Document:

Exhibit

EXECUTIVE OFFICER
CHANGE IN CONTROL SEVERANCE AGREEMENT

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”), effective as of September 13, 2019 (the “Effective Date”), is made by and between FARMER BROS. CO., a Delaware corporation (the “Company”), and DEVERL MASERANG (the “Executive”).
 
WHEREAS, the Company considers it essential to foster the continued employment of well qualified, senior executive management personnel; and
 
WHEREAS, the Company has determined that appropriate steps should be taken to foster such continued employment by setting forth the benefits and compensation to be awarded to such personnel in the event of a voluntary or involuntary termination within the meaning of this Agreement; and
 
WHEREAS, the Company further recognizes that the possibility of a Change in Control of the Company exists and that such possibility, and the uncertainty and questions that it may raise among executive management, may result in the departure or distraction of executive personnel to the detriment of the Company; and
 
WHEREAS, the Company has further determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s executive management, including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control;
 
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Company and the Executive hereby agree as follows:
 
1.    Term of Agreement. The term of this Agreement shall commence as of the date hereof and expire on the close of business on December 31, 2022; provided, however, that (i) commencing on January 1, 2023 and each January 1 thereafter, the term of this Agreement will automatically be extended for an additional year unless, not later than September 30 of the immediately preceding year, the Company (provided no Change in Control has occurred and no Threatened Change in Control is pending) or the Executive shall have given notice that it or the Executive, as the case may be, does not wish to have the Term extended; (ii) if, prior to a Change in Control, the Executive ceases for any reason to be an employee of the Company, thereupon without further action the Term shall be deemed to have expired and this Agreement will immediately terminate and be of no further effect.
 
2.    Definitions
 
(a)    “Base Salary” shall mean the Executive’s salary, which excludes Bonuses, at the rate in effect when an event triggering benefits under Section 3 of this Agreement occurs.
 
(b)    “Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the Exchange Act.
 
(c)    “Board” or “Board of Directors” shall mean the Board of Directors of Farmer Bros. Co., or its successor.

(d)    “Bonus(es)” shall mean current cash compensation over and above Base Salary whether awarded under the Company’s Incentive Compensation Plan or otherwise awarded.

(e)    “Cause” shall mean:
 
(i)    the Executive’s material fraud, malfeasance, or gross negligence, willful and material neglect of Executive’s employment duties or Executive’s willful and material misconduct with respect to business affairs of the Company or any subsidiary of the Company or

(ii)    Executive’s conviction of or failure to contest prosecution for a felony or a crime involving moral turpitude.
 
A termination of Executive for “Cause” based on clause (i) of the preceding sentence can be made only by delivery to Executive of a resolution duly adopted by the affirmative vote of not less than three quarters of the Board then in office at a meeting of the Board called and held for such purpose, after reasonable notice to the Executive and an opportunity for the Executive, together with the Executive’s counsel (if the Executive chooses to have counsel present at such meeting), to be heard before the Board, finding that, in the good faith opinion of the Board, the Executive had committed an act constituting “Cause” as herein defined and specifying the particulars thereof in detail.  Nothing herein will limit the right of the Executive or his beneficiaries to contest the validity or propriety of any such determination.   A termination for Cause based on clause (ii) above shall take effect immediately upon giving of the termination notice. No act or omission shall be deemed “willful” if it was due primarily to an error in judgment or ordinary negligence.
 
(f)    “Change in Control” shall mean:
 
(i)    An acquisition by any Person (as such term is defined in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof) of Beneficial Ownership of the Shares then outstanding (the “Company Shares Outstanding”) or the voting securities of the Company then outstanding entitled to vote generally in the election of directors (the “Company Voting Securities Outstanding”), if such acquisition of Beneficial Ownership results in the Person beneficially owning (within the meaning of Rule 13d-3 promulgated under the Exchange Act) fifty percent (50%) or more of the Company Shares Outstanding or fifty percent (50%) or more of the combined voting power of the Company Voting Securities Outstanding; excluding, however, any such acquisition by a trustee or other fiduciary holding such Shares under one or more employee benefit plans maintained by the Company or any of its subsidiaries; or
 
