Document:

Document

        Exhibit 10.13

FORM OF DIRECTOR INDEMNIFICATION AGREEMENT

INDEMNIFICATION AGREEMENT
This Indemnification Agreement (this "Agreement") is made and entered into, effective, by and between Dell Technologies Inc., a Delaware corporation (the "Company"), and ("Indemnitee"). This Agreement shall supersede the prior indemnification agreement between the Company and Indemnitee dated as of                        and, for the avoidance of doubt, this Agreement shall apply to any Expenses, Indemnifiable Claims and Indemnifiable Losses incurred or arising on, prior to or after the date of this Agreement.

Recitals

A.Competent and experienced persons are reluctant to serve or to continue to serve as directors or officers of corporations unless they are provided with adequate protection through insurance or indemnification (or both) against claims against them arising out of their service and activities as directors.

B.Uncertainties relating to the availability of adequate insurance for directors and officers have increased the difficulty for corporations to attract and retain competent and experienced persons to serve as directors or officers.

C.The Board of Directors of the Company (the "Board") has determined that the continuation of present trends in litigation will make it more difficult to attract and retain competent and experienced persons to serve as directors or officers of the Company and, in some cases, of its subsidiaries, that this situation is detrimental to the best interests of the Company's stockholders and that the Company should act to assure its directors and officers that there will be increased certainty of adequate protection in the future.

D.It is reasonable, prudent and necessary for the Company to obligate itself contractually to indemnify its directors and officers to the fullest extent permitted by applicable law in order to induce them to serve or continue to serve as directors or officers of the Company or its subsidiaries.

E.Indemnitee’s willingness to continue to serve in his or her current capacity is predicated, in substantial part, upon the Company's willingness to indemnify him or her to the fullest extent permitted by the laws of the State of Delaware and upon the other undertakings set forth in this Agreement.

F.In recognition of the need to provide Indemnitee with substantial protection against personal liability, in order to procure Indemnitee's continued service, and to enhance Indemnitee's ability to serve the Company in an effective manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of any amendment to the Company's Certificate of Incorporation or Bylaws (collectively, the "Constituent Documents"), any Change of Control (as defined in Section 1(a)) or any change in the composition of the Board), the Company wishes to provide in this Agreement for the indemnification of and the advancement of Expenses (as defined in Section 1(e)) to Indemnitee as set forth in this Agreement.

			
	

Active.28150070.8

Now, therefore, for and in consideration of the foregoing premises, Indemnitee's agreement to continue to serve the Company in his or her current capacity and the mutual covenants and agreements contained herein, the parties hereby agree as follows:

1.Certain Definitions — In addition to terms defined elsewhere herein, the following terms shall have the respective meanings indicated below when used in this Agreement:

(a)"Change of Control" shall mean the occurrence of any of the following events:

(i)The acquisition after the date of this Agreement by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person"), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 15% or more of either the then outstanding shares of common stock 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 paragraph (i), the following acquisitions shall not constitute a Change of Control:

(A)any acquisition directly from the Company or any Controlled Affiliate of the Company;

(B)any acquisition by the Company or any Controlled Affiliate of the Company;

(C)any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Controlled Affiliate of the Company;

(D)any acquisition by Mr. Michael S. Dell, his Affiliates or Associates (as such terms are defined in Rule 12b-2 promulgated under the Exchange Act), his heirs or any trust or foundation to which he has transferred or may transfer Outstanding Company Common Stock or Outstanding Company Voting Securities; or

(E)any acquisition by any entity or its security holders pursuant to a transaction that complies with clauses (A), (B), and (C) of paragraph (iii) below;

(ii)Individuals who, as of the date of this Agreement, constitute the Board (collectively, the "Incumbent Directors") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual who becomes a director of the Company subsequent to the date of this Agreement and whose election or appointment by the Board or nomination for election by the Company's stockholders was approved by a vote of at least a majority of the then Incumbent Directors, shall be considered as an 
			
	

Incumbent Director, unless such individual's 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;

(iii)Consummation of a reorganization, merger, consolidation, sale or other disposition of all or substantially all the assets of the Company or an acquisition of assets of another corporation (a "Business Combination"), unless, in each case, following such Business Combination (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 Business Combination 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 Business Combination (including a corporation that 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 Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any employee benefit plan (or related trust) of the Company or the corporation resulting from such Business Combination and any Person referred to in clause (D) of paragraph (i) above) beneficially owns, directly or indirectly, 15% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership of the Company existed prior to the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were Incumbent Directors at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; 

(iv)Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company; or

(v)The occurrence of any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) under the Exchange Act, whether or not the Company is then subject to such reporting requirement.

Notwithstanding the foregoing, in no event shall a Change in Control be deemed to have occurred if, after the occurrence of any of the events described in Sections 1(a)(i), 1(a)(ii), 1(a)(iii), 1(a)(iv) or 1(a)(v), Dell Technologies Inc., a Delaware corporation, directly or indirectly through a Controlled Affiliate, beneficially owns a majority of the combined voting 
			
	

power of the then outstanding voting securities entitled to vote generally in the election of directors.

(b)"Claim" shall mean (i) any threatened, asserted, pending or completed claim, demand, action, suit or proceeding (including any cross claim or counterclaim in any action, suit or proceeding), whether civil, criminal, administrative, arbitrative, investigative or other and whether made pursuant to federal, state or other law (including securities laws); and (ii) any inquiry or investigation (including discovery), whether made, instituted or conducted by the Company or any other party, including any federal, state or other governmental entity, that Indemnitee in good faith believes might lead to the institution of any such claim, demand, action, suit or proceeding.

(c)"Controlled Affiliate" shall mean any corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise, whether or not for profit, that is directly or indirectly controlled by the Company.  For purposes of this definition, the term "control" shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of an entity or enterprise, whether through the ownership of voting securities, through other voting rights, by contract or otherwise; provided, however, that direct or indirect beneficial ownership of capital stock or other interests in an entity or enterprise entitling the holder to cast 20% or more of the total number of votes generally entitled to be cast in the election of directors (or persons performing comparable functions) of such entity or enterprise shall be deemed to constitute "control" for purposes of this definition.

(d)"Disinterested Director" shall mean a director of the Company who is not and was not a party to the Claim with respect to which indemnification is sought by Indemnitee.

(e)"Expenses" shall mean all costs, expenses (including attorneys' and experts' fees and expenses) and obligations paid or incurred in connection with investigating, defending (including affirmative defenses and counterclaims), being a witness in or participating in (including on appeal), or preparing to investigate, defend, be a witness in or participate in (including on appeal), any Claim relating to an Indemnifiable Claim.

(f)"Indemnifiable Claim" shall mean any Claim based upon, arising out of or resulting from any of the following:

(i)Any actual, alleged or suspected act or failure to act by Indemnitee in his or her capacity as a director or officer of the Company or as a director, officer, employee, member, manager, trustee, fiduciary or agent (collectively, a “Representative”) of any Controlled Affiliate or other corporation, limited liability company, partnership, joint venture, employee benefit plan, trust or other entity or enterprise, whether or not for profit, as to which Indemnitee is or was serving at the request of the Company as a Representative;

(ii)Any actual, alleged or suspected act or failure to act by Indemnitee with respect to any business, transaction, communication, filing, 
			
	

disclosure or other activity of the Company or any other entity or enterprise referred to in clause (i) of this Section 1(f); or

(iii)Indemnitee's status as a current or former director or officer of the Company or as a current or former Representative of the Company or any other entity or enterprise referred to in clause (i) of this Section 1(f) or any actual, alleged or suspected act or failure to act by Indemnitee in connection with any obligation or restriction imposed upon Indemnitee by reason of such status.

In addition to any service at the actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be serving or to have served at the request of the Company as a Representative of another entity or enterprise if Indemnitee is or was serving as a director, officer, employee, member, manager, trustee, fiduciary or agent of such entity or enterprise and (A) such entity or enterprise is or at the time of such service was a Controlled Affiliate, (B) such entity or enterprise is or at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or a Controlled Affiliate or (C) the Company or a Controlled Affiliate directly or indirectly caused Indemnitee to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity.

(g)"Indemnifiable Losses" shall mean any and all Losses relating to, arising out of or resulting from any Indemnifiable Claim. 

(h)"Independent Counsel" shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and, as of the time of selection with respect to any Indemnifiable Claim, is not nor in the past five years has been retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or other indemnitees under similar indemnification agreements) or (ii) any other party to the Indemnifiable Claim giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

(i)"Losses" means any and all Expenses, damages (including punitive, exemplary and the multiplied portion of any damages), losses, liabilities, judgments, payments, fines, penalties (whether civil, criminal or other), awards and amounts paid in settlement (including all interest, assessments and other charges paid or incurred in connection with or with respect to any of the foregoing).

2.Indemnification Obligation — Subject to Section 9, the Company shall indemnify, defend and hold harmless Indemnitee, to the fullest extent permitted by the laws of the State of Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all Indemnifiable Claims and Indemnifiable Losses.

			
	

3.Exclusions – Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnification payment in connection with any Claim involving Indemnitee:

(a)for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess Losses beyond the amount paid under any insurance policy or other indemnity provision; or

(b)for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law, (ii) any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act) or (iii) any reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; or

(c)except as provided in Sections 5 and 24 of this Agreement, in connection with any Claim initiated by Indemnitee, including any Claim initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Claim prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

4.Advancement of Expenses — Indemnitee shall have the right to advancement by the Company prior to the final disposition of any Indemnifiable Claim of any and all Expenses relating to, arising out of or resulting from any Indemnifiable Claim paid or incurred by Indemnitee and as to which Indemnitee provides supporting documentation.  Indemnitee's right to such advancement is not subject to the satisfaction of any standard of conduct.  Without limiting the generality or effect of the foregoing, within 15 calendar days after any request by Indemnitee, the Company shall, in accordance with such request (but without duplication), (a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses or (c) reimburse Indemnitee for such Expenses; provided, however, that Indemnitee shall repay, without interest, any amounts actually advanced to Indemnitee that, at the final disposition of the Indemnifiable Claim to which the advance related, were in excess of amounts paid or incurred by Indemnitee with respect to Expenses relating to, arising out of or resulting from such Indemnifiable Claim.  Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement, which shall constitute an undertaking providing that Indemnitee undertakes to repay the amounts advanced (without interest) to the extent that it ultimately is determined that Indemnitee is not entitled to be 
			
	

indemnified by the Company.  No other form of undertaking shall be required other than the execution of this Agreement.  This Section 4 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 3. 

5.Indemnification for Additional Expenses — Without limiting the generality or effect of the foregoing, the Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within 15 calendar days of such request accompanied by supporting documentation for specific Expenses to be reimbursed or advanced, any and all Expenses paid or incurred by Indemnitee in connection with any Claim made, instituted or conducted by Indemnitee for (a) indemnification or reimbursement or advance payment of Expenses by the Company under any provision of this Agreement or under any other agreement or provision of the Constituent Documents now or hereafter in effect relating to Indemnifiable Claims or (b) recovery under any directors' and officers' liability insurance policies maintained by the Company, regardless in each case of whether Indemnitee ultimately is determined to be entitled to such indemnification, reimbursement, advance or insurance recovery, as the case may be; provided, however, that Indemnitee shall return, without interest, any such advance of Expenses (or portion thereof) that remains unspent at the final disposition of the Claim to which the advance related.

6.Indemnification For Expenses of a Witness — Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of an Indemnifiable Claim, a witness or otherwise asked to participate in any Claim to which Indemnitee is not a party, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith.

7.Partial Indemnity — If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Indemnifiable Loss but not for all of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

8.Procedure for Notification — To obtain indemnification under this Agreement with respect to an Indemnifiable Claim or Indemnifiable Loss, Indemnitee shall submit to the Company a written request therefor, including a brief description (based upon information then available to Indemnitee) of such Indemnifiable Claim or Indemnifiable Loss.  If, at the time of the receipt of such request, the Company has directors' and officers' liability insurance in effect under which coverage for such Indemnifiable Claim or Indemnifiable Loss is potentially available, the Company shall give prompt written notice of such Indemnifiable Claim or Indemnifiable Loss to the applicable insurers in accordance with the procedures set forth in the applicable policies.  The Company shall provide to Indemnitee a copy of such notice delivered to the applicable insurers and copies of all subsequent correspondence between the Company and such insurers regarding the Indemnifiable Claim or Indemnifiable Loss, in each case substantially concurrently with the delivery or receipt thereof by the Company.  The failure by Indemnitee to timely notify the Company of any Indemnifiable Claim or Indemnifiable Loss shall not relieve the Company from any liability hereunder unless, and only to the extent that, the Company did not otherwise learn of such Indemnifiable Claim or Indemnifiable Loss and such 
			
	

failure results in forfeiture by the Company of substantial defenses, rights or insurance coverage.

