Document:

Exhibit 4(c)

 

OFFICERS’ CERTIFICATE

(Under Section 301 of the Indenture of

PPL Capital Funding, Inc. and PPL Corporation)

The undersigned Tadd J. Henninger, Assistant
Treasurer of PPL CAPITAL FUNDING, INC. (formerly known as PP&L Capital Funding, Inc.) (the “Company”), in
accordance with Section 301 of the Indenture, dated as of November 1, 1997, as heretofore supplemented (the “Indenture”,
capitalized terms used herein and not defined herein having the meanings specified in the Indenture), among the Company, PPL
CORPORATION (formerly known as PP&L Resources, Inc.) (the “Guarantor”), and The Bank of New York Mellon (as
successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as Trustee (the “Trustee”), does
hereby establish for the series of Securities established in Supplemental Indenture No. 15, dated as of May 17, 2016 (the
“Supplemental Indenture”), the following terms and characteristics (the lettered clauses set forth below corresponding
to the lettered clauses of Section 301 of the Indenture), and the undersigned Tadd J. Henninger, Assistant Treasurer of the Guarantor,
does hereby approve of such terms and characteristics on behalf of the Guarantor:

 

(a)the title of the Securities of such series shall
be “3.100% Senior Notes due 2026” (the “Notes”);

(b)the aggregate principal amount of Notes which
may be authenticated and delivered under the Indenture shall initially be limited to $650,000,000 on the date hereof, but may be
increased without limit as contemplated in Section 301(b) and the last paragraph of Section 301 of the Indenture, provided that
any such additional Notes either shall be fungible with the original Notes for federal income tax purposes or shall be issued under
a different CUSIP;

    	 

    	 

    

(c)interest on the Notes shall be payable as provided
in the form of Note attached hereto and hereby authorized and approved;

(d)the date or dates on which the principal of
the Notes shall be payable shall be as provided in the form of Note attached hereto and hereby authorized and approved;

(e)the Notes shall bear interest as provided in
the form of Note attached hereto and hereby authorized and approved, and the Interest Payment Dates and Regular Record Dates shall
be such dates as are specified in such form;

(f)the Corporate Trust Office of the Trustee in
the United States (currently located at 101 Barclays Street, Floor 7E, New York, New York, 10286) shall be the office or agency
of the Company at which the principal of, and premium, if any, and interest on the Notes shall be payable, at which registration
of transfer and exchange of Notes may be effected and at which notices and demands to or upon the Company or the Guarantor in respect
of the Notes and the Indenture may be served; provided, however, that the Company and the Guarantor each reserve the right to change,
by one or more Officer’s Certificates supplemental to this Officers’ Certificate, any such office or agency; and provided,
further, that the Company and the Guarantor each reserve the right to designate, by one or more Officer’s Certificates supplemental
to this Officers’ Certificate, its principal office in Allentown, Pennsylvania or the office of the Guarantor or the Guarantor’s
subsidiary, PPL Electric Utilities Corporation in Allentown, Pennsylvania, as any such office or agency; the Trustee shall be the
initial Security Registrar and Paying Agent for the Notes; provided, that the Company and the Guarantor each reserve the right,
by one or more Officer’s Certificates supplemental to this Officers’ Certificate, to designate a different Security
Registrar or a different or additional Paying Agent (which in each case, may be the Company, the Guarantor or any Affiliate of
either of them) and to remove and replace any Security Registrar or Paying Agent;

(g)the Notes shall be redeemable, in whole or in
part, at the option of the Company as and to the extent provided in the form of Note attached hereto and hereby authorized and
approved; with respect to any redemption of the Notes prior to February 15, 2026, notwithstanding Section 404 of the Indenture,
the notice of any such redemption need not set forth the Redemption Price but only the manner of calculation thereof; the Company
shall give the Trustee notice of the Redemption Price for any such redemption promptly after the calculation thereof and the Trustee
shall not be responsible for any such calculation;

(h)[not applicable];

    	 

    	 

    

(i)the Notes shall be issued in denominations of
$2,000 or any amount in excess thereof that is an integral multiple of $1,000, unless otherwise authorized by the Company and the
Guarantor;

(j)[not applicable];

(k)[not applicable];

(l)[not applicable];

(m)[not applicable];

(n)[not applicable];

(o)reference is hereby made to the provisions of
Supplemental Indenture No. 15 for certain covenants of the Company and the Guarantor for the benefit of the Holders of the Notes;

(p)[not applicable];

(q)the only obligations or instruments which shall
be considered Eligible Obligations in respect of the Notes shall be Government Obligations; and the provisions of Section 701 and
702 of the Indenture and Section 2 of Article One of the Supplemental Indenture shall apply to the Notes;

(r)the Notes may be issued in global form (the
“Global Notes”) and the depositary for the Global Notes shall initially be The Depository Trust Company (“DTC”);
provided, that the Company reserves the right to provide for another depositary, registered as a clearing agency under the
Exchange Act, to act as depositary for the Global Notes (DTC and any such successor depositary, the “Depositary”);
beneficial interests in Notes issued in global form may not be exchanged in whole or in part for individual certificated Notes
in definitive form, and no transfer of a Global Note in whole or in part may be registered in the name of any Person other than
the Depositary or its nominee except that if the Depositary (A) has notified the Company that it is unwilling or unable to continue
as depositary for the Global Notes or (B) has ceased to be a clearing agency registered under the Exchange Act and, in either case,
a successor depositary is not appointed by the Company within 90 days after such notice or cessation, the Company shall execute,
and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Notes, shall authenticate and
deliver Notes in definitive certificated form in an aggregate principal amount equal to the principal amount of the Global Note
representing such Notes in exchange for such Global Note, such definitive Notes to be registered in the names provided by the Depositary;
each Global Note (i) shall represent and shall be denominated in an amount equal to the aggregate principal amount of the

    	 

    	 

    

outstanding Notes to be represented by such Global
Note, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the Depositary,
its nominee, any custodian for the Depositary or otherwise pursuant to the Depositary’s instruction and (iv) shall bear a
legend restricting the transfer of such Global Note to any person other than the Depositary or its nominee; none of the Company,
the Guarantor, the Trustee, any Paying Agent or any Authenticating Agent shall have any responsibility or liability for any aspect
of the records relating to, or payments made on account of, beneficial ownership interests in a Global Note or for maintaining,
supervising or reviewing any records relating to such beneficial ownership interests;

(s)[not applicable];

(t)reference is made to clause (r) above; no service
charge shall be made for the registration of transfer or exchange of Notes; provided, however, that the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in connection with the exchange or transfer;

(u)[not applicable];

(v)the Notes shall be entitled to the benefits
of Article Fourteen of the Indenture, and the Guarantees to be endorsed on the Notes shall be substantially in the form established
in the Supplemental Indenture;

(w)except as otherwise determined by the proper
officers of the Company and communicated to the Trustee in a Company Order or as established in one or more Officer’s Certificates
supplemental to this Officers’ Certificate, the Notes shall be substantially in the form of Note attached hereto, which form
is hereby authorized and approved and shall have such further terms as are set forth in such form.

