Document:

EXHIBIT 10.3

 

LTC Properties, Inc.

 

2014 EXECUTIVE EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”), is made as of November 12, 2014, effective as of November 12, 2014 (“Effective Date”) by and between LTC PROPERTIES, INC., a corporation organized under the laws of the State of Maryland (“LTC” or the “Company”), and CLINT MALIN (“Executive”) and supersedes and terminates the 2007 Amended and Restated Employment Agreement between LTC and Executive.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Effective Date, Appointment, Title and Duties.  Executive currently serves as its Executive Vice President, Chief Investment Officer and desires to continue in such position based upon the terms and conditions set forth herein.  In such capacity, Executive shall report to the Chief Executive Officer of the Company, and shall have such duties, powers and responsibilities as are customarily assigned to an Executive Vice President, Chief Investment Officer of a publicly held corporation, but shall also be responsible to the Board of Directors and to any committee thereof.  In addition, Executive shall have such other duties and responsibilities as the Board of Directors may reasonably assign him, with his consent, including serving with the consent or at the request of the Board of Directors as an officer or on the board of directors of affiliated corporations, provided that such duties are commensurate with and customary for a senior executive officer bearing Executive’s experience, qualifications, title and position.

 

2.                                      Term of Agreement.  The term of this Agreement shall commence as of the Effective Date and shall extend such that at each and every moment of time hereafter, unless and until this Agreement is terminated in accordance with provisions of this Agreement, the remaining term always shall be two years.

 

3.                                      Acceptance of Position.  Executive accepts the position of Executive Vice President, Chief Investment Officer, and agrees that during the term of this Agreement he will faithfully perform his duties and, except as expressly approved by the Board of Directors of LTC, will devote substantially all of his business time to the business and affairs of LTC, and will not engage, for his own account or for the account of any other person or entity, in a business which competes with LTC.  It is acknowledged and agreed that Executive may serve as an officer and/or director of companies in which LTC owns voting or non-voting stock or other securities.  In addition, it is acknowledged and agreed that Executive may, from time to time, serve as a member of the board of directors of other companies which do not compete with LTC, provided that Executive has provided the Board of Directors of LTC with notice of election to any such board of directors.  Any compensation or remuneration which Executive receives in consideration of his service on the board of directors of other companies shall be the sole and exclusive property of Executive, and LTC shall have no right or entitlement at any time to any such compensation or remuneration.  Nothing herein shall preclude Executive from serving on the board of directors or similar governing body of any not for profit or philanthropic organization.

 

 

4.                                      Salary and Benefits.  During the term of this Agreement:

 

(a)                                 LTC shall pay to Executive an initial base salary at an annual rate of not less than Three-hundred seventy Thousand Dollars ($370,000) per annum (“Initial Base Salary”), paid in approximately equal installments at intervals based on any reasonable Company policy.  LTC agrees from time to time to consider increases in such base salary in the discretion of the Board of Directors.  Any increase in his Initial Base Salary, once granted, shall automatically amend this Agreement to provide that thereafter Executive’s Base Salary shall not be less than the annual amount of his increased Base Salary.

 

(b)                                 During the term hereof, Executive shall participate in all health, retirement, Company paid insurance, sick leave, disability, expense reimbursement and other benefit programs which LTC makes available to any of its senior executives.

 

(c)                                  Executive shall be eligible to participate in and earn an annual bonus pursuant to the terms of the Company’s Annual Cash Bonus Incentive Plan. Executive also shall be eligible to participate in any LTC incentive stock, option or bonus plan offered by LTC to its senior executives, subject to the terms thereof and at the sole discretion of the Board of Directors.  The Company shall grant Executive 2,500 shares of LTC restricted stock to vest in one year from the date of this contract as a one-time bonus payment upon execution of this Agreement.

 

(d)                                 Executive shall be entitled to a minimum of four (4) weeks paid vacation per year, or such greater amount as approved by the Chief Executive Officer of the Company or, if there is no Chief Executive Officer, the Board of Directors, provided that not more than two (2) weeks of such vacation time may be taken consecutively without prior notice to and non-objection by the Chief Executive Officer or, if there is no Chief Executive Officer, the Board of Directors.

 

5.                                      Certain Terms Defined.  For purposes of this Agreement:

 

(a)                                 Executive shall be deemed to be “disabled” if both of the following conditions have been satisfied: (i) a physical or mental condition shall occur and persist which, in the written opinion of a licensed and qualified physician selected by the Board of Directors in good faith, has rendered Executive unable to perform the duties set forth in Section 1 hereof for a period of sixty (60) consecutive days or more, or for sixty (60) days or more out of any (90) day period, and, (ii) in the written opinion of such physician, the condition will continue for an indefinite and long term period of time, rendering Executive unable to return to his duties.

 

(b)                                 A termination of Executive’s employment by LTC shall be deemed for “Cause” if, and only if, it is based upon (i) conviction of a felony; or (ii) material disloyalty to the Company such as embezzlement, misappropriation of corporate assets or (iii) breach of Executive’s agreement not to engage in business for another enterprise of the type engaged in by the Company, except as permitted pursuant to Section 3 of this

 

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Agreement; or (iv) the engaging in unethical or illegal behavior which is of a public nature, brings LTC into disrepute, and results in material damage to the Company; or (v) a material breach of this Agreement which causes material and demonstrable harm to the Company.  The Company shall have the right to suspend Executive with full pay and benefits, for a reasonable period not to exceed 45 days, to investigate allegations of conduct which, if proven, would establish a right to terminate this Agreement for Cause, or to permit a felony charge to be tried.  Immediately upon the conclusion of such temporary period, unless Cause to terminate this Agreement has been established, Executive shall be restored to all duties and responsibilities as if such suspension had never occurred.

 

(c)                                  A resignation by Executive of his employment shall not be deemed to be voluntary and shall be deemed to be a resignation with “Good Reason” if it is based upon (i) a diminution in Executive’s title, duties, or Base Salary; or (ii) a direction by the Board of Directors that Executive report to any person or group other than the Chief Executive Officer;  (iii) a geographic relocation of Executive’s place of work a distance of more than ten miles (10) from Westlake Village, CA (unless such relocation results in LTC’s offices being 25 miles or less from Executive’s primary residence as of the date when the relocation occurs); or (iv) the material breach of this agreement by LTC.

 

(i)                         Good Reason shall not exist unless the Executive gives the Company written notice within thirty (30) days after the discovery of the occurrence of the event which the Executive believes constitutes the basis for Good Reason, specifying the particular act or failure to act which the Executive believes constitutes the basis for Good Reason.  If the Company fails to cure such act or failure to act, if curable, within thirty (30) days after receipt of such notice, the Executive may terminate his employment for Good Reason.  However, such termination must occur within 2 years following the initial existence of the condition specified in Section 5(c) which constitutes the basis for Good Reason.

