Document:

<![CDATA[Confirmation of Forward Sale Transaction between PPL Corp. & Merrill Lynch Intl.]]>

 Exhibit 10.2 

 
 

 
 CONFIRMATION 
 April 20, 2012 
  

	

			
	To:	  	 PPL Corporation
 Two North
Ninth Street

		  	Allentown, PA 18101-1179
		
	From:	  	 Merrill Lynch International

BofA Merrill Lynch Financial Centre
 2 King
Edward Street
 London EC1A 1HQ

  
  

Dear Sirs, 
 The purpose of this letter
agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between Merrill Lynch International (“Party A” or “Dealer”), acting through its agent Merrill Lynch, Pierce,
Fenner & Smith Incorporated (the “Agent”), and PPL Corporation (“Party B” or “Counterparty”) on the Trade Date specified below (this “Transaction”). This Confirmation constitutes a
“Confirmation” as referred to in the ISDA Master Agreement specified below. 
  

	1.	The definitions and provisions contained in the 2000 ISDA Definitions (the “2000 Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the
“2002 Definitions” and, together with the 2000 Definitions, the “Definitions”), each as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any
inconsistency between the 2002 Definitions and the 2000 Definitions, the 2002 Definitions will govern. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. 

This Confirmation evidences a complete and binding agreement between Party A and Party B as to the terms of the Transaction to which this
Confirmation relates. This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if Party A and Party B had executed an agreement in such form on
the Trade Date (but without any Schedule except for the election of the laws of the State of New York as the governing law, without regard to New York’s choice of laws doctrine other than Title 14 of Article 5 of the New York General
Obligations Law). In the event of any inconsistency between provisions of that Agreement and this Confirmation, this 

 
Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby agree that no Transaction other than the Transaction to which this Confirmation
relates shall be governed by the Agreement. For purposes of the 2002 Definitions, this Transaction is a Share Forward Transaction. 
 Party A and Party B each represents to the other that it has entered into this Transaction in reliance upon such tax, accounting, regulatory, legal, and financial advice as it deems necessary and not upon
any view expressed by the other. 
  

	2.	The terms of the particular Transaction to which this Confirmation relates are as follows: 

 General Terms: 
  

			
	Party A:	  	Merrill Lynch International
		
	Party B:	  	PPL Corporation
		
	Trade Date:	  	April 20, 2012
		
	Effective Date:	  	April 25, 2012
		
	Base Amount:	  	Initially, 295,440 Shares, subject to the provisions set forth under “Conditions to Effectiveness” below. On each Settlement Date, the Base Amount shall be reduced by
the number of Settlement Shares for such Settlement Date.
		
	Maturity Date:	  	The earlier of (i) July 10, 2013 (or, if such date is not a Scheduled Trading Day, the next following Scheduled Trading Day) and (ii) the date on which the Base Amount is reduced
to zero.
		
	Forward Price:	  	On the Effective Date, the Initial Forward Price, and on any other day, the Forward Price as of the immediately preceding calendar day multiplied by the sum of (i) 1 and
(ii) the Daily Rate for such day; provided that on each Forward Price Reduction Date, the Forward Price in effect on such date shall be the Forward Price otherwise in effect on such date minus the Forward Price Reduction Amount for such
Forward Price Reduction Date.
		
	Initial Forward Price:	  	USD $27.02 per Share.
		
	Daily Rate:	  	For any day, (i)(A) USD-Federal Funds Rate for such day minus (B) the Spread divided by (ii) 365.

  
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	USD-Federal Funds Rate:	  	For any day, the rate set forth for such day opposite the caption “Federal funds”, as such rate is displayed on the page “FedsOpen <Index>
<GO>” on the BLOOMBERG Professional Service, or any successor page; provided that if no rate appears for any day on such page, the rate for the immediately preceding day for which a rate appears shall be used for such
day.
		
	Spread:	  	0.75%
		
	Forward Price Reduction Dates:	  	As set forth in Schedule I.
		
	Forward Price Reduction Amount:	  	For each Forward Price Reduction Date, the Forward Price Reduction Amount set forth opposite such date on Schedule I.
		
	Shares:	  	Common Stock, $.01 par value per share, of Party B (also referred to herein as the “Issuer”) (Exchange identifier: “PPL”).
		
	Exchange:	  	The New York Stock Exchange.
		
	Related Exchange(s):	  	All Exchanges.
		
	Clearance System:	  	DTC.
		
	Calculation Agent:	  	Merrill Lynch International. Following any determination or calculation by the Calculation Agent hereunder, in its capacity as such, upon a written request by Party B, the
Calculation Agent will provide to Party B, by e-mail to the e-mail address provided by Party B in such written request, a report (in a commonly used file format for the storage and manipulation of financial data) displaying, in reasonable detail,
the basis for such determination or calculation, it being understood that the Calculation Agent shall not be obligated to disclose any proprietary models or other confidential or proprietary information used by it for such determination or
calculation.

  
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 Settlement Terms: 
  

			
	Settlement Date:	  	The Maturity Date (if on such date the Base Amount is greater than zero) or any Scheduled Trading Day following the Effective Date and up to and including the Maturity Date, as
designated by Party A pursuant to “Termination Settlement” below. In connection with any Settlement Date that occurs on the Maturity Date, Party B shall deliver to Party A a written notice (a “Settlement Notice”) that satisfies
the Settlement Notice Requirements and is delivered to Party A at least (i) three Scheduled Trading Days prior to the Maturity Date, if Physical Settlement applies, and (ii) 20 Scheduled Trading Days (or other period of time as agreed between Party
A and Party B) prior to the Maturity Date, if Cash Settlement or Net Share Settlement applies; provided that if Physical Settlement (or, subject to clause (z) below, Net Share Settlement) applies and the relevant Settlement Date specified
above (including a Settlement Date occurring on the Maturity Date) (or, with respect to Net Share Settlement, the Settlement Date specified pursuant to clause (z) below, if applicable) is not a Clearance System Business Day, the Settlement Date
shall be the next following Clearance System Business Day, and (z) if Cash Settlement or Net Share Settlement applies and Party A shall have fully unwound its hedge during an Unwind Period by a date that is more than three Scheduled Trading
Days prior to the relevant Settlement Date specified above, Party A may, by written notice to Party B, specify any Scheduled Trading Day prior to such originally specified Settlement Date as the Settlement Date.
		
	Settlement Shares:	  	With respect to any Settlement Date other than the Maturity Date, a number of Shares, not to exceed the Base Amount, designated as such by Party A pursuant to “Termination
Settlement” below, or with respect to the Maturity Date, the Base Amount on such date.
		
	Settlement Method:	  	Physical Settlement, Cash Settlement or Net Share Settlement.

  
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	Settlement Method Election:	  	Applicable, at the election of Party B as set forth in a Settlement Notice that satisfies the Settlement Notice Requirements; provided that Physical Settlement shall apply
(i) if no Settlement Method is validly selected, (ii) with respect to any Settlement Shares in respect of which Party A is unable, in its commercially reasonable judgment, to unwind its hedge by the end of the relevant Unwind Period in compliance
with Rule 10b-18 under the Exchange Act (as defined below) (assuming that purchases of Shares, in connection with such Settlement Notice, by Party A on each Unwind Day during such Unwind Period were instead made by Party B) or due to the lack of
sufficient liquidity in the Shares on any Unwind Day during such Unwind Period; provided that Party A shall notify Party B of such Settlement Shares to be subject to Physical Settlement no later than 8:00 P.M., New York City time, on the last Unwind
Day of such Unwind Period; (iii) to any Termination Settlement Date (as defined below under “Termination Settlement”) or (iv) if the Maturity Date is a Settlement Date and no notice of Cash Settlement or Net Share Settlement has been
validly delivered in accordance with the provisions described above under “Settlement Date”, in respect of such Settlement Date. Net Share Settlement shall be deemed to be included as an additional settlement method under Section 7.1 of
the 2002 Definitions.
		
	Settlement Notice Requirements:	  	Notwithstanding any other provision hereof, a Settlement Notice delivered by Party B that specifies Cash Settlement or Net Share Settlement will not be effective to establish a
Settlement Date or require Cash Settlement or Net Share Settlement unless Party B delivers to Party A with such Settlement Notice a representation signed by Party B substantially in the following form: “As of the date of this Settlement Notice,
Party B is not aware of any material nonpublic information concerning itself or the Shares, and is designating the date contained herein as a Settlement Date in good faith and not as part of a plan or scheme to evade compliance with the federal
securities laws.”

  
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	Unwind Day:	  	 In respect of each Settlement Notice and related Settlement Date, each Exchange Business Day that is not a Suspension Day during the
period (the “Unwind Period”) from, and including, the first Exchange Business Day following the date Party B validly elects Cash Settlement or Net Share Settlement in respect of such Settlement Date to, and including, the date that
precedes such Settlement Date by one Settlement Cycle, subject to “Termination Settlement” below. If any Unwind Day is a Disrupted Day, the Calculation Agent shall make commercially reasonable adjustments to the terms of this
Transaction (including, without limitation, the Cash Settlement Amount and the 10b-18 VWAP) to account for the occurrence of such Disrupted Day, with such adjustments to be based, in the Calculation Agent’s commercially reasonable judgment, on,
among other factors, the duration of any Market Disruption Event, if any, giving rise to such Disrupted Day and the volume, historical trading patterns and trading price of the Shares.

 
 For greater clarity, with respect to any Settlement Date (x) in respect of which Cash
Settlement applies, Party A shall be deemed to have completed unwinding its hedge in respect of the portion of this Transaction to be settled on such Settlement Date when it purchases (or, to the extent applicable, unwinds derivative positions
(including, but not limited to, swaps or options related to the Shares), resulting in Party A’s synthetic purchase of) an aggregate number of Shares equal to the number of Settlement Shares for such Settlement Date; and (y) in respect of which
Net Share Settlement applies, Party A shall be deemed to have completed unwinding its hedge in respect of the portion of this Transaction to be settled on such Settlement Date when it purchases (or, to the extent applicable, unwinds derivative
positions (including, but not limited to, swaps or options related to the Shares), resulting in Party A’s synthetic purchase of) an aggregate number of Shares having an aggregate purchase price equal to the Net Share Purchase Price for such
Settlement Date.

