Document:

EX-10.4

 Exhibit 10.4 

Execution Version 

TRANSITION SERVICES AGREEMENT 

by and between 
 PPL
CORPORATION 
 and 

PPL ENERGY SUPPLY, LLC 

dated as of 

June 1, 2015 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE I
	  			
	 TRANSITION SERVICES
	  			
			
	 1.1.
	  	Transition Services; TSA Releases	  	 	1	  
	 1.2.
	  	Period Transition Services Will Be Provided	  	 	3	  
	 1.3.
	  	Term	  	 	3	  
	 1.4.
	  	Commingling of Assets	  	 	3	  
		
	 ARTICLE II
	  			
	 COMPENSATION FOR TRANSITION SERVICES
	  			
			
	 2.1.
	  	Fees	  	 	3	  
	 2.2.
	  	Payment Terms	  	 	3	  
	 2.3.
	  	Audit Rights	  	 	4	  
	 2.4.
	  	Dispute Resolution	  	 	4	  
	 2.5.
	  	Cooperation, Information and Access; Monthly Meeting	  	 	5	  
	 2.6.
	  	Additional Resources	  	 	5	  
	 2.7.
	  	Third Party Consents	  	 	5	  
	 2.8.
	  	Energy Supply Assets and Separation Costs	  	 	6	  
		
	 ARTICLE III
	  			
	 DISCLAIMERS; LIMITATION OF LIABILITY; INDEMNIFICATION
	  			
			
	 3.1.
	  	Disclaimers	  	 	6	  
	 3.2.
	  	Limitation of Liability	  	 	7	  
	 3.3.
	  	Indemnification	  	 	7	  
		
	 ARTICLE IV
	  			
	 TERMINATION
	  			
			
	 4.1.
	  	Termination of Transition Services and Agreement for Convenience	  	 	8	  
	 4.2.
	  	Unavoidable Delays	  	 	8	  
	 4.3.
	  	Cancellation Costs	  	 	8	  
	 4.4.
	  	Survival Upon Expiration or Termination	  	 	8	  
	 4.5.
	  	Actions Upon Termination	  	 	9	  
		
	 ARTICLE V
	  			
	 NOTICES AND DEMANDS
	  			
			
	 5.1.
	  	Notices	  	 	9	  

  
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	 ARTICLE VI
				
	 MISCELLANEOUS
				
			
	 6.1.
		Relationship of the Parties		 	10	  
	 6.2.
		Employees		 	10	  
	 6.3.
		Assignment		 	10	  
	 6.4.
		Confidentiality		 	11	  
	 6.5.
		Severability		 	11	  
	 6.6.
		Third Party Beneficiaries		 	11	  
	 6.7.
		Governing Law		 	11	  
	 6.8.
		Consent to Jurisdiction; Waiver of Jury Trial		 	11	  
	 6.9.
		Executed in Counterparts		 	12	  
	 6.10.
		Construction		 	12	  
	 6.11.
		Entire Agreement		 	12	  
	 6.12.
		Amendments and Waivers		 	12	  
	 6.13.
		Remedies Cumulative		 	13	  
	 6.14.
		Taxes		 	13	  

  

  
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 Exhibits 
  

			
	Exhibit A		Form of TSA Release
		
	Exhibit B		Compensation for Transition Services

 TRANSITION SERVICES AGREEMENT 

This Transition Services Agreement (the “Agreement”), dated as of June 1, 2015, is entered into by and between PPL
Corporation, a Pennsylvania corporation (“PPL”), and PPL Energy Supply, LLC, a Delaware limited liability company (“Energy Supply”). Both PPL and Energy Supply may be individually referred to herein as a
“Party” or collectively as the “Parties.” 
 WHEREAS, PPL and Energy Supply are parties to that certain
Transaction Agreement, dated as of June 9, 2014 (the “Transaction Agreement”), and that certain Separation Agreement, dated as of June 9, 2014 (the “Separation Agreement”); 

WHEREAS, capitalized terms used and not otherwise defined herein shall have the respective meanings given such terms in the Transaction
Agreement or, if not defined therein, the Separation Agreement; 
 WHEREAS, as contemplated by Section 8.15 of the Transaction
Agreement, PPL is willing to provide (or cause to be provided) to the Combined Group, and Energy Supply is willing to provide (or cause to be provided) to the Parent Group, certain transition services (as further described below, the
“Transition Services”) on the terms and conditions set forth herein; and 
 WHEREAS, (i) references to
“Provider” herein shall mean (A) PPL or its designated affiliate with respect to Transition Services provided (or caused to be provided) to Energy Supply or its designated affiliate, and (B) Energy Supply or its designated
affiliate with respect to Transition Services provided (or caused to be provided) to PPL or its designated affiliate; and (ii) references to “Recipient” herein shall mean (A) Energy Supply or its designated affiliate with
respect to Transition Services provided (or caused to be provided) by PPL or its designated affiliate, and (B) PPL or its designated affiliate with respect to Transition Services provided (or caused to be provided) by Energy Supply; 

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, the Parties hereto agree as follows: 

ARTICLE I 
 TRANSITION
SERVICES 
 1.1 Transition Services; TSA Releases. 

(a) The Transition Services to be provided hereunder shall be set forth in more detail in individual TSA Releases (each, a “TSA
Release”), which shall set forth the Transition Services to be provided pursuant thereto in a manner and level of detail reasonably satisfactory to both the Provider and the Recipient thereunder. The TSA Releases shall be numbered
sequentially and shall be in substantially the form of Exhibit A attached hereto. 
 (b) Each TSA Release shall specify if the
Provider and/or Recipient thereunder is to be one or more designated affiliates of the Parties. In such event, references herein to “Provider” and “Recipient” shall mean such designated affiliate(s), provided that it is
understood and agreed that such designated affiliates shall not thereby become parties to this Agreement or the TSA Release and each Party shall be responsible to the other Party and its respective affiliates (but not to any third parties) for the
acts or omissions of their respective designated affiliates as Provider or Recipient, as applicable, pursuant to this Agreement. 

 (c) Where PPL or its designated affiliate is the Provider hereunder, the Provider shall perform,
or cause to be performed, the Transition Services in a manner (including quality) substantially consistent with, and in no event more extensive in type and scope than, the provision of similar or comparable services provided by the Parent Group to
the Energy Supply Group prior to the date of the Transaction Agreement (it being understood that the provision by the Parent Group of Transition Services to any member of the Combined Group that was not a Subsidiary of Parent prior to the date of
the Transaction Agreement, and services performed in connection with the consummation of the Transactions, shall not be deemed to be more extensive in type or scope than the provision of similar or comparable services by the Parent Group to the
Energy Supply Group prior to the date of the Transaction Agreement). Where Energy Supply or its designated affiliate is the Provider hereunder, the Provider shall perform, or cause to be performed, the Transition Services in a manner (including
quality) substantially consistent with, and in no event more extensive in type and scope than, the provision of similar or comparable services provided by Energy Supply Employees (as defined in the Employee Matters Agreement) to the Parent Group
prior to the date of the Transaction Agreement (it being understood that services performed in connection with the consummation of the Transactions shall not be deemed to be more extensive than the provision of similar or comparable services by such
employees to the Parent Group prior to the date of the Transaction Agreement). 
 (d) During the Term (as defined below), the Provider shall
consider in good faith any reasonable requests of Recipient for the provision of additional transition services not provided for under existing TSA Releases. To the extent the Parties reach agreement on the provision of such additional services or
any other revisions to an existing TSA Release, the Parties shall enter into a new or revised TSA Release, which shall be effective when signed by an Authorized Representative and the TSA Coordinator (as defined below) of each Party. 

(e) If requested by the Recipient, the Provider shall include in the TSA Release a good faith estimate of the Provider Cost (as defined in
Section 2.1 below) associated with the applicable Transition Services (to the extent such costs are reasonably estimable); provided, however that the provision of such estimate shall not be deemed to cap the Provider’s right
to payment for such Transition Services at the estimate amount. 
 (f) Each TSA Release shall provide the name and contact details of one or
more persons who are authorized to coordinate the provision of the applicable Transition Services for each Party (each such person with respect to the applicable TSA Release, the “TSA Coordinator”). The TSA Coordinator shall have no
authority to amend or waive any provision of this Agreement or, except as specifically set forth therein, the TSA Release. 
 (g) In the
event of any inconsistency between a TSA Release and the terms of this Agreement, the terms of this Agreement shall control unless expressly agreed in a separate writing signed by an Authorized Representative of the Party against whom enforcement is
sought. 
 (h) For purposes of this Agreement, Authorized Representative shall mean (i) any authorized executive officer of PPL and
Energy Supply, respectively; and (ii) with respect to TSA Releases or other matters, those individuals as designated in a notice pursuant to Section 5.1 hereof. 

