Document:

<PAGE>
                                                                     Exhibit 4-1

                                 $1,500,000,000

                            364-DAY CREDIT AGREEMENT

                          dated as of December 12, 2001

                                      among

                               EXELON CORPORATION,

                          COMMONWEALTH EDISON COMPANY,

                               PECO ENERGY COMPANY

                                       and

                         EXELON GENERATION COMPANY, LLC

                                  as Borrowers

                         VARIOUS FINANCIAL INSTITUTIONS

                                   as Lenders

                                  BANK ONE, NA

                             as Administrative Agent

                               ABN AMRO BANK, N.V.

                                       and

                                BARCLAYS BANK PLC

                           as Co-Documentation Agents

                                       and

                                 CITIBANK, N.A.

                                       and

                            FIRST UNION NATIONAL BANK

                            as Co-Syndication Agents

                         BANC ONE CAPITAL MARKETS, INC.

                       Lead Arranger and Sole Book Runner
<PAGE>
                            364-DAY CREDIT AGREEMENT
                          dated as of December 12, 2001

      EXELON CORPORATION, COMMONWEALTH EDISON COMPANY, PECO ENERGY COMPANY,
EXELON GENERATION COMPANY, LLC, the banks listed on the signature pages hereof,
BANK ONE, NA, as Administrative Agent, ABN AMRO BANK, N.V. and BARCLAYS BANK
PLC, as Co-Documentation Agents, and CITIBANK, N.A. and FIRST UNION NATIONAL
BANK, as Co-Syndication Agents hereby agree as follows:

                                   ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

      SECTION 1.01 Certain Defined Terms. As used in this Agreement, each of the
following terms shall have the meaning set forth below (each such meaning to be
equally applicable to both the singular and plural forms of the term defined):

      "Administrative Agent" means Bank One in its capacity as administrative
agent for the Lenders pursuant to Article VII, and not in its individual
capacity as a Lender, and any successor Administrative Agent appointed pursuant
to Section 7.06.

      "Advance" means an advance by a Lender to a Borrower hereunder. An Advance
may be a Base Rate Advance or a Eurodollar Rate Advance, each of which shall be
a "Type" of Advance.

      "Affiliate" means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such
Person or is a director or officer of such Person.

      "Agents" means the Administrative Agent, the Co-Documentation Agents and
the Co-Syndication Agents; and "Agent" means any one of the foregoing.

      "Applicable Lending Office" means, with respect to each Lender, such
Lender's Domestic Lending Office in the case of a Base Rate Advance and such
Lender's Eurodollar Lending Office in the case of a Eurodollar Rate Advance.

      "Applicable Margin" - see Schedule II.

      "Assignment and Acceptance" means an assignment and acceptance entered
into by a Lender and an Eligible Assignee, and accepted by the Administrative
Agent, in substantially the form of Exhibit C hereto.

      "Bank One" means Bank One, NA, a national banking association with its
main office in Chicago, Illinois.

      "Base Rate" means, for any period, a fluctuating interest rate per annum
which rate per annum shall at all times be equal to the higher of:

                                       1
<PAGE>
            (a) the Prime Rate; and

            (b) the sum of 0.5% per annum plus the Federal Funds Rate in effect
            from time to time.

      "Base Rate Advance" means an Advance that bears interest as provided in
Section 2.06(a).

      "Borrowers" means Exelon, ComEd, PECO and Genco; and "Borrower" means any
one of the foregoing.

      "Borrowing" means a group of Advances to the same Borrower of the same
Type made, continued or converted on the same day by the Lenders ratably
according to their Pro Rata Shares and, in the case of a Borrowing of Eurodollar
Rate Advances, having the same Interest Period.

      "Business Day" means a day on which banks are not required or authorized
to close in Philadelphia, Pennsylvania, Chicago, Illinois or New York, New York,
and, if the applicable Business Day relates to any Eurodollar Rate Advances, on
which dealings are carried on in the London interbank market.

      "Closing Date" shall mean the date on which all conditions precedent to
the initial Credit Extension have been satisfied.

      "Code" means the Internal Revenue Code of 1986, and the regulations
promulgated thereunder, in each case as amended, reformed or otherwise modified
from time to time.

      "Co-Documentation Agent" means each of ABN AMRO Bank, N.V. and Barclays
Bank plc in its capacity as a co-documentation agent hereunder.

      "Commitment" means, for any Lender, such Lender's commitment to make
Advances and participate in Facility LCs for the account of each Borrower
hereunder.

      "Commitment Amount" means, for any Lender at any time, the amount set
forth opposite such Lender's name on the signature pages hereof or, if such
Lender has entered into any Assignment and Acceptance, set forth for such Lender
in the Register maintained by the Administrative Agent pursuant to Section
8.07(c), as such amount may be reduced pursuant to Section 2.04.

      "Commitment Termination Date" means, with respect to any Borrower, the
earlier of (i) December 11, 2002 or such later date to which the scheduled
Commitment Termination Date may be extended pursuant to Section 2.17 (or, if any
such date is not a Business Day, the next preceding Business Day) or (ii) the
date of termination in whole of the Commitments to such Borrower pursuant to
Section 2.04 or 6.01.

      "ComEd" means Commonwealth Edison Company, an Illinois corporation, or any
Eligible Successor thereof.

                                       2
<PAGE>
      "ComEd Sublimit" means $300,000,000, subject to adjustment as provided in
Section 2.04(c).

      "ComEd Mortgage" means the Mortgage, dated July 1, 1923, as amended and
supplemented by supplemental indentures, including the Supplemental Indenture,
dated August 1, 1944, from ComEd to Harris Trust and Savings Bank and D.G.
Donovan, as trustees; provided that no effect shall be given to any amendment,
supplement or refinancing after the date of this Agreement that would broaden
the definition of "permitted liens" as defined in the ComEd Mortgage as
constituted on the date of this Agreement.

      "Consolidated Adjusted Total Capitalization" means, for any Borrower, the
sum, without duplication, of the following with respect to such Borrower and its
consolidated Subsidiaries determined on a consolidated basis (exclusive, in each
case, to the extent otherwise included in such item, of (i) Nonrecourse
Indebtedness of any Subsidiary of such Borrower and (ii) the aggregate principal
amount of Transitional Funding Instruments of such Borrower and its consolidated
Subsidiaries): (a) total capitalization as of such date, as determined in
accordance with GAAP without, in the case of PECO, giving effect to the
"Receivable from Parent" recorded as a debit to shareholders' equity on PECO's
books in connection with the corporate restructuring described in Exelon's Form
10-Q filed with the Securities and Exchange Commission on May 15, 2001, (b) the
current portion of liabilities which as of such date would be classified in
whole or part as long-term debt in accordance with GAAP (it being understood
that the noncurrent portion of such liabilities is included in the total
capitalization referred to in clause (a)), (c) all obligations as lessee which,
in accordance with GAAP, are capitalized as liabilities (including the current
portion thereof), and (d) all other liabilities which would be classified as
short-term debt in accordance with GAAP (including, without limitation, all
liabilities of the types classified as "Notes Payable, Bank" on the audited
balance sheets of PECO and Exelon for December 31, 2000).

      "Consolidated Adjusted Total Debt" means, for any Borrower, the sum,
without duplication, of the following with respect to such Borrower and its
consolidated Subsidiaries determined on a consolidated basis (exclusive, in each
case, to the extent otherwise included in such item, of (i) Nonrecourse
Indebtedness of any Subsidiary of such Borrower, (ii) the aggregate principal
amount of Subordinated Deferrable Interest Securities of such Borrower and its
Subsidiaries and (iii) the aggregate principal amount of Transitional Funding
Instruments of such Borrower and its Subsidiaries): (a) all liabilities which as
of such date would be classified in whole or in part as long-term debt in
accordance with GAAP (including the current portion thereof), (b) all
obligations as lessee which, in accordance with GAAP, are capitalized as
liabilities (including the current portion thereof), and (c) all other
liabilities which would be classified as short-term debt in accordance with GAAP
(including, without limitation, all liabilities of the types classified as
"Notes Payable, Bank" on the audited balance sheets of PECO and Exelon for
December 31, 2000).

      "Controlled Group" means all members of a controlled group of corporations
and all trades or businesses (whether or not incorporated) under common control
that, together with Exelon or any Subsidiary, are treated as a single employer
under Section 414(b) or 414(c) of the Code.

                                       3
<PAGE>
      "Co-Syndication Agent" means each of Citibank, N.A. and First Union
National Bank in its capacity as co-syndication agent hereunder.

      "Credit Extension" means the making of an Advance or the issuance or
modification of a Facility LC hereunder.

      "Debt" means (i) indebtedness for borrowed money, (ii) obligations
evidenced by bonds, debentures, notes or other similar instruments (iii)
obligations to pay the deferred purchase price of property or services (other
than trade payables incurred in the ordinary course of business), (iv)
obligations as lessee under leases that shall have been or are required to be,
in accordance with GAAP, recorded as capital leases, (v) obligations (contingent
or otherwise) under reimbursement or similar agreements with respect to the
issuance of letters of credit (other than obligations in respect of documentary
letters of credit opened to provide for the payment of goods or services
purchased in the ordinary course of business) and (vi) obligations under direct
or indirect guaranties in respect of, and obligations (contingent or otherwise)
to purchase or otherwise acquire, or otherwise to assure a creditor against loss
in respect of, indebtedness or obligations of others of the kinds referred to in
clauses (i) through (v) above.

      "Domestic Lending Office" means, with respect to any Lender, the office of
such Lender specified as its "Domestic Lending Office" opposite its name on
Schedule I hereto or in the Assignment and Acceptance pursuant to which it
became a Lender, or such other office of such Lender as such Lender may from
time to time specify to the Borrowers and the Administrative Agent.

      "Eligible Assignee" means (i) a commercial bank organized under the laws
of the United States, or any State thereof; (ii) a commercial bank organized
under the laws of any other country that is a member of the OECD or has
concluded special lending arrangements with the International Monetary Fund
associated with its General Arrangements to Borrow, or a political subdivision
of any such country, provided that such bank is acting through a branch or
agency located in the United States; (iii) a finance company, insurance company
or other financial institution or fund (whether a corporation, partnership or
other entity) engaged generally in making, purchasing or otherwise investing in
commercial loans in the ordinary course of its business; or (iv) the central
bank of any country that is a member of the OECD; provided, however, that,
unless otherwise agreed by Exelon and the Administrative Agent in their sole
discretion, (A) any such Person described in clause (i), (ii) or (iii) above
shall also (x) have outstanding unsecured long-term debt that is rated BBB- or
better by S&P and Baa3 or better by Moody's (or an equivalent rating by another
nationally recognized credit rating agency of similar standing if either such
corporation is no longer in the business of rating unsecured indebtedness of
entities engaged in such businesses) and (y) have combined capital and surplus
(as established in its most recent report of condition to its primary regulator)
of not less than $100,000,000 (or its equivalent in foreign currency), and (B)
any Person described in clause (ii), (iii) or (iv) above shall, on the date on
which it is to become a Lender hereunder, be entitled to receive payments
hereunder without deduction or withholding of any United States Federal income
taxes (as contemplated by Section 2.14(e)).

      "Eligible Successor" means a Person which (i) is a corporation, limited
liability company or business trust duly incorporated or organized, validly
existing and in good standing under the

                                       4
<PAGE>
laws of one of the states of the United States or the District of Columbia, (ii)
as a result of a contemplated acquisition, consolidation or merger, will succeed
to all or substantially all of the consolidated business and assets of a
Borrower and its Subsidiaries, (iii) upon giving effect to such contemplated
acquisition, consolidation or merger, will have all or substantially all of its
consolidated business and assets conducted and located in the United States and
(iv) is acceptable to the Majority Lenders as a credit matter.

      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings issued
thereunder, each as amended and modified from time to time.

      "Eurocurrency Liabilities" has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.

      "Eurodollar Lending Office" means, with respect to any Lender, the office
of such Lender specified as its "Eurodollar Lending Office" opposite its name on
Schedule I hereto or in the Assignment and Acceptance pursuant to which it
became a Lender (or, if no such office is specified, its Domestic Lending
Office), or such other office of such Lender as such Lender may from time to
time specify to the Borrowers and the Administrative Agent.

      "Eurodollar Rate" means, for each Interest Period for each Eurodollar Rate
Advance made as part of a Borrowing, an interest rate per annum equal to the
average (rounded upward to the nearest whole multiple of 1/16 of 1% per annum,
if such average is not such a multiple) of the rates per annum at which deposits
in U.S. dollars are offered by the principal office of each of the Reference
Banks in London, England, to prime banks in the London interbank market at 11:00
A.M. (London time) two Business Days before the first day of such Interest
Period in an amount substantially equal to such Reference Bank's Eurodollar Rate
Advance made as part of such Borrowing and for a period equal to such Interest
Period. The Eurodollar Rate for each Interest Period for each Eurodollar Rate
Advance made as part of a Borrowing shall be determined by the Administrative
Agent on the basis of applicable rates furnished to and received by the
Administrative Agent from the Reference Banks two Business Days before the first
day of such Interest Period, subject, however, to the provisions of Section
2.08.

      "Eurodollar Rate Advance" means any Advance that bears interest as
provided in Section 2.06(b).

      "Eurodollar Rate Reserve Percentage" of any Lender for any Interest Period
means the reserve percentage applicable during such Interest Period (or if more
than one such percentage shall be so applicable, the daily average of such
percentages for those days in such Interest Period during which any such
percentage shall be so applicable) under regulations issued from time to time by
the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without limitation, any
emergency, supplemental or other marginal reserve requirement) for such Lender
with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities having a term equal to such Interest Period.

      "Event of Default" - see Section 6.01.

                                       5
<PAGE>
      "Exchange Act" means the Securities Exchange Act of 1934, as amended and
modified from time to time.

      "Exelon" means Exelon Corporation, a Pennsylvania corporation, or any
Eligible Successor thereof.

      "Exelon Sublimit" means $900,000,000, subject to adjustment as provided in
Section 2.04(c).

      "Existing Agreement" means the 364-Day Credit Agreement dated as of
December 19, 2000 among Exelon, PECO, ComEd, various financial institutions and
Bank One, as Administrative Agent, as amended prior to the Closing Date.

      "Facility Fee Rate" - see Schedule II.

      "Facility LC" is defined in Section 2.16.1. "Facility LC Application" is
defined in Section 2.16.3.

      "Federal Funds Rate" means, for any period, a fluctuating interest rate
per annum equal for each day during such period to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day which is a Business Day, the average of the quotations for such day on such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

      "Final Termination Date" means, with respect to any Borrower, the earlier
of (i) the date on or after the Commitment Termination Date for such Borrower on
which all of such Borrower's obligations hereunder have been paid in full and
all Facility LC's issued for the account of such Borrower have expired or been
terminated and (ii) the date on which all of such Borrower's obligations
hereunder have become due and payable (pursuant to Section 6.01 or otherwise).

      "GAAP" - see Section 1.03.

      "Genco" means Exelon Generation Company, LLC, a Pennsylvania limited
liability company, or any Eligible Successor thereof.

      "Genco Sublimit" means zero, subject to adjustment as provided in Section
2.04(c); provided that the Genco Sublimit may not be increased prior to the date
on which the conditions precedent to the initial Advance to Genco set forth in
Section 3.03 have been satisfied.

      "Granting Bank" - see Section 8.07(h).

      "Interest Period" means, for each Eurodollar Rate Advance, the period
commencing on the date of such Eurodollar Rate Advance is made or is converted
from a Base Rate Advance and

                                       6
<PAGE>
ending on the last day of the period selected by the applicable Borrower
pursuant to the provisions below and, thereafter, each subsequent period
commencing on the last day of the immediately preceding Interest Period and
ending on the last day of the period selected by such Borrower pursuant to the
provisions below. The duration of each such Interest Period shall be 1, 2, 3 or
6 months, as the applicable Borrower may select in accordance with Section 2.02
or 2.09; provided that:

                  (i) no Borrower may select any Interest Period that ends after
            the scheduled Commitment Termination Date;

                  (ii) Interest Periods commencing on the same date for Advances
            made as part of the same Borrowing shall be of the same duration;

                  (iii) whenever the last day of any Interest Period would
            otherwise occur on a day other than a Business Day, the last day of
            such Interest Period shall be extended to occur on the next
            succeeding Business Day, unless such extension would cause the last
            day of such Interest Period to occur in the next following calendar
            month, in which case the last day of such Interest Period shall
            occur on the next preceding Business Day; and

                  (iv) if there is no day in the appropriate calendar month at
            the end of such Interest Period numerically corresponding to the
            first day of such Interest Period, then such Interest Period shall
            end on the last Business Day of such appropriate calendar month.

      "LC Fee Rate" - see Schedule II.

      "LC Issuer" means Bank One in its capacity as issuer of Facility LCs
hereunder.

      "LC Obligations" means, with respect to any Borrower at any time, the sum,
without duplication, of (i) the aggregate undrawn stated amount under all
Facility LCs issued for the account of such Borrower outstanding at such time
plus (ii) the aggregate unpaid amount at such time of all Reimbursement
Obligations of such Borrower.

      "LC Payment Date" is defined in Section 2.16.5.

      "Lead Arranger" means Banc One Capital Markets in its capacity as Lead
Arranger and Sole Book Runner.

      "Lenders" means each of the financial institutions listed on the signature
pages hereof and each Eligible Assignee that shall become a party hereto
pursuant to Section 8.07.

      "Letter of Credit Sublimit" means $100,000,000.

      "Lien" means any lien (statutory or other), mortgage, pledge, security
interest or other charge or encumbrance, or any other type of preferential
arrangement (including, without limitation, the interest of a vendor or lessor
under any conditional sale, capitalized lease or other title retention
agreement).

                                       7
<PAGE>
      "Leverage Ratio" means, for any Borrower, the ratio of such Borrower's
Consolidated Adjusted Total Debt to such Borrower's Consolidated Adjusted Total
Capitalization.

      "Majority Lenders" means Lenders having Pro Rata Shares of more than 50%
(provided that, for purposes of this definition, no Borrower nor any Affiliate
of a Borrower, if a Lender, shall be included in calculating the amount of any
Lender's Pro Rata Share or the amount of the Commitment Amounts or Outstanding
Credit Extensions, as applicable, required to constitute more than 50% of the
Pro Rata Shares).

      "Material Adverse Change" and "Material Adverse Effect" each means,
relative to any occurrence, fact or circumstances of whatsoever nature
(including, without limitation, any determination in any litigation, arbitration
or governmental investigation or proceeding) with respect to any Borrower, (i)
any materially adverse change in, or materially adverse effect on, the financial
condition, operations, assets or business of such Borrower and its consolidated
Subsidiaries, taken as a whole, or (ii) any materially adverse effect on the
validity or enforceability against such Borrower of this Agreement or any
applicable Note.

      "Material Subsidiary" means, with respect to Exelon, each of ComEd, PECO
and Genco and any holding company for any of the foregoing.

      "Modify" and "Modification" are defined in Section 2.16.1.

      "Moody's" means Moody's Investors Service, Inc.

      "Moody's Rating" means, at any time for any Borrower, the rating issued by
Moody's and then in effect with respect to such Borrower's senior unsecured
long-term public debt securities without third-party credit enhancement (it
being understood that if such Borrower does not have any outstanding debt
securities of the type described above but has an indicative rating from Moody's
for debt securities of such type, then such indicative rating shall be used for
determining the "Moody's Rating").

      "Multiemployer Plan" means a Plan maintained pursuant to a collective
bargaining agreement or any other arrangement to which Exelon or any other
member of the Controlled Group is a party to which more than one employer is
obligated to make contributions.

      "Nonrecourse Indebtedness" means any Debt that finances the acquisition,
development, ownership or operation of an asset in respect of which the Person
to which such Debt is owed has no recourse whatsoever to any Borrower or any of
their respective Affiliates other than:

                  (i) recourse to the named obligor with respect to such Debt
            (the "Debtor") for amounts limited to the cash flow or net cash flow
            (other than historic cash flow) from the asset;

                  (ii) recourse to the Debtor for the purpose only of enabling
            amounts to be claimed in respect of such Debt in an enforcement of
            any security interest or lien given by the Debtor over the asset or
            the income, cash flow or other proceeds deriving from the asset (or
            given by any shareholder or the like in the Debtor over its shares
            or like interest in the capital of the Debtor) to secure the Debt,
            but only

                                       8
<PAGE>
            if the extent of the recourse to the Debtor is limited solely to the
            amount of any recoveries made on any such enforcement; and

                  (iii) recourse to the Debtor generally or indirectly to any
            Affiliate of the Debtor, under any form of assurance, undertaking or
            support, which recourse is limited to a claim for damages (other
            than liquidated damages and damages required to be calculated in a
            specified way) for a breach of an obligation (other than a payment
            obligation or an obligation to comply or to procure compliance by
            another with any financial ratios or other tests of financial
            condition) by the Person against which such recourse is available.

      "Note" means a promissory note of a Borrower payable to the order of a
Lender, in substantially the form of Exhibit A hereto, evidencing the aggregate
indebtedness of such Borrower to such Lender resulting from the Advances made by
such Lender to such Borrower.

      "Notice of Borrowing" - see Section 2.02(a).

      "OECD" means the Organization for Economic Cooperation and Development.

      "Outstanding Credit Extensions" means, with respect to any Borrower, the
sum of the aggregate principal amount of all outstanding Advances to such
Borrower plus all LC Obligations of such Borrower.

      "PBGC" means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.

      "PECO" means PECO Energy Company, a Pennsylvania corporation, or any
Eligible Successor thereof.

      "PECO Mortgage" means the First and Refunding Mortgage, dated as of May 1,
1923, between The Counties Gas & Electric Company (to which PECO is successor)
and Fidelity Trust Company, Trustee (to which First Union National Bank is
successor), as amended, supplemented or refinanced from time to time, provided
that no effect shall be given to any amendment, supplement or refinancing after
the date of this Agreement that would broaden the definition of "excepted
encumbrances" as defined in the PECO Mortgage as constituted on the date of this
Agreement.

      "PECO Sublimit" means $300,000,000, subject to adjustment as provided in
Section 2.04(c).

      "Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association, joint
venture, limited liability company or other entity, or a government or any
political subdivision or agency thereof.

      "Plan" means an employee pension benefit plan that is covered by Title IV
of ERISA or subject to the minimum funding standards under Section 412 of the
Code as to which Exelon or any other member of the Controlled Group may have any
liability.

                                       9
<PAGE>
      "Prime Rate" means a rate per annum equal to the prime rate of interest
announced by Bank One or by its parent, BANK ONE CORPORATION (which is not
necessarily the lowest rate charged to any customer), changing when and as said
prime rate changes.

      "Principal Subsidiary" means, with respect to a Borrower, (i) each Utility
Subsidiary of such Borrower (other than Commonwealth Edison Company of Indiana,
Inc., so long as it does not qualify as a Principal Subsidiary under the
following clause (ii)) and (ii) each other Subsidiary of such Borrower the
assets of which exceeded $150,000,000 in book value at any time during the
preceding 24-month period.

      "Pro Rata Share" means, with respect to a Lender, a portion equal to a
fraction the numerator of which is such Lender's Commitment Amount (plus, after
the Commitments have terminated with respect to any Borrower, the principal
amount of such Lender's outstanding Advances to such Borrower plus the amount of
such Lender's participation in all of such Borrower's LC Obligations) and the
denominator of which is the aggregate amount of the Commitment Amounts (plus,
after the Commitments have terminated with respect to any Borrower, the
principal amount of all outstanding Advances to such Borrower plus all LC
Obligations of such Borrower).

      "Reference Banks" means Bank One, Citibank, N.A. and First Union National
Bank.

      "Register" - see Section 8.07(c).

      "Reimbursement Obligations" means, with respect to any Borrower at any
time, the aggregate of all obligations of such Borrower then outstanding under
Section 2.16 to reimburse the LC Issuer for amounts paid by the LC Issuer in
respect of any one or more drawings under Facility LCs.

      "Reportable Event" means a reportable event as defined in Section 4043 of
ERISA and regulations issued under such section with respect to a Plan,
excluding, however, such events as to which the PBGC by regulation waived the
requirement of Section 4043(a) of ERISA that it be notified within 30 days of
the occurrence of such event, provided that a failure to meet the minimum
funding standard of Section 412 of the Code and Section 302 of ERISA shall be a
Reportable Event regardless of the issuance of any such waivers in accordance
with either Section 4043(a) of ERISA or Section 412(d) of the Code.

      "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc.

      "S&P Rating" means, at any time for any Borrower, the rating issued by S&P
and then in effect with respect to such Borrower's senior unsecured long-term
public debt securities without third-party credit enhancement (it being
understood that if such Borrower does not have any outstanding debt securities
of the type described above but has an indicative rating from S&P for debt
securities of such type, then such indicative rating shall be used for
determining the "S&P Rating").

      "Single Employer Plan" means a Plan maintained by Exelon or any other
member of the Controlled Group for employees of Exelon or any other member of
the Controlled Group.

