Document:

Exhibit 10.1

Exhibit 10.1

PPL WEM HOLDINGS PLC

$960,000,000

$460,000,000 3.900% Senior Notes Due 2016

$500,000,000 5.375% Senior Notes Due 2021

PURCHASE AGREEMENT

April 18, 2011          

Barclays Capital Inc.

745 Seventh Avenue

New York, NY 10019

Credit Suisse Securities (USA) LLC

11 Madison Avenue

New York, NY 10010-3629

Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park

New York, NY 10036

RBS Securities Inc.

600 Washington Boulevard

Stamford, CT 06901

As Representatives of the several Purchasers listed on Schedule A hereto

Ladies and Gentlemen:

1. Introductory. PPL WEM Holdings plc, a public limited company organized under the laws of
England and Wales (the “Company”), agrees with the several purchasers named in Schedule A
hereto (the “Purchasers”), for whom you are acting as representatives (the “Representatives”),
subject to the terms and conditions stated herein, to issue and sell to the several Purchasers
U.S.$460,000,000 aggregate principal amount of its 3.900% Senior Notes due 2016 (the “2016 Notes”)
and U.S.$500,000,000 aggregate principal amount of its 5.375% Senior Notes due 2021 (the “2021
Notes” and, together with the 2016 Notes, the “Offered Securities”), to be issued under an
indenture, to be dated as of or before the Closing Date (as defined below), as supplemented by
Supplemental Indenture No. 1, to be dated as of or before the Closing Date (the “Indenture”),
between the Company and The Bank of New York Mellon, as trustee (the “Trustee”).

 

 

 

The Company hereby agrees with the several Purchasers as follows:

2. Representations and Warranties of the Company. The Company represents and warrants to,
and agrees with, the several Purchasers that:

(a) Offering Memoranda; Certain Defined Terms. The Company has prepared or will
prepare a Preliminary Offering Memorandum and a Final Offering Memorandum (each as defined
below).

For purposes of this Agreement:

“Applicable Time” means 5:30 pm (New York time) on the date of this Agreement.

“Closing Date” has the meaning set forth in Section 3 hereof.

“Commission” means the United States Securities and Exchange Commission.

“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

“Final Offering Memorandum” means the final offering memorandum relating to the
Offered Securities to be offered by the Purchasers that discloses the offering price and other
final terms of the Offered Securities and is dated as of the date of this Agreement (even if
finalized and issued subsequent to the date of this Agreement).

“Free Writing Communication” means a written communication (as such term is defined in Rule
405 of the Securities Act) that constitutes an offer to sell or a solicitation of an offer to buy
the Offered Securities and is made by means other than the Preliminary Offering Memorandum or the
Final Offering Memorandum.

“General Disclosure Package” means the Preliminary Offering Memorandum together with any
Issuer Free Writing Communication existing at the Applicable Time and the information in which is
intended for general distribution to prospective investors, as evidenced by its being specified as
included in the General Disclosure Package in Schedule B hereto.

“Issuer Free Writing Communication” means a Free Writing Communication prepared by or on
behalf of the Company, used or referred to by the Company or containing a description of the final
terms of the Offered Securities or of their offering, in the form retained in the Company’s
records.

“Preliminary Offering Memorandum” means the preliminary offering memorandum, dated
April 18, 2011, relating to the Offered Securities to be offered by the Purchasers.

“Rules and Regulations” means the rules and regulations of the Commission.

“Securities Act” means the United States Securities Act of 1933, as amended.

“Securities Laws” means, collectively, the Securities Act, the Exchange Act and the Rules and
Regulations.

“Supplemental Marketing Material” means any Issuer Free Writing Communication other than any
Issuer Free Writing Communication specified in Schedule B hereto. Supplemental
Marketing Materials include, but are not limited to, any Issuer Free Writing Communication listed
on Schedule C hereto.

 

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Unless otherwise specified, a reference to a “rule” is to the indicated rule under the
Securities Act.

(b) Disclosure. As of the date thereof and the Closing Date, the Final Offering
Memorandum does not and will not include any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. At the Applicable Time and as
of the Closing Date, neither (i) the General Disclosure Package, nor (ii) any individual
Supplemental Marketing Material, when considered together with the General Disclosure
Package, included, or will include, any untrue statement of a material fact or omitted, or
will omit, to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The
preceding two sentences do not apply to statements in or omissions from the Preliminary
Offering Memorandum, the Final Offering Memorandum, the General Disclosure Package or any
Supplemental Marketing Material based upon written information furnished to the Company by
any Purchaser through the Representatives specifically for use therein, it being understood
and agreed that the only such information is that described as such in Section 8(b) hereof.

(c) Good Standing of the Company. The Company has been duly organized, is validly
existing as a public limited company under the laws of England and Wales, has the power and
authority to own its property and to conduct its business as described in the General
Disclosure Package and the Final Offering Memorandum and does not transact business in any
jurisdiction other than the United Kingdom.

(d) Subsidiaries. Each of Western Power Distribution (East Midlands) plc (“WPD East
Midlands”) and Western Power Distribution (West Midlands) plc (“WPD West Midlands”) has been
duly incorporated and is existing under the laws of the jurisdiction of its incorporation,
with power and authority to own its properties and conduct its business as described in the
General Disclosure Package and the Final Offering Memorandum and does not transact business
in any jurisdiction other than in the United Kingdom; all of the issued and outstanding
capital stock of WPD East Midlands and WPD West Midlands has been duly authorized and
validly issued and is fully paid and nonassessable; and the capital stock of WPD East
Midlands and WPD West Midlands, directly or through subsidiaries, is owned free from liens,
encumbrances and defects; except as set out on Schedule D hereto, the Company has no direct
and indirect subsidiaries.

(e) Financial Statements. The audited combined financial statements for the entities
set out on Schedule E hereto (collectively, the “WPD Midlands Group”), together with the
related notes and schedules, set forth in the General Disclosure Package and the Final
Offering Memorandum have been prepared in all material respects in accordance with generally
accepted accounting principles in the United Kingdom (“UK GAAP”) consistently applied
throughout the periods involved, except as disclosed therein. The assumptions used in
preparing the pro forma financial statements included in the General Disclosure Package and
the Final Offering Memorandum provide a reasonable basis for presenting the significant
effects directly attributable to the transactions or events described therein, the related
pro forma adjustments give appropriate effect to those assumptions, and the pro forma
columns therein reflect the proper application of those adjustments to the corresponding
historical financial statement amounts.

(f) Authorization of Agreement. This Agreement has been duly authorized, executed and
delivered by the Company.

 

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(g) Securities. The Offered Securities have been duly authorized by the Company and,
at the Closing Date, will have been duly executed by the Company; when the Offered
Securities
have been (A) authenticated and delivered by the Trustee in the manner provided for in
the Indenture and (B) issued and delivered by the Company against payment of the
consideration therefor as provided in this Agreement, the Offered Securities will constitute
valid and binding obligations of the Company, enforceable in accordance with their terms,
except to the extent limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization or moratorium laws or by other laws now or hereafter in effect relating to or
affecting the enforcement of mortgagees’ and other creditors’ rights and by general
equitable principles (regardless of whether considered in a proceeding in equity or at law),
such laws and principles of equity being hereinafter called, collectively the
“Enforceability Exceptions”; the Offered Securities will be in the form established pursuant
to, and will be entitled to the benefits of, the Indenture; and the Offered Securities will
conform in all material respects to the statements relating thereto contained in the General
Disclosure Package and the Final Offering Memorandum.

(h) Indenture. The Indenture has been duly authorized by the Company and at the
Closing Date, the Indenture will have been duly executed and delivered by the Company, and
assuming due authorization, execution and delivery of the Indenture by the other parties
thereto, the Indenture will constitute a valid and legally binding obligation of the Company
enforceable in accordance with its terms except to the extent limited by the Enforceability
Exceptions and the Indenture will conform in all material respects to the statements
relating thereto contained in the General Disclosure Package and the Final Offering
Memorandum.

(i) Investment Company Act. The Company is not, and after giving effect to the
offering and sale of the Offered Securities and the application of the proceeds thereof as
described in the General Disclosure Package and the Final Offering Memorandum, will not be
an “investment company” as such term is defined in the United States Investment Company Act
of 1940, as amended.

(j) Absence of Manipulation; General Solicitation. Neither the Company nor any
affiliate (as defined in Rule 501(b) of Regulation D under the Securities Act, an
“Affiliate”) of the Company has directly, or through any agent, (i) sold, offered for sale,
solicited offers to buy or otherwise negotiated in respect of, any security (as defined in
the Securities Act) which is or will be integrated with the sale of the Offered Securities
in a manner that would require the registration under the Securities Act of the Offered
Securities or (ii) engaged in any form of general solicitation or general advertising in
connection with the offering of the Offered Securities (as those terms are used in
Regulation D under the Securities Act) or in any manner involving a public offering within
the meaning of Section 4(2) of the Securities Act.

(k) No Directed Selling Efforts. None of the Company, its Affiliates or any person
acting on its or their behalf has engaged or will engage in any directed selling efforts
(within the meaning of Regulation S) with respect to the Offered Securities and the Company
and its Affiliates and any person acting on its or their behalf have complied and will
comply with the offering restrictions requirement of Regulation S, except no representation,
warranty or agreement is made by the Company in this paragraph with respect to the
Purchasers.

(l) No Registration. Assuming the accuracy of the representations and warranties of
the Purchasers contained in Section 4 below and their compliance with their agreements set
forth therein, it is not necessary in connection with the offer, sale and delivery of the
Offered Securities to the Purchasers in the manner contemplated by this Agreement to
register the Offered Securities under the Securities Act or to qualify the Indenture under
the United States Trust Indenture Act of 1939, as amended.

 

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(m) Rule 144A. The Offered Securities satisfy the requirements set forth in Rule
144A(d)(3) under the Securities Act.

(n) Absence of Further Requirements. No consent, approval, authorization, order,
registration or qualification of or with any United States federal, state or local, or
United Kingdom governmental agency or body or any United States federal, state or local, or
United Kingdom, court is required to be obtained by the Company for the consummation of the
transactions contemplated by this Agreement and the Indenture in connection with the
offering, issuance and sale of the Offered Securities by the Company, or the performance by
the Company of its obligations hereunder or thereunder,  except for (i) such as
have been obtained, (ii) such as may be required under the Blue Sky laws of any jurisdiction
or (iii) as required under the rules and regulations of the Luxembourg Stock Exchange (the
“LSE”) with respect to the listing thereon of the Offered Securities.

(o) Absence of Defaults and Conflicts Resulting from Transaction. Neither the
execution and delivery of this Agreement nor the transactions contemplated by this Agreement
and the Indenture (nor any supplements thereto) in connection with the offering, issuance
and sale of the Offered Securities, will violate or breach, or constitute a default under,
(i) any law or any regulation, order, writ, injunction or decree of any court or
governmental instrumentality applicable to the Company, (ii) any of the terms and provisions
of the memorandum of association or public limited company articles of association of the
Company or (iii) any agreement or instrument to which the Company or any of its subsidiaries
is a party or by which it is bound, including but not limited to the Electricity
Distribution License of WPD East Midlands and WPD West Midlands, respectively, except in the
case of clauses (i) and (iii) above, for such violations, breaches or defaults that would
not individually or in the aggregate have a material adverse effect on the ability of the
Company to perform its obligations hereunder.

(p) Possession of Licenses and Permits. The Company and its subsidiaries possess, and
are in compliance with the terms of all licenses (“Licenses”) required to the conduct of the
business now conducted or proposed in the General Disclosure Package and the Final Offering
Memorandum to be conducted by them, except where the failure to possess such Licenses would
not have a material adverse effect on the Company and its subsidiaries, taken as a whole.
To the knowledge of the Company, after having made reasonable inquiry, neither the Company
nor its subsidiaries have received any statutory notices of proposed license revocation or
modification of any Licenses that, if determined adversely to the Company or any of its
subsidiaries, would individually or in the aggregate have a material adverse effect on the
Company and its subsidiaries, taken as a whole.

(q) Internal Controls. The Company maintains systems of internal accounting controls
sufficient to provide reasonable assurance that transactions are executed in accordance with
management’s authorizations and transactions are recorded as necessary to permit preparation
of financial statements.

(r) No Material Adverse Change in Business. Since the respective dates as of which
information is given in the General Disclosure Package and the Final Offering Memorandum,
except as otherwise stated therein or contemplated thereby, there has been no material
adverse change, or event or occurrence that would result in a material adverse change in the
financial position or results of operations of the Company and its subsidiaries taken as a
whole.

 

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(s) Ratings. No “nationally recognized statistical rating organization” as such term
is defined for purposes of Section 3(a)(62) under the Exchange Act (i) has imposed (or has
informed the Company or its subsidiaries that it is considering imposing) any condition
(financial or otherwise) on the Company’s or its applicable subsidiaries retaining any
rating assigned to the Company or its applicable subsidiaries or any securities of the
Company or its applicable subsidiaries that are so rated or (ii) has indicated to the
Company or its subsidiaries that it is considering any of the actions described in Section
7(b)(ii) hereof.

(t) Unlawful Use of Funds. Neither the Company nor any of its subsidiaries nor any
director, officer, agent, employee or other person associated with or acting on behalf of
the Company or any of its subsidiaries has to the best of its knowledge (i) used any
corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity, (ii) made any direct or indirect unlawful payment to any
government official or employee from corporate funds, (iii) violated or is in violation of
any provision of the Prevention of Corruption Act 1906 and the Prevention of Corruption Act
1916, as amended, or similar law of any other relevant jurisdiction where the Company
conducts its business or (iv) made any bribe, rebate, payoff, influence payment, kickback or
other unlawful payment.

(u) Compliance with Anti-Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance in all material respects
with the money laundering statutes of the United Kingdom and the European Union, the rules
and regulations thereunder and any related or similar rules, regulations or guidelines
issued, administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Company or any of its subsidiaries
with respect to the Money Laundering Laws is pending or, to the best knowledge of the
Company, threatened.

(v) No Sanctions. Neither the Company nor any of its subsidiaries nor, to the
knowledge of the Company, any director, officer, agent, employee or affiliate of the Company
or any of its subsidiaries is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the United States Treasury Department (“OFAC”); and the
Company will not directly or indirectly use the proceeds of the offering, or lend,
contribute or otherwise make available such proceeds, to any subsidiary, joint venture
partner or other person or entity, for the purpose of financing the activities of any person
currently subject to any U.S. sanctions administered by OFAC.

(w) Use of Proceeds. The Company will use the net proceeds received in connection
with the sale of the Offered Securities pursuant to this Agreement in the manner described
in the “Use of Proceeds” section of the General Disclosure Package.

3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company
agrees to sell to the several Purchasers, and each of the Purchasers agrees, severally and not
jointly, to purchase from the Company, at a purchase price of 99.295% of the principal amount of
the 2016 Notes and 99.325% of the principal amount of the 2021 Notes, the respective aggregate
principal amounts of the 2016 Notes and the 2021 Notes set forth opposite the names of the several
Purchasers in Schedule A hereto.

 

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The Company will deliver against payment of the purchase price the Offered Securities to be
purchased by each Purchaser hereunder and to be offered and sold by each Purchaser in reliance on
Rule
144A (the “144A Securities”) in the form of one or more permanent global securities in definitive
form without interest coupons (the “Restricted Global Securities”) deposited with the Trustee as
custodian for DTC and registered in the name of Cede & Co., as nominee for the Depository Trust
Company (“DTC”).
The Company will deliver against payment of the purchase price the Offered Securities to be offered
and sold by the Purchasers in reliance on Regulation S (the “Regulation S Securities”) in the form
of one or more global Securities in registered form without interest coupons (the “Regulation S
Global Securities”) which will be deposited with the Trustee as custodian for DTC for the
respective accounts of DTC participants, including the Euroclear System (“Euroclear”), and
Clearstream Banking, société anonyme (“Clearstream, Luxembourg”), and registered in the name of
Cede & Co., as nominee for DTC. The Restricted Global Securities and the Regulation S Global
Securities shall be assigned separate CUSIP numbers. The Restricted Global Securities shall include
the legend regarding restrictions on transfer set forth under “Transfer Restrictions” in the Final
Offering Memorandum. Until the termination of the distribution compliance period (as defined in
Regulation S) with respect to the offering of the Offered Securities, interests in the Regulation S
Global Securities may only be held by the DTC participants for Euroclear and Clearstream,
Luxembourg. Interests in the Restricted Global Securities and the Regulation S Global Securities
will be held only in book-entry form through Euroclear, Clearstream, Luxembourg or DTC, as the case
may be, except in the limited circumstances described in the Final Offering Memorandum.

Payment for the 144A Securities and the Regulation S Securities shall be made by the
Purchasers in Federal (same day) funds by wire transfer to an account at a bank acceptable to the
Representatives drawn to the order of the Company at the office of Davis Polk & Wardwell LLP, 99
Gresham Street, London, EC2V 7NG England at 9:00 A.M. (New York time) on April 21, 2011, or at such
other time not later than seven full business days thereafter as the Representatives and the
Company determine, such time being herein referred to as the “Closing Date”, against delivery to
the Trustee as custodian for DTC of (i) the Restricted Global Securities representing all of the
144A Securities and (ii) the Regulation S Global Securities representing all of the Regulation S
Securities for the respective accounts of the DTC participants for Euroclear and Clearstream,
Luxembourg. The Regulation S Global Securities and the Restricted Global Securities will be made
available for checking at the above office of Simpson Thacher & Bartlett LLP at least 24 hours
prior to the Closing Date.

4. Representations by Purchasers; Resale by Purchasers. (a) Each Purchaser severally
represents and warrants to the Company that it is a “qualified institutional buyer” (as defined in
Rule 144A under the Securities Act).

(b) Each Purchaser severally acknowledges that the Offered Securities have not been
registered under the Securities Act and may not be offered or sold within the United States
or to, or for the account or benefit of, U.S. persons except in accordance with Regulation S
or pursuant to an exemption from the registration requirements of the Securities Act. Each
Purchaser severally represents and agrees that it has offered and sold the Offered
Securities, and will offer and sell the Offered Securities (i) as part of its distribution
at any time and (ii) otherwise until 40 days after the later of the commencement of the
offering and the Closing Date, only in accordance with Rule 903 or Rule 144A. Accordingly,
neither such Purchaser nor its affiliates, nor any persons acting on its or their behalf,
have engaged or will engage in any directed selling efforts with respect to the Offered
Securities, and such Purchaser, its affiliates and all persons acting on its or their behalf
have complied and will comply with the offering restrictions requirement of Regulation S.
Each Purchaser severally agrees that, at or prior to confirmation of sale of the Offered
Securities, other than a sale pursuant to Rule 144A, such Purchaser will have sent to each
distributor, dealer or person receiving a selling concession, fee or other remuneration
that purchases the Offered Securities from it during the restricted period a confirmation or
notice to substantially the following effect:

 

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“The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933 (the “Securities Act”) and may not be offered or sold
within the United States or to, or for the account or benefit of, U.S.
persons (i) as part of their distribution at any time or (ii) otherwise
until 40 days after the later of the date of the commencement of the
offering and the closing date, except in either case in accordance with
Regulation S (or Rule 144A if available) under the Securities Act. Terms
used above have the meanings given to them by Regulation S.”

Terms used in this subsection (b) have the meanings given to them by Regulation S.

(c) Each Purchaser severally represents, warrants and agrees that it and each of its
affiliates has not entered and will not enter into any contractual arrangement with respect
to the distribution of the Offered Securities except for any such arrangements with the
other Purchasers or affiliates of the other Purchasers or with the prior written consent of
the Company.

(d) Each Purchaser severally represents, warrants and agrees that it and each of its
affiliates will not offer or sell the Offered Securities in the United States by means of
any form of general solicitation or general advertising within the meaning of Rule 502(c) or
in any manner involving a public offering within the meaning of Section 4(2) of the
Securities Act, including, but not limited to (i) any advertisement, article, notice or
other communication published in any newspaper, magazine or similar media or broadcast over
television or radio, or (ii) any seminar or meeting whose attendees have been invited by any
general solicitation or general advertising. Each Purchaser severally agrees, with respect
to resales made in reliance on Rule 144A of any of the Offered Securities, to deliver either
with the confirmation of such resale or otherwise prior to settlement of such resale a
notice to the effect that the resale of such Offered Securities has been made in reliance
upon the exemption from the registration requirements of the Securities Act provided by Rule
144A.

(e) Each Purchaser severally represents, warrants and agrees that it has not solicited
offers for, or offered or sold, and will not solicit offers for, or offer or sell, the
Offered Securities in connection with the offering and resale of the Offered Securities
contemplated by this Agreement, except within the United States to persons whom it
reasonably believes to be qualified institutional buyers in transactions pursuant to Rule
144A.

(f) In relation to each Member State of the European Economic Area which has
implemented the Prospectus Directive (each, a “Relevant Member State”), each Purchaser
severally represents, warrants and agrees that with effect from and including the date on
which the Prospectus Directive is implemented in that Relevant Member State (the “Relevant
Implementation Date”) it has not made and will not make an offer of Offered Securities to
the public in that Relevant Member State other than: (i) to any legal entity which is a
qualified investor as defined in the Prospectus Directive; (ii) to fewer than 100 or, if the
Relevant Member State has implemented the relevant provision of the 2010 PD Amending
Directive, 150, natural or legal persons (other than qualified investors as defined in the
Prospectus Directive), as permitted under the Prospectus Directive, subject to obtaining the
prior consent of the relevant Purchaser or Purchasers nominated by the Company for any such
offer; (iii) in any other circumstances falling within Article 3(2) of the Prospectus
Directive. For the purposes of this Section 4(f), the
expression an “offer of Offered Securities to the public” in relation to any Offered
Securities in any Relevant Member State means the communication in any form and by any means
of sufficient information on the terms of the offer and the notes to be offered so as to
enable an investor to decide to purchase or subscribe the notes, as the same may be varied
in that Member State by any measure implementing the Prospectus Directive in that Member
State, the expression “Prospectus Directive” means Directive 2003/71/EC (and amendments
thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant
Member State), and includes any relevant implementing measure in the Relevant Member State
and the expression “2010 PD Amending Directive” means Directive 2010/73/EU.

 

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(g) Each Purchaser severally represents, warrants and agrees that (i) it has only
communicated or caused to be communicated and will only communicate or cause to be
communicated an invitation or inducement to engage in investment activity (within the
meaning of Section 21 of the U.K. Financial Services and Markets Act 2000, the “FSMA”)
received by it in connection with the issue or sale of the Offered Securities in
circumstances in which Section 21(1) of the FSMA does not apply to the Company; and (ii) it
has complied and will comply with all applicable provisions of the FSMA with respect to
anything done by it in relation to the Offered Securities in, from or otherwise involving
the United Kingdom.

5. Certain Agreements of the Company. The Company agrees with the several Purchasers that:

(a) It will furnish to each of the Purchasers, without charge, copies of the
Preliminary Offering Memorandum, each other document comprising a part of the General
Disclosure Package, the Final Offering Memorandum, all amendments and supplements to such
documents and any supplements and amendments thereto as you may reasonably request.

(b) Before amending or supplementing the Preliminary Offering Memorandum, any component
of the General Disclosure Package or the Final Offering Memorandum, to furnish to the
Purchasers a copy of each such proposed amendment or supplement and not to use any such
proposed amendment or supplement to which the Purchasers reasonably object in writing.

(c) If, during such period after the date hereof and prior to the date on which all of
the Offered Securities shall have been sold by the Purchasers, any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the General
Disclosure Package or the Final Offering Memorandum in order to make the statements therein,
in the light of the circumstances when the General Disclosure Package or the Final Offering
Memorandum is delivered to a purchaser, not misleading, or if it is necessary to amend or
supplement the General Disclosure Package or the Final Offering Memorandum to comply with
applicable law, forthwith to prepare and furnish, at its own expense, to the Purchasers,
either amendments or supplements to the General Disclosure Package or the Final Offering
Memorandum so that the statements in the General Disclosure Package or Final Offering
Memorandum, as applicable, as so amended or supplemented will not, in the light of the
circumstances when the General Disclosure Package or the Final Offering Memorandum is
delivered to a purchaser, be misleading or so that the General Disclosure Package or Final
Offering Memorandum, as applicable, as amended or supplemented, will comply with applicable
law; provided that the expense of preparing and furnishing any such amendment or supplement
(i) that is necessary in connection with such a delivery of the Final Offering Memorandum
more than nine months after the date of this Agreement or (ii) that relates solely to the
activities of any Purchaser shall be borne by the Purchaser or Purchasers or the dealer or
dealers requiring the same; and provided further that you shall, upon inquiry by the
Company, advise the Company whether or not any Purchaser or dealer which shall have been
selected by you retains any unsold Offered Securities and, for the purposes of this
subsection (c), the Company shall be entitled to assume that the distribution of the Offered
Securities has been completed when they are advised by you that no Purchaser or such dealer
retains any Offered Securities.

 

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(d) It will endeavor to, in cooperation with the Purchasers, qualify the Offered
Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as
the Purchasers shall reasonably request; provided, however, that the Company shall not be
required to qualify to do business as a foreign corporation or as a securities dealer, to
file a general consent to service of process in any jurisdiction in which it is not so
qualified, to subject itself to taxation in respect of doing business in any jurisdiction in
which it is not otherwise so subject or to meet any requirement in connection with this
subsection (d) reasonably deemed by the Company to be unduly burdensome.

(e) To use its reasonable efforts to cause each series of the Offered Securities to be
listed on the LSE for admission to trading on the Euro MTF Market of the LSE and if at any
time following the listing of either series of the Offered Securities on the LSE, such
securities cease to be so listed, to use its reasonable efforts to list such Offered
Securities on another such recognized stock exchange reasonably satisfactory to the
Purchasers.

(f) To pay or bear (i) all expenses in connection with the matters herein required to
be performed by the Company and under the Indenture, including all expenses (except as
provided in Section 5(c) above) in connection with the preparation of the Preliminary
Offering Memorandum and the Final Offering Memorandum, and any amendment or supplement
thereto, and the furnishing of copies thereof to the Purchasers, and all audits, statements
or reports in connection therewith, and all expenses in connection with the issue and
delivery of the Offered Securities to the Purchasers, any fees and expenses relating to the
eligibility and issuance of the Offered Securities in book-entry form and the cost of
obtaining CUSIP numbers or other identification numbers for the Offered Securities, all
taxes payable (not including any transfer taxes) upon the original issue of the Offered
Securities and their sale to the Purchasers; (ii) all expenses in connection with the
printing, reproduction and delivery of this Agreement and, except as provided in Section
5(c) above, the printing, reproduction and delivery of the Preliminary Offering Memorandum,
the Final Offering Memorandum, the Indenture and any amendments or supplements thereto, and
any other documents relating to the issuance, offer, sale and delivery of the Offered
Securities; (iii) any and all fees payable in connection with the rating of the Offered
Securities; (iv) the Company’s costs and expenses relating to investor presentations on any
“road show” undertaken in connection with the marketing of the offering of the Offered
Securities, including, without limitation, expenses associated with the production of road
show slides and graphics, fees and expenses of any consultants engaged in connection with
the road show presentations with the prior approval of the Company, travel and lodging
expenses of the representatives and officers of the Company and any such consultants, and
the Company’s portion of the costs of any aircraft chartered in connection with the road
show; (v) the qualification of the Offered Securities under the securities laws or Blue Sky
laws of such jurisdictions as the Purchasers shall reasonably request in accordance with the
provisions of Section 5(d) hereof, including filing fees and the reasonable fees and
disbursements of counsel for the Purchasers in connection with any Blue Sky or legal
investment survey; and (vi) the fees and expenses of the Trustee, including the fees and
disbursements of counsel for the Trustee in connection with the Offered Securities.

 

- 10 -

 

(g) Neither the Company nor any Affiliate will sell, offer for sale or solicit offers
to buy or otherwise negotiate in respect of any security (as defined in the Securities Act)
that would be integrated with the sale of the Offered Securities in a manner which would
require the registration under the Securities Act of the Offered Securities.

(h) The Company will not solicit any offer to buy or offer or sell the Offered
Securities by means of any form of general solicitation or general advertising (as those
terms are used in Regulation D under the Securities Act) or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act.

(i) None of the Company, its Affiliates or any person acting on its or their behalf
(other than the Purchasers) will engage in any directed selling efforts (as that term is
defined in Regulation S) with respect to the Offered Securities, and the Company and its
Affiliates and each person acting on its or their behalf (other than the Purchasers) will
comply with the offering restrictions requirement of Regulation S.

(j) While any of the Offered Securities remain “restricted securities” within the
meaning of the Securities Act, the Company will make available, upon request, to any seller
of such Offered Securities the information specified in Rule 144A(d)( 4) under the
Securities Act, unless the Company is then subject to Section 13 or 15(d) of the Exchange
Act or is exempt from reporting pursuant to Rule 12g3-2(b) under the Exchange Act.

(k) During the period of one year after the Closing Date the Company will not, and will
not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to resell
any of the Offered Securities which constitute “restricted securities” under Rule 144 that
have been reacquired by any of them.

(l) The Company will indemnify and hold harmless the Purchasers against any
documentary, stamp or similar issuance tax, including any interest and penalties, on the
creation, issuance and sale of the Offered Securities and on the execution and delivery of
this Agreement. In addition, all payments to be made by the Company hereunder to any
Purchaser shall be made without withholding or deduction for or on account of any present or
future taxes, duties or governmental charges whatsoever imposed by the United Kingdom or any
governmental agency or body or other political subdivision or taxing authority thereof or
therein (the “Taxing Jurisdiction” and such taxes, duties or governmental charges
collectively “Taxes”) unless the Company is compelled by law to deduct or withhold such
Taxes. In that event, the Company shall pay such additional amounts to the Purchaser as may
be necessary in order that the net amounts received after such withholding or deduction
shall equal the amounts that would have been received if no withholding or deduction had
been made, except to the extent that such Taxes were imposed due to (i) such Purchaser or
any agent thereof having any present or former connection with the Taxing Jurisdiction other
than solely as a result of (A) the execution and delivery of, or performance of, its
obligations under this Agreement, (B) receiving or paying for the Offered Securities or (C)
receiving any payments hereunder or (ii) the failure of the Purchaser or its agents, as the
case may be, upon the reasonable request of the Company, to provide within a reasonable
period any form, certificate, document, or other information that is required under the law
of the applicable Taxing Jurisdiction in order to reduce or eliminate such deduction or
withholding of Taxes.