(ii)    The approval of the stockholders of the Company of a reorganization, merger, consolidation, complete liquidation, or dissolution of the Company, the sale or disposition of all or substantially all of the assets of the Company or any similar corporate transaction (in each case referred to in this Section 2(f) as a “Corporate Transaction”), other than a Corporate Transaction that would result in the outstanding common stock of the Company immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into common stock of the surviving entity or a parent or affiliate thereof) at least fifty percent (50%) of the outstanding common stock of the Company or such surviving entity or parent or affiliate thereof immediately after such Corporate Transaction; provided, however, if the consummation of such Corporate Transaction is subject, at the time of such approval by stockholders, to the consent of any government or governmental agency, the Change in Control shall not occur until the obtaining of such consent (either explicitly or implicitly); or
 
(iii)    A change in the composition of the Board such that the individuals who, as of the Effective Date, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section 2(f) that any individual who becomes a member of the Board subsequent to the Effective Date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, including any successor to such Rule), or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board, shall not be so considered as a member of the Incumbent Board.
 
(g)    “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

(h)    “Disability” shall mean the Executive’s inability as a result of physical or mental incapacity to substantially perform his duties for the Company on a full-time basis for a period of six (6) months.

(i)    “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

(j)    “Involuntary Termination” shall mean a termination of the Executive’s employment by the Company that occurs for reasons other than for Cause, Disability or death.

(k)    “Threatened Change in Control” shall mean any bona fide pending tender offer for any class of the Company’s outstanding Shares, or any pending bona fide offer to acquire the Company by merger or consolidation, or any other pending action or plan to effect, or which would lead to, a Change in Control of the Company as determined by the Incumbent Board. A Threatened Change in Control Period shall commence on the first day the actions described in the preceding sentence become manifest and shall end when such actions are abandoned or the Change in Control occurs.

(l)    “Shares” shall mean the shares of common stock of the Company.

(m)    “Resignation for Good Reason” shall mean a termination of the Executive’s employment by the Executive due to:

(i)    a significant reduction of the Executive’s responsibilities, duties or authority;

(ii)    a material reduction in the Executive’s Base Salary; 

(iii)    a Company-required material relocation of the Executive’s principal place of employment; or
(iv)    circumstances constituting “Good Reason” under the Employment Agreement between the Company and the Executive entered into concurrently herewith; 

provided, however, that any such condition shall not constitute “Good Reason” unless both (x) the Executive provides written notice to the Company describing the condition claimed to constitute Good Reason in reasonable detail within ninety (90) days of the initial existence of such condition, and (y) the Company fails to remedy such condition within thirty (30) days of receiving such written notice thereof; and provided, further, that in all events the termination of the Executive’s employment with the Company shall not be treated as a termination for “Good Reason” unless such termination occurs not more than one (1) year following the initial existence of the condition claimed to constitute “Good Reason.

3.    Events That Trigger Benefits Under This Agreement.  The Executive shall be eligible for the compensation and benefits described in Section 4 of this Agreement as follows:
 
(a)    A Change in Control occurs and Executive’s employment is Involuntarily Terminated or terminated by Resignation for Good Reason within twenty-four (24) months following the occurrence of the Change in Control; or

(b)    A Threatened Change in Control occurs and the Executive’s employment is Involuntarily Terminated or terminated by Resignation for Good Reason during the Threatened Change in Control Period.
 
4.    Benefits Upon Termination.  If the Executive becomes eligible for benefits under Section 3 above, the Company shall pay or provide to the Executive the following compensation and benefits:
 
(a)    Severance.  The Executive will receive as severance an amount equal to two times the sum of (i) the Executive’s Base Salary, plus (ii) an amount equal to the Executive’s target Bonus for the fiscal year in which the date of termination occurs, payable in a lump sum ,subject to Section 9(j)(ii), within thirty (30) days after Executive’s Separation from Service occurs.  The Executive shall also receive a payment equal to one hundred percent (100%) of the Executive’s target Bonus for the fiscal year in which the date of termination occurs prorated for the period that the Executive was employed during such fiscal year, such payment to be made, subject to Section 9(j)(ii), in a lump sum within thirty (30) days after the end of the Company’s fiscal year in which the Executive’s date of termination occurs.  As used herein, a “Separation from Service” occurs when the Executive dies, retires, or otherwise has a termination of employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder. For purposes of foregoing, if no target Bonus for the fiscal year has been assigned to the Executive as of the date of termination, the target Bonus for the most recently completed fiscal year shall be used. 

