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CHURCHILL DOWNS INCORPORATED
Executive Change in Control, Severance and Indemnity Agreement
THIS AGREEMENT is made and entered into as of the 1st day of October, 2019 (the “Effective Date”), by and between Churchill Downs Incorporated (hereinafter referred to as the “Company”) and Austin W. Miller (hereinafter referred to as the “Executive”).
WHEREAS, the Board has approved the Company’s entering into change in control, severance and indemnity agreements with certain key executives of the Company; and
WHEREAS, the Executive is a key executive of the Company;
NOW THEREFORE, to assure the Company that it will have the continued dedication of the Executive and the availability of the Executive’s advice and counsel notwithstanding the possibility, threat, or occurrence of a Change in Control of the Company, and to induce the Executive to remain in the employ of the Company, and for other good and valuable consideration, the Company and the Executive agree as follows:
Article 1.Establishment, Term, and Purpose
This Agreement will commence on the Effective Date and will continue in effect for a four (4) year term, until the fourth anniversary of the Effective Date.  Upon the expiration of the fourth anniversary of the Effective Date (and each applicable anniversary thereafter, to the extent the Agreement is extended as provided herein), the term of this Agreement will be extended automatically for one (1) additional year, unless either party to this Agreement delivers written notice at least twelve (12) months prior to such anniversary to the other party that this Agreement will not be extended.  In such case, this Agreement will terminate at the end of the term or extended term.  Executive hereby acknowledges, for avoidance of doubt, that any termination of this Agreement vis-a-vis notice provided pursuant to this Article 1 shall not constitute an act subject to Section 2.14 or Article 3.
However, in the event a Change in Control occurs during the original or any extended term, this Agreement will remain in effect for the longer of: (i) twenty-four (24) months beyond the month in which such Change in Control occurred; or (ii) until all obligations of the Company hereunder have been fulfilled, and until all benefits required hereunder have been paid to the Executive.
Article 2.Definitions
Whenever used in this Agreement, the following terms will have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized.
2.1Agreement - see the recitals to this Agreement.

2.2Accrued Obligations means the aggregate of (i) an Executive’s earned but unpaid Base Salary through the Executive’s date of termination; (ii) payment in respect of any paid time off days accrued but unused through the Executive’s date of termination, to the extent provided by Company policy; (iii) reimbursement for all business expenses properly incurred in accordance with Company policy prior to the Executive’s date of termination and not yet reimbursed by the Company; and (iv) subject to Section 3.3, any earned but unpaid annual bonus in respect of any of the Company’s fiscal years preceding the fiscal year in which the termination occurs (provided, however, that if Executive’s termination is by the Company for Cause and such event(s) and/or action(s) that constitute Cause are materially and demonstrably injurious to the business or reputation of the Company, then no payment will be made pursuant to this clause (iv)).
2.3Base Salary means the salary of record paid to an Executive as annual salary, excluding amounts received under incentive or other bonus plans, whether or not deferred.
2.4Board means the Board of Directors of the Company.
2.5Cause for termination by the Company of Executive’s employment with the Company means any of the following:
(a)the willful and continued failure of Executive to perform substantially his duties to the Company (other than any such failure resulting from incapacity due to disability), after a written demand to cure such failure (the “Demand to Cure”) is delivered to Executive by the Chief Executive Officer or the Board, as the case may be, which specifically identifies the manner in which the Board believes that Executive has not substantially performed his duties;
(b)Executive’s conviction of, or plea of guilty or no contest to (A) a felony or (B) a misdemeanor involving dishonesty or moral turpitude; or
(c)the willful engaging by Executive in illegal conduct or gross misconduct which is materially and demonstrably injurious to the business or reputation of the Company.
For purposes of this definition, no act or failure to act, on the part of Executive, shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was in the best interests of the Company.  Any act, or failure to act, based upon specific authority given pursuant to a resolution duly adopted by the Board or upon instructions of the Chief Executive Officer or the Board, as the case may be, or based upon the advice of counsel of the Company which Executive honestly believes is within such counsel’s competence shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company.  The Company shall give written notice to Executive of the termination for Cause.  Such notice shall state in detail the particular act or acts or the failure or failures to act that constitute the grounds on which the Cause termination is based and such notice shall be given within six (6) months of the occurrence of, or, if later, the Company’s actual knowledge of, the act or acts or the failure or failures to act which constitute the grounds for Cause.  Executive shall have sixty (60) days upon receipt of the Demand to Cure in which to cure such conduct; to the extent such cure is possible.
2.6Change in Control means the first to occur of the following events:

(a)the acquisition, directly or indirectly, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% of either the then outstanding voting securities of the Company (the “Outstanding Company Common Stock”) or the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however that for purposes of this subsection (a), the following acquisitions shall not constitute a Change in Control: (w) any acquisition directly from the Company, (x) any acquisition by the Company or any of its subsidiaries, (y) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (z) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (c) of this definition;
(b)individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

(c)consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of assets of another entity (a “Corporate Transaction”), in each case, unless, immediately following such Corporate Transaction, (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than 50% of, respectively, the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Corporate Transaction or employee benefit plan (or related trust) of the Company or such corporation resulting from such Corporate Transaction) beneficially owns, directly or indirectly, 50% or more of, respectively, the then-Outstanding Company Common Stock resulting from such Corporate Transaction or the Outstanding Company Voting Securities resulting from such Corporate  Transaction, except to the extent that such ownership existed prior to the Corporate Transaction, and (C) at least a majority of the members of the Board resulting from the Corporate Transaction were members of the Incumbent Board at the time of the execution of the initial plan or action of the Board providing for such Corporate Transaction; or
(d)approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.
2.7Code means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.
2.8Common Stock means the common stock, no par value, of the Company.
2.9Company - see the recitals to this Agreement.
2.10Disability means that Executive becomes “disabled” within the meaning of Section 409A(a)(2)(C) of the Code or any successor provision and the applicable regulations thereunder.
2.11Effective Date - see recitals to this Agreement.
2.12Exchange Act means the Securities Exchange Act of 1934.
2.13Executive - see recitals to this Agreement.
2.14Good Reason for termination by Executive of Executive’s employment means the occurrence (without Executive’s express written consent) of any one of the following acts by the Company or failures by the Company to act:
(a)the assignment to Executive of any duties inconsistent in any material respect with the position of Senior Vice President, Gaming Operations (including status, office, title and reporting requirements), or the authority, duties or responsibilities of the Senior Vice President, Gaming Operations, or any other diminution in any material respect in such position, authority, duties or responsibilities unless agreed to by Executive;
(b)the Company’s requiring Executive to be based at, or perform his principal functions at, any office or location other than a location within 35 miles of the Main Office unless such other location is closer to Executive’s then-primary residence than the Main Office;
(c)a reduction in Base Salary or annual incentive target opportunity under the Executive Annual Incentive Plan or other such plan; and
(d)a material reduction in Executive’s welfare benefits plans, qualified retirement plan, or paid time off benefit unless other senior executives suffer a comparable reduction.
“Good Reason” for Executive’s termination of employment will exist only if (i) Executive gives written notice to the Company of his intention to terminate his employment on account of a Good Reason, with the notice stating in detail the particular act or acts or the failure or failures to act that constitute the grounds on which Executive’s Good Reason termination is based and given within six (6) months of the occurrence of the act or acts or the failure or failures to act which constitute the grounds for Good Reason, (ii) the Company fails to cure the conduct within sixty (60) days following receipt of Executive’s written notice, and (iii) Executive terminates 

employment with the Company effective not later than sixty (60) days after the end of the Company’s cure period.
2.15Main Office means 600 N. Hurstbourne Parkway, Ste. 400, Louisville, Kentucky.
2.16Taxes means the incremental United States federal, state and local income, excise and other taxes payable by Executive with respect to any applicable item of income.
2.17Termination of Employment means a termination by the Company or by Executive of Executive’s employment with the Company that constitutes a separation from service under Code Section 409A.
Article 3. Severance Benefits
3.1Right to Severance Benefits.  The Executive will be entitled to receive from the Company Severance Benefits, as described in this Article 3 herein, if the Executive satisfies the conditions set forth in this Article 3.  Except with respect to the Accrued Obligations (and subject to Section 3.3, as applicable), in no event herein, except as may be required by applicable federal and/or state law, shall the Executive be entitled to receive any other Severance Benefits if the Executive’s employment is terminated (i) for Cause or (ii) due to a voluntary termination without Good Reason.
3.2Severance Benefits.
(a)Termination Without Cause by the Company or Voluntary Resignation by Executive for Good Reason.  If Executive is terminated by the Company other than for Cause, Disability or death, or if Executive voluntarily resigns for Good Reason, Executive shall receive: (i) the Accrued Obligations; and (ii) subject to Section 3.3, (A) cash payments equal  to the  product of 1.5  times the sum of (x) Executive’s Base Salary plus (y) Executive’s target bonus for the year of the Termination of Employment, payable in equal installments over the 18 months following Termination of Employment, (B) treatment of all equity-based awards per the terms of the applicable plan, award or agreement, and (C) a lump sum amount equal to the total premiums for medical, dental and vision benefits for a three month period which the Executive may, but is not required to, use to pay for COBRA  continuation  coverage, if applicable.  Except for amounts subject to Section 3.3, the remaining Accrued Obligations shall be paid to Executive in a lump sum amount within sixty (60) days following the Executive’s date of termination.

(b)Termination following a Change in Control.  If, during the 2-year period following a Change in Control, Executive is terminated by the Company other than for Cause, Disability or death, or if Executive voluntarily resigns for Good Reason, Executive shall receive: (i) the Accrued Obligations; and (ii) subject to Section 3.3, (A) cash payments equal to the product of 2 times the sum of (x) Executive’s Base Salary plus (y) Executive’s target bonus for the year of the Termination of Employment, payable in a lump sum on the sixtieth (60th) day following such Termination of Employment, (B) treatment of all equity-based awards per the terms of the applicable plan, award or agreement, and (C) a lump sum amount equal to the total premiums for medical, dental and vision benefits for a three month period which the Executive may, but is not required to, use to pay for COBRA continuation coverage, if applicable. Except for amounts subject to Section 3.3, the remaining Accrued Obligations shall be paid to Executive in a lump sum amount within sixty (60) days following the Executive’s date of termination.
(c)Death.  Following a Termination of Employment for death, Executive’s estate shall receive: (i) the Accrued Obligations; and (ii) subject to Section 3.3, (A) a pro-rata bonus, if any, for the year of death, based on the target bonus for which Executive was eligible for such year, and paid when bonuses under such applicable bonus plans are normally paid, (B) treatment of all equity-based awards per the terms of the applicable plan, award or agreement, (C) all other benefits and payments per the applicable plan or program, and (D) life insurance benefits paid per such applicable plans. Except for amounts subject to Section 3.3, the remaining Accrued Obligations shall be paid to Executive in a lump sum amount within sixty (60) days following the Executive’s date of termination.  All other accrued and vested benefits, if any; due Executive following a Termination of Employment for death shall be determined in accordance with the plans, policies, and practices of the Company.
(d)Disability.  Following a Termination of Employment for Disability, Executive shall receive: (i) the Accrued Obligations; and (ii) subject to Section 3.3, (A) a pro-rata bonus, if any, for the year of Termination of Employment, based on the target bonus for which Executive was eligible for such year, and paid when bonuses under the applicable bonus plans are normally paid, (B) treatment of all equity-based awards per the terms of the applicable plan, award or agreement, (C) all  other  benefits  and  payments  per  the  applicable  plan  or  program, and (D) short-term and long-term disability benefits per the applicable plans. Except for amounts subject to Section 3.3, the remaining Accrued Obligations shall be paid to Executive in a lump sum amount within sixty (60) days following the Executive’s date of termination.  All other accrued and vested benefits, if any; due Executive following a Termination of Employment for Disability shall be determined in accordance with the plans, policies, and practices of the Company.

