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Exhibit 10.32    
    

 
 

GUARANTY    
    

        THIS GUARANTY ("Guaranty"), dated as of March 31, 2003, is made and given by LECG HOLDING COMPANY, LLC., a limited liability company organized under the
laws of the State of California (the "Guarantor"), in favor of the lenders (the "Banks") from time to time party to the Credit Agreement defined below and U.S. BANK NATIONAL ASSOCIATION, a national
banking association, as administrative agent for the Banks (in such capacity, the "Agent"). 

 
 

RECITALS    
    

        A.    LECG,
LLC (the "Borrower"), the Agent, the Banks and LaSalle Bank National Association, as documentation agent for the Banks have entered into an Amended and Restated
Credit Agreement dated concurrently herewith (as the same may hereafter be amended, restated, or otherwise modified from time to time, the "Credit Agreement") pursuant to which the Agent and the Banks
have agreed to continue certain credit accommodations to the Borrower. 

        B.    The
Borrower, the Guarantor, the Agent and the Banks are parties to a Credit Agreement dated as of September 29, 2000 (as amended, the "Existing Credit
Agreement"). With respect to the Guarantor's obligations thereunder, this Guaranty amends and restated the Existing Credit Agreement in its entirety. 

        C.    It
is a condition precedent to the obligation of the Agent and the Banks to continue credit accommodations pursuant to the terms of the Credit Agreement that this
Guaranty be executed and delivered by the Guarantor. 

        D.    The
Guarantor expects to derive benefits from the continuation of credit accommodations to the Borrower by the Agent and the Banks and finds it advantageous, desirable
and in its their best interests to execute and deliver this Guaranty to the Agent. 

        NOW,
THEREFORE, In consideration of the credit accommodations to be extended to the Borrower and for other good and valuable consideration, the Guarantor hereby covenants and agrees with
the Agent as follows: 

        Section 1.    Defined Terms.    As used in this Guaranty, the following terms shall have the meaning indicated: 

        "Agent" Shall have the meaning indicated in the opening paragraph hereof. 

        "Banks" shall have the meaning indicated in the Credit Agreement. 

        "Borrower" shall have the meaning indicated in Recital A. 

        "Credit Agreement" shall have the meaning indicated in Recital A. 

        "Guarantor" shall have the meaning indicated in the opening paragraph hereof. 

        "Loan Documents" shall have the meaning indicated in the Credit Agreement. 

        "Obligations" shall mean all indebtedness, liabilities and obligations of the Borrower to the Agent or the Banks of every kind, nature or
description under the Credit Agreement, including the Borrower's obligation on any promissory note or notes under the Credit Agreement and any note or notes hereafter issued in substitution or
replacement thereof, in all cases whether due or to become due, and whether now existing or hereafter arising or incurred. 

        "Person" shall mean any individual, corporation, partnership, limited partnership, limited liability company, joint venture, firm,
association, trust, unincorporated organization, government or governmental agency or political subdivision or any other entity, whether acting in an individual, fiduciary or other capacity. 

 

        Section 2.    The Guaranty.    Subject always to the following Section, the Guarantor hereby absolutely and
unconditionally guarantees to the Agent and the Banks the payment when due (whether at a stated maturity or earlier by reason of acceleration or otherwise) and performance of the Obligations. 

        Section 3.    Limitation; Insolvency Laws.    As used in this Section: (a) the term "Applicable
Insolvency Laws" means the laws of the United States of America or of any State, province, nation or other governmental unit relating to bankruptcy, reorganization, arrangement, adjustment of debts,
relief of debtors, dissolution, insolvency, fraudulent transfers or conveyances or other similar laws (including, without limitation, 11 U.S.C. §547, §548, §550 and
other "avoidance" provisions of Title 11 of the United Stated Code) as applicable in any proceeding in which the validity and/or enforceability of this Guaranty or any Specified Lien is in issue; and
(b) "Specified Lien" means any security interest, mortgage, lien or encumbrance securing this Guaranty, in whole or in part. Notwithstanding any other provision of this Guaranty, if, in any
proceeding, a court of competent jurisdiction determines that this Guaranty or any Specified Lien would, but for the operation of this Section, be subject to avoidance and/or recovery or be
unenforceable by reason of Applicable Insolvency Laws, this Guaranty and each such Specified Lien shall be valid and enforceable only to the maximum extent that would not cause this Guaranty or such
Specified Lien to be subject to avoidance, recovery or unenforceability. To the extent that any payment to, or realization by, the Agent and the Banks on the guaranteed Obligations exceeds the
limitations of this Section and is otherwise subject to avoidance and recovery in any such proceeding, the amount subject to avoidance shall in all events be limited to the amount by which such actual
payment or realization exceeds such limitation, and this Guaranty as limited shall in all events remain in full force and effect and be fully enforceable against the Guarantor. This Section is
intended solely to reserve the rights of the Agent and the Banks hereunder against the Guarantor in such proceeding to the maximum extent permitted by Applicable Insolvency Laws and neither the
Guarantor, the Borrower, any other guarantor of the Obligations nor any Person shall have any right, claim or defense under this Section that would not otherwise be available under Applicable
Insolvency Laws in such proceeding. 

        Section 4.    Continuing Guaranty.    This Guaranty is an absolute, unconditional and continuing guaranty of
payment and performance of the Obligations, and the obligations of the Guarantor hereunder shall not be released, in whole or in part, by any action or thing which might, but for this provision of
this Guaranty, be deemed a legal or equitable discharge of a surety or guarantor, other than irrevocable payment and performance in full of the Obligations. No notice of the Obligations to which this
Guaranty may apply, or of any renewal or extension thereof need be given to the Guarantor and none of the foregoing acts shall release the Guarantor from liability hereunder. The Guarantor hereby
expressly waives (a) demand of payment, presentment, protest, notice of dishonor, nonpayment or nonperformance on any and all forms of the Obligations; (b) notice of acceptance of this
Guaranty and notice of any liability to which it may apply; (c) all other notices and demands of any kind and description relating to the Obligations now or hereafter provided for by any
agreement, statute, law, rule or regulation; and (d) any and all defenses of the Borrower pertaining to the Obligations except for the defense of discharge by payment. The Guarantor shall not
be exonerated with respect to the Guarantor's liabilities under this Guaranty by any act or thing except irrevocable payment and performance of the Obligations, it being the purpose and intent of this
Guaranty that the Obligations constitute the direct and primary obligations of the Guarantor and that the covenants, agreements and all obligations of the Guarantor hereunder be absolute,
unconditional and irrevocable. The Guarantor shall be and remain liable for any deficiency remaining after foreclosure of any mortgage, deed of trust or security agreement securing all or any part of
the Obligations, whether or not the liability of the Borrower or any other Person for such deficiency is discharged pursuant to statute, judicial decision or otherwise. The acceptance of this Guaranty
by the Agent is not intended and does not release any liability previously existing of any guarantor or surety of any indebtedness of the Borrower to the Agent and the Banks. 

