest in respect of such Notes will be determined as
provided in the applicable Pricing Supplement.

(v)   Other determination

      Interest may also be payable from time to time in respect of Floating Rate
Notes, Indexed Interest Notes and, where applicable, Linked Notes in accordance
with such other manner of determination as may be specified in the applicable
Pricing Supplement.

(vi)  Minimum and/or maximum Rate of Interest

      If the applicable Pricing Supplement specifies a minimum Rate of Interest
for any Interest Period, then, in the event that the Rate of Interest in respect
of such Interest Period determined in accordance with the above provisions is
less than such minimum Rate of Interest, the Rate of Interest for such Interest
Period shall be such minimum Rate of Interest. If the applicable Pricing
Supplement specifies a maximum Rate of Interest for any Interest Period, then,
in the event that the Rate of Interest in respect of such Interest Period
determined in accordance with the above provisions is greater than such maximum
Rate of Interest, the Rate of Interest for such Interest Period shall be such
maximum Rate of Interest.

(vii) Determination of Rate of Interest and calculation of Interest Amounts

      The Agent or, where the Pricing Supplement specifies another person to act
as calculation agent, such person (the "Calculation Agent"), in the case of
Floating Rate Notes, Indexed Interest Notes and, where applicable, Linked Notes
will, at or as soon as practicable after each time at which the Rate of Interest
is to be determined, determine the Rate of Interest and calculate the amount of
interest (the "Interest Amount") payable on the Floating Rate Notes, Indexed
Interest Notes or, as the case may be, Linked Notes in respect of each Specified
Denomination for the relevant Interest Period. In the case of Indexed Interest
Notes and, where applicable, Linked Notes, the Calculation Agent will notify the
Agent of the Rate of Interest and the Interest Amount for the relevant Interest
Period, as soon as practicable after determining and calculating the same. Each
Interest Amount shall be calculated by applying the Rate of Interest to the
Specified Denomination, multiplying such sum by the actual number of days in the
Interest Period concerned divided by 360, or such other denominator determined
by the Agent to be customary for such calculation (which in the case of Notes
denominated in euro, Sterling or Hong Kong dollars shall be 365/366), and
rounding the resultant

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figure to the nearest sub-unit of the relevant Specified Currency, half of any
such sub-unit being rounded upwards or otherwise in accordance with applicable
market convention.

(viii) Notification of Rate of Interest and Interest Amount

      The Agent will cause the Rate of Interest and each Interest Amount for
each Interest Period and the relevant Interest Payment Date to be notified to
the Issuer, the Guarantor and any stock exchange on which the relevant Floating
Rate Notes, Indexed Interest Notes or, where applicable, Linked Notes are for
the time being listed or other relevant authority and notice thereof to be
published in accordance with Condition 15 as soon as possible after their
determination but in no event later than the fourth London Business Day
thereafter. Each Interest Amount and Interest Payment Date so notified may
subsequently be amended (or appropriate alternative arrangements made by way of
adjustment) in the event of an extension or shortening of the Interest Period.
Any such amendment will be promptly notified to each stock exchange on which the
relevant Floating Rate Notes, Indexed Interest Notes or, where applicable,
Linked Notes are for the time being listed or other relevant authority and to
the Noteholders in accordance with Condition 15. For the purposes of this
paragraph "London Business Day" means a day (other than a Saturday or a Sunday)
on which commercial banks and foreign exchange markets settle payments in
London.

(ix)  Certificates to be final

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

(c)   Dual Currency Notes

      The rate or amount of interest payable in respect of a Dual Currency Note
shall be determined in the manner specified in the applicable Pricing
Supplement.

(d)   Partly Paid Notes

      In the case of Partly Paid Notes (other than Partly Paid Notes which are
Zero Coupon Notes), interest will accrue as aforesaid on the paid-up nominal
amount of such Notes and otherwise as specified in the applicable Pricing
Supplement.

(e)   Accrual of Interest

      Each Note (or, in the case of the redemption of part only of a Note, that
part only of such Note) will cease to bear interest (if any) from the due date
for its redemption unless, upon due presentation thereof, payment of principal
or the payment and/or delivery of the Securities Amount (where applicable) is
improperly withheld or refused. In such event, interest will continue to accrue
as provided in the applicable Pricing Supplement or otherwise until whichever is
the earlier of:

      (A)   the date on which all amounts due in respect of such Note have been
            paid or (if applicable) the Securities Amount has been paid and/or
            delivered; and

      (B)   five days after the date on which the full amount of the moneys
            payable or (if applicable) the Securities Amount payable and/or
            deliverable has been received by the Agent and/or the Settlement
            Agent (as defined in Condition 13) (if applicable) and notice to
            that effect has been given to the Noteholders in accordance with
            Condition 15.

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6.    PAYMENTS AND DELIVERIES

      For the purposes of this Condition 6, references to payment or repayment
(as the case may be) of principal and/or interest and other similar expressions
will, where the context so admits, be deemed also to refer to delivery and
payment of any Securities Amount(s).

(a)   Method of Payment and Delivery

      Subject as provided below and, in the case of Linked Notes, subject also
as provided in Condition 20:

      (i)   payments in a Specified Currency other than euro will be made by
            transfer to an account in the relevant Specified Currency (which, in
            the case of a payment in Japanese yen to a non-resident of Japan,
            shall be a non-resident account) maintained by the payee with, or by
            a cheque in such Specified Currency drawn on, a bank in the
            principal financial centre of the country of such Specified Currency
            (which, if the Specified Currency is Australian dollars or New
            Zealand dollars, shall be Sydney and Auckland respectively),
            provided that in relation to Bearer Notes, no payments shall be made
            by cheque and all payments shall be made by transfer to an account
            maintained by the payee with a bank outside the United States and
            outside of U.S. Possessions;

      (ii)  payments in euro will be made by credit or transfer to a euro
            account (or any other account to which euro may be credited or
            transferred) specified by the payee or, at the option of the payee,
            by a euro cheque, provided that in relation to Bearer Notes, no
            payments shall be made by cheque and all payments shall be made by
            transfer to an account maintained by the payee with a bank outside
            the United States and outside of U.S. Possessions;

      (iii) in the case of Linked Notes which provide for settlement by way of
            delivery, on the due date for redemption, the Issuer shall deliver,
            or procure the delivery of, the documents evidencing the number of,
            or constituting the, Underlying Securities plus/minus any amount due
            to/from the Noteholder deliverable in respect of each Note (the
            "Securities Amount") to or to the order of the Noteholder in
            accordance with the instructions of the Noteholder contained in the
            Transfer Notice (as defined below). The Securities Amount shall be
            evidenced in the manner described in the applicable Pricing
            Supplement;

      (iv)  in the case of Linked Notes which provide the Issuer with an option
            to vary settlement, details of how this will operate and of any
            relevant notice periods will be set out in the applicable Pricing
            Supplement;

      (v)   in the event that the holder of a Linked Note (which may settle by
            delivery of the Underlying Securities) is not (in the opinion of the
            Agent or the Settlement Agent, as the case may be) able, for any
            reason, to take delivery of, or become the holder of, the Underlying
            Securities, or if a Settlement Disruption Event (as defined in
            Condition 20(a)) has occurred and is continuing for five consecutive
            business days (or as may be otherwise specified in the applicable
            Pricing Supplement), the Issuer shall, provided that it would not in
            its opinion be prejudiced thereby, agree to vary the method of
            settlement in the manner specified in the applicable Pricing
            Supplement or (in the absence thereof) as the Settlement Agent may
            in its sole and absolute discretion determine; and

      (vi)  in respect of payments on Registered Notes, each holder and
            beneficial owner of such a Registered Note must provide a properly
            completed and executed IRS Form W-8BEN or IRS Form W-9, as
            applicable (or such successor form as may be required) prior to
            payment and from time to time thereafter as required or as requested
            or must otherwise establish an exemption from U.S. backup
            withholding and information reporting.

      Payments will be subject in all cases to any fiscal or other laws and
regulations applicable thereto in the place of payment, but without prejudice to
the provisions of Condition 8.

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(b)   Presentation of Notes, Receipts and Coupons

      Payments of principal in respect of definitive Bearer Notes will (subject
as provided below) be made in the manner provided in paragraph (a) only against
presentation and surrender (or, in the case of part payment only of any sum due,
endorsement) of definitive Bearer Notes, and payments of interest in respect of
definitive Bearer Notes will (subject as provided below) be made as aforesaid
only against presentation and surrender (or, in the case of part payment only of
any sum due, endorsement) of Coupons, in each case at the specified office of
any Paying Agent outside the United States (which expression, as used in this
Condition 6 and in Conditions 4, 7, 8 and 11, means the United States of America
(including the States and the District of Columbia, its territories, its
possessions and other areas subject to its jurisdiction)).

      In respect of Bearer Notes in definitive form, payments of instalments of
principal (if any), other than the final instalment, will (subject as provided
below) be made in the manner provided in paragraph (a) against presentation and
surrender (or, in the case of part payment only of any sum due, endorsement) of
the relevant Receipt. Payment of the final instalment will be made in the manner
provided in paragraph (a) against presentation and surrender (or, in the case of
part payment only of any sum due, endorsement) of the relevant Note. Each
Receipt must be presented for payment of the relevant instalment together with
the definitive Bearer Note to which it appertains. Receipts presented without
the definitive Bearer Notes to which they appertain do not constitute valid
obligations of the Issuer. Upon the date on which any definitive Bearer Note
becomes due and repayable, unmatured Receipts (if any) relating thereto (whether
or not attached) shall become void and no payment shall be made in respect
thereof.

      Fixed Rate Notes in definitive bearer form (other than Dual Currency Notes
or Indexed Redemption Amount Notes) should be presented for payment together
with all unmatured Coupons appertaining thereto (which expression shall for this
purpose include Coupons falling to be issued on exchange of matured Talons),
failing which the amount of any missing unmatured Coupon (or, in the case of
payment not being made in full, the same proportion of the amount of such
missing unmatured Coupon as the sum so paid bears to the sum due) will be
deducted from the sum due for payment. Each amount of principal so deducted will
be paid in the manner mentioned above against surrender of the relative missing
Coupon at any time before the expiry of ten years after the Relevant Date (as
defined in Condition 9) in respect of such principal (whether or not such Coupon
would otherwise have become void under Condition 9) or, if later, five years
from the date on which such Coupon would otherwise have become due. Upon any
Fixed Rate Note in definitive bearer form becoming due and repayable prior to
its Maturity Date, all unmatured Talons (if any) appertaining thereto will
become void and no further Coupons will be issued in respect thereof.

      Upon the date on which any Floating Rate Note, Dual Currency Note or
Indexed Note in definitive bearer form becomes due and repayable, unmatured
Coupons and Talons (if any) relating thereto (whether or not attached) shall
become void and no payment or, as the case may be, exchange for further Coupons
shall be made in respect thereof.

      If the due date for redemption of any definitive Bearer Note is not a
Fixed Interest Date or an Interest Payment Date, interest (if any) accrued in
respect of such Note from (and including) the preceding Fixed Interest Date or
Interest Payment Date or, as the case may be, the Interest Commencement Date
shall be payable only against surrender of the relevant definitive Bearer Note.

      Payments of principal and interest (if any) in respect of Notes
represented by any bearer global Note will (subject as provided below) be made
in the manner specified in paragraph (a) and otherwise in the manner specified
in the relevant global Note against presentation or surrender, as the case may
be, of such bearer global Note at the specified office of any Paying Agent
outside the United States. A record of each payment made against presentation or
surrender of such global Note, distinguishing between any payment of principal
and any payment of interest, will be made on such bearer global Note by such
Paying Agent and such record shall be prima facie evidence that the payment in
question has been made.

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      Payments of principal (other than instalments of principal (if any) prior
to the final instalment) in respect of Registered Notes (whether in definitive
or global form) will be made in the manner specified in paragraph (a) to the
persons in whose name such Notes are registered at the close of business on the
business day (being for this purpose a day on which banks are open for business
in the city where the Registrar is located) immediately prior to the relevant
payment date against presentation and surrender (or, in the case of part payment
only of any sum due, endorsement) of such Notes at the specified office of the
Registrar or any of the Paying Agents.

      Payments of interest due on a Registered Note (whether in definitive or
global form) and payments of instalments of principal (if any) due on a
Registered Note (other than the final instalment) will be made in the manner
specified in paragraph (a) to the person in whose name such Note is registered
at the close of business on the fifteenth day (whether or not such fifteenth day
is a business day (being for this purpose a day on which banks are open for
business in the city where the Registrar is located) (the "Record Date")) prior
to such due date. In the case of payments by cheque, cheques will be mailed to
the holder (or the first named of joint holders) at such holder's registered
address on the business day (as described above) immediately preceding the due
date.

      If payment in respect of any Registered Note is required by credit or
transfer as referred to in paragraph (a) above application for such payment must
be made by the holder to the Registrar not later than the relevant Record Date.

      Unless otherwise specified, the holder of a global Note shall be the only
person entitled to receive payments in respect of Notes represented by such
global Note and the Issuer and the Guarantor will be discharged by payment to,
or to the order of, the holder of such global Note in respect of each amount so
paid. Each of the persons shown in the records of DTC, Euroclear or Clearstream,
Luxembourg as the beneficial holder of a particular nominal amount of Notes
represented by such global Note must, unless the applicable Pricing Supplement
states otherwise, look solely to DTC, Euroclear or Clearstream, Luxembourg, as
the case may be, for his share of each payment so made by the Issuer or the
Guarantor to, or to the order of, the holder of such global Note. Unless
otherwise specified, no person other than the holder of such global Note shall
have any claim against the Issuer or the Guarantor in respect of any payments
due on that global Note.

      All amounts payable to DTC or its nominee as registered holder of a
Registered Global Note in respect of Notes denominated in a Specified Currency
other than U.S. dollars shall be paid by transfer by the Registrar to an account
in the relevant Specified Currency of the Exchange Agent on behalf of DTC or its
nominee for payment in such Specified Currency or conversion into U.S. dollars
in accordance with the provisions of the Note Issuance Agreement.

      Notwithstanding the foregoing, U.S. dollar payments of principal and
interest in respect of Bearer Notes will be made at the specified office of a
Paying Agent in the United States:

      (i)   if:

            (A)   the Issuer and the Guarantor have appointed Paying Agents with
                  specified offices outside the United States with the
                  reasonable expectation that such Paying Agents would be able
                  to make payment in U.S. dollars at such specified offices
                  outside the United States of the full amount of principal and
                  interest on the Bearer Notes in the manner provided above when
                  due;

            (B)   payment of the full amount of such principal and interest at
                  all such specified offices outside the United States is
                  illegal or effectively precluded by exchange controls or other
                  similar restrictions; and

            (C)   such payment is then permitted under United States law; and

      (ii)  at the option of the relevant holder if payment is then permitted
            without involving, in the opinion of the Issuer or the Guarantor,
            adverse tax consequences to the Issuer or the Guarantor.

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(c)   Payment Business Day

      If the date for payment of any amount in respect of any Note, Receipt or
Coupon is not a Payment Business Day, the holder thereof shall not be entitled
to payment until the next following Payment Business Day in the relevant place
and shall not be entitled to further interest or other payment in respect of
such delay. For these purposes, unless otherwise specified in the applicable
Pricing Supplement, "Payment Business Day" means any day which is:

      (i)   a day on which commercial banks and foreign exchange markets settle
            payments and are open for general business (including dealings in
            foreign exchange and foreign currency deposits) in the relevant
            place of presentation;

      (ii)  either (a) in relation to any sum payable in a Specified Currency
            other than euro, a Business Day (as defined in Condition 5(b)(i)) or
            (b) in relation to any sum payable in euro a day on which the TARGET
            System is open; and

      (iii) in the case of any payment in respect of a Registered Global Note
            denominated in a Specified Currency other than U.S. dollars and
            registered in the name of DTC or its nominee and, in respect of
            which an accountholder of DTC (with an interest in such Registered
            Global Note) has elected to receive any part of such payment in U.S.
            dollars, not a day on which banking institutions are authorised or
            required by law or regulation to be closed in New York City.

(d)   Linked Notes

      In the case of Linked Notes which provide for settlement by way of
delivery of a Securities Amount, the Securities Amount shall be paid and/or
delivered to the Noteholder pursuant to these Terms and Conditions, the terms of
the applicable Pricing Supplement and a transfer notice ("Transfer Notice", the
form of which is annexed to the Note Issuance Agreement and copies of which may
be obtained from the Paying Agents and the Transfer Agents). No Securities
Amount shall be paid and/or delivered until and unless a duly completed Transfer
Notice is received in the manner specified in the applicable Pricing Supplement.

      Upon receipt of such Transfer Notice by Euroclear, Clearstream, Luxembourg
or the Registrar, as the case may be, the Transfer Notice shall be irrevocable
and may not be withdrawn. After delivery of a Transfer Notice, the relevant
holder may not transfer the Notes specified therein.

      Upon receipt of a Transfer Notice, Euroclear, Clearstream, Luxembourg or
the Registrar, as the case may be, shall verify that the person specified
therein as the accountholder is the holder of the Notes referred to therein
according to its books. Subject thereto, Euroclear, Clearstream, Luxembourg or
the Registrar, as the case may be, will notify the Agent of the number of Notes
to which the Transfer Notice relates.

      Notwithstanding anything to the contrary in these Conditions, if a
Securities Amount comprises less than a whole number of the Underlying
Securities at the relevant time, then: (a) the Issuer shall not deliver and the
relevant Noteholder shall not be entitled to receive in respect of its Notes
that fraction of an Underlying Security (the "Fractional Entitlement"); and (b)
the Issuer shall pay to the relevant Noteholder a cash amount (to be paid at the
same time as the Underlying Securities comprising the Securities Amount are
delivered) equal to the value (as determined by the Calculation Agent) of such
fraction of the relevant Underlying Security, and such cash amount shall be
deemed a part of the Securities Amount for the purposes of these Terms and
Conditions.

      The costs and expenses of effecting any delivery of a Securities Amount
(the "Transfer Expenses") pursuant to the foregoing provisions (except for the
expenses of delivery by regular mail (if any), which shall be borne by the
Issuer, but including the payment of a sum sufficient to cover any transfer or
other tax or other governmental charge or insurance charges that may be imposed
in relation thereto) shall, in the absence of provision to the contrary in the
applicable Pricing

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Supplement, be borne by the Noteholder and shall be deducted by the Issuer from
the amount (including, without limitation, the Securities Amount) due to such
holder.

      The Underlying Securities will be delivered at the risk of the relevant
Noteholder in such manner as may be specified in the Transfer Notice and,
notwithstanding Condition 5(e) above, no additional payment or delivery will be
due to a Noteholder where any Underlying Securities are delivered after their
due date in circumstances beyond the control of the Issuer, the Guarantor or the
Settlement Agent.

(e)   Interpretation of Principal and Interest

      Any reference in these Terms and Conditions to principal in respect of the
Notes shall be deemed to include, as applicable:

      (i)   any additional amounts which may be payable with respect to
            principal under Condition 8;

      (ii)  the Final Redemption Amount of the Notes;

      (iii) the Early Redemption Amount of the Notes;

      (iv)  the Optional Redemption Amount(s) (if any) of the Notes;

      (v)   in relation to Notes redeemable in instalments, the Instalment
            Amounts;

      (vi)  in relation to Zero Coupon Notes, the Amortised Face Amount; and

      (vii) any premium and any other amounts (other than interest) which may be
            payable by the Issuer or the Guarantor under or in respect of the
            Notes.

      Any reference in these Terms and Conditions to interest in respect of the
Notes shall be deemed to include, as applicable, any additional amounts which
may be payable with respect to interest under Condition 8.

      In the case of Linked Notes, references in these Terms and Conditions to
principal and/or interest and Securities Amount(s) shall mean such amount less
any expenses, fees, stamp duty, levies or other amounts payable on or in respect
of the relevant Securities Amount(s).

7.    REDEMPTION AND PURCHASE

(a)   Redemption at Maturity

      Unless previously redeemed or purchased and cancelled as specified below,
each Note will be redeemed by the Issuer at its Final Redemption Amount or, in
the case only of Linked Notes where the applicable Pricing Supplement specifies
that such Notes will be redeemed by payment and/or delivery of a Securities
Amount, by the payment and/or delivery of the Securities Amount specified in, or
determined in the manner specified in, the applicable Pricing Supplement in the
relevant Specified Currency (where applicable) on the relative Maturity Date.

(b)   Redemption for Tax Reasons

            The Notes may be redeemed at the option of the Issuer or the
                  Guarantor in whole, but not in part, at any time (in the case
                  of Notes other than Floating Rate Notes and Indexed Interest
                  Notes) or on any Interest Payment Date (in the case of
                  Floating Rate Notes and Indexed Interest Notes) on giving not
                  less than 30 nor more than 60 days' notice in accordance with
                  Condition 15 to the Noteholders (which notice shall be
                  irrevocable and shall specify the date for redemption), if:

      (i)   on the occasion of the next payment or delivery due under the Notes,
            the Issuer (or, where

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            payment or delivery is required to be made by the Guarantor pursuant
            to the Guarantee, the Guarantor) has or will become obliged to pay
            Additional Amounts as described in Condition 8 as a result of any
            change in or amendment to the laws (or any regulations or rulings
            promulgated thereunder) of the country in which the Issuer or, as
            the case may be, the Guarantor is organised or any political
            subdivision or any taxing authority thereof or therein affecting
            taxation, or any change in an official application or interpretation
            of such laws, regulations or rulings whether or not such change or
            amendment is made with respect to the Issuer, the Guarantor or any
            affiliate thereof, which change or amendment becomes effective or
            generally known on or after the Issue Date of the first Tranche of
            the Notes; and

      (ii)  such obligation cannot be avoided by the Issuer or, as the case may
            be, the Guarantor taking reasonable measures available to it,

provided that (A) no such notice of redemption shall be given earlier than 90
days prior to the earliest date on which the Issuer or, as the case may be, the
Guarantor would be obliged but for such redemption to pay such Additional
Amounts were a payment or delivery in respect of the Notes then due and (B) at
the time such notice is given, the obligation to pay such Additional Amounts
remains in effect. Prior to the publication of any notice of redemption pursuant
to this Condition, the Issuer or, as the case may be, the Guarantor shall
deliver to the Agent (x) a certificate signed by a duly authorised officer of
the Issuer or, as the case may be, the Guarantor stating that the Issuer or, as
the case may be, the Guarantor is entitled to effect such redemption and setting
forth a statement of facts showing that the conditions precedent to the right of
the Issuer or, as the case may be, the Guarantor so to redeem have occurred, and
(y) a written opinion of independent legal counsel of recognised standing to the
effect that the Issuer or, as the case may be, the Guarantor has or will become
obliged to pay such Additional Amounts as a result of such change or amendment.

      In addition, if the Guarantor determines, based upon a written opinion of
independent legal counsel of recognised standing, that any payment made outside
the United States by the Guarantor pursuant to the Guarantee, or by any Paying
Agent, of the full amount of principal or interest due with respect to any
Bearer Note, Receipt or Coupon pursuant to the Guarantee would, under any
present or future laws or regulations of the United States or any political
subdivision or any taxing authority thereof or therein, be subject to any
certification, identification or other information reporting requirement of any
kind, the effect of which is the disclosure to the Guarantor, any Paying Agent
or any governmental authority of the nationality, residence or identity (as
distinct from status as a United States Alien, as defined in Condition 8) of a
beneficial owner of such Note, Receipt or Coupon who is a United States Alien
(other than such a requirement which (a) would not be applicable to a payment
made by the Guarantor or any one of its Paying Agents pursuant to the Guarantee
(i) directly to the beneficial owner or (ii) to any custodian, nominee or other
agent of the beneficial owner, (b) is applicable only to a payment by a
custodian, nominee or other agent of the beneficial owner to such beneficial
owner, or (c) can be satisfied by the custodian, nominee or other agent
certifying that the beneficial owner is a United States Alien; provided that, in
each case referred to in (a)(ii), (b) and (c) above, payment to the beneficial
owner by such custodian, nominee or other agent of such beneficial owner is not
otherwise subject to any such requirement), the Guarantor at its election will
either (A) redeem (on an Interest Payment Date in the case of Floating Rate
Notes and Indexed Interest Notes) all the Notes, upon not less than 30 nor more
than 60 days' prior notice in accordance with Condition 15 or (B) if and so long
as the conditions of the second to last paragraph in Condition 8 are satisfied,
pay the Additional Amounts specified in that Condition. The Guarantor will make
such determination and election and notify the Agent thereof as soon as
practicable and the Guarantor will promptly give notice of such determination in
accordance with Condition 15 (the "Determination Notice"), stating the effective
date of such certification, identification or information reporting requirement,
whether the Guarantor will redeem the Notes or will pay the Additional Amounts
specified in such paragraph and (if applicable) the last date by which the
redemption of the Notes must take place. If the Guarantor elects to redeem the
Notes, such redemption shall take place at any time (in the case of Notes other
than Floating Rate Notes and Indexed Interest Notes) or on any Interest Payment
Date (in the case of Floating Rate Notes and Indexed Interest Notes) not later
than one year after publication of

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the Determination Notice, as the Guarantor elects by notice in writing to the
Agent at least 60 days before such date, unless shorter notice is acceptable to
the Agent. Notwithstanding the foregoing, the Guarantor will not so redeem the
Notes if the Guarantor, based upon a written opinion of independent legal
counsel of recognised standing, subsequently determines, not less than 30 days
prior to the redemption date, that subsequent payments would not be subject to
any such requirement, in which case the Guarantor will notify the Agent in
writing and the Guarantor will promptly give notice to the holders of the Notes
of that determination and any earlier redemption notice will thereupon be
revoked and of no further effect. If the Guarantor elects as provided in (B)
above to pay Additional Amounts, the Guarantor may, as long as the Guarantor is
obliged to pay such Additional Amounts, redeem all of the Notes as aforesaid,
upon not less than 30 nor more than 60 days' prior notice in accordance with
Condition 15.

      The Guarantor will make the determination described above as soon as
practicable after it becomes aware of an event that might give rise to such a
determination. The effective date of a determination will be the later of the
date on which such determination is made and the date of enactment of the law or
adoption of the regulation or interpretation that is the basis for such
determination.

      Notes redeemed pursuant to this Condition 7(b) or the second to last
paragraph in Condition 8 will be redeemed at their Early Redemption Amount
referred to in paragraph (e) below together (if appropriate) with interest
accrued to (but excluding) the date of redemption.

(c)   Redemption at the Option of the Issuer

      If the Issuer is specified in the applicable Pricing Supplement as having
an option to redeem, the Issuer may, having given:

      (i)   not less than 30 nor more than 60 days' notice to the Noteholders in
            accordance with Condition 15; and

      (ii)  not less than 30 days before the giving of the notice referred to in
            (i), notice to the Agent and (in the case of a redemption of
            Registered Notes), the Registrar,

(which notices shall be irrevocable and shall specify the date fixed for
redemption), redeem all or some only of the Notes then outstanding on the
Optional Redemption Date(s) and at the Optional Redemption Amount(s) specified
in, or determined in the manner specified in, the applicable Pricing Supplement
together, if appropriate, with interest accrued to (but excluding) the Optional
Redemption Date(s). Any such redemption must be of a nominal amount not less
than the Minimum Redemption Amount and not more than the Maximum Redemption
Amount, in each case as may be specified in the applicable Pricing Supplement.
In the case of a partial redemption of Notes (or, as the case may be, parts of
Registered Notes), the Notes to be redeemed ("Redeemed Notes") will be selected
individually by lot without involving any part only of a Bearer Note, in the
case of Redeemed Notes represented by definitive Notes, and in accordance with
the rules of Euroclear and/or Clearstream, Luxembourg or, as the case may be,
DTC, in the case of Redeemed Notes represented by a global Note, not more than
30 days prior to the date fixed for redemption (such date of selection being
hereinafter called the "Selection Date"). In the case of Redeemed Notes
represented by definitive Notes, a list of the serial numbers of such Redeemed
Notes will be published in accordance with Condition 15 not less than 15 days
prior to the date fixed for redemption. The aggregate nominal amount of Redeemed
Notes represented by definitive Notes shall bear the same proportion to the
aggregate nominal amount of all Redeemed Notes as the aggregate nominal amount
of definitive Notes outstanding bears to the aggregate nominal amount of the
Notes outstanding, in each case on the Selection Date, provided that such first
mentioned nominal amount shall, if necessary, be rounded downwards to the
nearest integral multiple of the Specified Denomination, and the aggregate
nominal amount of Redeemed Notes represented by a global Note shall be equal to
the balance of the Redeemed Notes. No exchange of the relevant global Note will
be permitted during the period from and including the Selection Date to and
including the date fixed for redemption pursuant to this

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paragraph (c) and notice to that effect shall be given by the Issuer to the
Noteholders in accordance with Condition 15 at least five days prior to the
Selection Date.

(d)   Redemption at the Option of the Noteholders

      If the Noteholders are specified in the applicable Pricing Supplement as
having an option to redeem, upon the holder of any Note giving to the Issuer in
accordance with Condition 15 not less than 30 nor more than 60 days' notice or
such other period of notice as is specified in the applicable Pricing Supplement
(which notice shall be irrevocable), the Issuer will, upon the expiry of such
notice, redeem, subject to, and in accordance with, the terms specified in the
applicable Pricing Supplement, in whole (but not in part), such Note on the
Optional Redemption Date and at the Optional Redemption Amount specified in, or
determined in the manner specified in, the applicable Pricing Supplement
together, if appropriate, with interest accrued to (but excluding) the Optional
Redemption Date.

      To exercise the right to require redemption of this Note the holder of
this Note must deliver a duly signed and completed notice of exercise in the
form (for the time being current) obtainable from any specified office of any
Paying Agent or Transfer Agent or the Registrar (a "Put Notice") accompanied by,
if the Note is in definitive form, the Note itself (or evidence satisfactory to
the Paying Agent concerned that the Note will, following delivery of the Put
Notice, be held to its order or under its control), to the specified office of
any Paying Agent, in the case of Bearer Notes, or of any Transfer Agent or the
Registrar, in the case of Registered Notes, at any time within the notice period
during normal business hours of such Paying Agent, Transfer Agent or the
Registrar. In the Put Notice the holder must specify a bank account (or, in the
case of Registered Notes, if payment is by cheque, an address) to which payment
is to be made under this Condition.

(e)   Early Redemption Amounts

      For the purpose of Condition 7(b) above and Condition 10, the Notes will
be redeemed at the Early Redemption Amount calculated as follows:

      (i)   in the case of Notes with a Final Redemption Amount equal to the
            Issue Price, at the Final Redemption Amount thereof; or

      (ii)  in the case of Notes (other than Zero Coupon Notes but including
            Instalment Notes and Partly Paid Notes) with a Final Redemption
            Amount which is or may be less or greater than the Issue Price or
            which is payable in a Specified Currency other than that in which
            the Notes are denominated, at the amount specified in, or determined
            in the manner specified in, the applicable Pricing Supplement or, if
            no such amount or manner is so specified in the Pricing Supplement,
            at their nominal amount; or

      (iii) in the case of Linked Notes, as determined in the manner specified
            in the applicable Pricing Supplement; or

      (iv)  in the case of Zero Coupon Notes, at an amount (the "Amortised Face
            Amount") equal to the sum of:

            (A)   the Reference Price; and

            (B)   the product of the Accrual Yield (compounded annually) being
                  applied to the Reference Price from (and including) the Issue
                  Date to (but excluding) the date fixed for redemption or (as
                  the case may be) the date upon which such Note becomes due and
                  repayable,

or such other amount as is provided in the applicable Pricing Supplement.

      Where such calculation is to be made for a period which is not a whole
number of years, it shall be made (I) in the case of a Zero Coupon Note other
than a Zero Coupon Note payable in euro, on the

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basis of a 360-day year consisting of 12 months of 30 days each or (II) in the
case of a Zero Coupon Note payable in euro, on the basis of the actual number of
days elapsed divided by 365 (or, if any of the days elapsed falls in a leap
year, the sum of (x) the number of those days falling in a leap year divided by
366 and (y) the number of those days falling in a non-leap year divided by 365)
or (in either case) on such other calculation basis as may be specified in the
applicable Pricing Supplement.

(f)   Instalments

      If the Notes are repayable in instalments, they will be redeemed in the
Instalment Amounts and on the Instalment Dates specified in the applicable
Pricing Supplement.

(g)   Partly Paid Notes

      If the Notes are Partly Paid Notes, they will be redeemed, whether at
maturity, upon early redemption or otherwise, in accordance with the provisions
of this Condition as amended by the applicable Pricing Supplement.

(h)   Purchases

      The Issuer, the Guarantor, any holding company of either the Issuer or the
Guarantor or any other Subsidiary of either the Issuer or the Guarantor or any
such holding company may at any time purchase Notes (provided that, in the case
of definitive Bearer Notes, all unmatured Receipts, Coupons and Talons
appertaining thereto are purchased therewith) at any price in the open market or
otherwise. Such Notes may be held, reissued, resold or, at the option of the
Issuer, the Guarantor or the relevant holding company or Subsidiary, surrendered
to any Paying Agent and/or the Registrar for cancellation.

(i)    Cancellation

      All Notes which are redeemed will forthwith be cancelled (together, in the
case of definitive Bearer Notes, with all unmatured Receipts and Coupons
attached thereto or surrendered therewith at the time of redemption). All Notes
so cancelled and any Notes purchased and cancelled pursuant to paragraph (h)
above (together, in the case of definitive Bearer Notes, with all unmatured
Receipts and Coupons cancelled therewith) shall be forwarded to the Agent and
shall not be capable of being reissued or resold.

(j)   Late Payment on Zero Coupon Notes

      If the amount payable in respect of any Zero Coupon Note upon redemption
of such Zero Coupon Note pursuant to paragraph (a), (b), (c) or (d) above or
upon its becoming due and repayable as provided in Condition 10 is improperly
withheld or refused, the amount due and repayable in respect of such Zero Coupon
Note shall be the amount calculated as provided in paragraph (e)(iv) above as
though the references therein to the date fixed for the redemption or the date
upon which such Zero Coupon Note becomes due and repayable were replaced by
references to the date which is the earlier of:

      (i)   the date on which all amounts due in respect of such Zero Coupon
            Note have been paid; and

      (ii)  five days after the date on which the full amount of the moneys
            payable has been received by the Agent and notice to that effect has
            been given to the relevant Noteholders either in accordance with
            Condition 15 or individually.

