Document:

<PAGE>
                                                                    EXHIBIT 4.12

                                     E.ON AG
                            as Issuer and Guarantor

                                    - and -

                        E.ON INTERNATIONAL FINANCE B.V.
                                   as Issuer

                                    - and -

                                  E.ON UK PLC
                                   as Issuer

                                    - and -

                                 CITIBANK, N.A.
                                as Fiscal Agent

                                    - and -

                               THE PAYING AGENTS

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

                  AMENDED AND RESTATED FISCAL AGENCY AGREEMENT

                                 relating to the
                               EURO 20,000,000,000
                           MEDIUM TERM NOTE PROGRAMME

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

                                HENGELER MUELLER
                                Frankfurt am Main

                                 21 August 2002

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                                    Amended and Restated Fiscal Agency Agreement

                                     - 2 -

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
Clause .......................................................................................................Page
<S>                                                                                                           <C>
 1.    Amendment and Restatement................................................................................5
 2.    Definitions and Interpretation...........................................................................5
 3.    Appointment of Fiscal Agent and Paying Agents............................................................7
 4.    The Notes................................................................................................8
 5.    Issuance of Notes........................................................................................9
 6.    Payments................................................................................................13
 7.    Miscellaneous Duties of the Fiscal Agent and
       the Paying Agents.......................................................................................15
 8.    Replacement Notes ......................................................................................18
 9.    Appointment and Duties of the Calculation Agent.........................................................20
10.    Early Redemption of Notes...............................................................................20
11.    Fees and Expenses.......................................................................................21
12.    Terms of Appointment....................................................................................22
13.    Changes in Agents.......................................................................................23
14.    Merger and Consolidation................................................................................25
15.    Notification of Changes to Agents.......................................................................25
16.    Communication between the Parties.......................................................................26
17.    Currency Indemnity......................................................................................26
18.    Notices and Communications..............................................................................26
19.    Governing Law, Place of Jurisdiction and Process Agent..................................................28
20.    Severability and Partial Invalidity.....................................................................28
21.    Amendment...............................................................................................29
22.    Counterparts............................................................................................29

SIGNATURES.....................................................................................................30

SCHEDULE 1
        Part I
        German language form of Global Note....................................................................32
        Part II
        English language form of Global Note...................................................................45

SCHEDULE 2
        Part I
        German language form of Collective Note................................................................52
        Part II
        English language form of Collective Note...............................................................55

SCHEDULE 3
        Part I
        German language form of Definitive Note................................................................58
        English language form of Definitive Note...............................................................60
        Part II
        German language form of Coupon.........................................................................62
</TABLE>

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                                    Amended and Restated Fiscal Agency Agreement

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<TABLE>
<S>                                                                                                            <C>
         English language form of Coupon.......................................................................65
         Part III
         German language form of Receipt.......................................................................68
         English language form of Receipt......................................................................69

SCHEDULE 4
         Calculation Agent Appointment Letter .................................................................70

SCHEDULE 5
         The Specified Offices of the Fiscal Agent and the Paying Agents.......................................73
</TABLE>

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                                    Amended and Restated Fiscal Agency Agreement

                                     - 4 -

THIS AMENDED AND RESTATED FISCAL AGENCY AGREEMENT is made on 21 August 2002

BETWEEN

(1)      E.ON AG ("E.ON AG" or, in the case of issues of Notes by E.ON
         International Finance B.V. or E.ON UK plc, the "GUARANTOR");

(2)      E.ON INTERNATIONAL FINANCE B.V. ("E.ON FINANCE");

(3)      E.ON UK PLC ("E.ON UK");

(4)      CITIBANK, N.A. (the "FISCAL AGENT", which expression shall include any
         successor fiscal agent appointed in accordance with Clause 13); and

(5)      BANQUE DE LUXEMBOURG S.A.; and
         CITIBANK AG
         (together with the Fiscal Agent the "PAYING AGENTS", which expression
         shall include any additional or successor paying agent appointed in
         accordance with Clause 13 and "PAYING AGENT" shall mean any of the
         Paying Agents).

PREAMBLE

(A) E.ON AG and E.ON Finance have established a programme (the "PROGRAMME") for
the issuance of Notes (as defined herein) in connection with which they entered
into a dealer agreement dated 14 November 2000 which was amended and restated on
16 November 2001 and further amended and restated by an Amended and Restated
Dealer Agreement of even date herewith (as further amended, supplemented or
replaced, the "DEALER AGREEMENT") with the financial institutions named therein
(the "DEALERS", which expression shall include any new dealers appointed, and
exclude any institution whose appointment as a dealer has been terminated, in
accordance with the Dealer Agreement).

(B) Notes may be issued on a listed or unlisted basis. E.ON AG, E.ON Finance and
E.ON UK have caused an application to be made to the Luxembourg Stock Exchange
and the Frankfurt Stock Exchange for Notes issued under the Programme to be
listed on the Luxembourg Stock Exchange or the Frankfurt Stock Exchange. In
connection with such application they have procured the preparation of the
Information Memorandum (as defined herein). Notes may be listed on such other
stock exchange or stock exchanges as the relevant Issuer and the relevant
Dealer(s) may agree.

(C) E.ON AG and E.ON Finance entered into a fiscal agency agreement dated 14
November 2000 which was amended and restated on 16 November 2001 (the "AGENCY
AGREEMENT") in relation to the Programme and now the parties hereto wish to
record certain arrangements which they have made in relation to amending and
restating the Agency Agreement.

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                                    Amended and Restated Fiscal Agency Agreement

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IT IS HEREBY AGREED as follows:

1.       AMENDMENT AND RESTATEMENT

         The parties hereto agree that, with effect from the date hereof, the
         Agency Agreement shall for all purposes be amended and restated in the
         form of this Agreement. Any Notes issued under the Programme on or
         after the date hereof shall be issued pursuant to this Agreement. This
         does not affect any Notes issued under the Programme prior to the date
         of this Agreement.

2.       DEFINITIONS AND INTERPRETATION

(1)      In this Agreement:

         "AGENTS" means the Fiscal Agent, the Calculation Agent, the Paying
         Agents or any of them.

         "CALCULATION AGENT" means, in relation to any Series of Notes, the
         institution appointed as calculation agent for the purposes of such
         Notes and named as such in the relevant Pricing Supplement, in the case
         of the Fiscal Agent, pursuant to Clause 9 hereof, in the case of a
         Dealer or any other institution, pursuant to Clause 17 of the Dealer
         Agreement and, in any case, any successor to such institution in its
         capacity as such.

         "CBF" means Clearstream Banking AG, Frankfurt am Main.

         "CBL" means Clearstream Banking, societe anonyme, Luxembourg.

         "CLEARING SYSTEM" has the meaning set forth in Section 1(4) of the
         Terms and Conditions.

         "COLLECTIVE INTEREST COUPON" means an interest coupon attached to a
         Collective Note substantially in the form set out in Schedule 3 hereto.

         "COUPON" means an interest coupon substantially in the form set out in
         Schedule 3 hereto.

         "EUROCLEAR" means Euroclear Bank S.A./N.V. as operator of the Euroclear
         System.

         "EXCHANGE ACT" means the United States Securities Exchange Act of 1934.

         "FRANKFURT BUSINESS DAY" means a day (other than Saturdays and Sundays)
         on which commercial banks and foreign exchange markets are open for
         business (including dealings in foreign exchange and foreign currency
         deposits) in Frankfurt am Main.

         "HOLDER" means with respect to Notes deposited with any Clearing System
         or other central securities depositary, any holder of a proportionate
         co-ownership or

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         other beneficial interest or right in the Notes, Coupons and/or
         Receipts so deposited, and otherwise the bearer of a Note, Coupon
         and/or Receipt.

         "INSTALMENT NOTE" means a Note the principal amount of which is
         repayable by instalments.

         "INTEREST COMMENCEMENT DATE" means, in the case of interest-bearing
         Notes, the date specified in the applicable Pricing Supplement from
         (and including) which such Notes bear interest, which may or may not be
         the Settlement Date.

         "ISSUE PRICE" means the price, generally expressed as a percentage of
         the principal amount of the Notes, at which the Notes will be issued.

         "ISSUERS" means E.ON AG, E.ON Finance and E.ON UK acting together.

         "LOCAL TIME" in relation to any payment, means the time in the city in
         which the relevant bank or the relevant branch or office thereof is
         located, and any reference to "LOCAL BANKING DAYS" in relation thereto
         is to days (other than Saturdays and Sundays) on which commercial banks
         are open for business (including dealings in foreign exchange and
         foreign currency deposits) in such city or town.

         "RECEIPT" means a payment receipt appertaining to an Instalment Note in
         definitive form.

         "RELEVANT AGREEMENT" means an agreement between the Issuer and any
         Dealer(s) for the sale by the Issuer and the purchase by the Dealer(s)
         of any Notes.

         "RELEVANT DEALER" means, with respect to any Tranche of Notes, the
         institution specified as such in the relevant Pricing Supplement.

         "SPECIFIED OFFICE" of any Agent means the office specified against its
         name in Schedule 5 hereto or, in the case of any Agent not originally
         party hereto, specified in its terms of appointment (or, in the case of
         a Calculation Agent which is a Dealer, specified for the purposes of
         Clause 17 of the Dealer Agreement) or such other office in the same
         city as such Agent may specify by notice to the Issuer and the other
         parties hereto in accordance with Clause 13(9).

         "TERMS AND CONDITIONS" means the Terms and Conditions of the Notes,
         substantially in the form set out in the Information Memorandum.

(2)      Expressions defined elsewhere in this Agreement shall have the meanings
         so indicated. Expressions defined in the Dealer Agreement and the Terms
         and Conditions and not otherwise defined in this Agreement shall have
         the same meanings in this Agreement, except where the context otherwise
         requires.

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

(4)      All references in this Agreement to principal and/or interest or both
         with respect to the Notes or to any moneys payable by either Issuer
         under this Agreement shall have the meaning set out in Section 4(7) of
         the Terms and Conditions.

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

3.       APPOINTMENT OF FISCAL AGENT AND PAYING AGENTS

(1)      Each of E.ON AG, E.ON Finance and E.ON UK hereby appoint the Fiscal
         Agent, and the Fiscal Agent hereby agrees to act, as agent of each of
         E.ON AG, E.ON Finance and E.ON UK in relation to Notes, upon the terms
         and subject to the conditions set out below, for the purposes of:

         (a)      authenticating and delivering Global Notes and Definitive
                  Notes;

         (b)      exchanging Temporary Global Notes for (i) Permanent Global
                  Notes or (ii) Definitive Notes or (iii) Definitive Notes and
                  Collective Notes, as the case may be, in accordance with the
                  terms of such Temporary Global Notes and the Conditions;

         (c)      exchanging Permanent Global Notes for Definitive Notes in
                  accordance with the terms of such Permanent Global Notes and
                  the Conditions;

         (d)      exchanging Collective Notes for Definitive Notes in accordance
                  with the terms of such Collective Notes and the Conditions;

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

         (f)      determining the end of the restricted period applicable to
                  each Tranche;

         (g)      arranging on behalf of E.ON AG, E.ON Finance and E.ON UK for
                  notices to be communicated to Holders;

         (h)      ensuring that, as directed by the Issuer where information is
                  required to be provided by the Issuer, all necessary action is
                  taken to comply with any reporting requirements of any
                  competent authority with respect to any relevant currency as
                  may be in force from time to time with respect to the Notes to
                  be issued under the Programme;

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         (i)      subject to the Procedures Memorandum, submitting to the
                  relevant stock exchange such number of copies of each Pricing
                  Supplement which relates to Notes which are to be listed as it
                  may reasonably require;

         (j)      acting as Calculation Agent with respect to Notes where named
                  as such in the relevant Pricing Supplement and agreed between
                  the Issuer and the Fiscal Agent; and

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

(2)      Each of E.ON AG, E.ON Finance and E.ON UK hereby appoint the Paying
         Agents, and each of the Paying Agents hereby agrees to act, as paying
         agent of the Issuer and (if E.ON Finance or E.ON UK is the Issuer) the
         Guarantor in relation to Notes, upon the terms and subject to the
         conditions set out below, for the purposes of paying sums due on Notes,
         Coupons and Receipts and, if applicable, the Guarantee, and of
         performing all other obligations and duties imposed upon it by the
         Conditions and this Agreement.

4.       THE NOTES

(1)      Each Global Note shall:

         (a)      be printed or typewritten in substantially the form (duly
                  completed) set out in the relevant Schedule hereto (or in such
                  other form as the Issuer, the Fiscal Agent and the Relevant
                  Dealer shall have agreed);

         (b)      have attached thereto the Conditions which may consist of
                  Integrated Conditions or the Long-form Conditions;

         (c)      be executed manually by two authorised signatories of the
                  Issuer;

         (d)      be authenticated manually by or on behalf of the Fiscal Agent;
                  and

         (e)      bear a unique serial number.

(2)      Each Definitive Note shall:

         (a)      be in substantially the form (duly completed) set out in the
                  relevant Schedule hereto (or in such other form as the Issuer,
                  the Fiscal Agent and the Relevant Dealer shall have agreed);

         (b)      unless the contrary is specified in the relevant Pricing
                  Supplement, be in the format from time to time specified by
                  the International Primary Market Association or any successor
                  body thereto;

         (c)      have a unique serial number printed thereon;

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         (d)      if so specified in the relevant Pricing Supplement, have
                  Coupons attached thereto at the time of its initial delivery;

         (e)      in the case of an Instalment Note, if so specified in the
                  relevant Pricing Supplement, have a Receipt attached thereto
                  at the time of its initial delivery;

         (f)      have the Conditions endorsed thereon or attached thereto which
                  may consist of Integrated Conditions or Long-form Conditions;

         (g)      be executed manually or in facsimile by two authorised
                  signatories of the Issuer (and, in the case of E.ON Finance,
                  such authorised signatures shall be Managing Directors);

         (h)      be authenticated manually by or on behalf of the Fiscal Agent;

         (i)      be printed in accordance with the requirements of any Clearing
                  System by which such Notes are intended to be accepted;

         (j)      be printed in accordance with the requirements of any stock
                  exchange, on which such Notes may be listed; and

         (k)      be printed in accordance with, and otherwise satisfy, any
                  other applicable legal and/or regulatory requirements.

(3)      Any facsimile signature affixed to a Definitive Note may be that of a
         person who is at the Issue Date of the relevant Tranche an authorised
         signatory for such purpose of the Issuer (and, in the case of E.ON
         Finance, a Managing Director) notwithstanding that such person may for
         any reason (including death) have ceased to be such an authorised
         signatory at the time at which such Definitive Note may be delivered.

(4)      Execution in facsimile of any Definitive Notes and any photostatic
         copying or other duplication of master Global Notes (in unauthenticated
         form, but executed manually on behalf of the relevant Issuer as stated
         above) shall be binding upon such Issuer in the same manner as if such
         Definitive Notes or such Global Notes were signed manually by such
         authorised signatories.

(5)      Each of E.ON AG, E.ON Finance and E.ON UK shall promptly notify in
         writing the Fiscal Agent of any change in the names of the person or
         persons whose signatures are to be used.

5.       ISSUANCE OF NOTES

(1)      Upon the conclusion of any Relevant Agreement, the Issuer shall, as
         soon as practicable but in any event, not later than 2.00 p.m.
         (Frankfurt time) on the third Frankfurt business day prior to the
         proposed Issue Date:

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         (a)      confirm to the Fiscal Agent by telefax or any electronic
                  information system agreed between the Fiscal Agent and the
                  Issuer all such information as the Fiscal Agent may reasonably
                  require to carry out its functions under this Agreement and
                  such details as are necessary to enable it to authenticate and
                  deliver the Global Note;

         (b)      (if no standard payment instructions have been given to the
                  Fiscal Agent) designate by tested telex or SWIFT the account
                  of the Issuer to which payment of the proceeds of issue should
                  be made;

         (c)      deliver to the Fiscal Agent a copy, duly executed, of the
                  Pricing Supplement; and

         (d)      deliver to the Fiscal Agent the completed Global Note (in
                  unauthenticated form but executed on behalf of the Issuer) in
                  relation to the relevant Tranche, with the Conditions
                  attached.

(2)      On or before 10.00 a.m. (Frankfurt time) on the Frankfurt business day
         prior to the Issue Date in relation to each Tranche or such other time
         as may be agreed between the Fiscal Agent and the relevant Clearing
         System, the Fiscal Agent shall authenticate and deliver the relevant
         Global Note to, or to a depositary for, the relevant Clearing System
         (which, in the case of CBL and Euroclear, shall be a depositary common
         to both of them). The Fiscal Agent shall give instructions to the
         relevant Clearing System to credit Notes represented by a Global Note
         to the Fiscal Agent's distribution account and to hold each such Note
         to the order of the Issuer pending delivery to the Relevant Dealer(s)
         on a delivery against payment basis (or on such other basis as shall
         have been agreed between the Issuer and the Relevant Dealer and
         notified to the Fiscal Agent) in accordance with the normal procedures
         of the relevant Clearing System and, following payment, to credit the
         Notes represented by such Global Note to such securities account(s) as
         shall have been notified to the Fiscal Agent by the Relevant Dealer(s).
         The Fiscal Agent shall on the Issue Date with respect to the relevant
         Tranche and against receipt of funds from the Relevant Dealer(s)
         transfer the proceeds of issue to the Issuer to the account notified in
         accordance with sub-clause (1) above.

(3)      Where the Fiscal Agent acts as receiving bank for the Issuer with
         respect to the proceeds of issue of Notes being issued, if on the
         relevant Issue Date the Fiscal Agent does not receive the full proceeds
         of issue with respect to any Note (the "DEFAULTED NOTE") and, as a
         result, the Defaulted Note remains in the Fiscal Agent's distribution
         account with the Clearing System after such Issue Date, the Fiscal
         Agent shall:

         (i)      continue to hold the Defaulted Note to the order of the
                  Issuer;

         (ii)     notify the Issuer forthwith of the non-receipt of the proceeds
                  of issue with respect to the Defaulted Note; and,
                  subsequently,

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         (iii)    notify the Issuer forthwith upon receipt of the full proceeds
                  of issue with respect to such Defaulted Note.

(4)      The Issuer shall, in relation to each Tranche of Notes which is
         initially represented by a TEFRA C Global Note or a Short Global Note,
         deliver to the Fiscal Agent not less than fourteen Frankfurt business
         days before such Temporary Global Note becomes exchangeable therefor,
         the Definitive Notes or, if so specified in the applicable Pricing
         Supplement, a combination of Definitive Notes and one or more
         Collective Notes. Such Definitive Notes and Collective Note(s) shall be
         delivered to the Fiscal Agent in unauthenticated form, but executed by
         the Issuer and otherwise complete. The Fiscal Agent shall authenticate
         and deliver such Definitive Notes and Collective Notes, as the case may
         be, in accordance with the terms hereof and of such TEFRA C Global Note
         or Short Global Note.

(5)      The Issuer shall, in relation to each Tranche of Notes which is
         initially represented by a TEFRA D Global Note, deliver to the Fiscal
         Agent not less than fourteen (five, in the case of an exchange for a
         Permanent Global Note) Frankfurt business days before such TEFRA D
         Global Note becomes exchangeable therefor, the Permanent Global Note in
         relation thereto or, as the case may be, the Definitive Notes or, if so
         specified in the applicable Pricing Supplement, a combination of
         Definitive Notes and one or more Collective Notes. Such Global Notes,
         Definitive Notes and Collective Notes shall be delivered to the Fiscal
         Agent in unauthenticated form, but executed by the Issuer and otherwise
         complete. The Fiscal Agent shall authenticate and deliver such Global
         Notes, Definitive Notes or Collective Notes, as the case may be, in
         accordance with the terms hereof and of such TEFRA D Global Note.

