Document:

Exhibit

Exhibit 4.1

Prepared by: /s/ John C. Halderman     
John C. Halderman
Associate General Counsel
PECO Energy Company
2301 Market Street
Philadelphia, PA  19103
(215) 841-4263
Return to:    John C. Halderman
Associate General Counsel
PECO Energy Company
2301 Market Street
Philadelphia, PA  19103
(215) 841-4263

Counterpart ______ of 30
PECO ENERGY COMPANY
TO
U.S. BANK NATIONAL ASSOCIATION, TRUSTEE 
______________________ 
 
ONE HUNDRED AND FIFTEENTH SUPPLEMENTAL  
INDENTURE DATED AS OF  
FEBRUARY 1, 2018 
 
TO
FIRST AND REFUNDING MORTGAGE
OF
THE COUNTIES GAS AND ELECTRIC  
COMPANY
TO
FIDELITY TRUST COMPANY, TRUSTEE 
DATED MAY 1, 1923
__________________
3.900% SERIES DUE 2048 
(New Series)

    

Exhibit 4.1

PECO ENERGY COMPANY
TO
U.S. BANK NATIONAL ASSOCIATION, TRUSTEE 

______________________ 
 

ONE HUNDRED AND FIFTEENTH SUPPLEMENTAL  
INDENTURE DATED AS OF  
FEBRUARY 1, 2018 
 
TO
FIRST AND REFUNDING MORTGAGE
OF
THE COUNTIES GAS AND ELECTRIC  
COMPANY
TO
FIDELITY TRUST COMPANY, TRUSTEE 
DATED MAY 1, 1923
__________________

3.900% SERIES DUE 2048 
(New Series)

Exhibit 4.1

THIS SUPPLEMENTAL INDENTURE dated as of February 1, 2018 by and between PECO ENERGY COMPANY, a corporation organized and existing under the laws of the Commonwealth of Pennsylvania (hereinafter called the Company), party of the first part, and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America (hereinafter called the Trustee), as Trustee under the Mortgage hereinafter mentioned, party of the second part, Witnesseth that
WHEREAS, The Counties Gas and Electric Company (hereinafter called Counties Company), a Pennsylvania corporation and a predecessor to the Company, duly executed and delivered to Fidelity Trust Company, a Pennsylvania corporation to which the Trustee is successor, as Trustee, a certain indenture of mortgage and deed of trust dated May 1, 1923 (hereinafter called the Mortgage), to provide for the issue of, and to secure, its First and Refunding Mortgage Bonds, issuable in series and without limit as to principal amount except as provided in the Mortgage, the initial series of Bonds being designated the 6% Series of 1923, and the terms and provisions of other series of bonds secured by the Mortgage to be determined as provided in the Mortgage; and 
WHEREAS, thereafter Counties Company, Philadelphia Suburban-Counties Gas and Electric Company (hereinafter called Suburban Company), and the Company, respectively, have from time to time executed and delivered indentures supplemental to the Mortgage, providing for the creation of additional series of bonds secured by the Mortgage and for amendment of certain of the terms and provisions of the Mortgage and of indentures supplemental thereto, or evidencing the succession of Suburban Company to Counties Company and of the Company to Suburban Company, such indentures supplemental to the Mortgage, the respective dates, parties thereto, and purposes thereof, being as follows:

1

Exhibit 4.1

	
			
	

Supplemental Indenture  
      and Date   
	Parties
	Providing for:

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

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

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

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

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

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

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

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

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

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

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

2

Exhibit 4.1

	
			
	

Supplemental Indenture  
      and Date   
	Parties
	Providing for:

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

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

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

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

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

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

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

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

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

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

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

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

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

3

Exhibit 4.1

	
			
	

Supplemental Indenture  
      and Date   
	Parties
	Providing for:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4

Exhibit 4.1

	
			
	

Supplemental Indenture  
      and Date   
	Parties
	Providing for:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5

Exhibit 4.1

	
			
	

Supplemental Indenture  
      and Date   
	Parties
	Providing for:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6

Exhibit 4.1

	
			
	

Supplemental Indenture  
      and Date   
	Parties
	Providing for:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

7

Exhibit 4.1

	
			
	

Supplemental Indenture  
      and Date   
	Parties
	Providing for:

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

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

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

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

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

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

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

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

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

	Ninety-seventh 
October 15, 2001
	Company to First Union National Bank (formerly First Fidelity Bank, N.A., Pennsylvania)
	Bonds of  5.95% Series  
due 2011*

	Ninety-eighth
October 1, 2002
	Company to Wachovia Bank, National Association
	Bonds of 5.95% Series
Due 2011*

	Ninety-ninth
September 15, 2002
	Company to Wachovia Bank, National Association
	Bonds of 4.75% Series
Due 2012*

	One Hundredth 
April 15, 2003
	Company to Wachovia Bank, National Association
	Bonds of 3.50% Series
Due 2008*

	One Hundred and First
April 15, 2004
	Company to Wachovia Bank, National Association
	Bonds of 5.90% Series
Due 2034*

	One Hundred and Second
September 15, 2006
	Company to Wachovia Bank, National Association
	Bonds of 5.95% Series
Due 2036; amendment of certain provisions of Mortgage*

8

Exhibit 4.1

	
			
	

Supplemental Indenture  
      and Date   
	Parties
	Providing for:

	One Hundred and Third
March 15, 2007
	Company to U.S. Bank National Association
	Bonds of 5.70% Series
Due 2037*

	One Hundred and Fourth
February 15, 2008
	Company to U.S. Bank National Association
	Bonds of 5.35% Series
Due 2018*

	One Hundred and Fifth
February 15, 2008
	Company to U.S. Bank National Association
	Bonds of Pollution  
Control Series N*

	One Hundred and Sixth
September 15, 2008
	Company to U.S. Bank National Association
	Bonds of 5.60% Series 
Due 2013*

	One Hundred and Seventh
March 15, 2009
	Company to U.S. Bank National Association
	Bonds of 5.00% Series 
Due 2014*

	One Hundred and Eighth
September 1, 2012
	Company to U.S. Bank National Association
	Bonds of 2.375% Series 
Due 2022*

	One Hundred and Ninth
September 15, 2013
	Company to U.S. Bank National Association
	Bonds of 1.200% Series 
Due 2016*

	One Hundred and Tenth
September 15, 2013
	Company to U.S. Bank National Association
	Bonds of 4.800% Series 
Due 2043*

	One Hundred and Eleventh
September 1, 2014
	Company to U.S. Bank National Association
	Bonds of 4.150% Series 
Due 2044*

	One Hundred and Twelfth
       September 15, 2015
	Company to U.S. Bank National Association
	Bonds of 3.15% Series 
Due 2025*

	One Hundred and Thirteenth
       September 1, 2016
	Company to U.S. Bank National Association
	Bonds of 1.700% Series 
Due 2021*

	One Hundred and Fourteenth
       September 1, 2017
	Company to U.S. Bank National Association
	Bonds of 3.700% Series 
Due 2047*

