Document:

exv4w3

Exhibit 4.3

EXECUTION COPY

PPL CAPITAL FUNDING, INC.,

Issuer

and

PPL CORPORATION,

Guarantor

to

THE BANK OF NEW YORK MELLON,

Trustee

      

Supplemental Indenture No. 2

Dated as of June 28, 2010

Supplemental to the Subordinated Indenture dated as of March 1, 2007

Establishing a series of Securities designated

4.625% Junior Subordinated Notes due 2018

limited in aggregate principal amount to $1,150,000,000

 

 

     SUPPLEMENTAL INDENTURE No. 2, dated as of June 28, 2010, among PPL CAPITAL FUNDING, INC., a
corporation duly organized and existing under the laws of the State of Delaware (herein called the
“Company”), PPL CORPORATION, a corporation duly organized and existing under the laws of the
Commonwealth of Pennsylvania (herein called the “Guarantor”), and THE BANK OF NEW YORK MELLON
(formerly known as The Bank of New York), a New York banking corporation, as Trustee (herein called
the “Trustee”), under the Subordinated Indenture dated as of March 1, 2007 (hereinafter called the
“Original Indenture”), this Supplemental Indenture No. 2 being supplemental thereto. The Original
Indenture, as supplemented by this Supplemental Indenture No. 2, and as may be further supplemented
or amended from time to time, is hereinafter sometimes collectively called the “Indenture.”

Recitals of the Company and the Guarantor

     The Original Indenture was authorized, executed and delivered by the Company and the Guarantor
to provide for the issuance by the Company from time to time of its Securities (such term and all
other capitalized terms used herein without definition having the meanings assigned to them in the
Original Indenture), to be issued in one or more series as contemplated therein, and for the
Guarantee by the Guarantor of the payment of the principal, premium, if any, and interest, if any,
on such Securities.

     As contemplated by Sections 301 and 1201(f) of the Original Indenture, the Company wishes to
establish a series of Securities to be designated “4.625% Junior Subordinated Notes due 2018” (the
“Notes”) to be limited in aggregate principal amount (except as contemplated in Section 301(b) and
the last paragraph of Section 301 of the Original Indenture) to $1,150,000,000.

     As contemplated by Sections 201 and 1415 of the Original Indenture, the Guarantor wishes to
establish the form and terms of the Guarantees to be endorsed on the Notes.

     The Company has duly authorized the execution and delivery of this Supplemental Indenture No.
2 to establish the Notes and has duly authorized the issuance of such Notes; the Guarantor has duly
authorized the execution and delivery of this Supplemental Indenture No. 2 and has duly authorized
its Guarantees of the Notes; and all acts necessary to make this Supplemental Indenture No. 2 a
valid agreement of the Company and the Guarantor, to make the Notes valid obligations of the
Company, and to make the Guarantees valid obligations of the Guarantor, have been performed.

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NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE No. 2 WITNESSETH:

     For and in consideration of the premises and of the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Notes, as follows:

ARTICLE 1

Definitions

     Section 1.01. Relation to Original Indenture. This Supplemental Indenture No. 2 constitutes
an integral part of the Original Indenture, and supplements and amends the Original Indenture
solely with respect to the Notes.

     Section 1.02. Definition of Terms. For all purposes of this Supplemental Indenture No. 2:

     (a) a term not defined herein that is defined in the Original Indenture has the same meaning
when used in this Supplemental Indenture No. 2;

     (b) the definition of any term in this Supplemental Indenture No. 2 that is also defined in
the Original Indenture shall supersede the definition of such term in the Original Indenture;

     (c) a term not defined herein or in the Original Indenture shall have the meaning set forth in
the Purchase Contract and Pledge Agreement;

     (d) a term defined anywhere in this Supplemental Indenture No. 2 has the same meaning
throughout;

     (e) the singular includes the plural and vice versa;

     (f) headings are for convenience of reference only and do not affect interpretation;

     (g) the following terms have the meanings given to them in this Section 1.02(g):

     “Applicable Ownership Interest in Notes” has the meaning set forth in the Purchase Contract
and Pledge Agreement.

     “Applicable Remarketing Period” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

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     “Beneficial Owner” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Blackout Period” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Business Day” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
shares issued by that Person.

     “Cash Settlement” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Collateral Account” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Collateral Agent” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Collateral Substitution” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Corporate Unit” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Coupon Rate” has the meaning set forth in Section 2.05.

     “Custodial Agent” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Deferral Period” means the period beginning on the Interest Payment Date for which the
Company has elected to defer the Interest Payment in accordance with Section 2.06 and ending on
the earlier of (a) the third anniversary of the Interest Payment Date on which the Interest Payment
was originally scheduled to be paid and (b) July 1, 2015.

     “Deferred Interest” has the meaning set forth in Section 2.06.

     “Depositary” means a clearing agency registered under Section 17A of the Securities and
Exchange Act (“Exchange Act”) that is designated to act as depositary for the Global Notes as
contemplated by Section 2.04.

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     “Depositary Participant” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Early Settlement” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Failed Final Remarketing” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Failed Optional Remarketing” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Failed Remarketing” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Final Remarketing” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Final Remarketing Date” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Final Remarketing Period” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Fundamental Change Early Settlement” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

     “Global Note” has the meaning set forth in Section 2.04.

     “Holder” means (a) with respect to the Corporate Units or the Treasury Units, such term as
defined in the Purchase Contract and Pledge Agreement and (b) with respect to the Notes, the Person
in whose name at the time a particular Note is registered on the books of the Trustee kept for that
purpose.

     “Increased Principal Amount” has the meaning set forth in Section 2.09.

     “Interest Payment” means, with respect to any Interest Payment Date, the interest payment on
the Notes due on such Interest Payment Date.

     “Interest Payment Date” has the meaning set forth in Section 2.05.

     “Interest Period” means, with respect to any Interest Payment Date, the period from and
including the immediately preceding Interest Payment Date (or if none, the date hereof) to, but
excluding, such Interest Payment Date.

     “New Notes” has the meaning set forth in Section 7.05(a).

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     “Optional Remarketing Settlement Date” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

     “Person” means a legal person, including any individual, corporation, estate, partnership,
joint venture, association, joint-stock company, limited liability company, trust, unincorporated
organization or government or any agency or political subdivision thereof or any other entity of
whatever nature.

     “Plan” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Pledged Applicable Ownership Interests in Notes” has the meaning set forth in the Purchase
Contract and Pledge Agreement.

     “Pledged Note” has the meaning set forth in Section 2.09.

     “Purchase Contract” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Purchase Contract Agent” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Purchase Contract and Pledge Agreement” means the Purchase Contract and Pledge Agreement,
dated as of June 28, 2010, among the Company, The Bank of New York Mellon, as Purchase Contract
Agent and attorney-in-fact for Holders of the Purchase Contracts, and The Bank of New York Mellon,
as Collateral Agent, Custodial Agent and Securities Intermediary, as amended from time to time.

     “Purchase Contract Settlement Date” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

     “Put Price” has the meaning set forth in Section 7.04(a).

     “Put Right” has the meaning set forth in Section 7.04(a).

     “Quotation Agent” means any primary United States government securities dealer in New York
City selected by the Company or the Guarantor.

     “Record Date” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Redemption” means the redemption of the Notes pursuant to the terms of Section 3.01.

     “Redemption Date” has the meaning set forth in Section 3.01.

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     “Redemption Price” means, for any Note the principal amount of such Note, plus accrued and
unpaid interest (including Deferred Interest and compounded interest thereon), if any, to but
excluding the Redemption Date.

     “Reduced Principal Amount” has the meaning set forth in Section 2.09.

     “Regular Record Date” means, with respect to any Interest Payment Date for the Notes, March
15, June 15, September 15 and December 15, as the case may be, immediately preceding the applicable
Interest Payment Date, regardless of whether such day is a Business Day; provided that if any of
the Notes are held by a securities depository in book-entry form, the Regular Record Date for such
Notes will be the close of business on the Business Day immediately preceding the applicable
Interest Payment Date.

     “Released Note” has the meaning set forth in Section 2.09.

     “Relevant Fraction” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Remarketed Notes” means, with respect to all Remarketings during any Applicable Remarketing
Period, the aggregate principal amount of Notes underlying the Pledged Applicable Ownership
Interests in Notes and the Separate Notes, if any, subject to Remarketing as identified to the
Remarketing Agent(s) by the Purchase Contract Agent and the Custodial Agent, respectively, in each
case pursuant to the terms of the Purchase Contract and Pledge Agreement.

     “Remarketing” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Remarketing Agent(s)” means any Remarketing Agent(s) appointed by the Company or the
Guarantor, pursuant to the Remarketing Agreement.

     “Remarketing Agreement” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Remarketing Date” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Remarketing Price” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Remarketing Settlement Date” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Reset Rate” has the meaning set forth in the Purchase Contract and Pledge Agreement.

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     “Senior Indenture” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Separate Notes” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Separate Notes Purchase Price” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Stated Maturity” has the meaning set forth in Section 2.02.

     “Subjected Note” has the meaning set forth in Section 2.09.

     “Successful Optional Remarketing” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

     “Successful Final Remarketing” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Successful Remarketing” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

     “Termination Event” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Tranche” means a group of Notes which (a) are issued under the Indenture (or the Senior
Indenture, if applicable) by the Company after a Successful Remarketing and (b) have the terms as
provided in this Supplemental Indenture No. 2.

     “Treasury Unit” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Treasury Portfolio Purchase Price” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

     “Treasury Portfolio” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     “Unit” has the meaning set forth in the Purchase Contract and Pledge Agreement.

     The terms “Company,” “Guarantor,” “Trustee,” “Indenture,” “Original Indenture,” “Securities”
and “Notes” shall have the respective meanings set forth in the recitals and the paragraph
preceding the recitals to this Supplemental Indenture No. 2.

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ARTICLE 2

General Terms and Conditions of the Notes

     Section 2.01. Designation and Principal Amount. There is hereby created a series of
Securities designated “4.625% Junior Subordinated Notes due 2018” and limited in aggregate
principal amount to $1,150,000,000, except as contemplated in Section 301(b) and the last paragraph
of Section 301 of the Original Indenture; provided, however, that the Company, without notice to or
consent of the Holders, may issue additional Notes and thereby increase such principal amount in
the future, on the same terms and conditions (except for the issue date and, if applicable, the
date from which interest accrues and the first Interest Payment Date) as the Notes. The forms and
terms of the Notes and the Guarantees shall be established in this Supplemental Indenture No. 2 as
contemplated by Section 301 of the Original Indenture.

     Section 2.02. Maturity. The date upon which the Notes shall become due and payable at final
maturity, together with any accrued and unpaid interest (other than Deferred Interest and
compounded interest thereon, which will be due and payable at the end of the Deferral Period
described in Section 2.06), is, initially, July 1, 2018; provided, however, such date may be
changed as set forth in Section 7.05 hereto (such applicable date, the “Stated Maturity”).

     Section 2.03. Form, Payment and Appointment. (a) Except as provided in Section 2.04, the
Notes shall be issued in fully registered, certificated form, without coupons bearing identical
terms. Notes corresponding to Applicable Ownership Interests in Notes that are components of
Corporate Units shall be registered in the name of the Purchase Contract Agent. Principal of and
interest on the Notes will be payable, the transfer of such Notes will be registrable, and such
Notes will be exchangeable for Notes of a like aggregate principal amount bearing identical terms
and provisions, at the office or agency of the Company maintained for such purpose in the Borough
of Manhattan, The City of New York, which shall initially be the Corporate Trust Office of the
Trustee in The City of New York, which is located at 101 Barclay Street, New York, New York, 10286;
provided, however, that, except as otherwise provided in the form of Note attached hereto as
Exhibit A, payment of interest may be made at the option of the Company by check mailed to the
Person entitled thereto at such address as shall appear in the Security Register, and provided,
further, that the Company, in its discretion may change the Place of Payment of the Notes, may
remove the Paying Agent and may appoint one or more additional Paying Agents. Payments with
respect to any Global Note will be made by wire transfer to the Depositary. The Paying Agent and
the Security Registrar for the Notes shall initially be the Trustee.

     (b) The Notes shall be issuable in minimum denominations of $1,000 and integral multiples of
$1,000 in excess thereof; provided, however, that upon

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the release by the Collateral Agent of Notes underlying the Pledged Applicable Ownership
Interests in Notes in accordance with Section 3.15 of the Purchase Contract and Pledge Agreement
(other than any release of Notes underlying Pledged Applicable Ownership Interests in Notes in
connection with (i) the creation of Treasury Units by Collateral Substitution, (ii) a Successful
Remarketing, (iii) Fundamental Change Early Settlement, (iv) Early Settlement with separate cash
or (v) Cash Settlement, in accordance with Section 3.13, Section 5.02, Section 5.05(b)(ii), Section
5.08 or Section 5.03 of the Purchase Contract and Pledge Agreement, as the case may be), the Notes
shall be issuable in denominations of $50 and integral multiples of $50 in excess thereof.

     Section 2.04. Global Notes. Notes corresponding to Applicable Ownership Interests in Notes
that are no longer a component of the Corporate Units and are released from the Collateral Account
will be issued in permanent global form (a “Global Note”), and if issued as one or more Global
Notes, the Depositary shall be The Depository Trust Company or such other depositary as any officer
of the Company may from time to time designate. On the date on which the Notes registered in the
name of the Purchase Contract Agent pursuant to Section 2.03 are issued, the Company shall also
issue one or more Global Notes, registered in the name of the Depositary or its nominee, each
having a zero principal balance. Upon the creation of Treasury Units, or the re-creation of
Corporate Units or in any other case where the Collateral Agent releases Notes underlying the
Pledged Applicable Ownership Interests in Notes, an appropriate annotation shall be made on the
Schedule of Increases or Decreases in Note on the Global Notes held by the Depositary and on the
Pledged Note held by the Collateral Agent. Notes represented by the Global Notes will be
exchangeable for Notes in certificated form only (x) if the Depositary (A) has notified the Company
that it is unwilling or unable to continue as depository for the Global Notes or (B) has ceased to
be a clearing agency registered under the Exchange Act and, in either case, a successor depository
is not appointed by the Company within 90 days after such notice or cessation or (y) following the
request of any Holder or Beneficial Owner of Corporate Units or Treasury Units seeking to
exercise or enforce its rights under such Corporate Units or Treasury Units or (z) upon re-creation
of Corporate Units; provided, subject to Section 2.03, that the Notes in certificated form so
issued in exchange for the Global Notes shall be in denominations of $1,000 or any whole multiple
of $1,000 above that amount and shall be of like aggregate principal amount and tenor as the
portion of the Global Note to be exchanged. Except as provided above, owners of beneficial
interest in a Global Note will not be entitled to receive physical delivery of Notes in
certificated form and will not be considered the Holders thereof for any purpose under the
Indenture. Unless and until such Global Note is exchanged for Notes in certificated form, Global
Notes may be transferred, in whole but not in part, and any payments on the Notes shall be made,
only to the Depositary or a nominee of the Depositary, or to a successor Depositary selected or
approved by the

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Company or to a nominee of such successor Depositary. Any Global Note that is exchangeable
pursuant to clause (x) of the fourth sentence of this Section 2.04 shall be exchangeable for Notes
in certificated form registered in such names as the Depositary shall direct.

     Section 2.05. Interest. (a) Subject to Section 2.06 of this Supplemental Indenture No. 2
and Section 307 of the Original Indenture, and Section 7.05 hereof, interest on the Notes shall be
payable quarterly in arrears on January 1, April 1, July 1, October 1 of each year (each, an
“Interest Payment Date”), commencing October 1, 2010, and at Maturity (whether at the Stated
Maturity, upon Redemption, or otherwise), to the Person in whose name the relevant Notes are
registered at the close of business on the Regular Record Date for such Interest Payment Date
except that interest payable at the Stated Maturity or Redemption shall be paid to the Person to
whom principal is payable.

