Document:

EXHIBIT 10.10

 

	Cerep	P 1/5

Service Agreement

This Service Agreement (“Agreement”)
is made by and between:

Canterbury Laboratories, LLC with
an address 513 Lookout Loop, Eastsound, WA 98245 USA (“CLIENT”)

and

CEREP, having a place of business
at le Bois L’Eveque - BP 1 - 86600 Celle L’Evescault, France (“CEREP”)

For the purpose of this Agreement “CEREP”
shall mean CEREP SA and its wholly owned subsidiaries.

Preamble. This Agreement confirms
the terms and conditions under which CLIENT will disclose to CEREP proprietary or confidential information (“CLIENT INFORMATION”)
or materials or samples (“CLIENT MATERIAL”) and under which CEREP will perform any pharmacological and pharmaceutical
research services described in CEREP’s catalogues, web site or other sales materials, or any other research services that
the Parties may agree to submit to the terms of the present Agreement (hereinafter referred to as “SCIENTIFIC SERVICES”).

1.                 
CEREP agrees to carry out SCIENTIFIC SERVICES requested by CLIENT in connection with CLIENT MATERIAL or CLIENT INFORMATION
that CLIENT may provide to CEREP. CEREP will indicate to CLIENT within two weeks of receiving CLIENT’s written request, (i)
the list of assays and the financial terms for the SCIENTIFIC SERVICES to be performed, and (ii) the time schedule for completion
of said SCIENTIFIC SERVICES, by providing CLIENT with a Quotation (“Quotation”). If acceptable to both Parties and
except as otherwise mentioned in writing, each Quotation will be considered as part of this Agreement.

2.                 
The SCIENTIFIC SERVICES described to date in CEREP’s catalogue, web site or other sales materials may be subject to
changes or may be suppressed. To the best of CEREP’s knowledge, CEREP is entitled to perform the SCIENTIFIC SERVICES without
infringing any issued patents in the country where the SCIENTIFIC SERVICES are performed. Notwithstanding the foregoing, in no
event will CEREP be held liable for not being able to perform any SCIENTIFIC SERVICES requested by CLIENT.

3.                 
In carrying out the SCIENTIFIC SERVICES, CEREP will take all necessary steps and make reasonable efforts to ensure that
the results obtained are scientifically accurate and valid according to the standards presently accepted in the relevant field.

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4.                 
The results of the SCIENTIFIC SERVICES will be reported in writing to CLIENT promptly upon their completion (“Results”).
Unless otherwise agreed by the Parties in a Quotation, CLIENT shall pay for the SCIENTIFIC SERVICES as follows:

		·	The total amount due for the SCIENTIFIC SERVICES upon receipt of the final report that includes the Results; or

		·	The total amount due for the SCIENTIFIC SERVICES performed upon receipt of an interim report including the Results already
produced should:

		·	additional SCIENTIFIC SERVICES be requested by CLIENT as a follow-up

		·	assay(s) be unavailable

Then the remaining amount for the SCIENTIFIC
SERVICES performed will be paid by CLIENT upon receipt of the final report.

5.                 
Should CLIENT request in writing to have access via the Internet to the data obtained by CEREP as the result of the SCIENTIFIC
SERVICES and other related information as the case may be (‘‘Data”), using “Data Online”, a service
developed by CEREP on its Web site, such access shall be made under the following conditions :

a.                  
CLIENT hereby acknowledges that it has been informed of Data Online’s main operation rules attached hereto as Appendix
1.

b.                 
The Data on Data Online are provided to CLIENT on an “as is”, and “as available” basis.

c.                  
CEREP may at any time and without prior notice to CLIENT interrupt the access to Data Online if it is necessary to maintain
the security of Data Online. CEREP shall not be liable for any direct, indirect, incidental, special, consequential or punitive
damages arising out of CLIENT use of, or inability to use, Data Online.

d.                 
CEREP agrees that CEREP security measures set forth in this Agreement and as hereto attached in Appendix 1 are efficient
and adequate to protect the Data, and that CEREP is fulfilling its confidentiality obligations with regard to the Data pursuant
to this Agreement.

e.                  
CEREP will not accept liability for any errors or omissions in the contents of Data which may arise as a result of Internet
transmission. In no event will CEREP be held liable for any incorrect or lost Data as a result of transmission of the Data as authorized
by CLIENT.