(6)      Where any Definitive Notes are to be delivered in exchange for a
         Temporary Global Note, the Fiscal Agent shall ensure that (i) in the
         case of Definitive Notes with Coupons attached, such Definitive Notes
         shall have attached thereto only such Coupons as shall ensure that
         neither loss nor gain of interest shall accrue to the bearer thereof;
         (ii) in the case of Instalment Notes with Receipts, such Notes shall
         have attached thereto only such Receipts with respect to instalment
         amounts as shall not then have been paid; and (iii) in the case of
         Instalment Notes without Receipts, any instalment amounts that shall
         have then been paid shall be noted on the grid endorsed on such Notes.

(7)      The Fiscal Agent shall hold in safe custody all unauthenticated Global
         Notes and Definitive Notes (including any Coupons attached thereto)
         delivered to it in accordance with this Clause 5 and Clause 8 and shall
         ensure that the same are authenticated and delivered only in accordance
         with the terms hereof and, if applicable, the relevant Global Note. The
         Issuer shall ensure that each of the Fiscal Agent holds sufficient
         Notes, Receipts or Coupons to fulfil its respective obligations under
         this Clause 5 and Clause 8. The Fiscal Agent undertakes to notify the
         Issuer if it holds insufficient Notes, Coupons or Receipts for such
         purposes.

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(8)      The Fiscal Agent is authorised by each Issuer to authenticate such
         Global Notes or Definitive Notes as may be required to be authenticated
         hereunder by the signature of any person duly authorised for the
         purpose by the Fiscal Agent.

(9)      In the event that a person who has signed on behalf of the Issuer any
         Note not yet issued but held by the Fiscal Agent in accordance with
         clause 5(7) ceases to be authorised as described in clause 5(4) or
         5(5), the Fiscal Agent shall (unless the Issuer gives written notice to
         the Fiscal Agent that Notes signed by that person do not constitute
         valid and binding obligations of the Issuer or otherwise until
         replacements have been provided to the Fiscal Agent) continue to have
         authority to issue any such Notes, and the Issuer hereby warrants to
         the Fiscal Agent that such Notes shall, unless notified as aforesaid,
         be valid and binding obligations of the Issuer. Promptly upon such
         person ceasing to be authorised, the Issuer shall provide the Fiscal
         Agent with replacement Notes and upon receipt of such replacement Notes
         the Fiscal Agent shall cancel and destroy the Notes held by it which
         are signed by such person and shall provide to the Issuer a
         confirmation of destruction in respect thereof specifying the Notes so
         cancelled and destroyed.

(10)     On each occasion on which a portion of a Temporary Global Note is
         exchanged for a portion of a Permanent Global Note, Collective Note or,
         as the case may be, for Definitive Notes (or any combination thereof,
         all as permitted by the Conditions), the Fiscal Agent shall note or
         procure that there is noted on the Schedule to the relevant Global Note
         the aggregate principal amount thereof so exchanged and the remaining
         principal amount of the relevant Global Note (which shall be the
         previous principal amount thereof less (or, in the case of a Permanent
         Global Note or a Collective Note the aggregate principal amount of
         which is to be written up plus) the aggregate principal amount so
         exchanged) and shall procure the signature of such notation on its
         behalf. The Fiscal Agent shall cancel or procure the cancellation of
         each relevant Global Note, against surrender of which it has made full
         exchange for a further Global Note or Definitive Notes (or any
         combination thereof permitted by the Conditions).

(11)     Subject to the procedures set out in the Procedures Memorandum, for the
         purposes of this Clause 5 each of the Fiscal Agent is entitled to treat
         a telephone or telefax communication from a person purporting to be
         (and who the Fiscal Agent believes in good faith to be) the authorised
         representative of the Issuer named in the list referred to in, or
         notified pursuant to, Clause 12(7) as sufficient instructions and
         authority of the Issuer for the Fiscal Agent to act in accordance with
         this Clause 5. Any telephone communication shall be followed as soon as
         practicable by a telefax confirmation of such communication.

(12)     If the Fiscal Agent, in its discretion, pays an amount (the "ADVANCE")
         to the Issuer on the basis that a payment (the "PAYMENT") has been or
         will be, received from a Dealer and if the Payment is not received by
         the Fiscal Agent on the date the Fiscal Agent pays the Issuer, the
         Issuer (failing which the Guarantor, if E.ON Finance or E.ON UK is the
         Issuer) shall repay to the Fiscal Agent the Advance and shall pay
         interest on the Advance (or the unpaid portion thereof) from (and

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         including) the date such Advance is made to (but excluding) the earlier
         of repayment in full of the Advance and receipt in full by the Fiscal
         Agent of the Payment from the Dealer (at a rate quoted at that time by
         the Fiscal Agent as its cost of funding the Advance).

6.       PAYMENTS

(1)      The Issuer (failing which the Guarantor, if E.ON Finance or E.ON UK is
         the Issuer) shall, before 10.00 a.m. (local time in the relevant
         financial centre of the payment currency), on each date on which any
         payment with respect to any Note becomes due, transfer to such account
         as the Fiscal Agent shall specify such amount in the currency in which
         the relevant payment falls to be made as shall be sufficient for the
         purposes of such funds being settled through such payment system as the
         Fiscal Agent and the Issuer may agree. The Fiscal Agent shall not be
         liable to account for interest on money paid to it by the Issuer. Money
         held by the Fiscal Agent need not to be segregated except as required
         by law.

(2)      The Issuer (failing which the Guarantor, if E.ON Finance or E.ON UK is
         the Issuer) shall ensure that no later than 10.00 a.m. (Frankfurt time)
         on the second Frankfurt business day immediately preceding the date on
         which any payment is to be made to the Fiscal Agent pursuant to
         sub-clause (1), the Fiscal Agent shall receive an irrevocable payment
         confirmation from the paying bank of the Issuer.

(3)      The Fiscal Agent shall ensure that payments of both principal and
         interest with respect to a Temporary Global Note will be made only to
         the extent that certification of non-U.S. beneficial ownership as
         required by U.S. securities laws and U.S. Treasury regulations (in the
         form set out in the Temporary Global Note) has been received from the
         relevant Clearing System in accordance with the terms thereof.

(4)      Subject to the receipt by the Fiscal Agent of the payment confirmation
         as provided in sub-clause (2) above, the Fiscal Agent or the relevant
         Paying Agent shall pay or cause to be paid all amounts due with respect
         to the Notes on behalf of the Issuer and (if E.ON Finance or E.ON UK is
         the Issuer) the Guarantor in the manner provided in the Conditions. If
         any payment provided for in sub-clause (1) is made late but otherwise
         in accordance with the provisions of this Agreement, the Fiscal Agent
         and/or each Paying Agent shall nevertheless make payments with respect
         to the Notes as aforesaid following receipt by it of such payment. The
         Fiscal Agent shall, as soon as reasonably possible and no later than
         1.00 p.m. (Frankfurt time) on the business day following the due date,
         notify the Issuer if it has not received such payment from the Issuer.

(5)      If the Fiscal Agent has reason to believe that the amounts to be
         received by the Fiscal Agent pursuant to sub-clause (1) will be, or the
         amounts actually received by it pursuant thereto are, insufficient to
         satisfy all claims with respect to all payments then falling due with
         respect to the Notes, neither the Fiscal Agent nor any Paying Agent
         shall be obliged to pay any such claims until the Fiscal Agent, has
         received the full amount of all such payments.

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                                    Amended and Restated Fiscal Agency Agreement

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(6)      The Fiscal Agent shall not be obliged to repay any moneys paid to it by
         an Issuer with respect to any Note or the Guarantor with respect to the
         Guarantee unless or until claims against the Issuer or the Guarantor
         with respect to the relevant Notes or the Guarantee are prescribed or
         the obligation to make the relevant payment ceases in accordance with
         the Conditions or the terms of the Guarantee. In such event it shall
         upon the request of the Issuer repay, as soon as practicable, to the
         Issuer or the Guarantor, as the case may be, such portion of such
         amount as relates to such claim or payment by paying the same by credit
         transfer to such account with such bank as the Issuer or the Guarantor
         may by notice to the Fiscal Agent have specified for this purpose.

(7)      If the Fiscal Agent pays any amounts to the Holders or to any Paying
         Agent at a time when it has not received payment in full with respect
         to the relevant Notes in accordance with sub-clause (1) (the excess of
         the amounts so paid over the amounts so received being the
         "SHORTFALL"), the Issuer (failing which the Guarantor, if E.ON Finance
         or E.ON UK is the Issuer) shall, in addition to paying amounts due
         under sub-clause (1), pay to the Fiscal Agent on demand interest (at a
         rate which represents the Fiscal Agent's cost of funding the Shortfall)
         on the Shortfall (or the unreimbursed portion thereof) until the
         receipt in full by the Fiscal Agent of the Shortfall.

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

(9)      Where Notes are represented by a Global Note, all payments due with
         respect to such Notes shall be made to, or to the order of, the holder
         of the Global Note, subject to and in accordance with the provisions of
         the Global Note and the Conditions.

(10)     If the amount of principal and/or interest then due for payment is not
         paid in full (otherwise than by reason of a deduction required by law
         to be made therefrom), the Fiscal Agent to which a Note is presented
         for the purpose of making such payment shall make a record of such
         Shortfall on the Note and such record shall, in the absence of manifest
         error, be prima facie evidence that the payment in question has not to
         that extent been made.

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                                    Amended and Restated Fiscal Agency Agreement

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7.       MISCELLANEOUS DUTIES OF THE FISCAL AGENT AND THE PAYING AGENTS

DETERMINATION OF EXCHANGE DATE AND END OF RESTRICTED PERIOD

(1)      If the Notes of the relevant Tranche are initially represented by a
         TEFRA D Global Note then the following provisions shall apply:

         (a)      The Fiscal Agent shall determine the Exchange Date for such
                  TEFRA D Global Note in accordance with the terms thereof.
                  Forthwith upon determining the Exchange Date with respect to
                  any Tranche, the Fiscal Agent shall notify such determination
                  to the Issuer, the Guarantor (if E.ON Finance or E.ON UK is
                  the Issuer) the Relevant Dealer and the Clearing System.

         (b)      In the case of a Tranche with respect to which there is only
                  one Dealer, the Fiscal Agent will determine the end of the
                  restricted period with respect to such Tranche as being the
                  fortieth day following the date certified by the Relevant
                  Dealer to the Fiscal Agent as being the date as of which
                  distribution of the Notes of that Tranche was completed.

         (c)      In the case of a Tranche with respect to which there is more
                  than one Dealer but which is not issued on a syndicated basis,
                  the Fiscal Agent will determine the end of the restricted
                  period with respect to such Tranche as being the fortieth day
                  following the latest of the dates certified by all the
                  Relevant Dealers to the Fiscal Agent as being the respective
                  dates as of which distribution of the Notes of that Tranche
                  purchased by each such Dealer was completed.

         (d)      In the case of a Tranche issued on a syndicated basis, the
                  Fiscal Agent will determine the end of the restricted period
                  with respect to such Tranche as being the fortieth day
                  following the date certified by the Lead Manager to the Fiscal
                  Agent as being the date as of which distribution of the Notes
                  of that Tranche was completed.

         (e)      Forthwith upon determining the end of the restricted period
                  with respect to any Tranche, the Fiscal Agent shall notify
                  such determination to the Issuer, the Guarantor (if E.ON
                  Finance or E.ON UK is the Issuer), the Clearing System and the
                  Relevant Dealer(s) (in the case of a non-syndicated issue) or
                  the Lead Manager (in the case of a syndicated issue).

LISTING

(2)      Where the Notes of the relevant Tranche are to be listed on any stock
         exchange and where the rules of such stock exchange require submission
         of the Pricing Supplement for the listing of such Notes only, the
         Fiscal Agent shall on behalf of the Issuer deliver a copy of the
         Pricing Supplement in relation to such Tranche and, where Integrated
         Conditions are specified in such Pricing Supplement, such Conditions to
         such stock exchange or the relevant listing agent as agreed

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                                    Amended and Restated Fiscal Agency Agreement

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         between the Issuer and the relevant Dealer and notified to the Fiscal
         Agent as soon as practicable but in any event, subject to the timely
         receipt thereof, not later than the time required by such stock
         exchange for submission of Pricing Supplements. The Issuer shall advise
         the Fiscal Agent of the time required by any such stock exchange (other
         than the Luxembourg Stock Exchange) for submission of the Pricing
         Supplement.

(3)      The Fiscal Agent shall not have any responsibility with respect to the
         listing of Notes to be issued under the Programme on any German stock
         exchange. If with respect to any Tranche of Notes, the applicable
         Pricing Supplement provides for the listing of such Tranche on a German
         stock exchange, the relevant Dealer shall attend to obtaining such
         listing.

NOTICES

(4)      Upon the receipt by the Fiscal Agent of a demand or notice from any
         Holder in accordance with the Conditions the Fiscal Agent shall forward
         a copy thereof to the Issuer and (if E.ON Finance or E.ON UK is the
         Issuer) the Guarantor.

(5)      On behalf of and at the request and expense of the Issuer the Fiscal
         Agent shall cause to be published, or delivered to Holders, all notices
         required to be given by the Issuer or the Guarantor (if E.ON Finance or
         E.ON UK is the Issuer) to the Holders in accordance with the
         Conditions.

NOTICE OF WITHHOLDING OR DEDUCTION

(6)      If the Issuer is, with respect to any payment, required to withhold or
         deduct any amount for or on account of taxes or duties of whatever
         nature as specifically contemplated under the Conditions, the Issuer
         and/or the Guarantor (if E.ON Finance or E.ON UK is the Issuer) shall
         give notice thereof to the Fiscal Agent as soon as it becomes aware of
         the requirement to make such withholding or deduction and shall give to
         the Fiscal Agent such information as either of them shall require to
         enable it to comply with such requirement.

DOCUMENTS AVAILABLE FOR INSPECTION

(7)      The executed Guarantee shall be deposited with the Fiscal Agent and
         shall be held in safe custody by it on behalf of the Holders at its
         specified office for the time being. The Fiscal Agent shall upon
         request issue a certified copy of the Guarantee to a Holder for the
         purposes set out in Clause 10 of each of the Guarantee.

(8)      The Paying Agents shall hold available for inspection at their
         specified offices during normal business hours copies of all documents
         required to be so available as provided in the Information Memorandum,
         or in relation to any Notes, the Conditions or Pricing Supplement with
         respect to such Notes, or as may be required by the rules of any stock
         exchange on which the Notes may be listed.

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                                    Amended and Restated Fiscal Agency Agreement

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(9)      For the above purposes, the Issuers shall furnish to the Fiscal Agent
         for distribution among the Paying Agents sufficient copies of each of
         the relevant documents.

INDEMNITY

(10)     Each of the Agents shall severally indemnify E.ON AG, E.ON Finance and
         E.ON UK against any claim, demand, action, liability, loss or expense
         (including legal fees and any applicable value added tax) which either
         of them may incur, as a result or arising out of any negligent or
         wilful breach by such Agent of its obligations under this Agreement.
         The indemnification shall continue after the expiry or termination of
         this Agreement provided that the negligent or wilful breach by such
         Agent of its obligations under this Agreement occurred before the
         expiry or termination of this Agreement.

CANCELLATION OF NOTES, COUPONS AND RECEIPTS

(11)     All Notes which are redeemed and all Coupons and Receipts which are
         paid shall be cancelled by the Fiscal Agent or Paying Agent by which
         they are redeemed, paid or exchanged. In addition, all Notes which are
         purchased by or on behalf of the Issuer and surrendered to a Paying
         Agent for cancellation, together (in the case of Definitive Notes) with
         all unmatured Coupons (if any) attached thereto or surrendered
         therewith, shall be cancelled by the Paying Agent to which they are
         surrendered. Each of the other Paying Agents shall give to the Fiscal
         Agent details of all payments made by it and shall deliver all
         cancelled Notes, Coupons and Receipts to the Fiscal Agent.

(12)     A certificate stating:

         (a)      the aggregate principal amount of Notes which have been
                  redeemed and the aggregate amount paid in respect thereof;

         (b)      the certificate numbers of Notes cancelled together with
                  details of all unmatured Coupons (if any) attached thereto or
                  delivered therewith;

         (c)      the aggregate amount paid with respect to interest on the
                  Notes;

         (d)      the total number by maturity date of Coupons so cancelled; and

         (e)      the serial numbers of such Notes,

         shall be given to the Issuer by the Fiscal Agent as soon as reasonably
         practicable and in any event within three months after the date of such
         repayment or, as the case may be, payment or exchange.

(13)     The Fiscal Agent shall destroy all cancelled Notes, Coupons and
         Receipts and, forthwith upon destruction, furnish the Issuer with a
         certificate of the serial numbers of the Notes and the number by
         maturity date of Coupons or Receipts so destroyed.

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                                    Amended and Restated Fiscal Agency Agreement

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(14)     Without prejudice to the obligations of the Fiscal Agent pursuant to
         sub-clause (12), the Fiscal Agent shall keep a full and complete record
         of all Notes, Coupons and Receipts (other than serial numbers of
         Coupons) and of their redemption, purchase by or on behalf of the
         Issuer and cancellation, payment or exchange (as the case may be) and
         of all replacement Notes, Coupons or Receipts issued in substitution
         for mutilated, defaced, destroyed, lost or stolen Notes, Coupons or
         Receipts. The Fiscal Agent shall with respect to the Coupons of each
         maturity retain until the expiry of ten years from the relevant date
         with respect to such Coupons either all paid or exchanged Coupons of
         that maturity or a list of the serial numbers of Coupons of that
         maturity still remaining unpaid or unexchanged. The Fiscal Agent shall
         at all reasonable times make such record available to the Issuer, the
         Guarantor (if E.ON Finance or E.ON UK is the Issuer) and any persons
         authorised by either of them for inspection and for the taking of
         copies thereof or extracts therefrom.

(15)     All records and certificates made or given pursuant to this Clause and
         Clause 8 shall make a distinction between Notes, Coupons and Receipts
         of each Series.

CHANGE IN THE IDENTITY OF DEALERS

(16)     Each Issuer undertakes to notify the Fiscal Agent of any changes in the
         identity of the Dealers appointed generally with respect to the
         Programme and the Fiscal Agent agrees to notify the other Paying Agents
         thereof.

REPAYMENT

(17)     If the presentation period with respect to Notes or Coupons as
         specified in Clause 8 of the Conditions of the Notes shall have lapsed
         and provided that there is no outstanding bona fide and proper claim
         with respect to any payment with respect to the Notes, the Fiscal Agent
         shall on demand pay to the Issuer or the Guarantor, as the case may be,
         sums equivalent to any amounts paid to it by the Issuer or the
         Guarantor, as the case may be, for the purposes of such payments.

8.       REPLACEMENT NOTES

(1)      Each Issuer will cause a sufficient quantity of additional forms of
         Definitive Notes, Coupons and Receipts to be available, upon request,
         to the Fiscal Agent for the purpose of issuing replacement Notes,
         Coupons or Receipts as provided below. In connection with a specific
         replacement transaction, the Issuer shall upon request deliver to the
         Fiscal Agent sufficient Global Notes for such purpose.

