Document:

Pledge Agreement

 EXHIBIT 4.18 
  

 PPL CORPORATION 
                                       
                                        
  , 
 as Collateral Agent and Securities Intermediary 
 and 
 JPMORGAN CHASE BANK, N.A., 
 as Purchase Contract Agent 
  

 PLEDGE AGREEMENT 
  

 Dated as of
                         
  

 TABLE OF CONTENTS 
  

					
	 SECTION 1.
	 	 Definitions.
	  	2
			
	 SECTION 2.
	 	 Pledge; Control.
	  	5
	 SECTION 2.1
	 	 The Pledge.
	  	5
	 SECTION 2.2
	 	 Control; Financing Statement.
	  	5
	 SECTION 2.3
	 	 Termination.
	  	6
			
	 SECTION 3.
	 	 Distributions on Pledged Collateral.
	  	6
	 SECTION 3.1
	 	 Income Distributions.
	  	6
	 SECTION 3.2
	 	 Principal Payments Following Termination Event.
	  	6
	 SECTION 3.3
	 	 Principal Payments Prior To or On Purchase Contract Settlement Date.
	  	6
	 SECTION 3.4
	 	 Payments to Purchase Contract Agent.
	  	7
	 SECTION 3.5
	 	 Assets Not Properly Released.
	  	7
			
	 SECTION 4.
	 	 Control.
	  	7
	 SECTION 4.1
	 	 Establishment of Collateral Account.
	  	7
	 SECTION 4.2
	 	 Treatment as Financial Assets.
	  	8
	 SECTION 4.3
	 	 Sole Control by Collateral Agent.
	  	8
	 SECTION 4.4
	 	 Securities Intermediary’s Location.
	  	8
	 SECTION 4.5
	 	 No Other Claims.
	  	8
	 SECTION 4.6
	 	 Investment and Release.
	  	8
	 SECTION 4.7
	 	 Statements and Confirmations.
	  	9
	 SECTION 4.8
	 	 Tax Allocations.
	  	9
	 SECTION 4.9
	 	 No Other Agreements.
	  	9
	 SECTION 4.10
	 	 Powers Coupled With An Interest.
	  	9
			
	 SECTION 5.
	 	 Initial Deposit; Establishment of Treasury SPC Units and Reestablishment of SPC Units.
	  	9
	 SECTION 5.1
	 	 Initial Deposit of Notes.
	  	9
	 SECTION 5.2
	 	 Establishment of Treasury SPC Units.
	  	9
	 SECTION 5.3
	 	 Reestablishment of SPC Units.
	  	10
	 SECTION 5.4
	 	 Termination Event.
	  	11
	 SECTION 5.5
	 	 Cash Settlement.
	  	12
	 SECTION 5.6
	 	 Early Settlement.
	  	13
	 SECTION 5.7
	 	 Application of Proceeds Settlement.
	  	14
	 SECTION 5.8
	 	 [Tax Event Redemption.
	  	15
			
	 SECTION 6.
	 	 Voting Rights.
	  	16
			
	 SECTION 7.
	 	 Rights and Remedies.
	  	16
	 SECTION 7.1
	 	 Rights and Remedies of the Collateral Agent.
	  	16
	 SECTION 7.2
	 	 [Tax Event Redemption.
	  	17
	 SECTION 7.3
	 	 Substitutions.
	  	18

  

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	 SECTION 8.
	  	 Representations and Warranties; Covenants.
	  	18
	 SECTION 8.1
	  	 Representations and Warranties.
	  	18
	 SECTION 8.2
	  	 Covenants.
	  	18
			
	 SECTION 9.
	  	 The Collateral Agent and the Securities Intermediary.
	  	19
	 SECTION 9.1
	  	 Appointment, Powers and Immunities.
	  	19
	 SECTION 9.2
	  	 Instructions of the Company.
	  	20
	 SECTION 9.3
	  	 Reliance by Collateral Agent and Securities Intermediary.
	  	20
	 SECTION 9.4
	  	 Rights in Other Capacities.
	  	20
	 SECTION 9.5
	  	 Non-Reliance on Collateral Agent and Securities Intermediary.
	  	21
	 SECTION 9.6
	  	 Compensation and Indemnity.
	  	21
	 SECTION 9.7
	  	 Failure to Act.
	  	22
	 SECTION 9.8
	  	 Resignation of Collateral Agent and Securities Intermediary.
	  	22
	 SECTION 9.9
	  	 Right to Appoint Agent or Advisor.
	  	24
	 SECTION 9.10
	  	 Survival.
	  	24
	 SECTION 9.11
	  	 Exculpation.
	  	24
			
	 SECTION 10.
	  	 Amendment.
	  	24
	 SECTION 10.1
	  	 Amendment Without Consent of Holders.
	  	24
	 SECTION 10.2
	  	 Amendment With Consent of Holders.
	  	25
	 SECTION 10.3
	  	 Execution of Amendments.
	  	25
	 SECTION 10.4
	  	 Effect of Amendments.
	  	26
	 SECTION 10.5
	  	 Reference to Amendments.
	  	26
			
	 SECTION 11.
	  	 Miscellaneous.
	  	26
	 SECTION 11.1
	  	 No Waiver.
	  	26
	 SECTION 11.2
	  	 Governing Law.
	  	26
	 SECTION 11.3
	  	 Notices.
	  	27
	 SECTION 11.4
	  	 Successors and Assigns.
	  	27
	 SECTION 11.5
	  	 Counterparts.
	  	27
	 SECTION 11.6
	  	 Severability.
	  	27
	 SECTION 11.7
	  	 Expenses, etc.
	  	27
	 SECTION 11.8
	  	 Security Interest Absolute.
	  	28
	 SECTION 11.9
	  	 Notice of a Tax Event, Tax Event Redemption and Termination Event
	  	28

  

					
	 EXHIBIT A
	  	 Instruction from Purchase Contract Agent to Collateral Agent (Establishment of Treasury SPC Units)
	  	
	 EXHIBIT B
	  	 Instruction from Collateral Agent to Securities Intermediary (Establishment of Treasury SPC Units)
	  	
	 EXHIBIT C
	  	 Instruction from Purchase Contract Agent to Collateral Agent (Reestablishment of SPC Units)
	  	
	 EXHIBIT D
	  	 Instruction from Collateral Agent to Securities Intermediary (Reestablishment of SPC Units)
	  	
	 EXHIBIT E
	  	 Notice of Cash Settlement from the Securities Intermediary to the Purchase Contract Agent
	  	

  

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 PLEDGE AGREEMENT 
 PLEDGE AGREEMENT, dated as of                     ,
             among              PPL CORPORATION, a Pennsylvania corporation (the “Company”),
                    , as collateral agent (in such capacity, together with its successors in such capacity, the “Collateral
Agent”), and as a “securities intermediary” within the meaning of Section 8-102(a)(14) of the UCC (as defined herein) with respect to the Collateral Account (in such capacity, together with its successors in such capacity, the
“Securities Intermediary”), and JPMORGAN CHASE BANK, N.A., a national banking association, as purchase contract agent and as attorney-in-fact of the Holders from time to time of the Securities (in such capacity, together with its
successors in such capacity, the “Purchase Contract Agent”) under the Purchase Contract Agreement. 
 RECITALS 
 The Company and the Purchase Contract Agent are parties to the Purchase Contract Agreement dated as of the date hereof (as modified and supplemented and
in effect from time to time, the “Purchase Contract Agreement”), pursuant to which there may be issued up to                     
SPC Units (the “Securities”). 
 Each SPC Unit, at issuance, consists of a unit comprised of (a) a stock purchase contract
(as modified and supplemented and in effect from time to time, a “Purchase Contract”) under which [(i)] the Holder will purchase from the Company not later than the Purchase Contract Settlement Date, for an amount in cash equal to $[25]
(the “Stated Amount”), a number of shares of PPL Corporation Common Stock $.01 per share par value (“Common Stock”) equal to the Settlement Rate (as defined in the Purchase Contract Agreement), [and (ii) the Company will pay the
Holder Purchase Contract Payments] and (b) a note of PPL Capital Funding, Inc., a wholly-owned subsidiary of the Company, which note shall be guaranteed as to payment of principal, premium, if any, and interest by the Company (a “Note”),
having a principal amount equal to the Stated Amount and maturing on                     . 
 [address overallotment option, if applicable] 
 Pursuant to the terms of the Purchase Contract Agreement and the Purchase Contracts, the Holders of the Securities have irrevocably authorized the Purchase Contract Agent, as attorney-in-fact of such Holders, among other things, to execute
and deliver this Agreement on behalf of such Holders and to grant the pledge provided herein of the Collateral Account to secure the Obligations. 
 Accordingly, the Company, the Collateral Agent, the Securities Intermediary and the Purchase Contract Agent, on its own behalf and as attorney-in-fact of the Holders from time to time of the Securities, agree as follows: 

 SECTION 1. Definitions. 
 For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: 
 (a) the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular; 
 (b) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and
not to any particular Article, Section, Exhibit or other subdivision; 
 (c) the following terms which are defined in the UCC shall have the
meanings set forth therein: “certificated security”, “control”, “financial asset”, “entitlement order”, “securities account” and “securities entitlement”; 
 (d) the following terms have the meanings assigned to them in the Purchase Contract Agreement: “Act,” “Applicable Ownership
Interest,” “Applicable Principal Amount,” “Bankruptcy Code,” “Board Resolution,” “Business Day,” “Cash Settlement,” “Certificate,” “Early Settlement,” “Early Settlement
Amount,” “Early Settlement Date,” “Failed Remarketing,” “Holders,” “Indenture,” “Indenture Trustee,” “Opinion of Counsel,” “Outstanding Securities,” “SPC Units,”
“Person,” “Primary Treasury Dealer,” “Purchase Contract,” “Purchase Contract Payments,” “Purchase Contract Settlement Date,” “Purchase Price,” “Quotation Agent,” “Redemption
Amount,” “Redemption Price,” “Remarketing Agent,” “Remarketing Agreement,” “Settlement Rate,” “Tax Event,” “Tax Event Redemption,” “Tax Event Redemption Date,”
“Termination Event,” “Treasury Portfolio,” “Treasury SPC Units,” and “Underwriting Agreement”; and 
 (e) the following terms have the meanings given to them in this section 1(e) 
 “Agreement” means this Pledge
Agreement, as the same may be amended, modified or supplemented from time to time. 
 “Cash” means any coin or currency of
the United States as at the time shall be legal tender for payment of public and private debts. 
 “Collateral” has the
meaning specified in the definition of Collateral Account. 
 “Collateral Account” means the collective reference to:

 (1) Securities Account No.      entitled
“                    , maintained at [Collateral Agent] in the name of “JPMorgan Chase Bank, N.A., as Purchase Contract Agent on
behalf of the holders of securities subject to the Security Interest of                      as Collateral Agent under the Pledge Agreement,
for the benefit of PPL Corporation, as pledgee” maintained by the Securities Intermediary for the Purchase Contract Agent on behalf of and as attorney-in-fact for the Holders; 
  

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 (2) all investment property and other financial assets from time to time credited to the
Collateral Account, including, without limitation, (A) the Notes and securities entitlements relating thereto which are a component of the SPC Units from time to time, (B) the Applicable Ownership Interests (as specified in Clause (A) of the
definition of such term) of the Holders with respect to the Treasury Portfolio which are a component of the SPC Units from time to time, (C) any Treasury Securities and securities entitlements relating thereto delivered from time to time upon
establishment of Treasury SPC Units in accordance with Section 5.2 hereof and (D) payments made by Holders pursuant to Section 5.5 hereof; 
 (3) all Proceeds of any of the foregoing (whether such Proceeds arise before or after the commencement of any proceeding under any applicable bankruptcy, insolvency or other similar law, by or against the pledgor or
with respect to the pledgor); and 
 (4) all powers and rights now owned or hereafter acquired under or with respect to the
Collateral Account; 
 ((2), (3) and (4) being collectively referred to herein as the “Collateral”). 
 “Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor shall have
become such pursuant to the applicable provisions of the Purchase Contract Agreement, and thereafter “Company” shall mean such successor. 
 “Obligations” means, with respect to each Holder, the collective reference to all obligations and liabilities of such Holder under such Holder’s Purchase Contract (including, but not limited to, such Holder’s
obligation to pay the aggregate Purchase Price for Common Stock on the Purchase Contract Settlement Date) and this Agreement or any other document made, delivered or given in connection herewith or therewith, in each case whether on account of
principal, interest (including, without limitation, interest accruing before and after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to such Holder, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding), purchase price, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Company or the Collateral
Agent or the Securities Intermediary that are required to be paid by the Holder pursuant to the terms of any of the foregoing agreements). 
 “Permitted Investments” means any one of the following which shall mature not later than the next succeeding Business Day: 
 (1) any evidence of indebtedness with an original maturity of 365 days or less issued, or directly and fully guaranteed or insured, by the United States of America or any agency or instrumentality thereof (provided
that the full faith and credit of the United States of America is pledged in support of the timely payment thereof or such indebtedness constitutes a general obligation of it); 
 (2) deposits, certificates of deposit or acceptances with an original maturity of 365 days or less of any institution which is a member of
the Federal Reserve System having combined capital and surplus and undivided profits of not less than $200.0 million at the time of deposit; 
  

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 (3) investments with an original maturity of 365 days or less of any Person that is fully
and unconditionally guaranteed by a bank referred to in clause (2); 
 (4) repurchase agreements and reverse repurchase
agreements relating to marketable direct obligations issued or unconditionally guaranteed by the United States Government or issued by any agency thereof and backed as to timely payment by the full faith and credit of the United States Government;

 (5) investments in commercial paper, other than commercial paper issued by the Company or its affiliates, of any
corporation incorporated under the laws of the United States or any State thereof, which commercial paper has a rating at the time of purchase at least equal to “A-1” by Standard & Poor’s Ratings Services (“S&P”) or
at least equal to “P-1” by Moody’s Investors Service, Inc. (“Moody’s”); and 
 (6) investments
in money market funds registered under the Investment Company Act of 1940, as amended, rated in the highest applicable rating category by S&P or Moody’s. 
 “Person” means any legal person, including any individual, corporation, estate, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated
organization or government or any agency or political subdivision thereof. 
 “Pledge” means the pledge, lien and security
interest created by this Agreement. 
 “Pledged Notes” means the Notes and securities entitlements with respect thereto from
time to time credited to the Collateral Account and not then released from the Pledge. 
 “Pledged Treasury Securities”
means Treasury Securities and securities entitlements with respect thereto from time to time credited to the Collateral Account and not then released from the Pledge. 
 “Proceeds” has the meaning ascribed thereto in the UCC and includes, without limitation, all interest, dividends, cash, instruments, securities, financial assets (as defined in Section 8-102(a)(9) of
the UCC) and other property received, receivable or otherwise distributed upon the sale, exchange, collection or disposition of any financial assets from time to time held in the Collateral Account. 
 “Purchase Contract Agent” has the meaning specified in the paragraph preceding the recitals of this Agreement. 
 “TRADES” means the Treasury Reserve Automated Debt Entry System maintained by the Federal Reserve Bank of New York pursuant to the
TRADES Regulations. 
 “TRADES Regulations” means the regulations of the United States Department of the Treasury, published
at 31 C.F.R. Part 357, as amended from time to time. Unless otherwise defined herein, all terms defined in the TRADES Regulations are used herein as therein defined. 
  