     (b) The Notes will bear interest initially at the rate of 4.625% per year (the “Coupon Rate”)
from and including June 28, 2010 to, but excluding, the date the principal amount thereof is paid
or made available for payment, or in the event of a Successful Remarketing, the Remarketing
Settlement Date. In the event of a Successful Remarketing of the Notes, the interest rate
applicable to each Tranche of Notes (regardless of whether such Notes are Remarketed Notes) may be
reset by the Remarketing Agent(s) to the Reset Rate with effect from the Remarketing Settlement
Date, as set forth in Section 7.03. If the interest rate is so reset, the Notes in such Tranche
will bear interest at the applicable Reset Rate from, and including, the Remarketing Settlement
Date to, but excluding, the date the principal amount thereof is paid or made available for
payment. Following a Successful Remarketing, if any Tranche of the Remarketed Notes are fixed-rate
notes, interest on such Tranche of Notes will be payable on a semi-annual basis. If there is not a
Successful Remarketing of the Notes, the Coupon Rate will not be reset and the Notes shall continue
to bear interest at the Coupon Rate. The Notes shall bear interest, to the extent permitted by law,
on any overdue principal and interest at the Coupon Rate, unless a Successful Remarketing shall
have occurred, in which case interest on such amounts with respect to a Tranche of Notes shall
accrue at the Reset Rate for such Tranche from and including the Remarketing Settlement Date,
compounded on each applicable Interest Payment Date for such Tranche thereafter.

     Section 2.06. Deferral of Interest. (a) Prior to July 1, 2013, in accordance with Section
2.06(c) below and subject to the restrictions set forth in Section 8.01, the Company may elect at
one or more times to defer payment of interest on the Notes (such unpaid interest, the “Deferred
Interest”) for one or more consecutive Interest Periods; provided that each deferred Interest
Payment may only be deferred until the earlier of (i) the third anniversary of the Interest Payment
Date on which the original Interest Payment was scheduled to be paid and (ii) July 1, 2015. If all
Deferred Interest has been paid (including compounded interest

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thereon), the Company may again defer Interest Payments subject to and in accordance with the
terms of this Section 2.06. For the avoidance of doubt, in all cases, including in the event of a
Failed Remarketing, the Company shall have no right to defer the payment of interest on the Notes
beyond July 1, 2015.

     (b) Deferred Interest on the Notes will bear interest at the Coupon Rate and subject to
applicable law, and such interest will be compounded on each Interest Payment Date unless paid on
the applicable Interest Payment Date, in each case in accordance with the second sentence of
Section 2.06(a) above.

     (c) In the event that the Company elects to defer any Interest Payment, the Company shall
notify the Trustee and the Holders in writing of such election at least one Business Day prior to
the Regular Record Date for the Interest Payment Date on which the Company intends to begin a
Deferral Period; provided, however, that the Company’s or the Guarantor’s failure to pay the
interest owed on a particular Interest Payment Date shall also constitute the commencement of a
Deferral Period, unless such interest is paid within five (5) Business Days after such Interest
Payment Date, whether or not the Company provides a notice of deferral.

     (d) The Company or the Guarantor may pay Deferred Interest (including compounded interest
thereon) in cash on any scheduled Interest Payment Date occurring on or prior to July 1, 2015.
Deferred Interest paid on any Interest Payment Date shall be payable to the Person in whose name
the Notes are registered at the close of business on the Regular Record Date next preceding such
Interest Payment Date.

     (e) In connection with any Successful Final Remarketing of the Notes, all accrued and unpaid
Deferred Interest (including compounded interest thereon) shall be paid to the Holders of Notes
(whether or not such Notes were remarketed in such Remarketing) on the Purchase Contract Settlement
Date in cash.

     (f) The Company shall not be permitted to defer the interest payable on the Purchase Contract
Settlement Date with respect to any Notes that are successfully remarketed during the Final
Remarketing Period.

     (g) In the event there is any Deferred Interest outstanding, the Company may not elect to
conduct an Optional Remarketing.

     Section 2.07. Satisfaction and Discharge. The Notes shall not be subject to satisfaction
and discharge under Section 701 of the Original Indenture.

     Section 2.08. No Sinking Fund or Repayment at Option of the Holder. The Notes are not
entitled to the benefit of any sinking fund, and Article Five of the Original Indenture shall not
apply to the Notes.

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     Section 2.09. Increase and Decrease in Pledged Note. In the event that any Notes underlying
Pledged Applicable Ownership Interests in Notes are to be released from the Pledge following a
Termination Event, Collateral Substitution, Cash Settlement, Successful Remarketing, Early
Settlement or Fundamental Change Early Settlement pursuant to the Purchase Contract and Pledge
Agreement (a “Released Note”), such release and delivery shall be evidenced by an endorsement by
the Collateral Agent on the Note held by the Collateral Agent (the “Pledged Note”) reflecting a
reduction in the principal amount of such Pledged Note equal in amount (the “Reduced Principal
Amount”) to the principal amount of the Released Note. The Collateral Agent shall confirm any such
Reduced Principal Amount by telecopying or otherwise delivering a photocopy of such endorsement
made on the Pledged Note evidencing such Reduced Principal Amount to the Trustee at the telecopier
number or address of the Trustee provided for notices to the Trustee in the Purchase Contract and
Pledge Agreement (or at such other telecopier or address as the Trustee shall provide to the
Collateral Agent). Upon receipt of such confirmation, the Trustee shall instruct the Custodial
Agent to increase the principal amount of a Global Note held by the Custodial Agent in an amount
equal to the Reduced Principal Amount by an endorsement made by the Custodial Agent on such Global
Note to reflect such increase. In the event that a Note is transferred to the Collateral Agent
pursuant to Section 3.14 of the Purchase Contract and Pledge Agreement (a “Subjected Note”) in
connection with the re-creation of Corporate Units, such transfer shall be evidenced by an
endorsement by the Collateral Agent on the Pledged Note held by the Collateral Agent reflecting an
increase in the principal amount of such Pledged Note equal in amount (the “Increased Principal
Amount”) to the principal amount of such Subjected Note. The Collateral Agent shall confirm any
such Increased Principal Amount by telecopying or otherwise delivering a photocopy of such
endorsement made on the Pledged Note evidencing such Increased Principal Amount to the Trustee at
the telecopier number or address of the Trustee provided for notices to the Trustee in the Purchase
Contract and Pledge Agreement (or at such other telecopier or address as the Trustee shall provide
to the Collateral Agent). Upon receipt of such confirmation, the Trustee shall instruct the
Custodial Agent to decrease the principal amount of the Global Note held by the Custodial Agent in
an amount equal to the Increased Principal Amount by an endorsement made by the Custodial Agent on
such Global Note to reflect such decrease.

ARTICLE 3

Redemption of the Notes

     Section 3.01. Optional Redemption. The Company may, at its option, redeem the Notes, in
whole but not in part, on a date not earlier than July 1, 2015, at a price per Note equal to the
Redemption Price, payable on the date of

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redemption (such date, the “Redemption Date”). The Company may at any time irrevocably waive
the right to redeem the Notes for any specified period (including the remaining term of the Notes).
The Company shall not redeem the Notes, if the Notes have been accelerated and such acceleration
has not been rescinded or unless all accrued and unpaid interest has been paid in full on all
Outstanding Notes for all Interest Periods terminating on or prior to the Redemption Date.

     Section 3.02. Effect of Redemption. Unless the Company defaults in the payment of the
Redemption Price, on and after the Redemption Date, once notice of Redemption is given and funds
are irrevocably deposited, in each case, in accordance with Sections 404 and 603 of the Original
Indenture, (a) interest shall cease to accrue on the Notes immediately prior to the close of
business on the Redemption Date, (b) the Notes shall no longer be Outstanding and (c) all rights of
the Holders in respect of the Notes shall terminate and lapse (other than the right to receive any
amount owed in connection with a Redemption but without interest on such amount).

     Section 3.03. Redemption Procedures. Notice of Redemption shall be given as provided for in
accordance with Section 404 of the Original Indenture.

     Section 3.04. No Other Redemption. Except as set forth in this Article 3 and Section
7.05, the Notes shall not be redeemable by the Company prior to the Stated Maturity.

ARTICLE 4

Form of Note and Form of Guarantee

     Section 4.01. Form of Note and Form of Guarantee. The Notes and the Guarantees and the
Trustee’s certificate of authentication to be endorsed on the Notes are to be substantially in the
forms attached as Exhibit A hereto, with such changes therein as the officers of the Company
executing the Notes (by manual or facsimile signature) may approve, such approval to be
conclusively evidenced by their execution thereof.

ARTICLE 5

Original Issue of Notes

     Section 5.01. Original Issue of Notes. Notes in the aggregate principal amount of
$1,150,000,000 may from time to time, upon execution of this Supplemental Indenture No. 2, be
executed by the Company and delivered to the Trustee for authentication, and the Trustee shall
thereupon authenticate and deliver said Notes to or upon the order of the Company as set forth in a
Company

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Order pursuant to Section 303 of the Original Indenture without any further action by the
Company (other than as required by the Original Indenture).

ARTICLE 6

Modification of Indenture

     Section 6.01. Modification of Indenture with Consent of Holders of Notes. As set forth in
Section 1202 of the Original Indenture (and except as otherwise provided herein), with the consent
of the Holders of at least a majority in the aggregate principal amount of Securities of all
outstanding series (except as otherwise provided in said Section 1202), the Company, the Guarantor
and the Trustee may from time to time and at any time enter into an indenture or indentures
supplemental hereto or to the Original Indenture for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Original Indenture or this
Supplemental Indenture No. 2 or of modifying in any manner the rights of the Holders of the
Securities; provided, however, that if the Notes have been remarketed in more than one Tranche and
if the proposed supplemental indenture directly affects the rights of the Holders of only one
Tranche, then such supplemental indenture shall only require the consent of the Holders of a
majority in the aggregate principal amount of the Notes of such Tranche, considered as one class;
provided, however, that, in addition to Sections 1202(a), (b) and (c) of the Original Indenture, no
amendment or modification may without the consent of the Holders of each Note directly affected
thereby: (i) cause a “significant modification” of the Notes within the meaning of Treasury
Regulation § 1.1001-3, (ii) modify the Put Right of Holders of the Notes upon a Failed Remarketing
in a manner adverse to the Holders or (iii) modify the Remarketing provisions of the Notes in a
manner adverse to the Holders, it being understood that the modification of the ranking provisions
(along with the related modification of the covenants and the Events of Default), elimination of
the interest deferral provisions, any reset of the Coupon Rate or modification of the Stated
Maturity or redemption provisions of the Notes in connection with a Successful Remarketing is
permitted under the Indenture and does not require any modification to the provisions of the
Indenture.

     Section 6.02. Modification of Indenture without Consent of Holders of Notes. In addition to
subsections (a) through (k) of Section 1201 of the Original Indenture, without the consent of any
Holder of a Note, the Company, the Guarantor and the Trustee may amend the Indenture to conform the
provisions of the Indenture (insofar as they relate to the Notes) to the description of the Notes
contained in the preliminary prospectus supplement dated June 21, 2010 (as supplemented by the
related term sheet dated June 22, 2010) relating to the Units under the sections entitled
“Description of the Equity Units,” “Description of the

14

 

Purchase Contracts,” “Certain Provisions of the Purchase Contract and Pledge Agreement” and
“Description of the Notes.”

ARTICLE 7

Remarketing

     Section 7.01. Remarketing Procedures. (a) In the case of an Optional Remarketing, unless a
Termination Event has occurred prior to the Optional Remarketing Period, or in the case of a Final
Remarketing, unless a Successful Optional Remarketing or Termination Event has occurred prior to
the Final Remarketing Period, the Company and the Guarantor shall engage the Remarketing Agent(s)
pursuant to the Remarketing Agreement for the Remarketing of the Notes into two Tranches as set
forth under Section 7.05(a). The Company shall, no later than (i) in the case of an Optional
Remarketing, fifteen days prior to the first day of the Optional Remarketing Period or (ii) in the
case of a Final Remarketing, the third Business Day prior to the first day of the Final Remarketing
Period, request that the Depositary or its nominee notify the Beneficial Owners or Depositary
Participants holding Separate Notes, Corporate Units and Treasury Units, and shall provide a copy
of such request to the Collateral Agent and the Purchase Contract Agent, in the case of an Optional
Remarketing, of the Company’s intent to attempt an Optional Remarketing in the Applicable
Remarketing Period, and in all cases, of the proposed Remarketing Dates and the procedures to be
followed in each Remarketing, including the procedures to be followed by Holders of Separate Notes
to participate in a Remarketing, the applicable procedures for Holders of Corporate Units to create
Treasury Units or Holders of Treasury Units to recreate Corporate Units, as the case may be, the
applicable procedures for Holders of Corporate Units to effect an Early Settlement and, in the case
of a Final Remarketing, applicable procedures to effect a Cash Settlement and the applicable
procedures that must be followed by a Holder of Separate Notes if such Holder wishes to exercise
its Put Right or by a Holder if such Holder elects not to exercise its Put Right.

     (b) At any time prior to a Remarketing, other than during a Blackout Period, each Holder of
Separate Notes may elect to have Separate Notes held by such Holder remarketed in any Remarketing.
A Holder making such an election must, pursuant to the Purchase Contract and Pledge Agreement,
notify the Custodial Agent and deliver such Separate Notes to the Custodial Agent in accordance
with the provisions set forth in the Purchase Contract and Pledge Agreement. Any such notice and
delivery may not be conditioned upon the level at which the Reset Rate is established in the
Remarketing. Any such notice and delivery may be withdrawn by notifying the Custodial Agent on or
prior to 5:00 p.m., New York City time, on the Business Day immediately preceding the first day of
the Applicable Remarketing Period in accordance with the provisions set

15

 

forth in the Purchase Contract and Pledge Agreement. Any such notice and delivery not
withdrawn by such time will be irrevocable with respect to each Remarketing to occur during the
Applicable Remarketing Period. Pursuant to Section 5.02 of the Purchase Contract and Pledge
Agreement, by 11:00 a.m., New York City time, in the case of an Optional Remarketing, or promptly
after 5:00 p.m., New York City time, in the case of a Final Remarketing, on the Business Day
immediately preceding the first day of the Applicable Remarketing Period, the Custodial Agent,
based on the notices and deliveries received by it prior to such time, shall notify the Remarketing
Agent of the aggregate principal amount of Separate Notes tendered for Remarketing. Pursuant and
subject to Section 5.02 of the Purchase Contract and Pledge Agreement, Notes that underlie
Applicable Ownership Interests in Notes included in Corporate Units will be deemed tendered for
Remarketing and will be remarketed in accordance with the terms of the Remarketing Agreement and
the Purchase Contract and Pledge Agreement.

     (c) The right of each Holder of Remarketed Notes to have such Notes remarketed and sold on any
Remarketing Date shall be subject to the conditions that (i)(A) the Remarketing Agent conducts any
Optional Remarketing or (B) in the case of a Final Remarketing, that no Successful Optional
Remarketing has occurred pursuant to the terms of the Remarketing Agreement, (ii) a Termination
Event has not occurred prior to such Remarketing Date, (iii) the Remarketing Agent(s) are able to
find a purchaser or purchasers for Remarketed Notes at the Remarketing Price based on the Reset
Rate and (iv) the purchaser or purchasers of the Remarketed Notes deliver the purchase price
therefor to the Remarketing Agent as and when required.

     (d) Neither the Trustee, the Company, the Guarantor nor the Remarketing Agent(s) shall be
obligated in any case to provide funds to make payment upon tender of Notes for remarketing.

     Section 7.02. Remarketing. (a) Unless a Termination Event has occurred prior to such date,
if the Company elects to conduct an Optional Remarketing during an Optional Remarketing Period
selected by the Company pursuant to the Purchase Contract and Pledge Agreement, the Remarketing
Agent shall use its reasonable efforts to remarket the Remarketed Notes at the applicable
Remarketing Price.