(2)      Subject to compliance with all applicable laws and regulations, the
         Fiscal Agent shall, subject to and in accordance with the Conditions
         and the following provisions of this Clause, cause to be delivered any
         replacement Notes, Coupons or Receipts which the Issuer may determine
         to issue in place of Notes, Coupons or Receipts which have been lost,
         stolen, mutilated, defaced or destroyed.

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

(4)      The Fiscal Agent shall not issue any replacement Note, Coupon or
         Receipt unless and until the claimant therefor shall have:

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

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

         (c)      in the case of any mutilated or defaced Note, Coupon or
                  Receipt surrendered it to the Fiscal Agent.

(5)      The Fiscal Agent shall cancel any mutilated or defaced Notes, Coupons
         or Receipts with respect to which replacement Notes, Coupons or
         Receipts have been issued pursuant to this Clause and shall furnish the
         Issuer with a certificate stating the serial numbers of the Notes,
         Coupons or Receipts so cancelled and, unless otherwise instructed by
         the Issuer in writing, shall destroy such cancelled Notes, Coupons or
         Receipts and furnish the Issuer with a destruction certificate
         containing the information specified in Clause 7(13).

(6)      The Fiscal Agent shall, on issuing any replacement Note, Coupon or
         Receipt, forthwith inform the Issuer and the other Paying Agents of the
         serial number of such replacement Note, Coupon or Receipt issued and
         (if known) of the serial number of the Note, Coupon or Receipt in place
         of which such replacement Note, Coupon or Receipt has been issued.
         Whenever replacement Coupons or Receipts are issued pursuant to the
         provisions of this Clause, the Fiscal Agent shall also notify the other
         Paying Agents of the maturity dates of the lost, stolen, mutilated,
         defaced or destroyed Coupons or Receipts and of the replacement Coupons
         or Receipts issued.

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

(8)      Whenever any Note, Coupon or Receipt for which a replacement Note,
         Coupon or Receipt has been issued and with respect to which the serial
         number is known is presented to the Fiscal Agent or any of the other
         Paying Agents for payment, the Fiscal Agent or, as the case may be, the
         relevant other Paying Agent shall immediately send notice thereof to
         the Issuer and the other Paying Agents and act upon the Issuer's
         instructions.

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                                     - 20 -

9.       APPOINTMENT AND DUTIES OF THE CALCULATION AGENT

(1)      The Fiscal Agent may be appointed as Calculation Agent with respect to
         any Series of Notes by agreement with the Issuer. The Fiscal Agent
         shall be deemed to having agreed to act as Calculation Agent with
         respect to a Series if it shall have been named as Calculation Agent in
         the relevant Pricing Supplement no later than five Frankfurt business
         days before the Issue Date or, if earlier, the first date on which it
         is required to make any calculation or determination and shall not have
         notified the Issuer that it does not wish to be so appointed within
         three Frankfurt business days of receipt by it of the relevant Pricing
         Supplement.

(2)      If the Fiscal Agent has agreed, or is deemed to have agreed to act as
         Calculation Agent, it shall perform all matters expressed to be
         performed by it in, and otherwise comply with, the Conditions and the
         provisions of this Agreement and, in connection therewith, shall take
         all such action as may be incidental thereto.

(3)      The Calculation Agent shall with respect to each Series of Notes in
         relation to which it is appointed as such:

         (a)      obtain such quotes and rates and/or make such determinations,
                  calculations, adjustments, notifications and publications as
                  may be required to be made by it by the Conditions at the
                  times and otherwise in accordance with the Conditions; and

         (b)      maintain a record of all quotations obtained by it and of all
                  amounts, rates and other items determined or calculated by it
                  and make such record available for inspection at all
                  reasonable times during normal business hours by the relevant
                  Issuer and the Paying Agents.

10.      EARLY REDEMPTION OF NOTES

(1)      If the Issuer decides to redeem any Notes for the time being
         outstanding prior to their Maturity Date in accordance with the
         Conditions, it shall give notice of such decision to the Fiscal Agent
         not less than 14 Frankfurt business days before the date on which it
         will give notice to the Holders in accordance with the Conditions of
         such redemption in order to enable the Fiscal Agent to undertake its
         obligations herein and in the Conditions.

(2)      If only some of the Notes are to be redeemed on such date, the Fiscal
         Agent shall take the required steps for identifying the Notes to be
         redeemed in accordance with the Conditions.

(3)      The Fiscal Agent shall publish the notice required in connection with
         any such redemption. Such notice shall specify the matters relevant
         with respect to such redemption in accordance with the provisions of
         the Conditions. The Fiscal Agent will also notify the other Paying
         Agents of any date fixed for redemption of any Notes.

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                                    Amended and Restated Fiscal Agency Agreement

                                     - 21 -

(4)      Each Paying Agent will keep a stock of redemption notices (in such form
         as may be agreed between the Issuer and the Fiscal Agent) and will make
         such notices available on demand to Holders of Notes, the Conditions of
         which provide for redemption at the option of Holders. The Paying Agent
         shall, upon receipt of any such redemption notice, notify forthwith the
         Issuer thereof. Upon receipt of any Note deposited in the exercise of
         such option in accordance with the Conditions, the Paying Agent with
         which such Note is deposited shall hold such Note (together with any
         Coupon relating to it deposited with it) on behalf of the depositing
         Holder (but shall not, save as provided below, release it) until the
         due date for redemption of the relevant Note consequent upon the
         exercise of such option, when, subject as provided below, it shall
         present such Note (and any such Coupon) to itself for payment of the
         amount due thereon together with any interest due on such date in
         accordance with the Conditions and shall pay such moneys in accordance
         with the directions of the Holder contained in the relevant redemption
         notice. lf, prior to such due date for its redemption, such Note
         becomes immediately due and payable or if upon due presentation payment
         of such redemption moneys is improperly withheld or refused, the Paying
         Agent concerned shall post such Note (together with any such Coupon) by
         uninsured post to the relevant Holder unless the Holder has otherwise
         requested and paid the costs of such insurance to the relevant Paying
         Agent at the time of depositing the Notes at such address as may have
         been given by the Holder in the relevant redemption notice. At the end
         of each period for the exercise of such option, each Paying Agent shall
         promptly notify the Fiscal Agent of the principal amount of the Notes
         with respect to which such option has been exercised with it together
         with their serial numbers and the Fiscal Agent shall promptly notify
         such details to the Issuer.

11.      FEES AND EXPENSES

(1)      The Issuers shall pay to the Fiscal Agent for its own account and for
         the account of the Paying Agents and, in case the Fiscal Agent acts as
         Calculation Agent, the Calculation Agent, such fees as may have been
         agreed between them and the Fiscal Agent with respect to the services
         of such Agents hereunder. The Issuer (failing which the Guarantor, if
         E.ON Finance or E.ON UK is the Issuer) shall pay to any Calculation
         Agent such fees as may have been agreed between the Issuer and the
         Guarantor (if E.ON Finance or E.ON UK is the Issuer) and such
         Calculation Agent with respect to its services hereunder.

(2)      The Issuers shall reimburse each Agent for all reasonable expenses
         (including legal fees and any applicable value added tax) properly
         incurred in connection with its services hereunder.

(3)      The Issuers shall pay all stamp, documentary, registration taxes or
         duties and other taxes and duties (including any interest and penalties
         thereon or in connection therewith) which may be payable upon or in
         connection with the execution and delivery of this Agreement and any
         letters of appointment under which any Agent is appointed as agent
         hereunder. The Issuers shall indemnify each Agent against any claim,
         demand, action, liability, loss or expense (including legal fees and
         any applicable value added tax) which it may incur or

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                                    Amended and Restated Fiscal Agency Agreement

                                     - 22 -

         which may be made against it as a result or arising out of any failure
         to pay any such taxes or duties or delay in paying any of the same.

12.      TERMS OF APPOINTMENT

(1)      Each of the Agents and (in the case of (b), (d), (e) and (f)) each
         Calculation Agent may, in connection with its services hereunder:

         (a)      except as ordered by a court of competent jurisdiction or as
                  required by law, treat the bearer of any Note or Coupon as the
                  owner thereof and make payments thereon accordingly;

         (b)      assume that the terms of each Note, Coupon or Receipt as
                  issued are correct;

         (c)      refer any question relating to the ownership of any Note,
                  Coupon or Receipt or the adequacy or sufficiency of any
                  evidence supplied in connection with the replacement of any
                  Note, Coupon or Receipt to the Issuer for determination by
                  such Issuer and rely upon any determination so made;

         (d)      rely upon the terms of any notice, communication or other
                  document reasonably believed by it to be genuine;

         (e)      engage and pay for the advice or services of any lawyers or
                  other experts whose advice or services may to it seem
                  necessary and rely upon any advice so obtained. Such Agent
                  shall be protected and shall incur no liability as against
                  E.ON AG, E.ON Finance or E.ON UK with respect to any action
                  taken, or suffered to be taken, in accordance with such advice
                  and in good faith; and

         (f)      treat itself as being released from any obligation to take any
                  action hereunder which it reasonably expects will result in
                  any expense or liability to it, the payment of which within a
                  reasonable time is not, in its reasonable opinion, assured to
                  it.

(2)      In acting hereunder and in connection with the Notes, the Agents shall
         act solely as agents of E.ON AG, E.ON Finance and E.ON UK and will not
         thereby assume any obligations towards or relationship of agency or
         trust for or with any of the Holders.

(3)      In acting hereunder and in connection with the Notes, the Agents shall
         not be liable for the legality, validity or enforceability of any Note,
         Coupon or Receipt.

(4)      Each Agent may purchase, hold and dispose of Notes, Coupons or Receipts
         and may enter into any transaction (including, among other
         transactions, any depositary, trust or agency transaction) with any
         Holder or with any other party hereto in the same manner as if it had
         not been appointed as the agent of E.ON AG, E.ON Finance and E.ON UK.

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                                    Amended and Restated Fiscal Agency Agreement

                                     - 23 -

(5)      The Issuers shall indemnify each Agent against any claim, demand,
         action, liability, loss or expense (including legal fees and any
         applicable value added tax) which such Agent may reasonably incur,
         otherwise than as a result of or arising out of any negligent or wilful
         breach by such Agent of its obligations under this Agreement. The
         indemnification shall continue after the expiry or termination of this
         Agreement provided that the event which led to that claim, demand,
         action, liability, loss or expense occurred before the expiry or
         termination of this Agreement.

(6)      The obligations of the Agents hereunder shall be several, and not
         joint. The Agents shall only be obliged to perform those duties set out
         in this Agreement, the Procedures Memorandum and the Notes.

(7)      Each of the Issuers shall provide the Fiscal Agent with a list of
         persons authorised to execute documents and take action on its behalf
         in connection with this Agreement, such list to be signed by two duly
         authorised signatories of E.ON AG, E.ON Finance and E.ON UK,
         respectively. E.ON AG, E.ON Finance and E.ON UK shall notify the Fiscal
         Agent if any of such persons ceases to be so authorised or if any
         additional person becomes so authorised by notice signed by two duly
         authorised signatories of E.ON AG, E.ON Finance and E.ON UK, as the
         case may be.

13.      CHANGES IN AGENTS

(1)      The Fiscal Agent may (subject as provided in sub-clause (3) below) at
         any time resign as Fiscal Agent by giving at least 30 days' written
         notice to E.ON AG, E.ON Finance and E.ON UK of such intention on its
         part, specifying the date on which its desired resignation shall become
         effective, provided that no such notice may expire with respect to any
         Series less than 10 days before or after any due date for payments with
         respect to any Notes or Coupons of such Series.

(2)      The Fiscal Agent may (subject as provided in sub-clause (3) below) be
         removed at any time by E.ON AG, E.ON Finance and E.ON UK on at least 30
         days' notice by the filing with it of an instrument in writing signed
         on behalf of E.ON AG, E.ON Finance and E.ON UK specifying such removal
         and the date when it shall become effective.

(3)      Any resignation under sub-clause (1) or removal under sub-clauses (2)
         or (4) shall only take effect upon the appointment by E.ON AG, E.ON
         Finance and E.ON UK as hereinafter provided, of a successor Fiscal
         Agent and (other than in cases of insolvency of the Fiscal Agent) on
         the expiry of the notice to be given under Clause 15. E.ON AG, E.ON
         Finance and E.ON UK agree with the Fiscal Agent that if, by the day
         falling ten days before the expiry of any notice under sub-clause (1),
         E.ON AG, E.ON Finance and E.ON UK have not appointed a successor Fiscal
         Agent, then the Fiscal Agent shall be entitled, on behalf of E.ON AG,
         E.ON Finance and E.ON UK, to appoint as a successor Fiscal Agent in its
         place a reputable financial institution of good standing which E.ON AG,
         E.ON

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                                    Amended and Restated Fiscal Agency Agreement

                                     - 24 -

         Finance and E.ON UK shall approve (such approval not to be unreasonably
         withheld or delayed).

(4)      In case at any time the Fiscal Agent resigns, or is removed, or becomes
         incapable of acting or is adjudged bankrupt or insolvent, or files a
         voluntary petition in bankruptcy or makes an assignment for the benefit
         of its creditors or consents to the appointment of an administrator,
         liquidator or administrative or other receiver of all or a substantial
         part of its property, or admits in writing its inability to pay or meet
         its debts as they mature or suspends payment thereof, or if any order
         of any court is entered approving any petition filed by or against it
         under the provisions of any applicable bankruptcy or insolvency law a
         successor Fiscal Agent, which shall be a reputable financial
         institution of good standing may be appointed by E.ON AG, E.ON Finance
         and E.ON UK by an instrument in writing filed with the successor Fiscal
         Agent. Upon the appointment as aforesaid of a successor Fiscal Agent
         and acceptance by the latter of such appointment and (other than in
         case of insolvency of the Fiscal Agent when it shall be of immediate
         effect) upon expiry of the notice to be given under Clause 15, the
         Fiscal Agent so superseded shall cease to be the Fiscal Agent
         hereunder.

(5)      Subject to the applicable provisions of the Conditions, E.ON AG, E.ON
         Finance and E.ON UK may, after prior consultation with the Fiscal
         Agent, terminate the appointment of any Paying Agent or Calculation
         Agent at any time and/or appoint one or more further Paying Agents or
         Calculation Agent by giving to the Fiscal Agent, and to the relevant
         Paying Agent at least 30 days' notice in writing to that effect (other
         than in the case of insolvency of the Paying Agent or Calculation
         Agent).

(6)      Subject to the applicable provisions of the Conditions, any Paying
         Agent or Calculation Agent may resign its appointment hereunder at any
         time by giving E.ON AG, E.ON Finance, E.ON UK and the Fiscal Agent at
         least 30 days' written notice to that effect, provided that no such
         notice may expire with respect to any Series less than 10 days before
         or after any due date for payments with respect to any Notes or Coupons
         of such Series.

(7)      Upon its resignation or removal becoming effective, the Fiscal Agent:

         (a)      shall forthwith transfer all moneys held by it hereunder and,
                  if applicable, the documents and records referred to in
                  Clauses 7(7), (8), (9), (14) and 8(7) and all Notes, Coupons
                  or Receipts surrendered and not yet destroyed to the successor
                  Fiscal Agent hereunder; and

         (b)      shall be entitled to the payment by E.ON AG, E.ON Finance and
                  E.ON UK of its fees and expenses for the services therefore
                  rendered hereunder in accordance with the terms of Clause 11.

(8)      Upon its appointment becoming effective, a successor Fiscal Agent or
         Calculation Agent and any new Paying Agent shall, without further act,
         become vested with all the rights, duties and obligations of its
         predecessor or, as the case

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 25 -

         may be, a Paying Agent with like effect as if originally named as
         Fiscal Agent or (as the case may be) a Paying Agent or Calculation
         Agent hereunder.

(9)      lf the Fiscal Agent or any Paying Agent or Calculation Agent determines
         to change its specified office it shall (after having, in any such case
         other than a change of specified office within the same city, obtained
         the prior written approval of E.ON AG, E.ON Finance and E.ON UK
         thereto) give to E.ON AG, E.ON Finance and E.ON UK and (if applicable)
         the Fiscal Agent written notice of such determination giving the
         address of the new specified office which shall be in the same city and
         stating the date on which such change is to take effect, which shall
         not be less than 30 days thereafter. The Fiscal Agent (on behalf of the
         Issuer (failing which the Guarantor, if E.ON Finance or E.ON UK is the
         Issuer)) shall within 15 days of receipt of such notice (unless the
         appointment of the Fiscal Agent or the Paying Agent or Calculation
         Agent, as the case may be, is to terminate pursuant to the above
         sub-clauses on or prior to the date of such change) give or cause to be
         given not more than 30 days' nor less than 15 days' notice thereof to
         the Holders in accordance with the Conditions.

14.      MERGER AND CONSOLIDATION

         Any corporation into which the Fiscal Agent, Paying Agent or
         Calculation Agent may be merged or converted, or any corporation with
         which the Fiscal Agent, Paying Agent or Calculation Agent may be
         consolidated, or any corporation resulting from any merger, conversion
         or consolidation to which the Fiscal Agent, Paying Agent or Calculation
         Agent shall be a party, or any corporation to which the Fiscal Agent,
         Paying Agent or Calculation Agent shall sell or otherwise transfer all
         or substantially all the assets of the Fiscal Agent, Paying Agent or
         Calculation Agent shall, on the date when such merger, conversion,
         consolidation or transfer becomes effective and to the extent permitted
         by any applicable laws, become the successor Fiscal Agent, Paying Agent
         or Calculation Agent under this Agreement without the execution or
         filing of any paper or any further act on the part of the parties
         hereto, unless otherwise required by E.ON AG, E.ON Finance or E.ON UK
         and after the said effective date all references in this Agreement to
         the Fiscal Agent, Paying Agent or Calculation Agent shall be deemed to
         be references to such corporation. Written notice of any such merger,
         conversion, consolidation or transfer shall be given to E.ON AG, E.ON
         Finance and E.ON UK by the Fiscal Agent, Paying Agent or Calculation
         Agent concerned.

15.      NOTIFICATION OF CHANGES TO AGENTS

         Following receipt of notice of resignation from the Fiscal Agent,
         Paying Agent or Calculation Agent and forthwith upon appointing a
         successor Fiscal Agent, Paying Agent or Calculation Agent or on giving
         notice to terminate the appointment of any Fiscal Agent, Paying Agent
         or Calculation Agent, the Fiscal Agent shall give or cause to be given
         not more than 30 days' nor less than 15 days' notice thereof to the
         Holders in accordance with the Conditions. Such notice shall be on
         behalf and at the expense of the Issuer unless the resignation from or
         termination of the appointment is solely attributable to the party
         giving notice in which case such party shall bear the costs.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 26 -

16.      COMMUNICATION BETWEEN THE PARTIES

         A copy of all communications relating to the subject matter of this
         Agreement between the Issuer or (if E.ON Finance or E.ON UK is the
         Issuer) the Guarantor and the Holders on the one hand and any of the
         Paying Agents (other than the Fiscal Agent or the Calculation Agent) on
         the other hand shall be sent by the Paying Agent or the Calculation
         Agent to the Fiscal Agent.

