Document:

Exhibit 4.1

Exhibit 4.1

EXECUTION COPY

PPL Corporation

and

The Bank of New York Mellon,

as Purchase Contract Agent,

and

The Bank of New York Mellon,

as Collateral Agent, Custodial Agent and Securities Intermediary

PURCHASE CONTRACT AND PLEDGE AGREEMENT

Dated as of April 15, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE 1

Definitions and Other Provisions of General Application

	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Compliance Certificates and Opinions
	 	 	20	 
	Section 1.03. Form of Documents Delivered to Purchase Contract Agent 

	 	 	21	 
	

Section 1.04. Acts of Holders; Record Dates
	 	 	22	 
	Section 1.05. Notices
	 	 	23	 
	Section 1.06. Notice to Holders; Waiver
	 	 	24	 
	Section 1.07. Effect of Headings and Table of Contents
	 	 	24	 
	Section 1.08. Successors and Assigns
	 	 	24	 
	Section 1.09. Separability Clause
	 	 	24	 
	Section 1.10. Benefits of Agreement
	 	 	25	 
	Section 1.11. Governing Law; Waiver of Jury Trial
	 	 	25	 
	Section 1.12. Legal Holidays
	 	 	25	 
	Section 1.13. Counterparts
	 	 	26	 
	Section 1.14. Inspection of Agreement
	 	 	26	 
	Section 1.15. Appointment of Financial Institution as Agent for the Company
	 	 	26	 
	Section 1.16. No Waiver
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 2

Certificate Forms

	 
	 	 	 	 
	Section 2.01. Forms of Certificates Generally
	 	 	27	 
	Section 2.02. Form of Purchase Contract Agent’s Certificate of Authentication
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 3

The Units

	 
	 	 	 	 
	Section 3.01. Amount; Form and Denominations
	 	 	27	 
	Section 3.02. Rights and Obligations Evidenced by the Certificates
	 	 	27	 
	Section 3.03. Execution, Authentication, Delivery and Dating
	 	 	28	 
	Section 3.04. Temporary Certificates
	 	 	29	 
	Section 3.05. Registration; Registration of Transfer and Exchange
	 	 	30	 
	Section 3.06. Book-entry Interests
	 	 	31	 
	Section 3.07. Notices to Holders
	 	 	32	 
	Section 3.08. Appointment of Successor Depositary
	 	 	32	 

 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	Section 3.09. Definitive Certificates
	 	 	33	 
	Section 3.10. Mutilated, Destroyed, Lost and Stolen Certificates
	 	 	33	 
	Section 3.11. Persons Deemed Owners
	 	 	35	 
	Section 3.12. Cancellation
	 	 	36	 
	Section 3.13. Creation of Treasury Units by Substitution of Treasury Securities
	 	 	37	 
	Section 3.14. Recreation of Corporate Units
	 	 	39	 
	Section 3.15. Transfer of Collateral Upon Occurrence of Termination Event
	 	 	40	 
	Section 3.16. No Consent to Assumption
	 	 	42	 
	Section 3.17. Substitutions
	 	 	43	 
	 
	 	 	 	 
	ARTICLE 4

The Notes

	 
	 	 	 	 
	Section 4.01. Interest Payments; Rights to Interest Payments Preserved
	 	 	43	 
	Section 4.02. Payments Prior to or on Purchase Contract Settlement Date
	 	 	44	 
	Section 4.03. Notice and Voting
	 	 	45	 
	Section 4.04. Payments to Purchase Contract Agent
	 	 	46	 
	Section 4.05. Payments Held in Trust
	 	 	46	 
	 
	 	 	 	 
	ARTICLE 5

The Purchase Contracts

	 
	 	 	 	 
	Section 5.01. Purchase of Shares of Common Stock
	 	 	47	 
	Section 5.02. Remarketing
	 	 	51	 
	Section 5.03. Cash Settlement; Payment of Purchase Price
	 	 	59	 
	Section 5.04. Issuance of Shares of Common Stock
	 	 	62	 
	Section 5.05. Adjustment of each Fixed Settlement Rate
	 	 	62	 
	Section 5.06. Notice of Adjustments and Certain Other Events
	 	 	76	 
	Section 5.07. Termination Event; Notice
	 	 	77	 
	Section 5.08. Early Settlement
	 	 	78	 
	Section 5.09. No Fractional Shares
	 	 	82	 
	Section 5.10. Charges and Taxes
	 	 	82	 
	Section 5.11. Contract Adjustment Payments
	 	 	82	 
	Section 5.12. Deferral of Contract Adjustment Payments
	 	 	89	 
	 
	 	 	 	 
	ARTICLE 6

Rights and Remedies of Holders

	 
	 	 	 	 
	Section 6.01. Unconditional Right of Holders to Receive Contract Adjustment Payments and to
Purchase Shares of Common Stock
	 	 	91	 
	Section 6.02. Restoration of Rights and Remedies
	 	 	92	 
	Section 6.03. Rights and Remedies Cumulative
	 	 	92	 
	Section 6.04. Delay or Omission Not Waiver
	 	 	92	 
	Section 6.05. Undertaking for Costs
	 	 	92	 
	Section 6.06. Waiver of Stay or Extension Laws
	 	 	93	 

 

ii

 

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE 7

The Purchase Contract Agent

	 
	 	 	 	 
	Section 7.01. Certain Duties and Responsibilities
	 	 	93	 
	Section 7.02. Notice of Default
	 	 	94	 
	Section 7.03. Certain Rights of Purchase Contract Agent
	 	 	94	 
	Section 7.04. Not Responsible for Recitals or Issuance of Units
	 	 	96	 
	Section 7.05. May Hold Units
	 	 	97	 
	Section 7.06. Money Held in Custody
	 	 	97	 
	Section 7.07. Compensation and Reimbursement
	 	 	97	 
	Section 7.08. Corporate Purchase Contract Agent Required; Eligibility
	 	 	98	 
	Section 7.09. Resignation and Removal; Appointment of Successor
	 	 	98	 
	Section 7.10. Acceptance of Appointment by Successor
	 	 	100	 
	Section 7.11. Merger, Conversion, Consolidation or Succession to Business
	 	 	100	 
	Section 7.12. Preservation of Information; Communications to Holders
	 	 	100	 
	Section 7.13. No Obligations of Purchase Contract Agent
	 	 	101	 
	Section 7.14. Tax Compliance
	 	 	102	 
	 
	 	 	 	 
	ARTICLE 8

Supplemental Agreements

	 
	 	 	 	 
	Section 8.01. Supplemental Agreements without Consent of Holders
	 	 	102	 
	Section 8.02. Supplemental Agreements with Consent of Holders
	 	 	103	 
	Section 8.03. Execution of Supplemental Agreements
	 	 	104	 
	Section 8.04. Effect of Supplemental Agreements
	 	 	104	 
	Section 8.05. Reference to Supplemental Agreements
	 	 	105	 
	 
	 	 	 	 
	ARTICLE 9

Consolidation, Merger, Conveyance, Transfer Or Lease

	 
	 	 	 	 
	Section 9.01. Covenant Not To Consolidate, Merge, Convey, Transfer or Lease Property except
under Certain Conditions
	 	 	105	 
	Section 9.02. Rights and Duties of Successor Person
	 	 	105	 
	Section 9.03. Officers’ Certificate and Opinion of Counsel Given to Purchase Contract Agent
	 	 	106	 
	 
	 	 	 	 
	ARTICLE 10

Covenants

	 
	 	 	 	 
	Section 10.01. Performance under Purchase Contracts
	 	 	106	 
	Section 10.02. Maintenance of Office or Agency
	 	 	107	 
	Section 10.03. Company to Reserve Common Stock
	 	 	107	 
	Section 10.04. Covenants as to Common Stock; Listing
	 	 	107	 
	Section 10.05. Statements of Officers of the Company as to Default
	 	 	108	 
	Section 10.06. ERISA
	 	 	108	 
	Section 10.07. Tax Treatment
	 	 	109	 
	Section 10.08. Remarketing Agreement
	 	 	109	 

 

iii

 

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE 11

Pledge

	 
	 	 	 	 
	Section 11.01. Pledge
	 	 	109	 
	Section 11.02. Termination
	 	 	109	 
	 
	 	 	 	 
	ARTICLE 12

Administration of Collateral

	 
	 	 	 	 
	Section 12.01. Initial Deposit of Notes
	 	 	110	 
	Section 12.02. Establishment of Collateral Account
	 	 	110	 
	Section 12.03. Treatment as Financial Assets
	 	 	111	 
	Section 12.04. Sole Control by Collateral Agent
	 	 	111	 
	Section 12.05. Jurisdiction
	 	 	111	 
	Section 12.06. No Other Claims
	 	 	111	 
	Section 12.07. Investment and Release
	 	 	111	 
	Section 12.08. Statements and Confirmations
	 	 	112	 
	Section 12.09. Tax Allocations
	 	 	112	 
	Section 12.10. No Other Agreements
	 	 	112	 
	Section 12.11. Powers Coupled with an Interest
	 	 	112	 
	Section 12.12. Waiver of Lien; Waiver of Set-off
	 	 	112	 
	 
	 	 	 	 
	ARTICLE 13

Rights and Remedies of the Collateral Agent

	 
	 	 	 	 
	Section 13.01. Rights and Remedies of the Collateral Agent
	 	 	113	 
	 
	 	 	 	 
	ARTICLE 14

Representations and Warranties to Collateral Agent; Holder Covenants

	 
	 	 	 	 
	Section 14.01. Representations and Warranties
	 	 	114	 
	Section 14.02. Covenants
	 	 	115	 
	 
	 	 	 	 
	ARTICLE 15

The Collateral Agent, the Custodial Agent and the Securities Intermediary

	 
	 	 	 	 
	Section 15.01. Appointment, Powers and Immunities
	 	 	115	 
	Section 15.02. Instructions of the Company
	 	 	116	 
	Section 15.03. Reliance by Collateral Agent, Custodial Agent and Securities Intermediary
	 	 	117	 
	Section 15.04. Certain Rights
	 	 	117	 
	Section 15.05. Merger, Conversion, Consolidation or Succession to Business
	 	 	117	 
	Section 15.06. Rights in Other Capacities
	 	 	118	 

 

iv

 

	 	 	 	 	 
	 	 	Page	 
	 
	Section 15.07. Non-reliance on the Collateral Agent, Custodial Agent And Securities
Intermediary
	 	 	118	 
	Section 15.08. Compensation and Indemnity
	 	 	118	 
	Section 15.09. Failure to Act
	 	 	119	 
	Section 15.10. Resignation of Collateral Agent, the Custodial Agent and the Securities
Intermediary
	 	 	120	 
	Section 15.11. Right to Appoint Agent or Advisor
	 	 	122	 
	Section 15.12. Survival
	 	 	122	 
	Section 15.13. Exculpation
	 	 	122	 
	Section 15.14. Expenses, Etc
	 	 	122	 
	Section 15.15. Force Majeure
	 	 	123	 
	 
	 	 	 	 
	ARTICLE 16

Miscellaneous

	 
	 	 	 	 
	Section 16.01. Security Interest Absolute
	 	 	123	 
	Section 16.02. Notice of Termination Event
	 	 	124	 

 

v

 

	 	 	 	 	 
	EXHIBITS	 	 	 	 
	 
	Exhibit A

	 	—
	 	Form of Corporate Units Certificate
	Exhibit B

	 	—
	 	Form of Treasury Units Certificate
	Exhibit C

	 	—
	 	Instruction to Purchase Contract Agent From Holder (To Create Treasury Units or Corporate Units)
	Exhibit D

	 	—
	 	Notice from Purchase Contract Agent to Holders Upon Termination Event (Transfer of Collateral upon Occurrence of a Termination Event)
	Exhibit E

	 	—
	 	Notice to Settle with Cash
	Exhibit F

	 	—
	 	Instruction from Purchase Contract Agent to Collateral Agent (Creation of Treasury Units)
	Exhibit G

	 	—
	 	Instruction from the Collateral Agent to the Securities Intermediary (Creation of Treasury Units)
	Exhibit H

	 	—
	 	Instruction from Purchase Contract Agent to Collateral Agent (Recreation of Corporate Units)
	Exhibit I

	 	—
	 	Instruction from Collateral Agent to Securities Intermediary (Recreation of Corporate Units)
	Exhibit J

	 	—
	 	Notice to Settle with Cash from Purchase Contract Agent to Collateral Agent (Cash Settlement Amounts)
	Exhibit K

	 	—
	 	Instruction to Custodial Agent Regarding Remarketing
	Exhibit L

	 	—
	 	Instruction to Custodial Agent Regarding Withdrawal from Remarketing
	Exhibit M

	 	—
	 	Notice to Settle with Cash After Failed Final Remarketing
	Exhibit N

	 	—
	 	Notice from Purchase Contract Agent to Collateral Agent (Settlement with Separate Cash)
	Exhibit O

	 	—
	 	Notice of Settlement with Separate Cash from Securities Intermediary to Purchase Contract Agent (Settlement with Separate Cash)
	Exhibit P

	 	—
	 	Form of Remarketing Agreement

 

vi

 

PURCHASE CONTRACT AND PLEDGE AGREEMENT, dated as of April 15, 2011, among PPL Corporation, a
Pennsylvania corporation (the “Company”), The Bank of New York Mellon, a corporation duly organized
and existing under the laws of the State of New York, acting as purchase contract agent for, and as
attorney-in-fact of, the Holders from time to time of the Units (in such capacities, together with
its successors and assigns in such capacities, the “Purchase Contract Agent”), and The Bank of New
York Mellon, as collateral agent hereunder for the benefit of the Company (in such capacity,
together with its successors in such capacity, the “Collateral Agent”), as custodial agent (in such
capacity, together with its successors in such capacity, the “Custodial Agent”), and as securities
intermediary (as defined in Section 8-102(a)(14) of the UCC) with respect to the Collateral Account
(in such capacity, together with its successors in such capacity, the “Securities Intermediary”).

RECITALS

WHEREAS, the Company has duly authorized the execution and delivery of this Agreement and the
Certificates evidencing the Units; and

WHEREAS, all things necessary to make the Purchase Contracts, when the Certificates are
executed by the Company and authenticated, executed on behalf of the Holders and delivered by the
Purchase Contract Agent, as provided in this Agreement, the valid obligations of the Company, and
to constitute these presents a valid agreement of the Company, in accordance with its terms, have
been done; and

WHEREAS, pursuant to the terms of this Agreement and the Purchase Contracts, the Holders 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 to secure the Obligations.

NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE 1

Definitions and Other Provisions of General Application

Section 1.01. 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, and nouns and pronouns of the masculine gender include
the feminine and neuter genders;

 

1

 

(b) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States;

(c) 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;

(d) 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 “security entitlement”;

(e) unless the context otherwise requires, any reference to an “Article” or “Section” or an
“Exhibit” refers to an Article, Section or an Exhibit, as the case may be, to this Agreement; and

(f) the following terms have the meanings given to them in this Section 1.01(f):

“Act” has the meaning, with respect to any Holder, set forth in Section 1.04.

“Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition,” control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

“Agent” has the meaning set forth in Section 1.05.

“Agreement” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more agreements supplemental hereto entered into pursuant to the
applicable provisions hereof.

“Applicable Market Value” has the meaning set forth in Section 5.01(a).

“Applicable Ownership Interest in Notes” means a 1/20, or a 5.0%, undivided beneficial
ownership interest in $1,000 principal amount of Notes that is a component of a Corporate Unit.

“Applicable Ownership Interest in the Treasury Portfolio” means, with respect to a Corporate
Unit and the Treasury Portfolio:

(i) a 1/20, or a 5%, undivided beneficial ownership interest in $1,000 face amount of
U.S. Treasury securities (or principal or interest
strips thereof) included in the Treasury Portfolio that matures on or prior to the
Purchase Contract Settlement Date; and

 

2

 

(ii) for the scheduled Interest Payment Date on the Notes occurring on the Purchase
Contract Settlement Date, a 0.054% undivided beneficial ownership interest in $1,000 face
amount of U.S. Treasury securities (or principal or interest strips thereof) that mature
on or prior to the Purchase Contract Settlement Date.

“Applicable Remarketing Period” means any of (i) any Optional Remarketing Period for which the
Company has elected to conduct an Optional Remarketing pursuant to Section 5.02(a) or (ii) the
Final Remarketing Period, as the context requires.

“Applicants” has the meaning set forth in Section 7.12(b).

“Authorized Officer” means the Chairman of the Board of Directors, the President, any Vice
President, the Treasurer or an Assistant Treasurer, or any other Person duly authorized by the
Company to act in respect of the matters relating to this Agreement.

“Bankruptcy Code” means Title 11 of the United States Code, or any other law of the United
States that from time to time provides a uniform system of bankruptcy laws.

“Base Indenture” means the Subordinated Indenture, dated as of March 1, 2007, among the
Company, the Notes Issuer and the Indenture Trustee (including any provisions of the TIA that are
deemed incorporated therein).

“Beneficial Owner” means, with respect to a Book-Entry Interest, a Person who is the
beneficial owner of such Book-Entry Interest as reflected on the books of the Depositary or on the
books of a Person maintaining an account with such Depositary (directly as a Depositary Participant
or as an indirect participant, in each case in accordance with the rules of such Depositary).

“Blackout Period” means, the period (i) from 5:00 p.m., New York City time, on the second
Business Day immediately following the date on which the Company gives its notice of an Optional
Remarketing under Section 5.02(a)(ii) to and including the Remarketing Settlement Date of such
Optional Remarketing or the date the Company announces that such Optional Remarketing was
unsuccessful and (ii) after 5:00 p.m., New York City time, on the second Business Day immediately
preceding the first day of the Final Remarketing Period.

“Board of Directors” means the board of directors of the Company or a duly authorized
committee of that board.

 

3

 

“Board Resolution” means one or more resolutions of the Board of Directors, a copy of which
has been certified by the Secretary or an Assistant Secretary of the Company to have been duly
adopted by the Board of Directors and to be in full force and effect on the date of such
certification and delivered to the Purchase Contract Agent.

“Book-Entry Interest” means a beneficial interest in a Global Certificate, registered in the
name of a Depositary or a nominee thereof, ownership and transfers of which shall be maintained and
made through book entries by such Depositary as described in Section 3.06.

“Business Day” means any day other than a Saturday or Sunday or any other day on which banking
institutions in New York City, New York are authorized or required by law or executive order to
close; provided that for purposes of the second paragraph of Section 1.12 only, the term “Business
Day” shall also be deemed to exclude any day on which the Depositary is closed.

“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.

“Cash Settlement” has the meaning set forth in Section 5.03(a)(i).

“Certificate” means a Corporate Units Certificate or a Treasury Units Certificate, as the case
may be.

“Closing Price” has the meaning set forth in Section 5.01(a).

“Code” means the Internal Revenue Code of 1986, as amended.

“Collateral” means the collective reference to:

(i) the Collateral Account and all investment property and other financial assets from time
to time credited to the Collateral Account and all security entitlements with respect thereto,
including, without limitation, (A) the Applicable Ownership Interests in Notes and security
entitlements relating thereto (and the Notes and security entitlements relating thereto delivered
to the Collateral Agent in respect of such Applicable Ownership Interests in Notes), (B) the
Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of Applicable Ownership Interest in the Treasury Portfolio) of the Holders with respect
to the Treasury Portfolio that is a component of the Corporate Units from time to time) and
security entitlements relating thereto, (C) any Treasury Securities and security entitlements
relating thereto Transferred to the Securities Intermediary from time to time in connection with
the creation of Treasury Units in accordance with Section 3.13 hereof and (D) payments made by
Holders pursuant to Section 5.03 hereof;

 

4

 

(ii) 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

(iii) all powers and rights now owned or hereafter acquired under or with respect to the
Collateral.

“Collateral Account” means the securities account of The Bank of New York Mellon, as
Collateral Agent, maintained on the books of the Securities Intermediary and designated “PPL
Corporation, Collateral Account (No. 2)”, or any successor securities account of a successor
Collateral Agent.

“Collateral Agent” means the Person named as “Collateral Agent” in the first paragraph of this
Agreement, acting in its capacity as such hereunder, until a successor Collateral Agent shall have
become such pursuant to this Agreement, and thereafter “Collateral Agent” shall mean the Person who
is then the Collateral Agent hereunder.

“collateral event of default” has the meaning set forth in Section 13.01(b).

“Collateral Substitution” means, (i) with respect to the Corporate Units, the substitution of
the Pledged Applicable Ownership Interests in Notes included in such Corporate Units with Treasury
Securities in an aggregate principal amount at maturity equal to the aggregate principal amount of
such Pledged Applicable Ownership Interests in Notes, or (ii) with respect to the Treasury Units,
the substitution of the Pledged Treasury Securities included in such Treasury Units with Notes in
an aggregate principal amount equal to the aggregate principal amount at stated maturity of the
Pledged Treasury Securities.

“Common Stock” means the common stock, par value $0.01, of the Company.

“Company” means the Person named as the “Company” in the first paragraph of this Agreement
until a successor shall have become such pursuant to the applicable provision of this Agreement,
and thereafter “Company” shall mean such successor.

“Compounded Contract Adjustment Payments” has the meaning set forth in Section 5.12(a).

“Constituent Person” has the meaning set forth in Section 5.05(b).

“Contract Adjustment Payment Date” means each February 1, May 1, August 1 and November 1 of
each year, commencing on August 1, 2011.

 

5

 

“Contract Adjustment Payments” means the payments payable by the Company on the Contract
Adjustment Payment Dates in respect of each Purchase Contract, at a rate per year of 4.43% of the
Stated Amount per Purchase Contract.

“Corporate Trust Office” means the office of the Purchase Contract Agent at which, at any
particular time, its corporate trust business shall be administered, which office at the date
hereof is located at 101 Barclay Street, New York, New York 10286, Attention: Global Structured
Finance, or such other address as the Purchase Contract Agent may designate from time to time by
notice to the Company, or a corporate trust office or agency of any successor Purchase Contract
Agent, or such other address as such successor Purchase Contract Agent may designate from time to
time by notice to the Company.

“Corporate Unit” means the collective rights and obligations of a Holder of a Corporate Units
Certificate in respect of the Applicable Ownership Interest in Notes or the Applicable Ownership
Interest in the Treasury Portfolio, as the case may be, subject in each case (except that the
Applicable Ownership Interest in the Treasury Portfolio as specified in clause (ii) of the
definition thereof shall not be subject to the Pledge) to the Pledge thereof, and the related
Purchase Contract.

“Corporate Units Certificate” means a certificate evidencing the rights and obligations of a
Holder in respect of the number of Corporate Units specified on such certificate.

“Coupon Rate” has the meaning set forth in the Supplemental Indenture.

“Current Market Price” means, in respect of a share of Common Stock or any other security on
any day of determination, the average VWAP of the Common Stock or such other security for the 10
consecutive Trading Days preceding the earlier of the day preceding the day in question and the day
before the “ex date” with respect to the issuance or distribution requiring such computation. For
purposes of this definition, the term “ex date,” when used with respect to any issuance or
distribution, means the first date on which the Common Stock or such other security, as applicable,
trades, regular way, on the principal U.S. securities exchange or quotation system on which the
Common Stock or such other security, as applicable, is listed or quoted at that time, without the
right to receive the issuance or distribution.

“Custodial Agent” means the Person named as Custodial Agent in the first paragraph of this
Agreement, acting in its capacity as such hereunder, until a successor Custodial Agent shall have
become such pursuant to the applicable provisions of this Agreement, and thereafter “Custodial
Agent” shall mean the Person who is then the Custodial Agent hereunder.

“Deferred Interest” has the meaning set forth in the Supplemental Indenture.

 

6

 

“Depositary” means a clearing agency registered under Section 17A of the Exchange Act that is
designated to act as Depositary for the Units as contemplated by Sections 3.06 and 3.08.

“Depositary Participant” means a broker, dealer, bank, other financial institution or other
Person for whom from time to time the Depositary effects book entry transfers and pledges of
securities deposited with the Depositary.

“DTC” means The Depository Trust Company.

“Early Settlement” has the meaning set forth in Section 5.08(a).

“Early Settlement Amount” has the meaning set forth in Section 5.08(b).

“Early Settlement Date” has the meaning set forth in Section 5.08(b).

“Effective Date” has the meaning set forth in Section 5.05(b)(iii).

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“Event of Default” has the meaning set forth in the Indenture.

“Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in
each case as amended from time to time, and the rules and regulations promulgated thereunder.

“Exchange Property Unit” has the meaning set forth in Section 5.05(b)(i).

“Expiration Date” has the meaning set forth in Section 1.04(e).

“Expiration Time” has the meaning set forth in Section 5.05(a)(vi).

“Extension Period” has the meaning set forth in Section 5.12(a).

“Failed Final Remarketing” has the meaning set forth in Section 5.02(b)(viii).

“Failed Optional Remarketing” has the meaning set forth in Section 5.02(a)(ix).

“Failed Remarketing” means, as applicable, a Failed Optional Remarketing or a Failed Final
Remarketing.

“Fair Market Value” has the meaning set forth in Section 5.05(a)(iv).

 

7

 

“Final Remarketing” means any Remarketing of the Notes that occurs during the Final
Remarketing Period by the Remarketing Agent(s) pursuant to the Remarketing Agreement.

“Final Remarketing Date” means the date the Company prices the Notes offered in the Final
Remarketing.

“Final Remarketing Period” means the seven Business Day period ending on, and including, the
third Business Day immediately preceding the Purchase Contract Settlement Date.

“Fixed Settlement Rates” means the Minimum Settlement Rate and the Maximum Settlement Rate,
collectively.

“Fundamental Change” means

(a) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act has become
the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of the
Company’s common equity representing more than 50% of the voting power of the Company’s common
equity;

(b) the Company is involved in a consolidation with or merger into any other person, or any
merger of another person into the Company, or any other similar transaction or series of related
transactions pursuant to which the Common Stock will be converted into cash, securities or other
property or the Company sells, leases or transfers in one transaction or series of related
transactions all or substantially all of the property and assets of the Company and its
subsidiaries;

(c) the Common Stock (or any other security to be delivered upon settlement of the Purchase
Contracts following a Reorganization Event) ceases to be listed or quoted on the NYSE, the NASDAQ
Global Select Market or the NASDAQ Global Market; or

(d) the shareholders of the Company vote for a liquidation, dissolution or termination of the
Company;

provided, however, that a Fundamental Change shall not be deemed to have occurred if at least 90%
of the consideration received by holders of Common Stock in the transaction or transactions consist
of shares of common stock that are listed on the NYSE, the NASDAQ Global Select Market or the
NASDAQ Global Market.

“Fundamental Change Early Settlement” has the meaning set forth in Section 5.05(b)(ii).

“Fundamental Change Early Settlement Date” has the meaning set forth in Section 5.05(b)(ii).

 

8

 

“Fundamental Change Early Settlement Rate” means the sum of the applicable Settlement Rate and
the amount of Make-Whole Shares, determined pursuant to Section 5.05(b)(ii) and Section
5.05(b)(iii).

“Fundamental Change Early Settlement Right” has the meaning set forth in Section 5.05(b)(ii).

“Guarantee” has the meaning set forth in the Indenture.

“Global Certificate” means a Certificate that evidences all or part of the Units and is
registered in the name of the Depositary or a nominee thereof.

“Holder” means, with respect to a Unit, the Person in whose name the Unit evidenced by a
Certificate is registered in the Security Register; provided, however, that solely for the purpose
of determining whether the Holders of the requisite number of Units have voted on any matter (and
not for any other purpose hereunder), if the Unit remains in the form of one or more Global
Certificates and if the Depositary that is the registered holder of such Global Certificate has
sent an omnibus proxy assigning voting rights to the Depositary Participants to whose accounts the
Units are credited on the record date, the term “Holder” shall mean such Depositary Participant
acting at the direction of the Beneficial Owners.

“Indemnitees” has the meaning set forth in Section 7.07(c).

“Indenture” means the Base Indenture, as amended and supplemented by the Supplemental
Indenture.

“Indenture Trustee” means The Bank of New York Mellon, a corporation duly organized and
existing under the laws of the State of New York, or any successor thereto as described in the
Indenture.

“Initial Public Offering” has the meaning set forth in Section 5.05(a)(iv).

“Interest Payment” has the meaning set forth in the Supplemental Indenture.

“Interest Payment Date” has the meaning set forth in the Supplemental Indenture.

“Issuer Order” or “Issuer Request” means a written order or request signed in the name of the
Company by an Authorized Officer of the Company, and delivered to the Purchase Contract Agent.

“Losses” has the meaning set forth in Section 15.08(b).

“Make-Whole Shares” has the meaning set forth in Section 5.05(b)(ii).

“Market Disruption Event” has the meaning set forth in Section 5.01(a).

 

9

 

“Maximum Settlement Rate” has the meaning set forth in Section 5.01(a)(iii).

“Minimum Settlement Rate” has the meaning set forth in Section 5.01(a)(i).

“Minimum Stock Price” has the meaning set forth in Section 5.05(b)(iii).

“Notes” means the series of Notes designated the 4.32% Junior Subordinated Notes due 2019 of
the Notes Issuer.

“Notes Issuer” means PPL Capital Funding, Inc. or any successor thereto as described in the
Indenture.

“NYSE” has the meaning set forth in Section 5.01(a).

“Obligations” means, with respect to each Holder, all obligations and liabilities of such
Holder under such Holder’s Purchase Contract 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), 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).

“Observation Period” has the meaning set forth in Section 5.01(a).

“Officers’ Certificate” means a certificate signed by an Authorized Officer of the Company and
delivered to the Purchase Contract Agent, the Collateral Agent, the Custodial Agent or the
Securities Intermediary, as applicable. Any Officers’ Certificate delivered with respect to
compliance with a condition or covenant provided for in this Agreement (other than the Officers’
Certificate provided for in Section 10.05) shall include the information set forth in Section 1.02
hereof.

“Opinion of Counsel” means a written opinion of counsel, who may be counsel to the Company
(and who may be an employee of the Company), and who shall be reasonably acceptable to the Purchase
Contract Agent. An opinion of counsel may rely on certificates as to matters of fact.

“Optional Remarketing” means any Remarketing of the Notes that occurs during the Optional
Remarketing Period by the Remarketing Agent(s) pursuant to the Remarketing Agreement.

 

10

 

“Optional Remarketing Date” means the date the Company prices the Notes offered in an Optional
Remarketing.

“Optional Remarketing Period” means a period of one or more dates selected by the Company that
falls during the period from and including the second Business Day immediately preceding the
Interest Payment Date prior to the Purchase Contract Settlement Date and ending on the third
Business Day prior to the first day of the Final Remarketing Period.

“Optional Remarketing Settlement Date” means the third Business Day following the date of a
Successful Optional Remarketing.

“Outstanding” means, as of any date of determination, all Units evidenced by Certificates
theretofore authenticated, executed and delivered under this Agreement, except:

(i) all Units, if a Termination Event has occurred;

(ii) Units evidenced by Certificates theretofore cancelled by the Purchase Contract Agent or
delivered to the Purchase Contract Agent for cancellation or deemed cancelled pursuant to the
provisions of this Agreement; and

(iii) Units evidenced by Certificates in exchange for or in lieu of which other Certificates
have been authenticated, executed on behalf of the Holder and delivered pursuant to this Agreement,
other than any such Certificate in respect of which there shall have been presented to the Purchase
Contract Agent proof satisfactory to it that such Certificate is held by a protected purchaser in
whose hands the Units evidenced by such Certificate are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite number of the Units
have given any request, demand, authorization, direction, notice, consent or waiver hereunder,
Units owned by the Company or any Affiliate of the Company shall be disregarded and deemed not to
be Outstanding Units, except that, in determining whether the Purchase Contract Agent shall be
authorized and protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Units that a Responsible Officer of the Purchase Contract Agent
actually knows to be so owned shall be so disregarded. Units so owned that have been pledged in
good faith may be regarded as Outstanding Units if the pledgee establishes to the satisfaction of
the Purchase Contract Agent the pledgee’s right so to act with respect to such Units and that the
pledgee is not the Company or any Affiliate of the Company.

“Payment Date” means the 1st day of February, May, August and November of each year,
commencing August 1, 2011.

 

11

 

“Permitted Investments” means any one of the following, in each case maturing on the Business
Day following the date of acquisition:

(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 $500 million at the time of deposit (and which may
include the Collateral Agent);

(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) of this definition;

(4) repurchase agreements and reverse repurchase agreements relating to marketable direct
obligations issued or unconditionally guaranteed by the United States of America or issued by any
agency thereof and backed as to timely payment by the full faith and credit of the United States of
America;

(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 (including, but not limited to, money market funds
managed by the Collateral Agent or an affiliate of the Collateral Agent) 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 a 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 or any other entity of
whatever nature.

“Plan” means an employee benefit plan that is subject to ERISA, a plan or individual
retirement account that is subject to Section 4975 of the Code or any entity whose assets are
considered assets of any such plan.

“Pledge” means the lien and security interest in the Collateral created by this Agreement.

 

12

 

“Pledged Applicable Ownership Interests in Notes” means the Applicable Ownership Interests in
Notes and security entitlements with respect thereto from time to time credited to the Collateral
Account and not then released from the Pledge.

“Pledged Applicable Ownership Interests in the Treasury Portfolio” means the Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such
term) and security 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 security entitlements with respect
thereto from time to time credited to the Collateral Account and not then released from the Pledge.

“Pledge Indemnitees” has the meaning set forth in Section 15.08(b).

“Predecessor Certificate” means a Predecessor Corporate Units Certificate or a Predecessor
Treasury Units Certificate.

“Predecessor Corporate Units Certificate” of any particular Corporate Units Certificate means
every previous Corporate Units Certificate evidencing all or a portion of the rights and
obligations of the Company and the Holder under the Corporate Units evidenced thereby; and, for the
purposes of this definition, any Corporate Units Certificate authenticated and delivered under
Section 3.10 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Corporate Units
Certificate shall be deemed to evidence the same rights and obligations of the Company and the
Holder as the mutilated, destroyed, lost or stolen Corporate Units Certificate.

“Predecessor Treasury Units Certificate” of any particular Treasury Units Certificate means
every previous Treasury Units Certificate evidencing all or a portion of the rights and obligations
of the Company and the Holder under the Treasury Units evidenced thereby; and, for the purposes of
this definition, any Treasury Units Certificate authenticated and delivered under Section 3.10 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Treasury Units Certificate shall
be deemed to evidence the same rights and obligations of the Company and the Holder as the
mutilated, destroyed, lost or stolen Treasury Units Certificate.

“Pro Rata” or “pro rata” shall mean pro rata to each Holder according to the aggregate Stated
Amount of the Units held by such Holder in relation to the aggregate Stated Amount of all Units
outstanding.

“Proceeds” has the meaning ascribed thereto in the UCC and includes, without limitation, all
interest, dividends, cash, instruments, securities, financial assets and other property received,
receivable or otherwise distributed upon the
sale (including, without limitation, any Remarketing), exchange, collection or disposition of
any financial assets from time to time credited to the Collateral Account.

 

13

 

“Prospectus” means the prospectus relating to the delivery of shares or any securities in
connection with an Early Settlement pursuant to Section 5.08 or a Fundamental Change Early
Settlement of Purchase Contracts pursuant to Section 5.05(b)(ii), in the form in which first filed,
or transmitted for filing, with the Securities and Exchange Commission after the effective date of
the Registration Statement pursuant to Rule 424(b) under the Securities Act, including the
documents incorporated by reference therein as of the date of such Prospectus.

“Purchase Contract” means, with respect to any Unit, the contract forming a part of such Unit
and obligating the Company to (i) sell, and the Holder of such Unit to purchase, not later than on
the Purchase Contract Settlement Date, a number of shares of Common Stock equal to the applicable
Settlement Rate, and (ii) pay to the Holder thereof Contract Adjustment Payments, subject to the
Company’s right to defer Contract Adjustment Payments pursuant to Section 5.12, in each case, on
the terms and subject to the conditions set forth in Article 5 hereof.

“Purchase Contract Agent” means the Person named as the “Purchase Contract Agent” in the first
paragraph of this Agreement, acting in its capacity as such hereunder, until a successor Purchase
Contract Agent shall have become such pursuant to the applicable provisions of this Agreement, and
thereafter “Purchase Contract Agent” shall mean such Person or any subsequent successor who is
appointed pursuant to this Agreement.

“Purchase Contract Settlement Date” means May 1, 2014.

“Purchase Contract Settlement Fund” has the meaning set forth in Section 5.04.

“Purchase Price” has the meaning set forth in Section 5.01(a).

“Purchased Shares” has the meaning set forth in Section 5.05(a)(vi).

“Put Right” has the meaning set forth in the Supplemental Indenture.

“Quotation Agent” means any primary United States government securities dealer in New York
City selected by the Company or the Notes Issuer.

“Record Date” for any distribution and any Contract Adjustment Payment and any deferred
Contract Adjustment Payment (and any Compounded Contract Adjustment Payment thereon) payable on any
Contract Adjustment Payment Date means the fifteenth day of the calendar month preceding the
calendar month in
which the relevant Contract Adjustment Payment Date falls (whether or not a Business Day).

 

14

 

“Redemption Date” has the meaning set forth in the Supplemental Indenture.

“Reference Dividend” has the meaning set forth in Section 5.05(a)(v).

“Reference Price” has the meaning set forth in Section 5.01(a)(ii).

“Registration Statement” means a registration statement under the Securities Act prepared by
the Company covering, inter alia, the delivery by the Company of any securities in connection with
an Early Settlement on the Early Settlement Date under Section 5.08 or a Fundamental Change Early
Settlement of Purchase Contracts on the Fundamental Change Early Settlement Date under Section
5.05(b)(ii), including all exhibits thereto and the documents incorporated by reference in the
prospectus contained in such registration statement, and any post-effective amendments thereto.

“Relevant Fraction” means, in respect of each tranche of Notes remarketed, a fraction the
numerator of which is the aggregate principal amount of the Notes in such tranche that are being
remarketed and the denominator of which is the aggregate principal amount of the Notes to be
remarketed.

“Remarketing” means the remarketing of the Notes pursuant to the Remarketing Agreement on any
Remarketing Date.

“Remarketing Agent(s)” has the meaning set forth in the Supplemental Indenture.

“Remarketing Agreement” means the Remarketing Agreement, in substantially the form set forth
in Exhibit P hereof, to be entered into among the Company, the Notes Issuer, the Purchase Contract
Agent and the Remarketing Agent(s), as the same may be amended, amended and restated, supplemented
or otherwise modified or replaced from time to time.

“Remarketing Date” means any of the Business Days selected for Remarketing in an Optional
Remarketing Period or the Final Remarketing Period.

“Remarketing Fee” means, in the event of a Successful Remarketing, a remarketing fee paid to
the Remarketing Agent(s) to be agreed upon in writing by the Company, the Notes Issuer and the
Remarketing Agent(s) prior to any such Remarketing pursuant to the Remarketing Agreement.

“Remarketing Price Per Note” means, for each $1,000 principal amount of Notes, an amount in
cash equal to the quotient of the Treasury Portfolio Purchase Price divided by the number of $1,000
principal amount of Notes
underlying the Pledged Applicable Ownership Interests in Notes that are held as components of
Corporate Units and remarketed in an Optional Remarketing.

 

15

 

“Remarketing Price” means, for each tranche of Notes remarketed, (i) in the case of an
Optional Remarketing, 100% of the Relevant Fraction of the sum of the Treasury Portfolio Purchase
Price and the Separate Notes Purchase Price (if any) for such tranche of Notes; and (ii) in the
case of a Final Remarketing, 100% of the aggregate principal amount of Notes underlying the Pledged
Applicable Ownership Interests in Notes and Separate Notes to be remarketed in such tranche.

“Remarketing Settlement Date” means (i) in the case of a Successful Optional Remarketing
occurring during an Optional Remarketing Period, the third Business day immediately following the
Optional Remarketing Date for such Successful Optional Remarketing, and (ii) in the case of a Final
Remarketing, the Purchase Contract Settlement Date.

“Reorganization Event” means:

(i) any consolidation or merger of the Company with or into another Person or of another
Person with or into the Company;

(iii) any sale, transfer, lease or conveyance to another Person of the property of the Company
as an entirety or substantially as an entirety;

(iv) any statutory share exchange of the Company with another Person (other than in connection
with a merger or acquisition); or

(v) any liquidation, dissolution or termination of the Company (other than as a result of or
after the occurrence of a Termination Event).

“Reset Rate” means, in connection with each Remarketing, the rate per annum rounded to the
nearest one thousandth (0.001) of one percent that a tranche of Notes shall bear as determined by
the Remarketing Agent(s) in consultation with the Company and the Notes Issuer pursuant to the
Remarketing Agreement. For the avoidance of doubt, the Reset Rate could be a fixed rate or a
floating rate.

“Responsible Officer” means, when used with respect to the Purchase Contract Agent, any
officer of the Purchase Contract Agent assigned to the Corporate Trust Administration unit (or any
successor unit, department or division of the Purchase Contract Agent) of the Purchase Contract
Agent located at the Corporate Trust Office of the Purchase Contract Agent who has direct
responsibility for the administration of the Agreement and, for the purposes of Section
7.01(b)(ii), also means, with respect to a particular corporate trust matter, any other officer,
trust officer or person performing similar functions to whom such matter is referred because of his
or her knowledge of and familiarity of the particular subject.

 

16

 

“Rights” has the meaning set forth in Section 5.05(a)(x).

“Securities Act” means the Securities Act of 1933 and any statute successor thereto, in each
case as amended from time to time, and the rules and regulations promulgated thereunder.

“Securities Intermediary” means the Person named as Securities Intermediary in the first
paragraph of this Agreement, acting in its capacity as such hereunder, until a successor Securities
Intermediary shall have become such pursuant to the applicable provisions of this Agreement, and
thereafter “Securities Intermediary” shall mean such successor or any subsequent successor.

“Security Register” and “Securities Registrar” have the respective meanings set forth in
Section 3.05.

“Senior Indebtedness” has the meaning set forth Section 101 of the Base Indenture.

“Separate Notes” means Notes that have been released from the Pledge pursuant to the terms
hereof and therefore no longer underlie Corporate Units.

“Separate Notes Purchase Price” means, for each tranche of Notes remarketed in any Optional
Remarketing, the amount in cash equal to the product of (i) the Remarketing Price Per Note and (ii)
the number of $1,000 principal amount of Separate Notes of such tranche remarketed in such Optional
Remarketing.

“Settlement Date” means, as applicable, the Purchase Contract Settlement Date, the Early
Settlement Date or the Fundamental Change Early Settlement Date.

“Settlement Rate” has the meaning set forth in Section 5.01(a).

“Similar Laws” means the provisions under any federal, state, local, non-U.S. laws or
regulations that are similar to Title I of ERISA or Section 4975 of the Code.

“Spin-Off” has the meaning set forth in Section 5.05(a)(iv).

“Stated Amount” means $50.00.

“Stock Price” has the meaning set forth in Section 5.05(b)(iii).

“Successful Optional Remarketing” has the meaning set forth in Section 5.02(a)(vi).

 

17

 

“Successful Final Remarketing” has the meaning set forth in Section 5.02(b)(vi).

“Successful Remarketing” means, as applicable, a Successful Optional Remarketing or a
Successful Final Remarketing.

“Supplemental Indenture” means Supplemental Indenture No. 3 dated as of the date hereof among
the Company, the Notes Issuer and the Indenture Trustee pursuant to which the Notes are issued.

“Termination Date” means the date, if any, on which a Termination Event occurs.

“Termination Event” means the occurrence of any of the following events:

(i) at any time on or prior to the Purchase Contract Settlement Date, a decree or order by a
court having jurisdiction in the premises shall have been entered adjudging the Company a bankrupt
or insolvent, or approving as properly filed a petition seeking reorganization of the Company under
the Bankruptcy Code or any other similar applicable Federal or state law and if such judgment,
decree or order shall have been entered more than 60 days prior to the Purchase Contract Settlement
Date, such decree or order shall have continued undischarged and unstayed for a period of 60 days;

(ii) at any time on or prior to the Purchase Contract Settlement Date, a decree or order of a
court having jurisdiction in the premises for the appointment of a receiver or liquidator or
trustee or assignee (or other similar official) in bankruptcy or insolvency of the Company or of
all or substantially all of its property, or for the winding up or liquidation of its affairs,
shall have been entered and if such decree or order shall have been entered more than 60 days prior
to the Purchase Contract Settlement Date, such judgment, decree or order shall have continued
undischarged and unstayed for a period of 60 days; or

(iii) at any time on or prior to the Purchase Contract Settlement Date, the Company shall
institute proceedings to be adjudicated a voluntary bankrupt, or shall consent to the filing of a
bankruptcy proceeding against it, or shall file a petition or answer or consent seeking
reorganization under the Bankruptcy Code or any other similar applicable Federal or state law, or
shall consent to the filing of any such petition, or shall consent to the appointment of a receiver
or liquidator or trustee or assignee (or other similar official) in bankruptcy or insolvency of it
or of its property, or shall make an assignment for the benefit of creditors, or shall admit in
writing its inability to pay its debts generally as they become due.

For the avoidance of doubt, a “Termination Event” shall not include any event described in
clauses (i) — (iii) above with respect to any subsidiary of the Company.

 

18

 

“Threshold Appreciation Price” means an amount equal to the Stated Amount divided by the
Minimum Settlement Rate (such quotient rounded to the nearest $0.0001).

“TIA” means the Trust Indenture Act of 1939, as amended from time to time, or any successor
legislation.

“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.

“Trading Day” has the meaning set forth in Section 5.01(a).

“Transfer” means (i) 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
endorsement; (ii) in the case of Treasury Securities, registration of the transferee as the owner
of such Treasury Securities on TRADES; and (iii) in the case of security entitlements, including,
without limitation, security 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 Portfolio” means:

(i) U.S. Treasury securities ( or principal or interest strips thereof) that mature on or
prior to the Purchase Contract Settlement Date in an aggregate amount equal to the principal amount
of the Notes underlying Applicable Ownership Interests in Notes included in the Corporate Units on
the Optional Remarketing Date; and

(ii) U.S. Treasury securities (or principal or interest strips thereof) that mature on or
prior to the Purchase Contract Settlement Date in an aggregate amount equal to the aggregate
Interest Payment (assuming no reset of the Coupon Rate) that would have been paid to the Holders of
the Corporate Units on the Purchase Contract Settlement Date on the principal amount of the Notes
underlying the Applicable Ownership Interests in Notes included in the Corporate Units on the
Optional Remarketing Date.

“Treasury Portfolio Purchase Price” means the lowest aggregate price quoted by a primary U.S.
government securities dealer in New York City to the Quotation Agent between 9:00 a.m. and 4:00
p.m., New York City time, on the
Optional Remarketing Date for the purchase of the Treasury Portfolio for settlement on the
Optional Remarketing Settlement Date.

 

19

 

“Treasury Securities” means zero-coupon U.S. Treasury securities that mature on or prior to
April 30, 2014 (CUSIP No. 912820TM9).

“Treasury Unit” means, following the substitution of Treasury Securities for Pledged
Applicable Ownership Interests in Notes as collateral to secure a Holder’s obligations under the
Purchase Contract, the collective rights and obligations of a Holder of a Treasury Units
Certificate in respect of such Treasury Securities, subject to the Pledge thereof, and the related
Purchase Contract.

“Treasury Units Certificate” means a certificate evidencing the rights and obligations of a
Holder in respect of the number of Treasury Units specified on such certificate.

“UCC” means the Uniform Commercial Code as in effect in the State of New York from time to
time.

“Unit” means a Corporate Unit or a Treasury Unit, as the case may be.

“Value” means, with respect to any item of Collateral on any date, as to (1) Cash, the amount
thereof, (2) Treasury Securities, the aggregate principal amount thereof at maturity, (3)
Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of Applicable Ownership Interest in the Treasury Portfolio), the appropriate aggregate
percentage of the aggregate principal amount at maturity of the Treasury Portfolio and (4)
Applicable Ownership Interests in Notes, the appropriate aggregate principal amount of the
underlying Notes.

“Vice President” means any vice president, whether or not designated by a number or a word or
words added before or after the title “vice president.”

“VWAP” has the meaning set forth in Section 5.01(a).

Section 1.02. Compliance Certificates and Opinions. Except as otherwise expressly provided
by this Agreement, upon any application or request by the Company to the Purchase Contract Agent to
take any action in accordance with any provision of this Agreement, the Company shall furnish to
the Purchase Contract Agent an Officers’ Certificate stating that all conditions precedent, if any,
provided for in this Agreement relating to the proposed action have been complied with and an
Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if
any, have been complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision of this Agreement
relating to such particular application or request, no additional certificate or opinion need be
furnished.

 

20

 

Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Agreement (other than the Officers’ Certificate provided for in Section 10.05) shall
include:

(i) a statement that each individual signing such certificate or opinion has read
such condition or covenant and the definitions herein relating thereto;

(ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

(iii) a statement that, in the opinion of each such individual, he or she has made
such examination or investigation as is necessary to enable such individual to express an
informed opinion as to whether or not such condition or covenant has been complied with;
and

(iv) a statement as to whether, in the opinion of each such individual, such
condition or covenant has been complied with.

Section 1.03. Form of Documents Delivered to Purchase Contract Agent. In any case where
several matters are required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the opinion of, only one
such Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such matters in one or
several documents. Any certificate or opinion of an officer of the Company may be based, insofar
as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the matters upon which its certificate or opinion is
based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such matters are
erroneous.

Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Agreement, they may,
but need not, be consolidated and form one instrument.

 

21

 

Section 1.04. Acts of Holders; Record Dates. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Agreement to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in
person or by an agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to
the Purchase Contract Agent and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent shall be sufficient for
any purpose of this Agreement and (subject to Section 7.01) conclusive in favor of the Purchase
Contract Agent and the Company, if made in the manner provided in this Section.

(b) The fact and date of the execution by any Person of any such instrument or writing may be
proved in any manner that the Purchase Contract Agent deems sufficient.

(c) The ownership of Units shall be proved by the Security Register.

(d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Unit shall bind every future Holder of the same Unit and the Holder of every
Certificate evidencing such Unit issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the
Purchase Contract Agent or the Company in reliance thereon, whether or not notation of such action
is made upon such Certificate.

(e) The Company may set any date as a record date for the purpose of determining the Holders
of Outstanding Units entitled to give, make or take any request, demand, authorization, direction,
notice, consent, waiver or other action provided or permitted by this Agreement to be given, made
or taken by Holders. If any record date is set pursuant to this paragraph, the Holders of the
Outstanding Corporate Units and the Outstanding Treasury Units, as the case may be, on such record
date, and no other Holders, shall be entitled to take the relevant action with respect to the
Corporate Units or the Treasury Units, as the case may be, whether or not such Holders remain
Holders after such record date; provided that no such action shall be effective hereunder unless
taken prior to or on the applicable Expiration Date by Holders of the requisite number of
Outstanding Units on such record date. Nothing contained in this paragraph shall be construed to
prevent the Company from setting a new record date for any action for which a record date has
previously been set pursuant to this paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be cancelled and be of no effect), and nothing
contained in this paragraph shall be construed to render ineffective any action taken by Holders of
the requisite number of Outstanding Units on the date such action is taken. Promptly after any
record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable Expiration Date to be given
to the Purchase Contract Agent in writing and to each Holder in the manner set forth in Section
1.06.

 

22

 

With respect to any record date set pursuant to this Section 1.04(e), the Company may
designate any date as the “Expiration Date” and from time to time may change the Expiration Date to
any later day; provided that no such change shall be effective unless notice of the proposed new
Expiration Date is given to the Purchase Contract Agent in writing, and to each Holder in the
manner set forth in Section 1.06, prior to or on the existing Expiration Date. If an Expiration
Date is not designated with respect to any record date set pursuant to this Section, the Company
shall be deemed to have initially designated the 180th day after such record date as the Expiration
Date with respect thereto, subject to its right to change the Expiration Date as provided in this
paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day
after the applicable record date.

Section 1.05. 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 or
unsecured email, if, except as provided in the following paragraph, promptly confirmed by
telephone) mailed or 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. Except as otherwise provided in this
Agreement, all such communications shall be deemed to have been duly given when transmitted by
telecopier or other electronic methods or personally delivered or, in the case of a mailed notice,
upon receipt, in each case given or addressed as aforesaid.

The Purchase Contract Agent, the Collateral Agent, the Custodial Agent and the Securities
Intermediary (for purposes of this paragraph, collectively, the “Agent”) agrees to accept and act
upon instructions or directions pursuant to this Agreement sent by unsecured e-mail, facsimile
transmission or other similar unsecured electronic methods; provided, however, that (a) the party
providing such written instructions or directions, subsequent to such transmission, shall provide
the originally executed instructions or directions to the Agent in a timely manner, and (b) such
originally executed instructions or directions shall be signed by an authorized representative of
the party providing such instructions or directions. If the party elects to give the Agent e-mail
or facsimile instructions (or instructions by a similar electronic method) and the Agent in its
discretion elects to act upon such instructions or directions, the Agent’s understanding of such
instructions or directions shall be deemed controlling. The Agent shall not be liable for any
losses, costs or expenses arising directly or indirectly from the Agent’s reliance upon and
compliance with such instructions or directions notwithstanding such instructions or directions
conflict or are inconsistent with a subsequent written instruction or direction or if the
subsequent written instruction or direction is never received. The party providing electronic
instructions agrees to assume all risks arising out of the use of such electronic methods to submit
instructions and directions to the Agent, including without limitation the risk of
the Agent acting on unauthorized instructions or directions, and the risk of interception and
misuse by third parties.

 

23

 

The Purchase Contract Agent (if other than the Indenture Trustee) shall send to the Indenture
Trustee at the following address a copy of any notices in the form of Exhibits C, D, E, F, H, J, M,
N or O it sends or receives:

	 	 	The Bank of New York Mellon

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Section 1.06. Notice to Holders; Waiver. Where this Agreement provides for notice to Holders
of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at
its address as it appears in the Security Register, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice. In any case where notice to
Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so
mailed to any particular Holder shall affect the sufficiency of such notice with respect to other
Holders. Where this Agreement provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after the event, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Purchase Contract Agent, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Purchase Contract Agent shall constitute a sufficient notification for every
purpose hereunder.

Section 1.07. Effect of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect the construction
hereof.

Section 1.08. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the respective successors and assigns of the Company, the Purchase Contract Agent, the
Collateral Agent, the Custodial Agent and the Securities Intermediary, and the Holders from time to
time of the Units, 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 1.09. Separability Clause. In case any provision in this Agreement or in the Units
shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions hereof and thereof shall not in any
way be affected or impaired thereby.

 

24

 

Section 1.10. Benefits of Agreement. Nothing contained in this Agreement or in the Units,
express or implied, shall give to any Person, other than the parties hereto and their successors
hereunder and, to the extent provided hereby, the Holders, any benefits or any legal or equitable
right, remedy or claim under this Agreement. The Holders from time to time shall be beneficiaries
of this Agreement and shall be bound by all of the terms and conditions hereof and of the Units
evidenced by their Certificates by their acceptance of delivery of such Certificates.

Section 1.11. Governing Law; Waiver of Jury Trial. THIS AGREEMENT, THE UNITS AND THE
PURCHASE CONTRACTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK APPLICABLE TO AGREEMENTS MADE AND PERFORMED WHOLLY WITHIN SUCH STATE. The Company, the
Collateral Agent, the Custodial Agent, the Securities Intermediary and the Holders from time to
time of the Units, 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 Custodial Agent, the Securities Intermediary and
the Holders from time to time of the Units, acting through the Purchase Contract Agent as their
attorney-in-fact, irrevocably waive, to the fullest extent permitted by applicable law, any
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. Each of the Company, the Purchase Contract Agent, the Holders
from time to time of the Units, the Collateral Agent, the Custodial Agent and the Securities
Intermediary irrevocably waives, to the fullest extent permitted by applicable law, any and all
right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.

Section 1.12. Legal Holidays. In any case where any Contract Adjustment Payment Date shall
not be a Business Day (notwithstanding any other provision of this Agreement or the Units),
Contract Adjustment Payments, deferred Contract Adjustment Payments (including Compounded Contract
Adjustment Payments thereon), and other distributions shall not be paid on such date, but Contract
Adjustment Payments, deferred Contract Adjustment Payments (including Compounded Contract
Adjustment Payments thereon), and other distributions shall be paid on the next succeeding Business
Day; provided that no interest shall accrue or be payable by the Company or to any Holder in
respect of such delay.

