Document:

Second Amended and Restated Limited Liability Company Agreement

 Exhibit 10(g) 
  
  
 SECOND AMENDED AND RESTATED 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
 ONCOR ELECTRIC DELIVERY HOLDINGS COMPANY LLC 
 Dated as of November 5, 2008 
  
  

 Table of Contents 
  

					
	 	 	 	  	Page
	Section 1.	 	Name	  	1
	Section 2.	 	Principal Business Office	  	1
	Section 3.	 	Registered Office	  	1
	Section 4.	 	Registered Agent	  	1
	Section 5.	 	Fiscal Year	  	1
	Section 6.	 	Members	  	2
	Section 7.	 	Certificate of Formation	  	2
	Section 8.	 	Purpose	  	3
	Section 9.	 	Powers	  	3
	Section 10.	 	Management	  	3
	Section 11.	 	Independent Directors.	  	12
	Section 12.	 	Officers	  	12
	Section 13.	 	Limited Liability	  	13
	Section 14.	 	Capital Contributions	  	13
	Section 15.	 	Additional Contributions	  	14
	Section 16.	 	Tax Classification and Allocations of Profits and Losses	  	14
	Section 17.	 	Distributions	  	14
	Section 18.	 	Books and Records	  	15
	Section 19.	 	Reports	  	15
	Section 20.	 	Other Business	  	15
	Section 21.	 	Exculpation and Indemnification	  	16
	Section 22.	 	Assignments	  	17
	Section 23.	 	Resignation	  	17
	Section 24.	 	Admission of Additional Members	  	17
	Section 25.	 	Dissolution	  	17
	Section 26.	 	Waiver of Partition; Nature of Interest	  	18
	Section 27.	 	Benefits of Agreement; No Third-Party Rights	  	18
	Section 28.	 	Severability of Provisions	  	19
	Section 29.	 	Entire Agreement	  	19
	Section 30.	 	Binding Agreement	  	19
	Section 31.	 	Governing Law	  	19
	Section 32.	 	Amendments	  	19
	Section 33.	 	Counterparts	  	19
	Section 34.	 	Notices	  	19

 Schedules: 
  

			
	Schedule A	 	Definitions
	Schedule B	 	Member
	Schedule C	 	Management Agreement
	Schedule D	 	Directors
	Schedule E	 	Officers
	Schedule F	 	Members of Nominating Committee

 SECOND AMENDED AND RESTATED 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
 ONCOR ELECTRIC DELIVERY HOLDINGS COMPANY LLC 
 This Second Amended and Restated Limited Liability Company Agreement (together with the schedules attached hereto, this “Agreement”) of ONCOR ELECTRIC DELIVERY HOLDINGS COMPANY LLC (the “Company”), is
entered into as of November 5, 2008 by ENERGY FUTURE INTERMEDIATE HOLDING COMPANY LLC, as the sole equity member (the “Initial Member”), and William T. Hill, Jr, and Richard W. Wortham III, as the Special Members (as defined on
Schedule A hereto). Capitalized terms used and not otherwise defined herein have the meanings set forth on Schedule A hereto. 
 The Member, by execution of this Agreement, hereby continues the Company as a limited liability company pursuant to and in accordance with the Delaware Limited Liability Company Act (6 Del. C. 18-101 et seq.), as
amended from time to time (the “Act”), and hereby amends and restates the Amended and Restated Limited Liability Company Agreement of the Company dated as of October 10, 2007, and the Member and the Special Members hereby agree
as follows: 
 Section 1. Name. 
 The name of the limited liability company continued hereby is ONCOR ELECTRIC DELIVERY HOLDINGS COMPANY LLC. 
 Section 2. Principal Business Office. 
 The principal business office of the Company shall be located at 1601 Bryan
Street, Dallas, Texas 75201 or such other location as may hereafter be determined by the Member. 
 Section 3. Registered Office.

 The address of the registered office of the Company in the State of Delaware is c/o RL&F Service Corp., One Rodney Square, in the City
of Wilmington, County of New Castle, Delaware 19801. 
 Section 4. Registered Agent. 
 The name and address of the registered agent of the Company for service of process on the Company in the State of Delaware is RL&F Service Corp., One
Rodney Square, in the City of Wilmington, County of New Castle, Delaware 19801. 
 Section 5. Fiscal Year. 
 Unless otherwise determined by the Board, the fiscal year of the Company shall be the calendar year. 

 Section 6. Members. 
 (a) The mailing address of the Member is set forth on Schedule B attached hereto. The Member was heretofore admitted to the Company as a member of the Company upon the execution of an instrument of transfer
relating to the transfer of the limited liability company interests in the Company from Energy Future Holdings Corp. (formerly known as TXU Corp.) to the Member on October 9, 2007 (the “LLC Interest Transfer”), and hereby
continues as such. 
 (b) Subject to Section 10(i), the Member may act by written consent. 
 (c) Upon the occurrence of any event that causes the Member to cease to be a member of the Company (other than upon continuation of the Company without
dissolution upon (i) an assignment by the Member of all of its limited liability company interest in the Company and the admission of a transferee of such interest pursuant to Sections 22 and 24, or (ii) the resignation of the
Member and the admission of an additional member of the Company pursuant to Sections 23 and 24), each person designated as a Special Member on the signature pages hereof or on the signature pages of a counterpart hereto, shall, without any
action of any Person and simultaneously with the Member ceasing to be a member of the Company, automatically be admitted to the Company as a member and shall continue the Company without dissolution. No Special Member may resign from the Company or
transfer its rights as Special Member unless a successor Special Member has been admitted to the Company as Special Member by executing a counterpart to this Agreement; provided, however, that the Special Members acting as members of the Company
shall automatically cease to be members of the Company upon the admission to the Company of a substitute Member appointed by the personal or duly authorized representative of the Person that had been the last remaining Member. Each Special Member
shall be a member of the Company that has no interest in the profits, losses and capital of the Company and has no right to receive any distributions of Company assets. Pursuant to Section 18-301 of the Act, a Special Member shall not be
required to make any capital contributions to the Company and shall not receive a limited liability company interest in the Company. A Special Member, in its capacity as a member of the Company, may not bind the Company other than any binding act
necessary to admit a substitute Member. Except as required by any mandatory provision of the Act, each Special Member, in its capacity as a member of the Company, shall have no right to vote on, approve or otherwise consent to any action by, or
matter relating to, the Company, including, without limitation, the merger, consolidation or conversion of the Company. In order to implement the admission to the Company of each Special Member as a member of the Company, each Special Member shall
execute a counterpart to this Agreement. Prior to its admission to the Company as a member, no Special Member shall be a member of the Company. 
 Section 7. Certificate of Formation. 
 Jared Richardson, an “authorized person” within the meaning of the Act,
executed, delivered and filed the Certificate of Formation of the Company with the Secretary of State of the State of Delaware. Upon the filing of the Certificate of Formation with the Secretary of State of the State of Delaware, his powers as an
“authorized person” ceased, and Energy Future Holdings Corp. (formerly known as TXU Corp.) thereupon became a member of the Company and the designated “authorized person.” Upon the LLC Interest Transfer, Energy Future Holdings
Corp.’s powers as an “authorized person” ceased, and the Member thereupon became a 

  

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member of the Company and the designated “authorized person” and shall continue as the designated “authorized person” within the meaning
of the Act. The Member or an Officer shall execute, deliver and file any other certificates (and any amendments and/or restatements thereof) necessary for the Company to qualify to do business in Texas and in any other jurisdiction in which the
Company may wish to conduct business. 
 The existence of the Company as a separate legal entity shall continue until cancellation of the
Certificate of Formation as provided in the Act. 
 Section 8. Purpose. 
 Subject to Section 10(i), the purpose of the Company is limited to acting as member of, and holding limited liability company interests in,
Oncor Electric Delivery Company LLC, a Delaware limited liability company (“Oncor Electric Delivery”), and such other special purpose entities as are necessary to further the business of Oncor Electric Delivery; provided, however,
that any such other special purposes entities shall be prohibited from incurring any indebtedness for borrowed money. 
 Section 9.
Powers. 
 Subject to Section 10(i), the Company, and the Board of Directors and the Officers of the Company on behalf of
the Company, (i) shall have and exercise all powers necessary, convenient or incidental to accomplish its purposes as set forth in Section 8 and (ii) shall have and exercise all of the powers and rights conferred upon limited
liability companies formed pursuant to the Act; provided, however, that the Company shall not have the power or right to incur indebtedness for borrowed money. 
 Section 10. Management. 
 (a) Board of Directors. Subject to Section 10(i),
the business and affairs of the Company shall be managed by or under the direction of the Board and not by or under the direction of any EFH Group member or any officer or employee thereof. The Board shall have at least nine (9) Directors, each
of which shall be a natural person: 
  

	 	(i)	one (1) of which Directors will be an officer of the Company designated by the Member; 

  

	 	(ii)	at least six (6) of which Directors will be Independent Directors (at least two of which will be Special Independent Directors) designated at the direction, in writing, of the
Nominating Committee; and 

  

	 	(iii)	any remaining Directors will be designated by the Member (such Director, together with the Director who is an officer of the Company, the “Member Directors”).

 The nine (9) Directors as of the date hereof are listed on Schedule D hereto. Each Director elected, designated,
nominated or appointed in accordance with this Agreement shall hold office (1) until a successor is elected, designated, nominated or appointed and 

  

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qualified in accordance with this Agreement, (2) in the case of an Independent Director or a Special Independent Director, until such Director fails to
qualify as an Independent Director or Special Independent Director, as applicable, or (3) until such Director’s earlier death, resignation, expulsion or removal. Each Director shall execute and deliver the Management Agreement. No Director
shall be required to be a Member. No Director may concurrently serve as a director of any Subsidiary of Texas Competitive Electric Holdings Company LLC, including any entity that Luminant Holding Company LLC or TXU Energy Company LLC controls.

 (b) Powers. Subject to Section 10(i), the Board shall have the power to do any and all acts necessary, convenient or
incidental to or for the furtherance of the purposes described herein, including all powers, statutory or otherwise. The Board has the authority to bind the Company. To the extent of their powers set forth in this Agreement and subject to
Section 10(i), the Directors are agents of the Company for the purpose of the Company’s business, and the actions of the Directors taken in accordance with such powers set forth in this Agreement shall bind the Company.
Notwithstanding the last sentence of Section 18-402 of the Act, except as provided in this Agreement or in a resolution of the Directors, a Director may not bind the Company. 
 (c) Meetings of the Board. The Board may hold meetings, both regular and special, within or outside the State of Delaware. Regular meetings of the
Board may be held at such time and at such place as shall from time to time be determined by the Board and communicated in writing to each Director; provided, that, upon such communication to each Director of the Board’s
determination of the time and place of a regular meeting, no further notice of any regular meeting to be held at such time and place need be given to any Director, but if the Board determines to make any change with respect to the time or place of a
regular meeting, five (5) days’ notice of such change shall be communicated in writing to each Director before such change becomes effective. Special meetings of the Board may be called by the Chief Executive Officer on not less than five
(5) days’ written notice to each Director by facsimile, mail, telegram or any other means of written communication, and special meetings shall be called by the Chief Executive Officer, the President or the Secretary in like manner and with
like notice upon the written request of any one or more of the Directors; provided, that, notice of a special meeting shall not be required if waived by all Directors, which waiver shall be assumed for any Director attending such
special meeting, unless attending to object to such meeting. 
 (d) Quorum; Acts of the Board. Subject to Section 10(i),
at all meetings of the Board, a majority of the Directors shall constitute a quorum for the transaction of business and, except as otherwise provided in any other provision of this Agreement, the act of a majority of the Directors present at any
meeting at which there is a quorum shall be the act of the Board. If a quorum shall not be present at any meeting of the Board, the Directors present at such meeting may adjourn the meeting from time to time, without notice other than announcement
at the meeting, until a quorum shall be present. Any action required or permitted to be taken at any meeting of the Board or of any committee thereof may be taken without a meeting if all members of the Board or committee, as the case may be,
consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Board or committee, as the case may be. 
  

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 (e) Electronic Communications. Members of the Board, or any committee designated by the Board, may
participate in meetings of the Board, or any committee, by means of telephone conference or similar communications equipment that allows all Persons participating in the meeting to hear each other, and such participation in a meeting shall
constitute presence in person at the meeting. If all the participants are participating by telephone conference or similar communications equipment, the meeting shall be deemed to be held at the principal place of business of the Company.

 (f) Committees of Directors. 
  

	 	(i)	The Board may, by resolution passed by a majority of the whole Board, designate one or more committees, each committee to consist of one or more of the Directors of the Company. The
Board may designate one or more Directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. Notwithstanding the foregoing, the Board shall establish a standing committee (the
“Nominating Committee”), a majority of whose members shall, at all times, be Independent Directors, whose purpose shall be (A) to nominate and appoint, and to fill vacancies on the Board in respect of, the Independent
Directors, including the Special Independent Directors, of the Company, and (B) to nominate and appoint, and to fill vacancies on the board of directors of Oncor Electric Delivery in respect of, the independent directors, including the special
independent directors, of Oncor Electric Delivery. The members of the Nominating Committee as of the date hereof are listed on Schedule F hereto. 

  

	 	(ii)	In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such members
constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of any such absent or disqualified member. 