     (b) In the case there is no Successful Optional Remarketing during the Optional Remarketing
Period, either because the Remarketing Agent is unable to remarket the Notes at the applicable
Remarketing Price or because a condition precedent to the Remarketing has not been satisfied, and
unless a Termination Event has occurred prior to such date, during the Final Remarketing Period,
the Remarketing Agent shall use its reasonable efforts to remarket the Remarketed Notes at the
applicable Remarketing Price. The Remarketing on any Remarketing Date will be considered
successful if the resulting proceeds are at least equal to

16

 

the applicable Remarketing Price. The Company has the right to postpone the Final Remarketing
in the Company’s absolute discretion on any day prior to the last five Business Days of the Final
Remarketing Period.

     Section 7.03. Reset Rate. (a) In connection with each Remarketing, the Remarketing Agent
shall determine the Reset Rate in consultation with the Company and the Guarantor (rounded to the
nearest one-thousandth of one percent (0.00001) per annum).

     (b) Anything herein to the contrary notwithstanding, the Reset Rate shall in no event exceed
the maximum rate permitted by applicable law.

     (c) In the event of a Successful Remarketing, the Coupon Rate shall be reset on the
Remarketing Settlement Date to the Reset Rate as determined by the Remarketing Agent under the
Remarketing Agreement, and the Company shall (i) notify the Trustee by an Officers’ Certificate
delivered to the Trustee and (ii) request the Depositary to notify its Depositary Participants
holding Notes, in each case, of the maturity date, Reset Rate, Interest Payment Dates, ranking and
any other modified terms established for the Notes during the Remarketing on the Business Day
following the date of the Successful Remarketing. Upon a Successful Remarketing, the Reset Rate
for each Tranche shall apply to all Outstanding Notes of such Tranche, whether or not the Holders
of all Outstanding Notes of such Tranche participated in such Remarketing.

     (d) If a reset occurs with respect to a Tranche of the Notes pursuant to a Successful Optional
Remarketing, the Reset Rate of such Tranche shall be the interest rate determined by the
Remarketing Agent(s) as the rate the Notes of such Tranche should bear in order for the aggregate
principal amount of such Tranche of Notes to have an aggregate market value on the Optional
Remarketing Date of at least 100% of the Relevant Fraction of the aggregate of the Treasury
Portfolio Purchase Price plus the Separate Notes Purchase Price, if any.

     (e) If a reset occurs with respect to a Tranche of the Notes pursuant to a Successful Final
Remarketing, the Reset Rate shall be the interest rate determined by the Remarketing Agent(s) as
the rate the Notes of such Tranche should bear in order for the Remarketing proceeds to equal at
least 100% of the principal amount of the Notes of such Tranche being remarketed.

     (f) In the event of a Failed Final Remarketing, or if no Applicable Ownership Interests in
Notes are included in Corporate Units and none of the Holders of the Separate Notes elect to have
their Notes remarketed in any Remarketing, the applicable interest rate on the Notes will not be
reset and will continue to be the Coupon Rate.

17

 

     (g) If there is a Failed Remarketing, the Company shall cause a notice of the unsuccessful
Remarketing to be published before 9:00 a.m., New York City time on the Business Day following the
Applicable Remarketing Period. This notice shall be validly published by making a timely release to
any appropriate news agency, including Bloomberg Business News and the Dow Jones News Service.

     Section 7.04. Put Right. (a) Subject to Section 7.04(b) below, if there has not been a
Successful Remarketing prior to the last day of the Final Remarketing Period, Holders of Notes
will, subject to this Section 7.04, have the right (the “Put Right”) to require the Company to
purchase such Notes for cash on the Purchase Contract Settlement Date, at a price per Note to be
purchased equal to the principal amount of the applicable Note, plus accrued and unpaid interest
thereon (including all accrued and unpaid Deferred Interest, if any, and compounded interest
thereon) to, but excluding, the Purchase Contract Settlement Date (the “Put Price”).

     (b) The Put Right of Holders of Applicable Ownership Interests in Notes that are part of
Corporate Units will be deemed to be automatically exercised, in whole but not in part, in
accordance with Section 5.02 of the Purchase Contract and Pledge Agreement (unless any such Holder
has settled the related Purchase Contracts with separate cash on or prior to the Purchase Contract
Settlement Date pursuant to the Purchase Contract and Pledge Agreement), in which case the Company
is not required to provide notice of Redemption or follow any of the other Redemption procedures
outlined under Article 3.

     (c) The Put Right of a Holder of a Separate Note shall only be exercisable upon delivery of a
notice substantially in the form attached as Exhibit B hereto, together with such Holder’s Separate
Notes, to the Trustee by such Holder at or prior to 11:00 a.m., New York City time, on the second
Business Day immediately preceding the Purchase Contract Settlement Date. Such Put Right for a
Holder of a Separate Note may be exercised with respect to all or a portion of such Holder’s
Separate Notes (so long as such portion is an integral multiple of $1,000 principal amount). On or
prior to the Purchase Contract Settlement Date, the Company shall deposit with the Trustee
immediately available funds in an amount sufficient to pay, on the Purchase Contract Settlement
Date, the aggregate Put Price of all Separate Notes with respect to which a Holder has exercised a
Put Right. In exchange for any Separate Notes surrendered pursuant to the Put Right, the Trustee
shall then distribute such amount to the Holders of such Separate Notes.

     (d) Notes purchased pursuant to the Put Right shall be cancelled by the Trustee.

18

 

     Section 7.05. Modification of Terms in Connection with a Successful Remarketing.

     (a) The Notes to be remarketed in an Optional Remarketing or a Final Remarketing shall be
divided into two Tranches, such that neither Tranche will have an aggregate principal amount of
less than the lesser of $300 million and 50% of the aggregate principal amount of the Notes to be
remarketed. One Tranche shall mature on or about the third anniversary of the Remarketing
Settlement Date and the other shall mature on or about the fifth anniversary of the Remarketing
Settlement Date. The interest deferral provisions of the Notes shall not apply to the Notes
remarketed in a Remarketing. The subordination provisions of the Notes and the Guarantee shall not
apply to the Notes remarketed in a Final Remarketing, unless the Company makes an irrevocable
election otherwise, which shall apply to both Tranches, by notice to the Trustee at any time on or
prior to December 28, 2010. Unless the Company so elects, the Notes remarketed in the Final
Remarketing shall be the senior, unsecured obligations of the Company guaranteed on a senior,
unsecured basis by the Guarantor and governed by the Senior Indenture and a supplemental indenture
reflecting any terms of the Notes that the Company and the Guarantor elect to modify (consistent
with Section 1202 of the Original Indenture and Article 6 of this Supplemental Indenture No.2)
without the consent of any Holders of Notes in connection with the Remarketing. The Company shall
allocate the Notes whose Holders elect not to participate in any Remarketing, without any
requirement for the consent of such Holders, into these two Tranches, such that neither Tranche
immediately after the related Remarketing Settlement Date will have an aggregate principal amount
of less than the lesser of $300 million and 50% of the aggregate principal amount of the Notes then
Outstanding. On the Business Day following the Optional Remarketing Date or the Final Remarketing
Date, as applicable, the Company shall notify Holders of Separate Notes who decided not to
participate in the Remarketing how the Company allocated the Notes of such Holders between the two
Tranches. Such Holders shall deliver their Separate Notes to the Trustee for cancellation and shall
receive in exchange therefor notes issued under the Indenture or Senior Indenture, as applicable,
having the terms related to the Tranche allocated to such Holders (the “New Notes”). Until such
Holders have delivered their Separate Notes as aforesaid and received the applicable New Notes in
exchange therefor, the Separate Notes held by such Holders shall be deemed to evidence the New
Notes of the applicable Tranche.

     (b) In addition to the modification of the ranking provisions (along with the related
modification of the covenants and the Events of Default), elimination of the interest deferral
provisions, modification of the Stated Maturity and any reset of the Coupon Rate in connection with
a Successful Remarketing of a Tranche of Notes, without the consent of any of the Holders of the
Notes, in consultation with the Remarketing Agent and the Guarantor, the Company may (but will not
be required to) make any of the following elections:

19

 

     (i) extend the earliest Redemption Date on which the Company may redeem the Notes of
such Tranche from July 1, 2015 to a later date or to eliminate the redemption provisions
of the Notes of such Tranche altogether;

     (ii) calculate interest on the Notes of such Tranche on a fixed or floating rate
basis, and if such Tranche of Notes shall accrue interest on a floating rate basis, to
establish new Interest Payment Dates for such Tranche on a quarterly basis or if such
Tranche of Notes shall accrue interest on a fixed rate basis, to establish new Interest
Payment Dates for such Tranche on a semi-annual basis.

     (c) Any such elections described above shall be made by irrevocable notice to the Trustee set
forth in an Officers’ Certificate delivered to the Trustee at least 21 Business Days prior to the
first day of the Applicable Remarketing Period (or by such later date as shall be acceptable to the
Trustee), who in turn, will notify the Holders of the Corporate Units and Separate Notes at least
16 Business Days prior to the first day of any Applicable Remarketing Period, and will be effective
on the Remarketing Settlement Date and will apply to all of the Notes, regardless of whether the
Notes were included in the Successful Remarketing.

ARTICLE 8

Certain Restrictions

     Section 8.01. Dividend and Other Payment Stoppage During Interest Deferral and Under Certain
Other Circumstances. (a) The Guarantor hereby agrees that until the earlier of (i) the Purchase
Contract Settlement Date for the Notes and (ii) the Optional Remarketing Settlement Date, if: (x)
an Event of Default has occurred and is continuing; (y) the Company has given notice of its
election to defer Interest Payments but the related Deferral Period has not yet commenced; or (z) a
Deferral Period is continuing with respect to the Notes, the Guarantor shall not:

     (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or
make a liquidation payment with respect to, any shares of the Guarantor’s Capital Stock;

     (ii) make any payment of principal of, or interest or premium, if any, on, or repay,
purchase or redeem any of the Guarantor’s debt securities that upon the Guarantor’s
liquidation rank pari passu with, or junior in interest to, the Guarantee (as of their
date of issuance and not taking into account any modifications to the terms of the Notes
in connection with a Successful Remarketing); or

20

 

     (iii) make any guarantee payments regarding any guarantee by the Guarantor of
securities of any of its subsidiaries (other than the Company) if the guarantee ranks pari
passu with, or junior in interest to, the Notes (as of their date of issuance and not
taking into account any modifications to the terms of the Notes in connection with a
Successful Remarketing).

     (b) Notwithstanding the provisions of Section 8.01(a), the restrictions contemplated by
Section 8.01(a) shall not apply to:

     (i) any repurchase, redemption or other acquisition of shares of the Guarantor’s
Capital Stock in connection with:

     (A) any employment contract, Plan or other similar arrangement offered by
the Guarantor or any of its subsidiaries with or for the benefit of one or more
employees, officers, directors, consultants or independent contracts; or

     (B) a dividend reinvestment or stock purchase plan;

     (ii) any exchange, redemption or conversion of any class or series of the Guarantor’s
Capital Stock (or any Capital Stock of any of its subsidiaries) for or to any class or
series of the Guarantor’s Capital Stock or of any class or series of the Guarantor’s
indebtedness for or to any class or series of the Guarantor’s Capital Stock;

     (iii) any purchase, or payment in cash in lieu of, fractional interests in shares of
the Guarantor’s Capital Stock pursuant to the conversion or exchange provisions of such
Capital Stock or the securities being converted or exchanged;

     (iv) any declaration of a dividend in connection with the issuance of rights, stock
or other property under any rights plan, or the redemption or repurchase of rights
pursuant thereto;

     (v) any dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of the warrants, options or other
rights is the same stock as that on which the dividend is being paid or ranks pari passu
with or junior to such stock; or

     (vi) any payment of current interest or deferred interest on pari passu securities
during a Deferral Period that is made pro rata to the amounts due on pari passu securities
and the Notes.

21

 

ARTICLE 9

Tax Treatment

     Section 9.01. Tax Treatment. The Company and the Guarantor agree, and by acceptance of a
Corporate Unit or a Separate Note, each Holder (or beneficial owner) will be deemed to have agreed
(unless otherwise required by any taxing authority) for U.S. federal, state and local income tax
purposes (a) to treat each beneficial owner of a Corporate Unit as the owner of the applicable
interests in the Collateral, including the Notes underlying the Applicable Ownership Interest in
Notes constituting a part of such Corporate Unit (b) to treat the Notes as indebtedness for all tax
purposes, (c) with respect to Holders who purchase Corporate Units upon issuance, to allocate, as
of the date hereof, 100% of a Holder’s purchase price for a Corporate Unit to the Applicable
Ownership Interests in Notes and 0% to each Purchase Contract, which will establish each Holder’s
initial tax basis in each Purchase Contract as $0.00 and each Holder’s initial tax basis in each
Applicable Ownership Interest in Notes as $50.00, and (d) in all events, not to take any position
for U.S. federal, state or local income tax purposes that is inconsistent with or contrary to the
above covenants.

ARTICLE 10

Miscellaneous

     Section 10.01. Ratification of Indenture. The Original Indenture, as supplemented by this
Supplemental Indenture No. 2, is in all respects ratified, approved and confirmed, and this
Supplemental Indenture No. 2 shall be deemed part of the Original Indenture in the manner and to
the extent herein and therein provided and shall together constitute one and the same instrument.

     Section 10.02. Trustee Not Responsible for Recitals. The recitals herein contained are made
by the Company and the Guarantor and not by the Trustee, and the Trustee assumes no responsibility
for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency
of this Supplemental Indenture No. 2.

     Section 10.03. New York Law to Govern. THIS SUPPLEMENTAL INDENTURE NO. 2 AND THE NOTES
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND FOR ALL
PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE WITHOUT REGARD TO CONFLICTS
OF LAW PRINCIPLES THEREOF, EXCEPT TO THE EXTENT THE TRUST INDENTURE ACT SHALL BE APPLICABLE.

     Section 10.04. Waiver of Trial by Jury. Each of the Company, the Guarantor and the Trustee
irrevocably waives, to the fullest extent permitted by

22

 

applicable law, any and all right to trial by jury in any legal proceeding arising out of or
relating to this Supplemental Indenture No. 2 or the transactions contemplated hereby.

     Section 10.05. Separability. In case any one or more of the provisions contained in this
Supplemental Indenture No. 2 or in the Notes shall for any reason be held to be invalid, illegal or
unenforceable in any respect, then, to the extent permitted by law, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Supplemental Indenture No. 2 or of
the Notes, but this Supplemental Indenture No. 2 and the Notes shall be construed as if such
invalid or illegal or unenforceable provision had never been contained herein or therein.

     Section 10.06. Counterparts. This Supplemental Indenture No. 2 may be executed in any
number of counterparts each of which shall be an original, but such counterparts shall together
constitute but one and the same instrument.

23

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 2 to be
duly executed, and their respective corporate seals to be hereunto affixed and attested, all as of
the day and year first written above.

	 	 	 	 	 
	 	PPL CAPITAL FUNDING, INC.

 	 
	 	By:  	/s/ James E. Abel
 	 
	 	 	Name:  	James E. Abel 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	 	PPL CORPORATION

 	 
	 	By:  	/s/ James E. Abel
 	 
	 	 	Name:  	James E. Abel 	 
	 	 	Title:  	Vice President-Finance and
Treasurer 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By:  	/s/ Christopher Curti
 	 
	 	 	Name:  	Christopher Curti 	 
	 	 	Title:  	Vice President 	 
	 

 

 

EXHIBIT A

FORM OF NOTE

[FOR INCLUSION IN GLOBAL NOTE ONLY] [THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE
OF THE DEPOSITORY TRUST COMPANY. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST
COMPANY TO A NOMINEE OF THE DEPOSITORY TRUST COMPANY OR BY A NOMINEE OF THE DEPOSITORY TRUST
COMPANY TO THE DEPOSITORY TRUST COMPANY OR ANOTHER NOMINEE OF THE DEPOSITORY TRUST COMPANY.]

