Document:

Form of 5.625% Subordinated Notes due 2017 No. 2

 Exhibit 4.2 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 NEITHER THIS NOTE NOR THE GUARANTEE INCLUDED HEREIN IS A BANK DEPOSIT OR INSURED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION OR BY ANY OTHER INSURER OR GOVERNMENTAL AGENCY. 
 THE INDENTURE, DATED AS OF DECEMBER 1,
1991, RELATING TO THIS SECURITY, HAS BEEN AMENDED BY A SUPPLEMENTAL INDENTURE, DATED AS OF FEBRUARY 15, 1993, AND FURTHER AMENDED BY A SECOND SUPPLEMENTAL INDENTURE, DATED AS OF FEBRUARY 15, 2000. 

 PNC FUNDING CORP 
 5.625% SUBORDINATED NOTES DUE 2017 
  

			
	REGISTERED	  	CUSIP: 6693476BB8
	No. 2	  	ISIN: US693476BB86
		  	$100,000,000

 PNC FUNDING CORP, a corporation duly organized and existing under the laws of Pennsylvania (herein
called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, the principal sum of One Hundred
Million Dollars on February 1, 2017, and to pay interest thereon from February 8, 2007, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually in arrears on August 1 and
February 1 in each year, commencing August 1, 2007, and at maturity, at the rate of 5.625% per annum, until the principal hereof is paid or made available for payment, and (to the extent that the payment of such interest shall be
legally enforceable) at the same rate per annum on any overdue principal and premium and on any overdue installment of interest. Interest shall accrue from February 8, 2007 to, but excluding the first Interest Payment Date and then from, and
including, the immediately preceding Interest Payment Date to which interest has been paid or duly provided for to, but excluding, the next Interest payment Date or the maturity date, as the case may be. Each of these periods is referred to as an
“interest period.” Interest will be computed on the basis of a 360-day year for the actual number of days elapsed. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, subject to certain
exceptions, will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be
July 15 or January 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. However, interest payable on the maturity date will be paid to the person to whom the principal will be payable. Any such
interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to holders of the Securities not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner acceptable to the Trustee and not inconsistent with the requirements of any securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture. 
 This Security is one of a duly authorized issue of securities of the Company (herein called the
“Securities” or “Notes”), issued and to be issued in one or more series under an Indenture, dated as of December 1, 1991, among the Company, PNC Financial Corp (also known as “PNC Bank Corp.” and now known as
“The PNC Financial Services Group, Inc.”) (the “Guarantor”) and The Bank of New York (as successor to JPMorgan Chase Bank and formerly known as The Chase Manhattan Bank and Chemical Bank, successor by merger to Manufacturers
Hanover Trust Company), as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture) as amended by a Supplemental Indenture dated as of February 15, 1993 by and among the Company, the
Guarantor and the Trustee, and as further amended by a Second Supplemental Indenture dated as of February 15, 2000 by and among the Company, the Guarantor and the Trustee (such Indenture as amended being herein called the
“Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders
of the Securities and of the terms upon 

 
which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated above, initially issued in the aggregate
principal amount of $100,000,000, and is subject to additional issuances as the Company may determine or as provided for in the Indenture. 
 The Securities of this series are not redeemable prior to their stated maturity and are not subject to any sinking fund. 
 The
Notes are not convertible into, or exchangeable for, equity securities of the Company or the Guaranty. If an Event of Default (as defined in the Indenture) with respect to the Securities shall occur and be continuing, the principal of the Securities
may be declared due and payable in the manner and with the effect provided in the Indenture. 
 Unless the certificate of authentication
hereon has been executed by the Trustee hereinafter referred to, by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 The indebtedness of the Company evidenced by the Securities of this series, including the principal thereof and interest thereon, is, to the extent and
in the manner set forth in the Indenture, subordinate and junior in right of payment to its obligations to holders of Senior Company Indebtedness (as defined in the Indenture) and subject to the obligations of the holders of the Securities to pay
over any Excess Proceeds to holders of Other Company Obligations, as provided in the Indenture, and shall rank pari passu in right of payment with each other and with all other unsecured subordinated indebtedness of the Company. Each
Holder of this Security, by the acceptance hereof, agrees to and shall be bound by such provisions of the Indenture and authorizes and directs the Trustee on his behalf to take such actions as may be necessary or appropriate to effectuate the
subordination so provided. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification
of the rights and obligations of the Company and the Guarantor and the rights of the holders of the Securities of any series under the Indenture at any time by the Company, the Guarantor and the Trustee with the consent of the holders of a majority
in principal amount of the outstanding Securities of all series (voting as one class) to be affected by such amendment or modification. The Indenture also contains provisions permitting the holders of specified percentages in principal amount of the
Outstanding Securities of any series, on behalf of the holders of all Securities of such series, to waive compliance by the Company or the Guarantor with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the holder of this Security shall be conclusive and binding upon such holder and upon all future holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 
 No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the
coin or currency, herein prescribed. 
 The Securities are issuable only in registered form without coupons in denominations of $1,000 and
any integral multiple thereof. This Security is a global security, represented by one or more permanent global certificates registered in the name of the nominee of The Depository Trust Company (each a “Global Note” and collectively, the
“Global Notes”). Accordingly, unless and until it is exchanged in whole or in part for individual certificates evidencing the Securities represented hereby, this Security may not be transferred except as a 

