Document:

exc-20220215ex42

Prepared by, Record, and Return to: Patrick R. Gillard                                                 Ballard Spahr LLP  1735 Market Street, 51st Floor  Philadelphia, PA 19103  Phone (215) 864-8536     DMFIRM #401181491 v5              INDENTURE SUPPLEMENTAL    TO    MORTGAGE AND DEED OF TRUST    (Dated January 15, 1937)    Executed By    ATLANTIC CITY ELECTRIC COMPANY    TO    THE BANK OF NEW YORK MELLON,             Trustee.    _____________________________________      Dated as of February 1, 2022      $25,000,000 FIRST MORTGAGE BONDS, 2.27% SERIES DUE FEBRUARY 15, 2032    $150,000,000 FIRST MORTGAGE BONDS, 3.06% SERIES DUE FEBRUARY 15, 2052 

 

   - i -  TABLE OF CONTENTS*       Page    PARTIES ....................................................................................................................................................................... 1  RECITALS .................................................................................................................................................................... 1  GRANT ......................................................................................................................................................................... 7  DESCRIPTION OF PROPERTY ................................................................................................................................ 12  APPURTENANCES, ETC .......................................................................................................................................... 13  HABENDUM .............................................................................................................................................................. 13  ENCUMBRANCES .................................................................................................................................................... 13  TRUST ........................................................................................................................................................................ 13  SEC. 1. Creation of Bonds of the New Series ............................................................................................................ 13    Date of Maturity .............................................................................................................................. 14    Interest Rate .................................................................................................................................... 14    Redemption ..................................................................................................................................... 14  SEC. 2. Issuance of Bonds of the New Series ............................................................................................................ 15  SEC. 3. Approval of Supplemental Indenture by Board of Public Utilities,   State of New Jersey not to be construed as approval of other acts .................................................. 15  SEC. 4. Supplemental Indenture and Original Indenture to be construed as one instrument ..................................... 15    Limitation on rights of others .......................................................................................................... 16    Trustee assumes no responsibility for correctness of recitals of fact .............................................. 16    Execution in counterparts ................................................................................................................ 16  SEC. 5. Trustee Instructions ....................................................................................................................................... 16        *The Table of Contents shall not be deemed to be any part of the Indenture Supplemental to Mortgage and Deed of  Trust.  

 

  - 1 -    SUPPLEMENTAL INDENTURE, dated as of February 1, 2022 for convenience of reference, and effective  from the time of execution and delivery hereof, made and entered into by and between ATLANTIC CITY  ELECTRIC COMPANY, a corporation of the State of New Jersey (hereinafter sometimes called the “Company”),  party of the first part, and THE BANK OF NEW YORK MELLON (ultimate successor to the Irving Trust  Company), a New York banking corporation, as trustee (hereinafter sometimes called the “Trustee”), party of the  second part.  WHEREAS, the Company has heretofore executed and delivered to the Trustee its Mortgage and Deed of  Trust, dated January 15, 1937 (hereinafter referred to as the “Mortgage”), for the security of all bonds of the  Company outstanding thereunder, and by said Mortgage conveyed to the Trustee, upon certain trusts, terms and  conditions, and with and subject to certain provisos and covenants therein contained, all and singular the property,  rights and franchises which the Company then owned or should thereafter acquire, excepting any property expressly  excepted by the terms of the Mortgage; and  WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture Supplemental  to Mortgage and Deed of Trust, dated as of June 1, 1949, an Indenture Supplemental to Mortgage and Deed of Trust,  dated as of July 1, 1950, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of November 1, 1950,  an Indenture Supplemental to Mortgage and Deed of Trust, dated as of March 1, 1952, an Indenture Supplemental to  Mortgage and Deed of Trust, dated as of January 1, 1953, an Indenture Supplemental to Mortgage and Deed of  Trust, dated as of March 1, 1954, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of March 1,  1955, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of January 1, 1957, an Indenture  Supplemental to Mortgage and Deed of Trust, dated as of April 1, 1958, an Indenture Supplemental to Mortgage and  Deed of Trust, dated as of April 1, 1959, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of  March 1, 1961, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of July 1, 1962, an Indenture  Supplemental to Mortgage and Deed of Trust, dated as of March 1, 1963, an Indenture Supplemental to Mortgage  and Deed of Trust, dated as of February 1, 1966, an Indenture Supplemental to Mortgage and Deed of Trust, dated  as of April 1, 1970, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of September 1, 1970, an  Indenture Supplemental to Mortgage and Deed of Trust, dated as of May 1, 1971, an Indenture Supplemental to  Mortgage and Deed of Trust, dated as of April 1, 1972, an Indenture Supplemental to Mortgage and Deed of Trust,  dated as of June 1, 1973, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of January 1, 1975, an  Indenture Supplemental to Mortgage and Deed of Trust, dated as of May 1, 1975, an Indenture Supplemental to  Mortgage and Deed of Trust, dated as of December 1, 1976, an Indenture Supplemental to Mortgage and Deed of  Trust, dated as of January 1, 1980, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of May 1,  1981, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of November 1, 1983, an Indenture  Supplemental to Mortgage and Deed of Trust, dated as of April 15, 1984, an Indenture Supplemental to Mortgage  and Deed of Trust, dated as of July 15, 1984, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of  October 1, 1985, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of May 1, 1986, an Indenture  Supplemental to Mortgage and Deed of Trust, dated as of July 15, 1987, an Indenture Supplemental to Mortgage and  Deed of Trust, dated as of October 1, 1989, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of  March 1, 1991, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of May 1, 1992, an Indenture  Supplemental to Mortgage and Deed of Trust, dated as of January 1, 1993, an Indenture Supplemental to Mortgage  and Deed of Trust, dated as of August 1, 1993, an Indenture Supplemental to Mortgage and Deed of Trust, dated as  of September 1, 1993, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of November 1, 1993, an  Indenture Supplemental to Mortgage and Deed of Trust, dated as of June 1, 1994, an Indenture Supplemental to  Mortgage and Deed of Trust, dated as of October 1, 1994, an Indenture Supplemental to Mortgage and Deed of  Trust, dated as of November 1, 1994, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of  March 1, 1997, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of April 1, 2004, an Indenture  Supplemental to Mortgage and Deed of Trust, dated as of August 10, 2004, an Indenture Supplemental to Mortgage  and Deed of Trust, dated as of March 8, 2006, an Indenture Supplemental to Mortgage and Deed of Trust, dated as  of November 6, 2008, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of March 29, 2011, an  Indenture Supplemental to Mortgage and Deed of Trust, dated as of August 14, 2014, an Indenture Supplemental to  Mortgage and Deed of Trust, dated as of December 1, 2015, an Indenture Supplemental to Mortgage and Deed of  Trust, dated as of October 9, 2018, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of May 2,  2019, an Indenture Supplemental to Mortgage and Deed of Trust, dated as of May 1, 2020, an Indenture  Supplemental to Mortgage and Deed of Trust, dated as of June 1, 2020, an Indenture Supplemental to Mortgage and  Deed of Trust, dated as of February 15, 2021, and an Indenture Supplemental to Mortgage and Deed of Trust, dated  

 

  - 2 -    as of November 1, 2021, such instruments amending and supplementing the Mortgage in certain respects (the  Mortgage, as so amended and supplemented, being hereinafter called the “Original Indenture”) and conveying to the  Trustee, upon certain trusts, terms and conditions, and with and subject to certain provisos and covenants therein  contained, certain property rights and property therein described; and  WHEREAS, in addition to the property described in the Original Indenture, the Company has acquired  certain property rights and property hereinafter described and has covenanted in Section 42 of the Original Indenture  to execute and deliver such further instruments and do such further acts as may be necessary or proper to make  subject to the lien thereof any property thereafter acquired and intended to be subject to such lien; and  WHEREAS, the Company represents that no default has occurred under any of the provisions of the  Original Indenture; and  WHEREAS, the Original Indenture provides that bonds issued thereunder may be issued in one or more  series and further provides that, with respect to each series, the rate of interest, the date or dates of maturity, the  dates for the payment of interest, the terms and rates of optional redemption, and other terms and conditions shall be  determined by the Board of Directors of the Company prior to the authentication thereof; and  WHEREAS, Section 121 of the Original Indenture provides that any power, privilege or right expressly or  impliedly reserved to or in any way conferred upon the Company by any provision of the Original Indenture,  whether such power, privilege or right is in any way restricted or is unrestricted, may be in whole or in part waived  or surrendered or subjected to any restriction if at the time unrestricted or to additional restriction if already  restricted, and that the Company may enter into any further covenants, limitations or restrictions for the benefit of  any one or more series of bonds issued under the Original Indenture and provide that a breach thereof shall be  equivalent to a default under the Original Indenture, or the Company may cure any ambiguity or correct or  supplement any defective or inconsistent provisions contained in the Original Indenture or in any indenture  supplemental to the Original Indenture, by an instrument in writing, properly executed and acknowledged, and that  the Trustee is authorized to join with the Company in the execution of any such instrument or instruments; and  WHEREAS, the Company has heretofore, from time to time in accordance with the provisions of the  Original Indenture, issued bonds of various series and in various amounts and, of the bonds so issued,  $1,573,150,000 aggregate principal amount is outstanding at the date of this supplemental indenture; and  WHEREAS, the Company, by appropriate corporate action in conformity with the terms of the Original  Indenture, has duly determined to create (i) a series of bonds under the Original Indenture in the aggregate principal  amount of $25,000,000, to be entitled and designated as the First Mortgage Bonds, 2.27% Series due February 15, 2032  (issued February 2022) (herein sometimes referred to as the “Bonds of 2032 Series”); and (ii) a series of bonds under  the Original Indenture in the aggregate principal amount of $150,000,000, to be entitled and designated as the First  Mortgage Bonds, 3.06% Series due February 15, 2052 (herein sometimes referred to as the “Bonds of 2052 Series”);  and  WHEREAS, each of the fully registered bonds of the Bonds of 2032 Series is to be substantially in the  following form, to wit:  THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED, OR THE SECURITIES OR “BLUE SKY” LAWS OF ANY OTHER JURISDICTION, AND MAY  BE TRANSFERRED ONLY IN COMPLIANCE WITH SUCH REGISTRATION REQUIREMENTS OR UNDER  AN EXEMPTION THEREFROM.  No. ______                            $_________  PPN No. ___________  (FORM OF BOND)  (FACE)  ATLANTIC CITY ELECTRIC COMPANY  FIRST MORTGAGE BOND  