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

9

Exhibit 4.1

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

	5.90%
	 
	Series due 2034
	$
	75,000,000
	

	5.95%
	 
	Series due 2036
	300,000,000
	

	5.70%
	 
	Series due 2037
	175,000,000
	

	5.35%
	 
	Series due 2018
	500,000,000
	

	2.375%
	 
	Series due 2022
	350,000,000
	

	4.80%
	 
	Series due 2043
	250,000,000
	

	4.150%
	 
	Series due 2044
	300,000,000
	

	3.150%
	 
	Series due 2025
	350,000,000
	

	1.700%
	 
	Series due 2021
	300,000,000
	

	3.700%
	 
	Series due 2047
	325,000,000
	

	 
	 
	Total
	2,925,000,000
	

WHEREAS, the Company deems it advisable and has determined, pursuant to Article XI of the Mortgage,
(a)    to amend Article II of the Ninth Supplemental Indenture to the Mortgage as heretofore amended;
(b)    to convey, pledge, transfer and assign to the Trustee and to subject specifically to the lien of the Mortgage additional property not therein or in any supplemental indenture specifically described but now owned by the Company and acquired by it by purchase or otherwise; and
(c)    to create a new series of bonds to be issued from time to time under, and secured by, the Mortgage, to be designated PECO Energy Company First and Refunding Mortgage Bonds, 3.900% Series due 2048, (hereinafter sometimes called the “bonds of the New Series” or the “bonds of the 3.900% Series due 2048”); and for the above-mentioned purposes to execute, deliver and record this Supplemental Indenture; and
WHEREAS, the Company has determined by proper corporate action that the terms, provisions and form of the bonds of the New Series shall be substantially as follows:

10

Exhibit 4.1

(Form of Face of Bond)
UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY BOND ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.  OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
PECO ENERGY COMPANY
REGISTERED                                 
NUMBER
FIRST AND REFUNDING MORTGAGE BOND, 
3.900% SERIES DUE 2048,  
DUE MARCH 1, 2048
PECO Energy Company, a Pennsylvania corporation (hereinafter called the Company), for value received, hereby promises to pay to Cede & Co. or registered assigns,                       Dollars on March 1, 2048, at the office or agency of the Company, in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company, in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment shall constitute legal tender for the payment of public and private debts, and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) thereon from the date hereof at the rate of 3.900 percent per annum in like coin or currency, payable at either of the offices aforesaid on March 1 and September 1 of each year, beginning on September 1, 2018, until the Company’s obligation with respect to the payment of such principal shall have been discharged.
The record date for determining the registered holder of this bond entitled to an interest payment shall be fourteen calendar days prior to any interest payment date.  Only the registered holder on such record date shall be entitled to receive such payment, notwithstanding any transfer of this bond upon the registration books subsequent to such record date.
This bond shall not be valid or become obligatory for any purpose unless it shall have been authenticated by the certificate of the Trustee under said Mortgage endorsed hereon.
The provisions of this bond are continued on the reverse hereof and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.
[Remainder of this page intentionally left blank]

11

Exhibit 4.1

IN WITNESS WHEREOF, PECO Energy Company has caused this instrument to be signed in its corporate name with the manual or facsimile signature of its President or a Vice President, duly attested by the manual or facsimile signature of its Secretary or an Assistant Secretary.
Dated:
PECO ENERGY COMPANY

By_________________________________
President or Vice President

Attest______________________________
Secretary or Assistant Secretary

12

Exhibit 4.1

(Form of Reverse of Bond)
PECO ENERGY COMPANY 
First and Refunding Mortgage Bond, 
3.900% Series Due 2048,  
Due March 1, 2048
(CONTINUED)
This bond is one of a duly authorized issue of bonds of the Company, unlimited as to amount except as provided in the Mortgage hereinafter mentioned or in any indenture supplemental thereto, and is one of a series of said bonds known as First and Refunding Mortgage Bonds, 3.900% Series due 2048 This bond and all other bonds of said issue are issued and to be issued under and pursuant to and are all secured equally and ratably by an indenture of mortgage and deed of trust dated May 1, 1923, duly executed and delivered by The Counties Gas and Electric Company (to which the Company is successor) to Fidelity Trust Company, as Trustee (to which U.S. Bank National Association, a national banking association organized and existing under the laws of the United States of America, is successor Trustee), as amended, modified or supplemented by certain supplemental indentures from the Company or its predecessors to said successor Trustee or its predecessors, said mortgage, as so amended, modified or supplemented being herein called the Mortgage. Reference is hereby made to the Mortgage for a statement of the property mortgaged and pledged, the nature and extent of the security, the rights of the holders of said bonds and of the Trustee in respect of such security, the rights, duties and immunities of the Trustee, and the terms and conditions upon which said bonds are and are to be secured, and the circumstances under which additional bonds may be issued.
As provided in the Mortgage, the bonds secured thereby may be for various principal sums and are issuable in series, which series may mature at different times, may bear interest at different rates, and may otherwise vary. The bonds of this series mature on March 1, 2048, and are issuable only in registered form without coupons in any denomination authorized by the Company. 
Any bond or bonds of this series may be exchanged for another bond or bonds of this series in a like aggregate principal amount in authorized denominations, upon presentation at the office of the Trustee in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company in the Borough of Manhattan, The City of New York, all subject to the terms of the Mortgage but without any charge other than a sum sufficient to reimburse the Company for any stamp tax or other governmental charge incident to the exchange.
The bonds of this series are redeemable at the option of the Company, as a whole or in part, at any time upon notice sent by the Company through the mail, postage prepaid, at least thirty (30) days and not more than forty-five (45) days prior to the date fixed for redemption, to the registered holder of each bond to be redeemed, addressed to such holder at his address appearing upon the registration books.  At any time prior to September 1, 2047, the redemption price shall be equal to the greater of (1) 100% of the principal amount of the bonds to be redeemed, plus accrued interest to the redemption date, or (2) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed (not 

13

Exhibit 4.1

including any portion of payments of interest accrued as of the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 12.5 basis points, plus accrued interest to the redemption date.  At any time on or after September 1, 2047 the redemption price shall be equal to 100% of the principal amount of the bonds to be redeemed, plus accrued interest to the redemption date.  Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the bonds of this series or portions of the bonds of this series called for redemption.
“Adjusted Treasury Rate” means, with respect to any redemption date, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the redemption date.
“Business Day” means any day that is not a day on which banking institutions in New York City are authorized or required by law or regulation to close.
“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the bonds of this series that would be used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the bonds of this series.
“Comparable Treasury Price” means, with respect to any redemption date:
		
	•
	the average of the Reference Treasury Dealer Quotations for that redemption date, after excluding the highest and lowest of the Reference Treasury Dealer Quotations; or

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

“Quotation Agent” means the Reference Treasury Dealer appointed by the Company.
“Reference Treasury Dealer” means (1) each of Mizuho Securities USA LLC, Wells Fargo Securities, LLC and a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) selected by U.S. Bancorp Investments, Inc. and their respective successors and affiliates, in each case, unless such entity ceases to be a Primary Treasury Dealer, in which case the Company shall substitute another Primary Treasury Dealer, and (2) any other Primary Treasury Dealer selected by the Company.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding that redemption date.