 

(ii)                      Cause shall not exist unless the Company gives Executive written notice within thirty (30) days after the discovery of the occurrence of the event which the Company believes constitutes the basis for Cause, specifying the particular act or failure to act which the Company believes constitutes the basis for Cause.  If the Executive fails to cure such act or failure to act, if curable, within thirty (30) days after receipt of such notice, the Company may terminate Executive’s employment for Cause.  For the avoidance of doubt, if such act is not curable, the Company may terminate Executive’s employment for Cause upon providing written notice of termination specifying the reasons therefore.

 

(d)                                 “Affiliate” means with respect to any Person, a Person who, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control, with the Person specified.

 

(e)                                  “Base Salary” means, as of any date of termination of employment, the highest annual base salary of Executive in the then current calendar year or in any of the last four calendar years immediately preceding such date of termination of employment.

 

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(f)                                   “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act.

 

(g)                                  A “Change in Control” occurs if:

 

(i)                         Any Person or related group of Persons (other than Executive and his Related Persons, the Company or a Person that directly or indirectly controls, is controlled by, or is under common control with, the Company) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities; or

 

(ii)                      The stockholders of the Company approve a merger or consolidation of the Company with any other corporation (or other entity), other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 66-2/3% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; provided, however, that a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities shall not constitute a Change in Control; or

 

(iii)                   The Stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; or

 

(iv)                  A majority of the members of the Board of Directors of the Company cease to be Continuing Directors.

 

(h)                                 “Code” means the Internal Revenue Code of 1986, as amended.

 

(i)                                     “Continuing Directors” means, as of any date of determination, any member of the Board of Directors who (i) was a member of such Board of Directors on the date of the Agreement, or (ii) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election.

 

(j)                                    “Exchange Act” means the Exchange Act of 1934, as amended.

 

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(k)                                 “Person” means any individual, corporation, partnership, limited liability company, trust, association or other entity.

 

(l)                                     “Related Person” means any immediate family member (spouse, partner, parent, sibling or child whether by birth or adoption) of the Executive and any trust, estate or foundation, the beneficiary of which is the Executive and/or an immediate family member of the Executive.

 

6.                                      Certain Benefits Upon Termination.  Executive’s employment shall be terminated upon the earlier of (i) the voluntary resignation of Executive with or without Good Reason; or (ii) Executive’s death or permanent disability; or (iii) upon the termination of Executive’s employment by LTC for any reason at any time.  In the event of any termination of employment, Executive shall be entitled to receive all accrued and unpaid salary, expense reimbursements, and benefits through the effective date of termination. In addition, the following provisions of this Section 6 also shall apply:

 

(a)                                 Certain Terminations.  If Executive’s employment by LTC terminates for any reason other than as a result of (i) a termination for Cause, or (ii) a voluntary resignation by Executive without a Good Reason ((i) and (ii) collectively, an “Ineligible Termination”), then Executive shall receive a lump sum severance payment equal to 3  times his Base Salary (i.e., 300% percent of his Base Salary);  and in such event, all of Executive’s stock options and/or restricted stock shall automatically vest concurrently upon such termination of employment, notwithstanding any prior existing vesting schedules; provided that if his employment terminates by reason of his death or disability, then such lump sum payment shall be paid only to the extent of the proceeds payable to the Company through a “key man” life, disability or similar insurance relating to the death or disability of Executive.

 

(b)                                 Additional Payment if Termination Occurs in Connection with a Change in Control.  In the event that Employee has received the payments described in Section 6(a), and it is determined that the provisions of Section 6(c) also are applicable (termination in connection with a Change in Control), then Employee shall be entitled to receive an additional payment equal to the amounts due to Employee pursuant to Section 6(c), less the amount of payments previously received by Employee pursuant to Section 6(a).

 

(c)                                  Payment if Termination Occurs in Connection with a Change in Control.  Notwithstanding the provisions of Section 6(a) above, in the event Executive’s employment terminates due to a reason other than an Ineligible Termination, death or disability, and if such termination occurs within (a) twenty-four (24) months following a Change in Control, or (b) prior to a Change in Control but in contemplation of a Change in Control which Change in Control actually occurs, then, in lieu of the severance payment described in Section 6(a) above, Executive shall instead receive a one-time severance payment in cash equal to two hundred fifty percent (250%) of his average annual total Form W-2 compensation for the five calendar years immediately preceding the date of termination.  In addition, in such event, all of Executive’s stock options and/or restricted stock shall automatically vest concurrently upon such termination of employment, notwithstanding any prior existing vesting schedule.

 

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(i)                         For purposes of this Section 6(c), the termination of Executive’s employment within 180 days preceding a Change of Control (due to a reason other than an Ineligible Termination, death or disability) will be deemed to have been a termination of employment in contemplation of a Change in Control.

 

(ii)                      In determining whether a termination of Executive’s employment occurring more than 180 days preceding a Change of Control (due to a reason other than an Ineligible Termination, death or disability) constitutes a termination of employment in contemplation of a Change in Control, the court or other tribunal making such determination shall consider the totality of facts and circumstances surrounding such termination of employment.

 

(iii)                   For purposes of calculating average annual total Form W-2 compensation for the five years immediately preceding the date of termination, in the event the Executive’s employment is terminated mid-year, the then current year’s Form W-2 compensation shall be annualized and shall be taken into account as the fifth year of the five year measurement period.

 

(d)                                 If Executive’s employment by LTC terminates for any reason, other than an Ineligible Termination, Executive and his then covered dependents shall remain eligible to participate in all Company provided medical and dental plans to the extent Executive elects and remains eligible for coverage under COBRA and for a maximum period of eighteen (18) months at the Company’s sole expense.

 

(e)                                  In the event that Executive’s employment terminates by reason of his death, all benefits provided in this Section 6 shall be paid to his estate or as his executor shall direct, but payment may be deferred until Executive’s executor or personal representative has been appointed and qualified pursuant to the laws in effect in Executive’s jurisdiction of residence at the time of his death.

 

(f)                                   LTC shall make all payments pursuant to this Section 6 and all of subsections 6 (a) through and including subsection 6 (e) immediately upon the date of termination of Executive’s employment, provided, however, that all such payments shall be subject to the Company’s regular withholding tax and payroll deductions.

 

(g)                                  LTC shall have no liability to Executive under Section 6(a), (b), (c) or (d) if Executive’s employment pursuant to this Agreement terminates due to an Ineligible Termination.

 

(h)                                 If any payment or distribution by the Company to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan, program or arrangement or the lapse or termination of any restriction on or the vesting or exercisability of any payment or benefit (each a “Payment”), would be subject to the excise tax imposed by Section 4999 of the Code (or any successor provision

 

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thereto) or to any similar tax imposed by state or local law (such tax or taxes are hereafter collectively referred to as the “Excise Tax”), then the aggregate amount of Payments payable to Executive shall be reduced to the aggregate amount of Payments that may be made to the Executive without incurring an excise tax (the “Safe-Harbor Amount”) in accordance with the immediately following sentence; provided that such reduction shall only be imposed if the aggregate after-tax value of the Payments retained by Executive (after giving effect to such reduction) is equal to or greater than the aggregate after-tax value (after giving effect to the Excise Tax) of the Payments to Executive without any such reduction.  Any such reduction shall be made in the following order: (i) first, any future cash payments (if any) shall be reduced (if necessary, to zero); (ii) second, any current cash payments shall be reduced (if necessary, to zero); (iii) third, all non-cash payments (other than equity or equity derivative related payments) shall be reduced (if necessary, to zero); and (iv) fourth, all equity or equity derivative payments shall be reduced.