  
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 1.2 Period Transition Services Will Be Provided. Transition Services shall be provided
beginning as of the Closing Date and shall continue through the expiration of the term relating to each Transition Service as set forth in the applicable TSA Release, unless (a) the Recipient terminates a particular Transition Service in
accordance with the terms and conditions of this Agreement, (b) otherwise mutually agreed by the Parties in writing, or (c) this Agreement is terminated pursuant to its terms at an earlier date. If no expiration date is stated, the
Transition Service will continue for the Term (as defined below). 
 1.3 Term. The term of this Agreement (the
“Term”) shall commence as of the Closing Date and shall continue until the date that is twenty four (24) months from the Closing Date (the “Expiration Date”), subject to earlier termination pursuant to
Article IV or written agreement otherwise by the Parties. 
 1.4 Commingling of Assets. To the extent a Provider shall have
charge or possession of any of the Recipient’s cash or cash equivalents in connection with the provision of the Transition Services, such Provider shall (i) hold such cash or cash equivalents in the name and for the benefit of the
Recipient and (ii) separately maintain, and not commingle, such cash or cash equivalents with any cash or cash equivalents of the Provider, its affiliates or any other person. 

ARTICLE II 
 COMPENSATION
FOR TRANSITION SERVICES 
 2.1 Fees. As consideration for the Transition Services received, the Recipient shall pay to the
Provider for each Transition Service an amount equal to the cost of providing such Transition Services, in each case, in accordance with PPL’s cost allocation methodology in effect on the date of the Transaction Agreement (without subsidization
of the Recipient’s business operations or margin to the Provider) as further set forth on Exhibit B attached hereto (the “Provider Cost”); provided that (i) to the extent the Transition Services are provided
by a franchised public utility that has captive customers or that owns or provides transmission service the price of such Transition Services shall be the higher of Provider Cost or market as described in 35 C.F.R. § 35.44 (b)(2),
and (ii) to the extent the Transition Services are provided to a franchised public utility that has captive customers or that owns or provides transmission service the price of such Transition Services shall be the lower of Provider Cost
or market as described in 35 C.F.R. § 35.44(b)(2). The Parties shall specify in the applicable TSA Release whether Transition Services are expected to be provided by or to a franchised public utility Affiliate, and shall use commercially
reasonable efforts to cause the Transition Services to be provided by or to Affiliates that are not franchised public utilities. 
 2.2
Payment Terms. The Provider shall present the Recipient (on account of Transition Services provided to such other Party as Recipient) with monthly invoices for the Transition Services it provides. The format of such invoices shall include,
without limitation, a brief description of the applicable Transition Service, the billing period, applicable fees, and such other information as the applicable Recipient(s) may reasonably request to verify the amount and allocation of costs for the
Transition Services. The Recipient shall pay the undisputed amount of the monthly invoiced amount within thirty (30) days after the date such monthly invoice was 

  
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received. If the Recipient in good faith disputes any portion of the amount due on any invoice, the Recipient shall notify the Provider in writing of the nature and basis of the dispute as soon
as commercially reasonable, but no later than one hundred eighty (180) days from the date of such invoice. 
 2.3 Audit Rights.
During the Term, and for a period of six (6) months thereafter, the Recipient shall have the right, at its own costs and expense, to conduct or cause to be conducted, a reasonable audit of the data, books and records and other pertinent
information of the Provider concerning the provision of Transition Services hereunder, including without limitation, for purposes of disputing the calculation of any fees charged under this Agreement or for preparing financial statements. Without
limiting the generality of the foregoing, in connection with the exercise of the Recipient’s audit right, the Provider shall also provide the Recipient with reasonable access to the Provider’s pertinent personnel and third-party financial,
accounting and tax advisors and allow Recipient to perform testing procedures, including inspection, observation and inquiries related to the design and operations of the controls related to the processes performed by the Provider; provided
that the Recipient (including its personnel) and its third-party advisors shall not be required to provide information to the Recipient that (x) could reasonably be expected to result in competitive harm to the Provider as a result of such
disclosure or (y) would waive any legal privilege. The Recipient shall provide at least ten (10) Business Day’s advance notice of any such audit, and shall conduct such audit during normal business hours and in such a manner so as to
reasonably minimize disruptions to the Provider and its Affiliates. If the Provider objects to the scope of any such audit requested, the Parties shall work together, in good faith, to mutually reach agreement on the proper scope of such audit. 

2.4 Dispute Resolution. If the Recipient raises a dispute with respect any charges under this Agreement within the period set forth in
Section 2.2, then the Parties shall negotiate in good faith and attempt to resolve the dispute. Should such negotiations fail to result in an agreement within sixty (60) days after receipt by the Provider of such written dispute
from the Recipient, then the matter shall be submitted to a mutually agreeable independent arbitrator which may, but does not necessarily have to be, the Independent Accountant. The arbitrator will deliver to the Parties a written determination
(along with a statement of reasons therefor) of the amounts payable under this Agreement with respect to any such dispute within 30 days (or such other time period as may be agreed) following the submission of the dispute to the arbitrator, which
determination shall be final, binding non-appealable and conclusive on the Parties. The determination of the arbitrator shall be based solely on presentations and written materials submitted by the Provider and the Recipient and the terms of this
Agreement and not on the basis of an independent review. The Recipient and the Provider will, and will cause their respective representatives to, cooperate and assist the arbitrator as reasonably requested by the arbitrator in the conduct of the
review and resolution referred to in this Section 2.4, including the making available, to the extent necessary, books, records, work papers, and personnel relevant to the dispute. Each Party to the dispute shall pay its own costs and
expenses incurred under this Section 2.4. All fees and expenses relating to the work, if any, to be performed by the arbitrator pursuant to this Section 2.4 will be allocated between the Parties to the dispute in inverse
proportion as each shall prevail in respect of the dollar amount of disputed items so submitted (as finally determined by the arbitrator). Any disputed amount determined by the Provider and Recipient, or if submitted to the arbitrator and determined
by the arbitrator, to be payable to the Provider, together with interest thereon at the rate of ten percent (10%) per annum from the thirtieth (30th) day after the 

  
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applicable invoice was received by the Recipient through the date of payment, shall be due and payable to the Provider by wire transfer of immediately available funds to such account or accounts
as shall be specified by the Provider within three (3) Business Days after such amounts are finally determined as provided in this Section 2.4. 

2.5 Cooperation, Information and Access; Monthly Meeting. 

(a) The Parties will cooperate in good faith in all matters relating to the provision and receipt of the Transition Services. Without limiting
the generality of the foregoing, the Recipient will provide (or cause to be provided) to the applicable Provider in a timely manner, access to facilities and information required or reasonably requested by the Provider in connection with providing
the Transition Services; provided, however, the Recipient shall not be required to provide access to information that (x) could reasonably be expected to result in competitive harm to the Provider as a result of such disclosure,
(y) would be in violation of applicable Law or (z) would waive any legal privilege. 
 (b) The TSA Coordinators shall conduct a
joint monthly meeting at a mutually agreed time to discuss, inter alia, cost/quality of Transition Services, scope changes, and coordination of activities including spin-down, current and future projects; provided, however, each such
meeting may be canceled in advance upon the mutual agreement of the applicable TSA Coordinators. 
 2.6 Additional Resources. Except
as may be required to comply with its mitigation obligations under Section 4.2, in providing the Transition Services, the Provider is not obligated to (i) hire any additional employees, (ii) maintain the employment of any
specific employee, (iii) purchase, lease, or license any additional equipment or materials, or (iv) enter into new contracts or extend current contracts, except as otherwise provided in the Separation Agreement, the Transaction Agreement
or the Employee Matters Agreement. The Provider may engage one or more subcontractors to provide all or any portion of the Transition Services, provided that PPL or Energy Supply, as applicable, remains directly responsible to the other (but
not to third parties) for the obligations of it or its designated affiliate as Provider hereunder. 
 2.7 Third Party Consents. 

(a) To the extent that the provision of any Transition Services to any Recipient under this Agreement requires any new or additional third
party consents, licenses, rights, approvals or permissions by or on behalf of the Provider (the “Third Party Consents”) for the Recipient to receive and enjoy the full benefit of the Transition Services, and to use any deliverables
provided in connection therewith, the obligation to provide such Transition Services are contingent upon receipt by the Provider of such Third Party Consents, it being acknowledged and understood that those third parties are not bound to this
Agreement. Each TSA Release will set forth a list of all identified material Third Party Consents required for performance of the Transition Services. 

(b) Any fees or other reasonable out-of-pocket costs to obtain any Third Party Consents (the “TSA Consent Fees”) necessary to
separate assets, including but not limited to licenses and data, shall be paid (or reimbursed) by the Provider. Any TSA Consent Fees necessary for the Provider to provide Transition Services to the Recipient shall, except as otherwise provided in
the Separation Agreement, the Transaction Agreement or the Employee Matters Agreement, 

  
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be paid (or reimbursed) by the Recipient as part of the applicable fees; provided that, (i) the Provider shall use reasonable efforts to provide the Recipient with at least ten
(10) Business Days written notice before the payment of any proposed TSA Consent Fees; (ii) the Provider shall use reasonable efforts to fulfill its obligations under this Agreement in a cost-efficient manner and without the incurrence of
TSA Consent Fees; and (iii) the Recipient may decline all or part of any applicable Transition Services as necessary to avoid such TSA Consent Fees. Without limitation of any of its obligations under the Separation Agreement, the Transaction
Agreement or the Employee Matters Agreement, the Provider shall use commercially reasonable efforts to obtain such Third Party Consents as promptly as practicable, and the Recipient shall reasonably assist the Provider in such efforts. The Provider
shall provide the Recipient with copies of the vendor invoices for such Third Party Consents in reasonably sufficient detail to verify the terms of such Third Party Consents. No Provider shall have any obligation to commence performance of any
Transition Service until the requisite Third Party Consent has been obtained. If the Provider fails to obtain the requisite Third Party Consent for any Transition Service after commencement of such service, the Provider shall use commercially
reasonable efforts to give the Recipient at least thirty (30) days’ notice before discontinuing the Transition Service for which the requisite Third Party Consent was not obtained, and, for purposes of Section 5.12(a) of the
Transaction Agreement, such discontinued Transition Service shall thereafter not be considered a service provided pursuant to this Agreement. 