3.3Release.  Notwithstanding any other provision of this Agreement to the contrary, Executive acknowledges and agrees that any and all payments to which Executive is entitled under this Article 3, which are described as being subject to this Section 3.3  are conditioned upon and shall not be payable unless (A) Executive, or, if applicable, his or her estate’s personal representative, executes a general release and waiver, in such reasonable and customary form as shall be prepared by the Company, of  all claims Executive may have against the Company and its directors, officers, subsidiaries and affiliates, except as to (i) matters covered by provisions of this Agreement that expressly survive the termination of this Agreement and (ii) rights to which Executive is entitled by virtue of his participation in the employee benefit plans, policies and arrangements of the Company, within the minimum time period required under applicable state and federal laws, or if no such period, ten business days following the date of Executive’s termination, and (B) Executive, or, if applicable, his or his estate’s personal representative, has not revoked such release agreement within the time permitted under applicable law.  Payments subject to this Section 3.3 shall commence or be made, as applicable, on the sixtieth (60th) day after the Termination of Employment, with any payments scheduled to occur between the Termination of Employment and such sixtieth (60th) day provided on such day.
3.4Withholding of Taxes.  The Company will be entitled to withhold from any amounts payable under this Agreement all Taxes as may be legally required (including, without limitation, any United States federal taxes and any other state, city, or local taxes).
Article 4. Covenants
(a)Confidentiality.  Executive agrees that Executive will not at any time during Executive’s employment with the Company or thereafter, except in performance of Executive’s obligations to the Company hereunder, disclose, either directly or indirectly, any Confidential Information (as hereinafter defined) that Executive may learn by reason of his association with the Company.  The term “Confidential Information” shall mean any past, present, or future confidential or secret plans, programs,  documents,  agreements, internal management reports, financial information, or other material relating to the business, strategies, services, or activities of the Company, including, without limitation, information with respect to the Company’s operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, including leases, regulatory status, compensation paid to employees, or other terms of employment, and trade secrets, market reports, customer investigations, customer lists, and other similar information that is proprietary information of the Company; provided, however, the term “Confidential Information” shall not include any of the above forms of information which has become public knowledge, unless such Confidential Information became public knowledge due to any act or acts by Executive or his representative(s) in violation of this Agreement.  Notwithstanding the foregoing, Executive may disclose such Confidential Information when required to do so by a court of competent jurisdiction, by any governmental agency having supervisory authority over the business of the Company and/or its affiliates, as the case may be, or by any administrative body or legislative body (including a committee thereof) with jurisdiction to order Executive to divulge, disclose or make accessible such information; provided, further, that in the event that Executive is ordered by any such court or other government agency, administrative body, or legislative body to disclose any Confidential Information, Executive shall (i) promptly notify the Company of such order, (ii) at the reasonable written request of the Company, diligently contest such order at the sole expense of the Company as expenses occur, and (iii) at the reasonable written request of the Company, seek to obtain, at the sole expense of the Company, such confidential treatment as may be available under applicable laws for any information disclosed under such order.

(b)Non-Solicit.  During Executive’s employment and for two (2) years immediately following a Termination of Employment for any reason, Executive shall not, without the prior written consent of the Company, solicit or induce any then­ existing employee of the Company or any of its subsidiaries to leave employment with the Company or any of its subsidiaries or contact any then-existing customer or vendor under contract with the Company or any of its subsidiaries for the purpose of obtaining business similar to that engaged in, or received (as appropriate), by the Company, except that Executive shall not be precluded from (i) hiring any such employee who has been terminated by the Company or its subsidiaries  prior  to  commencement   of  employment  discussions  between  the Executive or his/her subsequent employer and such employee, (ii) employing or contacting any such person who contacts Executive or his/her subsequent employer on his or her own initiative without any otherwise  prohibited solicitation, or (iii) employing or contacting any person as a result of general solicitation not specifically directed at the Company, any of its subsidiaries or any of its employees.
(c)Cooperation.  Executive agrees that during his employment or following a Termination of Employment for any reason, Executive shall, upon reasonable advance notice, assist and cooperate with the Company as is reasonable with regard to any investigation or litigation related to a matter or project in which Executive was involved during Executive’s employment.  The Company shall reimburse Executive for all reasonable and necessary expenses related to Executive’s services under this Section 4(c) (i.e., travel, lodging, meals, telephone and overnight courier) within ten (10) business days of Executive submitting to the Company appropriate receipts and expense statements.
(d)Survivability.  The duties and obligations of Executive pursuant to this Section 4 shall survive the termination of this Agreement and Executive’s Termination of Employment for any reason.
(e)Remedies.  Executive acknowledges that the protections of the Company set forth in this Section 4 are fair and reasonable.  Executive agrees that remedies at law for a breach or threatened breach of the provisions of this Section 4 would be inadequate and, therefore, the Company shall be entitled, in addition to any other available remedies, without posting a bond, to equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction, or any other equitable remedy that may be then available.
(f)Limitation.  If the duration, scope, or nature of any restriction on business activity covered by any provision of Section 4(b) above is in excess of what is valid and enforceable under applicable law, such restriction shall be construed to limit duration, scope or activity to an extent that is valid and enforceable, with such extent to be the maximum extent possible under applicable law. For Section 4(b) above, Executive hereby acknowledges that such Section shall be given the construction which renders its provisions valid and enforceable to the maximum extent, not exceeding its express terms, possible under applicable law.

Article 5. Tax Adjustment Payment
5.1Tax Adjustment Payment.  In the event that the Executive becomes entitled to Severance Benefits or any other payment or benefit under this Agreement, or under any other agreement with or plan of the Company (in the aggregate, the “Total Payments”), whether or not the Executive has terminated employment with the Company, if all or any part of the Total Payments will be subject to the tax imposed by Section 4999 of the Code (or any similar tax that may hereafter be imposed) (the “Excise Tax”), the Total Payments shall be reduced (but not below zero) such that the value of the Total Payments shall be one dollar ($1) less than the maximum amount of payments which the Executive may receive without becoming subject to the tax imposed by Section 4999 of the Code; provided, however, that the foregoing limitation shall not apply in the event that it is determined that the Total Payments on an after-tax basis (i.e., after payment of federal, state, and local income taxes, penalties, interest, and Excise Tax) if such limitation is not applied would exceed the after-tax benefits to the Executive if such limitation is applied.  The Executive shall bear the expense of any and all Excise Taxes due on any payments that are deemed to be “excess parachute payments” under Section 280G of the Code.
5.2Tax Computation.  The determination of whether any of the Total Payments will be subject to the Excise Tax and the assumptions to be used in arriving at such determination, shall be made by a nationally recognized certified public accounting firm that does not serve as an accountant or auditor for any individual, entity or group effecting the Change in Control as designated by the Company (the “Accounting Firm”).  The Accounting Firm will provide detailed supporting calculations to the Company and the Executive within fifteen (15) business days of the receipt of notice from the Executive or the Company requesting a calculation hereunder.  All fees and expenses of the Accounting Firm will be paid by the Company.
Article 6.  The Company’s Payment Obligation
The Company’s obligation to make the payments and the arrangements provided for herein will be absolute and unconditional, and will not be affected by any circumstances, including, without limitation, any offset, counterclaim, recoupment, defense, or other right which the Company may have against the Executive or anyone else.  All amounts payable by the Company hereunder will be paid without notice or demand.
The Executive will not be obligated to seek other employment in mitigation of the amounts payable or arrangements made under any provision of this Agreement, and the obtaining of any such other employment will in no event effect any reduction of the Company’s obligations to make the payments and arrangements required to be made under this Agreement.
Notwithstanding anything in this Agreement to the contrary, if Severance Benefits are paid under this Agreement, no severance benefits under any program of the Company, other than benefits described in this Agreement, will be paid to the Executive.
Article 7. Indemnification

7.1Indemnity of Executive.  To the fullest extent permitted by law, and subject only to the exclusions set forth in Sections 7.2 and 7.10 of this Agreement, the Company hereby agrees to hold harmless and indemnify the Executive from and against any and all reasonable costs and expenses (including, but not limited to, attorneys’ fees) and any liabilities (including, but not limited to, judgments, fines, penalties and reasonable settlements) paid by or on behalf of, or imposed against, the Executive in connection with any threatened, pending or completed claim, action, suit or proceeding, whether civil, criminal, administrative, investigative or other (including any appeal relating thereto), whether formal or informal, and whether made or brought by or in the right of the Company or otherwise, in which the Executive is, was or at any time becomes a party or witness, or is threatened to be made a party or witness, or otherwise, by reason of the fact that the Executive is, was or at any time becomes a director, officer, employee or agent of the Company or, at the Company’s request, a director, officer, partner, manager, trustee, employee or agent of another corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise.
7.2Limitations on Indemnity.  No Indemnity pursuant to Section 7.1 of this Agreement shall be paid by the Company:
(a)if a court of competent jurisdiction renders a final adjudication on the merits, in an action, suit or proceeding in which the Executive is a party, that such indemnification is prohibited by law;
(b)in connection with any transaction with respect to which a court of competent jurisdiction renders a final adjudication on the merits, in an action, suit or proceeding in which the Executive is a party, (i) that the Executive’s personal financial interest was in conflict with the financial interests of the Company or its shareholders and (ii) that the Executive derived an improper personal benefit;
(c)on account of acts or omissions of the Executive to the extent a court of competent jurisdiction renders a final adjudication on the merits, in an action, suit or proceeding in which the Executive is a party, that such acts or omissions (i) were not in good faith, or (ii) involved intentional misconduct, or (iii) were known to the Executive to be a violation by law;
(d)in respect of any liability to the extent that a court of competent jurisdiction renders a final adjudication on the merits, in an action, suit or proceeding in which the Executive is a party, that such liability arises under any federal or state statute providing for personal liability by reason of the fact that the Executive is or was a director or officer of the Company, including, by way of example and not limitation, liability under Section 16(b) of the Securities Exchange Act of 1934, as amended, but excluding any liability resulting from actions taken or omitted by the Executive as a fiduciary of an employee benefit plan of the Company to the extent otherwise indemnifiable hereunder;
(e)to the extent and only to the extent that a majority of the Board of Directors of the Company or a duly designated  committee  thereof,  in  either  case  consisting entirely of directors who are not at the time parties to the claim, action, suit or proceeding against the Executive, determines that the amount of expenses and/or settlements for which indemnification is sought is unreasonable, as  determined  by an informal survey of the outcomes in similar cases, if any, and/or the Company’s previous dealings in other matters or offers of settlement, if applicable; or

(f)in connection with any claim, action, suit or proceeding if such claim, action, suit or   proceeding  was  initiated by the  Executive or his personal or legal representative,  or   involved  the  voluntary solicitation   or  intervention  by  the Executive or his personal or legal representative (other than an action to enforce indemnification rights or an action initiated with the approval of a majority of the Board of Directors).
7.3Continuation of Indemnity.  All agreements and obligations of  the Company contained  in this Article 7 shall continue during the period the Executive serves in any capacity entitling the Executive to indemnification under this Article 7 and shall continue thereafter so long as the Executive shall be subject to  any possible claim or  threatened,  pending  or  completed  action, suit or proceeding, whether civil, criminal, administrative, or investigative  or  other  including  any appeal relating thereto), whether formal or informal, arising as a result of acts  or  omissions occurring during the period the Executive served as a director or officer of the Company.
7.4Notification of Claim.  It shall be a condition precedent to indemnification under this Article 7 that, within thirty days after receipt by the Executive of actual notice that the Executive is or will be a party, witness or otherwise involved in any threatened or pending action, suit or proceeding described in Section 7.1, the Executive shall have notified the Company in writing of the assertion or commencement thereof.  The omission to so notify the Company will not relieve it from any liability which it may have to the Executive otherwise than under this Article 7.
7.5Advancement of Costs and Expenses.  The costs and expenses (including, but not limited to, attorneys’ fees) incurred by the Executive in investigating, defending, being a witness in, appealing or otherwise participating in any threatened or pending claim or any threatened or pending action, suit or proceeding described in Section 7.1 shall, at the written request of the Executive, be paid by the Company in advance of final judgment or settlement with the understanding, undertaking and agreement hereby made and entered into by the Executive and the  Company that the Executive shall, if it is ultimately determined  in accordance with Section or pursuant to Section 7.10 that the Executive is not entitled to be indemnified, or was not entitled to  be fully indemnified,  repay to the Company such amount, or the appropriate  portion thereof, so paid or advanced. Such advancements shall be made within ten business days of written request therefor by the Executive.

7.6Enforcement.  If a claim for payment under this Article 7 is not paid in full by the Company within ninety days after a written demand has been delivered by the Executive to the Company, or within thirty days after delivery of a written demand by the Executive to the Company based upon a final and unappealable judgment of a court of competent jurisdiction, the Executive may at any time thereafter bring suit against the Company to recover the unpaid amount of the claim and, if successful in whole or in part, the Executive shall also be entitled to be paid all costs and expenses (including, but not limited to, ‘attorneys’ fees) incurred by the Executive in prosecuting such suit.  In any suit brought by the Executive to enforce this Article 7, the burden of proof shall be on the Company to establish that the Executive is not entitled to the relief sought under this Article 7.
7.7Partial Indemnity.  If the Executive is entitled under any provision of this Article 7 to indemnification by the Company for some or a portion of the costs, expenses, judgments, fines, penalties and amounts paid in settlement, but not for the total amount thereof, the Company shall nevertheless indemnify the Executive for the portion thereof to which the Executive is entitled.
7.8Non-exclusivity.  The rights of the Executive under this Article 7 shall be in addition to any other rights the Executive may have under the Articles of Incorporation or Bylaws of the Company or by agreement, vote of shareholders or disinterested directors, as a matter of law or otherwise.
7.9Subrogation.  In the event of any payment under this Article 7, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Executive, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents as may be necessary to enable the Company effectively to bring suit to enforce such rights.
7.10No Duplication of Payments.  The Company shall not be liable under this Article 7 to make any payment to the extent the Executive has otherwise actually received payment (under any insurance policy, bylaw or otherwise) of the amounts otherwise payable by the Company under this Article 7.  The Executive shall use his best efforts to collect from all third parties any amounts otherwise payable by the Company under this Article 7.  If the Executive is entitled to but has not received payment from a third party (under an insurance policy or otherwise) of amounts otherwise payable by the Company under this Article 7, the Company shall nevertheless pay the Executive such amounts with the understanding, undertaking and agreement hereby made and entered into by the Executive and the Company that the Executive will repay to the Company such amounts to the extent they are ultimately paid to the Executive by such third party.
7.11Directors’ and Officers’ Liability Insurance.  The Company agrees to maintain in effect throughout the term of Executive’s employment with the Company and for a period of two years thereafter, directors’ and officers’ liability insurance policies for the benefit of the Executive in a form at least as comprehensive as, and in an amount that is at least equal to, that maintained by the Company at such time for any officer or director of the Company.
Article 8. Miscellaneous
8.1Employment Status.  The employment of the Executive by the Company is “at will,” and may be terminated by either the Executive or the Company at any time, subject to applicable law.