(b)    Qualified and Non-Qualified Plan Coverage.  Subject to the eligibility provisions of the plans, the Executive shall continue to participate in the tax-qualified and non-qualified retirement, savings and employee stock ownership plans of the Company during the twenty four (24) month period following the Executive’s date of termination unless the Executive commences employment prior to the end of the twenty four (24) month period, in which case, such participation shall end on the date of his new employment. The Executive shall inform the Company promptly upon commencing new employment.

(c)    Health, Dental, and Life Insurance Coverage.  The health, dental, and life insurance benefits coverage provided to the Executive at his date of termination shall be continued by the Company during the twenty-four (24) month period following the Executive’s date of termination unless the Executive commences employment prior to the end of the twenty four (24) month period and qualifies for substantially equivalent insurance benefits with the Executive’s new employer , in which case, such insurance coverages shall end on the date of qualification.  The Executive shall inform the Company promptly of his qualification for any of such insurance coverages. The Company shall provide for such insurance coverages at its expense at the same level and in the same manner as if the Executive’s employment had not terminated (subject to the customary changes in such coverages if the Executive retires under a Company retirement plan, reaches age 65, or similar events and subject to Executive’s right to make any changes in such coverages that an active employee is permitted to make). Any additional coverages the Executive had at termination, including dependent coverage, will also be continued for such period on the same terms, to the extent permitted by the applicable policies or contracts. Any costs the Executive was paying for such coverages at the time of termination shall be paid by the Executive by separate check payable to the Company each month in advance. If the terms of any benefit plan referred to in this Section do not permit continued participation by the Executive, the Company will arrange for other coverage at its expense providing substantially similar benefits. If the Executive is covered by a split-dollar or similar life insurance program at the date of termination, he shall have the option in his sole discretion to have such policy transferred to him upon termination, provided that the Company is paid for its interest m the policy upon such transfer.

(d)    Outplacement Services.  The Company shall provide the Executive with outplacement services by a firm selected by the Executive, at the expense of the Company, in an amount up to $25,000.

(e)    No Mitigation Obligation.  The Company hereby acknowledges that it will be difficult and may be impossible for the Executive to find reasonably comparable employment following termination of Executive’s employment by the Company and that the non-solicitation covenant contained in Section 6 may further limit the employment opportunities for the Executive.  Accordingly, the payment of the compensation and benefits by the Company to the Executive in accordance with the terms of this Agreement is hereby acknowledged by the Company to be reasonable, and the Executive will not be required to mitigate the amount of any payment provided for this Agreement by seeking other employment or otherwise, nor will any profits, income, earnings or other benefits from any source whatsoever create any mitigation, offset, reduction or any other obligation on the part of the Executive hereunder or otherwise, except as expressly provided in the first sentence of Section 4(c).

(f)    Equity Awards.  The vesting, payment and adjustment of any stock options, restricted stock units or other equity compensation awards will be governed by the terms of the Company’s equity compensation plans and the award agreements applicable to such awards.