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

A-1

 

PPL CAPITAL FUNDING, INC.

4.625% Junior Subordinated Note due 2018

Fully and Unconditionally Guaranteed as to Payment of Principal

and any Interest and Premium by

PPL CORPORATION

	 	 	 

	Original Issue Date:
	 	June 28, 2010
	 
	 	 
	Stated Maturity:
	 	July 1, 2018
	 
	 	 
	Initial Coupon Rate:
	 	4.625%
	 
	 	 
	Interest Payment Dates:
	 	January 1, April 1, July 1, October 1

This Note is not a Discount Security within

the meaning of the within-mentioned Indenture

CUSIP No.: 69351T AB2

ISIN NUMBER: US69351TAB26

	 	 	 	 	 

	No.___
	 		$ [                                      ]	 

     PPL Capital Funding, Inc., a corporation duly organized and existing under the laws of the
State of Delaware (hereinafter called the “Company,” which term includes any successor corporation
under the Indenture hereinafter referred to below), for value received, hereby promise to pay to [                 
], or registered assigns, the principal sum [of $                  ]* [as set forth
in the Schedule of Increases or Decreases in Note attached hereto, which amount shall not exceed
$1,150,000,000]**, on July 1, 2018 (such date is hereinafter referred to as the “Stated
Maturity”), and to pay interest on said principal sum from the Original Issue Date specified above
or from the most recent Interest Payment Date to which interest has been paid or duly provided for,
subject to deferral at the Company’s election as set forth in Section 2.06 of the Supplemental
Indenture No. 2 (defined herein), quarterly in arrears on January 1, April 1, July 1

 

			
	*	 	Insert for certificated Notes.
	 
	**	 	Insert in Global Notes and pledged Note.

A-2

 

and October 1 of each year (each, an “Interest Payment Date”), commencing October 1, 2010, at
the rate of 4.625% per annum (the “Initial Coupon Rate”). On and after the Purchase Contract
Settlement Date or, if earlier, the Optional Remarketing Settlement Date, interest on this Note
will be payable at the relevant Reset Rate or, if the interest rate has not been reset, at the
Initial Coupon Rate of 4.625% per year. The Reset Rate, if any, shall be established pursuant to
the terms of the Indenture (as such term is defined on the reverse of this Note) and the
Remarketing Agreement.

     The interest so payable, and paid or duly provided for, on any Interest Payment Date shall, as
provided in the Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the “Regular Record Date” for
such interest installment, which shall be the close of business on the fifteenth calendar day
(whether or not a Business Day (as hereinafter defined)) of the month immediately preceding such
Interest Payment Date, provided that if this Note is held by a securities depository in book-entry
form, the Regular Record Date will be the close of business on the Business Day immediately
preceding such Interest Payment Date. Notwithstanding the foregoing, interest payable at Maturity
shall be paid to the Person to whom principal shall be paid. Interest shall be calculated on the
basis of a 360- day year of twelve 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 the period.

     Payment of the principal of and premium, if any, on this Note and interest hereon due at
Maturity shall be made upon presentation of this Note at the corporate trust office of The Bank of
New York Mellon in New York, New York or at such other office or agency as may be designated for
such purpose by the Company from time to time. Payment of interest, if any, on this Note (other
than interest due at Maturity) shall be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register, except that (a) if such Person shall
be a securities depositary, such payment may be made by such other means in lieu of check as shall
be agreed upon by the Company, the Trustee or other Paying Agent and such Person and (b) if such
Person is a Holder of $10,000,000 or more in aggregate principal amount of Notes such payment may
be made in immediately available funds by wire transfer to such account as may have been designated
in writing by the Person entitled thereto as set forth herein in time for the Paying Agent to make
such payments in accordance with its normal procedures. Any such designation for wire transfer
purposes shall be made by filing the appropriate information with the Trustee at its Corporate
Trust Office in The City of New York not less than fifteen calendar days prior to the applicable
payment date and, unless revoked by written notice to the Trustee received on or prior to the
Regular Record Date immediately preceding the applicable Interest Payment Date, shall remain in
effect with respect to any further interest payments (other than interest payments due at Maturity)
with respect to this Note payable to such Holder. Payment of the principal of and premium, if any,
and interest, if any, on this Note, as aforesaid, shall be made in such coin or currency of the
United States of America as at the time of payment shall be legal tender for the payment of public
and private debts.

     All capitalized terms used herein that are defined in the Indenture (as defined on the reverse
hereof) have the meaning set forth therein. In the event of any inconsistency between the

A-3

 

provisions of this Note and the provisions of the Indenture, the provisions of the Indenture shall
govern and control.

A-4

 

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

	 	 	 	 	 
	 	PPL CAPITAL FUNDING, INC.

 	 
	 	By:  	 	 
	 	 	Treasurer 	 
	 	 	 	 
	 
	 	[SEAL]

Attested:

 	 
	 	By:  	
 	 
	 	 	Assistant Secretary 	 
	 	 	 	 

A-5

 

	 	 	 	 	 

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 MELLON,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-6

 

	 	 	 	 	 

REVERSE OF NOTE

     This Note is one of a duly authorized issue of securities of the Company (herein called the
“Notes”), issued and issuable in one or more series under a Subordinated Indenture (the “Original
Indenture”), dated as of March 1, 2007, among the Company, PPL Corporation (herein called the
“Guarantor,” which term includes any successor under the Indenture) and The Bank of New York Mellon
(formerly known as The Bank of New York), as Trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), as amended and supplemented by the
Supplemental Indenture No. 2, dated as of June 28, 2010, among the Company, the Guarantor and the
Trustee (the “Supplemental Indenture No. 2” and, together with the Original Indenture, the
“Indenture”), to which Indenture reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the Guarantor, 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 Note is one of the series designated on the face hereof, limited
in aggregate principal amount to $1,150,000,000; provided, however, that the Company, without
notice to or consent of the Holders, may issue additional Notes and thereby increase such principal
amount in the future, on the same terms and conditions (except for issue date, public offering
price and, if applicable, the date from which interest accrues and the first Interest Payment Date)
and with the same CUSIP number as the Notes.

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

     The Company may redeem the Notes pursuant to Article 3 of the Supplemental Indenture No. 2.

     Pursuant to Section 7.04 of the Supplemental Indenture No. 2, if there has not been a
Successful Remarketing prior to the end of the Final Remarketing Period, Holders of Notes will have
the right to require the Company to purchase such Notes on the Purchase Contract Settlement Date.

     The Notes are not entitled to the benefit of any sinking fund.

     If an Event of Default with respect to the Notes shall occur and be continuing, the principal
of the Notes may be declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the entry into one or more
supplemental indentures for purposes of amending or modifying the rights and obligations of the
Company and the rights of the Holders of the Notes under the Indenture or the Supplemental
Indenture No. 2 at any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time outstanding of all series affected
(except as otherwise provided in Section 1202 of the Original Indenture). The Indenture also
contains provisions permitting the Holders of specified percentages in principal

A-7

 

amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive
compliance by the Company with certain provisions of the Indenture and certain past defaults under
the Indenture and the consequences thereof. Any such consent or waiver by the Holder of this Note
shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of
any Note 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 Note.

     Notes are issuable only in registered form without coupons in denominations of $1,000 and any
integral multiple thereof, except as provided in Section 2.03 of the Supplemental Indenture No. 2.

     Except as provided in Section 2.04 of the Supplemental Indenture No. 2, the Notes shall be
issued in fully registered, certificated form, bearing identical terms. Principal of and interest
on the Notes will be payable, the transfer of such Notes will be registrable, and such Notes will
be exchangeable for Notes of a like aggregate principal amount bearing identical terms and
provisions, at the office or agency of the Company maintained for such purpose in the Borough of
Manhattan, The City of New York.

     The indebtedness evidenced by this Note is, to the extent provided in the Indenture,
subordinated and subject in right of payment to the prior payment in full of all Senior
Indebtedness of the Company, and this Note is issued subject to the provisions of the Indenture
with respect thereto. Each Holder of this Note, by accepting the same, (a) agrees to and shall be
bound by such provisions, (b) authorizes and directs the Trustee on his behalf to take such action
as may be necessary or appropriate to acknowledge or effectuate the subordination so provided and
(c) appoints the Trustee his attorney-in-fact for any and all such purposes. Each Holder hereof, by
his acceptance hereof, hereby waives all notice of the acceptance of the subordination provisions
contained herein and in the Indenture by each holder of Senior Indebtedness of the Company, whether
now outstanding or hereafter incurred, and waives reliance by each such Holder upon said
provisions.

     No service charge shall be made for any registration of transfer or exchange of the Notes, but
the Company may require payment from the Holder of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith.

     Pursuant to Section 2.04 of the Supplemental Indenture No. 2, Notes corresponding to
Applicable Ownership Interests in Notes that are no longer a component of the Corporate Units and
are released from the Collateral Account will be issued as Global Notes. Except as otherwise
provided in the Indenture, or except upon recreation of Corporate Units, Notes represented by
Global Notes will not be exchangeable for, and will not otherwise be issuable as, Notes in
certificated form. Unless and until such Global Notes are exchanged for Notes in certificated
form, Global Notes may be transferred, in whole but not in part, and any payments on the Notes
shall be made, only to the Depositary or a nominee of the Depositary, or to a successor Depositary
selected or approved by the Company or to a nominee of such successor Depositary.

A-8

 

     Subject to Section 307 of the Original Indenture, prior to due presentation of this Note for
registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may
treat the Person in whose name this Note is registered as the owner hereof for all purposes,
whether or not this Note is overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

     By acceptance of this Note or a beneficial interest in this Note, each Holder hereof and any
person acquiring a beneficial interest herein, agrees that for United States federal, state and
local tax purposes it is intended that this Note constitutes indebtedness.

     Unless the certificate of authentication hereon has been executed by the Trustee or an
Authenticating Agent by manual signature, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

     THIS NOTE SHALL BE GOVERNED BY AND DEEMED TO BE A CONTRACT UNDER, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF SAID STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

A-9

 

ASSIGNMENT

     FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

      

     [please insert social security or other identifying number of assignee]

      

     [please print or typewrite name and address of assignee]

     the within Note of PPL CAPITAL FUNDING, INC. and does hereby irrevocably constitute and
appoint      , Attorney, to transfer said Note on the books of the within-mentioned
Company, with full power of substitution in the premises.

     Dated:                                         

     Notice: The signature to this assignment must correspond with the name as written upon the
face of the Note in every particular without alteration or enlargement or any change whatsoever.

A-10

 

SCHEDULE OF INCREASES OR DECREASES IN NOTE1

     The
initial principal amount of this Note is $[             ]. The
following increases or decreases in a part of this Note have been made:

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	Principal amount of	 	 
	 	 	decrease in	 	increase in	 	this Note	 	Signature of
	 	 	principal	 	principal	 	following	 	authorized signatory
	 	 	amount of this	 	amount of this	 	such decrease	 	of Trustee or
	Date	 	Note	 	Note	 	(or increase)	 	Custodial Agent
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

 

			
	1	 	Insert in Global Notes and Notes that are
part of Corporate Units

A-11

 

GUARANTEE

     PPL Corporation, a corporation organized under the laws of the Commonwealth of Pennsylvania
(the “Guarantor”, which term includes any successor under the Indenture (the “Indenture”) referred
to in the Note upon which this Guarantee is endorsed), for value received, hereby fully and
unconditionally guarantees to the Holder of the Note upon which this Guarantee is endorsed the due
and punctual payment of the principal of, and premium, if any, and interest, if any, on such Note
when and as the same shall become due and payable, whether at the Stated Maturity, by declaration
of acceleration, call for redemption, or otherwise, in accordance with the terms of such Note and
of the Indenture. In case of the failure of PPL Capital Funding, Inc., a corporation organized
under the laws of the State of Delaware (the “Company”, which term includes any successor under the
Indenture), punctually to make any such payment (subject to the Company’s right to defer the
interest payments as provided in the Note upon which this Guarantee is endorsed), the Guarantor
hereby agrees to cause such payment to be made punctually when and as the same shall become due and
payable, whether at the Stated Maturity or by declaration of acceleration, call for redemption or
otherwise, and as if such payment were made by the Company.

     The Guarantor hereby agrees that its obligations hereunder shall be absolute and unconditional
irrespective of, and shall be unaffected by, any invalidity, irregularity or unenforceability of
such Note or the Indenture, any failure to enforce the provisions of such Note or the Indenture, or
any waiver, modification or indulgence granted to the Company with respect thereto, by the Holder
of such Note or the Trustee or any other circumstance that may otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor; provided, however, that notwithstanding
the foregoing, no such waiver, modification or indulgence shall, without the consent of the
Guarantor, increase the principal amount of such Note, or increase the interest rate thereon, or
change any redemption provisions thereof (including any change to increase any premium payable upon
redemption thereof) or change the Stated Maturity thereof.

     The Guarantor hereby waives the benefits of diligence, presentment, demand for payment, any
requirement that the Trustee or the Holder of such Note exhaust any right or take any action
against the Company or any other Person, filing of claims with a court in the event of insolvency
or bankruptcy of the Company, any right to require a proceeding first against the Company, protest
or notice with respect to such Note or the indebtedness evidenced thereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged in respect of such Note except
by complete performance of the obligations contained in such Note and in this Guarantee. This
Guarantee shall constitute a guaranty of payment and not of collection. The Guarantor hereby
agrees that, in the event of a default in payment of principal, or premium, if any, or interest, if
any, on such

A-12

 

Note, whether at its Stated Maturity, by declaration of acceleration, call for
redemption, or otherwise, legal proceedings may be instituted by the Trustee on
behalf of, or by, the Holder of such Note, subject to the terms and conditions set forth in
the Indenture, directly against the Guarantor to enforce this Guarantee without first proceeding
against the Company.

     The obligations of the Guarantor hereunder with respect to such Note shall be continuing and
irrevocable until the date upon which the entire principal of, premium, if any, and interest, if
any, on such Note has been, or has been deemed pursuant to the provisions of Article Seven of the
Indenture to have been, paid in full or otherwise discharged.

     The obligations evidenced by this Guarantee are, to the extent provided in the Indenture,
subordinated and subject in right of payment to the prior payment in full of all Senior
Indebtedness (as defined in the Indenture) of the Guarantor, and this Guarantee is issued subject
to the provisions of the Indenture with respect thereto. Each Holder of a Note upon which this
Guarantee is endorsed, by accepting the same, (a) agrees to and shall be bound by such provisions,
(b) authorizes and directs the Trustee on his behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination so provided and (c) appoints the Trustee
his attorney-in-fact for any and all such purposes. Each Holder hereof, by his acceptance hereof,
hereby waives all notice of the acceptance of the subordination provisions contained herein and in
the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter incurred,
and waives reliance by each such Holder upon said provisions.

     The Guarantor shall be subrogated to all rights of the Holder of such Note upon which this
Guarantee is endorsed against the Company in respect of any amounts paid by the Guarantor on
account of such Note pursuant to the provisions of this Guarantee or the Indenture; provided,
however, that the Guarantor shall not be entitled to enforce or to receive any payments arising out
of, or based upon, such right of subrogation until the principal of, and premium, if any, and
interest, if any, on all Notes issued under the Indenture shall have been paid in full.

     This Guarantee shall remain in full force and effect and continue notwithstanding any petition
filed by or against the Company for liquidation or reorganization, the Company becoming insolvent
or making an assignment for the benefit of creditors or a receiver or trustee being appointed for
all or any significant part of the Company’s assets, and shall, to the fullest extent permitted by
law, continue to be effective or reinstated, as the case may be, if at any time payment of the Note
upon which this Guarantee is endorsed is, pursuant to applicable law, rescinded or reduced in
amount, or must otherwise be restored or returned by the Holder of such Note, whether as a
“voidable preference,” “fraudulent transfer,” or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part thereof, is

A-13

 

rescinded,
reduced, restored or returned on such Note, such Note shall, to the fullest extent permitted by
law, be reinstated and deemed paid only by such amount paid and not so rescinded, reduced, restored
or returned.