14

Exhibit 4.1

The principal of this bond may be declared or may become due on the conditions, in the manner and with the effect provided in the Mortgage upon the happening of an event of default as in the Mortgage provided.
This bond is transferable by the registered holder hereof in person or by attorney, duly authorized in writing, at the office of the Trustee in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company in the Borough of Manhattan, The City of New York, in books of the Company to be kept for that purpose, upon surrender and cancellation hereof, and upon any such transfer, a new registered bond or bonds, without coupons, of this series and for the same aggregate principal amount, will be issued to the transferee in exchange herefor, all subject to the terms of the Mortgage but without payment of any charge other than a sum sufficient to reimburse the Company for any stamp tax or other governmental charge incident to the transfer. The Company, the Trustee, and any paying agent may deem and treat the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment of or on account of the principal and interest due hereon and for all other purposes, and neither the Company nor the Trustee nor any paying agent shall be affected by any notice to the contrary.
No recourse shall be had for the payment of the principal of or interest on this bond to any incorporator or any past, present or future stockholder, officer or director of the Company or of any predecessor or successor corporation, either directly or indirectly, by virtue of any statute or by enforcement of any assessment or otherwise, and any and all liability of the said incorporators, stockholders, officers or directors of the Company or of any predecessor or successor corporation in respect to this bond is hereby expressly waived and released by every holder hereof, except to the extent that such liability may not be waived or released under the provisions of the Securities Act of 1933, as amended, or of the rules and regulations of the Securities and Exchange Commission thereunder.

(End of Form of Reverse of Bond) 

15

Exhibit 4.1

and
WHEREAS, on the face of each of the bonds of the New Series, there is to be endorsed a certificate of the Trustee in substantially the following form, to wit:
(Form of Trustee’s Certificate)
This bond is one of the bonds, of the series designated therein, provided for in the within-mentioned Mortgage and in the One Hundred and Fifteenth Supplemental Indenture dated as of February 1, 2018.
U.S. BANK NATIONAL ASSOCIATION, 
Trustee

By______________________________
Authorized Officer
and
WHEREAS, all acts and things necessary to make the bonds of the New Series, when duly executed by the Company and authenticated by the Trustee as provided in the Mortgage and indentures supplemental thereto, and issued by the Company, the valid, binding and legal obligations of the Company, and this Supplemental Indenture a valid and enforceable supplement to the Mortgage, have been done, performed and fulfilled and the execution and delivery hereof have been in all respects duly and lawfully authorized.
NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:
That in order to secure the payment of the principal of and interest on all bonds issued and to be issued under the Mortgage and/or under any indenture supplemental thereto, according to their tenor and effect, and according to the terms of the Mortgage and of any indenture supplemental thereto, and to secure the performance of the covenants and obligations in the bonds and in the Mortgage and any indenture supplemental thereto respectively contained, and for the proper assuring, conveying, and confirming unto the Trustee, its successors in trust and its and their assigns forever, upon the trusts and for the purposes expressed in the Mortgage and in any indentures supplemental thereto, all and singular the estates, property and franchises of the Company thereby mortgaged or intended so to be, the Company, for and in consideration of the premises and of the sum of One Dollar ($1.00) in hand paid by the Trustee to the Company upon the execution and delivery of this Supplemental Indenture, receipt whereof is hereby acknowledged, and of other good and valuable consideration, has granted, bargained, sold, conveyed, released, confirmed, pledged, assigned, transferred and set over and by these presents does grant, bargain, sell, convey, release, confirm, pledge, assign, transfer, and set over to U.S. Bank National Association, as Trustee, and to its successors in trust and its and their assigns forever, all the following described property, real, personal and mixed of the Company, viz.:

16

Exhibit 4.1

All of the real property with any improvements thereon erected as may be owned by the Company and described in the Mortgage or in any indenture supplemental thereto as may heretofore have been executed, delivered and recorded, but excluding therefrom all real property heretofore released from the lien of the Mortgage.  The purpose of restating such prior conveyances as security is to confirm that the obligations of the Company as provided in this Supplemental Indenture are included within the lien and security of the Mortgage, and that public record be made of such purpose and fact by the recording of this Supplemental Indenture.
Together with all gas works, electric works, plants, buildings, structures, improvements and machinery located upon such real estate or any portion thereof, and all rights, privileges and easements of every kind and nature appurtenant thereto, and all and singular the tenements, hereditaments and appurtenances belonging to the real estate or any part thereof hereinbefore described or referred to or intended so to be, or in any way appertaining thereto, and the reversions, remainders, rents, issues and profits thereof; also all the estate, right, title, interest, property, possession, claim and demand whatsoever, as well in law as in equity, of the Company, of, in and to the same and any and every part thereof, with the appurtenances.
Also all the Company’s electric transmission and distribution lines and systems, substations, transforming stations, structures, machinery, apparatus, appliances, devices and appurtenances.
Also all the Company’s gas transmission and distribution mains, pipes, pipe lines and systems, storage facilities, structures, machinery, apparatus, appliances, devices and appurtenances.
Also all plants, systems, works, improvements, buildings, structures, fixtures, appliances, engines, furnaces, boilers, machinery, retorts, tanks, condensers, pumps, gas tanks, holders, reservoirs, expansion tanks, gas mains and pipes, tunnels, service pipe, pipe lines, fittings, gates, valves, connections, gas and electric meters, generators, dynamos, fans, supplies, tools and implements, tracks, sidings, motor and other vehicles, all electric light lines, electric power lines, transmission lines, distribution lines, conduits, cables, stations, substations, and distributing systems, motors, conductors, converters, switchboards, shafting, belting, wires, mains, feeders, poles, towers, mast arms, brackets, pipes, lamps, insulators, house wiring connections and all instruments, appliances, apparatus, fixtures, fittings and equipment and all stores, repair parts, materials and supplies of every nature and kind whatsoever now or hereafter owned by the Company in connection with or appurtenant to its plants and systems for production, purchase, storage, transmission, distribution, utilization and sale of gas and its by‐products and residual products, and/or for the generation, production, purchase, storage, transmission, distribution, utilization and sale of electricity, or in connection with such business.
Also all the goodwill of the business of the Company, and all rights, claims, contracts, leases, patents, patent rights, and agreements, all accounts receivable, accounts, claims, demands, choses in action, books of account, cash assets, franchises, ordinances, rights, powers, easements, water rights, riparian rights, licenses, privileges, immunities, concessions and consents now or hereafter owned by the Company in connection with or appurtenant to its said business.
Also all the right, title and interest of the Company in and to all contracts for the purchase, sale or supply of gas, and its by‐products and residual products of electricity and electrical energy, 