8.2Resolution of Disputes and Reimbursement of Legal Costs.  Except as  otherwise provided in Article 4, the Company and Executive agree that any controversy or  claim arising out of or relating to this Agreement or the breach thereof shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules then in effect.  Venue for any arbitration pursuant to this Agreement will lie in Louisville, Kentucky.  Any award entered by the arbitrator(s) shall be final, binding and nonappealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction.  This arbitration provision shall be specifically enforceable.  Each party shall be responsible for its own expenses relating to the conduct of the arbitration (including reasonable attorneys’ fees and expenses) and shall share the fees of the American Arbitration Association and the arbitrator(s), if applicable, equally.
8.3Governing Law.  This Agreement will be governed by, and interpreted in accordance with, the laws of the Commonwealth of Kentucky applicable to agreements made and to be wholly performed within the Commonwealth of Kentucky, without regard to the conflict of laws provisions of any jurisdiction which would cause the application of any law other than that of the Commonwealth of Kentucky.
8.4Entire Agreement/Amendments.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, negotiations, representations or proposals, whether written or oral.  This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto.  Articles 3 and 4 of this Agreement shall survive the termination of Executive’s employment with the Company, except as otherwise specifically stated therein.
8.5Neutral Interpretation.  This Agreement constitutes the product of the negotiation of the parties hereto and the enforcement of this Agreement shall be interpreted in a neutral manner, and not more strongly for or against any party based upon the source of the draftsmanship of the Agreement.  Each party has been provided ample time and opportunity to review and negotiate the terms of this Agreement and consult with legal counsel regarding the Agreement.
8.6No Waiver.  The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s  rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.
8.7Severability.  In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.
8.8Successors.
(a)This Agreement is personal to Executive and shall not be assignable by Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.

(b)This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.  The Company shall require any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation, or otherwise) to all or a substantial portion of its business and/or assets, by agreement in form and substance reasonably satisfactory to Executive, expressly to assume and agree to perform this Agreement  in  the same manner  and  to  the same extent that the Company would be required to perform this Agreement if no such succession had taken place.  Regardless of whether such an agreement is executed, this Agreement shall be binding upon any successor of the Company and such successor shall be deemed the “Company” for purposes of this Agreement.
8.9Notice.   For  the  purpose  of  this  Agreement,  notices  and  all  other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally, if delivered by overnight courier service, if sent by facsimile transmission or if mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses or sent via facsimile to the respective facsimile numbers, as the case may be, as set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only  upon  receipt; provided,  however, that  (i)  notices sent by personal  delivery  or  overnight courier shall be deemed given when delivered; (ii) notices sent by facsimile transmission shall be deemed given upon the sender’s receipt of confirmation of complete transmission, and (iii) notices sent by United States registered mail shall be deemed given two days after the date of deposit in the United States mail.
If to the Company, to:
Churchill Downs Incorporated
Attn: Senior Vice President, Human Resources
600 N. Hurstbourne Parkway, Ste. 400
Louisville, KY 40222
with copy to:
Churchill Downs Incorporated
Attn: General Counsel
600 N. Hurstbourne Parkway, Ste. 400
Louisville, KY 40222
If to Executive, to
Austin W. Miller, at the mailing address registered in the CDI Human Resources Information System.
8.10Counterparts and Signatures.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Signatures delivered by facsimile or PDF file shall constitute original signatures.

8.11Code Section 409A.  It is intended that any amounts payable under this Agreement and the Company’s and Executive’s exercise of authority or discretion hereunder shall comply with Code Section 409A (including the Treasury regulations and other published guidance relating thereto) so as not to subject Executive to the payment of any interest or additional tax imposed under Code Section 409A.  To the extent any amount payable under this Agreement would trigger the additional tax imposed by Code Section 409A, the Agreement shall be modified to avoid such additional tax.  Notwithstanding the foregoing, to the extent required in order to avoid accelerated taxation and/or tax penalties under Code Section 409A and the rules and regulations thereunder (“Section 409A”), if Executive is a “specified employee” (as defined under Section 409A) as of the date of his “separation from service” (as defined under Section 409A) from the Company, then any payment of benefits scheduled to be paid by the Company to Executive during the first six (6) month period following the date of a termination of employment hereunder that constitutes deferred compensation under Code Section 409A shall not be paid until the earlier of (a) the expiration of the six (6) month period measured from the date of Executive’s “separation from service” and (b) the date of Executive’s death.  All payments and benefits that are delayed pursuant to the immediately preceding sentence shall be paid to Executive in a lump sum as soon as practicable following the expiration of such period (or if earlier, upon Executive’s death) but in no event later than thirty (30) days following such period.  To the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, no amount or benefit that is payable upon a termination of employment or services from the Company shall be payable unless such termination also meets the requirements of a “separation from service” under Section 409A.  Each payment, including each installment payment, made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A.  As such, and to the extent applicable and permissible under Section 409A, each such “separate payment” shall be made in a manner so as to satisfy Section 409A and Treasury Regulations promulgated thereunder, including the provisions which exempt certain compensation from Section 409A, including but not limited to Treasury Regulations Section l.409A-l(b)(4) regarding payments made within the applicable 2 1⁄2 month period and Section l.409A-l(b)(9)(iii) regarding payments made only upon an involuntary separation from service.  In addition, the parties shall cooperate fully with one another to ensure compliance with Section 409A, including, without limitation, adopting amendments to arrangements subject to Section 409A and operating such arrangements in compliance with Section 409A.
[Remainder of page intentionally left blank.]

IN WITNESS WHEREOF, the parties have executed this Agreement on this 1st day October, 2019.
						
	CHURCHILL DOWNS INCORPORATED	EXECUTIVE:
	By:     /s/ Charles G. Kenyon                              
	    /s/ Austin W. Miller                              
	Name:    Charles G. Kenyon                              
	
	Its: Senior Vice President, Human ResourcesExhibit 4.1

      

      

      Execution Copy

      

      

      *This Instrument Grants a Security Interest by a Public Utility

      

      

      This instrument was prepared by

      

      

      	 	
              /s/ Ira G. Megdal

            
	 	
              Ira G. Megdal, Esquire

            

      

      

      MORTGAGE

       

      

      
        

       

      

      ELIZABETHTOWN GAS COMPANY

      

      

      TO

      

      

      WILMINGTON TRUST, NATIONAL ASSOCIATION,

      Trustee

                                                                                                       

      

      

      

      SECOND SUPPLEMENTAL INDENTURE

      

      

      Dated as of September 27, 2019

                                                                                                       

      

      

      Providing for the Issuance of First Mortgage Bonds,

      Series 2019A

      

      

      and

      

      

      Supplementing the First Mortgage Indenture

      Dated as of July 2, 2018

                                                                                                       

      

      

      This Instrument Contains After-Acquired Property Provisions

       

      

      
        
 

      
        

        
          

        

      

      SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”), dated as of September 27, 2019, between ELIZABETHTOWN

          GAS COMPANY, a corporation organized and subsisting under the laws of the State of New Jersey (the “Company”), and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, as Trustee (the “Trustee”).

      

      

      RECITALS

      

      

      The Company has heretofore duly executed and delivered to the Trustee that certain First Mortgage Indenture dated as of July 2, 2018 (the “Original Indenture,” as amended and supplemented by the First Supplemental Indenture dated as of December 20, 2018, and as further amended and supplemented by this
        Second Supplemental Indenture, the “Indenture”) providing for the issuance by the Company from time to time of its bonds, notes or other evidence of
        indebtedness to be issued in one or more series (in the Original Indenture and herein called the “Securities”) and to provide security for the payment of the
        principal of and premium, if any, and interest, if any, on the Securities.

      

      

      The Original Indenture granted and conveyed, and this Second Supplemental Indenture grants and conveys, unto the Trustee, upon the trusts and for
        the uses and purposes specifically set forth in the Original Indenture, certain real estate, franchises and other property therein described or which might be thereafter acquired by the Company, to secure the payment of the principal of and
        premium, if any, and interest, if any, on the Securities from time to time issued thereunder (including pursuant to any supplemental indentures thereto, such as this Second Supplemental Indenture).

      

      

      The Company, in the exercise of the power and authority conferred upon and reserved to it under the provisions of the Original Indenture and
        pursuant to appropriate resolutions of the Board of Directors, has duly determined to make, execute and deliver to the Trustee this Second Supplemental Indenture to the Original Indenture as permitted by Sections 2.1, 3.1 and 14.1 of the Original
        Indenture in order to establish the form and terms of, and to provide for the creation and issuance of, a series of Securities (first mortgage bonds) under the Indenture in an aggregate principal amount of $145,000,000 (the “Series 2019A Bonds”). The Series 2019A Bonds will be issued in four Tranches, as follows: (a) 2.84% First Mortgage Bonds, Series 2019A-1, due September 27, 2029 in the aggregate
        principal amount of $40,000,000 (the “Series 2019A-1 Bonds”); (b) 2.84% First Mortgage Bonds, Series 2019A-2, due October 29, 2029 in the aggregate principal
        amount of $35,000,000 (the “Series 2019A-2 Bonds”); (c) 2.94% First Mortgage Bonds, Series 2019A-3, due November 26, 2031 in the aggregate principal amount of
        $25,000,000 (the “Series 2019A-3 Bonds”); and (d) 2.94% First Mortgage Bonds, Series 2019A-4, due December 27, 2031 in the aggregate principal amount of
        $45,000,000 (the “Series 2019A-4 Bonds”; and together with the Series 2019A-1 Bonds, the Series 2019A-2 Bonds, and the Series 2019A-3 Bonds, constitute the
        Series 2019A Bonds).

      

      

      All things necessary to make the Series 2019A Bonds, when executed by the Company and authenticated and delivered by the Trustee or any
        Authenticating Agent and issued upon the terms and subject to the conditions hereinafter and in the Original Indenture set forth against payment therefor the valid, binding and legal obligations of the Company and to make this Second Supplemental
        Indenture a valid, binding and legal agreement of the Company, have been done.

       

      
        

        
          

        

      

      
      Pursuant to Section 14.1 of the Original Indenture, the Company and the Trustee are authorized to execute and deliver this Second Supplemental
        Indenture. The Company has requested and hereby requests that the Trustee join with the Company in the execution of this Second Supplemental Indenture and the Company has provided the Trustee with a Board Resolution authorizing the execution of and
        approving this Second Supplemental Indenture.

      

      

      NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH that, in order to establish the terms of a series of Securities and to secure the
        payment thereon equally and ratably with all Securities Outstanding from time to time under the Indenture, and for and in consideration of the premises and of the covenants contained in the Original Indenture and in this Second Supplemental
        Indenture and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, it is mutually covenanted and agreed as follows:

      

      

      ARTICLE 1.

      TITLE, FORM AND TERMS OF SERIES 2019A BONDS

      

      

      Section 1.1          Title of Bonds. This Second Supplemental Indenture hereby creates a series of Securities
            designated as “Elizabethtown Gas Company First Mortgage Bonds, Series 2019A,” which shall be issued in four Tranches designated as: (a) “2.84% First Mortgage Bonds, Series 2019A-1, due September 27, 2029”; (b) “2.84% First Mortgage Bonds,
            Series 2019A-2, due October 29, 2029”; (c) “2.94% First Mortgage Bonds, Series 2019A-3, due November 26, 2031”; and (d) “2.94% First Mortgage Bonds, Series 2019A-4, due December 27, 2031.” For purposes of the Indenture, the Series 2019A Bonds
            shall constitute a single Series of Securities and each of the Series 2019A-1 Bonds, the Series 2019A-2 Bonds, the Series 2019A-3 Bonds and the Series 2019A-4 Bonds shall be a Tranche of the Series 2019A Bonds.

      

      

      Section 1.2          Amount of Series 2019A Bonds. The Series 2019A Bonds shall be limited to an aggregate principal
            amount of $145,000,000, allocated among the Tranches of the Series 2019A Bonds as follows: Series 2019A-1 Bonds in the aggregate principal amount of $40,000,000; Series 2019A-2 Bonds in the aggregate principal amount of $35,000,000; Series
            2019A-3 Bonds in the aggregate principal amount of $25,000,000; and Series 2019A-4 Bonds in the aggregate principal amount of $45,000,000, except for Series 2019A Bonds authenticated and delivered upon registration of transfer of, or in
            exchange for, or in lieu of, other Series 2019A Bonds of the same Tranche pursuant to Sections 3.4, 3.5, 3.6, 5.6 or 14.6 of the Original Indenture and except for any Series 2019A Bonds which, pursuant to Section 3.3 of the Original Indenture,
            are deemed never to have been authenticated and delivered thereunder.

