Document:

exv4wxey

 

Exhibit 4(e)

 

 

PPL ELECTRIC UTILITIES CORPORATION

(formerly PP&L, Inc. and Pennsylvania Power & Light Company)

TO

DEUTSCHE BANK TRUST COMPANY AMERICAS

(formerly Bankers Trust Company,

successor to Morgan Guaranty Trust Company of New York,

formerly Guaranty Trust Company of New York)

As Trustee under PPL Electric Utilities Corporation’s

Mortgage and Deed of Trust,

Dated as of October 1, 1945

 

Seventy-sixth Supplemental Indenture

Providing among other things for

First Mortgage Bonds, 6.45% Collateral Series due 2037

 

Dated as of August 1, 2007

 

 

 

 

Seventy-sixth Supplemental Indenture

     SEVENTY-SIXTH  SUPPLEMENTAL INDENTURE, dated as of the lst
day of August, 2007 made and entered into by and between PPL ELECTRIC UTILITIES CORPORATION
(formerly PP&L, Inc. and Pennsylvania Power & Light Company), a corporation of the Commonwealth of
Pennsylvania, whose address is Two North Ninth Street, Allentown, Pennsylvania 18101 (hereinafter
sometimes called the Company), and DEUTSCHE BANK TRUST COMPANY AMERICAS (formerly Bankers Trust
Company), a corporation of the State of New York, whose address is 60 Wall Street, New York, New
York 10005 (hereinafter sometimes called the Trustee), as Trustee under the Mortgage and Deed of
Trust, dated as of October 1, 1945 (hereinafter called the Mortgage and, together with any
indentures supplemental thereto, hereinafter called the Indenture), which Mortgage was executed and
delivered by Pennsylvania Power & Light Company to secure the payment of bonds issued or to be
issued under and in accordance with the provisions of the Mortgage, reference to which said
Mortgage is hereby made, this instrument (hereinafter called the Seventy-sixth Supplemental
Indenture) being supplemental thereto.

     WHEREAS, said Mortgage was or is to be recorded in various Counties in the Commonwealth of
Pennsylvania, which Counties include or will include all Counties in which this Seventy-sixth
Supplemental Indenture is to be recorded; and

     WHEREAS, by amendment to its Articles of Incorporation filed in the Office of the Secretary of
State of Pennsylvania on September 12, 1997, the Company changed its name to PP&L, Inc.; and

     WHEREAS, by an amendment to its Articles of Incorporation filed with the Office of the
Secretary of State of Pennsylvania on February 14, 2001, the Company changed its name to PPL
Electric Utilities Corporation; and

     WHEREAS, an instrument, dated August 5, 1994, was executed by the Company appointing Bankers
Trust Company as Trustee in succession to said Morgan Guaranty Trust Company of New York (resigned)
under the Indenture, and by Bankers Trust Company accepting said appointment, which instrument was
or is to be recorded in various Counties in the Commonwealth of Pennsylvania; and

     WHEREAS, by an amendment to its Articles of Incorporation filed in the office of the Secretary
of State of New York, effective April 15, 2002, the Trustee changed its name to Deutsche Bank Trust
Company Americas; and

     WHEREAS, by the Mortgage the Company covenanted that it would execute and deliver such
supplemental indenture or indentures and such further instruments and do such further acts as might
be necessary or proper to carry out more effectually the purposes of the Indenture and to make
subject to the lien of the Indenture any property thereafter acquired and intended to be subject to
the lien thereof; and

     WHEREAS, the Company executed and delivered as supplements to the Mortgage, the following
supplemental indentures:

	 	 	 
	Designation	 	Dated as of
	First Supplemental Indenture

	 	July 1, 1947
	Second Supplemental Indenture

	 	December 1, 1948
	Third Supplemental Indenture

	 	February 1, 1950
	Fourth Supplemental Indenture

	 	March 1, 1953
	Fifth Supplemental Indenture

	 	August 1, 1955
	Sixth Supplemental Indenture

	 	December 1, 1961
	Seventh Supplemental Indenture

	 	March 1, 1964
	Eighth Supplemental Indenture

	 	June 1, 1966
	Ninth Supplemental Indenture

	 	November 1, 1967
	Tenth Supplemental Indenture

	 	December 1, 1967
	Eleventh Supplemental Indenture

	 	January 1, 1969
	Twelfth Supplemental Indenture

	 	June 1, 1969

2

 

	 	 	 
	Designation	 	Dated as of
	Thirteenth Supplemental Indenture

	 	March 1, 1970
	Fourteenth Supplemental Indenture

	 	February 1, 1971
	Fifteenth Supplemental Indenture

	 	February 1, 1972
	Sixteenth Supplemental Indenture

	 	January 1, 1973
	Seventeenth Supplemental Indenture

	 	May 1, 1973
	Eighteenth Supplemental Indenture

	 	April 1, 1974
	Nineteenth Supplemental Indenture

	 	October 1, 1974
	Twentieth Supplemental Indenture

	 	May 1, 1975
	Twenty-first Supplemental Indenture

	 	November 1, 1975
	Twenty-second Supplemental Indenture

	 	December 1, 1976
	Twenty-third Supplemental Indenture

	 	December 1, 1977
	Twenty-fourth Supplemental Indenture

	 	April 1, 1979
	Twenty-fifth Supplemental Indenture

	 	April 1, 1980
	Twenty-sixth Supplemental Indenture

	 	June 1, 1980
	Twenty-seventh Supplemental Indenture

	 	June 1, 1980
	Twenty-eighth Supplemental Indenture

	 	December 1, 1980
	Twenty-ninth Supplemental Indenture

	 	February 1, 1981
	Thirtieth Supplemental Indenture

	 	February 1, 1981
	Thirty-first Supplemental Indenture

	 	September 1, 1981
	Thirty-second Supplemental Indenture

	 	April 1, 1982
	Thirty-third Supplemental Indenture

	 	August 1, 1982
	Thirty-fourth Supplemental Indenture

	 	October 1, 1982
	Thirty-fifth Supplemental Indenture

	 	November 1, 1982
	Thirty-sixth Supplemental Indenture

	 	February 1, 1983
	Thirty-seventh Supplemental Indenture

	 	November 1, 1983
	Thirty-eighth Supplemental Indenture

	 	March 1, 1984
	Thirty-ninth Supplemental Indenture

	 	April 1, 1984
	Fortieth Supplemental Indenture

	 	August 15, 1984
	Forty-first Supplemental Indenture

	 	December 1, 1984
	Forty-second Supplemental Indenture

	 	June 15, 1985
	Forty-third Supplemental Indenture

	 	October 1, 1985
	Forty-fourth Supplemental Indenture

	 	January 1, 1986
	Forty-fifth Supplemental Indenture

	 	February 1, 1986
	Forty-sixth Supplemental Indenture

	 	April 1, 1986
	Forty-seventh Supplemental Indenture

	 	October 1, 1986
	Forty-eighth Supplemental Indenture

	 	March 1, 1988
	Forty-ninth Supplemental Indenture

	 	June 1, 1988
	Fiftieth Supplemental Indenture

	 	January 1, 1989
	Fifty-first Supplemental Indenture

	 	October 1, 1989
	Fifty-second Supplemental Indenture

	 	July 1, 1991
	Fifty-third Supplemental Indenture

	 	May 1, 1992
	Fifty-fourth Supplemental Indenture

	 	November 1, 1992
	Fifty-fifth Supplemental Indenture

	 	February 1, 1993
	Fifty-sixth Supplemental Indenture

	 	April 1, 1993
	Fifty-seventh Supplemental Indenture

	 	June 1, 1993
	Fifty-eighth Supplemental Indenture

	 	October 1, 1993
	Fifty-ninth Supplemental Indenture

	 	February 15, 1994
	Sixtieth Supplemental Indenture

	 	March 1, 1994
	Sixty-first Supplemental Indenture

	 	March 15, 1994
	Sixty-second Supplemental Indenture

	 	September 1, 1994
	Sixty-third Supplemental Indenture

	 	October 1, 1994
	Sixty-fourth Supplemental Indenture

	 	August 1, 1995
	Sixty-fifth Supplemental Indenture

	 	April 1, 1997
	Sixty-sixth Supplemental Indenture

	 	May 1, 1998

3

 

	 	 	 
	Designation	 	Dated as of
	Sixty-seventh Supplemental Indenture

	 	June 1, 1999
	Sixty-eighth Supplemental Indenture

	 	August 1, 2001
	Sixty-ninth Supplemental Indenture

	 	January 1, 2002
	Seventieth Supplemental Indenture

	 	February 1, 2003
	Seventy-first Supplemental Indenture

	 	May 1, 2003
	Seventy-second Supplemental Indenture

	 	February 1, 2005
	Seventy-third Supplemental Indenture

	 	May 1, 2005
	Seventy-fourth Supplemental Indenture

	 	June 1, 2005
	Seventy-fifth Supplemental Indenture

	 	December 1, 2005

which supplemental indentures were or are to be recorded in various Counties in the Commonwealth of
Pennsylvania; and