8.    TAXATION

      The Issuer or the Guarantor (where payment and/or delivery is required to
be made pursuant to the Guarantee) will pay to the holder of any Note, Receipt
or Coupon who is not resident in the Cayman Islands or is a United States Alien
(as defined below) (as the case may be) such additional amounts ("Additional
Amounts") as may be necessary in order that every net payment of the principal
of and

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interest on such Note, after deduction or withholding for or on account of any
present or future tax, assessment or governmental charge imposed upon or as a
result of such payment by the country in which the Issuer or the Guarantor (as
the case may be) is organised, or any political subdivision or taxing authority
thereof or therein, will not be less than the amount provided for in such Note,
Receipt or Coupon then due and payable before any such tax, assessment or other
governmental charge; provided that the foregoing obligation to pay Additional
Amounts will not apply to:

      (a)   any tax, assessment or other governmental charge which would not
            have been so imposed but for:

            (i)   the existence of any present or former connection between such
                  holder (or between a fiduciary, settlor, beneficiary, member,
                  partner or shareholder of, or possessor of a power over, such
                  holder, if such holder is an estate, trust, partnership or
                  corporation) and the country in which the Issuer or Guarantor
                  (as the case may be) is organised, including, without
                  limitation, such holder (or such fiduciary, settlor,
                  beneficiary, member, shareholder or possessor) being or having
                  been a citizen or resident of the country in which the Issuer
                  or the Guarantor (as the case may be) is organised or treated
                  as a resident thereof, or being or having been engaged in
                  trade or business or present therein, or having or having had
                  a permanent establishment therein or making or having made an
                  election the effect of which is to subject such holder or
                  beneficial owner (or such fiduciary, settlor, beneficiary,
                  member, shareholder or possessor) to such tax, assessment or
                  other governmental charge;

            (ii)  the failure of such holder or beneficial owner of a Note,
                  Receipt or Coupon to comply with any requirement under income
                  tax treaties, statutes and regulations or administrative
                  practice of the country in which the Issuer or the Guarantor
                  (as the case may be) is organised, to establish entitlement to
                  exemption from or reduction of such tax, assessment or other
                  governmental charge;

            (iii) (in the case only of the Guarantor) such holder's present or
                  former status as a personal holding company, a foreign
                  personal holding company with respect to the United States, a
                  controlled foreign corporation or a passive foreign investment
                  company for United States tax purposes or a corporation which
                  accumulates earnings to avoid United States federal income
                  tax; or

            (iv)  payment being made in the Cayman Islands or the United States
                  (as the case may be) or otherwise than to an account with a
                  bank outside the United States on a Bearer Note, Receipt or
                  Coupon;

      (b)   any tax, assessment or other governmental charge which would not
            have been so imposed but for the presentation by the holder of such
            Note or any Receipt or Coupon appertaining thereto for payment on a
            date more than 10 days after the date on which such payment becomes
            due and payable or the date on which payment thereof is duly
            provided for and notice is given to holders, whichever occurs later;

      (c)   any estate, inheritance, gift, sales, transfer, personal property or
            similar tax, assessment or governmental charge;

      (d)   any tax, assessment or other governmental charge which is payable
            otherwise than by deduction or withholding from payments of
            principal of or interest on such Note, Receipt or Coupon;

      (e)   (in the case only of the Guarantor) any tax, assessment or other
            governmental charge imposed on interest received as a result of: (i)
            a person's past or present actual or constructive ownership of 10
            per cent. or more of the total combined voting power of all classes
            of stock of the Guarantor entitled to vote; (ii) such holder being a
            bank receiving interest described in section 881(c)(3)(A) of the
            United States Internal Revenue Code of 1986, as amended (the
            "Internal Revenue Code"); or (iii) such holder being a controlled
            foreign corporation with

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            respect to the United States that is related to the Guarantor by
            stock ownership;

      (f)   any tax, assessment or other governmental charge which is payable by
            a holder that is not the beneficial owner of the Note, Receipt or
            Coupon, or a portion of either, or that is a foreign or fiduciary
            partnership, but only to the extent that a beneficial owner, settlor
            with respect to such fiduciary or member of the partnership would
            not have been entitled to the payment of an Additional Amount had
            the beneficial owner or member received directly its beneficial or
            distributive share of the payment;

      (g)   any tax, assessment or other governmental charge required to be
            withheld by any Paying Agent from any payment of the principal of or
            interest on any Note, Receipt or Coupon, if such payment can be made
            without such withholding by any other Paying Agent;

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

      (i)   any Note, Receipt or Coupon presented for payment by or on behalf of
            a holder who would be able to avoid such withholding or deduction by
            presenting the relevant Note, Receipt or Coupon to another Paying
            Agent in a European Union member state;

      (j)   any tax, assessment or other governmental charge which would not
            have been so imposed but for the Note being treated as anything
            other than a debt instrument for U.S. federal income tax purposes;
            or

      (k)   any combination of items (a), (b), (c), (d), (e), (f), (g), (h), (i)
            and (j).

      For the purposes of the foregoing, the holding of or the receipt of any
payment with respect to a Note will not constitute a connection between the
holder (or between a fiduciary, settlor, beneficiary, member or shareholder of,
or a person having a power over, such holder if such holder is an estate, a
trust, a partnership or a corporation) and the Cayman Islands or the United
States of America as the case may be.

      For the purposes of these Conditions, "United States Alien" means any
person who, for United States federal income tax purposes, is a foreign
corporation, a non-resident alien individual, a foreign estate or trust subject
to withholding under Sections 1441 or 1442 of the Internal Revenue Code, or a
foreign partnership one or more of the members of which is, for United States
federal income tax purposes, a foreign corporation, a non-resident alien
individual or a foreign estate or trust subject to withholding under Sections
1441 or 1442 of the Internal Revenue Code.

      Notwithstanding the foregoing, if and for so long as a certification,
identification or other information reporting requirement referred to in the
second paragraph of Condition 7(b) would be fully satisfied by payment of a
backup withholding tax or similar charge, the Issuer or the Guarantor (where
payment and/or delivery is required to be made pursuant to the Guarantee) may
elect, by so stating in the Determination Notice, to have the provisions of this
paragraph apply in lieu of the provisions of that paragraph. In such event, the
Issuer or the Guarantor will pay as Additional Amounts such amounts as may be
necessary so that every net payment made, following the effective date of such
requirement, outside the United States by the Issuer or the Guarantor or any of
its Paying Agents of principal or interest due in respect of any Bearer Note,
Receipt or Coupon of which the beneficial owner is a United States Alien (but
without any requirement that the nationality, residence or identity of such
beneficial owner be disclosed to the Issuer, the Guarantor, any Paying Agent or
any United States governmental authority), after deduction or withholding for or
on account of such backup withholding tax or similar charge (other than a backup
withholding tax or similar charge which (i) is the result of a certification,
identification or other information reporting requirement described in
parenthesis in the first sentence of the second paragraph of Condition 7(b),
(ii) is imposed

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as a result of the fact that the Issuer or Guarantor (as the case may be) or any
of the Paying Agents has actual knowledge that the beneficial owner of such
Bearer Note, Receipt or Coupon is within the category of persons described in
items (a) or (e) of the first paragraph of this Condition 8 or (iii) is imposed
as a result of presentation of such Bearer Note, Receipt or Coupon for payment
more than 10 days after the date on which such payment becomes due and payable
or the date on which payment thereof is duly provided for and notice thereof is
given to holders, whichever occurs later) but before deduction or withholding on
account of any tax, assessment or other governmental charge described in items
(a), (b), (c), (d), (e), (f), (g), (h), (i), (j), or (k) of the first paragraph
of this Condition, will not be less than the amount provided for in such Bearer
Note, Receipt or Coupon to be then due and payable. If the Issuer or Guarantor
(as the case may be) elects to pay such Additional Amounts and so long as it is
obliged to pay such Additional Amounts, the Issuer or Guarantor (as the case may
be) may subsequently redeem the Bearer Notes at any time (in the case of Notes
other than Floating Rate Notes and Indexed Interest Notes) or (in the case of
Floating Rate Notes and Indexed Interest Notes) on any Interest Payment Date, in
whole but not in part, upon not less than 30 but not more than 60 days' notice.

      Except as specifically provided herein, the Issuer or Guarantor (as the
case may be) will not be required to make any payment with respect to any tax,
assessment or other governmental charge imposed by any government or any
political subdivision or taxing authority thereof or therein. References herein
to principal and/or interest shall be deemed also to refer to any Additional
Amounts which may be payable under this Condition 8.

9.    PRESCRIPTION

      The Notes, Receipts and Coupons will become void unless presented for
payment within a period of ten years (in the case of principal) and five years
(in the case of interest) after the Relevant Date (as defined in this Condition
9) therefor.

      There shall not be included in any Coupon sheet issued on exchange of a
Talon any Coupon the claim for payment in respect of which would be void
pursuant to this Condition or Condition 6(b) or any Talon which would be void
pursuant to Condition 6(b).

      For the purposes of these Terms and Conditions, the "Relevant Date" in
respect of any payment or delivery means (in the case of Notes or Receipts) the
due date for payment or delivery and (in the case of Coupons) the date for
payment shown on the Coupons or, if the full amount of moneys payable or
Underlying Securities deliverable is not paid or delivered to or to the order of
the Agent, the Settlement Agent or the Registrar, as the case may be, on or
before the due date for payment or delivery, the date on which the Agent, the
Settlement Agent or the Registrar, as the case may be, having received the
amount of all moneys payable or Underlying Securities deliverable in respect of
the Notes, Receipts or Coupons then due for payment, gives or procures the
giving of notice to that effect to the Noteholders in accordance with Condition
15.

10.   EVENTS OF DEFAULT

      Any Noteholder may give written notice (a "Default Notice") to the Issuer
and the Guarantor upon the happening of any of the following events (each an
"Event of Default"), provided that, in the case of the happening of any of the
Events of Default referred to in paragraphs (b) to (e) of this Condition, only
if such event is materially prejudicial to the interests of the Noteholders:

      (a)   default in the payment of any amount, or delivery of any amount
            payable on Underlying Securities deliverable, in respect of any of
            the Notes when due, which default, in the case of payments of
            interest, has continued for 30 days; or

      (b)   default in the performance of any other covenant of the Issuer or
            the Guarantor contained in, or any of its other obligations under,
            the Note Issuance Agreement, the Notes or the Guarantee, which
            default has continued for 60 days after written notice to the Issuer
            or the

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            Guarantor from any Noteholder requiring such default to be remedied;
            or

      (c)   default in respect of any other indebtedness for borrowed money of
            the Issuer, the Guarantor or any Restricted Subsidiary in excess of
            U.S.$25,000,000 that has become or has been declared due and payable
            prior to maturity, which default has continued for ten days after
            written notice to the Issuer or the Guarantor from any Noteholder
            requiring such default to be remedied; or

      (d)   a court having jurisdiction entering a decree or order for relief in
            respect of the Issuer or the Guarantor in an involuntary case under
            any applicable bankruptcy, insolvency or other similar law now or
            hereafter in effect, or appointing a receiver, liquidator, assignee,
            custodian, trustee, sequestrator (or similar official) of the Issuer
            or the Guarantor or of all or substantially all of its property, or
            ordering the winding-up or liquidation of its affairs, and such
            decree or order having remained unstayed and in effect for a period
            of 60 consecutive days; or

      (e)   the Issuer or the Guarantor commencing a voluntary case under any
            applicable bankruptcy, insolvency or other similar law now or
            hereafter in effect, or consenting to the entry of an order for
            relief in an involuntary case under any such law, or consenting to
            the appointment of or taking of possession by a receiver,
            liquidator, assignee, trustee, custodian, sequestrator (or similar
            official) of the Issuer or the Guarantor or of all or substantially
            all of its property, or making any general assignment for the
            benefit of creditors, or failing generally to pay its debts as they
            become due.

      Upon any such Default Notice(s) being given in accordance with this
Condition by a holder or holders of Notes together representing not less than 25
per cent. in nominal amount of the Notes then outstanding, the Notes shall
become immediately due and repayable at their Early Redemption Amount (as
described in Condition 7(e)) on the date of the Default Notice first permitting
such early redemption hereunder, together with accrued interest as provided in
Condition 5.

11.   REPLACEMENT OF NOTES, RECEIPTS, COUPONS AND TALONS

      If any Note, Receipt, Coupon or Talon shall become mutilated or defaced or
destroyed, lost or stolen, it may be replaced at the specified office of the
Agent outside the United States and its possessions in the case of Bearer Notes,
Receipts, Coupons or Talons, or the Registrar in New York City, in the case of
Registered Notes, upon payment by the claimant of the expenses incurred in
connection with the replacement and on such terms as to evidence and indemnity
and/or security as the Issuer and the Guarantor may reasonably require.
Mutilated or defaced Notes, Receipts, Coupons or Talons must be surrendered
before replacements will be issued.

12.   EXCHANGE OF NOTES AND TRANSFER OF REGISTERED NOTES

(a)   Exchange of Bearer Notes for Registered Notes

      A Bearer Note in definitive form may be exchanged for Registered Notes of
like aggregate nominal amount (in global or definitive form) by submission of a
duly completed request for exchange substantially in the form provided in the
Note Issuance Agreement (an "Exchange Request"), copies of which are available
from the specified office of the Registrar or any Transfer Agent, together with
the Bearer Note and (subject as provided below) all unmatured Coupons, Talons
and Receipts appertaining thereto, to a Transfer Agent at its specified office.
Within three business days of the request, if the Registered Notes for which the
Bearer Note is to be exchanged are in definitive form, the relevant Transfer
Agent will authenticate and deliver, or procure the authentication and delivery
of, at its specified office to the holder or (at the risk of the holder) send by
mail to such address as may be specified by the holder in the Exchange Request,
a definitive Registered Note of a like aggregate nominal amount to the Bearer
Note exchanged and will enter the exchange of the Bearer Note in the Register
maintained by the Registrar as of the Exchange Date. If

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the Registered Note(s) for which such Bearer Note is to be exchanged are in
global form, the amount of the applicable Registered Global Note(s) will be
increased accordingly.

      A Bearer Note surrendered in exchange for a Registered Note after a Record
Date (as defined in Condition 6(b)) and on or before the next following Fixed
Interest Date or Interest Payment Date (each as defined in Condition 5) is not
required to be surrendered with the Coupon maturing on that payment date.
Interest on a Registered Note issued on exchange will accrue as from the
immediately preceding Fixed Interest Date or Interest Payment Date, as the case
may be, except where issued in respect of a Bearer Note surrendered after a
Record Date and on or before the next following Fixed Interest Date or Interest
Payment Date, in which event interest shall accrue as from that date.

      No exchanges of Bearer Notes for Registered Notes or interests in
Registered Global Notes will be permitted for so long as the Bearer Notes are
represented by a Temporary Bearer Global Note.

(b)   Form of Registered Notes

      Registered Notes of each Tranche sold outside the United States in
reliance on Regulation S under the United States Securities Act of 1933, as
amended (the "Securities Act"), will initially be represented by a permanent
global Note in registered form, without interest coupons, (the "Reg. S Global
Note"), deposited with a custodian for, and registered in the name of a nominee
of, DTC for the accounts of Euroclear and Clearstream, Luxembourg. Notes in
definitive form issued in exchange for Reg. S Global Notes or otherwise sold or
transferred in reliance on Regulation S under the Securities Act, together with
the Reg. S Global Notes, are referred to herein as "Reg. S Notes". Prior to
expiry of the period that ends 40 days after completion of the distribution of
each Tranche of Notes, as certified by the relevant Dealer, in the case of a
non-syndicated issue, or by the Lead Manager, in the case of a syndicated issue
(the "Distribution Compliance Period"), beneficial interests in a Reg. S Global
Note may be held only through Euroclear or Clearstream, Luxembourg. After expiry
of such Distribution Compliance Period, beneficial interests in a Reg. S Note
may be held through DTC directly, by a participant in DTC, or indirectly,
through a participant in DTC.

      Registered Notes of each Tranche sold in private transactions to qualified
institutional buyers within the meaning of Rule 144A under the Securities Act
("QIBs") will initially be represented by a permanent global Note in registered
form, without interest coupons (the "Restricted Global Note" and, together with
the Reg. S Global Note, the "Registered Global Notes") deposited with a
custodian for, and registered in the name of a nominee of, DTC. Notes in
definitive form issued in exchange for Restricted Global Notes or otherwise sold
or transferred in accordance with the requirements of Rule 144A under the
Securities Act, together with the Restricted Global Notes, are referred to
herein as "Restricted Notes".

      Registered Notes of each Tranche sold to accredited investors (as defined
in Rule 501(a) (1), (2), (3) or (7) under the Securities Act) that are
institutions ("Institutional Accredited Investors") who agree to purchase the
Notes for their own account and not with a view to the distribution thereof will
be in definitive form, registered in the name of the holder thereof.

      Registered Notes in definitive form issued to Institutional Accredited
Investors and Restricted Notes shall bear the legend set forth in the Restricted
Global Note (the "Legend"), such Notes also being referred to herein as
"Legended Notes". Upon the transfer, exchange or replacement of Legended Notes,
or upon specific request for removal of the Legend, the Registrar shall (save as
provided in Condition 12(f)) deliver only Legended Notes or refuse to remove
such Legend, as the case may be, unless there is delivered to the Issuer such
satisfactory evidence as may reasonably be required by the Issuer, which may
include an opinion of U.S. counsel, that neither the Legend nor the restrictions
on transfer set forth therein are required to ensure compliance with the
provisions of the Securities Act.

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      Subject as otherwise provided in this Condition 12, Registered Notes in
definitive form may be exchanged or transferred in whole or in part in the
authorised denominations for one or more definitive Registered Notes of like
aggregate nominal amount.

(c)   Exchange of interests in Registered Global Notes for Registered Notes in
      definitive form

      Interests in the Reg. S Global Note and the Restricted Global Note will be
exchangeable for Registered Notes in definitive form, if (i) Euroclear and/or
Clearstream, Luxembourg or DTC, as the case may be, notifies the Issuer that it
is unwilling or unable to continue as depositary for such Registered Global
Note, (ii) if applicable, DTC ceases to be a "Clearing Agency" registered under
the United States Securities Exchange Act of 1934, as amended, or either
Euroclear or Clearstream, Luxembourg is closed for business for a continuous
period of 14 days (other than by reason of holiday, statutory or otherwise) or
announces its intention permanently to cease business, and a successor
depositary or alternative clearance system satisfactory to the Issuer and the
Agent is not available, (iii) an Event of Default has occurred and is continuing
with respect to such Notes, (iv) the holder of a beneficial interest in the
Restricted Global Note notifies the Registrar in writing that it is transferring
such beneficial interest to an Institutional Accredited Investor who is required
to hold its beneficial interest in the Registered Notes in definitive form, or
(v) unless otherwise provided in the applicable Pricing Supplement, a written
request for one or more Registered Notes in definitive form is made by a holder
of a beneficial interest in a Registered Global Note; provided that in the case
of (v) such written notice or request, as the case may be, is submitted to the
Registrar by the beneficial owner not less than 60 days (or such other period as
may be indicated in the applicable Pricing Supplement) prior to the requested
date of such exchange. Upon the occurrence of any of the events described in the
preceding sentence, the Issuer will cause the appropriate Registered Notes in
definitive form to be delivered, provided that, notwithstanding the above, no
Registered Notes in definitive form will be issued until expiry of the
applicable Distribution Compliance Period.

(d)   Transfers of Registered Global Notes

      Transfers of a Registered Global Note shall be limited to transfers of
such Registered Global Note, in whole but not in part, to a nominee of DTC or to
a successor of DTC or such successor's nominee.

(e)   Transfers of interests in Reg. S Notes

      Prior to expiry of the applicable Distribution Compliance Period,
transfers by the holder of, or of a beneficial interest in, a Reg. S Note to a
transferee in the United States or who is a U.S. person will only be made:

      (i)   upon receipt by the Registrar of a written certification
            substantially in the form set out in the Note Issuance Agreement,
            amended as appropriate (a "Transfer Certificate"), copies of which
            are available from the specified office of the Registrar or any
            Transfer Agent, from the transferor of the Note or beneficial
            interest therein to the effect that such transfer is being made:

            (A)   to a person whom the transferor reasonably believes is a QIB
                  in a transaction meeting the requirements of Rule 144A; or

            (B)   to a person who is an Institutional Accredited Investor,

together with, in the case of (B), a duly executed investment letter from the
relevant transferee substantially in the form set out in the Note Issuance
Agreement (an "IAI Investment Letter"); or

      (ii)  otherwise pursuant to the Securities Act or an exemption therefrom,
            subject to receipt by the Issuer of such satisfactory evidence as
            the Issuer may reasonably require, which may include an opinion of
            U.S. counsel, that such transfer is in compliance with any
            applicable securities laws of the federal government and of any
            state of the United States,

and, in each case, in accordance with any applicable securities laws of the
federal government and of any state of the United States or any other
jurisdiction.

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   In the case of (A) above, such transferee may take delivery through a
Legended Note in global or definitive form and, in the case of (B) above, such
transferee may take delivery only through a Legended Note in definitive form.
After expiry of the applicable Distribution Compliance Period (i) beneficial
interests in Reg. S Notes may be held through DTC directly, by a participant in
DTC, or indirectly through a participant in DTC and (ii) such certification
requirements will no longer apply to such transfers.

(f)   Transfers of interests in Legended Notes

      Transfers of Legended Notes or beneficial interests therein may be made:

      (i)   to a transferee who takes delivery of such interest through a Reg. S
            Note, upon receipt by the Registrar of a duly completed Transfer
            Certificate from the transferor to the effect that such transfer is
            being made in accordance with Regulation S and that, if such
            transfer is being made prior to expiry of the applicable
            Distribution Compliance Period, the interests in the Notes being
            transferred will be held immediately thereafter through Euroclear
            and/or Clearstream, Luxembourg; or

      (ii)  to a transferee who takes delivery of such interest through a
            Legended Note:

            (A)   where the transferee is a person whom the transferor
                  reasonably believes is a QIB in a transaction meeting the
                  requirements of Rule 144A, without certification; or

            (B)   where the transferee is an Institutional Accredited Investor,
                  subject to delivery to the Registrar of a Transfer Certificate
                  from the transferor to the effect that such transfer is being
                  made to an Institutional Accredited Investor, together with a
                  duly executed IAI Investment Letter from the relevant
                  transferee; or

      (iii) otherwise pursuant to the Securities Act or an exemption therefrom,
            subject to receipt by the Issuer of such satisfactory evidence as
            the Issuer may reasonably require, which may include an opinion of
            U.S. counsel, that such transfer is in compliance with any
            applicable securities laws of the federal government and of any
            state of the United States,

and in each case, in accordance with any applicable securities laws of the
federal government and of any state of the United States or any other
jurisdiction.

      Notes transferred by Institutional Accredited Investors to QIBs pursuant
to Rule 144A or outside the United States pursuant to Regulation S will be
eligible to be held by such QIBs or non-U.S. investors through DTC and the
Registrar will arrange for any Notes which are the subject of such a transfer to
be represented by the appropriate Registered Global Note, where applicable.

(g)   Exchanges and transfers of Registered Notes generally

      Registered Notes may not be exchanged for Bearer Notes.

      Holders of Registered Notes in definitive form, other than Institutional
Accredited Investors, may exchange such Notes for interests in a Registered
Global Note of the same type at any time.

      Transfers of beneficial interests in Registered Global Notes will be
effected by DTC, Euroclear or Clearstream, Luxembourg, as the case may be, and,
in turn, by participants and, if appropriate, indirect participants in such
clearing systems acting on behalf of beneficial transferors and transferees of
such interests. A beneficial interest in a Registered Global Note will be
transferable and exchangeable for Notes in definitive form or for a beneficial
interest in another Registered Global Note only in accordance with the rules and
operating procedures for the time being of DTC, Euroclear or Clearstream,
Luxembourg, as the case may be (the "Applicable Procedures").

      Upon the terms and subject to the conditions set forth in the Note
Issuance Agreement, a Registered Note in definitive form may be transferred in
whole or in part (in the authorised

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denominations set out in the applicable Pricing Supplement) by the holder or
holders surrendering the Registered Note for registration of the transfer of the
Registered Note (or the relevant part of the Registered Note) at the specified
office of the Registrar or any Transfer Agent, with the form of transfer thereon
duly executed by the holder or holders thereof or his or their attorney or
attorneys duly authorised in writing and upon the Registrar or, as the case may
be, the relevant Transfer Agent, after due and careful enquiry, being satisfied
with the documents of title and the identity of the person making the request
and subject to such reasonable regulations as the Issuer and the Registrar, or
as the case may be, the relevant Transfer Agent may prescribe, including any
restrictions imposed by the Issuer on transfers of Registered Notes originally
sold to a U.S. person. Subject as provided above, the Registrar or, as the case
may be, the relevant Transfer Agent will, within three business days (being for
this purpose a day on which banks are open for business in the city where the
specified office of the Registrar or, as the case may be, the relevant Transfer
Agent is located) of the request (or such longer period as may be required to
comply with any applicable fiscal or other laws or regulations) authenticate and
deliver, or procure the authentication and delivery of, at its specified office
to the transferee or (at the risk of the transferee) send by mail to such
address as the transferee may request, a new Registered Note in definitive form
of a like aggregate nominal amount to the Registered Note (or the relevant part
of the Registered Note) transferred. In the case of the transfer of part only of
a Registered Note in definitive form, a new Registered Note in definitive form
in respect of the balance of the Registered Note not transferred will be so
authenticated and delivered or (at the risk of the transferor) sent to the
transferor.

      Exchanges or transfers by a holder of a Registered Note in definitive form
for an interest in, or to a person who takes delivery of such Note through, a
Registered Global Note will be made no later than 60 days after the receipt by
the Registrar or, as the case may be, relevant Transfer Agent of the Registered
Note in definitive form to be so exchanged or transferred and, if applicable,
upon receipt by the Registrar of a written certification from the transferor.

(h)   Registration of transfer upon partial redemption

      In the event of a partial redemption of Notes under Condition 7(c), the
Issuer shall not be required:

      (i)   to register the transfer of Registered Notes (or parts of Registered
            Notes) during the period beginning on the sixty-fifth day before the
            date of the partial redemption and ending on the date on which
            notice is given specifying the serial numbers of Notes called (in
            whole or in part) for redemption (both inclusive); or

      (ii)  to register the transfer of any Registered Note, or part of a
            Registered Note, called for partial redemption.

(i)   Closed periods

      No Noteholder may require the transfer of a Registered Note to be
registered or a Bearer Note to be exchanged for a Registered Note during the
period of 30 days ending on the due date for any payment of principal or
interest or payment and/or delivery of any Securities Amount on that Note.

(j)   Costs of exchange or registration

      The costs and expenses of effecting any exchange or registration of
transfer pursuant to the foregoing provisions (except for the expenses of
delivery by other than regular mail (if any) and, if the Issuer shall so
require, for the payment of a sum sufficient to cover any tax or other
governmental charge or insurance charges that may be imposed in relation thereto
which will be borne by the Noteholder) will be borne by the Issuer or the
Guarantor, as the case may be.

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13.   AGENT, PAYING AGENTS, TRANSFER AGENTS, EXCHANGE AGENT, REGISTRAR AND
      SETTLEMENT AGENT

      The names of the initial Agent, the initial Registrar, the other initial
Paying Agents, the initial Exchange Agent and the initial Transfer Agents and
their initial specified offices are set out below. In addition, the Agent may
(with the prior written consent of the Issuer and the Guarantor) delegate
certain of its functions and duties in relation to Linked Notes to a settlement
agent (such person being the "Settlement Agent").

      The Issuer and the Guarantor are entitled to vary or terminate the
appointment of any Paying Agent or the Registrar or the Exchange Agent or any
Transfer Agent or Settlement Agent and/or appoint additional or other Paying
Agents or additional or other Registrars, Exchange Agents, Transfer Agents or
Settlement Agents and/or approve any change in the specified office through
which any Paying Agent, Registrar, Exchange Agent, Transfer Agent or Settlement
Agent acts, provided that:

      (i)   so long as the Notes are listed on any stock exchange or admitted to
            listing by any other relevant authority, there will at all times be
            a Paying Agent (which may be the Agent), in the case of Bearer
            Notes, and a Transfer Agent (which may be the Registrar), in the
            case of Registered Notes, with a specified office in such place as
            may be required by the rules and regulations of the relevant stock
            exchange (or any other relevant authority);

      (ii)  there will at all times be a Paying Agent with a specified office in
            a principal financial centre in continental Europe;

      (iii) there will at all times be a Registrar with a specified office in
            New York City;

      (iv)  there will at all times be a Transfer Agent;

      (v)   so long as any of the Registered Global Notes payable in a Specified
            Currency other than U.S. dollars are held through DTC or its
            nominee, there will at all times be an Exchange Agent with a
            specified office in New York City;

      (vi)  there will at all times be an Agent; and

      (vii) if any European Union Directive on the taxation of savings
            implementing the conclusions of the ECOFIN Council meeting of
            November 26-27, 2000 or any law implementing or complying with, or
            introduced in order to conform to such Directive is introduced,
            there will at all times, to the extent possible, be a Paying Agent
            in a European Union member state that will not be obliged to
            withhold or deduct tax pursuant to any such Directive or law.

      In addition, the Issuer and the Guarantor shall forthwith appoint a Paying
Agent having a specified office in New York City in the circumstances described
in the final paragraph of Condition 6(b). Any variation, termination,
appointment or change shall only take effect (other than in the case of
insolvency, when it shall be of immediate effect) after not less than 30 nor
more than 45 days' prior notice thereof shall have been given to the Noteholders
in accordance with Condition 15 provided that no such variation, termination,
appointment or change shall take effect (except in the case of insolvency)
within 45 days before or after any Fixed Interest Date or Interest Payment Date,
as the case may be.

      In acting under the Note Issuance Agreement, the Exchange Agent, the
Registrar, the Agent, the Paying Agents, the Transfer Agents and any Settlement
Agent act solely as agents of the Issuer and the Guarantor and do not assume any
obligation or relationship of agency or trust to or with the Noteholders,
Receiptholders or Couponholders, except that (without affecting the obligations
of the Issuer and the Guarantor to the Noteholders, Receiptholders and
Couponholders to repay Notes and pay interest thereon or pay and/or deliver any
Securities Amount in respect thereof) any funds or Underlying Securities
received by the Agent for the payment of the principal of or interest on the

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Notes or payment and/or delivery of any Securities Amounts shall be held by it
on trust for the Noteholders and/or Receiptholders and/or Couponholders until
the expiry of the period of prescription specified in Condition 9. The Note
Issuance Agreement contains provisions for the indemnification of the Paying
Agents, the Registrar, the Exchange Agent, the Transfer Agents and any
Settlement Agent and for their relief from responsibility in certain
circumstances and entitles any of them to enter into business transactions with
the Issuer, the Guarantor and any of their respective Subsidiaries without being
liable to account to the Noteholders, Receiptholders or Couponholders for any
resulting profit.

14.   EXCHANGE OF TALONS

      On and after the Fixed Interest Date or the Interest Payment Date, as
appropriate, on which the final Coupon comprised in any Coupon sheet matures,
the Talon (if any) forming part of such Coupon sheet may be surrendered at the
specified office of the Agent or any other Paying Agent in exchange for a
further Coupon sheet including (if such further Coupon sheet does not include
Coupons to (and including) the final date for the payment of interest due in
respect of the Note to which it appertains) a further Talon, subject to the
provisions of Condition 9. Each Talon shall, for the purposes of these Terms and
Conditions, be deemed to mature on the Fixed Interest Date or the Interest
Payment Date (as the case may be) on which the final Coupon comprised in the
relative Coupon sheet matures.

15.   NOTICES

      All notices regarding the Bearer Notes shall be valid if published: (i) in
a leading English language daily newspaper of general circulation in London; and
(ii) if and for so long as the Notes are listed on the Luxembourg Stock
Exchange, a daily newspaper of general circulation in Luxembourg. It is expected
that publication will be made in the Financial Times in London and the
Luxemburger Wort in Luxembourg. The Issuer shall also ensure that notices are
duly published in a manner which complies with the rules and regulations of any
other stock exchange or other relevant authority on which the Notes are for the
time being listed or by which they have been admitted to listing. Any such
notice will be deemed to have been given on the date of the first publication
or, where required to be published in more than one newspaper, on the date of
the first publication in all the required newspapers.

      All notices regarding the Registered Notes will be deemed to be validly
given if sent by first class mail or (if posted to an address overseas) by
airmail to the holders (or the first named of joint holders) at their respective
addresses recorded in the register and will be deemed to have been given on the
fourth day after mailing and, in addition, for so long as any Registered Notes
are listed on a stock exchange or admitted to listing by any other relevant
authority and the rules of that stock exchange or other relevant authority so
require, such notice will be published in a daily newspaper of general
circulation in the place or places required by that stock exchange or other
relevant authority.

      Until such time as any definitive Notes are issued, there may, so long as
the global Note(s) is or are held in its or their entirety on behalf of
Euroclear and/or Clearstream, Luxembourg or DTC, be substituted for such
publication in such newspaper(s) the delivery of the relevant notice to
Euroclear and/or Clearstream, Luxembourg or DTC for communication by them to the
holders of the Notes. Any such notice shall be deemed to have been given to the
holders of the Notes on the same day as delivery is made to Euroclear and/or
Clearstream, Luxembourg or DTC, unless otherwise specified in the applicable
Pricing Supplement.

      Notices to be given by any Noteholder shall be in writing and given by
lodging the same, together with the relative Note or Notes, with the Agent.
Whilst any of the Notes are represented by a global Note, such notice may be
given by any Noteholder to the Agent via Euroclear and/or Clearstream,
Luxembourg or DTC, as the case may be, in such manner as the Agent and Euroclear
and/or Clearstream, Luxembourg or DTC, as the case may be, may approve for this
purpose and any such notice shall be deemed to have been given to the Issuer and
the Agent on the same day as delivery is made to such clearing system(s).

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16.   MEETINGS OF NOTEHOLDERS, MODIFICATION AND WAIVER

      The Note Issuance Agreement contains provisions for convening meetings of
the Noteholders to consider any matter affecting their interests, including the
sanctioning by Extraordinary Resolution of a modification of the Notes, the
Receipts, the Coupons or certain provisions of the Note Issuance Agreement. Such
a meeting may be convened by the Issuer, the Guarantor or Noteholders holding
not less than five per cent. in nominal amount of the Notes for the time being
remaining outstanding. The quorum at any such meeting for passing an
Extraordinary Resolution is one or more persons holding or representing not less
than 50 per cent. in nominal amount of the Notes for the time being outstanding,
or at any adjourned meeting one or more persons being or representing
Noteholders whatever the nominal amount of the Notes so held or represented,
except that at any meeting the business of which includes the modification of
certain provisions of the Notes, Receipts or Coupons (including, amongst other
things, modifying the date of maturity of the Notes or any date for payment of
interest thereon, reducing or cancelling the amount of principal or the rate of
interest payable in respect of the Notes or altering the currency of payment of
the Notes, Receipts or Coupons), the necessary quorum for passing an
Extraordinary Resolution will be one or more persons holding or representing not
less than 75 per cent., or at any adjourned such meeting not less than a clear
majority, in nominal amount of the Notes for the time being outstanding. An
Extraordinary Resolution passed at any meeting of the Noteholders shall be
binding on all the Noteholders, whether or not they are present at the meeting,
and on all Receiptholders and Couponholders.