      

      

      Section 1.3          Form and Terms of the Series 2019A Bonds. The form and terms of the Series 2019A Bonds pursuant
            to the authority granted by this Second Supplemental Indenture in accordance with Sections 2.1, 3.1 and 14.1 of the Original Indenture are set forth herein.

      

      

      The Series 2019A Bonds shall be registered bonds without coupons in the denominations of $100,000 and integral multiples of $1,000
        in excess thereof, appropriately numbered. The Series 2019A Bonds shall be issued in certificated form only and each Series 2019A Bond shall be registered in the name of the Holder thereof (or in the name of such Holder’s nominee). The Series 2019A
        Bonds, when duly executed and issued by the Company and authenticated and delivered by the Trustee, shall be equally and ratably secured under the Indenture with all Securities Outstanding from time to time.

       

      
        

        2

        
          

        

      

      The Series 2019A-1 Bonds shall mature on September 27, 2029 and shall bear interest at the rate of 2.84% per annum, payable
        semiannually on March 27 and September 27 of each year and at maturity, commencing on March 27, 2020. The Series 2019A-2 Bonds shall mature on October 29, 2029 and shall bear interest at the rate of 2.84% per annum, payable semiannually on April 29
        and October 29 of each year and at maturity, commencing on April 29, 2020. The Series 2019A-3 Bonds shall mature on November 26, 2031 and shall bear interest at the rate of 2.94% per annum, payable semiannually on May 26 and November 26 of each
        year and at maturity, commencing on May 26, 2020. The Series 2019A-4 Bonds shall mature on December 27, 2031 and shall bear interest at the rate of 2.94% per annum, payable semiannually on June 27 and December 27 of each year and at maturity,
        commencing on June 27, 2020.

      

      

      Any payment of principal of or Make-Whole Amount (as defined in the Bond Purchase Agreement referred to below) or interest on any
        Series 2019A Bond that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day;
        provided that if the maturity date of any Series 2019A Bond is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the
        computation of interest payable on such next succeeding Business Day.

      

      

      Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Trustee, together with the Company,
        shall make payment of principal, any Make-Whole Amount or other premium, if any, and interest to each such Holder of outstanding Series 2019A Bonds pursuant to the Security Register and in accordance with the written reasonable payment instructions
        provided to the Company by each such Holder, which payment instructions as to such Holder may be modified in writing to the Company by such Holder from time to time. To the extent permitted by law, (a) the Company shall pay interest on any overdue
        payment of interest and (b) during the continuance of an Event of Default, the Company shall pay interest on the unpaid balance of the Series 2019A Bonds and on any overdue payment of any Make-Whole Amount, at the Default Rate set forth in the
        Series 2019A Bonds.

      

      

      The interest so payable on any Interest Payment Date shall be paid to the Persons in whose names the Bonds are registered at the
        close of business on the day that is fifteen days prior to such Interest Payment Date (a “Regular Record Date”); except that if the Company shall default in
        the payment of any interest due on such Interest Payment Date, such defaulted interest will cease to be payable to the Holder on such Regular Record Date and shall be paid to the Person in whose name the Series 2019A Bond is registered at the close
        of business on a Special Record Date for the payment of such defaulted interest to be fixed as provided in the Indenture.

      

      

      Except as provided hereinafter or in Article 3 of the Original Indenture, every Series 2019A Bond shall be dated as of the date of
        its authentication and delivery or, if that is an Interest Payment Date, the next day, and shall bear interest from the Interest Payment Date next preceding its date or the date of the first issuance of any Series 2019A Bonds of such or the Funding
        Date (as defined below), whichever is later. Except as provided in Article 3 of the Original Indenture, any Bond authenticated and delivered by the Trustee after the close of business on the Record Date with respect to any Interest Payment Date and
        prior to such Interest Payment Date shall be dated as of the date next following such Interest Payment Date and shall bear interest from such Interest Payment Date, except that if the Company shall default in the payment of any interest due on such
        Interest Payment Date, such Bond shall bear interest from the next preceding Interest Payment Date to which interest has been paid or, if no interest has been paid on such Bond, from the Funding Date. For purposes of this Second Supplemental
        Indenture, the term “Funding Date” means the date of the first issuance of any Series 2019A Bonds of such Tranche.

       

      
        

        3

        
          

        

      

      Section 1.4          Grace Period. Failure to pay interest on any Series 2019A Bond within five (5) Business Days (as
            herein defined) of the same becoming due and payable shall constitute an Event of Default under Section 10.1(a) of the Original Indenture.

      

      

      Section 1.5          Forms of Series 2019A Bonds. The forms of the Series 2019A-1 Bonds, the Series 2019A-2 Bonds,
            and the Series 2019A-3 Bonds and the Series 2019A-4 Bonds shall be substantially in the forms of Exhibits A, B, C and D, respectively, attached hereto; provided that such Series 2019A Bonds may bear and contain such legends and modifications as
            may be required by law or as may be necessary to comply with requirements of any stock exchange or of any regulatory board, body or official.

      

      

      ARTICLE 2.

      ISSUE AND AUTHENTICATION OF SERIES 2019A BONDS

      

      

      Section 2.1          Upon
          compliance by the Company with the requirements of the Indenture, including this Second Supplemental Indenture, for the issuance of additional Securities, Series 2019A Bonds up to an aggregate principal amount of $145,000,000, allocated among the
          Tranches of the Series 2019A Bonds as follows: Series 2019A-1 Bonds in the aggregate principal amount of $40,000,000; Series 2019A-2 Bonds in the aggregate principal amount of $35,000,000; Series 2019A-3 Bonds in the aggregate principal amount of
          $25,000,000; and Series 2019A-4 Bonds in the aggregate principal amount of $45,000,000, may forthwith, or, at the election of the Company, in stages from time to time, be executed by the Company and delivered to the Trustee, and the Trustee shall
          thereupon authenticate and make available for delivery said Series 2019A Bonds in accordance with the Original Indenture (which may be either before or after the recording of this Second Supplemental Indenture), and upon such execution, delivery
          and authentication, the Series 2019A Bonds shall be entitled to all of the benefits of the Indenture and shall be equally and ratably secured under the Indenture, notwithstanding that the recording of this Second Supplemental Indenture may be
          completed after the execution, delivery and authentication thereof. The Series 2019A Bonds shall be executed, authenticated and delivered in accordance with the provisions of, and, except as hereinafter provided, shall in all respects be subject
          to all of the terms, conditions and covenants of the Indenture as supplemented, including by this Second Supplemental Indenture. Such authenticated Bonds shall be delivered as directed by the order of designated officer or officers of the
          Company.

       

      
        

        4

        
          

        

      

      ARTICLE 3.

      REDEMPTION

      

      

      Section 3.1          Redemption. Notwithstanding Article 5 of the Original Indenture, the Bonds shall be redeemable
            as set forth in the Bond Purchase Agreement. The Trustee shall not be responsible for the calculation of the Make-Whole Amount. The Company shall calculate the Make-Whole Amount, if any, with respect to any such redemption and shall promptly
            notify the Trustee thereof.

      

      

      Section 3.2          Notice. In case the Company shall desire to exercise its right to redeem Bonds, notice of
            redemption shall be mailed by the Company, postage prepaid, as set forth in the Bond Purchase Agreement, to the owners of the Bonds to be redeemed, as a whole or in part, at their addresses as the same shall appear on the Security Register as
            of the most recent practicable date prior to such notice. Failure to duly give notice by mail, or defect in the notice, to the owner of any such Bond shall not affect the validity of the proceedings for the redemption of any other Bond.

      

      

      ARTICLE 4.

      COVENANTS

      

      

      Section 4.1          Bond Purchase Agreement. With respect to the Series 2019A Bonds issued hereunder, the Company
            shall comply with all of the terms, conditions and covenants set forth in the Bond Purchase Agreement, dated the date hereof, by and between the Company and the purchasers of the Series 2019A Bonds listed in Schedule A thereto (as from time to
            time amended in accordance with its terms, the “Bond Purchase Agreement”).

      

      

      Section 4.2          Financial Reporting. The Company shall comply with the information delivery requirements of
            Section 7.1 of the Bond Purchase Agreement from the date of such Bond Purchase Agreement and then so long as any Series 2019A Bonds are Outstanding.

      

      

      Section 4.3          Recording of Second Supplemental Indenture. Within three (3) Business Days following the date of the
            First Closing (as defined in the Bond Purchase Agreement), the Company will duly submit the Second Supplemental Indenture for recording as a mortgage of real estate in each county in which the Company owns real property other than real property
            located in Pennsylvania which is explicitly excluded from the lien of the Indenture. The Company will pay all taxes and recording or filing fees required to be paid with respect to the execution, recording or filing of the Second Supplemental
            Indenture.

      

      

      ARTICLE 5.

      PAYING AGENT AND SECURITY REGISTRAR

      

      

      Section 5.1          Paying Agent. Until otherwise determined by the Company, the Trustee shall serve as the Paying
            Agent for the Series 2019A Bonds and agrees to perform the duties and services of Paying Agent provided in the Indenture.

      

      

      Section 5.2          Security Registrar. The Company hereby confirms the appointment in the Original Indenture of the
            Trustee as the Security Registrar for the Series 2019A Bonds.

       

      
        

        5

        
          

        

      

      ARTICLE 6.

      CONCERNING THE TRUSTEE

      

      

      Section 6.1          The
          Trustee, for itself and its successors in said trusts, hereby accepts the trust hereby provided and agrees to perform the same upon the terms and conditions contained in the Indenture, including this Second Supplemental Indenture.

      

      

      Section 6.2          The Trustee
          makes no undertaking or representations in respect of, and shall not be responsible in any manner whatsoever for and in respect of, the validity, adequacy or sufficiency of this Second Supplemental Indenture or the proper authorization or the due
          execution hereof by the Company or for or in respect of the recitals and statements contained herein, all of which recitals and statements are made solely by the Company.

      

      

      ARTICLE 7.

      AMENDMENT TO INDENTURE

      

      

      Section 7.1          The first
          two paragraphs of Section 10.2 of the Indenture are amended and restated in their entirety to read as follows:

      

      

      “If an Event of Default shall have occurred under Section 10.1(d) or Section 10.1(e), the principal amount of the Securities then Outstanding and
        all other amounts payable thereunder shall become immediately due and payable without notice.

      

      

      If an Event of Default shall have occurred under Section 10.1(a), (b), or (c) and be continuing, then in every such case the Trustee or the Holders
        of not less than 25% in principal amount of the Securities then Outstanding may declare the principal amount (or, if any of the Securities are Discount Securities, such portion of the principal amount of such Securities as may be specified in the
        terms thereof as contemplated by Section 3.1) of all Securities then Outstanding to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders). Upon any Securities becoming due and payable under
        the first two paragraphs of this Section 10.2, automatically or by declaration, the entire principal amount (or, if any of the Securities are Discount Securities, such portion of the principal amount of such Securities as may be specified in the
        terms thereof as contemplated by Section 3.1), together with premium or other amounts payable, if any, and accrued interest, if any, thereon, shall become immediately due and payable.”

      

      

      ARTICLE 8.

      MISCELLANEOUS

      

      

      Section 8.1          Except as
          expressly amended and supplemented hereby, the Indenture shall continue in full force and effect in accordance with the provisions thereof and the Indenture is in all respects hereby ratified and confirmed. This Second Supplemental Indenture and
          all of its provisions shall be deemed a part of the Indenture in the manner and to the extent herein and therein provided. The Company and the Trustee agree that, notwithstanding the date of recording of this Second Supplemental Indenture, this
          Second Supplemental Indenture shall not affect the priority or enforceability of the Original Indenture, the Lien thereof and security interests granted thereby.

       

      
        

        6

        
          

        

      

      Section 8.2          All capitalized terms used in this Second Supplemental Indenture that are not defined in this Second Supplemental Indenture which are defined in the Indenture shall have the same meaning as
            used in the Indenture, except where the context clearly indicates otherwise. The term “Business Day” as used in this Second Supplemental Indenture shall mean any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Folsom, New Jersey are required or
            authorized to be closed.

      

      

      Section 8.3          This Second
          Supplemental Indenture and Series 2019A Bonds shall be governed by and construed in accordance with the law of the State of New Jersey.

      

      

      Section 8.4          The Series
          2019A Bonds are not subject to any sinking fund.

      

      

      Section 8.5          This Second
          Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

      

      

      Section 8.6          The Article
          and Section headings in this Second Supplemental Indenture are for convenience only and shall not affect the construction hereof.

      

      

      Section 8.7          All covenants
          and agreements in this Second Supplemental Indenture by the Company shall bind its successors and assigns, whether so expressed or not.