6.                 
In connection with the SCIENTIFIC SERVICES, CEREP may provide, upon CLIENT’s request, interpretation profile services
as described in Appendix 2 to this Agreement. At any time during the term of the present Agreement, CEREP may refuse to provide
interpretation profile services requested by CLIENT.

Report derived from interpretation profile
services (“Interpretation Profile Report”) is generated using BioPrint® database, a database proprietary to CEREP.
BioPrint® data generated by CEREP have been obtained using quality control processes consistent with those used for pharmacological
screening or profiling of CLIENT compounds. BioPrinte data derived from literature have been reported with reasonable care and
accuracy.

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Interpretation Profile Report is generated
using statistical tools and may contain certain errors, omissions or bias usually associated with the use of statistical tools;
therefore CEREP makes no representation and warranty with regards to information contained in the Interpretation Profile Report
and their suitability for a particular purpose.

CEREP does not warrant to CLIENT (i)
that Interpretation Profile Report is patentable in whole or in part and (ii) that the use of such Interpretation Profile Report
does not infringe third party’s rights.

7.                 
If necessary for the performance of the SCIENTIFIC SERVICES, CLIENT will transfer to CEREP the sufficient or requested quantities
of CLIENT MATERIAL involved in the SCIENTIFIC SERVICES and, if deemed necessary, will provide all pertinent information regarding
the solubility, stability and/or any other information regarding CLIENT MATERIAL. CEREP will be responsible for and bear the expenses
of obtaining any other chemicals, materials, equipment, animals and facilities needed to conduct the SCIENTIFIC SERVICES.

8.                 
In return for performance of the SCIENTIFIC SERVICES, CLIENT shall pay CEREP a certain fee indicated in the corresponding
Quotation.

9.                 
CLIENT MATERIAL supplied to CEREP by CLIENT will be considered as CLIENT’s confidential information and will not be
distributed by CEREP to any third party and will remain proprietary to CLIENT. The remaining quantity of CLIENT MATERIAL will be
returned to CLIENT upon written request of CLIENT and will not be used by CEREP except as agreed by CLIENT. CEREP agrees not to
perform any physical, chemical or biological analysis, other than those listed in the Quotation provided to CLIENT, nor to attempt
any determination of the structure of CLIENT MATERIAL (when such CLIENT MATERIAL refers to samples). Notwithstanding the foregoing,
CEREP may receive from CLIENT or itself determine the structure of said CLIENT MATERIAL when such determination is strictly necessary
for the performance of the SCIENTIFIC SERVICES, as stated in the Quotation and agreed by CLIENT. Should CLIENT MATERIAL be shipped
upon request of CLIENT, such shipping will be made at CLIENT’s sole risk and expense, said expense being mentioned in the
Quotation.

10.             
CLIENT INFORMATION disclosed by CLIENT to CEREP, as defined in the preamble of the present Agreement, the results of the
SCIENTIFIC SERVICES and any written report prepared by CEREP for CLIENT (hereafter the “CONFIDENTIAL INFORMATION”),
are considered to be confidential and proprietary to CLIENT. CEREP agrees to hold such CONFIDENTIAL INFORMATION in strict confidence
and not to disclose it to third parties whether orally, in writing or by way of samples without CLIENT’s prior written consent
for a period of five (5) years from the date of the disclosure of said CONFIDENTIAL INFORMATION. Furthermore, CEREP shall not use
the CONFIDENTIAL INFORMATION for any purpose other than as recited herein and shall take all necessary and reasonable steps to
assure that the CONFIDENTIAL INFORMATION is maintained in confidence. However, CLIENT agrees that CEREP may disclose solely the
existence of the engagement of CEREP by CLIENT in normal customer lists prepared by CEREP for general marketing purposes. The obligations
of confidentiality and non-use shall apply to each of CEREP’s employees who have access to the CONFIDENTIAL INFORMATION.
At the request of CLIENT, CEREP shall destroy all copies of documents containing the CONFIDENTIAL INFORMATION in the possession
of CEREP, except that CEREP may retain one (1) copy of such CONFIDENTIAL INFORMATION in its confidential files, solely for record
purposes as a mean of determining any continuing obligations under this Agreement. Except as otherwise agreed in writing by the
Parties, CEREP will retain a copy of reports and experimental records containing experimental descriptions and data generated from
this Agreement for a period of five (5) years from their generation. After this time and on request by CLIENT, CEREP shall provide
to CLIENT all experimental records and reports obtained from the work performed under the terms of this Agreement. Should these
files not be requested by CLIENT six months after the expiration of the five year period above mentioned, CEREP will be entitled
to destroy them.