 

    	 

    	 

    

IN WITNESS WHEREOF, I, as Assistant Treasurer
of the Company and Assistant Treasurer of the Guarantor (and not in my individual capacity), have hereunto signed my name this
17th day of May, 2016.

	 	 	/s/ Tadd J. Henninger
	 	 	Name: Tadd J. Henninger
	 	 	Title:   Assistant Treasurer
    of  
	 	 	     PPL CAPITAL FUNDING, INC.

 

 

 

 

	 	 	/s/ Tadd J. Henninger
	 	 	Name: Tadd J. Henninger
	 	 	Title:   Assistant Treasurer of  
	 	 	     PPL CORPORATION

 

 

 

 

 

 

 

[Officers’ Certificate Pursuant to Indenture
Section 301]

    	 

    	 

    

Form of Note

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”) TO THE ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE TO BE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

 

 

PPL CAPITAL FUNDING, INC.

3.100% Senior Note due 2026

Fully and Unconditionally Guaranteed
as to Payment

of Principal, Premium, if any, and Interest by

PPL CORPORATION

	Original Issue Date:	May 17, 2016
	Stated Maturity:	May 15, 2026
	Interest Rate:	3.100%
	Interest Payment Dates:	May 15 and November 15
	First Interest Payment Date:	November 15, 2016
	Regular Record Dates:	May 1 and November 1

 

This Security is not a Discount Security within

the meaning of the within-mentioned Indenture

 

 

 

	Principal Amount	No. [•]
	[•]	CUSIP [•]

 

    	 

    	 

    

PPL CAPITAL FUNDING, INC., a corporation
duly organized and existing under the laws of the State of Delaware (herein called the “Company,” which term includes
any successor under the Indenture referred to below), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of [•] DOLLARS ($[•]) on the Stated Maturity specified above, and to pay interest on said
principal sum from the Original Issue Date specified above or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually in arrears on the Interest Payment Dates specified above, commencing November 15,
2016 and at Maturity, at the Interest Rate per annum specified above, until the principal hereof is paid or duly provided for.
The interest so payable, and paid or duly provided for, on any Interest Payment Date shall, as provided in the Indenture, be paid
to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date specified above (whether or not a Business Day (as hereinafter defined)) next preceding such Interest Payment
Date. Notwithstanding the foregoing, interest payable at Maturity shall be paid to the Person to whom principal shall be paid.
Except as otherwise provided in the Indenture, any such interest not so paid or duly provided for shall forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice of which shall be given to Holders of Securities of this series not less than 10 days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed if deemed practicable by the Trustee, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture. Interest on this Security shall be computed on the basis of a 360-day
year consisting of twelve 30-day months, and with respect to any period less than a full calendar month, on the basis of actual
days elapsed during such period.

Payment of the principal of this Security
and premium, if any, and interest hereon due at Maturity 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. Payment of interest, on this Security (other than interest due 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 except that (a)
if such Person shall be a securities depositary, such payment may be made by such other means in lieu of check as shall be agreed
upon by the Company, the Trustee or other Paying Agent and such Person and (b) if such Person is a Holder of $10,000,000 or more
in aggregate principal amount of Securities of this series such payment may be in immediately available funds by wire transfer
to such account as may have been designated in writing by the Person entitled thereto as set forth herein in time for the Paying
Agent to make such payments in accordance with its normal procedures. Any such designation for wire transfer purposes shall be
made by filing the appropriate information with the Trustee at

    	 

    	 

    

its Corporate Trust Office in The City of New York not less
than fifteen calendar days prior to the applicable payment date and, unless revoked by written notice to the Trustee received on
or prior to the Regular Record Date immediately preceding the applicable Interest Payment Date, shall remain in effect with respect
to any further interest payments (other than interest payments due at Maturity) with respect to this Security payable to such Holder.
Payment of the principal of, and premium, if any, and interest on this Security, as aforesaid, shall be made in such coin or currency
of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

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 November 1, 1997 (such Indenture as originally executed and delivered and as supplemented or amended
from time to time thereafter, together with any constituent instruments establishing the terms of particular Securities, being
herein called the “Indenture”), among the Company (formerly known as PP&L Capital Funding, Inc.), PPL Corporation
(formerly known as PP&L Resources, Inc.) (herein called the “Guarantor,” which term includes any successor under
the Indenture) and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan
Bank)), as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to
which Indenture, all indentures supplemental thereto and the Officers’ Certificate filed with the Trustee on May 17, 2016,
establishing certain terms of the series designated on the face hereof (herein called the “Officers’ Certificate”)
reference is hereby made for a description of the respective rights, limitations of rights, duties and immunities of the Company,
the Guarantor, the Trustee and the Holders of the Securities thereunder and of the terms and conditions upon which the Securities
are, and are to be, authenticated and delivered. The acceptance of this Security shall be deemed to constitute the consent and
agreement by the Holder hereof to all of the terms and provisions of the Indenture. This Security is one of the series designated
above.

If any Interest Payment Date, any Redemption
Date or the Stated Maturity shall not be a Business Day, payment of the amounts due on this Security on such date shall be made
on the next succeeding Business Day, and, if such payment is made or duly provided for on such next succeeding Business Day, no
interest shall accrue on such amounts for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity,
as the case may be, to such Business Day.

The Company may, at its option, redeem
this Security, in whole at any time or in part from time to time. If the Company redeems this Security before February 15, 2026
(the date that is three months prior to the Stated Maturity), this Security will be redeemed by the Company at a Redemption Price
equal to the greater of:

    	 

    	 

    

(1) 100% of the principal amount of this
Security to be so redeemed; and

(2) as determined by the Quotation Agent,
the sum of the present values of the remaining scheduled payments of principal and interest on this Security to be so redeemed
(not including any portion of such payments of interest accrued to the date of redemption) discounted to the Redemption Date on
a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 25 basis points;

plus, in either of the above cases, accrued
and unpaid interest on the principal amount being redeemed to, but not including, the Redemption Date.

If the Company redeems this Security
on or after February 15, 2026, this Security will be redeemed by the Company at a Redemption Price equal to 100% of the principal
amount of this Security to be so redeemed, plus accrued and unpaid interest on the principal amount being redeemed to, but not
including, the Redemption Date.

For purposes of calculating the Redemption
Price, the following terms will have the meanings set forth below:

“Adjusted Treasury Rate”
means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to
the Comparable Treasury Price for that Redemption Date.

“Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable
to the remaining term of this Security to the Stated Maturity that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term
of this Security.

“Comparable Treasury Price”
means, with respect to any Redemption Date:

(1) the average of five Reference Treasury
Dealer Quotations for that Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations; or

(2) if the Quotation Agent obtains fewer
than five Reference Treasury Dealer Quotations, the average of all of those quotations received.

“Quotation Agent”
means one of the Reference Treasury Dealers appointed by the Company.