5.    Parachute Payments.  Notwithstanding anything contained in this Agreement to the contrary, in the event that the compensation and benefits provided for in this Agreement to Executive together with all other payments and the value of any benefit received or to be received by Executive:

(a)    constitute “parachute payments” within the meaning of Section 280G of the Code, and

(b)    but for this Section, would be subject to the excise tax imposed by Section 4999 of the Code, the Executive’s compensation and benefits pursuant to the terms of this Agreement shall be payable either:

(i)    in full, or

(ii)    in such lesser amount which would result in no portion of such compensation and benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of compensation and benefits under this Agreement, notwithstanding that all or some portion of such compensation and benefits may be subject to the excise tax imposed under Section 4999 of the Code.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section 5 shall be made in writing by the Company’s independent public accountants serving immediately before the Change in Control (the “Accountants”), whose determination shall be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making the calculations required by this Section 5, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable good faith interpretations concerning the applications of Section 280G and 4999 of the Code.  The Company shall cause the Accountants to provide detailed supporting calculations of its determination to Executive and the Company.  Executive and the Company shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 5.
 
6.    Obligation Not to Solicit
 
(a)    Executive hereby agrees that while Executive is receiving compensation and benefits under this Agreement, Executive shall not in any manner attempt to induce or assist others to attempt to induce any officer, employee, customer or client of the Company to terminate its association with the Company, nor do anything directly or indirectly to interfere with the relationship between the Company and any such persons or concerns.
 
(b)    In the event that the Executive engages in any activity in violation of Section 6(a), all compensation and benefits described in Section 4 shall immediately cease.
 
7.    Confidentiality.  The terms of this Agreement are to be of the highest confidentiality. In order to insure and maintain such confidentiality, it is agreed that neither party, including all persons and entities under a party’s control, shall, directly or indirectly, publicize or disclose to third persons the terms of this Agreement or the substance of negotiations with respect to it; provided, however, that nothing herein shall be construed to prevent disclosures which are reasonably necessary to enforce the terms of this Agreement or which are otherwise required by law to be made to governmental agencies or others; moreover, nothing herein shall be construed to prevent the parties hereto, or their attorneys, from making such disclosures for legitimate business purposes to their respective insurers, financial institutions, accountants and attorneys or, in the case of a corporation, limited liability company or partnership, to its respective officers, directors, employees, managers, members and agents or any of its respective subsidiaries, group or divisions, provided that each such recipient of such disclosures agrees to be bound by the requirements concerning disclosure of confidential information as set forth in this Paragraph 7. Further, nothing contained in this Agreement is intended to or shall be construed as prohibiting Executive from voluntarily communicating with the U.S. Securities and Exchange Commission (“Commission”) about possible violations of law or from accepting a Commission whistleblower award.
 
8.    Settlement of Disputes; Arbitration

(a)    All disputes arising under or in connection with this Agreement, shall be submitted to a mutually agreeable arbitrator, or if the parties are unable to agree on an arbitrator within fifteen (15) days after a written demand for arbitration is made by either party, to JAMS/Endispute (“JAMS”) or successor organization, for binding arbitration in Dallas County by a single arbitrator who shall be a former Texas District Court judge. Except as may be otherwise provided herein, the arbitration shall be conducted under the Texas Arbitration Act. The arbitration hearing shall be commenced within ninety (90) days after the selection of an arbitrator by mutual agreement or, absent such mutual agreement, the filing of the application with JAMS by either party hereto, and a decision shall be rendered by the arbitrator within thirty (30) days after the conclusion of the hearing. The arbitrator shall have complete authority to interpret this Section 8(a) and to render any and all relief, legal and equitable, appropriate under Texas law, including the award of punitive damages where legally available and warranted. The arbitrator shall award costs of the proceeding, including reasonable attorneys’ fees and the arbitrator’s fee and costs, to the party determined to have substantially prevailed. Judgment on the award can be entered in a court of competent jurisdiction.
 
(b)    The foregoing notwithstanding, if the amount in controversy exceeds $200,000, exclusive of attorneys’ fees and costs, the matter shall be litigated in the Dallas County District Court as a regular non-jury civil action except that a former Texas District Court Judge selected by the parties or by JAMS, as hereinabove provided, shall be appointed as referee to try all issues of fact and law, without a jury. The parties hereto expressly waive a trial by jury. Judgment entered on the decision of the referee shall be appealable as a judgment of the District Court. The prevailing party shall be entitled to receive its reasonable attorneys’ fees and costs from the other party.