2

 

        Section 5.    Other Transactions.    The Agent and the Banks are expressly authorized (a) to exchange,
surrender or release with or without consideration any or all collateral and security which may at any time be placed with any of them by the Borrower or by any other Person, or to forward or deliver
any or all such collateral and security directly to the Borrower for collection and remittance or for credit, or to collect the same in any other manner without notice to the Guarantor; and
(b) to amend, modify, extend or supplement the Credit Agreement, any note or other instrument evidencing the Obligations or any part thereof and any other agreement with respect to the
Obligations, waive compliance by the Borrower or any other Person with the respective terms thereof and settle or compromise any of the Obligations without notice to the Guarantor and without in any
manner affecting the absolute liabilities of the Guarantor hereunder. No invalidity, irregularity or unenforceability of all or any part of the Obligations or of any security therefor or other
recourse with respect thereto shall affect, impair or be a defense to this Guaranty. The liabilities of the Guarantor hereunder shall not be affected or impaired by any failure, delay, neglect or
omission on the part of the Agent or the Banks to realize upon any of the Obligations of the Borrower to the Agent or the Banks, or upon any collateral or security for any or all of the Obligations,
nor by the taking by the Agent or any Bank of (or the failure to take) any other guaranty or guaranties to secure the Obligations, nor by the taking by the Agent or any Bank of (or the failure to take
or the failure to perfect its security interest in or other lien on) collateral or security of any kind. No act or omission of the Agent or any Bank, whether or not such action or failure to act
varies or increases the risk of, or affects the rights or remedies of the Guarantor, shall affect or impair the obligations of the Guarantor hereunder. The Guarantor acknowledges that this Guaranty is
in effect and binding without reference to whether this Guaranty is signed by any other Person or Persons, that possession of this Guaranty by the Agent shall be conclusive evidence of due delivery
hereof by the Guarantor and that this Guaranty shall continue in full force and effect, both as
to the Obligations then existing and/or thereafter created, notwithstanding the release of or extension of time to any other guarantor of the Obligations or any part thereof. 

        Section 6.    Actions Not Required.    The Guarantor hereby waives any and all right to cause a marshalling of
the assets of the Borrower or any other action by any court or other governmental body with respect thereto or to cause the Agent or any Bank to proceed against any security for the Obligations or any
other recourse which the Agent or any Bank may have with respect thereto and further waives any and all requirements that the Agent or any Bank institute any action or proceeding at law or in equity,
or obtain any judgment, against the Borrower or any other Person, or with respect to any collateral security for the Obligations, as a condition precedent to making demand on or bringing an action or
obtaining and/or enforcing a judgment against, the Guarantor upon this Guaranty. The Guarantor further acknowledges that time is of the essence with respect to the Guarantor's obligations under this
Guaranty. Any remedy or right hereby granted which shall be found to be unenforceable as to any Person or under any circumstance, for any reason, shall in no way limit or prevent the enforcement of
such remedy or right as to any other Person or circumstance, nor shall such unenforceability limit or prevent enforcement of any other remedy or right hereby granted. 

        Section 7.    Subrogation.    The Guarantor shall not exercise any right of subrogation until such time as all
Obligations shall have been indefeasably paid in full in cash and all commitments to extend credit terminated. In the case of the liquidation, winding-up or bankruptcy of the Borrower
(whether voluntary or involuntary) or in the event that the Borrower shall make an arrangement or composition with its creditors, the Agent and the Banks shall have the right to rank first for their
full claim and to receive all distributions or other payments with respect thereto until their claims have been paid in full, and the Guarantor shall continue to be liable to the Agent and the Banks
for any balance of the Obligations which may be owing to the Agent and/or the Banks by the Borrower. The Guarantor, to the extent permitted by law, irrevocably releases and waives any subrogation
rights or right of contribution or indemnity (whether arising by operation of law, contract or otherwise) it may have against the Borrower if and to the extent any such right or rights would give rise
to a claim under the 

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U.S.
Bankruptcy Code that payments or transfers to the Agent or the Banks with respect to the Obligations constitute a preference in favor of the Guarantor or a claim under the Bankruptcy Code that
any such preference is recoverable from the Agent or the Banks. 

        Section 8    Application of Payments.    Any and all payments upon the Obligations made by the Guarantor or by
any other Person, and/or the proceeds of any or all collateral or security for any of the Obligations, will be applied by the Agent in accordance with the terms of the Credit Agreement. 

        Section 9.    Recovery of Payment.    If any payment received by the Agent or any Bank and applied to the
Obligations is subsequently set aside, recovered, rescinded or required to be returned for any reason (including, without limitation, the bankruptcy, insolvency or reorganization of the Borrower or
any other obligor), the Obligations to which such payment was applied shall for the purposes of this
Guaranty be deemed to have continued in existence, notwithstanding such application, and this Guaranty shall be enforceable as to such Obligations as fully as if such application had never been made.
References in this Guaranty to amounts "irrevocably paid" or to "irrevocable payment" refer to payments that cannot be set aside, recovered, rescinded or required to be returned for any reason. 

        Section 10.    Borrower's Financial Condition.    The Guarantor is familiar with the financial condition of the
Borrower, and the Guarantor has executed and delivered this Guaranty based on the Guarantor's own judgment and not in reliance upon any statement or representation of the Agent or any Bank. Neither
the Agent nor any Bank shall have any obligation to provide the Guarantor with any advice whatsoever or to inform the Guarantor at any time of the Agent's or any Bank's actions, evaluations or
conclusions on the financial condition or any other matter concerning the Borrower. 

        Section 11.    Remedies.    All remedies afforded to the Agent by reason of this Guaranty are separate and
cumulative remedies and it is agreed that no one of such remedies, whether or not exercised by the Agent, shall be deemed to be in exclusion of any of the other remedies available to the Agent and no
one of such remedies shall in any way limit or prejudice any other legal or equitable remedy which the Agent may have hereunder and with respect to the Obligations. Mere delay or failure to act shall
not preclude the exercise or enforcement of any rights and remedies available to the Agent. 

        Section 12.    Bankruptcy of the Borrower.    The Guarantor expressly agrees that the liabilities and
obligations of the Guarantor under this Guaranty shall not in any way be impaired or otherwise affected by the institution by or against the Borrower or any other Person of any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or any other similar proceedings for relief under any bankruptcy law or similar law for the relief of debtors and that any discharge
of any of the Obligations pursuant to any such bankruptcy or similar law or other law shall not diminish, discharge or otherwise affect in any way the obligations of the Guarantor under this Guaranty,
and that upon the institution of any of the above actions, such obligations shall be enforceable against the Guarantor. 

        Section 13.    Costs and Expenses.    The Guarantor will pay or reimburse the Agent on demand for all
out-of-pocket expenses (including in each case all reasonable fees and expenses of counsel) incurred by the Agent arising out of or in connection with the enforcement of this
Guaranty against the Guarantor or arising out of or in connection with any failure of the Guarantor to fully and timely perform the obligations of the Guarantor hereunder. 

