Document:

EX-4.2

 Exhibit 4.2 

 
  
 PRUDENTIAL FINANCIAL, INC. 
 TO 

THE BANK OF NEW YORK MELLON 
 Trustee 
 Eighth Supplemental Indenture 

Dated as of March 14, 2013 
 5.70% Junior Subordinated Notes due 2053 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	ARTICLE ONE	 	DEFINITIONS	  	 	1	  
			
	 Section 1.01.
	 	 Definitions
	  	 	1	  
			
	 ARTICLE TWO
	 	GENERAL TERMS AND CONDITIONS OF THE NOTES	  	 	5	  
			
	 Section 2.01.
	 	 Designation and Principal Amount
	  	 	5	  
	 Section 2.02.
	 	 Maturity
	  	 	6	  
	 Section 2.03.
	 	 Form
	  	 	6	  
	 Section 2.04.
	 	 Rate of Interest; Interest Payment Dates
	  	 	6	  
	 Section 2.05.
	 	 Deferral
	  	 	7	  
	 Section 2.06.
	 	 Events of Default
	  	 	7	  
	 Section 2.07.
	 	 Securities Registrar; Paying Agent; Place of Payment
	  	 	8	  
	 Section 2.08.
	 	 No Sinking Fund
	  	 	8	  
	 Section 2.09.
	 	 Subordination
	  	 	8	  
	 Section 2.10.
	 	 Senior Indebtedness
	  	 	9	  
	 Section 2.11.
	 	 Defeasance
	  	 	10	  
			
	 ARTICLE THREE
	 	COVENANTS	  	 	10	  
			
	 Section 3.01.
	 	 Dividend and Other Payment Stoppages
	  	 	10	  
			
	 ARTICLE FOUR
	 	REDEMPTION OF THE NOTES	  	 	12	  
			
	 Section 4.01.
	 	 Redemption
	  	 	12	  
			
	 ARTICLE FIVE
	 	ORIGINAL ISSUE OF NOTES	  	 	12	  
			
	 Section 5.01.
	 	 Calculation of Original Issue Discount
	  	 	12	  
			
	 ARTICLE SIX
	 	SUPPLEMENTAL INDENTURES	  	 	13	  
			
	 Section 6.01.
	 	 Supplemental Indentures without Consent of Holders
	  	 	13	  
	 Section 6.02.
	 	 Supplemental Indentures with Consent of Holders
	  	 	13	  
			
	 ARTICLE SEVEN
	 	MISCELLANEOUS	  	 	14	  
			
	 Section 7.01.
	 	 Effectiveness
	  	 	14	  
	 Section 7.02.
	 	 Successors and Assigns
	  	 	14	  
	 Section 7.03.
	 	 Effect of Recitals
	  	 	14	  
	 Section 7.04.
	 	 Ratification of Indenture
	  	 	14	  
	 Section 7.05.
	 	 Tax Treatment
	  	 	15	  
	 Section 7.06.
	 	 Governing Law
	  	 	15	  
	 Section 7.07.
	 	 Severability
	  	 	15	  
	 Section 7.08.
	 	 Consequential Damages and Force Majeure
	  	 	15	  

  
 -i-

 EIGHTH SUPPLEMENTAL INDENTURE 

Eighth Supplemental Indenture, dated as of March 14, 2013 (the “Supplemental Indenture”), between Prudential
Financial, Inc., a New Jersey corporation (the “Company”), having its principal office at 751 Broad Street, Newark, New Jersey 07102, and The Bank of New York Mellon (formerly known as The Bank of New York), a New York banking
corporation, as trustee (hereinafter called the “Trustee”). 
 RECITALS OF THE COMPANY 

The Company and the Trustee executed and delivered an indenture, dated as of June 17, 2008 (the “Base Indenture”),
to the Trustee to provide for the future issuance of the Company’s subordinated debt securities, to be issued from time to time in one or more series as might be determined by the Company under the Base Indenture. 

Section 901 of the Base Indenture provides that the Company and the Trustee, without the consent of any Holder, may enter into a
supplemental indenture to establish the form or terms of Securities of any series as permitted by Sections 201 and 301 thereof. 

Pursuant to the terms of the Base Indenture, the Company desires to provide for the establishment, authentication and issuance of a new
series of its Securities, the form and terms thereof, as hereinafter set forth. 
 The Company has requested that the Trustee
execute and deliver this Supplemental Indenture. The Company has delivered to the Trustee an Opinion of Counsel and an Officers’ Certificate pursuant to Sections 102 and 903 of the Base Indenture to the effect, among other things, that all
conditions precedent provided for in the Base Indenture to the Trustee’s execution and delivery of this Supplemental Indenture have been complied with. All acts and things necessary have been done and performed to make this Supplemental
Indenture enforceable in accordance with its terms, and the execution and delivery of this Supplemental Indenture has been duly authorized in all respects. 
 NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: For and in consideration of the premises and the purchase of the Notes (as herein defined) by the Holders thereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows: 
 ARTICLE ONE 

Definitions 
  

	Section 1.01.	Definitions 

 For all
purposes of this Supplemental Indenture, except as otherwise expressly provided herein or unless the context otherwise requires: 
 (a) the terms defined in the Base Indenture have the same meanings when used in this Supplemental Indenture unless otherwise defined herein; 

 (b) the terms defined in this Article have the meanings assigned to them in this article,
and include the plural as well as the singular; 
 (c) any reference to an Article, Section, other subdivision or Exhibit refers
to an Article, Section or other subdivision of, or Exhibit to, this Supplemental Indenture; and 
 (d) the words
“herein”, “hereof” and “hereunder” and other words of similar import refer to this Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision. 

In addition, the following terms used in this Supplemental Indenture have the following respective meanings: 

“Business Day” means any day other than (i) a Saturday or Sunday, (ii) a day on which banking institutions in
The City of New York are authorized or required by law or executive order to remain closed or (iii) a day on which the Corporate Trust Office is closed for business. 
 “Capital Regulator” means the Board of Governors of the Federal Reserve System, if the Company is then subject to its regulation, or such other agency or instrumentality of the United
States as may have primary oversight of the Company’s regulatory capital. 
 “Company” has the meaning
specified in the Recitals. 
 “Deferral Period” means the period commencing on an Interest Payment Date with
respect to which the Company defers interest pursuant to Section 2.05 and ending on the earlier of (i) the fifth anniversary of that Interest Payment Date and (ii) the next Interest Payment Date on which the Company has paid all
deferred and unpaid amounts (including compounded interest on such deferred amounts) and all other accrued interest on the Notes. 
 “Indenture” means the Base Indenture as supplemented by this Supplemental Indenture, and as further supplemented from time to time with respect to the Notes. 

“Interest Payment Date” has the meaning specified in Section 2.04(b). 