                                       10
<PAGE>
      "SPC" - see Section 8.07(h).

      "Special Purpose Subsidiary" means a direct or indirect wholly owned
Subsidiary of ComEd or PECO, substantially all of the assets of which are
"intangible transition property" (as defined in Section 18-102 of the Illinois
Public Utilities Law, as amended, or in 66 Pa. Cons. Stat. Ann. ss.2812(g) (West
Supp. 1997) or any successor provision of similar import), and proceeds thereof,
formed solely for the purpose of holding such assets and issuing such
Transitional Funding Instruments, and which complies with the requirements
customarily imposed on bankruptcy-remote corporations in receivables
securitizations.

      "Sublimit" means the Exelon Sublimit, the ComEd Sublimit, the PECO
Sublimit or the Genco Sublimit.

      "Subordinated Deferrable Interest Securities" means, with respect to any
Borrower, all obligations of such Borrower and its Subsidiaries, as set forth
from time to time in the consolidated balance sheets of such Borrower and its
Subsidiaries delivered pursuant to Section 5.01(b) hereof, in respect of
"Company Obligated Mandatorily Redeemable Preferred Securities of Subsidiary
Trusts holding solely the Company's Subordinated Debt Securities" or
"Company-Obligated Mandatorily Redeemable Preferred Securities of a Partnership,
which holds solely Subordinated Debentures of the Company."

      "Subsidiary" means, with respect to any Person, any corporation or
unincorporated entity of which more than 50% of the outstanding capital stock
(or comparable interest) having ordinary voting power (irrespective of whether
or not at the time capital stock, or comparable interests, of any other class or
classes of such corporation or entity shall or might have voting power upon the
occurrence of any contingency) is at the time directly or indirectly owned by
such Person (whether directly or through one or more other Subsidiaries).

      "Taxes" - see Section 2.14.

      "Transitional Funding Instrument" means any instruments, pass-through
certificates, notes, debentures, certificates of participation, bonds,
certificates of beneficial interest or other evidences of indebtedness or
instruments evidencing a beneficial interest which (i) in the case of ComEd (A)
are issued pursuant to a "transitional funding order" (as such term is defined
in Section 18-102 of the Illinois Public Utilities Act, as amended) issued by
the Illinois Commerce Commission at the request of an electric utility and (B)
are secured by or otherwise payable from non-bypassable cent per kilowatt hour
charges authorized pursuant to such order to be applied and invoiced to
customers of such utility and (ii) in the case of PECO, are "transition bonds"
(as defined in 66 Pa. Cons. Stat. Ann. ss.2812(g) (West Supp. 1997), or any
successor provision of similar import), representing a securitization of
"intangible transition property" (as defined in the foregoing statute). The
instrument funding charges so applied and invoiced must be deducted and stated
separately from the other charges invoiced by such utility against its
customers.

      "Type" - see the definition of Advance.

      "Unfunded Liabilities" means, (i) in the case of any Single Employer Plan,
the amount (if any) by which the present value of all vested nonforfeitable
benefits under such Plan exceeds the fair market value of all Plan assets
allocable to such benefits, all determined as of the then most

                                       11
<PAGE>
recent evaluation date for such Plan, and (ii) in the case of any Multiemployer
Plan, the withdrawal liability that would be incurred by the Controlled Group if
all members of the Controlled Group completely withdrew from such Multiemployer
Plan.

      "Unmatured Event of Default" means any event which (if it continues
uncured) will, with lapse of time or notice or both, became an Event of Default.

      "Utility Subsidiary" means, with respect to a Borrower, each Subsidiary of
such Borrower that is engaged principally in the generation, transmission, or
distribution of electricity or gas and is subject to rate regulation as a public
utility by federal or state regulatory authorities.

      "Utilization Fee Rate" - see Schedule II.

      SECTION 1.02 Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
means "to but excluding".

      SECTION 1.03 Accounting Principles. (a) As used in this Agreement, "GAAP"
shall mean generally accepted accounting principles in the United States,
applied on a basis consistent with the principles used in preparing Exelon's
audited consolidated financial statements as of December 31, 2000 and for the
fiscal year then ended. In this Agreement, except to the extent, if any,
otherwise provided herein, all accounting and financial terms shall have the
meanings ascribed to such terms by GAAP, and all computations and determinations
as to accounting and financial matters shall be made in accordance with GAAP. In
the event that the financial statements generally prepared by any Borrower apply
accounting principles other than GAAP (including as a result of any event
described in Section 1.03(b)), the compliance certificate delivered pursuant to
Section 5.01(b)(iv) accompanying such financial statements shall include
information in reasonable detail reconciling such financial statements to GAAP
to the extent relevant to the calculations set forth in such compliance
certificate.

            (b) If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth herein and the applicable
Borrower or the Majority Lenders shall so request, the Administrative Agent, the
Lenders and such Borrower shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Majority Lenders); provided that, until so
amended, such ratio or requirement shall continue to be computed in accordance
with GAAP prior to such change therein.

      SECTION 1.04 Section References. Unless indicated otherwise, any section
reference herein refers to a section of this Agreement.

                                   ARTICLE II

                      AMOUNTS AND TERMS OF THE COMMITMENTS

      SECTION 2.01 Commitments. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to (a) make Advances to any Borrower and (b)
to participate in Facility LCs issued upon the request of any Borrower, in each
case from time to time during the

                                       12
<PAGE>
period from the date hereof to the Commitment Termination Date for such
Borrower, in an aggregate amount not to exceed such Lender's Commitment Amount
as in effect from time to time; provided that (i) the aggregate principal amount
of all Advances by such Lender to any Borrower shall not exceed such Lender's
Pro Rata Share of the aggregate principal amount of all Advances to such
Borrower; (ii) such Lender's participation in Facility LCs issued for the
account of any Borrower shall not exceed such Lender's Pro Rata Share of all LC
Obligations of such Borrower; (iii) the Outstanding Credit Extensions to Exelon
shall not at any time exceed the Exelon Sublimit; (iv) the Outstanding Credit
Extensions to ComEd shall not any time exceed the ComEd Sublimit; (v) the
Outstanding Credit Extensions to PECO shall not at any time exceed the PECO
Sublimit; (vi) the Outstanding Credit Extensions to Genco shall not at any time
exceed the Genco Sublimit; and (vii) the LC Obligations of all Borrowers
collectively shall not at any time exceed the Letter of Credit Sublimit. Within
the foregoing limits, each Borrower may from time to time borrow, prepay
pursuant to Section 2.10 and reborrow hereunder prior to the Commitment
Termination Date for such Borrower.

      SECTION 2.02 Procedures for Advances; Limitations on Borrowings.

            (a) Any Borrower may request Advances hereunder by giving notice (a
"Notice of Borrowing") to the Administrative Agent (which shall promptly advise
each Lender of its receipt thereof) not later than 10:00 A.M. (Chicago time) on
the third Business Day prior to the date of any proposed borrowing of Eurodollar
Rate Advances and on the date of any proposed borrowing of Base Rate Advances.
Each Notice of Borrowing shall be sent by telecopier, confirmed immediately in
writing, and shall be in substantially the form of Exhibit B hereto, specifying
therein the Borrower which is requesting Advances and the requested (i) date of
borrowing (which shall be a Business Day), (ii) Type of Advances to be borrowed,
(iii) the aggregate amount of such Advances, and (iv) in the case of a borrowing
of Eurodollar Rate Advances, the initial Interest Period therefor. Each Lender
shall, before 12:00 noon (Chicago time) on the date of such borrowing, make
available for the account of its Applicable Lending Office to the Administrative
Agent at its address referred to in Section 8.02, in same day funds, such
Lender's ratable portion of the requested borrowing. After the Administrative
Agent's receipt of such funds and upon fulfillment of the applicable conditions
set forth in Article III, the Administrative Agent will make such funds
available to the applicable Borrower at the Administrative Agent's aforesaid
address.

            (b) Each Notice of Borrowing shall be irrevocable and binding on the
applicable Borrower. If a Notice of Borrowing requests Eurodollar Rate Advances,
the applicable Borrower shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to fulfill on or
before the requested borrowing date the applicable conditions set forth in
Article III, including, without limitation, any loss, cost or expense incurred
by reason of the liquidation or reemployment of deposits or other funds acquired
by such Lender to fund the requested Advance to be made by such Lender.

            (c) Unless the Administrative Agent shall have received notice from
a Lender prior to the date of any requested borrowing that such Lender will not
make available to the Administrative Agent such Lender's ratable portion of such
borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the requested borrowing date in
accordance with subsection (a) of this Section 2.02 and the

                                       13
<PAGE>
Administrative Agent may, in reliance upon such assumption, make available to
the applicable Borrower on such date a corresponding amount. If and to the
extent that such Lender shall not have so made such ratable portion available to
the Administrative Agent, such Lender and such Borrower severally agree to repay
to the Administrative Agent forthwith on demand such corresponding amount
together with interest thereon, for each day from the date such amount is made
available to such Borrower until the date such amount is repaid to the
Administrative Agent, at (i) in the case of such Borrower, the interest rate
applicable at the time to Advances made in connection with such borrowing and
(ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall
repay to the Administrative Agent such corresponding amount, such amount so
repaid shall constitute such Lender's Advance as part of such Borrowing for
purposes of this Agreement.

            (d) The failure of any Lender to make the Advance to be made by it
on any borrowing date shall not relieve any other Lender of its obligation, if
any, hereunder to make its Advance on such date, but no Lender shall be
responsible for the failure of any other Lender to make any Advance to be made
by such other Lender.

            (e) Each Borrowing of Base Rate Advances shall at all times be in an
aggregate amount not less than $5,000,000; and each Borrowing of Eurodollar Rate
Advances shall at all times be in an aggregate amount not less than $10,000,000.
Notwithstanding anything to the contrary contained herein, the Borrowers
collectively may not have more than 25 Borrowings of Eurodollar Rate Advances
outstanding at any time.

      SECTION 2.03 Facility and Utilization Fees.

            (a) Each Borrower agrees to pay to the Administrative Agent, for the
account of the Lenders according to their Pro Rata Shares, a facility fee for
the period from the Closing Date to the Commitment Termination Date for such
Borrower (or, if later, the date on which all Outstanding Credit Extensions to
such Borrower have been paid in full) in an amount equal to the Facility Fee
Rate for such Borrower multiplied by such Borrower's Sublimit (or, after the
Commitment Termination Date, the principal amount of all Outstanding Credit
Extensions to such Borrower), payable on the last day of each March, June,
September and December and on the Final Termination Date for such Borrower (and,
if applicable, thereafter on demand).

            (b) Utilization Fee. Each Borrower agrees to pay to the
Administrative Agent, for the account of the Lenders according to their Pro Rata
Shares, a utilization fee for each day on which either (i) the Outstanding
Credit Extensions to all Borrowers exceed 33-1/3% of the aggregate amount of the
Commitment Amounts or (ii) such Borrower's Outstanding Credit Extensions exceed
33-1/3% of such Borrower's Sublimit, in each case in an amount equal to the
Utilization Fee Rate for such Borrower multiplied by such Borrower's Outstanding
Credit Extensions on such day, payable on the last day of each March, June,
September and December and on the Commitment Termination Date for such Borrower.

      SECTION 2.04 Reduction of Commitment Amounts; Adjustment of Sublimits. (a)
Each Borrower shall have the right, upon at least two Business Days' notice to
the Administrative Agent, to ratably reduce the respective Commitment Amounts of
the Lenders in accordance with their Pro Rata Shares; provided that no Borrower
may reduce the Commitment Amounts by an

                                       14
<PAGE>
amount that is greater than the remainder of the amount of such Borrower's
Sublimit minus the Outstanding Credit Extensions to such Borrower; and provided,
further, that each partial reduction of the Commitment Amounts shall be in the
aggregate amount of $10,000,000 or an integral multiple thereof. Once reduced
pursuant to this Section 2.04, the Commitment Amounts may not be increased.

            (b) Any Borrower shall have the right at any time such Borrower's
Sublimit has been reduced to zero, upon at least two Business Days' notice to
the Administrative Agent, to terminate the Commitment of each Lender with
respect to such Borrower in its entirety (but only if such Borrower concurrently
pays all of its obligations hereunder). Upon any such termination, such Borrower
shall cease to be a party hereto and shall no longer have any rights or
obligations hereunder (except under provisions hereof which by their terms would
survive any termination hereof).

            (c) The Borrowers may from time to time so long as no Event of
Default or Unmatured Event of Default exists with respect to any Borrower, upon
not less than five Business Days' notice to the Administrative Agent (which
shall promptly notify each Lender), change their respective Sublimits; provided
that (i) the sum of the Sublimits shall at all times be equal to the aggregate
amount of the Commitment Amounts; and (ii) after giving effect to any adjustment
of the Sublimits, (A) each Sublimit shall be an integral multiple of $50,000,000
(except that one Sublimit may not be such an integral multiple if the aggregate
amount of the Commitment Amounts is not an integral multiple of $50,000,000);
(B) no Sublimit shall exceed $1,000,000,000; (C) the Outstanding Credit
Extensions to Exelon shall not exceed the Exelon Sublimit; (D) the Outstanding
Credit Extensions to ComEd shall not exceed the ComEd Sublimit; (E) the
Outstanding Credit Extensions to Genco shall not exceed the Genco Sublimit and
(F) the Outstanding Credit Extensions to PECO shall not exceed the PECO
Sublimit.

      SECTION 2.05 Repayment of Advances. Each Borrower shall repay the
principal amount of all Advances made to it on or before the Commitment
Termination Date for such Borrower.

      SECTION 2.06 Interest on Advances. Each Borrower shall pay interest on the
unpaid principal amount of each Advance made to it from the date of such Advance
until such principal amount shall be paid in full, at the following rates per
annum:

            (a) At all times such Advance is a Base Rate Advance, a rate per
annum equal to the Base Rate in effect from time to time, payable quarterly on
the last day of each March, June, September and December and on the date such
Base Rate Advance is converted to a Eurodollar Rate Advance or paid in full.

            (b) Subject to Section 2.07, at all times such Advance is a
Eurodollar Rate Advance, a rate per annum equal to the sum of the Eurodollar
Rate for each applicable Interest Period plus the Applicable Margin in effect
from time to time for such Borrower, payable on the last day of each Interest
Period for such Eurodollar Rate Advance (and, if any Interest Period for such
Advance is six months, on the day that is three months after the first day of
such Interest Period) or, if earlier, on the date such Eurodollar Rate Advance
is converted to a Base Rate Advance or paid in full.

                                       15
<PAGE>
      SECTION 2.07 Additional Interest on Eurodollar Advances. Each Borrower
shall pay to each Lender, so long as such Lender shall be required under
regulations of the Board of Governors of the Federal Reserve System to maintain
reserves with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities, additional interest on the unpaid principal amount of
each Eurodollar Rate Advance of such Lender made to such Borrower, from the date
of such Advance until such principal amount is paid in full or converted to a
Base Rate Advance, at an interest rate per annum equal to the remainder obtained
by subtracting (i) the Eurodollar Rate for each Interest Period for such Advance
from (ii) the rate obtained by dividing such Eurodollar Rate by a percentage
equal to 100% minus the Eurodollar Rate Reserve Percentage of such Lender for
such Interest Period, payable on each date on which interest is payable on such
Advance; provided that no Lender shall be entitled to demand such additional
interest more than 90 days following the last day of the Interest Period in
respect of which such demand is made; provided further, however, that the
foregoing proviso shall in no way limit the right of any Lender to demand or
receive such additional interest to the extent that such additional interest
relates to the retroactive application of the reserve requirements described
above if such demand is made within 90 days after the implementation of such
retroactive reserve requirements. Such additional interest shall be determined
by the applicable Lender and notified to the applicable Borrower through the
Administrative Agent, and such determination shall be conclusive and binding for
all purposes, absent manifest error.

      SECTION 2.08 Interest Rate Determination. (a) Each Reference Bank agrees
to furnish to the Administrative Agent timely information for the purpose of
determining each Eurodollar Rate. If any one of the Reference Banks shall not
furnish such timely information to the Administrative Agent for the purpose of
determining any such interest rate, the Administrative Agent shall determine
such interest rate on the basis of timely information furnished by the remaining
Reference Banks.

            (b) The Administrative Agent shall give prompt notice to the
applicable Borrower and the Lenders of each applicable interest rate determined
by the Administrative Agent for purposes of Section 2.06(a) or (b), and the
applicable rate, if any, furnished by each Reference Bank for the purpose of
determining each applicable interest rate under Section 2.06(b).

            (c) If all of the Reference Banks fail to furnish timely information
to the Administrative Agent for determining the Eurodollar Rate for any
Eurodollar Rate Advances,

                  (i) the Administrative Agent shall forthwith notify the
            applicable Borrower and the Lenders that the interest rate cannot be
            determined for such Eurodollar Rate Advances,

                  (ii) each such Advance will automatically, on the last day of
            the then existing Interest Period therefor, convert into a Base Rate
            Advance (or if such Advance is then a Base Rate Advance, will
            continue as a Base Rate Advance), and

                  (iii) the obligation of the Lenders to make, continue or
            convert into Eurodollar Rate Advances shall be suspended until the
            Administrative Agent shall

                                       16
<PAGE>
            notify the applicable Borrower and the Lenders that the
            circumstances causing such suspension no longer exist.

            (d) If, with respect to any Eurodollar Rate Advances, the Majority
Lenders notify the Administrative Agent that the Eurodollar Rate for any
Interest Period for such Advances will not adequately reflect the cost to such
Majority Lenders of making, funding or maintaining their respective Eurodollar
Rate Advances for such Interest Period, the Administrative Agent shall forthwith
so notify the applicable Borrower and the Lenders, whereupon

                  (i) each Eurodollar Rate Advance will automatically, on the
            last day of the then existing Interest Period therefor (unless
            prepaid or converted to a Base Rate Advance prior to such day),
            convert into a Base Rate Advance, and

                  (ii) the obligation of the Lenders to make, continue or
            convert into Eurodollar Rate Advances shall be suspended until the
            Administrative Agent shall notify the applicable Borrower and the
            Lenders that the circumstances causing such suspension no longer
            exist.

      SECTION 2.09 Continuation and Conversion of Advances. (a) Any Borrower may
on any Business Day, upon notice given to the Administrative Agent not later
than 10:00 A.M. (Chicago time) on the third Business Day prior to the date of
any proposed continuation of or conversion into Eurodollar Rate Advances, and on
the date of any proposed conversion into Base Rate Advances, and subject to the
provisions of Sections 2.08 and 2.12, continue Eurodollar Rate Advances for a
new Interest Period or convert a Borrowing of Advances of one Type into Advances
of the other Type; provided, that any continuation of Eurodollar Rate Advances
or conversion of Eurodollar Rate Advances into Base Rate Advances shall be made
on, and only on, the last day of an Interest Period for such Eurodollar Rate
Advances, unless, in the case of such a conversion, such Borrower shall also
reimburse the Lenders pursuant to Section 8.04(b) on the date of such
conversion. Each such notice of a continuation or conversion shall, within the
restrictions specified above, specify (i) the date of such continuation or
conversion, (ii) the Advances to be continued or converted, and (iii) in the
case of continuation of or conversion into Eurodollar Rate Advances, the
duration of the Interest Period for such Advances.

            (b) If a Borrower shall fail to select the Type of any Advance or
the duration of any Interest Period for any Borrowing of Eurodollar Rate
Advances in accordance with the provisions contained in the definition of
"Interest Period" in Section 1.01 and Section 2.09(a), the Administrative Agent
will forthwith so notify such Borrower and the Lenders and such Advances will
automatically, on the last day of the then existing Interest Period therefor,
convert into Base Rate Advances.

      SECTION 2.10 Prepayments. Any Borrower may, upon notice to the
Administrative Agent at least three Business Days prior to any prepayment of
Eurodollar Rate Advances, or one Business Day's notice prior to any prepayment
of Base Rate Advances, in each case stating the proposed date and aggregate
principal amount of the prepayment, and if such notice is given that Borrower
shall, prepay the outstanding principal amounts of the Advances made as part of
the same Borrowing in whole or ratably in part, together with accrued interest
to the date of such prepayment on the principal amount prepaid; provided that
(i) each partial prepayment shall be in

                                       17
<PAGE>
an aggregate principal amount not less than $10,000,000 or a higher integral
multiple of $1,000,000 in the case of any prepayment of Eurodollar Rate Advances
and $5,000,000 or a higher integral multiple of $1,000,000 in the case of any
prepayment of Base Rate Advances, and (ii) in the case of any such prepayment of
a Eurodollar Rate Advance, such Borrower shall be obligated to reimburse the
Lenders pursuant to Section 8.04(b) on the date of such prepayment.

      SECTION 2.11 Increased Costs. (a) If on or after the date of this
Agreement, any Lender or the LC Issuer determines that (i) the introduction of
or any change (other than, in the case of Eurodollar Rate Advances, any change
by way of imposition or increase of reserve requirements, included in the
Eurodollar Rate Reserve Percentage) in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any central
bank or other governmental authority (whether or not having the force of law)
shall increase the cost to such Lender or the LC Issuer, as the case may be, of
agreeing to make or making, funding or maintaining Eurodollar Rate Advances or
of issuing or participating in any Facility LC, then the applicable Borrower
shall from time to time, upon demand by such Lender (with a copy of such demand
to the Administrative Agent) or the LC Issuer, as applicable, pay to the
Administrative Agent for the account of such Lender additional amounts (without
duplication of any amount payable pursuant to Section 2.14) sufficient to
compensate such Lender or the LC Issuer, as applicable, for such increased cost;
provided that no Lender shall be entitled to demand such compensation more than
90 days following the last day of the Interest Period in respect of which such
demand is made and the LC Issuer shall not be entitled to demand such
compensation more than 90 days following the expiration or termination (by a
drawing or otherwise) of the Facility LC in respect of which such demand is
made; provided further, however, that the foregoing proviso shall in no way
limit the right of any Lender or the LC Issuer to demand or receive such
compensation to the extent that such compensation relates to the retroactive
application of any law, regulation, guideline or request described in clause (i)
or (ii) above if such demand is made within 90 days after the implementation of
such retroactive law, interpretation, guideline or request. A certificate as to
the amount of such increased cost, submitted to the applicable Borrower and the
Administrative Agent by a Lender or the LC Issuer, shall be conclusive and
binding for all purposes, absent manifest error.

            (b) If any Lender or the LC Issuer determines that, after the date
of this Agreement, compliance with any law or regulation or any guideline or
request from any central bank or other governmental authority (whether or not
having the force of law) regarding capital adequacy requirements affects or
would affect the amount of capital required or expected to be maintained by such
Lender or the LC Issuer or any Person controlling such Lender or the LC Issuer
(including, in any event, any determination after the date of this Agreement by
any such governmental authority or central bank that, for purposes of capital
adequacy requirements, any Lender's Commitment to a Borrower or the LC Issuer's
commitment to issue Facility LCs for the account of such Borrower as the case
may be does not constitute a commitment with an original maturity of less than
one year) and that the amount of such capital is increased by or based upon the
existence of such Lender's Commitment to such Borrower or the LC Issuer's
commitment to issue Facility LCs for the account of such Borrower, as
applicable, or the Advances made by such Lender to such Borrower or
Reimbursement Obligations owed to the LC Issuer by such Borrower, as the case
may be, then, upon demand by such Lender (with a copy of such demand to the
Administrative Agent) or the LC Issuer, as applicable, such Borrower shall
immediately pay to the Administrative Agent for the account of such Lender or LC
Issuer, as

                                       18
<PAGE>
applicable, from time to time as specified by such Lender or the LC Issuer, as
applicable, additional amounts sufficient to compensate such Lender, the LC
Issuer or such controlling Person, as applicable, in the light of such
circumstances, to the extent that such Lender determines such increase in
capital to be allocable to the existence of such Lender's Commitment to such
Borrower or the Advances made by such Lender to such Borrower or the LC Issuer
determines such increase in capital to be allocable to the LC Issuer's
commitment to issue Facility LCs for the account of such Borrower or the
Reimbursement Obligations owed by such Borrower to the LC Issuer; provided that
no Lender or the LC Issuer shall be entitled to demand such compensation more
than one year following the payment to or for the account of such Lender of all
other amounts payable hereunder by such Borrower and under any Note of such
Borrower held by such Lender and the termination of such Lender's Commitment to
such Borrower and the LC Issuer shall not be entitled to demand such
compensation more than one year after the expiration or termination (by drawing
or otherwise) of all Facility LCs issued for the account of such Borrower and
the termination of the LC Issuer's commitment to issue Facility LCs for the
account of such Borrower; provided further, however, that the foregoing proviso
shall in no way limit the right of any Lender or the LC Issuer to demand or
receive such compensation to the extent that such compensation relates to the
retroactive application of any law, regulation, guideline or request described
above if such demand is made within one year after the implementation of such
retroactive law, interpretation, guideline or request. A certificate as to such
amounts submitted to the applicable Borrower and the Administrative Agent by the
applicable Lender or the LC Issuer shall be conclusive and binding, for all
purposes, absent manifest error.