        Section 14.    Waivers and Amendments.    This Guaranty can be waived, modified, amended, terminated or
discharged only explicitly in a writing signed by the Agent. A waiver so signed shall be effective only in the specific instance and for the specific purpose given. 

        Section 15.    Notices.    Any notice or other communication to any party in connection with this Guaranty
shall be in writing and shall be sent by manual delivery, telegram, telex, facsimile transmission, overnight courier or United States mail (postage prepaid) addressed to such party at the 

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address
specified on the signature page hereof, or at such other address as such party shall have specified to the other party hereto in writing. All periods of notice shall be measured from the date
of delivery thereof if manually delivered, from the date of sending thereof if sent by telegram, telex or facsimile transmission, from the first business day after the date of sending if sent by
overnight courier, or from four days after the date of mailing if mailed. 

        Section 16.    Guarantor Acknowledgements.    The Guarantor hereby acknowledges that (a) counsel has
advised the Guarantor in the negotiation, execution and delivery of this Guaranty, (b) the Agent and the Banks have no fiduciary relationship to the Guarantor, the relationship being solely
that of debtor and creditor, and (c) no joint venture exists between the Guarantor and the Agent or the Banks. 

        Section 17.    Representations and Warranties.    The Guarantor hereby represents and warrants to the Agent for
the benefit of the Agent and the Banks that it is a limited liability company organized, validly existing and in good standing under the laws of the State of California and has the power and authority
and the legal right to own and operate its properties and to conduct the business in which it is currently engaged. The Guarantor further represents and warrants to the Agent that: 

        17(a)    It
has the power and authority and the legal right to execute and deliver, and to perform its obligations under, this Guaranty and the other Loan Documents to which it
is a party and has taken all necessary action required by its form of organization to authorize such execution, delivery and performance. 

        17(b)    This
Guaranty and the other Loan Documents to which it is a party constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law). 

        17(c)    The
execution, delivery and performance of this Guaranty and the other Loan Documents to which it is a party will not (i) violate any provision of any law,
statute, rule or regulation or any order, writ, judgment, injunction, decree, determination or award of any court, governmental agency or arbitrator presently in effect having applicability to it,
(ii) violate or contravene any provision of its organizational documents, or (iii) result in a breach of or constitute a default under any indenture, loan or credit agreement or any
other agreement, lease or instrument to which it is a party or by which it or any of its properties may be bound or result in the creation of any lien thereunder. It is not in default under or in
violation of any such law, statute, rule or regulation, order, writ, judgment, injunction,
decree, determination or award or any such indenture, loan or credit agreement or other agreement, lease or instrument in any case in which the consequences of such default or violation could have a
material adverse effect on its business, operations, properties, assets or condition (financial or otherwise). 

        17(d)    No
order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by, any governmental or public body or
authority is required on its part to authorize, or is required in connection with the execution, delivery and performance of, or the legality, validity, binding effect or enforceability of, this
Guaranty or the other Loan Documents to which it is a party. 

        17(e)    There
are no actions, suits or proceedings pending or, to its knowledge, threatened against or affecting it or any of its properties before any court or arbitrator, or
any governmental department, board, agency or other instrumentality which, if determined adversely to it, would have a material adverse effect on its business, operations, property or condition
(financial or otherwise) or on its ability to perform its obligations hereunder or under the other Loan Documents to which it is a party. 

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        17(f)    It
expects to derive benefits from the transactions resulting in the continuation of the Obligations. The Agent may rely conclusively on the continuing warranty,
hereby made, that it continues to be benefitted by the Agent's and the Banks' extension of credit accommodations to the Borrower and neither the Agent nor any Bank shall have any duty to inquire into
or confirm the receipt of any such benefits, and this Guaranty shall be effective and enforceable by the Agent without regard to the receipt, nature or value of any such benefits. 

        Section 18.    Continuing Guaranty; Assignments under Credit Agreement.    This Guaranty shall
(a) remain in full force and effect until irrevocable payment in full of the Obligations and the expiration of the obligations, if any, of the Agent and the Banks to extend credit
accommodations to the Borrower, (b) be binding upon the Guarantor, its successors and assigns and (c) inure to the benefit of, and be enforceable by, the Agent and the Banks and their
successors, transferees, and assigns. Without limiting the generality of the foregoing clause (c), the Agent or any Bank may assign or otherwise transfer all or any portion of its rights and
obligations under the Credit Agreement to any other Persons to the extent and in the manner provided in the Credit Agreement and may similarly transfer all or any portion of its rights under this
Guaranty to such Persons. 

        Section 19.    Reaffirmation.    The Guarantor agrees that when so requested by the Agent from time to time it
will promptly execute and deliver to the Agent a written reaffirmation of this Guaranty in such form as the Agent may require. 

        Section 20.    Revocation.    Notwithstanding any other provision hereof, the Guarantor may revoke this
Guaranty prospectively as to future transactions by written notice to that effect actually received by the Agent. No such revocation shall release, impair or affect in any manner any liability
hereunder with respect to Obligations created, contracted, assumed or incurred prior to receipt by the Agent of written notice of revocation, or Obligations created, contracted, assumed or incurred
after receipt of such notice pursuant to any contract entered into by the Agent prior to receipt of such notice, or any renewals or extensions thereof, theretofore or thereafter made, or any interest
accrued or accruing on such Obligations, or all other costs, expenses and attorneys' fees arising from such Obligations. 

        Section 21.    Governing Law and Construction.    THE VALIDITY,
CONSTRUCTION AND ENFORCEABILITY OF THIS GUARANTY SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL
LAWS OF THE UNITED STATES APPLICABLE TO NATIONAL BANKS. Whenever possible, each provision of this Guaranty and any other statement, instrument or transaction contemplated
hereby or relating hereto shall be interpreted in such manner as to be effective and valid under such applicable law, but, if any provision of this Guaranty or any other statement, instrument or
transaction contemplated hereby or relating hereto shall be held to be prohibited or invalid under such applicable law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of this Guaranty or any other statement, instrument or transaction contemplated hereby or relating hereto. 

        Section 22.    Consent to Jurisdiction.    AT THE OPTION OF THE
AGENT, THIS GUARANTY MAY BE ENFORCED IN ANY FEDERAL COURT OR MINNESOTA STATE COURT SITTING IN HENNEPIN COUNTY, MINNESOTA; AND THE GUARANTOR CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND
WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT THE GUARANTOR COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR
INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS GUARANTY, THE AGENT AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-  

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 DESCRIBED, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE. 

        Section 23.    Waiver of Jury Trial.    EACH OF THE GUARANTOR
AND THE AGENT, BY ITS ACCEPTANCE OF THIS GUARANTY, IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

        Section 24.    Counterparts.    This Guaranty may be executed in any number of counterparts, each of which when
so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. 

