Document:

Exhibit

Exhibit 4(b)
_____________________________________________________________________________________________

KENTUCKY UTILITIES COMPANY

TO

THE BANK OF NEW YORK MELLON,

Trustee

_____________________________

Supplemental Indenture No. 5 
dated as of August 1, 2016

_____________________________

Supplemental to the Indenture 
dated as of October 1, 2010

_____________________________

Establishing

First Mortgage Bonds, Collateral Series 2016CCA 

_____________________________________________________________________________________________

 
 

SUPPLEMENTAL INDENTURE NO. 5

SUPPLEMENTAL INDENTURE No. 5, dated as of the 1st  day of August, 2016, made and entered into by and between KENTUCKY UTILITIES COMPANY, a corporation duly organized and existing under the laws of the Commonwealths of Kentucky and Virginia, having its principal corporate offices at One Quality Street, Lexington, Kentucky 40507 (hereinafter sometimes called the “Company”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, having its corporate trust office at 500 Ross Street, 12th Floor, Pittsburgh, Pennsylvania 15262 and having its principal place of business at 225 Liberty Street, New York, New York 10281 (hereinafter sometimes called the “Trustee”), as Trustee under the Indenture, dated as of October 1, 2010 (hereinafter called the “Original Indenture”), between the Company and said Trustee, as heretofore supplemented, this Supplemental Indenture No. 5 being supplemental thereto.  The Original Indenture, as heretofore supplemented, and this Supplemental Indenture No. 5 are hereinafter sometimes, collectively, called the “Indenture.”

Recitals of the Company

The Original Indenture was authorized, executed and delivered by the Company to provide for the issuance from time to time of its Securities (such term and all other capitalized terms used herein without definition having the meanings assigned to them in the Original Indenture), to be issued in one or more series as contemplated therein, and to provide security for the payment of the principal of and premium, if any, and interest, if any, on such Securities.

The Company has heretofore executed and delivered supplemental indentures for the purpose of creating series of Securities as set forth in Exhibit A hereto.

The Original Indenture and Supplemental Indentures No. 1, No. 2 and No. 3, and financing statements in respect thereof, have been duly recorded and filed in the various official records in the Commonwealth of Kentucky as set forth in Supplemental Indenture No. 4.

Supplemental Indenture No. 4 has been duly recorded and filed in the various official records in the Commonwealth of Kentucky as set forth in Exhibit B hereto.

Pursuant to Article Three of the Original Indenture, the Company wishes to establish a series of Securities, such series of Securities to be hereinafter sometimes called “Securities of Series No. 8”.

As contemplated in Section 301 of the Original Indenture, the Company further wishes to establish the designation and certain terms of the Securities of Series No. 8.  The Company has duly authorized the execution and delivery of this Supplemental Indenture No. 5 to establish the designation and certain terms of such series of Securities and has duly authorized the issuance of such Securities; and all acts necessary to make this Supplemental Indenture No. 5 a valid agreement of the Company, and to make the Securities of Series No. 8 valid obligations of the Company, have been performed.

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE NO. 5 WITNESSETH, that, for and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order to secure the payment of the principal of and premium, if any, and interest, if any, on all Securities from time to time Outstanding and the performance of the covenants 

therein and in the Indenture contained, the Company hereby grants, bargains, sells, conveys, assigns, transfers, mortgages, pledges, sets over and confirms to the Trustee, and grants to the Trustee a security interest in and lien on, the real property specifically referred to in Exhibit C attached hereto and incorporated herein by reference and all right, title and interest of the Company in and to all property personal and mixed located thereon (other than Excepted Property), as and to the extent, and subject to the terms and conditions, set forth in the Original Indenture, as heretofore amended; and it is further mutually covenanted and agreed, for the benefit of the Holders of the Securities of Series No. 8, as follows: 

ARTICLE ONE 
 
SECURITIES OF SERIES NO. 8

SECTION 101.    Creation of Series No. 8.