“Interest Period” means the period beginning on and including the date hereof and ending on but excluding the first
Interest Payment Date thereafter and each successive period beginning on and including an Interest Payment Date and ending on but excluding the next Interest Payment Date. 
 “Make-Whole Redemption Price” means, with respect to a redemption of the Notes in whole prior to March 15, 2018, the present value of a principal payment on March 15, 2018 and
scheduled payments of interest that would have accrued from the Redemption Date to March 15, 2018 on the Notes being redeemed (excluding any accrued and unpaid interest for the period prior to the Redemption Date), discounted to the Redemption
Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Rate, plus 0.40%, as determined and provided to the Company by the Treasury Dealer. 

  
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 “Maturity Date” has the meaning specified in Section 2.02. 

“Notes” has the meaning specified in Section 2.01(a). 

“Pari Passu Securities” means (i) the Company’s 8.875% Fixed-to-Floating Rate Junior Subordinated Notes
due 2068, (ii) the Company’s 9.0% Junior Subordinated Notes due 2068, (iii) the Company’s 5.875% Fixed-to-Floating Rate Junior Subordinated Notes due 2042 (iv) the Company’s 5.625% Fixed-to-Floating Rate Junior
Subordinated Notes due 2043 and (v) the Company’s 5.75% Junior Subordinated Notes due 2052. 
 “Parity
Securities” means indebtedness of the Company that by its terms ranks in right of payment upon liquidation of the Company on a parity with the Notes, including the Pari Passu Securities. 

“Rating Agency Event” means that any nationally recognized statistical rating organization within the meaning of
Section 3(a)(62) of the Exchange Act that then publishes a rating for the Company (a “rating agency”) amends, clarifies or changes the criteria it uses to assign equity credit to securities such as the Notes, which amendment,
clarification or change results in: 
 (i) the shortening of the length of time the Notes are assigned a
particular level of equity credit by that rating agency as compared to the length of time they would have been assigned that level of equity credit by that rating agency or its predecessor on the date hereof, or 

(ii) the lowering of the equity credit (including up to a lesser amount) assigned to the Notes by that rating agency as
compared to the equity credit assigned by that rating agency or its predecessor on the date hereof. 
 “Regulatory
Capital Event” means that, if (a) the Company is or will be considered to be a systemically important nonbank financial company (a “nonbank SIFT”) or is or will be otherwise subject to capital adequacy supervision by a
Capital Regulator and (b) the capital adequacy guidelines that apply or will apply to the Company as a nonbank SIFI or as a result of such other capital adequacy supervision (“future federal capital adequacy guidelines”), set
forth criteria for qualifying “Tier 2 Capital” (or its equivalent), the Company makes a good faith determination that, as a result of: 
 (i) any amendment to, or change in, the laws or regulations of the United States or any political subdivision of or in the United States that is enacted or becomes effective after the date hereof;

 (ii) any proposed amendment to, or change in, those laws or regulations that is announced or becomes effective
after the date hereof; or 
 (iii) any official administrative decision or judicial decision or administrative
action or other official pronouncement interpreting or applying those laws or regulations that is announced after the date hereof, 

  
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 such that, in any such case, there is more than an insubstantial risk that
the full principal amount of the Notes outstanding from time to time would not qualify as “Tier 2 Capital” (or its equivalent) for purposes of the future federal capital adequacy guidelines, as in effect and/or as proposed from time to
time to which the Company is or will be subject, for as long as any notes are outstanding; provided that the proposal or adoption of any criterion set forth in the future federal capital adequacy guidelines that is substantially the same as
the corresponding criterion in either the capital adequacy guidelines applicable to bank holding companies as of date hereof or such guidelines as proposed in the June 2012 joint notice of proposed rulemaking to implement the capital provisions of
the Basel Committee on Banking Supervision for U.S. banking institutions will not constitute a Regulatory Capital Event. 

“Supplemental Indenture” means this instrument as originally executed or as it from time to time may be supplemented or
amended by one or more agreements supplemental hereto. 
 “Tax Event” means the receipt by the Company of an
opinion of independent counsel experienced in such matters to the effect that, as a result of any: 
 (i)
amendment to or change (including any officially announced proposed change) in the laws or regulations of the United States or any political subdivision or taxing authority of or in the United States that is enacted or effective on or after the date
hereof; 
 (ii) official administrative decision or judicial decision or administrative action or other official
pronouncement (including a private letter ruling, technical advice memorandum or other similar pronouncement) by any court, government agency or regulatory authority that reflects an amendment to, or change in, the interpretation or application of
those laws or regulations that is announced on or after the date hereof; or 
 (iii) threatened challenge
asserted in connection with an audit of the Company, or a threatened challenge asserted in writing against any taxpayer that has raised capital through the issuance of securities that are substantially similar to the Notes, which challenge is
asserted against the Company or becomes publicly known on or after the date hereof, 
 there is more than an insubstantial increase in the risk
that interest payable by the Company on the Notes is not, or within 90 days of the date of such opinion will not be, deductible by the Company, in whole or in part, for U.S. federal income tax purposes. 

“Treasury Dealer” means one of Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Morgan Stanley & Co. LLC and UBS Securities LLC (or their successors), as selected by the Company, or if all of the foregoing refuse to act as Treasury Dealers for the purpose of determining the
Make-Whole Redemption Price or cease to be primary U.S. government securities dealers, another nationally recognized investment banking firm that is a primary U.S. government securities dealer specified by the Company to act as Treasury Dealer for
the purpose of determining the Make-Whole Redemption Price. 

  
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 “Treasury Price” means, with respect to a Redemption Date, the bid-side
price for the Treasury Security as of the third trading day preceding the Redemption Date, as set forth in the Wall Street Journal in the table entitled “Treasury Bonds, Notes and Bills”, except that: (i) if that table (or any
successor table) is not published or does not contain that price information on that trading day or (ii) if the Treasury Dealer determines that the price information is not reasonably reflective of the actual bid-side price of the Treasury
Security prevailing at 3:30 p.m., New York City time, on that trading day, then Treasury Price will instead mean the bid-side price for the Treasury Security at or around 3:30 p.m., New York City time, on that trading day (expressed on a next
trading day settlement basis) as determined by the Treasury Dealer through such alternative means as are commercially reasonable under the circumstances. 
 “Treasury Rate” means, with respect to a Redemption Date, the semi-annual equivalent yield to maturity of the Treasury Security that corresponds to the Treasury Price (calculated by the
Treasury Dealer in accordance with standard market practice and computed by the Treasury Dealer as of the second trading day preceding the Redemption Date). 
 “Treasury Security” means the United States Treasury security that the Treasury Dealer determines would be appropriate to use, at the time of determination and in accordance with standard
market practice, in pricing the Notes being redeemed in a tender offer based on a spread to United States Treasury yields. 

