Document:

Exhibit

THE DAYTON POWER AND LIGHT COMPANY 
 
 
AND 
 
 
THE BANK OF NEW YORK MELLON 
(formerly The Bank of New York)
Trustee
                                                                                                                                        
Fiftieth Supplemental Indenture
                                                                                                                                            
Dated as of August 1, 2016

    

TABLE OF CONTENTS
Page
		
	FIRST.  REAL PROPERTY AND INTERESTS IN REAL PROPERTY.
	5

		
	SECOND.  ELECTRIC GENERATING PLANTS.
	5

		
	THIRD.  TRANSMISSION LINES.
	5

		
	FOURTH.  SUBSTATIONS AND SUBSTATION SITES.
	6

		
	FIFTH.  ELECTRIC DISTRIBUTION SYSTEMS.
	6

		
	SIXTH.  LIQUEFIED PETROLEUM GAS PRODUCTION AND STORAGE FACILITIES.
	6

		
	SEVENTH.  GAS DISTRIBUTION SYSTEMS.
	6

		
	EIGHTH.  OFFICE AND DEPARTMENTAL BUILDINGS.
	7

		
	NINTH.  TELEPHONE LINES.
	7

		
	TENTH.  FRANCHISES.
	7

		
	ELEVENTH.  OTHER REAL ESTATE AND APPURTENANCES.
	7

		
	TWELFTH.  PROPERTY HEREAFTER TO BECOME SUBJECT TO THE LIEN OF THE FIRST MORTGAGE AS AMENDED.
	8

		
	SECTION 1.
	Amendments to First Mortgage    13

		
	SECTION 2.
	Amendments to Article One of First Mortgage    14

		
	SECTION 3.
	Amendments to Article One of First Mortgage    16

		
	SECTION 4.
	Amendments to Article Six of First Mortgage    17

		
	SECTION 5.
	Amendments to Section 3 of Article Eleven of First Mortgage    17

		
	SECTION 6.
	Amendments to Section 1 of Article Fifteen of First Mortgage    19

		
	SECTION 7.
	Effectuating Provisions; Required Consent    19

ARTICLE FIVE        19
		
	SECTION 1.
	Confirmation of Covenants by the Company in First Mortgage    19

		
	SECTION 2.
	Covenant of the Company and Legal Opinion as to Recording    19

ARTICLE SIX        20
		
	SECTION 3.
	Authentication and Delivery of New Bonds in Advance of the Recording of Fiftieth Supplemental Indenture    20

		
	SECTION 4.
	Fiftieth Supplemental Indenture to Form Part of First Mortgage    20

		
	SECTION 5.
	Definitions in First Mortgage Shall Apply to Fiftieth Supplemental Indenture    20

		
	SECTION 6.
	Execution in Counterparts    20

i

Testimonium
Signatures
Acknowledgments

EXHIBITS
Exhibit A – Form First Mortgage Bond, Variable Rate Series 2016 Due 2022

ii

FIFTIETH SUPPLEMENTAL INDENTURE, dated as of August 1, 2016, between THE DAYTON POWER AND LIGHT COMPANY, a corporation of the State of Ohio (hereinafter sometimes called the “Company”), party of the first part, and THE BANK OF NEW YORK MELLON (formerly The Bank of New York), a corporation of the State of New York (hereinafter called the “Trustee”), as Trustee, party of the second part, whose mailing address is 101 Barclay Street, New York, New York 10286. 
WHEREAS, the Company has heretofore executed and delivered to Irving Trust Company (now The Bank of New York Mellon) a certain Indenture, dated as of October 1, 1935 (hereinafter called the “First Mortgage”), to secure the payment of the principal of and interest on an issue of bonds of the Company, unlimited in aggregate principal amount (hereinafter sometimes called the “Bonds”); and
WHEREAS, the Company has issued under the First Mortgage its Bonds of a series known as the First and Refunding Mortgage Bonds, 31⁄2% Series Due 1960, authorized in unlimited aggregate principal amount, all of which have been redeemed or otherwise retired; and
WHEREAS, in Article Two of the First Mortgage it is provided in substance, among other things, that the Bonds may be issued in series, the Bonds of each series maturing on such dates and bearing interest at such rates, respectively, as the Board of Directors of the Company may determine prior to the authentication thereof; and
WHEREAS, the Company has heretofore executed and delivered to the Trustee forty-nine supplemental Indentures numbered, dated and, except as set forth below, providing for their respective series of Bonds, all as set forth in the tabulation below:
	
				
	Supplemental Indenture
	Dated As Of
	Series Provided For
	Principal Amount Outstanding

	First
	March 1, 1937
	31⁄4% Series Due 1962
	None

	Second
	January 1, 1940
	3% Series Due 1970
	None

	Third
	October 1, 1945
	23⁄4% Series Due 1975
	None

	Fourth
	January 1, 1948
	3% Series Due 1978
	None

	Fifth
	December 1, 1948
	3% Series A Due 1978
	None

	Sixth
	February 1, 1952
	31⁄4% Series Due 1982
	None

	Seventh
	September 1, 1954
	3% Series Due 1984
	None

	Eighth
	November 1, 1957
	5% Series Due 1987
	None

	Ninth
	March 1, 1960
	51⁄8% Series Due 1990
	None

	Tenth
	June 1, 1963
	4.45% Series Due 1993
	None

	Eleventh
	May 1, 1967
	55⁄8% Series Due 1997
	None

	Twelfth
	June 15, 1968
	63⁄4% Series Due 1998
	None

	Thirteenth
	October 1, 1969
	81⁄4% Series Due 1999
	None

	Fourteenth
	June 1, 1970
	91⁄2% Series Due 2000
	None

	Fifteenth
	August 1, 1971
	8% Series Due 2001
	None

	Sixteenth
	October 3, 1972
	None issued
	None

	Seventeenth
	November 1, 1973
	8% Series Due 2003
	None

	Eighteenth
	October 1, 1974
	101⁄8% Series Due 1981
	None

	Nineteenth
	August 1, 1975
	10.70% Series Due 2005
	None

	Twentieth
	November 15, 1976
	83⁄4% Series Due 2006
	None

	Twenty-First
	April 15, 1977
	6.35% Series Due 2007
	None

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	Twenty-Second
	October 15, 1977
	81⁄2% Series Due 2007
	None

	Twenty-Third
	April 1, 1978
	8.95% Series Due 1998
	None

	Twenty-Fourth
	November 1, 1978
	91⁄2% Series Due 2003
	None

	Twenty-Fifth
	August 1, 1979
	101⁄4% Series Due 1999
	None

	Twenty-Sixth
	December 1, 1979
	121⁄8% Series Due 2009
	None

	Twenty-Seventh
	February 1, 1981
	145⁄8% Series Due 1988
	None

	Twenty-Eighth
	February 18, 1981
	145⁄8% Series Due 1988
	None

	Twenty-Ninth
	September 1, 1981
	17% Series Due 1991
	None

	Thirtieth
	March 1, 1982
	163⁄4% Series Due 2012
	None

	Thirty-First
	November 1, 1982
	111⁄2% Series Due 2012-A
	None

	Thirty-Second
	November 1, 1982
	111⁄2% Series Due 2012-B
	None

	Thirty-Third
	December 1, 1985
	91⁄2% Series Due 2015
	None

	Thirty-Fourth
	April 1, 1986
	9% Series Due 2016
	None

	Thirty-Fifth
	December 1, 1986
	87⁄8% Series Due 2016
	None

	Thirty-Sixth
	August 15, 1992
	6.40% Pollution Control Series 1992-A Due 2027
	None

	 
	 
	6.40% Pollution Control Series 1992-B Due 2027
	None

	Thirty-Seventh
	November 15, 1992
	6.50% Pollution Control Series 1992-C Due 2022
	None

	Thirty-Eighth
	November 15, 1992
	8.40% Series Due 2022
	None

	Thirty-Ninth
	January 15, 1993
	8.15% Series Due 2026
	None

	Fortieth
	February 15, 1993
	77⁄8% Series Due 2024
	None

	Forty-First
	February 1, 1999
	None issued
	None

	Forty-Second
	September 1, 2003
	5.125% Series Due 2013
	None

	Forty-Third
	August 1, 2005
	4.80% Pollution Control Series 2005-A Due 2034
	None

	 
	 
	4.80% Pollution Control Series 2005-B Due 2034
	None

	 
	 
	4.70% Pollution Control Series 2005-C Due 2028
	None

	Forty-Fourth
	September 1, 2006
	4.80% Pollution Control Series 2006 Due 2036
	$100,000,000

	Forty-Fifth
	November 1, 2007
	Variable Rate Pollution Control Series 2007 Due 2040
	None

	Forty-Sixth
	December 1, 2008
	Variable Rate Pollution Control  
Series 2008-A Due 2040
	None

	 
	 
	Variable Rate Pollution Control  
Series 2008-B Due 2040
	None

	Forty-Seventh
	September 1, 2013
	1.875% Series Due 2016
	$445,000,000

	Forty-Eighth
	August 1, 2015
	Variable Rate Pollution Control  
Series 2015-A Due 2040
	$100,000,000

	Forty-Ninth
	August 1, 2015
	Variable Rate Pollution Control  
Series 2015-B Due 2040
	$100,000,000

WHEREAS, said Eleventh Supplemental Indenture, which created the 55⁄8% Series Due 1997, provided in its Article Three for certain amendments to the First Mortgage, as theretofore amended, each such amendment to become effective on the earliest date on which either (a) there shall not be any Bonds outstanding of Series Due 1975, Series Due 1978, Series A, Due 1978, Series Due 1982, Series Due 1984, or Series Due 1993, or (b) there shall have been executed and delivered a supplemental indenture or indentures embodying said amendment (either alone or with other amendments) consented to by the holders of seventy-five per centum (75%) in aggregate principal amount of the Bonds at the time outstanding of the series enumerated in the foregoing clause (a), or of each said series of which Bonds are then outstanding; and
WHEREAS, said Fifteenth Supplemental Indenture, which created the 81⁄8% Series Due 2001, provided (a) in its Article Four for an amendment to the First Mortgage, as theretofore amended, to become 

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effective on the date on which the amendments provided for by Section 3 of Article Three of said Eleventh Supplemental Indenture shall become effective and (b) in its Article Five for certain additional amendments to the First Mortgage, as theretofore amended, to become effective on the earliest date on which either (i) there shall not be any Bonds outstanding of Series Due 1975, Series Due 1978, Series A, Due 1978, Series Due 1982, Series Due 1984, Series Due 1993, Series Due 1997, Series Due 1998, Series Due 1999, or Series Due 2000, or (ii) there shall have been executed and delivered a supplemental indenture or indentures embodying said amendments (either alone or with other amendments) consented to by the holders of seventy-five per centum (75%) in aggregate principal amount of the Bonds at the time outstanding of the series enumerated in the foregoing clause (i), or of each said series of which Bonds are then outstanding; and
WHEREAS, the Company has heretofore executed and delivered to the Trustee a Sixteenth Supplemental Indenture dated as of October 3, 1972, which provided in its Article One for an amendment of Article Five of the First Mortgage, as theretofore amended, altering the requirements for the opinion of counsel to be delivered to the Trustee as a condition precedent to the authentication and delivery of additional Bonds under Article Five or the withdrawal of cash under Article Seven of the First Mortgage, as theretofore amended; and
WHEREAS, none of the Bonds of Series Due 1975, Series Due 1978, Series A, Due 1978, Series Due 1982, Series Due 1984, or Series Due 1993 remain outstanding and the amendments contained in said Eleventh Supplemental Indenture have become effective; and
WHEREAS, none of the Bonds of Series Due 1975, Series Due 1978, Series A, Due 1978, Series Due 1982, Series Due 1984, Series Due 1993, Series Due 1997, Series Due 1998, Series Due 1999, or Series Due 2000 remain outstanding and the amendments contained in said Fifteenth Supplemental Indenture that did not theretofore become effective by virtue of the Sixteenth Supplemental Indenture have become effective; and
WHEREAS, said Forty-Second Supplemental Indenture, which created the 5-1/8% Series Due 2013, provided in its Article Two for certain amendments to the First Mortgage, as theretofore amended, to become effective on the earliest date on which either (i) there shall not be any Bonds outstanding of 6.35% Series Due 2007, Pollution Control Series 1992-A Due 2027, Pollution Control Series 1992-B Due 2027, Pollution Control Series 1992-C Due 2022, Series Due 2026 and Series Due 2024, or (ii) there shall have been executed and delivered a supplemental indenture or indentures embodying said amendment (either alone or with other amendments) consented to by the holders of seventy-five per centum (75%) in aggregate principal amount of the Bonds at the time outstanding of the series enumerated in the foregoing clause (i); and
WHEREAS, none of the Bonds of 6.35% Series Due 2007, Pollution Control Series 1992-A Due 2027, Pollution Control Series 1992-B Due 2027, Pollution Control Series 1992-C Due 2022, Series Due 2026 and Series Due 2024 remain outstanding and the amendments contained in said Forty-Second Supplemental Indenture have become effective; and
WHEREAS, the First Mortgage as amended by the First through the Forty-Ninth Supplemental Indentures is hereinafter called the “First Mortgage as amended”; and
WHEREAS, it is provided in Article Seven of the First Mortgage as amended, among other things, that the Company may issue additional Bonds thereunder upon the deposit with the Trustee of cash equal to the principal amount of such additional Bonds to be issued; it is provided in Article Six of the First Mortgage as amended, among other things, that if Bonds are paid, retired, redeemed, canceled or surrendered to the Trustee for cancellation (except when canceled pursuant to certain provisions of the First Mortgage as 