  

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whole by The Depositary Trust Company (the “Depositary”) to a nominee of such Depositary or by a nominee of such Depositary or by the Depositary or
any nominee to a successor Depositary or any nominee of such successor. Ownership of beneficial interests in this Security will be shown on, and the transfer of that ownership will be effected only through, records maintained by the applicable
Depositary or its nominee (with respect to interest of persons that have accounts with the Depositary (“Participants”) and the records of Participants (with respect to interests of persons other than Participants)). Beneficial interests in
Securities by persons that hold through Participants will be evidenced only by, and transfers of such beneficial interests with such Participants will be effected only through, records maintained by such Participants. The laws of some states require
that certain purchasers of securities take physical delivery of such securities in definitive form. Such limits and such laws may impair the ability to transfer beneficial interests in this Security. Except as provided below, owners of beneficial
interests in this Security will not be entitled to have any individual certificates and will not be considered the owners or Holders thereof under the Indenture. 
 Except in the limited circumstances set forth herein, Participants and owners of beneficial interests in the Global Notes will not be entitled to receive Securities in definitive form and will not be considered
holders of Securities. If the Depositary is at any time unwilling, unable or ineligible to continue as Depositary and a successor Depositary is not appointed by the Company within 90 days, or an event of default has occurred and is continuing, and
the Depositary requests the issuance of certificated notes, the Company will issue individual certificates evidencing the Securities represented hereby in definitive form in exchange for this Security in registered form to each person that the
Depositary identifies as the beneficial owner of the Securities represented by the Global Notes upon surrender by the Depositary of the Global Notes. In addition, the Company may at any time and in its sole discretion determine not to have any
Securities represented by one or more global securities and, in such event, will issue individual certificates evidencing Securities in definitive form in exchange for this Security. In any such instance, an owner of a beneficial interest in a
Security will be entitled to physical delivery in certificated form of Securities equal in principal amount to such beneficial interest and to have such Securities registered in its name. Securities so issued in certificated form will be issued in
denominations of $1,000 and any integral multiple thereof and will be issued in registered form only, without coupons. Neither the Company nor the principal paying agent will be liable for any delay by the Depositary, its nominee or any direct or
indirect participant in identifying the beneficial owners of the related Securities. The Company and the principal payment agent may conclusively rely on, and will be protected in relying on, instructions from the Depositary or its nominee for all
purposes, including with respect to the registration and delivery, and the respective principal amounts, of the Securities to be issued. 
 Except as provided herein, beneficial owners of Global Notes will not be entitled to receive physical delivery of Securities in definitive form and no Global Note will be exchangeable except for another Global Note of like denomination and
tenor to be registered in the name of the Depositary or its nominee. Accordingly, each person owning a beneficial interest in a Global Note must rely on the procedures of the Depositary and, if such person is not a Participant, on the procedures of
the Participant through which such person owns its interest, to exercise any rights of a holder under the Securities. 
 Beneficial interests
in the Global Notes will be represented through book-entry accounts of financial institutions acting on behalf of beneficial owners as direct and indirect participants in the Depositary. Investors may elect to hold interests in the Global Notes
through the Depositary, either directly if they are Participants of such system or indirectly through organizations that are Participants in such system. 
 The laws of some jurisdictions may require that purchasers of securities take physical delivery of those securities in definitive form. Accordingly, the ability to transfer 

  

