Document:

Exhibit 4.3

 

	Prepared by: Jeffrey M. Taylor
	701 Ninth Street, N.W. - Mail Stop EP1300
	Washington, D.C. 20068
	Phone (202) 872-2246
	 
	Return to: Jeffrey M. Taylor
	Associate General Counsel - PHI
	701 Ninth Street, N.W. - Mail Stop EP1300
	Washington, D.C. 20068
	Phone (202) 872-2246

 

POTOMAC ELECTRIC POWER COMPANY

 

701 Ninth Street, N.W., Washington, D.C.

 

TO

 

THE BANK OF NEW YORK MELLON

 

101 Barclay Street, New York, NY

 

as Trustee

 

 

 

Supplemental Indenture

 

Dated as of March 9, 2015

 

 

 

Supplemental to Mortgage and Deed of Trust

 

Dated July 1, 1936

 

 

 

FIRST MORTGAGE BONDS, 4.15% SERIES DUE MARCH
15, 2043

 

    	 

    	 

    

 

POTOMAC ELECTRIC POWER COMPANY

 

SUPPLEMENTAL INDENTURE DATED AS OF MARCH 9,
2015

TABLE OF CONTENTS*

 

 

 

	 	 	PAGE
	Parties	 	1
	Recitals	 	1
	 	PART I	 
	 	 	 
	 	Additional Issuance of Bonds of 4.15% Series	5
	 	 	 
	 	PART II	 
	 	 	 
	 	Additional Particular Covenants of the Company	5
	 	 	 
	Section 1.	Company not to withdraw moneys pursuant to Section 2 of Article VIII in excess of an amount equal to principal amount of issued refundable bonds	5
	Section 2.	No property additions made on or prior to December 31, 1946 to be used for any purpose under the Indenture	6
	 	 	 
	 	PART III	 
	 	 	 
	 	Amendment of Indenture to Permit Qualification Under the Trust Indenture Act	6
	 	 	 
	 	PART IV	 
	 	 	 
	 	The Trustee	6
	 	 	 
	 	PART V	 
	 	 	 
	 	Miscellaneous Provisions	6
	 	 	 
	 	Execution of Supplemental Indenture in counterparts	 
	 	Appointment of attorneys-in-fact by parties	 
	 	Testimonium	 
	 	Execution	 
	 	Company’s Acknowledgments	 
	 	Trustee’s Acknowledgments	 

 

 

*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.

 

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SUPPLEMENTAL INDENTURE, dated
as of March 9, 2015, 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 banking corporation organized and existing under the laws of the State
of New York (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 and March 11, 2014
have been heretofore entered into between the Company and the Trustee to provide, respectively, for the creation of the first through
the seventy-fifth 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 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

 

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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), $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

 

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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); $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); $250,000,000 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); and $400,000,000 principal amount
of Bonds of the 3.60% Series due 2024 (the seventy-fifth series); 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 and November 17, 2003 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, 1993, October 2, 1997 and December 19, 2014 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

 

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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 in substitution for refundable Bonds, upon compliance with the provisions
of Section 7 of Article III of the Original Indenture as amended; and

 

WHEREAS, the Company, by
appropriate action and in conformity with the terms of the Original Indenture has created a series of bonds known as First Mortgage
Bonds, 4.15% Series due March 15, 2043 (hereinafter called “Bonds of 4.15% Series”); and

 

WHEREAS, the terms and provisions
of the Bonds of 4.15% Series, and the form thereof, were set forth in an indenture supplemental to the Original Indenture, dated
as of March 11, 2013, between the Company and the Trustee (hereinafter sometimes referred to as the “4.15% Series Supplemental
Indenture”), which 4.15% Series Supplemental Indenture also provided for the initial issuance of Two Hundred Fifty Million
Dollars ($250,000,000) aggregate principal amount of Bonds of 4.15% Series;

 

WHEREAS, pursuant to Part
II, Section 1 of the 4.15% Series Supplemental Indenture, the principal amount of the Bonds of 4.15% Series that may be authenticated
and delivered under the Original Indenture, as amended, is not limited, except as the Original Indenture limits the principal amount
of bonds that may be issued thereunder;

 

WHEREAS, all acts and things
prescribed by law and by the charter and bylaws of the Company necessary to make the Bonds of 4.15% Series, when executed by the
Company and authenticated by the Trustee, as in the Original Indenture provided, valid, binding and legal obligations of the Company,
entitled in all respects to the security of the Original Indenture and indentures supplemental thereto, have been performed; and