9.    Miscellaneous

(a)    Notices. Any notice or other communication required or permitted under this Agreement shall be effective only if it is in writing and shall be deemed to have been duly given when delivered personally or seven days after mailing if mailed first class by registered or certified mail, postage prepaid, addressed as follows:
 
If to the Company:    Farmer Bros. Co
1912 Farmer Brothers Drive
Northlake, TX 76262
Attn: Chief Executive Officer

with a copy to:        Farmer Bros. Co
1912 Farmer Brothers Drive
Northlake, TX 76262
Attn: Legal Department

		
	If to the Executive:
	Deverl Maserang 

At the most recent address on file with the Company
                                                
or to such other address as any party may designate by notice to the others.

(b)    Assignment.  This Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective executors, administrators, heirs, personal representatives, and successors, but, except as hereinafter provided, neither this Agreement nor any right hereunder may be assigned or transferred by either party thereto, or by any beneficiary or any other person, nor be subject to alienation, anticipation, sale, pledge, encumbrance, execution, levy, or other legal process of any kind against the Executive, his beneficiary or any other person. Notwithstanding the foregoing, any person or business entity succeeding to substantially all of the business of the Company by purchase, merger, consolidation, sale of assets, or otherwise, shall be bound by and shall adopt and assume this Agreement and the Company shall cause the assumption of this Agreement by such successor. If Executive shall die while any amount would still be payable to Executive hereunder (other than amounts that, by their terms, terminate upon the death of Executive) if Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of Executive’s estate.

(c)    No Obligation to Fund.  The agreement of the Company (or its successor) to make payments to the Executive hereunder shall represent solely the unsecured obligation of the Company (and its successor), except to the extent the Company (or its successors) in its sole discretion elects in whole or in part to fund its obligations under this Agreement pursuant to a trust arrangement or otherwise.
 
(d)    Applicable Law.  This Agreement was negotiated, entered into and is performable, in whole or in part, in Texas and therefore shall be governed by and construed and enforced in accordance with the laws of the State of Texas, without giving effect to conflict of law principles..

(e)    Amendment.  This Agreement may only be amended by a written instrument signed by the parties hereto, which makes specific reference to this Agreement.

(f)    Severability.  If any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provisions hereof.

(g)    Withholding.  The Company shall have the right to withhold any and all local, state and federal taxes which may be withheld in accordance with applicable law.

(h)    Other Benefits.  Nothing in this Agreement shall limit or replace the compensation or benefits payable to Executive, or otherwise adversely affect Executive’s rights, under any other benefit plan, program, or agreement to which Executive is a party.

(i)    Employment Rights.  Nothing expressed or implied in this Agreement will create any right or duty on the part of the Company or the Executive to have the Executive remain in the employment of the Company or any Subsidiary prior to or following any Change in Control. The Company and Executive are parties to an Employment Agreement executed concurrently herewith. Except as provided in Section 12 of the Employment Agreement, the provisions of the Employment Agreement and this Agreement are cumulative. 

(j)    Section 409A

(i)    It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) (“Code Section 409A”) so as not to subject the Executive to payment of any additional tax, penalty or interest imposed under Code Section 409A.  The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to the Executive.

(ii)    Notwithstanding any provision of this Agreement to the contrary, if the Executive is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Executive’s Separation from Service, the Executive shall not be entitled to any payment or benefit pursuant to Section 4 until the earlier of (i) the date which is six (6) months after the Executive’s Separation from Service for any reason other than death, or (ii) the date of the Executive’s death.  Any amounts otherwise payable to the Executive upon or in the six (6) month period following the Executive’s Separation from Service that are not so paid by reason of this Section 9(j)(ii) shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Executive’s Separation from Service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of the Executive’s death).  The provisions of this Section 9(j)(ii) shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A.

(iii)    To the extent that any benefits or reimbursements pursuant to Section 4(c) or Section 4(d) are taxable to the Executive, any reimbursement payment due to the Executive pursuant to any such provision shall be paid to the Executive on or before the last day of the Executive’s taxable year following the taxable year in which the related expense was incurred.  The benefits and reimbursements pursuant to such provisions are not subject to liquidation or exchange for another benefit and the amount of such benefits and reimbursements that the Executive receives in one taxable year shall not affect the amount of such benefits or reimbursements that the Executive receives in any other taxable year.