ARTICLE TWO 

General Terms and Conditions of the Notes 
  

	Section 2.01.	Designation and Principal Amount 

 (a) Designation 
 Pursuant to Section 301 of the Base Indenture, there
is hereby established a series of Securities of the Company designated as the 5.70% Junior Subordinated Notes due 2053 (the “Notes”), the principal amount of which to be issued shall be in accordance with Section 2.01(b) and as
set forth in a Company Order for the authentication and delivery of Notes pursuant to the Base Indenture, and the form and terms of which shall be as set forth hereinafter. 
 (b) Principal Amount; Additional Notes 
 Notes in an initial aggregate
principal amount of $650,000,000 upon execution of this Supplemental Indenture, shall be executed by the Company and delivered to the Trustee, and the Trustee shall thereupon authenticate and deliver said Notes in accordance with a Company Order.
The Company may execute and deliver to the Trustee, and the Trustee shall thereupon authenticate and deliver said Notes in accordance with a Company Order, up to an additional $97,500,000 principal amount of Notes pursuant to the exercise of the
underwriters’ over-allotment option under the Underwriting Agreement, dated March 7, 2013, among the Company and Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated,
Morgan Stanley & Co. LLC and UBS Securities LLC, as representatives of the several underwriters. At any time and from time to time after the date hereof, without the 

  
 5 

 
consent of any Holders of the Notes, the Company may execute and deliver additional Notes, in addition to the $650,000,000 initial aggregate principal amount previously provided for and in
addition to the principal amount of any Notes delivered pursuant to the exercise of the underwriters’ over-allotment option, to the Trustee for authentication, together with a Company Order for the authentication and delivery of such additional
Notes, so long as such additional Notes are fungible for U.S. federal income tax purposes with the Notes issued as of the date hereof. Any additional Notes so issued shall have the same terms and conditions as the Notes issued on the date hereof in
all respects, except for any difference in the issue date, issue price, interest accrued prior to the issue date of the additional Notes and first Interest Payment Date and shall be governed by this Supplemental Indenture and shall rank equally and
ratably in right of payment with the Notes issued on the date of this Supplemental Indenture and, together with the Notes issued as of the date of this Supplemental Indenture, shall be treated as a single series of Notes for all purposes.

  

	Section 2.02.	Maturity 

 The Notes will
mature on March 15, 2053 (the “Maturity Date”). If the Maturity Date is not a Business Day, payment of principal and interest to be made on the Maturity Date shall be made on the next Business Day (but no interest shall accrue
as a result of that postponement). 
  

	Section 2.03.	Form 

 The Notes shall be
substantially in the form of Exhibit A, shall include the Trustee’s certificate of authentication in the form required by Section 205 of the Base Indenture and shall be issued in fully registered definitive form without interest coupons.

 The Notes initially are issuable solely as Global Securities and shall bear the legend required by Section 204 of the
Base Indenture. 
 The Depositary for the Notes initially shall be the Depository Trust Company (or any successor thereto).

  

	Section 2.04.	Rate of Interest; Interest Payment Dates 

 (a) Rate of Interest; Accrual 
 The Notes shall bear interest on their
principal amount from and including March 14, 2013, to but excluding, the Maturity Date, or any earlier Redemption Date, at the rate of 5.70% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months. Defaulted
Interest and interest deferred pursuant to Section 2.05 will bear interest, to the extent permitted by law, at such interest rate, from and including the relevant Interest Payment Date, compounded on each subsequent Interest Payment Date.

 (b) Interest Payment Dates 
 Subject to Section 2.05, accrued interest on the Notes shall be payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, beginning on June 15,

  
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2013 (each such date, an “Interest Payment Date”), or if any such day is not a Business Day, the next Business Day (but no interest will accrue as a result of that postponement),
to the Holders of the Notes at the close of business on the immediately preceding March 1, June 1, September 1 and December 1 (whether or not a Business Day), as the case may be. 

 

	Section 2.05.	Deferral 

 (a) Option
to Defer Interest Payments 
 (i) So long as no Event of Default with respect to the Notes has occurred or is
continuing, the Company shall have the right, at any time and from time to time, to defer the payment of interest on the Notes for one or more consecutive Interest Periods that do not exceed five years for any single Deferral Period, provided
that no Deferral Period shall extend beyond the Maturity Date, any earlier accelerated maturity date arising from an Event of Default or any other earlier redemption of the Notes. If the Company has paid all deferred interest (including compounded
interest thereon) on the Notes, the Company shall have the right to elect to begin a new Deferral Period pursuant to this Section 2.05(a). 
 (ii) At the end of any Deferral Period, the Company shall pay all deferred interest (including compounded interest thereon) on the Notes to the Persons in whose names the Notes are registered in the
Securities Register at the close of business on the Regular Record Date with respect to the Interest Payment Date at the end of such Deferral Period. 
 (b) Notice of Deferral 
 The Company shall give written notice of its
election to commence or continue any Deferral Period to the Trustee and the Holders of the Notes at least one Business Day and not more than 60 Business Days before the next Interest Payment Date. Such notice shall be given to the Trustee and each
Holder of Notes at such Holder’s address appearing in the Security Register by first-class mail, postage prepaid. 
  

	Section 2.06.	Events of Default 

 (a)
Clauses (1) through (4) of Section 501 of the Base Indenture shall not apply to the Notes. Clauses (5) and (6) of Section 501 of the Base Indenture shall apply to the Notes. 

(b) If an Event of Default specified in Clause (5) or (6) of Section 501 of the Base Indenture occurs, the principal
amount of all the Notes shall automatically, and without any declaration or other action on the part of the Trustee or any Holder, become immediately due and payable. 
 (c) The Trustee shall provide to the Holders of the Notes notice of any Event of Default or default with respect to the Notes within 90 days after the actual knowledge of a Responsible Officer of the
Trustee of such Event of Default or default. However, except in the case of a default in payment on the Notes, the Trustee will be protected in withholding the notice if one of its Responsible Officers determines that withholding of the notice is in
the interest of such Holders. 

  
 7 

 (d) The Trustee shall have no right or obligation under the Indenture or otherwise to
exercise any remedies on behalf of any Holders of the Notes pursuant to the Indenture in connection with any default, unless such remedies are available under the Indenture and the Trustee is directed to exercise such remedies pursuant to and
subject to the conditions of Section 512 of the Base Indenture, provided, however, that this provision shall not affect the rights of the Trustee with respect to any Events of Default as set forth in Section 2.06(b) that may
occur with respect to the Notes. In connection with any such exercise of remedies the Trustee shall be entitled to the same immunities and protections and remedial rights (other than acceleration) as if such default were an Event of Default.

 (e) For purposes of this Section 2.06, the term “default” means any of the following events: 

(i) default in the payment of interest, including compounded interest, in full on any Notes for a period of 30 days after
the conclusion of a five-year period following the commencement of any Deferral Period if such Deferral Period has not ended prior to the conclusion of such five-year period; 

(ii) default in the payment of principal of or premium, if any, on the Notes when due; or 

(iii) default in the observance or performance of any covenant or agreement contained in the Indenture or the Notes.

  

	Section 2.07.	Securities Registrar; Paying Agent; Place of Payment 

 The Company appoints the Trustee as Securities Registrar and Paying Agent with respect to the Notes. The Place of Payment for the Notes will be as specified in the Notes. 

 

	Section 2.08.	No Sinking Fund 

 The
Notes shall not be subject to Article Thirteen of the Base Indenture. 
  