      

      

      Section 8.8          In case any
          provision in this Second Supplemental Indenture shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

       

      
        

        7

        
          

        

      

      IN WITNESS WHEREOF, the parties hereto have caused this
        Second Supplemental Indenture to be duly executed as of the day and year first above written.

      

      

      	 	 	
              ELIZABETHTOWN GAS COMPANY

            
	 	 	 	 
	 	 	
              By:

            	
              /s/ Christie McMullen

            
	 	 	 	
              Name: Christie McMullen

            
	 	 	 	
              Title: President

            
	 	 	 	 
	
              ATTEST:

            	 	 	
              [SEAL]

            
	 	 	 	 
	
              /s/ Ann T. Anthony

            	 	 	 
	
              Name: Ann T. Anthony

            	 	 	 
	
              Title: Treasurer and Secretary

            	 	 	 
	 	 	 	 
	 	 	
              WILMINGTON TRUST, NATIONAL ASSOCIATION,

            
	 	 	
              as Trustee

            
	 	 	 	 
	 	 	
              By:

            	
              /s/ Marie McMullen

            
	 	 	 	
              Name: Marie McMullen

            
	 	 	 	
              Title: Banking Officer

            
	 	 	 	 
	
              ATTEST:

            	 	 	
              [SEAL]

            
	 	 	 	 
	
              /s/ Rebecca Ritter

            	 	 	 
	
              Name: Rebecca Ritter

            	 	 	 
	
              Title: Relationship Manager

            	 	 	 

       

      
        

        8

        
          

        

      

      
        
          	STATE OF NEW JERSEY	
                  :

                

        

      

      
        
          	

                	:	
                  ss:

                

        

      

      
        
          	COUNTY OF ATLANTIC	
                  :

                

        

      

      

      

      Be it remembered, that on September 24, 2019, before me, a Notary Public of New Jersey, personally appeared Christie McMullen, who, I am satisfied,
        is President of Elizabethtown Gas Company, one of the corporations named in the foregoing deed or instrument, and I having first made known to her the contents thereof, she acknowledged that she had signed the same as such officer for and on behalf
        of such corporation, that the same was made by such corporation as its voluntary act and deed, and sealed with its corporate seal, by virtue of authority of its board of directors, and that she has received, without charge, a true copy of said
        foregoing deed or instrument. All of which is hereby certified.

      

      

      	 	
              /s/ Stacy A. Allen

            
	 	
              Notary Public of New Jersey

            
	 	 
	 	
              My Commission Expires: 1/17/2023

            

       

      
        

        9

        
          

        

      

      
        
          	STATE OF DELAWARE	
                  :

                

        

      

      
        
          	

                	:	
                  ss:

                

        

      

      
        
          	COUNTY OF NEW CASTLE	
                  :

                

        

      

      

      

      Be it remembered, that on September 25, 2019 before me, a Notary Public of the State of Delaware, personally appeared Marie McMullen, who, I am
        satisfied, is a Banking Officer of Wilmington Trust, National Association, one of the corporations named in the foregoing deed or instrument, and I having first made known to her the contents thereof, she acknowledged that she had signed the same
        as such officer for and on behalf of such corporation, that the same was made by such corporation as its voluntary act and deed, and sealed with its corporate seal, by virtue of authority of its board of directors. All of which is hereby certified.

      

      

      	 	
              /s/ Michael Bochanski, Jr.

            
	 	
              Notary Public of Delaware

            
	 	 
	 	
              My Commission Expires: 7/11/20

            

      

      

       

      
        

        10

        
          

        

      

      The within Second Supplemental Indenture has been recorded and filed as follows:

      

      

      	
              County

            	
              Date of Recordation

            	
              Book

            	
              Page

            	 
	 	 	 	 	 
	
              New Jersey:

            	 	 	 	 
	 	 	 	 	 
	
              Hunterdon

            	 	 	 	 
	
              Mercer

            	 	 	 	 
	
              Middlesex

            	 	 	 	 
	
              Morris

            	 	 	 	 
	
              Sussex

            	 	 	 	 
	
              Union

            	 	 	 	 
	
              Warren

            	 	 	 	 

       

      
        

        11

        
          

        

      

      
      EXHIBIT A

      

      

      FORM OF SERIES 2019A-1 BOND

      

      

      THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES
        ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.

      

      

      ELIZABETHTOWN GAS COMPANY

      

      

      FIRST MORTGAGE BOND, SERIES 2019A-1

      

      

      	
              No.: 2019A-1-[__]

            	
              PPN: 286857 C*6

            
	 	 
	
              Original Issue Date: September 27, 2019

            	
              Principal Amount: $[__________]

            
	 	 
	
              Interest Rate: 2.84%

            	
              Stated Maturity Date: September 27, 2029

            
	 	 
	
              Redemption Terms, if any: As described below.

            	
              Other Terms: As described below.

            

      

      

      Elizabethtown Gas Company, a New Jersey corporation
        (the “Company,” which term shall include any Successor Corporation as defined in the Indenture hereinafter referred to), for value received hereby promises to
        pay to [________________] or its registered assigns, the principal sum of [____________] Dollars on the Maturity Date set forth above, and to pay interest thereon from the Original Issue Date set forth
        above, or from the most recent date to which interest has been paid or duly provided for, semiannually in arrears on March 27 and September 27 in each year (each, an “Interest

          Payment Date”), commencing March 27, 2020, at the per annum Interest Rate set forth above, until the principal hereof is paid. No interest shall accrue on or after the Maturity Date so long as the principal amount of this Bond is paid in
        full on the Maturity Date, and if this Bond shall be duly called for redemption, interest shall accrue until, but not including, the redemption date. The interest so payable and punctually paid or duly provided for on any such Interest Payment Date
        will, as provided in the Indenture, be paid to the Person in whose name this Bond is registered at the close of business on the “Regular Record Date” for such
        interest, which shall be the March 12 or September 12, as the case may be, next preceding such Interest Payment Date; provided that interest payable on the Maturity Date set forth above or, if applicable, upon redemption or acceleration, shall be
        payable to the Person to whom principal shall be payable. To the extent permitted by law, (a) the Company shall pay interest on any overdue payment of interest and (b) during the continuance of an Event of Default, the Company shall pay interest on
        the unpaid balance of this Bond and on any overdue payment of any Make-Whole Amount, at the Default Rate. “Default Rate” means that rate of interest that is
        the greater of (i) 2% per annum above the rate of interest of the Series 2019A-1 Bonds or (ii) 2% over the rate of interest publicly announced by Bank of America, N.A. in New York, New York as its “base” or “prime” rate; provided, however, in no event will the rate of interest on a Series 2019A-1 Bond, including any Default Rate, be
        greater than 10% per annum.

       

      
        

        A-1

        
          

        

      

      Capitalized terms used but not defined in this Bond that are defined in the Indenture shall have such meanings as provided in the Indenture (as
        modified by the Second Supplemental Indenture referred to below), except that the term “Make-Whole Amount” shall have the meaning assigned to such term in the Bond Purchase Agreement.

      

      

      Except as otherwise provided in the Indenture, all payments of principal hereof, Make-Whole Amount, if any, and interest hereon shall be paid at the
        corporate trust office of the Trustee (as hereinafter defined), or at such other place as the Company shall have designated by written notice to the Holder of this Bond as provided in the Bond Purchase Agreement, 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.

      

      

      Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to
        the Holder on such Regular Record Date and shall be paid to the Person in whose name this Bond is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed as provided in the Indenture.

      

      

      This Bond is one of a duly authorized issue of Securities (first mortgage bonds) of the Company, designated as “Elizabethtown Gas Company First
        Mortgage Bonds, Series 2019A” (sometimes referred to herein as the “Series 2019A Bonds”), issued or to be issued under and equally and ratably secured by that
        certain First Mortgage Indenture dated as of July 2, 2018 (the “Original Indenture”) between the Company and Wilmington Trust, National Association, as trustee
        (the “Trustee,” which term shall include any successor trustee as provided in the Indenture), as such Original Indenture may be amended and supplemented by
        indentures supplemental thereto from time to time, including that Second Supplemental Indenture dated as of September 27, 2019 (the “Second Supplemental Indenture”),

        duly executed by the Company to the Trustee, to which Original Indenture and all indentures supplemental thereto (herein sometimes collectively called the “Indenture”)

        reference is hereby made for a description of the property mortgaged and pledged and the respective rights of the Company, the Trustee and the Holders of Securities in respect thereof, and for a specification of the principal amount of Securities
        from time to time issuable thereunder and the conditions upon which Securities may be issued.

      

      

      The Series 2019A Bonds are issued pursuant to the Second Supplemental Indenture in four Tranches. This Bond is a “Series 2019A-1 Bond.” The Series 2019A-1 Bonds are of similar tenor hereto and are limited to the aggregate authorized principal amount of $40,000,000 (except for Series 2019A-1 Bonds
        authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Series 2019A-1 Bonds pursuant to Sections 3.4, 3.5, 3.6, 5.6 or 14.6 of the Indenture and except for any Series 2019A-1 Bonds which, pursuant to
        Section 3.3 of the Indenture, are deemed never to have been authenticated and delivered hereunder). Except as otherwise provided, this Bond is subject to all of the terms, conditions and covenants of the Indenture as supplemented, including by the
        Second Supplemental Indenture.

       

      
        

        A-2

        
          

        

      

      This Bond is also issued in accordance with the terms of the Bond Purchase Agreement, dated as of September 27, 2019 (as from time to time amended
        in accordance with its terms, the “Bond Purchase Agreement”), between the Company and the purchasers of the Series 2019A Bonds listed in Schedule A thereto and
        is entitled to the benefits thereof.

      

      

      The Company or the Paying Agent, as the case may be, will make required prepayments in respect of this Bond on the dates and in the amounts
        specified in the Bond Purchase Agreement. Notwithstanding Article 5 of the Indenture, this Bond is also subject to optional prepayment, in whole or in part, at the times and on the terms specified in the Bond Purchase Agreement, but not otherwise.
        In the event of a prepayment of this Bond in part only, a new Series 2019A-1 Bond or Bonds for the unpaid portion hereof may be issued in the name of the Holder hereof upon the cancellation hereof.

      

      

      If an Event of Default shall occur and be continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner,
        at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture and this Bond. In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the
        preceding sentence then, in addition to the entire principal amount, any accrued interest and the Make-Whole Amount, if any, shall also become due and payable.

      

      

      If an “Event of Default” under the Bond Purchase Agreement shall occur and be continuing, the principal of all the Bonds at any such time
        outstanding under the Bond Purchase Agreement may be declared or may become due and payable, upon the conditions and in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Bond Purchase
        Agreement.

      

      

      The Indenture and the Bond Purchase Agreement provide that such declarations referred to in the two preceding paragraphs may in certain events be
        waived by the Holders of a majority in principal amount of the relevant Securities Outstanding.

      

      

      Interest payments for this Bond shall be computed and paid on the basis of a 360‐day year of twelve 30‐day months. Anything in the Bond Purchase
        Agreement or the Indenture to the contrary notwithstanding (but without limiting the requirement in Section 8.4 of the Bond Purchase Agreement that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment),
        any payment of principal of or Make-Whole Amount or interest on this Bond that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the
        interest payable on such next succeeding Business Day; provided that if the maturity date of this Bond is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall
        include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

      

      

      As more fully described in the Indenture, the Company, at its option, and subject to the terms and conditions provided in the Indenture, will be
        discharged from any and all obligations in respect of the Series 2019A-1 Bonds (except for certain obligations as specifically set forth in the Indenture) if the
        Company deposits with the Trustee or any Paying Agent (other than the Company) money or Eligible Obligations or a combination thereof, in an amount sufficient, determined as provided in the Indenture, to pay at maturity or the applicable redemption
        date all then Outstanding Series 2019A-1 Bonds.

       

      
        

        A-3

        
          

        

      

      The Series 2019A-1 Bonds are issuable only in registered form, without coupons, in denominations of $100,000 and integral multiples of $1,000 in
        excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Series 2019A-1 Bonds are exchangeable for a like aggregate principal amount of Series 2019A-1 Bonds of like tenor and of a different authorized
        denomination, as requested by the Holder surrendering the same.

      

      

      As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Bond is registrable in the Securities
        Register. Upon surrender of this Bond for registration of transfer at the corporate trust office of the Trustee or such other office or agency as may be designated by the Company, endorsed by or accompanied by a written instrument of transfer in
        form satisfactory to the Company and the Securities Registrar, duly executed by the Holder hereof or the attorney in fact of such Holder duly authorized in writing, one or more new Bonds of like tenor and of authorized denominations and for the
        same aggregate principal amount will be issued to the designated transferee or transferees.

      

      

      No service charge shall be made for any such registration of transfer or exchange but the Company may require payment of a sum sufficient to cover
        any tax or other governmental charge payable in connection therewith.

