Document:

exv10w3

 

Exhibit 10.3

SECOND AMENDMENT TO CREDIT AGREEMENT

     THIS
SECOND AMENDMENT (this “Amendment”), dated as of February 22, 2006, amends the Five Year
Credit Agreement dated as of July 16, 2004 (as previously
amended, the “Credit Agreement”) among
EXELON CORPORATION, COMMONWEALTH EDISON COMPANY, PECO ENERGY COMPANY, EXELON GENERATION COMPANY,
LLC (each, an “Initial Borrower” and collectively, the “Initial Borrowers”), various
financial institutions and JPMORGAN CHASE BANK, N.A. (successor by merger to Bank One, NA), as
administrative agent (in such capacity, the “Administrative
Agent”). Capitalized terms used but
not defined herein have the respective meanings given to them in the Credit Agreement.

     WHEREAS, Exelon Corporation, on behalf of itself and the other Initial Borrowers, has
requested certain amendments to the Credit Agreement, including the deletion of ComEd as a
Borrower thereunder;

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto
agree as follows:

     SECTION 1 AMENDMENTS. Upon the effectiveness of this Amendment pursuant to
Section 2 below, the Credit Agreement shall be amended to read in its entirety as set
forth on the attached Annex I.

     SECTION 2 CONDITIONS PRECEDENT. This Amendment shall become effective when the
Administrative Agent has received (a) counterpart signature pages to this Amendment (by facsimile
or otherwise) signed by the Initial Borrowers and the Majority Lenders; and (b) payment in full by
ComEd of all of its obligations under the Credit Agreement, other than contingent indemnification
obligations arising under provisions of the Credit Agreement that by their terms survive
termination thereof (any such obligations, “Surviving Obligations”).

     SECTION 3 REPRESENTATIONS AND WARRANTIES.

     3.1 Representations and Warranties of ComEd. ComEd represents and warrants to
the Administrative Agent and the Lenders that (a) no Event of Default or Unmatured Event of
Default exists with respect to ComEd, (b) the execution and delivery by ComEd of this
Amendment (i) are within the powers of ComEd, (ii) have been duly authorized by all necessary
action on the part of ComEd, (iii) have received all necessary governmental approval and (iv)
do not and will not contravene or conflict with any provision of law or of the organizational
documents of ComEd; and (c) this Amendment is the legal, valid and binding obligation of
ComEd, enforceable against ComEd in accordance with its terms, except as enforceability may
be limited by bankruptcy, insolvency or other similar laws of general application affecting
the enforcement of creditor’s rights or by general principles of equity limiting the availability
of equitable remedies.

     3.2 Representations and Warranties of Continuing Borrowers. Each of Exelon, PECO
and Genco (each, a “Continuing Borrower” and collectively, the “Continuing Borrowers”)
represents and warrants to the Administrative Agent and the Lenders that (a) each
representation and warranty set forth in Article IV of the Credit Agreement is true and correct as if made on
the

 

 

date hereof; (b) the execution and delivery by such Continuing Borrower of this Amendment
and the performance by such Continuing Borrower of its obligations under the Credit Agreement as
amended hereby (as so amended, the “Amended Credit Agreement”) (i) are within the powers
of such Continuing Borrower, (ii) have been duly authorized by all necessary action on the part of
such Continuing Borrower, (iii) have received all necessary governmental approval and (iv) do not
and will not contravene or conflict with any provision of law or of the organizational documents
of such Continuing Borrower; and (c) this Amendment and the Amended Credit Agreement are legal,
valid and binding obligations of such Continuing Borrower, enforceable against such Continuing
Borrower in accordance with their respective terms, except as enforceability may be limited by
bankruptcy, insolvency or other similar laws of general application affecting the enforcement of
creditor’s rights or by general principles of equity limiting the availability of equitable
remedies.

     SECTION 4 MISCELLANEOUS.

     4.1 Continuing Effectiveness, etc. Except as expressly set forth herein, the Credit
Agreement shall remain in full force and effect and is ratified, approved and confirmed in all
respects.

     4.2 Severability. Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions of this Amendment or affecting the validity or enforceability of such provision in
any other jurisdiction.

     4.3 Headings. The various headings of this Amendment are inserted for convenience
only and shall not affect the meaning or interpretation of this Amendment.

     4.4 Execution in Counterparts. This Amendment may be executed by the parties hereto
in several counterparts, each of which shall be deemed to be an original and all of which
shall constitute together but one and the same agreement.

     4.5 Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA.

     4.6 Successors and Assigns. This Amendment shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and assigns.

     4.7 Deletion of ComEd as a Borrower. ComEd acknowledges that it shall not be a party
to the Amended Credit Agreement, shall have no right to request or obtain Credit Extensions
thereunder and shall have no other rights or obligations thereunder or in connection therewith
(other than Surviving Obligations).

[Signature Pages Follow]

2

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by
their respective officers as of the date first above written.

	 	 	 	 	 
	 	 	EXELON CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Miller
	 

	 	 	 	 
	 

	 	 	 	Name:      Thomas R. Miller
	 

	 	 	 	Title:        Assistant Treasurer

	 	 	 	 	 
	 	 	COMMONWEALTH EDISON COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Miller
	 

	 	 	 	 
	 

	 	 	 	Name:      Thomas R. Miller
	 

	 	 	 	Title:        Assistant Treasurer

	 	 	 	 	 
	 	 	PECO ENERGY COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Miller
	 

	 	 	 	 
	 

	 	 	 	Name:      Thomas R. Miller
	 

	 	 	 	Title:         Assistant Treasurer

	 	 	 	 	 
	 	 	EXELON GENERATION COMPANY, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Miller
	 

	 	 	 	 
	 

	 	 	 	Name:      Thomas R. Miller
	 

	 	 	 	Title:        Assistant Treasurer

Second Amendment to

Five Year Credit Agreement

 

 

THE LENDERS:

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as

Administrative Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. DeForge
	 

	 	 	 	 
	 	 	Name:      Michael J. DeForge
	 	 	Title:        Vice President

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	BARCLAYS BANK PLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David Barton
	 

	 	 	 	 
	 	 	Name: David Barton
	 	 	Title:  Associate Director

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 	 
	 	 	CITIBANK, N.A.	 	 	
	 
	 	 	 	 	 	 	
	 	 	By:	 	/s/ Stuart J. Murray	
	 	 	 	 	 
	 	 	Name:	STUART J. MURRAY	 	
	 	 	Title:	Director	 	
	 

	 	 	 	 	 388 Greenwich Street/21st FL/NYC	 	
	 

	 	 	 	 	 (212) 816-8597	 	

 Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	DEUTSCHE, BANK AG NEW YORK BRANCH
	 
	 	 	 	 
	 

	 	By:
	 	    /s/ Marcus Tarkington
	 

	 	 	 	 
	 	 	Name:    Marcus Tarkington
	 	 	Title:      Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Rainer Meier
	 

	 	 	 	 
	 	 	Name:   Rainer Meier
	 	 	Title:     Assistant Vice President

 Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kevin R. Wagley
	 

	 	 	 	 
	 	 	Name:
    Kevin R. Wagley
	 	 	Title:       Senior Vice President

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	MERRILL LYNCH BANK USA
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Louis Alder
	 

	 	 	 	 
	 	 	Name:     Louis Alder
	 	 	Title:       Director

 Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thane Rattew
	 

	 	 	 	 
	 	 	Name:   Thane Rattew
	 	 	Title:   Managing Director

 Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE, Cayman Islands Branch
(formerly known as CREDIT SUISSE FIRST
BOSTON. Cayman Islands Branch)
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Sarah Wu
	 

	 	 	 	 
	 	 	Name:     Sarah Wu
	 	 	Title:       Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Denise Alvarez
	 

	 	 	 	 
	 	 	Name:     Denise Alvarez
	 	 	Title:       Associate

 Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Mack
	 

	 	 	 	 
	 	 	Name:   Lawrence A. Mack
	 	 	Title:   Senior Vice President

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	LEHMAN BROTHERS BANK, FSB
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Janine M. Shugan
	 

	 	 	 	 
	 	 	Name:   Janine M. Shugan
	 	 	Title:     Authorized Signatory

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	UBS LOAN FINANCE LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard L. Tavrow
	 

	 	 	 	 
	 

	 	Name:
	 	Richard L. Tavrow
	 

	 	Title:
	 	Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Irja R. Otsa
	 

	 	 	 	 
	 

	 	Name:
	 	Irja R. Otsa
	 

	 	Title:
	 	Associate Director

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	BNP PARIBAS
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark A. Renaud
	 

	 	 	 	 
	 

	 	Name:
	 	MARK A. RENAUD
	 

	 	Title:
	 	Managing Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Timothy F. Vincent
	 

	 	 	 	 
	 

	 	Name:
	 	TIMOTHY F. VINCENT
	 

	 	Title:
	 	Director

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard K. Fronapfel, Jr.
	 

	 	 	 	 
	 

	 	Name:
	 	Richard K. Fronapfel, Jr.
	 

	 	Title:
	 	Vice President

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	MELLON BANK, N.A.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark W. Rogers
	 

	 	 	 	 
	 

	 	Name:
	 	Mark W. Rogers
	 

	 	Title:
	 	Vice President

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	ABN AMRO BANK, N.V.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ R. Scott Donaldson
	 

	 	 	 	 
	 

	 	Name:
	 	R. Scott Donaldson
	 

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Todd Vaubel
	 

	 	 	 	 
	 

	 	Name:
	 	Todd Vaubel
	 

	 	Title
	 	Assistant Vice President

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	DRESDNER BANK AG, NEW YORK AND
	 	 	GRAND CAYMAN BRANCHES
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Brady
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas R. Brady
	 

	 	Title:
	 	Director
	 
	 	 	 	 
	 	 	DRESDNER BANK AG, NEW YORK AND
	 	 	GRAND CAYMAN BRANCHES
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Brian Smith
	 

	 	 	 	 
	 

	 	Name:
	 	Brian Smith
	 

	 	Title:
	 	Managing Director

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	THE NORTHERN TRUST COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Karen E. Dahl
	 

	 	 	 	 
	 

	 	Name:
	 	KAREN E. DAHL
	 

	 	Title:
	 	VICE PRESIDENT

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ R. Michael Newton
	 

	 	 	 	 
	 

	 	Name:
	 	R. Michael Newton
	 

	 	Title:
	 	Vice President

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles W. Reed
	 

	 	 	 	 
	 

	 	Name:
	 	Charles W. Reed
	 

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Peter R. Martinets
	 

	 	 	 	 
	 

	 	Name:
	 	Peter R. Martinets
	 

	 	Title:
	 	Vice President

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Raymond Ventura
	 

	 	 	 	 
	 

	 	Name:
	 	Raymond Ventura
	 

	 	Title:
	 	Deputy General Manager

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	UNION BANK OF CALIFORNIA
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Jonathan Bigelow
	 

	 	 	 	 
	 

	 	Name:
	 	Jonathan Bigelow
	 

	 	Title:
	 	Vice President

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL
	 	 	ASSOCIATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	MORGAN STANLEY BANK
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

Second Amendment to

Five Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	FIFTH THIRD BANK
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

Second Amendment to

Five Year Credit Agreement

 

 

ANNEX
I

COPY OF CREDIT AGREEMENT AS AMENDED

[ATTACHED]

Annex I-1

 

 

COMPOSITE COPY

$1,000,000,000

FIVE YEAR CREDIT AGREEMENT

dated as of July 16, 2004

among

EXELON CORPORATION,

PECO ENERGY COMPANY

and

EXELON GENERATION COMPANY, LLC

as Borrowers

VARIOUS FINANCIAL INSTITUTIONS

as Lenders

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

CITIBANK, N.A.,

WACHOVIA BANK, NATIONAL ASSOCIATION

and

ABN AMRO BANK, N.V.

as Co-Documentation Agents

and

BARCLAYS BANK PLC

as Syndication Agent

J.P. MORGAN SECURITIES INC.

and

BARCLAYS CAPITAL

Co-Lead Arrangers and Joint Book Runners

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	SECTION 1.01 Certain Defined Terms
	 	 	1	 
	SECTION 1.02 Other Interpretive Provisions
	 	 	13	 
	SECTION 1.03 Accounting Principles
	 	 	13	 
	ARTICLE II AMOUNTS AND TERMS OF THE COMMITMENTS
	 	 	14	 
	SECTION 2.01 Commitments
	 	 	14	 
	SECTION 2.02 Procedures for Advances; Limitations on Borrowings
	 	 	14	 
	SECTION 2.03 Facility and Utilization Fees
	 	 	15	 
	SECTION 2.04 Reduction of Commitment Amounts; Adjustment of
Sublimits
	 	 	16	 
	SECTION 2.05 Repayment of Advances
	 	 	16	 
	SECTION 2.06 Interest on Advances
	 	 	16	 
	SECTION 2.07 Additional Interest on Eurodollar Advances
	 	 	17	 
	SECTION 2.08 Interest Rate Determination
	 	 	17	 
	SECTION 2.09 Continuation and Conversion of Advances
	 	 	18	 
	SECTION 2.10 Prepayments
	 	 	18	 
	SECTION 2.11 Increased Costs
	 	 	18	 
	SECTION 2.12 Illegality
	 	 	20	 
	SECTION 2.13 Payments and Computations
	 	 	20	 
	SECTION 2.14 Taxes
	 	 	22	 
	SECTION 2.15 Sharing of Payments, Etc
	 	 	24	 
	SECTION 2.16 Facility LCs
	 	 	24	 
	ARTICLE III CONDITIONS TO CREDIT EXTENSIONS
	 	 	28	 
	SECTION 3.01 Conditions Precedent to Initial Credit Extensions
	 	 	29	 
	SECTION 3.02 Conditions Precedent to All Credit Extensions
	 	 	30	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	30	 
	SECTION 4.01 Representations and Warranties of the Borrowers
	 	 	30	 
	ARTICLE V COVENANTS OF THE BORROWERS
	 	 	33	 
	SECTION 5.01 Affirmative Covenants
	 	 	33	 
	SECTION 5.02 Negative Covenants
	 	 	36	 

 -i-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VI EVENTS OF DEFAULT
	 	 	38	 
	SECTION 6.01 Events of Default
	 	 	38	 
	ARTICLE VII THE AGENTS
	 	 	41	 
	SECTION 7.01 Authorization and Action
	 	 	41	 
	SECTION 7.02 Agents’ Reliance, Etc
	 	 	41	 
	SECTION 7.03 Agents and Affiliates
	 	 	41	 
	SECTION 7.04 Lender Credit Decision
	 	 	42	 
	SECTION 7.05 Indemnification
	 	 	42	 
	SECTION 7.06 Successor Administrative Agent
	 	 	42	 
	SECTION 7.07 Co-Documentation Agents, Syndication Agent and Co-Lead Arranger
	 	 	43	 
	ARTICLE VIII MISCELLANEOUS
	 	 	43	 
	SECTION 8.01 Amendments, Etc
	 	 	43	 
	SECTION 8.02 Notices, Etc
	 	 	43	 
	SECTION 8.03 No Waiver; Remedies
	 	 	44	 
	SECTION 8.04 Costs and Expenses; Indemnification
	 	 	44	 
	SECTION 8.05 Right of Set-off
	 	 	45	 
	SECTION 8.06 Binding Effect
	 	 	45	 
	SECTION 8.07 Assignments and Participations
	 	 	46	 
	SECTION 8.08 Governing Law
	 	 	49	 
	SECTION 8.09 Consent to Jurisdiction; Certain Waivers
	 	 	49	 
	SECTION 8.10 Execution in Counterparts; Integration
	 	 	49	 
	SECTION 8.11 Liability Several
	 	 	50	 
	SECTION 8.12 USA PATRIOT ACT NOTIFICATION
	 	 	50	 
	SECTION 8.13 Termination of Existing Agreement
	 	 	50	 

 -ii-

 

 

TABLE OF CONTENTS

(continued)

Page

	 	 	 
	SCHEDULE I
	 	PRICING SCHEDULE
	SCHEDULE II
	 	COMMITMENTS
	SCHEDULE III
	 	EXISTING LETTERS OF CREDIT
	SCHEDULE IV
	 	EXISTING TAX EXEMPT DEBT ISSUANCES
	 
	 	 
	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 COUNSEL FOR EXELON AND PECO
	EXHIBIT E
	 	FORM OF ANNUAL AND QUARTERLY COMPLIANCE
	 
	 	CERTIFICATE

 -iii-

 

 

FIVE YEAR CREDIT AGREEMENT

dated as of July 16, 2004

EXELON CORPORATION, PECO ENERGY COMPANY, EXELON GENERATION COMPANY, LLC, the banks listed on the
signature pages hereof, JPMORGAN CHASE BANK, N.A., as Administrative Agent, CITIBANK, N.A.,
WACHOVIA BANK, NATIONAL ASSOCIATION and ABN AMRO BANK, N.V., as Co-Documentation Agents, and
BARCLAYS BANK PLC, as Syndication Agent, 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):

     “Adjusted Funds From Operations” means, for any Borrower for any period, such
Borrower’s Net Cash Flows From Operating Activities for such period minus such Borrower’s
Transitional Funding Instrument Revenue for such period plus such Borrower’s Net Interest
Expense for such period minus, in the case of Exelon, the portion (but, not less than zero)
of Exelon’s Net Cash Flows From Operating Activities for such period attributable to ComEd Entities
and Energy Holdings Entities.

     “Administrative Agent” means JPMCB 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.

     “Administrative Questionnaire” means an administrative questionnaire, substantially
in the form supplied by the Administrative Agent, completed by a Lender and furnished to the
Administrative Agent in connection with this Agreement.

     “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 Syndication
Agent; 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.

-1-

 

     “Applicable Margin” — see Schedule I.

     “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.

     “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:

     (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, 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 Citibank, N.A., Wachovia Bank, National
Association and ABN AMRO Bank, N.V. in its capacity as a co-documentation agent hereunder.

     “Co-Lead Arranger” means each of J.P. Morgan Securities Inc. and Barclays Capital in
its capacity as a Co-Lead Arranger.

     “ComEd” means Commonwealth Edison Company, an Illinois corporation, or any successor thereof.

-2-

 

     “ComEd Debt” means Debt of any ComEd Entity for which none of the Borrowers nor any of their
Subsidiaries (other than another ComEd Entity) has any liability, contingent or otherwise.

     “ComEd Entity” means ComEd and each of its Subsidiaries.

     “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 Schedule II attached hereto 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)
July 16, 2009 or (ii) the date of termination of the Commitments to such Borrower pursuant to
Section 2.04 or 6.01.

     “Commodity Trading Obligations” mean, with respect to any Person, the obligations of
such Person under (i) any commodity swap agreement, commodity future agreement, commodity option
agreement, commodity cap agreement, commodity floor agreement, commodity collar agreement,
commodity hedge agreement, commodity forward contract or derivative transaction and any put, call
or other agreement, arrangement or transaction, including natural gas, power and emissions forward
contracts, or any combination of any such arrangements, agreements and/or transactions, employed in
the ordinary course of such Person’s business, including any such Person’s energy marketing,
trading and asset optimization business, or (ii) any commodity swap agreement, commodity future
agreement, commodity option agreement, commodity hedge agreement, and any put, call or other
agreement or arrangement, or combination thereof (including an agreement or arrangement to hedge
foreign exchange risks) in respect of commodities entered into by such Person pursuant to asset
optimization and risk management policies and procedures adopted in good faith by the Board of
Directors of such Person. The term “commodities” shall include electric energy and/or capacity,
coal, petroleum, natural gas, emissions allowances, weather derivatives and related products and
by-products and ancillary services.

     “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.

     “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

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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” in its Administrative Questionnaire 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; (iv) the central
bank of any country that is a member of the OECD; (v) any Lender; or (v) any Affiliate of a Lender;
provided that, unless otherwise agreed by Exelon and the Administrative Agent in their sole
discretion, (A) any 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), (iv) or (v) 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 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.

     “Energy Holdings” means PSEG Energy Holdings L.L.C., a New Jersey limited liability
company.

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     “Energy Holdings Debt” means Debt of any Energy Holdings Entity for which none of the
Borrowers nor any of their Subsidiaries (other than another Energy Holdings Entity) has any
liability, contingent or otherwise.

     “Energy Holdings Entity” means Energy Holdings and each of its Subsidiaries.

     “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” in its Administrative Questionnaire 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, the applicable British Bankers’ Association LIBOR rate for deposits in U.S.
dollars having a maturity equal to such Interest Period, as reported by any generally recognized
financial information service as of 11:00 A.M. (London time) two Business Days prior to the first
day of such Interest Period; provided that if no such British Bankers’ Association LIBOR
rate is available to the Administrative Agent, the Eurodollar Rate for such Interest Period shall
instead be the rate determined by the Administrative Agent to be the rate at which JPMCB or one of
its Affiliate banks offers to place deposits in U.S. dollars with first-class banks in the London
interbank market at approximately 11:00 A.M. (London time) two Business Days prior to the first
day of such Interest Period, in the approximate amount of JPMCB’s relevant Eurodollar Rate Advance
and having a maturity equal to such Interest Period.

     “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 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.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended and modified from time
to time.

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

     “Exelon Sublimit” means $100,000,000, subject to adjustment as provided in
Section 2.04(c)

     “Existing Agreement” means the 364-Day Credit Agreement dated as of October 31, 2003
among the Borrowers, various financial institutions and Bank One, NA, as Administrative Agent.

     “Existing Letter of Credit” means each letter of credit listed on
Schedule III.

     “Facility Fee Rate” — see Schedule I.

     “Facility LC” means any letter of credit issued pursuant to Section 2.16 and any
Existing Letter of Credit.

     “Facility LC Application” — see 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.

     “GAAP” — see Section 1.03.

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

     “Genco Sublimit” means $650,000,000, subject to adjustment as provided in Section
2.04(c)

     “Granting Bank” — see Section 8.07(h).

     “Hedging Obligations” mean, with respect to any Person, the obligations of such
Person under any interest rate or currency swap agreement, interest rate or currency future
agreement, interest rate collar agreement, interest rate or currency hedge agreement, and any put,
call or other agreement or arrangement designed to protect such Person against fluctuations in
interest rates or currency exchange rates.

     “Interest Coverage Ratio” means, with respect to any Borrower for any period of four
consecutive fiscal quarters, the ratio of such Borrower’s Adjusted Funds From Operations for such
period to such Borrower’s Net Interest Expense for such period.

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     “Interest Expense” means, for any Borrower for any period, “interest expense” as shown on a
consolidated statement of income of such Borrower for such period prepared in accordance with
GAAP.

     “Interest Expense to Affiliates” means, for any period, in the case of Exelon and
PECO, “Interest Expense to Affiliates” as shown on a consolidated statement of income of Exelon or
PECO, as applicable, for such period.

     “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 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
Maturity Date for such Borrower;

     (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.

     “JPMCB” means JPMorgan Chase Bank, N.A., a national banking association.

     “LC Fee Rate” — see Schedule I.

     “LC Issuer” means JPMCB 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” — see Section 2.16.5.

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     “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 $800,000,000.

     “Lien” means any lien (statutory or other), mortgage, pledge, security interest or other
charge or encumbrance, or any other type of preferential arrangement (including the interest of a
vendor or lessor under any conditional sale, capitalized lease or other title retention
agreement).

     “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 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 (other than ComEd
Entities and Energy Holdings Entities), taken as a whole,
provided that, except as
otherwise expressly provided herein, neither (a) changes or effects relating to the
investment of such Borrower or any of its Subsidiaries in ComEd Entities or Energy Holdings
Entities nor (b) the assertion against such Borrower or any of its Subsidiaries of liability for
any obligation arising under ERISA for which such Borrower or any of its Subsidiaries bore joint
and several liability with any ComEd Entity, or the payment by such Borrower or any of its
Subsidiaries of any such obligation, shall be considered in determining whether a Material Adverse
Change or Material Adverse Effect has occurred); 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 PECO, Genco and, on and
after the PSEG Merger Date, PSE&G, and any holding company for any of the foregoing.

     “Maturity Date” means, with respect to any Borrower, the earlier of (i) July 16, 2009 or (ii)
the date on which all obligations of such Borrower become due and payable (pursuant to Section
6.01 or otherwise).