There is hereby created a series of Securities designated “First Mortgage Bonds, Collateral Series 2016CCA”, and the Securities of such series shall: 

(a)   be issued in the aggregate principal amount of $96,000,000 and shall be limited to such aggregate principal amount (except as contemplated in Section 301(b) of the Original Indenture); 

(b)   be dated August 25, 2016;

(c)   have a Stated Maturity of September 1, 2042, subject to prior redemption by the Company; 

(d)   have such additional terms as are established in an Officer’s Certificate as contemplated in Section 301 of the Original Indenture; and

(e)   be in substantially the form or forms established therefor in an Officer’s Certificate, as contemplated by Section 201 of the Original Indenture.

ARTICLE TWO 
 
MISCELLANEOUS PROVISIONS 

SECTION 201.    Single Instrument. 

This Supplemental Indenture No. 5 is an amendment and supplement to the Original Indenture as heretofore amended and supplemented.  As amended and supplemented by this Supplemental Indenture No. 5, the Original Indenture, as heretofore supplemented, is in all respects ratified, approved and confirmed, and the Original Indenture, as heretofore supplemented, and this Supplemental Indenture No. 5 shall together constitute the Indenture.

SECTION 202.    Trustee.

The Trustee accepts the amendment of the Original Indenture effected by this Supplemental Indenture No. 5 upon the terms and conditions set forth in the Original Indenture, as heretofore amended and supplemented, including the terms and provisions defining and limiting the liabilities and responsibilities of the Trustee, which terms and provisions shall in like manner define and limit its liabilities and responsibilities 

in the performance of the trust created by the Original Indenture, as heretofore amended and supplemented, and as hereby amended. The Recitals of the Company contained in this Supplemental Indenture No. 5 shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness and makes no representations as to the validity or sufficiency of this Supplemental Indenture No. 5.

SECTION 203.    Effect of Headings. 

The Article and Section headings in this Supplemental Indenture No. 5 are for convenience only and shall not affect the construction hereof.

___________________

This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 5 to be duly executed as of the day and year first written above.

	
				
	 
	KENTUCKY UTILITIES COMPANY

	 
	 
	 

	 
	By:
	/s/ Daniel K. Arbough

	 
	 
	Name: 
	Daniel K. Arbough

	 
	 
	Title:
	Treasurer

ATTEST:

	
		
	/s/ Gerald A. Reynolds

	Name: 
	Gerald A. Reynolds

	Title:
	General Counsel, Chief Compliance
Officer and Corporate Secretary

[Signature Page to Supplemental Indenture No. 5 - Kentucky Utilities Company]

	
				
	 
	THE BANK OF NEW YORK MELLON, as Trustee

	 
	 
	 

	 
	By:
	/s/ Francine Kincaid

	 
	 
	Name: 
	Francine Kincaid

	 
	 
	Title:
	Vice President 

[Signature Page to Supplemental Indenture No. 5 - Kentucky Utilities Company]

	
			
	COMMONWEALTH OF KENTUCKY
	)
	 

	 
	)
	ss.:

	COUNTY OF JEFFERSON
	)
	 

On this 11th day of August, 2016, before me, a notary public, the undersigned, personally appeared Daniel K. Arbough, who acknowledged himself to be the Treasurer of KENTUCKY UTILITIES COMPANY, a corporation of the Commonwealths of Kentucky and Virginia 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/ Betty L. Brinly                   
Notary Public 
[Seal] 

[Signature Page to Supplemental Indenture No. 5 - Kentucky Utilities Company]

	
			
	STATE OF NEW YORK
	)
	 

	 
	)
	ss.:

	COUNTY OF NEW YORK
	)
	 

On this 9th day of August, 2016, before me, a notary public, the undersigned, personally appeared Francine Kincaid, who acknowledged herself to be a Vice President of THE BANK OF NEW YORK MELLON, a corporation and that she, as Vice President, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by herself as Vice President.