9.Determination of Right to Indemnification — 

(a)To the extent that Indemnitee shall have been successful on the merits or otherwise in defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter therein, including dismissal without prejudice, Indemnitee shall be indemnified against all Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim in accordance with Section 2 and no Standard of Conduct Determination (as defined in paragraph (b) below) shall be required.

(b)To the extent that the provisions of Section 9(a) are inapplicable to an Indemnifiable Claim that shall have been finally disposed of, any determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law that is a legally required condition precedent to indemnification of Indemnitee hereunder against Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim (a "Standard of Conduct Determination") shall be made as follows:

(i)If a Change of Control has not occurred, or if a Change of Control has occurred but Indemnitee has requested that the Standard of Conduct Determination be made pursuant to this clause (i): 

(A)By a majority vote of the Disinterested Directors, even if less than a quorum of the Board;

(B)If such Disinterested Directors so direct, by a majority vote of a committee of Disinterested Directors designated by a majority vote of all Disinterested Directors; or

(C)If there are no such Disinterested Directors, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee; and

(ii)If a Change of Control has occurred and Indemnitee has not requested that the Standard of Conduct Determination be made pursuant to clause (i) above, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee.

Indemnitee will cooperate with the person or persons making such Standard of Conduct Determination, including providing to such person or persons, upon reasonable advance request, any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  The Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within 15 calendar days of such request, accompanied by supporting documentation for specific expenses to be reimbursed or advanced, any and all costs and expenses (including attorneys' and experts' fees and expenses) incurred by Indemnitee in so 
			
	

cooperating with the person making such Standard of Conduct Determination.

(c)The Company shall use its reasonable best efforts to cause any Standard of Conduct Determination required under Section 9(b) to be made as promptly as practicable.  If (i) the person or persons empowered or selected under Section 9(b) to make the Standard of Conduct Determination shall not have made a determination within 30 days after the later of (A) receipt by the Company of written notice from Indemnitee advising the Company of the final disposition of the applicable Indemnifiable Claim (the date of such receipt being the "Notification Date") and (B) the selection of an Independent Counsel, if such determination is to be made by Independent Counsel, that is permitted under the provisions of Section 9(e) to make such determination and (ii) Indemnitee shall have fulfilled his or her obligations set forth in the second sentence of Section 9(b), then Indemnitee shall be deemed to have satisfied the applicable standard of conduct; provided, however, that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person making such determination in good faith requires such additional time to obtain or evaluate documentation or information relating thereto.

(d)If (i) Indemnitee shall be entitled to indemnification hereunder against any Indemnifiable Losses pursuant to Section 9(a), (ii) no determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law is a legally required condition precedent to indemnification of Indemnitee hereunder against any Indemnifiable Losses or (iii) Indemnitee has been determined or deemed pursuant to Section 9(b) or (c) to have satisfied any applicable standard of conduct under Delaware law that is a legally required condition precedent to indemnification of Indemnitee hereunder against any Indemnifiable Losses, then the Company shall pay to Indemnitee, within 15 calendar days after the later of (x) the Notification Date with respect to the Indemnifiable Claim or portion thereof to which such Indemnifiable Losses are related, out of which such Indemnifiable Losses arose or from which such Indemnifiable Losses resulted and (y) the earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) above shall have been satisfied, an amount equal to the amount of such Indemnifiable Losses.

(e)If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 9(b)(i), the Independent Counsel shall be selected by the Board and the Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected.  If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 9(b)(ii), the Independent Counsel shall be selected by Indemnitee and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected.  In either case, Indemnitee or the Company, as applicable, may, within five business days after receiving written notice of selection from the other, deliver to the other a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not satisfy the criteria set forth in the definition of "Independent Counsel" in Section 1(h) and the objection shall set forth with particularity the factual basis of such 
			
	

assertion.  Absent a proper and timely objection, the person or firm so selected shall act as Independent Counsel.  If such written objection is properly and timely made and substantiated, (i) the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit and (ii) the non-objecting party may, at its option, select an alternative Independent Counsel and give written notice to the other party advising such other party of the identity of the alternative Independent Counsel so selected, in which case the provisions of the two immediately preceding sentences and clause (i) of this sentence shall apply to such subsequent selection and notice.  If applicable, the provisions of clause (ii) of the immediately preceding sentence shall apply to successive alternative selections. If no Independent Counsel that is permitted under the foregoing provisions of this Section 9(e) to make the Standard of Conduct Determination shall have been selected within 30 days after the Company gives its initial notice pursuant to the first sentence of this Section 9(e) or Indemnitee gives its initial notice pursuant to the second sentence of this Section 9(e), as the case may be, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware for resolution of any objection that has been made by the Company or Indemnitee to the other's selection of Independent Counsel or for the appointment as Independent Counsel of a person selected by the Court or by such other person as the Court shall designate, and the person or firm with respect to whom all objections are so resolved or the person or firm so appointed will act as Independent Counsel.  In all events, the Company shall pay all of the reasonable fees and expenses of the Independent Counsel incurred in connection with the Independent Counsel's determination pursuant to Section 9(b).

10.Presumption of Entitlement — In making any Standard of Conduct Determination, the person or persons making such determination shall presume that Indemnitee has satisfied the applicable standard of conduct, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption.   Any Standard of Conduct Determination that is adverse to Indemnitee may be challenged by Indemnitee in the Court of Chancery of the State of Delaware.  No determination by the Company (including by its directors or any Independent Counsel) that Indemnitee has not satisfied any applicable standard of conduct shall be a defense to any Claim by Indemnitee for indemnification by the Company hereunder or create a presumption that Indemnitee has not met any applicable standard of conduct.

11.No Other Presumption — For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, or an entry of an order of probation prior to judgment, shall not create a presumption that Indemnitee did not meet any applicable standard of conduct or that indemnification hereunder is otherwise not permitted.

12.Non-Exclusivity — The rights of Indemnitee hereunder shall be in addition to any other rights Indemnitee may have under the Constituent Documents, the substantive laws of the State of Delaware, any other contract or otherwise (collectively, "Other Indemnity Provisions").  No amendment, alteration or 
			
	

repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by Indemnitee prior to such amendment, alteration or repeal.  To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Constituent Documents and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  Subject to Section 15, the assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
 
13.Liability Insurance and Funding — For the duration of Indemnitee's service as a director or officer of the Company and thereafter for so long as Indemnitee shall be subject to any pending or possible Indemnifiable Claim, to the extent the Company maintains policies of directors' and officers' liability insurance providing coverage for directors and officers of the Company, Indemnitee shall be covered by such policies, in accordance with their terms, to the maximum extent of the coverage available for any other director or officer of the Company.  Upon request of Indemnitee, the Company shall provide Indemnitee with a copy of all directors' and officers' liability insurance applications, binders, policies, declarations, endorsements and other related materials and shall provide Indemnitee with a reasonable opportunity to review and comment on the same.  Without limiting the generality or effect of the two immediately preceding sentences, no discontinuation or significant reduction in the scope or amount of coverage from one policy period to the next shall be effective (a) without the prior approval thereof by a majority vote of the Incumbent Directors, even if less than a quorum, or (b) if at the time that any such discontinuation or significant reduction in the scope or amount of coverage is proposed there are no Incumbent Directors, without the prior written consent of Indemnitee (which consent shall not be unreasonably withheld or delayed).  In all policies of directors' and officers' liability insurance obtained by the Company, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits, subject to the same limitations, as are accorded to the Company's directors and officers most favorably insured by such policy.  The Company may, but shall not be required to, create a trust fund, grant a security interest or use other means, including a letter of credit, to ensure the payment of such amounts as may be necessary to satisfy its obligations to indemnify and advance expenses pursuant to this Agreement.

14.Subrogation — The Company hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement of expenses and/or insurance provided by an Indemnitee-Related Entity (as defined herein). The Company hereby agrees that (i) it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Indemnitee-Related Entity to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary), (ii) it shall be required to advance the full amount of Expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the Certificate of Incorporation or By-laws (or any agreement between the Company and 
			
	

Indemnitee), without regard to any rights Indemnitee may have against the Indemnitee-Related Entity, and (iii) it irrevocably waives, relinquishes and releases the Indemnitee-Related Entity from any and all claims against the Indemnitee-Related Entity for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Indemnitee-Related Entity on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Indemnitee-Related Entity shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Company. The term “Indemnitee-Related Entity” means any company, corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise (other than the Company or the insurer under and pursuant to an insurance policy of the Company) from whom an Indemnitee may be entitled to indemnification or advancement of Expenses with respect to which the Company may also have an indemnification or advancement obligation.

15.No Duplication of Payments — Subject to the provisions of Section 14 of this Agreement, the Company shall not be liable under this Agreement to make any payment to Indemnitee with respect to any Indemnifiable Losses to the extent Indemnitee has otherwise actually received payment (net of Expenses incurred in connection therewith) under any insurance policy, the Constituent Documents or Other Indemnity Provisions or otherwise (including from any entity or enterprise referred to in clause (i) of the definition of "Indemnifiable Claim" in Section 1(f)) with respect to such Indemnifiable Losses otherwise indemnifiable hereunder.

16.Defense of Claims — The Company shall be entitled to participate in the defense of any Indemnifiable Claim or to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee; provided, however, that if Indemnitee believes, after consultation with counsel selected by Indemnitee, that (a) the use of counsel chosen by the Company to represent Indemnitee would present such counsel with an actual or potential conflict, (b) the named parties in any such Indemnifiable Claim (including any impleaded parties) include both the Company and Indemnitee and Indemnitee shall conclude that there may be one or more legal defenses available to him or her that are different from or in addition to those available to the Company or (c) any such representation by such counsel would be precluded under the applicable standards of professional conduct then prevailing, then Indemnitee shall be entitled to retain separate counsel (but not more than one law firm plus, if applicable, local counsel with respect to any particular Indemnifiable Claim) at the Company's expense.  The Company shall not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Indemnifiable Claim effected without the Company's prior written consent.  The Company shall not, without the prior written consent of Indemnitee, effect any settlement of any threatened or pending Indemnifiable Claim that Indemnitee is or could have been a party unless such settlement solely involves the payment of money and includes a complete and unconditional release of Indemnitee from all liability on any claims that are the subject matter of such Indemnifiable Claim.  Neither the Company nor Indemnitee shall unreasonably withhold its consent to any proposed settlement; provided, however, that Indemnitee may withhold consent to (i) any settlement that does not provide a complete and unconditional release of Indemnitee or (ii) any settlement which imposes a monetary payment obligation 
			
	

upon Indemnitee which is not being paid in full by the Company, insurance coverage or any other party for the benefit of Indemnitee.

17.Successors and Binding Agreement —

(a)The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all the business or assets of the Company, by agreement in form and substance satisfactory to Indemnitee and his or her counsel, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place.  This Agreement shall be binding upon and inure to the benefit of the Company and any successor to the Company, including any person acquiring directly or indirectly all or substantially all the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed the "Company" for purposes of this Agreement), but shall not otherwise be assignable or delegatable by the Company.

(b)This Agreement shall inure to the benefit of and be enforceable by Indemnitee's personal or legal representatives, executors, administrators, successors, heirs, distributees, legatees and other successors.

(c)This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 17(a) and 17(b).  Without limiting the generality or effect of the foregoing, Indemnitee's right to receive payments hereunder shall not be assignable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by Indemnitee's will or by the laws of descent and distribution, and in the event of any attempted assignment or transfer contrary to this Section 17(c), the Company shall have no liability to pay any amount so attempted to be assigned or transferred.

18.Duration of Agreement — This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or (b) one (1) year after the final termination of any proceeding then pending in respect of an Indemnifiable Claim and of any proceeding commenced by Indemnitee pursuant to Section 24 of this Agreement relating thereto.  

19.Notices — For all purposes of this Agreement, all communications, including notices, consents, requests or approvals, required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when hand delivered or dispatched by electronic facsimile transmission (with receipt thereof orally confirmed), or five business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid or one business day after having been sent for next-day delivery by a nationally recognized overnight courier service, addressed to the Company (to the attention of the Secretary of the Company) and to Indemnitee at the addresses shown on the signature page hereto, or to such other address as any party may 
			
	

have furnished to the other in writing and in accordance herewith, except that notices of changes of address will be effective only upon receipt.

20.Governing Law — The validity, interpretation, construction and performance of this Agreement shall be governed by and construed in accordance with the substantive laws of the State of Delaware, without giving effect to the principles of conflict of laws of such State.  The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the Chancery Court of the State of Delaware for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be brought only in the Chancery Court of the State of Delaware.