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amended), the Company may issue additional Bonds thereunder in principal amount equivalent to the principal amount of the Bonds so paid, retired, redeemed, canceled or surrendered to the Trustee for cancellation; it is provided in Article Five of the First Mortgage as amended, among other things, that the Company may issue additional Bonds thereunder upon the basis of property additions in accordance with and subject to the conditions, provisions and limitations set forth in said Article Five; and it is provided in Article Eighteen of the First Mortgage as amended, among other things, that the Company and the Trustee may from time to time enter into one or more indentures supplemental to the First Mortgage as amended for the purposes, among other things which may be therein set forth, to mortgage or pledge additional property under the First Mortgage as amended and to establish the terms and provisions of any series of Bonds other than the 31⁄2% Series Due 1960; and
WHEREAS, the Company, pursuant to resolutions duly adopted by its Board of Directors by unanimous written consent in lieu of a meeting, has determined under and in accordance with the provisions of the First Mortgage as amended and of this Fiftieth Supplemental Indenture to create a new series of Bonds to be known as its First Mortgage Bonds, Variable Rate Series 2016 Due 2022 (hereinafter called the “New Bonds”), in an aggregate principal amount of $455,000,000, the maturity date of which being August 1, 2022; and
WHEREAS, the New Bonds are to be issued by the Company and pledged as collateral security to the Agent (as hereinafter defined), on behalf of and for the benefit of the Lenders (as hereinafter defined), to evidence and secure the obligations of the Company to repay the loan made by the Lenders to the Company pursuant to that certain Credit Agreement, dated as of August 24, 2016 (hereinafter called the “Credit Agreement”), among the Company, each lender from time to time party thereto (hereinafter called the “Lenders”) and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, together with its successors and assigns in such capacity, hereinafter called the “Administrative Agent”) and as collateral agent (in such capacity, together with its successors and assigns in such capacity hereinafter called the “Collateral Agent”, and the Collateral Agent, together with the Administrative Agent, collectively hereinafter called the “Agent”), the proceeds of which will be applied to the refunding of the Bonds of the 1.875% Series Due 2016 outstanding in the principal amount of $445,000,000; and
WHEREAS, the New Bonds, and the Trustee’s certificate to be endorsed thereon, are to be respectively and substantially in the form established hereby and approved by the aforesaid resolutions, which are substantially in the form of Exhibit A hereto; and
WHEREAS, the Board of Directors adopted resolutions that authorized officers of the Company to approve the form, terms and provisions of this Fiftieth Supplemental Indenture (including the form of the New Bonds), and the execution by the Company of this Fiftieth Supplemental Indenture; and
WHEREAS, all things necessary to make the New Bonds hereinafter described, when duly authenticated by the Trustee and issued by the Company, valid, binding and legal obligations of the Company, and to make this Indenture a valid and binding agreement supplemental to the First Mortgage as amended, have been done and performed.
NOW, THEREFORE, THIS INDENTURE WITNESSETH
that, in order further to secure the payment of all the Bonds at any time issued and outstanding under the First Mortgage as amended or this Fiftieth Supplemental Indenture according to their tenor, purport and effect, as well the interest thereon and the principal thereof, and further to secure the performance and observance of all the covenants and conditions therein and in the First Mortgage as amended and herein contained, and further to set forth the terms and conditions upon which the New Bonds are to be issued, 

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secured and held, and for and in consideration of the premises and of the acceptance or purchase of the New Bonds by the holders or registered owners thereof, and of the sum of one dollar, lawful money of the United States of America, to the Company duly paid by the Trustee at or before the ensealing and delivery of this Fiftieth Supplemental Indenture, the receipt whereof is hereby acknowledged, the Company has executed and delivered this Fiftieth Supplemental Indenture, and has granted, bargained, sold, released, conveyed, assigned, transferred, pledged, set over and confirmed, and by these presents does mortgage, grant, bargain, sell, release, convey, assign, transfer, pledge, set over and confirm unto the Trustee, and to its successor or successors in said trust, and to it and its and their assigns forever with covenant of general warranty, and does hereby subject to the lien of the First Mortgage as heretofore and hereby amended all the following described properties (all of which properties are included in and constitute a part of the “mortgaged property” and the “mortgaged and pledged property” as such terms are used and defined in the First Mortgage as heretofore and hereby amended and whenever used in the First Mortgage as heretofore and hereby amended such terms include and refer to such properties), to wit: 
FIRST.
REAL PROPERTY AND INTERESTS IN REAL PROPERTY.
All and singular, all real property and interests in real property acquired by the Company between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and owned by the Company at the latter date, including, without limitation, such real property and improvements to be more fully and specifically described in any document, if any, necessary and appropriate for recordation accompanying the filing of this Fiftieth Supplemental Indenture in the appropriate recorder’s office.
SECOND.
     
 
ELECTRIC GENERATING PLANTS.
All electric generating plants and stations of the Company acquired by it between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and owned by it at the latter date, including all power houses, buildings, structures and works, and the land on which the same are situated, and all other lands and easements, rights-of-way, permits, privileges, towers, poles, wires, machinery, equipment, appliances, appurtenances and supplies forming a part of such plants and stations, or any of them, or occupied, enjoyed or used in connection therewith.
THIRD.
     
 
TRANSMISSION LINES.
All electric overhead and underground transmission lines of the Company acquired by it between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and owned by it at the latter date, including towers, poles, pole lines, conduits, manholes, switching devices, insulators, and other structures, appliances, devices and equipment, and all the property forming a part thereof or appertaining thereto, and all service lines extending therefrom, together with all real property, rights-of-way, easements, permits, privileges, franchises, and rights for or relating to the construction, maintenance or operation thereof, through, over, under or upon any private property or any public way within as well as without the corporate limits of any municipal corporation.

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FOURTH.
     
 
SUBSTATIONS AND SUBSTATION SITES.
All substations and switching stations of the Company acquired by it between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and owned by it at the latter date, for transforming or otherwise regulating electric current at any of its plants, together with all buildings, transformers, wires, cables, insulators, structures, appliances, devices, equipment and all other property, real or personal, forming a part of, or appertaining thereto, or used, occupied or enjoyed in connection with any of such substations and switching stations.
FIFTH.
     
 
ELECTRIC DISTRIBUTION SYSTEMS.
All electric distribution systems of the Company acquired by it between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and owned by it at the latter date, including substations, transformers, switchboards, towers, poles, wires, insulators, conduits, cables, manholes, appliances, devices, equipment and all other property, real or personal, forming a part of or appertaining thereto, or used, occupied or enjoyed in connection with such distribution systems or any of them, together with all rights-of-way, easements, permits, privileges, franchises, and rights in or relating to the construction, maintenance or operation thereof, through, over, under or upon any private property or public ways within as well as without the corporate limits of any municipal corporation.
SIXTH.
     
 
LIQUEFIED PETROLEUM GAS PRODUCTION AND STORAGE FACILITIES.
All additions to liquefied petroleum gas production plants and storage facilities of the Company acquired by it between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and owned by it at the latter date, including all buildings, structures, underground storage caverns, and works, and the land on which the same are situated, and all other lands and easements, rights-of-way, permits, privileges, pipe lines, machinery, equipment, appliances, appurtenances and supplies forming a part of such plants and stations, or any of them, or occupied, enjoyed or used in connection therewith.
SEVENTH.
     
 
GAS DISTRIBUTION SYSTEMS.
All gas distribution systems of the Company acquired or constructed by it between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and owned by it at the latter date, for distribution of gas, including pipes, mains, conduits, meters, appliances, equipment, and all other property, real or personal, forming a part of or appertaining to or used, occupied or enjoyed in connection with such distribution systems, or any of them, together with all rights-of-way, easements, permits, privileges, franchises and rights, for or relating to the construction, maintenance or 

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operation thereof, through, over, under or upon any private property or any public streets or highways, within as well as without the corporate limits of any municipal corporation.
EIGHTH.
     
 
OFFICE AND DEPARTMENTAL BUILDINGS.
All office and departmental buildings of the Company, including the real estate on which such structures stand, acquired by it between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and owned by it at the latter date, appertaining to, used, occupied or enjoyed in connection with the rendition of public utility service.
NINTH.
     
 
TELEPHONE LINES.
All telephone lines of the Company acquired by it between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and owned by it at the latter date, used or available for use in the operation of its properties or otherwise.
TENTH.
     
 
FRANCHISES.
All and singular the franchises, grants, immunities, privileges and rights of the Company granted to or acquired by it between August 1, 2015, the date of the Forty-Ninth Supplemental Indenture, and the date of this Fiftieth Supplemental Indenture, and to which it was entitled at the latter date, including all and singular the franchises, grants, immunities, privileges and rights of the Company granted by all municipalities or political subdivisions, and all right, title and interest therein owned by the Company on the date of the execution of this Fiftieth Supplemental Indenture, and all renewals, extensions and modifications of said franchises, grants, immunities, privileges and rights, or any of them, and of all other franchises, grants, immunities, privileges and rights now subject to the lien of the First Mortgage as amended.
ELEVENTH.
     
 
OTHER REAL ESTATE AND APPURTENANCES.
A.    All other real estate and interests in real estate and all other physical electric power and light, gas and other property owned by the Company at the date of execution of this Fiftieth Supplemental Indenture.
B.    All other real estate and interests in real estate and all other physical electric power and light, gas and other property which the Company may hereafter acquire or construct.
C.    All present and future appurtenances of the real estate and interests in real estate which now are, or hereafter shall be, subject to the lien of the First Mortgage as amended, and all plants, works, buildings, 

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structures, fixtures, improvements, betterments and additions now owned, or hereafter acquired or constructed by the Company, upon any of the real estate which, or interests in which, now are or hereafter shall be subject to the lien of the First Mortgage as amended.
D.    All corporate rights, privileges, immunities and franchises, powers, licenses, easements, leases, contracts and other rights and all renewals and extensions thereof held or acquired for use or used upon, or in connection with or appertaining to, any of the properties which now are or hereafter shall be subject to the lien of the First Mortgage as amended, or which the Company has or may have the right to exercise in respect of any of said properties.
E.    All machinery, tools and equipment now owned or hereafter acquired by the Company, which now or hereafter belong or appertain to or are used in connection with the plants, works, transmission lines, distribution systems, buildings, structures and fixtures which now are or hereafter shall be subject to the lien of the First Mortgage as amended.
Together with all and singular the tenements, hereditaments and appurtenances belonging or in any way appertaining to the aforesaid property or any part thereof, with the reversion and reversions, remainder and remainders, rents, issues, income and profits thereof, and all the estate, right, title, interest and claim whatsoever at law or in equity, which the Company now has or which it may hereafter acquire in and to the aforesaid property and every part and parcel thereof.
It is not intended to include in the lien of the First Mortgage as amended and this grant shall not be deemed to apply (1) to any revenues, earnings, rents, issues, income or profits of the mortgaged property, or any cash (except cash deposited with the Trustee pursuant to any of the provisions of the First Mortgage as heretofore and hereby amended), or any bills, notes or accounts receivable, contracts or choses in action, or any materials or supplies or construction equipment, or any merchandise, equipment or apparatus manufactured or acquired for the purpose of sale or resale in the usual course of business, except in case of the happening of a completed default as defined in Section 1 of Article Twelve of the First Mortgage as heretofore and hereby amended, and following such completed default, in case the Trustee or a receiver or trustee shall enter upon and take possession of the mortgaged property, or (2) in any case, to any cars, trucks or other vehicles of any nature for the transportation of personnel, materials or equipment by any means which may have been acquired after the effective date of the amendment to this Clause made by or pursuant to the provisions of the Eleventh Supplemental Indenture, or to any bonds, notes, evidences of indebtedness, shares of stock or other securities, except such as may be specifically subjected to the lien of the First Mortgage as amended.
TWELFTH.
     
 
PROPERTY HEREAFTER TO BECOME SUBJECT TO THE LIEN OF 
THE FIRST MORTGAGE AS AMENDED.
A.    Any and all property, real, personal and mixed, including franchises, grants, immunities, privileges and rights, which the Company may hereafter acquire or to which it may hereafter become entitled, excepting, however, the following property which is not intended to be subjected to the lien of the First Mortgage:  (1) any revenues, earnings, rents, issues, income or profits of the mortgaged property, or any cash (except cash deposited with the Trustee pursuant to any of the provisions of the First Mortgage as heretofore and hereby amended), or any bills, notes or accounts receivable, contracts or choses in action, or any materials or supplies or construction equipment, or any merchandise, equipment or apparatus 

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manufactured or acquired for the purpose of sale or resale in the usual course of business, except in case of the happening of a completed default as defined in Section 1 of Article Twelve of the First Mortgage as heretofore and hereby amended, and following such completed default, in case the Trustee or a receiver or trustee shall enter upon and take possession of the mortgaged property, or (2) in any case, any cars, trucks or other vehicles of any nature for the transportation of personnel, materials or equipment by any means, or any bonds, notes, evidences of indebtedness, shares of stock or other securities, except such as may be specifically subjected to the lien of the First Mortgage as amended.
B.    Any and all property of every name and nature, including shares of stock, bonds, other securities or obligations and cars, trucks or other vehicles for the transportation of personnel, materials or equipment by any means, which, from time to time after the execution of this Fiftieth Supplemental Indenture, by delivery or by writing of any kind for the purposes hereof, shall have been conveyed, mortgaged, pledged, assigned or transferred by, or by anyone on behalf of, the Company to the Trustee, which is hereby authorized to receive any property at any and all times, as and for additional security, and also, when and as provided in the First Mortgage as amended as and for substituted security, for the payment of the Bonds to be issued under the First Mortgage as amended, and to hold and apply any and all such property subject to the terms hereof and of the First Mortgage as amended.
TO HAVE AND TO HOLD all such properties, real, personal and mixed, mortgaged, pledged or conveyed by the Company as aforesaid, or intended so to be, unto the Trustee and its successors and assigns forever.
SUBJECT, HOWEVER, as to property hereby conveyed, to liens for taxes, assessments and other charges levied or to be levied by the State of Ohio or Commonwealth of Kentucky, as applicable, and any of the subdivisions thereof for the year 2015 and thereafter and, as to any property hereafter acquired by the Company and which may become subject to the lien of the First Mortgage as amended, to any lien or charge thereon existing at the time of the acquisition thereof by the Company;
IN TRUST NEVERTHELESS, upon and subject to the terms, conditions and stipulations hereinafter and in the First Mortgage as amended set forth, for the equal and proportionate benefit and security of the holders from time to time of the Bonds and interest coupons issued and to be issued under the First Mortgage as amended and this and other indentures supplemental thereto, without preference, priority or distinction as to lien or otherwise of any of the Bonds and coupons over any others by reason of priority in time of issue, sale or negotiation thereof or otherwise howsoever, and for the uses and purposes and upon and subject to the terms, conditions, provisions and agreements in the Bonds and hereinafter and in the First Mortgage as amended expressed and declared.
ARTICLE 1.