 

7.                                      Clawback Provision.  In the event that all of the following conditions are satisfied:

 

(a)                                 A mandatory restatement of the Company’s financial results occurs and is released to the public at a time when the Company’s securities are traded on any United States securities exchange (a “Restatement”); and

 

(b)                                 The Restatement is attributable to misconduct or wrongdoing by the Executive; and

 

(c)                                  Executive has received payment of a cash bonus or has been issued any shares of LTC as a bonus within three (3) years preceding the date of the issuance and release to the public of such restatement;  and

 

(d)                                 The amount of such cash bonus or share grant has been calculated and awarded pursuant to a specific financial formula;  and

 

(e)                                  Such bonus or share grant would have been diminished based on the restated financial results had the financial formula pursuant to which the bonus or share grant has been calculated ( the “Formula”) been applied to the restated financial results (the amount of such diminution, is the “Clawback Amount”)

 

then, upon written demand from the Company setting forth in detail the basis for such demand, the Executive shall remit to the Company the Clawback Amount less the amount of any taxes paid or payable by Executive in respect of such bonus or share grant. Provided, however, that if and to the extent that (x) the Restatement results in the Company increasing expenses or reducing income, revenues or another component of the Formula during the measurement period during which the applicable bonus or share grant was calculated, but also results in (y) the Company increasing or shifting such income, revenues or expenses into a different fiscal period, such that the net effect of the Restatement is effectively neutral to the Company over the applicable time periods, then no Clawback Amount shall be due from the Executive.

 

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8.                                      Indemnification.  LTC shall indemnify, defend and hold Executive harmless from and against all claims, losses, damages, expense or liabilities, including expenses of defense and settlement, and advancement of defense costs as such costs are incurred, (collectively, “Indemnified Losses”)  to the fullest extent allowable by law and as provided in any of the LTC by-laws, charter, any indemnification agreement with the Executive, or as otherwise agreed between the parties and under any applicable laws, where such claims or Indemnified Losses are based upon or in any way arise from or are connected with his employment by LTC or his service as an officer or director of LTC or any LTC Affiliate.  To the fullest extent permitted by law, LTC shall advance to or on behalf of Executive all expenses incurred in connection with the defense of any indemnified action or claim pursuant to this Section 8.  LTC shall investigate in good faith the availability and cost of directors’ and officers’ insurance and shall include Executive as an insured in any directors’ and officers’ insurance policy it maintains.  The provisions of this Section 8 shall survive any termination or expiration of this Agreement.  Executive shall have the right to elect either (a) to arbitrate in accordance with Section 13 of this Agreement any claim by Executive to enforce the provisions of Section 8 of this Agreement, or (b) to litigate any such claim in the courts of the Company’s state of incorporation.

 

9.                                      Attorney Fees.  In the event that any action or proceeding is brought to enforce the terms and provisions of this Agreement, each party shall bear its own attorney’s fees, except that the Company shall bear all attorney’s fees and litigation costs incurred by Executive in successfully enforcing the provisions of Section 8 of this Agreement.

 

10.                               Notices.  All notices and other communications provided to either party hereto under this Agreement shall be in writing and delivered by hand, or by certified or registered mail to such party at its/his address set forth below its/his signature hereto, or at such other address as may be designated with postage prepaid, shall be deemed given when received.

 

11.                               Construction.  In constructing this Agreement, if any portion of this Agreement shall be found to be invalid or unenforceable, the remaining terms and provisions of this Agreement shall be given effect to the maximum extent permitted without considering the void, invalid or unenforceable provisions.  In construing this Agreement, the singular shall include the plural, the masculine shall include the feminine and neuter genders as appropriate, and no meaning in effect shall be given to the captions of the sections in this Agreement, which is inserted for convenience of reference only.  Without limitation to the foregoing, nothing in this Agreement is intended to violate the Sarbanes-Oxley Act of 2002, the Dodd—Frank Wall Street Reform and Consumer Protection Act of 2010, the rules and regulations of the Securities and Exchange Commission or the applicable listing standards of the NYSE, and to the extent that any provision of this Agreement would constitute such a violation, such provision shall be modified to the extent required by such Act, rule, regulation or standard, or, to the extent that such provision cannot be so modified and is found to be invalid or unenforceable, the remaining terms and provisions shall be given effect to the maximum extent permitted without considering the void, invalid or unenforceable provision.

 

Notwithstanding any other provision of the Agreement, to the extent that (i) any amount paid pursuant to the Agreement is treated as nonqualified deferred compensation pursuant to Section 409A of the Internal Revenue Code of 1986 (the “Code”) and (ii) the Executive is a “specified employee” pursuant to Section 409A(2)(B) of the Code, then such payments shall be made on the date which is six (6) months after the date of the Executive’s separation from service. In connection with the payment of any obligation that is delayed

 

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pursuant to this section, the Company shall establish an irrevocable trust to hold funds to be used for payment of such obligations.  Upon the date that such amount would otherwise be payable, the Company shall deposit into such irrevocable trust an amount equal to the obligation.  However, notwithstanding the establishment of the irrevocable trust, the Company’s obligations under the Agreement upon the Executive’s termination of employment shall constitute a general, unsecured obligation of the Company and any amount payable to the Executive shall be paid solely out of the Company’s general assets, and the Executive shall have no right to any specific assets of the Company.  The funds, if any, contained or contributed to the irrevocable trust shall remain available for the claims of the Company’s general creditors.

 

12.                               Headings.  The section headings hereof have been inserted for convenience of reference only and shall not be construed to affect the meaning, construction or effect of this Agreement.

 

13.                               Governing Law.  The provisions of this Agreement shall be construed and interpreted in accordance with the internal laws of the State of California as at the time in effect and without regard to conflict of laws provisions, except that the provisions of Section 8 of this Agreement shall be construed and interpreted in accordance with the laws of the state in which LTC is incorporated at the time that any claim under Section 8 is asserted.  The parties agree that any dispute arising under this Agreement shall be determined by binding arbitration before the American Arbitration Association (“AAA”) under the AAA’s commercial arbitration rules. Such arbitration shall be conducted in Los Angeles, California, before a single, impartial arbitrator selected by the AAA; provided, however, the parties may mutually agree after the commencement of a proceeding to hold the arbitration in another jurisdiction.  In any such arbitration, the Company shall bear and shall be solely responsible for the costs and fees imposed by the AAA and the arbitrator. The parties agree to abide by all decisions and awards rendered in such proceedings.  All decisions and awards rendered by the arbitrator shall be final, binding and conclusive.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof, and the parties consent to the non-exclusive jurisdiction of the federal and state courts in California for this purpose.  If at the time any dispute or controversy arises with respect to this Agreement the AAA is no longer providing arbitration services, then JAMS shall be substituted for the AAA for purposes of this paragraph, and the arbitration will be conducted in accordance with the then-existing and applicable rules and procedures of JAMS.