21.Validity — If any provision of this Agreement or the application of any provision hereof to any person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other person or circumstance shall not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal shall be reformed to the extent, and only to the extent, necessary to make it enforceable, valid or legal.  In the event that any court or other adjudicative body shall decline to reform any provision of this Agreement held to be invalid, unenforceable or otherwise illegal as contemplated by the immediately preceding sentence, the parties thereto shall take all such action as may be necessary or appropriate to replace the provision so held to be invalid, unenforceable or otherwise illegal with one or more alternative provisions that effectuate the purpose and intent of the original provisions of this Agreement as fully as possible without being invalid, unenforceable or otherwise illegal.

22.Amendments; Waivers — No provision of this Agreement may be amended, modified, waived or discharged unless such amendment, modification, waiver or discharge is agreed to in writing signed by Indemnitee and the Company.  No waiver by either party hereto at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

23.Complete Agreement — No agreements or representations, oral or otherwise, expressed or implied with respect to the subject matter hereof have been made by either party that are not set forth expressly in this Agreement.

24.Legal Fees and Expenses — It is the intent of the Company that Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to Indemnitee hereunder.  Accordingly, without limiting the generality or effect of any other provision hereof, if it should appear to Indemnitee that the Company has failed to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, the Company irrevocably authorizes Indemnitee from time to time to retain counsel of Indemnitee's choice, at the expense of the Company as hereafter provided, to advise and represent Indemnitee in connection with any such interpretation, 
			
	

enforcement or defense, including the initiation or defense of any litigation or other legal action, whether by or against the Company or any director, officer, stockholder or other person affiliated with the Company, in any jurisdiction.  Notwithstanding any existing or prior attorney-client relationship between the Company and such counsel, the Company irrevocably consents to Indemnitee's entering into an attorney-client relationship with such counsel, and in that connection the Company and Indemnitee agree that a confidential relationship shall exist between Indemnitee and such counsel.  Without respect to whether Indemnitee prevails, in whole or in part, in connection with any of the foregoing, the Company will pay and be solely financially responsible for any and all attorneys' and related fees and expenses incurred by Indemnitee in connection with any of the foregoing.

25.Certain Interpretive Matters — 

(a)No provision of this Agreement shall be interpreted in favor of, or against, either of the parties hereto by reason of the extent to which any such party or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof.

(b)It is the Company's intention and desire that the provisions of this Agreement be construed liberally, subject to their express terms, to maximize the protections to be provided to Indemnitee hereunder.

(c)All references in this Agreement to Sections, paragraphs, clauses and other subdivisions refer to the corresponding Sections, paragraphs, clauses and other subdivisions of this Agreement unless expressly provided otherwise.  Titles appearing at the beginning of any Sections, subsections or other subdivisions of this Agreement are for convenience only, do not constitute any part of such Sections, subsections or other subdivisions and shall be disregarded in construing the language contained in such subdivisions.  The words "this Agreement," "herein," "hereby," "hereunder," and "hereof," and words of similar import, refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited.  The word "or" is not exclusive, and the word "including" (in its various forms) means "including without limitation."  Pronouns in masculine, feminine or neuter genders shall be construed to state and include any other gender, and words, terms and titles (including terms defined herein) in the singular form shall be construed to include the plural and vice versa, unless the context otherwise expressly requires.

26.Counterparts — This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all of which together shall constitute one and the same agreement.

			
	

In witness whereof, Indemnitee has executed, and the Company has caused its duly authorized representative to execute, this Agreement as of the date first above written.

DELL TECHNOLOGIES INC.    INDEMNITEE

Address:     One Dell Way    Address:    
    Round Rock, TX 78682
            
            
    

By:                                                                                                                                                           
Name:  
Title:      

			
	

Active.28150070.8exc-20220324ex42

        POTOMAC ELECTRIC POWER COMPANY  701 Ninth Street, N.W., Washington, D.C.  TO  THE BANK OF NEW YORK MELLON  240 Greenwich Street, New York, NY  as Trustee  Supplemental Indenture  Dated as of March 1, 2022  Supplemental to Mortgage and Deed of Trust  Dated July 1, 1936  FIRST MORTGAGE BONDS, 3.97% SERIES DUE MARCH 24, 2052  FIRST MORTGAGE BONDS, 3.35% SERIES DUE SEPTEMBER 15, 2032     

 

      TABLE OF CONTENTS  Page  PART I. DESCRIPTION OF BONDS OF 3.97% SERIES DUE MARCH 24, 2052. ................... 4  PART II. DESCRIPTION OF BONDS OF 3.35% SERIES DUE SEPTEMBER 15, 2032. ....... 12  PART III. ISSUE OF BONDS...................................................................................................... 20  PART IV. REDEMPTION AND CANCELLATION OF BONDS. ............................................ 21  PART V. ADDITIONAL PARTICULAR COVENANTS OF THE COMPANY. ..................... 22  PART VI. AMENDMENT OF INDENTURE TO PERMIT QUALIFICATION UNDER  THE TRUST INDENTURE ACT. .......................................................................... 22  PART VII. THE TRUSTEE. ........................................................................................................ 22  PART VIII. MISCELLANEOUS PROVISIONS......................................................................... 23      *The Table of Contents is not part of the Supplemental Indenture and should not be considered as such. It  is included herein only for purposes of convenient reference.      

 

  1    SUPPLEMENTAL INDENTURE, dated as of March 1, 2022, made by and between  Potomac Electric Power Company, a corporation organized and existing under the laws of the District of  Columbia and a domestic corporation of the Commonwealth of Virginia (hereinafter sometimes called the  “Company”), party of the first part, and The Bank of New York Mellon, a New York banking corporation  (hereinafter sometimes called the “Trustee”), as trustee under the Mortgage and Deed of Trust dated July  1, 1936, hereinafter mentioned, party of the second part;  WHEREAS, the Company has heretofore executed and delivered its Mortgage and Deed  of Trust, dated July 1, 1936 (hereinafter sometimes referred to as the “Original Indenture”), to The Riggs  National Bank of Washington, D.C., as trustee, to secure an issue of First Mortgage Bonds of the  Company, issuable in series; and  WHEREAS, the Trustee has succeeded The Riggs National Bank of Washington, D.C. as  trustee under the Original Indenture pursuant to Article XIII, Section 3 thereof; and  WHEREAS, pursuant to the terms and provisions of the Original Indenture, indentures  supplemental thereto dated as of July 1, 1936, December 1, 1939, August 1, 1940, August 1, 1942,  January 1, 1948, May 1, 1949, May 1, 1950, March 1, 1952, May 15, 1953, May 16, 1955, June 1, 1956,  December 1, 1958, November 16, 1959, December 1, 1960, February 15, 1963, May 15, 1964, April 1,  1966, May 1, 1967, February 15, 1968, March 15, 1969, February 15, 1970, August 15, 1970, September  15, 1972, April 1, 1973, January 2, 1974, August 15, 1974, August 15, 1974, June 15, 1977, July 1, 1979,  June 16, 1981, June 17, 1981, December 1, 1981, August 1, 1982, October 1, 1982, April 15, 1983,  November 1, 1985, March 1, 1986, November 1, 1986, March 1, 1987, September 16, 1987, May 1, 1989,  August 1, 1989, April 5, 1990, May 21, 1991, May 7, 1992, September 1, 1992, November 1, 1992,  March 1, 1993, March 2, 1993, July 1, 1993, August 20, 1993, September 29, 1993, September 30, 1993,  October 1, 1993, February 10, 1994, February 11, 1994, March 10, 1995, September 6, 1995, September  7, 1995, October 2, 1997, March 17, 1999, November 17, 2003, March 16, 2004, May 24, 2005, April 1,  2006, November 13, 2007, March 24, 2008, December 3, 2008, March 28, 2012, March 11, 2013,  November 14, 2013, March 11, 2014, March 9, 2015, May 15, 2017, June 1, 2018, May 2, 2019, and  February 12, 2020, have been heretofore entered into between the Company and the Trustee to provide,  respectively, for the creation of the first through the eightieth series of Bonds thereunder and, in the case  of the supplemental indentures dated January 1, 1948, March 1, 1952, May 15, 1953, May 16, 1955, June  1, 1956, September 15, 1972, July 1, 1979, June 17, 1981, November 1, 1985, September 16, 1987, May  1, 1989, May 21, 1991, May 7, 1992, July 1, 1993, October 2, 1997, December 19, 2014, December 5,  2017 and one of the supplemental indentures dated August 15, 1974, to convey additional property; and  WHEREAS, $20,000,000 principal amount of Bonds of the 3-1/4% Series due 1966 (the  first series), $5,000,000 principal amount of Bonds of the 3-1/4% Series due 1974 (the second series),  $10,000,000 principal amount of Bonds of the 3-1/4% Series due 1975 (the third series), $5,000,000  principal amount of Bonds of the 3-1/4% Series due 1977 (the fourth series), $15,000,000 principal  amount of Bonds of the 3% Series due 1983 (the fifth series), $10,000,000 principal amount of Bonds of  the 2-7/8% Series due 1984 (the sixth series), $30,000,000 principal amount of Bonds of the 2-3/4%  Series due 1985 (the seventh series), $15,000,000 principal amount of Bonds of the 3-1/4% Series due  1987 (the eighth series), $10,000,000 principal amount of Bonds of the 3-7/8% Series due 1988 (the ninth  series), $10,000,000 principal amount of Bonds of the 3-3/8% Series due 1990 (the tenth series),  

 

  2    $10,000,000 principal amount of Bonds of the 3-5/8% Series due 1991 (the eleventh series), $25,000,000  principal amount of Bonds of the 4-5/8% Series due 1993 (the twelfth series), $15,000,000 principal  amount of Bonds of the 5-1/4% Series due 1994 (the thirteenth series), $40,000,000 principal amount of  Bonds of the 5% Series due 1995 (the fourteenth series), $50,000,000 principal amount of Bonds of the  4¬3/8% Series due 1998 (the fifteenth series), $45,000,000 principal amount of Bonds of the 4-1/2%  Series due 1999 (the sixteenth series), $15,000,000 principal amount of Bonds of the 5-1/8% Series due  2001 (the seventeenth series), $35,000,000 principal amount of Bonds of the 5-7/8% Series due 2002 (the  eighteenth series), $40,000,000 principal amount of Bonds of the 6-5/8% Series due 2003 (the nineteenth  series), $45,000,000 principal amount of Bonds of the 7-3/4% Series due 2004 (the twentieth series),  $35,000,000 principal amount of Bonds of the 8.85% Series due 2005 (the twenty-first series),  $70,000,000 principal amount of Bonds of the 9-1/2% Series due August 15, 2005 (the twenty-second  series), $50,000,000 principal amount of Bonds of the 7-3/4% Series due 2007 (the twenty-third series),  $25,000,000 principal amount of Bonds of the 5-5/8% Series due 1997 (the twenty-fourth series),  $100,000,000 principal amount of Bonds of the 8-3/8% Series due 2009 (the twenty-fifth series),  $50,000,000 principal amount of Bonds of the 10-1/4% Series due 1981 (the twenty-sixth series),  $50,000,000 principal amount of Bonds of the 10-3/4% Series due 2004 (the twenty-seventh series),  $38,300,000 principal amount of Bonds of the 6-1/8% Series due 2007 (the twenty-eighth series),  $15,000,000 principal amount of Bonds of the 6-1/2% Series due 2004 (the twenty-ninth series),  $20,000,000 principal amount of Bonds of the 6-1/2% Series due 2007 (the thirtieth series), $7,500,000  principal amount of Bonds of the 6-5/8% Series due 2009 (the thirty-first series), $30,000,000 principal  amount of Bonds of the Floating Rate Series due 2010 (the thirty-second series), $50,000,000 principal  amount of Bonds of the 14-1/2% Series due 1991 (the thirty-third series), $50,000,000 principal amount  of Bonds of the Adjustable Rate Series due 2001 (the thirty-fourth series), $60,000,000 principal amount  of Bonds of the 14-1/4% Series due 1992 (the thirty-fifth series), $50,000,000 principal amount of Bonds  of the 11-7/8% Series due 1989 (the thirty-sixth series), $37,000,000 principal amount of Bonds of the 8- 3/4% Series due 2010 (the thirty-seventh series), $75,000,000 principal amount of Bonds of the 11-1/4%  Series due 2015 (the thirty-eighth series), $75,000,000 principal amount of Bonds of the 9-1/4% Series  due 2016 (the thirty-ninth series), $75,000,000 principal amount of Bonds of the 8-3/4% Series due 2016  (the fortieth series), $75,000,000 principal amount of Bonds of the 8-1/4% Series due 2017 (the forty-first  series), $75,000,000 principal amount of Bonds of the 9% Series due 1990 (the forty-second series),  $75,000,000 principal amount of Bonds of the 9-3/4% Series due 2019 (the forty-third series),  $75,000,000 principal amount of Bonds of the 8-5/8% Series due 2019 (the forty-fourth series),  $100,000,000 principal amount of Bonds of the 9% Series due 2000 (the forty-fifth series), $100,000,000  principal amount of Bonds of the 9% Series due 2021 (the forty-sixth series), $75,000,000 principal  amount of Bonds of the 8-1/2% Series due 2027 (the forty-seventh series); $30,000,000 principal amount  of Bonds of the 6% Series due 2022 (the forty-eighth series); $37,000,000 principal amount of Bonds of  the 6-3/8% Series due 2023 (the forty-ninth series); $78,000,000 principal amount of Bonds of the 6-1/2%  Series due 2008 (the fiftieth series); $40,000,000 principal amount of Bonds of the 7-1/2% Series due  2028 (the fifty-first series); $100,000,000 principal amount of Bonds of the 7-1/4% Series due 2023 (the  fifty-second series); $100,000,000 principal amount of Bonds of the 6-7/8% Series due 2023 (the fifty- third series); $50,000,000 principal amount of Bonds of the 5-5/8% Series due 2003 (the fifty-fourth  series); $50,000,000 principal amount of Bonds of the 5-7/8% Series due 2008 (the fifty-fifth series);  $75,000,000 principal amount of Bonds of the 6-7/8% Series due 2024 (the fifty-sixth series);  $42,500,000 principal amount of Bonds of the 5-3/8% Series due 2024 (the fifty-seventh series);  