     WHEREAS, the Company executed and delivered its Supplemental Indenture, dated July 1, 1954,
creating a security interest in certain personal property of the Company, pursuant to the
provisions of the Pennsylvania Uniform Commercial Code, as a supplement to the Mortgage, which
Supplemental Indenture was filed in the Office of the Secretary of the Commonwealth of Pennsylvania
on July 1, 1954, and all subsequent supplemental indentures were so filed; and

     WHEREAS, in addition to the property described in the Mortgage, as heretofore supplemented,
the Company has acquired certain other property, rights and interests in property; and

     WHEREAS, the Company has heretofore issued, in accordance with the provisions of the Mortgage,
as supplemented, the following series of First Mortgage Bonds:

	 	 	 	 	 	 	 
	 	 	Principal	 	Principal
	 	 	Amount	 	Amount
	Series	 	Issued	 	Outstanding
	3% Series due 1975
	 	$	93,000,000	 	 	None
	2-3/4% Series due 1977
	 	 	20,000,000	 	 	None
	3-1/4% Series due 1978
	 	 	10,000,000	 	 	None
	2-3/4% Series due 1980
	 	 	37,000,000	 	 	None
	3-1/2% Series due 1983
	 	 	25,000,000	 	 	None
	3-3/8% Series due 1985
	 	 	25,000,000	 	 	None
	4-5/8% Series due 1991
	 	 	30,000,000	 	 	None
	4-5/8% Series due 1994
	 	 	30,000,000	 	 	None
	5-5/8% Series due 1996
	 	 	30,000,000	 	 	None
	6-3/4% Series due 1997
	 	 	30,000,000	 	 	None
	6-1/2% Series due 1972
	 	 	15,000,000	 	 	None
	7% Series due 1999
	 	 	40,000,000	 	 	None
	8-1/8% Series due June 1, 1999
	 	 	40,000,000	 	 	None
	9% Series due 2000
	 	 	50,000,000	 	 	None
	7-1/4% Series due 2001
	 	 	60,000,000	 	 	None
	7-5/8% Series due 2002
	 	 	75,000,000	 	 	None
	7-1/2% Series due 2003
	 	 	80,000,000	 	 	None
	Pollution Control Series A
	 	 	28,000,000	 	 	None
	9-1/4% Series due 2004
	 	 	80,000,000	 	 	None
	10-1/8% Series due 1982
	 	 	100,000,000	 	 	None
	9-3/4% Series due 2005
	 	 	125,000,000	 	 	None
	9-3/4% Series due November 1, 2005
	 	 	100,000,000	 	 	None

4

 

	 	 	 	 	 	 	 
	 	 	Principal	 	Principal
	 	 	Amount	 	Amount
	Series	 	Issued	 	Outstanding
	8-1/4% Series due 2006
	 	 	150,000,000	 	 	None
	8-1/2% Series due 2007
	 	 	100,000,000	 	 	None
	9-7/8% Series due 1983-1985
	 	 	100,000,000	 	 	None
	15-5/8% Series due 2010
	 	 	100,000,000	 	 	None
	11-3/4% Series due 1984
	 	 	30,000,000	 	 	None
	Pollution Control Series B
	 	 	70,000,000	 	 	None
	Pollution Control Series C
	 	 	20,000,000	 	 	None
	14% Series due December 1, 1990
	 	 	125,000,000	 	 	None
	15% Series due 1984-1986
	 	 	50,000,000	 	 	None
	14-3/4% Series A due 1986
	 	 	30,000,000	 	 	None
	14-3/4% Series B due 1986
	 	 	20,000,000	 	 	None
	16-1/2% Series due 1987-1991
	 	$	52,000,000	 	 	None
	16-1/8% Series due 1992
	 	 	100,000,000	 	 	None
	16-1/2% Series due 1986-1990
	 	 	92,500,000	 	 	None
	13-1/4% Series due 2012
	 	 	100,000,000	 	 	None
	Pollution Control Series D
	 	 	70,000,000	 	 	None
	12-1/8% Series due 1989-1993
	 	 	50,000,000	 	 	None
	13-1/8% Series due 2013
	 	 	125,000,000	 	 	None
	Pollution Control Series E
	 	 	37,750,000	 	 	None
	13-1/2% Series due 1994
	 	 	125,000,000	 	 	None
	Pollution Control Series F
	 	 	115,500,000	 	 	None
	12-3/4% Series due 2014
	 	 	125,000,000	 	 	None
	Pollution Control Series G
	 	 	55,000,000	 	 	None
	12% Series due 2015
	 	 	125,000,000	 	 	None
	10-7/8% Series due 2016
	 	 	125,000,000	 	 	None
	9-5/8% Series due 1996
	 	 	125,000,000	 	 	None
	9% Series due 2016
	 	 	125,000,000	 	 	None
	9-1/2% Series due 2016
	 	 	125,000,000	 	 	None
	9-1/4% Series due 1998
	 	 	125,000,000	 	 	None
	9-5/8% Series due 1998
	 	 	125,000,000	 	 	None
	10% Series due 2019
	 	 	125,000,000	 	 	None
	9-1/4% Series due 2019
	 	 	250,000,000	 	 	None
	9-3/8% Series due 2021
	 	 	150,000,000	 	 	None
	7-3/4% Series due 2002
	 	 	150,000,000	 	 	None
	8-1/2% Series due 2022
	 	 	150,000,000	 	 	None
	Pollution Control Series H
	 	 	90,000,000	 	 	None
	6-7/8% Series due 2003
	 	 	100,000,000	 	 	None
	7-7/8% Series due 2023
	 	 	200,000,000	 	 	None
	5-1/2% Series due 1998
	 	 	150,000,000	 	 	None
	6-1/2% Series due 2005
	 	 	125,000,000	 	 	None
	6% Series due 2000
	 	 	125,000,000	 	 	None
	6-3/4% Series due 2023
	 	 	150,000,000	 	 	None
	Pollution Control Series I
	 	 	53,250,000	 	 	None
	6.55% Series due 2006
	 	 	150,000,000	 	 	None
	7.30% Series due 2024
	 	 	150,000,000	 	 	None
	6-7/8% Series due 2004
	 	 	150,000,000	 	 	None
	7-3/8% Series due 2014
	 	 	100,000,000	 	 	10,290,000
	Pollution Control Series J
	 	 	115,500,000	 	 	None
	7.70% Series due 2009
	 	 	200,000,000	 	 	325,000
	Pollution Control Series K
	 	 	55,000,000	 	 	None
	Short-Term Series A
	 	 	800,000,000	 	 	None
	6 1/8% REset Put Securities Series due 2006
	 	 	200,000,000	 	 	None

5

 

	 	 	 	 	 	 	 
	 	 	Principal	 	Principal
	 	 	Amount	 	Amount
	Series	 	Issued	 	Outstanding
	Short-Term Series B
	 	 	600,000,000	 	 	None
	5-7/8% Series due August 15, 2007
	 	 	300,000,000	 	 	254,866,000
	6-1/4% Series due August 15, 2009
	 	 	500,000,000	 	 	485,785,000
	3.125% Pollution Control Series due 2008
	 	 	90,000,000	 	 	90,000,000
	4.30% Collateral Series due 2013
	 	 	100,000,000	 	 	100,000,000
	4.70% Pollution Control Series due 2029
	 	 	115,500,000	 	 	115,500,000
	4.75% Pollution Control Series due 2027
	 	 	108,250,000	 	 	108,250,000
	4.95% Collateral Series due 2015
	 	 	100,000,000	 	 	100,000,000
	5.15% Collateral Series due 2020
	 	 	100,000,000	 	 	100,000,000

which bonds are also sometimes called bonds of the First through Eighty-third Series, respectively;
and

     WHEREAS, Section 8 of the Mortgage provides that the form of each series of bonds (other than
the First Series) issued thereunder shall be established by Resolution of the Board of Directors of
the Company and that the form of such series, as established by said Board of Directors, shall
specify the descriptive title of the bonds and various other terms thereof, and may also contain
such provisions not inconsistent with the provisions of the Indenture as the Board of Directors
may, in its discretion, cause to be inserted therein expressing or referring to the terms and
conditions upon which such bonds are to be issued and/or secured under the Indenture; and

     WHEREAS, Section 120 of the Mortgage provides, among other things, that any power, privilege
or right expressly or impliedly reserved to or in any way conferred upon the Company by any
provision of the Indenture, whether such power, privilege or right is in any way restricted or is
unrestricted, may be in whole or in part waived or surrendered or subjected to any restriction if
at the time unrestricted or to additional restriction if already restricted, and the Company may
enter into any future covenants, limitations or restrictions for the benefit of any one or more
series of bonds issued thereunder, or the Company may cure any ambiguity contained therein or in
any supplemental indenture or may establish the terms and provisions of any series of bonds other
than said First Series, by an instrument in writing executed and acknowledged by the Company in
such manner as would be necessary to entitle a conveyance of real estate to record in all of the
States in which any property at the time subject to the lien of the Indenture shall be situated;
and