 

14.                               Entire Agreement.  Except as otherwise provided herein, this Agreement constitutes the entire agreement and supersedes all other prior employment agreements and undertakings, both written and oral, among Executive and the Company, with respect to the subject matter hereof, except that the separate Indemnification Agreement dated July 30, 2009 between the parties shall survive the execution of this Agreement. This Agreement may not be modified or amended except in writing, manually signed in pen and ink by each of the parties hereto.

 

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IN WITNESS WHEREOF, this Agreement shall be effective as of the date specified in the first paragraph of this Agreement.

 

 

	
 
    	
 
    	
LTC PROPERTIES, INC., a Maryland corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address:                    2829   Townsgate Road, Suite 350 

Westlake Village, CA 91361
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy Triche
    
	
 
    	
 
    	
Timothy Triche 
   Compensation Committee Representative
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Executive:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Clint Malin
    
	
 
    	
 
    	
Clint Malin
    

 

10Supplemental Indenture

 Exhibit 4.1 

This instrument was prepared by, 
 and when recorded should be

 returned to: 
 Richard W. Astle 

Sidley Austin LLP 
 One South Dearborn Street 

Chicago, Illinois 60603 
  

 
 SUPPLEMENTAL
INDENTURE 
 Dated as of October 28, 2014 

COMMONWEALTH EDISON COMPANY 

to 
 BNY MELLON
TRUST COMPANY OF ILLINOIS 
 and 

D.G. DONOVAN 

Trustees Under Mortgage Dated July 1, 1923, 

and Certain 
 Indentures
Supplemental Thereto 
 Providing for Issuance of 

FIRST MORTGAGE 3.10% BONDS, SERIES 117 

Due November 1, 2024 
  

 

 THIS SUPPLEMENTAL INDENTURE, dated as of
October 28, 2014, between COMMONWEALTH EDISON COMPANY, a corporation organized and existing under the laws of the State of Illinois (hereinafter called the “Company”) having an
address at 440 South LaSalle Street, Suite 3300, Chicago, Illinois 60605, party of the first part, BNY MELLON TRUST COMPANY OF ILLINOIS (formerly known as BNY Midwest Trust
Company), a trust company organized and existing under the laws of the State of Illinois having an address at 2 North LaSalle Street, Suite 1020, Chicago, Illinois 60602, and D.G. DONOVAN, an individual having an address at 2
North LaSalle Street, Suite 1020, Chicago, Illinois 60602, as Trustee and Co-Trustee, respectively, under the Mortgage of the Company dated July 1, 1923, as amended and supplemented by Supplemental Indenture dated August 1, 1944 and the
subsequent supplemental indentures hereinafter mentioned, parties of the second part (said Trustee being hereinafter called the “Trustee”, the Trustee and said Co-Trustee being hereinafter together called the
“Trustees”, and said Mortgage dated July 1, 1923, as amended and supplemented by said Supplemental Indenture dated August 1, 1944 and subsequent supplemental indentures, being hereinafter called the
“Mortgage”), 
 W I T N E S S E T H: 

WHEREAS, the Company duly executed and delivered the Mortgage to provide for the issue of, and to secure, its bonds, issuable in series and
without limit as to principal amount except as provided in the Mortgage; and 
 WHEREAS, the Company from time to time has executed and
delivered supplemental indentures to the Mortgage to provide for (i) the creation of additional series of bonds secured by the Mortgage, (ii) the amendment of certain of the terms and provisions of the Mortgage and (iii) the
confirmation of the lien of the Mortgage upon property of the Company, such supplemental indentures that are currently effective and the respective dates, parties thereto and purposes thereof, being as follows: 

 

					
	 Supplemental

Indenture Date
	  	Parties	  	Providing For
	August 1, 1944	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Edmond B. Stofft, as Trustee and Co-Trustee	  	Amendment and restatement of Mortgage dated July 1, 1923
			
	August 1, 1946	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Edmond B. Stofft, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	April 1, 1953	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Edmond B. Stofft, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	March 31, 1967	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Edward J. Friedrich, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	April 1, 1967	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Edward J. Friedrich, as Trustee and Co-Trustee	  	Amendment of Sections 3.01, 3.02, 3.05 and 3.14 of the Mortgage and issuance of First Mortgage 5-3/8% Bonds, Series Y
			
	February 28, 1969	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien

  
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	 Supplemental

Indenture Date
	  	Parties	  	Providing For
			
	May 29, 1970	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	June 1, 1971	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	April 1, 1972	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	May 31, 1972	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	June 15, 1973	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	May 31, 1974	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	June 13, 1975	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	May 28, 1976	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	June 3, 1977	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	May 17, 1978	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	August 31, 1978	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	June 18, 1979	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	June 20, 1980	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	April 16, 1981	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	April 30, 1982	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien

  
 2 

					
	 Supplemental

Indenture Date
	  	Parties	  	Providing For
			
	April 15, 1983	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	April 13, 1984	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	April 15, 1985	  	Company to Continental Illinois National Bank and Trust Company of Chicago and Donald W. Alfvin, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	April 15, 1986	  	Company to Continental Illinois National Bank and Trust Company of Chicago and M.J. Kruger, as Trustee and Co-Trustee	  	Confirmation of mortgage lien
			
	January 13, 2003	  	Company to BNY Midwest Trust Company and D.G. Donovan, as Trustee and Co-Trustee	  	Issuance of First Mortgage 3.700% Bonds, Series 99 and First Mortgage 5.875% Bonds, Series 100
			
	March 14, 2003	  	Company to BNY Midwest Trust Company and D.G. Donovan, as Trustee and Co-Trustee	  	Issuance of First Mortgage 4.70% Bonds, Series 101
			
	February 22, 2006	  	Company to BNY Midwest Trust Company and D.G. Donovan, as Trustee and Co-Trustee	  	Issuance of First Mortgage 5.90% Bonds, Series 103
			
	August 1, 2006	  	Company to BNY Midwest Trust Company and D.G. Donovan, as Trustee and Co-Trustee	  	Issuance of First Mortgage 5.95% Bonds, Series 104
			
	September 15, 2006	  	Company to BNY Midwest Trust Company and D.G. Donovan, as Trustee and Co-Trustee	  	Issuance of additional First Mortgage 5.95% Bonds, Series 104
			
	March 1, 2007	  	Company to BNY Midwest Trust Company and D.G. Donovan, as Trustee and Co-Trustee	  	Issuance of additional First Mortgage 5.90% Bonds, Series 103
			
	August 30, 2007	  	Company to BNY Midwest Trust Company and D.G. Donovan, as Trustee and Co-Trustee	  	Issuance of First Mortgage 6.15% Bonds, Series 106
			