17

Exhibit 4.1

now or hereafter entered into by the Company with the right on the part of the Trustee, upon the happening of an event of default as defined in the Mortgage as supplemented by any supplemental indenture, to require a specific assignment of any and all such contracts, whenever it shall request the Company to make the same.
Also all rents, tolls, earnings, profits, revenues, dividends and income arising or to arise from any property now owned, leased, operated or controlled or hereafter acquired, leased, operated or controlled by the Company and subject to the lien of the Mortgage and indentures supplemental thereto.
Also all the estate, right, title and interest of the Company, as lessee, in and to any and all demised premises under any and all agreements of lease now or at any time hereafter in force, insofar as the same may now or hereafter be assignable by the Company.
Also all other property, real, personal and mixed not hereinbefore specified or referred to, of every kind and nature whatsoever, now owned, or which may hereafter be owned by the Company (except shares of stock, bonds or other securities not now or hereafter specifically pledged under the Mortgage and indentures supplemental thereto or required to be pledged thereunder by the provisions of the Mortgage or any indenture supplemental thereto), together with all and singular the tenements, hereditaments and appurtenances thereunto belonging or in any way appertaining and the reversions, remainder or remainders, rents, issues and profits thereof; and also all the estate, right, title, interest, property, claim and demand whatsoever as well in law as in equity of the Company of, in and to the same and every part and parcel thereof.
It is the intention and it is hereby agreed that all property and the earnings and income thereof acquired by the Company after the date hereof shall be as fully embraced within the provisions hereof and subject to the lien hereby created for securing the payment of all bonds, together with the interest thereon, as if the property were now owned by the Company and were specifically described herein and conveyed hereby, provided nevertheless, that no shares of stock, bonds or other securities now or hereafter owned by the Company, shall be subject to the lien of the Mortgage and indentures supplemental thereto unless now or hereafter specifically pledged or required to be pledged thereunder by the provisions of the Mortgage or any indenture supplemental thereto.
TO HAVE AND TO HOLD, all and singular the property, rights, privileges and franchises hereby conveyed, transferred or pledged or intended so to be, including after‐acquired property, together with all and singular the reversions, remainders, rents, revenues, income, issues and profits, privileges and appurtenances, now or hereafter belonging or in any way appertaining thereto, unto the Trustee and its successors in the trust hereby created, and its and their assigns forever;
IN TRUST NEVERTHELESS, for the equal and pro rata benefit and security of each and every person or corporation who may be or become the holders of bonds secured by the Mortgage and indentures supplemental thereto, without preference, priority or distinction (except as provided in Section 1 of Article VIII of the Mortgage) as to lien or otherwise of any bond of any series over or from any other bond, so that (except as aforesaid) each and every of the bonds issued or to be issued, of whatsoever series, shall have the same right, lien, privilege under the Mortgage and indentures supplemental thereto and shall be equally secured thereby and hereby, with the same 

18

Exhibit 4.1

effect as if the bonds had all been made, issued and negotiated simultaneously on the date of the Mortgage.
AND THIS SUPPLEMENTAL INDENTURE FURTHER WITNESSETH:
It is hereby covenanted that all bonds secured by the Mortgage and indentures supplemental thereto with the coupons appertaining thereto, are issued to and accepted by each and every holder thereof, and that the property aforesaid and all other property subject to the lien of the Mortgage and indentures supplemental thereto is held by or hereby conveyed to the Trustee, under and subject to the trusts, conditions and limitations set forth in the Mortgage and indentures supplemental thereto and upon and subject to the further trusts, conditions and limitations hereinafter set forth, as follows, to wit:
ARTICLE I

AMENDMENTS OF MORTGAGE
Section 1.    Article II of the Ninth Supplemental Indenture to the Mortgage, as heretofore amended, is hereby further amended as follows:
By adding to paragraph (d) of Section 5 and to the first clause of Section 9, the following:
“3.900% Series due 2048”
ARTICLE II. 
BONDS OF THE NEW SERIES
Section 1.    The bonds of the New Series shall be designated as hereinabove specified for such designation in the recital immediately preceding the form of bonds of the New Series, subject however, to the provisions of Section 2 of Article I of the Mortgage, as amended, and are issuable only as registered bonds without coupons, substantially in the form hereinbefore recited.  Subject to the provisions of the Mortgage, the bonds of the New Series shall be issuable without limitation as to the aggregate principal amount thereof. 
The bonds of the New Series shall bear interest from the date thereof and shall be dated as of the interest payment date to which interest was paid next preceding the date of issue unless (a) such date of issue is an interest payment date to which interest was paid, in which event such bonds shall be dated as of such interest payment date, or (b) issued prior to the occurrence of the first interest payment date on which interest is to be paid, in which event such bonds shall be dated February 23, 2018.  The bonds of the New Series shall mature on March 1, 2048.
The bonds of the New Series shall bear interest (computed on the basis of a 360-day year of twelve 30-day months) at the rate provided in the form of bond hereinbefore recited, payable on March 1 and September 1 of each year, beginning on September 1, 2018, until the Company’s obligation with respect to the payment of principal thereof shall have been discharged.  Both principal 

19

Exhibit 4.1

and interest on bonds of the New Series shall be payable at the office or agency of the Company in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company in the Borough of Manhattan, The City of New York, and shall be payable in such coin or currency of the United States of America as at the time of payment shall constitute legal tender for the payment of public and private debts.
The bonds of the New Series shall be in any denomination authorized by the Company.
Any bond or bonds of the New Series shall be exchangeable for another bond or bonds of the New Series in a like aggregate principal amount.  Any such exchange may be made upon presentation at the office of the Trustee in the City of Philadelphia, Pennsylvania, or, at the option of the holder, at the office or agency of the Company in the Borough of Manhattan, The City of New York, without any charge other than a sum sufficient to reimburse the Company for any stamp tax or other governmental charge incident to the exchange.
Section 2.    (a)    Initially, the bonds of the New Series shall be issued pursuant to a book-entry system administered by The Depository Trust Company (or its successor, referred to herein as the “Depository”) as a global security with no physical distribution of bond certificates to be made except as provided in this Section 2.  Any provisions of the Mortgage or the bonds of the New Series requiring physical delivery of bonds shall, with respect to any bonds of the New Series held under the book-entry system, be deemed to be satisfied by a notation on the bond registration books maintained by the Trustee that such bonds are subject to the book-entry system.
(a)    So long as the book-entry system is being used, one or more bonds of the New Series in the aggregate principal amount of the bonds of the New Series and registered in the name of the Depository’s nominee (the “Nominee”) will be issued and required to be deposited with the Depository and held in its custody.  The book-entry system will be maintained by the Depository and its participants and indirect participants and will evidence beneficial ownership of the bonds of the New Series, with transfers of ownership effected on the records of the Depository, the participants and the indirect participants pursuant to rules and procedures established by the Depository, the participants and the indirect participants.  The principal of and any premium on each bond of the New Series shall be payable to the Nominee or any other person appearing on the registration books as the registered holder of such bond or its registered assigns or legal representative at the office of the office or agency of the Company in the City of Philadelphia, Pennsylvania or the Borough of Manhattan, The City of New York.  So long as the book-entry system is in effect, the Depository will be recognized as the holder of the bonds of the New Series for all purposes.  Transfers of principal, interest and any premium payments or notices to participants and indirect participants will be the responsibility of the Depository, and transfers of principal, interest and any premium payments or notices to beneficial owners will be the responsibility of participants and indirect participants.  No other party will be responsible or liable for such transfers of payments or notices or for maintaining, supervising or reviewing such records maintained by the Depository, the participants or the indirect participants.  While the Nominee or the Depository, as the case may be, is the registered owner of the bonds of the New Series, notwithstanding any other provisions set forth herein, payments of principal of, redemption premium, if any, and interest on the bonds of the New Series shall be made to the Nominee or the Depository, as the case may be, 

