Document:

Document

			
	

Prepared by,    Record and Return to: 
Patrick R. Gillard
Ballard Spahr LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103
(215) 864-8536

Counterpart ______ of 30
PECO ENERGY COMPANY
TO
U.S. BANK NATIONAL ASSOCIATION, TRUSTEE
______________________

ONE HUNDRED AND NINETEENTH SUPPLEMENTAL 
INDENTURE DATED AS OF 
FEBRUARY 15, 2021

TO

FIRST AND REFUNDING MORTGAGE
OF
THE COUNTIES GAS AND ELECTRIC 
COMPANY
TO
FIDELITY TRUST COMPANY, TRUSTEE
DATED MAY 1, 1923
__________________
3.050% SERIES DUE 2051
(New Series)
			
	

    

THIS SUPPLEMENTAL INDENTURE dated as of February 15, 2021 by and between PECO ENERGY COMPANY, a corporation organized and existing under the laws of the Commonwealth of Pennsylvania (hereinafter called the Company), party of the first part, and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America (hereinafter called the Trustee), as Trustee under the Mortgage hereinafter mentioned, party of the second part, Witnesseth that
WHEREAS, The Counties Gas and Electric Company (hereinafter called Counties Company), a Pennsylvania corporation and a predecessor to the Company, duly executed and delivered to Fidelity Trust Company, a Pennsylvania corporation to which the Trustee is successor, as Trustee, a certain indenture of mortgage and deed of trust dated May 1, 1923 (hereinafter called the Mortgage), to provide for the issue of, and to secure, its First and Refunding Mortgage Bonds, issuable in series and without limit as to principal amount except as provided in the Mortgage, the initial series of Bonds being designated the 6% Series of 1923, and the terms and provisions of other series of bonds secured by the Mortgage to be determined as provided in the Mortgage; and 
WHEREAS, thereafter Counties Company, Philadelphia Suburban-Counties Gas and Electric Company (hereinafter called Suburban Company), and the Company, respectively, have from time to time executed and delivered indentures supplemental to the Mortgage, providing for the creation of additional series of bonds secured by the Mortgage and for amendment of certain of the terms and provisions of the Mortgage and of indentures supplemental thereto, or evidencing the succession of Suburban Company to Counties Company and of the Company to Suburban Company, such indentures supplemental to the Mortgage, the respective dates, parties thereto, and purposes thereof, being as follows:

    1

									
	Supplemental Indenture 
        and Date    
	Parties	Providing for:

	First
September 1, 1926
	Counties Company to 
Fidelity-Philadelphia
Trust Company
(Successor to Fidelity
Trust Company)
	Bonds of 5% Series of
1926

	Second
May 1, 1927
	Suburban Company to
Fidelity-Philadelphia
Trust Company
	Evidencing succession of 
Suburban Company to 
Counties Company

	Third
May 1, 1927
	Suburban Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 4-1/2% Series
due 1957; amendment of
certain provisions of 
Mortgage

	Fourth
November 1, 1927
	Suburban Company to 
Fidelity-Philadelphia
Trust Company
	Additional Bonds of 
4-1/2% Series due 1957

	Fifth
January 31, 1931
	Company to 
Fidelity-Philadelphia
Trust Company
	Evidencing succession of 
Company to 
Suburban Company

	Sixth
February 1, 1931
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 4% Series 
due 1971

	Seventh
March 1, 1937
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 3-1/2% Series 
due 1967; amendment of
certain provisions of 
Mortgage

	Eighth
December 1, 1941
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 2-3/4% Series
due 1971; amendment of
certain provisions of
Mortgage

	Ninth
November 1, 1944
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 2-3/4% Series 
due 1967 and 2-3/4% Series 
due 1974; amendment of 
certain provisions of 
Mortgage

	Tenth
December 1, 1946
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 2-3/4% Series 
due 1981; amendment of 
certain provisions of 
Mortgage*

	Eleventh
February 1, 1948
	Company to
Fidelity-Philadelphia
Trust Company
	Bonds of 2-7/8% Series
due 1978*

			

    2

									
	Supplemental Indenture 
        and Date    
	Parties	Providing for:

	Twelfth
January 1, 1952
	Company to
Fidelity-Philadelphia
Trust Company
	Bonds of 3-1/4% Series
due 1982*

	Thirteenth
May 1, 1953
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 3-7/8% Series
due 1983*

	Fourteenth
December 1, 1953
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 3-1/8% Series
due 1983*

	Fifteenth
April 1, 1955
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 3-1/8% Series
due 1985*

	Sixteenth
September 1, 1957
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 4-5/8% Series
due 1987; amendment of certain provisions of Mortgage*

	Seventeenth
May 1, 1958
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 3-3/4% Series
due 1988; amendment of certain provisions of Mortgage*

	Eighteenth
December 1, 1958
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 4-3/8% Series
due 1986*

	Nineteenth
October 1, 1959
	Company to 
Fidelity-Philadelphia
Trust Company
	Bonds of 5% Series
due 1989*

	Twentieth
May 1, 1964
	Company to
Fidelity-Philadelphia
Trust Company
	Bonds of 4-1/2% Series
due 1994*

	Twenty-first
October 15, 1966
	Company to
Fidelity-Philadelphia
Trust Company
	Bonds of 6% Series due
1968-1973*

	Twenty-second
June 1, 1967
	Company to The Fidelity Bank (formerly 
Fidelity-Philadelphia
Trust Company)	Bonds of 5-1/4 % Series due
1968-1973 and 5-3/4 % 
Series due 1977*

	Twenty-third
October 1, 1957
	Company to The Fidelity 
Bank	Bonds of 6-1/8 % Series 
due 1997*

	Twenty-fourth
March 1, 1968
	Company to The Fidelity 
Bank	Bonds of 6-1/2% Series
due 1993; amendment of 
Article XIV of
Mortgage*

	Twenty-fifth
September 10, 1968
	Company to The Fidelity 
Bank	Bonds of 1968 Series due
1969-1976*

	Twenty-sixth
August 15, 1969
	Company to The Fidelity 
Bank	Bonds of 8% Series due
1975*

	Twenty-seventh
February 1, 1970
	Company to The Fidelity 
Bank	Bonds of 9% Series due
1995*

    3

									
	Supplemental Indenture 
        and Date    
	Parties	Providing for:

	Twenty-eighth
May 1, 1970
	Company to The Fidelity 
Bank	Bonds of 8-1/2% Series 
due 1976*

	Twenty-ninth
December 15, 1970
	Company to The Fidelity 
Bank	Bonds of 7-3/4% Series 
due 2000*

	Thirtieth
August 1, 1971
	Company to The Fidelity 
Bank	Bonds of 8-1/4% Series 
due 1996*

	Thirty-first
December 15, 1971 
	Company to The Fidelity 
Bank	Bonds of 7-3/8% Series 
due 2001; amendment of 
Article XI of Mortgage*

	Thirty-second
June 15, 1972
	Company to The Fidelity 
Bank	Bonds of 7-1/2% Series
due 1998*

	Thirty-third
January 15, 1973
	Company to The Fidelity 
Bank	Bonds of 7-1/2% Series
due 1999*

	Thirty-fourth
January 15, 1974
	Company to The Fidelity 
Bank	Bonds of 8-1/2% Series
due 2004

	Thirty-fifth
October 15, 1974
	Company to The Fidelity 
Bank	Bonds of 11% Series
due 1980*

	Thirty-sixth
April 15, 1975
	Company to The Fidelity 
Bank	Bonds of 11-5/8% Series
due 2000*

	Thirty-seventh
August 1, 1975
	Company to The Fidelity 
Bank	Bonds of 11% Series due
2000*