 

- 11 -

 

6. Free Writing Communications. (a) The Company represents and agrees that, unless it obtains
the prior consent of the Representatives, and each Purchaser represents and agrees that, unless it
obtains
the prior consent of the Company and the Representatives, it has not made and will not make any
offer relating to the Offered Securities that would constitute an Issuer Free Writing
Communication, other than any Supplemental Marketing Material listed on Schedule C hereto.

(b) Term Sheets. The Company consents to the use by any Purchaser of a Free Writing
Communication that contains only (A) information describing the preliminary terms of the
Offered Securities or their offering or (B) information that describes the final terms of
the Offered Securities or their offering and that is included in or is subsequently included
in the Final Offering Memorandum.

7. Conditions of the Obligations of the Purchasers. The obligations of the several
Purchasers to purchase and pay for the Offered Securities will be subject to the accuracy of the
representations and warranties of the Company herein (as though made on the Closing Date), to the
accuracy of the statements of officers of the Company made pursuant to the provisions hereof, to
the performance by the Company of its obligations hereunder and to the following additional
conditions precedent:

(a) Accountants’ Comfort Letter. The Purchasers shall have received letters, in form
and substance satisfactory to you, dated, respectively, the date hereof and the Closing
Date, of each of PricewaterhouseCoopers LLP and Ernst & Young LLP confirming that they are
independent accountants within the applicable rules and regulations adopted by the American
Institute of Certified Public Accountants and containing statements and information of the
type ordinarily included in accountants’ “comfort letters”.

(b) No Material Adverse Change. Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) except as stated in the General Disclosure
Package or the Final Offering Memorandum, any material adverse change, or event or
occurrence that would result in a material adverse change, in the financial position or
results of operations of the Company and its subsidiaries taken as a whole (a “Material
Adverse Change”) which, in the judgment of the Representatives, is material and adverse and
makes it impractical and inadvisable to market the Offered Securities, (ii) any decrease in
the ratings of the Offered Securities by any “nationally recognized statistical rating
organization”, as such term is defined for purposes of Section 3(a)(62) under the Exchange
Act, or any such organization shall have publicly announced that it has under surveillance
or review, with possible negative implications, its rating of the Offered Securities, (iii)
any suspension of or material limitation of trading generally on the New York Stock
Exchange, the Nasdaq Global Market or the London Stock Exchange, (iv) any suspension of
trading of any securities of the Company on any exchange or in any over-the-counter market,
(v) any general moratorium on commercial banking activities declared by U.S. Federal, New
York State or United Kingdom authorities or (vi) any outbreak or escalation of major
hostilities in which the United States is involved, any declaration of war by Congress or
any other substantial national or international calamity or emergency if, in the reasonable
judgment of the Representatives, the effect of any such outbreak, escalation declaration,
calamity or emergency makes it impractical and inadvisable to proceed with completion of the
sale of and payment for the Offered Securities, and in the case of any of the events
specified in clauses (a)(i) through (vi), such event singly or together with any other such
event makes it, in your judgment, impracticable and inadvisable to market the Offered
Securities on the terms and in the manner contemplated in the Preliminary Offering
Memorandum or the Final Offering Memorandum.

 

- 12 -

 

(c) Opinion of Special U.K. Counsel for the Company. The Purchasers shall have
received an opinion, dated the Closing Date, of Allen & Overy LLP, Special U.K. legal
counsel
for the Company, in form and substance reasonably satisfactory to the counsel of the
Purchasers, substantially to the effect set forth in Schedule F hereto.

(d) Opinion and Disclosure Letter of Counsel of Company. The Purchasers shall have
received an opinion and negative assurance letter, dated the Closing Date, of Simpson
Thacher & Bartlett LLP, counsel to the Company, in form and substance reasonably
satisfactory to the counsel of the Purchasers, substantially to the effect set forth in
Schedules G-1 and G-2 hereto. In rendering its opinion, Simpson Thacher & Bartlett LLP may
rely as to matters involving English law upon the opinion of Allen & Overy LLP referred to
above.

(e) Opinion of Counsel for Purchasers. The Purchasers shall have received from Davis
Polk & Wardwell LLP, counsel for the Purchasers, such opinion or opinions, dated the Closing
Date, with respect to such matters as the Representatives may require, and the Company shall
have furnished to such counsel such documents as they request for the purpose of enabling
them to pass upon such matters. In rendering such opinion, Davis Polk & Wardwell LLP may
rely, as to matters involving the matters governed by English law, upon the opinions of
Allen & Overy LLP and Simpson Thacher & Bartlett LLP referred to above.

(f) Officers’ Certificate. The Purchasers shall have received on the Closing Date a
certificate, dated the Closing Date, of an executive officer and a principal financial or
accounting officer of the Company, in which such officers, to the best of their knowledge
after reasonable investigation, shall state that (i) the representations and warranties of
the Company in this Agreement are true and correct in all material respects as of the
Closing Date, (ii) the Company has complied in all material respects with all agreements and
satisfied all conditions on its part to be performed or satisfied at or prior to the Closing
Date, and (iii) since the date as of which information is given in the General Disclosure
Package and the Final Offering Memorandum, there has not been any Material Adverse Change
except as set forth or contemplated in the General Disclosure Package or the Final Offering
Memorandum or in an amendment or supplement thereto or as described in such certificate.

(g) Transaction Documents. The Company shall have executed and the Purchasers shall
have received fully executed and/or authenticated copies of the Indenture (including any
supplements thereto).

The Company will furnish the Purchasers with such conformed copies of such opinions,
certificates, letters and documents as the Purchasers reasonably request. The Representatives may
in their sole discretion waive on behalf of the Purchasers compliance with any conditions to the
obligations of the Purchasers hereunder.

8. Indemnification and Contribution. (a) The Company agrees that it will indemnify and hold
harmless each Purchaser and the officers, directors, partners, members, employees, agents and
affiliates of each Purchaser and each person, if any, who controls any Purchaser within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act (each “an indemnified
party”), against any loss, expense, claim, damage or liability to which, jointly or severally, such
indemnified party may become subject, under the Securities Act or otherwise, insofar as such loss,
expense, claim, damage or liability (or actions in respect thereof) arises out of or is based upon
any untrue statement or alleged untrue statement of any material fact contained in the Preliminary
Offering Memorandum or the Final Offering Memorandum, or any amendment or supplement thereto, or
any Issuer Free Writing Communication (including, without limitation, any Supplemental Marketing
Material), or arises out of or is based upon the omission or alleged omission to state therein any
material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading and, except as hereinafter in this Section provided, the Company agrees
to reimburse each indemnified party for any reasonable legal or other expenses as incurred by such
indemnified party in connection with investigating or defending against any such loss, expense,
claim, damage or liability; provided, however, that the Company shall not be liable in any such
case to the extent that any such loss, expense, claim, damage or liability arises out of or is
based on an untrue statement or alleged untrue statement or omission or alleged omission made in
any such document in reliance upon, and in conformity with, written information furnished to the
Company by or through the Representatives on behalf of any Purchaser expressly for use in any such
document, it being understood and agreed that the only such information consists of the information
described as such in subsection (b) below.

 

- 13 -

 

(b) Each Purchaser, severally and not jointly, agrees that it will indemnify and hold
harmless the Company and its officers and directors, and each of them, and each person, if any, who
controls the Company within the meaning of Section 15 of the Securities Act, against any loss,
expense, claim, damage or liability to which it or they may become subject, under the Securities
Act or otherwise, insofar as such loss, expense, claim, damage or liability (or actions in respect
thereof) arises out of or is based on any untrue statement or alleged untrue statement of any
material fact contained in the Preliminary Offering Memorandum or the Final Offering Memorandum,
or any amendment or supplement thereto, or any Issuer Free Writing Communication (including,
without limitation, any Supplemental Marketing Material), or arises out of or is based upon the
omission or alleged omission to state therein any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made,
not misleading, in each case to the extent, and only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in any such documents in reliance
upon, and in conformity with, written information furnished to the Company by or through the
Representatives on behalf of such Purchaser expressly for use in any such document, it being
understood and agreed that the only such information furnished by any Purchaser consists of the
following information in the Preliminary Offering Memorandum and the Final Offering Memorandum
under the caption “Plan of Distribution”, the information in the third paragraph relating to
certain terms of the offering of the Offered Securities, the information in the second sentence of
the seventh paragraph relating to market-making activities of the Purchasers and the information in
the eighth paragraph relating to stabilizing transactions, over-allotment transactions and
syndicate covering transactions; and, except as hereinafter in this Section provided, each
Purchaser, severally and not jointly, agrees to reimburse the Company and its officers and
directors, and each of them, and each person, if any, who controls the Company within the meaning
of Section 15 of the Securities Act, for any reasonable legal or other expenses incurred by it or
them in connection with investigating or defending against any such loss, expense, claim, damage or
liability.

(c) Upon receipt of notice of the commencement of any action against an indemnified party,
the indemnified party shall, with reasonable promptness, if a claim in respect thereof is to be
made against an indemnifying party under its agreement contained in this Section 8, notify such
indemnifying party in writing of the commencement thereof; but the omission so to notify an
indemnifying party shall not relieve it from any liability which it may have to the indemnified
party otherwise than under its agreement contained in this Section 8. In the case of any such
notice to an indemnifying party, the indemnifying party shall be entitled to participate at its own
expense in the defense, or if it so elects, to assume the defense, of any such action, but, if it
elects to assume the defense, such defense shall be conducted by counsel chosen by it and
satisfactory to the indemnified party and to any other indemnifying party that is a defendant in
the suit. In the event that any indemnifying party elects to assume the defense of any such action
and retain such counsel, the indemnified party shall bear the fees and expenses of any additional
counsel retained by it unless (i) the indemnifying party and the indemnified party shall have
mutually agreed to the contrary; (ii) the indemnifying party has failed within a reasonable time to
retain
counsel reasonably satisfactory to the indemnified party; (iii) the indemnified party shall have
reasonably concluded that there may be legal defenses available to it that are different from or in
addition to those available to the indemnifying party; or (iv) the named parties in any such
proceeding (including any impleaded parties) include both the indemnifying party and the
indemnified party and the representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. No indemnifying party shall be liable
in the event of any settlement of any such action effected without its consent.

 

- 14 -

 

(d) If any Purchaser or person entitled to indemnification by the terms of subsection (a) of
this Section 8 shall have given notice to the Company of a claim in respect thereof pursuant to
subsection (c) of this Section 8, and if such claim for indemnification is thereafter held by a
court to be unavailable for any reason other than by reason of the terms of this Section 8 or if
such claim is unavailable under controlling precedent, such Purchaser or person shall be entitled
to contribution from the Company for liabilities and expenses, except to the extent that
contribution is not permitted under Section 11(f) of the Securities Act. In determining the amount
of contribution to which such Purchaser or person is entitled, there shall be considered the
relative benefits received by such Purchaser or person and the Company from the offering of the
Offered Securities that were the subject of the claim for indemnification (taking into account the
portion of the proceeds of the offering realized by each), the Purchaser or person’s relative
knowledge and access to information concerning the matter with respect to which the claim was
asserted, the opportunity to correct and prevent any statement or omission, and any other equitable
considerations appropriate under the circumstances. The Company and the Purchasers agree that it
would not be equitable if the amount of such contribution were determined by pro rata or per capita
allocation (even if the Purchasers were treated as one entity for such purpose).

(e) No indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section 8 (whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an unconditional release of
each indemnified party and all liability arising out of such litigation, investigation, proceeding
or claim, and (ii) does not include a statement as to or an admission of fault, culpability or the
failure to act by or on behalf of any indemnified party.

(f) The indemnity and contribution provided for in this Section 8 and the representations and
warranties of the Company and the several Purchasers set forth in this Agreement shall remain
operative and in full force and effect regardless of (i) any investigation made by or on behalf of
any Purchaser or any person controlling any Purchaser or the Company or their respective directors
or officers, (ii) the acceptance of any Offered Securities and payment therefor under this
Agreement and (iii) any termination of this Agreement.

9. Default of Purchasers. If any Purchaser or Purchasers default in their obligations to
purchase Offered Securities hereunder and the aggregate principal amount of Offered Securities that
such defaulting Purchaser or Purchasers agreed but failed to purchase does not exceed 10% of the
total aggregate principal amount of Offered Securities, the Representatives may make arrangements
satisfactory to the Company for the purchase of such Offered Securities by other persons, including
any of the non-defaulting Purchasers, but if no such arrangements are made by the Closing Date, the
non-defaulting Purchasers shall be obligated severally, in proportion to their respective
commitments hereunder, to purchase the Offered Securities that such defaulting Purchasers agreed
but failed to purchase. In the event that any Purchaser or Purchasers default in their obligations
to purchase Offered Securities hereunder, the Company may by prompt written notice to
non-defaulting Purchasers postpone
the Closing Date for a period of not more than seven full business days in order to effect whatever
changes may thereby be made necessary in the General Disclosure Package or the Final Offering
Memorandum or in any other documents, and the Company will promptly furnish any amendments or
supplements to the General Disclosure Package or the Final Offering Memorandum which may thereby be
made necessary. If any Purchaser or Purchasers so default and the aggregate principal amount of
Offered Securities with respect to which such default or defaults occur exceeds 10% of the total
principal amount of Offered Securities and arrangements satisfactory to the Representatives and the
Company for the purchase of such Offered Securities by other persons are not made within 48 hours
after such default, this Agreement will terminate without liability of any party to any other party
except that the provisions of Sections 8, 10 and 15 shall at all times be effective and shall
survive such termination. As used in this Agreement, the term “Purchaser” includes any person
substituted for a Purchaser under this Section. Nothing herein will relieve a defaulting Purchaser
from liability for its default.

 

- 15 -

 

10. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company or its officers and of
the several Purchasers set forth in or made pursuant to this Agreement will remain in full force
and effect, regardless of any investigation, or statement as to the results thereof, made by or on
behalf of any Purchaser, the Company or any of their respective representatives, officers or
directors or any controlling person, and will survive delivery of and payment for the Offered
Securities. If for any reason the purchase of the Offered Securities by the Purchasers is not
consummated, the Company shall remain responsible for the expenses to be paid or reimbursed by it
pursuant to Section 5 and the respective obligations of the Company and the Purchasers pursuant to
Section 8 shall remain in effect. If the purchase of the Offered Securities by the Purchasers is
not consummated for any reason other than solely because of the termination of this Agreement
pursuant to Section 9 or the occurrence of any event specified in clause (iii), (v) or (vi) of
Section 7(b) or any combination of events specified in such clauses (iii), (v) and (vi), the
Company will reimburse the Purchasers for all out-of-pocket expenses (including fees and
disbursements of counsel) reasonably incurred by them in connection with the offering of the
Offered Securities.

11. Notices. All communications hereunder will be in writing and, if sent to the Purchasers
will be mailed, delivered or telegraphed and confirmed to the Purchasers at Barclays Capital Inc.
at 745 Seventh Avenue, New York, NY 10019, Facsimile: 646-834-8133, Attention: Syndicate
Registration; Credit Suisse Securities (USA) LLC at Eleven Madison Avenue, New York, N.Y.
10010-3629, Attention: LCD-IBD; Merrill Lynch, Pierce, Fenner & Smith Incorporated at One Bryant
Park, NY1-100-18-03, New York, NY 10036, Facsimile: 212-901-7881, Attention: High Grade Debt
Capital Markets Transaction Management/Legal; RBS Securities Inc., 600 Washington Boulevard,
Stamford, CT 06901, Facsimile: 203-873-4534, Attention: Debt Capital Markets Syndicate or, if sent
to the Company, will be mailed, delivered or telegraphed and confirmed to it at PPL WEM Holdings
plc at Avonbank Feeder Road, Bristol, United Kingdom BS2 0TB, Attention: Corporate Secretary,
Facsimile +44-11-7933-2001; provided, however, that any notice to a Purchaser pursuant to Section 8
will be mailed, delivered or telegraphed and confirmed to such Purchaser.

12. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the controlling persons referred to in Section 8, and no
other person will have any right or obligation hereunder, except that holders of Offered Securities
shall be entitled to enforce the agreements for their benefit with respect to information required
to be delivered to holders of the Offered Securities pursuant to the Indenture and in accordance
with Rule 144A(d)(4) against the Company as if such holders were parties thereto.

 

- 16 -

 

13. Representation of Purchasers. You will act for the several Purchasers in connection with
this purchase, and any action under this Agreement taken by you will be binding upon all the
Purchasers.

14. Miscellaneous.

(a) Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all such counterparts shall together constitute one and the
same Agreement.

(b) Currency. The obligation of the Company pursuant to this Agreement in respect of any sum
due to any Purchaser shall, notwithstanding any judgment in a currency other than United States
dollars, not be discharged until the first business day, following receipt by such Purchaser of any
sum adjudged to be so due in such other currency, on which (and only to the extent that) such
Purchaser may in accordance with normal banking procedures purchase United States dollars with such
other currency; if the United States dollars so purchased are less than the sum originally due to
such Purchaser hereunder, the Company agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify such Purchaser against such loss. If the United States dollars so purchased
are greater than the sum originally due to such Purchaser hereunder, such Purchaser agrees to pay
to the Company an amount equal to the excess of the dollars so purchased over the sum originally
due to such Purchaser hereunder.

(c) Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any
consent or approval to any departure therefrom, shall in any event be effective unless the same
shall be in writing and signed by the parties hereto.

(d) Headings. The headings herein are included for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.

15. Absence of Fiduciary Relationship. The Company acknowledges and agrees that (a) the
purchase and sale of the Offered Securities pursuant to this Agreement, including the determination
of the public offering price of the Offered Securities and any related discounts and commissions,
is an arm’s-length commercial transaction between the Company, on the one hand, and the several
Purchasers, on the other hand, (b) in connection with the offering contemplated hereby and the
process leading to such transaction, each Purchaser is and has been acting solely as a principal
and is not the agent or fiduciary of the Company, or their respective stockholders, creditors,
employees or any other party, (c) no Purchaser has assumed or will assume an advisory or fiduciary
responsibility in favor of the Company with respect to the offering contemplated hereby or the
process leading thereto (irrespective of whether such Purchaser has advised or is currently
advising the Company on other matters) and no Purchaser has any obligation to the Company with
respect to the offering contemplated hereby except the obligations expressly set forth in this
Agreement, (d) the Purchasers and their respective affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Company, (e) the Purchasers have
not provided any legal, accounting, regulatory or tax advice with respect to the offering
contemplated hereby and the Company has consulted its own legal, accounting, regulatory and tax
advisors to the extent it deemed appropriate and (f) the Company waives, to the fullest extent
permitted by law, any claims it may have against the Purchasers for breach of fiduciary duty or
alleged breach of fiduciary duty and agree that the Purchasers shall have no liability (whether
direct or indirect) to the Company in respect of such a fiduciary duty claim or to any person
asserting a fiduciary duty claim on behalf of or in right of the Company, including stockholders,
creditors or employees.

 

- 17 -

 

16. Applicable Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.

17. U.S. Jurisdiction. The Company hereby submits to the non-exclusive jurisdiction of the
Federal and state courts in the Borough of Manhattan in The City of New York in any suit or
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
The Company irrevocably and unconditionally waives any objection to the laying of venue of any suit
or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby
in Federal and state courts in the Borough of Manhattan in The City of New York and irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such suit or
proceeding in any such court has been brought in an inconvenient forum. The Company irrevocably
appoints CT Corporation System, as its authorized agent in the Borough of Manhattan in The City of
New York upon which process may be served in any such suit or proceeding, and agrees that service
of process upon such agent, and written notice of said service to the Company, by the person
serving the same to the address provided in Section 11, shall be deemed in every respect effective
service of process upon the Company in any such suit or proceeding. The Company further agrees to
take any and all action as may be necessary to maintain such designation and appointment of such
agent in full force and effect for a period of seven years from the date of this Agreement.

[Signature Pages Follow]

 

- 18 -

 

If the foregoing is in accordance with the Purchasers’ understanding of our agreement, kindly
sign and return to us one of the counterparts hereof, whereupon it will become a binding agreement
between the Company and the several Purchasers in accordance with its terms.

	 	 	 	 	 
	 	Very truly yours,

PPL WEM HOLDINGS PLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

[Purchase Agreement]

 

 

 

The foregoing Purchase Agreement
 is hereby confirmed and accepted
as of the date first above written.

BARCLAYS CAPITAL INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

CREDIT SUISSE SECURITIES (USA) LLC

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

RBS SECURITIES INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

Acting on behalf of themselves

and as the Representatives of

the several Purchasers

[Purchase Agreement]

 

 

 

SCHEDULE A

	 	 	 	 	 	 	 	 	 
	 	 	Aggregate	 	 	Aggregate	 
	 	 	Principal	 	 	Principal	 
	 	 	Amount of the	 	 	Amount of the	 
	Purchaser	 	2016 Notes	 	 	2021 Notes	 
	 
	 	 	 	 	 	 	 	 
	Credit Suisse Securities (USA) LLC
	 	$	92,000,000	 	 	$	100,000,000	 
	Merrill Lynch, Pierce, Fenner & Smith
	 	$	92,000,000	 	 	$	100,000,000	 
	Incorporated
	 	$	92,000,000	 	 	$	100,000,000	 
	RBS Securities Inc.
	 	$	55,200,000	 	 	$	60,000,000	 
	Barclays Capital Inc.
	 	$	46,000,000	 	 	$	50,000,000	 
	Banco Bilbao Vizcaya Argentaria, S.A.
	 	$	31,050,000	 	 	$	33,750,000	 
	BNP Paribas Securities Corp.
	 	$	31,050,000	 	 	$	33,750,000	 
	Credit Agricole Securities (USA) Inc.
	 	$	31,050,000	 	 	$	33,750,000	 
	Scotia Capital (USA) Inc.
	 	$	31,050,000	 	 	$	33,750,000	 
	U.S Bancorp Investments, Inc.
	 	$	31,050,000	 	 	$	33,750,000	 
	Lloyds Securities Inc.
	 	$	19,550,000	 	 	$	21,250,000	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total
	 	$	460,000,000	 	 	$	500,000,000	 
	 
	 	 	 	 	 	 

 

 

 

SCHEDULE B

	1.	 	Issuer Free Writing Communications (included in the General Disclosure Package):

	 	1.	 	Final term sheet, dated April 18, 2011, a copy of which is attached hereto.

 

 

 

CONFIDENTIAL

PPL WEM HOLDINGS PLC

TERM SHEET

3.900% Senior Notes due 2016

5.375% Senior Notes due 2021

	 	 	 	 	 
	Issuer:
	 	PPL WEM Holdings plc	 	 
	 
	 	 	 	 
	Distribution:	 	Rule 144A without Registration Rights / Regulation S
	 
	 	 	 	 
	Trade Date:
	 	April 18, 2011	 	 
	 
	 	 	 	 
	Expected Settlement Date:
	 	April 21, 2011 (T+3)	 	 
	 
	 	 	 	 
	Joint Book-Running
Managers:	 	Barclays Capital Inc.

Credit Suisse Securities (USA) LLC

Merrill Lynch, Pierce, Fenner & Smith Incorporated

RBS Securities Inc.

Banco Bilbao Vizcaya Argentaria, S.A.

BNP Paribas Securities Corp.

Credit Agricole Securities (USA) Inc.

Scotia Capital (USA) Inc.

U.S Bancorp Investments, Inc.

	 
	 	 	 	 
	Co-Manager:
	 	Lloyds Securities Inc.	 	 
	 
	 	 	 	 
	Security Description:
	 	Senior Notes due 2016	 	Senior Notes due 2021
	 
	 	 	 	 
	Aggregate Principal
	 	$460 million	 	$500 million
	Amount:
	 	 	 	 
	 
	 	 	 	 
	Expected Ratings
	 	Baa3 (stable) /BBB-(stable)	 	Baa3 (stable) /BBB-(stable)
	(Moody’s/S&P)*
	 	 	 	 
	 
	 	 	 	 
	Maturity Date:
	 	May 1, 2016	 	May 1, 2021
	 
	 	 	 	 
	Interest Payment Dates:
	 	May 1 and November 1, commencing	 	May 1 and November 1, commencing
	 
	 	November 1, 2011	 	November 1, 2011
	 
	 	 	 	 
	Benchmark Treasury:
	 	2.25% due March 31, 2016	 	3.625% due February 15, 2021
	 
	 	 	 	 
	Benchmark Treasury Yield:
	 	2.073%	 	3.378%
	 
	 	 	 	 
	Spread to Benchmark
	 	+185 basis points	 	+200 basis points
	Treasury:
	 	 	 	 
	 
	 	 	 	 
	Yield to Maturity:
	 	3.923%	 	5.378%
	 
	 	 	 	 
	Coupon:
	 	3.900% per annum	 	5.375% per annum

 

 

 

	 	 	 	 	 
	Offering Price:
	 	99.895% of principal amount	 	99.975% of principal amount
	 
	 	 	 	 
	Redemption Provisions:
	 	Make-whole call, in whole or in part,	 	Prior to February 1, 2021 make-whole
	 
	 	at 30 basis points, plus accrued and	 	call, in whole or in part, at T+35
	 
	 	unpaid interest.	 	basis points, plus accrued and unpaid
	 
	 	 	 	interest.
	 
	 	 	 	 
	 
	 	 	 	On or after February 1, 2021,
	 
	 	 	 	callable, in whole or in part, at par
	 
	 	 	 	plus accrued and unpaid interest.
	 
	 	 	 	 
	Tax Redemption:
	 	In whole but not in part at par at any	 	In whole but not in part at par at any
	 
	 	time in the event of a change in	 	time in the event of a change in
	 
	 	certain withholding taxes	 	certain withholding taxes
	 
	 	 	 	 
	Denominations:
	 	$2,000 and integral multiples of $1,000	 	$2,000 and integral multiples of $1,000
	 
	 	 	 	 
	CUSIP/ISIN:
	 	144A: 69353U AB7 / US69353UAB70	 	144A: 69353U AA9 / US69353UAA97
	 
	 	Reg S: G7208U AB7 / USG7208UAB73	 	Reg S: G7208U AA9 / USG7208UAA90

	 	 	 
	*	 	Note: a security rating is not a recommendation to buy, sell or hold securities, it may be
revised or withdrawn at any time by the assigning rating organization and each rating presented
should be evaluated independently of any other rating.

These securities have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and may only be sold to qualified institutional buyers pursuant to Rule 144A
or outside the united States to non-U.S. persons in compliance with Regulation S under the
Securities Act.

This communication is intended for the sole use of the person to whom it is provided by the
sender. This communication should be read in conjunction with the Issuer’s preliminary offering
memorandum dated April 18, 2011 (the “Offering Memorandum”). The information in this
communication supersedes the information in the Offering Memorandum to the extent it is
inconsistent with the information in the Offering memorandum. This communication is qualified in
its entirety by reference to the Offering Memorandum.

ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION
AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A
RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.

 

 

 

SCHEDULE C

Supplemental Marketing Materials:

Investor Roadshow Presentation (April 2011)

 

 

 

SCHEDULE D

	1.	 	Western Power Distribution (East Midlands) plc (formerly Central Networks East plc)

	 
	2.	 	WPD Midlands Holdings Limited (formerly Central Networks Limited)

	 
	3.	 	Western Power Distribution (West Midlands) plc (formerly Central Networks West plc)

	 
	4.	 	WPD Midlands Networks Services Limited (formerly Central Networks Services Limited)

	 
	5.	 	Cell Site Connection Services Limited (formerly Cell Site Services Limited)

	 
	6.	 	WPD Midlands Networks Contracting Limited (formerly Central Networks Contracting
Limited)

	 
	7.	 	WPD Guernsey Limited

	 
	8.	 	WPD Limited

	 
	9.	 	Hyder Limited

	 
	10.	 	Hyder Share Scheme Trustee Limited

	 
	11.	 	Hyder Share Scheme Trustee (2) Limited

 

 

 

SCHEDULE E

	1.	 	Western Power Distribution (East Midlands) plc (formerly Central Networks East plc)

	 
	2.	 	WPD Midlands Holdings Limited (formerly Central Networks Limited)

	 
	3.	 	Western Power Distribution (West Midlands) plc (formerly Central Networks West plc)

	 
	4.	 	WPD Midlands Networks Services Limited (formerly Central Networks Services Limited)

	 
	5.	 	Cell Site Connection Services Limited (formerly Cell Site Services Limited)

	 
	6.	 	WPD Midlands Networks Contracting Limited (formerly Central Networks Contracting
Limited)

 

 

 

SCHEDULE F

Form of Opinion of Allen & Overy LLP,

Special U.K. Counsel for the Company

Dear Sirs,

PPL WEM Holdings plc (the Company) — Purchase Agreement between the Purchasers and the

Company dated _____ April, 2011 (the Agreement)

We have received instructions from the Company to provide a legal opinion in connection with:

	(i)	 	the Agreement;

	 
	(ii)	 	an indenture and supplemental indenture no.1 thereto, each between the Company and the
Trustee dated
 _____
April, 2011 (both the indenture and the supplemental indenture no.1
together, the Indenture); and

	 
	(iii)	 	the issue and sale to the several Purchasers of U.S.$_____ 
aggregate principal amount of its
 _____%Senior Notes due 2016 (the 2016 Notes) and U.S.$_____ 
aggregate principal amount of its
 _____%
Senior Notes due 2021 (the 2021 Notes and together with the 2016 Notes, the Offered
Securities) to be issued under the Indenture.

The Agreement and the Indenture are together the Opinion Documents.

Definitions

Unless otherwise defined in this opinion, words defined in the Agreement have the same meaning
when used in this opinion.

Documents and searches

For the purposes of this opinion we have examined the following documents:

	(a)	 	a signed copy (including of counterparts if applicable) of each of the Agreement and the
Indenture;

	 
	(b)	 	a certified copy of the memorandum and articles of association, certificate of incorporation
of the Company and any certificates of incorporation on a change of name;

	 
	(c)	 	a certified copy of the minutes of a meeting of the board of directors of the Company held on
April, 2011;

	 
	(d)	 	the statements in the General Disclosure Package in the Preliminary Offering Memorandum [in
the section headed “Enforceability of Civil Liabilities”] and in the section headed “Certain
Tax Considerations” (in respect of United Kingdom taxation only); and

 

 

 

	(e)	 	a certificate of an executive officer and a principal financial or accounting officer of the
Company in which such officers confirm to the best of their knowledge after reasonable
investigation, amongst other things, that (i) the representations and warranties of the
Company in the Agreement are true and correct in all material respects as of the Closing Date,
(ii) the Company has complied in all material respects with all agreements and satisfied all
conditions on its part to be performed or satisfied at or prior to the Closing Date, and (iii)
since the date as of which information is given in the General Disclosure Package and the
Final Offering Memorandum, there has not been any Material Adverse Change except as set forth
or contemplated in the General Disclosure Package or the Final Offering Memorandum or in
amendment or supplement thereto or as described in such certificate.