 

  - 3 -    2.27% Series due February 15, 2032    ATLANTIC CITY ELECTRIC COMPANY, a corporation of the State of New Jersey (hereinafter called  the “Company”), for value received, hereby promises to pay to ___________, or registered assigns, the principal  sum of __________ Dollars on ____________________, at the office or agency of the Company in the Borough of  Manhattan, The City of New York in lawful money of the United States of America, and to pay interest thereon at  the rate of 2.27 per centum per year in like money, at said office or agency on February 15 and August 15 in each  year, commencing August 15, 2022, until the Company’s obligation with respect to the payment of such principal  shall have been discharged. Interest on this bond will accrue from the date of original issuance of Bonds of 2032  Series (as hereinafter defined) to the first interest payment date, and thereafter will accrue from the last interest  payment date to which interest on the Bonds of 2032 Series has been paid or duly provided for. In the event that any  interest payment date is not a business day, then payment of interest payable on such date will be made on the next  succeeding day which is a business day with the same force and effect as if made on the interest payment date (and  without any interest or other payment in respect of such delay). “Business day” means any day, other than a  Saturday or Sunday, which is not a day on which banking institutions or trust companies in the Borough of  Manhattan, The City of New York are generally authorized or required by law, regulation or executive order to  remain closed. Interest on this bond payable prior to maturity shall be paid by check mailed to the address of the  person or persons entitled thereto, as such address shall appear on the bond registration books maintained by the  trustee or by wire transfer to an account designated by the person entitled thereto.  Subject to certain exceptions provided in the Mortgage referred to on the reverse hereof, the interest  payable on any interest payment date shall be paid to the person in whose name this bond is registered at the close of  business on the fifteenth calendar day of the month preceding the month in which such interest payment date occurs;  provided, however, that interest payable at maturity will be paid to the person to whom principal is paid.  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, by manual or electronic signatures, the  form of authentication certificate endorsed hereon.  Reference is made to the further provisions of this bond set forth on the reverse hereof and such further  provisions shall for all purposes have the same effect as though fully set forth at this place.  IN WITNESS WHEREOF, ATLANTIC CITY ELECTRIC COMPANY has caused this bond to be  executed in its name by the signature or a facsimile thereof of one of its Authorized Officers and attested by the  signature, or a facsimile thereof, of its Secretary or one of its Assistant Secretaries.  Dated,      ATLANTIC CITY ELECTRIC COMPANY            By:  _______________________________                Authorized Officer     Attest:      ______________________________  [Assistant] Secretary    (FORM OF BOND)  (REVERSE)    This bond is one of an issue of bonds of the Company, issuable in series, and is one of a series known as its  “First Mortgage Bonds, 2.27% Series due February 15, 2032 (issued February 2022)” (hereinafter called “Bonds of  2032 Series”), all bonds of all series issued and to be issued under and equally 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) by a Mortgage and Deed of Trust (herein, together with any  

 

  - 4 -    indentures supplemental thereto, called the Mortgage), dated January 15, 1937, executed by the Company to THE  BANK OF NEW YORK MELLON (ultimate successor to the Irving Trust Company), as Trustee, to which  Mortgage reference is made for a description of the property mortgaged and pledged, the nature and extent of the  security, the rights of the holders of the bonds in respect thereof, the duties and immunities of the Trustee, and the  terms and conditions upon which the bonds are secured. With the consent of the Company and to the extent  permitted by and as provided in the Mortgage, the rights and obligations of the Company and/or of the holders of the  bonds and/or coupons and/or the terms and provisions of the Mortgage and/or of any instruments supplemental  thereto may be modified or altered by affirmative vote of the holders of at least seventy-five per centum (75%) in  principal amount of the bonds affected by such modification or alteration then outstanding under the Mortgage  (excluding bonds disqualified from voting by reason of the Company’s interest therein as provided in the Mortgage);  provided that no such modification or alteration shall permit the extension of the maturity of the principal of this  bond or the reduction in the rate of interest hereon or any other modification in the terms of payment of such  principal or interest without the consent of the holder hereof.  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.  In addition to the completed defaults described in the Indenture, an event of default  with respect to the Bonds of 2032 Series will include the additional events of default described in Section 11 of the  Bond Purchase Agreement  between the Company and the initial holders of the Bonds of 2032 Series specified on  Schedule A to the Bond Purchase Agreement relating thereto.  The Trustee shall not be deemed to have actual or  constructive knowledge of any event of default under the Bond Purchase Agreement unless an officer of the Trustee  with direct responsibility for the administration of the Indenture (a “responsible officer”) shall have received written  notice thereof from the Company or from one of the holders of the Bonds of 2032 Series then outstanding that  references the Bonds of 2032 Series and the Indenture.  The Bonds of 2032 Series are issuable only as registered bonds without coupons in denominations of  $100,000 or integral multiples of $1,000 in excess thereof. This bond is transferable as prescribed in the Mortgage  by the registered owner hereof in person, or by his duly authorized attorney, at the office or agency of the Company  in the Borough of Manhattan, The City of New York, upon surrender and cancellation of this bond, and upon  payment, if the Company shall require it, of the transfer charges prescribed in the Mortgage, and thereupon, a new  fully registered bond of the same series for a like principal amount will be issued to the transferee in exchange  herefor as provided in the Mortgage.  The Company and the Trustee may deem and treat the person in whose name this bond is registered as the  absolute owner hereof for the purpose of receiving payment of or on account of principal or (subject to the  provisions of the Mortgage) interest hereon and for all other purposes and the Company and the Trustee shall not be  affected by any notice to the contrary.  In order to enable the Trustee to comply with its obligations under applicable tax laws, rules and  regulations in effect from time to time (“Applicable Law”), the Company shall provide to the Trustee, following  written request from the Trustee, such information concerning the holders of the Bonds of 2032 Series as the Trustee  may reasonably request in order to determine whether the Trustee has any tax-related obligations under Applicable  Law with respect to the payments made to holders of the Bonds of 2032 Series, but only to the extent (a) such  information is in the Company’s possession, (b) such information is not subject to any confidentiality or similar  agreement or undertaking or otherwise deemed by the Company to be confidential and (c) providing such  information to the Trustee does not, in the judgment of the Company, breach or violate or constitute a default under  any applicable laws, rules or regulations or any instrument or agreement to which the Company of any of its  affiliates is a party or may be bound.  The Company, the Trustee or any paying agent for the Bonds of 2032 Series  shall be permitted to make any withholding or deduction from the amount of principal and interest payable to  holders of the Bonds of 2032 Series to the extent required under Applicable Law.  The Bonds of 2032 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; provided that the Company may not redeem less than 5% of the  aggregate principal amount of the Bonds of 2032 Series in the case of any partial redemption. The Company shall  give notice of its intent to redeem such Bonds to the holders of such Bonds of 2032 Series at least 30 days but no  more than 60 days prior to the date fixed for such redemption (the “Redemption Date”).   

 

  - 5 -    Except as otherwise provided in the succeeding paragraph with respect to optional redemption during the  Prepayment Period (as defined herein), if the Company redeems all or any part of the Bonds of 2032 Series pursuant  to the provisions of this paragraph, it shall pay an amount equal to 100% of the principal amount of the Bonds of  2032 Series to be redeemed and a Make-Whole Amount, which shall be calculated as follows:  “Make-Whole Amount” means, as determined by the Company, with respect to any Bonds of 2032 Series,  an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect  to the Called Principal of such Bonds of 2032 Series over the amount of such Called Principal of such Bonds of  2032 Series, provided, that the Make-Whole Amount may in no event be less than zero.  For the purposes of  determining the Make-Whole Amount, the following terms have the following meanings and each of which will be  determined by the Company:  “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in  New York City are required or authorized to be closed.  “Called Principal” means, with respect to any of the Bonds of 2032 Series, the principal of such Bonds of  2032 Series that are to be redeemed or have become or are declared to be immediately due and payable pursuant to  the Mortgage.  “Discounted Value” means, with respect to the Called Principal of any Bond of 2032 Series, the amount  obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their  respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with  accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on  the Bonds of 2032 Series is payable) equal to the Reinvestment Yield with respect to such Called Principal.  “Reinvestment Yield” means, with respect to the Called Principal of any Bonds of 2032 Series, the sum of  (a) 0.50% plus (b) the yield to maturity implied by the “Ask Yield(s)” reported as of 10:00 a.m. (New York City  time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the  display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets  for the most recently issued actively traded on-the-run U.S. Treasury securities (“Reported”) having a maturity equal  to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there are no such U.S.  Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to  maturity will be determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance  with accepted financial practice and (ii) interpolating linearly between the “Ask Yields” Reported for the applicable  most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater  than such Remaining Average Life and (2) closest to and less than such Remaining Average Life.  The  Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable  Bonds of 2032 Series.  If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by  way of interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any Bonds of 2032  Series, the sum of (x) 0.50% plus (y) the yield to maturity implied by the U.S. Treasury constant maturity yields  reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the  Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any  comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining  Average Life of such Called Principal as of such Settlement Date.  If there is no such U.S. Treasury constant  maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by  interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and  greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term  closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of  decimal places as appears in the interest rate of the applicable Bonds of 2032 Series.  “Remaining Average Life” means, with respect to any Called Principal, the number of years obtained by  dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal  component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years,  computed on the basis of a 360-day year comprised of twelve 30-day months and calculated to two decimal places,  

