Document:

Exhibit
4.1

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

Principal
Amount: $75,000

Date:
February 19, 2018

 

FORM
OF DEMAND CONVERTIBLE PROMISSORY NOTE

 

PositiveID
Corp., (hereinafter called the “Company”), hereby promises to pay to the order of Apollo Management Group,
LLC., or its registered assigns (the “Holder”) the sum of up to $75,000 on the Maturity Date (as defined below),
together with any interest as set forth herein, and to pay interest on the unpaid principal balance hereof at the rate of Twelve
percent (12%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes
due and payable, whether at maturity or upon acceleration or by prepayment or otherwise.

 

This
Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Interest shall commence accruing
on the date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed,
notwithstanding the first year’s interest is guaranteed. All payments due hereunder (to the extent not converted into common
stock) shall be made in lawful money of the United States of America. Following any Event of Default, interest shall accrue at
the lesser of Twenty Percent (24%) per annum or the maximum interest permitted by Law.

 

All
payments shall be made at such address as the Holder shall hereafter give to the Company by written notice made in accordance
with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is
not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case of any interest
payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken
into account for purposes of determining the amount of interest due on such date. As used in this Note, the term “business
day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York
are authorized or required by law or executive order to remain closed. Each capitalized term used herein, and not otherwise defined,
shall have the meaning ascribed thereto in the supporting documents of same date (attached hereto).

 

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This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

The
following terms shall apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1
Conversion Right. The Holder shall have the right and at any time from the execution of this Note to convert all or any
part of the outstanding and unpaid principal amount of this Note into fully paid and non- assessable shares of Common Stock, as
such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Company into which such
Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined
as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled
to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number
of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be
deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion
of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained
herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to
which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of
more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and Regulations 13D-G thereunder. The number of shares of Common Stock to be issued upon each conversion
of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then
in effect on the date specified in the notice of conversion, (the “Notice of Conversion”), delivered to the Company
by the Holder in accordance with the Sections below; provided that the Notice of Conversion is submitted by facsimile or e-mail
(or by other means resulting in, or reasonably expected to result in, notice) to the Company before 6:00 p.m., New York, New York
time on such conversion date (the “Conversion Date”). Notwithstanding the foregoing, the term “4.99%”
above shall be replaced with “9.99%” following any Event of Default if the Holder, in its sole discretion and in writing,
elects to demand the replacement. If the term “4.99%” is replaced with “9.99%” pursuant to the preceding
sentence, such increase to “9.99%” shall remain at 9.99% until decreased by the Holder in writing.

 

The
number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion
Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion,
(the “Notice of Conversion”), delivered to the Company by the Holder in accordance with the Sections below. The term
“Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this
Note to be converted in such conversion plus (2) at the Company’s option, accrued and unpaid interest, if any, on
such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Company’s
option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4)
at the Holder’s option, any amounts owed to the Holder.

 

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1.2
Conversion Price.

 

(a)
Calculation of Conversion Price. Holder, at its discretion, shall have the right to convert this Note in its entirety or
in part(s) into common stock of the Company valued at a thirty-seven and a half percent (37.5%) discount off of the lowest price
for the Company’s common stock during the fifteen (15) trading days immediately preceding a conversion date, as reported
by Quotestream Media.

 

If
at any time after the execution of this Note, the Company experiences a “DTC Chill,” the Conversion Price Discount
shall be increased by five percent (5%). If at any time following the execution of this Note, the Company becomes ineligible to
participate in the DTC’s “DWAC” system, the Conversion Price Discount will be increased by five percent (5%).
Following any Event of Default, the Conversion Price discount shall be increased to forty-five percent (45%).

 

1.3
Authorized Shares. The Company covenants that during the period the conversion right exists the Company will reserve from
its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note. The Company is required at all times to have authorized and reserved three
times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Notes
in effect from time to time)(the “Reserved Amount”). The Reserved Amount shall be increased from time to time in accordance
with the Company’s obligations.

 

The
Company represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition,
if the Company shall issue any securities or make any change to its capital structure which would change the number of shares
of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Company shall at the same
time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved,
free from preemptive rights, for conversion of the outstanding Notes.

 

The
Company (i) acknowledges that it will irrevocably instruct its transfer agent to issue certificates for the Common
Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to
its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance with the terms and conditions of this Note.

 

If,
at any time the Company does not maintain the Reserved Amount it will be considered an Event of Default as defined in this Note.

 

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1.4
Method of Conversion.

 

(a)
Mechanics of Conversion. This Note may be converted by the Holder in whole or in part at any time from time to time after
the Issue Date, by (A) submitting to the Company a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication
dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time).

 

(b)
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless
the entire unpaid principal amount of this Note is so converted. The Holder and the Company shall maintain records showing the
principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the
Holder and the Company, so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute
or discrepancy, such records of the Holder shall, prima facie, be controlling and determinative in the absence of manifest
error. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this
paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented
by this Note may be less than the amount stated on the face hereof.

 

(c)
Payment of Taxes. The Company shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other
than that of the Holder (or in street name), and the Company shall not be required to issue or deliver any such shares or other
securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such
shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Company the amount
of any such tax or shall have established to the satisfaction of the Company that such tax has been paid.

 

(d)
Delivery of Common Stock Upon Conversion. Upon receipt by the Company from the Holder of a facsimile transmission or e-mail
(or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in
this Section, the Company shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates
for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”)
(and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with
the terms hereof.

 

Within
Five (5) business days of having received common stock pursuant to a Notice of Conversion and prior to having traded any shares
from that specific conversion, Holder may elect to rescind the Notice of Conversion and return the shares, at Holder’s expense,
to the Company’s Transfer Agent. In the event of such rescission, the principal amount outstanding under this Note shall
be adjusted to include the Conversion Amount which was deducted from the Note as part of the rescinded Notice of Conversion.

 

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(e)
Obligation of Company to Deliver Common Stock. Upon receipt by the Company of a Notice of Conversion, the Holder shall
be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the
amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Company defaults
on its obligations under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith
terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such
conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Company’s obligation to issue
and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by
the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against
any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Company to
the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the
Holder of any obligation to the Company, and irrespective of any other circumstance which might otherwise limit such obligation
of the Company to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall
be the Conversion Date so long as the Notice of Conversion is received by the Company before 6:00 p.m., New York, New York time,
on such date.

 

(f)
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Company is participating in the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained
in Section 1.1 and in this Section 1.4, the Company shall use its best efforts to cause its transfer agent to electronically transmit
the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Broker with DTC through its
Deposit Withdrawal Agent Commission (“DWAC”) system.

 

(g)
Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon
conversion of this Note is not delivered by the Deadline the Company shall pay to the Holder $2,000 per day in cash, for each
day beyond the Deadline that the Company fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the fifth
day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Company
by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note,
in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall
be convertible into Common Stock in accordance with the terms of this Note. The Company agrees that the right to convert is a
valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right
are difficult if not impossible to qualify.

 

Accordingly
the parties acknowledge that the liquidated damages provision contained in this Section are justified. Any delay or failure of
performance by the Company hereunder shall be excused if and to the extent caused by Force Majeure. For purposes of this agreement,
Force Majeure shall mean a cause or event that is not reasonably foreseeable and not caused by the Company, including acts of
God, fires, floods, explosions, riots wars, hurricanes, etc.

 

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1.5
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred
unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Company or its transfer
agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred
pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act
(or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in
Rule 144) of the Company who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who
is an Accredited Investor. Except as otherwise provided herein (and subject to the removal provisions set forth below), until
such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise
may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then
be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included
in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption
that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The
legend set forth above shall be removed and the Company shall issue to the Holder a new certificate therefore free of any transfer
legend if (i) the Company or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made
without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or
(ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder
under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does not
accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration,
such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to this note.

 

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1.6
Effect of Certain Events.

 

(a)
Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially
all of the assets of the Company, the effectuation by the Company of a transaction or series of related transactions in which
more than 50% of the voting power of the Company is disposed of, or the consolidation, merger or other business combination of
the Company with or into any other Person (as defined below) or Persons when the Company is not the survivor shall either: (i)
be deemed to be an Event of Default (as defined in Article III) pursuant to which the Company shall be required to pay to the
Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article
III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual, corporation, limited
liability company, partnership, association, trust or other entity or organization.

 

(b)
Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion
of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other
similar event, as a result of which shares of Common Stock of the Company shall be changed into the same or a different number
of shares of another class or classes of stock or securities of the Company or another entity, or in case of any sale or conveyance
of all or substantially all of the assets of the Company other than in connection with a plan of complete liquidation of the Company,
then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon
the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion,
such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted
in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such
case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that
the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities
or assets thereafter deliverable upon the conversion hereof. The Company shall not affect any transaction described in this Section
1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least
fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no
such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other
similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor
or acquiring entity (if not the Company) assumes by written instrument the obligations of this Section 1.6(b). The above provisions
shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

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(c)
Adjustment Due to Distribution. If the Company shall declare or make any distribution of its assets (or rights to acquire
its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any
dividend or distribution to the Company’s shareholders in cash or shares (or rights to acquire shares) of capital stock
of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion
of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such
assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had
such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to
such Distribution.

 

(d)
Adjustment Due to Dilutive Issuance. If, at any time when any Notes are issued and outstanding, the Borrower issues or
sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock in connection
with a financing transaction based on a variable price formula (the “Alternative Variable Price Formula”) that is
more favorable to the investor in such financing transaction than the formula for calculating the Conversion Price in effect on
the date of such issuance (or deemed issuance) of such shares of Common Stock (a “Dilutive Issuance”), then immediately
upon the Dilutive Issuance, the formula for the Conversion Price will be adjusted to match the Alternative Variable Price Formula.
If it is unclear whether the Alternative Variable Price Formula is better or worse, then Holder, in its sole discretion, may elect
at the time of such issuance whether to switch to the Alternative Variable Price Formula or not.

 

(e)
Purchase Rights. If, at any time when any Notes are issued and outstanding, the Company issues any convertible securities
or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata to the record
holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares
of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained herein)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such
record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of
such Purchase Rights.

 

(f)
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the
events described in this Section 1.6, the Company, at its expense, shall promptly compute such adjustment or readjustment and
prepare and furnish to the Holder of a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of the Holder, furnish
to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in
effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time
would be received upon conversion of the Note.

 

1.7
Not Used.

 

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1.8
Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than
the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved
Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights as a
Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for
such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because
of a failure by the Company to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received
certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect
to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a
holder of Common Stock by so notifying the Company) the Holder shall regain the rights of a Holder of this Note with respect to
such unconverted portions of this Note and the Company shall, as soon as practicable, return such unconverted Note to the Holder
or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted.
In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive
Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent
Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance
with Section 1.3) for the Company’s failure to convert this Note.

 

1.9
Demand Payment. Holder can demand payment to be made on any day after 90 calendar days from the issuance date at 105.4%
of the Principal and Interest Outstanding. To exercise the demand right the Holder must give 5 days’ written notice to the
Company. Written notice may be U.S. Mail or electronic mail.

 

ARTICLE
II. CERTAIN COVENANTS

 

2.1
Distributions on Capital Stock. So long as the Company shall have any obligation under this Note, the Company shall not
without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution
(whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely
in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment
or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which
is approved by a majority of the Company’s disinterested directors.

 

2.2
Restriction on Stock Repurchases. So long as the Company shall have any obligation under this Note, the Company shall not
without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property
or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the
Company or any warrants, rights or options to purchase or acquire any such shares.

 

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2.3
Borrowings. So long as the Company shall have any obligation under this Note, the Company shall not, without providing
the Holder with the right of first refusal, create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise
become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of
negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except (a) borrowings in
existence or committed on the date hereof and of which the Issuer has informed Holder in writing prior to the date hereof, (b)
indebtedness to trade creditors or financial institutions incurred in the ordinary course of business or (c) borrowings, the proceeds
of which shall be used to repay this Note. Holder shall have 3 business days from receipt of the terms of any potential borrowings
to confirm if they want to provide such financing on similar terms.

 

2.4
Sale of Assets. So long as the Company shall have any obligation under this Note, the Company shall not, without the Holder’s
written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business.
Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

2.5
Advances and Loans. So long as the Company shall have any obligation under this Note, the Company shall not, without the
Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including,
without limitation, officers, directors, employees, subsidiaries and affiliates of the Company, except loans, credits or advances
(a) in existence or committed on the date hereof and which the Company has informed Holder in writing prior to the date hereof,
(b) made in the ordinary course of business or (c) not in excess of $50,000.

 

ARTICLE
III. EVENTS OF DEFAULT

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1
Failure to Pay Principal or Interest. The Company fails to pay the principal hereof or interest thereon when due on this
Note, whether at maturity, upon acceleration or otherwise.

 

3.2
Conversion and the Shares. The Company fails to issue shares of Common Stock to the Holder (or announces or threatens in
writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in
accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in
certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to
this Note as and when required by this Note, the Company directs its transfer agent not to transfer or delays, impairs, and/or
hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of
Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note,
or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing)
any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of
Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or
makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph)
and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall
not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an
obligation of the Company to remain current in its obligations to its transfer agent. It shall be an event of default of this
Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Company to its transfer agent.
If at the option of the Holder, the Holder advances any funds to the Company’s transfer agent in order to process a conversion,
such advanced funds shall be paid by the Company to the Holder within forty eight (48) hours of a demand from the Holder.

 

    	10

    	 

    

 

3.3
Breach of Covenants. The Company breaches any covenant or other term or condition contained in this Note and any collateral
documents.

 

3.4
Breach of Representations and Warranties. Any representation or warranty of the Company made herein or in any agreement,
statement or certificate given in

writing
pursuant hereto or in connection herewith, shall be false or misleading in any material respect when made and the breach of which
has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note.

 

3.5
Receiver or Trustee. The Company or any subsidiary of the Company shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6
Judgments. Any money judgment, writ or similar process shall be entered or filed against the Company or any subsidiary
of the Company or any of its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed
for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

3.7
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary,
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company or any
subsidiary of the Company.

 

3.8
Delisting of Common Stock. The Company shall fail to maintain, in good standing, the listing of the Common Stock on the
OTCQB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market or the New York Stock Exchange.

 

3.9
Failure to Comply with the Exchange Act. The Company shall fail to comply, in a timely manner, with the reporting requirements
of the Exchange Act; and/or the Company shall cease to be subject to the reporting requirements of the Exchange Act.

 

3.10
Liquidation. Any dissolution, liquidation, or winding up of Company or any substantial portion of its business.

 

    	11

    	 

    

 

3.11
Cessation of Operations. Any cessation of operations by Company or Company admits it is otherwise generally unable to pay
its debts as such debts become due, provided, however, that any disclosure of the Company’s ability to continue as a “going
concern” shall not be an admission that the Company cannot pay its debts as they become due.

 

3.12
Maintenance of Assets. The failure by Company to maintain any material intellectual property rights, personal, real property
or other assets which are necessary to conduct its business (whether now or in the future).

 

3.13
Financial Statement Restatement. The restatement of any financial statements filed by the Company with the SEC for any
date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result
of such restatement would, by comparison to the original financial statement, have constituted a material adverse effect on the
rights of the Holder with respect to this Note or supporting documents.

 

3.14
Reverse Splits. The Company effectuates a reverse split of its Common Stock without at least twenty (20) days prior written
notice to the Holder.

 

3.15
Replacement of Transfer Agent. In the event that the Company proposes to replace its transfer agent, the Company fails
to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form
as initially delivered with this Note (including but not limited to the provision to irrevocably reserve shares of Common Stock
in the Reserved Amount) signed by the successor transfer agent to Company and the Company.

 

3.16
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents,
a breach or default by the Company of any covenant or other term or condition contained in any of the Other Agreements, after
the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under
this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights
and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement
or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the
Company, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory
notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this
Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future
debt of Company.

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to
pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable
and the Company shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum
(as defined herein).