     This Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication of the Note upon which this Guarantee is endorsed shall have been manually executed
by or on behalf of the Trustee under the Indenture.

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

     This Guarantee shall be deemed to be a contract made under the laws of the State of New York,
and for all purposes shall be governed by and construed in accordance with the laws of the State of
New York.

     IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be executed as of the date
first written above.

	 	 	 	 	 
	 	PPL CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 

A-14

 

	 	 	 	 	 

EXHIBIT B

PUT NOTICE

	 	 	 

	TO:

	 	PPL CAPITAL FUNDING, INC.
	 

	 	THE BANK OF NEW YORK MELLON

Please refer to the Indenture, dated as of March 1, 2007, among PPL Capital Funding, Inc. (the
“Company”), PPL Corporation and The Bank of New York Mellon, as Trustee, as amended and
supplemented by the Supplemental Indenture No. 2, dated as of June 28, 2010, among the Company, PPL
Corporation and the Trustee (such Indenture as amended and supplemented, the “Indenture”).
Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the
Indenture.

The undersigned registered Holder of the Note designated below, which is being delivered to the
Trustee herewith, hereby requests and instructs the Company to purchase such Note or the portion
thereof specified below (so long as such portion is in a principal amount of $1,000 or an integral
multiple thereof), in accordance with the terms of the Indenture, at the price of 100% of the
principal amount of such Note (or portion thereof), plus accrued and unpaid interest thereon
(including all accrued and unpaid Deferred Interest, if any, and compounded interest thereon), but
excluding, the Purchase Contract Settlement Date. The Note (or portion thereof) shall be purchased
by the Company as of the Purchase Contract Settlement Date pursuant to the terms and conditions
specified in the Indenture.

Dated:

Signature:

NOTICE: The above signature of the Holder hereof must correspond with the name as written upon the
face of the Note in every particular without alteration or enlargement or any change whatever.

Signature Guarantee:

Note Certificate Number (if applicable):

Principal Amount:

Portion to be purchased if other than the Principal Amount set forth above:

Social Security or Other Taxpayer Identification Number:

DTC Account Number (if applicable):

Name of Account Party (if applicable):

B-1

 

PAYMENT INSTRUCTIONS: The purchase price of the Note should be paid by check in the name of the
person(s) set forth below and mailed to the address set forth below.

	 	 	 	 	 

	Name(s)

	 	 

 
	 	 
	 

	 	 

(Please Print)
	 	 
	 
	 	 	 	 
	Address

	 	 

	 	 
	 

	 	 

(Please Print)
	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	(Zip Code)
	 	 
	 
	 	 	 	 
	 	 	 
	(Tax Identification or Social Security Number)	 	 

B-2exv4w30

Exhibit 4.30

Amending Agreement — Parent Guarantee

Dated 23 June 2009

Asbestos Injuries Compensation Fund Limited in its capacity as trustee for the Charitable Fund (“AICF”)

The State of New South Wales (“NSW Government”)

James Hardie Industries N.V. (“JHINV”)

Mallesons Stephen Jaques

Level 61

Governor Phillip Tower

1 Farrer Place

Sydney NSW 2000

Australia

T +61 2 9296 2000

F +61 2 9296 3999

DX 113 Sydney

www.mallesons.com

Ref: 02-5501-6101

 

 

Amending Agreement — Parent Guarantee

Contents

	 	 	 	 	 	 	 

	Details	 	 	1	 
	General terms	 	 	2	 
	1

	 	Interpretation
	 	 	2	 
	2

	 	Confirmations and acknowledgement
	 	 	2	 
	2.1

	 	Confirmation in relation to definition of “Guarantor”
	 	 	2	 
	2.2

	 	JHI Confirmation
	 	 	2	 
	2.3

	 	Conflict
	 	 	3	 
	2.4

	 	Consideration
	 	 	3	 
	3

	 	Amendments
	 	 	3	 
	3.1

	 	Parent Guarantee
	 	 	3	 
	3.2

	 	Irrevocable Power of Attorney
	 	 	3	 
	4

	 	Representations and warranties by JHI
	 	 	3	 
	5

	 	Costs
	 	 	4	 
	6

	 	General
	 	 	4	 
	7

	 	Counterparts
	 	 	4	 
	8

	 	Governing law
	 	 	5	 
	Schedule 1 — Irish Registration Date Amendments	 	 	6	 
	Schedule 2 — Conformed copy of the Parent Guarantee
incorporating the Irish
Registration Date Amendments	 	 	9	 
	Schedule 3 — Third Irrevocable Power of Attorney	 	 	10	 
	Signing page	 	 	11	 

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	i

 

 

Amending Agreement — Parent Guarantee

Details

	 	 	 	 	 

	Parties	 	AICF, NSW Government and JHINV
	 
	 	 	 	 
	AICF

	 	Name
	 	Asbestos Injuries
Compensation Fund Limited a
company limited by guarantee
incorporated under the laws of
the State of New South Wales,
Australia, in its capacity as
trustee for the Charitable Fund
established under the Amended
and Restated Trust Deed dated 14
December 2006 between it as
trustee and JHINV
	 
	 	 	 	 
	 

	 	ACN
	 	117 363 461
	 
	 	 	 	 
	 

	 	Address
	 	Level 7, 233 Castlereagh
Street Sydney New South Wales,
2000
	 
	 	 	 	 
	NSW 

Government

	 	Name
	 	The State of New South Wales
	 
	 	 	 	 
	 

	 	Address
	 	c/- Department of Premier
and Cabinet, Level 39, Governor
Macquarie Tower, 1 Farrer Place,
Sydney, NSW, 2000
	 
	 	 	 	 
	JHINV

	 	Name
	 	James Hardie Industries
N.V. a limited liability company
incorporated in The Netherlands
	 
	 	 	 	 
	 

	 	ARBN
	 	097 829 895
	 
	 	 	 	 
	 

	 	Address
	 	Atrium, 8th
floor, Strawinskylaan 3077,
1077ZX Amsterdam, The
Netherlands (with its Australian
registered office at Level 3, 22
Pitt Street, Sydney in the State
of New South Wales)
	 
	 	 	 	 
	Recitals	 	AICF, NSW Government and JHINV are parties to the
Parent Guarantee and wish to amend the Parent Guarantee
on the terms set out in this agreement.
	 
	 	 	 	 
	Date of
Amending Deed

	 	June 2009	 	 

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	1

 

 

Amending Agreement — Parent Guarantee

General terms

	1    	 	Interpretation
	 
	 	 	These meanings apply unless the contrary intention appears:
	 
	 	 	Irish Registration Date means the date on which JHISE is registered by the Registrar of
Companies of Ireland as having its registered office in Ireland.
	 
	 	 	JHI means:

	 	(a)	 	prior to the SE Transformation Date, JHINV;
	 
	 	(b)	 	with effect on and from the SE Transformation Date up to the Irish
Registration Date, JHISE with its corporate seat in the Netherlands; and
	 
	 	(c)	 	with effect on and from the Irish Registration Date, JHISE with its
corporate seat in the Republic of Ireland.

	 	 	JHISE means JHINV once it has converted from its present corporate form as a Dutch NV
(Naamloze Vernootschap) into an SE (Societas Europaea).
	 
	 	 	Parent Guarantee means the Guarantee dated 14 December 2006 between AICF, the NSW
Government and JHINV.
	 
	 	 	SE Transformation Date means the date on which JHINV is registered as a “Societas
Europaea” on the Dutch Trade Register pursuant to European Union Council Regulation
2157/2001.
	 
	2    	 	Confirmations and acknowledgement
	 
	2.1	 	Confirmation in relation to definition of “Guarantor”
	 
	 	 	Each party confirms that the definition of “Guarantor” for the purposes of the Parent
Guarantee is a reference to:

	 	(a)	 	with effect on and from the SE Transformation Date up to the Irish
Registration Date, JHISE with its corporate seat in the Netherlands; and
	 
	 	(b)	 	with effect on and from the Irish Registration Date, JHISE with its
corporate seat in the Republic of Ireland.

	2.2 	 	JHI Confirmation
	 
	 	 	JHI confirms that, other than as provided for in clause 3 (“Amendments”), the Parent
Guarantee remains in full force and effect and enforceable against it up to, including and
after each of the SE Transformation Date and the Irish Registration Date.

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	2

 

 

	2.3	 	Conflict
	 
	 	 	If there is a conflict between the Parent Guarantee and this agreement, the terms of this
agreement prevail.
	 
	2.4	 	Consideration
	 
	 	 	This agreement is entered into in consideration of the parties’ exchange of promises under
this agreement and the receipt of valuable consideration which is hereby acknowledged.
	 
	3    	 	Amendments
	 
	3.1	 	Parent Guarantee
	 
	 	 	As from the Irish Registration Date, the Parent Guarantee is amended as set out in
schedule 1. The parties acknowledge that the amendments to the Parent Guarantee effected
by this clause 3.1 are accurately reflected in the conformed copy of the Parent Guarantee
attached at schedule 2.
	 
	3.2	 	Irrevocable Power of Attorney
	 
	 	 	The parties acknowledge that the Second Irrevocable Power of Attorney dated December 2006
between AICF and NSW Government will be replaced by a Third Irrevocable Power of Attorney
between those parties in the form attached at schedule 3 from the date of execution of
that Third Irrevocable Power of Attorney. To avoid doubt, JHI’s execution of this
agreement constitutes its prior written consent to the replacement effected by this clause
3.2 for the purposes of clause 6.3(c) of the Parent Guarantee.
	 
	4	 	Representations and warranties by JHI
	 
	 	 	JHI warrants as at the date of this agreement and repeats such warranty as at the SE
Transformation Date and as at the Irish Registration Date that the following is true,
accurate and not misleading:

	 	(a)	 	it has been duly incorporated and is validly existing under the laws of the
jurisdiction of its incorporation and has the necessary corporate capacity and power
to enter into this agreement and to perform its obligations under this agreement;
	 
	 	(b)	 	all corporate and other action required to be taken by JHI to authorise the
execution of this agreement and the performance of its obligations under this
agreement has been duly taken;
	 
	 	(c)	 	this agreement has been duly executed on behalf of JHI and constitutes
legal, valid and binding obligations of JHI, enforceable in accordance with their
terms subject to the terms of the opinion from Loyens Loeff delivered to the NSW
Government and the Fund Trustee on or about the date of this agreement;
	 
	 	(d)	 	the execution and performance of this agreement do not conflict with or
result in a breach of any provision of the memorandum or articles of association of
JHI or any provision of any applicable law in force on the
date of this agreement or any deed to which JHI is a party, or on the SE
Transformation Date or the Irish Registration Date;

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	3

 

 

	 	(e)	 	no approval, consent, license or notice to any regulatory or governmental
body (other than such approvals, consents, licenses or notices as have been obtained
or given) is necessary to ensure the validity, enforceability or performance of the
obligations of JHI under this agreement;
	 
	 	(f)	 	the Parent Guarantee as amended by this agreement constitutes legal, valid
and binding obligations of JHI, enforceable in accordance with their terms subject to
the terms of the opinion from Arthur Cox delivered to the NSW Government and the Fund
Trustee on or about the date of this agreement;
	 
	 	(g)	 	the performance of the Parent Guarantee as amended by this agreement does
not conflict with or result in a breach of any provision of the memorandum or
articles of association of JHI or any provision of any applicable law in force on the
date of this agreement;
	 
	 	(h)	 	no approval, consent, license or notice to any regulatory or governmental
body (other than such approvals, consents, licenses or notices as have been obtained
or given) is necessary to ensure the validity, enforceability or performance of the
obligations of JHI under the Parent Guarantee as amended by this agreement; and
	 
	 	(i)	 	without limiting paragraphs (e) and (g) above, Dutch law does not preclude
or otherwise prejudice the agreement of JHI as a Dutch company to the Irish
Registration Date amendments set out in Schedule 1, which will only take effect on
the Irish Registration Date.

	 	 	JHI warrants as at the Irish Registration Date, the performance of the Parent Guarantee as
amended by this agreement does not conflict with or result in a breach of any provision of
the memorandum or articles of association of JHI or any provision of any applicable law in
force on the Irish Registration Date.
	 
	5    	 	Costs
	 
	 	 	Each party shall be responsible for its own costs, charges and expenses in connection
with the preparation, negotiation and execution of this agreement.
	 
	6	 	General
	 
	 	 	Clause 5 (“Notices”) of the Parent Guarantee applies to this agreement as if it was
fully set out in this agreement.
	 
	7	 	Counterparts
	 
	 	 	This agreement may consist of a number of copies each signed by one or more parties
to the deed. If so, the signed copies are treated as making up the one document.
	 
	8	 	Governing law
	 
	 	 	This agreement is governed by the law in force in the Netherlands, with the exception
of the Netherlands private international law. Any dispute arising out 

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	4

 

 

	      	 	of or in connection
with this agreement shall be exclusively decided by the competent court in Amsterdam.

EXECUTED as an agreement

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	5

 

 

Amending Agreement — Parent Guarantee

Schedule 1 — Irish Registration Date Amendments

The Parent Guarantee is amended as follows:

	1    	 	The definition of “Final Funding Agreement” in clause 1 (“Interpretation”) is amended by
inserting the words “, as amended from time to time” after the word Agreement in the third
line.
	 
	2	 	Clause 2.4 (“Guarantee”) is amended by deleting the sentence “This Guarantee is not a
contract of surety (borgtocht).” and replacing it with the following sentence:

	 	 	 	“The liability of the Guarantor under this Guarantee shall be as sole and primary
obligor and not merely as surety and the Guarantor hereby waives all and any of
its rights as surety which may at any time be inconsistent with any of the
provisions of this Guarantee.”.

	3    	 	Clause 2.7 (“Guarantee”) is amended by inserting the words “, insolvency, winding-up,
dissolution, examinership, the granting of court protection, administration, composition or
arrangement” after the words “moratorium of payment” in the fifth line.
	 
	4	 	Clause 2.9(a) (“Guarantee”) is amended by inserting the words “insolvency, dissolution,
examinership, the granting of court protection, administration, composition or arrangement,”
after the words “winding-up” in the first line.
	 
	5	 	Clause 3.2 (“Enforcement”) is amended by deleting the word “(verzuim)” in the fourth line and
replacing it with “in respect of the making of such Annual Payment”.
	 
	6	 	Clause 3.3(b) (“Enforcement”) is amended by:

	 	• 	 	 deleting the word “a” in the first line and replacing it with “any insolvency,”;
and
	 
	 	• 	 	inserting the words “examinership, the granting of court protection,
administration, composition or arrangement,” after the words “winding-up” in the
second line.

	7    	 	Clause 3.4 (“Enforcement”) is amended by deleting the words “(kort geding)” in the third
line.
	 
	8	 	Clause 3.5 (“Enforcement”) is amended by:

	 	• 	 	 deleting the word “(verrekening),” in the first line and replacing it with “or”;
and
	 
	 	• 	 	deleting the words “or suspension (opschorting)”.

	9    	 	Clause 3.6 is deleted and replaced with “[intentionally blank]”.
	 
	10	 	Clause 3.7(a)(i) (“Enforcement”) is deleted and replaced with the following:

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	6

 

 

	 	“(i)  	 	proceed against or exhaust or enforce any security held
from the Performing Subsidiary, any other guarantor or any other Person or
make or file any proof of claim in any insolvency proceedings relative to
the Performing Subsidiary, any other guarantor or any other person,”.

	11    	 	Clause 3.7(a)(iii) (“Enforcement”) is amended by deleting the word “Guarantee” in the first
line and replacing it with the word “Fund”.
	 
