Document:

exhibit10a.htm

    Exhibit 10(a)

    
 

    AMENDMENT
NO. 1

     

    TO THE
CREDIT AND SECURITY AGREEMENT

     

    This
AMENDMENT NO. 1 TO THE CREDIT AND SECURITY AGREEMENT (this “Amendment”), dated as
of July 28, 2009, is by and among PPL RECEIVABLES CORPORATION, as Borrower (the
“Borrower”),
PPL ELECTRIC UTILITIES CORPORATION, as Servicer (the “Servicer”), VICTORY
RECEIVABLES CORPORATION (“Victory”), as a
Lender, and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as
Liquidity Bank (in such capacity, the “Liquidity Bank”) and
as Agent (in such capacity, the “Agent”).  Capitalized
terms used but not otherwise defined herein shall have the respective meanings
assigned thereto in the Agreement (as defined below), including terms and
definitions incorporated by reference therein.

     

    WHEREAS,
the parties hereto have entered into that certain Credit and Security Agreement,
dated as of August 5, 2008 (as amended, supplemented and otherwise modified from
time to time and as may be further amended, supplemented and otherwise modified
from time to time, the “Agreement”);

     

    WHEREAS,
in connection with this Amendment, the parties hereto are entering into an
amended and restated Fee Letter, dated as of the date hereof (the “A&R Fee Letter”);
and

     

    WHEREAS,
the parties hereto desire to amend the Agreement as herein set
forth;

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

     

    SECTION
1. Amendments to the
Agreement.  The Agreement is hereby amended as
follows:

     

    1.1 The
definition of “Default
Rate” set forth in Exhibit I to the
Agreement is amended by replacing the percentage “2.00%” where it appears in
clause (ii)
thereof with the percentage “3.00%”.

     

    1.2 The
definition of “Facility Termination
Date” set forth in Exhibit I to the
Agreement is amended by replacing the date “July 29, 2009” where it appears in
clause (iii)
thereof with the date “July 27, 2010”.

     

    1.3 Section 5.1(l) of the
Agreement is amended by replacing the date “December 31, 2007” where it appears
therein with the date “December 31, 2008”.

     

    SECTION
2. Representations and
Warranties of the Originator.  Each of the Borrower and the
Servicer, as to itself, hereby represents and warrants to Victory, the Liquidity
Bank and the Agent as follows:

     

    2.1 The
representations and warranties of such Person contained in Article V of the
Agreement (as amended hereby) are true and correct as of the date hereof (unless
stated to relate solely to an earlier date, in which case such representations
and warranties were true and correct as of such earlier date).

     

    2.2 This
Amendment and the Agreement (as amended hereby) constitute the legal, valid and
binding obligation of such Person enforceable against such Person in accordance
with their respective terms, subject to the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar law affecting creditors’
rights generally and to the effect of general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law).

     

    2.3 Upon
giving effect to this Amendment, no Amortization Event or Unmatured Amortization
Event has occurred and is continuing.

     

    SECTION
3. Conditions to
Effectiveness.  This Amendment shall become effective as of the
date hereof upon receipt by the Agent of the following:

     

    3.1 counterparts
of this Amendment executed by each of the parties hereto;

     

    3.2 counterparts
of the A&R Fee Letter executed by each of the parties thereto;
and

     

    3.3 payment
in full of the renewal fee payable pursuant to the A&R Fee Letter in
accordance with the terms thereof.

     

    SECTION
4. Effect of Amendment;
Ratification.  Except as specifically amended hereby, the
Agreement is hereby ratified and confirmed in all respects, and all of its
provisions shall remain in full force and effect.  After this
Amendment becomes effective, all references in the Agreement (or in any other
Transaction Document) to “this Agreement”, “hereof”, “herein”, or words of
similar effect, in each case referring to the Agreement, shall be deemed to be
references to the Agreement as amended hereby.  This Amendment shall
not be deemed to expressly or impliedly waive, amend, or supplement any
provision of the Agreement other than as specifically set forth
herein.

     

    SECTION
5. Counterparts;
Delivery.  This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, and each
counterpart shall be deemed to be an original, and all such counterparts shall
together constitute but one and the same instrument.  Delivery of an
executed counterpart of a signature page to this Amendment by facsimile or other
electronic means shall be effective as delivery of a manually executed
counterpart of this Amendment.

     

    SECTION
6. GOVERNING
LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK BUT OTHERWISE WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES).

     

    SECTION
7. Section
Headings.  The various headings of this Amendment are inserted
for convenience only and shall not affect the meaning or interpretation of this
Amendment or the Agreement or any provision hereof or thereof.

     

    [Signature
pages follow.]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date
first written above.