On ___
April, 2011 we carried out a search of the Company at the Companies Registry. On ___
April, 2011 we made a telephone enquiry to the Central Registry of Winding Up-Petitions to
check whether a winding-up petition has been presented in respect of the Company at the record of
winding-up petitions at the Companies court.

The above are the only documents or records we have examined and the only searches and
enquiries we have carried out for the purposes of this opinion.

Assumptions

We assume that:

	(a)	 	the Company is not unable to pay its debts within the meaning of section 123 of the
Insolvency Act, 1986 at the time it enters into any of the Opinion Documents and will not as a
result of any of the Opinion Documents be unable to pay its debts within the meaning of that
section;

	 
	(b)	 	no step has been taken to wind up or dissolve the Company, put the Company into
administration or appoint a receiver, administrator, administrative receiver, trustee in
bankruptcy or similar officer in respect of it or any of its assets although the searches of
the Companies Registry referred to above gave no indication that any winding-up, dissolution
or administration order or appointment of a receiver, administrator, administrative receiver,
trustee in bankruptcy or similar officer has been made;

	 
	(c)	 	all signatures and documents are genuine;

	 
	(d)	 	all documents are and remain up-to-date;

	 
	(e)	 	the correct procedure was carried out at the board meeting referred to above; for example,
there was a valid quorum, all relevant interests of directors were declared and the
resolutions were duly passed at the meeting;

	 
	(f)	 	there are no contractual or similar restrictions binding on the Company (other than as may be
contained in the Opinion Documents or the Articles of Association of the Company (as referred
to at paragraph (b) under Documents and searches above) which would affect the conclusions in
this opinion;

	 
	(g)	 	each of the Opinion Documents has been duly executed on behalf of the Company by the
person(s) authorised by the resolutions passed at the meeting referred to above;

 

 

 

	(h)	 	each of the Opinion Documents is a legally binding, valid and enforceable obligation of all
parties to it (other than the Company) and that it is legal, valid, binding and enforceable
under its governing law;

	 
	(i)	 	the Company is resident in the United Kingdom for United Kingdom tax purposes and is resident
nowhere else;

	 
	(j)	 	no Offered Security will carry a right to interest the amount of which exceeds a reasonable
commercial return on the nominal amount of the capital; and

	 
	(k)	 	no foreign law affects the conclusions stated below.

Opinion

Subject to the qualifications set out below and to any matters not disclosed to us, it is our
opinion that, so far as the present laws of England (and where relevant current United Kingdom tax
law and HM Revenue & Customs practice) are concerned:

	2.	 	Status: The Company is a company duly incorporated with public limited liability under the
laws of England, is a validly existing company and is not in liquidation.

	 
	3.	 	Powers and authority: The Company has the corporate power to execute, deliver and perform
each of the Opinion Documents and has taken all necessary corporate action to duly authorise
the execution, delivery and performance of each of the Opinion Documents. Each of the Opinion
Documents has been duly executed and delivered by the Company.

	 
	4.	 	Legal validity: Each of the Opinion Documents and the Offered Securities constitutes a
legally binding, valid and enforceable obligation of the Company.

	 
	5.	 	Non-conflict: The execution and delivery by the Company of, and performance of its
obligations under each of the Opinion Documents will not contravene any provision of (i) any
existing English law applicable to companies generally in a manner which would render the
Company’s performance, insofar as it relates to the Company’s payment obligations, unlawful,
or (ii) its Memorandum or Articles of Association.

	 
	6.	 	Consents: No authorisations, approvals or consents of any court, governmental, judicial or
regulatory authority of or within England are required by the Company in connection with the
execution and delivery by the Company of, and performance of its obligations under each of the
Opinion Documents.

	 
	7.	 	Registration requirements: It is not necessary or advisable to file, register or record any
of the Opinion Documents in any public place or elsewhere in England in connection with the
execution and delivery by the Company of, and performance of its obligations under each of the
Opinion Documents except (for the avoidance of doubt):

	 	(a)	 	that any person in the United Kingdom (including a United Kingdom based paying
agent) who pays or credits interest to, or receives interest for the benefit of,
another person may in certain circumstances be required by HM Revenue & Customs to
provide certain
information (which may include the name and address of the beneficial owner of the
interest) to HM Revenue & Customs; and

 

 

 

	 	(b)	 	that, under the Reporting of Savings Income Information Regulations 2003, as
amended (the 2003 Regulations), a paying agent (as defined in the 2003 Regulations)
established in the United Kingdom who makes a payment of savings income to an
individual resident, or a residual entity (as defined in the 2003 Regulations)
established, in another EU member state or one of certain other non-EU countries and
territories will be required to obtain, verify, record and then provide to HM Revenue &
Customs certain information about the payee and the payment; and

	 
	 	(c)	 	that Part 7 of Finance Act 2004 contains provisions requiring the disclosure to
HM Revenue & Customs of arrangements that fall within prescribed descriptions where the
main benefit, or one of the main benefits, that might be expected to arise to any
person is the obtaining of an advantage in relation to United Kingdom tax.

	8.	 	Stamp duties: No stamp, registration or similar tax or charge is payable by the Company in
England in respect of the execution or delivery of any of the Opinion Documents or issuance of
the Offered Securities.

	 
	9.	 	Immunity: The Company is not entitled to claim immunity from suit, execution, attachment or
other legal process in England and Wales

	 
	10.	 	Jurisdiction: Assuming that each of the Opinion Documents (including the submission to the
non-exclusive jurisdiction of any federal or state court in the Borough of Manhattan in The
City of New York set out therein) is legal, valid, binding and enforceable under its governing
law, an English court will generally respect the submission by the Company to the
non-exclusive jurisdiction of the federal and state courts in the Borough of Manhattan in The
City of New York. An English court may, however, refuse to stay or set aside its own
proceedings in relation to the Opinion Documents if it considers that:

	 	(a)	 	it is a more appropriate forum for the dispute than the federal and state
courts in the Borough of Manhattan in The City of New York;

	 
	 	(b)	 	the defendant has taken steps in the proceedings before the English courts;

	 
	 	(c)	 	it has jurisdiction under Council Regulation (EC) 44/2001 of 22 December 2000
(if applicable, as applied by the Agreement made on 19 October 2005 between the
European Community and the Kingdom of Denmark on jurisdiction and the recognition and
enforcement of judgements in civil and commercial matters (OJ No. L299 16.11.2005 at
p.62)), the Brussels Convention of 1968, the Lugano Convention of 1988 or the Lugano
Convention of 2007 on jurisdiction and the enforcement of judgments (each as enacted
into English law) or as otherwise provided for under the Civil Jurisdiction and
Judgments Act 1982 (as amended); or

	 
	 	(d)	 	there is found to be no effective jurisdiction or choice of court agreement
between the parties to the Opinion Documents.

 

 

 

	11.	 	Choice of law: The choice of the laws of the State of New York as the governing law of the
Agreement and the choice of the laws of the State of New York “(including, without limitation,
Section 5-1401 of the New York General Obligations Law or any successor to such statute),
except to the extent that the Trust Indenture Act” of 1939 (as in effect at such time) “shall
be applicable and except to the extent that the law of any other jurisdiction shall
mandatorily govern” as the governing law of the Indenture (and the Offered Securities) would
be upheld as a valid choice by the courts of England, subject to and in accordance with
Regulation (EC) No. 593/2008 of 17 June 2008 on the law applicable to contractual obligations
(Rome I) (and, in the case of the Indenture, subject to and in accordance with the Recognition
of Trusts Act 1987) and provided that the relevant contractual obligation is within the scope
of, and the choice is permitted by, Rome I (or, in the case of the Indenture, the Recognition
of Trusts Act 1987).

	 
	12.	 	Enforcement of Judgments: A judgment obtained against the Company by a federal or state court
in the United States of America in any suit, action or proceeding arising out of or in
connection with the Opinion Documents or the transactions contemplated thereby could not be
enforced by registration in the English courts but the judgment would be treated as
constituting a cause of action against the Company and could be sued upon summarily in the
English courts. The English courts should enter judgment against the Company in such
proceedings, without re-examination of the merits of the original judgment, provided that:

	 	(a)	 	the original court was of competent jurisdiction,

	 
	 	(b)	 	the original judgment is final and conclusive,

	 
	 	(c)	 	the original judgment is not for multiple damages (as defined by the Protection
of Trading Interests Act 1980),

	 
	 	(d)	 	the original judgment is for a fixed sum of money,

	 
	 	(e)	 	the original judgment is not for a tax, fine or penalty,

	 
	 	(f)	 	the original judgment was not obtained by fraud,

	 
	 	(g)	 	the original judgment was not obtained in proceedings contrary to natural
justice,

	 
	 	(h)	 	the original judgment’s enforcement is not contrary to English public policy or
in violation of the Human Rights Act 1998,

	 
	 	(i)	 	enforcement proceedings are instituted within six years after the date of the
judgment, and

	 
	 	(j)	 	the original judgment is not inconsistent with an English judgment in respect
of the same point at issue.

	13.	 	[General Disclosure Package: The statements in the General Disclosure Package in the
Preliminary Offering Memorandum [in the section headed “Enforceability of Civil Liabilities”]
and in the section headed “Certain Tax Considerations” (in respect of United Kingdom taxation
only) as at the date of the General Disclosure Package and as at the date of the opinion are
correct in all material respects.]

 

 

 

Qualifications

This opinion is subject to the following qualifications:

	(a)	 	This opinion is subject to all insolvency and other laws affecting the rights of creditors
generally.

	 
	(b)	 	This opinion only deals with English law.

	 
	(c)	 	No opinion is expressed on matters of fact.

	 
	(d)	 	No account has been taken in this opinion of the exercise or future exercise of powers by the
UK Government pursuant to section 5(4) of the Protection of Trading Interests Act 1980.

	 
	(e)	 	An English court has power to stay an action where it is shown that it can, without injustice
to the plaintiff, be tried in a more convenient forum. An English court may also, at its
discretion, order a plaintiff in an action, if he is not ordinarily resident in the UK, to
provide security for costs.

	 
	(f)	 	There is doubt as to the enforceability in England and Wales of US judgments in respect of
civil judgments predicated purely on US securities laws.

	 
	(g)	 	Any provision in any agreement which amounts to an undertaking to assume the liability on
account of the absence of payment of stamp duty or an indemnity to pay stamp duty may be void.

	 
	(h)	 	The term enforceable means that a document is of a type and form enforced by the English
courts. It does not mean that each obligation will be enforced in accordance with its terms.
Certain rights and obligations may be qualified by the non-conclusivity of certificates,
doctrines of good faith and fair conduct, the availability of equitable remedies and other
matters, but in our view these qualifications would not defeat your legitimate expectations in
any material respect.

This opinion is given for the sole benefit of the persons to whom the opinion is addressed.

This opinion may not be disclosed to anyone else, except that it may be disclosed, but only on
the express basis that they may not rely on it, to:

	(i)	 	any professional adviser; or

	 
	(ii)	 	any potential successor (other than a successor to the Trustee), assignee or transferee under
the Opinion Documents (or to any other person to whom payments are to be made by reference to
the Opinion Documents); or

	 
	(iii)	 	to any regulatory authority to whose jurisdiction the Company may become subject or
recognised stock exchanges on which the Company’s securities are listed, in each case to the
extent required by those authorities or stock exchanges and to those authorities or stock
exchanges only; or

	 
	(iv)	 	as required by law or regulation.

 

 

 

SCHEDULE G-1

Form of U.S. Opinion of Simpson Thacher & Bartlett LLP,

Counsel for the Company

Ladies and Gentlemen:

We have acted as special United States counsel to PPL WEM Holdings plc, a public limited
company registered under the law of England and Wales (the “Company”) in connection with the
purchase by you of $[•] aggregate principal amount of [•]% Senior Notes due 2016 (the “2016 Notes”)
and $[•] aggregate principal amount of [•]% Senior Notes due 2021 (the “2021 Notes” and, together
with the 2016 Notes, the “Notes”) issued by the Company, pursuant to the Purchase Agreement dated
April [•], 2011 (the “Purchase Agreement”) between the Company and you, as initial purchasers (the
“Initial Purchasers”).

We have examined the Preliminary Offering Memorandum, dated April [•], relating to the sale of
the Notes (the “Preliminary Offering Memorandum”), as supplemented by the Pricing Term Sheet set
forth as Schedule B to the Purchase Agreement, dated April [•], 2011, relating to the sale of the
Notes (together with the Preliminary Offering Memorandum, the “Pricing Disclosure Package”); the
Offering Memorandum, dated April [•], 2011, relating to the sale of the Notes (the “Offering
Memorandum”); the Indenture dated as of April [•], 2011, as supplemented by the Supplemental
Indenture No. 1 dated as of April [•], 2011 (collectively, the “Indenture”) between the Company and
The Bank of New York Mellon, as trustee (the “Trustee”), relating to the Notes; the global notes
representing the Notes; and the Purchase Agreement.

 

 

 

In addition, we have examined, and have relied as to matters of fact upon, the documents
delivered to you at the closing and upon originals, or duplicates or certified or conformed copies,
of such corporate and other records, agreements, documents and other instruments and such
certificates or comparable documents of public officials and of officers and representatives of the
Company and have made such other investigations, as we have deemed relevant and necessary in
connection with the opinions hereinafter set forth.

In such examination, we have assumed the genuineness of all signatures, the legal capacity of
natural persons, the authenticity of all documents submitted to us as originals, the conformity to
original documents of all documents submitted to us as duplicates or certified or conformed copies
and the authenticity of the originals of such latter documents.

In rendering the opinions set forth in paragraphs 1, 2, and 5 below we have assumed that (1)
the Company is validly existing and in good standing under the law of England and Wales, (2) the
Company has duly authorized, executed and delivered, as applicable, the Indenture, the Notes and
the Purchase Agreement in accordance with its articles of association and the law of England and
Wales, (3) the execution, delivery and performance by the Company of the Indenture, the Notes and
the Purchase Agreement, as applicable, do not violate the law of England and Wales or any other
jurisdiction (except that no such assumption is made with respect to the law of the State of New
York and the federal law of the United States) and (4) the execution, delivery and performance by
the Company of the Indenture, the Notes and the Purchase Agreement, as applicable, do not
constitute a breach or violation of any agreement or instrument which is binding upon the Company
or its articles of association.

 

 

 

Based upon the foregoing, and subject to the qualifications, assumptions and limitations
stated herein, we are of the opinion that:

1. The Indenture has been duly executed and delivered by the Company in accordance with
the law of the State of New York and, assuming that the Indenture is the valid and legally
binding obligation of the Trustee, the Indenture constitutes a valid and legally binding
obligation of the Company enforceable against the Company, in accordance with its terms.

2. The Notes have been duly executed and issued by the Company in accordance with the
law of the State of New York and, assuming due authentication thereof by the Trustee and
upon payment and delivery in accordance with the Purchase Agreement, will constitute valid
and legally binding obligations of the Company enforceable against the Company in accordance
with their terms and entitled to the benefits of the Indenture.

3. The statements made in each of the Pricing Disclosure Package and the Offering
Memorandum under the caption “Description of the Notes”, insofar as they purport to
constitute summaries of certain terms of documents referred to therein, constitute accurate
summaries of the terms of such documents in all material respects.

4. The statements made in the Pricing Disclosure Package under the caption “Certain Tax
Considerations—Certain United States Federal Income Tax Consequences,” insofar as they
purport to constitute summaries of matters of United States federal tax law and regulations
or legal conclusions with respect thereto, constitute accurate summaries of the matters
described therein in all material respects.

5. The Purchase Agreement has been duly executed and delivered by the Company in
accordance with the law of the State of New York.

6. The issue and sale of the Notes by the Company, the execution, delivery and
performance by the Company of the Purchase Agreement and the execution and delivery of the
Indenture by the Company will not violate any U.S. federal or New York State statute or any
rule or regulation that has been issued pursuant to any U.S. federal or New York State
statute or any order known to us issued pursuant to any U.S. federal or New York State
statute by any U.S. federal or New York State court or governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of their properties, except
that it is understood that no opinion is given in this paragraph 6 with respect to any U.S.
federal or state securities law or any rule or regulation issued pursuant to any U.S.
federal or state securities law.

7. No consent, approval, authorization, order, registration or qualification of or with
any U.S. federal or New York State governmental agency or body or, to our knowledge, any
U.S. federal or New York State court is required for the issue and sale of the Notes by the
Company and the compliance by the Company with the Purchase Agreement and the Indenture,
except that it is understood that no opinion is given in this paragraph 7 with respect to
any U.S. federal or state securities law or any rule or regulation issued pursuant to any
U.S. federal or state securities law.

 

 

 

8. No registration under the Securities Act of 1933, as amended, of the Notes and no
qualification of the Indenture under the Trust Indenture Act of 1939, as amended, is
required for the offer and sale of the Notes by the Company to the Initial Purchasers or the
reoffer and resale of the Notes by the Initial Purchasers to the initial purchasers
therefrom solely in the manner contemplated by the Offering Memorandum, the Purchase
Agreement and the Indenture.

9. The Company is not an “investment company” within the meaning of and subject to
regulation under the Investment Company Act of 1940, as amended.

Our opinions set forth in paragraphs 1 and 2 above are subject to (i) the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, (ii) general equitable principles (whether
considered in a proceeding in equity or at law), (iii) an implied covenant of good faith and fair
dealing and (iv) the effects of the possible judicial application of foreign laws or foreign
governmental or judicial action affecting creditors’ rights. In addition, we express no opinion as
to the validity, legally binding effect or enforceability of the waiver of rights and defenses
contained in Section [•] of the Indenture.

In connection with the provisions of the Purchase Agreement and the Indenture and the
comparable provisions of the Notes whereby the parties thereto submit to the jurisdiction of the
U.S. federal and state courts in the Borough of Manhattan in the City, County and State of New
York, we note the limitations of 28 U.S.C. §§ 1331 and 1332 on U.S. federal court jurisdiction. In
connection with the provisions of the Indenture and the Purchase Agreement which relate to forum
selection (including, without limitation, any waiver of any objection to venue or any objection
that a court is an inconvenient forum), we note that under NYCPLR §510 a New York State court may
have discretion to transfer the place of trial, and under 28 U.S.C. §1404(a) a U.S. District Court
has discretion to transfer an action from one U.S. federal court to another, and we
also note that a New York State court and a U.S. District Court may dismiss an action on the
ground that such court is an improper venue or inconvenient forum.

 

 

 

We note that (i) a New York State statute provides that, with respect to a foreign currency
obligation, a New York State court shall render a judgment or decree in such foreign currency and
such judgment or decree shall be converted into currency of the United States at the rate of
exchange prevailing on the date of entry of such judgment or decree and (ii) with respect to a
foreign currency obligation, a U.S. federal court sitting in the State of New York may award
judgment in U.S. dollars, provided that we express no opinion as to the rate of exchange that such
court would apply.

We do not express any opinion herein concerning any law other than the law of the State of New
York and the federal law of the United States. With respect to matters of the law of England and
Wales, we understand that you are relying on the opinion of Allen & Overy LLP, dated the date
hereof.

This opinion letter is rendered to you in connection with the above-described transaction.
This opinion letter may not be relied upon by you for any other purpose, or relied upon by, or
furnished to, any other person, firm or corporation without our prior written consent, except that
the Trustee may rely upon paragraphs 1, 2, 5, 6, 7, 8 and 9 above, to the same extent as if the
opinions in said paragraphs were addressed to it, subject to the qualifications, assumptions and
limitations relating thereto.

 

 

 

SCHEDULE G-2

Disclosure Letter of Simpson Thacher & Bartlett LLP,

Counsel for the Company

Ladies and Gentlemen:

We have acted as United States counsel to PPL WEM Holdings plc, a public limited company
registered under the law of England and Wales (the “Company”) in connection with the purchase by
you of $[•] aggregate principal amount of [•]% Senior Notes due 20[•] (the “20[•] Notes”) and $[•]
aggregate principal amount of [•]% Senior Notes due 20[•] (the “20[•] Notes” and together with the
20[•] Notes, the “Notes”) issued by the Company, pursuant to the Purchase Agreement dated April
[•], 2011 between the Company and you, as initial purchasers.

We have not independently verified the accuracy, completeness or fairness of the statements
made or included in the Preliminary Offering Memorandum, dated April [•], 2011, relating to the
sale of the Notes (the “Preliminary Offering Memorandum”), as supplemented by the Pricing Term
Sheet set forth as Schedule B to the Purchase Agreement, dated April [•], 2011, relating to the
sale of the Notes (together with the Preliminary Offering Memorandum, the “Pricing Disclosure
Package”) or the Offering Memorandum, dated April [•], 2011, relating to the sale of the Notes (the
“Offering Memorandum”), and we take no responsibility therefor, except as and to the extent set
forth in numbered paragraphs 3 and 4 of our opinion letter to you dated the date hereof.

 

 

 

In connection with, and under the circumstances applicable to, the offering of the Notes, we
participated in conferences with certain officers and employees of the Company, representatives of
PricewaterhouseCoopers LLP, representatives of Ernst & Young LLP, your representatives and your
counsel, in the course of the preparation by the Company of the Pricing
Disclosure Package and the Offering Memorandum and also reviewed certain corporate and other
records and documents furnished to us by the Company, as well as the documents delivered to you at
the closing. Certain of such corporate and other records and documents were governed by the laws
of England and Wales and, accordingly, we necessarily relied upon directors, officers and employees
of the Company, counsel to the Company in such jurisdiction and other persons in evaluating such
corporate and other records and documents. Based upon our review of the Pricing Disclosure Package
and the Offering Memorandum, our participation in the conferences referred to above, our review of
the corporate and other records and documents as described above, as well as our understanding of
the U.S. federal securities laws and the experience we have gained in our practice thereunder,
nothing has come to our attention that causes us to believe that (a) the Pricing Disclosure
Package, as of the time of the pricing of the offering of the Notes on April [•], 2011, contained
any untrue statement of a material fact or omitted to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not
misleading, or (b) the Offering Memorandum, as of its date or as of the date hereof, contained or
contains any untrue statement of a material fact or omitted or omits to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading, except that we express no belief in either of clauses (a) or (b)
above with respect to the financial statements or other financial or statistical data contained in
or omitted from the Pricing Disclosure Package or the Offering Memorandum.

This letter is delivered to you in connection with the above-described transaction. This
letter may not be relied upon by you for any other purpose, or relied upon by, or furnished to, any
other person, firm or corporation.Exhibit 10.2

Exhibit 10.2

PPL WEM HOLDINGS PLC,

Issuer

to

THE BANK OF NEW YORK MELLON,

as Trustee

Indenture

Dated as of April 21, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	PARTIES
	 	 	1	 
	RECITAL
	 	 	1	 
	 
	 	 	 	 
	ARTICLE ONE

	 
	 	 	 	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	 
	 	 	 	 
	SECTION 101. Definitions
	 	 	1	 
	“Act”
	 	 	2	 
	“Additional Amounts”
	 	 	2	 
	“Affiliate”
	 	 	2	 
	“Authenticating Agent”
	 	 	2	 
	“Authorized Officer”
	 	 	2	 
	“Board of Directors”
	 	 	2	 
	“Board Resolution”
	 	 	2	 
	“Business Day”
	 	 	2	 
	“Commission”
	 	 	2	 
	“Company”
	 	 	2	 
	“Company Order” and “Company Request”
	 	 	3	 
	“Corporate Trust Office”
	 	 	3	 
	“Corporation”
	 	 	3	 
	“Debt”
	 	 	3	 
	“Defaulted Interest”
	 	 	3	 
	“Discount Security”
	 	 	3	 
	“Dollar” or “$”
	 	 	3	 
	“Eligible Obligations”
	 	 	3	 
	“Event of Default”
	 	 	3	 
	“Exchange Act”
	 	 	3	 
	“Execution Date”
	 	 	3	 
	“Government Obligations”
	 	 	3	 
	“Holder”
	 	 	3	 
	“Indenture”
	 	 	4	 
	“interest”
	 	 	4	 
	“Interest Payment Date”
	 	 	4	 
	“Lien”
	 	 	4	 
	“Maturity”
	 	 	4	 
	“Notice of Default”
	 	 	4	 
	“Officer’s Certificate”
	 	 	4	 
	“Opinion of Counsel”
	 	 	4	 
	“Outstanding”
	 	 	4	 
	“Paying Agent”
	 	 	5	 
	“Permitted Lien”
	 	 	5	 
	“Periodic Offering”
	 	 	5	 
	“Person”
	 	 	6	 
	“Place of Payment”
	 	 	6	 
	“Predecessor Security”
	 	 	6	 
	“Redemption Date”
	 	 	6	 
	“Redemption Price”
	 	 	6	 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	“Regular Record Date”
	 	 	6	 
	“Relevant Taxing Jurisdiction”
	 	 	6	 
	“Required Currency”
	 	 	6	 
	“Responsible Officer”
	 	 	6	 
	“Secured Obligations”
	 	 	6	 
	“Securities”
	 	 	6	 
	“Securities Act”
	 	 	6	 
	“Security Register” and “Security Registrar”
	 	 	6	 
	“Special Record Date”
	 	 	6	 
	“Stated Interest Rate”
	 	 	6	 
	“Stated Maturity”
	 	 	7	 
	“supplemental indenture” or “indenture supplemental thereto”
	 	 	7	 
	“Taxes”
	 	 	7	 
	“Tranche”
	 	 	7	 
	“Trustee”
	 	 	7	 
	“Trust Indenture Act”
	 	 	7	 
	“United Kingdom”
	 	 	7	 
	“United States”
	 	 	7	 
	SECTION 102. Compliance Certificates and Opinions
	 	 	7	 
	SECTION 103. Form of Documents Delivered to Trustee
	 	 	8	 
	SECTION 104. Acts of Holders
	 	 	9	 
	SECTION 105. Notices, Etc. to Trustee or Company
	 	 	11	 
	SECTION 106. Notice to Holders of Securities; Waiver
	 	 	12	 
	SECTION 107. Conflict with Trust Indenture Act
	 	 	12	 
	SECTION 108. Effect of Headings and Table of Contents
	 	 	12	 
	SECTION 109. Successors and Assigns
	 	 	12	 
	SECTION 110. Separability Clause
	 	 	12	 
	SECTION 111. Benefits of Indenture
	 	 	12	 
	SECTION 112. Governing Law
	 	 	13	 
	SECTION 113. Legal Holidays
	 	 	13	 
	SECTION 114. Waiver of Jury Trial
	 	 	13	 
	SECTION 115. Force Majeure
	 	 	13	 
	SECTION 116. Submission to Jurisdiction; Waiver of Immunity
	 	 	13	 
	SECTION 117. Appointment of Agent for Service of Process
	 	 	14	 
	 
	 	 	 	 
	ARTICLE TWO

	 
	 	 	 	 
	SECURITY FORMS

	 
	 	 	 	 
	SECTION 201. Forms Generally
	 	 	14	 
	SECTION 202. Form of Trustee’s Certificate of Authentication
	 	 	15	 
	 
	 	 	 	 
	ARTICLE THREE

	 
	 	 	 	 
	THE SECURITIES

	 
	 	 	 	 
	SECTION 301. Amount Unlimited; Issuable in Series
	 	 	15	 
	SECTION 302. Denominations
	 	 	18	 
	SECTION 303. Execution and Dating; Authentication and Delivery
	 	 	18	 
	SECTION 304. Temporary Securities
	 	 	20	 
	SECTION 305. Registration, Registration of Transfer and Exchange
	 	 	21	 

 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	22	 
	SECTION 307. Payment of Interest; Interest Rights Preserved
	 	 	22	 
	SECTION 308. Persons Deemed Owners
	 	 	23	 
	SECTION 309. Cancellation
	 	 	24	 
	SECTION 310. Computation of Interest
	 	 	24	 
	SECTION 311. Payment to Be in Proper Currency
	 	 	24	 
	SECTION 312. Extension of Interest Payment 
	 	 	24	 
	
SECTION 313. CUSIP Numbers
	 	 	24	 
	 
	 	 	 	 
	ARTICLE FOUR

	 
	 	 	 	 
	REDEMPTION OF SECURITIES

	 
	 	 	 	 
	SECTION 401. Applicability of Article
	 	 	25	 
	SECTION 402. Election to Redeem; Notice to Trustee
	 	 	25	 
	SECTION 403. Selection of Securities to Be Redeemed
	 	 	25	 
	SECTION 404. Notice of Redemption
	 	 	26	 
	SECTION 405. Securities Payable on Redemption Date
	 	 	27	 
	SECTION 406. Securities Redeemed in Part
	 	 	27	 
	SECTION 407. Optional Redemption Due to Changes in Tax Treatment
	 	 	27	 
	 
	 	 	 	 
	ARTICLE FIVE

	 
	 	 	 	 
	SINKING FUNDS

	 
	 	 	 	 
	SECTION 501. Applicability of Article
	 	 	28	 
	SECTION 502. Satisfaction of Sinking Fund Payments with Securities
	 	 	28	 
	SECTION 503. Redemption of Securities for Sinking Fund
	 	 	29	 
	 
	 	 	 	 
	ARTICLE SIX

	 
	 	 	 	 
	COVENANTS

	 
	 	 	 	 
	SECTION 601. Payment of Principal, Premium and Interest
	 	 	29	 
	SECTION 602. Maintenance of Office or Agency
	 	 	29	 
	SECTION 603. Money for Securities Payments to Be Held in Trust
	 	 	30	 
	SECTION 604. Additional Amounts

	 	 	31	 
	
SECTION 605. Negative Pledge

	 	 	33	 
	
SECTION 606. Financial Statements
	 	 	35	 
	SECTION 607. Existence as a Corporation
	 	 	36	 
	SECTION 608. Annual Officer’s Certificate
	 	 	36	 
	
SECTION 609. Waiver of Certain Covenants
	 	 	36	 
	 
	 	 	 	 
	ARTICLE SEVEN

	 
	 	 	 	 
	SATISFACTION AND DISCHARGE

	 
	 	 	 	 
	SECTION 701. Satisfaction and Discharge of Securities
	 	 	37	 
	SECTION 702. Satisfaction and Discharge of Indenture
	 	 	39	 
	SECTION 703. Application of Trust Money
	 	 	41	 

 

iii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE EIGHT

	 
	 	 	 	 
	EVENTS OF DEFAULT; REMEDIES

	 
	 	 	 	 