  

	 	(iii)	Any such committee, to the extent provided in the resolution of the Board designating such committee, and subject to, in all cases, Sections 10(i) and 11, shall have
and may exercise all the powers and authority of the Board in the management of the business and affairs of the Company specified in the resolution of the Board designating such committee. Such committee or committees shall have such name or names
as may be determined from time to time by resolution adopted by the Board. Each committee shall keep regular minutes of its meetings and report the same to the Board when required. 

 (g) Compensation of Directors; Expenses. The Board shall have the authority to fix the compensation of Directors. The Directors may be paid their
expenses, if any, of attendance at meetings of the Board, which may be a fixed sum for attendance at each meeting of the Board or a stated salary as Director. No such payment shall preclude any Director from serving the Company in any other capacity
and receiving compensation therefor. Members of special or 

  

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standing committees may be allowed additional compensation for attending committee meetings. Chairpersons of standing or special committees may receive
compensation, in their capacities as such chairpersons, in addition to any compensation received as a member of any such committee. 
 (h)
Removal of Directors. Unless otherwise restricted by Law, and subject to Section 11, (i) any Director or the entire Board may be removed or expelled, with or without cause, at any time by the Member, and (ii) any vacancy
caused by any such removal or expulsion, or otherwise, may be filled by action of the Member; provided that Independent Directors, including Special Independent Directors, may be removed or expelled, and vacancies in respect of any Independent
Director, including any Special Independent Director, may be filled, only at the direction, in writing, of the Nominating Committee. 
 (i)
Limitations on the Company’s Activities. 
  

	 	(i)	The Company shall not take any of the actions set forth below, and, for so long as the Company qualifies as a Principal Member of Oncor Electric Delivery, shall not permit Oncor
Electric Delivery to take any actions set forth in Section 10(i)(i) or Section 10(i)(ii) of the Oncor Electric Delivery LLC Agreement, in each case without the prior written consent of the Initial Member: 

  

	 	(A)	continue the Company or any of its Subsidiaries under the Laws of another jurisdiction; 

  

	 	(B)	enter into or authorize any material transactions with a third party outside the ordinary course of business including, but not limited to, mergers or acquisitions, substantial
dispositions or transfers, or any material investment in any partnership, consortium, joint venture or other similar enterprise; 

  

	 	(C)	authorize, issue, sell, acquire, repurchase or redeem any limited liability company interests or other equity interest (or option, warrant, conversion or similar right with respect
to or based upon the value of any equity interest) in or of the Company or any of its Subsidiaries; 

  

	 	(D)	unless required by Law or a change in generally accepted accounting principles (“GAAP”), make any material change in the accounting methods of the Company or any of
its Subsidiaries; 

  

	 	(E)	cause the Company or any of its Subsidiaries to be treated as a corporation for federal income tax purposes under Treasury Regulations Section 301.7701-3;

  

	 	(F)	cause any of the Company’s Subsidiaries’ facilities, assets or paper facilities in the Energy Reliability Council of Texas region to become subject to any greater scope or
degree of jurisdiction of the Federal Energy Regulatory Commission than the scope or degree of jurisdiction exercised on January 1, 2007; 

  

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	 	(G)	waive or fail to enforce in a commercially reasonable manner any rights or claims to a material payment against any party arising under the Tax Sharing Agreement; or

  

	 	(H)	enter into any contract, arrangement, understanding or other similar agreement to effectuate any of the foregoing. 

  

	 	(ii)	So long as any Obligation is outstanding, the Member shall not (A) amend, alter, change or repeal Sections 10(b) through (h) or 27, or the definitions
in Schedule A of this Agreement that relate to the foregoing Sections referred to in this clause (A), in each case without the written consent of a majority of the Board and of the Initial Member, or (B) amend, alter, change or repeal
the definitions of “Independent Director” or “Special Independent Director”; Sections 6(c), 8, 9, 10(a), 10(i) (except as set forth in Section 10(i)(v)(F), 11, 12,
13, 21, 23, 25, 26 or 30; any provision hereof that states that it is subject to Section 10(i) if such amendment would cause such provision no longer to be subject to Section 10(i);
or the definitions in Schedule A of this Agreement that relate to the foregoing Sections referred to in this clause (B), in each case without the written consent of (1) a majority of the Board, (2) all Independent Directors and
(3) the Initial Member; provided, that the Member may amend any provision hereof reasonably required in good faith to accommodate the admission of any additional Member, other than an Affiliate of Energy Future Holdings Corp. (including the
establishment of relative voting rights of the Members and an increase in the number of Directors, including Independent Directors), but no such amendment shall (1) limit the obligation of the Company to comply with the Separateness
Undertakings (defined below), or (2) otherwise limit the rights and powers of the Independent Directors. Except as provided in the foregoing sentence, the Member reserves the right to amend, alter, change or repeal any provisions contained in
this Agreement in accordance with Section 32. 

  

	 	(iii)	Notwithstanding any other provision of this Agreement and any provision of Law that otherwise so empowers the Company, the Member, the Board, any Officer or any other Person,
neither the Member nor the Board nor any Officer nor any other Person shall be authorized or empowered, nor shall they permit the Company or any of its Subsidiaries without (a) the prior written consent of the Initial Member, and (b) the
affirmative vote of all of the Directors present and voting (which shall in any event include all Independent Directors), to take any Material Action. 

  

	 	(iv)	 The Board and the Member shall cause the Company to do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights
(charter and statutory) and franchises as well as the 

  

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existence, rights (charter and statutory) and franchises of its Subsidiaries; provided, however, that the Company shall not be required to
preserve any such right or franchise if the Board shall determine that the preservation thereof is no longer desirable for the conduct of its business and that the loss thereof is not disadvantageous in any material respect to the Company.

  

	 	(v)	To ensure separateness from the EFH Group, so long as any Obligation is outstanding, the Board and the Member shall use their best efforts to cause the Company to take or refrain
from taking, as the case may be, the following actions (clauses (A) through (BB) below are collectively referred to as the “Separateness Undertakings”): 

  

	 	(A)	at all times hold itself out to the public and all other Persons as a legal entity separate from the Member and any other Person; 

  

	 	(B)	use stationery, invoices, checks, logos and other business forms separate from any EFH Group member; 

  

	 	(C)	not transfer any material assets or facilities to any EFH Group member, other than any such transfer that is (w) both on a commercially reasonable basis and approved by a
majority of the Directors; (x) pursuant to an agreement allowed, with respect to transactions with EFH Group members, under clause (E) below; (y) allowed, with respect to distributions, under Section 17 hereof; or
(z) allowed, with respect to taxes, under clause (BB) below; 

  

	 	(D)	not enter into any pledge, encumbrance or guaranty, or otherwise become intentionally liable for, or pledge or encumber its assets to secure the liability, debts or obligations of
any EFH Group member; 

  

	 	(E)	maintain an arm’s-length relationship with the EFH Group members and only enter into transactions with the EFH Group members that are both (1) on a commercially reasonable
basis and (2) if such transaction is material, approved by a majority of the Directors, other than (a) distributions by the Company in accordance with Section 17 hereof, (b) the Reimbursement Agreements, and
(c) payments by the Company pursuant to clause (BB) below, all of which shall in all events be permitted hereunder; 

  

	 	(F)	not amend or modify Section 17, except as approved by the Member and at least a majority of the Board of Directors present and voting, which approval must include a
majority of the Independent Directors and all of the Member Directors (other than Directors appointed by any Member holding a minority interest in the Company); 

  

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	 	(G)	not hold out its credit as being available to satisfy the debts or obligations of any EFH Group member; 

  

	 	(H)	maintain accurate books, financial records and accounts, including checking and other bank accounts and custodian and other securities safekeeping accounts, that are separate and
distinct from those of any other entity, except for other Ring-Fenced Entities; 

  

	 	(I)	maintain its books, financial records and accounts (including inter-entity transaction accounts) in a manner so that it will not be difficult or costly to segregate, ascertain or
otherwise identify its assets and liabilities from those of the EFH Group; 

  

	 	(J)	not commingle any of its facilities, assets, funds or liabilities with the facilities, assets, funds or liabilities of the EFH Group members; 

  

	 	(K)	observe appropriate organizational procedures and formalities, including holding at least annual meetings or actions pursuant to written consent of the Board and keeping minutes of
such meetings and actions; 

  

	 	(L)	cause all material transactions and agreements between it and any one or more of the EFH Group members (including transactions and agreements pursuant to which the assets or
property of one is used or to be used by the other) to be entered into in the names of the entities that are parties to the transaction or agreement and to be formally documented in writing; 

  

	 	(M)	except with respect to shared expenses and corporate functions covered by clauses (P) through (S) below, conduct transactions with the EFH Group members and third parties
in its name and as an entity that is separate and distinct from the EFH Group members; 

  

	 	(N)	except with respect to shared expenses and corporate functions covered by clauses (P) through (S) below, pay its own liabilities, expenses and losses only from its own
assets; 

  

	 	(O)	except with respect to shared expenses and corporate functions covered by clauses (P) through (S) below, compensate all consultants, independent contractors and agents
from its own funds for services provided to it by such consultants, independent contractors and agents; 

  

	 	(P)	 to the extent that it and EFH Group members jointly contract or do business with vendors or service providers or share overhead expenses, allocate fairly,
appropriately and reasonably the costs 

  

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and expenses incurred in so doing between or among such entities, with the result that each such entity bears its fair share of all such costs and expenses;

  

	 	(Q)	to the extent that it contracts or does business with vendors or service providers where the goods or services are wholly or partially for the benefit of the EFH Group members,
allocate fairly, appropriately and reasonably the costs incurred in so doing to the entity for whose benefit the goods or services are provided, with the result that each such entity bears its fair share of all such costs; 

 

	 	(R)	to the extent that officers or other employees of the EFH Group members perform services for the Company, cause the Company to pay the fair, appropriate and reasonable costs and
expenses related to providing such services; 

  

	 	(S)	to the extent that it occupies any premises in the same location or shares the use of equipment with the EFH Group members, allocate fairly, appropriately and reasonably any rent
and overhead expenses among and between such entities with the result that each bears its fair share of all such rent and expenses; 

  

	 	(T)	cause its employees, representatives and agents (1) to hold themselves out to third parties as being its employees, representatives or agents, as the case may be, it being
understood that it need not have its own dedicated employees, (2) to refrain from holding themselves out as employees, representatives or agents of any EFH Group member, and (3) with respect to each employee of the Company, not
concurrently to be employee of a EFH Group member; 

  

	 	(U)	maintain separate annual financial statements from the EFH Group prepared in accordance with GAAP showing its assets and liabilities separate and distinct from those of any other
entities (other than its Subsidiaries); provided, that these financial statements may be prepared on a consolidated basis for all of the Ring-Fenced Entities, collectively; 

  

	 	(V)	to the extent its financial statements are to be consolidated with the financial statements of any other entities (other than its Subsidiaries), (1) cause to be included in
such consolidated financial statements (or in an accompanying statement) a footnote or other description of the separateness of it and its Subsidiaries’ assets, liabilities, business functions and operations to ensure that such separate assets,
liabilities, business functions and operations are readily distinguishable by any person receiving or relying upon a copy of such consolidated financial statements, and (2) make its separate annual financial statements available to the public
on its website or the website of Oncor Electric Delivery; 

  

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	 	(W)	pay or bear the cost of the preparation of its financial statements, and have such financial statements audited by an independent certified public accounting firm; provided, that
such audit must be conducted by a team of auditors from such certified public accounting firm that does not include any member of the team of auditors for the EFH Group members; 

  

	 	(X)	correct any known material misunderstanding regarding its identity as an entity separate from any EFH Group member; 

  

	 	(Y)	not make any loans to any EFH Group member or buy or hold any indebtedness or other securities or obligations issued by any EFH Group member (other than (1) trade accounts
receivable incurred in the ordinary course of business on an arm’s length commercially reasonable basis payable within 60 days, (2) obligations incurred under the Reimbursement Agreements, and (3) other obligations (other than
obligations for borrowed money) incurred on an arm’s length, commercially reasonable basis); 

  

	 	(Z)	not permit any of its assets to be held in the name of another Person, except in the name of a Person that is not a EFH Group member pursuant to a documented trust or similar
arrangement; 

  

	 	(AA)	maintain adequate capital and a sufficient number of employees or contractual relationships with parties other than the EFH Group members for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its contemplated business operations; and 

  

	 	(BB)	pay its fair share of taxes determined substantially as if the Company were a stand-alone corporation, without duplication for taxes paid by Oncor Electric Delivery.

 Failure of the Company, or the Member or Board on behalf of the Company, to comply with any of the foregoing covenants or
any other covenants contained in this Agreement shall not affect the status of the Company as a separate legal entity or the limited liability of the Member or the Directors. 
  

	 	(vi)	 To ensure separateness from the EFH Group members, the Company shall cause each Subsidiary of the Company whose organizational documents do not contain separateness
provisions comparable to the provisions of Section 10(i) (other than Transition Bond Co.) of this Agreement to take or refrain from taking, as the case may be, actions with respect to such Subsidiary of the type described in
Section 10(i)(v) hereof (except that the 

  

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Company shall not cause its Subsidiaries to refrain from taking the actions described in Section 10(i)(v)(J) and (Z) with respect to
the Commingled Funds), and shall cause each such Subsidiary to take actions with respect to itself of the type described in clauses (ii) and (iv) of the definition of Material Actions only if authorized by the Directors in a manner similar
to Section 10(i)(iii). 

  

	 	(vii)	The Member shall not take or permit any action that would cause the Ring-Fenced Entities to violate the Separateness Undertakings. 