“Reference Treasury Dealer”
means:

    	 

    	 

    

(1) each of Barclays Capital Inc., Credit
Suisse (USA) LLC, Wells Fargo Securities, LLC and a Primary Treasury Dealer (as defined below) selected by Mitsubishi UFJ Securities
(USA), Inc., and their respective successors, unless any of them ceases to be a primary U.S. government securities dealer in the
United States (a “Primary Treasury Dealer”), in which case the Company will substitute another Primary Treasury Dealer;
and

(2) any other Primary Treasury Dealer
selected by the Company.

“Reference Treasury Dealer Quotations”
means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Quotation Agent,
of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount),
as provided to the Quotation Agent by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day
preceding that Redemption Date.

Notice of redemption shall be given by
mail (or, in the case of Global Securities, in accordance with DTC’s applicable policies and procedures) to Holders of Securities
of this series, not less than 10 days nor more than 60 days prior to the date fixed for redemption, all as provided in the Indenture.
As provided in the Indenture, notice of redemption at the election of the Company as aforesaid may state that such redemption shall
be conditional upon the receipt by the applicable Paying Agent or Agents of money sufficient to pay the principal of, and premium,
if any, and interest on this Security on or prior to the date fixed for such redemption; a notice of redemption so conditioned
shall be of no force or effect if such money is not so received and, in such event, the Company shall not be required to redeem
this Security.

In the event of redemption of this Security
in part only, a new Security or Securities of this series, of like tenor, representing the unredeemed portion hereof shall be issued
in the name of the Holder hereof upon the cancellation hereof.

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.

The Indenture permits, with certain exceptions
as therein provided, the Trustee to enter into one or more supplemental indentures for the purpose of adding any provisions to,
or changing in any manner or eliminating any of the provisions of, the Indenture with the consent of the Holders of not less than
a majority in aggregate principal amount of the Securities of all series then Outstanding under the Indenture, considered as one
class; provided, however, that if there shall be Securities of more than one series Outstanding under the Indenture
and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less
than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities
of all series so directly affected, considered as one class,

    	 

    	 

    

shall be required; and provided, further, that
if the Securities of any series shall have been issued in more than one Tranche and if the proposed supplemental indenture shall
directly affect the rights of the Holders of Securities of one or more, but less than all, of such Tranches, then the consent only
of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all Tranches so directly affected,
considered as one class, shall be required; and provided, further, that the Indenture permits the Trustee to enter
into one or more supplemental indentures for limited purposes without the consent of any Holders of Securities. The Indenture also
contains provisions permitting the Holders of a majority in principal amount of the Securities then Outstanding, on behalf of the
Holders of all Securities, 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 therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

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 premium, if any, and interest on this Security at the times, place and rate, in the
coin or currency, and in the manner, herein prescribed.

As provided in the Indenture and subject
to certain limitations therein and herein set forth, this Security or any portion of the principal amount hereof shall be deemed
to have been paid for all purposes of the Indenture and to be no longer Outstanding thereunder, and, at the election of the Company,
the Company’s entire indebtedness in respect thereof shall be satisfied and discharged, if there has been irrevocably deposited
with the Trustee or any Paying Agent (other than the Company or the Guarantor), in trust, money in an amount which shall be sufficient
and/or Eligible Obligations, the principal of and interest on which when due, without any regard to reinvestment thereof, shall
provide moneys which, together with moneys so deposited, shall be sufficient to pay when due the principal of, and premium, if
any, and interest on this Security when due.

The Indenture contains terms, provisions
and conditions relating to the consolidation or merger of the Company or the Guarantor with or into, and the conveyance or other
transfer, or lease, of assets to, another Person, to the assumption by such other Person, in certain circumstances, of all of the
obligations of the Company or the Guarantor under the Indenture and on the Securities (or the Guarantees endorsed thereon, as the
case may be) and to the release and discharge of the Company or the Guarantor, as the case may be, in certain circumstances, from
such obligations.

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 of The Bank of New York Mellon in New York, New York or such other office or agency as may be designated by the Company
from time to time, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and
the Security Registrar duly executed by, the Holder hereof or his 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.

The Securities of this series are issuable
only as registered Securities, without coupons, and in denominations of $2,000 and integral multiples of $1,000 in excess thereof.
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 and Tranche, 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
of The Bank of New York Mellon in New York, New York or such other office or agency as may be designated by the Company from time
to time.

The Company shall not be required to
execute and the Security Registrar shall not be required to register the transfer of or exchange of (a) Securities of this series
during a period of 15 days immediately preceding the date notice is given identifying the serial numbers of the Securities of this
series called for redemption or (b) any Security so selected for redemption in whole or in part, except the unredeemed portion
of any Security being redeemed in part.

No service charge shall be made for any
such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

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 the Securities 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.

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 are generally
authorized or required by law, regulation or executive order to close in The City of New York or other city in which is located
any Paying Agent for the

    	 

    	 

    

Securities of this series. All other terms used in this Security
which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

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, any Guarantees 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, officer or director, as such, past, present or future of the Company or the Guarantor or of
any predecessor or successor of either of them (either directly or through the Company or the Guarantor, as the case may be, or
a predecessor or successor of either of them), 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 this
Security and the Guarantee endorsed hereon 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
this Security and such Guarantee.

Unless the certificate of authentication
hereon has been executed by the Trustee or an Authenticating Agent 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.

Dated: May 17, 2016

	 	PPL CAPITAL FUNDING, INC.
	 	By:	 
	 	 	
        Name: Tadd J. Henninger

        Title: Assistant Treasurer

 

 

	Attested:	 
	By:	 	 
	 	
        Name: Elizabeth Stevens Duane

        Title: Secretary
	 

 

 

 

 

 

[Global
Note]

    	 

    	 

    

GUARANTEE

PPL Corporation,
a corporation organized under the laws of the Commonwealth of Pennsylvania (the “Guarantor”, which term includes any
successor under the Indenture (the “Indenture”) referred to in the Security upon which this Guarantee is endorsed),
for value received, hereby fully and unconditionally guarantees to the Holder of the Security upon which this Guarantee is endorsed,
the due and punctual payment of the principal of, and premium, if any, and interest on such Security when and as the same shall
become due and payable, whether at the Stated Maturity, by declaration of acceleration, call for redemption, or otherwise, in accordance
with the terms of such Security and of the Indenture. In case of the failure of PPL Capital Funding, Inc., a corporation organized
under the laws of the State of Delaware (the “Company,” which term includes any successor under the Indenture), punctually
to make any such payment, the Guarantor hereby agrees to cause such payment to be made punctually when and as the same shall become
due and payable, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise, and as if
such payment were made by the Company.

The Guarantor
hereby agrees that its obligations hereunder shall be absolute and unconditional irrespective of, and shall be unaffected by, any
invalidity, irregularity or unenforceability of such Security or the Indenture, any failure to enforce the provisions of such Security
or the Indenture, or any waiver, modification or indulgence granted to the Company with respect thereto, by the Holder of such
Security or the Trustee or any other circumstance which may otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor; provided, however, that notwithstanding the foregoing, no such waiver, modification or indulgence shall, without
the consent of the Guarantor, increase the principal amount of such Security, or increase the interest rate thereon, or change
any redemption provisions thereof (including any change to increase any premium payable upon redemption thereof) or change the
Stated Maturity thereof.