     WHEREAS, the Company now desires to create a new series of bonds and to add to its covenants
and agreements contained in the Mortgage, as heretofore supplemented, certain other covenants and
agreements to be observed by it and to alter and amend in certain respects the covenants and
provisions contained in the Mortgage; and

     WHEREAS, the execution and delivery by the Company of this Seventy-sixth Supplemental
Indenture, and the terms of the bonds of the Eighty-fourth Series, hereinafter referred to, have
been duly authorized by the Board of Directors of the Company by appropriate Resolutions of said
Board of Directors;

     NOW, THEREFORE, THIS INDENTURE WITNESSETH: That PPL Electric Utilities Corporation, in
consideration of the premises and of One Dollar to it duly paid by the Trustee at or before the
ensealing and delivery of these presents, the receipt whereof is hereby acknowledged, and in
further evidence of assurance of the estate, title and rights of the Trustee and in order further
to secure the payment both of the principal of and interest and premium, if any, on the bonds from
time to time issued under the Indenture, according to their tenor and effect and the performance of
all the provisions of the Indenture (including any modification made as in the Mortgage provided)
and of said bonds, hereby grants, bargains, sells, releases, conveys, assigns, transfers,
mortgages, pledges, sets over and confirms (subject, however, to Excepted Encumbrances as defined
in Section 6 of the Mortgage) unto Deutsche Bank Trust Company Americas, as Trustee under the
Indenture, and to its successor or successors in said trust, and to said Trustee and its successors
and assigns forever, all property, real, personal and mixed, of the kind or nature specifically
mentioned in the Mortgage, as heretofore supplemented, or of any other kind or nature, acquired by
the Company after the date of the execution and delivery of the Seventy-fifth Supplemental
Indenture (except any

6

 

herein or in the Mortgage, as heretofore supplemented, expressly excepted and except any which
may not lawfully be mortgaged or pledged under the Indenture), now owned or, subject to the
provisions of Section 87 of the Mortgage, hereafter acquired by the Company (by purchase,
consolidation, merger, donation, construction, erection or in any other way) and wheresoever
situated, including (without in anywise limiting or impairing by the enumeration of the same the
scope and intent of the foregoing) all lands, power sites, flowage rights, water rights, water
locations, water appropriations, ditches, flumes, reservoirs, reservoir sites, canals, raceways,
dams, dam sites, aqueducts, and all other rights or means for appropriating, conveying, storing and
supplying water; all rights of way and roads; all plants for the generation of electricity by
steam, water and/or other power; all power houses, gas plants, street lighting systems, standards
and other equipment incidental thereto, telephone, radio and television systems, air-conditioning
systems and equipment incidental thereto, water works, water systems, steam heat and hot water
plants, substations, lines, service and supply systems, bridges, culverts, tracks, ice or
refrigeration plants and equipment, offices, buildings and other structures and the equipment
thereof; all machinery, engines, boilers, dynamos, electric, gas and other machines, regulators,
meters, transformers, generators, motors, electrical, gas and mechanical appliances, conduits,
cables, water, steam heat, gas or other pipes, gas mains and pipes, service pipes, fittings, valves
and connections, pole and transmission lines, wires, cables, tools, implements, apparatus,
furniture and chattels; all municipal and other franchises, consents or permits; all lines for the
transmission and distribution of electric current, gas, steam heat or water for any purpose
including towers, poles, wires, cables, pipes, conduits, ducts and all apparatus for use in
connection therewith; all real estate, lands, easements, servitudes, licenses, permits, franchises,
privileges, rights of way and other rights in or relating to real estate or the occupancy of the
same and (except as herein or in the Mortgage, as heretofore supplemented, expressly excepted) all
the right, title and interest of the Company in and to all other property of any kind or nature
appertaining to and/or used and/or occupied and/or enjoyed in connection with any property
hereinbefore or in the Mortgage, as heretofore supplemented, described;

     TOGETHER with all and singular the tenements, hereditaments, prescriptions, servitudes, and
appurtenances belonging or in anywise appertaining to the aforesaid property or any part thereof,
with the reversion and reversions, remainder and remainders and (subject to the provisions of
Section 57 of the Mortgage) the tolls, rents, revenues, issues, earnings, income, product and
profits thereof, and all the estate, right, title and interest and claim whatsoever, at law as well
as in equity, which the Company now has or may hereafter acquire in and to the aforesaid property
and franchises and every part and parcel thereof;

     IT IS HEREBY AGREED by the Company that, subject to the provisions of Section 87 of the
Mortgage and to the extent permitted by law, all the property, rights, and franchises acquired by
the Company (by purchase, consolidation, merger, donation, construction, erection or in any other
way) after the date hereof, except any herein or in the Mortgage, as heretofore supplemented,
expressly excepted, shall be and are as fully granted and conveyed hereby and as fully embraced
within the lien hereof and the lien of the Indenture, as if such property, rights and franchises
were now owned by the Company and were specifically described herein and conveyed hereby; and

     IT IS HEREBY DECLARED by the Company that all the property, rights and franchises now owned or
hereafter acquired by the Company have been, or are, or will be owned or acquired with the
intention to use the same in carrying on the business or branches of business of the Company, and
it is hereby declared that it is the intention of the Company that all thereof, except any herein
or in the Mortgage, as heretofore supplemented, expressly excepted, shall (subject to the
provisions of Section 87 of the Mortgage and to the extent permitted by law) be embraced within the
lien of this Seventy-sixth Supplemental Indenture and the lien of the Indenture;

     PROVIDED that the following are not and are not intended to be now or hereafter granted,
bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over or
confirmed hereunder and are hereby expressly excepted from the lien and operation of this
Seventy-sixth Supplemental Indenture and from the lien and operation of the Indenture, viz:
(1) cash, shares of stock, bonds, notes and other obligations and other securities not hereafter
specifically pledged, paid, deposited, delivered or held under the Indenture or covenanted so to
be; (2) goods, wares, merchandise, equipment, apparatus, materials, or supplies held for the
purpose of sale or other disposition in the usual course of business; fuel, oil and similar
materials and supplies consumable in the operation of any of the properties of the Company;
construction equipment acquired for temporary use; all aircraft, rolling stock, trolley coaches,
buses, motor coaches, automobiles and other vehicles and materials and supplies held for the
purposes of repairing or replacing (in whole or part) any of the same; all timber, minerals,
mineral rights and royalties; (3) bills, notes and accounts receivable, judgments, demands and
choses in action, and all contracts, leases

7

 

and operating agreements not specifically pledged under the Indenture or covenanted so to be;
the Company’s contractual rights or other interest in or with respect to tires not owned by the
Company; (4) the last day of the term of any lease or leasehold which may be or become subject to
the lien of the Indenture; (5) electric energy, gas, steam, ice, and other materials or products
generated, manufactured, produced or purchased by the Company for sale, distribution or use in the
ordinary course of its business and (6) any property released from the lien of the Mortgage
pursuant to Sections 58, 59, 60, 62 or 63 of the Mortgage; provided, however, that the property and
rights expressly excepted from the lien and operation of the Indenture in the above subdivisions
(2) and (3) shall (to the extent permitted by law) cease to be so excepted in the event and as of
the date that the Trustee or a receiver or trustee shall enter upon and take possession of the
Mortgaged and Pledged Property in the manner provided in Article XIII of the Mortgage by reason of
the occurrence of a Default as defined in Section 65 thereof, as supplemented by the provisions of
this Seventy-sixth Supplemental Indenture;

     TO HAVE AND TO HOLD all such properties, real, personal and mixed, granted, bargained, sold,
released, conveyed, assigned, transferred, mortgaged, pledged, set over or confirmed by the Company
as aforesaid, or intended so to be, unto Deutsche Bank Trust Company Americas, as Trustee, and its
successors and assigns forever;

     IN TRUST NEVERTHELESS for the same purposes and upon the same terms, trusts and conditions and
subject to and with the same provisos and covenants as are set forth in the Mortgage, as heretofore
supplemented, this Seventy-sixth Supplemental Indenture being supplemental to the Mortgage;

     AND IT IS HEREBY COVENANTED by the Company that all the terms, conditions, provisos, covenants
and provisions contained in the Mortgage, as heretofore supplemented, shall affect and apply to the
property hereinbefore described and conveyed and to the estate, rights, obligations and duties of
the Company and the Trustee and the beneficiaries of the trust with respect to said property, and
to the Trustee and its successors as Trustee of said property in the same manner and with the same
effect as if the said property had been owned by the Company at the time of the execution of the
Mortgage, and had been specifically and at length described in and conveyed to the Trustee by the
Mortgage as a part of the property therein stated to be conveyed.