 Section 11. Independent Directors. 
 The Nominating Committee shall appoint Directors as necessary to cause, at all times, (i) at least six (6) (or such greater number as shall constitute a majority of the Directors if the number of Directors is ever increased by
amendment to this Agreement) members of the Board to be Independent Directors, at least two (2) of which Independent Directors shall be Special Independent Directors. To the fullest extent permitted by applicable Law, including
Section 18-1101(c) of the Act, the Independent Directors shall consider only the interests of the Company, including its creditors, in acting or otherwise voting on any Material Action. No resignation or removal of an Independent Director, and
no appointment of a successor Independent Director, shall be effective until such successor (i) shall have accepted his or her appointment as an Independent Director by a written instrument reasonably acceptable to the Company, which may be a
counterpart signature page to the Management Agreement. In the event of a vacancy in the position of Independent Director, the Nominating Committee shall, as soon as practicable, designate a successor Independent Director. All right, power and
authority of the Independent Directors shall be limited to the extent necessary to exercise those rights and perform those duties specifically set forth in this Agreement. Except as provided in the second sentence of this Section 11, in
exercising their rights and performing their duties under this Agreement, any Independent Director shall have fiduciary duties of loyalty and care identical to those of a director of a business corporation organized under the General Corporation Law
of the State of Delaware. No Independent Director shall at any time serve as trustee in bankruptcy for any Affiliate of the Company. 
 Section 12. Officers. 
 (a) Officers. The Officers of the Company as of the date hereof are listed on Schedule E
hereto. The Officers of the Company shall consist of at least a Chief Executive Officer, a President, a Secretary and a Treasurer. The appointment or removal of the Chief Executive Officer or the Chief Financial Officer of the Company shall require
a majority vote of the Board, which shall in any event include the unanimous vote of the Member Directors (other than any such Member Director who is also an officer or employee of the Company). Additional Officers of the Company, if any, shall be
chosen by the Board. The Board may also choose one or more Vice Presidents, Assistant Secretaries and Assistant Treasurers. Any number of offices may be held by the same person, except that the President and the Secretary shall not be the same
person. The Board may appoint such other Officers and agents as it shall deem necessary or advisable who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the
Board. The salaries of all Officers and 

  

 12 

 
agents of the Company shall be fixed by or in the manner prescribed by the Board. The Officers of the Company shall hold office until their successors are
chosen and qualified. Any Officer, except as provided above with respect to the Chief Executive Officer and the Chief Financial Officer, may be removed at any time, with or without cause, by the affirmative vote of a majority of the Board. Any
vacancy occurring in any office of the Company, except as provided above with respect to the Chief Executive Officer and the Chief Financial Officer, shall be filled by the Board. The Officers shall have such powers and duties as usually pertain to
their offices, respectively, as well as such powers and duties as may from time to time be conferred by the Board. No Officer of the Company may concurrently be an officer of any EFH Group member. 
 (b) Officers as Agents. The Officers, to the extent of their powers set forth in this Agreement or otherwise vested in them by action of the Board
not inconsistent with this Agreement, are agents of the Company for the purpose of the Company’s business and, subject to Section 10(i), the actions of the Officers taken in accordance with such powers shall bind the Company.

 (c) Duties of Board and Officers. Except to the extent otherwise provided herein, each Director and Officer shall have fiduciary
duties of loyalty and care identical to those of directors and officers of business corporations organized under the General Corporation Law of the State of Delaware. 
 Section 13. Limited Liability. 
 Except as otherwise expressly provided by the Act, the debts,
obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be the debts, obligations and liabilities solely of the Company, and neither the Member nor the Special Members nor any Director (nor former Member or
Director) shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member, Special Member or Director of the Company. 
 Except as otherwise expressly provided herein or required by applicable Law, no Member shall have an obligation to return money or other property paid or
distributed to such Member whether or not such distribution was in violation of the Act, except to the extent arising from gross negligence, fraud, willful breach of this Agreement or a willful illegal act of such Member. The agreement set forth in
the immediately preceding sentence shall be deemed to be a compromise for purposes of §18-502(b) of the Act. However, if any court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Member is
obligated to make any such return, such obligation shall be the obligation of such Member and not of any other Person. 
 Section 14.
Capital Contributions. 
 The Member has contributed to the Company property of an agreed value as listed on Schedule B attached
hereto. In accordance with Section 6(c), the Special Members shall not be required to make any capital contributions to the Company. 
  

 13 

 Section 15. Additional Contributions. 
 The Member is not required to make any additional capital contribution to the Company. However, the Member may make additional capital contributions to
the Company at any time. To the extent that the Member makes an additional capital contribution to the Company, the Member shall revise Schedule B of this Agreement to reflect such additional Capital Contribution. The provisions of this
Agreement, including this Section 15, are intended to benefit the Member and the Special Members and, to the fullest extent permitted by Law, shall not be construed as conferring any benefit upon any creditor of the Company (and no such
creditor of the Company shall be a third-party beneficiary of this Agreement) and the Member and the Special Members shall not have any duty or obligation to any creditor of the Company to make any contribution to the Company or to issue any call
for capital pursuant to this Agreement. 
 Section 16. Tax Classification and Allocations of Profits and Losses. 
 The Board shall take such actions as are necessary to cause the Company to be treated as a disregarded entity separate from its owner for federal income
tax purposes pursuant to Treasury Regulations Section 301.7701-3 and neither the Board nor any Person shall take any action that would affect such status without the prior written consent of the Member. The profits and losses of the Company
shall be allocated to the Member. 
 Section 17. Distributions. 
 (a) Subject to subsections (b), (c) and (d) of this Section 17, distributions shall be made to the Member at such times and in such
aggregate amounts as may be determined by the Board from time to time. The Company shall cause each of the Proceeds Distributions (as defined in the Oncor Electric Delivery LLC Agreement) to be distributed to the Initial Member promptly on the date
that the Company receives the funds therefor from Oncor Electric Delivery. 
 (b) Subject to subsection (d) of this
Section 17, the Company shall make quarterly distributions to the Member equal to the dividends received from Oncor Electric Delivery and any other Subsidiary the Company has or may hereafter have. 
 (c) Subject to subsection (d) of this Section 17, the Company shall distribute all of the proceeds of any issuance of limited liability
company interests in the Company or in Oncor Electric Delivery, unless otherwise directed by the Member. 
 (d) Notwithstanding any other
provision contained in this Agreement, 
  

	 	(i)	the Company shall not make any distribution to the Member on account of its interest in the Company if such distribution would violate the Act or other applicable Law; and

  

	 	(ii)	other than in respect of the Proceeds Distributions, the Company shall not distribute any amounts to the Member to the extent that the Board determines that in good faith that it is
necessary to retain such amounts to meet expected future requirements of the Company. 

  

 14 

 Section 18. Books and Records. 
 The Board shall keep or cause to be kept complete and accurate books of account and records with respect to the Company’s business. The books of the
Company shall at all times be maintained by the Company. The Member and its duly authorized representatives shall have the right to examine the Company books, records and documents during normal business hours. The Company, and the Board on behalf
of the Company, shall have the right, pursuant to Section 18-305(c) of the Act, to keep confidential from the Member certain information as the Board deems necessary or appropriate. 
 Section 19. Reports. 
 (a) On
such date as may be agreed by the Initial Member and the Company, but in no event later than (i) five (5) days with respect to quarterly statements and (ii) ten (10) days with respect to annual statements prior to the date on
which the EFH Group (a) is required by Law or any contractual obligation or regulatory commitment to file consolidated financial statements with the SEC or deliver consolidated financial statements to any other Person (which filing or delivery
date shall be communicated to the Company at least 40 days in advance of the Company’s obligation to deliver the same) or (b) expects to file consolidated financial statements with the SEC or deliver consolidated financial statements to
any other Person in connection with an offering of securities (which filing or delivery date shall be communicated to the Company at least 40 days in advance of the Company’s obligation to deliver the same), the Board shall cause to be prepared
all annual audited or quarterly unaudited financial statements, as applicable, and disclosures and certifications required under this Agreement or necessary for such information to be filed or delivered, along with any other information reasonably
requested by the Member for inclusion in the EFH Group’s consolidated financial statements or SEC filings. 
 (b) As soon as reasonably
practicable after the end of each taxable year but not later than two hundred and seventy (270) days after the end of each taxable year, the Company shall send to each Member a copy of U.S. Internal Revenue Service Schedule K-1, and any
comparable statements required by applicable state or local income tax Law, with respect to such taxable year. The Board shall also, after the end of each fiscal year, use reasonable efforts to cause to be prepared and transmitted to the Member as
promptly as possible any other tax information as may be reasonably necessary to enable the Member to prepare its federal, state and local income tax returns relating to such fiscal year. 
 Section 20. Other Business. 
 To
the extent permitted by Law and subject to Section 10(i), the Member, the Special Members and any Affiliate of the Member or the Special Members may engage in or possess an interest in other business ventures (unconnected with the
Company) of every kind and description, independently or with others and the pursuit of any such investment or venture, even if competitive with the business of the Company and its Subsidiaries, shall not be deemed wrongful or improper. The Company
shall not have any rights in or to such independent ventures or the income or profits therefrom by virtue of this Agreement. 
  

 15 

 No Member, Special Member, Director or Affiliate of any of the foregoing shall be obligated to present
any particular investment or business opportunity to the Company even if such opportunity is of a character that, if presented to the Company, could be pursued by the Company, and any Member, Special Member, Director or Affiliate of any of the
foregoing shall have the right to pursue for its own account (individually or as a partner or a fiduciary) or to recommend to any other Person any such investment opportunity. 
 Section 21. Exculpation and Indemnification. 
 (a) To the fullest extent permitted by Law, no Covered Person shall be liable to the Company or any other Person that is a party to or is otherwise bound by this Agreement for any loss, damage or claim incurred by
reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement, except
that a Covered Person shall be liable for any such loss, damage or claim incurred by reason of such Covered Person’s fraud, gross negligence or willful misconduct. 
 (b) To the fullest extent permitted by applicable Law, an Indemnified Person shall be entitled to indemnification from the Company for any loss, damage or claim incurred by such Indemnified Person by reason of any act
or omission performed or omitted by such Indemnified Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Indemnified Person by this Agreement, except that no
Indemnified Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Indemnified Person by reason of such Indemnified Person’s fraud, gross negligence or willful misconduct with respect to such acts or
omissions; provided, however, that any indemnity under this Section 21 by the Company shall be provided out of and to the extent of Company assets only, and the Member shall not have personal liability on account thereof.

 (c) To the fullest extent permitted by applicable Law, expenses (including reasonable legal fees) incurred by an Indemnified Person
defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on
behalf of the Indemnified Person to repay such amount if it shall be determined that the Indemnified Person is not entitled to be indemnified as authorized in this Section 21. 
 (d) An Indemnified Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports
or statements presented to the Company by any Person as to matters the Indemnified Person reasonably believes are within such other Person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the
Company, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, or any other facts pertinent to the existence and amount of assets from which distributions to the Member might properly be paid.

 (e) To the extent that, at law or in equity, an Indemnified Person has duties (including fiduciary duties) and liabilities relating
thereto to the Company or to any other Indemnified Person, an Indemnified Person acting under this Agreement shall not be liable to the Company or to any other Indemnified Person for its good faith reliance on the provisions of this Agreement or

  

 16 

 
any approval or authorization granted by the Company or any other Indemnified Person. The provisions of this Agreement, to the extent that they restrict or
eliminate the duties and liabilities of an Indemnified Person otherwise existing at law or in equity, are agreed by the Member to replace such other duties and liabilities of such Indemnified Person. 
 (f) The foregoing provisions of this Section 21 shall survive any termination of this Agreement. 
 Section 22. Assignments. 
 (a)
The Member may assign in whole or in part its limited liability company interest in the Company. Subject to Section 24, the transferee shall be admitted to the Company as a Member of the Company upon its execution of a counterpart
signature page to this Agreement and a joinder agreement or other instrument reasonably acceptable to the Company signifying its agreement to be bound by the terms and conditions of this Agreement and assume the obligations of the Member hereunder
in respect of the transferred limited liability company interest. If the Member transfers all of its limited liability company interest in the Company pursuant to this Section 22, the admission of such transferee shall be deemed
effective immediately prior to the transfer and, immediately following such admission, the transferor Member shall cease to be a member of the Company. Notwithstanding anything in this Agreement to the contrary, any successor to the Member by merger
or consolidation in compliance with this Agreement shall, without further act, be the Member hereunder, and such merger or consolidation shall not constitute an assignment for purposes of this Agreement and the Company shall continue without
dissolution. 
 Section 23. Resignation. 
 So long as any Obligation is outstanding, the Member may not resign; provided, that nothing in this Section 23 shall limit the Member’s rights under Section 22 to assign its limited
liability company interest. 
 Section 24. Admission of Additional Members. 
 One or more additional Members of the Company may be admitted to the Company with the written consent of the Member. 
 Section 25. Dissolution. 
 (a)
The Company shall be dissolved, and its affairs shall be wound up upon the first to occur of the following: (i) the termination of the legal existence of the last remaining member of the Company or the occurrence of any other event which
terminates the continued membership of the last remaining member of the Company in the Company unless the Company is continued without dissolution in a manner permitted by this Agreement or the Act or (ii) the entry of a decree of judicial
dissolution of the Company under Section 18-802 of the Act. Upon the occurrence of any event that causes the last remaining member of the Company to cease to be a member of the Company or that causes the Member to cease to be a member of the
Company (other than upon the continuation of the Company without dissolution upon (i) an assignment by the Member of all of its limited liability company interest in the Company and the admission of 