 

25

 

In any case where the Purchase Contract Settlement Date or any Early Settlement Date or
Fundamental Change Early Settlement Date shall not be a Business Day (notwithstanding any other
provision of this Agreement or the Units), Purchase Contracts shall not be performed and Early
Settlement and Fundamental Change Early Settlement shall not be effected on such date, but Purchase
Contracts shall be performed or Early Settlement or Fundamental Change Early Settlement shall be
effected, as applicable, on the next succeeding Business Day with the same force and effect as if
made on such Purchase Contract Settlement Date, Early Settlement Date or Fundamental Change Early
Settlement Date, as applicable.

Section 1.13. Counterparts. This Agreement may be executed in any number of counterparts by
the parties hereto, each of which, when so executed and delivered, shall be deemed an original, but
all such counterparts shall together constitute one and the same instrument.

Section 1.14. Inspection of Agreement. A copy of this Agreement shall be available at all
reasonable times during normal business hours at the Corporate Trust Office for inspection by any
Holder or Beneficial Owner.

Section 1.15. Appointment of Financial Institution as Agent for the Company. The Company may
appoint a financial institution (which may be the Collateral Agent) to act as its agent in
performing its obligations and in accepting and enforcing performance of the obligations of the
Purchase Contract Agent and the Holders, under this Agreement and the Purchase Contracts, by giving
notice of such appointment in the manner provided in Section 1.05 hereof. Any such appointment
shall not relieve the Company in any way from its obligations hereunder.

Section 1.16. No Waiver. No failure on the part of the Company, the Purchase Contract Agent,
the Collateral Agent, the Custodial Agent, the Securities Intermediary or any of their respective
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 Company, the Purchase Contract Agent, the Collateral Agent, the Custodial Agent,
the Securities Intermediary or any of their respective 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.

 

26

 

ARTICLE 2

Certificate Forms

Section 2.01. Forms of Certificates Generally. The Certificates shall be in substantially
the form set forth in Exhibit A hereto (in the case of Corporate Units Certificates) or Exhibit B
hereto (in the case of Treasury Units Certificates),
with such letters, numbers or other marks of identification or designation and such legends or
endorsements printed, lithographed or engraved thereon as may be required by the rules of any
securities exchange on which the Units are listed or any depositary therefor, or as may,
consistently herewith, be determined by the officers of the Company executing such Certificates, as
evidenced by their execution of the Certificates.

The definitive Certificates shall be produced in any manner as determined by the officers of
the Company executing the Units evidenced by such Certificates, consistent with the provisions of
this Agreement, as evidenced by their execution thereof.

Every Global Certificate authenticated, executed on behalf of the Holders and delivered
hereunder shall bear a legend substantially in the form set forth in Exhibit A and Exhibit B for a
Global Certificate.

Section 2.02. Form of Purchase Contract Agent’s Certificate of Authentication. The form of
the Purchase Contract Agent’s certificate of authentication of the Units shall be in substantially
the form set forth on the form of the applicable Certificates.

ARTICLE 3

The Units

Section 3.01. Amount; Form and Denominations. The aggregate number of Units evidenced by
Certificates authenticated, executed on behalf of the Holders and delivered hereunder is limited to
19,550,000 Units, except for Certificates authenticated, executed and delivered upon registration
of transfer of, in exchange for, or in lieu of, other Certificates pursuant to Section 3.04,
Section 3.05, Section 3.10, Section 3.13, Section 3.14 or Section 8.05.

The Certificates shall be issuable only in registered form and only in denominations of a
single Corporate Unit or Treasury Unit and any integral multiple thereof.

Section 3.02. Rights and Obligations Evidenced by the Certificates. Each Corporate Units
Certificate shall evidence the number of Corporate Units specified therein, with each such
Corporate Unit representing (1) the ownership by the Holder thereof of an Applicable Ownership
Interest in Notes or an Applicable Ownership Interest in the Treasury Portfolio, as the case may
be, subject to the Pledge of such Applicable Ownership Interest in Notes or Applicable Ownership
Interest in the Treasury Portfolio (as specified in clause (i) of the definition of Applicable
Ownership Interest in the Treasury Portfolio), as the case may be, by such Holder pursuant to this
Agreement, and (2) the rights and obligations of the Holder thereof and the Company under one
Purchase Contract.

 

27

 

The Purchase Contract Agent is hereby authorized, as attorney-in-fact
for, and on behalf of, the Holder of each Corporate Unit, to pledge, pursuant to Article 11
hereof, the Applicable Ownership Interest in Notes, or the Applicable Ownership Interest in the
Treasury Portfolio (as specified in clause (i) of the definition of Applicable Ownership Interest
in the Treasury Portfolio) forming a part of such Corporate Unit, to the Collateral Agent for the
benefit of the Company, and to grant to the Collateral Agent, for the benefit of the Company, a
security interest in the right, title and interest of such Holder in such Applicable Ownership
Interest in Notes or Applicable Ownership Interest in the Treasury Portfolio (as specified in
clause (i) of the definition of Applicable Ownership Interest in the Treasury Portfolio) to secure
the obligation of the Holder under each Purchase Contract to purchase shares of Common Stock. To
effect such Pledge and grant such security interest, the Purchase Contract Agent on behalf of the
Holders of Corporate Units has, on the date hereof, delivered to the Collateral Agent the Notes
underlying the Applicable Ownership Interests in Notes.

Upon the formation of a Treasury Unit pursuant to Section 3.13, each Treasury Units
Certificate shall evidence the number of Treasury Units specified therein, with each such Treasury
Unit representing (1) the ownership by the Holder thereof of a 1/20, or 5.0%, undivided beneficial
ownership interest in a Treasury Security with a principal amount equal to $1,000, subject to the
Pledge of such interest by such Holder pursuant to this Agreement, and (2) the rights and
obligations of the Holder thereof and the Company under one Purchase Contract. The Purchase
Contract Agent is hereby authorized, as attorney-in-fact for, and on behalf of, the Holder of each
Treasury Unit, to pledge, pursuant to Article 11 hereof, such Holder’s interest in the Treasury
Security forming a part of such Treasury Unit to the Collateral Agent, for the benefit of the
Company, and to grant to the Collateral Agent, for the benefit of the Company, a security interest
in the right, title and interest of such Holder in such Treasury Security to secure the obligation
of the Holder under each Purchase Contract to purchase shares of Common Stock.

Prior to the purchase of shares of Common Stock under each Purchase Contract, such Purchase
Contract shall not entitle the Holder of a Unit to any of the rights of a holder of shares of
Common Stock, including, without limitation, the right to vote or receive any dividends or other
payments or distributions or to consent or to receive notice as a shareholder in respect of the
meetings of shareholders or for the election of directors of the Company or for any other matter,
or any other rights whatsoever as a shareholder of the Company.

Section 3.03. Execution, Authentication, Delivery and Dating. Subject to the provisions of
Section 3.13 and Section 3.14 hereof, upon the execution and delivery of this Agreement, and at any
time and from time to time thereafter, the Company may deliver Certificates executed by the Company
to the Purchase Contract Agent for authentication, execution on behalf of the Holders and delivery,
together with its Issuer Order for authentication of such Certificates, and the Purchase Contract
Agent in accordance with such Issuer Order shall authenticate, execute on behalf of the Holders and
deliver such Certificates.

 

28

 

The Certificates shall be executed on behalf of the Company by an Authorized Officer of the
Company. The signature of any such Authorized Officer on the Certificates may be manual or
facsimile.

Certificates bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Company shall bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such Certificates.

No Purchase Contract evidenced by a Certificate shall be valid until such Certificate has been
executed on behalf of the Holder by the manual or facsimile signature of an authorized signatory of
the Purchase Contract Agent, as such Holder’s attorney-in-fact. Such signature by an authorized
signatory of the Purchase Contract Agent shall be conclusive evidence that the Holder of such
Certificate has entered into the Purchase Contracts evidenced by such Certificate.

Each Certificate shall be dated the date of its authentication.

No Certificate shall be entitled to any benefit under this Agreement or be valid or obligatory
for any purpose unless there appears on such Certificate a certificate of authentication
substantially in the form provided for herein executed by an authorized signatory of the Purchase
Contract Agent by manual signature, and such certificate of authentication upon any Certificate
shall be conclusive evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder.

Section 3.04. Temporary Certificates. Pending the preparation of definitive Certificates,
the Company may execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent
shall authenticate, execute on behalf of the Holders, and deliver, in lieu of such definitive
Certificates, temporary Certificates which are in substantially the form set forth in Exhibit A or
Exhibit B hereto, as the case may be, with such letters, numbers or other marks of identification
or designation and such legends or endorsements printed, lithographed or engraved thereon as may be
required by the rules of any securities exchange on which the Corporate Units or Treasury Units, as
the case may be, are listed, or as may, consistently herewith, be determined by the officers of the
Company executing such Certificates, as evidenced by their execution of the Certificates.

If temporary Certificates are issued, the Company will cause definitive Certificates to be
prepared without unreasonable delay. After the preparation of definitive Certificates, the
temporary Certificates shall be exchangeable for definitive Certificates upon surrender of the
temporary Certificates at the Corporate Trust Office in New York City, at the expense of the
Company and without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Certificates, the Company shall execute and deliver to the Purchase
Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the
Holder, and deliver in exchange therefor, one or more definitive Certificates of like tenor and
denominations and evidencing a like number of Units as the temporary Certificate or Certificates so
surrendered. Until so exchanged, the temporary Certificates shall in all respects evidence the
same benefits and the same obligations with respect to the Units evidenced thereby as definitive
Certificates.

 

29

 

Section 3.05. Registration; Registration of Transfer and Exchange. The Purchase Contract
Agent shall keep at the Corporate Trust Office in New York City, a register (the “Security
Register”) in which, subject to such reasonable regulations as it may prescribe, the Purchase
Contract Agent shall provide for the registration of Certificates and of transfers of Certificates
(the Purchase Contract Agent, in such capacity, the “Security Registrar”). The Security Registrar
shall record separately the registration and transfer of the Certificates evidencing Corporate
Units and Treasury Units.

Upon surrender for registration of transfer of any Certificate at the Corporate Trust Office
in New York City, the Company shall execute and deliver to the Purchase Contract Agent, and the
Purchase Contract Agent shall authenticate, execute on behalf of the designated transferee or
transferees, and deliver, in the name of the designated transferee or transferees, one or more new
Certificates of any authorized denominations, of like tenor, and evidencing a like number of
Corporate Units or Treasury Units, as the case may be.

At the option of the Holder, Certificates may be exchanged for other Certificates, of any
authorized denominations and evidencing a like number of Corporate Units or Treasury Units, as the
case may be, upon surrender of the Certificates to be exchanged at the Corporate Trust Office in
New York City. Whenever any Certificates are so surrendered for exchange, the Company shall
execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall
authenticate, execute on behalf of the Holder, and deliver the Certificates which the Holder making
the exchange is entitled to receive.

All Certificates issued upon any registration of transfer or exchange of a Certificate shall
evidence the ownership of the same number of Corporate Units or Treasury Units, as the case may be,
and be entitled to the same benefits and subject to the same obligations under this Agreement as
the Corporate Units or Treasury Units, as the case may be, evidenced by the Certificate surrendered
upon such registration of transfer or exchange.

Every Certificate presented or surrendered for registration of transfer or exchange shall (if
so required by the Purchase Contract Agent) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Purchase Contract Agent duly
executed by the Holder thereof or its attorney duly authorized in writing.

 

30

 

No service charge shall be made for any registration of transfer or exchange of a Certificate,
but the Company and the Purchase Contract Agent may require payment from the Holder of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Certificates, other than any exchanges pursuant to Section
3.04, Section 3.05(ii) and Section 8.05 not involving any transfer.

Notwithstanding the foregoing, the Company shall not be obligated to execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to
authenticate, execute on behalf of the Holder and deliver any Certificate in exchange for any other
Certificate presented or surrendered for registration of transfer or for exchange on or after the
Business Day immediately preceding the earliest to occur of any Early Settlement Date with respect
to such Certificate, any Fundamental Change Early Settlement Date with respect to such Certificate,
the Purchase Contract Settlement Date or the Termination Date. In lieu of delivery of a new
Certificate, upon satisfaction of the applicable conditions specified above in this Section and
receipt of appropriate registration or transfer instructions from such Holder, the Purchase
Contract Agent shall:

(i) if the Purchase Contract Settlement Date (including upon any Cash Settlement) or
an Early Settlement Date or a Fundamental Change Early Settlement Date with respect to
such other Certificate (or portion thereof) has occurred, deliver the shares of Common
Stock issuable in respect of the Purchase Contracts forming a part of the Units evidenced
by such other Certificate (or portion thereof); or

(ii) if a Termination Event, Early Settlement, or Fundamental Change Early Settlement
shall have occurred prior to the Purchase Contract Settlement Date, or a Cash Settlement
shall have occurred, transfer the Notes, the Treasury Securities, or the Applicable
Ownership Interests in the Treasury Portfolio, as the case may be, underlying such
Certificate, in each case subject to the applicable conditions and in accordance with the
applicable provisions of Section 3.15 and Article 5 hereof.

Section 3.06. Book-entry Interests. The Certificates will be issued in the form of one or
more fully registered Global Certificates, to be delivered to the Depositary or its custodian by,
or on behalf of, the Company. The Company hereby designates DTC as the initial Depositary. Such
Global Certificates shall initially be registered on the Security Register in the name of Cede &
Co., the nominee of the Depositary, and no Beneficial Owner will receive a definitive Certificate
representing such Beneficial Owner’s interest in such Global Certificate, except as provided in
Section 3.09. The Purchase Contract Agent shall enter into an agreement with the Depositary if so
requested by the Company. Following the issuance of such Global Certificates and unless and until
definitive,
and fully registered Certificates have been issued to Beneficial Owners pursuant to Section
3.09:

(i) the provisions of this Section 3.06 shall be in full force and effect;

 

31

 

(ii) the Company shall be entitled to deal with the Depositary for all purposes of this
Agreement (including, without limitation, making Contract Adjustment Payments and receiving
approvals, votes or consents hereunder) as the Holder of the Units and the sole holder of the
Global Certificates and shall have no obligation to the Beneficial Owners; provided that a
Beneficial Owner may directly enforce against the Company, without any consent, proxy, waiver or
involvement of the Depositary of any kind, such Beneficial Owner’s right to receive a definitive
Certificate representing the Units beneficially owned by such Beneficial Owner, as set forth in
Section 3.09;

(iii) to the extent that the provisions of this Section 3.06 conflict with any other
provisions of this Agreement, the provisions of this Section 3.06 shall control; and

(iv) except as set forth in the proviso of clause (ii) of this Section 3.06, the rights of the
Beneficial Owners shall be exercised only through the Depositary and shall be limited to those
established by law and agreements between such Beneficial Owners and the Depositary or the
Depositary Participants. The Depositary will make book-entry transfers among Depositary
Participants and receive and transmit Contract Adjustment Payments to such Depositary Participants.

Transfers of securities evidenced by Global Certificates shall be made through the facilities of
the Depositary, and any cancellation of, or increase or decrease in the number of, such securities
(including the creation of Treasury Units and the recreation of Corporate Units pursuant to Section
3.13 and Section 3.14 respectively) shall be accomplished by making appropriate annotations on the
Schedule of Increases and Decreases set forth in such Global Certificate.

Section 3.07. Notices to Holders. Whenever a notice or other communication to the Holders is
required to be given under this Agreement, the Company or the Company’s agent shall give such
notices and communications to the Holders and, with respect to any Units registered in the name of
the Depositary or the nominee of the Depositary, the Company or the Company’s agent shall, except
as set forth herein, have no obligations to the Beneficial Owners.

Section 3.08. Appointment of Successor Depositary. If the Depositary elects to discontinue
its services as securities depositary with respect to the Units, the Company may, in its sole
discretion, appoint a successor Depositary with respect to the Units.

 

32

 

Section 3.09. Definitive Certificates.

If:

(i) the Depositary notifies the Company that it is unwilling or unable to continue its
services as securities depositary with respect to the Units and no successor Depositary has been
appointed pursuant to Section 3.08 within 90 days after the Company’s receipt of such notice;

(ii) the Depositary ceases to be a “clearing agency” registered under Section 17A of the
Exchange Act when the Depositary is required to be so registered to act as the Depositary and the
Company receives notice of such cessation, and no successor Depositary has been appointed pursuant
to Section 3.08 within 90 days after the Company’s receipt of such notice;

(iii) following the request of any Holder or Beneficial Owner of Corporate Units or Treasury
Units seeking to exercise or enforce its rights under such Corporate Units or Treasury Units; or

(iv) to the extent permitted by the Depositary, the Company determines at any time that the
Units shall no longer be represented by Global Certificates and shall inform such Depositary of
such determination and participants in such Depositary elect to withdraw their beneficial interests
in the Units from such Depositary, following notification by the Depositary of their right to do
so;

then (x) definitive Certificates shall be prepared by the Company with respect to such Units and
delivered to the Purchase Contract Agent and (y) upon surrender of the Global Certificates
representing the Units by the Depositary, accompanied by registration instructions, the Company
shall cause definitive Certificates to be delivered to Beneficial Owners in accordance with
instructions provided by the Depositary. The Company and the Purchase Contract Agent shall not be
liable for any delay in delivery of such instructions and may conclusively rely on and shall be
authorized and protected in relying on, such instructions. Each definitive Certificate so
delivered shall evidence Units of the same kind and tenor as the Global Certificate so surrendered
in respect thereof.

Section 3.10. Mutilated, Destroyed, Lost and Stolen Certificates. If any mutilated
Certificate is surrendered to the Purchase Contract Agent, the Company shall execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf
of the Holder, and deliver in exchange therefor, a new Certificate, evidencing the same number of
Corporate Units or Treasury Units, as the case may be, and bearing a Certificate number not
contemporaneously outstanding.

 

33

 

If there shall be delivered to the Company and the Purchase Contract Agent (i) evidence to
their satisfaction of the destruction, loss or theft of any Certificate, and (ii) such security or
indemnity as may be required by them to hold
each of them and any agent of any of them harmless, then, in the absence of notice to the
Company or the Purchase Contract Agent that such Certificate has been acquired by a protected
purchaser, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase
Contract Agent shall authenticate, execute on behalf of the Holder, and deliver to the Holder, in
lieu of any such destroyed, lost or stolen Certificate, a new Certificate, evidencing the same
number of Corporate Units or Treasury Units, as the case may be, and bearing a Certificate number
not contemporaneously outstanding.

Notwithstanding the foregoing, the Company shall not be obligated to execute and deliver to
the Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to
authenticate, execute on behalf of the Holder, and deliver to the Holder, with respect to such
mutilated, destroyed, lost or stolen Certificate a new Certificate on or after the Business Day
immediately preceding the earliest of any Early Settlement Date, any Fundamental Change Early
Settlement Date, the Purchase Contract Settlement Date or the Termination Date. In lieu of
delivery of a new Certificate, upon satisfaction of the applicable conditions specified above in
this Section and receipt of appropriate registration or transfer instructions from such Holder, the
Purchase Contract Agent shall:

(i) if the Purchase Contract Settlement Date (including upon any Cash Settlement), an
Early Settlement Date or a Fundamental Change Early Settlement Date with respect to such
lost, stolen, destroyed or mutilated Certificate has occurred, deliver the shares of
Common Stock issuable in respect of the Purchase Contracts forming a part of the Units
evidenced by such Certificate; and

(ii) if a Termination Event, Fundamental Change Early Settlement or an Early
Settlement with respect to such mutilated, destroyed, lost or stolen Certificate shall
have occurred prior to the Purchase Contract Settlement Date or a Cash Settlement shall
have occurred, transfer the Notes, the Treasury Securities or the Applicable Ownership
Interests in the Treasury Portfolio, as the case may be, underlying such Certificate, in
each case subject to the applicable conditions and in accordance with the applicable
provisions of Section 3.15 and Article 5 hereof.

Upon the issuance of any new Certificate under this Section, the Company and the Purchase
Contract Agent may require the payment by the Holder of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other fees and expenses
(including, without limitation, the fees and expenses of the Purchase Contract Agent) connected
therewith.

Every new Certificate issued pursuant to this Section in lieu of any destroyed, lost or stolen
Certificate shall constitute an original additional contractual obligation of the Company and of
the Holder in respect of the Units evidenced thereby, whether or not the destroyed, lost or stolen
Certificate (and the
Units evidenced thereby) shall be at any time enforceable by anyone, and shall be entitled to
all the benefits and be subject to all the obligations of this Agreement equally and
proportionately with any and all other Certificates delivered hereunder.

 

34

 

The provisions of this Section are exclusive and shall preclude, to the extent lawful, all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Certificates.

Section 3.11. Persons Deemed Owners. Prior to due presentment of a Certificate for
registration of transfer, the Company and the Purchase Contract Agent, and any agent of the Company
or the Purchase Contract Agent, may treat the Person in whose name such Certificate is registered
as the owner of the Units evidenced thereby for purposes of (subject to any applicable record date)
any payment or distribution with respect to the Applicable Ownership Interests in Notes, on the
Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (ii) of the
definition of Applicable Ownership Interests in the Treasury Portfolio) or payment of Contract
Adjustment Payments and performance of the Purchase Contracts and for all other purposes whatsoever
in connection with such Units, whether or not such payment, distribution, or performance shall be
overdue and notwithstanding any notice to the contrary, and neither the Company nor the Purchase
Contract Agent, nor any agent of the Company or the Purchase Contract Agent, shall be affected by
notice to the contrary.

None of the Purchase Contract Agent or the Securities Registrar shall have any responsibility
or obligation to any Beneficial Owner in Units represented by a Global Certificate or other Person
with respect to the accuracy of the records of the Depositary or its nominee or of any agent
member, with respect to any ownership interest in the Units or with respect to the delivery to any
agent member, Beneficial Owner or other Person (other than the Depositary) of any notice or the
payment of any amount, under or with respect to such Units. All notices and communications to be
given to the Holders and all payments to be made to Holders pursuant to the Units and this
Agreement shall be given or made only to or upon the order of the registered holders (which shall
be the Depositary or its nominee in the case of a Global Certificate). The rights of Beneficial
Owners in the Units underlying a Global Certificate shall be exercised only through the Depositary
subject to its applicable procedures. The Purchase Contract Agent and the Securities Registrar
shall be entitled to rely and shall be fully protected in relying upon information furnished by the
Depositary with respect to its members, participants and any Beneficial Owners. The Purchase
Contract Agent and the Securities Registrar shall be entitled to deal with the Depositary, and any
nominee thereof, that is the registered holder of any Global Certificate for all purposes of this
Agreement relating to such Global Certificate (including the payment of principal, premium, if any,
and interest and the giving of instructions or directions by or to the Beneficial Owner in any
Units underlying such Global Certificate) as the sole Holder of such

 

35

 

 Global Certificate and shall
have no obligations to the Beneficial Owners thereof.
 None of the Purchase Contract Agent or
the Securities Registrar shall have any responsibility or liability for any acts or omissions of
the Depositary with respect to any Units underlying such Global Certificate, for the records of the
Depositary, including records in respect of beneficial ownership interests in respect of Units
underlying such Global Certificate, for any transactions between the Depositary and any agent
member or between or among the Depositary, any such agent member and/or any Holder or Beneficial
Owner in any Units underlying such Global Certificate, or for any transfers of beneficial interests
in any Units underlying such Global Certificate.

Notwithstanding the foregoing, with respect to any Global Certificate, nothing contained
herein shall prevent the Company, the Purchase Contract Agent or any agent of the Company or the
Purchase Contract Agent, from giving effect to any written certification, proxy or other
authorization furnished by the Depositary (or its nominee), as a Holder, with respect to such
Global Certificate, or impair, as between such Depositary and the related Beneficial Owner, the
operation of customary practices governing the exercise of rights of the Depositary (or its
nominee) as Holder of such Global Certificate. None of the Company, the Purchase Contract Agent or
any agent of the Company or the Purchase Contract Agent will have any responsibility or liability
for any aspect of the records relating to or payments made on account of beneficial ownership
interests of a Global Certificate or maintaining, supervising or reviewing any records relating to
such beneficial ownership interests.

Section 3.12. Cancellation. All Certificates surrendered for delivery of shares of Common
Stock on or after the Purchase Contract Settlement Date or in connection with an Early Settlement
or a Fundamental Change Early Settlement or for delivery of the Notes underlying the Applicable
Ownership Interests in Notes, the Applicable Ownership Interests in the Treasury Portfolio or
Treasury Securities, as the case may be, after the occurrence of a Termination Event or pursuant to
a Cash Settlement, an Early Settlement or a Fundamental Change Early Settlement, a Collateral
Substitution, or upon the registration of transfer or exchange of a Unit, shall, if surrendered to
any Person other than the Purchase Contract Agent, be delivered to the Purchase Contract Agent
along with appropriate written instructions regarding the cancellation thereof and, if not already
cancelled, shall be promptly cancelled by it. The Company may at any time deliver to the Purchase
Contract Agent for cancellation any Certificates previously authenticated, executed and delivered
hereunder that the Company may have acquired in any manner whatsoever, and all Certificates so
delivered shall, upon an Issuer Order, be promptly cancelled by the Purchase Contract Agent. No
Certificates shall be authenticated, executed on behalf of the Holder and delivered in lieu of or
in exchange for any Certificates cancelled as provided in this Section 3.12, except as expressly
permitted by this Agreement. All cancelled Certificates held by the Purchase Contract Agent shall
be disposed of in accordance with its customary practices.

 

36

 

If the Company or any Affiliate of the Company shall acquire any Certificate, such acquisition
shall not operate as a cancellation of such Certificate unless and until such Certificate is
delivered to the Purchase Contract Agent cancelled or for cancellation.

Section 3.13. Creation of Treasury Units by Substitution of Treasury Securities. (a) Subject
to the conditions set forth in this Agreement, and subject to the limitations on a Collateral
Substitution in connection with an Optional Remarketing as set forth under Section 5.02(a) below, a
Holder of Corporate Units may, at any time from and after the date of this Agreement, other than
during the Blackout Period or after a Successful Remarketing, effect a Collateral Substitution and
separate the Notes underlying the Pledged Applicable Ownership Interests in Notes in respect of
such Holder’s Corporate Units by substituting for such Pledged Applicable Ownership Interests in
Notes for which Collateral Substitution is being made, Treasury Securities in an aggregate
principal amount at maturity equal to the aggregate principal amount of the Notes underlying the
Pledged Applicable Ownership Interests in Notes; provided that Holders may make Collateral
Substitutions only in integral multiples of 20 Corporate Units. To effect such substitution, the
Holder must:

(1) Transfer to the Collateral Agent, for credit to the Collateral Account, Treasury
Securities or security entitlements with respect thereto having a Value equal to the aggregate
principal amount of the Notes underlying the Pledged Applicable Ownership Interests in Notes for
which such Collateral Substitution is made, which must be purchased in the open market at such
Holder’s expense unless otherwise owned by such Holder; and

(2) Transfer the related Corporate Units to the Purchase Contract Agent accompanied by a
notice to the Purchase Contract Agent, substantially in the form of Exhibit C hereto, whereupon the
Purchase Contract Agent shall promptly provide an instruction to such effect to the Collateral
Agent, substantially in the form of Exhibit F hereto.

Upon confirmation that the Treasury Securities described in clause (1) above or security
entitlements with respect thereto have been credited to the Collateral Account and receipt of the
instruction to the Collateral Agent described in clause (2) above, the Collateral Agent shall
release such Pledged Applicable Ownership Interests in Notes from the Pledge and instruct the
Securities Intermediary by a notice, substantially in the form of Exhibit G hereto, to Transfer the
Notes underlying such Pledged Applicable Ownership Interests in Notes to the Purchase Contract
Agent for distribution to such Holder, free and clear of the Pledge created hereby.

Upon credit to the Collateral Account of Treasury Securities or security entitlements with
respect thereto delivered by a Holder of Corporate Units and receipt of the related instruction
from the Collateral Agent, the Securities Intermediary shall promptly Transfer the Notes underlying
the appropriate
Pledged Applicable Ownership Interests in Notes to the Purchase Contract Agent for
distribution to such Holder, free and clear of the Pledge created hereby.

 

37

 

Upon receipt of the Notes underlying such Pledged Applicable Ownership Interests in Notes, the
Purchase Contract Agent shall promptly:

(i) cancel the related Corporate Units;

(ii) Transfer the Notes to the Holder; and

(iii) deliver Treasury Units in book-entry form, or if applicable, authenticate, execute on
behalf of such Holder and deliver Treasury Units in the form of a Treasury Units Certificate
executed by the Company in accordance with Section 3.03 evidencing the same number of Purchase
Contracts as were evidenced by the cancelled Corporate Units.

Holders who elect to separate the Notes by substituting Treasury Securities for Applicable
Ownership Interest in Notes shall be responsible for any fees or expenses (including, without
limitation, fees and expenses payable to the Collateral Agent) attributable to such Collateral
Substitution, and neither the Company nor the Purchase Contract Agent shall be responsible for any
such fees or expenses.

(b) In the event a Holder making a Collateral Substitution pursuant to this Section 3.13 fails
to effect a book-entry transfer of the Corporate Units or fails to deliver Corporate Units
Certificates to the Purchase Contract Agent after depositing Treasury Securities with the
Securities Intermediary, any distributions on the Notes underlying the Applicable Ownership
Interests in Notes constituting a part of such Corporate Units, shall be held in the name of the
Purchase Contract Agent or its nominee in trust for the benefit of such Holder, until such
Corporate Units are so transferred or the Corporate Units Certificate is so delivered, as the case
may be, or such Holder provides evidence satisfactory to the Company and the Purchase Contract
Agent that such Corporate Units Certificate has been destroyed, lost or stolen, together with any
indemnity that may be required by the Purchase Contract Agent and the Company.

(c) Except as described in Section 5.03 or in this Section 3.13 or in connection with a Cash
Settlement, an Early Settlement, a Fundamental Change Early Settlement or a Termination Event, for
so long as the Purchase Contract underlying a Corporate Unit remains in effect, such Corporate
Units shall not be separable into its constituent parts, and the rights and obligations of the
Holder in respect of the Applicable Ownership Interests in Notes or Applicable Ownership Interests
in the Treasury Portfolio, as the case may be, and the Purchase Contract comprising such Corporate
Units may be acquired, and may be transferred and exchanged, only as a Corporate Unit.

 

38

 

Section 3.14. Recreation of Corporate Units. (a) Subject to the conditions set forth in this
Agreement, and subject to the limitations on a Collateral Substitution in connection with an
Optional Remarketing, as set forth in Section 5.02(a) below, a Holder of Treasury Units may effect
a Collateral Substitution and recreate Corporate Units at any time from and after the date of this
Agreement, other than during the Blackout Period or after a Successful Remarketing; provided that
Holders of Treasury Units may only recreate Corporate Units in integral multiples of 20 Treasury
Units. To recreate Corporate Units, the Holder must:

(1) Transfer to the Collateral Agent for credit to the Collateral Account Notes or security
entitlements with respect thereto having an aggregate principal amount equal to the Value of the
Pledged Treasury Securities to be released, which must be purchased in the open market at such
Holder’s expense unless otherwise owned by such Holder; and

(2) Transfer the related Treasury Units to the Purchase Contract Agent accompanied by a notice
to the Purchase Contract Agent, substantially in the form of Exhibit C hereto, whereupon the
Purchase Contract Agent shall promptly provide an instruction to such effect to the Collateral
Agent, substantially in the form of Exhibit H hereto.

Upon confirmation that the Notes described in clause (1) above or security entitlements with
respect thereto have been credited to the Collateral Account and receipt of the instruction from
the Purchase Contract Agent described in clause (2) above, the Collateral Agent shall promptly
release such Pledged Treasury Securities from the Pledge and shall promptly instruct the Securities
Intermediary by a notice, substantially in the form of Exhibit I hereto, to Transfer such Pledged
Treasury Securities to the Purchase Contract Agent for distribution to such Holder, free and clear
of the Pledge created hereby.

The substituted Notes will be pledged to the Company through the Collateral Agent to secure
such Holder’s obligation to purchase shares of Common Stock under the related Purchase Contract.

Upon credit to the Collateral Account of Notes or security entitlements with respect thereto
delivered by a Holder of Treasury Units and receipt of the related instruction from the Collateral
Agent, the Securities Intermediary shall promptly Transfer the Pledged Treasury Securities to the
Purchase Contract Agent for distribution to such Holder, free and clear of the Pledge created
hereby.

Upon receipt of such Treasury Securities, the Purchase Contract Agent shall promptly:

(i) cancel the related Treasury Units;

(ii) transfer the Treasury Securities to the Holder; and

 

39

 

(iii) deliver Corporate Units in book-entry form or, if applicable, authenticate, execute on
behalf of such Holder and deliver Corporate Units in the form of a Corporate Units Certificate
executed by the Company in accordance with Section 3.03 evidencing the same number of Purchase
Contracts as were evidenced by the cancelled Treasury Units.

Holders who elect to recreate Corporate Units shall be responsible for any fees or expenses
(including, without limitation, fees and expenses payable to the Collateral Agent), attributable to
such Collateral Substitution and neither the Company nor the Purchase Contract Agent shall be
responsible for any such fees or expenses.

(b) Except as provided in Section 5.03 or in this Section 3.14 or in connection with a Cash
Settlement, an Early Settlement, a Fundamental Change Early Settlement or a Termination Event, for
so long as the Purchase Contract underlying a Treasury Unit remains in effect, such Treasury Unit
shall not be separable into its constituent parts and the rights and obligations of the Holder of
such Treasury Unit in respect of the interest in the Treasury Security and the Purchase Contract
comprising such Treasury Unit may be acquired, and may be transferred and exchanged, only as a
Treasury Unit.

Section 3.15. Transfer of Collateral Upon Occurrence of Termination Event. (a) Upon receipt
by the Collateral Agent of written notice pursuant to Section 5.07 hereof from the Company or the
Purchase Contract Agent that a Termination Event has occurred, the Collateral Agent shall promptly
release all Collateral from the Pledge and shall promptly instruct the Securities Intermediary to
Transfer:

(i) any Notes underlying Pledged Applicable Ownership Interests in Notes or security
entitlements with respect thereto or Pledged Applicable Ownership Interests in the
Treasury Portfolio;

(ii) any Pledged Treasury Securities;

(iii) any payments made by Holders (or the Permitted Investments of such payments)
pursuant to Section 5.03 hereof; and

(iv) any Proceeds and all other payments the Collateral Agent receives in respect of
the foregoing,

 

40

 

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 the Pledge created hereby; provided,
however, if any Holder or Beneficial Owner shall be entitled to receive Notes in an aggregate
principal amount of less than $1,000, or greater than $1,000 but not in an integral multiple of
$1,000, the Purchase Contract Agent shall request, on behalf of such Holder or Beneficial Owner,
pursuant to the Indenture that the Company shall cause the Notes Issuer to
issue Notes in denominations of $50, or integral multiples thereof, in exchange for Notes in
denominations of $1,000 or integral multiples thereof; and provided further, if any Holder shall be
entitled to receive, with respect to its Pledged Applicable Ownership Interests in the Treasury
Portfolio or its Pledged Treasury Securities, any securities having a principal amount at maturity
of less than $1,000, the Purchase Contract Agent shall dispose of such Pledged Applicable Ownership
Interests in the Treasury Portfolio or Pledged Treasury Securities for cash and deliver to such
Holder cash in lieu of delivering the Pledged Applicable Ownership Interests in the Treasury
Portfolio or Pledged Treasury Securities, as the case may be.

(b) Notwithstanding anything to the contrary in clause (a) of this Section 3.15, 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 Notes underlying Pledged Applicable Ownership Interests in Notes, Pledged Applicable
Ownership Interests in the Treasury Portfolio, Pledged Treasury Securities and payments by Holders
(or the Permitted Investments of such payments) pursuant to Section 5.03 and Proceeds and all other
payments received by the Collateral Agent in respect of the foregoing, as the case may be, as
provided by this Section 3.15, the Purchase Contract Agent shall use its best efforts to obtain an
opinion of a nationally recognized law firm to the effect that, notwithstanding 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 3.15, and shall deliver or cause to be
delivered 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
Notes underlying Pledged Applicable Ownership Interests in Notes, Pledged Applicable Ownership
Interests in the Treasury Portfolio, Pledged Treasury Securities and the payments by Holders (or
the Permitted Investments of such payments) pursuant to Section 5.03 hereof and Proceeds and all
other payments received by the Collateral Agent in respect of the foregoing, as the case may be, as
provided in this Section 3.15, then the Purchase Contract Agent shall within fifteen days after the
occurrence of such Termination Event commence 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 Notes underlying Pledged Applicable
Ownership Interests in Notes, Pledged Applicable Ownership Interests in the Treasury Portfolio,
Pledged Treasury Securities and the payments by Holders (or the Permitted Investments of such
payments) pursuant to Section 5.03 hereof and Proceeds and all other payments received by the
Collateral Agent in respect of the foregoing, or as the case may be, as provided by this Section
3.15.

 

41

 

(c) Upon the occurrence of a Termination Event and the Transfer to the Purchase Contract Agent
of the Notes underlying Pledged Applicable Ownership Interests in Notes, the appropriate Pledged
Applicable Ownership Interests in the Treasury Portfolio or the Pledged Treasury Securities, as the
case may be, pursuant to Section 3.15, the Purchase Contract Agent shall request transfer
instructions with respect to such Notes, Applicable Ownership Interests in the Treasury Portfolio
or Pledged Treasury Securities, as the case may be, from each Holder by written request,
substantially in the form of Exhibit D hereto, mailed to such Holder at its address as it appears
in the Security Register.

(d) Upon book-entry transfer of the Corporate Units or the Treasury Units or delivery of a
Corporate Units Certificate or Treasury Units Certificate to the Purchase Contract Agent with such
transfer instructions, the Purchase Contract Agent shall transfer the Notes underlying Pledged
Applicable Ownership Interests in Notes, the Pledged Applicable Ownership Interests in the Treasury
Portfolio or Pledged Treasury Securities, as the case may be, underlying such Corporate Units or
Treasury Units, as the case may be, to such Holder by book-entry transfer, or other appropriate
procedures, in accordance with such instructions and, in the case of the Notes underlying Pledged
Applicable Ownership Interests in Notes, in accordance with the terms of the Indenture. In the
event a Holder of Corporate Units or Treasury Units fails to effect such transfer or delivery, the
Notes underlying Pledged Applicable Ownership Interests in Notes, the Pledged Applicable Ownership
Interests in the Treasury Portfolio or Pledged Treasury Securities, as the case may be, underlying
such Corporate Units of Treasury Units, as the case may be, and any distributions thereon, shall be
held in the name of the Purchase Contract Agent or its nominee in trust for the benefit of such
Holder, until the earlier to occur of:

(i) the transfer of such Corporate Units or Treasury Units or surrender of the
Corporate Units Certificate or Treasury Units Certificate or the receipt by the Company
and the Purchase Contract Agent from such Holder of satisfactory evidence that such
Corporate Units Certificate or Treasury Units Certificate has been destroyed, lost or
stolen, together with any indemnity that may be required by the Purchase Contract Agent
and the Company; and

(ii) the expiration of the time period specified by the applicable law governing
abandoned property in the state in which the Purchase Contract Agent holds such property.

Section 3.16. No Consent to Assumption. Each Holder of a Unit, by acceptance thereof, shall
be deemed to have expressly withheld any consent to the assumption under Section 365 of the
Bankruptcy Code or otherwise, of the Purchase Contract by the Company or its trustee, receiver,
liquidator or a person or entity performing similar functions in the event that the Company becomes
a debtor under the Bankruptcy Code or subject to other similar state or Federal law providing for
reorganization or liquidation.

 

42

 

Section 3.17. Substitutions. Whenever a Holder has the right to substitute Treasury
Securities or Notes underlying Applicable Ownership Interests in Notes, as the case may be, or
security entitlements for any of them for financial assets held in the Collateral Account, such
substitution shall not constitute a novation of the security interest created hereby.

ARTICLE 4

The Notes

Section 4.01. Interest Payments; Rights to Interest Payments Preserved. (a) The Collateral
Agent shall transfer all income and distributions received by it on account of the Notes underlying
Pledged Applicable Ownership Interests in Notes (if the Notes underlying Pledged Applicable
Ownership Interests in Notes are registered in the name of the Collateral Agent), the Pledged
Applicable Ownership Interests in the Treasury Portfolio or Permitted Investments from time to time
held in the Collateral Account to the Purchase Contract Agent (ABA No. 021000018, Account No. GLA#
111-565, for further credit to 560101, Re: PPL Equity Units II) for distribution to the applicable
Holders as provided in this Agreement and the Purchase Contracts.

(b) Any payment on any Note underlying Applicable Ownership Interests in Notes or any
distribution on any Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (ii) of the definition of Applicable Ownership Interest in the Treasury Portfolio), as the
case may be, which is paid on any Payment Date shall, subject to receipt thereof by the Purchase
Contract Agent from the Notes Issuer or from the Collateral Agent as provided in Section 4.01(a)
above, be paid to the Person in whose name the Corporate Units Certificate (or one or more
Predecessor Corporate Units Certificates) of which such Applicable Ownership Interest in Notes or
Applicable Ownership Interests in the Treasury Portfolio, as the case may be, forms a part is
registered at the close of business on the Record Date for such Payment Date.

(c) Each Corporate Units Certificate evidencing Applicable Ownership Interests in Notes or
Applicable Ownership Interests in the Treasury Portfolio delivered under this Agreement upon
registration of transfer of or in exchange for or in lieu of any other Corporate Units Certificate
shall carry the right to accrued and unpaid interest or distributions, and to accrue interest or
distributions, which were carried by Applicable Ownership Interests in Notes or Applicable
Ownership Interests in the Treasury Portfolio underlying such other Corporate Units Certificate.

 

43

 

(d) In the case of any Corporate Unit with respect to which (1) Cash Settlement of the
underlying Purchase Contract is properly effected pursuant to Section 5.03(a) hereof, (2) Early
Settlement of the underlying Purchase Contract is properly effected pursuant to Section 5.08
hereof, (3) Fundamental Change
Early Settlement of the underlying Purchase Contract is properly effected pursuant to Section
5.05(b)(ii) hereof or (4) a Collateral Substitution is properly effected pursuant to Section 3.13,
in each case on a date that is after any Record Date and prior to or on the next succeeding Payment
Date, interest in respect of the Notes underlying Applicable Ownership Interests in Notes or
distributions on Applicable Ownership Interests in the Treasury Portfolio, as the case may be,
underlying such Corporate Unit otherwise payable on such Payment Date shall be payable on such
Payment Date notwithstanding such Cash Settlement, Early Settlement, Fundamental Change Early
Settlement or Collateral Substitution, and such payment or distributions shall, subject to receipt
thereof by the Purchase Contract Agent, be payable to the Person in whose name the Corporate Units
Certificate (or one or more Predecessor Corporate Units Certificates) was registered at the close
of business on the Record Date.

(e) Except as otherwise expressly provided in Section 4.01(d) hereof, in the case of any
Corporate Unit with respect to which Cash Settlement, Early Settlement or Fundamental Change Early
Settlement of the underlying Purchase Contract is properly effected, or with respect to which a
Collateral Substitution is properly effected, payments attributable to the Notes underlying
Applicable Ownership Interests in Notes or distributions on Applicable Ownership Interests in the
Treasury Portfolio, as the case may be, that would otherwise be payable or made after the Purchase
Contract Settlement Date, Early Settlement Date, Fundamental Change Early Settlement Date or the
date of the Collateral Substitution, as the case may be, shall not be payable hereunder to the
Holder of such Corporate Units; provided, however, that to the extent that such Holder continues to
hold Separate Notes or Applicable Ownership Interests in the Treasury Portfolio that formerly
comprised a part of such Holder’s Corporate Units, such Holder shall be entitled to receive
interest on such Separate Notes or distributions on such Applicable Ownership Interests in the
Treasury Portfolio.

Section 4.02. Payments Prior to or on Purchase Contract Settlement Date. (a) Subject to the
provisions of Section 5.03(a), Section 5.05(b)(ii) and Section 5.08, and except as provided in
Section 4.02(b) below, if no Termination Event shall have occurred, all payments received by the
Securities Intermediary in respect of (1) the principal amount of the Notes underlying Pledged
Applicable Ownership Interests in Notes, (2) the Pledged Applicable Ownership Interests in the
Treasury Portfolio (as specified in clause (i) of the definition of Applicable Ownership Interest
in the Treasury Portfolio) and (3) the Pledged Treasury Securities, shall be credited to the
Collateral Account, to be invested in Permitted Investments until the Purchase Contract Settlement
Date, and transferred to the Company on the Purchase Contract Settlement Date as provided in
Section 5.03 hereof. Any balance remaining in the Collateral Account shall be released from the
Pledge and transferred to the Purchase Contract Agent for the benefit of the applicable Holders for

 

44

 

distribution to such Holders in accordance with their respective interests, free and clear of the
Pledge created hereby.
 The Company shall instruct the Collateral Agent in writing as to the
specific Permitted
Investments in which any payments made under this Section 4.02 shall be invested, provided,
however, that if the Company fails to deliver such instructions by 10:30 a.m. (New York City time)
on the day such payments are received by the Securities Intermediary, the Collateral Agent shall
instruct the Securities Intermediary to invest such payments in the Permitted Investments of the
type described in clause (6) of the definition of Permitted Investments, which have been designated
by the Company in writing from time to time in a standing instruction to the Securities
Intermediary which shall be effective until revoked or superseded. In no event shall the
Collateral Agent be liable for the selection of Permitted Investments or for investment losses
incurred thereon. The Collateral Agent shall have no liability in respect of losses incurred as a
result of the failure of the Company to provide timely written investment direction.

(b) All payments received by the Securities Intermediary in respect of (1) the Notes, (2) the
Applicable Ownership Interests in the Treasury Portfolio and (3) the Treasury Securities or
security entitlements with respect thereto, that, in each case, have been released from the Pledge
hereunder shall be transferred to the Purchase Contract Agent for the benefit of the applicable
Holders for distribution to such Holders in accordance with their respective interests.

Section 4.03. Notice and Voting. (a) Subject to Section 4.03(b) hereof, the Purchase
Contract Agent shall exercise, or refrain from exercising, any and all voting and other consensual
rights pertaining to the Notes underlying Pledged Applicable Ownership Interests in Notes or any
part thereof for any purpose not inconsistent with the terms of this Agreement. Upon receipt of
any notices and other communications in respect of any Notes underlying Pledged Applicable
Ownership Interests in Notes, including either notice of any meeting at which holders of the Notes
are entitled to vote or the 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, to execute and deliver to the Purchase Contract
Agent such proxies and other instruments in respect of such Notes underlying Pledged Applicable
Ownership Interests in Notes (in form and substance satisfactory to the Collateral Agent) as are
prepared by the Company and delivered to the Purchase Contract Agent with respect to the Notes
underlying Pledged Applicable Ownership Interests in Notes.

(b) Upon receipt of notice of any meeting at which holders of Notes are entitled to vote or
upon any solicitation of consents, waivers or proxies of holders of Notes, the Purchase Contract
Agent shall, as soon as practicable thereafter, mail, first class, postage pre-paid, to the Holders
of Corporate Units a notice:

(i) containing such information as is contained in the notice or solicitation;

 

45

 

(ii) stating that each Holder on the record date set by the Purchase Contract Agent
therefor (which, to the extent possible, shall be the same date as the record date set by
the Company for determining the holders of Notes entitled to vote) shall be entitled to
instruct the Purchase Contract Agent as to the exercise of the voting rights pertaining to
the Notes underlying the Applicable Ownership Interests in Notes that are a component of
their Corporate Units; and

(iii) stating the manner in which such instructions may be given.

Upon the written request of the Holders of Corporate Units on such record date received by the
Purchase Contract Agent at least six days prior to such meeting, the Purchase Contract Agent shall
endeavor insofar as practicable to vote or cause to be voted, in accordance with the instructions
set forth in such requests, the maximum aggregate principal amount of Notes (rounded down to the
nearest integral multiple of $1,000) as to which any particular voting instructions are received.
In the absence of specific instructions from the Holder of Corporate Units, the Purchase Contract
Agent shall abstain from voting the Notes underlying Applicable Ownership Interests in Notes that
are a component of such Corporate Units. The Company hereby agrees, if applicable, to solicit
Holders of Corporate Units to timely instruct the Purchase Contract Agent as to the exercise of
such voting rights in order to enable the Purchase Contract Agent to vote such Notes.

(c) The Holders of Corporate Units and the Holders of Treasury Units, in their capacity as
such Holders, shall have no voting or other rights in respect of the Common Stock.

Section 4.04. Payments to Purchase Contract Agent. The Securities Intermediary shall use
commercially reasonable efforts to deliver any payments required to be made by it to the Purchase
Contract Agent hereunder 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 11:00 a.m. (New York City time) on a Business Day, then the Securities
Intermediary shall use commercially reasonable efforts to deliver such payment to the Purchase
Contract Agent no later than 10:30 a.m. (New York City time) on the next succeeding Business Day.

Section 4.05. Payments Held in Trust. If the Purchase Contract Agent or any Holder shall
receive any payments on account of financial assets credited to the Collateral Account (other than
interest on the Notes or distributions on the Applicable Ownership Interests in the Treasury
Portfolio (as specified in clause (ii) of the definition thereof)) and not released therefrom in
accordance with this Agreement, the Purchase Contract Agent or such Holder shall hold such payments
as trustee of an express trust for the benefit of the Company and, upon receipt of an Officers’
Certificate of the Company so directing, promptly deliver such payments to the Securities
Intermediary for credit to the Collateral Account or to
the Company for application to the Obligations of the applicable Holder or Holders, and the
Purchase Contract Agent and Holders shall acquire no right, title or interest in any such payments
of principal amounts so received. The Purchase Contract Agent shall have no liability under this
Section 4.04 unless and until it has been notified in writing that such payment was delivered to it
erroneously and shall have no liability for any action taken, suffered or omitted to be taken prior
to its receipt of such notice.

 

46

 

ARTICLE 5

The Purchase Contracts

Section 5.01. Purchase of Shares of Common Stock. (a) Each Purchase Contract shall obligate
the Holder of the related Unit to purchase, and the Company to sell, on the Purchase Contract
Settlement Date at a price equal to the Stated Amount (the “Purchase Price”), a number of shares of
Common Stock equal to the Settlement Rate, together with cash, if applicable, in lieu of any
fractional share of Common Stock in accordance with Section 5.09, unless an Early Settlement, a
Fundamental Change Early Settlement or a Termination Event with respect to the Units of which such
Purchase Contract is a part shall have occurred. The “Settlement Rate” is equal to:

(i) If the Applicable Market Value is equal to or greater than the Threshold
Appreciation Price, the Settlement Rate will be 1.6133 shares of Common Stock (such
Settlement Rate being referred to as the “Minimum Settlement Rate”);

(ii) if the Applicable Market Value is less than the Threshold Appreciation Price but
greater than $25.30 (the “Reference Price”), the Settlement Rate will be a number of
 shares of Common Stock equal to the Stated Amount, divided by the Applicable Market Value;
and

(iii) if the Applicable Market Value is less than or equal to the Reference Price,
the Settlement Rate will be 1.9763 shares of Common Stock, (such Settlement Rate being
referred to as the “Maximum Settlement Rate”);

The Maximum Settlement Rate, Minimum Settlement Rate and the Applicable Market Value (as defined
below) are subject to adjustment as provided in Section 5.05 (and in each case rounded upward or
downward to the nearest 1/10,000th of a share).

The “Applicable Market Value” means the average VWAP of the Common Stock on each Trading Day
during the Observation Period, subject to adjustment under the circumstances set forth under
Section 5.05; provided, however, that if the Company enters into a Reorganization Event, the
Applicable Market Value will mean the value of an Exchange Property Unit.
Following the
occurrence of any such event, references herein to the purchase or issuance of shares of
Common Stock shall be construed to be references to settlement into Exchange Property Units. For
purposes of calculating the value of an Exchange Property Unit, (x) the value of any common stock
included in the Exchange Property Unit shall be determined using the average of the volume-weighted
average prices of such common stock on each Trading Day during the Observation Period (adjusted as
set forth under Section 5.05) and (y) the value of any other property, including securities other
than common stock included in the Exchange Property Unit, shall be the value of such property on
each Trading Day of the Observation Period (as determined in good faith by the Board of Directors,
whose determination shall be conclusive and described in a Board Resolution).

 

47

 

The “VWAP” means, in respect of Common Stock, for the relevant Trading Day, the per share
volume weighted average price as displayed under the heading Bloomberg VWAP on Bloomberg page
PPL<EQUITY>AQR (or its equivalent successor if such page is not available) in respect of the
period from the scheduled open of trading on the relevant Trading Day until the scheduled close of
trading on the relevant Trading Day (or if such volume-weighted average price is unavailable, the
market price of one share of Common Stock on such Trading Day determined, using a volume-weighted
average method, by a nationally recognized independent investment banking firm retained for this
purpose by the Company).

The “Observation Period” means the 20 consecutive Trading Days ending on the third scheduled
Trading Day immediately preceding the Purchase Contract Settlement Date; provided that if 20
Trading Days for the Common Stock have not occurred prior to the third scheduled Trading Day
immediately prior to the Purchase Contract Settlement Date, all remaining Trading Days shall be
deemed to occur on that third scheduled Trading Day and the VWAP for each of the remaining Trading
Days will be the VWAP on such third scheduled Trading Day or, if such day is not a Trading Day, the
Closing Price as determined in its reasonable discretion by a nationally recognized independent
investment banking firm retained by the Company for this purpose.

The “Closing Price” per share of Common Stock or other equity security means, on any date of
determination, the closing sale price or, if no closing sale price is reported, the last reported
sale price per share of Common Stock or other equity security on the New York Stock Exchange, Inc.
(the “NYSE”) on such date. If the Common Stock or other equity security is not listed for trading
on the NYSE on any date of determination, the Closing Price on such date of determination means the
closing sale price as reported in the composite transactions for the principal U.S. securities
exchange on which the Common Stock or other equity security is listed, or if the Common Stock or
other equity security is not so listed on a U.S. securities exchange, the last quoted bid price for
the Common Stock or other equity security in the over-the-counter market as reported by OTC Markets
Group Inc. or similar organization, or, if that bid price is not available, the market value of the
Common Stock or other equity security
on that date as determined by a nationally recognized independent investment banking firm
retained by the Company for this purpose.

 

48

 

A “Trading Day” means for purposes of determining a VWAP or Closing Price, a Business Day on
which the relevant exchange or quotation system is scheduled to be open for business and a day on
which there has not occurred or does not exist a Market Disruption Event.

A “Market Disruption Event” means any of the following events:

(1) any suspension of, or limitation imposed on, trading by the relevant exchange or quotation
system during the one-hour period prior to the close of trading for the regular trading session on
the exchange or quotation system (or for purposes of determining VWAP any period or periods
aggregating one half hour or longer) and whether by reason of movements in price exceeding limits
permitted by the relevant exchange or quotation system or otherwise relating to the Common Stock or
in futures or option contracts relating to the Common Stock on the relevant exchange or quotation
system;

(2) any event (other than a failure to open or a closure as described below) that disrupts or
impairs the ability of market participants during the one-hour period prior to the close of trading
for the regular trading session on the exchange or quotation system (or for purposes of determining
VWAP any period or periods aggregating one half hour or longer) in general to effect transactions
in, or obtain market values for, the Common Stock on the relevant exchange or quotation system or
futures or options contracts relating to the Common Stock on any relevant exchange or quotation
system; or

(3) the failure to open of the exchange or quotation system on which futures or options
contracts relating to the Common Stock are traded or the closure of such exchange or quotation
system prior to its respective scheduled closing time for the regular trading session on such day
(without regard to after hours or other trading outside the regular trading session hours) unless
such earlier closing time is announced by such exchange or quotation system at least one hour prior
to the earlier of the actual closing time for the regular trading session on such day and the
submission deadline for orders to be entered into such exchange or quotation system for execution
at the actual closing time on such day.

