Document:

Unassociated Document

Exhibit 10(c)

EXECUTION VERSION

REIMBURSEMENT AGREEMENT

Dated as of July 1, 2012

	
TO:

	  	
BANCO BILBAO VIZCAYA ARGENTARIA, S.A. New York Branch

	  	  	
1345 Avenue of the Americas

	  	  	
New York, New York 10105

Gentlemen:

In consideration of your opening from time to time, at our request and in your discretion in each instance, pursuant to the terms and conditions of this Agreement and the Credit Agreement (defined below), one or more of your Credits (this and other terms used in this Agreement shall have the meaning set forth in Section 21 of this Agreement, unless otherwise defined herein), we hereby agree with you as follows with respect to each Credit now or hereafter opened by you:

1.  All drafts or acceptances under or purporting to be under the Credit shall be payable in Dollars.  Accordingly, we agree to reimburse you at your office at 1345 Avenue of the Americas, New York, New York or such other office as you may specify in writing (the “Payment Office”), in Dollars, the amount paid on such draft (i) at or before 1:00 P.M. (New York, New York time) on the date the Bank notifies us of such drawing, if such notice is given at or before 10:00 A.M. (New York, New York time) on such date or (ii) at or before 10:00 A.M. (New York, New York time) on the next succeeding Business Day; provided, that no payment otherwise required by this sentence to be made by us at or before 1:00 P.M. (New York, New York time) on any day shall be overdue hereunder if arrangements for such payment satisfactory to the Bank, in its reasonable discretion, shall have been made by us at or before 1:00 P.M. (New York, New York time) on such day and such payment is actually made at or before 3:00 P.M. (New York, New York time) on such day.

2.  [DELETED]

3.  The Bank may - for the undersigned’s account at any time - provide in the Credit or otherwise agree to discount an accepted draft or deferred obligation incurred under such Credit.

 

4.  We agree to pay to you, on demand, your commissions and/or fees applicable to Credits from time to time (those in place as of the date hereof are set forth in schedule 1 hereto) and all charges and expenses (including, without limitation, all of your standard charges relating to letters of credit from time to time in effect and all charges for legal services) charged, paid or incurred by you in connection with any Credit, plus the charges and expenses, if any, of any person relating to the advising, con­firming, negotiating, paying, collection, correspondent or similar act with respect to any Credit.  In addition, we agree to pay interest on any amounts not paid when due hereunder at a rate per annum equal to 2% above your Prime Lending Rate as in effect from time to time. Interest shall be computed on the number of days actually elapsed on the basis of a 360-day year.  All payments due under this Agreement shall be made without deduction or set-off.

5.[DELETED]

6.We agree to the prompt and unconditional payment of all of our obligations and liabilities to you and all of your claims against us arising or incurred under this Agreement or relating to any Credit, whether now existing or hereafter incurred, and whether now or hereafter owing to or acquired in any manner by you (all such obligations, liabilities and claims being hereinafter referred to as the “Obligations”); provided, however, that subject to Section 14 below, the foregoing shall not release you from such liability to us as may be judicially determined in a final, non-appealable judgment by a court of competent jurisdiction pursuant to Section 18 below) against you following reimbursement and/or payment of the Obligations.

7.Except so far as otherwise expressly stated in any Credit, we agree that such Credit shall be subject to the New York Uniform Commercial Code (herein called the “UCC”) and to the International Standby Practices 1998 (International Chamber of Commerce Publication No. 590) and any subsequent revision thereof adopted by the International Chamber of Commerce on the date such Credit is issued (the “ISP”) (or as an alternative to the ISP if specified by us in writing in any application or request to issue a Credit, the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600 and any subsequent revision thereof adopted by the International Chamber of Commerce on the date such Credit is issued (the “UCP”)). Bank’s privileges, rights and remedies under the ISP (or the UCP, as the case may be) shall be in addition to, and not in limitation of, its privileges, rights, and remedies expressly provided for herein.  The ISP (or the UCP, as the case may be) shall serve, in the absence of proof to the contrary, as evidence of Standard Letter of Credit Practice (as defined below) with respect to matters covered therein.  To the extent permitted by applicable law, (i) this Agreement shall prevail in case of conflict between this Agreement, the UCC and/or Standard Letter of Credit Practice, and (ii) the ISP (or the UCP, as the case may be) shall prevail in case of conflict between the ISP (or the UCP, as the case may be) and the UCC or other Standard Letter of Credit Practice.  