     The Company further covenants and agrees to and with the Trustee and its successors in said
trust under the Indenture, as follows:

ARTICLE I.

Eighty-fourth Series of Bonds

     SECTION 1. There shall be a series of bonds designated “First Mortgage Bonds, 6.45% Collateral
Series due 2037” (herein sometimes referred to as the “Eighty-fourth Series”), each of which shall
also bear the descriptive title First Mortgage Bonds, and the form thereof, which shall be
established by Resolution of the Board of Directors of the Company, shall contain suitable
provisions with respect to the matters hereinafter in this Section specified. Bonds of the
Eighty-fourth Series shall be limited to $250 million in aggregate principal amount, except as
provided in Section 16 of the Mortgage, and shall be issued as fully registered bonds in
denominations of One Thousand Dollars and in any multiple or multiples of One Thousand Dollars;
each bond of the Eighty-fourth Series shall mature on August 15, 2037, shall bear interest at the
rate of 6.45% per annum, payable semi-annually on February 15 and August 15 of each year,
commencing February 15, 2008; the principal of and interest on each said bond to be payable at the
office or agency of the Company in the Borough of Manhattan, The City of New York, and interest on
each said bond to be also payable at the office of the Company in the City of Allentown,
Pennsylvania, in such coin or currency of the United States of America as at the time of payment is
legal tender for public and private debts. Bonds of the Eighty-fourth Series shall be dated as in
Section 10 of the Mortgage provided.

     The bonds of the Eighty-fourth Series shall be issued by the Company, registered in the name
of and delivered to The Bank of New York (as successor to JPMorgan Chase Bank, N.A.) as trustee
(the “2001 Trustee”) under an Indenture dated as of August 1, 2001 (the “2001 Indenture”), to
provide for the payment when due (whether at maturity, by acceleration or otherwise) of the
principal and interest of the Securities (as defined in the 2001 Indenture) to be issued from time
to time under the 2001 Indenture.

8

 

     The bonds of the Eighty-fourth Series shall not be transferable by the 2001 Trustee, except to
a successor trustee under the 2001 Indenture. Bonds of the Eighty-fourth Series so transferable to
a successor trustee under the 2001 Indenture may be transferred at the principal office of the
Trustee in the Borough of Manhattan, The City of New York.

     Any payment by the Company under the 2001 Indenture of the principal of or premium, if any, or
interest, if any on the securities which shall been authenticated and delivered under the 2001
Indenture on the basis of the issuance and delivery to the 2001 Trustee of bonds of the
Eighty-fourth Series (other than by the application of the proceeds of a payment in respect of such
bonds) shall, to the extent hereof, be deemed to satisfy and discharge the obligation of the
Company, if any, to make a payment of principal of, or premium, or interest on such bonds, as the
case may be, which is then due.

     The Trustee may conclusively presume that the obligation of the Company to pay the principal
of or interest on the bonds of the Eighty-fourth Series as the same shall become due and payable
shall have been fully satisfied and discharged unless and until it shall have received a written
notice from the 2001 Trustee, signed by an authorized officer thereof, stating that the principal
of or interest on specified bonds of the Eighty-fourth Series has become due and payable and has
not been fully paid, and specifying the amount of funds required to make such payment.

     (I) Each holder of a bond of the Eighty-fourth Series consents that the bonds of the
Eighty-fourth Series may be redeemable at the option of the Company or pursuant to the requirements
of the Mortgage in whole at any time, or in part from time to time, prior to maturity, without
notice provided in Section 52 of the Mortgage, at the principal amount of the bonds to be redeemed,
in each case, together with accrued interest to the date fixed for redemption by the Company in a
notice delivered on or before the date fixed for redemption by the Company to the Trustee and to
the holders of the bonds to be redeemed.

     (II) The bonds of the Eighty-fourth Series shall also be redeemable, in whole at any time, or
in part from time to time, prior to maturity, at a redemption price equal to the principal amount
thereof, together with accrued and unpaid interest to the date of payment of such principal amount,
upon receipt by the Trustee of a written notice from the 2001 Trustee (i) delivered to the Trustee
and the Company, (ii) signed by its President or any Vice President, (iii) stating that an Event of
Default has occurred under the 2001 Indenture and is continuing and that, as a result, there then
is due and payable a specified amount with respect to the Securities Outstanding under the 2001
Indenture, for the payment of which the 2001 Trustee has not received funds, and (iv) specifying
the principal amount of the bonds of the Eighty-fourth Series to be redeemed. Delivery of such
notice shall constitute a waiver by the 2001 Trustee of notice of redemption under the Indenture.

     (III) At the option of the registered owner, any bonds of the Eighty-fourth Series, upon
surrender thereof, for cancellation, at the office or agency of the Company in the Borough of
Manhattan, The City of New York, shall be exchangeable for a like aggregate principal amount of
bonds of the same series, interest rate, maturity and other terms of other authorized
denominations.

     Subject to the provisions of the third paragraph of this Section 1, Bonds of the Eighty-fourth
Series shall be transferable, upon the surrender thereof for cancellation, together with a written
instrument of transfer in form approved by the registrar duly executed by the registered owner or
by his duly authorized attorney, at the office or agency of the Company in the Borough of
Manhattan, The City of New York; provided that such transfer shall not result in any security being
required to be registered under the Securities Act of 1933, as amended, and an opinion of counsel
satisfactory to the Company to such effect shall have been provided to the Company.

     The bonds of the Eighty-fourth Series shall not be redeemable by the application of cash
deposited with the Trustee pursuant to the provisions of Section 64.

     Upon any transfer or exchange of bonds of the Eighty-fourth Series, the Company may make a
charge therefor sufficient to reimburse it for any tax or taxes or other governmental charge, as
provided in Section 12 of the Mortgage, but the Company hereby waives any right to make a charge in
addition thereto for any exchange or transfer of bonds of the Eighty-fourth Series.

9

 

ARTICLE II.

Miscellaneous Provisions

     SECTION 2. The Company reserves the right to make such amendments to the Mortgage, as
supplemented, as shall be necessary in order to delete subsection (I) of Section 39 of the
Mortgage, and each holder of bonds of the Eighty-fourth Series hereby consents to such deletion
without any other or further action by any holder of bonds of the Eighty-fourth Series.

     SECTION 3. The terms defined in the Mortgage, as heretofore supplemented, shall, for all
purposes of this Seventy-sixth Supplemental Indenture, have the meanings specified in the Mortgage,
as heretofore supplemented.

     SECTION 4. Whenever in this Seventy-sixth Supplemental Indenture either of the parties hereto
is named or referred to, this shall, subject to the provisions of Articles XVI and XVII of the
Mortgage, be deemed to include the successors and assigns of such party, and all the covenants and
agreements in this Seventy-sixth Supplemental Indenture contained by or on behalf of the Company,
or by or on behalf of the Trustee shall, subject as aforesaid, bind and inure to the respective
benefits of the respective successors and assigns of such parties, whether so expressed or not.

     SECTION 5. So long as any bonds of the Eighty-fourth Series and remain Outstanding, unless
this provision shall have been waived in writing by the holders of a majority in aggregate
principal amount of bonds of the Eighty-fourth Series Outstanding at the time of such consent,
subdivision (c) of Section 65 of the Mortgage shall read as follows:

     “(c) Failure to pay interest or premium, if any, upon or principal (whether at
maturity as therein expressed or by declaration, or otherwise) of any Outstanding
Qualified Lien Bonds or of any outstanding indebtedness secured by any mortgage or
other lien (not included in the term Excepted Encumbrances) prior to the lien of
this Indenture, existing upon any property of the Company which is subject to the
lien and operation of this Indenture continued beyond the period of grace, if any,
specified in such mortgage or Qualified Lien or other lien securing the same;”

     SECTION 6. A breach of a specified covenant or agreement of the Company contained in this
Seventy-sixth Supplemental Indenture shall become a Default under the Indenture upon the happening
of the events provided in Section 65(g) of the Mortgage with respect to such a covenant or
agreement.

     SECTION 7. The Trustee hereby accepts the trusts herein declared, provided, created or
supplemented and agrees to perform the same upon the terms and conditions herein and in the
Mortgage, as heretofore supplemented, set forth and upon the following terms and conditions:

     The Trustee shall not be responsible in any manner whatsoever for or in respect of the
validity or sufficiency of this Seventy-sixth Supplemental Indenture or for or in respect of the
recitals contained herein, all of which recitals are made by the Company solely. Each and every
term and condition contained in Article XVII of the Mortgage, as heretofore amended by said First
through Seventy-fifth Supplemental Indentures, shall apply to and form part of this Seventy-sixth
Supplemental Indenture with the same force and effect as if the same were herein set forth in full
with such omissions, variations and insertions, if any, as may be appropriate to make the same
conform to the provisions of this Seventy-sixth Supplemental Indenture.