		
	Suspension Day:	  	Any Exchange Business Day on which Party A reasonably determines based on the advice of counsel that it is appropriate or necessary in light of

  
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		  	legal, regulatory or self-regulatory requirements or related policies or procedures for Party A to refrain from the market activity in which it would otherwise engage in
connection its hedge positions with respect to this Transaction on such day. Party A shall notify Party B if it receives such advice from its counsel.
		
	Market Disruption Event:	  	Section 6.3(a)(ii) of the 2002 Definitions is hereby amended by replacing clause (ii) in its entirety with “(ii) an Exchange Disruption, or” and inserting immediately
following clause (iii) the phrase “; in each case that the Calculation Agent determines is material.”
		
	Exchange Act:	  	The Securities Exchange Act of 1934, as amended from time to time.
		
	Physical Settlement:	  	On any Settlement Date in respect of which Physical Settlement applies, Party B shall deliver to Party A through the Clearance System the Settlement Shares for such Settlement
Date, and Party A shall deliver to Party B, by wire transfer of immediately available funds to an account designated by Party B, an amount in cash equal to the Physical Settlement Amount for such Settlement Date, on a delivery versus payment
basis. If, on any Settlement Date, the Shares to be delivered by Party B to Party A hereunder are not so delivered (the “Deferred Shares”), and a Forward Price Reduction Date occurs during the period from, and including, such
Settlement Date to, but excluding, the date such Shares are actually delivered to Party A, then, at Party A’s election in its sole and absolute discretion, the portion of the Physical Settlement Amount payable by Party A to Party B in respect
of the Deferred Shares shall be reduced by an amount equal to the Forward Price Reduction Amount for such Forward Price Reduction Date, multiplied by the number of Deferred Shares. For the avoidance of doubt, no Forward Price Reduction
Amount for a Forward Price Reduction Date shall be applied to reduce the Forward Price more than once.
		
	Physical Settlement Amount:	  	For any Settlement Date in respect of which Physical Settlement applies, an amount in cash equal to the product of (i) the Forward Price on such Settlement Date and (ii) the
number of Settlement Shares for such Settlement Date.

  
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	Cash Settlement:	  	On any Settlement Date in respect of which Cash Settlement applies, if the Cash Settlement Amount for such Settlement Date is a positive number, Party A will pay such Cash
Settlement Amount to Party B by wire transfer of immediately available funds to an account designated by Party B. If the Cash Settlement Amount is a negative number, Party B will pay the absolute value of such Cash Settlement Amount to Party A
by wire transfer of immediately available funds to an account designated by Party A. Such amounts shall be paid on the Settlement Date.
		
	Cash Settlement Amount:	  	For any Settlement Date in respect of which Cash Settlement applies, an amount determined by the Calculation Agent equal to (1) the product of (i) (A) the arithmetic average of
the Forward Prices on each Unwind Day in the relevant Unwind Period (calculated assuming no reduction to the Forward Price for any Forward Price Reduction Date that occurs during such Unwind Period, it being understood, for the avoidance of doubt,
that the related Forward Price Reduction Amount(s) shall be accounted for pursuant to clause (2) below) minus (B) the arithmetic average of the 10b-18 VWAPs on each Unwind Day in such Unwind Period, and (ii) the number of Settlement Shares
for such Settlement Date, minus (2) the product of (i) the Forward Price Reduction Amount for each Forward Price Reduction Date that occurs during such Unwind Period, and (ii) the number of Settlement Shares with respect to which Party A has
not unwound its hedge as of such Forward Price Reduction Date.
		
	Net Share Settlement:	  	On any Settlement Date in respect of which Net Share Settlement applies, if the number of Net Share Settlement Shares is a (i) negative number, Party A shall deliver a number of
Shares to Party B equal to the absolute value of the Net Share Settlement Shares, or (ii) positive number, Party B shall deliver to Party A the Net Share Settlement Shares; provided that if Party A determines in its good faith, reasonable
judgment that it would be

  
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		  	required to deliver Net Share Settlement Shares to Party B, Party A may elect to deliver a portion of such Net Share Settlement Shares on one or more dates prior to the
applicable Settlement Date. In no event will Party B be required to return any Net Share Settlement Shares Party A has delivered to it pursuant to the proviso to the immediately preceding sentence.
		
	Net Share Settlement Shares:	  	For any Settlement Date in respect of which Net Share Settlement applies, a number of Shares equal to (a) the number of Settlement Shares for such Settlement Date minus
(b) the number of Shares Party A actually purchases during the relevant Unwind Period for a total purchase price (the “Net Share Purchase Price”) equal to (1) the product of (i) the arithmetic average of the Forward Prices on each Unwind
Day in such Unwind Period (calculated assuming no reduction to the Forward Price for any Forward Price Reduction Date that occurs during such Unwind Period, it being understood, for the avoidance of doubt, that the related Forward Price Reduction
Amount(s) shall be accounted for pursuant to clause (2) below) and (ii) the number of Settlement Shares for such Settlement Date, minus (2) the product of (i) the Forward Price Reduction Amount for each Forward Price Reduction Date that
occurs during such Unwind Period and (ii) the number of Shares with respect to which Party A has not unwound its hedge as of such Forward Price Reduction Date.
		
	10b-18 VWAP:	  	For any Unwind Day, the volume-weighted average price per Share at which the Shares trade as reported in the composite transactions for the Exchange on such Unwind Day, excluding
(i) trades that do not settle regular way, (ii) opening (regular way) reported trades on the Exchange on such Unwind Day, (iii) trades that occur in the last ten minutes before the scheduled close of trading on the Exchange on such Unwind Day and
ten minutes before the scheduled close of the primary trading session in the market where the trade is effected, and (iv) trades on such Unwind Day that do not satisfy the requirements of Rule 10b-18(b)(3) under the Exchange Act, as quoted on
Bloomberg Page “PPL <Equity> AQR SEC” (or any successor

  
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		  	thereto), or if such price is not so reported on such Exchange Business Day for any reason or the reported price is manifestly erroneous, such price shall be as reasonably
determined by the Calculation Agent.
		
	Settlement Currency:	  	USD.
		
	Failure to Deliver:	  	Inapplicable.
		
	Other Applicable Provisions:	  	To the extent Party B is obligated to deliver Shares to Party A pursuant hereto, the provisions of Sections 9.2 (last sentence only), 9.8, 9.9, 9.10 and 9.11 of the 2002
Definitions will be applicable as if “Physical Settlement” applied to the Transaction; provided that each representation in Section 9.11 of the 2002 Definitions relating to restrictions, obligations, limitations or requirements
under applicable securities laws that exist as a result of the fact that Party B is the issuer of the Shares shall be deemed to be deleted.

 Adjustments: 
  

			
	 Potential Adjustment Event:
  

Method of Adjustment:
	  	 For purposes hereof, the definition of “Potential Adjustment Event” shall not include clause (iii) thereof.

 
 Calculation Agent Adjustment, subject to the provisions set forth in clause (b) under
“Acceleration Events” below. Notwithstanding anything in the 2002 Definitions to the contrary, the Calculation Agent may make an adjustment pursuant to Calculation Agent Adjustment to any one or more of the Base Amount, the Forward Price
and any other variable relevant to the settlement or payment terms of this Transaction to account for the diluting or concentrative effect of the applicable Potential Adjustment Event on the theoretical value of the Shares.

	Additional Adjustment:	  	If the Calculation Agent determines that the actual cost to Party A, over any one-month period, of borrowing a number of Shares equal to the Base Amount to hedge its exposure to
this Transaction exceeds a weighted average rate equal to 25 basis points per annum, the Calculation Agent shall reduce the Forward Price in order to compensate Party A for the amount by which such cost exceeded a weighted average rate equal to 25
basis

  
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		 	points per annum during such period. The Calculation Agent shall notify Party B prior to making any such adjustment to the Forward Price and, upon the request of Party B,
Party A shall provide adequate detail of its stock loan costs for the applicable one month period.

 Account Details: 
  

			
	Payments to Party A:	  	To be advised under separate cover or telephone confirmed prior to each Settlement Date.
		
	Payments to Party B:	  	To be advised under separate cover or telephone confirmed prior to each Settlement Date.
		
	Delivery of Shares to Party A:	  	To be advised.
		
	Delivery of Shares to Party B:	  	To be advised.

  

	3.	Other Provisions: 

 Conditions to
Effectiveness: 
 The effectiveness of this Confirmation on the Effective Date shall be subject to (i) the condition that the
representations and warranties of Party B contained in the Underwriting Agreement dated April 9, 2012 among Party B, Party A, Morgan Stanley & Co. LLC, as Forward Counterparty, and Morgan Stanley & Co. LLC and Merrill Lynch,
Pierce, Fenner & Smith Incorporated, as Representatives of the Several Underwriters (the “Underwriting Agreement”) and any certificate delivered pursuant thereto by Party B are true and correct on the Effective Date as if made as
of the Effective Date, (ii) the condition that Party B has performed all of the obligations required to be performed by it under the Underwriting Agreement on or prior to the Effective Date, (iii) the condition that Party B has delivered
to Party A an opinion of counsel dated as of the Effective Date with respect to matters set forth in Section 3(a) of the Agreement (subject to customary exceptions and limitations), (iv) the satisfaction or waiver of all of the conditions
set forth in Section 5 of the Underwriting Agreement, (v) the condition that the Underwriting Agreement has not been terminated pursuant to Section 6, Section 7 or Section 9 thereof, and (vi) the condition that neither
of the following has occurred (A) in the commercially reasonable judgment of Party A, Party A is unable to borrow and deliver for sale a 

  
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number of Shares equal to the Base Amount, or (B) in the commercially reasonable judgment of the Calculation Agent, the Calculation Agent determines either it is impracticable for Party A to
do so or Party A would incur a stock loan cost of more than a rate equal to 200 basis points per annum to do so (in which event set forth in each of subclause (A) and (B) of this clause (vi), this Confirmation shall be effective, but the
Base Amount for this Transaction shall be the number of Shares Party A is able to so borrow at or below a stock loan cost of 200 basis points per annum. Party B’s obligations hereunder shall be subject to the condition precedent that each
of Party A and each Affiliate of Party A that is a Forward Seller or Underwriter (as such terms are defined in the Underwriting Agreement) and any other Forward Seller and Underwriter shall have performed, on or prior to the Effective Date, all of
the obligations required to be performed by it prior to the Effective Date under the Underwriting Agreement. 
 Representations and
Agreements of Party B: 
 Party B (i) has such knowledge and experience in financial and business affairs as to be capable of evaluating
the merits and risks of entering into this Transaction and (ii) has consulted with its own legal, financial, accounting and tax advisors in connection with this Transaction. 
 As of the date hereof, Party B is not the subject of any civil proceeding of a judicial or administrative body of competent jurisdiction that could reasonably be expected to impair materially Party
B’s ability to perform its obligations hereunder. 
 Party B will by the next succeeding New York Business Day notify Party A upon
obtaining knowledge of the occurrence of any event that would constitute an Event of Default or a Potential Adjustment Event with respect to Party B. 
 Additional Representations, Warranties and Agreements of Party B:
 Party B hereby represents
and warrants to, and agrees with, Party A as of the date hereof that: 
  

	 	(a)	Any Shares, when issued and delivered in accordance with the terms of this Transaction, will be duly authorized and validly issued, fully paid and nonassessable, and
the issuance thereof will not be subject to any preemptive or similar rights. 