8.We assume all risks of the acts or omissions of the users of any Credit and all risks of the misuse of any Credit.  Neither you nor any of your correspon­dents shall be responsible for any of the following: 

(a) honor of any presentation that substantially complies with a Credit, even if that Credit requires strict compliance by the beneficiary, or in accordance with our waiver of discrepancies and authorization to pay; 

(b) electronic presentation, if authorized by any Credit;

(c) the nature, form, sufficiency, accuracy, genuineness, legal effect, or collectability of any draft or any endorsement thereon;

(d) the solvency or responsibility of any party issuing any draft;

(e) honor of drafts, acceptances or other items signed or presented by or on behalf of, or requesting payment to a person or entity that is the purported successor to, the beneficiary, or payment of proceeds to a purported assignee of proceeds;

(f) failure of any advising bank accurately to advise the terms of a Credit;

(g) honor of a presentation on the basis of a forged draft, acceptance, other item or signature or a presentation made in bad faith or as the result of illegal conduct by the beneficiary or a third person;

(h) honor of a presentation up to the amount outstanding on a Credit, even though the draft claims an amount in excess thereof; 

(i) honor of a presentation after the expiration date of any Credit notwithstanding that a presentation was made prior to such expiration date and dishonored by you if subsequently you or any court or other finder of fact determines such presentation is in accordance with this Agreement and should have been honored;(j) dishonor of any presentation that does not strictly comply;

(k) retention of proceeds based on a blocking regulation, or assertion of the rights of a purported governmental entity or a third party to the proceeds;

(l) consequences arising from Act of God, weather condition, riot, civil commotion, insurrection, war, political disturbance, strike, lockout, computer hardware or software failure or error in or inaccessibility of data, interruption  in electric or telephone service, any censorship, law, control or restriction rightfully or wrongfully exercised by any de facto or de jure domestic or foreign government or agency, or other causes beyond your or its control, delay or loss in transit of any letter, draft, acceptance or other item, or loss, delay, or error in the transmission of any electronic message, irrespective of the cause of such event;

(m) failure of any draft to bear adequate reference to any Credit, or failure of any person to note the amount of any draft on the reverse side of any Credit or to surrender or to take up any Credit as required by the terms of any Credit, each of which provisions, if contained in any Credit itself, it is agreed may be waived by you; 

(n) honoring or dishonoring of any Credit containing a condition that does not state the drafts(s) and/or other item(s) to be presented in compliance therewith, it being solely in your discretion as to whether you wish to disregard any such condition or require evidence of compliance with such condition;

(o) the fact that any instructions, oral or written, given to you purporting to be by us or on our behalf and believed by you in good faith and the exercise of ordinary care to be valid which pertain to the opening of any Credit, any extension, increase or other modifica­tion of any Credit or other action to be taken or omitted with reference thereto, were wholly or in part insufficient, erroneous, unauthorized, fraudulent or otherwise invalid; or 

(p) any other act or omission as to which banks are relieved from responsibility under the terms of the ISP (or the UCP, as applicable, or such other Standard Letter of Credit Practice that expressly applies to the relevant Credit) or UCC.

The happening of any one or more of the above-mentioned contingencies shall not affect, impair or prevent the vesting of any of your rights or powers under this Agreement, provided that, you will be liable to us for any direct losses, costs, expenses, damages or liabilities suffered or incurred by us as a result of, or attributable to, your gross negligence or willful misconduct (as judicially determined in a final, non-appealable judgment by a court of competent jurisdiction).  “Standard Letter of Credit Practice” means any domestic or foreign law or standby letter of credit practices applicable in the city in which you issue the applicable Credit or in which you or any of your correspondents advises, confirms or negotiates such Credit, as the case may be.  Such practices shall be (A) of banks that regularly issue standby letters of credits in the particular city, and (B) required or permitted under the ISP (or the UCP, as the case may be).  We shall be deemed conclusively to have waived any right to object to any variation between draft(s), acceptance(s),  or other item(s) called for by any Credit or instructions by us and any draft(s), acceptance(s) or other item(s) accepted by you or your correspondents and to have ratified and approved such action as having been taken at our direction, unless we, promptly, but not later than one Business Day after receipt of such drafts, acceptances or other items or acquisition of knowledge of such variation, notify you in writing of our objection, specifying in reasonable detail, the reasons therefor; provided, however the foregoing shall not increase your responsibilities pursuant to (a) through (p) of this Section 8.  