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 “Transfer” means: 
 (1) in the case of certificated securities in registered form, delivery as provided in Section 8-301(a) of the UCC, indorsed to the
transferee or in blank by an effective indorsement; 
 (2) in the case of Treasury Securities, registration of the transferee
as the owner of such Treasury Securities on TRADES; and 
 (3) in the case of securities entitlements, including, without
limitation, securities entitlements with respect to Treasury Securities, a securities intermediary indicating by book entry that such security entitlement has been credited to the transferee’s securities account. 
 “Treasury Securities” means zero-coupon U.S. Treasury Securities (Cusip No.
            ) which are the principal strips of the     % U.S. Treasury Securities which mature on
                    . 
 “UCC” means the Uniform Commercial Code as in effect in the State of New York from time to time. 
 “Value” means, with respect to any item of Collateral on any date, as to (1) Cash, the face amount thereof and (2) Notes or Treasury Securities, the aggregate principal amount thereof at maturity. 
 SECTION 2. Pledge; Control. 
 SECTION 2.1 The Pledge. 
 Each Holder, from time to time acting through the Purchase Contract Agent as such Holder’s
attorney-in-fact, hereby pledges and grants to the Collateral Agent, as agent of and for the benefit of the Company, as collateral security for the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or
otherwise) of the Obligations, a continuing first priority security interest in and to, and a lien upon and right of set off against, all of the right, title and interest of such Holder and the Purchase Contract Agent in and to the Collateral and
the Collateral Account. The Collateral Agent shall have all of the rights, remedies and recourses with respect to the Collateral afforded a secured party by the UCC, in addition to, and not in limitation of, the other rights, remedies and recourses
afforded to the Collateral Agent by this Agreement. 
 SECTION 2.2 Control; Financing Statement. 
 (a) The Collateral Agent shall have control of the Collateral Account pursuant to the provisions of Section 4 of this Agreement. 
  

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 (b) On the date of initial issuance of the Securities, the Purchase Contract Agent shall deliver to the
Collateral Agent a financing statement prepared by the Company for filing in the Office of the Secretary of State of the State of New York, signed by the Purchase Contract Agent, as attorney-in- fact for the Holders, as Debtors, and describing the
Collateral. 
 SECTION 2.3 Termination. 
 As to each Holder, this Agreement and the Pledge created hereby shall terminate upon the satisfaction of such Holder’s Obligations. Upon such termination, the Securities Intermediary shall Transfer such
Holder’s portion of the Collateral to the Purchase Contract Agent for distribution to such Holder in accordance with his interest, free and clear of any lien, pledge or security interest created hereby. 
 SECTION 3. Distributions on Pledged Collateral. 
 SECTION 3.1 Income Distributions. 
 All income distributions received by the Securities Intermediary
on account of the [Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio,] the Notes or Permitted Investments from time to time held in the Collateral Account shall be distributed to the
Purchase Contract Agent for the benefit of the applicable Holders as provided in the Purchase Contracts or the Purchase Contract Agreement. 
 SECTION 3.2 Principal Payments Following Termination Event. 
 All payments received by the Securities Intermediary following
a Termination Event of (1) the principal amount of Pledged Notes or securities entitlements with respect thereto or (2) the Applicable Ownership Interests (as specified in Clause (A) of the definition thereof) in the Treasury Portfolio or (3) the
principal amount of the Pledged Treasury Securities or securities entitlements with respect thereto, shall be distributed to the Purchase Contract Agent for the benefit of the applicable Holders for distribution to such Holders in accordance with
their respective interests. 
 SECTION 3.3 Principal Payments Prior To or On Purchase Contract Settlement Date. 
 (a) Subject to the provisions of Section 7.2, and except as provided in clause 3.3(b) below, if no Termination Event shall have occurred, all payments
received by the Securities Intermediary of (1) the principal amount with respect to the Pledged Notes or securities entitlements with respect thereto, (2) the Applicable Ownership Interests (as specified in Clause (A) of the definition thereof) in
the Treasury Portfolio, or (3) the principal amount of Pledged Treasury Securities or securities entitlements with respect thereto, shall be held and invested in Permitted Investments until the Purchase Contract Settlement Date and on the Purchase
Contract Settlement Date distributed to the Company as provided in Section 5.7 hereof. Any balance remaining in the Collateral Account shall be distributed to the Purchase Contract Agent for the benefit of the applicable Holders for distribution to
such Holders in accordance with their respective interests. 
  

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 (b) All payments received by the Securities Intermediary of (1) the principal amount of Notes or
securities entitlements with respect thereto, (2) the Applicable Ownership Interests (as specified in Clause (A) of the definition thereof) in the Treasury Portfolio, or (3) the principal amount of Treasury Securities or securities entitlements with
respect thereto, that, in each case, have been released from the Pledge shall be distributed to the Purchase Contract Agent for the benefit of the applicable Holders for distribution to such Holders in accordance with their respective interests.

 SECTION 3.4 Payments to Purchase Contract Agent. 
 Payments to the Purchase Contract Agent hereunder shall be made to the account designated by the Purchase Contract Agent for such purpose not later than 12:00 p.m. (New York City time) on the Business Day such payment
is received by the Securities Intermediary; provided, however, that if such payment is received on a day that is not a Business Day or after 12:00 p.m. (New York City time) on a Business Day, then such payment shall be made no later than 10:30 a.m.
(New York City time) on the next succeeding Business Day. 
 SECTION 3.5 Assets Not Properly Released. 
 If the Purchase Contract Agent or any Holder shall receive any principal payments on account of financial assets credited to the Collateral Account and
not released therefrom in accordance with this Agreement, the Purchase Contract Agent or such Holder shall hold the same as trustee of an express trust for the benefit of the Company and, upon receipt of an Officers’ Certificate (as defined in
the Purchase Contract Agreement) of the Company so directing, promptly deliver the same to the Securities Intermediary for credit to the Collateral Account or to the Company for application to the obligations of the Holders under the related
Purchase Contracts, and the Purchase Contract Agent and Holders shall acquire no right, title or interest in any such payments of principal amounts so received. 
 SECTION 4. Control. 
 SECTION 4.1 Establishment of Collateral Account. 
 The Securities Intermediary hereby confirms that: 
 (1) the Securities Intermediary has established the Collateral Account; 
 (2) the Collateral
Account is a securities account; 
 (3) subject to the terms of this Agreement, the Securities Intermediary shall treat the
Purchase Contract Agent as entitled to exercise the rights that comprise any financial asset credited to the Collateral Account; 
 (4) all property delivered to the Securities Intermediary pursuant to this Agreement or the Purchase Contract Agreement will be credited promptly to the Collateral Account; 
  

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 (5) all securities or other property underlying any financial assets credited to the
Collateral Account shall be registered in the name of the Securities Intermediary, indorsed to the Securities Intermediary, or in blank or credited to another securities account maintained in the name of the Securities Intermediary, and in no case
will any financial asset credited to the Collateral Account be registered in the name of the Purchase Contract Agent or any Holder, payable to the order of the Purchase Contract Agent or any Holder or specially indorsed to the Purchase Contract
Agent or any Holder. 
 SECTION 4.2 Treatment as Financial Assets. 
 Each item of property (whether investment property, financial asset, security, instrument or cash) credited to the Collateral Account shall be treated as
a financial asset. 
 SECTION 4.3 Sole Control by Collateral Agent. 
 Except as provided in Section 6, at all times prior to the termination of the Pledge, the Collateral Agent shall have sole control of the Collateral
Account, and the Securities Intermediary shall take instructions and directions with respect to the Collateral Account solely from the Collateral Agent. If at any time the Securities Intermediary shall receive an entitlement order issued by the
Collateral Agent and relating to the Collateral Account, the Securities Intermediary shall comply with such entitlement order without further consent by the Purchase Contract Agent or any Holder or any other Person. Until termination of the Pledge,
the Securities Intermediary will not comply with any entitlement orders issued by the Purchase Contract Agent or any Holder. 
 SECTION
4.4 Securities Intermediary’s Location. 
 The Collateral Account, and the rights and obligations of the Securities Intermediary, the
Collateral Agent, the Purchase Contract Agent and the Holders with respect thereto, shall be governed by the laws of the State of New York. Regardless of any provision in any other agreement, for purposes of the UCC, New York shall be deemed to be
the Securities Intermediary’s location. 
 SECTION 4.5 No Other Claims. 
 Except for the claims and interest of the Collateral Agent and of the Purchase Contract Agent and the Holders in the Collateral Account, the Securities
Intermediary does not know of any claim to, or interest in, the Collateral Account or in any financial asset credited thereto. If any person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of
attachment, execution or similar process) against the Collateral Account or in any financial asset carried therein, the Securities Intermediary will promptly notify the Collateral Agent and the Purchase Contract Agent. 
 SECTION 4.6 Investment and Release. 
 All proceeds of financial assets from time to time deposited in the Collateral Account shall be invested and reinvested as provided in this Agreement. At all times prior to termination of the Pledge, no property shall be released from the
Collateral Account except in accordance with this Agreement or upon written instructions of the Collateral Agent. 
  

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 SECTION 4.7 Statements and Confirmations. 
 The Securities Intermediary will promptly send copies of all statements, confirmations and other correspondence concerning the Collateral Account and any
financial assets credited thereto simultaneously to each of the Purchase Contract Agent and the Collateral Agent at their addresses for notices under this Agreement. 
 SECTION 4.8 Tax Allocations. 
 The Purchase Contract Agent shall report all items of income, gain,
expense and loss recognized in the Collateral Account to the Internal Revenue Service and all state and local taxing authorities under the names and taxpayer identification numbers of the holders which are the beneficial owners thereof. 

SECTION 4.9 No Other Agreements. 
 The Securities Intermediary has not entered into, and prior to the termination of the Pledge will not enter into, any agreement with any other Person relating to the Collateral Account or any financial assets credited thereto, including,
without limitation, any agreement to comply with entitlement orders of any Person other than the Collateral Agent. 
 SECTION 4.10 Powers
Coupled With An Interest. 
 The rights and powers granted in this Section 4 to the Collateral Agent have been granted in order to perfect
its security interests in the Collateral Account, are powers coupled with an interest and will be affected neither by the bankruptcy of the Purchase Contract Agent or any Holder nor by the lapse of time. The obligations of the Securities
Intermediary under this Section 4 shall continue in effect until the termination of the Pledge. 
 SECTION 5. Initial Deposit;
Establishment of Treasury SPC Units and Reestablishment of SPC Units. 
 SECTION 5.1 Initial Deposit of Notes. 
 Prior to or concurrently with the execution and delivery of this Agreement, the Purchase Contract Agent, on behalf of the initial Holders of the SPC
Units, shall Transfer to the Securities Intermediary, for credit to the Collateral Account, the Notes or securities entitlements relating thereto, and the Securities Intermediary shall indicate by book-entry that a securities entitlement to such
Notes has been credited to the Collateral Account. 
 SECTION 5.2 Establishment of Treasury SPC Units. 
 (a) [So long as no Tax Event Redemption shall have occurred,] at any time prior to or on the seventh Business Day immediately preceding the Purchase
Contract Settlement Date, a Holder of SPC Units shall have the right to establish or reestablish Treasury SPC Units 

  

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by substitution of Treasury Securities or securities entitlements thereto for the Pledged Notes comprising a part of such Holder’s SPC Units in integral
multiples of [40] SPC Units by: 
 (1) transferring to the Securities Intermediary for credit to the Collateral Account
Treasury Securities or securities entitlements thereto having a Value equal to the principal amount of the Pledged Notes to be released, accompanied by a notice, substantially in the form of Exhibit C to the Purchase Contract Agreement, whereupon
the Purchase Contract Agent shall deliver to the Collateral Agent a notice, substantially in the form of Exhibit A hereto, (A) stating that such Holder has Transferred Treasury Securities or securities entitlements thereto to the Securities
Intermediary for credit to the Collateral Account, (B) stating the Value of the Treasury Securities or securities entitlements thereto Transferred by such Holder and (C) requesting that the Collateral Agent release from the Pledge the Pledged Notes
that are a component of such SPC Units; and 
 (2) delivering the related SPC Units to the Purchase Contract Agent.