  

	 	(b)	Party B has reserved and will keep available at all times, free from preemptive rights, out of its authorized but unissued Shares, solely for the purpose of issuance
upon settlement of this Transaction as herein provided, the full number of Shares as shall be issuable at such time upon settlement of this Transaction, assuming Physical Settlement. All Shares so issuable shall, upon such issuance, be approved
for listing or quotation on the Exchange. 

  

	 	(c)	 Party B agrees to provide Party A at least 5 days’ written notice (an “Issuer Repurchase Notice”) prior to executing any repurchase of
Shares 

  
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by Party B or any of its subsidiaries (or entering into any contract that would require, or give the option to, Party B or any of its subsidiaries, to purchase or repurchase Shares), whether out
of profits or capital or whether the consideration for such repurchase is cash, securities or otherwise (an “Issuer Repurchase”), that alone or in the aggregate would result in the Base Amount Percentage (as defined below) being (i)
equal to or greater than 8.0% of the outstanding Shares or (ii) greater by 0.5% or more than the Base Amount Percentage at the time of the immediately preceding Issuer Repurchase Notice (or in the case of the first such Issuer Repurchase
Notice, greater than the Base Amount Percentage as of the later of the date hereof or the immediately preceding Settlement Date, if any). The “Base Amount Percentage” as of any day is the fraction (1) the numerator of which is
the sum of (a) the Base Amount hereunder and (b) the “Base Amount” as such term is defined in substantially identical forward transaction with respect to 4,950,000 Shares pursuant to a confirmation between Party A and Party B
dated April 9, 2012 (the “Base Confirmation”), and (2) the denominator of which is the number of Shares outstanding on such day. 

  

	 	(d)	No filing with, or approval, authorization, consent, license registration, qualification, order or decree of, any court or governmental authority or agency, domestic or
foreign, is necessary or required for the execution, delivery and performance by Party B of this Confirmation and the consummation of this Transaction (including, without limitation, the issuance and delivery of Shares on any Settlement Date) except
(i) such as have been obtained under the Securities Act of 1933, as amended (the “Securities Act”), and (ii) as may be required to be obtained under state securities laws. 

 

	 	(e)	Party B agrees not to make any Issuer Repurchase if, immediately following such Issuer Repurchase, the Base Amount Percentage would be equal to or greater than 8.0%.

  

	 	(f)	Party B shall not, and shall refrain from taking, and shall cause its affiliated purchasers (within the meaning of Rule 10b-18 under the Exchange Act) to refrain from
taking any action (including, without limitation, any direct purchases by Party B or any of its affiliated purchasers or any purchases by a party to a derivative transaction with Party B or any of its affiliated purchasers), either under this
Confirmation, under an agreement with another party or otherwise, that would cause any purchases of Shares by Party A or any of its affiliates in connection with any Cash Settlement or Net Share Settlement of this Transaction not to meet the
requirements of the safe harbor provided by Rule 10b-18 under the Exchange Act if such purchases were made by Party B. 

  
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	 	(g)	Party B will not engage in any “distribution” (as defined in Regulation M under the Exchange Act (“Regulation M”)) that would cause a
“restricted period” (as defined in Regulation M) to occur during any Unwind Period. 

  

	 	(h)	In addition to any other requirements set forth herein, Party B agrees not to elect Cash Settlement or Net Share Settlement if, in the reasonable judgment of Party B
(or if in the reasonable judgment of Party A, as previously notified in writing to Party B), such settlement or Party A’s related market activity would result in a violation of the U.S. federal securities laws or any other federal or state law
or regulation applicable to Party B. 

 Agreements of the Parties and Covenant of Party B: 

The parties acknowledge and agree that any Shares delivered by Party B to Party A on any Settlement Date will be newly issued Shares and when delivered by
Party A (or an affiliate of Party A) to securities lenders from whom Party A (or an affiliate of Party A) borrowed Shares in connection with hedging its exposure to this Transaction will be freely saleable without further registration or other
restrictions under the Securities Act, in the hands of those securities lenders, irrespective of whether such stock loan is effected by Party A or an affiliate of Party A (provided that such Shares may be subject to resale restrictions if the status
of any such securities lender would cause any such resale restrictions to apply by virtue of its share ownership in Party B, status as an “affiliate” of Party B or otherwise). Accordingly, subject to the provisions set forth below
under the heading “Private Placement Procedures,” Party B agrees that the Shares that it delivers to Party A on each Settlement Date will not bear a restrictive legend and that such Shares will be deposited in, and the delivery thereof
shall be effected through the facilities of, the Clearance System. 
 Covenants of Party A: 

 

	 	(a)	Unless the provisions set forth below under “Private Placement Procedures” shall be applicable, Party A shall use any Shares delivered by Party B to Party A
on any Settlement Date to return to securities lenders to close out open Share loans created by Party A or an affiliate of Party A in the course of Party A’s or such affiliate’s hedging activities related to Party A’s exposure under
this Confirmation. 

  

	 	(b)	In connection with bids and purchases of Shares in connection with any Cash Settlement or Net Share Settlement of this Transaction, Party A shall, and shall cause
its affiliates to, execute such purchases to unwind its hedge of its exposure to this Transaction in compliance with the requirements of the safe harbor provided by Rule 10b-18 under the Exchange Act, as if such provisions were applicable to
such purchases; provided that Party A’s obligations under this clause (b) shall be subject to applicable Securities and Exchange Commission or Staff no-action letters or interpretations as appropriate and subject to any delays
between execution and reporting of a trade of the Shares on the applicable securities exchange or quotation system and other circumstances reasonably beyond Party A’s or such affiliates’ control. 

  
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 Insolvency Filing: 
 Notwithstanding anything to the contrary herein, in the Agreement or in the Definitions, upon any Insolvency Filing in respect of the Issuer, this Transaction shall automatically terminate on the date
thereof without further liability of either party to this Confirmation to the other party (except for any liability in respect of any breach of representation or covenant by a party under this Confirmation prior to the date of such Insolvency
Filing). 
 The parties hereto agree and acknowledge that (1) at any point prior to any Insolvency Filing in respect of the Issuer, Party B
shall have the unilateral right to elect Physical Settlement of this Transaction pursuant to the provisions set forth above under the heading “Settlement Terms”; and (2) this Transaction shall automatically terminate on the date of
any Insolvency Filing pursuant the provisions set forth in the immediately preceding paragraph solely to the extent that Party B failed to elect Physical Settlement of this Transaction pursuant to the provisions set forth above under the heading
“Settlement Terms” prior to the relevant Insolvency Filing. 
 Extraordinary Dividends: 

If a record date for an Extraordinary Dividend occurs during the period from, and including, the Effective Date to, but excluding, the Maturity Date (or,
if later, the last date on which Shares are delivered by Party B to Party A in settlement of this Transaction), then, on the date on which Party B pays such Extraordinary Dividend to holders of record of the Shares, Party B shall pay, to Party A, an
amount in cash equal to the product of such Extraordinary Dividend and the Base Amount as of such record date. “Extraordinary Dividend” means the per Share amount of any cash dividend or distribution declared by the Issuer with respect to
the Shares that is specified by the board of directors of Party B as an “extraordinary” dividend. 
 Acceleration Events:

 The following events shall each constitute an “Acceleration Event”: 

 

	 	(a)	Stock Borrow Events. The Calculation Agent determines that (A) Party A (or an affiliate of Party A) is unable to hedge Party A’s exposure to this
Transaction because of the lack of sufficient Shares being made available for Share borrowing by lenders, or (B) Party A (or an affiliate of Party A) would incur a cost to borrow Shares to hedge its exposure to this Transaction that is greater
than a rate equal to 200 basis points per annum (a “Stock Borrow Event”); 

  

	 	(b)	 Dividends and Other Distributions. On any day occurring after the Trade Date and prior to the Maturity Date Party B declares a
distribution, issue or dividend to existing holders of the Shares of (i) any cash dividend 