	Thirty-eighth
March 1, 1976
	Company to The Fidelity 
Bank	Bonds of 9-1/8% Series
due 2006*

	Thirty-ninth
August 1, 1976
	Company to The Fidelity 
Bank	Bonds of 9-5/8% Series
due 2002*

	Fortieth
February 1, 1977
	Company to The Fidelity 
Bank	Bonds of Pollution
Control Series A
and Pollution
Control Series B*

	Forty-first
March 15, 1977
	Company to The Fidelity 
Bank	Bonds of 8-5/8% Series
due 2007*

	Forty-second
July 15, 1977
	Company to The Fidelity 
Bank	Bonds of 8-5/8% Series
due 2003*

	Forty-third
March 15, 1978
	Company to The Fidelity 
Bank	Bonds of 9-1/8% Series
due 2008*

	Forty-fourth
October 15, 1979
	Company to The Fidelity 
Bank	Bonds of 12-1/2% Series
due 2005*

	Forty-fifth
October 15, 1980
	Company to The Fidelity 
Bank	Bonds of 13-3/4% Series
due 1992*

	Forty-sixth
March 1, 1981
	Company to The Fidelity 
Bank	Bonds of 15-1/4% Series
due 1996; amendment of
Article VIII of
Mortgage*

    4

									
	Supplemental Indenture 
        and Date    
	Parties	Providing for:

	Forty-seventh
March 1, 1981
	Company to The Fidelity 
Bank	Bonds of 15% Series due
1996; amendment of
Article VIII of 
Mortgage*

	Forty-eighth
July 1, 1981
	Company to The Fidelity 
Bank	Bonds of 17-5/8% Series
due 2011*

	Forty-ninth
September 15, 1981
	Company to The Fidelity 
Bank	Bonds of 18-3/4% Series
due 2009*

	Fiftieth
April 1, 1982
	Company to The Fidelity 
Bank	Bonds of 18% Series due
2012*

	Fifty-first
October 1, 1982
	Company to The Fidelity 
Bank	Bonds of 15-3/8% Series
due 2010*

	Fifty-second
June 15, 1983
	Company to The Fidelity 
Bank	Bonds of 13-3/8% Series
due 2013*

	Fifty-third
November 15, 1984
	Company to Fidelity Bank, 
National Association 
(formerly The Fidelity Bank)	Bonds of 13.05% Series
due 1994; amendment
of Article VIII of
Mortgage*

	Fifty-fourth
December 1, 1984
	Company to Fidelity Bank, 
National Association	Bonds of 14% Series due
1988-1994; amendment
of Article VIII of
Mortgage*

	Fifty-fifth
May 15, 1985
	Company to Fidelity Bank, 
National Association	Bonds of Pollution
Control Series C*

	Fifty-sixth
October 1, 1985
	Company to Fidelity Bank, 
National Association	Bonds of Pollution
Control Series D*

	Fifty-seventh
November 15, 1985
	Company to Fidelity Bank, 
National Association	Bonds of 10-7/8% Series
due 1995*

	Fifty-eight
November 15, 1985
	Company to Fidelity Bank, 
National Association	Bonds of 11-3/4% Series
due 2014*

	Fifty-ninth
June 1, 1986
	Company to Fidelity Bank, 
National Association	Bonds of Pollution
Control Series E*

	Sixtieth
November 1, 1986
	Company to Fidelity Bank, 
National Association	Bonds of 10-1/4% Series
due 2016*

	Sixty-first
November 1, 1986
	Company to Fidelity Bank, 
National Association	Bonds of 8-3/4% Series
due 1994*

	Sixty-second
April 1, 1987
	Company to Fidelity Bank, 
National Association	Bonds of 9-3/8% Series
due 2017*

	Sixty-third
July 15, 1987
	Company to Fidelity Bank, 
National Association	Bonds of 11% Series due
2016*

	Sixty-fourth
July 15, 1987
	Company to Fidelity Bank, 
National Association	Bonds of 10% Series due
1997*

	Sixty-fifth
August 1, 1987
	Company to Fidelity Bank, 
National Association	Bonds of 10-1/4% Series
due 2007*

    5

									
	Supplemental Indenture 
        and Date    
	Parties	Providing for:

	Sixty-sixth
October 15, 1987
	Company to Fidelity Bank, 
National Association	Bonds of 11% Series due
1997*

	Sixty-seventh
October 15, 1987
	Company to Fidelity Bank, 
National Association	Bonds of 12-1/8% Series
due 2016*

	Sixty-eighth
April 15, 1988
	Company to Fidelity Bank, 
National Association	Bonds of 10% Series due
1998*

	Sixty-ninth
April 15, 1988
	Company to Fidelity Bank, 
National Association	Bonds of 11% Series due
2018*

	Seventieth
June 15, 1989
	Company to Fidelity Bank, 
National Association	Bonds of 10% Series due
2019*

	Seventy-first
October 1, 1989
	Company to Fidelity Bank, 
National Association	Bonds of 9-7/8% Series
due 2019*

	Seventy-second
October 1, 1989
	Company to Fidelity Bank, 
National Association	Bonds of 9-1/4% Series
due 1999*

	Seventy-third
October 1, 1989
	Company to Fidelity Bank, 
National Association	Medium-Term Note
Series A*

	Seventy-fourth
October 15, 1990
	Company to Fidelity Bank, 
National Association	Bonds of 10-1/2% Series
due 2020*

	Seventy-fifth
October 15, 1990
	Company to Fidelity Bank, 
National Association	Bonds of 10% Series due
2000*

	Seventy-sixth
April 1, 1991
	Company to Fidelity Bank, 
National Association	Bonds of Pollution
Control Series F
and Pollution
Control Series G*

	Seventy-seventh
December 1, 1991
	Company to Fidelity Bank, 
National Association	Bonds of Pollution
Control Series H*

	Seventy-eighth
January 15, 1992
	Company to Fidelity Bank, 
National Association	Bonds of 7-1/2% 1992
Series due 1999*

	Seventy-ninth
April 1, 1992
	Company to Fidelity Bank, 
National Association	Bonds of 8% Series due
2002*

	Eightieth
April 1, 1992
	Company to Fidelity Bank, 
National Association	Bonds of 8-3/4% Series
due 2022*

	Eighty-first
June 1, 1992
	Company to Fidelity Bank, 
National Association	Bonds of Pollution
Control Series I*

	Eighty-second
June 1, 1992
	Company to Fidelity Bank, 
National Association	Bonds of 8-5/8% Series
due 2022*

	Eighty-third
July 15, 1992
	Company to Fidelity Bank, 
National Association	Bonds of 7-1/2% Series
due 2002*

	Eighty-fourth
September 1, 1992
	Company to Fidelity Bank, 
National Association	Bonds of 8-1/4% Series
due 2022*

	Eighty-fifth
September 1, 1992
	Company to Fidelity Bank, 
National Association	Bonds of 7-1/8% Series
due 2002*

	Eighty-sixth
March 1, 1993
	Company to Fidelity Bank, 
National Association	Bonds of 6-5/8% Series
due 2003*

    6

									
	Supplemental Indenture 
        and Date    
	Parties	Providing for:

	Eighty-Seventh
March 1, 1993
	Company to Fidelity Bank, 
National Association	Bonds of 7-3/4% Series
due 2023*

	Eighty-eighth
March 1, 1993
	Company to Fidelity Bank, 
National Association	Bonds of Pollution
Control Series J,
Pollution Control
Series K, Pollution
Control Series L
and Pollution Control
Series M*

	Eighty-ninth
May 1, 1993
	Company to Fidelity Bank, 
National Association	Bonds of 6-1/2% Series
due 2003*