 

    	12

    	 

    

 

UPON
THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY
DUE AND PAYABLE AND THE COMPANY SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO:
(Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) 125% (2). Upon the occurrence and during the continuation of any Event
of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due
on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11,
3.12, 3.13, 3.14, and/or 3.15 exercisable through the delivery of written notice to the Company by such Holders (the “Default
Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure
to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately
due and payable and the Company shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to
the greater of (i) 125% times the sum of (w) the then outstanding principal amount of this Note plus (x)
accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment
Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any
amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the
date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default
Sum”) or (ii) the “parity value” of the Default Sum to be prepaid, where parity value means (a) the highest
number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article
I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the “Conversion Date” for purposes
of determining the lowest applicable Conversion Price, unless the Default Event arises as a result of a breach in respect of a
specific Conversion Date in which case such Conversion Date shall be the Conversion Date), multiplied by (b) the highest
Closing Price for the Common Stock during the period beginning on the date of first occurrence of the Event of Default and ending
one day prior to the Mandatory Prepayment Date (the “Default Amount”) and all other amounts payable hereunder shall
immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together
with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise
all other rights and remedies available at law or in equity.

 

If
the Company fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable,
then the Holder shall have the right at any time, so long as the Company remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Company, upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Company equal to the Default Amount divided by the Conversion Price then in
effect.

 

    	13

    	 

    

 

ARTICLE
IV. MISCELLANEOUS

 

4.1
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be:

 

If
to the Company, to:

PositiveID
Corporation

1690
S. Congress Ave., Suite 201

Delray
Beach, FL 33445

 

If
to the Holder:

Apollo
Management Group, LLC

7050
Aloma Avenue,

Winter
Park, FL 30792

 

4.3
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Company and
the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4
Assignability. This Note shall be binding upon the Company and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. Notwithstanding anything in this Note to the contrary, this Note may be pledged
as collateral in connection with a bona fide margin account or other lending arrangement.

 

    	14

    	 

    

 

4.5
Cost of Collection. If default is made in the payment of this Note, the Company shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6
Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Note shall be brought only in the state or federal courts located in the County, City and State of New York. The parties
to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not
assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Holder waive
trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and
costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in
connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

4.7
Certain Amounts. Whenever pursuant to this Note the Company is required to pay an amount in excess of the outstanding principal
amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such
interest, the Company and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note
may be difficult to determine and the amount to be so paid by the Company represents stipulated damages and not a penalty and
is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the sale
of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant
to this Note. The Company and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to
the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of
Common Stock.

 

4.8
Not Used.

 

    	15

    	 

    

 

4.9
Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder
of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Company shall provide the Holder
with prior notification of any meeting of the Company’s shareholders (and copies of proxy materials and other information
sent to shareholders). In the event of any taking by the Company of a record of its shareholders for the purpose of determining
shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or
otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or
any other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled
to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Company or
any proposed liquidation, dissolution or winding up of the Company, the Company shall mail a notice to the Holder, at least twenty
(20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction or event,
whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right
or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event
to the extent known at such time. The Company shall make a public announcement of any event requiring notification to the Holder
hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section 4.9.

 

4.10
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that
the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

    	16

    	 

    

 

IN
WITNESS WHEREOF, Company has caused this Note to be signed in its name by its duly authorized officer:

 

	 	PositiveID
    Corporation
	 	 	                                 
	 	By:	                     
	 	 	 
	 	Print:	 
	 	 
	 	Title/Date:
    ______________________

 

    	17Exhibit 10.1

 

 

TERM LOAN AGREEMENT

 

by and among

 

PACIFIC GAS AND ELECTRIC COMPANY,

as Borrower,

 

the Several Lenders from Time to Time
Parties Hereto,

 

and

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as the Administrative Agent

 

Dated as of February 23, 2018

 

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

and U.S. BANK NATIONAL ASSOCIATION

as Joint Lead Arrangers and

Joint Bookrunners

    	 

    	

    

	SECTION 1. DEFINITIONS	1
	 	 	 	 
	 	1.1	Defined Terms	1
	 	1.2	Other Definitional Provisions and Interpretative Provisions	14
	 	 	 	 
	SECTION 2. AMOUNT AND TERMS OF THE LOANS	15
	 	 	 	 
	 	2.1	Term Loans	15
	 	2.2	Fees	15
	 	2.3	Repayment of Loan; Evidence of Debt	15
	 	2.4	Optional Prepayments	16
	 	2.5	Conversion and Continuation Options	16
	 	2.6	Limitations on Eurodollar Tranches	17
	 	2.7	Interest Rates; Payment Dates and Payments	17
	 	2.8	Computation of Interest and Fees	18
	 	2.9	Inability to Determine Interest Rate	18
	 	2.10	Pro Rata Treatment and Payments; Notes	18
	 	2.11	Change of Law	19
	 	2.12	Taxes	20
	 	2.13	Indemnity	24
	 	2.14	Change of Lending Office	25
	 	 	 	 
	SECTION 3. REPRESENTATIONS AND WARRANTIES	25
	 	 	 	 
	 	3.1	Financial Condition	25
	 	3.2	No Change	25
	 	3.3	Existence; Compliance with Law	25
	 	3.4	Power; Authorization; Enforceable Obligations	25
	 	3.5	No Legal Bar	26
	 	3.6	Litigation	26
	 	3.7	No Default	26
	 	3.8	Taxes	27
	 	3.9	Federal Regulations	27
	 	3.10	ERISA	27
	 	3.11	Investment Company Act; Other Regulations	28
	 	3.12	Use of Proceeds	28
	 	3.13	Environmental Matters	28
	 	3.14	Regulatory Matters	28
	 	3.15	Sanctions	28
	 	 	 	 
	SECTION 4. CONDITIONS TO THE CLOSING DATE	28
	 	 	 	 
	SECTION 5. AFFIRMATIVE COVENANTS	29
	 	 	 	 
	 	5.1	Financial Statements	29
	 	5.2	Certificates; Other Information	30
	 	5.3	Payment of Taxes	30

    	 

    	

    

	 	5.4	Maintenance of Existence; Compliance	30
	 	5.5	Maintenance of Property; Insurance	31
	 	5.6	Inspection of Property; Books and Records; Discussions	31
	 	5.7	Notices	31
	 	5.8	Maintenance of Licenses, etc	32
	 	 	 	 
	SECTION 6. NEGATIVE COVENANTS	32
	 	 	 	 
	 	6.1	Consolidated Capitalization Ratio	32
	 	6.2	Liens	32
	 	6.3	Fundamental Changes	32
	 	 	 	 
	SECTION 7. EVENTS OF DEFAULT	33
	 	 	 	 
	SECTION 8. MISCELLANEOUS	35
	 	 	 	 
	 	8.1	Amendments and Waivers	35
	 	8.2	Notices	36
	 	8.3	No Waiver; Cumulative Remedies	37
	 	8.4	Survival of Representations and Warranties	37
	 	8.5	Payment of Expenses	37
	 	8.6	Successors and Assigns; Participations and Assignments	38
	 	8.7	Adjustments; Set off	41
	 	8.8	Counterparts	42
	 	8.9	Severability	42
	 	8.10	Integration	42
	 	8.11	GOVERNING LAW	42
	 	8.12	Submission To Jurisdiction; Waivers	43
	 	8.13	Acknowledgments	43
	 	8.14	Confidentiality	43
	 	8.15	WAIVER OF JURY TRIAL	44
	 	8.16	USA Patriot Act	44
	 	8.17	Judicial Reference	44
	 	8.18	No Advisory or Fiduciary Responsibility	44
	 	 	 	 
	SECTION 9. ADMINISTRATIVE AGENT	45
	 	 	 	 
	 	9.1	Appointment and Authority	45
	 	9.2	Delegation of Duties	45
	 	9.3	Exculpatory Provisions	46
	 	9.4	Reliance by Administrative Agent	47
	 	9.5	Non-Reliance on Agents and Other Lenders	47
	 	9.6	Indemnification	47
	 	9.7	Administrative Agent in Its Individual Capacity	48
	 	9.8	Successor Administrative Agent	48
	 	9.9	Administrative Agent May File Proofs of Claim	49
	 	9.10	No Other Duties, Etc.	50

    	 

    	

    

EXHIBITS:

		A	Form of Compliance Certificate

		B	Form of Closing Certificate

		C	Form of Assignment and Assumption

		D	Reserved

		E	Forms of U.S. Tax Compliance Certificates

		F	Form of Note

    	 

    	

    

TERM LOAN AGREEMENT

This TERM LOAN AGREEMENT
(this “Agreement”), dated as of February 23, 2018, by and among PACIFIC GAS AND ELECTRIC COMPANY, a California
corporation (the “Borrower”), the several banks and other financial institutions or entities from time to time
parties to this Agreement (the “Lenders”), THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. and U.S. BANK NATIONAL ASSOCIATION,
as joint lead arrangers and joint bookrunners (together and in such capacities, the “Arrangers”), and THE BANK
OF TOKYO-MITSUBISHI UFJ, LTD., as administrative agent (in such capacity, together with any successor thereto, the “Administrative
Agent”).

W I T N E S S E T H:

WHEREAS, the Borrower
has requested the Lenders make available to the Borrower loans on the Closing Date in the aggregate principal amount of $250,000,000
to be used for general corporate purposes; and

WHEREAS, each Lender
is willing to make available to the Borrower such loans upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in
consideration of the foregoing recitals, the mutual promises contained herein and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Borrower and the Lenders hereby agree as follows:

SECTION 1.  DEFINITIONS

1.1 Defined
Terms. As used in this Agreement, the terms listed in this Section 1.1 shall have the respective meanings set forth in
this Section 1.1.

“ABR”
means, for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of (a) the
Base Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% and
(c) the Eurodollar Base Rate for Eurodollar Loans with a one-month Interest Period commencing on such day plus the Applicable Margin
for Eurodollar Loans. For purposes hereof, “Base Rate” shall mean the rate of interest per annum publicly announced
from time to time by the Administrative Agent as its base rate in effect at its principal office in New York City (the Base Rate
not being intended to be the lowest rate of interest charged by the Administrative Agent in connection with extensions of credit
to debtors). Any change in the ABR due to a change in the Base Rate, the Federal Funds Effective Rate or the Eurodollar Base Rate
shall be effective as of the opening of business on the effective day of such change in the Base Rate, the Federal Funds Effective
Rate or the Eurodollar Base Rate, respectively.

“ABR Loans”
means Loans the rate of interest applicable to which is based upon the ABR.

“Administrative
Agent” has the meaning assigned to that term in the introductory paragraph of this Agreement.

    	 1

    	

    

“Affiliate”
means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.

“Agreement”
means this Term Loan Agreement, as the same may from time to time be amended, supplemented or modified.

“Applicable
Margin” means, for any day, (a) with respect to any ABR Loans, the greater of (1) zero and (2) 1.00 percent per annum
less than the Applicable Margin for Eurodollar Loans at such time and (b) with respect to any Eurodollar Loans, 0.60 percent per
annum.

“Arrangers” has the
meaning assigned to that term in the introductory paragraph of this Agreement.

“Assignee” has the
meaning set forth in Section 8.6(b)(i).

“Assignment and Assumption”
means an Assignment and Assumption, substantially in the form of Exhibit C.

“Beneficial
Owner” has the meaning assigned to that term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating
the beneficial ownership of any particular “person” (as that term is used in Sections 13(d) and 14(d) of the Exchange
Act), such “person” will be deemed to have beneficial ownership of all securities that such “person” has
the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable
only upon the occurrence of a subsequent condition. The terms “Beneficially Owns” and “Beneficially
Owned” have correlative meanings.

“Board”
means the Board of Governors of the Federal Reserve System of the United States (or any successor).

“Borrower”
has the meaning assigned to that term in the introductory paragraph of this Agreement.

“Business
Day” means any day other than a Saturday, Sunday or a day on which commercial banks are authorized by law to close in
New York, New York, San Francisco, California or, if different, the city in which the office of the Administrative Agent is located;
provided, that with respect to notices and determinations in connection with, and payments of principal and interest on,
Eurodollar Loans, such day is also a day for trading by and between banks in Dollar deposits in the London interbank eurodollar
market.

“Capital
Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock
of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights
or options to purchase any of the foregoing.

“Change
of Control” means PCG and its Subsidiaries shall at any time not be the Beneficial Owner, directly or indirectly, of
at least 80% of the common stock or 70% of the voting Capital Stock of the Borrower; provided that any such event shall
not constitute a Change

    	 2

    	

    

of Control if, after
giving effect to such event, the Borrower’s senior, unsecured, non credit-enhanced debt ratings shall be at least the higher
of (1) Baa3 from Moody’s and BBB- from S&P and (2) the ratings by such rating agencies of such debt
in effect immediately before the earlier of the occurrence or the public announcement of such event.

“Change
of Law” means the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any
law, rule, regulation, statute, treaty, policy, guideline or directive by any Governmental Authority, (b) any change in any law,
rule, regulation, statute, treaty, policy, guideline or directive or in the application, interpretation, promulgation, implementation,
administration or enforcement thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline
or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything
herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or
directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the
Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United
States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change
of Law”, regardless of the date enacted, adopted or issued.

“Closing
Date” means the date on which the conditions precedent set forth in Section 4 shall have been satisfied or waived by
the Lenders.

“Code” means the Internal
Revenue Code of 1986, as amended from time to time.

“Commonly
Controlled Entity” means an entity, whether or not incorporated, that is under common control with the Borrower within
the meaning of Section 4001 of ERISA or is part of a group that includes the Borrower and that is treated as a single employer
under Section 414 of the Code.

“Compliance
Certificate” means a certificate duly executed by a Responsible Officer substantially in the form of Exhibit A.

“Connection
Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that
are franchise Taxes or branch profits Taxes.

“Consolidated
Capitalization” means on any date of determination, the sum of (a) Consolidated Total Debt on such date, plus
without duplication, (b) (i) the amounts set forth opposite the captions “common shareholders’ equity” (or any
similar caption) and “preferred stock” (or any similar caption) on the consolidated balance sheet, prepared in accordance
with GAAP, of the Borrower and its Subsidiaries as of such date, and (ii) the outstanding principal amount of any junior subordinated
deferrable interest debentures or other similar securities issued by the Borrower or any of its Subsidiaries after the Closing
Date.

“Consolidated
Capitalization Ratio” means, on any date of determination, the ratio of (a) Consolidated Total Debt to (b) Consolidated
Capitalization.

    	 3

    	

    

“Consolidated
Total Debt” means, at any date, the aggregate principal amount of all obligations of the Borrower and its Significant
Subsidiaries at such date that in accordance with GAAP would be classified as debt on a consolidated balance sheet of the Borrower,
and without duplication all Guarantee Obligations of the Borrower and its Significant Subsidiaries at such date in respect of obligations
of any other Person that in accordance with GAAP would be classified as debt on a consolidated balance sheet of such Person; provided
that, the determination of “Consolidated Total Debt” shall exclude, without duplication, (a) the Securitized
Bonds, (b) Indebtedness of the Borrower and its Significant Subsidiaries in an amount equal to the amount of cash held as cash
collateral for any fully cash collateralized letter of credit issued for the account of the Borrower or any Significant Subsidiary,
(c) imputed Indebtedness of the Borrower or any Significant Subsidiary incurred in connection with power purchase and fuel agreements,
(d) any junior subordinated deferrable interest debentures or other similar securities issued by the Borrower or any of its Subsidiaries
after the Closing Date and (e) as of a date of determination, the amount of any securities included within the caption “preferred
stock” (or any similar caption) on the consolidated balance sheet, prepared in accordance with GAAP, of the Borrower and
its Subsidiaries as of such date.

“Contractual
Obligation” means as to any Person, any provision of any security issued by such Person or of any agreement, instrument
or other undertaking to which such Person is a party or by which it or any of its property is bound.

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

“CPUC” means the California
Public Utilities Commission or its successor.

“Debtor
Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor
relief laws of the United States or other applicable jurisdictions from time to time in effect.

“Default”
means any of the events specified in Section 7, whether or not any requirement for the giving of notice, the lapse of time,
or both, has been satisfied.

“Disposition”
means, with respect to any property, any sale, lease, sale and leaseback, assignment, conveyance, transfer or other disposition
thereof. The terms “Dispose” and “Disposed of” shall have correlative meanings.

“Dollars” and “$”
means dollars in lawful currency of the United States.