The Guarantor
hereby waives the benefits of diligence, presentment, demand for payment, any requirement that the Trustee or the Holder of such
Security exhaust any right or take any action against the Company or any other Person, filing of claims with a court in the event
of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest or notice with
respect to such Security or the

    	 

    	 

    

indebtedness evidenced thereby and
all demands whatsoever, and covenants that this Guarantee will not be discharged in respect of such Security except by complete
performance of the obligations contained in such Security and in this Guarantee. This Guarantee shall constitute a guaranty of
payment and not of collection. The Guarantor hereby agrees that, in the event of a default in payment of principal of, or premium,
if any, or interest on such Security, whether at its Stated Maturity, by declaration of acceleration, call for redemption, or otherwise,
legal proceedings may be instituted by the Trustee on behalf of, or by, the Holder of such Security, subject to the terms and conditions
set forth in the Indenture, directly against the Guarantor to enforce this Guarantee without first proceeding against the Company.

The obligations
of the Guarantor hereunder with respect to such Security shall be continuing and irrevocable until the date upon which the entire
principal of, and premium, if any, and interest on such Security has been, or has been deemed pursuant to the provisions of Article
Seven of the Indenture to have been, paid in full or otherwise discharged.

The Guarantor
shall be subrogated to all rights of the Holder of such Security upon which this Guarantee is endorsed against the Company in respect
of any amounts paid by the Guarantor on account of such Security pursuant to the provisions of this Guarantee or the Indenture;
provided, however, that the Guarantor shall not be entitled to enforce or to receive any payments arising out of, or based upon,
such right of subrogation until the principal of, and premium, if any, and interest, if any, on all Securities issued under the
Indenture shall have been paid in full.

This Guarantee
shall remain in full force and effect and continue notwithstanding any petition filed by or against the Company for liquidation
or reorganization, the Company becoming insolvent or making an assignment for the benefit of creditors or a receiver or trustee
being appointed for all or any significant part of the Company’s assets, and shall, to the fullest extent permitted by law,
continue to be effective or reinstated, as the case may be, if at any time payment of the Security upon which this Guarantee is
endorsed, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by the Holder
of such Security, whether as a “voidable preference,” “fraudulent transfer,” or otherwise, all as though
such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored
or returned on such Security, such Security shall, to the fullest extent

    	 

    	 

    

permitted by law, be reinstated
and deemed paid only by such amount paid and not so rescinded, reduced, restored or returned.

This Guarantee
shall not be valid or obligatory for any purpose until the certificate of authentication of the Security upon which this Guarantee
is endorsed shall have been manually executed by or on behalf of the Trustee under the Indenture.

All terms used
in this Guarantee which are defined in the Indenture shall have the meanings assigned to them in such Indenture.

This Guarantee shall be deemed to be
a contract made under the laws of the State of New York, and for all purposes 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 the Trust Indenture Act shall be applicable.

    	 

    	 

    

IN WITNESS WHEREOF, the Guarantor has caused this Guarantee
to be duly executed.

Dated: May 17, 2016

	 	PPL CORPORATION
	 	By:	 
	 	 	
        Name: Tadd J. Henninger

        Title: Assistant Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Global Note]

    	 

    	 

    

CERTIFICATE OF AUTHENTICATION

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

Dated: May 17, 2016

	 	THE BANK OF NEW YORK MELLON,

as Trustee
	 	By:	 
	 	 	Authorized Signatory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Global Note]

    	 

    	 

    

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 PPL CAPITAL FUNDING, INC. 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: __________

 

 

 

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.Exhibit
10.1 

 

MORGAN STANLEY

2007 EQUITY INCENTIVE COMPENSATION PLAN

(Amended and Restated as of March 24, 2016)

 

1. Purpose. The primary purposes of
the Morgan Stanley 2007 Equity Incentive Compensation Plan are to attract, retain and motivate employees, to compensate them for
their contributions to the growth and profits of the Company and to encourage them to own Morgan Stanley Stock.

 

2. Definitions. Except as otherwise
provided in an applicable Award Document, the following capitalized terms shall have the meanings indicated below for purposes
of the Plan and any Award:

 

“Administrator”
means the individual or individuals to whom the Committee delegates authority under the Plan in accordance with Section 5(b).

 

“Award” means any
award of Restricted Stock, Stock Units, Options, SARs, Qualifying Performance Awards or Other Awards (or any combination thereof)
made under and pursuant to the terms of the Plan.

 

“Award Date” means
the date specified in a Participant’s Award Document as the grant date of the Award.

 

“Award Document”
means a written document (including in electronic form) that sets forth the terms and conditions of an Award. Award Documents shall
be authorized in accordance with Section 13(e).

 

“Board” means the
Board of Directors of Morgan Stanley.

 

“Code” means the
Internal Revenue Code of 1986, as amended, and the applicable rulings, regulations and guidance thereunder.

 

“Committee” means
the Compensation, Management Development and Succession Committee of the Board, any successor committee thereto or any other committee
of the Board appointed by the Board to administer the Plan or to have authority with respect to the Plan, or any subcommittee appointed
by such Committee. With respect to any provision regarding the grant of Qualifying Performance Awards, the Committee shall consist
solely of at least two “outside directors” as defined under Section 162(m) of the Code.

 

“Company” means
Morgan Stanley and all of its Subsidiaries.

 

“Eligible Individuals”
means the individuals described in Section 6 who are eligible for Awards.

 

“Employee Trust”
means any trust established or maintained by the Company in connection with an employee benefit plan (including the Plan) under
which current and former employees of the Company constitute the principal beneficiaries.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the applicable rulings and regulations thereunder.

 

“Fair Market Value”
means, with respect to a Share, the fair market value thereof as of the relevant date of determination, as determined in accordance
with a valuation methodology approved by the Committee.

 

“Incentive Stock Option”
means an Option that is intended to qualify for special federal income tax treatment pursuant to Sections 421 and 422 of
the Code, as now constituted or subsequently amended, or pursuant to a successor provision of the Code, and which is so designated
in the applicable Award Document.

 

“Morgan Stanley”
means Morgan Stanley, a Delaware corporation.

 

“Option” or “Stock
Option” means a right, granted to a Participant pursuant to Section 9, to purchase one Share.

 

“Other Award” means
any other form of award authorized under Section 12, including any such Other Award the receipt of which was elected pursuant to
Section 13(a).

 

    

    

    

 

“Participant” means
an individual to whom an Award has been made.

 

“Plan” means the
Morgan Stanley 2007 Equity Incentive Compensation Plan, as amended from time to time in accordance with Section 16(e).

 

“Qualifying Performance Award”
means an Award granted pursuant Section 11.

 

“Restricted Stock”
means Shares granted or sold to a Participant pursuant to Section 7.

 

“SAR” means a right,
granted to a Participant pursuant to Section 10, to receive upon exercise of such right, in cash or Shares (or a combination thereof)
as authorized by the Committee, an amount equal to the increase in the Fair Market Value of one Share over a specified exercise
price.