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11.             
All ideas, inventions, data conceived or obtained during the performance of the SCIENTIFIC SERVICES under the terms of this
Agreement will be the exclusive property of CLIENT and are to be formally assigned to CLIENT, whether or not patentable, except
as otherwise expressly agreed in writing by CLIENT and CEREP. CEREP shall, and shall cause its employees to, (i) execute all documents
and perform all acts deemed reasonably necessary by CLIENT to evidence CLIENT’s ownership of the intellectual property and
(ii) assist CLIENT in preparing, prosecuting, obtaining, registering, maintaining, defending and enforcing, at CLIENT’s sole
expense, discretion and exclusive control, all patents and any foreign equivalents thereof, copyrights, trade secret rights and
other proprietary rights. Notwithstanding the foregoing, cLIENT agrees that CEREP’s core technologies shall remain the sole
property of CEREP, and that any and all improvements to CEREP’s core technologies, whether or not conceived within the performance
of services in connection with this Agreement, shall be the sole property of CEREP. For the purpose of the present Agreement “CEREP’s
core technologies” means all models, programs, methodologies, know-how and general knowledge possessed by CEREP, including
without limitation, all generally accepted accounting and actuarial principles and all interpretations thereof.

12.             
CEREP may supply certain data or experimental procedures to CLIENT that are considered to be confidential and proprietary
to CEREP, as clearly indicated by CEREP. CLIENT agrees to hold such information in strict confidence and not to disclose it to
third parties whether orally, in writing or by any other means without CEREP’s prior written consent for a period of five
(5) years from the date of the disclosure of said information.

13.             
One Party (the “RECEIVING PARTY”) shall have no obligation of confidentiality with respect to any information
disclosed by the other Party (the “DISCLOSING PARTY”) that:

a.                  
is now in the public domain or subsequently enters the public domain without fault or negligence on the part of the RECEIVING
PARTY, its employees, or its affiliates; or

b.                 
can be demonstrated by documentation or other competent proof to have been in the RECEIVING PARTY’s possession prior
to disclosure by the DISCLOSING PARTY; or

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c.                  
is properly received by the RECEIVING PARTY from a third party with a valid legal right to disclose such information and
such third party is not under confidentiality agreement to the DISCLOSING PARTY; or

d.                 
is required to be disclosed pursuant to any order of a court having jurisdiction or any lawful action of a government or
regulatory agency; or

e.                  
the RECEIVING PARTY’s employees who have no knowledge of the DISCLOSING PARTY’s confidential information subsequently
develop such information independently.

14.             
CEREP may supply data or experimental procedures to CLIENT that are not confidential. CEREP agrees that CLIENT shall own
and he free to use all such non-confidential material without incurring any further obligation.

15.             
Indemnification. CLIENT shall defend, indemnify and hold harmless CEREP, its employees, directors and officers, from and
against any and all liability which it may incur, by reason of CLIENT’s use of the results of the SCIENTIFIC SERVICES hereunder
: provided, however, that CEREP shall indemnify CLIENT, its employees, directors and officers for any claims for injuries to persons
or damage which occur on CEREP’s premises or premises under the exclusive, control of CEREP,

16.             
CLIENT acknowledges and agrees that research services provided by CFREP are performed on a non-exclusive basis and, accordingly,
CEREP has the light to perform similar services tor portles other lhan CLIENT, provided that CEREP shall comply with its obligations
of non-disclosure and confidentiality.

17.             
Termination of this Agreement shall not affect any rights or obligations of the Parties which may have accrued prior to
the termination, nor shall it affect the coming into or continuance In force of any provisions of this Agreement which are expressly,
or by implication, intended to come into or continue in force after termination. Notwithstanding the Foregoing, the obligations
of the present Agreement will be suspended in the case of the occurrence of any acts of God or force majeure such as but not limited
to fire, flooding, water damage, storms and lighting, accidents, an act emanating from an administrative authority, war, rioting,
strikes or any other circumstance having a cause beyond the control of one or the other Party, including, without limitation, failure
of suppliers, subcontractors or carriers, and preventing said Party from Fulfilling any obligations of the present Agreement.