      The Agent, the Issuer and the Guarantor may, without the consent of the
Noteholders, Receiptholders or Couponholders, agree to:

      (i)   any modification (subject as provided above) of the Note Issuance (
            Agreement which is not materially prejudicial to the interests of
            the Noteholders, Receiptholders or Couponholders; or

      (ii)  any modification of the Notes, the Receipts, the Coupons or the Note
            Issuance Agreement which is of a formal, minor or technical nature
            or which is made to correct a manifest error or to comply with
            mandatory provisions of the laws of the jurisdiction in which the
            Issuer or the Guarantor is organised.

      Any such modification shall be binding on the Noteholders, Receiptholders
and Couponholders and any such modification shall be notified to the Noteholders
as soon as practicable thereafter in accordance with Condition 15.

      Notwithstanding the provisions of this Condition 16, the Issuer may change
any of the terms of a Series of Notes as set out in the applicable Pricing
Supplement provided that it has the prior written agreement of all the holders
of such Notes then outstanding. Any such change shall become effective once
notice confirming such change (together with an amended version of the
applicable Pricing Supplement) has been delivered to all such holders.

17.   FURTHER ISSUES

      The Issuer shall be at liberty from time to time without the consent of
the Noteholders, the Receiptholders or the Couponholders to create and issue
further notes having terms and conditions the same as the Notes or the same in
all respects save for the amount and date of the first payment of interest
thereon and/or the issue price and so that the same shall be consolidated and
form a single Series with the outstanding Notes.

18.   CONSOLIDATION AND MERGER

      The Issuer and/or the Guarantor may, without the consent of the
Noteholders, the Receiptholders or the Couponholders, consolidate or merge with
or into any other company, and the Issuer and/or the Guarantor may sell, lease
or convey all or substantially all of its assets to any company organised and

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existing under the laws of the Cayman Islands (in the case of the Issuer) or the
United States of America or any state thereof (in the case of the Guarantor)
provided that (a) the company (if other than the Issuer or the Guarantor) formed
by or resulting from any such consolidation or merger or that shall have
received such assets shall expressly assume (in place of the Issuer) payment and
delivery of all amounts payable (including Additional Amounts) and deliverable
in respect of the Notes and/or, as the case may be, (in place of the Guarantor)
the obligations of the Guarantor under the Guarantee and in either case the
performance and observance of these Terms and Conditions and all of the
covenants and conditions of the Note Issuance Agreement to be performed or
observed by the Issuer or the Guarantor and (b) neither the Issuer nor the
Guarantor nor such successor company shall immediately thereafter be in default
under these Terms and Conditions, the Note Issuance Agreement, the Deed of
Guarantee and the Deed of Covenant.

19.   SUBSTITUTION

      (a) The Issuer and the Guarantor may, without the consent of the
Noteholders, the Receiptholders or Couponholders, effect the substitution (I) in
place of the Issuer or the Guarantor (or of any previous substitute under this
Condition) of any successor company of the Issuer or the Guarantor as the
principal debtor under the Notes, the Receipts, the Coupons and the Note
Issuance Agreement or, as the case may be, as guarantor of payments and
deliveries by the Issuer under the Notes, the Receipts, the Coupons and the Note
Issuance Agreement or (II) in place of the Issuer (or of any previous substitute
under this Condition) of any wholly-owned Subsidiary of the Issuer or any
successor company as the principal debtor under the Notes, the Receipts, the
Coupons and the Note Issuance Agreement, subject to: (i) (in the case of
substitution of such a Subsidiary or of any successor company of the Issuer) the
Notes being unconditionally and irrevocably guaranteed by the Guarantor or any
successor company; (ii) the substitute by deed poll agreeing to be bound by the
provisions of the Note Issuance Agreement and assuming liability for the due and
punctual payment and/or delivery of all amounts due in respect of the Notes,
Receipts or Coupons or the Guarantee (as the case may be); (iii) (without
prejudice to the generality of (ii) above) where the substitute is incorporated,
domiciled or resident in, or subject generally to the taxing jurisdiction of, a
territory other than or in addition to (in the case of a substitution in place
of the Issuer) the Cayman Islands or (in the case of a substitution in place of
the Guarantor) the United States of America or any political sub-division
thereof or any authority or agency thereof or therein having power to tax,
undertakings or covenants being given in the above-mentioned deed poll by the
substitute in terms corresponding to the provisions of Condition 8 with the
substitution for (or, as the case may be, the addition to) the references to the
Cayman Islands or the United States of America of references to that other or
additional territory in which the substitute is incorporated, domiciled or
resident or to whose taxing jurisdiction it is subject and (where applicable)
Condition 7(b) shall be modified accordingly; and (iv) no amount due in respect
of any Notes being at the relevant time overdue. In the case of a consolidation,
merger, sale, lease or conveyance permitted by Condition 18 the substitution in
place of the Issuer and/or the Guarantor, as the case may be, (or any previous
substitute under this Condition) of the company referred to in Condition 18
shall be permitted notwithstanding conditions (i) to (iv) (inclusive) of this
paragraph (a).

      (b) Any substitution pursuant to paragraph (a) of this Condition shall be
binding on the Noteholders, Receiptholders and Couponholders and shall be
notified to the Noteholders as soon as practicable in accordance with Condition
15.

20.   ADJUSTMENTS AND DISRUPTION

(a)   Linked Notes

      (i) If on or after the date on which a Transfer Notice is delivered in
respect of any Note and prior to the payment and/or delivery of the Securities
Amount(s) to which such Transfer Notice relates, any Settlement Disruption Event
is subsisting, payment and/or delivery of the relevant Securities Amount(s) (if
any) shall be postponed until the first business day (as may be defined in the
applicable

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Pricing Supplement) thereafter on which no Settlement Disruption Event is
subsisting, subject to Condition 6(a)(v) above or as otherwise stated in the
applicable Pricing Supplement. No Noteholder shall be entitled to any payment
whether on account of interest or otherwise on the Notes in the event of any
delay in the delivery of such Underlying Securities pursuant to this paragraph
and no liability in respect thereof shall attach to the Issuer or the Guarantor.

      For the purposes of this Condition, "Settlement Disruption Event" means an
event beyond the control of the Issuer or the Guarantor as a result of which
such person cannot make payment and/or delivery of the Securities Amount(s) in
the manner specified in the applicable Pricing Supplement.

      As soon as reasonably practicable following the occurrence of any
Potential Adjustment Event or any Extraordinary Event (each as defined below),
the Calculation Agent shall, in its sole and absolute discretion, determine (as
soon as practicable thereafter) the appropriate adjustment, if any, to be made
to any of these Conditions in relation to the Notes to account for the diluting
or concentrative effect of such event or otherwise necessary to preserve the
economic equivalent of the rights of the Noteholders under the Notes immediately
prior to such event, such adjustment to be effective as of the date determined
by the Calculation Agent.

      For the purposes of this Condition:

      "Potential Adjustment Event" means the declaration by, or on behalf of,
the issuer of the Underlying Securities of the terms of any of the following:

      (1)   a subdivision, consolidation or reclassification of any Underlying
            Securities (unless such event is an Extraordinary Event (as defined
            below)) or a free distribution of or in respect of any Underlying
            Securities to existing holders by way of bonus, capitalisation or
            similar issue;

      (2)   a distribution to existing holders of any Underlying Securities of
            (a) additional Underlying Securities; (b) other share capital or
            securities granting the right to payment of dividends and/or the
            proceeds of liquidation of the issuer of the Underlying Securities
            equally or proportionately with such payments to holders of the
            Underlying Securities; or (c) any other type of securities, rights
            or warrants or other assets, in any case for payment (in cash or
            otherwise) at less than the prevailing market price as determined by
            the Calculation Agent;

      (3)   a call in respect of any Underlying Securities that is not fully
            paid;

      (4)   a repurchase by the issuer of any Underlying Securities, whether out
            of profits or capital and whether the consideration for such
            repurchase is in cash, new shares, securities or otherwise; or

      (5)   any event in respect of the Underlying Securities analogous to any
            of the foregoing events or otherwise having, in the opinion of the
            Calculation Agent, a diluting or concentrative effect on the market
            value of the Underlying Securities, and

      "Extraordinary Event" means the occurrence on or prior to any Valuation
Date (as defined below) of any of the following:

      (1)   the Underlying Securities are reclassified or changed (other than a
            change in par value, if any, as a result of a subdivision or
            combination);

      (2)   the issuer of the Underlying Securities consolidates, amalgamates or
            merges with or into another entity (other than a consolidation,
            amalgamation or merger following which the issuer is the surviving
            entity);

      (3)   the Underlying Securities are the subject of a Takeover (as defined
            below);

      (4)   by reason of the adoption of or any change in any applicable law,
            the assets of the issuer of the Underlying Securities, or all of the
            outstanding Underlying Securities, are (whether permanently,
            temporarily or otherwise) nationalised, expropriated or otherwise
            required to be

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            transferred to any government, governmental agency or authority;

      (5)   by reason of the bankruptcy or insolvency (or other analogous event)
            of the issuer of the Underlying Securities (A) all such Underlying
            Securities are required to be transferred to any trustee, liquidator
            or similar official; or (B) holders of such Underlying Securities
            become legally prohibited from transferring them;

      (6)   the Underlying Securities are exchanged in whole for replacement
            assets, unless the Calculation Agent shall, in its sole and absolute
            discretion, conclude that the consequence of such replacement is not
            to alter materially the economic equivalent of the rights of the
            Noteholders under the Notes immediately prior to such event; or

      (7)   the Underlying Securities are redeemed in whole prior to their
            scheduled maturity date (if applicable) or otherwise cease to exist
            for any reason prior to any such date, unless the Calculation Agent
            shall, in its sole and absolute discretion, conclude that there is
            outstanding at such time, an alternative debt security or obligation
            of the issuer of the Underlying Securities ("Alternative
            Securities") which, if substituted for the Underlying Securities,
            would materially preserve the economic equivalent of the rights of
            the Noteholders under the Notes immediately prior to such event, in
            which event references in these Conditions to the Underlying
            Securities shall be deemed to refer instead to the Alternative
            Securities.

      In determining whether an adjustment should be made as a result of the
occurrence of a Potential Adjustment Event or an Extraordinary Event, the
Calculation Agent may take into account market conventions and practices for
those products and/or securities which it deems analogous or similar to the
Notes, and if options contracts or futures contracts on the Underlying
Securities are traded on any stock exchange, the Calculation Agent may have
regard to, but shall not be bound by, any adjustment to the terms of the
relevant options contract or futures contract made and announced by such stock
exchange.

      For the purposes of this Condition, "Takeover" in relation to any
Underlying Securities means any acquisition or offer as a result of which a
person acquires or offers to acquire, whether by a series of transactions over a
period of time or not, shares or interests, of any size, in shares which (either
alone or taken together with shares or interests in shares held or acquired by
persons acting in concert with such person) amount to 50 per cent. or more of
the nominal value of the outstanding share capital of the relevant issuer of the
relevant Underlying Securities.

      (ii) If the date specified in the applicable Pricing Supplement as being
the date of valuation or determination in respect of a Linked Note (the
"Valuation Date") is not a Valuation Business Day or there is a Market
Disruption Event on that day (each as defined below), the Valuation Date shall
be postponed until the next day which is a Valuation Business Day unless, in the
opinion of the Calculation Agent, there is a Market Disruption Event (as defined
below) on that day. If there is a Market Disruption Event on that day, then the
Valuation Date shall be the first succeeding Valuation Business Day on which
there is no Market Disruption Event, unless there is a Market Disruption Event
on each of the five Valuation Business Days immediately following the original
date that, but for the Market Disruption Event, would have been the Valuation
Date. In that case (i) the fifth Valuation Business Day shall be deemed to be
the Valuation Date, notwithstanding the Market Disruption Event, and (ii) the
Calculation Agent shall determine the official closing price (or such other
price as may be specified in the applicable Pricing Supplement) of the
Underlying Securities on that fifth Valuation Business Day in accordance with
its good faith estimate of the price of the Underlying Securities that would
have prevailed, but for the Market Disruption Event, on that fifth Valuation
Business Day.

      For purposes of this Condition 20(a):

      "Valuation Business Day" means a day that is (or, but for the occurrence
of a Market Disruption Event, would have been) a trading day on each of the
relevant stock exchange(s) specified in the applicable Pricing Supplement (for
the purposes of this Condition 20(a), the "Stock Exchange(s)")

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and any Related Exchanges (as defined below) other than a day on which trading
on any such exchange is scheduled to close prior to its regular weekday closing
time;

      "Related Exchange" means another exchange or quotation system (as
specified in the applicable Pricing Supplement or notified from time to time to
Noteholders in accordance with Condition 15), if any, on which the Underlying
Securities or options contracts or futures contracts on the Underlying
Securities are traded or quoted, and as may be selected from time to time by the
Calculation Agent; and

      "Market Disruption Event" means the occurrence or existence on the
Valuation Date during the two hour period prior to the close of trading (or such
other time as may be specified in the applicable Pricing Supplement) of a
suspension of or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by such Stock Exchange(s) or otherwise) on:

      (1)   the Stock Exchange(s) of the Underlying Securities or securities
            generally; or

      (2)   the Stock Exchange(s) or on any Related Exchange of options
            contracts or futures contracts on the Underlying Securities or
            options or futures on securities generally,

if, in the determination of the Calculation Agent, such suspension or limitation
is material. For the purposes of this definition, a limitation on the hours and
number of days of trading will not constitute a Market Disruption Event if it
results from an announced change in the regular business hours of any Stock
Exchange(s) or any Related Exchange.

(b)    Indexed Notes

      (i) If the Index (as defined in the applicable Pricing Supplement) is (I)
not calculated and announced by the sponsor specified in the applicable Pricing
Supplement (the "Sponsor") but is calculated and published by a successor to the
Sponsor (the "Successor Sponsor") acceptable to the Calculation Agent, or (II)
replaced by a successor index using, in the determination of the Calculation
Agent, the same or a substantially similar formula for and method of calculation
as used in the calculation of the Index or (III) not in existence on or prior to
the Valuation Date, but the Calculation Agent considers there to be in existence
at such time an alternative index which, if substituted for the Index, would
materially preserve the economic equivalent of the rights of the Noteholders
under the Notes immediately prior to such substitution, then the Index will be
deemed to be the index so calculated and published by the Successor Sponsor or
that successor or alternative index, as the case may be.

      If (A) on or prior to the Maturity Date in respect of any Series of
Indexed Notes the Sponsor or (if applicable) the Successor Sponsor makes a
material change in the formula for or the method of calculating the Index or in
any other way materially modifies the Index (other than a modification
prescribed in that formula or method to maintain the Index in the event of
changes in constituent stock, contracts or commodities and other routine
events), or (B) on or prior to any such Maturity Date the Sponsor or (if
applicable) the Successor Sponsor fails to calculate and publish the Index, then
the Calculation Agent shall determine the Rate of Interest or the Final
Redemption Amount (as the case may be) using, in lieu of a published level of
the Index, the level for the Index as determined by the Calculation Agent in
accordance with the formula for and method of calculating the Index last in
effect prior to that change or failure, but using only those
securities/commodities that comprised the Index immediately prior to that change
or failure (other than those securities that have since ceased to be listed on
the relevant stock exchange).

      If any value of the Index published on a given day and used or to be used
by the Calculation Agent to determine the Rate of Interest or the Final
Redemption Amount (as the case may be) is subsequently corrected and the
correction is published by the Sponsor within 30 days of the original
publication, the Calculation Agent shall notify the Issuer and the Agent of (a)
that correction and (b) the amount of principal and/or interest that is payable
as a result of that correction and as soon as

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reasonably practicable thereafter, the Issuer shall make payment of such amount
in accordance with Condition 6.

      The Calculation Agent will notify the level of the Index as of a
particular date upon application by telephone or facsimile by an interested
person during normal business hours.

      (ii) If the date specified in the applicable Pricing Supplement as being
the date of valuation or determination in respect of an Indexed Note (the
"Valuation Date") is not an Index Business Day or there is a Market Disruption
Event on that day (each as defined below), the Valuation Date shall be postponed
until the next day which is an Index Business Day unless, in the opinion of the
Calculation Agent, there is a Market Disruption Event (as defined below) on that
day. If there is a Market Disruption Event on that day, then the Valuation Date
shall be the first succeeding Index Business Day on which there is no Market
Disruption Event, unless there is a Market Disruption Event on each of the five
Index Business Days immediately following the original date that, but for the
Market Disruption Event, would have been the Valuation Date. In that case (I)
the fifth Index Business Day shall be deemed to be the Valuation Date,
notwithstanding the Market Disruption Event, and (II) the Calculation Agent
shall determine the level of the Index on that fifth Index Business Day in
accordance with its good faith estimate of the level of the Index that would
have prevailed, but for the Market Disruption Event, on that fifth Index
Business Day.

      For purposes of this Condition 20(b):

      "Index Business Day" means a day that is (or, but for the occurrence of a
Market Disruption Event, would have been) a trading day on each of the relevant
stock exchange(s) specified in the applicable Pricing Supplement (for the
purposes of this Condition 20(b), the "Stock Exchange(s)") and any Related
Exchanges (as defined below) other than a day on which trading on any such
exchange is scheduled to close prior to its regular weekday closing time;

      "Related Exchange" means another exchange or quotation system, if any, on
which options contracts or futures contracts on the Index are traded or quoted,
and as may be selected from time to time by the Calculation Agent; and

      "Market Disruption Event" means the occurrence or existence on any Index
Business Day during the two hour period prior to the close of trading (or such
other time as may be specified in the applicable Pricing Supplement) of a
suspension of or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the Stock Exchange(s) or otherwise) on:

      (1)   the Stock Exchange(s) of securities/commodities that comprise 20 per
            cent. or more of the level of the Index; or

      (2)   any Related Exchange of options contracts or futures contracts on
            the Index,

if, in the determination of the Calculation Agent, such suspension or limitation
is material. For the purposes of this definition, a limitation on the hours and
number of days of trading will not constitute a Market Disruption Event if it
results from a published change in the regular business hours of the Stock
Exchange(s) or any Related Exchange. For the purpose of determining whether a
Market Disruption Event exists at any time, if trading in a security/commodity
included in the Index is materially suspended or materially limited at that
time, then the relevant percentage contribution of that security/commodity to
the level of the Index shall be based on a comparison of (i) the portion of the
level of the Index attributable to that security/commodity relative to (ii) the
overall level of the Index, in each case immediately before that suspension or
limitation.

21.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 DISAPPLICATION

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

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22.   GOVERNING LAW AND SUBMISSION TO JURISDICTION

      The Note Issuance Agreement, the Notes, the Receipts and the Coupons are
governed by, and shall be construed in accordance with, English law.

      Each of the Issuer and the Guarantor hereby irrevocably agrees to submit
for the exclusive benefit of the Issuer, the Noteholders, the Receiptholders and
the Couponholders, to the jurisdiction of the courts of England for all purposes
in connection with the Notes, the Receipts and the Coupons and the Guarantee (as
applicable) and in relation thereto each of the Issuer and the Guarantor hereby
appoints Bear Stearns International Trading Limited at its registered office at
One Canada Square, London E14 5AD as its agent in England for service of process
on its behalf and agrees that in the event of Bear Stearns International Trading
Limited ceasing so to act or ceasing to be registered in England it will appoint
another person as its agent for service of process. Without prejudice to the
foregoing, each of the Issuer and the Guarantor further irrevocably agrees that
any suit, action or proceedings arising out of or in connection with the Notes,
the Receipts and the Coupons and the Guarantee (as applicable) may be brought in
any other court of competent jurisdiction

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                                      AGENT

                               JPMorgan Chase Bank
                                  Trinity Tower
                              9 Thomas More Street
                                 London E1W 1YT

                                  PAYING AGENTS

         JPMorgan Chase Bank              Kredietbank S.A. Luxembourgeoise
            Trinity Tower                        43 Boulevard Royal
         9 Thomas More Street                     L-2955 Luxembourg
            London E1W 1YT                      R.C. Luxembourg B6395

                                 TRANSFER AGENTS

         JPMorgan Chase Bank                     JPMorgan Chase Bank
            Trinity Tower                       450 West 33rd Street
         9 Thomas More Street                        15th Floor
            London E1W 1YT                       New York, NY 10001

                                 EXCHANGE AGENT

                               JPMorgan Chase Bank
                              450 West 33rd Street
                                   15th Floor
                               New York, NY 10001

                                    REGISTRAR

                               JPMorgan Chase Bank
                              450 West 33rd Street
                                   15th Floor
                               New York, NY 10001

and/or such other or further Agent and other or further Paying Agents, Transfer
 Agents, Exchange Agent and Registrar and/or specified offices as may from time
  to time be duly appointed by the Issuer and notice of which has been given to
                                the Noteholders.

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                                   SCHEDULE 2

                                     PART I

                      FORM OF TEMPORARY BEARER GLOBAL NOTE

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED
STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE
UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS
165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

[THIS NOTE RELATES TO NOTES WITH A MATURITY OF NOT MORE THAN 183 DAYS FROM THE
DATE OF ISSUE. BY ACCEPTING THIS OBLIGATION THE HOLDER REPRESENTS AND WARRANTS
THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED
IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE AND REGULATIONS THEREUNDER)
AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATES PERSON (OTHER THAN
AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE
AND REGULATIONS THEREUNDER).](1)

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                         (Incorporated under the laws of
                               the Cayman Islands)

                         Unconditionally and irrevocably
                                  guaranteed by

                         THE BEAR STEARNS COMPANIES INC.

                       (Incorporated under the laws of the
                               State of Delaware,
                            United States of America)

                          TEMPORARY BEARER GLOBAL NOTE

This Note is a Temporary Bearer Global Note in respect of a duly authorised
issue of Notes (the "Notes") of the Nominal Amount, Specified Currency(ies) and
Specified Denomination(s) specified in the Pricing Supplement applicable to the
Notes (the "Pricing Supplement"), a copy of which is attached hereto, of Bear
Stearns Global Asset Holdings, Ltd. (the "Issuer"). The Notes are
unconditionally and irrevocably guaranteed by The Bear Stearns Companies Inc.
(the "Guarantor"). References herein to the Conditions shall be to the Terms and
Conditions of the Notes as set out in Schedule 1 to the Note Issuance Agreement
(as defined below) as modified and supplemented by the Pricing Supplement but,
in the event of any conflict between the provisions of the said Conditions and
the information in the Pricing Supplement, the Pricing Supplement will prevail.
Words and expressions defined in the Conditions shall bear the same meanings
when used in this Global Note. This Global Note is issued subject to, and with
the benefit of, the Conditions and an Amended and Restated Note Issuance
Agreement dated June 28, 2002 (as amended and/or restated and/or

-------------
(1)   To be included only on Notes with a maturity of not more than 183 days
      from their date of issue.

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supplemented from time to time, the "Note Issuance Agreement") and made between
(inter alios) the Issuer, the Guarantor and JPMorgan Chase Bank as Agent.

The Issuer, subject to and in accordance with the Conditions, promises: (i) to
pay to the bearer hereof on each Instalment Date (if the Notes are repayable in
instalments) and on the Maturity Date and/or on the Interest Payment Date
falling in the month in which the Notes are to be redeemed and/or on such
earlier date(s) as all or any of the Notes represented by this Global Note may
become due and repayable in accordance with the Conditions, the amount payable
under the Conditions in respect of such Notes on each such date and to pay
interest (if any) on the nominal amount of the Notes from time to time
represented by this Global Note calculated and payable as provided in the
Conditions together with any other sums payable under the Conditions, upon
presentation and, at maturity, surrender of this Global Note at the specified
office of the Agent at Trinity Tower, 9 Thomas More Street, E1W 1YT or such
other office outside the United States, its territories and possessions as may
be specified by the Issuer; and (ii) in the event that any Securities Amounts
fall to be delivered under the Conditions, to pay and deliver such Securities
Amounts in accordance with the Conditions, but in each case subject to the
requirements as to certification provided herein. On any redemption or payment
of an instalment or interest being made in respect of, or purchase and
cancellation of or payment or delivery of any Securities Amount in respect of,
any of the Notes represented by this Global Note details of such redemption,
payment or purchase and cancellation or delivery (as the case may be) shall be
entered by or on behalf of the Issuer in Schedule One hereto and the relevant
space in Schedule One hereto recording any such redemption, payment or purchase
and cancellation or delivery (as the case may be) shall be signed by or on
behalf of the Issuer. Upon any such redemption, payment of an instalment or
purchase and cancellation or delivery, the nominal amount of this Global Note
and the Notes represented by this Global Note shall be reduced by the nominal
amount of such Notes so redeemed or purchased and cancelled or the amount of
such instalment or the amount of Notes in respect of which such delivery has
been made. The nominal amount of this Global Note and of the Notes represented
by this Global Note following any such redemption, payment of an instalment or
purchase and cancellation or delivery as aforesaid or any exchange as referred
to below shall be the nominal amount most recently entered in the relevant
column in Part II, III or IV of Schedule One hereto or in Schedule Two hereto.

Payments of principal and interest (if any) due prior to the Exchange Date (as
defined below) will only be made to the bearer hereof and payment and delivery
of any Securities Amounts will only be made in accordance with the Conditions to
the extent that there is presented to the Agent by Clearstream Banking, societe
anonyme ("Clearstream, Luxembourg") or Euroclear Bank S.A./N.V., as operator of
the Euroclear system ("Euroclear") a certificate, substantially in the form set
out in Part VIII of Schedule 2 to the Note Issuance Agreement, to the effect
that it has received from or in respect of a person entitled to a particular
nominal amount of the Notes represented by this Global Note (as shown by its
records) a certificate from such person in or substantially in the form of
Certificate "A" as set out in Part VIII of Schedule 2 to the Note Issuance
Agreement. The bearer of this Global Note will not (unless upon due presentation
of this Global Note for exchange, delivery of the appropriate number of
Definitive Bearer Notes (together with the Coupons appertaining thereto) or, as
the case may be, issue and delivery (or, as the case may be, endorsement) of the
Permanent Bearer Global Note is improperly withheld or refused and such
withholding or refusal is continuing at the relevant payment date) be entitled
to receive any payment hereon or payment or delivery of any Cash Amounts in
respect hereof due on or after the Exchange Date.

On or after the date (the "Exchange Date") which is the later of: (i) 40 days
after the Issue Date; and (ii) expiry of the period that ends 40 days after
completion of the distribution of this Tranche of Notes as certified by the
relevant Dealer or Dealers, in the case of a non-syndicated issue, or by the
relevant lead manager in the case of a syndicated issue, this Global Note may be
exchanged (free of charge) in whole or in part for, as specified in the Pricing
Supplement, either Definitive Bearer Notes and (if applicable) Receipts, Coupons
and/or Talons in or substantially in the forms set out in Parts IVA, V, VI and
VII of Schedule 2 to the Note Issuance Agreement (on the basis that all the
appropriate details

--------------------------------------------------------------------------------
                                       94
<PAGE>

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

have been included on the face of such Definitive Bearer Notes and (if
applicable) Receipts, Coupons and/or Talons and the Pricing Supplement (or the
relevant provisions thereof) has been incorporated in or attached to such
Definitive Bearer Notes) or a Permanent Bearer Global Note in or substantially
in the form set out in Part II of Schedule 2 to the Note Issuance Agreement
(together with the Pricing Supplement attached thereto). If Definitive Bearer
Notes and (if applicable) Receipts, Coupons and/or Talons have already been
issued in exchange for all the Notes represented for the time being by the
Permanent Bearer Global Note then this Global Note may only thereafter be
exchanged for Definitive Bearer Notes and (if applicable) Receipts, Coupons
and/or Talons pursuant to the terms hereof. Presentation of this Global Note for
exchange shall be made by the bearer hereof on any day (other than a Saturday or
Sunday) on which banks are open for business in London at the office of the
Agent specified above. The Issuer shall procure that Definitive Bearer Notes or
(as the case may be) the Permanent Bearer Global Note shall be so issued and
delivered in exchange for only that portion of this Global Note in respect of
which there shall have been presented to the Agent by Euroclear or Clearstream,
Luxembourg a certificate, substantially in the form set out in Part VIII of
Schedule 2 to the Note Issuance Agreement, to the effect that it has received
from or in respect of a person entitled to a particular nominal amount of the
Notes represented by this Global Note (as shown by its records) a certificate
from such person in or substantially in the form of Certificate "A" as set out
in Part VII of Schedule 2 to the Note Issuance Agreement. On an exchange of the
whole of this Global Note, this Global Note shall be surrendered to the Agent.
On an exchange of part only of this Global Note, details of such exchange shall
be entered by or on behalf of the Issuer in Schedule Two hereto and the relevant
space in Schedule Two hereto recording such exchange shall be signed by or on
behalf of the Issuer, whereupon the nominal amount of this Global Note and the
Notes represented by this Global Note shall be reduced by the nominal amount of
this Global Note so exchanged. On any exchange of this Global Note for a
Permanent Bearer Global Note, details of such exchange shall be entered by or on
behalf of the Issuer in Schedule Two to the Permanent Bearer Global Note and the
relevant space in Schedule Two thereto recording such exchange shall be signed
by or on behalf of the Issuer.

Until the exchange of the whole of this Global Note as aforesaid, the bearer
hereof shall in all respects (except as otherwise provided herein) be entitled
to the same benefits as if he were the bearer of Definitive Bearer Notes and the
relative Receipts, Coupons and/or Talons (if any) in the form(s) set out in
Parts IV, V, VI and VII (as applicable) of Schedule 2 to the Note Issuance
Agreement.

Each person who is for the time being shown in the records of Euroclear and/or
Clearstream, Luxembourg as the holder of a particular nominal amount of the
Notes represented by this Global Note (in which regard any certificate or other
document issued by Euroclear or Clearstream, Luxembourg as to the nominal amount
of such Notes standing to the account of any person shall be conclusive and
binding for all purposes save in the case of manifest error) shall be deemed to
be the holder of such nominal amount of such Notes for all purposes other than
with respect to payments of principal and interest on the Notes for which
purpose the bearer of this Global Note shall be deemed to be the holder of such
nominal amount of the Notes in accordance with and subject to the terms of this
Global Note and the Note Issuance Agreement. The Contracts (Rights of Third
Parties) Act 1999 applies to this paragraph of this Global Note.

In the event that this Global Note (or any part hereof) has become due and
repayable in accordance with the Conditions or that the Maturity Date or
Interest Payment Date falling in the month in which the Notes are to be redeemed
has occurred and, in either case, payment or delivery in full of the amount due
has not been made to the bearer in accordance with the foregoing then, unless
within the period of seven days commencing on the relevant due date payment or
delivery in full of the amount due in respect of this Global Note is received by
the bearer in accordance with the foregoing, this Global Note will become void
at 8.00 p.m. (London time) on such seventh day and the bearer will have no
further rights under this Global Note (but without prejudice to the rights which
the bearer or any other person may have under the Deed of Covenant executed by
the Issuer on June 28, 2002 in respect of the Notes issued under the Note
Issuance Agreement pursuant to which this Global Note is issued).

--------------------------------------------------------------------------------
                                       95
<PAGE>

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

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

This Global Note is governed by, and shall be construed in accordance with,
English law and the Issuer submits to the jurisdiction of the courts of England
for all purposes in connection with this Global Note.

This Global Note shall not be valid unless authenticated by JPMorgan Chase Bank
as Agent.

IN WITNESS whereof the Issuer has caused this Global Note to be signed on its
behalf.

                                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                                    By: .....................
                                          Duly Authorised

Authenticated by
JPMorgan Chase Bank

By: .......................
        Duly Authorised

--------------------------------------------------------------------------------
                                       96
<PAGE>

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

                                  Schedule One

                                     Part I

                                INTEREST PAYMENTS

                   Total                                   Confirmation of
                   amount of           Amount of           payment by or
Date               interest            interest            on behalf of
made               payable             paid                the Issuer

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

--------------------------------------------------------------------------------
                                       97
<PAGE>

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

                                     Part II

                          PAYMENT OF INSTALMENT AMOUNTS

                                            Remaining nominal
                                            amount of this       Confirmation
            Total amount of  Amount of      Global Note          of payment
Date        Instalment       Instalment     following such       by or on behalf
made        Amounts payable  Amounts paid   payment(1)           of the Issuer

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

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                       98
<PAGE>

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

                                    Part III

             REDEMPTIONS AND DELIVERY OF CASH OR SECURITIES AMOUNTS

<TABLE>
<CAPTION>
                                                             Remaining
                                                             nominal
                                                             amount of
                                                             this Global
                                                             Note                  Confirmation
              Total amount                                   following             of redemption
              payable or number      Amount paid             such                  by or on
Date          of securities          or number of            Redemption            behalf of the
made          deliverable            securities delivered    and/or delivery(1)    Issuer
<S>           <C>                    <C>                     <C>                   <C>
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
--------      ------------           ------------            ------------          ------------
</TABLE>

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                       99
<PAGE>

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

                                     Part IV

                           PURCHASES AND CANCELLATIONS

                                Remaining nominal
              Part of nominal   amount of this         Confirmation of
              amount of this    Global Note            purchase and
              Global Note       following such         cancellation by or
Date          purchase and      purchase and           on behalf of the
made          cancelled         cancellation(1)        Issuer

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

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                      100
<PAGE>

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

                                  Schedule Two

                                    EXCHANGES
           FOR DEFINITIVE BEARER NOTES OR PERMANENT BEARER GLOBAL NOTE

The following exchanges of a part of this Global Note for Definitive Bearer
Notes or a Permanent Bearer Global Note have been made:

               Nominal amount
               of this Global
               Note exchanged             Remaining nominal    Notation
               for Definitive Bearer      amount of this       made by or
               Notes or a                 Global Note          on behalf
Date           Permanent Bearer           following such       of the
made           Global Note                exchange(1)          Issuer

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

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                      101
<PAGE>

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

                                     PART II

                      FORM OF PERMANENT BEARER GLOBAL NOTE

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED
STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE
UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS
165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

[THIS NOTE RELATES TO NOTES WITH A MATURITY OF NOT MORE THAN 183 DAYS FROM THE
DATE OF ISSUE. BY ACCEPTING THIS OBLIGATION THE HOLDER REPRESENTS AND WARRANTS
THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED
IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE AND REGULATIONS THEREUNDER)
AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATES PERSON (OTHER THAN
AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE
AND REGULATIONS THEREUNDER).](1)

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                          (Incorporated under the laws
                             of the Cayman Islands)

                         Unconditionally and irrevocably
                                  guaranteed by

                         THE BEAR STEARNS COMPANIES INC.