	Ninetieth
May 1, 1993
	Company to Fidelity Bank, 
National Association	Bonds of 7-3/4% Series
2 due 2023*

	Ninety-first
August 15, 1993
	Company to First Fidelity Bank, 
N.A., Pennsylvania
	Bonds of 7-1/8% Series
due 2023*

	Ninety-second
August 15, 1993
	Company to First Fidelity Bank, 
N.A., Pennsylvania
	Bonds of 6-3/8% Series
due 2005*

	Ninety-third
August 15, 1993
	Company to First Fidelity Bank, 
N.A., Pennsylvania
	Bonds of 5-3/8% Series
due 1998*

	Ninety-fourth
November 1, 1993
	Company to First Fidelity Bank, 
N.A., Pennsylvania
	Bonds of 7-1/4% Series
due 2024*

	Ninety-fifth
November 1, 1993
	Company to First Fidelity Bank, 
N.A., Pennsylvania
	Bonds of 5-5/8% Series
due 2001*

	Ninety-sixth
May 1, 1995
	Company to First Fidelity Bank,
N.A., Pennsylvania
	Medium Term Note Series B*
	Ninety-seventh
October 15, 2001
	Company to First Union National Bank (formerly First Fidelity Bank, N.A., Pennsylvania)
	Bonds of  5.95% Series 
due 2011*

	Ninety-eighth
October 1, 2002
	Company to Wachovia Bank, National Association	Bonds of 5.95% Series
Due 2011*

	Ninety-ninth
September 15, 2002
	Company to Wachovia Bank, National Association	Bonds of 4.75% Series
Due 2012*

	One Hundredth 
April 15, 2003
	Company to Wachovia Bank, National Association	Bonds of 3.50% Series
Due 2008*

	One Hundred and First
April 15, 2004
	Company to Wachovia Bank, National Association	Bonds of 5.90% Series
Due 2034*

	One Hundred and Second
September 15, 2006
	Company to Wachovia Bank, National Association	Bonds of 5.95% Series
Due 2036; amendment of certain provisions of Mortgage*

    7

									
	Supplemental Indenture 
        and Date    
	Parties	Providing for:

	One Hundred and Third
March 15, 2007
	Company to U.S. Bank National Association	Bonds of 5.70% Series
Due 2037*

	One Hundred and Fourth
February 15, 2008
	Company to U.S. Bank National Association	Bonds of 5.35% Series
Due 2018*

	One Hundred and Fifth
February 15, 2008
	Company to U.S. Bank National Association	Bonds of Pollution 
Control Series N*

	One Hundred and Sixth
September 15, 2008
	Company to U.S. Bank National Association	Bonds of 5.60% Series
Due 2013*

	One Hundred and Seventh
March 15, 2009
	Company to U.S. Bank National Association	Bonds of 5.00% Series
Due 2014*

	One Hundred and Eighth
September 1, 2012
	Company to U.S. Bank National Association	Bonds of 2.375% Series
Due 2022*

	One Hundred and Ninth
September 15, 2013
	Company to U.S. Bank National Association	Bonds of 1.200% Series
Due 2016*

	One Hundred and Tenth
September 15, 2013
	Company to U.S. Bank National Association	Bonds of 4.800% Series
Due 2043*

	One Hundred and Eleventh
September 1, 2014
	Company to U.S. Bank National Association	Bonds of 4.150% Series
Due 2044*

	One Hundred and Twelfth
       September 15, 2015
	Company to U.S. Bank National Association	Bonds of 3.15% Series
Due 2025*

	One Hundred and Thirteenth
       September 1, 2016
	Company to U.S. Bank National Association	Bonds of 1.700% Series
Due 2021*

	One Hundred and Fourteenth
       September 1, 2017
	Company to U.S. Bank National Association	Bonds of 3.700% Series
Due 2047*

	One Hundred and Fifteenth
       February 1, 2018
	Company to U.S. Bank National Association	Bonds of 3.900% Series
Due 2048*

	One Hundred and Sixteenth
       September 1, 2018
	Company to U.S. Bank National Association	Bonds of 3.900% Series
Due 2048
(Additional Issuance of Bonds of 3.900% Series due 2048)

	One Hundred and Seventeenth
       August 15, 2019
	Company to U.S. Bank National Association	Bonds of 3.000% Series
Due 2049*

	One Hundred and Eighteenth
       June 1, 2020
	Company to U.S. Bank National Association	Bonds of 2.800% Series
Due 2050*

	*And amendment of certain provisions of the Ninth Supplemental Indenture.

    8

WHEREAS, the respective principal amounts of the bonds of each series presently outstanding under the Mortgage and the several supplemental indentures above referred to, are as follows:  
																					
				Series	PRINCIPAL
AMOUNT
		
							
		5.90%		Series due 2034	$75,000,000		
		5.95%		Series due 2036	300,000,000		
		5.70%		Series due 2037	175,000,000		
		2.375%		Series due 2022	350,000,000		
		4.80%		Series due 2043	250,000,000		
		4.150%		Series due 2044	300,000,000		
		3.150%		Series due 2025	350,000,000		
		1.700%		Series due 2021	300,000,000		
		3.700%		Series due 2047	325,000,000		
		3.900%		Series due 2048	650,000,000		
		3.000%		Series due 2049	325,000,000		
		2.800%		Series due 2050	350,000,000		
							
				Total	$3,750,000,000		
							

WHEREAS, the Company deems it advisable and has determined, pursuant to Article XI of the Mortgage,
(a)    to amend Article II of the Ninth Supplemental Indenture to the Mortgage as heretofore amended;
(b)    to convey, pledge, transfer and assign to the Trustee and to subject specifically to the lien of the Mortgage additional property not therein or in any supplemental indenture specifically described but now owned by the Company and acquired by it by purchase or otherwise; and
(c)    to create a new series of bonds to be issued from time to time under, and secured by, the Mortgage, to be designated PECO Energy Company First and Refunding Mortgage Bonds, 3.050% Series due 2051, (hereinafter sometimes called the “bonds of the New Series” or the “bonds of the 3.050% Series due 2051”); and for the above-mentioned purposes to execute, deliver and record this Supplemental Indenture; and
WHEREAS, the Company has determined by proper corporate action that the terms, provisions and form of the bonds of the New Series shall be substantially as follows:

    9

(Form of Face of Bond)

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

PECO ENERGY COMPANY
REGISTERED                                
NUMBER
FIRST AND REFUNDING MORTGAGE BOND,
3.050% SERIES DUE 2051 , 
DUE MARCH 15, 2051

PECO Energy Company, a Pennsylvania corporation (hereinafter called the Company), for value received, hereby promises to pay to Cede & Co. or registered assigns,                       Dollars on March 15, 2051, at the office or agency of the Company, in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company, in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment shall constitute legal tender for the payment of public and private debts, and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) thereon from the date hereof at the rate of 3.050 percent per annum in like coin or currency, payable at either of the offices aforesaid on March 15 and September 15 of each year, beginning on September 15, 2021, until the Company’s obligation with respect to the payment of such principal shall have been discharged.
The record date for determining the registered holder of this bond entitled to an interest payment shall be fourteen calendar days prior to any interest payment date.  Only the registered holder on such record date shall be entitled to receive such payment, notwithstanding any transfer of this bond upon the registration books subsequent to such record date.
This bond shall not be valid or become obligatory for any purpose unless it shall have been authenticated by the certificate of the Trustee under said Mortgage endorsed hereon.
The provisions of this bond are continued on the reverse hereof and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.
[Remainder of this page intentionally left blank]
    10

IN WITNESS WHEREOF, PECO Energy Company has caused this instrument to be signed in its corporate name with the manual or facsimile signature of its Treasurer or Assistant Treasurer, duly attested by the manual or facsimile signature of its Secretary or an Assistant Secretary.