	SECTION 801. Events of Default
	 	 	41	 
	SECTION 802. Acceleration of Maturity; Rescission and Annulment
	 	 	42	 
	SECTION 803. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	43	 
	SECTION 804. Trustee May File Proofs of Claim
	 	 	44	 
	SECTION 805. Trustee May Enforce Claims Without Possession of Securities
	 	 	44	 
	SECTION 806. Application of Money Collected
	 	 	45	 
	SECTION 807. Limitation on Suits
	 	 	45	 
	SECTION 808. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	46	 
	SECTION 809. Restoration of Rights and Remedies
	 	 	46	 
	SECTION 810. Rights and Remedies Cumulative
	 	 	46	 
	SECTION 811. Delay or Omission Not Waiver
	 	 	46	 
	SECTION 812. Control by Holders of Securities
	 	 	46	 
	SECTION 813. Waiver of Past Defaults
	 	 	47	 
	SECTION 814. Undertaking for Costs
	 	 	47	 
	SECTION 815. Waiver of Usury, Stay or Extension Laws
	 	 	47	 
	 
	 	 	 	 
	 
	 	 	 	 
	ARTICLE NINE

	 
	 	 	 	 
	THE TRUSTEE

	 
	 	 	 	 
	SECTION 901. Certain Duties and Responsibilities
	 	 	48	 
	SECTION 902. Notice of Default
	 	 	49	 
	SECTION 903. Certain Rights of Trustee
	 	 	49	 
	SECTION 904. Not Responsible for Recitals or Issuance of Securities
	 	 	50	 
	SECTION 905. May Hold Securities
	 	 	50	 
	SECTION 906. Money Held in Trust
	 	 	51	 
	SECTION 907. Compensation and Reimbursement
	 	 	51	 
	SECTION 908. Disqualification; Conflicting Interests
	 	 	52	 
	SECTION 909. Corporate Trustee Required; Eligibility
	 	 	52	 
	SECTION 910. Resignation and Removal; Appointment of Successor
	 	 	52	 
	SECTION 911. Acceptance of Appointment by Successor
	 	 	54	 
	SECTION 912. Merger, Conversion, Consolidation or Succession to Business
	 	 	55	 
	SECTION 913. Preferential Collection of Claims Against Company
	 	 	55	 
	SECTION 914. Appointment of Authenticating Agent
	 	 	55	 
	SECTION 915. Co-trustee and Separate Trustees
	 	 	57	 
	 
	 	 	 	 
	ARTICLE TEN

	 
	 	 	 	 
	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

	 
	 	 	 	 
	SECTION 1001. Lists of Holders
	 	 	58	 
	SECTION 1002. Reports by Trustee and Company
	 	 	58	 
	 
	 	 	 	 

 

iv

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE ELEVEN

	 
	 	 	 	 
	CONSOLIDATION, MERGER, CONVEYANCE OR OTHER TRANSFER

	 
	 	 	 	 
	SECTION 1101. Company May Consolidate, Etc., Only on Certain Terms
	 	 	59	 
	SECTION 1102. Successor Corporation Substituted
	 	 	59	 
	SECTION 1103. Release of Company upon Conveyance or Other Transfer
	 	 	60	 
	SECTION 1104. Limitations
	 	 	60	 
	 
	 	 	 	 
	ARTICLE TWELVE

	 
	 	 	 	 
	SUPPLEMENTAL INDENTURES

	 
	 	 	 	 
	SECTION 1201. Supplemental Indentures Without Consent of Holders
	 	 	60	 
	SECTION 1202. Supplemental Indentures With Consent of Holders
	 	 	62	 
	SECTION 1203. Execution of Supplemental Indentures
	 	 	63	 
	SECTION 1204. Effect of Supplemental Indentures
	 	 	63	 
	SECTION 1205. Conformity With Trust Indenture Act
	 	 	63	 
	SECTION 1206. Reference in Securities to Supplemental Indentures
	 	 	64	 
	SECTION 1207. Modification Without Supplemental Indenture
	 	 	64	 
	 
	 	 	 	 
	ARTICLE THIRTEEN

	 
	 	 	 	 
	MEETINGS OF HOLDERS; ACTION WITHOUT MEETING

	 
	 	 	 	 
	SECTION 1301. Purposes for Which Meetings May Be Called
	 	 	64	 
	SECTION 1302. Call, Notice and Place of Meetings
	 	 	64	 
	SECTION 1303. Persons Entitled to Vote at Meetings
	 	 	65	 
	SECTION 1304. Quorum; Action
	 	 	65	 
	SECTION 1305. Attendance at Meetings; Determination of Voting Rights;
Conduct and Adjournment of Meetings
	 	 	66	 
	SECTION 1306. Counting Votes and Recording Action of Meetings
	 	 	67	 
	SECTION 1307. Action Without Meeting
	 	 	67	 
	 
	 	 	 	 
	ARTICLE FOURTEEN

	 
	 	 	 	 
	IMMUNITY OF MEMBERS, OFFICERS, DIRECTORS AND MANAGERS

	 
	 	 	 	 
	SECTION 1401. Liability Limited
	 	 	67	 
	 
	 	 	 	 
	Testimonium 
	 	 	69	 
	 
	 	 	 	 
	Signatures and Seals 
	 	 	70	 

 

v

 

PPL WEM HOLDINGS plc

Reconciliation and tie between Trust Indenture Act of 1939

and Indenture, dated as of April 21, 2011

	 	 	 
	Trust Indenture Act Section	 	Indenture Section
	 
	 
	§310 (a)(1)
	 	909
	(a)(2)
	 	909
	(a)(3)
	 	915
	(a)(4)
	 	Not Applicable
	(b)
	 	908, 910
	§311 (a)
	 	913
	(b)
	 	913
	§312 (a)
	 	1001
	(b)
	 	1001
	(c)
	 	1001
	§313 (a)
	 	1002
	(b)(1)
	 	Not Applicable
	(b)(2)
	 	1002
	(c)
	 	1002
	(d)
	 	1002
	§314 (a)
	 	1002
	(a)(4)
	 	608
	(b)
	 	Not Applicable
	(c)(1)
	 	102
	(c)(2)
	 	102
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	§315 (a)
	 	901(a)
	(b)
	 	902
	(c)
	 	901(b)
	(d)
	 	901(c)
	(d)(1)
	 	901(a)(i), 901(c)(i)
	(d)(2)
	 	901(c)(ii)
	(d)(3)
	 	901(c)(iii)
	(e)
	 	814
	§316 (a)
	 	812
	 
	 	813
	(a)(1)(A)
	 	802
	 
	 	812
	(a)(1)(B)
	 	813
	(a)(2)
	 	Not Applicable
	(b)
	 	808
	§317 (a)(1)
	 	803
	(a)(2)
	 	804
	(b)
	 	603
	§318 (a)
	 	107

 

i

 

INDENTURE, dated as of April 21, 2011, between PPL WEM HOLDINGS PLC, a public limited company
duly organized and existing under the laws of England and Wales (herein called the “Company”),
having its principal office at Avonbank Feeder Road, Bristol BS2 0TB, United Kingdom, and THE BANK
OF NEW YORK MELLON, a New York corporation, having its principal corporate trust office at 101
Barclay Street, New York, New York 10286, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its debt securities (herein called the “Securities”), to be
issued in one or more series as contemplated herein.

All acts necessary to make this Indenture a valid agreement of the Company, in accordance with
its terms, have been performed.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and ratable benefit of all Holders of
the Securities or of series thereof (except as otherwise contemplated herein), as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101. Definitions.

For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

(a) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

(b) all terms used herein without definition which are defined in the Trust Indenture
Act as in effect on the Execution Date, either directly or by reference therein, have the
meanings assigned to them therein;

(c) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles in the United Kingdom, and,
except as otherwise herein expressly provided, the term “generally accepted accounting
principles” with respect to any computation required or permitted hereunder shall mean such
accounting principles as are generally accepted in the United Kingdom at the date of such
computation or, at the election of the Company from time to time, at the Execution Date;
provided, however, that in determining generally accepted accounting principles applicable
to the Company, effect shall be given, to the extent required, to any order, rule or
regulation of any administrative agency, regulatory authority or other governmental body
having jurisdiction over the Company or any of its subsidiaries;

 

1

 

(d) any reference to an “Article” or a “Section” refers to an Article or a Section, as
the case may be, of this Indenture; and

(e) the words “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision.

Certain terms, used principally in Article Nine, are defined in that Article.

“Act”, when used with respect to any Holder of a Security, has the meaning specified in Section
104.

“Additional Amounts” has the meaning specified in Section 604.

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct generally the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

“Authenticating Agent” means any Person or Persons (other than the Company or an Affiliate of the
Company) authorized by the Trustee to act on behalf of the Trustee to authenticate the Securities
of one or more series.

“Authorized Officer” means any member of the Board of Directors or any other Person duly authorized
by the Company to act in respect of matters relating to this Indenture.

“Board of Directors” means either the board of directors of the Company or any committee thereof
duly authorized to act in respect of matters relating to this Indenture.

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, and delivered to the Trustee.

“Business Day”, when used with respect to a Place of Payment or any other particular location
specified in the Securities or this Indenture, means any day, other than a Saturday or Sunday,
which is not a day on which banking institutions or trust companies in London, England, The City of
New York, New York, or such Place of
Payment or other location are generally authorized or required by law, regulation or executive
order to remain closed, except as may be otherwise specified as contemplated by Section 301.

“Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act, or, if at any time after the Execution Date such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture Act, then the body,
if any, performing such duties at such time.

“Company” means the Person named as the “Company” in the first paragraph of this Indenture until a
successor Person shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter “Company” shall mean such successor Person.

 

2

 

“Company Order” and “Company Request” mean, respectively, a written order or request, as the case
may be, signed in the name of the Company by an Authorized Officer and delivered to the Trustee.

“Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered, which office at the Execution Date is
located at 101 Barclay Street, 4E, New York, New York 10286, Attention: Corporate Trust
Administration.

“Corporation” means a corporation, association, company, joint stock company, limited liability
company, public limited company or business trust, and references to “corporate” and other
derivations of “corporation” herein shall be deemed to include appropriate derivations of such
entities.

“Debt” has the meaning specified in Section 605.

“Defaulted Interest” has the meaning specified in Section 307.

“Discount Security” means any Security which provides for an amount less than the principal amount
thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 802.

“Dollar” or “$” means a dollar or other equivalent unit in such coin or currency of the United
States of America as at the time shall be legal tender for the payment of public and private debts.

“Eligible Obligations” means:

(a) with respect to Securities denominated in Dollars, Government Obligations; or

(b) with respect to Securities denominated in a currency other than Dollars or in a
composite currency, such other obligations or instruments as shall be specified with respect
to such Securities, as contemplated by Section 301.

“Event of Default” has the meaning specified in Section 801.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Execution Date” means April 21, 2011.

“Government Obligations” means securities which are (a) (i) direct obligations of the United States
where the payment or payments thereunder are supported by the full faith and credit of the United
States or (ii) obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States where the timely payment or payments thereunder are
unconditionally guaranteed as a full faith and credit obligation by the United States or (b)
depository receipts issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as
custodian with respect to any such Government Obligation or a specific payment of interest on or
principal of or other amount with respect to any such Government Obligation held by such custodian
for the account of the holder of a depository receipt, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable to the holder of
such depository receipt from any amount received by the custodian in respect of the Government
Obligation or the specific payment of interest on or principal of or other amount with respect to
the Government Obligation evidenced by such depository receipt.

“Holder” means a Person in whose name a Security is registered in the Security Register.

 

3

 

“Indenture” means this instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this Indenture and any such supplemental indenture, respectively. The term “Indenture”
shall also include the terms of particular series of Securities established as contemplated by
Section 301.

“interest”, when used with respect to a Discount Security means interest, if any, borne by such Security at a
Stated Interest Rate rather than interest calculated at any imputed rate.

“Interest Payment Date”, when used with respect to any Security, means the Stated Maturity of an
installment of interest on such Security.

“Lien” means any lien, mortgage, deed of trust, pledge or security interest, intended to secure the
repayment of Debt, except for any Permitted Lien.

“Maturity”, when used with respect to any Security, means the date on which the principal of such
Security or an installment of principal becomes due and payable as provided in such Security or in
this Indenture, whether at the Stated Maturity, by declaration of acceleration, upon call for
redemption or otherwise.

“Notice of Default” means a written notice of the kind specified in Section 801(c).

“Officer’s Certificate” means a certificate signed by an Authorized Officer of the Company and
delivered to the Trustee.

“Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company and who
shall be acceptable to the Trustee.

“Outstanding”, when used with respect to Securities, means, as of the date of determination, all
Securities theretofore authenticated and delivered under this Indenture, except:

(a) Securities theretofore canceled or delivered to the Trustee for cancellation;

(b) Securities deemed to have been paid for all purposes of this Indenture in
accordance with Section 701 (whether or not the Company’s indebtedness in respect thereof
shall be satisfied and discharged for any other purpose); and

(c) Securities which have been paid pursuant to Section 306 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it and the Company that such Securities are
held by a bona fide purchaser in whose hands such Securities are valid obligations of the
Company;

 

4

 

provided, however, that in determining whether or not the Holders of the requisite principal amount
of the Securities Outstanding under this Indenture, or the Outstanding Securities of any series or
Tranche, have
given any request, demand, authorization, direction, notice, consent or waiver hereunder or whether
or not a quorum is present at a meeting of Holders of Securities,

(x) Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor (unless the Company, such Affiliate or
such obligor owns all Securities Outstanding under this Indenture, or all Outstanding
Securities of each such series and each such Tranche, as the case may be, determined without
regard to this clause (x)) shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver or upon any such
determination as to the presence of a quorum, only Securities which the Trustee knows to be
so owned shall be so disregarded; provided, however, that Securities so owned which have
been pledged in good faith may be regarded as Outstanding if it is established to the
reasonable satisfaction of the Trustee that the pledgee, and not the Company, or any such
other obligor or Affiliate of either thereof, has the right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor;

(y) the principal amount of a Discount Security that shall be deemed to be Outstanding
for such purposes shall be the amount of the principal thereof that would be due and payable
as of the date of such determination upon a declaration of acceleration of the Maturity
thereof pursuant to Section 802; and

(z) the principal amount of any Security which is denominated in a currency other than
Dollars or in a composite currency that shall be deemed to be Outstanding for such purposes
shall be the amount of Dollars which could have been purchased by the principal amount (or,
in the case of a Discount Security, the Dollar equivalent on the date determined as set
forth below of the amount determined as provided in (y) above) of such currency or composite
currency evidenced by such Security, in each such case certified to the Trustee in an
Officer’s Certificate, based (i) on the average of the mean of the buying and selling spot
rates quoted by three banks which are members of the New York Clearing House Association
selected by the Company in effect at 11:00 A.M. (New York time) in The City of New York on
the fifth Business Day preceding any such determination or (ii) if on such fifth Business
Day it shall not be possible or practicable to obtain such quotations from such three banks,
on such other quotations or alternative methods of determination which shall be as
consistent as practicable with the method set forth in (i) above;

provided, further, that in the case of any Security the principal of which is payable from time to
time without presentment or surrender, the principal amount of such Security that shall be deemed
to be Outstanding at any time for all purposes of this Indenture shall be the original principal
amount thereof less the aggregate amount of principal thereof theretofore paid.

“Paying Agent” means any Person, including the Company, authorized by the Company to pay the
principal of, and premium, if any, or interest, if any, on any Securities on behalf of the Company.

“Permitted Lien” has the meaning specified in Section 605.

“Periodic Offering”
means an offering of Securities of a series from time to time any or all of the specific terms
of which Securities, including, without limitation, the rate or rates of interest, if any, thereon,
the Stated Maturity or Maturities thereof and the redemption provisions, if any, with respect
thereto, are to be determined by the Company or its agents from time to time subsequent to the
initial request for the authentication and delivery of such Securities by the Trustee, as
contemplated in Section 301 and clause (b) of Section 303.

 

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“Person” means any individual, corporation, limited liability company, public limited company,
partnership, joint venture, association, joint stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other entity.

“Place of Payment”, when used with respect to the Securities of any series, or Tranche thereof,
means the place or places, specified as contemplated by Section 301, at which, subject to Section
602, principal of and premium, if any, and interest, if any, on the Securities of such series or
Tranche are payable.

“Predecessor Security” of any particular Security means every previous Security evidencing all or a
portion of the same debt as that evidenced by such particular Security; and, for the purposes of
this definition, any Security authenticated and delivered under Section 306 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt
as the mutilated, destroyed, lost or stolen Security.

“Redemption Date”, when used with respect to any Security to be redeemed, means the date fixed for
such redemption by or pursuant to this Indenture.

“Redemption Price”, when used with respect to any Security to be redeemed, means the price at which
it is to be redeemed pursuant to this Indenture.

“Regular Record Date” for the interest payable on any Interest Payment Date on the Securities of
any series means the date specified for that purpose as contemplated by Section 301.

“Relevant Taxing Jurisdiction” has the meaning specified in Section 604.

“Required Currency” has the meaning specified in Section 311.

“Responsible Officer”, when used with respect to the Trustee, means any officer within the corporate trust department of
the Trustee having direct responsibility for the administration of this Indenture, or any other
officer to whom any corporate trust matter is referred because of such officer’s knowledge of and
familiarity with the particular subject.

“Secured Obligations” has the meaning specified in Section 605.

“Securities” has the meaning stated in the recital of this Indenture and more particularly means
any securities authenticated and delivered under this Indenture.

“Securities Act” means the Securities Act of 1933, as amended.

“Security Register” and “Security Registrar” have the respective meanings specified in Section 305.

“Special Record Date” for the payment of any Defaulted Interest on the Securities of any series
means a date fixed by the Trustee pursuant to Section 307.

“Stated Interest Rate” means a rate (whether fixed or variable) at which an obligation by its terms
is stated to bear simple interest. Any calculation or other determination to be made under this
Indenture by reference to the Stated Interest Rate on a Security shall be made without regard to
the effective interest cost to the Company of such Security and without regard to the Stated
Interest Rate on, or the effective cost to the Company of, any other indebtedness the Company’s
obligations in respect of which are evidenced or secured in whole or in part by such Security.

 

6

 

“Stated Maturity”, when used with respect to any Security or any obligation or any installment of
principal thereof or interest thereon, means the date on which the principal of such obligation or
such installment of principal or interest is stated to be due and payable (without regard to any
provisions for redemption, prepayment, acceleration, purchase or extension).

“supplemental indenture” or “indenture supplemental thereto“means an instrument supplementing or
amending this Indenture executed and delivered pursuant to Article Twelve.

“Taxes” has the meaning specified in Section 604.

“Tranche” means a group of Securities which (a) are of the same series and (b) have identical
terms, notwithstanding differences as to principal amount, date of issuance, initial Interest
Payment Date and/or initial interest accrual date.

“Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture until a
successor Trustee shall have become such with respect to one or more series of Securities pursuant
to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each
Person who is then a Trustee hereunder, and if at any time there is more than one such Person,
“Trustee” as used with respect to the Securities of any series shall mean the Trustee with respect
to Securities of that series.

“Trust Indenture Act” means, as of any time, the Trust Indenture Act of 1939 as in effect at such
time.

“United Kingdom” means the United Kingdom of Great Britain and Northern Ireland.

“United States” means the United States of America, its territories, its possessions and other
areas subject to its jurisdiction.

SECTION 102. Compliance Certificates and Opinions.

Except as otherwise expressly provided in this Indenture, upon any application or request by
the Company to the Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with and an
Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or opinion need be
furnished.

Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

(a) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

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

 

7

 

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

(d) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.

SECTION 103. Form of Documents Delivered to Trustee.

(a) Any Officer’s Certificate may be based (without further examination or investigation),
insofar as it relates to or is dependent upon legal matters, upon an opinion of, or representations
by, counsel, and, insofar as it relates to or is dependent upon matters which are subject to
verification by an expert in accounting or financial matters, upon a certificate or opinion of, or
representations by, such an expert, unless, in any case, such officer has actual knowledge that the
certificate or opinion or representations with respect to the matters upon which such Officer’s
Certificate may be based as aforesaid are erroneous.

Any certificate of an expert in accounting or financial matters may be based (without further
examination or investigation), insofar as it relates to or is dependent upon legal matters, upon an
opinion of, or representations by, counsel, and insofar as it relates to or is dependent upon
factual matters, information with respect to which is in the possession of the Company and which
are not subject to verification by such an expert, upon a certificate or opinion of, or
representations by, an officer or officers of the Company, unless, in any case, such expert has
actual knowledge that the certificate or opinion or representations with respect to the matters
upon which his certificate or opinion may be based as aforesaid are erroneous.

Any Opinion of Counsel may be based (without further examination or investigation), insofar as
it relates to or is dependent upon factual matters, information with respect to which is in the
possession of the Company, upon a certificate of, or representations by, an officer or officers of
the Company, and, insofar as it relates to or is dependent upon matters which are subject to
verification by an expert in accounting or financial matters upon a certificate or opinion of, or
representations by, such an expert, unless such counsel has actual knowledge that the certificate
or opinion or representations with respect to the matters upon which his opinion may be based as
aforesaid are erroneous. In addition, any Opinion of Counsel may be based (without further
examination or investigation), insofar as it relates to or is dependent upon matters covered in an
Opinion of Counsel rendered by other counsel, upon such other Opinion of Counsel, unless such
counsel has actual knowledge that the Opinion of Counsel rendered by such other counsel with
respect to the matters upon which his Opinion of Counsel may be based as aforesaid are erroneous.
If, in order to render any Opinion of Counsel provided for herein, the signer thereof shall deem it
necessary that additional facts or matters be stated in any Officer’s Certificate provided for
herein, then such certificate may state all such additional facts or matters as the signer of such
Opinion of Counsel may request.

(b) In any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified or covered by only
one document, but one such Person may certify or give an opinion with respect to some matters and
one or more other such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents. Where (i) any Person is required to make,
give or execute two or more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, or (ii) two or more Persons are each required to make, give
or execute any such application, request, consent, certificate, statement, opinion or other
instrument, any such applications, requests, consents, certificates, statements, opinions or other
instruments may, but need not, be consolidated and form one instrument.

 

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(c) Whenever, subsequent to the receipt by the Trustee of any Board Resolution, Officer’s
Certificate, Opinion of Counsel or other document or instrument, a clerical, typographical or other
inadvertent or unintentional error or omission shall be discovered therein, a new document or
instrument may be substituted therefor in corrected form with the same force and effect as if
originally filed in the corrected form and, irrespective of the date or dates of the actual
execution and/or delivery thereof, such substitute document or instrument shall be deemed to have
been executed and/or delivered as of the date or dates required with respect to the document or
instrument for which it is substituted. Anything in this Indenture to the contrary
notwithstanding, if any such corrective document or instrument indicates that action has been taken
by or at the request of the Company which could not have been taken had the original document or
instrument not contained such error or omission, the action so taken shall not be invalidated or
otherwise rendered ineffective but shall be and remain in full force and effect, except to the
extent that such action was a result of willful misconduct or bad faith. Without limiting the
generality of the foregoing, any Securities issued under the authority of such defective document
or instrument shall nevertheless be the valid obligations of the Company entitled to the benefits
of this Indenture equally and ratably with all other Outstanding Securities, except as aforesaid.

SECTION 104. Acts of Holders.

(a) Any request, demand, authorization, direction, notice, consent, election, waiver or other
action provided by this Indenture to be made, given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by an agent duly appointed in writing or, alternatively, may be embodied in and evidenced
by the record of Holders voting in favor thereof, either in person or by proxies duly appointed in
writing, at any meeting of Holders duly called and held in accordance with the provisions of
Article Thirteen, or a combination of such instruments and any such record. Except as herein
otherwise expressly provided, such action shall become effective when such instrument or
instruments or record or both are delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments and any such record (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the
Holders signing such instrument or instruments and so voting at any such meeting. Proof of
execution of any such instrument or of a writing appointing any such agent, or of the holding by
any Person of a Security, shall be sufficient for any purpose of this Indenture and (subject to
Section 901) conclusive in favor of the Trustee and the Company, if made in the manner provided in
this Section. The record of any meeting of Holders shall be proved in the manner provided in
Section 1306.

(b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof or may be proved in
any other manner which the Trustee and the Company deem sufficient. Where such execution is by a
signer acting in a capacity other than his individual capacity, such certificate or affidavit shall
also constitute sufficient proof of his authority.

(c) The ownership, aggregate principal amount (except as otherwise contemplated in clause (y)
of the first proviso to the definition of Outstanding) and serial numbers of Securities held by any
Person, and the date of holding the same, shall be proved by the Security Register.

 

9

 

(d) Any request, demand, authorization, direction, notice, consent, election, waiver or other
Act of a Holder shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

(e) Until such time as written instruments shall have been delivered to the Trustee with
respect to the requisite percentage in aggregate principal amount of Securities for the action
contemplated by such instruments, any such instrument executed and delivered by or on behalf of a
Holder may be revoked with respect to any or all of such Securities by written notice by such
Holder or any subsequent Holder, proven in the manner in which such instrument was proven.

(f) Securities of any series, or any Tranche thereof, authenticated and delivered after any
Act of Holders may, and shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any action taken by such Act of Holders. If the Company shall so determine, new
Securities of any series, or any Tranche thereof, so modified as to conform, in the opinion of the
Trustee and the Company, to such action may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series or
Tranche.

(g) The Company may, at its option, by Company Order, fix in advance a record date for the
determination of Holders entitled to give any request, demand, authorization, direction, notice,
consent, waiver or other Act solicited by the Company, but the Company shall have no obligation to
do so; provided, however, that the Company may not fix a record date for the giving or making of
any notice, declaration, request or direction referred to in the next sentence. In addition, the
Trustee may, at its option, fix in advance a record date for the determination of Holders entitled
to join in the giving or making of any Notice of Default, any declaration of acceleration referred
to in Section 802, any request to institute proceedings referred to in Section 807 or any direction
referred to in Section 812. If any such record date is fixed, such request, demand, authorization,
direction, notice, consent, waiver or other Act, or such notice, declaration, request or direction,
may be given before or after such record date, but only the Holders of record at the close of
business on the record date shall be deemed to be Holders for the purposes of determining (i)
whether Holders of the requisite proportion of the Outstanding Securities have authorized or agreed
or consented to such Act (and for that purpose the Outstanding Securities shall be computed as of
the record date) and/or (ii) which Holders may revoke any such Act (notwithstanding subsection (e)
of this Section ); and any such Act, given as aforesaid, shall be effective whether or not the
Holders which authorized or agreed or consented to such Act remain Holders after such record date
and whether or not the Securities held by such Holders remain Outstanding after such record date.

 

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SECTION 105. Notices, Etc. to Trustee or Company.

Except as otherwise provided in this Indenture, any request, demand, authorization, direction,
notice, consent, election, waiver or Act of Holders or other document provided or permitted by this
Indenture to be made upon, given or furnished to, or filed with, the Trustee by any Holder or by
the Company, or the Company by the Trustee or by any Holder, shall be sufficient for every purpose
hereunder (unless otherwise expressly provided herein) if in writing and delivered personally to an
officer or other responsible employee of the addressee, or transmitted by facsimile transmission or
other direct written electronic means to such telephone number or other electronic communications
address set forth for such party below or such other address as the parties hereto shall from time
to time designate, or transmitted by registered or certified mail or reputable overnight courier,
charges prepaid, to the applicable address set forth for such party below or to such other address
as either party hereto may from time to time designate:

If to the Trustee, to:

The Bank of New York Mellon

101 Barclay Street, 4E

New York, New York 10286

Attention: Corporate Trust Administration

Telephone: (212) 815-5857

Telecopy: (732) 667-9474

If to the Company, to:

PPL WEM Holdings plc

Avonbank Feeder Road

Bristol, United Kingdom BS2 0TB

Attention: Secretary

Telephone: +44-11-7933 2265

Telecopy: +44-11-7933-2001

With a copy to:

PPL Corporation

Two North Ninth Street

Allentown, Pennsylvania 18101-1179

Attention: Treasurer

Telephone: (610) 774-5987

Telecopy: (610) 774-5106

Any communication contemplated herein shall be deemed to have been made, given, furnished and
filed if personally delivered, on the date of delivery, if transmitted by facsimile transmission or
other direct written electronic means, on the date of transmission, and if transmitted by
registered mail or certified mail or reputable overnight courier, on the date of receipt.

The Trustee agrees to accept and act upon instructions or directions pursuant to this
Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic
methods; provided, however, that (a) the party providing such electronic instructions or
directions, subsequent to the transmission thereof, shall provide the originally executed
instructions or directions to the Trustee in a timely manner and (b) such originally executed
instructions or directions shall be signed by an authorized representative of the party providing
such instructions or directions. If a party elects to give the Trustee instructions or directions
by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods, as
aforesaid, and the Trustee in its discretion elects to act upon such instructions or directions,
the Trustee’s understanding of such instructions or directions shall be deemed controlling. The
Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from
the Trustee’s reliance upon and compliance with such instructions or directions notwithstanding
such instructions or directions conflict or are inconsistent with a subsequent written instruction
or direction or if the subsequent written instruction or direction is never received. The party
providing instructions or directions by unsecured e-mail, facsimile transmission or other similar
unsecured electronic methods, as aforesaid, agrees to assume all risks arising out of the use of
such electronic methods to submit instructions and directions to the Trustee, including without
limitation the risk of the Trustee acting on unauthorized instructions, and the risk of
interception and misuse by third parties.

 

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SECTION 106. Notice to Holders of Securities; Waiver.

Except as otherwise expressly provided in this Indenture, where this Indenture provides for
notice to Holders of any event, such notice shall be sufficiently given, and shall be deemed given,
to Holders if in writing and mailed, first-class postage prepaid, to each Holder affected by such
event, at the
address of such Holder as it appears in the Security Register, not later than the latest date,
and not earlier than the earliest date, prescribed for the giving of such Notice.

In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice to Holders by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification for every purpose
hereunder. In any case where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders.

Any notice required by this Indenture may be waived in writing by the Person entitled to
receive such notice, either before or after the event otherwise to be specified therein, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity of any action taken
in reliance upon such waiver.

SECTION 107. Conflict with Trust Indenture Act.

If any provision of this Indenture limits, qualifies or conflicts with another provision
hereof which is required or deemed to be included in this Indenture by, or is otherwise governed
by, any provision of the Trust Indenture Act, such other provision shall control; and if any
provision hereof otherwise conflicts with the Trust Indenture Act, the Trust Indenture Act shall
control.

SECTION 108. Effect of Headings and Table of Contents.