 

  3    $38,300,000 principal amount of Bonds of the 5-3/8% Series due 2024 (the fifty-eighth series);  $16,000,000 principal amount of Bonds of the 5-3/4% Series due 2010 (the fifty-ninth series);  $100,000,000 principal amount of Bonds of the 6-1/2% series due 2005 (the sixtieth series); $75,000,000  principal amount of Bonds of the 7-3/8% Series due 2025 (the sixty-first series); $175,000,000 principal  amount of Bonds of the 6-1/4% Series due 2007 (the sixty-second series); $270,000,000 principal amount  of Bonds of the 6% Series due 2004 (the sixty-third series); $200,000,000 principal amount of Bonds of  the 4.95% Series due 2013 (the sixty-fourth series); and $175,000,000 principal amount of Bonds of the  4.65% Series due 2014 (the sixty-fifth series) have been heretofore redeemed and retired and there are  now issued and outstanding under the Original Indenture and under the supplemental indentures referred  to above: $100,000,000 principal amount of Bonds of the 5.75% Series due 2034 (the sixty-sixth series);  $175,000,000 principal amount of Bonds of the 5.40% Series due 2035 (the sixty-seventh series);  $109,500,000 principal amount of Bonds of the Medco Collateral Series due 2022 (the sixty-eighth  series); $250,000,000 principal amount of Bonds of the 6.50% Series due 2037 (the sixty-ninth series);  $250,000,000 principal amount of Bonds of the 6.50% Series 2 due 2037 (the seventieth series);  $250,000,000 principal amount of Bonds of the 7.90% Series due 2038 (the seventy-first series);  $200,000,000 principal amount of Bonds of the 3.05% Series due 2022 (the seventy-second series);  $650,000,000 principal amount of Bonds of the 4.15% Series due 2043 (the seventy-third series);  $150,000,000 principal amount of Bonds of the 4.95% Series due 2043 (the seventy-fourth series);  $400,000,000 principal amount of Bonds of the 3.60% Series due 2024 (the seventy-fifth series);  $100,000,000 principal amount of Bonds of the 4.27 % Series due 2048 (the seventy-sixth  series);  $100,000,000 principal amount of Bonds of the 4.31% Series due 2048 (the seventy-seventh series);  $150,000,000 principal amount of Bonds of the 3.45% Series due 2029 (the seventy-eighth series);  $150,000,000 principal amount of Bonds of the 2.53% Series due 2030 (the seventy-ninth series);  $150,000,000 principal amount of Bonds of the 3.28% Series due 2050 (the eightieth series);  $150,000,000 principal amount of Bonds of the 2.32% Series due 2031 (the eighty-first series); and  $125,000,000 principal amount of Bonds of the 3.29% Series due 2051 (the eighty-second series)  represent the series of Bonds that have been heretofore created and issued; and  WHEREAS, for the purpose of conforming the Original Indenture to the standards  prescribed by the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), or otherwise  modifying certain of the provisions of the Original Indenture, indentures supplemental thereto dated  December 10, 1939, August 10, 1942, October 15, 1942, April 1, 1966, June 16, 1981, June 17, 1981,  December 1, 1981, August 1, 1982, October 1, 1982, April 15, 1983, November 1, 1985, March 1, 1986,  November 1, 1986, March 1, 1987, September 16, 1987, May 1, 1989, August 1, 1989, April 5, 1990,  May 21, 1991, May 7, 1992, September 1, 1992, November 1, 1992, March 1, 1993, March 2, 1993, July  1, 1993, August 20, 1993, September 29, 1993, September 30, 1993, October 1, 1993, February 10, 1994,  February 11, 1994, March 10, 1995, September 6, 1995, September 7, 1995, October 2, 1997, March 17,  1999, November 17, 2003 and December 5, 2017 have been heretofore entered into between the  Company and the Trustee, and for the purpose of conveying additional property, indentures supplemental  thereto dated July 15, 1942, October 15, 1947, December 31, 1948, December 31, 1949, February 15,  1951, February 16, 1953, March 15, 1954, March 15, 1955, March 15, 1956, April 1, 1957, May 1, 1958,  May 1, 1959, May 2, 1960, April 3, 1961, May 1, 1962, May 1, 1963, April 23, 1964, May 3, 1965, June  1, 1966, April 28, 1967, July 3, 1967, May 1, 1968, June 16, 1969, May 15, 1970, September 1, 1971,  June 17, 1981, November 1, 1985, September 16, 1987, May 1, 1989, May 21, 1991, May 7, 1992, July 1,  

 

  4    1993, October 2, 1997, December 19, 2014 and December 5, 2017 have been heretofore entered into  between the Company and the Trustee, and for the purpose of better securing and protecting the Bonds  then or thereafter issued and confirming the lien of the Original Indenture, an indenture dated October 15,  1942 supplemental thereto has been heretofore entered into between the Company and the Trustee; the  Original Indenture as heretofore amended and supplemented being hereinafter referred to as the “Original  Indenture as amended”; and  WHEREAS, the Company is entitled to have authenticated and delivered additional  Bonds on the basis of property additions, upon compliance with the provisions of Section 4 of Article III  of the Original Indenture as amended; and  WHEREAS, the Company has determined to issue (i) an eighty-third series of Bonds  under the Original Indenture as amended, to be known as First Mortgage Bonds, 3.97% Series due March  24, 2052 (hereinafter called “Bonds of 3.97% Series”) and (ii) an eighty-fourth series of Bonds under the  Original Indenture as amended, to be known as First Mortgage Bonds, 3.35% Series due September 15,  2032 (hereinafter called “Bonds of 3.35% Series”); and  WHEREAS, the Company, in the exercise of the powers and authority conferred upon  and reserved to it under the provisions of the Original Indenture as amended and pursuant to appropriate  resolutions of its Board of Directors, has duly resolved and determined to make, execute and deliver to  the Trustee a supplemental indenture in the form hereof for the purposes herein provided; and  WHEREAS, all conditions and requirements necessary to make this Supplemental  Indenture a valid, binding and legal instrument have been done, performed and fulfilled, and the  execution and delivery hereof have been in all respects duly authorized;    NOW, THEREFORE, THIS INDENTURE WITNESSETH:  That Potomac Electric Power Company, in consideration of the premises and of One  Dollar to it duly paid by the Trustee at or before the delivery of these presents, and for other valuable  considerations, the receipt whereof is hereby acknowledged, hereby covenants, declares and agrees with  the Trustee and its successors in the trust under the Original Indenture as amended for the benefit of those  who hold the Bonds and coupons, or any of them, issued or to be issued hereunder or under the Original  Indenture as amended, as follows:  PART I.  DESCRIPTION OF BONDS OF 3.97% SERIES DUE MARCH 24, 2052.  SECTION 1. The Bonds of 3.97% Series shall, subject to the provisions of Section 1 of  Article II of the Original Indenture as amended, be designated as “First Mortgage Bonds 3.97% Series  due March 24, 2052” of the Company. The Bonds of 3.97% Series shall be executed, authenticated and  delivered in accordance with the provisions of, and shall in all respects be subject to, all of the terms,  conditions and covenants of the Original Indenture as amended, except in so far as the terms and  provisions of the Original Indenture as amended are amended or modified by this Supplemental  Indenture.  

 

  5    The Bonds of 3.97% Series shall mature March 24, 2052, and shall bear interest from the  date of initial issuance at the rate of three and ninety-seven hundredths percent (3.97%) per annum,  payable semiannually, commencing September 24, 2022, on the twenty-fourth day of September and the  twenty-fourth day of March in each year (each such September 24 and March 24 being hereinafter called  an “interest payment date”). The Bonds of 3.97% Series shall be payable as to principal and interest in  lawful money of the United States of America, and shall be payable (as well the interest as the principal  thereof) at the agency of the Company in the Borough of Manhattan, The City of New York.    Anything in the Original Indenture as amended, this Supplemental Indenture, or the  Bonds of 3.97% Series notwithstanding, (x) except as set forth in clause (y), any payment of interest on  any Bond of 3.97% Series that is due on an interest payment date that is not a Business Day, as defined  below, 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; and (y) any payment of  principal of or Make-Whole Amount, as defined in the Bond of 3.97% Series, on any Bonds of 3.97%  Series (including principal due on the maturity date of such Bond of 3.97% Series) that is due on a date  that is not a Business Day 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.   For purposes of the foregoing, “Business Day” shall mean any day other than a Saturday, a Sunday or a  day on which commercial banks in New York City are required or authorized to be closed.  The interest so payable on any interest payment date shall be paid to the persons in whose  names the Bonds of 3.97% Series are registered at the close of business on the first calendar day of the  month in which the interest payment date occurs; provided, that interest payable on the maturity date shall  be paid to the person to whom principal shall be payable; and provided further that if the Company shall  default in the payment of any interest due on such interest payment date, such defaulted interest shall be  paid to the persons in whose names the Bonds of 3.97% Series are registered on the date of payment of  such defaulted interest, or in accordance with the regulations of any securities exchange on which the  Bonds of 3.97% Series are listed. Interest shall be computed on the basis of a 360-day year comprised of  twelve 30-day months.  Except as provided hereinafter, every Bond of 3.97% Series 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 delivery of the initial Bonds  of 3.97% Series, whichever is later.  Notwithstanding Section 6 of Article II of the Original Indenture as  amended, any Bond of 3.97% Series 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 or the date of  delivery of the initial Bonds of 3.97% Series, whichever is later.  SECTION 2. The Bonds of 3.97% Series, and the Trustee’s certificate to be endorsed on  the Bonds of 3.97% Series, shall be substantially in the following forms, respectively:  

 

  6    [FORM OF FACE OF BOND OF 3.97% SERIES]  [THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED, OR THE SECURITIES OR “BLUE SKY” LAWS OF ANY OTHER JURISDICTION,  AND MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH SUCH REGISTRATION  REQUIREMENTS OR UNDER AN EXEMPTION THEREFROM.]    POTOMAC ELECTRIC POWER COMPANY  (A District of Columbia and Virginia corporation)  First Mortgage Bond, 3.97% Series due March 24, 2052  No. [______] $[_________]  PPN No. [______]  POTOMAC ELECTRIC POWER COMPANY, a corporation organized and existing  under the laws of the District of Columbia and a domestic corporation of the Commonwealth of Virginia  (hereinafter called the “Company”, which term shall include any successor corporation as defined in the  Amended Indenture hereinafter referred to), for value received, hereby promises to pay to [________] or  registered assigns, the sum of [__________] Dollars ($[_______]), on the twenty-fourth day of March,  2052, in lawful money of the United States of America, and to pay interest thereon in like money from the  later of the date of delivery of the initial Bonds of 3.97% Series or the March 24 or September 24 next  preceding the date of this Bond, or if the Company shall default in the payment of interest due on such  interest payment date, then from the next preceding interest payment date or the date of delivery of the  initial Bonds of 3.97% Series, whichever is later, at the rate of three and ninety-seven hundredths percent  (3.97%) per annum, payable semiannually, commencing September 24, 2022, on the twenty-fourth day of  March or September in each year until maturity, or, if the Company shall default in the payment of the  principal hereof, until the Company’s obligation with respect to the payment of such principal shall be  discharged as provided in the Amended Indenture. The interest so payable on any March 24 or September  24 will, subject to certain exceptions provided in the indenture dated as of March 1, 2022 supplemental to  the Amended Indenture, be paid to the person in whose name this Bond is registered at the close of  business on the first calendar day of the month in which the interest payment date occurs. Both principal  of, and interest on, this Bond are payable at the agency of the Company in the Borough of Manhattan, The  City of New York.  Reference is made to the further provisions of this Bond set forth on the reverse hereof,  and such further provisions shall for all purposes have the same effect as though fully set forth at this  place.  This Bond shall not be entitled to any benefit under the Amended Indenture or any  indenture supplemental thereto, or become valid or obligatory for any purpose, until The Bank of New  York Mellon, the Trustee under the Amended Indenture, or a successor trustee thereto under the  Amended Indenture, shall have signed the form of certificate endorsed hereon.  