  
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(other than an Extraordinary Dividend) to the extent the sum of all cash dividends having an ex-dividend date during the period from and including any Forward Price Reduction Date (with the Trade
Date being a Forward Price Reduction Date for purposes of this clause (b) only) to but excluding the next subsequent Forward Price Reduction Date (with the Maturity Date being the final Forward Price Reduction Date for purposes of this clause
(b)(i) only) exceeds, on a per Share basis, the Forward Price Reduction Amount set forth opposite the relevant Forward Price Reduction Date on Schedule I or (ii) share capital or securities of another issuer acquired or owned (directly or
indirectly) by Party B as a result of a spin-off or other similar transaction, for which the related record date occurs during the period from, and including, the Effective Date to, but excluding, the Maturity Date (or, if later, the last date on
which Shares are delivered by Party B to Party A in settlement of this Transaction) or (iii) any other type of securities (other than Shares), rights, warrants or other assets, for payment (cash or other consideration) at less than the
prevailing market price as determined by the Calculation Agent for which the related record date occurs during the period from, and including, the Effective Date to, but excluding, the Maturity Date (or, if later, the last date on which Shares are
delivered by Party B to Party A in settlement of this Transaction). To the extent the declaration of a distribution, issue or dividend contemplated by this paragraph (b) would also be considered to be the type of event to which Calculation
Agent Adjustment would apply as specified under “Adjustments – Method of Adjustment” above, the provisions of this paragraph (b) will apply and Calculation Agent Adjustment shall not apply; 

 

	 	(c)	ISDA Early Termination Date. Party A has the right to designate an Early Termination Date pursuant to Section 6 of the Agreement;

  

	 	(d)	 Other ISDA Events. The date of the announcement of a firm intention to pursue a transaction that, if consummated, would result in an
Extraordinary Event (other than a Nationalization, Insolvency or Delisting) (and, for the avoidance of doubt, no Additional Disruption Event shall be applicable with respect to the definition of Extraordinary Event contained in the 2002 Definitions)
or the occurrence of any Change in Law, Insolvency, Nationalization or Delisting; provided that the definition of “Tender Offer” provided in Section 12.1(d) of the 2002 Definitions is hereby amended by replacing “10%”
in the third line thereof with “20%”; provided further that in case of a Delisting, in addition to the provisions of Section 12.6(a)(iii) of the 2002 Definitions, (x) it will also constitute a Delisting if the Exchange is
located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or their respective successors) and (y) if the
Shares are immediately re-listed, re-traded or re-quoted on any such exchange, then such exchange or quotation system shall be deemed to be 

  
 -16-

	 	
the Exchange; provided further that the definition of “Change in Law” provided in Section 12.9(a)(ii) of the 2002 Definitions is hereby amended by replacing the phrase
“the interpretation” in the third line thereof with the phrase “or public announcement of the formal or informal interpretation”; and provided further that “any applicable law or regulation”, as used in
Section 12.9(a)(ii) of the 2002 Definitions shall include the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, any rules and regulations promulgated thereunder and any similar law or regulation, without regard to
Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted or rule or regulation promulgated, and the consequences set forth below under
“Termination Settlement” shall apply to any Change in Law arising from any such act, rule or regulation; or 

  

	 	(e)	Ownership Event. The Calculation Agent determines that, on any day, as a result of this Transaction, the Share Amount (as defined below) for such day is
equal to or exceeds the Post-Effective Limit (as defined below) for such day (if any applies). 

 For purposes of clause
(e) above, the “Share Amount” as of any day is the number of Shares that Party A and any person whose ownership position would be aggregated with that of Party A (Party A or any such person, a
“Party A Person”) under any law, rule, regulation or regulatory order that for any reason becomes applicable to ownership of Shares after the Trade Date (“Applicable Laws”), owns, beneficially owns,
constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership of under the Applicable Laws, as determined by the Calculation Agent. The “Post-Effective Limit” means (x) the minimum
number of Shares that would give rise to reporting or registration obligations or other requirements (including obtaining prior approval from any person or entity) of a Party A Person, or would result in an adverse effect on a Party A
Person, under the Applicable Laws, as determined by the Calculation Agent, minus (y) 0.5% of the number of Shares outstanding. 
 Party A represents and warrants to and agrees with Party B that (i) Party A does not know, as of the Trade Date, of any event or circumstance that will cause the Share Amount to exceed
the Post-Effective Limit on any day during the term of this Transaction and (ii) Party A will not knowingly cause the Share Amount to equal or exceed the Post-Effective Limit on any day during the term of this Transaction. 

For the avoidance of doubt, if any of the above events also constitutes an Insolvency Filing, then the consequences set forth under “Insolvency
Filing” above shall apply. 
 Termination Settlement: 
 Upon the occurrence of any Acceleration Event, Party A shall have the right to designate, upon at least one Scheduled Trading Day’s notice, any Scheduled Trading Day following such occurrence to be a
Settlement Date hereunder (a “Termination Settlement Date”) to which Physical Settlement shall apply, and to select the number of Settlement Shares 

  
 -17-

 
relating to such Termination Settlement Date; provided in the case of an Acceleration Event arising out of an Ownership Event, the number of Settlement Shares so designated by Party A
shall not exceed the number of Shares necessary to reduce the Share Amount to the Post-Effective Limit and (ii) in the case of an Acceleration Event arising out of a Stock Borrow Event the number of Settlement Shares so designated by Party A
shall not exceed the number of Shares as to which such Stock Borrow Event exists. If, upon designation of a Termination Settlement Date by Party A pursuant to the preceding sentence, Party B fails to deliver the Settlement Shares relating to
such Termination Settlement Date when due or otherwise fails to perform obligations within its control in respect of this Transaction, it shall be an Event of Default with respect to Party B and Section 6 of the Agreement shall
apply. If an Acceleration Event occurs during an Unwind Period, then, on the Termination Settlement Date relating to such Acceleration Event, notwithstanding any election to the contrary by Party B, (i) the Settlement Date for such
Unwind Period shall be the Termination Settlement Date; and (ii) Cash Settlement or Net Share Settlement shall apply to the portion of the Settlement Shares relating to such Unwind Period as to which Party A has unwound its hedge and Physical
Settlement shall apply in respect of (x) the remainder (if any) of such Settlement Shares relating to such Unwind Period and (y) the Settlement Shares designated by Party A in respect of such Termination Settlement Date. UNDER NO
CIRCUMSTANCES WILL THE SETTLEMENT AMOUNT UPON EARLY TERMINATION OR AN ACCELERATION EVENT INCLUDE AN ADJUSTMENT FOR THE EFFECTS OF AN EXTRAORDINARY DIVIDEND OR A CHANGE IN EXPECTED DIVIDENDS. 
 Private Placement Procedures: 
 If Party B is unable to comply with the provisions of
“Covenant of Party B” above because of a change in law or a change in the policy of the Securities and Exchange Commission or its staff, or Party A otherwise determines that in its reasonable opinion any Settlement Shares to be delivered
to Party A by Party B may not be freely returned by Party A or its affiliates to securities lenders as described under “Covenant of Party B” above, then delivery of any such Settlement Shares (the “Restricted Shares”) shall be
effected pursuant to Annex A hereto, unless waived by Party A. 
 Rule 10b5-1: 
 It is the intent of Party A and Party B that following any election of Cash Settlement or Net Share Settlement by Party B, the purchase of Shares by Party A during any Unwind Period comply with the
requirements of Rule 10b5-1(c)(1)(i)(B) of the Exchange Act and that this Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c). 
 Party B acknowledges that (i) during any Unwind Period Party B does not have, and shall not attempt to exercise, any influence over how, when or whether to effect purchases of Shares by Party A (or
its agent or affiliate) in connection with this Confirmation and (ii) Party B is entering into the Agreement and this Confirmation in good faith and not as part of a plan or scheme to evade compliance with federal securities laws including,
without limitation, Rule 10b-5 promulgated under the Exchange Act. 

  
 -18-

 Party B hereby agrees with Party A that during any Unwind Period Party B shall not communicate, directly or
indirectly, any Material Non-Public Information (as defined herein) to any Trading Personnel (as defined below). For purposes of this Transaction, “Material Non-Public Information” means information relating to Party B or the Shares
that (a) has not been widely disseminated by wire service, in one or more newspapers of general circulation, by communication from Party B to its shareholders or in a press release, or contained in a public filing made by Party B with the
Securities and Exchange Commission and (b) a reasonable investor might consider to be of importance in making an investment decision to buy, sell or hold Shares. For the avoidance of doubt and solely by way of illustration, information
should be presumed “material” if it relates to such matters as dividend increases or decreases, earnings estimates, changes in previously released earnings estimates, significant expansion or curtailment of operations, a significant
increase or decline of orders, significant merger or acquisition proposals or agreements, significant new products or discoveries, extraordinary borrowing, major litigation, liquidity problems, extraordinary management developments, purchase or sale
of substantial assets, or other similar information. For purposes of this Transaction, “Trading Personnel” means any employee on the trading side of Merrill Lynch International, including Francois Lu and Yury Mulman and does not include
Jeffrey Kulik, David McShane, Jake Mendelsohn or John Servidio. 
 Maximum Share Delivery: 

Notwithstanding any other provision of this Confirmation, in no event will Party B be required to deliver on any Settlement Date, whether pursuant to
Physical Settlement, Net Share Settlement, Termination Settlement or any Private Placement Settlement, more than a number of Shares equal to 1.75, multiplied by the initial Base Amount to Party A, subject to reduction by the aggregate number
of Shares, if any, delivered by Party B on any prior Settlement Date. 
 Transfer and Assignment: 

Party A may assign or transfer any of its rights or delegate any of its duties hereunder, without the prior written consent of Party B, to any affiliate
of Party A whose obligations hereunder and under the Agreement are guaranteed by Bank of America Corporation, so long as (a) such assignee or transferee is organized under the laws of the United States, any State thereof or the District of
Columbia; (b) Party B will not be required to pay to such assignee or transferee an amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) of the Agreement greater than the amount in respect of which Party B would have been
required to pay Party A in the absence of such assignment or transfer; (c) Party B will not receive a payment from which an amount has been withheld or deducted on account of a Tax under Section 2(d)(i) of the Agreement in excess of that
which Party A would have been required to so withhold or deduct in the absence of such assignment or transfer; and (d) no Event of Default, Potential Event of Default or Termination Event will occur as a result of such assignment or transfer.
Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Party A to purchase, sell, receive or deliver any Shares or other 