 

WHEREAS, provision is made
in Article II, Section 2 and Article XIV, Section 1 of the Original Indenture for additional supplemental indentures to the Original
Indenture, for the purpose of (i) evidencing the determination of the Board of Directors of the Company to establish the terms
of a series of bonds to be issued under the Original Indenture; (ii) adding to the covenants and agreements of the Company in the
Original Indenture other covenants and agreements thereafter to be observed by the Company, or to surrender any right or power
reserved to or conferred upon the Company in the Original Indenture; and (iii) subjecting to the lien of the Original Indenture
any additional properties acquired after the date of the Original Indenture, with the same force and effect as though included
in the granting clause thereof, and for any other purpose not inconsistent with the terms of the Original Indenture; and the Company
since the date of the Original Indenture has acquired additional property not heretofore specifically subjected to the lien of
the Original Indenture; and the Company desires to add certain further covenants and agreements of the Company for the protection
of the mortgaged and pledged property and the holders of the bonds, as provided in this indenture supplemental to the Original
Indenture (this “Supplemental Indenture”), which the Board of Directors of the Company and the Trustee consider to
be for the protection of the holders of the bonds; and the Company desires to issue an additional Two Hundred Million Dollars ($200,000,000)
in

 

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aggregate principal amount
of the Bonds of 4.15% Series; and the Company therefore deems it advisable to enter into this Supplemental Indenture in the form
and terms hereof; 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 ensealing and 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.

 

Additional Issuance of Bonds
of 4.15% Series

 

Bonds of 4.15% Series for
the aggregate principal amount of Two Hundred Million Dollars ($200,000,000), shall forthwith be executed by the Company and delivered
to the Trustee and shall be authenticated by the Trustee and delivered, after the recording hereof, in accordance with the request
of the Company, signed by its President or one of its Vice Presidents and its Treasurer or one of its Assistant Treasurers, upon
compliance by the Company with the applicable provisions of Articles III and XVIII of the Indenture. Said bonds shall be issued
as an additional amount of the Bonds of 4.15% Series. Upon the issuance of said Bonds of 4.15% Series, the total outstanding aggregate
principal amount of Bonds of 4.15% Series shall be Four Hundred and Fifty Million Dollars ($450,000,000).

 

PART II.

 

Additional Particular Covenants
of the Company.

 

The Company hereby covenants,
warrants and agrees that so long as any Bonds of 4.15% 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

 

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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 III.

 

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 4.15% 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 IV.

 

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 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 V.

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.

 

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The Company hereby constitutes
and appoints Frederick J. Boyle, one of its Senior 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 Company.

 

The Bank of New York Mellon,
hereby constitutes and appoints Laurence J. O’Brien, 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.

 

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IN WITNESS WHEREOF, said
Potomac Electric Power Company has caused this Supplemental Indenture to be executed on its behalf by its President or one of its
Vice Presidents and its corporate seal to be hereto affixed and said seal and this Supplemental Indenture to be attested by its
Secretary or one of its Assistant Secretaries; 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 its corporate
seal to be hereto affixed and said seal and this Supplemental Indenture to be attested by one of its authorized officers, all as
of the 9th day of March, 2015.

 

	 	 	Potomac Electric Power Company
	 	 	 
	(Corporate Seal)	 	By	/s/ Frederick J. Boyle
	 	 	 	Frederick J. Boyle
	 	 	 	Senior Vice President
	 	 	 	 
	Attested:	 	 
	 	 	 
	/s/ Jane K. Storero	 	 
	Jane K. Storero	 	 
	Secretary	 	 
	 	 	 
	Signed, sealed and delivered by	 	 
	Potomac Electric Power Company in 	 	 
	the presence of:	 	 
	 	 	 
	/s/ Deborah A. Gardner	 	 
	 	 	 
	/s/ Kerri L. Clark	 	 
	 	 	 
	As Witnesses	 	 

 

    	 

    	 

    

 

	 	 	The Bank of New York Mellon, as Trustee
	 	 	 
	(Corporate Seal)	 	By	/s/ Laurence J. O’Brien
	 	 	 	Laurence J. O’Brien
	 	 	 	Vice President
	Attested:	 	 
	 	 	 