	Section 2.09.	Subordination 

 The
subordination provisions of Article Eleven of the Base Indenture shall apply to the Notes, except that solely for purposes of the Notes, Section 1103 of the Base Indenture shall be amended as follows: 

(a) Clauses (a) and (b) of Section 1103 of the Base Indenture shall be deleted and replaced with the following:

 “(a) (1) In the event and during the continuation of any default in the payment of principal, premium, if any, or
interest on any Senior Indebtedness beyond any applicable grace period with respect thereto, 

  
 8 

 
(2) in the event that any event of default with respect to any Senior Indebtedness shall have occurred and be continuing, permitting the direct holders of that Senior Indebtedness (or a
trustee on behalf of the holders thereof) to accelerate maturity of that Senior Indebtedness, whether or not the maturity is in fact accelerated (unless, in the case of either subclause (1) or (2) of this clause (a), the payment default or
event of default has been cured or waived or ceased to exist and any related acceleration has been rescinded), or (3) in the event that any judicial proceeding shall be pending with respect to a payment default or event of default described in
subclause (1) or (2) of this clause (a), no payment or distribution of any kind or character, whether in cash, securities or other property, shall be made by the Company on account of the principal of or interest on the Notes unless and
until all amounts then due and payable in respect of such Senior Indebtedness, including any interest accrued after such event occurs, shall have been paid in full.” 
 (b) Clause “(c)” of Section 1103 of the Base Indenture shall be renumbered clause “(b)”; and 
 (c) Clause “(d)” of Section 1103 of the Base Indenture shall be renumbered clause “(c)”. 
  

	Section 2.10.	Senior Indebtedness 

Solely for the purposes of the Notes, the definition of “Senior Indebtedness” in Section 101 of the Base Indenture shall be
deleted and replaced by the following: 
 “Senior Indebtedness” means the principal of, premium, if any, and
interest on and any other payment due pursuant to any of the following, whether Incurred on or prior to the date hereof or hereafter Incurred: 
 (i) all obligations of the Company (other than obligations pursuant to the Notes and obligations pursuant to the Indenture with respect thereto) for money borrowed; 

(ii) all obligations of the Company evidenced by securities, notes, debentures, bonds or other similar instruments (other
than the Notes), including obligations Incurred in connection with the acquisition of property, assets or businesses; 
 (iii) all capital lease obligations of the Company; 
 (iv) all
reimbursement obligations of the Company with respect to letters of credit, bankers’ acceptances or similar facilities issued for the account of the Company; 

(v) all obligations of the Company issued or assumed as the deferred purchase price of property or services, including all
obligations under master lease transactions pursuant to which the Company or any of its subsidiaries have agreed to be treated as owner of the subject property for U.S. federal income tax purposes; 

  
 9 

 (vi) all payment obligations of the Company under interest rate swap or
similar agreements or foreign currency hedge, exchange or similar agreements at the time of determination, including any such obligations Incurred by the Company solely to act as a hedge against increases in interest rates that may occur under the
terms of other outstanding variable or floating rate indebtedness of the Company; and 
 (vii) all obligations of
the type referred to in clauses (i) through (vi) above of another Person and all dividends of another Person the payment of which, in either case, the Company has assumed or guaranteed or for which the Company is responsible or liable,
directly or indirectly, jointly or severally, as obligor, guarantor or otherwise; 
 provided, however, that
“Senior Indebtedness” shall not include: (1) obligations to trade creditors created or assumed by the Company in the ordinary course of business, (2) indebtedness that is by its terms subordinate, or not superior, in right of
payment to the Notes or (3) the Company’s Pari Passu Securities.” 
  

	Section 2.11.	Defeasance 

 The
provisions of Section 1402 of the Base Indenture (relating to discharge of the Indenture) shall apply to the Notes. For purposes of Section 1404(2) of the Base Indenture as applicable to the Notes, the Opinion of Counsel referred to
therein shall be an independent counsel satisfactory to the Trustee, and the words “gain or loss” in the eighth line of Section 1404(2) shall be replaced by the words “income, gain or loss”. 

ARTICLE THREE 
 Covenants 
  

	Section 3.01.	Dividend and Other Payment Stoppages 

 So long as any Notes remain outstanding, (a) if the Company has given notice of its election to defer interest payments on the Notes but the related Deferral Period has not yet commenced, or
(b) a Deferral Period is continuing, the Company shall not, and shall not permit any Subsidiary to: 
 (i)
declare or pay any dividends or other distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any shares of capital stock of the Company; 

(ii) make any payment of principal of, or interest or premium, if any, on, or repay, purchase or redeem any of the
Company’s debt securities that rank upon the Company’s liquidation on a parity with or junior to the Notes; or 
 (iii) make any guarantee payments regarding any guarantee issued by the Company of securities of any Subsidiary if the guarantee ranks upon the Company’s liquidation on a parity with or junior to the
Notes; 

  
 10 

 provided, however, the restrictions in clauses (i), (ii) and (iii) above do not
apply to: 
 (A) any purchase, redemption or other acquisition of shares of its capital stock by the Company in
connection with: 
 (1) any employment contract, benefit plan or other similar arrangement with or for the
benefit of any one or more of its employees, officers, directors, consultants or independent contractors; 
 (2)
the satisfaction of the Company’s obligations pursuant to any contract entered into prior to the beginning of the applicable Deferral Period; 
 (3) a dividend reinvestment or shareholder purchase plan; or 
 (4)
the issuance of shares of the Company’s capital stock, or securities convertible into or exercisable for such shares, as consideration in an acquisition transaction, the definitive agreement for which is entered into prior to the applicable
Deferral Period; 
 (B) any exchange, redemption or conversion of any class or series of the Company’s
capital stock, or shares of the capital stock of one of its Subsidiaries, for any other class or series of the Company’s capital stock, or of any class or series of the Company’s indebtedness for any class or series of the Company’s
capital stock; 
 (C) any purchase of fractional interests in shares of the Company’s capital stock pursuant
to the conversion or exchange provisions of such shares or the securities being converted or exchanged; 
 (D)
any declaration of a dividend in connection with any shareholder rights plan, or the issuance of rights, stock or other property under any shareholder rights plan, or the redemption or purchase of rights pursuant thereto; or 

(E) any dividend in the form of stock, warrants, options or other rights where the dividend stock issuable upon exercise
of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks equally with or junior to such stock; or 
 (F) (i) any payment of current or deferred interest on Parity Securities that is made pro rata to the amounts due on such Parity Securities (including the Notes) and (ii) any payments of
principal or current or deferred interest on Parity Securities that, if not made, would cause the Company to breach the terms of the instrument governing such Parity Securities. 

For the avoidance of doubt, notwithstanding anything herein to the contrary, no terms of the Notes will restrict in any manner the
ability of any of the Subsidiaries to pay dividends or make any distributions to the Company or to any other Subsidiaries. 