                         (Incorporated under the laws of
                             the State of Delaware,
                            United States of America)

-------------
(1)   To be included only on Notes with a maturity of not more than 183 days
      from their date of issue.

--------------------------------------------------------------------------------
                                      102
<PAGE>

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

                          PERMANENT BEARER GLOBAL NOTE

This Note is a Permanent Bearer Global Note in respect of a duly authorised
issue of Notes (the "Notes") of the Nominal Amount, Specified Currency(ies) and
Specified Denomination(s) as are specified in the Pricing Supplement applicable
to the Notes (the "Pricing Supplement"), a copy of which is attached hereto, of
Bear Stearns Global Asset Holdings, Ltd. (the "Issuer"). The Notes are
unconditionally and irrevocably guaranteed by The Bear Stearns Companies Inc.
(the "Guarantor"). References herein to the Conditions shall be to the
Conditions of the Notes as set out in Schedule 1 to the Note Issuance Agreement
(as defined below) as modified and supplemented by the Pricing Supplement but,
in the event of any conflict between the provisions of the said Conditions and
the information in the Pricing Supplement, the Pricing Supplement will prevail.
Words and expressions defined in the Conditions shall bear the same meanings
when used in this Global Note. This Global Note is issued subject to, and with
the benefit of, the Conditions and an Amended and Restated Note Issuance
Agreement dated June 28, 2002 (as amended and/or restated and/or supplemented
from time to time, the "Note Issuance Agreement") and made between (inter alios)
the Issuer, the Guarantor and JPMorgan Chase Bank as Agent.

The Issuer, subject to and in accordance with the Conditions, promises: (i) to
pay to the bearer hereof on each Instalment Date (if the Notes are repayable in
instalments) and on the Maturity Date and/or on the Interest Payment Date
falling in the month in which the Notes are to be redeemed and/or on such
earlier date(s) as all or any of the Notes represented by this Global Note may
become due and repayable in accordance with the Conditions, the amount payable
under the Conditions in respect of such Notes on each such date and to pay
interest (if any) on the nominal amount of the Notes from time to time
represented by this Global Note calculated and payable as provided in the
Conditions together with any other sums payable under the Conditions, upon
presentation and, at maturity, surrender of this Global Note at the specified
office of the Agent at Trinity Tower, 9 Thomas More Street, E1W 1YT or such
other office outside the United States, its territories and possessions as may
be specified by the Issuer; and (ii) in the event that any Securities Amounts
fall to be delivered under the Conditions, to pay and deliver such Securities
Amounts in accordance with the Conditions. On any redemption or payment of an
instalment or interest being made in respect of, or purchase and cancellation of
or payment or delivery of any Securities Amount in respect of, any of the Notes
represented by this Global Note details of such redemption, payment or purchase
and cancellation or delivery (as the case may be) shall be entered by or on
behalf of the Issuer in Schedule One hereto and the relevant space in Schedule
One hereto recording any such redemption, payment or purchase and cancellation
or delivery (as the case may be) shall be signed by or on behalf of the Issuer.
Upon any such redemption, payment of an instalment or purchase and cancellation
or delivery the nominal amount of this Global Note and the Notes represented by
this Global Note shall be reduced by the nominal amount of such Notes so
redeemed or purchased and cancelled or the amount of such instalment or the
amount of Notes in respect of which such delivery has been made. The nominal
amount of this Global Note and of the Notes represented by this Global Note
following any such redemption, payment of an instalment or purchase and
cancellation or delivery as aforesaid or any exchange as referred to below shall
be the nominal amount most recently entered in the relevant column in Part II,
III or IV of Schedule One hereto or in Schedule Two hereto.

On any exchange of the Temporary Bearer Global Note (the "Temporary Bearer
Global Note") issued in respect of the Notes for this Global Note or any part
hereof, details of such exchange shall be entered by or on behalf of the Issuer
in Schedule Two hereto and the relevant space in Schedule Two hereto recording
such exchange shall be signed by or on behalf of the Issuer, whereupon the
nominal amount of this Global Note and the Notes represented by this Global Note
shall be increased by the nominal amount of the Temporary Bearer Global Note so
exchanged.

This Global Note may be exchanged (free of charge) in whole but not in part for
Definitive Bearer Notes and (if applicable) Receipts, Coupons and/or Talons in
or substantially in the forms set out in

--------------------------------------------------------------------------------
                                      103
<PAGE>

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

Parts IV, V, VI and VII of Schedule 2 to the Note Issuance Agreement (on the
basis that all the appropriate details have been included on the face of such
Definitive Notes and (if applicable) Receipts, Coupons and/or Talons and the
Pricing Supplement (or the relevant provisions thereof) has been incorporated in
or attached to such Definitive Bearer Notes) only upon the occurrence of an
Exchange Event. For these purposes, "Exchange Event" means that (i) an Event of
Default (as defined in Condition 10) has occurred and is continuing, (ii) the
Issuer has been notified that both Euroclear and Clearstream, Luxembourg have
been closed for business for a continuous period of 14 days (other than by
reason of holiday, statutory or otherwise) or have announced an intention
permanently to cease business or have in fact done so and no successor clearing
system is available or (iii) the Issuer has elected to exchange the Notes
represented by the Permanent Bearer Global Note for Definitive Bearer Notes.
Subject as aforesaid, the first notice referred to below given to the Agent by
Euroclear Bank S.A./N.V., as operator of the Euroclear system ("Euroclear")
and/or Clearstream Banking, societe anonyme ("Clearstream, Luxembourg") shall
give rise to the issue of Definitive Bearer Notes for the total amount of Notes
represented by this Global Note. Subject as aforesaid and to at least 45 days'
written notice (expiring at least 30 days after the Exchange Date (as defined in
the said Temporary Bearer Global Note)) being given to the Agent by Euroclear or
Clearstream, Luxembourg, such exchange will be made upon presentation of this
Global Note by the bearer hereof on any day (other than a Saturday or Sunday) on
which banks are open for business in London at the office of the Agent specified
above.

The aggregate nominal amount of Definitive Bearer Notes issued upon an exchange
of this Global Note will be equal to the aggregate nominal amount of this Global
Note submitted by the bearer hereof for exchange (to the extent that such
nominal amount does not exceed the nominal amount of this Global Note most
recently entered in the relevant column in Part II, III or IV of Schedule One
hereto or in Schedule Two hereto). On an exchange of the whole of this Global
Note, this Global Note shall be surrendered to the Agent. On an exchange of part
only of this Global Note, details of such exchange shall be entered by or on
behalf of the Issuer in Schedule Two hereto and the relevant space in Schedule
Two hereto recording such exchange shall be signed by or on behalf of the
Issuer, whereupon the nominal amount of this Global Note and the Notes
represented by this Global Note shall be reduced by the nominal amount of this
Global Note so exchanged.

Until the exchange of the whole of this Global Note as aforesaid, the bearer
hereof shall in all respects be entitled to the same benefits as if he were the
bearer of Definitive Bearer Notes and the relative Receipts, Coupons and/or
Talons (if any) in the form(s) set out in Parts IV, V, VI and VII (as
applicable) of Schedule 2 to the Note Issuance Agreement.

Each person who is for the time being shown in the records of Euroclear and/or
Clearstream, Luxembourg as the holder of a particular nominal amount of the
Notes represented by this Global Note (in which regard any certificate or other
document issued by Euroclear or Clearstream, Luxembourg as to the nominal amount
of such Notes standing to the account of any person shall be conclusive and
binding for all purposes save in the case of manifest error) shall be deemed to
be the holder of such nominal amount of such Notes for all purposes other than
with respect to payments of principal and interest on the Notes for which
purpose the bearer of this Global Note shall be deemed to be the holder of such
nominal amount of the Notes in accordance with and subject to the terms of this
Global Note and the Note Issuance Agreement. The Contracts (Rights of Third
Parties) Act 1999 applies to this paragraph of this Global Note.

In the event that this Global Note (or any part hereof) has become due and
repayable in accordance with the Conditions or that the Maturity Date or
Interest Payment Date falling in the month in which the Notes are to be redeemed
has occurred and, in either case, payment or delivery in full of the amount due
has not been made to the bearer in accordance with the foregoing then, unless
within the period of seven days commencing on the relevant due date payment or
delivery in full of the amount due in respect of this Global Note is received by
the bearer in accordance with the foregoing, this Global Note will become void
at 8.00 p.m. (London time) on such seventh day and the bearer will

--------------------------------------------------------------------------------
                                      104
<PAGE>

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

have no further rights under this Global Note (but without prejudice to the
rights which the bearer or any other person may have under the Deed of Covenant
executed by the Issuer on June 28, 2002 in respect of the Notes issued under the
Note Issuance Agreement pursuant to which this Global Note is issued).

This Global Note is governed by, and shall be construed in accordance with,
English law and the Issuer submits to the jurisdiction of the courts of England
for all purposes in connection with this Global Note.

This Global Note shall not be valid unless authenticated by JPMorgan Chase Bank
as Agent.

Except as expressly stated above, no rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
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 Issuer has caused this Global Note to be signed on its
behalf.

                              BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                              By:............................
                                    Duly Authorised

Authenticated by
JPMorgan Chase Bank

By:.......................
      Duly Authorised

--------------------------------------------------------------------------------
                                      105
<PAGE>

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

                                  Schedule One

                                     Part I

                                INTEREST PAYMENTS

                                                        Confirmation of
                   Total amount       Amount of         payment by or
Date               of interest        interest          on behalf of
made               payable            paid              the Issuer

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

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

                                      106
<PAGE>

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

                                     Part II

                          PAYMENT OF INSTALMENT AMOUNTS

                                              Remaining nominal   Confirmation
                                              amount of this      of payment by
           Total amount of    Amount of       Global Note         or on behalf
Date       Instalment         Instalment      following such      of the
made       Amounts payable    Amounts paid    payment(1)          Issuer

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

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                      107
<PAGE>

                                    Part III

             REDEMPTIONS AND DELIVERY OF CASH OR SECURITIES AMOUNTS

<TABLE>
<CAPTION>
                                               Remaining
                                               nominal
                                               amount of
                                               this Global          Confirmation
           Total amount        Amount paid     Note                 of redemption
           payable or number   or number       following            by or on
Date       of securities       of securities   such redemption      behalf of the
made       Deliverable         delivered       and/or delivery(1)   Issuer
<S>        <C>                 <C>             <C>                  <C>
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
--------   ---------------     ------------    -----------------    -----------------
</TABLE>

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                      108
<PAGE>

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

                                     Part IV

                           PURCHASES AND CANCELLATIONS

                                Remaining nominal
              Part of nominal   amount of this         Confirmation of
              amount of this    Global Note            purchase and
              Global Note       following such         cancellation by or
Date          purchase and      purchase and           on behalf of the
made          cancelled         cancellation(1)        Issuer

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

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                      109
<PAGE>

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

                                  Schedule Two

                              SCHEDULE OF EXCHANGES

The following exchanges affecting the nominal amount of this Global Note have
been made:

           Nominal amount
           of Temporary            Nominal amount       Notation
           Bearer Global           of this Global       made by or
Date       Note exchanged          Note following       on behalf
made       for this Global Note    such exchange(1)     of the Issuer

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

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                      110
<PAGE>

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

                                    PART III

                        FORMS OF REGISTERED GLOBAL NOTES

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF, ON ITS OWN BEHALF AND ON
BEHALF OF ANY ACCOUNT FOR WHICH IT IS PURCHASING THIS NOTE OR ANY INTEREST OR
PARTICIPATION HEREIN, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE OR
ANY INTEREST OR PARTICIPATION HEREIN ONLY TO, OR FOR THE ACCOUNT OR BENEFIT OF,
(A) THE ISSUER OR A DEALER (AS DEFINED IN THE OFFERING CIRCULAR FOR THE NOTE),
(B) A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT), (C) AN "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(1),
(2), (3) OR (7) UNDER THE SECURITIES ACT) THAT IS AN INSTITUTION AND THAT, PRIOR
TO SUCH TRANSFER, SHALL HAVE FURNISHED TO SUCH HOLDER AND TO THE ISSUER OF THIS
NOTE A WRITTEN CERTIFICATION CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER
CAN BE OBTAINED FROM THE REGISTRAR AND THE TRANSFER AGENTS), (D) OUTSIDE THE
UNITED STATES IN A TRANSACTION WHICH MEETS THE REQUIREMENTS OF RULE 904 UNDER
THE SECURITIES ACT, (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. UPON ANY TRANSFER OF THIS NOTE
OR ANY INTEREST OR PARTICIPATION HEREIN PURSUANT TO CLAUSE [(B),](1) (C)[,
(D)](2) OR (F) ABOVE, THE HOLDER WILL BE REQUIRED TO FURNISH TO THE ISSUER, THE
REGISTRAR AND THE TRANSFER AGENTS SUCH CERTIFICATIONS (WHICH IN THE CASE OF
TRANSFERS PURSUANT TO CLAUSES [(B),](1) (C)[,(D)](2) OR (F) ABOVE, CAN BE
OBTAINED FROM THE REGISTRAR AND THE TRANSFER AGENTS), LEGAL OPINIONS OR OTHER
INFORMATION AS ANY OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER
IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER WILL ALSO BE
REQUIRED TO DELIVER TO THE TRANSFEREE OF THIS NOTE OR ANY INTEREST OR
PARTICIPATION THEREIN A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. ANY
RESALE OR OTHER TRANSFER OR ATTEMPTED RESALE OR OTHER TRANSFER OF THIS NOTE MADE
OTHER THAN IN COMPLIANCE WITH THE FOREGOING RESTRICTION SHALL NOT BE RECOGNISED
BY THE ISSUER, THE REGISTRAR, THE TRANSFER AGENTS OR ANY OTHER AGENT OF THE
ISSUER.

[THE RESTRICTIONS IN THE PRECEDING PARAGRAPH SHALL ONLY APPLY DURING THE PERIOD
WHICH ENDS 40 DAYS AFTER COMPLETION OF DISTRIBUTION OF THE NOTES AS CERTIFIED BY
THE RELEVANT DEALER OR

-------------
(1)   To be included in the Reg. S Global Note only.
(2)   To be included in the Restricted Global Note only.

--------------------------------------------------------------------------------
                                      111
<PAGE>

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

DEALERS, IN THE CASE OF A NON-SYNDICATED ISSUE, OR AS CERTIFIED BY THE RELEVANT
LEAD MANAGER, IN THE CASE OF A SYNDICATED ISSUE.](1)

[UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORISED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY REGISTERED NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUIRED BY AN AUTHORISED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORISED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.](2)

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                       (Incorporated under the laws of the
                                 Cayman Islands)

                         Unconditionally and irrevocably
                                  guaranteed by

                         THE BEAR STEARNS COMPANIES INC.

                       (Incorporated under the laws of the
                               State of Delaware,
                            United States of America)

                                   GLOBAL NOTE

Bear Stearns Global Asset Holdings, Ltd. (the "Issuer") hereby certifies that
            is, at the date hereof, entered in the Register as the holder of the
aggregate Nominal Amount of                               of a duly authorised
issue of Notes (the "Notes") of the Nominal Amount, Specified Currency(ies) and
Specified Denomination(s) specified in the Pricing Supplement applicable to the
Notes (the "Pricing Supplement"), a copy of which is attached hereto, of the
Issuer. The Notes are unconditionally and irrevocably guaranteed by The Bear
Stearns Companies Inc. (the "Guarantor"). References herein to the Conditions
shall be to the Conditions of the Notes as set out in Schedule 1 to the Note
Issuance Agreement (as defined below) but, in the event of any conflict between
the provisions of the said Terms and Conditions and the information in the
Pricing Supplement, the information in the Pricing Supplement shall prevail.
Words and expressions defined in the Conditions shall bear the same meanings
when used in this Global Note. This Global Note is issued subject to, and with
the benefit of, the Conditions and an Amended and Restated Note Issuance
Agreement dated June 28, 2002 (as amended and/or restated and/or supplemented
from time to time, the "Note Issuance Agreement") and made between (inter alios)
the Issuer, the Guarantor and JPMorgan Chase Bank as Agent.

-------------
(1)   Reg. S Global Note Only.
(2)   To be included in a Registered Global Note registered in the name of Cede
      & Co. as nominee (or another nominee) of The Depository Trust Company.

--------------------------------------------------------------------------------
                                      112
<PAGE>

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

The Issuer, subject to and in accordance with the Conditions and the Note
Issuance Agreement, promises: (i) to pay to such registered holder on each
Instalment Date (if the Notes are repayable in instalments) and on the Maturity
Date and/or the Interest Payment Date falling in the month in which the Notes
are to be redeemed and/or on such earlier date(s) as all or any of the Notes
represented by this Global Note may become due and repayable in accordance with
the Conditions and the Note Issuance Agreement, the amount payable under the
Conditions in respect of such Notes on each such date and to pay interest (if
any) on the nominal amount of the Notes from time to time represented by this
Global Note calculated and payable as provided in the Conditions and the Note
Issuance Agreement together with any other sums payable under the Conditions and
the Note Issuance Agreement, upon presentation and, at maturity, surrender of
this Global Note at the specified office of the Registrar at 450 West 33rd
Street, 15th Floor, New York, N.Y. 10001, United States of America or such other
office as may be specified by the Issuer and approved by the Agent; and (ii) in
the event that any Securities Amounts fall to be delivered under the Conditions,
to pay and deliver such Securities Amounts in accordance with the Conditions. On
any redemption or payment of an instalment or interest being made in respect of,
or purchase and cancellation of or payment or delivery of any Securities Amount
in respect of, any of the Notes represented by this Global Note details of such
redemption, payment or purchase and cancellation or delivery (as the case may
be) shall be entered by or on behalf of the Issuer in Schedule One hereto and
the relevant space in Schedule One hereto recording any such redemption, payment
or purchase and cancellation or delivery (as the case may be) shall be signed by
or on behalf of the Issuer. Upon any such redemption, payment of an instalment
or purchase and cancellation or delivery the nominal amount of this Global Note
and the Notes held by the registered holder hereof shall be reduced by the
nominal amount of such Notes so redeemed or purchased and cancelled or the
amount of such instalment or the amount of Notes in respect of which such
delivery has been made. The nominal amount of this Global Note and of the Notes
held by the registered holder hereof following any such redemption, payment or
delivery of an instalment or purchase and cancellation as aforesaid or any
transfer or exchange as referred to below shall be the nominal amount most
recently entered in the relevant column in Part II, III or IV of Schedule One
hereto or in Schedule Two hereto.

Notes represented by this Global Note are exchangeable and transferable only in
accordance with, and subject to, the provisions hereof and of Condition 12 and
the rules and operating procedures of Euroclear Bank S.A./N.V., as operator of
the Euroclear system ("Euroclear"), Clearstream Banking, societe anonyme
("Clearstream, Luxembourg") and The Depository Trust Company ("DTC").

On any exchange or transfer as aforesaid pursuant to which either: (i) Notes
represented by this Global Note are no longer to be so represented; or (ii)
Notes not so represented are to be so represented details of such transfer shall
be entered by or on behalf of the Issuer in Schedule Two hereto and the relevant
space in Schedule Two hereto recording such transfer shall be signed by or on
behalf of the Issuer, whereupon the nominal amount of this Global Note and the
Notes held by the registered holder hereof shall be increased or reduced (as the
case may be) by the nominal amount so transferred.

Subject as provided in the following paragraph, until the exchange of the whole
of this Global Note as aforesaid, the registered holder hereof shall in all
respects be entitled to the same benefits as if he were the registered holder of
Definitive Registered Notes in the form set out in Part IV B of Schedule 2 to
the Note Issuance Agreement.

Subject as provided in the Note Issuance Agreement, each person who is for the
time being shown in the records of Euroclear and/or Clearstream, Luxembourg
and/or DTC as entitled to particular nominal amount of the Notes represented by
this Global Note (in which regard any certificate or other document issued by
Euroclear, Clearstream, Luxembourg or DTC as to the nominal amount of such Notes
standing to the account of any person shall be conclusive and binding for all
purposes save in the case of manifest error) shall be deemed to be the holder of
such nominal amount of such Notes for all purposes other than with respect to
payments of principal and interest on the Notes for which

--------------------------------------------------------------------------------
                                      113
<PAGE>

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

purpose the registered holder of this Global Note shall be deemed to be the
holder of such nominal amount of the Notes in accordance with and subject to the
terms of this Global Note and the Note Issuance Agreement.

This Global Note is governed by, and shall be construed in accordance with,
English law and the Issuer submits to the jurisdiction of the courts of England
for all purposes in connection with this Global Note.

This Global Note shall not be valid unless authenticated by JPMorgan Chase Bank
as Registrar.

Except as expressly stated above, no rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
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 Issuer has caused this Global Note to be signed on its
behalf.

                                    BEAR STEARNS GLOBAL ASSET
                                    HOLDINGS, LTD.

                                    By:......................
                                            Duly Authorised

Authenticated by
JPMorgan Chase Bank

By:................................
          Duly Authorised

--------------------------------------------------------------------------------
                                      114
<PAGE>

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

                                  Schedule One

                                     Part I

                                INTEREST PAYMENTS

                                                         Confirmation of
                    Total amount       Amount of         payment by or
Date                of interest        interest          on behalf of
made                payable            paid              the Issuer

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

--------------------------------------------------------------------------------
                                      115
<PAGE>

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

                                     Part II

                          PAYMENT OF INSTALMENT AMOUNTS

                                              Remaining nominal   Confirmation
                                              amount of this      of payment by
           Total amount of    Amount of       Global Note         or on behalf
Date       Instalment         Instalment      following such      of the
made       Amounts payable    Amounts paid    payment(1)          Issuer

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

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                      116
<PAGE>

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

                                    Part III

             REDEMPTIONS AND DELIVERY OF CASH OR SECURITIES AMOUNTS

<TABLE>
<CAPTION>
                                                  Remaining
                                                  nominal
                                                  amount of
                                                  this Global          Confirmation
           Total amount          Amount paid      Note                 of redemption
           payable or number     or number of     following            by or on
Date       of securities         securities       such redemption      behalf of the
made       deliverable           delivered        and/or delivery(1)   Issuer
<S>        <C>                   <C>              <C>                  <C>
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------
------     -------------         ----------       --------------       ------------

</TABLE>

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                      117
<PAGE>

                                     Part IV

                           PURCHASES AND CANCELLATIONS

                                Remaining nominal
              Part of nominal   amount of this          Confirmation of
              amount of this    Global Note             purchase and
              Global Note       following such          cancellation by or
Date          purchased and     Purchase and            on behalf of the
made          cancelled         cancellation(1)         Issuer

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

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                       118
<PAGE>

                                  Schedule Two

                       SCHEDULE OF EXCHANGES AND TRANSFERS

The following exchanges and transfers affecting the nominal amount of this
Global Note have been made:

<TABLE>
<CAPTION>
                              Nominal amount
                              of this Global
                              Note exchanged
                              for Definitive
                              Registered Notes
                              or another
                              Global
                              Note/Definitive
                              Registered Notes   Remaining/increased
                              or nominal         nominal amount
                              amount of other    of  this Global
           Nominal amount     Global Note        Note following     Notation made
Date       of Notes           exchanged for      such transfer or   by or on behalf
made       transferred        this Global Note   exchange(1)        of the Issuer
<S>        <C>                <C>                <C>                <C>
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
------     ------------       --------------     ---------------    ----------
</TABLE>

-------------
(1)   See most recent entry in Part II, III or IV or Schedule Two in order to
      determine this amount.

--------------------------------------------------------------------------------
                                      119
<PAGE>

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

                                    PART IV A

                         FORM OF DEFINITIVE BEARER NOTE

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED
STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE
UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS
165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

[THIS NOTE RELATES TO NOTES WITH A MATURITY OF NOT MORE THAN 183 DAYS FROM THE
DATE OF ISSUE. BY ACCEPTING THIS OBLIGATION THE HOLDER REPRESENTS AND WARRANTS
THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED
IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE AND REGULATIONS THEREUNDER)
AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATES PERSON (OTHER THAN
AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE
AND REGULATIONS THEREUNDER).](1)

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                         (Incorporated under the laws of
                               the Cayman Islands)

                     [Specified Currency and Nominal Amount
                                   of Tranche]
                                    NOTES DUE
                               [Year of Maturity]

                         Unconditionally and irrevocably
                                  guaranteed by

                         THE BEAR STEARNS COMPANIES INC.

                       (Incorporated under the laws of the
                               State of Delaware,
                            United States of America)

                               Series No. [    ]

This Note is one of a Series of Notes of [Specified Currency(ies) and Specified
Denomination(s)] each ("Notes") of Bear Stearns Global Asset Holdings, Ltd. (the
"Issuer") issued as Bearer Notes in the denomination[s] of [Specified
Currency(ies) and Specified Denomination(s)] each [with Coupons] [and Receipts]
[attached]. The Notes are unconditionally and irrevocably guaranteed by The Bear
Stearns Companies Inc. (the "Guarantor"). References herein to the Conditions
shall be to the Terms and Conditions [incorporated herein]/[set out in Schedule
1 to the Note Issuance Agreement (as defined below) which shall be incorporated
by reference herein and have effect as if set out hereon] as modified and
supplemented by the Pricing Supplement (the "Pricing Supplement") (or the
relevant provisions thereof) incorporated herein but, in the event of any
conflict between the provisions of the said Terms and Conditions and the
information in the Pricing Supplement, the Pricing Supplement will prevail.
Words and expressions defined in the Conditions shall bear the

-------------
(1)   To be included only on Notes with a maturity of not more than 183 days
      from their date of issue.

--------------------------------------------------------------------------------
                                      120
<PAGE>

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

same meanings when used in this Note. This Note is issued subject to, and with
the benefit of, the Conditions and an Amended and Restated Note Issuance
Agreement dated June 28, 2002 (as amended and/or restated and/or supplemented
from time to time, the "Note Issuance Agreement") and made between (inter alios)
the Issuer, the Guarantor and JPMorgan Chase Bank as Agent.

The Issuer, subject to and in accordance with the Conditions and the Note
Issuance Agreement, promises: (i) to pay to the bearer hereof on [each
Instalment Date and] [the Maturity Date] [the Interest Payment Date falling in
the month in which the Notes are to be redeemed] or on such earlier date as this
Note may become due and repayable in accordance with the Conditions and the Note
Issuance Agreement, the amount payable on redemption of this Note and to pay
interest (if any) on the nominal amount of this Note calculated and payable as
provided in the Conditions and the Note Issuance Agreement together with any
other sums payable under the Conditions and the Note Issuance Agreement; and
(ii) in the event that any Securities Amount falls to be paid or delivered under
the Conditions, to pay or deliver such Securities Amount in accordance with the
Conditions.

Title to this Note and to any Receipt, Coupon or Talon appertaining hereto shall
pass by delivery. The Issuer and the Guarantor may treat the bearer hereof as
the absolute owner of this Note for all purposes (whether or not this Note shall
be overdue and notwithstanding any notice of ownership or writing hereon or
notice of any previous loss or theft or trust or other interest herein).

This Note shall not be valid unless authenticated by JPMorgan Chase Bank as
Agent.

IN WITNESS whereof the Issuer has caused this Note to be signed on its behalf.

                              BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                              By: .....................
                                    Duly Authorised

Authenticated by
JPMorgan Chase Bank

By: ......................
      Duly Authorised

--------------------------------------------------------------------------------
                                      121
<PAGE>

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

                                  [Conditions]

[Conditions to be as set out in Schedule 1 to this Note Issuance Agreement, but
          shall not be endorsed if not required by the Stock Exchange]

--------------------------------------------------------------------------------
                                      122
<PAGE>

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

                               Pricing Supplement

   [Here to be set out text of Pricing Supplement (or the relevant provisions
                         thereof) relating to the Notes]

--------------------------------------------------------------------------------
                                       123
<PAGE>

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

                                    PART IV B

                       FORM OF DEFINITIVE REGISTERED NOTE

[THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF, ON ITS OWN BEHALF AND ON
BEHALF OF ANY ACCOUNT FOR WHICH IT IS PURCHASING THIS NOTE OR ANY INTEREST OR
PARTICIPATION HEREIN, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE OR
ANY INTEREST OR PARTICIPATION HEREIN ONLY TO, OR FOR THE ACCOUNT OR BENEFIT OF,
(A) THE ISSUER OR A DEALER (AS DEFINED IN THE OFFERING CIRCULAR FOR THE NOTE),
(B) A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT), (C) AN "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(1),
(2), (3) OR (7) UNDER THE SECURITIES ACT) THAT IS AN INSTITUTION AND THAT, PRIOR
TO SUCH TRANSFER, SHALL HAVE FURNISHED TO SUCH HOLDER AND TO THE ISSUER OF THIS
NOTE A WRITTEN CERTIFICATION CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER
CAN BE OBTAINED FROM THE REGISTRAR AND THE TRANSFER AGENTS), (D) OUTSIDE THE
UNITED STATES IN A TRANSACTION WHICH MEETS THE REQUIREMENTS OF RULE 904 UNDER
THE SECURITIES ACT, (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. UPON ANY TRANSFER OF THIS NOTE
OR ANY INTEREST OR PARTICIPATION HEREIN PURSUANT TO CLAUSE (C), (D) OR (F)
ABOVE, THE HOLDER WILL BE REQUIRED TO FURNISH TO THE ISSUER, THE REGISTRAR AND
THE TRANSFER AGENTS SUCH CERTIFICATIONS (WHICH IN THE CASE OF TRANSFERS PURSUANT
TO CLAUSES (C), (D) OR (F) ABOVE CAN BE OBTAINED FROM THE REGISTRAR AND THE
TRANSFER AGENTS), LEGAL OPINIONS OR OTHER INFORMATION AS ANY OF THEM MAY
REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER WILL ALSO BE REQUIRED TO DELIVER
TO THE TRANSFEREE OF THIS NOTE OR ANY INTEREST OR PARTICIPATION THEREIN A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. ANY RESALE OR OTHER TRANSFER OR
ATTEMPTED RESALE OR OTHER TRANSFER OF THIS NOTE MADE OTHER THAN IN COMPLIANCE
WITH THE FOREGOING RESTRICTION SHALL NOT BE RECOGNISED BY THE ISSUER, THE
REGISTRAR, THE TRANSFER AGENTS OR ANY OTHER AGENT OF THE ISSUER.](1)

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

-------------
(1)   To be included only on Registered Notes issued in exchange for a
      Restricted Global Note or to Institutional Accredited Investors in
      accordance with the Note Issuance Agreement.

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                         (Incorporated under the laws of
                               the Cayman Islands)

                     [Specified Currency and Nominal Amount
                                   of Tranche]
                                    NOTES DUE
                               [Year of Maturity]

                         Unconditionally and irrevocably
                                  guaranteed by

                         THE BEAR STEARNS COMPANIES INC.

                       (Incorporated under the laws of the
                               State of Delaware,
                            United States of America)

                                Series No. [   ]

                                                                  [Denomination]

This Note is one of a Series of Notes of [Specified Currency(ies) and Specified
Denomination(s)] each ("Notes") of Bear Stearns Global Asset Holdings, Ltd. (the
"Issuer") issued [either] [as Bearer Notes in the denomination[s] of [Specified
Currency(ies) and Specified Denomination(s)] each [with Coupons] [and Receipts]
[attached] [or] [as Registered Notes] in the denomination of [Specified
Currency(ies) and Specified Denomination(s)] in an aggregate principal amount of
[Nominal Amount of Tranche]. The Notes are unconditionally and irrevocably
guaranteed by The Bear Stearns Companies Inc. (the "Guarantor"). References
herein to the Conditions shall be to the Terms and Conditions [incorporated
herein/[set out in Schedule 1 to the Note Issuance Agreement (as defined below)]
which shall be incorporated by reference herein and have effect as if set out
hereon] as modified and supplemented by the Pricing Supplement (the "Pricing
Supplement") (or the relevant provisions thereof) incorporated herein but, in
the event of any conflict between the provisions of the said Terms and
Conditions and the information in the Pricing Supplement, the Pricing Supplement
will prevail. Words and expressions defined in the Conditions shall bear the
same meanings when used in this Note. This Note is issued subject to, and with
the benefit of, the Conditions and an Amended and Restated Note Issuance
Agreement dated June 28, 2002 (as amended and/or restated and/or supplemented
from time to time, the "Note Issuance Agreement") and made between (inter alios)
the Issuer, the Guarantor and JPMorgan Chase Bank as Agent.

THIS IS TO CERTIFY that                         is/are the registered holder(s)
of one of the above-mentioned Registered Notes and is/are entitled on [each
Instalment Date] [the Maturity Date] [the Interest Payment Date falling in the
month in which the Notes are to be redeemed] or on such earlier date as this
Note may become due and repayable in accordance with the Conditions and the Note
Issuance Agreement, to the amount payable and/or Securities Amount(s) (if any)
deliverable on redemption of this Note in accordance with the Conditions and
interest (if any) on the nominal amount of this Note calculated and payable as
provided in the Conditions and the Note Issuance

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Agreement together with any other sums payable or deliverable under the
Conditions and the Note Issuance Agreement.

This Note shall not be valid unless authenticated by JPMorgan Chase Bank as
Registrar.

Except as expressly stated above, no rights are conferred on any person under
the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
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 Issuer has caused this Note to be signed in facsimile on
its behalf.

                              BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                              By: ........................
                                    Duly Authorised

Authenticated by
JPMorgan Chase Bank

By: ......................
      Duly Authorised

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                                      126
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                     - FORM OF TRANSFER OF REGISTERED NOTE -

FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) to
.................................................................................

.................................................................................

.................................................................................

(Please print or type name and address (including postal code) of transferee)

[Specified Currency][      ] nominal amount of this Note and all rights
hereunder, hereby irrevocably constituting and appointing
.......................................................... as attorney to
transfer such principal amount of this Note in the register maintained by BEAR
STEARNS GLOBAL ASSET HOLDINGS, LTD. with full power of substitution.

                              Signature(s)..................

                                          ..................

Date: .................