	12	 	Clause 3.7(d) (“Enforcement”) is amended by inserting a new sub-paragraph (iii) as follows
(and re-numbering sub-paragraph (iii) as sub-paragraph (iv) accordingly):

	 	“(ii)  	 	the right to interpose any defence based upon any claim
of laches or set-off or counterclaim of any nature or description;”.

	13    	 	Insert a new clause 3.8 as follows:

	 	“3.8 	 	The Guarantor confirms to the Fund Trustee and the NSW
Government that neither the Fund Trustee nor the NSW Government need advise
the Guarantor of any default by the Performing Subsidiary in respect of the
Guaranteed Obligations.”

	14    	 	Clause 5.1 is amended by replacing the existing address details for the NSW Government and
the Guarantor with the following:

	 	 	 

	“To the NSW Government:

	 
	 	 
	Name:

	 	The State of New South Wales, c/-
Department of Premier and Cabinet
	 
	 	 
	Address:

	 	Level 39, Governor Macquarie Tower, Farrer Place, Sydney, NSW

2000
	 
	 	 
	Fax number:

	 	+ 61 2 9228 3062
	 
	 	 
	Attention:

	 	Deputy Director-General (Legal)
	 
	 	 
	To the Guarantor:

	 
	 	 
	Name:

	 	James Hardie Industries S.E.
	 
	 	 
	Address:

	 	c/- Arthur Cox, Earlsfort Centre, Earlsfort Terrace, Dublin 2,
Ireland
	 
	 	 
	Fax number:

	 	+35 3 618 0618
	 
	 	 
	and

	 	Level 3, 22 Pitt Street, Sydney, NSW 2000
	 
	 	 
	Fax number:

	 	+61 2 8274 5218
	 
	 	 
	Attention:

	 	General Counsel”

	15    	 	Clause 6.4 (“NSW Government’s right to enforce”) is deleted.

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	7

 

 

	16    	 	Clause 7 (“Choice of law and jurisdiction”) is deleted and replaced with the following:

	 	“7. 	 	 CHOICE OF LAW AND JURISDICTION

	 	7.1	 	This Guarantee shall be governed by and
construed in accordance with the laws of Ireland.
	 
	 	7.2	 	The courts of Ireland have exclusive
jurisdiction to settle any dispute arising out of or in connection
with this Guarantee (including a dispute regarding the existence,
validity or termination of this Guarantee) (a “Dispute”).
	 
	 	7.3	 	The parties hereto agree that the
courts of Ireland are the most appropriate and convenient courts to
settle Disputes and accordingly no party hereto will argue to the
contrary.
	 
	 	7.4	 	This clause 7 is for the benefit of
each of the Fund Trustee and the NSW Government. As a result, each
of the Fund Trustee and the NSW Government shall not be prevented
from taking proceedings relating to a Dispute in any other courts
with jurisdiction. To the extent allowed by law, each of the Fund
Trustee and the NSW Government may take concurrent proceedings in
any number of jurisdictions.”

	17    	 	Insert a new clause 9 as follows:

	 	“9.	 	 RULE AGAINST PERPETUITIES

	 	 	 	Nothing in this Guarantee shall authorise or permit the postponement of
any estate or interest arising under the trusts created in this
Guarantee from vesting outside the perpetuity period. In this context
“perpetuity period” means the period commencing on the date of this
Guarantee and ending on the expiration of 21 years from the date of the
death of the last survivor of the descendants now living of the
President of Ireland, Mary McAleese.”

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	8

 

 

Amending Agreement — Parent Guarantee

Schedule 2 — Conformed copy of the Parent Guarantee incorporating the Irish Registration Date
Amendments

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	9

 

 

DATED 14 December 2006

Asbestos Injuries Compensation Fund Limited in its capacity as trustee for the

Charitable Fund

as the Beneficiary

and

The State of New South Wales Government

and

James Hardie Industries N.V.

as the Guarantor

 

PARENT GUARANTEE

 

THIS PARENT GUARANTEE is made on 14 December 2006 in Sydney, New South Wales

 

2

BETWEEN:

	1.    	 	(1)Asbestos Injuries Compensation
Fund Limited (ACN 117 363 461, a company limited by guarantee
incorporated under the laws of the State of New South Wales,
Australia, having its registered office at Level 3, 22 Pitt Street
Sydney New South Wales, in its capacity as trustee for the Charitable
Fund (the “Fund Trustee”), duly represented by Peter Baker and Joanne
Marchione;
	 
	and
	 
	2.	 	(2)  The State of New South Wales,
Level 39, Governor Macquarie Tower, Farrer
Place, Sydney NSW 2000, Australia (the “NSW
Government”), duly represented by Robert
John Debus;
	 
	 	 	and
	 
	3.	 	(3)  James Hardie Industries N.V., a
company incorporated under the laws of the
Netherlands, with its
corporate seat in Amsterdam, the
Netherlands, registered with the trade
register of the Chamber of Commerce with
number 34106455 (the “Guarantor”), duly
represented by Meredith Hellicar and
Russell Chenu.

The aforementioned parties also collectively referred to as the “Parties” or individually as the
“Party”.

RECITALS:

	1.    	 	(1) On 1 December 2005 the NSW Government, JHINV and the Performing
Subsidiary entered into the Original Final Funding Agreement with the common intention of
making funding available by JHINV and/or its subsidiaries to pay, on the basis set out in the
Original Final Funding Agreement, Proven Claims (as defined in the Original Final Funding
Agreement) against the Liable Entities (as defined in the Original Final Funding Agreement).

	2.    	 	(2) On 8 June 2006 the Fund Trustee executed a Deed of Accession so as to
become a party to the Original Final Funding Agreement and to give effect to the intention and
agreement of the relevant parties referred to in paragraph 1 above.

	3.    	 	(3) On 8 June 2006 Asbestos Injuries Corporation Fund Limited, the NSW
Government and the Guarantor executed a Parent Guarantee (the “Original Parent
Guarantee”).

	4.    	 	(4) On 21 November 2006 the parties to the Original Final Funding Agreement
(including the Fund Trustee) entered into Final Funding Agreement, thereby amending and
restating the Original Final Funding Agreement.

	5.    	 	(5) On 14 December 2006 Asbestos Injuries Compensation Fund Limited entered
into the Trust Deed and on December 2006 in its capacity as trustee of the Discretionary Fund
became a party to the Final Funding Agreement by executing a Deed of Accession.

	6.    	 	(6) Pursuant to Clause 10 of the Final Funding Agreement, the Guarantor has
agreed to deliver this Guarantee to the Fund Trustee and the NSW Government.

	7.    	 	(6) The NSW Government is not a creditor of the Guarantor in relation to
the payment of the Guaranteed Obligations.

 

3

IT IS AGREED AS FOLLOWS:

	1.    	 	INTERPRETATION
	 
	 	 	Capitalised terms shall be used herein as such terms are defined in the Final Funding
Agreement (and such terms will be interpreted in accordance with the laws of New South
Wales, Australia, being the governing law of the Final Funding Agreement), unless defined
otherwise in this Guarantee; and
	 
	 	 	“Final Funding Agreement” means the deed dated 21 November 2006 between the NSW Government,
JHINV, the Performing Subsidiary and the Fund Trustee which amended and restated the
Original Final Funding Agreement, as amended from time to time.
	 
	 	 	“Guarantee” means this guarantee.
	 
	 	 	“Guaranteed Obligations” means any of the payment obligations of the Performing Subsidiary
to the Fund Trustee under the Final Funding Agreement, including the obligation to pay the
Wind-Up or Reconstruction Amount, and “Guaranteed Obligation” means any one such payment
obligation. Where the Performing Subsidiary would have been liable to make a payment under
the Final Funding Agreement but for the Liquidation or Insolvency of the Performing
Subsidiary or the occurrence of a Wind-up Event or Reconstruction Event in respect of the
Performing Subsidiary, it will be taken still to be liable for the purposes of this
Guarantee.
	 
	 	 	Original Final Funding Agreement means the legally binding agreement entitled “Final Funding
Agreement” dated 1 December 2005 between JHINV, the Performing Subsidiary and the NSW
Government to which the Fund Trustee became a party on 8 June 2006.
	 
	1A 	 	ORIGINAL PARENT GUARANTEE
	 
	 	 	The parties agree that this Guarantee supersedes the Original Parent Guarantee and that,
notwithstanding clause 2.2 of the Original Parent Guarantee, on the date on which all
parties duly execute this Guarantee, the Original Parent Guarantee shall be terminated and
the obligations of all parties under it shall be fully and finally discharged. On that date
the Fund Trustee and the NSW Government shall procure that all originals of the executed
Original Parent Guarantee in their possession are promptly returned to the Guarantor.
	 
	2.	 	GUARANTEE

	 	2.1	 	The Guarantor hereby irrevocably and unconditionally:

	 	(a)	 	guarantees to the Fund Trustee the due and punctual performance
by the Performing Subsidiary of the Guaranteed Obligations;
	 
	 	(b)	 	guarantees to the Fund Trustee that, whenever the Performing
Subsidiary does not pay any amount due under any of its Guaranteed Obligations,
the Guarantor shall immediately on first written demand by the Fund Trustee pay
that amount to the Fund Trustee, as if it were the principal obligor thereof;
and
	 
	 	(c)	 	guarantees to the Fund Trustee that it shall immediately on
first written demand by or on behalf of the Fund Trustee pay to the Fund
Trustee, all costs and expenses incurred by the Fund Trustee in relation to the
protection or enforcement of its rights under this Guarantee and all costs and
damages
incurred by the Fund Trustee as a result of the Performing Subsidiary not
fulfilling one or more of the Guaranteed Obligations when due.

 

4

	 	2.2	 	The obligations of the Guarantor pursuant to Clause 2.1 shall be continuing
obligations and extend to all sums payable by the Performing Subsidiary under the
Guaranteed Obligations. The obligations of the Guarantor pursuant to Clause 2.1 shall
remain in full force and effect until all the Guaranteed Obligations shall have been
paid, satisfied or discharged in full. Termination of this Guarantee is only allowed if
and when the Final Funding Agreement is terminated (otherwise than due to breach or
default by the Guarantor or the Performing Subsidiary) and the Performing Subsidiary
has fully discharged all of the Guaranteed Obligations. The obligations of the
Guarantor shall remain in full force in the event that the Performing Subsidiary is
replaced by another subsidiary of the Guarantor in accordance with clause 6.2 of the
Final Funding Agreement.
	 
	 	2.3	 	This Guarantee is a guarantee of performance of the Guaranteed Obligations by
payment of all amounts that are the subject of the Guaranteed Obligations when due and
payable.
	 
	 	2.4	 	The Guarantee is not a contract of surety (borgtocht)The
liability of the Guarantor under this Guarantee shall be as sole and primary obligor
and not merely as surety and the Guarantor hereby waives all and any of its rights as
surety which may at any time be inconsistent with any of the provisions of this
Guarantee. The obligations of the Guarantor hereunder are independent of the
obligations of the Performing Subsidiary and the obligations of any other guarantor of
the obligations of the Performing Subsidiary under the Final Funding Agreement.
	 
	 	2.5	 	Payment by the Guarantor of a portion, but not all, of the Guaranteed
Obligations shall in no way limit, affect, modify, abridge or extinguish the
Guarantor’s liability for any portion of the Guaranteed Obligations which has not been
paid. Without limiting the generality of the foregoing, if the Fund Trustee is awarded
a judgment in any proceedings brought to enforce the Guarantor’s obligations to pay a
portion of the Guaranteed Obligations, such judgment shall not be deemed to release the
Guarantor from its obligation to pay the portion of the Guaranteed Obligations that is
not the subject of such proceedings, and such judgment shall not, except to the extent
satisfied by the Guarantor, limit, affect, modify, abridge or extinguish any part of
the Guarantor’s liability in respect of the Guaranteed Obligations.
	 
	 	2.6	 	This Guarantee is independent of, in addition to and shall not prejudice or
affect or be prejudiced or be affected by any other right, remedy, guarantee, indemnity
or security and may be enforced without first having recourse to the same or any other
mortgage, charge, pledge or lien now or hereafter held by or available to the Fund
Trustee and/or the NSW Government.
	 
	 	2.7	 	If any discharge (whether in respect of the Guaranteed Obligations or any
security for those obligations or otherwise) or arrangement is made in whole or in part
on the faith of any payment, security or other disposition by the Performing Subsidiary
or the Guarantor which is subsequently avoided or which must be restored (without
limitation) on bankruptcy, liquidation, moratorium of payment, winding-up,
insolvency, dissolution, examinership, the granting of court protection,
administration, composition or arrangement or otherwise, the liability of the
Guarantor will continue or be reinstated as if the discharge or arrangement had not
occurred. This clause 2.7 survives the discharge of this Deed.
	 
	 	2.8	 	Unless and until all the Guaranteed Obligations have been satisfied or
discharged in full, the Guarantor shall not, after a claim has been made or by virtue
of any payment 

 

5

	 	 	 	or performance under this Guarantee, in respect of any payment made to
the Fund Trustee and/or the NSW Government:

	 	(a)	 	exercise any right of subrogation in respect of or claim to be
subrogated to any rights, security or moneys held, received or receivable by
the Fund Trustee;
	 
	 	(b)	 	exercise against or claim from the Performing Subsidiary any
right of contribution or recourse;
	 
	 	(c)	 	claim as a creditor of the Performing Subsidiary in competition
with the Fund Trustee; or
	 
	 	(d)	 	have the benefit of or take any action to receive or claim any
payment, distribution or security in respect of the Guaranteed Obligations or
amounts payable under this Guarantee from or on account of the Performing
Subsidiary, or exercise any right of set-off as against the Performing
Subsidiary (and the Guarantor waives any right it would otherwise have to have
the benefit of or receive or claim any such payment, distribution or security
or to exercise any such right of set-off).

	 	2.9	 	This Guarantee will not be discharged or otherwise affected as security for the
Guaranteed Obligations as a result of any of the following:

	 	(a)	 	bankruptcy, moratorium of payment, winding-up, insolvency,
dissolution, examinership, the granting of court protection, administration,
composition or arrangement, reconstruction, liquidation or similar
proceedings relative to the Performing Subsidiary;
	 
	 	(b)	 	any change in the status, function, control or ownership of the
Performing Subsidiary;
	 
	 	(c)	 	any extension of time or other forbearance being granted or
agreed to be granted to the Performing Subsidiary in respect of its Guaranteed
Obligations;
	 
	 	(d)	 	any amendment to, or any increase, variation, waiver or release
of, any of the Guaranteed Obligations or any termination, amendment or
variation of the Final Funding Agreement (and any reference herein to the Final
Funding Agreement shall be taken as referring to the Final Funding Agreement as
amended or varied from time to time);
	 
	 	(e)	 	the taking, variation, compromise, exchange, substitution,
renewal or release of, or refusal or neglect to perfect, take up or enforce,
any rights or remedies against, or security over assets of the Performing
Subsidiary or any other person, or any non-presentment or non-observance of any
formality or other requirement in respect of any instruments or any failure to
realise the full value of any security;
	 
	 	(f)	 	any present or future guarantee, indemnity, mortgage, charge,
pledge, lien or other security or right or remedy held by or available to the
Fund Trustee being or becoming wholly or in part void, voidable or
unenforceable on any ground whatsoever; or

 

6

	 	(g)	 	any other act, event or omission (other than performance by the
Guarantor of this Guarantee) which, but for this clause might operate to
discharge, extinguish, impair or otherwise affect any of the obligations of the
Guarantor contained herein or any of the rights, powers or remedies conferred
in respect of the Guarantor upon the Fund Trustee and/or the NSW Government by
this Guarantee or by law.