        Section 25.    General.    All representations and warranties contained in this Guaranty or in any other
agreement between the Guarantor and the Agent shall survive the execution, delivery and performance of this Guaranty and the creation and payment of the Obligations. Captions in this Guaranty are for
reference and convenience only and shall not affect the interpretation or meaning of any provision of this Guaranty. All incorporation by reference of covenants, terms, definitions or other provisions
from other agreements are incorporated into this Guaranty as if such provisions were fully set forth herein, and such incorporation shall include all necessary definitions and related provisions from
such other agreements but including only amendments thereto agreed to by the Agent, and shall survive any termination of such other agreements until the Obligations have been indefeasibly paid in full
and the commitments of the Banks to advance funds to the Borrower have been terminated. 

        Section 26.    Effect of Existing Credit Agreement.    With respect to the Guarantor's obligations and
covenants thereunder, this Guaranty amends and restates the Existing Credit Agreement in its entirety, provided that the obligations of the Guarantor
incurred under the Existing Credit Agreement shall continue under this Guaranty, and shall not in any circumstances be terminated, extinguished or discharged hereby or thereby but shall hereafter be
governed by the terms of this Agreement. 

        Section 27.    Covenants Under Credit Agreement.    Without limiting any other term or provision of this
Guaranty or any of the Borrower's obligations under the Credit Agreement, (a) all of the terms and provisions of the Credit Agreement that are applicable to or referring to the Parent (the
"Subject Provisions") of the Credit Agreement are hereby incorporated by reference into this Guaranty, (b) the Guarantor shall fully and timely perform all covenants applicable to or referring
to the Guarantor under the Subject Provisions, and (c) in its capacity as a "Parent Guarantor" under the Existing Credit Agreement, the Guarantor consents to the execution and delivery of the
Credit Agreement by the parties thereto. 

        Section 28.    Equity Contributions.    Without limiting the generality of Section 27 hereof, within 5
Business Days after the receipt by the Guarantor of Net Cash Proceeds (as defined in the Credit Agreement) from any Prepayment Event (as defined in the Credit Agreement), the Parent will contribute
such proceeds to the Borrower for purposes of enabling the Borrower to make the mandatory prepayments required under Section 2.7(b)(i) of the Credit Agreement. 

[Remainder
of this page intentionally left blank.] 

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        IN WITNESS WHEREOF, the Guarantor has executed this Guaranty as of the date first above written. 

	

 	
 	

GUARANTOR:

LECG HOLDING COMPANY, LLC
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Title:

Address:

2000 Powell Street, Suite 600

Emeryville, CA 94608

Attention: John Burke

with
a copy to: 

LECG

33 West Monroe Street, Suite 1850

Chicago, IL 60603

Attention: Marvin A. Tenenbaum, General Counsel 

Address
for Agent:

U.S. Bank National Association

800 Nicollet Mall—BC-MN-H03Q

Minneapolis, Minnesota 55402

Attention: Robert Rosati 

       

[Signature
Page to the Guaranty] 

S-1

QuickLinks

Exhibit 10.32

GUARANTY

RECITALS<Page>

                                                                     EXHIBIT 4.4

This instrument was prepared by,
and when recorded should be
returned to:

Richard W. Astle
Sidley Austin Brown & Wood
Bank One Plaza
10 South Dearborn Street
Chicago, Illinois 60603

                             SUPPLEMENTAL INDENTURE

                                   ----------

                           Dated as of August 13, 2003

                                   ----------

                           COMMONWEALTH EDISON COMPANY

                                       to

                            BNY MIDWEST TRUST COMPANY

                                       and

                                  D. G. DONOVAN

             Trustees under Mortgage Dated July 1, 1923, and Certain
                         Indentures Supplemental Thereto

                                   ----------

                            Providing for Issuance of

                     FIRST MORTGAGE 4.74% BONDS, SERIES 102
                               DUE AUGUST 15, 2010

<Page>

     THIS SUPPLEMENTAL INDENTURE, dated as of August 13, 2003, between
COMMONWEALTH EDISON COMPANY, a corporation organized and existing under the laws
of the State of Illinois (hereinafter called the "COMPANY") having an address at
10 South Dearborn Street, 37th floor, Chicago, Illinois 60603, party of the
first part, and BNY MIDWEST TRUST COMPANY, a trust company organized and
existing under the laws of the State of Illinois having an address at 2 North
LaSalle Street, Suite 1020, Chicago, Illinois 60602, and D.G. DONOVAN, an
individual having an address at 2 North LaSalle Street, Suite 1020, Chicago,
Illinois 60602, as Trustee and Co-Trustee, respectively, under the Mortgage of
the Company dated July 1, 1923, as amended and supplemented by Supplemental
Indenture dated August 1, 1944 and the subsequent supplemental indentures
hereinafter mentioned, parties of the second part (said Trustee being
hereinafter called the "TRUSTEE", the Trustee and said Co-Trustee being
hereinafter together called the "TRUSTEES", and said Mortgage dated July 1,
1923, as amended and supplemented by said Supplemental Indenture dated August 1,
1944 and subsequent supplemental indentures, being hereinafter called the
"MORTGAGE"),

                              W I T N E S S E T H:

     WHEREAS, the Company duly executed and delivered the Mortgage to provide
for the issue of, and to secure, its bonds, issuable in series and without limit
as to principal amount except as provided in the Mortgage; and

     WHEREAS, the Company from time to time has executed and delivered
supplemental indentures to the Mortgage to provide for (i) the creation of
additional series of bonds secured by the Mortgage, (ii) the amendment of
certain of the terms and provisions of the Mortgage and (iii) the confirmation
of the lien of the Mortgage upon property of the Company, such supplemental
indentures that are currently effective and the respective dates, parties
thereto and purposes thereof, being as follows:

<Table>
<Caption>
    SUPPLEMENTAL
    INDENTURE DATE             PARTIES                                                 PROVIDING FOR
    <S>                        <C>                                                     <C>
    August 1, 1944             Company to Continental Illinois National Bank           Amendment and restatement of
                               and Trust Company of Chicago and Edmond B.              Mortgage dated July 1, 1923
                               Stofft, as Trustee and Co-Trustee

    August 1, 1946             Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Edmond B.
                               Stofft, as Trustee and Co-Trustee

    April 1, 1953              Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Edmond B.
                               Stofft, as Trustee and Co-Trustee
</Table>

                                       -1-
<Page>

<Table>
<Caption>
    SUPPLEMENTAL
    INDENTURE DATE             PARTIES                                                 PROVIDING FOR
    <S>                        <C>                                                     <C>
    March 31, 1967             Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Edward J.
                               Friedrich, as Trustee and Co-Trustee

    April 1, 1967              Company to Continental Illinois National Bank           Amendment of Sections 3.01, 3.02,
                               and Trust Company of Chicago and Edward J.              3.05 and 3.14 of the Mortgage and
                               Friedrich, as Trustee and Co-Trustee                    issuance of First Mortgage 5-3/8%
                                                                                       Bonds, Series Y

    February 28, 1969          Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    May 29, 1970               Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    June 1, 1971               Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    April 1, 1972              Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    May 31, 1972               Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    June 15, 1973              Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    May 31, 1974               Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    June 13, 1975              Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    May 28, 1976               Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    June 3, 1977               Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee
</Table>