 

“Section 162(m) Participant”
means, for a given performance period, any individual designated by the Committee by not later than 90 days following the start
of such performance period (or such other time as may be required or permitted by Section 162(m) of the Code) as an individual
whose compensation for such performance period may be subject to the limit on deductible compensation imposed by Section 162(m)
of the Code.

 

“Section 162(m) Performance Goals”
means any performance formula that was approved by Morgan Stanley’s stockholders and the performance objectives established
by the Committee in accordance with Section 11 or any other performance goals approved by Morgan Stanley’s stockholders pursuant
to Section 162(m) of the Code.

 

“Section 409A” means
Section 409A of the Code.

 

“Shares” means shares
of Stock.

 

“Stock” means the
common stock, par value $0.01 per share, of Morgan Stanley.

 

“Stock Unit” means
a right, granted to a Participant pursuant to Section 8, to receive one Share or an amount in cash equal to the Fair Market Value
of one Share, as authorized by the Committee.

 

“Subsidiary” means
(i) a corporation or other entity with respect to which Morgan Stanley, directly or indirectly, has the power, whether through
the ownership of voting securities, by contract or otherwise, to elect at least a majority of the members of such corporation’s
board of directors or analogous governing body, or (ii) any other corporation or other entity in which Morgan Stanley, directly
or indirectly, has an equity or similar interest and which the Committee designates as a Subsidiary for purposes of the Plan.

 

“Substitute Awards”
means Awards granted upon assumption of, or in substitution for, outstanding awards previously granted by, or held by employees
of, a company or other entity or business acquired (directly or indirectly) by Morgan Stanley or with which Morgan Stanley combines.

 

3. Effective Date and Term of Plan. 

 

(a) Effective Date. The Plan shall
become effective upon its adoption by the Board, subject to its approval by Morgan Stanley’s stockholders. Prior to such
stockholder approval, the Committee may grant Awards conditioned on stockholder approval, but no Shares may be issued or delivered
pursuant to any such Award until Morgan Stanley’s stockholders have approved the Plan. If such stockholder approval is not
obtained at or before the first annual meeting of stockholders to occur after the adoption of the Plan by the Board, the Plan and
any Awards made thereunder shall terminate ab initio and be of no further force and effect.

 

(b) Term of Plan. No Awards may
be made under the Plan after May 15, 2017.

 

4. Stock Subject to Plan.

 

(a) Overall Plan Limit. The total number
of Shares that may be delivered pursuant to Awards shall be 323,000,000 as calculated pursuant to Section 4(c). The
number of Shares available for delivery under the Plan shall be adjusted as provided in Section 4(b). Shares delivered under the
Plan may be authorized but unissued shares or treasury shares that Morgan Stanley acquires in the open market, in private transactions
or otherwise.

 

    

    

    

 

(b)
Adjustments for Certain Transactions. In the event of a stock split, reverse stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, extraordinary dividend or distribution, split-up, spin-off, combination, reclassification
or exchange of shares, warrants or rights offering to purchase Stock at a price substantially below Fair Market Value or other
change in corporate structure or any other event that affects Morgan Stanley’s capitalization, the Committee shall equitably
adjust (i) the number and kind of shares authorized for delivery under the Plan, including the maximum number of Shares available
for Awards of Options or SARs as provided in Section 4(d), the maximum number of Incentive Stock Options as provided in Section
4(e) and the individual Qualifying Performance Award maximum under Section 11, and (ii) the number and kind of shares subject to
any outstanding Award and the exercise or purchase price per share, if any, under any outstanding Award. In the discretion of the
Committee, such an adjustment may take the form of a cash payment to a Participant. The Committee shall make all such adjustments,
and its determination as to what adjustments shall be made, and the extent thereof, shall be final. Unless the Committee determines
otherwise, such adjusted Awards shall be subject to the same vesting schedule and restrictions to which the underlying Award is
subject.

 

(c) Calculation of Shares Available for
Delivery. In calculating the number of Shares that remain available for delivery pursuant to Awards at any time, the following
rules shall apply (subject to the limitation in Section 4(e)):

 

1. The number of Shares available for delivery
shall be reduced by the number of Shares subject to an Award and, in the case of an Award that is not denominated in Shares, the
number of Shares actually delivered upon payment or settlement of the Award.

 

2. The number of Shares tendered (by actual
delivery or attestation) or withheld from an Award to pay the exercise price of the Award or to satisfy any tax withholding obligation
or liability of a Participant shall be added back to the number of Shares available for delivery pursuant to Awards.

 

3. The number of Shares in respect of any
portion of an Award that is canceled or that expires without having been paid or settled by the Company shall be added back to
the number of Shares available for delivery pursuant to Awards to the extent such Shares were counted against the Shares available
for delivery pursuant to clause (1).

 

4. If an Award is settled or paid by the Company
in whole or in part through the delivery of consideration other than Shares, or by delivery of fewer than the full number of Shares
that was counted against the Shares available for delivery pursuant to clause (1), there shall be added back to the number of Shares
available for delivery pursuant to Awards the excess of the number of Shares that had been so counted over the number of Shares
(if any) actually delivered upon payment or settlement of the Award.

 

5. Any Shares underlying Substitute Awards
shall not be counted against the number of Shares available for delivery pursuant to Awards and shall not be subject to Section
4(d).

 

(d) Individual Limit on Options and SARs. The
maximum number of Shares that may be subject to Options or SARs granted to or elected by a Participant in any fiscal year shall
be 2,000,000 Shares. The limitation imposed by this Section 4(d) shall not include Options or SARs granted to a Participant pursuant
to Section 162(m) Performance Goals.

 

(e) ISO Limit. The full number
of Shares available for delivery under the Plan may be delivered pursuant to Incentive Stock Options, except that in calculating
the number of Shares that remain available for Awards of Incentive Stock Options the rules set forth in Section 4(c) shall not
apply to the extent not permitted by Section 422 of the Code.

 

5. Administration.

 

(a) Committee Authority Generally.
The Committee shall administer the Plan and shall have full power and authority to make all determinations under the Plan, subject
to the express provisions hereof, including without limitation: (i) to select Participants from among the Eligible Individuals;
(ii) to make Awards; (iii) to determine the number of Shares subject to each Award or the cash amount payable in connection with
an Award; (iv) to establish the terms and conditions of each Award, including, without limitation, those related to vesting, cancellation,
payment, exercisability, and the effect, if any, of certain events on a Participant’s Awards, such as the Participant’s
termination of employment with the Company; (v) to specify and approve the provisions of the Award Documents delivered to Participants
in connection with their Awards; (vi) to construe and interpret any Award Document delivered under the Plan; (vii) to prescribe,
amend and rescind rules and procedures relating to the Plan; (viii) to make all determinations necessary or advisable in administering
the Plan and Awards, including, without limitation, determinations as to whether (and if so as of what date) a Participant has
commenced, or has experienced a termination of, employment; provided, however, that to the extent full or partial payment of any
Award that constitutes a deferral of compensation subject to Section 409A is made upon or as a result of a Participant’s
termination of employment, the Participant will be considered to have experienced a termination of employment if, and only if,
the Participant has experienced a separation from service with the Participant’s employer for purposes of Section 409A; (ix)
to vary the terms of Awards to take account of securities law and other legal or regulatory requirements of jurisdictions in which
Participants work or reside or to procure favorable tax treatment for

 

    

    

    

 

Participants; and (x) to formulate such procedures as it
considers to be necessary or advisable for the administration of the Plan.