N.B.:

1.    This form of transfer must be accompanied by such documents, evidence and
      information as may be required pursuant to 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.    In each case the signature(s) must be guaranteed by a commercial bank with
      a correspondent bank in New York City, Luxembourg or London or by an
      institution which is a member of The New York Stock Exchange or The
      American Stock Exchange in New York City or the Luxembourg Stock Exchange
      or the London Stock Exchange.

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 Note in every particular, without
      alteration or enlargement or any change whatever.

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                                      127
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                               Pricing Supplement

   [Here to be set out text of Pricing Supplement (or the relevant provisions
                         thereof) relating to the Notes]

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                                       128
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--------------------------------------------------------------------------------

                                  [Conditions]

[Conditions to be as set out in Schedule 1 to this Note Issuance Agreement but
shall not be endorsed if not required by the Stock Exchange]

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                                      129
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                                     PART V

                                 FORM OF RECEIPT

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED
STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE
UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS
165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

[THIS RECEIPT RELATES TO NOTES WITH A MATURITY OF NOT MORE THAN 183 DAYS FROM
THE DATE OF ISSUE. BY ACCEPTING THIS OBLIGATION THE HOLDER REPRESENTS AND
WARRANTS THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT
DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE AND REGULATIONS
THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATES PERSON
(OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL
REVENUE CODE AND REGULATIONS THEREUNDER).](1)

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                         (Incorporated under the laws of
                               the Cayman Islands)

               [Specified Currency and Nominal Amount of Tranche]
                          NOTES DUE [Year of Maturity]

                         Unconditionally and irrevocably
                                  guaranteed by

                         THE BEAR STEARNS COMPANIES INC.

                       (Incorporated under the laws of the
                               State of Delaware,
                            United States of America)

                              Series No. [       ]

Receipt for the sum of [      ] being the instalment of principal payable in
accordance with the Terms and Conditions endorsed on the Note to which this
Receipt appertains (the "Conditions") on [      ].

This Receipt is issued subject to and in accordance with the Conditions which
shall be binding upon the holder of this Receipt (whether or not it is for the
time being attached to such Note) and is payable at the specified office of any
of the Paying Agents set out on the reverse of the Note to which this Receipt
appertains (and/or any other or further Paying Agents and/or specified offices
as may from time to time be duly appointed and notified to the Noteholders).

-------------
(1)   To be included only on Notes with a maturity of not more than 183 days
      from their date of issue.

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This Receipt must be presented for payment together with the Note to which it
appertains. The Issuer and the Guarantor shall have no obligation in respect of
any Receipt presented without the Note to which it appertains or any unmatured
Receipts.

                              BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                              By: .......................
                                    Duly Authorised

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                                     PART VI

                                 FORM OF COUPON
ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED
STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE
UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS
165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

[THIS COUPON RELATES TO NOTES WITH A MATURITY OF NOT MORE THAN 183 DAYS FROM THE
DATE OF ISSUE. BY ACCEPTING THIS OBLIGATION THE HOLDER REPRESENTS AND WARRANTS
THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED
IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE AND REGULATIONS THEREUNDER)
AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATES PERSON (OTHER THAN
AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE
AND REGULATIONS THEREUNDER).](1)

On the front:

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                         (Incorporated under the laws of
                               the Cayman Islands)

               [Specified Currency and Nominal Amount of Tranche]
                                    NOTES DUE
                               [Year of Maturity]

                         Unconditionally and irrevocably
                                  guaranteed by

                         THE BEAR STEARNS COMPANIES INC.

                       (Incorporated under the laws of the
                               State of Delaware,
                            United States of America)

                               Series No. [   ]

(2) [Coupon appertaining to a Note in the denomination of [Specified Currency
and Specified Denomination]].

                                     Part A

[For Fixed Rate Notes:

This Coupon is payable to bearer, separately        Coupon for
negotiable and subject to the Terms and             [     ]
Conditions of the said Notes.                       due on
                                                    [    ], [   ]]

-------------
(1)   To be included only on Notes with a maturity of not more than 183 days
      from their date of issue.

(2)   Delete where the Notes are all of the same denomination.

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                                     Part B

[For Floating Rate Notes or Indexed Interest Notes:

Coupon for the amount due in accordance with    Coupon due
the Terms and Conditions endorsed on,           in [    ] [    ]
attached to or incorporated by reference
into the said Notes on the Interest Payment
Date falling in [    ] [    ].

This Coupon is payable to bearer, separately
negotiable and subject to such Terms and
Conditions, under which it may become void
before its due date.]

                              BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                              By: ...........................
                                         Duly Authorised

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                                    PART VII

                                  FORM OF TALON

ANY UNITED STATES PERSON (AS DEFINED IN THE INTERNAL REVENUE CODE OF THE UNITED
STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO THE LIMITATIONS UNDER THE
UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS
165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

[THIS TALON RELATES TO NOTES WITH A MATURITY OF NOT MORE THAN 183 DAYS FROM THE
DATE OF ISSUE. BY ACCEPTING THIS OBLIGATION THE HOLDER REPRESENTS AND WARRANTS
THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED
IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE AND REGULATIONS THEREUNDER)
AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATES PERSON (OTHER THAN
AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(b)(4) OF THE INTERNAL REVENUE CODE
AND REGULATIONS THEREUNDER).](1)

On the front:

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                         (Incorporated under the laws of
                               the Cayman Islands)

               [Specified Currency and Nominal Amount of Tranche]
                                    NOTES DUE
                               [Year of Maturity]

                         Unconditionally and irrevocably
                                  guaranteed by

                         THE BEAR STEARNS COMPANIES INC.

                       (Incorporated under the laws of the
                               State of Delaware,
                            United States of America)

                               Series No. [    ]

(2)[Talon appertaining to a Note in the denomination of [Specified Currency and
Specified Denomination]].

On and after [      ] further Coupons(3) [and a further Talon] appertaining to
the Note to which this Talon appertains will be issued at the specified office
of any of the Paying Agents set out on the reverse hereof (and/or any other or
further Paying Agents and/or specified offices as may from time to time be duly
appointed and notified to the Noteholders) upon production and surrender of this
Talon.

-------------
(1)   To be included only on Notes with a maturity of not more than 183 days
      from their date of issue.

(2)   Delete where the Notes are all of the same denomination.

(3)   Not required on last Coupon sheet.

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This Talon may, in certain circumstances, become void under the Terms and
Conditions endorsed on the Note to which this Talon appertains.

                              BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                              By: ..........................
                                         Duly Authorised

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On the back of Receipts, Coupons and Talons:

                                      AGENT

                               JPMorgan Chase Bank
                                  Trinity Tower
                              9 Thomas More Street
                                 London E1W 1YT

                                  PAYING AGENTS

      JPMorgan Chase Bank                Kredietbank S.A. Luxembourgeoise
      Trinity Tower                      43, Boulevard Royal
      9 Thomas More Street               L-2955 Luxembourg
      London E1W 1YT                     R.C. Luxembourg B6393

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                                      136
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                                    PART VIII

                     FORM OF CERTIFICATE TO BE PRESENTED BY
                      EUROCLEAR OR CLEARSTREAM, LUXEMBOURG

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                                [Title of Notes]

                               (the "Securities")

This is to certify that, based solely on certifications we have received in
writing, by tested telex or by electronic transmission from member organisations
appearing in our records as persons being entitled to a portion of the nominal
amount set forth below (our "Member Organisations") substantially to the effect
set forth in the temporary global note representing the Securities, as of the
date hereof, [   ] nominal amount of the above-captioned Securities: (i) is
owned by persons that are not citizens or residents of the United States,
domestic partnerships, domestic corporations, any estate the income of which is
subject to United States Federal income taxation regardless of its source or any
trust if a court within the United States is able to exercise primary
supervision of the administration of the trust and one or more United States
persons have authority to control all substantial decisions of the trust
("United States persons"); (ii) is owned by United States persons that (a) are
foreign branches of United States financial institutions (as defined in U.S.
Treasury Regulations Sections 1.165-12(c)(1)(iv) ("financial institutions")
purchasing for their own account or for resale, or (b) acquired the Securities
through foreign branches of United States financial institutions and who hold
the Securities through such United States financial institutions on the date
hereof (and in either case (a) or (b), each such United States financial
institution has agreed, on its own behalf or through its agent, that we may
advise the Issuer or the Issuer's agent that it will comply with the
requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of
1986, as amended, and the regulations thereunder); or (iii) is owned by United
States or foreign financial institutions for purposes of resale during the
restricted period (as defined in U.S. Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and to the further effect that United States or foreign
financial institutions described in clause (iii) above (whether or not also
described in clause (i) or (ii)) have certified that they have not acquired the
Securities for purposes of resale directly or indirectly to a United States
person or to a person within the United States or its possessions (unless such
Security is a Registered Note and is to be sold in accordance with the private
placement restrictions set forth in the Prospectus relating to the Securities).

As used herein, "United States" means the United States of America (including
the States and the District of Columbia); and its "possessions" include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and Northern
Mariana Islands.

We further certify: (i) that we are not making available herewith for exchange
(or, if relevant, exercise of any rights or collection of any interest) any
portion of the temporary global note excepted in such certifications; and (ii)
that as of the date hereof we have not received any notification from any of our
Member Organisations to the effect that the statements made by such Member
Organisations with respect to any portion of the part submitted herewith for
exchange (or, if relevant, exercise of any rights or collection of any interest)
are no longer true and cannot be relied upon as of the date hereof.

We understand that this certification is required in connection with certain tax
laws and, if applicable, certain securities laws of the United States. In
connection therewith, if administrative or legal proceedings or official
enquiries are commenced or threatened in connection with which this

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                                      137
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--------------------------------------------------------------------------------

certification is or would be relevant, we irrevocably authorise you to produce
this certification to any interested party in such proceedings or enquiries.

Dated:        , (1)

                                          Yours faithfully,

                                          [EUROCLEAR BANK S.A./N.V.,
                                          as operator of the Euroclear
                                          system]

                                                      or

                                          [CLEARSTREAM BANKING, societe
                                          anonyme]

                                          By: ................

-------------
(1)   To be dated no earlier than the date to which this certification relates,
      namely (a) the payment date or (b) the Exchange Date.

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                                      138
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--------------------------------------------------------------------------------

                                 CERTIFICATE "A"

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                                [Title of Notes]

                               (the "Securities")

This is to certify that as of the date hereof, and except as set forth below,
the above-captioned Securities held by you for our account:

(i)   are owned by person(s) that are not citizens or residents of the United
      States, domestic partnerships, domestic corporations, any estate the
      income of which is subject to United States Federal income taxation
      regardless of its source or any trust if a court within the United States
      is able to exercise primary supervision of the administration of the trust
      and one or more United States persons have authority to control all
      substantial decisions of the trust ("United States person(s)");

(ii)  are owned by United States person(s) that (a) are foreign branches of
      United States financial institutions (as defined in U.S. Treasury
      Regulations Section 1.165-12(c)(1)(iv)) ("financial institutions")
      purchasing for their own account or for resale, or (b) acquired the
      Securities through foreign branches of United States financial
      institutions and who hold the Securities through such United States
      financial institutions on the date hereof (and in either case (a) or (b),
      each such United States financial institution hereby agrees, on its own
      behalf or through its agent, that you may advise the Issuer or the
      Issuer's agent that it will comply with the requirements of Section
      165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as amended,
      and the regulations thereunder), or (iii) are owned by United States or
      foreign financial institution(s) for purposes of resale during the
      restricted period (as defined in U.S. Treasury Regulations Section
      1.163-5(c)(2)(i)(D)(7)), and in addition if the owner of the Securities is
      a United States or foreign financial institution described in clause (iii)
      above (whether or not also described in clause (i) or (ii)) this is to
      further certify that such financial institution has not acquired the
      Securities for purposes of resale directly or indirectly to a United
      States person or to a person within the United States or its possessions.

As used herein, "United States" means the United States of America (including
the States and the District of Columbia); and its "possessions" include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands.

We undertake to advise you promptly by tested telex on or prior to the date on
which you intend to submit your certification relating to the Securities held by
you for our account in accordance with your documented procedures if any
applicable statement herein is not correct on such date, and in the absence of
any such notification it may be assumed that this certification applies as of
such date.

This certification excepts and does not relate to [    ] of such interest in the
above Securities in respect of which we are not able to certify and as to which
we understand exchange and delivery of definitive Securities (or, if relevant,
exercise of any right or collection of any interest) cannot be made until we do
so certify.

We understand that this certification is required in connection with certain tax
laws and, if applicable, certain securities laws of the United States. In
connection therewith, if administrative or legal proceedings or official
enquiries are commenced or threatened in connection with which this

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                                      139
<PAGE>

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

certification is or would be relevant, we irrevocably authorise you to produce
this certification to any interested party in such proceedings or enquiries.

Dated:         , (1)

Name of Person Making Certification

By: .......................

-------------
(1)   To be dated no earlier than the fifteenth day prior to the date to which
      this certification relates, namely (a) the payment date or (b) the
      Exchange Date.

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                                      140
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                                   SCHEDULE 3

                     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 Bearer Notes (whether in
                        definitive form or represented by a Global Note and not
                        being Bearer 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
                        deposited with such Paying Agent or (to the satisfaction
                        of such Paying Agent) were held to its order or under
                        its control and that no such Bearer Notes will cease to
                        be so deposited or held until the first to occur of:

                        (1)   the conclusion of the meeting specified in such
                              certificate or, if later, of any adjourned such
                              meeting; and

                        (2)   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 Bearer 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 Bearer Notes (whether in definitive
                        form or represented by a Global Note and not being
                        Bearer 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) have been deposited with
                        such Paying Agent or (to the satisfaction of such Paying
                        Agent) were held to its order or under its control and
                        that no such Bearer Notes will cease to be so deposited
                        or held until the first to occur of:

                        (1)   the conclusion of the meeting specified in such
                              document or, if later, of any adjourned such
                              meeting; and

                        (2)   the surrender to the 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 deposited Bearer Note which is to be
                              released or (as the case may require) the Bearer
                              Note or Bearer Notes ceasing with the agreement of
                              the Paying Agent to be held to its order or under
                              its control and the giving of notice by the Paying
                              Agent to the Issuer in

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                                      141
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--------------------------------------------------------------------------------

                              accordance with paragraph 17 hereof of the
                              necessary amendment to the block voting
                              instruction;

                  (b)   it is certified that each holder of such Bearer Notes
                        has instructed such Paying Agent that the vote(s)
                        attributable to the Bearer Note or Bearer Notes so
                        deposited or 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 nominal amount of the Bearer Notes so
                        deposited or 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 Bearer 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; and

            (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.

      (B)   A holder of a Bearer Note may obtain a voting certificate in respect
            of such Bearer Note from a Paying Agent or require a Paying Agent to
            issue a block voting instruction in respect of such Bearer Note by
            depositing such Bearer Note with such Paying Agent or (to the
            satisfaction of such Paying Agent) by such Bearer Note 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 sub-paragraph (i)(a) or (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 sub-paragraph (ii)(b) above.
            The holder of any voting certificate or the proxies named in any
            block voting

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            instruction shall for all purposes in connection with the relevant
            meeting or adjourned meeting of Noteholders be deemed to be the
            holder of the Bearer Notes to which such voting certificate or block
            voting instruction relates and the Paying Agent with which such
            Bearer Notes have been deposited or 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 Bearer Notes.

      (C)   (i)   A holder of Registered Notes (whether in definitive form or
                  represented by a Global Note) 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 Registered 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 sub-paragraph (i) above or
                  representative appointed pursuant to sub-paragraph (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
                  Registered Notes to which such appointment relates and the
                  holder of the Registered Notes shall be deemed for such
                  purposes not to be the holder.

2.    The Issuer or the Guarantor may at any time and the Issuer shall upon a
      requisition in writing signed by the holders of not less than one-tenth in
      nominal amount of the Notes of any Series for the time being outstanding
      convene a meeting of the Noteholders and if the Issuer makes default for a
      period of seven days in convening such a meeting the same may be convened
      by the requisitionists. Every such meeting shall be held at such time and
      place as the Agent 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 in the manner provided by Condition 15.
      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 (i) Bearer Notes may, not less than 48 hours before the time
      fixed for the meeting, be deposited with Paying Agents or (to their
      satisfaction) held to their order or under their control for the purpose
      of obtaining voting certificates or appointing proxies and (ii) the
      holders of Registered Notes 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 Issuer (unless the meeting is convened
      by the Issuer) and to the Guarantor (unless the meeting is convened by the
      Guarantor).

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4.    A person (who may but need not be a Noteholder) nominated in writing by
      the Issuer 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
      fifteen minutes after the time appointed for holding the meeting or
      adjourned meeting the Noteholders present shall choose one of their number
      to be 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.    At any such meeting one or more persons present holding Definitive Notes
      or voting certificates or being proxies or representatives and holding or
      representing in the aggregate not less than one-twentieth of the nominal
      amount of the 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 one or more persons present holding Definitive Notes or
      voting certificates or being proxies or representatives and holding or
      representing in the aggregate a clear majority in nominal amount of the
      Notes for the time being outstanding PROVIDED THAT at any meeting the
      business of which includes any of the following matters (each of which
      shall only be capable of being effected after having been approved by
      Extraordinary Resolution) namely:

      (i)   reduction or cancellation of the amount payable or, where
            applicable, modification, except where such modification is 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 Notes;

      (ii)  alteration of the currency in which payments under the Notes,
            Receipts and Coupons are to be made;

      (iii) alteration of the majority required to pass an Extraordinary
            Resolution;

      (iv)  the sanctioning of any such scheme or proposal as is described in
            paragraph 18(I) below;

      (v)   alteration of this proviso or the proviso to paragraph 6 below;

      the quorum shall be one or more persons present holding Definitive Notes
      or voting certificates or being proxies or representatives and holding or
      representing in the aggregate not less than 75 per cent. of the nominal
      amount of the Notes for the time being outstanding.

6.    If within fifteen minutes (or such longer period not exceeding thirty
      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 14 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 Agent). If within fifteen
      minutes (or such longer period not exceeding thirty minutes as the
      Chairman may decide) after the time appointed for any adjourned meeting a
      quorum is not present for the

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      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 Agent)
      dissolve such meeting or adjourn the same for such period, being not less
      than 14 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
      Agent, 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 Notes or voting certificates or being proxies
      or representatives (whatever the nominal amount of the 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 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 Notes or voting certificates or being proxies
      or representatives and holding or representing in the aggregate not less
      than a clear majority of the nominal amount of the Notes for the time
      being outstanding.

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 Issuer, the
      Guarantor or any person present holding a Definitive Note or a voting
      certificate or being a proxy or representative (whatever the principal
      amount of the 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.   Any director or officer of the Issuer or the Guarantor and their
      respective lawyers may attend and speak at any meeting. Save as aforesaid,
      but without prejudice to the proviso to the definition of "outstanding" in
      clause 1, no person shall be entitled to attend and speak nor

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      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 Condition 12 unless he
      either produces the Definitive Bearer Note or Definitive Bearer Notes of
      which he is the holder or a voting certificate or is a proxy or a
      representative or is the holder of a Definitive Registered Note or
      Definitive Registered Notes. No person shall be entitled to vote at any
      meeting in respect of Notes held by, for the benefit of, or on behalf of,
      the Issuer, the Guarantor, any holding company of the Guarantor or any
      other Subsidiary of the Guarantor or any such holding company. 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 Issuer or the
      Guarantor.

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 Definitive Bearer Note or voting certificate or is a
            holder of Definitive Registered Notes or is a proxy or
            representative shall have one vote; and

      (B)   on a poll every person who is so present shall have one vote in
            respect of each U.S.$1.00 or such other amount as the Agent may in
            its absolute discretion stipulate (or, in the case of meetings of
            holders of Notes denominated in another currency, such amount in
            such other currency as the Agent in its absolute discretion may
            stipulate) in nominal amount of the Definitive Notes so produced or
            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 Issuer)
      with proof satisfactory to the Issuer 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 Agent 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 Agent before the commencement of the
      meeting or adjourned meeting but the Agent 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
      Registered Note from the holder thereof by the Issuer at its registered
      office (or such other place as may have been required or approved by the
      Agent for the purpose) by the time being 24 hours and 48 hours

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      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.   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 Issuer, the Guarantor and the Noteholders and
            Couponholders or any of them.

      (B)   Power to sanction any abrogation, modification, compromise or
            arrangement in respect of the rights of the Noteholders, the
            Receiptholders, the Couponholders, the Issuer or the Guarantor
            against any other or others of them or against any of their property
            whether such rights shall arise under this Agreement, the Notes, the
            Coupons or the Receipts or otherwise.

      (C)   Power to assent to any modification of the provisions of this
            Agreement, the Notes, the Coupons or the Receipts, the Guarantee,
            the Conditions or the Deed of Covenant which shall be proposed by
            the Issuer, the Guarantor or any Noteholder.

      (D)   Power to give any authority or sanction which under the provisions
            of this Agreement, the Notes, the Coupons or the Receipts, the
            Guarantee, the Conditions or the Deed of Covenant 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 sanction any scheme or proposal for the exchange or sale of
            the Notes for or the conversion of the Notes into or the
            cancellation of the Notes in consideration of shares, stock, notes,
            bonds, debentures, debenture stock and/or other obligations and/or
            securities of the Issuer, the Guarantor 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
            securities as aforesaid and partly for or into or in consideration
            of cash.

19.   Any resolution passed at a meeting of the Noteholders duly convened and
      held in accordance with the provisions hereof shall be binding upon all
      the Noteholders whether present or not present at such meeting and whether
      or not voting and upon all Receiptholders and Couponholders 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 published in
      accordance with Condition 15 by the Issuer within 14 days of such result
      being known PROVIDED THAT the non-publication of such notice shall not
      invalidate such result.

20.   The expression "Extraordinary Resolution" when used in this Agreement or
      the Conditions means a resolution passed at a meeting of the Noteholders
      duly convened and held in accordance herewith 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.

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21.   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 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.

22.   (A)   If and whenever the Issuer shall have issued and have outstanding
            Notes of more than one Series the foregoing provisions of this
            Schedule shall have effect subject to the following modifications:

            (i)   a resolution which affects the Notes of only one Series shall
                  be deemed to have been duly passed if passed at a separate
                  meeting of the holders of the Notes of that Series;

            (ii)  a resolution which affects the Notes of more than one Series
                  but does not give rise to a conflict of interest between the
                  holders of Notes of any of the Series so affected shall be
                  deemed to have been duly passed if passed at a single meeting
                  of the holders of the Notes of all the Series so affected;

            (iii) a resolution which affects the Notes of more than one Series
                  and gives or may give rise to a conflict of interest between
                  the holders of the Notes of one Series or group of Series so
                  affected and the holders of the Notes of another Series or
                  group of Series so affected shall be deemed to have been duly
                  passed only if passed at separate meetings of the holders of
                  the Notes of each Series or group of Series so affected; and

            (iv)  to all such meetings all the preceding provisions of this
                  Schedule shall mutatis mutandis apply as though references
                  therein to Notes, Noteholders and holders were references to
                  the Notes of the Series or group of Series in question or to
                  the holders of such Notes, as the case may be.

      (B)   If the Issuer shall have issued and have outstanding Notes which are
            not denominated in United States dollars, in the case of any meeting
            of holders of Notes of more than one currency the nominal amount of
            such Notes shall: (i) for the purposes of paragraph 2 above by the
            equivalent in United States dollars at the spot rate of a bank
            nominated by the Agent for the conversion of the relevant currency
            or currencies into United States dollars on the seventh dealing day
            prior to the day on which the requisition in writing is received by
            the Issuer; and (ii) for the purposes of paragraphs 5, 6 and 14
            above (whether in respect of the meeting or any adjourned such
            meeting or any poll resulting therefrom) be the equivalent at such
            spot rate on the seventh dealing day prior to the day of such
            meeting. In such circumstances, on any poll each person present
            shall have one vote for each U.S.$1.00 (or such other United States
            dollar amount as the Agent may in its absolute discretion stipulate)
            in nominal amount of the Notes (converted as above) which he holds
            or represents.

23.   Subject to all other provisions contained herein the Agent may without the
      consent of the Issuer, the Guarantor, the Noteholders, the Receiptholders
      or the Couponholders prescribe such further regulations regarding the
      requisitioning and/or the holding of meetings of Noteholders and
      attendance and voting thereat as the Agent may in its sole discretion
      think fit.

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                                   SCHEDULE 4

                               FORM OF PUT NOTICE

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                       [title of relevant Series of Notes]

  By depositing this duly completed Notice with any Paying Agent, any Transfer
Agent or the Registrar for the above Series of Notes (the "Notes") the
undersigned holder of such Notes surrendered with this Notice and referred to
below irrevocably exercises its option to have such Notes redeemed in accordance
with Condition 7(d) on [redemption date].

This Notice relates to Notes in the aggregate nominal amount of ..........
bearing the following serial numbers:

......................................

......................................

......................................

If the Notes referred to above are to be returned (1) to the undersigned under
clause 27(4) of the Note Issuance Agreement, they should be returned by post to:

.......................

.......................

.......................

Payment Instructions

Please make payment in respect of the above-mentioned Notes by [cheque posted to
the above address/transfer to the following bank account] (2)(3):

Bank:                   ................................

Branch Address:         ................................

Branch Code:            ................................

Account Number:         ................................

Signature of holder:    ................................

                        Duly authorised on behalf of ...........................

[To be completed by recipient Paying Agent, Transfer Agent or the Registrar]

Details of missing unmatured Coupons ...............................(4)

Received by:            ................................

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[Signature and stamp of Paying Agent, Transfer Agent or the Registrar]

At its office at:       .................................

On:                     .................................

Notes

(1)   The Note Issuance Agreement provides that Notes so returned will be sent
      by post, uninsured and at the risk of the Noteholder, unless the
      Noteholder otherwise requests and pays the costs of such insurance to the
      relevant Paying Agent, Transfer Agent or the Registrar at the time of
      depositing the Note referred to above.

(2)   Payment by cheque is only available to holders of Registered Notes.

(3)   Delete as applicable.

(4)   Only relevant for Fixed Rate Notes in definitive form (which are not also
      Indexed Redemption Amount Notes).

N.B.  The Paying Agent, Transfer Agent or the Registrar with whom the
      above-mentioned Notes are deposited will not in any circumstances be
      liable to the depositing Noteholder or any other person for any loss or
      damage arising from any act, default or omission of such Paying Agent,
      Transfer Agent or the Registrar in relation to the said Notes or any of
      them unless such loss or damage was caused by the fraud or gross
      negligence of such Paying Agent, Transfer Agent or the Registrar or their
      respective directors, officers or employees.

      This Put Notice is not valid unless all of the paragraphs requiring
      completion are duly completed. Once validly given this Put Notice is
      irrevocable except in the circumstances set out in clause 27(4) of the
      Note Issuance Agreement.

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                                   SCHEDULE 5

                              SELLING RESTRICTIONS

1.    United States

(1)   The Notes have not been and will not be registered under the Securities
      Act, and may not be offered or sold within the United States or to, or for
      the account or benefit of, U.S. persons except in accordance with
      Regulation S under the Securities Act or pursuant to an exemption from the
      registration requirements of the Securities Act. Each Dealer represents
      and agrees that it has not offered and sold any Notes, and will not offer
      and sell any Notes: (i) as part of their distribution at any time; and
      (ii) otherwise until 40 days after the completion of the distribution of
      all Notes of the Tranche of which such Notes are a part, as determined and
      certified as provided below, only in accordance with Rule 903 of
      Regulation S under the Securities Act. Accordingly, each Dealer further
      represents and agrees that it, its affiliates or any persons acting on its
      or their behalf have not engaged and will not engage in any directed
      selling efforts with respect to any Note, and it and they have complied
      and will comply with the offering restrictions requirement of Regulation
      S. Each Dealer who has purchased Notes of a Tranche hereunder (or in the
      case of a sale of a Tranche of Notes issued to or through more than one
      Dealer, each of such Dealers as to the Notes of such Tranche purchased by
      or through it or, in the case of a syndicated issue, the relevant Lead
      Manager) shall determine and certify to the Agent the completion of the
      distribution of the Notes of such Tranche. On the basis of such
      notification or notifications, the Agent agrees to notify such Dealer/Lead
      Manager of the end of the restricted period with respect to such Tranche.
      Each Dealer also agrees that, at or prior to confirmation of sale of
      Notes, it will have sent to each distributor, dealer or person receiving a
      selling concession, fee or other remuneration that purchases Notes from it
      during the restricted period a confirmation or notice to substantially the
      following effect:

      "The Securities covered hereby have not been registered under the U.S.
      Securities Act of 1933, as amended (the "Securities Act"), and may not be
      offered or sold within the United States or to, or for the account or
      benefit of, U.S. persons: (i) as part of their distribution at any time;
      or (ii) otherwise until 40 days after the completion of the distribution
      of the Securities as determined and certified by the relevant Dealer, in
      the case of a non-syndicated issue, or the Lead Manager, in the case of a
      syndicated issue, and except in either case in accordance with Regulation
      S under the Securities Act. Terms used above have the meanings given to
      them by Regulation S."

      Terms used in this sub-clause 1(1) have the meanings given to them by
      Regulation S.

(2)   In addition:

      (a)   except to the extent permitted under U.S. Treasury Regulation
            Section 1.163-5(c)(2)(i)(D) (the "D Rules"), each Dealer: (i)
            represents that it has not offered or sold, and agrees that during
            the restricted period it will not offer or sell, Notes in bearer
            form to a person who is within the United States or its possessions
            or to a United States person, and (ii) represents that it has not
            delivered and agrees that it will not deliver within the United
            States or its possessions definitive Notes in bearer form that are
            sold during the restricted period;

      (b)   each Dealer represents that it has and agrees that throughout the
            restricted period it will have in effect procedures reasonably
            designed to ensure that its employees or agents who are directly
            engaged in selling Notes in bearer form are aware that such

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            Notes may not be offered or sold during the restricted period to a
            person who is within the United States or its possessions or to a
            United States person, except as permitted by the D Rules;

      (c)   if it is a United States person, each Dealer represents that it is
            acquiring the Notes for purposes of resale in connection with their
            original issuance and if it retains Notes in bearer form for its own
            account, it will only do so in accordance with the requirements of
            U.S. Treasury Regulation Section l.163-5(c)(2)(i)(D)(6); and

      (d)   with respect to each affiliate that acquires Notes from a Dealer for
            the purpose of offering or selling such Notes during the restricted
            period, such Dealer repeats and confirms the representations and
            agreements contained in sub-clauses (a), (b) and (c) on such
            affiliate's behalf.

      Terms used in this Paragraph 1(2) have the meanings given to them by the
      U.S. Internal Revenue Code and regulations thereunder, including the D
      Rules.

(3)   Notwithstanding anything above to the contrary, it is understood that
      Registered Notes may be offered and sold pursuant to a private placement
      or another exemption under the Securities Act in the United States, and in
      connection therewith each Dealer represents and agrees that:

      (a)   offers, sales, resales and other transfers of Notes made in the
            United States made or approved by a Dealer (including offers,
            resales or other transfers made or approved by a Dealer in
            connection with secondary trading) shall be made with respect to
            Registered Notes only and shall be effected pursuant to an exemption
            from the registration requirements of the Securities Act;

      (b)   offers, sales, resales and other transfers of Notes made in the
            United States will be made only in private transactions to: (1) a
            limited number of institutional investors that are accredited
            investors (as defined in Rule 501(a) (1), (2), (3) or (7) under the
            Securities Act each such institutional investor being hereinafter
            referred to as an "Institutional Accredited Investor") that has
            executed and delivered to a Dealer an IAI Investment Letter; or (2)
            institutional investors that are reasonably believed to qualify as
            qualified institutional buyers within the meaning of Rule 144A (each
            such institutional investor being hereinafter referred to as a
            "qualified institutional buyer");

      (c)   the Notes will be offered in the United States only by approaching
            prospective purchasers on an individual basis. No general
            solicitation or general advertising within the meaning of Rule
            502(c) under the Securities Act will be used in connection with the
            offering of the Notes in the United States;

      (d)   no sale of Notes in the United States to any one Institutional
            Accredited Investor will be for less than U.S.$100,000 principal
            amount and no Note will be issued in connection with such a sale in
            a smaller principal amount. If such purchaser is a non-bank
            fiduciary acting on behalf of others, each person for whom it is
            acting must purchase at least U.S.$100,000 principal amount of the
            Notes; and

      (e)   each Note sold as a part of a private placement in the United States
            and each Reg. S Global Note shall contain the legend in
            substantially the following form:

            "This Note has not been registered under the Securities Act of 1933,
            as amended (the "Securities Act"), or any state securities laws.
            Neither this Note nor any interest or participation herein may be
            reoffered, sold, assigned, transferred, pledged,

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            encumbered or otherwise disposed of in the absence of such
            registration or unless such transaction is exempt from, or not
            subject to, registration.

            The holder of this Note by its acceptance hereof, on its own behalf
            and on behalf of any account for which it is purchasing this Note or
            any interest or participation herein, agrees that it shall not
            offer, sell or otherwise transfer such note or any interest or
            participation herein except to, or for the account or benefit of,
            (A) the Issuer or a Dealer (as defined in the offering circular for
            the Note), (B) a "Qualified Institutional Buyer" (as defined in Rule
            144A under the Securities Act), (C) an "Accredited Investor" (as
            defined in Rule 501(a) (1), (2), (3) or (7) under the Securities
            Act) that is an institution and that, prior to such transfer, shall
            have furnished to such holder and to the Issuer of this Note a
            written certification containing certain representations and
            agreements relating to the restrictions on transfer of this Note
            (the form of which letter can be obtained from the Registrar and the
            Transfer Agents), (D) outside the United States in a transaction
            which meets the requirements of Rule 904 under the Securities Act,
            (E) pursuant to an effective registration statement under the
            Securities Act, or (F) pursuant to any other available exemption
            from the registration requirements of the Securities Act. Upon any
            transfer of this Note or any interest or participation herein
            pursuant to clause (C), (D) or (F), in the case of Legended Notes,
            or clause (B), (C) or (F) in the case of Reg. S Notes, the holder
            will be required to furnish to the Issuer, the Registrar and the
            Transfer Agents such certifications (which in the case of transfers
            pursuant to clause (C), (D) or (F) in the case of Legended Notes or
            clause (B), (C) or (F) in the case of Reg. S Notes, can be obtained
            from the Registrar), legal opinions or other information as any of
            them may reasonably require to confirm that such transfer is being
            made pursuant to an exemption from, or in a transaction not subject
            to, the registration requirements of the Securities Act. The Holder
            will also be required to deliver to the transferee of this Note or
            any interest or participation therein a notice substantially to the
            effect of this legend. Any resale or other transfer or attempted
            resale or other transfer of this Note made other than in compliance
            with the foregoing restriction shall not be recognised by the
            Issuer, the Registrar, the Transfer Agents or any other agent of the
            Issuer."