 

  - 6 -    that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of  such Remaining Scheduled Payment.  “Remaining Scheduled Payments” means, with respect to the Called Principal of any Bonds of 2032 Series,  all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect  to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided  that if such Settlement Date is not a date on which interest payments are due to be made under the Bonds of 2032  Series, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest  accrued to such Settlement Date and required to be paid on such Settlement Date.  “Settlement Date” means, with respect to the Called Principal of any Bonds of 2032 Series, the date on  which such Called Principal is to be prepaid or has become or is declared to be immediately due and payable  pursuant to the Mortgage, as the context requires. The Company’s notice of redemption to the holders of Bonds of  2032 Series shall specify such date (which shall be a Business Day), the aggregate principal amount of the Bonds of  2032 Series to be prepaid on such date, the principal amount of each Bonds of 2032 Series held by such holder to be  prepaid (determined in accordance with the next paragraph hereof), and the interest to be paid on the prepayment  date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of the chief  financial officer, principal accounting officer, treasurer, assistant treasurer or comptroller of the Company (each, a  “Senior Financial Officer”) as to the estimated Make-Whole Amount due in connection with such prepayment  (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such  computation.  Two Business Days prior to such prepayment, the Company shall deliver to the Trustee and each  holder of Bonds of 2032 Series a certificate of a Senior Financial Officer specifying the calculation of such Make- Whole Amount as of the specified prepayment date.  Provided that no default or event of default has occurred and is continuing, within ninety days (90) days of  the stated maturity date of the Bonds of 2032 Series (the period from such date to the stated maturity of the Bonds of  2032 Series being referred to herein as the “Prepayment Period”), the Company may, at its option, upon prior  written notice as provided below, prepay all the Bonds of 2032 Series at 100% of the principal amount so prepaid,  together with interest on such principal amount accrued to the date of prepayment and without any Make-Whole  Amount.  In the case of each partial prepayment of the Bonds of 2032 Series, the principal amount of the Bonds of  2032 Series to be prepaid shall be allocated among all of the Bonds of 2032 Series at the time outstanding in  proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for  prepayment.  In the case of each prepayment of Bonds of 2032 Series, the principal amount of each of the Bonds of 2032  Series to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with  interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any.  From and  after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with  the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue.   Any Bonds of 2032 Series paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be  reissued, and no Bonds of 2032 Series shall be issued in lieu of any prepaid principal amount of any Bonds of 2032  Series.  The Company shall deliver to the Trustee before any Redemption Date for the Bonds of 2032 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 2032 Series.  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.  No recourse shall be had for the payment of the principal of or interest on this bond against any  incorporator or any past, present or future subscriber to the capital stock, shareholder, officer or director, as such, of  

 

  - 7 -    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, shareholders, officers and directors, as such, being released by the holder or owner  hereof by the acceptance of this bond and being likewise waived and released by the terms of the Mortgage.  (END OF FORM)  AND WHEREAS each of the Bonds of 2032 Series (whether in temporary or definitive form) is to bear a  certificate of the Trustee substantially in the following form, to wit:  TRUSTEE’S AUTHENTICATION CERTIFICATE    This bond is one of the bonds, of the series herein designated, described in the within-mentioned  Mortgage.  Dated,      THE BANK OF NEW YORK MELLON,    Trustee            By: ________________________________              Authorized Officer    AND WHEREAS, each of the fully registered bonds of the Bonds of 2052 Series is to be substantially in  the following form, to wit:  THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED, OR THE SECURITIES OR “BLUE SKY” LAWS OF ANY OTHER JURISDICTION, AND MAY  BE TRANSFERRED ONLY IN COMPLIANCE WITH SUCH REGISTRATION REQUIREMENTS OR UNDER  AN EXEMPTION THEREFROM.  No. ______                            $_________  PPN No. ___________  (FORM OF BOND)  (FACE)  ATLANTIC CITY ELECTRIC COMPANY  FIRST MORTGAGE BOND  3.06% Series due February 15, 2052    ATLANTIC CITY ELECTRIC COMPANY, a corporation of the State of New Jersey (hereinafter called  the “Company”), for value received, hereby promises to pay to ___________, or registered assigns, the principal  sum of __________ Dollars on ____________________, at the office or agency of the Company in the Borough of  Manhattan, The City of New York in lawful money of the United States of America, and to pay interest thereon at  the rate of 3.06 per centum per year in like money, at said office or agency on February 15 and August 15 in each  year, commencing August 15, 2022, until the Company’s obligation with respect to the payment of such principal  shall have been discharged. Interest on this bond will accrue from the date of original issuance of Bonds of 2052  Series (as hereinafter defined) to the first interest payment date, and thereafter will accrue from the last interest  payment date to which interest on the Bonds of 2052 Series has been paid or duly provided for. In the event that any  interest payment date is not a business day, then payment of interest payable on such date will be made on the next  succeeding day which is a business day with the same force and effect as if made on the interest payment date (and  without any interest or other payment in respect of such delay). “Business day” means any day, other than a  Saturday or Sunday, which is not a day on which banking institutions or trust companies in the Borough of  Manhattan, The City of New York are generally authorized or required by law, regulation or executive order to  remain closed. Interest on this bond payable prior to maturity shall be paid by check mailed to the address of the  person or persons entitled thereto, as such address shall appear on the bond registration books maintained by the  trustee or by wire transfer to an account designated by the person entitled thereto.  

 

  - 8 -    Subject to certain exceptions provided in the Mortgage referred to on the reverse hereof, the interest  payable on any interest payment date shall be paid to the person in whose name this bond is registered at the close of  business on the fifteenth calendar day of the month preceding the month in which such interest payment date occurs;  provided, however, that interest payable at maturity will be paid to the person to whom principal is paid.  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, by manual or electronic signatures, the  form of authentication certificate endorsed hereon.  Reference is made to the further provisions of this bond set forth on the reverse hereof and such further  provisions shall for all purposes have the same effect as though fully set forth at this place.  IN WITNESS WHEREOF, ATLANTIC CITY ELECTRIC COMPANY has caused this bond to be  executed in its name by the signature or a facsimile thereof of one of its Authorized Officers and attested by the  signature, or a facsimile thereof, of its Secretary or one of its Assistant Secretaries.  Dated,      ATLANTIC CITY ELECTRIC COMPANY            By:  _______________________________                Authorized Officer     Attest:      ______________________________  [Assistant] Secretary    (FORM OF BOND)  (REVERSE)    This bond is one of an issue of bonds of the Company, issuable in series, and is one of a series known as its  “First Mortgage Bonds, 3.06% Series due February 15, 2052” (hereinafter called “Bonds of 2052 Series”), all bonds  of all series issued and to be issued under and equally 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) by a Mortgage and Deed of Trust (herein, together with any indentures supplemental  thereto, called the Mortgage), dated January 15, 1937, executed by the Company to THE BANK OF NEW YORK  MELLON (ultimate successor to the Irving Trust Company), as Trustee, to which Mortgage reference is made for a  description of the property mortgaged and pledged, the nature and extent of the security, the rights of the holders of  the bonds in respect thereof, the duties and immunities of the Trustee, and the terms and conditions upon which the  bonds are secured. With the consent of the Company and to the extent permitted by and as provided in the  Mortgage, the rights and obligations of the Company and/or of the holders of the bonds and/or coupons and/or the  terms and provisions of the Mortgage and/or of any instruments supplemental thereto may be modified or altered by  affirmative vote of the holders of at least seventy-five per centum (75%) in principal amount of the bonds affected  by such modification or alteration then outstanding under the Mortgage (excluding bonds disqualified from voting  by reason of the Company’s interest therein as provided in the Mortgage); provided that no such modification or  alteration shall permit the extension of the maturity of the principal of this bond or the reduction in the rate of  interest hereon or any other modification in the terms of payment of such principal or interest without the consent of  the holder hereof.  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.  In addition to the completed defaults described in the Indenture, an event of default  with respect to the Bonds of 2052 Series will include the additional events of default described in Section 11 of the  Bond Purchase Agreement  between the Company and the initial holders of the Bonds of 2052 Series specified on  Schedule A to the Bond Purchase Agreement relating thereto.  The Trustee shall not be deemed to have actual or  

 