Dated:
PECO ENERGY COMPANY

By_________________________
    Treasurer or Assistant Treasurer

Attest______________________
    Secretary or Assistant Secretary

    11

(Form of Reverse of Bond)

PECO ENERGY COMPANY
First and Refunding Mortgage Bond,
3.050% Series Due 2051, 
Due March 15, 2051

(CONTINUED)
This bond is one of a duly authorized issue of bonds of the Company, unlimited as to amount except as provided in the Mortgage hereinafter mentioned or in any indenture supplemental thereto, and is one of a series of said bonds known as First and Refunding Mortgage Bonds, 3.050% Series due 2051. This bond and all other bonds of said issue are issued and to be issued under and pursuant to and are all secured equally and ratably by an indenture of mortgage and deed of trust dated May 1, 1923, duly executed and delivered by The Counties Gas and Electric Company (to which the Company is successor) to Fidelity Trust Company, as Trustee (to which U.S. Bank National Association, a national banking association organized and existing under the laws of the United States of America, is successor Trustee), as amended, modified or supplemented by certain supplemental indentures from the Company or its predecessors to said successor Trustee or its predecessors, said mortgage, as so amended, modified or supplemented being herein called the Mortgage. Reference is hereby made to the Mortgage for a statement of the property mortgaged and pledged, the nature and extent of the security, the rights of the holders of said bonds and of the Trustee in respect of such security, the rights, duties and immunities of the Trustee, and the terms and conditions upon which said bonds are and are to be secured, and the circumstances under which additional bonds may be issued.
As provided in the Mortgage, the bonds secured thereby may be for various principal sums and are issuable in series, which series may mature at different times, may bear interest at different rates, and may otherwise vary. The bonds of this series mature on March 15, 2051, and are issuable only in registered form without coupons in any denomination authorized by the Company. 
Any bond or bonds of this series may be exchanged for another bond or bonds of this series in a like aggregate principal amount in authorized denominations, upon presentation at the office of the Trustee in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company in the Borough of Manhattan, The City of New York, all subject to the terms of the Mortgage but without any charge other than a sum sufficient to reimburse the Company for any stamp tax or other governmental charge incident to the exchange.
The bonds of this series are redeemable at the option of the Company, as a whole or in part, at any time upon notice sent by the Company through the mail, postage prepaid, at least thirty (30) days and not more than forty-five (45) days prior to the date fixed for redemption, to 
    12

the registered holder of each bond to be redeemed, addressed to such holder at his address appearing upon the registration books.  At any time prior to September 15, 2050, the redemption price shall be equal to the greater of (1) 100% of the principal amount of the bonds to be redeemed, plus accrued interest to, but not including, the redemption date, or (2) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed that would be due if such bonds matured on September 15, 2050 but for the redemption (not including any portion of payments of interest accrued as of the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 15 basis points, plus accrued interest to, but not including, the redemption date.  At any time on or after September 15, 2050 the redemption price shall be equal to 100% of the principal amount of the bonds to be redeemed, plus accrued interest to, but not including, the redemption date.  Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the bonds of this series or portions of the bonds of this series called for redemption.
“Adjusted Treasury Rate” means, with respect to any redemption date, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the redemption date.
“Business Day” means any day that is not a day on which banking institutions in New York City are authorized or required by law or regulation to close.
“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the bonds of this series (assuming for these purposes that the bonds mature on September 15, 2050) that would be used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the bonds of this series.
“Comparable Treasury Price” means, with respect to any redemption date:
•the average of the Reference Treasury Dealer Quotations for that redemption date, after excluding the highest and lowest of the Reference Treasury Dealer Quotations; or
•if the Trustee obtains fewer than three Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations so received.
“Quotation Agent” means the Reference Treasury Dealer appointed by the Company.
“Reference Treasury Dealer” means (1)  each of BNP Paribas Securities Corp., BofA Securities, Inc. and a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) selected by SMBC Nikko Securities America, Inc. and their respective successors and affiliates, in each case, unless such entity ceases to be a Primary Treasury Dealer, 
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in which case the Company shall substitute another Primary Treasury Dealer, and (2) any other Primary Treasury Dealer selected by the Company.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding that redemption date.
The principal of this bond may be declared or may become due on the conditions, in the manner and with the effect provided in the Mortgage upon the happening of an event of default as in the Mortgage provided.
This bond is transferable by the registered holder hereof in person or by attorney, duly authorized in writing, at the office of the Trustee in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company in the Borough of Manhattan, The City of New York, in books of the Company to be kept for that purpose, upon surrender and cancellation hereof, and upon any such transfer, a new registered bond or bonds, without coupons, of this series and for the same aggregate principal amount, will be issued to the transferee in exchange herefor, all subject to the terms of the Mortgage but without payment of any charge other than a sum sufficient to reimburse the Company for any stamp tax or other governmental charge incident to the transfer. The Company, the Trustee, and any paying agent may deem and treat the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment of or on account of the principal and interest due hereon and for all other purposes, and neither the Company nor the Trustee nor any paying agent shall be affected by any notice to the contrary.
No recourse shall be had for the payment of the principal of or interest on this bond to any incorporator or any past, present or future stockholder, officer or director of the Company or of any predecessor or successor corporation, either directly or indirectly, by virtue of any statute or by enforcement of any assessment or otherwise, and any and all liability of the said incorporators, stockholders, officers or directors of the Company or of any predecessor or successor corporation in respect to this bond is hereby expressly waived and released by every holder hereof, except to the extent that such liability may not be waived or released under the provisions of the Securities Act of 1933, as amended, or of the rules and regulations of the Securities and Exchange Commission thereunder.

(End of Form of Reverse of Bond) 

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and
WHEREAS, on the face of each of the bonds of the New Series, there is to be endorsed a certificate of the Trustee in substantially the following form, to wit:

(Form of Trustee’s Certificate)
This bond is one of the bonds, of the series designated therein, provided for in the within-mentioned Mortgage and in the One Hundred and Nineteenth Supplemental Indenture dated as of 
February 15, 2021.
U.S. BANK NATIONAL ASSOCIATION,
Trustee