BONDS OF THE VARIABLE RATE SERIES 2016 DUE 2022 AND ISSUE THEREOF.
SECTION 1.Series and Form of New Bonds.  There shall be a series of Bonds designated “Variable Rate Series 2016 Due 2022”, each of which shall bear the descriptive title First Mortgage Bond.  The aggregate principal amount of the New Bonds which may be issued and outstanding under the First Mortgage as amended and this Fiftieth Supplemental Indenture shall be $445,000,000.00.
SECTION 2.Issue of New Bonds.  Upon the execution and delivery of this Fiftieth Supplemental Indenture and upon delivery of $445,000,000.00 aggregate principal amount of the New Bonds, executed by the Company, and upon compliance by the Company with the provisions of Article Six of the First Mortgage as amended, the Trustee shall, without awaiting the filing or recording of this Fiftieth Supplemental 

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Indenture, authenticate said New Bonds and deliver said New Bonds as provided in said Article Six.  The New Bonds are to be issued to and registered in the name of the Collateral Agent under the Credit Agreement to evidence and secure the obligations of the Company under the Credit Agreement.
SECTION 3.Dates, Interest, Etc. of New Bonds.  The New Bonds shall be dated as provided in Section 3 of Article Two of the First Mortgage as amended; shall mature on August 24, 2022; and shall bear interest from August 24, 2016 as provided in said Section 3 of Article Two at such rate or rates per annum as shall cause the amount of interest payable on each Interest Payment Date (as hereinafter defined) on the New Bonds to equal the amount of interest payable on such Interest Payment Date on the corresponding loans under the Credit Agreement (hereinafter called the “Loans”), such interest to be payable on the same date as interest is payable on said Loans (each such date relating to the New Bonds herein called an “Interest Payment Date”), until the maturity of the New Bonds, or, in the case of any such New Bonds duly called for redemption, until the redemption date, or in the case of any default by the Company in the payment of the principal due on any such New Bonds, until the Company’s obligation with respect to the payment of the principal shall be discharged as provided in the First Mortgage as amended.  The amount of interest payable on each Interest Payment Date shall be computed on the same basis as the amount of interest is computed on the corresponding Loan.
The Trustee shall be entitled to request, receive and conclusively rely upon the certification of the Company, in an officer’s certificate of the interest rate of, Interest Payment Date of and basis on which interest is computed for, the Loans, from time to time as necessary to enable the Trustee to determine for the New Bonds their corresponding interest rate, Interest Payment Date and basis on which interest shall be computed.
The interest payable on the New Bonds on any Interest Payment Date shall be paid to the holders in whose names such New Bonds are registered, except that if the Company shall default in the payment of any installment of interest on any New Bonds, such interest in default shall be paid to the holders in whose names the New Bonds are registered at the close of business on a date established for the payment of such defaulted interest by the Company in any lawful manner.  The New Bonds shall be payable as to both principal and interest in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts, at the office or agency of the Company in the Borough of Manhattan, The City of New York.
SECTION 4.Denominations and Exchangeability of New Bonds; Temporary Bonds May Be Authenticated and Delivered.  The New Bonds shall be issued in denominations of $1,000 and any integral multiple of $1,000. 
Whenever any New Bond or New Bonds shall be surrendered at the office or agency of the Company in said Borough of Manhattan for exchange for a New Bond  or New Bonds of other authorized denomination or denominations, the Company shall execute, and the Trustee shall authenticate and deliver, upon cancellation of the New Bond or New Bonds so surrendered, a New Bond or New Bonds of such other authorized denomination or denominations of like aggregate principal amount as the holder making the exchange shall have requested and shall be entitled to receive.  On presentation of any New Bond which is to be redeemed pursuant to the provisions of this Fiftieth Supplemental Indenture in part only, the Company shall execute, and the Trustee shall authenticate and deliver, a New Bond or New Bonds in principal amount equal to the unredeemed portion of the New Bonds so presented.

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The Company shall not be required to (a) register a transfer of, or exchange, any New Bond during a period of fifteen (15) days next preceding any selection of New Bonds to be redeemed or (b) register a transfer of, or exchange, any New Bond which shall have been selected for redemption in whole or in part.
A service charge will not be made for any registration of transfer or exchange of New Bonds, but the Company may require payment of a sum sufficient to cover any stamp tax or other governmental charge payable in connection therewith.
Until definitive New Bonds  shall be ready for delivery, the Company may execute and, upon request of the Company, the Trustee shall authenticate and deliver, in lieu of such definitive New Bonds but subject to the same provisions, limitations and conditions except as to the denominations thereof, temporary printed or lithographed New Bonds as provided in Section 8 of this Article One.  Such temporary New Bonds  shall be exchangeable for definitive New Bonds, when ready for delivery, in the manner provided in the First Mortgage as amended, and shall in all other respects be subject to and entitled to the benefits of the terms and provisions and lien of this Fiftieth Supplemental Indenture, and the terms and provisions and lien of the First Mortgage as amended as therein provided.
SECTION 5.Mandatory Redemption or Repurchase.  The New Bonds shall be subject to mandatory redemption by the Company prior to maturity at any time in whole or in part at a redemption price of 100% of the principal amount to be redeemed, plus accrued and unpaid interest, if any, to the redemption date, upon receipt by the Trustee of notice from the Company to the effect that (a) the Company is required to mandatorily prepay or repay the Loans in whole or in part, as the case may be, as provided in Section 2.07 of the Credit Agreement and (b) an equivalent principal amount of such Loans are being prepaid or repaid.  Said notice shall specify the redemption date of such New Bonds (which redemption date shall be the same date as the prepayment or repayment date of the corresponding Loan).  Any such redemption shall be made upon the notice and in the manner provided in this Article One, subject to the provisions of the First Mortgage as amended.
SECTION 6.[Reserved].  
SECTION 7.Optional Redemption.  The New Bonds shall also be subject to redemption prior to maturity, at the option of the Company, in whole or in part, at any time, at a redemption price, including premium, if any, plus accrued and unpaid interest, if any, to the redemption date, as shall be payable on the corresponding Loans to be prepaid or repaid concurrently therewith.
Prior to any such redemption, the Trustee shall have received an officers’ certificate to the effect that (a) the Company has given notice to the Agent that the Company is exercising its option to voluntarily prepay or repay in whole or in part, as the case may be, as provided in Section 2.06 of the Credit Agreement and (b) an equivalent principal amount of Loans are being concurrently prepaid or repaid.  Such officers’ certificate shall specify the principal amount of New Bonds to be redeemed and the redemption price plus accrued interest, including premium, if any, thereof, shall have attached to it a copy of said notice to the Agent and shall specify the redemption date of such New Bonds (which redemption date shall be not less than 3 days (unless a shorter time period shall be acceptable to the Trustee) after the date of such notice and shall be the same date as the prepayment or repayment date specified in said attached notice to the Agent of the Loans being concurrently prepaid or repaid).  Any such redemption shall be made upon the notice, which may be conditional as provided in Section 8 of this Article One, and in the manner provided in this Article One, subject to the provisions of the First Mortgage as amended.

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SECTION 8.Notice of Redemption.  Subject to the provisions of the First Mortgage as amended, written notice of redemption of the New Bonds pursuant to any of Sections 5 or 7 of this Article One shall be given by the Company by mailing, first class postage prepaid, or delivering by hand to the registered owner of such New Bonds to be redeemed a notice of such redemption at its last address as it shall appear upon the books of the Company for the registration and transfer of such New Bonds.  Any notice of redemption pursuant to said Sections 5 or 7 shall be mailed or delivered by hand as least 30 days and not earlier than 60 days before the redemption date; provided, however, that the registered owner or owners of all New Bonds may hereby consent(s) to a shorter notice period equal to the corresponding notice period for prepayment or repayment of the Loans under the Credit Agreement, and such shorter notice period shall be binding upon the Company and such registered owners and their transferees.  In the case of any notice of redemption of New Bonds pursuant to said Section  7, such notice shall state that such redemption is conditional to the same extent and with the same effect, if any, as the notice of prepayment of Loans being concurrently prepaid.
SECTION 9.[Reserved].
SECTION 10.New Bonds Deemed Paid in Additional Circumstances.  In the event and to the extent the principal of, or premium, if any, or interest on any Loans shall be paid, whether at maturity, upon redemption, prepayment, acceleration or otherwise or shall otherwise be deemed to be paid, an equal amount of principal or premium, if any, or interest, as the case may be, payable with respect to an aggregate principal amount of corresponding New Bonds equal to an aggregate principal amount of such Loans shall be deemed to have been paid.
SECTION 11.Surrender of New Bonds in Certain Circumstances. All New Bonds deemed to have been paid in full as provided in Section 10 of this Article One, and the Credit Agreement (including with limitation, any commitments thereunder) shall have been terminated, shall be surrendered to the Trustee for cancellation and the Trustee shall forthwith cancel the same.  
SECTION 12.Satisfaction and Discharge. The Trustee may conclusively presume that the obligation of the Company to pay the principal of, premium, if any, and interest on the New Bonds, as the case may be, on each date when due shall have been fully satisfied and discharged on each date when due unless and until a responsible officer of the Trustee within the corporate trust group administering the Indenture shall have received a written notice from the Collateral Agent, signed by a person certifying that he or she is an authorized signatory of the Collateral Agent, stating that the payment of principal of or interest on the New Bonds has not been fully paid when due and specifying the amount of funds required to make such payment.
SECTION 13.Restrictions on Transfer. The New Bonds shall be issued to and registered in the name of the Collateral Agent and, unless an Event of Default (as defined in the Credit Agreement) has occurred and is continuing, shall not be transferable by the Collateral Agent, except to (i) a successor Collateral Agent appointed pursuant to the terms of Section 9.06 of the Credit Agreement or (ii) the Company; provided that if an Event of Default (as defined in the Credit Agreement) has occurred and is continuing, the Collateral Agent shall have the right to transfer, assign or otherwise dispose of the New Bonds in accordance with the Credit Agreement and the Loan Documents (as defined in the Credit Agreement). The Company hereby instructs the Trustee to comply with such limited transfers requested by a holder (other than the Company) of the New Bonds. 
SECTION 14.Application of Article Ten of First Mortgage as Amended.  Except as in this Fiftieth Supplemental Indenture or otherwise provided with respect to any matter or question, the provisions of 

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Article Ten of the First Mortgage as amended shall be applicable in the case of the redemption of all or any part of the New Bonds at any time outstanding.  
SECTION 15.Form of New Bonds.  The New Bond shall be in fully registered form only.  The form of the New Bonds, and of the Trustee’s certificate of authentication thereon, shall be substantially as set forth in Exhibit A.
SECTION 16.Treatment under UCC Article 8.  The New Bonds are “Securities” for purposes of, and governed by, Article 8 of the Uniform Commercial Code, as in effect in the State of New York on the date hereof.
SECTION 17.Certain Term. The term “officers’ certificate” as used in this Article One shall mean a certificate signed by the President or a Vice President and any other Vice President, the Treasurer, Assistant Treasurer, the Secretary or Assistant Secretary or any other officer of the Company.
SECTION 18.Transfers.  Before any transfer of this Bond by the registered holder or his or its legal representative will be recognized or given effect by the Trustee, the registered holder shall note the amounts of all reductions in the stated principal amount of this Bond, and shall notify the Trustee of the name and address of the transferee and, unless an Event of Default shall have occurred and be continuing under the Credit Agreement, shall afford the Trustee the opportunity of verifying the notation as to such reductions. By acceptance hereof the holder of this Bond and each transferee shall be deemed to have agreed to provide reasonable indemnity to the Trustee with respect to, and hold harmless the Trustee against, all losses, claims, damages or liability arising out of any failure on part of the holder or of any such transferee to comply with the requirements of the preceding sentence.

ARTICLE 2. 
 
[RESERVED].
ARTICLE 3.

[RESERVED].

ARTICLE 4. 
 
AMENDMENTS TO FIRST MORTGAGE AS AMENDED 
 to become effective at a later date.
SECTION 1.    Amendments to First Mortgage.  The Company, and the holders of any New Bonds by their acceptance and holding thereof, hereby consent and agree that each of the amendments provided for by the following Sections 2, 3, 4, 5, 6 and 7 of this Article Four shall become effective on the earliest date on which either (a) there shall not be any Bonds outstanding of (i) 4.80% Pollution Control Series 2005-A Due 2034, (ii) 4.80% Pollution Control Series 2005-B Due 2034, (iii) 4.70% Pollution Control Series 2005-C Due 2028, (iv) 4.80% Pollution Control Series 2006 Due 2036, (v)Variable Rate Pollution Control Series 2008-A Due 2040, (vi) Variable Rate Pollution Control Series 2008-B Due 2040, and (vii) 1.875% Series Due 2016; or (b) there shall have been executed and delivered a supplemental indenture or indentures embodying said amendments (either alone or with other amendments) consented 

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to by the holders of at least a majority in aggregate principal amount of the Bonds at the time outstanding (including in determining such majority the amount of the New Bonds embodied herein), all in conformity with the provisions of Article Eighteen of the First Mortgage as amended.
SECTION 2.    Amendments to Article One of First Mortgage.  Effective on a date fixed as provided in Section 1 of this Article Four, Article One of the First Mortgage as amended, shall be amended by restating Section 7 in its entirety to read as follows:
“The term “net earnings certificate”, shall mean a certificate signed by the Chairman of the Board or Chief Executive Officer or President or a Vice President of the Company and an accountant, who unless, required to be independent, may be an officer or employee of the Company, stating:
(A)       the adjusted net earnings of the Company for a period of twelve (12) consecutive calendar months within the eighteen (18) calendar months immediately preceding the first day of the month in which the application for the authentication and delivery under this Indenture of Bonds then applied for is made, being and specifying for the Company and its subsidiaries on a consolidated basis:
(1)       the net income (or loss), without deduction for minority interests, of the Company and its subsidiaries for that period determined in conformity with generally accepted accounting principles in the United States;
(2)        to the extent deducted in calculating such net income (loss) specified in clause (1) of this Section the sum of (a) all interest, premium payments, debt discount, fees, charges and related expenses of the Company and its subsidiaries in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with generally accepted accounting principles in the United States, and (b) the portion of rent expense of the Company and its subsidiaries with respect to such period under capital leases that is treated as interest in accordance with generally accepted accounting principles in the United States;
(3)        to the extent deducted in calculating such net income (loss) specified in clause (1) of this Section the provision for Federal, state, local and foreign income taxes payable by the Company and its subsidiaries for such period;
(4)    to the extent deducted in calculating such net income (loss) specified in clause (1) of this Section depreciation and amortization expense for such period; 
(5)    to the extent deducted in calculating such net income (loss) specified in clause (1) of this Section other non-recurring expenses of the Company and its subsidiaries reducing such net income (loss) specified in clause (1) of this Section (a) which do not represent a cash item in such period or (b) which are cash items in such period that were incurred as a result of (i) the early termination of Company’s Capital Trust II indebtedness, (ii) termination of existing swap contracts (it being understood that cash charges described in this clause (ii) will not exceed $50,000,000 in the aggregate) or (iii) normal and customary out-of-pocket third party costs, expenses and fees incurred directly in connection with the refinancing of any existing indebtedness;

