Document:

HCR3 AM4 EXH 10.7

EXHIBIT 10.7

THIRD AMENDMENT TO
AGREEMENT OF LIMITED PARTNERSHIP

OF

GRIFFIN-AMERICAN HEALTHCARE REIT III HOLDINGS, LP

This Third Amendment to Agreement of Limited Partnership (the “Amendment”) of GRIFFIN-AMERICAN HEALTHCARE REIT III HOLDINGS, LP (the “Partnership”) is entered into as of the 8th day of November, 2013, by GRIFFIN-AMERICAN HEALTHCARE REIT III, INC., a Maryland corporation (the “General Partner”), as general partner of the Partnership, and GRIFFIN-AMERICAN HEALTHCARE REIT III ADVISOR, LLC, a Delaware limited liability company (hereinafter sometimes referred to as the “Advisor”).

BACKGROUND INFORMATION
WHEREAS, each of the Partners has previously executed that certain Agreement of Limited Partnership of Griffin-American Healthcare REIT III Holdings, LP dated January 11, 2013, as amended by that certain Amendment to Agreement of Limited Partnership of Griffin-American Healthcare REIT III Holdings, LP dated April 9, 2013, and as amended by that certain Second Amendment to Agreement of Limited Partnership of Griffin-American Healthcare REIT III Holdings, LP, dated June 6, 2013 (collectively, the “Partnership Agreement”). The Partners desire to amend the Partnership Agreement as set forth below.
NOW, THEREFORE, in consideration of the mutual covenants contained in this Amendment, and other good and valuable consideration, the parties covenant and agree as follows:

ARTICLE I

CAPITALIZED TERMS
All capitalized terms used in this Amendment, not otherwise defined, have the meaning specified for such terms in the Partnership Agreement.

ARTICLE II

AMENDMENTS
		
	1.
	Capitalized Terms.  All capitalized terms used in this Amendment, not otherwise defined, have the meaning specified for such terms in the Partnership Agreement.

		
	2.
	Amendment to Section 5.1(d).  Section 5.1(d) is hereby deleted and replaced in its entirety with the following:

        

“(d)  Distribution to Advisor Upon Listing. Upon a Listing Event, the Advisor shall no longer be entitled to any distributions of the Advisor Participation in Sales Proceeds under Section 5.1(c).”
		
	3.
	Amendment to Section 5.1(e).  Section 5.1(e) is hereby deleted and replaced in its entirety with the following:

“(e)  Distribution to Advisor Upon Termination. Upon a Termination Event, the Advisor shall no longer be entitled to any distributions of the Advisor Participation in Sales Proceeds under Section 5.1(c).”
4.    Amendment to Section 8.6(l). Section 8.6(l) is hereby deleted and replaced in its entirety with the following:
“(l)    Redemptions by the Advisor Generally. For so long as the Advisor remains the advisor to the Partnership and General Partner under the Advisory Agreement, or in the event the Advisor makes a Deferred Payment Election pursuant to Section 8.6(n), until payment of the Deferred Termination Amount, if any and as applicable, except as otherwise provided in Section 8.6(m) and (n), neither the Advisor nor any Affiliate of the Advisor (other than the General Partner) may redeem any portion of the Partnership Units held by such Person. 
5.    Amendment to Section 8.6(m).  New Section 8.6(m) shall be added as follows:
“(m)    Redemptions by the Advisor Upon Listing. If the Advisor has not been terminated under the Advisory Agreement as of the Listing Date, the Advisor (in its capacity as Partner) shall receive a payment (the “Listing Amount”) in redemption of all of the Partnership Units held by the Advisor, which shall be paid within five (5) Business Days of the determination of the Market Value, in an amount equal to the sum of (x) the Redemption Amount, plus (y) 15% of the amount, if any, by which (I) the Market Value plus the cumulative distributions made to the General Partner from the inception of the Partnership through the Listing Date exceeds (II) the sum of (1) the Invested Capital of the General Partner as of the Listing Date, and (2) the 7% Return that has accrued with respect to the Invested Capital of the General Partner from the inception of the Partnership through the Listing Date. The Listing Amount shall be paid, as determined by the General Partner’s board of directors, including a majority of the independent directors, either in the form of cash or REIT Stock with a Market Value equal to the Listing Amount.  The Advisor agrees to execute such documents as the General Partner may reasonably require in connection with the issuance of REIT Stock if the Listing Amount is paid in the form of REIT Stock as provided herein.”
6.    Amendment to Section 8.6(n).  New Section 8.6(n) shall be added as follows:
“(n)    Redemptions by the Advisor Upon Termination
 (i) If a Listing Event has not occurred as of the date of a Termination Event, then the Advisor (in its capacity as Partner) shall receive a payment (the “Termination Amount”) in redemption of all of the Partnership Units held by the Advisor, which shall be paid within five (5) Business Days of the date of such Termination Event, in an amount equal to the sum of (x) the Redemption Amount, plus (y) 15% of the amount, if any, by which (I) the Appraised Value of all of the Partnership Assets as of the date of the Termination Event, less any 

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indebtedness secured by such assets, plus the cumulative distributions made to the General Partner from the inception of the Partnership through the date of the Termination Event, exceeds (II) the sum of (1) the Invested Capital of the General Partner as of such date, and (2) the 7% Return that has accrued with respect to the Invested Capital of the General Partner from the inception of the Partnership through the date of the Termination Event; provided, however, that upon a Termination Event, the Advisor, in its sole discretion, may elect, within five (5) Business Days of the date of such Termination Event, to forego a payment of the Termination Amount upon such Termination Event and instead elect (“Deferred Payment Election”) to receive a deferred termination amount (the “Deferred Termination Amount”) in redemption of all of the Partnership Units held by the Advisor, which, notwithstanding any other provisions herein to the contrary, shall exclude any new Partnership Assets acquired and/or owned by the General Partner (either directly or through third parties) after such Termination Event, other than the Included Assets (such new Partnership Assets acquired after such Termination Event, other than the Included Assets, the “Separate Asset Value”). The Deferred Termination Amount, if any, shall be paid within five (5) Business Days of the first to occur of (x) a Listing Event or (y) an Other Liquidity Event, in an amount equal to:
          (A) if in connection with a Listing Event, (x) the Redemption Amount, plus (y) 15% of the amount, if any, by which (I) the Appraised Value as of the Listing Date of the Included Assets, less any indebtedness secured by such assets as of the Listing Date, plus the cumulative distributions made to the General Partner and to any Limited Partners (other than the Initial Limited Partner) with respect to Partnership Units issued in connection with the acquisition of the Included Assets from the inception of the Partnership through the Listing Date, exceeds (II) the sum of (1) the Invested Capital of the General Partner as of the Listing Date (excluding Invested Capital relating to the Separate Asset Value), (2) the capital value of any Partnership Units issued in connection with the acquisition of the Included Assets to the Limited Partners (other than the Initial Limited Partner) as valued by the General Partner as of the date of such issuance, and (3) the 7% Return that has accrued with respect to such Invested Capital of the General Partner and that has accrued to any Limited Partners (other than the Initial Limited Partner) with respect to Partnership Units issued in connection with the acquisition of the Included Assets for the period from the inception of the Partnership through the Listing Date; or
          (B) if in connection with an Other Liquidity Event (except in connection with a Merger, which is addressed in Paragraph (C) below), after the Unrecovered Contribution Account and 7% Return Account of the General Partner and similar accounts of each Limited Partner (other than the Initial Limited Partner), in each case as of the date of the Other Liquidity Event, have been reduced to zero ($0), (x) the Redemption Amount, plus (y) 15% of any Net Sales Proceeds received from the Sale of Included Assets; or
          (C) if in connection with an Other Liquidity Event involving a Merger, (x) the Redemption Amount, plus (y) 15% of the amount, if any, by which (I) the gross agreed upon value of the Partnership’s Included Assets pursuant to any agreement effecting such Merger, less any indebtedness secured by such assets as of the date of the Merger, plus the cumulative distributions made to the General Partner and to any Limited Partners (other than the Initial Limited Partner) with respect to Partnership 