 9.Notwithstanding suggestions or recommendations made by Bank personnel, we are solely responsible for the content of a Credit, and assume all risks that: (a) reference to nondocumentary requirements will be ignored when presentment is made, or may cause a Credit to be interpreted by a court as a guarantee; (b) ambiguous or inconsistent requirements may be interpreted in a manner not intended by us; (c) permitted payment at a foreign location may invoke the application of laws or rules of practice unfamiliar to us; (d) a Credit is not consistent with or does not satisfy the underlying obligation or any other aspect of the transaction between us and the beneficiary; and (e) any other risks that may be imposed on us under the rules and laws to which any Credit is subject.  No recommendation or drafting of text or the use or nonuse or refusal to use text submitted by the undersigned shall affect the undersigned’s ultimate responsibility for the final text or its receipt.

10.Unless you otherwise agree in writing, you: (a) may issue a Credit by an appropriate S.W.I.F.T. message type and bind us directly and as indemnitor to the rules applicable to S.W.I.F.T. messages; (b) may select any branch or affiliate of yours or any other bank to act as an advising, confirming, and/or negotiating bank under the law and practice of the place where it is located; (c) may assume, unless honor of a presentation is enjoined by a court of competent jurisdiction, that such presentation or other demand or request is nonfraudulent; (d) need not ascertain the authenticity or authority of any purported beneficiary signature, even if you have previously requested a signature guaranty or if in other transactions the beneficiary is a customer or its signature or the authority of any signatory is otherwise known or should be known to you; (e) may, but need not, notify us of your receipt of a request for an amendment or assignment of proceeds, receipt of a presentation, detection of a discrepancy, notification of actions taken to cure, dishonor, or other action, inaction, or communication with or with respect to the beneficiary (other than your decision to honor the presentation); and (f) need not consent to a proposed amendment of any Credit; and (g) may take at least three business days (as defined in the ISP) or banking days (as defined in the UCP), as applicable, to examine a presentation.  Your action in one or more instances shall not waive your right, without notice to us, to use your discretion differently in other instances.

11.We agree that the balance of every account of ours with you and each of our claims against you (including, in each case, any of your offices or branches) existing from time to time may - at your option and without notice of any kind (presentment, protest and other notice of any kind being hereby waived) - be appropriated and applied toward, or set off against, any of the Obligations and we will continue to be liable for any deficiency.

12.[DELETED]

13.The indemnity provisions provided for the benefit of the Bank in the Credit Agreement (as incorporated by reference to Section 9.03 of the Syndicated Credit Agreement (as defined in the Credit Agreement)) include, without limitation, instances in which (a) a beneficiary seeks to enforce a Credit or any advice thereof, sue for wrongful dishonor, seek a judicial determination, or bring any other action or proceeding relating thereto; (b) an advising bank, confirming bank, negotiating bank, or other intermediary seeks to be reimbursed, indemnified or compensated; (c) a third party seeks to enforce our rights or the rights of any beneficiary, negotiating bank or other intermediary, transferee, assignee of proceeds, or holder of a draft, acceptance or other item, or to question, delay, or prevent the honor of any Credit; (d) a government (or other de facto or de jure political body) or governmental agency seeks to regulate, investigate, delay, or prevent honor of a Credit; (e) you undertake the preparation, negotiation, amendment, or “workout”/restructuring of this Agreement or any Credit; or seek to determine, protect, or enforce your rights and remedies under any Credit, this Agreement, or any security agreement, guaranty, credit support, or other undertaking entered into in connection with this Agreement or any Credit; (f) you respond to any notice of alleged fraud, forgery, or illegality in any presentation, including active defense by you in any action in which we seek an injunction against presentation, honor, or payment of any Credit or draft; (g) you are obligated by a court order to pay legal fees or court costs paid, or incurred by us, the beneficiary, or any other party in any dispute involving any Credit, any draft or this Agreement; (h) we fail to duly perform our agreements herein; and/or (i) there occurs any action taken or omitted by you or any such correspondent at our request.  In furtherance and extension and not in limita­tion of the specific provisions set forth in this Agreement, any action taken or omitted by you or by any correspondent of yours, under or in connection with any Credit or the related drafts, other items or property, shall be binding upon us and shall not put you or your correspondent under any resulting liability to us, provided, that we shall not be required to indemnify the Bank for any claims, damages, losses, liabilities, costs or expenses, and, subject to section 14, we shall have a claim against the Bank for direct (but not consequential) damages suffered by us, to the extent found by a court of competent jurisdiction in a final, non-appealable judgment or order to have been caused by (i) the willful misconduct or gross negligence of the Bank in determining whether a request presented under any Credit complied with the terms of such Credit or (ii) the Bank’s failure to pay under any Credit after the presentation to it of a request strictly complying with the terms and conditions of such Credit.  Our agreements in this Section 13 shall survive any payment of the Obligations and any termination of this Agreement.