     

    PPL
RECEIVABLES CORPORATION,

    as
Borrower

    

    

    By:   __________________________                                                                        

    Name:

    Title:

    

    

    PPL
ELECTRIC UTILITIES CORPORATION,

    as
Servicer

    

    

    By:  ___________________________                                                                         

    Name:

    Title:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    VICTORY
RECEIVABLES CORPORATION,

    as a
Lender

    

    

    By:  ____________________________                                                                         

    Name:

    Title:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THE BANK
OF TOKYO-MITSUBISHI UFJ. LTD., NEW YORK BRANCH, as a Liquidity Bank

    

    

    By:    _____________________________                                                                       

    Name:

    Title:

    

    

    

    THE BANK
OF TOKYO-MITSUBISHI UFJ. LTD., NEW YORK BRANCH, as Agent

    

    

    By:   ______________________________                                                                        

    Name:

    Title:exhibit10b.htm

    
Exhibit 10(b)

     

    AMENDED
AND RESTATED FEE LETTER

     

    July 28,
2009

     

    PPL
Receivables Corporation

    3993
Howard Hughes Parkway

    Suite
250

    Las
Vegas, Nevada 89169

     

    Ladies
and Gentlemen:

     

    This
letter agreement (this “Fee Letter”) is the
Fee Letter referred to in the Credit and Security Agreement, dated as of August
5, 2008, by and among PPL Receivables Corporation, as borrower (the “Borrower”), PPL Electric Utilities
Corporation, as Servicer (“PPL
Electric”), Victory Receivables Corporation (“Victory”),
the liquidity banks from time to time parties thereto and The Bank of
Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as agent (the “Agent”)
(as amended, restated or otherwise modified from time to time, the “Agreement”).  Capitalized
terms used herein without definition have the meanings ascribed to such terms in
the Agreement.

     

    This Fee
Letter amends and restates and supersedes that certain fee letter agreement,
dated as of August 5, 2008 (the “Existing Fee
Letter”), entered into among the parties hereto in connection with the
Agreement.  Accordingly, from and after the date hereof this Fee
Letter shall constitute the Fee Letter referenced in the Agreement; provided, however,
that  all fees that have accrued under the Existing Fee Letter up to
the date hereof shall be payable as and when required in accordance with the
terms thereof.

     

    1. On the
date hereof, the Borrower shall pay or cause to be paid to the Agent a renewal
fee in the amount of $105,000, which fee shall be fully earned on the date
hereof and non-refundable in whole or in part and shall be paid by a method
acceptable to both parties.

     

    2. In
addition to the legal, audit and other fees and expenses set forth in Section
10.3 of the Agreement and other amounts due to the Agent or Victory under the
terms of the Agreement, the Borrower hereby agrees to pay or cause to be paid to
the Agent for each day from and after the date hereof, monthly in arrears on
each Settlement Date and on the Facility Termination Date, in immediately
available funds:

     

    (a) for the
portion of the Aggregate Principal funded with Commercial Paper, a fee computed
at the rate of 1.20% per annum on the portion of the average Aggregate Principal
outstanding on each day during the immediately preceding Settlement Period (the
“Program
Fee”); and

     

    (b) a fee in
an amount equal to the sum of 0.50% per annum on the average daily excess, if
any, during the immediately preceding Settlement Period of (1) the Borrowing
Limit over (2) the Aggregate Principal (the “Unused
Fee”).

     

    The
Program Fee and the Unused Fee shall be computed for actual days elapsed on the
basis of a 360-day year, provided, however, with respect
to the Facility Termination Date, the fee payable shall be equal to the Program
Fee and the Unused Fee accrued for the actual number of days elapsed from the
last day of the Settlement Period immediately preceding the most recent
scheduled Settlement Date to the Facility Termination Date.

     

    3. “Applicable Margin”
shall mean, at any time, 2.25%.

     

    4. In
satisfaction of the obligation of the Borrower under Section 10.3 to pay legal
fees of the Agent and Victory in respect of the administration of the Agreement
and the transactions contemplated thereby, the Borrower shall pay or cause to be
paid the legal fees of Mayer Brown LLP in connection with the negotiation,
execution and delivery of this Fee Letter, the Agreement and the related
amendments to the other Transaction Documents plus out-of-pocket
expenses.

     

    5. The
Borrower and the Servicer shall maintain and shall cause each of its employees
and officers to maintain the confidentiality of this Fee Letter, except that
such Person and its officers and employees may disclose such information to such
Person’s external accountants and attorneys and as required by any applicable
law or order of any judicial or administrative proceeding.

     

    6. THIS FEE
LETTER, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW).

    [Remainder
of page intentionally blank.]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Please
confirm your agreement to the foregoing by signing this Fee Letter in the space
provided below and returning it to the undersigned.

     

    Very
truly yours,

    

    THE BANK
OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH,

    as
Agent

    

    

    By:    ________________________________________                                                                      

    Name:

    Title:

    

    

    VICTORY
RECEIVABLES CORPORATION

    

    

    By:   _________________________________________                                                                       

    Name:

    Title:

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Accepted
and Agreed as of the date first above written:

     

    PPL
RECEIVABLES CORPORATION

     

    

     

    

     

    By:   _________________________                                                             

    Name:

    Title:

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