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

		
	By:
	/s/ Christopher J. Traina                    
Christopher J. Traina 
Notary Public – State of New York 
No. 01TR6297825 
Qualified in Queens County 
Certified in New York County 
My Commission Expires  
March 03, 2018 

The Bank of New York Mellon hereby certifies that its precise name and address as Trustee hereunder are:

The Bank of New York Mellon
500 Ross Street, 12th Floor 
Pittsburgh, Pennsylvania 15262 
Attn:  Corporate Trust Administration

	
				
	 
	THE BANK OF NEW YORK MELLON, as Trustee

	 
	By:
	/s/ Francine Kincaid

	 
	 
	Name:
	Francine Kincaid

	 
	 
	Title
	Vice President

[Signature Page to Supplemental Indenture No. 5 - Kentucky Utilities Company]

CERTIFICATE OF PREPARER

The foregoing instrument was prepared by:

James J. Dimas, Senior Corporate Attorney
Kentucky Utilities Company
220 West Main Street
Louisville, Kentucky  40202

        /s/ James J. Dimas             
James J. Dimas

[Signature Page to Supplemental Indenture No. 5 - Kentucky Utilities Company]

EXHIBIT A

KENTUCKY UTILITIES COMPANY 
________________ 
 
Bonds Issued and Outstanding 
under the Indenture 
________________

	
							
	Supplemental Indenture No.
	Dated as of
	Series 
No.
	Series Designation
	Date of Securities
	Principal
Amount Issued
	Principal
Amount
Outstanding1

	1
	October 15, 2010
	1
	Collateral Series 2010
	October 28, 2010
	$350,779,405
	$350,779,405

	2
	November 1, 2010
	2
	1.625% Series due 2015
	November 16, 2010
	$250,000,000
	None

	 
	 
	3
	3.250% Series due 2020
	November 16, 2010
	$500,000,000
	$500,000,000

	 
	 
	4
	5.125% Series due 2040
	November 16, 2010
	$750,000,000
	$750,000,000

	3
	November 1, 2013
	5
	4.65% Series due 2043
	November 14, 2013
	$250,000,000
	$250,000,000

	4
	September 1, 2015
	6
	3.30% Series due 2025
	September 28, 2015
	$250,000,000
	$250,000,000

	 
	 
	7
	4.375% Series due 2045
	September 28, 2015
	$250,000,000
	$250,000,000

                                                           
1   As of August 1, 2016.

A-1

EXHIBIT B

KENTUCKY UTILITIES COMPANY 
________________ 
 
Filing and Recording 
of 
Supplemental Indenture No. 4, dated as of September 1, 2015, 
to 
Indenture, dated as of October 1, 2010 
________________
	
		
	COUNTY NAME
	BOOK AND PAGE NUMBER

	Adair
	MB 338 P 655

	Anderson
	MB 545, Pg 29-48

	Ballard
	Mortgage Book 80, Page 105

	Barren
	MB 552 P 170

	Bath
	MB 221-100

	Bell
	Book/page: 331/795

	Bourbon
	Mortgage Book 587, Page 443

	Boyle
	MB 683 PG 50

	Bracken
	M285, PG277

	Bullitt
	MB 1609 P 487

	Caldwell
	Book 309, Page 169

	Carroll
	M 229, Pages: 1-20

	Casey
	MB 241 P 844

	Christian
	MB 1415, page 172

	Clark
	M 813, PG 475

	Clay
	Book 216, Pages 507-526

	Crittenden
	MTG Book 212, Page 304

	Estill
	M E 10, Page 300

	Fayette
	MB 8388, Page 564-584

	Fleming
	MB 327-547

	Franklin
	M 1355, Pg 229-248

	Fulton
	MTG No. 181, Pages 293-312

	Gallatin
	M219, Pages: 458-477

	Garrard
	MB342, page 60-79

	Grayson
	MB 21x, PG 643

	Green
	MB 298, Pg 113

	Hardin
	MB 2140 P 744

	Harlan
	MTG BK 436, PG 439

	Harrison
	MB 385 PG 484

	Hart
	MB 363 P 404

	Henry
	MB 334, P 15-34

	Hickman
	Mortgage Book 111, Page 59

B-1

	
		