            (c) Any Lender claiming compensation pursuant to this Section 2.11
shall use its best efforts (consistent with its internal policy and legal and
regulatory restrictions) to change the jurisdiction of its Applicable Lending
Office if the making of such a change would avoid the need for, or reduce the
amount of, any such compensation that may thereafter accrue and would not, in
the reasonable judgment of such Lender, be otherwise disadvantageous to such
Lender.

      SECTION 2.12 Illegality. Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Administrative Agent that the
introduction of or any change in or in the interpretation of any law or
regulation makes it unlawful, or any central bank or other governmental
authority asserts that it is unlawful, for such Lender or its Eurodollar Lending
Office to perform its obligations hereunder to make Eurodollar Rate Advances or
to fund or maintain Eurodollar Rate Advances hereunder, (i) the obligation of
such Lender to make, continue or convert Advances into Eurodollar Rate Advances
shall be suspended (subject to the following paragraph of this Section 2.12)
until the Administrative Agent shall notify the applicable Borrower and the
Lenders that the circumstances causing such suspension no longer exist and (ii)
all Eurodollar Rate Advances of such Lender then outstanding shall, on the last
day of the then applicable Interest Period (or such earlier date as such Lender
shall designate upon not less than five Business Days' prior written notice to
the Administrative Agent), be automatically converted into Base Rate Advances.

      If the obligation of any Lender to make, continue or convert into
Eurodollar Rate Advances has been suspended pursuant to the preceding paragraph,
then, unless and until the Administrative Agent shall notify the applicable
Borrower and the Lenders that the circumstances causing such suspension no
longer exist, (i) all Advances that would otherwise be

                                       19
<PAGE>
made by such Lender as Eurodollar Rate Advances shall instead be made as Base
Rate Advances and (ii) to the extent that Eurodollar Rate Advances of such
Lender have been converted into Base Rate Advances pursuant to the preceding
paragraph or made instead as Base Rate Advances pursuant to the preceding clause
(i), all payments and prepayments of principal that would have otherwise been
applied to such Eurodollar Rate Advances of such Lender shall be applied instead
to such Base Rate Advances of such Lender.

      SECTION 2.13 Payments and Computations. (a) Each Borrower shall make each
payment hereunder and under any Note issued by such Borrower not later than
10:00 A.M. (Chicago time) on the day when due in U.S. dollars to the
Administrative Agent at its address referred to in Section 8.02 in same day
funds without setoff, counterclaim or other deduction. The Administrative Agent
will promptly thereafter cause to be distributed like funds relating to the
payment of principal, interest, facility fees, utilization fees and letter of
credit fees ratably (other than amounts payable pursuant to Section 2.02(b),
2.07, 2.11, 2.14 or 8.04(b)) to the Lenders for the account of their respective
Applicable Lending Offices, and like funds relating to the payment of any other
amount payable to any Lender to such Lender for the account of its Applicable
Lending Office, in each case to be applied in accordance with the terms of this
Agreement. Upon its acceptance of an Assignment and Acceptance and recording of
the information contained therein in the Register pursuant to Section 8.07(d),
from and after the effective date specified in such Assignment and Acceptance,
the Administrative Agent shall make all payments hereunder and under the Notes
in respect of the interest assigned thereby to the Lender assignee thereunder,
and the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly
between themselves.

            (b) Each Borrower hereby authorizes each Lender, if and to the
extent any payment owed to such Lender by such Borrower is not made when due
hereunder, to charge from time to time against any or all of such Borrower's
accounts with such Lender any amount so due.

            (c) All computations of interest based on the Prime Rate shall be
made by the Administrative Agent on the basis of a year of 365 or 366 days, as
the case may be, and all computations of interest based on the Eurodollar Rate
or the Federal Funds Rate and of fees shall be made by the Administrative Agent,
and all computations of interest pursuant to Section 2.07 shall be made by a
Lender, on the basis of a year of 360 days, in each case for the actual number
of days (including the first day but excluding the last day) occurring in the
period for which such interest or fees are payable. Each determination by the
Administrative Agent (or, in the case of Section 2.07, by a Lender) of an
interest rate hereunder shall be conclusive and binding for all purposes, absent
manifest error.

            (d) Whenever any payment hereunder or under the Notes shall be
stated to be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of any interest or fees, as the case may be;
provided that if such extension would cause payment of interest on or principal
of a Eurodollar Rate Advance to be made in the next following calendar month,
such payment shall be made on the next preceding Business Day.

                                       20
<PAGE>
            (e) Unless the Administrative Agent shall have received notice from
a Borrower prior to the date on which any payment is due by such Borrower to the
Lenders hereunder that such Borrower will not make such payment in full, the
Administrative Agent may assume that such Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender. If and to the
extent that such Borrower shall not have so made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender together with
interest thereon, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative
Agent, at the Federal Funds Rate.

            (f) Notwithstanding anything to the contrary contained herein, any
amount payable by a Borrower hereunder that is not paid when due (whether at
stated maturity, by acceleration or otherwise) shall (to the fullest extent
permitted by law) bear interest from the date when due until paid in full at a
rate per annum equal at all times to the Base Rate plus 2%, payable upon demand.

      SECTION 2.14 Taxes. (a) Any and all payments by any Borrower hereunder or
under any Note issued by such Borrower shall be made, in accordance with Section
2.13, free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
with respect thereto, excluding, in the case of each Lender, the LC Issuer and
the Administrative Agent, taxes imposed on its income, and franchise taxes
imposed on it, by the jurisdiction under the laws of which such Lender, the LC
Issuer or the Administrative Agent (as the case may be) is organized or any
political subdivision thereof and, in the case of each Lender, taxes imposed on
its income, and franchise taxes imposed on it, by the jurisdiction of such
Lender's Applicable Lending Office or any political subdivision thereof (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities being hereinafter referred to as "Taxes"). If a Borrower shall be
required by law to deduct any Taxes from or in respect of any sum payable
hereunder or under any Note issued by such Borrower to any Lender, the LC Issuer
or the Administrative Agent, (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 2.14) such Lender, the
LC Issuer or the Administrative Agent (as the case may be) receives an amount
equal to the sum it would have received had no such deductions been made, (ii)
such Borrower shall make such deductions and (iii) such Borrower shall pay the
full amount deducted to the relevant taxation authority or other authority in
accordance with applicable law.

            (b) In addition, each Borrower severally agrees to pay any present
or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies to the extent arising from the execution, delivery or
registration of this Agreement or the Notes (hereinafter referred to as "Other
Taxes"), in each case to the extent attributable to such Borrower; it being
understood that to the extent any Other Taxes so payable are not attributable to
any particular Borrower, each Borrower shall pay its proportionate share thereof
according to the amounts of the Borrowers' respective Sublimits at the time such
Other Taxes arose.

                                       21
<PAGE>
            (c) No Lender may claim or demand payment or reimbursement in
respect of any Taxes or Other Taxes pursuant to this Section 2.14 if such Taxes
or Other Taxes, as the case may be, were imposed solely as the result of a
voluntary change in the location of the jurisdiction of such Lender's Applicable
Lending Office.

            (d) Each Borrower will indemnify each Lender, the LC Issuer and the
Administrative Agent for the full amount of Taxes or Other Taxes (including,
without limitation, any Taxes or Other Taxes imposed by any jurisdiction on
amounts payable under this Section 2.14) paid by such Lender, the LC Issuer or
the Administrative Agent (as the case may be) and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto,
whether or not such Taxes or Other Taxes were correctly or legally asserted, in
each case to the extent attributable to such Borrower; it being understood that
to the extent any Taxes, Other Taxes or other liabilities described above are
not attributable to a particular Borrower, each Borrower shall pay its
proportionate share thereof according to the amounts of the Borrowers'
respective Sublimits at the time such Taxes, Other Taxes or other liability
arose. This indemnification shall be made within 30 days from the date such
Lender, the LC Issuer or the Administrative Agent (as the case may be) makes
written demand therefor.

            (e) Prior to the date of an initial borrowing hereunder in the case
of each Lender listed on the signature pages hereof, and on the date of the
Assignment and Acceptance pursuant to which it became a Lender in the case of
each other Lender, and from time to time thereafter within 30 days from the date
of request if requested by any Borrower or the Administrative Agent, each Lender
organized under the laws of a jurisdiction outside the United States shall
provide the Administrative Agent and each Borrower with the forms prescribed by
the Internal Revenue Service of the United States certifying that such Lender is
exempt from United States withholding taxes with respect to all payments to be
made to such Lender hereunder and under the Notes. If for any reason during the
term of this Agreement, any Lender becomes unable to submit the forms referred
to above or the information or representations contained therein are no longer
accurate in any material respect, such Lender shall notify the Administrative
Agent and the Borrowers in writing to that effect. Unless the Borrowers and the
Administrative Agent have received forms or other documents satisfactory to them
indicating that payments hereunder or under any Note are not subject to United
States withholding tax, the Borrowers or the Administrative Agent shall withhold
taxes from such payments at the applicable statutory rate in the case of
payments to or for any Lender organized under the laws of a jurisdiction outside
the United States and no Lender may claim or demand payment or reimbursement for
such withheld taxes pursuant to this Section 2.14.

            (f) Any Lender claiming any additional amounts payable pursuant to
this Section 2.14 shall use its best efforts (consistent with its internal
policy and legal and regulatory restrictions) to change the jurisdiction of its
Applicable Lending Office if the making of such a change would avoid the need
for, or reduce the amount of, any such additional amounts which may thereafter
accrue and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.

            (g) If a Borrower makes any additional payment to any Lender
pursuant to this Section 2.14 in respect of any Taxes or Other Taxes, and such
Lender determines that it has received (i) a refund of such Taxes or Other Taxes
or (ii) a credit against or relief or remission

                                       22
<PAGE>
for, or a reduction in the amount of, any tax or other governmental charge
attributable solely to any deduction or credit for any Taxes or Other Taxes with
respect to which it has received payments under this Section 2.14, such Lender
shall, to the extent that it can do so without prejudice to the retention of
such refund, credit, relief, remission or reduction, pay to such Borrower such
amount as such Lender shall have determined to be attributable to the deduction
or withholding of such Taxes or Other Taxes. If, within one year after the
payment of any such amount to such Borrower, such Lender determines that it was
not entitled to such refund, credit, relief, remission or reduction to the full
extent of any payment made pursuant to the first sentence of this Section
2.14(g), such Borrower shall upon notice and demand of such Lender promptly
repay the amount of such overpayment. Any determination made by a Lender
pursuant to this Section 2.14(g) shall in the absence of bad faith or manifest
error be conclusive, and nothing in this Section 2.14(g) shall be construed as
requiring any Lender to conduct its business or to arrange or alter in any
respect its tax or financial affairs (except as required by Section 2.14(f)) so
that it is entitled to receive such a refund, credit or reduction or as allowing
any Person to inspect any records, including tax returns, of such Lender.

            (h) Without prejudice to the survival of any other agreement of any
Borrower or any Lender hereunder, the agreements and obligations of the
Borrowers and the Lenders contained in this Section 2.14 shall survive the
payment in full of principal and interest hereunder and under the Notes;
provided that no Lender shall be entitled to demand any payment from a Borrower
under this Section 2.14 more than one year following the payment to or for the
account of such Lender of all other amounts payable by such Borrower hereunder
and under any Note issued by such Borrower to such Lender and the termination of
such Lender's Commitment to such Borrower; provided further, however, that the
foregoing proviso shall in no way limit the right of any Lender to demand or
receive any payment under this Section 2.14 to the extent that such payment
relates to the retroactive application of any Taxes or Other Taxes if such
demand is made within one year after the implementation of such Taxes or Other
Taxes.

      SECTION 2.15 Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Advances made by it to any Borrower or
its participation interest in any Facility LC issued for the account of any
Borrower (other than pursuant to Section 2.02(b), 2.07, 2.11, 2.14 or 8.04(b))
in excess of its ratable share of payments on account of the Advances to such
Borrower and Facility LCs issued for the account of such Borrower obtained by
all Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Advances made by them to such Borrower and/or LC
Obligations of such Borrower as shall be necessary to cause such purchasing
Lender to share the excess payment ratably with each of them, provided, that if
all or any portion of such excess payment is thereafter recovered from such
purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of
such recovery together with an amount equal to such Lender's ratable share
(according to the proportion of (i) the amount of such Lender's required
repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. The Borrowers agree that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.15
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully

                                       23
<PAGE>
as if such Lender were the direct creditor of the applicable Borrower in the
amount of such participation.

      SECTION 2.16 Facility LCs.

            SECTION 2.16.1 Issuance. The LC Issuer hereby agrees, on the terms
      and conditions set forth in this Agreement (including the limitations set
      forth in Section 2.01), upon the request of any Borrower, to issue standby
      letters of credit (each a "Facility LC") and to renew, extend, increase,
      decrease or otherwise modify Facility LCs ("Modify," and each such action
      a "Modification") for such Borrower, from time to time from and including
      the date of this Agreement and prior to the Commitment Termination Date
      for such Borrower. No Facility LC shall have an expiry date later than the
      earlier of (a) 364 days after the date of issuance, or of extension or
      renewal, thereof or (b) 360 days after the scheduled Commitment
      Termination Date. No Facility LC may be renewed or extended, or increased
      in amount, after the Commitment Termination Date.

            SECTION 2.16.2 Participations. Upon the issuance or Modification by
      the LC Issuer of a Facility LC in accordance with this Section 2.16, the
      LC Issuer shall be deemed, without further action by any party hereto, to
      have unconditionally and irrevocably sold to each Lender, and each Lender
      shall be deemed, without further action by any party hereto, to have
      unconditionally and irrevocably purchased from the LC Issuer, a
      participation in such Facility LC (and each Modification thereof) and the
      related LC Obligations in proportion to its Pro Rata Share.

            SECTION 2.16.3 Notice. Subject to Section 2.16.1, the applicable
      Borrower shall give the LC Issuer notice prior to 10:00 A.M. (Chicago
      time) at least five Business Days prior to the proposed date of issuance
      or Modification of each Facility LC, specifying the beneficiary, the
      proposed date of issuance (or Modification) and the expiry date of such
      Facility LC, and describing the proposed terms of such Facility LC and the
      nature of the transactions proposed to be supported thereby. Upon receipt
      of such notice, the LC Issuer shall promptly notify the Administrative
      Agent, and the Administrative Agent shall promptly notify each Lender, of
      the contents thereof and of the amount of such Lender's participation in
      such proposed Facility LC. The issuance or Modification by the LC Issuer
      of any Facility LC shall, in addition to the applicable conditions
      precedent set forth in Article III (the satisfaction of which the LC
      Issuer shall have no duty to ascertain), be subject to the conditions
      precedent that such Facility LC shall be satisfactory to the LC Issuer and
      that the applicable Borrower shall have executed and delivered such
      application agreement and/or such other instruments and agreements
      relating to such Facility LC as the LC Issuer shall have reasonably
      requested (each a "Facility LC Application"). In the event of any conflict
      between the terms of this Agreement and the terms of any Facility LC
      Application, the terms of this Agreement shall control.

            SECTION 2.16.4 LC Fees. Each Borrower shall pay to the Agent, for
      the account of the Lenders ratably in accordance with their respective Pro
      Rata Shares, with respect to each Facility LC issued for the account of
      such Borrower, a letter of credit fee at a per annum rate equal to the LC
      Fee Rate to such Borrower in effect from time to time on the average daily
      undrawn stated amount under such Facility LC, such fee to be payable in

                                       24
<PAGE>
      arrears on the last day of each March, June, September and December and on
      the Final Termination Date for such Borrower (and thereafter on demand).
      Each Borrower shall also pay to the LC Issuer for its own account (x) a
      fronting fee in an amount and at the times agreed upon between the LC
      Issuer and such Borrower and (y) documentary and processing charges in
      connection with the issuance or Modification of and draws under Facility
      LCs in accordance with the LC Issuer's standard schedule for such charges
      as in effect from time to time.

            SECTION 2.16.5 Administration; Reimbursement by Lenders. Upon
      receipt from the beneficiary of any Facility LC of any demand for payment
      under such Facility LC, the LC Issuer shall notify the Administrative
      Agent and the Administrative Agent shall promptly notify the applicable
      Borrower and each Lender as to the amount to be paid by the LC Issuer as a
      result of such demand and the proposed payment date (the "LC Payment
      Date"). The responsibility of the LC Issuer to the applicable Borrower and
      each Lender shall be only to determine that the documents (including each
      demand for payment) delivered under each Facility LC in connection with
      such presentment shall be in conformity in all material respects with such
      Facility LC. The LC Issuer shall endeavor to exercise the same care in the
      issuance and administration of the Facility LCs as it does with respect to
      letters of credit in which no participations are granted, it being
      understood that in the absence of any gross negligence or willful
      misconduct by the LC Issuer, each Lender shall be unconditionally and
      irrevocably liable, without regard to the occurrence of the Commitment
      Termination Date or the Final Termination Date for the applicable
      Borrower, the occurrence of any Event of Default or Unmatured Event of
      Default or any condition precedent whatsoever, to reimburse the LC Issuer
      on demand for (i) such Lender's Pro Rata Share of the amount of each
      payment made by the LC Issuer under each Facility LC to the extent such
      amount is not reimbursed by the applicable Borrower pursuant to Section
      2.16.6 below, plus (ii) interest on the foregoing amount to be reimbursed
      by such Lender, for each day from the date of the LC Issuer's demand for
      such reimbursement (or, if such demand is made after 11:00 A.M. (Chicago
      time) on such day, from the next succeeding Business Day) to the date on
      which such Lender pays the amount to be reimbursed by it, at a rate of
      interest per annum equal to the Federal Funds Rate for the first three
      days and, thereafter, at the Base Rate.

            SECTION 2.16.6 Reimbursement by Borrowers. Each Borrower shall be
      irrevocably and unconditionally obligated to reimburse the LC Issuer on or
      before the applicable LC Payment Date for any amount to be paid by the LC
      Issuer upon any drawing under any Facility LC issued for the account of
      such Borrower, without presentment, demand, protest or other formalities
      of any kind; provided that neither the applicable Borrower nor any Lender
      shall hereby be precluded from asserting any claim for direct (but not
      consequential) damages suffered by such Borrower or such Lender to the
      extent, but only to the extent, caused by (i) the willful misconduct or
      gross negligence of the LC Issuer in determining whether a request
      presented under any Facility LC complied with the terms of such Facility
      LC or (ii) the LC Issuer's failure to pay under any Facility LC after the
      presentation to it of a request strictly complying with the terms and
      conditions of such Facility LC. All such amounts paid by the LC Issuer and
      remaining unpaid by the applicable Borrower shall bear interest, payable
      on demand, for each day until paid at a rate per annum equal to the Base
      Rate plus 2%. The LC Issuer

                                       25
<PAGE>
      will pay to each Lender ratably in accordance with its Pro Rata Share all
      amounts received by it from any Borrower for application in payment, in
      whole or in part, of the Reimbursement Obligation in respect of any
      Facility LC issued by the LC Issuer, but only to the extent such Lender
      has made payment to the LC Issuer in respect of such Facility LC pursuant
      to Section 2.16.5. So long as the Commitment Termination Date has not
      occurred with respect to a Borrower, but subject to the terms and
      conditions of this Agreement (including the submission of a Notice of
      Borrowing in compliance with Section 2.02 and the satisfaction of the
      applicable conditions precedent set forth in Article III), such Borrower
      may request Advances hereunder for the purpose of satisfying any
      Reimbursement Obligation.

            SECTION 2.16.7 Obligations Absolute. Each Borrower's obligations
      under this Section 2.16 shall be absolute and unconditional under any and
      all circumstances and irrespective of any setoff, counterclaim or defense
      to payment which such Borrower may have against the LC Issuer, any Lender
      or any beneficiary of a Facility LC. Each Borrower agrees with the LC
      Issuer and the Lenders that the LC Issuer and the Lenders shall not be
      responsible for, and such Borrower's Reimbursement Obligation in respect
      of any Facility LC issued for its account shall not be affected by, among
      other things, the validity or genuineness of documents or of any
      endorsements thereon, even if such documents should in fact prove to be in
      any or all respects invalid, fraudulent or forged, or any dispute between
      or among such Borrower, any of its Affiliates, the beneficiary of any
      Facility LC or any financing institution or other party to whom any
      Facility LC may be transferred or any claims or defenses whatsoever of
      such Borrower or of any of its Affiliates against the beneficiary of any
      Facility LC or any such transferee. The LC Issuer shall not be liable for
      any error, omission, interruption or delay in transmission, dispatch or
      delivery of any message or advice, however transmitted, in connection with
      any Facility LC. Each Borrower agrees that any action taken or omitted by
      the LC Issuer or any Lender under or in connection with any Facility LC
      issued for the account of such Borrower and the related drafts and
      documents, if done without gross negligence or willful misconduct, shall
      be binding upon such Borrower and shall not put the LC Issuer or any
      Lender under any liability to such Borrower. Nothing in this Section
      2.16.7 is intended to limit the right of any Borrower to make a claim
      against the LC Issuer for damages as contemplated by the proviso to the
      first sentence of Section 2.16.6.

            SECTION 2.16.8 Actions of LC Issuer. The LC Issuer shall be entitled
      to rely, and shall be fully protected in relying, upon any Facility LC,
      draft, writing, resolution, notice, consent, certificate, affidavit,
      letter, cablegram, telegram, telecopy, telex or teletype message,
      statement, order or other document believed by it to be genuine and
      correct and to have been signed, sent or made by the proper Person or
      Persons, and upon advice and statements of legal counsel, independent
      accountants and other experts selected by the LC Issuer. The LC Issuer
      shall be fully justified in failing or refusing to take any action under
      this Agreement unless it shall first have received such advice or
      concurrence of the Majority Lenders as it reasonably deems appropriate or
      it shall first be indemnified to its reasonable satisfaction by the
      Lenders against any and all liability and expense which may be incurred by
      it by reason of taking or continuing to take any such action.
      Notwithstanding any other provision of this Section 2.16, the LC Issuer
      shall in all cases be fully protected in acting, or in refraining from
      acting, under this Agreement

                                       26
<PAGE>
      in accordance with a request of the Majority Lenders, and such request and
      any action taken or failure to act pursuant thereto shall be binding upon
      the Lenders and any future holder of a participation in any Facility LC.

            SECTION 2.16.9 Indemnification. Each Borrower hereby agrees to
      indemnify and hold harmless each Lender, the LC Issuer and the Agent, and
      their respective directors, officers, agents and employees, from and
      against any and all claims and damages, losses, liabilities, costs or
      expenses which such Lender, the LC Issuer or the Agent may incur (or which
      may be claimed against such Lender, the LC Issuer or the Agent by any
      Person whatsoever) by reason of or in connection with the issuance,
      execution and delivery or transfer of or payment or failure to pay under
      any Facility LC issued for the account of such Borrower or any actual or
      proposed use of any such Facility LC, including, without limitation, any
      claims, damages, losses, liabilities, costs or expenses which the LC
      Issuer may incur by reason of or in connection with (i) the failure of any
      other Lender to fulfill or comply with its obligations to the LC Issuer
      hereunder (but nothing herein contained shall affect any right such
      Borrower may have against any defaulting Lender) or (ii) by reason of or
      on account of the LC Issuer issuing any such Facility LC which specifies
      that the term "Beneficiary" included therein includes any successor by
      operation of law of the named Beneficiary, but which Facility LC does not
      require that any drawing by any such successor Beneficiary be accompanied
      by a copy of a legal document, satisfactory to the LC Issuer, evidencing
      the appointment of such successor Beneficiary; provided that no Borrower
      shall be required to indemnify any Lender, the LC Issuer or the Agent for
      any claims, damages, losses, liabilities, costs or expenses to the extent,
      but only to the extent, caused by (x) the willful misconduct or gross
      negligence of the LC Issuer in determining whether a request presented
      under any Facility LC complied with the terms of such Facility LC or (y)
      the LC Issuer's failure to pay under any Facility LC after the
      presentation to it of a request strictly complying with the terms and
      conditions of such Facility LC. Nothing in this Section 2.16.9 is intended
      to limit the obligations of any Borrower under any other provision of this
      Agreement.

            SECTION 2.16.10 Lenders' Indemnification. Each Lender shall, ratably
      in accordance with its Pro Rata Share, indemnify the LC Issuer, its
      affiliates and their respective directors, officers, agents and employees
      (to the extent not reimbursed by the Borrower) against any cost, expense
      (including reasonable counsel fees and disbursements), claim, demand,
      action, loss or liability (except such as result from such indemnitees'
      gross negligence or willful misconduct or the LC Issuer's failure to pay
      under any Facility LC after the presentation to it of a request strictly
      complying with the terms and conditions of the Facility LC) that such
      indemnitees may suffer or incur in connection with this Section 2.16 or
      any action taken or omitted by such indemnitees hereunder.