“Eligible
Assignee” means (a) any commercial bank or other financial institution having a senior unsecured debt rating
by Moody’s of A3 or better and by S&P of A- or better, which is domiciled in a country which is a member of the
OECD or (b) with respect to any Person referred to in the preceding clause (a), any other Person that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of business
all of the Capital Stock of which is owned, directly or indirectly, by such Person;

    	 4

    	

    

provided
that in the case of clause (b), the Borrower shall have consented to the designation of such Person as an Eligible Assignee
(such consent of the Borrower not to be unreasonably withheld or delayed).

“Environmental
Laws” means any and all foreign, federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances,
codes, decrees, requirements of any Governmental Authority or other Requirements of Law (including common law) regulating, relating
to or imposing liability or standards of conduct concerning protection of human health or the environment, as now or may at any
time hereafter be in effect.

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.

“Eurocurrency Liabilities”
has the meaning set forth in Regulation D of the Board.

“Eurocurrency
Reserve Requirements” of any Lender for any Interest Period as applied to a Eurodollar Loan means the reserve percentage
applicable during such Interest Period (or if more than one such percentage shall be so applicable, the daily average of such percentages
for those days in such Interest Period during which any such percentage shall be so applicable) under any regulations of the Board
or other Governmental Authority having jurisdiction with respect to determining the maximum reserve requirement (including basic,
supplemental and emergency reserves) for such Lender with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities having a term equal to such Interest Period.

“Eurodollar
Base Rate” means, with respect to each day during each Interest Period pertaining to a Eurodollar Loan, the rate per
annum determined on the basis of the rate for deposits in Dollars for a period equal to such Interest Period commencing on the
first day of such Interest Period appearing on Reuters Screen pages LIBOR01 or LIBOR02 (or on any successor or substitute pages
of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided
on such pages of such service, as determined by the Administrative Agent from time to time for purposes of providing quotations
of interest rates applicable to Dollar deposits in the London interbank market, in each case the “LIBO Screen Rate”)
at or about 11:00 A.M., London time, two Business Days prior to the beginning of such Interest Period; provided that
if the LIBO Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement. In the
event that LIBO Screen Rate is unavailable, the “Eurodollar Base Rate” shall be determined by reference to such
other comparable publicly available service for displaying eurodollar rates as may be selected by the Administrative Agent or,
in the absence of such availability, by reference to the rate at which the Administrative Agent is offered Dollar deposits at or
about 11:00 A.M., New York City time, two Business Days prior to the beginning of such Interest Period in the interbank eurodollar
market where its eurodollar and foreign currency and exchange operations are then being conducted for delivery on the first day
of such Interest Period for the number of days comprised therein; provided that if any Eurodollar Base Rate so determined
shall be less than zero, such Eurodollar Base Rate shall be deemed to be zero for purposes of this Agreement.

“Eurodollar
Loans” means Loans the rate of interest applicable to which is based upon the Eurodollar Rate.

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“Eurodollar
Rate” means, with respect to each day during each Interest Period pertaining to a Eurodollar Loan, a rate per annum determined
for such day in accordance with the following formula (rounded upward to the nearest 1/100th of 1%):

	Eurodollar Base Rate
	1.00 - Eurocurrency Reserve Requirements

 

“Eurodollar
Tranche” means the collective reference to Eurodollar Loans the then current Interest Periods with respect to all of
which begin on the same date and end on the same later date (whether or not such Loans shall originally have been made on the same
day).

“Event of
Default” means any of the events specified in Section 7; provided that any requirement for the giving of
notice, the lapse of time, or both, has been satisfied.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

“Excluded
Taxes” means any of the following Taxes imposed on or with respect to any Recipient or required to be withheld or deducted
from a payment to any Recipient: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch
profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of or having its principal
office in or, in the case of any Lender, its lending office or funding office located in, the jurisdiction imposing such Tax (or
any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding
Taxes imposed on amounts payable to or for the account of such Lender with respect to any Loan pursuant to a law in effect on the
date on which (i) such Lender acquires such interest in such Loan or (ii) such Lender changes its lending office, except in each
case to the extent that, pursuant to Section 2.14, amounts with respect to such Taxes were payable either to such Lender’s
assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office,
(c) Taxes attributable to such Recipient’s failure to comply with Section 2.12 and (d) any U.S.
federal withholding Taxes imposed pursuant to FATCA.

“FATCA”
means Sections 1471 through 1474 of the Code, as of the Closing Date (or any amended or successor version
that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official
interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

“Federal
Funds Effective Rate” means for any day, the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers, as published on the next succeeding Business Day by the
Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations
for the day of such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected
by it.

“Foreign Lender” means
a Lender that is not a U.S. Person.

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“FPA”
means the Federal Power Act, as amended from time to time, and the rules and regulations promulgated thereunder.

“Funding
Office” means the office of the Administrative Agent specified in Schedule 8.2 or such other office as may be specified
from time to time by the Administrative Agent as its funding office by written notice to the Borrower and the Lenders.

“GAAP”
means generally accepted accounting principles in the United States as in effect from time to time, except as noted below. In the
event that any “Change in Accounting Principles” (as defined below) shall occur and such change results in a change
in the method of calculation of financial covenants, standards or terms in this Agreement, then, upon the request of the Borrower
or the Required Lenders, the Borrower and the Administrative Agent agree to enter into negotiations in order to amend such provisions
of this Agreement so as to reflect equitably such Change in Accounting Principles with the desired result that the criteria for
evaluating the Borrower’s financial condition shall be the same after such Change in Accounting Principles as if such Change
in Accounting Principles had not been made. Until such time as such an amendment shall have been executed and delivered by the
Borrower, the Required Lenders and the Administrative Agent, all financial covenants, standards and terms in this Agreement shall
continue to be calculated or construed as if such Change in Accounting Principles had not occurred. “Change in Accounting
Principles” refers to changes in accounting principles required by the promulgation of any rule, regulation, pronouncement
or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants or any successor
thereto, the SEC or, if applicable, the Public Company Accounting Oversight Board.

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory organization (including the National
Association of Insurance Commissioners and supra-national bodies such as the European Union or the European Central Bank).

“Guarantee
Obligation” means as to any Person (the “guaranteeing person”), any obligation, including a reimbursement,
counterindemnity or similar obligation, of the guaranteeing person that guarantees any Indebtedness, leases, dividends or other
obligations (the “primary obligations”) of any other third Person (the “primary obligor”)
in any manner, whether directly or indirectly, including any obligation of the guaranteeing person, whether or not contingent,
(i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to
advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital
or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the
ability of the primary obligor to make payment of such primary obligation, (iv) otherwise to assure or hold harmless the owner
of any such primary obligation against loss in respect thereof or (v) to reimburse or indemnify an issuer of a letter of credit, surety bond or guarantee issued by such
issuer in respect of primary obligations of a primary obligor other than the Borrower or any Significant Subsidiary; provided,
however, that the term

    	 7

    	

    

Guarantee Obligation
shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee
Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which
such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such
primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which
case the amount of such Guarantee Obligation shall be such guaranteeing person’s reasonably anticipated liability in respect
thereof as determined by the Borrower in good faith.

“Indebtedness”
means, of any Person at any date, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or services (other than trade payables, including under
energy procurement and transportation contracts, incurred in the ordinary course of such Person’s business), (c) all
obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created
or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession
or sale of such property), (e) all obligations of such Person as lessee which are capitalized in accordance with GAAP, (f) all
obligations of such Person, contingent or otherwise, as an account party or applicant under or in respect of acceptances, letters
of credit, surety bonds or similar arrangements (other than reimbursement obligations, which are not due and payable on such date,
in respect of documentary letters of credit issued to provide for the payment of goods and services in the ordinary course of business),
(g) the liquidation value of all mandatorily redeemable preferred Capital Stock of such Person, (h) all Guarantee Obligations
of such Person in respect of obligations of the kind referred to in clauses (a) through (g) above, (i) all obligations
of the kind referred to in clauses (a) through (h) above secured by (or for which the holder of such obligation has an existing
right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person,
whether or not such Person has assumed or become liable for the payment of such obligation (provided, that if such Person
is not liable for such obligation, the amount of such Person’s Indebtedness with respect thereto shall be deemed to be the
lesser of the stated amount of such obligation and the value of the property subject to such Lien), and (j) for the purposes
of Section 8(e) only, all obligations of such Person in respect of Swap Agreements, provided that Indebtedness as used
in this Agreement shall exclude any Non-Recourse Debt. The Indebtedness of any Person shall include the Indebtedness of any other
entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such
Indebtedness expressly provide that such Person is not liable therefor.

“Indemnified
Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of
any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

“Indenture”
means each of (a) the Indenture, dated as of April 22, 2005 (which supplemented, amended and restated the Indenture of Mortgage,
dated as of March 11, 2004,

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between the Borrower
and the Indenture Trustee, as supplemented by the First Supplemental Indenture, dated as of March 23, 2004, the Second Supplemental
Indenture, dated as of April 12, 2004), as supplemented by the First Supplemental Indenture, dated as of March 13, 2007, as further
supplemented by the Second Supplemental Indenture, dated as of December 4, 2007, as further supplemented by the Third Supplemental
Indenture, dated as of March 3, 2008, as further supplemented by the Fourth Supplemental Indenture, dated as of October 15, 2008,
as further supplemented by the Fifth Supplemental Indenture, dated as of November 18, 2008, as further supplemented by the Sixth
Supplemental Indenture, dated as of March 6, 2009, as further supplemented by the Seventh Supplemental Indenture, dated as of June
11, 2009, as further supplemented by the Eighth Supplemental Indenture, dated as of November 18, 2009, as further supplemented
by the Ninth Supplemental Indenture, dated as of April 1, 2010, as further supplemented by the Tenth Supplemental Indenture, dated
as of September 15, 2010, as further as supplemented by the Eleventh Supplemental Indenture, dated as of October 12, 2010, as further
supplemented by the Twelfth Supplemental Indenture, dated as of November 18, 2010, as further supplemented by the Thirteenth Supplemental
Indenture, dated as of May 13, 2011, as further supplemented by the Fourteenth Supplemental Indenture, dated as of September 12,
2011, as further supplemented by the Fifteenth Supplemental Indenture, dated as of November 22, 2011, as further supplemented by
the Sixteenth Supplemental Indenture, dated as of December 1, 2011, as further supplemented by the Seventeenth Supplemental Indenture,
dated as of April 16, 2012, as further supplemented by the Eighteenth Supplemental Indenture, dated as of August 16, 2012, as further
supplemented by the Nineteenth Supplemental Indenture, dated as of June 14, 2013, as further supplemented by the Twentieth Supplemental
Indenture, dated as of November 12, 2013, as further supplemented by the Twenty First Supplemental Indenture, dated as of February
21, 2014, as further supplemented by the Twenty Second Supplemental Indenture, dated as of May 12, 2014, as further supplemented
by the Twenty Third Supplemental Indenture, dated as of August 18, 2014, as further supplemented by the Twenty Fourth Supplemental
Indenture, dated as of November 6, 2014, as further supplemented by the Twenty Fifth Supplemental Indenture, dated as of June 12,
2015, as further supplemented by the Twenty Sixth Supplemental Indenture, dated as of November 5, 2015, as further supplemented
by the Twenty Seventh Supplemental Indenture, dated as of March 1, 2016, as further supplemented by the Twenty Eighth Supplemental
Indenture, dated as of December 1, 2016, as further supplemented by the Twenty Ninth Supplemental Indenture, dated as of March
10, 2017, and as further supplemented or amended from time to time and (b) the Indenture, dated as of November 29, 2017 between
the Borrower and the Indenture Trustee.

“Indenture
Trustee” means The Bank of New York Mellon Trust Company, N.A., as successor by merger to The Bank of New York Trust
Company, N.A., as successor to BNY Western Trust Company, and any successor thereto as trustee under the Indenture.

“Insolvency”
means with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of Section 4245 of ERISA.

“Insolvent”
means pertaining to a condition of Insolvency.

“Interest
Payment Date” means (a) as to any ABR Loan, the last day of each March, June, September and December to occur while
such Loan is outstanding and the final maturity date of such Loan, (b) as to any Eurodollar Loan having an Interest Period
of three months or

    	 9

    	

    

less, the last day
of such Interest Period, (c) as to any Eurodollar Loan having an Interest Period longer than three months, each day that is
three months, or a whole multiple thereof, after the first day of such Interest Period and the last day of such Interest Period,
and (d) as to any Eurodollar Loan, the date of any repayment or prepayment made in respect thereof.

“Interest
Period” means, as to any Eurodollar Loan, (a) initially, the period commencing on the borrowing or conversion date,
as the case may be, with respect to such Eurodollar Loan and ending one, two, three or six or (if available to all Lenders) nine
months thereafter, as selected by the Borrower in its notice of borrowing or notice of conversion, as the case may be, given with
respect thereto; and (b) thereafter, each period commencing on the last day of the next preceding Interest Period applicable
to such Eurodollar Loan and ending one, two, three or six or (if available to all Lenders) nine months thereafter, as selected
by the Borrower by irrevocable notice to the Administrative Agent not later than 12:00 Noon, New York City time, on the date that
is three Business Days prior to the last day of the then current Interest Period with respect thereto; provided that, all
of the foregoing provisions relating to Interest Periods are subject to the following:

(i) if
any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar
month in which event such Interest Period shall end on the immediately preceding Business Day;

(ii) the
Borrower may not select an Interest Period that would extend beyond the Maturity Date;

(iii) any
Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; and

(iv) the
Borrower shall select Interest Periods so as not to require a payment or prepayment of any Eurodollar Loan during an Interest Period
for such Loan.

“IRS” means the United
States Internal Revenue Service.

“knowledge
of the Borrower” means the actual knowledge of any Responsible Officer of the Borrower.

“Lenders”
has the meaning assigned to that term in the introductory paragraph of this Agreement.

“Lien”
means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other
security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement and any capital lease having substantially the same economic
effect as any of the foregoing).

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“Loan”
and “Loans” each has the meaning set forth in Section 2.1.

“Loan Documents”
means this Agreement, the Notes and, in each case, any amendment, waiver, supplement or other modification to any of the foregoing.

“Material
Adverse Effect” means (a) a change in the business, property, operations or financial condition of the Borrower
and its Subsidiaries taken as a whole that could reasonably be expected to materially and adversely affect the Borrower’s
ability to perform its obligations under the Loan Documents or (b) a material adverse effect on the validity or enforceability
of this Agreement or any of the other Loan Documents.

“Materials
of Environmental Concern” means any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum
products or any hazardous or toxic substances, materials or wastes, defined or regulated as such in or under any Environmental
Law, including asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

“Maturity
Date” means February 22, 2019.

“Moody’s” means
Moody’s Investors Service, Inc.

“Multiemployer
Plan” means a Plan that is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

“Non-Recourse
Debt” means Indebtedness of the Borrower or any of its Significant Subsidiaries that is incurred in connection with the
acquisition, construction, sale, transfer or other disposition of specific assets, to the extent recourse, whether contractual
or as a matter of law, for non-payment of such Indebtedness is limited (a) to such assets, or (b) if such assets are
(or are to be) held by a Subsidiary formed solely for such purpose, to such Subsidiary or the Capital Stock of such Subsidiary.

“Notes” has the meaning
set forth in Section 2.10.

“Obligations”
means the unpaid principal of and interest on (including, without limitation, interest accruing after the maturity of the Loans
and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or
like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding) the Loans and all other obligations and liabilities of the Borrower to the Administrative Agent or to any Lender, whether
direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under,
out of, or in connection with, this Agreement, any other Loan Document or any other document made, delivered or given in connection
herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses
(including, without limitation, all fees, charges and disbursements of counsel to the Administrative Agent or to any Lender that
are required to be paid by the Borrower pursuant hereto) or otherwise.

“OECD”
means the countries constituting the “Contracting Parties” to the Convention on the Organisation for Economic Co-operation
and Development, as such term is defined in Article 4 of such Convention.

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“OFAC”
has the meaning assigned to that term in Section 3.15.

“Other Connection
Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such
Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered,
become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged
in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

“Other Taxes”
means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment
made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security
interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed
with respect to an assignment.

“Participant” has the
meaning assigned to that term in Section 8.6(c)(i).

“Participant
Register” has the meaning assigned to that term in Section 8.6(c)(iii).

“PBGC”
means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor).

“PCG”
means PG&E Corporation, a California corporation and the holder of all of the issued and outstanding common stock of the Borrower.