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Units issued in connection with the acquisition of the Included Assets from the inception of the Partnership through the date of the Merger, exceeds (II) the sum of (1) the Invested Capital of the General Partner as of the date of the Merger (excluding Invested Capital relating to the Separate Asset Value), (2) the capital value of any Partnership Units issued in connection with the acquisition of the Included Assets to the Limited Partners (other than the Initial Limited Partner) as valued by the General Partner as of the date of such issuance, and (3) the 7% Return that has accrued with respect to such Invested Capital of the General Partner and that has accrued to any Limited Partners (other than the Initial Limited Partner) with respect to Partnership Units issued in connection with the acquisition of the Included Assets for the period from the inception of the Partnership through the date of the Merger; provided that if the Advisor makes a Deferred Payment Election, the Advisor shall not be entitled to receive any other amounts under Section 5.1(c) or (d) following the date of such election.  
(ii) Notwithstanding any other provisions herein to the contrary, the Advisor acknowledges and agrees that: (1) the Advisor has not received and the General Partner has not provided any assurance or representation of any kind relating to the Deferred Termination Amount; (2) the Advisor does not have any expectation of any minimum level of the Deferred Termination Amount; (3) the Advisor shall not have any rights or interests of any kind with respect to the Separate Asset Value; (4) neither the General Partner nor any director, officer, shareholder, partner, member, employee, trustee, representative or agent of the General Partner shall have any liability or responsibility to the Advisor for any act or omission performed or failed to be performed by it, or for any losses, claims, costs, damages, or liabilities arising from any such act or omission relating to the acquisition, management, operation, or disposition of the Partnership Assets; (5) the General Partner shall have full power, authority, discretion and control with respect to the Partnership Assets; (6) the Deferred Termination Amount, if any, is and shall be deemed to be a contingent interest; (7) nothing herein shall in any way limit or restrict the General Partner’s rights to pursue a follow-on offering; and (8) any rights of the Advisor to the Deferred Termination Amount, if any, are personal to the Advisor and, notwithstanding any other provisions herein to the contrary, may not be assigned by the Advisor except to an Affiliate or successor entity. Nothing herein shall limit the Advisor’s (or its Affiliates’) rights to pursue and engage in other offerings in the same or other asset class(es), subject to the Advisory Agreement. The foregoing provisions are of material importance to the General Partner. The Advisor acknowledges and agrees that the General Partner has agreed to payment of the Deferred Termination Amount (subject to the provisions herein), if any, in reliance of the Advisor’s agreement to the foregoing provisions.
              (iii) Any Termination Amount or Deferred Termination Amount, if any and as applicable, shall be paid, as determined by the General Partner’s board of directors, including a majority of the independent directors, either in the form of cash or the issuance to the Advisor of a non-interest-bearing promissory note (the “Termination Note”) in an amount equal to the Termination Amount or the Deferred Termination Amount, as applicable; provided, however, in connection with a Merger, the General Partner shall have the right, at its sole discretion, to pay the Deferred Termination Amount, if any, in the form of REIT Stock prior to such Merger or in the form of the stock of the surviving company traded on a national securities exchange, in connection with such Merger. In the event the Termination Amount or the Deferred Termination Amount, as applicable, is paid in the form of the Termination 

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Note, the Partnership shall repay the Termination Note using Net Sales Proceeds prior to making any distributions under Section 5.1(c) until the Termination Note is paid in full. If the Termination Note has not been paid in full within five (5) years after the date of the issuance of the Termination Note, then the General Partner (as determined by the General Partner’s board of directors, including a majority of the independent directors) shall purchase the Termination Note from the Advisor in exchange for either cash or REIT Stock with a Value equal to the aggregate amount outstanding under the Termination Note. The Advisor agrees to execute such documents as the General Partner may reasonably require in connection with the issuance of REIT Stock if the Termination Note is purchased with REIT Stock as provided herein.
(iv)    For the sake of clarity, no special distribution, compensation or remuneration shall be payable by the Partnership (or the General Partner) to the Advisor or any of its Affiliates in connection with any internalization by the Partnership (or the General Partner) of management functions from the Advisor.” 
ARTICLE III

REAFFIRMATION
In all other respects, the Partnership shall be governed by the terms and conditions of the Partnership Agreement and its Certificate, as amended, all of which are ratified and confirmed.
ARTICLE IV

COUNTERPARTS
This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and all of such counterparts shall constitute one and the same agreement.
[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto, after first being duly sworn, have affixed their hands and seals the day and year first above written.

	
		
	GENERAL PARTNER:

Griffin-American Healthcare REIT III, Inc.,
a Maryland corporation 

By:  /s/ Jeffrey T. Hanson

Name:  Jeffrey T. Hanson
Title:  Chief Executive Officer

	 

	Acknowledged and agreed to by:

	ADVISOR:
Griffin-American Healthcare REIT III Advisor, LLC, a Delaware limited liability company

By:  /s/ Mathieu Streiff

Name:  Mathieu Streiff
Title: Executive Vice President

	 

 

6Exhibit 4.2

 

	 	This Instrument Prepared By:
	 	 
	 	/s/ Jeffrey M. Taylor
	 	Jeffrey M. Taylor
	 	Delmarva Power & Light Company
	 	500 North Wakefield Drive
	 	Mail Stop 92DC42
	 	Newark, DE 19702

	 

 

DELMARVA POWER & LIGHT COMPANY

 

TO

 

THE BANK OF NEW YORK MELLON,

Trustee.