	/s/ Timothy W. Casey	 	 
	Timothy W. Casey	 	 
	Vice President	 	 
	 	 	 
	Signed, sealed and delivered by The	 	 
	Bank of New York Mellon in the presence	 	 
	of:	 	 
	 	 	 
	/s/ Deborah A. Gardner	 	 
	 	 	 
	/s/ Kerri L. Clark	 	 
	 	 	 
	As Witnesses	 	 

 

    	 

    	 

    

 

City of Washington,

		District of Columbia,	ss.:

 

I, Linda Epperly, a Notary
Public in and for the District of Columbia, United States of America, do hereby certify that Frederick J. Boyle and Jane K. Storero,
whose names as Senior Vice President and Secretary, respectively, of Potomac Electric Power Company, a corporation, are signed
to the foregoing and hereto attached deed, bearing date as of the 9th day of March, 2015, personally appeared this day before me
in my District aforesaid and acknowledged themselves to be, respectively, a Senior Vice President and the Secretary of Potomac
Electric Power Company, and that they as such, being authorized so to do, executed the said deed by signing the name of Potomac
Electric Power Company by Frederick J. Boyle, as Senior Vice President, and attested by Jane K. Storero, as Secretary, and acknowledged
the same before me in my District aforesaid and acknowledged the foregoing instrument to be the act and deed of Potomac Electric
Power Company.

 

Given under my hand and official
seal this 9th day of March, 2015.

 

	(Notarial Seal) 	 
	 	/s/ Linda Epperly
	 	Notary Public 
	 	District of Columbia
	 	 
	 	My Commission Expires: January 1, 2020

 

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.

 

	 	/s/ Jeffrey M. Taylor
	 	Jeffrey M. Taylor, Esq.

 

    	 

    	 

    

 

City of Washington,

		District of Columbia,	ss.:

 

I, Linda Epperly, a Notary
Public in and for the District of Columbia, United States of America, do hereby certify that Frederick J. Boyle, a Senior Vice
President of Potomac Electric Power Company, a corporation, one of the parties to the foregoing instrument bearing date as of the
9th day of March, 2015, and hereto annexed, this day personally appeared before me in the City of Washington, the said Frederick
J. Boyle being personally well known to me as the person who executed the said instrument as a Senior Vice President of and on
behalf of said Potomac Electric Power Company and known to me to be the attorney-in-fact duly appointed therein to acknowledge
and deliver said instrument on behalf of said corporation, and, as such attorney-in-fact, he acknowledged said instrument to be
the act and deed of said Potomac Electric Power Company, and delivered the same as such. I further certify that the said Frederick
J. Boyle, being by me duly sworn, did depose and say that he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal and was so affixed by order of the Board of Directors of said corporation; and that he signed
his name thereto by like order.

 

Given under my hand and official
seal this 9th day of March, 2015.

 

(Notarial Seal)

 

	 	/s/ Linda Epperly
	 	Notary Public 
	 	District of Columbia
	 	 
	 	My Commission Expires: January 1, 2020

 

    	 

    	 

    

 

City of Washington,

		District of Columbia,	ss.:

 

I, Linda Epperly, a Notary
Public in and for the District of Columbia, United States of America, do hereby certify that Laurence J. O’Brien and Timothy
W. Casey, each of whose names as a Vice President of The Bank of New York Mellon, a New York banking corporation, are signed to
the foregoing and hereto attached deed, bearing date as of the 9th day of March, 2015, personally appeared before me this day in
the City of Washington and acknowledged themselves to be, each a Vice President of The Bank of New York Mellon, and that they as
such, being authorized so to do, executed the said deed by signing the name of The Bank of New York Mellon, by Laurence J. O’Brien,
as Vice President, and attested by Timothy W. Casey, as Vice President, and acknowledged the same before me in the District aforesaid
and acknowledged the foregoing instrument to be the act and deed of The Bank of New York Mellon, as therein set forth.

 

Given under my hand and official
seal this 9th day of March, 2015.

 

(Notarial Seal)

 

	 	/s/ Linda Epperly
	 	Notary Public 
	 	District of Columbia
	 	 
	 	My Commission Expires: January 1, 2020

 

    	 

    	 

    

 

City of Washington,

		District of Columbia,	ss.:

 

Laurence J. O’Brien,
of full age, being sworn according to law, on his oath deposes and says that he is a Vice President of The Bank of New York Mellon,
the Trustee named in the foregoing Supplemental Indenture, dated as of the 9th day of March, 2015, that he is the Vice President
of said Trustee for the purpose of perfecting such Supplemental Indenture and that the consideration in the Original Indenture
referred to therein and in all indentures supplemental to said Original Indenture, including the foregoing Supplemental Indenture,
is true and bona fide as therein set forth.