	December 20, 2007	  	Company to BNY Midwest Trust Company and D.G. Donovan, as Trustee and Co-Trustee	  	Issuance of First Mortgage 6.45% Bonds, Series 107
			
	March 10, 2008	  	Company to BNY Midwest Trust Company and D.G. Donovan, as Trustee and Co-Trustee	  	Amendment of Section 15.06 of the Mortgage and issuance of First Mortgage 5.80% Bonds, Series 108
			
	July 12, 2010	  	Company to BNY Mellon Trust Company of Illinois and D.G. Donovan, as Trustee and Co-Trustee	  	Amendment of Section 15.06 of the Mortgage and issuance of First Mortgage 4.00% Bonds, Series 109

  
 3 

					
	 Supplemental

Indenture Date
	  	Parties	  	Providing For
			
	August 22, 2011	  	Company to BNY Mellon Trust Company of Illinois and D.G. Donovan, as Trustee and Co-Trustee	  	Amendment of Section 15.06 of the Mortgage and issuance of First Mortgage 1.95% Bonds, Series 111 and First Mortgage 3.40% Bonds, Series 112
			
	September 17, 2012	  	Company to BNY Mellon Trust Company of Illinois and D.G. Donovan, as Trustee and Co-Trustee	  	Amendment of Section 15.06 of the Mortgage and issuance of First Mortgage 3.80% Bonds, Series 113
			
	August 1, 2013	  	Company to BNY Mellon Trust Company of Illinois and D.G. Donovan, as Trustee and Co-Trustee	  	Amendment of Section 15.06 of the Mortgage and issuance of First Mortgage 4.60% Bonds, Series 114
			
	January 2, 2014	  	Company to BNY Mellon Trust Company of Illinois and D.G. Donovan, as Trustee and Co-Trustee	  	Amendment of Section 15.06 of the Mortgage and issuance of First Mortgage 2.150% Bonds, Series 115 and First Mortgage 4.700% Bonds, Series 116

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

							
	Designation	  	Maturity Date	  	Principal Amount	 
	 First Mortgage 5.875% Bonds, Series 100
	  	February 1, 2033	  	 	253,600,000	  
	 First Mortgage 4.70% Bonds, Series 101
	  	April 15, 2015	  	 	260,000,000	  
	 First Mortgage 5.90% Bonds, Series 103
	  	March 15, 2036	  	 	625,000,000	  
	 First Mortgage 5.95% Bonds, Series 104
	  	August 15, 2016	  	 	415,000,000	  
	 First Mortgage 6.15% Bonds, Series 106
	  	September 15, 2017	  	 	425,000,000	  
	 First Mortgage 6.45% Bonds, Series 107
	  	January 15, 2038	  	 	450,000,000	  
	 First Mortgage 5.80% Bonds, Series 108
	  	March 15, 2018	  	 	700,000,000	  
	 First Mortgage 4.00% Bonds, Series 109
	  	August 1, 2020	  	 	500,000,000	  
	 First Mortgage 1.95% Bonds, Series 111
	  	September 1, 2016	  	 	250,000,000	  
	 First Mortgage 3.40% Bonds, Series 112
	  	September 1, 2021	  	 	350,000,000	  
	 First Mortgage 3.80% Bonds, Series 113
	  	October 1, 2042	  	 	350,000,000	  
	 First Mortgage 4.60% Bonds, Series 114
	  	August 15, 2043	  	 	350,000,000	  
	 First Mortgage 2.150% Bonds, Series 115
	  	January 15, 2019	  	 	300,000,000	  
	 First Mortgage 4.700% Bonds, Series 116
	  	January 15, 2044	  	 	350,000,000	  
		  		  	  
	  
	 
		  	Total	  	$	5,578,600,000	  
		  		  	  
	  
	 

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

  
 4 

 WHEREAS, the Company desires, by this Supplemental Indenture, to create an additional series of
bonds to be issuable under the Mortgage, such bonds to be designated “First Mortgage 3.10% Bonds, Series 117 (hereinafter called the “bonds of Series 117”) and the terms and provisions to be contained in the bonds of Series 117
or to be otherwise applicable thereto to be as set forth in this Supplemental Indenture; and 
 WHEREAS, the bonds of Series 117 and the
Trustee’s certificate to be endorsed thereon shall be substantially in the form of the General Form of Registered Bond Without Coupons and the form of the General Form of Trustee’s Certificate set forth in Section 3.05 of the
Supplemental Indenture dated August 1, 1944 to the Mortgage with such appropriate insertions, omissions and variations in order to express the designation, date, maturity date, annual interest rate, record dates for, and dates of, payment of
interest, denominations, terms of redemption and redemption prices, and other terms and characteristics authorized or permitted by the Mortgage or not inconsistent therewith; and 

WHEREAS, the Company is legally empowered and has been duly authorized by the necessary corporate action and by an order or orders of the
Illinois Commerce Commission to make, execute and deliver this Supplemental Indenture, and to create, as an additional series of bonds of the Company, the bonds of Series 117, and all acts and things whatsoever necessary to make this Supplemental
Indenture, when executed and delivered by the Company and the Trustees, a valid, binding and legal instrument, and to make the bonds of Series 117, when authenticated by the Trustee and issued as in the Mortgage and in this Supplemental Indenture
provided, the valid, binding and legal obligations of the Company, entitled in all respects to the security of the Mortgage, as amended and supplemented, have been done and performed; 

NOW, THEREFORE, in consideration of the premises and of the sum of one dollar duly paid by the Trustees to the Company, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 
 SECTION 1.
Designation and Issuance of Bonds of Series 117. The bonds of Series 117 shall, as hereinbefore recited, be designated as the Company’s “First Mortgage 3.10% Bonds, Series 117,” and shall be issued in the
original aggregate principal amount of $250,000,000. Subject to the provisions of the Mortgage, additional bonds of Series 117 may be issued without limitation as to the aggregate principal amount thereof. 

SECTION 2. Form, Date, Maturity Date, Interest Rate and Interest Payment Dates of Bonds of Series 117.
(a) The definitive bonds of Series 117 shall be in engraved, lithographed, printed or typewritten form and shall be registered bonds without coupons; and such bonds and the Trustee’s certificate to be endorsed thereon shall be
substantially in the forms hereinbefore recited, respectively. The bonds of Series 117 shall be dated as provided in Section 3.01 of the Mortgage, as amended by Supplemental Indenture dated April 1, 1967. 

(b) The bonds of Series 117 shall mature on November 1, 2024. 

(c) The bonds of Series 117 shall bear interest at the rate of 3.10% per annum until the principal thereof shall be paid. 

(d) Interest on the bonds of Series 117 shall be payable semi-annually on the first day of May and the first day of November in each year,
commencing May 1, 2015. April 15 and October 15 in each year are hereby established as record dates for the payment of interest payable on the next succeeding interest payment dates, respectively. The interest on each bond of Series
117 so payable on any interest payment date shall, subject to the exceptions provided in Section 3.01 of the Mortgage, as amended by said Supplemental Indenture dated April 1, 1967, be paid to the person in whose name such bond is
registered at the close of business on April 15 or October 15, as the case may be, next preceding such interest payment date. 