 Upon receipt of such notice and confirmation that Treasury Securities or securities entitlements thereto have been credited to the
Collateral Account as described in such notice, the Collateral Agent shall instruct the Securities Intermediary by a notice, substantially in the form of Exhibit B hereto, to release such Pledged Notes from the Pledge by Transfer to the Purchase
Contract Agent for distribution to such Holder, free and clear of any lien, pledge or security interest created hereby. 
 (b) [If a Tax
Event Redemption has occurred and the Treasury Portfolio has become a component of the SPC Units, a Holder of SPC Units shall not have the right to establish or reestablish Treasury SPC Units.] 
 (c) Upon credit to the Collateral Account of Treasury Securities or securities entitlements thereto delivered by a Holder of SPC Units and receipt of the
related instruction from the Collateral Agent, the Securities Intermediary shall release the Pledged Notes and shall promptly transfer the same to the Purchase Contract Agent for distribution to such Holder, free and clear of any lien, pledge or
security interest created hereby. 
 SECTION 5.3 Reestablishment of SPC Units. 
 (a) [So long as no Tax Event Redemption shall have occurred,] at any time prior to or on the seventh Business Day immediately preceding the Purchase
Contract Settlement Date, a Holder of Treasury SPC Units shall have the right to reestablish SPC Units by substitution of Notes or securities entitlements thereto for Pledged Treasury Securities in integral multiples of [40] Treasury SPC Units by:

 (1) Transferring to the Securities Intermediary for credit to the Collateral Account [Notes or securities entitlements
thereto having a principal amount equal to the Value of the Pledged Treasury Securities to be released, accompanied by a notice, substantially in the form of Exhibit C to the Purchase Contract Agreement, whereupon the Purchase Contract Agent shall
deliver to the Collateral Agent a notice, substantially in the form of Exhibit C hereto, (A) stating that such Holder has Transferred Notes or 

  

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securities entitlements thereto to the Securities Intermediary for credit to the Collateral Account and (B) requesting that the Collateral Agent release from
the Pledge the Pledged Treasury Securities related to such Treasury SPC Units; and 
 (2) delivering the related Treasury SPC
Units to the Purchase Contract Agent. 
 Upon receipt of such notice and confirmation that Notes or securities entitlements thereto have been
credited to the Collateral Account as described in such notice, the Collateral Agent shall instruct the Securities Intermediary by a notice in the form provided in Exhibit D hereto to release such Pledged Treasury Securities from the Pledge by
Transfer to the Purchase Contract Agent for distribution to such Holder. 
 [(b) If a Tax Event Redemption has occurred and the Treasury
Portfolio has become a component of the SPC Units, a holder of a Treasury SPC Unit shall not have the right to reestablish a SPC Unit.] 
 (c) Upon credit to the Collateral Account of Notes or securities entitlements thereto, and receipt of the related instruction from the Collateral Agent, the Securities Intermediary shall release the applicable Pledged Treasury Securities
and shall promptly Transfer the same to the Purchase Contract Agent for distribution to such Holder, free and clear of any lien, pledge or security interest created hereby. 
 SECTION 5.4 Termination Event. 
 (a)
Upon receipt by the Collateral Agent of written notice from the Company or the Purchase Contract Agent that a Termination Event has occurred, the Collateral Agent shall release all Collateral from the Pledge and shall promptly Transfer: 

(1) any Pledged Notes or securities entitlements with respect thereto [or the Applicable Ownership Interest (as specified in clause (A)
of the definition of such term) in the Treasury Portfolio (if a Tax Event Redemption has occurred and the Treasury Portfolio has become a component of the SPC Units)]; and 
 (2) any Pledged Treasury Securities, to the Purchase Contract Agent for the benefit of the Holders for distribution to such Holders in
accordance with their respective interests, free and clear of any lien, pledge or security interest or other interest created hereby; provided, however, if any Holder shall be entitled to receive less than $1,000 with respect to his interest in the
Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio, the Purchase Contract Agent shall have the right to dispose of such interest for cash and deliver to such Holder cash in lieu of
delivering the Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio. 
 (b) If
such Termination Event shall result from the Company’s becoming a debtor under the Bankruptcy Code, and if the Collateral Agent shall for any reason fail promptly to effectuate the release and Transfer of all Pledged Notes [or the Applicable
Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio,] or the 

  

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Pledged Treasury Securities, as the case may be, as provided by this Section 5.4, the Purchase Contract Agent shall: 
 (1) use its best efforts to (i) obtain, at the expense of the Company, an opinion of a nationally recognized law firm reasonably
acceptable to the Collateral Agent to the effect that, as a result of the Company’s being the debtor in such a bankruptcy case, the Collateral Agent will not be prohibited from releasing or Transferring the Collateral as provided in this
Section 5.4, and (ii) deliver such opinion to the Collateral Agent within ten days after the occurrence of such Termination Event, and if (A) the Purchase Contract Agent shall be unable to obtain such opinion within ten days after the occurrence of
such Termination Event or (B) the Collateral Agent shall continue, after delivery of such opinion, to refuse to effectuate the release and Transfer of all Pledged Notes [or the Applicable Ownership Interest (as specified in clause (A) of the
definition of such term) in the Treasury Portfolio,] all the Pledged Treasury Securities or the Proceeds of any of the foregoing, as the case may be, as provided in this Section 5.4, then the Purchase Contract Agent shall within fifteen days after
the occurrence of such Termination Event commence (subject to Section 7.1(b)(3) of the Purchase Contract Agreement) an action or proceeding in the court having jurisdiction of the Company’s case under the Bankruptcy Code seeking an order
requiring the Collateral Agent to effectuate the release and transfer of all Pledged [Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio, the Pledged] Notes or all the Pledged Treasury
Securities, as the case may be, as provided by this Section 5.4; or 
 (2) commence (subject to Section 7.1(b)(3) of the
Purchase Contract Agreement) an action or proceeding like that described in clause 5.4(b)(1)(B) hereof within ten days after the occurrence of such Termination Event. 
 SECTION 5.5 Cash Settlement. 
 (a) Upon receipt by the Collateral Agent of (1) a notice from the Purchase Contract Agent promptly after the receipt by the Purchase Contract Agent of a notice from a Holder of SPC Units or Treasury SPC Units that such Holder has elected,
in accordance with the procedures specified in Section 5.4(a)(i) or (d)(i) of the Purchase Contract Agreement, respectively, to effect a Cash Settlement and (2) payment by such Holder by deposit in the Collateral Account prior to or on 11:00 a.m.
(New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date [in the case of a SPC Unit, unless a Tax Event Redemption has occurred, or on the Business Day prior to the Purchase Contract Settlement Date
in the case of Treasury SPC Units or a SPC Unit, if a Tax Event Redemption has occurred,] of the Purchase Price in lawful money of the United States by certified or cashier’s check or wire transfer of immediately available funds payable to or
upon the order of the Securities Intermediary, then the Collateral Agent shall: 
 (1) instruct the Securities Intermediary
promptly to invest any such Cash in Permitted Investments [maturing on or prior to the Contract Settlement Date]; 
 (2)
release from the Pledge (i) in the case of a Holder of SPC Units, the related Pledged Notes [or Applicable Ownership Interest (as specified in clause (A) of the 

  

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definition of such term) in the Treasury Portfolio, as applicable] or (ii) in the case of a Holder of Treasury SPC Units, the related Pledged Treasury
Securities with a principal amount equal to the product of (x) the Stated Amount times (y) the number of Purchase Contracts as to which such Holder has elected to effect a Cash Settlement pursuant to this Section 5.5(a); and 
 (3) instruct the Securities Intermediary to Transfer all such Pledged Notes [or Applicable Ownership Interest (as specified in clause (A)
of the definition of such term) in the Treasury Portfolio,] or Pledged Treasury Securities, as the case may be, to the Purchase Contract Agent for the benefit of such Holder, in each case free and clear of the Pledge created hereby, for distribution
to such Holder. 
 Upon receipt of the proceeds upon the maturity of the Permitted Investments on the Purchase Contract Settlement Date, the
Collateral Agent shall (A) instruct the Securities Intermediary to pay the portion of such proceeds and deliver any certified or cashier’s checks received, in an aggregate amount equal to the Purchase Price, to the Company on the Purchase
Contract Settlement Date, and (B) instruct the Securities Intermediary to release any amounts in excess of the Purchase Price of the interest earned from such Permitted Investments to the Purchase Contract Agent for distribution to the such Holder.

 (b) [So long as a Tax Event Redemption shall not have occurred,] if a Holder of SPC Units notifies the Purchase Contract Agent as provided
in paragraph 5.4(a)(i) of the Purchase Contract Agreement of its intention to pay the Purchase Price in cash, but fails to make such payment as required by paragraph 5.4(a)(ii) of the Purchase Contract Agreement, such Holder shall be deemed to have
consented to the disposition of such Holder’s Pledged Notes in accordance with paragraph 5.4(a)(iii) of the Purchase Contract Agreement. 
 (c) If a Holder of Treasury SPC Units [or, if a Tax Event Redemption shall have occurred, a Holder of SPC Units,] notifies the Purchase Contract Agent as provided in paragraph 5.4(d)(i) of the Purchase Contract Agreement of its intention to
pay the Purchase Price in cash, but fails to make such payment as required by paragraph 5.4(d)(ii) of the Purchase Contract Agreement, such Holder shall be deemed to have elected to pay the Purchase Price in accordance with paragraph 5.4(d)(iii) of
the Purchase Contract Agreement. 
 (d) Prior to 3:00 p.m. (New York City time) on the fourth Business Day immediately preceding the Purchase
Contract Settlement Date, the Securities Intermediary shall deliver to the Purchase Contract Agent a notice, substantially in the form of Exhibit E hereto, stating (i) the amount of cash that it has received with respect to the Cash Settlement of
SPC Units and (ii) the amount of cash that it has received with respect to the Cash Settlement of Treasury SPC Units. 
 SECTION 5.6 Early
Settlement. 
 Upon receipt by the Collateral Agent of a notice from the Purchase Contract Agent that a Holder of Securities has elected
to effect Early Settlement of its obligations under the Purchase Contracts forming a part of such Securities in accordance with the terms of the Purchase Contracts and Section 5.9 of the Purchase Contract Agreement (which notice shall set 

  

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forth the number of such Purchase Contracts as to which such Holder has elected to effect Early Settlement), and that the Purchase Contract Agent has
received from such Holder, and paid to the Company as confirmed in writing by the Company, the related Early Settlement Amounts pursuant to the terms of the Purchase Contracts and the Purchase Contract Agreement and that all conditions to such Early
Settlement have been satisfied, then the Collateral Agent shall release from the Pledge, (1) Pledged Notes or [the appropriate Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio ] in
the case of a Holder of SPC Units or (2) Pledged Treasury Securities, in the case of a Holder of Treasury SPC Units, with a Value equal to the product of (x) the Stated Amount times (y) the number of Purchase Contracts as to which such Holder has
elected to effect Early Settlement, and shall instruct the Securities Intermediary to Transfer all such Pledged Notes or [the appropriate Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury
Portfolio ] or Pledged Treasury Securities, as the case may be, to the Purchase Contract Agent for the benefit of such Holder, in each case free and clear of the Pledge created hereby, for distribution to such Holder. A Treasury SPC Unit holder may
settle early only in integral multiples of [40] Purchase Contracts. 
 SECTION 5.7 Application of Proceeds Settlement. 
 (a) So long as a Tax Event Redemption has not occurred, if a Holder of SPC Units has not elected to make an effective Cash Settlement by notifying the
Purchase Contract Agent in the manner provided for in Section 5.4(a)(i) in the Purchase Contract Agreement, or has given such notice but failed to deliver the required cash prior to 11:00 A.M. (New York City time) on the fifth Business Day
immediately preceding the Purchase Contract Settlement Date, such Holder shall be deemed to have elected to pay for the shares of Common Stock to be issued under such Purchase Contracts from the Proceeds of the remarketing of the related Pledged
Notes. In such event, the Collateral Agent shall instruct the Securities Intermediary to Transfer the related Pledged Notes to the Remarketing Agent for remarketing. Upon receiving such Pledged Notes, the Remarketing Agent, pursuant to the terms of
the Remarketing Agreement, will use reasonable efforts to remarket such Pledged Notes on such date. The Remarketing Agent will deposit the entire amount of the Proceeds of such remarketing in the Collateral Account. On the Purchase Contract
Settlement Date, the Collateral Agent shall instruct the Securities Intermediary to apply a portion of the Proceeds from such remarketing equal to the aggregate principal amount of such Pledged Notes to satisfy in full such Holder’s obligations
to pay the Purchase Price to purchase the shares of Common Stock under the related Purchase Contracts. The Collateral Agent shall also instruct the Securities Intermediary to apply a portion of the Proceeds of such remarketing equal to $[.0625] per
Pledged Note to pay the Remarketing Agent for its services rendered in connection with the remarketing. The balance of the Proceeds from such remarketing, if any, shall be transferred to the Purchase Contract Agent for the benefit of such Holder for
distribution to such Holder. 
 If the Remarketing Agent advises the Collateral Agent in writing that there has been a Failed Remarketing,
thus resulting in an event of default under the Purchase Contract Agreement and hereunder, the Collateral Agent, for the benefit of the Company shall, at the written direction of the Company, dispose of the Pledged Notes in accordance with
applicable law and satisfy in full, from such disposition, such Holder’s obligations to pay the Purchase Price for the shares of PPL Corporation Common Stock. 
  

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 (b) If a Holder of Treasury SPC Units [or, if a Tax Event Redemption has occurred, a SPC Unit,] has not
elected to make an effective Cash Settlement by notifying the Purchase Contract Agent in the manner provided for in Section 5.4(d)(i) of the Purchase Contract Agreement, or has given such notice but failed to make such payment in the manner required
by Section 5.4(d)(ii) of the Purchase Contract Agreement, such Holder shall be deemed to have elected to pay for the shares of Common Stock to be issued under such Purchase Contracts from the Proceeds of the related Pledged Treasury Securities [(or
such Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio, as the case may be]. Upon maturity of the Pledged Treasury Securities [ or Applicable Ownership Interest (as specified in
clause (A) of the definition of such term) in the Treasury Portfolio, as the case may be], the Securities Intermediary, at the written direction of the Collateral Agent, shall invest the Cash Proceeds of the maturing Pledged Treasury Securities [ or
Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio, as the case may be,] in Permitted Investments [maturing on or prior to the Purchase Contract Settlement Date]. Without receiving any
instruction from any such Holder, the Collateral Agent shall apply the Proceeds of the related Pledged Treasury Securities [or Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio, as
the case may be], to the settlement of such Purchase Contracts on the Purchase Contract Settlement Date. In the event the sum of the Proceeds from the related Pledged Treasury Securities [or Applicable Ownership Interest (as specified in clause (A)
of the definition of such term) in the Treasury Portfolio, as the case may be], and the investment earnings from the investment in Permitted Investments exceeds the aggregate Purchase Price of the Purchase Contracts being settled thereby, the
Collateral Agent shall instruct the Securities Intermediary to distribute such excess, when received, to the Purchase Contract Agent for the benefit of such Holder for distribution to such Holder. 
 SECTION 5.8 [Tax Event Redemption. 
 If the Securities Intermediary receives notice from the Company or the Purchase Contract Agent that a Tax Event Redemption has occurred prior to the Purchase Contract Settlement Date, the Securities Intermediary, promptly after receipt of
such notice, shall apply the Redemption Amount to purchase the Treasury Portfolio and the Securities Intermediary shall credit the Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio to
the Collateral Account and shall transfer the Applicable Ownership Interest (as specified in clause (B) of the definition of such term) in the Treasury Portfolio to the Purchase Contract Agent for distribution to the Holders of the SPC Units. Upon
credit to the Collateral Account of the Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio having a Value equal to the aggregate principal amount of the Pledged Notes, the Securities
Intermediary shall release the Pledged Notes from the Collateral Account and shall promptly transfer the Pledged Notes to the Company.] 
  