 

Subscribed and sworn to before me this 9th day
of March, 2015.

 

(Notarial Seal)

 

	 	/s/ Linda Epperly
	 	Notary Public 
	 	District of Columbia
	 	 
	 	My Commission Expires: January 1, 2020

 

    	 

    	 

    

 

City of Washington,

		District of Columbia,	ss.:

 

I, Linda Epperly, a Notary
Public in and for the District of Columbia, United States of America, do hereby certify that Laurence J. O’Brien, 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 9th day of March, 2015, and hereto annexed, this day personally appeared before me, the said Vice President, being
personally well known to me as the person who executed the said instrument as a Vice President of and on behalf of said The Bank
of New York Mellon, and known to me to be the attorney-in-fact duly appointed therein to acknowledge and deliver said instrument
on behalf of said corporation, and, as such attorney-in-fact, he acknowledged said instrument to be the act and deed of said The
Bank of New York Mellon, and delivered the same as such. I further certify that the said Laurence J. O’Brien, being by me
duly sworn, did depose and say that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate
seal and was so affixed by order of the Board of Directors of said corporation; and that he signed his name thereto by like order.

 

Given under my hand and official
seal this 9th day of March, 2015.

 

(Notarial Seal)

	 	/s/ Linda Epperly
	 	Notary Public 
	 	District of Columbia
	 	 
	 	My Commission Expires:  January 1, 2020

 

    	 

    	 

    

 

CERTIFICATE OF RESIDENCE

 

The Bank of New York Mellon,
Mortgagee and Trustee within named, hereby certifies that its precise address is 101 Barclay Street, New York, New York 10286.

 

	 	The Bank of New York Mellon, as Trustee
	 	 
	 	By:	/s/ Laurence J. O’Brien
	 	 	Laurence J. O’Brien
	 	 	Vice PresidentEX-10.1

 Exhibit 10.1 

AMERICAN WATER WORKS COMPANY, INC. 

ANNUAL INCENTIVE PLAN 

  
 1 

 AMERICAN WATER WORKS COMPANY, INC. 

ANNUAL INCENTIVE PLAN 
  

	1.	Purpose 

 The purpose of the Plan is to give eligible full-time exempt employees an
annual opportunity to earn a cash incentive award that recognizes and rewards their contributions to the Company’s success. To this end, the Plan provides a means of annually rewarding Participants based on the performance of the Company, as a
whole or through a subsidiary, and, where appropriate, on a Participant’s personal performance. The Plan also provides the Committee with the ability to make incentive awards designated as “qualified performance-based compensation”
under Code section 162(m). All capitalized terms are as defined in Section 2. The Board adopted this Plan on March 4, 2015, effective as of January 1, 2015. 
  

	2.	Definitions 

 (a) “Award” shall mean the amount of the incentive
award (if any) that is earned by a Participant under the Plan for any Performance Period.  
 (b) “Award
Percentages” shall mean the applicable minimum, target and maximum percentage of annual base salary that a Participant would be eligible to earn as an Award based on the level of achievement of the Performance Goals for the Performance
Period, which Award Percentages shall be set by the Committee at the time the Performance Goals for the Performance Period are set; provided, that, if a Participant (other than Participants eligible to receive an Award designated as “qualified
performance-based compensation”) held more than one position during the Performance Period, then the Committee may designate different Award Percentages with respect to each position and the Award will be pro-rated to reflect the period during
which such Participant had each Award Percentage (based on the number of days during the Performance Period the Participant held each position).  

(c) “Board” shall mean the Company’s Board of Directors as constituted from time to time.  

(d) “Code” shall mean the Internal Revenue Code of 1986, as amended or any successor statute thereto and the
regulations promulgated thereunder.  
 (e) “Committee” shall mean the Compensation Committee of the Board.
With respect to the administration of Awards designated as “qualified performance-based compensation,” the Committee shall consist of two or more persons appointed by the Board, all of whom shall be “outside directors” as defined
under Code section 162(m). With respect to Awards not designated as “qualified performance-based compensation,” the Committee may delegate its responsibilities for administering the Plan to an award committee or an Executive Officer
as it deems appropriate; provided that it may not delegate its responsibilities under the Plan relating to Executive Officers or its authority to amend or terminate the Plan.  