     “Modify”
and “Modification” — see Section 2.16.1.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

     “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”).

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     “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.

     “Net Cash Flows From Operating Activities” means, for any Borrower for any period,
“Net Cash Flows provided by Operating Activities” as shown on a consolidated statement of cash
flows of such Borrower for such period prepared in accordance with GAAP, excluding any
“working capital changes” (as shown on such statement of cash flows) taken into account in
determining such Net Cash Flows provided by Operating Activities.

     “Net Interest Expense” means, for any Borrower for any period, the total of (a) such
Borrower’s Interest Expense for such period minus (b) to the extent that Interest Expense
to Affiliates is included in such Interest Expense and relates to (i) interest payments on debt
obligations that are subordinated to the obligations of such Borrower under this Agreement, (ii)
such Borrower’s Interest Expense to Affiliates for such period or (iii) such Borrower’s or such
Borrower’s Subsidiaries’ Transitional Funding Instrument Interest for such period minus
(c) in the case of Exelon, interest on ComEd Debt and Energy Holdings Debt for such period.

     “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 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, 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).

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     “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 $250,000,000, subject to adjustment as provided in Section
2.04(c)

     “Permitted Obligations” mean, with respect to Genco or any of its Subsidiaries, (1)
Hedging Obligations arising in the ordinary course of business and in accordance with such
Person’s established risk management policies that are designed to protect such Person against,
among other things, fluctuations in interest rates or currency exchange rates and which in the
case of agreements relating to interest rates shall have a notional amount no greater than the
payments due with respect to the Obligations being hedged thereby and (2) Commodity Trading
Obligations.

     “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.

     “Power” means PSEG Power LLC, a Delaware limited liability company.

     “Power Merger” means the proposed merger of Power into Genco subsequent to the PSEG Merger.

     “Power Merger Date” means the date that the Power Merger is consummated.

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     “Prime Rate” means a rate per annum equal to the prime rate of interest announced by JPMCB
(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, (a) each Utility Subsidiary
of such Borrower and (b) each other Subsidiary of such Borrower (i) the consolidated assets of
which, as of the date of any determination thereof, constitute at least 10% of the consolidated
assets of such Borrower or (ii) the consolidated earnings before taxes of which constitute at least
10% of the consolidated earnings before taxes of such Borrower for the most recently completed
fiscal year; provided that (x) no ComEd Entity shall be considered a Principal Subsidiary
of Exelon; and (y) on or after the PSEG Merger Date, no Energy Holdings Entity shall be considered
a Principal Subsidiary of Exelon.

     “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).

     “PSE&G”
means Public Service Electric and Gas Company, a New Jersey
corporation.

     
“PSEG”
means Public Service Enterprise Group Incorporated, a New Jersey corporation.

     “PSEG Merger” means the merger of PSEG into Exelon substantially as contemplated by the
Agreement and Plan of Merger dated as of December 20, 2004 between PSEG and Exelon.

     “PSEG Merger Date” means the date that the PSEG Merger is consummated.

     “PSE&G Mortgage” means the Mortgage Indenture dated August 1, 1924, between PSE&G and
Wachovia Bank, National Association (formerly Fidelity Union Trust Company), as trustee, 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 scope of Liens permitted under the PSE&G Mortgage as constituted on the date of this
Agreement.

     “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

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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. and any successor thereto.

     “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.

     “SPC”
— see Section 8.07(h).

     “Special Purpose Subsidiary” means a direct or indirect wholly owned corporate
Subsidiary of PECO or, on and after the PSEG Merger Date, PSE&G, substantially all of the assets of
which are “intangible transition property” (as defined in 66 Pa. Cons. Stat. Ann. ss.2812(g), as
amended, or any successor provision of similar import) or “bondable transition property” (as
defined in N.J.S.A. 48:3-51, as amended, 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 PECO Sublimit or the Genco Sublimit.

     “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).

     “Syndication Agent” means Barclays Bank PLC in its capacity as a syndication agent
hereunder.

     “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 PECO, are “transition bonds” (as defined in 66 Pa. Cons. Stat. Ann. ss.2812(g), as
amended), representing a securitization of “intangible transition property” (as defined in the
foregoing

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statute), (ii) on and after the PSEG Merger Date, in the case of PSE&G are “transition bonds” (as
defined in N.J.S.A. 48:3-51, as amended), representing a securitization of “bondable transition
property” (as defined in the foregoing statute) and (iii) in the case of each of PECO and, after
the PSEG Merger Date, PSE&G, (A) are issued pursuant to a financing order of a public utilities
commission at the request of an electric utility pursuant to state legislation which is enacted to
facilitate the recovery of certain specified costs by electric utilities through non-bypassable
cent per kilowatt hour charges and/or demand charges authorized pursuant to such order to be
applied and invoiced to customers of such utility and (B) are secured by or otherwise payable
solely from such non-bypassable charges.

     “Transitional Funding Instrument Interest” means, for any Borrower for any period, the
portion of such Borrower’s Interest Expense for such period which was payable in respect of
Transitional Funding Instruments.

     “Transitional Funding Instrument Revenue” means, for any Borrower for any period, the
portion of such Borrower’s (or, in the case of Exelon, its Subsidiaries’) consolidated revenue for
such period attributable to charges invoiced to customers in respect of Transitional Funding
Instruments.

     “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 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, become an Event of Default.

     “Utility Subsidiary” means, with respect to a Borrower, each Subsidiary of such
Borrower that is engaged principally in the transmission, or distribution of electricity or gas and
is subject to rate regulation as a public utility by federal or state regulatory authorities;
provided that, (i) no ComEd Entity shall be considered a Utility Subsidiary of Exelon and (ii) on
or after the PSEG Merger Date, no Energy Holdings Entity shall be considered a Utility Subsidiary
of Exelon.

     “Utilization Fee Rate” — see Schedule I.

     SECTION 1.02 Other Interpretive Provisions. In this Agreement, (a) 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”; (b) unless otherwise
indicated, any reference to an Article, Section, Exhibit or
Schedule means an Article or Section hereof or an Exhibit or Schedule hereto; and (c) the
term “including” means “including without limitation”.

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     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, 2004 and for the fiscal year then ended, as such principles may be revised as a result of
changes in GAAP implemented by a Borrower subsequent to such date. 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.

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
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 PECO shall not at any time exceed the PECO
Sublimit; (v) the Outstanding Credit Extensions to Genco shall not at any time exceed the Genco
Sublimit; and (vi) 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

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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, 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 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 (or, in the case of a borrowing of Base Rate Advances to be made on the
same Business Day as the Administrative Agent’s receipt of the relevant Notice of Borrowing, prior
to 10:30 A.M., Chicago time, on such Business Day) 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 Section 2.02(a) and the 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.

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          (e) Each Borrowing of Base Rate Advances shall at all times be in an aggregate amount of
$5,000,000 or a higher integral multiple of $1,000,000; and each Borrowing of Eurodollar Rate
Advances shall at all times be in an aggregate amount of $10,000,000 or a higher integral multiple
of $1,000,000. 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 for such Borrower, 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 50% of the aggregate amount of
the Commitment Amounts or (ii) such Borrower’s Outstanding Credit Extensions exceed 50% 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 aggregate
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).

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          (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 Borrower’s Sublimit shall exceed $750,000,000; (C) the Outstanding Credit
Extensions to Exelon shall not exceed the Exelon Sublimit; (D) the Outstanding Credit Extensions to
Genco shall not exceed the Genco Sublimit and (E) 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 Maturity 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.

     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, 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

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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) 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).

          (b) 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.

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     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 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, 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

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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 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, 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

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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 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 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.

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          (d) Whenever any payment hereunder 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.

          (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

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arising from the execution, delivery or registration of this Agreement or any Note (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.

          (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 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 any Note. 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

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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 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 the
termination of this Agreement; 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, 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

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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 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 and to
renew, extend, increase 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.
Facility LCs may be issued, at any Borrower’s request, for any proper corporate or limited
liability company purpose, as applicable, including for the provision of credit enhancement
and/or liquidity support for any existing or future tax-exempt or taxable debt issuance
(including the existing tax-exempt debt issuances listed on Schedule IV). No
Facility LC shall have an expiry date later than 5 Business Days prior to the scheduled
Commitment Termination Date. By their execution of this Agreement, the parties hereto
agree that on the Closing Date (without any further action by any Person), each Existing
Letter of Credit shall be deemed to have been issued under this Agreement and the rights
and obligations of the issuer and the account party thereunder shall be subject to the
terms hereof.

     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 (or, in this case of
the Existing Letters of Credit, on the Closing Date), 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

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precedent set forth in Article III (the satisfaction of which the LC Issuer shall have no
duty to ascertain; provided that the LC Issuer shall not issue any Facility LC if the LC
Issuer shall have received written notice (which has not been rescinded) from the Administrative
Agent or any Lender that any applicable condition precedent to the issuance or modification of such
Facility LC has not been satisfied and, in fact, such condition precedent is not satisfied at the
requested time of issuance), 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 arrears on the last day of each
March, June, September and December and on the Maturity 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, 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,
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

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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 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

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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 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 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.

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     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.

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 that all “Commitments”
under and as defined in the Existing Agreement have been (or concurrently with the initial Advances
will be) terminated, (b) evidence, satisfactory to the Administrative Agent, that the “Commitments”
under and as defined in the Three Year Credit Agreement dated as of October 31, 2003 among the
Borrowers, various financial institutions and Bank One, NA, as agent, have been reduced by
$250,000,000 and that the maximum available “Sublimit” for any Borrower thereunder has been reduced
to $250,000,000 and (c) 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 any Note) in sufficient copies to
provide one for each Lender:

     (i) Notes issued by each Borrower in favor of each Lender that has requested a
Note to evidence its Advances;

     (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 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 articles or
certificate of incorporation and by-laws, or equivalent organizational

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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, counsel for
the Borrowers, substantially in the form of Exhibit D.

     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;
provided that this Section 3.02(A) shall not apply to the representations
and warranties set forth in Sections 4.01(e)(i)(B), 4.01(e)(ii)(B) and
4.01(e)(iii)(B) and the first sentence of Section 4.01(f) with respect to a
Borrowing if the proceeds of such Borrowing will be used exclusively to repay such
Borrower’s commercial paper (and, in the event of any such Borrowing, the Administrative
Agent may require the applicable Borrower to deliver information sufficient to disburse the
proceeds of such Borrowing directly to the holders of such commercial paper or a paying
agent therefor); 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.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

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

              (a) Such Borrower is a corporation or limited liability company 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 any Note
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 any applicable Note, except an appropriate order
or orders of (i) the Securities and Exchange Commission under the Public Utility Holding Company
Act of 1935, if applicable, (ii) the Federal Energy Regulatory Commission, if applicable, and (iii)
in the case of PECO, the Pennsylvania Public Utility Commission under the Pennsylvania Public
Utility Code, which order or orders have been duly obtained and are (x) in full force and effect
and (y) sufficient for the purposes hereof.

              (d) This Agreement is, and each applicable Note when delivered hereunder will be, legal, valid
and binding obligations of such Borrower, 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, (A) the consolidated balance sheet of PECO and its
Subsidiaries as at December 31, 2004, 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, 2005,
and the related unaudited statements 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, 2005, 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 (B) since December
31, 2004 there has been no Material Adverse Change with respect to PECO.

     (ii) In the case of Exelon, (A) the consolidated balance sheet of Exelon and
its Subsidiaries as at December 31, 2004 and the related consolidated statements of
income, retained earnings and cash flows of Exelon for the fiscal

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year then ended, certified by Pricewaterhouse Coopers LLP, and the unaudited
consolidated balance sheet of Exelon and its Subsidiaries as of September 30, 2005
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, 2005, 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 (B) since December 31,
2004 there has been no Material Adverse Change with respect to Exelon.

     (iii) In the case of Genco, (A) the consolidated balance sheet of Genco and
its Subsidiaries as at December 31, 2004 and the related consolidated statements of
income, retained earnings and cash flows of Genco for the fiscal year then ended,
certified by Pricewaterhouse Coopers LLP, and the unaudited consolidated balance
sheet of Genco and its Subsidiaries as of September 30, 2005 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, 2005, to year-end adjustments) the consolidated financial
condition of Genco and its Subsidiaries as at such dates and the consolidated
results of the operations of Genco and its Subsidiaries for the periods ended on
such dates in accordance with GAAP; and (B) since December 31, 2004 there has been
no Material Adverse Change with respect to Genco.

            (f) Except as disclosed in such Borrower’s Annual, Quarterly or Current Reports, each as filed
with the Securities and Exchange Commission and delivered to the Lenders prior to the date of
execution and delivery of this Agreement and, in the case of Exelon, on and after the PSEG Merger
Date, as disclosed in any Annual, Quarterly or Current Report of PSEG or any Subsidiary thereof
filed with the Securities and Exchange Commission prior to October 25, 2005, and, in the case of
Genco, on and after the Power Merger Date, as disclosed in any Annual, Quarterly or Current Report
of Power filed with the Securities and Exchange Commission prior to October 25, 2005, 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.

            (g) No
proceeds of any Advance 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

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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 (excluding any termination arising out of the institution by or against
any ComEd Entity of any bankruptcy, insolvency or similar proceeding so long as such termination
will not constitute an Event of Default or Unmatured Event of Default under Section
6.01(g))., and there is no “accumulated funding deficiency” (as defined in Section 412 of the
Code or Section 302 of ERISA) 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
(other than to make contributions, pay annual PBGC premiums or pay out benefits in the ordinary
course of business), fine or penalty (excluding any condition, event or transaction arising out of
the institution by or against any ComEd Entity of any bankruptcy, insolvency or similar proceeding
so long as such condition, event or transaction does not constitute an Event of Default or
Unmatured Event of Default under Section 6.01(g)).

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 the Commitments to such Borrower have not been irrevocably
terminated, 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;

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     (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 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 clause (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;

     (vii) use the proceeds of the Advances to it for general corporate or limited
liability company purposes, as the case may be (including the refinancing of its
commercial paper and the making of acquisitions), but in no event for any purpose which
would be contrary to Section 4.01(g) or 4.01(h); and

     (viii) pay, prior to delinquency, all of its federal income taxes and other material
taxes and governmental charges, except to the extent that (a) such taxes or charges are
being contested in good faith and by proper proceedings and against which adequate
reserves are being maintained or (b) failure to pay such taxes or charges would not
reasonably be expected to have a Material Adverse Effect.

(b) Reporting Requirements. Furnish to the Lenders:

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     (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;

     (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 June 30, 2004), 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 cash
flows 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 clause (ii) or (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

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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
purchase, benefit or dividend reinvestment plans of such Borrower or such
Subsidiary);

     (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.

Each Borrower may provide information, documents and other materials that it is obligated to
furnish to the Administrative Agent pursuant to this Section 5.01(b) and all other notices,
requests, financial statements, financial and other reports, certificates and other information
materials, but excluding any communication that (i) relates to a request for a Credit Extension,
(ii) relates to the payment of any amount due under this Agreement prior to the scheduled date
therefor or any reduction of the Commitments, (iii) provides notice of any Event of Default or
Unmatured Event of Default or (iv) is required to be delivered to satisfy any condition precedent
to the effectiveness of this Agreement or any Credit Extension hereunder (any non-excluded
communication described above, a “Communication”), electronically (including by posting
such documents, or providing a link thereto, on Exelon’s Internet website). Notwithstanding the
foregoing, each Borrower agrees that, to the extent requested by the Administrative Agent, it will
continue to provide “hard copies” of Communications to the Administrative Agent.

Each Borrower further agrees that the Administrative Agent may make Communications available to the
Lenders by posting such Communications on Intralinks or a substantially similar electronic
transmission system (the “Platform”).

THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE ADMINISTRATIVE AGENT DOES NOT WARRANT THE
ACCURACY OR COMPLETENESS OF ANY COMMUNICATION OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY
DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN ANY COMMUNICATION. NO WARRANTY OF ANY KIND, EXPRESS,
IMPLIED OR

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STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY
THE ADMINISTRATIVE AGENT IN CONNECTION WITH ANY COMMUNICATION OR THE PLATFORM. IN NO EVENT SHALL
THE ADMINISTRATIVE AGENT HAVE ANY LIABILITY TO ANY BORROWER, ANY LENDER OR ANY OTHER PERSON FOR
DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY BORROWER’S
OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE
EXTENT SUCH DAMAGES ARE FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT
JURISDICTION TO HAVE RESULTED FROM SUCH PERSON’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
WITHOUT LIMITING THE FOREGOING, UNDER NO CIRCUMSTANCES SHALL THE ADMINISTRATIVE AGENT BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OF THE PLATFORM OR ANY BORROWER’S OR THE
ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET.

Each Lender agrees that notice to it (as provided in the next sentence) specifying that a
Communication has been posted to the Platform shall constitute effective delivery of such
Communication to such Lender for purposes of this Agreement. Each Lender agrees (i) to notify the
Administrative Agent from time to time of the e-mail address to which the foregoing notice may be
sent and (ii) that such notice may be sent to such e-mail address.

     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 the Commitments to such Borrower have not been irrevocably
terminated (except with respect to Section 5.02(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 PECO,
Genco and, on and after the PSEG Merger Date, PSE&G, 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

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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 such Special Purpose Subsidiary; (ix) 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; (x) in the case of Exelon (on and after the PSEG Merger Date), (A)
Liens granted under the PSE&G Mortgage and Liens permitted under the PSE&G Mortgage, and (B) Liens
securing PSE&G’s notes collateralized solely by mortgage bonds of PSE&G issued under the terms of
the PSE&G Mortgage, (xi) in the case of PECO 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 any Subsidiary thereof, the proceeds received from such sale
shall immediately be applied to retire mortgage bonds of PECO issued under the terms of the PECO
Mortgage, 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, Genco and their Subsidiaries, $1,000,000,000; (xii) in the case
of Exelon (on and after the PSEG Merger Date), Liens arising in connection with sale and leaseback
transactions entered into by PSE&G or a Subsidiary thereof, but only to the extent (I) the proceeds
received from such sale shall immediately be applied to retire mortgage bonds of PSE&G issued under
the terms of the PSE&G Mortgage, 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 PSE&G and its Subsidiaries, $50,000,000, (xiii)
Liens securing Permitted Obligations; and (xiv) Liens, other than those described in clauses
(i) through (xiii) of this Section 5.02(a), 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 Liens permitted by clause (xiv) of this Section 5.02(a) 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 Genco, $50,000,000 (prior to the Power Merger Date)
and $75,000,000 (on and after the Power Merger Date), and (III) 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 before and after 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

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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) Interest Coverage Ratio. Permit its Interest Coverage Ratio as of the last day of
any fiscal quarter to be less than (i) in the case of Exelon, 2.65 to 1.0; (ii) in the case of
PECO, 2.25 to 1.0; and (iii) in the case of Genco, 3.25 to 1.0.

          (d) Continuation of Businesses. Engage in, or permit any of its Subsidiaries (other
than any ComEd Entity or, on or after the PSEG Merger Date, Energy Holdings Entity) 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.

          (e) Capital Structure. In the case of Exelon, fail at any time to own, free and clear
of all Liens, 100% of the issued and outstanding common shares or other common ownership interests
of each of PECO and, on and after the PSEG Merger Date, PSE&G and 100% of the issued and
outstanding membership interests of Genco (or, in any such case, 100% of a holding company which
owns, free and clear of all Liens, at least 100% of the issued and outstanding common shares or
other common ownership interests of PECO or, on and after the PSEG Merger Date, PSE&G, as
applicable, or 100% of the issued and outstanding membership interests of Genco).

          (f) Restrictive Agreements. In the case of Exelon, permit Genco, PECO or, on and after
the PSEG Merger Date, PSE&G, or any holding company for any of the foregoing described in the
parenthetical clause at the end of Section 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 Wachovia Bank, National Association (f/k/a First Union National Bank), as
trustee, as amended and supplemented to the date hereof, or any other indenture that has terms
substantially similar to such Indenture and that relates to the issuance of trust preferred
securities, 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) PSE&G
relating to the priority payment of dividends on any outstanding shares of its prior preferred
stock and preference stock as set forth in its Restated Certificate of Incorporation, as in effect
on the date hereof.

ARTICLE VI

EVENTS OF DEFAULT

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     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 5.01(a)(vii), Section 5.01(b)(i) or Section 5.02, 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

          (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 hereunder, 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,

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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 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 Section 6.01(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 is reasonably
likely to result in the termination of any Plan or in the appointment by the appropriate United
States District Court of a trustee to administer a Plan shall have occurred and be continuing 60
days after written notice to such effect shall have been given to such Borrower by the
Administrative Agent; (ii) any Plan shall be terminated; (iii) a Trustee shall be appointed by an
appropriate United States District Court to administer any Plan; (iv) the PBGC shall institute
proceedings to terminate any Plan or to appoint a trustee to administer any Plan; or (v) any
Borrower or any member of the Controlled Group withdraws from any Multiemployer Plan;
provided that on the date of any event described in clauses (i) through (v)
above, the Unfunded Liabilities of the applicable Plan exceed
$100,000,000; and provided,
further, that no event described in this Section 6.01(g) that arises out of the
institution by or against any ComEd Entity of any bankruptcy, insolvency or similar proceeding
shall constitute an Event of Default with respect to any Borrower unless 15 days shall have elapsed
after the Majority Lenders have reasonably determined, and notified the Borrower in writing, that
such event has had or is reasonably likely to have a Material Adverse Effect (disregarding, solely
for purposes of this Section 6.01(g), subclause (b) of the proviso to clause
(i) of the definition of Material Adverse Effect) on such Borrower; or

          (h) 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

          (i) 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

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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 outstanding principal amount of the Advances to 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 outstanding principal
amount of such Advances, 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 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 outstanding principal amount of all Advances
to 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 enforcement or collection of the Notes), the
Administrative Agent shall not be required to exercise any discretion 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 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 limiting 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

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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, JPMCB 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 JPMCB in its individual capacity. JPMCB 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 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 limiting 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

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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, Syndication Agent and Co-Lead Arranger. The
titles “Co-Documentation Agent,” “Syndication Agent” and “Co-Lead Arranger” are purely honorific,
and no Person designated as a “Co-Documentation Agent,” the “Syndication Agent” or a “Co-Lead
Arranger” shall have any duties or responsibilities in such capacity.

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, in the
case of an amendment, the Borrowers, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided 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 or 3.02, (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

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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: Michael R. Metzner, Telecopy: (312) 394-5215;
if to any Lender, at its Domestic Lending Office specified in its Administrative Questionnaire or
in the Assignment and Acceptance pursuant to which it became a Lender; and if to the Administrative
Agent, at its address at 1 Chase Plaza, Mail Suite IL1-0010, Chicago, Illinois 60670, Attention:
Mr. Ron Cromey, Telecopy: (312) 385-7096 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.

     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
Co-Lead Arrangers 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 the reasonable fees, internal charges and out-of-pocket expenses of
counsel (including in-house counsel) for the Administrative Agent, the LC Issuer and the Co-Lead
Arrangers with respect thereto and with respect to advising the Administrative Agent, the LC Issuer
and the Co-Lead Arrangers 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 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, any Note issued by such Borrower and the other documents to
be delivered by such Borrower hereunder, including 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.

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          (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
Advances 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 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, any Note issued by such Borrower or the transactions contemplated
hereby, 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’
respective Sublimits at the time such claims, damages, losses, liabilities, costs or expenses
arose; provided 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 any Note 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 Advances to 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.

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The rights of each Lender under this Section 8.05 are in addition to other rights and
remedies (including 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 Section
8.07(g) shall to the extent required by such Section, assign to one or more banks or other
entities all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment, the Advances owing to it, its participation in Facility LCs and any Note
or Notes held by it); provided 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 $5,000,000 or, if less, the entire amount of such
Lender’s Commitment, and shall be an integral multiple of $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 any Note to a Federal

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Reserve Bank, provided that no such assignment shall 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 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, if any, 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, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and (iii) give
prompt notice thereof to the Borrowers.

          (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 all or a portion of its Commitment, the Advances owing to it, its

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participation in Facility LCs and any Note or Notes held by it); provided 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 any Note
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, 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, 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), 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. 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

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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 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(h) 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 ALL 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 ANY NOTE 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 ANY

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NOTE 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.

