Document:

Supplemental Indenture No. 11

 Exhibit 4(a) 

 
  

 
 PPL ENERGY SUPPLY, LLC,

 Issuer 
 TO 
 THE BANK OF NEW YORK MELLON, 

Trustee 
  

 
 Supplemental
Indenture No. 11 
 Dated as of December 1, 2011 

Supplemental to the Indenture 
 dated as of October 1, 2001 
 Establishing a series of Securities
designated 
 Senior Notes, 4.60% Series due 2021 

initially limited in aggregate principal amount to $500,000,000 

 
  

 

 SUPPLEMENTAL INDENTURE NO. 11, dated as of December 1, 2011, between PPL
ENERGY SUPPLY, LLC, a limited liability company duly organized and existing under the laws of the State of Delaware (herein called the “Company”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, as Trustee
(herein called the “Trustee”), under the Indenture dated as of October 1, 2001 (hereinafter called the “Original Indenture”), this Supplemental Indenture No. 11 being supplemental thereto. The Original Indenture and any
and all indentures and instruments supplemental thereto are hereinafter sometimes collectively called the “Indenture.” 

Recitals of the Company 
 The Original Indenture was authorized, executed and delivered by the Company 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. 
 As contemplated by Sections 301 and 1201(f) of the Original Indenture, the Company wishes to establish a series of Securities to be designated “Senior Notes, 4.60% Series due 2021” 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 $500,000,000 (such series of Securities to be hereinafter sometimes called “Series
No. 10”). 
 The Company has duly authorized the execution and delivery of this Supplemental Indenture No. 11 to
establish the Securities of Series No. 10 and has duly authorized the issuance of such Securities. All acts necessary to make this Supplemental Indenture No. 11 a valid agreement of the Company and to make the Securities of Series
No. 10 valid obligations of the Company have been performed. 
 NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE NO. 11
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 Securities of Series No. 10 as follows: 
 ARTICLE ONE 
 Tenth Series of Securities 

Section 1. There is hereby created a series of Securities designated “Senior Notes, 4.60% Series due 2021” and
limited in aggregate principal amount (except as contemplated in Section 301(b) and the last paragraph of Section 301 of the Original Indenture) to $500,000,000. The form and terms of the Securities of Series No. 10 shall be
established in an Officer’s Certificate of the Company, as contemplated by Section 301 of the Original Indenture. 

Section 2. The Company hereby agrees that, if the Company shall make any deposit of money and/or Eligible Obligations with
respect to any Securities of Series No. 10, or 

  
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any portion of the principal amount thereof, as contemplated by Section 701 of the Indenture, the Company shall not deliver an Officer’s Certificate described in clause (z) in the
first paragraph of said Section 701 unless the Company shall also deliver to the Trustee, together with such Officer’s Certificate, either: 
 (A) an instrument wherein the Company, notwithstanding the satisfaction and discharge of its indebtedness in respect of such Securities, shall assume the obligation (which shall be absolute and
unconditional) to irrevocably deposit with the Trustee or Paying Agent such additional sums of money, if any, or additional Eligible Obligations (meeting the requirements of Section 701), if any, or any combination thereof, at such time or
times, as shall be necessary, together with the money and/or Eligible Obligations theretofore so deposited, to pay when due the principal of and premium, if any, and interest due and to become due on such Securities or portions thereof, all in
accordance with and subject to the provisions of said Section 701; provided, however, that such instrument may state that the obligation of the Company to make additional deposits as aforesaid shall arise only upon the delivery to
the Company by the Trustee of a notice asserting the deficiency and showing the calculation thereof and shall continue only until the Company shall have delivered to the Trustee an opinion of an independent public accountant of nationally recognized
standing to the effect that no such deficiency exists and showing the calculation of the sufficiency of the deposits then held by the Trustee; or 
 (B) an Opinion of Counsel to the effect that the Holders of such Securities, or portions of the principal amount thereof, will not recognize income, gain or loss for United States federal income tax
purposes as a result of the satisfaction and discharge of the Company’s indebtedness in respect thereof and will be subject to United States federal income tax on the same amounts, at the same times and in the same manner as if such
satisfaction and discharge had not been effected. 
 Section 3. The Company agrees that for so long as any
Securities of Series No. 10, shall remain Outstanding, without consent of the Holders of a majority in principal amount of the Outstanding Securities of such series, the Company shall not create, incur or assume any Lien (other than Permitted
Liens) upon any property of the Company, whether now owned or hereafter acquired, in order to secure any Debt of the Company. The foregoing agreement shall not restrict the ability of Subsidiaries or Affiliates of the Company to create, incur or
assume any Lien upon their properties or assets. 
 Section 4. The provisions of Section 3 above shall not
prohibit the creation, issuance, incurrence or assumption of any Lien if either: 
 (A) the Company shall make
effective provision whereby all Securities of Series No. 10 then Outstanding shall be secured equally and ratably with all other Debt then outstanding under such Lien; or 