By______________________________
Authorized Officer
and
WHEREAS, all acts and things necessary to make the bonds of the New Series, when duly executed by the Company and authenticated by the Trustee as provided in the Mortgage and indentures supplemental thereto, and issued by the Company, the valid, binding and legal obligations of the Company, and this Supplemental Indenture a valid and enforceable supplement to the Mortgage, have been done, performed and fulfilled and the execution and delivery hereof have been in all respects duly and lawfully authorized.
NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:
That in order to secure the payment of the principal of and interest on all bonds issued and to be issued under the Mortgage and/or under any indenture supplemental thereto, according to their tenor and effect, and according to the terms of the Mortgage and of any indenture supplemental thereto, and to secure the performance of the covenants and obligations in the bonds and in the Mortgage and any indenture supplemental thereto respectively contained, and for the proper assuring, conveying, and confirming unto the Trustee, its successors in trust and its and their assigns forever, upon the trusts and for the purposes expressed in the Mortgage and in any indentures supplemental thereto, all and singular the estates, property and franchises of the Company thereby mortgaged or intended so to be, the Company, for and in consideration of the premises and of the sum of One Dollar ($1.00) in hand paid by the Trustee to the Company upon the execution and delivery of this Supplemental Indenture, receipt whereof is hereby acknowledged, and of other good and valuable consideration, has granted, bargained, sold, conveyed, released, confirmed, pledged, assigned, transferred and set over and by these presents does grant, bargain, sell, convey, release, confirm, pledge, assign, transfer, and set over to U.S. 
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Bank National Association, as Trustee, and to its successors in trust and its and their assigns forever, all the following described property, real, personal and mixed of the Company, viz.:
All of the real property with any improvements thereon erected as may be owned by the Company and described in the Mortgage or in any indenture supplemental thereto as may heretofore have been executed, delivered and recorded, but excluding therefrom all real property heretofore released from the lien of the Mortgage.  The purpose of restating such prior conveyances as security is to confirm that the obligations of the Company as provided in this Supplemental Indenture are included within the lien and security of the Mortgage, and that public record be made of such purpose and fact by the recording of this Supplemental Indenture.
Together with all gas works, electric works, plants, buildings, structures, improvements and machinery located upon such real estate or any portion thereof, and all rights, privileges and easements of every kind and nature appurtenant thereto, and all and singular the tenements, hereditaments and appurtenances belonging to the real estate or any part thereof hereinbefore described or referred to or intended so to be, or in any way appertaining thereto, and the reversions, remainders, rents, issues and profits thereof; also all the estate, right, title, interest, property, possession, claim and demand whatsoever, as well in law as in equity, of the Company, of, in and to the same and any and every part thereof, with the appurtenances.
Also all the Company’s electric transmission and distribution lines and systems, substations, transforming stations, structures, machinery, apparatus, appliances, devices and appurtenances.
Also all the Company’s gas transmission and distribution mains, pipes, pipe lines and systems, storage facilities, structures, machinery, apparatus, appliances, devices and appurtenances.
Also all plants, systems, works, improvements, buildings, structures, fixtures, appliances, engines, furnaces, boilers, machinery, retorts, tanks, condensers, pumps, gas tanks, holders, reservoirs, expansion tanks, gas mains and pipes, tunnels, service pipe, pipe lines, fittings, gates, valves, connections, gas and electric meters, generators, dynamos, fans, supplies, tools and implements, tracks, sidings, motor and other vehicles, all electric light lines, electric power lines, transmission lines, distribution lines, conduits, cables, stations, substations, and distributing systems, motors, conductors, converters, switchboards, shafting, belting, wires, mains, feeders, poles, towers, mast arms, brackets, pipes, lamps, insulators, house wiring connections and all instruments, appliances, apparatus, fixtures, fittings and equipment and all stores, repair parts, materials and supplies of every nature and kind whatsoever now or hereafter owned by the Company in connection with or appurtenant to its plants and systems for production, purchase, storage, transmission, distribution, utilization and sale of gas and its byproducts and residual products, and/or for the generation, production, purchase, storage, transmission, distribution, utilization and sale of electricity, or in connection with such business.
Also all the goodwill of the business of the Company, and all rights, claims, contracts, leases, patents, patent rights, and agreements, all accounts receivable, accounts, claims, demands, choses in action, books of account, cash assets, franchises, ordinances, rights, powers, easements, 
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water rights, riparian rights, licenses, privileges, immunities, concessions and consents now or hereafter owned by the Company in connection with or appurtenant to its said business.
Also all the right, title and interest of the Company in and to all contracts for the purchase, sale or supply of gas, and its byproducts and residual products of electricity and electrical energy, now or hereafter entered into by the Company with the right on the part of the Trustee, upon the happening of an event of default as defined in the Mortgage as supplemented by any supplemental indenture, to require a specific assignment of any and all such contracts, whenever it shall request the Company to make the same.
Also all rents, tolls, earnings, profits, revenues, dividends and income arising or to arise from any property now owned, leased, operated or controlled or hereafter acquired, leased, operated or controlled by the Company and subject to the lien of the Mortgage and indentures supplemental thereto.
Also all the estate, right, title and interest of the Company, as lessee, in and to any and all demised premises under any and all agreements of lease now or at any time hereafter in force, insofar as the same may now or hereafter be assignable by the Company.
Also all other property, real, personal and mixed not hereinbefore specified or referred to, of every kind and nature whatsoever, now owned, or which may hereafter be owned by the Company (except shares of stock, bonds or other securities not now or hereafter specifically pledged under the Mortgage and indentures supplemental thereto or required to be pledged thereunder by the provisions of the Mortgage or any indenture supplemental thereto), together with all and singular the tenements, hereditaments and appurtenances thereunto belonging or in any way appertaining and the reversions, remainder or remainders, rents, issues and profits thereof; and also all the estate, right, title, interest, property, claim and demand whatsoever as well in law as in equity of the Company of, in and to the same and every part and parcel thereof.
It is the intention and it is hereby agreed that all property and the earnings and income thereof acquired by the Company after the date hereof shall be as fully embraced within the provisions hereof and subject to the lien hereby created for securing the payment of all bonds, together with the interest thereon, as if the property were now owned by the Company and were specifically described herein and conveyed hereby, provided nevertheless, that no shares of stock, bonds or other securities now or hereafter owned by the Company, shall be subject to the lien of the Mortgage and indentures supplemental thereto unless now or hereafter specifically pledged or required to be pledged thereunder by the provisions of the Mortgage or any indenture supplemental thereto.
TO HAVE AND TO HOLD, all and singular the property, rights, privileges and franchises hereby conveyed, transferred or pledged or intended so to be, including afteracquired property, together with all and singular the reversions, remainders, rents, revenues, income, issues and profits, privileges and appurtenances, now or hereafter belonging or in any way appertaining thereto, unto the Trustee and its successors in the trust hereby created, and its and their assigns forever;
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IN TRUST NEVERTHELESS, for the equal and pro rata benefit and security of each and every person or corporation who may be or become the holders of bonds secured by the Mortgage and indentures supplemental thereto, without preference, priority or distinction (except as provided in Section 1 of Article VIII of the Mortgage) as to lien or otherwise of any bond of any series over or from any other bond, so that (except as aforesaid) each and every of the bonds issued or to be issued, of whatsoever series, shall have the same right, lien, privilege under the Mortgage and indentures supplemental thereto and shall be equally secured thereby and hereby, with the same effect as if the bonds had all been made, issued and negotiated simultaneously on the date of the Mortgage.
AND THIS SUPPLEMENTAL INDENTURE FURTHER WITNESSETH:
It is hereby covenanted that all bonds secured by the Mortgage and indentures supplemental thereto with the coupons appertaining thereto, are issued to and accepted by each and every holder thereof, and that the property aforesaid and all other property subject to the lien of the Mortgage and indentures supplemental thereto is held by or hereby conveyed to the Trustee, under and subject to the trusts, conditions and limitations set forth in the Mortgage and indentures supplemental thereto and upon and subject to the further trusts, conditions and limitations hereinafter set forth, as follows, to wit:
ARTICLE I.
AMENDMENTS OF MORTGAGE
Section 1. Article II of the Ninth Supplemental Indenture to the Mortgage, as heretofore amended, is hereby further amended as follows:

By adding to paragraph (d) of Section 5 and to the first clause of Section 9, the following:

“3.050% Series due 2051”

ARTICLE II.
BONDS OF THE NEW SERIES

Section 1. The bonds of the New Series shall be designated as hereinabove specified for such designation in the recital immediately preceding the form of bonds of the New Series, subject however, to the provisions of Section 2 of Article I of the Mortgage, as amended, and are issuable only as registered bonds without coupons, substantially in the form hereinbefore recited.  Subject to the provisions of the Mortgage, the bonds of the New Series shall be issuable without limitation as to the aggregate principal amount thereof. 