18.             
Independent Contractors. It is not the intent of CEREP and CLIENT to form any partnership or joint venture, and nothing
contained herein shall be construed to empower either Party to act as on agent for the other. The Parties agree that each of them
shall, in relation to its obligations hereunder, be acting as an independent contractor.

19.             
Entire Agreement-Amendments. This Agreement constitutes the entire agreement between the Parties with respect to the subject
matters addressed herein. This Agreement may not be amended or modified except by a written agreement signed by both Parties hereto.

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20.             
Validity. The invalidity or unenforceability of any provision of this Agreement shalt not affect the validity or enforceability
of any other provision of this Agreement, each of which shall train in full force and effect.

21.             
Headings. The descriptive headings are inserted for convenience of reference only and are not intended to be part of or
to affect the meaning or interpretation of this Agreement.

22.             
This Agreement shall in all events and tor all purposes be governed by, and construed in accordance with, the law of France,
without regard to any choice of law principle that would dictate the application of the low of another jurisdiction,

23.             
This Agreement shall remain in force and effect for a period ol five (5) years from the last of the two signing dates hereafter.

24.             
This Agreement may be executed in one or more counterparts by the parties by signature of a person hewing authority to bind
the party, each of which when executed and delivered by facsimile, electronic transmission or by mail delivery, will be an original
and all of which shall constitute but one and the some Agreement.

	CEREP	CLIENT
	By:	By: Craig Abolin, PhD
	Title:	Title: Chief Scientific Officer
	Date:	Date:
	Signature	Signature /s/

 

 

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APPENDIX 1

DATA ONLINE’S MAIN OPERATION
RULES

DESCRIPTION

CEREP Data Online is a web-based, secured system to view
study information in real-time and perform safe downloads of data and reports.

ACCESS

		·	CEREP’s Data Online services can be accessed using common Internet browserl and are located at https://www.cerep.fr/Secure

		·	Unique user name and password will be provided via mail, e-mail or fax to CLIENT when accepting a Quotation, thus mandating
CEREP to perform a study. CLIENT will then have online access to the data generated in the scope of the study.

		·	CLIENT may require an “Administrator” account granting access to all the data generated in the scope of all the
studies performed by CEREP for CLIENT. In this case, CEREP will request a written confirmation by fax or e-mail with a list of
person(s) employed by CLIENT, authorised to access such data,

		·	CLIENT is responsible for its user name and password.

Two options are available:

		·	The Real-time data option enables the CLIENT to view study data as they are produced, and also to extract them into MS Excel.

		·	The Final Report option enables the CLIENT to download complete study reports and other related documents as they are produced.

SECURITY / CONFIDENTIALITY

		·	To deliver a high level of trust, Entrust & Digicert authenticate CEREP, enabling end users to verify our site and communicate
via state-of-the-art SSL encryption. Our server supports all browser SSL encryption types (40 bit, 56 bit, 128 bit strong encryption).
All computer operating systems and software are updated immediately upon receipt of the provider’s security bulletin. These
security measures are set forth in order to ensure adequate level of confidentiality to protect CLIENT’s data.

		·	The user name, password and all Data on Data On Line are strongly encrypted depending on the browser used by the end user (i.e.
if the browser supports the highest encryption, it will be automatically used).

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		·	Passwords are not stored in any database; they are owned and encrypted by the operating system security mechanism thus the
CLIENT is the only one to have knowledge of the password and who can change it as wished.

		·	The CLIENT can safely enter his/her password and download files from the secure server before any connection. Furthermore,
for real time option, the data transferred corresponds to codes undecipherable for anyone except the CLIENT.

		·	The network topology to access the Data Online web server is also secured via state-of-the-art network security solutions.
However the CLIENT must be aware of risks inherent to Internet transmissions, which cannot be guaranteed to be fully secured or
error-free as information could be intercepted, corrupted, lost, destroyed, or contain viruses. This is why CEREP will not accept
liability for any errors or omissions in the contents of Data which may arise as a result of Internet transmission.

To experience the power and convenience
of Data Online, use ‘demo’ as login and password.

 

 

 

 

 

 

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APPENDIX 2

DESCRIPTION OF BIOPRINT® SERVICES
DELIVERABLES

Phase A. CLIENT’s compound BioPrint® profile

CEREP will profile CLIENT’s compound
on BioPrint° assays and will provide CLIENT with the report including results of such profile (CLIENT’s compound profiling
data).