  - 9 -    constructive knowledge of any event of default under the Bond Purchase Agreement unless an officer of the Trustee  with direct responsibility for the administration of the Indenture (a “responsible officer”) shall have received written  notice thereof from the Company or from one of the holders of the Bonds of 2052 Series then outstanding that  references the Bonds of 2052 Series and the Indenture.  The Bonds of 2052 Series are issuable only as registered bonds without coupons in denominations of  $100,000 or integral multiples of $1,000 in excess thereof. This bond is transferable as prescribed in the Mortgage  by the registered owner hereof in person, or by his duly authorized attorney, at the office or agency of the Company  in the Borough of Manhattan, The City of New York, upon surrender and cancellation of this bond, and upon  payment, if the Company shall require it, of the transfer charges prescribed in the Mortgage, and thereupon, a new  fully registered bond of the same series for a like principal amount will be issued to the transferee in exchange  herefor as provided in the Mortgage.  The Company and the Trustee may deem and treat the person in whose name this bond is registered as the  absolute owner hereof for the purpose of receiving payment of or on account of principal or (subject to the  provisions of the Mortgage) interest hereon and for all other purposes and the Company and the Trustee shall not be  affected by any notice to the contrary.  In order to enable the Trustee to comply with its obligations under applicable tax laws, rules and  regulations in effect from time to time (“Applicable Law”), the Company shall provide to the Trustee, following  written request from the Trustee, such information concerning the holders of the Bonds of 2052 Series as the Trustee  may reasonably request in order to determine whether the Trustee has any tax-related obligations under Applicable  Law with respect to the payments made to holders of the Bonds of 2052 Series, but only to the extent (a) such  information is in the Company’s possession, (b) such information is not subject to any confidentiality or similar  agreement or undertaking or otherwise deemed by the Company to be confidential and (c) providing such  information to the Trustee does not, in the judgment of the Company, breach or violate or constitute a default under  any applicable laws, rules or regulations or any instrument or agreement to which the Company of any of its  affiliates is a party or may be bound.  The Company, the Trustee or any paying agent for the Bonds of 2052 Series  shall be permitted to make any withholding or deduction from the amount of principal and interest payable to  holders of the Bonds of 2052 Series to the extent required under Applicable Law.  The Bonds of 2052 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; provided that the Company may not redeem less than 5% of the  aggregate principal amount of the Bonds of 2052 Series in the case of any partial redemption. The Company shall  give notice of its intent to redeem such Bonds to the holders of such Bonds of 2052 Series at least 30 days but no  more than 60 days prior to the date fixed for such redemption (the “Redemption Date”).   Except as otherwise provided in the succeeding paragraph with respect to optional redemption during the  Prepayment Period (as defined herein), if the Company redeems all or any part of the Bonds of 2052 Series pursuant  to the provisions of this paragraph, it shall pay an amount equal to 100% of the principal amount of the Bonds of  2052 Series to be redeemed and a Make-Whole Amount, which shall be calculated as follows:  “Make-Whole Amount” means, as determined by the Company, with respect to any Bonds of 2052 Series,  an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect  to the Called Principal of such Bonds of 2052 Series over the amount of such Called Principal of such Bonds of  2052 Series, provided, that the Make-Whole Amount may in no event be less than zero.  For the purposes of  determining the Make-Whole Amount, the following terms have the following meanings and each of which will be  determined by the Company:  “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in  New York City are required or authorized to be closed.  “Called Principal” means, with respect to any of the Bonds of 2052 Series, the principal of such Bonds of  2052 Series that are to be redeemed or have become or are declared to be immediately due and payable pursuant to  the Mortgage.  

 

  - 10 -    “Discounted Value” means, with respect to the Called Principal of any Bond of 2052 Series, the amount  obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their  respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with  accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on  the Bonds of 2052 Series is payable) equal to the Reinvestment Yield with respect to such Called Principal.  “Reinvestment Yield” means, with respect to the Called Principal of any Bonds of 2052 Series, the sum of  (a) 0.50% plus (b) the yield to maturity implied by the “Ask Yield(s)” reported as of 10:00 a.m. (New York City  time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the  display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets  for the most recently issued actively traded on-the-run U.S. Treasury securities (“Reported”) having a maturity equal  to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there are no such U.S.  Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to  maturity will be determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance  with accepted financial practice and (ii) interpolating linearly between the “Ask Yields” Reported for the applicable  most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater  than such Remaining Average Life and (2) closest to and less than such Remaining Average Life.  The  Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable  Bonds of 2052 Series.  If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by  way of interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any Bonds of 2052  Series, the sum of (x) 0.50% plus (y) the yield to maturity implied by the U.S. Treasury constant maturity yields  reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the  Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any  comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining  Average Life of such Called Principal as of such Settlement Date.  If there is no such U.S. Treasury constant  maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by  interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and  greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term  closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of  decimal places as appears in the interest rate of the applicable Bonds of 2052 Series.  “Remaining Average Life” means, with respect to any Called Principal, the number of years obtained by  dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal  component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years,  computed on the basis of a 360-day year comprised of twelve 30-day months and calculated to two decimal places,  that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of  such Remaining Scheduled Payment.  “Remaining Scheduled Payments” means, with respect to the Called Principal of any Bonds of 2052 Series,  all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect  to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided  that if such Settlement Date is not a date on which interest payments are due to be made under the Bonds of 2052  Series, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest  accrued to such Settlement Date and required to be paid on such Settlement Date.  “Settlement Date” means, with respect to the Called Principal of any Bonds of 2052 Series, the date on  which such Called Principal is to be prepaid or has become or is declared to be immediately due and payable  pursuant to the Mortgage, as the context requires. The Company’s notice of redemption to the holders of Bonds of  2052 Series shall specify such date (which shall be a Business Day), the aggregate principal amount of the Bonds of  2052 Series to be prepaid on such date, the principal amount of each Bonds of 2052 Series held by such holder to be  prepaid (determined in accordance with the next paragraph hereof), and the interest to be paid on the prepayment  date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of the chief  financial officer, principal accounting officer, treasurer, assistant treasurer or comptroller of the Company (each, a  “Senior Financial Officer”) as to the estimated Make-Whole Amount due in connection with such prepayment  

 

  - 11 -    (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such  computation.  Two Business Days prior to such prepayment, the Company shall deliver to the Trustee and each  holder of Bonds of 2052 Series a certificate of a Senior Financial Officer specifying the calculation of such Make- Whole Amount as of the specified prepayment date.  Provided that no default or event of default has occurred and is continuing, within one hundred and eighty  days (180) days of the stated maturity date of the Bonds of 2052 Series (the period from such date to the stated  maturity of the Bonds of 2052 Series being referred to herein as the “Prepayment Period”), the Company may, at its  option, upon prior written notice as provided below, prepay all the Bonds of 2052 Series at 100% of the principal  amount so prepaid, together with interest on such principal amount accrued to the date of prepayment and without  any Make-Whole Amount.  In the case of each partial prepayment of the Bonds of 2052 Series, the principal amount of the Bonds of  2052 Series to be prepaid shall be allocated among all of the Bonds of 2052 Series at the time outstanding in  proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for  prepayment.  In the case of each prepayment of Bonds of 2052 Series, the principal amount of each of the Bonds of 2052  Series to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with  interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any.  From and  after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with  the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue.   Any Bonds of 2052 Series paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be  reissued, and no Bonds of 2052 Series shall be issued in lieu of any prepaid principal amount of any Bonds of 2052  Series.  The Company shall deliver to the Trustee before any Redemption Date for the Bonds of 2052 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 2052 Series.  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.  No recourse shall be had for the payment of the principal of or interest on this bond against any  incorporator or any past, present or future subscriber to the capital stock, shareholder, 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, shareholders, officers and directors, as such, being released by the holder or owner  hereof by the acceptance of this bond and being likewise waived and released by the terms of the Mortgage.  (END OF FORM)  AND WHEREAS each of the Bonds of 2052 Series (whether in temporary or definitive form) is to bear a  certificate of the Trustee substantially in the following form, to wit:  TRUSTEE’S AUTHENTICATION CERTIFICATE    This bond is one of the bonds, of the series herein designated, described in the within-mentioned  Mortgage.  Dated,      THE BANK OF NEW YORK MELLON,    Trustee    

 

  - 12 -            By: ________________________________              Authorized Officer    AND WHEREAS, the Company, in the exercise of the powers and authorities conferred upon and reserved  to it under and by virtue of the provisions of the Original Indenture, and pursuant to resolutions of its Board of  Directors, has duly resolved and determined to make, execute and deliver to the Trustee a supplemental indenture, in  the form hereof, for the purposes herein provided; and  WHEREAS, the Company represents that all conditions and requirements necessary to make this  supplemental indenture (hereinafter sometimes referred to as the “2022 Supplemental Indenture”) a valid, binding  and legal instrument in accordance with its terms, have been done, performed and fulfilled, and the execution and  delivery hereof have been in all respects duly authorized;  NOW, THEREFORE, THIS INDENTURE WITNESSETH:  That Atlantic City Electric Company, in consideration of the premises and the sum of One Dollar ($1.00)  and other good and valuable consideration paid to it by the Trustee at or before the delivery of these presents, the  receipt whereof is hereby acknowledged, and in order to secure the payment of both the principal of and interest and  premium, if any, on the bonds from time to time issued under and secured by the Original Indenture and this 2022  Supplemental Indenture, according to their tenor and effect, and the performance of all the provisions of the Original  Indenture and this 2022 Supplemental Indenture (including any further indenture or indentures supplemental to the  Original Indenture and any modification or alteration made as in the Original Indenture provided) and of said bonds,  has granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over and confirmed,  and by these presents doth grant, bargain, sell, release, convey, assign, transfer, mortgage, pledge, set over and  confirm unto The Bank of New York Mellon, as Trustee, and to its successor or successors in said trust, and to it and  its and their assigns forever, all of the following described properties of the Company, that is to say: all property,  real, personal and mixed, tangible and intangible, owned by the Company on the date of the execution hereof and  acquired since the execution and delivery of the Indenture Supplemental to Mortgage and Deed of Trust, dated as of  November 1, 2021 (except such property as is hereinafter expressly excepted from the lien and operation of this  2022 Supplemental Indenture).  The property covered by the lien of the Original Indenture and this 2022 Supplemental Indenture shall  include particularly, among other property, without prejudice to the generality of the language hereinbefore or  hereinafter contained, all property, whether real, personal or mixed (except any hereinafter expressly excepted), and  wheresoever situated, now owned by the Company and acquired since the execution and delivery of the Indenture  Supplemental to Mortgage and Deed of Trust, dated as of November 1, 2021, including (without in anywise limiting  or impairing by the enumeration of the same the scope and intent of the foregoing or of any general description  contained in this 2022 Supplemental Indenture) all lands, rights of way and roads; all plants for the generation of  electricity, power houses, steam heat plants, hot water plants, substations, transmission lines, distributing systems,  bridges, culverts, tracks, rolling stock, vehicles, automobiles; all offices, buildings and structures, and the equipment  thereof; all machinery, engines, boilers, turbines, dynamos, machines, regulators, meters, transformers, generators  and motors; all appliances whether electrical or mechanical, conduits, cables and lines; all pipes, whether for water,  steam heat, or other purposes; all mains and pipes, service pipes, fittings, valves and connections, poles, wires, tools,  implements, apparatus, furniture, chattels, and choses in action; all municipal franchises and other franchises; all  lines for the transmission and/or distribution of electric current, steam heat or water for any purpose, including  towers, poles, wires, cables, pipes, conduits and all apparatus for use in connection therewith; all real estate, lands,  leases, leaseholds (excepting the last day of the term of each lease and leasehold); all contracts, whether heat, light,  power or street lighting contracts; all easements, servitudes, licenses, permits, rights, powers, franchises, privileges,  rights of way and other rights in or relating to real estate or the occupancy of the same and (except as hereinafter  expressly excepted) all the right, title, and interest of the Company 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.  TOGETHER WITH all and singular the tenements, hereditaments and appurtenances belonging or in any  wise appertaining to the aforesaid property or any part thereof, with the reversion and reversions, remainder and  