                                       -2-
<Page>

<Table>
<Caption>
    SUPPLEMENTAL
    INDENTURE DATE             PARTIES                                                 PROVIDING FOR
    <S>                        <C>                                                     <C>
    May 17, 1978               Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    August 31, 1978            Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    June 18, 1979              Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    June 20, 1980              Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    April 16, 1981             Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    April 30, 1982             Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    April 15, 1983             Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    April 13, 1984             Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    April 15, 1985             Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and Donald W.
                               Alfvin, as Trustee and Co-Trustee

    April 15, 1986             Company to Continental Illinois National Bank           Confirmation of mortgage lien
                               and Trust Company of Chicago and M.J. Kruger,
                               as Trustee and Co-Trustee

    June 15, 1990              Company to Continental Bank, National                   Issuance of First Mortgage 9-7/8%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 75
                               Co-Trustee

    October 1, 1991            Company to Continental Bank, National                   Issuance of First Mortgage 8-1/4%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 76 and First
                               Co-Trustee                                              Mortgage 8-7/8% Bonds, Series 77
</Table>

                                       -3-
<Page>

<Table>
<Caption>
    SUPPLEMENTAL
    INDENTURE DATE             PARTIES                                                 PROVIDING FOR
    <S>                        <C>                                                     <C>
    October 15, 1991           Company to Continental Bank, National                   Issuance of First Mortgage 8-3/8%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 78 and First
                               Co-Trustee                                              Mortgage 9-1/8% Bonds, Series 79

    May 15, 1992               Company to Continental Bank, National                   Issuance of First Mortgage 6-1/8%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 82 and First
                               Co-Trustee                                              Mortgage 8% Bonds, Series 83

    September 15, 1992         Company to Continental Bank, National                   Issuance of First Mortgage 7-3/8%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 85 and First
                               Co-Trustee                                              Mortgage 8-3/8% Bonds, Series 86

    February 1, 1993           Company to Continental Bank, National                   Issuance of First Mortgage 8-3/8%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 88
                               Co-Trustee

    April 1, 1993              Company to Continental Bank, National                   Issuance of First Mortgage 6-1/2%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 90 and First
                               Co-Trustee                                              Mortgage 8% Bonds, Series 91

    April 15, 1993             Company to Continental Bank, National                   Issuance of First Mortgage 7-5/8%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 92
                               Co-Trustee

    June 15, 1993              Company to Continental Bank, National                   Issuance of First Mortgage 7%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 93 and First
                               Co-Trustee                                              Mortgage 7-1/2% Bonds, Series 94

    July 15, 1993              Company to Continental Bank, National                   Issuance of First Mortgage 6-5/8%
                               Association and M.J. Kruger, as Trustee and             Bonds, Series 96 and First
                               Co-Trustee                                              Mortgage 7-3/4% Bonds, Series 97

    January 15, 1994           Company to Continental Bank, National                   Issuance of First Mortgage Bonds,
                               Association and M.J. Kruger, as Trustee and             Pollution Control Series 1994A,
                               Co-Trustee                                              1994B and 1994C

    December 1, 1994           Company to Bank of America Illinois and                 Issuance of First Mortgage Bonds,
                               Robert J. Donahue, as Trustee and Co-Trustee            Pollution Control Series 1994D

    June 1, 1996               Company to Harris Trust and Savings Bank and            Issuance of First Mortgage Bonds,
                               D.G. Donovan, as Trustee and Co-Trustee                 Pollution Control Series 1996A and
                                                                                       1996B

    March 1, 2002              Company to BNY Midwest Trust Company and D.G.           Issuance of unregistered First
                               Donovan, as Trustee and Co-Trustee                      Mortgage 6.15% Bonds, Series 98

    May 20, 2002               Company to BNY Midwest Trust Company and D.G.           Issuance of First Mortgage Bonds,
                               Donovan, as Trustee and Co-Trustee                      Pollution Control Series 2002
</Table>

                                       -4-
<Page>

<Table>
<Caption>
    SUPPLEMENTAL
    INDENTURE DATE             PARTIES                                                 PROVIDING FOR
    <S>                        <C>                                                     <C>
    June 1, 2002               Company to BNY Midwest Trust Company and D.G.           Issuance of additional
                               Donovan, as Trustee and Co-Trustee                      unregistered First Mortgage 6.15%
                                                                                       Bonds, Series 98

    October 7, 2002            Company to BNY Midwest Trust Company and D.G.           Issuance of registered First
                               Donovan, as Trustee and Co-Trustee                      Mortgage 6.15% Bonds, Series 98 in
                                                                                       exchange for unregistered First
                                                                                       Mortgage 6.15% Bonds, Series 98

    January 13, 2003           Company to BNY Midwest Trust Company and D.G.           Issuance of First Mortgage 3.700%
                               Donovan, as Trustee and Co-Trustee                      Bonds, Series 99 and First
                                                                                       Mortgage 5.875% Bonds, Series 100

    March 14, 2003             Company to BNY Midwest Trust Company and D.G.           Issuance of First Mortgage 4.70%
                               Donovan, as Trustee and Co-Trustee                      Bonds, Series 101

    April 23, 2003             Company to BNY Midwest Trust Company and D.G.           Issuance of First Mortgage Bonds,
                               Donovan, as Trustee and Co-Trustee                      Pollution Control Series 2003
</Table>

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

<Table>
<Caption>
                 DESIGNATION                                       MATURITY DATE        PRINCIPAL AMOUNT
   <S>                                                           <C>                    <C>
   First Mortgage 9-7/8% Bonds, Series 75                        June 15, 2020          $     54,171,000

   First Mortgage 8-1/4% Bonds, Series 76                        October 1, 2006             100,000,000

   First Mortgage 8-3/8% Bonds, Series 78                        October 15, 2006            125,000,000

   First Mortgage 8% Bonds, Series 83                            May 15, 2008                140,000,000

   First Mortgage 7-5/8% Bonds, Series 92                        April 15, 2013              218,500,000

   First Mortgage 7% Bonds, Series 93                            July 1, 2005                225,000,000

   First Mortgage 7-1/2% Bonds, Series 94                        July 1, 2013                147,000,000

   First Mortgage 7-3/4% Bonds, Series 97                        July 15, 2023               150,000,000

   First Mortgage 5.3% Bonds, Pollution Control Series 1994A     January 15, 2004             26,000,000

   First Mortgage 5.7% Bonds, Pollution Control Series 1994B     January 15, 2009             20,000,000

   First Mortgage 5.85% Bonds, Pollution Control Series 1994C    January 15, 2014             20,000,000
</Table>

                                       -5-
<Page>

<Table>
<Caption>
                 DESIGNATION                                       MATURITY DATE        PRINCIPAL AMOUNT
   <S>                                                           <C>                    <C>
   First Mortgage 6.75% Bonds, Pollution Control Series 1994D    March 1, 2015                91,000,000

   First Mortgage 4.4% Bonds, Pollution Control Series 1996A     December 1, 2006            110,000,000

   First Mortgage 4.4% Bonds, Pollution Control Series 1996B     December 1, 2006             89,400,000