2.8 Energy Supply Assets and Separation Costs. To the extent that any of the Transition Services provided to Energy Supply or its
designated affiliates (as Recipient) by or on behalf of PPL or its designated affiliate (as Provider) include any Energy Supply Assets, Spin Transactions, Separation Costs and/or Shared Contracts (or other items the cost of which are to be borne by
PPL or Parent pursuant to the Separation Agreement, the Transaction Agreement and/or the Employee Matters Agreement), Energy Supply or its designated affiliates (as Recipient) may, in accordance with and subject to Section 2.2, dispute
the amount on any invoice related to such Transition Services to reduce or adjust the net amounts paid or payable by such Recipient to such Provider for such Transition Services so that PPL bears the costs of such Energy Supply Assets, Spin
Transactions, Separation Costs, Shared Contracts and/or other items, in each case in accordance with, and solely to the extent provided for in, the Separation Agreement, the Transaction Agreement and/or the Employee Matters Agreement. 

ARTICLE III 

DISCLAIMERS; LIMITATION OF LIABILITY; INDEMNIFICATION 

3.1 Disclaimers. EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT, THE TRANSITION SERVICES AND ACCESS TO THE PARTIES’ AND THEIR
RESPECTIVE AFFILIATES’ COMPUTER AND OTHER SYSTEMS OR OTHER FACILITIES OR ASSETS ARE PROVIDED ON AN “AS IS” BASIS, WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE OR OTHER WARRANTIES, CONDITIONS, GUARANTEES OR REPRESENTATIONS, WHETHER EXPRESS OR IMPLIED. EXCEPT AS OTHERWISE PROVIDED IN SECTION 3.3, THE PROVIDER’S SOLE AND EXCLUSIVE RESPONSIBILITY TO THE RECIPIENT AND ITS AFFILIATES, AND
THEIR SUCCESSORS AND ASSIGNS, FOR ERRORS OR OMISSIONS IN THE TRANSITION SERVICES SHALL BE TO FURNISH CORRECT INFORMATION OR RE-PERFORM THE RELEVANT SERVICES AT NO ADDITIONAL COST OR EXPENSE UPON NOTICE OF SUCH ERROR OR OMISSION FROM THE RECIPIENT
DURING THE TERM. 

  
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 3.2 Limitation of Liability. NO PARTY NOR ANY STOCKHOLDER, OFFICER, DIRECTOR, AGENT, OTHER
REPRESENTATIVE, OR AFFILIATE THEREOF SHALL BE LIABLE TO ANY OTHER PARTY, ANY STOCKHOLDER, OFFICER, DIRECTOR, AGENT, OTHER REPRESENTATIVE, OR AFFILIATE THEREOF OR ANY OTHER THIRD PERSON FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL
OR INDIRECT DAMAGES OR LOST PROFITS, OR LOSSES CALCULATED BY REFERENCE TO ANY MULTIPLE OF EARNINGS OR EARNINGS BEFORE INTEREST, TAX, DEPRECIATION OR AMORTIZATION (OR ANY OTHER VALUATION METHODOLOGY) WHETHER BASED ON CONTRACT, TORT, STRICT LIABILITY,
OTHER LAW OR OTHERWISE AND WHETHER OR NOT ARISING FROM THE OTHER PARTY’S SOLE, JOINT OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT, IN EACH CASE, ARISING IN CONNECTION WITH THIS AGREEMENT OR ANY ACTS OR OMISSIONS RELATING TO THE
TRANSITION SERVICES, WHETHER LIABILITY IS BASED ON CONTRACT, TORT, STRICT LIABILITY OR OTHER FAULT FOR ANY MATTER RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY; PROVIDED, HOWEVER, THAT IF A PARTY IS HELD LIABLE TO
A THIRD PARTY FOR ANY OF SUCH DAMAGES AND THE OTHER PARTY IS OBLIGATED TO INDEMNIFY SUCH PARTY FOR THE MATTER THAT GAVE RISE TO SUCH DAMAGES, THEN SUCH INDEMNIFYING PARTY SHALL BE LIABLE FOR, AND OBLIGATED TO REIMBURSE THE OTHER PARTY FOR, THE TOTAL
AMOUNT OF SUCH DAMAGES HOWSOEVER CHARACTERIZED. 
 3.3 Indemnification. (a) Recipient will indemnify, defend and hold harmless
Provider and its Affiliates and their respective stockholders, members, managers, officers, directors, agents and other representatives (collectively, the “Provider Indemnitees”) from any and all claims, demands, suits, losses,
liabilities, penalties, actions and damages(“Claims”) brought against such Provider Indemnitees instituted by a third party directly arising out of or resulting from the provision and use of Transition Services hereunder (other than such
Claims resulting from gross negligence or willful or intentional misconduct on the part of Provider or its Affiliates under this Agreement). 

(b) Energy Supply will indemnify, defend and hold harmless PPL and its Affiliates and their respective stockholders, members, managers,
officers, directors, agents, other representatives (collectively, the “PPL Indemnitees”) from any and all claims, demands, suits, losses, liabilities, penalties, actions and damages suffered, paid or incurred by such PPL Indemnitees
and arising out of or resulting from any gross negligence or willful or intentional misconduct on the part of Energy Supply or its Affiliates under this Agreement. 

(c) PPL will indemnify, defend and hold harmless Energy Supply and its Affiliates and their respective stockholders, members, managers,
officers, directors, agents, other representatives (collectively, the “Energy Supply Indemnitees”) from any and all claims, demands, suits, losses, liabilities, penalties, actions and damages suffered, paid or incurred by such
Energy Supply Indemnitees and arising out of or resulting from any gross negligence or willful or intentional misconduct on the part of PPL or its Affiliates under this Agreement. 

  
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 (d) Except in the case of fraud or breach of Section 6.4, the exclusive remedy for
any Party for monetary damages arising from a breach of this Agreement shall be the indemnification provided under this Section 3.3. 

ARTICLE IV 
 TERMINATION

 4.1 Termination of Transition Services and Agreement for Convenience. Recipient shall have the right to terminate any
Transition Service, in whole or in part, upon sixty (60) days prior written notice to the Provider, unless the individual applicable TSA Release specifies otherwise. Provider may not terminate any Transition Service, in whole or in part, during
the Term unless such right of termination by Provider is specifically provided for in the applicable TSA Release and provides for termination upon a specified number of days of advance notice. 

4.2 Unavoidable Delays. Provider shall not be liable for delays or interruptions in performing its obligations (other than obligations
to make monetary payments) primarily arising from any act, delay or failure to act on the part of any governmental authority; acts of God; disruptions such as fire or explosions; failure or delay beyond Provider’s reasonable control in securing
necessary materials, services or facilities; labor difficulty such as strikes, slow-downs or shortages; or other causes beyond Provider’s reasonable control. In the event of any occurrence which Provider determines will prevent or cause a
significant delay in its performance, Provider shall notify Recipient promptly in writing. Provider shall use reasonable efforts to overcome the circumstances created by such event as quickly as possible and to mitigate the impact of such
circumstances on its provision of Transition Services hereunder, and shall notify Recipient promptly in writing when such circumstances have ceased to affect the provision of Transition Services. So long as such circumstances persist, Recipient
shall have the right to terminate any Transition Service in whole or in part upon 30 days prior written notice to Provider. 
 4.3
Cancellation Costs. Except as otherwise provided in the Separation Agreement, the Transaction Agreement or the Employee Matters Agreement, in the event of early termination by Recipient, other than pursuant to Section 4.2,
Recipient shall be liable for all costs and expenses incurred by Provider to the extent directly attributable thereto and which would not have been incurred but for the provision of such Transition Services, including fees for early termination or
cancellation of contracts (provided such contracts were extended for the benefit of the Recipient for purposes of providing Transition Services) and payments under employee retention agreements for key employees (provided such
retention agreements were approved in writing by Recipient in advance). In the event of termination by Provider if permitted by the applicable TSA Release, Recipient shall not be responsible for any such costs. 

4.4 Survival Upon Expiration or Termination. The provisions of Article III (Disclaimers; Limitation of Liability;
Indemnification), Article V (Notices and Demands) and Article VI (Miscellaneous) shall survive the termination or expiration of this Agreement unless otherwise agreed to in writing by both Parties; provided that, the provisions
of Article II (Compensation for Transition Services) shall survive such termination and the Recipient shall remain liable to the Provider for all amounts payable thereunder in respect of Transition Services provided prior to the effective
date of such termination. 