     SECTION 8. Nothing in this Seventy-sixth Supplemental Indenture, expressed or implied, is
intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation,
other than the parties hereto and the holders of the bonds and coupons Outstanding under the
Indenture, any right, remedy or claim under or by reason of this Seventy-sixth Supplemental
Indenture or by any covenant, condition, stipulation, promise or agreement hereof, and all the
covenants, conditions, stipulations, promises and agreements in this Seventy-sixth Supplemental
Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of
the parties hereto, and of the holders of the bonds and coupons Outstanding under the Indenture.

10

 

     SECTION 9. This Seventy-sixth Supplemental Indenture shall be executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.

     PPL ELECTRIC UTILITIES CORPORATION does hereby constitute and appoint James E. Abel, Treasurer
of PPL ELECTRIC UTILITIES CORPORATION, to be its attorney for it, and in its name and as and for
its corporate act and deed to acknowledge this Seventy-sixth Supplemental Indenture before any
person having authority by the laws of the Commonwealth of Pennsylvania to take such
acknowledgment, to the intent that the same may be duly recorded, and DEUTSCHE BANK TRUST COMPANY
AMERICAS does hereby constitute and appoint Susan Johnson, a Vice President of DEUTSCHE BANK TRUST
COMPANY AMERICAS, to be its attorney for it, and in its name and as and for its corporate act and
deed to acknowledge this Seventy-sixth Supplemental Indenture before any person having authority by
the laws of the Commonwealth of Pennsylvania to take such acknowledgment, to the intent that the
same may be duly recorded.

11

 

     IN WITNESS WHEREOF, PPL ELECTRIC UTILITIES CORPORATION has caused its corporate name to be
hereunto affixed, and this instrument to be signed and sealed by its President, one of its Vice
Presidents or its Treasurer, and its corporate seal to be attested by its Secretary or one of its
Assistant Secretaries for and in its behalf, in the City of Allentown, Pennsylvania, and DEUTSCHE
BANK TRUST COMPANY AMERICAS has caused its corporate name to be hereunto affixed, and this
instrument to be signed and sealed by one of its Principals, Vice Presidents, Trust Officers or
Associates, and its corporate seal to be attested by one of its Vice Presidents, Assistant Vice
Presidents, Trust Officers or Associates, in The City of New York, as of the day and year first
above written.

	 	 	 	 	 
	 	PPL ELECTRIC UTILITIES CORPORATION

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

	 	 	 
	Attest:

	 	 
	 
	 	 
	Diane M. Koch
	 	 
	Name: Diane M. Koch
	 	 
	Title: Assistant Secretary
	 	 

12

 

	 	 	 	 	 
	 

	DEUTSCHE BANK TRUST COMPANY AMERICAS,

As Trustee	 	 
	 
	 	 	 	 
	 

	By: Deutsche Bank National Trust Company	 	 

	 	 	 	 	 
	 	 	 
	 	                       /s/ Cynthia J. Powell
 	 
	 	Name:  	Cynthia J. Powell 	 
	 	Title:  	Vice President 	 
	 
	 	 	 
	 	                                     /s/ David Contino
 	 
	 	Name:  	David Contino 	 
	 	Title:  	Assistant Vice President 	 

13

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	COMMONWEALTH OF PENNSYLVANIA

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF LEHIGH

	 	 	)	 	 	 

     On this 13th day of August, 2007, before me, a notary public, the undersigned, personally
appeared James E. Abel, who acknowledged himself to be Treasurer of PPL ELECTRIC UTILITIES
CORPORATION, a corporation of the Commonwealth of Pennsylvania and that he, as such Treasurer,
being authorized to do so, executed the foregoing instrument for the purposes therein contained, by
signing the name of the corporation by himself as Treasurer.

          In witness whereof, I hereunto set my hand and official seal.

	 	 	 	 	 
	 	 	 
	 	     /s/  Diane M. Koch
 	 
	 	Notary Public 	 
	 	 	 

14

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	STATE OF NEW JERSEY

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF ESSEX

	 	 	)	 	 	 

     On this 13th day of August, 2007, before me, a notary public, the undersigned, personally
appeared Cynthia J. Powell and David Contino, who acknowledged themselves to be a Vice President
and an Assistant Vice President, respectively, of Deutsche Bank National Trust Company, acting on
behalf of DEUTSCHE BANK TRUST COMPANY AMERICAS, a corporation and that they, as such Vice President
and Assistant Vice President of Deutsche Bank National Trust Company, being authorized to do so,
executed the foregoing instrument for the purposes therein contained, by signing the name of the
corporation by themselves as a Vice President and an Assistant Vice President, respectively, of
Deutsche Bank National Trust Company.

          In witness whereof, I hereunto set my hand and official seal.

	 	 	 	 	 
	 	 	 
	 	     /s/ Michele H. Y. Voon
 	 
	 	Notary Public 	 
	 	 	 
	 

     Deutsche Bank Trust Company Americas hereby certifies that its precise name and address as
Trustee hereunder are:

DEUTSCHE BANK TRUST COMPANY AMERICAS

Global Debt Services

60 Wall Street, MS NYC60-2515

New York, New York 10005

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS

 	 
	 	By:  	DEUTSCHE BANK NATIONAL TRUST COMPANY,
 	 
	 	 	as Trustee 	 
	 	 	 	 
	 
	 	 	 
	 	                                              /s/ David Contino
 	 
	 	Name:  	 	 
	 	Title:  	 	 

15exv10w1

 

ORBIT/FR, INC.

1997 EQUITY INCENTIVE PLAN

as amended on March 13, 2007

1. Purpose

     The purpose of the Orbit/FR, Inc. 1997 Equity Incentive Plan (the “Plan”) is to promote the
long-term retention of key employees of Orbit/FR, Inc. (“Orbit”) and its current and future
subsidiaries (collectively, the “Company”) and other persons or entities who are in a position to
make significant contributions to the success of the Company, to further reward these employees and
other persons or entities for their contributions to the Company’s success, to provide additional
incentive to these employees and other persons or entities to continue to make similar
contributions in the future, and to further align the interests of these employees and other
persons or entities with those of Orbit’s stockholders. These purposes will be achieved by granting
to such employees and other persons and entities, in accordance with the provisions of this Plan,
Options, Stock Appreciation Rights, Restricted Stock or Unrestricted Stock Awards or Performance
Awards, for shares of Orbit’s common stock, no par value per share (“Common Stock”), or Loans or
Supplemental Grants, or combinations thereof (“Awards”).

2. Aggregate Number of Shares

     2.1 The aggregate number of shares of Common Stock for which Awards may be granted under
the Plan will be 1,200,000 shares. Notwithstanding the foregoing, if there is any change in the
capitalization of Orbit, such as by stock dividend, stock split, combination of shares, exchange of
securities, recapitalization or other event which the Board of Directors (the “Board”) of Orbit
deems, in its sole discretion, to be similar circumstances, the aggregate number and/or kind of
shares for which Awards may be granted under the Plan shall be appropriately adjusted in a manner
determined by the Board. No fractional shares of Common Stock will be delivered under the Plan.

     2.2 Treasury shares, reacquired shares and unissued shares of Common Stock may be used for
purposes of the Plan, at Orbit’s sole discretion.

     2.3 Shares of Common Stock that were issuable pursuant to an Award that has terminated but
with respect to which such Award had not been exercised, shares of Common Stock that are issued
pursuant to an Award but that are subsequently forfeited, and shares of Common Stock that were
issuable pursuant to an Award that was payable in Common Stock or cash but that was satisfied in
cash, shall be available for future Awards under the Plan.

3. Eligible Employees and Participants

     3.1 All current and future key employees of the Company, including officers and directors
who are employed by the Company (“Employees”), and all other persons or entities, including
directors of the Company who are not Employees, who in the opinion of the Board are in a

 

 

position to make a significant contribution to the success of the Company, shall be eligible to
receive Awards under the Plan (a “Participant”). No eligible Employee or such other person or
entity shall have any right to receive an Award except as expressly provided in the Plan.

     3.2 The Participants who shall actually receive Awards under the Plan shall be determined
by the Board in its sole discretion. In making such determinations, the Board shall consider the
positions and responsibilities of eligible Participants, their past performance and contributions
to the Company’s growth and expansion, the value of their services to the Company, the difficulty
of finding qualified replacements, and such other factors as the Board deems pertinent in its sole
discretion.

4. Administration

     4.1 The Plan shall be administered by the Board, unless the Board determines to delegate
such administration to a committee of the Board. If the Board makes such delegation, (i) the
Committee shall consist of at least two directors, (ii) each member of such committee shall be a
“non-employee director” within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934,
as amended (the “1934 Act”), and (iii) the provisions of the Plan relating to the Board shall apply
to such committee. In addition to its other authority and subject to the provisions of the Plan,
the Board shall have the authority to determine, in its sole discretion, the Participants who shall
be eligible to receive Awards, the Participants who shall actually receive Awards, the size of each
Award, including the number of shares of Common Stock subject to the Award, the type or types of
each Award, the date on which each Award shall be granted, the terms and conditions of each Award,
whether to waive compliance by a Participant with any obligations to be performed by the
Participant under an Award or waive any term or condition of an Award, whether to amend or cancel
an existing Award in whole or in part (except that the Board may not, without the consent of the
holder of an Award or unless specifically authorized by the terms of an Award, take any action
under this clause with respect to such Award if such action would adversely affect the rights of
such holder), and the form or forms of instruments that are required or deemed appropriate under
the Plan, including any written notices and elections required of Participants.

