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2008 AMENDMENT
TO
EMPLOYMENT AGREEMENT
 
This Amendment (the "Amendment") to the EMPLOYMENT AGREEMENT (the "Agreement")
made as of July 26, 2007 between PEPCO HOLDINGS, INC. (the "Company") and DENNIS
R. WRAASE (the "Executive ") is adopted by the parties hereto to be effective as
of August 1, 2008.
 
WHEREAS, the Parties wish to modify and supplement the terms of the Employee's
employment with the Company for compliance with section 409A of the Internal
Revenue Code of 1986, as amended (the "Code"), as hereinafter provided;
 
WHEREAS, while the Agreement must be operated in compliance with Code Section
409A, pursuant to guidance issued by the Internal Revenue Service amendments to
comply with the provisions Code Section 409A to bring the applicable document
into compliance with Code Section 409A must be made no later than December 31,
2008, to be effective no later than January 1, 2009:
 
Accordingly, the Parties agree as follows:
 
Section 1 of the Agreement shall be restated in its entirety to read as follows:
 
"1.           Term of this Agreement. The term of this Agreement shall begin on
the date first set forth above and shall end on June 1, 2009 (the "Term of this
Agreement") or, if earlier, after all of the Company's and the Executive's
obligations hereunder have been satisfied following termination of the
Executive's employment during the Term of this Agreement.'
 
Section 7(f) shall be restated in its entirety to read as follows:
 
"(f)           Notwithstanding the above, if the Executive qualifies as a
"specified employee", as defined in Section 409A(2)(B)(i) of the Internal
Revenue Code, at the time of the Executive's separation from service for any
reason other than death, any benefits otherwise provided or payable which are
subject to Code Section 409A(a)(2)(B) shall be subject to a six month deferral
in payment and will not be otherwise payable or provided to the Executive until
the earlier of the date of the Employee's death or six months after the date of
such separation from service. Any amounts that are deferred in respect of this
six month restriction shall be paid to Executive as soon as practicable after
the end of the six-month period (or date of death if earlier), but in no event
later than 5 business days after the end of such six month period, at which time
any remaining payments and benefits will continue to be paid and provided for in
the normal form described in herein.
 

 
 

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Section 7(g) is added to Section 7 to read as follows:
 
"(g)                      Notwithstanding any provision herein, any payment or
benefit under this Agreement which is considered a reimbursement under Code
Section 409A must be made no later than the last day of the Executive's taxable
year following the Executive's taxable year in which the expense subject to the
reimbursement was incurred."
 
This Amendment shall be effective August 1, 2008.
 
IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound hereby,
have executed this Agreement.
 

 
EXECUTIVE
 
 
 /s/ D. R. Wraase                    
 
 
 
PEPCO HOLDINGS, INC.
 
 
By:
 /s/ Willilam T. Torgerson         
Name:  William T. Torgerson   
Title:  Vice Chairman & CLO    

 
 

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