            SECTION 2.16.11 Rights as a Lender. In its capacity as a Lender, the
      LC Issuer shall have the same rights and obligations as any other Lender.

      SECTION 2.17 Extension of Commitment Termination Date. Exelon may request
an extension of the scheduled Commitment Termination Date for all Borrowers by
submitting a request for an extension to the Administrative Agent (an "Extension
Request") no more than 60

                                       27
<PAGE>
days prior to the scheduled Commitment Termination Date then in effect. The
Extension Request must specify the new scheduled Commitment Termination Date
requested by Exelon and the date (which must be at least 30 days after the
Extension Request is delivered to the Administrative Agent) as of which the
Lenders must respond to the Extension Request (the "Response Date"). The new
scheduled Commitment Termination Date shall be 364 days after the scheduled
Commitment Termination Date in effect at the time an Extension Request is
received, including the scheduled Commitment Termination Date as one of the days
in the calculation of the days elapsed. Promptly upon receipt of an Extension
Request, the Administrative Agent shall notify each Lender of the contents
thereof and shall request each Lender to approve such Extension Request, which
approval shall be at the sole discretion of each Lender. Each Lender approving
such Extension Request shall deliver its written consent no later than the
Response Date. If the written consent of each of the Lenders (excluding any
Person which ceases to be a Lender pursuant to Section 8.07(g)(iii)) is received
by the Administrative Agent, the new scheduled Commitment Termination Date
specified in the Extension Request shall become effective on the existing
scheduled Commitment Termination Date and the Administrative Agent shall
promptly notify each Borrower and each Lender of the new scheduled Commitment
Termination Date. If all Lenders (including any Person which becomes a Lender
pursuant to Section 8.07(g)) do not consent to an Extension Request, the
scheduled Commitment Termination Date shall not be extended pursuant to such
Extension Request.

                                  ARTICLE III

                         CONDITIONS TO CREDIT EXTENSIONS

      SECTION 3.01 Conditions Precedent to Initial Credit Extensions. No Lender
shall be obligated to make any Advance, and the LC Issuer shall not be obligated
to issue any Facility LC, unless the Administrative Agent shall have received
(a) evidence, satisfactory to the Administrative Agent, that the Borrowers have
paid (or will pay with the proceeds of the initial Credit Extensions) all
amounts then payable under the Existing Agreement and (b) each of the following
documents, each dated the date of the initial Credit Extension (or an earlier
date satisfactory to the Administrative Agent), in form and substance
satisfactory to the Administrative Agent and each (except for the Notes) in
sufficient copies to provide one for each Lender:

                  (i) The Notes payable to the order of each of the Lenders,
            respectively;

                  (ii) Certified copies of resolutions of the Board of Directors
            or equivalent managing body of each Borrower approving the
            transactions contemplated by this Agreement and the Notes and of all
            documents evidencing other necessary organizational action of such
            Borrower with respect to this Agreement and the documents
            contemplated hereby;

                  (iii) A certificate of the Secretary or an Assistant Secretary
            of each Borrower certifying (A) the names and true signatures of the
            officers of such Borrower authorized to sign this Agreement and the
            other documents to be delivered hereunder; (B) that attached thereto
            are true and correct copies of the

                                       28
<PAGE>
            articles or certificate of incorporation and by-laws, or equivalent
            organizational documents, of such Borrower, in each case in effect
            on such date; and (C) that attached thereto are true and correct
            copies of all governmental and regulatory authorizations and
            approvals required for the due execution, delivery and performance
            by such Borrower of this Agreement and the documents contemplated
            hereby;

                  (iv) A certificate signed by either the chief financial
            officer, principal accounting officer or treasurer of each Borrower
            stating that (A) the representations and warranties contained in
            Section 4.01 are correct on and as of the date of such certificate
            as though made on and as of such date and (B) no Event of Default or
            Unmatured Event of Default has occurred and is continuing on the
            date of such certificate; and

                  (v) A favorable opinion of Ballard Spahr Andrews & Ingersoll
            LLC, special counsel for the Borrowers, substantially in the form of
            Exhibit D-1 hereto.

      SECTION 3.02 Conditions Precedent to All Credit Extensions. The obligation
of each Lender to make any Advance to any Borrower and of the LC Issuer to issue
or modify any Facility LC for the account of any Borrower shall be subject to
the further conditions precedent that on the date of such Credit Extension the
following statements shall be true, and (a) the giving of the applicable Notice
of Borrowing and the acceptance by the applicable Borrower of the proceeds of
Advances pursuant thereto and (b) the request by a Borrower for the issuance or
Modification of a Facility LC shall, in each case, constitute a representation
and warranty by such Borrower that on the date of the making of such Advances or
the issuance or Modification of such Facility LC such statements are true:

                  (A) The representations and warranties of such Borrower
      contained in Section 4.01 are correct on and as of the date of such Credit
      Extension, before and after giving effect to such Credit Extension and, in
      the case of the making of Advances, the application of the proceeds
      therefrom, as though made on and as of such date; and

                  (B) No event has occurred and is continuing, or would result
      from such Credit Extension or, in the case of the making of Advances, from
      the application of the proceeds therefrom, that constitutes an Event of
      Default or Unmatured Event of Default with respect to such Borrower.

      SECTION 3.03 Additional Conditions Precedent to Initial Credit Extension
to Genco. The obligation of each Lender to make its initial Advance to Genco and
of the LC Issuer to issue any Facility LC for the account of Genco shall be
subject to the further conditions precedent that (a) Genco shall have delivered
audited financial statements to the Administrative Agent and the Lenders and (b)
100% of the Lenders shall have notified the Administrative Agent that such
audited financial statements are satisfactory in form and substance to such
Lenders.

      SECTION 3.04 Additional Condition Precedent to Initial Credit Extension to
ComEd. The obligation of each Lender to make its initial Advance to ComEd and of
the LC Issuer to issue any Facility LC for the account of ComEd shall be subject
to the further condition

                                       29
<PAGE>
precedent that the Administrative Agent shall have received, in form and
substance satisfactory to the Administrative Agent and in sufficient copies to
provide one for each Lender, a favorable opinion of Sidley Austin Brown & Wood,
special counsel for ComEd, substantially in the form of Exhibit D-2 hereto.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

      SECTION 4.01 Representations and Warranties of the Borrowers. Each
Borrower represents and warrants as follows:

            (a) Such Borrower is a corporation, limited liability company or
business trust duly organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation or organization.

            (b) The execution, delivery and performance by such Borrower of this
Agreement and the Notes issued by such Borrower are within such Borrower's
powers, have been duly authorized by all necessary organizational action on the
part of such Borrower, and do not and will not contravene (i) the articles or
certificate of incorporation, by-laws or the organizational documents of such
Borrower, (ii) applicable law or (iii) any contractual or legal restriction
binding on or affecting the properties of such Borrower or any of its
Subsidiaries.

            (c) No authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body is required for
the due execution, delivery and performance by such Borrower of this Agreement
or the applicable Notes, except an appropriate order or orders of (i) the
Securities and Exchange Commission under the Public Utility Holding Company Act
of 1935 and (ii) in the case of ComEd, the Illinois Commerce Commission under
the Illinois Public Utilities Act, which order or orders have been duly obtained
(or, in the case of the order or orders referred to in clause (ii), will have
been obtained prior to any Credit Extension to ComEd) and are (or, in the case
of the order or orders referred to in clause (ii), will be at the time of any
Credit Extension to ComEd) (x) in full force and effect and (y) sufficient for
the purposes hereof.

            (d) This Agreement is, and the applicable Notes when delivered
hereunder will be, legal, valid and binding obligations of such Borrowers,
enforceable against such Borrower in accordance with their respective terms,
except as the enforceability thereof may be limited by equitable principles or
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors' rights generally.

            (e) (i) In the case of PECO, the consolidated balance sheet of PECO
            and its Subsidiaries as at December 31, 2000, and the related
            statements of income and retained earnings and of cash flows of PECO
            and its Subsidiaries for the fiscal year then ended, certified by
            Pricewaterhouse Coopers LLP, and the unaudited consolidated balance
            sheet of PECO and its Subsidiaries as at September 30, 2001, and the
            related unaudited statement of income for the nine-month period then
            ended, copies of which have been furnished to each Lender,

                                       30
<PAGE>
            fairly present in all material respects (subject, in the case of
            such balance sheet and statement of income for the period ended
            September 30, 2001, to year-end adjustments) the consolidated
            financial condition of PECO and its Subsidiaries as at such dates
            and the consolidated results of the operations of PECO and its
            Subsidiaries for the periods ended on such dates, all in accordance
            with GAAP; and since September 30, 2001 there has been no Material
            Adverse Change with respect to PECO.

                  (ii) In the case of ComEd, the consolidated balance sheet of
            ComEd and its Subsidiaries as at December 31, 2000 and the related
            consolidated statements of income, retained earnings and cash flows
            of ComEd and its Subsidiaries for the fiscal year then ended,
            certified by Pricewaterhouse Coopers LLP, and the unaudited
            consolidated balance sheet of ComEd and its Subsidiaries as of
            September 30, 2001 and the related unaudited statement of income for
            the nine-month period then ended, copies of which have been
            furnished to each Lender, fairly present in all material respects
            (subject in the case of such balance sheet and statement of income
            for the period ended September 30, 2001, to year-end adjustments)
            the consolidated financial condition of ComEd and its Subsidiaries
            as at such dates and the consolidated results of the operations of
            ComEd and its Subsidiaries for the periods ended on such dates in
            accordance with GAAP; and since December 31, 2000 there has been no
            Material Adverse Change with respect to ComEd.

                  (iii) In the case of Exelon, the consolidated balance sheet of
            Exelon and its Subsidiaries as at December 31, 2000 and the related
            consolidated statements of income, retained earnings and cash flows
            of Exelon for the fiscal year then ended, certified by
            Pricewaterhouse Coopers LLP, and the unaudited consolidated balance
            sheet of Exelon and its Subsidiaries as of September 30, 2001 and
            the related unaudited statement of income for the nine-month period
            then ended, copies of which have been furnished to each Lender,
            fairly present in all material respects (subject, in the case of
            such balance sheet and statement of income for the period ended
            September 30, 2001, to year-end adjustments) the consolidated
            financial condition of Exelon and its Subsidiaries as at such dates
            and the consolidated results of the operations of Exelon and its
            Subsidiaries for the periods ended on such dates in accordance with
            GAAP; and since December 31, 2000 there has been no Material Adverse
            Change with respect to Exelon.

            (f) Except as disclosed in such Borrower's (and, in the case of
Genco, Exelon's) Annual, Quarterly or Current Reports, each as filed with the
Securities and Exchange Commission and delivered to the Lenders prior to the
later of the date of execution and delivery of this Agreement or the date of the
most recent extension of the Commitment Termination Date pursuant to Section
2.17, there is no pending or threatened action, investigation or proceeding
affecting such Borrower or any of its Subsidiaries before any court,
governmental agency or arbitrator that may reasonably be anticipated to have a
Material Adverse Effect with respect to such Borrower. There is no pending or
threatened action or proceeding against such Borrower or any of its Subsidiaries
that purports to affect the legality, validity, binding effect or enforceability
against such Borrower of this Agreement or any Note issued by such Borrower.

                                       31
<PAGE>
            (g) No proceeds of any Loan to such Borrower have been or will be
used directly or indirectly in connection with the acquisition of in excess of
5% of any class of equity securities that is registered pursuant to Section 12
of the Exchange Act or any transaction subject to the requirements of Section 13
or 14 of the Exchange Act.

            (h) Such Borrower is not engaged in the business of extending credit
for the purpose of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the Board of Governors of the Federal Reserve System),
and no proceeds of any Advance to such Borrower will be used to purchase or
carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock. Not more than 25% of the value of the
assets of such Borrower and its Subsidiaries is represented by margin stock.

            (i) Such Borrower is not an "investment company" or a company
"controlled" by an "investment company" within the meaning of the Investment
Company Act of 1940, as amended.

            (j) During the twelve consecutive month period prior to the date of
the execution and delivery of this Agreement and prior to the date of any
borrowing of Advances by such Borrower or the issuance or modification of any
Facility LC for the account of such Borrower, no steps have been taken to
terminate any Plan, and no contribution failure by such Borrower or any other
member of the Controlled Group has occurred with respect to any Plan. No
condition exists or event or transaction has occurred with respect to any Plan
(including any Multiemployer Plan) which might result in the incurrence by such
Borrower or any other member of the Controlled Group of any material liability,
fine or penalty.

                                   ARTICLE V

                           COVENANTS OF THE BORROWERS

      SECTION 5.01 Affirmative Covenants. Each Borrower agrees that so long as
any amount payable by such Borrower hereunder remains unpaid, any Facility LC
issued for the account of such Borrower remains outstanding or any Lender has
any Commitment to such Borrower hereunder, such Borrower will, and, in the case
of Section 5.01(a), will cause its Principal Subsidiaries to, unless the
Majority Lenders shall otherwise consent in writing:

            (a) Keep Books; Existence; Maintenance of Properties; Compliance
with Laws; Insurance; Taxes.

                  (i) keep proper books of record and account, all in accordance
            with generally accepted accounting principles in the United States,
            consistently applied;

                  (ii) subject to Section 5.02(b), preserve and keep in full
            force and effect its existence;

                  (iii) maintain and preserve all of its properties (except such
            properties the failure of which to maintain or preserve would not
            have, individually or in the aggregate, a Material Adverse Effect on
            such Borrower) which are used or useful

                                       32
<PAGE>
            in the conduct of its business in good working order and condition,
            ordinary wear and tear excepted;

                  (iv) comply in all material respects with the requirements of
            all applicable laws, rules, regulations and orders (including those
            of any governmental authority and including with respect to
            environmental matters) to the extent the failure to so comply,
            individually or in the aggregate, would have a Material Adverse
            Effect on such Borrower;

                  (v) maintain insurance with responsible and reputable
            insurance companies or associations, or self-insure, as the case may
            be, in each case in such amounts and covering such contingencies,
            casualties and risks as is customarily carried by or self-insured
            against by companies engaged in similar businesses and owning
            similar properties in the same general areas in which such Borrower
            and its Principal Subsidiaries operate;

                  (vi) at any reasonable time and from time to time, pursuant to
            prior notice delivered to such Borrower, permit any Lender, or any
            agent or representative of any thereof, to examine and, at such
            Lender's expense, make copies of, and abstracts from the records and
            books of account of, and visit the properties of, such Borrower and
            any of its Principal Subsidiaries and to discuss the affairs,
            finances and accounts of such Borrower and any of its Principal
            Subsidiaries with any of their respective officers; provided that
            any non-public information (which has been identified as such by
            such Borrower or the applicable Principal Subsidiary) obtained by
            any Lender or any of its agents or representatives pursuant to this
            subsection (vi) shall be treated confidentially by such Person;
            provided, further, that such Person may disclose such information to
            any other party to this Agreement, its examiners, affiliates,
            outside auditors, counsel or other professional advisors in
            connection with the Agreement or if otherwise required to do so by
            law or regulatory process; and

                  (vii) use the proceeds of the Advances to it for general
            purposes of such corporation, limited liability company or business
            trust, as the case may be (including, without limitation, the
            refinancing of its commercial paper and the making of acquisitions),
            but in no event for any purpose which would be contrary to clause
            (g) or clause (h) of Section 4.01.

            (b) Reporting Requirements. Furnish to the Lenders:

                  (i) as soon as possible, and in any event within five Business
            Days after the occurrence of any Event of Default or Unmatured Event
            of Default with respect to such Borrower continuing on the date of
            such statement, a statement of an authorized officer of such
            Borrower setting forth details of such Event of Default or Unmatured
            Event of Default and the action which such Borrower proposes to take
            with respect thereto;

                                       33
<PAGE>
                  (ii) as soon as available and in any event within 60 days
            after the end of each of the first three quarters of each fiscal
            year of such Borrower (commencing with the quarter ending March 31,
            2002), a copy of such Borrower's Quarterly Report on Form 10-Q filed
            with the Securities and Exchange Commission with respect to such
            quarter (or, if such Borrower is not required to file a Quarterly
            Report on Form 10-Q, copies of an unaudited consolidated balance
            sheet of such Borrower as of the end of such quarter and the related
            consolidated statement of income of such Borrower for the portion of
            such Borrower's fiscal year ending on the last day of such quarter,
            in each case prepared in accordance with GAAP, subject to the
            absence of footnotes and to year-end adjustments), together with a
            certificate of an authorized officer of such Borrower stating that
            no Event of Default or Unmatured Event of Default with respect to
            such Borrower has occurred and is continuing or, if any such Event
            of Default or Unmatured Event of Default has occurred and is
            continuing, a statement as to the nature thereof and the action
            which such Borrower proposes to take with respect thereto;

                  (iii) as soon as available and in any event within 105 days
            after the end of each fiscal year of such Borrower, a copy of such
            Borrower's Annual Report on Form 10-K filed with the Securities and
            Exchange Commission with respect to such fiscal year (or, if such
            Borrower is not required to file an Annual Report on Form 10-K, the
            consolidated balance sheet of such Borrower and its subsidiaries as
            of the last day of such fiscal year and the related consolidated
            statements of income, retained earnings (if applicable) and
            cashflows of such Borrower for such fiscal year, certified by
            Pricewaterhouse Coopers LLP or other certified public accountants of
            recognized national standing), together with a certificate of an
            authorized officer of such Borrower stating that no Event of Default
            or Unmatured Event of Default with respect to such Borrower has
            occurred and is continuing or, if any such Event of Default or
            Unmatured Event of Default has occurred and is continuing, a
            statement as to the nature thereof and the action which such
            Borrower proposes to take with respect thereto;

                  (iv) concurrently with the delivery of the annual and
            quarterly reports referred to in Sections 5.01(b)(ii) and
            5.01(b)(iii), a compliance certificate in substantially the form set
            forth in Exhibit E, duly completed and signed by the Chief Financial
            Officer, Treasurer or an Assistant Treasurer of such Borrower;

                  (v) except as otherwise provided in subsections (ii) and (iii)
            above, promptly after the sending or filing thereof, copies of all
            reports that such Borrower sends to any of its security holders, and
            copies of all Reports on Form 10-K, 10-Q or 8-K, and registration
            statements and prospectuses that such Borrower or any of its
            Subsidiaries files with the Securities and Exchange Commission or
            any national securities exchange (except to the extent that any such
            registration statement or prospectus relates solely to the issuance
            of securities pursuant to employee or dividend reinvestment plans of
            such Borrower or such Subsidiary);

                                       34
<PAGE>
                  (vi) promptly upon becoming aware of the institution of any
            steps by such Borrower or any other Person to terminate any Plan, or
            the failure to make a required contribution to any Plan if such
            failure is sufficient to give rise to a lien under section 302(f) of
            ERISA, or the taking of any action with respect to a Plan which
            could result in the requirement that such Borrower furnish a bond or
            other security to the PBGC or such Plan, or the occurrence of any
            event with respect to any Plan, which could result in the incurrence
            by such Borrower or any other member of the Controlled Group of any
            material liability, fine or penalty, notice thereof and a statement
            as to the action such Borrower proposes to take with respect
            thereto;

                  (vii) promptly upon becoming aware thereof, notice of any
            change in the Moody's Rating or the S&P Rating for such Borrower;
            and

                  (viii) such other information respecting the condition,
            operations, business or prospects, financial or otherwise, of such
            Borrower or any of its Subsidiaries as any Lender, through the
            Administrative Agent, may from time to time reasonably request.

      SECTION 5.02 Negative Covenants. Each Borrower agrees that so long as any
amount payable by such Borrower hereunder remains unpaid, any Facility LC issued
for the account of such Borrower remains outstanding or any Lender has any
Commitment to such Borrower hereunder (except with respect to subsection (a),
which shall be applicable only as of the date hereof and at any time any Advance
to such Borrower or Facility LC issued for the account of such Borrower is
outstanding or is to be made or issued, as applicable), such Borrower will not,
without the written consent of the Majority Lenders:

            (a) Limitation on Liens. Create, incur, assume or suffer to exist,
or, in the case of Exelon, permit any of its Material Subsidiaries to create,
incur, assume or suffer to exist, any Lien on its respective property, revenues
or assets, whether now owned or hereafter acquired except (i) Liens imposed by
law, such as carriers', warehousemen's and mechanics' Liens and other similar
Liens arising in the ordinary course of business; (ii) Liens on the capital
stock of or any other equity interest in any of its Subsidiaries (excluding, in
the case of Exelon, the stock of ComEd, PECO, Genco and any holding company for
any of the foregoing) or any such Subsidiary's assets to secure Nonrecourse
Indebtedness; (iii) Liens upon or in any property acquired in the ordinary
course of business to secure the purchase price of such property or to secure
any obligation incurred solely for the purpose of financing the acquisition of
such property; (iv) Liens existing on such property at the time of its
acquisition (other than any such Lien created in contemplation of such
acquisition unless permitted by the preceding clause (iii)); (v) Liens on the
property, revenues and/or assets of any Person that exist at the time such
Person becomes a Subsidiary and the continuation of such Liens in connection
with any refinancing or restructuring of the obligations secured by such Liens;
(vi) Liens granted in connection with any financing arrangement for the purchase
of nuclear fuel or the financing of pollution control facilities, limited to the
fuel or facilities so purchased or acquired; (vii) Liens arising in connection
with sales or transfers of, or financing secured by, accounts receivable or
related contracts; provided that any such sale, transfer or financing shall be
on arms' length terms; (viii) Liens granted by a Special Purpose Subsidiary to
secure Transitional Funding Instruments of

                                       35
<PAGE>
such Special Purpose Subsidiary; (ix) in the case of ComEd, Liens arising under
the ComEd Mortgage and "permitted liens" as defined in the ComEd Mortgage; (x)
in the case of PECO, (A) Liens granted under the PECO Mortgage and "excepted
encumbrances" as defined in the PECO Mortgage and (B) Liens securing PECO's
notes collateralized solely by mortgage bonds of PECO issued under the terms of
the PECO Mortgage; (xi) in the case of PECO, ComEd and Genco, Liens arising in
connection with sale and leaseback transactions entered into by such Borrower or
a Subsidiary thereof, but only to the extent (I) in the case of PECO or ComEd or
any Subsidiary thereof, the proceeds received from such sale shall immediately
be applied to retire mortgage bonds of PECO or ComED issued under the terms of
the PECO Mortgage or the ComEd Mortgage, as the case may be, or (II) the
aggregate purchase price of assets sold pursuant to such sale and leaseback
transactions where such proceeds are not applied as provided in clause (I) shall
not exceed, in the aggregate for PECO, ComEd, Genco and their Subsidiaries,
$1,000,000,000; and (xii) Liens, other than those described in clauses (i)
through (xi) of this subsection, granted by such Borrower or, in the case of
Exelon, any of its Material Subsidiaries in the ordinary course of business
securing Debt of such Borrower and, if applicable, such Material Subsidiaries;
provided that the aggregate amount of all Debt secured by such Liens shall not
exceed in the aggregate at any one time outstanding (I) in the case of Exelon
and its Material Subsidiaries, $100,000,000, (II) in the case of ComEd,
$50,000,000, (III) in the case of Genco, $50,000,000, and (IV) in the case of
PECO, $50,000,000.

            (b) Mergers and Consolidations; Disposition of Assets. Merge with or
into or consolidate with or into, or sell, assign, lease or otherwise dispose of
(whether in one transaction or in a series of transactions) all or substantially
all of its assets (whether now owned or hereafter acquired) to any Person or
permit any Principal Subsidiary to do so, except that (i) any of its Principal
Subsidiaries may merge with or into or consolidate with or transfer assets to
any other Principal Subsidiary of such Borrower, (ii) any of its Principal
Subsidiaries may merge with or into or consolidate with or transfer assets to
such Borrower and (iii) such Borrower or any of its Principal Subsidiaries may
merge with or into or consolidate with or transfer assets to any other Person;
provided that, in each case, immediately thereafter in giving effect thereto, no
Event of Default or Unmatured Event of Default with respect to such Borrower
shall have occurred and be continuing and (A) in the case of any such merger,
consolidation or transfer of assets to which a Borrower is a party, either (x)
such Borrower shall be the surviving entity or (y) the surviving entity shall be
an Eligible Successor and shall have assumed all of the obligations of such
Borrower under this Agreement and the Notes issued by such Borrower and the
Facility LCs issued for the account of such Borrower pursuant to a written
instrument in form and substance satisfactory to the Administrative Agent, (B)
subject to clause (A) above, in the case of any such merger, consolidation or
transfer of assets to which any of its Principal Subsidiaries is a party, a
Principal Subsidiary of such Borrower shall be the surviving entity and (C)
subject to clause (A) above, in the case of any such merger, consolidation or
transfer of assets to which a Material Subsidiary of Exelon is a party, a
Material Subsidiary of Exelon shall be the surviving entity.