      

      

      Prior to due presentment of this Bond for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat
        the Person in whose name this Bond is registered as the owner thereof for all purposes, whether or not this Bond is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

      

      

      As more fully provided in the Indenture, certain of the provisions of the Indenture or Securities issued pursuant thereto may be altered, amended or
        eliminated, or additional provisions added, without the consent of the Holders, while other provisions of the Indenture or Securities issued pursuant thereto may be altered, amended or eliminated, or additional provisions added only with the
        consent of Holders of not less than a majority in aggregate principal amount of the Securities of all series then Outstanding, considered as one class; provided, however, that if there shall be Securities of more than one series Outstanding hereunder and if a proposed supplemental indenture shall directly affect the rights of the
        Holders of Securities of one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all series so directly affected, considered as one class,
        shall be required; and provided, further, that if the Securities of any series shall have
        been issued in more than one Tranche and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such Tranches, then the consent only of the Holders of a majority in
        aggregate principal amount of the Outstanding Securities of all Tranches so directly affected, considered as one class, shall be required. Notwithstanding the foregoing, as provided in the Indenture, certain provisions of this Bond may not be
        changed without the consent of the Holder of this Bond.

       

      
        

        A-4

        
          

        

      

      No recourse shall be had for the payment of the principal of or premium, if any, or interest, if any, on this Bond, or any part thereof, or for any
        claim based thereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, any indenture supplemental thereto or this Bond, against any past, present or future
        incorporator, stockholder, officer or director, as such, of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional
        provision, statute or rule of law or by the enforcement of any assessment or legal or equitable proceeding, penalty or otherwise; it being expressly agreed and understood that this Bond and the obligations evidenced hereby are solely corporate
        obligations and that no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, officer or director, past, present or future, of the Company or of any predecessor or successor corporation, either directly or
        indirectly through the Company or any predecessor or successor corporation, because of the indebtedness evidenced hereby or under or by reason of any of the obligations, covenants or agreements contained in the Indenture, any supplemental indenture
        or in this Bond or to be implied therefrom or herefrom; and such personal liability, if any, is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution and delivery of the Indenture, as originally
        executed and delivered, and the issuance of this Bond.

      

      

      This Bond shall be governed by and construed in accordance with the law of the State of New Jersey.

      

      

      Unless the certificate of authentication hereon has been executed by the Trustee directly or through an Authenticating Agent by manual signature of
        an authorized officer, this Bond shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

       

      
        

        A-5

        
          

        

      

      In Witness Whereof, the Company has caused this
        instrument to be duly executed.

      

      

      	 	 	 	
              Elizabethtown Gas Company

            
	 	 	 	 	 
	 	 	 	
              By:

            	 
	 	 	 	 	
              Name:

            
	 	 	 	 	
              Title:

            
	 	 	 	 	 
	
              Attest:

            	 	 	 	 
	 	
              Name:

            	 	 	 
	 	
              Title:

            	 	 	 

       

      
        

        A-6

        
          

        

      

      Trustee’s Certificate of Authentication

      

      

      This is one of the Series 2019A-1 Bonds designated, described or provided for in the within‐mentioned Indenture.

      

      

      	 	
              

              

            	
              Wilmington Trust, National Association,

            
	 	
              

              

            	
              as Trustee

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Authorized Officer

            

      

      

      Date of Authentication:

       

      
        

        A-7

        
          

        

      

      
      EXHIBIT B

      

      

      FORM OF SERIES 2019A-2 BOND

      

      

      THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES
        ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.

      

      

      ELIZABETHTOWN GAS COMPANY

      

      

      FIRST MORTGAGE BOND, SERIES 2019A-2

      

      

      	
              No.: 2019A-2-[__]

            	
              PPN: 286857 C@4

            
	 	 
	
              Original Issue Date: October 29, 2019

            	
              Principal Amount: $[__________]

            
	 	 
	
              Interest Rate 2.84%

            	
              Stated Maturity Date: October 29, 2029

            
	 	 
	
              Redemption Terms, if any: As described below.

            	
              Other Terms: As described below.

            

      

      

      Elizabethtown Gas Company, a New Jersey corporation
        (the “Company,” which term shall include any Successor Corporation as defined in the Indenture hereinafter referred to), for value received hereby promises to
        pay to [________________] or its registered assigns, the principal sum of [____________] Dollars on the Maturity Date set forth above, and to pay interest thereon from the Original Issue Date set forth
        above, or from the most recent date to which interest has been paid or duly provided for, semiannually in arrears on April 29 and October 29 in each year (each, an “Interest

          Payment Date”), commencing April 29, 2020, at the per annum Interest Rate set forth above, until the principal hereof is paid. No interest shall accrue on or after the Maturity Date so long as the principal amount of this Bond is paid in
        full on the Maturity Date, and if this Bond shall be duly called for redemption, interest shall accrue until, but not including, the redemption date. The interest so payable and punctually paid or duly provided for on any such Interest Payment Date
        will, as provided in the Indenture, be paid to the Person in whose name this Bond is registered at the close of business on the “Regular Record Date” for such
        interest, which shall be the April 14 or October 14, as the case may be, next preceding such Interest Payment Date; provided that interest payable on the Maturity Date set forth above or, if applicable, upon redemption or acceleration, shall be
        payable to the Person to whom principal shall be payable. To the extent permitted by law, (a) the Company shall pay interest on any overdue payment of interest and (b) during the continuance of an Event of Default, the Company shall pay interest on
        the unpaid balance of this Bond and on any overdue payment of any Make-Whole Amount, at the Default Rate. “Default Rate” means that rate of interest that is
        the greater of (i) 2% per annum above the rate of interest of the Series 2019A-2 Bonds or (ii) 2% over the rate of interest publicly announced by Bank of America, N.A. in New York, New York as its “base” or “prime” rate; provided, however, in no event will the rate of interest on a Series 2019A-2 Bond, including any Default Rate, be
        greater than 10% per annum.

       

      
        

        B-1

        
          

        

      

      Capitalized terms used but not defined in this Bond that are defined in the Indenture shall have such meanings as provided in the Indenture (as
        modified by the Second Supplemental Indenture referred to below), except that the term “Make-Whole Amount” shall have the meaning assigned to such term in the Bond Purchase Agreement.

      

      

      Except as otherwise provided in the Indenture, all payments of principal hereof, Make-Whole Amount, if any, and interest hereon shall be paid at the
        corporate trust office of the Trustee (as hereinafter defined), or at such other place as the Company shall have designated by written notice to the Holder of this Bond as provided in the Bond Purchase Agreement, 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.

      

      

      Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to
        the Holder on such Regular Record Date and shall be paid to the Person in whose name this Bond is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed as provided in the Indenture.

      

      

      This Bond is one of a duly authorized issue of Securities (first mortgage bonds) of the Company, designated as “Elizabethtown Gas Company First
        Mortgage Bonds, Series 2019A” (sometimes referred to herein as the “Series 2019A Bonds”), issued or to be issued under and equally and ratably secured by that
        certain First Mortgage Indenture dated as of July 2, 2018 (the “Original Indenture”) between the Company and Wilmington Trust, National Association, as trustee
        (the “Trustee,” which term shall include any successor trustee as provided in the Indenture), as such Original Indenture may be amended and supplemented by
        indentures supplemental thereto from time to time, including that Second Supplemental Indenture dated as of September 27, 2019 (the “Second Supplemental Indenture”),

        duly executed by the Company to the Trustee, to which Original Indenture and all indentures supplemental thereto (herein sometimes collectively called the “Indenture”)

        reference is hereby made for a description of the property mortgaged and pledged and the respective rights of the Company, the Trustee and the Holders of Securities in respect thereof, and for a specification of the principal amount of Securities
        from time to time issuable thereunder and the conditions upon which Securities may be issued.

      

      

      The Series 2019A Bonds are issued pursuant to the Second Supplemental Indenture in four Tranches. This Bond is a “Series 2019A-2 Bond.” The Series 2019A-2 Bonds are of similar tenor hereto and are limited to the aggregate authorized principal amount of $35,000,000 (except for Series 2019A-2 Bonds
        authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Series 2019A-2 Bonds pursuant to Sections 3.4, 3.5, 3.6, 5.6 or 14.6 of the Indenture and except for any Series 2019A-2 Bonds which, pursuant to
        Section 3.3 of the Indenture, are deemed never to have been authenticated and delivered hereunder). Except as otherwise provided, this Bond is subject to all of the terms, conditions and covenants of the Indenture as supplemented, including by the
        Second Supplemental Indenture.

       

      
        

        B-2

        
          

        

      

      This Bond is also issued in accordance with the terms of the Bond Purchase Agreement, dated as of September 27, 2019 (as from time to time amended
        in accordance with its terms, the “Bond Purchase Agreement”), between the Company and the purchasers of the Series 2019A Bonds listed in Schedule A thereto and
        is entitled to the benefits thereof.

      

      

      The Company or the Paying Agent, as the case may be, will make required prepayments in respect of this Bond on the dates and in the amounts
        specified in the Bond Purchase Agreement. Notwithstanding Article 5 of the Indenture, this Bond is also subject to optional prepayment, in whole or in part, at the times and on the terms specified in the Bond Purchase Agreement, but not otherwise.
        In the event of a prepayment of this Bond in part only, a new Series 2019A-2 Bond or Bonds for the unpaid portion hereof may be issued in the name of the Holder hereof upon the cancellation hereof.

      

      

      If an Event of Default shall occur and be continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner,
        at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture and this Bond. In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the
        preceding sentence then, in addition to the entire principal amount, any accrued interest and the Make-Whole Amount, if any, shall also become due and payable.

      

      

      If an “Event of Default” under the Bond Purchase Agreement shall occur and be continuing, the principal of all the Bonds at any such time
        outstanding under the Bond Purchase Agreement may be declared or may become due and payable, upon the conditions and in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Bond Purchase
        Agreement.

      

      

      The Indenture and the Bond Purchase Agreement provide that such declarations referred to in the two preceding paragraphs may in certain events be
        waived by the Holders of a majority in principal amount of the relevant Securities Outstanding.

      

      

      Interest payments for this Bond shall be computed and paid on the basis of a 360‐day year of twelve 30‐day months. Anything in the Bond Purchase
        Agreement or the Indenture to the contrary notwithstanding (but without limiting the requirement in Section 8.4 of the Bond Purchase Agreement that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment),
        any payment of principal of or Make-Whole Amount or interest on this Bond that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the
        interest payable on such next succeeding Business Day; provided that if the maturity date of this Bond is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall
        include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

      

      

      As more fully described in the Indenture, the Company, at its option, and subject to the terms and conditions provided in the Indenture, will be
        discharged from any and all obligations in respect of the Series 2019A-2 Bonds (except for certain obligations as specifically set forth in the Indenture) if the
        Company deposits with the Trustee or any Paying Agent (other than the Company) money or Eligible Obligations or a combination thereof, in an amount sufficient, determined as provided in the Indenture, to pay at maturity or the applicable redemption
        date all then Outstanding Series 2019A-2 Bonds.

       

      
        

        B-3

        
          

        

      

      The Series 2019A-2 Bonds are issuable only in registered form, without coupons, in denominations of $100,000 and integral multiples of $1,000 in
        excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Series 2019A-2 Bonds are exchangeable for a like aggregate principal amount of Series 2019A-2 Bonds of like tenor and of a different authorized
        denomination, as requested by the Holder surrendering the same.

      

      

      As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Bond is registrable in the Securities
        Register. Upon surrender of this Bond for registration of transfer at the corporate trust office of the Trustee or such other office or agency as may be designated by the Company, endorsed by or accompanied by a written instrument of transfer in
        form satisfactory to the Company and the Securities Registrar, duly executed by the Holder hereof or the attorney in fact of such Holder duly authorized in writing, one or more new Bonds of like tenor and of authorized denominations and for the
        same aggregate principal amount will be issued to the designated transferee or transferees.

      

      

      No service charge shall be made for any such registration of transfer or exchange but the Company may require payment of a sum sufficient to cover
        any tax or other governmental charge payable in connection therewith.

      

      

      Prior to due presentment of this Bond for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat
        the Person in whose name this Bond is registered as the owner thereof for all purposes, whether or not this Bond is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

      

      

      As more fully provided in the Indenture, certain of the provisions of the Indenture or Securities issued pursuant thereto may be altered, amended or
        eliminated, or additional provisions added, without the consent of the Holders, while other provisions of the Indenture or Securities issued pursuant thereto may be altered, amended or eliminated, or additional provisions added only with the
        consent of Holders of not less than a majority in aggregate principal amount of the Securities of all series then Outstanding, considered as one class; provided, however, that if there shall be Securities of more than one series Outstanding hereunder and if a proposed supplemental indenture shall directly affect the rights of the
        Holders of Securities of one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all series so directly affected, considered as one class,
        shall be required; and provided, further, that if the Securities of any series shall have
        been issued in more than one Tranche and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such Tranches, then the consent only of the Holders of a majority in
        aggregate principal amount of the Outstanding Securities of all Tranches so directly affected, considered as one class, shall be required. Notwithstanding the foregoing, as provided in the Indenture, certain provisions of this Bond may not be
        changed without the consent of the Holder of this Bond.