 

  7    IN WITNESS WHEREOF, Potomac Electric Power Company has caused this Bond to be  signed in its name by the signature (whether manual or electronic) of one of its Authorized Officers, and  attested by the manual or electronic signature of its Secretary or an Assistant Secretary.  Dated:   POTOMAC ELECTRIC POWER COMPANY  By    Ryan Brown, Assistant Treasurer  Attest:     Assistant Secretary    [FORM OF TRUSTEE’S CERTIFICATE]  This Bond is one of the Bonds, of the series designated therein, described in the within- mentioned Amended Indenture and the Supplemental Indenture dated as of March 1, 2022.  Dated: The Bank of New York Mellon, as Trustee  By    Authorized Signatory  [TEXT APPEARING ON REVERSE SIDE OF BOND OF 3.97% SERIES]  This Bond is one of a duly authorized issue of Bonds of the Company (hereinafter called  the “Bonds”) in unlimited aggregate principal amount, of the series hereinafter specified, all issued and to  be issued under and equally secured (except in so far as any purchase or sinking fund or analogous  provisions for any particular series of Bonds, established by any indenture supplemental to the Amended  Indenture hereinafter mentioned, may afford additional security for such Bonds) by a mortgage and deed  of trust, dated July 1, 1936, executed by the Company to The Bank of New York Mellon as successor to  The Riggs National Bank of Washington, D.C. (herein called the “Trustee”), as trustee, as amended by  indentures supplemental thereto dated December 10, 1939, August 10, 1942, October 15, 1942, April 1,  1966, June 16, 1981, June 17, 1981, December 1, 1981, August 1, 1982, October 1, 1982, April 15, 1983,  November 1, 1985, March 1, 1986, November 1, 1986, March 1, 1987, September 16, 1987, May 1, 1989,  August 1, 1989, April 5, 1990, May 21, 1991, May 7, 1992, September 1, 1992, November 1, 1992,  March 1, 1993, March 2, 1993, July 1, 1993, August 20, 1993, September 29, 1993, September 30, 1993,  October 1, 1993, February 10, 1994, February 11, 1994, March 10, 1995, September 6, 1995, September  7, 1995, October 2, 1997, March 17, 1999, November 17, 2003, March 16, 2004, May 24, 2005, April 1,  2006, November 13, 2007, March 24, 2008, December 3, 2008, March 28, 2012, March 11, 2013,  November 14, 2013, March 11, 2014, March 9, 2015, May 15, 2017, June 1, 2018, May 2, 2019,  February 12, 2020, February 15, 2021, and March 1, 2022 (said mortgage and deed of trust, as so  

 

  8    amended, being herein called the “Amended Indenture”) and all indentures supplemental thereto, to  which Amended Indenture and supplemental indentures reference is hereby made for a description of the  properties mortgaged and pledged, the nature and extent of the security, the rights of the owners of the  Bonds and of the Trustee in respect thereto, and the terms and conditions upon which the Bonds are, and  are to be, secured. To the extent permitted by, and as provided in, the Amended Indenture, modifications  or alterations of the Amended Indenture, or of any indenture supplemental thereto, and of the rights and  obligations of the Company and of the holders of the Bonds may be made with the consent of the  Company by an affirmative vote of not less than 60% in amount of the Bonds entitled to vote then  outstanding, at a meeting of Bondholders called and held as provided in the Amended Indenture, and by  an affirmative vote of not less than 60% in amount of the Bonds of any series entitled to vote then  outstanding and affected by such modification or alteration, in case one or more but less than all of the  series of Bonds then outstanding under the Amended Indenture are so affected; provided, however, that  no such modification or alteration shall be made which will affect the terms of payment of the principal  of, or interest on, this Bond, which are unconditional, or which reduces the percentage of Bonds the  affirmative vote of which is required for the making of such modifications or alterations.  This Bond is one of a series designated as the “First Mortgage Bonds, 3.97% Series due  March 24, 2052” (herein called the “Bonds of 3.97% Series”) of the Company, issued under and secured  by the Amended Indenture and all indentures supplemental thereto and described in the supplemental  indenture, dated as of March 1, 2022 between the Company and the Trustee, supplemental to the  Amended Indenture.  The Bonds of 3.97%  Series shall be redeemable at the option of the Company prior to  the express date of the maturity hereof, in whole or in part, at any time; provided that the Company may  not redeem less than 5% of the aggregate principal amount of the Bonds of 3.97% Series in the case of  any partial redemption. The Company shall give notice of its intent to redeem such Bonds to the holders  of such Bonds of 3.97% Series at least 30 days but no more than 60 days prior to the date fixed for such  redemption (the “Redemption Date”). If the Company redeems all or any part of the Bonds of 3.97%  Series pursuant to the provisions of this paragraph, it shall pay an amount equal to 100% of the principal  amount of the Bonds of 3.97% Series to be redeemed and a Make-Whole Amount, which shall be  calculated as follows:  “Make-Whole Amount” means, as determined by the Company, with respect to any Bond of  3.97% Series, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled  Payments with respect to the Called Principal of such Bond of 3.97% Series over the amount of such  Called Principal of such Bond of 3.97% Series, provided, that the Make-Whole Amount may in no event  be less than zero.  For the purposes of determining the Make-Whole Amount, the following terms have  the following meanings and each of which will be determined by the Company:  “Business Day” means any day other than a Saturday, a Sunday or a day on which  commercial banks in New York City are required or authorized to be closed.  “Called Principal” means, with respect to any Bond of 3.97% Series, the principal of such  Bond of 3.97% Series that is to be redeemed or has become or is declared to be immediately  due and payable pursuant to the Amended Indenture.  

 

  9    “Discounted Value” means, with respect to the Called Principal of any Bond of 3.97% Series,  the amount obtained by discounting all Remaining Scheduled Payments with respect to such  Called Principal from their respective scheduled due dates to the Settlement Date with respect  to such Called Principal, in accordance with accepted financial practice and at a discount  factor (applied on the same periodic basis as that on which interest on the Bonds of 3.97%  Series is payable) equal to the Reinvestment Yield with respect to such Called Principal.  “Reinvestment Yield” means, with respect to the Called Principal of any Bond of 3.97%  Series, the sum of (a) 0.50% plus (b) the yield to maturity implied by the “Ask Yield(s)”  reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the  Settlement Date with respect to such Called Principal, on the display designated as “Page  PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for  the most recently issued actively traded on-the-run U.S. Treasury securities (“Reported”)  having a maturity equal to the Remaining Average Life of such Called Principal as of such  Settlement Date.  If there are no such U.S. Treasury securities Reported having a maturity  equal to such Remaining Average Life, then such implied yield to maturity will be  determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in  accordance with accepted financial practice and (ii) interpolating linearly between the “Ask  Yields” Reported for the applicable most recently issued actively traded on-the-run U.S.  Treasury securities with the maturities (1) closest to and greater than such Remaining  Average Life and (2) closest to and less than such Remaining Average Life.  The  Reinvestment Yield shall be rounded to the number of decimal places as appears in the  interest rate of the applicable Bond of 3.97% Series.  If such yields are not Reported or the yields Reported as of such time are not ascertainable  (including by way of interpolation), then “Reinvestment Yield” means, with respect to the  Called Principal of any Bond of 3.97% Series, the sum of (x) 0.50% plus (y) the yield to  maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for  which such yields have been so reported as of the second Business Day preceding the  Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release  H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity  having a term equal to the Remaining Average Life of such Called Principal as of such  Settlement Date.  If there is no such U.S. Treasury constant maturity having a term equal to  such Remaining Average Life, such implied yield to maturity will be determined by  interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the  term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury  constant maturity so reported with the term closest to and less than such Remaining Average  Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in  the interest rate of the applicable Bond of 3.97% Series.  “Remaining Average Life” means, with respect to any Called Principal, the number of years  obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by  multiplying (a) the principal component of each Remaining Scheduled Payment with respect  to such Called Principal by (b) the number of years, computed on the basis of a 360-day year  comprised of twelve 30-day months and calculated to two decimal places, that will elapse  between the Settlement Date with respect to such Called Principal and the scheduled due date  of such Remaining Scheduled Payment.  “Remaining Scheduled Payments” means, with respect to the Called Principal of any Bond of  3.97% Series, all payments of such Called Principal and interest thereon that would be due  after the Settlement Date with respect to such Called Principal if no payment of such Called  

 

  10    Principal were made prior to its scheduled due date, provided that if such Settlement Date is  not a date on which interest payments are due to be made under the Bond of 3.97% Series,  then the amount of the next succeeding scheduled interest payment will be reduced by the  amount of interest accrued to such Settlement Date and required to be paid on such  Settlement Date.  “Settlement Date” means, with respect to the Called Principal of any Bond of 3.97% Series,  the date on which such Called Principal is to be prepaid or has become or is declared to be  immediately due and payable pursuant to the Amended Indenture, as the context requires.  The Company’s notice of redemption to the holders of Bonds of 3.97% Series shall specify  such date (which shall be a Business Day), the aggregate principal amount of the Bonds of  3.97% Series to be prepaid on such date, the principal amount of each Bond of 3.97% Series  held by such holder to be prepaid (determined in accordance with the next paragraph hereof),  and the interest to be paid on the prepayment date with respect to such principal amount  being prepaid, and shall be accompanied by a certificate of the chief financial officer,  principal accounting officer, treasurer, assistant treasurer or comptroller of the Company  (each, a “Senior Financial Officer”) as to the estimated Make-Whole Amount due in  connection with such prepayment (calculated as if the date of such notice were the date of the  prepayment), setting forth the details of such computation.  Two Business Days prior to such  prepayment, the Company shall deliver to the Trustee and each holder of Bonds of 3.97%  Series a certificate of a Senior Financial Officer specifying the calculation of such Make- Whole Amount as of the specified prepayment date.  Provided that no default or event of default has occurred and is continuing, within one  hundred and eighty days (180) days of the stated maturity date of the Bonds of 3.97% Series (the period  from such date to the stated maturity of the Bonds of 3.97% Series being referred to herein as the  “Prepayment Period”), the Company may, at its option, upon prior written notice as provided below,  prepay all the Bonds of 3.97% Series at 100% of the principal amount so prepaid, together with interest  on such principal amount accrued to the date of prepayment and without any Make-Whole Amount.  In the case of each partial prepayment of the Bonds of 3.97% Series, the principal amount  of the Bonds of 3.97% Series to be prepaid shall be allocated among all of the Bonds of 3.97% Series at  the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts  thereof not theretofore called for prepayment.  In the case of each prepayment of Bonds of 3.97% Series, the principal amount of each  Bond of 3.97% Series to be prepaid shall mature and become due and payable on the date fixed for such  prepayment, together with interest on such principal amount accrued to such date and the applicable  Make-Whole Amount, if any.  From and after such date, unless the Company shall fail to pay such  principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as  aforesaid, interest on such principal amount shall cease to accrue.  Any Bond of 3.97% Series paid or  prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Bond  of 3.97% Series shall be issued in lieu of any prepaid principal amount of any Bond of 3.97% Series.  The Company shall deliver to the Trustee before any Redemption Date for the Bonds of  3.97% Series its calculation of the amount applicable to such redemption. The Trustee shall be under no  duty to inquire into, may presume the correctness of, and shall be fully protected in acting upon, the  Company’s calculation of any redemption price of the Bonds of 3.97% Series.  