  

 17 

 
the transferee pursuant to Sections 22 and 24, or (ii) the resignation of the Member and the admission of an additional member of the Company
pursuant to Sections 23 and 24), to the fullest extent permitted by Law, the personal representative of such member is hereby authorized to, and shall, within 90 days after the occurrence of the event that terminated the continued membership
of such member in the Company, agree in writing (i) to continue the Company and (ii) to the admission of the personal representative or its nominee or designee, as the case may be, as a substitute member of the Company, effective as of the
occurrence of the event that terminated the continued membership of the last remaining member of the Company or the Member in the Company. 
 (b) Notwithstanding any other provision of this Agreement, the Bankruptcy of the Member or a Special Member shall not cause the Member or Special Member, respectively, to cease to be a member of the Company and upon the occurrence of such
an event, the Company shall continue without dissolution. 
 (c) Notwithstanding any other provision of this Agreement, each of the Member
and the Special Members waives any right it might have to agree in writing to dissolve the Company upon the Bankruptcy of the Member or a Special Member, or the occurrence of an event that causes the Member or a Special Member to cease to be a
member of the Company. 
 (d) In the event of dissolution, the Company shall conduct only such activities as are necessary to wind up its
affairs (including the sale of the assets of the Company in an orderly manner), and the assets of the Company shall be applied in the manner, and in the order of priority, set forth in Section 18-804 of the Act. 
 (e) The Company shall terminate when (i) all of the assets of the Company, after payment of or due provision for all debts, liabilities and
obligations of the Company, shall have been distributed to the Member in the manner provided for in this Agreement and (ii) the Certificate of Formation shall have been canceled in the manner required by the Act. 
 Section 26. Waiver of Partition; Nature of Interest. 
 Except as otherwise expressly provided in this Agreement, to the fullest extent permitted by Law, each of the Member and the Special Members hereby irrevocably waives any right or power that such Person might have to
cause the Company or any of its assets to be partitioned, to cause the appointment of a receiver for all or any portion of the assets of the Company, to compel any sale of all or any portion of the assets of the Company pursuant to any applicable
Law or to file a complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation, winding up or termination of the Company. The Member shall not have any ownership interest in any specific assets of the Company,
and the Member shall not have the status of a creditor with respect to any distribution pursuant to Section 17 hereof. The interest of the Member in the Company is personal property. 
 Section 27. Benefits of Agreement; No Third-Party Rights. 
 The provisions of this Section shall apply notwithstanding any provision of this Agreement to the contrary. None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditor of the
Company or by any creditor of the Member or a Special 

  

 18 

 
Member. Nothing in this Agreement shall be deemed to create any right in any Person (other than Covered Persons and Indemnified Persons) not a party hereto,
and this Agreement shall not be construed in any respect to be a contract in whole or in part for the benefit of any third Person (except as provided in Section 20, Section 21 and Section 30). 
 Section 28. Severability of Provisions. 
 Each provision of this Agreement shall be considered severable and if for any reason any provision or provisions herein are determined to be invalid, unenforceable or illegal under any existing or future Law, such invalidity,
unenforceability or illegality shall not impair the operation of or affect those portions of this Agreement which are valid, enforceable and legal. 
 Section 29. Entire Agreement. 
 This Agreement constitutes the entire agreement of the parties with respect to the
subject matter hereof. 
 Section 30. Binding Agreement. 
 Notwithstanding any other provision of this Agreement, the Member agrees that this Agreement constitutes a legal, valid and binding agreement of the
Member, and is enforceable against the Member by the Independent Directors, in accordance with its terms. In addition, the Independent Directors shall be intended beneficiaries of this Agreement. 
 Section 31. Governing Law. 
 This
Agreement shall be governed by and construed under the Laws of the State of Delaware (without regard to conflict of laws principles), all rights and remedies being governed by said Laws. 
 Section 32. Amendments. 
 Subject
to Section l0(i), this Agreement may be modified, altered, supplemented or amended only pursuant to a written agreement executed and delivered by the Member. 
 Section 33. Counterparts. 
 This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original of this Agreement and all of which together shall constitute one and the same instrument. 
 Section 34. Notices. 
 (a) Except as expressly set forth to the contrary in this Agreement, all notices, requests or
consents provided for or required to be given hereunder shall be in writing and shall be deemed to be duly given if personally delivered; telecopied and confirmed; mailed by certified mail, return receipt requested; or sent via nationally recognized
overnight delivery service with proof of receipt maintained (i) in the case of the Company, to the Company at its 

  

 19 

 
address in Section 2, (ii) in the case of the Member, to the Member at its address as listed on Schedule B attached hereto and
(iii) in the case of either of the foregoing, at such other address as may be designated by written notice to the other party. 
 (b)
Any such notice shall, if delivered personally, be deemed received upon delivery; shall, if delivered by telecopy, be deemed received on the first business day following confirmation; shall, if delivered by nationally recognized overnight delivery
service, be deemed received the first business day after being sent; and shall, if delivered by mail, be deemed received upon the earlier of actual receipt thereof or five business days after the date of deposit in the United States mail.

 (c) Whenever any notice is required to be given by Law or this Agreement, a written waiver thereof, signed by the Person entitled to
notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. 
 [SIGNATURE PAGE FOLLOWS]

  

 20 

 IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, has duly executed this Second
Amended and Restated Limited Liability Company Agreement as of the 5th day of November, 2008. 
  

			
	 ENERGY FUTURE INTERMEDIATE
 HOLDING
COMPANY LLC

		
	By:	 	 /s/ JOHN F. YOUNG

	Name:	 	John F. Young
	Title:	 	President and Chief Executive
	
	SPECIAL MEMBERS:
		
		 	 /s/ WILLIAM T. HILL, JR.

	Name:	 	William T. Hill, Jr.
		
		 	 /s/ RICHARD W. WORTHAM III

	Name:	 	Richard W. Wortham III

 Signature Page to Second Amended and Restated Oncor Holdings LLC Agreement 

 SCHEDULE A 
 Definitions 
  

	A.	Definitions 

 When used in this Agreement, the
following terms not otherwise defined herein have the following meanings: 
 “Act” has the meaning set forth in the preamble
to this Agreement. 
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly Controlling or
Controlled by or under direct or indirect common Control with such Person; provided, however, that for purposes of Section 10(i)(v) of this Agreement, “Affiliate” shall not include any other Ring-Fenced Entity.

 “Agreement” means this Second Amended and Restated Limited Liability Company Agreement of the Company, together with the
schedules attached hereto, as amended, restated or supplemented or otherwise modified from time to time. 
 “Bankruptcy”
means, with respect to any Person, if such Person (i) makes an assignment for the benefit of creditors, (ii) files a voluntary petition in bankruptcy, (iii) is adjudged a bankrupt or insolvent, or has entered against it an order for
relief, in any bankruptcy or insolvency proceedings, (iv) files a petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation or similar relief under any statute, Law or regulation,
(v) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against it in any proceeding of this nature, (vi) seeks, consents to or acquiesces in the appointment of a trustee, receiver
or liquidator of the Person or of all or any substantial part of its properties, or (vii) if 120 days after the commencement of any proceeding against the Person seeking reorganization, arrangement, composition, readjustment, liquidation or
similar relief under any statute, law or regulation, the proceeding has not been dismissed, or if within 90 days after the appointment without such Person’s consent or acquiescence of a trustee, receiver or liquidator of such Person or of all
or any substantial part of its properties, the appointment is not vacated or stayed, or within 90 days after the expiration of any such stay, the appointment is not vacated. The foregoing definition of “Bankruptcy” is intended to replace
and shall supersede and replace the definition of “Bankruptcy” set forth in Sections 18-101(1) and 18-304 of the Act. 
 “Board” or “Board of Directors” means the Board of Directors of the Company. 
 “Certificate of Formation” means the Certificate of Formation of the Company filed with the Secretary of State of the State of Delaware on October 5, 2007, as amended or amended and restated from time to time.

 “Commingled Funds” means (1) the assets or funds deposited by Oncor Electric Delivery in connection with the Plans,
(2) the Transition Charges owned by Oncor Electric Delivery Transition Bond Company LLC, or (3) revenues received by Oncor Electric Delivery under Rider NDC (Nuclear Decommissioning Charge) of Oncor Electric Delivery’s Tariff for
Retail Delivery Service. 
  

 A-1 

 “Company” has the meaning set forth in the preamble to this Agreement. 
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities or general partnership or managing member interests, by contract or otherwise. “Controlling” and “Controlled” shall have correlative meanings. Without limiting the
generality of the foregoing, a Person shall be deemed to Control any other Person in which it owns, directly or indirectly, a majority of the ownership interests. 
 “Covered Persons” means, collectively, each Officer, Director, and employee of the Company, each Special Member, the Member and each officer, director and employee of the Member, and of each Affiliate
of the Member and of each direct or indirect shareholder of any such Affiliate or of such shareholder’s Affiliates. 
 “Director” means each of the Persons designated to the Board of Directors from time to time by the Member or the Nominating Committee, including the Independent Directors and Special Independent Directors, in his or her
capacity as manager of the Company. A Director is hereby designated as a “manager” of the Company within the meaning of Section 18-101(10) of the Act. 
 “EFH Group” means Energy Future Holdings Corp., a Texas corporation, its successors, and its Subsidiaries, and any individual or entity controlling or owning, directly or indirectly, more than 49% of
the beneficial interests in the Company, other than the Ring-Fenced Entities. 
 “Fitch” means Fitch, Inc. 
 “Fund Advisors” means, collectively, Kohlberg Kravis Roberts & Co. L.P., TPG Capital, L.P., and Goldman Sachs & Co.

 “GAAP” has the meaning set forth in Section 10(i)(i)(D). 
 “Governmental Authority” means any: (i) nation, state, commonwealth, province, territory, county, municipality, district or other
jurisdiction of any nature; (ii) U.S. and other federal, state, local, municipal, foreign or other government; or (iii) governmental or quasi-governmental authority of any nature (including any governmental division, department, agency,
commission, instrumentality, official, organization, unit, body or entity and any court or other tribunal). 
 “Indemnified
Persons” means, collectively, (1) each Officer and Director of the Company, (2) the Special Members, the Member and each officer, director, employee, equityholder and agent of the Member, and (3) any employee of the Company
with whom the Company enters into a written agreement approved by a majority of the Board of Directors that includes an indemnification obligation referencing Section 21 of this Agreement. 
  

 A-2 

 “Independent Director” means any Director of the Company (i) whom the Board has
affirmatively determined to have no material relationship with the Company or any Non-Ring-Fenced Entity (either directly or as a partner, shareholder or officer of an organization that has a material relationship with the Company, Oncor Electric
Delivery, or any Non-Ring-Fenced Entity) and (ii) who otherwise would be considered “independent” in all material respects of the Company and each of the Non-Ring-Fenced Entities in accordance with the criteria set forth in
Section 303A of the New York Stock Exchange Manual; provided, that, (1) a Person’s capacity as a director of Energy Future Holdings Corp. or as a shareholder of Energy Future Holdings Corp. prior to the date the common
stock of Energy Future Holdings Corp. was acquired by Texas Energy Future Holdings Limited Partnership shall not preclude such Person from being an Independent Director, if such individual otherwise satisfies the criteria set forth above;
(2) the indirect or beneficial ownership of stock through a mutual fund or similar diversified investment vehicle with respect to which the owner does not have discretion or control over the investments held by such diversified investment
vehicle (other than any such investment vehicle which is an Affiliate of any of the Fund Advisors) shall not preclude such owner from being an Independent Director; (3) the direct or indirect legal or beneficial ownership of interests in a
Non-Ring-Fenced Entity shall not preclude such owner from being an Independent Director if such ownership is of a de minimis magnitude that the other Independent Directors determine would not reasonably be expected to influence the judgment of the
proposed Independent Director in determining the interests of the Company or Oncor Electric Delivery and (4) with respect to a ratepayer, supplier, creditor or independent contractor of, or a Person who received any benefit from or provided any
services to, the Company, Oncor Electric Delivery, or any Non-Ring-Fenced Entity, such relationship shall not preclude such Person or any Affiliate of such Person from being an Independent Director if the other Independent Directors determine that
such relationship is of a nature or magnitude as would not reasonably be expected to influence the judgment of the proposed Independent Director in determining the interests of the Company or Oncor Electric Delivery. Notwithstanding anything to the
contrary in this definition of “Independent Director”, a Director who also serves as an Independent Director of another Ring-Fenced Entity and who otherwise satisfies the criteria set forth above for an “Independent Director”,
may still be considered independent within the meaning hereof. 
 “Initial Member” means Energy Future Intermediate Holding
Company LLC, a Delaware limited liability company, and its successors and assigns. 
 “Law” means all applicable federal,
state, local or foreign laws, statutes and ordinances, common laws and rules, regulations, standards, judgments, orders, writs, injunctions, decrees, arbitration awards, agency requirements, licenses or permits of any Governmental Authority.