  
 5 

 SECTION 3. Execution of Bonds of Series 117. The bonds of Series 117
shall be executed on behalf of the Company by its President or one of its Vice Presidents, manually or by facsimile signature, and shall have its corporate seal affixed thereto or a facsimile of such seal imprinted thereon, attested by its Secretary
or one of its Assistant Secretaries, manually or by facsimile signature, all as may be provided by resolution of the Board of Directors of the Company. In case any officer or officers whose signature or signatures, manual or facsimile, shall appear
upon any bond of Series 117 shall cease to be such officer or officers before such bond shall have been actually authenticated and delivered, such bond nevertheless may be issued, authenticated and delivered with the same force and effect as though
the person or persons whose signature or signatures, manual or facsimile, appear thereon had not ceased to be such officer or officers of the Company. 

SECTION 4. Medium and Places of Payment of Principal of and Interest on Bonds of Series 117; Transferability and
Exchangeability. Both the principal of and interest on the bonds of Series 117 shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private
debts, and both such principal and interest shall be payable at the office or agency of the Company in the City of Chicago, State of Illinois, or, at the option of the registered owner, at the office or agency of the Company in the Borough of
Manhattan, The City of New York, State of New York, and such bonds shall be transferable and exchangeable, in the manner provided in Sections 3.09 and 3.10 of the Mortgage, at said office or agency. No charge shall be made by the Company to the
registered owner of any bond of Series 117 for the transfer of such bond or for the exchange thereof for bonds of other authorized denominations, except, in the case of transfer, a charge sufficient to reimburse the Company for any stamp or other
tax or governmental charge required to be paid by the Company or the Trustee. 
 SECTION 5. Denominations and Numbering of
Bonds of Series 117. The bonds of Series 117 shall be issued in the denomination of $2,000 and in such multiples of $1,000 as shall from time to time hereafter be determined and authorized by the Board of Directors of the Company or
by any officer or officers of the Company authorized to make such determination, the authorization of the denomination of any bond of Series 117 to be conclusively evidenced by the execution thereof on behalf of the Company. Bonds of Series 117
shall be numbered R-1 and consecutively upwards. 
 SECTION 6. Temporary Bonds of Series 117. Until definitive
bonds of Series 117 are ready for delivery, there may be authenticated and issued in lieu of any thereof and subject to all of the provisions, limitations and conditions set forth in Section 3.11 of the Mortgage, temporary registered bonds
without coupons of Series 117. 
 SECTION 7. Redemption of Bonds of Series 117. (a) The bonds of Series 117
shall be redeemable, at the option of the Company, as a whole or in part, at any time prior to August 1, 2024 (three months prior to the maturity date of the bonds of Series 117) upon notice sent by the Company through the mail, postage
prepaid, at least thirty (30) days and not more than forty-five (45) days prior to the date fixed for redemption, to the registered holder of each bond to be redeemed in whole or in part, addressed to such holder at his address appearing
upon the registration books, at a redemption price equal to the greater of 
 (1) 100% of the principal amount of the bonds
of Series 117 to be redeemed, plus accrued and unpaid interest up to but excluding the redemption date, or 

  
 6 

 (2) as determined by the Quotation Agent (as hereinafter defined), the sum of the
present values of the remaining scheduled payments of principal and interest on the bonds of Series 117 to be redeemed that would be due if such bonds of Series 117 matured on August 1, 2024 but for the redemption (not including any portion of
payments of interest accrued as of the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as hereinafter defined) plus twelve and
one-half (12.5) basis points, plus accrued and unpaid interest up to but excluding the redemption date. 
 The bonds of Series 117 shall be redeemable,
at the option of the Company, as a whole or in part, at any time on or after August 1, 2024 upon notice sent by the Company through the mail, postage prepaid, at least thirty (30) days and not more than forty-five (45) days prior to
the date fixed for redemption, to the registered holder of each bond to be redeemed in whole or in part, addressed to such holder at his address appearing upon the registration books, at a redemption price equal to 100% of the principal amount of
the bonds of Series 117 to be redeemed, plus accrued and unpaid interest on those bonds of Series 117 up to but excluding the redemption date. 

Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the bonds
of Series 117 or portions of the bonds of Series 117 called for redemption. 
 (b) For purposes of the foregoing Section 7(a), the
following terms shall have the respective meanings set forth below: 
 “Adjusted Treasury Rate” means, with
respect to any redemption date, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to
the Comparable Treasury Price for the redemption date. 
 “Business Day” means any day that is not a day on
which banking institutions in New York City are authorized or required by law or regulation to close. 
 “Comparable
Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the bonds of Series 117 to be redeemed (assuming, for this purpose, that the bonds of Series
117 matured on August 1, 2024) that would be used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the bonds of
Series 117. 
 “Comparable Treasury Price” means, with respect to any redemption date: 

(i) the average of the Reference Treasury Dealer Quotations for that redemption date, after excluding the highest and lowest of
the Reference Treasury Dealer Quotations; or 
 (ii) if the Quotation Agent obtains fewer than three Reference Treasury
Dealer Quotations, the average of all Reference Treasury Dealer Quotations so received. 
 “Quotation Agent”
means the Reference Treasury Dealer appointed by the Company. 

  
 7 

 “Reference Treasury Dealer” means (1) each of (a) RBC
Capital Markets, LLC and (b) a Primary Treasury Dealer (as defined below) selected by each of U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC, and in each case their respective successors and affiliates, unless any of them ceases
to be a primary U.S. Government securities dealer in the United States of America (“Primary Treasury Dealer”), in which case the Company shall substitute another Primary Treasury Dealer; and (2) any other Primary Treasury
Dealer selected by the Company. 
 “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to
the Quotation Agent by that Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding that redemption date. 

(c) In case the Company shall desire to exercise such right to redeem and pay off all or any part of such bonds of Series 117 as hereinbefore
provided, it shall comply with all the terms and provisions of Article V of the Mortgage applicable thereto, and such redemption shall be made under and subject to the terms and provisions of Article V and in the manner and with the effect therein
provided, but at the time or times and upon mailing of notice, all as hereinbefore set forth in this Section 7. No publication of notice of any redemption of any bonds of Series 117 shall be required under Section 5.03(a) of the Mortgage.

 SECTION 8. Book-Entry Only System. It is intended that the bonds of Series 117 be registered so as to participate in
the securities depository system (the “DTC System”) with The Depository Trust Company (“DTC”), as set forth herein. The bonds of Series 117 shall be initially issued in the form of a fully registered bond or bonds
in the name of Cede & Co., or any successor thereto, as nominee for DTC. The Company and the Trustees are authorized to execute and deliver such letters to or agreements with DTC as shall be necessary to effectuate the DTC System, including
the Letter of Representations from the Company and the Trustees to DTC relating to the bonds of Series 117 (the “Representation Letter”). In the event of any conflict between the terms of the Representation Letter and the Mortgage,
the terms of the Mortgage shall control. DTC may exercise the rights of a bondholder only in accordance with the terms hereof applicable to the exercise of such rights. 