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 SECTION 6. Voting Rights. 
 The Purchase Contract Agent may exercise, or refrain from exercising, any and all voting and other consensual rights pertaining to the Pledged Notes or
any part thereof for any purpose not inconsistent with the terms of this Agreement and in accordance with the terms of the Purchase Contract Agreement; provided, that the Purchase Contract Agent shall not exercise or shall not refrain from
exercising such right, as the case may be, if, in the judgment of the Purchase Contract Agent, such action would impair or otherwise have a material adverse effect on the value of all or any of the Pledged Notes; and provided, further, that the
Purchase Contract Agent shall give the Company and the Collateral Agent at least five Business Days’ prior written notice of the manner in which it intends to exercise, or its reasons for refraining from exercising, any such right. Upon receipt
of any notices and other communications in respect of any Pledged Notes, including notice of any meeting at which holders of the Notes are entitled to vote or solicitation of consents, waivers or proxies of holders of the Notes, the Collateral Agent
shall use reasonable efforts to send promptly to the Purchase Contract Agent such notice or communication, and as soon as reasonably practicable after receipt of a written request therefor from the Purchase Contract Agent, execute and deliver to the
Purchase Contract Agent such proxies and other instruments in respect of such Pledged Notes (in form and substance satisfactory to the Collateral Agent) as are prepared by the Purchase Contract Agent with respect to the Pledged Notes. 
 SECTION 7. Rights and Remedies. 
 SECTION 7.1 Rights and Remedies of the Collateral Agent. 
 (a) In addition to the rights and remedies specified in Sections
5.5 and 5.7 hereof or otherwise available at law or in equity, after an event of default (as specified in Section 7.1(b) below) hereunder, the Collateral Agent shall have all of the rights and remedies with respect to the Collateral of a secured
party under the UCC (whether or not the UCC is in effect in the jurisdiction where the rights and remedies are asserted) and the TRADES Regulations and such additional rights and remedies to which a secured party is entitled under the laws in effect
in any jurisdiction where any rights and remedies hereunder may be asserted. Without limiting the generality of the foregoing, such remedies may include, to the extent permitted by applicable law, (1) retention of the Pledged Notes, Pledged Treasury
Securities [or the appropriate Applicable Ownership Interest (as specified in clause (A) of the definition of such term), as the case may be,] in full satisfaction of the Holders’ obligations under the Purchase Contracts or (2) sale of the
Pledged Notes, Pledged Treasury Securities [or the appropriate Applicable Ownership Interest (as specified in clause (A) of the definition of such term), as the case may be] in one or more public or private sales and application of the proceeds in
full satisfaction of the Holders’ obligations under the Purchase Contracts. 
 (b) Without limiting any rights or powers otherwise
granted by this Agreement to the Collateral Agent, in the event the Collateral Agent is unable to make payments to the Company on account of [the appropriate Applicable Ownership Interest (as specified in clause (A) of the definition of such term)
in the Treasury Portfolio, or on account of ] principal payments of any Pledged Treasury Securities as provided in Section 3 hereof, in satisfaction of the Obligations of the Holder of [the SPC Units (if a Tax Event Redemption has occurred) of

  

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which such appropriate Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio or] the Holder of
the Treasury SPC Units of which such Pledged Treasury Securities are a part under the related Purchase Contracts, the inability to make such payments shall constitute an event of default hereunder and the Collateral Agent shall have and may
exercise, with reference to such Pledged Treasury Securities or the appropriate Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio, as applicable, and such Obligations of such Holder,
any and all of the rights and remedies available to a secured party under the UCC and the TRADES Regulations after default by a debtor, and as otherwise granted herein or under any other law. 
 (c) Without limiting any rights or powers otherwise granted by this Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably
authorized to receive and collect all payments of (i) the principal amount of the Applicable Ownership Interest (as specified in clause (A) of the definition of such term) in the Treasury Portfolio, (ii) the principal amount of the Pledged Notes and
(iii) the principal amount of the Pledged Treasury Securities subject, in each case, to the provisions of Section 3 hereof, and as otherwise granted herein. 
 (d) The Purchase Contract Agent individually and as attorney-in-fact for each Holder of Securities, and each Holder of Securities agrees that, from time to time, upon the written request of the Collateral Agent, or
the Purchase Contract Agent, such Holder shall execute and deliver such further documents and do such other acts and things as the Collateral Agent may reasonably request in order to maintain the Pledge, and the perfection and priority thereof, and
to confirm the rights of the Collateral Agent hereunder. The Purchase Contract Agent shall have no liability to any Holder for executing any documents or taking any such acts requested by the Collateral Agent hereunder, except for liability for its
own negligent acts, its own negligent failure to act or its own willful misconduct. 
 SECTION 7.2 [Tax Event Redemption. 

Upon the occurrence of a Tax Event Redemption prior to the Purchase Contract Settlement Date, the Redemption Price payable on the Tax Event Redemption
Date with respect to the Applicable Principal Amount shall be credited to the Collateral Account by the Indenture Trustee, on or prior to 12:30 p.m., New York City time on such Tax Event Redemption Date, by federal funds check or wire transfer of
immediately available funds. The Collateral Agent is hereby authorized to present the Pledged Notes for payment as may be required by their respective terms. Upon receipt of such funds, the Pledged Notes shall be released from the Collateral
Account. In the event such funds are credited to the Collateral Account, the Collateral Agent, at the written direction of the Company, shall instruct the Securities Intermediary to (a) apply an amount equal to the Redemption Amount of such
Redemption Price to purchase the Treasury Portfolio from the Quotation Agent for credit to the Collateral Account and (b) promptly remit the remaining portion of such Redemption Price, if any, to the Purchase Contract Agent for payment to the
Holders of SPC Units.] 
  

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 SECTION 7.3 Substitutions. 
 Whenever a Holder has the right to substitute Treasury Securities, Notes [or the appropriate Applicable Ownership Interest in the Treasury Portfolio, as
the case may be,] or securities entitlements to any of them, for financial assets held in the Collateral Account, such substitution shall not constitute a novation of the security interest created hereby. 
 SECTION 8. Representations and Warranties; Covenants. 
 SECTION 8.1 Representations and Warranties. 
 Each Holder from time to time, acting through the
Purchase Contract Agent as attorney-in-fact (it being understood that the Purchase Contract Agent shall not be liable for any representation or warranty made by or on behalf of a Holder), hereby represents and warrants to the Collateral Agent (with
respect to such Holder’s interest in the Collateral), which representations and warranties shall be deemed repeated on each day a Holder Transfers Collateral that: 
 (1) such Holder has the power to grant a security interest in and lien on the Collateral; 
 (2) such Holder is the sole beneficial owner of the Collateral and, in the case of Collateral delivered in physical form, is the sole
holder of such Collateral and is the sole beneficial owner of, or has the right to Transfer, the Collateral it Transfers to the Securities Intermediary for credit to the Collateral Account, free and clear of any security interest, lien, encumbrance,
call, liability to pay money or other restriction other than the security interest and lien granted under Section 2 hereof; 
 (3) upon the Transfer of the Collateral to the Securities Intermediary for credit to the Collateral Account, the Collateral Agent, for the benefit of the Company, will have a valid and perfected first priority security interest therein
(assuming that any central clearing operation or any securities intermediary or other entity not within the control of the Holder involved in the Transfer of the Collateral, including the Collateral Agent and the Securities Intermediary, gives the
notices and takes the action required of it hereunder and under applicable law for perfection of that interest and assuming the establishment and exercise of control pursuant to Section 4 hereof); and 
 (4) the execution and performance by the Holder of its obligations under this Agreement will not result in the creation of any security
interest, lien or other encumbrance on the Collateral other than the security interest and lien granted under Section 2 hereof or violate any provision of any existing law or regulation applicable to it or of any mortgage, charge, pledge, indenture,
contract or undertaking to which it is a party or which is binding on it or any of its assets. 
 SECTION 8.2 Covenants. 

The Holders from time to time, acting through the Purchase Contract Agent as their attorney-in-fact (it being understood that the Purchase Contract
Agent shall not be liable for any covenant made by or on behalf of a Holder), hereby covenant to the Collateral Agent that for so long as the Collateral remains subject to the Pledge: 
  

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 (1) neither the Purchase Contract Agent nor such Holders will create or purport to create
or allow to subsist any mortgage, charge, lien, pledge or any other security interest whatsoever over the Collateral or any part of it other than pursuant to this Agreement; and 
 (2) neither the Purchase Contract Agent nor such Holders will sell or otherwise dispose (or attempt to dispose) of the Collateral or any
part of it except for the beneficial interest therein, subject to the Pledge hereunder, transferred in connection with the Transfer of the Securities. 
 SECTION 9. The Collateral Agent and the Securities Intermediary. 
 It is hereby agreed as follows:

 SECTION 9.1 Appointment, Powers and Immunities. 
 The Collateral Agent shall act as agent for the Company hereunder with such powers as are specifically vested in the Collateral Agent by the terms of this Agreement, together with such other powers as are reasonably
incidental thereto. The Collateral Agent shall: 
 (1) have no duties or responsibilities except those expressly set forth in
this Agreement and no implied covenants or obligations shall be inferred from this Agreement against the Collateral Agent, nor shall the Collateral Agent be bound by the provisions of any agreement by any party hereto beyond the specific terms
hereof; 
 (2) not be responsible for any recitals contained in this Agreement, or in any certificate or other document
referred to or provided for in, or received by it under, this Agreement, the Securities or the Purchase Contract Agreement, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement (other than as
against the Collateral Agent), the Securities or the Purchase Contract Agreement or any other document referred to or provided for herein or therein or for any failure by the Company or any other Person (except the Collateral Agent) to perform any
of its obligations hereunder or thereunder or for the perfection, priority or, except as expressly required hereby, maintenance of any security interest created hereunder; 
 (3) not be required to initiate or conduct any litigation or collection proceedings hereunder (except pursuant to directions furnished
under Section 9.2 hereof, subject to Section 9.6 hereof); 
 (4) not be responsible for any action taken or omitted to be
taken by it hereunder or under any other document or instrument referred to or provided for herein or in connection herewith or therewith, except for its own negligence or willful misconduct; and 
  

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 (5) not be required to advise any party as to selling or retaining, or taking or
refraining from taking any action with respect to, any securities or other property deposited hereunder. 
 Subject to the foregoing, during
the term of this Agreement, the Collateral Agent shall take all reasonable action in connection with the safekeeping and preservation of the Collateral hereunder. 
 No provision of this Agreement shall require the Collateral Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder. In no event shall the
Collateral Agent be liable for any amount in excess of the Value of the Collateral. Notwithstanding the foregoing, each of the Collateral Agent and the Securities Intermediary in its individual capacity hereby waives any right of setoff,
bankers’ lien, liens or perfection rights as securities intermediary or any counterclaim with respect to any of the Collateral. 
 SECTION 9.2 Instructions of the Company. 
 The Company shall have the right, by one or more instruments in writing executed
and delivered to the Collateral Agent, to direct the time, method and place of conducting any proceeding for the realization of any right or remedy available to the Collateral Agent, or of exercising any power conferred on the Collateral Agent, or
to direct the taking or refraining from taking of any action authorized by this Agreement; provided, however, that (i) such direction shall not conflict with the provisions of any law or of this Agreement and (ii) the Collateral Agent shall be
adequately indemnified as provided herein. Nothing contained in this Section 9.2 shall impair the right of the Collateral Agent in its discretion to take any action or omit to take any action which it deems proper and which is not inconsistent with
such direction. 
 SECTION 9.3 Reliance by Collateral Agent and Securities Intermediary. 
 Each of the Securities Intermediary and the Collateral Agent shall be entitled to rely upon any certification, order, judgment, opinion, notice or other
written communication (including, without limitation, any thereof by telephone, telecopy, e-mail or similar electronic media, telex or facsimile) believed by it to be genuine and correct and to have been signed or sent by or on behalf of the proper
Person or Persons (without being required to determine the correctness of any fact stated therein) and upon advice and statements of legal counsel and other experts selected by the Collateral Agent and the Securities Intermediary. As to any matters
not expressly provided for by this Agreement, the Collateral Agent and the Securities Intermediary shall in all cases be fully protected in acting, or in refraining from acting, hereunder in accordance with instructions given by the Company in
accordance with this Agreement. 
 SECTION 9.4 Rights in Other Capacities. 
 The Collateral Agent and the Securities Intermediary and their affiliates may (without having to account therefor to the Company) accept deposits from,
lend money to, make their investments in and generally engage in any kind of banking, trust or other business with the 

  

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Purchase Contract Agent or the Securities Intermediary, as the case may be, any other Person interested herein and any Holder of Securities (and any of their
respective subsidiaries or affiliates) as if it were not acting as the Collateral Agent or the Securities Intermediary, as the case may be, and the Collateral Agent, the Securities Intermediary and their affiliates may accept fees and other
consideration from the Purchase Contract Agent and any Holder of Securities without having to account for the same to the Company; provided that each of the Securities Intermediary and the Collateral Agent covenants and agrees with the Company that
it shall not accept, receive or permit there to be created in favor of itself and shall take no affirmative action to permit there to be created in favor of any other Person, any security interest, lien or other encumbrance of any kind in or upon
the Collateral other than the lien created by the Pledge. 
 SECTION 9.5 Non-Reliance on Collateral Agent and Securities Intermediary.

 Neither the Securities Intermediary nor the Collateral Agent shall be required to keep itself informed as to the performance or
observance by the Purchase Contract Agent or any Holder of Securities of this Agreement, the Purchase Contract Agreement, the Securities or any other document referred to or provided for herein or therein or to inspect the properties or books of the
Purchase Contract Agent or any Holder of Securities. Neither the Collateral Agent nor the Securities Intermediary shall have any duty or responsibility to provide the Company with any credit or other information concerning the affairs, financial
condition or business of the Purchase Contract Agent or any Holder of Securities (or any of their respective affiliates) that may come into the possession of the Collateral Agent or the Securities Intermediary or any of their respective affiliates.

 SECTION 9.6 Compensation and Indemnity. 
 The Company agrees to: 
 (1) pay the Collateral Agent and the Securities Intermediary from
time to time such compensation as shall be agreed in writing between the Company and the Collateral Agent or the Securities Intermediary, as the case may be, for all services rendered by them hereunder; and 
 (2) indemnify the Collateral Agent and the Securities Intermediary for, and hold each of them harmless from and against, any loss,
liability or reasonable out-of-pocket expense incurred without negligence, willful misconduct or bad faith on its part, arising out of or in connection with the acceptance or administration of its powers and duties under this Agreement, including
the reasonable out-of-pocket costs and expenses (including reasonable fees and expenses of counsel) of defending itself against any claim or liability in connection with the exercise or performance of such powers and duties. 
 The Collateral Agent and the Securities Intermediary shall each promptly notify the Company of any third party claim which may give rise to indemnity
hereunder and give the Company the opportunity to participate in the defense of such claim with counsel reasonably satisfactory to the indemnified party, and no such claim shall be settled without the written consent of the Company, which consent
shall not be unreasonably withheld. 
  