 

  11    If at the time notice of redemption is given the redemption moneys are not on deposit  with the Trustee, then the redemption shall be subject to the receipt of such moneys on or before the  Redemption Date, and such notice shall be of no effect unless such moneys are received.  In case an event of default, as defined in the Amended Indenture, shall occur, the  principal of all the Bonds at any such time outstanding under the Amended Indenture may be declared or  may become due and payable, upon the conditions and in the manner and with the effect provided in the  Amended Indenture. The Amended Indenture provides that such declaration may in certain events be  waived by the holders of a majority in principal amount of the Bonds entitled to vote then outstanding.  This Bond is transferable by the registered owner hereof, in person or by duly authorized  attorney, on the books of the Company to be kept for that purpose at the agency of the Company in the  Borough of Manhattan, The City of New York, upon surrender and cancellation of this Bond and on  presentation of a duly executed written instrument of transfer, and thereupon a new Bond or Bonds of the  same series, of the same aggregate principal amount and in authorized denominations will be issued to the  transferee or transferees in exchange therefor; and this Bond, with or without others of the same series,  may in like manner be exchanged for one or more new Bonds of the same series of other authorized  denominations but of the same aggregate principal amount; all subject to the terms and conditions set  forth in the Amended Indenture.  No recourse shall be had for the payment of the principal of, or the interest on, this Bond,  or for any claim based hereon or otherwise in respect hereof or of the Amended Indenture or any  indenture supplemental thereto, against any incorporator, or against any stockholder, director or officer,  past, present or future, of the Company or of any predecessor or successor corporation, either directly or  through the Company or any such predecessor or successor corporation, whether for amounts unpaid on  stock subscriptions or by virtue of any constitution, statute or rule of law, or by the enforcement of any  assessment or penalty or otherwise, all such liability, whether at common law, in equity, by any  constitution, statute or otherwise, of incorporators, stockholders, directors or officers being released by  every owner hereof by the acceptance of this Bond and as part of the consideration for the issue hereof,  and being likewise released by the terms of the Amended Indenture.  [END OF FORM]  SECTION 3. The Bonds of 3.97% Series shall be registered Bonds without coupons in  denominations of any multiple of $1,000, numbered consecutively upwards from R-1.   SECTION 4. The Bonds of 3.97% Series shall bear the following legend:  “THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED, OR THE SECURITIES OR “BLUE SKY” LAWS OF ANY OTHER JURISDICTION,  AND MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH SUCH REGISTRATION  REQUIREMENTS OR UNDER AN EXEMPTION THEREFROM.”  SECTION 5. In addition to the events of default described in Article IX of the Indenture,  an event of default with respect to the Bonds of 3.97% Series will include the additional events of default  described in Section 11 of the Bond Purchase Agreement  among the Company and the initial holders of  

 

  12    the Bonds of 3.97% Series specified on Schedule A to the Bond Purchase Agreement.  The Trustee shall  not be deemed to have knowledge of any event of default under the Bond Purchase Agreement unless a  responsible officer of the Trustee shall have received written notice thereof from the Company or by the  holders of the Bonds of 3.97% Series then outstanding.  SECTION 6. In order to enable the Trustee to comply with its obligations under  applicable tax laws, rules and regulations in effect from time to time (“Applicable Law”), the Company  shall provide to the Trustee, following written request from the Trustee, such information concerning the  holders of the Bonds of 3.97% Series as the Trustee may reasonably request in order to determine whether  the Trustee has any tax-related obligations under Applicable Law with respect to the payments made to  holders of the Bonds of 3.97% Series, but only to the extent (a) such information is in the Company’s  possession, (b) such information is not subject to any confidentiality or similar agreement or undertaking  or otherwise deemed by the Company to be confidential and (c) providing such information to the Trustee  does not, in the judgment of the Company, breach or violate or constitute a default under any applicable  laws, rules or regulations or any instrument or agreement to which the Company of any of its affiliates is  a party or may be bound. The Company, the Trustee or any paying agent for the Bonds of 3.97% Series  shall be permitted to make any withholding or deduction from the amount of principal and interest  payable to holders of the Bonds of 3.97% Series to the extent required under Applicable Law. Each  holder of the Bonds of 3.97% Series by accepting such bond shall be deemed to have agreed that the  Company may provide to the Trustee such information concerning such holder as the Trustee may request  in order to determine whether the Trustee has any tax-related obligations under Applicable Law with  respect to the payments made to such holder under this Supplemental Indenture; and such agreement by  each holder is part of the consideration for the issuance of the Bonds of 3.97% Series.  SECTION 7. Until Bonds of 3.97% Series in definitive form are ready for delivery, the  Company may execute, and upon its request in writing the Trustee shall authenticate and deliver, in lieu  thereof, Bonds for such series in temporary form, as provided in Section 9 of Article II of the Original  Indenture as amended.  PART II.  DESCRIPTION OF BONDS OF 3.35% SERIES DUE SEPTEMBER 15, 2032.  SECTION 1. The Bonds of 3.35% Series shall, subject to the provisions of Section 1 of  Article II of the Original Indenture as amended, be designated as “First Mortgage Bonds, 3.35% Series  due September 15, 2032” of the Company. The Bonds of 3.35% Series shall be executed, authenticated  and delivered in accordance with the provisions of, and shall in all respects be subject to, all of the terms,  conditions and covenants of the Original Indenture as amended, except in so far as the terms and  provisions of the Original Indenture as amended are amended or modified by this Supplemental  Indenture.  The Bonds of 3.35% Series shall mature September 15, 2032, and shall bear interest from  the date of initial issuance at the rate of three and thirty-five hundredths percent (3.35%) per annum,  payable semiannually, commencing March 15, 2023, on the fifteenth day of March and the fifteenth day  of September in each year (each such March 15 and September 15 being hereinafter called an “interest  payment date”). The Bonds of 3.35% Series shall be payable as to principal and interest in lawful money  of the United States of America, and shall be payable (as well the interest as the principal thereof) at the  agency of the Company in the Borough of Manhattan, The City of New York.  Anything in the Original Indenture as amended, this Supplemental Indenture, or the  Bonds of 3.35% Series notwithstanding, (x) except as set forth in clause (y), any payment of interest on  

 

  13    any Bond of 3.35% Series that is due on an interest payment date that is not a Business Day, as defined  below, 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; and (y) any payment of  principal of or Make-Whole Amount, as defined in the Bond of 3.35% Series, on any Bonds of 3.35%  Series (including principal due on the maturity date of such Bond of 3.35% Series) that is due on a date  that is not a Business Day 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.   For purposes of the foregoing, “Business Day” shall mean any day other than a Saturday, a Sunday or a  day on which commercial banks in New York City are required or authorized to be closed.  The interest so payable on any interest payment date shall be paid to the persons in whose  names the Bonds of 3.35% Series are registered at the close of business on the first calendar day of the  month in which the interest payment date occurs; provided, that interest payable on the maturity date shall  be paid to the person to whom principal shall be payable; and provided further that if the Company shall  default in the payment of any interest due on such interest payment date, such defaulted interest shall be  paid to the persons in whose names the Bonds of 3.35% Series are registered on the date of payment of  such defaulted interest, or in accordance with the regulations of any securities exchange on which the  Bonds of 3.35% Series are listed. Interest shall be computed on the basis of a 360-day year comprised of  twelve 30-day months.  Except as provided hereinafter, every Bond of 3.35% Series 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 delivery of the initial Bonds  of 3.35% Series, whichever is later. Notwithstanding Section 6 of Article II of the Original Indenture as  amended, any Bond of 3.35% Series 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 or the date of  delivery of the initial Bonds of 3.35% Series, whichever is later.  SECTION 2. The Bonds of 3.35% Series, and the Trustee’s certificate to be endorsed on  the Bonds of 3.35% Series, shall be substantially in the following forms, respectively:  [FORM OF FACE OF BOND OF 3.35% SERIES]  [THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED, OR THE SECURITIES OR “BLUE SKY” LAWS OF ANY OTHER JURISDICTION,  AND MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH SUCH REGISTRATION  REQUIREMENTS OR UNDER AN EXEMPTION THEREFROM.]    

 

  14    POTOMAC ELECTRIC POWER COMPANY  (A District of Columbia and Virginia corporation)  First Mortgage Bond, 3.35% Series due September 15, 2032  No. [______] $[__________]  PPN No. [______]  POTOMAC ELECTRIC POWER COMPANY, a corporation organized and existing  under the laws of the District of Columbia and a domestic corporation of the Commonwealth of Virginia  (hereinafter called the “Company”, which term shall include any successor corporation as defined in the  Amended Indenture hereinafter referred to), for value received, hereby promises to pay to [__________]  or registered assigns, the sum of [____________] Dollars ($[___________]), on the fifteenth day of  September, 2032, in lawful money of the United States of America, and to pay interest thereon in like  money from the later of the date of delivery of the initial Bonds of 3.35% Series or the March 15 or  September 15 next preceding the date of this Bond, or if the Company shall default in the payment of  interest due on such interest payment date, then from the next preceding interest payment date or the date  of delivery of the initial Bonds of 3.35% Series, whichever is later, at the rate of three and thirty-five  hundredths percent (3.35%) per annum, payable semiannually, commencing March 15, 2023, on the  fifteenth day of March or September in each year until maturity, or, if the Company shall default in the  payment of the principal hereof, until the Company’s obligation with respect to the payment of such  principal shall be discharged as provided in the Amended Indenture. The interest so payable on any  March 15 or September 15 will, subject to certain exceptions provided in the indenture dated as of March  1, 2022 supplemental to the Amended Indenture, be paid to the person in whose name this Bond is  registered at the close of business on the first calendar day of the month in which the interest payment  date occurs. Both principal of, and interest on, this Bond are payable at the agency of the Company in the  Borough of Manhattan, The City of New York.  Reference is made to the further provisions of this Bond set forth on the reverse hereof,  and such further provisions shall for all purposes have the same effect as though fully set forth at this  place.  This Bond shall not be entitled to any benefit under the Amended Indenture or any  indenture supplemental thereto, or become valid or obligatory for any purpose, until The Bank of New  York Mellon, the Trustee under the Amended Indenture, or a successor trustee thereto under the  Amended Indenture, shall have signed the form of certificate endorsed hereon.  IN WITNESS WHEREOF, Potomac Electric Power Company has caused this Bond to be  signed in its name by the signature (whether manual or electronic) of one of its Authorized Officers, and  attested by the manual or electronic signature of its Secretary or an Assistant Secretary.  Dated:   POTOMAC ELECTRIC POWER COMPANY  

 

  15    By    Ryan Brown, Assistant Treasurer  Attest:     Assistant Secretary    [FORM OF TRUSTEE’S CERTIFICATE]  This Bond is one of the Bonds, of the series designated therein, described in the within- mentioned Amended Indenture and the Supplemental Indenture dated as of March 1, 2022.  Dated: The Bank of New York Mellon, as Trustee  By    Authorized Signatory  [TEXT APPEARING ON REVERSE SIDE OF BOND OF 3.35% SERIES]  This Bond is one of a duly authorized issue of Bonds of the Company (hereinafter called  the “Bonds”) in unlimited aggregate principal amount, of the series hereinafter specified, all issued and to  be issued under and equally secured (except in so far as any purchase or sinking fund or analogous  provisions for any particular series of Bonds, established by any indenture supplemental to the Amended  Indenture hereinafter mentioned, may afford additional security for such Bonds) by a mortgage and deed  of trust, dated July 1, 1936, executed by the Company to The Bank of New York Mellon as successor to  The Riggs National Bank of Washington, D.C. (herein called the “Trustee”), as trustee, as amended by  indentures supplemental thereto dated December 10, 1939, August 10, 1942, October 15, 1942, April 1,  1966, June 16, 1981, June 17, 1981, December 1, 1981, August 1, 1982, October 1, 1982, April 15, 1983,  November 1, 1985, March 1, 1986, November 1, 1986, March 1, 1987, September 16, 1987, May 1, 1989,  August 1, 1989, April 5, 1990, May 21, 1991, May 7, 1992, September 1, 1992, November 1, 1992,  March 1, 1993, March 2, 1993, July 1, 1993, August 20, 1993, September 29, 1993, September 30, 1993,  October 1, 1993, February 10, 1994, February 11, 1994, March 10, 1995, September 6, 1995, September  7, 1995, October 2, 1997, March 17, 1999, November 17, 2003, March 16, 2004, May 24, 2005, April 1,  2006, November 13, 2007, March 24, 2008, December 3, 2008, March 28, 2012, March 11, 2013,  November 14, 2013, March 11, 2014, March 9, 2015, May 15, 2017, June 1, 2018, May 2, 2019,  February 12, 2020, February 15, 2021, and March 1, 2022 (said mortgage and deed of trust, as so  amended, being herein called the “Amended Indenture”) and all indentures supplemental thereto, to  which Amended Indenture and supplemental indentures reference is hereby made for a description of the  properties mortgaged and pledged, the nature and extent of the security, the rights of the owners of the  Bonds and of the Trustee in respect thereto, and the terms and conditions upon which the Bonds are, and  are to be, secured. To the extent permitted by, and as provided in, the Amended Indenture, modifications  or alterations of the Amended Indenture, or of any indenture supplemental thereto, and of the rights and  obligations of the Company and of the holders of the Bonds may be made with the consent of the  Company by an affirmative vote of not less than 60% in amount of the Bonds entitled to vote then  