  
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 4.5 Actions Upon Termination. Except as otherwise provided in the Separation Agreement,
the Transaction Agreement or the Employee Matters Agreement, upon the termination of any Transition Service with respect to which either Party holds equipment, books, records, files or any other documents or other property owned by (or required by
the Transaction Agreement or any Other Transaction Document to be delivered to) the other Party, the Party in possession of such property (including intellectual property) shall promptly return or deliver (or cause to be returned or delivered) all
such property of the other Party. Each Party shall bear its reasonable costs and expenses associated with the return thereof, except as otherwise provided in the Transaction Agreement or the Other Transaction Documents. In addition, upon the
termination of any of the Transition Services which involved the compilation of records including data on the Provider’s computer systems, the Provider will use commercially reasonable efforts to promptly deliver (or to cause to be promptly
delivered) such records to the Recipient. Electronic records will be provided on magnetic media in readable format mutually acceptable to the Parties, which format will be capable of being read by a computer mutually acceptable to the Parties, all
data files maintained by Provider to the extent that they contain information which is the property of Recipient (or otherwise required to be delivered to the Recipient pursuant to the Transaction Agreement or any Other Transaction Document),
together with printed file descriptions sufficient to identify such data files and their contents and structure. The Recipient will pay all of the Provider’s reasonable costs and expenses associated with the provision and delivery of such
material, except as otherwise provided in the Transaction Agreement or the Other Transaction Documents. 
 ARTICLE V 

NOTICES AND DEMANDS 
 5.1
Notices. All notices, requests and other communications hereunder shall be in writing (including wire or similar writing) and shall be sent, delivered mailed or addressed: 

(a) if to Energy Supply, to: 

Talen Energy Corporation 
 Legal
Department 
 835 W. Hamilton Street 

Allentown, Pennsylvania 18101 

Attention: General Counsel 

with a copy to: 
 PPL Energy
Supply, LLC 
 835 W. Hamilton Street 

Allentown, Pennsylvania 18101 

Attention: Cheryl A. Dally 

  
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 (b) if to PPL, to: 

PPL Corporation 
 Office of
General Counsel 
 Two North Ninth Street 

Allentown, Pennsylvania 18101 

Attention: General Counsel 

with a copy to: 
 PPL
Corporation 
 Two North Ninth Street 

Allentown, Pennsylvania 18101 

Attention: Timothy D. Stephens 

All notices, requests and other communications to be given or delivered to a Party under or by reason of the provisions of this Agreement
shall be in writing (including in electronic form) and shall be deemed to have been given (i) if personally delivered, delivered by express courier service of national standing (with charges prepaid), or deposited in the United States mail,
first class postage prepaid, on the date of physical receipt or (ii) if delivered by facsimile or electronic mail, if delivered (and, in each case, receipt confirmed in writing) on or before 5:00 p.m. Philadelphia time on a Business Day, and if
delivered after 5:00 p.m. Philadelphia time, or during a non-Business Day, on the following Business Day, in each case, to such Party at the address set forth above. 

ARTICLE VI 

MISCELLANEOUS 
 6.1
Relationship of the Parties. The Parties declare and agree that each Party is engaged in a business that is independent from that of the other Party and the applicable Provider shall perform its obligations as an independent contractor. It is
expressly understood and agreed that nothing contained herein is intended to create an agency relationship, or a partnership or joint venture. Neither Party is an agent or employee of the other. Neither Party has authority to represent the other
Party as to any matters, except as authorized herein or in writing by the other Party from time to time. 
 6.2 Employees. Each
Provider shall be solely responsible for payment of compensation to its employees and those of any of its Affiliates engaged in providing any Transition Services and for any injury to them in the course of their employment. Each Provider shall
assume full responsibility for payment of all federal, state, and local taxes or contributions imposed or required under unemployment insurance, social security, and income Tax Laws with respect to such persons. 

6.3 Assignment. Neither this Agreement nor any of the rights or obligations hereunder shall be assigned by any of the Parties hereto
without the prior written consent of the other Party which consent shall not be unreasonably withheld. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the Parties

  
 - 10 - 

 
and their respective successors and permitted assigns. Any attempted assignment in violation of the terms of this Section 6.3 shall be null and void, ab initio. In the event that all
or some portion of a TSA Release or this Agreement in its entirety inures to the benefit of, or is enforceable by a Recipient that is a successor or permitted assign of the Parties, and such successor or assign is not an affiliate of one of the
Parties hereto, the Provider thereunder shall have the right to require that such successor in interest or permitted assign agree to a reasonable and mutually acceptable modification of the fee arrangement in Section 2.1 as a condition
to continuance of the applicable Transition Services. 
 6.4 Confidentiality. The Parties acknowledge that certain Confidential
Information may be shared or disclosed during the performance of this Agreement. The Parties agree that all Confidential Information will be subject to the confidentiality provisions of Article VII of the Separation Agreement. For purposes of
this Agreement, the term “Confidential Information” shall mean any information, observation or data that is confidential, proprietary or otherwise not generally known to the public concerning, arising from, owned by, or related to
the applicable Party. Confidential Information shall not include any information, observation or data that has been made generally available to the public other than as a result of a disclosure in breach of this Agreement or the Separation
Agreement. 
 6.5 Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of
any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any Person or any circumstance, is found to be invalid or unenforceable in any
jurisdiction, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid or enforceable, such provision and (b) the remainder of this Agreement and the application of such provision
to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other
jurisdiction. 
 6.6 Third Party Beneficiaries. The terms and provisions of this Agreement are intended solely for the benefit of the
Parties and their respective successors, Affiliates and permitted assigns, and it is not the intention of the Parties to confer third-party beneficiary rights upon any other Person. Should any third party institute proceedings, this Agreement shall
not provide any such person with any remedy, claim, liability, reimbursement, cause of action, or other right. 
 6.7 Governing Law.
This Agreement shall be governed by and construed in accordance with the Laws of the Commonwealth of Pennsylvania. 
 6.8 Consent to
Jurisdiction; Waiver of Jury Trial. 
 (a) Except as provided in Section 2.4 with respect to such disputes, each of the
Parties hereto irrevocably and unconditionally agrees that any Action with respect to this Agreement and the rights and obligations arising hereunder, or for the recognition and enforcement of any judgment in respect of this Agreement and the rights
and obligations arising hereunder brought by any other Party or Parties or their respective successors or assigns, shall be brought and determined exclusively in a state or federal court within the Commonwealth of Pennsylvania. 

  
 - 11 - 

 (b) Each of the Parties hereby irrevocably submits with regard to any such Action described in
clause (a) of this Section 6.8 for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any Action relating to this Agreement in
any court other than a state or federal court within the Commonwealth of Pennsylvania. Each of the Parties hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any Action with respect to
this Agreement, (i) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve in accordance with this Section 6.8, (ii) any claim that it or its
property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment
or otherwise) and (iii) to the fullest extent permitted by applicable Law, any claim that (x) the Action in such court is brought in an inconvenient forum, (y) the venue of such Action is improper or (z) this Agreement, or the
subject matter hereof, may not be enforced in or by such courts. 
 (c) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 6.9
Executed in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which shall, taken together, be considered one and the same agreement. Any facsimile or electronically
transmitted copies hereof or signature hereon shall, for all purposes, be deemed originals. 
 6.10 Construction. The headings and
numbering of articles, sections and paragraphs in this Agreement are for convenience only and shall not be construed to define or limit any of the terms or affect the scope, meaning, or interpretation of this Agreement or the particular Article or
Section to which they relate. This Agreement and the provisions contained herein shall not be construed or interpreted for or against any Party because that Party drafted or caused its legal representative to draft any of its provisions. 

6.11 Entire Agreement. This Agreement, including all exhibits and attachments hereto and all TSA Releases, and together with the
Transaction Agreement and the Other Transaction Documents, constitutes the entire Agreement between the Parties with respect to the Transition Services, and supersedes all prior oral or written agreements, representations, statements, negotiations,
understandings, proposals and undertakings with respect to the Transition Services to be provided hereunder. In the event of any inconsistency between this Agreement, on the one hand, and any of the Transaction Agreement, the Separation Agreement or
the Employee Matters Agreement, on the other hand, the terms of the Transaction Agreement, the Separation Agreement or the Employee Matters Agreement, as applicable, will control. 

6.12 Amendments and Waivers. This Agreement may not be amended, supplemented or modified except by an instrument in writing signed on
behalf of both Parties. Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on
behalf of the Party waiving such term or condition. No waiver by any Party of 

  
 - 12 - 

 
any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future
occasion. 
 6.13 Remedies Cumulative. Unless otherwise provided for under this Agreement (including, for the avoidance of doubt,
Section 3.3), all rights of termination or cancellation, or other remedies set forth in this Agreement, are cumulative and are not intended to be exclusive of other remedies to which the injured Party may be entitled by Law or equity in
case of any breach or threatened breach by the other Party of any provision in this Agreement. Unless otherwise provided for under this Agreement, use of one or more remedies shall not bar use of any other remedy for the purpose of enforcing any
provision of this Agreement. With respect to Section 6.4, each Party acknowledges and agrees that money damages would not be a sufficient remedy for any breach of this Agreement by it, and that in addition to all other remedies, the
other Party shall be entitled to specific performance and injunctive or other equitable relief as a remedy for any such breach. 
 6.14
Taxes. The Recipient shall pay, or reimburse the Provider for, the gross amount of any sales, use, excise, value-added or other similar tax (whether now existing or subsequently enacted) applicable to the amounts charged by the Provider for
Transition Services hereunder. The Provider shall include such taxes on the invoices provided in accordance with Section 2.2 hereof and shall be responsible for remitting such taxes to the applicable taxing authority. Each of Provider
and Recipient shall be solely responsible for the payment of any and all of their own other taxes imposed with respect to the provision of any Transition Services and any fees or charges in respect thereof, including without limitation franchise and
similar taxes on capital, employment taxes associated with its employees, property taxes, gross receipts taxes, and taxes based on income. 