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

     SECTION 8.12 USA PATRIOT ACT NOTIFICATION. The following notification is provided to
the Borrowers pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government fight the
funding of terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each person or entity that
opens an account, including any deposit account, treasury management account, loan, other extension
of credit, or other financial services product. What this means for a Borrower: When any Borrower
opens an account, if such Borrower is an individual, the Administrative Agent and the Lenders will
ask for such Borrower’s name, residential address, tax identification number, date of birth, and
other information that will allow the Administrative Agent and the Lenders to identify such
Borrower, and, if such Borrower is not an individual, the Administrative Agent and the Lenders will
ask for such Borrower’s name, tax identification number, business address, and other information
that will allow the Administrative Agent and the Lenders to identify such Borrower. The
Administrative Agent and the Lenders may also ask, if such Borrower is an individual, to see such
Borrower’s driver’s license or other identifying documents, and, if such Borrower is not an
individual, to see such Borrower’s legal organizational documents or other identifying documents.

     SECTION 8.13 Termination of Existing Agreement. The Borrowers, the Lenders which are
parties to the Existing Agreement (which Lenders constitute the “Majority Lenders” as defined in
the Existing Agreement) and Bank One, NA, as Administrative Agent under the Existing Agreement,
agree that, on the Closing Date, 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).

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

-51-

 

     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:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 	 	 
	 	 	PECO ENERGY COMPANY
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title
	 
	 	 	 	 	 	 
	 	 	EXELON GENERATION COMPANY, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

 THE LENDERS 

	 	 	 	 	 	 	 
	 	 	BANK ONE, NA
(Main Office Chicago), as

Administrative Agent, as LC Issuer and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BARCLAYS BANK
PLC, as Syndication Agent 
and as a
Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CITIBANK, N.A.,
as Co-Documentation Agent 
and as
a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title:

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as

Co-Documentation Agent and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ABN AMRO BANK,
N.V., as Co-Documentation 

Agent and
as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	DRESDNER BANK AG, NEW YORK AND 
GRAND CAYMAN
BRANCHES
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	DEUTSCHE BANK AG NEW YORK BRANCH
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	LEHMAN BROTHERS BANK, FSB
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MORGAN STANLEY BANK
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH BANK USA
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	UBS LOAN FINANCE LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE NORTHERN TRUST COMPANY
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MELLON BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON, CAYMAN ISLANDS BRANCH
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:
	 	 	Title

Five Year Credit Agreement

 

 

SCHEDULE I

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:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Applicable	 	 	 	 
	 	 	Margin and LC	 	Facility Fee	 	 
	Status	 	Fee
Rate	 	Rate	 	Utilization Fee Rate
	Level I
	 	 	0.300	%	 	 	0.100	%	 	 	0.100	%
	Level II
	 	 	0.400	%	 	 	0.125	%	 	 	0.100	%
	Level III
	 	 	0.475	%	 	 	0.150	%	 	 	0.125	%
	Level IV
	 	 	0.575	%	 	 	0.175	%	 	 	0.125	%
	Level V
	 	 	0.750	%	 	 	0.250	%	 	 	0.250	%
	Level VI
	 	 	0.825	%	 	 	0.300	%	 	 	0.500	%

     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 table above 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 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 A2 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 A3 or better or such
Borrower’s S&P Rating is A- 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 Baa1
or better or such Borrower’s S&P Rating is BBB+ or better.

     “Level IV Status” exists at any date for a Borrower 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 Baa2 or better or such Borrower’s S&P Rating is BBB or better.

I-1

 

     “Level V Status” exists at any date if, on such date, (i) none of Level I Status, Level II
Status, Level III Status or Level IV 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 VI Status” exists at any date for a Borrower if, on such date, none of Level I Status,
Level II Status, Level III Status, Level IV Status or Level V Status exists for such Borrower.

     “Status” means Level I Status, Level II Status, Level III Status, Level IV Status, Level V
Status or Level VI Status.

     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 VI Status shall exist for such Borrower.

I-2

 

SCHEDULE II

COMMITMENTS

	 	 	 	 	 
	LENDER	 	COMMITMENT	 
	JPMorgan Chase Bank, N.A.
	 	$	55,000,000	 
	Barclays Bank PLC
	 	$	55,000,000	 
	Citibank, N.A.
	 	$	55,000,000	 
	Wachovia Bank, National Association
	 	$	55,000,000	 
	Deutsche Bank
	 	$	85,000,000	 
	Bank of America, N.A.
	 	$	43,000,000	 
	Morgan Stanley Bank
	 	$	43,000,000	 
	Merrill Lynch Bank USA
	 	$	33,000,000	 
	The Bank of Nova Scotia
	 	$	43,000,000	 
	Credit Suisse First Boston
	 	$	43,000,000	 
	KeyBank National Association
	 	$	43,000,000	 
	Lehman Brothers Bank, FSB
	 	$	43,000,000	 
	UBS Loan Finance LLC
	 	$	43,000,000	 
	BNP Paribas
	 	$	43,000,000	 
	The Bank of New York
	 	$	43,000,000	 
	Mellon Bank, N.A.
	 	$	26,000,000	 
	ABN AMRO Bank, N.V.
	 	$	55,000,000	 
	Dresdner Bank, AG New York and Grand Cayman Branches
	 	$	55,000,000	 
	The Northern Trust Company
	 	$	26,000,000	 
	U.S. Bank National Association
	 	$	26,000,000	 
	Wells Fargo Bank, N.A.
	 	$	26,000,000	 
	Mizuho Corporate Bank, Ltd.
	 	$	25,000,000	 
	Fifth Third Bank
	 	$	26,000,000	 
	Union Bank of California
	 	$	10,000,000	 
	 
	 	 	 
	TOTAL
	 	$	1,000,000,000	 
	 
	 	 	 

II-1

 

SCHEDULE III

EXISTING LETTERS OF CREDIT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Current	 	Original	 	 	 	 
	 	 	 	 	 	 	Amount	 	Amount	 	Actual	 	Adjusted
	Number	 	Type	 	Borrower	 	(in Dollars)	 	(in Dollars)	 	Expiration	 	Expiration
	00325419
	 	Standby Letter of Credit	 	Exelon	 	 	1,001,725.00	 	 	 	2,155,500.00	 	 	31-Oct-2004	 	19-Dec-2004
	00326103
	 	Standby Letter of Credit	 	Exelon	 	 	2,884,188.00	 	 	 	12,500,000.00	 	 	31-Dec-2004	 	19-Dec-2004
	00330868
	 	Standby Letter of Credit	 	Exelon	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	30-Jun-2004	 	30-Jun-2004
	SLT325319
	 	Standby Letter of Credit	 	Exelon	 	 	220,000.00	 	 	 	200,000.00	 	 	20-May-2005	 	20-Nov-2004
	SLT325320
	 	Standby Letter of Credit	 	Exelon	 	 	1,587,411.62	 	 	 	1,587,411.62	 	 	20-May-2005	 	20-Nov-2004
	00326643
	 	Standby Letter of Credit	 	Exelon	 	 	5,500,000.00	 	 	 	5,500,000.00	 	 	31-May-2005	 	31-May-2005
	00326644
	 	Standby Letter of Credit	 	Exelon	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	31-May-2005	 	31-May-2005
	00325420
	 	Standby Letter of Credit	 	Exelon	 	 	87,669.00	 	 	 	87,669.00	 	 	31-Jul-2004	 	31-Jul-2005
	SLT326297
	 	Standby Letter of Credit	 	Exelon	 	 	60,600.00	 	 	 	60,600.00	 	 	15-Nov-2004	 	15-Nov-2005
	00325611
	 	Standby Letter of Credit	 	Exelon	 	 	3,400,000.00	 	 	 	3,400,000.00	 	 	1-Oct-2004	 	19-Dec-2004
	00325715
	 	Standby Letter of Credit	 	Exelon	 	 	20,000.00	 	 	 	20,000.00	 	 	10-Oct-2004	 	10-Oct-2004
	00326947
	 	Standby Letter of Credit	 	Exelon	 	 	1,700,000.00	 	 	 	1,700,000.00	 	 	12-Aug-2004	 	12-Aug-2005
	00330949
	 	Standby Letter of Credit	 	Exelon	 	 	185,000.00	 	 	 	185,000.00	 	 	9-Feb-2005	 	9-Feb-2005
	SLT751645
	 	Standby Letter of Credit	 	Exelon Generation	 	 	7,000,000.00	 	 	 	10,000,000.00	 	 	21-Nov-2004	 	7-Oct-2004
	SLT752101
	 	Standby Letter of Credit	 	Exelon Generation	 	 	1,150,000.00	 	 	 	1,150,000.00	 	 	4-Dec-2004	 	4-Dec-2004
	00325698
	 	Standby Letter of Credit	 	Exelon Generation	 	 	250,000.00	 	 	 	250,000.00	 	 	30-Sep-2004	 	30-Sep-2004
	SLT332490
	 	Standby Letter of Credit	 	Exelon Generation	 	 	250,000.00	 	 	 	250,000.00	 	 	30-Sep-2004	 	30-Jun-2004
	00325858
	 	Standby Letter of Credit	 	Exelon Generation	 	 	390,000.00	 	 	 	2,200,000.00	 	 	30-Nov-2004	 	30-Nov-2004
	00325446
	 	Standby Letter of Credit	 	Exelon Generation	 	 	50,000.00	 	 	 	45,000.00	 	 	31-May-2005	 	31-May-2005
	00330190
	 	Standby Letter of Credit	 	Exelon Generation	 	 	2,000,000.00	 	 	 	2,000,000.00	 	 	30-Sep-2004	 	30-Sep-2004
	00326663
	 	Standby Letter of Credit	 	Exelon Generation	 	 	635,000.00	 	 	 	575,000.00	 	 	31-May-2005	 	31-May-2005
	00329840
	 	Standby Letter of Credit	 	Exelon Generation	 	 	335,000.00	 	 	 	1,400,000.00	 	 	31-Mar-2005	 	31-Mar-2005
	00330867
	 	Standby Letter of Credit	 	Exelon Generation	 	 	250,000.00	 	 	 	2,000,000.00	 	 	31-Aug-2004	 	31-Aug-2005

III-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Current	 	Original	 	 	 	 
	 	 	 	 	 	 	Amount	 	Amount	 	Actual	 	Adjusted
	Number	 	Type	 	Borrower	 	(in Dollars)	 	(in Dollars)	 	Expiration	 	Expiration
	00326414
	 	Standby Letter of Credit	 	Exelon Generation	 	 	100,000.00	 	 	 	2,000,000.00	 	 	23-Apr-2005	 	24-Apr-2005
	SLT751658
	 	Standby Letter of Credit	 	Exelon Generation	 	 	1,252,000.00	 	 	 	950,000.00	 	 	5-Dec-2004	 	5-Dec-2004
	00325638
	 	Standby Letter of Credit	 	Exelon Generation	 	 	1,700,000.00	 	 	 	1,700,000.00	 	 	19-Dec-2004	 	19-Dec-2004
	00330901
	 	Standby Letter of Credit	 	Exelon Generation	 	 	7,325,000.00	 	 	 	6,125,000.00	 	 	1-Dec-2004	 	1-Dec-2004
	00331843
	 	Standby Letter of Credit	 	Exelon Generation	 	 	3,500,000.00	 	 	 	1,500,000.00	 	 	14-Apr-2005	 	14-Apr-2005
	SLT330230
	 	Standby Letter of Credit	 	Exelon Generation	 	 	250,000.00	 	 	 	250,000.00	 	 	12/1/04	 	1-Dec-2004
	SLT751677
	 	Standby Letter of Credit	 	Exelon Generation	 	 	1,700,000.00	 	 	 	1,700,000.00	 	 	30-Jun-2005	 	30-Jun-2005
	SLT751676
	 	Standby Letter of Credit	 	Exelon Generation	 	 	200,000.00	 	 	 	200,000.00	 	 	30-Jun-2005	 	30-Jun-2005
	SLT751674
	 	Standby Letter of Credit	 	Exelon Generation	 	 	2,268,926.00	 	 	 	1,211,426.00	 	 	30-Jun-2005	 	30-Jun-2005
	SLT751678
	 	Standby Letter of Credit	 	Exelon Generation	 	 	2,300,000.00	 	 	 	2,300,000.00	 	 	30-Jun-2005	 	30-Jun-2005
	SLT751675
	 	Standby Letter of Credit	 	Exelon Generation	 	 	300,000.00	 	 	 	300,000.00	 	 	30-Jun-2005	 	30-Jun-2005
	SLT751673
	 	Standby Letter of Credit	 	Exelon Generation	 	 	3,628,504.00	 	 	 	2,335,904.00	 	 	30-Jun-2005	 	30-Jun-2005
	SLT751670
	 	Standby Letter of Credit	 	Exelon Generation	 	 	45,000,000.00	 	 	 	45,000,000.00	 	 	30-Jun-2005	 	30-Jun-2005
	SLT752168
	 	Standby Letter of Credit	 	Exelon Generation	 	 	50,000,000.00	 	 	 	50,000,000.00	 	 	25-Jan-2005	 	26-Jan-2005
	SLT751672
	 	Standby Letter of Credit	 	Exelon Generation	 	 	250,000.00	 	 	 	250,000.00	 	 	30-Jun-2005	 	7-Jul-2004
	SLT751679
	 	Standby Letter of Credit	 	Exelon Generation	 	 	590,000.00	 	 	 	575,000.00	 	 	30-Jun-2005	 	30-Jun-2005
	SLT751667
	 	Standby Letter of Credit	 	Exelon Generation	 	 	325,000.00	 	 	 	315,000.00	 	 	30-Jun-2005	 	30-Jun-2005
	SLT751684
	 	Standby Letter of Credit	 	Exelon Generation	 	 	4,050,000.00	 	 	 	7,500,000.00	 	 	30-Jul-2004	 	30-Jul-2004
	SLT751685
	 	Standby Letter of Credit	 	Exelon Generation	 	 	2,194,653.00	 	 	 	2,194,653.00	 	 	30-Jun-2005	 	30-Jun-2005

III-2

 

SCHEDULE IV

EXISTING TAX EXEMPT DEBT ISSUANCES

Exelon Corp. Tax-exempt Debt — As of 6/30/04

PECO

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Series	 	Rate	 	Issue Date	 	Maturity	 	Call Date	 	Call Price	 	Principal	 	 	CUSIP	 
	Delaware Co. 1988 Ser. A
	 	Auction	 	4/1/93	 	12/1/12	 	 	 	 	 	$	50,000,000	 	 	 	246015AV3	 
	Delaware Co. 1988 Ser. B
	 	Auction	 	4/1/93	 	12/1/12	 	 	 	 	 	$	50,000,000	 	 	 	246015AW1	 
	Delaware Co. 1988 Ser. C
	 	Auction	 	4/1/93	 	12/1/12	 	 	 	 	 	$	50,000,000	 	 	 	246015AX9	 
	Salem Co. 1988 Ser. A
	 	Auction	 	4/1/93	 	12/1/12	 	 	 	 	 	$	4,200,000	 	 	 	794103AY7	 
	Delaware Co. 1999 Ser. A
	 	5.2% 5yrPUT	 	10/14/99	 	4/1/21	 	9/30/04	 	Par	 	$	50,765,000	 	 	 	246015BE0	 
	Montgomery Co. 1999 Ser. A
	 	5.2% 5yrPUT	 	10/14/99	 	10/1/30	 	9/30/04	 	Par	 	$	91,775,000	 	 	 	6130RAB2	 
	Montgomery Co. 1999 Ser. B
	 	5.3% 5yrPUT	 	10/14/99	 	10/1/34	 	9/30/04	 	Par	 	$	13,880,000	 	 	 	6130RAC0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Total	 	 	 	 	 	$	310,620,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Genco

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Series	 	Rate	 	Issue Date	 	Maturity	 	Call Date	 	Call Price	 	Principal	 	 	CUSIP	 
	Montgomery Co. 2001 Ser. B
	 	CP	 	9/5/01	 	10/1/30	 	 	 	 	 	$	68,795,000	 	 	 	61360QAA6	 
	Delaware Co. 2001 Ser. A
	 	CP	 	4/25/01	 	4/1/21	 	 	 	 	 	$	39,235,000	 	 	 	24601VAA2	 
	Montgomery Co. 2001 Ser. A
	 	CP	 	4/25/01	 	10/1/34	 	 	 	 	 	$	13,150,000	 	 	 	61360RAD8	 
	Delaware Co. 1993 Ser. A
	 	CP	 	8/24/93	 	8/1/16	 	 	 	 	 	$	24,125,000	 	 	 	24601TAJ8	 
	Salem Co. 1993 Ser. A
	 	CP	 	9/9/93	 	3/1/25	 	 	 	 	 	$	23,000,000	 	 	 	79410QAX8	 
	Montgomery Co. 1994 Ser. A
	 	CP	 	2/14/95	 	6/1/29	 	 	 	 	 	$	82,560,000	 	 	 	613609NX	 
	Montgomery Co. 1994 Ser. B
	 	CP	 	7/2/95	 	6/1/29	 	 	 	 	 	$	13,340,000	 	 	 	613609NY	 
	York County 1993 Ser. A
	 	CP	 	8/24/93	 	8/1/16	 	 	 	 	 	$	18,440,000	 	 	 	98640TAE6	 
	Montgomery Co. 1996 Ser. A
	 	CP	 	3/27/96	 	3/1/34	 	 	 	 	 	$	34,000,000	 	 	 	61360RAA4	 
	Montgomery Co. 2002 Ser. A
	 	CP	 	7/24/02	 	12/1/29	 	 	 	 	 	$	29,530,000	 	 	 	61360SAA2	 
	Indiana Co. 2003 A
	 	Weekly	 	6/3/03	 	6/1/27	 	 	 	 	 	$	17,240,000	 	 	 	454695AJ6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Total	 	 	 	 	 	$	363,415,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

IV-1

 

EXHIBIT A

FORM OF NOTE

Dated: [           ], 20__

     FOR VALUE RECEIVED, the undersigned,                    , a                      (the “Borrower”), HEREBY
PROMISES TO PAY to the order of                      (the “Lender”), for the account of its Applicable
Lending Office (such term and other capitalized terms herein being used as defined in the Credit
Agreement referred to below) on the Maturity Date, the aggregate principal amount of all
outstanding Advances made by the Lender to the Borrower pursuant to the Credit Agreement.

     The Borrower further promises to pay interest on the unpaid principal amount of each Advance
from the date of such Advance until such principal amount is paid in full, at such interest rates,
and payable at such times, as are specified in the Credit Agreement.

     Both principal and interest are payable in lawful money of the United States of America to
JPMorgan Chase Bank, N.A., as Administrative Agent, at 1 Chase Plaza, Chicago, Illinois 60670, in
immediately available funds. Each Advance made by the Lender to the Borrower pursuant to the
Credit Agreement, and all payments made on account of principal thereof, shall be recorded by the
Lender and, at the Lender’s option, endorsed on the grid attached hereto which is part of this
Promissory Note.

     This Promissory Note is one of the Notes referred to in, and is entitled to the benefits of,
the Five Year Credit Agreement dated as of July 16, 2004 among the Borrower, [Exelon Corporation,
PECO Energy Company, Exelon Generation Company, LLC], various financial institutions and JPMorgan
Chase Bank, N.A., as Administrative Agent (as amended, modified or supplemented from time to time,
the “Credit Agreement”). The Credit Agreement, among other things, (i) provides for the making of
Advances by the Lender to the Borrower from time to time in an aggregate amount not to exceed at
any time outstanding the Lender’s Pro Rata Share of the Borrower’s Sublimit at such time and (ii)
contains provisions for acceleration of the maturity hereof upon the happening of certain stated
events and also for prepayments on account of principal hereof prior to the maturity hereof upon
the terms and conditions therein specified.

     The Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to
exercise, and no delay in exercising, any rights hereunder on the part of the holder hereof shall
operate as a waiver of such rights.

A-1

 

     THIS PROMISSORY NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA

	 	 	 	 	 
	 	[EXELON CORPORATION]

[PECO ENERGY COMPANY]

[EXELON GENERATION COMPANY, LLC]

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-2

 

	 	 	 	 	 

ADVANCES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Amount of	 	 
	 	 	 	 	Principal	 	Unpaid	 	 
	 	 	Amount of	 	Paid or	 	Principal	 	Notation
	Date	 	Advance	 	Prepaid	 	Balance	 	Made By
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 

A-3

 

EXHIBIT B

FORM OF NOTICE OF BORROWING

JPMorgan Chase Bank, N.A.,

as Administrative Agent,

and the Lenders that are parties to

the Credit Agreement referred to below

1 Chase Plaza

Chicago, Illinois 60670

[Date]

Attention: Utilities Department

North American Finance Group

Ladies and Gentlemen:

          The undersigned, [Exelon Corporation] [PECO Energy Company] [Exelon Generation Company, LLC],
refers to the Five Year Credit Agreement, dated as of July 16, 2004, among Exelon Corporation, PECO
Energy Company, Exelon Generation Company, LLC, various financial institutions and JPMorgan Chase
Bank, N.A., as Administrative Agent (as amended, modified or supplemented from time to time, the
“Credit Agreement”), and hereby gives you notice, irrevocably, pursuant to Section 2.02(a) of the
Credit Agreement that the undersigned requests a Borrowing under the Credit Agreement, and in that
connection sets forth below the information relating to such Borrowing (the “Proposed Borrowing”)
as required by Section 2.02(a) of the Credit Agreement:

     (i) The Business Day of the Proposed Borrowing is ___, 20___.

     (ii) The Type of Advances to be made in connection with the Proposed Borrowing is
[Base Rate Advances] [Eurodollar Rate Advances].

     (iii) The aggregate amount of the Proposed Borrowing is $                    .

     (iv) The Interest Period for each Advance made as part of the Proposed
Borrowing is [___ month[s]].

          The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Borrowing:

     (A) the representations and warranties of the undersigned contained in Section 4.01
of the Credit Agreement (excluding, if the proceeds of the Proposed Borrowing will be used
exclusively to repay commercial paper issued by the undersigned, the representations and
warranties set forth in Section 4.01(e) and the first sentence of Section 4.01(f) of the
Credit Agreement) are correct, before and after giving effect to the Proposed Borrowing
and to the application of the proceeds therefrom, as though made on and as of such date;

B-1

 

     (B) no event has occurred and is continuing, or would result from such Proposed
Borrowing or from the application of the proceeds therefrom, that constitutes an Event of
Default or Unmatured Event of Default; and

     (C) after giving effect to the Proposed Borrowing, the undersigned will not have
exceeded any limitation on its ability to incur indebtedness (including any limitation
imposed by any governmental or regulatory authority).

Very truly yours,

[EXELON CORPORATION]

[PECO ENERGY COMPANY]

[EXELON GENERATION COMPANY, LLC]

By                                                            

     Name:

     Title:

B-2

 

EXHIBIT C

FORM OF ASSIGNMENT AND ACCEPTANCE

     This
Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective
Date set forth below and is entered into by and between [Insert name of
Assignor] (the “Assignor”) and [ Insert name of Assignee ] (the
“Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them
in the Second Amended and Restated Credit Agreement identified below (as amended, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Terms and
Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Agent as contemplated below, the interest in and to all of the
Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto that represents the amount and percentage
interest identified below of all of the Assignor’s outstanding rights and obligations under the
respective facilities identified below (including without limitation any letters of credit,
guaranties and swingline loans included in such facilities and, to the extent permitted to be
assigned under applicable law, all claims (including without limitation contract claims, tort
claims, malpractice claims, statutory claims and all other claims at law or in equity), suits,
causes of action and any other right of the Assignor against any Person whether known or unknown
arising under or in connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby)
(the “Assigned Interest”).
Such sale and assignment is without recourse to the Assignor and, except as expressly provided in
this Assignment and Assumption, without representation or warranty by the Assignor.

	1.	 	Assignor:                         
	 
	2.	 	Assignee:                         
[and is an affiliate of Assignor]
	 
	3.	 	Borrowers: Exelon Corporation, PECO Energy Company and Exelon
Generation Company, LLC
	 
	4.	 	Agent: JPMorgan Chase Bank, N.A.
	 
	5.	 	Credit Agreement: Five Year Credit Agreement, dated as of July 16, 2004, among the
Borrowers, the Lenders party thereto, and the Agent.