 

  - 13 -    remainders and (subject to the provisions of Section 57 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.  Provided that, in addition to the reservations and exceptions herein elsewhere contained, the following are  not and are not intended to be now or hereafter 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 of this 2022 Supplemental Indenture, viz.: (1) cash, shares of stock and obligations  (including bonds, notes and other securities) not hereafter specifically pledged, paid or deposited or delivered  hereunder or under the Original Indenture or hereinafter or therein covenanted so to be; and (2) any goods, wares,  merchandise, equipment, materials or supplies 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; materials, supplies and construction  equipment; and all judgments, accounts and choses in action, the proceeds of which the Company is not obligated as  provided in the Original Indenture or as hereinafter provided to deposit with the Trustee hereunder or thereunder;  provided, however, that the property and rights expressly excepted from the lien and operation of the Original  Indenture and this 2022 Supplemental Indenture in the above subdivision (2) shall (to the extent permitted by law)  cease to be so excepted, in the event that the Trustee or a receiver or trustee shall enter upon and take possession of  the mortgaged and pledged property in the manner provided in Article XII of the Original Indenture, by reason of  the occurrence of a completed default, as defined in said Article XII.  TO HAVE AND TO HOLD all such properties, real, personal and 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 and assigns forever.  SUBJECT, HOWEVER, as to all property embraced herein to all of the reservations, exceptions,  limitations and restrictions contained in the several deeds, leases, 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 the encumbrances of the character defined in Section 6 of the Original Indenture as  “excepted encumbrances”, insofar as the same may attach to any of the property embraced herein.  IN TRUST NEVERTHELESS, upon the terms and trusts in the Original Indenture and in this 2022  Supplemental Indenture set forth for the benefit and security of those who shall hold the bonds and coupons issued  and to be issued hereunder and under the Original Indenture, or any of them, in accordance with the terms of the  Original Indenture and of this 2022 Supplemental Indenture, without preference, priority or distinction as to lien of  any of said bonds or coupons over any others thereof by reason of priority in the time of the issue or negotiation  thereof, or otherwise howsoever, subject, however, to the conditions, provisions and covenants set forth in the  Original Indenture and in this 2022 Supplemental Indenture.  AND THIS INDENTURE FURTHER WITNESSETH:  That in further consideration of the premises and for the considerations aforesaid, the Company, for itself  and its successors and assigns, hereby covenants and agrees to and with the Trustee, and its successor or successors  in such trust, as follows:  Section 1.  (a)  The Company hereby creates (i) a sixty-third series of bonds to be issued under and  secured by the Original Indenture and this 2022 Supplemental Indenture, to be designated and to be distinguished  from the bonds of all other series by the title “First Mortgage Bonds, 2.27% Series due February 15, 2032 (issued  February 2022)” and (ii) a sixty-fourth series of bonds to be issued under and secured by the Original Indenture and  this 2022 Supplemental Indenture, to be designated and to be distinguished from the bonds of all other series by the  title “First Mortgage Bonds, 3.06% Series due February 15, 2052.”  The Bonds of 2032 Series and the Bonds of the  2052 Series are herein referred to as the bonds of the New Series.  (b)  The Bonds of 2032 Series shall mature on February 15, 2032 and shall be issued in temporary or  definitive form, only as fully registered bonds, without coupons, in denominations of $100,000 and any multiple or  multiples of $1,000 authorized by the Company; they shall bear interest at the rate of 2.27 per centum per year,  

 

  - 14 -    payable semiannually on February 15 and August 15 each year, commencing August 15, 2022.  The Bonds of 2052  Series shall mature on February 15, 2052 and shall be issued in temporary or definitive form, only as fully registered  bonds, without coupons, in denominations of $100,000 and any multiple or multiples of $1,000 authorized by the  Company; they shall bear interest at the rate of 3.06 per centum per year, payable semiannually on February 15 and  August 15 each year, commencing August 15, 2022. The principal of, premium, if any, and interest on each of the  bonds of the New Series shall be payable at the office or agency of the Company, in the Borough of Manhattan, The  City of New York, in lawful money of the United States of America. Interest shall be payable on the basis of a 360- day year consisting of twelve 30-day months. In the event that any interest payment date is not a business day, then  payment of interest payable on such date will be made on the next succeeding day which is a business day with the  same force and effect as if made on the interest payment date (and without any interest or other payment in respect  of such delay). “Business day” means any day, other than a Saturday or Sunday, which is not a day on which  banking institutions or trust companies in the Borough of Manhattan, The City of New York are generally  authorized or required by law, regulation or executive order to remain closed. Interest on the bonds of the New  Series payable prior to maturity shall be paid by check mailed to the address of the person or persons entitled  thereto, as such address shall appear on the bond registration books maintained by the Trustee or by wire transfer to  an account designated by the person entitled thereto.  Subject to the preceding paragraph, the person in whose name any bonds of the New Series is registered at  the close of business on any record date (as hereinbelow defined) with respect to any interest payment date shall be  entitled to receive the interest payable on such interest payment date notwithstanding the cancellation of such bonds  of the New Series upon any transfer or exchange thereof (including any exchange effected as an incident to a partial  redemption thereof) subsequent to the record date and prior to such interest payment date, except that, if and to the  extent that the Company shall default in the payment of the interest due on such interest payment date, then the  registered holders of bonds of the New Series on such record date shall have no further right to or claim in respect of  such defaulted interest as such registered holders on such record date, and the persons entitled to receive payment of  any defaulted interest thereafter payable or paid on any bonds of the New Series shall be the registered holders of  such bonds of the New Series on the date of payment of such defaulted interest; and except that interest payable at  maturity will be paid to the person to whom principal is paid. The term “record date” as used in this Section 1, and  in the applicable form of the bonds of the New Series, shall mean the fifteenth calendar day of the month preceding  the month in which an interest payment date occurs.  (c)  Except as provided in this Section 1, all of the bonds of the New Series shall be dated as provided  in Section 10 of the Original Indenture. However, so long as there is no existing default in the payment of interest on  the bonds of the New Series, all bonds of the New Series authenticated by the Trustee between the record date for  any interest payment date and such interest payment date shall be dated as of the day following such interest  payment date and shall bear interest from such interest payment date; provided, however that if and to the extent that  the Company shall default in the interest due on such interest payment date, then any such bonds of the New Series  shall bear interest from the interest payment date next preceding the date of such bond to which interest has been  paid, unless such interest payment date is August 15, 2022, in which case from the date of original issuance of the  bonds of the New Series.  (d)  All of the bonds of the New Series shall be redeemable as set forth in the applicable form of bond  of the New Series set forth in this 2022 Supplemental Indenture.  (e)  Registered bonds of the New Series shall be transferable upon presentation and surrender thereof,  for cancellation, at the office or agency of the Company in the Borough of Manhattan, The City of New York, by the  registered holders thereof, in person or by duly authorized attorney, in the manner and upon payment of the charges  prescribed in the Original Indenture. In the manner and upon payment of the charges prescribed in the Original  Indenture, registered bonds of the New Series may be exchanged for a like aggregate principal amount of registered  bonds without coupons of the New Series of other authenticated denominations, upon presentation and surrender  thereof, for cancellation, at the office or agency of the Company in the Borough of Manhattan, The City of New  York.   (f) So long as any Initial Bondholder (as hereinbelow defined) or its nominee shall be the registered  holder of any bond of the New Series, and notwithstanding anything contained in the Original Indenture to the  contrary, the Company will pay all sums becoming due on such bond of the New Series for principal, premium, if  

 