 

 

 

ONE HUNDRED AND TWELFTH SUPPLEMENTAL

INDENTURE

 

 

 

Dated as of November 7, 2013

(but executed on the dates shown on the execution page)

 

	 

 

    	 

    	 

    

 

This ONE HUNDRED AND TWELFTH
SUPPLEMENTAL INDENTURE, dated as of the 7th day of November, 2013 (but executed on the dates hereinafter shown), made and entered
into by and between DELMARVA POWER & LIGHT COMPANY, a corporation of the State of Delaware and the Commonwealth of Virginia,
hereinafter called the “Company,” and THE BANK OF NEW YORK MELLON, a New York banking corporation, hereinafter called
the “Trustee”;

 

WITNESSETH:

 

WHEREAS, the Company heretofore
executed and delivered its Indenture of Mortgage and Deed of Trust (hereinafter in this One Hundredth and Twelfth Supplemental
Indenture called the “Original Indenture”), dated as of October 1, 1943, to The New York Trust Company, a corporation
of the State of New York, as Trustee, to which The Bank of New York Mellon is successor Trustee, to secure the First Mortgage Bonds
of the Company, unlimited in aggregate principal amount and issuable in series, from time to time, in the manner and subject to
the conditions set forth in the Original Indenture granted and conveyed unto the Trustee, upon the trusts, uses and purposes specifically
therein set forth, certain real estate, franchises and other property therein described, including property acquired after the
date thereof, except as therein otherwise provided; and

 

WHEREAS, the Original Indenture
has been supplemented by one hundred and eleven supplemental indentures specifically subjecting to the lien of the Original Indenture
as though included in the granting clause thereof certain property in said supplemental indentures specifically described and amending
and modifying the provisions of the Original Indenture (the Original Indenture, as amended, modified and supplemented by all of
the indentures supplemental thereto, including this One Hundred and Twelfth Supplemental Indenture, is hereinafter in this One
Hundred and Twelfth Supplemental Indenture called the “Indenture”); and

 

WHEREAS, the Original Indenture
provides for the issuance of bonds thereunder in one or more series, the form of each series of bonds and of the coupons to be
attached to any coupon bonds to be substantially in the forms set forth therein with such omissions, variations and insertions
as are authorized or permitted by the Original Indenture and determined and specified by the Board of Directors of the Company;
and

 

WHEREAS, the Company, by appropriate
corporate action in conformity with the terms of the Original Indenture, has duly determined to create a series of bonds to be
designated as First Mortgage Bonds, 3.50% Series due November 15, 2023 (hereinafter sometimes referred to as the “3.50% Series
Bonds” or the “bonds of 3.50% Series”), which said 3.50% Series Bonds are to be substantially in the following
form:

 

[FORM OF FACE OF BOND]

 

This
bond is a Global Bond within the meaning of the Mortgage hereinafter referred to and is registered in the name of a Depositary
or a nominee thereof. This bond may not be transferred to, or registered or exchanged for bonds registered in the name of, any
Person other than the Depositary or a nominee thereof, and no such transfer may be registered, except in the limited circumstances
described in the Mortgage. Every bond authenticated and delivered upon registration of transfer of, or in exchange for or in lieu
of, this bond shall be a Global Bond that is subject to the foregoing, except in such limited circumstances.

 

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DELMARVA POWER & LIGHT COMPANY

 

FIRST MORTGAGE BOND,

 

3.50% SERIES DUE NOVEMBER 15, 2023

 

	Number:	$
	 	CUSIP:247109BS9

 

DELMARVA POWER & LIGHT COMPANY,
a Delaware and Virginia corporation (the “Company”), for value received, hereby promises to pay to Cede & Co.,
or its registered assigns, the sum of                 
Dollars on November 15, 2023, at the office or agency of the Company in the Borough of Manhattan, The City of New York, in such
coin or currency of the United States of America as at the time of payment shall be legal tender for public and private debts,
and to pay interest thereon, semi-annually on May 15 and November 15 of each year at the rate of three and one-half percent (3.50%)
per annum, at said office or agency in like coin or currency, from the fifteenth day of May or November, as the case may be, to
which interest has been paid preceding the date hereof (unless the date hereof is a May 15 or November 15 on which interest has
been paid, in which case from the date hereof, or unless the date hereof is prior to May 15, 2014, in which case from November
15, 2013), until this bond shall mature, according to its terms or on prior redemption or by declaration or otherwise, and at the
highest rate of interest borne by any of the bonds outstanding under the Mortgage hereinafter mentioned from such date of maturity
until this bond shall be paid or the payment hereof shall have been duly provided for. The interest so payable on any May 15 or
November 15 will be paid to the person in whose name this Bond is registered at the close of business on the first calendar day
of the month in which the interest payment date occurs; provided, however, that interest payable at maturity will be paid to the
person to whom principal is paid. In the event that any interest payment date is a legal holiday or a day on which banking institutions
are authorized by law to close, then payment of interest payable on such date may be made on the next succeeding day, not a legal
holiday or a day on which banking institutions are authorized by law to close, with the same force and effect as if made on the
interest payment date. Interest on this bond shall be computed on the basis of a 360-day year consisting of twelve 30-day months.

 

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

 

This bond shall not become
valid or obligatory for any purpose until THE BANK OF NEW YORK MELLON, the Trustee under the Mortgage, or its successor thereunder,
shall have signed the certificate of authentication endorsed hereon.

 

IN WITNESS WHEREOF, DELMARVA
POWER & LIGHT COMPANY has caused this bond to be signed in its name with the manual or facsimile signature of its President
or one of its Vice Presidents and its corporate seal, or a facsimile thereof, to be affixed hereto and attested by the manual or
facsimile signature of its Secretary or one of its Assistant Secretaries.

 

Dated:

 

Seal:

 

	 	 	 	DELMARVA POWER & LIGHT COMPANY
	 	 	 	 
	Attest: 	 	 	By:	 
	 	Secretary	 	 	Senior Vice President

 

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Trustee’s Authentication Certificate

 

This bond is one of the bonds of
the series herein designated, provided for in the within-mentioned mortgage.