  
 -19-

 
securities to or from Party B, Party A may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities and otherwise to perform Party A’s
obligations in respect of this Transaction, and any such designee may assume such obligations. Party A shall be discharged of its obligations to Party B to the extent of any such performance. 
 Role of Agent: 
 In connection with the Transaction confirmed hereby, the Agent, a
broker-dealer registered under the Exchange Act, will be responsible for: (a) effecting the Transaction (though the Agent shall not be responsible for negotiating the terms of the Transaction), (b) issuing all required confirmations and
statements to Counterparty relating to the Transaction, (c) as between Dealer and the Agent, extending or arranging for the extension of any credit to Counterparty in connection with the Transaction, (d) maintaining required books and
records relating to the Transaction, (e) complying, to the extent applicable, with Rule 15c3-1 under the Exchange Act and (f) unless otherwise permitted under applicable law or applicable interpretations thereof, receiving, delivering and
safeguarding funds and securities in compliance with Rule 15c3-3 under the Exchange Act. The Agent is acting hereunder solely in its capacity as agent (and not as principal or guarantor) in connection with the Transaction entered into between
Counterparty and Dealer, pursuant to instructions received from Counterparty and Dealer, and shall have no responsibility or liability to Counterparty or Dealer arising from any failure by either of them to pay or perform any obligation hereunder.
Each of Counterparty and Dealer acknowledges the foregoing and agrees that it will proceed solely against the other to collect or recover any funds or securities owing to it in connection with or arising from the Transaction. The Agent shall not be
deemed to have endorsed or guaranteed the Transaction confirmed hereby and shall have no responsibility or liability to either Counterparty or Dealer except for gross negligence or willful misconduct in the performance of its duties as agent. Dealer
is regulated by the Financial Services Authority and is a member of the London Stock Exchange, the Irish Stock Exchange, Virt-x and ISMA. Dealer has entered into the Transaction as principal. The time of the Transaction shall be notified to
Counterparty upon request. 
 Indemnity: 
 Party B agrees to indemnify Party A and its affiliates and their respective directors, officers, agents and controlling parties (Party A and each such affiliate or person being an “Indemnified
Party”) from and against any and all losses, claims, damages and liabilities, joint and several, incurred by or asserted against such Indemnified Party arising out of any breach of any covenant or representation made by Party B in this
Confirmation or the Agreement, and Party B will reimburse any Indemnified Party for all reasonable expenses (including reasonable legal fees and expenses) as they are incurred in connection with the investigation of, preparation for, or defense of
any pending or threatened claim or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto. Party B will not be liable under this Indemnity paragraph to the extent that any such loss, claim, damage,
liability or expense is found in a final and nonappealable judgment by a court to have resulted from Party A’s negligence or willful misconduct. 

  
 -20-

 Notice: 
  

			
	Non-Reliance:	  	Applicable
		
	Additional Acknowledgments:	  	Applicable
		
	Agreements and Acknowledgments Regarding Hedging Activities:	  	Applicable

  

	4.	The Agreement is further supplemented by the following provisions: 

 No Collateral or Setoff: 
 Notwithstanding Section 6(f) or any other provision of the
Agreement or any other agreement between the parties to the contrary, the obligations of Party B hereunder are not secured by any collateral. Obligations under this Transaction shall not be set off against any other obligations of the parties,
whether arising under the Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and no other obligations of the parties shall be set off against obligations under this Transaction,
whether arising under the Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such right of setoff. In calculating any amounts under
Section 6(e) of the Agreement, notwithstanding anything to the contrary in the Agreement, (a) separate amounts shall be calculated as set forth in such Section 6(e) with respect to (i) this Transaction and (ii) all other
Transactions, and (b) such separate amounts shall be payable pursuant to Section 6(d)(ii) of the Agreement. 
 Delivery of
Cash: 
 For the avoidance of doubt, nothing in this Confirmation shall be interpreted as requiring Party B to deliver cash in respect of the
settlement of this Transaction, except in circumstances where the required cash settlement thereof is permitted for classification of the contract as equity by ASC Topic 815, Derivatives and Hedging as in effect on the Trade Date (including,
without limitation, where Party B so elects to deliver cash or fails timely to elect to deliver Shares in respect of such settlement). 

Status of Claims in Bankruptcy: 
 Party A
acknowledges and agrees that this confirmation is not intended to convey to Party A rights with respect to the transactions contemplated hereby that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings of Party B;
provided, however, that nothing herein shall limit or shall be deemed to limit Party A’s right to pursue remedies in the event of a breach by Party B of its obligations and agreements with respect to this Confirmation and the Agreement; and
provided further, that nothing herein shall limit or shall be deemed to limit Party A’s rights in respect of any transaction other than this Transaction. 

  
 -21-

 Limit on Beneficial Ownership: 
 Notwithstanding any other provisions hereof, Party A shall not be entitled to take delivery of any Shares deliverable hereunder (whether in connection with the purchase of Shares on any Settlement Date or
any Termination Settlement Date, any Private Placement Settlement or otherwise) to the extent (but only to the extent) that, after such receipt of any Shares hereunder, and after taking into any Shares concurrently deliverable to Party A pursuant to
the Base Confirmation, (i) the Share Amount would exceed the Post-Effective Limit, (ii) Party A’s ultimate parent entity would purchase, acquire or take (as such terms are used in the Federal Power Act) at any time on the relevant
date in excess of 8.0% of the outstanding Shares or (iii) Party A and each person subject to aggregation of Shares with Party A under Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder (the “Party A
Group”) would directly or indirectly beneficially own (as such term is defined for purposes of Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder) in excess of 8.0% of the then outstanding Shares (each of
such events in clauses (i), (ii) and (iii), an “Excess Ownership Position”). Any purported delivery hereunder shall be void and have no effect to the extent (but only to the extent) that, after such delivery, and after taking into any
Shares concurrently deliverable to Party A pursuant to the Base Confirmation, an Excess Ownership Position would exist. If any delivery owed to Party A hereunder is not made, in whole or in part, as a result of this provision, Party B’s
obligation to make such delivery shall not be extinguished and Party B shall make such delivery as promptly as practicable after, but in no event later than one Exchange Business Day after, Party A gives notice to Party B that, after such delivery,
an Excess Ownership Position would not exist. Party A shall use its commercially reasonable efforts to eliminate the existence of an Excess Ownership Position prior to any Settlement Date. 
 In addition, notwithstanding anything herein to the contrary, if any delivery owed to Party A hereunder is not made, in whole or in part, as a result of the immediately preceding paragraph, Party A shall
be permitted to make any payment due in respect of such Shares to Party B in two or more tranches that correspond in amount to the number of Shares delivered by Party B to Party A pursuant to the immediately preceding paragraph. 

Miscellaneous: 
  

	 	(a)	Addresses for Notices. For the purpose of Section 12(a) of the Agreement: 

 

			
	Address for notices or communications to Party A:
		
	Address:	  	 Merrill Lynch International
  

BofA Merrill Lynch Financial Centre
 2 King
Edward Street
 London EC1A 1HQ

  
 -22-

			
		
		  	With a copy to its Agent:
		
		  	 Merrill Lynch, Pierce, Fenner & Smith Incorporated
 One Bryant Park
 New York, NY 10036
 Attention: John Servidio, Assistant General Counsel
 Telephone No.: 646-855-7127

Facsimile No.: 704-208-2869

	
	Address for notices or communications to Party B:
		
	Address:	  	 PPL Corporation
 Two North
Ninth Street
 Allentown, PA 18101-1179

Attention: Treasurer
 Telephone No.:
(610) 774-5151
 Facsimile No.: (610) 774-5235

	With a copy to:	  	
		
		  	 Simpson Thacher & Bartlett LLP
 425 Lexington Avenue
 New York, NY 10017
 Attention: Joyce Xu, Esq.
 Telephone No.: (212) 455-3680

Facsimile No: (212) 455-2502

  

	 	(b)	Waiver of Right to Trial by Jury. Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any
suit, action or proceeding relating to this Confirmation. Each party (i) certifies that no representative, agent or attorney of the other party has represented, expressly or otherwise, that such other party would not, in the event of such a
suit action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter into this Confirmation by, among other things, the mutual waivers and certifications herein.

 Acknowledgements: 
 The parties hereto intend for: 
  

	 	(a)	this Transaction to be a “securities contract” as defined in Section 741(7) of Title 11 of the United States Code (the “Bankruptcy Code”),
qualifying for the protections under Section 555 of the Bankruptcy Code; 

  

	 	(b)	a party’s right to liquidate this Transaction and to exercise any other remedies upon the occurrence of any Event of Default under the Agreement with respect to
the other party to constitute a “contractual right” as defined in the Bankruptcy Code; 

  
 -23-

	 	(c)	Party A to be a “financial institution” within the meaning of Section 101(22) of the Bankruptcy Code; and 

 

	 	(d)	all payments for, under or in connection with this Transaction, all payments for the Shares and the transfer of such Shares to constitute “settlement
payments” as defined in the Bankruptcy Code. 

 If Party A is a bank regulated by the Federal Deposit Insurance Corporation,
(i) Party A recognizes and intends that this Transaction is, and shall constitute, a “qualified financial contract” as that term is defined in 12 U.S.C. 1821(e)(8)(d)(i), as the same may be amended, modified, or supplemented from time
to time; and (ii) Party A represents and warrants that it is authorized by appropriate corporate action under applicable law to enter into this Transaction as evidenced by the execution hereof by an officer of Party A at the level of vice
president or higher. 
 Other Forward: 
 Party A acknowledges that Party B has entered into a substantially identical forward transaction for its Shares on the date hereof (the “Other Forward”) with Morgan Stanley & Co. LLC.
Party A and Party B agree that if Party B designates a Settlement Date with respect to the Other Forward and for which Cash Settlement or Net Share Settlement is applicable, and the resulting Unwind Period for the Other Forward coincides for any
period of time with an Unwind Period for this Transaction (each, an “Overlap Unwind Period”), Party B shall notify Party A prior to the commencement of each such Overlap Unwind Period, and Party A shall only be permitted to purchase Shares
to unwind its hedge in respect of this Transaction on every second Exchange Business Day that is not a Suspension Day during such Overlap Unwind Period, commencing on the first day of such Overlap Unwind Period. 