C-1

 

	6.	 	Assigned Interest:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	 	 	 
	 	 	Commitment/	 	 	 	 
	 	 	Outstanding Credit	 	Amount of Commitment/	 	Percentage Assigned of
	 	 	Exposure for all	 	Outstanding Credit Exposure	 	Commitment/ Outstanding
	Facility Assigned	 	Lenders*	 	Assigned*	 	Credit Exposure1
	                    
	 	$	 	 	 	$	 	 	 	 	                    	%
	                    
	 	$	 	 	 	$	 	 	 	 	                    	%
	                    
	 	$	 	 	 	$	 	 	 	 	                    	%

7. Trade
Date:                                 
                                 
                              
                         2

Effective Date:
                                                  , 20___ TO BE INSERTED BY AGENT AND WHICH SHALL BE THE
EFFECTIVE DATE OF RECORDATION OF TRANSFER BY THE AGENT.]

     The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	 	ASSIGNOR
	 	 	[NAME OF ASSIGNOR]
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	          Title:
	 	 	ASSIGNEE
	 	 	[NAME OF ASSIGNEE]
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	          Title:

[Consented to and]3 Accepted:

JPMORGAN CHASE BANK, N.A., as Agent

By:                                        

Title:

[Consented to:]4

[NAME OF RELEVANT PARTY]

By:                                        

Title:

 

			
	*	 	Amount to be adjusted by the counterparties to take into account any
payments or prepayments made between the Trade Date and the Effective Date.
	 
	1	 	Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all
Lenders thereunder.
	 
	2	 	Insert if satisfaction of minimum amounts is to be determined as of the Trade Date.
	 
	3	 	To be added only if the consent of the Administrative Agent is required by the terms of the Credit
Agreement.
	 
	4	 	To be added only if the consent of the Borrowers and/or other parties (e.g. LC Issuer) is required by the
terms of the Credit Agreement.

C-2

 

ANNEX 1

TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

     1. Representations
and Warranties.

     1.1
Assignor. The Assignor represents and warrants that (i) it is the legal and beneficial
owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien,
encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all
action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby. Neither the Assignor nor any of its officers, directors,
employees, agents or attorneys shall be responsible for (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other Credit Document,
(ii) the execution, legality, validity, enforceability, genuineness, sufficiency, perfection,
priority, collectibility, or value of the Credit Documents or any collateral thereunder, (iii) the
financial condition of the Company, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Credit Document, (iv) the performance or observance by the Company, any
of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under
any Credit Document, (v) inspecting any of the property, books or records of the Company, or any
guarantor, or (vi) any mistake, error of judgment, or action taken or omitted to be taken in
connection with the Credit Extensions or the Credit Documents.

     1.2.
Assignee. The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) from and after the Effective Date, it shall be bound by the provisions of
the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have
the obligations of a Lender thereunder, (iii) agrees that its payment instructions and notice
instructions are as set forth in Schedule 1 to this Assignment and Assumption, (iv) confirms that
none of the funds, monies, assets or other consideration being used to make the purchase and
assumption hereunder are “plan assets” as defined under ERISA and that its rights, benefits and
interests in and under the Credit Documents will not be “plan assets” under ERISA, (v) agrees to
indemnify and hold the Assignor harmless against all losses, costs and expenses (including, without
limitation, reasonable attorneys’ fees) and liabilities
incurred by the Assignor in connection with or arising in any manner from the Assignee’s
non-performance of the obligations assumed under this Assignment and Assumption, (vi) it has
received a copy of the Credit Agreement, together with copies of financial statements and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without reliance on the
Agent or any other Lender, and (vii) attached as Schedule 1 to this Assignment and Assumption is
any documentation required to be delivered by the Assignee with respect to its tax status pursuant
to the terms of the Credit Agreement, duly completed and executed by the Assignee and (b) agrees
that (i) it will, independently and without reliance on the Agent, the Assignor 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

C-3

 

under the Credit Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Documents are required to be performed by it as a
Lender.

     2. Payments. The Assignee shall pay the Assignor, on the Effective Date, the amount agreed to
by the Assignor and the Assignee. From and after the Effective Date, the Agent shall make all
payments in respect of the Assigned Interest (including payments of principal, interest,
Reimbursement Obligations, fees and other amounts) to the Assignor for amounts which have accrued
to but excluding the Effective Date and to the Assignee for amounts which have accrued from and
after the Effective Date.

     3. General
Provisions. This Assignment and Assumption shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and assigns. This Assignment and
Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of New York.

C-4

 

ADMINISTRATIVE QUESTIONNAIRE

(Schedule to be supplied by Closing Unit or Trading Documentation Unit)

C-5

 

US AND NON-US TAX INFORMATION REPORTING REQUIREMENTS

(Schedule to be supplied by Closing Unit or Trading Documentation Unit)

C-6

 

EXHIBIT
D - 1

FORM OF OPINION OF BALLARD SPAHR ANDREWS & INGERSOLL

July 16, 2004

To each of the Agents and the Lenders which is
a party to the Credit Agreement, dated as of July 16, 2004,
among Exelon Corporation,
Commonwealth Edison Company, PECO Energy
Company and Exelon Generation Company, LLC,
as Borrowers, the various financial institutions
named therein, as Lenders and Bank One, NA,
as Administrative Agent

          Re:
$1,000,000,000 Five-Year Credit Agreement

Ladies and Gentlemen:

          This opinion letter is furnished to you pursuant to Section 3.01(v) of the $1,000,000,000
Five-Year Credit Agreement, dated as of July 16, 2004(the “Agreement”), among Exelon Corporation
(“Exelon”), Commonwealth Edison Company (“ComEd”), PECO Energy Company (“PECO”) and Exelon
Generation Company, LLC (“Genco”), as Borrowers, the various financial institutions named therein,
as Lenders and Bank One, NA, as Administrative Agent. Unless otherwise specified, terms defined in
the Agreement are used herein as therein defined.

          We have acted as counsel for Exelon, Genco and PECO (collectively, the “Pennsylvania
Borrowers”) in connection with the preparation, execution and delivery of the Agreement and as
local counsel for ComEd with respect to certain matters of Pennsylvania law relating to the
Agreement. In that capacity, we have examined the following:

     (i) The Agreement, the Notes executed by Exelon (the “Exelon Notes”), the Notes executed by
PECO (the “PECO Notes”), the Notes executed by Genco (the “Genco Notes”) and the Notes executed
by ComEd (the “ComEd Notes” and, together with the Exelon Notes, the PECO Notes and the Genco
Notes, the “Notes”);

     (ii) The documents furnished by each of the Pennsylvania Borrowers pursuant to Section 3.01
of the Agreement; 

     (iii) The Articles of Incorporation of each of Exelon and PECO and all
amendments thereto (in each case, its “Charter”);

     (iv) The by-laws of each of Exelon and PECO and all amendments thereto (in each case, its “By-laws”);

     (v) the Operating Agreement of Genco and all amendments thereto (the “Operating Agreement”);

D-1-1

 

     (vi) certificate from the Secretary of State of the Commonwealth of
Pennsylvania dated [ ], 2004 certifying as to the subsistence of Exelon in Pennsylvania;

     (vii) certificate from the Secretary of State of the Commonwealth of Pennsylvania dated [ ],
2004 certifying as to the subsistence of PECO in Pennsylvania; and

     (viii) A certificate from the Secretary of State of the Commonwealth of
Pennsylvania dated [ ], 2004 certifying as to the subsistence of Genco in Pennsylvania;

          We have also examined, and relied upon the accuracy of factual matters contained in, originals
or copies, certified or otherwise identified to our satisfaction, of such other corporate or
organizational records of the Pennsylvania Borrowers, certificates or comparable documents of
public officials and of officers of the Pennsylvania Borrowers, and such other agreements,
instruments and documents and have made such examinations of law as we have deemed necessary in
connection with the opinions set forth below.

          We have assumed the legal capacity and competence of natural persons, the genuineness of all
signatures, the authenticity of all documents submitted to us as originals and the conformity to
original documents of documents submitted to us as certified, conformed, photostatic, electronic or
facsimile copies. We have made no independent factual investigation other than as described above,
and as to other factual matters, we have relied exclusively on the facts stated in the
representations and warranties contained in the Agreement and the Exhibits and Schedules to the
Agreement (other than representations and warranties constituting conclusions of law on matters on
which we opine). We have not examined any records of any court, administrative tribunal or other
similar entity in connection with our opinion.

          When an opinion or confirmation is given to our knowledge or with reference to matters of
which we are aware or which are known to us, or with another similar qualification, the relevant
knowledge or awareness is limited to the actual contemporaneous knowledge or awareness of facts,
without investigation, by the lawyer who is the current primary contact for each of the
Pennsylvania Borrowers and the individual lawyers in this firm who have participated in the
specific transaction to which this opinion letter relates.

          We have also assumed, without verification, (i) that the parties to the Agreement and the
other agreements, instruments and documents executed in connection therewith, other than the
Borrowers, have the power (including, without limitation, corporate power where applicable) and
authority to enter into and perform the Agreement and such other agreements, instruments and
documents, (ii) the due authorization, execution and delivery by such parties other than the
Borrowers of the Agreement and such other agreements, instruments and documents, (iii) that the
Agreement and such
other agreements, instruments and documents constitute legal, valid and binding obligations of
each such party other than the Borrowers, enforceable against each such other party in accordance
with their respective terms and (iv) the amount of a Borrower’s borrowings outstanding under the
Agreement and the $500,000,000 3-Year Credit Agreement to which each Borrower is a party will not
exceed the amount such Borrower is authorized to borrow under any approval referred to in
Paragraphs 4 and 8 below.

D-1-2

 

       Based upon the foregoing and subject to the assumptions, exceptions, limitations and
qualifications set forth herein, we are of the opinion that:

     1. Each of Exelon and PECO is a corporation duly incorporated and presently
subsisting under the laws of the Commonwealth of Pennsylvania. Genco is a limited
liability company duly formed and presently subsisting under the laws of the Commonwealth
of Pennsylvania.

     2. The execution and delivery, and the performance of the obligations thereunder, by
the Pennsylvania Borrowers of the Agreement and the applicable Notes (a) are within the
Pennsylvania Borrowers’ corporate or limited liability company powers, (b) have been duly
authorized by all necessary corporate and limited liability company action of each of the
Pennsylvania Borrowers, (c) do not (i) violate the Charter, By-laws or the Operating
Agreement, as the case may be, of each of the Pennsylvania Borrowers, (ii) violate any
present statute, rule or regulation promulgated by the United States or the Commonwealth
of Pennsylvania or (iii) to our knowledge, breach or result in a default under any
agreement or instrument to which any of the Pennsylvania Borrowers is a party or by which
any of the Pennsylvania Borrowers is bound and (d) to our knowledge, do not result in the
creation or imposition of any lien, security interest or other charge or encumbrance upon
or with respect to any of the properties of the Pennsylvania Borrowers pursuant to such
agreements or instruments referred to in clause (c)(iii), except security interests and
liens created under the Agreement.

     3. The execution, delivery and performance by ComEd of the
Agreement and the ComEd Notes do not violate any present statute, rule or
regulation promulgated by the Commonwealth of Pennsylvania.

     4. No consent or approval of, or notice to or filing with, any federal or state
regulatory authority of the United States or the Commonwealth of Pennsylvania is required
by the Pennsylvania Borrowers in connection with the execution or delivery by the
Pennsylvania Borrowers of the Agreement or the applicable Notes, except for, in the case
of Exelon and Genco, the authorization of the U.S. Securities and Exchange Commission
under the Public Utility Holding Company Act of 1935 and, in the case of PECO, approval
from the Public Utility Commission of the Commonwealth of Pennsylvania, which
authorization and approval have been received and are in full force and effect.

     5. The Agreement and the Exelon Notes have been duly executed and delivered by
Exelon, and the Agreement and the Exelon Notes constitute the legal, valid and binding
obligations of Exelon, enforceable against Exelon in accordance with their respective
terms.

     6. The Agreement and the PECO Notes have been duly executed and delivered by PECO,
and the Agreement and the PECO Notes constitute the legal, valid and binding obligations
of PECO, enforceable against PECO in accordance with their respective terms.

     7. The Agreement and the Genco Notes have been duly executed and delivered by Genco,
and the Agreement and the Genco Notes constitute the legal,

D-1-3

 

valid and binding obligations of Genco, enforceable against Genco in accordance with their
respective terms.

     8. Assuming that the execution, delivery and performance of the Agreement and the
ComEd Notes are within ComEd’s corporate power and the Agreement and the ComEd Notes have
been duly authorized, executed and delivered by ComEd after receipt of all required
governmental and regulatory approvals, the Agreement and the ComEd Notes constitute the
legal, valid and binding obligations of ComEd, enforceable against ComEd in accordance
with their respective terms.

     9. None of the Pennsylvania Borrowers is an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act
of 1940, as amended.

        We do not have knowledge, after inquiry of each lawyer in this firm who is the current primary
contact for the Borrowers or who has devoted substantive attention to matters on behalf of the
Borrowers during the preceding twelve months and who is still currently employed by or a member of
this firm, except as disclosed in Exelon’s Annual Report on Form 10-K for the year ended December
31, 2003 or Exelon’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, no
litigation or governmental proceeding is pending or threatened in writing against any Borrower (i)
with respect to the Agreement or the Notes, or (ii) which is likely to have a material adverse
effect upon the financial condition, business, properties or prospects of any Borrower and its
subsidiaries taken as a whole.

        The foregoing opinions are subject to the following exceptions, limitations and
qualifications:

     (a) Our opinions are subject to the effect of applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, fraudulent transfer marshalling or
similar laws affecting creditors’ rights and remedies generally; general principles of
equity, including without limitation, concepts of
materiality, reasonableness, good faith and fair dealing (regardless of whether such
enforceability is considered in a proceeding in equity or at law); and limitations on
enforceability of rights to indemnification or contribution by federal or state securities
laws or regulations or by public policy.

     (b) We draw your attention to the provisions of Section 911(b) of the Pennsylvania
Crimes Code (the “Crimes Code”), 18 Pa. C.S.§ 911(b), in connection with the fact that the
Advances bear floating rates of interest. Section 911(b) of the Crimes Codes makes it
unlawful to use or invest income derived from a pattern of “racketeering activity” in the
establishment or operation of any enterprise. “Racketeering activity,” as defined in the
Crimes Code, includes the collection of money or other property in full or partial
satisfaction of a debt which arose as the result of the lending of money or other property
at a rate of interest exceeding 25% per annum where not otherwise authorized by law.

     (c) We express no opinion as to the application or requirements of federal or state
securities (except with respect to the opinion in paragraph 9),

D-1-4

 

patent, trademark, copyright, antitrust and unfair competition, pension or employee
benefit, labor, environmental health and safety or tax laws in respect of the transactions
contemplated by or referred to in the Agreement.

     (d) We express no opinion as to the validity or enforceability of any provision of
the Agreement or the Notes which (i) permits the Lenders to increase the rate of interest
or to collect a late charge in the event of delinquency or default to the extent deemed to
be penalties or forfeitures; (ii) purports to be a waiver by any Borrower of any right or
benefit except to the extent permitted by applicable law; (iii) purports to require that
waivers must be in writing to the extent that an oral agreement or implied agreement by
trade practice or course of conduct modifying provisions of the Agreement or the Notes has
been made; (iv) purports to exculpate any party from its own negligent acts; or (v)
purports to authorize any Participant to set off and apply any deposits at any time held,
and any other indebtedness at any time owing, by such Participant to or for the account of
any Borrower.

      We express no opinion as to the law of any jurisdiction other than the law of the Commonwealth
of Pennsylvania and the federal law of the United States.

      A copy of this opinion may be delivered by you to each financial institution that may become a
Lender under the Agreement, and such persons may rely on this opinion as if it were addressed to
them and had been delivered to them on the date hereof. This opinion may be relied on by you and
such persons to whom you may deliver copies as provided in the preceding sentence only in
connection with the consummation of the transactions described herein and may not be used or relied
upon by you or any other person for any other purpose, without in each instance our prior written
consent.

      This opinion is limited to the matters expressly stated herein. No implied opinion may be
inferred to extend this opinion beyond the matters expressly stated herein. We do not undertake to
advise you or anyone else of any changes in the opinions expressed herein resulting from changes in
law, changes in facts or any other matters that hereafter might occur or be brought to our
attention.

Very truly yours,

BALLARD SPAHR ANDREWS & INGERSOLL

D-1-5

 

EXHIBIT D-2

FORM OF OPINION OF SIDLEY AUSTIN BROWN & WOOD LLP

July 16, 2004

To each of the Agents and Lenders party to the Five Year
Credit Agreement dated as of July 16, 2004 among Exelon
Corporation, Commonwealth Edison Company, PECO Energy
Company and Exelon Generation Company, LLC, as Borrowers,
the various financial institutions named therein, as
Lenders, and Bank One, NA, as Administrative Agent

Ladies and Gentlemen:

          We have been asked to furnish this letter to you pursuant to Section 3.01(b)(v) of the Five
Year Credit Agreement dated as of July 16, 2004 (the “Credit Agreement”) among Exelon Corporation
(“Exelon”), Commonwealth Edison Company (“ComEd”), PECO Energy Company (“PECO”) and Exelon
Generation Company, LLC (“Genco”), as Borrowers, various financial institutions, as Lenders, and
Bank One, NA, as Administrative Agent. Unless otherwise defined in this letter, capitalized terms
defined in the Credit Agreement are used herein as therein defined.

          We have acted as Illinois counsel to ComEd in connection with the execution and delivery of
the Credit Agreement and the Notes executed and delivered by ComEd (the “ComEd Notes”). In that
capacity, we have examined:

	 	(i)	 	the Credit Agreement;
	 
	 	(ii)	 	the ComEd Notes;
	 
	 	(iii)	 	the Restated Articles of Incorporation of ComEd and all amendments thereto (the
“ComEd Charter”); and
	 
	 	(iv)	 	the by-laws of ComEd and all amendments thereto (the “ComEd By-Laws”).

     We are familiar with the corporate proceedings taken by ComEd in connection with the Credit
Agreement and the transactions contemplated thereby. For purposes of
expressing the opinions expressed in this letter, we have relied, as to various questions of
fact material thereto, upon the representations made by ComEd in the Credit Agreement and upon
certificates of officers of ComEd. We have also examined originals, or copies of originals
certified to our satisfaction, of such corporate records of ComEd and such agreements, documents,
certificates and other statements of government officials and other instruments, have examined such
questions of law and have satisfied ourselves as to such matters of fact as we have considered
relevant and necessary as a basis for this letter. We have assumed the genuineness of all
signatures, the legal capacity of all natural persons, the authenticity of all documents submitted
to us as originals and the conformity with the original documents of all documents submitted to us
as certified or photostatic copies or by facsimile or other means of electronic transmission. We
have also assumed that the amount of ComEd’s borrowings outstanding under the Credit

D-2-1

 

Agreement and the Three Year Credit Agreement dated as of October 31, 2003, as amended by the First
Amendment to Credit Agreement dated as of July 16, 2004, among Exelon, ComEd, PECO and Genco, as
Borrowers, various financial institutions, as Lenders, and Bank One, NA, as Administrative Agent,
will not exceed the amount that ComEd is authorized to borrow under any approval referred to in
paragraph 5. With respect to any instrument or agreement executed or to be executed by any party
other than ComEd, we have assumed, to the extent relevant to the opinions set forth herein, that
(i) such other party (if not a natural person) has been duly organized and is validly existing and
in good standing under the laws of its jurisdiction of organization and (ii) such other party has
full right, power and authority to execute, deliver and perform its obligations under each
instrument or agreement to which it is a party and each such instrument or agreement has been duly
authorized (if applicable), executed and delivered by, and is a valid, binding and enforceable
agreement or obligation, as the case may be, of, such other party.

             Based upon the foregoing and subject to the qualifications and limitations stated below, it is
our opinion that:

     1. ComEd is a corporation duly organized, validly existing and in good standing under
the laws of the State of Illinois.

     2. The execution and delivery by ComEd of, and performance by ComEd of its obligations under,
the Credit Agreement and the ComEd Notes are within its corporate powers, have been duly authorized
by all necessary corporate action, and do not (a) violate any provision of the ComEd Charter, the
ComEd By-laws or any law, rule or regulation known to us to be customarily applicable to
transactions of the nature contemplated by the Credit Agreement or the ComEd Notes or (b) to our
knowledge, breach, constitute a default under or otherwise violate any agreement or instrument to
which ComEd is a party or by which it or its properties are bound; and such execution, delivery and
performance do not, to our knowledge, result in or require the creation of any lien, security
interest or encumbrance on or in any of ComEd’s properties.

     3. The Credit Agreement and the ComEd Notes have been duly executed and
delivered by ComEd.

     4. The Credit Agreement and the ComEd Notes are, to the extent that the laws of the State of
Illinois or the federal laws of the United States are applicable to the enforcement of ComEd’s
obligations thereunder, legal, valid and binding obligations of ComEd, enforceable against ComEd in
accordance with their respective terms, except to the extent enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws of
general applicability relating to or affecting the enforceability of creditors’ rights generally,
and by the effect of general principles of equity (regardless of whether enforceability is
considered in a proceeding at law or in equity).

     5. No authorization, approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body of the United States or the State of Illinois is required
for the due execution and delivery by ComEd of, and performance by ComEd of its obligations under,
the Credit Agreement and the ComEd Notes, except for (i) the authorization of the U.S. Securities
and Exchange Commission under the Public

D-2-2

 

Utility Holding Company Act of 1935, as amended, which authorization has been received, and (ii)
the approval of the Illinois Commerce Commission under the Illinois Public Utilities Act, as
amended, which approval has been received.

    6. ComEd is not an “investment company” within the meaning of the Investment Company
Act of 1940, as amended (“Investment Company Act”).

          We confirm to you that, to our knowledge, after inquiry of each lawyer in this firm who
currently has supervisory responsibility for matters handled by this firm on behalf of ComEd,
except as disclosed in ComEd’s Annual Report on Form 10-K for the year ended December 31, 2003 and
its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004, there is no
pending or overtly threatened action or proceeding to which ComEd or any of its Subsidiaries is a
party before any court, governmental agency or arbitrator that relates to the Credit Agreement or
the ComEd Notes or that could reasonably be expected to affect materially and adversely ComEd’s
performance of its obligations under the Credit Agreement or the ComEd Notes.

          The opinion as to enforceability set forth in paragraph 4 above is subject to the
qualification that the enforceability of ComEd’s obligations under the Credit Agreement and the
ComEd Notes is subject to general principles of equity (regardless of whether such enforceability
is considered in a proceeding at law or in equity). Such principles of equity are of general
application and, in applying such principles, a court, among other things, might not allow a
contracting party to exercise remedies in respect of a default deemed immaterial, or might decline
to order an obligor to perform covenants. Such principles would include an expectation that parties
act with reasonableness and in good faith, and might be applied, for example, to provisions which
purport to grant a party with the authority to exercise sole discretion or make conclusive
determinations.
We note further, that, in addition to the application of equitable principles described above,
courts have imposed an obligation on contracting parties to act reasonably and in good faith in the
exercise of their contractual rights and remedies, and may also apply public policy considerations
in limiting the rights of parties seeking to obtain indemnification.

          With respect to our opinion in paragraph 6 above that ComEd is not an “investment company”
within the meaning of the Investment Company Act, we have relied exclusively, as to all factual
matters, on a certificate, dated as of the date of this letter (the “Certificate”), of J. Barry
Mitchell, Vice President and Treasurer of ComEd (the “Executing Officer”). We note that, for
purposes of determining whether a particular entity is an “investment company” within the meaning
of the Investment Company Act, it is necessary to examine the “value” of the assets of such entity
within the meaning of Section 2(a)(41)(A) of the Investment Company Act. Section 2(a)(41)(A)(ii) of
the Investment Company Act provides that the “value” of certain assets held by an entity shall be
the “fair value” of such assets as determined in good faith by such entity’s board of directors (or
similar governing body). Although the Certificate makes certain certifications regarding the value
of the assets of ComEd and certain of its subsidiaries, the Executing Officer did not request the
Board of Directors of ComEd or of any of such subsidiaries to determine the value of any assets
required to be valued at “fair value” pursuant to Section 2(a)(41)(A)(ii), but obtained values from
other sources he deemed to be reliable. We have assumed, however, with your permission, that all
assets of

D-2-3

 

ComEd and its subsidiaries that are required to be valued at “fair value” pursuant to Section
2(a)(41)(A)(ii) of the Investment Company Act by the Board of Directors of ComEd or of the relevant
subsidiary, as the case may be, would have been valued at the same values ascribed to such assets
in the Certificate had the Board of Directors of ComEd or of the relevant subsidiary determined the
“fair value” thereof pursuant to said section.