20

Exhibit 4.1

by wire transfer in immediately available funds to the account of such holder.  Without notice to or consent of the beneficial owners, the Trustee with the consent of the Company and the Depository may agree in writing to make payments of principal, redemption price and interest in a manner different from that set forth herein.  In such event, the Trustee shall make payment with respect to the bonds of the New Series in such manner as if set forth herein.
(b)    The Company may at any time elect (i) to provide for the replacement of any Depository as the depository for the bonds of the New Series with another qualified depository, or (ii) to discontinue the maintenance of the bonds of the New Series under book-entry system.  In such event, the Trustee shall give 30 days’ prior notice of such election to the Depository (or such fewer number of days acceptable to such Depository).
(c)    Upon the discontinuance of the maintenance of the bonds of the New Series under a book-entry system, the Company will cause the bonds to be issued directly to the beneficial owners of the bonds of the New Series, or their designees, as further described below.  In such event, the Trustee shall make provisions to notify participants and beneficial owners of the bonds of the New Series, by mailing an appropriate notice to the Depository, that bonds of the New Series will be directly issued to beneficial owners of the bonds as of a date set forth in such notice (or such fewer number of days acceptable to such Depository).
(d)    In the event that bonds of the New Series are to be issued to beneficial owners of the bonds, or their designees, the Company shall promptly have bonds of the New Series prepared in certificated form registered in the names of the beneficial owners of such bonds shown on the records of the participants provided to the Trustee, as of the date set forth in the notice above.  Bonds issued to beneficial owners, or their designees shall be substantially in the form set forth in this Supplemental Indenture, but will not include the provision related to global securities.
(e)    If the Depository is replaced as the depository for the bonds of the New Series with another qualified depository, the Company will issue a replacement global security substantially in the form set forth in this Supplemental Indenture.
(f)    The Company and the Trustee shall have no liability for the failure of any Depository to perform its obligations to any participant, any indirect participant or any beneficial owner of any bonds of the New Series, and the Company and the Trustee shall not be liable for the failure of any participant, indirect participant or other nominee of any beneficial owner or any bonds of the New Series to perform any obligation that such participant, indirect participant or other nominee may incur to any beneficial owner of the bonds of the New Series.
(g)    Notwithstanding any other provision of the Mortgage, on or prior to the date of issuance of the bonds of the New Series, the Trustee shall have executed and delivered to the initial Depository a Letter of Representations governing various matters relating to the Depository and its activities pertaining to the bonds of the New Series.  The terms and provisions of such Letter of Representations are incorporated herein by reference and, in the event there shall exist any inconsistency between the substantive provisions of the said Letter of Representations and any provisions of the Mortgage, then, for as long as the initial Depository shall serve as depository with respect to the bonds of the New Series, the terms of the Letter of Representations shall govern. 

21

Exhibit 4.1

(h)    The Company and the Trustee may rely conclusively upon (i) a certificate of the Depository as to the identity of a participant in the book-entry system; (ii) a certificate of any participant as to the identity of any indirect participant and (iii) a certificate of any participant or any indirect participant as to the identity of, and the respective principal amount of bonds of the New Series owned by, beneficial owners.
Section 3.    So long as the bonds of the New Series are held by The Depository Trust Company, such bonds of the New Series shall bear the following legend:
UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY BOND ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.  OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.  OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
Section 4.    So long as any of the bonds of the New Series remain outstanding, the Company shall keep at its office or agency in the Borough of Manhattan, The City of New York, as well as at the office of the Trustee in the City of Philadelphia, Pennsylvania, books for the registry and transfer of outstanding bonds of the New Series, in accordance with the terms and provisions of the bonds of the New Series and the provisions of Section 8 of Article I of said Mortgage.
Section 5.    So long as any bonds of the New Series remain outstanding, the Company shall maintain an office or agency in the City of Philadelphia, Pennsylvania, and an office or agency in the Borough of Manhattan, The City of New York, for the payment upon proper demand of the principal of, the interest on, or the redemption price of the outstanding bonds of the New Series, and will from time to time give notice to the Trustee of the location of such office or agency.  In case the Company shall fail to maintain for such purpose an office or agency in the City of Philadelphia or shall fail to give such notice of the location thereof, then notices, presentations and demands in respect of the bonds of the New Series may be given or made to or upon the Trustee at its office in the City of Philadelphia and the principal of, the interest on, and the redemption price of said bonds in such event be payable at said office of the Trustee.  All bonds of the New Series when paid shall forthwith be cancelled.
Section 6.    The record date for determining the registered holder of this bond entitled to an interest payment shall be fourteen calendar days prior to any interest payment date.  Only the registered holder of such bond on such record date shall be entitled to receive such payment, notwithstanding any transfer of such bond upon the registration books subsequent to such record date.
Section 7.    The bonds of the New Series shall be issued under and subject to all of the terms and provisions of the Mortgage, of the indentures supplemental thereto referred to in the recitals 

22

Exhibit 4.1

hereof and of this Supplemental Indenture which may be applicable to such bonds or applicable to all bonds issued under the Mortgage and indentures supplemental thereto.
ARTICLE III. 
 
ISSUE AND AUTHENTICATION OF 
BONDS OF THE NEW SERIES
In addition to any bonds of any series which may from time to time be executed by the Company and authenticated and delivered by the Trustee upon compliance with the provisions of the Mortgage and/or of any indenture supplemental thereto, bonds of the New Series of an aggregate principal amount of $325,000,000 shall forthwith be executed by the Company and delivered to the Trustee, and the Trustee shall thereupon, whether or not this Supplemental Indenture shall have been recorded, authenticate and deliver said bonds to or upon the written order of the President, a Vice President, or the Treasurer of the Company, under the terms and provisions of paragraph (d) of Section 3 of Article II of the Mortgage, as amended.
ARTICLE I    . 

REDEMPTION OF BONDS OF THE 
NEW SERIES

Section 1.    The bonds of the New Series shall be redeemable, at the option of the Company, as a whole or in part, at any time upon notice sent by the Company through the mail, postage prepaid, at least thirty (30) days and not more than forty‐five (45) days prior to the date fixed for redemption, to the registered holder of each bond to be redeemed in whole or in part, addressed to such holder at his address appearing upon the registration books.  At any time prior to September 1, 2047 the redemption price shall be equal to the greater of (1) 100% of the principal amount of the bonds to be redeemed, plus accrued interest to the redemption date, or (2) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the bonds to be redeemed (not including any portion of payments of interest accrued as of the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 12.5 basis points, plus accrued interest to the redemption date.  At any time on or after September 1, 2047 the redemption price shall be equal to 100% of the principal amount of the bonds to be redeemed, plus accrued interest to the redemption date.  Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the bonds of this series or portions of the bonds of this series called for redemption.
“Adjusted Treasury Rate” means, with respect to any redemption date, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the redemption date.
“Business Day” means any day that is not a day on which banking institutions in New York City are authorized or required by law or regulation to close.

23

Exhibit 4.1

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the bonds of this series that would be used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the bonds of the New Series.
“Comparable Treasury Price” means, with respect to any redemption date:
		
	•
	the average of the Reference Treasury Dealer Quotations for that redemption date, after excluding the highest and lowest of the Reference Treasury Dealer Quotations; or

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

“Reference Treasury Dealer” means (1) each of Mizuho Securities USA LLC, Wells Fargo Securities, LLC and a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) selected by U.S. Bancorp Investments, Inc. and their respective successors and affiliates, in each case, unless such entity ceases to be a Primary Treasury Dealer, in which case the Company shall substitute another Primary Treasury Dealer, and (2) any other Primary Treasury Dealer selected by the Company.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the trustee by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding that redemption date.
Section 2.    In case the Company shall desire to exercise such right to redeem and pay off all or any part of such bonds of the New Series as hereinbefore provided it shall comply with all the terms and provisions of Article III of the Mortgage, as amended, applicable thereto, and such redemption shall be made under and subject to the terms and provisions of Article III and in the manner and with the effect therein provided, but at the time or times and upon mailing of notice, all as hereinbefore set forth in Section 1 of this Article. No publication of notice of any redemption of any bonds of the New Series shall be required.