 

	 	THE BANK OF NEW YORK MELLON, Trustee
	 	 
	 	By:	 
	 	Authorized Officer

 

[FORM OF REVERSE OF
BOND]

 

DELMARVA POWER & LIGHT COMPANY

 

FIRST MORTGAGE BOND,

 

3.50% SERIES DUE NOVEMBER 15, 2023

 

This
bond is one of an issue of bonds of the Company (herein referred to as the “bonds”), not limited in principal amount,
issuable in series, which different series may mature at different times, may bear interest at different rates, and may otherwise
vary as in the Mortgage hereinafter mentioned, and is one of a series known as its First Mortgage Bonds, 3.50% Series due November
15, 2023 (herein sometimes referred to as “bonds of 3.50% Series”). All bonds of all series and tranches issued and
to be issued under and equally and ratably secured (except insofar as any sinking fund, established in accordance with the provisions
of the Mortgage hereinafter mentioned, may afford additional security for the bonds of any particular series or tranche) by the
Mortgage and Deed of Trust, dated as of October 1, 1943, executed by the Company to THE NEW YORK TRUST COMPANY, as Trustee, to
which THE BANK OF NEW YORK MELLON, a New York banking corporation, is successor Trustee (herein, together with any indentures supplemental
thereto, including a One Hundred and Twelfth Supplemental Indenture, dated as of November 7, 2013 (the “One Hundred and Twelfth
Supplemental Indenture”), called the “Mortgage”), to which reference is made for a description of the property
mortgaged and pledged, the nature and extent of the security, the rights and limitations of rights of the holders of the bonds
and of the Company in respect thereof, the rights, duties and immunities of the Trustee, and the terms and conditions upon which
the bonds are, and are to be, issued and secured. The Mortgage contains provisions permitting the Company and the Trustee, with
the consent of the holders of not less than seventy-five percent (75%) in principal amount of all the bonds at the time outstanding
(determined as provided in the Mortgage), evidenced as in the Mortgage provided, or in case the rights under the Mortgage of the
holder of the bonds of one or more, but less than all, of the series of bonds outstanding shall be affected, then with the consent
of the holders of not less than seventy-five percent (75%) in principal amount of the bonds at the time outstanding of the one
or more series, taken in the aggregate, affected (determined as provided in the Mortgage), evidenced as in the Mortgage provided,
to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the
Mortgage or modifying in any manner the rights of the holders of the bonds and coupons; provided, however, that no such supplemental
indenture shall (i) extend the fixed maturity of any bonds, or reduce the rate or extend the time of payment of interest thereon,
or reduce the principal amount thereof, without the consent of the holder of each bond so affected, or (ii) reduce the aforesaid
percentage of bonds, the holders of which are required to consent to any such supplemental indenture without the consent of the
holders of all bonds then outstanding. Any such consent by the registered holder of this bond (unless effectively revoked as provided
in the Mortgage) shall be conclusive and binding upon such holder and upon all future holders of this bond, irrespective of whether
or not any notation of such consent is made upon this bond. No reference herein to the Mortgage and no provision of this bond or
of the Mortgage shall alter or impair the obligation of the Company, which is absolute and

 

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unconditional, to
pay the principal of, premium, if any, and interest on this bond at the time and place, at the rate and in the coin or currency
herein prescribed.

 

The fully registered bonds
of 3.50% Series are issuable in denominations of $1,000 and any integral multiple of $1,000 in excess thereof. At the office or
agency to be maintained by the Company in the Borough of Manhattan, The City of New York and in the manner and subject to the limitations
provided in the Mortgage, fully registered bonds of such series may be exchanged for a like aggregate principal amount of fully
registered bonds of such series of other authorized denominations, and in each case without payment of any service or other similar
charge, but the Company may require payment of a sum sufficient to cover any tax or taxes or other governmental charges required
to be paid by the Company in relation thereto, as provided in the One Hundred and Twelfth Supplemental Indenture.

 

The bonds of 3.50% Series shall
be redeemable at the option of the Company prior to the express date of the maturity hereof, in whole or in part, at any time.
The Company shall give notice of its intent to redeem such bonds of 3.50% Series at least 30 days but no more than 90 days prior
to the date fixed for such redemption (the “Redemption Date”). If the Company redeems all or any part of the bonds
of 3.50% Series pursuant to the provisions of this paragraph prior to August 15, 2023, it shall pay an amount equal to the greater
of:

 

(i)          100% of the
principal amount of the bonds of 3.50% Series being redeemed, and

 

(ii)         the sum of
the present values of the remaining scheduled payments of principal of and interest (not including the portion of any scheduled
payment of interest which accrued prior to the Redemption Date) on the bonds of 3.50% Series being redeemed, discounted to the
Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 15
basis points,

 

plus, in each case, accrued interest
on those bonds to the Redemption Date (calculated assuming a 360-day year consisting of twelve 30-day months and for any period
shorter than a full month, on the basis of the actual number of days elapsed in such period). If the Company redeems all or any
part of the bonds of 3.50% Series pursuant to the provisions of this paragraph on or after August 15, 2023, it shall pay an amount
equal to 100% of the principal amount of the bonds of 3.50% Series being redeemed plus accrued and unpaid interest thereon.

 

“Comparable Treasury
Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable
to the remaining term of the bonds of 3.50% Series to be redeemed that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term
of the bonds of 3.50% Series.

 

“Comparable Treasury
Price” means, with respect to any Redemption Date prior to August 15, 2023, (i) the average of the Reference Treasury Dealer
Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than four of such Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Independent Investment
Banker” means an investment banking institution of national standing appointed by the Company that is not the Reference Treasury
Dealer.

 

“Reference Treasury
Dealer” means a primary United States Treasury securities dealer appointed by the Company.

 

“Reference Treasury
Dealer Quotations” means, with respect to any Redemption Date prior to August 15, 2023, the average, as determined by the
Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage
of its principal amount) quoted in writing to the Independent Investment Banker by the Reference Treasury Dealer at 5:00 p.m. on
the third business day preceding such Redemption Date.

 

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“Treasury Rate”
means, with respect to any Redemption Date prior to August 15, 2023, the rate per annum equal to the semi-annual equivalent yield
to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of
its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

 

The Company shall deliver
to the Trustee before any Redemption Date for the bonds of 3.50% Series its calculation of the amount applicable to such redemption.
The Trustee shall be under no duty to inquire into, may presume the correctness of, and shall be fully protected in acting upon,
the Company’s calculation of any Redemption Price of the bonds of 3.50% Series.