The Article and Section headings in this Indenture and the Table of Contents are for
convenience only and shall not affect the construction hereof.

SECTION 109. Successors and Assigns.

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

SECTION 110. Separability Clause.

In case any provision in this Indenture or the Securities shall be held to be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

SECTION 111. Benefits of Indenture.

Nothing in this Indenture or the Securities, express or implied, shall give to any Person,
other than the parties hereto, their successors hereunder and the Holders, any benefit or any legal
or equitable right, remedy or claim under this Indenture.

 

12

 

SECTION 112. Governing Law.

This Indenture and the Securities shall be governed by and construed in accordance with the
law of the State of New York (including, without limitation, Section 5-1401 of the New York General
Obligations Law or any successor to such statute), except to the extent that the Trust Indenture
Act shall be applicable and except to the extent that the law of any other jurisdiction shall
mandatorily govern.

SECTION 113. Legal Holidays.

In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities other than a provision in Securities of any
series, or any Tranche thereof, or in the indenture supplemental hereto, Board Resolution or
Officer’s Certificate which establishes the terms of the Securities of such series or Tranche,
which specifically states that such provision shall apply in lieu of this Section) payment of
interest or principal and premium, if any, need not be made at such Place of Payment on such date,
but may be made on the next succeeding Business Day at such Place of Payment with the same force
and effect as if made on the Interest Payment Date, Redemption Date, or Stated Maturity, and, if
such payment is made or duly provided for on such Business Day, no interest shall accrue on the
amount so payable for the period from and after such Interest Payment Date, Redemption Date or
Stated Maturity, as the case may be, to such Business Day.

SECTION 114. Waiver of Jury Trial.

Each of the Company, the Trustee and the Holders hereby irrevocably waive, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Indenture or the Securities or the transactions contemplated
hereby.

SECTION 115. Force Majeure.

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; 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.

SECTION 116. Submission to Jurisdiction; Waiver of Immunity.

For the benefit of the Holders, the Company hereby (i) irrevocably submits to the
non-exclusive jurisdiction of any New York State court or United States federal court sitting in
the Borough of Manhattan in the City of New York solely for purposes of any legal action or
proceeding arising out of or relating to the Securities or this Indenture and (ii) irrevocably
waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to
the laying of venue of any legal action or proceeding in any New York State court or United States
federal court sitting in the Borough of Manhattan in the City of New York, and any claim that any
such action or proceedings brought in any such court has been brought in an inconvenient forum.
The Company agrees that a final judgment in any such legal action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law.

 

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To the extent that the Company may in any jurisdiction claim for itself or its assets immunity
(to the extent that any immunity may now or hereafter exist) from suit, execution, attachment
(whether in aid of execution, before judgment or otherwise) or other legal process (whether through
service or notice or otherwise), and to the extent that in any such jurisdiction there may be
attributed to itself or its assets such immunity (whether or not claimed), the Company irrevocably
agrees not to claim, and irrevocably waives, such immunity to the full extent permitted by the laws
of such jurisdiction.

SECTION 117. Appointment of Agent for Service of Process.

The Company irrevocably appoints CT Corporation as its authorized agent upon which process may
be served in any legal action or proceeding which may be instituted in any Federal or State court
in the Borough of Manhattan, the City of New York, arising out of or relating to the Securities or
this Indenture, but for that purpose only. Service of process upon such agent at the office of CT
Corporation at 111 Eighth Avenue, New York, NY 10011, and written notice of said service to the
Company by the Person servicing the same addressed as provided by Section 105, shall be deemed in
every respect effective service of process upon the Company in any such legal action or proceeding,
and the Company hereby submits to the nonexclusive jurisdiction of any such court in which any such
legal action or proceeding is so instituted. Such appointment shall be irrevocable so long as the
Holders of Securities or the Trustee shall have any rights pursuant to the terms thereof or of this
Indenture until the appointment of a successor by the Company with the consent of the Trustee and
such successor’s acceptance of such appointment. The Company further agrees to take any and all
action, including the execution and filing of any and all such documents and instruments, as may be
necessary to continue such designation and appointment of such agent or successor.

ARTICLE TWO

SECURITY FORMS

SECTION 201. Forms Generally.

The definitive Securities of each series shall be in substantially the form or forms thereof
established in the indenture supplemental hereto establishing such series or in a Board Resolution
establishing such series, or in an Officer’s Certificate pursuant to such a supplemental indenture
or Board Resolution, in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon as may be required
to comply with the rules of any securities exchange or as may, consistently herewith, be determined
by the officers executing such Securities, as evidenced by their execution thereof. If the form or
forms of Securities of any series are established in an Officer’s Certificate pursuant to a
supplemental indenture, such Officer’s Certificate, if any, shall be delivered to the Trustee at or
prior to the delivery of the Company Order contemplated by Section 303 for the authentication and
delivery of such Securities.

Unless otherwise specified as contemplated by Section 301, the Securities of each series shall
be issuable in registered form without coupons. The definitive Securities shall be produced in
such manner as shall be determined by the officers executing such Securities, as evidenced by their
execution thereof.

 

14

 

SECTION 202. Form of Trustee’s Certificate of Authentication.

The Trustee’s certificate of authentication shall be in substantially the form set forth
below:

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 

ARTICLE THREE

THE SECURITIES

SECTION 301. Amount Unlimited; Issuable in Series.

The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

The Securities may be issued in one or more series. Subject to the last paragraph of this
Section, prior to the authentication and delivery of Securities of any series there shall be
established by specification in a supplemental indenture or an Officer’s Certificate of the Company
(which need not comply with Section 102) pursuant to a supplemental indenture:

(a) the title of the Securities of such series (which shall distinguish the Securities
of such series from Securities of all other series); and, if other than the date of its
authentication, the date of each Security of such series;

(b) any limit upon the aggregate principal amount of the Securities of such series
which may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of such series pursuant to Section 304, 305, 306, 406 or 1206 and
except for any Securities which, pursuant to Section 303, are deemed never to have been
authenticated and delivered hereunder);

(c) the Person or Persons (without specific identification) to whom any interest on
Securities of such series, or any Tranche thereof, shall be payable, if other than the
Person in whose name that Security (or one or more Predecessor Securities) is registered at
the close of business on the Regular Record Date for such interest;

(d) the date or dates on which the principal of the Securities of such series or any
Tranche thereof, is payable or any formulary or other method or other means by which such
date or dates shall be determined, by reference to an index or other fact or event
ascertainable outside of this Indenture or otherwise (without regard to any provisions for
redemption, prepayment, acceleration, purchase or extension); and the right, if any, to
extend the Maturity of the Securities of such series, or any Tranche thereof, and the
duration of any such extension;

 

15

 

(e) the rate or rates at which the Securities of such series, or any Tranche thereof,
shall bear interest, if any (including the rate or rates at which overdue principal shall
bear interest after Maturity if different from the rate or rates at which such Securities
shall bear interest prior to Maturity, and, if applicable, the rate or rates at which
overdue premium or interest shall bear interest, if any), or any formulary or other method
or other means by which such rate or rates shall be determined by reference to an index or
other fact or event ascertainable outside of this Indenture or otherwise; the date or dates
from which such interest shall accrue; the Interest Payment Dates and the Regular Record
Dates, if any, for the interest payable on such Securities on any Interest Payment Date; and
the basis of computation of interest, if other than as provided
in Section 310; and the right, if any, to extend the interest payment periods and the
duration of any such extension;

(f) the place or places at which and/or methods (if other than as provided elsewhere in
this Indenture) by which (i) the principal of and premium, if any, and interest, if any, on
Securities of such series, or any Tranche thereof, shall be payable, (ii) registration of
transfer of Securities of such series, or any Tranche thereof, may be effected, (iii)
exchanges of Securities of such series, or any Tranche thereof, may be effected and (iv)
notices and demands to or upon the Company in respect of the Securities of such series, or
any Tranche thereof, and this Indenture may be served; the Security Registrar and any Paying
Agent or Agents for such series or Tranche; and, if such is the case, that the principal of
such Securities shall be payable without the presentment or surrender thereof;

(g) the period or periods within which, or the date or dates on which, the price or
prices at which and the terms and conditions upon which the Securities of such series, or
any Tranche thereof, may be redeemed, in whole or in part, at the option of the Company and
any restrictions on such redemptions and, for purposes of Section 407, the original issue
date of the Securities of such series;

(h) the obligation or obligations, if any, of the Company to redeem or purchase or
repay the Securities of such series, or any Tranche thereof, pursuant to any sinking fund or
other mandatory redemption provisions or at the option of a Holder thereof and the period or
periods within which or the date or dates on which, the price or prices at which and the
terms and conditions upon which such Securities shall be redeemed or purchased or repaid, in
whole or in part, pursuant to such obligation and applicable exceptions to the requirements
of Section 404 in the case of mandatory redemption or redemption or repayment at the option
of the Holder;

(i) the denominations in which Securities of such series, or any Tranche thereof, shall
be issuable if other than denominations of Two Thousand Dollars ($2,000) and integral
multiples of One Thousand Dollars ($1,000) in excess thereof;

(j) if the principal of or premium, if any, or interest, if any, on the Securities of
such series, or any Tranche thereof, are to be payable, at the election of the Company or a
Holder thereof, in a coin or currency other than that in which the Securities are stated to
be payable, the period or periods within which, and the terms and conditions upon which,
such election may be made and the manner in which the amount of such coin or currency
payable is to be determined;

(k) the currency or currencies, including composite currencies, in which payment of the
principal of and premium, if any, and interest, if any, on the Securities of such series, or
any Tranche thereof, shall be payable (if other than Dollars) and the manner in which the
equivalent of the principal amount thereof in Dollars is to be determined for any purpose,
including for the purpose of determining the principal amount deemed to be Outstanding at
any time;

 

16

 

(l) if the principal of or premium, if any, or interest, if any, on the Securities of
such series, or any Tranche thereof, are to be payable, or are to be payable at the election
of the Company or a Holder thereof, in securities or other property, the type and amount of
such securities or other property, or the formulary or other method or other means by which
such amount shall be determined, and the period or periods within which, and the terms and
conditions upon which, any such election may be made;

(m) if the amount payable in respect of principal of or premium, if any, or interest,
if any, on the Securities of such series, or any Tranche thereof, may be determined with
reference to an index or other fact or event ascertainable outside this Indenture, the
manner in which such amounts shall be determined to the extent not established pursuant to
clause (e), (g) or (h) of this paragraph;

(n) if other than the entire principal amount thereof, the portion of the principal
amount of Securities of such series, or any Tranche thereof, which shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 802;

(o) any Events of Default, in addition to those specified in Section 801, or any
exceptions to those specified in Section 801, with respect to the Securities of such series,
and any covenants of the Company for the benefit of the Holders of the Securities of such
series, or any Tranche thereof, in addition to those set forth in Article Six, or any
exceptions to those set forth in Article Six;

(p) the terms, if any, pursuant to which the Securities of such series, or any Tranche
thereof, may be converted into or exchanged for shares of capital stock or other securities
of the Company or any other Person;

(q) the obligations or instruments, if any, which shall be considered to be Eligible
Obligations in respect of the Securities of such series, or any Tranche thereof, denominated
in a currency other than Dollars or in a composite currency, and any provisions for
satisfaction and discharge of Securities of any series, in addition to those set forth in
Section 701, or any exceptions to those set forth in Section 701;

(r) if the Securities of such series, or any Tranche thereof, are to be issued in
global form, (i) any limitations on the rights of the Holder or Holders of such Securities
to transfer or exchange the same or to obtain the registration of transfer thereof, (ii) any
limitations on the rights of the Holder or Holders thereof to obtain certificates therefor
in definitive form in lieu of global form and (iii) any other matters incidental to such
Securities;

(s) to the extent not established pursuant to clause (r) of this paragraph, any
limitations on the rights of the Holders of the Securities of such Series, or any Tranche
thereof, to transfer or exchange such Securities or to obtain the registration of transfer
thereof; and if a service charge will be made for the registration of transfer or exchange
of Securities of such series, or any Tranche thereof, the amount or terms thereof;

(t) any exceptions to Section 113, or variation in the definition of Business Day, with
respect to the Securities of such series, or any Tranche thereof; and

(u) any other terms of the Securities of such series, or any Tranche thereof, that the
Company may elect to specify.

 

17

 

With respect to Securities of a series subject to a Periodic Offering, the indenture
supplemental hereto or Officer’s Certificate which establishes such series may provide general
terms or parameters for Securities of such series and provide that the specific terms of Securities
of such series, or any Tranche thereof, shall be determined by the Company or its agents in
accordance with procedures specified in a Company Order as contemplated in Section 303(b).

Unless otherwise provided with respect to a series of Securities as contemplated in clause (b)
of Section 301, the aggregate principal amount of a series of Securities may be increased and
additional Securities of such series may be issued up to the maximum aggregate principal amount, if
any, authorized with respect to such series as increased.

SECTION 302. Denominations.

Unless otherwise provided as contemplated by Section 301 with respect to any series of
Securities, or any Tranche thereof, the Securities of each series shall be issuable in
denominations of Two Thousand Dollars ($2,000) and integral multiples of One Thousand Dollars
($1,000) in excess thereof.

SECTION 303. Execution and Dating; Authentication and Delivery.

(a) Unless otherwise provided as contemplated by Section 301 with respect to any series of
Securities or any Tranche thereof, the Securities shall be executed on behalf of the Company by an
Authorized Officer of the Company, and may have the corporate seal of the Company affixed thereto
or reproduced thereon attested by its Secretary, one of its Assistant Secretaries or any other
Authorized Officer. The signature of any or all of these officers on the Securities may be manual
or facsimile.

A Security bearing the manual or facsimile signature of an individual who was at the time of
execution an Authorized Officer of the Company shall bind the Company, notwithstanding that any
such individual has ceased to be an Authorized Officer prior to the authentication and delivery of
the Security or did not hold such office at the date of such Security.

Except as otherwise specified as contemplated by Section 301 with respect to any series of
Securities, or any Tranche thereof, each Security shall be dated the date of its authentication.

(b) The Trustee shall authenticate and deliver Securities of a series, for original issue, at
one time or from time to time in accordance with the Company Order referred to below, upon receipt
by the Trustee of:

(i) the instrument or instruments establishing the form or forms and terms of the
Securities of such series, as provided in Sections 201 and 301;

(ii) a Company Order requesting the authentication and delivery of such Securities and,
to the extent that the terms of Securities subject to a Periodic Offering shall not have
been established in an indenture supplemental hereto or an Officer’s Certificate, as
contemplated by Sections 201 and 301, specifying procedures, acceptable to the Trustee, by
which such terms are to be established (which procedures may provide, to the extent
acceptable to the Trustee, for authentication and delivery pursuant to oral or electronic
instructions from the Company or any agent or agents thereof, which oral instructions are to
be promptly confirmed electronically or in writing), in either case in accordance with the
instrument or instruments establishing the terms of the Securities of such series delivered
pursuant to clause (i) above;

 

18

 

(iii) Securities of such series, executed on behalf of the Company by an Authorized
Officer of the Company;

(iv) an Officer’s Certificate (A) which shall comply with the requirements of Section
102 of this Indenture and (B) which states that no Event of Default under this Indenture has
occurred or is occurring;

(v) an Opinion of Counsel which shall comply with the requirements of Section 102 of
this Indenture and shall be substantially to the following effect:

(A) the forms of such Securities have been duly authorized by the Company and
have been established in conformity with the provisions of this Indenture;

(B) the terms of such Securities have been duly authorized by the Company and
have been established in conformity with the provisions of this Indenture; and

(C) when such Securities shall have been authenticated and delivered by the
Trustee and issued and delivered by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, such Securities will have been duly
issued under this Indenture, will constitute valid and legally binding obligations
of the Company enforceable in accordance with their terms, subject to laws relating
to or affecting generally the enforcement of creditors’ rights, including, without
limitation, bankruptcy and insolvency laws, and to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity
as at law), and will be entitled to the benefits provided by this Indenture;

provided, however, that, with respect to Securities of a series subject to a Periodic Offering, the
Trustee shall be entitled to receive such Opinion of Counsel only once at or prior to the time of
the first authentication and delivery of Securities of such series, and that in lieu of the
opinions described in clauses (B) and (C) above such Opinion of Counsel may, alternatively, be
substantially to the following effect:

(x) when the terms of such Securities shall have been established pursuant to such
procedures as may be specified from time to time by a Company Order or Orders, all as
contemplated by and in accordance with the instrument or instruments delivered pursuant to
clause (b)(i) above, such terms will have been duly authorized by the Company and will have
been established in conformity with the provisions of this Indenture; and

(y) when such Securities shall have been (1) executed by the Company, (2) authenticated
and delivered by the Trustee in accordance with this Indenture, (3) issued and delivered by
the Company and (4) paid for, all as contemplated by and in accordance with the procedures
specified in the aforesaid Company Order or Orders, such Securities will have been duly
issued under this Indenture and will constitute valid and legally binding obligations of the
Company enforceable in accordance with their terms, subject to laws relating to or affecting
generally the enforcement of creditors’ rights, including, without limitation, bankruptcy
and insolvency laws and to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law), and will be entitled to
the benefits provided by this Indenture.

 

19

 

With respect to Securities of a series subject to a Periodic Offering, the Trustee may
conclusively rely, as to the authorization by the Company of any of such Securities, the forms and
terms thereof and the legality, validity, binding effect and enforceability thereof, upon the
Opinion of Counsel and other documents delivered pursuant to Sections 201 and 301 and this Section,
as applicable, at or prior to the time of the first authentication of Securities of such series,
unless and until such opinion or other documents have been superseded or revoked or expire by their
terms. In connection with the authentication and delivery of Securities of a series, pursuant to a
Periodic Offering, the Trustee shall be entitled to assume that the Company’s instructions to
authenticate and deliver such Securities do not
violate any applicable law or any applicable rule, regulation or order of any governmental
agency or commission having jurisdiction over the Company.

Anything herein to the contrary notwithstanding, the Trustee shall not be required to
authenticate the Securities of any series or Tranche if the issuance of such Securities pursuant to
this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and
this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

Except as otherwise specified as contemplated by Section 301 with respect to any series of
Securities, or any Tranche thereof, no Security shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein executed by the Trustee
or its agent by manual signature of an authorized signatory thereof, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this Indenture.
Notwithstanding the foregoing, if any Security shall have been authenticated and delivered
hereunder to the Company, or any Person acting on its behalf, but shall never have been issued and
sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 309 together with a written statement (which need not comply with Section 102
and need not be accompanied by an Opinion of Counsel) stating that such Security has never been
issued and sold by the Company, for all purposes of this Indenture such Security shall be deemed
never to have been authenticated and delivered hereunder and shall never be entitled to the
benefits hereof.

SECTION 304. Temporary Securities.

Pending the preparation of definitive Securities of any series, or any Tranche thereof, the
Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Securities in lieu of which
they are issued, with such appropriate insertions, omissions, substitutions and other variations as
any officer executing such Securities may determine, as evidenced by such officer’s execution of
such Securities; provided, however, that temporary Securities need not recite specific redemption,
sinking fund, conversion or exchange provisions.

If temporary Securities of any series or Tranche are issued, the Company shall cause
definitive Securities of such series or Tranche to be prepared without unreasonable delay. After
the preparation of definitive Securities of such series or Tranche, the temporary Securities of
such series or Tranche shall be exchangeable for definitive Securities of such series or Tranche,
upon surrender of the temporary Securities of such series or Tranche at the office or agency of the
Company maintained pursuant to Section 602 in a Place of Payment for such series or Tranche,
without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series or Tranche, the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor definitive Securities of the same series or Tranche, of authorized
denominations and of like tenor and aggregate principal amount.

Until exchanged in full as hereinabove provided, temporary Securities shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of the same series and
Tranche and of like tenor authenticated and delivered hereunder.

 

20

 

SECTION 305. Registration, Registration of Transfer and Exchange.

The Company shall cause to be kept in one of the offices or agencies designated pursuant to
Section 602, with respect to the Securities of each series or any Tranche thereof, a register (the
“Security Register”) in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Securities of such series or Tranche and the
registration of transfer thereof. The Company shall designate one Person to maintain the Security
Register for the Securities of each series, and such Person is referred to herein, with respect to
such series, as the “Security Registrar.” Anything herein to the contrary notwithstanding, the
Company may designate one of its offices or an office of any Affiliate as the office in which the
Security Register with respect to the Securities of one or more series, or any Tranche or Tranches
thereof, shall be maintained, and the Company may designate itself or any Affiliate as the Security
Registrar with respect to one or more of such series. The Security Register shall be open for
inspection by the Trustee and the Company at all reasonable times. Unless otherwise specified in
or pursuant to this Indenture or the Securities, the Trustee shall be the initial Security
Registrar for each series of Securities.

Except as otherwise specified as contemplated by Section 301 with respect to the Securities of
any series, or any Tranche thereof, upon surrender for registration of transfer of any Security of
such series or Tranche at the office or agency of the Company maintained pursuant to Section 602 in
a Place of Payment for such series or Tranche, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Securities of the same series and Tranche, of authorized denominations and of like tenor and
aggregate principal amount.

Except as otherwise specified as contemplated by Section 301 with respect to the Securities of
any series, or any Tranche thereof, any Security of such series or Tranche may be exchanged at the
option of the Holder for one or more new Securities of the same series and Tranche, of authorized
denominations and of like tenor and aggregate principal amount, upon surrender of the Securities to
be exchanged at any such office or agency. Whenever any Securities are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the
Securities, which the Holder making the exchange is entitled to receive.

All Securities delivered upon any registration of transfer or exchange of Securities shall be
valid obligations of the Company, evidencing the same obligation, and entitled to the same benefits
under this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed or shall be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Trustee, duly executed by the
Holder thereof or his attorney duly authorized in writing.

Unless otherwise specified as contemplated by Section 301, with respect to Securities of any
series, or any Tranche thereof, no service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient to cover any Taxes
or other governmental charge (including any stamp, registration or documentary Taxes) that may be
imposed in connection with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 406 or 1206 not involving any transfer.

The Company shall not be required to execute or to provide for the registration of transfer of
or the exchange of (a) Securities of any series, or any Tranche thereof, during a period of 15 days
immediately preceding the date notice is to be given identifying the serial numbers of the
Securities of
such series or Tranche called for redemption or (b) any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed in part.

 

21

 

SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.

If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and
Tranche, of like tenor and principal amount and bearing a number not contemporaneously outstanding.

If there shall be delivered to the Company and the Trustee (a) evidence to their satisfaction
of the ownership of and the destruction, loss or theft of any Security and (b) such security or
indemnity as may be reasonably required by them to save each of them and any agent of either of
them harmless, then, in the absence of notice to the Company or the Trustee that such Security has
been acquired by a bona fide purchaser, the Company shall execute and the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of
the same series and Tranche, of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

Notwithstanding the foregoing, in case any such mutilated, destroyed, lost or stolen Security
has become or is about to become due and payable, the Company in its discretion may, instead of
issuing a new Security, pay such Security.

Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of the Trustee) in
connection therewith.

Every new Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by
anyone other than the Holder of such new security, and any such new Security shall be entitled to
all the benefits of this Indenture equally and proportionately with any and all other Securities of
such series duly issued hereunder.

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.

SECTION 307. Payment of Interest; Interest Rights Preserved.

Unless otherwise provided as contemplated by Section 301 with respect to the Securities of any
series, or any Tranche thereof, interest on any Security which is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that
Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest (whether or not a Business Day).

 

22

 

Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder on the related Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (a) or (b) below (without prejudice to the amount of Defaulted Interest
payable under Section 601):

(a) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a date (a “Special Record Date”) for the payment of
such Defaulted Interest, which shall be fixed in the following manner. The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each Security of such series to such Persons and the date of the proposed payment, and at
the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the proposed payment.
The Trustee shall promptly notify the Company of such Special Record Date and, in the name
and at the expense of the Company, shall promptly cause notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor to be mailed, first-class
postage prepaid, to each Holder of Securities of such series at the address of such Holder
as it appears in the Security Register, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date.

(b) The Company may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be required by
such exchange, if, after notice given by the Company to the Trustee of the proposed payment
pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

Subject to the foregoing provisions of this Section and Section 305, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security.

SECTION 308. Persons Deemed Owners.

Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered as the absolute owner of such Security for the purpose of receiving payment of principal
of and premium, if any, and (subject to Sections 305 and 307) interest, if any, on such Security
and for all other purposes whatsoever, whether or not such Security be overdue, and none of the
Company, the Trustee or any agent of the Company, or the Trustee shall be affected by notice to the
contrary.

 

23

 

SECTION 309. Cancellation.

All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and, if not theretofore canceled, shall be promptly canceled
by the Trustee. The Company may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have acquired in any manner
whatsoever or which the Company shall not have issued and sold, and all Securities so delivered
shall be promptly
canceled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for
any Securities canceled as provided in this Section, except as expressly permitted by this
Indenture. All canceled Securities held by the Trustee shall be disposed of in accordance with the
Trustee’s customary procedures, and the Trustee shall promptly deliver a certificate of disposition
to the Company unless, by a Company Order, the Company shall direct that canceled Securities be
returned to it.

SECTION 310. Computation of Interest.

Except as otherwise specified as contemplated by Section 301 for Securities of any series, or
Tranche thereof, interest on the Securities of each series shall be computed on the basis of a
three hundred sixty (360) day year consisting of twelve (12) thirty (30) day months, and with
respect to any period less than a full calendar month, on the basis of the actual number of days
elapsed during such period.

SECTION 311. Payment to Be in Proper Currency.

In the case of any Security denominated in any currency other than Dollars or in a composite
currency (the “Required Currency”), except as otherwise specified with respect to such Security as
contemplated by Section 301, the obligation of the Company to make any payment of the principal
thereof, or the premium or interest thereon, shall not be discharged or satisfied by any tender by
the Company, or recovery by the Trustee, in any currency other than the Required Currency, except
to the extent that such tender or recovery shall result in the Trustee timely holding the full
amount of the Required Currency then due and payable. If any such tender or recovery is in a
currency other than the Required Currency, the Trustee may take such actions as it considers
appropriate to exchange such currency for the Required Currency. The costs and risks of any such
exchange, including, without limitation, the risks of delay and exchange rate fluctuation, shall be
borne by the Company; the Company shall remain fully liable for any shortfall or delinquency in the
full amount of Required Currency then due and payable, and in no circumstances shall the Trustee be
liable therefor except in the case of its negligence or willful misconduct. The Company hereby
waives any defense of payment based upon any such tender or recovery which is not in the Required
Currency, or which, when exchanged for the Required Currency by the Trustee, is less than the full
amount of Required Currency then due and payable.

SECTION 312. Extension of Interest Payment

The Company shall have the right at any time, to extend interest payment periods on all the
Securities of any series hereunder, if so specified as contemplated by Section 301 with respect to
such Securities and upon such terms as may be specified as contemplated by Section 301 with respect
to such Securities.

SECTION 313. CUSIP Numbers.

The Company in issuing the Securities may use CUSIP numbers and/or other similar third-party
identifiers (if then generally in use) and, if so, the Trustee or the Security Registrar may use
CUSIP numbers or such other identifiers in notices of redemption as a convenience to Holders;
provided, however, that any such notice may state that no representation is made as to the
correctness of such numbers or other identifiers either as printed on the Securities or as
contained in any notice of redemption and that reliance may be placed only on the identification
numbers assigned by the Company and printed on the Securities, in which case neither the Company
nor, as the case may be, the Trustee or the Security Registrar, or any agent of any of them, shall
have any liability in respect of any CUSIP number or other third-party identifier, and any such
redemption shall not be affected by any defect in or omission of such
numbers. The Company shall as promptly as practicable notify the Trustee in writing of any
change in CUSIP numbers or other identifiers.

 

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ARTICLE FOUR

REDEMPTION OF SECURITIES

SECTION 401. Applicability of Article.

Securities of any series, or any Tranche thereof, which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as
contemplated by Section 301 for Securities of such series or Tranche) in accordance with this
Article.

SECTION 402. Election to Redeem; Notice to Trustee.

The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or an Officer’s Certificate. The Company shall, at least 45 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee in writing of such Redemption Date and of the series, Tranche and aggregate principal
amount of such Securities to be redeemed. In the case of any redemption of Securities (a) prior to
the expiration of any restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture or (b) pursuant to an election of the Company which is subject to a
condition specified in the terms of such Securities, the Company shall furnish the Trustee with an
Officer’s Certificate evidencing compliance with such restriction or condition.

SECTION 403. Selection of Securities to Be Redeemed.

If less than all the Securities of any series, or any Tranche thereof, are to be redeemed, the
particular Securities to be redeemed shall be selected by the Trustee from the Outstanding
Securities of such series or Tranche not previously called for redemption, by such method as shall
be provided for such particular series or Tranche, or in the absence of any such provision, by such
method of random selection as the Trustee shall deem fair and appropriate and which may, in any
case, provide for the selection for redemption of portions (equal to any authorized denomination
for Securities of such series or Tranche) of the principal amount of Securities of such series or
Tranche of a denomination larger than the minimum authorized denomination for Securities of such
series or Tranche; provided, however, that if, as indicated in an Officer’s Certificate, the
Company shall have offered to purchase all or any principal amount of the Securities then
Outstanding of any series, or any Tranche thereof, and less than all of such Securities as to which
such offer was made shall have been tendered to the Company for such purchase, the Trustee, if so
directed by Company Order, shall select for redemption all or any principal amount of such
Securities which have not been so tendered.

The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected to be redeemed in part, the principal amount
thereof to be redeemed.

For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

 

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SECTION 404. Notice of Redemption.

Notice of redemption shall be given in the manner provided in Section 106 to the Holders of
Securities to be redeemed not less than 30 nor more than 60 days prior to the Redemption Date.

All notices of redemption shall state:

(a) the Redemption Date,

(b) the Redemption Price, or, if not then ascertainable, the manner of calculation
thereof,

(c) if less than all the Securities of any series or Tranche are to be redeemed, the
identification of the particular Securities to be redeemed and the portion of the principal
amount of any Security to be redeemed in part,

(d) that on the Redemption Date the Redemption Price, together with accrued interest,
if any, to the Redemption Date, will become due and payable upon each such Security to be
redeemed and, if applicable, that interest thereon will cease to accrue on and after said
date,

(e) the place or places where such Securities are to be surrendered for payment of the
Redemption Price and accrued interest, if any, unless it shall have been specified as
contemplated by Section 301 with respect to such Securities that such surrender shall not be
required,

(f) that the redemption is for a sinking or other fund, if such is the case, and

(g) such other matters as the Company shall deem desirable or appropriate.