[Signature Page Follows] 

  
 - 13 - 

 IN WITNESS WHEREOF, the Parties hereto have caused this Transition Services Agreement to be
executed by their duly authorized officers as of the date first written above. 
  

					
	PPL ENERGY SUPPLY, LLC		
			
	By:		 /s/ Paul A. Farr
		
	Name:		Paul A. Farr		
	Title:		President and Chief Executive Officer		
					
		
	PPL CORPORATION		
			
	By:		 /s/ William H. Spence
		
	Name:		William H. Spence		
	Title:		Chairman, President and Chief Executive Officer		
					

 - Signature Page to Transition Services Agreement-EX-10.5

 Exhibit 10.5 

TALEN ENERGY 2015 
 STOCK
INCENTIVE PLAN 
 1. Purpose of the Plan 

The purpose of the Plan is to aid the Company and its Affiliates in recruiting and retaining key employees, directors or other service
providers and to motivate such employees, directors or other service providers to exert their best efforts on behalf of the Company and its Affiliates by providing incentives through the granting of Awards. The Company expects that it will benefit
from the added interest which such key employees, directors or other service providers will have in the welfare of the Company as a result of their proprietary interest in the Company’s success. 

2. Definitions 
 The following
capitalized terms used in the Plan have the respective meanings set forth in this Section: 
 (a) Act: The Securities Exchange Act of
1934, as amended, or any successor statute thereto. 
 (b) Affiliate: With respect to any Person, any other Person, directly or
indirectly, controlling, controlled by, or under common control with such Person or any other Person designated by the Committee in which any Person has an interest. 

(c) Award: An Option, Stock Appreciation Right, Other Stock-Based Award or Performance-Based Award granted pursuant to the Plan. 

(d) Board: The Board of Directors of the Company. 

(e) Change in Control: The occurrence of any of the following events: 

(i) any Person or Group, other than a Permitted Holder, is or becomes the “beneficial owner” (as defined in rules
13d-3 and 13d-5 under the Act), directly or indirectly, of more than 30% of the total voting power of the voting stock of the Company (or any entity which controls the Company) within a 12-month period, including by way of merger, consolidation,
tender or exchange offer, or otherwise; 
 (ii) a reorganization, recapitalization, merger or consolidation (a
“Corporate Transaction”) involving the Company, unless securities representing 70% or more of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Company
or the corporation resulting from such Corporate Transaction (or the parent of such corporation) are held subsequent to such transaction by the Person or Persons who were the “beneficial owners” of the outstanding voting securities
entitled to vote generally in the election of directors of the Company immediately prior to such Corporate Transaction, in substantially the same proportions as their ownership immediately prior to such Corporate Transaction; 

  
 1 

 (iii) the sale or disposition, in one or a series of related transactions, of all
or substantially all, of the assets of the Company to any Person or Group other than the Permitted Holders; or 
 (iv) during
any period of 12 months, individuals who at the beginning of such period constituted the Board (together with any new directors whose election by such Board or whose nomination for election by the shareowners of the Company was approved by a vote of
a majority of the directors of the Company, then still in office, who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the
Board, then in office. 
 (f) Code: The Internal Revenue Code of 1986, as amended, or any successor thereto, and the regulations and
guidance promulgated thereunder. 
 (g) Committee: The Compensation, Governance and Nominating Committee of the Board (or a
subcommittee thereof), or such other committee of the Board (including, without limitation, the full Board) to which the Board has delegated power to act under or pursuant to the provisions of the Plan. 

(h) Company: Talen Energy Corporation, a Delaware corporation. 

(i) Company Group: The Company and its Affiliates. 

(j) Disability: Unless otherwise agreed by the Company (or any of its Affiliates) in a written employment agreement or employment letter
with such Participant, or as specified in an Award Agreement, “Disability” shall have the meaning of such term as set forth in Section 409A of the Code. The Disability determination shall be in the sole discretion of the Committee.

 (k) Effective Date: The date the Board approves the Plan, or such later date as is designated by the Board. 

(l) Employment: The term “Employment” as used herein shall be deemed to refer to (i) a Participant’s employment, if
the Participant is an employee of the Company or any of its Affiliates, (ii) a Participant’s services, if the Participant is another form of service provider to the Company or any of its Affiliates and (iii) a Participant’s
services as a non-employee director, if the Participant is a non-employee member of the Board or the board of directors of an Affiliate; provided, however, that unless otherwise determined by the Committee, a change in a
Participant’s status from employee to non-employee shall constitute a termination of employment hereunder. 
 (m) Fair Market
Value: On a given date, (i) if there should be a public market for the Shares on such date, the closing price of the Shares as reported on such date on the composite tape of the principal national securities exchange on which such Shares
are listed or admitted to trading, or if the Shares are not listed or admitted on any national securities exchange but are quoted on an inter-dealer quotation system, the final ask price of the Shares on such system on such date, or, if no sale of
Shares shall have been reported on the composite tape of any national securities exchange or quoted on an inter-dealer quotation system on such date, then the closing price or final ask price on the immediately preceding date on which sales of the
Shares have been so reported or quoted shall be used, and (ii) if there should not be a public market for the Shares on such date, the Fair Market Value shall be the fair market value of the Shares as determined by the Committee in good faith.

  
 2 

 (n) Group shall mean “group,” as such term is used for purposes of
Section 13(d) or 14(d) of the Act. 
 (o) ISO: An Option that is also an incentive stock option granted pursuant to
Section 6(d) of the Plan. 
 (p) Option: A stock option granted pursuant to Section 6 of the Plan. 

(q) Option Price: The purchase price per Share of an Option, as determined pursuant to Section 6(a) of the Plan. 

(r) Other Stock-Based Awards: Awards granted pursuant to Section 8 of the Plan. 

(s) Participant: An employee, director or other service provider of the Company or any of its Affiliates who is selected by the
Committee to participate in the Plan. 
 (t) Performance-Based Awards: Certain Other Stock-Based Awards granted pursuant to
Section 9 of the Plan. 
 (u) Permitted Holder: Any of the following: (i) the Company or any of its Affiliates, (ii) a
trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation
owned, directly or indirectly, by the shareowners of the Company in substantially the same proportions as their ownership of stock of the Company. 

(v) Person shall mean “person”, as such term is defined in Section 3(a)(9) of the Act; provided that references to
“Person” within the defined term “Change in Control” shall mean a “person” as defined in Section 3(a)(9) of the Act, as modified and used in Sections 13(d) and 14(d) of the Act. 

(w) Plan: The Talen Energy 2015 Stock Incentive Plan, as it may be amended from time to time. 

(x) Service Recipient: The Company or any Affiliate of the Company that satisfies the definition of “service recipient” within
the meaning of Treasury Regulation Section 1.409A-1 (or any successor regulation), with respect to which the person is a “service provider” within the meaning of such Treasury Regulation Section 1.409A-1 (or any successor
regulation). 
 (y) Shares: Shares of common stock of the Company. 

(z) Stock Appreciation Right: A stock appreciation right granted pursuant to Section 7 of the Plan. 

  
 3 

 (aa) Subsidiary: A subsidiary corporation, as defined in Section 424(f) of the Code
(or any successor section thereto). 
 3. Shares Subject to the Plan 

Subject to Section 10, the total number of Shares which may be issued under the Plan is 5,630,000 and the maximum number of Shares for
which ISOs may be granted is 2,000,000. Additionally, subject to Section 10, the maximum number of Shares for which Options or Stock Appreciation Rights may be granted during a fiscal year to any Participant shall be 2,000,000. The Shares may
consist, in whole or in part, of unissued Shares or treasury Shares. The issuance of Shares or the payment of cash upon the exercise of an Award or in consideration of the cancellation or termination of an Award shall reduce the total number of
Shares available under the Plan, as applicable. If Shares are not issued or are withheld from payment of an Award to satisfy tax obligations with respect to the Award, such Shares will not be added back to the aggregate number of Shares with respect
to which Awards may be granted under the Plan, but rather will count against the aggregate number of Shares with respect to which Awards may be granted under the Plan. When an Option or Stock Appreciation Right is granted under the Plan, the number
of Shares subject to the Option or Stock Appreciation Right will be counted against the aggregate number of Shares with respect to which Awards may be granted under the Plan as one Share for every Share subject to such Option or Stock Appreciation
Right, regardless of the actual number of Shares (if any) used to settle such Option or Stock Appreciation Right upon exercise. Shares which are subject to Awards which terminate or lapse without the payment of consideration may be granted again
under the Plan. 
 4. Administration 