17.      CURRENCY INDEMNITY

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

18.      NOTICES AND COMMUNICATIONS

(1)      All notices and communications under this Agreement shall be by letter
         or telefax, posted or delivered by hand, or (but only where
         specifically provided in the Procedures Memorandum) by telephone. Each
         notice or communication shall be given as follows:

         (a)      if to E.ON AG, at:

                  E.ON AG
                  E.ON Platz 1
                  D-40479 Dusseldorf

                  Telephone:   +49 211 4579-425
                  Telefax:     +49 211 4579-959
                  Attention:   Geschaftsbuchhaltung: Mr. Klaus Mokros

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 27 -

         (b)      if to E.ON Finance, at:

                  E.ON International Finance B.V.
                  Strawinskylaan 3111
                  1077 ZX Amsterdam
                  The Netherlands

                  Telephone:   +31 20 406 4453
                  Telefax:     +31 20 406 4555
                  Attention:   Mr. Peter Pels

                  with a copy thereof to E.ON AG at the address, telefax number
                  or telephone number specified in paragraph (a) above.

         (c)      if to E.ON UK, at:

                  E.ON UK plc
                  City Point
                  1 Ropemaker Street
                  London EC2Y 9HT
                  United Kingdom

                  Telephone:   +44 207 826 2868
                  Telefax:     +44 207 826 2860
                  Attention:   Graham Wood

                  with a copy thereof to E.ON AG at the address, telefax number
                  or telephone number specified in paragraph (a) above.

         (d)      if to the Fiscal Agent or a Paying Agent or to the Calculation
                  Agent where the Fiscal Agent is the Calculation Agent, at:

                  Citibank, N.A.
                  P.O. Box 18055
                  5, Carmelite Street
                  GB-London EC4Y 0PA

                  Telephone:   +44 20 7508 3800
                  Telefax:     +44 20 7508 3876/7/8/9
                  Attention:   Agency & Trust Services

                  (or in the case of a Fiscal Agent not originally a party
                  hereto, specified by notice to the other parties hereto at or
                  about the time of its appointment as the agent of the Issuer)

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 28 -

         (e)      if to the Calculation Agent where the Fiscal Agent is not the
                  Calculation Agent to it at the address, telefax number or
                  telephone number, specified by notice to the other parties
                  hereto at or about the time of its appointment as agent of the
                  Issuer.

         or, in any case, to such other address, telefax number or telephone
         number or for the attention of such other person or department as the
         addressee has by prior notice to the sender specified for the purpose.

(2)      Every notice or communication sent in accordance with sub-clause (1)
         shall be effective as follows:

         (a)      LETTER OR TELEFAX: if sent by letter or telefax, upon receipt
                  by the addressee;

         (b)      TELEPHONE: if made on the telephone, upon being made.

         In the case of (a) or (b) above, any such notice or communication which
         would otherwise take effect after 4.00 p.m. in the place of the
         addressee on any particular day shall not take effect until 10.00 a.m.
         on the immediately succeeding business day in the place of the
         addressee.

19.      GOVERNING LAW, PLACE OF JURISDICTION AND PROCESS AGENT

(1)      This Agreement shall be governed by, and construed in accordance with,
         German law.

(2)      Any action or other legal proceedings ("PROCEEDINGS") arising out of or
         in connection with this Agreement shall be brought in the District
         Court (Landgericht) in Dusseldorf.

         Nothing contained herein shall limit the right of any party hereto to
         take Proceedings against any other party hereto in any other court of
         competent jurisdiction.

(3)      E.ON Finance and E.ON UK hereby appoint E.ON AG, with current address
         at E.ON Platz 1, D-40479 Dusseldorf, as its agent for service of
         process in any Proceedings brought, or to be brought, in any court in
         the Federal Republic of Germany. E.ON Finance and E.ON UK agree that,
         in the event of E.ON AG ceasing so to act, it will appoint another
         person as its agent for service of process in the Federal Republic of
         Germany with respect to any Proceedings.

         Nothing herein shall affect the right to serve process in any other
         manner permitted by law.

20.      SEVERABILITY AND PARTIAL INVALIDITY

         Should any provision of this Agreement be or become invalid in whole or
         in part, the other provisions shall remain in force. The invalid
         provision shall be deemed

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 29 -

         substituted by a valid provision which accomplishes as far as legally
         possible the economic purposes of the invalid provision.

21.      AMENDMENT

         This Agreement may be amended by agreement in writing among the parties
         hereto without the consent of the Holders.

22.      COUNTERPARTS

         This Agreement may be signed in any number of counterparts, all of
         which, taken together, shall constitute one and the same agreement

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 30 -

IN WITNESS WHEREOF, the parties hereto have executed this Fiscal Agency
Agreement as of the date first written above.

E.ON AG

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

E.ON INTERNATIONAL FINANCE B.V.

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

E.ON UK PLC

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

CITIBANK, N.A.
as Fiscal Agent

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

BANQUE DE LUXEMBOURG S.A.
as Paying Agent

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

CITIBANK AG
as Paying Agent

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

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 31 -

Without prejudice to the foregoing execution of the Agreement by the parties
thereto, Banque de Luxembourg S.A. expressly and specifically confirms its
agreement with the provisions of Clause 19(2) of this Agreement for the purposes
of article 63.2 of EC Regulation n degrees 44/2001 of 22nd December, 2000 on
jurisdiction and the recognition and enforcement of judgments in civil and
commercial matters.

BANQUE DE LUXEMBOURG S.A.

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

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 32 -

                                   SCHEDULE 1
                                     PART I
                       German language form of Global Note

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

                                  Serien Nr. -
Common Code Nr. -                                                          WKN -
ISIN Nr. -                                      [Sonstige Wertpapier-Kenn-Nr. -]

[Any United States person who holds this obligation will be subject to
limitations under the United States income tax laws including the limitations
provided in sections 165(j) and 1287(a) of the Internal Revenue Code.](1)

                                    [E.ON AG,
                   Dusseldorf, Bundesrepublik Deutschland](2)

                        [E.ON INTERNATIONAL FINANCE B.V.
                           Amsterdam, Niederlande](2)

                                  [E.ON UK PLC
         eingetragen mit beschrankter Haftung in England and Wales](2)

                       [Vorlaufige] [Dauer-] Globalurkunde

            [unter der unbedingten und unwiderruflichen Garantie der

                                  E.ON AG](2)

                                      uber
                      [WAHRUNG UND NENNBETRAG DER EMISSION]

                          SCHULDVERSCHREIBUNGEN fallig

                                [FALLIGKEITSJAHR]

Diese [Vorlaufige] [Dauer-] Globalurkunde verbrieft eine ordnungsgemass
genehmigte Emission von [WAHRUNG UND NENNBETRAG DER EMISSION]
Schuldverschreibungen, fallig [FALLIGKEITSJAHR] (die "SCHULDVERSCHREIBUNGEN")
der [E.ON AG] [E.ON International Finance B.V.] [E.ON UK plc] (die
"EMITTENTIN"). Bezugnahmen in dieser Urkunde auf die "Bedingungen" verstehen
sich auf die [IM FALLE NICHT-KONSOLIDIERTER BEDINGUNGEN: Emissionsbedingungen in
der durch das Konditionenblatt fur die Schuldverschreibungen (das
"KONDITIONENBLATT") vervollstandigten, geanderten, erganzten oder ersetzten
Form. Die Emissionsbedingungen und das Konditionenblatt sind dieser Urkunde
beigefugt] [IM FALLE KONSOLIDIERTER BEDINGUNGEN: Bedingungen, die dieser Urkunde
beigefugt sind]. Die

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

(1)      Dieser Absatz ist entbehrlich, wenn die Schuldverschreibungen eine
         ursprungliche Laufzeit von einem Jahr oder weniger haben.
(2)      Streichen soweit nicht anwendbar.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 33 -

Bedingungen sind Teil dieser [Vorlaufigen] [Dauer-] Globalurkunde. Die in den
Bedingungen definierten Begriffe haben, soweit hierin verwendet, in dieser
Urkunde die gleiche Bedeutung.

Die Emittentin verpflichtet sich, dem Inhaber dieser Urkunde die auf die durch
diese [Vorlaufige] [Dauer-] Globalurkunde verbrieften Schuldverschreibungen
zahlbaren Betrage gemass den Bedingungen zu zahlen.

Bei jeder Ruckzahlung oder jedem Kauf und jeder Entwertung von
Schuldverschreibungen, die durch diese [Vorlaufige] [Dauer-] Globalurkunde
verbrieft werden, werden die Einzelheiten der Ruckzahlung oder des Kaufs und der
Entwertung von der oder fur die Emittentin in Anhang A zu dieser Urkunde
vermerkt. Der entsprechende Vermerk im Anhang A zu dieser Urkunde, in dem die
Ruckzahlung oder der Kauf und die Entwertung vermerkt werden, ist von der oder
fur die Emittentin zu unterzeichnen. Nach der Ruckzahlung oder dem Kauf und der
Entwertung ist der Nennbetrag dieser [Vorlaufigen] [Dauer-] Globalurkunde um den
Nennbetrag der zuruckgezahlten oder gekauften und entwerteten
Schuldverschreibungen reduziert. Der Nennbetrag dieser [Vorlaufigen] [Dauer-]
Globalurkunde nach der Ruckzahlung oder dem Kauf und der Entwertung ist dann der
jeweils letzte in der betreffenden Spalte in Teil I oder II des Anhangs A zu
dieser Urkunde vermerkte Nennbetrag.

[Diese Globalurkunde wird gemass Section 1 der Bedingungen ausgetauscht. Bei
vollstandigem Austausch ist diese Globalurkunde der Emissionsstelle
auszuhandigen.](3)

Diese [Vorlaufige] [Dauer-] Globalurkunde unterliegt deutschem Recht.

Diese [Vorlaufige] [Dauer-] Globalurkunde ist nur gultig, wenn sie die
Kontrollunterschrift der Emissionsstelle oder ihres Beauftragten tragt.

[Dusseldorf] [Amsterdam] [London], den [Datum]

[E.ON AG] [E.ON INTERNATIONAL FINANCE B.V.] [E.ON UK PLC]

-------------------------     -------------------------
UNTERSCHRIFTSBERECHTIGTER     UNTERSCHRIFTSBERECHTIGTER

Kontrollunterschrift

-----------------------
UNTERSCHRIFTSBERECHTIGTER

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 34 -

[IM FALLE NICHT-KONSOLIDIERTER BEDINGUNGEN:
Die Emissionsbedingungen und das Konditionenblatt sind als Anlage beizufugen.]

[IM FALLE KONSOLIDIERTER BEDINGUNGEN:
Die Bedingungen sind als Anlage beizufugen.]

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 35 -

                                    ANHANG A

                                     Teil I
                                    Tilgungen

Tilgungstag   Gesamtbetrag     Gezahlter  Verbleibender     Bestatigung der
              des zahlbaren    Kapital-   Nennbetrag        Zahlung durch oder
              Kapitalbetrages  betrag     dieser Global-    fur die Emittentin
                                          urkunde nach
                                          Zahlung

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

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 36 -

                                     Teil II
                               Kauf und Entwertung

Tag des Kaufs  Betrag des Kaufs   Verbleibender Nennbe-    Bestatigung des Kaufs
und der        und der            trag dieser Globalur-    und der Entwertung
Entwertung     Entwertung         kunde nach Kauf und      durch oder fur die
                                  Entwertung               Emittentin

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

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 37 -

[IM FALLE VON EMISSIONEN VON SCHULDVERSCHREIBUNGEN, AUF DIE DIE TEFRA D RULES
ANWENDUNG FINDEN, WIRD DER VORLAUFIGEN GLOBALURKUNDE DAS FOLGENDE MUSTER
BEIGEFUGT:

                                    ANHANG B

                     ERFASSUNG DER VORGENOMMENEN AUSTAUSCHE

Datum          Nennbetrag, der gegen      Verbleibender           Vermerk
               Dauerglobalurkunde(en)     Nennbetrag nach         namens der
               ausgetauscht wurde         erfolgtem Austausch     Emittentin

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

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

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

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

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

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

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

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

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

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 38 -

[IM FALLE EINER EMISSION VON SCHULDVERSCHREIBUNGEN, AUF DIE DIE TEFRA D RULES
ANWENDUNG FINDEN, WERDEN DIE FOLGENDEN MUSTER DER BESTATIGUNG ODER ANDERE
UBLICHERWEISE VERWENDETE MUSTER DER VORLAUFIGEN GLOBALURKUNDE BEIGEFUGT.]

                                    ANLAGE I

[Form of certificate to be given in relation to exchanges of this Temporary
        Global Note for the Permanent Global Note or Definitive Notes:]

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

                                    [E.ON AG]
                        [E.ON INTERNATIONAL FINANCE B.V.]
                                  [E.ON UK PLC]

                 [AGGREGATE PRINCIPAL AMOUNT AND TITLE OF NOTES]
                               (THE "SECURITIES")

This is to certify that, based solely on certifications we have received in
writing, by tested telex or by electronic transmission from member organisations
appearing in our records as persons being entitled to a portion of the principal
amount set forth below (our "MEMBER ORGANISATIONS") substantially to the effect
set forth in the Fiscal Agency Agreement, as of the date hereof, [ ] principal
amount of the above-captioned Securities (i) is owned by persons that are not
citizens or residents of the United States, domestic partnerships, domestic
corporations or any estate or trust the income of which is subject to United
States Federal income taxation regardless of its source ("UNITED STATES
PERSONS"), (ii) is owned by United States persons that (a) are foreign branches
of United States financial institutions (as defined in U.S. Treasury Regulations
Section 1. 165-12(c)(1)(v) ("FINANCIAL INSTITUTIONS")) purchasing for their own
account or for resale, or (b) acquired the Securities through and are holding
through on the date hereof (as such terms "acquired through" and "holding
through" are described in U.S. Treasury Regulations Section
1.163-5(c)(2)(i)(D)(6)) foreign branches of United States financial institutions
(and in either case (a) or (b), each such United States financial institution
has agreed, on its own behalf or through its agent, that we may advise the
Issuer or the Issuer's agent that it will comply with the requirements of
Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as
amended, and the regulations thereunder), or (iii) is owned by United States or
foreign financial institutions for purposes of resale during the restricted
period (as defined in U.S. Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)),
and to the further effect that United States or foreign financial institutions
described in clause (iii) above (whether or not also described in clause (i) or
(ii)) have certified that they have not acquired the Securities for purposes of
resale directly or indirectly to a United States person or to a person within
the United States or its possessions.

As used herein, "UNITED STATES" means the United States of America (including
the States and the District of Columbia); and its "POSSESSIONS" include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 39 -

We further certify (i) that we are not making available herewith for exchange
(or, if relevant, exercise of any rights or collection of any interest) any
portion of the temporary global security excepted in such certifications and
(ii) that as of the date hereof we have not received any notification from any
of our Member Organisations to the effect that the statements made by such
Member Organisations with respect to any portion of the part submitted herewith
for exchange (or, if relevant, exercise of any rights or collection of any
interest) are no longer true and cannot be relied upon as at the date hereof.

We understand that this certification is required in connection with certain tax
laws and, if applicable, certain securities laws of the United States. In
connection therewith, if administrative or legal proceedings are commenced or
threatened in connection with which this certification is or would be relevant,
we irrevocably authorise you to produce this certification to any interested
party in such proceedings.

Date:  [    ]*

[CLEARSTREAM BANKING AG/EUROCLEAR BANK S.A./N.V. AS OPERATOR OF THE EUROCLEAR
SYSTEM/CLEARSTREAM BANKING SOCIETE ANONYME/OTHER CLEARING SYSTEM]

----------------------
[authorised signature]

---------------------
*        To be dated not earlier than the Exchange Date.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 40 -

                                    ANLAGE II

[Form of certificate to be given in relation to payments of interest falling due
                           before the Exchange Date:]

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

                                    [E.ON AG]
                        [E.ON INTERNATIONAL FINANCE B.V.]
                                  [E.ON UK PLC]

                 [AGGREGATE PRINCIPAL AMOUNT AND TITLE OF NOTES]
                               (THE "SECURITIES")

This is to certify that, based solely on certifications we have received in
writing, by tested telex or by electronic transmission from member organisations
appearing in our records as persons being entitled to a portion of the principal
amount set forth below (our "MEMBER ORGANISATIONS") substantially to the effect
set forth in the Fiscal Agency Agreement, as of the date hereof, [ ] principal
amount of the above-captioned Securities (i) is owned by persons that are not
citizens or residents of the United States, domestic partnerships, domestic
corporations or any estate or trust the income of which is subject to United
States Federal income taxation regardless of its source ("UNITED STATES
PERSONS"), (ii) is owned by United States persons that (a) are foreign branches
of United States financial institutions (as defined in U.S. Treasury Regulations
Section 1.165-12(c)(1)(v) ("FINANCIAL INSTITUTIONS")) purchasing for their own
account or for resale, or (b) acquired the Securities through and are holding
through on the date hereof (as such terms "acquired through" and "holding
through" are described in U.S. Treasury Regulations Section
1.163-5(c)(2)(i)(D)(6)) foreign branches of United States financial institutions
(and in either case (a) or (b), each such United States financial institution
has agreed, on its own behalf or through its agent, that we may advise the
Issuer or the Issuer's agent that it will comply with the requirements of
Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as
amended, and the regulations thereunder), or (iii) is owned by United States or
foreign financial institutions for purposes of resale during the restricted
period (as defined in U.S. Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)),
and to the further effect that United States or foreign financial institutions
described in clause (iii) above (whether or not also described in clause (i) or
(ii)) have certified that they have not acquired the Securities for purposes of
resale directly or indirectly to a United States person or to a person within
the United States or its possessions.

As used herein, "UNITED STATES" means the United States of America (including
the States and the District of Columbia); and its "POSSESSIONS" include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands.

We further certify (i) that we are not making available herewith for exchange
(or, if relevant, exercise of any rights or collection of any interest) any
portion of the temporary global security excepted in such certifications and
(ii) that as of the date hereof we have not received any notification from any
of our Member Organisations to the effect that the statements made by such
Member Organisations with respect to any portion of the part

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 41 -

submitted herewith for exchange (or, if relevant, exercise of any rights or
collection of any interest) are no longer true and cannot be relied upon as at
the date hereof.

We understand that this certification is required in connection with certain tax
laws and, if applicable, certain securities laws of the United States. In
connection therewith, if administrative or legal proceedings are commenced or
threatened in connection with which this certification is or would be relevant,
we irrevocably authorise you to produce this certification to any interested
party in such proceedings.

Date:  [    ]*

[CLEARSTREAM BANKING AG/EUROCLEAR BANK S.A./N.V. AS OPERATOR OF THE EUROCLEAR
SYSTEM/CLEARSTREAM BANKING SOCIETE ANONYME/OTHER CLEARING SYSTEM]

----------------------
[authorised signature]

---------------------
*            To be dated not earlier than the relevant interest payment date.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 42 -

                                   ANLAGE III

[Form of account holders certification referred to in the preceding
certificates:]

                                    [E.ON AG]
                        [E.ON INTERNATIONAL FINANCE B.V.]
                                  [E.ON UK PLC]

                 [AGGREGATE PRINCIPAL AMOUNT AND TITLE OF NOTES]
                               (THE "SECURITIES")

This is to certify that as of the date hereof, and except as set forth below,
the above-captioned Securities held by you for our account (i) are owned by
persons that are not citizens or residents of the United States, domestic
partnerships, domestic corporations or any estate or trust the income of which
is subject to the United States Federal income taxation regardless of its source
("UNITED STATES PERSONS"), (ii) are owned by United States person(s) that (a)
are foreign branches of a United States financial institution (as defined in
U.S. Treasury Regulations Section 1.165-12(c)(1)(v)) ("FINANCIAL INSTITUTIONS")
purchasing for their own account or for resale, or (b) acquired the Securities
through and are holding through on the date hereof (as such terms "acquired
through" and "holding through" are described in U.S. Treasury Regulations
Section 1.163-5(c)(2)(i)(D)(6)) foreign branches of United States financial
institutions (and in either case (a) or (b), each such United States financial
institution hereby agrees, on its own behalf or through its agent, that you may
advise the Issuer or the Issuer's agent that it will comply with the
requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of
1986, as amended, and the regulations thereunder), or (iii) are owned by United
States or foreign financial institution(s) for purposes of resale during the
restricted period (as defined in U.S. Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and in addition if the owner of the Securities is a
United States or foreign financial institution described in clause (iii) above
(whether or not also described in clause (i) or (ii)) this is further to certify
that such financial institution has not acquired the Securities for purposes of
resale directly or indirectly to a United States person or to a person within
the United States or its possessions.