  - 15 -    any, and interest by the method and at the address specified for such purpose by such Initial Bondholder in Schedule  A to the Bond Purchase Agreement, dated as of November 16, 2021, between the Company and the Initial  Bondholders (the “Purchase Agreement”), or by such other method or at such other address as such Initial  Bondholder shall have from time to time specified to the Trustee in writing for such purpose in accordance with the  Purchase Agreement, without the presentation or surrender of such bond of the New Series, except that concurrently  with payment and redemption in full of any bond of the New Series, the Initial Bondholder shall surrender such  bond of the New Series for cancellation to the Company at its principal office or place of payment designated by the  Company pursuant to Section 8(a) of the Original Indenture. The Company shall afford the benefits of this Section  1(f) to any Institutional Investor (as hereinbelow defined) that is the direct or indirect transferee of any bond of the  New Series purchased by the Initial Bondholder under the Original Indenture. Upon receiving payment as specified  above without the presentation or surrender of any bond of the New Series, the Initial Bondholder, its nominee or  subsequent Institutional Investor shall be deemed to have agreed to indemnify the Company and the Trustee for, and  to hold each of them harmless against, any loss, liability or expense incurred without negligence, willful misconduct  or bad faith on either of their parts, arising out of or in connection with the Initial Bondholder’s, its nominee’s or  such subsequent Institutional Investor’s failure to comply with the provisions of this Section 1(f), including the costs  of defending itself in connection therewith, such indemnity to survive the payment of such bond of the New Series  and any resignation or removal of the Trustee.  The term “Initial Bondholder” as used in this Section 1 means any registered holder of bonds of the New  Series listed on Schedule A to the Purchase Agreement. Further, the term “Institutional Investor” as used in this  Section 1 means (a) any Initial Bondholder, (b) any holder of a bond of the New Series holding more than  $1,000,000 in aggregate principal amount of the bonds of the New Series then outstanding, and (c) any bank, trust  company, savings and loan association or other financial institution, any pension plan, any investment company, any  insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form.  SECTION 2.  In accordance with and in compliance with the provisions of Article VI of the Original  Indenture, (i) Twenty-Five Million Dollars ($25,000,000) principal amount of Bonds of 2032 Series and (ii) One  Hundred Fifty Million Dollars ($150,000,000) principal amount of Bonds of 2052 Series may be executed by the  Company and delivered to the Trustee, and shall be authenticated by the Trustee (notwithstanding any provisions of  the Original Indenture to the contrary, by manual or electronic signatures) and delivered manually or electronically  (without awaiting the filing or recording of this 2022 Supplemental Indenture) from time to time in accordance with  the order or orders of the Company, evidenced by a writing or writings signed in the name of the Company by its  Authorized Officers.  SECTION 3.  The approval by the State of New Jersey Board of Public Utilities of the execution and  delivery of this 2022 Supplemental Indenture shall not in any way be construed as approval by said Board of any  other act, matter or thing which requires the approval of said Board under the laws of the State of New Jersey; nor  shall said approval bind said Board or any other public body or authority of the State of New Jersey having  jurisdiction in the premises in any future application for the issue of bonds under the Original Indenture or any  indenture supplemental thereto or otherwise.  SECTION 4.  As supplemented by this 2022 Supplemental Indenture, the Original Indenture is in all  respects ratified and confirmed and the Original Indenture and this 2022 Supplemental Indenture shall be read, taken  and construed as one and the same instrument.  Nothing in this 2022 Supplemental Indenture contained shall, or shall be construed to, confer upon any  person other than the holders of bonds issued under the Original Indenture and this 2022 Supplemental Indenture,  the Company and the Trustee, any right to avail themselves of any benefit of any provision of the Original Indenture  or of this 2022 Supplemental Indenture.  The Trustee assumes no responsibility for the correctness of the recitals of facts contained herein and  makes no representations as to the validity of this 2022 Supplemental Indenture.  This 2022 Supplemental Indenture may be simultaneously executed in any number of counterparts, each of  which so executed shall be deemed to be an original; but such counterparts shall together constitute but one and the  same instrument.  

 

  - 16 -    SECTION 5.  The Company agrees that the Trustee shall have the right to accept and act upon instructions,  including funds transfer instructions (“Instructions”) given pursuant to the Indenture and delivered using Electronic  Means; provided, however, that the Company shall provide to the Trustee an incumbency certificate listing officers  with the authority and designated to provide such Instructions (“Authorized Officers”) and containing specimen  signatures of such Authorized Officers, which incumbency certificate shall be amended by the Company whenever a  person is to be added or deleted from the listing.  If the Company elects to give the Trustee Instructions using  Electronic Means and the Trustee in its discretion elects to act upon such Instructions, the Trustee’s understanding  of such Instructions shall be deemed controlling.  The Company understands and agrees that the Trustee cannot  determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively presume that  directions that purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to  the Trustee have been sent by such Authorized Officer.  The Company shall be responsible for ensuring that only  Authorized Officers transmit such Instructions to the Trustee and that the Company and all Authorized Officers are  solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords  and/or authentication keys upon receipt by the Company.  The Trustee shall not be liable for any losses, costs or  expenses arising directly or indirectly from its reliance upon and compliance with such Instructions notwithstanding  such directions conflict or are inconsistent with a subsequent written instruction.  The Company agrees: (i) to  assume all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without  limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third  parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting  Instructions to the Trustee and that there may be more secure methods of transmitting Instructions than the  method(s) selected by the Company; (iii) that the security procedures (if any) to be followed in connection with its  transmission of Instructions provide to it a commercially reasonable degree of protection in light of its particular  needs and circumstances; and (iv) to notify the Trustee immediately upon learning of any compromise or  unauthorized use of the security procedures. "Electronic Means" shall mean the following communications methods:  e-mail, facsimile transmission, secure electronic transmission containing applicable authorization codes, passwords  and/or authentication keys issued by the Trustee, or another method or system specified by the Trustee as available  for use in connection with its services hereunder.  (Signature Pages Follow) 

 

      IN WITNESS WHEREOF, ATLANTIC CITY ELECTRIC COMPANY, party hereto of the first part, has  caused this instrument to be signed in its name and behalf by an Authorized Officer and THE BANK OF NEW  YORK MELLON, party hereto of the second part, has caused this instrument to be signed in its name and behalf by  a Vice President. Executed and delivered by Atlantic City Electric Company in the City of Chicago, Illinois, the 1st  day of February, 2022.          ATLANTIC CITY ELECTRIC COMPANY                     By:                       Elizabeth M. Hensen, Authorized Officer                         

 

            THE BANK OF NEW YORK MELLON,              as Trustee              By:                       Name:  Latoya S. Elvin                Title:    Vice President                                                                                                      [Signature Page to Supplemental Indenture]   

 

    STATE OF ILLINOIS )                                               )SS.  COUNTY OF COOK     )           BE IT REMEMBERED that on this 1st day of February, in the year of our Lord two thousand twenty two  before me, a Notary Public in and for the State of Illinois, personally appeared Elizabeth M. Hensen, an Authorized  Officer of ATLANTIC CITY ELECTRIC COMPANY, named in the foregoing Indenture Supplemental to  Mortgage and Deed of Trust; that the said Indenture Supplemental to Mortgage and Deed of Trust was signed by the  said Authorized Officer in the presence of deponent; that said Indenture Supplemental to Mortgage and Deed of  Trust was signed and delivered as and for the voluntary act and deed of said Company for the uses and purposes  therein expressed, pursuant to a resolution of the Board of Directors of said grantor; and at the execution thereof this  deponent subscribed her/his name thereto as witness.     Sworn and subscribed the day and year aforesaid.                             Notary Public - State of Illinois                   My Commission Expires                    

 

    STATE OF NEW JERSEY )                                               )SS.  COUNTY OF PASSAIC     )       BE IT REMEMBERED that on this 10th day of February, in the year of our Lord two thousand twenty two  before me, a Notary Public in and for the State aforesaid, personally appeared Latoya S. Elvin, who being by me duly  sworn on her oath says that she is an authorized Vice President of THE BANK OF NEW YORK MELLON, the  Trustee named in the foregoing Indenture Supplemental to Mortgage and Deed of Trust; that the said Indenture  Supplemental to Mortgage and Deed of Trust was signed by the said Vice President; that said Indenture Supplemental  to Mortgage and Deed of Trust was signed and delivered as and for the voluntary act and deed of said Trustee for the  uses and purposes therein expressed, pursuant to authority of the Board of Directors of said Trustee; and at the  execution thereof this deponent subscribed his name thereto as witness.     Sworn and subscribed the day and year aforesaid.                    Brett J. Anderson                Notary Public - State of New Jersey                My Commission Expires January 23, 2024              

 

    CERTIFICATE OF RESIDENCE       THE BANK OF NEW YORK MELLON, Mortgagee and Trustee within named, hereby certifies that its  precise residence is 240 Greenwich 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:                    Latoya S. Elvin  Vice Presidentexc-20220215ex44

  DMFIRM #400267942 v4    This Instrument Prepared By:    Patrick R. Gillard                                                 Ballard Spahr LLP  1735 Market Street, 51st Floor  Philadelphia, PA 19103  Phone (215) 864-8536        DELMARVA POWER & LIGHT COMPANY  TO  THE BANK OF NEW YORK MELLON,  Trustee.  ________  ONE HUNDRED AND TWENTY-NINTH SUPPLEMENTAL INDENTURE  ________  Dated as of February 1, 2022  (but executed on the dates shown on the execution page)    

 

   2  This ONE HUNDRED AND TWENTY-NINTH SUPPLEMENTAL INDENTURE, dated as  of the 1st day of February, 2022 (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 Hundred and Twenty-Ninth 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 twenty-eight  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  Twenty-Ninth Supplemental Indenture, is hereinafter in this One Hundred and Twenty-Ninth  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, 3.06% Series due February 15, 2052 (hereinafter sometimes referred to as the “3.06% Series  Bonds” or the “bonds of 3.06% Series”), which said 3.06% Series Bonds are to be substantially in the  following form:  [FORM OF FACE OF BOND]   THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED, OR THE SECURITIES OR “BLUE SKY” LAWS OF ANY OTHER JURISDICTION,  AND MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH SUCH REGISTRATION  REQUIREMENTS OR UNDER AN EXEMPTION THEREFROM.    DELMARVA POWER & LIGHT COMPANY  FIRST MORTGAGE BOND,  3.06% SERIES DUE FEBRUARY 15, 2052  Number: [_______] $[_________]  