(f) “Company” shall mean American Water Works Company, Inc. or any successor corporation.  

  
 2 

 (g) “Employee” shall mean an employee of the Employer (including
officers), but excluding any individual (i) employed in a casual or temporary capacity (i.e., those hired for a specific job of limited duration), (ii) characterized as “part-time” by the Employer, (iii) classified as a
“non-exempt” employee eligible for overtime compensation under the Fair Labor Standards Act of 1938, (iv) whose terms of employment are governed by a collective bargaining agreement that does not provide for participation in this
Plan, (v) characterized as a “leased employee” within the meaning of Code section 414, or (vi) classified by the Employer as a “contractor” or “consultant,” no matter how characterized by the Internal
Revenue Service, other governmental agency or a court. Any change of characterization or classification of an individual by any court, government agency (including, but not limited to, the Internal Revenue Service or U.S. Department of Labor), or
arbitrator shall have no effect upon the characterization or classification of an individual as an Employee for purposes of this Plan, unless the Committee determines otherwise.  

(h) “Employer” shall mean the Company and each of its subsidiaries.  

(i) “Executive Officer” shall mean the executive officers of the Company as defined in the Securities Exchange Act of
1934, as amended, and as determined by the Committee in its sole discretion.  
 (j) “Participant” for any
Performance Period, shall mean an Employee designated by the Committee to participate in the Plan. Only those Employees who are designated as Participants for a Performance Period shall be eligible to participate in the Plan for such Performance
Period.  
 (k) “Performance Goals” for any Performance Period, shall mean: (i) For Awards designated as
“qualified performance-based compensation” pursuant to Section 5, the performance goals of the Company, as specified by the Committee, based on one or more of the following objective criteria:
(A) diluted earnings per share, (B) environmental compliance, (C) safety performance, (D) service quality, (E) customer satisfaction, (F) stock price, (G) earnings per share, (H) price-earnings multiples,
(I) net earnings, (J) operating earnings, (K) revenue, (L) number of days sales outstanding in accounts receivable, (M) productivity, (N) margin, (O) EBITDA (earnings before interest, taxes, depreciation and
amortization), (P) net capital employed, (Q) return on assets, (R) stockholder return, (S) return on equity, (T) return on capital employed, (U) net income to shares of Company stock, (V) growth in assets,
(W) unit volume, (X) sales, (Y) cash flow, (Z) market share, (AA) relative performance to a comparison group designated by the Committee, and/or (BB) strategic business criteria consisting of one or more objectives based on
meeting specified revenue goals, market penetration goals, customer growth, geographic business expansion goals, cost targets or goals relating to acquisitions or divestitures. Any criteria used may be measured, as applicable, (I) in absolute
terms, (II) in relative terms (including but not limited to, the passage of time and/or against other companies or financial metrics), (III) on a per share and/or share per capita basis, (IV) against the performance of the Company and
its subsidiaries as a whole or against the Company or one or more particular subsidiary, entity, segment, operating unit or product of the Company, or any combination thereof, and /or (V) on a pre-tax or after-tax basis, or (ii) For Awards
not designated as “qualified performance-based compensation” pursuant to Section 5, the performance goals may be based on one or more of the objective criteria set forth in clause (i) above
and/or may take into account any other factors deemed appropriate by the Committee in its sole discretion. 

  
 3 

 (l) “Performance Period” shall mean the fiscal year of the Company or any
other period designated by the Committee with respect to which an Award may be earned.  
 (m) “Plan” shall
mean this American Water Works Company, Inc. Annual Incentive Plan, as from time to time amended and in effect.  
  

	3.	Eligibility 

 Subject to the limitations contained in this Section 3, all Employees
of the Employer are eligible to participate in the Plan. The Committee shall designate which Employees shall participate in the Plan for each Performance Period and only those Employees designated by the Committee to participate in the Plan for the
Performance Period shall be eligible to participate for such Performance Period. To be eligible to receive an Award with respect to any Performance Period, an Employee must be actively employed by the Employer on the day on which the Award payout
for a Performance Period is made (except as provided in Section 8). Newly hired Employees or Employees promoted/transferred to an eligible/higher class shall be eligible to receive a prorated Award for a Performance Period, provided that their
date of hire (or promotion/transfer) occurs on or before September 30, or such other date as the Committee may specify. 
  