14.(a) You shall not be liable to us in contract, tort, or otherwise, for any special, indirect, consequential, punitive, or exemplary damages, however arising, whether for wrongful honor, wrongful dishonor, or any other action taken or omitted with respect to any Credit or this Agreement. (b) We must take all reasonable and appropriate action to reduce the amount of damages to be claimed against you. (c) Our aggregate remedies against you for wrongfully honoring a presentation are limited to the amount paid or required to be paid by us with respect to that presentation. (d) We hereby waive the right to obtain an injunction against honor of any Credit or any draft drawn thereunder (or any form of legal relief whose purpose is to prevent payment to the beneficiary) once you or any bank has accepted or negotiated a draft drawn thereunder.

15.[DELETED]

16.[DELETED]

17.Your options, powers and rights specified herein are in addition to those otherwise created or existing.

18.THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT AGAINST US MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE COUNTY OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AS YOU MAY ELECT; AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE UNDERSIGNED HEREBY ACCEPTS, FOR THE UNDERSIGNED AND IN RESPECT OF THE UNDERSIGNED’S PROPERTY, GENERALLY AND UNCON­DITIONALLY THE JURISDICTION AND VENUE OF SUCH COURTS AND HEREBY WAIVES ANY OBJECTION THAT THE UNDERSIGNED MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH ACTION OR PROCEEDING IN SUCH COURT AND ANY CLAIM THAT ANY SUCH ACTION OR PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW OR TO COMMENCE ANY LEGAL ACTION OR PROCEEDING IN ANY OTHER JURISDICTION. ANY ACTION OR PROCEEDING BY US AGAINST YOU OR ANY OF YOUR CORRESPONDENTS RELATING TO THIS AGREEMENT OR ANY CREDIT OR ANY OTHER TRANSACTION CONTEMPLATED BY THIS AGREEMENT SHALL BE BROUGHT IN THE COURTS MENTIONED ABOVE IN THIS SECTION AND SUCH COURTS SHALL HAVE EXCLUSIVE JURISDICTION WITH RESPECT TO ANY SUCH ACTION OR PROCEEDING.

19.  All provisions of this Agreement are subject to variation only by your and the undersigned’s express written agreement.

20.  This Agreement is that certain “Reimbursement Agreement” referenced in the Credit Agreement and constitutes a “Letter of Credit Document” thereunder.  All Credits issued pursuant to this Agreement shall constitute “Letters of Credit” under the Credit Agreement.  This Agreement does not obligate you to issue any proposed Credit for which application has been made until you have agreed in writing to do so and we have complied with any requirement relating to conditions precedent, collateral security, guaranty or credit support established for that Credit.

21.The following terms and provisions shall apply to this Agreement:

The meaning of any term in this or any other Section of this Agreement expressed in the singular shall apply, mutatis mutandis, to the same term expressed in the plural and vice versa; all definitions of agreements, notes or other instruments shall mean such agreements, notes or other instruments as modified or amended in accordance with the terms thereof and all definitions of promissory notes shall include all promissory notes issued in replacement or substitution thereof.

“Agreement” shall mean this Reimbursement Agreement.

“Bank” shall mean Banco Bilbao Vizcaya Argentaria, S.A. and its successors and assigns.

“Business Day” shall have the meaning provided in the Credit Agreement.

“Credit Agreement” shall mean the Uncommitted Line of Credit Letter Agreement dated the date hereof between the Bank and us, as Borrower, as amended from time to time.

“Credits” shall mean all standby letters of credit issued by, or caused to be issued by, the Bank for our account pursuant to this Agreement and the Credit Agreement.

“Dollars” or “$” means lawful currency of the United States of America.

“draft” means and includes any draft or drawing certificate or statement and any and all documents and instruments required to be presented for payment under any Credit and includes a written request, order or demand for the payment of money, whether or not negotiable.

“property” includes (i) goods and merchandise as well as any and all documents relative to, and any right to or interest in, any goods and merchandise or documents and (ii) all instruments, drafts, securities, security entitlements, financial assets, choses in action and any and all other forms of property, whether real or personal.

“Prime Lending Rate” shall mean the rate announced by the Bank from time to time at its principal office as its prime lending rate; any change in the interest rate resulting from a change in the Prime Lending Rate shall be effective on the effective date of each change in such Prime Lending Rate so announced by the Bank; it is understood and agreed that such rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. 

“written” or “in writing” means notice given in any form of writing however transmitted (whether by mail, telex, telefax, electronic or otherwise).