  
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 ARTICLE FOUR 
 Redemption of the Notes 
  

	Section 4.01.	Redemption 

 (a) The Notes
shall be redeemable in accordance with the procedures set forth in Article Twelve of the Base Indenture: 
 (i)
in whole at any time or in part from time to time on or after March 15, 2018, at 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest to but excluding the Redemption Date, provided that no partial
redemption shall be effected unless (A) at least $25 million aggregate principal amount of the Notes, excluding any Notes held by the Company or any of its Affiliates, shall remain outstanding after giving effect to such redemption and
(B) all accrued and unpaid interest, including deferred interest, shall have been paid in full on all Outstanding Notes for all Interest Periods terminating on or before the Redemption Date; 

(ii) in whole, but not in part, at any time prior to March 15, 2018, within 90 days after the occurrence of a Tax
Event or a Rating Agency Event at the greater of (A) 100% of the principal amount of the Notes being redeemed and (B) the Make-Whole Redemption Price, in each case plus accrued and unpaid interest to but excluding the Redemption Date; or

 (iii) in whole, but not in part, at any time prior to March 15, 2018, within 90 days after the occurrence
of a Regulatory Capital Event at 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest to but excluding the Redemption Date. 
 (b) In the event the Notes are treated as “Tier 2 capital” (or its equivalent) under the capital guidelines of the Capital Regulator applicable to the Company, any redemption of the Notes shall
be subject to the Company’s receipt of any required prior approval from the Capital Regulator and to the satisfaction of any conditions set forth in those capital guidelines or any other applicable regulations of the Capital Regulator to the
redemption by the Company of the Notes. 
 ARTICLE FIVE 

Original Issue of Notes 
  

	Section 5.01.	Calculation of Original Issue Discount 

 If during any calendar year any original issue discount shall have accrued on the Notes, the Company shall file with each Paying Agent (including the Trustee if it is a Paying Agent) promptly at the end
of each calendar year (a) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on Outstanding Securities as of the end of such year and (b) such other specific information
relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time, or Treasury Regulations enacted thereunder, or other administrative or judicial guidance. 

  
 12 

 ARTICLE SIX 
 Supplemental Indentures 
  

	Section 6.01.	Supplemental Indentures without Consent of Holders 

 Solely for purposes of the Notes, Section 901 of the Base Indenture shall be deleted and replaced with the following: 
 “Section 901. Supplemental Indentures without Consent of Holders. 
 Without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may supplement or amend the Indenture for any of the following
purposes: 
 (1) to evidence the succession of another Person to the Company and the assumption by any such
successor of the covenants of the Company herein and in the Notes; or 
 (2) to add to or modify the covenants of
the Company for the benefit of the Holders of Notes or to surrender any right or power herein conferred upon the Company (including surrendering of the Company’s right to redeem the Notes upon the occurrence of the Rating Agency Event);
provided that no such amendment or modification may add Events of Default or acceleration events with respect to the Notes; or 
 (3) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Notes; or 

(4) to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any
other provision herein or in any supplemental indenture, or to make any other provisions with respect to matters or questions arising under this Indenture, provided such action shall not adversely affect the interests of the Holders of Notes
in any material respect; or 
 (5) to make any changes to the Indenture in order to conform the Indenture to the
final prospectus supplement provided to investors in connection with the offering of the Notes.” 
  

	Section 6.02.	Supplemental Indentures with Consent of Holders 

 Solely for purposes of the Notes, clauses (1) through (3) of Section 902(a) of the Base Indenture shall be deleted and replaced with the following clauses (1) through (6): 

“(1) change the Stated Maturity of any payment of principal of or interest (including any additional interest) on the
Notes; 
 (2) change the manner of calculating payments due on the Notes in a manner adverse to Holders;

  
 13 

 (3) reduce the requirements contained in the Indenture for quorum or voting;

 (4) change the Place of Payment for any payment on the Notes that is adverse to the Holders or change the
currency in which any payment on the Notes is payable; 
 (5) impair the right of any Holder to institute suit
for the enforcement of any payment on the Notes; 
 (6) reduce the percentage in principal amount of Outstanding
Notes, the consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any waiver of compliance with certain provisions of the Indenture or certain defaults hereunder and their
consequences; 
 (7) reduce the principal amount of, the rate of interest on or any premium payable upon the
redemption of the Notes; or 
 (8) modify any of the provisions of this Section.” 

ARTICLE SEVEN 
 Miscellaneous 
  

	Section 7.01.	Effectiveness 

 This
Supplemental Indenture will become effective upon its execution and delivery. 
  

	Section 7.02.	Successors and Assigns 

All covenants and agreements in the Base Indenture, as supplemented and amended by this Supplemental Indenture, by the Company shall bind
its successors and assigns, whether so expressed or not. 
  

	Section 7.03.	Effect of Recitals 

 The
recitals contained herein and in the Notes, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and the Trustee does not assume any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Supplemental Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of the Notes or the proceeds thereof. 

 

	Section 7.04.	Ratification of Indenture 

The Base Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental
Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. 

  
 14 

	Section 7.05.	Tax Treatment 

 The
Company and, by acceptance of the Notes or a beneficial interest in the Notes, each Holder and beneficial owner of a Note agree to treat the Notes as indebtedness for United States federal income tax purposes. 

 

	Section 7.06.	Governing Law 

 This
Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York. 
  

	Section 7.07.	Severability 

 If any
provision of the Base Indenture, as supplemented and amended by this Supplemental Indenture, shall be held or deemed to be or shall, in fact, be illegal, inoperative or unenforceable, the same shall not affect any other provision or provisions
herein contained or render the same invalid, inoperative or unenforceable to any extent whatever. 
  

	Section 7.08.	Consequential Damages and Force Majeure 

 (a) In no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of
whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
 (b) In no
event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services, so
long as the Trustee maintains and updates from time to time business continuation and disaster recovery procedures that it determines meet the standards of the industry; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 

* * * 

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

  
 15 

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

			
	PRUDENTIAL FINANCIAL, INC.
		
	By:	 	 /s/ Jurgen Muhlhauser

	Name:	 	Jurgen Muhlhauser
	Title:	 	Vice President and Assistant Treasurer

 [Signature Page to Eighth Supplemental Indenture] 

 
			
	 THE BANK OF NEW YORK MELLON,
 as Trustee

		
	By:	 	 /s/ Francine Kincaid

	Name:	 	Francine Kincaid
	Title:	 	Vice President

 [Signature Page to Eighth Supplemental Indenture] 

 EXHIBIT A 

FORM OF NOTE 
 THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO
TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	No.	  	Principal Amount: $        
		
	Issue Date:	  	CUSIP: 744320 706

 PRUDENTIAL FINANCIAL, INC. 
 5.70% JUNIOR SUBORDINATED NOTES DUE 2053 
 Prudential Financial, Inc., a
corporation organized and existing under the laws of the State of New Jersey (hereinafter called the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby
promises to pay to                      or registered assigns, the principal sum of         
dollars ($        ) on March 15, 2053 (the “Maturity Date”), or if such day is not a Business Day (as defined below), the following Business Day. 