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 (6)    to the extent deducted in calculating such net income (loss) specified in clause (1) of this Section out-of-pocket third party costs and expenses incurred directly in connection with the implementation, negotiation, documentation and closing of the Separation;
(7)    to the extent deducted in calculating such net income (loss) specified in clause (1) of this Section all other non-cash items reducing net income (loss) specified in clause (1) of this Section for such period;
(8)    the sum of the amounts required to be stated in such certificate by clauses (1), (2), (3), (4), (5), (6) and (7) of this Section;
(9)        to the extent included in calculating such net income (loss) specified in clause (1) of this Section Federal, state, local and foreign income tax credits of the Company and its Subsidiaries for such period;
(10)    to the extent included in calculating such net income (loss) specified in clause (1) of this Section all non-cash items increasing net income (loss) specified in clause (1) of this Section such period;
(11)        the sum of the amounts required to be stated in such certificate by clauses (9) and (10) of this Section; and
(12)        the adjusted net earnings of the Company for such period of twelve (12) consecutive calendar months (being the amount remaining after reducing the amount required to be stated in such certificate by clause (8) of this Section by the amount required to be stated therein by clause (11) of this Section);
(B)       the annual interest requirements, being the interest requirements, if any, for twelve (12) months upon:
(i)         all Bonds outstanding hereunder at the date of such certificate, except any for the payment of which the Bonds applied for are to be issued; provided that, if any such series of outstanding Bonds bears interest at a variable rate, then the interest on such series of Bonds shall be computed at the average annual rate in effect for such series during the period of twelve (12) consecutive calendar months (or any portion thereof in which Bonds of such series are outstanding) being used for the calculation of adjusted net earnings; and if such outstanding Bonds have been issued after the end of such twelve (12) consecutive calendar months, then computed at the initial rate upon issuance;
(ii)        all Bonds then applied for in pending applications, including the application in connection with which such certificate is made, computed at the initial rate upon issuance;
(iii)       the principal amount of all other indebtedness (except indebtedness for the payment of which the Bonds applied for are to be issued and indebtedness for the purchase, payment or redemption of which moneys in the necessary amount shall have been deposited with or be held by the Trustee or the trustee or other holder of a lien prior to the lien of this Indenture upon property subject to the lien of this Indenture with irrevocable direction so to apply the same; provided that, in the case of redemption, the notice required therefor shall have been given or have been provided for to the satisfaction of the Trustee), outstanding 

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in the hands of the public on the date of such certificate and secured by a lien prior to the lien of this Indenture upon property subject to the lien of this Indenture, if said indebtedness has been assumed by the Company or if the Company customarily pays the interest upon the principal thereof.
If any of the property of the Company owned by it at the time of the making of any net earnings certificate shall have been acquired during or after any period for which adjusted net earnings of the Company are to be computed, the adjusted net earnings of such property (computed in the manner in this Section provided for the computation of the adjusted net earnings of the Company) during such period or such part of such period as shall have preceded the acquisition thereof, to the extent that the same have not otherwise been included and unless such property shall have been acquired in exchange or substitution for property the earnings of which have been included, may, at the option of the Company, be included in the adjusted net earnings of the Company for all purposes of this Indenture, and shall be included if such property has been operated as a separate unit or if the earnings therefrom are readily ascertainable.
In any case where a net earnings certificate is required as a condition precedent to the authentication and delivery of Bonds, such certificate shall also be made and signed by an independent public accountant, if the aggregate principal amount of Bonds then applied for plus the aggregate principal amount of Bonds authenticated and delivered hereunder since the commencement of the then current calendar year (other than those with respect to which a net earnings certificate is not required, or with respect to which a net earnings certificate made and signed by an independent public accountant has previously been furnished to the Trustee) is ten per centum (10%) or more of the aggregate principal amount of the Bonds at the time outstanding hereunder; but no net earnings certificate need be made and signed by any person other than the Chairman of the Board or Chief Executive Officer or President or a Vice President and an accountant, as to dates or periods not covered by annual reports required to be filed by the Company, in the case of conditions precedent which depend upon a state of facts as of a date or dates or for a period or periods different from that required to be covered by such annual reports.
Each such certificate shall include the statements required by Section 1 of Article Twenty hereof.
Unless otherwise specifically provided with respect to a series of Bonds, if interest on any Bonds outstanding hereunder is payable solely in the coin or currency of a foreign nation, then the annual interest requirements for such Bonds shall be based upon the estimated value (on a date within 10 days prior to the date of the application for the authentication and delivery under this Indenture of Bonds in connection with which such net earnings certificate is delivered) of such foreign coin or currency in The City of New York, New York, in the written opinion of an independent appraiser or other expert delivered to the Trustee.”
SECTION 3.    Amendments to Article One of First Mortgage.  Effective on a date fixed as provided in Section 1 of this Article Four, Article One of the First Mortgage as amended, shall be further amended by adding a new Section 8 thereto, as follows:
“Section 8.    The term “Generation Assets” shall mean the Company’s assets and operations which form part of the Company’s generation business and any assets or operations necessary or incidental to the Company’s generation business.”
“The term “Separation” shall mean the separation of the Company’s Generation Assets, as defined in Section 8 of Article One hereof, from its transmission and distribution assets, including the restructuring of the Company’s operations in connection therewith, all in accordance and compliance with an order of the Public Utilities Commission of Ohio and any rules and regulations thereunder and the laws of the State of Ohio.”

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SECTION 4.    Amendments to Article Six of First Mortgage.  Effective on a date fixed as provided in Section 1 of this Article Four, Article Six of the First Mortgage as amended shall be amended in its entirety to read as follows:
ARTICLE SIX 
 
ISSUANCE OF BONDS UPON RETIREMENT OF BONDS  
PREVIOUSLY OUTSTANDING HEREUNDER.
Whenever Bonds authenticated and delivered hereunder (i) are paid, retired, redeemed, canceled or surrendered to the Trustee for cancelation (except when canceled pursuant to the provisions of Section 3 of Article Eleven to obtain the release of funded property; or any sinking fund provisions contained in any indenture supplemental hereto, so long as any Bonds of the series to which such sinking fund provisions relate shall be outstanding; or canceled through use by the Trustee of funded cash; or canceled pursuant to the provisions of Section 5 of Article Eight of this Indenture), or (ii) for the purchase, payment or redemption of which money in the necessary amount shall have been deposited with the Trustee (including in any such case described in clause (i) or (ii) with the proceeds of new Bonds (“Refinancing Bonds”) authenticated and delivered pursuant to this Article Six for the purpose of refinancing, replacing, defeasing or refunding Bonds concurrently with the issuance of such Refinancing Bonds), upon the request of the Company evidenced by a resolution such as is described in subdivision (1) of Section 6 of Article Five, and upon receipt of a Treasurer's certificate and an opinion of counsel such as are described in subdivisions (2) and (4) respectively of Section 1 of Article Seven and of a further Treasurer's certificate, as defined in Section 3 of Article One, stating (a) the aggregate principal amount of Bonds authenticated and delivered hereunder and made the basis of such request which have been (or will be concurrently with the receipt of proceeds of Refinancing Bonds) paid, retired, redeemed, canceled or surrendered to the Trustee for cancellation, and (b) the aggregate principal amount of Bonds for the purchase, payment or redemption of which money in the necessary amount shall have been deposited with the Trustee (or will be concurrently with the receipt of proceeds of Refinancing Bonds), and that such Bonds have not been canceled pursuant to the provisions of Section 13 of Article Two, or Section 3 of Article Eleven to obtain the release of funded property, or canceled through the use by the Trustee of funded cash, or canceled pursuant to the provisions of Section 5 of Article Eight of this Indenture, or, if any Bonds of the series to which such sinking fund provisions relate shall then be outstanding, canceled pursuant to any sinking fund provisions of any indenture supplemental hereto, the Trustee shall authenticate and deliver additional Bonds of the same or another series in principal amount equivalent to the principal amount of the Bonds so paid, retired, redeemed, canceled or surrendered to the Trustee for cancellation or for the purchase, payment or redemption of which money in the necessary amount shall have been so deposited with the Trustee (together with all accrued and unpaid interest on such Bonds and the amount of any premium necessary to accomplish such refinancing if such Bonds are paid, retired, redeemed, cancelled or surrendered to the Trustee for cancellation on the basis of and with the proceeds of Refinancing Bonds); provided, however, that, unless the Company shall deliver to the Trustee a net earnings certificate such as is described in subdivision (6) of Section 6 of Article Five, no Bonds shall be authenticated or delivered under this Article for Bonds so paid, retired, redeemed, canceled or surrendered if such Bonds shall not have been at some time held by the public.”
SECTION 5.    Amendments to Section 3 of Article Eleven of First Mortgage.  Effective on a date fixed as provided in Section 1 of this Article Four, Section 3 of Article Eleven of the First Mortgage as amended shall be amended as follows:
(a)    the portion of the first sentence thereof appearing before subdivision (1) of Section 3 shall be deleted, and the following shall be inserted:

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“So long as the Company is not in default under any of the provisions of this Indenture, the Company may obtain the release of any of the mortgaged and pledged property, including, without limiting the generality of the foregoing, any one or more of the Company's heating, gas or water properties substantially as an entirety (provided, however, that the electric property of the Company shall not in any event be released substantially as an entirety (other than the Generation Assets, as defined in Section 8 of Article One hereof, pursuant to the Separation, as defined in Section 8 of Article One hereof) and, further, that prior lien bonds deposited with the Trustee shall not be released except as provided in Article Nine hereof), and the Trustee shall release the same from the lien hereof upon the application of the Company and receipt by the Trustee of”;
(b)     subdivision (2) of Section 3 shall be amended to add a new proviso at the end thereof to read as follows:
“provided that, anything contained in this subdivision (2) to the contrary     notwithstanding, in connection with an application of the Company for the release of the Generation Assets, as defined in Section 8 of Article One hereof, from the lien hereof pursuant to the Separation, as defined in Section 8 of Article One hereof, the Trustee need not receive so much and such a part of any one or more of the statements otherwise required hereunder to be included in such certificate, and such certificate need not be made by an independent engineer, if and to the extent that the Company determines, in good faith based on advice of counsel, that under the terms of that section and/or any interpretation or guidance as to the meaning thereof of the Securities and Exchange Commission and its staff, including any one of more “no action” letters or exemptive orders (whether issued to the Company or any other Person), all or any portion of Section 314(d) of the Trust Indenture Act of 1939 as then in effect as might otherwise have been applicable to any one or more of the statements otherwise required hereunder to be included in such certificate shall not be applicable to such certificate, and upon receipt by the Trustee of an opinion of counsel to such effect;”
(c)    subdivision (3) of Section (3) shall be amended to add a new proviso at the end thereof to read as follows:
“provided that this subdivision (3) shall not apply in the case of the release of the Generation Assets, as defined in Section 8 of Article One hereof, from the lien hereof pursuant to the Separation, as defined in Section 8 of Article One hereof, if (i) the amendments  to Section 3 of Article Eleven of this Indenture provided for in Article Four of the Forty-Eighth Supplemental Indenture, dated as of August 1, 2015, to this Indenture become effective as provided for in Section 1(a) of said Article Four or (ii) the amendments  to Section 3 of Article Eleven of this Indenture  provided for in Article Four of the Forty-Eighth Supplemental Indenture, dated as of August 1, 2015, to this Indenture become effective as provided in Section 1(b) of Article Four of the Forty-Eighth Supplemental Indenture, dated as of August 1, 2015, and the Trustee receives in connection with the Company’s application for such release an engineer’s certificate  made by an independent engineer and dated not more than sixty (60) days prior to the date of making of such application and stating that the fair value, in the opinion of the  signer, of the property subject to the lien hereof after giving effect to the release of the lien hereof on the Generation Assets, as defined in Section 8 of Article One hereof, is not less than 110% of the principal amount of the Bonds outstanding at the time of such application, and a net earnings certificate such  as is described in subdivision (6) of Section 6 of Article Five, in each case, determined on a pro forma basis giving effect to the Separation, as defined in Section 8 of Article One hereof); provided, 

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further, that in the case of clause (i) or clause (ii), as applicable, no default under any of the provisions of this Indenture and no completed default as defined in Section 1 of Article Twelve hereof shall exist or be continuing before or after giving effect to such release.”  

SECTION 6.    Amendments to Section 1 of Article Fifteen of First Mortgage.  Effective on a date fixed as provided in Section 1 of this Article Four, Section 1 of Article Fifteen of the First Mortgage as amended shall be amended to add the following parenthetical at the end of the first paragraph thereof:
“(provided, however, that, in connection with the Separation, as defined in Section 8 of Article One hereof, the Company may convey or transfer all of the Generation Assets, as defined in Section 8 of Article One hereof, without the transferee being required to expressly assume in writing the due and punctual payment of the principal and interest of all the Bonds according to their tenor and the due and punctual performance and observance of all the covenants and conditions of the Indenture, so long as no default under any of the provisions of this Indenture and no completed defaults as defined in Section 1 of Article Twelve hereof shall exist or be continuing before or after giving effect to such conveyance or transfer and the liens hereof on such Generation Assets are released in accordance with Article Eleven hereof)”.
SECTION 7.    Effectuating Provisions; Required Consent.  Any supplemental indentures may contain such other provisions as may be necessary or appropriate to carry into effect the purposes of the amendments provided for by this Article Four or as may be otherwise appropriate and permissible under the provisions of Article Eighteen of the First Mortgage as amended to accomplish the purposes of said amendments.  To the extent permitted by Article Eighteen of the First Mortgage as amended, any supplemental indenture may terminate or modify specified obligations of the Company to the holders of the Bonds of a particular series and such amendment will only require the consent by holders of at least a majority in aggregate principal amount of the Bonds outstanding of said series.  Said amendments may effect the purposes herein contemplated either by adding provisions to, or eliminating provisions from, the First Mortgage as amended, or by both adding and eliminating provisions, or may accomplish said purposes in any other appropriate manner.
No further consent of the holders of New Bonds shall be required to effect any of the amendments provided for in, or permitted by, this Article Four.
ARTICLE FIVE. 
 