 

In lieu of stating the amount
applicable to such redemption, notices of redemption of the bonds of 3.50% Series for a Redemption Date prior to August 15, 2023
shall state substantially the following: “The amount applicable to the bonds of 3.50% Series to be redeemed shall equal the
sum of (a) the greater of (i) 100% of the principal amount of such bonds of 3.50% Series, and (ii) the sum of the present values
of the remaining scheduled payments of principal and interest (not including the portion of any scheduled payment of interest which
accrued prior to the Redemption Date) on the bonds of 3.50% Series being redeemed, discounted to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the bonds of 3.50% Series)
plus 15 basis points, plus, in each case, (b) accrued interest on the principal amount hereof to the Redemption Date.”

 

If at the time notice of redemption
is given the redemption moneys are not on deposit with the Trustee, then the redemption shall be subject to the receipt of such
moneys on or before the Redemption Date, and such notice shall be of no effect unless such moneys are received. The Mortgage provides
that if the Company shall deposit with the Trustee in trust for the purpose funds sufficient to pay the principal of all of the
bonds of any series, or such of the bonds of any series as have been or are to be called for redemption, and premium, if any, thereon,
and all interest payable on such bonds to the date on which they become due and payable at maturity or upon redemption or otherwise,
and shall comply with the other provisions of the Mortgage in respect thereof, then from the date of such deposit such bonds shall
no longer be entitled to any lien or benefit under the Mortgage.

 

The principal hereof may be declared
or may become due prior to the express date of the maturity hereof on the conditions, in the manner and at the time set forth in
the Mortgage, upon the occurrence of a completed default as in the Mortgage provided.

 

This bond is transferable
as prescribed in the Mortgage by the registered holder hereof in person, or by his or her duly authorized attorney, at the office
or agency to be maintained by the Company in the Borough of Manhattan, The City of New York, upon surrender and cancellation of
this bond, and thereupon a new fully registered bond or bonds of authorized denominations of the same series and for the same aggregate
principal amount will be issued to the transferee in exchange herefor as provided in the Mortgage, and in each case without payment
of any service or other similar charge as provided in the One Hundred and Twelfth Supplemental Indenture. The Company and the Trustee,
any paying agent and any bond registrar may deem and treat the person in whose name this bond is registered as the absolute owner
hereof, whether or not this bond shall be overdue, for the purpose of receiving payment and for all other purposes and neither
the Company nor the Trustee nor any paying agent nor any bond registrar shall be affected by any notice to the contrary.

 

No recourse shall be had for
the payment of the principal of, premium, if any, and interest on, this bond, or for any claim based hereon, or otherwise in respect
hereof, or based on, or in respect of, the Mortgage, against an incorporator or any past, present or future subscriber to the capital
stock, stockholder, officer or director, as such, of the Company or of any successor corporation, either directly or through the
Company or any successor corporation, under any rule of law, statute or constitution or by the enforcement of any assessment or
otherwise, all such liability of incorporators, subscribers, stockholders, officers and directors, as such, being waived and released
by the holder and owner hereof by the acceptance of this bond and being likewise waived and released by the terms of the Mortgage.

 

[END OF FORM OF BOND]

 

    	6

    	 

    

 

WHEREAS, all acts and things prescribed
by law and by the charter and by-laws of the Company necessary to make the 3.50% Series Bonds, when executed by the Company and
authenticated by the Trustee, as in the Original Indenture provided, valid, binding and legal obligations of the Company, entitled
in all respects to the security of the Original Indenture and indentures supplemental thereto, have been performed; and

 

WHEREAS, provision is made in Sections
5.11 and 17.01 of the Original Indenture for such further instruments and indentures, supplemental to the Original Indenture, as
may be necessary or proper to carry out more effectually the purposes of the Original Indenture, and to subject to the lien of
the Original Indenture any property acquired after the date of the Original Indenture and intended to be covered thereby, with
the same force and effect as though included in the granting clause thereof, and to add such further covenants, restrictions or
conditions for the protection of the mortgaged and pledged property and the holders of the bonds as the Board of Directors of the
Company and the Trustee shall consider to be for the protection of the holders of the bonds, and to set forth the terms and provisions
of any series of bonds to be issued under the Original Indenture and the form of the bonds and coupons of such series; and the
Company since the date of the Original Indenture has acquired additional property not heretofore specifically subjected to the
lien of the Original Indenture; and it is desired to add certain further covenants, restrictions and conditions for the protection
of the mortgaged and pledged property and the holders of the bonds, as provided in this One Hundred and Twelfth Supplemental Indenture,
which the Board of Directors of the Company and the Trustee consider to be for the protection of the holders of the bonds; and
the Company desires to issue the 3.50% Series Bonds; and the Company therefore deems it advisable to enter into this One Hundred
and Twelfth Supplemental Indenture in the form and terms hereof; and

 

WHEREAS, the execution and delivery
of this One Hundred and Twelfth Supplemental Indenture has been duly authorized by the Board of Directors of the Company, and all
conditions and requirements necessary to make this One Hundred and Twelfth Supplemental Indenture a valid, binding and legal instrument
in accordance with its terms, for the purposes herein expressed, and the execution and delivery hereof, in the form and terms hereof,
have been in all respects duly authorized;

 

NOW, THEREFORE, in order further
to secure the payment of the principal and interest and premium, if any, of all bonds issued and to be issued under the Original
Indenture and any indentures supplemental thereto, including this One Hundred and Twelfth Supplemental Indenture, according to
their tenor, purport and effect and the performance and observance of all the covenants and conditions in said bonds and the Original
Indenture and any indentures supplemental thereto, including this One Hundred and Twelfth Supplemental Indenture, contained and
to subject to the lien of the Original Indenture, as so supplemented, with the same force and effect as though included in the
granting clause thereof, and in consideration of the premises and of the sum of One Dollar ($1.00), lawful money of the United
States of America, to the Company duly paid by the Trustee at or before the ensealing and delivery hereof, and other valuable consideration,
the receipt whereof is hereby acknowledged, and intending to be legally bound hereby, the Company has executed and delivered this
One Hundred and Twelfth Supplemental Indenture, and has granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged,
pledged, set over and confirmed, and granted a security interest therein, and by these presents does grant, bargain, sell, release,
convey, assign, transfer, mortgage, pledge, set over and confirm, and grant a security interest therein, subject to the provisions
of the Indenture, unto THE BANK OF NEW YORK MELLON, as trustee, and to its successors in trust and to its and their assigns forever,
all the following described properties of the Company, and does hereby confirm that the Company will not cause or consent to a
partition, either voluntary or through legal proceedings, of property, whether herein described or heretofore or hereafter acquired,
in which its ownership shall be as tenants in common, except as permitted by, and in conformity with, the provision of the Original
Indenture, as supplemented, and particularly of Article IX of the Original Indenture:

 

All property, real, personal and
mixed, tangible and intangible, owned by the Company on the date of the execution hereof or which may be hereafter acquired by
it (except such property as in the Original Indenture expressly excepted from the lien and operation of the Indenture).