With respect to bonds of Series 117 registered in the name of DTC or its nominee, the Company and the Trustees shall have no responsibility or
obligation to any broker-dealer, bank or other financial institution for which DTC holds such bonds from time to time as securities depository (each such broker-dealer, bank or other financial institution being referred to herein as a
“Depository Participant”) or to any person on behalf of whom such a Depository Participant holds an interest in such bonds (each such person being herein referred to as an “Indirect Participant”). Without limiting
the immediately preceding sentence, the Company and the Trustees shall have no responsibility or obligation with respect to: 

(i) the accuracy of the records of DTC, its nominee or any Depository Participant with respect to any ownership interest in the
bonds of Series 117, 
 (ii) the delivery to any Depository Participant or any Indirect Participant or any other person,
other than a registered owner of a bond of Series 117, of any notice with respect to the bonds of Series 117, including any notice of redemption, 

(iii) the payment to any Depository Participant or Indirect Participant or any other person, other than a registered owner of a
bond of Series 117, of any amount with respect to principal of, redemption premium, if any, on, or interest on, the bonds of Series 117, or 

  
 8 

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

So long as certificates for the bonds of Series 117 are not issued as hereinafter provided, the Company and the Trustees may treat DTC or any successor
securities depository as, and deem DTC or any successor securities depository to be, the absolute owner of such bonds for all purposes whatsoever, including, without limitation, (1) the payment of principal and interest on such bonds,
(2) giving notice of matters (including redemption) with respect to such bonds and (3) registering transfers with respect to such bonds. While a bond of Series 117 is in the DTC System, no person other than DTC or its nominee shall receive
a certificate with respect to such bond. 
 In the event that: 

(a) DTC notifies the Company that it is unwilling or unable to continue as depositary or if DTC ceases to be a clearing agency
registered under applicable law and a successor depositary is not appointed by the Company within 90 days, 
 (b) the Company
determines that the beneficial owners of the bonds of Series 117 should be able to obtain certificated bonds and so notifies the Trustees in writing or 

(c) there shall have occurred and be continuing a completed default or any event which after notice or lapse of time or both
would be a completed default with respect to the bonds of Series 117, 
 the bonds of Series 117 shall no longer be restricted to being registered in the
name of DTC or its nominee. In the case of clause (a) of the preceding sentence, the Company may determine that the bonds of Series 117 shall be registered in the name of and deposited with a successor depository operating a securities
depository system, as may be acceptable to the Company and the Trustees, or such depository’s agent or designee, and if the Company does not appoint a successor securities depository system within 90 days, then the bonds may be registered in
whatever name or names registered owners of bonds transferring or exchanging such bonds shall designate, in accordance with the provisions hereof. 

Notwithstanding any other provision of the Mortgage to the contrary, so long as any bond of Series 117 is registered in the name of DTC or its
nominee, all payments with respect to principal of and interest on such bond and all notices with respect to such bond shall be made and given, respectively, in the manner provided in the Representation Letter. 

SECTION 9. Legends. So long as the bonds of Series 117 are held by DTC, such bonds of Series 117 shall bear the following
legend: 
 Unless this bond is presented by an authorized representative of the Depository Trust Company, a New York
corporation (“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), any transfer, pledge or other use hereof for value or otherwise by a person is wrongful inasmuch as the
registered owner hereof, Cede & Co., has an interest herein. 
 SECTION 10. Confirmation of Lien. The Company,
for the equal and proportionate benefit and security of the holders of all bonds at any time issued under the Mortgage, hereby confirms the lien of the Mortgage upon, and hereby grants, bargains, sells, transfers, assigns, pledges, mortgages,
warrants and conveys unto the Trustees, all property of the Company and all property hereafter acquired by the 

  
 9 

 
Company, other than (in each case) property which, by virtue of any of the provisions of the Mortgage, is excluded from such lien, and hereby confirms the title of the Trustees (as set forth in
the Mortgage) in and to all such property. Without in any way limiting or restricting the generality of the foregoing, there is specifically included within the confirmation of lien and title hereinabove expressed the property of the Company legally
described on Exhibit A attached hereto and made a part hereof. 
 SECTION 11. Amendment of Provision of
Mortgage. (a) Section 15.06 of the Mortgage shall be amended and restated to read in its entirety as follows: 

SECTION 15.06. The Trustee and any successor to the Trustee may resign and be discharged from the trusts created by this
Mortgage by giving notice thereof in writing to the Company, specifying the date when such resignation shall take effect, and by giving notice thereof to the bondholders in the manner and to the extent provided under Section 15.10(c), and by
publishing such notice at least once a week for three successive calendar weeks (the first such publication to be not less than thirty days nor more than sixty days prior to the effective date of such resignation) in one authorized newspaper in the
City of Chicago, State of Illinois, and in one authorized newspaper in the Borough of Manhattan, The City of New York, State of New York. Subject to the provisions of Sections 15.04 and 15.05, such resignation shall take effect on the date specified
in such notice unless previously a successor Trustee shall have been appointed as hereinafter provided, in which event such resignation shall take effect upon the appointment of such successor Trustee. The Co-Trustee and any successor to the
Co-Trustee may resign at any time and be discharged from the trusts hereby created by giving the Trustee and the Company notice in writing of such resignation, specifying a date when such resignation shall take effect, which shall be at least thirty
days after the giving of such notice. Such resignation shall, subject to the provisions of Sections 15.04 and 15.05, take effect on the date specified in such notice unless previously a successor trustee shall have been appointed as hereinafter
provided, in which event such resignation shall take effect immediately upon the appointment of such a successor trustee. 

Either of the Trustees or any successor trustee may be removed at any time by the holders of a majority in principal amount of
the bonds issued hereunder and at the time outstanding, upon payment to the trustee so removed of all moneys then due to it or him hereunder, by an instrument or concurrent instruments in writing, signed in duplicate by such holders. One copy shall
be filed with the Company and the other with the trustee so removed. 
 The Co-Trustee and any successor to the Co-Trustee
may be removed at any time by an instrument in writing signed in duplicate by the Trustee, one copy of which shall be filed with the Company and the other delivered to the Co-Trustee so removed. 