     4.2 The Board may adopt such rules for the administration of the Plan as it deems necessary
or advisable, in its sole discretion. For all purposes of the Plan, a majority of the members of
the Board shall constitute a quorum, and the vote or written consent of a majority of the members
of the Board on a particular matter shall constitute the act of the Board on that matter. The Board
shall have the exclusive right to construe the Plan and any Award, to settle all controversies
regarding the Plan or any Award, to correct defects and omissions in the Plan and in any Award, and
to take such further actions as the Board deems necessary or advisable, in its sole discretion, to
carry out the purpose and intent of the Plan. Such actions shall be final, binding and conclusive
upon all parties concerned.

     4.3 No member of the Board shall be liable for any act or omission (whether or not
negligent) taken or omitted in good faith, or for the good faith exercise of any authority or
discretion granted in the Plan to the Board, or for any act or omission of any other member of the
Board.

 

 

     4.4 All costs incurred in connection with the administration and operation of the Plan
shall be paid by the Company. Except for the express obligations of the Company under the Plan and
under Awards granted in accordance with the provisions of the Plan, the Company shall have no
liability with respect to any Award, or to any Participant or any transferee of shares of Common
Stock from any Participant, including, but not limited to, any tax liabilities, capital losses, or
other costs or losses incurred by any Participant or any such transferee.

5. Types of Awards

     5.1 Options.

          (a) An Option is an Award entitling the recipient on exercise thereof to purchase Common
Stock at a specified exercise price. Both “incentive stock options,” as defined in Section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”) (any Option intended to qualify as an
incentive stock option being hereinafter referred to as an “ISO”), and Options that are not
incentive stock options (“non-ISO”), may be granted under the Plan. ISOs shall be awarded only to
Employees.

          (b) The exercise price of an Option will be determined by the Board subject to the
following:

               (1) The exercise price of an ISO shall not be less than 100% (110% in the case of an ISO
granted to a ten percent shareholder) of the fair market value (as defined in Section 11.9) of the
Common Stock subject to the ISO, determined as of the time the ISO is granted. A “ten-percent
shareholder” is any person who at the time of grant owns, directly or indirectly, or is deemed to
own by reason of the attribution rules of Section 424(d) of the Code, stock possessing more than
10% of the total combined voting power of all classes of stock of Orbit or of any of its
subsidiaries.

               (2) The exercise price of a non-ISO shall not be less than 85% of the fair market value of
the Common Stock subject to the non-ISO, determined as of the time the non-ISO is granted, provided
that the discount from fair market value is in lieu of a reasonable amount of cash compensation,
and provided further that the exercise price of a non-ISO granted pursuant to a Performance Award
may be determined either as of the time the Performance Award is granted or as of the time the
non-ISO is granted pursuant to the Performance Award.

               (3) In no case may the exercise price paid for Common Stock which is part of an original
issue of authorized Common Stock be less than the par value per share of the Common Stock.

          (c) The period during which an Option may be exercised will be determined by the Board,
except that the period during which an ISO may be exercised will not exceed ten years five years,
in the case of an ISO granted to a ten-percent shareholder) from the day immediately preceding the
date the Option was granted.

 

 

          (d) An Option will become exercisable at such time or times, and on such terms and
conditions, as the Board may determine. The Board may at any time accelerate the time at which all
or any part of the Option may be exercised. Any exercise of an Option must be in writing, signed by
the proper person and delivered or mailed to the Company, accompanied by (1) any documents required
by the Board and (2) payment in full in accordance with Section 5.1(e)
below for the number of shares for which the Option is exercised.

          (e) Stock purchased on exercise of an Option must be paid for as follows: (1) in cash or by
check (acceptable to Orbit in accordance with guidelines established for this purpose), bank draft
or money order payable to the order of Orbit or (2) if so permitted by the instrument evidencing
the Option (or in the case of an Option which is not an ISO, by the Board at or after grant of the
Option), (i) through the delivery of shares of Common Stock which have been outstanding for at
least six months (unless the Board expressly approves a shorter period) and which have a fair
market value on the last business day preceding the date of exercise equal to the exercise price,
or (ii) by delivery of a promissory note of the Option holder to Orbit, payable on such terms and
conditions as the Board may determine, or (iii) by delivery of an unconditional and irrevocable
undertaking by a broker to deliver promptly to Orbit sufficient funds to pay the exercise price, or
(iv) by any combination of the permissible forms of payment; provided, that if the Common Stock
delivered upon exercise of the Option is an original issue of authorized Common Stock, at least so
much of the exercise price as represents the par value of such Common Stock must be paid other than
by the Option holder’s promissory note.

          (f) If the market price of shares of Common Stock subject to an Option exceeds the exercise
price of the Option at the time of its exercise, the Board may cancel the Option and cause Orbit to
pay in cash or in shares of Common Stock (at a price per share equal to the fair market value per
share) to the person exercising the Option an amount equal to the difference between the fair
market value of the Common Stock which would have been purchased pursuant to the exercise
(determined on the date the Option is canceled) and the aggregate exercise price which would have
been paid. The Board may exercise its discretion to take such action only if it has received a
written request from the person exercising the Option, but such a request will not be binding on
the Board.

     5.2 Stock Appreciation Rights.

          (a) A Stock Appreciation Right is an Award entitling the recipient on exercise of the Right
to receive an amount, in cash or Common Stock or a combination thereof (such form to be determined
by the Board), determined in whole or in part by reference to appreciation in Common Stock value.
In general, a Stock Appreciation Right entitles the Participant to receive, with respect to each
share of Common Stock as to which the Right is exercised, the excess of the share’s fair market
value on the date of exercise over its fair market value on the date the Right was granted.
However, the Board may provide at the time of grant that the amount the recipient is entitled to
receive will be adjusted upward or downward under rules established by the Board to take into
account the performance of the Common Stock in comparison with the performance of other stocks or
an index or indices of other stocks. The Board may also grant Stock Appreciation Rights that
provide that following a Change in Control of the Company (as defined in Section 6.3(b) hereof) the
holder of such Right will be entitled to receive, with respect to each

 

 

share of Common Stock subject to the Right, an amount equal to the excess of a specified value
(which may include an average of values) for a share of Common Stock during a period receding such
Change in Control over the fair market value of a share of Common Stock on the date the Right was
granted.

          (b) Stock Appreciation Rights may be granted in tandem with, or independently of, Options
granted under the Plan. A Stock Appreciation Right granted in tandem with an Option which is not an
ISO may be granted either at or after the time the Option is granted. A Stock Appreciation Right
granted in tandem with an ISO may be granted only at the time the Option is granted.

          (c) When Stock Appreciation Rights are granted in tandem with Options, the following rules
will apply:

               (1) The Stock Appreciation Right will be exercisable only at such time or times, and to the
extent, that the related Option is exercisable and will be exercisable in accordance with the
procedure required for exercise of the related Option.

               (2) The Stock Appreciation Right will terminate and no longer be exercisable upon the
termination or exercise of the related Option, except that a Stock Appreciation Right granted with
respect to less than the full number of shares covered by an Option will not be reduced until the
number of shares as to which the related Option has been exercised or has terminated exceeds the
number of shares not covered by the Stock Appreciation Right.

               (3) The Option will terminate and no longer be exercisable upon the exercise of the related
Stock Appreciation Right.

               (4) The Stock Appreciation Right will be transferable only with the related Option.

               (5) A Stock Appreciation Right granted in tandem with an ISO may be exercised only when the
market price of the Stock subject to the Option exceeds the exercise Price of such option.

          (d) A Stock Appreciation Right not granted in tandem with an Option will become exercisable
at such time or times, and on such terms and conditions, as the Committee may specify. The Board
may at any time accelerate the time at which all or any part of the Right may be exercised. Any
exercise of an independent Stock Appreciation Right must be in writing, signed by the proper person
and delivered or mailed to Orbit, accompanied by any other documents required by the Board.

     5.3 Restricted and Unrestricted Stock.

          (a) A Restricted Stock Award entitles the recipient to acquire, for a purchase price not
less than the par value, shares of Common Stock subject to the restrictions described in Section
5.3(d) below (“Restricted Stock”).

 

 

          (b) A Participant who is granted a Restricted Stock Award shall have no rights with respect
to such Award unless the Participant accepts the Award by written instrument delivered or mailed to
Orbit accompanied by payment in full of the specified purchase price, if any, of the shares covered
by the Award. Payment may be by certified or bank check or other instrument acceptable to the
Board.