	Hopkins
	MB 1138, page 363

	Jessamine
	MB 1227 page 307

	Knox
	MB 425 PG346

	Larue
	Mtg Book 343, Page 610

	Laurel
	MB 1102 PG142

	Lee
	MTG 112, Page 237

	Lincoln
	MB 428, PG 649

	Livingston
	M297, PG 698

	Lyon
	MB 232, Pg 540

	Madison
	MB1641, page 143

	Marion
	MB 394, PG 741

	Mason
	MB 426-750

	McCracken
	Mtg Book No. 1476, Page 681

	McLean
	MB 190, PG 378

	Mercer
	MB 619 Page 656

	Montgomery
	MB 516-850

	Muhlenberg
	MB 670, PG 33

	Nelson
	MB 1078 PG 107

	Nicholas
	MB 152-643

	Ohio
	MB 509, PG 366

	Oldham
	M2177, Pages: 640-659

	Owen
	M259, PG 206

	Pendleton
	Deed Book No. 332, Page 399-418

	Pulaski
	MB 1455 P 546

	Robertson
	MB 63 PG38

	Rockcastle
	Mtg Book 265, Page 173

	Rowan
	Book: A363 Pages 580-599

	Russell
	MB 377 P 110

	Scott
	MB 1249, page 532

	Shelby
	MB 986 PG 368

	Taylor
	M544, Page 201

	Trimble
	M 205, PG 363

	Union
	Mortgage Book 418, Page 241

	Washington
	Mortgage Book N. 271, Page 599

	Webster
	MB 325 PG 328

	Whitley
	MB 596 PG890

	Woodford
	MB 757, Page 08

B-2

EXHIBIT C

KENTUCKY UTILITIES COMPANY
____________________

REAL PROPERTY
____________________

Schedule of real property owned in fee located in the Commonwealth of Kentucky

Ballard County, Kentucky:

Tract I:

Lot  #7 as shown on the Plat of Subdivision for West Kentucky Technology Park, which plat was recorded July 20, 1993, in Plat Book “F”, page 4 (now Plat Cabinet 1, Slide 154), Ballard County Clerk’s Office.

Tract II:

Lot #8 as shown on the Plat of Subdivision for West Kentucky Technology Park, which plat was recorded July 20, 1993, in Plat Book “F”, page 4 (now Plat Cabinet 1, Slide 154), Ballard County Clerk’s Office.

Tract III:

Lot #9 as shown on the Revision to Plat of Subdivision for West Kentucky Technology Park, which plat was recorded May 8, 1997, in Plat Book “F”, page 58 (now Plat Cabinet 1, Slide 208), Ballard County Clerk’s Office.

Being the same property conveyed to Kentucky Utilities Company by Deed dated December 22, 2015, of record in Deed Book 109, Page 199 in the Office of the Clerk of Ballard County, Kentucky.

C-1Exhibit

Exhibit 4(c)

KENTUCKY UTILITIES COMPANY

OFFICER’S CERTIFICATE

(under Sections 201 and 301 of the Indenture, dated as of October 1, 2010)

Establishing the Form and Certain Terms of the
First Mortgage Bonds, Collateral Series 2016CCA

The undersigned Daniel K. Arbough, the Treasurer of KENTUCKY UTILITIES COMPANY (the “Company”), in accordance with Sections 201 and 301 of the Indenture, dated as of October 1, 2010 (the “Original Indenture”), as amended and supplemented by various instruments including Supplemental Indenture No. 5, dated as of August 1, 2016 (as so amended and supplemented, the “Indenture”), of the Company to The Bank of New York Mellon, trustee (the “Trustee”), does hereby establish, for the Securities of Series No. 8 established in Supplemental Indenture No. 5, the terms and characteristics set forth in this Officer’s Certificate (capitalized terms used herein and not defined herein having the meanings specified in the Original Indenture).

Set forth below are the terms and characteristics of the aforesaid series of Securities referred to in clauses (a) through (u) in the third paragraph of Section 301 of the Indenture (the lettered clauses set forth herein corresponding to such clauses in said Section 301):

	
				
	 
	(a)
	the title of the Securities of such series shall be “First Mortgage Bonds, Collateral Series 2016CCA” (the “Bonds”);

	 
	 
	 

	 
	(b)
	the aggregate principal amount of Bonds which may be authenticated and delivered under the Indenture shall be limited to $96,000,000 as and to the extent set forth in Supplemental Indenture No. 5; the Stated Maturity of the Bonds will be September 1, 2042;

	 
	 
	 
	 