(b) Each Holder of a Corporate Unit or a Treasury Unit, by its acceptance of such Unit shall
be deemed to have:

(i) irrevocably appointed the Purchase Contract Agent as its attorney-in-fact to
enter into and perform the related Purchase Contract and this Agreement on its behalf and
in the name of and on behalf of such Holder (including, without limitation, the execution
of Certificates on behalf of such Holder);

 

49

 

(ii) agreed to be bound by the terms and provisions of such Unit, including but not
limited to the terms and provisions of the Purchase Contract and this Agreement;

(iii) irrevocably covenanted and agreed to perform its obligations under this
Agreement and such Unit, including but not limited to the Purchase Contract, for so long
as such Holder remains a Holder of a Corporate Unit or a Treasury Unit;

(iv) consented to the provisions hereof; and

(v) consented to, and agreed to be bound by, the Pledge of such Holder’s right, title
and interest in and to the Collateral, including the Applicable Ownership Interests in
Notes and the Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term) or the Treasury Securities pursuant to this
Agreement, and the delivery of the Notes underlying such Applicable Ownership Interests in
Notes by the Purchase Contract Agent to the Collateral Agent.

(c) Each Holder of a Corporate Unit or a Treasury Unit, by its acceptance thereof, shall be
deemed to have further covenanted and agreed that to the extent and in the manner provided in
Section 5.03 hereof, but subject to the terms thereof, on the Purchase Contract Settlement Date,
Proceeds of the Pledged Applicable Ownership Interests in Notes, the Pledged Applicable Ownership
Interests in the Treasury Portfolio or the Pledged Treasury Securities, as applicable, equal to the
Purchase Price shall be paid by the Collateral Agent to the Company in satisfaction of such
Holder’s obligations under such Purchase Contract and such Holder shall acquire no right, title or
interest in such Proceeds.

(d) Upon registration of transfer of a Certificate, the transferee shall be bound (without the
necessity of any other action on the part of such transferee) by the terms of this Agreement and
the Purchase Contracts underlying such Certificate and the transferor shall be released from the
obligations under this Agreement and the Purchase Contracts underlying the Certificate so
transferred.

The Company covenants and agrees, and each Holder of a Certificate, by its acceptance thereof,
likewise shall be deemed to have covenanted and agreed, to be bound by the provisions of this
paragraph.

(e) Promptly after the calculation of the Settlement Rate and the Applicable Market Value, the
Company shall give the Purchase Contract Agent notice thereof. All calculations and determinations
of the Settlement Rate and the Applicable Market Value and any adjustments to the Reference Price
or the Threshold Appreciation Price shall be made by the Company or its agent based on their good
faith calculations, and the Purchase Contract Agent shall have no responsibility with respect
thereto.

 

50

 

(f) If a Market Disruption Event occurs during a day that would otherwise constitute one of
the 20 Trading Days for determining the Applicable Market Value, the Company shall give the Holders
and the Purchase Contract Agent notice thereof on the calendar day on which such event occurs.

Section 5.02. Remarketing.

(a) Optional Remarketing. (i) Unless a Termination Event has occurred, the Company may elect,
at its option, to engage the Remarketing Agent(s), pursuant to the terms of the Remarketing
Agreement, to remarket the aggregate Notes underlying the aggregate Applicable Ownership Interests
in Notes that are components of Corporate Units, along with any Separate Notes, the holders of
which have elected to participate in such remarketing pursuant to the Indenture and Section 5.02(c)
below, into two tranches over a period of one or more days selected by the Company that fall during
the Optional Remarketing Period; provided that the Company may only elect to conduct an Optional
Remarketing if the Notes Issuer is not then deferring interest on the Notes.

(ii) The Company shall request that the Depositary notify the Depositary Participants
holding Corporate Units, Treasury Units and Separate Notes of the Company’s election to
conduct an Optional Remarketing no later than fifteen (15) days prior to the first day of
the Optional Remarketing Period.

(iii) If the Company elects to conduct an Optional Remarketing, by 11:00 a.m. (New
York City time) on the Business Day immediately preceding the first day of the Optional
Remarketing Period, the Purchase Contract Agent shall notify the Remarketing Agent(s) in
writing of the aggregate principal amount of Notes underlying the Pledged Applicable
Ownership Interests in Notes that are a part of the Corporate Units to be remarketed, and
the Custodial Agent shall notify in writing the Remarketing Agent(s) of the aggregate
principal amount of Separate Notes (if any) to be remarketed pursuant to Section 5.02(e)
below. Pursuant to the Remarketing Agreement, upon receipt of such notices from the
Purchase Contract Agent and the Custodial Agent, the Remarketing Agent(s) will use its
reasonable efforts to remarket such Notes for each tranche at the applicable Remarketing
Price.

(iv) The Optional Remarketing Date shall be the same for both tranches of Notes and
the settlements of both tranches shall be conditioned on each other.

(v) On the Business Day following the Optional Remarketing Date, the Company shall
notify Holders of Separate Notes who decided not to participate in the Optional
Remarketing how the Company allocated the Notes of such Holders between the two tranches.

 

51

 

(vi) If the Remarketing Agent(s) is able to remarket such Notes for at least the
applicable Remarketing Price in any Optional Remarketing in accordance with the
Remarketing Agreement (a “Successful Optional Remarketing”), the Collateral Agent shall
cause the Securities Intermediary to transfer to the Remarketing Agent(s) the remarketed
Notes underlying the Pledged Applicable Ownership Interests in Notes upon confirmation of
deposit to the Collateral Account of proceeds of such Successful Optional Remarketing
attributable to such Notes, and the Custodial Agent shall transfer the remarketed Separate
Notes to the Remarketing Agent(s) upon confirmation of receipt of proceeds of such
Successful Optional Remarketing attributable to such Separate Notes. Settlement shall
occur on the Optional Remarketing Settlement Date. Upon deposit in the Collateral Account
of such proceeds attributable to the remarketed Notes underlying the Pledged Applicable
Ownership Interest in Notes, the Collateral Agent shall (A) instruct the Securities
Intermediary to apply an amount equal to the Treasury Portfolio Purchase Price to purchase
the Treasury Portfolio from the Quotation Agent (the amount and issue of the U.S. Treasury
securities (or principal or interest strips thereof) constituting the Treasury Portfolio
to be determined by the Remarketing Agent(s)), (B) credit to the Collateral Account the
Applicable Ownership Interests in the Treasury Portfolio, and (C) promptly remit any
remaining portion of such proceeds to the Purchase Contract Agent for payment to the
Holders of Corporate Units, whereupon the Purchase Contract Agent shall make such payment
on the Optional Remarketing Settlement Date to the Holders pro rata in accordance with
their respective interests. With respect to any Separate Notes remarketed, the Custodial
Agent shall remit such proceeds of the Successful Optional Remarketing received from the
Remarketing Agent(s) to Holders of such Separate Notes.

(vii) Following the occurrence of a Successful Optional Remarketing, the Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of such term)
will be substituted as Collateral for the Pledged Applicable Ownership Interests in Notes
and will be held by the Collateral Agent in accordance with the terms hereof to secure the
Obligation of each Holder of Corporate Units, and the Holders of Corporate Units and the
Collateral Agent shall have such security interests, rights and obligations with respect
to the Applicable Ownership Interests in the Treasury Portfolio (as defined in clause (i)
of such term) as the Holder of Corporate Units and the Collateral Agent had in respect of
the Pledged Applicable Ownership Interests in Notes, subject to the Pledge thereof. Any
reference in this Agreement or the Certificates to the Pledged Applicable Ownership
Interests in Notes shall thereupon be deemed to be a reference to such Applicable
Ownership Interests in the Treasury Portfolio (as defined in clause (i) of such term). The
Company may cause to be made in any Corporate Units Certificates thereafter to be issued
such
change in phraseology and form (but not in substance) as may be appropriate to
reflect the substitution of the Applicable Ownership Interests in the Treasury Portfolio
(as defined in clause (i) of such term) for the Pledged Applicable Ownership Interests in
Notes as Collateral.

 

52

 

(viii) Following a Successful Optional Remarketing, the Remarketing Agent(s) shall
purchase the Treasury Portfolio at the Treasury Portfolio Purchase Price, and deduct such
price from the proceeds of the Optional Remarketing. The Remarketing Agent(s) shall then
remit any remaining portion of such proceeds for the benefit of the Holders whose Notes
were remarketed.

(ix) If, in spite of its reasonable efforts, the Remarketing Agent(s) cannot
remarket the Notes as set forth above during the Optional Remarketing Period at a price
not less than the applicable Remarketing Price or a condition precedent set forth in the
Remarketing Agreement is not fulfilled, the Optional Remarketing will be deemed to have
failed (a “Failed Optional Remarketing”). Promptly after a Failed Optional Remarketing,
the Custodial Agent will return Separate Notes to the appropriate Holders.

(x) If the Company elects to remarket the Notes during the Optional Remarketing
Period and a Successful Optional Remarketing has not occurred on or prior to the last day
of the Optional Remarketing Period, the Company shall cause a notice of the Failed
Optional Remarketing to be published before 9:00 a.m., New York City time, on the Business
Day immediately following the last date of the Optional Remarketing Period. This notice
shall be validly published by making a timely release to any appropriate news agency,
including Bloomberg Business News and the Dow Jones News Service.

(b) Final Remarketing. (i) Unless a Termination Event or a Successful Optional Remarketing has
occurred, in order to dispose of the Notes underlying Pledged Applicable Ownership Interests in
Notes of any Holders of Corporate Units who have not notified the Purchase Contract Agent of their
intention to effect a Cash Settlement as provided in Section 5.03(a)(i) below, or who have so
notified the Purchase Contract Agent but failed to make such payment as required by Section
5.03(a)(ii) below, the Company shall engage the Remarketing Agent(s), pursuant to the terms of the
Remarketing Agreement, to remarket such Notes, along with any Separate Notes, the holders of which
have elected to participate in a Final Remarketing pursuant to Section 5.02(e) below, into two
tranches over a period of one or more days selected by the Company that fall during the Final
Remarketing Period.

(ii) The Company shall request that the Depositary notify the Depositary Participants
holding Corporate Units, Treasury Units and
Separate Notes of the Final Remarketing no later than the third Business Day prior to
the first day of the Final Remarketing Period.

 

53

 

(iii) The Purchase Contract Agent, based on the notices specified pursuant to Section
5.03(a)(iv), shall notify the Remarketing Agent(s) in writing, promptly after 5:00 p.m.
(New York City time) on the Business Day immediately preceding the first day of the Final
Remarketing Period, of the aggregate principal amount of Notes underlying the Pledged
Applicable Ownership Interests in Notes that are to be remarketed, and the Custodial Agent
shall notify in writing the Remarketing Agent(s) of the aggregate principal amount of
Separate Notes (if any) to be remarketed pursuant to Section 5.02(e) below.

(iv) The Final Remarketing Date shall be the same for both tranches of Notes and the
settlements of both tranches shall be conditioned on each other.

(v) On the Business Day following the Final Remarketing Date, the Company shall
notify Holders of Separate Notes who decided not to participate in the Final Remarketing
how the Company allocated the Notes of such Holders between the two tranches.

(vi) (A) If the Remarketing Agent(s) is able to remarket such Notes and the Separate
Notes (if any) for at least the applicable Remarketing Price in any Final Remarketing in
accordance with the Remarketing Agreement (a “Successful Final Remarketing”), the
Collateral Agent shall cause the Securities Intermediary to transfer to the Remarketing
Agent(s) the remarketed Notes underlying the Pledged Applicable Ownership Interests in
Notes upon confirmation of deposit to the Collateral Account of proceeds of such
Successful Final Remarketing attributable to such Notes, and the Custodial Agent shall
transfer the remarketed Separate Notes to the Remarketing Agent(s) upon confirmation of
receipt of proceeds of such Successful Final Remarketing attributable to such Separate
Notes. Settlement shall occur on the Remarketing Settlement Date. Upon deposit in the
Collateral Account of such proceeds, the Collateral Agent shall, on the Purchase Contract
Settlement Date, in consultation with the Purchase Contract Agent, instruct the Securities
Intermediary to remit to the Company a portion of such proceeds equal to the aggregate
principal amount of such Notes to satisfy in full the Obligations of Holders of Corporate
Units to pay the Purchase Price for the shares of Common Stock under the related Purchase
Contracts, and promptly remit the balance of such proceeds to the Purchase Contract Agent
for payment to the Holders of Corporate Units, whereupon the Purchase Contract Agent shall
make such payment on the Purchase Contract Settlement Date pro rata in accordance with
their respective interests. With respect to any Separate Notes remarketed, the Custodial
Agent shall remit such proceeds of the Successful Final
Remarketing received from the Remarketing Agent(s) pro rata to Holders of such
Separate Notes.

 

54

 

(vii) In connection with any Successful Final Remarketing, the Company shall cause all
accrued and unpaid Deferred Interest (including compounded interest thereon) to be paid to
the Holders of the Notes (whether or not such Notes were remarketed in such Successful
Final Remarketing) on the Purchase Contract Settlement Date in Cash.

(viii) If, in spite of its reasonable efforts, the Remarketing Agent(s) cannot
remarket the Notes during the Final Remarketing Period at a price equal to or greater than
the applicable Remarketing Price or a condition precedent set forth in the Remarketing
Agreement is not fulfilled, the remarketing will be deemed to have failed (a “Failed Final
Remarketing”).

Following a Failed Final Remarketing, as of the Purchase Contract Settlement Date,
each Holder of any Pledged Applicable Ownership Interests in Notes, unless such Holder has
(A) provided written notice in substantially the form of Exhibit M hereto of its intention
to settle the related Purchase Contract with separate cash and (B) surrendered the
Certificate evidencing the Corporate Units (if they are in certificated form) or the
related Book-Entry Interests, to the Purchase Contract Agent prior to 5:00 p.m. (New York
City time) on the second Business Day immediately preceding the Purchase Contract
Settlement Date and on or prior to the Business Day immediately preceding the Purchase
Contract Settlement Date delivered the Purchase Price to the Securities Intermediary for
deposit in the Collateral Account in lawful money of the United States by certified or
cashiers check or wire transfer in immediately available funds payable to or upon the
order of the Securities Intermediary (which settlement may only be effected in integral
multiples of 20 Corporate Units), shall be deemed to have exercised such Holder’s Put
Right with respect to the Notes underlying such Pledged Applicable Ownership Interests in
Notes and to have elected to apply a portion of the Proceeds equal to the principal amount
of the Notes against such Holder’s obligation to pay the aggregate Purchase Price for the
 shares of Common Stock to be issued under the related Purchase Contracts in full
satisfaction of such Holders’ Obligations under such Purchase Contracts. Following such
application, each such Holder’s Obligations, including to pay the Purchase Price for the
 shares of Common Stock, will be deemed to be satisfied in full, and the Collateral Agent
shall cause the Securities Intermediary to release the Notes underlying such Pledged
Applicable Interests in Notes from the Collateral Account and shall promptly transfer such
Notes to the Company. Thereafter, the Collateral Agent shall promptly remit the remaining
portion of the Proceeds of the Holder’s exercise of the Put Right in excess of the
aggregate Purchase Price for the shares of Common Stock to be issued under such Purchase
Contracts to
the Purchase Contract Agent for payment to the Holder of the Corporate Units to which such
Applicable Ownership Interests in Notes relate.

 

55

 

Upon (x) receipt by the Collateral Agent of a notice from the Purchase Contract Agent
in substantially the form of Exhibit N hereto promptly after the receipt by the Purchase
Contract Agent of a notice from a Holder of Corporate Units that such Holder has elected,
in accordance with this Section 5.02(b)(viii), to settle the related Purchase Contract
with separate cash and (y) payment by such Holder to the Securities Intermediary of the
Purchase Price in accordance with the first sentence of this Section 5.02(b)(viii), in
lieu of exercise of such Holder’s Put Right, the Securities Intermediary shall give the
Purchase Contract Agent notice of the receipt of such payment in substantially the form of
Exhibit O hereto and shall (X) promptly invest the separate cash received in Permitted
Investments consistent with the instructions of the Company with respect to Cash
Settlement, (Y) promptly release from the Pledge the Notes underlying the Applicable
Ownership Interest in Notes related to the Corporate Units as to which such Holder has
paid such separate cash and (Z) promptly Transfer all such Notes to the Purchase Contract
Agent for distribution to such Holder, in each case free and clear of the Pledge created
hereby, whereupon the Purchase Contract Agent shall Transfer such Notes in accordance with
written instructions provided by the Holder thereof or, if no such instructions are given
to the Purchase Contract Agent by the Holder, the Purchase Contract Agent shall hold such
Notes, and any interest payment thereon, in the name of the Purchase Contract Agent or its
nominee in trust for the benefit of such Holder until the expiration of the time period
specified in the relevant abandoned property laws of the state where such Notes and
interest payments thereon, if any, are held. Upon maturity of the Permitted Investments on
the Purchase Contract Settlement Date, the Collateral Agent shall, and is hereby
authorized to, (A) instruct the Securities Intermediary to remit to the Company on the
Purchase Contract Settlement Date such portion of the proceeds of such Permitted
Investments as is equal to the aggregate Purchase Price under all Purchase Contracts in
respect of which separate cash has been paid as provided in this Section 5.02(b)(viii) to
the Company on the Purchase Contract Settlement Date, and (B) release any amounts in
excess of such amount earned from such Permitted Investments to the Purchase Contract
Agent for distribution to the Holders who have paid such separate cash pro rata in
proportion to the amount paid by such Holders under this Section 5.02(b)(viii).

For the avoidance of doubt, nothing in this Section 5.02(b)(viii) shall prevent
holders of Separate Notes from exercising their Put Right after a Failed Final
Remarketing.

 

56

 

(ix) The Company has the right to postpone the Final Remarketing in the Company’s
absolute discretion on any day prior to the last five Business Days of the Final
Remarketing Period.

(x) If a Successful Remarketing has not occurred on or prior to the last day of the
Final Remarketing Period, the Company shall cause a notice of the Failed Remarketing to be
published before 9:00 a.m., New York City time, on the Business Day immediately following
the last date of the Final Remarketing Period. This notice shall be validly published by
making a timely release to any appropriate news agency, including Bloomberg Business News
and the Dow Jones News Service.

(c) The Notes to be remarketed in an Optional Remarketing or a Final Remarketing shall be
divided into two tranches, such that neither tranche will have an aggregate principal amount of
less than the lesser of $250 million and 50% of the aggregate principal amount of the Notes to be
remarketed. One tranche shall mature on or about the third anniversary of the Remarketing
Settlement Date and the other shall mature on or about the fifth anniversary of the Remarketing
Settlement Date. The interest deferral provisions of the Notes shall not apply to the Notes
remarketed in a Remarketing. The Company shall allocate the Notes whose holders elect not to
participate in any Remarketing, without any requirement for the consent of such holders, into these
two tranches, such that neither tranche immediately after the related Remarketing Settlement Date
will have an aggregate principal amount of less than the lesser of $250 million and 50% of the
aggregate principal amount of the Notes then outstanding.

(d) In connection with any Remarketing, the Notes Issuer may elect, by irrevocable notice to
the Depositary at any time at least fifteen (15) days prior to the date on which the Company
proposes to remarket the Notes: (1) to extend the earliest Redemption Date on which the Company may
call the Notes of a tranche for redemption from May 1, 2016 to a later date or to eliminate the
redemption provisions of the Notes of such tranche altogether; and/or (2) to calculate interest on
the Notes of a tranche on a fixed or floating rate basis. These modifications shall become
effective if the Remarketing is successful, without the consent of the Holders, upon the earlier of
the Optional Remarketing Settlement Date and the Purchase Contract Settlement Date. If a
Successful Remarketing occurs, the Company will request the Depositary to notify the Depositary
Participants holding Notes of the Reset Rate, interest payment dates, maturity date and optional
redemption terms established, if any, for each tranche of Notes during the Remarketing on the
Business Day following the date of the Successful Remarketing.

(e) At any time prior to a Remarketing, other than during a Blackout Period, Holders of
Separate Notes may elect to have their Separate Notes remarketed in such Remarketing in the same
manner as the Notes by delivering their Separate Notes along with a notice of this election,
substantially in the form of Exhibit K attached hereto, to the Custodial Agent. After such time,
such
election shall become an irrevocable election to have such Separate Notes remarketed in all
Remarketings to occur in the Applicable

 

57

 

Remarketing Period. The Custodial Agent shall hold the
Separate Notes in an account separate from the Collateral Account in which the Notes shall be held.
Holders electing to have their Notes remarketed shall also have the right to withdraw the election
by written notice to the Collateral Agent, substantially in the form of Exhibit L hereto, at any
time prior to 5:00 p.m., New York City time, on the Business Day immediately preceding the first
day of the Applicable Remarketing Period. In the event of a Successful Remarketing during the
Optional Remarketing Period, each Holder of Separate Notes that elects to have its Notes remarketed
shall receive for each $1,000 principal amount of Notes, the Remarketing Price Per Note. In the
event of a Successful Remarketing during the Final Remarketing Period, each Holder of Separate
Notes that elects to have its Notes remarketed shall receive an amount, for each $1,000 principal
amount of Notes, equal to $1,000 in cash. Any accrued and unpaid interest on such Notes, including
any accrued and unpaid Deferred Interest (including compounded interest thereon), shall be paid in
cash by the Company on the Purchase Contract Settlement Date.

(f) For the avoidance of doubt, the right of each holder of the Notes underlying the aggregate
Applicable Ownership Interests in Notes that are components of Corporate Units and the Separate
Notes, the holders of which have elected to participate in any Remarketing, to have such Notes
remarketed and sold on any Remarketing Date shall be subject to the conditions that (i) (1) the
Remarketing Agent(s) conducts an Optional Remarketing, or (2) in the case of a Final Remarketing,
that no Successful Optional Remarketing has occurred, each pursuant to the terms of this Agreement,
(ii) a Termination Event has not occurred prior to such Remarketing Date, (iii) the Remarketing
Agent(s) is able to find a purchaser or purchasers for such Notes at the applicable Remarketing
Price based on the Reset Rate, and (iv) such purchaser or purchasers deliver the purchase price
therefor to the Remarketing Agent(s) as and when required.

(g) The Company agrees to use its commercially reasonable efforts to ensure that, if required
by applicable law, a registration statement, including a prospectus, under the Securities Act with
regard to the full amount of the Notes to be remarketed in each Remarketing in each case shall be
effective with the Securities and Exchange Commission in a form that may be used by the Remarketing
Agent(s) in connection with such Remarketing (unless such registration statement is not required
under the applicable laws and regulations that are in effect at that time or unless the Company
conducts any Remarketing in accordance with an exemption under the securities laws).

(h) The Company will separately pay the Remarketing Fee to the Remarketing Agent(s) for its
service in connection with any Successful Remarketing. Holders whose Notes are remarketed will not
be responsible for the payment of any Remarketing Fee.

 

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Section 5.03. Cash Settlement; Payment of Purchase Price. (a) (i) Unless (1) a Termination
Event has occurred, (2) a Holder effects an Early Settlement or a Fundamental Change Early
Settlement of the underlying Purchase Contract or (3) a Successful Optional Remarketing has
occurred, each Holder of Corporate Units shall have the right to satisfy such Holder’s Obligations
on the Purchase Contract Settlement Date in cash (a “Cash Settlement”). Each Holder of Corporate
Units who intends to pay in cash to satisfy such Holder’s Obligations under the Purchase Contract
on the Purchase Contract Settlement Date must notify the Purchase Contract Agent by presenting and
surrendering at the offices of the Purchase Contract Agent (1) the Certificate evidencing the
Corporate Units (if they are in certificated form) or the related Book-Entry Interests, and (2) the
form of “Notice to Settle with Cash” substantially in the form of Exhibit E hereto completed and
executed as indicated prior to 5:00 p.m. (New York City time) on the second Business Day
immediately preceding the first day of the Final Remarketing Period or, in case of a Failed Final
Remarketing, the form of “Notice to Settle with Cash After Failed Final Remarketing” substantially
in the form of Exhibit M on the second Business Day immediately preceding the Purchase Contract
Settlement Date. Corporate Units Holders may only effect such a Cash Settlement pursuant to this
Section 5.03(a) in integral multiples of 20 Corporate Units.

(ii) A Holder of a Corporate Unit who has so notified the Purchase Contract Agent of
his intention to effect a Cash Settlement in accordance with Section 5.03(a)(i) above
shall pay the Purchase Price to the Securities Intermediary for deposit in the Collateral
Account prior to 5:00 p.m. (New York City time) on the first Business Day immediately
preceding the first day of the Final Remarketing Period or, in the case of a Failed
Remarketing, on the first Business Day immediately preceding the Purchase Contract
Settlement Date, in lawful money of the United States by certified or cashiers check or
wire transfer in immediately available funds payable to or upon the order of the
Securities Intermediary.

(iii) If a Holder of a Corporate Unit fails to notify the Purchase Contract Agent of
its intention to make a Cash Settlement in accordance with Section 5.03(a)(i), or does
notify the Purchase Contract Agent as provided in Section 5.03(a)(i) of its intention to
pay the Purchase Price in cash but fails to make such payment as required by Section
5.03(a)(ii), such Holder shall be deemed to have consented to the disposition of the Notes
underlying the Pledged Applicable Ownership Interests in Notes pursuant to any Remarketing
occurring in the Final Remarketing Period as described in Section 5.02(b) above.

(iv) Promptly after 5:00 p.m. (New York City time) on the Business Day preceding the
first day of the Final Remarketing Period, the Purchase Contract Agent, based on notices
received by the Purchase Contract Agent pursuant to Section 5.03(a)(i) hereof and notice
from the Securities Intermediary regarding cash received by it prior to such time,
shall notify the Collateral Agent of the aggregate number of Notes to be remarketed
in any Remarketing occurring in the Final Remarketing Period in a notice substantially in
the form of Exhibit J hereto.

 

59

 

(v) Upon (1) receipt by the Collateral Agent of a notice from the Purchase Contract
Agent after the receipt by the Purchase Contract Agent of a notice from a Holder of
Corporate Units that such Holder has elected, in accordance with Section 5.03(a)(i), to
effect a Cash Settlement and (2) the payment by such Holder of the Purchase Price in
accordance with Section 5.03(a)(ii) above, then the Collateral Agent shall:

(A) instruct the Securities Intermediary promptly to invest any such Cash
in Permitted Investments consistent with the instructions of the Company as
provided for below in this Section 5.03(a)(v);

(B) release from the Pledge the Notes underlying the Applicable Ownership
Interest in Notes related to the Corporate Units as to which such Holder has
effected a Cash Settlement; and

(C) instruct the Securities Intermediary to Transfer all such Notes to the
Purchase Contract Agent for distribution to such Holder on the Purchase Contract
Settlement Date, in each case free and clear of the Pledge created hereby,
whereupon the Purchase Contract Agent shall Transfer such Notes in accordance
with written instructions provided by the Holder thereof or, if no such
instructions are given to the Purchase Contract Agent by the Holder, the
Purchase Contract Agent shall hold such Notes, and any interest payment thereon,
in the name of the Purchase Contract Agent or its nominee in trust for the
benefit of such Holder until the expiration of the time period specified in the
relevant abandoned property laws of the state where such Notes and interest
payments thereon, if any, are held.

The Company shall instruct the Collateral Agent in writing as to the type of Permitted Investments
in which any such Cash shall be invested; provided, however, that if the Company fails to deliver
such written instructions by 10:30 a.m. (New York City time) on the day such Cash is received by
the Collateral Agent or to be reinvested by the Securities Intermediary, the Collateral Agent shall
instruct the Securities Intermediary to invest such Cash in the Permitted Investments of the type
described in clause (6) of the definition of Permitted Investments which have been designated by
the Company in writing from time to time in a standing instruction to the Collateral Agent which
shall be effective until revoked or superseded. In no event shall the Collateral Agent or
Securities Intermediary be liable for the selection of Permitted Investments or for investment
losses incurred thereon. The Collateral Agent and Securities Intermediary shall
have no liability in respect of losses incurred as a result of the failure of the Company to
provide timely written investment direction.

 

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Upon maturity of the Permitted Investments on the Purchase Contract Settlement Date, the
Collateral Agent shall, and is hereby authorized to, (A) instruct the Securities Intermediary to
remit to the Company on the Purchase Contract Settlement Date such portion of the proceeds of such
Permitted Investments as is equal to the aggregate Purchase Price under all Purchase Contracts in
respect of which Cash Settlement has been affected as provided in this Section 5.03 to the Company
on the Purchase Contract Settlement Date, and (B) release any amounts in excess of such amount
earned from such Permitted Investments to the Purchase Contract Agent for distribution to the
Holders who have effected Cash Settlement, pro rata in proportion to the amount paid by such
Holders under Section 5.03(a)(ii) above, as adjusted to reflect the period of time that each such
Holder’s cash was invested in such Permitted Investments.

(b) In the case of a Treasury Unit or a Corporate Unit (if Applicable Ownership Interests in
the Treasury Portfolio have replaced the Applicable Ownership Interests in Notes as a component of
such Corporate Unit), if the Pledged Treasury Securities or the appropriate Pledged Applicable
Ownership Interests in the Treasury Portfolio held by the Securities Intermediary mature during the
period from, and including, the fifth Business Day immediately preceding the Purchase Contract
Settlement Date to, and including, the Business Day immediately preceding the Purchase Contract
Settlement Date, the principal amount of the Treasury Securities or the appropriate Pledged
Applicable Ownership Interests in the Treasury Portfolio received by the Securities Intermediary
shall be invested promptly in Permitted Investments of the type described in clause (6) of the
definition of Permitted Investments, which have been designated by the Company in writing from time
to time in a standing instruction to the Securities Intermediary which shall be effective until
revoked or superseded. On the Purchase Contract Settlement Date, an amount equal to the Purchase
Price for all related Purchase Contracts shall be remitted to the Company as payment of such
Holder’s Obligations under such Purchase Contracts without receiving any instructions from the
Holder. In the event the sum of the Proceeds from either the related Pledged Treasury Securities
or the related Pledged Applicable Ownership Interests in the Treasury Portfolio and the Proceeds
from such Permitted Investments is in excess of the aggregate Purchase Price, the Collateral Agent
shall cause the Securities Intermediary to distribute such excess, when received by the Securities
Intermediary, to the Purchase Contract Agent for the benefit of the Holder of the related Treasury
Units or Corporate Units, as applicable.

(c) The obligations of the Holders to pay the Purchase Price are non-recourse obligations and,
except to the extent satisfied by Early Settlement, Fundamental Change Early Settlement or Cash
Settlement or terminated upon a Termination Event, are payable solely out of the proceeds of any
Collateral pledged to secure the obligations of the Holders, and in no event will Holders be
liable for any deficiency between the proceeds of the disposition of Collateral and the
Purchase Price.

 

61

 

Section 5.04. Issuance of Shares of Common Stock. Unless a Termination Event, an Early
Settlement or a Fundamental Change Early Settlement shall have occurred, subject to Section
5.05(b), on the Purchase Contract Settlement Date upon receipt of the aggregate Purchase Price
payable on all Outstanding Units in accordance with Section 5.03 above, the Company shall issue and
deposit with the Purchase Contract Agent, for the benefit of the Holders of the Outstanding Units,
one or more certificates representing newly issued shares of Common Stock registered in the name of
the Purchase Contract Agent (or its nominee) as custodian for the Holders (such certificates for
shares of Common Stock, together with any dividends or distributions for which a record date and
payment date for such dividend or distribution has occurred after the Purchase Contract Settlement
Date, being hereinafter referred to as the “Purchase Contract Settlement Fund”) to which the
Holders are entitled hereunder.

Subject to the foregoing, upon surrender of a Certificate to the Purchase Contract Agent on or
after the Purchase Contract Settlement Date, Early Settlement Date or Fundamental Change Early
Settlement Date, as the case may be, together with settlement instructions thereon duly completed
and executed, the Holder of such Certificate shall be entitled to receive forthwith in exchange
therefor a certificate representing that number of newly issued whole shares of Common Stock which
such Holder is entitled to receive pursuant to the provisions of this Article 5 (after taking into
account all Units then held by such Holder), together with cash in lieu of fractional shares as
provided in Section 5.09 and any dividends or distributions with respect to such shares
constituting part of the Purchase Contract Settlement Fund, but without any interest thereon, and
the Certificate so surrendered shall forthwith be cancelled. Such shares shall be registered in
the name of the Holder or the Holder’s designee as specified in the settlement instructions
provided by the Holder to the Purchase Contract Agent. If any shares of Common Stock issued in
respect of a Purchase Contract are to be registered in the name of a Person other than the Person
in whose name the Certificate evidencing such Purchase Contract is registered (but excluding any
Depositary or nominee thereof), no such registration shall be made unless and until the Person
requesting such registration has paid any transfer and other taxes (including any applicable stamp
taxes) required by reason of such registration in a name other than that of the registered Holder
of the Certificate evidencing such Purchase Contract or has established to the satisfaction of the
Company that such tax either has been paid or is not payable.

Section 5.05. Adjustment of each Fixed Settlement Rate. (a) Each Fixed Settlement Rate shall
be adjusted (without duplication) if certain events occur:

(i) If the Company pays or makes a dividend or other distribution on the Common Stock
in shares of Common Stock, each Fixed Settlement Rate in effect at the opening of business
on the day
following the date fixed for the determination of stockholders entitled to receive
such dividend or other distribution shall be increased by dividing each Fixed Settlement
Rate by a fraction,

 

62

 

(A) the numerator of which shall be the number of shares of the Common
Stock outstanding at the close of business on the date fixed for such
determination; and

(B) the denominator of which shall be the sum of such number of shares and
the total number of shares constituting such dividend or other distribution.

Any adjustment made under this clause (i) shall become effective immediately after
the opening of business on the day following the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution. If any dividend or
distribution of the type described in this clause (i) is declared but not so paid or made,
each Fixed Settlement Rate shall be immediately readjusted, effective as of the earlier of
(a) the date the Board of Directors determines not to pay or make such dividend or
distribution and (b) the date the dividend or distribution was to be paid, to the Fixed
Settlement Rate that would then be in effect if such dividend or distribution had not been
declared.

(ii) If the Company issues to all holders of the Common Stock rights, options or
warrants, entitling them to subscribe for or purchase shares of the Common Stock for a
period expiring within 45 days from the date of issuance of such rights, options or
warrants at a price per share of Common Stock less than the Current Market Price on the
date fixed for the determination of stockholders entitled to receive such rights, options
or warrants (other than pursuant to a dividend reinvestment, share purchase or similar
plan), each Fixed Settlement Rate in effect at the opening of business on the day
following the date fixed for such determination shall be increased by dividing each Fixed
Settlement Rate by a fraction,

(A) the numerator of which shall be the number of shares of the Common
Stock outstanding at the close of business on the date fixed for such
determination plus the number of shares of Common Stock which the aggregate
consideration expected to be received by the Company upon the exercise of such
rights, options or warrants would purchase at such Current Market Price; and

(B) the denominator of which shall be the number of shares of the Common
Stock outstanding at the close of business on the date fixed for such
determination plus the number of shares of Common Stock so offered for
subscription or purchase, either directly or indirectly.

 

63

 

Any increase in the Fixed Settlement Rates made pursuant to this clause (ii) shall
become effective immediately after the opening of business on the day following the date
fixed for the determination of stockholders entitled to receive such rights, options or
warrants. To the extent such rights, options or warrants are not exercised prior to their
expiration or termination, each Fixed Settlement Rate shall be decreased, effective as of
the date of such expiration or termination, to the Fixed Settlement Rate that would then
be in effect had the increase with respect to the issuance of such rights, options or
warrants been made on the basis of delivery of only the number of shares of Common Stock
actually delivered. If such rights, options or warrants are not so issued, each Fixed
Settlement Rate shall be decreased, effective as of the earlier of (a) the date the Board
of Directors determines not to issue such rights, options or warrants and (b) the date
such rights, options or warrants were to have been issued, to the Fixed Conversion Rate
that would then be in effect if such date fixed for such determination had not occurred.

For purposes of this clause (ii), in determining whether any rights, options or
warrants entitle the holders thereof to subscribe for or purchase shares of the Common
Stock at less than the Current Market Price per share of Common Stock on the date fixed
for the determination of stockholders entitled to receive such rights, options or
warrants, and in determining the aggregate price payable to exercise such rights, options
or warrants, there shall be taken into account any consideration the Company receives for
such rights, options or warrants and any amount payable on exercise thereof, with the
value of such consideration, if other than cash, to be determined in good faith by the
Board of Directors.

(iii) If outstanding shares of the Common Stock shall be subdivided, split or
reclassified into a greater number of shares of Common Stock, each Fixed Settlement Rate
in effect at the opening of business on the day following the day upon which such
subdivision, split or reclassification becomes effective shall be proportionately
increased, and, conversely, in case outstanding shares of the Common Stock shall each be
combined or reclassified into a smaller number of shares of Common Stock, each Fixed
Settlement Rate in effect at the opening of business on the day following the day upon
which such combination or reclassification becomes effective shall be proportionately
reduced.

(iv) If the Company, by dividend or otherwise, distributes to all holders of the
Common Stock evidences of the Company’s indebtedness, assets or securities (but excluding
any rights, options or warrants referred to in clause (ii) of this Section 5.05(a)), any
dividend or distribution paid exclusively in cash referred to in clause (v) below of this
Section 5.05(a) and any dividend paid in shares of capital stock of any class or series,
or similar equity interests, of or relating to a subsidiary or other business unit in the
case of a Spin-Off referred to below, or dividend or distribution
referred to in clause (i) of this Section 5.05(a)), each Fixed Settlement Rate in
effect immediately prior to the close of business on the date fixed for the determination
of stockholders entitled to receive such dividend or distribution shall be increased by
dividing each Fixed Settlement Rate by a fraction,

 

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(A) the numerator of which shall be the Current Market Price on the date
fixed for such determination less the then fair market value (as determined in
good faith by the Board of Directors, whose good faith determination will be
conclusive) of the portion of the assets or evidences of indebtedness so
distributed applicable to one share of the Common Stock (the “Fair Market
Value”); and

(B) the denominator of which shall be such Current Market Price.

If the Board of Directors determines the Fair Market Value of any dividend or other
distribution for purposes of this clause (iv) by referring to the actual or when-issued
trading market for any securities, it shall in doing so consider the prices in such market
over the same period in computing the Current Market Price per share of the Common Stock
on the date fixed for the determination of stockholders entitled to receive such dividend
or distribution. Notwithstanding the foregoing, if the Fair Market Value is equal to or
greater than the Current Market Price, in lieu of the foregoing increase, each Holder of
Units shall receive at the same time and upon the same terms as holders of shares of
Common Stock, the Company’s indebtedness, assets or securities that such Holder would have
received if such Holder owned a number of shares of Common Stock equal to the Maximum
Settlement Rate in effect immediately prior to the close of business on the date fixed for
the determination of stockholders entitled to receive such dividend or other distribution.

Any increase made under the portion of this clause (iv) shall become effective
immediately after the close of business on the date fixed for the determination of
stockholders entitled to receive such dividend or distribution. If such dividend or
distribution is not so paid or made, each Fixed Settlement Rate shall be decreased,
effective as of the earlier of (a) the date the Board of Directors determines not to pay
the dividend or other distribution and (b) the date such dividend or distribution was to
have been paid, to the Fixed Settlement Rate that would then be in effect if the dividend
or other distribution had not been declared.

In the case of the payment of a dividend or other distribution on the Common Stock of
 shares of capital stock of any class or series, or similar equity interests, of or
relating to a subsidiary or other business unit of the Company (a “Spin-Off”), each Fixed
Settlement Rate in effect
immediately before the close of business on the date fixed for determination of
stockholders entitled to receive such dividend or distribution will be increased by
dividing each Fixed Settlement Rate by a fraction,

 

65

 

(A) the numerator of which is the Current Market Price; and

(B) the denominator of which is such Current Market Price plus the Fair
Market Value (determined as described below) of those shares of capital stock or
similar equity interests so distributed applicable to one share of Common Stock.

The adjustment to each Fixed Settlement Rate under the preceding paragraph will occur
on (A) the 10th Trading Day from and including the effective date of the Spin-Off; or (B)
if the Spin-Off is effected simultaneously with an Initial Public Offering of the
securities being distributed in the Spin-Off, the issue date of the securities being
offered in such Initial Public Offering. For purposes of this section, “Initial Public
Offering” means the first time securities of the same class or type as the securities
being distributed in the Spin-Off are offered to the public for cash.

In the event of a Spin-Off that is not effected simultaneously with an Initial Public
Offering of the securities being distributed in the Spin-Off, the Fair Market Value of the
securities to be distributed to holders of Common Stock means the average of the Closing
Prices of those securities over the first 10 Trading Days following the effective date of
the Spin-Off. For purposes of such a Spin-Off, the Current Market Price of the Common
Stock means the average of the Closing Prices of the Common Stock over the first 10
Trading Days following the effective date of the Spin-Off.

If, however, an Initial Public Offering of the securities being distributed in the
Spin-Off is to be effected simultaneously with the Spin-Off, the Fair Market Value of the
securities being distributed in the Spin-Off means the Initial Public Offering price,
while the Current Market Price of the Common Stock means the Closing Prices of the Common
Stock on the Trading Day on which the Initial Public Offering price of the securities
being distributed in the Spin-Off is determined.

The Company shall delay the settlement of any Unit if the Purchase Contract
Settlement Date occurs after the date fixed for the determination of stockholders entitled
to receive such dividend or distribution and prior to the end of such 10 consecutive
Trading Day period. In such event, the Company shall deliver the shares of Common Stock
issuable upon the settlement of each Purchase Contract (based on the adjusted Fixed
Settlement Rates) on the first Business Day
immediately following the last Trading Day of such 10 consecutive Trading Day period.

 

66

 

(v) If the Company, by dividend or otherwise, makes distributions to all holders of
the Common Stock exclusively in cash during any quarterly period (excluding any cash that
is distributed in a Reorganization Event or as part of a distribution referred to in
clause (iv) of this Section 5.05(a)) in an amount that exceeds $0.35 per share per quarter
in the case of a regular quarterly dividend (such per share amount being referred to as
the “Reference Dividend”), immediately after the close of business on the date fixed for
determination of the stockholders entitled to receive such distribution, each Fixed
Settlement Rate shall be increased by dividing each Fixed Settlement Rate by a fraction,

(A) the numerator of which shall be equal to the Current Market Price on
the date fixed for such determination less the amount, if any, by which the per
share amount of the distribution exceeds the Reference Dividend; and

(B) the denominator of which shall be equal to such Current Market Price.

Such increase shall become effective after the close of business on the date fixed
for determination of the stockholders entitled to receive such distribution.
Notwithstanding the foregoing, if the amount of cash per share of the Common Stock that
the Company distributes to holders of the Common Stock is equal to or greater than the
Current Market Price on the date fixed for such determination of the stockholders entitled
to receive such distribution, in lieu of the foregoing increase, each Holder of Units
shall receive at the same time and upon the same terms as holders of shares of the Common
Stock, the amount of cash that such Holder would have received if such Holder owned a
number of shares of the Common Stock equal to the Maximum Settlement Rate in effect
immediately prior to the close of business on the date fixed for determination of the
stockholders entitled to receive such distribution. If such distribution is not so paid,
each Fixed Settlement Rate shall be decreased, effective as of the earlier of (a) the date
the Board of Directors determines not to pay such dividend and (b) the date such dividend
was to have been paid, to the Fixed Settlement Rate that would then be in effect if such
distribution had not been declared.

The reference dividend will be subject to an inversely proportional adjustment
whenever each Fixed Settlement Rate is adjusted, other than pursuant to this clause (v).
For the avoidance of doubt, the Reference Dividend shall be zero in the case of a cash
dividend amount that is not a regular quarterly dividend.

 

67

 

(vi) In the case that a tender offer or exchange offer made by the Company or any
subsidiary for all or any portion of shares of the Common Stock shall expire and such
tender or exchange offer (as amended through the expiration thereof) shall require the
payment to stockholders (based on the acceptance (up to any maximum specified in the terms
of the tender offer or exchange offer) of Purchased Shares) of an aggregate consideration
having a Fair Market Value per share of the Common Stock that exceeds the Closing Price of
the Common Stock on the Trading Day next succeeding the last date on which tenders or
exchanges may be made pursuant to such tender offer or exchange offer, then, immediately
prior to the opening of business on the day after the date of the last time (the
“Expiration Time”) tenders or exchanges could have been made pursuant to such tender offer
or exchange offer (as amended through the expiration thereof), each Fixed Settlement Rate
shall be increased by dividing each Fixed Settlement Rate immediately prior to the close
of business on the date of the Expiration Time by a fraction,

(A) the numerator of which shall be equal to (x) the product of (i) the
Current Market Price on the date of the Expiration Time and (ii) the number of
 shares of Common Stock outstanding (including any tendered or exchanged shares)
on the date of the Expiration Time less (y) the amount of cash plus the Fair
Market Value of the aggregate consideration payable to stockholders pursuant to
the tender offer or exchange offer (assuming the acceptance, up to any maximum
specified in the terms of the tender offer or exchange offer, of Purchased
Shares); and

(B) the denominator of which shall be equal to the product of (x) the
Current Market Price on the date of the Expiration Time and (y) the result of
(i) the number of shares of the Common Stock outstanding (including any tendered
or exchanged shares) on the date of the Expiration Time less (ii) the number of
all shares validly tendered, not withdrawn and accepted for payment on the date
of the Expiration Time (such validly tendered or exchanged shares, up to any
such maximum, the “Purchased Shares”).

In the event the Company is, or one of the Company’s subsidiaries is, obligated to
purchase shares of Common Stock pursuant to any such tender or exchange offer, but the
Company is, or such subsidiary is permanently prevented by applicable law from effecting
any such purchases. or all such purchases are rescinded, then each Fixed Settlement Rate
shall be readjusted to the Fixed Settlement Rate that would then be in effect if such
tender or exchange offer had not been made. If an adjustment to each Fixed Settlement Rate
is required pursuant to this clause (vi) during any settlement, delivery of the related
settlement
consideration will be delayed to the extent necessary in order to complete the
calculations provided for in this clause (vi).

 

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(vii) (1) If any adjustments are made to each Fixed Settlement Rate pursuant to this
Section 5.05(a), an inversely proportional adjustment shall also be made to the Reference
Price and the Threshold Appreciation Price solely to determine which of the clauses of the
definition of Settlement Rate in Section 5.01(a) will be applicable to determine the
Settlement Rate with respect to the Purchase Contract Settlement Date or any Fundamental
Change Early Settlement Date. In addition, if any adjustment to the Fixed Settlement
Rates becomes effective, or any ex date or record date for any issuance, dividend or
distribution (relating to a required Fixed Settlement Rate adjustment) occurs, during the
period beginning on, and including, (i) the open of business on a first Trading Day of the
Observation Period or (ii) in the case of Early Settlement, the relevant Early Settlement
Date and, in each case, ending on, and including, the date on which the Company delivers
 shares of Common Stock under the related Purchase Contract, the Company will make
appropriate adjustments to the Fixed Settlement Rates, the Applicable Market Value and/or
the number of shares of Common Stock deliverable upon settlement of the Purchase Contract,
in each case, consistent with the anti-dilution adjustments set forth above in paragraphs
(a)(i) to (a)(vi) of this Section 5.05.

(2) No adjustment to the Fixed Settlement Rates need be made if Holders may
participate in the transaction that would otherwise give rise to an adjustment,
so long as the distributed assets or securities the holders would receive upon
settlement of the Equity Units, if convertible, exchangeable, or exercisable, are
convertible, exchangeable or exercisable, as applicable, without any loss of
rights or privileges for a period of at least 45 days following settlement of the
Equity Units.

(viii) All adjustments to the Fixed Settlement Rate shall be calculated to the
nearest 1/10,000th of a share of Common Stock (or if there is not a nearest 1/10,000th of
a share to the next lower 1/10,000th of a share). No adjustment to the Fixed Settlement
Rate shall be required unless such adjustment would require an increase or decrease of at
least one percent in one or both Fixed Settlement Rates; provided, that if any adjustment
is not required to be made because it would not change one or both of the Fixed Settlement
Rates by at least one percent, the adjustment shall be carried forward and taken into
account in any subsequent adjustment; provided that effect shall be given to all
adjustments under this Section 5.05(a) no later than the close of business on the Business
Day immediately preceding the first Trading Day of the Observation Period (or, if earlier,
the close of business on the Business Day immediately
preceding the date on which the amount of Make-Whole Shares is determined).

 

69

 

(ix) The Company may increase the Fixed Settlement Rates, in addition to those
required by this Section 5.05(a), if the Board of Directors deems it advisable in order to
avoid or diminish any income tax to any holders of Common Stock resulting from any
dividend or distribution of shares (or rights to acquire shares) or from any event treated
as such for income tax purposes or for any other reasons. The Company may only make such a
discretionary adjustment if the Company makes the same proportionate adjustment to each
Fixed Settlement Rate.

(x) To the extent the Company has a shareholder rights plan involving the issuance of
preference share purchase rights or other similar rights (the “Rights”) to all holders of
the Common Stock in effect upon settlement of a Purchase Contract, a Holder shall be
entitled to receive upon settlement of any Purchase Contract, in addition to the shares of
Common Stock issuable upon settlement of such Purchase Contract, the related Rights for
the Common Stock under the shareholder rights plan, unless prior to such settlement, such
Rights under the shareholder rights plan have separated from the Common Stock, in which
case each Fixed Settlement Rate shall be adjusted at the time of separation as if the
Company made a distribution to all holders of the Common Stock as provided in Section
5.05(a)(iv), subject to readjustment in the event of the expiration, termination or
redemption of the Rights.

(b) (i) Subject to the provisions of Section 5.05(b)(ii), upon a Reorganization Event, each
Unit shall thereafter, in lieu of a variable number of shares of Common Stock, be settled by
delivery of a variable number of Exchange Property Units. An “Exchange Property Unit” represents
the right to receive the kind and amount of common stock, securities, other property or assets
(including cash or any combination thereof) receivable in such Reorganization Event (without any
interest thereon, and without any right to dividends or distributions thereon that have a record
date that is prior to the applicable Settlement Date) per share of Common Stock by a holder of
Common Stock that is not a Person with which the Company consolidated or into which the Company
merged or which merged into the Company or to which such sale or transfer was made, as the case may
be (any such Person, a “Constituent Person”), or an Affiliate of a Constituent Person to the extent
such Reorganization Event provides for different treatment of Common Stock held by Affiliates of
the Company and non-Affiliates. In the event holders of Common Stock have the opportunity to elect
the form of consideration to be received in such transaction, the Exchange Property Unit that
Holders of the Corporate Units or Treasury Units would have been entitled to receive will be deemed
to be the weighted average of the types and amounts of consideration received by the holders of
Common Stock that affirmatively make an election. The number of Exchange Property Units to be
delivered upon settlement of a Purchase Contract following the effective date of a Reorganization
Event shall equal the Settlement Rate, subject to adjustment as provided in Section 5.05,
determined as if the references to “shares of Common Stock” in Section 5.01(a)(i), (ii) and (iii)
were to “Exchange Property Units.”

 

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In the event of such a Reorganization Event, the Person formed by such consolidation, or
merger or the Person which acquires the assets of the Company shall execute and deliver to the
Purchase Contract Agent an agreement supplemental hereto providing that the Holder of each Unit
that remains Outstanding after the Reorganization Event (if any) shall have the rights provided by
this Section 5.05(b). Such supplemental agreement shall provide for adjustments to the amount of
any securities constituting all or a portion of an Exchange Property Unit which, for events
subsequent to the effective date of such Reorganization Event, shall be as nearly equivalent as may
be practicable to the adjustments provided for in this Section 5.05. The above provisions of this
Section 5.05(b) shall similarly apply to successive Reorganization Events.

(ii) If a Fundamental Change occurs prior to the Purchase Contract Settlement Date,
then following such Fundamental Change a Holder of a Purchase Contract shall have the
right (“Fundamental Change Early Settlement Right”) to accelerate and settle (“Fundamental
Change Early Settlement”) such Purchase Contract, upon the conditions set forth below, on
the Fundamental Change Early Settlement Date at the Settlement Rate determined as if the
Applicable Market Value equaled the Stock Price (as defined below), plus an additional
make-whole amount of shares (the “Make-Whole Shares”); provided that no Fundamental Change
Early Settlement will be permitted pursuant to this Section 5.05(b)(ii) unless, at the
time such Fundamental Change Early Settlement is effected, there is an effective
Registration Statement with respect to any securities to be issued and delivered in
connection with such Fundamental Change Early Settlement, if such a Registration Statement
is required (in the view of counsel, which need not be in the form of a written opinion,
for the Company) under the Securities Act. If such a Registration Statement is so
required, the Company covenants and agrees to use its commercially reasonable efforts to
(x) have in effect a Registration Statement covering the Common Stock and other securities
to be delivered in respect of the Purchase Contracts being settled and (y) provide a
Prospectus in connection therewith, in each case in a form that may be used in connection
with such Fundamental Change Early Settlement. In the event that a Holder seeks to
exercise its Fundamental Change Early Settlement Right and a Registration Statement is
required to be effective in connection with the exercise of such right but no such
Registration Statement is then effective, the Holder’s exercise of such right shall be
void unless and until such a Registration Statement shall be effective, but such Holder
shall receive consideration calculated as described in this Section 5.05(b)(ii) when such
Registration Statement becomes effective.

 

71

 

The Company shall provide written notice to Holders of Units of the completion of a
Fundamental Change within five Business Days of the Effective Date (as hereinafter
defined) of a Fundamental Change, which shall specify, among other things (i) an early
settlement date (the “Fundamental Change Early Settlement Date”), which shall be at least
10 days after the date of the notice but no later than the earlier of 20 days after the
date of such notice and two Business Days prior to the first day of the commencement of
the Optional Remarketing Period, if applicable, or, if the Company does not elect, if
applicable, to conduct an Optional Remarketing or the Optional Remarketing is not
successful, the commencement of the Final Remarketing Period or, if the Final Remarketing
is not successful, the Purchase Contract Settlement Date, by which each Holder’s
Fundamental Change Early Settlement Right must be exercised, (ii) the applicable
Settlement Rate and (iii) the amount (per share of Common Stock) of cash, securities and
other consideration receivable by the Holder, including the amount of Contract Adjustment
Payments and deferred Contract Adjustment Payments (including Compounded Contract
Adjustment Payments thereon) receivable, upon settlement.

Corporate Units Holders (unless Applicable Ownership Interests in the Treasury
Portfolio have replaced Applicable Ownership Interests in Notes as a component of the
Corporate Units) and Treasury Units Holders may only effect Fundamental Change Early
Settlement pursuant to this Section 5.05(b)(ii) in integral multiples of 20 Corporate
Units or Treasury Units, as the case may be. If Applicable Ownership Interests in the
Treasury Portfolio have replaced Applicable Ownership Interests in Notes as a component of
the Corporate Units, Corporate Units Holders may only effect Fundamental Change Early
Settlement pursuant to this Section 5.05(b)(ii) in multiples of 50,000 Corporate Units.
Other than the provisions relating to timing of notice and settlement, which shall be as
set forth above, the provisions of Section 5.01 shall apply with respect to a Fundamental
Change Early Settlement pursuant to this Section 5.05(b)(ii).

In order to exercise the Fundamental Change Early Settlement Right with respect to
any Purchase Contracts, the Holder of the Certificate evidencing Units shall deliver to
the Purchase Contract Agent at the Corporate Trust Office in New York City, no later than
4:00 p.m., New York City time, on the third Business Day immediately preceding the
Fundamental Change Early Settlement Date, such Certificate evidencing its Corporate Units
or Treasury Units if they are held in certificated form, duly endorsed for transfer to the
Company or in blank with the form of Election to Fundamental Change Early Settlement on
the reverse thereof duly completed, and payment of the applicable Purchase Price in
immediately available funds less the amount of accrued and unpaid Contract Adjustment
Payments (including any Deferred Contract
Adjustment Payments and Compounded Contact Adjustment Payments thereon) to, but
excluding, the Fundamental Change Early Settlement Date.

 

72

 

In the event that Units are held by or through DTC or another Depositary, the
exercise of the right to effect Fundamental Change Early Settlement shall occur in
conformity with the standing arrangements between DTC or such Depositary and the Purchase
Contract Agent.

Upon receipt of any such Certificate and payment of such funds, the Purchase Contract
Agent shall pay the Company from such funds the related Purchase Price pursuant to the
terms of the related Purchase Contracts, and notify the Collateral Agent that all the
conditions necessary for a Fundamental Change Early Settlement by a Holder of Units have
been satisfied pursuant to which the Purchase Contract Agent has received from such
Holder, and paid to the Company as confirmed in writing by the Company, the related
Purchase Price.