   First Mortgage 6.15% Bonds, Series 98                         March 15, 2012              600,000,000

   First Mortgage Bonds, Pollution Control Series 2002           April 15, 2013              100,000,000

   First Mortgage 3.700% Bonds, Series 99                        February 1, 2008            350,000,000

   First Mortgage 5.875% Bonds, Series 100                       February 1, 2033            350,000,000

   First Mortgage 4.70% Bonds, Series 101                        April 15, 2015              395,000,000

   First Mortgage Bonds, Pollution Control Series 2003           May 15, 2017                 40,000,000
                                                                                        ----------------
                                                                 Total                  $  3,351,071,000
                                                                                        ================
</Table>

     WHEREAS, the Mortgage provides for the issuance from time to time
thereunder, in series, of bonds of the Company for the purposes and subject to
the limitations therein specified; and

     WHEREAS, the Company desires, by this Supplemental Indenture, to create an
additional series of bonds to be issuable under the Mortgage, such bonds to be
designated "First Mortgage 4.74% Bonds, Series 102" (hereinafter called the
"BONDS OF SERIES 102") and the terms and provisions to be contained in the bonds
of Series 102 or to be otherwise applicable thereto to be as set forth in this
Supplemental Indenture; and

     WHEREAS, the bonds of Series 102 and the Trustee's certificate to be
endorsed thereon shall be substantially in the form of the General Form of
Registered Bond Without Coupons and the form of the General Form of Trustee's
Certificate set forth in Section 3.05 of the Supplemental Indenture dated August
1, 1944 to the Mortgage with such appropriate insertions, omissions and
variations in order to express the designation, date, maturity date, annual
interest rate, record dates for, and dates of, payment of interest,
denominations, terms of redemption and redemption prices, and other terms and
characteristics authorized or permitted by the Mortgage or not inconsistent
therewith; and

     WHEREAS, the Company is legally empowered and has been duly authorized by
the necessary corporate action and by orders of the Illinois Commerce Commission
to make, execute and deliver this Supplemental Indenture, and to create, as an
additional series of bonds of the

                                       -6-
<Page>

Company, the bonds of Series 102, and all acts and things whatsoever necessary
to make this Supplemental Indenture, when executed and delivered by the Company
and the Trustees, a valid, binding and legal instrument, and to make the bonds
of Series 102, when authenticated by the Trustee and issued as in the Mortgage
and in this Supplemental Indenture provided, the valid, binding and legal
obligations of the Company, entitled in all respects to the security of the
Mortgage, as amended and supplemented, have been done and performed;

     NOW, THEREFORE, in consideration of the premises and of the sum of one
dollar duly paid by the Trustees to the Company, and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto
do hereby agree as follows:

     SECTION 1. DESIGNATION AND ISSUANCE OF BONDS OF SERIES 102. The bonds of
Series 102 shall, as hereinbefore recited, be designated as the Company's "First
Mortgage 4.74% Bonds, Series 102." Subject to the provisions of the Mortgage,
the bonds of Series 102 shall be issuable without limitation as to the aggregate
principal amount thereof.

     SECTION 2. FORM, DATE, MATURITY DATE, INTEREST RATE AND INTEREST PAYMENT
DATES OF BONDS OF SERIES 102. (a) The definitive bonds of Series 102 shall be in
engraved, lithographed, printed or typewritten form and shall be registered
bonds without coupons; and such bonds and the Trustee's certificate to be
endorsed thereon shall be substantially in the forms hereinbefore recited,
respectively. The bonds of Series 102 shall be dated as provided in Section 3.01
of the Mortgage, as amended by Supplemental Indenture dated April 1, 1967.

     (b)  The bonds of Series 102 shall mature on August 15, 2010.

     (c)  The bonds of Series 102 shall bear interest at the rate of 4.74% per
annum until the principal thereof shall be paid.

     (d)  Interest on the bonds of Series 102 shall be payable semi-annually on
the fifteenth day of February and the fifteenth day of August in each year,
commencing February 15, 2004. February 1 and August 1 in each year are hereby
established as record dates for the payment of interest payable on the next
succeeding interest payment dates, respectively. The interest on each bond of
Series 102 so payable on any interest payment date shall, subject to the
exceptions provided in Section 3.01 of the Mortgage, as amended by said
Supplemental Indenture dated April 1, 1967, be paid to the person in whose name
such bond is registered at the close of business on the February 1 or August 1,
as the case may be, next preceding such interest payment date.

     SECTION 3. EXECUTION OF BONDS OF SERIES 102. The bonds of Series 102 shall
be executed on behalf of the Company by its President or one of its Vice
Presidents, manually or by facsimile signature, and shall have its corporate
seal affixed thereto or a facsimile of such seal imprinted thereon, attested by
its Secretary or one of its Assistant Secretaries, manually or by facsimile
signature, all as may be provided by resolution of the Board of Directors of the

                                       -7-
<Page>

Company. In case any officer or officers whose signature or signatures, manual
or facsimile, shall appear upon any bond of Series 102 shall cease to be such
officer or officers before such bond shall have been actually authenticated and
delivered, such bond nevertheless may be issued, authenticated and delivered
with the same force and effect as though the person or persons whose signature
or signatures, manual or facsimile, appear thereon had not ceased to be such
officer or officers of the Company.

     SECTION 4. MEDIUM AND PLACES OF PAYMENT OF PRINCIPAL OF AND INTEREST ON
BONDS OF SERIES 102; TRANSFERABILITY AND EXCHANGEABILITY. Both the principal of
and interest on the bonds of Series 102 shall be payable in any coin or currency
of the United States of America which at the time of payment is legal tender for
the payment of public and private debts, and both such principal and interest
shall be payable at the office or agency of the Company in the City of Chicago,
State of Illinois, or, at the option of the registered owner, at the office or
agency of the Company in the Borough of Manhattan, The City of New York, State
of New York, and such bonds shall be transferable and exchangeable, in the
manner provided in Sections 3.09 and 3.10 of the Mortgage, at said office or
agency. No charge shall be made by the Company to the registered owner of any
bond of Series 102 for the transfer of such bond or for the exchange thereof for
bonds of other authorized denominations, except, in the case of transfer, a
charge sufficient to reimburse the Company for any stamp or other tax or
governmental charge required to be paid by the Company or the Trustee.

     SECTION 5. DENOMINATIONS AND NUMBERING OF BONDS OF SERIES 102. The bonds of
Series 102 shall be issued in the denomination of $1,000 and in such multiples
of $1,000 as shall from time to time hereafter be determined and authorized by
the Board of Directors of the Company or by any officer or officers of the
Company authorized to make such determination, the authorization of the
denomination of any bond of Series 102 to be conclusively evidenced by the
execution thereof on behalf of the Company. Bonds of Series 102 shall be
numbered R-1 and consecutively upwards.