	 
	(c)
	(1)
	the Bonds are to be issued and delivered to, and registered in the name of U.S. Bank National Association, as trustee (the “Revenue Bond Trustee”) under an indenture of trust dated as of August 1, 2016 (the “Revenue Bond Indenture”), which relates to Pollution Control Revenue Refunding Bonds, 2016 Series A (Kentucky Utilities Company Project) (the “Revenue Bonds”) issued by the County of Carroll, Kentucky (the “Governmental Issuer”);

	 
	 
	 
	 

	 
	 
	(2)
	the Bonds will be issued and delivered to, and registered in the name of, the Revenue Bond Trustee under the Revenue Bond Indenture to convey the benefit of the lien of the Indenture to such Revenue Bond Trustee for the benefit of the holders of the Revenue Bonds issued and outstanding thereunder.  All payments of principal of and interest on the Bonds shall be payable to the Revenue Bond Trustee as the registered holder of the Bonds;

	 
	 
	 
	 

	 
	(d)
	the principal of the Bonds shall be due and payable on the applicable Stated Maturity date specified in clause (b); and the Company shall not have the right to extend the Maturity of the Bonds as contemplated in Section 301(d) of the Original Indenture;

	 
	 
	 

	 
	(e)
	the Bonds shall bear interest at the same rate borne from time to time by the Revenue Bonds; provided, however, that if such Revenue Bonds shall bear interest at more than one rate, the rate of interest borne by the Bonds shall be such composite rate as shall produce the same dollar amount of accrued interest on such Bonds as is produced on such Revenue Bonds; and provided, further, that interest on the Bonds shall not commence to accrue unless and until:

		
	(1)
	the Bonds are to be mandatorily redeemed as contemplated in clause (g), or

		
	(2)
	all Securities Outstanding under the Indenture shall have become immediately due and payable pursuant to Section 1002 of the Original Indenture,

and, in either such event, interest shall commence to accrue from the last date to which interest on the Revenue Bonds shall have been paid in full (the “Initial Interest Accrual Date”), as specified by the Revenue Bond Trustee in a written notice to the Trustee; interest on the Bonds, having commenced to accrue as aforesaid, shall be and remain immediately due and payable until paid in full (unless the mandatory redemption or acceleration giving rise to the accrual of interest as aforesaid shall have been rescinded or annulled, in which event such accrual of interest shall automatically be rescinded and annulled); and in no event shall the amount of interest accrued on the Bonds exceed the amount of interest accrued on the Revenue Bonds; and the Company shall not have any right to extend any interest payment periods for the Bonds as contemplated in Sections 301(e) and 312 of the Original Indenture;

		
	(f)
	the Corporate Trust Office of the Trustee in Pittsburgh, Pennsylvania shall be the office or agency of the Company at which the principal of and any premium and interest on the Bonds at Maturity shall be payable, at which registration of transfers and exchanges of the Bonds may be effected and at which notices and demands to or upon the Company in respect of the Bonds and the Indenture may be served; and the Trustee will initially be the Security Registrar and the Paying Agent for the Bonds; provided, however, that the Company reserves the right to change, by one or more Officer’s Certificates, any such office or agency and such agent;

		
	(g)
	If the Revenue Bonds shall have become immediately due and payable due to the occurrence and continuance of an Event of Default under the Revenue Bond Indenture (which Event of Default shall have been caused by an event of default under the loan agreement dated as of August 1, 2016 between the Company and the Governmental Issuer relating to the Revenue Bonds (the “Agreement”) that has resulted in a default in payment of the principal of or premium, if any, or interest on such Revenue Bonds, or a default in a payment of purchase price with respect thereto) and if all Securities Outstanding under the Indenture shall not have become immediately due and payable following an Event of Default under the Indenture, the Bonds shall be redeemed by the Company, in whole, at a redemption price equal to 100% of the principal amount thereof plus accrued interest from the Initial Interest Accrual Date to the date of redemption upon receipt by the Company and the Trustee of a written demand for such redemption (a “Redemption Demand”) executed and delivered by the Revenue Bond Trustee and stating (1) that such Revenue Bonds have become immediately due and payable due to the occurrence and continuance of an Event of Default under the Revenue Bond Indenture, (2) that such Event of Default was caused by an event of default under the Agreement that resulted in a default in payment of the principal of or premium, if any, or interest on such Revenue Bonds, or a default in a payment of purchase price with respect thereto, (3) that the redemption of the Bonds is thereby demanded by such Revenue Bond Trustee and (4) the last date to which interest on such Revenue Bonds has been paid in full; provided, however, that any rescission or annulment of the acceleration of maturity of the Revenue Bonds shall constitute the rescission and annulment of the Company’s obligation to redeem the Bonds. No notice of any such redemption shall be required to be given;