     We express no opinion as to the enforceability of provisions of the Credit Agreement that
(a) attempt to exculpate other parties from liability for future actions, inactions or
practices,
(b) purport to establish evidentiary standards, (c) purport to confer subject matter
jurisdiction on
any court or fix venue, (d) relate to severability or separability, (f) relate to payment without
set-off or that otherwise purport to make obligations of, or determinations by, any party
unconditional and absolute or (g) constitute agreements to agree. We also express no opinion as to
the enforceability of provisions in the Credit Agreement to the effect that terms may not be waived
or modified except in writing.

          Any opinion or statement herein which is expressed to be “to our knowledge” or is otherwise
qualified by words of like import means that the lawyers in
this firm who have had an involvement in reviewing the Credit Agreement and the ComEd Notes
have no current conscious awareness of any facts or information contrary to such opinion or
statement.

          This letter is limited to the federal laws of the United States of America and the laws of the
State of Illinois. We note that the Credit Agreement and each of the ComEd Notes provides that it
is to be governed by the laws of the Commonwealth of Pennsylvania. We express no opinion as to (i)
Exelon, PECO or Genco or (ii) the enforceability under the laws of the Commonwealth of Pennsylvania
of ComEd’s obligations under the Credit Agreement or the ComEd Notes. With respect to these
matters, we understand you are relying upon the opinion of Ballard Spahr Andrews & Ingersoll LLP,
counsel to Exelon, PECO and Genco and Pennsylvania counsel to ComEd.

          This letter is being delivered solely for the benefit of the persons to whom it is addressed;
accordingly, it may not be relied upon by any other person or otherwise circulated or utilized for
any purpose without our written consent, except that Ballard Spahr Andrews & Ingersoll LLP may rely
upon the opinions expressed in paragraphs 1 through 3 (inclusive) in rendering their opinion to you
of even date herewith. This letter may not be quoted or filed with any governmental authority or
other regulatory agency (except to the extent required by law). We assume no obligation to update
or supplement the opinions expressed herein to reflect any facts or circumstances which may
hereafter come to our attention with respect to such opinions, including any changes in applicable
law which may hereafter occur.

Very truly yours,

SIDLEY AUSTIN BROWN & WOOD LLP

D-2-4

 

EXHIBIT E

FORM OF ANNUAL AND QUARTERLY COMPLIANCE CERTIFICATE

                                        , 20____

          Pursuant to the Five Year Credit Agreement, dated as of July 16, 2004, among Exelon
Corporation (“Exelon”), PECO Energy Company (“PECO”), Exelon Generation Company, LLC (“Genco”),
various financial institutions and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended,
modified or supplemented from time to time, the “Credit Agreement”), the undersigned, being
                                         of [Exelon] [PECO] [Genco] (the “Borrower”), hereby certifies on behalf of
the Borrower as follows:

          1. Delivered herewith are the financial statements prepared pursuant to Section
5.01(b)[(ii)/(iii)] of the Credit Agreement for the fiscal                      ended                     , 20___. All
such financial statements comply with the applicable
requirements of the Credit Agreement.

          2. Schedule I hereto sets forth in reasonable detail the information and calculations
necessary to establish the Borrower’s compliance with the provisions of Section 5.02(c) of the
Credit Agreement as of the end of the fiscal period referred to in paragraph 1 above.

          3. (Check one and only one:)

          ___ No Event of Default or Unmatured Event of Default has occurred and is continuing.

          ___ An Event of Default or Unmatured Event of Default has occurred and is continuing, and the
document(s) attached hereto as Schedule II specify in detail the nature and period of existence of
such Event of Default or Unmatured Event of Default as well as any and all actions with respect
thereto taken or contemplated to be taken by the Borrower.

          4. The undersigned has personally reviewed the Credit Agreement, and this certificate was
based on an examination made by or under the supervision of the undersigned sufficient to assure
that this certificate is accurate.

E-1

 

          5. Capitalized terms used in this certificate and not otherwise defined shall have the
meanings given in the Credit Agreement.

[EXELON CORPORATION]

[PECO ENERGY COMPANY]

[COMMONWEALTH EDISON COMPANY]

[EXELON GENERATION COMPANY, LLC]

By                                                             

Name:                                                             

Title:                                                             

Date:                                                            

E-2exv10w4

 

Exhibit 10.4

THIRD AMENDMENT TO CREDIT AGREEMENT

     THIS THIRD AMENDMENT (this “Amendment”), dated as of February 22, 2006, amends the Three Year
Credit Agreement dated as of October 31, 2003 (as previously amended, the “Credit Agreement”) among
EXELON CORPORATION, COMMONWEALTH EDISON COMPANY, PECO ENERGY COMPANY, EXELON GENERATION COMPANY,
LLC (each, an “Initial Borrower” and collectively, the “Initial Borrowers”), various financial
institutions and JPMORGAN CHASE BANK, N.A. (successor by merger to Bank One, NA), as administrative
agent (in such capacity, the “Administrative Agent”). Capitalized terms used but not defined herein
have the respective meanings given to them in the Credit Agreement.

     WHEREAS, Exelon Corporation, on behalf of itself and the other Initial Borrowers, has requested
certain amendments to the Credit Agreement, including the deletion of ComEd as a Borrower
thereunder;

     NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the
receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows:

     SECTION
1 AMENDMENTS. Upon the effectiveness of this Amendment pursuant to Section
2 below, the Credit Agreement shall be amended to read in its entirety as set forth on the
attached Annex I.

     SECTION
2 CONDITIONS PRECEDENT. This Amendment shall become effective when the
Administrative Agent has received (a) counterpart signature pages to this Amendment (by facsimile
or otherwise) signed by the Initial Borrowers and the Majority Lenders; and (b) payment in full by
ComEd of all of its obligations under the Credit Agreement, other than contingent indemnification
obligations arising under provisions of the Credit Agreement that by their terms survive
termination thereof (any such obligations, “Surviving Obligations”).

     SECTION 3 REPRESENTATIONS AND WARRANTIES.

     3.1
Representations and Warranties of ComEd. ComEd represents and warrants to the
Administrative Agent and the Lenders that (a) no Event of Default or Unmatured Event of Default
exists with respect to ComEd, (b) the execution and delivery by ComEd of this Amendment (i) are
within the powers of ComEd, (ii) have been duly authorized by all necessary action on the part of
ComEd, (iii) have received all necessary governmental approval and (iv) do not and will not
contravene or conflict with any provision of law or of the organizational documents of ComEd; and
(c) this Amendment is the legal, valid and binding obligation of ComEd, enforceable against ComEd
in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or
other similar laws of general application affecting the enforcement of creditor’s rights or by
general principles of equity limiting the
availability of equitable remedies.

     3.2
Representations and Warranties of Continuing Borrowers. Each of Exelon, PECO and
Genco (each, a “Continuing Borrower” and collectively, the “Continuing Borrowers”)
represents and warrants to the Administrative Agent and the Lenders that (a) each representation
and warranty set forth in Article IV of the Credit Agreement is true and correct as if made on the

 

 

date hereof; (b) the execution and delivery by such Continuing Borrower of this Amendment and the
performance by such Continuing Borrower of its obligations under the Credit Agreement as amended
hereby (as so amended, the “Amended Credit Agreement”) (i) are within the powers of such
Continuing Borrower, (ii) have been duly authorized by all necessary action on the part of such
Continuing Borrower, (iii) have received all necessary governmental approval and (iv) do not and
will not contravene or conflict with any provision of law or of the organizational documents of
such Continuing Borrower; and (c) this Amendment and the Amended Credit Agreement are legal, valid
and binding obligations of such Continuing Borrower, enforceable against such Continuing Borrower
in accordance with their respective terms, except as enforceability may be limited by bankruptcy,
insolvency or other similar laws of general application affecting the enforcement of creditor’s
rights or by general principles of equity limiting the availability of equitable remedies.

     SECTION
4 MISCELLANEOUS.

     4.1 Continuing Effectiveness, etc. Except as expressly set forth herein, the Credit
Agreement shall remain in full force and effect and is ratified, approved and confirmed in all
respects.

     4.2 Severability. Any provision of this Amendment which is prohibited
or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Amendment or affecting the validity or enforceability of such
provision in any other jurisdiction.

     4.3
Headings. The various headings of this Amendment are inserted for convenience only
and shall not affect the meaning or interpretation of this Amendment.

     4.4
Execution in Counterparts. This Amendment may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

     4.5 Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA.

     4.6
Successors and Assigns. This Amendment shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns.

     4.7
Deletion of ComEd as a Borrower. ComEd acknowledges that it shall not be a party to
the Amended Credit Agreement, shall have no right to request or obtain Credit Extensions thereunder
and shall have no other rights or obligations thereunder
or in connection therewith (other than Surviving Obligations).

[Signature Pages Follow]

2

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers as of the date first above written.

	 	 	 	 	 	 	 
	 	 	EXELON CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Miller
 

Name: Thomas R. Miller
	 	 
	 

	 	 	 	Title: Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	COMMONWEALTH EDISON COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Miller
 

Name: Thomas R. Miller
	 	 
	 

	 	 	 	Title: Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	PECO ENERGY COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Miller
 

Name: Thomas R. Miller
	 	 
	 

	 	 	 	Title: Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	EXELON GENERATION COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Miller
 

Name: Thomas R. Miller
	 	 
	 

	 	 	 	Title: Assistant Treasurer	 	 

Third Amendment to
Three Year Credit Agreement

 

 

THE LENDERS:

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as	 	 
	 	 	Administrative Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. DeForge
 

	 	 
	 	 	Name: Michael J. DeForge	 	 
	 	 	Title: Vice President	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BARCLAYS BANK PLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David Barton
 

	 	 
	 	 	Name: David Barton	 	 
	 	 	Title: Associate Director	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CITIBANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stuart J. Murray
 

	 	 
	 	 	Name: STUART J. MURRAY	 	 
	 	 	Title: Director	 	 
	 

	 	 	 	388 Greenwich Street/21st FL./NYC

(212) 816-8597	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kevin R. Wagley
 

	 	 
	 	 	Name: Kevin R. Wagley	 	 
	 	 	Title: Senior Vice President	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH BANK USA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Louis Alder
 

	 	 
	 	 	Name: Louis Alder	 	 
	 	 	Title: Director	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thane Rattew
 

	 	 
	 	 	Name: Thane Rattew	 	 
	 	 	Title: Managing Director	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE, Cayman Islands Branch	 	 
	 	 	(formerly known as CREDIT SUISSE FIRST	 	 
	 	 	BOSTON, Cayman Islands Branch)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sarah Wu
 

	 	 
	 	 	Name: Sarah Wu	 	 
	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Denise Alvarez
 

	 	 
	 	 	Name: Denise Alvarez	 	 
	 	 	Title: Associate	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Mack
 

	 	 
	 	 	Name: Lawrence A. Mack	 	 
	 	 	Title: Senior Vice President	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	LEHMAN BROTHERS BANK, FSB, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Janine M. Shugan
 

	 	 
	 	 	Name: Janine M. Shugan	 	 
	 	 	Title: Authorized
Signatory	 	 

Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	UBS LOAN FINANCE LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard L. Tavrow
 

	 	 
	 	 	Name: Richard L. Tavrow	 	 
	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Irja R. Otsa
 

	 	 
	 	 	Name: Irja R. Otsa	 	 
	 	 	Title: Associate Director	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark A. Renaud
 

	 	 
	 	 	Name: MARK A. RENAUD	 	 
	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	[ILLEGIBLE]
 

	 	 
	 	 	Name: [ILLEGIBLE]	 	 
	 	 	Title: Director	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard K. Fronapfel, Jr.
 

	 	 
	 	 	Name: Richard K. Fronapfel, Jr.	 	 
	 	 	Title: Vice President	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MELLON BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark W. Rogers
 

	 	 
	 	 	Name: Mark W. Rogers	 	 
	 	 	Title: Vice President	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ABN AMRO BANK, N.V.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ R. Scott Donaldson
 

	 	 
	 	 	Name: R. Scott Donaldson	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Todd Vaubel
 

	 	 
	 	 	Name: Todd Vaubel	 	 
	 	 	Title: Assistant Vice President	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	DRESDNER BANK AG, NEW YORK AND	 	 
	 	 	GRAND CAYMAN BRANCHES	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas R. Brady
 

	 	 
	 	 	Name: Thomas R. Brady	 	 
	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	DRESDNER BANK AG, NEW YORK AND	 	 
	 	 	GRAND CAYMAN BRANCHES	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian Smith
 

	 	 
	 	 	Name: Brian Smith	 	 
	 	 	Title: Managing Director	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE NORTHERN TRUST COMPANY, as a	 	 
	 	 	Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Karen E. Dahl
 

	 	 
	 	 	Name: KAREN E. DAHL	 	 
	 	 	Title: VICE PRESIDENT	 	 

Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ R. Michael Newton
 

	 	 
	 	 	Name: R. Michael Newton	 	 
	 	 	Title: Vice President	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles W. Reed
 

	 	 
	 	 	Name: Charles W. Reed	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter R. Martinets
 

	 	 
	 	 	Name: Peter R. Martinets	 	 
	 	 	Title: Vice President	 	 

Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Raymond Ventura
 

	 	 
	 	 	Name: Raymond Ventura	 	 
	 	 	Title: Deputy General Manager	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL	 	 
	 	 	ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 
	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MORGAN STANLEY BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 
	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 
	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BANK HAPOALIM	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 
	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

Third Amendment to
 Three Year Credit Agreement

 

 

ANNEX I

COPY OF CREDIT AGREEMENT AS AMENDED

[ATTACHED]

Annex I-1

 

 

COMPOSITE COPY

THREE YEAR CREDIT AGREEMENT

dated as of October 31, 2003

among

EXELON CORPORATION,

PECO ENERGY COMPANY

and

EXELON GENERATION COMPANY, LLC

as Borrowers

VARIOUS FINANCIAL INSTITUTIONS

as Lenders

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

CITIBANK, N.A.,

WACHOVIA BANK, NATIONAL ASSOCIATION

and

DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES

as Co-Documentation Agents

and

BARCLAYS BANK PLC

as Syndication Agent

BANC ONE CAPITAL MARKETS, INC.

and

BARCLAYS CAPITAL

Co-Lead Arrangers

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	ARTICLE I     DEFINITIONS AND ACCOUNTING TERMS	 	 	1	 
	 	 	SECTION 1.01	 	Certain Defined Terms	 	 	1	 
	 	 	SECTION 1.02	 	Other Interpretive Provisions	 	 	13	 
	 	 	SECTION 1.03	 	Accounting Principles	 	 	14	 
	ARTICLE II     AMOUNTS AND TERMS OF THE COMMITMENTS	 	 	14	 
	 	 	SECTION 2.01	 	Commitments	 	 	14	 
	 	 	SECTION 2.02	 	Procedures for Advances; Limitations on Borrowings	 	 	15	 
	 	 	SECTION 2.03	 	Facility and Utilization Fees	 	 	16	 
	 	 	SECTION 2.04	 	Reduction of Commitment Amounts; Adjustment of
Sublimits	 	 	16	 
	 	 	SECTION 2.05	 	Repayment of Advances	 	 	17	 
	 	 	SECTION 2.06	 	Interest on Advances	 	 	17	 
	 	 	SECTION 2.07	 	Additional Interest on Eurodollar Advances	 	 	17	 
	 	 	SECTION 2.08	 	Interest Rate Determination	 	 	18	 
	 	 	SECTION 2.09	 	Continuation and Conversion of Advances	 	 	18	 
	 	 	SECTION 2.10	 	Prepayments	 	 	19	 
	 	 	SECTION 2.1l	 	Increased Costs	 	 	19	 
	 	 	SECTION 2.12	 	Illegality	 	 	20	 
	 	 	SECTION 2.13	 	Payments and Computations	 	 	21	 
	 	 	SECTION 2.14	 	Taxes	 	 	22	 
	 	 	SECTION 2.15	 	Sharing of Payments, Etc	 	 	24	 
	 	 	SECTION 2.16	 	Facility LCs	 	 	25	 
	ARTICLE III     CONDITIONS TO CREDIT EXTENSIONS	 	 	29	 
	 	 	SECTION 3.01	 	Conditions Precedent to Initial Credit Extensions	 	 	29	 
	 	 	SECTION 3.02	 	Conditions Precedent to All Credit Extensions	 	 	30	 
	ARTICLE IV     REPRESENTATIONS AND WARRANTIES	 	 	30	 
	 	 	SECTION 4.01	 	Representations and Warranties of the Borrowers	 	 	31	 
	ARTICLE V     COVENANTS OF THE BORROWERS	 	 	33	 
	 	 	SECTION 5.01	 	Affirmative Covenants	 	 	33	 
	 	 	SECTION 5.02	 	Negative Covenants	 	 	37	 
	ARTICLE VI     EVENTS OF DEFAULT	 	 	40	 
	 	 	SECTION 6.01	 	Events of Default	 	 	40	 
	ARTICLE VII     THE AGENTS	 	 	42	 
	 	 	SECTION 7.01	 	Authorization and Action	 	 	42	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 	 	SECTION 7.02	 	Agents’ Reliance, Etc	 	 	43	 
	 	 	SECTION 7.03	 	Agents and Affiliates	 	 	43	 
	 	 	SECTION 7.04	 	Lender Credit Decision	 	 	43	 
	 	 	SECTION 7.05	 	Indemnification	 	 	44	 
	 	 	SECTION 7.06	 	Successor Administrative Agent	 	 	44	 
	 	 	SECTION 7.07	 	Co-Documentation Agents, Syndication Agent and Co-
Lead Arranger	 	 	44	 
	ARTICLE VIII     MISCELLANEOUS	 	 	45	 
	 	 	SECTION 8.01	 	Amendments, Etc	 	 	45	 
	 	 	SECTION 8.02	 	Notices, Etc	 	 	45	 
	 	 	SECTION 8.03	 	No Waiver; Remedies	 	 	45	 
	 	 	SECTION 8.04	 	Costs and Expenses; Indemnification	 	 	46	 
	 	 	SECTION 8.05	 	Right of Set-off	 	 	47	 
	 	 	SECTION 8.06	 	Binding Effect	 	 	47	 
	 	 	SECTION 8.07	 	Assignments and Participations	 	 	47	 
	 	 	SECTION 8.08	 	Governing Law	 	 	51	 
	 	 	SECTION 8.09	 	Consent to Jurisdiction; Certain Waivers	 	 	51	 
	 	 	SECTION 8.10	 	Execution in Counterparts; Integration	 	 	51	 
	 	 	SECTION 8.11	 	Liability Several	 	 	51	 
	 	 	SECTION 8.12	 	USA PATRIOT ACT NOTIFICATION	 	 	51	 
	 	 	SECTION 8.13	 	Termination of Existing Agreement	 	 	52	 
	Schedule I	 	Pricing Schedule	 	 	 	 
	Schedule II	 	Commitments	 	 	 	 
	Schedule III	 	Existing Letters of Credit	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Exhibit A	 	Form of Note	 	 	 	 
	Exhibit B	 	Form of Notice of Borrowing	 	 	 	 
	Exhibit C	 	Form of Assignment and Acceptance	 	 	 	 
	Exhibit D	 	Form of Opinion of Special Counsel for Exelon and PECO	 	 	 	 
	Exhibit E	 	Form of Annual and Quarterly Compliance Certificate	 	 	 	 

-ii-

 

THREE YEAR CREDIT AGREEMENT

dated as of October 31, 2003

     EXELON CORPORATION, PECO ENERGY COMPANY, EXELON GENERATION COMPANY, LLC, the banks listed on
the signature pages hereof, JPMORGAN CHASE BANK, N.A., as Administrative Agent, CITIBANK, N.A.,
WACHOVIA BANK, NATIONAL ASSOCIATION and DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES, as
Co-Documentation Agents, and BARCLAYS BANK PLC, as Syndication Agent, 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):

     “Adjusted Funds From Operations” means, for any Borrower for any period, such
Borrower’s Net Cash Flows From Operating Activities for such period minus such Borrower’s
Transitional Funding Instrument Revenue for such period plus such Borrower’s Net Interest
Expense for such period minus, in the case of Exelon, the portion (but, not less than zero)
of Exelon’s Net Cash Flows From Operating Activities for such period attributable to ComEd Entities
and Energy Holdings Entities.

     “Administrative Agent” means JPMCB 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.

     “Administrative Questionnaire” means an administrative questionnaire, substantially
in the form supplied by the Administrative Agent, completed by a Lender and furnished to the
Administrative Agent in connection with this Agreement.

     “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 Syndication
Agent; 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 I.

     “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.

     “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:

     (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, 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 Citibank, N.A., Wachovia Bank, National
Association and Dresdner Bank AG, New York and Grand Cayman Branches in its capacity as a
co-documentation agent hereunder.

     “Co-Lead
Arranger” means each of Banc One Capital Markets and Barclays Capital in its
capacity as a Co-Lead Arranger.

     “ComEd” means Commonwealth Edison Company, an Illinois corporation, or any successor thereof.

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     “ComEd Debt” means Debt of any ComEd Entity for which none of the Borrowers nor
any of their Subsidiaries (other than another ComEd Entity) has any liability, contingent or
otherwise. ‘

     “ComEd Entity” means ComEd and each of its Subsidiaries.

     “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 Schedule II attached hereto 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)
October 31, 2006 or (ii) the date of termination of the Commitments to such Borrower pursuant to
Section 2.04 or 6.01.

     “Commodity Trading Obligations” mean, with respect to any Person, the obligations of
such Person under (i) any commodity swap agreement, commodity future agreement, commodity option
agreement, commodity cap agreement, commodity floor agreement, commodity collar agreement,
commodity hedge agreement, commodity forward contract or derivative transaction and any put, call
or other agreement, arrangement or transaction, including natural gas, power and emissions forward
contracts, or any combination of any such arrangements, agreements and/or transactions, employed
in the ordinary course of such Person’s business, including any such Person’s energy marketing,
trading and asset optimization business, or (ii) any commodity swap agreement, commodity future
agreement, commodity option agreement, commodity hedge agreement, and any put, call or other
agreement or arrangement, or combination thereof (including an agreement or arrangement to hedge
foreign exchange risks) in respect of commodities entered into by such Person pursuant to asset
optimization and risk management policies and procedures adopted in good faith by the Board of
Directors of such Person. The term “commodities” shall include electric energy and/or capacity,
coal, petroleum, natural gas, emissions allowances, weather derivatives and related products and
by-products and ancillary services.

     “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.

     “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

3

 

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” in its Administrative Questionnaire 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; (iv) the central bank of any country that is a member of the OECD; (v) any Lender; or
(v) any Affiliate of a Lender; provided that, unless otherwise agreed by Exelon and the
Administrative Agent in their sole discretion, (A) any 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), (iv) or (v) 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 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.

     “Energy Holdings” means PSEG Energy Holdings L.L.C., a New Jersey limited liability
company.

4

 

     “Energy Holdings Debt” means Debt of any Energy Holdings Entity for which none of the
Borrowers nor any of their Subsidiaries (other than another Energy Holdings Entity) has any
liability, contingent or otherwise.

     “Energy Holdings Entity” means Energy Holdings and each of its Subsidiaries.