(a) The Plan shall be administered by the Committee; provided, however, that the Board may, in its sole discretion, take any
action delegated to the Committee under this Plan as it may deem necessary for the effective administration of this Plan. The Committee may delegate its duties and powers in whole or in part to any subcommittee thereof consisting solely of at least
two individuals who are intended to qualify as “Non-Employee Directors” within the meaning of Rule 16b-3 under the Act (or any successor rule thereto), “independent directors” within the meaning of the New York Stock Exchanges
listed company rules and “outside directors” within the meaning of Section 162(m) of the Code (or any successor section thereto), to the extent such qualification requirements apply in connection with the contemplated Award grant.
Additionally, the Committee may delegate the authority to grant Awards under the Plan to any employee or group of employees of the Company or an Affiliate; provided that (i) such delegation and grants are consistent with applicable law
and guidelines established by the Board from time to time and (ii) no such delegation shall be permitted with respect to grants of Awards to Participants who are executive officers of the Company or its Affiliates or members of the
Company’s Board. 
 (b) The Committee shall have the full power and authority to establish the terms and conditions of any Award
consistent with the provisions of the Plan (including, without limitation, designating Participants, determining the type or types of Awards and determining the number of Shares to be covered by Awards) and to waive any such terms and conditions at
any time (including, without limitation, accelerating or waiving any vesting conditions). Awards may, in the discretion of the Committee, be made under the Plan in assumption of, or in substitution for, outstanding awards previously granted by the
Company or its Affiliates or a company acquired by the Company or with which the Company combines. The number of Shares underlying such substitute awards shall be counted against the aggregate number of Shares available for Awards under the Plan.

  
 4 

 (c) In each case subject to Section 16, the Committee is authorized to interpret the Plan,
to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan, and may delegate such authority, as it deems appropriate.
The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable. Any decision of the Committee in the interpretation and administration
of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or successors). 

(d) The Committee shall require payment of any amount it may determine to be necessary to withhold for federal, state, local or other taxes as
a result of the exercise, grant or vesting of an Award and the Company or any of its Subsidiaries shall have the right and is authorized to withhold any applicable withholding taxes in respect to the Award, its exercise or any payment or transfer
under or with respect to the Award and to take such other action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes. To the extent permitted by the Committee, the Participant may
elect to pay a portion or all of such withholding taxes by (i) delivery of Shares, provided that such Shares have been held by the Participant for more than six (6) months (or such other period as established by the Committee from time to
time in order to avoid adverse accounting treatment applying generally accepted accounting principles) or (ii) with respect to minimum withholding amounts only, having Shares with a Fair Market Value equal to the amount of such withholding
taxes withheld by the Company from any Shares that would have otherwise been received by the Participant (i.e., through a “net settlement” of such minimum tax withholding due). 

5. Limitations 
 No Award may be
granted under the Plan after the tenth anniversary of the Effective Date, but Awards theretofore granted may extend beyond that date. 
 6. Terms and
Conditions of Options 
 Options granted under the Plan shall be non-qualified stock options unless specifically identified as an ISO
(as defined in Section 6(d)), as determined by the Committee and evidenced by the related Award agreements, and shall be subject to such other terms and conditions not inconsistent therewith. In addition to the foregoing, except as otherwise
determined by the Committee and evidenced by the related Award agreements, the Options shall also be subject to the following terms and conditions: 

(a) Option Price. The Option Price per Share shall be determined by the Committee, but shall not be less than 100% of the Fair
Market Value of a Share on the date an Option is granted (other than in the case of Options granted in substitution of previously granted awards, as described in Section 4(b)). 

  
 5 

 (b) Exercisability. Options granted under the Plan shall be exercisable at such
time and upon such terms and conditions as may be determined by the Committee, but in no event shall an Option be exercisable more than ten years after the date it is granted; provided, however, in the event that any portion of an
exercisable Option is scheduled to expire on such tenth anniversary date or otherwise scheduled to expire pursuant to the applicable Award agreement and both (x) the date on which such portion of the Option is scheduled to expire falls during a
Company blackout trading period applicable to the Participant (whether such period is imposed at the election of the Company or is required by applicable law to be imposed) and (y) the exercise price per Share of such portion of the Option is
less than the Fair Market Value, then on the date that such portion of the Option is scheduled to expire, such portion of the Option (to the extent not previously exercised by the Participant) shall be automatically exercised on behalf of the
Participant through a net settlement of both the exercise price and the minimum withholding taxes due (if any) upon such automatic exercise (as described in Section 6(c)(v), below), and the net number of Shares resulting from such automatic
exercise shall be delivered to the Participant as soon as practicable thereafter. 
 (c) Exercise of Options. Except as
otherwise provided in the Plan or in an Award agreement, an Option may be exercised for all, or from time to time any part, of the Shares for which it is then exercisable. For purposes of Section 6 of the Plan, the exercise date of an Option
shall be the later of the date a notice of exercise is received by the Company and, if applicable, the date payment is received by the Company pursuant to clauses (i), (ii), (iii), (iv) or (v) in the following sentence. The purchase price
for the Shares as to which an Option is exercised shall be paid to the Company in full at the time of exercise at the election of the Participant: (i) in cash or its equivalent (e.g., by check), (ii) to the extent permitted by the
Committee, in Shares having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee, provided, that such Shares have been held by the
Participant for such period of time as the Company’s accountants may require to avoid adverse accounting treatment, (iii) partly in cash and, to the extent permitted by the Committee, partly in such Shares, (iv) if there should be a
public market for the Shares at such time, to the extent permitted by, and subject to such rules as may be established by the Committee, through the delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the
Option and to deliver promptly to the Company an amount out of the proceeds of such sale equal to the aggregate Option Price for the Shares being purchased, or (v) to the extent permitted by the Committee, through a “net settlement”
feature (i.e., having Shares with a Fair Market Value equal to the aggregate Option Price withheld by the Company from any Shares that would have otherwise been received by the Participant upon exercise of the Option). No Participant shall have any
rights to dividends or other rights of a shareowner with respect to Shares subject to an Option until the Participant has given written notice of exercise of the Option, paid in full for such Shares and, if applicable, has satisfied any other
conditions imposed by the Committee pursuant to the Plan. 

  
 6 

 (d) ISOs. The Committee may grant Options under the Plan that are intended to be
“incentive stock options” (within the meaning of Section 422 of the Code) (“ISOs”). Such ISOs shall comply with the requirements of Section 422 of the Code (or any successor section thereto). No ISO may be
granted to any Participant who at the time of such grant, owns more than 10% of the total combined voting power of all classes of stock of the Company or of any Subsidiary, unless (i) the Option Price for such ISO is at least 110% of the Fair
Market Value of a Share on the date the ISO is granted and (ii) the date on which such ISO terminates is a date not later than the day preceding the fifth anniversary of the date on which the ISO is granted. Any Participant who disposes of
Shares acquired upon the exercise of an ISO either (x) within two years after the date of grant of such ISO or (y) within one year after the transfer of such Shares to the Participant, shall notify the Company of such disposition and of
the amount realized upon such disposition. All Options granted under the Plan are intended to be non-qualified stock options, unless the applicable Award agreement expressly states that the Option is intended to be an ISO. If an Option is intended
to be an ISO, and if for any reason such Option (or portion thereof) shall not qualify as an ISO, then, to the extent of such non-qualification, such Option (or portion thereof) shall be regarded as a non-qualified stock option granted under the
Plan; provided that such Option (or portion thereof) otherwise complies with the Plan’s requirements relating to non-qualified stock options. In no event shall any member of the Committee, the Company or any of its Affiliates (or their
respective employees, officers or directors) have any liability to any Participant (or any other Person) due to the failure of an Option to qualify for any reason as an ISO. 

(e) Attestation. Wherever in this Plan or any agreement evidencing an Award a Participant is permitted to pay the Option Price of
an Option or taxes relating to the exercise of an Option by delivering Shares, the Participant may, subject to procedures satisfactory to the Committee, satisfy such delivery requirement by presenting proof of beneficial ownership of such Shares, in
which case the Company shall treat the Option as exercised without further payment and/or shall withhold such number of Shares from the Shares acquired by the exercise of the Option, as appropriate. 

(f) Repricing of Options. Notwithstanding any provision herein to the contrary, the repricing of an Option, once granted
hereunder, is prohibited without prior approval of the Company’s shareowners. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the
terms of an Option to lower the Option Price, (ii) any other action that is treated as a “repricing” under generally accepted accounting principles, and (iii) repurchasing for cash or canceling an Option in exchange for another
Award at a time when the Option Price is greater than the Fair Market Value of the underlying Shares, unless the cancellation and exchange occurs in connection with a change in capitalization or similar change permitted under Section 10(a)
below. Such cancellation and exchange would be considered a “repricing” regardless of whether it is treated as a “repricing” under generally accepted accounting principles and regardless of whether it is voluntary on the part of
the Participant. 
 7. Terms and Conditions of Stock Appreciation Rights 

(a) Grants. The Committee may also grant (i) a Stock Appreciation Right independent of an Option or (ii) a Stock
Appreciation Right in connection with an Option, or a portion thereof. A Stock Appreciation Right granted pursuant to clause (ii) of the preceding sentence (A) may be granted at the time the related Option is granted or at any time prior
to the exercise or cancellation of the related Option, (B) shall cover the same number of Shares covered by an Option (or such lesser number of Shares as the Committee may determine) and (C) shall be subject to the same terms and
conditions as such Option except for such additional limitations as are contemplated by this Section 7 (or such additional limitations as may be included in an Award agreement). 