       

      
        

        B-4

        
          

        

      

      No recourse shall be had for the payment of the principal of or premium, if any, or interest, if any, on this Bond, or any part thereof, or for any
        claim based thereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, any indenture supplemental thereto or this Bond, against any past, present or future
        incorporator, stockholder, officer or director, as such, of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional
        provision, statute or rule of law or by the enforcement of any assessment or legal or equitable proceeding, penalty or otherwise; it being expressly agreed and understood that this Bond and the obligations evidenced hereby are solely corporate
        obligations and that no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, officer or director, past, present or future, of the Company or of any predecessor or successor corporation, either directly or
        indirectly through the Company or any predecessor or successor corporation, because of the indebtedness evidenced hereby or under or by reason of any of the obligations, covenants or agreements contained in the Indenture, any supplemental indenture
        or in this Bond or to be implied therefrom or herefrom; and such personal liability, if any, is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution and delivery of the Indenture, as originally
        executed and delivered, and the issuance of this Bond.

      

      

      This Bond shall be governed by and construed in accordance with the law of the State of New Jersey.

      

      

      Unless the certificate of authentication hereon has been executed by the Trustee directly or through an Authenticating Agent by manual signature of
        an authorized officer, this Bond shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

       

      
        

        B-5

        
          

        

      

      In Witness Whereof, the Company has caused this
        instrument to be duly executed.

      

      

      	 	 	 	
              Elizabethtown Gas Company

            
	 	 	 	 	 
	 	 	 	
              By:

            	 
	 	 	 	 	
              Name:

            
	 	 	 	 	
              Title:

            
	 	 	 	 	 
	
              Attest:

            	 	 	 	 
	 	
              Name:

            	 	 	 
	 	
              Title:

            	 	 	 

       

      
        

        B-6

        
          

        

      

      Trustee’s Certificate of Authentication

      

      

      This is one of the Series 2019A-2 Bonds designated, described or provided for in the within‐mentioned Indenture.

      

      

      	 	
              

              

            	
              Wilmington Trust, National Association,

            
	 	
              

              

            	
              as Trustee

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Authorized Officer

            
	 	 	 
	
              Date of Authentication:

            	 	 

      

      

       

      
        

        B-7

        
          

        

      

      
      EXHIBIT C

      

      

      FORM OF SERIES 2019A-3 BOND

      

      

      THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES
        ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.

      

      

      ELIZABETHTOWN GAS COMPANY

      

      

      FIRST MORTGAGE BOND, SERIES 2019A-3

      

      

      	
              No.: 2019A-3-[__]

            	
              PPN: 286857 C#2

            
	 	 
	
              Original Issue Date: November 26, 2019

            	
              Principal Amount: $[__________]

            
	 	 
	
              Interest Rate: 2.94%

            	
              Stated Maturity Date: November 26, 2031

            
	 	 
	
              Redemption Terms, if any: As described below.

            	
              Other Terms: As described below.

            

      

      

      Elizabethtown Gas Company, a New Jersey corporation
        (the “Company,” which term shall include any Successor Corporation as defined in the Indenture hereinafter referred to), for value received hereby promises to
        pay to [________________] or its registered assigns, the principal sum of [____________] Dollars on the Maturity Date set forth above, and to pay interest thereon from the Original Issue Date set forth
        above, or from the most recent date to which interest has been paid or duly provided for, semiannually in arrears on May 26 and November 26 in each year (each, an “Interest

          Payment Date”), commencing May 26, 2020, at the per annum Interest Rate set forth above, until the principal hereof is paid. No interest shall accrue on or after the Maturity Date so long as the principal amount of this Bond is paid in
        full on the Maturity Date, and if this Bond shall be duly called for redemption, interest shall accrue until, but not including, the redemption date. The interest so payable and punctually paid or duly provided for on any such Interest Payment Date
        will, as provided in the Indenture, be paid to the Person in whose name this Bond is registered at the close of business on the “Regular Record Date” for such
        interest, which shall be the May 11 or November 11, as the case may be, next preceding such Interest Payment Date; provided that interest payable on the Maturity Date set forth above or, if applicable, upon redemption or acceleration, shall be
        payable to the Person to whom principal shall be payable. To the extent permitted by law, (a) the Company shall pay interest on any overdue payment of interest and (b) during the continuance of an Event of Default, the Company shall pay interest on
        the unpaid balance of this Bond and on any overdue payment of any Make-Whole Amount, at the Default Rate. “Default Rate” means that rate of interest that is
        the greater of (i) 2% per annum above the rate of interest of the Series 2019A-3 Bonds or (ii) 2% over the rate of interest publicly announced by Bank of America, N.A. in New York, New York as its “base” or “prime” rate; provided, however, in no event will the rate of interest on a Series 2019A-3 Bond, including any Default Rate, be
        greater than 10% per annum.

       

      
        

        C-1

        
          

        

      

      Capitalized terms used but not defined in this Bond that are defined in the Indenture shall have such meanings as provided in the Indenture (as
        modified by the Second Supplemental Indenture referred to below), except that the term “Make-Whole Amount” shall have the meaning assigned to such term in the Bond Purchase Agreement.

      

      

      Except as otherwise provided in the Indenture, all payments of principal hereof, Make-Whole Amount, if any, and interest hereon shall be paid at the
        corporate trust office of the Trustee (as hereinafter defined), or at such other place as the Company shall have designated by written notice to the Holder of this Bond as provided in the Bond Purchase Agreement, 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.

      

      

      Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to
        the Holder on such Regular Record Date and shall be paid to the Person in whose name this Bond is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed as provided in the Indenture.

      

      

      This Bond is one of a duly authorized issue of Securities (first mortgage bonds) of the Company, designated as “Elizabethtown Gas Company First
        Mortgage Bonds, Series 2019A” (sometimes referred to herein as the “Series 2019A Bonds”), issued or to be issued under and equally and ratably secured by that
        certain First Mortgage Indenture dated as of July 2, 2018 (the “Original Indenture”) between the Company and Wilmington Trust, National Association, as trustee
        (the “Trustee,” which term shall include any successor trustee as provided in the Indenture), as such Original Indenture may be amended and supplemented by
        indentures supplemental thereto from time to time, including that Second Supplemental Indenture dated as of September 27, 2019 (the “Second Supplemental Indenture”),

        duly executed by the Company to the Trustee, to which Original Indenture and all indentures supplemental thereto (herein sometimes collectively called the “Indenture”)

        reference is hereby made for a description of the property mortgaged and pledged and the respective rights of the Company, the Trustee and the Holders of Securities in respect thereof, and for a specification of the principal amount of Securities
        from time to time issuable thereunder and the conditions upon which Securities may be issued.

      

      

      The Series 2019A Bonds are issued pursuant to the Second Supplemental Indenture in four Tranches. This Bond is a “Series 2019A-3 Bond.” The Series 2019A-3 Bonds are of similar tenor hereto and are limited to the aggregate authorized principal amount of $25,000,000 (except for Series 2019A-3 Bonds
        authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Series 2019A-3 Bonds pursuant to Sections 3.4, 3.5, 3.6, 5.6 or 14.6 of the Indenture and except for any Series 2019A-3 Bonds which, pursuant to
        Section 3.3 of the Indenture, are deemed never to have been authenticated and delivered hereunder). Except as otherwise provided, this Bond is subject to all of the terms, conditions and covenants of the Indenture as supplemented, including by the
        Second Supplemental Indenture.

       

      
        

        C-2

        
          

        

      

      This Bond is also issued in accordance with the terms of the Bond Purchase Agreement, dated as of September 27, 2019 (as from time to time amended
        in accordance with its terms, the “Bond Purchase Agreement”), between the Company and the purchasers of the Series 2019A Bonds listed in Schedule A thereto and
        is entitled to the benefits thereof.

      

      

      The Company or the Paying Agent, as the case may be, will make required prepayments in respect of this Bond on the dates and in the amounts
        specified in the Bond Purchase Agreement. Notwithstanding Article 5 of the Indenture, this Bond is also subject to optional prepayment, in whole or in part, at the times and on the terms specified in the Bond Purchase Agreement, but not otherwise.
        In the event of a prepayment of this Bond in part only, a new Series 2019A-3 Bond or Bonds for the unpaid portion hereof may be issued in the name of the Holder hereof upon the cancellation hereof.

      

      

      If an Event of Default shall occur and be continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner,
        at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture and this Bond. In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the
        preceding sentence then, in addition to the entire principal amount, any accrued interest and the Make-Whole Amount, if any, shall also become due and payable.

      

      

      If an “Event of Default” under the Bond Purchase Agreement shall occur and be continuing, the principal of all the Bonds at any such time
        outstanding under the Bond Purchase Agreement may be declared or may become due and payable, upon the conditions and in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Bond Purchase
        Agreement.

      

      

      The Indenture and the Bond Purchase Agreement provide that such declarations referred to in the two preceding paragraphs may in certain events be
        waived by the Holders of a majority in principal amount of the relevant Securities Outstanding.

      

      

      Interest payments for this Bond shall be computed and paid on the basis of a 360‐day year of twelve 30‐day months. Anything in the Bond Purchase
        Agreement or the Indenture to the contrary notwithstanding (but without limiting the requirement in Section 8.4 of the Bond Purchase Agreement that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment),
        any payment of principal of or Make-Whole Amount or interest on this Bond that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the
        interest payable on such next succeeding Business Day; provided that if the maturity date of this Bond is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall
        include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

      

      

      As more fully described in the Indenture, the Company, at its option, and subject to the terms and conditions provided in the Indenture, will be
        discharged from any and all obligations in respect of the Series 2019A-3 Bonds (except for certain obligations as specifically set forth in the Indenture) if the
        Company deposits with the Trustee or any Paying Agent (other than the Company) money or Eligible Obligations or a combination thereof, in an amount sufficient, determined as provided in the Indenture, to pay at maturity or the applicable redemption
        date all then Outstanding Series 2019A-3 Bonds.

       

      
        

        C-3

        
          

        

      

      The Series 2019A-3 Bonds are issuable only in registered form, without coupons, in denominations of $100,000 and integral multiples of $1,000 in
        excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Series 2019A-3 Bonds are exchangeable for a like aggregate principal amount of Series 2019A-3 Bonds of like tenor and of a different authorized
        denomination, as requested by the Holder surrendering the same.

      

      

      As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Bond is registrable in the Securities
        Register. Upon surrender of this Bond for registration of transfer at the corporate trust office of the Trustee or such other office or agency as may be designated by the Company, endorsed by or accompanied by a written instrument of transfer in
        form satisfactory to the Company and the Securities Registrar, duly executed by the Holder hereof or the attorney in fact of such Holder duly authorized in writing, one or more new Bonds of like tenor and of authorized denominations and for the
        same aggregate principal amount will be issued to the designated transferee or transferees.

      

      

      No service charge shall be made for any such registration of transfer or exchange but the Company may require payment of a sum sufficient to cover
        any tax or other governmental charge payable in connection therewith.

      

      

      Prior to due presentment of this Bond for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat
        the Person in whose name this Bond is registered as the owner thereof for all purposes, whether or not this Bond is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

      

      

      As more fully provided in the Indenture, certain of the provisions of the Indenture or Securities issued pursuant thereto may be altered, amended or
        eliminated, or additional provisions added, without the consent of the Holders, while other provisions of the Indenture or Securities issued pursuant thereto may be altered, amended or eliminated, or additional provisions added only with the
        consent of Holders of not less than a majority in aggregate principal amount of the Securities of all series then Outstanding, considered as one class; provided, however, that if there shall be Securities of more than one series Outstanding hereunder and if a proposed supplemental indenture shall directly affect the rights of the
        Holders of Securities of one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all series so directly affected, considered as one class,
        shall be required; and provided, further, that if the Securities of any series shall have
        been issued in more than one Tranche and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such Tranches, then the consent only of the Holders of a majority in
        aggregate principal amount of the Outstanding Securities of all Tranches so directly affected, considered as one class, shall be required. Notwithstanding the foregoing, as provided in the Indenture, certain provisions of this Bond may not be
        changed without the consent of the Holder of this Bond.

       

      
        

        C-4

        
          

        

      

      No recourse shall be had for the payment of the principal of or premium, if any, or interest, if any, on this Bond, or any part thereof, or for any
        claim based thereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, any indenture supplemental thereto or this Bond, against any past, present or future
        incorporator, stockholder, officer or director, as such, of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional
        provision, statute or rule of law or by the enforcement of any assessment or legal or equitable proceeding, penalty or otherwise; it being expressly agreed and understood that this Bond and the obligations evidenced hereby are solely corporate
        obligations and that no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, officer or director, past, present or future, of the Company or of any predecessor or successor corporation, either directly or
        indirectly through the Company or any predecessor or successor corporation, because of the indebtedness evidenced hereby or under or by reason of any of the obligations, covenants or agreements contained in the Indenture, any supplemental indenture
        or in this Bond or to be implied therefrom or herefrom; and such personal liability, if any, is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution and delivery of the Indenture, as originally
        executed and delivered, and the issuance of this Bond.

      

      

      This Bond shall be governed by and construed in accordance with the law of the State of New Jersey.

      

      

      Unless the certificate of authentication hereon has been executed by the Trustee directly or through an Authenticating Agent by manual signature of
        an authorized officer, this Bond shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

       

      
        

        C-5

        
          

        

      

      In Witness Whereof, the Company has caused this
        instrument to be duly executed.