Upon receipt by the Collateral Agent of the notice from the Purchase Contract Agent
set forth in the preceding paragraph, the Collateral Agent shall release from the Pledge,
(1) the Notes underlying the Pledged Applicable Ownership Interests in Notes or the
Pledged Applicable Ownership Interests in the Treasury Portfolio, in the case of a Holder
of Corporate Units or (2) the Pledged Treasury Securities, in the case of a Holder of
Treasury Units, in each case 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
Fundamental Change Early Settlement, and shall instruct the Securities Intermediary to
Transfer all such Pledged Applicable Ownership Interests in the Treasury Portfolio or
Notes underlying Pledged Applicable Ownership Interests in Notes or Pledged Treasury
Securities, as the case may be, to the Purchase Contract Agent for distribution to such
Holder, in each case free and clear of the Pledge created hereby.

If a Holder exercises the Fundamental Change Early Settlement Right in accordance
with the provisions of this Section 5.05(b)(ii), the Company will deliver (or will cause
the Collateral Agent to deliver) to the Holder on the Fundamental Change Early Settlement
Date for each Purchase Contract with respect to which such Holder has elected Fundamental
Change Early Settlement:

(A) the kind and amount of securities, cash and other property receivable
upon such Fundamental Change by a Holder of the number of shares of Common Stock
issuable on account of each Purchase Contract if the Purchase Contract
Settlement Date had occurred immediately prior to such Fundamental Change (based
on the Fundamental Change Early Settlement Rate in effect at such time),
assuming such Holder of Common Stock is not a
Constituent Person or an Affiliate of a Constituent Person to the extent
such Fundamental Change provides for different treatment of Common Stock held by

 

73

 

Affiliates of the Company and non-Affiliates.  If the Fundamental Change causes
the outstanding shares of Common Stock to be converted into the right to receive
more than a single type of consideration (determined based in part upon any form
of shareholder election) and the Holder exercises the right to effect a
Fundamental Change Early Settlement, the Company will deliver to the Holder on
the Fundamental Change Early Settlement Date consideration in the types and
amounts as is proportional to the types and amounts of consideration received by
the holders of Common Stock that affirmatively make such an election;

(B) to the extent any accrued and unpaid Contract Adjustment Payments
(including any deferred Contract Adjustment Payments and Compounded Contract
Adjustment Payments thereon) with respect to such Purchase Contract to, but
excluding, the Fundamental Change Early Settlement Date exceed the applicable
Purchase Price, cash in the amount of such excess;

(C) the Notes, the Applicable Ownership Interests in the Treasury Portfolio
or Treasury Securities, as the case may be, related to each Unit with respect to
which the Holder is effecting a Fundamental Change Early Settlement, free and
clear of the Pledge created hereby; and

(D) if so required under the Securities Act, a Prospectus as contemplated
by this Section 5.05(b)(ii).

For the avoidance of doubt, if any accrued and unpaid Contract Adjustment Payments (including
any deferred Contract Adjustment Payments and Compounded Contract Adjustment Payments thereon) with
respect to such Purchase Contract to, but excluding, the Fundamental Change Early Settlement Date
has not been deducted from the applicable Purchase Price payable by such Holder pursuant to the
fourth paragraph of this Section 5.05(b)(ii), such accrued and unpaid Contract Adjustment Payments
(including any deferred Contract Adjustment Payments and Compounded Contract Adjustment Payments
thereon) shall be due and payable by the Company on the Fundamental Change Early Settlement Date
for such Purchase Contract.

The Corporate Units or the Treasury Units of the Holders who do not elect Fundamental Change
Early Settlement in accordance with the foregoing will continue to remain outstanding and be
subject to settlement on the Purchase Contract Settlement Date in accordance with the terms hereof.

 

74

 

(iii) The amount of Make-Whole Shares per Purchase Contract applicable to a
Fundamental Change Early Settlement will be determined by reference to the table below,
based on the date on which the Fundamental Change occurs or becomes effective (the
“Effective Date”) and the price (the “Stock Price”) in such Fundamental Change. If
holders of Common Stock receive only cash in a Fundamental Change described in clause (b)
of the definition of Fundamental Change, the Stock Price will be the cash amount paid per
share of the Common Stock. Otherwise, the Stock Price paid per share will be the average
of the Closing Prices of the Common Stock over the 20 Trading Day period ending on the
Trading Day immediately preceding the Effective Date of such Fundamental Change.

The Stock Prices set forth in the second row of the table (i.e., the column headers) shall be
adjusted upon the occurrence of certain events requiring anti-dilution adjustments to the Fixed
Settlement Rates. Each of the Make-Whole Shares amounts in the table will be subject to adjustment
in the same manner as the Fixed Settlement Rates as set forth under Section 5.05(a). The adjusted
Stock Prices will equal the Stock Prices applicable immediately prior to such adjustment,
multiplied by a fraction, the numerator of which is the applicable Fixed Settlement Rate
immediately prior to the adjustment giving rise to the Stock Price adjustment and the denominator
of which is the same Fixed Settlement Rate as so adjusted. The number of shares of Common Stock in
the table below will be adjusted in the same manner as the Fixed Settlement Rate as set forth in
Section 5.05(a).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price on Effective Date	 
	Effective Date	 	$8.00	 	 	$16.00	 	 	$20.00	 	 	$25.30	 	 	$27.50	 	 	$30.99	 	 	$35.00	 	 	$40.00	 	 	$50.00	 	 	$60.00	 	 	$70.00	 	 	$80.00	 	 	$90.00	 	 	$100.00	 
	April 15, 2011
	 	 	0.5101	 	 	 	0.2386	 	 	 	0.1493	 	 	 	0.0000	 	 	 	0.1160	 	 	 	0.2469	 	 	 	0.1863	 	 	 	0.1406	 	 	 	0.1002	 	 	 	0.0816	 	 	 	0.0687	 	 	 	0.0588	 	 	 	0.0510	 	 	 	0.0447	 
	May 1, 2012
	 	 	0.3566	 	 	 	0.1680	 	 	 	0.1013	 	 	 	0.0000	 	 	 	0.0769	 	 	 	0.2040	 	 	 	0.1424	 	 	 	0.1008	 	 	 	0.0704	 	 	 	0.0572	 	 	 	0.0480	 	 	 	0.0410	 	 	 	0.0356	 	 	 	0.0312	 
	May 1, 2013
	 	 	0.1861	 	 	 	0.0894	 	 	 	0.0533	 	 	 	0.0000	 	 	 	0.0324	 	 	 	0.1457	 	 	 	0.0822	 	 	 	0.0515	 	 	 	0.0366	 	 	 	0.0298	 	 	 	0.0250	 	 	 	0.0213	 	 	 	0.0185	 	 	 	0.0163	 
	May 1, 2014
	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

The exact Stock Price and Effective Date applicable to a Fundamental Change may not be set
forth on the table, in which case:

(1) if the Stock Price is between two Stock Price amounts on the table or
the Effective Date is between two dates on the table, the amount of Make-Whole
Shares will be determined by straight line interpolation between the Make-Whole
Share amounts set forth for the higher and lower Stock Price amounts and the two
dates, as applicable, based on a 365-day year;

(2) if the Stock Price is in excess of $100.00 per share (subject to
adjustment as described above), then the Make-Whole Share amount will be zero;
and

 

75

 

(3) if the Stock Price is less than $8.00 per share (subject to adjustment
as described above) (the “Minimum Stock Price”), then the Make-Whole Share amount
will be determined as if the Stock Price equaled the Minimum Stock Price, using
straight line interpolation, as described above, if the Effective Date is between
two dates on the table.

(c) The Fixed Settlement Rate shall not be adjusted:

(1) upon the issuance of any shares of Common Stock pursuant to any present or future
plan providing for the reinvestment of dividends or interest payable on the Company’s
securities and the investment of additional optional amounts in shares of Common Stock
under any plan;

(2) upon the issuance of any shares of Common Stock or options or rights to purchase
those shares pursuant to any present or future employee, director or consultant benefit
plan or program of or assumed by the Company or any of its subsidiaries;

(3) upon the issuance (other than an issuance to all or substantially all of the
holders of the Common Stock) of any shares of Common Stock pursuant to any option,
warrant, right or exercisable, exchangeable or convertible security outstanding as of the
date the Units were first issued;

(4) for a change in the par value or no par value of the Common Stock; or

(5) for accumulated and unpaid dividends, other than to the extent contemplated by
Section 5.05(a) hereof.

(d) Each adjustment to each Fixed Settlement Rate will result in a corresponding adjustment to
the number of shares of Common Stock issuable upon Early Settlement.

(e) All calculations and determinations pursuant to this Section 5.05 shall be made by the
Company or its agent and the Purchase Contract Agent shall have no responsibility with respect to
this Agreement.

Section 5.06. Notice of Adjustments and Certain Other Events. (a) Whenever the Fixed
Settlement Rates are adjusted as herein provided, the Company shall, as soon as practicable
following the occurrence of an event that requires an adjustment pursuant to Section 5.05 (or if
the Company is not aware of such occurrence, as soon as practicable after becoming so aware):

(i) compute each adjusted Fixed Settlement Rate in accordance with Section 5.05 and
prepare and transmit to the Purchase
Contract Agent an Officers’ Certificate setting forth each adjusted Fixed Settlement
Rate, the method of calculation thereof in reasonable detail, and the facts requiring such
adjustment and upon which such adjustment is based; and

 

76

 

(ii) provide a written notice to the Holders of the Units of the occurrence of such
event and a statement in reasonable detail setting forth the method by which the
adjustment to each Fixed Settlement Rate was determined and setting forth each adjusted
Fixed Settlement Rate.

(b) The Purchase Contract Agent shall not at any time be under any duty or responsibility to
any Holder to determine whether any facts exist which may require any adjustment of each Fixed
Settlement Rate, or with respect to the nature or extent or calculation of any such adjustment when
made, or with respect to the method employed in making the same. The Purchase Contract Agent shall
be fully authorized and protected in relying on any Officers’ Certificate delivered pursuant to
Section 5.06(a)(i) and any adjustment contained therein and the Purchase Contract Agent shall not
be deemed to have knowledge of any adjustment unless and until it has received such certificate.
The Purchase Contract Agent shall not be accountable with respect to the validity or value (or the
kind or amount) of any shares of Common Stock, or of any securities or property, which may at the
time be issued or delivered with respect to any Purchase Contract; and the Purchase Contract Agent
makes no representation with respect thereto. The Purchase Contract Agent shall not be responsible
for any failure of the Company to issue, transfer or deliver any shares of Common Stock pursuant to
a Purchase Contract or to comply with any of the duties, responsibilities or covenants of the
Company contained in this Article 5.

Section 5.07. Termination Event; Notice.

(a) The Purchase Contracts and all obligations and rights of the Company and the Holders
thereunder, including the Holders’ obligation and right to purchase and receive shares of Common
Stock and to receive accrued and unpaid Contract Adjustment Payments (including any deferred
Contract Adjustment Payments (including Compounded Contract Adjustment Payments thereon)), shall
immediately and automatically terminate, without the necessity of any notice or action by any
Holder, the Purchase Contract Agent or the Company, if, prior to or on the Purchase Contract
Settlement Date, a Termination Event shall have occurred. In the event of such a termination of the
Purchase Contracts as a result of a Termination Event, Holders of such Purchase Contracts will not
have a claim in bankruptcy under the Purchase Contract with respect to the Company’s issuance of
shares of Common Stock or the right to receive Contract Adjustment Payments.

 

77

 

(b) Upon and after the occurrence of a Termination Event, the Units shall thereafter represent
the right to receive the Notes underlying the Applicable Ownership Interests in Notes, the Treasury
Securities or the Applicable
Ownership Interests in the Treasury Portfolio, as the case may be, forming part of such Units,
in accordance with the provisions of Section 3.15 hereof. Upon the occurrence of a Termination
Event, (i) the Company shall promptly but in no event later than two Business Days thereafter give
written notice to the Purchase Contract Agent, the Collateral Agent and the Holders, at their
addresses as they appear in the Security Register and (ii) the Collateral Agent shall, in
accordance with Section 3.15 hereof, release the Notes underlying the Pledged Applicable Ownership
Interests in Notes or the Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of Applicable Ownership Interest in the Treasury Portfolio) forming a
part of each Corporate Unit or the Treasury Securities forming a part of each Treasury Unit, as the
case may be, from the Pledge.

Section 5.08. Early Settlement. (a) Subject to and upon compliance with the provisions of
this Section 5.08, at the option of the Holder thereof, Purchase Contracts underlying Units may be
settled early (“Early Settlement”) at any time prior to 5:00 p.m., New York City time, on the
second Business Day immediately preceding the Purchase Contract Settlement Date, other than during
a Blackout Period in the case of Corporate Units; provided that no Early Settlement will be
permitted pursuant to this Section 5.08 unless, at the time such Early Settlement is effected,
there is an effective Registration Statement with respect to any securities to be issued and
delivered in connection with such Early Settlement, if such a Registration Statement is required
(in the view of counsel, which need not be in the form of a written opinion, for the Company) under
the Securities Act. If such a Registration Statement is so required, the Company covenants and
agrees to (i) use its commercially reasonable efforts to have in effect a Registration Statement
covering any securities to be delivered in respect of the Purchase Contracts being settled and (ii)
provide a Prospectus in connection therewith, in each case in a form that may be used in connection
with such Early Settlement (it being understood that if there is a material business transaction or
development that has not yet been publicly disclosed, the Company will not be required to file such
Registration Statement or provide such a Prospectus, and the right to effect Early Settlement will
not be available, until the Company has publicly disclosed such transaction or development,
provided that the Company will use its commercially reasonable efforts to make such disclosure as
soon as it is commercially reasonable to do so).

(b) In order to exercise the right to effect Early Settlement with respect to any Purchase
Contracts, the Holder of the Certificate evidencing Units (in the case of Certificates in
definitive certificated form) shall deliver, at any time prior to 5:00 p.m., New York City time, on
the second Business Day immediately preceding the Purchase Contract Settlement Date, other than
during a Blackout Period in the case of Corporate Units, such Certificate to the Purchase Contract
Agent at the Corporate Trust Office in New York City, duly endorsed for transfer to the Company or
in blank with the form of Election to Settle Early on the reverse thereof duly completed and
accompanied by payment (payable to the
Company in immediately available funds) in an amount (the “Early Settlement Amount”) equal to:

(i) (1) the Stated Amount, multiplied by (2) the number of Purchase Contracts with
respect to which the Holder has elected to effect Early Settlement in accordance with this
Section 5.08, plus

 

78

 

(ii) if the delivery for Early Settlement is made with respect to any Purchase
Contract during the period from the close of business on any Record Date next preceding
any Contract Adjustment Payment Date to the opening of business on such Contract
Adjustment Payment Date, an amount equal to the Contract Adjustment Payments payable on
the Contract Adjustment Payment Date with respect to such Purchase Contracts being
settled, unless the Company elected to defer Contract Adjustment Payments on the date of
such Early Settlement.

In the case of Book-Entry Interests, each Beneficial Owner electing Early Settlement must
deliver the Early Settlement Amount to the Purchase Contract Agent along with a facsimile of the
Election to Settle Early form duly completed, make book-entry transfer of such Book-Entry Interests
and comply with the applicable procedures of the Depositary. In addition, so long as the Units are
evidenced by one or more Global Certificates deposited with the Depositary, procedures for early
settlement will also be governed by standing arrangements between the Depositary and the Purchase
Contract Agent.

If the foregoing requirements are first satisfied with respect to Purchase Contracts
underlying any Units prior to 5:00 p.m., New York City time, on a Business Day, such day shall be
the “Early Settlement Date” with respect to such Units and if such requirements are first satisfied
at or after 5:00 p.m., New York City time, on a Business Day or on a day that is not a Business
Day, the “Early Settlement Date” with respect to such Units shall be the next succeeding Business
Day.

Upon the receipt of such Certificate and Early Settlement Amount from the Holder, the Purchase
Contract Agent shall pay to the Company such Early Settlement Amount, the receipt of which payment
the Company shall confirm in writing. The Purchase Contract Agent shall then notify the Collateral
Agent that (A) such Holder has elected to effect an Early Settlement, which notice shall set forth
the number of such Purchase Contracts as to which such Holder has elected to effect Early
Settlement, (B) 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 Amount and (C) all conditions
to such Early Settlement have been satisfied.

 

79

 

Upon receipt by the Collateral Agent of the notice from the Purchase Contract Agent set forth
in the preceding paragraph, the Collateral Agent shall release from the Pledge, (1) in the case of
a Holder of Corporate Units, the Notes
underlying the Pledged Applicable Ownership Interests in Notes, or the Pledged Applicable
Ownership Interests in the Treasury Portfolio, as the case may be, relating to the Purchase
Contracts to which Early Settlement is effected, or (2) in the case of a Holder of Treasury Units,
Pledged Treasury Securities, in each case 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
Applicable Ownership Interests in the Treasury Portfolio or Notes underlying such Pledged
Applicable Ownership Interests in Notes or Pledged Treasury Securities, as the case may be, to the
Purchase Contract Agent for distribution to such Holder, in each case free and clear of the Pledge
created hereby.

Holders of Corporate Units and Treasury Units may only effect Early Settlement pursuant to
this Section 5.08 in integral multiples of 20 Corporate Units or 20 Treasury Units, as the case may
be. If Applicable Ownership Interests in the Treasury Portfolio have replaced Applicable Ownership
Interests in Notes as a component of the Corporate Units, Corporate Units Holders may only effect
Early Settlement pursuant to this Section 5.08 in integral multiples of 50,000 Corporate Units.

(c) Upon Early Settlement of Purchase Contracts by a Holder of the related Units:

(i) the Holder will receive a number of shares of Common Stock (or in the case of an
Early Settlement following a Reorganization Event, a number of Exchange Property Units)
equal to the applicable Minimum Settlement Rate for each Purchase Contract as to which
Early Settlement is effected, subject to adjustment under Section 5.05;

(ii) the Notes, the Applicable Ownership Interest in the Treasury Portfolio or the
Treasury Securities, as the case may be, related to the Corporate Units or Treasury Units
will be transferred to the Holder free and clear of the Company’s security interest;

(iii) the Holder will be entitled to receive any accrued and unpaid Contract
Adjustment Payments (including any accrued and unpaid deferred Contract Adjustment
Payments and Compounded Contract Adjustment Payments thereon) to, but excluding, the
quarterly Contract Adjustment Payment Date immediately preceding the Early Settlement
Date;

(iv) the Holder’s right to receive future Contract Adjustment Payments and any
accrued and unpaid Contract Adjustment Payments for the period since the most recent
quarterly Payment Date (including any accrued and unpaid deferred Contract Adjustment
Payments and Compounded Contract Adjustment Payments thereon) will terminate; and

 

80

 

(v) no adjustment will be made to or for the Holder on account of any accrued and
unpaid Contract Adjustment Payments (including any accrued and unpaid deferred Contract
Adjustment Payments and Compounded Contract Adjustment Payments thereon) referred to in
the immediately preceding clause (iv).

(d) No later than the third Business Day after the applicable Early Settlement Date, the
Company shall cause the shares of Common Stock or Exchange Property Units issuable upon Early
Settlement of Purchase Contracts to be issued and the Notes, the Applicable Ownership Interests in
the Treasury Portfolio or Treasury Securities, as the case may be, to be delivered, together with
payment in lieu of any fraction of a share, as provided in Section 5.09.

(e) Upon Early Settlement of any Purchase Contracts, and subject to receipt of shares of
Common Stock or Exchange Property Units from the Company and the Notes, the Applicable Ownership
Interests in the Treasury Portfolio or Treasury Securities, as the case may be, from the Securities
Intermediary, as applicable, the Purchase Contract Agent shall, in accordance with the instructions
provided by the Holder thereof on the applicable form of Election to Settle Early on the reverse of
the Certificate evidencing the related Units:

(i) transfer to the Holder the Notes, the Applicable Ownership Interests in the
Treasury Portfolio or Treasury Securities, as the case may be, related to such Units,

(ii) deliver to the Holder a certificate or certificates for the full number of
 shares of Common Stock or Exchange Property Units issuable upon such Early Settlement,
together with payment in lieu of any fraction of a share, as provided in Section 5.09, and

(iii) if so required under the Securities Act, deliver a Prospectus for the shares of
Common Stock issuable upon such Early Settlement as contemplated by Section 5.08(a).

(f) In the event that Early Settlement is effected with respect to Purchase Contracts
underlying less than all the Units evidenced by a Certificate, upon such Early Settlement the
Company shall execute and the Purchase Contract Agent shall execute on behalf of the Holder,
authenticate and deliver to the Holder thereof, at the expense of the Company, a Certificate
evidencing the Units as to which Early Settlement was not effected.

 

81

 

Section 5.09. No Fractional Shares. No fractional shares or scrip representing fractional
shares of Common Stock shall be issued or delivered upon settlement on the Purchase Contract
Settlement Date, or upon Early Settlement or Fundamental Change Early Settlement of any Purchase
Contracts. If Certificates evidencing more than one Purchase Contract shall be surrendered for
settlement at
one time by the same Holder, the number of full shares of Common Stock which shall be
delivered upon settlement shall be computed on the basis of the aggregate number of Purchase
Contracts evidenced by the Certificates so surrendered. Instead of any fractional share of Common
Stock which would otherwise be deliverable upon settlement of any Purchase Contracts on the
Purchase Contract Settlement Date, or upon Early Settlement or Fundamental Change Early Settlement,
the Company, through the Purchase Contract Agent, shall make a cash payment in respect of such
fractional interest in an amount equal to the percentage of such fractional share multiplied by the
Closing Price on the Trading Day immediately preceding the Purchase Contract Settlement Date (or,
in the case of any Early Settlement or Fundamental Change Early Settlement, the Closing Price the
Trading Day immediately preceding the Early Settlement Date or Fundamental Change Early Settlement
Date, as the case may be). The Company shall provide the Purchase Contract Agent from time to time
with sufficient funds to permit the Purchase Contract Agent to make all cash payments required by
this Section 5.09 in a timely manner.

Section 5.10. Charges and Taxes. The Company will pay all stock transfer and similar taxes
attributable to the initial issuance and delivery of the shares of Common Stock pursuant to the
Purchase Contracts; provided, however, that the Company shall not be required to pay any such tax
or taxes which may be payable in respect of any exchange of or substitution for a Certificate
evidencing a Unit or any issuance of a share of Common Stock in a name other than that of the
registered Holder of a Certificate surrendered in respect of the Units evidenced thereby, other
than in the name of the Purchase Contract Agent, as custodian for such Holder, and the Company
shall not be required to issue or deliver such share certificates or Certificates unless or until
the Person or Persons requesting the transfer or issuance thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the Company that such tax
has been paid.

Section 5.11. Contract Adjustment Payments. (a) Subject to the provisions of this Section
5.11 and Section 5.12, the Company shall pay, on each Contract Adjustment Payment Date, the
Contract Adjustment Payments payable in respect of each Purchase Contract to the Person in whose
name a Certificate is registered at the close of business on the Record Date relating to such
Contract Adjustment Payment Date. The Contract Adjustment Payments will be payable at the office
of the Purchase Contract Agent in the Borough of Manhattan, New York City maintained for that
purpose. If the book-entry system for the Units has been terminated, the Contract Adjustment
Payments will be payable, at the option of the Company, by check mailed to the address of the
Person entitled thereto at such Person’s address as it appears on the Security Register, or by wire
transfer to the account designated by such Person by a written notice to the Purchase Contract
Agent given at least five Business Days prior to the Contract Adjustment Payment Date. If any date
on which Contract Adjustment Payments are to be made is not a Business Day, then payment of the
Contract Adjustment Payments
payable on such date will be made on the next succeeding day that is a Business Day (and
without any interest in respect of any such delay). Contract Adjustment Payments payable for any
period will be computed on the basis of a 360-day year of twelve 30-day months. The Contract
Adjustment Payments will accrue from the date of this Agreement.

 

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(b) Upon the occurrence of a Termination Event, the Company’s obligation to pay future
Contract Adjustment Payments (including any accrued and unpaid Contract Adjustment Payments) and
any deferred Contract Adjustment Payments (including Compounded Contract Adjustment Payments
thereon) shall cease.

(c) Each Certificate delivered under this Agreement upon registration of transfer of or in
exchange for or in lieu of (including as a result of a Collateral Substitution or the recreation of
Corporate Units) any other Certificate shall carry the right to accrued and unpaid Contract
Adjustment Payments and deferred Contract Adjustment Payments (including Compounded Contract
Adjustment Payments thereon), that was carried by the Purchase Contracts underlying such other
Certificates.

(d) In the case of any Unit with respect to which Early Settlement or Fundamental Change Early
Settlement of the underlying Purchase Contract is effected on a date that is after any Record Date
and prior to or on the next succeeding Contract Adjustment Payment Date, Contract Adjustment
Payments and deferred Contract Adjustment Payments (including Compounded Contract Adjustment
Payments thereon) otherwise payable on such Contract Adjustment Payment Date shall be payable on
such Contract Adjustment Payment Date notwithstanding such Early Settlement or Fundamental Change
Early Settlement, and such Contract Adjustment Payments and deferred Contract Adjustment Payments
(including Compounded Contract Adjustment Payments thereon) shall be paid to the Person in whose
name the Certificate evidencing such Unit is registered at the close of business on such Record
Date. Except as otherwise provided in the preceding sentence, in the case of any Unit with respect
to which Early Settlement or Fundamental Change Early Settlement of the underlying Purchase
Contract is effected, accrued and unpaid Contract Adjustment Payments otherwise payable after (i)
the quarterly Contract Adjustment Payment Date immediately preceding the Early Settlement Date in
connection with an Early Settlement and (ii) the Fundamental Change Early Settlement Date in
connection with a Fundamental Change Early Settlement, with respect to such Purchase Contract shall
not be payable.

(e) The Company’s obligations with respect to Contract Adjustment Payments and deferred
Contract Adjustment Payments (including Compounded Contract Adjustment Payments thereon), if any,
will be subordinated and junior in right of payment to the Company’s obligations under any Senior
Indebtedness.

 

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(f) In the event (x) of any payment by, or distribution of assets of, the Company of any kind
or character, whether in cash, property or securities, to creditors upon any dissolution,
winding-up, liquidation or reorganization of the Company, whether voluntary or involuntary or in
bankruptcy, insolvency, receivership or other proceedings, or (y) subject to the provisions of
Section 5.11(i) below, that (i) a default shall have occurred and be continuing with respect to the
payment of principal, interest or any other monetary amounts due and payable on any Senior
Indebtedness and such default shall have continued beyond the period of grace, if any, specified in
the instrument evidencing such Senior Indebtedness (and the Purchase Contract Agent shall have
received written notice thereof from the Company or one or more holders of Senior Indebtedness or
their representative or representatives or the trustee or trustees under any indenture pursuant to
which any such Senior Indebtedness may have been issued), or (ii) there shall have occurred a
default (other than a default in the payment of principal or interest on other monetary amounts due
and payable) in respect of any Senior Indebtedness, as defined therein or in the instrument under
which the same is outstanding, permitting the holder or holders thereof to accelerate the maturity
thereof (with notice or lapse of time, or both) and such default shall have continued beyond the
period of grace, if any, in respect thereof and, in the cases of subclauses (i) and (ii) of this
clause (y), such default shall not have been cured or waived or shall not have ceased to exist,
then:

(i) the holders of all Senior Indebtedness shall first be entitled to receive, in the
case of clause (x) above, payment of all amounts due or to become due upon all Senior
Indebtedness and, in the case of subclauses (i) and (ii) of clause (y) above, payment of
all amounts due thereon, or provision shall be made for such payment in money or money’s
worth, before the Holders of any of the Units are entitled to receive any Contract
Adjustment Payments or deferred Contract Adjustment Payments (including Compounded
Contract Adjustment Payments thereon) on the Purchase Contracts underlying the Units;

(ii) any payment by, or distribution of assets of, the Company of any kind or
character, whether in cash, property or securities, to which the Holders of any of the
Units would be entitled except for the provisions of Section 5.11(f) through (r) including
any such payment or distribution which may be payable or deliverable by reason of the
payment of any other indebtedness of the Company being subordinated to the payment of such
Contract Adjustment Payments or deferred Contract Adjustment Payments (including
Compounded Contract Adjustment Payments thereon) on the Purchase Contracts underlying the
Units, shall be paid or delivered by the Person making such payment or distribution,
whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly
to the representative or representatives of the holders of Senior Indebtedness or to the
trustee or trustees under any indenture under which any instruments evidencing any of such
Senior Indebtedness may have been issued, ratably
according to the aggregate amounts remaining unpaid on account of such Senior
Indebtedness held or represented by each, to the extent necessary to make payment in full
of all Senior Indebtedness remaining unpaid after giving effect to any concurrent payment
or distribution (or provision therefor) to the holders of such Senior Indebtedness, before
any payment or distribution is made of such Contract Adjustment Payments or deferred
Contract Adjustment Payments (including Compounded Contract Adjustment Payments thereon)
to the Holders of such Units; and

 

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(iii) in the event that, notwithstanding the foregoing, any payment by, or
distribution of assets of, the Company of any kind or character, whether in cash, property
or securities, including any such payment or distribution which may be payable or
deliverable by reason of the payment of any other indebtedness of the Company being
subordinated to the payment of Contract Adjustment Payments or deferred Contract
Adjustment Payments (including Compounded Contract Adjustment Payments thereon) on the
Purchase Contracts underlying the Units, shall be received by the Purchase Contract Agent
or the Holders of any of the Units when such payment or distribution is prohibited
pursuant to Section 5.11(f) through (r), such payment or distribution shall be paid over
to the representative or representatives of the holders of Senior Indebtedness or to the
trustee or trustees under any indenture pursuant to which any instruments evidencing any
such Senior Indebtedness may have been issued, ratably as aforesaid, for application to
the payment of all Senior Indebtedness remaining unpaid until all such Senior Indebtedness
shall have been paid in full, after giving effect to any concurrent payment or
distribution (or provision therefor) to the holders of such Senior Indebtedness.

(g) For purposes of Section 5.11(f) through (r), the words “cash, property or securities”
shall not be deemed to include shares of stock of the Company as reorganized or readjusted, or
securities of the Company or any other Person provided for by a plan of reorganization or
readjustment, the payment of which is subordinated at least to the extent provided in Section
5.11(f) through (r) with respect to such Contract Adjustment Payments or deferred Contract
Adjustment Payments (including Compounded Contract Adjustment Payments thereon) on the Units to the
payment of all Senior Indebtedness which may at the time be outstanding; provided that (i) the
indebtedness or guarantee of indebtedness, as the case may be, that constitutes Senior Indebtedness
is assumed by the Person, if any, resulting from any such reorganization or readjustment, and (ii)
the rights of the holders of the Senior Indebtedness are not, without the consent of each such
holder adversely affected thereby, altered by such reorganization or readjustment;

 

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(h) Any failure by the Company to make any payment on or perform any other obligation under
Senior Indebtedness, other than any indebtedness incurred by the Company or assumed or guaranteed,
directly or indirectly, by the
Company for money borrowed (or any deferral, renewal, extension or refunding thereof) or any
indebtedness or obligation as to which the provisions of Section 5.11(f) through (r) shall have
been waived by the Company in the instrument or instruments by which the Company incurred, assumed,
guaranteed or otherwise created such indebtedness or obligation, shall not be deemed a default or
event of default if (i) the Company shall be disputing its obligation to make such payment or
perform such obligation and (ii) either (A) no final judgment relating to such dispute shall have
been issued against the Company which is in full force and effect and is not subject to further
review, including a judgment that has become final by reason of the expiration of the time within
which a party may seek further appeal or review, and (B) in the event a judgment that is subject to
further review or appeal has been issued, the Company shall in good faith be prosecuting an appeal
or other proceeding for review and a stay of execution shall have been obtained pending such appeal
or review.

(i) Subject to the irrevocable payment in full of all Senior Indebtedness, the Holders of the
Units shall be subrogated (equally and ratably with the holders of all obligations of the Company
which by their express terms are subordinated to Senior Indebtedness of the Company to the same
extent as payment of the Contract Adjustment Payments and deferred Contract Adjustment Payments
(including Compounded Contract Adjustment Payments thereon) in respect of the Purchase Contracts
underlying the Units is subordinated and which are entitled to like rights of subrogation) to the
rights of the holders of Senior Indebtedness to receive payments or distributions of cash, property
or securities of the Company applicable to the Senior Indebtedness until all such Contract
Adjustment Payments and deferred Contract Adjustment Payments (including Compounded Contract
Adjustment Payments thereon) owing on the Units shall be paid in full, and as between the Company,
its creditors other than holders of such Senior Indebtedness and the Holders, no such payment or
distribution made to the holders of Senior Indebtedness by virtue of Section 5.11(f) through (r)
that otherwise would have been made to the Holders shall be deemed to be a payment by the Company
on account of such Senior Indebtedness, it being understood that the provisions of Section 5.11(f)
through (r) are and are intended solely for the purpose of defining the relative rights of the
Holders, on the one hand, and the holders of Senior Indebtedness, on the other hand.

(j) Nothing contained in Section 5.11(f) through (r) or elsewhere in this Agreement or in the
Units is intended to or shall impair, as among the Company, its creditors other than the holders of
Senior Indebtedness and the Holders, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders such Contract Adjustment Payments and deferred Contract
Adjustment Payments (including Compounded Contract Adjustment Payments thereon) on the Units as and
when the same shall become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders and creditors of the Company other than the holders
of Senior Indebtedness, nor shall anything herein or therein prevent the Purchase Contract Agent or
any Holder
from exercising all remedies otherwise permitted by applicable law upon default under this
Agreement, subject to the rights, if any, under Section 5.11(f) through (r), of the holders of
Senior Indebtedness in respect of cash, property or securities of the Company received upon the
exercise of any such remedy.

 

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(k) Upon payment or distribution of assets of the Company referred to in Section 5.11(f)
through (r), the Purchase Contract Agent and the Holders shall be entitled to rely upon any order
or decree made by any court of competent jurisdiction in which any such dissolution, winding up,
liquidation or reorganization proceeding affecting the affairs of the Company is pending or upon a
certificate of the trustee in bankruptcy, receiver, assignee for the benefit of creditors,
liquidating trustee or Purchase Contract Agent or other person making any payment or distribution,
delivered to the Purchase Contract Agent or to the Holders, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of the Senior
Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent thereto or to these
Section 5.11(f) through (r).

(l) The Purchase Contract Agent shall be entitled to rely on the delivery to it of a written
notice by a Person representing himself to be a holder of Senior Indebtedness (or a trustee or
representative on behalf of such holder) to establish that such notice has been given by a holder
of Senior Indebtedness or a trustee or representative on behalf of any such holder or holders. In
the event that the Purchase Contract Agent determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior Indebtedness to participate
in any payment or distribution pursuant to Section 5.11(f) through (r), the Purchase Contract Agent
may request such Person to furnish evidence to the reasonable satisfaction of the Purchase Contract
Agent as to the amount of Senior Indebtedness held by such Person, the extent to which such Person
is entitled to participate in such payment or distribution and any other facts pertinent to the
rights of such Person under Section 5.11(f) through (r), and, if such evidence is not furnished,
the Purchase Contract Agent may defer payment to such Person pending judicial determination as to
the right of such Person to receive such payment.

(m) Nothing contained in Section 5.11(f) through (r) shall affect the obligations of the
Company to make, or prevent the Company from making, payment of the Contract Adjustment Payments
and deferred Contract Adjustment Payments (including Compounded Contract Adjustment Payments
thereon), except as otherwise provided in these Section 5.11(f) through (r).

(n) Each Holder of Units, by its acceptance thereof, authorizes and directs the Purchase
Contract Agent on its behalf to take such action as may be necessary or appropriate to effectuate
the subordination provided in Section 5.11(f) through (r) and appoints the Purchase Contract Agent
its attorney-in-fact, as the case may be, for any and all such purposes.

 

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(o) The Company shall give prompt written notice to the Purchase Contract Agent of any fact
known to the Company that would prohibit the making of any payment of moneys to or by the Purchase
Contract Agent in respect of the Units pursuant to the provisions of this Section. Notwithstanding
the provisions of Section 5.11(f) through (r) or any other provisions of this Agreement, the
Purchase Contract Agent shall not be charged with knowledge of the existence of any facts that
would prohibit the making of any payment of moneys to or by the Purchase Contract Agent, or the
taking of any other action by the Purchase Contract Agent, unless and until the Purchase Contract
Agent shall have received written notice thereof mailed or delivered to the Purchase Contract Agent
at its Corporate Trust Office from the Company, any Holder, or the holder or representative of any
Senior Indebtedness; provided that if at least two Business Days prior to the date upon which by
the terms hereof any such moneys may become payable for any purpose, the Purchase Contract Agent
shall not have received with respect to such moneys the notice provided for in this Section, then,
anything herein contained to the contrary notwithstanding, the Purchase Contract Agent shall have
full power and authority to receive such moneys and to apply the same to the purpose for which they
were received and shall not be affected by any notice to the contrary that may be received by it
within two Business Days prior to or on or after such date.

(p) The Purchase Contract Agent in its individual capacity shall be entitled to all the rights
set forth in this Section with respect to any Senior Indebtedness at the time held by it, to the
same extent as any other holder of Senior Indebtedness and nothing in this Agreement shall deprive
the Purchase Contract Agent of any of its rights as such holder.

(q) No right of any present or future holder of any Senior Indebtedness to enforce the
subordination herein shall at any time or in any way be prejudiced or impaired by any act or
failure to act on the part of the Company or by any noncompliance by the Company with the terms,
provisions and covenants of this Agreement, regardless of any knowledge thereof which any such
holder may have or be otherwise charged with.

(r) Nothing in this Section 5.11 shall apply to claims of, or payments to, the Purchase
Contract Agent under or pursuant to Section 7.07.

(s) With respect to the holders of Senior Indebtedness, (i) the duties and obligations of the
Purchase Contract Agent shall be determined solely by the express provisions of this Agreement;
(ii) the Purchase Contract Agent shall not be liable to any such holders if it shall, acting in
good faith, mistakenly pay over or distribute to the Holders or to the Company or any other Person
cash, property or securities to which any holders of Senior Indebtedness shall be entitled by
virtue of this Section 5.11 or otherwise; (iii) no implied covenants or obligations shall be read
into this Agreement against the Purchase Contract Agent; and (iv) the Purchase Contract Agent shall
not be deemed to be a fiduciary as to such holders.

 

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Section 5.12. Deferral of Contract Adjustment Payments. (a) The Company has the right at any
time, and from time to time, to defer payment of all or part of the Contract Adjustment Payments in
respect of each Purchase Contract by extending the period for payment of Contract Adjustment
Payments to any subsequent Contract Adjustment Payment Date (an “Extension Period”), but not beyond
the Purchase Contract Settlement Date (or, with respect to Purchase Contracts for (i) which an
effective Fundamental Change Early Settlement has occurred, the Fundamental Change Early Settlement
Date or (ii) which an effective Early Settlement has occurred, the quarterly Contract Adjustment
Payment Date immediately preceding the Early Settlement Date). Prior to the expiration of any
Extension Period, the Company may further extend such Extension Period to any subsequent Contract
Adjustment Payment Date, but not beyond the Purchase Contract Settlement Date (or any applicable
Fundamental Change Early Settlement Date or Contract Adjustment Payment Date immediately preceding
the Early Settlement Date, as the case may be).

If the Company so elects to defer Contract Adjustment Payments, the Company shall pay
additional Contract Adjustment Payments on such deferred installments of Contract Adjustment
Payments at a rate equal to 8.75% per annum, compounding on each succeeding Contract Adjustment
Payment Date, until such deferred installments are paid in full (the accrued additional Contract
Adjustment Payments thereon, being referred to herein as the “Compounded Contract Adjustment
Payments”). The Company may pay any such Deferred Contract Adjustment Payments (including
Compounded Contract Adjustment Payments thereon) on any scheduled Contract Adjustment Payment Date.

At the end of each Extension Period, including as the same may be extended as provided above,
or, in the event of an effective Early Settlement or Fundamental Change Early Settlement, on the
Early Settlement Date or Fundamental Change Early Settlement Date, as the case may be, the Company
shall pay all deferred Contract Adjustment Payments (including Compounded Contract Adjustment
Payments thereon) then due in the manner set forth in Section 5.11(a) (in the case of the end of an
Extension Period), in the manner set forth in Section 5.08(b) (in the case of an Early Settlement)
or in the manner set forth in Section 5.05(b)(ii) (in the case of a Fundamental Change Early
Settlement) to the extent such amounts are not deducted from the amount otherwise payable by the
Holder in the case of a Cash Settlement, any Early Settlement or any Fundamental Change Early
Settlement. In the event of an Early Settlement, the Company shall pay all deferred Contract
Adjustment Payments (including Compounded Contract Adjustment Payments thereon) then payable, if
any, on the Purchase Contracts being settled early through the Contract Adjustment Payment Date
immediately preceding the applicable Early Settlement Date. In the event of a Fundamental Change
Early Settlement, the Company shall pay all deferred Contract Adjustment Payments (including
Compounded Contract Adjustment Payments thereon) due on the Purchase Contracts being settled on the
Fundamental Change Early Settlement Date to but excluding such Fundamental Change Early
Settlement Date.

 

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Upon termination of any Extension Period and the payment of all deferred Contract Adjustment
Payments (including Compounded Contract Adjustment Payments thereon) and all accrued and unpaid
Contract Adjustment Payments then due, the Company may commence a new Extension Period; provided
that such Extension Period, together with all extensions thereof, may not extend beyond the
Purchase Contract Settlement Date (or any applicable Early Settlement Date or Fundamental Change
Early Settlement Date). Except in the case of an Early Settlement or Fundamental Change Early
Settlement, no Contract Adjustment Payments shall be due and payable during an Extension Period
except at the end thereof.

(b) The Company shall give written notice to the Purchase Contract Agent (and the Purchase
Contract Agent shall promptly thereafter give notice thereof to Holders of Purchase Contracts) of
its election to extend any period for the payment of Contract Adjustment Payments, the expected
length of any such Extension Period and any extension of any Extension Period, at least five
Business Days before the earlier of (i) the Record Date for the Payment Date on which Contract
Adjustment Payments would have been payable except for the election to begin or extend the
Extension Period or (ii) the date the Purchase Contract Agent is required to give notice to any
securities exchange or to Holders of Purchase Contracts of such Record Date or such Payment Date.

(c) The Company shall give written notice to the Purchase Contract Agent (and the Purchase
Contract Agent shall promptly thereafter give notice thereof to Holders of Purchase Contracts) of
the end of an Extension Period or its election to pay any portion of the deferred Contract
Adjustment Payments (including Compounded Contract Adjustment Payments thereon) on a Payment Date
prior to the end of an Extension Period, at least five Business Days before the earlier of (i) the
Record Date for the Payment Date on which such Extension Period shall end or such payment of
deferred Contract Adjustment Payments (including Compounded Contract Adjustment Payments thereon)
shall be made or (ii) the date the Purchase Contract Agent is required to give notice to any
securities exchange or to Holders of Purchase Contracts of such Record Date or such Payment Date.

(d) In the event the Company exercises its option to defer the payment of Contract Adjustment
Payments, then, until all deferred Contract Adjustment Payments (including Compounded Contract
Adjustment Payments thereon) have been paid, the Company shall not declare or pay any dividends on,
or make any distributions on, or redeem, purchase or acquire, or make a liquidation payment with
respect to, any shares of capital stock; provided that the foregoing does not apply to:

(i) any repurchase, redemption or other acquisition of shares of the Company’s
capital stock in connection with (1) any employment contract, benefit Plan or other
similar arrangement with or for the benefit of any one or more employees, officers,
directors, consultants or independent contractors or (2) a dividend reinvestment or
stockholder purchase plan;

 

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(ii) any exchange, redemption or conversion of any class or series of the Company’s
capital stock, or the capital stock of one of the Company’s subsidiaries, for any other
class or series of the Company’s capital stock, or of any class or series of the Company’s
indebtedness for any class or series of the Company’s capital stock;

(iii) any purchase of, or payment of cash in lieu of, fractional interests in shares
of the Company’s capital stock pursuant to the conversion or exchange provisions of such
capital stock or the securities being converted or exchanged;

(iv) any declaration of a dividend in connection with the issuance of rights, stock
or other property under any rights plan, or the redemption or repurchase of rights
pursuant thereto; and

(v) any dividend in the form of stock, warrants, options or other rights where the
dividend stock or stock issuable upon exercise of such warrants, options or other rights
is the same stock as that on which the dividend is being paid or ranks equally with or
junior to such stock.

ARTICLE 6

Rights and Remedies of Holders

Section 6.01. Unconditional Right of Holders to Receive Contract Adjustment Payments and to
Purchase Shares of Common Stock. Each Holder of a Unit shall have the right, which is absolute and
unconditional, (i) subject to Article 5, to receive each Contract Adjustment Payment and deferred
Contract Adjustment Payment with respect to the Purchase Contract comprising part of such Unit on
the respective Contract Adjustment Payment Date for such Unit and (ii) except upon and following a
Termination Event, to purchase shares of Common Stock pursuant to the Purchase Contract comprising
part of such Unit and, in each such case, to institute suit for the enforcement of any such right
to receive Contract Adjustment Payments and the right to purchase shares of Common Stock, and such
right shall not be impaired without the consent of such Holder.

 

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Section 6.02. Restoration of Rights and Remedies. If any Holder has instituted any
proceeding to enforce any right or remedy under this Agreement and such proceeding has been
discontinued or abandoned for any reason, or has
been determined adversely to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company and such Holder shall be restored severally and
respectively to their former positions hereunder, and thereafter all rights and remedies of such
Holder shall continue as though no such proceeding had been instituted.

Section 6.03. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Certificates in the last
paragraph of Section 3.10, no right or remedy herein conferred upon or reserved to the Holders is
intended to be exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

Section 6.04. Delay or Omission Not Waiver. No delay or omission of any Holder to exercise
any right upon a default or remedy upon a default shall impair any such right or remedy or
constitute a waiver of any such right. Every right and remedy given by this Article 6 or by law to
the Holders may be exercised from time to time, and as often as may be deemed expedient, by such
Holders.

Section 6.05. Undertaking for Costs. All parties to this Agreement agree, and each Holder of
a Unit, by its acceptance of such Unit shall be deemed to have agreed, that any court of competent
jurisdiction may in its discretion require, in any suit for the enforcement of any right or remedy
under this Agreement, or in any suit against the Purchase Contract Agent for any action taken,
suffered or omitted by it as Purchase Contract Agent, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and costs against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses made by such party
litigant; provided that the provisions of this Section shall not apply to any suit instituted by
the Purchase Contract Agent, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% of the Outstanding Units, or to any suit instituted by any Holder for
the enforcement of any interest on any Notes owed pursuant to such Holder’s Applicable Ownership
Interests in Notes or Contract Adjustment Payments on or after the respective Payment Date therefor
in respect of any Unit held by such Holder, or for enforcement of the right to purchase shares of
Common Stock under the Purchase Contracts constituting part of any Unit held by such Holder.

 

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Section 6.06. Waiver of Stay or Extension Laws. The Company covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Agreement; and the Company (to the
extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any power herein granted to
the Purchase Contract Agent or the Holders, but will suffer and permit the execution of every such
power as though no such law had been enacted.

ARTICLE 7

The Purchase Contract Agent

Section 7.01. Certain Duties and Responsibilities.

(a) The Purchase Contract Agent:

(i) undertakes to perform, with respect to the Units, such duties and only such
duties as are specifically set forth in this Agreement and the Remarketing Agreement to be
performed by the Purchase Contract Agent and no implied covenants or obligations shall be
read into this Agreement or the Remarketing Agreement against the Purchase Contract Agent;
and

(ii) in the absence of bad faith on its part, may, with respect to the Units,
conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Purchase Contract Agent
and conforming to the requirements of this Agreement or the Remarketing Agreement, as
applicable, but in the case of any certificates or opinions which by any provision hereof
are specifically required to be furnished to the Purchase Contract Agent, the Purchase
Contract Agent shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Agreement or the Remarketing Agreement, as applicable
(but need not confirm or investigate the accuracy of the mathematical calculations or
other facts, statements, opinions or conclusions stated therein).

(b) No provision of this Agreement or the Remarketing Agreement shall be construed to relieve
the Purchase Contract Agent from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that:

(i) this Section 7.01(b) shall not be construed to limit the effect of Section
7.01(a) and Section 7.01(c);

(ii) the Purchase Contract Agent shall not be liable for any error of judgment made
in good faith by a Responsible Officer, unless it
shall be conclusively determined by a court of competent jurisdiction that the
Purchase Contract Agent was negligent in ascertaining the pertinent facts; and

 

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(c) No provision of this Agreement or the Remarketing Agreement shall require the Purchase
Contract Agent to expend or risk its own funds or otherwise incur any liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it.

(d) Whether or not therein expressly so provided, every provision of this Agreement and the
Remarketing Agreement relating to the conduct or affecting the liability of or affording protection
to the Purchase Contract Agent shall be subject to the provisions of this Section.

(e) The Purchase Contract Agent is authorized to execute and deliver the Remarketing Agreement
in its capacity as Purchase Contract Agent. The rights, privileges, protections, immunities and
benefits afforded to the Purchase Contract Agent and each Indemnitee under this Agreement,
including, without limitation, its and their rights to be indemnified, shall also extend to and
cover the Purchase Contract Agent and each Indemnitee with respect to the role of the Purchase
Contract Agent as Purchase Contract Agent under, including action taken, omitted to be taken or
suffered by the Purchased Contract Agent pursuant to, the Remarketing Agreement.

(f) On or prior to the date that is 30 days prior to the first day of the Optional Remarketing
Period, at the Company’s request given at least five Business Days prior to such 30th day, the
Purchase Contract Agent shall deliver to the Company and the Remarketing Agent(s) an executed
counterpart of the Remarketing Agreement, signed by an authorized signatory of the Purchase
Contract Agent.

Section 7.02. Notice of Default. Within 30 days after the occurrence of any default by the
Company hereunder of which a Responsible Officer of the Purchase Contract Agent has actual
knowledge, the Purchase Contract Agent shall transmit by mail to the Company and the Holders, as
their names and addresses appear in the Security Register, notice of such default hereunder, unless
such default shall have been cured or waived.

Section 7.03. Certain Rights of Purchase Contract Agent.

Subject to the provisions of Section 7.01:

(a) the Purchase Contract Agent may, in the absence of bad faith, conclusively rely and shall
be fully protected in acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document believed by it to be genuine and to have been signed or presented by the
proper party or parties;

 

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(b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by an Officers’ Certificate, Issuer Order or Issuer Request, and any resolution of the Board of
Directors of the Company may be sufficiently evidenced by a Board Resolution;

(c) whenever in the administration of this Agreement or the Remarketing Agreement the Purchase
Contract Agent shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting to take any action hereunder or thereunder, the Purchase Contract Agent
(unless other evidence be herein or therein specifically prescribed) may, in the absence of bad
faith on its part, conclusively rely upon an Officers’ Certificate of the Company;

(d) the Purchase Contract Agent may consult with counsel of its selection and the advice of
such counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon;

(e) the Purchase Contract Agent shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document, but the Purchase Contract Agent, in its discretion, may make reasonable further
inquiry or investigation into such facts or matters related to the execution, delivery and
performance of the Purchase Contracts as it may see fit, and, if the Purchase Contract Agent shall
determine to make such further inquiry or investigation, it shall be entitled to examine the
relevant books, records and premises of the Company, personally or by agent or attorney;

(f) the Purchase Contract Agent may execute any of the powers hereunder or perform any duties
hereunder either directly or by or through agents, attorneys, custodians or nominees or an
Affiliate of the Purchase Contract Agent and the Purchase Contract Agent shall not be responsible
for any misconduct or negligence on the part of any agent, attorney, custodian or nominee or an
Affiliate appointed with due care by it hereunder;

(g) the Purchase Contract Agent shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement at the request or direction of any of the Holders pursuant to
this Agreement, unless such Holders shall have offered to the Purchase Contract Agent security or
indemnity satisfactory to the Purchase Contract Agent against the costs, expenses and liabilities
which might be incurred by it in compliance with such request or direction;

 

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(h) the Purchase Contract Agent shall not be liable for any action taken, suffered, or omitted
to be taken by it in the absence of bad faith by it and believed by it to be authorized and within
the discretion or rights or powers conferred upon it by this Agreement;

(i) the Purchase Contract Agent shall not be deemed to have notice of any adjustment to the
Fixed Settlement Rate, the occurrence of a Termination Event or any default hereunder unless
written notice of any such adjustment, occurrence or event which is in fact such a default is
received by a Responsible Offer at the Corporate Trust Office of the Purchase Contract Agent, and
such notice references the Units or this Agreement;

(j) the Purchase Contract Agent may request that the Company deliver an Officers’ Certificate
setting forth the names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Agreement, which Officers’ Certificate may be signed by any
person authorized to sign an Officers’ Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded;

(k) the rights, privileges, protections, immunities and benefits given to the Purchase
Contract Agent, including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Purchase Contract Agent in each of its capacities hereunder, and to
each officer, director, employee of the Purchase Contract Agent and each agent, custodian and other
Person employed, in any capacity whatsoever, by the Purchase Contract Agent to act hereunder and
shall survive the resignation or removal of the Purchase Contract Agent and the termination of this
Agreement;

(l) the Purchase Contract Agent shall not be required to initiate or conduct any litigation or
collection proceedings hereunder and shall have no responsibilities with respect to any default
hereunder except as expressly set forth herein; and

(m) the permissive right of the Purchase Contract Agent to take or refrain from taking action
hereunder shall not be construed as a duty.

Section 7.04. Not Responsible for Recitals or Issuance of Units. The recitals contained
herein, in the Remarketing Agreement and in the Certificates shall be taken as the statements of
the Company, and the Purchase Contract Agent assumes no responsibility for their accuracy or
validity. The Purchase Contract Agent makes no representations as to the validity or sufficiency
of either this Agreement or of the Units or the Pledge or the Collateral or the Remarketing
Agreement and shall have no responsibility for perfecting or maintaining the perfection of any
security interest in the Collateral. The Purchase Contract Agent shall not be accountable for the
use or application by the Company of the proceeds in respect of the Purchase Contracts.

 

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Section 7.05. May Hold Units. Any Security Registrar or any other agent of the Company, or
the Purchase Contract Agent and its Affiliates, in their individual or any other capacity, may
become the owner or pledgee of Units and may otherwise deal with the Company, the Collateral Agent
or any other Person with the same rights it would have if it were not Security Registrar or such
other agent, or the Purchase Contract Agent. The Company may become the owner or pledgee of Units.

Section 7.06. Money Held in Custody. Money held by the Purchase Contract Agent in custody
hereunder need not be segregated from the Purchase Contract Agent’s other funds except to the
extent required by law or provided herein; provided, however, that when the Purchase Contract Agent
holds cash as a component of the Treasury Portfolio or a Treasury Unit, such cash shall be held in
a segregated account hereunder. The Purchase Contract Agent shall be under no obligation to invest
or pay interest on any money received by it hereunder except as otherwise provided hereunder or
agreed in writing with the Company.

Section 7.07. Compensation and Reimbursement.

The Company agrees:

(a) to pay to the Purchase Contract Agent compensation for all services rendered by it
hereunder and under the Remarketing Agreement as the Company and the Purchase Contract Agent shall
from time to time agree in writing;

(b) except as otherwise expressly provided for herein, to reimburse the Purchase Contract
Agent upon its request for all reasonable expenses, disbursements and advances incurred or made by
the Purchase Contract Agent in accordance with any provision of this Agreement and the Remarketing
Agreement (including the reasonable compensation and the expenses and disbursements of its agents
and counsel) and in connection with the negotiation, preparation, execution and delivery and
performance of this Agreement and the Remarketing Agreement and any modification, supplement or
waiver of any of the terms thereof, except any such expense, disbursement or advance as may be
attributable to its gross negligence, willful misconduct or bad faith; and

(c) to indemnify the Purchase Contract Agent and any predecessor Purchase Contract Agent and
each of its directors, officers, agents and employees (collectively, with the Purchase Contract
Agent, the “Indemnitees”) for, and to hold each Indemnitee harmless against, any loss, claim,
damage, fine, penalty, liability, fee or expense (including reasonable fees and expenses of
counsel) incurred without gross negligence, willful misconduct or bad faith on its part, arising
out of or in connection with the acceptance or administration of its duties hereunder and under the
Remarketing Agreement, including the Indemnitees’ reasonable costs and expenses of defending
themselves against any claim (whether asserted by the Company, a Holder or any other Person) or
liability in connection with the exercise or performance of any of the Purchase Contract
Agent’s powers or duties hereunder or thereunder or of enforcing the provisions of this
Section.