          (c) A Participant who receives Restricted Stock shall have all the rights of a stockholder
with respect to such stock, including voting and dividend rights, subject to the restrictions
described in paragraph (d) below and any other conditions imposed by the Board at the time of
grant. Unless the Board otherwise determines, certificates evidencing shares of Restricted Stock
will remain in the possession of Orbit until such shares are free of all
restrictions under the Plan.

          (d) Except as otherwise specifically provided by the Plan or the Award, Restricted Stock
may not be transferred, sold, assigned, exchanged, pledged, gifted or otherwise disposed of, and if
a Participant suffers a Status Change (as defined in Section 6.1 below) for any reason, must be
offered to Orbit for purchase for the amount of cash paid for the such stock, or forfeited to Orbit
if no cash was paid. These restrictions will lapse and the shares will become unrestricted
(“Unrestricted Stock”) at such time or times, and on such terms and conditions, as the Board may
determine. The Board may at any time accelerate the time at which the restrictions on all or any
part of the shares will lapse.

          (e) Any Participant making, or required by an Award to make, an election under Section
83(b) of the Code with respect to Restricted Stock shall deliver to Orbit, within 10 days of the
filing of such election with the Internal Revenue Service, a copy of such election.

          (f) The Board may, at the time any Award described in this Section 5 is granted, provide
that any or all the Common Stock delivered pursuant to the Award will be Restricted Stock.

          (g) The Board may, in its sole discretion, approve the sale to any Participant of shares of
Common Stock free of restrictions under the Plan for a price which is not less than the par value
of the Common Stock, provided that the value of such Award, which equals the difference between the
price and the fair market value of such shares on the date of grant, is in lieu of a
reasonable amount of cash compensation.

     5.4 Performance Awards. A Performance Award entitles the recipient to receive, without
payment, an Award or Awards described in this Section 5 following the attainment of such
performance goals, during such measurement period or periods, and on such other terms and
conditions, all as the Board may determine. Performance goals may be related to overall corporate
performance, operating group or business unit performance, personal performance or such other
category of performance as the Board may determine. Financial performance may be measured by
revenue, operating income, net income, earnings per share, number of days sales outstanding in
accounts receivable, productivity, return on equity, common stock price, price-earnings multiple,
or such other financial factors as the Board may determine.

 

 

     5.5 Loans and Supplemental Grants.

          (a) The Company may make a loan to a Participant (“Loan”), either in connection with the
purchase of Common Stock under the Award or the payment of any Federal, state and local income tax
with respect to income recognized as a result of the Award. The Board shall have the authority, in
its sole discretion, to determine whether to make a Loan, the amount, terms and conditions of the
Loan, including the interest rate (which may be zero), whether the Loan is to be secured or
unsecured or with or without recourse against the borrower, the terms on which the Loan is to be
repaid and the terms and conditions, if any, under which the Loan may be forgiven. In no event
shall any Loan have a term (including extensions) in excess of ten years.

          (b) In connection with any Award, the Board may grant a cash award to the Participant
(“Supplemental Grant”) not to exceed an amount equal to (1) the amount of any Federal, state and
local income tax on ordinary income for which the Participant may be liable with respect to the
Award, determined by assuming taxation at the highest marginal rate, plus (2) an additional amount
on a grossed-up basis intended to make the Participant whole on an after-tax basis after
discharging all the Participant’s income tax liabilities arising from all payments under this
Section 5. Any payments under this Section 5.5(b) shall be made at the time the Participant incurs
Federal income tax liability with respect to the Award.

6. Events Affecting Outstanding Awards

     6.1 Termination of Service by Death or Disability. If a Participant ceases to be an
Employee or if there is a termination of the consulting service or other relationship in respect of
which a non-Employee Participant was granted an Award (such termination of employment or other
relationship being hereinafter referred to as a “Status Change”) by reason of death or permanent
disability (as determined by the Board), the following rules shall apply, unless otherwise
determined by the Board:

          (a) All Options and Stock Appreciation Rights held by the Participant at the time of such
Status Change, to the extent then exercisable, will continue to be exercisable by the Participant’s
heirs, executor, administrator or other legal or personal representative, for a period of one year
after the Participant’s Status Change. After the expiration of such one- year period, all such
Options and Stock Appreciation Rights shall terminate. In no event, however, shall an Option or
Stock Appreciation Right remain exercisable beyond the latest date on which it could have been
exercised without regard to this Section 6. All Options and Stock Appreciation Rights held by a
Participant at the time of such Status Change that are not then exercisable shall terminate upon
such Status Change.

          (b) All Restricted Stock held by the Participant at the time of such Status Change shall
immediately become free of all restrictions and conditions.

          (c) Any payment or benefit under a Performance Award or Supplemental Grant to which the
Participant was not irrevocably entitled at the time of such Status Change shall be forfeited and
the Award canceled as of the time of such Status Change.

 

 

     6.2 Termination of Service Other Than by Death or Disability. If a Participant suffers a
Status Change other than by reason of death or permanent disability (as determined by the Board),
the following rules shall apply, unless otherwise determined by the Board at the time of grant of
an Award:

          (a) All Options and Stock Appreciation Rights held by the Participant at the time of such
Status Change, to the extent then exercisable, will continue to be exercisable by the Participant
for a period of three months after the Participant’s Status Change. After the expiration of such
three-month period, all such Options and Stock Appreciation Rights shall terminate. In no event,
however, shall an Option or Stock Appreciation Right remain exercisable beyond the latest date on
which it could have been exercised without regard to this Section 6. All Options and Stock
Appreciation Rights held by a Participant at the time of such Status Change that are not then
exercisable shall terminate upon such Status Change.

          (b) All Restricted Stock held by the Participant at the time of such Status Change shall
immediately become free of all restrictions and conditions, unless such Status Change results from
a voluntary resignation or termination for Cause (as defined in Section 6.2(d)), in which event all
Restricted Stock held by the Participant at the time of the Status Change shall be transferred to
Orbit (and, in the event the certificates representing such Restricted Stock are held by Orbit,
such Restricted Stock shall be so transferred without any further action by the Participant) in
accordance with Section 5.3 above.

          (c) Any payment or benefit under a Performance Award or Supplemental Grant to which the
Participant was not irrevocably entitled at the time of such Status Change shall be forfeited and
the Award canceled as of the date of such Status Change.

          (d) A termination by the Company of a Participant’s employment with or service to the
Company shall be for “Cause” only if: (1) the Board determined that the Participant (i) was guilty
of gross negligence or willful misconduct in the performance of his or her duties for the Company,
or (ii) breached or violated, in a material respect, any agreement between the Participant and the
Company or any of the Company’s policy statements regarding conflicts-of-interest, insider trading
or confidentiality, or (iii) committed a material act of dishonesty or breach of trust; (2) such
determination was made at a duly convened meeting of the Board with respect to which the
Participant received at least 10 days prior written notice, had a reasonable opportunity to make a
statement and answer the allegations against him or her; and (3) either (i) the Participant was
given a reasonable opportunity to take remedial action but failed or refused to do so, or (ii) the
Board also determined, at such meeting, that an opportunity to take remedial action would not have
been meaningful under the circumstances.

          (e) For all purposes of this Section 6.2, (1) if a Participant is an Employee of a
subsidiary of and such subsidiary ceases to be a subsidiary of Orbit, then the Participant’s
employment with the Company will be deemed to have been terminated by the Company without Cause,
unless the Participant is transferred to Orbit or another subsidiary of Orbit; (2) the employment
with the Company of a Participant will not be deemed to have been terminated if the Participant is
transferred from Orbit to a subsidiary of Orbit, or vice versa, or from one

 

 

subsidiary of Orbit to another; and (3) if a Participant terminates his or her employment with the
Company following a reduction in his or her rate of compensation, then the Participant’s employment
with the Company will be deemed to have been terminated by the Company without Cause.

7. Grant and Acceptance of Awards

     7.1 The Board’s approval of a grant of an Award under the Plan, including the names of
Participants and the size of the Award, including the number of shares of Common Stock subject to
the Award, shall be reflected in minutes of meetings held by the Board or in written consents
signed by members of the Board. Once approved by the Board, each Award shall be evidenced by such
written instrument, containing such terms as are required by the Plan and such other terms,
consistent with the provisions of the Plan, as may be approved from time to time by the Board.

     7.2 Each instrument may be in the form of agreements to be executed by both the Participant
and Orbit, or certificates, letters or similar instruments, which need not be executed by the
Participant but acceptance of which shall evidence agreement to the terms thereof. The receipt of
an Award shall not impose any obligation on the Participant to accept the Award.