24

Exhibit 4.1

ARTICLE V. 
 
CERTAIN EVENTS OF DEFAULT; REMEDIES
Section 1.  So long as any bonds of the New Series remain outstanding, in case one or more of the following events shall happen, such events shall, in addition to the events of default heretofore enumerated in paragraphs (a) throughout (d) of Section 2 of Article VIII of the Mortgage, constitute an “event of default” under the Mortgage, as fully as if such events were enumerated therein:
(e) default shall be made in the due and punctual payment of the principal (including the full amount of any applicable optional redemption price) of any bond or bonds of the New Series whether at the maturity of said bonds, or at a date fixed for redemption of said bonds, or any of them, or by declaration as authorized by the Mortgage;
Section 2.  So long as any bonds of the New Series remain outstanding, Section 10 of Article VIII of the Mortgage, as heretofore amended, is hereby further amended by inserting in the first paragraph of such Section 10, immediately after the words “as herein provided,” at the end of clause (2) thereof, the following:
“or (3) in case default shall be made in any payment of any interest on any bond or bonds secured by this indenture or in the payment of the principal (including any applicable optional redemption price) of any bond or bonds secured by this indenture, where such default is not of the character referred to in clause (1) or (2) of this Section 10 but constitutes an event of default within the meaning of Section 2 of this Article VIII.”
ARTICLE VI. 
 
CONCERNING THE TRUSTEE
The Trustee hereby accepts the trust herein declared and provided and agrees to perform the same upon the terms and conditions set forth in the Mortgage, as amended and supplemented, and upon the following terms and conditions:
The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity of this Supplemental Indenture or the due execution hereof by the Company or for or in respect of the recitals contained herein, all of which recitals are made by the Company solely.
ARTICLE VII. 
 
MISCELLANEOUS
Section 1.    Unless otherwise clearly required by the context, the term “Trustee,” or any other equivalent term used in this Supplemental Indenture, shall be held and construed to mean the trustee under the Mortgage for the time being whether the original or a successor trustee.

25

Exhibit 4.1

Section 2.    The headings of the Articles of this Supplemental Indenture are inserted for convenience of reference only and are not to be taken to be any part of this Supplemental Indenture or to control or affect the meaning of the same.
Section 3.    Nothing expressed or mentioned in or to be implied from this Supplemental Indenture or in or from the bonds of the New Series is intended, or shall be construed, to give any person or corporation, other than the parties hereto and their respective successors, and the holders of bonds secured by the Mortgage and the indentures supplemental thereto, any legal or equitable right, remedy or claim under or in respect of such bonds or the Mortgage or any indenture supplemental thereto, or any covenant, condition or provision therein or in this Supplemental Indenture contained. All the covenants, conditions and provisions thereof and hereof are for the sole and exclusive benefit of the parties hereto and their successors and of the holders of bonds secured by the Mortgage and indentures supplemental thereto.
Section 4.    This Supplemental Indenture may be executed in several counterparts, each of which shall be an original and all collectively but one instrument.
Section 5.    This Supplemental Indenture is dated and shall be effective as of February 1, 2018, but was actually executed and delivered on February 15, 2018.

[Remainder of this page intentionally left blank]

26

Exhibit 4.1

IN WITNESS WHEREOF, the President or a Vice President of the party of the first part and the President or a Vice President of the party of the second part, under and by the authority vested in them, have hereto affixed their signatures and their Secretaries or Assistant Secretaries have duly attested the execution hereof the __th day of February, 2018.
PECO ENERGY COMPANY

By_/s/ Phillip S. Barnett______________
Phillip S. Barnett
Senior Vice President,
Chief Financial Officer and 
Treasurer

Attest_/s/ John C. Halderman__________
John C. Halderman
Assistant Secretary

U.S. BANK NATIONAL ASSOCIATION, Trustee

By_/s/ George J. Rayzis______________
George J. Rayzis
Vice President

Attest_/s/ Michael Judge______________
Authorized Officer

27

Exhibit 4.1

COMMONWEALTH OF PENNSYLVANIA : 
                          :  SS. 
COUNTY OF PHILADELPHIA          :

 
    On this, the 15th day of February, 2018, before me, a Notary Public in and for the Commonwealth of Pennsylvania, the undersigned officer, personally appeared Phillip S. Barnett who acknowledged himself to be the Senior Vice President, Chief Financial Officer and Treasurer of PECO Energy Company, a Pennsylvania corporation, and that he as such officer, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as such officer.
In witness whereof, I hereunto set my hand and official seal.

_/s/ Jennifer Brodheim______________ 
                                    Notary Public
My Commission expires:
[NOTARIAL SEAL]

28

Exhibit 4.1

COMMONWEALTH OF PENNSYLVANIA : 
                          :  SS. 
COUNTY OF PHILADELPHIA          :

 
    On this, the 15th day of February, 2018, before me, a Notary Public in and for the Commonwealth of Pennsylvania, the undersigned officer, personally appeared George J. Rayzis who acknowledged himself to be the Vice President of U.S. Bank National Association, a national banking association, as Trustee, and that he as such officer, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the national banking association, as Trustee, by himself as such officer.
In witness whereof, I hereunto set my hand and official seal.

_/s/ Eileen Cassidy______________ 
                                    Notary Public
My Commission expires:
[NOTARIAL SEAL]

29

Exhibit 4.1

CERTIFICATE OF RESIDENCE
U.S. Bank National Association, Mortgagee and Trustee within named, hereby certifies that its precise address in the City of Philadelphia is 50 South 16th Street, Philadelphia, Pennsylvania 19102.

U.S. BANK NATIONAL ASSOCIATION, 
Trustee

By_/s/ George J. Rayzis______________
George J. Rayzis
Vice President

30

Exhibit 4.1

PECO ENERGY COMPANY
TO
U.S. BANK NATIONAL ASSOCIATION, TRUSTEE
______________________ 
 

ONE HUNDRED AND FIFTEENTH SUPPLEMENTAL  
INDENTURE DATED AS OF  
FEBRUARY 1, 2018 
 
TO
FIRST AND REFUNDING MORTGAGE
OF
THE COUNTIES GAS AND ELECTRIC  
COMPANY
TO
FIDELITY TRUST COMPANY, TRUSTEE 
DATED MAY 1, 1923
__________________

3.900% SERIES DUE 2048Exhibit

Exhibit 10.6

BUCKEYE PARTNERS, L.P.
ANNUAL INCENTIVE COMPENSATION PLAN
(As Amended and Restated, Effective As Of January 1, 2018)

ANNUAL INCENTIVE COMPENSATION PLAN
Buckeye Partners, L.P., a Delaware limited partnership, hereby establishes the Buckeye Partners, L.P. Annual Incentive Compensation Plan, as amended and restated, effective as of January 1, 2018.  The Plan permits annual discretionary cash awards to Employees, based upon the level of the achievement of Performance Goals and Individual Performance.  The Plan shall remain in effect until terminated as herein provided.

ARTICLE I  PLAN PURPOSES

The purpose of the Plan is to provide discretionary annual incentive awards to Employees based upon the level of attainment of the Partnership’s Performance Goals and the Employee’s Individual Performance. 