Phase B. BloPrint® Analysis

For the purpose of the present section
“BioPrint® Analysis” shall mean interpretation of CLIENT’ s compound profiling data to identify the nearest
neighbors to CLIENT’s compound and associated ADRs (adverse drug reactions).

B.1. Nearest neighbors to CLIENT’s compound

Should interpretation of CLIENT’s
compound profiling data (as described above) be impossible to perform (level of activity, absence of neighbors..), CLIENT will
be informed, and no charges will be associated to the Phase B.

Should a BioPrint® Analysis be performed
as a result of interpretation of CLIENT’s compound profiling data, CLIENT will receive a report containing (the “Phase
B Report”):

		·	the chemical narne and the structure (generic name if available) of the five nearest neighbors to CLIENT’s compound;

		·	the distance between CLIENT’s compound and its five nearest neighbors (Cluster distances). Cluster distances to other
compounds are also included in the report (without the name of such compounds).

B.2. ADR reports

The Phase B Report will also include:

		·	the description of ADRs associated to CEREP assays on which CLIENT’s compound is active Spearman coefficient/ risk ratio
are generated for each ADR);

		·	the description of ADRs of the five nearest neighbors identified.

Phase C. BloPrint® Data

CLIENT may elect to purchase datasets
containing information on neighbors identified in Phase B.

Purchased data will be incorporated into
the Phase B Report.

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Three datasets are available for purchase
(at CLIENT’s sole choice) within the frame of a BioPrint® Analysis:

		·	a BioPrint® Full Profile. (which includes Bioprint0 Pharmaco and BioPrint® ADMETox mentioned below),

		·	BioPrint® Pharmoco (pharmacological data only),

		·	a BioPrint® ADMETox (ADMETox data only).

Purchase of a BioPrint® dataset involves
delivery of:

		·	neighbors profiling data,

		·	ADR report on CLIENT’ s compound and neighbor compounds,

		·	A set of different presentations and figures (giving comparative views on inhibition percentage and IC50s from CLIENT’
s compound and neighbors).

 

 

 

 

 

 

 

 

 

 

 

 

 

    	10Exhibit SJGFormofTrancheANoteforNovember2013Closing

REGISTERED

REGISTERED PPN:  __________
SOUTH JERSEY GAS COMPANY
MEDIUM TERM NOTE, SERIES D, 2013, TRANCHE A

NOTE NO.:  NA2013-[__]

ORIGINAL ISSUE DATE:  NOVEMBER 21, 2013    PRINCIPAL AMOUNT:$[_______]

INTEREST RATE:  4.01%    STATED MATURITY DATE:  NOVEMBER 21, 2030

REDEMPTION TERMS, IF ANY: As described below.       OTHER TERMS: As described below.

SOUTH JERSEY GAS COMPANY, a corporation of the state of New Jersey (the “Company”), for value received hereby promises to pay to [________________] or its registered assigns, the principal sum of [____________] DOLLARS on the Maturity Date set forth above, and to pay interest thereon from the Original Issue Date set forth above or from the most recent date to which interest has been paid or duly provided for, semiannually in arrears on May 21 and November 21 in each year (each, an “Interest Payment Date”), commencing May 21, 2014, at the per annum Interest Rate set forth above, until the principal hereof is paid or made available for payment. No interest shall accrue on or after the Maturity Date so long as the principal amount of this Note is paid in full on the Maturity Date.  The interest so payable and punctually paid or duly provided for on any such Interest Payment Date will, as provided in the Indenture (as defined on the reverse hereof), be paid to the Person in whose name this Note is registered at the close of business on the Regular Record Date for such interest, which shall be the May 6 or November 6, as the case may be, next preceding such Interest Payment Date; provided that interest payable on the Maturity Date set forth above or, if applicable, upon redemption or acceleration, shall be payable to the Person to whom principal shall be payable. 
Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and shall be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Noteholders not more than 15 days nor less than 10 days prior to such Special Record Date.  Principal, applicable premium and interest due at the maturity of this Note 

shall be payable in immediately available funds in accordance with the terms of the Note Purchase Agreement (as defined on the reverse hereof).  Interest on this Note (other than interest payable at maturity) shall be paid by wire transfer payable in immediately available funds to the Holder as its name appears on the register as of the close of business on the Regular Record Date to a bank located within the continental United States designated by such Holder in its request or by direct deposit into the account of such Holder designated by such Holder in its request if such account is maintained with the Trustee or any paying agent.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH IN FULL ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH IN FULL AT THIS PLACE. 
Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof directly or through an Authenticating Agent by manual signature of an authorized officer, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.  
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

SOUTH JERSEY GAS COMPANY

By: ___________________________________    
       Stephen H. Clark
       Senior Vice President, Regulatory Affairs  & Treasurer

Attest:__________________________
          Gina Merritt-Epps
          General Counsel and Corporate Secretary

TRUSTEE’S CERTIFICATE  OF AUTHENTICATION
This Note is one of the Notes of the series herein designated, described or provided for in the within‐mentioned Indenture.