	3.    	 	ENFORCEMENT

	 	3.1	 	The Fund Trustee may enforce this Guarantee only upon the occurrence of (i) a
breach of any Guaranteed Obligation by the Performing Subsidiary; (ii) a Wind-Up Event;
or (iii) a Reconstruction Event, in accordance with and subject to clause 10 of the
Final Funding Agreement.
	 
	 	3.2	 	A claim under this Guarantee in respect of the obligation of the Performing
Subsidiary to make Annual Payments (and/or instalments thereof) under clause 9 of the
Final Funding Agreement, can only be made if the Performing Subsidiary has been in
default (verzuim)in respect of the making of such Annual
Payment for a period of 40 days from the date when such Annual Payment (or any
instalment thereof) was due, provided that:

	 	(a)	 	the Performing Subsidiary or the Guarantor has immediately
provided to the NSW Government reasons for the default and such reasons are
reasonable in the circumstances (for example and without limitation, that the
Guarantor is experiencing temporary cash flow difficulties and is seeking to
rectify that difficulty); and
	 
	 	(b)	 	the Guarantor has promptly after that due date entered into and
continued to pursue or been ready, willing and able to enter into and pursue
discussions with the NSW Government and (if available) the Fund Trustee to
remedy the breach and provides to the Fund Trustee and NSW Government material
particulars of the breach and the proposed remedy or remedies;
	 
	 	(c)	 	the Guarantor is not and does not become Insolvent at any time
during that period; and
	 
	 	(d)	 	subject to clause 10 of the Final Funding Agreement, a
Reconstruction Event does not occur at any time during that period,

	 	 	 	provided that such period shall automatically expire upon any of the requirements in
paragraphs (a) to (d) inclusive (“Moratorium Requirements”) ceasing to be satisfied.
	 
	 	 	 	If the Moratorium Requirements remain satisfied at the expiry of the above 40 day
period and if in the opinion of the NSW Government (acting reasonably) there is a
reasonable prospect of the Guarantor or the Performing Subsidiary paying the
outstanding amount within a further period of 50 days, the initial 40 day period
shall be extended once by a further 50 days, save that such period shall
automatically expire upon any of the Moratorium Requirements ceasing to be
satisfied.
	 
	 	3.3	 	Without prejudice to clause 3.2 above, the Fund Trustee shall not be obliged
before bringing a claim under this Guarantee:

	 	(a)	 	to take any action against the Performing Subsidiary or to
obtain judgment in any court against the Performing Subsidiary or any other
person;

 

7

	 	(b)	 	to file any claim in any insolvency, bankruptcy, moratorium of
payment, winding-up, examinership, the granting of court protection,
administration, composition or arrangement, liquidation or similar
proceedings relative to the Performing Subsidiary or any other person; or
	 
	 	(c)	 	to make, enforce or seek to enforce any claim against the
Performing Subsidiary or any other person under any agreement or arrangement.

	 	3.4	 	The restrictions to the enforcement of the Guarantee as set out in clause 3.2
of this Guarantee do not apply in respect of claims under or in relation to the
Guarantee brought by the Fund Trustee in summary proceedings (kort
geding) or other proceedings to obtain urgent interlocutory Court relief.
	 
	 	3.5	 	The Guarantor waives any and all rights of set off
(verrekening),or counterclaim or suspension
(opschorting) it may have at any time with respect to amounts payable
hereunder against amounts owed to it by the Fund Trustee.
	 
	 	3.6	 	The Guarantor waives to the fullest extent allowed by the laws of the
Netherlands all rights, privileges, defences and exceptions pursuant to the Articles
6:139, 7:852, 853, 854, 855 and 856 of the Dutch Civil Code.[intentionally
blank]
	 
	 	3.7	 	To the extent permitted by law the Guarantor hereby waives, for the benefit of
the Fund Trustee and the NSW Government:

	 	(a)	 	any right to require the Fund Trustee and/or the NSW
Government, as a condition of payment or performance by the Guarantor, to:

	 	(i)	 	proceed against or exhaust or enforce
any security held from the Performing Subsidiary, any other
guarantor or any other Person or make or file any proof of claim in any
insolvency proceedings relative to the Performing Subsidiary any
other guarantor or any other Person,
	 
	 	(ii)	 	proceed against or have resort to any balance
of any credit on the books of the Fund Trustee and/or the NSW
Government in favour of the Performing Subsidiary or any other Person,
or
	 
	 	(iii)	 	pursue any other remedy in the power of the
GuaranteeFund Trustee and/or the NSW Government
whatsoever;

	 	(b)	 	any defence arising by reason of the incapacity, lack of
authority or any disability or other defence of the Performing Subsidiary or
any other guarantor, including any defence based on or arising out of the lack
of validity or the unenforceability of the Guaranteed Obligations or any
agreement or instrument relating thereto or by reason of the cessation of the
liability of the Performing Subsidiary or any other guarantor from any cause
other than payment in full of the Guaranteed Obligations;
	 
	 	(c)	 	any defence based upon any statute or rule of law which
provides that the obligation of a surety must be neither larger in amount nor
in other respects more burdensome than that of the principal;

 

8

	 	 	 	(d)

	 	(d)	 	(i)(e) any principles or provisions of law,
statutory or otherwise, which are or might be in conflict with the terms hereof
and any discharge of the Guarantor’s obligations hereunder;

	 	(i)	 	the benefit of any statute of limitations
affecting the Guarantor’s liability hereunder or the enforcement
hereof,
	 
	 	(ii)	 	the right to interpose any defence based
upon any claim of laches or set-off or counterclaim of any nature or
description; and
	 
	 	(iii)	 	(iii) promptness, diligence
and any requirement that the Fund Trustee and/or the NSW Government
protect, secure, perfect or insure any security interest or lien or any
property subject thereto;

	 	(e)	 	notices, demands, presentments, protests, notices of protest,
notices of dishonour and notices of any action or inaction, including
acceptance hereof, notices of default hereunder, the Final Funding Agreement,
any other Related Agreement or any agreement or instrument related thereto,
notices of any renewal, extension or modification of the Guaranteed Obligations
or any agreement related thereto, notices of any extension of credit to the
Performing Subsidiary and any right to consent to any thereof; and
	 
	 	(f)	 	any defences or benefits that may be derived from or afforded
by law which limit the liability of or exonerate guarantors or sureties, or
which may conflict with the terms hereof.

	 	3.8	 	The Guarantor confirms to the Fund Trustee and the NSW Government that
neither the Fund Trustee nor the NSW Government need advise the Guarantor of any
default by the Performing Subsidiary in respect of the Guaranteed Obligations.

	4.    	 	REPRESENTATIONS AND WARRANTIES

	 	4.1	 	The Guarantor warrants that the following is true, accurate and not misleading
as of the date of this Guarantee and will at all times after the date of this Guarantee
up to and including the Commencement Date be true accurate and not misleading:

	 	(a)	 	The Guarantor has been duly incorporated and is validly
existing under the laws of its jurisdiction and has the necessary corporate
capacity and power to enter into the Guarantee and to perform its obligations
under the Guarantee.
	 
	 	(b)	 	All corporate and other action required to be taken by the
Guarantor to authorise the execution of the Guarantee and the performance of
its obligations under the Guarantee has been duly taken.
	 
	 	(c)	 	The Guarantee has been duly executed on behalf of the Guarantor
and constitutes legal, valid and binding obligations of the Guarantor,
enforceable in accordance with their terms subject to the terms of the opinion
from de
Brauw Blackstone Westbroek referred to in schedule 5 of the Final Funding
Agreement.
	 
	 	(d)	 	The execution and performance of the Guarantee do not conflict
with or result in a breach of any provision of the articles of association of
the Guarantor, including but not limited to its corporate purpose, or any
provision

 

9

	 	 	 	of any applicable law in force on the date of this Guarantee or any
agreement to which the Guarantor is a party.
	 
	 	(e)	 	No approval, consent, license or notice to any regulatory or
governmental body (other than such approvals, consents, licenses or notices as
have been obtained or given) is necessary to ensure the validity,
enforceability or performance of the obligations of the Guarantor under the
Guarantee.

	5.    	 	NOTICES

	 	5.1	 	All notices, consents, waivers and other communications under this Guarantee
must be in writing in English and delivered by hand or sent by regular mail, registered
mail, express courier, facsimile or e-mail to the appropriate addresses and facsimile
numbers set out below or to such address and facsimile number as a Party may notify to
the other Party from time to time. A notice shall be effective upon receipt and shall
be deemed to have been received at the time of delivery (if delivered by hand,
registered mail or express courier) or at the time of successful transmission (if
delivered by fax or e-mail).

	 	 	 

	To the Fund Trustee:
	 
	 	 
	Name:

	 	Asbestos Injuries Compensation Fund Limited
	Address:

	 	Level 3, 18-22 Pitt Street Sydney New South Wales
	Fax number:

	 	+612 8274 5217
	Attention:

	 	The Chairman
	 
	 	 
	To the NSW Government:
	 
	 	 
	Name:

	 	The State of New South Wales, c/-TheDepartment of Premier and Cabinet
Office
	Address:

	 	Level 39, Governor Macquarie Tower, Farrer Place, Sydney, NSW 2000
	Fax number: 

Attention:

	 	+ 61 2 9228 3062

Deputy Director-General (Legal)
	 
	 	 
	To the Guarantor:
	Name:

	 	James Hardie Industries NVS.E.
	Addresses:

	 	Atrium, 8th floor, Strawinskylaan 3077, 1077ZX

Amsterdam, The Netherlands
	Addresses:

	 	c/- Arthur Cox, Earlsfort Centre, Earlsfort Terrace,

Dublin 2, Ireland
	Fax number:

	 	+35 3 618 0618
	 

	 	and
	 

	 	Level 3, 2022 Pitt Street, Sydney, NSW 2000

 

10

	 	 	 

	Fax number:

	 	+61 2 8274 5218
	Attention:

	 	The Chairman and the Chief Financial OfficerGeneral
Counsel

	6.    	 	NSW GOVERNMENT’S RIGHT TO ENFORCE

	 	6.1	 	6.1 The parties agree and acknowledge that clause 16.6 of the
Final Funding Agreement provides that the NSW Government shall be entitled directly to
enforce all promises made by the Guarantor to the Fund Trustee under this Guarantee to
the full extent permitted by law on and subject to the terms of clause 16.6 of the
Final Funding Agreement.
	 
	 	6.2	 	6.2 Any person (including, but not limited to, a firm, body
corporate, unincorporated association, court or authority) who deals with the NSW
Government in good faith in relation to this Guarantee may, without enquiry, assume
that the NSW Government has complied with clause 16.6 of the Final Funding Agreement
unless the contrary is proved.
	 
	 	6.3	 	6.3 The parties agree and acknowledge that:

	 	(a)	 	the Guarantee is a Related Agreement under the Final Funding
Agreement;
	 
	 	(b)	 	under an Irrevocable Power of Attorney, a copy of which is
attached as Annexure A to this Guarantee, and in addition to its rights under
clause 6.1 of this Guarantee, the NSW Government shall have the power directly
to enforce as an attorney of the Fund Trustee under the Irrevocable Power of
Attorney and on behalf of the Fund Trustee all promises made by the Guarantor
to the Fund Trustee under this Guarantee, subject to the terms of clause 16.6
of the Final Funding Agreement;
	 
	 	(c)	 	under the Final Funding Agreement, the NSW Government and the
Fund Trustee covenanted that they will not amend or replace that Irrevocable
Power of Attorney without the prior written consent of the Guarantor, not to be
unreasonably withheld; and
	 
	 	(d)	 	any actions taken by the NSW Government under that Irrevocable
Power of Attorney in respect of this Guarantee are valid and binding to the
extent such actions are made in accordance with that Irrevocable Power of
Attorney.

	 
	 	6.4	 	On the legal relationship of the
Beneficiary and the NSW Government vis a vis the Grantor, article 6:16
of the Dutch Civil code does not apply.

	7.    	 	CHOICE OF LAW AND JURISDICTION

	 	7.1	 	This Guarantee shall be governed by and construed in accordance with the
laws of Ireland.
	 
	 	7.2	 	The Guarantee is governed by the laws of the Netherlands, with the
exception of the Netherlands private international law. Any dispute arising out of or
in connection with this Guarantee shall be exclusively decided by the competent court
in Amsterdam. The courts of Ireland have exclusive jurisdiction to settle
any dispute arising out of or in connection with this Guarantee (including a dispute
regarding the existence, validity or termination of this Guarantee) (a
“Dispute”).

 

11

	 	7.3	 	The parties hereto agree that the courts of Ireland are the most
appropriate and convenient courts to settle Disputes and accordingly no party hereto
will argue to the contrary.
	 
	 	7.4	 	This clause 7 is for the benefit of each of the Fund Trustee and the NSW
Government. As a result, each of the Fund Trustee and the NSW Government shall not be
prevented from taking proceedings relating to a Dispute in any other courts with
jurisdiction. To the extent allowed by law, each of the Fund Trustee and the NSW
Government may take concurrent proceedings in any number of jurisdictions.

	8.    	 	COUNTERPARTS
	 
	 	 	This Guarantee may be executed in any number of counterparts. All counterparts together
will be taken to be one instrument.
	 
	9.	 	RULE AGAINST PERPETUITIES
	 
	 	 	Nothing in this Guarantee shall authorise or permit the postponement of any estate or
interest arising under the trusts created in this Guarantee from vesting outside the
perpetuity period. In this context “perpetuity period” means the period commencing on the
date of this Guarantee and ending on the expiration of 21 years from the date of the death
of the last survivor of the descendants now living of the President of Ireland, Mary
McAleese.

Thus agreed and signed in Sydney on 14 December 2006.

	 	 	 	 	 	 

	Signed for Asbestos Injuries
	 	)	 	 	 
	Compensation Fund Limited by
	 	)	 	 	 
	 
	 
	 
	 	 	 	 
	Name: Peter Baker
	 	 	Name:	Joanne Marchione	 
	Director / Secretary
	 	 	 	Director	 
	 
	 
	Signed by Meredith Hellicar
	 	)	 	 	 
	and Russell Chenu for James
	 	)	 	 	 
	Hardie Industries N.V.
	 	)	 	 	 
	 
	 
	 
	 	 	 	 
	Meredith Hellicar
	 	 	Name:	Russell Chenu	 
	Chairman
	 	 	 	Director	 
	 
	 
	Signed by
	 	)	 	 	 
	for the State of New South Wales
	 	)	 	 	 
	in the presence of
	 	)	 	 	 
	 
	 
	 
	 	 	 	 
	Signature of Witness
	 	 	Name: 	 	 
	 
	 
	 
	 	 	 	 
	Name of Witness
	 	 	 	 	 

 

12

Annexure A

Irrevocable Power of Attorney

(attached)

 

 

Amending Agreement — Parent Guarantee

Schedule 3 — Third Irrevocable Power of Attorney

	 	 	 	 	 

	
ã Mallesons Stephen Jaques 

9955394_2
	 	
Amending Agreement — Parent Guarantee 

16 June 2009
	 	
10

 

 

THIRD IRREVOCABLE POWER

OF ATTORNEY

ASBESTOS INJURIES

COMPENSATION FUND LIMITED

(in its capacity as Trustee of the

Compensation Funds)

THE STATE OF NEW SOUTH

WALES

2 Park Street Sydney NSW 2000 Australia

email@gtlaw.com.au http://www.gtlaw.com.au Facsimile + 61 2 9263 4111 Telephone + 61 2 9263 4000

 

 

	 	 	 	 	 	 	 

	CONTENTS	 	 	 	 
	 
	 	 	 	 	 	 
	1.

	 	PRELIMINARY
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	APPOINTMENT
	 	 	1	 
	 
	 	 	 	 	 	 
	3.

	 	CONSIDERATION
	 	 	1	 
	 
	 	 	 	 	 	 
	4.

	 	POWERS
	 	 	2	 
	 
	 	 	 	 	 	 
	5.

	 	VALIDITY OF ACTS AND RATIFICATION
	 	 	3	 
	 
	 	 	 	 	 	 
	6.