 

(b) Delegation. To the extent not prohibited
by applicable laws or rules of the New York Stock Exchange or, in the case of Qualifying Performance Awards, Section 162(m) of
the Code, the Committee may, from time to time, delegate some or all of its authority under the Plan to one or more Administrators
consisting of one or more members of the Committee as a subcommittee or subcommittees thereof or of one or more members of the
Board who are not members of the Committee or one or more officers of the Company (or of any combination of such persons). Any
such delegation shall be subject to the restrictions and limits that the Committee specifies at the time of such delegation or
thereafter. The Committee may at any time rescind all or part of the authority delegated to an Administrator or appoint a new Administrator.
At all times, an Administrator appointed under this Section 5(b) shall serve in such capacity at the pleasure of the Committee.
Any action undertaken by an Administrator in accordance with the Committee’s delegation of authority shall have the same
force and effect as if undertaken directly by the Committee, and any reference in the Plan to the Committee shall, to the extent
consistent with the terms and limitations of such delegation, be deemed to include a reference to an Administrator.

 

(c) Authority to Construe and Interpret.
The Committee shall have full power and authority, subject to the express provisions hereof, to construe and interpret the Plan.

 

(d) Committee Discretion. All of the
Committee’s determinations in carrying out, administering, construing and interpreting the Plan shall be made or taken in
its sole discretion and shall be final, binding and conclusive for all purposes and upon all persons. In the event of any disagreement
between the Committee and an Administrator, the Committee’s determination on such matter shall be final and binding on all
interested persons, including any Administrator. The Committee’s determinations under the Plan need not be uniform and may
be made by it selectively among persons who receive, or are eligible to receive, Awards under the Plan (whether or not such persons
are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things,
to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Documents, as to the persons
receiving Awards under the Plan, and the terms and provisions of Awards under the Plan.

 

(e) No Liability. Subject to applicable
law: (i) no member of the Committee or any Administrator shall be liable for anything whatsoever in connection with the exercise
of authority under the Plan or the administration of the Plan except such person’s own willful misconduct; (ii) under no
circumstances shall any member of the Committee or any Administrator be liable for any act or omission of any other member of the
Committee or an Administrator; and (iii) in the performance of its functions with respect to the Plan, the Committee and an Administrator
shall be entitled to rely upon information and advice furnished by the Company’s officers, the Company’s accountants,
the Company’s counsel and any other party the Committee or the Administrator deems necessary, and no member of the Committee
or any Administrator shall be liable for any action taken or not taken in good faith reliance upon any such advice.

 

6. Eligibility. Eligible Individuals
shall include all officers, other employees (including prospective employees) and consultants of, and other persons who perform
services for, the Company, non-employee directors of Subsidiaries and employees and consultants of joint ventures, partnerships
or similar business organizations in which Morgan Stanley or a Subsidiary has an equity or similar interest. Any Award made to
a prospective employee shall be conditioned upon, and effective not earlier than, such person’s becoming an employee. Members
of the Board who are not Company employees will not be eligible to receive Awards under the Plan. An individual’s status
as an Administrator will not affect his or her eligibility to receive Awards under the Plan.

 

7. Restricted Stock. An Award of Restricted
Stock shall be subject to the terms and conditions established by the Committee in connection with the Award and specified in the
applicable Award Document. Restricted Stock may, among other things, be subject to restrictions on transfer, vesting requirements
or cancellation under specified circumstances.

 

8. Stock Units. An Award of Stock Units
shall be subject to the terms and conditions established by the Committee in connection with the Award and specified in the applicable
Award Document. Each Stock Unit awarded to a Participant shall correspond to one Share. Upon satisfaction of the terms and conditions
of the Award, a Stock Unit will be payable, at the discretion of the Committee, in Stock or in cash equal to the Fair Market Value
on the payment date of one Share. As a holder of Stock Units, a Participant shall have only the rights of a general unsecured creditor
of Morgan Stanley. A Participant shall not be a stockholder with respect to the Shares underlying Stock Units unless and until
the Stock Units convert to Shares. Stock Units may, among other things, be subject to restrictions on transfer, vesting requirements
or cancellation under specified circumstances.

 

9. Options.

 

(a) Options Generally. An Award of
Options shall be subject to the terms and conditions established by the Committee in connection with the Award and specified in
the applicable Award Document. The Committee shall establish (or shall authorize the method for establishing) the exercise price
of all Options awarded under the Plan, except that the exercise price of an Option

 

    

    

    

 

shall not be less than 100% of the Fair Market
Value of one Share on the Award Date. Notwithstanding the foregoing, the exercise price of an Option that is a Substitute Award
may be less than the Fair Market Value per Share on the Award Date, provided that such substitution complies with applicable laws
and regulations, including the listing requirements of the New York Stock Exchange and Section 409A or Section 424, as applicable,
of the Code. Upon satisfaction of the conditions to exercisability of the Award, a Participant shall be entitled to exercise the
Options included in the Award and to have delivered, upon Morgan Stanley’s receipt of payment of the exercise price and completion
of any other conditions or procedures specified by Morgan Stanley, the number of Shares in respect of which the Options shall have
been exercised. Options may be either nonqualified stock options or Incentive Stock Options. Options and the Shares acquired upon
exercise of Options may, among other things, be subject to restrictions on transfer, vesting requirements or cancellation under
specified circumstances.

 

(b) Prohibition on Restoration Option and
SAR Grants. Anything in the Plan to the contrary notwithstanding, the terms of an Option or SAR shall not provide that a new
Option or SAR will be granted, automatically and without additional consideration in excess of the exercise price of the underlying
Option or SAR, to a Participant upon exercise of the Option or SAR.

 

(c) Prohibition on Repricing of Options
and SARs. Anything in the Plan to the contrary notwithstanding, the Committee may not reprice any Option or SAR. “Reprice”
means any action that constitutes a “repricing” under the rules of the New York Stock Exchange or, except as otherwise
expressly provided in Section 4(b), any other amendment to an outstanding Option or SAR that has the effect of reducing its exercise
price or any cancellation of an outstanding Option or SAR in exchange for cash or another Award.

 

(d) Payment of Exercise Price. Subject
to the provisions of the applicable Award Document and to the extent authorized by rules and procedures of Morgan Stanley from
time to time, the exercise price of the Option may be paid in cash, by actual delivery or attestation to ownership of freely transferable
Shares already owned by the person exercising the Option, or by such other means as Morgan Stanley may authorize.

 

(e) Maximum Term on Stock Options and SARs.
No Option or SAR shall have an expiration date that is later than the tenth anniversary of the Award Date thereof.