THE BANK OF NEW YORK MELLON,
as Trustee

Dated:  November 21, 2013

By:     Authorized Officer

[FORM OF REVERSE OF NOTE]
SOUTH JERSEY GAS COMPANY MEDIUM TERM NOTES, SERIES D, 2013, TRANCHE A
This Note is one of a duly authorized issue of Medium Term Notes, Series D, 2013 (the “Notes of this Series”) of the Company issued and to be issued under an Indenture dated as of October 1, 1998 between the Company and The Bank of New York Mellon, as trustee (the “Trustee,” which term includes any successor Trustee under the Indenture) and indentures supplemental thereto (collectively, the “Indenture”) and pursuant to that certain Note Purchase Agreement dated as of November 21, 2013 among the Company and the purchasers listed therein amended (the “Note Purchase Agreement”).  Under the Indenture, one or more series of notes may be issued and, as used herein, the term “Notes” refers to the Notes of this Series and any other outstanding series of Notes. Reference is hereby made to the Indenture for a more complete statement of the respective rights, limitations of rights, duties and immunities under the Indenture of the Company, the Trustee and the Noteholders and of the terms upon which the Notes are and are to be authenticated and delivered.  Reference is also hereby made to the Note Purchase Agreement for certain rights and obligations of the Holder and the Company referred to in this Note as more fully set forth in the Note Purchase Agreement, the relevant provisions of which are incorporated by reference herein.  The Notes of this Series are limited in aggregate principal amount to $80,000,000, of which up to $50,000,000 aggregate principal amount are designated Medium Term Notes, Series D, 2013, Tranche A, and up to $30,000,000 aggregate principal amount are designated Medium Term Notes, Series D, 2013, Tranche B (“Tranche B Notes”).  This Note is a Tranche A Note.
Prior to the Substitution Date (as hereinafter defined), the Notes will be secured by first mortgage bonds (the “Pledged First Mortgage Bonds”) delivered by the Company to the Trustee for the benefit of the Holders of the Notes, issued under the Indenture of First Mortgage, dated October 1, 1947 from the Company to The Bank of New York Mellon, as successor trustee to Guarantee Bank and Trust Company (“Mortgage Trustee”), as supplemented and amended (the “Mortgage”).  Reference is made to the Mortgage and the Indenture for a description of the rights of the Trustee as holder of the Pledged First Mortgage Bonds, the property mortgaged and pledged under the Mortgage, the rights of the Company and of the Mortgage Trustee in respect thereof, the duties and immunities of the Mortgage Trustee, the terms and conditions upon which the Pledged First Mortgage Bonds are secured and the circumstances under which additional first mortgage bonds may be issued. 
FROM AND AFTER SUCH TIME AS ALL FIRST MORTGAGE BONDS (OTHER THAN PLEDGED FIRST MORTGAGE BONDS) ISSUED UNDER THE MORTGAGE HAVE BEEN RETIRED THROUGH PAYMENT, REDEMPTION OR OTHERWISE (INCLUDING THOSE 