“Person”
means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of whatever nature.

“Plan”
means at a particular time, any employee benefit plan that is covered by ERISA and in respect of which the Borrower or a Commonly
Controlled Entity is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

“Rating”
means each rating announced by S&P and Moody’s in respect of the Borrower’s senior unsecured, non credit-enhanced
debt.

“Recipient” means the
Administrative Agent or any Lender.

“Register” has the
meaning assigned to that term in Section 8.6(b)(iv).

“Regulation U”
means Regulation U of the Board as in effect from time to time.

“Related
Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees,
agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates.

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“Reorganization”
means with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section 4241
of ERISA.

“Reportable
Event” means any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty-day
notice period is waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043.

“Required
Lenders” means, at any time, the holders of more than 50% of the aggregate principal amount of the Loans; provided, however,
if at any date of determination there are two or fewer Lenders, “Required Lenders” shall constitute 100% of
the Lenders.

“Requirement
of Law” means, as to any Person, the articles of incorporation and bylaws or other organizational or governing documents
of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority,
in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is
subject.

“Responsible
Officer” means the chief executive officer, president, chief financial officer, treasurer or assistant treasurer of the
Borrower, but in any event, with respect to financial matters, the chief financial officer, treasurer or assistant treasurer of
the Borrower.

“S&P” means S&P
Global Ratings, a division of S&P Global Inc., and any successor thereto.

“SEC”
means the Securities and Exchange Commission, any successor thereto and any analogous Governmental Authority.

“Securitized
Bonds” means any securitized bonds or similar asset-backed securities that are non-recourse to the Borrower, are issued
by a special purpose Subsidiary of the Borrower and are payable from a specific or dedicated rate component.

“Significant
Subsidiary” has the meaning assigned to that term in Article 1, Rule 1-02(w) of Regulation S-X of the Exchange
Act as of the Closing Date, provided that notwithstanding the foregoing, neither PG&E Energy Recovery Funding LLC nor
any other special purpose finance subsidiary shall constitute a Significant Subsidiary. Unless otherwise qualified, all references
to a “Significant Subsidiary” or to “Significant Subsidiaries” in this Agreement shall refer to a Significant
Subsidiary or Significant Subsidiaries of the Borrower.

“Single
Employer Plan” means any Plan that is covered by Title IV of ERISA, but that is not a Multiemployer Plan.

“Specified
Exchange Act Filings” means the Borrower’s Form 10-K annual report for the year ended December 31, 2017 and
each and all of the Form 10-Ks, Form 10-Qs and Form 8-Ks (and to the extent applicable proxy statements) filed by the Borrower
or PCG with the SEC after December 31, 2017 and prior to the date that is one Business Day before the date of this Agreement.

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“Subsidiary”
means as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through
one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a “Subsidiary”
or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

“Swap Agreement”
means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving,
or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination
of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided
by current or former directors, officers, employees or consultants of the Borrower or any of its Subsidiaries shall be a “Swap
Agreement”.

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments,
fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

“Transferee”
means any Assignee or Participant.

“Type”
means, as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.

“United
States” means the United States of America.

“U.S. Person”
means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

1.2 Other Definitional
Provisions and Interpretative Provisions.

(a) Other Definitional
Provisions. Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used
in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto. The words “hereof”,
“herein” and “hereunder” and words of similar import, when used in this Agreement, shall
refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule and Exhibit references
are to this Agreement unless otherwise specified. The meanings given to terms defined herein shall be equally applicable to both
the singular and plural forms of such terms.

(b) Interpretation.
As used herein and in the other Loan Documents, and any certificate or other document made or delivered pursuant hereto or thereto,
except as otherwise provided therein, (i) accounting terms relating to the Borrower and its Significant Subsidiaries defined in Section 1.1 and accounting
terms partly defined in Section 1.1, to the extent not defined, shall have the respective meanings given to them under GAAP,
(ii) the words “include”,

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“includes”
and “including” shall be deemed to be followed by the phrase “without limitation”, (iii) the
word “incur” shall be construed to mean incur, create, issue, assume or become liable in respect of (and the
words “incurred” and “incurrence” shall have correlative meanings), (iv) the words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, Capital Stock, securities, revenues, accounts, leasehold interests and contract
rights, and (v) references to agreements or other Contractual Obligations shall, unless otherwise specified, be deemed to
refer to such agreements or Contractual Obligations as amended, supplemented, restated or otherwise modified from time to time.

(c) Significant
Subsidiaries. The Borrower shall not be required to perform, nor shall it be required to guarantee the performance of, any
of the affirmative covenants set forth in Section 5 that apply to any of its Significant Subsidiaries nor shall any of the
Borrower’s Significant Subsidiaries be required to perform, nor shall any of such Significant Subsidiaries be required to
guarantee the performance of, any of the Borrower’s affirmative covenants set forth in Section 5 or any of the affirmative
covenants set forth in Section 5 that apply to any other Significant Subsidiary; provided, that nothing in this Section
1.2(c) shall prevent the occurrence of a Default or an Event of Default arising out of the Borrower’s failure to cause any
Significant Subsidiary to comply with the provisions of this Agreement applicable to such Significant Subsidiary.

SECTION 2. AMOUNT AND TERMS OF THE LOANS

2.1 Term Loans.
Subject to the terms and conditions hereof, each Lender severally agrees to make, on the Closing Date, a single loan to the Borrower
in an amount equal to $125,000,000 (each, a “Loan,” and, collectively, the “Loans”), with
the aggregate amount of all Loans on the Closing Date to equal $250,000,000. As long as the Administrative Agent has received a
notice of borrowing specifying the initial Interest Period, executed by an authorized officer of the Borrower, not later than 12:00
Noon, New York City time, three Business Days prior to the Closing Date, the Loans shall initially be made as Eurodollar Loans.
If the Administrative Agent has not received a notice of borrowing specifying the initial Interest Period, executed by an authorized
officer of the Borrower, by 12:00 Noon, New York City time, three Business Days prior to the Closing Date, the Loans shall initially
be made as ABR Loans. Subject to the terms and conditions of this Agreement, the Borrower may elect to convert all or a portion
of an ABR Loan to a Eurodollar Loan and vice versa. Once repaid, the Loans may not be reborrowed.

2.2 Fees.
The Borrower agrees to pay to the Administrative Agent the fees in the amounts and on the dates as set forth in any written, duly
executed fee agreement with the Administrative Agent and to perform any other obligations contained therein.

2.3 Repayment
of Loans; Evidence of Debt.

(a) The Borrower
hereby unconditionally promises to pay to each Lender the then unpaid principal amount of such Lender’s Loan on the Maturity
Date.

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(b) Each Lender
shall maintain accounts in which it shall record (i) the amount of the Loan made by it hereunder, (ii) the amount of any principal
or interest due and payable or to become due and payable from the Borrower to such Lender hereunder, and (iii) the amount of any
sum received by such Lender hereunder for the account of such Lender.

(c) The entries
made in the accounts maintained pursuant to paragraph (b) of this Section shall be prima facie evidence of the existence and amounts
of the obligations recorded therein; provided that the failure of any Lender to maintain such accounts or any error therein
shall not in any manner affect the obligation of the Borrower to repay such Lender’s Loan in accordance with the terms of
this Agreement.

2.4 Optional
Prepayments. The Borrower may at any time and from time to time prepay the Loans, in whole or in part, without premium or penalty,
upon irrevocable notice delivered to the Administrative Agent no later than 12:00 Noon, New York City time, three Business Days
prior thereto, in the case of Eurodollar Loans, and no later than 12:00 Noon, New York City time, one Business Day prior thereto,
in the case of ABR Loans, which notice shall specify the date and amount of prepayment and whether the prepayment is of Eurodollar
Loans or ABR Loans; provided, that if a Eurodollar Loan is prepaid on any day other than the last day of the Interest Period
applicable thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.13. Upon receipt of any such notice the
Administrative Agent shall promptly notify the Lenders thereof. If any such notice is given, the amount specified in such notice
shall be due and payable on the date specified therein, together with accrued interest to such date on the amount prepaid.

2.5 Conversion
and Continuation Options.

(a) The Borrower
may elect from time to time to convert Eurodollar Loans to ABR Loans by giving the Administrative Agent prior irrevocable notice
of such election no later than 12:00 Noon, New York City time, on the Business Day preceding the proposed conversion date, provided
that any such conversion of Eurodollar Loans may only be made on the last day of an Interest Period with respect thereto. The Borrower
may elect from time to time to convert ABR Loans to Eurodollar Loans by giving the Administrative Agent prior irrevocable notice
of such election no later than 12:00 Noon, New York City time, on the third Business Day preceding the proposed conversion date
(which notice shall specify the length of the initial Interest Period therefor), provided that no ABR Loan may be converted
into a Eurodollar Loan when any Event of Default has occurred and is continuing and the Required Lenders have determined in their
sole discretion not to permit such conversions. Upon receipt of any such notice the Administrative Agent shall promptly notify
the Lenders thereof.

(b) Any Eurodollar
Loan may be continued as such upon the expiration of the then current Interest Period with respect thereto by the Borrower giving
irrevocable notice to the Administrative Agent, in accordance with the applicable provisions of the term “Interest Period”
set forth in Section 1.1, of the length of the next Interest Period to be applicable to such Loans, provided that no
Eurodollar Loan may be continued as such when any Event of Default has occurred and is continuing and the Required Lenders have
determined in their sole discretion not to permit such continuations, and provided,
further, that if the Borrower shall fail to give any required notice as described above in this paragraph or if such continuation
is not permitted

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pursuant to the
preceding proviso such Loans shall be automatically converted to ABR Loans on the last day of such then expiring Interest Period.
Upon receipt of any such notice the Administrative Agent shall promptly notify the Lenders thereof.

2.6 Limitations
on Eurodollar Tranches. Notwithstanding anything to the contrary in this Agreement, conversions and continuations of Eurodollar
Loans and all selections of Interest Periods shall be in such amounts and be made pursuant to such elections so that (a) after
giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each Eurodollar Tranche shall be equal
to $1,000,000 or a whole multiple of $500,000 in excess thereof and (b) no more than 5 Eurodollar Tranches shall be outstanding
at any one time.

2.7 Interest
Rates; Payment Dates and Payments.

(a) Each Eurodollar
Loan shall bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the Eurodollar
Rate determined for such day plus the Applicable Margin.

(b) Each ABR Loan
shall bear interest at a rate per annum equal to the ABR plus the Applicable Margin.

(c) (i) If
all or a portion of the principal amount of the Loans shall not be paid when due (whether at the stated maturity, by acceleration
or otherwise), such overdue amount shall bear interest at a default rate per annum equal to (x) in the case of the Loans,
the rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this Section plus 2%, and (ii) if
all or a portion of any interest payable on the Loans or any fee payable (excluding any expenses or other indemnity) hereunder
shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), such overdue amount shall bear interest
at a default rate per annum equal to the rate then applicable to ABR Loans plus 2%, in each case, with respect to clauses (i)
and (ii) above, from the date of such non-payment until such amount is paid in full (as well after as before judgment).

(d) Interest
shall be payable in arrears on each Interest Payment Date, provided that interest accruing pursuant to paragraph (c)
of this Section shall be payable from time to time on demand.

(e) Notwithstanding
anything to the contrary herein, all payments (including prepayments) to be made by the Borrower hereunder, whether on account
of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and shall be made prior to 4:00 P.M.,
New York City time, on the due date thereof to the Administrative Agent, for the account of the Lenders, at the Funding Office,
in Dollars and in immediately available funds. The Administrative Agent shall distribute such payments to the Lenders promptly
upon receipt in like funds as received. If any payment hereunder (other than payments on the Eurodollar Loans) becomes due and
payable on a day other than a Business Day, such payment shall be extended to the next succeeding Business Day. If any payment
on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the
next succeeding Business Day unless the result of such extension would be to extend such payment into another calendar month, in which
event such payment shall be made on the immediately preceding Business Day. In the case of any extension of any payment of principal
pursuant to

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the preceding two
sentences, interest thereon shall be payable at the then applicable rate during such extension.

2.8 Computation
of Interest and Fees.

(a) Interest and
fees payable pursuant hereto shall be calculated on the basis of a 360-day year for the actual days elapsed, except that, with
respect to ABR Loans the rate of interest on which is calculated on the basis of the Base Rate, the interest thereon shall be calculated
on the basis of a 365- (or 366-, as the case may be) day year for the actual days elapsed. The Administrative Agent shall as soon
as practicable notify the Borrower and the Lenders of each determination of a Eurodollar Rate. Any change in the interest rate
on the Loans resulting from a change in the ABR or the Eurocurrency Reserve Requirements shall become effective as of the opening
of business on the day on which such change becomes effective. The Administrative Agent shall as soon as practicable notify the
Borrower and the Lenders of the effective date and the amount of each such change in interest rate.

(b) Each determination
of an interest rate by the Administrative Agent pursuant to any provision of this Agreement shall constitute prima facie evidence
of such amounts. The Administrative Agent shall, at the request of the Borrower or any Lender, deliver to the Borrower or such
Lender a statement showing the quotations used by the Administrative Agent in determining any interest rate pursuant to Section
2.8(a).

2.9 Inability
to Determine Interest Rate. If prior to the first day of any Interest Period: (a) the Administrative Agent shall have determined
(which determination shall be conclusive and binding upon the Borrower) that, by reason of circumstances affecting the relevant
market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, or (b) the Administrative
Agent shall have received notice from the Required Lenders that the Eurodollar Rate determined or to be determined for such Interest
Period will not adequately and fairly reflect the cost to such Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period, the Administrative Agent shall give telecopy or telephonic notice
thereof to the Borrower and the Lenders as soon as practicable thereafter. If such notice is given (x) any Eurodollar Loans
requested to be made on the first day of such Interest Period shall be made as ABR Loans, (y) any Loans that were to have
been converted on the first day of such Interest Period to Eurodollar Loans shall be continued as ABR Loans and (z) any outstanding
Eurodollar Loans shall be converted, on the last day of the then-current Interest Period, to ABR Loans. Until such notice has been
withdrawn by the Administrative Agent, no further Eurodollar Loans shall be made or continued as such, nor shall the Borrower have
the right to convert Loans to Eurodollar Loans.

2.10 Pro Rata
Treatment and Payments; Notes.

(a) Each
payment (including each prepayment) by the Borrower on account of principal of and interest on the Loans shall be made pro rata
according to the respective outstanding principal amounts of the Loans then held by the Lenders.

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(b) Unless the
Administrative Agent shall have been notified in writing by the Borrower prior to the date of any payment due to be made by the
Borrower hereunder that the Borrower will not make such payment to the Administrative Agent, the Administrative Agent may assume
that the Borrower is making such payment, and the Administrative Agent may, but shall not be required to, in reliance upon such
assumption, make available to the Lenders their respective pro rata shares of a corresponding amount. If such payment is
not made to the Administrative Agent by the Borrower within three Business Days after such due date, the Administrative Agent shall
be entitled to recover, on demand, from each Lender to which any amount was made available pursuant to the preceding sentence,
such amount with interest thereon at the rate per annum equal to the daily average Federal Funds Effective Rate. Nothing herein
shall be deemed to limit the rights of the Administrative Agent or any Lender against the Borrower.

(c) The
Borrower agrees that, upon the request by any Lender, the Borrower will promptly execute and deliver to such Lender a
promissory note (a “Note”) of the Borrower evidencing the Loan (or any portion thereof) of such Lender,
substantially in the form of Exhibit F, with appropriate insertions as to date and principal amount; provided,
that delivery of Notes shall not be a condition precedent to the occurrence of the Closing Date or the making of the Loans on
the Closing Date.