The bonds of the New Series shall bear interest from the date thereof and shall be dated as of the interest payment date to which interest was paid next preceding the date of issue unless (a) such date of issue is an interest payment date to which interest was paid, in which event such 
    18

bonds shall be dated as of such interest payment date, or (b) issued prior to the occurrence of the first interest payment date on which interest is to be paid, in which event such bonds shall be dated March 8, 2021.  The bonds of the New Series shall mature on March 15, 2051.
The bonds of the New Series shall bear interest (computed on the basis of a 360-day year of twelve 30-day months) at the rate provided in the form of bond hereinbefore recited, payable on March 15 and September 15 of each year, beginning on September 15, 2021, until the Company’s obligation with respect to the payment of principal thereof shall have been discharged.  Both principal and interest on bonds of the New Series shall be payable at the office or agency of the Company in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company in the Borough of Manhattan, The City of New York, and shall be payable in such coin or currency of the United States of America as at the time of payment shall constitute legal tender for the payment of public and private debts.
The bonds of the New Series shall be in any denomination authorized by the Company.
Any bond or bonds of the New Series shall be exchangeable for another bond or bonds of the New Series in a like aggregate principal amount.  Any such exchange may be made upon presentation at the office of the Trustee in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company in the Borough of Manhattan, The City of New York, without any charge other than a sum sufficient to reimburse the Company for any stamp tax or other governmental charge incident to the exchange.
Section 2.  (a) Initially, the bonds of the New Series shall be issued pursuant to a book-entry system administered by The Depository Trust Company (or its successor, referred to herein as the “Depository”) as a global security with no physical distribution of bond certificates to be made except as provided in this Section 2.  Any provisions of the Mortgage or the bonds of the New Series requiring physical delivery of bonds shall, with respect to any bonds of the New Series held under the book-entry system, be deemed to be satisfied by a notation on the bond registration books maintained by the Trustee that such bonds are subject to the book-entry system.

(b) So long as the book-entry system is being used, one or more bonds of the New Series in the aggregate principal amount of the bonds of the New Series and registered in the name of the Depository’s nominee (the “Nominee”) will be issued and required to be deposited with the Depository and held in its custody.  The book-entry system will be maintained by the Depository and its participants and indirect participants and will evidence beneficial ownership of the bonds of the New Series, with transfers of ownership effected on the records of the Depository, the participants and the indirect participants pursuant to rules and procedures established by the Depository, the participants and the indirect participants.  The principal of and any premium on each bond of the New Series shall be payable to the Nominee or any other person appearing on the registration books as the registered holder of such bond or its registered assigns or legal representative at the office of the office or agency of the Company in the City of Philadelphia, Pennsylvania or the Borough of Manhattan, The City of New York.  So long as the book-entry system is in effect, the Depository will be recognized as the holder of the bonds of 
    19

the New Series for all purposes.  Transfers of principal, interest and any premium payments or notices to participants and indirect participants will be the responsibility of the Depository, and transfers of principal, interest and any premium payments or notices to beneficial owners will be the responsibility of participants and indirect participants.  No other party will be responsible or liable for such transfers of payments or notices or for maintaining, supervising or reviewing such records maintained by the Depository, the participants or the indirect participants.  While the Nominee or the Depository, as the case may be, is the registered owner of the bonds of the New Series, notwithstanding any other provisions set forth herein, payments of principal of, redemption premium, if any, and interest on the bonds of the New Series shall be made to the Nominee or the Depository, as the case may be, by wire transfer in immediately available funds to the account of such holder.  Without notice to or consent of the beneficial owners, the Trustee with the consent of the Company and the Depository may agree in writing to make payments of principal, redemption price and interest in a manner different from that set forth herein.  In such event, the Trustee shall make payment with respect to the bonds of the New Series in such manner as if set forth herein.

(c) The Company may at any time elect (i) to provide for the replacement of any Depository as the depository for the bonds of the New Series with another qualified depository, or (ii) to discontinue the maintenance of the bonds of the New Series under book-entry system.  In such event, the Trustee shall give 30 days’ prior notice of such election to the Depository (or such fewer number of days acceptable to such Depository).

(d) Upon the discontinuance of the maintenance of the bonds of the New Series under a book-entry system, the Company will cause the bonds to be issued directly to the beneficial owners of the bonds of the New Series, or their designees, as further described below.  In such event, the Trustee shall make provisions to notify participants and beneficial owners of the bonds of the New Series, by mailing an appropriate notice to the Depository, that bonds of the New Series will be directly issued to beneficial owners of the bonds as of a date set forth in such notice (or such fewer number of days acceptable to such Depository).

(e) In the event that bonds of the New Series are to be issued to beneficial owners of the bonds, or their designees, the Company shall promptly have bonds of the New Series prepared in certificated form registered in the names of the beneficial owners of such bonds shown on the records of the participants provided to the Trustee, as of the date set forth in the notice above.  Bonds issued to beneficial owners, or their designees shall be substantially in the form set forth in this Supplemental Indenture, but will not include the provision related to global securities.

(f) If the Depository is replaced as the depository for the bonds of the New Series with another qualified depository, the Company will issue a replacement global security substantially in the form set forth in this Supplemental Indenture.

 (g) The Company and the Trustee shall have no liability for the failure of any Depository to perform its obligations to any participant, any indirect participant or any beneficial owner of any bonds of the New Series, and the Company and the Trustee shall not be liable for 
    20

the failure of any participant, indirect participant or other nominee of any beneficial owner or any bonds of the New Series to perform any obligation that such participant, indirect participant or other nominee may incur to any beneficial owner of the bonds of the New Series.

(h) Notwithstanding any other provision of the Mortgage, on or prior to the date of issuance of the bonds of the New Series, the Trustee shall have executed and delivered to the initial Depository a Letter of Representations governing various matters relating to the Depository and its activities pertaining to the bonds of the New Series.  The terms and provisions of such Letter of Representations are incorporated herein by reference and, in the event there shall exist any inconsistency between the substantive provisions of the said Letter of Representations and any provisions of the Mortgage, then, for as long as the initial Depository shall serve as depository with respect to the bonds of the New Series, the terms of the Letter of Representations shall govern. 

(i) The Company and the Trustee may rely conclusively upon (i) a certificate of the Depository as to the identity of a participant in the book-entry system; (ii) a certificate of any participant as to the identity of any indirect participant and (iii) a certificate of any participant or any indirect participant as to the identity of, and the respective principal amount of bonds of the New Series owned by, beneficial owners.

Section 3. So long as the bonds of the New Series are held by The Depository Trust Company, such bonds of the New Series shall bear the following legend:

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

Section 4. So long as any of the bonds of the New Series remain outstanding, the Company shall keep at its office or agency in the Borough of Manhattan, The City of New York, as well as at the office of the Trustee in the City of Philadelphia, Pennsylvania, books for the registry and transfer of outstanding bonds of the New Series, in accordance with the terms and provisions of the bonds of the New Series and the provisions of Section 8 of Article I of said Mortgage.

Section 5. So long as any bonds of the New Series remain outstanding, the Company shall maintain an office or agency in the City of Philadelphia, Pennsylvania, and an office or agency in the Borough of Manhattan, The City of New York, for the payment upon proper demand of the principal of, the interest on, or the redemption price of the outstanding bonds of 
    21

the New Series, and will from time to time give notice to the Trustee of the location of such office or agency.  In case the Company shall fail to maintain for such purpose an office or agency in the City of Philadelphia or shall fail to give such notice of the location thereof, then notices, presentations and demands in respect of the bonds of the New Series may be given or made to or upon the Trustee at its office in the City of Philadelphia and the principal of, the interest on, and the redemption price of said bonds in such event be payable at said office of the Trustee.  All bonds of the New Series when paid shall forthwith be cancelled.