22. WAIVER OF JURY TRIAL.  EXCEPT TO THE EXTENT PROHIBITED BY LAW WHICH CANNOT BE WAIVED, WE AND YOU HEREBY WAIVE TRIAL BY JURY IN CONNECTION WITH ANY ACTION OR PROCEEDING OF ANY NATURE WHATSOEVER ARISING UNDER, OUT OF OR IN CONNECTION WITH THIS AGREEMENT, ANY CREDIT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY AND IN CONNECTION WITH ANY CLAIM, COUNTERCLAIM, OFFSET OR DEFENSE ARISING IN CONNECTION WITH SUCH ACTION OR PROCEEDING, WHETHER ARISING (X) IN CONNECTION WITH ANY ACTION INSTITUTED BY OR ON BEHALF OF YOU, US OR ANY OTHER PERSON OR (Y) UNDER STATUTE (INCLUDING ANY FEDERAL OR STATE CONSTITUTION) OR UNDER THE LAW OF CONTRACT, TORT OR OTHERWISE.

23.         Patriot Act Notice.  The undersigned hereby acknowledges that it has been notified by the Bank that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as amended and supplemented from time to time (the “Patriot Act”), the Bank may be required to obtain, verify and record information that identifies the undersigned, which information includes the name and address of the undersigned and other information that will allow the Bank to identify the undersigned in accordance with the Patriot Act.  The undersigned shall provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Bank in order to assist the Bank in maintaining compliance with the Patriot Act.

[Signature pages follow]

 

  

  

PPL ENERGY SUPPLY, LLC

By________________________

Name:

Title:

[PPL REIMBURSEMENT AGREEMENT]

 

ACCEPTED AND AGREED as of the date first written above:

BANCO BILBAO VIZCAYA ARGENTARIA, S.A.

By__________________________

Name:

Title:

By__________________________

Name:

Title:

[PPL REIMBURSEMENT AGREEMENT]

  

 

SCHEDULE 1

INDICATIVE FEE SCHEDULE AS OF July 1, 2012

Applicable Letter of Credit fees are indicated in the table below and are based on PPL ENERGY SUPPLY, LLC’s ratings of BBB from S&P and Baa2 from Moody’s.  The below Letter of Credit fees are provided for informational purposes only and are subject to change at any time prior to issuance of a Letter of Credit.

	
Borrower’s Ratings

	
Applicable

Percentage for

Letter of Credit Fees

	  	
Applicable

Percentage for

Letter of Credit Fees

 

	
Applicable

Percentage for

Letter of Credit Fees

	  
	
Letter of Credit Tenor

	
Less than 1 year

	  	
1 - 2 years

	
Up to 3 years

	  
	
BBB from S&P & Baa2 from Moody’s

	
1.000%

	  	
1.100%

	
1.200%Unassociated Document

Exhibit 10(d)

 

PPL CORPORATION

EXECUTIVE SEVERANCE PLAN

THIS SEVERANCE PLAN, adopted by PPL Corporation, a Pennsylvania corporation, is being established to provide for the payment of severance benefits to certain of its eligible employees in the event of an involuntary termination of employment meeting the conditions described herein.

 

Section 1. Definitions.  Unless the context clearly indicates otherwise, when used in this Plan:

 

(a) “Act” shall mean the Securities Exchange Act of 1934, as amended, or any successor statute thereto.

 

(b) "Affiliate" shall mean, 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) “Base Salary” means Employee’s annual rate of base salary in effect on the date in question.

 

(d) “Board” means the Board of Directors of PPL Corporation.

 

(e) "Cause" for termination by the Company of the Employee's employment shall mean the occurrence of any of the following:

 

(i) the Employee’s engagement in misconduct which is materially injurious to the Company or any of its Affiliates;

(ii) the Employee’s insubordination after clear and lawful direction;

(iii) the Employee’s commission of a felony in the performance of duties to the Company of any of its Affiliates;

(iv) the Employee’s commission of an act or acts constituting any fraud against or embezzlement from the Company or any of its Affiliates;

(v) the Employee’s material breach of any confidentiality or non-competition covenant entered into between the Employee and the Company or any of its Affiliates;

(vi) the Employee’s employment with a competitor while employed by the Company or any of its Affiliates; or

(vii) egregious violation of Company policy resulting in termination.

The determination of the existence of Cause shall be made by the Committee in good faith, which determination shall be conclusive for the purpose of this Plan.

(f) "Code" shall mean the Internal Revenue Code of 1986, as amended, or any successor thereto, and the regulations and guidance promulgated thereunder.