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 SECTION 9.7 Failure to Act. 
 In the event of any ambiguity in the provisions of this Agreement or any dispute between or conflicting claims by or among the parties hereto or any other
Person with respect to any funds or property deposited hereunder, the Collateral Agent and the Securities Intermediary shall be entitled, after prompt notice to the Company and the Purchase Contract Agent, at its sole option, to refuse to comply
with any and all claims, demands or instructions with respect to such property or funds so long as such dispute or conflict shall continue, and the Collateral Agent and the Securities Intermediary shall not be or become liable in any way to any of
the parties hereto for its failure or refusal to comply with such conflicting claims, demands or instructions. The Collateral Agent and the Securities Intermediary shall be entitled to refuse to act until either: 
 (1) such conflicting or adverse claims or demands shall have been finally determined by a court of competent jurisdiction or settled by
agreement between the conflicting parties as evidenced in a writing satisfactory to the Collateral Agent or the Securities Intermediary; or 
 (2) the Collateral Agent or the Securities Intermediary shall have received security or an indemnity satisfactory to it sufficient to save it harmless from and against any and all loss, liability or reasonable out-of-
pocket expense which it may incur by reason of its acting. 
 The Collateral Agent and the Securities Intermediary may in addition elect to
commence an interpleader action or seek other judicial relief or orders as the Collateral Agent or the Securities Intermediary may deem necessary. Notwithstanding anything contained herein to the contrary, neither the Collateral Agent nor the
Securities Intermediary shall be required to take any action that is in its opinion contrary to law or to the terms of this Agreement, or which would in its opinion subject it or any of its officers, employees or directors to liability. 

SECTION 9.8 Resignation of Collateral Agent and Securities Intermediary. 
 (a) Subject to the appointment and acceptance of a successor Collateral Agent as provided below: 
 (1) the Collateral Agent may resign at any time by giving notice thereof to the Company and the Purchase Contract Agent as
attorney-in-fact for the Holders of Securities; 
 (2) the Collateral Agent may be removed at any time by the Company; and

 (3) if the Collateral Agent fails to perform any of its material obligations hereunder in any material respect for a period
of not less than 20 days after receiving written notice of such failure by the Purchase Contract Agent and such failure shall be continuing, the Collateral Agent may be removed by the Purchase Contract Agent. 
 The Purchase Contract Agent shall promptly notify the Company of any removal of the Collateral Agent pursuant to clause (3) of the immediately preceding
sentence. Upon any 

  

 - 22 - 

 
such resignation or removal, the Company shall have the right to appoint a successor Collateral Agent. If no successor Collateral Agent shall have been so
appointed and shall have accepted such appointment within 30 days after the retiring Collateral Agent’s giving of notice of resignation or such removal, then the retiring Collateral Agent may petition any court of competent jurisdiction for the
appointment of a successor Collateral Agent. The Collateral Agent shall be a bank which has an office in New York City with a combined capital and surplus of at least $50,000,000 and shall not be the Purchase Contract Agent or any of its affiliates.
Upon the acceptance of any appointment as Collateral Agent hereunder by a successor Collateral Agent, such successor Collateral Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring
Collateral Agent, and the retiring Collateral Agent shall take all appropriate action to transfer any money and property held by it hereunder (including the Collateral) to such successor Collateral Agent. The retiring Collateral Agent shall, upon
such succession, be discharged from its duties and obligations as Collateral Agent hereunder. After any retiring Collateral Agent’s resignation hereunder as Collateral Agent, the provisions of this Section 9 shall continue in effect for its
benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Collateral Agent. 
 (b) Subject to the
appointment and acceptance of a successor Securities Intermediary as provided below: 
 (1) the Securities Intermediary may
resign at any time by giving notice thereof to the Company and the Purchase Contract Agent as attorney- in-fact for the Holders of Securities; 
 (2) the Securities Intermediary may be removed at any time by the Company; and 
 (3) if the
Securities Intermediary fails to perform any of its material obligations hereunder in any material respect for a period of not less than 20 days after receiving written notice of such failure by the Purchase Contract Agent and such failure shall be
continuing, the Securities Intermediary may be removed by the Purchase Contract Agent. 
 The Purchase Contract Agent shall promptly notify
the Company of any removal of the Securities Intermediary pursuant to clause (3) of the immediately preceding sentence. Upon any such resignation or removal, the Company shall have the right to appoint a successor Securities Intermediary. If no
successor Securities Intermediary shall have been so appointed and shall have accepted such appointment within 30 days after the retiring Securities Intermediary’s giving of notice of resignation or such removal, then the retiring Securities
Intermediary may petition any court of competent jurisdiction for the appointment of a successor Securities Intermediary. The Securities Intermediary shall be a bank which has an office in New York City with a combined capital and surplus of at
least $50,000,000 and shall not be the Purchase Contract Agent or any of its affiliates. Upon the acceptance of any appointment as Securities Intermediary hereunder by a successor Securities Intermediary, such successor Securities Intermediary shall
thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Securities Intermediary, and the retiring Securities Intermediary shall take all appropriate action to transfer any money and property held by
it 

  

 - 23 - 

 
hereunder (including the Collateral) to such successor Securities Intermediary. The retiring Securities Intermediary shall, upon such succession, be
discharged from its duties and obligations as Securities Intermediary hereunder. After any retiring Securities Intermediary’s resignation hereunder as Securities Intermediary, the provisions of this Section 9 shall continue in effect for its
benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Securities Intermediary. 
 SECTION 9.9
Right to Appoint Agent or Advisor. 
 The Collateral Agent shall have the right to appoint agents or advisors in connection with any of
its duties hereunder, and the Collateral Agent shall not be liable for any action taken or omitted by, or in reliance upon the advice of, such agents or advisors selected in good faith. The appointment of agents pursuant to this Section 9.9 shall be
subject to prior consent of the Company, which consent shall not be unreasonably withheld. 
 SECTION 9.10 Survival. 
 The provisions of this Section 9 shall survive termination of this Agreement and the resignation or removal of the Collateral Agent or the Securities
Intermediary. 
 SECTION 9.11 Exculpation. 
 Anything contained in this Agreement to the contrary notwithstanding, in no event shall the Collateral Agent or the Securities Intermediary or their officers, directors, employees or agents be liable under this
Agreement to any third party for indirect, special, punitive, or consequential loss or damage of any kind whatsoever, including lost profits, whether or not the likelihood of such loss or damage was known to the Collateral Agent or the Securities
Intermediary, or any of them, incurred without any act or deed that is found to be attributable to gross negligence or willful misconduct on the part of the Collateral Agent or the Securities Intermediary. 
 SECTION 10. Amendment. 
 SECTION
10.1 Amendment Without Consent of Holders. 
 Without the consent of any Holders, the Company, the Collateral Agent, the Securities
Intermediary and the Purchase Contract Agent, at any time and from time to time, may amend this Agreement, in form satisfactory to the Company, the Collateral Agent, the Securities Intermediary and the Purchase Contract Agent, to: 
 (1) evidence the succession of another Person to the Company, and the assumption by any such successor of the covenants of the Company;

 (2) evidence and provide for the acceptance of appointment hereunder by a successor Collateral Agent, Securities
Intermediary or Purchase Contract Agent; 
 (3) add to the covenants of the Company for the benefit of the Holders, or
surrender any right or power herein conferred upon the Company, provided such covenants or such surrender do not adversely affect the validity, perfection or priority of the Pledge created hereunder; or 
  

 - 24 - 

 (4) cure any ambiguity (or formal defect), correct or supplement any provisions herein
which may be inconsistent with any other such provisions herein, or make any other provisions with respect to such matters or questions arising under this Agreement, provided such action shall not adversely affect the interests of the Holders.

 SECTION 10.2 Amendment With Consent of Holders. 
 With the consent of the Holders of not less than a majority of the Purchase Contracts at the time outstanding, by Act of such Holders delivered to the Company, the Purchase Contract Agent, the Securities Intermediary
and the Collateral Agent, the Company, the Purchase Contract Agent, the Securities Intermediary and the Collateral Agent may amend this Agreement for the purpose of modifying in any manner the provisions of this Agreement or the rights of the
Holders in respect of the Securities; provided, however, that no such supplemental agreement shall, without the unanimous consent of the Holders of each Outstanding Security adversely affected thereby: 
 (1) change the amount or type of Collateral underlying a Security, impair the right of the Holder of any Security to receive distributions
on the underlying Collateral or otherwise adversely affect the Holder’s rights in or to such Collateral; 
 (2) otherwise
effect any action that would require the consent of the Holder of each Outstanding Security affected thereby pursuant to the Purchase Contract Agreement if such action were effected by an agreement supplemental thereto; or 
 (3) reduce the percentage of Purchase Contracts the consent of whose Holders is required for any such amendment; 
 provided that if any amendment or proposal referred to above would adversely affect only the SPC Units or only the Treasury SPC Units, then only the
affected class of Holders( as of the record date, if any) for the Holders entitled to vote thereon will be entitled to vote on such amendment or proposal, and such amendment or proposal shall not be effective except with the consent of Holders of
not less than a majority of such class; provided, further, that the unanimous consent of the Holders of each outstanding Purchase Contract of such class affected thereby shall be required to approve any amendment or proposal specified in clauses (1)
through (3) above. 
 It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed
amendment, but it shall be sufficient if such Act shall approve the substance thereof. 
 SECTION 10.3 Execution of Amendments.

 In executing any amendment permitted by this Section, the Collateral Agent, the Securities Intermediary and the Purchase Contract Agent
shall be entitled to receive and (subject to Section 7.1 of the Purchase Contract Agreement with respect to the Purchase Contract Agent) 

  

 - 25 - 

 
shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and
that all conditions precedent, if any, to the execution and delivery of such amendment have been satisfied. 
 SECTION 10.4 Effect of
Amendments. 
 Upon the execution of any amendment under this Section, this Agreement shall be modified in accordance therewith, and such
amendment shall form a part of this Agreement for all purposes; and every Holder of Certificates theretofore or thereafter authenticated, executed on behalf of the Holders and delivered under the Purchase Contract Agreement shall be bound thereby.

 SECTION 10.5 Reference to Amendments. 
 Certificates authenticated, executed on behalf of the Holders and delivered after the execution of any amendment pursuant to this Section may, and shall if required by the Collateral Agent or the Purchase Contract
Agent, bear a notation in form approved by the Purchase Contract Agent and the Collateral Agent as to any matter provided for in such amendment. If the Company shall so determine, new Security Certificates so modified as to conform, in the opinion
of the Collateral Agent, the Purchase Contract Agent and the Company, to any such amendment may be prepared and executed by the Company and authenticated, executed on behalf of the Holders and delivered by the Purchase Contract Agent in accordance
with the Purchase Contract Agreement in exchange for Outstanding Security Certificates. 
 SECTION 11. Miscellaneous. 
 SECTION 11.1 No Waiver. 
 No failure on
the part of the Collateral Agent or any of its agents to exercise, and no course of dealing with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise
by the Collateral Agent or any of its agents of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative and are not exclusive of any
remedies provided by law. 
 SECTION 11.2 Governing Law. 
 THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 The Company, the Collateral Agent, the Securities Intermediary and the Holders from time to time of the Securities, acting through the Purchase Contract Agent as their attorney-in-fact, hereby submit to the nonexclusive jurisdiction of the
United States District Court for the Southern District of New York and of any New York state court sitting in New York City for the purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated
hereby. The Company, the Collateral Agent, the Securities Intermediary and the Holders from time to time of the Securities, acting through the Purchase Contract Agent as their attorney-in-fact, irrevocably waive, to the fullest extent permitted by
applicable law, any 

  

 - 26 - 

 
objection which they may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such
proceeding brought in such a court has been brought in an inconvenient forum. 
 SECTION 11.3 Notices. 
 All notices, requests, consents and other communications provided for herein (including, without limitation, any modifications of, or waivers or consents
under, this Agreement) shall be given or made in writing (including, without limitation, by telecopy) delivered to the intended recipient at the “Address for Notices” specified below its name on the signature pages hereof or, as to any
party, at such other address as shall be designated by such party in a notice to the other parties (or in the case of Holders, as may be made and deemed given as provided in Section 1.6 of the Purchase Contract Agreement). Except as otherwise
provided in this Agreement, all such communications shall be deemed to have been duly given when transmitted by telecopier or personally delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid.

 SECTION 11.4 Successors and Assigns. 
 This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the Company, the Collateral Agent, the Securities Intermediary and the Purchase Contract Agent, and the Holders
from time to time of the Securities, by their acceptance of the same, shall be deemed to have agreed to be bound by the provisions hereof and to have ratified the agreements of, and the grant of the Pledge hereunder by, the Purchase Contract Agent.

 SECTION 11.5 Counterparts. 
 This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Agreement by signing any such counterpart. 
 SECTION 11.6 Severability. 
 If any
provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in order to
carry out the intentions of the parties hereto as nearly as may be possible and (ii) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other
jurisdiction. 
 SECTION 11.7 Expenses, etc. 
 The Company agrees to reimburse the Collateral Agent and the Securities Intermediary for: 
 (1) all reasonable out-of-pocket costs and expenses of the Collateral Agent and the Securities Intermediary (including, without limitation, the reasonable fees and 

  

 - 27 - 

 
expenses of counsel to the Collateral Agent and the Securities Intermediary), in connection with (i) the negotiation, preparation, execution and delivery or
performance of this Agreement and (ii) any modification, supplement or waiver of any of the terms of this Agreement; 
 (2)
all reasonable costs and expenses of the Collateral Agent and the Securities Intermediary (including, without limitation, reasonable fees and expenses of counsel) in connection with (i) any enforcement or proceedings resulting or incurred in
connection with causing any Holder of Securities to satisfy its obligations under the Purchase Contracts forming a part of the Securities and (ii) the enforcement of this Section 11.7; and 
 (3) all transfer, stamp, documentary or other similar taxes, assessments or charges levied by any governmental or revenue authority in
respect of this Agreement or any other document referred to herein and all costs, expenses, taxes, assessments and other charges incurred in connection with any filing, registration, recording or perfection of any security interest contemplated
hereby. 
 SECTION 11.8 Security Interest Absolute. 
 All rights of the Collateral Agent and security interests hereunder, and all obligations of the Holders from time to time hereunder, shall be absolute and unconditional irrespective of: 
 (1) any lack of validity or enforceability of any provision of the Purchase Contracts or the Securities or any other agreement or
instrument relating thereto; 
 (2) any change in the time, manner or place of payment of, or any other term of, or any
increase in the amount of, all or any of the obligations of Holders of the Securities under the related Purchase Contracts, or any other amendment or waiver of any term of, or any consent to any departure from any requirement of, the Purchase
Contract Agreement or any Purchase Contract or any other agreement or instrument relating thereto; or 
 (3) any other
circumstance which might otherwise constitute a defense available to, or discharge of, a borrower, a guarantor or a pledgor. 
 SECTION
11.9 Notice of a Tax Event, Tax Event Redemption and Termination Event 
 Upon the occurrence of a Tax Event, a Tax Event Redemption or a
Termination Event, the Company shall deliver written notice to the Collateral Agent and the Securities Intermediary. Upon the written request of the Collateral Agent or the Securities Intermediary, the Company shall inform such party whether or not
a Tax Event, a Tax Event Redemption or a Termination Event has occurred. 
  