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interests in the Securities represented by a Global Note to those persons may be limited. In addition, because the Depositary can act only on behalf of its
Participants, who in turn act on behalf of persons who hold interests through Participants, the ability of a person having an interest in Securities represented by a Global Note to pledge or transfer such interest to persons or entities that do not
participate in the Depositary’s system, or otherwise to take actions in respect of such interest, may be affected by the lack of a physical definitive security in respect of such interest. 
 Neither the Company, the Trustee, the principal paying agent nor any Security Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of Securities by the Depositary, or for maintaining, supervising or reviewing any records of the Depositary relating to the Securities. 
 The Bank of New York will act as the Company’s principal paying agent with respect to the Securities through its offices presently located at 4 New
York Plaza, New York, New York 10004. The Company may at any time rescind the designation of a paying agent, appoint a successor paying agent, or approve a change in the office through which any paying agent acts. Payments of interest and principal
may be made by wire-transfer in immediately available funds for Securities held in book-entry form or, at the Company’s option in the event the Securities are not represented by Global Notes, by check mailed to the address of the person
entitled to the payment as it appears in the Security register. Payment of principal will be made upon the surrender of the relevant Securities at the offices of the principal paying agent. 
 Notices to the holders of registered Securities will be mailed to them at their respective addresses in the register of the Securities and will be deemed
to have been given on the fourth weekday (being a day other than Saturday or Sunday) after the date of mailing. The Indenture contains provisions setting forth certain conditions to the institution of proceedings by the holders of Securities with
respect to the Indenture or for any remedy under the Indenture. 
 All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture. 
 — end of page — 
 [signatures appear on following page] 
  

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 IN WITNESS WHEREOF, PNC Funding Corp has caused this Note to be signed in its name by its Chairman of the
Board, President or any Executive or Senior Vice President, and by its Secretary or an Assistant Secretary, or by facsimiles of any of their signatures, and its corporate seal, or a facsimile thereof, to be hereto affixed. 
 Dated: February 8, 2007 
  

			
	PNC FUNDING CORP
		
	By	 	 /s/ Lisa M. Kovac

	Name:	 	Lisa M. Kovac
	Title:	 	Vice President

  

			
	 Attest:

		
		 	 /s/ George P. Long, III

	Name:	 	George P. Long, III
	Title:	 	Corporate Secretary

 [SEAL] 
  

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 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

			
	THE BANK OF NEW YORK
		 	as Trustee
		
	By	 	  

		 	Authorized officer

  

 -6-Employment Offer Letter

 Exhibit 10.1 
 May 7, 2007 
 Mr. Michael E. Thomas 
 46
Tidewater Lane 
 Yarmouth, Maine 04096 
 Dear Micky: 

I am pleased to confirm our offer of employment as Senior Vice President and Chief Financial Officer (“CFO”) of Environmental Power Corporation (“the
Company”), reporting to its Chief Executive Officer (“CEO”). Your related work experience, your professional accomplishments and the results of your interviews have confirmed to us that you should be a valuable addition to the
Company. 
 Your starting salary will be $9166.67 per bi-monthly pay period (the equivalent of $220,000 on an annualized basis), paid in accordance with the
Company’s customary payroll practices. As we agreed, your start date will be as mutually agreed (but not later than May 21, 2007). You will be an “at will” employee, and the Company may terminate your employment at any time and
for any reason or no reason. 
 The Company is expecting to move its corporate headquarters from
Portsmouth, NH to the Metro New York area. Pending the move, which is expected take place in the 3rd Quarter of 2007, you will be based at the
Company’s Portsmouth office. You will be responsible for all expenses associated with your travel to and from that office, meals, and any lodging of your choosing. 
 You shall be entitled to receive bonus compensation, to be awarded at such times and be in such amounts as shall be determined in the sole discretion of the CEO, consistent with the management-bonus plan of the
Company in effect from time to time for senior executives, if any. Your annual bonus target will be 35% and will be based on annual performance and financial targets to be developed by me. 
 You shall be entitled to participate in all benefit programs that the Company establishes and makes available to its senior executives generally from time to time,
including, but not limited to, medical and pension benefits, in accordance with the terms and conditions of such plans, as well as an automobile allowance of $750.00 per month. In addition, the Company shall reimburse you for annual premiums paid by
you for your personal long-term disability and term life insurance coverage, provided that the Company’s reimbursement obligation with respect to such coverage shall not exceed $3,500 per annum. You shall be entitled to four weeks paid
vacation per year, to be accrued and taken in accordance with the Company policy in effect from time to time. 
 Upon your move to the Metro New York area
you will be entitled to relocation expenses that will include home selling and buying expenses, moving expenses, and a temporary housing benefit, for a six-month period, of $1500 per month. 
 Effective on your first day of employment, you will be granted a stock appreciation right (“SAR”) under the Company’s 2005 Stock Incentive Plan or the
2006 Equity Incentive Plan, or a combination thereof (the “Plans”), pursuant to which you will be entitled to receive, after vesting and upon exercise, a payment in cash or in shares of the Company’s Common Stock, $0.01 par value per
share (“Common Stock”), or a combination of the foregoing (the form and composition of such payment to be at the election of the Company), equal to the increase, if any, in the fair market value at the close of business on the date of
grant of up to 100,000 shares of Common Stock (the “Measuring Shares”). The date of grant will be the first day of your employment. The SAR shall vest as follows: 
  