 

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The provisions of this Section shall survive the resignation and removal of the Purchase
Contract Agent, the satisfaction or discharge of the Units and the Purchase Contracts and the
termination of this Agreement.

Section 7.08. Corporate Purchase Contract Agent Required; Eligibility. There shall at all
times be a Purchase Contract Agent hereunder which shall be a Person organized and doing business
under the laws of the United States of America, any State thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers and having (or being a member of a
bank holding company having) a combined capital and surplus of at least $50,000,000, subject to
supervision or examination by Federal or State authority and having a corporate trust office in the
Borough of Manhattan, New York City, if there be such a Person in the Borough of Manhattan, New
York City, qualified and eligible under this Article and willing to act on reasonable terms. If
such Person publishes or files reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published or filed. If at any time the
Purchase Contract Agent shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect hereinafter specified in
this Article.

Section 7.09. Resignation and Removal; Appointment of Successor. (a) No resignation or
removal of the Purchase Contract Agent and no appointment of a successor Purchase Contract Agent
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Purchase Contract Agent in accordance with the applicable requirements of Section 7.10.

(b) The Purchase Contract Agent may resign at any time by giving written notice thereof to the
Company 60 days prior to the effective date of such resignation. If the instrument of acceptance
by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to
the Purchase Contract Agent within 30 days after the giving of such notice of resignation, the
resigning Purchase Contract Agent may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Purchase Contract Agent.

(c) The Purchase Contract Agent may be removed at any time by Act of the Holders of a majority
in number of the Outstanding Units delivered to the Purchase Contract Agent and the Company. If
the instrument of acceptance by a successor Purchase Contract Agent required by Section 7.10 shall
not have been delivered to the Purchase Contract Agent within 30 days after such Act, the
Purchase Contract Agent being removed may petition any court of competent jurisdiction for the
appointment of a successor Purchase Contract Agent.

 

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(d) If at any time:

(i) the Purchase Contract Agent fails to comply with Section 310(b) of the TIA, as if
the Purchase Contract Agent were an indenture trustee under an indenture qualified under
the TIA, and shall fail to resign after written request therefor by the Company or by any
Holder who has been a bona fide Holder of a Unit for at least six months;

(ii) the Purchase Contract Agent shall cease to be eligible under Section 7.08 and
shall fail to resign after written request therefor by the Company or by any such Holder;
or

(iii) the Purchase Contract Agent shall become incapable of acting or shall be
adjudged a bankrupt or insolvent or a receiver of the Purchase Contract Agent or of its
property shall be appointed or any public officer shall take charge or control of the
Purchase Contract Agent or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation,

then, in any such case, (i) the Company by a Board Resolution may remove the Purchase Contract
Agent, or (ii) any Holder who has been a bona fide Holder of a Unit for at least six months may, on
behalf of himself and all others similarly situated, petition any court of competent jurisdiction
for the removal of the Purchase Contract Agent and the appointment of a successor Purchase Contract
Agent.

(e) If the Purchase Contract Agent shall resign, be removed or become incapable of acting, or
if a vacancy shall occur in the office of Purchase Contract Agent for any cause, the Company, by a
Board Resolution, shall promptly appoint a successor Purchase Contract Agent and shall comply with
the applicable requirements of Section 7.10. If no successor Purchase Contract Agent shall have
been so appointed by the Company and accepted appointment in the manner required by Section 7.10,
any Holder who has been a bona fide Holder of a Unit for at least six months, on behalf of itself
and all others similarly situated, or the Purchase Contract Agent may petition, at the expense of
the Company, any court of competent jurisdiction for the appointment of a successor Purchase
Contract Agent.

(f) The Company shall give, or shall cause such successor Purchase Contract Agent to give,
notice of each resignation and each removal of the Purchase Contract Agent and each appointment of
a successor Purchase Contract Agent by mailing written notice of such event by first-class mail,
postage prepaid, to all Holders as their names and addresses appear in the applicable Security
Register. Each notice shall include the name of the successor Purchase Contract Agent and the
address of its Corporate Trust Office.

 

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Section 7.10. Acceptance of Appointment by Successor. (a) In case of the appointment
hereunder of a successor Purchase Contract Agent, every such successor Purchase Contract Agent so
appointed shall execute, acknowledge and deliver to the Company and to the retiring Purchase
Contract Agent an instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Purchase Contract Agent shall become effective and such successor Purchase Contract
Agent, without any further act, deed or conveyance, shall become vested with all the rights,
powers, agencies and duties of the retiring Purchase Contract Agent; but, on the request of the
Company or the successor Purchase Contract Agent, such retiring Purchase Contract Agent shall, upon
payment of its charges, execute and deliver an instrument transferring to such successor Purchase
Contract Agent all the rights, powers and trusts of the retiring Purchase Contract Agent and duly
assign, transfer and deliver to such successor Purchase Contract Agent all property and money held
by such retiring Purchase Contract Agent hereunder.

(b) Upon request of any such successor Purchase Contract Agent, the Company shall execute any
and all instruments for more fully and certainly vesting in and confirming to such successor
Purchase Contract Agent all such rights, powers and agencies referred to in clause (a) of this
Section 7.10.

(c) No successor Purchase Contract Agent shall accept its appointment unless at the time of
such acceptance such successor Purchase Contract Agent shall be qualified and eligible under this
Article 7.

Section 7.11. Merger, Conversion, Consolidation or Succession to Business. Any Person into
which the Purchase Contract Agent may be merged or converted or with which it may be consolidated,
or any Person resulting from any merger, conversion or consolidation to which the Purchase Contract
Agent shall be a party, or any Person succeeding to all or substantially all the corporate trust
business of the Purchase Contract Agent, shall be the successor of the Purchase Contract Agent
hereunder, provided that such Person shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of any of the parties
hereto. In case any Certificates shall have been authenticated and executed on behalf of the
Holders, but not delivered, by the Purchase Contract Agent then in office, any successor by merger,
conversion or consolidation to such Purchase Contract Agent may adopt such authentication and
execution and deliver the Certificates so authenticated and executed with the same effect as if
such successor Purchase Contract Agent had itself authenticated and executed such Units.

Section 7.12. Preservation of Information; Communications to Holders. (a) The Purchase
Contract Agent shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders received by the Purchase Contract
Agent in its capacity as Security Registrar.

 

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(b) If three or more Holders (herein referred to as “Applicants”) apply in writing to the
Purchase Contract Agent, and furnish to the Purchase Contract Agent reasonable proof that each such
Applicant has owned a Unit for a period of at least six months preceding the date of such
application, and such application states that the Applicants desire to communicate with other
Holders with respect to their rights under this Agreement or under the Units and is accompanied by
a copy of the form of proxy or other communication which such Applicants propose to transmit, then
the Purchase Contract Agent shall mail to all the Holders copies of the form of proxy or other
communication which is specified in such request, with reasonable promptness after a tender to the
Purchase Contract Agent of the materials to be mailed and of payment, or provision for the payment,
of the reasonable expenses of such mailing.

Section 7.13. No Obligations of Purchase Contract Agent. Except to the extent otherwise
expressly provided in this Agreement, the Purchase Contract Agent assumes no obligations and shall
not be subject to any liability under this Agreement, the Remarketing Agreement or any Purchase
Contract in respect of the obligations of the Holder of any Unit thereunder. The Company agrees,
and each Holder of a Certificate, by its acceptance thereof, shall be deemed to have agreed, that
the Purchase Contract Agent’s execution of the Certificates on behalf of the Holders shall be
solely as agent and attorney-in-fact for the Holders, and that the Purchase Contract Agent shall
have no obligation to perform such Purchase Contracts on behalf of the Holders, except to the
extent expressly provided in Article Five hereof. Anything contained in this Agreement to the
contrary notwithstanding, in no event shall the Purchase Contract Agent or its officers, directors,
employees or agents be liable under this Agreement or the Remarketing Agreement for (i) indirect,
incidental, 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 Purchase
Contract Agent and regardless of the form of action or (ii) any failure or delay in the performance
of its obligations under this Agreement arising out of or caused directly or indirectly, by
circumstances beyond its control, including, without limitation, acts of God; earthquake; fires;
floods; wars; civil or military disturbances; terrorist acts; sabotage; epidemics; riots;
interruptions, loss or malfunctions of utilities; or acts of civil or military authority or
governmental actions; it being understood that the Purchase Contract Agent shall use reasonable
efforts which are consistent with accepted practices in the banking industry to resume performance
as soon as practicable under such circumstances.

 

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Section 7.14. Tax Compliance. (a) The Purchase Contract Agent, on its own behalf and on
behalf of the Company, will comply with all applicable certification, information reporting and
withholding (including “backup” withholding) requirements imposed by applicable tax laws,
regulations or administrative practice with respect to (i) any payments made with respect to the
Units or (ii) the issuance, delivery, holding, transfer, redemption or exercise of rights
under the Units. Such compliance shall include, without limitation, the preparation and timely
filing of required returns and the timely payment of all amounts required to be withheld to the
appropriate taxing authority or its designated agent.

(b) The Purchase Contract Agent shall comply in accordance with the terms hereof with any
reasonable written direction received from the Company with respect to the execution or
certification of any required documentation and the application of such requirements to particular
payments or Holders or in other particular circumstances, and may for purposes of this Agreement
conclusively rely on any such direction in accordance with the provisions of Section 7.01(a)
hereof.

(c) The Purchase Contract Agent shall maintain all appropriate records documenting compliance
with such requirements, and shall make such records available, on written request, to the Company
or its authorized representative within a reasonable period of time after receipt of such request.

ARTICLE 8

Supplemental Agreements

Section 8.01. Supplemental Agreements without Consent of Holders. Without the consent of any
Holders, the Company, when authorized by a Board Resolution, the Purchase Contract Agent, the
Collateral Agent, the Custodial Agent and the Securities Intermediary, at any time and from time to
time, may enter into one or more agreements supplemental hereto, in form satisfactory to the
Company, the Purchase Contract Agent and the Collateral Agent, the Custodial Agent and the
Securities Intermediary, to:

(a) evidence the succession of another Person to the Company, and the assumption by any such
successor of the covenants of the Company herein and in the Certificates;

(b) add to the covenants of the Company for the benefit of the Holders, or surrender any right
or power herein conferred upon the Company;

(c) evidence and provide for the acceptance of appointment hereunder by a successor Purchase
Contract Agent, Collateral Agent, Securities Intermediary or Custodial Agent;

(d) make provision with respect to the rights of Holders pursuant to the requirements of
Section 5.05(b); or

 

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(e) cure any ambiguity or to correct or supplement any provisions herein that may be
inconsistent with any other provision herein, or to make such
other provisions in regard to matters or questions arising under this Agreement that do not
adversely affect the interests of any Holders; provided that any amendment made solely to conform
the provisions of this Agreement to the description of the Units and the Purchase Contracts
contained in the preliminary prospectus supplement dated April 11, 2011 (as supplemented by the
related term sheet dated April 11, 2011), relating to the Units under the sections entitled
“Description of the Equity Units,” “Description of the Purchase Contracts” and “Certain Provisions
of the Purchase Contract and Pledge Agreement” will be deemed not to materially adversely affect
the interests of the Holders.

Section 8.02. Supplemental Agreements with Consent of Holders. With the consent of the
Holders of not less than a majority of the Outstanding Units voting together as one class,
including without limitation the consent of the Holders obtained in connection with a tender or an
exchange offer, by Act of said Holders delivered to the Company and the Purchase Contract Agent,
the Company, when authorized by a Board Resolution, the Purchase Contract Agent, the Collateral
Agent, the Securities Intermediary and the Custodial Agent may enter into an agreement or
agreements supplemental hereto for the purpose of modifying in any manner the terms of the Purchase
Contracts, or the provisions of this Agreement or the rights of the Holders in respect of the
Units; provided, however, that, except as contemplated herein, no such supplemental agreement
shall, without the consent of the Holder of each outstanding Purchase Contract affected thereby:

(a) subject to the Company’s right to defer Contract Adjustment Payments, change any Payment
Date;

(b) impair the Holders’ right to institute suit for the enforcement of any Purchase Contract
or payment of any Contract Adjustment Payments or Deferred Contract Adjustment Payments (including
Compounded Contract Adjustment Payments thereon);

(c) except as set forth in Section 5.05, reduce the number of shares of Common Stock
purchasable pursuant to any Purchase Contract, increase the purchase price of the shares of Common
Stock upon settlement of any Purchase Contract, change the Purchase Contract Settlement Date or
change the right to Early Settlement or Fundamental Change Early Settlement in a manner adverse to
the Holder or otherwise adversely affect the Holder’s rights under this Agreement or Remarketing
Agreement in any material respect;

(d) change the amount or the type of Collateral required to be Pledged to secure a Holder’s
obligations under the Purchase Contract (except for the rights of holders of Corporate Units to
substitute Treasury Securities for the Pledged Applicable Ownership Interests in Notes or the
rights of Holders of Treasury Units to substitute Notes for the Pledged Treasury Securities);

 

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(e) impair the right of the Holder of any Purchase Contract to receive distributions on the
Collateral or otherwise adversely affect the Holder’s rights in or to such Collateral;

(f) reduce any Contract Adjustment Payments or any deferred Contract Adjustment Payments
(including Compounded Contract Adjustment Payments thereon) or change any place where, or the coin
or currency in which, any Contract Adjustment Payment is payable; or

(g) reduce the percentage of the outstanding Purchase Contracts whose Holder’s consent is
required for any modification or amendment of the provisions of this Agreement or the Purchase
Contracts;

provided that if any such supplemental agreement would adversely affect only the Corporate Units or
only the Treasury Units, then only the affected voting group of Holders as of the record date for
the Holders entitled to vote thereon will be entitled to vote on such supplemental agreement, and
such supplemental agreement shall not be effective except with the consent of Holders of not less
than a majority of such voting group or, in the case of any supplemental agreement having the
effects specified in clauses (a) through (g) of this Section 8.02, each Holder affected thereby.

It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental agreement, but it shall be sufficient if such Act shall approve
the substance thereof.

Section 8.03. Execution of Supplemental Agreements. In executing, or accepting the
additional agencies created by any supplemental agreement permitted by this Article or the
modifications thereby of the agencies created by this Agreement, the Purchase Contract Agent, the
Collateral Agent, the Securities Intermediary and the Custodial Agent shall be protected, and
(subject to Section 7.01 with respect to the Purchase Contract Agent) shall be fully authorized and
protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the
execution of such supplemental agreement is authorized or permitted by this Agreement and that any
and all conditions precedent to the execution and delivery of such supplemental agreement have been
satisfied. The Purchase Contract Agent, the Collateral Agent, the Securities Intermediary and the
Custodial Agent may, but shall not be obligated to, enter into any such supplemental agreement
which affects their own rights, duties or immunities under this Agreement or otherwise.

Section 8.04. Effect of Supplemental Agreements. Upon the execution of any supplemental
agreement under this Article, this Agreement shall be modified in accordance therewith, and such
supplemental agreement 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 hereunder, shall be bound thereby.

 

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Section 8.05. Reference to Supplemental Agreements. Certificates authenticated, executed on
behalf of the Holders and delivered after the execution of any supplemental agreement pursuant to
this Article may, and shall if required by the Purchase Contract Agent, bear a notation in form
approved by the Purchase Contract Agent as to any matter provided for in such supplemental
agreement. If the Company shall so determine, new Certificates so modified as to conform, in the
opinion of the Purchase Contract Agent and the Company, to any such supplemental agreement may be
prepared and executed by the Company and authenticated, executed on behalf of the Holders and
delivered by the Purchase Contract Agent in exchange for outstanding Certificates.

ARTICLE 9

Consolidation, Merger, Conveyance, Transfer Or Lease

Section 9.01. Covenant Not To Consolidate, Merge, Convey, Transfer or Lease Property except
under Certain Conditions. The Company covenants that it will not merge or consolidate with or
convert into any entity or sell, convey, transfer, assign or otherwise dispose all or
substantially all of its assets, unless:

(a) the resulting or acquiring entity, if other than the Company, is a corporation or limited
liability company organized and existing under the laws of the United States of America or any
State thereof or the District of Columbia and expressly assumes all of the responsibilities and
liabilities of the Company under the Purchase Contracts, this Agreement, the Remarketing Agreement
(if the Company has executed a Remarketing Agreement on or prior to the time of the merger,
consolidation, conversion, sale, conveyance, transfer, assignment or other disposition) and the
Indenture (including any supplement thereto), including the payment of all amounts due on the Notes
and the Guarantee and performance of the covenants in the Indenture (including any supplement
thereto), by one or more supplemental agreements in form reasonably satisfactory to the Purchase
Contract Agent and the Collateral Agent;

(b) immediately after the transaction, and giving effect to the transaction, no Event of
Default or event which, after notice or lapse of time or both, would become an Event of Default
under the Indenture (including any supplement thereto) exists and the Company is not, or such
successor entity is not, in default of payment obligations under the Purchase Contracts, this
Agreement or the Remarketing Agreement (if the Company has executed a Remarketing Agreement on or
prior to the time of the merger, consolidation, conversion, sale, conveyance, transfer, assignment
or other disposition) or in material default in the performance of any other obligations hereunder
or thereunder.

 

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Section 9.02. Rights and Duties of Successor Person. In case of any such merger,
consolidation, conversion, sale, conveyance (other than by way of lease), transfer, assignment or
other disposition, and upon any such assumption by the
successor corporation or limited liability company in accordance with Section 9.01, such
successor corporation or limited liability company shall succeed to and be substituted for the
Company with the same effect as if it had been named herein as the Company, and the Company shall
be relieved of any obligations under this Agreement and under the Units. Such successor
corporation thereupon may cause to be signed, and may issue either in its own name or in the name
of PPL Corporation (or any permitted successor thereto) any or all of the Certificates evidencing
Units issuable hereunder which theretofore shall not have been signed by the Company and delivered
to the Purchase Contract Agent; and, upon the order of such successor instead of the Company, and
subject to all the terms, conditions and limitations in this Agreement prescribed, the Purchase
Contract Agent shall authenticate and execute on behalf of the Holders and deliver any Certificates
which previously shall have been signed and delivered by the officers of the Company to the
Purchase Contract Agent for authentication and execution, and any Certificate evidencing Units
which such successor corporation or limited liability company thereafter shall cause to be signed
and delivered to the Purchase Contract Agent for that purpose. All the Certificates issued shall
in all respects have the same legal rank and benefit under this Agreement as the Certificates
theretofore or thereafter issued in accordance with the terms of this Agreement as though all of
such Certificates had been issued at the date of the execution hereof.

In case of any such merger, consolidation, conversion, sale, assignment, transfer, or
conveyance such change in phraseology and form (but not in substance) may be made in the
Certificates evidencing Units thereafter to be issued as may be appropriate.

Section 9.03. Officers’ Certificate and Opinion of Counsel Given to Purchase Contract Agent.
The Purchase Contract Agent, subject to Section 7.01 and Section 7.03, shall receive an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that any such merger, consolidation,
sale, conveyance, transfer, assignment or other disposition, and any such assumption, complies with
the provisions of this Article and that all conditions precedent to the consummation of any such
merger, consolidation, conversion, sale, conveyance, transfer, assignment or other disposition have
been met.

ARTICLE 10

Covenants

Section 10.01. Performance under Purchase Contracts. The Company covenants and agrees for
the benefit of the Holders from time to time of the Units that it will duly and punctually perform
its obligations under the Purchase Contracts in accordance with the terms of the Purchase Contracts
and this Agreement.

 

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Section 10.02. Maintenance of Office or Agency. The Company will maintain in the Borough of
Manhattan, New York City, New York an office or agency where Certificates may be presented or
surrendered for acquisition of shares of Common Stock upon settlement of the Purchase Contracts on
the Purchase Contract Settlement Date or upon Early Settlement or Fundamental Change Early
Settlement and for transfer of Collateral upon occurrence of a Termination Event, where
Certificates may be surrendered for registration of transfer or exchange, or for a Collateral
Substitution and where notices and demands to or upon the Company in respect of the Units and this
Agreement may be served. The Company will give prompt written notice to the Purchase Contract
Agent of the location, and any change in the location, of such office or agency. The Company
initially designates the Corporate Trust Office of the Purchase Contract Agent in New York City, as
such office of the Company. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Purchase Contract Agent with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the foregoing
Corporate Trust Office in New York City and the Company hereby appoints the Purchase Contract Agent
as its agent to receive all such presentations, surrenders, notices and demands.

The Company may also from time to time designate one or more other offices or agencies where
Certificates may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any
manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, New York City, New York for such purposes. The Company will give prompt written notice
to the Purchase Contract Agent of any such designation or rescission and of any change in the
location of any such other office or agency. The Company hereby designates as the place of payment
for the Units the Corporate Trust Office of the Purchase Contract Agent in the New York City and
appoints the Purchase Contract Agent at its Corporate Trust Office in New York City, as paying
agent in such city.

Section 10.03. Company to Reserve Common Stock. The Company shall at all times prior to the
Purchase Contract Settlement Date reserve and keep available, free from preemptive rights, out of
its authorized but unissued Common Stock the full number of shares of Common Stock issuable against
tender of payment in respect of all Purchase Contracts constituting a part of the Units evidenced
by Outstanding Certificates.

Section 10.04. Covenants as to Common Stock; Listing. (a) The Company covenants that all
shares of Common Stock which may be issued against tender of payment in respect of any Purchase
Contract constituting a part of the Outstanding Units will, upon issuance, be duly authorized,
validly issued, fully paid and nonassessable.

 

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(b) The Company further covenants that, if at any time the Common Stock shall be listed on the
NYSE or any other national securities exchange or automated quotation system, the Company will, if
permitted by the rules of such exchange or automated quotation system, list and keep listed, so
long as the Common Stock shall be so listed on such exchange or automated quotation system, all
Common Stock issuable upon settlement of Purchase Contracts; provided, however, that, if the rules
of such exchange or automated quotation system permit the Company to defer the listing of such
Common Stock until the date on which any Purchase Contract is first settled in accordance with the
provisions of this Agreement, the Company covenants to list such Common Stock issuable upon
settlement of the Purchase Contracts in accordance with the requirements of such exchange or
automated quotation system no later than at such time.

(c) The Company shall use its reasonable best efforts to effect the listing of the Corporate
Units and the underlying Common Stock on the NYSE within 30 days of the date of the initial
issuance of the Corporate Units.

Section 10.05. Statements of Officers of the Company as to Default. The Company will deliver
to the Purchase Contract Agent, within 120 days after the end of each fiscal year of the Company
(which as of the date hereof is December 31) ending after the date hereof, an Officers’ Certificate
stating whether or not to the knowledge of the signers thereof the Company is in default in the
performance and observance of any of the terms, provisions and conditions of this Agreement, and if
the Company shall be in default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.

Section 10.06. ERISA. Each Holder, by acceptance of the Corporate Units, Treasury Units, any
shares of Common Stock issuable upon settlement of the Purchase Contract or Notes will be deemed to
have represented and warranted that from and including the date of its acquisition of any such
securities through and including the date of the satisfaction of the obligation under the Purchase
Contract and/or the disposition of any such securities either (i) no portion of the assets used by
such Holder to acquire or hold the Units, shares of Common Stock issuable upon settlement of the
Purchase Contract or Notes (or by any Beneficial Owner with a Book-Entry Interest in such Units
that is a Plan or that used assets of a Plan to acquire such Book-Entry Interest) constitutes
assets of any such Plan or (ii) its acquisition, holding and disposition of the Corporate Units,
Treasury Units, shares of Common Stock issuable upon settlement of the Purchase Contract or Notes,
as applicable, will not result in a non-exempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code or a violation of any applicable Similar Laws.

 

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Section 10.07. Tax Treatment. The Company covenants and agrees, and by acceptance of a Unit
or beneficial ownership of a Unit, each Holder and beneficial owner will be deemed to have agreed
for U.S. federal, state and local income tax purposes (i) to treat each beneficial owner of a
Corporate Unit or a
Treasury Unit as the owner of the applicable interests in the Collateral, including the Notes
underlying the Applicable Ownership Interests in Notes, the Applicable Ownership Interests in the
Treasury Portfolio or the Treasury Securities, as the case may be, (ii) to treat the Notes as
indebtedness for all tax purposes, (iii) to allocate, as of the date hereof, 100% of a Holder’s
purchase price for a Corporate Unit to the Applicable Ownership Interests in Notes and 0% to each
Purchase Contract, which will establish each Holder’s initial tax basis in each Purchase Contract
as $0.00 and each Holder’s initial tax basis in each Applicable Ownership Interest in Notes as
$50.00, and (iv) in all events, not to take any position for U.S. federal, state or local income
tax purposes that is inconsistent with or contrary to the above covenants.

Section 10.08. Remarketing Agreement. On or prior to the date that is 30 days prior to
January 30, 2014, the Company shall have entered into, and shall have caused the Notes Issuer,
Purchase Contract Agent and the Remarketing Agent(s) to have entered into, the Remarketing
Agreement.

ARTICLE 11

Pledge

Section 11.01. Pledge. Each Holder, acting through the Purchase Contract Agent as such
Holder’s attorney-in-fact, and the Purchase Contract Agent, acting solely as such attorney-in-fact,
hereby pledges and grants to the Collateral Agent, as agent of and for the benefit of the Company,
a continuing first priority perfected security interest in and to, and a lien upon and right of
set-off against, all of such Person’s right, title and interest in and to the Collateral, whether
now existing or hereafter arising, to secure the prompt and complete payment and performance when
due (whether at stated maturity, by acceleration or otherwise) of the Obligations. 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 or other applicable law.

Section 11.02. Termination. As to each Holder, the Pledge created hereby shall terminate
upon the payment and performance in full of such Holder’s Obligations. Promptly after such
termination, the Collateral Agent shall instruct the Securities Intermediary to Transfer such
portion of the Collateral attributable to such Holder to the Purchase Contract Agent for
distribution to such Holder, free and clear of the Pledge created hereby.

 

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ARTICLE 12

Administration of Collateral

Section 12.01. Initial Deposit of Notes. (a) Prior to or concurrently with the execution
and delivery of this Agreement, the Purchase Contract Agent, on behalf of the initial Holders of
the Corporate Units, shall Transfer to the Securities Intermediary, for credit to the Collateral
Account, the Applicable Ownership Interests in Notes and the Notes underlying such Applicable
Ownership Interests in Notes or security entitlements relating thereto and the Securities
Intermediary shall indicate by book-entry that a securities entitlement with respect to such
Applicable Ownership Interests in Notes (and the Notes underlying such Applicable Ownership
Interests in Notes) has been credited to the Collateral Account.

(b) The Collateral Agent may, at any time or from time to time, in its sole discretion, cause
any or all securities or other property underlying any financial assets credited to the Collateral
Account to be registered in the name of the Securities Intermediary, the Collateral Agent or their
respective nominees; provided, however, that unless any Event of Default shall have occurred and be
continuing, the Collateral Agent agrees not to cause any Notes to be so re-registered.

Section 12.02. Establishment of Collateral Account. The Securities Intermediary hereby
confirms that:

(a) the Securities Intermediary has established the Collateral Account;

(b) the Collateral Account is a securities account;

(c) subject to the terms of this Agreement, the Securities Intermediary shall identify in its
records the Collateral Agent as the entitlement holder entitled to exercise the rights that
comprise any financial asset credited to the Collateral Account;

(d) all property delivered to the Securities Intermediary pursuant to this Agreement,
including any Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i)
of the definition of Applicable Ownership Interest in the Treasury Portfolio) or Treasury
Securities and the Permitted Investments, will be credited promptly to the Collateral Account; and

(e) all securities or other property underlying any financial assets credited to the
Collateral Account shall be (i) registered in the name of the Purchase Contract Agent and indorsed
to the Securities Intermediary or in blank, (ii) registered in the name of the Securities
Intermediary or (iii) credited to another securities account maintained in the name of the
Securities Intermediary.

 

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In no case will any financial asset credited to the Collateral Account be registered in the
name of the Purchase Contract Agent (in its capacity as such) or any Holder or specially indorsed
to the Purchase Contract Agent (in its capacity as such) or any Holder, unless such financial asset
has been further indorsed to the Securities Intermediary or in blank.

Section 12.03. 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 12.04. Sole Control by Collateral Agent. Except as provided in Section 15.01, 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, and
comply with entitlement orders, with respect to the Collateral Account or any financial asset
credited thereto 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. Except as otherwise
permitted under this Agreement, 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 12.05. Jurisdiction. 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 internal laws of the State of New York. Regardless of
any provision in any other agreement, the Securities Intermediary’s jurisdiction is the State of
New York for purposes of the UCC.

Section 12.06. 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 (without having conducted any investigation) does not know of any claim to, or
interest in, the Collateral Account or in any financial asset credited thereto. If the Securities
Intermediary receives written notice at its corporate trust office in New York City or if an
officer thereof assigned to such office has actual knowledge that 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 as soon as practicable notify the Collateral Agent and
the Purchase Contract Agent.

Section 12.07. Investment and Release. All proceeds of financial assets from time to time
credited to 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 12.08. Statements and Confirmations. The Securities Intermediary will as soon as
practicable 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 12.09. Tax Allocations. The Collateral Agent shall report all items of income, gain,
expense and loss recognized in the Collateral Account, to the extent such reporting is required by
law, to the Internal Revenue Service authorities in the manner required by law. Neither the
Securities Intermediary nor the Purchase Contract Agent shall have any tax reporting duties in
respect of the Collateral Account.

Section 12.10. 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 12.11. Powers Coupled with an Interest. The rights and powers granted in this
Agreement 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 Purchase Contract and Pledge Agreement shall continue in
effect until the termination of the Pledge.

Section 12.12. Waiver of Lien; Waiver of Set-off. The Securities Intermediary waives any
security interest, lien or right to make deductions or set-offs that it may now have or hereafter
acquire in or with respect to the Collateral Account, any financial asset credited thereto or any
security entitlement in respect thereof. Neither the financial assets credited to the Collateral
Account nor the security entitlements in respect thereof will be subject to deduction, set-off,
banker’s lien, or any other right in favor of any person other than the Company.

 

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ARTICLE 13

Rights and Remedies of the Collateral Agent

Section 13.01. Rights and Remedies of the Collateral Agent. (a) In addition to the rights
and remedies set forth herein or otherwise available at law or in equity, after a collateral event
of default (as specified in Section 13.01(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 Notes underlying Pledged Applicable Ownership Interests in Notes, the Pledged
Treasury Securities and/or the Pledged Applicable Ownership Interests in the Treasury Portfolio in
full satisfaction of the Holders’ obligations under the Purchase Contracts and the Purchase
Contract Agreement and/or (2) sale of the Notes underlying Pledged Applicable Ownership Interests
in Notes, the Pledged Treasury Securities or the Pledged Applicable Ownership Interests in the
Treasury Portfolio in one or more public or private sales.

(b) Without limiting any rights or powers otherwise granted by this Agreement to the
Collateral Agent or under applicable law, in the event the Collateral Agent is unable to make
payments to the Company on account of Proceeds of (i) the Notes underlying Pledged Applicable
Ownership Interests in Notes (other than any interest payments thereon), (ii) Pledged Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of
Applicable Ownership Interest in the Treasury Portfolio), or (iii) the Pledged Treasury Securities
as provided in this Agreement in satisfaction of the Obligations of the Holder of the Units of
which such Notes underlying Pledged Applicable Ownership Interests in Notes, such Pledged
Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of Applicable Ownership Interest in the Treasury Portfolio) or such Pledged Treasury
Securities are a part under the related Purchase Contracts, the inability to make such payments
shall constitute a “collateral event of default” hereunder and the Collateral Agent shall, for the
benefit of the Company, have and may exercise, with reference to such Notes underlying Pledged
Applicable Ownership Interests in Notes, Pledged Treasury Securities or Pledged Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of
Applicable Ownership Interest in the Treasury Portfolio), as applicable, 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 applicable law.

(c) Without limiting any rights or powers otherwise granted by this Agreement to the
Collateral Agent or under applicable law, the Collateral Agent is hereby irrevocably authorized to
receive, collect and apply to the satisfaction of the Obligations all payments with respect to (i)
the Notes underlying Pledged Applicable Ownership Interests in Notes (other than any interest
payments thereon), (ii) the Pledged Treasury Securities and (iii) the Pledged Applicable Ownership
Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of Applicable Ownership Interest in the Treasury Portfolio), subject, in each case,
to the provisions of this Agreement, and as otherwise provided herein.

 

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(d) The Purchase Contract Agent and each Holder agrees that, from time to time, upon the
written request of the Collateral Agent, the Purchase Contract Agent, on behalf of 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.

ARTICLE 14

Representations and Warranties to Collateral Agent; Holder

Covenants

Section 14.01. 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 and the Company (with respect to such
Holder’s interest in the Collateral), which representations and warranties shall be deemed repeated
on each day a Holder effects a Transfer of Collateral, that:

(a) such Holder has the power to grant a security interest in and lien on the Collateral;

(b) 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 Collateral Agent 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 Article
11;

(c) 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 Article 12
hereof); and

 

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(d) 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 Article 11 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 14.02. Covenants. The Purchase Contract Agent and 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 and the Company that for so long as the Collateral remains
subject to the Pledge:

(a) 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

(b) 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 a Transfer of the Units.

ARTICLE 15

The Collateral Agent, the Custodial Agent and the Securities

Intermediary

Section 15.01. Appointment, Powers and Immunities. The Collateral Agent, the Custodial Agent
and the Securities Intermediary shall act solely as agent for the Company hereunder, shall not
assume any obligation or relationship of agency or trust for or with any of the Holders, except for
the obligations owed by a pledgee of property to the owner of the property under this Agreement and
applicable law, and shall have such powers as are specifically vested in the Collateral Agent, the
Custodial Agent and the Securities Intermediary, as the case may be, by the terms of this
Agreement. The Collateral Agent, the Custodial Agent and Securities Intermediary shall:

(a) 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, the Custodial Agent or the Securities Intermediary, nor shall the Collateral Agent, the
Custodial Agent or the Securities Intermediary be bound by the provisions of any agreement by any
party hereto (to which the Collateral Agent, the Custodian Agent or the Securities Intermediary, as
the case may be, is not a party) beyond the specific terms hereof;

 

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(b) 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 or the
Units, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement (other than as against the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be), the Units, any Collateral 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, the Custodial Agent or Securities Intermediary, as the case may be) 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;

(c) not be required to initiate or conduct any litigation or collection proceedings hereunder
(except pursuant to directions furnished under Section 15.02 hereof, subject to Section 15.08
hereof);

(d) 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

(e) 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, the
Custodial Agent and the Securities Intermediary shall take all reasonable action in connection with
the safekeeping and preservation of the Collateral hereunder as determined by industry standards.

No provision of this Agreement shall require the Collateral Agent, the Custodial Agent or the
Securities Intermediary to expend or risk its own funds or otherwise incur any liability in the
performance of any of its duties hereunder. In no event shall the Collateral Agent, the Custodial
Agent or the Securities Intermediary be liable for any amount in excess of the Value of the
Collateral.

Section 15.02. Instructions of the Company. The Company shall have the right, by one or more
written instruments 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 or
involve the Collateral Agent in personal liability and (ii) the Collateral Agent shall be
indemnified to its satisfaction as provided herein. Nothing contained in this Section 15.02 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. None of the Collateral Agent, the
Custodial Agent or the Securities Intermediary has any obligation or responsibility to file UCC
financing or continuation statements.

 

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Section 15.03. Reliance by Collateral Agent, Custodial Agent and Securities Intermediary.
Each of the Securities Intermediary, the Custodial Agent and the Collateral Agent shall be entitled
to rely conclusively upon any certification, order, judgment, opinion, notice or other written
communication (including, without limitation, any thereof by e-mail or similar electronic means,
telecopy or facsimile) believed by it in good faith to be genuine 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 consult with and conclusively rely upon advice,
opinions and statements of legal counsel and other experts selected by the Collateral Agent, the
Custodial Agent or the Securities Intermediary, as the case may be. As to any matters not
expressly provided for by this Agreement, the Collateral Agent, the Custodial 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.

Section 15.04. Certain Rights. (a) Whenever in the administration of the provisions of this
Agreement the Collateral Agent, the Custodial Agent or the Securities Intermediary shall deem it
necessary or desirable that a matter be proved or established prior to taking, or omitting to take,
or suffering any action hereunder, or suffering to exist any state of events, such matter (unless
other evidence in respect thereof be herein specifically prescribed) may, in the absence of bad
faith on the part of the Collateral Agent, the Custodial Agent or the Securities Intermediary, be
deemed to be conclusively proved and established by an Officers’ Certificate delivered to the
Collateral Agent, the Custodial Agent or the Securities Intermediary and such certificate, in the
absence of bad faith on the part of the Collateral Agent, the Custodial Agent or the Securities
Intermediary, shall be full warrant to the Collateral Agent, the Custodial Agent or the Securities
Intermediary for any action taken, suffered or omitted by it under the provisions of this Agreement
in reliance thereon.

(b) The Collateral Agent, the Custodial Agent or the Securities Intermediary shall not be
bound to make any investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, entitlement order, approval or
other paper or document.

Section 15.05. Merger, Conversion, Consolidation or Succession to Business. Any Person or
national association into which the Collateral Agent, the Custodial Agent or the Securities
Intermediary may be merged or converted or with which it may be consolidated, or any Person or
national association resulting from any merger, conversion or consolidation to which the Collateral
Agent, the Custodial Agent or the Securities Intermediary shall be a party, or any Person or
national association succeeding to all or substantially all of the corporate trust
business of the Collateral Agent, the Custodial Agent or the Securities Intermediary shall be
the successor of the Collateral Agent, the Custodial Agent or the Securities Intermediary hereunder
without the execution or filing of any paper with any party hereto or any further act on the part
of any of the parties hereto except where an instrument of transfer or assignment is required by
law to effect such succession, anything herein to the contrary notwithstanding.

 

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Section 15.06. Rights in Other Capacities. The Collateral Agent, the Custodial 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 Purchase Contract Agent, any other Person
interested herein and any Holder (and any of their respective subsidiaries or affiliates) as if it
were not acting as the Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, and the Collateral Agent, the Custodial Agent, the Securities Intermediary and their
affiliates may accept fees and other consideration from the Purchase Contract Agent and any Holder
without having to account for the same to the Company; provided that each of the Collateral Agent,
the Custodial Agent and the Securities Intermediary 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 15.07. Non-reliance on the Collateral Agent, Custodial Agent And Securities
Intermediary. None of the Collateral Agent, the Custodial Agent and the Securities Intermediary
shall be required to keep itself informed as to the performance or observance by the Purchase
Contract Agent or any Holder of this Agreement, the Units 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. None of the Collateral Agent, the Custodial Agent or 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 (or any of their respective affiliates) that may come into the possession of the Collateral
Agent, the Custodial Agent or the Securities Intermediary or any of their respective affiliates.

Section 15.08. Compensation and Indemnity. The Company agrees to:

(a) pay the Collateral Agent, the Custodial Agent and the Securities Intermediary from time to
time such compensation as shall be agreed in writing between the Company and the Collateral Agent,
the Custodial Agent or the Securities Intermediary, as the case may be, for all services rendered
by them hereunder;

 

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(b) indemnify and hold harmless the Collateral Agent, the Custodial Agent, the Securities
Intermediary and each of their respective directors, officers,
agents and employees (collectively, the “Pledge Indemnitees”), from and against any and all
claims, liabilities, losses, damages, fines, penalties and expenses (including reasonable fees and
expenses of counsel) (collectively, “Losses” and individually, a “Loss”) that may be imposed on,
incurred by, or asserted against, the Pledge Indemnitees or any of them for following any
instructions or other directions upon which any of the Collateral Agent, the Custodial Agent or the
Securities Intermediary is entitled to rely pursuant to the terms of this Agreement; and

(c) in addition to and not in limitation of paragraph (b) of this Section 15.08, indemnify and
hold the Pledge Indemnitees and each of them harmless from and against any and all Losses that may
be imposed on, incurred by or asserted against, the Pledge Indemnitees or any of them in connection
with or arising out of the Collateral Agent’s, the Custodial Agent’s or the Securities
Intermediary’s acceptance or performance of its powers and duties under this Agreement, provided
the Collateral Agent, the Custodial Agent or the Securities Intermediary has not acted with gross
negligence or engaged in willful misconduct or bad faith with respect to the specific Loss against
which indemnification is sought, including the Pledge Indemnitee’s reasonable costs and expenses of
defending themselves against any claim (whether asserted by the Company, a Holder or any other
Person) or liability in connection with the exercise or performance of any of the Collateral
Agent’s, the Custodial Agent’s or Securities Intermediary’s powers or duties hereunder or
thereunder or of enforcing the provisions of this Section and Section 15.14.

Without prejudice to its rights hereunder or under applicable law, when any of the Collateral
Agent, Custodial Agent or Securities Intermediary incurs expenses after a Termination Event occurs,
or renders services after a Termination Event occurs, such expenses and compensation are intended
to constitute expenses of administration under the Bankruptcy Code or any applicable state
bankruptcy, insolvency or other similar law.

The provisions of this Section and Section 15.14 shall survive the resignation or removal of
the Collateral Agent, the Custodial Agent or the Securities Intermediary and the termination of
this Agreement.

Section 15.09. Failure to Act. In the event that, in the good faith belief of the Collateral
Agent, the Custodial Agent or the Securities Intermediary, an ambiguity in the provisions of this
Agreement arises or any actual dispute between or conflicting claims by or among the parties hereto
or any other Person with respect to any funds or property deposited hereunder has been asserted in
writing, then at its sole option, each of the Collateral Agent, the Custodial Agent and the
Securities Intermediary shall be entitled, after prompt notice to the Company and the Purchase
Contract Agent, 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, the Custodial Agent and the Securities Intermediary, as the case may be, 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, the Custodial Agent and the
Securities Intermediary shall be entitled to refuse to act until either:

 

119

 

(a) 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, the Custodial Agent or the Securities
Intermediary; or

(b) the Collateral Agent, the Custodial Agent or the Securities Intermediary shall have
received security or an indemnity satisfactory to it sufficient to hold 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, the Custodial 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, the Custodial Agent or the Securities Intermediary may deem necessary. Notwithstanding
anything contained herein to the contrary, none of the Collateral Agent, the Custodial Agent or 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 personal liability.

Section 15.10. Resignation of Collateral Agent, the Custodial Agent and the Securities
Intermediary. (a) Subject to the appointment and acceptance of a successor Collateral Agent,
Custodial Agent or Securities Intermediary as provided below:

(i) the Collateral Agent, the Custodial Agent or 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;

(ii) the Collateral Agent, the Custodial Agent or the Securities Intermediary may be
removed at any time by the Company; and

(iii) if the Collateral Agent, the Custodial Agent or 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 Collateral Agent, the
Custodial Agent and the Securities Intermediary may be removed by the Purchase Contract
Agent, acting at the direction of Holders of a majority of the Units.

 

120

 

The Purchase Contract Agent shall promptly notify the Company upon the transmission of notice
as contemplated by clause (iii) of Section 15.10(a) and any removal of the Collateral Agent, the
Custodial Agent or the Securities Intermediary pursuant to clause (iii) of this Section 15.10(a).
Upon any such resignation or removal under this Section 15.10(a), the Company shall have the right
to appoint a successor Collateral Agent, Custodial Agent or Securities Intermediary, as the case
may be, which shall not be an Affiliate of the Purchase Contract Agent. If no successor Collateral
Agent, Custodial Agent or Securities Intermediary shall have been so appointed and shall have
accepted such appointment within 45 days after the retiring Collateral Agent’s, Custodial Agent’s
or Securities Intermediary’s giving of notice of resignation or the Company’s or the Purchase
Contract Agent’s giving notice of such removal, then the retiring or removed Collateral Agent,
Custodial Agent or Securities Intermediary may petition any court of competent jurisdiction, at the
expense of the Company, for the appointment of a successor Collateral Agent, Custodial Agent or
Securities Intermediary. The Collateral Agent, the Custodial Agent and the Securities Intermediary
shall each be a bank or a national banking association which has an office (or an agency office) in
New York City with a combined capital and surplus of at least $50,000,000. Upon the acceptance of
any appointment as Collateral Agent, Custodial Agent or Securities Intermediary hereunder by a
successor Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be, such
successor Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be, shall
thereupon succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be, and the
retiring Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be, shall
take all appropriate action, subject to payment of any amounts then due and payable to it
hereunder, to transfer any money and property held by it hereunder (including the Collateral) to
such successor. The retiring Collateral Agent, Custodial Agent or Securities Intermediary shall,
upon such succession, be discharged from its duties and obligations as Collateral Agent, Custodial
Agent or Securities Intermediary hereunder. After any retiring Collateral Agent’s, Custodial
Agent’s or Securities Intermediary’s resignation hereunder as Collateral Agent, Custodial Agent or
Securities Intermediary, the provisions of this Article 15 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, the Custodial Agent or the Securities Intermediary. Any resignation or removal of the
Collateral Agent, the Custodial Agent or the Securities Intermediary hereunder, at a time when such
Person is also acting as the Collateral Agent, the Custodial Agent or the Securities Intermediary,
as the case may be, shall be deemed for all purposes of this Agreement as the simultaneous
resignation or removal of the Collateral Agent, the Securities Intermediary or the Custodial Agent,
as the case may be.

 

121

 

(b) If The Bank of New York Mellon is serving as the Collateral Agent hereunder and also as
the Purchase Contract Agent hereunder at any time that an
Event of Default or a collateral event of default is continuing hereunder, The Bank of New
York Mellon will resign as the Collateral Agent, Custodial Agent and the Securities Intermediary
effective as of the appointment of one or more successors in accordance with this Article 15, but
continue to act as the Purchase Contract Agent. A successor Collateral Agent, Custodial Agent and
Securities Intermediary will be appointed in accordance with the terms of this Article 15.

Section 15.11. 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
15.11 shall be subject to prior written consent of the Company, which consent shall not be
unreasonably withheld.

Section 15.12. Survival. The provisions of this Article 15 shall survive termination of this
Agreement and the resignation or removal of the Collateral Agent, the Custodial Agent or the
Securities Intermediary.

Section 15.13. Exculpation. Anything contained in this Agreement to the contrary
notwithstanding, in no event shall the Collateral Agent, the Custodial Agent or the Securities
Intermediary or their officers, directors, employees or agents be liable under this Agreement for
indirect, special, punitive, or consequential loss or damage of any kind whatsoever, including, but
not limited to, lost profits, whether or not the likelihood of such loss or damage was known to the
Collateral Agent, the Custodial Agent or the Securities Intermediary, or any of them and regardless
of the form of action.

Section 15.14. Expenses, Etc. The Company agrees to reimburse the Collateral Agent, the
Custodial Agent and the Securities Intermediary for:

(a) all reasonable costs, fees and expenses of the Collateral Agent, the Custodial Agent and
the Securities Intermediary (including, without limitation, the reasonable fees and expenses of
counsel to the Collateral Agent, the Custodial Agent and the Securities Intermediary), in
connection with (i) the negotiation, preparation, execution and delivery or performance of this
Agreement (excluding taxes that are based on or measured by income in whole or in part (including
franchise taxes)) and (ii) any modification, supplement or waiver of any of the terms of this
Agreement;

(b) all reasonable costs, fees and expenses of the Collateral Agent, the Custodial 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 to satisfy its obligations under the Purchase Contracts forming a part of
the Units and (ii) the enforcement of this Section 15.14;

 

122

 

(c) 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;

(d) all reasonable fees and expenses of any agent or advisor appointed by the Collateral Agent
and consented to by the Company under Section 15.11 of this Agreement; and

(e) any other out-of-pocket costs and expenses (excluding taxes that are based on or measured
by income in whole or in part (including franchise taxes)) reasonably incurred by the Collateral
Agent, the Custodial Agent and the Securities Intermediary in connection with the performance of
their duties hereunder.

Section 15.15. Force Majeure. In no event shall any of the Collateral Agent, Custodial Agent
and Securities Intermediary be responsible or liable for any failure or delay in the performance of
its obligations under this Agreement arising out of or caused directly or indirectly, by
circumstances beyond its control, including, without limitation, acts of God; earthquake; fires;
floods; wars; civil or military disturbances; terrorist acts; sabotage; epidemics; riots;
interruptions, loss or malfunctions of utilities; or acts of civil or military authority or
governmental actions; it being understood that the Collateral Agent, Custodial Agent and Securities
Intermediary shall use reasonable efforts which are consistent with accepted practices in the
banking industry to resume performance as soon as practicable under such circumstances.

ARTICLE 16

Miscellaneous

Section 16.01. Security Interest Absolute. All rights of the Collateral Agent and security
interests hereunder, and all obligations of the Holders from time to time hereunder pursuant to the
Pledge, shall be absolute and unconditional irrespective of:

(a) any lack of validity or enforceability of any provision of the Purchase Contracts or the
Units or any other agreement or instrument relating thereto;

(b) 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 Units 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

 

123

 

(c) any other circumstance which might otherwise constitute a defense available to, or
discharge of, a borrower, a guarantor or a pledgor.

Section 16.02. Notice of Termination Event. Upon the occurrence of a Termination Event, the
Company shall deliver written notice to the Purchase Contract Agent, 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 Termination Event has occurred.

[SIGNATURES ON THE FOLLOWING PAGE]

 

124

 

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	 	THE BANK OF NEW YORK MELLON,
	 

	 	 	 	as Purchase Contract Agent and as
attorney-in-fact of the Holders from
time to time of the Units	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ James E. Abel
	 	By:
	 	/s/ Teisha Wright	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: James E. Abel
	 	 	 	Name: Teisha Wright	 	 	 	 
	 

	 	Title: Senior Vice
President-Finance and
Treasurer
	 	 	 	Title: Senior Associate	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address for Notices:	 	Address for Notices:
	Two North Ninth Street	 	The Bank of New York Mellon
	Allentown, PA 18101-1179	 	101 Barclay Street,
	Telecopier No.: (610) 774-5151	 	Floor 4E
	Attention: Treasurer	 	New York, New York 10286
	 	 	 	 	Attention: Global Structured Finance

 

 

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Collateral Agent, Custodial Agent

and Securities Intermediary

 	 
	 	By:  	/s/ Teisha Wright
 	 
	 	 	Name:  	Teisha Wright 	 
	 	 	Title:  	Senior Associate 	 

Address for Notices:

The Bank of New York Mellon

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

 

 

 

EXHIBIT A

(FORM OF FACE OF CORPORATE UNITS CERTIFICATE)

[For inclusion in Global Certificate only — THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN
THE MEANING OF THE PURCHASE CONTRACT AND PLEDGE AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED
IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
“DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS CERTIFICATE IS
EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AND PLEDGE AGREEMENT
AND NO TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.]

 

A-1

 

			
	No.
	 	CUSIP No. 69351T 114
	Number of Corporate Units:
	 	ISIN No. US69351T1144

PPL CORPORATION

Corporate Units

This Corporate Units Certificate certifies that is the registered Holder of the
number of Corporate Units set forth above [For inclusion in Global Certificates only — or such
other number of Corporate Units reflected in the Schedule of Increases or Decreases in Global
Certificate attached hereto, which number, taken together with the number of all other outstanding
Corporate Units and the number of all outstanding Treasury Units, shall not exceed 19,550,000
Corporate Units]. Each Corporate Unit consists of (i) the rights and obligations of the Holder
under one Purchase Contract with the Company pursuant to which (A) the Holder will agree to
purchase from the Company, and the Company will agree to sell to the Holder, not later than the
Purchase Contract Settlement Date, for the Stated Amount in cash, a number of shares of Common
Stock equal to the Settlement Rate, subject to anti-dilution adjustments and (B) the Company will
pay the Holder quarterly Contract Adjustment Payments, subject to the Company’s right to defer such
Contract Adjustment Payments and (ii) either (A) an Applicable Ownership Interest in Notes or (B)
upon the occurrence of a Successful Optional Remarketing during the Optional Remarketing Period,
the Applicable Ownership Interest in the Treasury Portfolio, subject to the pledge of the
Applicable Ownership Interest in the Treasury Portfolio (as specified in clause (i) of the
definition of Applicable Ownership Interest in the Treasury Portfolio) by such Holder pursuant to
the Purchase Contract and Pledge Agreement.

All capitalized terms used herein that are defined in the Purchase Contract and Pledge
Agreement (as defined on the reverse hereof) have the meaning set forth therein.

In the event of any inconsistency between the provisions of this Corporate Units Certificate
and the provisions of the Purchase Contract and Pledge Agreement (as defined below), the provisions
of the Purchase Contract and Pledge Agreement shall govern and control.

Pursuant to the Purchase Contract and Pledge Agreement, the Applicable Ownership Interest in
Notes or the Applicable Ownership Interest in the Treasury Portfolio (as specified in clause (i) of
the definition of Applicable Ownership Interest in the Treasury Portfolio), as the case may be,
constituting part of each Corporate Unit evidenced hereby have been pledged to the Collateral
Agent, for the benefit of the Company, to secure the obligations of the Holder under the Purchase
Contract comprising part of such Corporate Unit.

All payments of the principal amount with respect to the Notes underlying the Pledged
Applicable Ownership Interests in Notes or all payments with respect to the Applicable Ownership
Interests in the Treasury Portfolio (as specified in clause (i) of the definition of Applicable
Ownership Interest in the Treasury Portfolio), as the case may be, or payments of interest on the
Pledged Applicable Ownership Interests in Notes or distributions with respect to the Applicable
Ownership Interests in the Treasury Portfolio (as specified

 

A-1

 

in clause (ii) of the definition of
Applicable Ownership Interests in the Treasury Portfolio), as the case may be,
 constituting part of the Corporate Units shall be paid on the dates and in the manner set
forth in the Purchase Contract and Pledge Agreement. Interest on the Notes underlying the
Applicable Ownership Interests in Notes or distributions on the Applicable Ownership Interests in
the Treasury Portfolio (as specified in clause (ii) of the definition of Applicable Ownership
Interests in the Treasury Portfolio), as the case may be, forming part of the Corporate Units
evidenced hereby, which are payable on each Payment Date, shall, subject to receipt thereof by the
Purchase Contract Agent, be paid to the Person in whose name this Corporate Units Certificate (or a
Predecessor Corporate Units Certificate) is registered at the close of business on the Record Date
for such Payment Date.

Each Purchase Contract evidenced hereby obligates the Holder of this Corporate Units
Certificate to purchase, and the Company to sell, on the Purchase Contract Settlement Date, at a
Purchase Price equal to the Stated Amount, a number of shares of Common Stock, equal to the
Settlement Rate, unless on or prior to the Purchase Contract Settlement Date there shall have
occurred a Termination Event, an Early Settlement or a Fundamental Change Early Settlement with
respect to such Purchase Contract, all as provided in the Purchase Contract and Pledge Agreement.
The Purchase Price for the shares of Common Stock purchased pursuant to each Purchase Contract
evidenced hereby, if not paid earlier, shall be paid on the Purchase Contract Settlement Date by
application of payment received in the Final Remarketing of the Notes underlying the Pledged
Applicable Ownership Interests in Notes equal to the principal amount thereof or the proceeds of
the Pledged Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of
the definition of Applicable Ownership Interest in the Treasury Portfolio), as the case may be,
pledged to secure the Holder’s obligations under such Purchase Contract.

Distributions on the Applicable Ownership Interests in Notes and distributions on the
Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (ii) of the
definition of Applicable Ownership Interests in the Treasury Portfolio) will be payable at the
Corporate Trust Office of the Purchase Contract Agent in New York City, which is located at 101
Barclay Street, New York, New York 10286, except that all payments with respect to Global
Certificates will be made by wire transfer of immediately available funds to the Depositary.

Each Purchase Contract evidenced hereby obligates each Holder and beneficial owner to agree,
for U.S. federal, state and local income tax purposes (i) to treat each beneficial owner of a
Corporate Unit as the owner of the applicable interests in the Collateral, including the Notes
underlying the Applicable Ownership Interests in Notes or the Applicable Ownership Interests in the
Treasury Portfolio, as the case may be, (ii) to treat the Notes as indebtedness for all tax
purposes, (iii) to allocate, as of the date hereof, 100% of a Holder’s purchase price for a
Corporate Unit to the Applicable Ownership Interests in Notes and 0% to each Purchase Contract,
which will establish each Holder’s initial tax basis in each Purchase Contract as $0.00 and each
Holder’s initial tax basis in each Applicable Ownership Interest in Notes as $50.00, and (iv) in
all events, not to take any position for U.S. federal, state or local income tax purposes that is
inconsistent with or contrary to the above covenants.