 

10. SARs. An Award of SARs shall be
subject to the terms and conditions established by the Committee in connection with the Award and specified in the applicable Award
Document. The Committee shall establish (or shall authorize the method for establishing) the exercise price of all SARs awarded
under the Plan, except that the exercise price of a SAR shall not be less than 100% of the Fair Market Value of one Share on the
Award Date. Notwithstanding the foregoing, the exercise price of any SAR that is a Substitute Award may be less than the Fair Market
Value of one Share on the Award Date, subject to the same conditions set forth in Section 9(a) for Options that are Substitute
Awards. Upon satisfaction of the conditions to the payment of the Award, each SAR shall entitle a Participant to an amount, if
any, equal to the Fair Market Value of one Share on the date of exercise over the SAR exercise price specified in the applicable
Award Document. At the discretion of the Committee, payments to a Participant upon exercise of an SAR may be made in Shares, cash
or a combination thereof. SARs and the Shares that may be acquired upon exercise of SARs may, among other things, be subject to
restrictions on transfer, vesting requirements or cancellation under specified circumstances.

 

11. Qualifying Performance Awards.

 

(a) The Committee may, in its sole discretion,
grant a Qualifying Performance Award to any Section 162(m) Participant. A Qualifying Performance Award shall be subject to the
terms and conditions established by the Committee in connection with the Award and specified in the applicable Award Document,
but in all events shall be subject to the attainment of Section 162(m) Performance Goals as may be specified by the Committee.
Qualifying Performance Awards may be denominated as a cash amount, number of Shares or other securities of the Company, or a combination
thereof. Subject to the terms of the Plan, the Section 162(m) Performance Goals to be achieved during any performance period, the
length of any performance period, the amount of any Qualifying Performance Award granted and the amount of any payment or transfer
to be made pursuant to any Qualifying Performance Award shall be determined by the Committee. The Committee shall have the discretion,
by Section 162(m) Participant and by Award, to reduce (but not to increase) some or all of the amount that would otherwise be payable
under the Award by reason of the satisfaction of the Section 162(m) Performance Goals set forth in the Award. In making any such
determination, the Committee is authorized in its discretion to take into account additional factors that the Committee may deem
relevant to the assessment of individual or company performance for the performance period.

 

(b) In any calendar year, no one Section 162(m)
Participant may be granted Awards pursuant to Section 11(a) that allow for payments with an aggregate value determined by the Committee
to be in excess of $10 million; provided that, to the extent that one or more Qualifying Performance Awards granted to any one
Section 162(m) Participant during any calendar year are denominated in Shares, the maximum number of Shares that may underlie such
awards will be determined by reference to the volume-weighted average price of a Share of the Company on the first date of grant
of such awards, subject to adjustment to the extent provided in Section 4(b). In the case of a tandem award pursuant to which a
Section 162(m) Participant’s realization of a portion of such award results in a corresponding reduction to a separate portion
of the award, only the number of Shares or the cash amount relating to the maximum possible realization under the award shall be
counted for purposes of the limitations above

 

    

    

    

 

(i.e., without duplication). For purposes of the foregoing sentence, the calendar
year or years in which amounts under Qualifying Performance Awards are deemed paid, granted or received shall be as determined
by the Committee.

 

(c) Section 162(m) Performance Goals may vary
by Section 162(m) Participant and by Award, and may be based upon the attainment of specific or per-share amounts of, or changes
in, one or more, or a combination of two or more, of the following: earnings (before or after taxes); earnings per share; shareholders’
equity or return on shareholders’ equity; risk-weighted assets or return on risk-weighted assets; capital, capital ratios
or return on capital; book value or book value per share; operating income (before or after taxes); operating margins or pre-tax
margins; stock price or total shareholder return; market share (including market share of revenue); debt reduction or change in
rating; cost reductions; regulatory factors; risk management; expense management; or contributions to community development or
sustainability projects or initiatives. The Committee may provide that in measuring the achievement of the performance objectives,
an Award may include or exclude items such as realized investment gains and losses, extraordinary, unusual or non-recurring items,
asset write-downs, effects of accounting changes, currency fluctuations, acquisitions, divestitures, reserve-strengthening, litigation,
claims, judgments or settlements, the effect of changes in tax law or other such laws or provisions affecting reported results
and other non-operating items, as well as the impact of changes in the fair value of certain of the Company’s long-term and
short-term borrowings resulting from fluctuations in the Company’s credit spreads and other factors. The foregoing objectives
may be applicable to the Company as a whole, one or more of its subsidiaries, divisions, business units or business lines, or any
combination of the foregoing, and may be applied on an absolute basis or be relative to other companies, industries or indices
(e.g., stock market indices) or be based upon any combination of the foregoing. In addition to the performance objectives, the
Committee may also condition payment of any such Award upon the attainment of conditions, such as completion of a period of service,
notwithstanding that the performance objective or objectives specified in the Award are satisfied.

 

(d) Following the completion of any performance
period applicable to a Qualifying Performance Award, the Committee shall certify in writing the applicable performance and amount,
if any, payable to Section 162(m) Participants for such performance period. The amounts payable to a Section 162(m) Participant
will be paid following the end of the performance period after such certification by the Committee in accordance with the terms
of the Qualifying Performance Award.

 

(e) Without further action by the Board, this
Section 11 shall cease to apply on the effective date of the repeal of Section 162(m) of the Code (and any successor provision
thereof).

 

12. Other Awards. The Committee shall
have the authority to establish the terms and provisions of other forms of Awards (such terms and provisions to be specified in
the applicable Award Document) not described above that the Committee determines to be consistent with the purpose of the Plan
and the interests of the Company, which Awards may provide for (i) payments in the form of cash, Stock, notes or other property
as the Committee may determine based in whole or in part on the value or future value of Stock or on any amount that Morgan Stanley
pays as dividends or otherwise distributes with respect to Stock, (ii) the acquisition or future acquisition of Stock, (iii) cash,
Stock, notes or other property as the Committee may determine (including payment of dividend equivalents in cash or Stock) based
on one or more criteria determined by the Committee unrelated to the value of Stock, or (iv) any combination of the foregoing.
Awards pursuant to this Section 12 may, among other things, be made subject to restrictions on transfer, vesting requirements or
cancellation under specified circumstances.

 

13. General Terms and Provisions.

 

(a) Awards in General. Awards may,
in the discretion of the Committee, be made in substitution in whole or in part for cash or other compensation payable to an Eligible
Individual. In accordance with rules and procedures authorized by the Committee, an Eligible Individual may elect one form of Award
in lieu of any other form of Award, or may elect to receive an Award in lieu of all or part of any compensation that otherwise
might have been paid to such Eligible Individual; provided, however, that any such election shall not require the Committee to
make any Award to such Eligible Individual. Any such substitute or elective Awards shall have terms and conditions consistent with
the provisions of the Plan applicable to such Award. Awards may be granted in tandem with, or independent of, other Awards. The
grant, vesting or payment of an Award may, among other things, be conditioned on the attainment of performance objectives, including
without limitation objectives based in whole or in part on net income, pre-tax income, return on equity, earnings per share, total
shareholder return or book value per share.