COVENANTS OF THE COMPANY.
SECTION 1.    Confirmation of Covenants by the Company in First Mortgage.  All covenants and agreements by the Company in the First Mortgage as heretofore and hereby amended are hereby confirmed.
SECTION 2.    Covenant of the Company and Legal Opinion as to Recording.  Promptly after the execution and delivery of this Fiftieth Supplemental Indenture, the Company will take such action with respect to the recording, filing, re-recording and refiling of the First Mortgage as amended and this Fiftieth Supplemental Indenture as may be necessary to make effective the lien intended to be created hereby, and will furnish to the Trustee an opinion of counsel selected by the Company and satisfactory to the Trustee (who may be of counsel to the Company) either (a) stating that in the opinion of such counsel such action has been taken with respect to the recording, filing, re-recording and refiling of the First 

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Mortgage as amended and this Fiftieth Supplemental Indenture as to make effective the lien intended to be created thereby, and reciting the details of such action, or (b) stating that in the opinion of such counsel no such action is necessary to make such lien effective.
ARTICLE SIX. 
 
MISCELLANEOUS.
SECTION 3.    Authentication and Delivery of New Bonds in Advance of the Recording of Fiftieth Supplemental Indenture.  The New Bonds may be authenticated and delivered by the Trustee and issued by the Company in advance of the recording or filing of this Fiftieth Supplemental Indenture.
SECTION 4.    Fiftieth Supplemental Indenture to Form Part of First Mortgage.  The provisions of this Fiftieth Supplemental Indenture shall become effective immediately upon the execution and delivery hereof, except that the provisions of Article Four of this Fiftieth Supplemental Indenture modifying and amending the First Mortgage as amended shall become effective on the date or dates fixed as provided in said Article Four. From and after the initial issue of the New Bonds, this Fiftieth Supplemental Indenture shall form a part of the First Mortgage and all the terms and conditions herein contained shall be deemed to be part of the terms of the First Mortgage, as fully and with the same effect as if all the terms and provisions of this Fiftieth Supplemental Indenture, including the provisions which determine the dates on which the amendments provided for in Article Four of this Fiftieth Supplemental Indenture shall become effective, had been set forth in the First Mortgage as originally executed.  Except as modified or amended by this Fiftieth Supplemental Indenture, the First Mortgage as amended shall remain and continue in full force and effect in accordance with the terms and provisions thereof, and all the covenants, conditions, terms and provisions of the First Mortgage, as heretofore modified and amended and as further modified and amended by this Fiftieth Supplemental Indenture, shall be applicable with respect to the New Bonds, except insofar as such covenants, conditions, terms and provisions are limited and applicable only to the Bonds of another or other series, or are expressed to continue only so long as Bonds of another or other series are outstanding, and all the covenants, conditions, terms and provisions of the First Mortgage as amended with respect to the Trustee shall remain in full force and effect and be applicable to the Trustee under this Fiftieth Supplemental Indenture in the same manner as though set out herein at length.  All representations and recitals contained in this Fiftieth Supplemental Indenture and in the New Bonds (save only the Trustee’s certificates upon said New Bonds) are made by and on behalf of the Company, and the Trustee is in no way responsible therefor or for any statement therein contained.
SECTION 5.    Definitions in First Mortgage Shall Apply to Fiftieth Supplemental Indenture.  The terms defined in Article One of the First Mortgage as heretofore and hereby amended, when used in this Fiftieth Supplemental Indenture, shall, respectively, have the meanings set forth in said Article One.
SECTION 6.    Execution in Counterparts.  This Fiftieth Supplemental Indenture may be simultaneously executed in several counterparts and each counterpart shall be an original instrument.

20
    
    

IN WITNESS WHEREOF, THE DAYTON POWER AND LIGHT COMPANY has caused this instrument to be signed on its behalf by its President or a Vice President and its corporate seal to be hereunto affixed and attested by its Secretary or an Assistant Secretary, in _____________________, and THE BANK OF NEW YORK MELLON has caused this instrument to be signed on its behalf by a Vice President or an Assistant Vice President and its corporate seal to be hereunto affixed and attested by a Vice President, Assistant Vice President or an Assistant Treasurer, in The City of New York, New York, as of the day and year first above written.

THE DAYTON POWER AND LIGHT COMPANY

By
Craig L. Jackson, Vice President and
Chief Financial Officer

[SEAL]

STATE OF    )    ss.: COUNTY OF    )

On this
 
day of ___, 2016, personally appeared before me, a Notary Public within and

for said County in the State aforesaid, Craig L. Jackson, to me known and known to me to be the Vice President and Chief Financial Officer of THE DAYTON POWER AND LIGHT COMPANY, an Ohio corporation and one of the corporations which executed the foregoing instrument, who acknowledged that he did sign and seal said instrument as such Vice President and Chief Financial Officer for and on behalf of said corporation and that the same is his free act and deed as such Vice President and Chief Financial Officer, and the free and corporate act and deed of said corporation; and said Craig L. Jackson, being by me duly sworn, did depose and say: that he resides in Montgomery County, Ohio; that he is the Vice President and Chief Financial Officer of THE DAYTON POWER AND LIGHT COMPANY, an Ohio corporation and one of the corporations described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that he signed his name thereto by like order.

IN WITNESS WHEREOF I have hereunto set my hand and official seal.

    

Attest:

Judi L. Sobecki, Vice President, General
Counsel and Secretary

Signed and acknowledged in our presence by
The Dayton Power and Light Company.

STATE OF     )    ss.: COUNTY OF    )

On this
 
day of ___, 2016, personally appeared before me, a Notary Public within and

for said County in the State aforesaid, Judi L. Sobecki, to me known and known to me to be the Vice President, General Counsel and Secretary of THE DAYTON POWER AND LIGHT COMPANY, an Ohio corporation and one of the corporations which executed the foregoing instrument, who acknowledged that she did sign and seal said instrument as such Vice President, General Counsel and Secretary for and on behalf of said corporation and that the same is her free act and deed as such Vice President, General Counsel and Secretary, and the free and corporate act and deed of said corporation.

IN WITNESS WHEREOF I have hereunto set my hand and official seal.

    

THE BANK OF NEW YORK MELLON, as Trustee

By
[●]
Vice President

[SEAL]

Attest:

[●]
Vice President

Signed and acknowledged in our presence by
The Bank of New York Mellon.

    

STATE OF NEW YORK,    )    ss.: COUNTY OF NEW YORK,    )

On this    day of ___, 2016, personally appeared before me, a Notary Public within and for said County in the State aforesaid, [●] and [●], to me known and known to me to be, respectively, a Vice President and a Vice President of THE BANK OF NEW YORK MELLON, one of the corporations which executed the foregoing instrument, who severally acknowledged that they did sign and seal said instrument as such Vice President and Vice President for and on behalf of said corporation and that the same is their free act and deed as such Vice President and Vice President, respectively, and the free and corporate act and deed of said corporation; and said [●] being by me duly sworn, did depose and say: that he resides in [●], [●] that he is a Vice President of THE BANK OF NEW YORK, one of the corporations described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of such corporation; and that he signed his name thereto by like order.
IN WITNESS WHEREOF I have hereunto set my hand and official seal. [SEAL]

Notary Public, State of New York

    

This instrument prepared by
____________________________ 
Joseph P. Hadley 
Davis Polk & Wardwell LLP 
450 Lexington Avenue 
New York, New York 10017 

[Signature Page to Fiftieth Supplemental Indenture]
    

EXHIBIT A 
 
[FORM OF FIRST MORTGAGE BOND, VARIABLE RATE SERIES 2016 DUE 2022]
No. ___    
THIS BOND IS NOT TRANSFERABLE EXCEPT AS PERMITTED IN SECTION 13 OF ARTICLE ONE OF THE FIFTIETH SUPPLEMENTAL INDENTURE.
THE DAYTON POWER AND LIGHT COMPANY 
(Incorporated under the laws of the State of Ohio) 
 
First Mortgage Bond, 
Variable Rate Series 2016 Due 2022

THE DAYTON POWER AND LIGHT COMPANY, a corporation of the State of Ohio (hereinafter called the Company), for value received, hereby promises to pay to ___________, as collateral agent (in such capacity, the “Collateral Agent”) for the Lenders under and as defined in the Credit Agreement (the “Credit Agreement”), dated as of August 24, 2016 among the Company, each lender from time to time party thereto (hereinafter called the “Lenders”) and JPMorgan Chase Bank, N.A., as Agent, or registered assigns, at the office or agency of the Company in the Borough of Manhattan, The City of New York, $445,000,000 on August 1, 2022, unless called for earlier redemption, or on any other date the amount of principal of the corresponding loans (hereinafter called the “Loans”) under the Credit Agreement (as hereinafter defined) become due and payable (whether by prepayment, upon acceleration or otherwise) in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts, and to pay to the registered owner hereof interest thereon from the Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for last preceding the date hereof, at such rate or rates per annum on each Interest Payment Date as shall cause the amount of interest payable on such Interest Payment Date on this Bond (as hereinafter defined) to equal the amount of interest payable on such Interest Payment Date on the corresponding Loans, such interest to be payable on the same dates as interest is payable on said Loans (each such date herein called an “Interest Payment Date”) until the maturity of this Bond, or if this Bond shall be duly called for redemption, until the redemption date, or if the Company shall default in the payment of the principal amount of this Bond, until the Company's obligation with respect to the payment of such principal shall be discharged as provided in the Indenture (as hereinafter defined).  The amount of interest payable on each Interest Payment Date shall be computed on the same basis as the amount of interest is computed on the corresponding said Loans.
The interest payable on any Interest Payment Date shall be paid to the holder in whose name this Bond is registered, except that if the Company shall default in the payment of any installment of interest on this Bond, such interest in default shall be paid to the holder in whose name this Bond is registered at the close of business on a date established for the payment of such defaulted interest by the Company in any lawful manner.   This Bond shall be payable as to principal, premium, if 

Exh. A-1
    

any, and interest in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts, at the office or agency of the Company in the Borough of Manhattan, The City of New York.
This Bond is one of an issue of First Mortgage Bonds (hereinafter called the “Bonds”) of the Company issued and to be issued in series under and pursuant to and equally secured by an indenture of mortgage and deed of trust dated as of October 1, 1935, executed by the Company to Irving Trust Company (now The Bank of New York Mellon), as Trustee, as said indenture has been amended and supplemented as hereinafter stated, and is one of a series of said First Mortgage Bonds, which series is designated as the “First Mortgage Bonds, Variable Rate Series 2016 Due 2022”, of the Company (hereinafter called the “New Bonds”) created and described in a Fiftieth Supplemental Indenture dated as of August 1, 2016, executed by the Company and The Bank of New York Mellon, as Trustee (such supplemental indenture, the “Fiftieth Supplemental Indenture”).  Subsequent to the execution and delivery of said indenture of mortgage and deed of trust there have been executed and delivered fifty indentures supplemental thereto, including the Fiftieth Supplemental Indenture, supplementing and amending as therein set forth certain provisions thereof (said indenture mortgage, together with all such indentures supplement, the “First Mortgage, as amended”).   Said indenture of mortgage and deed of trust and such supplemental indentures collectively are hereinafter sometimes called the “Indenture”.
For a description of the property mortgaged and pledged, the nature and extent of the security, the rights of the holders of the Bonds and of the Trustee therein and thereto, the duties and immunities of the Trustee, and the terms and conditions upon which the Bonds are issued and secured, reference is hereby made to the Indenture.  The rights and obligations of the Company and of the holders and registered owners of the Bonds of this issue may be modified or amended at the request of the Company by an indenture or indentures supplemental to the Indenture, executed pursuant to the consent in writing of the holders or registered owners of a majority in principal amount of the Bonds then outstanding affected by such modification or amendment, all in the manner and subject to the limitations set forth in the Indenture, any consent by the holder or registered owner of any Bond being conclusive and binding upon such holder or registered owner and upon all future holders and owners of such Bond, irrespective of whether or not any notation of such consent is made upon such Bond; provided that no such modification or amendment by such supplemental indenture shall extend the maturity of, or reduce the rate of interest on, or otherwise modify the terms of payment of the principal  or  interest of, this  Bond, which  obligations are absolute and unconditional, nor permit the creation of any lien ranking prior to or equal with the lien of the Indenture on any of the mortgaged property.  Notwithstanding the foregoing, pursuant to such Fiftieth Supplemental Indenture, the holders of the Bonds, by their acceptance and holding hereof, consent and agree to the amendments provided for in Article Four of such Fiftieth Supplemental Indenture.  The New Bonds are to be issued by the Company to the Collateral Agent and pledged as collateral security to the Collateral Agent, or its assignee, on behalf of and for the benefit of the Lenders, to evidence and secure the obligations of the Company to repay the Loans made by the Lenders to the Company pursuant to that certain Credit Agreement to assist in the refunding of the Company’s issued and outstanding Bonds of the 1.875% Series Due 2016 outstanding in the principal amount of $445,000,000.

Exh. A-2

    

Unless an Event of Default (as defined in the Credit Agreement) has occurred and is continuing, this Bond shall not be transferable by the Collateral Agent, except to (i) a successor Collateral Agent appointed pursuant to the terms of Section 9.06 of the Credit Agreement or (ii) the Company; provided that if an Event of Default (as defined in the Credit Agreement) has occurred and is continuing, the Collateral Agent shall have the right to transfer, assign or otherwise dispose of the New Bonds in accordance with the Credit Agreement and the Loan Documents (as defined in the Credit Agreement). 
In the event and to the extent the principal of, or premium, if any, or interest on any Loans shall be paid, whether at maturity, upon redemption, prepayment, acceleration or otherwise or shall otherwise be deemed to be paid, an equal amount of principal or premium, if any, or interest, as the case may be, payable with respect to an aggregate principal amount of corresponding New Bonds equal to an aggregate principal amount of such Loans shall be deemed to have been paid.
In the event that this Bond shall be deemed to have been paid in full in accordance with the paragraph immediately above, and the Credit Agreement (including without limitation, all commitments thereunder) shall have been terminated, this Bond shall be surrendered to the Trustee for cancellation and the Trustee shall forthwith cancel the same 
The New Bonds are subject to mandatory redemption by the Company prior to maturity at any time in whole or in part as provided in Section 5 of Article One of the Fiftieth Supplemental Indenture at a redemption price of 100% of the principal amount to be redeemed, plus accrued interest, if any, to the redemption date.
The New Bonds are subject to optional redemption by the Company prior to maturity at any time in whole or in part as provided in Section 7 of Article One of the Fiftieth Supplemental Indenture at the same redemption price, plus accrued interest and premium, if any, to the redemption date, as shall be payable on the Loans being concurrently prepaid therewith.
Any redemption of the New Bonds shall be made in the manner provided in Section 8 of Article One of the Fiftieth Supplemental Indenture, subject to the provisions of the First Mortgage as amended.
The principal hereof may be declared or may become due on the conditions, in the manner and at the time set forth in the Indenture, upon the happening of a completed default as provided in the Indenture.
The Trustee shall be entitled to request, receive and conclusively rely upon the certification of the Company, in an officer’s certificate of the interest rate of, Interest Payment Date of and basis on which interest is computed for, the Loans, from time to time as necessary to enable the Trustee to determine for the New Bonds their corresponding interest rate, Interest Payment Date and basis on which interest shall be computed.