 

A-2

 

The Company shall pay, on each Contract Adjustment Payment Date, in respect of each Purchase
Contract forming part of a Corporate Unit evidenced hereby, an amount (the “Contract Adjustment
Payments”) equal to 4.43% per year of the Stated Amount, computed on the basis

 of a 360-day year consisting of twelve 30-day months. Such Contract Adjustment Payments shall
be payable to the Person in whose name this Corporate Units Certificate is registered at the close
of business on the Record Date for such Contract Adjustment Payment Date. The Company may, at its
option, defer such Contract Adjustment Payments as described in the Purchase Contract and Pledge
Agreement. The Contract Adjustment Payments are unsecured and will rank subordinate and junior in
right of payment to all of the Company’s existing and future Senior Indebtedness.

Interest on the Notes or distributions on the Applicable Ownership Interest in the Treasury
Portfolio, as the case may be, and the Contract Adjustment Payments will be payable at the office
of the Purchase Contract Agent in the Borough of Manhattan, New York City. If the book-entry system
for the Corporate Units has been terminated, the Contract Adjustment Payments will be payable, at
the option of the Company, by check mailed to the address of the Person entitled thereto at such
Person’s address as it appears on the Security Register, or by wire transfer to the account
designated by such Person by a prior written notice to the Purchase Contract Agent.

Reference is hereby made to the further provisions set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place.

Unless the certificate of authentication hereon has been executed by the Purchase Contract
Agent by manual signature, this Corporate Units Certificate shall not be entitled to any benefit
under the Purchase Contract and Pledge Agreement or be valid or obligatory for any purpose.

 

A-3

 

IN WITNESS WHEREOF, the Company and the Holder specified above have caused this instrument to
be duly executed.

	 	 	 	 	 	 	 
	 	 	PPL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	HOLDER SPECIFIED ABOVE (as to obligations of such
Holder under the Purchase Contracts)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	THE BANK OF NEW YORK MELLON, not individually
but solely as attorney-in-fact of such Holder	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

CERTIFICATE OF AUTHENTICATION

OF PURCHASE CONTRACT AGENT

This is one of the Corporate Units Certificates referred to in the within mentioned Purchase
Contract and Pledge Agreement.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

as Purchase Contract Agent

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Dated:

 

A-4

 

(REVERSE OF CORPORATE UNITS CERTIFICATE)

Each Purchase Contract evidenced hereby is governed by a Purchase Contract and Pledge
Agreement, dated as of April 15, 2011 (as may be supplemented from time to time, the “Purchase
Contract and Pledge Agreement”), between the Company and The Bank of New York Mellon, as Collateral
Agent, as Custodial Agent, as Securities Intermediary, as Purchase Contract Agent and as
attorney-in-fact for the Holders of Corporate Units and Treasury Units from time to time, to which
Purchase Contract and Pledge Agreement and supplemental agreements thereto reference is hereby made
for a description of the respective rights, limitations of rights, obligations, duties and
immunities thereunder of the Purchase Contract Agent, the Company, and the Holders and of the terms
upon which the Corporate Units Certificates are, and are to be, executed and delivered.

Each Purchase Contract evidenced hereby obligates the Holder of this Corporate Units
Certificate to purchase, and the Company to sell, on the Purchase Contract Settlement Date at a
price equal to the Stated Amount, a number of shares of Common Stock equal to the Settlement Rate,
unless an Early Settlement, a Fundamental Change Early Settlement or a Termination Event with
respect to the Unit of which such Purchase Contract is a part shall have occurred. The Settlement
Rate is subject to adjustment as described in the Purchase Contract and Pledge Agreement.

No fractional shares of Common Stock will be issued upon settlement of Purchase Contracts, as
provided in Section 5.09 of the Purchase Contract and Pledge Agreement.

Each Purchase Contract evidenced hereby that is settled through Early Settlement or
Fundamental Change Early Settlement shall obligate the Holder of the related Corporate Units to
purchase at the Purchase Price, and the Company to sell, a number of shares of Common Stock equal
to the Minimum Settlement Rate (in the case of an Early Settlement) or applicable Fundamental
Change Early Settlement Rate (in the case of a Fundamental Change Early Settlement).

In accordance with the terms of the Purchase Contract and Pledge Agreement, unless a
Termination Event shall have occurred, the Holder of this Corporate Units Certificate shall pay the
Purchase Price for the shares of Common Stock purchased pursuant to each Purchase Contract
evidenced hereby by effecting a Cash Settlement, an Early Settlement or, if applicable, a
Fundamental Change Early Settlement or from the proceeds of the Applicable Ownership Interests in
the Treasury Portfolio (as specified in clause (i) of the definition of Applicable Ownership
Interest in the Treasury Portfolio) or a Final Remarketing of the Notes underlying the Pledged
Applicable Ownership Interests in Notes. A Holder of Corporate Units who (1) does not, prior to
5:00 p.m. (New York City time) on the second Business Day immediately preceding the first day of
the Final Remarketing Period (or upon the occurrence of a Failed Remarketing, on the second
Business Day immediately preceding the Purchase Contract Settlement Date), make an effective Cash
Settlement in the manner provided in the Purchase Contract and Pledge Agreement or (2) prior to
5:00 p.m. (New York City time) on the second Business Day immediately preceding the Purchase
Contract Settlement Date (other than during a Blackout Period), does not make an effective Early
Settlement, shall pay the Purchase Price, as described in the Purchase Contract and Pledge
Agreement, for

 

A-5

 

the shares of Common Stock to be delivered  under the related Purchase Contract from the proceeds of the sale of the Notes underlying the
Pledged Applicable Ownership Interests in Notes held by the Collateral Agent in the Remarketing
unless the Holder has previously made a Fundamental Change Early Settlement. If the Treasury
Portfolio has replaced the Notes as a component of Corporate Units, a Holder of Corporate Units
shall pay the Purchase Price for the shares of Common Stock to be delivered under the related
Purchase Contract from the proceeds at maturity of the Applicable Ownership Interests in the
Treasury Portfolio (as specified in clause (i) of the definition of Applicable Ownership Interest
in the Treasury Portfolio).

As provided in the Purchase Contract and Pledge Agreement, upon the occurrence of a Failed
Final Remarketing, as of the Purchase Contract Settlement Date, each Holder of any Pledged
Applicable Interests in Notes, unless such Holder has elected Cash Settlement and delivered cash in
accordance with Section 5.03(a) of the Purchase Contract and Pledge Agreement, shall be deemed to
have exercised such Holder’s Put Right with respect to the Notes underlying such Applicable
Ownership Interests in Notes and to have elected to apply a portion of the Proceeds equal to the
principal amount of the Notes against such Holder’s obligation to pay the aggregate Purchase Price
for the shares of Common Stock to be issued under the related Purchase Contracts in full
satisfaction of such Holders’ Obligations under such Purchase Contracts.

The Company shall not be obligated to issue any shares of Common Stock in respect of a
Purchase Contract or deliver any certificates therefor to the Holder unless it shall have received
payment of the aggregate Purchase Price, as described in the Purchase Contract and Pledge
Agreement, for the shares of Common Stock to be purchased thereunder in the manner set forth in the
Purchase Contract and Pledge Agreement.

The Purchase Contracts and all obligations and rights of the Company and the Holders
thereunder, including, without limitation, the rights of the Holders to receive and the obligation
of the Company to pay any Contract Adjustment Payments, shall immediately and automatically
terminate, without the necessity of any notice or action by any Holder, the Purchase Contract Agent
or the Company, if, on or prior to the Purchase Contract Settlement Date, a Termination Event shall
have occurred. Upon the occurrence of a Termination Event, the Company shall give written notice
to the Purchase Contract Agent and to the Holders, at their addresses as they appear in the
Security Register. Upon and after the occurrence of a Termination Event, the Collateral Agent
shall release the Notes underlying the Pledged Applicable Ownership Interests in Notes or the
Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of such term) forming a part of each Corporate Unit from the Pledge. A Corporate Unit
shall thereafter represent the right to receive the Notes underlying the Applicable Ownership
Interest in the Notes or the Applicable Ownership Interests in the Treasury Portfolio forming a
part of such Corporate Units in accordance with the terms of the Purchase Contract and Pledge
Agreement.

Under the terms of the Purchase Contract and Pledge Agreement, the Purchase Contract Agent
shall exercise the voting and any other consensual rights pertaining to the Notes underlying the
Pledged Applicable Ownership Interests in Notes to the extent instructed in writing by the Holders.
Upon receipt of notice of any meeting at which holders of Notes are entitled to vote or upon any
solicitation of consents, waivers or proxies of holders of Notes, the Purchase Contract Agent shall, as soon as practicable thereafter, mail, first class, postage
pre-paid, to the Corporate Units Holders the notice required by the Purchase Contract and Pledge
Agreement.

 

A-6

 

Upon the occurrence of a Successful Optional Remarketing and receipt in the Collateral Account
of the proceeds thereof, the Collateral Agent shall cause the Securities Intermediary to apply an
amount equal to the Treasury Portfolio Purchase Price to purchase, on behalf of the Holders of
Corporate Units, the Treasury Portfolio.

Following the occurrence of a Successful Optional Remarketing, the Collateral Agent shall have
such security interest rights with respect to the Applicable Ownership Interests in the Treasury
Portfolio (as specified in clause (i) of the definition of Applicable Ownership Interest in the
Treasury Portfolio) as the Collateral Agent had in respect of Applicable Ownership Interests in
Notes and the underlying Notes, as provided in the Purchase Contract and Pledge Agreement and any
reference herein to the Notes or Applicable Ownership Interests in Notes shall be deemed to be a
reference to the Treasury Portfolio or the Applicable Ownership Interests in the Treasury
Portfolio, as the case may be.

The Corporate Units Certificates are issuable only in registered form and only in
denominations of a single Corporate Unit and any integral multiple thereof. The transfer of any
Corporate Units Certificate will be registered and Corporate Units Certificates may be exchanged as
provided in the Purchase Contract and Pledge Agreement. A Holder who elects to substitute a
Treasury Security for the Notes underlying the Applicable Ownership Interests in Notes, thereby
creating Treasury Units, shall be responsible for any fees or expenses payable in connection
therewith. Except as provided in the Purchase Contract and Pledge Agreement, such Corporate Unit
shall not be separable into its constituent parts, and the rights and obligations of the Holder of
such Corporate Unit in respect of the Applicable Ownership Interest in Notes, or Applicable
Ownership Interest in the Treasury Portfolio, as the case may be, and Purchase Contract
constituting such Corporate Units may be transferred and exchanged only as a Corporate Unit.

Subject to, and in compliance with, the conditions and terms set forth in the Purchase
Contract and Pledge Agreement, the Holder of Corporate Units may effect a Collateral Substitution.
From and after such Collateral Substitution, each Unit for which Pledged Treasury Securities secure
the Holder’s obligation under the Purchase Contract shall be referred to as a “Treasury Unit”.
Subject to certain exceptions in the Purchase Contract and Pledge Agreement, a Holder may make such
Collateral Substitution only in integral multiples of 20 Corporate Units for 20 Treasury Units.

Subject to and upon compliance with the provisions of, and certain exceptions described in,
the Purchase Contract and Pledge Agreement, at the option of the Holder thereof, Purchase Contracts
underlying Units may be settled early by effecting an Early Settlement as provided in the Purchase
Contract and Pledge Agreement in integral multiples of 20 Corporate Units, or if Applicable
Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in
Notes as a component of the Corporate Units, in integral multiples of 50,000 Corporate Units (or
such other number of Corporate Units as may be determined by the Remarketing Agent(s) upon a
Successful Optional Remarketing of Notes, which number shall be provided to a Holder by the Company
at the request of such Holder).

 

A-7

 

Upon Early Settlement of Purchase Contracts by a Holder of the related Units, the Notes
underlying the Pledged Applicable Ownership Interests in Notes or the Applicable Ownership
Interests in the Treasury Portfolio (as specified in clause (i) of the definition of Applicable
Ownership Interest in the Treasury Portfolio) underlying such Units shall be released from the
Pledge as provided in the Purchase Contract and Pledge Agreement and the Holder shall be entitled
to receive a number of shares of Common Stock on account of each Purchase Contract forming part of
a Corporate Unit as to which Early Settlement is effected equal to the Minimum Settlement Rate.

Upon the occurrence of a Fundamental Change, a Holder of Corporate Units may effect
Fundamental Change Early Settlement of the Purchase Contracts underlying such Corporate Units
pursuant to the terms of the Purchase Contract and Pledge Agreement in integral multiples of 20
Corporate Units, or if the Applicable Ownership Interests in the Treasury Portfolio have replaced
the Applicable Ownership Interests in Notes as a component of the Corporate Units, in integral
multiples of 50,000 Corporate Units (or such other number of Corporate Units as may be determined
by the Remarketing Agent(s) upon a Successful Remarketing of Notes, which number shall be provided
to a Holder by the Company at the request of such Holder). Upon Fundamental Change Early
Settlement of Purchase Contracts by a Holder of the related Corporate Units, the Notes underlying
the Pledged Applicable Ownership Interests in Notes or the Applicable Ownership Interests in the
Treasury Portfolio (as specified in clause (i) of the definition of Applicable Ownership Interest
in the Treasury Portfolio) underlying such Corporate Units shall be released from the Pledge as
provided in the Purchase Contract and Pledge Agreement and the Holder shall be entitled to receive
a number of shares of Common Stock or other consideration specified in the Purchase Contract and
Pledge Agreement on account of each Purchase Contract forming part of a Corporate Unit as to which
Fundamental Change Early Settlement is effected equal to the applicable Fundamental Change Early
Settlement Rate.

Upon registration of transfer of this Corporate Units Certificate, the transferee shall be
bound (without the necessity of any other action on the part of such transferee, except as may be
required by the Purchase Contract Agent pursuant to the Purchase Contract and Pledge Agreement),
under the terms of the Purchase Contract and Pledge Agreement and the Purchase Contracts evidenced
hereby and the transferor shall be released from the obligations under the Purchase Contracts
evidenced by this Corporate Units Certificate. The Company covenants and agrees, and the Holder,
by its acceptance hereof, likewise covenants and agrees, to be bound by the provisions of this
paragraph.

The Holder of this Corporate Units Certificate, by its acceptance hereof, authorizes the
Purchase Contract Agent to enter into and perform the related Purchase Contracts forming part of
the Corporate Units evidenced hereby on its behalf as its attorney-in-fact, expressly withholds any
consent to the assumption (i.e., affirmance) of the Purchase Contracts by the Company or its
trustee in the event that the Company becomes the subject of a case under the Bankruptcy Code,
agrees to be bound by the terms and provisions thereof, covenants and agrees to perform its
obligations under such Purchase Contracts, consents to the provisions of the Purchase Contract and
Pledge Agreement, authorizes the Purchase Contract Agent to enter into and perform the Purchase
Contract and Pledge Agreement on its behalf as its attorney-in-fact, and consents to the Pledge of
the Applicable Ownership Interests in Notes and the

 

A-8

 

underlying Notes or the Applicable Ownership
Interests in the Treasury Portfolio (as specified in clause (i) of the
 definition of Applicable Ownership Interest in the Treasury Portfolio), as the case may be,
underlying this Corporate Units Certificate pursuant to the Purchase Contract and Pledge Agreement.
The Holder further covenants and agrees that, to the extent and in the manner provided in the
Purchase Contract and Pledge Agreement, but subject to the terms thereof, any payments with respect
to the Notes underlying the Pledged Applicable Ownership Interests in Notes (other than interest
payments thereon) or the Proceeds of the Applicable Ownership Interests in the Treasury Portfolio
(as specified in clause (i) of the definition of Applicable Ownership Interest in the Treasury
Portfolio), as the case may be, on the Purchase Contract Settlement Date equal to the aggregate
Purchase Price, as described in the Purchase Contract and Pledge Agreement, for the related
Purchase Contracts shall be paid by the Collateral Agent to the Company in satisfaction of such
Holder’s obligations under the related Purchase Contracts and such Holder shall acquire no right,
title or interest in such payments.

Subject to certain exceptions, the provisions of the Purchase Contract and Pledge Agreement
may be amended with the consent of the Holders of a majority of the Purchase Contracts.

The Purchase Contracts shall be governed by, and construed in accordance with, the laws of the
State of New York, applicable to agreements made and to be performed wholly within such state.

The Purchase Contracts shall not, prior to the settlement thereof, entitle the Holder to any
of the rights of a holder of shares of Common Stock.

Prior to due presentment of this Certificate for registration of transfer, the Company, the
Purchase Contract Agent and its Affiliates and any agent of the Company or the Purchase Contract
Agent may treat the Person in whose name this Corporate Units Certificate is registered as the
owner of the Corporate Units evidenced hereby for the purpose of receiving payments of interest
payable on the Notes underlying the Applicable Ownership Interests in Notes, receiving payments of
Contract Adjustment Payments (subject to any applicable record date), performance of the Purchase
Contracts and for all other purposes whatsoever, whether or not any payments in respect thereof be
overdue and notwithstanding any notice to the contrary, and neither the Company, the Purchase
Contract Agent nor any such agent shall be affected by notice to the contrary.

A copy of the Purchase Contract and Pledge Agreement is available for inspection at the
offices of the Purchase Contract Agent.

 

A-9

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 
	TEN COM:

	 	as tenants in common	 	 
	 
	 	 	 	 
	UNIF GIFT MIN ACT:

	 	                                        Custodian
	 	                                        
	 

	 	     (cust)
	 	     (minor)
	 
	 	 	 	 
	 	 	Under Uniform Gifts to Minors Act of
	 
	 	 	 	 
	TENANT:	 	as tenants by the entireties
	 
	 	 	 	 
	JT TEN:	 	as joint tenants with right of survivorship and not as
tenants in common

Additional abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

the within Corporate Units Certificates and all rights thereunder, hereby irrevocably constituting
and appointing                      attorney, to transfer said Corporate Units Certificates on the books of PPL
Corporation, with full power of substitution in the premises.

	 	 	 	 	 
	Dated:                     

	 	Signature	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the face of
the within Corporate Units Certificates in every
particular, without alteration or enlargement or any
change whatsoever.

			
	Signature Guarantee:	 	
 

 

A-10

 

SETTLEMENT INSTRUCTIONS

The undersigned Holder directs that a certificate for shares of Common Stock deliverable upon
settlement on or after the Purchase Contract Settlement Date of the Purchase Contracts underlying
the number of Corporate Units evidenced by this Corporate Units Certificate be registered in the
name of, and delivered, together with a check in payment for any fractional share, to the
undersigned at the address indicated below unless a different name and address have been indicated
below. If shares are to be registered in the name of a Person other than the undersigned, the
undersigned will pay any transfer tax payable incident thereto.

	 	 	 	 	 	 	 
	 	 	 	 	(if assigned to another person)
	 
	 	 	 	 	 	 
	Dated:	 	                    	 	REGISTERED HOLDER
	 
	 	 	 	 	 	 
	If shares are to be registered
in the name of and delivered to
a Person other than the Holder,
please (i) print such Person’s
name and address and (ii)
provide a guarantee of your
signature:	 	Please print name and address of Register Holder:
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	 	 	Address:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	Social Security or other Taxpayer 

Identification Number, if any	 	 	 	 
	 
	 	 	 	 	 	 
	Signature
	 	 	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 	 	 
	Signature 

Guarantee:
	 	 	 	 	 	 
	 

	 	 	 	 

 

A-11

 

ELECTION TO SETTLE EARLY/FUNDAMENTAL CHANGE EARLY SETTLEMENT

The undersigned Holder of this Corporate Units Certificate hereby irrevocably exercises the
option to effect [Early Settlement] [Fundamental Change Early Settlement] in accordance with the
terms of the Purchase Contract and Pledge Agreement with respect to the Purchase Contracts
underlying the number of Corporate Units evidenced by this Corporate Units Certificate specified
below. The option to effect [Early Settlement] [Fundamental Change Early Settlement] may be
exercised only with respect to Purchase Contracts underlying Corporate Units in multiples of 20
Corporate Units or an integral multiple thereof; provided that if Applicable Ownership Interests in
the Treasury Portfolio have replaced Applicable Ownership Interests in the Notes as a component of
the Corporate Units, Corporate Units Holders may only effect [Early Settlement] [Fundamental Change
Early Settlement] in multiples of 50,000 Corporate Units (or such other number of Corporate Units
as may be determined by the Remarketing Agent(s) upon a Successful Remarketing of Notes, which
number shall be provided to a Holder by the Company at the request of such Holder). The
undersigned Holder directs that a certificate for shares of Common Stock or other securities
deliverable upon such [Early Settlement] [Fundamental Change Early Settlement] be registered in the
name of, and delivered, together with a check in payment for any fractional share and any Corporate
Units Certificate representing any Corporate Units evidenced hereby as to which [Early Settlement]
[Fundamental Change Early Settlement] of the related Purchase Contracts is not effected, to the
undersigned at the address indicated below unless a different name and address have been indicated
below. Notes underlying Pledged Applicable Ownership Interests in Notes or the Applicable
Ownership Interests in the Treasury Portfolio, as the case may be, deliverable upon such [Early
Settlement] [Fundamental Change Early Settlement] will be transferred in accordance with the
transfer instructions set forth below. If shares are to be registered in the name of a Person
other than the undersigned, the undersigned will pay any transfer tax payable incident thereto.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Signature:	 	 
	 

	 	 
	 	 	 	 	 	 

			
	Signature

Guarantee:	 	 

 

A-12

 

Number of Units evidenced hereby as to which [Early Settlement] [Fundamental Change Early
Settlement] of the related Purchase Contracts is being elected:

	 	 	 	 	 	 	 
	If shares are to be registered in the name
of and delivered to a Person other than
the Holder, please (i) print such Person’s
name and address and (ii) provide a
guarantee of your signature:	 	REGISTERED HOLDER 

Please print name and address
of Register Holder:
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	 	 	Address:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Social Security or other Taxpayer 

Identification Number, if any	 	 	 	 
	 
	 	 	 	 	 	 
	Signature:
	 	 	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 	 	 
	Signature 

Guarantee:
	 	 	 	 	 	 
	 

	 	 	 	 

 

A-13

 

Transfer Instructions for Notes underlying Pledged Applicable Ownership Interests in Notes or
the Applicable Ownership Interests in the Treasury Portfolio, as the case may be, transferable upon
[Early Settlement] [Fundamental Change Early Settlement]:

 

A-14

 

[TO BE ATTACHED TO GLOBAL CERTIFICATES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

The initial number of
Corporate Units evidenced by this Global Certificate is [___]. The
following increases or decreases in this Global Certificate have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of	 	 
	 	 	Amount of	 	Amount of	 	Corporate Units	 	 
	 	 	increase in	 	decrease in	 	evidenced by	 	 
	 	 	number of	 	number of	 	this Global	 	Signature of
	 	 	Corporate Units	 	Corporate Units	 	Certificate	 	authorized
	 	 	evidenced by	 	evidenced by	 	following such	 	signatory of
	 	 	the Global	 	the Global	 	decrease or	 	Purchase
	Date	 	Certificate	 	Certificate	 	increase	 	Contract Agent
	 	 	 	 	 	 	 	 	 

 

A-15

 

EXHIBIT B

(FORM OF FACE OF TREASURY UNITS CERTIFICATE)

[For inclusion in Global Certificate only — THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN
THE MEANING OF THE PURCHASE CONTRACT AND PLEDGE AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED
IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
“DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS CERTIFICATE IS
EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AND PLEDGE AGREEMENT
AND NO TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.]

 

B-1

 

			
	 	 	 
	No.
	 	CUSIP No. 69351T 122
	Number of Treasury Units:
	 	ISIN No. US69351T1227

PPL CORPORATION

Treasury Units

This Treasury
 Units Certificate certifies that [___] is the registered Holder of the
number of Treasury Units set forth above [For inclusion in Global Certificates only — or such other
number of Treasury Units reflected in the Schedule of Increases or Decreases in Global Certificate
attached hereto, which number, taken together with the number of all other outstanding Treasury
Units and the number of all outstanding Corporate Units, shall not exceed 19,550,000 Treasury
Units]. Each Treasury Unit consists of (i) a 1/20, or 5%, undivided beneficial ownership interest
in a Treasury Security having a principal amount at maturity equal to $1,000, subject to the Pledge
of such Treasury Security by such Holder pursuant to the Purchase Contract and Pledge Agreement,
and (ii) the rights and obligations of the Holder under one Purchase Contract with the Company
pursuant to which (A) the Holder will agree to purchase from the Company, and the Company will
agree to sell to the Holder, not later than the Purchase Contract Settlement Date, for the Stated
Amount in cash, a number of shares of Common Stock equal to the Settlement Rate, subject to
anti-dilution adjustments and (B) the Company will pay the Holder quarterly Contract Adjustment
Payments, subject to the Company’s right to defer such Contract Adjustment Payments.

All capitalized terms used herein that are defined in the Purchase Contract and Pledge
Agreement (as defined on the reverse hereof) have the meaning set forth therein.

In the event of any inconsistency between the provisions of this Treasury Units Certificate
and the provisions of the Purchase Contract and Pledge Agreement (as defined below), the provisions
of the Purchase Contract and Pledge Agreement shall govern and control.

Pursuant to the Purchase Contract and Pledge Agreement, the Treasury Securities underlying
each Treasury Unit evidenced hereby have been pledged to the Collateral Agent, for the benefit of
the Company, to secure the obligations of the Holder under the Purchase Contract comprising part of
such Treasury Unit.

Each Purchase Contract evidenced hereby obligates the Holder of this Treasury Units
Certificate to purchase, and the Company to sell, on the Purchase Contract Settlement Date, at a
Purchase Price equal to the Stated Amount, a number of shares of Common Stock, equal to the
Settlement Rate, unless on or prior to the Purchase Contract Settlement Date there shall have
occurred a Termination Event, an Early Settlement or a Fundamental Change Early Settlement with
respect to such Purchase Contract, all as provided in the Purchase Contract and Pledge Agreement.
The Purchase Price for the shares of Common Stock purchased pursuant to each Purchase Contract
evidenced hereby, if not paid earlier, shall be paid on the Purchase Contract Settlement Date by
application of the proceeds from the Treasury Securities at maturity pledged to secure the
obligations under such Purchase Contract.

 

B-2

 

Each Purchase Contract evidenced hereby obligates each Holder and beneficial owner to agree,
for U.S. federal income tax purposes, to treat each beneficial owner of a Treasury Unit as the
owner of the applicable interests in the Treasury Securities.

The Company shall pay, on each Contract Adjustment Payment Date, in respect of each Purchase
Contract forming part of a Treasury Unit evidenced hereby, an amount (the “Contract Adjustment
Payments”) equal to 4.43% per year of the Stated Amount, computed on the basis of a 360-day year
consisting of twelve 30-day months. Such Contract Adjustment Payments shall be payable to the
Person in whose name this Treasury Units Certificate is registered at the close of business on the
Record Date for such Contract Adjustment Payment Date. The Company may, at its option, defer such
Contract Adjustment Payments, as described in the Purchase Contract and Pledge Agreement. The
Contract Adjustment Payments are unsecured and will rank subordinate and junior in right of payment
to all of the Company’s existing and future Senior Indebtedness.

Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in
the Borough of Manhattan, New York City. If the book-entry system for the Corporate Units has been
terminated, the Contract Adjustment Payments will be payable, at the option of the Company, by
check mailed to the address of the Person entitled thereto at such Person’s address as it appears
on the Security Register, or by wire transfer to the account designated by such Person by a prior
written notice to the Purchase Contract Agent.

Reference is hereby made to the further provisions set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place.

Unless the certificate of authentication hereon has been executed by the Purchase Contract
Agent by manual signature, this Treasury Units Certificate shall not be entitled to any benefit
under the Purchase Contract and Pledge Agreement or be valid or obligatory for any purpose.

 

B-3

 

IN WITNESS WHEREOF, the Company and the Holder specified above have caused this instrument to
be duly executed.

	 	 	 	 	 	 	 	 	 
	 	 	PPL CORPORATION
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	   
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HOLDER SPECIFIED ABOVE (as to obligations of such
	 	 	Holder under the Purchase Contracts)
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	THE BANK OF NEW YORK MELLON, not individually
but solely as attorney-in-fact of such Holder
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	   
	 

	 	 	 	 	 	Authorized Signatory	 	 

CERTIFICATE OF AUTHENTICATION OF

PURCHASE CONTRACT AGENT

This is one of the Treasury Units Certificates referred to in the within-mentioned Purchase
Contract and Pledge Agreement.

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON,	 	 
	 	 	as Purchase Contract Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

Dated:

 

B-4

 

(REVERSE OF TREASURY UNITS CERTIFICATE)

Each Purchase Contract evidenced hereby is governed by a Purchase Contract and Pledge
Agreement, dated as of April 15, 2011 (as may be supplemented from time to time, the “Purchase
Contract and Pledge Agreement”) between the Company and The Bank of New York Mellon, as Collateral
Agent, as Custodial Agent, as Securities Intermediary, as Purchase Contract Agent and as
attorney-in-fact for the Holders of Corporate Units and Treasury Units from time to time, to which
Purchase Contract and Pledge Agreement and supplemental agreements thereto reference is hereby made
for a description of the respective rights, limitations of rights, obligations, duties and
immunities thereunder of the Purchase Contract Agent, the Company and the Holders and of the terms
upon which the Treasury Units Certificates are, and are to be, executed and delivered.

Each Purchase Contract evidenced hereby obligates the Holder of this Treasury Units
Certificate to purchase, and the Company to sell, on the Purchase Contract Settlement Date at a
price equal to the Stated Amount, a number of shares of Common Stock equal to the Settlement Rate,
unless an Early Settlement, a Fundamental Change Early Settlement or a Termination Event with
respect to the Unit of which such Purchase Contract is a part shall have occurred. The Settlement
Rate is subject to adjustment as described in the Purchase Contract and Pledge Agreement.

No fractional shares of Common Stock will be issued upon settlement of Purchase Contracts, as
provided in Section 5.09 of the Purchase Contract and Pledge Agreement.

Each Purchase Contract evidenced hereby that is settled through Early Settlement or
Fundamental Change Early Settlement shall obligate the Holder of the related Treasury Units to
purchase at the Purchase Price and the Company to sell, a number of shares of Common Stock equal to
the Minimum Settlement Rate (in the case of an Early Settlement) or applicable Fundamental Change
Early Settlement Rate (in the case of a Fundamental Change Early Settlement).

In accordance with the terms of the Purchase Contract and Pledge Agreement, the Holder of this
Treasury Unit Certificate shall pay the Purchase Price for the shares of Common Stock purchased
pursuant to each Purchase Contract evidenced hereby either by effecting an Early Settlement or, if
applicable, a Fundamental Change Early Settlement of each such Purchase Contract or by applying the
proceeds of the Pledged Treasury Securities underlying such Holder’s Treasury Unit equal to the
Purchase Price for such Purchase Contract to the purchase of the Common Stock. A Holder of Treasury
Units who prior to 5:00 p.m. (New York City time) on the second Business Day immediately preceding
the Purchase Contract Settlement Date, does not make an effective Early Settlement, shall pay the
Purchase Price, as described in the Purchase Contract and Pledge Agreement, for the shares of
Common Stock to be issued under the related Purchase Contract from the proceeds of the Pledged
Treasury Securities.

The Company shall not be obligated to issue any shares of Common Stock in respect of a
Purchase Contract or deliver any certificates therefor to the Holder unless it shall have received
payment of the aggregate Purchase Price, as described in the Purchase Contract and Pledge
Agreement, for the shares of Common Stock to be purchased thereunder in the manner set forth
in the Purchase Contract and Pledge Agreement.

 

B-5

 

The Purchase Contracts and all obligations and rights of the Company and the Holders
thereunder, including, without limitation, the rights of the Holders to receive and the obligation
of the Company to pay any Contract Adjustment Payments, shall immediately and automatically
terminate, without the necessity of any notice or action by any Holder, the Purchase Contract Agent
or the Company, if, on or prior to the Purchase Contract Settlement Date, a Termination Event shall
have occurred. Upon the occurrence of a Termination Event, the Company shall give written notice
to the Purchase Contract Agent and the Holders, at their addresses as they appear in the Security
Register. Upon and after the occurrence of a Termination Event, the Collateral Agent shall release
the Treasury Securities underlying each Treasury Unit from the Pledge. A Treasury Unit shall
thereafter represent the right to receive the Treasury Security underlying such Treasury Unit, in
accordance with the terms of the Purchase Contract and Pledge Agreement.

The Treasury Units Certificates are issuable only in registered form and only in denominations
of a single Treasury Unit and any integral multiple thereof. The transfer of any Treasury Units
Certificate will be registered and Treasury Units Certificates may be exchanged as provided in the
Purchase Contract and Pledge Agreement. A Holder who elects to substitute Notes for Treasury
Securities, thereby recreating Corporate Units, shall be responsible for any fees or expenses
payable in connection therewith. Except as provided in the Purchase Contract and Pledge Agreement,
such Treasury Unit shall not be separable into its constituent parts, and the rights and
obligations of the Holder of such Treasury Unit in respect of the Treasury Security and the
Purchase Contract constituting such Treasury Unit may be transferred and exchanged only as a
Treasury Unit.

Subject to, and in compliance with, the conditions and terms set forth in the Purchase
Contract and Pledge Agreement, the Holder of Treasury Units may effect a Collateral Substitution.
From and after such substitution, each Unit for which Pledged Applicable Ownership Interests in
Notes secure the Holder’s obligation under the Purchase Contract shall be referred to as a
“Corporate Unit”. Subject to certain exceptions described in the Purchase Contract and Pledge
Agreement, a Holder may make such Collateral Substitution only in integral multiples of 20 Treasury
Units for 20 Corporate Units.

Subject to and upon compliance with the provisions of, and certain exceptions described in,
the Purchase Contract and Pledge Agreement, at the option of the Holder thereof, Purchase Contracts
underlying Units may be settled early by effecting an Early Settlement as provided in the Purchase
Contract and Pledge Agreement in integral multiples of 20 Treasury Units.

Upon Early Settlement of Purchase Contracts by a Holder of the related Units, the Pledged
Treasury Securities underlying such Units shall be released from the Pledge as provided in the
Purchase Contract and Pledge Agreement and the Holder shall be entitled to receive a number of
shares of Common Stock on account of each Purchase Contract forming part of a Treasury Unit as to
which Early Settlement is effected equal to the Minimum Settlement Rate.

 

B-6

 

Upon the occurrence of a Fundamental Change, a Holder of Treasury Units may effect Fundamental
Change Early Settlement of the Purchase Contracts underlying such Treasury Units pursuant to the
terms of the Purchase Contract and Pledge Agreement in integral multiples of 20 Treasury Units
(subject to certain exceptions described in the Purchase Contract and Pledge Agreement). Upon
Fundamental Change Early Settlement of Purchase Contracts by a Holder of the related Treasury
Units, the Pledged Treasury Securities underlying such Treasury Units shall be released from the
Pledge as provided in the Purchase Contract and Pledge Agreement and the Holder shall be entitled
to receive a number of shares of Common Stock or other consideration specified in the Purchase
Contract and Pledge Agreement on account of each Purchase Contract forming part of a Treasury Unit
as to which Fundamental Change Early Settlement is effected equal to the applicable Fundamental
Change Early Settlement Rate.

Upon registration of transfer of this Treasury Units Certificate, the transferee shall be
bound (without the necessity of any other action on the part of such transferee, except as may be
required by the Purchase Contract Agent pursuant to the Purchase Contract and Pledge Agreement),
under the terms of the Purchase Contract and Pledge Agreement and the Purchase Contracts evidenced
hereby and the transferor shall be released from the obligations under the Purchase Contracts
evidenced by this Treasury Units Certificate. The Company covenants and agrees, and the Holder, by
its acceptance hereof, likewise covenants and agrees, to be bound by the provisions of this
paragraph.

The Holder of this Treasury Units Certificate, by its acceptance hereof, authorizes the
Purchase Contract Agent to enter into and perform the related Purchase Contracts forming part of
the Treasury Units evidenced hereby on its behalf as its attorney-in-fact, expressly withholds any
consent to the assumption (i.e., affirmance) of the Purchase Contracts by the Company or its
trustee in the event that the Company becomes the subject of a case under the Bankruptcy Code,
agrees to be bound by the terms and provisions thereof, covenants and agrees to perform its
obligations under such Purchase Contracts, consents to the provisions of the Purchase Contract and
Pledge Agreement, authorizes the Purchase Contract Agent to enter into and perform the Purchase
Contract and Pledge Agreement on its behalf as its attorney-in-fact, and consents to the Pledge of
the Treasury Securities underlying this Treasury Units Certificate pursuant to the Purchase
Contract and Pledge Agreement. The Holder further covenants and agrees, that, to the extent and in
the manner provided in the Purchase Contract and Pledge Agreement, but subject to the terms
thereof, payments in respect to the aggregate principal amount at maturity of the Pledged Treasury
Securities on the Purchase Contract Settlement Date equal to the aggregate Purchase Price, as
described in the Purchase Contract and Pledge Agreement, for the related Purchase Contracts shall
be paid by the Collateral Agent to the Company in satisfaction of such Holder’s obligations under
such Purchase Contracts and such Holder shall acquire no right, title or interest in such payments.

Subject to certain exceptions, the provisions of the Purchase Contract and Pledge Agreement
may be amended with the consent of the Holders of a majority of the Purchase Contracts.

The Purchase Contracts shall be governed by, and construed in accordance with, the laws of the
State of New York, applicable to agreements made and to be performed wholly within such state.

 

B-7

 

The Purchase Contracts shall not, prior to the settlement thereof, entitle the Holder to any
of the rights of a holder of shares of Common Stock.

Prior to due presentment of this Certificate for registration of transfer, the Company, the
Purchase Contract Agent and its Affiliates and any agent of the Company or the Purchase Contract
Agent may treat the Person in whose name this Treasury Units Certificate is registered as the owner
of the Treasury Units evidenced hereby for the purpose of receiving payments of Contract Adjustment
Payments (subject to any applicable record date), performance of the Purchase Contracts and for all
other purposes whatsoever, whether or not any payments in respect thereof be overdue and
notwithstanding any notice to the contrary, and neither the Company, the Purchase Contract Agent
nor any such agent shall be affected by notice to the contrary.

A copy of the Purchase Contract and Pledge Agreement is available for inspection at the
offices of the Purchase Contract Agent.

 

B-8

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 
	TEN COM:

	 	as tenants in common	 	 
	 
	 	 	 	 
	UNIF GIFT MIN ACT:

	 	
                                         Custodian	 	 
	 

	 	 	 	 
	 

	 	(cust)
	 	(minor)
	 
	 	 	 	 
	 

	 	Under Uniform Gifts to Minors Act of	 	 
	 
	 	 	 	 
	TENANT:

	 	as tenants by the entireties	 	 
	 
	 	 	 	 
	JT TEN:	 	as joint tenants with right of survivorship and not as tenants in common

Additional abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

the within Treasury Units Certificates and all rights thereunder, hereby irrevocably constituting
and appointing                      attorney, to transfer said Treasury Units Certificates on the books of PPL
Corporation, with full power of substitution in the premises.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	Signature	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	NOTICE: The signature to this assignment must
correspond with the name as it appears upon the face of
the within Treasury Units Certificates in every
particular, without alteration or enlargement or any
change whatsoever.
	 
	 	 	 	 	 	 	 	 
	 

	 	Signature Guarantee:	 	 	 	 	 	 
	 	 	 	 	 

 

B-9

 

SETTLEMENT INSTRUCTIONS

The undersigned Holder directs that a certificate for shares of Common Stock deliverable upon
settlement on or after the Purchase Contract Settlement Date of the Purchase Contracts underlying
the number of Treasury Units evidenced by this Treasury Units Certificate be registered in the name
of, and delivered, together with a check in payment for any fractional share, to the undersigned at
the address indicated below unless a different name and address have been indicated below. If
shares are to be registered in the name of a Person other than the undersigned, the undersigned
will pay any transfer tax payable incident thereto.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	(if assigned to another person)
	 
	 	 	 	 	 	 	 	 
	Dated	 	 	 	REGISTERED HOLDER
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	If shares are to be registered
in the name of and delivered to
a Person other than the Holder,
please (i) print such Person’s
name and address and (ii)
provide a guarantee of your
signature:	 	Please print name and address of Register Holder:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address

	 	 	 	Address:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Social Security or other
Taxpayer Identification
Number, if any	 	 	 	 	 	 

	 	 	 	 	 
	Signature:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

	 	 

 

B-10

 

ELECTION TO SETTLE EARLY/FUNDAMENTAL CHANGE EARLY SETTLEMENT

The undersigned Holder of this Treasury Units Certificate hereby irrevocably exercises the
option to effect [Early Settlement] [Fundamental Change Early Settlement] in accordance with the
terms of the Purchase Contract and Pledge Agreement with respect to the Purchase Contracts
underlying the number of Treasury Units evidenced by this Treasury Units Certificate specified
below. The option to effect [Early Settlement] [Fundamental Change Early Settlement] may be
exercised only with respect to Purchase Contracts underlying Treasury Units in multiples of 20
Treasury Units or an integral multiple thereof. The undersigned Holder directs that a certificate
for shares of Common Stock or other securities deliverable upon such [Early Settlement]
[Fundamental Change Early Settlement] be registered in the name of, and delivered, together with a
check in payment for any fractional share and any Treasury Units Certificate representing any
Treasury Units evidenced hereby as to which [Early Settlement] [Fundamental Change Early
Settlement] of the related Purchase Contracts is not effected, to the undersigned at the address
indicated below unless a different name and address have been indicated below. Pledged Treasury
Securities deliverable upon such [Early Settlement] [Fundamental Change Early Settlement] will be
transferred in accordance with the transfer instructions set forth below.  If shares are to
be registered in the name of a Person other than the undersigned, the undersigned will pay any
transfer tax payable incident thereto.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	Signature	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature 

Guarantee:
	 	 	 	 	 	 	 	 
	 	 	 

 

B-11

 

Number of Units evidenced hereby as to which [Early Settlement] [Fundamental Change Early
Settlement] of the related Purchase Contracts is being elected:

	 	 	 	 	 	 	 	 	 
	If shares are to be registered in the name
of and delivered to a Person other than
the Holder, please (i) print such Person’s
name and address and (ii) provide a
guarantee of your signature:	 	REGISTERED HOLDER
	 	 	 	 	Please print name and address of Register Holder:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address

	 	 	 	Address:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Social Security or other

Taxpayer Identification 

Number, if any	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature 

Guarantee:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Transfer Instructions for Pledged Treasury Securities transferable upon [Early Settlement]
[Fundamental Change Early Settlement]:

 

B-12

 

[TO BE ATTACHED TO GLOBAL CERTIFICATES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

The initial number of Treasury Units evidenced by this Global Certificate is [  ]. The following
increases or decreases in this Global Certificate have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of	 	 
	 	 	Amount of	 	Amount of	 	Treasury Units	 	 
	 	 	increase in	 	decrease in	 	evidenced by	 	 
	 	 	number of	 	number of	 	this Global	 	Signature of
	 	 	Treasury Units	 	Treasury Units	 	Certificate	 	authorized
	 	 	evidenced by	 	evidenced by	 	following such	 	signatory of
	 	 	the Global	 	the Global	 	decrease or	 	Purchase
	Date	 	Certificate	 	Certificate	 	increase	 	Contract Agent

 

B-13

 

EXHIBIT C

INSTRUCTION TO PURCHASE CONTRACT AGENT FROM HOLDER

(To Create Treasury Units or Corporate Units)

The Bank of New York Mellon,

as Purchase Contract Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: [Corporate Units] [Treasury Units] of PPL Corporation, a Pennsylvania corporation (the
“Company”).

The undersigned Holder hereby notifies you that it has deposited with The Bank of New York
Mellon, as Collateral Agent, for credit to the Collateral Account, $[ ] Value of [Notes]
[Treasury Securities] in exchange for an equal Value of [Pledged Treasury Securities] [Notes
underlying Pledged Applicable Ownership Interests in Notes] held in the Collateral Account, in
accordance with the Purchase Contract and Pledge Agreement, dated as of April 15, 2011 (the
“Agreement”; unless otherwise defined herein, terms defined in the Agreement are used herein as
defined therein), between the Company and The Bank of New York Mellon, as Collateral Agent, as
Custodial Agent, as Securities Intermediary, as Purchase Contract Agent and as attorney-in-fact for
the holders of Corporate Units and Treasury Units from time to time. The undersigned Holder has
paid all applicable fees and expenses relating to such exchange. The undersigned Holder hereby
instructs you to instruct the Collateral Agent to release to you on behalf of the undersigned
Holder the [Notes underlying Pledged Applicable Ownership Interests in Notes] [Pledged Treasury
Securities] related to such [Corporate Units] [Treasury Units].

	 	 	 	 	 
	Dated:

	 	Signature	 	 
	 
	 	 	 	 
	 

	 	Signature Guarantee:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Please print name and address of Registered Holder:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	Name:

	 	Social Security or other Taxpayer Identification Number	 	 
	 
	 	 	 	 
	 

Address

	 	 	 	 

 

C-1

 

EXHIBIT D

NOTICE FROM PURCHASE CONTRACT AGENT

TO HOLDERS UPON TERMINATION EVENT

(Transfer of Collateral upon Occurrence of a Termination Event)

[HOLDER]

Attention:

Telecopy:

Re: [Corporate Units] [Treasury Units] of PPL Corporation Company, a Pennsylvania corporation
(the “Company”).

Please refer to the Purchase Contract and Pledge Agreement, dated as of April 15, 2011 (the
“Purchase Contract and Pledge Agreement”; unless otherwise defined herein, terms defined in the
Purchase Contract and Pledge Agreement are used herein as defined therein), between the Company and
The Bank of New York Mellon, as Collateral Agent, as Custodial Agent, as Securities Intermediary,
as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units and Treasury
Units from time to time.

We hereby notify you that a Termination Event has occurred and that [the Notes underlying the
Pledged Applicable Ownership Interests in Notes] [the Pledged Applicable Ownership Interests in the
Treasury Portfolio] [the Treasury Securities] comprising a portion of your ownership interest in
[Corporate Units] [Treasury Units] have been released and are being held by us for your account
pending receipt of transfer instructions with respect to such [Notes] [Pledged Applicable Ownership
Interests in the Treasury Portfolio] [Pledged Treasury Securities] (the “Released Securities”).

Pursuant to Section 3.15 of the Purchase Contract and Pledge Agreement, we hereby request
written transfer instructions with respect to the Released Securities. Upon receipt of your
instructions and upon transfer to us of your [Corporate Units] [Treasury Units] effected through
book-entry or by delivery to us of your [Corporate Units Certificate] [Treasury Units Certificate],
we shall transfer the Released Securities by book-entry transfer or other appropriate procedures,
in accordance with your instructions. In the event you fail to effect such transfer or delivery,
the Released Securities and any distributions thereon, shall be held in our name, or a nominee in
trust for your benefit, until such time as such [Corporate Units] [Treasury Units] are transferred
or your [Corporate Units Certificate] [Treasury Units Certificate] is surrendered or satisfactory
evidence is provided that such [Corporate Units Certificate] [Treasury Units Certificate] has been
destroyed, lost or stolen, together with any indemnification that we or the Company may require.

	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 	 	 	 	The Bank of New York Mellon,

as Purchase Contract Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 	 	Authorized Signatory	 	 

 

D-1

 

EXHIBIT E

NOTICE TO SETTLE WITH CASH

The Bank of New York Mellon,

as Purchase Contract Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Corporate Units of PPL Corporation, a Pennsylvania corporation (the “Company”).

The undersigned Holder hereby irrevocably notifies you in accordance with Section 5.03 of the
Purchase Contract and Pledge Agreement, dated as of April 15, 2011 (the “Purchase Contract and
Pledge Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract and
Pledge Agreement are used herein as defined therein), between the Company and The Bank of New York
Mellon, as Collateral Agent, as Custodial Agent, as Securities Intermediary, as Purchase Contract
Agent and as attorney-in-fact for the Holders of the Corporate Units and Treasury Units from time
to time, that such Holder has elected to pay to the Securities Intermediary for deposit in the
Collateral Account, prior to 5:00 p.m. (New York City time) on the first Business Day immediately
preceding the first day of the Final Remarketing Period (in lawful money of the United States by
certified or cashiers’ check or wire transfer, in immediately available funds payable to or upon
the order of the Securities Intermediary), $[ ] as the Purchase Price for the shares of Common
Stock issuable to such Holder by the Company with respect to [ ] Purchase Contracts on the
Purchase Contract Settlement Date. The undersigned Holder hereby instructs you to notify promptly
the Collateral Agent of the undersigned Holders’ election to make such Cash Settlement with respect
to the Purchase Contracts related to such Holder’s Corporate Units.

	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Signature:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Signature Guarantee:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

Please print name and address of Registered Holder:

 

E-1

 

EXHIBIT F

INSTRUCTION

FROM PURCHASE CONTRACT AGENT

TO COLLATERAL AGENT

(Creation of Treasury Units)

The Bank of New York Mellon,

as Collateral Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Corporate Units of PPL Corporation (the “Company”).

Please refer to the Purchase Contract and Pledge Agreement, dated as of April 15, 2011 (the
“Agreement”), among the Company and The Bank of New York Mellon, as Collateral Agent, as Custodial
Agent, as Securities Intermediary, as Purchase Contract Agent and as attorney-in-fact for the
holders of Corporate Units and Treasury Units from time to time. Capitalized terms used herein but
not defined shall have the meaning set forth in the Agreement.

We hereby notify you in accordance with Section 3.13 of the Agreement that the holder of
securities named below (the “Holder”) has elected to substitute $[ ] Value of Treasury Securities
or security entitlements with respect thereto in exchange for an equal Value of Notes underlying
Pledged Applicable Ownership Interests in Notes relating to [ ] Corporate Units and has delivered
to the undersigned a notice stating that the Holder has Transferred such Treasury Securities or
security entitlements with respect thereto to the Collateral Agent, for credit to the Collateral
Account.

We hereby request that you instruct the Collateral Agent, upon confirmation that such Treasury
Securities or security entitlements thereto have been credited to the Collateral Account, to
release to the undersigned an equal Value of Notes underlying Pledged Applicable Ownership
Interests in Notes or security entitlements with respect thereto related to [ ] Corporate Units of
such Holder in accordance with Section 3.13 of the Agreement.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 	 	The Bank of New York Mellon,

as Purchase Contract Agent and as 

attorney-in-fact of the Holders from

time to time of the Units
	 
	 	 	 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:	 	 
	 	 	Authorized Signatory	 	 

 

F-1

 

	 	 	 	 	 

Please print name and address of Holder electing to substitute Treasury Securities or security
entitlements with respect thereto for the Notes underlying Pledged Applicable Ownership Interests
in Notes:

	 	 	 	 	 
	 
	 	 
	 

Name:

	 	 

Social Security or other Taxpayer Identification Number, if any
	 	 
	 
	 	 	 	 
	 

Address:

	 	 	 	 

 

F-2

 

EXHIBIT G

INSTRUCTION

FROM COLLATERAL AGENT

TO SECURITIES INTERMEDIARY

(Creation of Treasury Units)

The Bank of New York Mellon,

as Securities Intermediary

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Corporate Units of PPL Corporation (the “Company”).

The securities account of The Bank of New York Mellon, as Collateral Agent, maintained on the
books of the Securities Intermediary and designated “PPL Corporation, Collateral Account (No. 2)”
(the “Collateral Account”).

Please refer to the Purchase Contract and Pledge Agreement, dated as of April 15, 2011 (the
“Agreement”), between the Company and The Bank of New York Mellon, as Collateral Agent, as
Custodial Agent, as Securities Intermediary, as Purchase Contract Agent and as attorney-in-fact for
the holders of Corporate Units and Treasury Units from time to time. Capitalized terms used herein
but not defined shall have the meaning set forth in the Agreement.

When you have confirmed that $[ ] Value of Treasury Securities or security entitlements with
respect thereto has been credited to the Collateral Account by or for the benefit of [ ], as
Holder of Corporate Units (the “Holder”), you are hereby instructed to release from the Collateral
Account an equal Value of Notes underlying Pledged Applicable Ownership Interests in Notes or
security entitlements with respect thereto relating to Corporate Units of the Holder by Transfer to
the Purchase Contract Agent.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	The Bank of New York Mellon,
as Collateral Agent

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Authorized Signatory	 	 
	 

 

G-1

 

EXHIBIT H

INSTRUCTION

FROM PURCHASE CONTRACT AGENT

TO COLLATERAL AGENT

(Recreation of Corporate Units)

The Bank of New York Mellon,

as Collateral Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Treasury Units of PPL Corporation (the “Company”).

Please refer to the Purchase Contract and Pledge Agreement dated as of April 15, 2011 (the
“Agreement”), between the Company and The Bank of New York Mellon, as Collateral Agent, as
Custodial Agent, as Securities Intermediary, as Purchase Contract Agent and as attorney-in-fact for
the holders of Corporate Units and Treasury Units from time to time. Capitalized terms used herein
but not defined shall have the meaning set forth in the Agreement.

We hereby notify you in accordance with Section 3.14 of the Agreement that the holder of
securities named below (the “Holder”) has elected to substitute $[ ] Value of Notes or security
entitlements with respect thereto in exchange for $[ ] Value of Pledged Treasury Securities
relating to Treasury Units and has delivered to the undersigned a notice stating that the Holder
has Transferred such Notes or security entitlements with respect thereto to the Collateral Agent,
for credit to the Collateral Account.

We hereby request that you instruct the Collateral Agent, upon confirmation that such Notes or
security entitlements with respect thereto have been credited to the Collateral Account, to release
to the undersigned $[ ] Value of Treasury Securities or security entitlements with respect thereto
related to [ ] Treasury Units of such Holder in accordance with Section 3.14 of the Agreement.

	 	 	 
	 

	 	The Bank of New York Mellon,

as Purchase Contract Agent
	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Dated:

	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 	 	Authorized Signatory	 	 

 

H-1

 

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

	 	 	 
	 
	 	 
	 

	 	 
	Name:

	 	Social Security or other Taxpayer Identification Number, if any
	 
	 	 
	 

Address:

	 	 

 

H-2

 

EXHIBIT I

INSTRUCTION

FROM COLLATERAL AGENT

TO SECURITIES INTERMEDIARY

(Recreation of Corporate Units)

The Bank of New York Mellon,

as Security Intermediary

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Treasury Units of PPL Corporation (the “Company”).

The securities account of The Bank of New York Mellon, as Collateral Agent, maintained on the
books of the Securities Intermediary and designated “PPL Corporation, Collateral Account (No. 2)”
(the “Collateral Account”).

Please refer to the Purchase Contract and Pledge Agreement dated as of April 15, 2011 (the
“Agreement”), among the Company and The Bank of New York Mellon, as Collateral Agent, as Custodial
Agent, as Securities Intermediary, as Purchase Contract Agent and as attorney-in-fact for the
holders of Corporate Units and Treasury Units from time to time. Capitalized terms used herein but
not defined shall have the meaning set forth in the Agreement.

When you have confirmed that $[ ] Value of Notes or security entitlements with respect
thereto has been credited to the Collateral Account by or for the benefit of [ ], as Holder of
Treasury Units (the “Holder”), you are hereby instructed to release from the Collateral Account $[
] Value of Treasury Securities or security entitlements thereto by Transfer to the Purchase
Contract Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	The Bank of New York Mellon,

     as Collateral Agent

	 	 
	Dated:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory	 	 

 

I-1

 

EXHIBIT J

NOTICE TO SETTLE WITH CASH FROM PURCHASE CONTRACT

AGENT TO COLLATERAL AGENT

(Cash Settlement Amounts)

The Bank of New York Mellon,

as Collateral Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Corporate Units of PPL Corporation (the “Company”).

Please refer to the Purchase Contract and Pledge Agreement dated as of April 15, 2011 (the
"Agreement”), between the Company and The Bank of New York Mellon, as Collateral Agent, as
Custodial Agent, as Securities Intermediary, as Purchase Contract Agent and as attorney-in-fact for
the holders of Corporate Units and Treasury Units from time to time. Unless otherwise defined
herein, terms defined in the Agreement are used herein as defined therein.