            (c) Leverage Ratios. Permit its Leverage Ratio to exceed 65% at any
time.

            (d) Continuation of Businesses. Engage in, or permit any of its
Subsidiaries to engage in, any line of business which is material to Exelon and
its Subsidiaries, taken as a whole, other than businesses engaged in by such
Borrower and its Subsidiaries as of the date hereof and reasonable extensions
thereof.

                                       36
<PAGE>
            (e) Capital Structure. In the case of Exelon, fail at any time to
own, free and clear of all Liens, at least 95% of the issued and outstanding
common shares or other common ownership interests of ComEd, 100% of the issued
and outstanding common shares or other common ownership interests of PECO and
100% of the issued and outstanding membership interests of Genco (or, in any
such case, of a holding company which owns, free and clear of all Liens, at
least 95% of the issued and outstanding shares of common stock of ComEd, 100% of
the issued and outstanding common shares or other common ownership interests of
PECO or 100% of the issued and outstanding membership interests of Genco).

            (f) Restrictive Agreements. In the case of Exelon, permit ComEd,
Genco or PECO (or any holding company for any of the foregoing described in the
parenthetical clause at the end of 5.02(e)) to, directly or indirectly, enter
into, incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon the ability of such entity to
declare or pay dividends to Exelon (or, if applicable, to its holding company),
except for existing restrictions on (i) PECO relating to (A) the priority of
payments on its subordinated debentures contained in the Indenture dated as of
July 1, 1994 between PECO and First Union National Bank, as trustee, as amended
and supplemented to the date hereof, and (B) the priority payment of quarterly
dividends on its preferred stock contained in its Amended and Restated Articles
of Incorporation as in effect on the date hereof.; and (ii) ComEd in connection
with its existing Subordinated Deferrable Interest Securities.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

      SECTION 6.01 Events of Default. If any of the following events shall occur
and be continuing with respect to a Borrower (any such event an "Event of
Default" with respect to such Borrower):

            (a) Such Borrower shall fail to pay (i) any principal of any Advance
to such Borrower when the same becomes due and payable, (ii) any Reimbursement
Obligation of such Borrower within one Business Day after the same becomes due
and payable or (iii) any interest on any Advance to such Borrower or any other
amount payable by such Borrower under this Agreement or any Note issued by such
Borrower within three Business Days after the same becomes due and payable; or

            (b) Any representation or warranty made by such Borrower herein or
by such Borrower (or any of its officers) pursuant to the terms of this
Agreement shall prove to have been incorrect or misleading in any material
respect when made; or

            (c) Such Borrower shall fail to perform or observe (i) any term,
covenant or agreement contained in Section 5.02, Section 5.01(a)(vii) or Section
5.01(b)(i), in each case to the extent applicable to such Borrower, or (ii) any
other term, covenant or agreement contained in this Agreement on its part to be
performed or observed if the failure to perform or observe such other term,
covenant or agreement shall remain unremedied for 30 days after written notice
thereof shall have been given to such Borrower by the Administrative Agent
(which notice shall be given by the Administrative Agent at the written request
of any Lender); or

                                       37
<PAGE>
            (d) Such Borrower or any Principal Subsidiary thereof shall fail to
pay any principal of or premium or interest on any Debt that is outstanding in a
principal amount in excess of $50,000,000 in the aggregate (but excluding Debt
evidenced by the Notes, Nonrecourse Indebtedness and Transitional Funding
Instruments) of such Borrower or such Principal Subsidiary (as the case may be)
when the same becomes due and payable (whether by scheduled maturity, required
prepayment, acceleration, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or
instrument relating to such Debt; or any other event shall occur or condition
shall exist under any agreement or instrument relating to any such Debt and
shall continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such event or condition is to
accelerate, or to permit the acceleration of, the maturity of such Debt; or any
such Debt shall be declared to be due and payable, or required to be prepaid
(other than by a regularly scheduled required prepayment), prior to the stated
maturity thereof, other than any acceleration of any Debt secured by equipment
leases or fuel leases of such Borrower or a Principal Subsidiary thereof as a
result of the occurrence of any event requiring a prepayment (whether or not
characterized as such) thereunder, which prepayment will not result in a
Material Adverse Change with respect to such Borrower; or

            (e) Such Borrower or any Principal Subsidiary thereof (other than a
Special Purpose Subsidiary) shall generally not pay its debts as such debts
become due, or shall admit in writing its inability to pay its debts generally,
or shall make a general assignment for the benefit of creditors; or any
proceeding shall be instituted by or against such Borrower or any Principal
Subsidiary thereof (other than a Special Purpose Subsidiary) seeking to
adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or composition of
it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief
or the appointment of a receiver, trustee, custodian or other similar official
for it or for any substantial part of its property and, in the case of any such
proceeding instituted against it (but not instituted by it), either such
proceeding shall remain undismissed or unstayed for a period of 60 days, or any
of the actions sought in such proceeding (including, without limitation, the
entry of an order for relief against, or the appointment of a receiver, trustee,
custodian or other similar official for, it or for any substantial part of its
property,) shall occur; or such Borrower or any Principal Subsidiary thereof
(other than a Special Purpose Subsidiary) shall take any action to authorize or
to consent to any of the actions set forth above in this subsection (e); or

            (f) One or more judgments or orders for the payment of money in an
aggregate amount exceeding $50,000,000 (excluding any such judgments or orders
which are fully covered by insurance, subject to any customary deductible, and
under which the applicable insurance carrier has acknowledged such full coverage
in writing) shall be rendered against such Borrower or any Principal Subsidiary
thereof and either (i) enforcement proceedings shall have been commenced by any
creditor upon such judgment or order or (ii) there shall be any period of 30
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; or

            (g) (i) Any Reportable Event that the Majority Lenders determine in
good faith might constitute grounds for the termination of any Plan or for the
appointment by the appropriate United States District Court of a trustee to
administer a Plan shall have occurred and

                                       38
<PAGE>
be continuing 30 days after written notice to such effect shall have been given
to such Borrower by the Administrative Agent or (ii) any Plan shall be
terminated, or (iii) a Trustee shall be appointed by an appropriate United
States District Court to administer any Plan or (iv) the PBGC shall institute
proceedings to terminate any Plan or to appoint a trustee to administer any
Plan; provided, however, that on the date of any event described in clauses (i)
through (iv) above, the Unfunded Liabilities of such Plan exceed $20,000,000; or

            (h) In the case of ComEd, Exelon (or a wholly owned Subsidiary of
Exelon) shall fail to own, free and clear of all Liens, at least 95% of its
issued and outstanding common shares or other common ownership interests;

            (i) In the case of PECO, Exelon (or a wholly owned Subsidiary of
Exelon) shall fail to own, free and clear of all Liens, 100% of its issued and
outstanding common shares or other common ownership interests; or

            (j) In the case of Genco, Exelon (or a wholly owned Subsidiary of
Exelon) shall fail to own, free and clear of all Liens, 100% of the membership
interests of Genco;

then, and in any such event, the Administrative Agent shall at the request, or
may with the consent, of the Majority Lenders, by notice to such Borrower, (i)
declare the respective Commitments of the Lenders to such Borrower and the
commitment of the LC Issuer to issue Facility LCs for the account of such
Borrower to be terminated, whereupon the same shall forthwith terminate, and/or
(ii) declare the principal amount outstanding under the Notes issued by such
Borrower, all interest thereon and all other amounts payable under this
Agreement by such Borrower (including all contingent LC Obligations) to be
forthwith due and payable, whereupon the principal amount outstanding under such
Notes, all such interest and all such other amounts shall become and be
forthwith due and payable, without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by such Borrower;
provided, however, that in the event of an Event of Default under Section
6.01(e), (A) the obligation of each Lender to make any Advance to such Borrower
and the obligation of the LC Issuer to issue Facility LCs for the account of
such Borrower shall automatically be terminated and (B) the principal amount
outstanding under the Notes issued by such Borrower, all interest thereon and
all other amounts payable by such Borrower hereunder (including all contingent
LC Obligations of such Borrower) shall automatically and immediately become due
and payable, without presentment, demand, protest or any notice of any kind, all
of which are hereby expressly waived by such Borrower.

                                  ARTICLE VII

                                   THE AGENTS

      SECTION 7.01 Authorization and Action. Each Lender hereby appoints and
authorizes the Administrative Agent to take such action as administrative agent
on its behalf and to exercise such powers under this Agreement as are delegated
to the Administrative Agent by the terms hereof, together with such powers as
are reasonably incidental thereto. As to any matters not expressly provided for
by this Agreement (including, without limitation, enforcement or collection of
the Notes), the Administrative Agent shall not be required to exercise any
discretion

                                       39
<PAGE>
or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the
instructions of the Majority Lenders, and such instructions shall be binding
upon all Lenders and all holders of Notes; provided, however, that the
Administrative Agent shall not be required to take any action which exposes the
Administrative Agent to personal liability or which is contrary to this
Agreement or applicable law. The Administrative Agent agrees to give to each
Lender prompt notice of each notice given to it by a Borrower pursuant to the
terms of this Agreement.

      SECTION 7.02 Agents' Reliance, Etc. Neither the Administrative Agent nor
any of its directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
this Agreement, except for its or their respective own gross negligence or
willful misconduct. Without limitation of the generality of the foregoing: (i)
the Administrative Agent may treat the payee of any Note as the holder thereof
until the Administrative Agent receives and accepts an Assignment and Acceptance
entered into by the Lender which is the payee of such Note, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) the
Administrative Agent may consult with legal counsel (including counsel for a
Borrower), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith by
it in accordance with the advice of such counsel, accountants or experts; (iii)
the Administrative Agent makes no warranty or representation to any Lender and
shall not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement; (iv) the Administrative Agent shall not have any duty to ascertain or
to inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement on the part of any Borrower or to inspect the
property (including the books and records) of any Borrower; (v) the
Administrative Agent shall not be responsible to any Lender for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value
of this Agreement or any other instrument or document furnished pursuant hereto;
and (vi) the Administrative Agent shall not incur any liability under or in
respect of this Agreement by acting upon any notice, consent, certificate or
other instrument or writing (which may be by telecopier, telegram, cable or
telex) believed by it to be genuine and signed or sent by the proper party or
parties.

      SECTION 7.03 Agents and Affiliates. With respect to its Commitment,
Advances and Notes, Bank One shall have the same rights and powers under this
Agreement as any other Lender and may exercise the same as though it were not an
Agent; and the term "Lender" or "Lenders" shall, unless otherwise expressly
indicated, include Bank One in its individual capacity. Bank One and its
affiliates may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with, any Borrower,
any subsidiary of any Borrower and any Person who may do business with or own
securities of any Borrower or any such subsidiary, all as if it were not an
Agent and without any duty to account therefor to the Lenders.

      SECTION 7.04 Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on the financial statements referred to in Section 4.01(e) and
such other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance

                                       40
<PAGE>
upon the Administrative Agent or any other Lender and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under this Agreement.

      SECTION 7.05 Indemnification. The Lenders agree to indemnify each Agent
(to the extent not reimbursed by a Borrower), ratably according to their
respective Pro Rata Shares, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by, or asserted against any such Agent in any way relating to or
arising out of this Agreement or any action taken or omitted by any such Agent
under this Agreement, provided that no Lender shall be liable for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from such Agent's gross
negligence or willful misconduct. Without limitation of the foregoing, each
Lender agrees to reimburse each such Agent promptly upon demand for its Pro Rata
Share of any out-of-pocket expenses (including reasonable counsel fees) incurred
by such Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, to the extent that such
expenses are reimbursable by a Borrower but for which such Agent is not
reimbursed by such Borrower.

      SECTION 7.06 Successor Administrative Agent. The Administrative Agent may
resign at any time by giving written notice thereof to the Lenders and the
Borrowers and may be removed at any time with or without cause by the Majority
Lenders. Upon any such resignation or removal, the Majority Lenders shall have
the right to appoint a successor Administrative Agent. If no successor
Administrative Agent shall have been so appointed by the Majority Lenders, and
shall have accepted such appointment, within 30 days after the retiring
Administrative Agent's giving of notice of resignation or the Majority Lenders'
removal of the retiring Administrative Agent, then the retiring Administrative
Agent may, on behalf of the Lenders, appoint a successor Administrative Agent,
which shall be a commercial bank described in clause (i) or (ii) of the
definition of "Eligible Assignee" and having a combined capital and surplus of
at least $150,000,000. Upon the acceptance of any appointment as Administrative
Agent hereunder by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and
obligations under this Agreement. After any retiring Administrative Agent's
resignation or removal hereunder as Administrative Agent, the provisions of this
Article VII shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent under this Agreement.
Notwithstanding the foregoing, if no Event of Default or Unmatured Event of
Default shall have occurred and be continuing, then no successor Administrative
Agent shall be appointed under this Section 7.06 without the prior written
consent of the Borrowers, which consent shall not be unreasonably withheld or
delayed.

      SECTION 7.07 Co-Documentation Agents, Co-Syndication Agents and Lead
Arranger. The titles "Co-Documentation Agent," "Co-Syndication Agent" and "Lead
Arranger and Sole Book Runner" are purely honorific, and no Person designated as
a "Co-Documentation Agent," a "Co-Syndication Agent" or the "Lead Arranger and
Sole Book Runner" shall have any duties or responsibilities in such capacity.

                                       41
<PAGE>
                                  ARTICLE VIII

                                  MISCELLANEOUS

      SECTION 8.01 Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Notes, nor consent to any departure by any Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Majority Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by all the Lenders (other than any Lender that is a Borrower
or an Affiliate of a Borrower), do any of the following: (a) waive any of the
conditions specified in Section 3.01, 3.02 or 3.03, (b) increase or extend the
Commitments of the Lenders, increase any Borrower's Sublimit to an amount
greater than the amount specified in Section 2.04(c)(ii)(B) or subject the
Lenders to any additional obligations, (c) reduce the principal of, or interest
on, the Notes or any fees or other amounts payable hereunder, (d) postpone any
date fixed for any payment of principal of, or interest on, the Notes or any
fees or other amounts payable hereunder, (e) change the percentage of the
Commitments or of the aggregate unpaid principal amount of the Notes, or the
number of Lenders, that shall be required for the Lenders or any of them to take
any action hereunder, or (f) amend this Section 8.01; provided, further, that
(i) no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent, in addition to the Lenders required above to take such
action, affect the rights or duties of the Administrative Agent under this
Agreement or any Note; and (ii) no amendment, waiver or consent shall, unless in
writing and signed by the LC Issuer, in addition to the Lenders required above
to take such action, affect the rights or duties of the LC Issuer under this
Agreement.

      SECTION 8.02 Notices, Etc. All notices and other communications provided
for hereunder shall be in writing (including telecopier, telegraphic, telex or
cable communication) and mailed, telecopied, telegraphed, telexed, cabled or
delivered, if to any Borrower, at 10 S. Dearborn, 37th Floor, Chicago, IL 60603,
Attention: J. Barry Mitchell, Telecopy: (312) 394-5440; if to any Lender listed
on the signature pages hereof, at its Domestic Lending Office specified opposite
its name on Schedule I hereto; if to any other Lender, at its Domestic Lending
Office specified in the Assignment and Acceptance pursuant to which it became a
Lender; and if to the Administrative Agent, at its address at 1 Bank One Plaza,
Mail Suite 0634, 1FPN-10, Chicago, Illinois 60670, Attention: Mr. Ron Cromey,
Telecopy: (312) 732-4840 or, as to each party, at such other address as shall be
designated by such party in a written notice to the other parties. All such
notices and communications shall, when mailed, telecopied, telegraphed, telexed
or cabled, be effective when deposited in the mails, telecopied, delivered to
the telegraph company, confirmed by telex answerback or delivered to the cable
company, respectively, except that notices and communications to the
Administrative Agent pursuant to Article II or VII shall not be effective until
received by the Administrative Agent.

      SECTION 8.03 No Waiver; Remedies. No failure on the part of any Lender,
the LC Issuer or the Administrative Agent to exercise, and no delay in
exercising, any right hereunder or under any Note shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right preclude any
other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

                                       42
<PAGE>
      SECTION 8.04 Costs and Expenses; Indemnification. (a) Each Borrower
severally agrees to pay on demand all costs and expenses incurred by the
Administrative Agent, the LC Issuer and the Lead Arranger in connection with the
preparation, execution, delivery, administration, syndication, modification and
amendment of this Agreement, the Notes and the other documents to be delivered
hereunder, including, without limitation, the reasonable fees, internal charges
and out-of-pocket expenses of counsel (including, without limitation, in-house
counsel) for the Administrative Agent, the LC issuer and the Lead Arranger with
respect thereto and with respect to advising the Administrative Agent, the LC
Issuer and the Lead Arranger as to their respective rights and responsibilities
under this Agreement, in each case to the extent attributable to such Borrower;
it being understood that to the extent any such costs and expenses are not
attributable to a particular Borrower, each Borrower shall pay its proportionate
share thereof according to the Borrowers' respective Sublimits at the time such
costs and expenses were incurred. Each Borrower further severally agrees to pay
on demand all costs and expenses, if any (including, without limitation, counsel
fees and expenses of outside counsel and of internal counsel), incurred by the
Agent, the LC Issuer or any Lender in connection with the collection and
enforcement (whether through negotiations, legal proceedings or otherwise) of
such Borrower's obligations this Agreement, the Notes issued by such Borrower
and the other documents to be delivered by such Borrower hereunder, including,
without limitation, reasonable counsel fees and expenses in connection with the
enforcement of rights under this Section 8.04(a), in each case to the extent
attributable to such Borrower; it being understood that to the extent any such
costs and expenses are not attributable to a particular Borrower, each Borrower
shall pay its proportionate share thereof according to the Borrowers' respective
Sublimits at the time such costs and expenses were incurred.

            (b) If any payment of principal of, or any conversion of, any
Eurodollar Rate Advance is made other than on the last day of the Interest
Period for such Advance, as a result of a payment or conversion pursuant to
Section 2.09 or 2.12 or acceleration of the maturity of the Notes pursuant to
Section 6.01 or for any other reason, the applicable Borrower shall, upon demand
by any Lender (with a copy of such demand to the Administrative Agent), pay to
the Administrative Agent for the account of such Lender any amount required to
compensate such Lender for any additional losses, costs or expenses which it may
reasonably incur as a result of such payment or conversion, including, without
limitation, any loss, cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender to fund or
maintain such Advance.

            (c) Each Borrower hereby severally agrees to indemnify and hold each
Lender, the LC Issuer, each Agent and each of their respective Affiliates,
officers, directors and employees (each, an "Indemnified Person") harmless from
and against any and all claims, damages, losses, liabilities, costs or expenses
(including reasonable attorney's fees and expenses, whether or not such
Indemnified Person is named as a party to any proceeding or is otherwise
subjected to judicial or legal process arising from any such proceeding) that
any of them may pay or incur arising out of or relating to this Agreement, the
Notes or the transactions contemplated thereby, or the use by such Borrowers or
any of its Subsidiaries of the proceeds of any Advance to such Borrower, in each
case to the extent such claims damages, losses, liabilities, costs or expenses
are attributable to such Borrower, it being understood that to the extent any
such claims, damages, losses, liabilities, costs or expenses are not
attributable to a particular Borrower, each Borrower shall pay its proportionate
share thereof according to the Borrowers'

                                       43
<PAGE>
respective Sublimits at the time such claims, damages, losses, liabilities,
costs or expenses arose; provided, however, that no Borrower shall be liable for
any portion of such claims, damages, losses, liabilities, costs or expenses
resulting from such Indemnified Person's gross negligence or willful misconduct.
Each Borrower's obligations under this Section 8.04(c) shall survive the
repayment of all amounts owing by such Borrower to the Lenders and the
Administrative Agent under this Agreement and the Notes issued by such Borrower
and the termination of the Commitments to such Borrower. If and to the extent
that the obligations of a Borrower under this Section 8.04(c) are unenforceable
for any reason, such Borrower agrees to make the maximum contribution to the
payment and satisfaction thereof which is permissible under applicable law.

      SECTION 8.05 Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default with respect to a Borrower and (ii) the
making of the request or the granting of the consent specified by Section 6.01
to authorize the Administrative Agent to declare the Notes issued by such
Borrower due and payable pursuant to the provisions of Section 6.01, each Lender
is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other indebtedness at
any time owing by such Lender to or for the credit or the account of such
Borrower against any and all of the obligations of such Borrower now or
hereafter existing under this Agreement and any Note of such Borrower held by
such Lender, whether or not such Lender shall have made any demand under this
Agreement or such Note and although such obligations may be unmatured. Each
Lender agrees promptly to notify the applicable Borrower after any such set-off
and application made by such Lender, provided that the failure to give such
notice shall not affect the validity of such set-off and application. The rights
of each Lender under this Section 8.05 are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such
Lender may have.

      SECTION 8.06 Binding Effect. This Agreement shall become effective when
counterparts hereof shall have been executed by the Borrowers and the Agents and
when the Administrative Agent shall have been notified by each Lender that such
Lender has executed a counterpart hereof and thereafter shall be binding upon
and inure to the benefit of the Borrowers, the Agents and each Lender and their
respective successors and assigns, provided that (except as permitted by Section
5.02(b)(iii)) no Borrower shall have the right to assign rights hereunder or any
interest herein without the prior written consent of all Lenders.

      SECTION 8.07 Assignments and Participations. (a) Each Lender may, with the
prior written consent of Exelon, the LC Issuer and the Administrative Agent
(which consents shall not be unreasonably withheld or delayed), and if demanded
by a Borrower pursuant to subsection (g) hereof shall to the extent required by
such subsection (g), assign to one or more banks or other entities all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Advances owing to it, its
participation in Facility LCs and the Note or Notes held by it); provided,
however, that (i) each such assignment shall be of a constant, and not a
varying, percentage of all of the assigning Lender's rights and obligations
under this Agreement, (ii) the Commitment Amount of the assigning Lender being
assigned pursuant to each such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be
less than $10,000,000 or, if less, the entire amount of such Lender's
Commitment, and shall be an integral multiple of

                                       44
<PAGE>
$1,000,000 or such Lender's entire Commitment, (iii) each such assignment shall
be to an Eligible Assignee, (iv) the parties to each such assignment shall
execute and deliver to the Administrative Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with any Note
or Notes subject to such assignment and a processing and recordation fee of
$4,000 (which shall be payable by one or more of the parties to the Assignment
and Acceptance, and not by any Borrower, and shall not be payable if the
assignee is a Federal Reserve Bank), and (v) the consent of Exelon shall not be
required after the occurrence and during the continuance of any Event of
Default. Upon such execution, delivery, acceptance and recording, from and after
the effective date specified in each Assignment and Acceptance, (x) the assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (y) the
Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights and be released from its obligations under this Agreement
and, in the case of an Assignment and Acceptance covering all or the remaining
portion of an assigning Lender's rights and obligations under this Agreement,
such Lender shall cease to be a party hereto (although an assigning Lender shall
continue to be entitled to indemnification pursuant to Section 8.04(c)).
Notwithstanding anything contained in this Section 8.07(a) to the contrary, (A)
the consent of Exelon, the LC Issuer and the Administrative Agent shall not be
required with respect to any assignment by any Lender to an Affiliate of such
Lender or to another Lender and (B) any Lender may at any time, without the
consent of Exelon, the LC Issuer or the Administrative Agent, and without any
requirement to have an Assignment and Acceptance executed, assign all or any
part of its rights under this Agreement and its Notes to a Federal Reserve Bank,
provided that any such assignment does not release the transferor Lender from
any of its obligations hereunder.

            (b) By executing and delivering an Assignment and Acceptance, the
Lender assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties hereto as follows: (i) other than as provided
in such Assignment and Acceptance, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of any
Borrower or the performance or observance by any Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01(e) and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Administrative Agent, such assigning Lender or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement; (v) such assignee confirms that it is an Eligible
Assignee; (vi) such assignee appoints and authorizes the Administrative Agent to
take such action as agent on its behalf and to exercise such powers under this
Agreement as are delegated to the Administrative Agent by the terms hereof,
together with such powers as are reasonably incidental thereto; and (vii) such
assignee

                                       45
<PAGE>
agrees that it will perform in accordance with their terms all of the
obligations which by the terms of this Agreement are required to be performed by
it as a Lender.

            (c) The Administrative Agent shall maintain at its address referred
to in Section 8.02 a copy of each Assignment and Acceptance delivered to and
accepted by it and a register for the recordation of the names and addresses of
the Lenders and the Commitment Amount of, and principal amount of the Advances
owing by each Borrower to, each Lender from time to time (the "Register"). The
entries in the Register shall be conclusive and binding for all purposes, absent
manifest error, and each Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register as a Lender hereunder
for all purposes of this Agreement. The Register shall be available for
inspection by any Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.