 

   3   PPN No.: [_______]  DELMARVA POWER & LIGHT COMPANY, a Delaware and Virginia corporation (the  “Company”), for value received, hereby promises to pay to [_____________], the sum of  [____________] Dollars ($[__________]) on February 15, 2052, 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 February 15 and August 15 of each year at the rate of three and six hundredths  percent (3.06%) per annum, at said office or agency in like coin or currency, from the fifteenth day of  February or August, as the case may be, to which interest has been paid preceding the date hereof (unless  the date hereof is a February 15 or August 15 on which interest has been paid, in which case from the date  hereof, or unless the date hereof is prior to August 15, 2022, in which case from February 15, 2022), 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 February 15 or August 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, by  manual, facsimile or electronic signatures, 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 electronic signature of one of its Authorized Officers and  attested by the manual, facsimile or electronic signature of its Secretary or one of its Assistant Secretaries.  Dated: February 15, 2022      DELMARVA POWER & LIGHT COMPANY  Attest:    By:    Assistant Secretary   Authorized Officer    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  

 

   4  By:    Authorized Officer    [FORM OF REVERSE OF BOND]  DELMARVA POWER & LIGHT COMPANY  FIRST MORTGAGE BOND,  3.06% SERIES DUE FEBRUARY 15, 2052  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, 3.06% Series due February 15, 2052 (herein  sometimes referred to as “bonds of 3.06% 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 Twenty-Ninth  Supplemental Indenture, dated as of February 1, 2022 (the “One Hundred and Twenty-Ninth  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 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.  

 

   5  The fully registered bonds of 3.06% Series are issuable in denominations of $100,000 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 Twenty-Ninth Supplemental Indenture.  In order to enable the Trustee to comply with its obligations under applicable tax laws, rules and  regulations in effect from time to time (“Applicable Law”), the Company shall provide to the Trustee,  following written request from the Trustee, such information concerning the holders of the bonds of  3.06% Series as the Trustee may reasonably request in order to determine whether the Trustee has any  tax-related obligations under Applicable Law with respect to the payments made to holders of the bonds  of 3.06% Series, but only to the extent (a) such information is in the Company’s possession, (b) such  information is not subject to any confidentiality or similar agreement or undertaking or otherwise deemed  by the Company to be confidential and (c) providing such information to the Trustee does not, in the  judgment of the Company, breach or violate or constitute a default under any applicable laws, rules or  regulations or any instrument or agreement to which the Company of any of its affiliates is a party or may  be bound. The Company, the Trustee or any paying agent for the bonds of 3.06% Series shall be  permitted to make any withholding or deduction from the amount of principal and interest payable to  holders of the bonds of 3.06% Series to the extent required under Applicable Law.  The bonds of 3.06% 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; provided that the Company may not redeem  less than 5% of the aggregate principal amount of the bonds of 3.06% Series in the case of any partial  redemption. The Company shall give notice of its intent to redeem such bonds of 3.06% Series to the  holders of such bonds of 3.06% Series at least 30 days but no more than 90 days prior to the date fixed for  such redemption (the “Redemption Date”).   Except as otherwise provided in the succeeding paragraph with respect to optional redemption  during the Prepayment Period (as defined herein), if the Company redeems all or any part of the bonds of  3.06% Series pursuant to the provisions of this paragraph, it shall pay an amount equal to 100% of the  principal amount of the bonds of 3.06% Series to be redeemed and a Make-Whole Amount, which shall  be calculated as follows:  “Make-Whole Amount” means, as determined by the Company, with respect to any bond of  3.06% Series, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled  Payments with respect to the Called Principal of such bond of 3.06% Series over the amount of such  Called Principal of such bond of 3.06% Series, provided, that the Make-Whole Amount may in no event  be less than zero.  For the purposes of determining the Make-Whole Amount, the following terms have  the following meanings and each of which will be determined by the Company:  “Business Day” means any day other than a Saturday, a Sunday or a day on which  commercial banks in New York City are required or authorized to be closed.  “Called Principal” means, with respect to any bond of 3.06% Series, the principal of such  bond of 3.06% Series that is to be redeemed or has become or is declared to be immediately  due and payable pursuant to the Mortgage.  

 

   6  “Discounted Value” means, with respect to the Called Principal of any bond of 3.06% Series,  the amount obtained by discounting all Remaining Scheduled Payments with respect to such  Called Principal from their respective scheduled due dates to the Settlement Date with respect  to such Called Principal, in accordance with accepted financial practice and at a discount  factor (applied on the same periodic basis as that on which interest on the bonds of 3.06%  Series is payable) equal to the Reinvestment Yield with respect to such Called Principal.  “Reinvestment Yield” means, with respect to the Called Principal of any bond of 3.06%  Series, the sum of (a) 0.50% plus (b) the yield to maturity implied by the “Ask Yield(s)”  reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the  Settlement Date with respect to such Called Principal, on the display designated as “Page  PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for  the most recently issued actively traded on-the-run U.S. Treasury securities (“Reported”)  having a maturity equal to the Remaining Average Life of such Called Principal as of such  Settlement Date.  If there are no such U.S. Treasury securities Reported having a maturity  equal to such Remaining Average Life, then such implied yield to maturity will be  determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in  accordance with accepted financial practice and (ii) interpolating linearly between the “Ask  Yields” Reported for the applicable most recently issued actively traded on-the-run U.S.  Treasury securities with the maturities (1) closest to and greater than such Remaining  Average Life and (2) closest to and less than such Remaining Average Life.  The  Reinvestment Yield shall be rounded to the number of decimal places as appears in the  interest rate of the applicable bond of 3.06% Series.  If such yields are not Reported or the yields Reported as of such time are not ascertainable  (including by way of interpolation), then “Reinvestment Yield” means, with respect to the  Called Principal of any bond of 3.06% Series, the sum of (x) 0.50% plus (y) the yield to  maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for  which such yields have been so reported as of the second Business Day preceding the  Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release  H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity  having a term equal to the Remaining Average Life of such Called Principal as of such  Settlement Date.  If there is no such U.S. Treasury constant maturity having a term equal to  such Remaining Average Life, such implied yield to maturity will be determined by  interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the  term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury  constant maturity so reported with the term closest to and less than such Remaining Average  Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in  the interest rate of the applicable bond of 3.06% Series.  “Remaining Average Life” means, with respect to any Called Principal, the number of years  obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by  multiplying (a) the principal component of each Remaining Scheduled Payment with respect  to such Called Principal by (b) the number of years, computed on the basis of a 360-day year  comprised of twelve 30-day months and calculated to two decimal places, that will elapse  between the Settlement Date with respect to such Called Principal and the scheduled due date  of such Remaining Scheduled Payment.  “Remaining Scheduled Payments” means, with respect to the Called Principal of any bond of  3.06% Series, all payments of such Called Principal and interest thereon that would be due  after the Settlement Date with respect to such Called Principal if no payment of such Called  

 

   7  Principal were made prior to its scheduled due date, provided that if such Settlement Date is  not a date on which interest payments are due to be made under the bonds of 3.06% Series,  then the amount of the next succeeding scheduled interest payment will be reduced by the  amount of interest accrued to such Settlement Date and required to be paid on such  Settlement Date.  “Settlement Date” means, with respect to the Called Principal of any bond of 3.06% Series,  the date on which such Called Principal is to be prepaid or has become or is declared to be  immediately due and payable pursuant to the Mortgage, as the context requires. The  Company’s notice of redemption to the holders of bonds of 3.06% Series shall specify such  date (which shall be a Business Day), the aggregate principal amount of the bonds of 3.06%  Series to be prepaid on such date, the principal amount of each bond of 3.06% Series held by  such holder to be prepaid (determined in accordance with the next paragraph hereof), and the  interest to be paid on the prepayment date with respect to such principal amount being  prepaid, and shall be accompanied by a certificate of the chief financial officer, principal  accounting officer, treasurer, assistant treasurer or comptroller of the Company (each, a  “Senior Financial Officer”) as to the estimated Make-Whole Amount due in connection with  such prepayment (calculated as if the date of such notice were the date of the prepayment),  setting forth the details of such computation.  Two Business Days prior to such prepayment,  the Company shall deliver to the Trustee and each holder of bonds of 3.06% Series a  certificate of a Senior Financial Officer specifying the calculation of such Make-Whole  Amount as of the specified prepayment date.  Provided that no default or event of default has occurred and is continuing, within one hundred  and eighty days (180) days of the stated maturity date of the bonds of 3.06% Series (the period from such  date to the stated maturity of the bonds of 3.06% Series being referred to herein as the “Prepayment  Period”), the Company may, at its option, upon prior written notice as provided below, prepay all the  bonds of 3.06% Series at 100% of the principal amount so prepaid, together with interest on such  principal amount accrued to the date of prepayment and without any Make-Whole Amount.  In the case of each partial prepayment of the bonds of 3.06% Series, the principal amount of the  bonds of 3.06% Series to be prepaid shall be allocated among all of the bonds of 3.06% Series at the time  outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not  theretofore called for prepayment.  In the case of each prepayment of bonds of 3.06% Series, the principal amount of each bond of  3.06% Series to be prepaid shall mature and become due and payable on the date fixed for such  prepayment, together with interest on such principal amount accrued to such date and the applicable  Make-Whole Amount, if any.  From and after such date, unless the Company shall fail to pay such  principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as  aforesaid, interest on such principal amount shall cease to accrue.  Any bond of 3.06% Series paid or  prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no bond  of 3.06% Series shall be issued in lieu of any prepaid principal amount of any bond of 3.06% Series.  The Company shall deliver to the Trustee before any Redemption Date for the bonds of 3.06%  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 3.06% Series.  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  