 “Management Agreement” means the agreement of the Directors in the form attached hereto as Schedule C. The
Management Agreement shall be deemed incorporated into, and a part of, this Agreement. 
 “Material Action” means
(i) to consolidate or merge the Company with or into any Person with the result that the Company is not the surviving entity; (ii) to consolidate or merge the Company with or into any EFH Group member; (iii) to sell, transfer or
dispose of all or substantially all of the assets of the Company (including by way of merger) without adequate provision for the payment of all creditors of the Company and Oncor Electric Delivery; (iv) to 

  

 A-3 

 
institute proceedings to have the Company be adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency proceedings against
the Company or file a petition seeking, or consent to, reorganization or relief with respect to the Company under any applicable federal or state Law relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Company or a substantial part of its property, or make any assignment for the benefit of creditors of the Company, or admit in writing the Company’s inability to pay its debts generally as they
become due, or take action in furtherance of any such action; or (v) to the fullest extent permitted by Law, to dissolve or liquidate the Company without adequate provision for the payment of all creditors of the Company and Oncor Electric
Delivery. 
 “Member” means Energy Future Intermediate Holding Company LLC, as the Initial Member of the Company, and
includes any Person admitted as an additional member of the Company or a substitute member of the Company pursuant to the provisions of this Agreement, each in its capacity as a member of the Company; provided, however, the term “Member”
shall not include the Special Members. 
 “Member Directors” has the meaning set forth in Section 10(a)(iii).

 “Moody’s” means Moody’s Investor Services, Inc. 
 “Non-Ring-Fenced Entity” means each EFH Group member; each Fund Advisor; Citibank, N.A.; Lehman Brothers Holdings Inc.; Morgan
Stanley & Co. Incorporated; Credit Suisse; J.P. Morgan Chase Bank, N.A.; Texas Energy Future Capital Holdings LLC and Texas Energy Future Holdings Limited Partnership. 
 “NRSRO” means each of S&P, Moody’s, Fitch and any other nationally recognized statistical rating organization. 
 “Obligations” mean all debt obligations (whether secured or unsecured) of any Ring-Fenced Entity rated by a NRSRO, whether now or
hereafter outstanding. 
 “Officer” means an officer of the Company described in Section 12. 
 “Oncor Electric Delivery” has the meaning set forth in Section 8. 
 “Oncor Electric Delivery LLC Agreement” means the Second Amended and Restated Limited Liability Company Agreement of Oncor Electric
Delivery, as the same may be amended and restated, supplemented or otherwise modified from time to time. 
 “Person” means
any individual, corporation, partnership, joint venture, limited liability company, limited liability partnership, association, joint stock company, trust, unincorporated organization, or other organization, whether or not a legal entity, and any
governmental authority. 
 “Plans” means those certain defined benefit pension plans maintained or contributed to by Energy
Future Holdings Corp. and certain of its Affiliates (including Oncor Electric Delivery) for the benefit of their employees (including executives, employee directors, fog inter employees 

  

 A-4 

 
and retirees), collectively with the other postretirement employee benefit plans maintained or contributed to by Energy Future Holdings Corp. and certain of
its Affiliates (including Oncor Electric Delivery). 
 “Principal Member” means the Company for so long as the Company
(together with its Permitted Transferees (as defined in the Oncor Electric Delivery LLC Agreement)) holds not less than 10% of the then aggregate outstanding LLC Units (as defined in the Oncor Electric Delivery LLC Agreement); and upon any failure
to so hold 10% of the then aggregate outstanding LLC Units, the Company shall cease to be a “Principal Member.” 
 “PUCT” means the Public Utility Commission of Texas. 
 “Reimbursement Agreements” means
(1) the Reimbursement Agreement, dated January 1, 2004, between Oncor Electric Delivery (as successor-in-interest to Oncor Electric Delivery Company) and Luminant Generation Company LLC (“Luminant Genco”) (formerly TXU
Generation Company LP), providing for the reimbursement of certain interest expenses relating to the securitization of certain generation-related regulatory assets held by the Company, together with (2) the Reimbursement Agreement, dated
January 1, 2002, between Oncor Electric Delivery (as successor-in-interest to Oncor Electric Delivery Company) and Luminant Genco, providing for payment by Luminant Genco to the Company of certain federal income taxes associated with certain
generation-related regulatory assets held by Oncor Electric Delivery. 
 “Ring-Fenced Entities” means the Company, Oncor
Electric Delivery and each of their Subsidiaries. 
 “S&P” means Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc. 
 “SEC” means the United States Securities and Exchange Commission. 

“Special Independent Director” means any Director who, in addition to meeting the requirements applicable to Independent Directors,
has not been at the time of his or her appointment or at any time in the preceding five years, and during the continuation of his or her service as a Director is not, (i) a direct or indirect legal or beneficial owner in the Company, Oncor
Electric Delivery, or any Non-Ring-Fenced Entity, (ii) a creditor; supplier; employee; officer; director; family member of any employee, officer or director; manager or contractor of the Company, Oncor Electric Delivery, or any Non-Ring-Fenced
Entity, or (iii) a person who controls (whether directly, indirectly or otherwise) the Company, Oncor Electric Delivery or any Non-Ring-Fenced Entity or any creditor, supplier, employee, officer, director, manager, or contractor of the Company,
Oncor Electric Delivery, or any Non-Ring-Fenced Entity; provided, that (I) the indirect or beneficial ownership of stock through a mutual fund or similar diversified investment vehicle with respect to which the owner does not have
discretion or control over the investments held by such diversified investment vehicle (other than any such investment vehicle which is an Affiliate of any of the Fund Advisors) shall not preclude such owner from being a Special Independent
Director; and (2) the direct or indirect legal or beneficial ownership of interests in a Non-Ring-Fenced Entity shall not preclude such owner from being a Special Independent Director if such ownership is of a “de minimis magnitude”,
which, for purposes of 

  

 A-5 

 
this definition, shall mean a fair value that does not exceed one percent of the net worth of such Special Independent Director. Notwithstanding anything to
the contrary in this definition of “Special Independent Director”, a Director who also serves as an Independent Director of another Ring-Fenced Entity and who otherwise satisfies the criteria set forth above for a “Special Independent
Director”, may still be considered independent within the meaning hereof. 
 “Special Member” means, upon such
person’s admission to the Company as a member of the Company pursuant to Section 6(c), each person designated as a Special Member on the signature pages of the Agreement or on the signature pages of a counterpart to the Agreement,
in such person’s capacity as a member of the Company. A Special Member shall only have the rights and duties expressly set forth in this Agreement. 
 “Subsidiary” or “Subsidiaries” of an entity means each other entity that (a) is Controlled by such entity, or (b) a majority of the ownership interests of which are
beneficially owned by such entity. 
 “Tax Sharing Agreement” means the Amended and Restated Tax Sharing Agreement, dated as
of the date hereof, by and among the Company, Oncor Electric Delivery, Energy Future Holdings Corp., the Management Member (as defined in the Oncor Electric Delivery LLC Agreement) and the Minority Member (as defined in the Oncor Electric Delivery
LLC Agreement), as the same may be amended, supplemented or otherwise modified from time to time. 
 “Transition Bond Co.”
means Oncor Electric Delivery Transition Bond Company LLC, a Delaware limited liability company. 
 “Transition Charges”
means those charges collected from retail electric customers to pay the principal and interest on, and the associated costs to issue and service, bonds issued by Transition Bond Co. 
  

	B.	Rules of Construction 

 Definitions in this
Agreement apply equally to both the singular and plural forms of the defined terms. The words “include” and “including” shall be deemed to be followed by the phrase “without limitation.” The terms “herein,”
“hereof’ and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section, paragraph or subdivision. The Section titles appear as a matter of convenience only and shall not
affect the interpretation of this Agreement. All Section, paragraph, clause, Exhibit or Schedule references not attributed to a particular document shall be references to such parts of this Agreement. References to any entity shall also be deemed to
be references to its successor entities. 
  

 A-6 

 SCHEDULE B 
 Member 
  

									
	 Name
	  	 Mailing Address
	  	Agreed Value of
Capital Contribution	  	Limited Liability
Company Interest	 
	 Energy Future
 Intermediate Holding
 Company LLC
	  	 Energy Plaza
 1601 Bryan Street
 Dallas, Texas 75201-3411
	  	$	100,000	  	100	%

  

 B-1 

 SCHEDULE C 
 Management Agreement 
                          , 2008 
  

			
	[	 	  

	  

			
	  
	 	]

 Re: Management Agreement—Oncor Electric Delivery Holdings Company LLC 
 Ladies and Gentlemen: 
 For good and valuable consideration,
each of the undersigned Persons, who have been designated as Directors of Oncor Electric Delivery Holdings Company LLC, a Delaware limited liability company (the “Company”), in accordance with the Second Amended and Restated Limited
Liability Company Agreement of the Company, dated as of November 5, 2008, as it may be amended or restated from time to time (the “LLC Agreement”), hereby agree as follows: 
 1. Each of the undersigned accepts such Person’s rights and authority as a Director under the LLC Agreement and agrees to perform and discharge such
Person’s duties and obligations as a Director under the LLC Agreement, and further agrees that such rights, authorities, duties and obligations under the LLC Agreement shall continue until such Person’s successor as a Director is
designated or until such Person’s resignation or removal as a Director in accordance with the LLC Agreement. Each of the undersigned agrees and acknowledges that it has been designated as a “manager” of the Company within the meaning
of the Delaware Limited Liability Company Act. 
 2. So long as any Obligation is outstanding, each of the undersigned agrees, solely in its
capacity as a creditor of the Company on account of any indemnification or other payment owing to the undersigned by the Company, not to acquiesce, petition or otherwise invoke or cause the Company to invoke the process of any court or governmental
authority for the purpose of commencing or sustaining an involuntary case against the Company under any federal or state bankruptcy, insolvency or similar Law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Company or any substantial part of the property of the Company, or ordering the winding up or liquidation of the affairs of the Company. 
 3. THIS MANAGEMENT AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED BY SUCH LAWS WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAWS. 
 Initially capitalized terms used and not otherwise defined herein have the meanings set forth in the LLC Agreement.

  

 C-1 

 This Management Agreement may be executed in any number of counterparts, each of which shall be deemed an
original of this Management Agreement and all of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the
undersigned have executed this Management Agreement as of the day and year first above written. 
  

	
	  

	
	  
	
	  

	
	  

	
	  

  

 C-2 

 SCHEDULE D 
 DIRECTORS 
  

	1.	Nora Brownwell 

  

	2.	William T. Hill, Jr. 

  

	3.	Marc S. Lipschultz 

  

	4.	Robert S. Shapard 

  

	5.	Richard W. Wortham III 

  

	6.	Jeffrey Liaw 

  

	7.	Robert Estrada 

  

	8.	Tom Dunning 

  

	9.	Monte E. Ford 

  

 D-1 

 SCHEDULE E 
  

			
	 Officers
	  	 Title

	Robert S. Shapard	  	Chairman of the Board and Chief Executive
	R.D. Trimble	  	President and Chief Operating Officer
	Brenda L. Jackson	  	Senior Vice President
	Brenda J. Pulis	  	Senior Vice President
	Charles W. Jenkins III	  	Senior Vice President
	James A. Greer	  	Senior Vice President
	David M. Davis	  	Vice President, Chief Financial Officer and Secretary
	Don J. Clevenger	  	Vice President, External Affairs and Secretary
	Deborah L. Dennis	  	Vice President
	Michael E. Guyton	  	Vice President
	John W. Self	  	Vice President
	Debra L. Elmer	  	Vice President
	Diane Kubin	  	Assistant Secretary
	Richard C. Hays	  	Controller
	John M. Casey	  	Treasurer

  

 E-1 

 SCHEDULE F 
 MEMBERS OF THE NOMINATING COMMITTEE: 
  

	1.	William T. Hill, Jr. 

  

	2.	Mark S. Lipschultz 

  

	3.	Richard W. Wortham III 

  

 F-1Form of Amended and Restated Change in Control Severance Agreement (executives)

 Exhibit 10(a) 
 PARKER-HANNIFIN CORPORATION 
 AMENDED AND RESTATED 
 CHANGE IN CONTROL SEVERANCE AGREEMENT 
 THIS CHANGE IN CONTROL SEVERANCE AGREEMENT
(“Agreement”) is amended and restated as of the              day of
                    , 2008, by and between Parker-Hannifin Corporation (the “Company”) and
                                        
     (the “Executive”). 
 W I T N E S S E T H 
 WHEREAS, the Company considers the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best
interests of the Company and its stockholders; and 
 WHEREAS, the Company recognizes that, as is the case with many publicly held
corporations, the possibility of a Change in Control (as defined in Section 1) may arise and that such possibility may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders;
and 
 WHEREAS, the Board (as defined in Section 1) has determined that it is in the best interests of the Company and its
stockholders to secure the Executive’s continued services and to ensure the Executive’s continued and undivided dedication to his duties in the event of any threat or occurrence of a Change in Control (as defined in Section 1);
and 
 WHEREAS, the Board has authorized the Company to enter into this Agreement; and 
 WHEREAS, the Company and the Executive entered into this Agreement, originally effective as of the
             day of                     ,
                    ; and 
 WHEREAS, the Company and the Executive desire to amend and restate this Agreement to reflect the requirements of the American Jobs Creation Act (the “Act”) with respect to nonqualified deferred compensation subject to
Section 409A of the Code. 
 NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements herein
contained, the Company and the Executive hereby agree as follows: 
 1. Definitions. As used in this Agreement, the following terms shall have the
respective meanings set forth below: 
  

	 	(a)	 “Affiliated Group” means the Company and all entities with which the Company would be considered a single employer under Sections 414(b) and 414(c) of the
Code, provided that in applying Section 1563(a)(1), (2), and (3) of the Code, for purposes of determining a controlled group of corporations under Section 414(b) of the Code, the language “at least 50 percent” is used
instead of “at least 80 percent” each place it appears in Section 1563(a)(1), (2), and (3) of the Code, and in applying Section 1.414(c)-2 

	 	 
of the Treasury Regulations for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of
Section 414(c) of the Code, “at least 50 percent” is used instead of “at least 80 percent” each place it appears in that regulation. Such term shall be interpreted in a manner consistent with the definition of “service
recipient” contained in Section 409A of the Code. 