            (d) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with all Notes subject to such assignment, the Administrative Agent
shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit C hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Borrowers. Within five Business Days
after its receipt of such notice, each Borrower, at its own expense, shall
execute and deliver to the Administrative Agent, in exchange for the surrendered
Note issued by such Borrower a new Note to the order of such Eligible Assignee
in an amount equal to the product of the Commitment Amount assumed by such
Eligible Assignee pursuant to such Assignment and Acceptance multiplied by the
percentage which such Borrower's Sublimit is of the aggregate amount of the
Commitment Amounts (the "Sublimit Percentage") and, if the assigning Lender has
retained a Commitment hereunder, a new Note to the order of the assigning Lender
in an amount equal to the product of the Commitment Amount of such assigning
Lender after giving effect to such assignment multiplied by the Sublimit
Percentage. Each such new Note or Notes shall be dated the effective date of
such Assignment and Acceptance and shall otherwise be in substantially the form
of Exhibit A hereto.

            (e) Each Lender may sell participations to one or more banks or
other entities (each, a "Participant") in or to all or a portion of its rights
and/or obligations under this Agreement (including, without limitation, all or a
portion of its Commitment, the Advances owing to it, its participation in
Facility LCs and the Note or Notes held by it); provided, however, that (i) such
Lender's obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) such Lender shall remain the holder of
any such Note for all purposes of this Agreement, (iv) the Borrowers, the
Administrative Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and (v) such Lender shall retain the sole right
to approve, without the consent of any Participant, any amendment, modification
or waiver of any provision of this Agreement or the Note or Notes held by such
Lender, other than any such amendment, modification or waiver with respect to
any Advance or Commitment in which such Participant has an interest that
forgives principal, interest or fees or reduces the interest rate or fees
payable with respect to any such Advance or Commitment, postpones any date fixed
for any regularly scheduled payment of principal of, or interest or fees on, any
such Advance or Commitment,

                                       46
<PAGE>
extends any Commitment, releases any guarantor of any such Advance or releases
any substantial portion of collateral, if any, securing any such Advance.

            (f) Any Lender may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
8.07, disclose to the assignee or participant or proposed assignee or
participant, any information relating to the Borrowers furnished to such Lender
by or on behalf of the Borrowers; provided that, prior to any such disclosure,
the assignee or participant or proposed assignee or participant shall agree to
preserve the confidentiality of any confidential information relating to the
Borrowers received by it from such Lender (subject to customary exceptions
regarding regulatory requirements, compliance with legal process and other
requirements of law).

            (g) If (i) any Lender shall make demand for payment under Section
2.11(a), 2.11(b) or 2.14, or (ii) shall deliver any notice to the Administrative
Agent pursuant to Section 2.12 resulting in the suspension of certain
obligations of the Lenders with respect to Eurodollar Rate Advances or (iii)
shall fail to consent to, or shall revoke its consent to, an extension of the
scheduled Commitment Termination Date pursuant to Section 2.17, then (in the
case of clause (i)) within 60 days after such demand (if, but only if, such
payment demanded under Section 2.11(a), 2.11(b) or 2.14 has been made by the
applicable Borrower), or (in the case of clause (ii)) within 60 days after such
notice (if such suspension is still in effect), or (in the case of clause (iii))
no later than five days prior to the then effective scheduled Commitment
Termination Date, as the case may be, the Borrowers may demand that such Lender
assign in accordance with this Section 8.07 to one or more Eligible Assignees
designated by the Borrowers and reasonably acceptable to the Administrative
Agent all (but not less than all) of such Lender's Commitment, the Advances
owing to it and its participation in the Facility LCs within the next succeeding
30 days (in the case of clause (i) or clause (ii)), or within the next
succeeding five days (in the case of clauses (iii)). If any such Eligible
Assignee designated by the Borrowers shall fail to consummate such assignment on
terms acceptable to such Lender, or if the Borrowers shall fail to designate any
such Eligible Assignee for all of such Lender's Commitment, Advances and
participation in Facility LCs, then such Lender may (but shall not be required
to) assign such Commitment and Advances to any other Eligible Assignee in
accordance with this Section 8.07 during such period.

            (h) Notwithstanding anything to the contrary contained herein, any
Lender (a "Granting Bank") may grant to a special purpose funding vehicle (an
"SPC"), identified as such in writing from time to time by the Granting Bank to
the Administrative Agent and the Borrowers, the option to provide to any
Borrower all or any part of any Advance that such Granting Bank would otherwise
be obligated to make to such Borrower pursuant to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any SPC to make any Advance,
(ii) if an SPC elects not to exercise such option or otherwise fails to provide
all or any part of such Advance, the Granting Bank shall be obligated to make
such Advance pursuant to the terms hereof. The making of an Advance by an SPC
hereunder shall utilize the Commitment of the Granting Bank to the same extent,
and as if, such Advance were made by such Granting Bank. Each party hereto
hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the
Granting Bank). In furtherance of the foregoing, each party hereto hereby agrees
(which agreement shall survive the termination of this Agreement) that, prior to
the date

                                       47
<PAGE>
that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPC, it will not institute
against, or join any other person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under the laws of the United States or any State thereof. In addition,
notwithstanding anything to the contrary contained in this Section 8.07, any SPC
may (i) with notice to, but without the prior written consent of, the Borrower
and the Administrative Agent and without paying any processing fee therefor,
assign all or a portion of its interests in any Advances to the Granting Bank or
to any financial institutions (consented to by such Borrower and Administrative
Agent, neither of which consents shall be unreasonably withheld or delayed)
providing liquidity and/or credit support to or for the account of such SPC to
support the funding or maintenance of Advances and (ii) disclose on a
confidential basis any non-public information relating to its Advances to any
rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPC. This Section 8.07(g) may not be
amended in any manner which adversely affects a Granting Bank or an SPC without
the written consent of such Granting Bank or SPC.

      SECTION 8.08 Governing Law. THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF
PENNSYLVANIA.

      SECTION 8.09 Consent to Jurisdiction; Certain Waivers. (a) THE BORROWERS
HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE
COMMONWEALTH OF PENNSYLVANIA AND ANY UNITED STATES DISTRICT COURT SITTING IN THE
COMMONWEALTH OF PENNSYLVANIA IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE NOTES AND THE BORROWERS HEREBY IRREVOCABLY
AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVE ANY OBJECTION THEY MAY NOW OR
HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN
SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL
LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO BRING PROCEEDINGS
AGAINST ANY BORROWER IN THE COURTS OF ANY OTHER JURISDICTION.

            (b) EXCEPT AS PROHIBITED BY LAW, EACH PARTY HERETO HEREBY WAIVES ANY
RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE NOTES ANY SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES.

      SECTION 8.10 Execution in Counterparts; Integration. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. This Agreement constitutes the entire agreement and understanding
among the parties hereto and supersedes all prior and contemporaneous agreements
and understandings, oral or written, relating to the subject matter hereof.

                                       48
<PAGE>
      SECTION 8.11 Liability Several. No Borrower shall be liable for the
obligations of any other Borrower hereunder.

      SECTION 8.12 Termination of Existing Agreement; Existing Letters of
Credit. Exelon, ComEd, PECO, the Lenders which are parties to the Existing
Agreement (which Lenders constitute the "Majority Lenders" as defined in the
Existing Agreement) and Bank One, as Administrative Agent under the Existing
Agreement, agree that, concurrently with the making of the initial Loans
hereunder, (a) the commitments under the Existing Agreement shall terminate and
be of no further force or effect (without regard to any requirement in Section
2.04 of the Existing Agreement for prior notice of termination of the
commitments thereunder), (b) the "Facility LCs" issued under the Existing
Agreement for the account of Exelon and PECO (the "Existing Letters of Credit")
shall be deemed to be Facility LCs hereunder and (c) the "Facility LCs" issued
under the Existing Agreement for the account of ComEd (the "ComEd Letters of
Credit") shall be deemed to have been issued by Bank One for its own account.
The parties hereto agree that (i) concurrently with the making of the initial
Loans hereunder, the Existing Letters of Credit shall be deemed to be Facility
LCs hereunder as if the Existing Letters of Credit were issued hereunder on the
Closing Date and (ii) on the first date on which all conditions precedent to the
initial Credit Extension to ComEd (including the condition precedent set forth
in Section 3.04) have been satisfied and no Event of Default or Unmatured Event
of Default exists (and subject to availability under the ComEd Sublimit), the
ComEd Letters of Credit shall be deemed to be Facility LCs hereunder as if the
ComEd Letters of Credit had been issued hereunder on such date.

                [Remainder of the page intentionally left blank]

                                       49
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                        EXELON CORPORATION

                                        By: ____________________________________
                                                      J. Barry Mitchell
                                                 Vice President & Treasurer

                                        COMMONWEALTH EDISON COMPANY

                                        By: ____________________________________
                                                      J. Barry Mitchell
                                                 Vice President & Treasurer

                                        PECO ENERGY COMPANY

                                        By: ____________________________________
                                                      J. Barry Mitchell
                                                 Vice President & Treasurer

                                        EXELON GENERATION COMPANY LLC

                                        By: ____________________________________
                                                      J. Barry Mitchell
                                                  Vice President & Treasurer

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                       S-1
<PAGE>
                                   THE LENDERS

COMMITMENT AMOUNT

$113,500,000                            BANK ONE, NA (Main Office Chicago),
                                        as Administrative Agent, as LC  Issuer
                                        and as a Lender

                                        By: ____________________________________
                                            Name: Madeline Pember
                                            Title: Authorized Agent

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                       S-2
<PAGE>
COMMITMENT AMOUNT

$113,500,000                           BARCLAYS BANK PLC,
                                       as Co-Documentation Agent and as a Lender

                                       By: _____________________________________
                                           Name: _______________________________
                                           Title: ______________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                       S-3
<PAGE>
COMMITMENT AMOUNT

$113,500,000                            FIRST UNION NATIONAL BANK,
                                        as Co-Syndication Agent and as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                       S-4
<PAGE>
COMMITMENT AMOUNT

$113,500,000                            CITIBANK, N.A., as Co-Syndication Agent
                                        and as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                       S-5
<PAGE>
COMMITMENT AMOUNT

$113,500,000                            ABN AMRO BANK N.V., as Co-Documentation
                                        Agent and as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                       S-6
<PAGE>
COMMITMENT AMOUNT

$113,500,000                            THE BANK OF NOVA SCOTIA, as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                       S-7
<PAGE>
COMMITMENT AMOUNT

$57,000,000                             THE BANK OF NEW YORK, as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                       S-8
<PAGE>
COMMITMENT AMOUNT

$57,000,000                             MELLON BANK, N.A., as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                       S-9
<PAGE>
COMMITMENT AMOUNT

$75,000,000                             BAYERISCHE LANDESBANK
                                        GIROZENTRALE, CAYMAN ISLANDS
                                        BRANCH, as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                      S-10
<PAGE>
COMMITMENT AMOUNT

$113,500,000                            JPMORGAN CHASE BANK, as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                      S-11
<PAGE>
COMMITMENT AMOUNT

$113,500,000                            BNP PARIBAS, as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                      S-12
<PAGE>
COMMITMENT AMOUNT

$57,000,000                             THE NORTHERN TRUST COMPANY, as a
                                        Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                      S-13
<PAGE>
COMMITMENT AMOUNT

$112,500,000                            BAYERISCHE HYPO- UND VEREINSBANK AG,
                                        NEW YORK BRANCH, as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                      S-14
<PAGE>
COMMITMENT AMOUNT

$114,000,000                            AUSTRALIA AND NEW ZEALAND BANKING
                                        GROUP LIMITED, as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                      S-15
<PAGE>
COMMITMENT AMOUNT

$62,500,000                             SUMITOMO MITSUI BANKING
                                        CORPORATION, as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                      S-16
<PAGE>
COMMITMENT AMOUNT

$57,000,000                             DRESDNER BANK AG, NEW YORK AND
                                        GRAND CAYMAN BRANCHES, as a Lender

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

This is a signature page to the 364-Day Credit Agreement dated as of December
12, 2001 among Exelon Corporation, Commonwealth Edison Company, Exelon
Generation LLC and PECO Energy Company as Borrowers, various financial
institutions, as Lenders, Bank One, NA, as Administrative Agent, ABN AMRO Bank,
N.V. and Barclays Bank plc, as Co-Documentation Agents, and Citibank, N.A. and
First Union National Bank, as Co-Syndication Agents.

                                      S-17
<PAGE>
                                   SCHEDULE I

364-Day Credit Agreement dated as of December 12, 2001, among Exelon
Corporation, Commonwealth Edison Company, Exelon Generation Company, LLC and
PECO Energy Company, as Borrowers, various financial institutions, as Lenders,
Bank One, NA, as Administrative Agent, ABN AMRO Bank, N.V. and Barclays Bank
plc, as Co-Documentation Agents, and Citibank, N.A. and First Union National
Bank, as Co-Syndication Agents.

<TABLE>
<CAPTION>
                                                               Eurodollar
Name of Lender                Domestic Lending Office          Lending Office
--------------                -----------------------          --------------
<S>                           <C>                              <C>
Bank One, NA                  1 Bank One Plaza                 Same
                              Mail Suite 0634, 1FNP-10
                              Chicago, IL 60670
                              Attn: Gwendolyn Watson
                              Phone: (312) 732-4509
                              Fax: (312) 732-4840

Citibank, N.A.                399 Park Avenue                  Same
                              New York, NY 10043
                              Attn: Robert J. Harrity, Jr.
                              Phone: (212) 816-8554
                              Fax: (212) 816-8098

First Union National Bank     1 First Union Center             Same
                              301 S. College St.
                              Charlotte, NC 28288
                              Attn: Robert Wetteroff
                              Phone: (704) 374-6221
                              Fax: (704) 374-6249

ABN AMRO Bank N.V.            208 South LaSalle Street         Same
                              Suite 1500
                              Chicago, IL 60604-1003
                              Attn: Ken Keck
                              Phone: (312) 992-5110
                              Fax: (312) 992-5111

Barclays Bank plc             222 Broadway, 8th Floor          Same
                              New York, NY 10038
                              Attn: Sydney Dennis
                              Phone: (212) 412-2470
                              Fax: (212) 412-7511

The Bank of New York          One Wall St., 19th Floor         Same
                              New York, NY 10286
                              Attn: John Watt
                              Phone: (212) 635-7533
                              Fax: (212) 635-7923
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                               Eurodollar
Name of Lender                Domestic Lending Office          Lending Office
--------------                -----------------------          --------------
<S>                           <C>                              <C>
Mellon Bank, N.A.             One Mellon Bank Center           Same
                              Room 4530
                              Pittsburgh, PA 15258-0001
                              Attn: Richard A. Matthews
                              Phone: (412) 234-9759
                              Fax: (412) 236-1840

Bayerische Landesbank         560 Lexington Ave, 17th Floor    Same
Girozentrale, Cayman          New York, NY 10022
Islands Branch                Attn: Sean O'Sullivan
                              Phone: (212) 310-9913
                              Fax: (212) 310-9868

JPMorgan Chase Bank           270 Park Avenue                  Same
                              New York, NY 10017
                              Attn: Peter Ling
                              Phone: (212) 270-4676
                              Fax: (212) 270-3089

Australia and New Zealand     1177 Avenue of the Americas      Same
Banking Group Limited         6th Floor
                              New York, NY 10036
                              Attn:  Arlene Esin
                              Phone: (212) 801-9827
                              Fax: (212) 536-9278

The Northern Trust Company    50 S. LaSalle St.                Same
                              Chicago, IL 60675
                              Attn: Nicole Boehm
                              Phone: (312) 444-3640
                              Fax: (312) 630-6062

The Bank of Nova Scotia       600 Peachtree Street,            Same
                              Suite 2700
                              Atlanta, GA 30308
                              Attn: John Malloy
                              Phone: (312) 201-4111
                              Fax: (312) 201-4108

BNP Paribas                   787 Seventh Avenue,              Same
                              31st Floor
                              New York, NY 10019
                              Attn: Sean Finnegan
                              Phone: (212) 841-2310
                              Fax: (212) 841-2203
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                               Eurodollar
Name of Lender                Domestic Lending Office          Lending Office
--------------                -----------------------          --------------
<S>                           <C>                              <C>
Bayerische Hypo- und          150 East 42nd Street             Same
Vereinsbank AG, New           New York, NY 10017
York Branch                   Attn: William Hunter
                              Phone: (212) 672-5340
                              Fax: (212) 672-5530

Sumitomo Mitsui Banking       277 Park Ave.                    Same
Corporation                   New York, NY 10172
                              Attn: David Buck
                              Phone: (212) 224-4168
                              Fax: (212) 224-4042

Dresdner Bank AG              75 Wall St., 25th Floor          Same
                              New York, NY 10005-2889
                              Attn: Fred C. Thurston
                              Phone: (212) 429-2029
                              Fax: (212) 429-2192
</TABLE>
<PAGE>
                                   SCHEDULE II
                                PRICING SCHEDULE

      The "Applicable Margin," the "Facility Fee Rate" the "Utilization Fee
Rate" and the "LC Fee Rate" for any day are the respective percentages set forth
below in the applicable row under the column corresponding to the Status that
exists on such day:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
               Applicable Margin
 Status         and LC Fee Rate      Facility Fee Rate      Utilization Fee Rate
--------------------------------------------------------------------------------
<S>            <C>                   <C>                    <C>
Level I             0.400%                 0.100%                  0.100%
--------------------------------------------------------------------------------
Level II            0.500%                 0.125%                  0.125%
--------------------------------------------------------------------------------
Level III           0.600%                 0.150%                  0.125%
--------------------------------------------------------------------------------
Level IV            0.825%                 0.175%                  0.125%
--------------------------------------------------------------------------------
Level V             0.925%                 0.200%                  0.250%
--------------------------------------------------------------------------------
</TABLE>

      The Applicable Margin, the Facility Fee Rate, the Utilization Fee Rate and
the LC Fee Rate shall be determined separately for each Borrower in accordance
with the foregoing table based on the Status for such Borrower. The Status in
effect for any Borrower on any date for the purposes of this Pricing Schedule is
based on the Moody's Rating and the S&P Rating in effect at the close of
business on such date.

      For the purposes of the foregoing (but subject to the final paragraph of
this Pricing Schedule):

      "Level I Status" exists at any date for a Borrower if, on such date, such
Borrower's Moody's Rating is A3 or better or such Borrower's S&P Rating is A- or
better.

      "Level II Status" exists at any date for a Borrower if, on such date, (i)
Level I Status does not exist for such Borrower and (ii) such Borrower's Moody's
Rating is Baa1 or better or such Borrower's S&P Rating is BBB+ or better.

      "Level III Status" exists at any date for a Borrower if, on such date, (i)
neither Level I Status nor Level II Status exists for such Borrower and (ii)
such Borrower's Moody's Rating is Baa2 or better or such Borrower's S&P Rating
is BBB or better.

      "Level IV Status" exists at any date if, on such date, (i) none of Level I
Status, Level II Status or Level III Status exists for such Borrower and (ii)
such Borrower's Moody's Rating is Baa3 or better or such Borrower's S&P Rating
is BBB- or better.

      "Level V Status" exists at any date for a Borrower if, on such date, none
of Level I Status, Level II Status, Level III Status or Level IV Status exists
for such Borrower.

      "Status" means Level I Status, Level II Status, Level III Status, Level IV
Status or Level V Status.
<PAGE>
If the S&P Rating and the Moody's Rating for a Borrower create a split-rated
situation and the ratings differential is one level, the higher rating will
apply. If the differential is two levels or more, the intermediate rating at the
midpoint will apply. If there is no midpoint, the higher of the two intermediate
ratings will apply. If a Borrower has no Moody's Rating or no S&P Rating, Level
V Status shall exist for such Borrower.
<PAGE>
<TABLE>
<S>                                                                           <C>
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS..................................   1

       Section 1.01      Certain Defined Terms..............................   1

       Section 1.02      Computation of Time Periods........................  12

       Section 1.03      Accounting Principles..............................  12

       Section 1.04      Section References.................................  12

ARTICLE II AMOUNTS AND TERMS OF THE COMMITMENTS.............................  12

       Section 2.01      Commitments........................................  12

       Section 2.02      Procedures for Advances; Limitations on Borrowings.  13

       Section 2.03      Facility and Utilization Fees......................  14

       Section 2.04      Reduction of Commitment Amounts; Adjustment of
                         Sublimits..........................................  14

       Section 2.05      Repayment of Advances..............................  15

       Section 2.06      Interest on Advances...............................  15

       Section 2.07      Additional Interest on Eurodollar Advances.........  16

       Section 2.08      Interest Rate Determination........................  16

       Section 2.09      Continuation and Conversion of Advances............  17

       Section 2.10      Prepayments........................................  17

       Section 2.11      Increased Costs....................................  18

       Section 2.12      Illegality.........................................  19

       Section 2.13      Payments and Computations..........................  20

       Section 2.14      Taxes..............................................  21

       Section 2.15      Sharing of Payments, Etc...........................  23

       Section 2.16      Facility LCs.......................................  24

       Section 2.17      Extension of Commitment Termination Date...........  27

ARTICLE III CONDITIONS TO CREDIT EXTENSIONS.................................  28

       Section 3.01      Conditions Precedent to Initial Credit Extensions..  28

       Section 3.02      Conditions Precedent to All Credit Extensions......  29

       Section 3.03      Additional Conditions Precedent to Initial Credit
                         Extension to Genco.................................  29

       Section 3.04      Additional Condition Precedent to Initial Credit
                         Extension to ComEd.................................  29

ARTICLE IV REPRESENTATIONS AND WARRANTIES...................................  30

       Section 4.01      Representations and Warranties of the Borrowers....  30
</TABLE>
<PAGE>
<TABLE>
<S>                                                                           <C>
ARTICLE V COVENANTS OF THE BORROWERS........................................  32

       Section 5.01      Affirmative Covenants..............................  32

       Section 5.02      Negative Covenants.................................  35

ARTICLE VI EVENTS OF DEFAULT................................................  37

       Section 6.01      Events of Default..................................  37

ARTICLE VII THE AGENTS......................................................  39

       Section 7.01      Authorization and Action...........................  39

       Section 7.02      Agents' Reliance, Etc..............................  40

       Section 7.03      Agents and Affiliates..............................  40

       Section 7.04      Lender Credit Decision.............................  40

       Section 7.05      Indemnification....................................  41

       Section 7.06      Successor Administrative Agent.....................  41

       Section 7.07      Co-Documentation Agents, Co-Syndication Agents
                         and Lead Arranger..................................  41

ARTICLE VIII MISCELLANEOUS..................................................  42

       Section 8.01      Amendments, Etc....................................  42

       Section 8.02      Notices, Etc.......................................  42

       Section 8.03      No Waiver; Remedies................................  42

       Section 8.04      Costs and Expenses; Indemnification................  43

       Section 8.05      Right of Set-off...................................  44

       Section 8.06      Binding Effect.....................................  44

       Section 8.07      Assignments and Participations.....................  44

       Section 8.08      Governing Law......................................  48

       Section 8.09      Consent to Jurisdiction; Certain Waivers...........  48

       Section 8.10      Execution in Counterparts; Integration.............  48

       Section 8.11      Liability Several..................................  49

       Section 8.12      Termination of Existing Agreement..................  49
</TABLE>
<PAGE>
Schedule I         List of Applicable Lending Offices

Schedule II        Pricing Schedule

Exhibit A          Form of Note

Exhibit B          Form of Notice of Borrowing

Exhibit C          Form of Assignment and Acceptance

Exhibit D-1        Form of Opinion of Special Counsel for the Borrowers

Exhibit D-2        Form of Opinion of Special Counsel for ComEd

Exhibit E          Form of Annual and Quarterly Compliance Certificate<PAGE>
                                                                   Exhibit 4-2-1
================================================================================

                               PECO ENERGY COMPANY

                                       TO

                       FIRST UNION NATIONAL BANK, TRUSTEE

                             ----------------------

                           NINETY-SEVENTH SUPPLEMENTAL
                              INDENTURE DATED AS OF
                                OCTOBER 15, 2001

                                       TO

                          FIRST AND REFUNDING MORTGAGE

                                       OF

                          THE COUNTIES GAS AND ELECTRIC
                                     COMPANY

                                       TO

                         FIDELITY TRUST COMPANY, TRUSTEE
                                DATED MAY 1, 1923

                               ------------------

                              5.95% SERIES DUE 2011

================================================================================

<PAGE>

        THIS SUPPLEMENTAL INDENTURE dated as of October 15, 2001, by and between
PECO ENERGY COMPANY, a corporation organized and existing under the laws of the
Commonwealth of Pennsylvania (hereinafter called the Company), party of the
first part, and FIRST UNION NATIONAL BANK, a national banking association
organized and existing under the laws of the United States of America
(hereinafter called the Trustee), as Trustee under the Mortgage hereinafter
mentioned, party of the second part, Witnesseth that