Unless otherwise specified with respect to any Securities in accordance with Section 301, with
respect to any notice of redemption of Securities at the election of the Company, unless, upon the
giving of such notice, such Securities shall be deemed to have been paid in accordance with Section
701, such notice may state that such redemption shall be conditional upon the receipt by the Paying
Agent or Agents for such Securities, on or prior to the date fixed for such redemption, of money
sufficient to pay the principal of and premium, if any, and interest, if any, on such Securities
and that if such money shall not have been so received such notice shall be of no force or effect
and the Company shall not be required to redeem such Securities. In the event that such notice of
redemption contains such a condition and such money is not so received, the redemption shall not be
made and within a reasonable time thereafter notice shall be given, in the manner in which the
notice of redemption was given, that such money was not so received and such redemption was not
required to be made.

Notice of redemption of Securities to be redeemed at the election of the Company, and any
notice of non-satisfaction of a condition for redemption as aforesaid, shall be given by the
Company or, on Company Request, by the Trustee in the name and at the expense of the Company;
provided, however, that, in the case of a notice of redemption, the Company shall have delivered to
the Trustee, at least 45 days (or such shorter period as the Trustee may allow) prior to the
Redemption Date, a Company Order requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in this Section 404.

 

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SECTION 405. Securities Payable on Redemption Date.

Notice of redemption having been given as aforesaid, and the conditions, if any, set forth in
such notice having been satisfied, the Securities or portions thereof so to be redeemed shall, on
the Redemption Date, become due and payable at the Redemption Price therein specified, and from and
after such date (unless, in the case of an unconditional notice of redemption, the Company shall
default in the payment of the Redemption Price and accrued interest, if any) such Securities or
portions thereof, if interest-bearing, shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with such notice, such Security or portion thereof shall be
paid by the Company at the Redemption Price, together with accrued interest, if any, to the
Redemption Date; provided, however, that no such surrender shall be a condition to such payment if
so specified as contemplated by Section 301 with respect to such Security; and provided, further,
that except as otherwise specified as contemplated by Section 301 with respect to such Security,
any installment of interest on any Security the Stated Maturity of which installment is on or prior
to the Redemption Date shall be payable to the Holder of such Security, or one or more Predecessor
Securities, registered as such at the close of business on the related Regular Record Date
according to the terms of such Security and subject to the provisions of Sections 305 and 307.

SECTION 406. Securities Redeemed in Part.

Upon the surrender of any Security which is to be redeemed only in part at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security, without service charge, a
new Security or Securities of the same series and Tranche, of any authorized denomination requested
by such Holder and of like tenor and in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

SECTION 407. Optional Redemption Due to Changes in Tax Treatment.

Notwithstanding any other provision of this Article, the Company may redeem the Securities of
any series, at its option, at any time as a whole but not in part, at a redemption price equal to
100% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the
Redemption Date and Additional Amounts, if any, in the event the Company has become or would become
obligated to pay, on the next date on which any amount would be payable with respect to the
Securities of such series, any Additional Amounts as a result of:

(a) a change in or an amendment to the laws (including any regulations promulgated
thereunder) of a Relevant Taxing Jurisdiction (or any political subdivision or taxing
authority thereof or therein) affecting taxation; or

(b) any change in or amendment to any official position of a taxing authority of a
Relevant Taxing Jurisdiction regarding the application or interpretation of such laws or
regulations (including a holding by a court of competent jurisdiction),

which change or amendment is announced or becomes effective on or after the original issue date of
the Securities of such series (or, in the case of a successor to the Company, on or after the date
the successor assumed all of the Company’s obligations under this Indenture, unless such change or
amendment was announced prior to such date) and the Company cannot avoid such obligation by taking
reasonable measures available to it (including the removal or appointment of one or more additional
Paying Agents).

 

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Notwithstanding the foregoing, no notice of the foregoing redemption will be given (i) earlier than
90 days prior to the earliest date on which the Company would be obliged to make such payment of
Additional Amounts and (ii) unless at the time such notice is given, such obligation to pay such
Additional Amounts remains in effect. Before the Company gives a notice of the foregoing
redemption of the Securities of such series pursuant to Section 404, the Company shall deliver to
the Trustee an Officer’s Certificate to the effect that it cannot avoid its obligation to pay
Additional Amounts by taking reasonable measures available to it (including the removal or
appointment of one or more additional Paying Agents) and an opinion of independent legal counsel of
recognized standing stating that the Company would be obligated to pay Additional Amounts as a
result of a change in, or amendment to, the laws or regulations of a Relevant Taxing Jurisdiction
(or any political subdivision or taxing authority thereof or therein) affecting taxation or the
application or interpretation of such laws or regulations.

ARTICLE FIVE

SINKING FUNDS

SECTION 501. Applicability of Article.

The provisions of this Article shall be applicable to any sinking fund for the retirement of
the Securities of any series, or any Tranche thereof, except as otherwise specified as contemplated
by Section 301 for Securities of such series or Tranche.

The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series, or any Tranche thereof, is herein referred to as a “mandatory sinking fund payment”, and
any payment in excess of such minimum amount provided for by the terms of Securities of any series,
or any Tranche thereof, is herein referred to as an “optional sinking fund payment”. If provided
for by the terms of Securities of any series, or any Tranche thereof, the cash amount of any
sinking fund payment may be subject to reduction as provided in Section 502. Each sinking fund
payment shall be applied to the redemption of Securities of the series or Tranche in respect of
which it was made as provided for by the terms of such Securities.

SECTION 502. Satisfaction of Sinking Fund Payments with Securities.

The Company (a) may deliver to the Trustee Outstanding Securities (other than any previously
called for redemption) of a series or Tranche in respect of which a mandatory sinking fund payment
is to be made and (b) may apply as a credit Securities of such series or Tranche which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of such mandatory sinking fund payment;
provided, however, that no Securities shall be applied in satisfaction of a mandatory sinking fund
payment if such Securities shall have been previously so applied. Securities so applied shall be
received and credited for such purpose by the Trustee at the Redemption Price specified in such
Securities for redemption through operation of the sinking fund and the amount of such mandatory
sinking fund payment shall be reduced accordingly.

 

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SECTION 503. Redemption of Securities for Sinking Fund.

Not less than 45 days prior to each sinking fund payment date for the Securities of any
series, or any Tranche thereof, the Company shall deliver to the Trustee an Officer’s Certificate
specifying:

(a) the amount of the next succeeding mandatory sinking fund payment for such series or
Tranche;

(b) the amount, if any, of the optional sinking fund payment to be made together with
such mandatory sinking fund payment;

(c) the aggregate sinking fund payment;

(d) the portion, if any, of such aggregate sinking fund payment which is to be
satisfied by the payment of cash;

(e) the portion, if any, of such aggregate sinking fund payment which is to be
satisfied by delivering and crediting Securities of such series or Tranche pursuant to
Section 502 and stating the basis for such credit and that such Securities have not
previously been so credited, and the Company shall also deliver to the Trustee any
Securities to be so delivered. If the Company shall not deliver such Officer’s Certificate,
the next succeeding sinking fund payment for such series or Tranche shall be made entirely
in cash in the amount of the mandatory sinking fund payment. Not less than 30 days before
each such sinking fund payment date the Trustee shall select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 403 and cause notice
of the redemption thereof to be given in the name of and at the expense of the Company in
the manner provided in Section 404. Such notice having been duly given, the redemption of
such Securities shall be made upon the terms and in the manner stated in Sections 405 and
406.

ARTICLE SIX

COVENANTS

SECTION 601. Payment of Principal, Premium and Interest.

The Company shall pay the principal of and premium, if any, and interest, if any, on the
Securities of each series in accordance with the terms of such Securities and this Indenture.

SECTION 602. Maintenance of Office or Agency.

The Company shall maintain in each Place of Payment for the Securities of each series, or any
Tranche thereof, an office or agency where payment of such Securities shall be made and/or where
such Securities may be surrendered for payment, where registration of transfer or exchange of such
Securities may be effected and where notices and demands to or upon the Company in respect of such
Securities and this Indenture may be served. The Company shall give prompt written notice to the
Trustee of the location, and any change in the location, of each such office or agency, and the
Company shall give prompt notice thereof to the Holders in the manner specified in Section 106. If
at any time the Company shall fail to maintain any such required office or agency in respect of the
Securities of any series, or any Tranche thereof, or shall fail to furnish the Trustee with the
address thereof, payment of such Securities may be made, registration of transfer or exchange
thereof may be effected and notices and
demands in respect of such Securities and this Indenture may be served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent for all such
purposes in any such event.

 

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The Company may also from time to time designate one or more other offices or agencies with
respect to the Securities of one or more series, or any Tranche thereof, for any or all of the
foregoing purposes and may from time to time rescind such designations; provided, however, that,
unless otherwise specified as contemplated by Section 301 with respect to the Securities of such
series or Tranche, no such designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency for such purposes in each Place of Payment for such
Securities in accordance with the requirements set forth above. The Company shall give prompt
written notice to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency, and the Company shall give prompt notice thereof to
the Holders in the manner specified in Section 106. The Company shall maintain a Paying Agent in a
European Union Member State or other jurisdiction, that will not be obliged to withhold or deduct
tax pursuant to European Council Directive 2003/48/EC or any other directive implementing the
conclusions of the ECOFIN Council meeting of November 26-27, 2000 or any European Union Directive
on the taxation of savings income or any law implementing or complying with or introduced in order
to conform to such directive.

Anything herein to the contrary notwithstanding, any office or agency required by this Section
may be maintained at an office of the Company or any Affiliate of the Company, in which event the
Company or such Affiliate, as the case may be, shall perform all functions to be performed at such
office or agency.

SECTION 603. Money for Securities Payments to Be Held in Trust.

If the Company shall at any time act as its own Paying Agent with respect to the Securities of
any series, or any Tranche thereof, it shall, on or before each due date of the principal of and
premium, if any, or interest, if any, on any of such Securities, segregate and hold in trust for
the benefit of the Persons entitled thereto a sum sufficient to pay the principal and premium or
interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and shall promptly notify the Trustee of its action or failure so to act.

Whenever the Company shall have one or more Paying Agents for the Securities of any series, or
any Tranche thereof, it shall, on or before each due date of the principal of and premium, if any,
or interest, if any, on such Securities, deposit with such Paying Agents sums sufficient (without
duplication) to pay the principal and premium or interest so becoming due, such sums to be held in
trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless
such Paying Agent is the Trustee) the Company shall promptly notify the Trustee of its action or
failure so to act.

The Company shall cause each Paying Agent for the Securities of any series, or any Tranche
thereof, other than the Company or the Trustee, to execute and deliver to the Trustee an instrument
in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section,
that such Paying Agent shall:

(a) hold all sums held by it for the payment of the principal of and premium, if any,
or interest, if any, on such Securities in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of as herein
provided;

 

30

 

(b) give the Trustee notice of any default by the Company (or any other obligor upon
such Securities) in the making of any payment of principal of and premium, if any, or
interest, if any, on such Securities; and

(c) at any time during the continuance of any such default, upon the written request of
the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

The Company may at any time pay, or by Company Order direct any Paying Agent to pay, to the
Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the
Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying
Agent and, if so stated in a Company Order delivered to the Trustee, in accordance with the
provisions of Article Seven; and, upon such payment by any Paying Agent to the Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of and premium, if any, or interest, if any, on any Security
and remaining unclaimed for two years after such principal and premium, if any, or interest has
become due and payable shall be paid to the Company on Company Request, or, if then held by the
Company, shall be discharged from such trust; and, upon such payment or discharge, the Holder of
such Security shall, as an unsecured general creditor and not as the Holder of an Outstanding
Security, look only to the Company for payment of the amount so due and payable and remaining
unpaid, and all liability of the Trustee or such Paying Agent with respect to such trust money, and
all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such payment to the Company, may at
the expense of the Company, either (a) cause to be mailed, on one occasion only, notice to such
Holder that such money remains unclaimed and that, after a date specified therein, which shall not
be less than 30 days from the date of such mailing, any unclaimed balance of such money then
remaining will be paid to the Company or (b) cause to be published once, in a newspaper published
in the English language, customarily published on each Business Day and of general circulation in
the Borough of Manhattan, The City of New York, notice that such money remains unclaimed and that
after a date specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be paid to the Company.

SECTION 604. Additional Amounts

(a) All payments made by or on behalf of the Company under or with respect to the Securities
of each series shall be made free and clear of and without withholding or deduction for or on
account of any present or future tax, duty, levy, impost, assessment or other governmental charge
(including penalties, interest and other liabilities related thereto) (hereinafter referred to as
“Taxes”) imposed or levied by or on behalf of the government of the United Kingdom or any political
subdivision or any authority or agency therein or thereof having power to tax, or any other
jurisdiction in which the Company is organized or is otherwise resident for tax purposes or any
jurisdiction from or through which payment is made (each, a “Relevant Taxing Jurisdiction”), unless
Taxes are required by law or by the interpretation or administration thereof to be withheld or
deducted.

 

31

 

(b) If the Company is so required to withhold or deduct any amount for or on account of Taxes
imposed by a Relevant Taxing Jurisdiction (except for Taxes imposed by the United States or any
political subdivision or any authority thereof or therein having power to tax) from any payment
made under or with respect to the Securities, the Company will be required to pay such additional
amounts (“Additional Amounts”) as may be necessary so that the net amount received by a Holder of
Securities (including Additional Amounts) after such withholding or deduction will not be less
than the amount such Holder of Securities would have received if such Taxes (including Taxes
withheld on any Additional Amounts) had not been withheld or deducted; provided, however, that the
foregoing obligation to pay Additional Amounts does not apply to (1) any Taxes that would not have
been so imposed but for the existence of any present or former connection between the relevant
Holder or beneficial owner of Securities (or between a fiduciary, settlor, beneficiary, member or
shareholder of, or possessor of power over, the relevant Holder or beneficial owner of Securities,
if the relevant Holder or beneficial owner of Securities is an estate, nominee, trust, limited
liability company, partnership or corporation) and the Relevant Taxing Jurisdiction including, for
greater certainty and without limitation, being or having been a citizen, resident or national
thereof, or being or having been present or engaged in a trade or business therein or maintaining a
permanent establishment or other physical presence in or otherwise having some connection with the
Relevant Taxing Jurisdiction (other than a connection from the mere acquisition, ownership or
holding of such Security or a beneficial interest therein or the receipt of any payment in respect
thereof); or (2) any estate, inheritance, gift, sales, excise, transfer, personal property tax or
similar tax, assessment or governmental charge; nor will Additional Amounts be paid (a) if the
payment could have been made without such deduction or withholding if the Security had been
presented for payment (where presentation is required) within 30 days after the date on which such
payment or such Security became due and payable or the date on which payment thereof is duly
provided for, whichever is later (except to the extent that the Holder or beneficial owner would
have been entitled to Additional Amounts had the Security been presented on the last day of such
30-day period); (b) with respect to any payment of principal of (or premium, if any, on) or
interest on such Security to any Holder who is a partnership, or an agent or other Person holding
such Security on behalf of a beneficial owner of such payment, to the extent that, but only to the
extent that, a member of such a partnership or the beneficial owner of such payment would not have
been entitled to the Additional Amounts had such member or beneficial owner been the Holder of the
Security; (c) to the extent relating to Taxes imposed by reason of the Holder’s or beneficial
owner’s failure, upon reasonable request by the Company to the Holder, to comply with any
procedural formalities necessary for the Company to obtain authorization to make the payment
without such deduction or withholding including any requirement to provide any certification,
documentation, information or other evidence concerning such Holder’s or beneficial owner’s
nationality, residence, identity or connection with the Relevant Taxing Jurisdiction if compliance
is required by law, regulation, administrative practice or an applicable treaty as a precondition
to exemption from, or a reduction in the rate of deduction or withholding of, such Taxes; (d) with
respect to any withholding or deduction imposed on a payment in respect of the Securities to an
individual that is required to be made pursuant to any European Union directive on the taxation of
savings implementing the conclusions of the Economic and Financial Council of Ministers of the
member states of the European Union (ECOFIN) Council meeting of November 26-27, 2000 or any law
implementing or complying with that directive; (e) with respect to any tax assessment or other
governmental charge which would have been avoided if the relevant Security had been presented (if
presentation is required) to another paying agent located in a member state of the European Union
or other jurisdiction; (f) with respect to any Taxes that are payable otherwise than by withholding
or deduction from a payment of principal of, premium, if any, or interest under the Securities or
(g) with respect to any combination of any of the above clauses.

(c) The Company will make any required withholding or deduction and remit the full amount
deducted or withheld to the Relevant Taxing Jurisdiction in accordance with applicable law. Upon
request, the Company will provide the Trustee with official receipts or other documentation
evidencing the payment of the Taxes with respect to which Additional Amounts are paid.

(d) If the Company is or will become obligated to pay Additional Amounts under or with respect
to any payment made on the Securities, at least 30 days prior to the date of such payment, the
Company will deliver to the Trustee an Officer’s Certificate stating the fact that Additional
Amounts will be payable and the amount so payable and such other information necessary to enable
the Paying Agent to pay Additional Amounts to Holders on the relevant payment date.

 

32

 

(e) Whenever in this Indenture there is mentioned, in any context:

(1) the payment of principal;

(2) redemption prices or repurchase prices in connection with a redemption or
repurchase of Securities of any series;

(3) interest; or

(4) any other amount payable on or with respect to any of the Securities,

such reference shall be deemed to include payment of Additional Amounts as described under this
Section 604 to the extent that, in such context, Additional Amounts are, were or would be payable
in respect thereof.

(f) The Company will pay any present or future stamp, court or documentary Taxes or any other
excise, property or similar Taxes, charges or levies that arise in any Relevant Taxing Jurisdiction
from the execution, delivery, enforcement or initial registration (but not transfer) of the
Securities, this Indenture or any other document or instrument in relation thereof, or the receipt
of any payments with respect to the Securities, excluding such Taxes, charges or similar levies
imposed by any jurisdiction that is not a Relevant Taxing Jurisdiction or which arise in connection
with any assignment, novation, exchange or transfer by any Holder or beneficial owner of its rights
and/or obligations under the Securities, this Indenture or any other documents or instruments in
relation thereof, and the Company hereby agrees to indemnify the Holders of Securities for any such
Taxes (which are not so excluded) paid by such Holders.

(g) The obligations described under this Section 604 will survive any termination, defeasance
or discharge of this Indenture and will apply mutatis mutandis to any jurisdiction in which any
successor Person to the Company is organized or any political subdivision or taxing authority or
agency thereof or therein.

SECTION 605. Negative Pledge

(a) The Company agrees that for so long as any Securities of any series shall remain
Outstanding, without consent of the Holders of a majority in aggregate principal amount of the
Outstanding Securities of each series, the Company shall not create, incur or assume or permit the
creation, incurrence or assumption of any Lien (other than Permitted Liens) upon the ordinary
shares of Western Power Distribution (East Midlands) plc or Western Power Distribution (West
Midlands) plc in order to secure Debt of the Company. The foregoing agreement shall not restrict
the ability of Subsidiaries or Affiliates of the Company to create, incur or assume any Lien upon
their properties or assets other than the ordinary shares of Western Power Distribution (East
Midlands) plc and Western Power Distribution (West Midlands) plc, either in connection with project
financings or otherwise.

(b) The provisions of subsection (a) above shall not prohibit the creation, issuance,
incurrence or assumption of any Lien if either:

(i) the Company shall make effective provision whereby all Securities of each
series then Outstanding shall be secured equally and ratably with all other Debt
then outstanding under such Lien; or

 

33

 

(ii) the Company shall deliver to the Trustee bonds, notes or other evidences
of indebtedness secured by the Lien which secures such Debt (hereinafter called
“Secured Obligations”) (A) in an aggregate principal amount equal to the aggregate
principal amount of the Securities of each series then Outstanding, (B) maturing (or
being subject to mandatory redemption) on such dates and in such principal amounts
that, at Stated Maturity of the Outstanding Securities, there shall mature (or be
redeemed) Secured Obligations equal in principal amount to such Securities then to
mature and (C) containing, in addition to any mandatory redemption provisions
applicable to all Secured Obligations outstanding under such Lien and any mandatory
redemption provisions contained therein pursuant to clause (B) above, mandatory
redemption provisions correlative to the provisions, if any, for the mandatory
redemption (pursuant to a sinking fund or otherwise) of the Securities or for the
redemption thereof at the option of the Holder, as well as a provision for mandatory
redemption upon an acceleration of the maturity of all Outstanding Securities
following an Event of Default (such mandatory redemption to be rescinded upon the
rescission of such acceleration); it being expressly understood that such Secured
Obligations (X) may, but need not, bear interest, (Y) may, but need not, contain
provisions for the redemption thereof at the option of the issuer, any such
redemption to be made at a redemption price or prices not less than the principal
amount thereof and (Z) shall be held by the Trustee for the benefit of the Holders
of all Securities from time to time Outstanding subject to such terms and conditions
relating to surrender to the Company, transfer restrictions, voting, application of
payments of principal and interest and other matters as shall be set forth in an
indenture supplemental hereto specifically providing for the delivery to the Trustee
of such Secured Obligations.

(c) If the Company shall elect either of the alternatives described in subsection (b) above,
the Company shall deliver to the Trustee:

(i) an indenture supplemental hereto (A) together with any appropriate
intercreditor arrangements, whereby such Securities of any series then Outstanding
shall be secured by the Lien referred to in subsection (b) above equally and ratably
with all other indebtedness secured by such Lien or (B) providing for the delivery
to the Trustee of Secured Obligations;

(ii) an Officer’s Certificate (A) stating that, to the knowledge of the signer,
(1) no Event of Default has occurred and is continuing and (2) no event has occurred
and is continuing which entitles the secured party under such Lien to accelerate the
maturity of the indebtedness outstanding thereunder and (B) stating the aggregate
principal amount of indebtedness issuable, and then proposed to be issued, under and
secured by such Lien; and

(iii) an Opinion of Counsel (A) if the Securities then Outstanding are to be
secured by such Lien, to the effect that all such Securities then Outstanding are
entitled to the benefit of such Lien equally and ratably with all other indebtedness
outstanding under such Lien or (B) if Secured Obligations are to be delivered to the
Trustee, to the effect that such Secured Obligations constitute valid obligations
and are secured by such Lien equally and ratably with all other indebtedness then
secured by such Lien.

 

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(d) For the purposes of this Section 605, except as otherwise expressly provided or unless the
context otherwise requires:

(i) “Debt”, with respect to any Person, means (A) indebtedness of such Person
for borrowed money evidenced by a bond, debenture, note or other similar written
instrument or agreement by which such Person is obligated to repay such borrowed
money and (B) any guaranty by such Person of any such indebtedness of another
Person. “Debt” does not include, among other things, (W) indebtedness of such
Person under any installment sale or conditional sale agreement or any other
agreement relating to indebtedness for the deferred purchase price of property or
services, (X) any trade obligations (including obligations under agreements relating
to the purchase and sale of any commodity, including power purchase or sale
agreements, and any commodity hedges or derivatives regardless of whether such
transaction is a “financial” or physical transaction) or other obligations of such
Person in the ordinary course of business, (Y) obligations of such Person under any
lease agreement (including any lease intended as security), whether or not such
obligations are required to be capitalized on the balance sheet of such Person under
generally accepted accounting principles, or (Z) liabilities secured by any Lien on
any property owned by such Person if and to the extent that such Person has not
assumed or otherwise become liable for the payment thereof.

(ii) “Lien” means any lien, mortgage, deed of trust, pledge or security
interest, in each case, intended to secure the repayment of Debt, except for any
Permitted Lien.

(iii) “Permitted Liens” means any:

(A) Liens existing on the Execution Date;

(B) Liens securing Debt which matures less than one year from the
date of issuance or incurrence thereof and is not extendible at the
option of the issuer, and any refundings, refinancings and/or
replacements of any such Debt by or with similar secured Debt;

(C) other Liens securing Debt the principal amount of which does
not exceed 10% of the total assets of the Company and its Subsidiaries
on a consolidated basis as shown on the Company’s most recent audited
consolidated balance sheet; and

(D) Liens granted in connection with extending, renewing,
replacing or refinancing, in whole or in part, the Debt secured by
Liens described in the foregoing clauses (A) through (C), to the extent
of such Debt so extended, renewed, replaced or refinanced.

SECTION 606. Financial Statements.

So long as any Securities of any series are Outstanding under this Indenture, during such
periods as the Company shall not be subject to the periodic reporting requirements of Section 13 or
15(d) of the Exchange Act and not exempt from reporting pursuant to Rule 12g3-2(b) under the
Exchange Act, the Company shall make available to Holders of such Securities by means of posting on
the Company’s website or other similar means, as soon as reasonably available and in any event
within 120 days after the end of each fiscal year of the Company, the Company’s audited
consolidated balance sheet, income statement and cash flow statement for such fiscal year prepared
in accordance with generally accepted accounting principles or International Financial Reporting
Standards (IFRS) (with notes to such financial statements), together with an audit report thereon
by an independent accounting firm of established
international reputation, and a management’s narrative analysis of the results of operations
explaining the reasons for material changes in the amount of revenue and expense items between the
most recent fiscal year presented and the fiscal year immediately preceding it.

 

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If the Company is unable, for any reason, to post such financial statements on its website, it
shall furnish such financial statements to the Trustee, who, at the expense of the Company, will
furnish them to the Holders of such Securities, subject to the protections made available to the
Trustee by Section 1002. In addition, for so long as any of such Securities remain Outstanding,
the Company will furnish to prospective purchasers of such Securities, upon their request, the
information described above as well as any other information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act of 1933, as amended, for compliance with Rule 144A under
the Securities Act, unless the Company is then subject to Section 13 or 15(d) of the Exchange Act
or is exempt from reporting pursuant to Rule 12g3-2(b) under the Exchange Act.

SECTION 607. Existence as a Corporation.

Subject to the rights of the Company under Article Eleven, the Company shall do or cause to be
done all things necessary to preserve and keep in full force and effect its existence as a
Corporation.

SECTION 608. Annual Officer’s Certificate

Not later than April 15 in each year, commencing April 15, 2012, the Company shall deliver to
the Trustee an Officer’s Certificate which need not comply with Section 102, executed by its
principal executive officer, principal financial officer or principal accounting officer, as to
such officer’s knowledge of the Company’s compliance with all conditions and covenants under this
Indenture, such compliance to be determined without regard to any period of grace or requirement of
notice under this Indenture.

SECTION 609. Waiver of Certain Covenants.

The Company may omit in any particular instance to comply with any covenant, restriction,
condition or other term or provision

(a) contained in Section 605 or specified with respect to the Securities of any series,
or any Tranche thereof, as contemplated by Section 301 or Section 1201(b), if before the
time for such compliance the Holders of a majority in aggregate principal amount of the
Outstanding Securities of all series and Tranches with respect to which compliance is to be
omitted, considered as one class, shall, by Act of such Holders, either waive such
compliance in such instance or generally waive such compliance; or

(b) set forth in Section 607 or Article Eleven if before the time for such compliance
the Holders of a majority in aggregate principal amount of Securities Outstanding under this
Indenture shall, by Act of such Holders, either waive such compliance in such instance or
generally waive such compliance;

provided, however, that no such waiver shall be effective as to any of the matters contemplated in
clause (a), (b) or (c) in Section 1202 without the consent of Holders specified in such Section;
and provided, further, that in no event shall any such waiver extend to or affect such covenant,
restriction, condition, term or provision except to the extent so expressly waived, and, until such
waiver shall become effective,
the obligations of the Company and the duties of the Trustee in respect of any such covenant,
restriction, condition, term or provision shall remain in full force and effect.

 

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ARTICLE SEVEN

SATISFACTION AND DISCHARGE

SECTION 701. Satisfaction and Discharge of Securities.

Any Security or Securities, or any portion of the principal amount thereof, shall be deemed to
have been paid and no longer Outstanding for all purposes of this Indenture, and the entire
indebtedness of the Company in respect thereof shall be satisfied and discharged if there shall
have been irrevocably deposited with the Trustee or any Paying Agent (other than the Company), in
trust:

(a) money in an amount which shall be sufficient, or

(b) in the case of a deposit made prior to the Maturity of such Securities or portions
thereof, Eligible Obligations, which shall not contain provisions permitting the redemption
or other prepayment thereof at the option of the issuer thereof, the principal of and the
interest on which when due, without any regard to reinvestment thereof, will provide moneys
which, together with the money, if any, deposited with or held by the Trustee or such Paying
Agent, shall be sufficient, or

(c) a combination of (a) or (b) which shall be sufficient,

to pay when due the principal of and premium, if any, and interest, if any, due and to become due
on such Securities or portions thereof; provided, however, that in the case of the provision for
payment or redemption of less than all the Securities of any series or Tranche, such Securities or
portions thereof shall have been selected by the Trustee as provided herein and, in the case of a
redemption, the notice requisite to the validity of such redemption shall have been given or
irrevocable authority shall have been given by the Company to the Trustee to give such notice,
under arrangements satisfactory to the Trustee; and provided, further, that the Company shall have
delivered to the Trustee and such Paying Agent:

(w) if such deposit shall have been made prior to the Maturity of such Securities, a
Company Order stating that the money and Eligible Obligations deposited in accordance with
this Section shall be held in trust, as provided in Section 603;

(x) if Eligible Obligations shall have been deposited, an Opinion of Counsel to the
effect that such obligations constitute Eligible Obligations and do not contain provisions
permitting the redemption or other prepayment thereof at the option of the issuer thereof,
and a written statement of an independent public accountant of nationally recognized
standing, selected by the Company, to the effect that the other requirements set forth in
clause (b) and (c) above have been satisfied;

 

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(y) if such deposit shall have been made prior to the Maturity of such Securities, (i)
an Officer’s Certificate stating the Company’s intention that, upon delivery of such
Officer’s Certificate, its indebtedness in respect of such Securities or portions thereof
will have been satisfied and discharged as contemplated in this Section and (ii) either (1)
an instrument wherein the Company, notwithstanding the satisfaction and discharge of its
indebtedness in respect of such Securities, shall retain the obligation (which shall be
absolute and unconditional) to irrevocably deposit with the Trustee or Paying Agent (other
than the Company), in trust, such
additional sums of money, if any, or additional Eligible Obligations (meeting the
requirements of this Section 701), if any, or any combination thereof, at such time or
times, as shall be necessary, together with the money and/or Eligible Obligations
theretofore so deposited, to pay when due the principal of and premium, if any, and interest
due and to become due on such Securities or portions thereof, all in accordance with and
subject to the provisions of said Section 702; provided, however, that such instrument may
state that the obligation of the Company to make additional deposits as aforesaid shall be
subject to the delivery to the Company by the Trustee of a notice asserting the deficiency
(which the Trustee shall provide if such statement is included in the instrument and if a
Responsible Officer of the Trustee has actual knowledge of such deficiency) accompanied by
an opinion of an independent public accountant of nationally recognized standing, selected
by the Trustee, showing the calculation thereof (which opinion shall be obtained at the
expense of the Company); or (2) if such deposit shall have been made more than 12 months
prior to the Maturity of such Securities an instrument as set out in (1) and an Opinion of
Counsel stating that (A) the Company has received from, or there has been published by, the
U.S. Internal Revenue Service a ruling or (B) since the Execution Date, there has been a
change in the applicable U.S. federal income tax law, in either case (A) or (B) to the
effect that, and based thereon such opinion shall confirm that, the Holders of such
Securities will not recognize gain or loss for U.S. federal income tax purposes as a result
of the deposit, defeasance and discharge to be effected with respect to such Securities and
will be subject to U.S. federal income tax on the same amount, in the same manner and at the
same times as would be the case if such deposit, defeasance and discharge were not to occur;
and

(z) an Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the satisfaction and discharge of such
Securities to the extent contemplated by this Section have been complied with.