As used herein, "UNITED STATES" means the United States of America (including
the States and the District of Columbia); and its "POSSESSIONS" include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands.

We undertake to advise you promptly by tested telex on or prior to the date on
which you intend to submit your certification relating to the Securities held by
you for our account in accordance with your operating procedures if any
applicable statement herein is not correct on such date, and in the absence of
any such notification it may be assumed that this certification applies as of
such date.

This certification excepts and does not relate to [ ] of such interest in the
above Securities with respect to which we are not able to certify and as to
which we understand

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 43 -

exchange and delivery of definitive Securities (or, if relevant, exercise of any
rights or collection of any interest) cannot be made until we do so certify.

We understand that this certification is required in connection with certain tax
laws and, if applicable, certain securities laws of the United States. In
connection therewith, if administrative or legal proceedings are commenced or
threatened in connection with which this certification is or would be relevant,
we irrevocably authorise you to produce this certification to any interested
party in such proceedings.

Date:  [    ]*

[ACCOUNT HOLDER] as or as agent for the beneficial owner of the Notes.

----------------------
[authorised signature]

-----------------------
*        To be dated not earlier than fifteen days before the Exchange Date or,
         as the case may be, the relevant interest payment date.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 44 -

                                   SCHEDULE 1
                                     PART II

                      English language form of Global Note

                                  Series No. -

Common Code No. -                                                          WKN -
ISIN No. -                                 [Other Security Identification No. -]

[Any United States person who holds this obligation will be subject to
limitations under the United States income tax laws including limitations
provided in sections 165(j) and 1287(a) of the Internal Revenue Code.](1)

                                    [E.ON AG
       with statutory seat at Dusseldorf, Federal Republic of Germany](2)

                        [E.ON INTERNATIONAL FINANCE B.V.
             with statutory seat at Amsterdam, The Netherlands](2)

                                  [E.ON UK PLC
          incorporated with limited liability in England and Wales](2)

                       [Temporary] [Permanent] Global Note

                 [unconditionally and irrevocably guaranteed by

                                  E.ON AG](2)

                                  representing

                    [CURRENCY AND PRINCIPAL AMOUNT OF ISSUE]
                                    NOTES due
                               [YEAR OF MATURITY]

This certificate constitutes a [Temporary] [Permanent] Global Note with respect
to a duly authorised issue of [CURRENCY AND PRINCIPAL AMOUNT OF ISSUE] Notes due
[YEAR OF MATURITY] (the "NOTES") of [E.ON AG] [E.ON International Finance B.V.]
[E.ON UK plc] (the "ISSUER"). References herein to the "CONDITIONS" shall be to
the [IN THE CASE OF LONG-FORM CONDITIONS: Terms and Conditions of the Notes as
completed, modified, supplemented or replaced by the pricing supplement relating
to the Notes (the "PRICING SUPPLEMENT"), both as annexed hereto] [IN THE CASE OF
INTEGRATED CONDITIONS: Terms and Conditions of the Notes as annexed hereto]. The
Conditions form part of this

---------------------
(1)      This legend is not required in case of Notes with a maturity of one
         year or less.
(2)      Delete as applicable

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 45 -

[Temporary] [Permanent] Global Note. Expressions defined in the Conditions shall
bear the same meanings when used in this [Temporary] [Permanent] Global Note.

The Issuer agrees to pay to the bearer hereof the amounts payable with respect
to the Notes represented by this [Temporary] [Permanent] Global Note in
accordance with the Conditions.

On any redemption with respect to, or purchase and cancellation of, any of the
Notes represented by this [Temporary] [Permanent] Global Note details of such
redemption or purchase and cancellation (as the case may be) shall be entered by
or on behalf of the Issuer in Annex A hereto and the relevant space in Annex A
hereto recording any such redemption or purchase and cancellation (as the case
may be) shall be signed by or on behalf of the Issuer. Upon any such redemption
or purchase and cancellation, the nominal amount of this [Temporary] [Permanent]
Global Note shall be reduced by the nominal amount of Notes so redeemed or
purchased and cancelled. The nominal amount of this [Temporary] [Permanent]
Global Note following any such redemption or purchase and cancellation as
aforesaid shall be the nominal amount most recently entered in the relevant
column in Part I or II of Annex A hereto.

[This Global Note shall be exchanged in accordance with Section 1 of the
Conditions. On an entire exchange of this Global Note, this Global Note shall be
surrendered to the Fiscal Agent.](3)

This [Temporary] [Permanent] Global Note is governed by, and shall be construed
in accordance with, German law.

This [Temporary] [Permanent] Global Note shall not be valid unless authenticated
by or on behalf of the Fiscal Agent.

[Dusseldorf] [Amsterdam] [London], [Date]

[E.ON AG] [E.ON INTERNATIONAL FINANCE B.V.] [E.ON UK PLC]

-----------------------             -----------------------
AUTHORISED SIGNATORY                AUTHORISED SIGNATORY

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 46 -

Control signature

on -

---------------------
AUTHORISED SIGNATORY

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 47 -

[IN THE CASE OF LONG-FORM CONDITIONS:
The Terms and Conditions of the Notes and the Pricing Supplement are to be added
by attachment hereafter.]

[IN THE CASE OF INTEGRATED CONDITIONS: The Conditions are to be added by
attachment hereafter.]

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 48 -

                                     ANNEX A

                                     Part I
                                   Redemptions

Date of re-     Total nominal     Nominal       Remaining        Confirmation of
demption        amount of this    amount re-    nominal          redemption by
                Global Note to    deemed        amount of this   or on behalf of
                be redeemed                     Global Note      the Issuer
                                                following such
                                                redemption

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

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 49 -

                                     Part II
                           Purchases and Cancellations

Date of purchase   Part of nominal    Remaining nominal     Confirmation of
and cancellation   amount of this     amount of this        purchase and can-
                   Global Note pur-   Global Note follow-   cellation by or on
                   chased and can-    ing such purchase     behalf of the Issuer
                   celled             and cancellation

--------------------------------------------------------------------------------
<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 50 -

[IN THE CASE OF TEFRA D GLOBAL NOTES THE FOLLOWING FORM WILL BE ATTACHED TO THE
TEMPORARY GLOBAL NOTE:

                                     ANNEX B

                                    EXCHANGES
<TABLE>
<CAPTION>
Date                Principal amount exchanged for      Remaining principal amount           Notation made on
                    Permanent Global Note(s)            following such exchange              behalf of the Issuer

<S>                 <C>                                 <C>                                  <C>

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

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

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

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

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

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

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

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

------------------  ----------------------------------  -----------------------------------  ---------------------
</TABLE>

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 51 -

[IN THE CASE OF TEFRA D GLOBAL NOTES, THE FOLLOWING FORMS OF CERTIFICATION (OR
SUCH OTHER FORM AS SHALL CUSTOMARILY BE USED) WILL BE ATTACHED TO THE TEMPORARY
GLOBAL NOTE.]

                                    EXHIBIT I

   [INSERT CERTIFICATE TO BE GIVEN IN RELATION TO EXCHANGES OF THIS TEMPORARY
      GLOBAL NOTE FOR THE PERMANENT GLOBAL NOTE OR DEFINITIVE NOTES - SEE
          EXHIBIT I (ANLAGE I) TO GERMAN LANGUAGE FORM OF GLOBAL NOTE]

                                   EXHIBIT II

[INSERT CERTIFICATE TO BE GIVEN IN RELATION TO PAYMENTS OF INTEREST FALLING DUE
            BEFORE THE EXCHANGE DATE - SEE EXHIBIT II (ANLAGE II) TO
                      GERMAN LANGUAGE FORM OF GLOBAL NOTE]

                                   EXHIBIT III

      [INSERT ACCOUNT HOLDER'S CERTIFICATION REFERRED TO IN THE PRECEDING
     CERTIFICATES - SEE EXHIBIT III (ANLAGE III) TO GERMAN LANGUAGE FORM OF
                                  GLOBAL NOTE]

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 52 -

                                   SCHEDULE 2
                                     PART I

                     German language form of Collective Note
       -------------------------------------------------------------------

Kupontag                                                                   WKN o
                                                                          ISIN o

         [BEZEICHNUNG DER SCHULDVERSCHREIBUNGEN] fallig [FALLIGKEITSTAG]

                                       der
                                    [E.ON AG,
                     Dusseldorf, Bundesrepublik Deutschland]

                        [E.ON INTERNATIONAL FINANCE B.V.,
                            Amsterdam, Niederlande],

                                  [E.ON UK PLC,
           eingetragen mit beschrankter Haftung in England und Wales]

[FESTGELEGTE WAHRUNG] o                                                Nr. o - o
                                                                       Nr. o - o
                                                                       Nr. o - o
                        Inhaber-Sammelschuldverschreibung
                                      uber
                        o Schuldverschreibungen zu je [ ]
                      und o Schuldverschreibungen zu je [ ]
                      und o Schuldverschreibungen zu je [ ]

                           im Gesamtnennbetrag von [ ]
      der [BESCHREIBUNG DER SCHULDVERSCHREIBUNGEN] im Gesammtnennbetrag von
                          [GESAMTNENNBETRAG EINFUGEN]

                                  eingeteilt in
                         o Schuldverschreibungen zu je o
                                   Nr. o - o,
                         o Schuldverschreibungen zu je o
                                   Nr. o - o,
                            o Schuldverschreibungen o
                                   Nr. o - o,

[E.ON AG] [E.ON International Finance B.V.] [E.ON UK plc] schuldet dem Inhaber
dieser Sammelschuldverschreibung

                 [GESAMTBETRAG DER SAMMELGLOBALURKUNDE EINFUGEN]

Die Emittentin verpflichtet sich, dem Inhaber dieser Sammelschuldverschreibung
die auf diese Sammelschuldverschreibung zahlbaren Betrage gemass den fur
diese

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 53 -

Schuldverschreibungen geltenden und dieser Urkunde beigefugten "BEDINGUNGEN" zu
zahlen.

[Dusseldorf] [Amsterdam] [London], am [Datum]

[E.ON AG]
[E.ON INTERNATIONAL FINANCE B.V.]
[E.ON UK PLC]

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

Kontrollunterschrift

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

[Any United States person (as defined in the United States internal revenue
code) who holds this obligation will be subject to limitations under the United
States income tax laws including the limitations provided in sections 165(j) and
1287(a) of the Internal Revenue Code.]*

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

*        Dieser Absatz ist entbehrlich, wenn die Schuldverschreibungen eine
         ursprungliche Laufzeit von einem Jahr oder weniger haben.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 54 -

                      German language form of Global Coupon
  -----------------------------------------------------------------------------

1.   Inhaber-Sammelzinsschein zur Inhaber-               Sammelzinsschein 1
     Sammelschuldverschreibung uber [   ] der            Nr. o - o
     [Beschreibung der Schuldverschreibungen]            [Nr. o - o]
     zahlbar mit [   ] am [FALLIGKEITSTAG] [o]           [Nr. o - o]
     bei den gemass den Anleihebedingungen
     festgelegten Zahlstellen. Im Falle des
     Abhandenkommens oder der Vernichtung von            - WKN o
     Zinsscheinen ist ein Anspruch gemass                - ISIN o
     Section 804 Absatz 1 Satz 1 BGB                     [FESTGELEGTE WAHRUNG] o
     ausgeschlossen.                                     Datum, [o]

[Dusseldorf] [Amsterdam] [London], den [Datum]

[E.ON AG]
[E.ON INTERNATIONAL FINANCE B.V.]
[E.ON UK PLC]

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

[Any United States person who holds this obligation will be subject to
limitations under the United States income tax laws including the limitations
provided in sections 165(j) and 1287(a) of the Internal Revenue Code.]*

--------------------
*        Dieser Absatz ist entbehrlich, wenn die Schuldverschreibung eine
         ursprungliche Laufzeit von einem Jahr oder weniger hat.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 55 -

                                   SCHEDULE 2
                                     PART II

                            English language form of
                                 Collective Note
                              [Not to be executed]
  ----------------------------------------------------------------------------

[Coupon date]                                                              WKN o
                                                                          ISIN o

                      [TITLE OF NOTES] due [MATURITY DATE]

                                       of

                                    [E.ON AG,
         with statutory seat at Dusseldorf, Federal Republic of Germany]

                        [E.ON INTERNATIONAL FINANCE B.V.,
               with statutory seat at Amsterdam, The Netherlands],

                                  [E.ON UK PLC,
            incorporated with limited liability in England and Wales]

[SPECIFIED CURRENCY] o                                                 No. o - o
                                                                       No. o - o
                                                                       No. o - o

                               GLOBAL BEARER NOTE
                                       for

                               o Notes of [ ] each
                             and o Notes of [ ] each
                             and o Notes of [ ] each
                       in the total nominal amount of [ ]

of the [DESCRIPTION OF NOTES] in the aggregate principal amount of [INSERT
AGGREGATE PRINCIPAL AMOUNT]

                                  divided into

                                o Notes of o each
                                   Nos. o - o,
                                o Notes of o each
                                   Nos. o - o,
                                  o Notes of o
                                   Nos. o - o,

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 56 -

[E.ON AG] [E.ON International Finance B.V.] [E.ON UK plc] owes the bearer hereof
[insert aggregate amount of the Collective Note]

The Issuer agrees to pay to the bearer hereof the amounts payable with respect
to this Global Bearer Note in accordance with the "TERMS AND CONDITIONS"
applicable to the Notes and attached hereto.

[Dusseldorf] [Amsterdam] [London], on [Date]

[E.ON AG]
[E.ON INTERNATIONAL FINANCE B.V.]
[E.ON UK PLC]

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

Control Signature

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

[Any United States person who holds this obligation will be subject to
limitations under the United States income tax laws, including the limitations
provided in sections 165(j) and 1287(a) of the Internal Revenue Code.]*

------------------
*        This legend is not required if the Notes have an initial maturity of
         one year or less.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 57 -

                     English language form of Global Coupon
   ---------------------------------------------------------------------------
<TABLE>
<S>                                                                                <C>
1.  Global Bearer Coupon attached to the Global Bearer Note for [    ] of the      Coupon No. 1
    [DESCRIPTION OF NOTES] of [MATURITY DATE] payable on [INTEREST PAYMENT DATE]   No. o - o
    [o] in the amount of [ ] at the paying agents determined in accordance with    [No. o - o]
    the Terms and Conditions of the Notes. In the case of loss or destruction of   [No. o - o]
    coupons, any right according to Section 804(1), sentence 1, of the BGB
    (German Civil Code) is excluded.
                                                                                   WKN o
                                                                                   ISIN o
                                                                                   [SPECIFIED
                                                                                   CURRENCY] o
                                                                                   Date, [o]

</TABLE>

[Dusseldorf] [Amsterdam] [London], [Date]

[E.ON AG]
[E.ON INTERNATIONAL FINANCE B.V.]
[E.ON UK PLC]

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

[Any United States person who holds this obligation will be subject to
limitations under the United States income tax laws, including the limitations
provided in sections 165(j) and 1287(a) of the Internal Revenue Code.]*

-----------------------
*        This legend is not required if the Notes have an initial maturity of
         one year or less.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 58 -

                                   SCHEDULE 3
                                     PART I

                     German language form of Definitive Note
      -------------------------------------------------------------------

                                  Serien Nr. o

Common Code Nr. o                                                          WKN o
ISIN Nr. o                                   [Sonstige Wertpapier-Kenn-Nummer o]

Stuckelung: o

[Any United States person who holds this obligation will be subject to
limitations under the United States income tax laws including the limitations
provided in sections 165(j) and 1287(a) of the Internal Revenue Code.](1)

[Ausser bei Transaktionen zwischen naturlichen Personen, die nicht der
Ausubung eines Geschaftes oder einer beruflichen Tatigkeit dienen, ist jede
Transaktion dieser Schuldverschreibung, die mit der Auslieferung effektiver
Stucke innerhalb, von oder in die Niederlande verbunden ist, durch die
Vermittlung der Emittentin oder einer Institution, die an der Euronext Amsterdam
N.V. zugelassenen ist (an einem oder mehreren Markten oder Systemen, die von
Euronext Amsterdam N.V. (toegelaten instelling) gehalten oder betrieben werden)
auszufuhren und auf einem Orderzettel, den Namen und die Adresse jeder der an
der Transaktion beteiligten Parteien, die Art der Transaktion sowie die
Einzelheiten und Seriennummer dieser Schuldverschreibung zu dokumentieren.](2)

                                    [E.ON AG
                   Dusseldorf, Bundesrepublik Deutschland](3)

                        [E.ON INTERNATIONAL FINANCE B.V.
                            Amsterdam, Niederlande](3)

                                  [E.ON UK PLC
          eingetragen mit beschrankter Haftung in England und Wales](3)

            [unter der unbedingten und unwiderruflichen Garantie der

                                   E.ON AG](3)

                           INHABER-SCHULDVERSCHREIBUNG

-----------------------
(1)      Dieser Absatz ist entbehrlich, wenn die Schuldverschreibung eine
         ursprungliche Laufzeit von einem Jahr oder weniger hat.
<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 59 -

                                      uber

                [WAHRUNG UND NENNBETRAG DER SCHULDVERSCHREIBUNG]

                                der Emission von

                      [WAHRUNG UND NENNBETRAG DER EMISSION]

                          Schuldverschreibungen fallig

                                [FALLIGKEITSJAHR]

Diese Urkunde ist eine Inhaberteilschuldverschreibung uber [WAHRUNG UND
STUCKELUNG] einer ordnungsgemass genehmigten Emission von Schuldverschreibungen
der [E.ON AG] [E.ON International Finance B.V.] [E.ON UK plc] (die
"EMITTENTIN"). Bezugnahmen in dieser Urkunde auf die "BEDINGUNGEN" verstehen
sich auf die [IM FALLE NICHT-KONSOLIDIERTER BEDINGUNGEN: Emissionsbedingungen in
der durch das Konditionenblatt (das "KONDITIONENBLATT") vervollstandigten,
geanderten, erganzten oder ersetzten Form. Die Emissionsbedingungen und das
Konditionenblatt sind auf der Ruckseite dieser Urkunde wiedergegeben] [IM FALLE
KONSOLIDIERTER BEDINGUNGEN: Bedingungen, die auf der Ruckseite dieser Urkunde
wiedergegeben sind]. Die Bedingungen sind Teil dieser Urkunde. Die in den
Bedingungen definierten Begriffe haben, soweit hierin verwendet, in dieser
Urkunde die gleiche Bedeutung.

Die Emittentin verpflichtet sich, dem Inhaber dieser Schuldverschreibung die auf
diese Schuldverschreibung zahlbaren Betrage gemass den Bedingungen zu zahlen.

Diese Schuldverschreibung unterliegt deutschem Recht.