			
	 No. of Measuring Shares
	  	 Vest

	25,000	  	12 months following start date
	25,000	  	24 months following start date
	25,000	  	24 months following start date so long as the closing price of a share of the Company’s common stock equals or exceeds $11 on or before that date
	25,000	  	On achieving successful equity-raise and debt-raise associated with California initiatives

 The SAR will not represent a right to purchase the underlying Measuring Shares, and in no event may the number of shares
of Common Stock issued to you by the Company in payment upon any exercise of the SAR exceed the number of shares of Common Stock then available for issuance under the Plans. 
 In the event of a “Change-in-Control” (as defined below), the vesting of the SAR will accelerate, such that the SAR will be exercisable in full upon such Change-in-Control. A “Change-in-Control”
shall mean the sale of all or substantially all of the capital stock, assets or business of the Company, by merger, consolidation, sale of assets or otherwise (other than (i) than a merger or consolidation in which all or substantially all of
the individuals and entities who were beneficial owners of the outstanding voting stock of EPC, immediately prior to such transaction beneficially own, directly or indirectly, more than 50% of the outstanding securities entitled to vote generally in
the election of directors of the resulting, surviving or acquiring corporation in such transaction or (ii) a sale of any of the capital stock or assets of either of EPC’s subsidiaries involved in the waste coal business, EPC Corporation or
Buzzard Power Corporation). 
 You also shall be eligible to receive future awards under the equity compensation plans, if any, adopted by the Company from
time to time for which senior executives are generally eligible. The level of your participation in any such plan and the terms and conditions of such participation shall be determined in the sole discretion of the CEO. 
 You will be entitled a severance payment upon termination of employment as a result of job elimination or termination without cause and not as a result of discharge for
cause, retirement, disability or death or voluntary resignation. The severance payment will equal twelve months of base salary. The severance payment will be paid in a lump sum upon termination of your employment. If your employment is so
terminated, you will also be entitled to the continuation of then-existing medical benefits coverage for an initial twelve-month period (subject to your contributing toward premiums and/or making co-payments to the same extent that active employees
are required to contribute or pay), to be followed by your eligibility to continue such coverage, at your option and expense, for such remaining period of continuation as may be available under COBRA. For purposes of this paragraph,
“cause” shall mean any of the following: (i) your material breach of any agreement between you and the Company; (ii) demonstrated and material neglect of duties, or willful and continued failure or refusal to attempt to perform
the material duties of your position, in each case, following written notice from the CEO and a reasonable opportunity to cure of not less than twenty (20) days, or the failure to follow a reasonable and lawful instruction of the CEO following
written notice from the CEO and an opportunity to cure of at least twenty (20) days (if capable of cure); (iii) willful misconduct, violation of a material Company policy, dishonesty, self-dealing or fraud with regard to the Company;
(iv) conviction of, or plea of guilty or nolo contendere to, any felony; or (v) conviction of, or plea of guilty or nolo contendere to, any misdemeanor involving moral turpitude. 
 You will be required to maintain the confidentiality of proprietary and confidential Company information and will enter into a written agreement confirming this
obligation on the Company’s standard form of such agreement. 
 I look forward to your anticipated positive response to this letter and working with you
in the near future. If you wish to accept this offer of employment on the terms set forth in this letter, please sign one copy of this letter and return it to me. In the meantime, if I can be of any assistance, please let me know. 
 Sincerely yours, 
 /s/ Richard E. Kessel 
 Richard E. Kessel 
 President and Chief Executive Officer 
 Environmental Power Corporation 

 I accept the offer of employment on the terms set forth in this letter. 
  

							
	 /s/ Michael E. Thomas
	 		 	 5/10/07
	 	
	Michael E. Thomas	 		 	Date

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