In accordance with Section 5.03(a)(iv) of the Agreement, we hereby notify you that as of 5:00
p.m. (New York City time) on the first Business Day immediately preceding the first day of the
Final Remarketing Period, we have received (i) $[ ] in immediately available funds paid in an
aggregate amount equal to the Purchase Price due to the Company on the Purchase Contract Settlement
Date with respect to [ ] Corporate Units and (ii) based on the funds received set forth in clause
(i) above, an aggregate principal amount of $[ ] of Notes underlying Pledged Applicable Ownership
Interests in Notes are to be offered for purchase in each Remarketing during the Final Remarketing
Period.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	The Bank of New York Mellon,

     as Purchase Contract Agent	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory	 	 

 

J-1

 

EXHIBIT K

INSTRUCTION TO CUSTODIAL AGENT REGARDING REMARKETING

The Bank of New York Mellon,

as Custodial Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Notes Due 2019 of PPL Capital Funding Inc.

The undersigned hereby notifies you in accordance with Section 5.02(e) of the Purchase
Contract and Pledge Agreement, dated as of April 15, 2011 (the “Agreement”), between PPL
Corporation (the “Company”) and The Bank of New York Mellon, as Collateral Agent, as Custodial
Agent, as Securities Intermediary, as Purchase Contract Agent and as attorney-in-fact for the
holders of Corporate Units and Treasury Units from time to time, that the undersigned elects to
deliver $[ ] aggregate principal amount of Separate Notes for delivery to the Remarketing Agent(s)
prior to a Remarketing, other than during a Blackout Period, for remarketing pursuant to Section
5.02(e) of the Agreement. The undersigned will, upon request of the Remarketing Agent(s), execute
and deliver any additional documents deemed by the Remarketing Agent(s) or by the Company to be
necessary or desirable to complete the sale, assignment and transfer of the Separate Notes tendered
hereby. Capitalized terms used herein but not defined shall have the meaning set forth in the
Agreement.

The undersigned hereby instructs you, upon receipt of the Proceeds of a Successful Remarketing
from the Remarketing Agent(s), to deliver such Proceeds to the undersigned in accordance with the
instructions indicated herein under “Payment Instructions.” The undersigned hereby instructs you,
in the event of a Failed Remarketing, upon receipt of the Separate Notes tendered herewith from the
Remarketing Agent(s), to deliver such Separate Notes to the person(s) and the address(es) indicated
herein under “B. Delivery Instructions.”

With this notice, the undersigned hereby (i) represents and warrants that the undersigned has
full power and authority to tender, sell, assign and transfer the Separate Notes tendered hereby
and that the undersigned is the record owner of any Separate Notes tendered herewith in physical
form or a participant in The Depository Trust Company (“DTC”) and the Beneficial Owner of any
Separate Notes tendered herewith by book-entry transfer to your account at DTC, (ii) agrees to be
bound by the terms and conditions of Section 5.02 and Section 5.03, as applicable, of the Agreement
and (iii) acknowledges and agrees that after 5:00 p.m. (New York City time) on the Business Day
immediately preceding the first day of the Applicable Remarketing Period, such election shall
become an irrevocable election to have such Separate Notes remarketed in each Remarketing during
the Applicable Remarketing Period, and that the Separate Notes tendered herewith will only be
returned in the event of a Failed Remarketing.

 

K-1

 

	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	By:
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Signature Guarantee:            
                    
                    
                     
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Address
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Social Security or other Taxpayer

Identification Number, if any

A. PAYMENT INSTRUCTIONS

Proceeds of a Successful Remarketing should be paid by check in the name of the person(s) set forth
below and mailed to the address set forth below.

	 	 	 
	Name(s)
	 	 
	 

	 	 
	(Please Print)

	 
	 	 
	Address
	 	 
	 

	 	 
	(Please Print)

	 
	 	 
	 
	 
	 	 
	 
	(Zip Code)

	 
	 	 
	 
	(Tax Identification or Social Security Number)

B. DELIVERY INSTRUCTIONS

In the event of a Failed Remarketing, Notes which are in physical form should be delivered to the
person(s) set forth below and mailed to the address set forth below.

	 	 	 
	Name(s)
	 	 
	 

	 	 
	(Please Print)

	 
	 	 
	Address
	 	 
	 

	 	 
	(Please Print)

	 
	 	 
	 
	 
	 	 
	 
	(Zip Code)

	 
	 	 
	 
	(Tax Identification or Social Security Number)

 

K-2

 

In the event of a Failed Remarketing, Notes which are in book-entry form should be credited to the
account at The Depository Trust Company to the person(s) set forth below.

DTC Account Number:                                                             

Name of Account Party:                                                             

 

K-3

 

EXHIBIT L

INSTRUCTION TO CUSTODIAL AGENT REGARDING

WITHDRAWAL FROM REMARKETING

The Bank of New York Mellon,

as Custodial Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Notes Due 2019 of PPL Capital Funding Inc.

The undersigned hereby notifies you in accordance with Section 5.02(e) of the Purchase
Contract and Pledge Agreement, dated as of April 15, 2011 (the “Agreement”), among PPL Corporation
(the “Company”) and you, as Collateral Agent, Custodial Agent and Securities Intermediary, and The
Bank of New York Mellon, as Purchase Contract Agent and as attorney-in-fact for the holders of
Corporate Units and Treasury Units from time to time, that the undersigned elects to withdraw the
$[ ] aggregate principal amount of Separate Notes delivered to you for Remarketing pursuant to
Section 5.02(e) of the Agreement. The undersigned hereby instructs you to return such Separate
Notes to the person(s) and the address(es) indicated herein under “A. Delivery Instructions.”

With this notice, the Undersigned hereby agrees to be bound by the terms and conditions of
Section 5.02(e) of the Agreement. Capitalized terms used herein but not defined shall have the
meaning set forth in the Agreement.

	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	By:
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Signature Guarantee:             
                    
                    
                    
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Address
	 	 	 	 	 	Social Security or other Taxpayer

Identification Number, if any

A. DELIVERY INSTRUCTIONS

In the event of a withdrawal of Separate Notes from a Remarketing, Separate Notes which are in
physical form should be delivered to the person(s) set forth below and mailed to the address set
forth below.

 

L-1

 

	 	 	 
	Name(s)
	 	 
	 

	 	 
	(Please Print)

	 
	 	 
	Address
	 	 
	 

	 	 
	 
	 	 
	 
	(Please Print)

	 
	 	 
	 
	 
	 	 
	 
	(Zip Code)

	 
	 	 
	 
	(Tax Identification or Social Security Number)

In the event of a withdrawal of Separate Notes from a Remarketing, Separate Notes which are in
book-entry form should be credited to the account at The Depository Trust Company to the person(s)
set forth below.

DTC Account Number:                                                             

Name of Account Party:                                                             

 

L-2

 

EXHIBIT M

NOTICE TO SETTLE WITH CASH AFTER FAILED FINAL REMARKETING

The Bank of New York Mellon,

as Purchase Contract Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Corporate Units of PPL Corporation, a Pennsylvania corporation (the “Company”)

The undersigned Holder hereby irrevocably notifies you in accordance with Section 5.02(b)(viii) of
the Purchase Contract and Pledge Agreement, dated as of April 15, 2011 (the “Purchase Contract and
Pledge Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract and
Pledge Agreement are used herein as defined therein), among the Company and you, as Purchase
Contract Agent, as attorney-in-fact for the Holders of the Corporate Units, Collateral Agent,
Custodial Agent and Securities Intermediary, that such Holder has elected to pay to the Securities
Intermediary for deposit in the Collateral Account, on or prior to 5:00 p.m. (New York City time)
on the Business Day immediately preceding the Purchase Contract Settlement Date (in lawful money of
the United States by certified or cashiers check or wire transfer, in immediately available funds
payable to or upon the order of the Securities Intermediary), $[ ] as the Purchase Price for the
shares of Common Stock issuable to such Holder by the Company with respect to [ ] Purchase
Contracts on the Purchase Contract Settlement Date. The undersigned Holder hereby instructs you to
notify promptly the Collateral Agent of the undersigned Holders’ election to settle the Purchase
Contracts related to such Holder’s Corporate Units with separate cash.

Date:

Signature:

Signature Guarantee:

Please print name and address of Registered Holder:

 

M-1

 

EXHIBIT N

NOTICE

FROM PURCHASE CONTRACT AGENT

TO COLLATERAL AGENT

(Settlement with Separate Cash)

The Bank of New York Mellon,

as Collateral Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

	Re: 	 	Corporate Units of PPL Corporation, a Pennsylvania corporation
(the “Company”)

Please refer to the Purchase Contract and Pledge Agreement, dated as of April 15, 2011 (the
“Agreement”), among the Company, you, as Collateral Agent, as Securities Intermediary and as
Custodial Agent, and the undersigned, as Purchase Contract Agent and as attorney-in-fact for the
Holders of Corporate Units from time to time. Capitalized terms used herein but not defined shall
have the meaning set forth in the Agreement.

We hereby notify you in accordance with Section 5.02(b)(viii) of the Agreement that the holder of
Corporate Units named below (the “Holder”) has elected to settle the [ ] Purchase Contracts
related to its Pledged Applicable Ownership Interests in Notes with $[ ] of separate cash
prior to 5:00 p.m. (New York City time) on the second Business Day immediately preceding the
Purchase Contract Settlement Date (in lawful money of the United States by certified or cashiers
check or wire transfer, in immediately available funds payable to or upon the order of the
Securities Intermediary) and has delivered to the undersigned a notice to that effect.

We hereby request that you, upon confirmation that the Purchase Price has been paid by the Holder
to the Securities Intermediary in accordance with Section 5.02(b)(viii) of the Agreement in lieu of
exercise of such Holder’s Put Right, give us notice of the receipt of such payment and (A) promptly
invest the separate cash received in Permitted Investments consistent with the instructions of the
Company as provided in Section 5.03(a)(v) of the Agreement with respect to Cash Settlement, (B)
promptly release from the Pledge the Notes underlying the Applicable Ownership Interest in Notes
related to the Corporate Units as to which such Holder has paid such separate cash; and (C)
promptly Transfer all such Notes to us for distribution to such Holder, in each case free and clear
of the Pledge created by the Agreement.

	 	 	 
	Date:        
                   
                   
               ,

	 	The Bank of New York Mellon, as Purchase Contract Agent and as
attorney-in-fact of the Holders from time to time of the Units
	 
	 	 
	 

	 	By:
	 

	 	Name:
	 

	 	Title:
	 

	 	Authorized Signatory

Please print name and address of Holder electing to settle with separate cash:

	 	 	 
	Name:

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

 

N-1

 

EXHIBIT O

NOTICE OF SETTLEMENT WITH SEPARATE CASH FROM

SECURITIES INTERMEDIARY TO PURCHASE CONTRACT AGENT

(Settlement with Separate Cash)

The Bank of New York Mellon,

as Purchase Contract Agent

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Re: Corporate Units of PPL Corporation (the “Company”)

Please refer to the Purchase Contract and Pledge Agreement dated as of April 15, 2011 (the
“Agreement”), by and among you, the Company, and The Bank of New York Mellon, as Collateral Agent,
Custodial Agent and Securities Intermediary. Unless otherwise defined herein, terms defined in the
Agreement are used herein as defined therein.

In accordance with Section 5.02(b)(viii) of the Agreement, we hereby notify you that as of 5:00
p.m. (New York City time) on the Business Day immediately preceding May 1, 2014 (the “Purchase
Contract Settlement Date”), (i) we have received from [ ] $[ ] in immediately available funds
paid in an aggregate amount equal to the Purchase Price due to the Company on the Purchase Contract
Settlement Date with respect to [ ] Corporate Units and (ii) based on the funds received set forth
in clause (i) above, an aggregate principal amount of $[ ] of Notes underlying related Pledged
Applicable Ownership Interests in Notes are to be released from the Pledge and Transferred to you.

The Bank of New York Mellon,

as Securities Intermediary

Dated:

By:

 

O-1

 

EXHIBIT P

FORM OF REMARKETING AGREEMENT

[•]

The Bank of New York Mellon

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Ladies and Gentlemen:

This Agreement is dated as of [•] (the “Agreement”) by and among PPL Corporation, a
Pennsylvania corporation (the “Company”), PPL Capital Funding, Inc., a Delaware corporation and
wholly owned subsidiary of the Company (“PPL Capital Funding” and together with the Company, the
"Issuers”), and [•]1, as the reset agent and the remarketing agent[s] (the “Remarketing
Agent”), and The Bank of New York Mellon, a New York banking corporation, not individually but
solely as Purchase Contract Agent (the “Purchase Contract Agent”) and as attorney-in-fact of the
Holders of Purchase Contracts (as defined in the Purchase Contract and Pledge Agreement referred to
below), relating to the appointment of [•] to serve as Remarketing Agent with respect to the
Remarketing of the Notes.

The Company has also entered into: (i) a Purchase Contract and Pledge Agreement, dated as of
April 15, 2011 (the “Purchase Contract and Pledge Agreement”), among the Company, The Bank of New
York Mellon, as Collateral Agent, Custodial Agent and Securities Intermediary, Purchase Contract
Agent and attorney-in-fact of the Holders of the Purchase Contracts, and (ii) an Underwriting
Agreement, dated April 11, 2011 (the “Underwriting Agreement”), among the Company, PPL Capital
Funding and Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, as Representatives of the several Underwriters named therein.

The Company issued an aggregate of 19,550,000 Equity Units, each of which initially consist of
a Purchase Contract and a 5% undivided beneficial ownership interest in PPL Capital Funding’s 4.32%
Junior Subordinated Notes due 2019 (the “Notes”) issued under the Subordinated Indenture dated as
of March 1, 2007 (the “Base Indenture”) among the Company, PPL Capital Funding and The Bank of New
York Mellon (formerly known as The Bank of New York), as Trustee (the “Trustee”), as amended and
supplemented by the Supplemental Indenture No. 3 dated as of April 15, 2011 (the “Supplemental
Indenture,” and together with the Base Indenture, the “Indenture”). The Notes that form part of the
Corporate Units are pledged pursuant to the Purchase Contract and Pledge Agreement to secure a
Corporate Units holder’s obligation under the related Purchase Contracts on the Purchase Contract
Settlement Date.

 

	 	 	 
	1	 	Insert one or more Remarketing Agents to be designated by the Company.

 

P-1

 

The terms and conditions under which the Remarketing will occur are provided for in the
Indenture, the Purchase Contract and Pledge Agreement and as provided for herein.

Section 1. Definitions.

(a) Capitalized terms used and not defined in this Agreement shall have the meanings set forth
in the Purchase Contract and Pledge Agreement.

(b) As used in this Agreement, the following terms have the following meanings:

“Agreement” has the meaning specified in the first paragraph of this Remarketing Agreement.

“Base Indenture” has the meaning specified in the third paragraph of this Remarketing
Agreement.

“Commencement Date” has the meaning specified in Section 3.

“Commission” means the Securities and Exchange Commission.

“Company” has the meaning specified in the first paragraph of this Remarketing Agreement.

“General Disclosure Package” means the Registration Statement or any amendment thereof and any
Preliminary Prospectus taken together with any Issuer Free Writing Prospectus used at or prior to
the time of the first sale.

“Issuers” has the meaning specified in the first paragraph of this Remarketing Agreement.

“Issuer Free Writing Prospectus” means an issuer free writing prospectus, as defined in Rule
433 under the Securities Act relating to the Remarketed Notes.

“Issuer General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is
intended for general distribution to prospective investors.

“Issuers” has the meaning specified in the first paragraph of this Remarketing Agreement.

“Material Adverse Change” has the meaning specified in Section 6(b) of this Remarketing
Agreement.

“Notes” has the meaning specified in the third paragraph of this Remarketing Agreement.

“PPL Capital Funding” has the meaning specified in the first paragraph of this Remarketing
Agreement.

“Preliminary Prospectus” means any preliminary prospectus relating to the Remarketed Notes
included in the Registration Statement, including the documents incorporated by reference therein
as of the date of such Preliminary Prospectus.

 

P-2

 

“Prospectus” means the prospectus relating to the Remarketed Notes, in the form in which first
filed, or transmitted for filing, with the Commission after the effective date of the Registration
Statement pursuant to Rule 424(b) under the Securities Act, including the documents incorporated by
reference therein as of the date of such Prospectus; and any reference to any amendment or
supplement to such Prospectus shall be deemed to refer to and include any documents filed after the
date of such Prospectus, under the Exchange Act, and incorporated by reference in such Prospectus.

“Purchase Contract Agent” has the meaning specified in the first paragraph of this Agreement.

“Purchase Contract and Pledge Agreement” has the meaning specified in the second paragraph of
this Agreement.

“Registration Statement” means a registration statement under the Securities Act prepared by
the Company covering, inter alia, the Remarketing of the Remarketed Notes pursuant to Section 5(a)
hereunder, including all exhibits thereto and the documents incorporated by reference in the
Prospectus and any post-effective amendments thereto.

“Remarketed Notes” means, with respect to all Remarketings during any Applicable Remarketing
Period, the aggregate principal amount of Notes underlying the Pledged Applicable Ownership
Interests in Notes and the Separate Notes, if any, subject to Remarketing as identified to the
Remarketing Agent by the Purchase Contract Agent and the Custodial Agent, respectively, in the case
of an Optional Remarketing, by 11:00 a.m. New York City time, on the Business Day immediately prior
to the first day of the Optional Remarketing Period, or in the case of a Final Remarketing,
promptly after 5:00 p.m., New York City time, on the Business Day immediately prior to the first
day of the Final Remarketing Period in accordance with the Purchase Contract and Pledge Agreement
and shall include: (a) the Notes underlying the Pledged Applicable Ownership Interests in Notes of
the Holders of Corporate Units who have not effected a Collateral Substitution, Early Settlement or
a Fundamental Change Early Settlement in accordance with the Purchase Contract and Pledge
Agreement, and, in the case of a Final Remarketing, Holders of Corporate Units who have not
notified the Purchase Contract Agent prior to 5:00 p.m., New York City time, on the second Business
Day immediately preceding the first day of the Final Remarketing Period (or in the case of a Failed
Final Remarketing, on the second Business Day immediately preceding the Purchase Contract
Settlement Date) of their intention to effect a Cash Settlement of the related Purchase Contracts
pursuant to the terms of the Purchase Contract and Pledge Agreement or who have so notified the
Purchase Contract Agent but failed to make the required cash payment prior to 5:00 p.m., New York
City time, on the first Business Day immediately preceding the first day of the Final Remarketing
Period (or in the case of a Failed Final Remarketing, on the first Business Day immediately
preceding the Purchase Contract Settlement Date), and (b) the Separate Notes of the holders of
Separate Notes, if any, who have elected to have their Separate Notes remarketed in such
Remarketing pursuant to the terms of the Purchase Contract and Pledge Agreement.

“Remarketing Agent” has the meaning specified in the first paragraph of this Agreement.

“Remarketing Fee” has the meaning specified in Section 4.

 

P-3

 

“Remarketing Materials” means the 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.

“Representation Date” has the meaning specified in Section 3.

“Reset Rate” has the meaning specified in Section 2(d).

“Securities” has the meaning specified in Section 10.

“Statutory Prospectus” as of any time means the prospectus relating to the Remarketed Notes
that is included in the Registration Statement immediately prior to that time, including any
document incorporated by reference therein and any preliminary or other prospectus deemed to be a
part thereof.

“Supplemental Indenture” has the meaning specified in the third paragraph of this Remarketing
Agreement.

“Transaction Documents” means this Agreement, the Purchase Contract and Pledge Agreement and
the Indenture, in each case as amended or supplemented from time to time.

“Trustee” has the meaning specified in the third paragraph of this Remarketing Agreement.

“Underwriting Agreement” has the meaning specified in the second paragraph of this Agreement.

Section 2. Appointment and Obligations of the Remarketing Agent.

(a) The Company and PPL Capital Funding hereby appoint [•] as the exclusive Remarketing Agent,
and, subject to the terms and conditions set forth herein, [•] hereby accepts appointment as
Remarketing Agent, for the purpose of (i) remarketing the Remarketed Notes on behalf of the holders
thereof, (ii) determining, in consultation with the Company and PPL Capital Funding, in the manner
provided for herein and in the Purchase Contract and Pledge Agreement and the Indenture, the Reset
Rate for the Notes, and (iii) performing such other duties as are assigned to the Remarketing Agent
in the Transaction Documents.

(b) Unless a Termination Event has occurred prior to such date, if the Company elects to
conduct an Optional Remarketing during an Optional Remarketing Period selected by the Company
pursuant to the Purchase Contract and Pledge Agreement, the Remarketing Agent shall use its
reasonable efforts to remarket the Remarketed Notes at the applicable Remarketing Price.

(c) If there is no Successful Optional Remarketing during any Optional Remarketing Period or
no Optional Remarketing occurs on any Optional Remarketing Date, if any, and unless a Termination
Event has occurred prior to such date, on each Remarketing Date in the Final Remarketing Period,
the Remarketing Agent shall use its reasonable efforts to remarket the Remarketed Notes at the
applicable Remarketing Price. It is understood and agreed that the Remarketing on any Remarketing Date in the Final Remarketing Period will be considered
successful if the resulting proceeds are at least equal to the applicable Remarketing Price. The
Company has the right to postpone the Final Remarketing in the Company’s absolute discretion on
any day prior to the last five Business Days of the Final Remarketing Period.

 

P-4

 

(d) In connection with each Remarketing, the Remarketing Agent shall determine, in
consultation with the Company and PPL Capital Funding, the terms of the Remarketed Notes for each
tranche, including those which may be modified in connection with the Remarketing pursuant to the
Indenture, including the election whether to modify the optional redemption provisions, interest
payment dates and/or the rate per annum, rounded to the nearest one-thousandth (0.001) of one
percent per annum, determined on a fixed or floating rate basis, that the Remarketed Notes should
bear (the “Reset Rate”) in order for the Remarketed Notes to have an aggregate market value equal
to at least the applicable Remarketing Price and that in the sole reasonable discretion of the
Remarketing Agent will enable it to remarket all of the Remarketed Notes of such tranche at no less
than the applicable Remarketing Price in such Remarketing; provided that such rate shall not exceed
the maximum interest rate permitted by applicable law.

(e) If, by 4:00 p.m., New York City time, on the applicable Remarketing Date, (i) the
Remarketing Agent is unable to remarket all of the Remarketed Notes, at the applicable Remarketing
Price pursuant to the terms and conditions hereof or (ii) the Remarketing did not occur on such
Remarketing Date because one of the conditions set forth in Section 6 hereof was not satisfied, a
Failed Remarketing shall be deemed to have occurred, and the Remarketing Agent shall advise by
telephone (and promptly deliver a notice in writing thereafter) the Depositary, the Purchase
Contract Agent, the Collateral Agent and the Company of any such Failed Remarketing. Whether or not
there has been a Failed Remarketing will be determined in the sole reasonable discretion of the
Remarketing Agent. In the event of a Failed Remarketing, the applicable interest rate on the Notes
will not be reset, and will continue to be the Coupon Rate set forth in the Supplemental Indenture.

(f) In the event of a Successful Remarketing, by approximately 4:30 p.m., New York City time,
on the applicable Remarketing Date, the Remarketing Agent shall advise, by telephone, as to each
tranche of Remarketed Notes:

(i) the Depositary, the Purchase Contract Agent, the Trustee and the Company (and
promptly deliver a notice in writing thereafter) of the Reset Rate, interest payment dates,
maturity date and optional redemption terms, if any, determined by the Remarketing Agent in
such Remarketing and the aggregate principal amount of Remarketed Notes sold in such
Remarketing;

(ii) each purchaser (or the Depositary Participant thereof) of Remarketed Notes of the
Reset Rate, interest payment dates, maturity date, and optional redemption terms, if any,
and the aggregate principal amount of Remarketed Notes such purchaser is to purchase;

(iii) each such purchaser (if other than a Depositary Participant) to give instructions
to its Depositary Participant to pay the purchase price on the Remarketing Settlement Date in same day funds against delivery of the Remarketed Notes purchased
through the facilities of the Depositary; and

 

P-5

 

(iv) each such purchaser (or Depositary Participant thereof) that the Remarketed Notes
will not be delivered until the Remarketing Settlement Date and that if such purchaser
wishes to trade the Remarketed Notes that it has purchased prior to the third Business Day
preceding the Remarketing Settlement Date, such purchaser will have to specify an
alternative settlement cycle at the time of any such trade to prevent failed settlement.

The Remarketing Agent shall also, if required by the Securities Act, deliver, in conformity
with the requirements of the Securities Act, to each purchaser a Prospectus in connection with the
Remarketing.

(g) The proceeds from a Successful Remarketing (i) with respect to the Notes underlying the
Applicable Ownership Interests in Notes that are components of the Corporate Units, shall be
applied in accordance with Section 5.02, of the Purchase Contract and Pledge Agreement and (ii)
with respect to the Separate Notes, shall be applied in accordance with Section 5.02, of the
Purchase Contract and Pledge Agreement.

(h) It is understood and agreed that the Remarketing Agent shall not have any obligation
whatsoever to purchase any Remarketed Notes, whether in the Remarketing or otherwise, and shall in
no way be obligated to provide funds to make payment upon tender of Remarketed Notes for
Remarketing or to otherwise expend or risk its own funds or incur or to be exposed to financial
liability in the performance of its duties under this Agreement. Neither the Issuers nor the
Remarketing Agent shall be obligated in any case to provide funds to make payment upon tender of
the Remarketed Notes for Remarketing.

Section 3. Representations And Warranties of the Issuers.

The Issuers jointly and severally represent and warrant (i) on and as of the date any
Remarketing Materials are first distributed in connection with the Remarketing (the “Commencement
Date”), (ii) at the first time of sale of the Remarketed Notes during the Applicable Remarketing
Period and (iii) on and as of the Remarketing Settlement Date (in each case a “Representation
Date”), that:

(a) This Agreement has been duly authorized, executed and delivered by the Issuers,
constitutes a valid and binding obligation of the Issuers, enforceable against the Issuers in
accordance with its terms, except to the extent enforceability may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or other similar laws of general
applicability relating to or affecting the enforcement of creditors’ rights and by the effect of
general principles of equity (regardless of whether enforceability is considered in a proceeding in
equity or at law) and except that rights to indemnification hereunder may be limited by federal or
state securities laws or public policy.

(b) Each of the representations and warranties of the Issuers as set forth in Section 2 of the
Underwriting Agreement is true and correct as if made on each of the dates specified above;

 

P-6

 

provided that for purposes of this Section 3(b), any reference in such sections of the
Underwriting Agreement to (i) the “Registration Statement,” “Statutory Prospectus,” “Issuer Free
Writing Prospectus,” “Preliminary Prospectus,” the “Prospectus,” the “General Disclosure Package”
shall be deemed to refer to such terms as defined herein, (ii) the “Closing Date” shall be deemed
to refer to the Remarketing Settlement Date, (iii) “Applicable Time” shall be deemed to refer to
the time immediately prior to the time of the first sale of Remarketed Notes to investors during
the applicable Remarketing Period; (iv) the “Securities” shall be deemed to refer to the Remarketed
Notes, (v) “Agreement” shall be deemed to refer to this Agreement and (vi) “Underwriters” or
“Representatives” shall be deemed to refer to the Remarketing Agent.

(c) The Remarketed Notes have been duly authorized and when duly executed, authenticated,
issued and delivered in accordance with the Indenture, will constitute valid and binding
obligations of the Issuers, enforceable in accordance with their terms, except to the extent
enforceability may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or other similar laws of general applicability relating to or affecting the enforcement
of creditors’ rights and by the effect of general principles of equity (regardless of whether
enforceability is considered in a proceeding in equity or at law) and will be entitled to the
benefits of the Indenture.

(d) The Remarketed Notes and the Indenture conform in all material respects to the description
thereof contained in the General Disclosure Package and the Prospectus, if any.

(e) No default or an event of default, and no event that with the passage of time or the
giving of notice or both would become an event of default, shall occur and be continuing, under any
of the Transaction Documents.

Section 4. Fees.

In the event of a Successful Remarketing of the Remarketed Notes, the Company shall pay the
Remarketing Agent a remarketing fee to be agreed upon in writing by the Company and the Remarketing
Agent prior to any such Remarketing (the “Remarketing Fee”).

Section 5. Covenants of the Issuers.

The Issuers covenant and agree as follows:

(a) If and to the extent the Remarketed Notes are required (in the view of counsel, which need
not be in the form of a written opinion, for either the Remarketing Agent or the Issuers) to be
registered under the Securities Act as in effect at the time of the Remarketing, the Issuers shall:

(i) prepare the Registration Statement and the Prospectus, in a form approved by the
Remarketing Agent, file any such Prospectus pursuant to the Securities Act within the period
required by the Securities Act and the rules and regulations thereunder and use commercially
reasonable efforts to cause the Registration Statement to be declared effective by the
Commission prior to the second Business Day immediately preceding the applicable Remarketing
Date;

 

P-7

 

(ii) file promptly with the Commission any amendment to the Registration Statement or
the Prospectus or any supplement to the Prospectus that may, in the reasonable judgment of
the Issuers or the Remarketing Agent, be required by the Securities Act or requested by the
Commission;

(iii) 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;

(iv) file promptly all reports and any definitive proxy or information statements
required to be filed by the Issuers 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 Notes;

(v) file all Issuer Free Writing Prospectuses required to be filed by the Issuers with
the Commission pursuant to Rule 433(d) under the Securities Act;

(vi) 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 Preliminary Prospectus or the Prospectus, of the suspension of the qualification
of any of the Remarketed Notes 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 Preliminary Prospectus or any Prospectus or
suspending any such qualification, to use promptly every reasonable effort to obtain its
withdrawal;

(vii) furnish promptly to the Remarketing Agent such copies of the following documents
as the Remarketing Agent shall reasonably request: (a) conformed copies of the Registration
Statement as originally filed with the Commission and each amendment thereto (in each case
excluding exhibits); (b) the Preliminary Prospectus and any amended or supplemented
Preliminary Prospectus; (c) the Prospectus and any amended or supplemented Prospectus; and
(d) any document incorporated by reference in the Prospectus (excluding exhibits thereto);
and, if at any time when delivery of a prospectus (or in lieu thereof, the notice referred
to in Rule 173(a) under the Securities Act) is required in connection with the Remarketing,
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 (or in lieu thereof, the
notice referred to in Rule 173(a) under the Securities Act) 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 that will correct such statement or omission or effect such compliance;

 

P-8

 

(viii) during the time between the applicable Commencement Date and the Remarketing
Settlement Date, prior to filing with the Commission (a) any amendment to the Registration
Statement or supplement to the Prospectus or (b) any Prospectus pursuant to Rule 424 under
the Securities Act, furnish a copy thereof to the Remarketing Agent; and not file any such
amendment or supplement that shall be reasonably disapproved by the Remarketing Agent;

(ix) as soon as practicable, but in any event not later than eighteen months, after the
date of a Successful Remarketing, to make “generally available to its security holders” an
“earnings statement” of the Issuers complying with (which need not be audited) Section 11(a)
of the Securities Act and the rules and regulations thereunder (including, at the option of
the Issuers, Rule 158 under the Securities Act). The terms “generally available to its
security holders” and “earnings statement” shall have the meanings set forth in Rule 158;
and

(x) take such action as the Remarketing Agent may reasonably request in order to
qualify the Remarketed Notes for offer and sale under the securities or “blue sky” laws of
such jurisdictions as the Remarketing Agent may reasonably request; provided that in no
event shall the Issuers be required to qualify as a foreign corporation or to file a general
consent to service of process in any jurisdiction.

(b) The Company shall pay: (i) the costs incident to the preparation and printing of the
Registration Statement, if any, any Preliminary Prospectus, any Issuer Free Writing Prospectus, any
Prospectus and any other Remarketing Materials and any amendments or supplements thereto; (ii) the
costs of distributing the Registration Statement, if any, any Prospectus and any other Remarketing
Materials and any amendments or supplements thereto; (iii) the cost of printing, word-processing or
reproducing this Agreement and any documents in connection with the offering, purchase, sale and
delivery of the Remarketed Notes; (iv) any fees and expenses of qualifying the Remarketed Notes
under the securities laws of the several jurisdictions as provided in Section 5(a)(x) and of
preparing, printing and distributing a Blue Sky Memorandum, if any (including any related
reasonable fees and expenses of counsel to the Remarketing Agent); (v) any filing fees incident to
any required review and clearance by the Financial Industry Regulatory Authority (“FINRA”) of the
terms of the sale of the Remarketed Notes; (vi) all other costs and expenses incident to the
performance of the obligations of the Issuers hereunder and the Remarketing Agent hereunder; and
(vii) the reasonable fees and expenses of counsel to the Remarketing Agent in connection with its
duties hereunder.

(c) The Issuers shall furnish the Remarketing Agent with such information and documents as the
Remarketing Agent may reasonably request in connection with the transactions contemplated hereby,
and to make reasonably available to the Remarketing Agent and any accountant, attorney or other
advisor retained by the Remarketing Agent such information that parties would customarily require in connection with a due diligence investigation conducted
in accordance with applicable securities laws and to cause the Issuers’ officers, directors,
employees and accountants to participate in all such discussions and to supply all such information
reasonably requested by any such Person in connection with such investigation.

 

P-9

 

(d) At the written request of the Remarketing Agent, between the applicable Commencement Date
and the applicable Remarketing Settlement Date, the Issuers will not, without the prior written
consent of the Remarketing Agent (which consent may be withheld at the reasonable discretion of the
Remarketing Agent), directly or indirectly, sell, offer, contract or grant any option to sell,
transfer or establish an open “put equivalent position” within the meaning of Rule 16a-1(h) under
the Exchange Act, or otherwise dispose of or transfer, or announce the offering of, or file any
registration statement under the Securities Act in respect of, any debt securities of the Issuers
similar to the Remarketed Notes or securities exchangeable for or convertible into debt securities
similar to the Remarketed Notes.

(e) Each of the Company and PPL Funding Capital represents and agrees that, unless it obtains
the prior consent of the Remarketing Agent, and the Remarketing Agent represents and agrees that,
unless it obtains the prior consent of the Issuers, it has not made and will not make any offer
relating to the Remarketed Notes that would constitute an Issuer Free Writing Prospectus, or that
would otherwise constitute a “free writing prospectus,” as defined in Rule 405 of the Act, required
to be filed with the Commission. Any such free writing prospectus consented to in writing by the
Issuers and the Remarketing Agent is hereinafter referred to as a “Permitted Free Writing
Prospectus”. Each of the Company and PPL Funding Capital represents that it has treated and agrees
that it will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,”
as defined in Rule 433 of the Act, and has complied and will comply with the requirements of Rules
164 and 433 of the Act applicable to any Permitted Free Writing Prospectus, including timely filing
with the Commission where required, legending and record keeping.

(f) The Issuers shall prepare a final term sheet relating to the Remarketed Notes, containing
only information that describes the final terms of the Remarketed Notes after providing the
Remarketing Agent and its legal counsel with a reasonable opportunity to review and comment on such
final term sheet (such final term sheet to be in form and substance as last reviewed by the
Remarketing Agent and the Issuers), and will file such final term sheet within the period required
by Rule 433(d) of the Act following the date such final terms have been established for the
Remarketed Notes. Any such final term sheet is an Issuer Free Writing Prospectus and a Permitted
Free Writing Prospectus for purposes of this Agreement.

Section 6. Conditions To The Remarketing Agent’s Obligations.

The obligations of the Remarketing Agent hereunder shall be subject to the following
conditions:

(a) The Prospectus, and any supplement thereto, has been filed in the manner and within the
time period required by Rule 424(b); the Issuer Free Writing Prospectus, if any, and any other
material required to be filed by the Company pursuant to Rule 433(d) under the Securities Act,
shall have been timely filed with the Commission within the applicable time periods prescribed for such filings by Rule 433; the Company has paid the fees required by the
Commission relating to the Remarketed Notes within the time required by Rule 456(b)(1) without
regard to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r); and no stop
order suspending the effectiveness of the Registration Statement or any notice objecting to its use
shall have been issued and no proceedings for that purpose shall have been instituted or
threatened.

 

P-10

 

(b) During the period of time between the applicable Commencement Date and the Remarketing
Settlement Date, there shall not have occurred (i) any material adverse change not contemplated by
the Prospectus (as it exists on the date hereof), or any development that could reasonably be
expected to result in a material adverse change, in or affecting particularly, the business or
properties of the Company or PPL Capital Funding (such change or development, “Material Adverse
Change”) which, in the Remarketing Agent’s judgment, makes it impractical and inadvisable to
proceed with completion of a remarketing; (ii) any suspension or limitation of trading in
securities generally on the New York Stock Exchange, or any setting of minimum prices for trading
on such exchange, or any suspension of trading of any securities of the Company or PPL Capital
Funding on any exchange or in the over-the-counter market; (iii) a general banking moratorium
declared by federal or New York authorities or a material disruption in securities settlement,
payment or clearance services in the United States; (iv) any outbreak or escalation of major
hostilities in which the United States is involved, any declaration of war by Congress or any other
substantial national or international calamity or emergency if, in the Remarket Agent’s reasonable
judgment, the effect of any such outbreak, escalation, declaration, calamity or emergency makes it
impractical and inadvisable to proceed with completion of a Remarketing.

(c) The representations and warranties of the Issuers contained herein shall be true and
correct in all material respects on and as of the applicable Remarketing Date, and the Issuers, the
Purchase Contract Agent and the Collateral Agent shall have performed in all material respects all
covenants and agreements contained herein and in the Purchase Contract and Pledge Agreement to be
performed on their part at or prior to such Remarketing Date.

(d) The Company shall have furnished to the Remarketing Agent a written certificate executed
by the Controller, Treasurer or a Vice President of the Company and the Chief Financial Officer or
Chief Accounting Officer of the Company, dated the applicable Remarketing Settlement Date, to the
effect that, to the best of their knowledge after reasonable investigation:

(i) the Company has received no stop order suspending the effectiveness of the
Registration Statement, and no proceedings for such purpose have been instituted or
threatened by the Commission;

(ii) the Company has not received from the Commission any notice pursuant to Rule
401(g)(2) of the Securities Act objecting to use of the automatic shelf registration
statement form;

(iii) there has not occurred any downgrading, and the Company has not received any
notice of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the
rating accorded any securities of the Company or any of the Subsidiaries by any “nationally
recognized statistical rating organization” as such term is defined for purposes of Rule
436(g)(2) under the Securities Act;

 

P-11

 

(iv) for the period from the Commencement Date to such Remarketing Settlement Date,
there has not occurred any Material Adverse Change;

(v) the representations and warranties of the Company in Section 3 of this Agreement
are true and correct with the same force and effect as though expressly made on and as of
such Remarketing Settlement Date.

(vi) the Company has complied with all the agreements hereunder and satisfied all the
conditions on its part to be performed or satisfied hereunder at or prior to such
Remarketing Settlement Date.

(e) PPL Capital Funding shall have furnished to the Remarketing Agent a written certificate
executed by the President or Treasurer of PPL Capital Funding, dated the applicable Remarketing
Settlement Date, to the effect that, to the best of their knowledge after reasonable investigation:

(i) it has received no stop order suspending the effectiveness of the Registration
Statement, and no proceedings for such purpose have been instituted or threatened by the
Commission;

(ii) for the period from the Commencement Date to such Remarketing Settlement Date,
there has not occurred any Material Adverse Change;

(iii) the representations and warranties of PPL Capital Funding in Section 3 of this
Agreement are true and correct with the same force and effect as though expressly made on
and as of such Remarketing Settlement Date.

(iv) it has complied with all the agreements hereunder and satisfied all the conditions
on its part to be performed or satisfied hereunder at or prior to such Remarketing
Settlement Date.

(f) (i) On the date of a Successful Remarketing, 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 the independent accountants of the Issuers, containing statements and
information of the type ordinarily included in accountants’ “comfort letters” with respect to
certain financial information contained in the Remarketing Materials, if any, and (ii) on the
applicable Remarketing Settlement 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 the independent accountants of the Issuers, to the effect that they reaffirm
the statements made in the letter furnished by them pursuant to subsection (f)(i) of this Section
6, except that the specified date referred to therein for the carrying out of
procedures shall be no more than three Business Days prior to the applicable Remarketing
Settlement Date.

 

P-12

 

(g) Each of (i) outside counsel for the Issuers reasonably acceptable to the Remarketing
Agent, and (ii) counsel of the Issuers, shall have furnished to the Remarketing Agent its opinion,
addressed to the Remarketing Agent and dated the applicable Remarketing Settlement Date, in form
and substance reasonably satisfactory to the Remarketing Agent addressing such matters as are set
forth in such counsel’s opinion furnished pursuant to Sections 7(g) and 7(h), respectively, of the
Underwriting Agreement, adapted as necessary to relate to the securities being remarketed hereunder
and to the Remarketing Materials, if any, or to any changed circumstances or events occurring
subsequent to the date of this Agreement, such adaptations being reasonably acceptable to counsel
to the Remarketing Agent.

(h) Counsel for the Remarketing Agent, shall have furnished to the Remarketing Agent its
opinion, addressed to the Remarketing Agent and dated the applicable Remarketing Settlement Date,
in form and substance reasonably satisfactory to the Remarketing Agent.

(i) At the applicable Remarketing Settlement Date, counsel for the Remarketing Agent shall
have been furnished with such document as they may reasonably require for the purpose of enabling
them to pass upon the issuance and sale of the Remarketed Notes as contemplated herein.

Section 7. Indemnification.

(a) The Issuers agree that they will jointly and severally indemnify and hold harmless each
Remarketing Agent and the officers, directors, partners, members, employees, agents and affiliates
of each Remarketing Agent and each person, if any, who controls any Remarketing Agent within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each an “indemnified
party”), against any loss, expense, claim, damage or liability to which, jointly or severally, such
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, any Statutory Prospectus, any Issuer Free
Writing Prospectus or the Prospectus, 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 Issuers agree to reimburse each indemnified party for any
reasonable legal or other expenses as incurred by such indemnified party in connection with
investigating or defending any such loss, expense, claim, damage or liability; provided, however,
that neither the Company nor PPL 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 the Issuers by or through
any Remarketing Agent expressly for use in any such document (provided that the only such
information is the information substantially similar to that set forth on Schedule B of the
Underwriting Agreement) or arises out of, or is based on, statements or omissions from the part of
the Registration Statement which shall
constitute the Statement of Eligibility under the Trust Indenture Act of the Trustee under the
Indenture.

 

P-13

 

(b) Each Remarketing Agent, severally and not jointly, agrees that it will indemnify and hold
harmless the Company and PPL Capital Funding and its officers and directors, and each of them, and
each person, if any, who controls the Company and PPL 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 Statutory Prospectus,
any Issuer Free Writing Prospectus or the Prospectus, 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 documents in reliance
upon, and in conformity with, written information furnished to the Company and PPL Capital Funding
by or through such Remarketing Agent expressly for use in any such document (provided that the only
such information is the information substantially similar to that set forth on Schedule B of the
Underwriting Agreement); and, except as hereinafter in this Section provided, each Remarketing
Agent, severally and not jointly, agrees to reimburse the Company and PPL Capital Funding and its
officers and directors, and each of them, and each person, if any, who controls the Company and PPL
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, the indemnifying party 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 that is a 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 unless (i) the indemnifying party and the indemnified party shall have
mutually agreed to the contrary; (ii) the indemnifying party has failed within a reasonable time to
retain counsel reasonably satisfactory to the indemnified party; (iii) the indemnified party shall
have reasonably concluded that there may be legal defenses available to it that are different from
or in addition to those available to the indemnifying party; or (iv) the named parties in any such
proceeding (including any impleaded parties) include both the indemnifying party and the
indemnified party and the representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. No indemnifying party shall be liable in the event of any settlement of any such action effected without its
consent. 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 Notes.

 

P-14

 

Section 8. Contribution.

(a) If any Remarketing Agent or person entitled to indemnification by the terms of subsection
(a) of Section 7 shall have given notice to the Issuers of a claim in respect thereof pursuant to
subsection (c) of Section 7, 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 Section 7 or if such claim is
unavailable under controlling precedent, such Remarketing Agent or person shall be entitled to
contribution from the Issuers 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 such Remarketing Agent or person is entitled, there shall be considered the
relative benefits received by such Remarketing Agent or person and the Issuers from the offering of
the Securities that were the subject of the claim for indemnification (taking into account the
portion of the proceeds of the offering 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, PPL Capital Funding and
the Remarketing Agents agree that it would not be equitable if the amount of such contribution were
determined by pro rata or per capita allocation (even if the Remarketing Agents were treated as one
entity for such purpose).

(b) 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 8 (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.

(c) The indemnity and contribution provided for in Section 7 and this Section 8 and the
representations and warranties of the Issuers and the several Remarketing Agents set forth in this
Agreement shall remain operative and in full force and effect regardless of (i) any investigation
made by or on behalf of any Remarketing Agent or any person controlling any Remarketing Agent or
the Company, PPL Capital Funding or their respective directors or officers, (ii) the acceptance of
any Securities and payment therefor under this Agreement, and (iii) any termination of this
Agreement.

 

P-15

 

Section 9. Resignation and Removal of the Remarketing Agent.

The Remarketing Agent may resign and be discharged from its duties and obligations hereunder,
and the Company and PPL Capital Funding may remove the Remarketing Agent, by
 giving 30 days’ prior written notice, in the case of a resignation, to the Issuers and the
Purchase Contract Agent and, in the case of a removal, to the Remarketing Agent and the Purchase
Contract Agent; provided, however, that no such resignation nor any such removal shall become
effective until the Company and PPL Capital Funding shall have appointed at least one nationally
recognized broker-dealer as a successor Remarketing Agent and such successor Remarketing Agent
shall have entered into a remarketing agreement with the Issuers, in which it shall have agreed to
conduct the Remarketing in accordance with the Transaction Documents in all material respects.

In any such case, the Company and PPL Capital Funding will use commercially 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 Section 7 and Section 8 shall survive
the resignation or removal of the Remarketing Agent pursuant to this Agreement.

Section 10. Dealing in Securities.

The Remarketing Agent, when acting as the 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
Notes, Corporate Units, Treasury Units or any of the securities of the Issuers (collectively, the
“Securities”). The Remarketing Agent may exercise any vote or join in any action which any
beneficial owner of such 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 Issuers as freely as if it did not act in any capacity
hereunder.

Section 11. Remarketing Agent’s Performance; Duty Of Care.

The duties and obligations of the Remarketing Agent shall be determined solely by the express
provisions of the Transaction Documents. No implied covenants or obligations of or against the
Remarketing Agent shall be read into any of the Transaction Documents. 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, 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 except as
otherwise set forth herein. The Remarketing Agent shall have no obligation to determine whether
there is any limitation under applicable law on the Reset Rate on the Notes or, if there is any
such limitation, the maximum permissible Reset Rate on the Notes, and it shall rely solely upon
written notice from the Issuers (which the Issuers agree to provide prior to the third Business Day
before the applicable Remarketing Date) as to whether or not there is any such limitation and, if
so, the maximum permissible Reset Rate. The Remarketing Agent, acting under this Agreement, shall
incur no liability to the Issuers or to any holder of Remarketed Notes 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 (i) judicially determined to have resulted
from its failure to comply with the material terms of this Agreement or bad faith, gross negligence
or willful misconduct on its part or (ii) determined
pursuant to Section 7 or 8 of this Agreement. The provisions of this Section 11 shall survive
the termination of this Agreement and shall survive the resignation or removal of the Remarketing
Agent pursuant to this Agreement.

 

P-16

 

Section 12. Termination.

This Agreement shall automatically terminate (i) as to the Remarketing Agent on the effective
date of the resignation or removal of the Remarketing Agent pursuant to Section 9 and (ii) on the
earlier of (x) the occurrence of a Termination Event and (y) the Business Day immediately following
the Purchase Contract Settlement Date. If this Agreement is terminated pursuant to any of the other
provisions hereof, except as otherwise provided herein, the Issuers shall not be under any
liability to the Remarketing Agent and the Remarketing Agent shall not be under any liability to
the Issuers, except that if this Agreement is terminated by the Remarketing Agent because of any
failure or refusal on the part of the Issuers to comply with the terms or to fulfill any of the
conditions of this Agreement, the Issuers 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. Notwithstanding any termination of this Agreement, in the event there has been a Successful
Remarketing, the obligations set forth in Section 4 hereof shall survive and remain in full force
and effect until all amounts payable under said Section 4 shall have been paid in full. In
addition, Sections 7, 8 and 11 hereof shall survive the termination of this Agreement or the
resignation or removal of the Remarketing Agent.

Section 13. 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:

[•]

with a copy to:

[•]

 

P-17

 

(b) if to the Company and PPL Capital Funding, shall be delivered or sent by mail, telex or
facsimile transmission to:

PPL Corporation

Two North Ninth Street

Allentown, Pennsylvania 18101-1179

Facsimile: [to be provided]

Attention: [to be provided]

with a copy to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 10017

Facsimile: [to be provided]

Attention: [to be provided]; and

(c) if to the Purchase Contract Agent, shall be delivered or sent by mail or facsimile
transmission to:

The Bank of New York Mellon

101 Barclay Street,

Floor 4E

New York, New York 10286

Attention: Global Structured Finance

Any such statements, requests, notices or agreements shall take effect at the time of receipt
thereof.

Section 14. Persons Entitled to Benefit of Agreement.

This Agreement shall inure to the benefit of and be binding upon each party hereto and its
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 Issuers 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 of this Agreement shall be deemed to be for the benefit of the
Comany’s and PPL Capital Funding’s directors and officers who sign the Registration Statement, if
any, and any person controlling the Company or PPL Capital Funding 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 15. Survival.

The respective agreements, representations, warranties, indemnities and other statements of
the Issuers or its officers and the Remarketing Agent set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation made by or on
behalf of the Remarketing Agent, the Issuers or any of the indemnified persons referred to in

Section 7 hereof, and will survive delivery of the Remarketed Notes. The provisions of
Sections 7, 8 and 11 shall survive the termination and cancellation of this Agreement.

 

P-18

 

Section 16. Governing Law.

THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE.

Section 17. Judicial Proceedings.

Each party hereto expressly accepts and irrevocably submits 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. Each party irrevocably waives, to the
fullest extent permitted by applicable law, any objection which it 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 18. 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 19. 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.

Section 20. Severability.

If any provision of this Agreement shall be held or deemed to be or shall, in fact, be
invalid, inoperative or unenforceable as applied in any particular case in any or all jurisdictions
because it conflicts with any provisions of any constitution, statute, rule or public policy or for
any other reason, then, to the extent permitted by law, such circumstances shall not have the
effect of rendering the provision in question invalid, inoperative or unenforceable in any other
case, circumstance or jurisdiction, or of rendering any other provision or provisions of this
Agreement invalid, inoperative or unenforceable to any extent whatsoever.

 

P-19

 

Section 21. Amendments.

This Agreement may be amended by an instrument in writing signed by the parties hereto. Each
of the Company, PPL Capital Funding and the Purchase Contract Agent agrees that it will not enter
into, cause or permit any amendment or modification of the Transaction Documents or
 any other instruments or agreements relating to the Applicable Ownership Interests in Notes,
the Notes or the Corporate Units that would in any way materially adversely affect the rights,
duties and obligations of the Remarketing Agent, without the prior written consent of the
Remarketing Agent.

Section 22. Successors and Assigns.

Except in the case of a succession pursuant to the terms of the Purchase Contract and Pledge
Agreement, the rights and obligations of the Issuers hereunder may not be assigned or delegated to
any other Person without the prior written consent of the Remarketing Agent. The rights and
obligations of the Remarketing Agent hereunder may not be assigned or delegated to any other Person
(other than an affiliate of the Remarketing Agent) without the prior written consent of the
Issuers.

Section 23. Rights of the Purchase Contract Agent.

Notwithstanding any other provisions of this Agreement, the Purchase Contract Agent shall be
entitled to all the rights, protections and privileges granted to the Purchase Contract Agent in
the Purchase Contract and Pledge Agreement.

[SIGNATURES ON THE FOLLOWING PAGE]

 

P-20

 

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

	 	 	 	 	 
	 	Very truly yours,

PPL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PPL CAPITAL FUNDING, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CONFIRMED AND ACCEPTED:

[•]

as Remarketing Agent
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NEW YORK MELLON,
 not individually, but solely as Purchase Contract
Agent and as attorney-in-fact of the Holders of the Purchase Contracts

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

P-21Exhibit 4.3

Exhibit 4.3

EXECUTION COPY

PPL CAPITAL FUNDING, INC.,

Company

and

PPL CORPORATION,

Guarantor

to

THE BANK OF NEW YORK MELLON,

Trustee

Supplemental Indenture No. 3

Dated as of April 15, 2011

Supplemental to the Subordinated Indenture dated as of March 1, 2007

Establishing a series of Securities designated

4.32% Junior Subordinated Notes due 2019

limited in aggregate principal amount to $977,500,000

 

 

 

SUPPLEMENTAL INDENTURE No. 3, dated as of April 15, 2011, among PPL CAPITAL FUNDING, INC., a
corporation duly organized and existing under the laws of the State of Delaware (herein called the
“Company”), PPL CORPORATION, a corporation duly organized and existing under the laws of the
Commonwealth of Pennsylvania (herein called the “Guarantor”), and THE BANK OF NEW YORK MELLON
(formerly known as The Bank of New York), a New York banking corporation, as Trustee (herein called
the “Trustee”), under the Subordinated Indenture dated as of March 1, 2007 (hereinafter called the
“Original Indenture”), this Supplemental Indenture No. 3 being supplemental thereto. The Original
Indenture, as supplemented by this Supplemental Indenture No. 3, and as may be further supplemented
or amended from time to time, is hereinafter sometimes collectively called the “Indenture.”

Recitals of the Company and the Guarantor

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

As contemplated by Sections 301 and 1201(f) of the Original Indenture, the Company wishes to
establish a series of Securities to be designated “4.32% Junior Subordinated Notes due 2019” (the
“Notes”) to be limited in aggregate principal amount (except as contemplated in Section 301(b) and
the last paragraph of Section 301 of the Original Indenture) to $977,500,000.

As contemplated by Sections 201 and 1415 of the Original Indenture, the Guarantor wishes to
establish the form and terms of the Guarantees to be endorsed on the Notes.

The Company has duly authorized the execution and delivery of this Supplemental Indenture No.
3 to establish the Notes and has duly authorized the issuance of such Notes; the Guarantor has duly
authorized the execution and delivery of this Supplemental Indenture No. 3 and has duly authorized
its Guarantees of the Notes; and all acts necessary to make this Supplemental Indenture No. 3 a
valid agreement of the Company and the Guarantor, to make the Notes valid obligations of the
Company, and to make the Guarantees valid obligations of the Guarantor, have been performed.

 

2

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE No. 3 WITNESSETH:

For and in consideration of the premises and of the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Notes, as follows:

ARTICLE 1

Definitions

Section 1.01. Relation to Original Indenture. This Supplemental Indenture No. 3 constitutes
an integral part of the Original Indenture, and supplements and amends the Original Indenture
solely with respect to the Notes.

Section 1.02. Definition of Terms. For all purposes of this Supplemental Indenture No. 3:

(a) a term not defined herein that is defined in the Original Indenture has the same meaning
when used in this Supplemental Indenture No. 3;

(b) the definition of any term in this Supplemental Indenture No. 3 that is also defined in
the Original Indenture shall supersede the definition of such term in the Original Indenture;

(c) a term not defined herein or in the Original Indenture shall have the meaning set forth in
the Purchase Contract and Pledge Agreement;

(d) a term defined anywhere in this Supplemental Indenture No. 3 has the same meaning
throughout;

(e) the singular includes the plural and vice versa;

(f) headings are for convenience of reference only and do not affect interpretation;

(g) the following terms have the meanings given to them in this Section 1.02(g):

“Applicable Ownership Interest in Notes” has the meaning set forth in the Purchase Contract
and Pledge Agreement.

“Applicable Remarketing Period” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

 

3

 

“Beneficial Owner” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Blackout Period” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Business Day” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
shares issued by that Person.

“Cash Settlement” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Collateral Account” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Collateral Agent” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Collateral Substitution” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Corporate Unit” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Coupon Rate” has the meaning set forth in Section 2.05.

“Custodial Agent” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Deferral Period” means the period beginning on the Interest Payment Date for which the
Company has elected to defer the Interest Payment in accordance with Section 2.06 and ending on the
earlier of (a) the third anniversary of the Interest Payment Date on which the Interest Payment was
originally scheduled to be paid and (b) May 1, 2016.