        WHEREAS, The Counties Gas and Electric Company (hereinafter called
Counties Company), a Pennsylvania corporation and a predecessor to the Company,
duly executed and delivered to Fidelity Trust Company, a Pennsylvania
corporation to which the Trustee is successor, as Trustee, a certain indenture
of mortgage and deed of trust dated May 1, 1923 (hereinafter called the
Mortgage), to provide for the issue of, and to secure, its First and Refunding
Mortgage Bonds, issuable in series and without limit as to principal amount
except as provided in the Mortgage, the initial series of Bonds being designated
the 6% Series of 1923, and the terms and provisions of other series of bonds
secured by the Mortgage to be determined as provided in the Mortgage; and

        WHEREAS, thereafter Counties Company, Philadelphia Suburban-Counties Gas
and Electric Company (hereinafter called Suburban Company), and the Company,
respectively, have from time to time executed and delivered indentures
supplemental to the Mortgage, providing for the creation of additional series of
bonds secured by the Mortgage and for amendment of certain of the terms and
provisions of the Mortgage and of indentures supplemental thereto, or evidencing
the succession of Suburban Company to Counties Company and of the Company to
Suburban Company, such indentures supplemental to the Mortgage, the respective
dates, parties thereto, and purposes thereof, being as follows:

                                       1
<PAGE>

<TABLE>
<CAPTION>
Supplemental Indenture
       and Date                      Parties                                     Providing for:
----------------------               -------                                     -------------
<S>                          <C>                                             <C>

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

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

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

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

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

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

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

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

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

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

                                       2
<PAGE>

<TABLE>
<CAPTION>
Supplemental Indenture
       and Date                      Parties                                     Providing for:
----------------------               -------                                     -------------
<S>                           <C>                                            <C>

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       3
<PAGE>

<TABLE>
<CAPTION>
Supplemental Indenture
       and Date                      Parties                                     Providing for:
----------------------               -------                                     -------------
<S>                          <C>                                             <C>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       4
<PAGE>

<TABLE>
<CAPTION>
Supplemental Indenture
       and Date                      Parties                                     Providing for:
----------------------               -------                                     -------------
<S>                          <C>                                             <C>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       5
<PAGE>

<TABLE>
<CAPTION>
Supplemental Indenture
       and Date                      Parties                                     Providing for:
----------------------               -------                                     -------------
<S>                          <C>                                             <C>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       6
<PAGE>

<TABLE>
<CAPTION>
Supplemental Indenture
       and Date                      Parties                                     Providing for:
----------------------               -------                                     -------------
<S>                          <C>                                             <C>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       7
<PAGE>

<TABLE>
<CAPTION>
Supplemental Indenture
       and Date                      Parties                                     Providing for:
----------------------               -------                                     -------------
<S>                           <C>                                            <C>

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

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

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

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

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

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

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

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

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

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

Ninety-sixth                  Company to First Fidelity Bank,                Medium Term Note Series B*
      May 1, 1995             N.A., Pennsylvania
</TABLE>

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

                                       8
<PAGE>

        WHEREAS, the respective principal amounts of the bonds of each series
presently outstanding under the Mortgage and the several supplemental indentures
above referred to, are as follows:

<TABLE>
<CAPTION>
                                                                                           PRINCIPAL
                                              Series                                         AMOUNT
                                              ------                                         ------
<S>                                                                                   <C>
5-5/8%    Series due 2001...............................................................$250,000,000
8%        Series due 2002.................................................................41,636,000
7-1/8%    Series due 2002................................................................175,000,000
7-1/2%    Series due 2002..................................................................5,280,000
6-5/8%    Series due 2003................................................................250,000,000
6-1/2%    Series due 2003................................................................200,000,000
6-3/8%    Series due 2005.................................................................75,000,000
Pollution Control Series J due 2012.......................................................50,000,000
Pollution Control Series K due 2012.......................................................50,000,000
Pollution Control Series L due 2012.......................................................50,000,000
Pollution Control Series M due 2012........................................................4,200,000
6-5/8% Pollution Control Series I due 2022................................................29,530,000
                                                                                          ----------
                                                   Total   $...........................$1,180,646,000
                                                                                        =============
</TABLE>

and

        WHEREAS, the Company deems it advisable and has determined, pursuant to
Article XI of the Mortgage,

        (a)     to convey, pledge, transfer and assign to the Trustee and to
subject specifically to the lien of the Mortgage additional property not therein
or in any supplemental indenture specifically described but now owned by the
Company and acquired by it by purchase or otherwise; and

        (b)     to create a new series of bonds to be issued from time to time
under, and secured by, the Mortgage, to be designated PECO Energy Company First
and Refunding Mortgage Bonds, 5.95% Series Due 2011, (hereinafter sometimes
called the "bonds of the New Series" or the "bonds of the 5.95% Series due
2011"); and for the above-mentioned purposes to execute, deliver and record this
Supplemental Indenture; and

        WHEREAS, the Company has determined by proper corporate action that the
terms, provisions and form of the bonds of the New Series shall be substantially
as follows:

                                       9

<PAGE>

                             (Form of Face of Bond)

                               PECO ENERGY COMPANY

REGISTERED                                                            REGISTERED
NUMBER

                       FIRST AND REFUNDING MORTGAGE BOND,
                             5.95% SERIES DUE 2011,
                              DUE NOVEMBER 1, 2011

        PECO Energy Company, a Pennsylvania corporation (hereinafter called the
Company), for value received, hereby promises to pay to                       or
registered assigns,

Dollars on November 1, 2011, at the office or agency of the Company, in the City
of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or
agency of the Company, in the Borough of Manhattan, The City of New York, in
such coin or currency of the United States of America as at the time of payment
shall constitute legal tender for the payment of public and private debts, and
to pay interest (computed on the basis of a 360-day year of twelve 30-day
months) thereon from the date hereof at the rate of 5.95 percent per annum in
like coin or currency, payable at either of the offices aforesaid on May 1 and
November 1 in each year until the Company's obligation with respect to the
payment of such principal shall have been discharged; provided, however, that if
(i) on or prior to the 360th day following the original issue date of the bonds
of this series, neither (x) an exchange offer (the "Exchange Offer") registered
pursuant to the Company's registration statement (the "Exchange Registration
Statement") under the Securities Act of 1933, as amended (the "Securities Act"),
registering a security substantially identical to this bond (except that such
security will not contain terms with respect to the Special Interest payments
described below or transfer restrictions) has been consummated nor (y) if
applicable, in lieu thereof, a registration statement registering this bond for
resale (a "Resale Registration Statement") has become or declared effective; or
(ii) either the Exchange Registration Statement or, if applicable, the Resale
Registration Statement is filed and declared effective (except as specifically
permitted therein), but shall thereafter cease to be effective without being
succeeded promptly by an additional registration statement filed and declared
effective, in each case (i) and (ii) upon the terms and conditions set forth in
the Registration Rights Agreement (each such event referred to in clauses (i)
and (ii), a "Special Interest Payment Event"), then additional interest will
accrue (in addition to the interest stated above) (the "Step-Up") from the date
of such Special Interest Payment Event at a rate of 0.50% per annum, determined
daily, on the principal amount hereof, and such additional interest shall be
payable until such time (the "Step Down Date") as no Special Interest Payment
Event is in effect or the first date the bonds of this series become freely
tradable under rule 144(k) of the Securities Act. Interest accruing as a result
of the Step-Up (which shall be computed on the basis of a 365-day year and the
actual number of days elapsed) is referred to herein as "Special Interest."
Accrued Special Interest, if any, shall be paid semi-annually on May 1 and
November 1 in each year. Any accrued and unpaid interest (including Special
Interest) on this bond upon the issuance of an Exchange Security (as defined in
the Registration Rights Agreement) in

                                       10
<PAGE>

exchange for this bond shall cease to be payable to the holder hereof but such
accrued and unpaid interest (including Special Interest) shall be payable on the
next interest payment date for such Exchange Security to the holder thereof on
the related record date. Both such principal and interest are payable less
deduction for any taxes, assessments or governmental charges assessed against
this bond or the interest hereon or any owner or holder hereof which the
Company, the Trustee under the Mortgage referred to on the reverse hereof or any
paying agent is or may be required to collect or withhold under any present or
future law of the United States of America, or any state and/or of any county,
municipality, taxing authority or political subdivision thereof.

        "Registration Rights Agreement" means an agreement by and among the
Company and the initial purchasers of the bonds of this series regarding the
Company's obligation to (1) complete the Exchange Offer and (2) register the
resale of the bonds of this series with the Securities and Exchange Commission.

        The Company may fix a date, not more than fourteen calendar days prior
to any interest payment date, as a record date for determining the registered
holder of this bond entitled to such interest payment, in which case only the
registered holder on such record date shall be entitled to receive such payment,
notwithstanding any transfer of this bond upon the registration books subsequent
to such record date.

        This bond shall not be valid or become obligatory for any purpose unless
it shall have been authenticated by the certificate of the Trustee under said
Mortgage endorsed hereon.

        The provisions of this bond are continued on the reverse hereof and such
continued provisions shall for all purposes have the same effect as though fully
set forth at this place.

        IN WITNESS WHEREOF, PECO Energy Company has caused this instrument to be
signed in its corporate name with the manual or facsimile signature of its
President or a Vice President and its corporate seal to be impressed or a
facsimile imprinted hereon, duly attested by the manual or facsimile signature
of its Secretary or an Assistant Secretary.

Dated:

                                        PECO ENERGY COMPANY

                                        By
                                          --------------------------------------

                                                         President

(SEAL)

                                        Attest:
                                               ---------------------------------

                                                          Secretary

                                       11
<PAGE>

                            (Form of Reverse of Bond)

                               PECO ENERGY COMPANY
                       First and Refunding Mortgage Bond,
                   5.95% Series Due 2011, Due November 1, 2011

                                   (CONTINUED)

        This bond is one of a duly authorized issue of bonds of the Company,
unlimited as to amount except as provided in the Mortgage hereinafter mentioned
or in any indenture supplemental thereto, and is one of a series of said bonds
known as First and Refunding Mortgage Bonds, 5.95% Series due 2011. This bond
and all other bonds of said issue are issued and to be issued under and pursuant
to and are all secured equally and ratably by an indenture of mortgage and deed
of trust dated May 1, 1923, duly executed and delivered by The Counties Gas and
Electric Company (to which the Company is successor) to Fidelity Trust Company,
as Trustee (to which First Union National Bank, a national banking association
organized and existing under the laws of the United States of America, is
successor Trustee), as amended, modified or supplemented by ninety-seven certain
supplemental indentures from the Company or its predecessors to said successor
Trustee or its predecessors, said mortgage, as so amended, modified or
supplemented being herein called the Mortgage. Reference is hereby made to the
Mortgage for a statement of the property mortgaged and pledged, the nature and
extent of the security, the rights of the holders of said bonds and of the
Trustee in respect of such security, the rights, duties and immunities of the
Trustee, and the terms and conditions upon which said bonds are and are to be
secured, and the circumstances under which additional bonds may be issued.

        As provided in the Mortgage, the bonds secured thereby may be for
various principal sums and are issuable in series, which series may mature at
different times, may bear interest at different rates, and may otherwise vary.
The bonds of this series mature on November 1, 2011, and are issuable only in
registered form without coupons in any denomination authorized by the Company.

        Any bond or bonds of this series may be exchanged for another bond or
bonds of this series in a like aggregate principal amount in authorized
denominations, upon presentation at the office of the Trustee in the City of
Philadelphia, Pennsylvania, or, at the option of the holder, at the office or
agency of the Company in the Borough of Manhattan, The City of New York, all
subject to the terms of the Mortgage but without any charge other than a sum
sufficient to reimburse the Company for any stamp tax or other governmental
charge incident to the exchange.

        The bonds of this series are redeemable at the option of the Company, as
a whole or in part, at any time upon notice sent by the Company through the
mail, postage prepaid, at least thirty (30) days and not more than forty-five
(45) days prior to the date fixed for redemption, to the registered holder of
each bond to be redeemed, addressed to such holder at his address appearing upon
the registration books, at a redemption price equal to the greater of (1) 100%
of the principal amount of the bonds to be redeemed, plus accrued interest to
the redemption date, or (2) as determined by the Quotation Agent, the sum of the
present values of the remaining scheduled payments of principal and interest on
the bonds to be redeemed (not including any

                                       12
<PAGE>

portion of payments of interest accrued as of the redemption date) discounted to
the redemption date on a semi-annual basis (assuming a 360-day year consisting
of twelve 30-day months) at the Adjusted Treasury Rate plus 30 basis points,
plus accrued interest to the redemption date. Unless the Company defaults in
payment of the redemption price, on and after the redemption date, interest will
cease to accrue on the bonds of this series or portions of the bonds of this
series called for redemption.

        "Adjusted Treasury Rate" means, with respect to any redemption date, the
rate per year equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for the redemption date.

        "Business Day" means any day that is not a day on which banking
institutions in New York City are authorized or required by law or regulation to
close.

        "Comparable Treasury Issue" means the United States Treasury security
selected by the Quotation Agent as having a maturity comparable to the remaining
term of the bonds of this series that would be used, at the time of selection
and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
bonds of this series.

        "Comparable Treasury Price" means, with respect to any redemption date:

        -       the average of the Reference Treasury Dealer Quotations for that
                redemption date, after excluding the highest and lowest of the
                Reference Treasury Dealer Quotations; or

        -       if the Trustee obtains fewer than three Reference Treasury
                Dealer Quotations, the average of all Reference Treasury Dealer
                Quotations so received.

        "Quotation Agent" means the Reference Treasury Dealer appointed by the
Company.

        "Reference Treasury Dealer" means (1) each of Merrill Lynch, Pierce,
Fenner & Smith Incorporated and First Union Securities, Inc. and their
respective successors, unless any of them ceases to be a primary U.S. Government
securities dealer in New York City (a "Primary Treasury Dealer"), in which case
the Company shall substitute another Primary Treasury Dealer; and (2) any other
Primary Treasury Dealer selected by the Company.

        "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third business day preceding that redemption date.

        The principal of this bond may be declared or may become due on the
conditions, in the manner and with the effect provided in the Mortgage upon the
happening of an event of default as in the Mortgage provided.

                                       13
<PAGE>

        This bond is transferable by the registered holder hereof in person or
by attorney, duly authorized in writing, at the office of the Trustee in the
City of Philadelphia, Pennsylvania, or, at the option of the holder, at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, in books of the Company to be kept for that purpose, upon surrender and
cancellation hereof, and upon any such transfer, a new registered bond or bonds,
without coupons, of this series and for the same aggregate principal amount,
will be issued to the transferee in exchange herefor, all subject to the terms
of the Mortgage but without payment of any charge other than a sum sufficient to
reimburse the Company for any stamp tax or other governmental charge incident to
the transfer. The Company, the Trustee, and any paying agent may deem and treat
the person in whose name this bond is registered as the absolute owner hereof
for the purpose of receiving payment of or on account of the principal and
interest due hereon and for all other purposes, and neither the Company nor the
Trustee nor any paying agent shall be affected by any notice to the contrary.

        No recourse shall be had for the payment of the principal of or interest
on this bond to any incorporator or any past, present or future stockholder,
officer or director of the Company or of any predecessor or successor
corporation, either directly or indirectly, by virtue of any statute or by
enforcement of any assessment or otherwise, and any and all liability of the
said incorporators, stockholders, officers or directors of the Company or of any
predecessor or successor corporation in respect to this bond is hereby expressly
waived and released by every holder hereof, except to the extent that such
liability may not be waived or released under the provisions of the Securities
Act of 1933 or of the rules and regulations of the Securities and Exchange
Commission thereunder.

                        (End of Form of Reverse of Bond)

                                       14
<PAGE>

and

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

                         (Form of Trustee's Certificate)

        This bond is one of the bonds, of the series designated therein,
provided for in the within-mentioned Mortgage and in the Ninety-Seventh
Supplemental Indenture dated as of October 15, 2001.

                                               FIRST UNION NATIONAL BANK

                                               By
                                                 -------------------------------

                                                            Authorized Officer

and

        WHEREAS, all acts and things necessary to make the bonds of the New
Series, when duly executed by the Company and authenticated by the Trustee as
provided in the Mortgage and indentures supplemental thereto, and issued by the
Company, the valid, binding and legal obligations of the Company, and this
Supplemental Indenture a valid and enforceable supplement to the Mortgage, have
been done, performed and fulfilled and the execution and delivery hereof have
been in all respects duly and lawfully authorized.

        NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

        That in order to secure the payment of the principal of and interest on
all bonds issued and to be issued under the Mortgage and/or under any indenture
supplemental thereto, according to their tenor and effect, and according to the
terms of the Mortgage and of any indenture supplemental thereto, and to secure
the performance of the covenants and obligations in the bonds and in the
Mortgage and any indenture supplemental thereto respectively contained, and for
the proper assuring, conveying, and confirming unto the Trustee, its successors
in trust and its and their assigns forever, upon the trusts and for the purposes
expressed in the Mortgage and in any indentures supplemental thereto, all and
singular the estates, property and franchises of the Company thereby mortgaged
or intended so to be, the Company, for and in consideration of the premises and
of the sum of One Dollar ($1.00) in hand paid by the Trustee to the Company upon
the execution and delivery of this Supplemental Indenture, receipt whereof is
hereby acknowledged, and of other good and valuable consideration, has granted,
bargained, sold, conveyed, released, confirmed, pledged, assigned, transferred
and set over and by these presents does grant, bargain, sell, convey, release,
confirm, pledge, assign, transfer, and set over to First Union National Bank, as
Trustee, and to its successors in trust and its and their assigns forever, all
the following described property, real, personal and mixed of the Company, viz.:

                                       15
<PAGE>

        The real property set forth in Schedule A, attached hereto and hereby
made a part hereof, with any improvements thereon erected now owned by the
Company but not specifically described in the Mortgage or in any indenture
supplemental thereto heretofore executed, in the places set forth in Schedule A.

        Together with all gas works, electric works, plants, buildings,
structures, improvements and machinery located upon such real estate or any
portion thereof, and all rights, privileges and easements of every kind and
nature appurtenant thereto, and all and singular the tenements, hereditaments
and appurtenances belonging to the real estate or any part thereof hereinbefore
described or referred to or intended so to be, or in any way appertaining
thereto, and the reversions, remainders, rents, issues and profits thereof; also
all the estate, right, title, interest, property, possession, claim and demand
whatsoever, as well in law as in equity, of the Company, of, in and to the same
and any and every part thereof, with the appurtenances.

        Also all the Company's electric transmission and distribution lines and
systems, substations, transforming stations, structures, machinery, apparatus,
appliances, devices and appurtenances.

        Also all the Company's gas transmission and distribution mains, pipes,
pipe lines and systems, storage facilities, structures, machinery, apparatus,
appliances, devices and appurtenances.

        Also all plants, systems, works, improvements, buildings, structures,
fixtures, appliances, engines, furnaces, boilers, machinery, retorts, tanks,
condensers, pumps, gas tanks, holders, reservoirs, expansion tanks, gas mains
and pipes, tunnels, service pipe, pipe lines, fittings, gates, valves,
connections, gas and electric meters, generators, dynamos, fans, supplies, tools
and implements, tracks, sidings, motor and other vehicles, all electric light
lines, electric power lines, transmission lines, distribution lines, conduits,
cables, stations, substations, and distributing systems, motors, conductors,
converters, switchboards, shafting, belting, wires, mains, feeders, poles,
towers, mast arms, brackets, pipes, lamps, insulators, house wiring connections
and all instruments, appliances, apparatus, fixtures, fittings and equipment and
all stores, repair parts, materials and supplies of every nature and kind
whatsoever now or hereafter owned by the Company in connection with or
appurtenant to its plants and systems for production, purchase, storage,
transmission, distribution, utilization and sale of gas and its by-products and
residual products, and/or for the generation, production, purchase, storage,
transmission, distribution, utilization and sale of electricity, or in
connection with such business.

        Also all the goodwill of the business of the Company, and all rights,
claims, contracts, leases, patents, patent rights, and agreements, all accounts
receivable, accounts, claims, demands, choses in action, books of account, cash
assets, franchises, ordinances, rights, powers, easements, water rights,
riparian rights, licenses, privileges, immunities, concessions and consents now
or hereafter owned by the Company in connection with or appurtenant to its said
business.

        Also all the right, title and interest of the Company in and to all
contracts for the purchase, sale or supply of gas, and its by-products and
residual products of electricity and electrical energy, now or hereafter entered
into by the Company with the right on the part of the Trustee, upon the
happening of an event of default as defined in the Mortgage as supplemented

                                       16
<PAGE>

by any supplemental indenture, to require a specific assignment of any and all
such contracts, whenever it shall request the Company to make the same.

        Also all rents, tolls, earnings, profits, revenues, dividends and income
arising or to arise from any property now owned, leased, operated or controlled
or hereafter acquired, leased, operated or controlled by the Company and subject
to the lien of the Mortgage and indentures supplemental thereto.

        Also all the estate, right, title and interest of the Company, as
lessee, in and to any and all demised premises under any and all agreements of
lease now or at any time hereafter in force, insofar as the same may now or
hereafter be assignable by the Company.

        Also all other property, real, personal and mixed not hereinbefore
specified or referred to, of every kind and nature whatsoever, now owned, or
which may hereafter be owned by the Company (except shares of stock, bonds or
other securities not now or hereafter specifically pledged under the Mortgage
and indentures supplemental thereto or required to be pledged thereunder by the
provisions of the Mortgage or any indenture supplemental thereto), together with
all and singular the tenements, hereditaments and appurtenances thereunto
belonging or in any way appertaining and the reversions, remainder or
remainders, rents, issues and profits thereof; and also all the estate, right,
title, interest, property, claim and demand whatsoever as well in law as in
equity of the Company of, in and to the same and every part and parcel thereof.

        It is the intention and it is hereby agreed that all property and the
earnings and income thereof acquired by the Company after the date hereof shall
be as fully embraced within the provisions hereof and subject to the lien hereby
created for securing the payment of all bonds, together with the interest
thereon, as if the property were now owned by the Company and were specifically
described herein and conveyed hereby, provided nevertheless, that no shares of
stock, bonds or other securities now or hereafter owned by the Company, shall be
subject to the lien of the Mortgage and indentures supplemental thereto unless
now or hereafter specifically pledged or required to be pledged thereunder by
the provisions of the Mortgage or any indenture supplemental thereto.

        TO HAVE AND TO HOLD, all and singular the property, rights, privileges
and franchises hereby conveyed, transferred or pledged or intended so to be,
including after-acquired property, together with all and singular the
reversions, remainders, rents, revenues, income, issues and profits, privileges
and appurtenances, now or hereafter belonging or in any way appertaining
thereto, unto the Trustee and its successors in the trust hereby created, and
its and their assigns forever;

        IN TRUST NEVERTHELESS, for the equal and pro rata benefit and security
of each and every person or corporation who may be or become the holders of
bonds secured by the Mortgage and indentures supplemental thereto, without
preference, priority or distinction (except as provided in Section 1 of Article
VIII of the Mortgage) as to lien or otherwise of any bond of any series over or
from any other bond, so that (except as aforesaid) each and every of the bonds
issued or to be issued, of whatsoever series, shall have the same right, lien,
privilege under the Mortgage and indentures supplemental thereto and shall be
equally secured thereby and hereby,

                                       17
<PAGE>

with the same effect as if the bonds had all been made, issued and negotiated
simultaneously on the date of the Mortgage.

        AND THIS SUPPLEMENTAL INDENTURE FURTHER WITNESSETH:

        It is hereby covenanted that all bonds secured by the Mortgage and
indentures supplemental thereto with the coupons appertaining thereto, are
issued to and accepted by each and every holder thereof, and that the property
aforesaid and all other property subject to the lien of the Mortgage and
indentures supplemental thereto is held by or hereby conveyed to the Trustee,
under and subject to the trusts, conditions and limitations set forth in the
Mortgage and indentures supplemental thereto and upon and subject to the further
trusts, conditions and limitations hereinafter set forth, as follows, to wit:

                                   ARTICLE I.

                             AMENDMENTS OF MORTGAGE

        Article II of the Ninth Supplemental Indenture to the Mortgage, as
heretofore amended, is hereby further amended as follows:

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

        "or Medium Term Note Series B"

and by inserting in lieu thereof, in both instances, the following:

        ", Medium Term Note Series B or 5.95% Series due 2011"

                                   ARTICLE II.

                             BONDS OF THE NEW SERIES

        Section 1.      The bonds of the New Series shall be designated as
hereinabove specified for such designation in the recital immediately preceding
the form of bonds of the New Series, subject however, to the provisions of
Section 2 of Article I of the Mortgage, as amended, and are issuable only as
registered bonds without coupons, substantially in the form hereinbefore
recited; and the issue thereof shall be limited to $250,000,000 principal
amount.

        The bonds of the New Series shall bear interest from the date thereof
and shall be dated as of the interest payment date to which interest was paid
next preceding the date of issue unless (a) such date of issue is an interest
payment date to which interest was paid, in which event such bonds shall be
dated as of such interest payment date, or (b) issued prior to the occurrence of
the first interest payment date on which interest has been paid, in which event
such bonds shall be dated October 30, 2001. The bonds of the New Series shall
mature on November 1, 2011.