	4.	Administration 

 The administration of the Plan shall be consistent with the purpose and
the terms of the Plan. The Plan shall be administered by the Committee. The Committee shall have full authority to establish the rules and regulations relating to the Plan, to interpret the Plan and those rules and regulations, to select
Participants in the Plan, to determine each Participant’s Award Percentages, to approve all of the Awards, to decide the facts in any case arising under the Plan and to make all other determinations, including factual determinations, and to
take all other actions necessary or appropriate for the proper administration of the Plan, including the delegation of such authority or power, where appropriate; provided, however, that the Committee shall not be authorized to increase the amount
of the Award payable to a Participant that would otherwise be payable pursuant to the terms of the Plan to the extent the Award is designated as “qualified performance-based compensation” under Code section 162(m). All powers of the
Committee shall be executed in its sole discretion, in the best interest of the Company, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly situated individuals. 

All Awards shall be made conditional upon the Participant’s acknowledgement, in writing or by acceptance of the Award, that all decisions
and determination of the Committee shall be final and binding on the Participant, his or her beneficiaries and any other person having or claiming an interest under such Award. Awards need not be uniform as among Participants. The Committee’s
administration of the Plan, including all such rules and regulations, interpretations, selections, determinations, approvals, decisions, delegations, amendments, terminations and other actions, shall be final and binding on the Employer and all
employees of the Employer, including the Participants and their respective beneficiaries. 

  
 4 

	5.	Determination of Awards 

 (a) Setting Award Percentages and Performance Goals.
 
 (i) To the extent Awards are designated as “qualified performance-based compensation” under Code section 162(m),
Performance Goals and Award Percentages must be pre-established by the Committee. Performance Goals and Award Percentages are considered pre-established if established in writing not later than 90 days after the commencement of the period of
service to which the Performance Goals relates. In no event will a Performance Goal and Award Percentage be considered pre-established if it is established after 25% of the period of service (as scheduled in good faith at the time the Performance
Goal is established) has elapsed. To the extent Awards are not designated as “qualified performance-based compensation,” the Committee may establish Performance Goals and Award Percentages for Participants at such time or times as the
Committee determines in its sole discretion. Subject to the requirements of this Section 5(a)(i), the Performance Goals and Award Percentages established by the Committee may be (but need not be) different for each Performance Period and
different Performance Goals and Award Percentages may be applicable to different Participants. 
 (ii) The Committee shall determine and
shall reflect in its minutes: (A) the Employees who shall be Participants during the Performance Period, (B) the Performance Goal or Goals for the Performance Period (and how they are weighted, if applicable) and (C) each
Participant’s Award Percentages. The Company shall notify each Participant of the Participant’s Award Percentages and the applicable Performance Goals for the Performance Period. 

(iii) To the extent permitted by Code section 162(m), if applicable, in setting the Performance Goals within the period prescribed in
Section 5(a)(i), the Committee may at such time also provide that the achievement of the Performance Goals will be determined without regard to the negative or positive effect of certain events, including for one or more of the following items:
asset write-downs; litigation or claim judgments or settlements; changes in accounting principles; changes in tax law or other laws affecting reported results; changes in commodity prices; severance, contract termination, and other costs related to
exiting, modifying or reducing any business activities; costs of, and gains and losses from, the acquisition, disposition, or abandonment of businesses or assets; gains and losses from the early extinguishment of debt; gains and losses in connection
with the termination or withdrawal from a pension plan; stock compensation costs and other non-cash expenses; any extraordinary non-recurring items as described in applicable Accounting Principles Board opinions or Financial Accounting Standards
Board statements or in management’s discussion and analysis of financial condition and results of operation appearing in the Company’s annual report to stockholders for the applicable year; or any other specified non-operating items as
determined by the Committee in setting Performance Goals. 
 (b) Earning An Award. Generally, a Participant earns an Award for a
Performance Period based on the level of achievement of the Performance Goals established by the 