ARTICLE II      DEFINITIONS
The terms defined in this Article II shall, for all purposes of this Plan, have the meanings herein specified, unless the context expressly, or by necessary implication, requires otherwise:
		
	2.1
	“Actual Award” shall mean the actual dollar amount paid out of the Actual Award Pool to an Employee under the Plan. 

		
	2.2
	“Actual Award Pool” shall mean the aggregate annual incentive pool available to the Administrator for making Actual Awards as determined pursuant to Section 6.1. 

		
	2.3
	“Administrator” shall mean the Committee for the general administration of the Plan, including the establishment and determinations with respect to Performance Goals and all determinations regarding Actual Awards to Executive Officers. The Chief Executive Officer of the General Partner or his designee shall be the Administrator with respect to Actual Awards to non-Executive Officers. 

		
	2.4
	“Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules under the Securities Exchange Act of 1934, as amended.  Any reference to an Affiliate in this Plan shall include an Affiliate of the Partnership or the General Partner, as applicable, including Buckeye Pipe Line Services Company.

		
	2.5
	“Board” shall mean the Board of Directors of the General Partner.

		
	2.6
	“Code” shall mean the Internal Revenue Code of 1986, as amended.  Reference in the Plan to any section of the Code shall be deemed to include any amendment or successor provisions to such section and any regulations under such section.

1

Exhibit 10.6

		
	2.7
	“Committee” shall mean the Compensation Committee of the Board, or such other committee as determined by the Board.

		
	2.8
	“Employee” shall mean, unless otherwise determined by the Administrator, a regular full-time exempt or non-exempt employee of the Partnership, General Partner or Affiliate; provided, however, that an Employee shall not include any individual (a) whose terms of employment are governed by a collective bargaining agreement, or (b) characterized as a "leased employee" within the meaning of Code Section 414.  Notwithstanding the foregoing, if an individual is engaged in a non-employee status (including, but not limited to, as an independent contractor, an individual being paid through an employee leasing company or other third party agency) and is subsequently reclassified by the Partnership, General Partner, Affiliate, the Internal Revenue Service, or a court as an employee for payroll purposes, such individual, for purposes of the Plan, shall be deemed an Employee from the actual (and not the effective) date of such reclassification, unless expressly provided otherwise by the Partnership, General Partner or Affiliate.

		
	2.9
	“Executive Officers” shall mean the executive officers of the Partnership, General Partner or Affiliate as defined in Rule 3b-7 of the Exchange Act and as determined by the Administrator in its sole discretion.  

		
	2.10
	“Performance Goals” shall mean the goals established by the Administrator based on one or more financial criteria, including, but not limited to, the following: Adjusted EBITDA, EBITDA, unit price, earnings per unit, net earnings, operating earnings, total capital spending, maintenance capital spending, return on assets, total unit holder return, return on equity, growth in assets, cash flow, market share, distribution growth, distributable cash flow, distributable cash flow per unit, relative performance to a comparison group, or strategic business criteria, including, but not limited to, meeting specified revenue goals, business expansion goals, cost targets, goals relating to acquisitions or divestitures, safety, operational incident and environmental goals and standards.  

		
	2.11
	“General Partner” means Buckeye GP LLC, a Delaware limited liability company, and any successor thereto.

		
	2.12
	“Individual Performance” shall mean each Employee’s work performance during the Performance Period which may be assessed by the Administrator based on one or more criteria, including, but not limited to: personal or team performance and measures such as teamwork, interpersonal skills, communication skills, employee development, project management skills, and leadership, or individual or team business objectives such as performance versus budget and attainment of safety, operational incident and environmental standards.  

		
	2.13
	“Participant” shall mean an Employee who meets the eligibility requirements of Section 4.1 and is awarded an Actual Award under the Plan.  

2

Exhibit 10.6

		
	2.14
	“Partnership” means Buckeye Partners, L.P., a Delaware limited partnership, and any successor thereto.

		
	2.15
	“Performance Period” shall mean the Plan Year or any other period designated by the Administrator with respect to which performance of the Company, Employees, or both, is measured.

		
	2.16
	“Plan” shall mean the Buckeye Partners, L.P. Annual Incentive Compensation Plan, or if hereafter amended or supplemented, as so amended or supplemented.

		
	2.17
	“Plan Year” shall mean the calendar year.

		
	2.18
	“Target Award Level” shall mean the target incentive amount for each Employee as determined by the Administrator in its sole discretion.  

		
	2.19
	“Target Award Pool” shall mean the Target Award Pool established by the Administrator pursuant to Section 5.3.  

ARTICLE III      CONSTRUCTION
		
	3.1
	Gender and Number.  The masculine pronoun whenever used in the Plan shall include the feminine, and the feminine pronoun whenever used in the Plan shall include the masculine, in each case as the context or facts may require. Whenever any words are used herein in the singular, they shall be construed as if they were also used in the plural in all cases where the context so applies.

		
	3.2
	Captions.  The captions to the articles and sections of this Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.

		
	3.3
	Severability.  In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

		
	3.4
	Controlling Law.  The Plan and all related documents shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflict of law principles of any state.  Any persons or companies who now are or shall subsequently become parties to the Plan shall be deemed to consent to this provision.

		
	3.5
	No Right to Employment.  This Plan does not confer nor shall it be construed as creating an express or implied contract of employment between any Employee and the Partnership, General Partner or Affiliate or other party. Nothing in the Plan shall interfere with or limit in any way the right of the Partnership, General Partner or Affiliate to terminate any Employee’s employment at any time, nor confer upon any 

3

Exhibit 10.6

Employee any right to continue in the employment of the Partnership, General Partner or Affiliate.
ARTICLE IV      ELIGIBILITY AND PARTICIPATION
		
	4.1
	Eligibility.  Except to the extent determined otherwise in accordance with Section 4.3, in order to be eligible to participate in the Plan for a Performance Period, an individual must be (a) an Employee; (b) hired before the commencement of the last quarter of the Performance Period; (c) employed on the last day of the Plan Year and (d) employed on the date an Actual Award is paid as set forth herein.

		
	4.2
	No Right to Participation.  No Employee shall have a right to participate in the Plan, regardless of prior participation in the Plan.

		
	4.3
	Status Change During Performance Period.  Unless otherwise determined by the Administrator in its sole discretion, an Employee shall be ineligible to receive an Actual Award if the Employee is not employed on the date an Actual Award is paid pursuant to Section 7.1.  

		
	4.4
	Leave of Absence.  Unless the Administrator determines otherwise, except when leave is taken under the Family and Medical Leave Act of 1993 ("FMLA"), the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA"), or the reasonable accommodation provisions of the Americans with Disabilities Act of 1990, as amended ("ADA") (or equivalent state or local laws), or is otherwise prohibited by any applicable law, an Employee on paid or un-paid leave for more than ninety (90) days during any Plan Year shall be ineligible for an Actual Award for that Plan Year. 

ARTICLE V      ESTABLISHMENT OF PERFORMANCE GOALS AND SETTING TARGET AWARD LEVELS
		
	5.1
	Establishment of Performance Goals.  For each Performance Period, the Committee shall establish the Performance Goals in its sole discretion.   The Committee may adjust the Performance Goals to take into account such unanticipated circumstances or significant events as the Committee determines, including but not limited to, a corporate transaction, such as an acquisition, divestiture, a merger, consolidation, separation, reorganization or partial or complete liquidation, or to equitably reflect the occurrence of any other extraordinary or unusual event in the marketplace, any change in applicable accounting rules or principles, any change in applicable law, litigation, any change due to any merger, consolidation, acquisition, reorganization, distribution, or other changes in the Partnership's corporate structure or units, or any other change of a similar nature. 