     “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” in its Administrative Questionnaire 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, the applicable British Bankers’ Association LIBOR rate for deposits in U.S.
dollars having a maturity equal to such Interest Period, as reported by any generally recognized
financial information service as of 11:00 A.M. (London time) two Business Days prior to the first
day of such Interest Period; provided that if no such British Bankers’ Association LIBOR
rate is available to the Administrative Agent, the Eurodollar Rate for such Interest Period shall
instead be the rate determined by the Administrative Agent to be the rate at which JPMCB or one of
its Affiliate banks offers to place deposits in U.S. dollars with first-class banks in the London
interbank market at approximately 11:00 A.M. (London time) two Business Days prior to the first
day of such Interest Period, in the approximate amount of JPMCB’s relevant Eurodollar Rate Advance
and having a maturity equal to such Interest Period.

     “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 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.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended and modified from time
to time.

5

 

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

     “Exelon Sublimit” means $100,000,000, subject to adjustment as provided in Section
2.04(c).

     “Existing Agreement” means the Credit Agreement dated as of November 22, 2002 among
the Borrowers, various financial institutions and Bank One, NA, as Administrative Agent, as
amended prior to the Closing Date.

     “Existing Letter of Credit” means each letter of credit listed on Schedule III.

     “Facility Fee Rate” — see Schedule I.

     “Facility LC” means any letter of credit issued pursuant to Section 2.16 and any
Existing Letter of Credit.

     “Facility LC Application” — see 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.

     “GAAP” — see Section 1.03.

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

     “Genco Sublimit” means $150,000,000, subject to adjustment as provided in Section
2.04(c).

     “Granting Bank” — see Section 8.07(h).

     “Hedging Obligations” mean, with respect to any Person, the obligations of such
Person under any interest rate or currency swap agreement, interest rate or currency future
agreement, interest rate collar agreement, interest rate or currency hedge agreement, and any put,
call or other agreement or arrangement designed to protect such Person against fluctuations in
interest rates or currency exchange rates.

     “Interest Coverage Ratio” means, with respect to any Borrower for any period of. four
consecutive fiscal quarters, the ratio of such Borrower’s Adjusted Funds From Operations for such
period to such Borrower’s Net Interest Expense for such period.

6

 

     “Interest Expense” means, for any Borrower for any period, “interest expense” as shown on a
consolidated statement of income of such Borrower for such period prepared in accordance with
GAAP.

     “Interest Expense to Affiliates” means, for any period, in the case of Exelon and
PECO, “Interest Expense to Affiliates” as shown on a consolidated statement of income of Exelon or
PECO, as applicable, for such period.

     “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 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
Maturity Date for such Borrower;

     (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.

     “JPMCB” means JPMorgan Chase Bank, N.A., a national banking association.

     “LC Fee Rate” — see Schedule I.

     “LC Issuer” means JPMCB 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” — see Section 2.16.5.

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     “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 $400,000,000.

     “Lien” means any lien (statutory or other), mortgage, pledge, security interest or other
charge or encumbrance, or any other type of preferential arrangement (including the interest of a
vendor or lessor under any conditional sale, capitalized lease or other title retention
agreement).

     “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 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 (other than
ComEd Entities and Energy Holdings Entities), taken as a whole, provided that, except as
otherwise expressly provided herein, neither (a) changes or effects relating to the
investment of such Borrower or any of its Subsidiaries in ComEd Entities or Energy Holdings
Entities nor (b) the assertion against such Borrower or any of its Subsidiaries of liability for
any obligation arising under ERISA for which such Borrower or any of its Subsidiaries bore joint
and several liability with any ComEd Entity, or the payment by such Borrower or any of its
Subsidiaries of any such obligation, shall be considered in determining whether a Material Adverse
Change or Material Adverse Effect has occurred); 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 PECO, Genco and, on and
after the PSEG Merger Date, PSE&G, and any holding company for any of the foregoing.

     “Maturity Date” means, with respect to any Borrower, the earlier of (i) October 31, 2006 or
(ii) the date on which all obligations of such Borrower become due and payable (pursuant to
Section 6.01 or otherwise).

     “Modify” and “Modification” — see 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”).

8

 

     “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.

     “Net Cash Flows From Operating Activities” means, for any Borrower for any period,
“Net Cash Flows provided by Operating Activities” as shown on a consolidated statement of cash
flows of such Borrower for such period prepared in accordance with GAAP, excluding any
“working capital changes” (as shown on such statement of cash flows) taken into account in
determining such Net Cash Flows provided by Operating Activities.

     “Net Interest Expense” means, for any Borrower for any period, the total of (a) such
Borrower’s Interest Expense for such period minus (b) to the extent that Interest Expense
to Affiliates is included in such Interest Expense and relates to (i) interest payments on debt
obligations that are subordinated to the obligations of such Borrower under this Agreement, (ii)
such Borrower’s Interest Expense to Affiliates for such period or (iii) such Borrower’s or such
Borrower’s Subsidiaries’ Transitional Funding Instrument Interest for such period minus
(c) in the case of Exelon, interest on ComEd Debt and Energy Holdings Debt for such period.

     “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:

     1. 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;

     2. 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
if the extent of the recourse to the Debtor is limited solely to the amount of
any
recoveries made on any such enforcement; and

     3. 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, 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).

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     “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 $250,000,000, subject to adjustment as provided in
Section 2.04(c).

     “Permitted Obligations” mean, with respect to Genco or any of its Subsidiaries,
(1) Hedging Obligations arising in the ordinary course of business and in accordance with such
Person’s established risk management policies that are designed to protect such Person
against, among other things, fluctuations in interest rates or currency exchange rates and
which in the case of agreements relating to interest rates shall have a notional amount no
greater than the payments due with respect to the Obligations being hedged thereby and (2)
Commodity Trading Obligations.

     “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.

     “Power” means PSEG Power LLC, a Delaware limited liability company.

     “Power Merger” means the proposed merger of Power into Genco subsequent to the PSEG
Merger.

     “Power Merger Date” means the date that the Power Merger is consummated.

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     “Prime Rate” means a rate per annum equal to the prime rate of interest announced by JPMCB or
by its parent (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, (a) each Utility Subsidiary
of such Borrower and (b) each other Subsidiary of such Borrower (i) the consolidated assets of
which, as of the date of any determination thereof, constitute at least 10% of the consolidated
assets of such Borrower or (ii) the consolidated earnings before taxes of which constitute at least
10% of the consolidated earnings before taxes of such Borrower for the most recently completed
fiscal year; provided that (x) no ComEd Entity shall be considered a Principal Subsidiary
of Exelon; and (y) on or after the PSEG Merger Date, no Energy Holdings Entity shall be considered
a Principal Subsidiary of Exelon.

     “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).

     “PSE&G” means Public Service Electric and Gas Company, a New Jersey corporation.

     “PSEG” means Public Service Enterprise Group Incorporated, a New Jersey corporation.

     “PSEG Merger” means the merger of PSEG into Exelon substantially as contemplated by the
Agreement and Plan of Merger dated as of December 20, 2004 between PSEG and Exelon.

     “PSEG Merger Date” means the date that the PSEG Merger is consummated.

     “PSE&G Mortgage” means the Mortgage Indenture dated August 1, 1924, between PSE&G and
Wachovia Bank, National Association (formerly Fidelity Union Trust Company), as trustee, 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 scope of Liens permitted under the PSE&G Mortgage as constituted on the date of this
Agreement.

     “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

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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.

     “SPC” — see Section 8.07(h).

     “Special Purpose Subsidiary” means a direct or indirect wholly owned corporate
Subsidiary of PECO or, on and after the PSEG Merger Date, PSE&G, substantially all of the
assets of which are “intangible transition property” (as defined in 66 Pa. Cons. Stat. Ann.
ss.2812(g), as amended, or any successor provision of similar import) or “bondable transition
property” (as defined in N.J.S.A. 48:3-51, as amended, 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 PECO Sublimit or the Genco Sublimit.

     “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).

     “Syndication Agent” means Barclays Bank PLC in its capacity as a syndication
agent hereunder.

     “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 PECO, are “transition bonds” (as defined in 66 Pa. Cons.
Stat. Ann. ss.2812(g), as amended), representing a securitization of “intangible transition
property” (as defined in the foregoing

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statute), (ii) on and after the PSEG Merger Date, in the case of PSE&G are “transition bonds”
(as defined in N.J.S.A. 48:3-51, as amended), representing a securitization of “bondable transition
property” (as defined in the foregoing statute) and (iii) in the case of each of PECO and, after
the PSEG Merger Date, PSE&G, (A) are issued pursuant to a financing order of a public utilities
commission at the request of an electric utility pursuant to state legislation which is enacted to
facilitate the recovery of certain specified costs by electric utilities through non-bypassable
cent per kilowatt hour charges and/or demand charges authorized pursuant to such order to be
applied and invoiced to customers of such utility and (B) are secured by or otherwise payable
solely from such non-bypassable charges.

     “Transitional Funding Instrument Interest” means, for any Borrower for any period, the portion
of such Borrower’s Interest Expense for such period which was payable in respect of Transitional
Funding Instruments.

     “Transitional Funding Instrument Revenue” means, for any Borrower for any period, the portion
of such Borrower’s (or, in the case of Exelon, its Subsidiaries’) consolidated revenue for such
period attributable to charges invoiced to customers in respect of Transitional Funding
Instruments.

     “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
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, become an Event of Default.

     “Utility Subsidiary” means, with respect to a Borrower, each Subsidiary of such Borrower that
is engaged principally in the transmission, or distribution of electricity or gas and is subject to
rate regulation as a public utility by federal or state regulatory
authorities; provided that, (i)
no ComEd Entity shall be considered a Utility Subsidiary of Exelon and (ii) on or after the PSEG
Merger Date, no Energy Holdings Entity shall be considered a Utility Subsidiary of Exelon.

     “Utilization
Fee Rate” — see Schedule I.

     SECTION 1.02 Other Interpretive Provisions. In this Agreement, (a) 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”; (b) unless otherwise
indicated, any reference to an Article, Section, Exhibit or Schedule means an Article or Section
hereof or an Exhibit or Schedule hereto; and (c) the term “including” means “including without
limitation”.

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     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, 2004 and for the fiscal year then ended, as such principles may be revised as a result of
changes in GAAP implemented by a Borrower subsequent to such date. 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.

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 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 PECO shall not at any time exceed the PECO Sublimit; (v) the Outstanding Credit
Extensions to Genco shall not at any time exceed the Genco Sublimit; and (vi) 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

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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, 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 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 (or, in the case of a borrowing of Base Rate Advances to be made on the
same Business Day as the Administrative Agent’s receipt of the relevant Notice of Borrowing, prior
to 10:30 A.M., Chicago time, on such Business Day) 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 Section 2.02(a) and the 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.

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          (e) Each Borrowing of Base Rate Advances shall at all times be in an aggregate amount of
$5,000,000 or a higher integral multiple of $1,000,000; and each Borrowing of Eurodollar Rate
Advances shall at all times be in an aggregate amount of $10,000,000 or a higher integral multiple
of $1,000,000. 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 for such Borrower, 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 aggregate 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).

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          (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 Borrower’s Sublimit shall exceed $250,000,000; (C) the Outstanding Credit
Extensions to Exelon shall not exceed the Exelon Sublimit; (D) the Outstanding Credit Extensions to
Genco shall not exceed the Genco Sublimit and (E) 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 Maturity 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.

     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, 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

17

 

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) 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).

          (b) 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.

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     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 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, 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

19

 

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 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, 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

20

 

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 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 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.

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          (d) Whenever any payment hereunder 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.

          (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

22

 

extent arising from the execution, delivery or registration of this Agreement or any Note
(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.

          (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 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 any Note. 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

23

 

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 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 the
termination of this Agreement; 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, 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

24

 

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 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 and to renew, extend, increase 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) one year after
the date of issuance, or of extension or renewal, thereof or (b) the scheduled Commitment
Termination Date. By their execution of this Agreement, the parties hereto agree that on the
Closing Date (without any further action by any Person), each Existing Letter of Credit shall be
deemed to have been issued under this Agreement and the rights and obligations of the issuer and
the account party thereunder shall be subject to the terms hereof.

     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 (or, in this case of the Existing Letters of
Credit, on the Closing Date), 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; provided that
the LC Issuer shall not issue any Facility LC if the LC Issuer shall have
received written notice (which has not been rescinded) from the

25

 

Administrative Agent or any Lender that any applicable condition precedent to the issuance or
modification of such Facility LC has not been satisfied and, in fact, such condition precedent is
not satisfied at the requested time of issuance), 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 arrears on the last day of each March, June,
September and December and on the Maturity 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, 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, 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.

26

 

     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 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.

27

 

     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 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 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

28

 

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.

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 that all “Commitments”
under and as defined in the Existing Agreement have been (or concurrently with the initial Advances
will be) terminated 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 any Note) in sufficient
copies to provide one for each Lender:

     (i) Notes issued by each Borrower in favor of each Lender that has requested a Note to
evidence its Advances;

     (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 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 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

29

 

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.

     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; provided that this Section
3.02(A) shall not apply to the representations and warranties set forth in Sections
4.01(e)(i)(B), 4.01(e)(ii)(B) and 4.01(e)(iii)(B) and the first sentence of
Section 4.01(f) with respect to a Borrowing if the proceeds of such Borrowing will be used
exclusively to repay such Borrower’s commercial paper (and, in the event of any such Borrowing, the
Administrative Agent may require the applicable Borrower to deliver information sufficient to
disburse the proceeds of such Borrowing directly to the holders of such commercial paper or a
paying agent therefor); 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.

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 or limited liability company 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 any Note
issued by such Borrower are within such Borrower’s powers, have

30

 

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 any applicable Note, except an appropriate order
or orders of (i) the Securities and Exchange Commission under the Public Utility Holding Company
Act of 1935, if applicable, (ii) the Federal Energy Regulatory Commission, if applicable, and (iii)
in the case of PECO, the Pennsylvania Public Utility Commission under the Pennsylvania Public
Utility Code, which order or orders have been duly obtained and are (x) in full force and effect
and (y) sufficient for the purposes hereof.

          (d) This Agreement is, and each applicable Note when delivered hereunder will be, legal, valid
and binding obligations of such Borrower, 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, (A) the consolidated balance sheet of PECO and its Subsidiaries
as at December 31, 2004, 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, 2005, and the related unaudited statements of income for the ninemonth 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, 2005, 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 (B) since
December 31, 2004 there has been no Material Adverse Change with respect to PECO.

     (ii) In the case of Exelon, (A) the consolidated balance sheet of Exelon and its Subsidiaries
as at December 31, 2004 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, 2005
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, 2005, 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 (B) since

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December 31, 2004 there has been no Material Adverse Change with respect to Exelon.

     (iii) In the case of Genco, (A) the consolidated balance sheet of Genco and its Subsidiaries
as at December 31, 2004 and the related consolidated statements of income, retained earnings and
cash flows of Genco for the fiscal year then ended, certified by Pricewaterhouse Coopers LLP, and
the unaudited consolidated balance sheet of Genco and its Subsidiaries as of September 30, 2005 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, 2005, to year-end
adjustments) the consolidated financial condition of Genco and its Subsidiaries as at such dates
and the consolidated results of the operations of Genco and its Subsidiaries for the periods ended
on such dates in accordance with GAAP; and (B) since December 31, 2004 there has been no Material
Adverse Change with respect to Genco.

          (f) Except as disclosed in such Borrower’s Annual, Quarterly or Current Reports, each as filed
with the Securities and Exchange Commission and delivered to the Lenders prior to the date of
execution and delivery of this Agreement and, in the case of Exelon, on and after the PSEG Merger
Date, as disclosed in any Annual, Quarterly or Current Report of PSEG or any Subsidiary thereof
filed with the Securities and Exchange Commission prior to October 25, 2005, and, in the case of
Genco, on and after the Power Merger Date, as disclosed in any Annual, Quarterly or Current Report
of Power filed with the Securities and Exchange Commission prior to October 25, 2005, 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.

          (g) No proceeds of any Advance 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.

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          (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 (excluding any termination arising out of the institution by or
against any ComEd Entity of any bankruptcy, insolvency or similar proceeding so long as such
termination will not constitute an Event of Default or Unmatured Event of Default under Section
6.01(g))., and there is no “accumulated funding deficiency” (as defined in Section 412 of the
Code or Section 302 of ERISA) 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
(other than to make contributions, pay annual PBGC premiums or pay out benefits in the ordinary
course of business), fine or penalty (excluding any condition, event or transaction arising out of
the institution by or against any ComEd Entity of any bankruptcy, insolvency or similar proceeding
so long as such condition, event or transaction does not constitute an Event of Default or
Unmatured Event of Default under Section 6.01(g)).

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 the Commitments to such Borrower have not been irrevocably
terminated, 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 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

33

 

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 clause (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;

     (vii) use the proceeds of the Advances to it for general corporate or limited liability
company purposes, as the case may be (including the refinancing of its commercial paper and the
making of acquisitions), but in no event for any purpose which would be contrary to Section
4.01(g) or 4.01(h); and

     (viii) pay, prior to delinquency, all of its federal income taxes and other material taxes and
governmental charges, except to the extent that (a) such taxes or charges are being contested in
good faith and by proper proceedings and against which adequate reserves are being maintained or
(b) failure to pay such taxes or charges would not reasonably be expected to have a Material
Adverse Effect.

          (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;

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     (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,
2003), 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 cash flows 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 clause (ii) or (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 purchase, benefit or dividend reinvestment plans of such Borrower or such
Subsidiary);

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     (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.

Each Borrower may provide information, documents and other materials that it is obligated to
furnish to the Administrative Agent pursuant to this Section 5.01(b) and all other notices,
requests, financial statements, financial and other reports, certificates and other information
materials, but excluding any communication that (i) relates to a request for a Credit Extension,
(ii) relates to the payment of any amount due under this Agreement prior to the scheduled date
therefor or any reduction of the Commitments, (iii) provides notice of any Event of Default or
Unmatured Event of Default or (iv) is required to be delivered to satisfy any condition precedent
to the effectiveness of this Agreement or any Credit Extension hereunder (any non-excluded
communication described above, a “Communication”), electronically (including by posting
such documents, or providing a link thereto, on Exelon’s Internet website). Notwithstanding the
foregoing, each Borrower agrees that, to the extent requested by the Administrative Agent, it will
continue to provide “hard copies” of Communications to the Administrative Agent.

Each Borrower further agrees that the Administrative Agent may make Communications available to the
Lenders by posting such Communications on Intralinks or a substantially similar electronic
transmission system (the “Platform”).

THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE ADMINISTRATIVE AGENT DOES NOT WARRANT THE
ACCURACY OR COMPLETENESS OF ANY COMMUNICATION OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY
DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN ANY COMMUNICATION. NO WARRANTY OF ANY KIND, EXPRESS,
IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY
THE ADMINISTRATIVE AGENT IN CONNECTION WITH ANY COMMUNICATION OR THE PLATFORM. IN NO EVENT SHALL
THE ADMINISTRATIVE AGENT HAVE ANY LIABILITY TO ANY BORROWER, ANY LENDER OR ANY OTHER PERSON
FOR

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DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY
BORROWER’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET,
EXCEPT TO THE EXTENT SUCH DAMAGES ARE FOUND IN A FINAL NONAPPEALABLE JUDGMENT BY A COURT OF
COMPETENT JURISDICTION TO HAVE RESULTED FROM SUCH PERSON’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
WITHOUT LIMITING THE FOREGOING, UNDER NO CIRCUMSTANCES SHALL THE ADMINISTRATIVE AGENT BE LIABLE FOR
ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OF THE PLATFORM
OR ANY BORROWER’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE
INTERNET.

Each Lender agrees that notice to it (as provided in the next sentence) specifying that a
Communication has been posted to the Platform shall constitute effective delivery of such
Communication to such Lender for purposes of this Agreement. Each Lender agrees (i) to notify the
Administrative Agent from time to time of the e-mail address to which the foregoing notice may be
sent and (ii) that such notice may be sent to such e-mail address.

     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 the Commitments to such Borrower have not been irrevocably
terminated (except with respect to Section 5.02(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 PECO,
Genco and, on and after the PSEG Merger Date, PSE&G, 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 such Special Purpose Subsidiary; (ix) in the case of PECO, (A) Liens
granted

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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; (x) in the case of Exelon (on and after the PSEG Merger Date), (A)
Liens granted under the PSE&G Mortgage and Liens permitted under the PSE&G Mortgage, and (B) Liens
securing PSE&G’s notes collateralized solely by mortgage bonds of PSE&G issued under the terms of
the PSE&G Mortgage, (xi) in the case of PECO 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 any Subsidiary thereof, the proceeds received from such sale
shall immediately be applied to retire mortgage bonds of PECO issued under the terms of the PECO
Mortgage, 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, Genco and their Subsidiaries, $1,000,000,000; (xii) in the case
of Exelon (on and after the PSEG Merger Date), Liens arising in connection with sale and leaseback
transactions entered into by PSE&G or a Subsidiary thereof, but only to the extent (I) the proceeds
received from such sale shall immediately be applied to retire mortgage bonds of PSE&G issued under
the terms of the PSE&G Mortgage, 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 PSE&G and its Subsidiaries, $50,000,000, (xiii)
Liens securing Permitted Obligations; and (xiv) Liens, other than those described in clauses
(i) through (xiii) of this Section 5.02(a), 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 Liens permitted by clause (xiv) of this Section 5.02(a) 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 Genco, $50,000,000 (prior to the Power Merger Date)
and $75,000,000 (on and after the Power Merger Date), and (III) 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 before and after 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) 

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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) Interest Coverage Ratio. Permit its Interest Coverage Ratio as of the last day of
any fiscal quarter to be less than (i) in the case of Exelon, 2.65 to 1.0; (ii) in the case of
PECO, 2.25 to 1.0; and (iii) in the case of Genco, 3.25 to 1.0.

          (d) Continuation of Businesses. Engage in, or permit any of its Subsidiaries (other
than any ComEd Entity or, on or after the PSEG Merger Date, Energy Holdings Entity) 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.

          (e) Capital Structure. In the case of Exelon, fail at any time to own, free and clear
of all Liens, 100% of the issued and outstanding common shares or other common ownership interests
of each of PECO and, on and after the PSEG Merger Date, PSE&G and 100% of the issued and
outstanding membership interests of Genco (or, in any such case, 100% of a holding company which
owns, free and clear of all Liens, at least 100% of the issued and outstanding common shares or
other common ownership interests of PECO or, on and after the PSEG Merger Date, PSE&G, as
applicable, or 100% of the issued and outstanding membership interests of Genco).

          (f) Restrictive Agreements. In the case of Exelon, permit Genco, PECO or, on and after
the PSEG Merger Date, PSE&G, or any holding company for any of the foregoing described in the
parenthetical clause at the end of Section 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 Wachovia Bank, National Association (f/k/a First Union National Bank), as
trustee, as amended and supplemented to the date hereof, or any other indenture that has terms
substantially similar to such Indenture and that relates to the issuance of trust preferred
securities, 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) PSE&G
relating to the priority payment of dividends on any outstanding shares of its prior preferred
stock and preference stock as set forth in its Restated Certificate of Incorporation, as in effect
on the date hereof.

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):

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          (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 5.01(a)(vii), Section 5.01(b)(i) or Section 5.02, 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

          (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 hereunder, 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

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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 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 Section 6.01(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 is reasonably
likely to result in the termination of any Plan or in the appointment by the appropriate United
States District Court of a trustee to administer a Plan shall have occurred and be continuing 60
days after written notice to such effect shall have been given to such Borrower by the
Administrative Agent; (ii) any Plan shall be terminated; (iii) a Trustee shall be appointed by an
appropriate United States District Court to administer any Plan; (iv) the PBGC shall institute
proceedings to terminate any Plan or to appoint a trustee to administer any Plan; or (v) any
Borrower or any member of the Controlled Group withdraws from any Multiemployer Plan;
provided that on the date of any event described in clauses (i) through (v)
above, the Unfunded Liabilities of the applicable Plan exceed $100,000,000; and provided,
further, that no event described in this Section 6.01(g) that arises out of the
institution by or against any ComEd Entity of any bankruptcy, insolvency or similar proceeding
shall constitute an Event of Default with respect to any Borrower unless 15 days shall have elapsed
after the Majority Lenders have reasonably determined, and notified the Borrower in writing, that
such event has had or is reasonably likely to have a Material Adverse Effect (disregarding, solely
for purposes of this Section 6.01(g), subclause (b) of the proviso to clause
(i) of the definition of Material Adverse Effect) on such Borrower; or

          (h) 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

          (i) 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 outstanding principal amount of the Advances to such Borrower,
all interest thereon and all other amounts payable under this Agreement by such

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Borrower (including all contingent LC Obligations) to be forthwith due and payable, whereupon
the outstanding principal amount of such Advances, 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 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 outstanding principal amount
of all Advances to 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 enforcement or collection of the Notes), the
Administrative Agent shall not be required to exercise any discretion 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 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 limiting 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

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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, JPMCB 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 JPMCB in its individual capacity. JPMCB 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 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 limiting 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

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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, Syndication Agent and Co-Lead Arranger. The
titles “Co-Documentation Agent,” “Syndication Agent” and “Co-Lead Arranger” are purely honorific,
and no Person designated as a “Co-Documentation Agent,” the “Syndication Agent” or a “Co-Lead
Arranger” shall have any duties or responsibilities in such capacity.