  
 5 

 
Committee for that Performance Period. A Participant will receive no Award if the level of achievement of all Performance Goals is below the minimum required to earn an Award for the applicable
Performance Period, as specified by the Committee at the time the Performance Goals are established. No Participant may earn an Award that is greater than the maximum Award amount set forth in Section 5(c). Notwithstanding anything to the
contrary in the Plan, in determining the actual Award that is payable to a Participant, (i) with respect to Awards designated as “qualified performance-based compensation” under Code
section 162(m), the Committee, in its sole discretion, may reduce the Award payable to an amount below the amount that would otherwise be payable based on the level of achievement of the Performance Goals and (ii) with respect to Awards
not designated as “qualified performance-based compensation” under Code section 162(m), the Committee, in its sole discretion, may reduce or increase the Award payable below or above the amount
that would otherwise be payable based on the level of achievement of the Performance Goals 
 (c) Maximum Award Amount. The
maximum Award payable to any Participant for any fiscal year shall not exceed $3,000,000.  
 (d) Special Rules for Awards
Designated As Qualified Performance-Based Compensation. To the extent Awards are designated as “qualified performance-based compensation,” the Awards shall be based on Performance Goals for each Performance Period that shall satisfy
the requirements for “qualified performance-based compensation” under Code section 162(m), including the requirement that the achievement of the Performance Goals be substantially uncertain at
the time they are established and that the Performance Goals be objective and established in such a way that a third party with knowledge of the relevant facts could determine whether and to what extent the Performance Goals have been met. To the
extent that Awards designated as “qualified performance-based compensation” under Code section 162(m) are made, no such Award may be made as an alternative to any other award that is not
designated as “qualified performance-based compensation” but instead must be separate and apart from all other awards made. To the extent an Award is designated as “qualified performance-based compensation,” the Committee is authorized to reduce the Award payable to the applicable Participant for any Performance Period based upon its assessment of personal performance or other
factors, but not to increase the Award beyond the amount that is payable as a result of the level of achievement of the Performance Goals for such Performance Period, as certified by the Committee. Any reduction of an Award payable to a Participant
with respect to an Award designated as “qualified performance-based compensation” shall not result in an increase in the Award payable to any other Participant with respect to an Award designated as “qualified performance-based
compensation.”  
  

	6.	Changes to the Award Percentages 

 The Committee may at any time prior to the final
determination of Awards change the Award Percentages of any Participant or assign different Award Percentages to a Participant to reflect any change in the Participant’s responsibility level or position during the course of the Performance
Period; provided, however, that no such changes may be made with respect to Awards that are designated as “qualified performance-based compensation” under Code section 162(m). 

  
 6 

	7.	Payment of Awards 

 The Committee shall certify and announce the actual Awards that will
be paid to each Participant as soon as practicable following the final determination of the Company’s financial results for the relevant Performance Period. Subject to the provisions of Section 8, payment of the actual Awards certified by
the Committee shall normally be made, in a single lump sum cash payment as soon as practicable following the Committee certification, but in any event, such Award shall be paid on or after January 1 of the year following the year in which the
Performance Period ends, but no later than March 15 of the year following the year in which the Performance Period ends. 
  

	8.	Limitations on Rights to Payment of Awards 

 (a) Employment. Unless the
Committee determines otherwise, no Participant shall have any right to receive payment of an Award under the Plan for a Performance Period unless the Participant remains in the employ of the Employer through the date that Award is paid. 

(b) Accelerated Payment. In no event will payment be made to a Participant with respect to an Award designated as
“qualified performance-based compensation” or, unless the Committee determines otherwise, to any other Participant with respect to any other Award, prior to the end of the Performance Period to which it relates.  

 

	9.	Amendment, Suspension or Termination of the Plan 

 The Plan shall continue until
terminated by the Board or the Committee. The Board or the Committee may at any time amend (in whole or in part), suspend or terminate this Plan; provided, however, that the Board or the Committee shall not amend or modify the Plan without
stockholder approval if such approval is required by Code section 162(m). No such amendment which adversely affects any Participant’s rights to or interest in an Award earned prior to the date of the amendment shall be effective unless the
Participant shall have agreed thereto. If Awards are intended as “qualified performance-based compensation” under Code section 162(m), the Plan must be reapproved by the Company’s stockholders no later than the first
stockholders’ meeting that occurs in the fifth year following the year in which the stockholders previously approved the material terms of the performance goals under the Plan, if Awards after such stockholders’ meeting are to be made as
“qualified performance-based compensation” under Code section 162(m) and if required by Code section 162(m). 
  