      The legend endorsed on each Reg. S Global Note shall cease to apply after
      expiry of the Restricted Period applicable thereto.

(4)   Each Dealer has represented and agreed and each New Dealer will be
      required to represent and agree that it has not entered and agrees that it
      will not enter into any contractual arrangement with respect to the
      distribution or delivery of Notes, so as to cause any person to become a
      "distributor" within the meaning of Regulation S or U.S. Treasury
      Regulation Section 1.163-5(c)(2)(i)(D) except with its affiliates or with
      the prior written consent of the Issuer.

(5)   The Issuer represents and agrees that any resale or other transfer, or
      attempted resale or other transfer of Notes sold as part of a private
      placement in the United States made other than in compliance with the
      restrictions set out in sub-clause 1(3) shall not be recognised by the
      Issuer or the Guarantor or any agent of the Issuer or the Guarantor and
      shall be void.

(6)   Each issue of Indexed Notes or Dual Currency Notes shall be subject to
      such additional U.S. selling restrictions as the Issuer and the relevant
      Dealer may agree as a term of the issue and purchase of such Notes, which
      additional selling restrictions shall be set out in the applicable Pricing
      Supplement. The relevant Dealer agrees that it shall offer, sell and
      deliver such Notes only in compliance with such additional U.S. selling
      restrictions.

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2.    United Kingdom

      Each Dealer represents and agrees and each further Dealer appointed under
      this Agreement will be required to represent and agree that:

      (a)   in relation to Notes which have a maturity of one year or more, it
            has not offered or sold and, prior to the expiry of the period of
            six months from the date of issue of such Notes, will not offer or
            sell any such Notes to persons in the United Kingdom except to
            persons whose ordinary activities involve them in acquiring,
            holding, managing or disposing of investments (as principal or
            agent) for the purposes of their businesses or otherwise in
            circumstances which have not resulted and will not result in an
            offer to the public in the United Kingdom within the meaning of the
            Public Offers of Securities Regulations 1995 (as amended);

      (b)   in relation to any Notes having a maturity of less than one year
            from the date of issue, (i) it is a person whose ordinary activities
            involve it in acquiring, holding, managing or disposing of
            investments (as principal or agent) for the purposes of its business
            and (ii) it has not offered or sold and will not offer or sell any
            Notes other than to persons whose ordinary activities involve them
            in acquiring, holding, managing or disposing of investments (as
            principal or as agent) for the purposes of their businesses or who
            it is reasonable to expect will acquire, hold, manage or dispose of
            investments (as principal or agent) for the purposes of their
            businesses where the issue of the Notes would otherwise constitute a
            contravention of section 19 of the FSMA by the Issuer;

      (c)   it has only communicated or caused to be communicated and will only
            communicate or cause to be communicated an invitation or inducement
            to engage in investment activity (within the meaning of Section 21
            of the FSMA) received by it in connection with the issue or sale of
            any Notes in circumstances in which Section 21(1) of the FSMA does
            not apply to the Issuer or the Guarantor; and

      (d)   it has complied and will comply with all applicable provisions of
            the FSMA with respect to anything done by it in relation to such
            Notes in, from or otherwise involving the United Kingdom.

3.    Hong Kong

      Each Dealer represents and agrees and each further Dealer appointed under
      this Agreement will be required to represent and agree that:

      (a)   it has not offered or sold and will not offer or sell in Hong Kong,
            by means of any document, any Notes other than to persons whose
            ordinary business it is to buy or sell shares or debentures (whether
            as principal or agent) or in circumstances which do not constitute
            an offer to the public within the meaning of the Companies Ordinance
            of Hong Kong (Cap. 32); and

      (b)   unless it is a person permitted to do so under the securities laws
            of Hong Kong, it has not issued or had in its possession and will
            not issue, or have in its possession for the purposes of issue, any
            advertisement, invitation or document relating to any Notes issued
            pursuant to this Agreement other than with respect to Notes intended
            to be disposed of to persons outside Hong Kong or to be disposed of
            in Hong Kong only to persons whose business involves the
            acquisition, disposal, or holding of securities, whether as
            principal or agent.

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4.    Japan

      The Notes have not been and will not be registered under the Securities
      and Exchange Law of Japan (the "Securities and Exchange Law") and each
      Programme Dealer agrees, and each further Dealer or appointed under this
      Agreement will be required to agree, that it will not offer or sell any of
      the Notes, directly or indirectly, in Japan or to, or for the benefit of,
      any resident of Japan (which term as used herein means any person resident
      in Japan, including any corporation or other entity organised under the
      laws of Japan) or to others for re-offering or resale, directly or
      indirectly, in Japan or to a resident of Japan, except pursuant to an
      exemption from the registration requirements of, and otherwise in
      compliance with, the Securities and Exchange Law and any other applicable
      laws, regulations and ministerial guidelines of Japan.

5.    Italy

      The offering of Notes has not been cleared by CONSOB (the Italian
      Securities Exchange Commission) pursuant to Italian securities legislation
      and, accordingly, no Notes may be offered, sold or delivered, nor may
      copies of this Offering Circular or of any other document relating to the
      Notes be distributed in the Republic of Italy, except:

      (i)   to professional investors ("operatori qualificati"), as defined in
            Article 31, second paragraph, of CONSOB Regulation No. 11522 of July
            1, 1998, as amended;

      (ii)  in circumstances which are exempted from the rules on solicitation
            of investments pursuant to Article 100 of Legislative Decree No. 58
            of February 24, 1998 (the "Financial Services Act") and Article 33,
            first paragraph, of CONSOB Regulation No. 11971 of May 14, 1999, as
            amended; or

      (iii) to an Italian resident who submits an unsolicited offer to purchase
            Notes.

      Any offer, sale or delivery of Notes or distribution of copies of this
      Offering Circular or any other document relating to the Notes in the
      Republic of Italy under (i) or (ii) above must be:

      (a)   made by an investment firm, bank or financial intermediary permitted
            to conduct such activities in the Republic of Italy in accordance
            with the Financial Services Act and Legislative Decree No. 385 of
            September 1, 1993 (the "Banking Act"), as amended; and

      (b)   in compliance with Article 129 of the Banking Act and the
            implementing guidelines of the Bank of Italy pursuant to which the
            issue or the offer of securities in the Republic of Italy may need
            to be preceded and followed by an appropriate notice to be filed
            with the Bank of Italy depending, inter alia, on the aggregate value
            of the securities issued or offered in the Republic of Italy and
            their characteristics.

6.    The Netherlands

      Each Dealer represents and agrees and each further Dealer appointed under
      this Agreement will be required to represent and agree that, in respect of
      Notes issued, with the exception of those having a denomination of at
      least euro 50,000 or the equivalent thereof in other currencies, it has
      not, directly or indirectly, offered, sold, transferred or delivered in
      The Netherlands and will not, directly or indirectly, offer, sell,
      transfer or deliver in The Netherlands any Notes (including rights
      representing an interest in a global Note) to the account of any person or
      entity other than to persons or entities who trade or invest in securities
      in the conduct of a profession or business within the meaning of the
      Securities Transactions Supervision Act 1995 (Wet toezicht effectenverkeer
      1995) (the "Dutch Act")

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      and its implementing regulations (which includes banks, pension funds,
      insurance companies, securities firms, investment institutions and
      treasuries and finance companies of large enterprises which trade or
      invest in securities), unless (a) another exemption as provided for in the
      Dutch Act or any of its implementing regulations applies and the
      requirements applicable to such exemption are complied with, or (b) the
      Securities Board of The Netherlands has upon request granted an individual
      exemption and the requirements applicable to such exemption are complied
      with, or (c) the prohibition of section 3, sub-section 1 of the Dutch Act
      does not apply.

7.    Austria

      Each Dealer represents and agrees and each further Dealer appointed under
      this Agreement will be required to represent and agree that it will offer
      and sell Notes only in compliance with the Capital Markets Act
      ("Kapitalmarktgesetz") of 1992 and any other pertinent Austrian
      legislation or decrees of public authorities.

8.    Cayman Islands

      No invitation may be made by any Dealer to the public in the Cayman
      Islands to purchase any Notes unless such Notes are listed on the Cayman
      Islands Stock Exchange at such time.

9.    General

      Each Dealer has agreed and each further Dealer appointed under this
      Agreement will be required to agree that it will (to the best of its
      knowledge and belief) comply with all applicable securities laws and
      regulations in force in any jurisdiction in which it purchases, offers,
      sells or delivers Notes or possesses or distributes the Offering Circular
      and will obtain any consent, approval or permission required by it for the
      purchase, offer, sale or delivery by it of Notes under the laws and
      regulations in force in any jurisdiction to which it is subject or in
      which it makes such purchases, offers, sales or deliveries and neither the
      Issuer, the Guarantor nor any Dealer shall have any responsibility
      therefor.

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                                   SCHEDULE 6

                          FORM OF PROCEDURES MEMORANDUM

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                                    as Issuer

                         THE BEAR STEARNS COMPANIES INC.

                                  as Guarantor

                               U.S.$1,500,000,000

                             NOTE ISSUANCE AGREEMENT

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

                           OPERATING & ADMINISTRATIVE

                              PROCEDURES MEMORANDUM

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

                              [ALLEN & OVERY LOGO]
                                    New York

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This Memorandum sets forth the operating, settlement, administrative and other
procedures initially agreed between Bear Stearns Global Asset Holdings, Ltd.
(the "Issuer"), The Bear Stearns Companies Inc. (the "Guarantor"), JPMorgan
Chase Bank, acting through various offices in its capacities as Agent (the
"Agent"), Paying Agents (the "Paying Agents"), Registrar (the "Registrar"),
Transfer Agents (the "Transfer Agents") and Exchange Agent (the "Exchange
Agent"), Bear, Stearns International Limited and Bear, Stearns & Co. Inc. in the
Amended and Restated Note Issuance Agreement between those parties dated June
28, 2002 as the same may be amended, restated, modified, varied, supplemented or
novated from time to time (the "Note Issuance Agreement") in connection with the
issues of Notes from time to time thereunder. The Issuer, the relevant Dealer
(as defined in the Note Issuance Agreement), the Agent and, in the case of an
issue of Registered Notes, the Registrar, may agree to vary these procedures in
respect of any issue of Notes. Terms used herein shall, unless the context
otherwise requires, have the meanings given to them under the Note Issuance
Agreement and the Offering Circular and, in the case of conflict between the
provisions of this Memorandum and any of the provisions of those documents, the
provisions of those documents shall prevail. In particular, references herein to
the "relevant Dealer" are to the Dealer or Dealers with whom the Issuer has
agreed upon the issue of a particular Tranche or Issue of Notes.

The aggregate nominal amount of all Notes outstanding at any time will not,
subject as provided below, exceed U.S.$1,500,000,000 or its equivalent in other
currencies at the time of agreement to issue subject to the terms of the Note
Issuance Agreement. The Note Issuance Agreement provides for the increase in the
nominal amount of Notes that may be issued thereunder. In that event, this
Procedures Memorandum shall apply to the Note Issuance Agreement as increased.

The Note Issuance Agreement provides for the issue of Notes denominated in any
currency or currencies as may be agreed between the Issuer and the relevant
Dealer, with a minimum maturity of one month (subject to certain restrictions as
to minimum and/or maximum maturities as set out in the Offering Circular
describing the Programme) and being any of:

      o     Fixed Rate Notes
      o     Floating Rate Notes
      o     Zero Coupon Notes
      o     Dual Currency Notes
      o     Linked Notes
      o     Indexed Interest Notes
      o     Indexed Redemption Amount Notes
      o     Instalment Notes
      o     Partly Paid Notes
      o     Other forms of Notes agreed between the relevant Dealer, the Agent
            and the Issuer

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                              OPERATING PROCEDURES

Dealers must confirm all trades directly with the Issuer, the Guarantor and the
Agent.

A.    RESPONSIBILITIES OF THE AGENT

      The Agent will, in addition to the responsibilities in relation to
      settlement described in Annex A, be responsible for the following:

      (i)   in the case of Notes which are to be listed on a Stock Exchange,
            distributing to the Stock Exchange such number of copies of the
            Pricing Supplement as the relevant Stock Exchange may reasonably
            require;

      (ii)  in the case of Notes which are to be listed on a Stock Exchange,
            immediately notifying the Issuer and the relevant Dealer if at any
            time the Agent is notified by the Listing Agent or the Stock
            Exchange that the listing of a Series of Notes had been refused or
            otherwise will not take place; and

      (iii) determining the end of the distribution compliance period in respect
            of a Tranche in accordance with clause 4 of the Note Issuance
            Agreement. The Agent shall upon determining the end of the
            distribution compliance period in respect of any Tranche notify the
            Issuer and the relevant Dealer or Lead Manager, as the case may be.

B.    RESPONSIBILITIES OF DEALER/LEAD MANAGER

      (i)   Each Dealer/Lead Manager will be responsible for preparing and
            agreeing with the Issuer a Pricing Supplement (substantially in the
            form of Annex D) setting out details of each Tranche of Notes to be
            issued.

      (ii)  Except in the case of a syndicated issue, each Dealer which agrees
            to purchase Notes from the Issuer will be responsible for notifying
            the Agent upon completion of the distribution of the Notes of each
            Tranche purchased by that Dealer. In the case of a syndicated issue
            of Notes, the Lead Manager will be responsible for notifying the
            Agent upon completion of the distribution of the Notes of such
            syndicated issue.

C.    SETTLEMENT

      The settlement procedures set out in Annex A shall apply to each issue of
      Notes (Part 1 in the case of non-syndicated issues, Part 2 in the case of
      syndicated issues), unless otherwise agreed between the Issuer, the
      Guarantor and the relevant Dealer or the Lead Manager, as the case may be.
      With issues of Dual Currency or Indexed Notes or Notes the terms and
      conditions of which are not specifically contemplated in the Note Issuance
      Agreement more time may be required to settle documentation and with Notes
      which are to be listed on a Stock Exchange other than the Luxembourg Stock
      Exchange more time may be required to comply with the relevant Stock
      Exchange's requirements.

      A Trading Desk and Administrative Contact List is set out in Annex E.

Explanatory Notes to Annex A

(a)   Each day is a day on which banks and foreign exchange markets are open for
      business in London, counted in reverse order from the proposed Issue Date.

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(b)   The Issue Date must be a Business Day. For the purposes of this
      Memorandum, "Business Day" means a day which is both:

      (i)   a day on which commercial banks and foreign exchange markets settle
            payments and are open for general business (including dealings in
            foreign exchange and foreign currency deposits) in London and, in
            the case of an issue of Registered Notes, New York City; and

      (ii)  either (A) in relation to Notes denominated in a Specified Currency
            other than euro, a day on which commercial banks and foreign
            exchange markets settle payments in the principal financial centre
            of the country of the relevant Specified Currency (if other than
            London and which if the Specified Currency is Australian dollars or
            New Zealand dollars, shall be Sydney or Auckland respectively) or
            (B) in relation to Notes denominated in euro, a day on which the
            TARGET system is open.

(c)   Times given are the approximate times for the taking of the action in
      question and are references to London time (unless otherwise indicated).

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                                     ANNEX A

                                     PART 1

                 SETTLEMENT PROCEDURES FOR NON-SYNDICATED ISSUES

                    Latest
Day                 time      Action

No later than       2:00 p.m. The Issuer and the Guarantor may agree with a
Issue Date Minus 3            relevant Dealer for the issue and purchase of
                              Notes (whether pursuant to an unsolicited bid
                              from a relevant  Dealer or pursuant to an enquiry
                              by the Issuer).

                    3.00 p.m. If a relevant Dealer has reached agreement with
                              the Issuer by telephone, such relevant Dealer
                              confirms the terms of the Agreement to the Issuer
                              by telex or fax (substantially in the form set out
                              Annex B) attaching a copy of the applicable
                              Pricing Supplement (substantially in the form set
                              out in Annex D). The details set out in this telex
                              or fax shall, once countersigned or confirmed by
                              the Issuer, be conclusive evidence of the
                              agreement (save in the case of manifest error) and
                              shall be binding on the parties accordingly.

                    4.00 p.m. The Issuer confirms its instructions to the Agent
                              and the Registrar, in the case of Registered
                              Notes, to carry out the duties to be carried out
                              by them under these Settlement Procedures and the
                              Note Issuance Agreement (including, in the case of
                              Floating Rate Notes, for the purposes of rate
                              fixing) by sending a confirmation (substantially
                              in the form set out in Annex C (the
                              "Confirmation")) to them together with a copy of
                              the applicable Pricing Supplement by telex or fax.
                              The Issuer also sends the Confirmation to the
                              relevant Dealer for information.

                              In the case of the first Tranche of Notes of a
                              Series, the Agent or, in the case of Registered
                              Notes (if applicable), the Registrar [, in the
                              case of Reg. S Notes and/or Bearer Notes,]
                              telephones each of Euroclear and Clearstream,
                              Luxembourg with a request for a common code and
                              ISIN for such Series and in the case of a
                              subsequent Tranche of Notes of that Series the
                              Agent telephones each of Euroclear and
                              Clearstream, Luxembourg with a request for a
                              temporary common code and ISIN for such Tranche.
                              In the case of the first Tranche of Registered
                              Notes of a Series, the Registrar also selects the
                              next available CUSIP and/or (in the case of Reg. S
                              Notes) CINS numbers from the list provided by
                              Standard & Poor's, for such Series. Each common
                              code, ISIN, CUSIP and/or CINS number is notified
                              by the Agent or the Registrar, as the case may be,
                              by telephone, telex or fax to the Issuer and the
                              relevant Dealer.

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No later than       3:00 p.m. In the case of Floating Rate Notes, the Agent
Issue Date                    notifies Euroclear, Clearstream,  Luxembourg, the
Minus 2                       Issuer,  the relevant  Stock  Exchange,  the Lead
                              Manager, and, in the case of Registered Notes, DTC
                              and the Registrar, by telex or fax of the Rate of
                              Interest for the first Interest Period (if already
                              determined). Where the Rate of Interest has not
                              yet been determined, this will be notified by the
                              Agent in accordance with this paragraph as soon as
                              it has been determined.

                    4:30 p.m. The relevant Dealer: (a) in the case of Bearer
                              Notes and Reg. S Notes instructs Euroclear and/or
                              Clearstream, Luxembourg to debit its account and
                              pay the purchase price, (save as otherwise
                              instructed) against delivery of the Notes to the
                              Agent's account with Euroclear and/or Clearstream,
                              Luxembourg on the Issue Date and the Agent
                              receives details of such instructions through the
                              records of Euroclear and/or Clearstream,
                              Luxembourg; and (b) in the case of Registered
                              Notes, notifies DTC of the participant accounts to
                              be credited with interests in the Registered
                              Global Notes to be issued.

No later than       2.00 p.m. In the case of Notes  which are to be listed on a
Issue Date          (in the   Stock Exchange, the Agent notifies (or arranges
Minus 1             location  for notification of) the relevant Stock Exchange
                    of the    by fax or by hand of the details of the Notes to
                    relevant  be issued by sending the Pricing Supplement
                    Stock     (substantially in the form set out in Annex D)
                    Exchange  to the relevant Stock Exchange and will publish
                              (or arrange for the publication of) any formal
                              notice in accordance with the requirements of
                              the relevant Stock Exchange.

                    3.00 p.m. In the case of Bearer Notes, the Agent prepares
                              and authenticates a Temporary Bearer Global Note
                              for each Tranche of Bearer Notes which is to be
                              purchased and, in the case of the first Tranche of
                              a Series where the applicable Pricing Supplement
                              does not specify that such Temporary Bearer Global
                              Note is to be exchangeable only for Bearer Notes
                              in definitive form, a Permanent Bearer Global Note
                              in respect of such Series. The Temporary Bearer
                              Global Note and any such Permanent Bearer Global
                              Note are then delivered by the Agent to a common
                              depositary for Euroclear and Clearstream,
                              Luxembourg and instructions are given by the Agent
                              to Euroclear or, as the case may be, Clearstream,
                              Luxembourg to credit the Bearer Notes represented
                              by such Temporary Bearer Global Note to the
                              Agent's distribution account. The Agent further
                              instructs Euroclear or, as the case may be,
                              Clearstream, Luxembourg to debit from the
                              distribution account the nominal amount of the
                              relevant Tranche of Bearer Notes for value on the
                              Issue Date. The relevant Dealer gives
                              corresponding instructions to Euroclear or
                              Clearstream, Luxembourg. The parties (which for
                              this purpose shall include the Agent) may agree to
                              arrange for "free delivery" to be made through the
                              relevant clearing system if specified in the
                              applicable Pricing Supplement, in which case these
                              settlement procedures will be amended accordingly.

                              In the case of Registered Notes, the Registrar
                              prepares and authenticates Registered Global
                              Note(s) and, if applicable, Definitive Registered
                              Notes for each Tranche of Notes which is to

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                              be purchased. Each Registered Global Note is then
                              delivered by the Registrar to a custodian for DTC
                              to credit the principal amount of the relevant
                              Tranche of Registered Notes to the appropriate
                              participants' accounts of DTC previously notified
                              to the relevant Dealer. The relevant Dealer
                              instructs DTC to credit the interests in the
                              Registered Global Notes representing Notes
                              purchased by or through such Dealer to such
                              accounts as the Dealer has directed DTC and/or
                              Euroclear and/or Clearstream, Luxembourg.

Issue Date                    DTC and/or Euroclear and/or Clearstream,
                              Luxembourg debit and credit accounts in accordance
                              with instructions received by them. (In the case
                              of Euroclear and/or Clearstream, Luxembourg, this
                              will take place overnight between the Issue Date
                              Minus One and the Issue Date).

                              In the case of Bearer Notes, the Agent or, in the
                              case of Registered Notes, the Registrar, pays to
                              the Issuer for value on the Issue Date the
                              aggregate purchase moneys received by it to such
                              account of the Issuer as shall have been notified
                              to the Agent or the Registrar, as the case may be,
                              for the purpose in the Confirmation.

                              The Agent or the Registrar, as the case may be,
                              notifies the Issuer forthwith in the event that a
                              Dealer does not pay the purchase price due from it
                              in respect of a Note.

On or                         In the case of Bearer Notes, the Agent or, in
subsequent to                 the case of Registered Notes, the Registrar
the Issue Date                notifies the Issuer of the issue of the Notes
                              giving details of each of the Notes issued and the
                              nominal sum represented thereby.

                              The relevant Dealer promptly notifies the Agent
                              that the distribution of the Notes purchased by it
                              has been completed. The Agent promptly notifies
                              the Issuer, the relevant Dealer, Euroclear and
                              Clearstream, Luxembourg of the date of the end of
                              the Distribution Compliance Period with respect to
                              the relevant Tranche of Notes.

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                                       163
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--------------------------------------------------------------------------------

                                     PART 2

                   SETTLEMENT PROCEDURES FOR SYNDICATED ISSUES

                    Latest
Day                 time      Action

No later than         -       The Issuer and the Guarantor may, subject to
Issue Date minus              the execution of the Syndication Agreement
10 (or such                   referred to below, agree terms with a relevant
other number of               Dealer (which expression in this Part 2
days agreed                   includes any entity to be appointed as a dealer
between the                   under the Syndication Agreement referred to
Issuer and the                below) (the "Lead Manager") for the issue and
Lead Manager)                 purchase of Notes on a syndicated basis (whether
                              pursuant to an unsolicited bid by such Lead
                              Manager or pursuant to an enquiry by the Issuer).
                              The Lead Manager invites other Dealers (new or
                              additional) approved by the Issuer to join the
                              underwriting syndicate either on the basis of an
                              invitation telex agreed between the Issuer and the
                              Lead Manager or on the terms of the Pricing
                              Supplement referred to below and the Syndication
                              Agreement. The Lead Manager and such Dealers are
                              together referred to as the "Managers".

                              The Issuer and the Lead Manager agree a form of
                              Pricing Supplement (in substantially the form of
                              Annex D) which is submitted to the lawyers
                              rendering a legal opinion in connection with the
                              relevant issue for approval. A copy is then passed
                              to the Agent and, in the case of Registered Notes,
                              the Registrar. A draft Syndication Agreement (in
                              substantially the form of Schedule 14 to the Note
                              Issuance Agreement or such other form as may be
                              agreed between the Issuer and the Lead Manager) is
                              also prepared and agreed. The Syndication
                              Agreement may, if so agreed, be called by another
                              name. The Syndication Agreement is executed and a
                              copy sent to the Agent and, in the case of
                              Registered Notes, the Registrar, which shall act
                              as the Agent's or, as the case may be, Registrar's
                              authorisation to carry out the duties to be
                              carried but by it under these Settlement
                              Procedures and the provisions of the Note Issuance
                              Agreement.

                              In the case of the first Tranche of Notes of a
                              Series, the Agent or, in the case of Registered
                              Notes, the Registrar, in the case of Reg. S Notes
                              and/or Bearer Notes, telephones each of Euroclear
                              and Clearstream, Luxembourg with a request for a
                              common code and ISIN for such Series and in the
                              case of a subsequent Tranche of Notes of that
                              Series the Lead Manager telephones Euroclear
                              and/or Clearstream, Luxembourg with a request for
                              a temporary common code and ISIN for such Tranche.
                              In the case of the first Tranche of Registered
                              Notes of a Series, the Agent also selects the next
                              available CUSIP and/or (in the case of Reg. S
                              Notes) CINS number from the list provided by
                              Standard & Poors for such Series. Each common
                              code, ISIN, CUSIP and/or CINS number is notified
                              by the Agent or the Registrar, as the case may be,
                              by telephone, telex or by fax to the Issuer and
                              the Lead Manager.

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                                       164
<PAGE>

--------------------------------------------------------------------------------
                    Latest
Day                 time      Action

No later than       3:00 p.m. In the case of Floating Rate Notes, the Agent
Issue Date minus              notifies Euroclear, Clearstream, Luxembourg, 2 the
                              Issuer, the relevant Stock Exchange, the Lead
                              Manager and, in the case of Registered Notes, DTC
                              and the Registrar, by telex or fax of the Rate of
                              Interest for the first Interest Period (if already
                              determined). Where the Rate of Interest has not
                              yet been determined, this will be notified by the
                              Agent in accordance with this paragraph as soon as
                              it has been determined.

                    4.30 p.m. In respect of Notes to be resold pursuant to Rule
                              144A, each Manager notifies DTC of the participant
                              accounts to be credited with interests in the
                              Restricted Global Note(s) to be issued; in respect
                              of Notes to be sold pursuant to Regulation S under
                              the Securities Act, the Lead Manager notifies
                              Euroclear and Clearstream, Luxembourg of the
                              relevant accounts to be credited with Notes
                              represented by interests in the Reg. S Global
                              Note(s) to be issued.

                              In the case of Managers purchasing Notes through
                              Euroclear or Clearstream, Luxembourg, the Lead
                              Manager instructs Euroclear and/or Clearstream,
                              Luxembourg, subject to further instructions, on
                              the Issue Date or, in the case of Notes
                              denominated in a currency requiring a pre-closing,
                              the Issue Date minus 1, to debit its account and
                              pay the purchase price against delivery of the
                              Notes as instructed by the Lead Manager on the
                              Issue Date, to the account specified by the
                              Issuer.

Issue Date Minus 1  2:00 p.m. In the case of Notes to be listed on a Stock
                    (in the   Exchange, the Agent notifies (or arranges for
                    location  notification of) the relevant Stock
                    of the    Exchange by fax or by hand of details of the Notes
                    relevant  to be issued by sending the Pricing Supplement
                    Stock     (substantially in the form of Annex D) to the
                    Exchange) relevant Stock Exchange and will publish (or
                              arrange for the publication of) any formal notice
                              in accordance with the requirements of the
                              relevant Stock Exchange.

Issue Date Minus 1  agreed    In the case of Bearer Notes, the Agent prepares
(in the case of     time      and authenticates the Temporary Bearer Global Note
pre-closed                    for each Tranche of Notes which is to be
issues) or Issue              purchased, and in the case of the first Tranche of
Date (in any other            a Series where the Pricing Supplement for such
case)                         Tranche does not specify that such Temporary
                              Bearer Global Note is to be exchangeable only for
                              Notes in definitive form, a Permanent Bearer
                              Global Note for such Series. The conditions
                              precedent in the Syndication Agreement are
                              satisfied and/or waived. The Temporary Bearer
                              Global Note and any such Permanent Bearer Global
                              Note are then delivered by the Agent to a common
                              depositary for Euroclear and Clearstream,
                              Luxembourg and instructions are given by the Agent
                              (on behalf of the Issuer) to the common depositary
                              to hold the Notes represented by such Temporary
                              Bearer Global Note to the Issuer's order. Any such
                              Permanent Bearer Global Note is held by the common
                              depositary for the account of the Agent. The
                              Issuer instructs the common

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

                                       165

<PAGE>

--------------------------------------------------------------------------------
                    Latest
Day                 time      Action

                              depositary to credit such nominal amount of the
                              relevant Tranche of Bearer Notes to the accounts
                              of the person entitled thereto with Euroclear or
                              Clearstream, Luxembourg against payment to the
                              specified account of the Issuer of the purchase
                              price for the relevant Tranche of Notes for value
                              on the Issue Date. The parties (which for this
                              purpose shall include the Agent) may agree to
                              arrange for "free delivery" to be made through the
                              relevant clearing system if specified in the
                              applicable Pricing Supplement, in which case these
                              Settlement Procedures will be amended accordingly.

                              In the case of Registered Notes, the Registrar
                              prepares and authenticates the Registered Global
                              Notes and, if applicable, Definitive Registered
                              Notes for each Tranche of Registered Notes to be
                              purchased. The conditions precedent in the
                              Syndication Agreement are satisfied and/or waived.
                              The Registered Global Notes are then delivered by
                              the Registrar to a custodian, for DTC to credit
                              the nominal amount of the relevant Tranche to the
                              relevant participants' accounts previously
                              notified by the Lead Manager.

                              In respect of Registered Notes resold pursuant to
                              Rule 144A, each Manager instructs DTC to credit
                              the interests in the Restricted Global Note(s)
                              representing Registered Notes purchased by each
                              Manager to such participant accounts as it has
                              previously notified to DTC; in respect of Notes
                              sold pursuant to Regulation S under the Securities
                              Act, the Lead Manager instructs Euroclear and
                              Clearstream, Luxembourg to credit the interests in
                              Reg. S Global Note(s) to Euroclear or Clearstream,
                              Luxembourg.

Issue Date                    DTC and/or Euroclear and/or Clearstream,
                              Luxembourg debit and credit accounts in accordance
                              with instructions received by them. (In the case
                              of Euroclear and/or Clearstream, Luxembourg, this
                              will take place on the Issue Date Plus 1 with a
                              back valuation to the Issue Date).

On or subsequent              In the case of  Bearer  Notes,  the Agent or, in
to the Issue Date             the case of Registered Notes, the Registrar
                              notifies the Issuer of the issue of the Notes
                              giving details of nominal amount of each of the
                              Notes issued. Each Manager promptly notifies the
                              Lead Manager when the distribution of the Notes
                              purchased by it has been completed and the Lead
                              Manager promptly notifies the Agent upon
                              completion of the distribution of the Notes of the
                              relevant Tranche. The Agent promptly notifies the
                              Issuer, the Lead Manager, DTC, Euroclear and
                              Clearstream, Luxembourg (as applicable) of the
                              date of the end of the Distribution Compliance
                              Period with respect to the relevant Tranche of
                              Notes.

--------------------------------------------------------------------------------
                                       166
<PAGE>

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

                                     ANNEX B

                     FORM OF DEALER'S CONFIRMATION TO ISSUER
                            FOR NON-SYNDICATED ISSUES

[Date]

To:   Bear Stearns Global Asset Holdings, Ltd.
c.c.  JPMorgan Chase Bank

                    Bear Stearns Global Asset Holdings, Ltd.

         [Title of relevant Series of Notes (specifying type of Notes)]
       issued pursuant to the Amended and Restated Note Issuance Agreement
               dated June 28, 2002 (the "Note Issuance Agreement")

We hereby confirm our agreement for the purchase by us of Notes under the Note
Issuance Agreement pursuant to the terms of issue set out in the form of Pricing
Supplement attached hereto.

[The selling commission in respect of the Notes will be ........ per cent. of
the principal amount of the Notes and will be deductible from the net proceeds
of the Issue.] Please confirm your agreement to the terms of issue by signing
and returning a copy of this Confirmation (including the form of Pricing
Supplement attached hereto) or otherwise confirm in writing or by telex to us
your agreement hereto.

[Name of Dealer]

By:

We confirm our agreement as set out above and in the form of Pricing Supplement
attached hereto.

Bear Stearns Global Asset Holdings, Ltd.

By:

                      [FORM OF PRICING SUPPLEMENT ATTACHED]

--------------------------------------------------------------------------------
                                       167
<PAGE>

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

                                     ANNEX C

                FORM OF ISSUER'S CONFIRMATION TO AGENT AND DEALER
                  FOR ISSUES OF NOTES ON A NON-SYNDICATED BASIS

[Date]

To:   JPMorgan Chase Bank

and:  [Name of Dealer]

                    Bear Stearns Global Asset Holdings, Ltd.
         [Title of relevant Series of Notes (specifying type of Notes)]
       issued pursuant to the Amended and Restated Note Issuance Agreement
               dated June 28, 2002 (the "Note Issuance Agreement")

Terms defined in the Procedures Memorandum and the Note Issuance Agreement have
the same meanings herein.

We hereby confirm our telephone instruction to you as Agent to undertake the
duties set out in Part 1 of Annex A of the Procedures Memorandum appearing as
Schedule 6 to the Note Issuance Agreement including, as required, giving
instructions to Euroclear or Clearstream, Luxembourg or DTC to credit the
account number ....... with [Euroclear/Clearstream, Luxembourg/DTC/other] (1) of
[name of Dealer] with the Notes described in the confirmation from the Dealer to
us and copied to you together with a form of Pricing Supplement against payment
to the account of ....... with [Euroclear/Clearstream, Luxembourg/DTC/other] (1)
of ......., being the net purchase monies of such Notes.

Bear Stearns Global Asset Holdings, Ltd.

By:

----------------
(1)   Delete as appropriate.

--------------------------------------------------------------------------------
                                       168
<PAGE>

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

                                          ANNEX D

                                 FORM OF PRICING SUPPLEMENT

[Date]

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.
         [Title of relevant Series of Notes (specifying type of Notes)]
                   issued pursuant to the Amended and Restated
                  Note Issuance Agreement dated June 28, 2002
             as amended, restated and supplemented from time to time
                         (the "Note Issuance Agreement")

This document constitutes the Pricing Supplement relating to the issue of Notes
described herein. Terms used herein shall be deemed to be defined as such for
the purposes of the conditions set forth in the Offering Circular dated June 28,
2002. This Pricing Supplement must be read in conjunction with such Offering
Circular.