 

The property covered by this One
Hundred and Twelfth Supplemental Indenture shall include particularly, among other property, without prejudice to the generality
of the language hereinbefore or hereinafter contained, the following described property:

 

    	7

    	 

    

 

All the electric generating stations,
station sites, stations, electric reserve generating stations, substations, substation sites, gas manufacturing plants, ice and
cold storage plants, steam plants, hot water plants, hydro-electric stations, hydro-electric station sites, electric transmission
lines, electric distribution systems, gas transportation mains, gas distribution systems, steam distribution systems, hot water
distribution systems, regulator stations, regulator station sites, office buildings, storeroom buildings, warehouse buildings,
boiler houses, plants, plant sites, service plants, coal storage yards, and poleyards now or hereafter owned by the Company, including
all electric works, power houses, generators, turbines, boilers, engines, furnaces, retorts, dynamos, buildings, structures, transformers,
meters, towers, poles, tower lines, cables, pole lines, tanks, storage holders, regulators, gas works, pipes, pipe lines, mains,
pipe fittings, valves, drips, connections, tunnels, conduits, gates, motors, wires, switch racks, switches, brackets, insulators,
and all equipment, improvements, machinery, appliances, devices, appurtenances, supplies and miscellaneous property for generating,
producing, transforming, converting, storing and distributing electric energy, gas, ice, steam and hot water, and furnishing cold
storage, now or hereafter owned by the Company, together with all furniture and fixtures located in the aforesaid buildings, and
all land now or hereafter owned by the Company on which the same or any part thereof are situated, and all of the real estate,
leases, leaseholds (except the last day of the term of each lease and leasehold), and lands now or hereafter owned by the Company,
including land located on or adjacent to any river, stream or other water, together with all flowage rights, flooding rights, water
rights, riparian rights, dams and dam sites and rights, flumes, canals, races, raceways, head works and diversion works, and all
of the municipal and other franchises, licenses, consents, ordinances, permits, privileges, rights, servitudes, easements and rights-of-way
and other rights in or relating to real estate or the occupancy of the same now or hereafter owned by the Company, and all of the
other property, real, personal or mixed, now or hereafter owned by the Company, forming a part of any of the foregoing property
or used or enjoyed or capable of being used or enjoyed in connection therewith or in any way appertaining thereto, whether developed
or undeveloped, or partially developed, or whether now equipped and operating or not and wherever situated, and all of the Company’s
presently held or hereafter acquired right, title and interest in and to the land on which the same or any part thereof are situated
or adjacent thereto, and all rights for or relating to the construction, maintenance or operation of any of the foregoing property
through, over, under or upon any public streets or highways or other lands, public or private, and (except as hereinafter expressly
excepted) all the right, title and interest of the Company presently held or hereafter acquired in and to all other property of
any kind or nature appertaining to and/or used and/or occupied and/or enjoyed in connection with any property hereinbefore described,
and, as to all of the foregoing, whether now owned by the Company or hereafter acquired by the Company.

 

Together with all and singular
the tenements, hereditaments and appurtenances belonging or in any way appertaining to the aforesaid property or any part thereof,
with the reversion and reversions, remainder and remainders and (subject to the provisions of Section 9.01 of the Original Indenture)
the tolls, rents, revenues, issues, earnings, income, product and profits thereof, and all the estate, right, title and interest
and claim whatsoever, at law as well as in equity, which the Company now has or may hereafter acquire in and to the aforesaid property
and franchises and every part and parcel thereof.

 

IT IS HEREBY AGREED by the Company
that all property, rights and franchises acquired by the Company after the date hereof (except any in the Original Indenture expressly
excepted) shall (subject to the provisions of Section 9.01 of the Original Indenture and to the extent permitted by law) be as
fully embraced within the lien of the Original Indenture and any indentures supplemental thereto, including this One Hundred and
Twelfth Supplemental Indenture, as if such property, rights and franchises were at the time of the execution of the Original Indenture
owned by the Company and/or specifically described therein and conveyed thereby and as if such property, rights and franchises
were now owned by the Company and/or specifically described herein and conveyed hereby;

 

Provided that, in addition to the
reservations and exceptions herein and elsewhere contained, the following are not and are not intended to be granted, bargained,
sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over or confirmed hereunder and are hereby expressly excepted
from the lien and operation of the Original Indenture and any indentures supplemental thereto, including this One Hundred and Twelfth
Supplemental Indenture, viz.: (1) cash and shares of stock and certificates or evidence of interest therein and obligations (including
bonds, notes and other securities) not in or pursuant to the Original Indenture or any indenture supplemental thereto, including
this One Hundred and Twelfth Supplemental Indenture, specifically

 

    	8

    	 

    

 

pledged or deposited or delivered or therein covenanted
so to be; (2) any goods, wares, merchandise, equipment, materials or supplies held or acquired for the purpose of sale or resale
in the usual course of business or for consumption in the operation of any properties of the Company; and (3) all judgments, contracts,
accounts and choses in action, the proceeds of which the Company is not obligated as in the Original Indenture provided to deposit
with the Trustee hereunder; provided, however, that the property and rights expressly excepted from the lien and operation of the
Original Indenture and any indentures supplemental thereto, including this One Hundred and Twelfth Supplemental Indenture, in the
above subdivisions (2) and (3) shall (to the extent permitted by law) cease to be so excepted, in the event that the Trustee or
a receiver or trustee shall take possession of the mortgaged and pledged property in the manner provided in Article X of the Original
Indenture, by reason of the occurrence of a completed default, as defined in said Article X of the Original Indenture.

 

TO HAVE AND TO HOLD all such properties,
real, personal, or mixed, granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over or
confirmed by the Company as aforesaid, or intended so to be, unto the Trustee and its successors in the trusts created in the Indenture
and its and their assigns forever;

 

SUBJECT, HOWEVER, to any reservations,
exceptions, conditions, limitations and restrictions contained in the several deeds, servitudes, franchises and contracts or other
instruments through which the Company acquired, and/or claims title to and/or enjoys the use of the aforesaid properties; and subject
also to encumbrances of the character defined in the Original Indenture as “excepted encumbrances” in so far as the
same may attach to any of the property embraced herein;

 

IN TRUST NEVERTHELESS upon the
terms, trusts, uses and purposes specifically set forth in the Indenture; this One Hundred and Twelfth Supplemental Indenture being
made for the purpose, inter alia, of subjecting the real estate and premises and other property above described to the lien and
operation of the Indenture, so that the same shall be held specifically by the Trustee under and subject to the terms and conditions
of the Original Indenture in identically the same manner and for the same trusts, uses and purposes, as though the said real estate
and premises and other property had been specifically described in the Original Indenture.