 

(g) “Committee” means the Chief Executive Officer of PPL Corporation and the Vice President of Human Resources & Services of PPL Services Corporation, or such other person or persons designated by the Compensation, Governance and Nominating Committee of the Board (the “Compensation Committee”) from time to time; provided, however, that if any member of the Committee  is directly affected by an exercise of discretion, the Compensation Committee shall act as the Committee with respect to that matter.

 

(h) “Company" shall mean PPL Corporation and shall include its subsidiaries and any successor to its business and/or assets which assumes and agrees to perform this Plan by operation of law, or otherwise.  For purposes of this Plan, an Employee's employment by (including termination of such employment) and compensation from any subsidiary of the Company shall be deemed employment by and compensation from the Company.

 

(i) “Eligible Employee” means an Employee whose employment with their Employer is terminated due to a Qualifying Termination; provided, however, that, notwithstanding the foregoing:

 

(1)  the term “Eligible Employee” shall not include:

 

(i) any Employee who is eligible to receive in connection with the same Qualifying Termination severance or similar type payments under the provisions of any other severance pay plan of, or any agreement (including but not limited to any employment or severance agreement) with, the Employer or an Affiliate;

(ii) a “specific professional” or part time Employee, of an Employer or any other Employee who is not a regular, full-time Employee (as determined by the Employer in accordance with employment policies and practices established by such Employer);

(iii) any Employee who is not, as of the date immediately prior to his or her termination of employment, being paid on the Employer’s U.S.A. payroll;

(iv) any individual performing services for an Employer who is treated by such Employer as a leased worker or an independent contractor; or

(v) an Employee who is a member of a collective bargaining unit with which an Employer negotiates and with respect to whom no coverage under this Plan has been provided by a collective bargaining agreement; and

 

(2)  the employment of an Employee shall not be considered to have been “involuntarily terminated” (and therefore will not be deemed to have a Qualifying Termination) in any of the following circumstances:

 

(i) an Employee whose employment with an Employer is terminated by reason of a transfer to the employ of another Employer or an Affiliate;

(ii) an Employee whose employment with an Employer is terminated by reason of a transfer to the employ of another entity into which the Employer is merged or otherwise consolidated; provided such entity adopts this Plan;

(iii) an Employee whose employment is terminated upon the expiration of a leave of absence by reason of his or her failure to return to work at such time;

(iv) an Employee whose employment with an Employer is terminated in connection with the sale of stock or the sale by such Employer of all or part of its assets if (i) such Employer determines in its sole discretion that either (A) in connection with such sale such Employee was offered employment for a comparable position at a comparable salary, annual bonus opportunity and employee benefits with the purchaser of the Employer’s stock or assets or (B) such Employee voluntarily elected not to participate in the selection process for such employment and (ii) the purchaser adopts this Plan; or

(v) an Employee whose employment is terminated due to death or Total Disability or voluntary termination.

(j) “Employee” means an employee of an Employer who holds one of the position classifications specified in Schedule A annexed hereto or an equivalent position, as determined from time to time for individual positions by the Committee.

 

(k) “Employer” means the Company and any other Affiliate of the Company which adopts this Plan with the consent of their Board.

 

(l) “Plan” means this PPL Corporation Executive Severance Plan as in effect from time to time.

 

(m)“Qualifying Termination” means a termination of an Eligible Employee’s employment by the Employer without Cause.

 

(n) “Release” means a release to be signed by an Eligible Employee in such form as the Company shall determine, which shall, to the extent permitted by law, waive all claims and actions against the Employers and Affiliates and such other related parties and entities as the Company chooses to include in the release except for claims and actions for benefits provided under the terms of this Plan (which Release is not revoked by the Eligible Employee).

 

(o) “Total Disability” means the Employee is unable to perform with or without reasonable accommodation in all material respects his or her duties and responsibilities to the Company and its Affiliates, by reason of a physical or mental disability or infirmity, which inability is reasonably expected to be permanent and has continued for a period of 12 consecutive months, as reasonably determined by the Company.

 

Section 2. Severance Benefits.  Each Eligible Employee who executes a Release prescribed by the Company within 45 days following a Qualifying Termination (and who does not revoke such Release) shall be entitled to the lump sum cash payment and continuing benefits set forth in Schedule A that corresponds to the Eligible Employee’s position classification as of the date of termination.  In addition to the severance benefits described in Schedule A, each Eligible Employee shall be entitled to receive any unpaid Base Salary through the date of such Eligible Employee’s termination, and prompt reimbursement of any unreimbursed expenses properly incurred by such Eligible Employee in accordance with Company policies prior to the date of such Eligible Employee’s termination.  Such Eligible Employee shall also receive such other benefits, if any, to which such Eligible Employee may be entitled pursuant to the terms and conditions of the employee compensation, incentive, equity, benefit or fringe benefit plans, policies or programs of the Company, other than any Company severance policy.