  
 7 

 (b) Terms. The exercise price per Share of a Stock Appreciation Right shall be an
amount determined by the Committee but in no event shall such amount be less than 100% of the Fair Market Value of a Share on the date the Stock Appreciation Right is granted (other than in the case of Stock Appreciation Rights granted in
substitution of previously granted awards, as described in Section 4(b)); provided, however, that in the case of a Stock Appreciation Right granted in conjunction with an Option, or a portion thereof, the exercise price may not be
less than the Option Price of the related Option; and provided, further, that the exercise price of a Stock Appreciation Right that is granted in exchange for an Option may be less than the Fair Market Value on the grant date if such
exercise price is equal to the Option Price of the exchanged Option. Each Stock Appreciation Right granted independent of an Option shall entitle a Participant upon exercise to an amount equal to (i) the excess of (A) the Fair Market Value
on the exercise date of one Share over (B) the exercise price per Share, times (ii) the number of Shares covered by the Stock Appreciation Right. Each Stock Appreciation Right granted in conjunction with an Option, or a portion thereof,
shall entitle a Participant to surrender to the Company the unexercised Option, or any portion thereof, and to receive from the Company in exchange therefore an amount equal to (i) the excess of (A) the Fair Market Value on the exercise
date of one Share over (B) the Option Price per Share, times (ii) the number of Shares covered by the Option, or portion thereof, which is surrendered. The date a notice of exercise is received by the Company shall be the exercise date.
Payment to the Participant shall be made in Shares or in cash, or partly in Shares and partly in cash (any such Shares valued at such Fair Market Value), all as shall be determined by the Committee. Stock Appreciation Rights may be exercised from
time to time upon actual receipt by the Company of written notice of exercise stating the number of Shares with respect to which the Stock Appreciation Right is being exercised. No fractional Shares will be issued in payment for Stock Appreciation
Rights, but instead cash will be paid for a fraction or, if the Committee should so determine, the number of Shares will be rounded downward to the next whole Share. 

(c) Limitations. The Committee may impose, in its discretion, such conditions upon the exercisability or transferability of Stock
Appreciation Rights as it may deem fit, but in no event shall a Stock Appreciation Right be exercisable more than ten years after the date it is granted. 

(d) Repricing of Stock Appreciation Rights. Notwithstanding any provision herein to the contrary, the repricing of a Stock
Appreciation Right, once granted hereunder, is prohibited without prior approval of the Company’s shareowners. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the
following): (i) changing the terms of a Stock Appreciation Right to lower its exercise price, (ii) any other action that is treated as a “repricing” under generally accepted accounting principles, and (iii) repurchasing for
cash or canceling a Stock Appreciation Right in exchange for another Award at a time when its exercise price is greater than the Fair Market Value of the underlying Shares, unless the cancellation and exchange occurs in connection with a change in
capitalization or similar change permitted under Section 10(a) below. Such cancellation and exchange would be considered a “repricing” regardless of whether it is treated as a “repricing” under generally accepted accounting
principles and regardless of whether it is voluntary on the part of the Participant. 

  
 8 

 8. Other Stock-Based Awards 

(a) The Committee, in its sole discretion, may grant or sell Awards of Shares, Awards of restricted Shares, Awards of restricted stock units,
Awards of dividend equivalent units and Awards that are valued in whole or in part by reference to, or are otherwise based on the Fair Market Value of Shares (such Awards, “Other Stock-Based Awards”). Such Other Stock-Based Awards
shall be in such form, and dependent on such conditions, as the Committee shall determine, including, without limitation, the right to receive, or vest with respect to, one or more Shares (or the equivalent cash value of such Shares) upon the
completion of a specified period of service, the occurrence of an event and/or the attainment of performance objectives. Other Stock-Based Awards may be granted alone or in addition to any other Awards granted under the Plan. Subject to the
provisions of the Plan, the Committee shall determine to whom and when Other Stock-Based Awards will be made, the number of Shares to be awarded under (or otherwise related to) such Other Stock-Based Awards, whether such Other Stock-Based Awards
shall be settled in cash, Shares or a combination of cash and Shares, and all other terms and conditions of such Awards (including, without limitation, the vesting provisions thereof and provisions ensuring that all Shares so awarded and issued
shall be fully paid and non-assessable). 
 9. Performance-Based Awards. 

(a) The Committee, in its sole discretion, may grant Awards which are denominated in Shares or cash (such Awards, “Performance-Based
Awards”), which Awards may, but for the avoidance of doubt are not required to, be granted in a manner which is intended to be deductible by the Company under Section 162(m) of the Code (or any successor section thereto). Such
Performance-Based Awards shall be in such form, and dependent on such conditions, as the Committee shall determine, including, without limitation, the right to receive, or vest with respect to, one or more Shares or the cash value of the Award upon
the completion of a specified period of service, the occurrence of an event and/or the attainment of performance objectives. Performance-Based Awards may be granted alone or in addition to any other Awards granted under the Plan. Subject to the
provisions of the Plan, the Committee shall determine to whom and when Performance-Based Awards will be made, the number of Shares or aggregate amount of cash to be awarded under (or otherwise related to) such Performance-Based Awards, whether such
Performance-Based Awards shall be settled in cash, Shares or a combination of cash and Shares, and all other terms and conditions of such Awards (including, without limitation, the vesting provisions thereof and provisions ensuring that all Shares
so awarded and issued, to the extent applicable, shall be fully paid and non-assessable). 
 (b) A Participant’s Performance-Based Award
shall be determined based on the attainment of written performance goals approved by the Committee for a performance period established by the Committee. Such determination shall be made (i) while the outcome for that performance period is
substantially uncertain and (ii) no more than 90 days after the commencement of the performance period to which the performance goal relates or, if less, the number of days which is equal to 25% of the relevant performance period. The
performance 

  
 9 

 
goals, which must be objective, shall be based upon one or more of the following criteria: (1) earnings before or after taxes (including earnings before interest, taxes, depreciation and
amortization), (2) net income, (3) operating income, (4) earnings per share, (5) book value per share, (6) return on shareowners’ equity, (7) expense management, (8) return on investment before or after the
cost of capital, (9) improvements in capital structure, (10) profitability of an identifiable business unit or product, (11) maintenance or improvement of profit margins, (12) stock price, (13) market share,
(14) revenues or sales, (15) costs, (16) cash flow (or free cash flow), (17) working capital, (18) changes in net assets (whether or not multiplied by a constant percentage intended to represent the cost of capital),
(19) return on assets, (20) credit rating, (21) improvement in workforce diversity, (22) employee retention, (23) closing of corporate transactions, (24) strategic plan development and implementation,
(25) independent industry ratings or assessments and (26) total shareowners’ return. The foregoing criteria may relate to the Company, one or more of its Subsidiaries or one or more of its or their divisions or units, or any
combination of the foregoing, and may be applied on an absolute basis and/or be relative to one or more peer group companies or indices, or any combination thereof, all as the Committee shall determine. In addition, to the degree consistent with
Section 162(m) of the Code (or any successor section thereto), the performance goals may be calculated without regard to extraordinary items. The maximum amount of a Performance-Based Award granted in respect of any given performance period
that may be earned with respect to each fiscal year of the Company covered by the performance period by any Participant shall be: (x) with respect to Performance-Based Awards that are denominated in Shares, 750,000 Shares and (y) with
respect to Performance-Based Awards that are denominated in cash, $4,000,000.00. For the avoidance of doubt, to the extent that a Performance-Based Award may be earned over a period that is longer than one fiscal year of the Company, the foregoing
limitations shall apply to each full or partial fiscal year during or in which such Award may be earned. 
 (c) The Committee shall determine
whether, with respect to a performance period, the applicable performance goals have been met with respect to a given Participant and, if they have, and such Performance-Based Award is intended to be deductible by the Company under
Section 162(m) of the Code, shall so certify and ascertain the amount of the applicable Performance-Based Award. No Performance-Based Awards will be paid for such performance period until such certification, to the extent applicable, is made by
the Committee. The amount of the Performance-Based Award actually paid to a given Participant may be less than the amount determined by the applicable performance goal formula, at the discretion of the Committee. The amount of the Performance-Based
Award determined by the Committee for a performance period shall be paid to the Participant at such time as determined by the Committee in its sole discretion after the end of such performance period; provided, however, that a
Participant may, if and to the extent permitted by the Committee and consistent with the provisions of Sections 162(m) and 409A of the Code, to the extent applicable, elect to defer payment of a Performance-Based Award. 