 

AND IT IS HEREBY FURTHER COVENANTED
AND AGREED and the Company and the Trustee have mutually agreed, in consideration of the premises, as follows:

 

ARTICLE I.

 

DESIGNATION, PROVISIONS, DENOMINATIONS AND ISSUANCE

OF 3.50% SERIES BONDS

 

SECTION 1. The bonds of 3.50% Series
shall be designated as “First Mortgage Bonds, 3.50% Series due November 15, 2023.” The bonds of 3.50% Series shall
be issuable from time to time as fully registered bonds in denominations of $1,000 and in any integral multiple of $1,000 in excess
thereof. Each of the bonds of 3.50% Series shall be dated the date of issue, and shall bear interest payable from the fifteenth
day of May or November, as the case may be, to which interest has been paid preceding the date thereof, unless such date is a May
15 or November 15 on which interest has been paid, in which case it shall bear interest from such date, or unless such date is
prior to May 15, 2014, in which case it shall bear interest from November 15, 2013. The interest so payable on any May 15 or November
15 will be paid to the person in whose name this Bond is registered at the close of business on the first calendar day of the month
in which the interest payment date occurs. All bonds of 3.50% Series shall be payable on November 15, 2023, in such coin or currency
of the United States of America as at the time of payment shall be legal tender for public and private debts, and shall bear interest,
payable in like coin and currency, at the rate of three and one-half percent (3.50%) per annum, payable semi-annually on May 15
and November 15 of each year, until maturity, and at the highest rate of interest borne by any of the bonds outstanding under the
Original Indenture and any indenture supplemental thereto, from such date of maturity until they shall be paid or payment thereof
shall have been duly provided for; provided, however, that interest payable at maturity

 

    	9

    	 

    

 

will be paid to the person to whom principal is paid.
In the event that any interest payment date is a legal holiday or a day on which banking institutions are authorized by law to
close, then payment of interest payable on such date may be made on the next succeeding day, not a legal holiday or a day on which
banking institutions are authorized by law to close, with the same force and effect as if made on the interest payment date. Interest
on the bonds of 3.50% Series shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The principal
of, and premium, if any, and interest on, each bond of 3.50% Series shall be payable at the office or agency of the Company in
the Borough of Manhattan, The City of New York.

 

The bonds of 3.50% Series may be
exchanged, for a like aggregate principal amount of fully registered bonds of such series of other authorized denominations. No
service or other similar charge shall be made for any exchange, transfer, or registration of the bonds of 3.50% Series, but the
Company may require payment of a sum sufficient to cover any tax or taxes or other governmental charges required to be paid by
the Company in relation thereto.

 

The bonds of 3.50% Series shall
be redeemable as set forth in the form of bond of the bonds of 3.50% Series set forth in this One Hundred and Twelfth Supplemental
Indenture.

 

This bond is transferable
as prescribed in the Mortgage by the registered holder hereof in person, or by his or her duly authorized attorney, at the office
or agency to be maintained by the Company in the Borough of Manhattan, The City of New York, upon surrender and cancellation of
this bond, and thereupon a new fully registered bond or bonds of authorized denominations of the same series and tranche and for
the same aggregate principal amount will be issued to the transferee in exchange herefor as provided in the Mortgage, and in each
case without payment of any service or other similar charge as herein provided. The Company and the Trustee, any paying agent and
any bond registrar may deem and treat the person in whose name this bond is registered as the absolute owner hereof, whether or
not this bond shall be overdue, for the purpose of receiving payment and for all other purposes and neither the Company nor the
Trustee nor any paying agent nor any bond registrar shall be affected by any notice to the contrary.

 

The bonds of 3.50% Series
initially shall be represented by one or more securities in registered, global form without interest coupons (a “Global Bond”).
The Company initially appoints The Depository Trust Company (“DTC”) to act as depositary with respect to the Global
Bonds (together with any successor, the “Depositary”). The bonds of 3.50% Series initially shall be registered in the
name of Cede & Co. as nominee for DTC.

 

So long as the bonds of 3.50%
Series are held by a depositary, such bonds of 3.50% Series shall bear the following legend, in addition to any other legends required
by such depositary:

 

“THIS BOND IS A GLOBAL
BOND WITHIN THE MEANING OF THE MORTGAGE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS BOND MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR BONDS REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE
DEPOSITARY OR A NOMINEE THEREOF, AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE MORTGAGE.
EVERY BOND AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS BOND SHALL BE A
GLOBAL BOND THAT IS SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.”

 

Any bonds of 3.50% Series
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, any Global Bond shall also be
a Global Bond and shall bear the foregoing legend, except for any bond authenticated and delivered in exchange for, or upon registration
of transfer of, a Global Bond pursuant to the next paragraph.

 

Notwithstanding anything herein
to the contrary, a Global Bond shall not be exchangeable for bonds of 3.50% Series registered in the name of, and no transfer of
a Global Bond may be registered to, any person other than the Depositary or its nominee, unless (i) such Depositary (A) notifies
the Company that it is unwilling or unable to continue as Depositary for the bonds of 3.50% Series or (B) ceases to be a “clearing
agency” registered

 

    	10

    	 

    

 

under the Securities Exchange Act
of 1934, as amended, and the Company within 90 days after it receives such notice or becomes aware of such ineligibility does not
appoint a successor Depositary, (ii) the Company executes and delivers to the Trustee a notice that the bonds of 3.50% Series shall
be so exchangeable and the transfer thereof so registerable, or (iii) there shall have occurred a completed default as in the Mortgage
provided with respect to the bonds of 3.50% Series evidenced by such Global Bond. Upon the occurrence in respect of the bonds of
3.50% Series of (1) any one or more of the conditions specified in clause (i) of the preceding sentence, the bonds of 3.50% Series
shall be exchanged, and (2) any one or more of the conditions specified in clause (ii) or (iii) of the preceding sentence, the
bonds of 3.50% Series shall be exchangeable, for bonds registered in the names of, and the transfer of such bond shall be registered
to, the beneficial owners of the bonds of the bonds of 3.50% Series, or their designees, as the Depositary shall direct. The bonds
of 3.50% Series issued to beneficial owners, or their designees shall be substantially in the form set forth in the One Hundred
and Twelfth Supplemental Indenture, but shall not include the provision related to the Global Bonds.