     SECTION 6. TEMPORARY BONDS OF SERIES 102. Until definitive bonds of Series
102 are ready for delivery, there may be authenticated and issued in lieu of any
thereof and subject to all of the provisions, limitations and conditions set
forth in Section 3.11 of the Mortgage, temporary registered bonds without
coupons of Series 102.

     SECTION 7. REDEMPTION OF BONDS OF SERIES 102. (a) The bonds of Series 102
shall be redeemable, at the option of the Company, as a whole or in part, at any
time upon notice sent by the Company through the mail, postage prepaid, at least
thirty (30) days and not more than forty-five (45) days prior to the date fixed
for redemption, to the registered holder of each bond to be redeemed in whole or
in part, addressed to such holder at his address appearing upon the registration
books, at a redemption price equal to the greater of

          (1)    100% of the principal amount of the bonds of Series 102 to be
     redeemed, plus accrued interest to the redemption date, or

                                       -8-
<Page>

          (2)    as determined by the Quotation Agent (as hereinafter defined),
     the sum of the present values of the remaining scheduled payments of
     principal and interest on the bonds of Series 102 to be redeemed (not
     including any portion of payments of interest accrued as of the redemption
     date) discounted to the redemption date on a semi-annual basis (assuming a
     360-day year consisting of twelve 30-day months) at the Adjusted Treasury
     Rate (as hereinafter defined) plus fifteen (15) basis points, plus accrued
     interest to the redemption date.

Unless the Company defaults in payment of the redemption price, on and after the
redemption date, interest will cease to accrue on the bonds of Series 102 or
portions of the bonds of Series 102 called for redemption.

     (b)  For purposes of the foregoing Section 7(a), the following terms shall
have the respective meanings set forth below:

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

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

          "COMPARABLE TREASURY ISSUE" means the United States Treasury security
     selected by the Quotation Agent as having a maturity comparable to the
     remaining term of the bonds of Series 102 that would be used, at the time
     of selection and in accordance with customary financial practice, in
     pricing new issues of corporate debt securities of comparable maturity to
     the remaining term of the bonds of Series 102.

          "COMPARABLE TREASURY PRICE" means, with respect to any redemption
     date:

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

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

          "QUOTATION AGENT" means the Reference Treasury Dealer appointed by the
     Company.

          "REFERENCE TREASURY DEALER" means (1) each of Banc One Capital
     Markets, Inc., J.P. Morgan Securities Inc. and Wachovia Capital Markets,
     LLC and their respective successors, unless any of them ceases to be a
     primary U.S. Government securities dealer

                                       -9-
<Page>

     in New York City (a "PRIMARY TREASURY DEALER"), in which case the Company
     shall substitute another Primary Treasury Dealer; and (2) any other Primary
     Treasury Dealer selected by the Company.

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

     (c)  In case the Company shall desire to exercise such right to redeem and
pay off all or any part of such bonds of Series 102 as hereinbefore provided, it
shall comply with all the terms and provisions of Article V of the Mortgage
applicable thereto, and such redemption shall be made under and subject to the
terms and provisions of Article V and in the manner and with the effect therein
provided, but at the time or times and upon mailing of notice, all as
hereinbefore set forth in this Section 7. No publication of notice of any
redemption of any bonds of Series 102 shall be required under Section 5.03(a) of
the Mortgage.

     SECTION 8. BOOK-ENTRY ONLY SYSTEM. It is intended that the bonds of Series
102 be registered so as to participate in the securities depository system (the
"DTC SYSTEM") with The Depository Trust Company ("DTC"), as set forth herein.
The bonds of Series 102 shall be initially issued in the form of a fully
registered bond or bonds in the name of Cede & Co., or any successor thereto, as
nominee for DTC. The Company and the Trustees are authorized to execute and
deliver such letters to or agreements with DTC as shall be necessary to
effectuate the DTC System, including the Letter of Representations from the
Company and the Trustees to DTC relating to the bonds of Series 102 (the
"REPRESENTATION LETTER"). In the event of any conflict between the terms of the
Representation Letter and the Mortgage, the terms of the Mortgage shall control.
DTC may exercise the rights of a bondholder only in accordance with the terms
hereof applicable to the exercise of such rights.

     With respect to bonds of Series 102 registered in the name of DTC or its
nominee, the Company and the Trustees shall have no responsibility or obligation
to any broker-dealer, bank or other financial institution for which DTC holds
such bonds from time to time as securities depository (each such broker-dealer,
bank or other financial institution being referred to herein as a "DEPOSITORY
PARTICIPANT") or to any person on behalf of whom such a Depository Participant
holds an interest in such bonds (each such person being herein referred to as an
"INDIRECT PARTICIPANT"). Without limiting the immediately preceding sentence,
the Company and the Trustees shall have no responsibility or obligation with
respect to:

          (i)    the accuracy of the records of DTC, its nominee or any
     Depository Participant with respect to any ownership interest in the bonds
     of Series 102,

                                      -10-
<Page>

          (ii)   the delivery to any Depository Participant or any Indirect
     Participant or any other person, other than a registered owner of a bond of
     Series 102, of any notice with respect to the bonds of Series 102,
     including any notice of redemption,

          (iii)  the payment to any Depository Participant or Indirect
     Participant or any other person, other than a registered owner of a bond of
     Series 102, of any amount with respect to principal of, redemption premium,
     if any, on, or interest on, the bonds of Series 102, or

          (iv)   any consent given by DTC as registered owner.

So long as certificates for the bonds of Series 102 are not issued as
hereinafter provided, the Company and the Trustees may treat DTC or any
successor securities depository as, and deem DTC or any successor securities
depository to be, the absolute owner of such bonds for all purposes whatsoever,
including, without limitation, (1) the payment of principal and interest on such
bonds, (2) giving notice of matters (including redemption) with respect to such
bonds and (3) registering transfers with respect to such bonds. While a bond of
Series 102 is in the DTC System, no person other than DTC or its nominee shall
receive a certificate with respect to such bond.

     In the event that:

          (a)    DTC notifies the Company that it is unwilling or unable to
     continue as depositary or if DTC ceases to be a clearing agency registered
     under applicable law and a successor depositary is not appointed by the
     Company within 90 days,

          (b)    the Company determines that the beneficial owners of the bonds
     of Series 102 should be able to obtain certificated bonds and so notifies
     the Trustees in writing or

          (c)    there shall have occurred and be continuing a completed default
     or any event which after notice or lapse of time or both would be a
     completed default with respect to the bonds of Series 102,

the bonds of Series 102 shall no longer be restricted to being registered in the
name of DTC or its nominee. In the case of clause (a) of the preceding sentence,
the Company may determine that the bonds of Series 102 shall be registered in
the name of and deposited with a successor depository operating a securities
depository system, as may be acceptable to the Company and the Trustees, or such
depository's agent or designee, and if the Company does not appoint a successor
securities depository system within 90 days, then the bonds may be registered in
whatever name or names registered owners of bonds transferring or exchanging
such bonds shall designate, in accordance with the provisions hereof.