Exh. A-3

    

The Trustee may conclusively presume that the obligation of the Company to pay the principal of, premium, if any, and interest on the New Bonds, as the case may be, on each date when due shall have been fully satisfied and discharged on each date when due unless and until a responsible officer of the Trustee within the corporate trust group administering the Indenture shall have received a written notice from the Collateral Agent, signed by a person certifying that he or she is an authorized officer of the Collateral Agent, stating that the payment of principal of or interest on the new Bonds has not been fully paid when due and specifying the amount of funds required to make such payment.
Before any transfer of this Bond by the registered holder or his or its legal representative will be recognized or given effect by the Trustee, the registered holder shall note the amounts of all reductions in the stated principal amount of this Bond, and shall notify the Trustee of the name and address of the transferee and, unless an Event of Default shall have occurred and be continuing under the Credit Agreement, shall afford the Trustee the opportunity of verifying the notation as to such reductions. By acceptance hereof the holder of this Bond and each transferee shall be deemed to have agreed to provide reasonable indemnity to the Trustee with respect to, and hold harmless the Trustee against, all losses, claims, damages or liability arising out of any failure on part of the holder or of any such transferee to comply with the requirements of the preceding sentence.
This Bond may be exchanged for a like principal amount of other New Bonds, or transferred as prescribed in the Indenture by the registered owner hereof in person, or by his duly authorized attorney, at the office or agency of the Company in the Borough of Manhattan, The City of New York, upon surrender and cancellation of this Bond and thereupon a new registered New Bond or New Bonds without coupons for a like principal amount and of authorized denominations will be issued in exchange therefor as provided in the Indenture.   The Company and the Trustee 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 premium, if any, and interest due hereon and for all other purposes.
Any costs or expenses (including any stamp tax or other governmental charge payable in connection with any such exchange or transfer) shall be for the account of the Company.  The New Bonds are issuable as registered Bonds without coupons in denominations of $1,000 and any integral multiple of $1,000.
No recourse shall be had for the payment of the principal of, or premium, if any, or interest on, this Bond, or under or upon any obligation, covenant or agreement contained in the Indenture, against (a) any incorporator, (b) any past, present, or future subscriber to capital stock, (c) any shareholder or (d) any officer or director, in each case, of (x) the Company or (y) of any predecessor or successor corporation  of the Company either directly or through the Company or any such predecessor or successor corporation of the Company, under any present or future rule of law, statute or constitution or by the enforcement of any assessment or otherwise, all such liability of incorporators, subscribers, shareholders, officers and directors being released by the registered owner hereof by the acceptance of this Bond and being likewise waived and released by the terms of the Indenture; provided that such limitation of liability of the persons and entities described in clauses (a) – (d) above shall not extend to any such persons or entities of a successor of the Company that expressly assumes the 

Exh. A-4

    

obligations of the Company or is liable under Section 2 of Article 15 of the First Mortgage if such persons or entities described in clauses (a)-(d) above waive such limitation of liability.
This Bond shall not become valid or obligatory for any purpose until The Bank of New York Mellon, the Trustee under the Indenture, or its successor thereunder, shall have signed the form of certificate endorsed hereon.

Exh. A-5

    

IN WITNESS WHEREOF, The Dayton Power and Light Company has caused this Bond to be executed in its name by the manual or facsimile signature of its President or any Vice President and its corporate seal to be hereunto affixed or a facsimile thereof reproduced hereon and attested by the manual or facsimile signature of its Corporate Secretary or an Assistant Corporate Secretary.

Dated: 
[SEAL] 

THE DAYTON POWER AND LIGHT COMPANY
		
	By:
	 
[President] [Vice President]

		
	Attest:
	 
[Corporate Secretary] 
[Assistant Corporate Secretary]

Exh. A-6

    

TRUSTEE’S CERTIFICATE
This Bond is one of the Bonds of the Series designated therein, described in the within‐mentioned Indenture.
THE BANK OF NEW YORK MELLON, as     Trustee
		
	By:
	 
Authorized Signatory

Exh. A-7Exhibit 10.10

 

To

Mr./Mrs.

 

Letter
of Indemnity

 

On
April 22, 2014 and May 7, 2014, the Company’s Remuneration/Audit Committee (as applicable) and the Company’s Board
of Directors resolved that the Company will indemnify and issue an advanced and retrospective undertaking to indemnify the Company’s
Corporate Office Holders specified in Appendix A of this Letter of Indemnity, pursuant to the provisions of this Letter
of Indemnity (hereinafter: "Indemnification Resolution").

 

After
the Company’s General Assembly approved the Indemnification Resolution by the duly required majority on June 12, 2014, we
hereby inform you that as you serve and/or have served and/or may serve as a Corporate Office Holder of the Company and/or subsidiaries
and/or affiliates of the Company and/or you are employed and/or were employed and/or may be employed by the Company and/or subsidiaries
and/or affiliates of the Company, the Company confirms and undertakes the following toward you, subject to legal provisions:

 

	1.	Indemnity
                                         Undertaking

 

Subject
to law, the Company undertakes to indemnify you for any liability or expense set forth in Article 2 below, which shall be applied
to you or which you shall incur due to one or more the following:

 

		(A)	Your
                                         actions and/or a derivative thereof by force of your being a Corporate Office Holder
                                         and/or employee of the Company and/or subsidiaries and/or affiliates of the Company,
                                         as they may be from time to time.

 

		(B)	Your
                                         actions and/or a derivative thereof by force of your being a Corporate Office Holder,
                                         employee or agent of the Company in any other corporation in which the Company holds
                                         securities, directly and/or indirectly (hereinafter: "Other Corporation").

 

Including
actions taken prior to issuance of this Letter of Indemnity provided the maximum amount of such indemnity shall not exceed the
maximum indemnity amount specified in Article 3 below for all kinds of liabilities and/or expenses and jointly for all Company
Corporate Office Holders.

 

In
this Letter of Indemnity:

 

	"Corporate
    Office Holder" -	 	As
    defined in the Companies Law, 5759-1999 (hereinafter: "Companies Law"), including "Senior Corporate
    Office Holder" - as defined in Article 37(D) of the Securities Law, 5728-1968 (hereinafter: "Securities Law")
    and/or any other law applying to activities performed by the Company and Senior Corporate Office Holders and any employee
    or service provider to which the Company decides to issue a Letter of Indemnity.
	 	 	 
	"Action"
    or any derivative thereof -	 	As
    defined in the Companies Law, including any resolution and/or implied omission and including all actions taken by you prior
    to this Letter of Indemnity during your employment with the Company and/or subsidiaries and/or affiliates of the Company and/or
    during your tenure as a Corporate Office Holder in the Company and/or subsidiaries and/or affiliates of the Company and/or
    Other Corporation as defined above.
	 	 	 
	"Claim"	 	Including
    a civil action, administrative action, criminal action, derivative action, class action, composition applications, creditor
    claims, claim for monetary damages and petition for declarative relief.

 

     

     

    

 

	2.	Grounds
                                         of Indemnity

 

The
Indemnity Undertaking set forth in Article 1 above shall apply to any liability or expense that is indemnifiable by law including
the Companies Law and the Company Articles of Incorporation, as set forth below:

 

		2.1	Monetary
                                         liability applied to you in favor of another by force of a ruling, including a ruling
                                         issued by settlement or arbitral award approved by a court, related directly or indirectly
                                         to one or more of the instances specified in the addendum to this Letter of Indemnity
                                         (hereinafter: "the Addendum") or any part thereof (hereinafter: "the
                                         Determining Instances") provided the maximum amount of indemnity for each of
                                         the Determining Instances shall not exceed the amount set forth in the Addendum, where
                                         it is linked to the increase in the consumer price index as of approval of this Letter
                                         of Indemnity by the Company and until the actual indemnification date, for each of the
                                         Determining Instances, severally for each instance and for each Company Corporate Office
                                         Holder (hereinafter: "the Final Liability");

 

		2.2	Reasonable
litigation expenses, including attorney retainer fees incurred due to an investigation or procedure conducted against you by an
authority competent to conduct such an investigation or procedure, and which ended without an indictment against you1
and without your being subject to any monetary liability in lieu of criminal proceedings, or which ended without an indictment
against you but subject to a monetary liability in lieu of criminal proceedings in an offense that does not require proof of criminal
intent or relating to a monetary sanction;

 

			In
                                         this paragraph -

 

			Concluding
                                         a procedure without an indictment for a matter subject of criminal investigation means
                                         closing of the case pursuant to Article 62 of the Criminal Procedure Law [Combined Version],
                                         5742-1982 (in this sub article - Criminal Procedure Law) or a stay of proceedings by
                                         the Attorney General pursuant to Article 231 of the Criminal Procedure Law;

 

"Monetary
liability in lieu of a criminal proceeding" - A monetary liability applied by law as an alternative to a criminal proceeding,
including an administrative penalty pursuant to the Administrative Offense Law, 5746-1985, a penalty for an offense defined a
penalty offense pursuant to the Criminal Procedure law, monetary sanction or ransom.

 

		2.3	Reasonable
                                         litigation expenses, including attorney retainer fees and expenses to which you were
                                         subjected by a court in a proceeding filed against you by the Company or Other Corporation,
                                         as the case may be, or on behalf of any of them or any other person2, or
                                         a criminal allegation of which you were acquitted, or a criminal allegation of which
                                         you were convicted of an offense that does not require proof of criminal intent.

 

 

 

 

 

	1	Including
                                         the withdrawal of an accusation after filing an indictment, subject to the indemnification
                                         terms specified in Article 5 below.
	2
	Including a plaintiff in a derivative action, as defined
in the Companies Law.

 

    	 	2	 

     

    

 

		2.4	Expenses
                                         spent in relation to a procedure conducted in your regard, including reasonable litigation
                                         expenses and including attorney retainer fees. 

 

Regarding
this Article 2.4, "Proceeding" - Any proceeding pursuant to Section 8-3 of the Securities Law (Imposition of Financial
Sanctions by the Securities Authority), proceeding pursuant to Chapter 8-4 of the Securities Law (Imposition of Administrative
Enforcement Measures by the Administrative Enforcement Committee), proceeding pursuant to Chapter 9-1 of the Securities Law (Arrangement
to Prevent the Initiation of Proceedings or to Conclude Proceedings, Subject to Conditions) and proceeding pursuant to Article
D (Imposition of Financial Sanctions by the Securities Authority) of Section 4 (Remedies, Financial Sanctions and Company Registration
as a Violating Company) in Section 9 of the Companies Law.

 

		2.5	Payment
                                         to the party injured by the violation as set forth in Article 52.54 (A)(1)(A)
                                         of the Securities Law pursuant to pursuant to Chapter 8-4 of the Securities Law
                                         (Imposition of Administrative Enforcement Measures by the Administrative Enforcement
                                         Committee).

 

		2.6	Any
                                         other liability or expense indemnifiable by law.

 

	3.	Indemnification
                                         Amount

 

		3.1	Cumulative
                                         Indemnification Amount

 

The
total indemnification amount that the Company shall cumulatively pay all Company Corporate Office Holders pursuant to all Indemnity
Letters issued and which shall be issued by the Company upon the Indemnity Resolution (hereinafter: "the Letters of Indemnity")
shall not exceed a total equivalent to 25% of the Company's determining equity (hereinafter: "Maximum Indemnification
Amount"). In this regard, the "Company's Determining Equity" means the Company's equity related to Company
shareholders pursuant to its latest consolidated audited or reviewed financial reports, as the case may be, as on the date of
indemnity payment.

 

It
is hereby clarified that payment of the said indemnification amount does not derogate from your right to insurance proceeds, including
as related to the Indemnity Letter Determining Instances insured by an insurance company, which the Company will receive for you
from time to time, if any, as part of any Company Corporate Office Holders' insurance provided you are not paid double compensation
for any indemnifiable liability or expense as set forth in Article 2 above and subject to the provisions of Article 5.6 below.

 

Without
derogating from Article 5.6 below, it is hereby explicitly emphasized that Company payments shall comprise an "additional
layer" beyond the total insurance proceeds paid by the insurer, if any. In addition, it is hereby emphasized that this indemnification
undertaking is not a contract in favor of any third party, including any insurer, and it is non-assignable and no insurer shall
have the right to demand Company participation in payment to which the insurer is obligated according to an insurance agreement
signed therewith, excluding the deductible set forth in the said agreement.

 

    	 	3	 

     

    

 

Where
the total indemnification amounts that the Company is required to pay at any time, plus all indemnification amounts paid by the
Company until such time pursuant to the Letters of Indemnification, exceeds the Maximum Indemnification Amount, the Maximum Indemnification
Amount or the balance thereof, as the case may be, shall be divided among the Company Corporate Office Holders who shall be entitled
to indemnification for demands submitted to the Company under the Letters of Indemnification and which were not paid thereto before
such time (hereinafter: "Entitled Corporate Office Holders") where the Indemnification Amount actually received by each
of the Entitled Corporate Office Holders shall be calculated upon the pro rata share between the indemnification amount that would
have been due to each of the Entitled Corporate Office Holders and the cumulative indemnification amount that would have been
due to each such Entitled Corporate Office Holder upon submitting such demands, were it not for the Maximum Indemnification Amount.

 

Where
the Company paid Company Corporate Office Holders indemnification of the Maximum Indemnification Amount, the Company shall not
bear additional indemnification amounts unless payment of the Additional Indemnification Amounts is approved by the Company organs
authorized to approve such increase by law upon paying the Additional Indemnification Amounts and subject to an amendment of the
Company Articles of Incorporation, where so required by law.

 

It
shall be clarified that this Letter of Indemnity does not limit the Company or prevent it from increasing the Maximum Indemnification
Amount for indemnifiable instances, whether due to the reduction of insurance fees in Corporate Office Holder liability insurance
policies or because the Company is unable to obtain Corporate Office Holder insurance to cover the indemnifiable instances upon
reasonable terms or whether for any other reason, provided the said resolution is passed in the manner set forth in the Companies
Law.

 

		3.2	Indemnification
                                         Amount for Determining Instances

 

Subject
to Article 3.1 above, the indemnification undertaking for each of the Determining Instances shall be limited, separately for each
Company Corporate Office Holder and for each instance, to the indemnifiable liability or expense as set forth above, but no more
than the Maximum Indemnification Amount for each of the Determining Instances.