(B) the Company shall deliver to the Trustee bonds, notes or other evidences of indebtedness secured by the Lien which
secures such Debt (hereinafter called “Secured 

  
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Obligations”) (I) in an aggregate principal amount equal to the aggregate principal amount of the Securities of Series No. 10 then Outstanding, (II) maturing (or being subject to
mandatory redemption) on such dates and in such principal amounts that, at each Stated Maturity of the Outstanding Securities of Series No. 10, there shall mature (or be redeemed) Secured Obligations equal in principal amount to such Securities
then to mature and (III) containing, in addition to any mandatory redemption provisions applicable to all Secured Obligations outstanding under such Lien and any mandatory redemption provisions contained therein pursuant to clause (II) above,
mandatory redemption provisions correlative to the provisions, if any, for the mandatory redemption (pursuant to a sinking fund or otherwise) of the Securities of Series No. 10 or for the redemption thereof at the option of the Holder, as well
as a provision for mandatory redemption upon an acceleration of the maturity of all Outstanding Securities of Series No. 10 following an Event of Default (such mandatory redemption to be rescinded upon the rescission of such acceleration); it
being expressly understood that such Secured Obligations (X) may, but need not, bear interest, (Y) may, but need not, contain provisions for the redemption thereof at the option of the issuer, any such redemption to be made at a redemption
price or prices not less than the principal amount thereof and (Z) shall be held by the Trustee for the benefit of the Holders of all Securities of Series No. 10 from time to time Outstanding subject to such terms and conditions relating
to surrender to the Company, transfer restrictions, voting, application of payments of principal and interest and other matters as shall be set forth in an indenture supplemental hereto specifically providing for the delivery to the Trustee of such
Secured Obligations. 
 Section 5. If the Company shall elect either of the alternatives described in Section 4
above, the Company shall deliver to the Trustee: 
 (A) an indenture supplemental to the Original Indenture
(I) together with any appropriate inter-creditor arrangements, whereby such Securities of Series No. 10 then Outstanding shall be secured by the Lien referred to in Section 4 above equally and ratably with all other indebtedness
secured by such Lien or (II) providing for the delivery to the Trustee of Secured Obligations; 
 (B) an
Officer’s Certificate (I) stating that, to the knowledge of the signer, (1) no Event of Default has occurred and is continuing and (2) no event has occurred and is continuing which entitles the secured party under such Lien to
accelerate the maturity of the indebtedness outstanding thereunder and (II) stating the aggregate principal amount of indebtedness issuable, and then proposed to be issued, under and secured by such Lien; and 

(C) an Opinion of Counsel (I) if the Securities of Series No. 10 then Outstanding are to be secured by such
Lien, to the effect that all such Securities then Outstanding are entitled to the benefit of such Lien equally and ratably with all other indebtedness outstanding under such Lien or (II) if Secured Obligations are to be delivered to the Trustee, to
the effect that such Secured Obligations have been duly issued under such Lien and constitute valid obligations, entitled to the benefit of such Lien equally and ratably with all other indebtedness then outstanding under such Lien. 

  
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 Section 6. The Company agrees that for so long as any Securities of Series
No. 10 shall remain Outstanding, and except for the sale of the properties and assets of the Company substantially as an entirety pursuant to Article Eleven of the Original Indenture, and other than assets required to be sold to conform with
governmental requirements, the Company shall not, and shall not permit any of its Subsidiaries to, consummate any Asset Sale, if the aggregate net book value of all such Asset Sales consummated during the four calendar quarters immediately preceding
any date of determination would exceed 15% of the consolidated assets of the Company and its consolidated Subsidiaries as of the beginning of the Company’s most recently ended full fiscal quarter; provided, however, that any such
Asset Sale will be disregarded for purposes of the 15% limitation specified above (i) if any such Asset Sale is in the ordinary course of business, (ii) to the extent that such assets are worn out or are no longer useful or necessary in
connection with the operation of the business of the Company or its Subsidiaries, (iii) to the extent such assets are being transferred to a wholly-owned Subsidiary of the Company, (iv) to the extent any such assets subject to any such
Asset Sale involve transfers of assets of or equity interests in connection with (a) the formation of any joint venture between the Company or any of its Subsidiaries and any other entity, or (b) any project development and acquisition
activities, and (v) if the proceeds thereof (a) are, within 12 months of such Asset Sale, invested or reinvested by the Company or any Subsidiary in a Permitted Business, (b) are used by the Company or a Subsidiary to repay Debt of
the Company or such Subsidiary, or (c) are retained by the Company or its Subsidiaries. Additionally, if prior to any Asset Sale that otherwise would cause the 15% limitation to be exceeded, Moody’s and S&P confirm the then current
long term debt rating of such Securities of Series No. 10 after giving effect to such Asset Sale, such Asset Sale shall also be disregarded for purposes of the foregoing limitations. 