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, in the
case of an amendment, the Borrowers, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided 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 or 3.02, (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.

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     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: Michael R. Metzner, Telecopy: (312) 394- 5215;
if to any Lender, at its Domestic Lending Office specified in its Administrative Questionnaire or
in the Assignment and Acceptance pursuant to which it became a Lender; and if to the Administrative
Agent, at its address at 1 Chase Plaza, Mail Suite IL1-0010, Chicago, Illinois 60670, Attention:
Mr. Ron Cromey, Telecopy: (312) 385-7096 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.

     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
Co-Lead Arrangers 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 the reasonable fees, internal charges and out-of-pocket expenses of
counsel (including in-house counsel) for the Administrative Agent, the LC Issuer and the Co-Lead
Arrangers with respect thereto and with respect to advising the Administrative Agent, the LC Issuer
and the Co-Lead Arrangers 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 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, any Note issued by such Borrower and the other documents to
be delivered by such Borrower hereunder, including 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

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Advances 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 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, any Note issued by such Borrower or the transactions contemplated
hereby, 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’
respective Sublimits at the time such claims, damages, losses, liabilities, costs or expenses
arose; provided 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 any Note 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 Advances to 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 other rights of set-off) that such Lender may have.

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     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 Section
8.07(g) shall to the extent required by such Section, assign to one or more banks or other
entities all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment, the Advances owing to it, its participation in Facility LCs and any Note
or Notes held by it); provided 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 $5,000,000 or, if less, the entire amount of such
Lender’s Commitment, and shall be an integral multiple of $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 $3,500 (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 any Note to a Federal Reserve Bank, provided that no such assignment shall release the
transferor Lender from any of its obligations hereunder.

47

 

          (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 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, if any, 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, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt
notice thereof to the Borrowers.

          (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 all or a portion of its Commitment, the Advances owing to it, its
participation in Facility LCs and any Note or Notes held by it); provided 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

48

 

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 any Note
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, 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, 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), 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.
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

49

 

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 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(h) 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 ALL 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 ANY NOTE 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 ANY NOTE ANY
SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO,
ACTUAL DAMAGES.

50

 

     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.

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

     SECTION 8.12 USA PATRIOT ACT NOTIFICATION. The following notification is provided to
the Borrowers pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government fight the
funding of terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each person or entity that
opens an account, including any deposit account, treasury management account, loan, other extension
of credit, or other financial services product. What this means for a Borrower: When any Borrower
opens an account, if such Borrower is an individual, the Administrative Agent and the Lenders will
ask for such Borrower’s name, residential address, tax identification number, date of birth, and
other information that will allow the Administrative Agent and the Lenders to identify such
Borrower, and, if such Borrower is not an individual, the Administrative Agent and the Lenders will
ask for such Borrower’s name, tax identification number, business address, and other information
that will allow the Administrative Agent and the Lenders to identify such Borrower. The
Administrative Agent and the Lenders may also ask, if such Borrower is an individual, to see such
Borrower’s driver’s license or other identifying documents, and, if such Borrower is not an
individual, to see such Borrower’s legal organizational documents or other identifying documents.

     SECTION 8.13 Termination of Existing Agreement. The Borrowers and the Lenders which
are parties to the Existing Agreement (which Lenders constitute the “Majority Lenders” as defined
in the Existing Agreement) and JPMCB, as Administrative Agent under the Existing Agreement, agree
that, on the Closing Date, 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).

[Remainder of the page intentionally left blank]

51

 

     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:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

	 	 	 	 	 
	 	 	PECO ENERGY COMPANY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

	 	 	 	 	 
	 	 	EXELON GENERATION COMPANY, LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

THE LENDERS

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A. (Main Office Chicago), as
	 	 	Administrative Agent, as LC Issuer and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	BARCLAYS BANK PLC,
as Syndication Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	CITIBANK, N.A.,
as Co-Documentation Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	WACHOVIA BANK,
NATIONAL 

ASSOCIATION, as Co-Documentation Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	DRESDNER BANK AG,
NEW YORK AND GRAND CAYMAN BRANCHES, as Co-

Documentation Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	ABN AMRO BANK, N.V., as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	KEYBANK NATIONAL
ASSOCIATION, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	LEHMAN BROTHERS BANK, FSB, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	MORGAN STANLEY BANK, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	BNP PARIBAS, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	MERRILL LYNCH BANK USA, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	UBS LOAN FINANCE LLC, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	THE NORTHERN TRUST
COMPANY, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	MELLON BANK, N.A., as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	MIZUHO CORPORATE
BANK, LTD., as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL
ASSOCIATION, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

	 	 	 	 	 
	 	 	FIFTH THIRD BANK, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Three Year Credit Agreement

 

 

SCHEDULE I

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:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Applicable	 	 	 	 
	 	 	Margin and LC	 	Facility Fee	 	 
	     Status	 	Fee Rate	 	Rate	 	Utilization Fee Rate
	   Level I
	 	 	0.525	%	 	 	0.125	%	 	 	0.100	%
	   Level II
	 	 	0.600	%	 	 	0.150	%	 	 	0.125	%
	   Level III
	 	 	0.700	%	 	 	0.175	%	 	 	0.125	%
	   Level IV
	 	 	0.875	%	 	 	0.250	%	 	 	0.250	%
	   Level V
	 	 	1.200	%	 	 	0.300	%	 	 	0.500	%

     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 table above 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 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.

I-1

 

     “Status” means Level I Status, Level II Status, Level III Status, Level IV Status or
Level V Status.

     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.

I-2

 

SCHEDULE II

COMMITMENTS

	 	 	 	 	 
	                     LENDER	 	COMMITMENT	 
	 
	JPMorgan Chase Bank, N.A.
	 	$	55,333,333.34	 
	Barclays Bank PLC
	 	$	30,666,666.67	 
	Citibank, N.A.
	 	$	29,166,666.66	 
	Wachovia Bank, National Association
	 	$	29,166,666.66	 
	Bank of America, N.A.
	 	$	24,666,666.67	 
	Morgan Stanley Bank
	 	$	24,666,666.67	 
	Merrill Lynch Bank USA
	 	$	24,666,666.67	 
	The Bank of Nova Scotia
	 	$	24,666,666.67	 
	Credit Suisse First Boston
	 	$	18,333,333.33	 
	KeyBank National Association
	 	$	24,666,666.67	 
	Lehman Brothers Bank, FSB
	 	$	14,666,666.67	 
	UBS Loan Finance LLC
	 	$	24,666,666.67	 
	BNP Paribas
	 	$	24,666,666.67	 
	The Bank of New York
	 	$	15,000,000.00	 
	Mellon Bank, N.A.
	 	$	15,000,000.00	 
	ABN AMRO Bank, N.V.
	 	$	29,166,666.66	 
	Dresdner Bank, AG New York and Grand Cayman Branches
	 	$	39,166,666.66	 
	The Northern Trust Company
	 	$	15,000,000.00	 
	U.S. Bank National Association
	 	$	10,000,000.00	 
	Wells Fargo Bank, N.A.
	 	$	10,000,000.00	 
	Mizuho Corporate Bank, Ltd.
	 	$	10,000,000.00	 
	Fifth Third Bank
	 	$	6,666,666.66	 
	 
	 	 	 
	TOTAL
	 	$	500,000,000	 
	 
	 	 	 

SCHEDULE III

EXISTING LETTERS OF CREDIT

[Exelon to Confirm]

II-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Number	 	Type	 	Borrower	 	Current	 	Original	 	Actual	 	Adjusted
	 	 	 	 	 	 	 	 	 	 	Amount	 	Amount	 	Expiration	 	Expiration
	 	 	 	 	 	 	 	 	 	 	(in Dollars)	 	(in Dollars)	 	 	 	 	 	 
	 
	SLT3253
	 	Standby Letter of Credit	 	Exelon	 	 	220,000.00	 	 	 	200,000.00	 	 	20-May-2004	 	20-May-2004
	SLT3254
	 	Standby Letter of Credit	 	Exelon	 	 	2,155,500.00	 	 	 	2,155,500.00	 	 	19-Dec-2003	 	19-Dec-2003
	SLT3254
	 	Standby Letter of Credit	 	Exelon	 	 	87,669.00	 	 	 	87,669.00	 	 	31-Jul-2004	 	2-Aug-2004
	SLT3256
	 	Standby Letter of Credit	 	Exelon	 	 	3,400,000.00	 	 	 	3,400,000.00	 	 	19-Dec-2003	 	19-Dec-2003
	SLT3256
	 	Standby Letter of Credit	 	Exelon	 	 	1,700,000.00	 	 	 	1,700,000.00	 	 	19-Dec-2003	 	19-Dec-2003
	SLT3256
	 	Standby Letter of Credit	 	Exelon	 	 	250,000.00	 	 	 	250,000.00	 	 	30-Sep-2004	 	30-Sep-2004
	SLT3258
	 	Standby Letter of Credit	 	Exelon	 	 	2,700,000.00	 	 	 	2,200,000.00	 	 	30-Nov-2003	 	1-Dec-2003
	SLT3259
	 	Standby Letter of Credit	 	Exelon	 	 	1,800,000.00	 	 	 	1,800,000.00	 	 	30-Apr-2004	 	30-Apr-2004
	SLT3261
	 	Standby Letter of Credit	 	Exelon	 	 	12,500,000.00	 	 	 	9,000,000.00	 	 	31-Dec-2003	 	31-Dec-2003
	SLT3262
	 	Standby Letter of Credit	 	Exelon	 	 	60,600.00	 	 	 	60,600.00	 	 	15-Nov-2004	 	15-Nov-2004
	SLT3263
	 	Standby Letter of Credit	 	Exelon	 	 	400,000.00	 	 	 	400,000.00	 	 	31-Mar-2004	 	31-Mar-2004
	SLT3264
	 	Standby Letter of Credit	 	Exelon	 	 	1,516,368.40	 	 	 	1,397,374.60	 	 	24-Apr-2004	 	26-Apr-2004
	SLT3266
	 	Standby Letter of Credit	 	Exelon	 	 	5,500,000.00	 	 	 	5,500,000.00	 	 	31-Mar-2004	 	31-Mar-2004
	SLT3266
	 	Standby Letter of Credit	 	Exelon	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	31-May 2004	 	1-Jun-2004
	SLT3266
	 	Standby Letter of Credit	 	Exelon	 	 	635,000.00	 	 	 	575,000.00	 	 	31-May-2004	 	1-Jun-2004
	SLT3269
	 	Standby Letter of Credit	 	Exelon	 	 	1,700,000.00	 	 	 	1,700,000.00	 	 	12-Aug-2004	 	12-Aug-2004
	SLT3298
	 	Standby Letter of Credit	 	Exelon	 	 	1,500,000.00	 	 	 	1,400,000.00	 	 	31-Mar-2004	 	31-Mar-2004
	SLT3298
	 	Standby Letter of Credit	 	Exelon	 	 	5,000,000.00	 	 	 	5,000,000.00	 	 	30-Sep-2004	 	30-Sep-2004
	SLT3299
	 	Standby Letter of Credit	 	Exelon	 	 	400,000.00	 	 	 	400,000.00	 	 	30-Jun-2004	 	30-Jun-2004
	SLT3301
	 	Standby Letter of Credit	 	Exelon	 	 	2,000,000.00	 	 	 	2,000,000.00	 	 	30-Sep-2004	 	20-Sep-2004
	SLT3302
	 	Standby Letter of Credit	 	Exelon	 	 	250,000.00	 	 	 	250,000.00	 	 	21-Nov-2004	 	21-Nov-2004
	SLT3308
	 	Standby Letter of Credit	 	Exelon	 	 	2,000,000.00	 	 	 	2,000,000.00	 	 	31-Aug-2004	 	31-Aug-2004
	SLT3308
	 	Standby Letter of Credit	 	Exelon	 	 	1,000,000.00	 	 	 	1,000,000.00	 	 	30-Jun-2004	 	30-Jun-2004
	SLT3309
	 	Standby Letter of Credit	 	Exelon	 	 	6,125,000.00	 	 	 	6,125,000.00	 	 	1-Dec-2003	 	1-Dec-2003
	SLT3309
	 	Standby Letter of Credit	 	Exelon	 	 	185,000.00	 	 	 	185,000.00	 	 	9-Feb-2004	 	9-Feb-2004
	SLT3318
	 	Standby Letter of Credit	 	Exelon	 	 	1,500,000.00	 	 	 	1,500,000.00	 	 	14-Apr-2004	 	14-Apr-2004
	SLT3320
	 	Standby Letter of Credit	 	Exelon	 	 	1,364,500.00	 	 	 	1,364,500.00	 	 	31-Dec-2003	 	31-Dec-2003
	SLT3324
	 	Standby Letter of Credit	 	Exelon	 	 	250,000.00	 	 	 	250,000.00	 	 	30-Jun-2004	 	30-June-2004
	SLT7516
	 	Standby Letter of Credit	 	Exelon	 	 	100,000.00	 	 	 	100,000.00	 	 	10-Sep-2004	 	10-Sep-2004
	SLT7516
	 	Standby Letter of Credit	 	Exelon	 	 	10,000,000.00	 	 	 	10,000,000.00	 	 	7-Oct-2004	 	7-Oct-2004
	SLT3300
	 	Standby Letter of Credit	 	Exelon	 	 	700,000.00	 	 	 	700,000.00	 	 	31-Oct-2003	 	31-Oct-2003

 

 

EXHIBIT A

FORM OF NOTE

Dated:[               ], 20__

     FOR VALUE RECEIVED, the undersigned,                     , a                    (the
“Borrower”), HEREBY PROMISES TO PAY to the order
of                     (the “Lender”), for the account of its
Applicable Lending Office (such term and other capitalized terms herein being used as defined in
the Credit Agreement referred to below) on the Maturity Date, the aggregate principal amount of all
outstanding Advances made by the Lender to the Borrower pursuant to the Credit Agreement.

     The Borrower further promises to pay interest on the unpaid principal amount of each Advance
from the date of such Advance until such principal amount is paid in full, at such interest rates,
and payable at such times, as are specified in the Credit Agreement.

     Both principal and interest are payable in lawful money of the United States of America to
JPMorgan Chase Bank, N.A., as Administrative Agent, at 1 Chase Plaza, Chicago, Illinois 60670, in
immediately available funds. Each Advance made by the Lender to the Borrower pursuant to the
Credit Agreement, and all payments made on account of principal thereof, shall be recorded by the
Lender and, at the Lender’s option, endorsed on the grid attached hereto which is part of this
Promissory Note.

     This Promissory Note is one of the Notes referred to in, and is entitled to the benefits of,
the Three Year Credit Agreement dated as of October 31, 2003 among the Borrower, [Exelon
Corporation, PECO Energy Company, Exelon Generation Company, LLC], various financial institutions
and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended, modified or supplemented from
time to time, the “Credit Agreement”). The Credit Agreement, among other things, (i) provides for
the making of Advances by the Lender to the Borrower from time to time in an aggregate amount not
to exceed at any time outstanding the Lender’s Pro Rata Share of the Borrower’s Sublimit at such
time and (ii) contains provisions for acceleration of the maturity hereof upon the happening of
certain stated events and also for prepayments on account of principal hereof prior to the maturity
hereof upon the terms and conditions therein specified.

     The Borrower hereby waives presentment, demand, protest and notice of any kind. No failure to
exercise, and no delay in exercising, any rights hereunder on the part of the holder hereof shall
operate as a waiver of such rights.

A-1

 

     THIS PROMISSORY NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
COMMONWEALTH OF PENNSYLVANIA

	 	 	 
	 

	 	[EXELON CORPORATION]
	 

	 	[PECO ENERGY COMPANY]
	 

	 	[EXELON GENERATION COMPANY, LLC]
	 
	 	 
	 

	 	[By                                                                                                    ]
	 

	 	[Name:]
	 

	 	[Title:]

A-2

 

ADVANCES AND PAYMENTS OF PRINCIPAL

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Amount of	 	 
	 	 	 	 	Principal	 	Unpaid	 	 
	 	 	Amount of	 	Paid or	 	Principal	 	Notation
	Date	 	Advance	 	Prepaid	 	Balance	 	Made By
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

A-3

 

EXHIBIT B

FORM OF NOTICE OF BORROWING

JPMorgan Chase Bank, N.A., as Administrative Agent

for the Lenders parties to the Credit Agreement referred to below

1 Chase Plaza

Chicago, Illinois 60670

[Date]

Attention: Utilities Department

North American Finance Group

Ladies and Gentlemen:

               The undersigned, [Exelon Corporation] [PECO Energy Company] [Exelon Generation Company, LLC],
refers to the Three Year Credit Agreement, dated as of October 31, 2003, among Exelon Corporation,
PECO Energy Company, Commonwealth Edison Company, Exelon Generation Company, LLC, various financial
institutions and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended, modified or
supplemented from time to time, the “Credit Agreement”), and hereby gives you notice, irrevocably,
pursuant to Section 2.02(a) of the Credit Agreement that the undersigned requests a Borrowing under
the Credit Agreement, and in that connection sets forth below
the information relating to such Borrowing (the “Proposed Borrowing”) as required by Section
2.02(a) of the Credit Agreement:

            (i) The Business Day of the Proposed Borrowing is ___, 20___.

            (ii) The Type of Advances to be made in connection with the Proposed
Borrowing is [Base Rate Advances] [Eurodollar Rate Advances].

            (iii) The aggregate amount of the Proposed Borrowing is $                    .

            (iv) The Interest Period for each Advance made as part of the Proposed
Borrowing is [___month[s]].

               The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Borrowing:

            (A) the representations and warranties of the undersigned contained in Section 4.01
of the Credit Agreement (excluding, if the proceeds of the Proposed Borrowing will be
used exclusively to repay commercial paper issued by the undersigned, the representations
and warranties set forth in Section 4.01(e) and the first sentence of Section 4.01(f) of
the Credit Agreement) are correct, before and after giving effect to the Proposed
Borrowing and to the application of the proceeds therefrom, as though made on and as of
such date;

B-1

 

            (B) no event has occurred and is continuing, or would result from such Proposed
Borrowing or from the application of the proceeds therefrom, that constitutes an Event of
Default or Unmatured Event of Default; and

            (C) after giving effect to the Proposed Borrowing, the undersigned will not have
exceeded any limitation on its ability to incur indebtedness (including any limitation
imposed by any governmental or regulatory authority).

	 	 	 
	 

	 	Very truly yours,
	 
	 	 
	 

	 	[EXELON CORPORATION]
	 

	 	[PECO ENERGY COMPANY]
	 

	 	[EXELON GENERATION COMPANY, LLC]
	 
	 	 
	 

	 	[By                                                                                                                        ]
	 

	 	[Name:]
	 

	 	[Title:]

B-2

 

EXHIBIT C

FORM OF ASSIGNMENT AND ACCEPTANCE

Dated                     , 20__

     Reference is made to the Three Year Credit Agreement dated as of October 31, 2003 among Exelon
Corporation, PECO Energy Company, Exelon Generation Company, LLC (together the “Borrowers”),
various financial institutions and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended,
modified or supplemented from time to time, the “Credit Agreement”). Terms defined in the Credit
Agreement are used herein with the same meaning.

                          (the “Assignor”) and                      (the “Assignee”) agree as follows:

          1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases
and assumes from the Assignor, that interest in and to all of the Assignor’s rights and obligations
under the Credit Agreement as of the date hereof which represents the Pro Rata Share specified on
Schedule 1 of all outstanding rights and obligations under the Credit Agreement, including, without
limitation, a corresponding interest in the Assignor’s Commitment, the Advances owing to the
Assignor, the Assignor’s interest in Facility LCs and the Notes held by the Assignor. After giving
effect to such sale and assignment, the Assignee’s Commitment Amount will be as set forth in
Section 2 of Schedule 1.

          2. The Assignor (i) represents and warrants that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and clear of any adverse
claim; (ii) makes no representation or warranty and assumes no responsibility with respect to any
statement, warranty or representation made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any instrument or document furnished pursuant thereto; and (iii) 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 the
Credit Agreement or any other instrument or document furnished pursuant thereto.

          3. The Assignee (i) confirms that it has received a copy of the Credit Agreement, together
with such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Acceptance; (ii) agrees that it will,
independently and without reliance upon the Administrative Agent, the Lead Arranger, the LC Issuer,
the Assignor 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 the Credit Agreement; (iii) confirms that it is an Eligible Assignee; (iv) appoints and
authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such
powers under the Credit Agreement as are delegated to the Administrative Agent by the terms
thereof, together with such powers as are reasonably incidental thereto; (v) agrees that it will
perform in accordance with their terms all of the obligations which by the terms of the Credit
Agreement are required to be performed by it as a Lender; (vi) confirms that none of the
consideration used to make the purchase being made by

C-1

 

the Assignee hereunder are “plan assets” as defined under ERISA; and the rights and interests of
the Assignee in and under the Credit Agreement will not be “plan assets” under ERISA; [and] (vii)
specifies as its Domestic Lending Office (and address for notices) and Eurodollar Lending Office
the offices set forth beneath its name on the signature pages hereof [;and (viii) attaches the
forms prescribed by the Internal Revenue Service of the United States certifying that it is exempt
from United States withholding taxes with respect to all payments to be made to the Assignee under
the Credit Agreement and the Notes].1

          4. Following the execution of this Assignment and Acceptance by the Assignor and the Assignee,
it will be delivered to the Administrative Agent for acceptance by Exelon (if required), the LC
Issuer and the Administrative Agent and recording by the Administrative Agent. The effective date
of this Assignment and Acceptance shall be the date of recording thereof by the Administrative
Agent, unless otherwise specified on Schedule 1 hereto (the “Effective Date”).

          5. Upon such recording by the Administrative Agent, as of the Effective Date, (i) the Assignee
shall be a party to the Credit Agreement and, to the extent provided in this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to
the extent provided in this Assignment and Acceptance, relinquish its rights and be released from
its obligations under the Credit Agreement.

          6. Upon such recording by the Administrative Agent, from and after the Effective Date, the
Administrative Agent shall make all payments under the Credit Agreement and the Notes in respect of
the interest assigned hereby (including, without limitation, all payments of principal, interest
and fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all
appropriate adjustments in payments under the Credit Agreement and the Notes for periods prior to
the Effective Date directly between themselves.

          7. THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE
COMMONWEALTH OF PENNSYLVANIA.

 

			
	1	 	If the Assignee is organized under the laws of a jurisdiction outside the United States.

C-2

 

     IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Acceptance to be
executed by their respective officers thereunto duly authorized, as of the date first above
written.

	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 	 	[NAME OF ASSIGNEE]
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 	 	Domestic Lending Office (and

	 	 	   address for notices):

	 	 	          [Address]
	 
	 	 	 	 
	 	 	Eurodollar Lending Office:
	 	 	          [Address]

C-3

 

[Consented
to this       day

of                     , 20___]

EXELON CORPORATION

By                                                            

Name:

Title:

Consented
to and Accepted this       day

of                     , 20___

JPMORGAN CHASE BANK, N.A., as Administrative Agent and LC Issuer

By                                                            

Name:

Title:

C-4

 

Schedule 1

to

Assignment and Acceptance

Dated      , 20____

Section 1.

          Pro Rata Share: ___%

Section 2.