Upon the deposit of money or Eligible Obligations, or both, in accordance with this Section,
together with the documents required by clauses (w), (x), (y) and (z) above, the Trustee shall,
upon Company Request, acknowledge in writing that such Securities or portions thereof are deemed to
have been paid for all purposes of this Indenture and that the entire indebtedness of the Company
in respect thereof has been satisfied and discharged as contemplated in this Section. In the event
that all of the conditions set forth in the preceding paragraph shall have been satisfied in
respect of any Securities or portions thereof except that, for any reason, the Officer’s
Certificate specified in clause (y) (if otherwise required) shall not have been delivered, such
Securities or portions thereof shall nevertheless be deemed to have been paid for all purposes of
this Indenture, and the Holders of such Securities or portions thereof shall nevertheless be no
longer entitled to the benefits provided by this Indenture or of any of the covenants of the
Company under Article Six (except the covenants contained in Sections 602 and 603) or any other
covenants made in respect of such Securities or portions thereof as contemplated by Section 301 or
Section 1201(b), but the indebtedness of the Company in respect of such Securities or portions
thereof shall not be deemed to have been satisfied and discharged prior to Maturity for any other
purpose; and, upon Company Request, the Trustee shall acknowledge in writing that such Securities
or portions thereof are deemed to have been paid for all purposes of this Indenture.

If payment at Stated Maturity of less than all of the Securities of any series, or any Tranche
thereof, is to be provided for in the manner and with the effect provided in this Section, the
Trustee shall select such Securities, or portions of principal amount thereof, in the manner
specified by Section 403 for selection for redemption of less than all the Securities of a series
or Tranche.

 

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In the event that Securities which shall be deemed to have been paid for purposes of this
Indenture, and, if such is the case, in respect of which the Company’s indebtedness shall have been
satisfied and discharged, all as provided in this Section, do not mature and are not to be redeemed
within
the sixty (60) day period commencing with the date of the deposit of moneys or Eligible
Obligations, as aforesaid, the Company shall, as promptly as practicable, give a notice, in the
same manner as a notice of redemption with respect to such Securities, to the Holders of such
Securities to the effect that such deposit has been made and the effect thereof.

Notwithstanding that any Securities shall be deemed to have been paid for purposes of this
Indenture, as aforesaid, the obligations of the Company and the Trustee in respect of such
Securities under Sections 304, 305, 306, 404, 602, 603, 907 and 914 and this Article shall survive.

The Company shall pay, and shall indemnify the Trustee or any Paying Agent with which Eligible
Obligations shall have been deposited as provided in this Section against, any tax, fee or other
charge imposed on or assessed against such Eligible Obligations or the principal or interest
received in respect of such Eligible Obligations, including, but not limited to, any such tax
payable by any entity deemed, for tax purposes, to have been created as a result of such deposit.

Anything herein to the contrary notwithstanding, (a) if, at any time after a Security would be
deemed to have been paid for purposes of this Indenture, and, if such is the case, the Company’s
indebtedness in respect thereof would be deemed to have been satisfied and discharged, pursuant to
this Section (without regard to the provisions of this paragraph), (i) the Trustee or any Paying
Agent, as the case may be, shall be required to return the money or Eligible Obligations, or
combination thereof, deposited with it as aforesaid to the Company or its representative under any
applicable bankruptcy, insolvency or other similar law, (ii) the Trustee or any Paying Agent, as
the case may be, is unable to apply any money in accordance with this Article with respect to any
Securities by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application or (iii) the Company fails to comply with its
obligations in paragraph (y)(ii) of the first paragraph of this Section 701, such Security shall
thereupon be deemed retroactively not to have been paid (in the case of (i) or (ii)) and any
satisfaction and discharge of the Company’s indebtedness in respect thereof shall retroactively be
deemed not to have been effected (in the case of (i), (ii) or (iii)), and such Security shall be
deemed to remain Outstanding and (b) any satisfaction and discharge of the Company’s indebtedness
in respect of any Security shall be subject to the provisions of the last paragraph of Section 603.

SECTION 702. Satisfaction and Discharge of Indenture.

This Indenture shall upon Company Request cease to be of further effect with respect to any
Security or Securities (except as hereinafter expressly provided), and the Trustee, at the expense
of the Company, shall execute such instruments as the Company shall reasonably request to evidence
and acknowledge the satisfaction and discharge of this Indenture with respect to such Securities,
when:

(1) either

(A) all such Securities theretofore authenticated and delivered (other than (i)
Securities which have been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 306 and (ii) Securities for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and thereafter repaid to
the Company or discharged from such trust as provided in Section 603) have been delivered to
the Trustee for cancellation; or

 

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(B) all such Securities not theretofore delivered to the Trustee for cancellation;

(i) have become due and payable, or

(ii) will become due and payable at their Stated Maturity within one year, or

(iii) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in
the name, and at the expense, of the Company,

and the Company, in the case of (i), (ii) or (iii) above, has (1) deposited or caused
to be deposited with the Trustee as trust funds in trust for the purpose money in an amount
sufficient to pay and discharge the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for principal and any premium and interest to the
date of such deposit (in the case of Securities which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be and (2) delivered an instrument
wherein the Company shall retain the obligation (which shall be absolute and unconditional)
to irrevocably deposit with the Trustee, in trust, such additional sums of money, if any, at
such time or times, as shall be necessary, together with the money theretofore so
deposited, to pay when due the principal of and premium, if any, and interest due and to
become due on such Securities or portions thereof;

(2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company with respect to such Securities; and

(3) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture with respect to such Securities have been
complied with;

provided, however, that if, in accordance with the last paragraph of Section 701, any Security,
previously deemed to have been paid for purposes of this Indenture, shall be deemed retroactively
not to have been so paid, this Indenture shall thereupon be deemed retroactively not to have been
satisfied and discharged, as aforesaid, and to remain in full force and effect, and the Company
shall execute and deliver such instruments as the Trustee shall reasonably request to evidence and
acknowledge the same.

Notwithstanding the satisfaction and discharge of this Indenture as aforesaid, the obligations
of the Company and the Trustee under Sections 304, 305, 306, 404, 602, 603, 907 and 914 and this
Article shall survive.

Upon satisfaction and discharge of this Indenture as provided in this Section, the Trustee
shall turn over to the Company any and all money, securities and other property then held by the
Trustee for the benefit of the Holders of the Securities (other than money and Eligible Obligations
held by the Trustee pursuant to Section 703) and shall execute and deliver to the Company such
instruments as, in the judgment of the Company, shall be necessary, desirable or appropriate to
effect or evidence the satisfaction and discharge of this Indenture.

 

40

 

SECTION 703. Application of Trust Money.

Neither the Eligible Obligations nor the money deposited pursuant to Section 701 or Section
702, nor the principal or interest payments on any such Eligible Obligations, shall be withdrawn or
used for any purpose other than, and shall be held in trust for, the payment of the principal of
and
premium, if any, and interest, if any, on the Securities or portions of principal amount
thereof in respect of which such deposit was made, all subject, however, to the provisions of
Section 603; provided, however, that any cash received from such principal or interest payments on
such Eligible Obligations, if not then needed for such purpose, shall, to the extent practicable
and upon Company Request and delivery to the Trustee of the documents referred to in clause (x) in
the first paragraph of Section 701, be invested in Eligible Obligations of the type described in
clause (b) in the first paragraph of Section 701 maturing at such times and in such amounts as
shall be sufficient, together with any other moneys and the proceeds of any other Eligible
Obligations then held by the Trustee, to pay when due the principal of and premium, if any, and
interest, if any, due and to become due on such Securities or portions thereof on and prior to the
Maturity thereof, and interest earned from such reinvestment shall be paid over to the Company as
received, free and clear of any trust, lien or pledge under this Indenture (except the lien
provided by Section 907); and provided, further, that any moneys held in accordance with this
Section on the Maturity of all such Securities in excess of the amount required to pay the
principal of and premium, if any, and interest, if any, then due on such Securities shall be paid
over to the Company free and clear of any trust, lien or pledge under this Indenture (except the
lien provided by Section 907); and provided, further, that if an Event of Default shall have
occurred and be continuing, moneys to be paid over to the Company pursuant to this Section shall be
held until such Event of Default shall have been waived or cured.

ARTICLE EIGHT

EVENTS OF DEFAULT; REMEDIES

SECTION 801. Events of Default.

“Event of Default”, wherever used herein with respect to Securities of any series, means any
one of the following events:

(a) default in the payment of any interest on any Security of such series when it
becomes due and payable and continuance of such default for a period of 30 days; provided,
however, that no such default shall constitute an “Event of Default” if the Company has made
a valid extension of the interest payment period with respect to the Securities of such
series, of which such Security is a part, if so provided as contemplated by Section 301; or

(b) default in the payment of the principal of or premium, if any, on any Security of
such series when it becomes due and payable; provided, however, that no such default shall
constitute an “Event of Default” if the Company has made a valid extension of the Maturity
of the Securities of the series, of which such Security is a part, if so provided as
contemplated by Section 301; or

(c) default in the performance of, or breach of, any covenant or warranty of the
Company in this Indenture (other than a covenant or warranty a default in the performance of
which or breach of which is elsewhere in this Section specifically addressed or which has
expressly been included in this Indenture solely for the benefit of one or more series of
Securities other than such series) and continuance of such default or breach for a period of
90 days after there has been given, by registered or certified mail, to the Company by the
Trustee, or to the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of such series, a written notice specifying
such default or breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder, unless the Trustee, or the Trustee and the Holders of a
principal amount of Securities of such series not less than the principal amount of
Securities the Holders of which gave such notice, as the case may be, shall agree in writing
to an extension of such period prior to its expiration; provided,
however, that the Trustee, or the Trustee and the Holders of such aggregate principal
amount of Securities of such series, as the case may be, shall be deemed to have agreed to
an extension of such period if corrective action is initiated by the Company within such
period and is being diligently pursued; or

 

41

 

(d) the entry by a court having jurisdiction in the premises of (1) a decree or order
for relief in respect of the Company in an involuntary case or proceeding under any
applicable bankruptcy, insolvency, reorganization or other similar law or (2) a decree or
order adjudging the Company a bankrupt or insolvent, or approving as properly filed a
petition by one or more Persons other than the Company seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company under any applicable bankruptcy,
insolvency, reorganization or other similar law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official for the Company or for
any substantial part of its property, or ordering the winding up or liquidation of its
affairs, and any such decree or order for relief or any such other decree or order shall
have remained unstayed and in effect for a period of 90 consecutive days; or

(e) the commencement by the Company of a voluntary case or proceeding under any
applicable bankruptcy, insolvency, reorganization or other similar law or of any other case
or proceeding to be adjudicated a bankrupt or insolvent, or the consent by the Company to
the entry of a decree or order for relief in respect of the Company in a case or proceeding
under any applicable bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against the Company, or the
filing by the Company of a petition or answer or consent seeking reorganization or relief
under any applicable bankruptcy, insolvency, reorganization or other similar law, or the
consent by the Company to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar
official of the Company or of any substantial part of its property, or the making by the
Company of an assignment for the benefit of creditors, or the admission by the Company in
writing of its inability to pay its debts generally as they become due, or the authorization
of such action by the Board of Directors of the Company; or

(f) any other Event of Default specified with respect to Securities of such series.

An Event of Default with respect to Securities of any series shall not necessarily constitute
an Event of Default with respect to the Securities of any other series issued under this Indenture.

SECTION 802. Acceleration of Maturity; Rescission and Annulment.

If an Event of Default shall have occurred and be continuing with respect to Securities of any
series at the time Outstanding, then in every such case the Trustee or the Holders of not less than
25% in aggregate principal amount of the Outstanding Securities of such series may declare the
aggregate principal amount (or, if any of the Securities of such series are Discount Securities,
such portion of the principal amount of such Securities as may be specified in the terms thereof as
contemplated by Section 301) of all of the Securities of such series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and
upon receipt by the Company of notice of such declaration such aggregate principal amount (or
specified amount) shall become immediately due and payable; provided, however, that if an Event of
Default shall have occurred and be continuing with respect to more than one series of Securities,
the Trustee or the Holders of not less than 25% in aggregate principal amount of the Outstanding
Securities of all such series, considered as one class, shall have the right to make such
declaration of acceleration, and not the Holders of the Securities of any one of such series.

 

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At any time after such a declaration of acceleration with respect to Securities of any series
shall have been made and before a judgment or decree for payment of the money due shall have been
obtained by the Trustee as hereinafter in this Article provided, the Event or Events of Default
giving rise to such declaration of acceleration shall, without further act, be deemed to have been
cured, and such declaration and its consequences shall, without further act, be deemed to have been
rescinded and annulled, if

(a) the Company shall have paid or deposited with the Trustee a sum sufficient to pay

(1) all overdue interest, if any, on all Securities of such series then
Outstanding;

(2) the principal of and premium, if any, on any Securities of such series then
Outstanding which have become due otherwise than by such declaration of acceleration
and interest thereon at the rate or rates prescribed therefor in such Securities;

(3) to the extent that payment of such interest is lawful, interest upon
overdue interest at the rate or rates prescribed therefor in such Securities;

(4) all amounts due to the Trustee under Section 907;

and

(b) all Events of Default with respect to Securities of such series, other than the non
payment of the principal of Securities of such series which shall have become due solely by
such declaration of acceleration, shall have been cured or waived as provided in Section
813.

No such rescission shall affect any subsequent Event of Default or impair any right consequent
thereon.

SECTION 803. Collection of Indebtedness and Suits for Enforcement by Trustee.

If an Event of Default described in clause (a) or (b) of Section 801 shall have occurred, the
Company shall, upon demand of the Trustee, pay to it, for the benefit of the Holders of the
Securities of the series with respect to which such Event of Default shall have occurred, the whole
amount then due and payable on such Securities for principal and premium, if any, and interest, if
any, and, to the extent permitted by law, interest on premium, if any, and on any overdue principal
and interest, at the rate or rates prescribed therefor in such Securities, and, in addition
thereto, such further amount as shall be sufficient to cover any amounts due to the Trustee under
Section 907.

If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its
own name and as trustee of an express trust, may institute a judicial proceeding for the collection
of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of the property of the
Company or any other obligor upon such Securities, wherever situated.

If an Event of Default with respect to Securities of any series shall have occurred and be
continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the
rights of the Holders of Securities of such series by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific
enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

 

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SECTION 804. Trustee May File Proofs of Claim.

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Company or any other obligor upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Trustee shall have made any demand on the Company for the payment of overdue
principal or interest) shall be entitled and empowered, by intervention in such proceeding or
otherwise,

(a) to file and prove a claim for the whole amount of principal, premium, if any, and
interest, if any, owing and unpaid in respect of the Securities and to file such other
papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for amounts due to the Trustee under Section 907) and of the
Holders allowed in such judicial proceeding, and

(b) to collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amounts due it under Section 907.

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, be a member of a creditors’ or similar other
committee.

SECTION 805. Trustee May Enforce Claims Without Possession of Securities.

All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders in respect of which
such judgment has been recovered.

 

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SECTION 806. Application of Money Collected.

Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, to the extent permitted by law, at the date or dates fixed by the Trustee and, in case of
the distribution of such money on account of principal or premium, if any, or interest, if any,
upon presentation of the Securities in respect of which or for the benefit of which such money
shall have been collected and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:

First: To the payment of all amounts due the Trustee under Section 907;

Second: To the payment of the amounts then due and unpaid for principal of and
premium, if any, and interest, if any, on the Outstanding Securities in respect of which or
for the benefit of which such money has been collected; or, in case such proceeds shall be
insufficient to pay in full such amounts so due and unpaid upon such Securities, then to the
payment of the principal thereof and interest, if any, thereon, without any preference or
priority of any kind, ratably according to the respective amounts so due and payable for
principal and interest, if any, with any balance then remaining to the payment of premium,
if any and, if so specified as contemplated by Section 301 with respect to the Securities of
any series, or any Tranche thereof, interest, if any, on overdue premium, if any, and
overdue interest, if any, ratably as aforesaid, all to the extent permitted by applicable
law; and;

Third: To the payment of the remainder, if any, to the Company or to whomsoever may be
lawfully entitled to receive the same or as a court of competent jurisdiction may direct.

SECTION 807. Limitation on Suits.

No Holder shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

(a) such Holder shall have previously given written notice to the Trustee of a
continuing Event of Default with respect to the Securities of such series;

(b) the Holders of 25% in aggregate principal amount of the Outstanding Securities of
all series in respect of which an Event of Default shall have occurred and be continuing,
considered as one class, shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder;

(c) such Holder or Holders shall have offered to the Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in compliance with such request;

(d) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity shall have failed to institute any such proceeding; and

(e) no direction inconsistent with such written request shall have been given to the
Trustee during such 60-day period by the Holders of a majority in aggregate principal amount
of the Outstanding Securities of all series in respect of which an Event of Default shall
have occurred and be continuing, considered as one class;

it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such Holders.

 

45

 

SECTION 808. Unconditional Right of Holders to Receive Principal, Premium and Interest.

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and premium,
if any, and (subject to payment to a different Person in accordance with Section 307) interest, if
any, on such Security on the Stated Maturity or Maturities expressed in such Security (or, in the
case of redemption, on the Redemption Date) and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired without the consent of such Holder.

SECTION 809. Restoration of Rights and Remedies.

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding shall have been discontinued or abandoned for any reason,
or shall have been determined adversely to the Trustee or to such Holder, then and in every such
case, subject to any determination in such proceeding, the Company, the Trustee and such Holder
shall be restored severally and respectively to their former positions hereunder and thereafter all
rights and remedies of the Trustee and such Holder shall continue as though no such proceeding had
been instituted.

SECTION 810. Rights and Remedies Cumulative.

Except as otherwise provided in the last paragraph of Section 306, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

SECTION 811. Delay or Omission Not Waiver.

No delay or omission of the Trustee or of any Holder to exercise any right or remedy accruing
upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such
Event of Default or an acquiescence therein. Every right and remedy given by this Article or by
law to the Trustee or to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may be.

SECTION 812. Control by Holders of Securities.

If an Event of Default shall have occurred and be continuing in respect of a series of
Securities, the Holders of a majority in aggregate principal amount of the Outstanding Securities
of such series shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, with respect to the Securities of such series; provided, however, that if an Event of
Default shall have occurred and be continuing with respect to more than one series of Securities,
the Holders of a majority in aggregate principal amount of the Outstanding Securities of all such
series, considered as one class, shall have the right to make such direction, and not the Holders
of the Securities of any one of such series; and provided, further, that

(a) such direction shall not be in conflict with any rule of law or with this
Indenture, and could not involve the Trustee in personal liability in circumstances where
indemnity would not, in the Trustee’s sole discretion, be adequate, and

(b) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

 

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SECTION 813. Waiver of Past Defaults.

The Holders of not less than a majority in aggregate principal amount of the Outstanding
Securities of any series may on behalf of the Holders of all the Securities of such series waive
any past default hereunder with respect to such series and its consequences, except a default

(a) in the payment of the principal of or premium, if any, or interest, if any, on any
Security of such series, or

(b) in respect of a covenant or provision hereof which under Section 1202 cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such
series or each affected Tranche thereof.

Upon any such waiver, such default shall cease to exist, and any and all Events of Default
arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

SECTION 814. Undertaking for Costs.

The Company and the Trustee agree, and each Holder by his acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require, in any suit for the enforcement of
any right or remedy under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party
litigant, in each case in the manner, to the extent, and subject to the exceptions provided in the
Trust Indenture Act; provided, that the provisions of this Section shall not be deemed to authorize
any court to require such an undertaking in, and shall not apply to, any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in aggregate principal amount of the Securities then Outstanding, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of or premium, if any,
or interest, if any, on any Security on or after the Stated Maturity or Maturities expressed in
such Security (or in the case of redemption, on or after the Redemption Date).

SECTION 815. Waiver of Usury, Stay or Extension Laws.

The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants
that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

 

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ARTICLE NINE

THE TRUSTEE

SECTION 901. Certain Duties and Responsibilities.

(a) Except during the continuance of an Event of Default with respect to the Securities of any
series,

(i) the Trustee undertakes to perform, with respect to Securities of such series, such
duties and only such duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the Trustee; and

(ii) in the absence of bad faith on its part, the Trustee may, with respect to
Securities of such series, conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture; but in the case of any
such certificates or opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of any mathematical calculations or other facts, statements,
opinions or conclusions stated therein).

(b) In case an Event of Default with respect to Securities of any series shall have occurred
and be continuing, the Trustee shall exercise, with respect to Securities of such series, such of
the rights and powers vested in it by this Indenture, and use the same degree of care and skill in
their exercise, as a prudent man would exercise or use under the circumstances in the conduct of
his own affairs.

(c) No provision of this Indenture shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct,
except that

(i) this subsection shall not be construed to limit the effect of subsection (a) of
this Section;

(ii) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

(iii) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of any one or more series, as
provided herein, relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture with respect to the Securities of such series; and

(iv) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

(d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

 

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SECTION 902. Notice of Default.

The Trustee shall give notice of any default hereunder with respect to the Securities of any
series to the Holders of Securities of such series in the manner and to the extent required to do
so by the Trust Indenture Act, unless such default shall have been cured or waived; provided,
however, that in the case of any default of the character specified in Section 801(c), no such
notice to Holders shall be given until at least 60 days after the occurrence thereof. For the
purpose of this Section, the term “default” means any event which is, or after notice or lapse of
time, or both, would become, an Event of Default with respect to the Securities of such series.

SECTION 903. Certain Rights of Trustee.

Subject to the provisions of Section 901 and to the applicable provisions of the Trust
Indenture Act:

(a) the Trustee may conclusively rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have been signed
or presented by the proper party or parties;

(b) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order, as the case may be, or as otherwise
expressly provided herein, and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution;

(c) whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may,
in the absence of bad faith on its part, rely upon an Officer’s Certificate of the Company;

(d) the Trustee may consult with counsel and the written advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

(e) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any Holder pursuant to this
Indenture, unless such Holder shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;

(f) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall (subject to applicable
legal requirements) be entitled to examine,
during normal business hours, the books, records and premises of the Company,
personally or by agent or attorney;

 

49

 

(g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder;

(h) the Trustee shall not be charged with knowledge of any default (as defined in
Section 902) or any Event of Default with respect to the Securities of any series for which
it is acting as Trustee unless either (i) a Responsible Officer shall have actual knowledge
of such default or Event of Default or (ii) written notice of such default or Event of
Default, referring to this Indenture and the Securities, shall have been given to the
Trustee by the Company or any other obligor on such Securities, or by any Holder of such
Securities;

(i) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder;

(j) the Trustee shall not be liable for any action taken, suffered or omitted to be
taken by it in good faith and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;

(k) the Trustee may request that the Company deliver an Officer’s Certificate setting
forth the names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officer’s Certificate may be signed by
any person authorized to sign an Officer’s Certificate, including any person specified as so
authorized in any such certificate previously delivered and not superseded; and

(l) 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.

SECTION 904. Not Responsible for Recitals or Issuance of Securities.

The recitals contained in this Indenture and in the Securities (except the Trustee’s
certificates of authentication) shall be taken as the statements of the Company and neither the
Trustee nor any Authenticating Agent assumes responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or of the Securities.
Neither Trustee nor any Authenticating Agent shall be accountable for the use or application by the
Company of Securities or the proceeds thereof.

SECTION 905. May Hold Securities.

Each of the Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any
other agent of the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Sections 908 and 913, may otherwise deal with the Company
with the same rights it would have if it were not the Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other agent.

 

50

 

SECTION 906. Money Held in Trust.

Money held by the Trustee in trust hereunder need not be segregated from other funds, except
to the extent required by law. The Trustee shall be under no liability for interest on or
investment of any money received by it hereunder except as expressly provided herein or otherwise
agreed with, and for the sole benefit of, the Company.

SECTION 907. Compensation and Reimbursement.

The Company agrees

(a) to pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);

(b) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances reasonably incurred or made
by the Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or willful
misconduct; and

(c) to indemnify the Trustee and hold it harmless from and against, any loss, liability
or expense reasonably incurred without negligence or willful misconduct on its part, arising
out of or in connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of any of its powers or duties
hereunder.

As security for the performance of the obligations of the Company under this Section, the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, other than property and funds held in trust under Section 703 (except moneys
payable to the Company as provided in Section 703).

In addition and without prejudice to the rights provided to the Trustee under applicable law
or any of the provisions of this Indenture, when the Trustee incurs expenses or renders services in
connection with an Event of Default specified in clause (d) or (e) of Section 801, the expenses
(including the reasonable charges and expenses of its counsel) and the compensation for the
services are intended to constitute expenses of administration under any applicable bankruptcy,
insolvency or other similar law.

The Company’s obligations under this Section 907 and the Lien referred to in this Section 907
shall survive the resignation or removal of the Trustee, the discharge of the Company’s obligations
under Article Seven of this Indenture and/or the termination of this Indenture.

“Trustee” for purposes of this Section 907 shall include any predecessor Trustee; provided,
however, that the negligence, willful misconduct or bad faith of any Trustee hereunder shall not
affect the rights of any other Trustee hereunder.

 

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SECTION 908. Disqualification; Conflicting Interests.

If the Trustee shall have or acquire any conflicting interest within the meaning of the Trust
Indenture Act, it shall either eliminate such conflicting interest or resign to the extent, in the
manner
and with the effect, and subject to the conditions, provided in the Trust Indenture Act and
this Indenture. For purposes of Section 310(b)(1) of the Trust Indenture Act and to the extent
permitted thereby, the Trustee, in its capacity as trustee in respect of the Securities of any
series, shall not be deemed to have a conflicting interest arising from its capacity as trustee in
respect of the Securities of any other series.

SECTION 909. Corporate Trustee Required; Eligibility.

There shall at all times be a Trustee hereunder which shall be

(a) a Corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by Federal, State or District of
Columbia authority, or

(b) if and to the extent permitted by the Commission by rule, regulation or order upon
application, a Corporation or other Person organized and doing business under the laws of a
foreign government, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $50,000,000 or the Dollar equivalent of the
applicable foreign currency and subject to supervision or examination by authority of such
foreign government or a political subdivision thereof substantially equivalent to
supervision or examination applicable to United States institutional trustees

and, in either case, qualified and eligible under this Article and the Trust Indenture Act. If such
Corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of such supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section and the Trust
Indenture Act, it shall resign immediately in the manner and with the effect hereinafter specified
in this Article.

SECTION 910. Resignation and Removal; Appointment of Successor.

(a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 911.

(b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 911 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

(c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in aggregate principal amount of the Outstanding Securities of such
series delivered to the Trustee, the Company.

(d) If at any time:

(1) the Trustee shall fail to comply with Section 908 after written request
therefor by the Company or by any Holder who has been a bona fide Holder for at
least six months, or

 

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(2) the Trustee shall cease to be eligible under Section 909 or Section 310(a)
of the Trust Indenture Act and shall fail to resign after written request therefor
by the Company or by any such Holder, or

(3) the Trustee shall become incapable of acting or shall be adjudged a
bankrupt or insolvent or a receiver of the Trustee or of its property shall be
appointed or any public officer shall take charge or control of the Trustee or of
its property or affairs for the purpose of rehabilitation, conservation or
liquidation,

then, in any such case, (x) the Company by Board Resolution may remove the Trustee with respect to
all Securities or (y) subject to Section 814, any Holder who has been a bona fide Holder for at
least six months may, on behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee with respect to all Securities and the
appointment of a successor Trustee or Trustees.

(e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause (other than as contemplated by clause (y) in
subsection (d) or this Section), with respect to the Securities of one or more series, the Company,
by Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the
Securities of such series (it being understood that any such successor Trustee may be appointed
with respect to the Securities of one or more or all of such series and that at any time (subject
to Section 915) there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 911. If, within one year
after such resignation, removal or incapability, or the occurrence of such vacancy, a successor
Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a
majority in aggregate principal amount of the Outstanding Securities of such series delivered to
the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements of Section 911,
become the successor Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to
the Securities of such series shall have been so appointed by the Company or the Holders and
accepted appointment in the manner required by Section 911, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of itself and all others
similarly situated, petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

(f) So long as no event which is, or after notice or lapse of time, or both, would become, an
Event of Default shall have occurred and be continuing, and except with respect to a Trustee
appointed by Act of the Holders of a majority in aggregate principal amount of the Outstanding
Securities pursuant to subsection (e) of this Section, if the Company shall have delivered to the
Trustee (i) Board Resolutions of the Company appointing a successor Trustee, effective as of a date
specified therein, and (ii) an instrument of acceptance of such appointment, effective as of such
date, by such successor Trustee in accordance with Section 911, the Trustee shall be deemed to have
resigned as contemplated in subsection (b) of this Section, the successor Trustee shall be deemed
to have been appointed by the Company pursuant to subsection (e) of this Section and such
appointment shall be deemed to have been accepted as contemplated in Section 911, all as of such
date, and all other provisions of this Section and Section 911 shall be applicable to such
resignation, appointment and acceptance except to the extent inconsistent with this subsection (f).

(g) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of such series to all Holders of Securities of such series in the manner provided in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

 

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SECTION 911. Acceptance of Appointment by Successor.

(a) In the case of the appointment hereunder of a successor Trustee with respect to the
Securities of all series, every such successor Trustee so appointed shall execute, acknowledge and
deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or
the successor Trustee, such retiring Trustee shall, upon payment of all sums owed to it, execute
and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts
of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder.