 

Section 3. Form and Time of Payment.  The cash severance pay benefits payable to an Eligible Employee by his or her Employer under Section 2 shall be paid to such Eligible Employee in a single lump sum less applicable withholdings, except as provided pursuant to Section 4, within 60 days after the Eligible Employee’s date of Qualifying Termination; provided, however, that if such 60-day period begins in one calendar year and ends in a second calendar year, then such severance pay benefits shall not be paid until the second of such two calendar years (regardless of whether the Eligible Employee delivers the Release in the first calendar year or in the second calendar year).

 

Section 4. Tax and Other Withholding.  Each Employer shall withhold from any amount payable to an Eligible Employee pursuant to this Plan, and shall remit to the appropriate governmental authority or the Company, any income, employment or other tax the Employer is required by applicable law to so withhold and remit on behalf of such Eligible Employee, and  any  amounts owed to the Company.

 

Section 5. Plan Administration.  This Plan shall be administered by the Committee.  The Committee shall have discretionary and final authority to interpret and implement the provisions of this Plan and to determine eligibility for benefits under the Plan.  The Committee shall perform all of the duties and exercise all of the powers and discretion that the Committee deems necessary or appropriate for the proper administration of this Plan.  Every interpretation, choice, determination or other exercise by the Committee of any power or discretion given either expressly or by implication to it shall be conclusive and binding upon all parties having or claiming to have an interest under this Plan or otherwise directly or indirectly affected by such action, without restriction, however, upon the right of the Committee to reconsider or redetermine such action. The Committee may adopt such rules and regulations for the administration of this Plan as are consistent with the terms hereof, and shall keep adequate records of its proceedings and acts.  The Committee may employ such agents, accountants and legal counsel (who may be agents, accountants and legal counsel for an Employer) as may be appropriate for the administration of the Plan.  All reasonable administration expenses incurred by the Committee in connection with the administration of the Plan shall be paid by the Employer.

 

Section 6. Claims Procedure.  If any person (hereinafter called the “Claimant”) feels he or she is being denied a benefit to which he or she is entitled under this Plan, such Claimant may file a written claim for said benefit with the Committee.  Within 90 days of the receipt of such claim the Committee shall determine and notify the Claimant as to whether he or she is entitled to such benefit.  Such notification shall be in writing and, if denying the claim for benefit, shall set forth the specific reason or reasons for the denial, make specific reference to the pertinent Plan provisions, and advise the Claimant that he or she may, within 60 days of the receipt of such notice, request in writing to appear before the Committee or its designated representative for a hearing to review such denial.  Any such hearing shall be scheduled at the mutual convenience of the Committee or its designated representative and the Claimant, and at such hearing the Claimant and/or his or her duly authorized representative may examine any relevant documents and present evidence and arguments to support the granting of the benefit being claimed.  The final decision of the Committee with respect to the claim being reviewed shall be made within 60 days following the hearing thereon, and the Committee shall in writing notify the Claimant of its final decision, again specifying the reasons therefor and the pertinent Plan provisions upon which such decision is based.  The final decision of the Committee shall be conclusive and binding upon all parties having or claiming to have an interest in the matter being reviewed.  The Claimant shall have the right to be provided, on request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claim for benefits.  All documents, comments, records, and other information will be considered for review, regardless of whether such information was previously considered or not in the initial denial of a claim.

 

Section 7. Plan Amendment and Termination.  The Company shall have the right and power at any time and from time to time to amend this Plan, in whole or in part, by written document executed by its duly authorized representative and at any time to terminate this Plan; provided, however, that no such amendment or termination shall reduce the amount of severance pay payable under this Plan to a former Employee whose employment with an Employer terminated prior to the date of such amendment or termination, or defer the date for the payment of such former Employee’s benefit hereunder , without the consent of such former Employee.

 

Section 8. Nature of Plan and Rights.  This Plan is an unfunded employee welfare benefit plan and no provision of this Plan shall be deemed or construed to create a trust fund of any kind or to grant a property interest of any kind to any Employee or former Employee.  Any payment which becomes due under this Plan to an Eligible Employee shall be made by his or her Employer out of its general assets, and the right of any Eligible Employee to receive a payment hereunder from his or her Employer shall be no greater than the right of any unsecured general creditor of such Employer.