 

  16    outstanding, at a meeting of Bondholders called and held as provided in the Amended Indenture, and by  an affirmative vote of not less than 60% in amount of the Bonds of any series entitled to vote then  outstanding and affected by such modification or alteration, in case one or more but less than all of the  series of Bonds then outstanding under the Amended Indenture are so affected; provided, however, that  no such modification or alteration shall be made which will affect the terms of payment of the principal  of, or interest on, this Bond, which are unconditional, or which reduces the percentage of Bonds the  affirmative vote of which is required for the making of such modifications or alterations.  This Bond is one of a series designated as the “First Mortgage Bonds, 3.35% Series due  September 15, 2032” (herein called the “Bonds of 3.35% Series”) of the Company, issued under and  secured by the Amended Indenture and all indentures supplemental thereto and described in the  supplemental indenture, dated as of March 1, 2022 between the Company and the Trustee, supplemental  to the Amended Indenture.  The Bonds of 3.35% Series shall be redeemable at the option of the Company prior to the  express date of the maturity hereof, in whole or in part, at any time; provided that the Company may not  redeem less than 5% of the aggregate principal amount of the Bond of 3.35% Series in the case of any  partial redemption. The Company shall give notice of its intent to redeem such Bonds to the holders of  such Bond of 3.35% Series at least 30 days but no more than 60 days prior to the date fixed for such  redemption (the “Redemption Date”). If the Company redeems all or any part of the Bonds of 3.35%  Series pursuant to the provisions of this paragraph, it shall pay an amount equal to 100% of the principal  amount of the Bonds of 3.35% Series to be redeemed and a Make-Whole Amount, which shall be  calculated as follows:  “Make-Whole Amount” means, as determined by the Company, with respect to any Bond of  3.35% Series, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled  Payments with respect to the Called Principal of such Bond of 3.35% Series over the amount of such  Called Principal of such Bond of 3.35% Series, provided, that the Make-Whole Amount may in no event  be less than zero.  For the purposes of determining the Make-Whole Amount, the following terms have  the following meanings and each of which will be determined by the Company:  “Business Day” means any day other than a Saturday, a Sunday or a day on which  commercial banks in New York City are required or authorized to be closed.  “Called Principal” means, with respect to any Bond of 3.35% Series, the principal of such  Bond of 3.35% Series that is to be redeemed or has become or is declared to be immediately  due and payable pursuant to the Amended Indenture.  “Discounted Value” means, with respect to the Called Principal of any Bond of 3.35% Series,  the amount obtained by discounting all Remaining Scheduled Payments with respect to such  Called Principal from their respective scheduled due dates to the Settlement Date with respect  to such Called Principal, in accordance with accepted financial practice and at a discount  factor (applied on the same periodic basis as that on which interest on the Bonds of 3.35%  Series is payable) equal to the Reinvestment Yield with respect to such Called Principal.  “Reinvestment Yield” means, with respect to the Called Principal of any Bond of 3.35%  Series, the sum of (a) 0.50% plus (b) the yield to maturity implied by the “Ask Yield(s)”  reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the  

 

  17    Settlement Date with respect to such Called Principal, on the display designated as “Page  PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for  the most recently issued actively traded on-the-run U.S. Treasury securities (“Reported”)  having a maturity equal to the Remaining Average Life of such Called Principal as of such  Settlement Date.  If there are no such U.S. Treasury securities Reported having a maturity  equal to such Remaining Average Life, then such implied yield to maturity will be  determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in  accordance with accepted financial practice and (ii) interpolating linearly between the “Ask  Yields” Reported for the applicable most recently issued actively traded on-the-run U.S.  Treasury securities with the maturities (1) closest to and greater than such Remaining  Average Life and (2) closest to and less than such Remaining Average Life.  The  Reinvestment Yield shall be rounded to the number of decimal places as appears in the  interest rate of the applicable Bond of 3.35% Series.  If such yields are not Reported or the yields Reported as of such time are not ascertainable  (including by way of interpolation), then “Reinvestment Yield” means, with respect to the  Called Principal of any Bond of 3.35% Series, the sum of (x) 0.50% plus (y) the yield to  maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for  which such yields have been so reported as of the second Business Day preceding the  Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release  H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity  having a term equal to the Remaining Average Life of such Called Principal as of such  Settlement Date.  If there is no such U.S. Treasury constant maturity having a term equal to  such Remaining Average Life, such implied yield to maturity will be determined by  interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the  term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury  constant maturity so reported with the term closest to and less than such Remaining Average  Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in  the interest rate of the applicable Bond of 3.35% Series.  “Remaining Average Life” means, with respect to any Called Principal, the number of years  obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by  multiplying (a) the principal component of each Remaining Scheduled Payment with respect  to such Called Principal by (b) the number of years, computed on the basis of a 360-day year  comprised of twelve 30-day months and calculated to two decimal places, that will elapse  between the Settlement Date with respect to such Called Principal and the scheduled due date  of such Remaining Scheduled Payment.  “Remaining Scheduled Payments” means, with respect to the Called Principal of any Bond of  3.35% Series, all payments of such Called Principal and interest thereon that would be due  after the Settlement Date with respect to such Called Principal if no payment of such Called  Principal were made prior to its scheduled due date, provided that if such Settlement Date is  not a date on which interest payments are due to be made under the Bond of 3.35% Series,  then the amount of the next succeeding scheduled interest payment will be reduced by the  amount of interest accrued to such Settlement Date and required to be paid on such  Settlement Date.  “Settlement Date” means, with respect to the Called Principal of any Bond of 3.35% Series,  the date on which such Called Principal is to be prepaid or has become or is declared to be  immediately due and payable pursuant to the Amended Indenture, as the context requires.  The Company’s notice of redemption to the holders of Bonds of 3.35% Series shall specify  

 

  18    such date (which shall be a Business Day), the aggregate principal amount of the Bonds of  3.35% Series to be prepaid on such date, the principal amount of each Bond of 3.35% Series  held by such holder to be prepaid (determined in accordance with the next paragraph hereof),  and the interest to be paid on the prepayment date with respect to such principal amount  being prepaid, and shall be accompanied by a certificate of the chief financial officer,  principal accounting officer, treasurer, assistant treasurer or comptroller of the Company  (each, a “Senior Financial Officer”) as to the estimated Make-Whole Amount due in  connection with such prepayment (calculated as if the date of such notice were the date of the  prepayment), setting forth the details of such computation.  Two Business Days prior to such  prepayment, the Company shall deliver to the Trustee and each holder of Bonds of 3.35%  Series a certificate of a Senior Financial Officer specifying the calculation of such Make- Whole Amount as of the specified prepayment date.  Provided that no default or event of default has occurred and is continuing, within ninety  days (90) days of the stated maturity date of the Bonds of 3.35% Series (the period from such date to the  stated maturity of the Bonds of 3.35% Series being referred to herein as the “Prepayment Period”), the  Company may, at its option, upon prior written notice as provided below, prepay all the Bonds of 3.35%  Series at 100% of the principal amount so prepaid, together with interest on such principal amount  accrued to the date of prepayment and without any Make-Whole Amount.  In the case of each partial prepayment of the Bonds of 3.35% Series, the principal amount  of the Bonds of 3.35% Series to be prepaid shall be allocated among all of the Bonds of 3.35% Series at  the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts  thereof not theretofore called for prepayment.  In the case of each prepayment of Bonds of 3.35% Series, the principal amount of each  Bond of 3.35% Series to be prepaid shall mature and become due and payable on the date fixed for such  prepayment, together with interest on such principal amount accrued to such date and the applicable  Make-Whole Amount, if any.  From and after such date, unless the Company shall fail to pay such  principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as  aforesaid, interest on such principal amount shall cease to accrue.  Any Bond of 3.35% Series paid or  prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Bond  of 3.35% Series shall be issued in lieu of any prepaid principal amount of any Bond of 3.35% Series.  The Company shall deliver to the Trustee before any Redemption Date for the Bonds of  3.35% Series its calculation of the amount applicable to such redemption. The Trustee shall be under no  duty to inquire into, may presume the correctness of, and shall be fully protected in acting upon, the  Company’s calculation of any redemption price of the Bonds of 3.35% Series.  If at the time notice of redemption is given the redemption moneys are not on deposit  with the Trustee, then the redemption shall be subject to the receipt of such moneys on or before the  Redemption Date, and such notice shall be of no effect unless such moneys are received.  In case an event of default, as defined in the Amended Indenture, shall occur, the  principal of all the Bonds at any such time outstanding under the Amended Indenture may be declared or  may become due and payable, upon the conditions and in the manner and with the effect provided in the  Amended Indenture. The Amended Indenture provides that such declaration may in certain events be  waived by the holders of a majority in principal amount of the Bonds entitled to vote then outstanding.  

 

  19    This Bond is transferable by the registered owner hereof, in person or by duly authorized  attorney, on the books of the Company to be kept for that purpose at the agency of the Company in the  Borough of Manhattan, The City of New York, upon surrender and cancellation of this Bond and on  presentation of a duly executed written instrument of transfer, and thereupon a new Bond or Bonds of the  same series, of the same aggregate principal amount and in authorized denominations will be issued to the  transferee or transferees in exchange therefor; and this Bond, with or without others of the same series,  may in like manner be exchanged for one or more new Bonds of the same series of other authorized  denominations but of the same aggregate principal amount; all subject to the terms and conditions set  forth in the Amended Indenture.  No recourse shall be had for the payment of the principal of, or the interest on, this Bond,  or for any claim based hereon or otherwise in respect hereof or of the Amended Indenture or any  indenture supplemental thereto, against any incorporator, or against any stockholder, director or officer,  past, present or future, of the Company or of any predecessor or successor corporation, either directly or  through the Company or any such predecessor or successor corporation, whether for amounts unpaid on  stock subscriptions or by virtue of any constitution, statute or rule of law, or by the enforcement of any  assessment or penalty or otherwise, all such liability, whether at common law, in equity, by any  constitution, statute or otherwise, of incorporators, stockholders, directors or officers being released by  every owner hereof by the acceptance of this Bond and as part of the consideration for the issue hereof,  and being likewise released by the terms of the Amended Indenture.  [END OF FORM]  SECTION 3. The Bonds of 3.35% Series shall be registered Bonds without coupons in  denominations of any multiple of $1,000, numbered consecutively upwards from R-1.   SECTION 4. The Bonds of 3.35% Series shall bear the following legend:  “THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED, OR THE SECURITIES OR “BLUE SKY” LAWS OF ANY OTHER JURISDICTION,  AND MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH SUCH REGISTRATION  REQUIREMENTS OR UNDER AN EXEMPTION THEREFROM.”  SECTION 5. In addition to the events of default described in Article IX of the Indenture,  an event of default with respect to the Bonds of 3.35% Series will include the additional events of default  described in Section 11 of the Bond Purchase Agreement  among the Company and the initial holders of  the Bonds of 3.35% Series specified on Schedule A to the Bond Purchase Agreement.  The Trustee shall  not be deemed to have knowledge of any event of default under the Bond Purchase Agreement unless a  responsible officer of the Trustee shall have received written notice thereof from the Company or by the  holders of the Bonds of 3.35% Series then outstanding.  SECTION 6. In order to enable the Trustee to comply with its obligations under applicable  tax laws, rules and regulations in effect from time to time (“Applicable Law”), the Company shall provide  to the Trustee, following written request from the Trustee, such information concerning the holders of the  Bonds of 3.35% Series as the Trustee may reasonably request in order to determine whether the Trustee  

 