“Deferred Interest” has the meaning set forth in Section 2.06.

“Depositary” means a clearing agency registered under Section 17A of the Exchange Act that is
designated to act as depositary for the Global Notes as contemplated by Section 2.04.

 

4

 

“Depositary Participant” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Early Settlement” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in
each case as amended from time to time, and the rules and regulations promulgated thereunder.

“Failed Final Remarketing” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Failed Optional Remarketing” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Failed Remarketing” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Final Remarketing” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Final Remarketing Date” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Final Remarketing Period” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Fundamental Change Early Settlement” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

“Global Note” has the meaning set forth in Section 2.04.

“Holder” means (a) with respect to the Corporate Units or the Treasury Units, such term as
defined in the Purchase Contract and Pledge Agreement and (b) with respect to the Notes, the Person
in whose name at the time a particular Note is registered on the books of the Trustee kept for that
purpose.

“Increased Principal Amount” has the meaning set forth in Section 2.09.

“Interest Payment” means, with respect to any Interest Payment Date, the interest payment on
the Notes due on such Interest Payment Date.

“Interest Payment Date” has the meaning set forth in Section 2.05.

 

5

 

“Interest Period” means, with respect to any Interest Payment Date, the period from and
including the immediately preceding Interest Payment Date (or if none, the date hereof) to, but
excluding, such Interest Payment Date.

“New Notes” has the meaning set forth in Section 7.05(a).

“Optional Remarketing Settlement Date” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

“Person” means a 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 or any other entity of
whatever nature.

“Plan” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Pledged Applicable Ownership Interests in Notes” has the meaning set forth in the Purchase
Contract and Pledge Agreement.

“Pledged Note” has the meaning set forth in Section 2.09.

“Purchase Contract” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Purchase Contract Agent” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Purchase Contract and Pledge Agreement” means the Purchase Contract and Pledge Agreement,
dated as of April 15, 2011, among the Company, The Bank of New York Mellon, as Purchase Contract
Agent and attorney-in-fact for Holders of the Purchase Contracts, and The Bank of New York Mellon,
as Collateral Agent, Custodial Agent and Securities Intermediary, as amended from time to time.

“Purchase Contract Settlement Date” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

“Put Price” has the meaning set forth in Section 7.04(a).

“Put Right” has the meaning set forth in Section 7.04(a).

“Redemption” means the redemption of the Notes pursuant to the terms of Section 3.01.

“Redemption Date” has the meaning set forth in Section 3.01.

 

6

 

“Redemption Price” means, for any Note the principal amount of such Note, plus accrued and
unpaid interest (including Deferred Interest and compounded interest thereon), if any, to but
excluding the Redemption Date.

“Reduced Principal Amount” has the meaning set forth in Section 2.09.

“Regular Record Date” means, with respect to any Interest Payment Date for the Notes, January
15, April 15, July 15 and October 15, as the case may be, immediately preceding the applicable
Interest Payment Date, regardless of whether such day is a Business Day; provided that if any of
the Notes are held by a securities depository in book-entry form, the Regular Record Date for such
Notes will be the close of business on the Business Day immediately preceding the applicable
Interest Payment Date.

“Released Note” has the meaning set forth in Section 2.09.

“Relevant Fraction” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Remarketed Notes” means, with respect to all Remarketings during any Applicable Remarketing
Period, the aggregate principal amount of Notes underlying the Pledged Applicable Ownership
Interests in Notes and the Separate Notes, if any, subject to Remarketing as identified to the
Remarketing Agent(s) by the Purchase Contract Agent and the Custodial Agent, respectively, in each
case pursuant to the terms of the Purchase Contract and Pledge Agreement.

“Remarketing” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Remarketing Agent(s)” means any Remarketing Agent(s) appointed by the Company or the
Guarantor, pursuant to the Remarketing Agreement.

“Remarketing Agreement” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Remarketing Date” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Remarketing Price” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Remarketing Settlement Date” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Reset Rate” has the meaning set forth in the Purchase Contract and Pledge Agreement.

 

7

 

“Separate Notes” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Separate Notes Purchase Price” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Stated Maturity” has the meaning set forth in Section 2.02.

“Subjected Note” has the meaning set forth in Section 2.09.

“Successful Optional Remarketing” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

“Successful Final Remarketing” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Successful Remarketing” has the meaning set forth in the Purchase Contract and Pledge
Agreement.

“Termination Event” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Tranche” means a group of Notes which (a) are issued under the Indenture by the Company after
a Successful Remarketing and (b) have the terms as provided in this Supplemental Indenture No. 3.

“Treasury Unit” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Treasury Portfolio Purchase Price” has the meaning set forth in the Purchase Contract and
Pledge Agreement.

“Treasury Portfolio” has the meaning set forth in the Purchase Contract and Pledge Agreement.

“Unit” has the meaning set forth in the Purchase Contract and Pledge Agreement.

The terms “Company,” “Guarantor,” “Trustee,” “Indenture,” “Original Indenture,” “Securities”
and “Notes” shall have the respective meanings set forth in the recitals and the paragraph
preceding the recitals to this Supplemental Indenture No. 3.

 

8

 

ARTICLE 2

General Terms and Conditions of the Notes

Section 2.01. Designation and Principal Amount. There is hereby created a series of
Securities designated “4.32% Junior Subordinated Notes due 2019” and limited in aggregate principal
amount to $977,500,000, except as contemplated in Section 301(b) and the last paragraph of Section
301 of the Original Indenture; provided, however, that the Company, without notice to or consent of
the Holders, may issue additional Notes and thereby increase such principal amount in the future,
on the same terms and conditions (except for the issue date and, if applicable, the date from which
interest accrues and the first Interest Payment Date) as the Notes. The forms and terms of the
Notes and the Guarantees shall be established in this Supplemental Indenture No. 3 as contemplated
by Section 301 of the Original Indenture.

Section 2.02. Maturity. The date upon which the Notes shall become due and payable at final
maturity, together with any accrued and unpaid interest (other than Deferred Interest and
compounded interest thereon, which will be due and payable at the end of the Deferral Period
described in Section 2.06), is, initially, May 1, 2019; provided, however, such date may be changed
as set forth in Section 7.05 hereto (such applicable date, the “Stated Maturity”).

Section 2.03. Form, Payment and Appointment. (a) Except as provided in Section 2.04, the
Notes shall be issued in fully registered, certificated form, without coupons bearing identical
terms. Notes corresponding to Applicable Ownership Interests in Notes that are components of
Corporate Units shall be registered in the name of the Purchase Contract Agent. Principal of and
interest on the Notes will be payable, the transfer of such Notes will be registrable, and such
Notes will be exchangeable for Notes of a like aggregate principal amount bearing identical terms
and provisions, at the office or agency of the Company maintained for such purpose in the Borough
of Manhattan, The City of New York, which shall initially be the Corporate Trust Office of the
Trustee in The City of New York, which is located at 101 Barclay Street, New York, New York, 10286;
provided, however, that, except as otherwise provided in the form of Note attached hereto as
Exhibit A, payment of interest may be made at the option of the Company by check mailed to the
Person entitled thereto at such address as shall appear in the Security Register, and provided,
further, that the Company, in its discretion may change the Place of Payment of the Notes, may
remove the Paying Agent and may appoint one or more additional Paying Agents. Payments with
respect to any Global Note will be made by wire transfer to the Depositary. The Paying Agent and
the Security Registrar for the Notes shall initially be the Trustee.

 

9

 

(b) The Notes shall be issuable in minimum denominations of $1,000 and integral multiples of
$1,000 in excess thereof; provided, however, that upon
the release by the Collateral Agent of Notes underlying the Pledged Applicable Ownership
Interests in Notes in accordance with Section 3.15 of the Purchase Contract and Pledge Agreement
(other than any release of Notes underlying Pledged Applicable Ownership Interests in Notes in
connection with (i) the creation of Treasury Units by Collateral Substitution, (ii) a Successful
Remarketing, (iii) Fundamental Change Early Settlement, (iv) Early Settlement with separate cash
or (v) Cash Settlement, in accordance with Section 3.13, Section 5.02, Section 5.05(b)(ii), Section
5.08 or Section 5.03 of the Purchase Contract and Pledge Agreement, as the case may be), the Notes
shall be issuable in denominations of $50 and integral multiples of $50 in excess thereof.

Section 2.04. Global Notes. Notes corresponding to Applicable Ownership Interests in Notes
that are no longer a component of the Corporate Units and are released from the Collateral Account
will be issued in permanent global form (a “Global Note”), and if issued as one or more Global
Notes, the Depositary shall be The Depository Trust Company or such other depositary as any officer
of the Company may from time to time designate. On the date on which the Notes registered in the
name of the Purchase Contract Agent pursuant to Section 2.03 are issued, the Company shall also
issue one or more Global Notes, registered in the name of the Depositary or its nominee, each
having a zero principal balance. Upon the creation of Treasury Units, or the re-creation of
Corporate Units or in any other case where the Collateral Agent releases Notes underlying the
Pledged Applicable Ownership Interests in Notes, an appropriate annotation shall be made on the
Schedule of Increases or Decreases in Note on the Global Notes held by the Depositary and on the
Pledged Note held by the Collateral Agent. Notes represented by the Global Notes will be
exchangeable for Notes in certificated form only (x) if the Depositary (A) has notified the Company
that it is unwilling or unable to continue as depository for the Global Notes or (B) has ceased to
be a clearing agency registered under the Exchange Act and, in either case, a successor depository
is not appointed by the Company within 90 days after such notice or cessation or (y) following the
request of any Holder or Beneficial Owner of Corporate Units or Treasury Units seeking to
exercise or enforce its rights under such Corporate Units or Treasury Units or (z) upon re-creation
of Corporate Units; provided, subject to Section 2.03, that the Notes in certificated form so
issued in exchange for the Global Notes shall be in denominations of $1,000 or any whole multiple
of $1,000 above that amount and shall be of like aggregate principal amount and tenor as the
portion of the Global Note to be exchanged. Except as provided above, owners of beneficial
interest in a Global Note will not be entitled to receive physical delivery of Notes in
certificated form and will not be considered the Holders thereof for any purpose under the
Indenture. Unless and until such Global Note is exchanged for Notes in certificated form, Global
Notes may be transferred, in whole but not in part, and any payments on the Notes shall be made,
only to the Depositary or a nominee of the Depositary, or to a successor Depositary selected or
approved by the
Company or to a nominee of such successor Depositary. Any Global Note that is exchangeable
pursuant to clause (x) of the fourth sentence of this Section 2.04 shall be exchangeable for Notes
in certificated form registered in such names as the Depositary shall direct.

 

10

 

Section 2.05. Interest. (a) Subject to Section 2.06 of this Supplemental Indenture No. 3
and Section 307 of the Original Indenture, and Section 7.05 hereof, interest on the Notes shall be
payable quarterly in arrears on February 1, May 1, August 1, November 1 of each year (each, an
“Interest Payment Date”), commencing August 1, 2011, and at Maturity (whether at the Stated
Maturity, upon Redemption, or otherwise), to the Person in whose name the relevant Notes are
registered at the close of business on the Regular Record Date for such Interest Payment Date
except that interest payable at the Stated Maturity or Redemption shall be paid to the Person to
whom principal is payable.

(b) The Notes will bear interest initially at the rate of 4.32% per year (the “Coupon Rate”)
from and including April 15, 2011 to, but excluding, the date the principal amount thereof is paid
or made available for payment, or in the event of a Successful Remarketing, the Remarketing
Settlement Date. In the event of a Successful Remarketing of the Notes, the interest rate
applicable to each Tranche of Notes (regardless of whether such Notes are Remarketed Notes) may be
reset by the Remarketing Agent(s) to the Reset Rate with effect from the Remarketing Settlement
Date, as set forth in Section 7.03. If the interest rate is so reset, the Notes in such Tranche
will bear interest at the applicable Reset Rate from, and including, the Remarketing Settlement
Date to, but excluding, the date the principal amount thereof is paid or made available for
payment. Following a Successful Remarketing, if any Tranche of the Remarketed Notes are fixed-rate
notes, interest on such Tranche of Notes will be payable on a semi-annual basis. If there is not a
Successful Remarketing of the Notes, the Coupon Rate will not be reset and the Notes shall continue
to bear interest at the Coupon Rate. The Notes shall bear interest, to the extent permitted by law,
on any overdue principal and interest at the Coupon Rate, unless a Successful Remarketing shall
have occurred, in which case interest on such amounts with respect to a Tranche of Notes shall
accrue at the Reset Rate for such Tranche from and including the Remarketing Settlement Date,
compounded on each applicable Interest Payment Date for such Tranche thereafter.

Section 2.06. Deferral of Interest. (a) Prior to May 1, 2016, in accordance with Section
2.06(c) below and subject to the restrictions set forth in Section 8.01, the Company may elect at
one or more times to defer payment of interest on the Notes (such unpaid interest, the “Deferred
Interest”) for one or more consecutive Interest Periods; provided that each deferred Interest
Payment may only be deferred until the earlier of (i) the third anniversary of the Interest Payment
Date on which the original Interest Payment

 

11

 

was scheduled to be paid and (ii) May 1, 2016. If all
Deferred Interest has been paid (including compounded interest thereon), the Company may again defer Interest Payments subject to and in
accordance with the terms of this Section 2.06. For the avoidance of doubt, in all cases,
including in the event of a Failed Remarketing, the Company shall have no right to defer the
payment of interest on the Notes beyond May 1, 2016.

(b) Deferred Interest on the Notes will bear interest at the Coupon Rate and subject to
applicable law, and such interest will be compounded on each Interest Payment Date unless paid on
the applicable Interest Payment Date, in each case in accordance with the second sentence of
Section 2.06(a) above.

(c) In the event that the Company elects to defer any Interest Payment, the Company shall
notify the Trustee and the Holders in writing of such election at least one Business Day prior to
the Regular Record Date for the Interest Payment Date on which the Company intends to begin a
Deferral Period; provided, however, that the Company’s or the Guarantor’s failure to pay the
interest owed on a particular Interest Payment Date shall also constitute the commencement of a
Deferral Period, unless such interest is paid within five (5) Business Days after such Interest
Payment Date, whether or not the Company provides a notice of deferral.

(d) The Company or the Guarantor may pay Deferred Interest (including compounded interest
thereon) in cash on any scheduled Interest Payment Date occurring on or prior to May 1, 2016.
Deferred Interest paid on any Interest Payment Date shall be payable to the Person in whose name
the Notes are registered at the close of business on the Regular Record Date next preceding such
Interest Payment Date.

(e) In connection with any Successful Final Remarketing of the Notes, all accrued and unpaid
Deferred Interest (including compounded interest thereon) shall be paid to the Holders of Notes
(whether or not such Notes were remarketed in such Remarketing) on the Purchase Contract Settlement
Date in cash.

(f) The Company shall not be permitted to defer the interest payable on the Purchase Contract
Settlement Date with respect to any Notes that are successfully remarketed during the Final
Remarketing Period.

(g) In the event there is any Deferred Interest outstanding, the Company may not elect to
conduct an Optional Remarketing.

Section 2.07. Satisfaction and Discharge. The Notes shall not be subject to satisfaction and
discharge under Section 701 of the Original Indenture.

 

12

 

Section 2.08. No Sinking Fund or Repayment at Option of the Holder. The Notes are not
entitled to the benefit of any sinking fund, and Article Five of the Original Indenture shall not
apply to the Notes.

Section 2.09. Increase and Decrease in Pledged Note. In the event that any Notes underlying
Pledged Applicable Ownership Interests in Notes are to be released from the Pledge following a
Termination Event, Collateral Substitution, Cash Settlement, Successful Remarketing, Early
Settlement or Fundamental Change Early Settlement pursuant to the Purchase Contract and Pledge
Agreement (a “Released Note”), such release and delivery shall be evidenced by an endorsement by
the Collateral Agent on the Note held by the Collateral Agent (the “Pledged Note”) reflecting a
reduction in the principal amount of such Pledged Note equal in amount (the “Reduced Principal
Amount”) to the principal amount of the Released Note. The Collateral Agent shall confirm any such
Reduced Principal Amount by telecopying or otherwise delivering a photocopy of such endorsement
made on the Pledged Note evidencing such Reduced Principal Amount to the Trustee at the telecopier
number or address of the Trustee provided for notices to the Trustee in the Purchase Contract and
Pledge Agreement (or at such other telecopier or address as the Trustee shall provide to the
Collateral Agent). Upon receipt of such confirmation, the Trustee shall instruct the Custodial
Agent to increase the principal amount of a Global Note held by the Custodial Agent in an amount
equal to the Reduced Principal Amount by an endorsement made by the Custodial Agent on such Global
Note to reflect such increase. In the event that a Note is transferred to the Collateral Agent
pursuant to Section 3.14 of the Purchase Contract and Pledge Agreement (a “Subjected Note”) in
connection with the re-creation of Corporate Units, such transfer shall be evidenced by an
endorsement by the Collateral Agent on the Pledged Note held by the Collateral Agent reflecting an
increase in the principal amount of such Pledged Note equal in amount (the “Increased Principal
Amount”) to the principal amount of such Subjected Note. The Collateral Agent shall confirm any
such Increased Principal Amount by telecopying or otherwise delivering a photocopy of such
endorsement made on the Pledged Note evidencing such Increased Principal Amount to the Trustee at
the telecopier number or address of the Trustee provided for notices to the Trustee in the Purchase
Contract and Pledge Agreement (or at such other telecopier or address as the Trustee shall provide
to the Collateral Agent). Upon receipt of such confirmation, the Trustee shall instruct the
Custodial Agent to decrease the principal amount of the Global Note held by the Custodial Agent in
an amount equal to the Increased Principal Amount by an endorsement made by the Custodial Agent on
such Global Note to reflect such decrease.

 

13

 

ARTICLE 3

Redemption of the Notes

Section 3.01. Optional Redemption. The Company may, at its option, redeem the Notes, in
whole but not in part, on a date not earlier than May 1, 2016, at a price per Note equal to the
Redemption Price, payable on the date of redemption (such date, the “Redemption Date”). The
Company may at any time irrevocably waive the right to redeem the Notes for any specified period
(including the remaining term of the Notes). The Company shall not redeem the Notes, if the Notes
have been accelerated and such acceleration has not been rescinded or unless all accrued and unpaid
interest has been paid in full on all Outstanding Notes for all Interest Periods terminating on or
prior to the Redemption Date.

Section 3.02. Effect of Redemption. Unless the Company defaults in the payment of the
Redemption Price, on and after the Redemption Date, once notice of Redemption is given and funds
are irrevocably deposited, in each case, in accordance with Sections 404 and 603 of the Original
Indenture, (a) interest shall cease to accrue on the Notes immediately prior to the close of
business on the Redemption Date, (b) the Notes shall no longer be Outstanding and (c) all rights of
the Holders in respect of the Notes shall terminate and lapse (other than the right to receive any
amount owed in connection with a Redemption but without interest on such amount).

Section 3.03. Redemption Procedures. Notice of Redemption shall be given as provided for in
accordance with Section 404 of the Original Indenture.

Section 3.04. No Other Redemption. Except as set forth in this Article 3 and Section 7.05,
the Notes shall not be redeemable by the Company prior to the Stated Maturity.

ARTICLE 4

Form of Note and Form of Guarantee

Section 4.01. Form of Note and Form of Guarantee. The Notes and the Guarantees and the
Trustee’s certificate of authentication to be endorsed on the Notes are to be substantially in the
forms attached as Exhibit A hereto, with such changes therein as the officers of the Company
executing the Notes (by manual or facsimile signature) may approve, such approval to be
conclusively evidenced by their execution thereof.

 

14

 

ARTICLE 5

Original Issue of Notes

Section 5.01. Original Issue of Notes. Notes in the aggregate principal amount of
$977,500,000 may from time to time, upon execution of this Supplemental Indenture No. 3, be
executed by the Company and delivered to the Trustee for authentication, and the Trustee shall
thereupon authenticate and deliver said Notes to or upon the order of the Company as set forth in a
Company Order pursuant to Section 303 of the Original Indenture without any further action by the
Company (other than as required by the Original Indenture).

ARTICLE 6

Modification of Indenture

Section 6.01. Modification of Indenture with Consent of Holders of Notes. As set forth in
Section 1202 of the Original Indenture (and except as otherwise provided herein), with the consent
of the Holders of at least a majority in the aggregate principal amount of Securities of all
outstanding series (except as otherwise provided in said Section 1202), the Company, the Guarantor
and the Trustee may from time to time and at any time enter into an indenture or indentures
supplemental hereto or to the Original Indenture for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Original Indenture or this
Supplemental Indenture No. 3 or of modifying in any manner the rights of the Holders of the
Securities; provided, however, that if the Notes have been remarketed in more than one Tranche and
if the proposed supplemental indenture directly affects the rights of the Holders of only one
Tranche, then such supplemental indenture shall only require the consent of the Holders of a
majority in the aggregate principal amount of the Notes of such Tranche, considered as one class;
provided, however, that, in addition to Sections 1202(a), (b) and (c) of the Original Indenture, no
amendment or modification may without the consent of the Holders of each Note directly affected
thereby: (i) cause a “significant modification” of the Notes within the meaning of Treasury
Regulation § 1.1001-3, (ii) modify the Put Right of Holders of the Notes upon a Failed Remarketing
in a manner adverse to the Holders or (iii) modify the Remarketing provisions of the Notes in a
manner adverse to the Holders, it being understood that the elimination of the interest deferral
provisions, any reset of the Coupon Rate or modification of the Stated Maturity or redemption
provisions of the Notes in connection with a Successful Remarketing is permitted under the
Indenture and does not require any modification to the provisions of the Indenture.

 

15

 

 Section 6.02. Modification of Indenture without Consent of Holders of Notes. In addition to
subsections (a) through (k) of Section 1201 of the Original

Indenture, without the consent of any Holder of a Note, the Company, the Guarantor and the
Trustee may amend the Indenture to conform the provisions of the Indenture (insofar as they relate
to the Notes) to the description of the Notes contained in the preliminary prospectus supplement
dated April 11, 2011 (as supplemented by the related term sheet dated April 11, 2011) relating to
the Units under the sections entitled “Description of the Equity Units,” “Description of the
Purchase Contracts,” “Certain Provisions of the Purchase Contract and Pledge Agreement” and
“Description of the Notes.”

ARTICLE 7

Remarketing

Section 7.01. Remarketing Procedures. (a) In the case of an Optional Remarketing, unless a
Termination Event has occurred prior to the Optional Remarketing Period, or in the case of a Final
Remarketing, unless a Successful Optional Remarketing or Termination Event has occurred prior to
the Final Remarketing Period, the Company and the Guarantor shall engage the Remarketing Agent(s)
pursuant to the Remarketing Agreement for the Remarketing of the Notes into two Tranches as set
forth under Section 7.05(a). The Company shall, no later than (i) in the case of an Optional
Remarketing, fifteen days prior to the first day of the Optional Remarketing Period or (ii) in the
case of a Final Remarketing, the third Business Day prior to the first day of the Final Remarketing
Period, request that the Depositary or its nominee notify the Beneficial Owners or Depositary
Participants holding Separate Notes, Corporate Units and Treasury Units, and shall provide a copy
of such request to the Collateral Agent and the Purchase Contract Agent, in the case of an Optional
Remarketing, of the Company’s intent to attempt an Optional Remarketing in the Applicable
Remarketing Period, and in all cases, of the proposed Remarketing Dates and the procedures to be
followed in each Remarketing, including the procedures to be followed by Holders of Separate Notes
to participate in a Remarketing, the applicable procedures for Holders of Corporate Units to create
Treasury Units or Holders of Treasury Units to recreate Corporate Units, as the case may be, the
applicable procedures for Holders of Corporate Units to effect an Early Settlement and, in the case
of a Final Remarketing, applicable procedures to effect a Cash Settlement and the applicable
procedures that must be followed by a Holder of Separate Notes if such Holder wishes to exercise
its Put Right or by a Holder if such Holder elects not to exercise its Put Right.

 

16

 

(b) At any time prior to a Remarketing, other than during a Blackout Period, each Holder of
Separate Notes may elect to have Separate Notes held by such Holder remarketed in any Remarketing.
A Holder making such an election must, pursuant to the Purchase Contract and Pledge Agreement,
notify the Custodial Agent and deliver such Separate Notes to the Custodial Agent in

accordance with the provisions set forth in the Purchase Contract and Pledge Agreement. Any
such notice and delivery may not be conditioned upon the level at which the Reset Rate is
established in the Remarketing. Any such notice and delivery may be withdrawn by notifying the
Custodial Agent on or prior to 5:00 p.m., New York City time, on the Business Day immediately
preceding the first day of the Applicable Remarketing Period in accordance with the provisions set
forth in the Purchase Contract and Pledge Agreement. Any such notice and delivery not withdrawn by
such time will be irrevocable with respect to each Remarketing to occur during the Applicable
Remarketing Period. Pursuant to Section 5.02 of the Purchase Contract and Pledge Agreement, by
11:00 a.m., New York City time, in the case of an Optional Remarketing, or promptly after 5:00
p.m., New York City time, in the case of a Final Remarketing, on the Business Day immediately
preceding the first day of the Applicable Remarketing Period, the Custodial Agent, based on the
notices and deliveries received by it prior to such time, shall notify the Remarketing Agent of the
aggregate principal amount of Separate Notes tendered for Remarketing. Pursuant and subject to
Section 5.02 of the Purchase Contract and Pledge Agreement, Notes that underlie Applicable
Ownership Interests in Notes included in Corporate Units will be deemed tendered for Remarketing
and will be remarketed in accordance with the terms of the Remarketing Agreement and the Purchase
Contract and Pledge Agreement.

(c) The right of each Holder of Remarketed Notes to have such Notes remarketed and sold on any
Remarketing Date shall be subject to the conditions that (i)(A) the Remarketing Agent conducts any
Optional Remarketing or (B) in the case of a Final Remarketing, that no Successful Optional
Remarketing has occurred pursuant to the terms of the Remarketing Agreement, (ii) a Termination
Event has not occurred prior to such Remarketing Date, (iii) the Remarketing Agent(s) are able to
find a purchaser or purchasers for Remarketed Notes at the Remarketing Price based on the Reset
Rate and (iv) the purchaser or purchasers of the Remarketed Notes deliver the purchase price
therefor to the Remarketing Agent as and when required.

(d) Neither the Trustee, the Company, the Guarantor nor the Remarketing Agent(s) shall be
obligated in any case to provide funds to make payment upon tender of Notes for remarketing.

Section 7.02. Remarketing. (a) Unless a Termination Event has occurred prior to such date,
if the Company elects to conduct an Optional Remarketing during an Optional Remarketing Period
selected by the Company pursuant to the Purchase Contract and Pledge Agreement, the Remarketing
Agent shall use its reasonable efforts to remarket the Remarketed Notes at the applicable
Remarketing Price.

 

17

 

(b) In the case there is no Successful Optional Remarketing during the Optional Remarketing
Period, either because the Remarketing Agent is unable to

remarket the Notes at the applicable Remarketing Price or because a condition precedent to the
Remarketing has not been satisfied, and unless a Termination Event has occurred prior to such date,
during the Final Remarketing Period, the Remarketing Agent shall use its reasonable efforts to
remarket the Remarketed Notes at the applicable Remarketing Price. The Remarketing on any
Remarketing Date will be considered successful if the resulting proceeds are at least equal to the
applicable Remarketing Price. The Company has the right to postpone the Final Remarketing in the
Company’s absolute discretion on any day prior to the last five Business Days of the Final
Remarketing Period.

Section 7.03. Reset Rate. (a) In connection with each Remarketing, the Remarketing Agent
shall determine the Reset Rate in consultation with the Company and the Guarantor (rounded to the
nearest one-thousandth of one percent (0.00001) per annum).

(b) Anything herein to the contrary notwithstanding, the Reset Rate shall in no event exceed
the maximum rate permitted by applicable law.

(c) In the event of a Successful Remarketing, the Coupon Rate shall be reset on the
Remarketing Settlement Date to the Reset Rate as determined by the Remarketing Agent under the
Remarketing Agreement, and the Company shall (i) notify the Trustee by an Officers’ Certificate
delivered to the Trustee and (ii) request the Depositary to notify its Depositary Participants
holding Notes, in each case, of the maturity date, Reset Rate, Interest Payment Dates and any other
modified terms established for the Notes during the Remarketing on the Business Day following the
date of the Successful Remarketing. Upon a Successful Remarketing, the Reset Rate for each Tranche
shall apply to all Outstanding Notes of such Tranche, whether or not the Holders of all Outstanding
Notes of such Tranche participated in such Remarketing.

(d) If a reset occurs with respect to a Tranche of the Notes pursuant to a Successful Optional
Remarketing, the Reset Rate of such Tranche shall be the interest rate determined by the
Remarketing Agent(s) as the rate the Notes of such Tranche should bear in order for the aggregate
principal amount of such Tranche of Notes to have an aggregate market value on the Optional
Remarketing Date of at least 100% of the Relevant Fraction of the aggregate of the Treasury
Portfolio Purchase Price plus the Separate Notes Purchase Price, if any.

(e) If a reset occurs with respect to a Tranche of the Notes pursuant to a Successful Final
Remarketing, the Reset Rate shall be the interest rate determined by the Remarketing Agent(s) as
the rate the Notes of such Tranche should bear in order for the Remarketing proceeds to equal at
least 100% of the principal amount of the Notes of such Tranche being remarketed.

 

18

 

(f) In the event of a Failed Final Remarketing, or if no Applicable Ownership Interests in
Notes are included in Corporate Units and none of the Holders of the Separate Notes elect to have
their Notes remarketed in any Remarketing, the applicable interest rate on the Notes will not be
reset and will continue to be the Coupon Rate.

(g) If there is a Failed Remarketing, the Company shall cause a notice of the unsuccessful
Remarketing to be published before 9:00 a.m., New York City time on the Business Day following the
Applicable Remarketing Period. This notice shall be validly published by making a timely release to
any appropriate news agency, including Bloomberg Business News and the Dow Jones News Service.

Section 7.04. Put Right. (a) Subject to Section 7.04(b) below, if there has not been a
Successful Remarketing prior to the last day of the Final Remarketing Period, Holders of Notes
will, subject to this Section 7.04, have the right (the “Put Right”) to require the Company to
purchase such Notes for cash on the Purchase Contract Settlement Date, at a price per Note to be
purchased equal to the principal amount of the applicable Note, plus accrued and unpaid interest
thereon (including all accrued and unpaid Deferred Interest, if any, and compounded interest
thereon) to, but excluding, the Purchase Contract Settlement Date (the “Put Price”).

(b) The Put Right of Holders of Applicable Ownership Interests in Notes that are part of
Corporate Units will be deemed to be automatically exercised, in whole but not in part, in
accordance with Section 5.02 of the Purchase Contract and Pledge Agreement (unless any such Holder
has settled the related Purchase Contracts with separate cash on or prior to the Purchase Contract
Settlement Date pursuant to the Purchase Contract and Pledge Agreement), in which case the Company
is not required to provide notice of Redemption or follow any of the other Redemption procedures
outlined under Article 3.

(c) The Put Right of a Holder of a Separate Note shall only be exercisable upon delivery of a
notice substantially in the form attached as Exhibit B hereto, together with such Holder’s Separate
Notes, to the Trustee by such Holder at or prior to 11:00 a.m., New York City time, on the second
Business Day immediately preceding the Purchase Contract Settlement Date. Such Put Right for a
Holder of a Separate Note may be exercised with respect to all or a portion of such Holder’s
Separate Notes (so long as such portion is an integral multiple of $1,000 principal amount). On or
prior to the Purchase Contract Settlement Date, the Company shall deposit with the Trustee
immediately available funds in an amount sufficient to pay, on the Purchase Contract Settlement
Date, the aggregate Put Price of all Separate Notes with respect to which a Holder has exercised a
Put Right. In exchange for any Separate Notes surrendered pursuant to the Put Right,

the Trustee shall then distribute such amount to the Holders of such Separate Notes.

 

19

 

(d) Notes purchased pursuant to the Put Right shall be cancelled by the Trustee.

Section 7.05. Modification of Terms in Connection with a Successful Remarketing.

(a) The Notes to be remarketed in an Optional Remarketing or a Final Remarketing shall be
divided into two Tranches, such that neither Tranche will have an aggregate principal amount of
less than the lesser of $250 million and 50% of the aggregate principal amount of the Notes to be
remarketed. One Tranche shall mature on or about the third anniversary of the Remarketing
Settlement Date and the other shall mature on or about the fifth anniversary of the Remarketing
Settlement Date. The interest deferral provisions of the Notes shall not apply to the Notes
remarketed in a Remarketing. The Company shall allocate the Notes whose Holders elect not to
participate in any Remarketing, without any requirement for the consent of such Holders, into these
two Tranches, such that neither Tranche immediately after the related Remarketing Settlement Date
will have an aggregate principal amount of less than the lesser of $250 million and 50% of the
aggregate principal amount of the Notes then Outstanding. On the Business Day following the
Optional Remarketing Date or the Final Remarketing Date, as applicable, the Company shall notify
Holders of Separate Notes who decided not to participate in the Remarketing how the Company
allocated the Notes of such Holders between the two Tranches. Such Holders shall deliver their
Separate Notes to the Trustee for cancellation and shall receive in exchange therefor notes issued
under the Indenture having the terms related to the Tranche allocated to such Holders (the “New
Notes”). Until such Holders have delivered their Separate Notes as aforesaid and received the
applicable New Notes in exchange therefor, the Separate Notes held by such Holders shall be deemed
to evidence the New Notes of the applicable Tranche.

(b) In addition to the elimination of the interest deferral provisions, modification of the
Stated Maturity and any reset of the Coupon Rate in connection with a Successful Remarketing of a
Tranche of Notes, without the consent of any of the Holders of the Notes, in consultation with the
Remarketing Agent and the Guarantor, the Company may (but will not be required to) make any of the
following elections:

(i) extend the earliest Redemption Date on which the Company may redeem the Notes of
such Tranche from May 1, 2016 to a later date or to eliminate the redemption provisions of
the Notes of such Tranche altogether;

 

20

 

(ii) calculate interest on the Notes of such Tranche on a fixed or floating rate
basis, and if such Tranche of Notes shall accrue interest on a floating rate basis, to
establish new Interest Payment Dates for such Tranche on a quarterly basis or if such
Tranche of Notes shall accrue interest on a fixed rate basis, to establish new Interest
Payment Dates for such Tranche on a semi-annual basis.

(c) Any such elections described above shall be made by irrevocable notice to the Trustee set
forth in an Officers’ Certificate delivered to the Trustee at least 21 Business Days prior to the
first day of the Applicable Remarketing Period (or by such later date as shall be acceptable to the
Trustee), who in turn, will notify the Holders of the Corporate Units and Separate Notes at least
16 Business Days prior to the first day of any Applicable Remarketing Period, and will be effective
on the Remarketing Settlement Date and will apply to all of the Notes, regardless of whether the
Notes were included in the Successful Remarketing.

ARTICLE 8

Certain Restrictions

Section 8.01. Dividend and Other Payment Stoppage During Interest Deferral and Under Certain
Other Circumstances. (a) The Guarantor hereby agrees that until the earlier of (i) the Purchase
Contract Settlement Date for the Notes and (ii) the Optional Remarketing Settlement Date, if: (x)
an Event of Default has occurred and is continuing; (y) the Company has given notice of its
election to defer Interest Payments but the related Deferral Period has not yet commenced; or (z) a
Deferral Period is continuing with respect to the Notes, the Guarantor shall not:

(i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or
make a liquidation payment with respect to, any shares of the Guarantor’s Capital Stock;

(ii) make any payment of principal of, or interest or premium, if any, on, or repay,
purchase or redeem any of the Guarantor’s debt securities that upon the Guarantor’s
liquidation rank pari passu with, or junior in interest to, the Guarantee (as of their
date of issuance and not taking into account any modifications to the terms of the Notes
in connection with a Successful Remarketing); or

(iii) make any guarantee payments regarding any guarantee by the Guarantor of
securities of any of its subsidiaries (other than the Company) if the guarantee ranks pari
passu with, or junior in interest to, the Notes (as of their date of issuance and not
taking into account any modifications to the terms of the Notes in connection with a Successful Remarketing).

 

21

 

(b) Notwithstanding the provisions of Section 8.01(a), the restrictions contemplated by
Section 8.01(a) shall not apply to:

(i) any repurchase, redemption or other acquisition of shares of the Guarantor’s
Capital Stock in connection with:

(A) any employment contract, Plan or other similar arrangement offered by
the Guarantor or any of its subsidiaries with or for the benefit of one or more
employees, officers, directors, consultants or independent contracts; or

(B) a dividend reinvestment or stock purchase plan;

(ii) any exchange, redemption or conversion of any class or series of the Guarantor’s
Capital Stock (or any Capital Stock of any of its subsidiaries) for or to any class or
series of the Guarantor’s Capital Stock or of any class or series of the Guarantor’s
indebtedness for or to any class or series of the Guarantor’s Capital Stock;

(iii) any purchase, or payment in cash in lieu of, fractional interests in shares of
the Guarantor’s Capital Stock pursuant to the conversion or exchange provisions of such
Capital Stock or the securities being converted or exchanged;

(iv) any declaration of a dividend in connection with the issuance of rights, stock
or other property under any rights plan, or the redemption or repurchase of rights
pursuant thereto;

(v) any dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of the warrants, options or other
rights is the same stock as that on which the dividend is being paid or ranks pari passu
with or junior to such stock; or

(vi) any payment of current interest or deferred interest on pari passu securities
during a Deferral Period that is made pro rata to the amounts due on pari passu securities
and the Notes.

 

22

 

ARTICLE 9

Tax Treatment

Section 9.01. Tax Treatment. The Company and the Guarantor agree, and by acceptance of a
Corporate Unit or a Separate Note, each Holder (or beneficial owner) will be deemed to have agreed
(unless otherwise required by any taxing authority) for U.S. federal, state and local income tax
purposes (a) to treat each beneficial owner of a Corporate Unit as the owner of the applicable
interests in the Collateral, including the Notes underlying the Applicable Ownership Interest in
Notes constituting a part of such Corporate Unit, (b) to treat the Notes as indebtedness for all
tax purposes, (c) with respect to Holders who purchase Corporate Units upon issuance, to allocate,
as of the date hereof, 100% of a Holder’s purchase price for a Corporate Unit to the Applicable
Ownership Interests in Notes and 0% to each Purchase Contract, which will establish each Holder’s
initial tax basis in each Purchase Contract as $0.00 and each Holder’s initial tax basis in each
Applicable Ownership Interest in Notes as $50.00, and (d) in all events, not to take any position
for U.S. federal, state or local income tax purposes that is inconsistent with or contrary to the
above covenants.

ARTICLE 10

Miscellaneous

Section 10.01. Ratification of Indenture. The Original Indenture, as supplemented by this
Supplemental Indenture No. 3, is in all respects ratified, approved and confirmed, and this
Supplemental Indenture No. 3 shall be deemed part of the Original Indenture in the manner and to
the extent herein and therein provided and shall together constitute one and the same instrument.

Section 10.02. Trustee Not Responsible for Recitals. The recitals herein contained are made
by the Company and the Guarantor and not by the Trustee, and the Trustee assumes no responsibility
for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency
of this Supplemental Indenture No. 3.

Section 10.03. New York Law to Govern. THIS SUPPLEMENTAL INDENTURE NO. 3 AND THE NOTES SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND FOR ALL
PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE WITHOUT REGARD TO CONFLICTS
OF LAW PRINCIPLES THEREOF, EXCEPT TO THE EXTENT THE TRUST INDENTURE ACT SHALL BE APPLICABLE.

Section 10.04. Waiver of Trial by Jury. Each of the Company, the Guarantor and the Trustee
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or
relating to this Supplemental Indenture No. 3 or the transactions contemplated hereby.

 

23

 

Section 10.05. Separability. In case any one or more of the provisions contained in this
Supplemental Indenture No. 3 or in the Notes shall for any reason be held to be invalid, illegal or
unenforceable in any respect, then, to the extent permitted by law, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Supplemental Indenture No. 3 or of
the Notes, but this Supplemental Indenture No. 3 and the Notes shall be construed as if such
invalid or illegal or unenforceable provision had never been contained herein or therein.

Section 10.06. Counterparts. This Supplemental Indenture No. 3 may be executed in any number
of counterparts each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.

 

24

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 3 to be
duly executed, and their respective corporate seals to be hereunto affixed and attested, all as of
the day and year first written above.

	 	 	 	 	 
	 	PPL CAPITAL FUNDING, INC.

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

 	 
	 	By:  	/s/ James E. Abel
 	 
	 	 	Name:  	James E. Abel 	 
	 	 	Title:  	Senior vice
President-Finance and Treasurer 	 
	 
	 	THE BANK OF NEW YORK MELLON,

as Trustee

 	 
	 	By:  	/s/ Teisha Wright
 	 
	 	 	Name:  	Teisha Wright 	 
	 	 	Title:  	Senior Associate 	 
	 

 

 

 

EXHIBIT A

FORM OF NOTE

[FOR INCLUSION IN GLOBAL NOTE ONLY] [THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE
OF THE DEPOSITORY TRUST COMPANY. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST
COMPANY TO A NOMINEE OF THE DEPOSITORY TRUST COMPANY OR BY A NOMINEE OF THE DEPOSITORY TRUST
COMPANY TO THE DEPOSITORY TRUST COMPANY OR ANOTHER NOMINEE OF THE DEPOSITORY TRUST COMPANY.]

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

 

A-1

 

PPL CAPITAL FUNDING, INC.

4.32% Junior Subordinated Note due 2019

Fully and Unconditionally Guaranteed as to Payment of Principal

and any Interest and Premium by

PPL CORPORATION

	 	 	 
	Original Issue Date:
	 	April 15, 2011
	 
	 	 
	Stated Maturity:
	 	May 1, 2019
	 
	 	 
	Initial Coupon Rate:
	 	4.32%
	 
	 	 
	Interest Payment Dates:
	 	February 1, May 1, August 1, November 1

This Note is not a Discount Security within

the meaning of the within-mentioned Indenture

	 	 	 
	 

	 	CUSIP No.: 69351T AC0
	 
	 	 
	 

	 	ISIN NUMBER: US69351TAC09
	 
	 	 
	No.
 _____ 

	 	$[____]

PPL Capital Funding, Inc., a corporation duly organized and existing under the laws of the
State of Delaware (hereinafter called the “Company,” which term includes any successor corporation
under the Indenture hereinafter referred to below), for value
received, hereby promise to pay to [____], or registered assigns, the
principal sum [of $_____ ]* [as set
forth in the Schedule of Increases or Decreases in Note attached hereto, which amount, taken
together with the principal amounts of all other outstanding Notes, shall not exceed
$977,500,000**], on May 1, 2019 (such date is hereinafter referred to as the “Stated
Maturity”), and to pay interest on said principal sum from the Original Issue Date specified above
or from the most recent Interest Payment Date to which interest has been paid or duly provided for,
subject to deferral at the Company’s election as set forth in Section 2.06 of the Supplemental
Indenture No. 3

_______________

	 	 	 
	*	 	Insert for certificated Notes.
	 
	**	 	Insert in Global Notes and pledged Note.

 

A-2

 

(defined herein), quarterly in arrears on February 1, May 1, August 1 and November 1 of each year
(each, an “Interest Payment Date”), commencing August 1, 2011, at the rate of 4.32% per annum (the
“Initial Coupon Rate”). On and after the Purchase Contract Settlement Date or, if earlier, the
Optional Remarketing Settlement Date, interest on this Note will be payable at the relevant Reset
Rate or, if the interest rate has not been reset, at the Initial Coupon Rate of 4.32% per year. The
Reset Rate, if any, shall be established pursuant to the terms of the Indenture (as such term is
defined on the reverse of this Note) and the Remarketing Agreement.

The interest so payable, and paid or duly provided for, on any Interest Payment Date shall, as
provided in the Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the “Regular Record Date” for
such interest installment, which shall be the close of business on the January 15, April 15, July
15 or October 15, as the case may be, immediately preceding the applicable Interest Payment Date
(whether or not a Business Day (as hereinafter defined)); provided that if this Note is held by a
securities depository in book-entry form, the Regular Record Date will be the close of business on
the Business Day immediately preceding such Interest Payment Date. Notwithstanding the foregoing,
interest payable at Maturity shall be paid to the Person to whom principal shall be paid. Interest
shall be calculated on the basis of a 360-day year of twelve 30-day months, and with respect to any
period less than a full calendar month, on the basis of the actual number of days elapsed during
the period.

Payment of the principal of and premium, if any, on this Note and interest hereon due at
Maturity shall be made upon presentation of this Note at the corporate trust office of The Bank of
New York Mellon in New York, New York or at such other office or agency as may be designated for
such purpose by the Company from time to time. Payment of interest, if any, on this Note (other
than interest due at Maturity) shall be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register, except that (a) if such Person shall
be a securities depositary, such payment may be made by such other means in lieu of check as shall
be agreed upon by the Company, the Trustee or other Paying Agent and such Person and (b) if such
Person is a Holder of $10,000,000 or more in aggregate principal amount of Notes such payment may
be made in immediately available funds by wire transfer to such account as may have been designated
in writing by the Person entitled thereto as set forth herein in time for the Paying Agent to make
such payments in accordance with its normal procedures. Any such designation for wire transfer
purposes shall be made by filing the appropriate information with the Trustee at its Corporate
Trust Office in The City of New York not less than fifteen calendar days prior to the applicable
payment date and, unless revoked by written notice to the Trustee received on or prior to the
Regular Record Date immediately preceding the applicable Interest Payment Date, shall remain in
effect with respect to any further interest payments (other than interest payments due at Maturity)
with respect to this Note payable to such Holder. Payment of the principal of and premium, if any,
and interest, if any, on this Note, as aforesaid, shall be made in such coin or currency of the
United States of America as at the time of payment shall be legal tender for the payment of public
and private debts.

All capitalized terms used herein that are defined in the Indenture (as defined on the reverse
hereof) have the meaning set forth therein. In the event of any
inconsistency between the provisions of this Note and the provisions of the Indenture, the provisions of the Indenture shall
govern and control.

 

A-3

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate
seal.

	 	 	 	 	 	 	 
	 	 	PPL CAPITAL FUNDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Treasurer
	 	 
	 
	 	 	 	 	 	 
	 	 	[SEAL]	 	 
	 
	 	 	 	 	 	 
	 	 	Attested:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Assistant Secretary
	 	 

 

A-4

 

CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON,

      as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Dated:                                         

 

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REVERSE OF NOTE

This Note is one of a duly authorized issue of securities of the Company (herein called the
“Notes”), issued and issuable in one or more series under a Subordinated Indenture (the “Original
Indenture”), dated as of March 1, 2007, among the Company, PPL Corporation (herein called the
“Guarantor,” which term includes any successor under the Indenture) and The Bank of New York Mellon
(formerly known as The Bank of New York), as Trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), as amended and supplemented by the
Supplemental Indenture No. 3, dated as of April 15, 2011, among the Company, the Guarantor and the
Trustee (the “Supplemental Indenture No. 3” and, together with the Original Indenture, the
“Indenture”), to which Indenture reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the Guarantor, the Trustee
and the Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Note is one of the series designated on the face hereof, limited
in aggregate principal amount to $977,500,000; provided, however, that the Company, without notice
to or consent of the Holders, may issue additional Notes and thereby increase such principal amount
in the future, on the same terms and conditions (except for issue date, public offering price and,
if applicable, the date from which interest accrues and the first Interest Payment Date) and with
the same CUSIP number as the Notes.

All terms used in this Note that are defined in the Indenture shall have the meaning assigned
to them in the Indenture.

The Company may redeem the Notes pursuant to Article 3 of the Supplemental Indenture No. 3.

Pursuant to Section 7.04 of the Supplemental Indenture No. 3, if there has not been a
Successful Remarketing prior to the end of the Final Remarketing Period, Holders of Notes will have
the right to require the Company to purchase such Notes on the Purchase Contract Settlement Date.

The Notes are not entitled to the benefit of any sinking fund.

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

The Indenture permits, with certain exceptions as therein provided, the entry into one or more
supplemental indentures for purposes of amending or modifying the rights and obligations of the
Company and the rights of the Holders of the Notes under the Indenture or the Supplemental
Indenture No. 3 at any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time outstanding of all series affected
(except as otherwise provided in Section 1202 of the Original Indenture). The Indenture also
contains provisions permitting the Holders of specified percentages in

 

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principal amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive
compliance by the Company with certain provisions of the Indenture and certain past defaults under
the Indenture and the consequences thereof. Any such consent or waiver by the Holder of this Note
shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of
any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note.

Notes are issuable only in registered form without coupons in denominations of $1,000 and any
integral multiple thereof, except as provided in Section 2.03 of the Supplemental Indenture No. 3.

Except as provided in Section 2.04 of the Supplemental Indenture No. 3, the Notes shall be
issued in fully registered, certificated form, bearing identical terms. Principal of and interest
on the Notes will be payable, the transfer of such Notes will be registrable, and such Notes will
be exchangeable for Notes of a like aggregate principal amount bearing identical terms and
provisions, at the office or agency of the Company maintained for such purpose in the Borough of
Manhattan, The City of New York.

The indebtedness evidenced by this Note is, to the extent provided in the Indenture,
subordinated and subject in right of payment to the prior payment in full of all Senior
Indebtedness of the Company, and this Note is issued subject to the provisions of the Indenture
with respect thereto. Each Holder of this Note, by accepting the same, (a) agrees to and shall be
bound by such provisions, (b) authorizes and directs the Trustee on his behalf to take such action
as may be necessary or appropriate to acknowledge or effectuate the subordination so provided and
(c) appoints the Trustee his attorney-in-fact for any and all such purposes. Each Holder hereof, by
his acceptance hereof, hereby waives all notice of the acceptance of the subordination provisions
contained herein and in the Indenture by each holder of Senior Indebtedness of the Company, whether
now outstanding or hereafter incurred, and waives reliance by each such Holder upon said
provisions.

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

Pursuant to Section 2.04 of the Supplemental Indenture No. 3, Notes corresponding to
Applicable Ownership Interests in Notes that are no longer a component of the Corporate Units and
are released from the Collateral Account will be issued as Global Notes. Except as otherwise
provided in the Indenture, or except upon recreation of Corporate Units, Notes represented by
Global Notes will not be exchangeable for, and will not otherwise be issuable as, Notes in
certificated form. Unless and until such Global Notes are exchanged for Notes in certificated
form, Global Notes may be transferred, in whole but not in part, and any payments on the Notes
shall be made, only to the Depositary or a nominee of the Depositary, or to a successor Depositary
selected or approved by the Company or to a nominee of such successor Depositary.

 

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Subject to Section 307 of the Original Indenture, prior to due presentation of this Note for
registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may
treat the Person in whose name this Note is registered as the owner hereof for all purposes,
whether or not this Note is overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

By acceptance of this Note or a beneficial interest in this Note, each Holder hereof and any
person acquiring a beneficial interest herein, agrees that for United States federal, state and
local tax purposes it is intended that this Note constitutes indebtedness.

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

THIS NOTE SHALL BE GOVERNED BY AND DEEMED TO BE A CONTRACT UNDER, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF SAID STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

 

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ASSIGNMENT

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

 

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

 

[please print or typewrite name and address of assignee]

the within Note of PPL CAPITAL FUNDING, INC. and does hereby irrevocably constitute and
appoint
 _____, Attorney, to transfer said Note on the books of the within-mentioned
Company, with full power of substitution in the premises.

Dated:                                         

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

 

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SCHEDULE
OF INCREASES OR DECREASES IN NOTE1

The
initial principal amount of this Note is $[____]. The
following increases or decreases in a part of this Note have been made:

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	Principal amount of	 	 
	 	 	decrease in	 	increase in	 	this Note	 	Signature of
	 	 	principal	 	principal	 	following	 	authorized signatory
	 	 	amount of this	 	amount of this	 	such decrease	 	of Trustee or
	Date	 	Note	 	Note	 	(or increase)	 	Custodial Agent
	 
	 
	 	 

______________

	 	 	 
	1	 	Insert in Global Notes and Notes that are part of Corporate Units

 

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GUARANTEE

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

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

The Guarantor hereby waives the benefits of diligence, presentment, demand for payment, any
requirement that the Trustee or the Holder of such Note exhaust any right or take any action
against the Company or any other Person, filing of claims with a court in the event of insolvency
or bankruptcy of the Company, any right to require a proceeding first against the Company, protest
or notice with respect to such Note or the indebtedness evidenced thereby and all demands
whatsoever, and covenants that this Guarantee will not be discharged in respect of such Note except
by complete performance of the obligations contained in such Note and in this Guarantee. This
Guarantee shall constitute a guaranty of payment and not of collection. The Guarantor hereby
agrees that, in the event

 

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of a
default in payment  of principal, or premium, if any, or interest, if
any, on such Note, whether at its Stated Maturity, by declaration of acceleration, call for redemption, or
otherwise, legal proceedings may be instituted by the Trustee on behalf of, or by, the Holder of
such Note, subject to the terms and conditions set forth in the Indenture, directly against the
Guarantor to enforce this Guarantee without first proceeding against the Company.

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

The obligations evidenced by this Guarantee are, to the extent provided in the Indenture,
subordinated and subject in right of payment to the prior payment in full of all Senior
Indebtedness (as defined in the Indenture) of the Guarantor, and this Guarantee is issued subject
to the provisions of the Indenture with respect thereto. Each Holder of a Note upon which this
Guarantee is endorsed, by accepting the same, (a) agrees to and shall be bound by such provisions,
(b) authorizes and directs the Trustee on his behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination so provided and (c) appoints the Trustee
his attorney-in-fact for any and all such purposes. Each Holder hereof, by his acceptance hereof,
hereby waives all notice of the acceptance of the subordination provisions contained herein and in
the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter incurred,
and waives reliance by each such Holder upon said provisions.

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

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

 

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made. In
the event that any payment, or any part thereof, is rescinded, reduced, restored or returned on such Note, such Note shall, to the fullest extent
permitted by law, be reinstated and deemed paid only by such amount paid and not so rescinded,
reduced, restored or returned.

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

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

This Guarantee shall be deemed to be a contract made under the laws of the State of New York,
and for all purposes shall be governed by and construed in accordance with the laws of the State of
New York.

IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be executed as of the date
first written above.

	 	 	 	 	 
	 	PPL CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

 

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EXHIBIT B

PUT NOTICE

TO: PPL CAPITAL FUNDING, INC.

THE BANK OF NEW YORK MELLON

Please refer to the Indenture, dated as of March 1, 2007, among PPL Capital Funding, Inc. (the
“Company”), PPL Corporation and The Bank of New York Mellon, as Trustee, as amended and
supplemented by the Supplemental Indenture No. 3, dated as of April 15, 2011, among the Company,
PPL Corporation and the Trustee (such Indenture as amended and supplemented, the “Indenture”).
Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the
Indenture.

The undersigned registered Holder of the Note designated below, which is being delivered to the
Trustee herewith, hereby requests and instructs the Company to purchase such Note or the portion
thereof specified below (so long as such portion is in a principal amount of $1,000 or an integral
multiple thereof), in accordance with the terms of the Indenture, at the price of 100% of the
principal amount of such Note (or portion thereof), plus accrued and unpaid interest thereon
(including all accrued and unpaid Deferred Interest, if any, and compounded interest thereon), but
excluding, the Purchase Contract Settlement Date. The Note (or portion thereof) shall be purchased
by the Company as of the Purchase Contract Settlement Date pursuant to the terms and conditions
specified in the Indenture.

Dated:

Signature:

NOTICE: The above signature of the Holder hereof must correspond with the name as written upon the
face of the Note in every particular without alteration or enlargement or any change whatever.

Signature Guarantee:

Note Certificate Number (if applicable):

Principal Amount:

Portion to be purchased if other than the Principal Amount set forth above:

Social Security or Other Taxpayer Identification Number:

DTC Account Number (if applicable):

Name of Account Party (if applicable):

 

B-1

 

PAYMENT INSTRUCTIONS: The purchase price of the Note should be paid by check in the name of the
person(s) set forth below and mailed to the address set forth below.

	Name(s)

	 	 	 	 
		 	 

(Please Print)
	 	 
	Address

	 	 	 	 
		 	 

(Please Print)
	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(Zip Code)	 	 
	 
	 	 	 	 
	 	 	 
	(Tax Identification or Social Security Number)	 	 

 

B-2

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