 - 28 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and
year first above written. 
  

									
	PPL CORPORATION	 		 	JPMORGAN CHASE BANK, N.A., as Purchase Contract Agent and as attorney-in-fact of the Holders from time to time of the Securities
					
	By:	 	  
	 		 	By:	 	  

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	
			
	Address for Notices:	 		 	Address for Notices:
			
	Attention:	 		 	Attention:
	Telecopy:	 		 	Telecopy:
			
	                                      
          , as Collateral Agent	 		 	                                      
          , as Securities Intermediary
					
	By:	 	  
	 		 	By:	 	  

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	
	  
 Address for Notices:
  
 Attention:
 Telecopy:
	 		 	  
 Address for Notices:
  
 Attention:
 Telecopy:

  

 - 29 - 

 EXHIBIT A 
 INSTRUCTION FROM 
 PURCHASE CONTRACT AGENT 
 TO COLLATERAL AGENT 
 (Establishment of Treasury SPC Units) 
  

			
	  

	  

	  

	  

	Attention:	 	  

	Telecopy:	 	  

  

	 	Re:	SPC Units of PPL Corporation (the “Company”) and PPL Capital Funding, Inc. 

 Please refer to the Pledge Agreement, dated as of                          (the
“Pledge Agreement”), among the Company, you, as Collateral Agent,
                            , as Securities Intermediary, and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the holders of SPC Units from time to time. Capitalized terms used herein but not defined shall have the meaning set forth in the Pledge Agreement. 
 We hereby notify you in accordance with Section 5.2 of the Pledge Agreement that the holder of securities named below (the “Holder”) has
elected to substitute $             Value of Treasury Securities or securities entitlements thereto in exchange for an equal Value of Pledged Notes and has delivered to the
undersigned a notice stating that the Holder has Transferred such Treasury Securities or securities entitlements thereto to the Securities Intermediary, for credit to the Collateral Account. 
 We hereby request that you instruct the Securities Intermediary, upon confirmation that such Treasury Securities or securities entitlements thereto have
been credited to the Collateral Account, to release to the undersigned an equal Value of Pledged Notes in accordance with Section 5.2 of the Pledge Agreement. [We also hereby confirm that no Tax Event Redemption has occurred.] 
  

			
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	  

	Name:	 	
	Title:	 	

 Date: 
 Please
print name and address of Holder electing to substitute Treasury Securities or securities entitlements thereto for the Pledged Notes: 
  

					
	  
	 		 	  

	Name	 		 	Social Security or other Taxpayer Identification Number, if any
			
	  
	 		 	
	Address	 		 	
			
	  
	 		 	
	  
  
	 		 	

 EXHIBIT B 
 INSTRUCTION 
 FROM COLLATERAL AGENT 
 TO SECURITIES INTERMEDIARY 
 (Establishment of Treasury SPC Units) 
  

			
	  

	  

	  

	 Attention:
	 	  

	 Telecopy:
	 	  

  

	 	Re:	SPC Units of PPL Corporation (the “Company”) Securities Account No.     . entitled
“                                , as Collateral Agent, Securities
Account (PPL Corporation)” (the “Collateral Account”) 

 Please refer to the Pledge Agreement, dated as of
                         (the “Pledge Agreement”), among the Company, you, as Securities Intermediary,
                    , as Purchase Contract Agent and as attorney-in-fact for the holders of SPC Units from time to time, and the
undersigned, as Collateral Agent. Capitalized terms used herein but not defined shall have the meanings set forth in the Pledge Agreement. 
 When you have confirmed that $             Value of Treasury Securities or securities entitlements thereto has been credited to the Collateral Account by or for the benefit
of                         , as Holder of SPC Units (the “Holder”), you are hereby instructed to release from
the Collateral Account an equal Value of Notes or securities entitlements thereto by Transfer to the Purchase Contract Agent. 
  

							
		 		 	  

				
		 		 	 By:
	 	  

		 		 	 Name:
	 	
		 		 	 Title:
	 	
				
	 Dated:
	 	  
	 		 	

 Please print name and address of Holder: 
  

					
			
	  
	 		 	  

	Name	 		 	Social Security or other Taxpayer Identification Number, if any
			
	  
	 		 	
	Address	 		 	
			
	  
	 		 	
			
	  
	 		 	

 EXHIBIT C 
 INSTRUCTION 
 FROM PURCHASE CONTRACT AGENT 
 TO COLLATERAL AGENT 
 (Reestablishment of SPC Units ) 
  

			
	Attention:	 	  

	Telecopy:	 	  

  

	 	Re:	SPC Units of PPL Corporation (the “Company”) and PPL Capital Funding, Inc. 

 Please refer to the Pledge Agreement, dated as of                          (the
“Pledge Agreement”), among the Company, you, as Collateral Agent,
                                , as Securities Intermediary, and the
undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders of SPC Units from time to time. Capitalized terms used herein but not defined shall have the meanings set forth in the Pledge Agreement. 
 We hereby notify you in accordance with Section 5.3(a) of the Pledge Agreement that the holder of securities listed below (the “Holder”) has
elected to substitute $             Value of Notes or securities entitlements thereto in exchange for $            
Value of Pledged Treasury Securities and has delivered to the undersigned a notice stating that the Holder has Transferred such Notes or securities entitlements thereto to the Securities Intermediary, for credit to the Collateral Account.

 We hereby request that you instruct the Securities Intermediary, upon confirmation that such Notes or securities entitlements thereto have
been credited to the Collateral Account, to release to the undersigned $             Value of Treasury Securities or securities entitlements thereto related to
             Treasury SPC Units of such Holder in accordance with Section 5.3(a) of the Pledge Agreement. [We also hereby confirm that no Tax Event Redemption has occurred.]

  

							
		 		 	 JPMORGAN CHASE BANK, N.A.

				
		 		 	 By:
	 	  

		 		 	 Name:
	 	
		 		 	 Title:
	 	
				
	 Dated:
	 	  
	 		 	

 Please print name and address of Holder electing to substitute Pledged Notes or securities entitlements thereto
for Pledged Treasury Securities: 
  

					
			
	  
	 		 	  

	Name	 		 	Social Security or other Taxpayer Identification Number, if any
			
	  
	 		 	
	Address	 		 	
			
	  
	 		 	
			
	  
	 		 	

 EXHIBIT D 
 INSTRUCTION 
 FROM COLLATERAL AGENT 
 TO SECURITIES INTERMEDIARY 
 (Reestablishment of SPC Units) 

					
	  
	 	
	  
	 	
	  
	 	
	  
	 	
	Attention:	 	  
	 	
	 Telecopy:
	 	  
	 	

  

	 	Re:	SPC Units of PPL Corporation (the “Company”) Securities Account No.     . entitled
“                    , as Collateral Agent, Securities Account (PPL Corporation)” (the “Collateral Account”)

 Please refer to the Pledge Agreement, dated as of
                         (the “Pledge Agreement”), among the Company, you, as Securities Intermediary,
                     , as Purchase Contract Agent and as attorney-in-fact for the holders of SPC Units from time to time, and the
undersigned, as Collateral Agent. Capitalized terms used herein but not defined shall have the meanings set forth in the Pledge Agreement. 
 When you have confirmed that $             Value of Notes or securities entitlements thereto has been credited to the Collateral Account by or for the benefit of
                    , as Holder of SPC Units (the “Holder”), you are hereby instructed to release from the Collateral Account
$             Value of Treasury Securities or securities entitlements thereto by Transfer to the Purchase Contract Agent. 
  

							
		 		 	  
  

				
		 		 	 By:
	 	  

		 		 	 Name:
	 	
	 Dated:
  
	 	  
	 	 Title:
	 	

 Please print name and address of Holder: 
  

					
	  
	 		 	  

	Name	 		 	Social Security or other Taxpayer Identification Number, if any

					
			
	  
	 		 	
	Address	 		 	
	  
  
	 		 	
	  
  
	 		 	

 EXHIBIT E 
 NOTICE OF CASH SETTLEMENT FROM SECURITIES INTERMEDIARY 
 TO PURCHASE CONTRACT AGENT 
 (Cash Settlement Amounts) 
 JPMorgan Chase Bank, N.A.

 4 New York Plaza 
 New York, New York 10004 
 Attention:                         

 Telecopy:
                         
  

	 	Re:	SPC Units of PPL Corporation (the “Company”) and PPL Capital Funding, Inc. 

 Please refer to the Pledge Agreement, dated as of                          (the
“Pledge Agreement”), among you, the Company,                     , as Collateral Agent and the undersigned, as Securities
Intermediary. Unless otherwise defined herein, terms defined in the Pledge Agreement are used herein as defined therein 
 In accordance with
Section 5.5(d) of the Pledge Agreement, we hereby notify you that as of 11:00 a.m., [on the fifth Business Day immediately preceding the Purchase Contract Settlement Date], we have received (i)
$             in immediately available funds paid in an aggregate amount equal to the Purchase Price owing to the Company on the Purchase Contract Settlement Date with respect to
                         SPC Units and (ii)
$             in immediately available funds paid in an aggregate amount equal to the Purchase Price owing to the Company on the Purchase Contract Settlement Date with respect to
                         Treasury SPC Units. 
  

							
		 		 	  

				
		 		 	 By:
	 	  

		 		 	 Name:
	 	
		 		 	 Title:
	 	
	 Dated:Remarketing Agreement

 EXHIBIT 4.19 
 PPL CORPORATION 
 PPL CAPITAL FUNDING, INC. 
 PPL Capital Funding, Inc.     % [Deferrable] Notes Due
                         
 Guaranteed as to payment of principal, 
 premium, if any, and interest by 
 PPL Corporation 
 REMARKETING
AGREEMENT 
 [Date] 
  

					
	[Remarketing Agent]	 	
	  
	 	
	  
	 	

 Ladies and Gentlemen: 
                                  (the
“Remarketing Agent”) is undertaking to remarket the                     % [Deferrable] Notes due
                         (the “Securities”), issued by PPL Capital Funding, Inc., a Delaware corporation
(“Capital Funding”), and unconditionally guaranteed as to payment of principal, premium, if any, and interest by PPL Corporation, a Pennsylvania corporation (the “Company”), pursuant to the Indenture, dated as of
                        , among Capital Funding, the Company and
            , as trustee (the “Indenture Trustee”) as amended and supplemented by the First Supplemental Indenture to the Indenture, dated
                        , relating to the Notes (as amended or supplemented, the “Indenture”). 
 The Remarketing (as defined below) of the Securities is provided for in an Officer’s Certificate relating to and establishing certain terms of the
Notes (the “Officer’s Certificate”), the Pledge Agreement and the Purchase Contract Agreement (as defined below).] 
 Section 1.
Definitions. 
 (a) Capitalized terms used and not defined in this Agreement shall have the meanings set forth in the Purchase
Contract Agreement, dated as of                          (the “Purchase Contract Agreement”), between the
Company and JPMorgan Chase Bank, N.A., a national banking association, as Purchase Contract Agent and Trustee (the “Purchase Contract Agent”), or in the Officer’s Certificate, as the case may be. 
 (b) As used in this Agreement, the following terms have the following meanings: 
 “Remarketed Securities” means the Securities subject to the Remarketing, as identified to the Remarketing Agent by the Purchase Contract Agent
after 11:00 a.m. on the fifth Business Day immediately preceding the Purchase Contract Settlement Date; 

 “Remarketing” means the remarketing of the Remarketed Securities pursuant to the Remarketing
Procedures; and 
 “Remarketing Procedures” means the procedures in connection with the Remarketing of the Securities described in
the Officer’s Certificate; 
 “Subsidiary” has the meaning set forth in Rule 405 under the Securities Act. 
 Section 2. Appointment and Obligations of the Remarketing Agent. 
 (a) The Company and Capital Funding hereby appoint                      as exclusive remarketing agent (the
“Remarketing Agent”), and                      hereby (1) accepts appointment as Remarketing Agent, for the purpose of (A)
Remarketing Remarketed Securities on behalf of the holders thereof and (B) performing such other duties as are assigned to the Remarketing Agent in the Remarketing Procedures, all in accordance with and pursuant to the Remarketing Procedures, and
(2) accepts and will perform all obligations of the Remarketing Agreement set forth in the Officers’ Certificate, the Pledge Agreement and the Purchase Contract Agreement. 
 (b) The Remarketing Agent agrees to (1) use reasonable efforts to remarket the Remarketed Securities tendered or deemed tendered to the Remarketing Agent
in the Remarketing, (2) notify the Company promptly of the Reset Rate and (3) carry out such other duties as are assigned to the Remarketing Agent in the Remarketing Procedures, all in accordance with the provisions of the Remarketing Procedures.

 (c) On the third Business Day immediately preceding the Purchase Contract Settlement Date (the “Remarketing Date”), the
Remarketing Agent shall use reasonable efforts to remarket, at a price at least equal to [100.25%] of the Stated Amount, the Remarketed Securities tendered or deemed tendered for purchase. 
 (d) If, as a result of the efforts described in Section 2(b), the Remarketing Agent determines that it will be able to remarket all Remarketed Securities
tendered or deemed tendered for purchase at a price at least equal to [100.25%] of the Stated Amount prior to 4:00 p.m. (New York City time) on the Remarketing Date, the Remarketing Agent shall set the Reset Rate at a rate per annum (rounded to the
nearest one-thousandth of one percent per annum) that the Remarketing Agent determines to be the lowest rate per annum that will enable it to remarket all of the Remarketed Securities tendered or deemed tendered for purchase at a price equal to
[100.25%] of the Stated Amount. 
  