2.11 Change
of Law.

(a) If a Change of Law shall:

(i)
subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the
definition of Excluded Taxes and (C) Connection Income Taxes) on its Loan, or other obligations, or its deposits, reserves,
other liabilities or capital attributable thereto;

(ii) impose,
modify or hold applicable any reserve, special deposit, compulsory loan, Federal Deposit Insurance Corporation insurance charge
or other similar insurance charge or similar requirement against assets held by, deposits or other liabilities in or for the account
of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any Lender, which requirements are
generally applicable to advances, loans or other extensions of credit made by such Lender; or

(iii) impose
on any Lender any other condition that is generally applicable to loans made by such Lender or participations therein;

and the result of any of the foregoing
is to increase the cost to such Lender or such other Recipient by an amount that such Lender or such other Recipient deems to be
material, of making, converting into, continuing or maintaining the Loans, or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Borrower shall promptly pay such Lender or such other Recipient, within ten Business Days
after its demand, any additional amounts necessary to compensate such Lender or such other Recipient for such increased cost or reduced amount receivable. If any Lender
or other Recipient becomes entitled to claim any additional amounts pursuant to this paragraph, it shall promptly notify the Borrower
(with a copy

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to the Administrative
Agent) of the event by reason of which it has become so entitled; provided, however, that no Lender or other Recipient
shall be entitled to demand such compensation more than 90 days following the repayment of the Loan in respect of which such
demand is made.

(b) If any Lender
shall have determined that a Change of Law regarding capital or liquidity requirements shall have the effect of reducing the rate
of return on such Lender’s capital or the capital of any corporation Controlling such Lender as a consequence of its obligations
hereunder to a level below that which such Lender or such corporation could have achieved but for such Change of Law (taking into
consideration such Lender’s or such corporation’s policies with respect to capital adequacy) by an amount deemed by
such Lender to be material, then from time to time, after submission by such Lender to the Borrower (with a copy to the Administrative
Agent) of a written request therefor, the Borrower shall pay to such Lender such additional amount or amounts as will compensate
such Lender or such corporation for such reduction.

(c) A certificate
as to any additional amounts payable pursuant to this Section submitted by any Lender or any other Recipient to the Borrower shall
constitute prima facie evidence of such costs or amounts. Notwithstanding anything to the contrary in this Section, the Borrower
shall not be required to compensate a Lender or any other Recipient pursuant to this Section for any amounts incurred more than
six months prior to the date that such Lender or such other Recipient notifies the Borrower of such Lender’s or such other
Recipient’s intention to claim compensation therefor; provided that, if the circumstances giving rise to such claim
have a retroactive effect, then such six-month period shall be extended to include the period of such retroactive effect not to
exceed twelve months. The obligations of the Borrower pursuant to this Section shall survive for 90 days after the termination
of this Agreement and the payment of the Loans and all other amounts then due and payable hereunder.

2.12 Taxes.

(a) Any and all
payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding
for any Taxes, except as required by applicable laws. If any applicable laws (as determined in the good faith discretion of the
Borrower or the Administrative Agent) require the deduction or withholding of any Tax from any such payment by the Administrative
Agent or the Borrower, then (A) the Borrower or the Administrative Agent shall withhold or make such deductions as are determined
by the Borrower or the Administrative Agent to be required, (B) the Borrower or the Administrative Agent shall timely pay the full
amount withheld or deducted to the relevant Governmental Authority in accordance with such laws, and (C) to the extent that the
withholding or deduction is made on account of Indemnified Taxes, the sum payable by the Borrower shall be increased as necessary
so that after any required withholding or the making of all required deductions (including deductions applicable to additional
sums payable under this Section 2.12) the applicable Lender receives an amount equal to the sum it would have received had no such
withholding or deduction been made.

(b) Without limiting
the provisions of subsection (a) above, the Borrower shall timely pay to the relevant Governmental Authority in accordance with
applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

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(c) (i)  The
Borrower shall, and does hereby, indemnify each Recipient, and shall make payment in respect thereof within 10 days after demand
therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts
payable under this Section 2.12) payable or paid by such Recipient or required to be withheld or deducted from a payment to such
Recipient, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly
or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender or another Recipient (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender or another Recipient, shall be conclusive absent manifest error.

(ii) Each
Lender shall, and does hereby, severally indemnify, and shall make payment in respect thereof within 10 days after demand therefor,
(x) the Administrative Agent against any Indemnified Taxes attributable to such Lender (but only to the extent that the
Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of
the Borrower to do so), (y) the Administrative Agent against any Taxes attributable to such Lender’s failure to comply
with the provisions of Section 8.6(c)(iii) relating to the maintenance of a Participant Register and (z) the Administrative
Agent against any Excluded Taxes attributable to such Lender that are payable or paid by the Administrative Agent in connection
with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly
or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability
delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the
Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other
Loan Document against any amount due to the Administrative Agent under this clause (ii).

(d) Upon request
by the Borrower or the Administrative Agent, as the case may be, after any payment of Taxes by the Borrower or by the Administrative
Agent to a Governmental Authority as provided in this Section 2.12, the Borrower shall deliver to the Administrative Agent or the
Administrative Agent shall deliver to the Borrower, as the case may be, the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of any return required by laws to report such payment or other evidence
of such payment reasonably satisfactory to the Borrower or the Administrative Agent, as the case may be.

(e)

(i) Any Lender
that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under this Agreement shall
deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative
Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will
permit such payments to be made without withholding or at a reduced rate of withholding. In addition, if reasonably
requested by the Borrower or the Administrative Agent, such Lender shall deliver such other documentation prescribed by applicable
law

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or reasonably
requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether
or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary
in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set
forth in Sections 2.12(e)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in a Lender’s reasonable judgment such
completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially
prejudice the legal or commercial position of such Lender.

(ii) Without limiting the generality
of the foregoing,

(A) any Lender
that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes
a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative
Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

(B) any Foreign
Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever
of the following is applicable:

(I) in the
case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to
payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or W-8BEN-E, as applicable, establishing an
exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty
and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or W-8BEN-E, as applicable, establishing
an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other
income” article of such tax treaty;

(II) executed originals of IRS
Form W-8ECI;

(III) in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x)
a certificate substantially in the form of Exhibit G-1 to the effect that such Foreign Lender is not a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section
881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S.
Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN or W-8BEN-E, as applicable,;

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(IV) to the
extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS
Form W-8BEN or W-8BEN-E, as applicable, a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-2 or Exhibit G-3,
IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign
Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest
exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-4 on behalf
of each such direct and indirect partner; or

(V) notwithstanding
anything to the contrary set forth in this Section 2.12(e), each Foreign Lender shall deliver to the Borrower and the Administrative
Agent, on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement, forms described in Sections
2.12(e)(ii)(B)(I), (II), (III) or (IV), as applicable, establishing a complete exemption from U.S. federal withholding Tax with
respect to amounts payable to such Foreign Lender under this Agreement; provided, however, that a Foreign Lender shall not be required
to deliver forms establishing a complete exemption from U.S. federal withholding Tax with respect to amounts payable to such Foreign
Lender under this Agreement pursuant to this Section 2.12(e)(ii)(B)(V) to the extent that, due to a Change of Law, such Foreign
Lender is unable to do so.

(C) any Foreign
Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed
originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal
withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit
the Borrower or the Administrative Agent or to determine the withholding or deduction required to be made; and

(D) if a
payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender
were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed
by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed
by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably
requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply
with its obligations under FATCA and to determine that such Lender has
complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.

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Solely for
purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the Closing Date.

(iii) Each
Lender agrees that if any form or certification it previously delivered pursuant to this Section 2.12 expires or becomes obsolete
or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative
Agent in writing of its legal inability to do so.

(f) Unless required
by applicable laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of
a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account
of such Lender. If any Recipient determines, in its sole discretion, that it has received a refund of, or credit with respect to,
any Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section 2.12 (any such refund or credit, a “Tax Benefit”), it shall pay to the Borrower
an amount equal to such Tax Benefit (but only to the extent of indemnity payments made, or additional amounts paid, by the
Borrower under this Section 2.12 with respect to the Taxes giving rise to such Tax Benefit), net of all out-of-pocket expenses
(including Taxes) incurred by such Recipient, and without interest (other than any interest paid by the relevant Governmental Authority
with respect to such Tax Benefit), provided that the Borrower, upon the request of the Recipient, agrees to repay the amount
paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Recipient in the event the Recipient is required to repay such Tax Benefit to such Governmental Authority. Notwithstanding anything
to the contrary in this subsection, in no event will the applicable Recipient be required to pay any amount to the Borrower pursuant
to this subsection the payment of which would place the Recipient in a less favorable net after-Tax position than such Recipient
would have been in if the Tax subject to indemnification and giving rise to such Tax Benefit had not been deducted, withheld or
otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection
shall not be construed to require any Recipient to make available its tax returns (or any other information relating to its taxes
that it deems confidential) to the Borrower or any other Person.

(g) Each party’s
obligations under this Section 2.12 shall survive for one year after the termination of this Agreement and the payment of the Loans
and all other amounts payable hereunder.

2.13 Indemnity.
The Borrower agrees to indemnify each Lender for, and to hold each Lender harmless from, any loss (other than the loss of Applicable
Margin) or expense that such Lender may sustain or incur as a consequence of (a) default by the Borrower in making a conversion
into or continuation of Eurodollar Loans after the Borrower has given a notice requesting the same in accordance with the provisions
of this Agreement, (b) default by the Borrower in making any prepayment of or conversion from Eurodollar Loans after the Borrower
has given a notice thereof in accordance with the provisions of this Agreement or (c) the making of a prepayment of Eurodollar
Loans on a day that is not the last day of an Interest Period with respect thereto. A certificate as to any amounts payable pursuant
to this Section submitted to the Borrower by any Lender shall be conclusive in the absence of manifest error. This covenant

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 shall survive
for 90 days after the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

2.14 Change
of Lending Office. Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 2.11 or
2.12 with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations
of such Lender) to designate another lending office for the Loan affected by such event with the object of avoiding the consequences
of such event; provided, that such designation is made on terms that, in the sole but reasonable judgment of such Lender,
cause such Lender and its lending office to suffer no unreimbursed economic disadvantage or any legal or regulatory disadvantage,
and provided, further, that nothing in this Section shall affect or postpone any of the obligations of the Borrower
or the rights of any Lender pursuant to Section 2.11 or 2.12.

SECTION 3.  REPRESENTATIONS AND WARRANTIES

To induce the Lenders
and the Administrative Agent to enter into this Agreement and to induce the Lenders to make the Loans, the Borrower hereby represents
and warrants to the Lenders and the Administrative Agent, on the Closing Date that:

3.1 Financial
Condition. The audited consolidated balance sheet of the Borrower and its consolidated Subsidiaries as of December 31,
2017, and the related consolidated statements of operations and cash flows for the fiscal year ended on such date, reported on
by Deloitte & Touche LLP, present fairly in all material respects the consolidated financial condition of the Borrower
and its consolidated Subsidiaries as of such date, and the consolidated results of its operations and its consolidated cash flows
for the fiscal year then ended. All such financial statements, including the related schedules and notes thereto, have been prepared
in accordance with GAAP applied consistently throughout the periods involved.

3.2 No Change.
Since December 31, 2017, there has been no development or event that has had or could reasonably be expected to have a Material
Adverse Effect, except as disclosed in the Specified Exchange Act Filings.

3.3 Existence;
Compliance with Law. Each of the Borrower and its Significant Subsidiaries (a) is duly organized, validly existing and
in good standing under the laws of its jurisdiction of organization, (b) has the corporate power and corporate authority to
own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently
engaged, (c) is duly qualified as a foreign corporation or other organization and in good standing under the laws of each
jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification except
to the extent that the failure to so qualify could not reasonably be expected to have a Material Adverse Effect and (d) is
in compliance with all Requirements of Law except for any Requirements of Law being contested in good
faith by appropriate proceedings and except to the extent that the failure to comply therewith could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.

3.4 Power;
Authorization; Enforceable Obligations. The Borrower has the corporate power and corporate authority to make, deliver and perform
the Loan Documents and to obtain

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extensions of credit
hereunder. The Borrower has taken all necessary corporate action to authorize the execution, delivery and performance of the Loan
Documents and to authorize the extensions of credit on the terms and conditions of this Agreement. No consent or authorization
of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection
with the extensions of credit hereunder or with the execution, delivery, performance, validity or enforceability of this Agreement
or any of the Loan Documents (other than the Indenture), except (i) consents, authorizations, filings and notices which have
been obtained or made and are in full force and effect, (ii) any consent, authorization or filing that may be required in
the future the failure of which to make or obtain could not reasonably be expected to have a Material Adverse Effect and (iii) applicable
regulatory requirements (including the approval of the CPUC) prior to foreclosure under the Indenture (to the extent that there
is any pledge of property under or pursuant to the Indenture). This Agreement has been, and each other Loan Document upon execution
and delivery will be, duly executed and delivered by the Borrower. This Agreement constitutes, and each other Loan Document upon
execution will constitute, a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance
with its terms, except as enforceability may be limited by (x) applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the enforcement of creditors’ rights generally, laws of general application related to the enforceability
of securities secured by real estate and by general equitable principles (whether enforcement is sought by proceedings in equity
or at law) and (y) applicable regulatory requirements (including the approval of the CPUC) prior to foreclosure under the
Indenture (to the extent that there is any pledge of property under or pursuant to the Indenture).

3.5 No Legal
Bar. The execution, delivery and performance of this Agreement and the other Loan Documents, the borrowing of the Loans hereunder
and the use of the proceeds thereof will not violate in any material respect any Requirement of Law or any Contractual Obligation
of the Borrower or any of its Significant Subsidiaries and will not result in, or require, the creation or imposition of any Lien
on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other
than any Lien created hereunder).

3.6 Litigation.

(a) No litigation,
investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower,
threatened in writing by or against the Borrower or any of its Significant Subsidiaries or against any of their respective material
properties or revenues with respect to any of the Loan Documents.

(b) No litigation,
investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower,
threatened in writing by or against the Borrower or any of its Significant Subsidiaries or against any of their material respective
properties or revenues, except as disclosed in the Specified Exchange Act Filings, that could reasonably be expected to have a
Material Adverse Effect.

3.7 No Default.
No Default or Event of Default has occurred and is continuing.

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3.8 Taxes.
The Borrower and each of its Significant Subsidiaries has filed or caused to be filed all federal and state returns of income and
franchise taxes imposed in lieu of net income taxes and all other material tax returns that are required to be filed and has paid
all taxes shown to be due and payable on said returns or with respect to any claims or assessments for taxes made against it or
any of its property by any Governmental Authority (other than (i) any amounts the validity of which are currently being contested
in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books
of the Borrower or any of its Significant Subsidiaries, as applicable, and (ii) claims which could not reasonably be expected
to have a Material Adverse Effect). No material tax Liens have been filed against the Borrower or any of its Significant Subsidiaries
other than (A) Liens for taxes which are not delinquent or (B) Liens for taxes which are being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the Borrower or any of
its Significant Subsidiaries, as applicable.

3.9 Federal
Regulations. No part of the proceeds of the Loans will be used for “buying” or “carrying” any “margin
stock” within the respective meanings of each of the quoted terms under Regulation U as now and from time to time hereafter
in effect or for any purpose that violates the provisions of the Regulations of the Board.

3.10 ERISA.
No Reportable Event has occurred during the five year period prior to the date on which this representation is made or deemed made
with respect to any Plan, and each Plan has complied with the applicable provisions of ERISA and the Code, except, in each case,
to the extent that any such Reportable Event or failure to comply with the applicable provisions of ERISA or the Code could not
reasonably be expected to result in a Material Adverse Effect. During the five year period prior to the date on which this representation
is made or deemed made, there has been no (i) failure to make a required contribution to any Plan that would result in the imposition
of a lien or other encumbrance or the provision of security under Section 430 of the Code or Section 303 or 4068 of ERISA, or the
arising of such a lien or encumbrance; or (ii) “unpaid minimum required contribution” or “accumulated funding
deficiency” (as defined or otherwise set forth in Section 4971 of the Code or Part 3 of Subtitle B of Title I of ERISA),
whether or not waived, except, in each case, to the extent that such event could not reasonably be expected to result in a Material
Adverse Effect. No termination of a Single Employer Plan has occurred, and no Lien in favor of the PBGC or a Plan has arisen, during
such five-year period. The present value of all accrued benefits under each Single Employer Plan (based on those assumptions used
to fund such Plans) did not, as of the last annual valuation date prior to the date on which this representation is made or deemed
made, exceed the value of the assets of such Plan allocable to such accrued benefits, except as could not reasonably be expected
to result in a Material Adverse Effect. Neither the Borrower nor any Commonly Controlled Entity has had a complete or partial withdrawal
from any Multiemployer Plan during the five year period prior to the date on which this representation is made or deemed made that
has resulted or could reasonably be expected to result in a material liability under ERISA, and neither the Borrower nor any Commonly
Controlled Entity would become subject to any liability under ERISA if the Borrower or any such Commonly Controlled Entity were
to withdraw completely from all Multiemployer Plans as of the valuation date most closely preceding the date on which this representation
is made or deemed made, except as could not reasonably be expected to result in a Material Adverse Effect. No such Multiemployer
Plan is in Reorganization or Insolvent.