(b) In the case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto wherein each successor Trustee shall accept such appointment and
which

(i) shall contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of the series to which the
appointment of such successor Trustee relates,

(ii) if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of
the series as to which the retiring Trustee is not retiring shall continue to be vested in
the retiring Trustee and

(iii) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee,

it being understood that nothing herein or in such supplemental indenture shall constitute such
Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or
trusts hereunder separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided therein and each such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of the
series to which the appointment of such successor Trustee relates; but, on request of the Company
or any successor Trustee, such retiring Trustee, upon payment of all sums owed to it, shall duly
assign, transfer and deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to which the appointment
of such successor Trustee relates.

(c) Upon request of any such successor Trustee, the Company shall execute any instruments for
more fully and certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts referred to in subsection (a) or (b) of this Section, as the case may be.

(d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

 

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SECTION 912. Merger, Conversion, Consolidation or Succession to Business.

Any Corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any Corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any Corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such Corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated with the same effect as if
such successor Trustee had itself authenticated such Securities.

SECTION 913. Preferential Collection of Claims Against Company.

If the Trustee shall be or become a creditor of the Company or any other obligor upon the
Securities (other than by reason of a relationship described in Section 311(b) of the Trust
Indenture Act), the Trustee shall be subject to any and all applicable provisions of the Trust
Indenture Act regarding the collection of claims against the Company, or such other obligor. For
purposes of Section 311(b) of the Trust Indenture Act (a) the term “cash transaction” shall have
the meaning provided in Rule 11b-4 under the Trust Indenture Act, and (b) the term
“self-liquidating paper” shall have the meaning provided in Rule 11b-6 under the Trust Indenture
Act.

SECTION 914. Appointment of Authenticating Agent.

The Trustee may appoint an Authenticating Agent or Agents with respect to the Securities of
one or more series, or any Tranche thereof, which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series or Tranche issued upon original issuance,
exchange, registration of transfer or partial redemption thereof or pursuant to Section 306, and
Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid
and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference
is made in this Indenture to the authentication and delivery of Securities by the Trustee or the
Trustee’s certificate of authentication, such reference shall be deemed to include authentication
and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of
authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating
Agent shall be acceptable to the Company and shall at all times be a Corporation organized and
doing business under the laws of the United States of America, any State or territory thereof or
the District of Columbia or the Commonwealth of Puerto Rico, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authority. If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the combined capital and
surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section, such Authenticating
Agent shall resign immediately in the manner and with the effect specified in this Section.

Any Corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any Corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any Corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall continue to be
an Authenticating Agent, provided such Corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

 

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An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

Unless appointed at the request of the Company pursuant to the last paragraph of this Section
914, the Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be entitled to be
reimbursed for such payments, in accordance with and subject to the provisions of Section 907. The
Company shall pay to each Authenticating Agent appointed at its request pursuant to the last
paragraph of this Section 914 from time to time reasonable compensation for its services under this
Section 914.

The provisions of Sections 308, 904 and 905 shall be applicable to each Authenticating Agent.

If an appointment with respect to the Securities of one or more series, or any Tranche
thereof, shall be made pursuant to this Section, the Securities of such series or Tranche may have
endorsed thereon, in addition to the Trustee’s certificate of authentication, an alternate
certificate of authentication substantially in the following form:

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 

If all of the Securities of a series may not be originally issued at one time, and if the
Trustee does not have an office capable of authenticating Securities upon original issuance located
in a Place of Payment where the Company wishes to have Securities of such series authenticated upon
original issuance, the Trustee, if so requested by the Company in writing (which writing need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel), shall appoint, in
accordance with this Section and in accordance with such procedures as shall be acceptable to the
Trustee, an
Authenticating Agent having an office in a Place of Payment designated by the Company with
respect to such series of Securities.

 

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SECTION 915. Co-trustee and Separate Trustees.

At any time or times, for the purpose of meeting the legal requirements of any applicable
jurisdiction, the Company and the Trustee shall have power to appoint, and, upon the written
request of the Trustee or of the Holders of at least 33% in aggregate principal amount of the
Securities then Outstanding, the Company shall for such purpose join with the Trustee in the
execution and delivery of all instruments and agreements necessary or proper to appoint, one or
more Persons approved by the Trustee either to act as co-trustee, jointly with the Trustee, or to
act as separate trustee, in either case with such powers as may be provided in the instrument of
appointment, and to vest in such Person or Persons, in the capacity aforesaid, any property, title,
right or power deemed necessary or desirable, subject to the other provisions of this Section. If
the Company does not join in such appointment within 15 days after the receipt by it of a request
so to do, or if an Event of Default shall have occurred and be continuing, the Trustee alone shall
have power to make such appointment.

Should any written instrument or instruments from the Company be required by any co-trustee or
separate trustee to more fully confirm to such co-trustee or separate trustee such property, title,
right or power, any and all such instruments shall, on request, be executed, acknowledged and
delivered by the Company.

Every co-trustee or separate trustee shall, to the extent permitted by law, but to such extent
only, be appointed subject to the following conditions:

(a) the Securities shall be authenticated and delivered, and all rights, powers, duties
and obligations hereunder in respect of the custody of securities, cash and other personal
property held by, or required to be deposited or pledged with, the Trustee hereunder, shall
be exercised solely, by the Trustee;

(b) the rights, powers, duties and obligations hereby conferred or imposed upon the
Trustee in respect of any property covered by such appointment shall be conferred or imposed
upon and exercised or performed either by the Trustee or by the Trustee and such co-trustee
or separate trustee jointly, as shall be provided in the instrument appointing such
co-trustee or separate trustee, except to the extent that under any law of any jurisdiction
in which any particular act is to be performed, the Trustee shall be incompetent or
unqualified to perform such act, in which event such rights, powers, duties and obligations
shall be exercised and performed by such co-trustee or separate trustee.

(c) the Trustee at any time, by an instrument in writing executed by it, with the
concurrence of the Company, may accept the resignation of or remove any co-trustee or
separate trustee appointed under this Section, and, if an Event of Default shall have
occurred and be continuing, the Trustee shall have power to accept the resignation of, or
remove, any such co-trustee or separate trustee without the concurrence of the Company.
Upon the written request of the Trustee, the Company shall join with the Trustee in the
execution and delivery of all instruments and agreements necessary or proper to effectuate
such resignation or removal. A successor to any co-trustee or separate trustee so resigned
or removed may be appointed in the manner provided in this Section;

 

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(d) no co-trustee or separate trustee hereunder shall be personally liable by reason of
any act or omission of the Trustee, or any other such trustee hereunder, and the Trustee
shall not
be personally liable by reason of any act or omission of any such co-trustee or
separate trustee; and

(e) any Act of Holders delivered to the Trustee shall be deemed to have been delivered
to each such co-trustee and separate trustee.

ARTICLE TEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 1001. Lists of Holders.

Semi-annually, not later than June 30 and December 31 in each year, and at such other times as
the Trustee may request in writing, the Company shall furnish or cause to be furnished to the
Trustee information as to the names and addresses of the Holders, and the Trustee shall preserve
such information and similar information received by it in any other capacity and afford to the
Holders access to information so preserved by it, all to such extent, if any, and in such manner as
shall be required by the Trust Indenture Act; provided, however, that no such list need be
furnished so long as the Trustee shall be the Security Registrar.

SECTION 1002. Reports by Trustee and Company.

The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the time and in the
manner provided pursuant thereto. Reports so required to be transmitted at stated intervals of not
more than 12 months shall be transmitted no later than June 15 in each calendar year with respect
to the 12-month period ending on the preceding April 15, commencing June 15, 2012. A copy of each
such report shall, at the time of such transmission to Holders, be filed by the Trustee with each
securities exchange upon which any Securities are listed, with the Commission and with the Company.
The Company will notify the Trustee when any Securities are listed on any stock exchange.

The Company shall file with the Trustee and the Commission, and transmit to Holders, such
information, documents and other reports, and such summaries thereof, as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant to such Act; provided,
however, that any such information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within 30 days
after the same is filed with the Commission.

Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt thereof shall not constitute constructive notice of any
information contained therein or determinable therefrom, including the Company’s compliance with
any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officer’s Certificates).

 

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ARTICLE ELEVEN

CONSOLIDATION, MERGER, CONVEYANCE OR OTHER TRANSFER

SECTION 1101. Company May Consolidate, Etc., Only on Certain Terms.

The Company shall not consolidate with or merge with or into any other Person, or convey or
otherwise transfer, or lease, its properties and assets as or substantially as an entirety to any
Person, unless:

(a) the Person formed by such consolidation or into which the Company is merged (if
other than the Company) or the Person which acquires or which leases (for a term extending
beyond the last Stated Maturity of the Securities of any series then Outstanding), the
properties and assets of the Company as or substantially as an entirety shall be a
Corporation organized and existing under the laws of a member state of the European Union,
the United Kingdom or the United States, any State thereof or the District of Columbia, and
shall expressly assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form satisfactory to the Trustee, (i) the due and punctual payment of the
principal of and premium, if any, and interest, if any, on all Outstanding Securities and
(ii) the performance of every covenant of this Indenture on the part of the Company to be
performed or observed;

(b) immediately after giving effect to such transaction, no Event of Default, and no
event which, after notice or lapse of time or both, would become an Event of Default, shall
have occurred and be continuing;

(c) such successor Person agrees to pay any Additional Amounts imposed by the
jurisdiction in which such successor Person is incorporated or resident for tax purposes on
payments of principal, premium, if any, and interest in respect of the Securities, subject
to exceptions equivalent to those set forth in Section 604(b); and

(d) the Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance or other
transfer or lease and, if an indenture supplemental hereto is required in connection with
such transaction, such indenture supplemental hereto complies with this Article and that all
conditions precedent herein provided for relating to such transactions have been complied
with.

SECTION 1102. Successor Corporation Substituted.

Upon any consolidation of the Company with or merger by the Company into any other Person or
any conveyance or other transfer or lease of the properties and assets of the Company substantially
as an entirety in accordance with Section 1101, the successor Corporation formed by such
consolidation or into which the Company is merged or the Corporation to which such conveyance, or
other transfer or lease is made shall succeed to, and be substituted for, and may exercise every
right and power of, the Company under this Indenture with the same effect as if such successor
Corporation had been named as the Company herein. Without limiting the generality of the
foregoing, the successor Corporation may execute and deliver to the Trustee, and thereupon the
Trustee shall, subject to the provisions of Article Three, authenticate and deliver, Securities.
All Securities so executed by the successor Corporation, and authenticated and delivered by the
Trustee, shall in all respects be entitled to the benefit of this Indenture equally and ratably
with all Securities executed, authenticated and delivered prior to the time such consolidation,
merger, conveyance or other transfer became effective.

 

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SECTION 1103. Release of Company upon Conveyance or Other Transfer.

In the case of a conveyance or other transfer to any Corporation or Corporations as
contemplated in Section 1101, upon the satisfaction of all the conditions specified in Section 1101
the Company (such term being used in this Section without giving effect to such transaction) shall
be released and discharged from all obligations and covenants under this Indenture and on and under
all Securities then Outstanding (unless the Company shall have delivered to the Trustee an
instrument in which it shall waive such release and discharge) and, upon request by the Company,
the Trustee shall acknowledge in writing that the Company has been so released and discharged.

SECTION 1104. Limitations.

For purposes of clarification and not in limitation of the provisions of Section 1101, nothing
in this Indenture shall be deemed to prevent or restrict:

(a) any consolidation or merger after the consummation of which the Company would be
the surviving or resulting Corporation, or

(b) any conveyance or other transfer, or lease of any part of the properties of the
Company which does not constitute the entirety, or substantially the entirety, thereof, or

(c) the approval by the Company of, or the consent by the Company to, any consolidation
or merger of any direct or indirect subsidiary or affiliate of the Company, or any
conveyance, transfer or lease by any such subsidiary or affiliate of any of its assets.

ARTICLE TWELVE

SUPPLEMENTAL INDENTURES

SECTION 1201. Supplemental Indentures Without Consent of Holders.

Without the consent of any Holders, the Company and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form satisfactory to the
Trustee, for any of the following purposes:

(a) to evidence the succession of another Corporation to the Company and the assumption
by any such successor of the covenants of the Company herein and in the Securities all as
provided in Article Eleven; or

(b) to add one or more covenants of the Company or other provisions for the benefit of
the Holders of all or any series of Securities, or any Tranche thereof or to surrender any
right or power herein conferred upon the Company (and if such covenants are to be for the
benefit of less than all series of Securities, stating that such covenants are expressly
being included solely for the benefit of such series); or

(c) to add any additional Events of Default which may be stated to (i) apply with
respect to all or any series of Securities Outstanding hereunder (and if such additional
Events of Default are to be for the benefit of less than all series of Securities, stating
that such additional Events of Default are expressly being included solely for the benefit
of such series) and/or (ii) remain in effect only so long as the Securities of any one or
more particular series shall remain Outstanding; or

 

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(d) to change or eliminate any provision of this Indenture or to add any new provision
to this Indenture; provided, however, that if such change, elimination or addition shall
adversely affect the interests of the Holders of Securities of any series or Tranche
Outstanding on the date of such supplemental indenture in any material respect, such change,
elimination or addition shall become effective with respect to such series or Tranche only
pursuant to the provisions of Section 1202 hereof or when no Security of such series or
Tranche remains Outstanding; or

(e) to provide collateral security for the Securities of any series; or

(f) to establish the form or terms of Securities of any series or Tranche as
contemplated by Sections 201 and 301; or

(g) to evidence and provide for the acceptance of appointment hereunder by a separate
or successor Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to
the requirements of Section 911(b); or

(h) to provide for the procedures required to permit the Company to utilize, at its
option, a non certificated system of registration for all, or any series or Tranche of, the
Securities; or

(i) to change any place or places where (1) the principal of and premium, if any, and
interest, if any, on all or any series of Securities, or any Tranche thereof, shall be
payable, (2) all or any series of Securities, or any Tranche thereof, may be surrendered for
registration of transfer, (3) all or any series of Securities, or any Tranche thereof, may
be surrendered for exchange and (4) notices and demands to or upon the Company in respect of
all or any series of Securities, or any Tranche thereof, and this Indenture may be served;
or

(j) to amend and restate this Indenture, as originally executed and delivered and as it
may have been subsequently amended, in its entirety, but with such additions, deletions and
other changes as shall not adversely affect the interests of the Holders of the Securities
in any material respect; or

(k) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other changes to
the provisions hereof or to add other provisions with respect to matters or questions
arising under this Indenture, provided that such other changes or additions shall not
adversely affect the interests of the Holders of Securities of any series or Tranche in any
material respect.

Without limiting the generality of the foregoing, if the Trust Indenture Act as in effect at
the Execution Date or at any time thereafter shall be amended and

(x) if any such amendment shall require one or more changes to any provisions hereof or
the inclusion herein of any additional provisions, or shall by operation of law be deemed to
effect such changes or incorporate such provisions by reference or otherwise, this Indenture
shall be deemed to have been amended so as to conform to such amendment to the Trust
Indenture Act, and the Company and the Trustee may, without the consent of any Holders,
enter into an indenture supplemental hereto to evidence such amendment hereof; or

 

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(y) if any such amendment shall permit one or more changes to, or the elimination of,
any provisions hereof which, at the Execution Date or at any time thereafter, are required
by the Trust Indenture Act to be contained herein or are contained herein to reflect any
provision of the Trust Indenture Act as in effect at such date, this Indenture shall be
deemed to have been amended to effect such changes or elimination, and the Company and the
Trustee may, without the consent of any Holders, enter into an indenture supplemental hereto
to this Indenture to effect such changes or elimination or evidence such amendment.

SECTION 1202. Supplemental Indentures With Consent of Holders.

Subject to the provisions of Section 1201, with the consent of the Holders of not less than a
majority in aggregate principal amount of the Securities of all series then Outstanding under this
Indenture, considered as one class, by Act of said Holders delivered to the Company and the
Trustee, the Company and the Trustee may enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture; provided, however, that if there shall be Securities of more than
one series Outstanding hereunder and if a proposed supplemental indenture shall directly affect the
rights of the Holders of Securities of one or more, but less than all, of such series, then the
consent only of the Holders of a majority in aggregate principal amount of the Outstanding
Securities of all series so directly affected, considered as one class, shall be required; and
provided, further, that if the Securities of any series shall have been issued in more than one
Tranche and if the proposed supplemental indenture shall directly affect the rights of the Holders
of Securities of one or more, but less than all, of such Tranches, then the consent only of the
Holders of a majority in aggregate principal amount of the Outstanding Securities of all Tranches
so directly affected, considered as one class, shall be required; and provided, further, that no
such supplemental indenture shall, without the consent of the Holder of each Outstanding Security
of each series or Tranche so directly affected,

(a) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security (other than pursuant to the terms thereof), or reduce the
principal amount thereof or the rate of interest thereon (or the amount of any installment
of interest thereon) or change the method of calculating such rate or reduce any premium
payable upon the redemption thereof, or reduce the amount of the principal of a Discount
Security that would be due and payable upon a declaration of acceleration of the Maturity
thereof pursuant to Section 802, or change the coin or currency (or other property), in
which any Security or any premium or the interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the Stated Maturity
thereof (or, in the case of redemption, on or after the Redemption Date), or

(b) reduce the percentage in principal amount of the Outstanding Securities of any
series or any Tranche thereof, the consent of the Holders of which is required for any such
supplemental indenture, or the consent of the Holders of which is required for any waiver of
compliance with any provision of this Indenture or of any default hereunder and its
consequences, or reduce the requirements of Section 1304 for quorum or voting, or

(c) modify any of the provisions of this Section, Section 609 or Section 813 with
respect to the Securities of any series or any Tranche thereof, except to increase the
percentages in principal amount referred to in this Section or such other Sections or to
provide that other provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each Outstanding Security of each series or Tranche affected
thereby; provided, however, that this clause shall not be deemed to require the consent of
any Holder with respect to changes in the
references to “the Trustee” and concomitant changes in this Section, or the deletion of
this proviso, in accordance with the requirements of Sections 911(b) and 1201(g).

 

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A supplemental indenture which (x) changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of the Holders of, or which is
to remain in effect only so long as there shall be Outstanding, Securities of one or more
particular series, or one or more Tranches thereof, or (y) modifies the rights of the Holders of
Securities of such series or Tranches with respect to such covenant or other provision, shall be
deemed not to affect the rights under this Indenture of the Holders of Securities of any other
series or Tranche.

It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

Anything in this Indenture to the contrary notwithstanding, if the supplemental indenture or
Officer’s Certificate, as the case may be, establishing the Securities of any series or Tranche
shall provide that the Company may make certain specified additions, changes or eliminations to or
from the Indenture which shall be specified in such supplemental indenture or Officer’s
Certificate, (a) the Holders of Securities of such series or Tranche shall be deemed to have
consented to a supplemental indenture containing such additions, changes or eliminations to or from
the Indenture which shall be specified in such supplemental indenture or Officer’s Certificate, (b)
no Act of such Holders shall be required to evidence such consent and (c) such consent may be
counted in the determination of whether or not the Holders of the requisite principal amount of
Securities shall have consented to such supplemental indenture.

SECTION 1203. Execution of Supplemental Indentures.

In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 901) shall be fully protected in
relying upon, an Opinion of Counsel and an Officer’s Certificate stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall
not be obligated to, enter into any such supplemental indenture which adversely affects the
Trustee’s own rights, duties, immunities or liabilities under this Indenture or otherwise.

SECTION 1204. Effect of Supplemental Indentures.

Upon the execution of any supplemental indenture under this Article this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby. Any supplemental indenture permitted by this
Article may restate this Indenture in its entirety, and, upon the execution and delivery thereof,
any such restatement shall supersede this Indenture as theretofore in effect for all purposes.

SECTION 1205. Conformity With Trust Indenture Act.

Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

 

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SECTION 1206. Reference in Securities to Supplemental Indentures.

Securities of any series, or any Tranche thereof, authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Company shall so determine, new Securities of any series, or any
Tranche thereof, so modified as to conform, in the opinion of the Trustee and the Company, to any
such supplemental indenture may be prepared and executed by the Company, and authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series or Tranche.

SECTION 1207. Modification Without Supplemental Indenture.

To the extent, if any, that the terms of any particular series of Securities shall have been
established in or pursuant to an Officer’s Certificate as contemplated by Section 301, and not in
an indenture supplemental hereto, additions to, changes in or the elimination of any of such terms
may be effected by means of a supplemental Officer’s Certificate, as the case may be, delivered to,
and accepted by, the Trustee; provided, however, that such supplemental Officer’s Certificate shall
not be accepted by the Trustee or otherwise be effective unless all conditions set forth in this
Indenture which would be required to be satisfied if such additions, changes or elimination were
contained in a supplemental indenture shall have been appropriately satisfied. Upon the acceptance
thereof by the Trustee, any such supplemental Officer’s Certificate shall be deemed to be effective
and constitute a part of this Indenture and to be a “supplemental indenture” for purposes of
Section 1204 and 1206.

ARTICLE THIRTEEN

MEETINGS OF HOLDERS; ACTION WITHOUT MEETING

SECTION 1301. Purposes for Which Meetings May Be Called.

A meeting of Holders of Securities of one or more, or all, series, or any Tranche or Tranches
thereof, may be called at any time and from time to time pursuant to this Article to make, give or
take any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be made, given or taken by Holders of Securities of such series or
Tranches.

SECTION 1302. Call, Notice and Place of Meetings.

(a) The Trustee may at any time call a meeting of Holders of Securities of one or more, or
all, series, or any Tranche or Tranches thereof, for any purpose specified in Section 1301, to be
held at such time and at such place in the Borough of Manhattan, The City of New York, as the
Trustee shall determine, or, with the approval of the Company, at any other place. Notice of every
such meeting, setting forth the time and the place of such meeting and in general terms the action
proposed to be taken at such meeting, shall be given, in the manner provided in Section 106, not
less than 21 nor more than 180 days prior to the date fixed for the meeting.

(b) If the Trustee shall have been requested to call a meeting of the Holders of Securities of
one or more, or all, series, or any Tranche or Tranches thereof, by the Company or by the Holders
of 33% in aggregate principal amount of all of such series and Tranches, considered as one class,
for any purpose specified in Section 1301, by written request setting forth in reasonable detail
the action proposed to be taken at the meeting, and the Trustee shall not have given the notice of
such meeting within 21 days after receipt of such request or shall not thereafter proceed to cause
the meeting to be held as provided herein, then the Company or the Holders of Securities of such
series and Tranches in the
amount above specified, as the case may be, may determine the time and the place in the
Borough of Manhattan, The City of New York, or in such other place as shall be determined or
approved by the Company, for such meeting and may call such meeting for such purposes by giving
notice thereof as provided in subsection (a) of this Section.

 

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(c) Any meeting of Holders of Securities of one or more, or all, series, or any Tranche or
Tranches thereof, shall be valid without notice if the Holders of all Outstanding Securities of
such series or Tranches are present in person or by proxy and if representatives of the Company and
the Trustee are present, or if notice is waived in writing before or after the meeting by the
Holders of all Outstanding Securities of such series, or by such of them as are not present at the
meeting in person or by proxy, and by the Company and the Trustee.

SECTION 1303. Persons Entitled to Vote at Meetings.

To be entitled to vote at any meeting of Holders of Securities of one or more, or all, series,
or any Tranche or Tranches thereof, a Person shall be (a) a Holder of one or more Outstanding
Securities of such series or Tranches, or (b) a Person appointed by an instrument in writing as
proxy for a Holder or Holders of one or more Outstanding Securities of such series or Tranches by
such Holder or Holders. The only Persons who shall be entitled to attend any meeting of Holders of
Securities of any series or Tranche shall be the Persons entitled to vote at such meeting and their
counsel, any representatives of the Trustee and its counsel and any representatives of the Company
and its counsel.

SECTION 1304. Quorum; Action.

The Persons entitled to vote a majority in aggregate principal amount of the Outstanding
Securities of the series and Tranches with respect to which a meeting shall have been called as
hereinbefore provided, considered as one class, shall constitute a quorum for a meeting of Holders
of Securities of such series and Tranches; provided, however, that if any action is to be taken at
such meeting which this Indenture expressly provides may be taken by the Holders of a specified
percentage, which is less than a majority, in aggregate principal amount of the Outstanding
Securities of such series and Tranches, considered as one class, the Persons entitled to vote such
specified percentage in aggregate principal amount of the Outstanding Securities of such series and
Tranches, considered as one class, shall constitute a quorum. In the absence of a quorum within
one hour of the time appointed for any such meeting, the meeting shall, if convened at the request
of Holders of Securities of such series and Tranches, be dissolved. In any other case the meeting
may be adjourned for such period as may be determined by the chairman of the meeting prior to the
adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such
adjourned meeting may be further adjourned for such period as may be determined by the chairman of
the meeting prior to the adjournment of such adjourned meeting. Except as provided by Section
1305(e), notice of the reconvening of any meeting adjourned for more than 30 days shall be given as
provided in Section 1302(a) not less than ten days prior to the date on which the meeting is
scheduled to be reconvened. Notice of the reconvening of an adjourned meeting shall state
expressly the percentage, as provided above, in aggregate principal amount of the Outstanding
Securities of such series and Tranches which shall constitute a quorum.

Except as limited by Section 1202, any resolution presented to a meeting or adjourned meeting
duly reconvened at which a quorum is present as aforesaid may be adopted only by the affirmative
vote of the Holders of a majority in aggregate principal amount of the Outstanding Securities of
the series and Tranches with respect to which such meeting shall have been called, considered as
one class; provided, however, that, except as so limited, any resolution with respect to any action
which this Indenture expressly provides may be taken by the Holders of a specified percentage,
which is less than a majority, in aggregate principal amount of the Outstanding Securities of such
series and Tranches,
considered as one class, may be adopted at a meeting or an adjourned meeting duly reconvened
and at which a quorum is present as aforesaid by the affirmative vote of the Holders of such
specified percentage in aggregate principal amount of the Outstanding Securities of such series and
Tranches, considered as one class.

 

65

 

Any resolution passed or decision taken at any meeting of Holders of Securities duly held in
accordance with this Section shall be binding on all the Holders of Securities of the series and
Tranches with respect to which such meeting shall have been held, whether or not present or
represented at the meeting.

SECTION 1305. Attendance at Meetings; Determination of Voting Rights; Conduct and Adjournment of Meetings.

(a) Attendance at meetings of Holders of Securities may be in person or by proxy; and, to the
extent permitted by law, any such proxy shall remain in effect and be binding upon any future
Holder of the Securities with respect to which it was given unless and until specifically revoked
by the Holder or future Holder of such Securities before being voted.

(b) Notwithstanding any other provisions of this Indenture, the Trustee may make such
reasonable regulations as it may deem advisable for any meeting of Holders of Securities in regard
to proof of the holding of such Securities and of the appointment of proxies and in regard to the
appointment and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters concerning the conduct
of the meeting as it shall deem appropriate. Except as otherwise permitted or required by any such
regulations, the holding of Securities shall be proved in the manner specified in Section 104 and
the appointment of any proxy shall be proved in the manner specified in Section 104. Such
regulations may provide that written instruments appointing proxies, regular on their face, may be
presumed valid and genuine without the proof specified in Section 104 or other proof.

(c) The Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders as provided in
Section 1302(b), in which case the Company or the Holders of Securities of the series and Tranches
calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in aggregate principal amount of the Outstanding Securities of all
series and Tranches represented at the meeting, considered as one class.

(d) At any meeting each Holder or proxy shall be entitled to one vote for each $1,000
principal amount of Securities held or represented by him; provided, however, that no vote shall be
cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled
by the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no
right to vote, except as a Holder of a Security or proxy.

(e) Any meeting duly called pursuant to Section 1302 at which a quorum is present may be
adjourned from time to time by Persons entitled to vote a majority in aggregate principal amount of
the Outstanding Securities of all series and Tranches represented at the meeting, considered as one
class; and the meeting may be held as so adjourned without further notice.

 

66

 

SECTION 1306. Counting Votes and Recording Action of Meetings.

The vote upon any resolution submitted to any meeting of Holders shall be by written ballots
on which shall be subscribed the signatures of the Holders or of their representatives by proxy and
the aggregate principal amounts and serial numbers of the Outstanding Securities, of the series and
Tranches with respect to which the meeting shall have been called, held or represented by them.
The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all
votes cast at the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports of all votes cast at the meeting. A
record, in duplicate, of the proceedings of each meeting of Holders shall be prepared by the
secretary of the meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons
having knowledge of the facts setting forth a copy of the notice of the meeting and showing that
said notice was given as provided in Section 1302 and, if applicable, Section 1304. Each copy
shall be signed and verified by the affidavits of the permanent chairman and secretary of the
meeting and one such copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.
Any record so signed and verified shall be conclusive evidence of the matters therein stated.

SECTION 1307. Action Without Meeting.

In lieu of a vote of Holders at a meeting as hereinbefore contemplated in this Article, any
request, demand, authorization, direction, notice, consent, waiver or other action may be made,
given or taken by Holders by written instruments as provided in Section 104.

ARTICLE FOURTEEN

IMMUNITY OF MEMBERS, OFFICERS, DIRECTORS AND MANAGERS

SECTION 1401. Liability Limited.

No recourse shall be had for the payment of the aggregate principal of or premium, if any, or
interest, if any, on any Securities or any part thereof, or for any claim based thereon or
otherwise in respect thereof, or of the indebtedness represented thereby, or upon any obligation,
covenant or agreement under this Indenture, against any officer, member, manager or director, as
such, past, present or future of the Company or of any predecessor or successor of the Company
(either directly or through the Company or a predecessor or successor of the Company), whether by
virtue of any constitutional provision, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly agreed and understood that this Indenture
and all the Securities are solely obligations of the Company, and that no personal liability
whatsoever shall attach to, or be incurred by, any officer, member, manager or director, past,
present or future, of the Company or of any predecessor or successor of the Company, either
directly or indirectly through the Company or any predecessor or successor of the Company, because
of the indebtedness hereby authorized or under or by reason of any of the obligations, covenants or
agreements contained in this Indenture or in any of the Securities or to be implied herefrom or
therefrom, and that any such personal liability is hereby expressly waived and released as a
condition of, and as part of the consideration for, the execution of this Indenture and the
issuance of the Securities.

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.

 

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

	 	 	 	 	 
	 	PPL WEM HOLDINGS PLC

 	 
	 	By:  	 	 
	 	 	Name:  	 
	 	 	Title:  		 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

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