Severability: 
 If any term, provision,
covenant or condition of this Confirmation, or the application thereof to any party or circumstance, shall be held to be invalid or unenforceable in whole or in part for any reason, the remaining terms, provisions, covenants, and conditions hereof
shall continue in full force and effect as if this Confirmation had been executed with the invalid or unenforceable provision eliminated, so long as this Confirmation as so modified continues to express, without material change, the original
intentions of the parties as to the subject matter of this Confirmation and the deletion of such portion of this Confirmation will not substantially impair the respective benefits or expectations of parties to this Agreement; provided, however, that
this severability provision shall not be applicable if any provision of Section 2, 5, 6 or 13 of the Agreement (or any definition or provision in Section 14 to the extent that it relates to, or is used in or in connection with any such
Section) shall be so held to be invalid or unenforceable. 
 [Remainder of page intentionally left blank] 

  
 -24-

 Please confirm that the foregoing correctly sets forth the terms of our agreement by signing and returning
this Confirmation. 
  

			
	Yours faithfully,
	
	MERRILL LYNCH INTERNATIONAL
		
	By:	 	 /s/ Elayne H. Wilson

	Name:	 	Elayne H. Wilson
	Title:	 	Vice President

  

			
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (solely as Agent for Dealer)
		
	By:	 	 /s/ Jake Mendelsohn

	Name:	 	Jake Mendelsohn
	Title:	 	Managing Director

 Confirmed as of the date first written above: 
 PPL CORPORATION 
  

			
	By:	 	 /s/ Russell R. Clelland

	Name:	 	Russell R. Clelland
	Title:	 	Assistant Treasurer

  

  
 -25-

 ANNEX A 
 PRIVATE PLACEMENT PROCEDURES 
  

	(i)	If Party B delivers the Restricted Shares pursuant to this clause (i) (a “Private Placement Settlement”), then delivery of Restricted Shares by Party B
shall be effected in customary (for issuers with a market capitalization comparable to, and in the same industry as, Party B) private placement procedures with respect to such Restricted Shares reasonably acceptable to Party A; provided that if, on
or before the date that a Private Placement Settlement would occur, Party B has taken, or caused to be taken, any action that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Party B to
Party A (or any affiliate designated by Party A) of the Restricted Shares or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Restricted Shares by Party A (or any such affiliate of Party A) or
Party B fails to deliver the Restricted Shares when due or otherwise fails to perform obligations within its control in respect of a Private Placement Settlement, it shall be an Event of Default with respect to Party B and Section 6 of the
Agreement shall apply. The Private Placement Settlement of such Restricted Shares shall include customary (for issuers with a market capitalization comparable to, and in the same industry as, Party B) representations, covenants, blue sky and other
governmental filings and/or registrations, indemnities to Party A, due diligence rights (for Party A or any designated buyer of the Restricted Shares by Party A), opinions and certificates, and such other documentation as is customary (for issuers
with a market capitalization comparable to, and in the same industry as, Party B) for private placement agreements, all reasonably acceptable to Party A. In the case of a Private Placement Settlement, Party A shall, in its good faith discretion,
adjust the amount of Restricted Shares to be delivered to Party A hereunder in a commercially reasonable manner to reflect the fact that such Restricted Shares may not be freely returned to securities lenders by Party A and may only be saleable by
Party A at a discount to reflect the lack of liquidity in Restricted Shares. Notwithstanding the Agreement or this Confirmation, the date of delivery of such Restricted Shares shall be the second Clearance System Business Day following notice by
Party A to Party B of the number of Restricted Shares to be delivered pursuant to this clause (i). For the avoidance of doubt, delivery of Restricted Shares shall be due as set forth in the previous sentence and not be due on the Settlement Date or
Termination Settlement Date that would otherwise be applicable. 

  

	(ii)	 If Party B delivers any Restricted Shares in respect of this Transaction, Party B agrees that (i) such Shares may be transferred by and among
Party A and its affiliates and (ii) after the minimum “holding period” within the meaning of Rule 144(d) under the Securities Act has elapsed after the applicable Settlement Date, Party B shall (so long as Party A or any such
affiliate is not an “affiliate” of Party B within the meaning of Rule 144 under the Securities Act) promptly remove, or cause the transfer agent for the Shares to remove, any legends referring to any

  
 A-1

	 	
transfer restrictions from such Shares upon delivery by Party A (or such affiliate of Party A) to Party B or such transfer agent of seller’s and broker’s representation letters
customarily delivered by Party A or its affiliates in connection with resales of restricted securities pursuant to Rule 144 under the Securities Act, each without any further requirement for the delivery of any certificate, consent, agreement,
opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Party A (or such affiliate of Party A). 

  
 A-2<![CDATA[Amended & Restated Management Agreement]]>

 Exhibit 10.9 
 FIRST AMENDED AND RESTATED 
 MANAGEMENT AGREEMENT

 This FIRST AMENDED AND RESTATED
MANAGEMENT AGREEMENT (this “Agreement”) is entered into as of 23 day of April, 2012, and effective as of December 23, 2011, by and among (i) Giraffe Holding, Inc., a Delaware corporation
(“Parent”), (ii) The Gymboree Corporation, a Delaware corporation (the “Gymboree”) and (iii) Bain Capital Partners, LLC (“Bain” or the “Manager”). As used herein,
“Company” means Gymboree and its subsidiaries. 
 RECITALS 

WHEREAS, Parent owned all of the outstanding stock of Acquisition Sub, and Parent and Acquisition Sub entered into an
Agreement and Plan of Merger, dated as of October 11, 2010 (the “Merger Agreement”), among (i) Parent, (ii) Giraffe Acquisition Corporation, a Delaware corporation, (“Acquisition Sub”) and
(iii) Gymboree, pursuant to which Acquisition Sub merged with and into Gymboree (the “Merger”) on the terms and subject to the conditions set forth in the Merger Agreement with Gymboree continuing as
the surviving corporation; 
 WHEREAS, in connection with the Merger and related transactions
(including the Merger Agreement), the Manager provided advice, analysis and assistance, including without limitation with respect to due diligence investigations and the structuring and negotiation of debt facilities and other matters; and

 WHEREAS, the parties hereto previously entered into that certain Management and Agreement, dated as of
October 22, 2010 (the “Original Agreement”), in order for the Company to retain the Manager to provide management, consulting and financial and other advisory services (“Services”) to the Company; and

 WHEREAS, the parties desire to enter into this Agreement, to amend and restate the Original Agreement in its
entirety, effective as of the date of this Agreement. 
 AGREEMENT 

NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto, intending to be legally
bound, hereby agree as follows: 
 1. Services. The Manager hereby agrees that it will provide the
following Services to Parent and/or the Company: 
 (a) advice in connection with the negotiation
and consummation of agreements, contracts, documents and instruments necessary to provide Parent and/or the Company with financing on terms and conditions satisfactory to Parent and/or the Company, as applicable; 

(b) financial, managerial and operational advice in connection with day-to-day operations, including,
without limitation, advice with respect to the development and implementation of strategies for improving the operating, marketing and financial performance of the Company; 

 (c) advice in connection with financing, acquisition,
disposition, merger, business combination and change of control transactions involving Parent and/or the Company (however structured); and 
 (d) such other services (which may include financial and strategic planning and analysis, consulting services, human resources and executive recruitment services and other services) as the Manager, on the
one hand, and Parent and the Company, on the other hand, may from time to time agree to in writing. 
 The
Manager will devote, in its discretion, such time and efforts to the performance of services contemplated hereby as the Manager deems reasonably necessary or appropriate; provided, however, that no minimum number of hours is required to be
devoted by the Manager on a weekly, monthly, annual or other basis. Parent and the Company each acknowledge that the Manager’s services are not exclusive to Parent or the Company and that the Manager will render similar services to other
Persons. The Manager, Parent and the Company understand that Parent and/or the Company may, at times, engage one or more investment bankers or financial advisers to provide services in addition to, but not in lieu of, Services provided by the
Manager under this Agreement. In providing services to Parent and/or the Company, the Manager will act as an independent contractor and it is expressly understood and agreed that this Agreement is not intended to create, and does not create, any
partnership, agency, joint venture or similar relationship and that no party hereto has the right or ability to contract for or on behalf of any other party hereto or to effect any transaction for the account of any other party hereto. 

2. Payment of Fees. 

(a) During the Term (as such term is defined in Section 3 hereof), the Company will pay to the
Manager (or such affiliates of the Manager as the Manager may designate), the Periodic Fee in exchange for the ongoing Services provided by the Manager under this Agreement, such fee being payable by the Company quarterly in advance on or before the
start of each calendar quarter. The “Periodic Fee” shall be an aggregate annual periodic fee of $3,000,000; provided, however, that from and after the date hereof the Periodic Fee shall be reduced by $270,000 (the
“Credit”) until such time as the Manager elects to eliminate such Credit by prior written notice to the Company and cause the Periodic Fee to be $3,000,000. The Periodic Fee will be prorated for any partial period of less than three
months. The Manager may elect in its sole discretion to defer the receipt of all or a portion of the Periodic Fee; provided, that any such election to defer shall be made in accordance with and subject to the applicable requirements of
Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 
 (b) During the Term, the Manager will advise the Company in connection with financing, acquisition, disposition and change of control transactions involving the Company or any of its direct or indirect
subsidiaries (however structured), and the Company will pay to the Manager (or such affiliates of the Manager as the Manager may designate) an aggregate fee (each a “Subsequent Fee”) in connection with each such transaction equal to one
percent (1%) of the gross transaction value of such transaction. 