                                      -11-
<Page>

     Notwithstanding any other provision of the Mortgage to the contrary, so
long as any bond of Series 102 is registered in the name of DTC or its nominee,
all payments with respect to principal of and interest on such bond and all
notices with respect to such bond shall be made and given, respectively, in the
manner provided in the Representation Letter.

     SECTION 9. LEGENDS. So long as the bonds of Series 102 are held by DTC,
such bonds of Series 102 shall bear the following legend:

          Unless this bond is presented by an authorized representative of the
     Depository Trust Company, a New York corporation ("DTC"), to the Company or
     its agent for registration of transfer, exchange or payment, and any bond
     issued is registered in the name of Cede & Co. or in such other name as is
     requested by an authorized representative of DTC (and any payment is made
     to Cede & Co. or to such other entity as is requested by an authorized
     representative of DTC), any transfer, pledge or other use hereof for value
     or otherwise by a person is wrongful inasmuch as the registered owner
     hereof, Cede & Co., has an interest herein.

     SECTION 10. CONFIRMATION OF LIEN. The Company, for the equal and
proportionate benefit and security of the holders of all bonds at any time
issued under the Mortgage, hereby confirms the lien of the Mortgage upon, and
hereby grants, bargains, sells, transfers, assigns, pledges, mortgages, warrants
and conveys unto the Trustees, all property of the Company and all property
hereafter acquired by the Company, other than (in each case) property which, by
virtue of any of the provisions of the Mortgage, is excluded from such lien, and
hereby confirms the title of the Trustees (as set forth in the Mortgage) in and
to all such property. Without in any way limiting or restricting the generality
of the foregoing, there is specifically included within the confirmation of lien
and title hereinabove expressed the property of the Company legally described on
EXHIBIT A attached hereto and made a part hereof.

     SECTION 11. MISCELLANEOUS. The terms and conditions of this Supplemental
Indenture shall be deemed to be a part of the terms and conditions of the
Mortgage for any and all purposes. The Mortgage, as supplemented by said
indentures supplemental thereto dated subsequent to August 1, 1944 and referred
to in the recitals of this Supplemental Indenture, and as further supplemented
by this Supplemental Indenture, is in all respects hereby ratified and
confirmed.

     This Supplemental Indenture shall bind and, subject to the provisions of
Article XIV of the Mortgage, inure to the benefit of the respective successors
and assigns of the parties hereto.

     Although this Supplemental Indenture is dated as of August 13, 2003, it
shall be effective only from and after the actual time of its execution and
delivery by the Company and the Trustees on the date indicated by their
respective acknowledgments hereto annexed.

                                      -12-
<Page>

     This Supplemental Indenture may be simultaneously executed in any number of
counterparts, and all such counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument.

                                      -13-
<Page>

          IN WITNESS WHEREOF, Commonwealth Edison Company has caused this
Supplemental Indenture to be executed in its name by its Vice President and
Treasurer, and attested by its Corporate Secretary, and BNY Midwest Trust
Company, as Trustee under the Mortgage, has caused this Supplemental Indenture
to be executed in its name by one of its Vice Presidents, and attested by one of
its Assistant Vice Presidents, and D. G. Donovan, as Co-Trustee under the
Mortgage, has hereunto affixed his signature, all as of the day and year first
above written.

                                          COMMONWEALTH EDISON COMPANY

                                          By   /s/ J. Barry Mitchell
                                               J. Barry Mitchell
                                               VICE PRESIDENT AND TREASURER

ATTEST:

     /s/ Katherine K. Combs
     Katherine K. Combs
     CORPORATE SECRETARY

                                          BNY MIDWEST TRUST COMPANY

                                          By   /s/ J. Bartolini
                                               J. Bartolini
                                               VICE PRESIDENT

ATTEST:

     /s/ C. Potter
     C. Potter
     ASSISTANT VICE PRESIDENT

                                          /s/ D. G. DONOVAN
                                          D. G. DONOVAN

                                      -14-
<Page>

STATE OF ILLINOIS)
                        )SS.
COUNTY OF COOK   )

     I, MARY L. KWILOS, a Notary Public in and for said County, in the State
aforesaid, DO HEREBY CERTIFY that J. Barry Mitchell, Vice President and
Treasurer of Commonwealth Edison Company, an Illinois corporation, one of the
parties described in and which executed the foregoing instrument, and Katherine
K. Combs, Corporate Secretary of said corporation, who are both personally known
to me to be the same persons whose names are subscribed to the foregoing
instrument as such Vice President and Treasurer and Corporate Secretary,
respectively, and who are both personally known to me to be Vice President and
Treasurer and Corporate Secretary, respectively, of said corporation, appeared
before me this day in person and severally acknowledged that they signed,
executed and delivered said instrument as their free and voluntary act as such
Vice President and Treasurer and Corporate Secretary, respectively, of said
corporation, and as the free and voluntary act of said corporation, for the uses
and purposes therein set forth.

     GIVEN under my hand and notarial seal this 14th day of August, A.D. 2003.

                                                /s/ Mary L. Kwilos
                                                Mary L. Kwilos
                                                NOTARY PUBLIC

(NOTARIAL SEAL)

My Commission expires October 26, 2005.

                                      -15-
<Page>

STATE OF ILLINOIS)
                        )SS.
COUNTY OF COOK   )

I, A. HERNANDEZ, a Notary Public in and for said County, in the State aforesaid,
DO HEREBY CERTIFY that J. Bartolini, a Vice President of BNY Midwest Trust
Company, an Illinois trust company, one of the parties described in and which
executed the foregoing instrument, and C. Potter, an Assistant Vice President of
said trust company, who are both personally known to me to be the same persons
whose names are subscribed to the foregoing instrument as such Vice President
and Assistant Vice President, respectively, and who are both personally known to
me to be a Vice President and an Assistant Vice President, respectively, of said
trust company, appeared before me this day in person and severally acknowledged
that they signed, executed and delivered said instrument as their free and
voluntary act as such Vice President and Assistant Vice President, respectively,
of said trust company, and as the free and voluntary act of said trust company,
for the uses and purposes therein set forth.

     GIVEN under my hand and notarial seal this 15th day of August, A.D. 2003.

                                                /s/ A Hernandez
                                                A. Hernandez
                                                NOTARY PUBLIC

(NOTARIAL SEAL)

My Commission expires July 8, 2006.

                                      -16-
<Page>

STATE OF ILLINOIS)
                        )SS.
COUNTY OF COOK   )

I, A. HERNANDEZ, a Notary Public in and for said County, in the State aforesaid,
DO HEREBY CERTIFY that D. G. DONOVAN, one of the parties described in and which
executed the foregoing instrument, who is personally known to me to be the same
person whose name is subscribed to the foregoing instrument, appeared before me
this day in person and acknowledged that he signed, executed and delivered said
instrument as his free and voluntary act for the uses and purposes therein set
forth.

     GIVEN under my hand and notarial seal this 15th day of August, A.D. 2003.

                                                /s/ A. Hernandez
                                                A. Hernandez
                                                NOTARY PUBLIC

(NOTARIAL SEAL)

My Commission expires July 8, 2006.

                                      -17-

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