  
 10 

	10.	Adjustments upon Certain Events 

 Notwithstanding any other provisions in the Plan
to the contrary, the following provisions shall apply to all Awards granted under the Plan: 
 (a) Generally. In the event of
any Share dividend or split, reorganization, recapitalization, merger, consolidation, spin-off, combination or transaction or exchange of Shares or other corporate exchange, any equity restructuring (as defined under Financial Accounting Standards
Board (FASB) Accounting Standards Codification 718), or any distribution to shareowners other than regular cash dividends or any transaction similar to the foregoing, the Committee in its sole discretion and without liability to any Person shall
make such substitution or adjustment as it deems reasonably necessary to address, on an equitable basis, the effect of such event (subject to Section 19), as to (i) the number or kind of Shares or other securities issued or reserved for
issuance pursuant to the Plan or pursuant to outstanding Awards, (ii) the maximum number of Shares for which Options or Stock Appreciation Rights may be granted during a fiscal year to any Participant, (iii) the maximum amount of a
Performance Based Award that may be granted during a fiscal year to any Participant, (iv) the Option Price or exercise price of any Award and/or (v) any other affected terms of such Awards. 

(b) Change in Control. In the event of a Change in Control after the Effective Date, the Committee may (subject to
Section 19), but shall not be obligated to: (A) accelerate, vest or cause the restrictions to lapse with respect to all or any portion of an Award, (B) cancel such Awards for cash payment of fair value (as determined in the sole
discretion of the Committee) which, in the case of Options and Stock Appreciation Rights, may equal the excess, if any, of value of the consideration to be paid in the Change in Control transaction to holders of the same number of Shares subject to
such Options or Stock Appreciation Rights (or, if no consideration is paid in any such transaction, the Fair Market Value of the Shares subject to such Options or Stock Appreciation Rights) over the aggregate exercise price of such Options or Stock
Appreciation Rights (and otherwise, the Committee may cancel Awards for no consideration if the aggregate Fair Market Value of the shares subject to such Awards is less than or equal to the aggregate Option Price of such Options or exercise price of
such Stock Appreciation Rights), (C) provide for the issuance of substitute Awards that will substantially preserve the otherwise applicable terms of any affected Awards previously granted hereunder as determined by the Committee in its sole
discretion or (D) provide that for a period of at least 30 days prior to the Change in Control, such Options or Stock Appreciation Rights shall be exercisable as to all shares subject thereto and that upon the occurrence of the Change in
Control, such Options or Stock Appreciation Rights shall terminate and be of no further force and effect. 
 11. Forfeiture/Clawback 

The Committee may, in its sole discretion, specify in an Award or a policy that will be incorporated into an Award agreement by reference, that
the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or
performance conditions of an Award. Such events may include, but shall not be limited to, termination of Employment for cause, termination of the Participant’s provision of services to the Company or any of its Subsidiaries, breach of
noncompetition, confidentiality, or other restrictive covenants that may apply to the Participant, or restatement of the Company’s financial statements to reflect adverse results from those previously released financial statements, as a
consequence of errors, omissions, fraud, or misconduct. 

  
 11 

 12. No Right to Employment or Awards 

The granting of an Award under the Plan shall impose no obligation on the Company or any Affiliate to continue the Employment of a Participant
and shall not lessen or affect the Company’s or Affiliate’s right to terminate the Employment of such Participant. No Participant or other Person shall have any claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations with respect thereto need not be the same with respect to each Participant (whether or
not such Participants are similarly situated). 
 13. Securities Laws 

The Board may refuse to instruct the Company to issue or transfer any Shares or other consideration under an Award if, acting in its sole
discretion, it determines that the issuance or transfer of such Shares or such other consideration might violate any applicable law or regulation and any payment tendered to the Company by a Participant, other holder or beneficiary in connection
with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. Without limiting the generality of the foregoing, no Award granted hereunder shall be construed as an offer to sell securities of the
Company, and no such offer shall be outstanding, unless and until the Committee in its sole discretion has determined that any such offer, if made, would be in compliance with the applicable requirements of applicable securities laws. 

14. Successors and Assigns 
 The
Plan shall be binding on all successors and assigns of the Company and a Participant, including without limitation, the estate of such Participant and the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or
representative of the Participant’s creditors. 
 15. Nontransferability of Awards 

Unless otherwise determined by the Committee, an Award shall not be transferable or assignable by the Participant otherwise than by will or by
the laws of descent and distribution. In no event shall an Award be transferable by a Participant to a Person other than such Participant’s immediate family (or a trust or estate planning vehicle for the benefit of the Participant’s
immediate family) for value or consideration. An Award exercisable after the death of a Participant may be exercised by the legatees, personal representatives or distributees of the Participant. 

  
 12 

 16. Amendments or Termination 

Subject to the limitations imposed under Sections 6(f) and 7(d) of this Plan, the Board may amend, alter or discontinue the Plan or any
outstanding Award, but no amendment, alteration or discontinuation shall be made, (a) without the approval of the shareowners of the Company (i) to increase the number of Shares reserved under the Plan, (ii) to modify the requirements
for participation in the Plan or (iii) to the extent such shareowner approval is required by or desirable to satisfy the requirements of, in each case, any applicable law, regulation or other rule, including, the listing standards of the
securities exchange, which is, at the applicable time, the principal market for the Shares, or (b) without the consent of a Participant, if such action would materially and adversely affect any of the rights of the Participant under any Award
theretofore granted to such Participant under the Plan; provided, however, that the Committee may amend the Plan in such manner as it deems necessary to permit the granting of Awards meeting the requirements of the Code or other
applicable laws (including, without limitation, to avoid adverse tax or accounting consequences to the Company or to Participants). 

Without limiting the generality of the foregoing, to the extent applicable, notwithstanding anything herein to the contrary, this Plan and
Awards issued hereunder shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretative guidance issued thereunder, including without limitation any such regulations or other
guidance that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that the Committee determines that any amounts payable hereunder will be taxable to a Participant under Section 409A
of the Code and related Department of Treasury guidance prior to payment to such Participant of such amount, the Company may (a) adopt such amendments to the Plan and Awards and appropriate policies and procedures, including amendments and
policies with retroactive effect, that the Committee determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder and/or (b) take such other actions as the Committee
determines necessary or appropriate to avoid the imposition of an additional tax under Section 409A of the Code. 
 17. Choice of Law

 The Plan shall be governed by and construed in accordance with the laws of the State of Delaware without regard to conflicts of laws. 

18. Effectiveness of the Plan  

The Plan shall be effective as of the Effective Date, subject to the approval of the shareowners of the Company. 

19. Section 409A of the Code 

Notwithstanding other provisions of the Plan or any Award agreements thereunder, no Award shall be granted, deferred, accelerated, extended,
paid out or modified under this Plan in a manner that would result in the imposition of an additional tax under Section 409A of the Code upon a Participant. In the event that it is reasonably determined by the Committee that, as a result

  
 13 

 
of Section 409A of the Code, payments in respect of any Award under the Plan may not be made at the time contemplated by the terms of the Plan or the relevant Award agreement, as the case
may be, without causing the Participant holding such Award to be subject to taxation under Section 409A of the Code, the Company will make such payment on the first day that would not result in the Participant incurring any tax liability under
Section 409A of the Code. References under the Plan or an Award to the Participant’s termination of Employment shall be deemed to refer to the date upon which the Participant has experienced a “separation from service” within the
meaning of Section 409A of the Code. For purposes of Section 409A of the Code, each of the payments that may be made in respect of any Award granted under the Plan is designated as separate payments. Notwithstanding anything herein to the
contrary, (a) if at the time of the Participant’s separation from service with any Service Recipient the Participant is a “specified employee” as defined in Section 409A of the Code, and the deferral of the commencement of
any payments or benefits otherwise payable hereunder as a result of such separation from service is necessary in order to prevent the imposition of any accelerated or additional tax under Section 409A of the Code, then the Company will defer
the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Participant) to the minimum extent necessary to satisfy Section 409A of the Code
until the date that is six months and one day following the Participant’s separation from service with all Service Recipients (or the earliest date as is permitted under Section 409A of the Code), if such payment or benefit is payable upon
a termination of Employment and (b) if any other payments of money or other benefits due to the Participant hereunder would cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other
benefits shall be deferred, if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the minimum extent necessary, in a manner,
reasonably determined by the Board, that does not cause such an accelerated or additional tax or result in an additional cost to the Company (without any reduction in such payments or benefits ultimately paid or provided to the Participant). 

The Company shall use commercially reasonable efforts to implement the provisions of this Section 19 in good faith; provided that
neither the Company, the Board, the Committee nor any of the Company’s employees, directors or representatives shall have any liability to Participants with respect to this Section 19. 

 

	20.	Awards Subject to the Plan 

 In the event of a conflict between any term or
provision contained in the Plan and a term contained in any Award agreement, the applicable terms and provisions of the Plan will govern and prevail. 
  

	21.	Fractional Shares 

 Notwithstanding other provisions of the Plan or any Award
agreements thereunder, the Company shall not be obligated to issue or deliver fractional Shares pursuant to the Plan or any Award and the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in
lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be cancelled, terminated or otherwise eliminated with, or without, consideration. 

  
 14 

	22.	Severability 

 If any provision of the Plan or any Award is, or becomes or is
deemed to be invalid, illegal, unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform
to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award
and the remainder of the Plan and any such Award shall remain in full force and effect. 

  
 15

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