                                       18
<PAGE>

        The bonds of the New Series shall bear interest (computed on the basis
of a 360-day year of twelve 30-day months) at the rate provided in the form of
bond hereinbefore recited, payable on May 1 and November 1 in each year
commencing on May 1, 2002 until the Company's obligation with respect to the
payment of principal thereof shall have been discharged. Both principal and
interest on bonds of the New Series shall be payable at the office or agency of
the Company in the City of Philadelphia, Pennsylvania, or, at the option of the
holder, at the office or agency of the Company in the Borough of Manhattan, The
City of New York, and shall be payable in such coin or currency of the United
States of America as at the time of payment shall constitute legal tender for
the payment of public and private debts.

        The bonds of the New Series shall be in any denomination authorized by
the Company.

        Any bond or bonds of the New Series shall be exchangeable for another
bond or bonds of the New Series in a like aggregate principal amount. Any such
exchange may be made upon presentation at the office of the Trustee in the City
of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or
agency of the Company in the Borough of Manhattan, The City of New York, without
any charge other than a sum sufficient to reimburse the Company for any stamp
tax or other governmental charge incident to the exchange.

        Section 2.      (a)     Initially, the bonds of the New Series shall be
issued pursuant to a book-entry system administered by the Depository Trust
Company (or its successor, referred to herein as the "Depository") as a global
security with no physical distribution of bond certificates to be made except as
provided in this Section 2. Any provisions of the Mortgage or the bonds of the
New Series requiring physical delivery of bonds shall, with respect to any bonds
of the New Series held under the book-entry system, be deemed to be satisfied by
a notation on the bond registration books maintained by the Trustee that such
bonds are subject to the book-entry system.

                (b)     So long as the book-entry system is being used, one bond
of the New Series in the aggregate principal amount of the bonds of the New
Series and registered in the name of the Depository's nominee (the "Nominee")
will be issued and required to be deposited with the Depository and held in its
custody. The book-entry system will be maintained by the Depository and its
participants and indirect participants and will evidence beneficial ownership of
the bonds of the New Series, with transfers of ownership effected on the records
of the Depository, the participants and the indirect participants pursuant to
rules and procedures established by the Depository, the participants and the
indirect participants. The principal of and any premium on each bond of the New
Series shall be payable to the Nominee or any other person appearing on the
registration books as the registered holder of such bond or its registered
assigns or legal representative at the office of the office or agency of the
Company in the City of Philadelphia, Pennsylvania or the Borough of Manhattan,
The City of New York. So long as the book-entry system is in effect, the
Depository will be recognized as the holder of the bonds of the New Series for
all purposes. Transfers of principal, interest and any premium payments or
notices to participants and indirect participants will be the responsibility of
the Depository, and transfers of principal, interest and any premium payments or
notices to beneficial owners will be the responsibility of participants and
indirect participants. No other party will be responsible or liable for such
transfers of payments or notices or for maintaining, supervising or reviewing
such records maintained by the Depository, the participants or the indirect
participants. While the

                                       19
<PAGE>

Nominee or the Depository, as the case may be, is the registered owner of the
bonds of the New Series, notwithstanding any other provisions set forth herein,
payments of principal of, redemption premium, if any, and interest on the bonds
of the New Series shall be made to the Nominee or the Depository, as the case
may be, by wire transfer in immediately available funds to the account of such
holder. Without notice to or consent of the beneficial owners, the Trustee with
the consent of the Company and the Depository may agree in writing to make
payments of principal, redemption price and interest in a manner different from
that set forth herein. In such event, the Trustee shall make payment with
respect to the bonds of the New Series in such manner as if set forth herein.

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

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

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

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

                (g)     The Company and the Trustee shall have no liability for
the failure of any Depository to perform its obligations to any participant, any
indirect participant or any beneficial owner of any bonds of the New Series, and
the Company and the Trustee shall not be liable for the failure of any
participant, indirect participant or other nominee of any beneficial owner or
any bonds of the New Series to perform any obligation that such participant,
indirect participant or other nominee may incur to any beneficial owner of the
bonds of the New Series.

                (h)     Notwithstanding any other provision of the Mortgage, on
or prior to the date of issuance of the bonds of the New Series the Trustee
shall have executed and delivered to the initial Depository a Letter of
Representations governing various matters relating to the Depository and its
activities pertaining to the bonds of the New Series. The terms and provisions

                                       20
<PAGE>

of such Letter of Representations are incorporated herein by reference and, in
the event there shall exist any inconsistency between the substantive provisions
of the said Letter of Representations and any provisions of the Mortgage, then,
for as long as the initial Depository shall serve as depository with respect to
the bonds of the New Series, the terms of the Letter of Representations shall
govern.

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

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

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

        Section 4.      The bonds of the New Series are initially being issued
in reliance on Rule 144A of the Securities Act of 1933, as amended. Accordingly,
the bonds of the New Series shall bear the following legend:

        THIS BOND (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (SECURITIES ACT), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM AND IN ANY EVENT MAY BE SOLD OR OTHERWISE TRANSFERRED ONLY IN
ACCORDANCE WITH THE MORTGAGE COPIES OF WHICH ARE AVAILABLE FOR INSPECTION AT THE
OFFICE OF THE TRUSTEE IN THE CITY OF PHILADELPHIA, PENNSYLVANIA.

        EACH PURCHASER OF THIS BOND IS HEREBY NOTIFIED THAT THE SELLER MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A THEREUNDER. EACH HOLDER OF THIS BOND REPRESENTS TO PECO
ENERGY COMPANY THAT (A) SUCH HOLDER WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER
THIS BOND (WITHOUT THE CONSENT OF PECO ENERGY COMPANY) OTHER THAN (1) TO A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION COMPLYING WITH RULE 144A UNDER
THE SECURITIES ACT, (2) IN ACCORDANCE WITH RULE 144

                                       21
<PAGE>

UNDER THE SECURITIES ACT, (3) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT, SUBJECT, IN THE CASE OF CLAUSES (2) OR
(3), TO THE RECEIPT BY PECO ENERGY COMPANY OF AN OPINION OF COUNSEL OR SUCH
OTHER EVIDENCE ACCEPTABLE TO PECO ENERGY COMPANY THAT SUCH RESALE, PLEDGE OR
TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR
(4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND THAT (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS
BOND OF THE RESALE RESTRICTIONS REFERRED TO HEREIN AND DELIVER TO THE TRANSFEREE
(OTHER THAN A QUALIFIED INSTITUTIONAL BUYER) PRIOR TO THE SALE OF A COPY OF THE
TRANSFER RESTRICTIONS APPLICABLE HERETO (COPIES OF WHICH MAY BE OBTAINED FROM
THE TRUSTEE).

        Section 5.      So long as any of the bonds of the New Series remain
outstanding, the Company shall keep at its office or agency in the Borough of
Manhattan, The City of New York, as well as at the office of the Trustee in the
City of Philadelphia, Pennsylvania, books for the registry and transfer of
outstanding bonds of the New Series, in accordance with the terms and provisions
of the bonds of the New Series and the provisions of Section 8 of Article I of
said Mortgage.

        Section 6.      So long as any bonds of the New Series remain
outstanding, the Company shall maintain an office or agency in the City of
Philadelphia, Pennsylvania, and an office or agency in the Borough of Manhattan,
The City of New York, for the payment upon proper demand of the principal of,
the interest on, or the redemption price of the outstanding bonds of the New
Series, and will from time to time give notice to the Trustee of the location of
such office or agency. In case the Company shall fail to maintain for such
purpose an office or agency in the City of Philadelphia or shall fail to give
such notice of the location thereof, then notices, presentations and demands in
respect of the bonds of the New Series may be given or made to or upon the
Trustee at its office in the City of Philadelphia and the principal of, the
interest on, and the redemption price of said bonds in such event be payable at
said office of the Trustee. All bonds of the New Series when paid shall
forthwith be cancelled.

        Section 7.      The Company may fix a date, not more than fourteen
calendar days prior to any interest payment date, as a record date for
determining the registered holder of each bond of the New Series entitled to
such interest payment, in which case only the registered holder of such bond on
such record date shall be entitled to receive such payment, notwithstanding any
transfer of such bond upon the registration books subsequent to such record
date.

        Section 8.      The bonds of the New Series shall be issued under and
subject to all of the terms and provisions of the Mortgage, of the indentures
supplemental thereto referred to in the recitals hereof and of this Supplemental
Indenture which may be applicable to such bonds or applicable to all bonds
issued under the Mortgage and indentures supplemental thereto.

                                       22
<PAGE>

                                  ARTICLE III.

                           ISSUE AND AUTHENTICATION OF
                             BONDS OF THE NEW SERIES

        In addition to any bonds of any series which may from time to time be
executed by the Company and authenticated and delivered by the Trustee upon
compliance with the provisions of the Mortgage and/or of any indenture
supplemental thereto, bonds of the New Series of an aggregate principal amount
not exceeding $250,000,000 shall forthwith be executed by the Company and
delivered to the Trustee, and the Trustee shall thereupon, whether or not this
Supplemental Indenture shall have been recorded, authenticate and deliver said
bonds to or upon the written order of the President, a Vice President, or the
Treasurer of the Company, under the terms and provisions of paragraph (d) of
Section 3 of Article II of the Mortgage, as amended.

                                   ARTICLE IV.

                           REDEMPTION OF BONDS OF THE
                                   NEW SERIES

        Section 1.      The bonds of the New Series shall be redeemable, at the
option of the Company, as a whole or in part, at any time upon notice sent by
the Company through the mail, postage prepaid, at least thirty (30) days and not
more than forty-five (45) days prior to the date fixed for redemption, to the
registered holder of each bond to be redeemed in whole or in part, addressed to
such holder at his address appearing upon the registration books, at a
redemption price equal to the greater of (1) 100% of the principal amount of the
bonds to be redeemed, plus accrued interest to the redemption date, or (2) as
determined by the Quotation Agent, the sum of the present values of the
remaining scheduled payments of principal and interest on the bonds to be
redeemed (not including any portion of payments of interest accrued as of the
redemption date) discounted to the redemption date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Adjusted
Treasury Rate plus 30 basis points, plus accrued interest to the redemption
date. Unless the Company defaults in payment of the redemption price, on and
after the redemption date, interest will cease to accrue on the bonds of this
series or portions of the bonds of this series called for redemption.

        "Adjusted Treasury Rate" means, with respect to any redemption date, the
rate per year equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for the redemption date.

        "Business Day" means any day that is not a day on which banking
institutions in New York City are authorized or required by law or regulation to
close.

        "Comparable Treasury Issue" means the United States Treasury security
selected by the Quotation Agent as having a maturity comparable to the remaining
term of the bonds of this series that would be used, at the time of selection
and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
bonds of the New Series.

                                       23
<PAGE>

        "Comparable Treasury Price" means, with respect to any redemption date:

        -       the average of the Reference Treasury Dealer Quotations for that
                redemption date, after excluding the highest and lowest of the
                Reference Treasury Dealer Quotations; or

        -       if the Trustee obtains fewer than three Reference Treasury
                Dealer Quotations, the average of all Reference Treasury Dealer
                Quotations so received.

        "Quotation Agent" means the Reference Treasury Dealer appointed by the
Company.

        "Reference Treasury Dealer" means (1) each of Merrill Lynch, Pierce,
Fenner & Smith Incorporated and First Union Securities, Inc. and their
respective successors, unless any of them ceases to be a primary U.S. Government
securities dealer in New York City (a "Primary Treasury Dealer"), in which case
the Company shall substitute another Primary Treasury Dealer; and (2) any other
Primary Treasury Dealer selected by the Company.

        "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the trustee by that Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third business day preceding that redemption date.

        Section 2.      In case the Company shall desire to exercise such right
to redeem and pay off all or any part of such bonds of the New Series as
hereinbefore provided it shall comply with all the terms and provisions of
Article III of the Mortgage, as amended, applicable thereto, and such redemption
shall be made under and subject to the terms and provisions of Article III and
in the manner and with the effect therein provided, but at the time or times and
upon mailing of notice, all as hereinbefore set forth in Section 1 of this
Article. No publication of notice of any redemption of any bonds of the New
Series shall be required.

                                  ARTICLE V.

                       CERTAIN EVENTS OF DEFAULT; REMEDIES

        Section 1.      So long as any bonds of the New Series remain
outstanding, in case one or more of the following events shall happen, such
events shall, in addition to the events of default heretofore enumerated in
paragraphs (a) throughout (d) of Section 2 of Article VIII of the Mortgage,
constitute an "event of default" under the Mortgage, as fully as if such events
were enumerated therein:

                (e) default shall be made in the due and punctual payment of the
        principal (including the full amount of any applicable optional
        redemption price) of any bond or bonds of the New Series whether at the
        maturity of said bonds, or at a date fixed for redemption of said bonds,
        or any of them, or by declaration as authorized by the Mortgage;

                                       24
<PAGE>

        Section 2.      So long as any bonds of the New Series remain
outstanding, Section 10 of Article VIII of the Mortgage, as heretofore amended,
is hereby further amended by inserting in the first paragraph of such Section
10, immediately after the words "as herein provided," at the end of clause (2)
thereof, the following:

        "or (3) in case default shall be made in any payment of any interest on
any bond or bonds secured by this indenture or in the payment of the principal
(including any applicable optional redemption price) of any bond or bonds
secured by this indenture, where such default is not of the character referred
to in clause (1) or (2) of this Section 10 but constitutes an event of default
within the meaning of Section 2 of this Article VIII."

                                   ARTICLE VI.

                             CONCERNING THE TRUSTEE

        The Trustee hereby accepts the trust herein declared and provided and
agrees to perform the same upon the terms and conditions set forth in the
Mortgage, as amended and supplemented, and upon the following terms and
conditions:

        The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity of this Supplemental Indenture or the due execution
hereof by the Company or for or in respect of the recitals contained herein, all
of which recitals are made by the Company solely.

                                  ARTICLE VII.

                                  MISCELLANEOUS

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

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

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

                                       25
<PAGE>

and hereof are for the sole and exclusive benefit of the parties hereto and
their successors and of the holders of bonds secured by the Mortgage and
indentures supplemental thereto.

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

        Section 5.      This Supplemental Indenture is dated and shall be
effective as of October 15, 2001, but was actually executed and delivered on
October 25, 2001.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       26
<PAGE>

        IN WITNESS WHEREOF, the parties of the first and second parts hereto
have caused their corporate seals to be hereunto affixed and the President or a
Vice President of the party of the first part and the President or a Vice
President of the party of the second part, under and by the authority vested in
them, have hereto affixed their signatures and their Secretaries or Assistant
Secretaries have duly attested the execution hereof the 25th day of October,
2001.

                                              PECO ENERGY COMPANY

                                              By
                                                --------------------------------

                                                     J. B. Mitchell
                                                     Vice President

                                              [SEAL]

                                              Attest
                                                    ----------------------------

                                                         T. D. Cutler
                                                         Assistant Secretary

                                              FIRST UNION NATIONAL BANK

                                              By
                                                --------------------------------

                                                         G. J. Rayzis
                                                         Vice President

                                              [SEAL]

                                              Attest
                                                    ----------------------------

                                                         James M. Matthews
                                                         Assistant Secretary

                                       27
<PAGE>

COMMONWEALTH OF PENNSYLVANIA

                                       ss.

COUNTY OF PHILADELPHIA

        BE IT REMEMBERED, that on the 25th day of October, 2001, before me, a
Notary Public in and for said County and Commonwealth, residing in Philadelphia,
personally came T. D. Cutler, who being duly sworn according to law deposes and
says that he was personally present and did see the common or corporate seal of
the above named PECO Energy Company affixed to the foregoing Supplemental
Indenture, that the seal so affixed is the common or corporate seal of the said
PECO Energy Company, and was so affixed by the authority of the said corporation
as the act and deed thereof; that the above named J. B. Mitchell is a Vice
President of the said corporation, and did sign the said Supplemental Indenture
as such in the presence of this deponent that this deponent is Assistant
Secretary of the said corporation; and the name of the deponent, above signed in
attestation of the due execution of the said Supplemental Indenture, is in this
deponent's own proper handwriting.

        Sworn to and subscribed before me the day and year aforesaid.

                   -------------------------------------------

                                  Notarial Seal

                                 ---------------
                      Notary Public, City of Philadelphia,
                               Philadelphia County
                       My Commission Expires ______, ____

[SEAL]

                                       28
<PAGE>

COMMONWEALTH OF PENNSYLVANIA

                                       ss.

COUNTY OF PHILADELPHIA

        BE IT REMEMBERED, that on the 25th day of October, 2001, before me, the
subscriber, a Notary Public in and for said County and Commonwealth, residing in
Philadelphia, personally came James M. Matthews, who being duly sworn according
to law deposes and says that he was personally present and did see the common or
corporate seal of the above named First Union National Bank affixed to the
foregoing Supplemental Indenture, that the seal so affixed is the common or
corporate seal of the said First Union National Bank and was so affixed by the
authority of the said corporation as the act and deed thereof, that the above
named G. J. Rzyzis is a Vice President of the said corporation, and did sign the
said Supplemental Indenture as such in the presence of this deponent; that this
deponent is an Assistant Secretary of the said corporation; and that the name of
this deponent, above signed in attestation of the due execution of the said
Supplemental Indenture, is in this deponent's own proper handwriting.

        Sworn to and subscribed before me the day and year aforesaid.

        I hereby certify that I am not an officer of director of said First
Union National Bank.

                   -------------------------------------------

                                  Notarial Seal
                          _____________, Notary Public
                    City of Philadelphia, Philadelphia County
                       My Commission Expires ______, ____

[SEAL]

                                       29
<PAGE>

                            CERTIFICATE OF RESIDENCE

        First Union National Bank, Mortgagee and Trustee within named, hereby
certifies that its precise residence in the City of Philadelphia is N.E. Cor.
Broad and Walnut Streets in the City of Philadelphia, Pennsylvania.

                                           FIRST UNION NATIONAL BANK

                                           By
                                             --------------------------------
                                                      G. J. Rayzis
                                                      Vice President

                                       30
<PAGE>

                                   SCHEDULE A

                          COMMONWEALTH OF PENNSYLVANIA

                                 CHESTER COUNTY

DOWNINGTOWN BOROUGH                                                  (PE 10,548)

        (1)     ALL THAT CERTAIN lot or piece of land with the buildings and
improvements thereon erected SITUATE in the Borough of Downingtown, County of
Chester and Commonwealth of Pennsylvania, BEGINNING at a stake in the middle of
Williams Street in the old line dividing the properties now or late of Morgan L.
Rees & Joshua and Joseph Hunt, CONTAINING 25,160 square feet.

        BEING the same premises which Robert T. Murphy a/k/a Robert J. Murphy
and Patricia A. Carter Murphy by Indenture bearing date the 6th day of August
A.D. 1999 and recorded in the office for the Recording of Deeds in and for the
County of Chester in Deed Book 4617 page 103 granted and conveyed unto PECO
Energy Company, in fee.

DOWNINGTOWN BOROUGH                                                  (PE 10,554)

        (2)     ALL THAT CERTAIN lot or piece of land SITUATE on the North side
of Williams Street in the West Ward of the Borough of Downingtown, County of
Chester and Commonwealth of Pennsylvania, BEGINNING at a point in the middle of
Williams Street at a corner of other land now or late of Creston I. Shoemaker,
CONTAINING 3,700 square feet. Also ALL THAT CERTAIN lot or piece of land SITUATE
on the North side of Williams Street in the Borough of Downingtown, County of
Chester and Commonwealth of Pennsylvania, BEGINNING at a point in the middle of
Williams Street, at a corner of land now or late of Herbert Pritchard,
CONTAINING 8,140 square feet.

        BEING the same premises which Kenneth J. Leslie and Lori A. Leslie by
Indenture bearing date the 29th day of June A.D. 2000 and recorded in the Office
for the Recording of Deeds in and for the County of Chester in Deed Book 4789
page 1007 granted and conveyed unto PECO Energy Company, in fee.

WEST BRADFORD TOWNSHIP                                                 (PE 4434)

        (3)     ALL THAT CERTAIN tract or parcel of land situate in the Township
of West Bradford, County of Chester, Commonwealth of Pennsylvania, BEGINNING at
a point on the title line within the bed of Downingtown Road, CONTAINING 1.708
acres.

        BEING the same premises which Gloria O. Hamilton by Deed dated June 16,
1995 and recorded in the Office for Recording of Deeds &c., in and for the
County of Chester, in Deed Book 3704, page 1223 &c., granted and conveyed unto
PECO Energy Company, in fee.

                                       1
<PAGE>

                                 DELAWARE COUNTY

EDDYSTONE BOROUGH                                                      (PE 9207)

        (4)     ALL THAT CERTAIN strip or parcel of land situate in the Borough
of Eddystone, County of Delaware, Commonwealth of Pennsylvania, BEGINNING at a
point, located on the easterly right-of-way line of Simpson Avenue, CONTAINING
1.18 Acres, more or less.

        BEING the same premises which Adwin Realty Company by deed dated June
11, 1996 and recorded in the Office for the Recording of Deeds, in and for the
said County of Delaware in Deed Book No. 1498, Page 1844 &c., granted and
conveyed unto PECO Energy Company, in fee.

HAVERFORD TOWNSHIP                                                   (PE 10,555)

        (5)     ALL THAT CERTAIN tract or piece of land with the buildings and
improvements thereon erected SITUATE in said Township of Haverford, County of
Delaware, Commonwealth of Pennsylvania.

        BEGINNING at a spike in the bed of West Chester Pike said spike being in
the middle line of a certain Twenty feet wide right of way produced, thence
extending in the bed of West Chester Pike.

        BEING the same premises which Elizabeth E. Beadle, Widow of William F.
Beadle, deceased and Catherine Ferry, Marie D'Ambrosia, Joanne Taylor, William
Beadle, James Beadle, Margaret Hamill, Anne Moore, Robert Beadle and Richard
Beadle, Children of William F. Beadle, deceased; Mary Kissinger; John Beadle and
Jean M. Kissinger, by Indenture bearing date the 19th day of October A.D. 2000
and recorded in the Office for the Recording of Deeds in and for the County of
Delaware in Deed Book 2104 page 600 granted and conveyed unto PECO Energy
Company, in fee.

                               MONTGOMERY COUNTY

UPPER PROVIDENCE TOWNSHIP                                              (PE 6299)

        (6)     ALL THAT CERTAIN tract or parcel of land situate in the Township
of Upper Providence, County of Montgomery, Commonwealth of Pennsylvania,
BEGINNING at a point on the northwesterly right-of-way line of PECO Energy
Company's existing 200 foot wide electric transmission line right-of-way also
being the line dividing lands of Joseph U. and Beatrice G. Bean and lands of
PECO Energy Company, CONTAINING 8.896 Acres.

        BEING the same premises which Joseph U. Bean and Beatrice G. Bean by
Indenture bearing date November 8th, 1995 and recorded in the Office for the
Recording of Deeds in and for the County of Montgomery, conveyed unto PECO
Energy Company, in fee.

                                       2
<PAGE>

                       PHILADELPHIA AND DELAWARE COUNTIES

CITY OF PHILADELPHIA,
UPPER DARBY TOWNSHIP AND
EAST LANSDOWNE BOROUGH                                                 (PE 3988)

        (7)     ALL THAT CERTAIN property, together with the railroad bridges
thereon, being a portion of the line of railroad known as the Oxford Road
Branch, identified as Line Code 1181 in the Recorder's Office of Philadelphia
County, Pennsylvania in Deed Book D.C.C. No. 1962 at page 463, situate in the
City and County of Philadelphia and Commonwealth of Pennsylvania, BEGINNING at
approximately railroad Mile Post 0.0, being the westerly line of Front Street,
as indicated on sheet 1 of 4 of aforesaid Case Plan; thence extending in a
general northeasterly direction to approximately railroad Mile Post 2.18,
CONTAINING 28.95 Acres.

        Also, ALL THAT CERTAIN property of the Grantor, together with the
railroad bridge thereon, being a portion of the line of railroad known as the
Penn Central Newtown Square Branch, identified as Line Code 1186 in the
Recorder's Office of Delaware County, Pennsylvania in Deed Book 2668 at page
901, situate partly in the Borough of East Landsdowne and partly in the Township
of Upper Darby, County of Delaware and Commonwealth of Pennsylvania, BEGINNING
at approximately railroad Mile Post 5.84, being the southerly line of Baltimore
Pike; thence extending in a general northerly direction to approximately
railroad Mile Post 6.7, CONTAINING 6.72 Acres.

        BEING the same premises which Consolidated Rail Corporation by Indenture
bearing date the 30th day of May A.D. 1995 and recorded in the Office for the
Recording of Deeds in and for the County of Philadelphia and County of Delaware,
granted and conveyed unto PECO Energy Company, in fee.

                                       3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}]]