 2 

 (e) upon receipt of the proceeds from the Remarketing, the Remarketing Agent shall: 
 (1) retain [25 basis points (.25%)] of the Stated Amount for the performance of its services as Remarketing Agent hereunder; and 
 (2) remit to the Collateral Agent all excess proceeds of the Remarketed Securities subject to the Pledge Agreement. 
 (f) If none of the holders of Remarketed Notes elects to have Remarketed Securities remarketed in the Remarketing, the Remarketing Agent shall determine
the rate that would have been established had a Remarketing been held on the Remarketing Date, and such rate shall be the Reset Rate. 
 (g)
If, by 4:00 p.m. (New York City time) on the Remarketing Date, the Remarketing Agent is unable to remarket all Remarketed Securities tendered or deemed tendered for purchase, a failed Remarketing (“Failed Remarketing”) shall be deemed to
have occurred, and the Remarketing Agent shall so advise by telephone DTC, the Indenture Trustee and the Company. In the event of a Failed Remarketing, the Reset Rate shall equal the Two-Year Benchmark Treasury rate plus the Applicable Margin.

 (h) Provided that there has not been a Failed Remarketing, by approximately 4:30 p.m. (New York City time) on the Remarketing Date, the
Remarketing Agent shall advise, by telephone: 
 (1) DTC, the Indenture Trustee and the Company of the Reset Rate determined in the
Remarketing and the number of Remarketed Securities sold in the Remarketing; 
 (2) each purchaser (or the Depositary Participant thereof) of
Remarketed Securities of the Reset Rate and the number of Remarketed Securities such purchaser is to purchase; and 
 (3) each purchaser to
give instructions to the Depositary Participant to pay the purchase price on the Purchase Contract Settlement Date in same day funds against delivery of the Remarketed Securities purchased through the facilities of DTC. 
 Section 3. Representations and Warranties of the Company and Capital Funding. 
 The Company represents and warrants (i) on and as of the date hereof, (ii) on and as of the date the Prospectus Supplement or other Remarketing Materials (each as defined in Section 3(a) below) are first distributed
in connection with the Remarketing (the “Commencement Date”), (iii) on and as of the Remarketing Date, and (iv) on and as of the Purchase Contract Settlement Date that: 
 (a) The conditions for use of Form S-3, as set forth in the General Instructions thereto, have been satisfied. 
  

 3 

 (b) A registration statement on Form S-3 (File No.
            ) and an amendment or amendments thereto with respect to the initial offering of the Notes has (i) been prepared by the Company in conformity with the requirements of the
Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations (the “Rules and Regulations”) of the Securities and Exchange Commission (the “Commission”) thereunder; (ii) been filed with the
Commission under the Securities Act, and (iii) become effective under the Securities Act; a registration statement on Form S-3, if required to be filed in connection with the Remarketing also may be prepared by the Company in conformity with the
requirements of the Securities Act and the Rules and Regulations and filed with the Commission under the Securities Act; and the Indenture has been qualified under the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”).
Copies of such registration statement or registration statements that have become effective and the amendment or amendments to such registration statements have been delivered by the Company to you. 
 As used in this Agreement, “Effective Time” means the date and time as of which the last of such registration statements that have become
effective or may be filed, or the most recent post-effective amendment thereto, if any, was declared effective by the Commission; 
 “Effective Date” means the date of the Effective Time of such last registration statement; 
 “Preliminary
Prospectus” means each prospectus included in such last registration statement, or amendment thereto, before it became effective under the Securities Act and any prospectus filed by the Company with your consent pursuant to Rule 424(a) of the
Rules and Regulations; 
 “Registration Statement” means such last registration statement, as amended at its Effective Time,
including documents incorporated by reference therein at such time and, if applicable, all information contained in the final prospectus filed with the Commission pursuant to Rule 424(b) of the Rules and Regulations, including any information deemed
to be part of such Registration Statement as of the Effective Time pursuant to paragraph (b) of Rule 430A of the Rules and Regulations; and 
 “Prospectus” means such final prospectus, as first filed pursuant to Rule 424(b) of the Rules and Regulations. 
 Reference made herein to any Preliminary Prospectus, the Prospectus or any other information furnished by the Company to the Remarketing Agent for distribution to investors in connection with the Remarketing (the “Remarketing
Materials”) shall be deemed to refer to and include any documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act as of the date of such Preliminary Prospectus or the Prospectus, as the case may be,
or, in the case of Remarketing Materials, referred to as incorporated by reference therein, and any reference to any amendment or supplement to any Preliminary Prospectus, the Prospectus or the Remarketing Materials shall be deemed to refer to and
include any document filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), after the date of such Preliminary Prospectus or the Prospectus incorporated by reference therein pursuant to Item 12 of Form S-3 or, if
so incorporated, the Remarketing Materials, as the case may be; and any reference to any amendment to the Registration Statement shall be deemed to include any 

  

 4 

 
annual report of the Company filed with the Commission pursuant to Section 13(a) or 15(d) of the Exchange Act after the Effective Time that is incorporated
by reference in the Registration Statement. 
 (c) The Commission has not issued an order preventing or suspending the use of the
Registration Statement, any Preliminary Prospectus, the Prospectus or the Remarketing Materials. 
 (d) The Registration Statement, as of the
Effective Date, conformed (and the Prospectus and any further amendments or supplements to the Registration Statement or the Prospectus, when they become effective or are filed with the Commission, as the case may be, will conform) in all respects
to the requirements of the Securities Act and the Rules and Regulations, and the Registration Statement, the Prospectus and the Remarketing Materials do not and will not, as of the Effective Date (as to the Registration Statement and any amendment
thereto), as of the applicable filing date (as to the Prospectus and any amendment or supplement thereto) and as of the Commencement Date, Remarketing Date and Purchase Contract Settlement Date (as to any Remarketing Materials) contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided that no representation and warranty is made as to the statement of eligibility and
qualification on Form T-1 of the Indenture Trustee under the Trust Indenture Act, or as to information contained in or omitted from the Registration Statement, the Prospectus or the Remarketing Materials in reliance upon and in conformity with
written information furnished to the Company by the Remarketing Agent specifically for inclusion therein. The Indenture conforms in all material respects to the requirements of the Trust Indenture Act and the applicable rules and regulations
thereunder. 
 (e) The documents incorporated by reference in the Prospectus, when they became effective or were filed with the Commission,
as the case may be, conformed in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations of the Commission thereunder, and none of such documents contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and any further documents so filed and incorporated by reference in the Prospectus, when such
documents become effective or are filed with Commission, as the case may be, will conform in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations of the Commission
thereunder and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. 
 (f) Subsequent to the date of the latest consolidated financial statements included or incorporated by reference in the Prospectus or in any Remarketing
Materials, there has not been any material adverse change in the financial position or results of operations of the Company and its subsidiaries taken as a whole, except in each case as set forth in or contemplated by the Prospectus or any
Remarketing Materials. 
  

 5 

 (g) The certificate delivered pursuant to paragraph (e) of Section 6 hereof in connection with the
issuance and sale of the Remarketed Notes was on the dates on which it was delivered, or will be on the dates on which it is to be delivered, in all material respects true and complete. 
 [Capital Funding Representations, as Applicable] 
 Section 4. Fees. 
 For the performance of its services as Remarketing Agent hereunder, the Remarketing Agent shall
retain from the proceeds of the Remarketing an amount equal to [25 basis points (.25%)] of the [$25] Stated Amount of the Remarketed Securities. 
 Section 5. Covenants of the Company and Capital Funding. 
 Each of the Company and Capital Funding covenant and agree
as follows: 
 (a) (1) To prepare any registration statement or prospectus, if required, in connection with the Remarketing, in a form
approved by the Remarketing Agent and to file any such prospectus pursuant to the Securities Act within the period required by the Rules and Regulations; 
 (2) to advise the Remarketing Agent, promptly after it receives notice thereof, of the time when any amendment to the Registration Statement has been filed or becomes effective or any supplement to the Prospectus or
any amended Prospectus has been filed and to furnish the Remarketing Agent with copies thereof; 
 (3) to file promptly all reports and any
definitive proxy or information statements required to be filed by it with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus and for so long as the delivery of a prospectus is
required in connection with the offering or sale of the Remarketed Securities; 
 (4) to advise the Remarketing Agent, promptly after it
receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of the Prospectus, of the suspension of the qualification of any of the Remarketed Securities for offering or sale in any
jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by the Commission for the amending or supplementing of the Registration Statement or the Prospectus or for additional information, and, in the
event of the issuance of any stop order or of any order preventing or suspending the use of any Prospectus or suspending any such qualification, to use promptly its best efforts to obtain its withdrawal. 
 (b) To furnish promptly to the Remarketing Agent and to counsel to the Remarketing Agent a signed copy (or true conformed copy) of the Registration
Statement as originally filed with the Commission, and each amendment thereto filed with the Commission, including all consents and exhibits filed therewith. 
  

 6 

 (c) To furnish the Remarketing Agent in New York City such number of the following documents as the
Remarketing Agent shall request (i) conformed copies of the Registration Statement as originally filed with the Commission and each amendment thereto (in each case excluding exhibits other than this Agreement and the Indenture); (ii) the Prospectus
and any amended or supplemented Prospectus; (ii) any document incorporated by reference in the Prospectus (excluding exhibits thereto); and (iv) any Remarketing Materials; and, if the delivery of a prospectus is required at any time in connection
with the Remarketing and if at such time any event shall have occurred as a result of which the Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made when such Prospectus is delivered, not misleading, or if for any other reason it shall be necessary during such same period to amend or supplement the
Prospectus or to file under the Exchange Act any document incorporated by reference in the Prospectus in order to comply with the Securities Act or the Exchange Act, to notify the Remarketing Agent and, upon its request, to file such document and to
prepare and furnish without charge to the Remarketing Agent and to any dealer in securities as many copies as the Remarketing Agent may from time to time reasonably request of an amended or supplemented Prospectus which will correct such statement
or omission or effect such compliance; provided that the expense of preparing and filing any such amendment or supplement (i) which is necessary in connection with such a delivery of a prospectus more than nine months after the Remarketing Date or
(ii) which relates solely to the activities of the Remarketing Agent shall be borne by the Remarketing Agent. 
 (d) To file promptly with
the Commission any amendment to the Registration Statement or the Prospectus or any supplement to the Prospectus that is required by the Securities Act or requested by the Commission. 
 (e) Prior to filing with the Commission (i) any amendment to the Registration Statement or supplement to the Prospectus or any document incorporated by
reference in the Prospectus or (ii) any Prospectus pursuant to Rule 424 of the Rules and Regulations, to furnish a copy thereof to the Remarketing Agent and counsel to the Remarketing Agent; and not to file any such amendment or supplement which
shall be reasonably objected to in writing by the Remarketing Agent promptly after reasonable notice. 
 (f) As soon as practicable, but in
any event not later than 15 months, after the Effective Date of the Registration Statement, to make “generally available to its security holders” an “earnings statement” (which need not be audited) covering a period of at least
twelve months beginning after the Effective Date which will satisfy the provisions of Section 11(a) of the Securities Act and the Rules and Regulations (including, at the option of the Company, Rule 158). The terms “generally available to its
security holders” and “earnings statement” shall have the meanings set forth in Rule 158 of the Rules and Regulations. 
 (g)
To take such action as the Remarketing Agent may reasonably request in order to qualify the Remarketed Securities for offer and sale under the securities or “blue sky” laws of such jurisdictions as the Remarketing Agent may reasonably
request; provided that the Company shall not be required to qualify as a foreign corporation in any State, to consent to service of process in any State other than with respect to claims arising out of the offering or sale of the Remarketed
Securities, or to meet any other requirement in connection with this paragraph (g) deemed by the Company to be unduly burdensome. 
  

 7 

 (h) To pay (1) the costs incident to the preparation and printing of the Registration Statement,
Prospectus and any Remarketing Materials and any amendments or supplements thereto; (2) the costs of distributing the Registration Statement, Prospectus and any Remarketing Materials and any amendments or supplements thereto; (3) the fees and
expenses of qualifying the Remarketed Securities under the securities laws of the several jurisdictions as provided in Section 5(g) and of preparing, printing and distributing a Blue Sky Memorandum (including related fees and expenses of counsel to
the Remarketing Agent); (4) all other costs and expenses incident to the performance of the obligations of the Company, hereunder; and (5) the reasonable fees and expenses of counsel to the Remarketing Agent in connection with their duties
hereunder. 
 Section 6. Conditions to the Remarketing Agent’s Obligations. 
 The obligations of the Remarketing Agent hereunder are subject to the following conditions: 
 (a) The Prospectus shall have been timely filed with the Commission; no stop order suspending the effectiveness of the Registration Statement or any part
thereof or suspending the qualification of the Indenture shall have been issued and no proceeding for that purpose shall have been initiated or threatened by the Commission; and any request of the Commission for inclusion of additional information
in the Registration Statement or the Prospectus or otherwise shall have been complied with. 
 (b) Since the respective dates as of which
information is given in the Registration Statement and the Prospectus, (i) there shall not have been any material adverse change in the financial position or results of operations of the Company and its subsidiaries taken as a whole, that, in the
judgment of the Remarketing Agent, materially impairs the investment quality of the Notes, in each case other than as set forth in or contemplated by the Registration Statement or Prospectus. 
 (c) The representations and warranties of the Company and Capital Funding contained herein shall be true and correct in all material respects on and as
of the Remarketing Date, and the Company shall have performed in all material respects all covenants and agreements herein contained to be performed on its part at or prior to the Remarketing Date. 
 (d) The Company shall have furnished to the Remarketing Agent a certificate, dated the Remarketing Date, of [the President or a Vice President and a
financial or accounting officer of the Company] stating that to the best of their knowledge after reasonable investigation: 
 (i) no order
suspending the effectiveness of the Registration Statement or prohibiting the sale of the Remarketed Notes is in effect, and no proceedings for such purpose are pending before or, to the knowledge of such officers, threatened by the Commission;

 (ii) the representations and warranties of the Company in Section 3 are true and correct in all material respects on and as of the
Remarketing Date and the Company has performed in all material respects all covenants and agreements contained herein to be performed on its part at or prior to the Remarketing Date; 
  