 (c) In the case of an Initial Public Offering or a Change of
Control (as defined below), the Company shall pay to the Manager (or such affiliates of the Manager as the Manager may designate), in addition to the fees payable above, a lump sum amount equal to the net present value (using a discount rate equal
to the then prevailing yield on U.S. Treasury Securities of like maturity) of the Periodic Fees, without taking into account any reductions made pursuant to Section 2(a) above, that would have been payable to the Manager with respect to the
period from the date of such Initial Public Offering or Change of Control until the end of the Term then in effect (without giving any effect to an early termination of the Term as a result of such Change of Control or Initial Public Offering). Such
fee to be due and payable at the closing of such transaction and in the case of financing transactions, whether or not any such financing is actually committed or drawn upon. For purposes of this Agreement, (i) “Change of
Control” shall mean (a) any change in the ownership of the capital stock of Parent or the Company if, immediately after giving effect thereto, any Person (or group of Persons acting in concert) other than the Manager and its affiliates
will have the direct or indirect power to elect a majority of the members of the board of directors of Parent or the Company or (b) any change in the ownership of the capital stock of Parent or the Company if, immediately after giving effect
thereto, the Manager and its affiliates shall, directly or indirectly, beneficially own less than 50% of the capital stock of Parent or the Company; and (ii) “Initial Public Offering” shall mean the initial public offering and
sale of common stock of Parent or the Company for cash pursuant to an effective registration statement under the Securities Act of 1933, as in effect from time to time, registered on Form S-1 (or any successor form under the Securities Act of
1933, as in effect from time to time). 
 Each payment made pursuant to this Section 2 will be paid by wire
transfer of immediately available federal funds to the account specified on Schedule 1 hereto, or to such other account(s) as the Manager may specify to the Company in writing prior to such payment. 

3. Term. This Agreement will continue in full force and effect until December 31, 2020; provided that
this Agreement shall be automatically extended on such date and each December 31 thereafter for an additional year unless the Company or the Manager provides written notice of its desire not to automatically extend the term of this Agreement to
the other parties hereto at least 90 days prior to such December 31; and provided further, however, that (a) the Manager may cause this Agreement to terminate at any time and (b) this Agreement will terminate automatically upon
an Initial Public Offering or a Change of Control unless the Company and the Manager determine otherwise (the period on and after the date hereof through the termination hereof being referred to herein as the “Term”); and
provided further, however, that each of (x) Sections 4, 5 and 8 hereof (whether in respect of or relating to services rendered during or after the Term) will all survive any termination of this Agreement to the maximum extent permitted
under applicable law and (y) any and all accrued and unpaid obligations of the Company owed under Section 2 hereof will be paid promptly upon any termination of this Agreement. At the end of the Term, all obligations of the Manager under
this Agreement will terminate and any subsequent services rendered by the Manager to the Company will be separately compensated. 

 4. Expenses; Indemnification. 

(a) Expenses. The Company will pay on demand all Reimbursable Expenses. As used herein,
“Reimbursable Expenses” means all (i) reasonable out-of-pocket expenses incurred from and after the effective date of the Merger relating to their Affiliated Funds’ (as defined below) investment in, the operations of, or
the services provided by the Manager to, the Company or any of its affiliates from time to time (including, without limitation, all air travel (by first class on a commercial airline or by charter, as determined by the Manager) and other reasonable
travel related expenses), (ii) reasonable out-of-pocket legal expenses incurred by the Manager or its affiliates from and after the date hereof in connection with the enforcement of rights or taking of actions under this Agreement, under
Acquisition Sub’s certificate of incorporation and bylaws, or under any subscription agreements, stockholders agreements, registration rights agreements, voting agreements or similar agreements entered into with the Company in connection with
investments in the Company (subject to any applicable limitations on expense reimbursement rights expressly set forth in such agreements) and (iii) expenses incurred from and after the date hereof by the Manager and its affiliates, which the
Manager, in its sole discretion, deems properly allocable to the Company under this Agreement. 

(b) Indemnity and Liability. The Company hereby indemnifies and agrees to exonerate and hold the
Manager, each Affiliated Fund of the Manager, and each of their respective former, current or future, direct or indirect, directors, officers, employees, agents, advisors and affiliates, each former, current or future, direct or indirect holder of
any equity interests or securities of the Manager or any Affiliated Fund of the Manager (whether such holder is a limited or general partner, member, stockholder or otherwise), each former, current or future assignee of the Manager or any Affiliated
Fund of the Manager and each former, current or future director, officer, employee, agent, advisor, general or limited partner, manager, management company, member, stockholder, affiliate, controlling person, representative and assignee of any of
the foregoing (each such person or entity, a “Related Person”) (collectively, the “Indemnitees”) free and harmless from and against any and all actions, causes of action, suits, claims, liabilities, damages and
costs and expenses in connection therewith (including reasonable attorneys’ fees and expenses) incurred by the Indemnitees or any of them before or after the date of this Agreement (collectively, the “Indemnified Liabilities”),
as a result of, arising out of, or in any way relating to (i) this Agreement, the Merger Agreement, the Merger, any transaction to which the Company or any of its affiliates is a party, or any other circumstances with respect to the Company or
any of its affiliates or (ii) operations of, or services provided by the Manager to, the Company or any of its affiliates from time to time (including but not limited to any indemnification obligations assumed or incurred by any Indemnitee to
or on behalf of the Company, or any of its accountants or other representatives, agents or affiliates) except for any such Indemnified Liabilities arising from such Indemnitee’s willful misconduct. If and to the extent that the foregoing
undertaking may be unavailable or unenforceable for any reason, the Company hereby agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible under applicable law. For purposes
of this Section 4(b), “willful misconduct” will be deemed to have occurred only if so found in a 

 
final non-appealable judgment of a court of competent jurisdiction to such effect, in which case to the extent any of the foregoing limitations is so determined to apply to any Indemnitee as to
any previously advanced indemnity payments made by the Company, then such payments shall be promptly repaid by such Indemnitee to the Company. The rights of any Indemnitee to indemnification hereunder will be in addition to any other rights any such
Person may have under any other agreement or instrument referenced above or any other agreement or instrument to which such Indemnitee is or becomes a party or is or otherwise becomes a beneficiary or under law or regulation. Notwithstanding the
foregoing or any other provisions hereof, the rights of the Indemnitees (other than the Manager) hereunder may only be exercised on their behalf by the Manager. In this Agreement, (i) “Person” means any individual or
corporation, association, partnership, limited liability company, joint venture, joint stock or other company, business trust, trust, organization, or other entity of any kind and (ii) the term “Affiliated Funds” means, with
respect to any specified investment fund, any other investment fund that directly or indirectly controls, is controlled by or is under common control with such specified fund or that has the same general partner or primary investment advisor as such
specified fund (or a general partner or primary investment advisor that controls, is controlled by or is under common control with the general partner or primary investment advisor of such specified fund). 

(c) Indemnification Priority. The Company hereby acknowledges that the rights to indemnification,
advancement of expenses and/or insurance provided pursuant to this Section 4 may also be provided to certain Indemnitees by Bain Capital Fund X, L.P. and certain of its affiliates and Affiliated Funds (other than the Company) (collectively, the
“Affiliate Indemnitors”) and by insurers providing insurance coverage to the Affiliated Indemnitors. The Company hereby agrees that, as between itself and the Affiliate Indemnitors and their insurers (i) the Company is the
indemnitor of first resort with respect to all such indemnifiable claims against such Indemnitees, whether arising under this Agreement or otherwise (i.e., its obligations to such Indemnitees are primary and any obligation of the Affiliate
Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Indemnitees are secondary), (ii) the Company shall be required to advance the full amount of expenses incurred by such
Indemnitees and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement (or any other agreement between the
Company and such Indemnitee), without regard to any rights such Indemnitee may have against the Affiliate Indemnitors or any of their insurers and (iii) the Company irrevocably waives, relinquishes and releases the Affiliate Indemnitors from
any and all claims against the Affiliate Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Company agrees to indemnify the Affiliate Indemnitors directly for any amounts that the Affiliate
Indemnitors pay as indemnification or advancement on behalf of any such Indemnitee and for which such Indemnitee may be entitled to indemnification from the Company in connection with serving as a director or officer (or equivalent titles) of the
Company. The Company further agrees that no advancement or payment by the Affiliate Indemnitors on behalf of any such Indemnitee with respect to any claim for which such Indemnitee has sought indemnification from the Company shall affect the
foregoing and the Affiliate 

 
Indemnitors shall be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Indemnitee against the Company, and the Company shall cooperate with the
Indemnitee in pursuing such rights. 
 5. Disclaimer and Limitation of Liability; Opportunities.

 (a) Disclaimer; Standard of Care. The Manager does not make any representations or
warranties, express or implied, in respect of the Services to be provided by the Manager hereunder. In no event will the Manager or any of the Indemnitees be liable to Parent, the Company or any of their respective affiliates for any act, alleged
act, omission or alleged omission that does not constitute willful misconduct of the Manager as determined by a final, non-appealable determination of a court of competent jurisdiction. 

(b) Freedom to Pursue Opportunities. In recognition that the Manager and its respective Indemnitees
currently have, and will in the future have or will consider acquiring, investments in numerous companies with respect to which the Manager or its Indemnitees may serve as an advisor, a director or in some other capacity, and in recognition that the
Manager and its respective Indemnitees have a myriad of duties to various investors and partners, and in anticipation that Parent and/or the Company, on the one hand, and the Manager (or one or more affiliates, associated investment funds or
portfolio companies, or clients of the Manager), on the other hand, may engage in the same or similar activities or lines of business and have an interest in the same areas of corporate opportunities, and in recognition of the benefits to be derived
by Parent and the Company hereunder and in recognition of the difficulties that may confront any advisor who desires and endeavors fully to satisfy such advisor’s duties in determining the full scope of such duties in any particular situation,
the provisions of this Section 5(b) are set forth to regulate, define and guide the conduct of certain affairs of Parent and the Company as they may involve the Manager. Except as the Manager may otherwise agree in writing after the date
hereof: 
 (i) The Manager and its Indemnitees will have the right: (A) to directly or
indirectly engage in any business (including, without limitation, any business activities or lines of business that are the same as or similar to those pursued by, or competitive with, Parent, the Company or any of their respective subsidiaries) or
invest, own or deal in securities of any other Person so engaged in any business, (B) to directly or indirectly do business with any client or customer of Parent, the Company or any of their respective subsidiaries or, (C) to take any
other action that the Manager believes in good faith is necessary to or appropriate to fulfill its obligations as described in the first sentence of this Section 5(b) and (D) not to present potential transactions, matters or business
opportunities to Parent, the Company or any of their respective subsidiaries, and to pursue, directly or indirectly, any such opportunity for itself, and to direct any such opportunity to another Person. 