In case at any time either of the Trustees or any successor trustee shall resign, die, be dissolved or be removed or otherwise
shall become disqualified to act or incapable of acting, or in case control of the Trustee or of any successor trustee, or of its officers shall be taken over by any public officer or officers, a successor trustee may be appointed by the holders of
a majority in principal amount of the bonds issued hereunder and at the time outstanding by an instrument or concurrent instruments in writing signed in duplicate by such holders, and filed, one copy with the retiring trustee and the other with the
successor trustee, notification thereof being given to the Company by such successor trustee; but until a successor trustee shall be so appointed by the bondholders as herein authorized, the Company, by an instrument in writing, executed by order of
the Board of Directors, shall in any such case appoint a successor to the Trustee and the Trustee shall, by an instrument in writing in any such case, appoint a successor to the Co-Trustee. Every such successor to the Trustee so appointed by the
bondholders, by a court of competent 

  
 10 

 
jurisdiction or by the Company shall be a bank or trust company in good standing organized and doing business under the laws of the United States or of any State, having an office in the United
States of America, and (a) which shall be a corporation having a combined capital and surplus of not less than $5,000,000, (b) which shall be authorized under the laws of the jurisdiction of incorporation to exercise corporate trust
powers, and (c) which shall be subject to supervision or examination by a Federal or State authority. If such successor Trustee publishes reports of condition at least annually, pursuant to law or to the requirements of such supervising or
examining authority, the combined capital and surplus of such successor Trustee shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. Every such successor trustee appointed by the
bondholders or by the Trustee in succession to the Co-Trustee shall always be an individual, a citizen of the United States of America, unless otherwise required by law. 

Anything hereinabove to the contrary notwithstanding, in case at any time the Co-Trustee, or any successor thereto, shall die,
become incapable of acting, resign or be removed, all the estates, properties, rights, powers, trusts, duties and obligations of the Trustees hereunder shall, to the extent permitted by law, vest in and be exercised by the Trustee, without the
appointment of a successor Co-Trustee. 
 If in a proper case no appointment of a successor to the Trustee or of a successor
to the Co-Trustee shall be made pursuant to the foregoing provisions of this Article XV within six months after a vacancy shall have occurred in the office of trustee, the holder of any bond or the retiring Trustee or Co-Trustee may apply to any
court, State or Federal having jurisdiction to appoint a successor trustee, and such court may thereupon, after such notice, if any, as such court may deem proper and prescribe, appoint a successor to the Trustee or to the Co-Trustee, as the case
may be. 
 (b) The holders of the bonds of Series 117 shall be deemed to have approved the foregoing amendment; however, the foregoing
amendment shall not become effective until such time as it shall have received the requisite approvals under the provisions of the Mortgage. 

SECTION 12. Miscellaneous. The terms and conditions of this Supplemental Indenture shall be deemed to be a part of
the terms and conditions of the Mortgage for any and all purposes. The Mortgage, as supplemented by said indentures supplemental thereto dated subsequent to August 1, 1944 and referred to in the recitals of this Supplemental Indenture, and as
further supplemented by this Supplemental Indenture, is in all respects hereby ratified and confirmed. 
 This Supplemental Indenture shall
bind and, subject to the provisions of Article XIV of the Mortgage, inure to the benefit of the respective successors and assigns of the parties hereto. 

Although this Supplemental Indenture is dated as of October 28, 2014, it shall be effective only from and after the actual time of its
execution and delivery by the Company and the Trustees on the date indicated by their respective acknowledgments hereto annexed. 

Notwithstanding anything to the contrary contained in the Mortgage, the maximum amount of indebtedness secured by the Mortgage shall not
exceed 200% of the aggregate stated principal amount of the bonds of each series presently outstanding under, and secured by, the Mortgage, as set forth in the Recitals to this Supplemental Indenture, except to the extent such maximum amount may be
adjusted by a subsequent recorded supplemental indenture (which adjustment, and the corresponding supplemental indenture, shall not require the consent or approval of the holders of any bonds then outstanding under the Mortgage, including the
holders of the bonds of Series 117). 

  
 11 

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

  
 12 

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

 

			
	COMMONWEALTH EDISON COMPANY
		
	By:	 	/s/ Joseph R. Trpik, Jr.
		 	Joseph R. Trpik, Jr.
		 	Senior Vice President,
		 	Chief Financial Officer and Treasurer

  

	
	ATTEST:
	
	/s/ Lawrence Bachman
	Lawrence Bachman
	Assistant Secretary

  

			
	BNY MELLON TRUST COMPANY
OF ILLINOIS
		
	By:	 	/s/ R. Tarnas
		 	R. Tarnas
		 	Vice President

  

	
	ATTEST:
	
	/s/ M. Callahan
	M. Callahan
	Vice President

  

	
	/s/ D.G. Donovan
	D.G. Donovan

  
 S-1 

 STATE OF ILLINOIS         ) 

                          
                   ) 
 COUNTY OF
COOK          ) 
 I, MARIA D. MUNGUIA, a Notary Public in and for DuPage County, in the
State aforesaid, DO HEREBY CERTIFY that Joseph R. Trpik, Jr., Senior Vice President, Chief Financial Officer and Treasurer of Commonwealth Edison Company, an Illinois corporation, one of the parties described in and which executed the foregoing
instrument, and Lawrence Bachman, Assistant Secretary of said corporation, who are both personally known to me to be the same persons whose names are subscribed to the foregoing instrument as such Senior Vice President, Chief Financial Officer and
Treasurer and Assistant Secretary, respectively, and who are both personally known to me to be Senior Vice President, Chief Financial Officer and Treasurer and Assistant Secretary, respectively, of said corporation, appeared before me this day in
person and severally acknowledged that they signed, executed and delivered said instrument as their free and voluntary act as such Senior Vice President, Chief Financial Officer and Treasurer and Assistant Secretary, respectively, of said
corporation, and as the free and voluntary act of said corporation, for the uses and purposes therein set forth. 
 GIVEN under my hand and
notarial seal this 28th day of October, A.D. 2014. 
  

	
	/s/ Maria D. Munguia
	Maria D. Munguia
	Notary Public

 (NOTARIAL SEAL) 
 My
Commission expires June 7, 2016. 

  
 S-2 

 STATE OF ILLINOIS         ) 

                          
                   ) 
 COUNTY OF
COOK          ) 
 I, JULIE MEADORS, a Notary Public in and for said County, in the State
aforesaid, DO HEREBY CERTIFY that R. TARNAS, Vice President of BNY Mellon Trust Company of Illinois, an Illinois trust company, one of the parties described in and which executed the foregoing instrument, and M. CALLAHAN, Vice President of said
trust company, who are both personally known to me to be the same persons whose names are subscribed to the foregoing instrument as such Vice Presidents, and who are both personally known to me to be Vice Presidents of said trust company, appeared
before me this day in person and severally acknowledged that they signed, executed and delivered said instrument as their free and voluntary act as such Vice Presidents of said trust company, and as the free and voluntary act of said trust company,
for the uses and purposes therein set forth. 
 GIVEN under my hand and notarial seal this
28th day of October, A.D. 2014. 
  

	
	/s/ Julie Meadors
	Julie Meadors
	Notary Public

 (NOTARIAL SEAL) 
 My
Commission expires February 6, 2016. 

  
 S-3 

 STATE OF ILLINOIS         ) 

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

GIVEN under my hand and notarial seal this 28th day of October, A.D. 2014. 

 

	
	/s/ Julie Meadors
	Julie Meadors
	Notary Public

 (NOTARIAL SEAL) 
 My
Commission expires February 6, 2016. 

  
 S-4 

 EXHIBIT A 

LEGAL DESCRIPTIONS 

[omitted]

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