Diese Schuldverschreibung ist nur gultig, wenn sie die Kontrollunterschrift der
Emissionsstelle oder ihres Beauftragten tragt.

[Dusseldorf] [Amsterdam] [London], [Datum]

[E.ON AG]
[E.ON INTERNATIONAL FINANCE B.V.]
[E.ON UK PLC]

-------------------------  -------------------------
UNTERSCHRIFTSBERECHTIGTER  UNTERSCHRIFTSBERECHTIGTER

Kontrollunterschrift

------------------------
UNTERSCHRIFTSBERECHTIGTER

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 60 -

                                   SCHEDULE 3
                                     Part I

                    English language form of Definitive Note
       -------------------------------------------------------------------

                                  Series No. o

Common Code No. o                                                          WKN o
ISIN No. o                                 [Other Security Identification No. o]

                                 Denomination: o

[Any United States person who holds this obligation will be subject to
limitations under the United States income tax laws including the limitations
provided in sections 165(j)) and 1287(a) of the Internal Revenue Code.](1)

[Unless between individuals not acting in the conduct of a business or
profession, each transaction regarding this Note which involves the physical
delivery thereof within, from or into The Netherlands, must be effected through
the mediation of the Issuer or an admitted institution of Euronext Amsterdam
N.V. admitted in a function on one or more markets or systems held or operated
by Euronext Amsterdam N.V. (toegelaten instelling), and must be recorded in a
transaction note which includes the name and address of each party to the
transaction, the nature of the transaction and the details and serial number of
this Note.](2)

                                    [E.ON AG
       with statutory seat at Dusseldorf, Federal Republic of Germany](3)

                        [E.ON INTERNATIONAL FINANCE B.V.
              with statutory seat at Amsterdam, The Netherlands](3)

                                  [E.ON UK PLC
          incorporated with limited liability in England and Wales](3)

                 [unconditionally and irrevocably guaranteed by

                                   E.ON AG](3)

                                 DEFINITIVE NOTE

                                  representing

------------------------
(1)      This legend is not required in case of Notes with a maturity of one
         year or less.
(3)      Delete as applicable.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 61 -

                     [CURRENCY AND PRINCIPAL AMOUNT OF NOTE]

                                 of the Issue of

                    [CURRENCY AND PRINCIPAL AMOUNT OF ISSUE]

                                    NOTES Due

                               [YEAR OF MATURITY]

This Note is a [CURRENCY AND DENOMINATION] definitive Note with respect to a
duly authorised issue of Notes of [E.ON AG] [E.ON International Finance B.V.]
[E.ON UK plc] (the "ISSUER"). References herein to the "CONDITIONS" shall be to
the [IN THE CASE OF LONG-FORM CONDITIONS: Terms and Conditions of the Notes as
completed, modified and supplemented or replaced by the pricing supplement (the
"PRICING SUPPLEMENT") both endorsed hereon] [IN THE CASE OF INTEGRATED
CONDITIONS: Terms and Conditions of the Notes as endorsed hereon]. The
Conditions form part of this Note. Expressions defined in the Conditions shall
bear the same meanings when used in this Note.

The Issuer agrees to pay to the bearer hereof the amounts payable with respect
to this Note in accordance with the Conditions.

This Note is governed by, and shall be construed in accordance with, German law.

This Note shall not be valid unless authenticated by or on behalf of the Fiscal
Agent.

[Dusseldorf] [Amsterdam] [London], [Date]

[E.ON AG]
[E.ON INTERNATIONAL FINANCE B.V.]
[E.ON UK PLC]

-------------------        -------------------
AUTHORISED SIGNATORY       AUTHORISED SIGNATORY

Control signature

on o

--------------------
AUTHORISED SIGNATORY

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 62 -

                                   SCHEDULE 3
                                     PART II

                         German language form of Coupon

                         (Vorderseite des Zinsscheines)
      -------------------------------------------------------------------

                                    [E.ON AG]
                        [E.ON INTERNATIONAL FINANCE B.V.]
                                  [E.ON UK PLC]

                                  Zinsschein zu

                [WAHRUNG UND NENNBETRAG DER SCHULDVERSCHREIBUNG]

                           Inhaber-Schuldverschreibung

                                der Emission von

                      [WAHRUNG UND NENNBETRAG DER EMISSION]

                          Schuldverschreibungen fallig

                                [FALLIGKEITSJAHR]

                            Serie Nr. [............]

                                     TEIL A

[FUR FESTVERZINSLICHE SCHULDVERSCHREIBUNGEN:

Dieser Zinsschein ist an den Inhaber zahlbar,             Zinsschein uber
selbstandig ubertragbar und unterliegt den                [ ]
Bedingungen der genannten Schuldverschreibungen.          fallig am
                                                          [ ]]

                                     TEIL B

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 63 -

[FUR VARIABEL VERZINSLICHE SCHULDVERSCHREIBUNGEN:

ENTWEDER:

Zinsschein fur den gemass den Bedingungen der              Zinsschein fallig im
genannten Schuldverschreibungen falligen Betrag am Z
inszahlungstermin.                                         [ ]

Dieser Zinsschein ist an den Inhaber zahlbar, selbstandig ubertragbar und
unterliegt den Bedingungen der genannten Schuldverschreibungen, nach deren
Massgabe er vor seinem Falligkeitsdatum seine Gultigkeit verlieren kann.

ODER:

im Falle einer variabel verzinslichen Schuldverschreibung
mit festem Zinszahlungstermin:

Dieser Zinsschein ist an den Inhaber zahlbar, selbstandig         Zinsschein
ubertragbar und unterliegt den Bedingungen der genannten          fallig am
Schuldverschreibungen, nach deren Ma(beta)gabe er vor             [    ]]
seinem Falligkeitsdatum seine Gultigkeit verlieren kann.

[        ], im [        ]                                     [Pragestempel]

Gezeichnet: ___________________

[E.ON AG]
[E.ON INTERNATIONAL FINANCE B.V.]
[E.ON UK PLC]

[Any United States person who holds this obligation will be subject to
limitations under the United States income tax laws including the limitations
provided in sections 165(j) and 1287(a) of the Internal Revenue Code.](1)

--------------------------
(1)      Dieser Absatz ist entbehrlich, wenn die Schuldverschreibung eine
         ursprungliche Laufzeit von einem Jahr oder weniger hat.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 64 -

                          (Ruckseite des Zinsscheines)
      -------------------------------------------------------------------

                                 EMISSIONSSTELLE

                                 Citibank, N.A.
                               5, Carmelite Street
                                 London EC4Y 0PA

                                   ZAHLSTELLEN

                            Banque de Luxembourg S.A.
                               14, Boulevard Royal
                                 2449 Luxembourg

                                 Citibank, N.A.
                               5, Carmelite Street
                                 London EC4Y 0PA

                                   Citibank AG
                             Neue Mainzer Strasse 75
                             60311 Frankfurt am Main

und/oder die andere oder kunftige Emissionsstelle und andere oder weitere
Zahlstellen und/oder bezeichnete Geschaftsstellen, die etwa von Zeit zu Zeit
ordnungsgemass durch die Emittentin bestellt und den Inhabern der
Schuldverschreibungen bekanntgegeben sind.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 65 -

                                   SCHEDULE 3
                                     Part II

                         English language form of Coupon

                                (Face of Coupon)
       -------------------------------------------------------------------

                                    [E.ON AG]
                        [E.ON INTERNATIONAL FINANCE B.V.]
                                  [E.ON UK PLC]

                             Coupon appertaining to

                     [CURRENCY AND PRINCIPAL AMOUNT OF NOTE]

                                 Definitive Note

                                 of the Issue of

                    [CURRENCY AND PRINCIPAL AMOUNT OF ISSUE]

                                    Notes Due

                               [YEAR OF MATURITY]

                                  Series No.[ ]

                                     PART A

[FOR FIXED RATE NOTES:

This Coupon is payable to bearer, separately negotiable          Coupon for
and subject to the Terms and Conditions of the said Notes.       [  ]

                                                                 due on
                                                                 [  ]]

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 66 -

                                     PART B
[FOR FLOATING RATE NOTES:

EITHER:

Coupon for the amount due in accordance with the            Coupon due
Terms and Conditions of the said Notes on the               in [    ]
Interest Payment Date.

This Coupon is payable to bearer, separately negotiable and subject to the Terms
and Conditions of the said Notes under which it may become void before its due
date.

OR, in the case of a Floating Rate Note with fixed Interest Payment Dates:

This Coupon is payable to bearer, separately negotiable         Coupon
and subject to the Terms and Conditions of the said
Notes under which it may become void before its due date.       due on
                                                                [  ]]

[         ], in [    ]                                            [Seal]

[E.ON AG]
[E.ON INTERNATIONAL FINANCE B.V.]
[E.ON UK PLC]

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

[Any United States person who holds this obligation will be subject to
limitations under the United States tax laws including the limitations provided
in sections 165(j) and 1287(a) of the Internal Revenue Code.](1)

-------------------------
(1)      This legend is not required in case of Notes with a maturity of one
         year or less.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 67 -

                               (Reverse of Coupon)
      -------------------------------------------------------------------

                                  FISCAL AGENT

                                 Citibank, N.A.
                               5, Carmelite Street
                                 London EC4Y 0PA

                                  PAYING AGENTS

                            Banque de Luxembourg S.A.
                               14, Boulevard Royal
                                 2449 Luxembourg

                                 Citibank, N.A.
                               5, Carmelite Street
                                 London EC4Y 0PA

                                   Citibank AG
                             Neue Mainzer Strasse 75
                             60311 Frankfurt am Main

and/or such other or future Fiscal Agent and other or further Paying Agents
and/or specified offices as may from time to time be duly appointed by the
Issuer and notice of which has been given to the Holders.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 68 -

                                   SCHEDULE 3

                                    PART III

                         German language form of Receipt
      -------------------------------------------------------------------

                                    [E.ON AG]
                        [E.ON INTERNATIONAL FINANCE B.V.]
                                  [E.ON UK PLC]

                [BETRAG UND BEZEICHNUNG DER SCHULDVERSCHREIBUNG]

Serien Nr. [ ]
Fortlaufende Nummer der Schuldverschreibung: [ ]
Tranche Nr. [ ]

Quittungsformular uber die Summe von [ ] in Hohe der Teilzahlung des zahlbaren
Kapitals nach Massgabe der auf der Ruckseite der Schuldverschreibung
wiedergegebenen Bedingungen, zu der dieses Quittungsformular am [ ] gehort.

Dieses Quittungsformular ist vorbehaltlich der und in Ubereinstimmung mit den
auf diese Schuldverschreibung, zu der dieses Quittungsformular gehort,
anwendbaren Bedingungen ausgegeben, die fur den Inhaber dieses
Quittungsformulars verbindlich sind, ungeachtet dessen, ob es jeweils dieser
Schuldverschreibung beigefugt ist.

Dieses Quittungsformular ist zusammen mit der Schuldverschreibung, zu der es
gehort, gemass den Bedingungen zur Zahlung vorzulegen.

Dieses Quittungsformular ist kein Eigentumsnachweis und auch unter keinen
Umstanden als ein solcher anzusehen. Falls es von der Schuldverschreibung, zu
der es gehort, getrennt wird, stellt es keine Verpflichtung der Emittentin dar.
Dementsprechend berechtigt die Vorlage dieser Schuldverschreibung ohne dieses
Quittungsformular oder die Vorlage dieses Quittungsformulars ohne diese
Schuldverschreibung den Inhaber nicht zum Erhalt einer Zahlung in bezug auf die
betreffende Teilzahlung an Kapital.

Falls die Schuldverschreibung, zu der dieses Quittungsformular gehort, vor dem
Falligkeitstermin der Teilzahlung an Kapital, auf die sich dieses
Quittungsformular bezieht, fallig und zahlbar wird, wird dieses
Quittungsformular ungultig, und es erfolgt darauf keine Zahlung mehr.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 69 -

                                   SCHEDULE 3
                                    PART III

                        English language form of Receipt
       -------------------------------------------------------------------

                                    [E.ON AG]
                        [E.ON INTERNATIONAL FINANCE B.V.]
                                  [E.ON UK PLC]

                           [AMOUNT AND TITLE OF NOTE]

Series No: [  ]
Serial Number of Instrument: [  ]
Tranche No: [  ]

Receipt for the sum of [ ] being the instalment of principal payable in
accordance with the Terms and Conditions endorsed on the Note to which this
Receipt appertains on [ ].

This Receipt is issued to and in accordance with the Terms and Conditions
applicable to the Note to which this Receipt appertains which shall be binding
on the Holder of this Receipt whether or not it is for the time being attached
to such Note.

This Receipt must be presented for payment together with the Note to which it
appertains in accordance with the Terms and Conditions.

This Receipt is not and shall not in any circumstances be deemed to be a
document of title. If separated from the Note to which it appertains it will not
represent any obligation of the Issuer. Accordingly, the presentation of such
Note without this Receipt or the presentation of this Receipt without such Note
will not entitle the Holder to any payment with respect to the relevant
instalment of principal.

If the Note to which this Receipt appertains shall have become due and payable
before the due date for payment of the instalment of principal relating to this
Receipt, this Receipt shall become void and no payment shall be made with
respect to it.

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 70 -

                                   SCHEDULE 4

                          [ON LETTERHEAD OF THE ISSUER]

                      CALCULATION AGENT APPOINTMENT LETTER
               [for use if the Calculation Agent is not a Dealer]

                                                                          [DATE]

[NAME OF CALCULATION AGENT]
[ADDRESS]

[E.ON AG]
[E.ON INTERNATIONAL FINANCE B.V.]
[E.ON UK PLC]
EURO 20,000,000,000 MEDIUM TERM NOTE PROGRAMME

Dear Sirs,

We refer to the Amended and Restated Agency Agreement dated 21 August 2002
entered into with respect to the above Medium Term Note Programme (such
agreement, as modified or amended from time to time, the "AGENCY AGREEMENT")
between [E.ON AG] [E.ON International Finance B.V.] [E.ON UK plc] and Citibank,
N.A., as fiscal agent and certain other financial institutions named therein, a
copy of which has been supplied to you by us.

Expressions defined in the Agency Agreement shall have the same meanings when
used herein.

[IF A THIRD PARTY IS APPOINTED FOR ONE SERIES OF NOTES ONLY, INSERT: We hereby
appoint you as Calculation Agent at your specified office detailed in the
Confirmation as our agent in relation to [SPECIFY RELEVANT SERIES OF NOTES] (the
"NOTES") upon the terms of the Agency Agreement for the purposes specified in
the Agency Agreement and in the Terms and Conditions and all matters incidental
thereto.]

[IF A THIRD PARTY IS APPOINTED FOR MORE THAN ONE SERIES OF NOTES, INSERT: We
hereby appoint you as Calculation Agent at your specified office detailed in the
Confirmation set out below as our agent in relation to each Series of Notes with
respect to which you are named as Calculation Agent in the relevant Pricing
Supplement upon the terms of the Agency Agreement and (in relation to each such
Series of Notes) in the Terms and Conditions and all matters incidental
thereto.]

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 71 -

[We hereby agree that, notwithstanding the provisions of the Agency Agreement or
the Terms and Conditions, your appointment as Calculation Agent may only be
revoked in accordance with the terms and conditions thereof if you have been
negligent in the exercise of your obligations thereunder or have failed to
exercise or perform your obligations thereunder].

Please complete and return to us the Confirmation on the copy of this letter
duly signed by an authorised signatory confirming your acceptance of this
appointment.

This letter is governed by, and construed in accordance with, German law and the
provisions of Clause 20 and 21 of the Agency Agreement shall apply to this
letter as if set out herein in full.

Yours faithfully

[NAME OF ISSUER]

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 72 -

                                  CONFIRMATION

[IF A THIRD PARTY IS APPOINTED FOR ONE SERIES OF NOTES ONLY, INSERT: We hereby
accept our appointment as Calculation Agent of the Issuer in relation to the
Notes, and shall perform all matters expressed to be performed by the
Calculation Agent in, and shall otherwise comply with, the Terms and Conditions
and the provisions of the Agency Agreement and, in connection therewith, shall
take all such action as may be incidental thereto.]

[IF A THIRD PARTY IS APPOINTED FOR MORE THAN ONE SERIES OF NOTES, INSERT: We
hereby accept our appointment as Calculation Agent of the Issuer in relation to
each Series of Notes with respect to which we are named as Calculation Agent in
the relevant Pricing Supplement, and shall perform all matters expressed to be
performed by the Calculation Agent in, and shall otherwise comply with (in
relation to each such Series of Notes) the Terms and Conditions and the
provisions of the Agency Agreement and, in connection therewith, shall take all
such action as may be incidental thereto.]

For the purposes of [the Notes] [each such Series of Notes] and the Agency
Agreement our specified office and communication details are as follows:

         Address:          [  ]

         Fax:              [  ]
         Attention:        [  ]

[CALCULATION AGENT]

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

Date:

[      ]

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

<PAGE>
                                    Amended and Restated Fiscal Agency Agreement

                                     - 73 -

                                   SCHEDULE 5

           The Specified Offices of the Fiscal Agent and Paying Agent

                                  FISCAL AGENT

                                 Citibank, N.A.
                               5, Carmelite Street
                                 London EC4Y 0PA

                                  PAYING AGENT

                            Banque de Luxembourg S.A.
                               14, Boulevard Royal
                                 2449 Luxembourg

                                 Citibank, N.A.
                               5, Carmelite Street
                                 London EC4Y 0PA

                                   Citibank AG
                             Neue Mainzer Strasse 75
                             60311 Frankfurt am Main<PAGE>
                                                                    EXHIBIT 10.5

                               KAYDON CORPORATION
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                            AS AMENDED AND RESTATED

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
ARTICLE                                                                         PAGE
-------                                                                         ----
<S>           <C>                                                               <C>
I             Establishment ..................................................   1
              1.1       Effective Date .......................................   1
              1.2       Intent ...............................................   1
              1.3       Trust ................................................   1

II            Definitions ....................................................   2
              2.1       Accrued Benefit ......................................   2
              2.2       Active Participant ...................................   2
              2.3       Actuarial Equivalent .................................   3
              2.4       Average Monthly Compensation .........................   3
              2.5       Board of Directors ...................................   3
              2.6       Compensation .........................................   3
              2.7       Committee ............................................   3
              2.8       Covered Compensation .................................   3
              2.9       Disability ...........................................   4
              2.10      Disability Retirement Eligibility ....................   4
              2.11      Early Disability Retirement Eligibility ..............   4
              2.12      Early Retirement Eligibility .........................   4
              2.13      Employer .............................................   5
              2.14      Normal Retirement Eligibility ........................   5
              2.15      Plan Year ............................................   5
              2.16      Vested Retirement Eligibility ........................   5
              2.17      Year of Credited Service .............................   5
              2.18      Year of Vesting Service ..............................   7

III           Benefits .......................................................   8
              3.1       Normal Retirement Benefit ............................   8
              3.2       Early Retirement Benefit .............................   8
              3.3       Vested Retirement Benefit ............................   8
              3.4       Disability Benefit ...................................   9
              3.5       Death Benefit ........................................  10
              3.6       Benefit Limitations ..................................  11
              3.7       Special Transfer Employee Rule .......................  13
              3.8       Change in Control Override ...........................  14

IV            Distribution ...................................................  15
              4.1       Time and Method of Payment ...........................  15
              4.2       Change of Circumstances ..............................  16
              4.3       Designation of Beneficiary ...........................  16
              4.4       Claims Procedure .....................................  16
              4.5       Facility of Payment ..................................  18
              4.6       Offset ...............................................  18
              4.7       Distribution in the Event of Taxation ................  18
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>           <C>                                                               <C>
V             Administration .................................................  20
              5.1       Committee ............................................  20
              5.2       Limitation of Liability and Indemnification ..........  21

VI            Amendment and Termination of Plan ..............................  22
              6.1       Amendment or Termination .............................  22
              6.2       Change in Control Agreement ..........................  23

VII          Miscellaneous ...................................................  24
             7.1        Nonassignability .....................................  24
             7.2        Employment Rights Not Enlarged .......................  24
             7.3        Participants' Rights Limited .........................  24
             7.4        Interpretation and Construction ......................  24
             7.5        Governing Law ........................................  25
             7.6        Arbitration ..........................................  25
</TABLE>

Appendix A
Appendix B
Appendix C
Appendix D

                                      -ii-

<PAGE>

                               KAYDON CORPORATION
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

         Kaydon Corporation and certain of its related entities identified in
Appendix A (individually, an Employer, or collectively, the Employers) amend and
restate the Kaydon Corporation Supplemental Executive Retirement Plan (the Plan)
effective August 1, 1998.