  

	 	(b)	“Board” means the Board of Directors of the Company. 

  

	 	(c)	“Bonus” means the annual bonuses payable pursuant to the RONA Plan and the Target Incentive Program, except to the extent determined by the Company to be extraordinary.

  

	 	(d)	“Cause” means: 

  

	 	(i)	a material breach by the Executive of the duties and responsibilities of the Executive (other than as a result of incapacity due to physical or mental illness) which is demonstrably
willful and deliberate on the Executive’s part, which is committed in bad faith or without reasonable belief that such breach is in the best interests of the Company and which is not remedied in a reasonable period of time after receipt of
written notice from the Company specifying such breach; or 

  

	 	 (ii)
	 the commission by the Executive of a felony involving moral turpitude. The determination of Cause shall be made by the
Board. Cause shall not exist unless and until the Company has delivered to the Executive a copy of a resolution duly adopted by three-quarters ( 3/4) of the Board at a meeting of the Board called and held for such purpose (after reasonable notice to the Executive and an opportunity for the Executive, together with the Executive’s counsel, to be heard before the Board), finding
that in the good faith opinion of the Board the Executive was guilty of the conduct set forth in this Section 1(d) and specifying the particulars thereof in detail. The Company must notify the Executive that it believes Cause has occurred
within ninety (90) days of its knowledge of the event or condition constituting Cause or such event shall not constitute Cause under this Agreement. For purposes of clause (i) above, any act, or failure to act, by the Executive based upon
authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the
Company. 

  

	 	(e)	“Change in Control” means the occurrence of one of the following events: 

  

	 	(i)	 any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”) and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined voting

  

 2 

	 	 
power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”);
provided, however, that the event described in this paragraph shall not be deemed to be a Change in Control by virtue of any of the following situations: (A) an acquisition by the Company or any Subsidiary; (B) an acquisition
by any employee benefit plan sponsored or maintained by the Company or any Subsidiary; (C) an acquisition by any underwriter temporarily holding securities pursuant to an offering of such securities; (D) a Non-Control Transaction (as
defined in paragraph (iii)); (E) any acquisition by the Executive or any group of persons (within the meaning of Sections 13(d)(3) and 14(d)(2) of the Exchange Act) including the Executive (or any entity in which the Executive or a group of
persons including the Executive, directly or indirectly, holds a majority of the voting power of such entity’s outstanding voting interests); or (F) the acquisition of Company Voting Securities from the Company, if a majority of the Board
approves a resolution providing expressly that the acquisition pursuant to this clause (F) does not constitute a Change in Control under this paragraph (i); 

  

	 	(ii)	individuals who, at the beginning of any period of twenty-four (24) consecutive months, constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority thereof; provided, that any person becoming a director subsequent to the beginning of such twenty-four (24) month period, whose election, or nomination for election, by the Company’s
shareholders was approved by a vote of at least two-thirds of the directors comprising the Incumbent Board who are then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a
nominee for director, without objection to such nomination) shall be, for purposes of this paragraph (ii), considered as though such person were a member of the Incumbent Board; provided, however, that no individual initially elected
or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board
shall be deemed to be a member of the Incumbent Board; 

  

	 	(iii)	 the consummation of a merger, consolidation, share exchange or similar form of corporate reorganization of the Company or any Subsidiary that requires the approval
of the Company’s stockholders, whether for such transaction or the issuance of securities in connection with the transaction or otherwise (a “Business Combination”), unless (A) immediately following such Business Combination:
(1) more than 50% of the total voting power of the corporation resulting from such Business Combination (the “Surviving Corporation”) or, if applicable, the ultimate parent corporation which directly or indirectly has beneficial
ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Company Voting Securities that were outstanding immediately 

  

 3 

	 	 
prior to the Business Combination (or, if applicable, shares into which such Company Voting Securities were converted pursuant to such Business Combination),
and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (2) no person (other than any
employee benefit plan sponsored or maintained by the Surviving Corporation or Parent Corporation) is or becomes the beneficial owner, directly or indirectly, of 20% or more of the total voting power of the outstanding voting securities eligible to
elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation), and (3) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation,
the Surviving Corporation), following the Business Combination, were members of the Incumbent Board at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination (a “Non-Control
Transaction”) or (B) the Business Combination is effected by means of the acquisition of Company Voting Securities from the Company, and a majority of the Board approves a resolution providing expressly that such Business Combination does
not constitute a Change in Control under this paragraph (iii); or 

  

	 	(iv)	the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or the sale or other disposition of all or substantially all of the assets of
the Company and its Subsidiaries. 

 Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely
because any person acquires beneficial ownership of more than 20% of the Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which, by reducing the number of Company Voting Securities outstanding,
increases the percentage of shares beneficially owned by such person; provided, that if a Change in Control would occur as a result of such an acquisition by the Company (if not for the operation of this sentence), and after the
Company’s acquisition such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control shall then
occur. 
 Notwithstanding anything in this Agreement to the contrary, if the Executive’s employment is terminated prior to a Change in
Control, and the Executive reasonably demonstrates that such termination was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change in Control (a “Third Party”) (such a
termination of employment an “Anticipatory Termination”), then for all purposes of this Agreement except with respect to benefits under Sections 2(a)(i)(B) and 2(d)(ii) that constitute nonqualified deferred compensation subject to
Section 409A of the Code, the date immediately prior to the date of such Anticipatory Termination shall be deemed to be the date of a Change in Control. 
  

 4 

	 	(f)	“Code” means the Internal Revenue Code of 1986, as amended, or any successor statute, and regulations or other guidance issued thereunder.

  

	 	(g)	“Company” means Parker-Hannifin Corporation, an Ohio corporation. 

  

	 	(h)	“Corporate Change 409A Event” means the occurrence of one of the following events: 

  

	 	(i)	A change in ownership of the Company, which occurs on the date that any one person or more than one person acting as a group (within the meaning of the Regulations under
Section 409A of the Code) acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50% of the total voting power of the stock of the Company. Notwithstanding the foregoing, if any
one person or group is considered to own more than 50% of the total voting power of the stock of the Company, the acquisition of additional stock by the same person or group is not considered to cause a change in the ownership of the Company or a
change in the effective control of the Company (within the meaning of Section 1(h)(ii) of this Agreement). Notwithstanding the foregoing, a Corporate Change 409A Event shall not be deemed to occur solely because any person acquires
ownership of more than 50% of the total voting power of the stock of the Company as a result of the acquisition by the Company of stock of the Company which, by reducing the number of shares outstanding, increases the percentage of shares
beneficially owned by such person; provided, that if a Corporate Change 409A Event would occur as a result of such an acquisition by the Company (if not for the operation of this sentence), and after the Company’s acquisition such person
becomes the beneficial owner of additional stock of the Company that increases the percentage of outstanding shares of stock of the Company owned by such person, a Corporate Change 409A Event shall then occur. 

  

	 	(ii)	A change in effective control of the Company, which occurs on either of the following dates: 

  

	 	(A)	 The date that any one person or more than one person acting as a group (within the meaning of the Regulations under Section 409A of the Code) acquires (or has
acquired during the 12-month period ending on the date of the most recent acquisition by such person or group) ownership of stock of the Company possessing 30% or more of the total voting power of the Company. Notwithstanding the foregoing, if any
one person or group is considered to own 30% or more of total voting power of the stock of the Company, the acquisition of additional stock by the same person or group is not considered to cause a change in the effective control of the Company or a
change in ownership of the Company (within the meaning of Section 1(h)(i) of this Agreement). Notwithstanding the foregoing, a Corporate Change 409A Event shall not be deemed to occur solely because any person acquires ownership of more
than 30% of the total voting power of the stock of the Company as a result of the acquisition by 

  

 5 

	 	 
the Company of stock of the Company which, by reducing the number of shares outstanding, increases the percentage of shares beneficially owned by such
person; provided, that if a Corporate Change 409A Event would occur as a result of such an acquisition by the Company (if not for the operation of this sentence), and after the Company’s acquisition such person becomes the beneficial owner of
additional stock of the Company that increases the percentage of outstanding shares of stock of the Company owned by such person, a Corporate Change 409A Event shall then occur. 

  

	 	(B)	The date that a majority of the Company’s Board is replaced during any 12-month period by directors whose appointment or election was not endorsed by a majority of the members
of the Board prior to the date of such appointment or election. 

  

	 	(iii)	a change in the ownership of a substantial portion of the Company’s assets, which occurs on the date that any one person or more than one person acting as a group (within the
meaning of the regulations under Section 409A of the Code) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or group) assets that have a total gross fair market value equal to
or more than 65% of the total gross fair market value of all the assets of the Company immediately before such acquisition or acquisitions. The gross fair market value of assets shall be determined without regard to liabilities associated with such
assets. Notwithstanding the foregoing, a transfer of assets shall not result in a change in ownership of a substantial portion of the Company’s assets if such transfer is to (a) a shareholder of the Company (immediately before the asset
transfer) in exchange for or with respect to its stock, (b) an entity 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (c) a person or group (within the meaning of the regulations
under Section 409A of the Code) that owns, directly or indirectly, 50% or more of the total value or voting power of the stock of the Company, or (d) an entity, at least 50% of the total value or voting power of which is owned, directly or
indirectly by a person or group described in Section 1(h)(iii)(c) of this Agreement. 

 Notwithstanding Sections
1(h)(i), 1(h)(ii)(a) and 1(h)(iii) above, the consummation of a Business Combination shall not be deemed a Corporate Change 409A Event if, immediately following such Business Combination: (a) more than 50% of the total voting power of the
Surviving Corporation resulting from such Business Combination or, if applicable, the Parent Corporation of such Surviving Corporation, is represented by Company Voting Securities that were outstanding immediately prior to the Business Combination
(or, if applicable, shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company
Voting Securities among the holders thereof immediately prior to the Business Combination, (b) no person (other than any employee benefit plan sponsored or 

  

 6 

 
maintained by the Surviving Corporation or the Parent Corporation) is or becomes the beneficial owner, directly or indirectly, of 20% or more of the total
voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation), and (c) at least a majority of the members of the board of directors of
the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation), following the Business Combination, were members of the Company’s Board at the time of the Board’s approval of the execution of the initial
agreement providing for such Business Combination. 
 Notwithstanding the foregoing, an acquisition of stock of the Company described in
Section 1(h)(i) or 1(h)(ii)(a) above shall not be deemed to be a Corporate Change 409A Event by virtue of any of the following situations: (a) an acquisition by the Company or any Subsidiary; (b) an acquisition by any employee
benefit plan sponsored or maintained by the Company or any Subsidiary; (c) an acquisition by any underwriter temporarily holding securities pursuant to an offering of such securities; or (d) the acquisition of stock of the Company from the
Company. 
  

	 	(i)	“Date of Termination” means the date of the Executive’s separation from service with the Company, within the meaning of Section 1.409A-1(h) of the Regulations;
provided, that in applying Section 1.409A-1(h)(ii) of the Regulations, a separation from service shall be deemed to occur if the Company and the Executive reasonably anticipate that the level of bona fide services the Executive will perform for
the Affiliated Group after a certain date (whether as an employee or as an independent contractor) will permanently decrease to less than 50% of the average level of bona fide services performed by the Executive for the Affiliated Group (whether as
an employee or as an independent contractor) over the immediately preceding 36-month period (or the full period of services performed for the Affiliated Group if the Executive has been providing services to the Affiliated Group for less than 36
months). In the event of a disposition of assets by the Company to an unrelated person, the Company reserves the discretion to specify (in accordance with Section 1.409A-1(h)(4) of the Regulations) whether the Executive, if the Executive would
otherwise experience a separation from service with the Company as part of the disposition of assets, will be considered to experience a separation of service for purposes of Section 1.409A-1(h) of the Regulations. 

  

	 	(j)	“Disability” means the condition whereby the Executive is (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (ii) by reason of any medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under any accident and health plan covering employees of the Company. The
Company, in its complete and sole discretion, shall determine the Executive’s Disability. The Company may require that the Executive submit to an examination on an annual basis, at the expense of the Company, by a competent physician or medical
clinic selected by the Company to confirm Disability. On the basis of such medical evidence, the determination of the Company as to whether or not a condition of Disability exists or continues shall be conclusive. 