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3.11 Investment
Company Act; Other Regulations. The Borrower is not an “investment company”, or a company “controlled”
by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended. On the date hereof,
the Borrower is not subject to regulation under any Requirement of Law (other than (a) Regulation X of the Board and (b) Sections
701, 817-830, and 851 of the California Public Utilities Code) that limits its ability to incur Indebtedness under this Agreement.

3.12 Use of
Proceeds. The proceeds of the Loans shall be used for general corporate purposes, including repaying commercial paper.

3.13 Environmental
Matters. Except as disclosed in the Specified Exchange Act Filings, the Borrower and its Significant Subsidiaries do not have
liabilities under Environmental Laws or relating to Materials of Environmental Concern that would reasonably be expected to have
a Material Adverse Effect, and, to the knowledge of the Borrower, there are no facts, circumstances or conditions that could reasonably
be expected to give rise to such liabilities.

3.14 Regulatory
Matters. Solely by virtue of the execution, delivery and performance of, or the consummation of the transactions contemplated
by this Agreement, no Lender shall be or become subject to regulation (a) under the FPA or (b) as a “public utility”
or “public service corporation” or the equivalent under any Requirement of Law.

3.15 Sanctions.
To the Borrower’s knowledge, none of the Borrower, any of its Subsidiaries, or any director, officer, agent, Affiliate or
employee of the Borrower or any of its Subsidiaries is currently the subject of any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Borrower will not use the proceeds
of the Loans, or knowingly lend, contribute or otherwise make available such proceeds to any Subsidiary, Affiliate, joint venture
partner or other person or entity, to fund the activities of any person currently the subject of any U.S. sanctions administered
by OFAC.

SECTION 4.  CONDITIONS TO THE CLOSING
DATE

The effectiveness
of this Agreement, and the obligation of each Lender to make a Loan hereunder on the Closing Date, shall not become effective until
the date on which each of the following conditions is satisfied (or waived in accordance with Section 8.1):

(a) Loan Documents.
Each Lender shall have received (i) this Agreement, executed and delivered by the Borrower, the Administrative Agent and each other
Lender and (ii) an executed original or certified copy of each of the other Loan Documents, as applicable.

(b) Consents
and Approvals. All governmental and third party consents and approvals necessary in connection with this Agreement and the
other Loan Documents and the transactions contemplated hereby shall have been obtained and be in full force and effect; and the
Administrative Agent shall have received a certificate of a Responsible Officer to the foregoing effect.

(c) Fees.
The Administrative Agent shall have received all fees required to be paid, and all expenses for which invoices have been presented
(including the reasonable fees and expenses of legal counsel), on or before the Closing Date.

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(d) Closing
Certificate; Certified Articles of Incorporation; Good Standing Certificates. The Administrative Agent shall have received
(i) a certificate of the Borrower, dated the Closing Date, substantially in the form of Exhibit B, with appropriate insertions
and attachments, including the articles of incorporation of the Borrower certified by the Secretary of State of the State of California,
and containing a confirmation by the Borrower that the conditions precedent set forth in this Section 4 have been satisfied and
(ii) a good standing certificate for the Borrower from the Secretary of State of the State of California.

(e) Legal Opinion.
The Administrative Agent shall have received the legal opinion of Hunton & Williams LLP, counsel to the Borrower, in a form
reasonably satisfactory to it.

(f) Representations
and Warranties. Each of the representations and warranties made by the Borrower in this Agreement that does not contain a materiality
qualification shall be true and correct in all material respects on and as of the Closing Date, and each of the representations
and warranties made by the Borrower in this Agreement that contains a materiality qualification shall be true and correct on and
as of the Closing Date (or, to the extent such representations and warranties specifically relate to an earlier date, that such
representations and warranties were true and correct in all material respects, or true and correct, as the case may be, as of such
earlier date).

(g) No Default.
No Default or Event of Default shall have occurred and be continuing or would result from the funding of the Loans.

SECTION 5. AFFIRMATIVE COVENANTS

The Borrower hereby
agrees that, so long as any Loan, any interest on any Loan or any fee payable to any Lender or the Administrative Agent hereunder
remains outstanding, or any other amount then due and payable is owing to any Lender, the Borrower shall and, with respect to Sections
5.3 and 5.6(b), shall cause its Significant Subsidiaries to:

5.1 Financial
Statements. Subject to the last sentence of this Section 5.1, furnish to the Administrative Agent with a copy for each Lender,
and the Administrative Agent shall deliver to each Lender:

(a) as soon as
available, but in any event within 120 days after the end of each fiscal year of the Borrower, a copy of the audited consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such year and the related audited consolidated
statements of operations and cash flows for such year, setting forth in each case in comparative form the figures for the previous
year, reported on without a “going concern” or like qualification or exception, or qualification arising out of the
scope of the audit, by Deloitte & Touche LLP or other independent certified public accountants of nationally recognized
standing; and

(b) as soon as
available, but in any event not later than 60 days after the end of each of the first three quarterly periods of each fiscal
year of the Borrower, the unaudited consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at the end
of such quarter and the related unaudited consolidated statements
of operations and cash flows for such quarter and the portion of the fiscal year through the end of such quarter, setting forth
in each case in

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comparative form
the figures for the previous year, certified by a Responsible Officer as being fairly stated in all material respects (subject
to normal year-end audit adjustments).

All such financial statements shall
be complete and correct in all material respects and shall be prepared in reasonable detail and in accordance with GAAP applied
(except as approved by such accountants or officer, as the case may be, and disclosed in reasonable detail therein) consistently
throughout the periods reflected therein and with prior periods. The Borrower shall be deemed to have delivered the financial statements
required to be delivered to the Administrative Agent and the Lenders pursuant to this Section 5.1 upon the filing of such
financial statements by the Borrower through the SEC’s EDGAR system (or any successor electronic gathering system that is
publicly available free of charge) or the publication by the Borrower of such financial statements on its website.

5.2 Certificates;
Other Information. Furnish to the Administrative Agent with a copy for each Lender (or, in the case of clause (c), the
relevant Lender), and the Administrative Agent shall deliver to each Lender:

(a) within two
days after the delivery of any financial statements pursuant to Section 5.1, (i) a certificate of a Responsible Officer
stating that such Responsible Officer has obtained no knowledge of any Default or Event of Default except as specified in such
certificate and (ii) in the case of quarterly or annual financial statements, a Compliance Certificate, substantially in the
form of Exhibit A, containing all information and calculations reasonably necessary for determining compliance by the Borrower
with the provisions of this Agreement referred to therein as of the last day of the fiscal quarter or fiscal year of the Borrower,
as the case may be;

(b) within five
days after the same are sent, copies of all financial statements and reports that the Borrower sends to the holders of any class
of its debt securities or public equity securities, provided that, such financial statements and reports shall be deemed
to have been delivered upon the filing of such financial statements and reports by the Borrower through the SEC’s EDGAR system
(or any successor electronic gathering system that is publicly available free of charge) or publication by the Borrower of such
financial statements and reports on its website; and

(c) promptly,
such additional financial and other information as any Lender, through the Administrative Agent, may from time to time reasonably
request.

5.3 Payment
of Taxes. Pay all taxes due and payable or any other tax assessments made against the Borrower or any of its Significant Subsidiaries
or any of their respective property by any Governmental Authority (other than (i) any amounts the validity of which are currently
being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided
on the books of the Borrower or any of its Significant Subsidiaries, as applicable, or (ii) where the failure to effect such
payment could not reasonably be expected to have a Material Adverse Effect).

5.4 Maintenance
of Existence; Compliance. (a)(i) Preserve, renew and keep in full force and effect its organizational existence; provided
that the foregoing shall not prohibit any

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merger, consolidation
or amalgamation permitted under Section 6.3 and (ii) take all reasonable action to maintain all rights, privileges and franchises
necessary or desirable in the normal conduct of its business, except, in each case, as otherwise permitted by Section 6.3 and
except, in the case of clause (ii) above, to the extent that failure to do so could not reasonably be expected to have
a Material Adverse Effect; (b) comply with all Contractual Obligations except to the extent that failure to comply therewith could
not, in the aggregate, reasonably be expected to have a Material Adverse Effect and (c) comply with all Requirements of Law except
for any Requirements of Law being contested in good faith by appropriate proceedings and except to the extent that failure to
comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect.

5.5 Maintenance
of Property; Insurance. (a) Keep all property useful and necessary in its business in good working order and condition,
ordinary wear and tear excepted, except to the extent that failure to do so could not, in the aggregate, reasonably be expected
to have a Material Adverse Effect, and (b) maintain with financially sound and reputable insurance companies insurance on
all its material property in at least such amounts and against at least such risks as are usually insured against in the same general
area by companies engaged in the same or a similar business of comparable size and financial strength and owning similar properties
in the same general areas in which the Borrower operates, which may include self-insurance, if determined by the Borrower to be
reasonably prudent.

5.6 Inspection
of Property; Books and Records; Discussions. (a) Keep proper books of records and account in which full, true and correct
entries in conformity with GAAP and all Requirements of Law shall be made of all dealings and transactions in relation to its business
and activities and (b) unless a Default or Event of Default has occurred and is continuing, not more than once a year and
after at least five Business Days’ notice, (i) permit representatives of any Lender to visit and inspect any of its
properties and examine and make abstracts from any of its books and records at any reasonable time to discuss the business, operations,
properties and financial and other condition of the Borrower and its Significant Subsidiaries with officers and employees of the
Borrower and its Significant Subsidiaries and (ii) use commercially reasonable efforts to provide for the Lenders (in the
presence of representatives of the Borrower) to meet with the independent certified public accountants of the Borrower and its
Subsidiaries; provided, that any such visits or inspections shall be subject to such conditions as the Borrower and each
of its Significant Subsidiaries shall deem necessary based on reasonable considerations of safety and security; and provided, further, that neither the Borrower nor any Significant Subsidiary shall be required to disclose to any Lender or its agents
or representatives any information which is subject to the attorney-client privilege or attorney work-product privilege properly
asserted by the applicable Person to prevent the loss of such privilege in connection with such information or which is prevented
from disclosure pursuant to a confidentiality agreement with third parties.

5.7 Notices.
Promptly give notice to the Administrative Agent with a copy for each Lender of, and the Administrative Agent shall deliver such
notice to each Lender:

(a) when known
to a Responsible Officer, the occurrence of any Default or Event of Default;

(b) any change
in the Rating issued by either S&P or Moody’s; and

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(c) the following
events, as soon as possible and in any event within 30 days after the Borrower knows thereof: (i) the occurrence of any
Reportable Event with respect to any Plan which has not been waived, a failure to make any required minimum contribution to a Plan
under Section 412 or 430 of the Code, the creation of any Lien in favor of the PBGC with respect to a Plan or any withdrawal by
the Borrower or any Commonly Controlled Entity from, or the termination, Reorganization or Insolvency of, any Multiemployer Plan
or (ii) the institution of proceedings or the taking of any other material action by the PBGC or the Borrower or any Commonly
Controlled Entity or any Multiemployer Plan with respect to the withdrawal from, or the termination, Reorganization or Insolvency
of, any Plan.

5.8 Maintenance
of Licenses, etc. Maintain in full force and effect any authorization, consent, license or approval of any Governmental Authority
necessary for the conduct of the Borrower’s business as now conducted by it or necessary in connection with this Agreement,
except to the extent the failure to do so could not reasonably be expected to have a Material Adverse Effect.

SECTION 6. NEGATIVE COVENANTS

The Borrower hereby
agrees that, so long as any Loan, or any interest on any Loan or any fee payable to any Lender or the Administrative Agent hereunder
remains outstanding, or any other amount then due and payable is owing to any Lender hereunder or the Administrative Agent, the
Borrower shall not and, with respect to Section 6.2, shall not permit its Significant Subsidiaries to:

6.1 Consolidated
Capitalization Ratio. Permit the Consolidated Capitalization Ratio on the last day of any fiscal quarter, from and after the
last day of the first fiscal quarter ending after the Closing Date, to exceed 0.65 to 1.00.

6.2 Liens.
Create, incur, assume or suffer to exist any Lien upon any assets of the Borrower or any Significant Subsidiary, whether now owned
or hereafter acquired, except for (a) Liens securing the Borrower’s obligations to the Administrative Agent and the
Lenders under this Agreement and the other Loan Documents and (b) Liens permitted by the Indenture.

6.3 Fundamental
Changes. Enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation
or dissolution), or Dispose of all or substantially all of its property or business, except that the Borrower may be merged, consolidated
or amalgamated with another Person or Dispose of all or substantially all of its property or business so long as, after giving
effect to such transaction, (a) no Default or Event of Default shall have occurred and be continuing, (b) either (i) the
Borrower is the continuing or surviving corporation of such merger, consolidation or amalgamation or (ii) the continuing or
surviving corporation of such merger, consolidation or amalgamation, if not the Borrower or the purchaser, as the case may be,
shall have assumed all obligations of the Borrower under the Loan Documents pursuant to arrangements reasonably satisfactory to
the Administrative Agent and (c) the ratings by Moody’s and S&P of the continuing or surviving corporation’s
or purchaser’s, as the case may be, senior, unsecured, non credit-enhanced debt shall be at least the higher of (1) Baa3
from Moody’s and BBB- from S&P and (2) the ratings by such rating agencies of the

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 Borrower’s
senior, unsecured, non credit-enhanced debt in effect before the earlier of the occurrence or the public announcement of such
event.