                                    ARTICLE I
                                 ESTABLISHMENT

         1.1 EFFECTIVE DATE. This Plan was generally effective as of January 1,
1994 as to Kaydon Corporation and January 1, 1997 as to the other Employer or
Employers. The Plan was amended and restated in 1997 and is now further amended
and restated, in both cases to reflect amendments adopted by the Board November
7,1996.

         1.2 INTENT. The Plan is intended to be an unfunded deferred
compensation arrangement for purposes of the Internal Revenue Code of 1986, as
amended (the Code) and for purposes of Title I of the Employee Retirement Income
Security Act of 1974, as amended (ERISA).

         (a) ERISA EXEMPTION. The Plan is provided for the benefit of a select
group of management employees, is intended to result in taxation to participants
only when amounts are actually received under this Plan and is intended to be
exempt from the participation, funding, vesting and fiduciary requirements of
ERISA.

         (b) UNFUNDED. The Plan constitutes only a promise by each Employer to
make benefit payments in the future. Participants have the status of general
unsecured creditors of their Employer.

         1.3 TRUST. Any trust created by an Employer and any assets held by the
trust to assist the Employer in meeting its obligations under this Plan will
conform, in general form, to the terms of the model trust described in Rev.
Proc. 92-64 as modified from time to time.

                                      -1-
<PAGE>

                                   ARTICLE II
                                  DEFINITIONS

                  2.1 ACCRUED BENEFIT. A participant's Accrued Benefit is the
Retirement Benefit earned to date under the Basic form (as defined in the Kaydon
Corporation Retirement Plan) taking into account the offset of the participant's
benefit under the Kaydon Corporation Retirement Plan from time to time.

         (a) CALCULATION. The Accrued Benefit is based on the Average Monthly
Compensation, Years of Vesting Service, Years of Credited Service (to a maximum
of 30) the benefit formula and the remaining Plan provisions in effect at the
earlier of termination of employment, cessation of Active Participation, or
other earlier computation date and, for purposes of determining the benefit
under the Kaydon Corporation Retirement Plan, the terms of that Plan in effect
from time to time.

         (b) REDUCTION. The Accrued Benefit of a participant who receives
payment of any benefits under the Plan is reduced by the Actuarial Equivalent of
the payments.

         2.2 ACTIVE PARTICIPANT. An Active Participant is an employee of Kaydon
Corporation or a wholly owned subsidiary of Kaydon Corporation which has adopted
this Plan who has been designated by the Board of Directors or by the
Compensation Committee of the Board of Directors as eligible to begin accruing
benefits under this Plan and is identified in Appendix B.

         (a) CESSATION OF ACTIVE PARTICIPATION. An employee who becomes an
Active Participant remains an Active Participant until the earlier of the date
the employee is no longer actively employed in that manner and the date the
employee is removed from this Plan by the Board of Directors or the Compensation
Committee.

         (b) PARTICIPATION. An individual who is or was an Active Participant
remains a participant until no further amounts are payable to the individual
under this Plan.

                                      -2-
<PAGE>

         2.3 ACTUARIAL EQUIVALENT. Actuarial Equivalence is determined under the
assumptions and methods set forth in Appendix D.

         2.4 AVERAGE MONTHLY COMPENSATION. Average Monthly Compensation is the
participant's Average Monthly Compensation determined under the Kaydon
Corporation Retirement Plan, calculated at the earlier of termination of
employment, cessation of Active Participation, or other earlier computation date
using the definition of Compensation contained in this Plan.

         2.5 BOARD OF DIRECTORS. The Board of Directors is the Board of
Directors of Kaydon Corporation.

         2.6 COMPENSATION. Compensation is Compensation as provided in the
Kaydon Corporation Retirement Plan, except that Compensation is determined
without application of the Code Section 401(a)(17) Dollar Limit and the
Compensation Dollar Limit of the Kaydon Corporation Retirement Plan.

         2.7 COMMITTEE. The Committee consists of one or more persons appointed
by the Board of Directors of Kaydon Corporation. In the absence of a specially
appointed Committee, the Board of Directors of Kaydon Corporation or the
Compensation Committee of the Board of Directors has the responsibilities of the
Committee provided in this Plan. Any members of the Committee who are employees
may not receive compensation for their services to the Committee.

         2.8 COVERED COMPENSATION. Covered Compensation is Covered Compensation
as provided in the Kaydon Corporation Retirement Plan.

                                      -3-
<PAGE>

         2.9 DISABILITY. Disability is any physical or mental condition which
causes the individual to cease active work with the Employer, is reasonably
expected to be permanent, and is approved by the Board of Directors or the
Committee in its discretion, based on evidence satisfactory to it. Receipt of
permanent and total disability benefits under the Social Security Act, as
amended, or a finding of Disability for purposes of the Kaydon Corporation
Retirement Plan may be considered by the Board or the Committee, but are not
dispositive.

         2.10 DISABILITY RETIREMENT ELIGIBILITY. Disability Retirement
Eligibility is the later of Normal Retirement Eligibility and the first day of
the month on or following the last payment made under the Employer's long term
disability insurance program with respect to an individual who has completed ten
(10) Years of Vesting Service or ten (10) Years of Credited Service, incurred a
Disability while an Active Participant and after attaining age 55, and ceased
active work with the Employers.

         2.11 EARLY DISABILITY RETIREMENT ELIGIBILITY. Early Disability
Retirement Eligibility is the later of Early Retirement Eligibility and the
first day of the month on or following the last payment made under the
Employer's long term disability insurance program with respect to an individual
who has completed ten (10) Years of Vesting Service, incurred a Disability while
an Active Participant and after attaining age 55 and ceased active work with the
Employers.

         2.12 EARLY RETIREMENT ELIGIBILITY. Early Retirement Eligibility is the
first day of the month on or following the date an Active Participant attains
age 55, completes at least ten (10) Years of Vesting Service and ceases active
work with the Employers.

                                      -4-
<PAGE>

         2.13 EMPLOYER. Employer means Kaydon Corporation and any wholly owned
subsidiary of Kaydon Corporation which has adopted this Plan.

         2.14 NORMAL RETIREMENT ELIGIBILITY. Normal Retirement Eligibility is
the first day of the month on or following the date an Active Participant:

         (a) GENERAL RULE. Who has completed ten (10) Years of Vesting Service
or ten (10) Years of Credited Service attains age 65; or

         (b) SPECIAL RULE. Who was first employed by the Employers after age 55
attains age 65.

         2.15 PLAN YEAR. The Plan Year is an annual accounting period ending
each December 31.

         2.16 VESTED RETIREMENT ELIGIBILITY. Vested Retirement Eligibility is
the first day of the month on or following the date a participant who is no
longer an Active Participant but who has a vested interest in an Accrued Benefit
ceases active work with the Employers. The Accrued Benefit is vested upon the
earlier of:

         (a) AGE AND SERVICE. The later of attainment of age 55 while (or prior
to becoming) an Active Participant and the completion of either ten (10) Years
of Vesting Service or ten (10) Years of Credited Service; or

         (b) AGE. The attainment of age 65 while (or prior to becoming) an
Active Participant.

         2.17 YEAR OF CREDITED SERVICE. A Year of Credited Service is a Year of
Credited Service determined under the Kaydon Corporation Retirement Plan,
including service credited prior to participation in this Plan, except that:

                                      -5-
<PAGE>

         (a) ADDITIONAL CREDIT. For purposes of the Accrued Benefit once the
individual attains the Eligibility requirement below and for purposes of the
computation of the Normal Retirement, Early Retirement, Death, or Disability
Benefit under Sections 3.1, 3.2, 3.4 and 3.5(b) only (and not for purposes of
calculating the Accrued Benefit prior to the time the individual attains the
Eligibility requirement below, calculating the  Vested Retirement Benefit, or
determining eligibility for a benefit, vesting, or any other purpose), Active
Participants identified in Appendix C as potentially eligible for Additional
Credit who are described in this subsection will be credited with Years of
Credited Service as provided in this subsection in addition to the Years of
Credited Service already credited to the Participant.

                  (i) ELIGIBILITY. An individual is eligible for the additional
         credit provided in subsection (ii) if the individual attains while an
         Active Participant in this Plan Normal Retirement Eligibility,
         Disability Retirement Eligibility, Early Disability  Retirement
         Eligibility, or Early Retirement Eligibility and age 62, or dies while
         an Active Participant in this Plan with a Qualifying Spouse who is
         eligible for a benefit under Section 3.5(b).

                  (ii) AMOUNT OF CREDIT. The number of additional Years of
         Credited Service credited is equal to the Active Participant's Years of
         Credited Service actually earned under the Kaydon Corporation
         Retirement Plan or credited under Section 3.7 of this Plan (excluding,
         for example, Years of Credited Service imputed under the terms of that
         Plan or this Plan, other than in accordance with Section 3.7 of this
         Plan).

                  (iii) REMOVAL. An individual may be removed from the list of
         Active Participants identified in Appendix C as potentially eligible
         for Additional Credit at any time prior to the earlier of attainment of
         the Eligibility requirement, above, and the date which is six months
         prior to the time the provisions of Section 3.8 of this Plan have
         operated with respect to the individual. Subject to that limitation,

                                      -6-
<PAGE>

         that removal may occur in the discretion of the Board of Directors or
         the Committee.

         (b) MAXIMUM. In every case, total Years of Credited Service are limited
to 30.

         (c) LIMITATION. Years of Credited Service are not credited under this
Plan after an individual ceases to be an Active Participant in this Plan.

         2.18 YEAR OF VESTING SERVICE. A Year of Vesting Service is a Year of
Vesting Service determined under the Kaydon Corporation Retirement Plan, except
that Years of Vesting Service are not credited under this Plan after an
individual ceases to be an Active Participant in this Plan.

                                      -7-
<PAGE>

                                  ARTICLE III
                                    BENEFITS

         3.1 NORMAL RETIREMENT BENEFIT. An Active Participant who attains Normal
Retirement Eligibility is entitled to the following benefit, calculated in the
Basic Form as defined in the Kaydon Corporation Retirement Plan, payable
beginning on the first day of the month following retirement at or after
attainment of Normal Retirement Eligibility. The benefit is one percent (1%) of
Average Monthly Compensation plus fifty-eight hundredths percent (.58%) of
Average Monthly Compensation in excess of Covered Compensation, multiplied by
Years of Credited Service (to a maximum of 30 years), less the Participant's
benefit under the Kaydon Corporation Retirement Plan, calculated in the Basic
Form, payable beginning at the same date.

         3.2 EARLY RETIREMENT BENEFIT. A participant who retires after attaining
Early Retirement Eligibility is entitled to a benefit computed in the same
manner as the Normal Retirement Benefit, payable on the first day of the month
following attainment of age 65. The Committee, in its discretion, however, may
begin the payment of benefits to an Active Participant who retires after
attaining Early Retirement Eligibility prior to age 65. In that case, the
benefit is calculated by subtracting from the Actuarial Equivalent (determined
under Appendix D) of the Participant's Accrued Benefit (calculated without the
offset of the benefit under the Kaydon Corporation Retirement Plan) the
Participant's actuarially adjusted benefit under the Kaydon Corporation
Retirement Plan from time to time.

         3.3 VESTED RETIREMENT BENEFIT. A participant who retires after
attaining Vested Retirement Eligibility is entitled to the following benefit,
calculated in the Basic Form as defined in the Kaydon Corporation Retirement
Plan, payable beginning on the first day of the month following attainment of
age 65. The benefit is calculated under

                                      -8-
<PAGE>

the formula provided in Section 3.1. The Committee, in its discretion, however,
may begin the payment of benefits to a participant who terminates service and
retires after attaining Vested Retirement Eligibility. In that case, the benefit
is reduced in the same manner as an Early Retirement Benefit.

         3.4 DISABILITY BENEFIT. An Active Participant who retires due to
Disability and attains Disability Retirement Eligibility is entitled to the
individual's Accrued Benefit calculated based on the Years of Credited Service
the Participant would have completed had employment continued to Normal
Retirement Eligibility (with additional Years of Credited Service credited under
Section 2.17(a), if applicable, based only on the individual's actual Years of
Credited Service) and Average Monthly Compensation determined on the first day
of the month coincident with or next following the occurrence of the Disability.

         (a) REDUCED DISABILITY BENEFIT. The Committee, in its discretion,
however, may begin the payment of benefits to an Active Participant who retires
due to Disability prior to age 65 and attains Early Disability Retirement
Eligibility. This benefit is the actuarial equivalent of the individual's
Accrued Benefit, calculated based on the Years of Credited Service the
Participant would have completed had employment continued to the date benefits
begin (with additional Years of Credited Service credited under Section 2.17(a),
if applicable, based only on the individual's actual Years of Credited Service)
and Average Monthly Compensation determined on the first day of the month
coincident with or next following the occurrence of the Disability, reduced and
payable in the same manner as an Early Retirement Benefit.

         (b) NOTICE. A participant whose employment terminated as the result of
a permanent disability must advise the Committee within sixty (60) days should
payment of Social Security disability insurance benefits be discontinued.

                                      -9-
<PAGE>

         (c) EXAMINATION. The Committee may require any participant whose
employment terminated as the result of a permanent disability to provide
evidence the Committee considers appropriate verifying the participant's
continued eligibility for disability benefits under this Plan.

         (d) EFFECT OF DISCONTINUANCE. If the permanent disability of a
participant ceases, the Disability Benefit shall also cease and the participant
shall receive no further Years of Credited Service unless, in the case of a
participant receiving an unreduced Disability Benefit, the participant returns
to the employ of an Employer within thirty (30) days after the cessation of
disability.

                  (i) SPECIAL CREDIT. In that event, the participant shall
         receive Years of Credited Service for the entire period of permanent
         disability.

                  (ii) OTHER. If the participant does not return to the employ
         of an Employer within thirty (30) days after the cessation of
         disability, or in the case of a participant receiving a reduced
         Disability Benefit, the participant shall not receive any Years of
         Credited Service for the period of permanent disability and shall be
         entitled only to the benefit, if any, applicable on the date of
         commencement of the permanent disability, determined as if employment
         with the Employers had terminated as of that date.

         3.5 DEATH BENEFIT. Death Benefits are payable only under this Section.

         (a) NON-ELIGIBLE. If an individual dies before vesting, no benefit is
payable under this Plan.

         (b) ELIGIBLE DEATH. The Qualifying Spouse (as defined in the Kaydon
Corporation Retirement Plan) of a participant who dies after vesting but before
benefits are payable is entitled to the Spousal Survivor Annuity. If the Spousal
Survivor Annuity is not payable, no benefit is payable under this Plan.

                                      -10-
<PAGE>

                  (i) SPOUSAL SURVIVOR ANNUITY. The Spousal Survivor Annuity
         is an equal monthly benefit for the Qualifying Spouse's life equal to
         the Qualifying Spouse's benefit under the Joint and Spousal Survivor
         form of benefits (as defined in the Kaydon Corporation Retirement Plan)
         (with additional Years of Credited Service under Section 2.17(a), if
         applicable) less the Spousal Survivor Annuity benefit payable under the
         Kaydon Corporation Retirement Plan from time to time.

                  (ii) PAYMENT. The Spousal Survivor Benefit is payable at the
         earliest time payment of the Spousal Survivor Annuity benefit under the
         Kaydon Corporation Retirement Plan could commence and is not payable if
         the spouse does not survive until the actual commencement date. The
         benefit is actuarially reduced as provided in Appendix D.

         (c) POST-BENEFIT DEATH. The designated beneficiary of a participant who
dies after benefits are payable is entitled to a continuation of payment under
the elected payment form if the participant was properly receiving payments in
the Joint and Spousal Survivor form, the Joint and Survivor form, or the Period
Certain form (as defined in the Kaydon Corporation Retirement Plan).

         3.6 BENEFIT LIMITATIONS. Notwithstanding any other provision of the
Plan (except as provided in this subsection (a)):

         (a) FORFEITURE OF VESTED BENEFITS. An individual forfeits all amounts
payable under the Plan, whether or not vested and whether or not benefits have
yet commenced, if the individual:

             (i) FOR CAUSE. Is discharged For Cause;

             (ii) EMPLOYMENT. Is employed other than by Kaydon Corporation
         or one of its wholly-owned subsidiaries or is self-employed, in any
         capacity to any

                                      -11-
<PAGE>

         extent, prior to attainment of age 65, without prior written approval
         of the Committee or the Board of Directors; or

                  (iii) COMPETE. Is employed or is self-employed, in any
         capacity to any extent, at any age, in any industry determined by the
         Committee or the Board of Directors in its discretion to be an industry
         in which Kaydon Corporation or any of its subsidiaries competes.

         Subsection (ii) shall not apply if Section 3.8 operates with respect to
the individual. For purposes of this Plan, discharge is For Cause if the
participant, in connection with the participant's duties as an employee of the
Employer or any of its affiliates, committed a fraud or any felony, engaged in
deliberate, willful or gross misconduct, or committed any other act which causes
or may reasonably be expected to cause substantial injury to Kaydon or any of
its affiliates. For purposes of clarification, this use of this For Cause
standard for discharge affects the participant's entitlement to benefits under
this Plan only and does not generally limit the ability of Kaydon or other
employer to terminate participant's employment for any reason or for no reason
at all.

         (b) RECEIPT OF BENEFIT. Receipt of any benefit under the Plan fully
terminates the employment relationship with the Employers.

         (c) KAYDON CORPORATION RETIREMENT PLAN BENEFIT. Except where Section
3.8 operates, an individual is entitled to a benefit under this Plan only if the
individual is entitled to and is receiving a benefit from the Kaydon Corporation
Retirement Plan or would be entitled to a benefit from that Plan except that the
individual's Employer did not maintain that Plan.

         (d) SINGLE BENEFIT. A participant is eligible for only one (1) type of
benefit under the Plan. The receipt of a Plan benefit during any month precludes
payment of another type of benefit for the same month. Under no circumstances
will the Plan pay duplicate benefits with respect to the same participant or
surviving spouse benefits in

                                      -12-
<PAGE>

excess of the actuarial present value of the benefits described in this Article
III determined as of the earlier of the commencement of benefits or the date of
the participant's death.

         (e) EMPLOYMENT AFTER BENEFIT COMMENCEMENT. Benefit payments under the
Plan cease and are forfeited during any period of reemployment with an Employer
or a prior Employer and during any other period during which benefits under the
Kaydon Corporation Retirement Plan are suspended.