 

(b) Discretionary Awards. All grants
of Awards and deliveries of Shares, cash or other property under the Plan shall constitute a special discretionary incentive payment
to the Participant and shall not be required to be taken into account in computing the amount of salary, wages or other compensation
of the Participant for the purpose of determining any contributions to or any benefits under any pension, retirement, profit-sharing,
bonus, life insurance, severance or other benefit plan of the Company or other benefits from the Company or under any agreement
with the Participant, unless Morgan Stanley specifically provides otherwise.

 

(c) Dividends and Distributions. If
Morgan Stanley pays any dividend or makes any distribution to holders of Stock, the Committee may in its discretion authorize payments
(which may be in cash, Stock (including Restricted Stock) or Stock Units or a combination thereof) with respect to the Shares corresponding
to an Award, or may authorize appropriate adjustments to outstanding Awards, to reflect such dividend or distribution. The Committee
may make any such payments subject to vesting,

 

    

    

    

 

deferral, restrictions on transfer or other conditions. Any determination by the
Committee with respect to a Participant’s entitlement to receive any amounts related to dividends or distributions to holders
of Stock, as well as the terms and conditions of such entitlement, if any, will be part of the terms and conditions of the Award,
and will be included in the Award Document for such Award.

 

(d) Deferrals. In accordance with the
procedures authorized by, and subject to the approval of, the Committee, Participants may be given the opportunity to defer the
payment or settlement of an Award to one or more dates selected by the Participant. To the extent an Award constitutes a deferral
of compensation subject to Section 409A, the Committee shall set forth in writing (which may be in electronic form), on or before
the date the applicable deferral election is required to be irrevocable in order to meet the requirements of Section 409A, the
conditions under which such election may be made.

 

(e)  Award Documentation and Award Terms.
The terms and conditions of an Award shall be set forth in an Award Document authorized by the Committee. The Award Document shall
include any vesting, exercisability, payment and other restrictions applicable to an Award (which may include, without limitation,
the effects of termination of employment, cancellation of the Award under specified circumstances, restrictions on transfer or
provision for mandatory resale to the Company).

 

14. Certain Restrictions.

 

(a) Stockholder Rights. No Participant
(or other persons having rights pursuant to an Award) shall have any of the rights of a stockholder of Morgan Stanley with respect
to Shares subject to an Award until the delivery of the Shares, which shall be effected by entry of the Participant’s (or
other person’s) name in the share register of Morgan Stanley or by such other procedure as may be authorized by Morgan Stanley.
Except as otherwise provided in Section 4(b) or 13(c), no adjustments shall be made for dividends or distributions on, or other
events relating to, Shares subject to an Award for which the record date is prior to the date such Shares are delivered. Notwithstanding
the foregoing, the terms of an Employee Trust may authorize some or all Participants to give voting or tendering instructions to
the trustee thereof in respect of Shares that are held in such Employee Trust and are subject to Awards. Except for the risk of
cancellation and the restrictions on transfer that may apply to certain Shares (including restrictions relating to any dividends
or other rights) or as otherwise set forth in the applicable Award Document, the Participant shall be the beneficial owner of any
Shares delivered to the Participant in connection with an Award and, upon such delivery shall be entitled to all rights of ownership,
including, without limitation, the right to vote the Shares and to receive cash dividends or other dividends (whether in Shares,
other securities or other property) thereon.

 

(b) Transferability. No Award granted
under the Plan shall be transferable, whether voluntarily or involuntarily, other than by will or by the laws of descent and distribution;
provided that, except with respect to Incentive Stock Options, the Committee may permit transfers on such terms and conditions
as it shall determine. During the lifetime of a Participant to whom Incentive Stock Options were awarded, such Incentive Stock
Options shall be exercisable only by the Participant.

 

15. Representation; Compliance with Law.
The Committee may condition the grant, exercise, settlement or retention of any Award on the Participant making any representations
required in the applicable Award Document. Each Award shall also be conditioned upon the making of any filings and the receipt
of any consents or authorizations required to comply with, or required to be obtained under, applicable law.

 

16. Miscellaneous Provisions.

 

(a) Satisfaction of Obligations. As
a condition to the making or retention of any Award, the vesting, exercise or payment of any Award or the lapse of any restrictions
pertaining thereto, Morgan Stanley may require a Participant to pay such sum to the Company as may be necessary to discharge the
Company’s obligations with respect to any taxes, assessments or other governmental charges (including FICA and other social
security or similar tax) imposed on property or income received by a Participant pursuant to the Award or to satisfy any obligation
that the Participant owes to the Company. In accordance with rules and procedures authorized by Morgan Stanley, (i) such payment
may be in the form of cash or other property, including the tender of previously owned Shares, and (ii) in satisfaction of such
taxes, assessments or other governmental charges or, exclusively in the case of an Award that does not constitute a deferral of
compensation subject to Section 409A, of other obligations that a Participant owes to the Company, Morgan Stanley may make available
for delivery a lesser number of Shares in payment or settlement of an Award, may withhold from any payment or distribution of an
Award or may enter into any other suitable arrangements to satisfy such withholding or other obligation. To the extent an Award
constitutes a deferral of compensation subject to Section 409A, the Company may not offset from the payment of such Award amounts
that a Participant owes to the Company with respect to any such other obligation except to the extent such offset is not prohibited
by Section 409A and would not cause a Participant to recognize income for United States federal income tax purposes prior to the
time of payment of the Award or to incur interest or additional tax under Section 409A.

 

(b) No Right
to Continued Employment. Neither the Plan nor any Award shall give rise to any right on the part of any Participant to continue
in the employ of the Company. 

 

    

    

    

 

(c) Headings. The headings of sections
herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan.

 

(d) Governing Law. The Plan and all
rights hereunder shall be construed in accordance with and governed by the laws of the State of New York, without regard to any
conflicts or choice of law, rule or principle that might otherwise refer the interpretation of the award to the substantive law
of another jurisdiction.

 

(e) Amendments and Termination. The
Board or Committee may modify, amend, suspend or terminate the Plan in whole or in part at any time and may modify or amend the
terms and conditions of any outstanding Award (including by amending or supplementing the relevant Award Document at any time);
provided, however, that no such modification, amendment, suspension or termination shall, without a Participant’s consent,
materially adversely affect that Participant’s rights with respect to any Award previously made; and provided, further, that
the Committee shall have the right at any time, without a Participant’s consent and whether or not the Participant’s
rights are materially adversely affected thereby, to amend or modify the Plan or any Award under the Plan in any manner that the
Committee considers necessary or advisable to comply with any law, regulation, ruling, judicial decision, accounting standards,
regulatory guidance or other legal requirement. Notwithstanding the preceding sentence, neither the Board nor the Committee may
accelerate the payment or settlement of any Award, including, without limitation, any Award subject to a prior deferral election,
that constitutes a deferral of compensation for purposes of Section 409A except to the extent such acceleration would not result
in the Participant incurring interest or additional tax under Section 409A. No amendment to the Plan may render any Board member
who is not a Company employee eligible to receive an Award at any time while such member is serving on the Board. To the extent
required by applicable law or the rules of the New York Stock Exchange, amendments to the Plan shall not be effective unless they
are approved by Morgan Stanley’s stockholders.

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