SECTION 7.  EVENTS OF DEFAULT

If any of the following events
shall occur and be continuing on or after the Closing Date:

(a) the Borrower
shall fail to pay any principal of the Loans when due in accordance with the terms hereof; or the Borrower shall fail to pay any
interest on the Loans, or any other amount payable hereunder or under any other Loan Document, within five Business Days after
any such interest or other amount becomes due in accordance with the terms hereof; or

(b) any representation
or warranty made or deemed made by the Borrower herein or in any other Loan Document or that is contained in any certificate, document
or financial or other statement furnished by it at any time under or in connection with this Agreement or any such other Loan Document
shall prove to have been inaccurate in any material respect on or as of the date made or deemed made, unless, as of any date of
determination, the facts or circumstances to which such representation or warranty relates have changed with the result that such
representation or warranty is true and correct in all material respects on such date; or

(c) the Borrower
shall default in the observance or performance of any agreement contained in Section 6.1 or Section 6.3 of this Agreement;
or

(d) the Borrower
shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document (other
than as provided in paragraphs (a) through (c) of this Section), and such default shall continue unremedied for a period of 30 days
after notice to the Borrower from the Administrative Agent at the request of the Required Lenders; or

(e) the Borrower
or any of its Significant Subsidiaries shall (i) default in making any payment of any principal of any Indebtedness (including
any Guarantee Obligation, but excluding the Loans) on the due date with respect thereto (after giving effect to any period of grace,
if any, provided in the instrument or agreement under which such Indebtedness was created); or (ii) default in making any
payment of any interest on any such Indebtedness beyond the period of grace, if any, provided in the instrument or agreement under
which such Indebtedness was created; or (iii) default in the observance or performance of any other agreement or condition
relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any
other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or (in the case
of all Indebtedness other than Indebtedness under any Swap Agreement) to permit the holder or beneficiary of such Indebtedness
(or a trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice if required, such Indebtedness
to become due prior to its stated maturity or (in the case of any such Indebtedness constituting a Guarantee Obligation) to become
payable; provided, that a default, event or condition described in clause (i), (ii) or (iii) of this paragraph (e)
shall not at any time constitute an Event of Default unless, at such time, one or more defaults, events or conditions of the type
described in clauses (i), (ii) and (iii) of this paragraph (e) shall have occurred and be continuing with respect to
Indebtedness the outstanding

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principal amount
of which exceeds in the aggregate $200,000,000; provided further, that unless payment of the Loans hereunder has already
been accelerated, if such default shall be cured by the Borrower or such Significant Subsidiary or waived by the holders of such
Indebtedness and any acceleration of maturity having resulted from such default shall be rescinded or annulled, in each case, in
accordance with the terms of such agreement or instrument, without any modification of the terms of such Indebtedness requiring
the Borrower or such Significant Subsidiary to furnish security or additional security therefor, reducing the average life to maturity
thereof or increasing the principal amount thereof, or any agreement by the Borrower or such Significant Subsidiary to furnish
security or additional security therefor or to issue in lieu thereof Indebtedness secured by additional or other collateral or
with a shorter average life to maturity or in a greater principal amount, then any Default hereunder by reason thereof shall be
deemed likewise to have been thereupon cured or waived; or

(f) (i) the
Borrower or any of its Significant Subsidiaries shall commence any case, proceeding or other action (A) under any existing
or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors,
seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding up, liquidation, dissolution, composition or other relief with respect to it or
its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for
all or any substantial part of its assets, or the Borrower or any of its Significant Subsidiaries shall make a general assignment
for the benefit of its creditors; or (ii) there shall be commenced against the Borrower or any of its Significant Subsidiaries
any case, proceeding or other action of a nature referred to in clause (i) above that (A) results in the entry of an
order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period
of 60 days; or (iii) there shall be commenced against the Borrower or any of its Significant Subsidiaries any case, proceeding
or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial
part of its assets that results in the entry of an order for any such relief that shall not have been vacated, discharged, or stayed
or bonded pending appeal within 60 days from the entry thereof; or (iv) the Borrower or any of its Significant Subsidiaries
shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; or

(g) a trustee
shall be appointed to administer any Plan under Section 4042 of ERISA, or the PBGC shall institute proceedings to terminate, or
to have a trustee appointed to administer any Plan and such proceedings shall continue undismissed or unstayed and in effect for
a period of 60 days, but only if any such event could reasonably be expected to result in a Material Adverse Effect; or

(h) one or more
judgments or decrees shall be entered against the Borrower or any of its Significant Subsidiaries by a court of competent jurisdiction
involving in the aggregate a liability (not paid or, subject to customary deductibles, fully covered by insurance as to which the
relevant insurance company has not denied coverage) of $200,000,000 or more, and all such judgments or decrees shall not have been
vacated, discharged, stayed or bonded pending appeal within 45 days from the entry thereof unless, in the case of a discharge,
such judgment or decree is due at a later date in one or more payments and the Borrower or such Subsidiary satisfies the

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obligation to make
such payment or payments on or prior to the date such payment or payments become due in accordance with such judgment or decree;
or

(i) there shall have occurred a Change
of Control;

then, and in any such event, (A) if
such event is an Event of Default specified in clause (i) or (ii) of paragraph (f) above with respect to the Borrower,
the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents shall immediately
become due and payable, and (B) if such event is any other Event of Default, with the consent of the Required Lenders the
Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower,
declare the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents
to be due and payable forthwith, whereupon the same shall immediately become due and payable. Except as expressly provided above
in this Section, presentment, demand, protest and all other notices of any kind are hereby expressly waived by the Borrower.

SECTION 8.  MISCELLANEOUS

8.1 Amendments
and Waivers. Neither this Agreement, any other Loan Document, nor any terms hereof or thereof may be amended, supplemented
or modified except in accordance with the provisions of this Section 8.1. The Required Lenders and the Borrower may, or, with
the written consent of the Required Lenders, the Administrative Agent and the Borrower may, from time to time, (a) enter into
written amendments, supplements or modifications hereto and to the other Loan Documents for the purpose of adding any provisions
to this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the Borrower hereunder
or thereunder or (b) waive, on such terms and conditions as the Required Lenders or the Administrative Agent, as the case
may be, may specify in such instrument, any of the requirements of this Agreement or the other Loan Documents or any Default or
Event of Default and its consequences; provided, however, that no such waiver and no such amendment, supplement or modification
shall:

(i) forgive
the principal amount or extend the final scheduled date of maturity of the Loans, reduce the stated rate of any interest or fee
payable hereunder (except in connection with the waiver of applicability of any post-default increase in interest rates (which
waiver shall be effective with the consent of the Required Lenders)) or extend the scheduled date of any payment thereof, in each
case without the written consent of each Lender directly affected thereby;

(ii) eliminate
or reduce the voting rights of any Lender under this Section 8.1 or Section 8.6(a)(i) without the written consent of such
Lender;

(iii) reduce
any percentage specified in the definition of Required Lenders without the written consent of all Lenders;

(iv) amend,
modify or waive any provision of Section 2.10 related to pro rata treatment without the consent of each Lender directly
affected thereby;

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(v) amend,
modify or waive any provision of Section 9 without the written consent of the Administrative Agent; or

(vi) amend,
modify or waive any provision of Section 4 without the consent of all the Lenders.

Any such waiver and
any such amendment, supplement or modification shall apply equally to each of the Lenders and shall be binding upon the Borrower,
the Lenders, the Administrative Agent and all future holders of the Loans. In the case of any waiver, the Borrower, the Lenders
and the Administrative Agent shall be restored to their former position and rights hereunder and under the other Loan Documents,
and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any
subsequent or other Default or Event of Default, or impair any right consequent thereon.

8.2 Notices.

(a) All notices,
requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and,
unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered during the recipient’s
normal business hours, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received during the recipient’s normal business hours, addressed as follows, or to such other address as may be hereafter
notified by the parties hereto:

		Borrower:	Pacific Gas and Electric Company

c/o PG&E Corporation

77 Beale Street
			P.O. Box 770000

San Francisco, California 94177

Attention: Treasurer

Telecopy: (415) 973-9771

Telephone: (415) 973-8968

 

	 	with a copy to: 	Pacific Gas and
Electric Company

c/o PG&E Corporation
			77 Beale Street

P.O. Box 770000

San Francisco, California 94177

Attention: General Counsel

Telecopy: (415) 973-4377

Telephone: (415) 973-5520
	 	Administrative Agent and

Lenders: 	As set forth on Schedule 8.2;

			

 

provided that any notice, request
or demand to or upon the Administrative Agent or any Lender shall not be effective until received.

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(b) Notices and
other communications to the Administrative Agent or the Lenders hereunder may be delivered or furnished by electronic communications
pursuant to procedures approved by the Administrative Agent. The Administrative Agent and the Borrower may each, in its discretion,
agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by
it; provided that approval of such procedures may be limited to particular notices or communications.

(c) Unless the
Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed
received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail
address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying
the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication
is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at
the opening of business on the next business day for the recipient.

8.3 No Waiver;
Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Administrative Agent or any Lender,
any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

8.4 Survival
of Representations and Warranties. All representations and warranties made hereunder, in the other Loan Documents and in any
document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery
of this Agreement and the making of the Loans.

8.5 Payment
of Expenses. The Borrower agrees (a) to pay or reimburse the Administrative Agent and the Lenders for all of their respective
reasonable out-of-pocket costs and expenses incurred in connection with the development, preparation and execution of, and any
amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection
herewith or therewith, and the consummation of the transactions contemplated hereby and thereby, including the reasonable fees
and disbursements of only one counsel and special California regulatory counsel to the Administrative Agent and the Lenders and
filing and recording fees and expenses, with statements with respect to the foregoing to be submitted to the Borrower prior to
the Closing Date (in the case of amounts to be paid on the Closing Date) and from time to time thereafter on a quarterly basis
or such other periodic basis as the Administrative Agent shall deem appropriate, (b) to pay or reimburse each Lender and the Administrative
Agent for all its costs and expenses incurred in connection with the enforcement or preservation of its rights under this Agreement,
the other Loan Documents and any such other documents, including the fees and disbursements of only one counsel to the Administrative
Agent and the Lenders (and, in the case of an actual

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conflict of interest,
one additional counsel of all such persons similarly situated, which counsel is reasonably acceptable to each such person), and
(c) to pay, indemnify, and hold each Lender and the Administrative Agent and their respective officers, directors, employees,
agents and Affiliates (each, an “Indemnitee”) harmless from and against any and all other liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever, whether
brought by the Borrower or any other Person with respect to the execution, delivery, enforcement and performance of this Agreement,
the other Loan Documents and any such other documents, including any of the foregoing relating to the use of proceeds of the Loans
or with respect to the violation of, noncompliance with or liability under, any Environmental Law applicable to the operations
of the Borrower and its Significant Subsidiaries or any of the facilities and properties owned, leased or operated by the Borrower
and its Significant Subsidiaries and the reasonable fees and expenses of one legal counsel in connection with claims, actions
or proceedings by any Indemnitee against the Borrower under any Loan Document (all the foregoing in this clause (c), collectively,
the “Indemnified Liabilities”), provided, that the Borrower shall have no obligation hereunder to any
Indemnitee with respect to Indemnified Liabilities to the extent such Indemnified Liabilities resulted from the gross negligence
or willful misconduct of such Indemnitee as determined in a final judgment by a court of competent jurisdiction. Without limiting
the foregoing, and to the extent permitted by applicable law, the Borrower agrees not to assert and to cause its Significant Subsidiaries
not to assert, and hereby waives and agrees to cause its Significant Subsidiaries to waive, all rights for contribution or any
other rights of recovery with respect to all claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses
of whatever kind or nature, under or related to Environmental Laws, that any of them might have by statute or otherwise against
any Indemnitee. All amounts due under this Section shall be payable not later than 30 days after written demand therefor,
subject to the Borrower’s receipt of reasonably detailed invoices relating thereto. Statements payable by the Borrower pursuant
to this Section shall be submitted to Treasurer (Telephone No. 415- 817-8199/415 267-7000) (Telecopy No. 415- 267-7265/7268),
at the address of the Borrower set forth in Section 8.2 with a copy to Chief Counsel, Corporate (Telephone No. 415- 817-8200)
(Telecopy No. 415- 817-8225) at the address of the Borrower set forth in Section 8.2, or to such other Person or address
as may be hereafter designated by the Borrower in a written notice to the Lender. The agreements in this Section 8.5 and all amounts
due under this Section 8.5 shall survive for two years after the termination of this Agreement and repayment of the Loans and
all other amounts payable hereunder. This Section 8.5 shall not apply with respect to Taxes, other than Taxes that represent claims,
damages, losses, liabilities, costs or expenses arising from non-Tax claims.

8.6 Successors
and Assigns; Participations and Assignments.

(a) The provisions
of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender and the Administrative Agent (and any attempted assignment or transfer by the
Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section 8.6.

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(b) (i) Subject
to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees (each, an “Assignee”)
other than any natural person or holding company, investment vehicle or trust for, or owned and operated for the primary benefit
of a natural person, the Borrower or any of the Borrower’s Affiliates or Subsidiaries, all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Loan at the time owing to it) with the prior written consent
(such consent not to be unreasonably withheld or delayed) of:

(A) the Borrower,
provided that no consent of the Borrower shall be required for an assignment to a Lender, an Eligible Assignee that is an
Affiliate of any Lender or, if an Event of Default has occurred and is continuing, any other Person, and provided further,
that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to
the Administrative Agent within fifteen (15) Business Days after having received notice thereof from the assigning Lender (with
a copy to the Administrative Agent); and

(B) the Administrative
Agent.

(ii) Assignments
shall be subject to the following additional conditions:

(A) except
in the case of an assignment to a Lender, an Eligible Assignee that is an Affiliate of any Lender or an assignment of the entire
remaining amount of the assigning Lender’s Loan, the amount of the Loan of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent)
shall not be less than $10,000,000 (or, if such assignee is an Eligible Assignee that is an Affiliate of a Lender, $5,000,000)
unless each of the Borrower and the Administrative Agent otherwise consent, provided that (1) no such consent of the
Borrower shall be required if an Event of Default has occurred and is continuing and (2) with respect to any Lender party
to this Agreement on the Closing Date, such amounts shall be aggregated in respect of such Lender and any Affiliate of such Lender
that is an Eligible Assignee;

(B) the parties
to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing
and recordation fee of $3,500; and

(C) the Assignee,
if it shall not be a Lender, shall deliver to the Administrative Agent an administrative questionnaire.

(iii) Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) below, from and after the effective date specified in each Assignment
and Assumption the Assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and
Assumption, shall have the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations

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under this
Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections
2.11, 2.12, 2.13 and 8.5 but shall be subject to the limitations set forth therein). Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section 8.6 shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (c) of this Section.

(iv) The
Administrative Agent, acting for this purpose as an agent of the Borrower (and such agency being solely for tax purposes), shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the
names and addresses of the Lenders, each Assignee and the principal amount of the Loan owing to, each Lender and each Assignee
pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive,
in the absence of manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary. The Register shall be available for inspection by the Borrower, any Lender and any Assignee, at any reasonable
time and from time to time upon reasonable prior notice.

(v) Upon
its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an Assignee, the Assignee’s
completed administrative questionnaire (unless the Assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b)
of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein
in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as
provided in this paragraph.

(c) (i) Any Lender
may, without the consent of the Borrower or the Administrative Agent, sell participations to one or more banks or other entities
(other than the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (a “Participant”) in all
or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of the Loan owing to
it); provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender
shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrower,
the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with the
Lender’s rights and obligations under this Agreement. Any agreement pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification
or waiver of any provision of this Agreement; provided that such agreement may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, modification or waiver that (1) forgives the principal amount or extends
the final scheduled date of maturity of the Loan, reduces the stated rate of any interest or fee payable hereunder (except in connection
with the waiver of applicability of any

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post-default increase
in interest rates) and (2) directly affects such Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 2.11, 2.12 and 2.13 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to paragraph (b) of this Section.

(ii) Notwithstanding
anything to the contrary herein, a Participant shall not be entitled to receive any greater payment under Section 2.11 or 2.12
than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Borrower’s prior written consent to such greater payments.
Any Participant that is a Foreign Lender shall not be entitled to the benefits of Section 2.12 unless such Participant complies
with Section 2.12(e).

(iii) Each
Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register
on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s
interest in the Loan of such Lender and other Obligations under the Loan Documents (the “Participant Register”);
provided that the Lender shall have no obligation to disclose all or any portion of the Participant Register (including
the identity of any Participant or any information relating to a Participant’s interest in the Loan and other Obligations
under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Loan or other
Obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant
Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant
Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For
the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining
a Participant Register.

(d) Any Lender
may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or other central bank having
jurisdiction over such Lender, and this Section shall not apply to any such pledge or assignment of a security interest; provided
that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute
any such pledgee or Assignee for such Lender as a party hereto.

(e) The Borrower,
upon receipt of written notice from the relevant Lender, agrees to issue Notes to any Lender requiring Notes to facilitate transactions
of the type described in paragraph (d) above.

8.7 Adjustments;
Set off.

(a) Except to
the extent that this Agreement expressly provides for payments to be allocated to a particular Lender or a particular Assignee,
if any Lender or any Assignee (a “Benefitted Lender”) shall receive any payment of all or part of the Obligations
owing to it hereunder, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by

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set off, pursuant
to events or proceedings of the nature referred to in Section 7(f), or otherwise), in a greater proportion than any such payment
to or collateral received by any other Lender or any other Assignee (a “Non-Benefitted Lender”), if any, in
respect of the Obligations owing to such Non-Benefitted Lender hereunder, such Benefitted Lender shall purchase for cash from the
Non-Benefitted Lenders a participating interest in such portion of the Obligations owing to each Non-Benefitted Lender hereunder,
or shall provide the Non-Benefitted Lenders with the benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably among the Benefit Lender and the Non-Benefitted Lenders;
provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such
Benefitted Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery,
but without interest.

(b) In addition
to any rights and remedies of the Lenders provided by law, including other rights of set-off, each Lender shall have the right,
without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable
law, upon any amount becoming due and payable by the Borrower hereunder (whether at the stated maturity, by acceleration or otherwise),
after any applicable grace period, to set off and appropriate and apply against such amount any and all deposits (general or special,
time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any
branch, Affiliate or agency thereof to or for the credit or the account of the Borrower.

8.8 Counterparts.
This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all
of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature
page of this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. A set
of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

8.9 Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

8.10 Integration.
This Agreement and the other Loan Documents represent the entire agreement of the Borrower, the Administrative Agent and the Lenders
with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by
the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in
the other Loan Documents.