 

	4.	Interim Payments

 

Upon
the occurrence of an instance for which you may be entitled to indemnification as set forth above, the Company will provide you,
from time to time, with the money required to cover the expenses and other payments related to handling any legal proceeding against
you as related to the said instance, including investigation proceedings, whereby you will not be required to pay or financing
them yourself, including the provision of guarantees and collateral, all subject to the terms and provisions set forth in this
Letter of Indemnity. It shall be emphasized that the Company will not require you to provide any collateral as a condition for
transferring you the said funds.

 

Where
the Company pays amounts to you or in your stead under this Letter of Indemnity regarding a legal proceeding and where it is found
that you are not entitled to indemnification from the Company regarding the said amounts, the provisions of Article 5.8 below
shall apply.

 

    	 	4	 

     

    

 

	5.	Conditions
                                         of Indemnification

 

Without
derogating from the above, indemnification under this Letter of Indemnity is subject to the following conditions:

 

		5.1	Indemnification
                                         Notice

 

You
shall notify the Company in writing of any claim and/or legal proceeding and/or administrative proceeding and/or investigation
by any authority authorized to conduct such investigation or hearing, to be opened against you and/or of any written notice or
concern or threat of such proceedings being opened against you regarding any instance for which the indemnification may apply
(hereinafter, jointly and severally: "the Proceeding") immediately after you first learn thereof and within a
period that will leave sufficient time to respond to the Proceeding, as required by law (hereinafter: "the Indemnification
Notice") and you will provide the Company and/or whoever it so instructs, with any document that you receive and/or that
is in your possession regarding the said Proceeding.

 

Failure
to submit the Indemnification Notice as set forth above shall not release the Company from its undertakings under this Indemnity
Letter, except where failure to submit the Indemnification Notice will materially impair the Company's rights to defend itself
on its behalf (where it is also sued in the said Proceeding) and/or on your behalf against the claim and the scope of such impairment.

 

		5.2	Handling
                                         the Defense

 

Provided
the matter does not dispute relevant legal provisions or the Corporate Office Holder Liability Insurance Policy purchased by the
Company, the Company shall be entitled to take on handling of your defense in the said proceeding and/or to delegate such handling
to an attorney selected by the Company to this end (excluding a lawyer that you object to on reasonable grounds). The Company
and/or the said lawyer will act under the said handling toward resolving the said Proceeding, they will provide you with ongoing
progress reports relating to the Procedures and will consult with you on its handling; the said Company appointed lawyer shall
act and be obligated by a duty of trust to you and the Company. Where you or the Company or the lawyer sense a concern of conflict
of interest between you and the Company in your defense in the said Proceeding, you will notify the Company or the Company or
lawyer will notify you, as the case may be, of the said conflict of interest and you shall be entitled to appoint a lawyer on
your behalf to handle your defense and the provision of this Letter of Indemnity shall apply to your expenses relating to the
said appointment of a lawyer. Notwithstanding this Article, where the Company Director and Corporate Office Holder Insurance Policy
applies to the said matter, you and the Company shall act in accordance with the provisions of the policy as related to disputes
with the insurer on the identity of the representing attorney, where policy provisions so require, whereby handing the issue over
to the other representing attorney will not release the insurer from its obligation under the policy or its reduction in any way.
The Company shall not be permitted to end this Proceeding by way of settlement and/or arrangement and/or will not agree to a settlement
and/or arrangement that will require you to pay amounts for which you will not be indemnified under this Letter of Indemnity and
which shall not be paid under the Company Corporate Office Holder Liability Insurance that will be purchased, if any, by the Company
and/or its subsidiary and/or affiliate and/or Other Corporation, except upon your prior and written consent to the achieved settlement.
In addition, the Company shall not be entitled to bring the dispute herein to resolution by way of arbitration or settlement or
mediation, except upon your prior written consent and provided you do not refuse your said consent except on reasonable grounds
provided to the Company in writing. In order to remove all doubt, even where the dispute is submitted for resolution by way of
arbitration or settlement or mediation or in any other manner, the Company shall bear all of the related expenses.

 

    	 	5	 

     

    

 

Notwithstanding
the above, the Company shall not be entitled to end the said Proceeding by way of settlement and/or arrangement and/or presenting
the dispute herein to resolution by way of arbitration or settlement or mediation in the event of criminal charge against you,
unless you grant your consent thereto in advance and in writing. You may refuse consent set forth in this article upon your exclusive
discretion and without being required to explain your consent.

 

If,
within 7 days of the Company receiving the Indemnification Notice (or a shorter period if so required for submitting your statement
of defense or response to the Proceeding), as set forth above, the Company does not accept your defense against the said Proceeding,
or if you object to your representation by the Company lawyers on reasonable grounds or for fear of conflict of interest, you
shall be entitled to assign your representation to a lawyer that you choose and the provisions of this Letter of Indemnity shall
apply to the expenses that you incur for the said appointment of an attorney.

 

		5.3	Cooperation
                                         with the Company

 

Upon
Company request, you will sign any document that authorizes it and/or any lawyer as set forth above, to handle your defense on
your behalf and to represent you on all matters relating to the said Proceeding, as set forth above.

 

You
will cooperate with the Company and/or any lawyer specified above and you will uphold the provisions set forth by the insurers
in any Corporate Office Holder Liability Insurance Policy that the Company and/or you engage in regarding defense in the Proceeding,
in any reasonable manner required of you by any of them as part of their handling the said Proceeding, provided the Company or
insurance company, as relevant, shall cover all of your related expenses whereby you are not required to pay or finance them yourself,
all subject to Articles 1 and 3 above.

 

No
waiver, laches, avoidance of action or extension by the Company or you shall be construed as a waiver of your rights under this
Letter of Indemnity and by law, and they will not prevent the Company or you from taking all legal and other measures required
toward exercising your said rights.

 

		5.4	Covering
                                         Liabilities

 

Whether
the Company acts upon Article 5.2 above or not, it shall see that the liabilities and expenses set forth in Article 2 above are
covered, whereby you will not be required to pay or finance them yourself, all without it derogating from the indemnification
guaranteed to you by this Letter of Indemnity and/or an insurance policy that the Company acquires from time to time, if any,
all subject to Articles 1 and 3 above.

 

		5.5	Non
                                         Application of Indemnity in cases of Settlement or Admission

 

The
indemnity relating to any proceeding against you, as set forth in this Letter of Indemnity, shall not apply to any amount that
you are required to pay the claimant due to settlement or arbitration, unless the Company agrees to the said settlement or arrangement
or to the said arbitration process, as the case may be, but the Company shall not withhold its consent except on reasonable grounds.

 

In
addition, the indemnity shall not apply in the event that you admit to a criminal indictment in an offense that does not require
proof of criminal intent or in a Proceeding, as defined in Article 2.4 above, unless your admission was approved by the Company
in advance and in writing.

 

    	 	6	 

     

    

 

		5.6	Non
                                         Application of Indemnity in cases of Indemnity or Third Party Insurance

 

The
Company shall not be required to pay amounts under this Letter of Indemnity for any instance whatsoever where such amounts were
paid to you or for you or in your stead in any way under the Company Corporate Office Holder Liability Insurance or indemnity
of any third party other than the Company. In order to remove all doubt, it shall be clarified that the Maximum Indemnity Amount
under this Letter of Indemnity shall apply above and beyond the amount paid (if any) under the insurance and/or indemnity of any
person other than the Company, provided you are not paid double compensation for any indemnifiable liability or expense as set
forth in Article 2 above and that where you are indemnified by a Company insurer pursuant to the Director and Corporate Office
Holder Liability Insurance policy or by force of any other indemnity agreement, for the matter to which the indemnity applies,
the indemnity will equal the difference between the indemnifiable liability and/or expense as set forth in Article 2 above and
between the amount received by force of the insurance policy or the other indemnity agreement for the same matter, provided the
indemnity amount that the Company undertook will not exceed the Maximum Indemnity Amount. In addition, it shall be clarified that
the content of this Article shall not apply to the deductible applying to the Director and Corporate Office Holder Liability Insurance
Policy obtained by the Company.

 

Regarding
the Company's undertaking of indemnity for an act that you performed or will performed by force of your being a Corporate Office
Holder and/or employee of a Company subsidiary and/or Company affiliate and/or Other Corporation (hereinafter, jointly and severally:
"the Owing Corporation"), the following provisions shall also apply:

 

		(A)	The
                                         Company shall not be required, under this Letter of Indemnity, to pay amounts to which
                                         you will be entitled and which you will receive from the Owing Corporation as part of
                                         an insurance policy obtained by the Owing Corporation and/or an advanced undertaking
                                         of indemnification or an indemnity permit issued by the Owing Corporation.

 

		(B)	If
                                         your demand for indemnification and/or insurance coverage for an act committed by force
                                         of your position in the Owing Corporation and which may be indemnifiable under this Letter
                                         of Indemnity, is rejected by the Owing Corporation or the Owing Corporation insurance
                                         company, as the case may be, the Company will pay you, under this Letter of Indemnity,
                                         the amounts to which you shall be entitled under this Letter of Indemnity, if you are
                                         so entitled, and you shall assign the Company your rights to any amounts from the Owing
                                         Corporation and/or pursuant to the Owing Corporation insurance policy and you will authorized
                                         the company to collect such amounts in your name, where such authorization is required
                                         in order to fulfill the provisions of this article. In this regard you undertake to sign
                                         any document required by the Company toward assigning your said rights and authorizing
                                         the Company to collect the said amounts in your name.

 

		(C)	In
                                         order to remove all doubt, it is hereby clarified that this Letter of Indemnity does
                                         not grant the Owing Corporation and/or any other third party any rights toward the Company,
                                         including, but without derogating from the generality of the above, the right to sue
                                         and/or demand any payment from the Company as participation in the indemnity and/or insurance
                                         coverage granted to you by the Owing Corporation for an act performed by force of your
                                         position with the Owing Company.

 

    	 	7	 

     

    

 

		5.7	Indemnification
                                         Payment

 

Upon
your request for any payment relating to any instance under this Letter of Indemnity, the Company shall take all actions necessary
by law for payment thereof and shall take measurements to arrange any approval required in this regard, if any. If any approval
is required for the said payment and such payment is not approved for any reason whatsoever, this payment or any unapproved part
thereof shall be subject to court approval and the Company will act toward obtaining it.

 

		5.8	Returning
                                         Paid Indemnity Amounts

 

In
the event that the Company pays any amounts to you or in your stead under this Letter of Indemnity as related to a Proceeding
and it is later found that you are not entitled to Company indemnity for the said amounts, the said amounts shall be considered
a loan granted to you by the Company, which shall bear interest of the minimal rate as set forth by law from time to time in order
to prevent it from being a taxable benefit for the recipient, and you shall be required to return such amounts to the Company,
including VAT for the interest as required by law, when you are so required to do in writing and in the order of payments determined
by the Company (provided the said amounts are paid to the Company in full until no later than 3 months after the Company learned
that you are not entitled to indemnification for the said amounts.

 

Where
the charge for which the amount was paid was canceled or where the amount was reduced for any reason whatsoever - you shall assign
your full rights to restoration of the amount from the claimant in the Proceeding and will do all that is necessary for such assignment
to be valid and for the Company to be able to exercise it. Upon doing so, you shall be exempt of repaying the amount whose right
of restoration was assigned to the Company. In failure to do so, you shall be required to repay the Company the amount or part
thereof, as the case may be, in addition to linkage differentials and interest at rates and for a period for which you shall be
entitled repayment of the amount from the claimant.

 

		5.9	Collateral
                                         in favor of the Insurer

 

Notwithstanding
this Letter of Indemnity above (including Article 4 above) and seeing that, as set forth in Article 3.1 above the Company payments
shall comprise an "additional layer" beyond the insurance fees paid to you by the insurer, where any such fees are paid,
then whenever you might be entitled to indemnification, where you are required to incur expenses and payments relating to the
legal proceedings against you and related to the said instance, you will first turn to the insurance for the money required to
cover the said expenses and payments. To this end, the Company undertakes to provide the insurer with all of the collateral required
by the insurer, if any, in order to obtain the said funds, provided the amount of such collateral will not exceed the Maximum
Indemnity Amount, as defined below.

 

Where
it is found later that you are not entitled to amounts that you receive from the insurer, if any, you will be required to repay
it the said amounts immediately in order to release the collateral that the Company provided to the insurer. In failure to do
so, the collateral that the Company provided the insurer and which were thereby exercised, shall be considered a loan subject
to terms set forth in Article 5.8 above, mutatis mutandis.

 

    	 	8	 

     

    

 

	6.	Indemnification
                                         Period 

 

Company
undertakings pursuant to this Letter of Indemnity will apply in your favor, in favor of your estate, heirs and other alternates
by law, unlimited by time, and it shall not be canceled or changed except for your benefit, all after the end of your employment
with the Company and/or your term as a Corporate Office Holder in the Company and/or subsidiaries and/or affiliates of the Company
and/or the Other Corporation as defined above, as the case may be, regardless of the date of discovery of the instance for which
you are entitled to indemnification under this Letter of Indemnity and provided that the acts for which indemnity is granted were
performed while you were employed by the Company and/or during your term as a Corporate Office Holder of the Company and/or Company
subsidiaries and/or Company affiliates and/or the said Other Corporation

 

	7.	This
                                         letter of undertaking is subject to all laws and Company documents of incorporation.
                                         Company undertakings under this Letter of Indemnity shall be construed in an expansionary
                                         manner and in the manner intended for implementation, as permitted by law, for the purpose
                                         intended. In the event of a dispute between any provision of this Letter of Indemnity
                                         and the provisions of law, which cannot be conditioned, altered or amended, the provision
                                         of law shall prevail but it shall not impair or derogate from the validity of all other
                                         provisions of this Letter of Indemnity.

 

	8.	This
                                         Letter of Indemnity shall enter into force upon your signing a copy thereof in the intended
                                         place and submitting the signed copy to the Company.

 

	9.	The
                                         content of this Letter of Indemnity does not derogate from the waiver issued to you by
                                         the Company, if any. In addition, in order to remove all doubt, it is hereby clarified
                                         that the Indemnification Undertaking under this letter does not derogate from the Company's
                                         right to decide on additional indemnification in retrospect or in advance and/or to increase
                                         existing indemnification, all subject to obtaining the approvals required by law.