(ii) The Manager and its respective Indemnitees will have no duty (contractual or otherwise) to
communicate or present any corporate opportunities 

 
to Parent, the Company or any of their respective affiliates or to refrain from any actions specified in Section 5(b)(i) hereof, and Parent and the Company, on their own behalf and on behalf
of their respective affiliates, each hereby renounces and waives any right to require the Manager or any of its Indemnitees to act in a manner inconsistent with the provisions of this Section 5(b). 

(iii) The Manager and its Indemnitees will not be liable to Parent, the Company or any of their respective
affiliates for breach of any duty (contractual or otherwise) by reason of any activities or omissions of the types referred to in this Section 5(b) or of any such Person’s participation therein. 

(c) Limitation of Liability. In no event will the Manager or any of its Indemnitees be
liable to Parent, the Company or any of their respective affiliates for any indirect, special, punitive, incidental, exemplory or consequential damages, including, without limitation, lost profits or savings, whether or not such damages are
foreseeable, or for any third party claims (whether based in contract, tort or otherwise), relating to the Services to be provided by the Manager hereunder. Additionally, in no event shall the aggregate liability of the Manager and all of its
Indemnitees with respect to this Agreement or any Services provided hereunder exceed the fees received by the Manager pursuant to Section 2 of this Agreement. 

6. Assignment, etc. Except as provided below, no party hereto has the right to assign this Agreement without the
prior written consent of each of the other parties. Notwithstanding the foregoing, (a) the Manager may assign all or part of its rights and obligations hereunder to any affiliate of the Manager that provides services similar to those called for
by this Agreement, in which event the Manager will be released of all of its rights and obligations hereunder and (b) the provisions hereof for the benefit of Indemnitees (other than the Manager itself) or Affiliate Indemnitors shall also inure
to the benefit of such other Indemnitees, Affiliate Indemnitors and their respective successors and assigns. 

7. Amendments and Waivers. No amendment or waiver of any term, provision or condition of this Agreement will be
effective, unless in writing and executed by the Manager and Acquisition Sub (or their respective successors); provided, that the Manager may individually agree to waive or reduce any fee to which it is entitled pursuant to this Agreement,
and, unless otherwise directed by the Manager, such waived portion shall revert to the Company. No waiver on any one occasion will extend to or effect or be construed as a waiver of any right or remedy on any future occasion. No course of dealing of
any Person nor any delay or omission in exercising any right or remedy will constitute an amendment of this Agreement or a waiver of any right or remedy of any party hereto. 

8. Governing Law; Jurisdiction. 

(a) Choice of Law. This Agreement and any controversy arising out of or relating to this Agreement
shall be governed by and construed in accordance with the General Corporation Law of the State of Delaware as to matters within the scope thereof, and as to all other matters shall be governed by and construed in accordance with the internal laws of
the State of New York. 

 (b) Consent to Jurisdiction. Each of the parties
hereto agrees that all actions, suits or proceedings arising out of, based upon or relating to this Agreement or the subject matter hereof will be brought and maintained exclusively in the federal and state courts of the State of New York, City of
New York, County of New York. Each of the parties hereto by execution hereof (i) hereby irrevocably submits to the jurisdiction of the federal and state courts in the State of New York, City of New York, County of New York for the purpose of
any action, suit or proceeding arising out of or based upon this Agreement or the subject matter hereof and (ii) hereby waives to the extent not prohibited by applicable law, and agrees not to assert, by way of motion, as a defense or
otherwise, in any such action, suit or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that it is immune from extraterritorial injunctive relief or other injunctive relief, that its property is
exempt or immune from attachment or execution, that any such action, suit or proceeding may not be brought or maintained in one of the above-named courts, that any such action, suit or proceeding brought or maintained in one of the above-named
courts should be dismissed on grounds of forum non conveniens, should be transferred to any court other than one of the above-named courts, should be stayed by virtue of the pendency of any other action, suit or proceeding in
any court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by any of the above-named courts. Notwithstanding the foregoing, to the extent that any party hereto is or becomes a
party in any litigation in connection with which it may assert indemnification rights set forth in this Agreement, the court in which such litigation is being heard will be deemed to be included in clause (i) above. Each of the parties hereto
hereby consents to service of process in any such suit, action or proceeding in any manner permitted by the laws of the State of New York, agrees that service of process by registered or certified mail, return receipt requested, at the address
specified in or pursuant to Section 10 hereof is reasonably calculated to give actual notice and waives and agrees not to assert by way of motion, as a defense or otherwise, in any such action, suit or proceeding any claim that service of
process made in accordance with Section 10 hereof does not constitute good and sufficient service of process. The provisions of this Section 8 will not restrict the ability of any party to enforce in any court any judgment obtained in a
court included in clause (i) above. 
 (c) Waiver of Jury Trial. TO
THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED,
EACH OF THE PARTIES HERETO HEREBY WAIVES, AND COVENANTS THAT IT WILL
NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT, OR OTHERWISE), ANY RIGHT TO
TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM,
DEMAND, CAUSE OF ACTION, ACTION, SUIT OR PROCEEDING ARISING OUT OF,
BASED UPON OR RELATING TO THIS AGREEMENT OR THE SUBJECT MATTER
HEREOF, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND
WHETHER IN CONTRACT OR TORT OR OTHERWISE. EACH OF THE PARTIES HERETO
ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY EACH OTHER PARTY THAT THE
PROVISIONS OF THIS SECTION 8(C) CONSTITUTE A MATERIAL INDUCEMENT UPON WHICH
SUCH PARTY IS RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT
AND THE TRANSACTIONS CONTEMPLATED HEREBY. ANY OF THE PARTIES HERETO MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH OF THE PARTIES
HERETO TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 

 9. Entire Agreement, Etc. This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof and supersedes any prior communication or agreement with respect thereto. Parent and each of its subsidiaries party shall be jointly and severally liable for all obligations of
the Company or any other of its subsidiaries hereunder. 
 10. Notice. All notices, demands, and
communications required or permitted under this Agreement will be in writing and will be effective if served upon such other party and such other party’s copied persons as specified below to the address set forth for it below (or to such other
address as such party will have specified by notice to each other party) if (i) delivered personally, (ii) sent and received by facsimile or (iii) sent by certified or registered mail or by Federal Express, DHL, UPS or any other
comparably reputable overnight courier service, postage prepaid, to the appropriate address as follows: 
 If to
the Company, to it at: 
 c/o The Gymboree Corporation 

500 Howard Street 
 San Francisco, CA 94105 

			
	 Attention:
	 	 General Counsel

	 Facsimile:
	 	 (415) 278-7562

 with copies to: 

Bain Capital Partners, LLC 
 John Hancock Tower 
 200 Clarendon Street 

Boston, MA 02116 

			
	 Facsimile:
	 	 (617) 516-2010

	 Attention:
	 	 General Counsel

 Ropes & Gray LLP 

The Prudential Tower 
 800 Boylston Street 
 Boston, Massachusetts 02119 

			
	 Facsimile:
	 	 (617) 951-7050

	 Attention:
	 	 R. Newcomb Stillwell

		 	Howard S. Glazer

 Unless otherwise specified herein, such notices or other communications will be deemed
effective, (a) on the date received, if personally delivered or sent by facsimile during normal business hours, (b) on the business day after being received if sent by facsimile other than during normal business hours, (c) one
business day after being sent by Federal Express, DHL or UPS or other comparably reputable delivery service and (d) five business days after being sent by registered or certified mail. Each of the parties hereto shall be entitled to specify a
different address by giving notice as aforesaid to each of the other parties hereto. 

 11. Severability. If in any judicial or arbitral proceedings a court
or arbitrator refuses to enforce any provision of this Agreement, then such unenforceable provision will be deemed eliminated from this Agreement for the purpose of such proceedings to the extent necessary to permit the remaining provisions to be
enforced, and the parties hereto shall negotiate in good faith to seek to enter into substitute provisions incorporating, as nearly as possible, the purpose, intent and effect of such unenforceable provision. To the full extent, however, that the
provisions of any applicable law may be waived, they are hereby waived to the end that this Agreement be deemed to be a valid and binding agreement enforceable in accordance with its terms, and in the event that any provision hereof is found to be
invalid or unenforceable, such provision will be construed by limiting it so as to be valid and enforceable to the maximum extent consistent with and possible under applicable law. 

12. Miscellaneous 

(a) Counterparts. This Agreement may be executed in any number of counterparts and by each of the
parties hereto in separate counterparts, each of which when so executed will be deemed to be an original and all of which together will constitute one and the same agreement. 

(b) Interpretation. The headings contained in this Agreement are for convenience of reference only
and will not in any way affect the meaning or interpretation hereof. As used herein the word “including” shall be deemed to mean “including without limitation”. This Agreement reflects the mutual intent of the parties and no rule
of construction against the drafting party shall apply. 
 (c) No Third Party
Beneficiaries. The terms and provisions of this Agreement are intended solely for the benefit of each party hereto and their respective successors and permitted assigns, and it is not the intention of the parties to confer, and, except for
Indemnitees and Affiliate Indemnitors, each as defined in Section 4 hereof (but subject to the rights of the Manager to exercise the rights of the same), no provision hereof shall confer third party beneficiary rights upon any other Person.

 [The remainder of this page is intentionally left blank. Signatures immediately follow.] 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to
be executed on its behalf as an instrument under seal as of the date first above written by its officer or representative thereunto duly authorized. 
  

							
	 COMPANY:
	 		 	THE GYMBOREE CORPORATION
			
		 		 	  

		 		 	 Name:
	 	 Matthew K. McCauley

		 		 	 Title:
	 	 Chief Executive Officer

			
	 PARENT:
	 		 	GIRAFFE HOLDING, INC.
			
		 		 	  

		 		 	 Name:
	 	 Jordan Hitch

		 		 	 Title:
	 	 Secretary & Vice President

			
	 MANAGER:
	 		 	BAIN CAPITAL PARTNERS, LLC
				
		 		 	 By:
	 	  

		 		 	 Name:
	 	 Jordan Hitch

		 		 	 Title:
	 	 Authorized Signatory

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