     7.3 Except as specifically provided by the Plan or the instrument evidencing an Award, a
Participant shall not become a stockholder of Orbit until (i) the Participant makes any required
payments in respect of the Common Stock issued or issuable pursuant to the Award, (ii) the
Participant furnishes Orbit with any required agreements, certificates, letters or other
instruments, and (iii) the Participant actually receives the shares of Common Stock. Subject to any
terms and conditions imposed by the Plan or the instrument evidencing an Award, upon the occurrence
of all of the conditions set forth in the immediately preceding sentence, a Participant shall have
all rights of a stockholder with respect to shares of Common Stock, including, but not limited to,
the right to vote such shares and to receive dividends and other distributions paid with respect to
such shares. The Board may, upon such conditions as it deems appropriate, provide that a
Participant will receive a benefit in lieu of cash dividends that would have been payable on any
and all Common Stock subject to the Participant’s Award, had such Common Stock been outstanding.
Without limitation, the Board may provide for payment to the Participant of amounts representing
such dividends, either currently or in the future, or for the investment of such amounts on behalf
of the Participant.

     7.4 Notwithstanding any other provision of the Plan, the Company shall not be obligated to
deliver any shares of Common Stock pursuant to the Plan or to remove any restriction from shares of
Common Stock previously delivered under the Plan (a) until all conditions to the Award have been
satisfied or removed, (b) until, in the opinion of counsel to Orbit, all applicable Federal and
state laws and regulations have been complied with, (c) if the outstanding Common Stock is at the
time listed on any stock exchange or included for quotation on an inter-dealer system, until the
shares to be delivered have been listed or included or authorized to be listed or included on such
exchange or system upon official notice of notice of issuance, (d) if it might cause Orbit to issue
or sell more shares of Common Stock than Orbit is then legally entitled to issue or sell, and (e)
until all other legal matters in connection with the issuance and delivery of

 

 

such shares have been approved by counsel to Orbit. If the sale of Common Stock has not been
registered under the Securities Act of 1933, as amended, the Company may require, as a condition to
exercise of an Award, such representations or agreements as counsel to Orbit may consider
appropriate to avoid violation of such Act and may require that the certificates evidencing such
Common Stock bear an appropriate legend restricting transfer. If an Award is exercised by the
Participant’s legal representative, the Company shall be under no obligation to deliver Common
Stock pursuant to such exercise until the Company is satisfied as to the authority of such
representative.

8. Tax Withholding

     The Company shall withhold from any cash payment made pursuant to an Award an amount
sufficient to satisfy all Federal, state and local withholding tax requirements (the “withholding
requirements”). In the case of an Award pursuant to which Common Stock may be delivered, the Board
shall have the right to require that the Participant or other appropriate person remit to the
Company an amount sufficient to satisfy the withholding requirements, or make other arrangements
satisfactory to the Board with regard to such requirements, prior to the delivery of any Common
Stock. If and to the extent that such withholding is required, the Board may permit a Participant
to elect at such time and in such manner as the Board may determine to have the Company hold back
from the shares of Common Stock to be delivered, or to deliver to the Company, Common Stock having
a value calculated to satisfy the withholding requirement. If at the time an ISO is exercised, the
Board determines that the Company could be liable for withholding requirements with respect to a
disposition of the Common Stock received upon exercise, the Board may require as a condition of
exercise that the person exercising the ISO agree (a) to inform the Company promptly of any
disposition (within the meaning of Section 424(c) of the Code) of Common Stock received upon
exercise, and (b) to give such security as the Board deems adequate to meet the potential liability
of the Company for the withholding requirements and to augment such security from time to time in
any amount reasonably deemed necessary by the Board to preserve the adequacy of such security.

9. Stockholder Approval, Effective Date and Term of Plan

     The Plan was adopted by the Board on March 17, 1997 (“Effective Date”), and approved by
Orbit’s stockholder on March 17, 1997. The Plan will continue in effect until terminated in
accordance with Section 10; provided, however, that no ISO will be granted hereunder on or after
the 10th anniversary of the Effective Date, but provided further, that ISOs granted prior to such
10th anniversary may extend beyond that date.

10. Effect, Amendment, Suspension and Termination

     Neither adoption of the Plan nor the grant of Awards to a Participant will affect the
Company’s right to grant to such Participant awards that are not subject to the Plan, to issue to
such Participant Common Stock as a bonus or otherwise, or to adopt other plans or arrangements
under which Common Stock may be issued to Employees or other persons or entities. The Board
reserves the right, at any time and from time to time, to amend the Plan in any way, or to suspend
or terminate the Plan, effective as of the date specified by the Board when it takes such action,

 

 

which date may be before or after the date the Board takes such action; provided that any such
action shall not affect any Awards granted before the actual date on which such action is taken by
the Board; and further provided that the approval of Orbit’s stockholders shall be required
whenever necessary for the Plan to continue to satisfy the conditions of Section 422 of the Code
with respect to the award of ISOs (unless the Board determines that ISOs shall no longer be granted
under the Plan), any bylaw, rule or regulation of the primary market system or stock exchange on
which Orbit’s Common Stock is then listed or admitted to trading, or any other applicable law, rule
or regulation.

11. Other Provisions

     11.1 Nothing contained in the Plan or any Award shall confer upon any Employee or other
Participant the right to continue in the employ of, or to continue to provide service to, the
Company or any affiliated corporation, or interfere in any way with the right of the Company or any
affiliated corporation to terminate the employment or service of any Employee or other Participant
for any reason.

     11.2 Corporate action constituting an offer by Orbit of Common Stock to any Participant
under the terms of an Award shall be deemed completed as of the date of grant of the Award,
regardless of when the instrument, certificate, or letter evidencing the Award is actually received
or accepted by the Participant.

     11.3 Except as otherwise specifically provided by an Award (other than an ISO), neither any
Award nor a Participant’s rights under any Award or under the Plan may be assigned or transferred
in any manner other than by will or under the laws of descent and distribution. An Award may be
exercised only by the Participant to whom such Award was granted (or by such Participant’s heirs,
estate, beneficiary or personal or legal representative under Section 6.1). The foregoing shall
not, however, restrict a Participant’s rights with respect to Unrestricted Stock or the outright
transfer of cash, nor shall it restrict the ability of a Participant’s heirs, estate,
beneficiaries, or personal or legal representatives to enforce the terms of the Plan with respect
to Awards granted to the Participant.

     11.4 The Plan, and all Awards granted hereunder, shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania. The headings of the Sections of the
Plan are for convenience of reference only and shall not affect the interpretation of the Plan. All
pronouns and similar references in the Plan shall be construed to be of such number and gender as
the context requires or permits. If any provision of the Plan is determined to be unenforceable for
any reason, then that provision shall be deemed to have been deleted or modified to the extent
necessary to make it enforceable, and the remaining provisions of the Plan shall be unaffected.

     11.5 All notices with respect to the Plan shall be in writing and shall be hand delivered or
sent by certified mail or reputable overnight delivery service, expenses prepaid. Notices to the
Company or the Board shall be delivered or sent to Orbit’s headquarters to the attention of its
Chief Financial Officer. Notices to any Participant or holder of shares of Common Stock issued

 

 

pursuant to an Award shall be sufficient if delivered or sent to such person’s address as it
appears in the regular records of the Company or Orbit’s transfer agent.

     11.6 If there is any change in the capitalization of Orbit, such as by stock dividend, stock
split, combination of shares, exchange of securities, recapitalization or other event which the
Board deems, in its sole discretion, to be similar circumstances, the Board may make such
adjustments to the number and/or kind of shares of stock or securities subject to Awards then
outstanding or subsequently granted, any exercise prices relating to such Awards and any other
provision of such Awards affected by such change, as the Board may determine in its sole
discretion. The Board may also make such adjustments to take into account material changes in law
or in accounting practices or principles, mergers, consolidations, acquisitions, dispositions or
similar corporate transactions, or any other event, as the Board may determine in its sole
discretion.

     11.7 The Board may agree at any time, upon request of a Participant, to defer the date on
which any payment under an Award shall be made.

     11.8 In any case that a Participant purchases Common Stock under an Award for a price equal
to the par value of the Common Stock, the Board may determine, in its sole discretion, that such
price has been satisfied by past services rendered by the Participant.

     11.9 For the purposes of the Plan and any Award granted hereunder, unless otherwise
determined by the Board, the term “fair market value” of Common Stock on or as of a specified date
shall mean either (i) in the case of an Option not granted under a Performance Award, the last sale
price (as defined below in this Section) for one share of Common Stock on the last trading day on
or before the specified date, or, if the foregoing does not apply, the market value determined by
the Board; or (ii) in the case of an Option granted under a Performance Award, the average of the
last sale prices during the first ten trading days beginning on or after the specified date, or the
average of the last sale prices during such other period of time beginning on or after the
specified date as is determined by the Board, or, if the foregoing does not apply, the market value
determined by the Board. “Last sale price” means the last sale price reported on The Nasdaq Stock
Market or on such other primary market system or stock exchange on which Orbit’s Common Stock is
then listed or admitted to trading.

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