 

In
order to remove all doubt, it is hereby clarified that the undertaking of this Letter of Indemnity does not revoke or derogate
or waive any other indemnity to which the Corporate Office Holder is entitled from any other source by law or pursuant to any
prior Company undertaking or agreement, provided the Company will not be required to indemnify the Corporate Office Holder by
more than the liability and expenses incurred for each instance, both according to the prior undertaking (if any and where valid)
and according to this Letter of Indemnity, provided the overall Indemnity Amount (excluding amounts received from the insurance
policy) does not exceed the Maximum Indemnity Amount defined above.

 

	10.	The
                                         addendum to this Letter of Indemnity comprises an integral part thereof.

 

	11.	The
                                         law governing this Letter of Indemnity is the law in Israel and the competent court in
                                         Tel Aviv shall have sole jurisdiction to preside over disputes derived of the application
                                         of this agreement.

 

 

In
witness whereof, the Company set its signature below:

 

	Date:                                             	
	 	Nano
Dimension Ltd.

 

    	 	9	 

     

    

 

I
the undersigned confirm receipt of this Letter of Indemnity and confirm my consent to its conditions, including Article 5.8 above.

 

 

 

 

 

 

 

________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

The
Addendum

 

	 	 	Determining
    Instances	 	Final Liability
(NIS in millions)3
	 	 	 	 	 
	1	 	Any
    claim or demand filed by a customer, supplier, contractor or any other third party that conducts any kind of business with
    the Company, its subsidiaries, affiliates or Other Corporation as defined above (hereinafter, in this addendum, jointly and/or
    severally: "the Company") including as related to negotiations with them and/or any other claim and/or demand
    filed against a Corporate Office Holder by any person and/or corporation and/or entity and/or authority operating by law.	 	10
	 	 	 	 	 
	2	 	Any
    claim or demand filed in relation to a transaction conducted in the Company's ordinary course of business or outside its ordinary
    course of business, including for receiving credit, selling, leasing, transferring or purchasing assets or liabilities, including
    securities, and receiving and/or granting an option to sell, lease, transfer or purchase such assets or liabilities (including,
    but without derogating from the generality of the above, goods, land, securities or rights, or granting or receiving a right
    in any of them), negotiations toward entering a transaction and receiving and/or granting an option for the sale lease, transfer
    or acquisition of such assets and liabilities, encumbering assets and liabilities and granting or receiving collateral, including
    engaging in financing agreements with banks and/or other financial entities in order to finance the executed engagements or
    transactions, real estate management of any kind and any activity related thereto, including negotiation toward the acquisition
    of the real estate, its establishment, operation and sale and any other matter related to the above, directly or indirectly,
    all whether the said transactions and/or activities as stated and whether they are not completed for any reason whatsoever.	 	8
	 	 	 	 	 
	3	 	Any
claim or demand filed by employees, consultants, agents, self-employed contractors, franchisees, distributors, marketers, suppliers
and service providers or other individuals or a an entity employed or providing the Company with services, related to compensation
due to them or damages or liabilities caused thereto regarding their employment by the Company or their engagement with the Company,
including instances related to the employees' employment terms and employer-employee relations, including negotiations on employment
and termination terms, employee promotion, handling pension issues, insurance and savings funds and granting securities and other
benefits.	 	8

 

 

	3	The
                                         amounts set forth below are linked to the increase in the consumer price index as of
                                         the date of approval of this Letter of Indemnity by the Company and until the actual
                                         indemnity date.

 

    	 	11	 

     

    

 

	4	 	Any
        claim or demand relating to non-disclosure or failure to provide any kind of information when required by law, or relating
        to misleading or flawed disclosure of such information to third parties, including holders of Company securities or deemed
        holders of securities, including as related to an issuance, allocation, distribution, acquisition, holding or link to
        Company securities or any other investment activity involving or influenced by the Company's securities. Without derogating
        from the generality of the above, such instance will also apply to a public offering of securities pursuant to a prospectus,
        a private offering, alternative purchasing proposal or any other securities offer.

         

        Any
        claim or demand relating to non-disclosure or failure to provide any kind of information when required by law, or relating
        to misleading or flawed disclosure of such information to third parties, including Income Tax, Value Added Tax, National
        Insurance Institute, Investment Center, local authorities, Ministry of Environmental Protection and any other governmental
        or institutional function or trade union.
	 	10
	 	 	 	 	 
	5	 	Any
    claim or demand relating to any instance derived or related to an offering and/or issuance of Company securities to the public
    and/or employees and/or private placement and/or acquisition offer and/or alternate acquisition offer and/or any other manner,
    in Israel or abroad (including, inter alia, but not limited to claims based on a prospectus and/or draft prospectus to be
    completed and/or complementary notice and/or shelf prospectus and/or shelf proposal report and/or outline and/or private offering
    report and/or acquisition offering specification and/or any other report published by the Company (in this article, below:
    "the Report"), or disclosure or non-disclosure of details therein, or reporting or non reporting any post
    offering issue according to the report, or the fulfillment or non-fulfillment of the provisions of the relevant securities
    laws) and including any claim or demand related to the issues that required presentation and/or disclosure in the Report including
    any draft thereof, which occurred before the reporting date or thereafter in a period commencing on the reporting date and
    ending at the end of the period for submitting orders and/or after the acceptance period (as the case may be) and that were
    not properly disclosed by law in the Report or later reports issued by the Company and/or a corporation in its control (hereinafter:
    "Lacking or Misleading Reporting") provided that immediately after the issue came to the attention of the Corporate
    Office Holder regarding the Lacking or Misleading Reporting, the Corporate Office Holder acted as required by law. For the
    purpose of this paragraph, "Reports" - include periodic reports, immediate reports, financial reports and any other
    report that the Company or Corporate Office Holder must submit by law.	 	10
	 	 	 	 	 
	6	 	Any
    claim or demand filed on grounds that a third party right of intellectual property was misused or allegedly misused by the
    Company or anyone on its behalf.	 	6
	 	 	 	 	 
	7	 	Resolutions
    and/or actions related to the Consumer Protection Law and/or orders and/or regulations derived thereof.	 	6

 

    	 	12	 

     

    

 

	8	 	Any
    action related to submitting bids for tenders and/or franchises and/or licenses, of any kind and form.	 	9
	 	 	 	 	 
	9	 	Any
    claim or demand filed by a lender or creditor or related to funds thereby lent or Company debts toward them.	 	10
	 	 	 	 	 
	10	 	Any
    claim or demand filed by a third party for physical damages, including death, or damage to a business or personal asset, including
    loss of use thereof during any act or omission related to the Company, or respectively to its Corporate Office Holders, employees,
    agents or other people acting or alleging to act on behalf of the Company and/or by force of their position in the Company.   	 	4
	 	 	 	 	 
	10	 	Any
    claim or demand filed directly or indirectly regarding a full or partial omission by the Company or by the Company Corporate
    Office Holders, managers or employees as related to payment, reporting or documenting documents of one of the state authorities,
    external authority, municipal authority or any other payment required by the laws of Israel and any other country, including
    income tax, sales tax, capital gains tax, transfer taxes, excise tax, value added tax, stamp tax, customs, national insurance,
    salaries or delayed salary to employees or other delays, including any kind of interest and linkage additions.    	 	10
	 	 	 	 	 
	11	 	Any
    claim or demand filed by buyers, owners, lessors, lessees or other holders of Company assets or products, or individuals dealing
    with the said products, for damages or losses related to the use of the said assets or products.	 	10
	 	 	 	 	 
	12	 	Any
        administrative, public or judicial action, orders, rulings, claims, demands, claim letters, instructions, arguments, encumbrances,
        seizures, investigation proceedings or notices of non-compliance or violation from a governmental authority or others
        alleging to potential responsibility or liability (including enforcement expenses, investigations, governmental authority
        responses, cleaning, removal or repair for damages to natural resources, ground damages, physical damages or fines or
        contributions, indemnification, recuperation fees, compensation) as a result, whether in Israel or abroad, based on or
        related to:

         

        (A)
        Appearance of released liquid, emission, leak, flood, spill, release, filtering or migration on the ground and/or underneath
        and/or above it (hereinafter, jointly: "Pollution") or a risk of Pollution or exposure to any other kind
        of hazardous, toxic, volatile or radioactive material, waste or other substances that must be subject to regulation under
        the Environmental Protection Laws, in any location owned, operated, leased or managed by the Company.

         

        (B)
        Circumstances that generate any kind of violation of the Environmental Protection Laws, environmental licenses, permits
        or other approvals required according to the Environmental Protection Laws.
	 	4

 

    	 	13	 

     

    

 

	13	 	Any
    administrative, public, judicial, action, orders, rulings, claims, demands, letters of demands, instructions, arguments, investigations,
    proceedings (including administrative proceedings, subject to law) or notices of non-compliance or violation of any act of
    a governmental authority or other entity alleging to non-fulfillment of the provisions of a law, regulation, order, ordinance,
    rule, custom, instruction, license or ruling by the Company or a Corporate Office Holder of the Company as part of their position
    with the Company.	 	10
	 	 	 	 	 
	15	 	Any
    claim or demand relating to a change in the Company's organizational structure or its reorganization or any decision relating
    thereto, including but without derogating from the generality of the above, merger, split, change in Company equity, establishing
    subsidiaries, liquidating or selling them to third parties.	 	10
	 	 	 	 	 
	16	 	Any
    claim or demand relating to a resolution or action taken by the Company or a Corporate Office Holder in its position with
    the Company after the appropriate checks and consultations were conducted for the specific resolution and action, including
    resolutions passed by the Company board of directors or one of its committees.   	 	10
	 	 	 	 	 
	17	 	Any
    claim or demand relating to an expression, statement, including expressing a position or opinion or vote, within a board meeting,
    committees thereof, general assemblies of corporations and/or other corporate organs made in good faith by the Corporate Office
    Holder in the performance of its position with the Company.	 	8
	 	 	 	 	 
	18	 	Any
    claim or demand relating to an opinion of the Company board of directors to the offering of a purchase proposal, regarding
    the worthwhileness of a special purchase offer pursuant to Article 329 of the Companies Law 5759-1999 or avoiding the provision
    of such an opinion and any opinion and/or pretense required by law.	 	10
	 	 	 	 	 
	19	 	Any
    claim or demand relating to the instances set forth above, as related to the tenure of the Corporate Office Holder in Company
    subsidiaries and/or affiliates and/or any Other Corporation whether in its role as Corporate Office Holder and/or as an employee
    of one of the said companies.	 	10
	 	 	 	 	 
	20	 	All
    actions related to the execution of a transaction related to insurance or actions that led to failure to obtain appropriate
    insurance arrangements, including affiliation with sub insurers and/or agents and/or insurers and/or insureds and/or other
    customers.	 	10
	 	 	 	 	 
	21	 	Any
    action relating to distribution, as defined in the Companies Law, including the distribution of dividends to Company shareholders,
    the acquisition of convertible shares and/or securities by the Company, provided indemnification for such act does not violate
    any law.	 	10

 

    	 	14	 

     

    

 

	22	 	Any
    claim or demand filed in relation to an act of selling, purchasing or holding negotiable securities for or on behalf of the
    Company and/or to managing an investment portfolio and/or accounts with stock exchange members and/or banks and/or deposits.	 	12
	 	 	 	 	 
	23	 	Any
    claim or demand filed in relation to an action related to investments that the Company is considering and/or performing with
    any securities, taken in stages before and/or after the investment, in order to engage, execute, develop, monitor and supervise
    a transaction and claims related to purchase and/or sale activities (by the Company and/or Company subsidiaries), directly
    and/or indirectly, of assets (including shares) and rights, in Israel and abroad or an investment in Other Corporation securities
    or obtaining rights in such corporations, including the acquisition and/or sale of controlling nuclei thereof whether performed
    in the ordinary course of Company business or not, and including, without derogating from the generality of the above, the
    decisions, agreements, notices, disclosure documents, negotiations and reports related thereto, and any other matter related
    to all of the above, directly or indirectly, whether such sales and/or acquisitions are completed or not, for any reason whatsoever.	 	12
	 	 	 	 	 
	24	 	Any
    claim and demand by Company security holders, including Company shareholders, including holders of future Company securities
    (including shares) or Company creditors, for a violation of Companies Laws, Securities Laws or any other law granting them
    grounds of claim.	 	12
	 	 	 	 	 
	25	 	Any
    claim or demand filed in relation to the appointment or petition to appoint a receiver for Company and/or subsidiary and/or
    affiliate assets or any part of their assets and/or a liquidation petition against the Company and/or subsidiaries and/or
    affiliates and/or any proceedings toward reaching a settlement or composition of creditors for the Company and/or subsidiaries
    and/or affiliates.	 	10
	 	 	 	 	 
	26	 	Actions
    related, inter alia and without derogating from the generality of the above, to the acquisition or sale of companies, legal
    entities or assets, and to instances related, directly or indirectly, to antitrust issues, including binding arrangements,
    monopolies, splits or mergers and legal and other outcomes that may derived thereof.	 	10
	 	 	 	 	 
	27	 	Any
    claim or demand filed in relation to the management of money, accounts, loans and credit facilities, financial vehicle transactions,
    guarantees, collateral, trusts, financial management and consulting agreements, etc.	 	10
	 	 	 	 	 
	28	 	Any
    claim or demand filed in relation to an act related to a report or notice submitted upon the Companies Law, 5759-1999 and/or
    the Securities Law, 5728-1968 including regulations derived thereof or laws and regulations that address similar issues outside
    of Israel or pursuant to rules and guidelines customary in the stock market in Israel or abroad and/or avoiding submission
    of such report or notice.	 	10

 

    	 	15	 

     

    

 

	29	 	Any
    claim or demand filed in relation to an act involving the preparation and/or approval of periodic reports and/or interim reports
    and/or immediate reports and/or business plan and/or budget and/or forecasts and/or work plans and/or procedures and/or intra-organizational
    guidelines and/or internal auditing procedures.	 	10
	 	 	 	 	 
	30	 	Any
    claim or demand relating to internal auditing in the Company and procedures regarding the reporting and disclosure of the
    Company's periodic and immediate reports, including the Company's financial reports and the board and management report on
    the effectiveness of the internal audit as related to the financial report and disclosure, personal declarations by the Company
    CEO and/or the most senior financial Corporate Office Holder and/or auditing accountant relating the effectiveness of the
    internal audit and disclosure and control processes attached to the period reports and all that is related to the violation
    of legal provisions in their regard.	 	10
	 	 	 	 	 
	31	 	Any
    claim or demand relating to an instance that impacted or may substantially impact Company property, rights, undertakings or
    profitability.	 	10

 

For
the purpose of this addendum, "Company" - including a corporation in its control.

 

 

16

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