 8 

 (iii) the Registration Statement, as of its Effective Date, and the Prospectus and the Remarketing
Materials, as of their respective dates, did not contain any untrue statement of a material fact and did not omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading. 
 (e) On the Remarketing Date, the Remarketing Agent shall have received a letter addressed to the Remarketing Agent and dated such date, in form and
substance satisfactory to the Remarketing Agent, of Ernst & Young LLP, or such other firm of nationally recognized independent public accountants satisfactory to the Remarketing Agent, containing statements and information of the type ordinarily
included in accountants’ “comfort letters” with respect to certain financial information contained in the Prospectus and in the Remarketing Materials. 
 (f) Counsel to the Company shall have furnished to the Remarketing Agent its opinion letter or opinion letters, as the case may be, addressed to the Remarketing Agent and dated the Remarketing Date, in form and
substance satisfactory to the Remarketing Agent as set forth as Exhibit A hereto. 
 [(g) On or after the execution and delivery of this
Agreement, no downgrading shall have occurred in the rating accorded the Company’s debt securities by any “nationally recognized statistical rating organization”, as that term is defined by the Commission for purposes of Rule
436(g)(2) under the Securities Act.] 
 Section 7. Indemnification and Contribution. 
 (a) The Company and Capital Funding agree that they will jointly and severally indemnify and hold harmless the Remarketing Agent and each person, if any,
who controls the Remarketing Agent within the meaning of Section 15 of the Securities Act, against any and all loss, expense, claim, damage or liability to which, jointly or severally, the Remarketing Agent or such controlling person may become
subject, under the Securities Act or otherwise, insofar as such loss, expense, claim, damage or liability (or actions in respect thereof) arises out of or is based upon any untrue statement or alleged untrue statement of any material fact contained
in the Registration Statement, the Prospectus, the Remarketing Materials or any amendment or supplement to any thereof, or arises out of or is based upon the omission or alleged omission to state therein any material fact required to be stated
therein or necessary to make the statements therein not misleading; and, except as hereinafter in this Section provided, the Company and Capital Funding agree to reimburse the Remarketing Agent and each person who controls the Remarketing Agent as
aforesaid for any reasonable legal or other expenses incurred by the Remarketing Agent or such controlling person in connection with investigating or defending any such loss, expense, claim, damage or liability; provided, however, that
neither the Company nor Capital Funding shall be liable in any such case to the extent that any such loss, expense, claim, damage or liability arises out of or is based on an untrue statement or alleged untrue statement or omission or alleged
omission made in any such document in reliance upon, and in conformity with, written information furnished to Capital Funding or the Company by or through the Remarketing Agent expressly for use in any such document or arises out of, or is based on,

  

 9 

 
statements in or omissions from that part of the Registration Statement which shall constitute the Statement of Eligibility under the Trust Indenture Act of
any trustee; and provided further, that with respect to any untrue statement or alleged untrue statement or omission or alleged omission made in any prospectus or supplement, the indemnity agreement contained in this subsection (a) shall not
inure to the benefit of the Remarketing Agent (or to the benefit of any person controlling the Remarketing Agent), if a copy of the Prospectus (not including documents incorporated by reference therein) was not sent or given to such person at or
prior to the written confirmation of the sale of the Remarketed Securities to such person. 
 (b) The Remarketing Agent agrees that it will
indemnify and hold harmless the Company and Capital Funding, their officers and directors, and each of them, and each person, if any, who controls the Company and Capital Funding within the meaning of Section 15 of the Securities Act, against any
loss, expense, claim, damage or liability to which it or they may become subject, under the Securities Act or otherwise, insofar as such loss, expense, claim, damage or liability (or actions in respect thereof) arises out of or is based on any
untrue statement or alleged untrue statement of any material fact contained in the Registration Statement, the Prospectus, the Remarketing Materials or any amendment or supplement to any thereof, or arises out of or is based upon the omission or
alleged omission to state therein any material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, and only to the extent, that such untrue statement or alleged untrue statement
or omission or alleged omission was made in any such document in reliance upon, and in conformity with, written information furnished to Capital Funding or the Company by or through the Remarketing Agent expressly for use in any such document; and,
except as hereinafter in this Section provided, the Remarketing Agent agrees to reimburse the Company and Capital Funding, their officers and directors, and each of them, and each person, if any, who controls the Company and Capital Funding within
the meaning of Section 15 of the Securities Act, for any reasonable legal or other expenses incurred by it or them in connection with investigating or defending any such loss, expense, claim, damage or liability. 
 (c) Upon receipt of notice of the commencement of any action against an indemnified party, the indemnified party shall, with reasonable promptness, if a
claim in respect thereof is to be made against an indemnifying party under its agreement contained in this Section 7, notify such indemnifying party in writing of the commencement thereof; but the omission so to notify an indemnifying party shall
not relieve it from any liability which it may have to the indemnified party otherwise than under its agreement contained in this Section 7. In the case of any such notice to an indemnifying party, it shall be entitled to participate at its own
expense in the defense, or if it so elects, to assume the defense, of any such action, but, if it elects to assume the defense, such defense shall be conducted by counsel chosen by it and satisfactory to the indemnified party and to any other
indemnifying party, defendant in the suit. In the event that any indemnifying party elects to assume the defense of any such action and retain such counsel, the indemnified party shall bear the fees and expenses of any additional counsel retained by
it. No indemnifying party shall be liable in the event of any settlement of any such action effected without its consent except as provided in Section 7(e) hereof. Each indemnified party agrees promptly to notify each indemnifying party of the
commencement of any litigation or proceedings against it in connection with the issue and sale of the Remarketed Securities. 
  

 10 

 (d) If the Remarketing Agent or any person entitled to indemnification by the terms of subsection (a) of
this Section 7 shall have given notice to the Company and Capital Funding of a claim in respect thereof pursuant to Section 7(c) hereunder, and if such claim for indemnification is thereafter held by a court to be unavailable for any reason other
than by reason of the terms of this Section 7 or if such claim is unavailable under controlling precedent, the Remarketing Agent or such person shall be entitled to contribution from the Company and Capital Funding for liabilities and expenses,
except to the extent that contribution is not permitted under Section 11(f) of the Securities Act. In determining the amount of contribution to which the Remarketing Agent or such person is entitled, there shall be considered the relative benefits
received by the Remarketing Agent or such person and the Company and Capital Funding from the offering of the Remarketed Securities that were the subject of the claim for indemnification (taking into account the portion of the proceeds realized by
each), the Remarketing Agent or person’s relative knowledge and access to information concerning the matter with respect to which the claim was asserted, the opportunity to correct and prevent any statement or omission, and any other equitable
considerations appropriate under the circumstances. The Company and Capital Funding and the Remarketing Agent agree that it would not be equitable if the amount of such contribution were determined by pro rata or per capita allocation. 

(e) No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 7
(whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party and all liability arising out of such litigation,
investigation, proceeding or claim, and (ii) does not include a statement as to or an admission of fault, culpability or the failure to act by or on behalf of any indemnified party. 
 (f) The indemnity and contribution provided for in this Section 7 and the representations and warranties of the Company, Capital Funding and the
Remarketing Agent shall remain operative and in full force and effect regardless of (i) any investigation made by or on behalf of the Remarketing Agent or any person controlling the Remarketing Agent, the Company, its directors or officers, Capital
Funding or any person controlling Capital Funding, (ii) acceptance of any Remarketed Securities and payment therefor under this Agreement, and (iii) any termination of this Agreement. 
  

 11 

 Section 8. Resignation and Removal of the Remarketing Agent. 
 The Remarketing Agent may resign and be discharged from its duties and obligations hereunder, and the Company may remove the Remarketing Agent, by giving
15 days’ prior written notice, in the case of a resignation, to the Company, DTC and the Indenture Trustee and, in the case of a removal, the removed Remarketing Agent, DTC and the Indenture Trustee; provided however, that no such resignation
nor any such removal shall become effective until the Company shall have appointed at least one nationally recognized broker-dealer as successor Remarketing Agent and such successor Remarketing Agent shall have entered into a remarketing agreement
with the Company, in which it shall have agreed to conduct the Remarketing in accordance with the Remarketing Procedures. 
 In any such
case, the Company will use its reasonable efforts to appoint a successor Remarketing Agent and enter into such a remarketing agreement with such person as soon as reasonably practicable. The provisions of Sections 4, 5(h) and 7 shall survive the
resignation or removal of any Remarketing Agent pursuant to this Agreement. 
 Section 9. Dealing in the Remarketed Securities. 
 The Remarketing Agent, when acting as a Remarketing Agent or in its individual or any other capacity, may, to the extent permitted by law, buy, sell, hold
and deal in any of the Remarketed Securities. The Remarketing Agent may exercise any vote or join in any action which any beneficial owner of Remarketed Securities may be entitled to exercise or take pursuant to the Indenture with like effect as if
it did not act in any capacity hereunder. The Remarketing Agent, in its individual capacity, either as principal or agent, may also engage in or have an interest in any financial or other transaction with the Company as freely as if it did not act
in any capacity hereunder. 
 Section 10. Remarketing Agent’s Performance; Duty of Care. 
 The duties and obligations of the Remarketing Agent shall be determined solely by the express provisions of this Agreement and the Indenture. No implied
covenants or obligations of or against the Remarketing Agent shall be read into this Agreement or the Indenture. In the absence of bad faith on the part of the Remarketing Agent, the Remarketing Agent may conclusively rely upon any document
furnished to it, which purports to conform to the requirements of this Agreement or the Indenture as to the truth of the statements expressed in any of such documents. The Remarketing Agent shall be protected in acting upon any document or
communication reasonably believed by it to have been signed, presented or made by the proper party or parties. The Remarketing Agent, acting under this Agreement, shall incur no liability to the Company or to any holder of Remarketed Securities in
its individual capacity or as Remarketing Agent for any action or failure to act, on its part in connection with a Remarketing or otherwise, except if such liability is judicially determined to have resulted from the gross negligence or willful
misconduct on its part. 
  

 12 

 Section 11. Termination. 
 This Agreement shall terminate as to the Remarketing Agent on the effective date of the resignation or removal of the Remarketing Agent pursuant to Section 8. In addition, this Agreement may be terminated (A) by the
Company by notifying the Remarketing Agent at any time before the time when the Remarketed Securities are first generally offered by the Remarketing Agent to dealers by letter or telegram, or (B) by the Remarketing Agent by notifying the Company at
or prior to 10:00 a.m. (New York City time) on the Remarketing Date by letter or telegram if, 
 (a) in the judgement of the Remarketing
Agent the sale and delivery of the Remarketed Securities is rendered impracticable or inadvisable because: 
 (1) there has been any
suspension or limitation of trading in securities generally on the New York Stock Exchange, or any setting of minimum or maximum prices for trading on such exchange, or any suspension or limitation of trading of any securities of the Company or
Capital Funding on any exchange or in the over-the-counter market; or a general banking moratorium has been declared by Federal or New York authorities; 
 (2) any event shall have occurred or shall exist which makes untrue or incorrect in any material respect any statement or information contained in the Registration Statement or Prospectus or which is not reflected in
the Registration Statement or Prospectus but should be reflected therein in order to make the statements or information contained therein not misleading in any material respect, and such untrue or incorrect statement or information is not corrected
in an amendment or supplement to the Registration Statement or Prospectus, or 
 (b) prior to that time, any of the events described in
Sections 6(b) [or (g)] shall have occurred. 
 If this Agreement is terminated pursuant to any of the provisions hereof, except as otherwise
provided herein, the Company shall not be under any liability to the Remarketing Agent and the Remarketing Agent shall not be under any liability to the Company, except that (a) if this Agreement is terminated by the Remarketing Agent because of any
failure or refusal on the part of the Company to comply with the terms or to fulfill any of the conditions of this Agreement, the Company will reimburse the Remarketing Agent for all of its out-of-pocket expenses (including the fees and
disbursements of its counsel) reasonably incurred by it, and (b) if the Remarketing Agent failed or refused to purchase the Remarketed Securities hereunder, without some reason sufficient hereunder to justify the cancellation or termination of its
obligations hereunder, the Remarketing Agent shall not be relieved of liability to the Company for damages occasioned by its default. 
 Section 12.
Notices. 
 All statements, requests, notices and agreements hereunder shall be in writing, and: 
 (a) if to the Remarketing Agent, shall be delivered or sent by mail, telex or facsimile transmission to
                                 Attention:
                                 ; 
  

 13 

 (b) if to the Company or Capital Funding, shall be delivered or sent by mail, telex or facsimile
transmission to Two North Ninth Street, Allentown, Pennsylvania 18101-1179, Attention: Treasurer. (Fax: (610) 774-            ). 
 Any such statements, requests, notices or agreements shall take effect at the time of receipt thereof. 
 Section 13. Persons Entitled to Benefit of Agreement. 
 This Agreement shall inure to the benefit of and be binding upon the Remarketing Agent, the Company, Capital Funding and their respective successors. This Agreement and the terms and provisions hereof are for the sole benefit of only those
persons, except that (x) the representations, warranties, indemnities and agreements of the Company contained in this Agreement shall also be deemed to be for the benefit of the Remarketing Agent and the person or persons, if any, who control the
Remarketing Agent within the meaning of Section 15 of the Securities Act and (y) the indemnity agreement of the Remarketing Agent contained in Section 7(b) of this Agreement shall be deemed to be for the benefit of the Company’s directors and
officers who sign the Registration Statement and any person controlling the Company within the meaning of Section 15 of the Securities Act. Nothing contained in this Agreement is intended or shall be construed to give any person, other than the
persons referred to herein, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein. 
 Section 14. Survival. 
 The respective indemnities, representations, warranties and agreements of the Company Capital
Funding and the Remarketing Agent contained in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall survive the Remarketing and shall remain in full force and effect, regardless of any investigation made by
or on behalf of any of them or any person controlling any of them. 
 Section 15. Governing Law. 
 This Agreement shall be governed by, and construed in accordance with, the laws of New York. 
 Section 16. Counterparts. 
 This Agreement may
be executed in one or more counterparts and, if executed in more than one counterpart, the executed counterparts shall each be deemed to be an original but all such counterparts shall together constitute one and the same instrument. 
 Section 17. Headings. 
 The headings herein are
inserted for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement. If the foregoing correctly sets forth the agreement between the Company and the Remarketing Agent, please
indicate your acceptance in the space provided for that purpose below. 
  

 14 

 If the foregoing correctly sets forth the agreement between the Company and the Remarketing Agent, please
indicate your acceptance in the space provided for that purpose below. 
  

			
	Very truly yours,
	
	PPL CORPORATION
		
	By:	 	  

	Title:	 	
	
	PPL CAPITAL FUNDING, INC.
		
	By:	 	  

  

			
	Accepted:
	
	  

		
	By:	 	  

		 	Authorized Representative

  

 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]