		
	(h)
	inapplicable;

		
	(i)
	the Bonds shall be issuable in denominations of $1,000 and any integral multiple thereof;

		
	(j)
	inapplicable;

		
	(k)
	inapplicable;

		
	(l)
	inapplicable;

		
	(m)
	inapplicable;

		
	(n)
	inapplicable;

		
	(o)
	inapplicable;

		
	(p)
	inapplicable;

		
	(q)
	the Bonds shall be non-transferable except to a successor Revenue Bond Trustee under the Revenue Bond Indenture; no service or other charge shall be made for any registration of transfer or exchange of the Bonds;

		
	(r)
	inapplicable;

		
	(s)
	inapplicable;

		
	(t)
	inapplicable; and

		
	(u)
	(1)        anything herein to the contrary notwithstanding, the obligation of the Company to make any payment of the principal of or interest on the Bonds shall be deemed to be satisfied and discharged to the extent of the corresponding payment (A) made by the Company to the Revenue Bond Trustee pursuant to the Agreement and/or (B) made with moneys on deposit in any fund or account maintained under such Revenue Bond Indenture for the payment of the principal of or interest on the Revenue Bonds;

		
	(2)
	the Trustee may conclusively presume that the obligation of the Company to pay the principal of and interest on the Bonds 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 Revenue Bond Trustee, as Holder of such Bonds, signed by an authorized officer thereof, stating that the principal of and/or interest on such Bonds has become due and payable and has not been fully paid, and specifying the amount of funds required to make such payment;

		
	(3)
	The Trustee may conclusively presume that all statements made in a Redemption Demand are true and correct and, unless advised to the contrary by the Revenue Bond Trustee in a written notice to the Trustee, that no redemption demanded in a Redemption Demand has been rescinded, and shall be entitled to receive, and to conclusively rely on, a written notice from the Revenue Bond Trustee as to the amount of interest accruing on the Bonds from time to time; and

		
	(4)
	except as otherwise determined by the proper officers of the Company and established in one or more Officer’s Certificates supplemental to this Officer’s Certificate, the Bonds shall be substantially in the form of the Bond attached hereto as Exhibit A, which form is hereby authorized and approved, and shall have such further terms as are set forth in such form.

IN WITNESS WHEREOF, I have executed this Officer’s Certificate this 25th day of August, 2016.

/s/ Daniel K. Arbough                         
Name:    Daniel K. Arbough
Title:      Treasurer

ATTEST:

	
		
	/s/ Gerald A. Reynolds                                                                  

	Name:
	Gerald A. Reynolds

	Title:
	General Counsel, Chief Compliance

	 
	Officer and Corporate Secretary

[Signature Page to Officer’s Certificate under Sections 201 and 301 of the Indenture]

EXHIBIT A

THIS SECURITY IS NON-TRANSFERABLE EXCEPT TO A SUCCESSOR REVENUE
BOND TRUSTEE UNDER THE REVENUE BOND INDENTURE SPECIFIED BELOW.

[FORM OF BOND]
No.

Principal Amount: $

Stated Maturity:

Governmental Issuer: County of Carroll, Kentucky

	
		
	Revenue Bonds:
	Pollution Control Revenue Refunding Bonds, 2016 Series A (Kentucky

	 
	Utilities Company Project)

	
		
	Revenue Bond Indenture:
	Indenture of Trust, dated as of August 1, 2016, between the Governmental Issuer and the Revenue Bond Trustee

Revenue Bond Trustee:                                                          , as trustee under the Revenue Bond Indenture

KENTUCKY UTILITIES COMPANY

FIRST MORTGAGE BOND, COLLATERAL SERIES 2016CCA

KENTUCKY UTILITIES COMPANY, a corporation duly organized and existing under the laws of the Commonwealths of Kentucky and Virginia, (herein referred to as the “Company,” which term includes any Successor Corporation under the Indenture referred to below), for value received, hereby promises to pay to the Revenue Bond Trustee specified above, the principal sum of