Terms used herein shall be deemed to be defined as such for the purposes of the
Conditions.

[Include whichever of the following apply]

<TABLE>
<CAPTION>
<S>                                                           <C>
1.    Name of:
      (a) Issuer; and
      (b) Guarantor

2.    Series Number (of each Tranche, if                      [                ]
      applicable) and, if not a new Series, the
      date from which the Tranche being issued
      will form a single Series with the other
      Notes comprised in that Series:

3.    Whether Notes are in bearer and/or                      [                ]
      registered form:

4.    Whether Notes will initially be                         [Temporary Bearer Global Note -
      represented by a Temporary Bearer Global                [       ]/Reg. S Global Note -
      Note and/or Restricted Global Note and/or               [       ]/Restricted Global Note -
      Reg. S Global Note and/or definitive                    [       ] Definitive Registered Notes -
      Registered Notes and, in each case, the                 [      ]]
      initial aggregate nominal amount which
      each such global Note will represent
      and/or of definitive Registered Notes to
      be issued:

5.    Specified Currency (or currencies in the                [                ]
      case of Dual Currency Notes):

6.    Aggregate Nominal Amount:                               [                ]
</TABLE>

--------------------------------------------------------------------------------
                                       169
<PAGE>

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                           <C>
7.    Interest Payment Basis and, if more than                Fixed Rate Notes/Floating Rate Notes/
      one, the dates during which each                        Zero Coupon Notes/Indexed Redemption
      Interest/Payment Basis will apply and/or                Amount Notes/Indexed Interest Notes/
      details as to if convertible                            Linked Notes/Dual Currency Notes/
      automatically or at option of Issuer                    Partly Paid Notes
      and/or Noteholders into Notes of another
      Interest/Payment Basis:

8.    Issue Date:                                             [                ]

9.    Specified Denominations:                                [                ]

10.   Issue Price:                                            [                ]

11.   Details relating to Partly Paid Notes;                  [                ]
      amount of each payment comprising the
      Issue Price and date on which each
      payment is to be made and consequences
      (if any) of failure to pay:

12.   Interest Commencement Date (for interest                [                ]
      bearing Notes):

13.   Maturity Date:                                          [                ]

14.   Final Redemption Amount:                                [     ]% per [   ] in nominal amount

15.   Instalment Dates                                        [                ]
      (Notes redeemable in instalments):

16.   Instalment Amounts (Notes redeemable in                 [     ]% per [    ] in nominal amount
      instalments):

17.   Fixed Rate(s) of Interest (Fixed Rate                   [     ]% per cent. [     ] per annum
      Notes):

18.   Fixed Interest Date(s) (Fixed Rate Notes):              [                ]

19.   Initial Broken Amount (Fixed Rate Notes):               [     ]% per [   ] in nominal amount

20.   Final Broken Amount (Fixed Rate Notes):                 [     ]% per [   ] in nominal amount

21.   Determination Date(s) (Fixed Rate Notes):               [                ] in each year
                                                              [Insert interest payment dates except
                                                              where there are long or short periods.
                                                              In these cases, insert regular payment
                                                              dates] (NB: Only relevant where Day
                                                              Count Fraction is Actual/Actual
                                                              (ISMA))
</TABLE>

--------------------------------------------------------------------------------
                                       170
<PAGE>

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                           <C>

22.   Interest Period(s) and Interest Payment                 [                ]
      Date(s) (Floating Rate Notes/Indexed
      Interest Notes):

23.   Applicable Business Day Convention                      [                ]
      (Floating Rate Notes/Indexed Interest
      Notes):

24.   Manner in which the Rate of Interest is                 [ISDA Determination/Screen Role
      to be determined (Floating Rate                         Determination/other (give details)]
      Notes/Indexed Interest Notes):

25.   Margin (Floating Rate Notes/Indexed                     [+/-] [     ] per cent. per annum
      Interest Notes):

26.   Details of:                                             [                ]

      (a)   the "Floating Rate Option";

      (b)   the "Designated Maturity"; and

      (c)   the "Reset Dates",

      if other than as provided in Condition
      6(b)(iii)(C) (ISDA Determination):

27.   Reference Rate (Screen Rate
      Determination):

28.   Interest Determination Date(s) (Screen                  [The second London Business Day as
      Rate Determination):                                    defined in Condition 5(b)(viii) prior to
                                                              the commencement of the relevant
                                                              Interest Period (in the case of Notes
                                                              denominated in any Specified Currency
                                                              other than Sterling)]. [The first day
                                                              of the relevant Interest Period [(in
                                                              the case of Notes denominated in
                                                              Sterling)]/[other]

29.   Relevant Screen Page (Screen Rate                       [                ]
      Determination):

30.   The party responsible for calculating the               [                ]
      Rate of Interest and Interest Amount (if
      not the Agent) (Floating Rate Notes):

31    Applicable "Business Day" definition and                [                ]
      relevant convention (for the purposes of
      Condition 5(a)(i)) (Floating Rate
      Notes/Indexed Interest Notes):

32.   Minimum Rate of Interest (Floating Rate                 [     ] per cent. per annum
      Notes):
</TABLE>

--------------------------------------------------------------------------------
                                       171
<PAGE>

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                           <C>

33.   Maximum Rate of Interest (Floating Rate                 [     ] per cent. per annum
      Notes):

34.   The denominator for calculating the                     [                ]
      Interest Amount (if different from that
      in Condition 5(b)(vii)) (Floating Rate
      Notes):

35.   Accrual Yield (Zero Coupon Notes):                      [     ] per cent. per annum

36.   Reference Price (Zero Coupon Notes):                    [                ]

37.   Any other formula/basis of determining                  [                ]
      amount payable (Zero Coupon Notes):                     (Consider applicable day count
                                                              fraction if not U.S. dollar
                                                              denomination)

38.   Index and Index Formula (Indexed Notes):                [give details]

39.   (a)   Agent responsible for                             [                ]
            calculating the principal and/or
            interest due (Indexed Notes):

      (b)   Provisions where calculation by                   [                ]
            reference to Index and/or
            Formula is impossible or
            impracticable (Indexed Notes):

      (c)   Name of Sponsor                                   [                ]
            (Indexed Notes):

      (d)   [Stock Exchange/Related                           [                ]
            Exchange]:

      (e)   Valuation Date:                                   [                ]

40.   (a)   Underlying Securities and/or                      [                ]
            Formula to be used to determine
            principal and/or interest or the
            Securities Amount (Linked Notes):

      (b)   Settlement by way of cash and/or                  [                ]
            physical delivery (Linked Notes):

      (c)   Issuer [/Noteholder] option to                    [Yes/No]
            vary method of settlement and,
            if yes, method of election, and
            procedure, for variation of
            settlement (Linked Notes):

      (d)   If settlement is by way of
            physical delivery (Linked
</TABLE>

--------------------------------------------------------------------------------
                                       172
<PAGE>

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                           <C>
            Notes):

            (i)    method of delivery of                      [                ]
                   Securities Amount [and
                   consequences of a
                   Settlement Disruption
                   Event];

            (ii)   details of how and when                    [                ]
                   Transfer Notice is to
                   be delivered; and

            (iii)  details of how                             [                ]
                   entitlement to
                   Securities Amount will
                   be evidenced:

      (e)   The party responsible for
            calculating the amount of
            principal and/or interest or the
            Securities Amount (if not the
            Agent) (Linked Notes):                            [                ]

      (f)   Provisions where calculation by
            reference to the Underlying
            Securities and/or Formula is
            impossible or impracticable
            (Linked Notes):                                   [                ]

      (g)   Details of any other relevant
            terms, any stock exchange
            requirements/tax considerations
            (including details of person
            responsible for Transfer Expenses                 [                ]
            - if different from Condition
            7(e)) (Linked Notes):

      (h)   Method of calculating Early
            Redemption amount (if for reasons
            other than following a redemption
            for tax reasons or an Event of
            Default) (Linked Notes):                          [                ]

      (i)   ISDA Credit Derivatives
            Definitions applicable (Linked                    [                ]
            Notes):

      (j)   Such other additional terms or                    [                ]
            provisions as may be required
            (Linked Notes):
</TABLE>

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                                       173
<PAGE>

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                           <C>
41.   (a)   Rate of Exchange/method of                        [give details]
            calculating Rate of Exchange                      [                ]
            (Dual Currency Notes):

      (b)   Agent, if any, responsible for                    [                ]
            calculating the principal and/or
            interest payable (Dual Currency
            Notes):

      (c)   Provisions where calculation by                   [                ]
            reference to Rate of Exchange
            impossible or impracticable
            (Dual Currency Notes):

      (d)   Person at whose option Specified                  [                ]
            Currencies is/are payable (Dual
            Currency Notes):

      (e)   Any special U.S. tax                              [                ]
            considerations applicable to
            Dual Currency Notes:

42.   Issuer's Optional Redemption:                           [Yes/No]

      If yes,

      (a)   Optional Redemption Date(s):                      [                ]

      (b)   Optional Redemption Amount of
            each Note and method, if any, of
            calculation of such amount(s):                    [                ]

      (c)   If redeemable in part

            (i)   Minimum Redemption                          [                ]
                  Amount

            (ii)  Maximum Redemption                          [                ]
                  Amount

43.   Redemption at the Option of the                         [Yes/No]
      Noteholders:

      If yes,

      (a)   Optional Redemption Date(s):                      [                ]

      (b)   Optional Redemption Amount of
            each Note and method, if any, of
            calculation of such amount(s):                    [                ]
</TABLE>

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                                       174
<PAGE>

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                           <C>
44.   Early Redemption Amounts payable on
      redemption for taxation reasons or
      following an Event of Default and/or the
      method of calculating the same (if
      required or if different from that set out              [                ]
      in Condition 7(e)):

45.   Definition of "Payment Business Day" if                 [                ]
      different from Condition 6(c):

46.   Talons for future Coupons or Receipts to
      be attached to Definitive Notes (and                    [Yes/No.  If yes, give details]
      dates on which such Talons mature):

47.   Where applicable, whether interests in the
      Temporary Bearer Global Note are                        [Permanent Bearer Global Note/
      exchangeable for interests in the                       Definitive Bearer Notes only/
      Permanent Bearer Global Note or for                     Definitive Registered Notes]
      Definitive Bearer Notes only and whether
      interests in Registered Global Notes are
      exchangeable for Definitive Registered
      Notes:
                                                              [                ]
48.   Other terms or special Conditions,
      including whether Redenomination applies:

49.   Additional transfer restrictions:                       [give details]

50.   Additional selling restrictions:                        [give details]

51.   Method of distribution:                                 [Syndicated/Non-Syndicated]

52.   (a)   If syndicated, names of Managers                  [Give details]
            and, if non-syndicated, name of
            Dealer:

      (b)   Presumption that                                  [Yes/No]
            [Dealer/Managers] [is/are]
            selling as principal for its own
            account, and not as agent, is
            correct:

53.   Details of the relevant stabilising                     [                ]
      manager:

54.   Details of additional/alternative                       [                ]
      clearance system approved by the Issuer,
      the Guarantor and the Agent:

55.   Rating of Notes (if different from rating               [                ]
      of Programme):

</TABLE>

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                                        175
<PAGE>

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

<TABLE>
<CAPTION>
<S>                                                           <C>
56.   Notes to be listed on a                                 [Yes (give details)/No]
      Stock Exchange:
</TABLE>

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

(1) Euroclear and Clearstream, Luxembourg Common Code:             * ISIN:

CUSIP:                                                             * CINS:

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

For and on behalf of Bear Stearns Global Asset Holdings, Ltd.

By:   ...............................
      Authorised Signatory

----------------
(1)   Reg. S Notes and Bearer Notes only

--------------------------------------------------------------------------------
                                       176
<PAGE>

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

                                     ANNEX E

                   TRADING DESK AND ADMINISTRATIVE INFORMATION

The Issuer

Bear Stearns Global Asset Holdings, Ltd.          Telephone:    (212) 272 5138
P.O. Box 309, George Town, Grand Cayman           Facsimile:    (212) 272 6825
Cayman Islands, BWI                               Attention:    Tim Murray

The Guarantor

The Bear Stearns Companies Inc.                   Telephone:    (212) 272 2123
383 Madison Avenue                                Telex:        17780BEARCO UT
New York, NY  10179                               Facsimile:    (212) 272 3106
                                                  Attention:    Treasury

The Dealers

Bear, Stearns International Limited               Telephone:    44 207 516 6281
One Canada Square                                 Telex:        8811424 BEARCO G
London E14 5DB                                    Facsimile:    44 207 516 6251
                                                  Attention:    Derivatives Desk

Bear, Stearns & Co. Inc.                          Telephone:    (212) 272 5138
383 Madison Avenue                                Telex:        17780 BEARCO UT
New York, NY 10179                                Facsimile:    (212) 272 6825
                                                  Attention:    Tim Murray

--------------------------------------------------------------------------------
                                       177
<PAGE>

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

                                   SCHEDULE 7A

         FORM OF TRANSFER NOTICE - EUROCLEAR AND CLEARSTREAM, LUXEMBOURG

                    Bear Stearns Global Asset Holdings, Ltd.

                             [Title of Linked Notes]

       issued pursuant to the Amended and Restated Note Issuance Agreement
                               dated June 28, 2002

Common Code: ......

When completed, this Notice should be delivered in writing, or by tested telex
confirmed in writing, to whichever of Euroclear or Clearstream, Luxembourg
records on its books the Notes referred to below, with a copy to the
[Settlement] Agent at its office specified below.

To:   * Euroclear Bank S.A./N.V.
      (as operator of the Euroclear System)

      1 Boulevard de Roi Albert II
      B-1210 Brussels
      Belgium

      Attention:  Custody Processing Department
      Telex:      61025 MGTEC B

or    Clearstream Banking, societe anonyme
      67 Boulevard Grande-Duchesse Charlotte
      Luxembourg-Ville
      L-1010 Luxembourg

      Attention:  OCE Department
      Telex:      2791

Failure properly and completely to deliver this Notice (in the sole and absolute
determination of Euroclear or Clearstream, Luxembourg, as the case may be, in
consultation with the [Settlement] Agent) may result in this Notice being
treated as null and void.

I/We(1) being or representing the Accountholder(s) specified in 1. below, being
the Accountholder(s) of the Notes referred to below, hereby irrevocably
authorise Bear Stearns Global Asset Holdings, Ltd. (the "Issuer") to deliver
and, if applicable, pay the Securities Amount to which I/we(1) am/are(1)
entitled in relation to such Notes, in accordance with the Conditions, as set
out below. Expressions defined in the Conditions shall bear the same meanings
herein.

1.    Name(s) and Address(es) of Accountholder(s):

2.    Aggregate nominal amount of Notes subject to this Notice:

---------------
(1)   Delete as appropriate.

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3.    Instructions to Euroclear/Clearstream, Luxembourg(1) and the [Settlement]
      Agent

      I/We(1) hereby irrevocably authorise and instruct Euroclear/Clearstream,
      Luxembourg(1) to debit the number of Notes referred to above from the
      Notes Account referred to below on the [Early Redemption/Maturity] Date
      against the transfer of the relevant Securities Amount to which we are
      entitled in relation to such Notes to [us/our account at [ ] / hold on our
      behalf at [ ]].

      I/We(1) hereby irrevocably authorise the [Settlement] Agent to execute all
      relevant notices and transfer form(s) on our/my(1) behalf in relation to
      the Securities Amounts to which this Notice relates.

4.    Notes Account details

      No:
      Name:

5.    Acknowledgement as to expenses

      I/We(1) hereby acknowledge that the Issuer shall be entitled to deduct any
      Transfer Expenses and other charges and expenses in relation to the Notes
      and the Securities Amount to which this Notice applies in accordance with
      the Conditions.

6.    Beneficial ownership certificate

      I/We(1) hereby certify that I/We(1) am/are(1) not, as of the date hereof,
      a U.S. person and none of the Notes referred to above is beneficially
      owned by a U.S. person. Terms used in this paragraph shall have the
      meanings ascribed to them in Regulation S under the United States
      Securities Act of 1933, as amended.

      [I/We(1) hereby certify that I/we(1) am/are(1) eligible to hold the
      Securities Amount to be delivered to us, or on our behalf.]

      [Any relevant certifications required for U.S. Securities Act purposes to
      be set out.]

7.    Authorisation of production in proceedings

      I/We(1) hereby authorise the production of this Notice in any
      administrative or legal proceedings instituted in connection with the
      Notes to which this Notice relates.

Signed...........................            Date...............................

                                              [Settlement] Agent

                                             JPMorgan Chase Bank
                                                Trinity Tower
                                             9 Thomas More Street
                                                London E1W 1YT

------------------
(1)   Delete as appropriate.

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                                       179
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Copies:   1 to be retained by the Accountholder
          1 to be sent to the Issuer [and the Agent] by the [Settlement] Agent

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                                   SCHEDULE 7B

                          FORM OF TRANSFER NOTICE - DTC

                    Bear Stearns Global Asset Holdings, Ltd.

                                [Title of Notes]

       issued pursuant to the Amended and Restated Note Issuance Agreement
                               dated June 28, 2002

CUSIP: ......

When completed, this Notice should be delivered in writing to the Registrar [for
delivery to the custodian] on behalf of DTC, with a copy to the [Settlement]
Agent at its office specified below.

To:   (1)JPMorgan Chase Bank
      450 West 33rd Street, 15th Floor
      New York, New York 10001

      Attention:  Corporate & Municipal Agency Department, 15th Floor
      Fax:        (212) 946 8161

Failure properly and completely to deliver this Notice (in the determination of
the Agent in consultation with the [Settlement] Agent) may result in this Notice
being treated as null and void.

I/We(1), being or representing the Noteholder(s) specified in 1. below, being
the Noteholder(s) of the Notes referred to below, hereby irrevocably authorise
Bear Stearns Global Asset Holdings, Ltd.(the "Issuer") to deliver and, if
applicable, pay the Securities Amount to which I/we(1) am/are(1) entitled in
relation to such Notes, in accordance with the Conditions, as set out below.
Expressions defined in the Conditions shall bear the same meanings herein.

1.    (a)   Name(s) and Address(es) of Noteholder(s):

      (b)   Name of Participant:

2.    Aggregate nominal amount of Notes subject to this Notice

      Aggregate nominal amount:     [                 ]

3.    Instructions to the Agent and the [Settlement] Agent

      I/We(1) hereby irrevocably undertake to deliver to the Registrar on the
      Maturity Date the number of Notes held by me/us(1) or to authorise and
      instruct the Registrar to arrange for the debit of, the number of Notes
      referred to above from my/our(1) account with the Participant at DTC
      referred to below on the [Early Redemption/Maturity] Date against the
      transfer of the relevant Securities Amount to which we are entitled in
      relation to such Notes to [us/our account at [ ] / hold on our behalf at
      [      ]].

--------------------
(1)   Delete as appropriate

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                                       181
<PAGE>

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

      I/We(1) hereby irrevocably authorise the [Settlement] Agent to execute all
      relevant notices and share transfer form(s) on our/my(1) behalf in
      relation to the Securities Amount to which this Notice relates.

4.    DTC Account details

      No:
      Name:

5.    Acknowledgement as to expenses

      I/We(1) hereby acknowledge that the Issuer shall be entitled to deduct any
      Transfer Expenses and other charges and expenses in relation to the Notes
      and the Underlying Securities to which this Notice applies in accordance
      with the Conditions.

6.    Certificate as to status

      I/We(1) hereby certify that I/We(1) am/are(1), as of the date hereof, a
      "Qualified Institutional Buyer". Terms used in this paragraph shall have
      the meanings ascribed to them in Rule 144A under the United States
      Securities Act of 1933, as amended.

      [I/We(1) hereby certify that I/we(1) am/are(1) eligible to hold the
      Securities Amount to be delivered to us, or on our behalf.]

      [Any relevant certifications required for U.S. Securities Act purposes to
      be set out.]

7.    Authorisation of production in proceedings

      I/We(1) hereby authorise the production of this Notice in any
      administrative or legal proceedings instituted in connection with the
      Notes to which this Notice relates.

Signed...........................            Date...............................

                                              [Settlement] Agent

                                             JPMorgan Chase Bank
                                                Trinity Tower
                                             9 Thomas More Street
                                                London E1W 1YT

Copies:   1 to be retained by Noteholder
          1 to be sent to the Issuer [and the Agent] by the [Settlement] Agent.

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<PAGE>

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                                   SCHEDULE 8

                                     PART 1

                            FORM OF EXCHANGE REQUEST

                    Bear Stearns Global Asset Holdings, Ltd.
  [Title of Relevant Series of Notes (specifying type of Notes)] (the "Notes")
                issued pursuant to the Amended and Restated Note
                     Issuance Agreement dated June 28, 2002
                                (the "Agreement")

Terms defined in the Agreement shall have the same meanings when used herein.

To:   Transfer Agent/Registrar(1)

(1)   I/We*, the undersigned, being the registered holder(s) of those Bearer
      Notes of Bear Stearns Global Asset Holdings, Ltd. attached hereto/ of
      $.......................... in principal amount request that such Bearer
      Notes be exchanged for Registered Notes in denomination(s) of
      $........................../a beneficial interest in the Reg. S Global
      Note/Restricted Global Note.

(2)   I/We* request that the Definitive Registered Notes to be issued on
      exchange, be delivered at the specified office of the Transfer
      Agent/Registrar/sent by uninsured mail to the following address:

      ..............................

      ..............................

      ..............................

      Signature(s)  .....................

      Name(s):  .........................       (2)Dated: ......................

1.    Each Bearer Note surrendered for Exchange must be accompanied by all
      unmatured, coupons receipts and talons appertaining thereto, other than
      the coupon in respect of the next Interest Payment Date for falling after
      the date of surrender in the case of a Bearer Note surrender for exchange
      between the Record Date and such Interest Payment Date.

2.    The exchange of Notes will be subject to the provisions of all applicable
      fiscal and other laws and regulations as provided in the Conditions.

3.    Notes, if mailed, will be mailed to Noteholders at their own risk within
      seven business days.

----------------------------
(1)   Delete as appropriate

(2)   To be dated not earlier than the Exchange Date as defined in the
      Conditions.

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<PAGE>

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      To be completed by the Registrar

      (1)   Date of surrender ........................................

      (2)   Number and type of Notes to be issued or type of Note through which
            interest will be held..................................

      (3)   Denominations and number of each denomination of Notes to be issued
            ...........................

      (4)   Date on which Definitive Registered Notes to be delivered/dispatched
            or interest in Registered Global Note to be registered.

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                                       184
<PAGE>

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                                   SCHEDULE 8

                                     PART II

                  FORM OF CERTIFICATE FOR EXCHANGE OR TRANSFER
         OF REGISTERED NOTES OR BENEFICIAL INTEREST IN REGISTERED NOTES

[DATE]

To:   JPMorgan Chase Bank
      450 West 33rd Street
      New York, N.Y. 10001

             BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD. (the "Issuer")
                    [Title of Series of Notes] (the "Notes")
       issued pursuant to the Amended and Restated Note Issuance Agreement
                      dated June 28, 2002 (the "Agreement")

Reference is made to the terms and conditions of the Notes (the "Conditions")
set out in Schedule 1 to the Agreement as subsequently supplemented, amended and
restated. Terms defined in the Conditions shall have the same meaning when used
in this Certificate unless otherwise stated.

This Certificate relates to [insert nominal amount of Notes] (1)[Reg. S Notes,
CUSIP (CINS) number [ ]/[Legended Notes, CUSIP number [ ]] which are
(2)[registered in the name of] (3)[held in the form of a beneficial interest in
the (1)[Reg. S Global Notes/Restricted Global Note] with
(1)[Euroclear/Clearstream, Luxembourg/DTC] (4)[,through DTC] by or on behalf of
[insert name of transferor] [as beneficial owner] (the "Transferor"). The
Transferor has requested an exchange or transfer of (3)[its beneficial interest
in] the above Notes for (3)[ a beneficial interest in the (1)[Reg. S Global
Note/Restricted Global Note] which shall held with (1)[Euroclear/Clearstream,
Luxembourg/DTC] (4)[, through DTC]] (2) (1) [Reg. S Notes/Legended Notes] in
definitive form]. In connection with such request, the Transferor hereby
certifies that such transfer or exchange has been effected in accordance with:

(a)   the transfer restrictions set forth in the Conditions;

(b)   any applicable securities laws of the United States of America, any state
      of the United States of America or any other jurisdiction;

(c)   any applicable rules and regulations of DTC, Euroclear and Clearstream,
      Luxembourg from time to time; and

(6)[(d)  to a person who is an institutional Accredited Investor and that a
      duly executed IAI investment letter is attached to this Certificate.]

------------------------
(1)   Delete as appropriate
(2)   Include for Notes in definitive form.
(3)   Include for Notes in global form.
(4)   Only include if Notes to be transferred through Euroclear or Clearstream,
      Luxembourg.
(6)   Delete as appropriate

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                                       185
<PAGE>

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

(6)[(d)  in accordance with Regulation S under the Securities Act (5)[, and
      that immediately following such transfer or exchange the interest in the
      Notes transferred or exchanged will be held through Euroclear or
      Clearstream, Luxembourg.] ]

(6)[(d)  to a person who is an institutional Accredited Investor and that a
      duly executed IAI investment letter is attached to this Certificate.]

This Certificate and the statements contained herein are made for the benefit of
the addressee hereof and the benefit of the Dealers of the above Notes.

[Insert name of Transferor]

By: .............................

Name:

Title:

Dated: ..........................

-------------------
(5)   Include where transfer or exchange is prior to expiry of the applicable
      Restricted Period.

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<PAGE>

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                                   SCHEDULE 9

               INSTITUTIONAL ACCREDITED INVESTOR INVESTMENT LETTER

TO:   JPMorgan Chase Bank, as Registrar
      450 West 33rd Street
      New York, NY  10001

and

TO:   Bear Stearns Global Asset Holdings, Ltd.

Dear Sirs,

In connection with our proposed purchase of $...... aggregate nominal amount of
Notes (the "Notes") of Bear Stearns Global Asset Holdings, Ltd. (the "Issuer")
under its U.S.$1,500,000,000 Note Issuance Programme, we confirm that:

1.    We have received a copy of the Offering Circular, dated ...... (1), (the
      "Offering Circular") relating to the Notes and such other information as
      we deem necessary in order to make our investment decision.

2.    We understand that any subsequent transfer of the Notes is subject to
      certain restrictions and conditions set forth in the Offering Circular and
      the Notes and the undersigned agrees to be bound by, and not to resell,
      pledge or otherwise transfer the Notes except in compliance with such
      restrictions and conditions and the United States Securities Act of 1933,
      as amended (the "Securities Act").

3.    We understand that the offer and sale of the Notes have not been
      registered under the Securities Act, and that the Notes may not be offered
      or sold except as permitted in the following sentence. We agree, on our
      own behalf and on behalf of any accounts for which we are acting as
      hereinafter stated, on our own behalf and on behalf of any account for
      which we are purchasing the Notes, and each subsequent holder of the Notes
      by its acceptance thereof will agree, not to offer, sell or otherwise
      transfer such Notes except (A) to the Issuer or a Dealer (as defined in
      the Offering Circular), (B) to a "qualified institutional buyer" (as
      defined in Rule 144A under the Securities Act) in a transaction which
      meets the requirements of Rule 144A, (C) to an Institutional Accredited
      Investor (as defined in the Offering Circular) that, prior to such
      transfer, furnishes to us and to the Issuer, a signed letter,
      substantially identical to this letter, containing certain representations
      and agreements relating to the transfer of the Notes, (D) outside the
      United States in a transaction which meets the requirements of Rule 904
      under the Securities Act, (E) pursuant to an effective registration
      statement under the Securities Act or (F) pursuant to any other available
      exemption from the registration requirements of the Securities Act.

4.    We understand that, on any proposed resale of any Notes, we will be
      required to furnish to the Issuer such certifications, legal opinions, and
      other information as it may reasonably require to confirm that the
      proposed sale complies with the foregoing restrictions. We further
      understand that the Notes purchased by us will bear a legend to the
      foregoing effect.

---------------------------------
(1)   Insert date of most recent Offering Circular.

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                                       187
<PAGE>

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

5.    We are an Institutional Accredited Investor within the meaning of Rule
      501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act and
      have such knowledge and experience in financial and business matters as to
      be capable of evaluating the merits and risks of our investment in the
      Notes, and we and any accounts for which we are acting are each able to
      bear the economic risk of our or its investment.

6.    We are acquiring the Notes purchased by us for our own account or for one
      or more accounts (each of which is an Institutional Accredited Investor)
      as to each of which we exercise sole investment discretion.

You are entitled to rely upon this letter and are irrevocably authorised to
produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

Very truly yours,

.........................
Name:

Title:

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<PAGE>

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                                   SCHEDULE 10

                    REGISTER AND TRANSFER OF REGISTERED NOTES

1.    The Issuer shall at all times ensure that the Registrar maintains in New
      York, or at such other place as the Agent may agree, a register showing
      the amount of the Registered Notes 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 Registered
      Notes. The holders of the Registered Notes or any of them and any person
      authorised by any of them may at all reasonable times during office hours
      inspect the register and take copies of or extracts from it. The register
      may be closed by the Issuer for such periods at such times (not exceeding
      in total 30 days in any one year) as it may think fit.

2.    Each Registered Note shall have an identifying serial number which shall
      be entered on the register.

3.    The Registered Notes are transferable by execution of the form of transfer
      endorsed thereon under the hand of the transferor or, where the transferor
      is a corporation, under its common seal or under the hand of two of its
      officers duly authorised in writing. In each case the signature(s) must be
      guaranteed by a commercial bank with a correspondent bank in New York
      City, Luxembourg or London or by an institution which is a member of The
      New York Stock Exchange or The American Stock Exchange in New York City or
      the Luxembourg Stock Exchange or the London Stock Exchange Limited.

4.    The Registered Notes to be transferred must be delivered for registration
      to the specified office of the Registrar with the form of transfer
      endorsed thereon duly completed and executed and must be accompanied by
      such documents, evidence and information as may be required pursuant to
      the Conditions and such other evidence as the Issuer may reasonably
      require to prove the title of the transferor or his right to transfer the
      Registered Notes and, if the form of transfer is executed by some other
      person on his behalf or in the case of the execution of a form of transfer
      on behalf of a corporation by its officers, the authority of that person
      or those persons to do so.

5.    The executors or administrators of a deceased holder of Registered Notes
      (not being one of several joint holders) and in the case of the death of
      one or more of several joint holders the survivor or survivors of such
      joint holders shall be the only person or persons recognised by the Issuer
      as having any title to such Registered Notes.

6.    Any person becoming entitled to Registered Notes in consequence of the
      death or bankruptcy of the holder of such Registered Notes may upon
      producing such evidence that he holds the position in respect of which he
      proposes to act under this paragraph or of his title as the Issuer shall
      require be registered himself as the holder of such Registered Notes or,
      subject to the preceding paragraphs as to transfer, may transfer such
      Registered Notes. The Issuer shall be at liberty to retain any amount
      payable upon the Registered Notes to which any person is so entitled until
      such person shall be registered as aforesaid or shall duly transfer the
      Registered Notes.

7.    Unless otherwise requested by him, the holder of Registered Notes of any
      series shall be entitled to receive only one Registered Note in respect of
      his entire holding of such series.

8.    The joint holders of Registered Notes of any series shall be entitled to
      one Registered Note only in respect of their joint holding of such series
      which shall, except where they otherwise

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                                       189
<PAGE>

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

      direct, be delivered to the joint holder whose name appears first in the
      register of the holders of Registered Notes in respect of such joint
      holding.

9.    Where a holder of Registered Notes has transferred part only of his
      holding of any series there shall be delivered to him without charge a
      Registered Note in respect of the balance of such holding.

10.   The Issuer shall make no charge to the Noteholders for the registration of
      any holding of Registered Notes or any transfer thereof or for the issue
      thereof or for the delivery thereof at the specified office of the
      Registrar or by post to the address specified by the holder. If any holder
      entitled to receive a Registered Note wishes to have the same delivered to
      him otherwise than at the specified office of the Registrar, such delivery
      shall be made, upon his written request to the Registrar, at his risk and
      (except where sent by post to the address specified by the holder) at his
      expense.

11.   The holder of a Registered Note may (to the fullest extent permitted by
      applicable laws) be treated at all times, by all persons and for all
      purposes as the absolute owner of such Registered Note notwithstanding any
      notice any person may have of the right, title, interest or claim of any
      other person thereto. The Issuer and the Guarantor shall not be bound to
      see to the execution of any trust to which any Registered Note may be
      subject and no notice of any trust shall be entered on the register. The
      holder of a Registered Note will be recognised by the Issuer and the
      Guarantor as entitled to his Registered Note free from any equity, set-off
      or counterclaim on the part of the Issuer and the Guarantor against the
      original or any intermediate holder of such Registered Note.

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                                       190
<PAGE>

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                                        SCHEDULE 11

                                 INITIAL DOCUMENTATION LIST

1.    A certified copy of the constitutional documents of the Issuer and the
      Guarantor.

2.    A certified copy of all resolutions and other authorisations required to
      be passed or given, and evidence of any other action required to be taken,
      on behalf of the Issuer and the Guarantor:

      (a)   to approve this Agreement, the Offering Circular and any other
            documents required in connection with the listing of the Programme
            and the issue of Notes under this Agreement;

      (b)   to authorise appropriate persons to execute each of this Agreement,
            any other such documents and the Notes issued under this Agreement
            and to take any other action in connection therewith; and

      (c)   to authorise appropriate persons to enter into agreements with any
            Dealer on behalf of the Issuer to issue Notes in accordance with
            clause 2 of this Agreement.

3.    A certified list of the names, titles and specimen signatures of the
      persons authorised on behalf of the Issuer and the Guarantor in accordance
      with paragraph 2(b) and (c) above.

4.    Certified copies of any other governmental or other consents required for
      the Issuer to issue, or (where relevant) for the Guarantor to guarantee,
      Notes under this Agreement, for the Issuer and the Guarantor to execute
      and deliver this Agreement, the Deed of Guarantee, the Deed of Covenant
      and to fulfil their respective obligations under this Agreement and the
      Notes.