The Company further promises to pay interest on said principal sum from and including March 14, 2013 to but excluding March 15,
2053, at the annual rate of 5.70%, (computed on the basis of a 360-day year consisting of twelve 30-day months) quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, beginning on
June 15, 2013 (each, an “Interest Payment Date”), subject to deferral as set forth herein. In the event that any Interest Payment Date falls on a day that is not a Business Day, the interest payment due on that date will be
postponed to the next day that is a Business Day, and no interest will accrue as a result of that postponement. Defaulted Interest and interest deferred pursuant to said Indenture will bear additional interest to the extent permitted by law, at the
rate of 5.70% per 

  
 A-1

 
annum, from and including the relevant Interest Payment Date, compounded on each subsequent Interest Payment Date. A “Business Day” shall mean any day other than (i) a
Saturday or Sunday, (ii) a day on which banking institutions in The City of New York are authorized or required by law or executive order to remain closed or (iii) a day on which the Corporate Trust Office is closed for business.

 The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, as provided in said
Indenture, will be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be
March 1, June 1, September 1 and December 1 (whether or not a Business Day), as the case may be, immediately preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for shall
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid, in the case of deferred interest, as provided in the following paragraph, and otherwise to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days
prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in said Indenture. 
 So long as no Event of Default with respect to this Security has
occurred or is continuing, the Company shall have the right at any time during the term of this Security to defer payment of interest on this Security for one or more consecutive Interest Periods that do not exceed five years for any single Deferral
Period, during which the Company shall have the right to make partial payments of interest on any Interest Payment Date, and at the end of which the Company shall pay all interest then accrued and unpaid; provided, however, that no
Deferral Period shall extend beyond the Maturity Date or the earlier accelerated maturity date arising from an Event of Default or redemption of this Security. Upon the termination of any Deferral Period and upon the payment of all deferred interest
then due, the Company may elect to begin a new Deferral Period, subject to the above requirements. 
 So long as any Securities
of this series remain outstanding, if the Company has given notice of its election to defer interest payments on the Securities but the related Deferral Period has not yet commenced or a Deferral Period is continuing, the Company shall not, and
shall not permit any Subsidiary to, (i) declare or pay any dividends or other distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any shares of the Company’s capital stock, (ii) make any
payment of principal of, or interest or premium, if any, on or repay, purchase or redeem any debt securities of the Company that rank upon the Company’s liquidation on a parity with this Security (including the Company’s 8.875%
Fixed-to-Floating Rate Junior Subordinated Notes due 2068, the Company’s 9.0% Junior Subordinated Notes due 2068, the Company’s 5.875% Fixed-to-Floating Rate Junior Subordinated Notes due 2042, the Company’s 5.625% Fixed-to-Floating
Rate Junior Subordinated Notes due 2043 and the Company’s 5.75% Junior Subordinated Notes due 2052 (the”Pari Passu Securities”) or junior to this Security or (iii) make any guarantee payments regarding any guarantee
issued by the Company of securities of any Subsidiary if the guarantee ranks upon the Company’s 

  
 A-2

 
liquidation on a parity with or junior to this Security (other than (a) any purchase, redemption or other acquisition of shares of its capital stock in connection with (1) any
employment contract, benefit plan or other similar arrangement with or for the benefit of any one or more of its employees, officers, directors, consultants or independent contractors, (2) the satisfaction of the Company’s obligations
pursuant to any contract entered into prior to the beginning of the applicable Deferral Period, (3) a dividend reinvestment or shareholder purchase plan, or (4) the issuance of shares of the Company’s capital stock, or securities
convertible into or exercisable for such shares, as consideration in an acquisition transaction entered into prior to the applicable Deferral Period, (b) any exchange, redemption or conversion of any class or series of the Company’s
capital stock, or the capital stock of one of its Subsidiaries, for any other class or series of its capital stock, or of any class or series of its indebtedness for any class or series of its capital stock, (c) any purchase of fractional
interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such shares or the securities being converted or exchanged, (d) any declaration of a dividend in connection with any shareholder rights
plan, or the issuance of rights, stock or other property under any shareholder rights plan, or the redemption or purchase of rights pursuant thereto, (e) any dividend in the form of stock, warrants, options or other rights where the dividend
stock or stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks equally with or junior to such stock, or (f) (1) any payment of current or deferred
interest on Parity Securities that is made pro rata to the amounts due on such Parity Securities (including the Notes), and (2) any payments of principal or current or deferred interest on Parity Securities that, if not made, would cause the
Company to breach the terms of the instrument governing such Parity Securities. 
 The Company shall give written notice of its
election to commence or continue any Deferral Period to the Trustee and the Holders of all Securities of this series then Outstanding at least one Business Day and not more than 60 Business Days before the next Interest Payment Date. Such notice
shall be given to the Trustee and the Holder of this Security at such Holder’s address appearing in the Security Register by first-class mail, postage prepaid. 
 Payment of the principal of (and premium, if any) and interest on this Security will be made at the paying agency office or agency of the Company maintained for that purpose in the United States, in such
coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that, at the option of the Company, payment of interest may be made (i) by
check mailed to the address of the Person entitled thereto as such address shall appear in the Securities Register or (ii) by wire transfer in immediately available funds at such place and to such bank account number as may be designated by the
Person entitled thereto as specified in the Securities Register in writing not less than ten days before the relevant Interest Payment Date. 
 The indebtedness evidenced by this Security is, to the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all Senior Indebtedness, and this
Security is issued subject to the provisions of the Indenture with respect thereto. Each Holder of this Security, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on such
Holder’s behalf to take such actions as may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee such Holder’s attorney-in-fact for any and all such purposes. Each Holder

  
 A-3

 
hereof, by such Holder’s acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Indebtedness,
whether now outstanding or hereafter incurred, and waives reliance by each such Holder upon said provisions. 
 The Company and,
by acceptance of this Security or a beneficial interest in this Security, each Holder and beneficial owner of this Security agree to treat this Security as indebtedness for United States federal income tax purposes. 

By acceptance of this Security or a beneficial interest in this Security, each Holder hereof and any person acquiring a beneficial
interest herein, agree that either (A) no portion of the assets used by such purchaser to acquire and hold this Security or a beneficial interest in this Security constitutes assets of any (i) employee benefit plan subject to Title I of
the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”), (ii) any plan, individual retirement accounts and other arrangement subject to Section 4975 of the U.S. Internal Revenue Code of 1986, as
amended (the “Code”) or provisions under any federal, state, local, non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Code (collectively, “Similar Laws”), and
(iii) entities whose underlying assets are considered to include “plan assets” of any such plan, account or arrangement within the meaning of Section 3(42) of ERISA as modified by 29 CFR § 2510.3-101 or under any applicable
Similar Laws or (B) the purchase and holding of this Security or a beneficial interest in this Security by such purchaser will not constitute a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code
or a similar violation under any applicable Similar Laws. 
 Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose. 