Section 6. The record date for determining the registered holder of this bond entitled to an interest payment shall be fourteen calendar days prior to any interest payment date.  Only the registered holder of such bond on such record date shall be entitled to receive such payment, notwithstanding any transfer of such bond upon the registration books subsequent to such record date.

Section 7. The bonds of the New Series shall be issued under and subject to all of the terms and provisions of the Mortgage, of the indentures supplemental thereto referred to in the recitals hereof and of this Supplemental Indenture which may be applicable to such bonds or applicable to all bonds issued under the Mortgage and indentures supplemental thereto.

ARTICLE III.

ISSUE AND AUTHENTICATION OF
BONDS OF THE NEW SERIES

In addition to any bonds of any series which may from time to time be executed by the Company and authenticated and delivered by the Trustee upon compliance with the provisions of the Mortgage and/or of any indenture supplemental thereto, bonds of the New Series of an aggregate principal amount of $375,000,000 shall forthwith be executed by the Company and delivered to the Trustee, and the Trustee shall thereupon, whether or not this Supplemental Indenture shall have been recorded, authenticate and deliver said bonds to or upon the written order of the President, a Vice President, or the Treasurer of the Company, under the terms and provisions of paragraph (e) of Section 3 of Article II of the Mortgage, as amended.
ARTICLE IV.

REDEMPTION OF BONDS OF THE
NEW SERIES

Section 1. The bonds of the New Series shall be redeemable, at the option of the Company, as a whole or in part, at any time upon notice sent by the Company through the mail, postage prepaid, at least thirty (30) days and not more than fortyfive (45) days prior to the date fixed for redemption, to the registered holder of each bond to be redeemed in whole or in part, addressed to such holder at his address appearing upon the registration books.  At any time prior to September 15, 2050 the redemption price shall be equal to the greater of (1) 100% of the 
    22

principal amount of the bonds to be redeemed, plus accrued interest to, but not including, the redemption date, or (2) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed that would be due if such bonds matured on September 15, 2050 but for the redemption (not including any portion of payments of interest accrued as of the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 15 basis points, plus accrued interest to, but not including, the redemption date.  At any time on or after September 15, 2050 the redemption price shall be equal to 100% of the principal amount of the bonds to be redeemed, plus accrued interest to, but not including, the redemption date.  Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the bonds of the New Series or portions of the bonds of the New Series called for redemption.

“Adjusted Treasury Rate” means, with respect to any redemption date, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the redemption date.
“Business Day” means any day that is not a day on which banking institutions in New York City are authorized or required by law or regulation to close.
“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the bonds of the New Series (assuming for these purposes that the bonds mature on September 15, 2050) that would be used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the bonds of the New Series.
“Comparable Treasury Price” means, with respect to any redemption date:
•the average of the Reference Treasury Dealer Quotations for that redemption date, after excluding the highest and lowest of the Reference Treasury Dealer Quotations; or
•if the Trustee obtains fewer than three Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations so received.
“Reference Treasury Dealer” means (1)  each of BNP Paribas Securities Corp., BofA Securities, Inc. and a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) selected by SMBC Nikko Securities America, Inc. and their respective successors and affiliates, in each case, unless such entity ceases to be a Primary Treasury Dealer, in which case the Company shall substitute another Primary Treasury Dealer, and (2) any other Primary Treasury Dealer selected by the Company.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked 
    23

prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the trustee by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding that redemption date.
a.In case the Company shall desire to exercise such right to redeem and pay off all or any part of such bonds of the New Series as hereinbefore provided it shall comply with all the terms and provisions of Article III of the Mortgage, as amended, applicable thereto, and such redemption shall be made under and subject to the terms and provisions of Article III and in the manner and with the effect therein provided, but at the time or times and upon mailing of notice, all as hereinbefore set forth in Section 1 of this Article. No publication of notice of any redemption of any bonds of the New Series shall be required.
ARTICLE V.

CERTAIN EVENTS OF DEFAULT; REMEDIES

Section 1.  So long as any bonds of the New Series remain outstanding, in case one or more of the following events shall happen, such events shall, in addition to the events of default heretofore enumerated in paragraphs (a) throughout (d) of Section 2 of Article VIII of the Mortgage, constitute an “event of default” under the Mortgage, as fully as if such events were enumerated therein:
(e) default shall be made in the due and punctual payment of the principal (including the full amount of any applicable optional redemption price) of any bond or bonds of the New Series whether at the maturity of said bonds, or at a date fixed for redemption of said bonds, or any of them, or by declaration as authorized by the Mortgage;
Section 2.  So long as any bonds of the New Series remain outstanding, Section 10 of Article VIII of the Mortgage, as heretofore amended, is hereby further amended by inserting in the first paragraph of such Section 10, immediately after the words “as herein provided,” at the end of clause (2) thereof, the following:
“or (3) in case default shall be made in any payment of any interest on any bond or bonds secured by this indenture or in the payment of the principal (including any applicable optional redemption price) of any bond or bonds secured by this indenture, where such default is not of the character referred to in clause (1) or (2) of this Section 10 but constitutes an event of default within the meaning of Section 2 of this Article VIII.”

    24

ARTICLE VI.

CONCERNING THE TRUSTEE

The Trustee hereby accepts the trust herein declared and provided and agrees to perform the same upon the terms and conditions set forth in the Mortgage, as amended and supplemented, and upon the following terms and conditions:
The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity of this Supplemental Indenture or the due execution hereof by the Company or for or in respect of the recitals contained herein, all of which recitals are made by the Company solely.
ARTICLE VII.

MISCELLANEOUS

Section 1. Unless otherwise clearly required by the context, the term “Trustee,” or any other equivalent term used in this Supplemental Indenture, shall be held and construed to mean the trustee under the Mortgage for the time being whether the original or a successor trustee.

Section 2. The headings of the Articles of this Supplemental Indenture are inserted for convenience of reference only and are not to be taken to be any part of this Supplemental Indenture or to control or affect the meaning of the same.

Section 3. Nothing expressed or mentioned in or to be implied from this Supplemental Indenture or in or from the bonds of the New Series is intended, or shall be construed, to give any person or corporation, other than the parties hereto and their respective successors, and the holders of bonds secured by the Mortgage and the indentures supplemental thereto, any legal or equitable right, remedy or claim under or in respect of such bonds or the Mortgage or any indenture supplemental thereto, or any covenant, condition or provision therein or in this Supplemental Indenture contained. All the covenants, conditions and provisions thereof and hereof are for the sole and exclusive benefit of the parties hereto and their successors and of the holders of bonds secured by the Mortgage and indentures supplemental thereto.

Section 4. This Supplemental Indenture may be executed in several counterparts, each of which shall be an original and all collectively but one instrument.

Section 5. This Supplemental Indenture shall be effective as of March 1, 2021, but was actually executed and delivered as of February 15, 2021.

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IN WITNESS WHEREOF, an Authorized Officer of the party of the first part and a Vice President of the party of the second part, under and by the authority vested in them, have hereto affixed their signatures this 15th day of February, 2021.

PECO ENERGY COMPANY

By_______________________________
 Brian J. Buck, Authorized Officer

    Supplemental Indenture – Company’s Signature Page

U.S. BANK NATIONAL ASSOCIATION, Trustee

By________________________________
George J. Rayzis
Vice President

    Supplemental Indenture – Trustee’s Signature Page

DISTRICT OF COLUMBIA              :
                          :  SS.

    On this, the 15th day of February, 2021, before me, a Notary Public in and for the Commonwealth of Pennsylvania, the undersigned officer, personally appeared BRIAN J. BUCK, who acknowledged himself to be an Authorized Officer of PECO Energy Company, a Pennsylvania corporation, and that he as such officer, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as such officer.
    In witness whereof, I hereunto set my hand and official seal.