Section 7. So long as any Securities of Series No. 10 shall remain Outstanding, the following event shall be an Event of
Default with respect to the Securities of Series No. 10: the occurrence of a matured event of default, as defined in any instrument of the Company under which there may be issued or evidenced any Debt of the Company, that has resulted in the
acceleration of such Debt in excess of $25,000,000, or any default in payment of Debt in excess of $25,000,000 at final maturity, after the expiration of any applicable grace or cure periods; provided, however, that the waiver or cure
of any such default under any such instrument or Debt shall constitute a waiver and cure of the corresponding Event of Default under the Indenture and the rescission and annulment of the consequences thereof shall constitute a rescission and
annulment of the corresponding consequences under the Indenture. 
 Section 8. So long as any Securities of Series
No. 10 shall remain Outstanding, for purposes of Section 1101(a) of the Original Indenture, “corporation” shall be deemed to refer to a corporation or limited liability company. For all other purposes, the definition of
“corporation” in Section 101 of the Original Indenture shall govern. 
 Section 9. For the purposes
of this Article One, except as otherwise expressly provided or unless the context otherwise requires: 
 (A)
“Asset Sale” shall mean any sale of any assets of the Company or its Subsidiaries including by way of the sale by the Company or any of its Subsidiaries of equity interests in such Subsidiaries. 

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

(D) “Material Subsidiary” means PPL EnergyPlus, LLC, a Delaware limited liability company or PPL Generation,
LLC, a Delaware limited liability company. 
 (E) “Moody’s” means Moody’s Investors Service,
Inc. and its successors and assigns, or absent a successor, or if such entity ceases to rate the Securities of Series No. 10, such other nationally recognized statistical rating organization as the Company may designate by notice to the
Trustee. 
 (F) “Permitted Business” means a business that is the same or similar to the business of
the Company or any Subsidiary as of the date that Securities of Series No. 10 are first authenticated hereunder, or any business reasonably related thereto. 

(G) “Permitted Liens” means 

(i) any Liens existing at December 16, 2011; 

(ii) any vendors’ Liens, purchase money Liens and other Liens on property at the time of acquisition thereof by the
Company and Liens to secure or provide for the construction or improvement of property, provided that no such Lien shall extend to or cover any other property of the Company; 

  
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 (iii) any Liens on cash or securities (other than limited liability company
interests issued by any Material Subsidiary), including any cash or securities on hand or in banks or other financial institutions, deposit accounts and interests in general or limited partnerships; 

(iv) any Liens on the equity interest of any Subsidiary that is not a Material Subsidiary; 

(v) any Liens on property or shares of capital stock, or arising out of any Debt of any corporation existing at the time
the corporation becomes or is merged or consolidated into the Company; 
 (vi) any Liens in connection with the
issuance of tax-exempt industrial development or pollution control bonds or other similar bonds issued pursuant to Section 103(b) of the Internal Revenue Code of 1986, as amended (or any successor provision), to finance all or any part of the
purchase price of or the cost of constructing, equipping or improving property, provided that such Liens are limited to the property acquired or constructed or improved and to substantially unimproved real property on which such construction or
improvement is located; provided, further, that the Company may further secure all or any part of such purchase price or the cost of construction or improvement by an interest on additional property of the Company only to the extent
necessary for the construction, maintenance and operation of, and access to, such property so acquired or constructed or such improvement; 
 (vii) any Liens on contracts, leases and other agreements of whatsoever kind and nature; any Liens on contract rights, bills, notes and other instruments; any Liens on revenues, income and earnings,
accounts, accounts receivable and unbilled revenues, claims, credits, demands and judgments; any Liens on governmental and other licenses, permits, franchises, consents and allowances; and any Liens on patents, patent licenses and other patent
rights, patent applications, trade names, trademarks, copyrights, claims, credits, choses in action and other intangible property and general intangibles including, but not limited to, computer software; 