	 	DECLARATION
	 	 	3	 
	 
	 	 	 	 	 	 
	7.

	 	USE OF NAME
	 	 	3	 
	 
	 	 	 	 	 	 
	8.

	 	AUTHORITY TO BENEFIT THIRD PARTIES
	 	 	3	 
	 
	 	 	 	 	 	 
	9.

	 	APPOINTMENT IRREVOCABLE
	 	 	4	 
	 
	 	 	 	 	 	 
	10.

	 	US ACKNOWLEDGMENT
	 	 	4	 
	 
	 	 	 	 	 	 
	11.

	 	GOVERNING LAW
	 	 	4	 
	 
	 	 	 	 	 	 
	12.

	 	NOTICES
	 	 	4	 
	 
	 	 	 	 	 	 
	13.

	 	COUNTERPARTS
	 	 	4	 
	 
	 	 	 	 	 	 
	ATTACHMENT A — DICTIONARY AND INTERPRETATION	 	 	1	 

Page i

 

THIS THIRD IRREVOCABLE POWER OF ATTORNEY is made on 23 June, 2009

BETWEEN

	1.	 	ASBESTOS INJURIES COMPENSATION FUND LIMITED ACN 117 363 461, a company limited by
guarantee incorporated under the laws of the State of New South Wales, Australia, having its
registered office at Level 7, 233 Castlereagh Street, Sydney, New South Wales, in its capacity
as trustee for the Compensation Funds (Appointor)
	 
	2.	 	THE STATE OF NEW SOUTH WALES (Attorney)

THE PARTIES AGREE

	1.	 	PRELIMINARY

Defined Terms and Interpretation

	1.1	 	A term or expression starting with a capital letter which is defined in the Dictionary
in Part 1 of Attachment A (Dictionary), has the meaning given to it in the
Dictionary.
	 
	1.2	 	The Interpretation clauses in Part 2 of Attachment A (Interpretation)
set out rules of interpretation for this deed.

	2.	 	APPOINTMENT

The Appointor appoints the Attorney to be its attorney from the date of this deed for the
duration of the Final Funding Agreement.

	3.	 	CONSIDERATION

Each party acknowledges entering into this deed and incurring obligations and giving rights
under this deed for valuable consideration received from the other party to this deed.

Page 1

 

	4.	 	POWERS
	 
	4.1	 	Scope

Subject to clause 4.2, the Appointor hereby irrevocably grants the Attorney the powers to do
in the name of the Appointor and on its behalf everything that the Attorney considers necessary or
expedient to enforce on behalf of the Appointor all promises made by JHI and the Performing
Subsidiary to the Appointer under clauses 6, 9, 10, 15.1 and 15.7 of the Final Funding Agreement
and under each Relevant Agreement, including without limitation the powers to:

	(a)	 	subject to clause 10 of the Final Funding Agreement, vote and prove, on behalf of the
Appointor, the Wind-Up or Reconstruction Amount or any debt owing to the Appointer under
clause 6, 9, 10, 15.1 and 15.7 of the Final Funding Agreement and any Relevant Agreement and
make application to any court of competent jurisdiction in relation to any Reconstruction
Event or Insolvency Event of JHI;
	 
	(b)	 	subject to clause 10 of the Final Funding Agreement be present and vote at any meeting
relating to any Reconstruction Event or, subject to the Intercreditor Deeds, any Insolvency
Event of JHI, or any other meeting of creditors of JHI where the obligation owed to the
Appointor arises under clause 6, 9, 10, 15.1 or 15.7 of the Final Funding Agreement or any
Relevant Agreement;
	 
	(c)	 	individually make submissions to an Insolvency Official or any court having jurisdiction in
connection with any Reconstruction Event or an Insolvency Event of JHI; and
	 
	(d)	 	do anything which in the Attorney’s opinion is necessary or desirable to ensure the validity
and enforceability of this power of attorney under any applicable law (including without
limitation, stamping or registering this power of attorney or filing this power of attorney
with any government authority).

Without limiting the foregoing but subject to clause 4.2, in respect of an obligation owed to the
Appointor which arises under clause 6, 9, 10, 15.1 or 15.7 of the Final Funding Agreement or the
Relevant Agreements, the Appointor hereby authorizes the Attorney, as attorney in fact for the
Appointor and with full power of substitution to attend the meeting of creditors of JHI or any
adjournment thereof, and, subject to the Intercreditor Deeds, to vote in the Appointor’s behalf on
any question that may be lawfully submitted

Page 2

 

to creditors at such meeting or adjourned meeting, and for a trustee or trustees of the estate of
JHI and to accept or reject any plan of reorganisation of JHI.

	4.2	 	Exercise
	 
	(a)	 	The foregoing powers of enforcement are subject to clause 16.6 of the Final Funding
Agreement.
	 
	(b)	 	This power of attorney automatically terminates in the event of the termination of the Final
Funding Agreement.
	 
	5.	 	VALIDITY OF ACTS AND RATIFICATION

The Appointor:

	(a)	 	declares that everything done by the Attorney in exercising powers under this power of
attorney is as valid as if it had been done by the Appointor; and
	 
	(b)	 	agrees to ratify, confirm and be bound by whatever the Attorney does in exercising powers
under this power of attorney.
	 
	6.	 	DECLARATION

The Appointor declares that a Person who deals with the Attorney in good faith may accept a
written statement signed by the Attorney to the effect that this power of attorney has not been
revoked as conclusive evidence of that fact.

	7.	 	USE OF NAME

The Attorney may exercise powers under this power of attorney in the name of the Appointor
or in the name of the Attorney including the conduct of any court proceedings.

	8.	 	AUTHORITY TO BENEFIT THIRD PARTIES

The Appointor expressly authorises the Appointor to do anything which may result in a
benefit to a third party.

Page 3

 

	9.	 	APPOINTMENT IRREVOCABLE

The Appointor declares that this power of attorney is given for valuable consideration and
is irrevocable from the date of this deed for the duration of the Final Funding Agreement.

	10.	 	US ACKNOWLEDGMENT

The Appointer must, on request by the Attorney, use all reasonable endeavours to ensure that
the execution of this deed is acknowledged before one of the officers enumerated in 28 U.S.C § 459,
§ 953, Rule 9012, or a person authorised to administer oaths under the laws of the state where the
oath is administered.

	11.	 	GOVERNING LAW

This deed is governed by the laws applicable in New South Wales.

	12.	 	NOTICES

Clause 30 of the Final Funding Agreement shall apply to this deed with the necessary
changes.

	13.	 	COUNTERPARTS

This deed may be executed in any number of counterparts, each of which when executed, is an
original. These counterparts together make one instrument.

Page 4

 

EXECUTED as a deed.

EXECUTED by ASBESTOS

INJURIES COMPENSATION FUND LIMITED

in its capacity as trustee of

the Compensation Funds:

	 	 	 

	/s/ Joanne Marchione

	 	/s/ Dallas Booth
	 

Signature of Director*

	 	 

Signature of Director/Secretary*
	 
	 	 
	Joanne Marchione

	 	Dallas Booth
	 

Name of Director (print)

	 	 

Name of Director/Secretary (print)
	 
	 	 
	/s/ Timothy W Blue

	 	/s/ Timothy W Blue
	 

Signature of witness

	 	 

Signature of witness
	 
	 	 
	Timothy William Blue

	 	Timothy William Blue
	 

Name of witness (print)

	 	 

Name of witness (print)

 

			
	*	 	Each individual signing this deed on behalf of Asbestos Injuries Compensation Fund Limited
acknowledges that he or she is a director or secretary of the corporation named above and is
authorised to execute this power of attorney on its behalf.

Signing page 1

 

	 	 	 	 	 
	SIGNED by the Honourable John 

Hatzistergos MLC, Attorney General of

New South Wales, for the State of New 

South Wales:

 	 	 
	/s/ John Hatzistergos
 	 	 
	 	 	 
	 	 	 

Signing page 2

 

	 	 	 	 	 

ATTACHMENT A — DICTIONARY AND INTERPRETATION

DICTIONARY AND INTERPRETATION

(Clause 1.1)

	1.	 	DICTIONARY

In this deed:

Amending Agreement (Parent Guarantee) means the agreement of that title dated on or
about the date of this deed between the Appointor, the Attorney and JHI.

Amending Deed to the Intercreditor Deed means the deed of that title dated on or about the
date of this deed between the Appointor, the Attorney, JHI and AET Structured Finance Services Pty
Limited.

Amending Deed to the Performing Subsidiary Intercreditor Deed means the agreement of that
title dated on or about the date of this deed between the Appointor, the Attorney, the Performing
Subsidiary and AET Structured Finance Services Pty Limited.

Claimants has the meaning given to it in the Final Funding Agreement.

Compensation Funds has the meaning given to it in the Final Funding Agreement.

Controlled Entity has the meaning given to it in the Final Funding Agreement.

Cross Guarantee has the meaning given to it in the Final Funding Agreement.

Deed of Confirmation means the Deed of Confirmation dated on or about the date of this
deed between JHI, the Performing Subsidiary, the Attorney and the Appointor.

Final Funding Agreement means the document entitled “Amended & Restated Final Funding
Agreement in respect of the provision of long term funding for compensation arrangements for
certain victims of Asbestos-related diseases in Australia” dated 21 November 2006 between JHINV,
the Performing Subsidiary, the Attorney and the Appointor, as amended by amending deeds dated 6
August 2007, 8 November 2007, 11 June 2008 and 17 July 2008 between those parties and by the Deed
of Confirmation.

Initial Funding has the meaning given in the Final Funding Agreement.

Insolvency Event has the meaning given to it in the Final Funding Agreement.

Schedule, Page 1

 

Insolvency Official has the meaning given to it in the Intercreditor Deeds.

Intercreditor Deed means each deed so entitled to be entered into between JHI or the
Performing Subsidiary (as the case may be), the Attorney, the Appointor and the Guarantee Trustee
(as defined in that deed), substantially in the form annexed as Annexure 7A or 7B respectively, of
the Final Funding Agreement, as may be amended with the agreement of JHI and the Attorney (in each
case acting reasonably) as the result of review by, and negotiations with, JHI’s existing bank
Lenders (as defined in the Final Funding Agreement) or pursuant to the Deed of Confirmation.

Irish Registration Date means the date on which JHISE is registered by the Registrar
of Companies of Ireland as having its registered office in Ireland

JHI means:

	(a)	 	until it has transformed into a Societas Europaea on the SE Transformation Date, JHINV;
	 
	(b)	 	with effect on and from the SE Transformation Date up to the Irish Registration Date, JHISE
with its corporate seat in the Netherlands; and
	 
	(c)	 	with effect on and from the Irish Registration Date, JHISE with its corporate seat in the
Republic of Ireland,

and any Parent Entity.

JHINV means James Hardie Industries N.V. and any Parent Entity.

JHISE means JHINV once it has converted from its present corporate form as a Dutch NV
(Naamloze Vernootschap) into an SE (Societas Europaea) and any Parent Entity.

Notice has the meaning given to it in the Final Funding Agreement.

Parent Entity means any Person and all such Persons of which JHI is a Controlled
Entity and where there are two or more such Persons, only the immediate holding company and the
ultimate holding company of JHI.

Performing Subsidiary means James Hardie 117 Pty Ltd or, if a subsidiary of JHI other
than that entity is nominated under clause 6.2 of the Final Funding Agreement to perform the
obligations described in clauses 6 and 9 of the Final Funding Agreement and each of JHI and that
subsidiary has complied with clause 6.2 of the Final Funding Agreement, that subsidiary.

Person includes any general partnership, limited partnership, corporation, limited
liability company, joint venture, trust, business trust, governmental agency, co-operative,
association,

Signing page 2

 

 individual or other entity, and the heirs, executors, administrators, legal
representatives, successors and assigns of such a person as the context may require.

Reconstruction Event has the meaning given to it in the Final Funding Agreement.

Relevant Agreements means each of those documents listed in Schedule 1 to the Final
Funding Agreement to which the Appointor is a party, each Cross-Guarantee given in favour of the
Appointer by any Controlled Entity of JHI, the Deed of Confirmation, the Amending Agreement (Parent
Guarantee), the Amending Deed to the Intercreditor Deed and the Amending Deed to the Performing
Subsidiary Intercreditor Deed.

SE Transformation Date means the date on which JHI is registered as a “Societas
Europaea” on the Dutch Trade Register pursuant to European Union Council Regulation 2157/2001.

Wind-Up or Reconstruction Amount has the meaning given to it in the Final Funding
Agreement.

	2.	 	INTERPRETATION

In this deed the following rules of interpretation apply unless the contrary intention
appears.

	(a)	 	Headings are for convenience only and do not affect the interpretation of this deed.
	 
	(b)	 	The singular includes the plural and vice versa.
	 
	(c)	 	Words that are gender neutral or gender specific include each gender.
	 
	(d)	 	Where a word or phrase is given a particular meaning, other parts of speech and grammatical
forms of that word or phrase have corresponding meanings.
	 
	(e)	 	The words ‘such as’, ‘including’, ‘particularly’ and similar expressions are not used as nor
are intended to be interpreted as words of limitation.
	 
	(f)	 	A reference to:

	 	(i)	 	a thing (including but not limited to a chose in action or other right)
includes a part of that thing;
	 
	 	(ii)	 	a document includes all amendments or supplements to that document;
	 
	 	(iii)	 	a clause, term, party, schedule or attachment is a reference to a clause or
term of, or party, schedule or attachment to this deed;

Signing page 3

 

	 	(iv)	 	this deed includes all schedules and attachments to it;
	 
	 	(v)	 	an agreement other than this deed includes an undertaking, or legally
enforceable arrangement or understanding whether or not in writing; and
	 
	 	(vi)	 	a monetary amount is in Australian dollars.

Signing page 4

 

Amending Agreement — Parent Guarantee

Signing page

DATED: 23 June 2009

	 	 	 	 	 

	SIGNED by The Honourable John
 Hatzistergos
MLC 

Attorney-General of New South Wales 

for THE STATE OF NEW SOUTH
 WALES in the
presence of:

/s/ Leigh Rae Sanderson
 

Signature of witness 

Leigh Rae Sanderson
 

Name of witness (block letters)

	 	)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)
	 	

/s/ John Hatzistergos
 

Signature 

Attorney General
 

Office of Signatory
	 
	 	 	 	 
	EXECUTED by ASBESTOS
 INJURIES
COMPENSATION
 FUND LIMITED in
accordance with 
section 127(1) of
the Corporations Act 
2001 (Cwlth)
by authority of its
 directors:

/s/ Joanne Marchione
 

Signature of director 

Joanne Marchione
 

Name of director (block letters)

	 	)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)
	 	

/s/ Dallas Booth
 

Signature of director/company 

secretary*

*delete whichever is not applicable 

Dallas Booth
 

Name of director/company secretary*

(block letters)

*delete whichever is not applicable

	 	 	 	 	 

	ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	11

 

 

	 	 	 	 	 

	EXECUTED by 

Marcin Firek and 

Sean O’Sullivan 

as an authorised signatory for, and

SEALED AND DELIVERED as a
 deed by,
JAMES HARDIE 
INDUSTRIES N.V. in
the presence of:

/s/ T. W. Blue
 

Signature of witness 

T. W. Blue
 

Name of witness (block letters)

	 	)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)
	 	

/s/ Marcin Firek
 

By executing this agreement the 

signatory states that the signatory
has
 received no notice of revocation
of the
 authority under which the
signatory
 signs this agreement 

Attorney
 

Position

/s/ Sean O’Sullivan
 

By executing this agreement the 

signatory states that the signatory
has 
received no notice of revocation
of the
 authority under which the
signatory
 signs this agreement 

Attorney

 

Position

	 	 	 	 	 

	ã Mallesons Stephen Jaques 

9955394_2
	 	Amending Agreement — Parent Guarantee 

16 June 2009
	 	12

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