  
 A-4

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

			
	PRUDENTIAL FINANCIAL, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	Attest:	 	  

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within mentioned Indenture. 

Date: 
  

			
	 THE BANK OF NEW YORK MELLON,
 as Trustee

		
	By	 	  

		 	Authorized Officer

  
 A-5

 (FORM OF REVERSE OF NOTE) 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under the Indenture, dated as of June 17, 2008 (herein called the “Base Indenture”), between the Company and The Bank of New York Mellon (formerly known as The Bank of New York), as
trustee (the “Trustee”), as amended and supplemented by the Eighth Supplemental Indenture, dated as of March 14, 2013, between the Company and the Trustee (the “Supplemental Indenture”, and together with the
Base Indenture, the “Indenture”), to which Indenture and all other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Trustee, the Company, the holders of the Senior Indebtedness and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. By the terms of the Indenture, the Securities are issuable in
series that may vary as to amount, date of maturity, rate of interest, rank and in any other respect provided in the Indenture. 

All terms used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

The Securities of this series shall be redeemable at the election of the Company in accordance with the terms of the Indenture. In
particular, this Security is redeemable: 
 (a) in whole at any time or in part from time to time on or after
March 15, 2018, at a redemption price equal to 100% of the principal amount of the Securities being redeemed plus accrued and unpaid interest to but excluding the Redemption Date; provided that if the Securities of this series are not
redeemed in whole, at least $25 million aggregate principal amount of the Outstanding Securities of this series remain outstanding after giving effect to such redemption; 

(b) in whole, but not in part, at any time prior to March 15, 2018, within 90 days after the occurrence of a Tax
Event or a Rating Agency Event, at a redemption price equal to the greater of (i) 100% of the principal amount of the Securities being redeemed or (ii) the Make-Whole Redemption Price, in each case plus accrued and unpaid interest to but
excluding the Redemption Date; or 
 (c) in whole, but not in part, at any time prior to March 15, 2018,
within 90 days after the occurrence of a Regulatory Capital Event, at a redemption price equal to 100% of the principal amount of the Securities being redeemed plus accrued and unpaid interest to but excluding the Redemption Date. 

Notwithstanding the foregoing, the Company may not redeem the Securities of this series in part unless all accrued and
unpaid interest, including deferred interest, has been paid in full on all Outstanding Securities of this series for all Interest Periods terminating on or before the Redemption Date. 

In the event of a redemption of this Security in part only, a new Security or Securities of this Series and of a like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 

  
 A-6

 No sinking fund is provided for the Securities. 

The Indenture contains provisions for satisfaction and discharge of the entire indebtedness of this Security upon compliance by the
Company with certain conditions set forth in the Indenture. 
 The Indenture permits, with certain exceptions as therein
provided, the Company and the Trustee at any time to enter into a supplemental indenture or indentures for the purpose of modifying in any manner the rights and obligations of the Company and of the Holders of the Securities, with the consent of the
Holders of not less than a majority in principal amount of the Outstanding Securities to be affected by such supplemental indenture. The Indenture also contains provisions permitting Holders of specified percentages in principal amount of the
Securities at the time Outstanding, on behalf of the Holders of all Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether
or not notation of such consent or waiver is made upon this Security. 
 As provided in and subject to the provisions of the
Indenture, if an Event of Default as set forth in the Indenture occurs, the principal amount of the Securities shall automatically become due and payable; provided that in any such case the payment of principal and interest on such Securities
shall remain subordinated to the extent provided in Article Eleven of the Base Indenture. 
 No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest on this Security at the times, place
and rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Securities Register, upon surrender of this Security for registration of transfer at the office or agency of the Company maintained under Section 1002 of the Base Indenture
duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Securities Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new
Securities, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to
due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee shall have the right to treat and shall treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

  
 A-7

 The Securities are issuable only in registered form without coupons in minimum denominations
of $25 and any integral multiples of $25 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Securities are exchangeable for a like aggregate principal amount of Securities of a different
authorized denomination, as requested by the Holder surrendering the same. 
 THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

  
 A-8

 ASSIGNMENT 
 FOR VALUE RECEIVED, the undersigned assigns and transfers this 
 Security to: 

 
  
  

 
  

 
  

 
 (Insert assignee’s social
security or tax identification number) 
  
  

 
  
 (Insert address and zip code of assignee) 
 hereby irrevocably constituting and appointing
                                        
agent to transfer this Security on the books of the Securities Registrar. The agent may substitute another to act for him or her. 
  

					
	Dated:	 		 	Signature:
			
		 		 	  

			
		 		 	Signature Guarantee:

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

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Securities Registrar,
which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Securities Registrar in addition to,
or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 A-9EX-10.22

 Exhibit 10.22 

 
  
 FIRST AMENDMENT 
 TO THE 

LICENSE AND DISTRIBUTION AGREEMENT 
 between 
 CHIESI FARMACEUTICI S.p.A. 

and 
 CORNERSTONE
THERAPEUTICS INC. 
 September 28, 2010 
  

 

 FIRST AMENDMENT 

This FIRST AMENDMENT (this “First Amendment”) is made as of this 28th day of September, 2010 between Chiesi
Farmaceutici S.p.A. a company incorporated under the laws of Italy, with its principal place of business at Via Palermo 26/A, 43122 Parma, Italy (“Chiesi”) and Cornerstone Therapeutics, Inc. a company incorporated under
the laws of Delaware, with its principal place of business at 1255 Crescent Green Drive, Suite 250, Cary, North Carolina 27518, USA (“Cornerstone”, and together with Chiesi, the “Parties”, each a
“Party”). 
 WITNESSETH 
 WHEREAS, Chiesi has entered into a License and Distribution Agreement dated as of May 6, 2009, with Cornerstone (the “Agreement”), pursuant to which Cornerstone has obtained a
license from Chiesi for the purpose of importing, storing, handling, promoting, distributing, marketing, offering for sale and selling the Product under the Trademark in the Territory; 

WHEREAS, Chiesi and Cornerstone have agreed to introduce a new provision in the Agreement, pursuant to which Chiesi shall grant
Cornerstone a right to use its Product’s domain name “www.Curosurf.com” in order to allow Cornerstone to perform promotion and marketing activities on the Product through its internet web site. 

WHEREAS, Chiesi and Cornerstone consequently wish to amend the Agreement; 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and intending to be bound, the
Parties hereby agree as follows, it being understood that the definitions used herein shall have the same meaning of the definitions set forth in the Agreement, unless the context clearly indicates otherwise: 

 

	 	8.6	Product Web Marketing 

8.6.1 In consideration of US $1 (United States One Dollar), receipt of which is hereby acknowledged by Chiesi, Chiesi hereby grants to
Cornerstone the right to use Chiesi’s Product domain name “www.Curosurf.com” (“Domain Name”) solely in connection with the promotion and marketing of the Product in the Territory through Cornerstone’s dedicated
internet web site in connection with the Domain Name (“Web Site”). 
 8.6.2 Cornerstone shall be solely responsible
for creating, placing, removing, operating, uploading, and maintaining, at its costs and expenses, the Web Site on which publish or display any marketing and/or promotional materials and/or information which in any way mentions, describes, contains,
depicts or otherwise referring to the Product and/or the Trademark in the Territory (“Product Materials”). 