         (f) WITHHOLDING AND PAYROLL TAXES. Benefit payments shall be reduced as
determined in the sole discretion of the Employer for any withholding for
federal, state and local income, employment and other taxes required to be
withheld by the Employer in connection with the benefits paid under this Plan.

         3.7 SPECIAL TRANSFER EMPLOYEE RULE. An Active Participant who is
employed while an Active Participant by a subsidiary of Kaydon Corporation which
does not maintain the Kaydon Corporation Retirement Plan:

         (a) SERVICE. Is credited with Years of Vesting Service and Years of
Credited Service under this Plan as though the subsidiary had maintained the
Kaydon Corporation Retirement Plan during the Active Participant's employment by
the subsidiary as an Active Participant; and

         (b) BENEFIT. Receives a benefit under this Plan calculated taking that
imputed service into account for purposes of this Plan. The benefit offset under
this Plan is then calculated based on the greater of:

                  (i) PENSION BENEFIT. The participant's benefit under the
         Kaydon Corporation Retirement Plan based on the aggregate of the
         participant's actual service under that Plan and imputed service under
         Section 3.7(a) of this Plan; or

                  (ii) OTHER BENEFIT. The sum of the participant's actual
         benefit under the Kaydon Corporation Retirement Plan, the participant's
         actual benefit under

                                      -13-
<PAGE>

         any other Kaydon Corporation or other subsidiary defined benefit plan,
         and the Actuarial Equivalent of the participant's actual benefit under
         any other Kaydon Corporation or other subsidiary defined contribution
         plan.

         3.8 CHANGE IN CONTROL OVERRIDE. To the extent a participant is a party
to an effective Change in Control Agreement with an Employer which explicitly
provides for amendment of this Plan as to the participant, upon a Change in
Control as defined in that Agreement and a termination of employment triggering
the operation of that Agreement as to participant, this Plan shall be deemed
amended as to that participant to the extent provided in the Change in Control
Agreement.

                                      -14-
<PAGE>

                                   ARTICLE IV
                                  DISTRIBUTION

         4.1 TIME AND METHOD OF PAYMENT. Except as otherwise explicitly
provided, benefits under this Plan will be paid (other than in the case of death
of the participant) in the presumptive form of payment applicable to the
participant provided for in the Kaydon Corporation Retirement Plan (or which
would be applicable to the participant if the individual were a participant in
that plan), commencing on the first day of the month following attainment of age
65.

         (a) COMMITTEE. Notwithstanding those rules, the Committee may, in its
 sole discretion and without the consent of the individual, spouse, or
 beneficiary (except in the case of operation of Section 3.8):

                  (i) MODIFY TIME OR FORM. Accelerate the commencement of
         benefits to a date not prior to the participant's termination of
         employment and attainment of eligibility for Retirement and pay
         benefits in any form of payment allowed under the Kaydon Corporation
         Retirement Plan from time to time; and

                  (ii) LUMP SUM. Pay the Actuarial Equivalent of the remaining
         benefit in a lump sum before or after benefits commence. Any such
         payment satisfies the obligation of the Employer under this Plan.

         (b) EQUIVALENCE. Each optional form and time of payment of benefits
must be the Actuarial Equivalent of the benefit payable under the Basic form.

         (c) LIMITATION. A participant may not participate in any decision of
the Committee involving that individual.

                                      -15-
<PAGE>

         4.2 CHANGE OF CIRCUMSTANCES. Once payments have begun, no method of
payment may be revoked or modified, nor the benefit increased, by reason of a
subsequent divorce or death of the spouse of a participant before that of the
participant or by reason of the participant's actual retirement after benefits
have begun because of the participant's attainment of age 70-1/2.

         4.3 DESIGNATION OF BENEFICIARY. The beneficiary or contingent
beneficiary designated to receive amounts payable under the Plan (other than the
Spousal Survivor Annuity or the Spousal Survivor portion of the Joint and
Spousal Survivor Annuity) in the event of the participant's death is the same
beneficiary and contingent beneficiary, respectively, applicable to the
participant from time to time under the Kaydon Corporation Retirement Plan.

         4.4 CLAIMS PROCEDURE. A participant or beneficiary, the Committee and
the Board of Directors must observe the following procedures for claims to
benefits.

         (a) CLAIM. If a participant, beneficiary or legal representative
asserts that a benefit which is payable has not been paid in a timely manner,
the individual must file an Application for Distribution with the Committee. The
Committee must grant or deny the request within ninety (90) days after receipt
unless special circumstances require an extension of time. The extension must
not exceed an additional ninety (90) days. The Committee must notify the
applicant in writing of the extension and the reasons for the extension.

         (b) DENIAL OF CLAIM. If a claim is denied, the Committee must provide
to the applicant a written notice containing the reason for the denial. If
notice of a denial of claim or an extension of time is not received by the
applicant within ninety (90) days, the claim is deemed denied.

                                      -16-
<PAGE>

         (c) EMPLOYER REVIEW. Within sixty (60) days after a denial is received,
the applicant may request a review upon written application to the Board of
Directors. The applicant may submit issues and comments in writing to the Board.
The Board must make a decision on review and notify the applicant of the
decision within ninety (90) days of receipt of the request for review unless
circumstances require an extension of time. The extension may not exceed an
additional ninety (90) days.

                  (i) PRE-CHANGE IN CONTROL. Prior to a Change in Control (as
         defined in a Change in Control Agreement affecting a participant), the
         Board has the duty and power in this regard to exercise discretionary
         authority to construe and interpret the Plan and decide all questions
         of eligibility for benefits. The decision of the Board upon review is
         final and binding on the applicant unless the applicant establishes
         that the decision of the Board is arbitrary and capricious.

                  (ii) POST-CHANGE IN CONTROL. After such a Change in Control:

                        (A) INTERPRETATION. The Board's construction and
                  interpretation of the Plan and its decisions regarding
                  eligibility for benefits with respect to the affected
                  participant must be reasonable and consistent with the spirit
                  and intent of the Plan; and

                        (B) STANDARD. The decision of the Board upon review with
                  respect to the affected participant is subject to de novo
                  review.

         (d) LIMITATION. Except as provided in a Change in Control Agreement
affecting the participant, this section does not allow a participant to request
or demand payment of benefits at any time or in any form other than at age 65 in
the presumptive form applicable to the participant under the Kaydon Corporation
Retirement Plan, or to challenge in any manner the Committee's failure or
refusal to exercise the discretion available to it under subsection 4.1(a).

                                      -17-
<PAGE>

         4.5 FACILITY OF PAYMENT. A payment made under this section fully
discharges the Employer and the Committee from all future liability with respect
to the payment.

         (a) INCAPACITY. If a person entitled to payment is legally, physically
or mentally incapable of receiving or acknowledging payment, the Committee may
direct payment: directly to the person; to the person's legal representative; to
the spouse, child or relative by blood or marriage of the person; to the person
with whom the person resides; or by expending the payment directly for the
benefit of the person. A payment made other than to the person is intended to be
used for the person's exclusive benefit.

         (b) LEGAL REPRESENTATIVE. The Committee is not required to commence
probate proceedings or to secure the appointment of a legal representative.

         (c) DETERMINATIONS. The Committee may act upon affidavits in making any
determination. The Committee, in relying upon affidavits or having made a
reasonable effort to locate any person entitled to payment, is authorized to
direct payment to a successor beneficiary or another person. A person omitted
from payment has no rights on account of payments so made.

         (d) ANTI-ESCHEAT. If the Committee cannot locate a person entitled to
payment, the amount is a forfeiture which is reinstated if a claim is made
within the applicable limitations period by a person entitled to payment.

         4.6 OFFSET. The Committee shall offset any benefit by the value of
benefits received before reemployment or when or to the extent benefits should
not have been paid. In addition, in all cases the benefit payable under this
Plan is reduced by the benefit payable under the Kaydon Corporation Retirement
Plan.

         4.7 DISTRIBUTION IN THE EVENT OF TAXATION. If, for any reason, all or
any portion of the participant's benefit under this Plan becomes taxable to the
participant prior to receipt, the participant may petition the Committee for a
distribution of assets

                                      -18-
<PAGE>

sufficient to meet the participant's tax liability (including additions to tax,
penalties and interest).

         (a) CALCULATION. Upon the grant of such a petition, which grant shall
not be unreasonably withheld, the Employer shall distribute to the participant
immediately available funds in an amount equal to the participant's federal,
state and local tax liability associated with such taxation (not to exceed the
participant's Vested Accrued Benefit under the Plan). The liability shall be
measured by using the participant's then current highest federal, state and
local marginal tax rate, plus the rates or amounts for the applicable additions
to tax, penalties and interest.

         (b) TIMING. If the petition is granted, the tax liability distribution
shall be made within 90 days of the grant.

         (c) EFFECT. The distribution shall affect and reduce the participant's
Accrued Benefit and the benefits to be paid under this Plan.

                                      -19-
<PAGE>

                                    ARTICLE V
                                 ADMINISTRATION

         5.1 COMMITTEE. The Committee has responsibility for general
administration of the Plan.

         (a) AUTHORITY. The Committee has the duty and power to:

                  (i) CONSTRUCTION. Exercise discretionary authority to construe
         and interpret the Plan and decide all questions of eligibility for
         participation and benefits;

                  (ii) PROCEDURES. Prescribe procedures and forms for the
         payment of benefits; and

                  (iii) BENEFIT AUTHORIZATION. Determine entitlement to, the
         amount of, the timing of and the form of benefits and authorize benefit
         payments.

         (b) PROCEDURE AND ACTION. The Committee may elect one of its members as
chairperson and may designate a secretary. The Committee must keep a brief
record of all meetings. Any delegation of duties by the Committee must state the
scope of the delegation with reasonable specificity. The Committee acts by a
majority of its members, either by vote at a meeting or by signature to a
writing. Action by the Committee must be evidenced by written and duly executed
instrument.

         (c) FINALITY. Except as provided in subsection (d), the decision or
action of the Committee with respect to any question arising out of or in
connection with the administration, interpretation and application of the Plan
is final and conclusive and binding on all persons having any interest in the
Plan.

         (d) POST-CHANGE IN CONTROL. After a Change in Control (as defined in a
Change in Control Agreement affecting a participant):

                                      -20-
<PAGE>

                  (i) INTERPRETATION. The Committee's construction and
         interpretation of the Plan and its decisions regarding eligibility for
         benefits with respect to the affected participant must be reasonable
         and consistent with the spirit and intent of the Plan; and

                  (ii) STANDARD. The decisions of the Committee with respect to
         the affected participant are subject to de novo review.

         (e) OTHER DISCRETION. The Committee also has the authority, in its
complete and absolute discretion, to grant on a case by case basis additional
Years of Credited Service in addition to the Years of Credited Service already
credited to the participant. Total Years of Credited Service must be limited to
30.

         5.2 LIMITATION OF LIABILITY AND INDEMNIFICATION. As a condition of
participation in the Plan, each participant agrees that neither the Employers'
officers and agents, the Committee, the Board of Directors, nor their individual
members shall in any way be subject to any suit, litigation, or legal liability
for any cause or reason in connection with the Plan or its operation, and each
participant releases the Employers' officers and agents, the Committee, the
Board of Directors and their individual members from any and all such liability
or obligation. The Board of Directors, the Committee and their respective
individual members shall not be liable for any act, omission, determination,
construction, or communication made by that individual or any other party. Each
shall be indemnified by Kaydon Corporation against any and all liabilities
arising by reason of any act or failure to act made in good faith pursuant to
the provisions of the Plan, including expenses reasonably incurred in the
defense of any claim of liability.

                                      -21-
<PAGE>

                                   ARTICLE VI
                       AMENDMENT AND TERMINATION OF PLAN

         6.1 AMENDMENT OR TERMINATION. The Board of Directors of Kaydon
Corporation may amend or terminate the Plan at any time and the Board of
Directors of each Employer may amend or terminate the Plan as to that Employer
at any time. Except as explicitly limited, no individual has any right to
continuation of the Plan, to continued participation in the Plan, or to
continued accrual under the Plan.

         (a) LIMITATION. No amendment or termination may, without the consent of
the participant, modify Section 4.4(c)(ii) or 5.1(d) of this Plan or
retroactively decrease the vested Accrued Benefit of a participant:

                  (i) REGULAR VESTING. Who completed ten (10) Years of Credited
         Service or ten (10) Years of Vesting Service and attained age 55 while
         (or prior to becoming) an Active Participant and prior to the amendment
         or termination;

                  (ii) AGE VESTING. Who attained age 65 while (or prior to
         becoming) an Active Participant and prior to the amendment or
         termination; or

                  (iii) CHANGE IN CONTROL. Upon or after the occurrence of a
         Change in Control, if the participant is at that time a party to an
         effective Change in Control Agreement.

         (b) BENEFITS, RIGHTS AND FEATURES. No amendment or termination upon or
after the occurrence of a Change in Control may, without the consent of the
participant, adversely affect the benefits, rights or features of this Plan
(determined in accordance with Section 411(d) of the Code and applicable
regulations) at the time of the Change in Control with respect to a participant
who is at that time:

                  (i) CHANGE IN CONTROL. A party to an effective change in
         control Agreement; and

                  (ii) THIS PLAN. An Active Participant in this Plan.

                                      -22-
<PAGE>

         (c) AUTOMATIC. Subject to subsections (a) and (b), above, any freeze of
benefit accrual or termination of the Kaydon Corporation Retirement Plan shall
automatically effect a freeze or termination of this Plan, as the case may be.

         6.2 CHANGE IN CONTROL AGREEMENT. This Plan may also be amended as to a
participant by an effective Change in Control Agreement or other written
document which explicitly amends this Plan and which is signed by the
participant, and authorized representatives of Kaydon Corporation or the
participants Employer.

                                      -23-
<PAGE>

                                  ARTICLE VII
                                 MISCELLANEOUS

         7.1 NONASSIGNABILITY. Benefits are not subject to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, charge, attachment,
garnishment, execution, or levy (Assignment), before actual receipt, by
creditors of the participant or the participant's beneficiary. Any assignment
which violates this section is void. The right to receive a benefit is not an
asset for insolvency or bankruptcy.

         7.2 EMPLOYMENT RIGHTS NOT ENLARGED. The Plan does not create any
employment rights or restrict an Employer's right to discharge an employee.

         7.3 PARTICIPANTS' RIGHTS LIMITED. The Plan does not give any
participant or beneficiary: any interest in any Employer's assets, business or
affairs; the right to question any Employer action or policy; or the right to
examine Employer books and records. The rights of all participants are limited
to the right to receive payment of benefits when due. The Employer's obligation
under the Plan is simply an unfunded and unsecured promise to pay money in the
future and its assets remain the general, unpledged and unrestricted assets of
the Employer. Notwithstanding these limits and any other provision of this Plan,
the Employer shall not be a party to any merger, consolidation, or
reorganization unless its obligations under this Plan are expressly assumed by
its successor. This Plan shall inure to the benefit of and shall be binding upon
the successors and assigns of the Employer and each participant.

         7.4 INTERPRETATION AND CONSTRUCTION. The use of the singular includes
the plural where applicable, and vice versa. The headings in the Plan do not
limit or extend the provisions of the Plan. Capitalized terms, except where
capitalized solely for

                                      -24-
<PAGE>

grammar, have the meanings as provided in the Plan. If a provision is
unenforceable in a legal proceeding, the provision is severed only for that
proceeding.

         7.5 GOVERNING LAW. The Plan is governed by the applicable laws of the
United States of America (including the Code, ERISA, securities law, labor law,
age discrimination law, and civil rights law) and, to the extent not preempted,
by the laws of Florida.

         7.6 ARBITRATION. Any claim which cannot be resolved under this Plan
shall be submitted to arbitration.

         (a) RULES. The arbitration shall be conducted by the American
Arbitration Association under its commercial arbitration rules within the county
where the Employer maintains its registered office.

         (b) AWARD. The Arbitrator's decision shall be embodied in an award
which shall be final and binding on the parties. In making an award, the
arbitrator may include any remedy contemplated by this Agreement and shall
allocate the fees and expenses of the arbitration.

KAYDON CORPORATION AND
KAYDON RING & SEAL, INC.

By /s/ Lawrence J. Cawley
   ----------------------------------
   Lawrence J. Cawley
   The Chairman and Chief Executive
   Officer of Kaydon Corporation

And /s/ John F. Brocci
   ----------------------------------
   John F. Brocci
   The President and Secretary of
   Kaydon Ring & Seal, Inc.
   and the Secretary of Kaydon Corporation

                                      -25-
<PAGE>

                                   APPENDIX A

                                OTHER EMPLOYERS

Kaydon Ring & Seal, Inc.

<PAGE>

                                   APPENDIX B

                              ACTIVE PARTICIPANTS

<TABLE>
<CAPTION>
                                                                                    Effective Date of
                                                            Effective Date of         Cessation of
Name                           Employer                   Active Participation    Active Participation
----                           --------                   --------------------    --------------------
<S>                            <C>                        <C>                     <C>
John F. Brocci                 Kaydon Corporation           January 1, 1994
Thomas A. Bushar               Kaydon Corporation           January 1, 1994
Brian P. Campbell              Kaydon Corporation           October 1, 1998
Lawrence J. Cawley             Kaydon Corporation           January 1, 1994
Stephen K. Clough              Kaydon Corporation           January 1, 1994          June 26,1998
Patrick T. Kirk                Kaydon Corporation           January 1, 1994
Arthur Ridler                  Kaydon Ring & Seal, Inc.     January 1, 1994
</TABLE>

<PAGE>

                                   APPENDIX C

                    ADDITIONAL CREDIT UNDER SECTION 2.17(A)

<TABLE>
<CAPTION>
                                                             Effective Date of                    Effective Date of
                                                     Eligibility for Additional Credit   Eligibility for Additional Credit
Name                         Employer                      Under Section 2.17(a)                Under Section 2.17(a)
----                         --------                      ---------------------                ---------------------
<S>                          <C>                     <C>                                 <C>
John F. Brocci               Kaydon Corporation            August 1, 1998

Brian P. Campbell            Kaydon Corporation            October 1, 1998

Lawrence J. Cawley           Kaydon Corporation            August 1, 1998

</TABLE>

<PAGE>

                                   APPENDIX D

                               ACTUARIAL FACTORS

D.l               TIME OF PAYMENT ACTUARIAL EQUIVALENCE. Actuarially reduced
                  from age 62 based on:

     (a)          INTEREST RATE. 7.5%

     (b)          MORTALITY. 1983 Group Annuity Mortality (GAM) with annuity
values based on 75% male and 25% female mortality.

D.2               FORM OF PAYMENT ACTUARIAL EQUIVALENCE.

     (a)          INTEREST RATE. 7.5%

     (b)          MORTALITY. 1983 Group Annuity Mortality (GAM) with annuity
values based on 75% male and 25% female mortality.

     (c)          LUMP SUM OVERRIDE. For purposes of determining lump sum
actuarial equivalence under this Plan, the interest rate, mortality and other
factors applicable for purposes of determining lump sum actuarial equivalence
under the Kaydon Corporation Retirement Plan from time to time and, to the
extent not addressed by that Plan, GATT shall be used instead of the interest
rate and mortality factors provided in this Appendix A.

D.3               OTHER. For any other purpose for which Actuarial Equivalence
                  is specified:

     (a)          INTEREST RATE. 7.5%

     (b)          MORTALITY. 1983 Group Annuity Mortality (GAM) with annuity
values based on 75% male and 25% female mortality.

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