	10.	Miscellaneous Provisions 

 (a) No Employment Right. This Plan is not a
contract between the Employer and the Employees or the Participants. Neither the establishment of this Plan, nor any action taken hereunder, shall be construed as giving any Employee or any Participant any right to be retained in the employ of the
Employer. The Company is under no obligation to continue the Plan. Nothing contained in the Plan shall limit or affect in any manner or degree the normal and usual powers of management, exercised by the officers and the Board or committees thereof,
to change the duties or the character of employment of any employee of the Employer or to remove the individual from the employment of the Employer at any time, all of which rights and powers are expressly reserved.  

  
 7 

 (b) Code Section 409A. The Plan is intended to comply with the short-term deferral
rule set forth in the regulations under Code section 409A in order to avoid application of Code section 409A to the Plan. If, and to the extent that, any payment under this Plan is deemed to be deferred compensation subject to the requirements of
Code section 409A, this Plan shall be administered so that such payments are made in accordance with the requirements of Code section 409A. If an Award is subject to Code section 409A, (i) payments shall only be made in a manner and upon an
event permitted under Code section 409A, (ii) payments to be made upon a termination of employment shall only be made upon a “separation from service” under Code section 409A, and (iii) in no event shall a Participant, directly
or indirectly, designate the calendar year in which a payment is made except in accordance with Code section 409A. Any Award under the Plan that is subject to Code section 409A and that is to be paid to a key employee (as defined below) upon
separation from service shall be administered so that any payment with respect to such Award shall be postponed for six months following the date of the Participant’s separation from service, if required by Code section 409A. If a payment is
delayed pursuant to Code section 409A, the payment shall be paid within 30 days after the end of the six-month period. If the Participant dies during such six-month period, any postponed amounts shall be paid within 90 days of the Participant’s
death. The determination of key employees, including the number and identity of persons considered key employees and the identification date, shall be made by the Committee or its delegate each year in accordance with Code section 416(i) and the
“specified employee” requirements of Code section 409A. Notwithstanding anything to the contrary in this Plan, each Participant shall be solely responsible for the tax consequences of Awards under this Plan, and in no event shall the
Company nor any other Employer have any responsibility or liability if any Award does not meet the applicable requirements of Code section 409A. Although the Company intends to administer the Plan to prevent taxation under Code section 409A,
the Company does not represent nor warrant that the Plan or any Award complies with any provision of federal, state, local or other tax law. 

(c) No Assignment. A Participant’s right and interest under the Plan may not be assigned or transferred and any attempted
assignment or transfer shall be null and void and shall extinguish, in the Company’s sole discretion, the Employer’s obligation under the Plan to pay Awards with respect to the Participant.  

(d) Unfunded Plan. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund, or
to make any other segregation of assets, to assure payment of Awards.  
 (e) Company Policies. As a condition of
participation in the Plan, each Participant agrees to be subject to any compensation, clawback and recoupment policies that may be applicable to the Participant as an Employee of the Employer, as in effect from time to time and as approved by the
Board or a duly authorized committee thereof, whether or not approved before or after the effective date of the Plan.  
 (f)
Stockholder Approval. Notwithstanding any provision of the Plan to the contrary, Awards designated as “qualified performance-based compensation,” if made prior to stockholder 

  
 8 

 
approval of the material terms of the performance goals under the Plan at the Company’s 2015 annual stockholders’ meeting, will be made contingent upon, and subject to, stockholder
approval of the material terms of the performance goals under the Plan at the Company’s 2015 annual stockholders’ meeting. 

(g) Withholding Taxes. The Employer shall have the right to deduct from actual Awards paid any taxes or other amounts required
by law to be withheld.  
 (h) Compliance with 162(m). It is the intent of the Company that the Plan and Awards under
the Plan designated as “qualified performance-based compensation” comply with the applicable provisions of Code section 162(m). To the extent that any legal requirement of Code section 162(m) as set forth in the Plan ceases to be
required under Code section 162(m), that Plan provision shall cease to apply. Further, with respect to Awards intended to qualify as “qualified performance-based compensation, terms used in the Plan shall be interpreted in a manner
consistent with Code section 162(m) and regulations thereunder (including Treasury Regulation section 1.162-27).  
 (i)
Governing Law. The validity, construction, interpretation and effect of the Plan shall exclusively be governed by and determined in accordance with the law of the State of Delaware. 

  
 9

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