MILLION   ($                ) Dollars

on the Stated Maturity specified above, and to pay interest from the Initial Interest Accrual Date (as defined below) on said principal sum at the rate from time to time borne by the Revenue Bonds specified above; provided, however, that if such Revenue Bonds shall bear interest at more than one rate, the rate of interest borne by this Security shall be such composite rate as shall produce the same dollar amount of accrued interest on this Security as is produced on such Revenue Bonds.  No interest will accrue on the Securities with respect to the day on which the Securities mature.

CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

Date of Authentication:
	
			
	 
	THE BANK OF NEW YORK MELLON, as trustee

	 
	 
	 

	 
	By:
	 

	 
	 
	Authorized Signatory

A-1

Interest on this Security will be computed on the same basis as interest on the Revenue Bonds specified above as provided in the Revenue Bond Indenture specified above.

Interest on the Securities of this series shall not commence to accrue unless and until:

		
	(1)
	the Securities of this series are to be mandatorily redeemed as contemplated below, or

		
	(2)
	all Securities Outstanding under the Indenture referred to below shall have become immediately due and payable pursuant to Section 1002 of the Original Indenture (as defined below),

and, in either such event, interest shall commence to accrue from the last date to which interest on the Revenue Bonds specified above shall have been paid in full (the “Initial Interest Accrual Date”), as specified by the Revenue Bond Trustee specified above in a written notice to the Trustee.

Payment of the principal of and premium, if any, and interest at Maturity on this Security shall be made upon presentation of this Security at the corporate trust office of The Bank of New York Mellon in New York, New York, or at such other office or agency as may be designated for such purpose by the Company from time to time, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, and payment of interest, if any, on this Security (other than interest payable at Maturity) shall be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.

This Security is one of a duly authorized issue of Securities of the Company (herein called the “Securities”), issued and issuable in one or more series under an Indenture, dated as of October 1, 2010 (herein called the “Original Indenture” and, together with any amendments or supplements thereto and the Officer’s Certificate establishing the terms of the Securities of this series, the “Indenture,” which term shall have the meaning assigned to it in the Original Indenture), between the Company and The Bank of New York Mellon, as trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture, including Supplemental Indenture No. 5 thereto, for a statement of the property mortgaged, pledged and held in trust, the nature and extent of the security, the conditions upon which the lien of the Indenture may be released and the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.  The acceptance of this Security by the Holder hereof shall be deemed to constitute the consent and agreement by such Holder to all of the terms and provisions of the Indenture.  This Security is one of the series designated on the face hereof.

If the Revenue Bonds specified above shall have become immediately due and payable due to the occurrence and continuance of an Event of Default under the Revenue Bond Indenture specified above (which Event of Default shall have been caused by an event of default under the Agreement (as defined in the Revenue Bond Indenture specified above) between the Company and the Governmental Issuer specified above (the “Agreement”) that has resulted in a default in payment of the principal of or premium, if any, or interest on such Revenue Bonds, or a default in a payment of purchase price with respect thereto) and if all Securities Outstanding under the Indenture shall not have become immediately due and payable following an Event of Default under the Indenture, the Bonds of this series shall be redeemed by the Company, in whole, at a redemption price equal to 100% of the principal amount thereof plus accrued interest from the Initial Interest Accrual Date to the date of redemption upon receipt by the Company and the Trustee of a written demand for such redemption (a “Redemption Demand”) executed and delivered by the Revenue Bond Trustee specified above and stating (a) that such Revenue Bonds have become immediately due and payable due to the occurrence and continuance of an Event of Default under 

A-2

such Revenue Bond Indenture, (b) that such Event of Default was caused by an event of default under the loan agreement between the Company and such Governmental Issuer that resulted in a default in payment of the principal of or premium, if any, or interest on such Revenue Bonds, or a default in a payment of purchase price with respect thereto, (c) that the redemption of the Bonds of this series is thereby demanded by such Revenue Bond Trustee and (d) the last date to which interest on such Revenue Bonds has been paid in full.