      

      

      	 	 	 	
              Elizabethtown Gas Company

            
	 	 	 	 	 
	 	 	 	
              By:

            	 
	 	 	 	 	
              Name:

            
	 	 	 	 	
              Title:

            
	 	 	 	 	 
	
              Attest:

            	 	 	 	 
	 	
              Name:

            	 	 	 
	 	
              Title:

            	 	 	 

       

      
        

        C-6

        
          

        

      

      Trustee’s Certificate of Authentication

      

      

      This is one of the Series 2019A-3 Bonds designated, described or provided for in the within‐mentioned Indenture.

      

      

      	 	
              

              

            	
              Wilmington Trust, National Association,

            
	 	
              

              

            	
              as Trustee

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Authorized Officer

            
	 	 	 
	
              Date of Authentication:

            	 	 

       

      
        

        C-7

        
          

        

      

      
      EXHIBIT D

      

      

      FORM OF SERIES 2019A-4 BOND

      

      

      THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES
        ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.

      

      

      ELIZABETHTOWN GAS COMPANY

      

      

      FIRST MORTGAGE BOND, SERIES 2019A-4

      

      

      	
              No.: 2019A-4-[__]

            	
              PPN: 286857 D*5

            
	 	 
	
              Original Issue Date: December 27, 2019

            	
              Principal Amount: $[__________]

            
	 	 
	
              Interest Rate: 2.94%

            	
              Stated Maturity Date: December 27, 2031

            
	 	 
	
              Redemption Terms, if any: As described below.

            	
              Other Terms: As described below.

            

      

      

      Elizabethtown Gas Company, a New Jersey corporation
        (the “Company,” which term shall include any Successor Corporation as defined in the Indenture hereinafter referred to), for value received hereby promises to
        pay to [________________] or its registered assigns, the principal sum of [____________] Dollars on the Maturity Date set forth above, and to pay interest thereon from the Original Issue Date set forth
        above, or from the most recent date to which interest has been paid or duly provided for, semiannually in arrears on June 27 and December 27 in each year (each, an “Interest

          Payment Date”), commencing June 27, 2020, at the per annum Interest Rate set forth above, until the principal hereof is paid. No interest shall accrue on or after the Maturity Date so long as the principal amount of this Bond is paid in
        full on the Maturity Date, and if this Bond shall be duly called for redemption, interest shall accrue until, but not including, the redemption date. The interest so payable and punctually paid or duly provided for on any such Interest Payment Date
        will, as provided in the Indenture, be paid to the Person in whose name this Bond is registered at the close of business on the “Regular Record Date” for such
        interest, which shall be the June 12 or December 12, as the case may be, next preceding such Interest Payment Date; provided that interest payable on the Maturity Date set forth above or, if applicable, upon redemption or acceleration, shall be
        payable to the Person to whom principal shall be payable. To the extent permitted by law, (a) the Company shall pay interest on any overdue payment of interest and (b) during the continuance of an Event of Default, the Company shall pay interest on
        the unpaid balance of this Bond and on any overdue payment of any Make-Whole Amount, at the Default Rate. “Default Rate” means that rate of interest that is
        the greater of (i) 2% per annum above the rate of interest of the Series 2019A-4 Bonds or (ii) 2% over the rate of interest publicly announced by Bank of America, N.A. in New York, New York as its “base” or “prime” rate; provided, however, in no event will the rate of interest on a Series 2019A-4 Bond, including any Default Rate, be
        greater than 10% per annum.

       

      
        

        D-1

        
          

        

      

      Capitalized terms used but not defined in this Bond that are defined in the Indenture shall have such meanings as provided in the Indenture (as
        modified by the Second Supplemental Indenture referred to below), except that the term “Make-Whole Amount” shall have the meaning assigned to such term in the Bond Purchase Agreement.

      

      

      Except as otherwise provided in the Indenture, all payments of principal hereof, Make-Whole Amount, if any, and interest hereon shall be paid at the
        corporate trust office of the Trustee (as hereinafter defined), or at such other place as the Company shall have designated by written notice to the Holder of this Bond as provided in the Bond Purchase Agreement, 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.

      

      

      Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to
        the Holder on such Regular Record Date and shall be paid to the Person in whose name this Bond is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed as provided in the Indenture.

      

      

      This Bond is one of a duly authorized issue of Securities (first mortgage bonds) of the Company, designated as “Elizabethtown Gas Company First
        Mortgage Bonds, Series 2019A” (sometimes referred to herein as the “Series 2019A Bonds”), issued or to be issued under and equally and ratably secured by that
        certain First Mortgage Indenture dated as of July 2, 2018 (the “Original Indenture”) between the Company and Wilmington Trust, National Association, as trustee
        (the “Trustee,” which term shall include any successor trustee as provided in the Indenture), as such Original Indenture may be amended and supplemented by
        indentures supplemental thereto from time to time, including that Second Supplemental Indenture dated as of September 27, 2019 (the “Second Supplemental Indenture”),

        duly executed by the Company to the Trustee, to which Original Indenture and all indentures supplemental thereto (herein sometimes collectively called the “Indenture”)

        reference is hereby made for a description of the property mortgaged and pledged and the respective rights of the Company, the Trustee and the Holders of Securities in respect thereof, and for a specification of the principal amount of Securities
        from time to time issuable thereunder and the conditions upon which Securities may be issued.

      

      

      The Series 2019A Bonds are issued pursuant to the Second Supplemental Indenture in four Tranches. This Bond is a “Series 2019A-4 Bond.” The Series 2019A-4 Bonds are of similar tenor hereto and are limited to the aggregate authorized principal amount of $45,000,000 (except for Series 2019A-4 Bonds
        authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Series 2019A-4 Bonds pursuant to Sections 3.4, 3.5, 3.6, 5.6 or 14.6 of the Indenture and except for any Series 2019A-4 Bonds which, pursuant to
        Section 3.3 of the Indenture, are deemed never to have been authenticated and delivered hereunder). Except as otherwise provided, this Bond is subject to all of the terms, conditions and covenants of the Indenture as supplemented, including by the
        Second Supplemental Indenture.

       

      
        

        D-2

        
          

        

      

      This Bond is also issued in accordance with the terms of the Bond Purchase Agreement, dated as of September 27, 2019 (as from time to time amended
        in accordance with its terms, the “Bond Purchase Agreement”), between the Company and the purchasers of the Series 2019A Bonds listed in Schedule A thereto and
        is entitled to the benefits thereof.

      

      

      The Company or the Paying Agent, as the case may be, will make required prepayments in respect of this Bond on the dates and in the amounts
        specified in the Bond Purchase Agreement. Notwithstanding Article 5 of the Indenture, this Bond is also subject to optional prepayment, in whole or in part, at the times and on the terms specified in the Bond Purchase Agreement, but not otherwise.
        In the event of a prepayment of this Bond in part only, a new Series 2019A-4 Bond or Bonds for the unpaid portion hereof may be issued in the name of the Holder hereof upon the cancellation hereof.

      

      

      If an Event of Default shall occur and be continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner,
        at the price (including any applicable Make-Whole Amount) and with the effect provided in the Indenture and this Bond. In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the
        preceding sentence then, in addition to the entire principal amount, any accrued interest and the Make-Whole Amount, if any, shall also become due and payable.

      

      

      If an “Event of Default” under the Bond Purchase Agreement shall occur and be continuing, the principal of all the Bonds at any such time
        outstanding under the Bond Purchase Agreement may be declared or may become due and payable, upon the conditions and in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Bond Purchase
        Agreement.

      

      

      The Indenture and the Bond Purchase Agreement provide that such declarations referred to in the two preceding paragraphs may in certain events be
        waived by the Holders of a majority in principal amount of the relevant Securities Outstanding.

      

      

      Interest payments for this Bond shall be computed and paid on the basis of a 360‐day year of twelve 30‐day months. Anything in the Bond Purchase
        Agreement or the Indenture to the contrary notwithstanding (but without limiting the requirement in Section 8.4 of the Bond Purchase Agreement that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment),
        any payment of principal of or Make-Whole Amount or interest on this Bond that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the
        interest payable on such next succeeding Business Day; provided that if the maturity date of this Bond is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall
        include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

      

      

      As more fully described in the Indenture, the Company, at its option, and subject to the terms and conditions provided in the Indenture, will be
        discharged from any and all obligations in respect of the Series 2019A-4 Bonds (except for certain obligations as specifically set forth in the Indenture) if the
        Company deposits with the Trustee or any Paying Agent (other than the Company) money or Eligible Obligations or a combination thereof, in an amount sufficient, determined as provided in the Indenture, to pay at maturity or the applicable redemption
        date all then Outstanding Series 2019A-4 Bonds.

       

      
        

        D-3

        
          

        

      

      The Series 2019A-4 Bonds are issuable only in registered form, without coupons, in denominations of $100,000 and integral multiples of $1,000 in
        excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Series 2019A-4 Bonds are exchangeable for a like aggregate principal amount of Series 2019A-4 Bonds of like tenor and of a different authorized
        denomination, as requested by the Holder surrendering the same.

      

      

      As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Bond is registrable in the Securities
        Register. Upon surrender of this Bond for registration of transfer at the corporate trust office of the Trustee or such other office or agency as may be designated by the Company, endorsed by or accompanied by a written instrument of transfer in
        form satisfactory to the Company and the Securities Registrar, duly executed by the Holder hereof or the attorney in fact of such Holder duly authorized in writing, one or more new Bonds of like tenor and of authorized denominations and for the
        same aggregate principal amount will be issued to the designated transferee or transferees.

      

      

      No service charge shall be made for any such registration of transfer or exchange but the Company may require payment of a sum sufficient to cover
        any tax or other governmental charge payable in connection therewith.

      

      

      Prior to due presentment of this Bond for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat
        the Person in whose name this Bond is registered as the owner thereof for all purposes, whether or not this Bond is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

      

      

      As more fully provided in the Indenture, certain of the provisions of the Indenture or Securities issued pursuant thereto may be altered, amended or
        eliminated, or additional provisions added, without the consent of the Holders, while other provisions of the Indenture or Securities issued pursuant thereto may be altered, amended or eliminated, or additional provisions added only with the
        consent of Holders of not less than a majority in aggregate principal amount of the Securities of all series then Outstanding, considered as one class; provided, however, that if there shall be Securities of more than one series Outstanding hereunder and if a proposed supplemental indenture shall directly affect the rights of the
        Holders of Securities of one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all series so directly affected, considered as one class,
        shall be required; and provided, further, that if the Securities of any series shall have
        been issued in more than one Tranche and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such Tranches, then the consent only of the Holders of a majority in
        aggregate principal amount of the Outstanding Securities of all Tranches so directly affected, considered as one class, shall be required. Notwithstanding the foregoing, as provided in the Indenture, certain provisions of this Bond may not be
        changed without the consent of the Holder of this Bond.

       

      
        

        D-4

        
          

        

      

      No recourse shall be had for the payment of the principal of or premium, if any, or interest, if any, on this Bond, or any part thereof, or for any
        claim based thereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, any indenture supplemental thereto or this Bond, against any past, present or future
        incorporator, stockholder, officer or director, as such, of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional
        provision, statute or rule of law or by the enforcement of any assessment or legal or equitable proceeding, penalty or otherwise; it being expressly agreed and understood that this Bond and the obligations evidenced hereby are solely corporate
        obligations and that no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, officer or director, past, present or future, of the Company or of any predecessor or successor corporation, either directly or
        indirectly through the Company or any predecessor or successor corporation, because of the indebtedness evidenced hereby or under or by reason of any of the obligations, covenants or agreements contained in the Indenture, any supplemental indenture
        or in this Bond or to be implied therefrom or herefrom; and such personal liability, if any, is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution and delivery of the Indenture, as originally
        executed and delivered, and the issuance of this Bond.

      

      

      This Bond shall be governed by and construed in accordance with the law of the State of New Jersey.

      

      

      Unless the certificate of authentication hereon has been executed by the Trustee directly or through an Authenticating Agent by manual signature of
        an authorized officer, this Bond shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

       

      
        

        D-5

        
          

        

      

      In Witness Whereof, the Company has caused this
        instrument to be duly executed.

      

      

      	 	 	 	
              Elizabethtown Gas Company

            
	 	 	 	 	 
	 	 	 	
              By:

            	 
	 	 	 	 	
              Name:

            
	 	 	 	 	
              Title:

            
	 	 	 	 	 
	
              Attest:

            	 	 	 	 
	 	
              Name:

            	 	 	 
	 	
              Title:

            	 	 	 

       

      
        

        D-6

        
          

        

      

      Trustee’s Certificate of Authentication

      

      

      This is one of the Series 2019A-4 Bonds designated, described or provided for in the within‐mentioned Indenture.

      

      

      	 	
              

              

            	
              Wilmington Trust, National Association,

            
	 	
              

              

            	
              as Trustee

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Authorized Officer

            
	 	 	 
	
              Date of Authentication:

            	 	 

      

      

    

  

   

    

  D-7

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