  

 7 

	 	(k)	“Good Reason” means, without the Executive’s express written consent, the occurrence of any of the following events after a Change in Control:

  

	 	(i)	the assignment to the Executive of any duties (including a diminution of duties) inconsistent in any adverse respect with the Executive’s position(s), duties, responsibilities
or status with the Company immediately prior to such Change in Control; 

  

	 	(ii)	an adverse change in the Executive’s reporting responsibilities, titles or offices with the Company as in effect immediately prior to such Change in Control;

  

	 	(iii)	any removal or involuntary termination of the Executive from the Company otherwise than as expressly permitted by this Agreement or any failure to re-elect the Executive to any
position with the Company held by the Executive immediately prior to such Change in Control; 

  

	 	(iv)	a reduction by the Company in the Executive’s rate of annual base salary as in effect immediately prior to such Change in Control or as the same may be increased from time to
time thereafter; 

  

	 	(v)	any requirement of the Company that the Executive (A) be based anywhere more than twenty-five (25) miles from the facility where the Executive is located at the time of
the Change in Control or (B) travel on Company business to an extent substantially more burdensome than the travel obligations of the Executive immediately prior to such Change in Control; 

  

	 	(vi)	 the failure of the Company to (A) continue in effect any employee benefit plan or compensation plan in which the Executive is participating immediately prior
to such Change in Control, or the taking of any action by the Company which would adversely affect the Executive’s participation in or reduce the Executive’s benefits under any such plan (including the failure to provide the Executive with
a level of discretionary incentive award grants consistent with the past practice of the Company in granting such awards to the Executive during the three-Year period immediately preceding the Change in Control), (B) provide the Executive and
the Executive’s dependents with welfare benefits (including, without limitation, medical, prescription, dental, disability, salary continuance, employee life, group life, accidental death and dismemberment and travel accident insurance plans
and programs) in accordance with the most favorable plans, practices, programs and policies of the Company and the Affiliated Group in effect for the Executive immediately prior to such Change in Control, (C) provide fringe benefits in
accordance with the most favorable plans, practices, programs and policies of the Company and the Affiliated Group in effect for the Executive immediately 

  

 8 

	 	 
prior to such Change in Control, or (D) provide the Executive with paid vacation in accordance with the most favorable plans, policies, programs and
practices of the Company and the Affiliated Group as in effect for the Executive immediately prior to such Change in Control, unless in the case of any violation of (A), (B) or (C) above, the Executive is permitted to participate in other
plans, programs or arrangements which provide the Executive (and, if applicable, the Executive’s dependents) with no less favorable benefits at no greater cost to the Executive; or (vii) the failure of the Company to obtain the assumption
agreement from any successor as contemplated in Section 9(b). 

 For purposes of this Agreement, any good faith
determination of Good Reason made by the Executive shall be conclusive; provided, however, that an isolated, insubstantial and inadvertent action taken in good faith and which is remedied by the Company promptly after receipt of notice
thereof given by an Executive shall not constitute Good Reason. The Executive’s right to terminate employment for Good Reason shall not be affected by the Executive’s incapacitation due to mental or physical illness and the
Executive’s continued employment shall not constitute consent to or a waiver of rights with respect to any event or condition constituting Good Reason. The Executive must provide notice of termination within ninety (90) days of his
knowledge of an event or condition constituting Good Reason hereunder or such event shall not constitute Good Reason hereunder. A transaction which results in the Company no longer being a publicly traded entity shall not in and of itself be treated
as Good Reason unless and until one of the events or conditions set forth in Sections 1(k)(i) through (vii) occurs. 
 Any event
or condition described in Sections 1(k)(i) through (vi) which occurs prior to a Change in Control, but was at the request of a Third Party, shall constitute Good Reason following a Change in Control for purposes of this Agreement (as if
a Change in Control had occurred immediately prior to the occurrence of such event or condition) notwithstanding that it occurred prior to the Change in Control. Notwithstanding anything in this Section 1(k) to the contrary, if during the
180-day period commencing upon the 91st day immediately following a Change in Control, the Executive’s employment terminates for any or no reason (other than for Cause) such termination shall be treated as a termination for Good Reason
hereunder. 
  

	 	(l)	“Nonqualifying Termination” means the Executive’s separation from service (within the meaning of Section 1.409A-1(h) of the Regulations and
Section 1(i) of this Agreement) (i) by the Company for Cause, (ii) by the Executive for any reason other than Good Reason, (iii) as a result of the Executive’s death, or (iv) as a result of the Executive’s
Retirement. 

  

	 	(m)	“Projected Bonus Amount” means, with respect to any Year, the greater of (i) the Executive’s Target Bonus Amount for such Year; or (ii) to the extent
calculable after at least one calendar quarter of the Year, the Bonus the Executive would have earned in the Year in which the Executive’s Date of Termination occurs had the Company’s financial performance through the end of the fiscal
quarter immediately preceding the Date of Termination continued throughout said Year (the “Earned Bonus Amount”). 

  

 9 

	 	(n)	“Regulations” means regulations issued under Section 409A of the Code. Reference to any section of the Regulations shall be read to include any amendment or revision
of such Regulation. 

  

	 	(o)	“Retirement” means the Executive’s mandatory retirement (not including any mandatory early retirement) in accordance with the Company’s retirement policy
generally applicable to its salaried employees, as in effect immediately prior to the Change in Control, or in accordance with any retirement arrangement established with respect to the Executive with the Executive’s written consent.

  

	 	(p)	“RONA Plan” means the Company’s Return on Net Assets Plan, or any successor thereto. 

  

	 	(q)	“Specified Employee” means a person designated from time to time as such by the Company pursuant to Section 409A(a)(2)(B)(i) of the Code and the Company’s policy
for determining specified employees. 

  

	 	(r)	“Subsidiary” means any corporation or other entity in which the Company has a direct or indirect ownership interest of 50% or more of the total combined voting power of
the then outstanding securities of such corporation or other entity. 

  

	 	(s)	“Target Bonus Amount” means, with respect to any Year, the Executive’s target Bonus for such Year. 

  

	 	(t)	“Target Incentive Program” means the Company’s Target Incentive Program, or any successor thereto. 

  

	 	(u)	“Termination Period” means the period of time beginning with a Change in Control and ending three (3) years following such Change in Control.

  

	 	(v)	“Year” means the fiscal year of the Company. 

 2. Payments
Upon Termination of Employment. 
  

	 	(a)	If during the Termination Period the employment of the Executive shall terminate, other than by reason of a Nonqualifying Termination, then, subject to Sections 2(g) and
2(h), the Company shall pay to the Executive (or the Executive’s Beneficiary (as defined in Section 9(c)) or estate), within five (5) days following the Date of Termination, as compensation for services rendered to the
Company: 

  

	 	(i)	 A lump-sum cash amount equal to the sum of: (A) the Executive’s base salary from the Company and its Subsidiaries through the Date of Termination and any
outstanding Bonus or long-term bonus awards for which payment is due and owing at such time, (B) any compensation previously deferred by the Executive other than pursuant to a tax-qualified plan (together with any 

  

 10 

	 	 
interest and earnings thereon) (the “Deferred Amount”), plus an additional adjustment payment calculated in accordance with the formula set forth
in Exhibit A hereto, (C) any accrued vacation pay, and (D) to the extent not provided under the Company’s Bonus plans, a pro-rata portion of the Executive’s Projected Bonus Amount for the Year in which the Executive’s Date
of Termination occurs, in each case to the extent not theretofore paid. Notwithstanding the foregoing, in the event of an Anticipatory Termination, in lieu of the payment referred to in Section 2(a)(i)(D), the Company shall pay to the
Executive (or the Executive’s Beneficiary (as defined in Section 9(c) or estate), within two and one-half (2 1/2) months after the end of the Year in which the Executive’s Date of Termination occurs, a pro-rata portion of the
Bonus earned based on Company performance as certified by the Compensation and Human Resources Committee of the Board after the end of such Year; provided, however, that if a Change in Control occurs after such Anticipatory Termination and
prior to such payment, payment of a pro-rata portion of the Executive’s Projected Bonus Amount shall be paid, in accordance with Section 2(a)(i)(D), within five (5) days after such Change in Control.

  

	 	(ii)	A lump-sum cash amount equal to the product of: (A) the lesser of (1) three (3) and (2) the quotient resulting from dividing the number of full and partial
months from the Executive’s Date of Termination until the Executive would be subject to Retirement, by twelve (12) and (B) the sum of (1) the Executive’s highest annual rate of base salary during the 12-month period
immediately preceding the Date of Termination and (2) the highest of (x) the Executive’s average Bonus (annualized for any partial Years of employment) earned during the 3-Year period immediately preceding the Year in which the Date
of Termination occurs (or shorter annualized period if the Executive had not been employed for the full three-Year period), (y) the Executive’s Target Bonus Amount for the Year in which the Change in Control occurs and (z) the
Executive’s Target Bonus Amount for the Year in which the Date of Termination occurs; provided, that any amount paid pursuant to this Section 2(a)(ii) shall offset an equal amount of any severance relating to salary or bonus
continuation to be received by the Executive upon termination of employment of the Executive under any severance plan, policy, or arrangement of the Company. 

  

	 	(b)	 If during the Termination Period, the employment of the Executive shall terminate, other than by reason of a Nonqualifying Termination, for a period of three
(3) years (or, if lesser, the period ending on the date on which the Executive would be subject to Retirement) commencing on the Date of Termination, the Company shall continue to keep in full force and effect (or otherwise provide) all
policies of medical, accident, disability and life insurance with respect to the Executive and his dependents with the same level of coverage, upon the same terms and otherwise to the same extent (and on the same after-tax basis, with any payment
required to keep the Executive in the same after-tax position made no later than the end of the calendar year in which the 

  

 11 

	 	 
Executive remits the related taxes), as such policies shall have been in effect immediately prior to the Date of Termination (or, if more favorable to the
Executive, immediately prior to the Change in Control), and the Company and the Executive shall share the costs of the continuation of such insurance coverage in the same proportion as such costs were shared immediately prior to the Date of
Termination. 

  

	 	(c)	If during the Termination Period the employment of the Executive shall terminate, other than by reason of a Nonqualifying Termination, then the Executive shall be credited with
three (3) years additional age and service credit for purposes of qualifying for any retiree medical benefits programs of the Company, although receipt of such retiree medical benefits shall not commence until the Executive is otherwise
eligible under the terms of the retiree medical plan. If the Executive is terminated pursuant to a Nonqualifying Termination and would have been eligible to retire under the terms and conditions of the Company’s retiree medical program as of
immediately prior to the Executive’s Date of Termination (or, if more favorable to the Executive, as of immediately prior to the Change in Control), the Executive’s termination of employment shall be treated as a retirement under the
Company’s retiree medical program. The retiree medical benefits (and cost) to be provided to the Executive (and the Executive’s eligible dependents) by the Company shall be no less favorable than the benefits (and cost) under the retiree
medical program of the Company as of immediately prior to the Executive’s Date of Termination (or, if more favorable to the Executive, as of immediately prior to the Change in Control), and shall be provided notwithstanding any amendment to, or
termination of, the Company’s retiree medical program. 

  

	 	(d)	If during the Termination Period the employment of the Executive shall terminate by reason of a Nonqualifying Termination or the Executive shall suffer a Disability, then, subject
to Sections 2(g) and 2(h), the Company shall pay to the Executive within thirty (30) days following the Date of Termination or Disability, a cash amount equal to the sum of (i) the Executive’s base salary from the Company and
its Subsidiaries through the Date of Termination or Disability and any outstanding Bonus or long-term bonus awards for which payment is due and owing at such time, (ii) any compensation previously deferred by the Executive other than pursuant
to a tax-qualified plan (together with any interest and earnings thereon), (iii) any accrued vacation pay, and (iv) in the event of a Nonqualifying Termination other than for Cause or the Executive’s Disability, to the extent not
provided under the Company’s Bonus plans, a pro-rata portion of the Executive’s Earned Bonus Amount for the Year in which the Executive’s Date of Termination or Disability occurs, in each case to the extent not theretofore paid.

  

	 	(e)	 If subsequent to a Change in Control and the end of the Termination Period, the employment of the Executive shall be terminated by the Company (other than by reason
of a Nonqualifying Termination), then, subject to Section 2(h), the Company shall pay the Executive within five (5) days following his Date of Termination a lump sum cash payment equal to the sum of (i) the Executive’s
highest annual rate of base salary during the 12-month period immediately preceding the Date of Termination and (ii) the higher of (A) the Executive’s average Bonus (annualized for any partial Years of 

  

 12 

	 	 
employment) earned during the 3-Year period immediately preceding the Year in which the Date of Termination occurs and (B) the Executive’s Target
Bonus Amount for the Year in which the Date of Termination occurs; provided, that any amount paid pursuant to clauses (i) and (ii) of this Section 2(e) shall offset an equal amount of any severance relating to
salary or bonus continuation to be received by the Executive upon termination of employment of the Executive under any severance plan, policy or arrangement of the Company. 

  

	 	(f)	If subsequent to a Change in Control and the end of the Termination Period, the employment of the Executive shall be terminated by the Company, the Company shall pay the Executive
within five (5) days following his Date of Termination a lump sum cash payment equal to: (i) the Executive’s base salary from the Company and its Subsidiaries through the Date of Termination and any outstanding Bonus or long-term
bonus awards for which payment is due and owing at such time, (ii) any accrued vacation pay, and (iii) if the termination is other than for Cause, to the extent not provided under the Company’s Bonus plans, a pro-rata portion of the
Executive’s Earned Bonus Amount for the Year in which the Executive’s Date of Termination occurs, in each case to the extent not theretofore paid. 

  

	 	(g)	Notwithstanding any of the foregoing provisions of this Section 2, (i) the amounts described in Section 2(a)(i)(B), including the additional adjustment
payment calculated in accordance with the formula set forth in Exhibit A, and Section 2(d)(ii) of this Agreement shall be paid as a lump sum only if (A) the Date of Termination occurs within two years following a Corporate Change 409A
Event, or (B) to the extent that payment in a lump sum is otherwise permitted by Section 409A of the Code. 