  
 2 

 8.6.3 Cornerstone acknowledges that Chiesi or its Affiliate or licensors (i) are the
owner of all rights, title and interest to the Domain Name and all associated goodwill and (ii) shall be solely responsible for maintaining, at its costs and expenses, the registration of the Domain Name in the Territory. Cornerstone further
acknowledges that Chiesi may terminate this Agreement in accordance with the provisions of Section 12.2, if Cornerstone takes any action which materially impairs any such right, title or interest or challenges the validity, scope or
enforceability of the Domain Name. 
 8.6.4 As a condition of the rights granted herein, Cornerstone must obtain Chiesi’s
prior written approval prior to publication or display on the Web Site of any Product Materials. Cornerstone shall submit to Chiesi clear and readable color copies of such Product Materials, including without limitation, web pages, together with
sufficiently detailed descriptions or samples of all concepts, layouts, designs, copy/content, structure/icons, and functionality to be utilized for the proposed web pages with a truthful, complete, and accurate description of how Cornerstone plans
to use such web page. Copies, samples or description of the Product Materials may be retained by Chiesi, at its option. Chiesi reserves the absolute and unconditional right to control and to approve any and all Product Materials for the Web Site.
Any approval, consent, or authorization by Chiesi shall be given or withheld in Chiesi’s sole discretion, and shall not be valid unless such approval, consent, or authorization is obtained by Cornerstone via electronic mail at one of the
addresses indicated below (“Approval(s)”). Chiesi shall use reasonable efforts to respond to each request for Approval (a) within ten (10) business days of its receipt of such request in the ordinary course of business; or,
(b) within two (2) business days of request if the Agency requires a modification to the Web Site and/or to the Product Materials. Chiesi’s silence or failure to respond to a request for approval within such period shall be deemed an
Approval. 
 Electronic Mail Approval Request should be sent to: 

jason.beyer@crtx.com 
 rob.walton@crtx.com 
 alan.roberts@crtx.com 

8.6.5 In no event Chiesi shall be liable for any costs, expenses, losses, or damages resulting from any Approval by Chiesi. Chiesi’s
Approval shall in no way waive, modify, or limit Cornerstone’s obligations to comply with all applicable laws, rules and regulation or relevant guidelines for the advertising of pharmaceutical products on internet in the Territory. Any of such
Approvals shall not constitute or imply any representation or belief by Chiesi that the Product Materials or actions so approved comply with any applicable laws, rules and regulations or relevant guidelines for the advertising of pharmaceutical
products on internet in the Territory. 

  
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 8.6.6 Cornerstone will not be permitted to link from Cornerstone’s web pages featuring
the Products to any third party web page; provided, however, that Cornerstone will be permitted to link other pages of Cornerstone’s web site to third party web pages. 
 For the avoidance of doubts, the Parties acknowledge that users from other countries other than the Territory may have online access to the Web Site and therefore to the Product Materials and nothing in
this Agreement shall be construed to prohibit such users from doing so. 
 8.6.7 The rights granted to Cornerstone under this
Article 8.6 may not be sublicensed or otherwise transferred in whole or in part without Chiesi prior written approval, save that Cornerstone may grant a limited sub-licence of the rights in this Article 8.6 to a third party hosting the Product
Materials provided that (i) Cornerstone will remain responsible for obtaining all Approvals as required in Section 8.6.4 above, (ii) the grant of such sub-licences shall not relieve Cornerstone of any of Cornerstone’s obligations
under this Agreement, and Cornerstone shall remain primarily liable under this Agreement. 
 8.6.8 Cornerstone will not attack,
dispute, or contest the validity or the ownership of the Domain Name or any registrations issued or issuing with respect thereto, both during the Term of this Agreement and thereafter. Cornerstone’s use of the Domain Name shall inure to the
benefit of Chiesi, for all purposes including domain name registrations. In the event Cornerstone acquires any rights relating to the Domain Name for any reason, Cornerstone agrees to assign, and hereby does assign, at no cost, all such rights,
together with any related goodwill, to Chiesi. Cornerstone shall use its best efforts not to do any act which would or might endanger, destroy or similarly affect the value of the goodwill pertaining to the Domain Name nor do any act which might
support a petition to cancel any registration relating to the Domain Name or cause the applicable registrar to require a disclaimer of exclusive rights in such Domain Name nor assist any other person or other entity directly or indirectly in such
act. Cornerstone will immediately execute any documents presented to it by Chiesi to confirm Chiesi’s ownership of all such rights. 
 8.6.9 Chiesi will be entitled to conduct all enforcement proceedings relating to the Domain Name and shall at its sole discretion decide what action, if any, to take in respect of any infringement or
alleged infringement of the Domain Name or passing-off or any other claim or counter-claim brought or threatened in respect of the use or registration of the Domain Name Any such proceedings shall be conducted at Chiesi’s expense and for its
own benefit. At Chiesi’s written request to Cornerstone and Chiesi’s expense, Cornerstone shall reasonably cooperate with Chiesi in such efforts. Chiesi shall at its own discretion decide any settlement for any such proceedings or claims.

 8.6.10 Chiesi elects not to exercise its right pursuant to Section 8.6.9, Chiesi shall promptly notify Cornerstone in
writing of its election, and of the circumstance of such infringement. In such event Cornerstone shall have the right, but not the obligation, to take any and all action, at its own cost and expense, to obtain a discontinuance of the alleged
infringement and/or to bring suit against such infringer. 

  
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 8.6.11 Other than the right to use the Domain Name, Cornerstone shall not acquire any
rights to or under the Domain Name. Except as set forth herein and therein, Cornerstone shall have no right to use others domain names of Chiesi except as provided in writing in advance by Chiesi. Upon termination of this Agreement, Cornerstone will
discontinue all use of the Domain Name and discontinue all representation that it is or was an authorized representative of Chiesi. This Section 8.6.11 shall survive the expiration or termination of this Agreement. Without prejudice to the
foregoing, Chiesi shall have the right, at any time and for whatsoever reason, upon fifteen (15) days written notice, to require Cornerstone, to immediately stop any and all use of the Domain Name in connection with the Web Site and the Product
Materials. 
 Except as specifically amended herein, the Agreement remains in full force and effect with respect to all other terms and
conditions. 
 IN WITNESS THEREOF, the Parties hereto have caused this First Amendment to be duly executed in duplicate by their
authorized officers as of the date hereof. 
  

									
	CHIESI FARMACEUTICI S.p.A.	 		 	CORNERSTONE THERAPEUTICS INC.
					
	By:	 	 /s/ A. Chiesi
	 		 	By:	 	 /s/ J. Beyer

	Name:	 	Dr. Alberto Chiesi	 		 	Name:	 	Jason Beyer
	Title:	 	President	 		 	Title:	 	Product Manager

  
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