[SIGNATURES FOLLOW]

1
EXECUTIVE OFFICER CHANGE IN CONTROL SEVERANCE AGREEMENT – MASERANG
US-DOCS\110638688.8

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly authorized officers and the Executive has hereunder set his hand, as of the date first above written.

Company:                    FARMER BROS. CO.
a Delaware corporation

By:    /s/ Randy Clark                                                    
Name:    Randy Clark                          
Title:    Chairman                           

Executive:                     /s/ Deverl Maserang                                 
Deverl Maserang

2
EXECUTIVE OFFICER CHANGE IN CONTROL SEVERANCE AGREEMENT – MASERANG
US-DOCS\110638688.8Exhibit

Exhibit 4.1

Prepared by:  /s/ JOHN C. HALDERMAN              
John C. Halderman
Assistant General Counsel
PECO Energy Company
2301 Market Street
Philadelphia, PA 19103
(215) 841-4263
Return to:    John C. Halderman
Assistant General Counsel
PECO Energy Company
2301 Market Street
Philadelphia, PA 19103
(215) 841-4263

Counterpart ______ of 30
PECO ENERGY COMPANY
TO
U.S. BANK NATIONAL ASSOCIATION, TRUSTEE 
______________________ 
 
ONE HUNDRED AND SEVENTEENTH SUPPLEMENTAL  
INDENTURE DATED AS OF  
AUGUST 15, 2019
TO
FIRST AND REFUNDING MORTGAGE
OF
THE COUNTIES GAS AND ELECTRIC
COMPANY
TO
FIDELITY TRUST COMPANY, TRUSTEE 
DATED MAY 1, 1923
__________________
3.000% SERIES DUE 2049 
(New Series)

    

Exhibit 4.1

PECO ENERGY COMPANY
TO
U.S. BANK NATIONAL ASSOCIATION, TRUSTEE 

______________________ 
 

ONE HUNDRED AND SEVENTEENTH SUPPLEMENTAL  
INDENTURE DATED AS OF  
AUGUST 15, 2019 
 
TO
FIRST AND REFUNDING MORTGAGE
OF
THE COUNTIES GAS AND ELECTRIC  
COMPANY
TO
FIDELITY TRUST COMPANY, TRUSTEE 
DATED MAY 1, 1923
__________________

3.000% SERIES DUE 2049
(New Series)

    

THIS SUPPLEMENTAL INDENTURE dated as of August 15, 2019 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:
	
			
	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

    1

	
			
	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*

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

    2

	
			
	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*

    3

	
			
	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*

	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*

    4

	
			
	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*

    5

	
			
	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*

	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*

    6

	
			
	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*

    7

	
			
	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*

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

    8

	
			
	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*

    9

	
			
	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*

    10

	
			
	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*

	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*

    11

	
			
	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*

    12

	
			
	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*

    13

	
			
	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)

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

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
	

	 
	Total
	$
	3,075,000,000
	

	 

    14

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, 3.000% Series due 2049 (hereinafter sometimes called the “bonds of the New Series” or the “bonds of the 3.000% Series due 2049”); 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:
(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,
3.000% SERIES DUE 2049, 
DUE SEPTEMBER 15, 2049
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 September 15, 2049, 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 

    15

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 3.000 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 March 15, 2020, 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]

    16

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 President or a Vice President, duly attested by the manual or facsimile signature of its Secretary or an Assistant Secretary.
Dated:
PECO ENERGY COMPANY

By_________________________________
President or Vice President

Attest______________________________
Secretary or Assistant Secretary

    17

(Form of Reverse of Bond)
PECO ENERGY COMPANY
First and Refunding Mortgage Bond,
3.000% Series Due 2049, 
Due September 15, 2049
(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, 3.000% Series due 2049 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 September 15, 2049, 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 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 March 15, 2049, 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 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 

    18

be due if such bonds matured on March 15, 2049 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 20 basis points, plus accrued interest to the redemption date.  At any time on or after March 15, 2049 the redemption price shall be equal to 100% of the principal amount of the bonds to be redeemed, plus accrued interest to 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 (assuming for these purposes that the bonds mature on March 15, 2049) of this series 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 BofA Securities, Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC and their respective successors and affiliates, unless such entity ceases to be a primary U.S. Government securities dealer in New York City (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 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.