  20    has any tax-related obligations under Applicable Law with respect to the payments made to holders of the  Bonds of 3.35% Series, but only to the extent (a) such information is in the Company’s possession, (b) such  information is not subject to any confidentiality or similar agreement or undertaking or otherwise deemed  by the Company to be confidential and (c) providing such information to the Trustee does not, in the  judgment of the Company, breach or violate or constitute a default under any applicable laws, rules or  regulations or any instrument or agreement to which the Company of any of its affiliates is a party or may  be bound. The Company, the Trustee or any paying agent for the Bonds of 3.35% Series shall be permitted  to make any withholding or deduction from the amount of principal and interest payable to holders of the  Bonds of 3.35% Series to the extent required under Applicable Law. Each holder of the Bonds of 3.35%  Series by accepting such bond shall be deemed to have agreed that the Company may provide to the Trustee  such information concerning such holder as the Trustee may request in order to determine whether the  Trustee has any tax-related obligations under Applicable Law with respect to the payments made to such  holder under this Supplemental Indenture; and such agreement by each holder is part of the consideration  for the issuance of the Bonds of 3.35% Series.  SECTION 7. Until Bonds of 3.35% Series in definitive form are ready for delivery, the  Company may execute, and upon its request in writing the Trustee shall authenticate and deliver, in lieu  thereof, Bonds for such series in temporary form, as provided in Section 9 of Article II of the Original  Indenture as amended.  PART III.  ISSUE OF BONDS.  SECTION 1. There is no limit as to the maximum principal amount of Bonds of 3.97%  Series or Bonds of 3.35% Series that may be authenticated and delivered by the Trustee or which may at  any one time be outstanding, except as the Original Indenture as amended limits the principal amount of  Bonds which may be issued thereunder.  SECTION 2. Subsequent to the execution and delivery hereof, Bonds of 3.97% Series in  the aggregate principal amount of $400,000,000, being the initial issue of Bonds of 3.97% Series and  Bonds of 3.35% Series in the aggregate principal amount of $225,000,000, being the initial issue of  Bonds of 3.35% Series, shall each forthwith be executed by the Company and delivered to the Trustee  and shall be authenticated by the Trustee and delivered (either before or after the recording hereof) to or  upon the order of the Company evidenced by a writing or writings, signed by its President or one of its  Vice Presidents and its Treasurer or one of its Assistant Treasurers, at such time or times as may be  requested by the Company subsequent to the receipt by the Trustee of:  (1) the certified resolution and the officers’ certificate required by Section 3(a) and  Section 3(b) of Article III of the Original Indenture as amended;  (2) the opinion of counsel required by Section 3(c) of Article III of the Original  Indenture as amended;  

 

  21    (3) cash, if any, in the amount required to be deposited by Section 3(d) of Article III  of the Original Indenture as amended, which shall be held and applied by the Trustee as provided in said  Section 3(d);  (4) the engineer’s certificate required by Section 4(a) of Article III of the Original  Indenture as amended;  (5)  the opinion of counsel required by Section 4(e) of Article III of the Original  Indenture as amended; and  (6) the certificates and opinions required by Article XVIII of the Original Indenture  as amended.  SECTION 3. Subsequent to the execution and delivery hereof and subject to Section 1 of  this Part III, additional Bonds of 3.97% Series and Bonds of 3.35% Series in an unlimited principal  amount may be executed by the Company and delivered to the Trustee and shall be authenticated by the  Trustee and delivered to or upon the order of the Company evidenced by a writing or writings, signed by  its President or one of its Vice Presidents and its Treasurer or one of its Assistant Treasurers, at such time  or times as may be requested by the Company subsequent to the receipt by the Trustee of such  resolutions, certificates and opinions as are required by the terms of the Original Indenture as amended  and compliance with all provisions of the Original Indenture as amended applicable to the authentication  and delivery of Bonds of 3.97% Series and Bonds of 3.35% Series.  PART IV.  REDEMPTION AND CANCELLATION OF BONDS.  SECTION 1. The Bonds of 3.97% Series shall, in accordance with the provisions of  Article V of the Original Indenture as amended, be redeemable, at any time or from time to time prior to  maturity, at the option of the Company, either as a whole or in part by lot, as set forth in the form of Bond  of 3.97% Series contained in Section 2 of Part I hereof.  SECTION 2. The Bonds of 3.35% Series shall, in accordance with the provisions of  Article V of the Original Indenture as amended, be redeemable, at any time or from time to time prior to  maturity, at the option of the Company, either as a whole or in part by lot, as set forth in the form of Bond  of 3.35% Series contained in Section 2 of Part II hereof.  SECTION 3. In accordance with the provisions of Article V of the Original Indenture as  amended, notice of any redemption shall be sent by the Company through the mails, postage prepaid, at  least 30 days and not more than 60 days prior to the date of redemption, to the registered owners of any of  the Bonds to be redeemed at their addresses as the same shall appear on the transfer register of the  Company.  SECTION 4. All Bonds delivered to or redeemed by the Trustee pursuant to the  provisions of this Part IV shall forthwith be cancelled.  

 

  22    PART V.  ADDITIONAL PARTICULAR COVENANTS OF THE COMPANY.  The Company hereby covenants, warrants and agrees that so long as any Bonds of 3.97%  Series or Bonds of 3.35% Series are outstanding:  SECTION 1. The Company will not withdraw, pursuant to the provisions of Section 2 of  Article VIII of the Original Indenture as amended, any moneys held by the Trustee as part of the trust  estate in excess of an amount equal to the aggregate principal amount of such of the refundable Bonds as  were theretofore issued by the Company; and that upon any such withdrawal by the Company refundable  Bonds equal in aggregate principal amount to the amount so withdrawn shall be deemed to have been  made the basis of such withdrawal.  SECTION 2. Property additions purchased, constructed or otherwise acquired on or  before December 31, 1946 shall not be made the basis for the authentication and delivery of Bonds, or the  withdrawal of cash, or the reduction of the amount of cash required to be paid to the Trustee under any  provision of the Original Indenture as amended.  PART VI.  AMENDMENT OF INDENTURE TO PERMIT QUALIFICATION UNDER THE TRUST  INDENTURE ACT.  The Company and the Trustee, from time to time and at any time, without any vote or  consent of the holders of the Bonds of 3.97% Series and Bonds of 3.35% Series, may enter into such  indentures supplemental to the Original Indenture as may or shall by them be deemed necessary or  desirable to add to or modify or amend any of the provisions of the Original Indenture so as to permit the  qualification of the Original Indenture under the Trust Indenture Act.  Except to the extent specifically provided herein, no provision of this Supplemental  Indenture is intended to modify, and the parties hereto do hereby adopt and confirm, the provisions of  Section 318(c) of the Trust Indenture Act which amend and supersede provisions of the Original  Indenture, as supplemented, in effect prior to November 15, 1990.  PART VII.  THE TRUSTEE.  The Trustee hereby accepts the trusts hereby declared and provided and agrees to perform  the same upon the terms and conditions in the Original Indenture as amended set forth and upon the  following terms and conditions:  The Trustee shall not be responsible in any manner whatsoever for or in respect of the  validity or sufficiency of this Supplemental Indenture or the due execution hereof by the Company or for  or in respect of the recitals contained herein, all of which recitals are made by the Company solely. In  general, each and every term and condition contained in Article XIII of the Original Indenture as  amended shall apply to this Supplemental Indenture with the same force and effect as if the same were  

 

  23    herein set forth in full, with such omissions, variations and modifications thereof as may be appropriate to  make the same conform to this Supplemental Indenture.  PART VIII.  MISCELLANEOUS PROVISIONS.  This Supplemental Indenture may be simultaneously executed in any number of  counterparts, each of which when so executed shall be deemed to be an original; but such counterparts  shall together constitute but one and the same instrument.  The Company hereby constitutes and appoints Elizabeth M. Hensen, one of its Assistant  Secretaries, to be its true and lawful attorney-in-fact, for it and in its name to appear before any officer  authorized by law to take and certify acknowledgments of deeds to be recorded in the District of  Columbia, in the State of Maryland, in the Commonwealth of Virginia, and in the Commonwealth of  Pennsylvania and to acknowledge and deliver these presents as the act and deed of said Company.  The Bank of New York Mellon, hereby constitutes and appoints Francine Kincaid, one of  its Vice Presidents, to be its true and lawful attorney-in-fact, for it and in its name to appear before any  officer authorized by law to take and certify acknowledgments of deeds to be recorded in the District of  Columbia, in the State of Maryland, in the Commonwealth of Virginia, and in the Commonwealth of  Pennsylvania and to acknowledge and deliver these presents as the act and deed of said The Bank of New  York Mellon.  The Company agrees that the Trustee shall have the right to accept and act upon  instructions, including funds transfer instructions (“Instructions”) given pursuant to the Amended  Indenture and delivered using Electronic Means; provided, however, that the Company shall provide to  the Trustee an incumbency certificate listing officers with the authority and designated to provide such  Instructions (“Authorized Officers”) and containing specimen signatures of such Authorized Officers,  which incumbency certificate shall be amended by the Company whenever a person is to be added or  deleted from the listing.  If the Company elects to give the Trustee Instructions using Electronic Means  and the Trustee in its discretion elects to act upon such Instructions, the Trustee’s understanding of such  Instructions shall be deemed controlling.  The Company understands and agrees that the Trustee cannot  determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively  presume that directions that purport to have been sent by an Authorized Officer listed on the incumbency  certificate provided to the Trustee have been sent by such Authorized Officer.  The Company shall be  responsible for ensuring that only Authorized Officers transmit such Instructions to the Trustee and that  the Company and all Authorized Officers are solely responsible to safeguard the use and confidentiality  of applicable user and authorization codes, passwords and/or authentication keys upon receipt by the  Company.  The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly  from its reliance upon and compliance with such Instructions notwithstanding such directions conflict or  are inconsistent with a subsequent written instruction.  The Company agrees: (i) to assume all risks  arising out of the use of Electronic Means to submit Instructions to the Trustee, including without  limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and  misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various  methods of transmitting Instructions to the Trustee and that there may be more secure methods of  

 

  24    transmitting Instructions than the method(s) selected by the Company; (iii) that the security procedures (if  any) to be followed in connection with its transmission of Instructions provide to it a commercially  reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the  Trustee immediately upon learning of any compromise or unauthorized use of the security procedures.  "Electronic Means" shall mean the following communications methods: e-mail, facsimile transmission,  secure electronic transmission containing applicable authorization codes, passwords and/or authentication  keys issued by the Trustee, or another method or system specified by the Trustee as available for use in  connection with its services hereunder.  (SIGNATURE PAGE FOLLOWS)  

 

        IN WITNESS WHEREOF, said Potomac Electric Power Company has caused this  Supplemental Indenture to be executed on its behalf by an Authorized Officer; and said The Bank of New  York Mellon, in evidence of its acceptance of the trust hereby created, has caused this Supplemental  Indenture to be executed on its behalf by one of its Vice Presidents, and this Supplemental Indenture to be  attested by one of its authorized officers, all as of the 1st day of March, 2022.  Potomac Electric Power Company   By    Elizabeth M. Hensen  Authorized Officer     

 

  Trustee’s Signature Page to Supplemental Indenture  The Bank of New York Mellon, as Trustee   By                                                                                                     Francine Kincaid       Vice President    

 

    STATE OF ILLINOIS    )                                       ): SS:  COUNTY OF COOK)  I, _____________________, a Notary Public in and for the State of Illinois, United States  of America, do hereby certify that Elizabeth M. Hensen, whose name as an Authorized Officer of  Potomac Electric Power Company, a corporation, is signed to the foregoing and hereto attached  instrument, bearing date as of the 1st day of March, 2022, personally appeared this day before me in my  state aforesaid and acknowledged herself to be an Authorized Officer of Potomac Electric Power  Company, and that she as such, being authorized so to do, executed the said instrument by signing the  name of Potomac Electric Power Company by Elizabeth M. Hensen, as Authorized Officer, and  acknowledged the same before me in my state aforesaid and acknowledged the foregoing instrument to be  the act and deed of Potomac Electric Power Company.  Given under my hand this 1st day of March, 2022.  (Notarial Seal)     Notary Public   State of Illinois  My Commission Expires: _________  Certification:  This document was prepared under the supervision of an attorney admitted to practice before the Court of  Appeals of Maryland, or by or on behalf of one of the parties named in the within instrument.     Elizabeth M. Hensen, Esq   

 

      STATE OF NEW YORK    )                                       ): SS:  COUNTY OF NEW YORK)  On the 8th day of March, 2022, before me personally came, Francine Kincaid, to me known or  proved to me on the basis of sufficient identification and who, being by me duly sworn did depose and  say (1) she is a Vice President of The Bank of New York Mellon, a New York banking corporation, one  of the parties to the foregoing instrument bearing date as of the 1st day of March, 2022 and hereto  annexed, (2) she executed the said instrument as a Vice President of and on behalf of said The Bank of  New York Mellon for the purpose of perfecting such Supplemental Indenture on behalf of said  corporation, (3) she acknowledged said instrument to be the act and deed of said The Bank of New York  Mellon and delivered the same as such and (4) she signed her name thereto by order of the Board of  Directors of said corporation.  (Notarial Seal)            Helen Choi  Notary Public, State of New York  No. 01CH6291290  Qualified in New York County  Commission Expires October 15, 2025     

 

    CERTIFICATE OF RESIDENCE  The Bank of New York Mellon, Mortgagee and Trustee within named, hereby certifies  that its precise address is 240 Greenwich Street, in the Borough of Manhattan, in The City of New York,  in the State of New York.  The Bank of New York Mellon, as Trustee  By:     Francine Kincaid    Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]