		
	5.2
	Setting Target Award Levels.  For each Performance Period, the Administrator shall establish a Target Award Level for each Employee in its sole discretion, taking into account an Employee’s responsibility level or the position or positions held during 

4

Exhibit 10.6

the Performance Period.  The Administrator shall determine the Target Award Level for each Employee at such time or times as the Administrator determines.  
		
	5.3
	Setting the Target Award Pool.  The Target Award Pool shall equal the sum of the Target Award Levels for all Employees for a Performance Period, plus such additional amount as the Committee shall determine prior to, or contemporaneously with, the establishment of the Performance Goals.  

ARTICLE VI      DETERMINATION OF ACTUAL AWARDS
		
	6.1
	Calculation of the Actual Award Pool.  The amount of the Actual Award Pool shall be based upon the level of achievement of the Performance Goals for the Performance Period, as determined by the Committee, in its sole discretion, such that the amount of the Actual Award Pool equals the sum of the Target Award Levels for all Employees as adjusted (upward or downward) by the Committee based upon the level of achievement of the Performance Goals as determined by the Committee, plus the additional amount added to the Target Award Pool for the Performance Period by the Committee prior to, or contemporaneously with, the establishment of the Performance Goals pursuant to Section 5.3, if any.

		
	6.2
	Calculation of Actual Awards. All Actual Awards shall be one hundred percent (100%) discretionary.  The Administrator shall determine the Actual Award payable to an Employee from the Actual Award Pool for a Performance Period based upon the level of attainment of the Performance Goal and taking into account the Employee’s Individual Performance and the performance of the Employee’s reporting segment, as determined by the Administrator. Individual Performance shall be assessed by the Administrator in its sole discretion or an immediate supervisor or department head of an Employee to whom the Administrator delegates such authority.  The Administrator may determine, in its sole discretion, to pay (a) an Actual Award to an Employee that is greater than, equal to, or less than such Employee’s Target Award Level and (b) Actual Awards to Employees for a Performance Period that, in the aggregate, are equal to or less than the total amount of the Actual Award Pool.  

		
	6.3
	Award Adjustments.  No Employee shall be entitled to an Actual Award under the Plan and an Employee shall not become a Participant in the Plan until an Actual Award is made to the Employee.  The Administrator shall have the sole discretion to determine or adjust the amount, if any, of any Actual Award payable under the Plan until such Actual Award is paid.

		
	6.4
	Discretionary Awards.  Notwithstanding any provision of the Plan to the contrary, in addition to the Actual Award made to an Employee under the Plan, if any, the Administrator may pay to an Employee an additional amount, taking into account such factors as it deems appropriate and determines in its sole and absolute discretion.

5

Exhibit 10.6

ARTICLE VII      PAYMENT OF ACTUAL AWARDS
		
	7.1
	Timing and Form of Payment.  A Participant’s Actual Award shall be paid in cash as soon as administratively practicable after the end of the Performance Period.  To the extent a Participant obtains a “legally binding right” (within the meaning of Code Section 409A) to his Actual Award, such Actual Award shall be paid in cash as soon as practicable after, and no later than, March 15th following the end of the calendar year in which the Award is no longer subject to a “substantial risk of forfeiture” (within the meaning of Code Section 409A).  With respect to any Participant paid in foreign currency, the amount of any Actual Award paid to a Participant shall be based on such exchange rate as the Administrator reasonably determines.

ARTICLE VIII      ADMINISTRATION 
		
	8.1
	Administrator Authority.  The Plan shall be administered by the Administrator, which, in addition to the other powers set forth herein, shall have the full power, subject to, and within the limits of the Plan, to:

		
	(a)
	make all determinations and interpretations and approve all rules as may be necessary or advisable for the administration of the Plan, including, but not limited to, those necessary to resolve any ambiguities with respect to any of the terms and provisions of the Plan;

		
	(b)
	exercise all powers and perform such acts in connection with the Plan as are deemed necessary or appropriate to promote the best interests of the Partnership, General Partner or Affiliate;

		
	(c)
	construe and interpret the Plan and any agreement or instrument entered into under the Plan; and

		
	(d)
	establish, amend or waive rules and regulations for the Plan’s administration.

		
	8.2
	Authorized Agents. The Administrator may authorize any officer of the General Partner to execute and deliver documents on behalf of the Administrator, including administrative guidelines for this Plan.

		
	8.3
	Binding Decisions.  All determinations and decisions of the Administrator as to any disputed question arising under the Plan, including questions of construction and interpretation, shall be final, binding and conclusive upon all parties.

ARTICLE IX      AMENDMENT AND TERMINATION
		
	9.1
	The Administrator may amend, suspend, or terminate the Plan or any portion thereof at any time and for any reason or no reason. 

6

Exhibit 10.6

ARTICLE X      MISCELLANEOUS
		
	10.1
	Nontransferability.  No right or interest of any Participant in the Plan shall be assignable or transferable, or subject to any lien, directly, by operation of law or otherwise, including, but not limited to, execution, levy, garnishment, attachment, pledge and bankruptcy.  

		
	10.2
	Tax Withholding.  The Partnership, the General Partner or Affiliates, as applicable, shall have the right to deduct from all payments under the Plan any foreign, federal, state or local income or other taxes required by law to be withheld with respect to such payments.  

		
	10.3
	Employment Not Affected.  Eligibility for participation or participation in the Plan shall not confer upon an Employee any right to be retained by, or in the employ or service of, the Partnership, the General Partner or an Affiliate, and shall not interfere in any way with the right of the Partnership, General Partner or an Affiliate, as applicable, to terminate the Employee’s employment or service at any time.  

		
	10.4
	Non-uniform Determinations.  The Administrator’s determinations under the Plan (including without limitation, determinations of the persons to receive Actual Awards, the form, amount, size and timing of such payments, the terms and provisions of such payments, and the agreement evidencing same) need not be uniform and may be made selectively among persons who receive, or are eligible to receive, Actual Awards under the Plan, whether or not such persons are similarly situated.

		
	10.5
	No Fund.  The Partnership shall have no obligation to reserve or otherwise fund in advance any amounts which are or may in the future become payable under this Plan. Any funds, which the Partnership acting in its sole discretion determines to reserve for future payments under this Plan, may be commingled with other funds of the Partnership and need not in any way be segregated from other assets or funds held by the Partnership.

		
	10.6
	Successors.  All obligations of the Partnership under the Plan shall be binding upon and inure to the benefit of any successor of the Partnership, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Partnership.

		
	10.7
	Other Plans.  Nothing contained in this Plan shall prevent the Administrator or the Board from adopting other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

		
	10.8
	Employees Subject to Taxation outside the United States.  With respect to Employees who are subject to taxation in countries other than the United States, the Administrator may make Actual Awards on such terms and conditions as the Administrator deems necessary or appropriate to comply with the laws of the applicable countries, and the Administrator may create such procedures, addenda 

7

Exhibit 10.6

and subplans and make such modifications as may be necessary or advisable to comply with such laws.

8

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