(viii) any Liens securing Debt which matures less than one year from the date of issuance or incurrence thereof and is not
extendible at the option of the issuer, and any refundings, refinancings and/or replacements of any such Debt by or with similar secured Debt; 
 (ix) any Liens on automobiles, buses, trucks and other similar vehicles and movable equipment; vessels, boats, barges and other marine equipment; airplanes, helicopters, aircraft engines and other flight
equipment; parts, accessories and supplies used in connection with any of the foregoing; 

  
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 (x) any Liens on furniture and furnishings, and computers, data processing,
data storage, data transmission, telecommunications and other equipment and facilities, equipment and apparatus, which, in any case, are used primarily for administrative or clerical purposes; 

(xi) any Liens on property which is the subject of a lease agreement designating the Company as lessee and all right,
title and interest of the Company in and to such property and in, to and under such lease agreement, whether or not such lease agreement is intended as security; 

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

(xiii) any Liens granted in connection with extending, renewing, replacing or refinancing, in whole or in part, the Debt
secured by liens described in the foregoing clauses (i) through (xii), to the extent of such Debt so extended, renewed, replaced or refinanced. 
 (H) “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and its successors and assigns, or absent a successor, or if such entity
ceases to rate the Securities of Series No. 10, such other nationally recognized statistical rating organization as the Company may designate by notice to the Trustee. 

(I) “Subsidiary” means any corporation a majority of the outstanding Voting Stock of which is owned, directly or
indirectly, by the Company or by one or more other Subsidiaries of the Company. 
 (J) “Voting Stock”
means stock (or other interests) of a corporation having voting power for the election of directors, managers or trustees thereof, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency.

 ARTICLE TWO 
 Miscellaneous Provisions 
 Section 1. This Supplemental
Indenture No. 11 is a supplement to the Original Indenture. As supplemented by this Supplemental Indenture No. 11, the Indenture is in all respects ratified, approved and confirmed, and the Original Indenture and this Supplemental
Indenture No. 11 shall together constitute one and the same instrument. 
 Section 2. The recitals contained in
this Supplemental Indenture No. 11 shall be taken as the statements of the Company and the Trustee assumes no responsibility for their correctness and makes no representations as to the validity or sufficiency of this Supplemental Indenture
No. 11. 

  
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 Section 3. This instrument may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture
No. 11 to be duly executed as of the day and year first written above. 
  

					
	PPL ENERGY SUPPLY, LLC
		
	By:	 	 /s/ RUSSELL R. CLELLAND

		 	Name: Russell R. Clelland
		 	Title: Assistant Treasurer
	
	 THE BANK OF NEW YORK MELLON
     as Trustee

		
	By:	 	 /s/ TEISHA WRIGHT

		 	Name: Teisha Wright
		 	Title: Senior Associate

  
 10Officer's Certificate

 Exhibit 4(b) 
 OFFICER’S CERTIFICATE 
 (Under Section 301 of the Indenture of

 PPL Energy Supply, LLC) 
 The undersigned Russell R. Clelland, Assistant Treasurer of PPL ENERGY SUPPLY, LLC (the “Company”), in accordance with Section 301 of the Indenture, dated as of
October 1, 2001, as heretofore supplemented (the “Indenture,” capitalized terms used herein and not defined herein having the meanings specified in the Indenture), of the Company to The Bank of New York Mellon, as Trustee (the
“Trustee”), does hereby establish for the series of Securities established in Supplemental Indenture No. 11, dated as of December 1, 2011 (the “Supplemental Indenture”), the following terms and characteristics (the
lettered clauses set forth below corresponding to the lettered clauses of Section 301 of the Indenture): 

(a) the title of the Securities of such series shall be “Senior Notes, 4.60% Series due 2021” (the
“Notes”); 
 (b) the aggregate principal amount of Notes which may be authenticated and delivered under
the Indenture shall be limited to $500,000,000, except as contemplated in Section 301(b) and the last paragraph of Section 301 of the Indenture; 
 (c) interest on the Notes shall be payable as provided in the form of Note attached hereto and hereby authorized and approved; 

(d) the date or dates on which the principal of the Notes shall be payable shall be as provided in the form of Note
attached hereto and hereby authorized and approved; the Company shall not have the right to extend the Maturity of the Notes, as contemplated by Section 301(d) of the Indenture; 