If an Event of Default with respect to the Securities of this series shall occur and be continuing, the principal of this Security may be declared due and payable in the manner and with the effect provided in the Indenture.

Anything herein to the contrary notwithstanding, the obligation of the Company to make any payment of the principal of or interest on the Bonds of this series shall be deemed to be satisfied and discharged to the extent of the corresponding payment (a) made by the Company to the Revenue Bond Trustee specified above pursuant to the Agreement and/or (b) made with moneys on deposit in any fund or account maintained under such Revenue Bond Indenture for the payment of the principal of or interest on the Revenue Bonds.

The Trustee may conclusively presume that the obligation of the Company to pay the principal of and interest on the Securities of this 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 Revenue Bond Trustee specified above, signed by an authorized officer thereof, stating that the principal of and/or interest on the Securities of this series has become due and payable and has not been fully paid, and specifying the amount of funds required to make such payment.

The Trustee may conclusively presume that all statements made in a Redemption Demand are true and correct and, unless advised to the contrary by the Revenue Bond Trustee specified above in a written notice to the Trustee, that no redemption demanded in a Redemption Demand has been rescinded, and shall be entitled to receive, and to conclusively rely on, a written notice from such Revenue Bond Trustee as to the amount of interest accruing on the Securities of this series from time to time.

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security upon compliance with certain conditions set forth in the Indenture.

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of all series affected at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless (a) such Holder shall have previously given the Trustee written notice of a continuing Event of Default; (b) the Holders of 25% in aggregate principal 

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amount of the Outstanding Securities shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity; (c) the Trustee shall not have received from the Holders of a majority in aggregate principal amount of the Outstanding Securities a direction inconsistent with such request; and (d) the Trustee shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

The Securities of this series are issuable only in registered form without coupons, and in denominations of $1,000 and integral multiples thereof.

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder hereof or its attorney duly authorized in writing, and thereupon one or more new Securities of this series, of authorized denominations and of like tenor and aggregate principal amount, shall be issued to the designated transferee or transferees.

As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of the same series, of any authorized denominations, as requested by the Holder surrendering the same, and of like tenor upon surrender of the Security or Securities to be exchanged at the office or agency of the Company for such purpose.

No service or other charge shall be made for any such registration of transfer or exchange.

Anything herein to the contrary notwithstanding, this Security shall not be transferable except to a successor Revenue Bond Trustee under the Revenue Bond Indenture specified above.

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the absolute owner hereof for all purposes (subject to Sections 305 and 307 of the Indenture), whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

The Indenture and this Security shall be governed by and construed in accordance with the laws of the State of New York (including, without limitation, Section 5-1401 of the New York General Obligations Law or any successor to such statute), except to the extent that the Trust Indenture Act shall be applicable and except to the extent that the law of any other jurisdiction shall mandatorily govern.

As used herein, “Business Day,” means any day, other than a Saturday or Sunday, that is not a day on which banking institutions or trust companies in The City of New York, New York, or other city in which a paying agent for this Security is located, are generally authorized or required by law, regulation or executive order to remain closed.  All other terms used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture.

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As provided in the Indenture, no recourse shall be had for the payment of the principal of or premium, if any, or interest on any Securities, or any part thereof, or for any claim based thereon or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any obligation, covenant or agreement under the Indenture, against, and no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, member, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture and all the Securities are solely corporate obligations and that any such personal liability is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities.

Unless the certificate of authentication hereon has been executed by the Trustee referred to herein by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

Date of Security: 

	
			
	 
	KENTUCKY UTILITIES COMPANY

	 
	 
	 

	 
	 
	 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	 
	 
	 

	 
	 
	 

	 
	 
	Name:

	 
	 
	Title:

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ASSIGNMENT FORM

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

[please insert social security or other identifying number of assignee]

[please print or typewrite name and address of assignee]

the within Security of KENTUCKY UTILITIES COMPANY and does hereby irrevocably constitute and appoint                                          , Attorney, to transfer said Security on the books of the within‐mentioned Company, with full power of substitution in the premises.

Dated:     

[signature of registered holder]

Notice:  The signature to this assignment must correspond with the name as written upon the face of the Security in every particular without alteration or enlargement or any change whatsoever.

                                                                     

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