8.11 GOVERNING
LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

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8.12 Submission
To Jurisdiction; Waivers. The Borrower hereby irrevocably and unconditionally:

(a) submits for
itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is
a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the
courts of the City of New York, Borough of Manhattan, State of New York, the courts of the United States for the Southern District
of New York, and appellate courts from any thereof;

(b) consents that
any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue
of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees
not to plead or claim the same;

(c) agrees that
service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to the Borrower at its address set forth in Section 8.2 or at such other
address of which the Administrative Agent shall have been notified pursuant thereto;

(d) agrees that
nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right
to sue in any other jurisdiction; and

(e) waives, to
the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding relating
to this Agreement or any other Loan Document any special, exemplary, punitive or consequential damages.

8.13 Acknowledgments.
The Borrower hereby acknowledges that:

(a) it has been
advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents;

(b) neither the
Administrative Agent nor any Lender has any fiduciary relationship with or duty to the Borrower arising out of or in connection
with this Agreement or any of the other Loan Documents, and the relationship between Administrative Agent and Lenders, on one hand,
and the Borrower, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

(c) no joint venture
is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Borrower and the Lenders.

8.14 Confidentiality.
Each of the Administrative Agent and each Lender agrees to keep confidential in accordance with such party’s customary practices
(and in any event in compliance with applicable law regarding material non-public information) all non-public information provided
to it by the Borrower, the Administrative Agent or any Lender pursuant to or in connection with this Agreement that is designated
by the provider thereof as confidential; provided that nothing herein shall prevent the Administrative Agent or any Lender
from disclosing any such information (a) to the Administrative Agent, any other Lender or any

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Affiliate
thereof, (b) subject to an agreement to comply with the provisions of this Section or substantially equivalent provisions,
to any actual or prospective Transferee, any direct or indirect counterparty to any Swap Agreement (or any professional advisor
to such counterparty) or any credit insurance providers, (c) to its employees, directors, agents, attorneys, accountants
and other professional advisors or those of any of its Affiliates (as long as such attorneys, accountants and other professional
advisors are subject to confidentiality requirements substantially equivalent to this Section), (d) upon the request or demand
of any Governmental Authority, (e) in response to any order of any court or other Governmental Authority or as may otherwise
be required pursuant to any Requirement of Law, (f) if requested or required to do so in connection with any litigation or
similar proceeding, (g) that has been publicly disclosed, (h) to the National Association of Insurance Commissioners
or any similar organization or any nationally recognized rating agency that requires access to information about a Lender’s
investment portfolio in connection with ratings issued with respect to such Lender, or (i) in connection with the exercise
of any remedy hereunder or under any other Loan Document, provided that, in the case of clauses (d), (e) and (f) of
this Section 8.14, with the exception of disclosure to bank regulatory authorities, the Borrower (to the extent legally permissible)
shall be given prompt prior notice so that it may seek a protective order or other appropriate remedy.

8.15 WAIVER
OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AND FOR ANY COUNTERCLAIM THEREIN.

8.16 USA Patriot
Act. Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that
pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow such Lender and the Administrative Agent to
identify the Borrower in accordance with the Act.

8.17 Judicial
Reference. If any action or proceeding is filed in a court of the State of California by or against any party hereto in connection
with any of the transactions contemplated by this Agreement or any other Loan Document, (i) the court shall, and is hereby directed
to, make a general reference pursuant to California Code of Civil Procedure Section 638 to a referee (who shall be a single active
or retired judge) to hear and determine all of the issues in such action or proceeding (whether of fact or of law) and to report
a statement of decision, provided that at the option of any party to such proceeding, any such issues pertaining to a “provisional
remedy” as defined in California Code of Civil Procedure Section 1281.8 shall be heard and determined by the court, and (ii)
without limiting the generality of Section 8.5, the Borrower shall be solely responsible to pay all fees and expenses of any referee
appointed in such action or proceeding.

8.18 No Advisory
or Fiduciary Responsibility. In connection with all aspects of each transactions contemplated hereby (including in connection
with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees that:
(i) (A) the arranging and other services regarding this Agreement provided by the

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Administrative Agent,
the Arrangers and the Lenders are arm’s-length commercial transactions between the Borrower, on the one hand, and the Administrative
Agent, the Arrangers and the Lenders, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory
and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understands and accepts,
the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative
Agent, each Arranger and each Lender is and has been acting solely as a principal and, except as expressly agreed in writing by
the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any other
Person and (B) none of the Administrative Agent, Arrangers or Lenders has any obligation to the Borrower or any of its Affiliates
with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan
Documents; and (iii) the Administrative Agent, the Arrangers and the Lenders and their respective Affiliates may be engaged in
a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and none of the
Administrative Agent, Arrangers or Lenders has any obligation to disclose any of such interests to the Borrower or its Affiliates.
To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may have against the Administrative
Agent, the Arrangers and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with
any aspect of any transaction contemplated hereby other than a breach of the confidentiality provisions set forth in Section 8.14.

SECTION 9. ADMINISTRATIVE AGENT

9.1 Appointment
and Authority. Each of the Lenders hereby irrevocably appoints The Bank of Tokyo Mitsubishi UFJ, Ltd. to act on its behalf
as the administrative agent hereunder and under the other Loan Documents (the “Administrative Agent”) and authorizes
the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative
Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions
of this Section 9 are solely for the benefit of the Administrative Agent and the Lenders, and the Borrower shall not have rights
as a third-party beneficiary of any of such provisions (other than with respect to the Borrower’s rights under Sections 9.8(a)).
It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar
term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom, and is intended to
create or reflect only an administrative relationship between contracting parties.

9.2 Delegation
of Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under
any other Loan Document by or through any one or more sub agents appointed by the Administrative Agent. The Administrative Agent
and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through their respective
Related Parties. The exculpatory provisions of this Section shall apply to any such sub agent and to the Related Parties of the
Administrative Agent and any such sub agent. The Administrative Agent shall not be responsible for the negligence or misconduct
of any sub agents except to the extent that a court of competent jurisdiction

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determines in a
final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection
of such sub agents.

9.3 Exculpatory
Provisions.

(a) The Administrative
Agent shall have no duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties
hereunder shall be administrative in nature. Without limiting the generality of the foregoing, the Administrative Agent shall not:

(i) be subject
to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

(ii) have
any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers contemplated
hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents);
provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel,
may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the
avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law; and

(iii) except
as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person
serving as the Administrative Agent or any of its Affiliates in any capacity.

(b) The Administrative
Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good
faith shall be necessary, under the circumstances as provided in Section 8.1), or (ii) in the absence of its own gross negligence
or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment. The Administrative
Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the Administrative
Agent has received notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default
and stating that such notice is a “notice of default”. In the event that the Administrative Agent receives such a notice,
the Administrative Agent shall give notice thereof to the Lenders. The Administrative Agent shall take such action with respect
to such Default or Event of Default as shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement,
all Lenders); provided that unless and until the Administrative Agent shall have received such directions, the Administrative Agent
may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event
of Default as it shall deem advisable in the best interests of the Lenders.

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(c) The Administrative
Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document,
or (v) the satisfaction of any condition set forth in Section 4 or elsewhere herein, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent.

9.4 Reliance
by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message,
internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone
and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected
by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

9.5 Non-Reliance
on Agents and Other Lenders. Each Lender acknowledges that it has, independently and without reliance upon the Administrative
Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently
and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents
and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder,
the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning
the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of the Borrower or any of
its Affiliates that may come into the possession of the Administrative Agent or any of its officers, directors, employees, agents,
attorneys in fact or Affiliates.

9.6 Indemnification.
The Lenders agree to indemnify the Administrative Agent in its capacity as such (to the extent not reimbursed by the Borrower and
without limiting the obligation of the Borrower to do so), ratably according to their respective percentages of the unpaid principal
amount of the Loans on the date on which indemnification is sought under this Section (or, if indemnification is sought after the
date upon which the Loans have been paid in full, ratably in accordance with such percentages immediately prior to such date),
from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever that may at any time (whether before or

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after the payment
of the Loans) be imposed on, incurred by or asserted against the Administrative Agent in any way relating to or arising out of,
this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by the Administrative Agent under or in connection with any of the
foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of
a court of competent jurisdiction to have resulted from the Administrative Agent’s gross negligence or willful misconduct.

9.7 Administrative
Agent in Its Individual Capacity. The Person serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and the
terms “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates
may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for,
and generally engage in any kind of business with, the Borrower or any Subsidiary or other Affiliate thereof as if such Person
were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

9.8 Successor
Administrative Agent.

(a) The Administrative
Agent may resign as Administrative Agent upon 10 days’ notice to the Lenders and the Borrower. If the Administrative Agent
shall resign as Administrative Agent under this Agreement and the other Loan Documents, then the Required Lenders shall appoint
from among the Lenders a successor agent for the Lenders, which successor agent shall (unless an Event of Default under Section
7(f) with respect to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower (which approval
shall not be unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights, powers and duties of
the Administrative Agent, and the term “Administrative Agent” shall mean such successor agent effective upon such appointment
and approval, and the former Administrative Agent’s rights, powers and duties as Administrative Agent shall be terminated,
without any other or further act or deed on the part of such former Administrative Agent or any of the parties to this Agreement
or any holders of the Loans. If no successor agent has accepted appointment as Administrative Agent by the date that is 10 days
following a retiring Administrative Agent’s notice of resignation (the “Resignation Effective Date”), the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform
all of the duties of the Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent
as provided for above. After any retiring Administrative Agent’s resignation as Administrative Agent, the provisions of Section
9.7 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this
Agreement and the other Loan Documents.

(b) With effect
from the Resignation Effective Date (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder
and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent

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on behalf
of the Lenders under any of the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral security
until such time as a successor Administrative Agent is appointed) and (2) except for any indemnity payments or other amounts then
owed to the retiring Administrative Agent, all payments, communications and determinations provided to be made by, to or through
the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders
appoint a successor Administrative Agent as provided for above. Upon the acceptance of a successor’s appointment as Administrative
Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the
retiring Administrative Agent (other than any rights to indemnity payments or other amounts owed to the retiring Administrative
Agent as of the Resignation Effective Date), and the retiring Administrative Agent shall be discharged from all of its duties
and obligations hereunder or under the other Loan Documents. The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the
retiring or removed Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this
Section and Sections 2.13 and 8.5 shall continue in effect for the benefit of such retiring Administrative Agent, its sub agents
and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring
Administrative Agent was acting as Administrative Agent.

9.9 Administrative
Agent May File Proofs of Claim. In case of the pendency of any proceeding under any Debtor Relief Law, the Administrative Agent
(irrespective of whether the principal of the Loans shall then be due and payable as herein expressed or by declaration or otherwise
and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered
(but not obligated) by intervention in such proceeding or otherwise:

(a) to file
and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations
that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the
Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the
Administrative Agent under Sections 2.13 and 8.5 and any fee letter with the Borrower) allowed in such judicial proceeding; and

(b) to collect
and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender
to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and counsel, and any
other amounts due the Administrative Agent under Sections 2.13 and 8.5 and any fee letter with the Borrower.

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9.10 No Other
Duties, Etc. Anything herein to the contrary notwithstanding, neither Arranger shall have any powers, duties or responsibilities
under this Agreement or any of the other Loan Documents, except in its respective capacity, as applicable, as the Administrative
Agent or a Lender.

[Remainder of page intentionally left
blank. Signature pages follow.]

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IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

	 	PACIFIC GAS AND ELECTRIC COMPANY	 
	 	 	 
	 	By: 	/s/ Nicholas M. Bijur	 
	 	Name:  Nicholas M. Bijur 	 
	 	Title:    Vice President and Treasurer 

 	 

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        THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as Administrative Agent
        and as a Lender

        	 
	 	 	 	 	 
	 	By:	/s/ Jeffrey Flagg	 
	 	Name:  	Jeffrey Flagg	 
	 	
        Title:
	Director
	 
	 	 	 
	 	
        U.S. BANK NATIONAL ASSOCIATION, as a Lender

        	 
	 	 	 
	 	By:	/s/ Holland H. Williams	 
	 	Name:	Holland H. Williams	 
	 	Title:	Vice President	 

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SCHEDULE 8.2

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

 

	1. 	a) Legal Name:	 	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	 	b) Address:	 	1221 Avenue of the Americas
	 	 	 	 	New York, NY 10020-1104
	 	 	 	 	 
	2.	Credit & Legal Docs Contacts:	 	Financial Information
	 	 	 	 	 
	 	 	Portfolio Manager:	 	Jeffrey Flagg, Vice President
	 	 	 	 	445 S. Figueroa Street, 15th Floor
	 	 	 	 	Los Angeles, CA 90071
	 	 	Telephone No.:	 	213-236-6911
	 	 	Email address:	 	jflagg@us.mufg.jp
	 	 	 	 	 
	 	 	Relationship Manager	 	Viet-Linh Fujitaki, Vice President
	 	 	 	 	U.S. Wholesale Banking - Power & Utilities
	 	 	 	 	445 S. Figueroa Street, 15th Floor
	 	 	 	 	Los Angeles, CA 90071
	 	 	Telephone No.:	 	213-236-6254
	 	 	Email address:	 	vfujitaki@us.mufg.jp
	 	 	 	 	 
	 	 	Agency Contact:	 	Lawrence Blat
	 	 	 	 	1221 Avenue of the Americas
	 	 	 	 	New York, NY 10020-1104
	 	 	Telephone No.:	 	212-405-6620
	 	 	Email address:	 	lbat@us.mufg.jp
	 	 	 	 	AgencyDesk@us.mufg.jp
	 	 	 	 	 
	3.	Operations Contact:	 	Borrowings, Paydowns, Interest, Fees, etc.
	 	 	 	 	 
	 	 	Contact:	 	Winslow Ogbourne
	 	 	 	 	Loan Operations Department
	 	 	Telephone No.:	 	201-413-8570
	 	 	Fax Nos.:	 	201-521-2327
	 	 	 	 	201-521-2305
	 	 	Email Address:	 	LODAgencyServices@us.mufg.jp
	 	 	 	 	wogbourne@us.mufg.jp 
	 	 	 	 	 
	4.	Payment Instruction:	 	 
	 	 	 	 
	 	 	Payment via Fed Wire to:	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. 
	 	 	ABA No.:	 	0260-0963-2
	 	 	A/C #:	 	97770191
	 	 	Attention:	 	Agency Desk
	 	 	Reference:	 	Pacific Gas and Electric Company

 

Schedule 8.2

    	 

    	

    

U.S. BANK NATIONAL ASSOCIATION

 

	1.	a) Legal Name:	 	U.S. Bank National Association
	 	b) Address:	 	800 Nicollet Mall
	 	 		 	Minneapolis, MN 55402
	 	 	 	 	 
	2.	Credit & Legal Docs Contacts:	 	Financial Information
	 	 	 	 	 
		 	Primary Credit Contact:	 	Holland H. Williams, Vice President
	 	 	 	 	101 S. Capitol Blvd.
	 	 	 	 	Boise, ID  83702
	 	 	Telephone No.:	 	208-383-7565
	 	 	Email address:	 	hollandhuffman.williams@usbank.com
	 	 	 	 	 
		 	Secondary Credit Contact:	 	Raymond J. Palmer, Sr. Vice President
	 	 	 	 	461 Fifth Ave., 8th Floor
	 	 	 	 	New York, NY 10017
	 	 	Telephone No.:	 	646-935-4564
	 	 	Email address:	 	raymond.palmer@usbank.com
	 	 	 	 	 
	3.	Operations Contact:	 	CLS Syndication Services
	 	 	 	 	400 City Center
	 	 	 	 	Oshkosh, WI 54901
	 	 	Telephone No.:	 	920-237-7601
	 	 	Fax No.:	 	920-237-7993
		 	Email Address:	 	CLSSyndicationServicesTeam@usbank.com
	 	 	 	 	 
	4.	Payment Instruction:	 	 
	 	 	 	 	 
	 	 	Payment via Fed Wire to:	 	U.S. BANK, N.A.
	 	 	ABA No.:	 	091000022
	 	 	A/C #:	 	0068542160600
	 	 	Attention:	 	Syndication Team
	 	 	Reference:	 	Pacific Gas and Electric Company
	 	 	 	 	 

Schedule 8.2

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