(e) the Notes shall bear interest as provided in the form of Note attached hereto and hereby authorized and approved, and
the Interest Payment Dates and Regular Record Dates shall be such dates as are specified in such form; the Company shall not have the right to extend any interest payment periods for the Notes, as contemplated by Sections 301(e) and 312 of the
Indenture; 

 (f) the Corporate Trust Office of the Trustee in New York, New York shall be
the office or agency of the Company at which the principal of, and any premium and interest on, the Notes shall be payable, at which registration of transfer and exchange of Notes may be effected and at which notices and demands to or upon the
Company in respect of the Notes and the Indenture may be served; provided, however, that the Company reserves the right to change, by one or more Officer’s Certificates supplemental to this Officer’s Certificate, any such
office or agency; and provided, further, that the Company reserves the right to designate, by one or more Officer’s Certificates supplemental to this Officer’s Certificate, its principal office in Allentown, Pennsylvania, as
any such office or agency; the Trustee shall be the Security Registrar and Paying Agent for the Notes; provided, that the Company reserves the right, by one or more Officer’s Certificates supplemental to this Officer’s Certificate,
to designate a different Security Registrar or a different or an additional Paying Agent (which in each case, may be the Company or any Affiliate of the Company) and to remove any Security Registrar or Paying Agent; 

(g) the Notes shall be redeemable, in whole or in part, at the option of the Company as and to the extent provided in the
form of Note attached hereto and hereby authorized and approved; 
 (h) [not applicable]; 

(i) the Notes shall be issued in denominations of $1,000 and integral multiples thereof, unless otherwise authorized by
the Company; 
 (j) [not applicable]; 

(k) [not applicable]; 
 (l) [not applicable]; 
 (m) [not applicable]; 

(n) [not applicable]; 
 (o) reference is hereby made to the provisions of the Supplemental Indenture for an Event of Default in addition to those specified in Section 801 of the Indenture, and for certain covenants of the
Company for the benefit of the Holders of the Notes; 
 (p) [not applicable]; 

(q) the only obligations or instruments which shall be considered Eligible Obligations in respect of the Notes shall be
Government Obligations; and the provisions of Section 701 of the Indenture and Section 2 of Article One of Supplemental Indenture No. 11 shall apply to the Notes; 

 (r) the Notes may be issued in global form (the “Global Notes”)
and the depository for the Global Notes shall initially be The Depository Trust Company (“DTC”); provided, that the Company reserves the right to provide for another depository, registered as a clearing agency under the Exchange
Act, to act as depository for the Global Notes (DTC and any such successor depository, the “Depositary”); beneficial interests in Notes issued in global form may not be exchanged in whole or in part for individual certificated Notes in
definitive form, and no transfer of a Global Note in whole or in part may be registered in the name of any Person other than the Depositary or its nominee except that 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, the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Notes, will authenticate and deliver Notes in definitive certificated form in an aggregate principal amount equal
to the principal amount of the Global Note representing such Notes in exchange for such Global Note, such definitive Notes to be registered in the names provided by the Depositary; each Global Note (i) shall represent and shall be denominated
in an amount equal to the aggregate principal amount of the outstanding Notes to be represented by such Global Note, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the
Depositary, its nominee, any custodian for the Depositary or otherwise pursuant to the Depositary’s instruction and (iv) shall bear a legend restricting the transfer of such Global Note to any person other than the Depositary or its
nominee; none of the Company, the Trustee, any Paying Agent or any Authenticating Agent will have any responsibility or liability for any aspect of the records relating to, or payments made on account of, beneficial ownership interests in a Global
Note or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests; 

(s) [not applicable]; 
 (t) reference is made to clause (r) above; no service charge shall be made for the registration of transfer or exchange of Notes; provided, however, that the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in connection with the exchange or transfer; 
 (u) [not applicable]; and 

 (v) except as otherwise determined by the proper officers of the Company and
communicated to the Trustee in a Company Order or as established in one or more Officers’ Certificates supplemental to this Officer’s Certificate, the Notes shall be substantially in the form of Note attached hereto, which form is hereby
authorized and approved, and shall have such further terms as are set forth in such form of Note. 

 IN WITNESS WHEREOF, I have hereunto signed my name this 16th day of December, 2011.

  

	
	PPL ENERGY SUPPLY, LLC
	
	 /s/ RUSSELL R. CLELLAND

	Name: Russell R. Clelland
	Title: Assistant Treasurer

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