          Assignee’s Commitment Amount after giving effect hereto: $___

Section 3.

          Effective Date2: ___, 20___

 

			
	2	 	This date should be no earlier than the date of recording by the Administrative Agent.

C-5

 

 

EXHIBIT D – 1

FORM OF OPINION OF BALLARD SPAHR ANDREWS & INGERSOLL

October 31, 2003

To each of the Agents and the Lenders which is a party to the
Credit Agreement, dated as of October 31, 2003, among Exelon
Corporation, Commonwealth Edison Company, PECO Energy Company
and Exelon Generation Company, LLC, as Borrowers, the various
financial institutions named therein, as Lenders and JPMorgan
Chase Bank, N.A., as Administrative Agent

          Re: $750,000,000 Three-Year Credit Agreement

Ladies and Gentlemen:

     This opinion letter is furnished to you pursuant to Section 3.01(v) of the $750,000,000
Three-Year Credit Agreement, dated as of October 31, 2003(the “Agreement”), among Exelon
Corporation (“Exelon”), Commonwealth Edison Company (“ComEd”), PECO Energy Company (“PECO”) and
Exelon Generation Company, LLC (“Genco”), as Borrowers, the various financial institutions named
therein, as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent. Unless otherwise
specified, terms defined in the Agreement are used herein as therein defined.

     We have acted as special counsel for Exelon, Genco and PECO (collectively, the “Pennsylvania
Borrowers”) in connection with the preparation, execution and delivery of the Agreement and as
local counsel for ComEd with respect to certain matters of Pennsylvania law relating to the
Agreement. In that capacity, we have examined the following:

     (i) The Agreement, the Notes executed by Exelon (the “Exelon Notes”), the Notes
executed by PECO (the “PECO Notes”), the Notes executed by Genco (the “Genco Notes”) and
the Notes executed by ComEd (the “ComEd Notes” and, together with the Exelon Notes, the
PECO Notes and the Genco Notes, the “Notes”);

     (ii) The documents furnished by each of the Pennsylvania Borrowers pursuant to
Section 3.01 of the Agreement;

     (iii) The Articles of Incorporation of each of Exelon and PECO and all amendments
thereto (in each case, its “Charter”);

     (iv) The by-laws of each of Exelon and PECO and all amendments thereto (in each
case, its “By-laws”);

  D-1-1

 

 

     (v) The Operating Agreement of Genco and all amendments thereto
(the “Operating Agreement”);

     (vi) A certificate from the Secretary of State of the Commonwealth of
Pennsylvania dated October 29, 2003 certifying as to the subsistence of Exelon in
Pennsylvania;

     (vii) A certificate from the Secretary of State of the Commonwealth of Pennsylvania
dated October 29, 2003 certifying as to the subsistence of PECO in Pennsylvania; and

     (viii) A certificate from the Secretary of State of the Commonwealth of Pennsylvania
dated October 29, 2003 certifying as to the subsistence of Genco in Pennsylvania;

     We have also examined, and relied upon the accuracy of factual matters contained in, originals
or copies, certified or otherwise identified to our satisfaction, of such other corporate or
organizational records of the Pennsylvania Borrowers, certificates or comparable documents of
public officials and of officers of the Pennsylvania Borrowers, and such other agreements,
instruments and documents and have made such examinations of law as we have deemed necessary in
connection with the opinions set forth below.

     We have assumed the legal capacity and competence of natural persons,
the genuineness of all signatures, the authenticity of all documents submitted to us as
originals and the conformity to original documents of documents submitted to us as certified,
conformed, photostatic, electronic or facsimile copies. We have made no independent factual
investigation other than as described above, and as to other factual matters, we have relied
exclusively on the facts stated in the representations and warranties contained in the Agreement
and the Exhibits and Schedules to the Agreement (other than representations and warranties
constituting conclusions of law on matters on which we opine). We have not examined any records of
any court, administrative tribunal or other similar entity in connection with our opinion.

     When an opinion or confirmation is given to our knowledge or with reference to matters of
which we are aware or which are known to us, or with another similar qualification, the relevant
knowledge or awareness is limited to the actual contemporaneous knowledge or awareness of facts,
without investigation, by the lawyer who is the current primary contact for each of the
Pennsylvania Borrowers and the individual lawyers in this firm who have participated in the
specific transaction to which this opinion letter relates.

     We have also assumed, without verification, (i) that the parties to the Agreement and the
other agreements, instruments and documents executed in connection therewith, other than the
Borrowers, have the power (including, without limitation, corporate power where applicable) and
authority to enter into and perform the Agreement and such other agreements, instruments and
documents, (ii) the due authorization, execution and delivery by such parties other than the
Borrowers of the Agreement and such other agreements, instruments and documents, (iii) that the
Agreement and such other agreements, instruments and documents constitute legal, valid and binding
obligations of each such party other than the Borrowers,

  D-1-2

 

 

enforceable against each such other party in accordance with their respective terms and (iv) the
amount of a Borrower’s borrowings outstanding under the Agreement and the $750,000,000 3-Day Credit
Agreement being entered into by the Borrower concurrently with this Agreement will not exceed the
amount such Borrower is authorized to borrow under any approval referred to in Paragraphs 4 and 8
below.

     Based upon the foregoing and subject to the assumptions, exceptions, limitations and
qualifications set forth herein, we are of the opinion that:

     1. Each of Exelon and PECO is a corporation duly incorporated and presently
subsisting under the laws of the Commonwealth of Pennsylvania. Genco is a limited
liability company duly formed and presently subsisting under the laws of the
Commonwealth of Pennsylvania.

     2. The execution and delivery, and the performance of the obligations thereunder, by
the Pennsylvania Borrowers of the Agreement and the applicable Notes (a) are within the
Pennsylvania Borrowers’ corporate or limited liability company powers, (b) have been duly
authorized by all necessary corporate and
limited liability company action of each of the Pennsylvania Borrowers, (c) do not
contravene (i) the Charter, By-laws or the Operating Agreement, as the case may be, of
each of the Pennsylvania Borrowers, (ii) any law of the United States or the Commonwealth
of Pennsylvania or (iii) to our knowledge, any agreement or instrument to which any of the
Pennsylvania Borrowers is a party or by which any of the Pennsylvania Borrowers is bound
and (d) to our knowledge, do not result in or require the creation of any lien, security
interest or other charge or encumbrance upon or with respect to any of the Pennsylvania
Borrowers’ properties under such agreements or instruments.

     3. The execution, delivery and performance by ComEd of the Agreement and the
ComEd Notes do not contravene any law of the Commonwealth of Pennsylvania.

     4. No consent or approval of, or notice to or filing with, any federal or state
regulatory authority of the United States or the Commonwealth of Pennsylvania is required
by the Pennsylvania Borrowers in connection with the execution or delivery by the
Pennsylvania Borrowers of the Agreement or the applicable Notes, except for, in the case
of Exelon and Genco, the authorization of the U.S. Securities and Exchange Commission
under the Public Utility Holding Company Act of 1935 and, in the case of PECO, approval
from the Public Utility Commission of the Commonwealth of Pennsylvania, which
authorization and approval have been received and are in full force and effect.

     5. The Agreement and the Exelon Notes have been duly executed and delivered by
Exelon, and the Agreement and the Exelon Notes constitute the legal, valid and binding
obligations of Exelon, enforceable against Exelon in accordance with their respective
terms.

  D-1-3

 

 

     6. The Agreement and the PECO Notes have been duly executed and delivered by PECO,
and the Agreement and the PECO Notes constitute the legal, valid and binding obligations
of PECO, enforceable against PECO in accordance with their respective terms.

     7. The Agreement and the Genco Notes have been duly executed and delivered by Genco,
and the Agreement and the Genco Notes constitute the legal, valid and binding obligations
of Genco, enforceable against Genco in accordance with their respective terms.

     8. Assuming that the execution, delivery and performance of the
Agreement and the ComEd Notes are within ComEd’s corporate power and the Agreement and
the ComEd Notes have been duly authorized, executed and delivered by ComEd after
receipt of all required governmental and regulatory approvals, the Agreement and the
ComEd Notes constitute the legal, valid and binding obligations of ComEd, enforceable
against ComEd in accordance with
their respective terms.

     9. None of the Pennsylvania Borrowers is an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act
of 1940, as amended.

     We do not have knowledge, after inquiry of each lawyer in this firm who is the current primary
contact for the Borrowers or who has devoted substantive attention to matters on behalf of the
Borrowers during the preceding twelve months and who is still currently employed by or a member of
this firm, except as disclosed in Exelon’s Annual Report on Form 10-K for the year ended December
31, 2002 or Exelon’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003, no
litigation or governmental proceeding is pending or threatened in writing against any Borrower (i)
with respect to the Agreement or the Notes, or (ii) which is likely to have a material adverse
effect upon the financial condition, business, properties or prospects of any Borrower and its
subsidiaries taken as a whole.

     The foregoing opinions are subject to the following exceptions, limitations and qualifications:

     (a) Our opinions are subject to the effect of applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, fraudulent transfer marshalling or similar laws
affecting creditors’ rights and remedies generally; general principles of equity, including without
limitation, concepts of materiality, reasonableness, good faith and fair dealing (regardless of
whether such enforceability is considered in a proceeding in equity or at law); and limitations on
enforceability of rights to indemnification or contribution by federal or state securities laws or
regulations or by public policy.

     (b) We draw your attention to the provisions of Section 911(b) of the Pennsylvania Crimes Code
(the “Crimes Code”), 18 Pa. C.S.§ 911(b), in connection with the fact that the Advances bear
floating rates of interest. Section 911(b) of the Crimes Codes makes it unlawful to use or invest
income derived from a pattern of “racketeering activity” in the

  D-1-4

 

 

establishment or operation of any enterprise. “Racketeering activity,” as defined in the Crimes
Code, includes the collection of money or other property in full or partial satisfaction of a debt
which arose as the result of the lending of money or other property at a rate of interest exceeding
25% per annum where not otherwise authorized by law.

     (c) We express no opinion as to the application or requirements of federal or state securities
(except with respect to the opinion in paragraph 9), patent, trademark, copyright, antitrust and
unfair competition, pension or employee benefit, labor, environmental health and safety or tax laws
in respect of the transactions contemplated by or referred to in the Agreement.

     (d) We express no opinion as to the validity or enforceability of any provision of the
Agreement or the Notes which (i) permits the Lenders to increase the rate of interest or to collect
a late charge in the event of delinquency or default to the extent deemed to be penalties or
forfeitures; (ii) purports to be a waiver by any Borrower of any right or benefit except to the
extent permitted by applicable law; (iii) purports to require that waivers must be in writing to
the extent that an oral agreement or implied agreement by trade practice or course of conduct
modifying provisions of the Agreement or the Notes has been made; (iv) purports to exculpate any
party from its own negligent acts; or (v) purports to authorize any Participant to set off and
apply any deposits at any time held, and any other indebtedness at any time owing, by such
Participant to or for the account of any Borrower.

     We express no opinion as to the law of any jurisdiction other than the law of the Commonwealth
of Pennsylvania and the federal law of the United States.

     A copy of this opinion may be delivered by you to each financial institution that may become a
Lender under the Agreement, and such persons may rely on this opinion as if it were addressed to
them and had been delivered to them on the date hereof. This opinion may be relied on by you and
such persons to whom you may deliver copies as provided in the preceding sentence only in
connection with the consummation of the transactions described herein and may not be used or relied
upon by you or any other person for any other purpose, without in each instance our prior written
consent.

     This opinion is limited to the matters expressly stated herein. No implied opinion may be
inferred to extend this opinion beyond the matters expressly stated herein. We do not undertake to
advise you or anyone else of any changes in the opinions expressed herein resulting from changes in
law, changes in facts or any other matters that hereafter might occur or be brought to our
attention.

Very truly yours,

BALLARD SPAHR ANDREWS & INGERSOLL

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EXHIBIT D-2

FORM OF OPINION OF SIDLEY AUSTIN BROWN & WOOD LLP

October 31, 2003

To each of the Agents and Lenders party to the Three Year
Credit Agreement dated as of October 31, 2003 among Exelon
Corporation, Commonwealth Edison Company, PECO Energy
Company and Exelon Generation Company, LLC, as Borrowers,
the various financial institutions named therein, as
Lenders, and
JPMorgan Chase Bank, N.A., as Administrative Agent

Ladies and Gentlemen:

     We have been asked to furnish this letter to you pursuant to Section 3.01(b)(v) of the Three
Year Credit Agreement dated as of October 31, 2003 (the “Credit Agreement”) among Exelon
Corporation (“Exelon”), Commonwealth Edison Company (“ComEd”), PECO Energy Company (“PECO”) and
Exelon Generation Company, LLC (“Genco”), as Borrowers, various financial institutions, as Lenders,
and JPMorgan Chase Bank, N.A., as Administrative Agent. Unless otherwise defined in this letter,
capitalized terms defined in the Credit Agreement are used herein as therein defined.

     We have acted as special Illinois counsel to ComEd in connection with the execution and
delivery of the Credit Agreement and the Notes executed and delivered by ComEd (the “ComEd Notes”).
In that capacity, we have examined:

	 	(i)	 	the Credit Agreement;

	 
	 	(ii)	 	the ComEd Notes;
	 
	 	(iii)	 	the Restated Articles of Incorporation of ComEd and all amendments thereto (the
“ComEd Charter”); and
	 
	 	(iv)	 	(iv) the by-laws of ComEd and all amendments thereto (the “ComEd By-Laws”).

     We are familiar with the corporate proceedings taken by ComEd in connection with the Credit
Agreement and the transactions contemplated thereby. For purposes of expressing the opinions
expressed in this letter, we have relied, as to various questions of fact material thereto, upon
the representations made by ComEd in the Credit Agreement and upon certificates of officers of
ComEd. We have also examined originals, or copies of originals certified to our satisfaction, of
such corporate records of ComEd and such agreements, documents, certificates and other statements
of government officials and other instruments, have examined such questions of law and have
satisfied ourselves as to such matters of fact as we have considered relevant and necessary as a
basis for this letter. We have assumed the genuineness of all signatures, the legal capacity of
all natural persons, the authenticity of all

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documents submitted to us as originals and the conformity with the original documents of all
documents submitted to us as certified or photostatic copies or by facsimile or other means of
electronic transmission. We have also assumed that the amount of ComEd’s borrowings outstanding
under the Credit Agreement and the 364-Day Credit Agreement dated as of October 31, 2003 among
Exelon, ComEd, PECO and Genco, as Borrowers, various financial institutions, as Lenders, and
JPMorgan Chase Bank, N.A., as Administrative Agent, will not exceed the amount that ComEd is
authorized to borrow under any approval referred to in paragraph 5. With respect to any instrument
or agreement executed or to be executed by any party other than ComEd, we have assumed, to the
extent relevant to the opinions set forth herein, that (i) such other party (if not a natural
person) has been duly organized and is validly existing and in good standing
under the laws of its jurisdiction of organization and (ii) such other party has full right, power
and authority to execute, deliver and perform its obligations under each instrument or agreement to
which it is a party and each such instrument or agreement has been duly authorized (if applicable),
executed and delivered by, and is a valid, binding and enforceable agreement or obligation, as the
case may be, of, such other party.

     Based upon the foregoing and subject to the qualifications and limitations stated below, it is
our opinion that:

     1. ComEd is a corporation duly organized, validly existing and in good
standing under the laws of the State of Illinois.

     2. The execution and delivery by ComEd of, and performance by
ComEd of its obligations under, the Credit Agreement and the ComEd Notes are within its
corporate powers, have been duly authorized by all necessary corporate action, and do not
(a) violate any provision of the ComEd Charter, the ComEd By-laws or any law, rule or
regulation known to us to be customarily applicable to transactions of the nature
contemplated by the Credit Agreement or the ComEd Notes or (b) to our knowledge, breach,
constitute a default under or otherwise violate any agreement or instrument to which ComEd
is a party or by which it or its properties are bound; and such execution, delivery and
performance do not, to our knowledge, result in or require the creation of any lien,
security interest or encumbrance on or in any of ComEd’s properties.

     3. The Credit Agreement and the ComEd Notes have been duly executed and
delivered by ComEd.

     4. The Credit Agreement and the ComEd Notes are, to the extent that the laws of the
State of Illinois or the federal laws of the United States are applicable to the
enforcement of ComEd’s obligations thereunder, legal, valid and binding obligations of
ComEd, enforceable against ComEd in accordance with their respective terms, except to the
extent enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws of general applicability relating
to or affecting the enforceability of creditors’ rights generally, and by the effect of
general principles of equity (regardless of whether enforceability is considered in a
proceeding at law or in equity).

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     5. No authorization, approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body of the United States or the State of
Illinois is required for the due execution and delivery by ComEd of, and performance by
ComEd of its obligations under, the Credit Agreement and the ComEd Notes, except for (i)
the authorization of the U.S. Securities and Exchange Commission under the Public Utility
Holding Company Act of 1935, as amended, which authorization has been received, and (ii)
the approval of the
Illinois Commerce Commission under the Illinois Public Utilities Act, as amended,
which approval has been received.

     6. ComEd is not an “investment company” within the meaning of the Investment Company
Act of 1940, as amended (“Investment Company Act”).

     We confirm to you that, to our knowledge, after inquiry of each lawyer in this firm who
currently has supervisory responsibility for matters handled by this firm on behalf of ComEd,
except as disclosed in ComEd’s Annual Report on Form 10-K for the year ended December 31, 2002 and
its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2003 and June 30,
2003, there is no pending or overtly threatened action or proceeding to which ComEd or any of its
Subsidiaries is a party before any court, governmental agency or arbitrator that relates to the
Credit Agreement or the ComEd Notes or that could reasonably be expected to affect materially and
adversely ComEd’s performance of its obligations under the Credit Agreement or the ComEd Notes.

     The opinion as to enforceability set forth in paragraph 4 above is subject to the
qualification that the enforceability of ComEd’s obligations under the Credit Agreement and the
ComEd Notes is subject to general principles of equity (regardless of whether such enforceability
is considered in a proceeding at law or in equity). Such principles of equity are of general
application and, in applying such principles, a court, among other things, might not allow a
contracting party to exercise remedies in respect of a default deemed immaterial, or might decline
to order an obligor to perform covenants. Such principles would include an expectation that parties
act with reasonableness and in good faith, and might be applied, for example, to provisions which
purport to grant a party with the authority to exercise sole discretion or make conclusive
determinations. We note further, that, in addition to the application of equitable principles
described above, courts have imposed an obligation on contracting parties to act reasonably and in
good faith in the exercise of their contractual rights and remedies, and may also apply public
policy considerations in limiting the rights of parties seeking to obtain indemnification.

     With respect to our opinion in paragraph 6 above that ComEd is not an “investment company”
within the meaning of the Investment Company Act, we have relied exclusively, as to all factual
matters, on a certificate, dated as of the date of this letter (the “Certificate”), of J. Barry
Mitchell, Vice President and Treasurer of ComEd (the “Executing Officer”). We note that, for
purposes of determining whether a particular entity is an “investment company” within the meaning
of the Investment Company Act, it is necessary to examine the “value” of the assets of such entity
within the meaning of Section 2(a)(41)(A) of the Investment Company Act. Section 2(a)(41)(A)(ii) of
the Investment Company Act provides that the “value” of certain assets held by an entity shall be
the “fair value” of such assets as

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determined in good faith by such entity’s board of directors (or similar governing body). Although
the Certificate makes certain certifications regarding the value of the assets of ComEd and certain
of its subsidiaries, the Executing Officer did not request the Board of Directors of ComEd or of
any of such subsidiaries to determine the value of any assets required to be valued at “fair value”
pursuant to Section 2(a)(41)(A)(ii), but obtained values from other sources he deemed to be
reliable. We have assumed, however, with your permission, that all assets of ComEd and its
subsidiaries that are required to be valued at “fair value” pursuant to Section 2(a)(41)(A)(ii) of
the Investment Company Act by the Board of Directors of ComEd or of the relevant subsidiary, as the
case may be, would have been valued at the same values ascribed to such assets in the Certificate
had the Board of Directors of ComEd or of the relevant subsidiary determined the “fair value”
thereof pursuant to said section.

     We express no opinion as to the enforceability of provisions of the Credit Agreement that (a)
attempt to exculpate other parties from liability for future actions, inactions or practices, (b)
purport to establish evidentiary standards, (c) purport to confer subject matter jurisdiction on
any court or fix venue, (d) relate to severability or separability, (f) relate to payment without
set-off or that otherwise purport to make obligations of, or determinations by, any party
unconditional and absolute or (g) constitute agreements to agree. We also express no opinion as to
the enforceability of provisions in the Credit Agreement to the effect that terms may not be waived
or modified except in writing.

     Any opinion or statement herein which is expressed to be “to our knowledge” or is otherwise
qualified by words of like import means that the lawyers in this firm who have had an involvement
in reviewing the Credit Agreement and the ComEd Notes have no current conscious awareness of any
facts or information contrary to such opinion or statement.

     This letter is limited to the federal laws of the United States of America and the laws of the
State of Illinois. We note that the Credit Agreement and each of the ComEd Notes provides that it
is to be governed by the laws of the Commonwealth of Pennsylvania. We express no opinion as to (i)
Exelon, PECO or Genco or (ii) the enforceability under the laws of the Commonwealth of Pennsylvania
of ComEd’s obligations under the Credit Agreement or the ComEd Notes. With respect to these
matters, we understand you are relying upon the opinion of Ballard Spahr Andrews & Ingersoll LLP,
special counsel to Exelon, PECO and Genco and special Pennsylvania counsel to ComEd.

     This letter is being delivered solely for the benefit of the persons to whom it is addressed;
accordingly, it may not be relied upon by any other person or otherwise circulated or utilized for
any purpose without our written consent, except that Ballard Spahr Andrews & Ingersoll LLP may rely
upon the opinions expressed in paragraphs 1 through 3 (inclusive) in rendering their opinion to you
of even date herewith. This letter may not be quoted or filed with any governmental authority or
other regulatory agency (except to the extent required by law). We assume no obligation to update
or supplement the opinions expressed herein to reflect any facts or circumstances which may
hereafter
come to our attention with respect to such opinions, including any changes in applicable law
which may hereafter occur.

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Very truly yours,

SIDLEY AUSTIN BROWN & WOOD LLP

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EXHIBIT E

FORM OF ANNUAL AND QUARTERLY COMPLIANCE CERTIFICATE

______________________, 20____

     Pursuant to the Three Year Credit Agreement, dated as of October 31, 2003, among Exelon
Corporation (“Exelon”), PECO Energy Company (“PECO”), Exelon Generation Company, LLC (“Genco”),
various financial institutions and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended,
modified or supplemented from time to time, the “Credit Agreement”), the undersigned, being
___of [Exelon] [PECO] [Genco] (the “Borrower”), hereby certifies on behalf of
the Borrower as follows:

     1. Delivered herewith are the financial statements prepared
pursuant to
Section 5.01(b)[(ii)/(iii)] of the Credit Agreement for the fiscal ___ended ___,
20___. All such financial statements comply with the applicable requirements of the Credit
Agreement.

     2. Schedule I hereto sets forth in reasonable detail the information and calculations
necessary to establish the Borrower’s compliance with the provisions of Section 5.02(c) of the
Credit Agreement as of the end of the fiscal period referred to in paragraph 1 above.

     3. (Check one and only one:)

     ___No Event of Default or Unmatured Event of Default has occurred and is continuing.

     ___An Event of Default or Unmatured Event of Default has occurred and is continuing, and the
document(s) attached hereto as Schedule II specify in detail the nature and period of existence of
such Event of Default or Unmatured Event of Default as well as any and all actions with respect
thereto taken or contemplated to be taken by the Borrower.

     4. The undersigned has personally reviewed the Credit Agreement,
and this certificate was based on an examination made by or under the supervision of the
undersigned sufficient to assure that this certificate is accurate.

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     5. Capitalized terms used in this certificate and not otherwise defined shall
have the meanings given in the Credit Agreement.

[EXELON CORPORATION]

[PECO ENERGY COMPANY]

[COMMONWEALTH EDISON COMPANY]

[EXELON GENERATION COMPANY, LLC]

By                                                               

Name:                                                         

Title:                                                           

Date:                                                             

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