  

	 	(h)	Notwithstanding any of the foregoing provisions of this Section 2, in the event that the Executive is a Specified Employee upon the Date of Termination, to the extent
required in order to comply with Section 409A of the Code, amounts and benefits to be paid or provided under this Agreement following the Date of Termination and not on account of the Executive’s Disability shall be paid or provided to the
Executive on the first day of the seventh month following the Date of Termination. 

 3. Gross-Up Payment. 
  

	 	(a)	 Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment, distribution or acceleration of vesting of any
award or benefit by the Company or its Subsidiaries to or for the benefit of the Executive (whether paid or payable, distributed or distributable or accelerated or subject to acceleration pursuant to the terms of this Agreement or otherwise) (a
“Payment”) would be subject to the excise tax imposed by Section 4999 of the Code, or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all
taxes (including any interest or penalties imposed with respect to such 

  

 13 

	 	 
taxes) imposed upon the Gross-Up Payment, the Executive retains an amount equal to the sum of (i) the Excise Tax imposed upon the Payments and
(ii) the product of any deductions disallowed because of the inclusion of the Gross-Up Payment in the Executive’s adjusted gross income for federal income tax purposes and the highest applicable marginal rate of federal income taxation for
the calendar year in which the Gross-Up Payment is to be made. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to (1) pay applicable federal income taxes at the highest applicable marginal rates of
federal income taxation for the calendar year in which the Gross-Up Payment is to be made, (2) pay applicable state and local income taxes at the highest applicable marginal rate of taxation for the calendar year in which the Gross-Up Payment
is to be made, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes and (3) have otherwise allowable deductions for federal income tax purposes at least equal to those which
could be disallowed because of the inclusion of the Gross-Up Payment in the Executive’s adjusted gross income. The payment of a Gross-Up Payment under this Section 3(a) shall in no event be conditioned upon the Executive’s termination
of employment or the receipt of severance benefits under this Agreement. 

  

	 	(b)	 Subject to the provisions of Section 3(a), all determinations required to be made under this Section 3, including whether and when a
Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by Towers Perrin, or such other professional consulting firm as may be engaged by the Human
Resources and Compensation Committee of the Board of Directors for time to time (the “Consulting Firm”) which shall provide detailed supporting calculations both to the Company and the Executive within fifteen (15) business days of
the receipt of notice from the Company or the Executive that there has been a Payment, or such earlier time as is requested by the Company (collectively, the “Determination”). In the event that the Consulting Firm (or any affiliate
thereof) is serving as a consultant for the individual, entity or group effecting the Change in Control, the Executive may appoint a nationally recognized public accounting firm to make the determinations required hereunder (which accounting firm
shall then be referred to as the Consulting Firm hereunder). All fees and expenses of the Consulting Firm shall be borne solely by the Company and the Company shall enter into any agreement requested by the Consulting Firm in connection with the
performance of the services hereunder. The Gross-Up Payment under this Section 3 with respect to any Payments shall be made no later than thirty (30) days following the date of such Payment. If the Consulting Firm determines that no
Excise Tax is payable by the Executive, it shall furnish the Executive with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on the Executive’s applicable federal income tax return will not
result in the imposition of a negligence or similar penalty. The Determination by the Consulting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time
of the Determination, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”) or Gross-Up Payments are made by the Company which should not have been made
(“Overpayment”), consistent with the calculations required 

  

 14 

	 	 
to be made hereunder. In the event that the Executive thereafter is required to make payment of any additional Excise Tax, the Consulting Firm shall
determine the amount of the Underpayment that has occurred and any such Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the benefit of the
Executive, and in any event by December 31 of the calendar year next following the calendar year in which the Excise Tax is remitted. In the event the amount of the Gross-Up Payment exceeds the amount necessary to reimburse the Executive for
his Excise Tax, the Consulting Firm shall determine the amount of the Overpayment that has been made and any such Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by the
Executive to or for the benefit of the Company. The Executive shall cooperate, to the extent his expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any contests or disputes with the Internal
Revenue Service in connection with the Excise Tax. 

  

	 	(c)	Notwithstanding Section 6 hereof, this Section 3 shall survive the termination of this Agreement unless the Executive’s employment was terminated by the
Company for Cause. 

 4. Withholding Taxes. The Company may withhold from all payments due to the Executive (or his beneficiary or
estate) hereunder all taxes which, by applicable federal, state, local or other law, the Company is required to withhold therefrom. 
 5. Reimbursement of
Expenses. If any contest or dispute shall arise under this Agreement involving termination of the Executive’s employment with the Company or involving the failure or refusal of the Company to perform fully in accordance with the terms
hereof, the Company shall reimburse the Executive, on a current basis, for all legal fees and expenses, if any, incurred by the Executive within 10 years after the Date of Termination in connection with such contest or dispute (regardless of the
result thereof), together with interest in an amount equal to the prime rate of Key Bank from time to time in effect, but in no event higher than the maximum legal rate permissible under applicable law, such interest to accrue from the date the
Company receives the Executive’s statement for such fees and expenses through the date of payment thereof. The Company’s reimbursement of the Executive’s legal fees and expenses pursuant to this Section 5 shall be made on or
before the last day of the calendar year following the calendar year in which such legal fees and expenses are incurred. The amount of legal fees and expenses eligible for reimbursement during any calendar year shall not affect the amount of legal
fees and expenses eligible for reimbursement during any other calendar year, and the right to reimbursement shall not be subject to liquidation or exchange for another benefit. 
 6. Termination of Agreement. This Agreement shall be effective on the date hereof and shall continue until the first to occur of (i) the termination of the Executive’s employment with the Company
prior to a Change in Control (except as otherwise provided hereunder), (ii) a Nonqualifying Termination, (iii) the Executive’s Disability, or (iv) the Executive’s termination of employment following the Termination Period.

  

 15 

 7. Scope of Agreement. Nothing in this Agreement shall be deemed to entitle the Executive to continued employment
with the Company or its Subsidiaries, and if the Executive’s employment with the Company shall terminate prior to a Change in Control, the Executive shall have no further rights under this Agreement (except as otherwise provided hereunder);
provided, however, that notwithstanding anything herein to the contrary, any termination of the Executive’s employment following a Change in Control shall be subject to all of the benefit and payment provisions of this Agreement.

 8. Obligations of the Executive. The Executive agrees that if a Change in Control shall occur, the Executive shall not voluntarily leave the employ
of the Company without Good Reason during the 90-day period immediately following a Change in Control. 
 9. Successors’ Binding Obligation.

  

	 	(a)	This Agreement shall not be terminated by any Business Combination or transfer of assets. In the event of any Business Combination or transfer of assets, the provisions of this
Agreement shall be binding upon the surviving or resulting corporation or any person or entity to which the assets of the Company are transferred. 

  

	 	(b)	The Company agrees that concurrently with any Business Combination or transfer of assets, it will cause any successor or transferee unconditionally to assume by written instrument
delivered to the Executive (or his beneficiary or estate) all of the obligations of the Company hereunder. Failure of the Company to obtain such assumption prior to the effectiveness of any such Business Combination or transfer of assets that
results in a Change in Control shall constitute Good Reason hereunder and shall entitle the Executive to compensation and other benefits from the Company in the same amount and on the same terms as the Executive would be entitled hereunder if the
Executive’s employment were terminated following a Change in Control other than by reason of a Nonqualifying Termination. For purposes of implementing the foregoing, the date on which any such Business Combination or transfer of assets becomes
effective shall be deemed the date Good Reason occurs, and the Executive may terminate employment for Good Reason on or following such date. 

  

	 	(c)	This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive shall die while any amounts would be payable to the Executive hereunder had the Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to such person or persons appointed in writing by the Executive to receive such amounts (the “Beneficiary” or “Beneficiaries”) or, if no person is so appointed, to the Executive’s estate.

  

 16 

 10. Notice. 
  

	 	(a)	For purposes of this Agreement, all notices and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered
or five (5) days after deposit in the United States mail, certified and return receipt requested, postage prepaid, addressed as follows: 

 If to the Executive: 
 If to the Company: 
 Parker-Hannifin Corporation 
 6035 Parkland
Boulevard 
 Cleveland, Ohio 44124-4141 
 Attention: Secretary 
 or to such other address as either party may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt. Alternatively, notice may be deemed to have been delivered when sent by facsimile or telex to a location provided by the other party hereto. 
  

	 	(b)	A written notice of the Executive’s Date of Termination by the Company or the Executive, as the case may be, to the other, shall (i) indicate the specific termination
provision in this Agreement relied upon, (ii) to the extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and
(iii) specify the Date of Termination (which date shall not be less than fifteen (15) nor more than sixty (60) days after the giving of such notice). The failure by the Executive or the Company to set forth in such notice any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company hereunder or preclude the Executive or the Company from asserting such fact or circumstance in enforcing the
Executive’s or the Company’s rights hereunder. 

 11. Full Settlement; No Mitigation. The Company’s obligation to make
any payments provided for by this Agreement to the Executive and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others. In no event shall the Executive be obligated to seek other employment or take other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts
shall not be reduced whether or not the Executive obtains other employment. 
 12. Employment with Members of Affiliated Group. Employment with the
Company for purposes of this Agreement shall include employment with any member of the Affiliated Group. 
 13. Governing Law; Validity. The
interpretation, construction and performance of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Ohio without regard to the principle of conflicts of laws. The invalidity or
unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which other provisions shall remain in full force and effect. 
  

 17 

 14. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original
and all of which together shall constitute one and the same instrument. 
 15. Miscellaneous. No provision of this Agreement may be modified or waived
unless such modification or waiver is agreed to in writing and signed by the Executive and by a duly authorized officer of the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. Failure by the Executive or the Company to insist
upon strict compliance with any provision of this Agreement or to assert any right the Executive or the Company may have hereunder, including without limitation, the right of the Executive to terminate employment for Good Reason, shall not be deemed
to be a waiver of such provision or right or any other provision or right of this Agreement. Except as otherwise specifically provided herein, the rights of, and benefits payable to, the Executive, his estate or his beneficiaries pursuant to this
Agreement are in addition to any rights of, or benefits payable to, the Executive, his estate or his beneficiaries under any other employee benefit plan or compensation program of the Company. 
 16. Compliance with Section 409A of the Code. This Agreement will be administered in a manner consistent with all applicable requirements of the Act,
Section 409A of the Code and the Regulations or other guidance thereunder and any provision in the Agreement that is inconsistent with Section 409A of the Code shall be void and without effect. 
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized officer of the Company and the Executive has executed this
Agreement as of the day and year first above written. 
  

			
	PARKER-HANNIFIN CORPORATION:
		
	By:	 	 
		 	Thomas A. Piraino, Jr., Vice President, General Counsel and Secretary

  

	
	 EXECUTIVE:

	
	 
	
	 Printed: _________________________________

  

 18 

 EXHIBIT A 
 The purpose of the adjustment payment to be added to the Deferred Amount pursuant to Section 2(a)(i)(B) (the “Make Whole Amount”) is to offset the Executive’s inability to defer until the
Executive’s Normal Retirement Date (as defined in the Company’s Amended and Restated Executive Deferral Plan) or later the payment of taxes on both the Deferred Amount and the earnings and interest that would have otherwise accrued between
the Date of Termination and the Executive’s Normal Retirement Date or such later date on which the Executive elected to commence receipt of the Deferred Amount (the “Commencement Date”) under the Company’s Amended and Restated
Executive Deferral Plan (the “Plan”). 
 The Make Whole Amount shall be calculated as follows: 
 1. The Executive’s Deferred Amount under the Plan as of the Date of Termination (the “EDP Amount”) will be projected forward to the
Commencement Date at an assumed tax-deferred annual earnings rate equal to the Moody’s Seasoned Baa Corporate Bond Yield Average for the last twelve full calendar months prior to the Date of Termination (the “Moody’s Rate”) (such
projected amount shall be known as the “Projected Balance”). The Projected Balance will then be converted into annual installment benefit payments based upon the Executive’s elected form of retirement payments under the Plan, assuming
continued tax-deferred earnings on the undistributed balance at the Moody’s Rate (the “Projected Annual Payouts”). The Projected Annual Payouts will then be reduced for assumed income taxes at the highest applicable federal, state and
local marginal rates of taxation in effect in the Executive’s taxing jurisdiction(s) for the calendar year in which the Make Whole Amount is paid (the “Tax Rate”). The after-tax Projected Annual Payouts will be known as the
“After-Tax Projected Benefits”. 
 2. The term “Made Whole Amount”, as used herein, shall mean the EDP Amount plus the
Make Whole Amount. The Make Whole Amount is the amount which, when added to the EDP Amount, will yield After-Tax Annuity Benefits (as hereinafter defined) equal to the After-Tax Projected Benefits, based on the following assumptions: 
 a. The Made Whole Amount will be taxed at the Tax Rate upon receipt by the Executive. 
 b. The after-tax Made Whole Amount will be deemed to be invested by the Executive in a tax-deferred annuity that is structured to make
payments beginning on the Commencement Date in the same form as elected by the Executive under the Plan (the “Annuity”). 
 c. The Annuity will accrue interest at the Moody’s Rate, less 80 basis points (i.e., 0.80%). 
 d. Annual
Annuity payments will be taxed at the Tax Rate (after taking into account the annuity exclusion ratio), yielding “After-Tax Annuity Benefits”. 
  

 19

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