POTOMAC ELECTRIC POWER CO
EXECUTIVE DEFERRAL AGREEMENT
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<DESCRIPTION>EXECUTIVE DEFERRAL AGREEMENT
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<TITLE>Exhibit 10-5</TITLE>
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<B><FONT FACE="Arial" SIZE=4 COLOR="#0000ff"><P ALIGN="CENTER">Pepco Holdings, Inc.</B></FONT></TD>
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<FONT FACE="Arial" SIZE=4><P ALIGN="CENTER">Executive and Director Deferred Compensation Plan</FONT></TD>
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<B><U><FONT FACE="Arial" SIZE=4 COLOR="#0000ff"><P ALIGN="CENTER">EXECUTIVE DEFERRAL AGREEMENT</B></U></FONT></TD>
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<B><FONT FACE="Arial" SIZE=3><P>Name:&nbsp;&nbsp;________________________________________________ </B>(the "Participant")<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Last&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Middle Initial</FONT></TD>
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<B><FONT FACE="Arial" SIZE=3><P>Social Security Number:&nbsp;&nbsp;_</B>____ - ____ - ________</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>A.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>This Deferral Agreement (the "Agreement") has been made as of this _____ day of  ______, _____ between the Executive and Pepco Holdings, Inc. (the "Company")</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>I elect to participate in the Pepco Holdings, Inc. Executive and Director Deferred Compensation Plan (the"Plan") with respect to the _____-_____ time period. I understand the general provisions of the Plan.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>B.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>Deferral Elections for the period July 1, _____ through June 30, _____.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>(i)</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>I hereby elect to defer the following percentage of my salary:&nbsp;&nbsp;________%</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>(ii)</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>I understand that due to current tax limitations, I may not be able to contribute a full 6% of my compensation into the Savings Plan (the "401(k) Plan"). I hereby elect to defer any shortfall between the full 6% of my compensation and the maximum amount which can be contributed on my behalf into the 401(k) Plan:<BR>
______ Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;______ No</FONT></TD>
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<B><FONT FACE="Arial" SIZE=3><P>Payment Instructions</B></FONT></TD>
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<B><FONT FACE="Arial" SIZE=3><P>I elect </B>to have the above-referenced deferred amounts paid to me (check one):</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>(i)</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>____</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>On the date of commencement of benefits under the General Retirement Plan.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>(ii)</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>____</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>On January 31 of the year following commencement of benefits under the General Retirement Plan.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>(iii)</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>____</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>On the first day of the month following my separation from the Company's service.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>(iv)</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>____</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>On January 31 of the calendar year following my separation from the Company's service.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>(v)</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>____</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>On January 31 of the calendar year following my attainment of age ____ or separation from the Company's service.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>(vi)</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>____</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>On January 31 of ________ (Note: The designated year may not be earlier than _____).</FONT></TD>
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<B><FONT FACE="Arial" SIZE=2 COLOR="#0000ff"><P ALIGN="CENTER">________________________________________________________________________________________________________</B></FONT></TD>
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<B><FONT FACE="Arial" SIZE=3><P>Manner of Payment</B></FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>Benefits deferred under the Plan shall be paid to me (or, if applicable, my beneficiary) in the following manner (check one):</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>____</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>In a lump sum.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>____</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>In annual installments over ___________ (two through fifteen) years.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>____</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>In monthly installments over ______________ (twenty-four through one hundred and eighty) months.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>C.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>I further recognize that nothing contained herein or in the Plan shall be construed as a contract of employment between me and the Company, as a right to continue employment or as a limitation of the Company's right of discharge.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>D.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>I understand that if I die during active service, my beneficiary shall receive an amount equal to two times my account balance resulting from deferrals under this Agreement.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>IN WITNESS WHEREOF, the parties hereto have entered into this Agreement on the day and year stated below.</FONT></TD>
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<B><FONT FACE="Arial" SIZE=3><P>Pepco Holdings, Inc.</B></FONT></TD>
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<B><FONT FACE="Arial" SIZE=3><P>EXECUTIVE</B></FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>By:&nbsp;&nbsp;____________________________</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>________________________________<BR>
Signature</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>Title:&nbsp;&nbsp;___________________________</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>______________________________________________________________________</FONT></TD>
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<B><FONT FACE="Arial" SIZE=3><P>DECLINE PARTICIPATION</B></FONT></TD>
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<B><FONT FACE="Arial" SIZE=3><P>I do not wish to participate </B>in the _____-_____ Pepco Holdings, Inc. Executive and Director Deferred Compensation Plan.</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>______________________________<BR>
Date</FONT></TD>
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<FONT FACE="Arial" SIZE=3><P>________________________________<BR>
Signature</FONT></TD>
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<B><FONT FACE="Arial" SIZE=3 COLOR="#0000ff"><P ALIGN="CENTER">________________________________________________________________________________________________</B></FONT></TD>
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