5.    Confirmation that one or more master Temporary Bearer Global Notes, master
      Permanent Bearer Global Notes, master Restricted Global Notes and master
      Reg. S Global Notes in respect of the Issuer (from which copies can be
      made for each particular issue of Notes under this Agreement), duly
      executed by a person or persons authorised to take action on behalf of the
      Issuer as specified in paragraph (2)(b) above, have been delivered to the
      Agent.

6.    A legal opinion addressed to each of the Programme Dealers dated on or
      after the date of this Agreement, in such form and with such content as
      the Programme Dealers may reasonably require, from:

      (a)   Allen & Overy, legal advisers to the Programme as to English law;

      (b)   Cadwalader, Wickersham & Taft, legal advisers to the Guarantor as to
            U.S. law, excluding tax;

      (c)   Weil, Gotshal & Manges, legal advisers to the Guarantor as to U.S.
            law relating to tax; and

      (e)   Maples and Calder Europe, legal advisers to the Issuer as to Cayman
            Islands law.

7.    A copy of a comfort letter from Deloitte & Touche, auditors to the
      Guarantor, in such form and with such content as the Programme Dealers may
      reasonably require.

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                                       191
<PAGE>

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

8.    A conformed copy of this Agreement and confirmation that executed copies
      have been delivered to the Registrar, the Agent and the Paying Agents
      appointed under this Agreement.

9.    A printed final version of the Offering Circular.

10.   Confirmation that the Luxembourg Stock Exchange will list Notes to be
      issued under this Agreement.

11.   Confirmation that Notes with a maturity of more than 365 days to be issued
      under this Agreement will be rated A2 by Moody's Investors Service
      Limited, A by Standard & Poor's Ratings Services and A+ by Fitch IBCA
      Limited and Notes with a maturity of no more than 365 days to be issued
      under this Agreement will be rated P-1 by Moody's Investors Service
      Limited, A-1 by Standard & Poor's Ratings Services and F1 by Fitch IBCA
      Limited.

12.   A Letter from Bear Stearns International Trading Limited confirming its
      acceptance as agent for service of process of the Guarantor and the Issuer
      under this Agreement.

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<PAGE>

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                                   SCHEDULE 12

                 LETTER REGARDING INCREASE IN THE NOMINAL AMOUNT
                                OF THE PROGRAMME

[         ], [ ]

To:   The Programme Dealers and the Listing Agents
      (as those expressions are defined
      in the amended and Amended and Restated Note Issuance Agreement dated
      June 28, 2002, as amended from
      time to time, (the "Note Issuance Agreement"))

Dear Sirs,

             Bear Stearns Global Asset Holdings, Ltd. (the "Issuer")
                The Bear Stearns Companies Inc. (the "Guarantor")
                   U.S.$1,500,000,000 Note Issuance Programme

We notify you, pursuant to clause 12 of the Note Issuance Agreement, that the
aggregate nominal amount of such Programme shall be increased to [U.S.$ ] from
[insert date] whereupon all references in the Note Issuance Agreement. We
understand that this increase is subject to the satisfaction of the conditions
set out in clause 12 of the Note Issuance Agreement.

Terms used in this letter have the meanings given to them in the Note Issuance
Agreement.

Yours faithfully,

For:  Bear Stearns Global Asset Holdings, Ltd.

By:
      ------------------------------

For:  The Bear Stearns Companies Inc.

By:
      ------------------------------

cc:   JPMorgan Chase Bank (Agent)

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<PAGE>

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                                   SCHEDULE 13

                                     PART I

                    FORM OF PROGRAMME DEALER ACCESSION LETTER

[          ], [  ]

To:   Bear Stearns Global Asset Holdings, Ltd.
      The Bear Stearns Companies Inc.

Dear Sirs,

             Bear Stearns Global Asset Holdings, Ltd. (the "Issuer")
                The Bear Stearns Companies Inc. (the "Guarantor")
                   U.S.$1,500,000,000 Note Issuance Programme

We refer to the amended and restated Note Issuance Agreement dated June 28, 2002
made between the Issuer, the Guarantor, the Registrar, the Paying Agents, the
Transfer Agents, the Exchange Agent and the Programme Dealers (which agreement,
as amended from time to time, is referred to in this letter as the "Note
Issuance Agreement").

Conditions Precedent

We confirm that we are in receipt of:

(i)   a copy of the Note Issuance Agreement; and

(ii)  such of the documents referred to in Schedule 11 to the Note Issuance
      Agreement as we have requested,

and have found them to our satisfaction or in the case of documents referred to
in (ii) above have waived such production.

For the purposes of the Note Issuance Agreement our notice details are as
follows:

[(insert name, address, telephone, facsimile, telex (+ answerback) and
attention).]

In consideration of the Issuer appointing us as a Programme Dealer under the
Note Issuance Agreement we undertake, for the benefit of the Issuer, the
Guarantor and each of the other Dealers (as defined in the Note Issuance
Agreement), that we will perform and comply with all the duties and obligations
expressed to be assumed by a Programme Dealer under the Note Issuance Agreement,

This letter is governed by, and shall be construed in accordance with, English
law.

Yours faithfully,
[Name of new Programme Dealer]

By:
      ------------------------------

cc:   JPMorgan Chase Bank (Agent)

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                                       194
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                                     PART II

                 FORM OF CONFIRMATION LETTER - PROGRAMME DEALER

[     ], [  ]

To:   [Name and address of new Programme Dealer]

Dear Sirs,

             Bear Stearns Global Asset Holdings, Ltd. (the "Issuer")
                The Bear Stearns Companies Inc. (the "Guarantee")
                   U.S.$1,500,000,000 Note Issuance Programme

We refer to the amended and restated Note Issuance Agreement dated June 28, 2002
(such agreement, as amended from time to time, the "Note Issuance Agreement")
entered into in respect to the above Note Issuance Programme and acknowledge
receipt of your Dealer Accession Letter to us dated [ ].

In accordance with clause 1l(l)(b) of the Note Issuance Agreement we confirm
that, with effect from the date of this letter, you shall become a party to the
Note Issuance Agreement, vested with all the authority, rights, powers, duties
and obligations of a Programme Dealer as if originally named as a Programme
Dealer under the Note Issuance Agreement.

Yours faithfully,

For:  The Bear Stearns Companies Inc.

By:
      ------------------------------

For:  Bear Stearns Global Asset Holdings, Ltd.

By:
      ------------------------------

cc:   JPMorgan Chase Bank (Agent)

      Bear, Stearns International Limited
      (Arranger, for distribution to the other Programme Dealers)

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                                    PART III

                      FORM OF ISSUE DEALER ACCESSION LETTER

[     ], [  ]

To:   Bear Stearns Global Asset Holdings, Ltd.
      The Bear Stearns Companies Inc.

Dear Sirs,

             Bear Stearns Global Asset Holdings, Ltd. (the "Issuer")
               The Bear Stearns Companies Inc. (the " Guarantor")
                   U.S.$1,500,000,000 Note Issuance Programme

We refer to the amended and restated Note Issuance Agreement dated June 28, 2002
made between the Issuer, the Guarantor, the Registrar, the Paying Agents, the
Transfer Agents, the Exchange Agent and the Programme Dealers (which agreement,
as amended from time to time, is referred to in this letter as the "Note
Issuance Agreement").

Conditions Precedent

We confirm that we are in receipt of:

(i)   a copy of the Note Issuance Agreement; and

(ii)  such of the documents referred to in Schedule 11 to the Note Issuance
      Agreement as we have requested,

and have found them to our satisfaction or in the case of any documents referred
to in (ii) above have waived such production.

For the purposes of the Note Issuance Agreement our notice details are as
follows:

[(insert name, address, telephone, facsimile, telex (+ answerback) and
attention).]

In consideration of the Issuer and appointing us as an Issue Dealer in respect
of the issue of [insert issue details] (the "Notes") under the Note Issuance
Agreement we undertake, for the benefit of the Issuer, the Guarantor and each of
the other Dealers (as defined in the Note Issuance Agreement) that in relation
to the issue of Notes we will perform and comply with all the duties and
obligations expressed to be assumed by an Issue Dealer under the Note Issuance
Agreement.

This letter is governed by, and shall be construed in accordance with, English
law.

Yours faithfully,

For:  [Name of Issue Dealer]

By:
      ------------------------------

cc:   JPMorgan Chase Bank (Agent)

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                                     PART IV

                   FORM OF CONFIRMATION LETTER - ISSUE DEALER

[    ], [  ]

To:   [Name and address of new Issue Dealer]

Dear Sirs,

             Bear Stearns Global Asset Holdings, Ltd. (the "Issuer")
                The Bear Stearns Companies Inc. (the "Guarantor")
                   U.S.$1,500,000,000 Note Issuance Programme

We refer to the amended and restated Note Issuance Agreement dated June 28, 2002
entered into in respect of the above Note Issuance Programme (such agreement, as
amended from time to time, the "Note Issuance Agreement") and acknowledge
receipt of your Issue Dealer Accession Letter to us dated [ ] in respect of the
[insert issue details] (the "Notes").

In accordance with clause 1l(l)(b) of the Note Issuance Agreement we confirm
that, with effect from the date of this letter in respect of the issue of the
Notes, you shall become a party to the Note Issuance Agreement, vested with all
the authority, rights, powers, duties and obligations of an Issue Dealer in
relation to the Notes as if originally named as an Issue Dealer under the Note
Issuance Agreement.

Yours faithfully,

For:  Bear Stearns Global Asset Holdings, Ltd.

By:
      ------------------------------

For:  The Bear Stearns Companies Inc.

By:
      ------------------------------

cc:   JPMorgan Chase Bank (Agent)

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                                       197
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                                   SCHEDULE 14

             DRAFT SYNDICATION AGREEMENT FOR A SYNDICATED NOTE ISSUE

[DATE]

To:   [     ]

      (the "Managers")

c/o   [     ]

      (the "Lead Manager")

cc:   JPMorgan Chase Bank (Agent)

Dear Sirs,

             Bear Stearns Global Asset Holdings, Ltd. (the "Issuer")
                The Bear Stearns Companies Inc. (the "Guarantor")
                   U.S.$1,500,000,000 Note Issuance Agreement

Bear Stearns Global Asset Holdings, Ltd. (the "Issuer") proposes to issue
[description of issue] (the "Notes"), inter alia, pursuant to the Amended and
Restated Note Issuance Agreement dated June 28, 2002 made between the Issuer,
the Guarantor, the Transfer Agents, the Exchange Agent and the Dealers. The
Notes will be unconditionally and irrevocably guaranteed by the Guarantor. The
terms of the issue shall be as set out in the form of Pricing Supplement
attached to this Agreement as Annexe A.

This Agreement is supplemental to the amended and restated Note Issuance
Agreement (the "Note Issuance Agreement") dated June 28, 2002 made between the
Issuer, the Guarantor, the Transfer Agents, the Exchange Agent and the Programme
Dealers party thereto, [as amended at the date of this Agreement]. All terms
with initial capitals used in this agreement without definition have the
meanings given to them in the Note Issuance Agreement.

We wish to record the arrangements agreed between us in relation to the issue:

[1.   Conditions Precedent

This Agreement appoints each Manager which is not a party to the Note Issuance
Agreement (each a "New Dealer") as an Issue Dealer in accordance with the
provisions of clause 11 of the Note Issuance Agreement for the purposes of the
issue of the Notes. [The]/[Each] New Dealer undertakes for the benefit of the
Issuer, the Guarantor and each other Dealer, that in relation to the issue of
the Notes it will perform and comply with all the duties and obligations
expressed to be assumed by an Issue Dealer under the Note Issuance Agreement.
The Lead Manager confirms that it is in receipt of the documents referenced
below:

(i)   a copy of the Note Issuance Agreement;

(ii)  a copy of such of the documents referred to in Schedule 11 to the Note
      Issuance Agreement as the Lead Manager (on behalf of the Managers) has
      requested,

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<PAGE>

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

and has confirmed with [each of] the New Dealer[s] that [it]/[they] [has]/[have]
found them to be satisfactory or (in the case of any or all of the documents
referred to in (ii)) [has]/[have] waived the production of such documents to the
Lead Manager. The Lead Manager confirms (on behalf of the New Dealer[s]) that it
has waived production of any document referred to in Schedule 11 to the Note
Issuance Agreement which it has not so requested.]

[1.]  For the purposes of the Note Issuance Agreement the details of the Lead
      Manager for service of notices are as follows:

      [insert name, address, telephone, facsimile, telex (+ answerback) and
      attention].

2.    Subject to the terms and conditions of the Note Issuance Agreement and
      this Agreement the Issuer hereby agrees to issue the Notes and the
      Managers jointly and severally agree to purchase the Notes [as
      agent/principal] at a purchase price of [ ] per cent. of the principal
      amount of the Notes (the "Purchase Price"), being the issue price of [ ]
      per cent. less a selling concession of [ ] per cent. of such principal
      amount and a management and underwriting fee of [ ] per cent. of such
      principal amount.

3.    The settlement procedures set out in Part 2 of Annexe A to the Procedures
      Memorandum shall apply as if set out in this Agreement provided that, for
      the purposes of this Agreement:

      (i)   the sum payable on the Issue Date shall be [ ] (representing the
            Purchase Price[, less the amount payable in respect of Managers'
            expenses specified in clause 4 of this Agreement]);

      (ii)  "Issue Date" means [ ] a.m. ([ ] time) on [ ] or such other time
            and/or date as the Issuer and the Lead Manager on behalf of the
            Managers may agree; and

      (iii) "Payment Instruction Date" means the Issue Date unless there is to
            be a pre-closing for the issue in which case it means the business
            day (being a day on which banks and foreign exchange markets are
            open for business in London) prior to the Issue Date.

4.    The Issuer, or failing the Issuer, the Guarantor shall bear and pay
      (together with any applicable value added or similar tax) all costs and
      expenses incurred in or in connection with the printing of the Notes, this
      Agreement and the Pricing Supplement prepared in connection with the issue
      of the Notes, the listing of the Notes on the Luxembourg Stock Exchange
      and making initial delivery of the Notes. In addition, the Issuer, or
      failing the Issuer, the Guarantor agrees to pay to the Lead Manager [ ] in
      respect of reasonable legal, travelling, telex, facsimile, telephone,
      postage and advertising expenses incurred and to be incurred by the
      Managers in connection with the preparation and management of the issue
      and distribution of the Notes which sum may be deducted from the Purchase
      Price as provided in clause 3 hereof.

5.    The obligation of the Managers to purchase the Notes is conditional upon:

      (i)   the conditions set out in clause 3(2) (other than that set out in
            clause 3(2)(f)) of the Note Issuance Agreement being satisfied as of
            the Payment Instruction Date, without prejudice to the aforesaid,
            the Offering Circular dated [ ][,as supplemented by [ ],] containing
            all material information relating to the assets and liabilities,
            financial position, profits and losses of the Issuer and the
            Guarantor and nothing having happened or being expected to happen
            which would require the Offering Circular [, as so supplemented,] to
            be [further] supplemented or updated;

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                                       199
<PAGE>

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

      (ii)  the delivery to the Lead Manager on the Payment Instruction Date of:

            (A)   legal opinions addressed to the Managers dated the Payment
                  Instruction Date in such form and with such contents as the
                  Lead Manager, on behalf of the Managers, may reasonably
                  require from [Cadwalader, Wickersham & Taft], the legal
                  advisers to the Guarantor as to U.S. law other than tax,
                  [Weil, Gotshal & Manges], the legal advisers to the Guarantor
                  as to U.S. tax law, [Maples and Calder Europe], the legal
                  advisers to the Issuer as to the law of the Cayman Islands and
                  from [Allen & Overy], the legal advisers to the Managers as to
                  English law;

            (B)   a certificate dated as at the Payment Instruction Date signed
                  by a duly authorised officer of the Issuer and a certificate
                  dated on at the Payment Instruction Date signed by a duly
                  authorised officer of the Guarantor giving confirmation to the
                  effect stated in paragraph (i) of this clause; and

            (C)   a comfort letter dated the [date hereof and the] Payment
                  Instruction Date from the independent auditors of the
                  Guarantor, in such form and with such content as the Managers
                  may reasonably request; and

      (iii) [specify other agreed conditions precedent].

      If any of the foregoing conditions is not satisfied on or before the
      Payment Instruction Date, this Agreement shall terminate on such date and
      the parties hereto shall be under no further liability arising out of this
      Agreement (except for the liability of the Issuer, or failing the Issuer,
      the Guarantor in relation to expenses as provided in clause 4 and except
      for any liability arising before or in relation to such termination),
      provided that the Lead Manager, on behalf of the Managers, may in its
      discretion waive any of the aforesaid conditions or any part of them.

6.    The Lead Manager, on behalf of the Managers, may, by notice to the Issuer
      and the Guarantor, terminate this Agreement at any time prior to payment
      of the net purchase money to the Issuer if in the opinion of the Lead
      Manager there shall have been such a change in national or international
      financial, political or economic conditions or currency exchange rates or
      exchange controls as would in its view be likely to prejudice materially
      the success of the offering and distribution of the Notes or dealings in
      the Notes in the secondary market and, upon such notice being given, the
      parties to this Agreement shall (except for the liability of the Issuer,
      or failing the Issuer, the Guarantor in relation to expenses as provided
      in clause 4 of this Agreement and except for any liability arising before
      or in relation to such termination) be released and discharged from their
      respective obligations under this Agreement.

7.    This Agreement shall be governed by, and construed in accordance with,
      English law. Clauses 47 and 48 of the Note Issuance Agreement shall be
      deemed to be incorporated in this Agreement as if set out in full herein.

8.    This Agreement may be executed in any number of counterparts, all of
      which, taken together, shall constitute one and the same agreement and any
      party may enter into this Agreement by executing a counterpart.

Please confirm that this letter correctly sets out the arrangements agreed
between us.

Yours faithfully,

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                                       200
<PAGE>

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

For:  Bear Stearns Global Asset Holdings, Ltd.

By:
      ------------------------------

For:  The Bear Stearns Companies Inc.

By:
      ------------------------------

We agree to the foregoing.

For:  [NAMES OF MANAGERS]

By:
      ------------------------------

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                                       201
<PAGE>

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                      ANNEXE A TO THE SYNDICATION AGREEMENT

                          [Form of Pricing Supplement]

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                                       202
<PAGE>

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                                   SIGNATORIES

The Issuer

BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.
P.O. Box 309
George Town
Grand Cayman
Cayman Islands
BWI

Telephone:  (212) 272 2123
Telex No:   (212) 272 9705
Attention:  Treasury

By:         SAMUEL MOLINARO

The Guarantor

THE BEAR STEARNS COMPANIES INC.
383 Madison Avenue
New York, NY 10179

Telephone:  (212) 272 2123
Telefax No: (212) 272 9705
Attention:  Treasury

By:         MARK LEHMAN

The Agent and a Transfer Agent

JPMORGAN CHASE BANK
Trinity Tower
9 Thomas More Street
London E1W 1YT

Telephone:  (44) 1 202 34 7430
Telex No:   (44) 1 202 34 7601
Telefax No: 8954681 CMB G
Attention:  Institutional Trust Services

By:         JENNY PENNELL

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

<PAGE>

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

The Registrar, the Other Transfer Agent and the Exchange Agent

JPMORGAN CHASE BANK
450 West 33rd Street
15th Floor
New York, NY 10001

Telephone:  (212) 946 3347
Telefax No: (212) 946 8161
Attention:  Corporate and Municipal Agency Department, 15th Floor

By:         JENNY PENNELL

The other Paying Agents

KREDIETBANK S.A. LUXEMBOURGEOISE
43, Boulevard Royal
L-2955 Luxembourg
R.C. Luxembourg B6395

Telephone:  352 47 971
Telefax No: 352 47 97 73 907
Attention:  Back Office Emissions

By:         THOMAS DOZIN                MARC PEDRETTI

Without prejudice to the foregoing execution of this Agreement by the parties to
this Agreement, Kredietbank S.A. Luxembourg hereby expressly and specifically
confirms its agreement with the provisions of Clause 47 of this Note Issuance
Agreement.

By:         THOMAS DOZIN                MARC PEDRETTI

The Dealers

BEAR, STEARNS & CO. INC.
383 Madison Avenue
New York, NY 10179

Telephone:  (212) 272 2123
Telefax No: (212) 272 9705
Attention:  Treasury

By:         MARK LEHMAN

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

<PAGE>

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

BEAR, STEARNS INTERNATIONAL LIMITED
One Canada Square
London E14 5DB

Telephone:  +44 207 516 6000
Telex No:   8811424 BEARCO G
Telefax No: +44 (171) 516 6030
Attention:  Steve Bartlett

By:         SAMUEL MOLINARO

--------------------------------------------------------------------------------EXHIBIT 4(c)(4)

                                                                  CONFORMED COPY

                               Dated June 28, 2002

                    BEAR STEARNS GLOBAL ASSET HOLDINGS, LTD.

                             NOTE ISSUANCE AGREEMENT

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

                                DEED OF COVENANT

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

                                  ALLEN & OVERY
                                    New York

<PAGE>

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

                                DEED OF COVENANT

THIS DEED OF COVENANT is given by way of deed poll on June 28, 2002 by BEAR
STEARNS GLOBAL ASSET HOLDINGS, LTD. (the "Issuer") in favour of the account
holders specified below of Clearstream Banking, societe anonyme and Euroclear
Bank S.A./N.V., as operator of the Euroclear system and/or any other additional
clearing system or systems as are specified in the Pricing Supplement relating
to any Note (as defined below) (each a "Clearing System").

WHEREAS:

(A)   The Issuer has entered into a Note Issuance Agreement dated June 24, 1997
      and subsequently amended and restated on June 30, 2000 and as further
      amended and restated on June 28, 2002 (the "Note Issuance Agreement",
      which expression includes the same as it may be amended, restated or
      supplemented from time to time) with, inter alios, the Dealers and the
      Agents named therein under which the Issuer proposes from time to time to
      issue Notes (the "Notes").

(B)   The Bearer Notes will initially be represented by, and comprised in,
      Temporary Bearer Global Notes (the "Temporary Global Notes") and
      thereafter may be represented by, and comprised in, Permanent Bearer
      Global Notes (the "Permanent Global Notes", the Temporary Global Notes and
      Permanent Global Notes being herein together called the "Global Notes")
      representing a certain number of underlying Bearer Notes (the "Underlying
      Notes").

(C)   Each Global Note may, after issue, be deposited with a depositary for one
      or more Clearing Systems (each such Clearing System or all such Clearing
      Systems together, the "Relevant Clearing System"). Upon such deposit of a
      Global Note, the Underlying Notes represented by such Global Note will be
      credited to a securities account or securities accounts with the Relevant
      Clearing System. Any account holder with the Relevant Clearing System
      which has Underlying Notes credited to its securities account from time to
      time (each a "Relevant Account Holder") will, subject to and in accordance
      with the terms and conditions and operating procedures or management
      regulations of the Relevant Clearing System, be entitled to transfer such
      Underlying Notes and (subject to and upon payment being made by the Issuer
      to the bearer in accordance with the terms of the relevant Global Note)
      will be entitled to receive payments from the Relevant Clearing System
      calculated by reference to the Underlying Notes credited to its securities
      account.

(D)   In certain circumstances specified in each Global Note, a Global Note will
      become void. The time at which a Global Note becomes void is hereinafter
      referred to as the "Relevant Time". In such circumstances each Relevant
      Account Holder will, subject to and in accordance with the terms of this
      Deed, acquire against the Issuer all those rights which such Relevant
      Account Holder would have had if, prior to the Global Note becoming void,
      duly executed and authenticated Definitive Bearer Note(s) (as defined in
      the Note Issuance Agreement) and, if the Notes are repayable in
      instalments, receipts in respect thereof (the "Receipts") and interest
      coupons (the "Coupons") appertaining to the Definitive Bearer Note(s) (if
      appropriate) had been issued in respect of its Underlying Note(s) and such
      Definitive Bearer Notes(s), Receipts (if appropriate) and Coupons (if
      appropriate) were held and beneficially owned by such Relevant Account
      Holder.

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                                       1
<PAGE>

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(E)   The obligations of the Issuer under this Deed have been unconditionally
      and irrevocably guaranteed by The Bear Stearns Companies Inc. (the
      "Guarantor") pursuant to the Deed of Guarantee executed by the Guarantor
      on June 29th, 2001, as amended from time to time (the "Guarantee"). An
      executed copy of the Guarantee has been deposited with and shall be held
      by the Agent on behalf of, inter alia, the Noteholders, Couponholders and
      Receiptholders from time to time and for the time being at its specified
      office (being at the date hereof at Trinity Tower, 9 Thomas More Street,
      London E1W 1YT) and a copy of the Guarantee shall be available for
      inspection at such specified office and at the specified office of each of
      the other agents named in the Note Issuance Agreement.

NOW THIS DEED WITNESSES AS FOLLOWS:

1.    (a)   Terms defined in the Note Issuance Agreement and used herein shall
            have the same meaning, unless the context otherwise requires.

      (b)   If any Global Note becomes void in accordance with the terms thereof
            the Issuer hereby undertakes and covenants with each Relevant
            Account Holder (other than when any Relevant Clearing System is an
            account holder of any other Relevant Clearing System) that each
            Relevant Account Holder shall automatically acquire at the Relevant
            Time, without the need for any further action on behalf of any
            person, against the Issuer all those rights which such Relevant
            Account Holder would have had if at the Relevant Time it held and
            beneficially owned duly executed and authenticated Definitive Bearer
            Note(s), Receipts (if appropriate) and Coupons (if appropriate) in
            respect of each Underlying Note represented by such Global Note
            which such Relevant Account Holder has credited to its securities
            account with the Relevant Clearing System at the Relevant Time. The
            Issuer's obligation pursuant to this clause shall be a separate and
            independent obligation by reference to each Underlying Note which a
            Relevant Account Holder has credited to its securities account with
            the Relevant Clearing System and the Issuer agrees that a Relevant
            Account Holder may assign its rights hereunder in whole or in part.

2.    The records of the Relevant Clearing System shall be conclusive evidence
      of the identity of the Relevant Account Holders and the number of
      Underlying Notes credited to the securities account of each Relevant
      Account Holder. For the purposes hereof a statement issued by the Relevant
      Clearing System stating:

      (i)   the name of the Relevant Account Holder to which such statement is
            issued; and

      (ii)  the aggregate nominal amount of Underlying Notes credited to the
            securities account of such Relevant Account Holder as at the opening
            of business on the first day following the Relevant Time on which
            the Relevant Clearing System is open for business,

      shall be conclusive evidence of the records of the Relevant Clearing
      System at the Relevant Time.

3.    In the event of a dispute, the determination of the Relevant Time by the
      Relevant Clearing System (in the absence of manifest error) shall be final
      and conclusive for all purposes in connection with the Relevant Account
      Holders with securities accounts with the Relevant Clearing System.

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

                                       2
<PAGE>

4.    The Issuer will pay to each Relevant Account Holder who is not resident in
      the country in which the Issuer is organised or is a United States Alien
      (as defined below) such additional amounts ("Additional Amounts") as may
      be necessary in order that every net payment of the principal of and
      interest on Underlying Notes held by such person, after deduction or
      withholding for or on account of any present or future tax, assessment or
      governmental charge imposed upon or as a result of such payment by the
      country in which the Issuer is organised, or any political subdivision or
      taxing authority thereof or therein, will not be less than the amount
      provided for in such Notes then due and payable before any such tax,
      assessment or other governmental charge; provided that the foregoing
      obligation to pay Additional Amounts will not apply to:

      (a)   any tax, assessment or other governmental charge which would not
            have been so imposed but for:

            (i)   the existence of any present or former connection between such
                  Holder (or between a fiduciary, settlor, beneficiary, member,
                  partner or shareholder of, or possessor of a power over such
                  Holder, if such Holder is an estate, trust, partnership or
                  corporation) and the country in which the Issuer is organised,
                  including, without limitation, such holder (or such fiduciary,
                  settlor, beneficiary, member, shareholder or possessor) being
                  or having been a citizen or resident of the country in which
                  the Issuer is organised or treated as a resident thereof, or
                  being or having been engaged in trade or business or present
                  therein, or having or having had a permanent establishment
                  therein or making or having made an election the effect of
                  which is to subject such holder or beneficial owner (or such
                  fiduciary, settlor, beneficiary, member, shareholder or
                  possessor) to such tax, assessment or other governmental
                  charge;

            (ii)  the failure of such Holder or beneficial owner of Underlying
                  Notes to comply with any requirement under income tax
                  treaties, statutes and regulations or administrative practice
                  of the country in which the Issuer is organised, to establish
                  entitlement to exemption from or reduction of such tax,
                  assessment or other governmental charge; or

            (iii) payment being made in the Cayman Islands or the United States
                  (as the case may be) or otherwise than to an account with a
                  bank outside the United States on Underlying Notes;

      (b)   any tax, assessment or other governmental charge which would not
            have been so imposed but for the presentation by the Relevant
            Account Holder of such Underlying Notes for payment on a date more
            than 10 days after the date on which such payment becomes due and
            payable or the date on which payment thereof is duly provided for
            and notice is given to Noteholders, whichever occurs later;

      (c)   any estate, inheritance, gift, sales, transfer, personal property or
            similar tax, assessment or governmental charge;

      (d)   any tax, assessment or other governmental charge which is payable
            otherwise than by deduction or withholding from payments of
            principal of or interest on such Underlying Notes;

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

                                       3
<PAGE>

      (e)   any tax, assessment or other governmental charge which is payable by
            a Relevant Account Holder that is not the beneficial owner of the
            Underlying Notes or a portion of either, or that is a foreign or
            fiduciary partnership, but only to the extent that a beneficial
            owner, settlor with respect to such fiduciary or member of the
            partnership would not have been entitled to the payment of an
            Additional Amount had the beneficial owner or member received
            directly its beneficial or distributive share of the payment;

      (f)   any tax, assessment or other governmental charge required to be
            withheld by any Paying Agent from any payment of the principal of or
            interest on any Underlying Notes, if such payment can be made
            without such withholding by any other Paying Agent;

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

      (h)   any Note, Receipt or Coupon presented for payment by or on behalf of
            a holder who would be able to avoid such withholding or deduction by
            presenting the relevant Note, Receipt or Coupon to another Paying
            Agent in a European Union member state;

      (i)   any tax, assessment or other governmental charge which would not
            have been so imposed but for the Underlying Notes being treated as
            anything other than a debt instrument for U.S. federal income tax
            purposes; or

      (j)   any combination of items (a), (b), (c), (d), (e), (f), (g), (h) and
            (i).

      For the purposes of the foregoing, the holding of or the receipt of any
      payment with respect to Underlying Notes will not constitute a connection
      between the Relevant Account Holder (or between a fiduciary, settlor,
      beneficiary, member or shareholder of, or a person having a power over,
      such Holder if such Holder is an estate, a trust, a partnership or a
      corporation) and the Cayman Islands. Further, "United States Alien" means
      any person who, for United States federal income tax purposes, is a
      foreign corporation, a non-resident alien individual, a foreign estate or
      trust subject to withholding under Sections 1441 or 1442 of the Internal
      Revenue Code, or a foreign partnership one or more of the members of which
      is, for United States federal income tax purposes, a foreign corporation,
      a non-resident alien individual or a foreign estate or trust subject to
      withholding under Sections 1441 or 1442 of the Internal Revenue Code.

      Except as specifically provided herein, the Issuer will not be required to
      make any payment with respect to any tax, assessment or other governmental
      charge imposed by any government or any political subdivision or taxing
      authority thereof or therein. References herein to principal and/or
      interest shall be deemed also to refer to any Additional Amounts which may
      be payable under this Clause.

5.    The Issuer will pay any stamp and other duties and taxes, including
      interest and penalties, payable on or in connection with the execution of
      this Deed and any action taken by any Relevant Account Holder to enforce
      the provisions of this Deed.

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

                                       4
<PAGE>

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

6.    The Issuer hereby warrants, represents, and covenants with each Relevant
      Account Holder that it has all corporate power, and has taken all
      necessary corporate or other steps, to enable it to execute, deliver and
      perform this Deed, and that this Deed constitutes a legal, valid and
      binding obligation of the Issuer enforceable in accordance with its terms
      subject to the laws of bankruptcy and other laws affecting the rights of
      creditors generally.

7.    This Deed shall take effect as a Deed Poll for the benefit of the Relevant
      Account Holders from time to time and for the time being. This Deed shall
      be deposited with and held by the depositary for the Relevant Clearing
      System until all the obligations of the Issuer hereunder have been
      discharged in full.

8.    The Issuer hereby acknowledges right of every Relevant Account Holder to
      the the production of, and the right of every Relevant Account Holder to
      obtain (upon payment of a reasonable charge) a copy of, this Deed, and
      further acknowledges and covenants that the obligations binding upon it
      contained herein are owed to, and shall be for the account of, each and
      every Relevant Account Holder, and that each Relevant Account Holder shall
      be entitled severally to enforce the said obligations against the Issuer.

9.    This Deed is governed by, and shall be construed in accordance with, the
      laws of England.

      The Issuer hereby irrevocably agrees, for the exclusive benefit of the
      Relevant Account Holders, that the courts of England are to have
      jurisdiction to settle any disputes which may arise out of or in
      connection with this Deed and that accordingly any suit, action or
      proceedings (together referred to as "Proceedings") arising out of or in
      connection with this Deed may be brought in such courts.

      The Issuer hereby irrevocably waives any objection which it may have now
      or hereafter to the laying of the venue of any such Proceedings in any
      such court and any claim that any such Proceedings have been brought in an
      inconvenient forum and hereby further irrevocably agrees that a judgment
      in any such Proceedings brought in the English courts shall be conclusive
      and binding upon it and may be enforced in the courts of any other
      jurisdiction. Nothing contained in this clause shall limit any right to
      take Proceedings against the Issuer in any other court of competent
      jurisdiction, nor shall the taking of Proceedings in one or more
      jurisdictions preclude taking of the Proceeding in any other jurisdiction,
      whether concurrently or not.

      The Issuer hereby appoints Bear Stearns International Trading Limited at
      its registered office at One Canada Square, London E14 5DB as its agent
      for service of process, and undertakes that, in the event of Bear Stearns
      International Trading Limited ceasing so to act or ceasing to be
      registered in England, it will appoint another person as its agent for
      service of process in England in respect of any Proceedings.

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                                       5
<PAGE>

IN WITNESS whereof the Issuer has caused this Deed to be duly executed the day
and year first above mentioned.

EXECUTED as a deed                )
by BEAR STEARNS GLOBAL            )
ASSET HOLDINGS, LTD.              )   SAMUEL MOLINARO
acting by                         )
acting under                      )
the authority of the Company,     )
in the presence of:

Witness:       KAREN SMITH
Name:

Address:       383 Madison Avenue, New York, NY 10179
Occupation:    Legal Secretary

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                                       6

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