 

Section 9. No Right to Employment.  Except as expressly provided herein, this Plan shall not interfere in any way with the right of the Company to reduce Employee’s compensation or other benefits or terminate Employee’s employment, with or without Cause.  Any rights that Employee shall have in that regard shall be as set forth in any applicable employment agreement between Employee and the Company.

 

Section 10. Spendthrift Provision.  No right or interest of an Eligible Employee under this Plan may be assigned, transferred or alienated, in whole or in part, either directly or by operation of law, and no such right or interest shall be liable for or subject to any debt, obligation or liability of such Eligible Employee.

 

Section 11. Applicable Law.  This Plan shall be governed and construed in accordance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and, where not pre-empted by ERISA, the laws of the Commonwealth of Pennsylvania, without regard to conflicts of laws principles thereof.

 

Section 12. Effectiveness.  This Plan shall be effective as of the date of adoption by the Compensation Committee on July 26, 2012 and shall remain in effect until terminated pursuant to Section 7 of this Plan.

 

Section 13. Section 409A of the Code.

 

(a) Although the Employer does not guarantee to an Eligible Employee any particular tax treatment relating to the payments and benefits under this Plan, it is intended that such payments and benefits be exempt from, or comply with, Section 409A of Code and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”), and all provisions of this Plan shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A.  Notwithstanding any provision herein to the contrary, in no event shall the Employer be liable for, or be required to indemnify the Eligible Employee for, any liability of the Eligible Employee for taxes or penalties under Code Section 409A.

 

(b) A termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Plan, references to a “termination,” “termination of employment” or like terms shall mean “separation from service”.

 

(c) With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided, that the foregoing clause (iii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect; and (iv) such payments shall be made on or before the last day of the Eligible Employee’s taxable year following the taxable year in which the expense was incurred.

 

(d) Whenever a payment under this Plan specifies a payment period with reference to a number of days (e.g., “payment shall be made within sixty (60) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Employer.

 

(e) If under this Plan, an amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment shall be treated as a separate payment.

 

(f) Notwithstanding anything herein to the contrary, if the Eligible Employee is, as of the date of termination, a “specified employee” for purposes of Treas. Reg. § 1.409A-1(i), then any amount of deferred compensation that is payable to the Eligible Employee hereunder that is neither a short-term deferral within the meaning of Treas. Reg. § 1.409A-1(b)(4) nor within the involuntary separation pay limit under Treas. Reg. § 1.409A-1(b)(9)(iii)(A) will not be paid before the date that is six months after the date of termination, or if earlier, the date of the Eligible Employee’s death.  Any payments to which the Eligible Employee would otherwise be entitled during such non-payment period will be accumulated and paid or otherwise provided to the Eligible Employee on the first day of the seventh month following such date of termination, or if earlier, within 30 days of the Eligible Employee’s death to his or her surviving spouse (or to the Eligible Employee’s estate if the Eligible Employee’s spouse does not survive the Eligible Employee).

 

 

  

 

 

IN WITNESS WHEREOF, this Plan has been executed as of this 26th day of July, 2012.

 

	  	  	
PPL CORPORATION

	  	  	  
	  	  	  
	  	
By:

	  
	  	  	
William H. Spence

Chairman, President and Chief Executive Officer

 

 

 

 

 

Schedule A

 

	
 

 

Position Classification Tier 1

	
Severance Benefits

 

· Severance pay: 2 years of  Eligible Employee’s Base Salary

· Group benefit continuation:  For Employee and covered family members, a lump sum amount, in cash, equal to the aggregate amount of COBRA premiums otherwise payable by Eligible Employee (based upon the COBRA rate in effect on the date of such termination of employment) for the twenty-four (24) month period immediately following the date of termination (assuming for this purpose that COBRA continuation coverage would have been available for such twenty-four (24) month period).

· Career services:  Outplacement assistance at the level offered to executive level employees for a period of 2 years, up to a maximum in fees of $50,000.

 

	
 

Position Classification Tier 2

	
 

· Severance pay:  12 months of Eligible Employee’s Base Salary

· Group benefit continuation:  For Employee and covered family members, a lump sum amount, in cash, equal to the aggregate amount of COBRA premiums otherwise payable by Eligible Employee (based upon the COBRA rate in effect on the date of such termination of employment) for the twelve (12) month period immediately following the date of termination (assuming for this purpose that COBRA continuation coverage would have been available for such twelve (12) month period).

· Career services:  Outplacement assistance at the level offered to executive level employees for a period of 12 months, up to a maximum in fees of $25,000.

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