                            __________________________________
                                    Notary Public
My Commission expires:
[NOTARIAL SEAL]

    Supplemental Indenture – Company’s Notary Page

COMMONWEALTH OF PENNSYLVANIA :
                          :  SS.
COUNTY OF _____________________      :

    On this, the _______ day of __________, 2021, before me, a Notary Public in and for the Commonwealth of Pennsylvania, the undersigned officer, personally appeared George J. Rayzis who acknowledged himself to be the Vice President of U.S. Bank National Association, a national banking association, as Trustee, and that he as such officer, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the national banking association, as Trustee, by himself as such officer.

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

                            ____________________________________
Notary Public

My Commission expires:
[NOTARIAL SEAL]

    Supplemental Indenture – Trustee’s Notary Page

CERTIFICATE OF RESIDENCE
U.S. Bank National Association, Mortgagee and Trustee within named, hereby certifies that its precise address in the City of Philadelphia is 50 South 16th Street, Philadelphia, Pennsylvania 19102.

U.S. BANK NATIONAL ASSOCIATION, 
Trustee

By________________________________
George J. Rayzis
Vice PresidentExhibit
4.1

 

DESCRIPTION
OF THE COMPANY’S SECURITIES

REGISTERED
PURSUANT TO SECTION 12 OF THE SECURITIES

EXCHANGE
ACT OF 1934

 

Harrow
Health, Inc. has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common
stock, par value $0.001 per share.

 

In
this exhibit, when we refer to “Company”, “Harrow”, “we”, “us” and “our”
or when we otherwise refer to ourselves, we mean Harrow Health, Inc., excluding, unless otherwise expressly stated or the context
requires, our subsidiaries.

 

The
following is a summary of the rights of our common and preferred stock and of certain provisions of our Amended and Restated Certificate
of Incorporation and Amended and Restated Bylaws. For more detailed information, please see our Amended and Restated Certificate
of Incorporation and Amended and Restated Bylaws, which are incorporated by reference as exhibits to the Annual Report on Form
10-K to which this description is an exhibit.

 

Authorized
Capital Stock

 

Our
authorized capital stock consists of 55,000,000 shares, 50,000,000 of which are designated as common stock, par value $0.001 per
share, and 5,000,000 of which are designated as preferred stock, par value $0.001 per share. As of March 5, 2021, there were 25,983,364
shares of our common stock and no shares of our preferred stock issued and outstanding.

 

Capital
Stock Issued and Outstanding

 

As
of March 1, 2021, there were approximately 96 stockholders of record (excluding an indeterminable number of stockholders whose
shares are held in street or “nominee” name) of our common stock. In addition, as of December 31, 2019, there are
outstanding (i) options to acquire 2,656,683 shares of our common stock with a weighted average exercise price of $5.31 per share,
(ii) warrants to purchase 780,386 shares of common stock with a weighted average exercise price of $2.12 per share, (iii) 1,411,930
unvested restricted stock units and (iv) 324,303 restricted stock units award to directors that had vested, but issuance and delivery
of the shares are deferred until the director resigns or otherwise leaves the Board of Directors.

 

Description
of Common Stock

 

We
are authorized to issue 50,000,000 shares of common stock, par value $0.001 per share. The holders of our common stock are entitled
to one vote per share on all matters submitted to a vote of the stockholders, including the election of directors. Our Amended
and Restated Certificate of Incorporation does not provide for cumulative voting in the election of directors. Subject to any
preferential rights of any outstanding series of preferred stock created by our Board of Directors from time to time the holders
of our common stock will be entitled to cash dividends as may be declared, if any, by our Board of Directors from funds available.
Subject to any preferential rights of any outstanding series of preferred stock that we may issue, upon liquidation, dissolution
or winding up of our company, the holders of our common stock will be entitled to receive pro rata all assets available for distribution
to the holders.

 

Description
of Preferred Stock

 

Our
Board of Directors has the authority, without further action by our stockholders, to issue up to 5,000,000 shares of preferred
stock, par value $0.001 per share, in one or more series. Our Board of Directors may designate the rights, preferences, privileges
and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation
preference, sinking fund terms, and number of shares constituting any series and the designation of any series. The issuance of
preferred stock could have the effect of restricting dividends on our common stock, diluting the voting power of our common stock,
impairing the liquidation rights of our common stock, or delaying or preventing a change in control. The ability to issue preferred
stock could delay or impede a change in control.

 

    	 	1	 

     

    

 

Anti-Takeover
Provisions

 

We
are subject to the provisions of Section 203 of the Delaware General Corporation Law, or DGCL, an anti-takeover law. In general,
Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination’’ with an
“interested stockholder’’ for a period of three years after the date of the transaction in which such stockholder
became an interested stockholder, unless the business combination is approved in a prescribed manner. For purposes of Section
203, a “business combination’’ includes a merger, asset sale or other transaction resulting in a financial benefit
to the interested stockholder, and an “interested stockholder’’ is a stockholder who, together with affiliates
and associates, owns, or within three years prior, did own, 15% or more of the voting stock.

 

Liability
and Indemnification of Directors and Officers

 

Section
145 of the DGCL provides, in general, that a corporation incorporated under the laws of the State of Delaware, such as us, may
indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action,
suit or proceeding (other than a derivative action by or in the right of the corporation) by reason of the fact that such person
is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as
a director, officer, employee or agent of another enterprise, against expenses (including attorneys’ fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding
if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests
of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe such person’s
conduct was unlawful. In the case of a derivative action, a Delaware corporation may indemnify any such person against expenses
(including attorneys’ fees) actually and reasonably incurred by such person in connection with the defense or settlement
of such action or suit if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed
to the best interests of the corporation, except that no indemnification will be made in respect of any claim, issue or matter
as to which such person will have been adjudged to be liable to the corporation unless and only to the extent that the Court of
Chancery of the State of Delaware or any other court in which such action was brought determines such person is fairly and reasonably
entitled to indemnity for such expenses.

 

Our
Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws provide that we will indemnify our directors,
officers, employees and agents to the extent and in the manner permitted by the provisions of the DGCL, as amended from time to
time, subject to any permissible expansion or limitation of such indemnification, as may be set forth in any stockholders’
or directors’ resolution or by contract.

 

We
also have director and officer indemnification agreements with each of our executive officers and directors that provide, among
other things, for the indemnification to the fullest extent permitted or required by Delaware law, provided that such indemnitee
shall not be entitled to indemnification in connection with any proceedings or claims initiated or brought voluntarily by the
indemnitee and not by way of defense, unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding
was authorized by our Board of Directors, (iii) indemnification is provided by us, in our sole discretion, pursuant to powers
vested in us under the DGCL, or (iv) the proceeding is brought to establish or enforce a right to indemnification under the indemnification
agreement or any other statute or law or otherwise as required under Section 145 of the DGCL. We are not required to indemnify
the indemnitee for any amounts paid in settlement of a proceeding unless we consent to such settlement.

 

Any
repeal or modification of these provisions approved by our stockholders shall be prospective only, and shall not adversely affect
any limitation on the liability of a director or officer existing as of the time of such repeal or modification.

 

We
have purchased and intend to maintain insurance on our behalf and on behalf of any person who is or was a director or officer
against any loss arising from any claim asserted against him or her and incurred by him or her in that capacity, subject to certain
exclusions and limits of the amount of coverage.

 

Listing;
Transfer Agent

 

Our
common stock is listed on The NASDAQ Global Market under the symbol “HROW”. The transfer agent and registrar for our
common stock is Action Stock Transfer Corporation, 2469 E. Fort Union Blvd., Suite 214, Salt Lake City, UT 84121.

 

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