    19

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) 

    20

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 Seventeenth Supplemental Indenture dated as of August 15, 2019.
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. 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.:

    21

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 by‐products 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, 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 by‐products and residual products of electricity and electrical energy, 

    22

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 after‐acquired 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;
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 

    23

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:
“3.000% Series due 2049”
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 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 September 10, 2019.  The bonds of the New Series shall mature on September 15, 2049.
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 

    24

March 15 and September 15 of each year, beginning on March 15, 2020, 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 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 

    25

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 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 

    26

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 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, 

    27

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 $325,000,000 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 (d) 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 forty‐five (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 March 15, 2049 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 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 March 15, 2049 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 20 basis points, plus accrued interest to the redemption date.  At any time on or after March 15, 2049 the redemption price shall be equal to 100% of the principal amount of the bonds to be redeemed, plus accrued interest to 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.

    28

“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 (assuming for these purposes that the bonds mature on March 15, 2049) of this series 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 BofA Securities, Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC and their respective successors and affiliates, unless such entity ceases to be a primary U.S. Government securities dealer in New York City (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 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.
Section 2.  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.

    29

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.”

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.

    30

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 is dated and shall be effective as of August 15, 2019, but was actually executed and delivered on September 3, 2019.

[Remainder of this page intentionally left blank]

    31

IN WITNESS WHEREOF, the President or a Vice President of the party of the first part and the President or a Vice President of the party of the second part, under and by the authority vested in them, have hereto affixed their signatures and their Secretaries or Assistant Secretaries have duly attested the execution hereof the 3rd day of September, 2019.

PECO ENERGY COMPANY

By  /s/ Robert J. Stefani                              
Robert J. Stefani
Senior Vice President,
Chief Financial Officer and 
Treasurer

Attest  /s/ John C. Halderman                      
John C. Halderman
Assistant Secretary

U.S. BANK NATIONAL ASSOCIATION, Trustee

By  /s/ George J. Rayzis                               
George J. Rayzis
Vice President

Attest  /s/ Gregory P. Guim                         
Authorized Officer

    32

COMMONWEALTH OF PENNSYLVANIA    :
:  SS.
COUNTY OF PHILADELPHIA        :

On this, the 3rd day of September, 2019, before me, a Notary Public in and for the Commonwealth of Pennsylvania, the undersigned officer, personally appeared Robert J. Stefani who acknowledged himself to be the Senior Vice President, Chief Financial Officer and Treasurer 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.

         /s/ Chanane Williams           
Notary Public
My Commission expires: March 16, 2021
[NOTARIAL SEAL]

    33

COMMONWEALTH OF PENNSYLVANIA:
:  SS.
COUNTY OF PHILADELPHIA        :

On this, the 3rd day of September, 2019, 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.

           /s/ John Cuotee               
Notary Public
My Commission expires: February 7, 2020
[NOTARIAL SEAL]

    34

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    /s/ George J. Rayzis                           
George J. Rayzis
Vice President

    35

Exhibit 4.1

PECO ENERGY COMPANY
TO
U.S. BANK NATIONAL ASSOCIATION, TRUSTEE
______________________ 
 

ONE HUNDRED AND SEVENTEENTH SUPPLEMENTAL  
INDENTURE DATED AS OF  
AUGUST 15, 2019 
 
TO
FIRST AND REFUNDING MORTGAGE
OF
THE COUNTIES GAS AND ELECTRIC  
COMPANY
TO
FIDELITY TRUST COMPANY, TRUSTEE 
DATED MAY 1, 1923
__________________

3.000% SERIES DUE 2049

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00299-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00299-of-00352.parquet"}]]