 

   8  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 Twenty-Ninth 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]  WHEREAS, all acts and things prescribed by law and by the charter and by-laws of the Company  necessary to make the 3.06% 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  

 

   9  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 Twenty-Ninth 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 3.06% Series Bonds; and the Company  therefore deems it advisable to enter into this One Hundred and Twenty-Ninth Supplemental Indenture in  the form and terms hereof; and  WHEREAS, the execution and delivery of this One Hundred and Twenty-Ninth 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 Twenty-Ninth 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 Twenty-Ninth 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 Twenty-Ninth 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 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 Twenty-Ninth 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 Twenty-Ninth Supplemental Indenture shall  include particularly, among other property, without prejudice to the generality of the language  hereinbefore or hereinafter contained, the following described property:  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,  

 

   10  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 Twenty-Ninth 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 Twenty-Ninth 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 Twenty-Ninth Supplemental Indenture, specifically pledged or deposited or delivered or  

 

   11  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 Twenty-Ninth 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 Twenty-Ninth 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 3.06% SERIES BONDS  SECTION 1. The bonds of 3.06% Series shall be designated as “First Mortgage Bonds, 3.06%  Series due February 15, 2052.” The bonds of 3.06% Series shall be issuable from time to time as fully  registered bonds in denominations of $100,000 and in any integral multiple of $1,000 in excess thereof.  Each of the bonds of 3.06% Series shall be dated the date of issue, and shall bear interest payable from the  fifteenth day of February or August, as the case may be, to which interest has been paid preceding the  date thereof, unless such date is a February 15 or August 15 on which interest has been paid, in which  case it shall bear interest from such date, or unless such date is prior to August 15, 2022, in which case it  shall bear interest from February 15, 2022. The interest so payable on any February 15 or August 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 3.06% Series shall be payable  on February 15, 2052, 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  

 

   12  currency, at the rate of three and six hundredths percent (3.06%) per annum, payable semi-annually on  February 15 and August 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 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 3.06%  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 3.06% 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 3.06% 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 3.06% 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 3.06% Series shall be redeemable as set forth in the form of bond of the bonds of  3.06% Series set forth in this One Hundred and Twenty-Ninth 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 3.06% Series shall bear the following legend:   “THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED, OR THE SECURITIES OR “BLUE SKY” LAWS OF ANY OTHER JURISDICTION,  AND MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH SUCH REGISTRATION  REQUIREMENTS OR UNDER AN EXEMPTION THEREFROM.”  In addition to the events of default described in Article X of the Indenture, an event of default  with respect to the 3.06% Series Bonds will include the additional events of default described in Section  11 of the Bond Purchase Agreement  among the Company and the initial holders of the 3.06% Series  Bonds specified on Schedule A to the Bond Purchase Agreement.  The Trustee shall not be deemed to  have actual or constructive knowledge of any event of default under the Bond Purchase Agreement unless  an officer of the Trustee with direct responsibility for the administration of the Indenture (a “responsible  officer”) shall have received written notice thereof from the Company or from one of the holders of the  3.06% Series Bonds then outstanding that references the 3.06% Series Bonds and the Indenture.  

 

   13  SECTION 2. The principal amount of the bonds of 3.06% 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 3.06% Series for the aggregate principal amount of One Hundred and  Twenty-Five Million Dollars ($125,000,000), being the initial issuance of bonds of 3.06% 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 II and  IV of the Indenture.  SECTION 4. In order to enable the Trustee to comply with its obligations under applicable tax  laws, rules and regulations in effect from time to time (“Applicable Law”), the Company shall provide to  the Trustee, following written request from the Trustee, such information concerning the holders of the  bonds of 3.06% Series as the Trustee may reasonably request in order to determine whether the Trustee  has any tax-related obligations under Applicable Law with respect to the payments made to holders of the  bonds of 3.06% Series, but only to the extent (a) such information is in the Company’s possession, (b)  such information is not subject to any confidentiality or similar agreement or undertaking or otherwise  deemed by the Company to be confidential and (c) providing such information to the Trustee does not, in  the judgment of the Company, breach or violate or constitute a default under any applicable laws, rules or  regulations or any instrument or agreement to which the Company of any of its affiliates is a party or may  be bound. The Company, the Trustee or any paying agent for bonds of 3.06% Series shall be permitted to  make any withholding or deduction from the amount of principal and interest payable to holders of the  bonds of 3.06% Series to the extent required under Applicable Law. Each holder of bonds of 3.06%  Series by accepting such bond shall be deemed to have agreed that the Company may provide to the  Trustee such information concerning such holder as the Trustee may request in order to determine  whether the Trustee has any tax-related obligations under Applicable Law with respect to the payments  made to such holder under this One Hundred and Twenty-Ninth Supplemental Indenture; and such  agreement by each holder is part of the consideration for the issuance of the bonds of 3.06% Series.  ARTICLE II.    MISCELLANEOUS  SECTION 1. As supplemented and amended by this One Hundred and Twenty-Ninth  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 Twenty-Ninth Supplemental Indenture shall be read, taken and construed as one and the  same instrument.  SECTION 2. This One Hundred and Twenty-Ninth 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, Mail  Stop 92DC42, 500 North 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  

 

   14  New York Mellon, 500 Ross Street, 12th Floor, Pittsburgh, Pennsylvania 15262, Attn: Corporate Trust  Administration.  SECTION 5. The Company acknowledges that it received a true and correct copy of this One  Hundred and Twenty-Ninth Supplemental Indenture.  SECTION 6. The Company agrees that the Trustee shall have the right to accept and act upon  instructions, including funds transfer instructions (“Instructions”) given pursuant to the Indenture and  delivered using Electronic Means; provided, however, that the Company shall provide to the Trustee an  incumbency certificate listing officers with the authority and designated to provide such Instructions  (“Authorized Officers”) and containing specimen signatures of such Authorized Officers, which  incumbency certificate shall be amended by the Company whenever a person is to be added or deleted  from the listing.  If the Company elects to give the Trustee Instructions using Electronic Means and the  Trustee in its discretion elects to act upon such Instructions, the Trustee’s understanding of such  Instructions shall be deemed controlling.  The Company understands and agrees that the Trustee cannot  determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively  presume that directions that purport to have been sent by an Authorized Officer listed on the incumbency  certificate provided to the Trustee have been sent by such Authorized Officer.  The Company shall be  responsible for ensuring that only Authorized Officers transmit such Instructions to the Trustee and that  the Company and all Authorized Officers are solely responsible to safeguard the use and confidentiality  of applicable user and authorization codes, passwords and/or authentication keys upon receipt by the  Company.  The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly  from its reliance upon and compliance with such Instructions notwithstanding such directions conflict or  are inconsistent with a subsequent written instruction.  The Company agrees: (i) to assume all risks  arising out of the use of Electronic Means to submit Instructions to the Trustee, including without  limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and  misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various  methods of transmitting Instructions to the Trustee and that there may be more secure methods of  transmitting Instructions than the method(s) selected by the Company; (iii) that the security procedures (if  any) to be followed in connection with its transmission of Instructions provide to it a commercially  reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the  Trustee immediately upon learning of any compromise or unauthorized use of the security procedures.  "Electronic Means" shall mean the following communications methods: e-mail, facsimile transmission,  secure electronic transmission containing applicable authorization codes, passwords and/or authentication  keys issued by the Trustee, or another method or system specified by the Trustee as available for use in  connection with its services hereunder.  (SIGNATURE PAGES FOLLOW) 

 

  Company’s Signature Page  129th Supplemental Indenture dated as of February 1, 2022  to the Delmarva Power & Light Company Mortgage and Deed of Trust  dated as of October 1, 1943    IN WITNESS WHEREOF, the Company has caused this instrument to be signed in its name and  behalf by an Authorized Officer and the Trustee has caused this instrument to be signed in its name and  behalf by an Authorized Officer, effective as of the 1st day of February, 2022.    DELMARVA POWER & LIGHT COMPANY  Date of Execution  By:      Elizabeth M. Hensen   Authorized Officer  February _____, 2022                      STATE OF ILLINOIS           )                                                              ) SS.       COUNTY OF COOK               )         BE IT REMEMBERED that on this _____ day of February, 2022, personally came before me, a  notary public for the State of Illinois, Elizabeth M. Hensen, an Authorized 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 her own act and deed and the act and deed of the Company; that her  signature is in his own proper handwriting; and that her act of signing, executing and delivering such  instrument was duly authorized by resolution of the Board of Directors of the Company.   GIVEN under my hand the day and year aforesaid.            [SEAL]     Notary Public, State of Illinois           My commission expires      

 

  Trustee’s Signature Page  129th Supplemental Indenture dated as of February 1, 2022  to the Delmarva Power & Light Company Mortgage and Deed of Trust  dated as of October 1, 1943        THE BANK OF NEW YORK MELLON,  as Trustee  Date of Execution  By:       Latoya S. Elvin  Vice President  February_10, 2022                        STATE OF NEW JERSEY           )                                                              ) SS.       COUNTY OF PASSAIC               )       BE IT REMEMBERED that on this 10th day of February, 2022, personally came before me, a  Notary Public for the State of New Jersey, Latoya S. Elvin, 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; and that her act of signing,  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.                            Brett J. Anderson                                                                                 Notary Public - State of New Jersey                                                                                 My Commission Expires January 23, 2024    

 

    CERTIFICATE OF RESIDENCE  THE BANK OF NEW YORK MELLON, successor Trustee to the Trustee within named, hereby  certifies that it has a residence at 240 Greenwich 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      Latoya S. Elvin   Vice President

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