 

The Company and the Trustee
may rely conclusively upon (a) a certificate of the Depository as to the identity of a participant in the book-entry system; (b)
a certificate of any participant as to the identity of any indirect participant and (c) a certificate of any participant or any
indirect participant as to the identity of, and the respective principal amount of bonds of 3.50% Series owned by, beneficial owners.

 

SECTION 2. The principal amount
of the bonds of 3.50% Series that may be authenticated and delivered hereunder is not limited, except as the Indenture limits the
principal amount of bonds that may be issued thereunder.

 

SECTION 3. Bonds of 3.50% Series
for the aggregate principal amount of Three Hundred Million Dollars ($300,000,000), being the initial issuance of bonds of 3.50%
Series, shall forthwith be executed by the Company and delivered to the Trustee and shall be authenticated by the Trustee and delivered,
after the recording hereof, in accordance with the request of the Company, signed in the name of the Company by its President or
one of its Vice Presidents and its Treasurer or one of its Assistant Treasurers, upon compliance by the Company with the applicable
provisions of Articles III and IV of the Indenture.

 

ARTICLE II.

 

MISCELLANEOUS

 

SECTION 1. As supplemented and
amended by this One Hundred and Twelfth Supplemental Indenture, the Original Indenture and all indentures supplemental thereto
are in all respects ratified and confirmed and the Original Indenture and the aforesaid supplemental indentures and this One Hundred
and Twelfth Supplemental Indenture shall be read, taken and construed as one and the same instrument.

 

SECTION 2. This One Hundred and
Twelfth Supplemental Indenture shall be simultaneously executed in several counterparts, and all such counterparts executed and
delivered, each as an original, shall constitute but one and the same instrument.

 

SECTION 3. The recitals of fact
contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness
of the same.

 

SECTION 4. The debtor and its mailing
address are Delmarva Power & Light Company, Mailstop 92DC42, 500 N. Wakefield Drive, Newark, Delaware 19702. The secured party
and its address, from which information concerning the security interest hereunder may be obtained, are The Bank of New York Mellon,
Global Corporate Trust, 525 William Penn Place, 38th Floor, Pittsburgh, Pennsylvania 15259, Attn: Ms. Leslie Lockhart, Corporate
Trust Officer.

 

SECTION 5. The Company acknowledges
that it received a true and correct copy of this One Hundred and Twelfth Supplemental Indenture.

 

    	11

    	 

    

 

(SIGNATURE PAGES FOLLOW)

 

    	12

    	 

    

 

IN WITNESS WHEREOF, the Company
has caused this instrument to be signed in its name and behalf by its Senior Vice President, and its corporate seal to be hereunto
affixed and attested by its Secretary and the Trustee has caused this instrument to be signed in its name and behalf by a Vice
President and its corporate seal to be hereunto affixed and attested by an authorized officer, effective as of the 7th day of November,
2013.

 

	 	 	DELMARVA POWER &
    LIGHT COMPANY
	 	 	 
	Date of Execution	 	By:  	/s/
    Frederick J. Boyle
	 	 	 	FREDERICK J. BOYLE, 
	 	 	 	SENIOR VICE PRESIDENT AND CHIEF 
	 	 	 	FINANCIAL OFFICER

 

November 7, 2013

 

[Seal]

 

	 	Attest: 	/s/ Jane K. Storero
	 	 	JANE K. STORERO,
	 	 	SECRETARY

 

    	13

    	 

    

 

	 	THE BANK OF NEW YORK MELLON,
	 	 	as Trustee
	 	 	 	 
	Date of Execution	 	By:  	/s/ Francine J. Kincaid
	 	 	 	Francine J. Kincaid,
	November 7, 2013  	 	 	VICE PRESIDENT

 

[Seal]

 

	 	Attest: 	/s/ Timothy W. Casey
	 	 	TIMOTHY W. CASEY,
	 	 	VICE PRESIDENT

 

Trustee’s
Signature Page

 

112TH Supplemental
Indenture dated as of November 7, 2013

to the Delmarva
Power & Light Company Mortgage and Deed of Trust

dated as of October
1, 1943

 

    	14

    	 

    

 

DISTRICT OF COLUMBIA: SS.

 

BE IT REMEMBERED that on this 7th
day of November, 2013, personally came before me, a notary public for the District of Columbia, Frederick J. Boyle, Senior Vice
President and Chief Financial Officer of DELMARVA POWER & LIGHT COMPANY, a corporation of the State of Delaware and the Commonwealth
of Virginia (the “Company”), party to the foregoing instrument, known to me personally to be such, and acknowledged
the instrument to be his own act and deed and the act and deed of the Company; that his signature is in his own proper handwriting;
that the seal affixed is the common or corporate seal of the Company; and that his act of signing, sealing, executing and delivering
such instrument was duly authorized by resolution of the Board of Directors of the Company.

 

GIVEN under my hand and official
seal the day and year aforesaid.

 

	 	/s/ Linda J. Epperly
	 	Notary Public, District of Columbia
	 	My commission expires January 1, 2015

 

Certification

 

This document was prepared under
the supervision of an attorney admitted to practice before the Court of Appeals of Maryland, or by or on behalf of one of the parties
named in the within instrument.

 

	 	/s/ Jeffrey M. Taylor
	 	Jeffrey M. Taylor, Esq.

 

    	15

    	 

    

 

DISTRICT OF COLUMBIA: SS.

 

BE IT REMEMBERED that on this 7th
day of November, 2013, personally came before me, a notary public for the District of Columbia, Francine J. Kincaid, Vice President
of THE BANK OF NEW YORK MELLON, a New York banking corporation (the “Trustee”), party to the foregoing instrument,
known to me personally to be such, and acknowledged the instrument to be her own act and deed and the act and deed of the Trustee;
that her signature is her own proper handwriting; that the seal affixed is the common or corporate seal of the Trustee; and that
her act of signing, sealing, executing and delivering said instrument was duly authorized by resolution of the Board of Directors
of the Trustee.

 

GIVEN under my hand and official
seal the day and year aforesaid.

 

	 	/s/ Linda J. Epperly
	 	Notary Public, District of Columbia
	 	My commission expires January 1, 2015

 

    	16

    	 

    

 

CERTIFICATE OF RESIDENCE

 

THE BANK OF NEW YORK MELLON, successor
Trustee to the Trustee within named, hereby certifies that it has a residence at 101 Barclay Street, in the Borough of Manhattan,
in The City of New York, in the State of New York.

 

	 	THE BANK OF NEW YORK MELLON, as Trustee
	 	 
	 	By: 	/s/ Francine J. Kincaid
	 	 	Francine J. Kincaid, Vice President

 

    	17

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