FIRST MORTGAGE BONDS THE PAYMENT FOR WHICH HAS BEEN PROVIDED FOR IN ACCORDANCE WITH THE MORTGAGE) AT, BEFORE OR AFTER THE MATURITY THEREOF (THE “SUBSTITUTION DATE”), THE PLEDGED FIRST MORTGAGE BONDS SHALL CEASE TO SECURE THE NOTES IN ANY MANNER, AND THE NOTES OF THIS SERIES WILL BE SECURED BY FIRST MORTGAGE BONDS ISSUED UNDER AN INDENTURE OTHER THAN THE MORTGAGE IN ACCORDANCE WITH THE TERMS OF THE NOTE PURCHASE AGREEMENT.  IN CERTAIN CIRCUMSTANCES PRIOR TO THE SUBSTITUTION DATE AS PROVIDED IN THE INDENTURE, THE COMPANY IS PERMITTED TO REDUCE THE AGGREGATE PRINCIPAL AMOUNT OF A SERIES OF PLEDGED FIRST MORTGAGE BONDS HELD BY THE TRUSTEE, BUT IN NO EVENT PRIOR TO THE SUBSTITUTION DATE TO AN AMOUNT LESS THAN THE AGGREGATE OUTSTANDING PRINCIPAL AMOUNT OF THE RELATED SERIES OF NOTES INITIALLY ISSUED CONTEMPORANEOUSLY WITH SUCH PLEDGED FIRST MORTGAGE BONDS. 
The Company will make required prepayments of principal on the dates and in the amounts specified in the Note Purchase Agreement.  This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.
If an Event of Default, as defined in the Note Purchase Agreement, shall occur and be continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.
Interest payments for this Note shall be computed and paid on the basis of a 360‐day year of twelve 30‐day months.  Anything in the Note Purchase Agreement or the Indenture to the contrary notwithstanding (but without limiting the requirement in Section 8.4 of the Note Purchase Agreement that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment), any payment of principal of or Make-Whole Amount or interest on this Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of this Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day. 
The Company, at its option, and subject to the terms and conditions provided in the Indenture, will be discharged from any and all obligations in respect of the Notes of this Series (except for certain obligations as specifically set forth in the Indenture) if the Company deposits with the Trustee 

money, U.S. Government Obligations which through the payment of interest thereon and principal thereof in accordance with their terms will provide money, or a combination of money and U.S. Government Obligations, in any event in an amount sufficient, without reinvestment, as certified by an independent public accounting firm of national reputation in a written certification delivered to the Trustee, to pay at maturity or the applicable redemption date (provided that notice of redemption shall have been duly given or irrevocable provision satisfactory to the Trustee shall have been duly made for the giving of any notice of redemption) all outstanding Notes of this Series, including principal and any premium and interest due or to become due to such date of maturity, as the case may be.  
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modifications of the rights and obligations of the Company and the rights of the Noteholders under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the outstanding Notes affected by such amendment or modifications.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange therefor in lieu thereof whether or not notation of such consent or waiver is made upon the Note.  
If any Default or Event of Default has occurred and is continuing, and irrespective of whether this Note has become or has been declared immediately due and payable under the Note Purchase Agreement, the Holder of this Note at the time outstanding may proceed to protect and enforce the rights of such Holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained in the Note Purchase Agreement or in this Note, or for an injunction against a violation of any of the terms thereof or hereof, or in aid of the exercise of any power granted thereby or hereby or by law or otherwise.  
No reference herein to the Indenture and to provisions of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Note as prescribed herein or in the Indenture.  
As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Note register.  Upon surrender of this Note for registration or transfer at the corporate trust office of the Trustee or such other office or agency as may be designated by the Company in the city and state of New York, endorsed by or accompanied by a written instrument of transfer in form satisfactory to the Company and the Note registrar, duly executed by the Holder hereof or the attorney in fact of such Holder duly authorized in writing, one or more new Notes of like tenor and of authorized denominations and for the same aggregate principal amount will be issued to the designated transferee or transferees. 

The Notes of this Series are issuable only in registered form, without coupons, in denominations of $1,000 and any integral multiple thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of like tenor and of a different authorized denomination, as requested by the Holder surrendering the same. 
No service charge shall be made for any such registration of transfer or exchange but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner thereof for all purposes, whether or not this Note is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. The Indenture and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York. 
All capitalized terms used but not otherwise defined in this Note shall have the respective meanings assigned to them in the Indenture; provided, however, that the terms “Default” and “Event of Default” shall have the meanings assigned to them in the Note Purchase Agreement.  
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:  TEN COM - as tenants in common UNIF GIFT MIN ACT - ________________ Custodian ________________ (Cust) (Minor)  TEN ENT - as tenants by the entireties Under Uniform Gifts to Minors JT TEN - as joint tenants with right of survivorship and not as tenants in common.
Additional abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED the undersigned hereby sell(s),  assign(s) and transfer(s) unto  PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE ___________________________________________. 
Please print or type name and address including postal zip code of assignee the within note and all rights thereunder, hereby irrevocably constituting and appointing attorney to transfer said note on the books of the Company, with full power of substitution in the premises. 

		
	Dated:_____________________ 
	         

NOTICE:  The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatever.

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