Document:

EX-4.1

 Exhibit 4.1 
  

 
  

SOUTHERN CALIFORNIA GAS 

COMPANY 
 TO 

U.S. BANK NATIONAL ASSOCIATION 

(successor by merger to U.S. Bank Trust National Association, 

formerly known as First Trust of California, National Association) 

TRUSTEE 
  

 
 SUPPLEMENTAL
INDENTURE 
 To Indenture dated October 1, 1940 

 
  

Dated as of May 15, 2018 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	PAGE	 
		
	PARTIES 	  	 	1	 
		
	RECITALS 	  	 	1	 
		
	GRANTING CLAUSES 	  	 	3	 
		
	HABENDUM AND DECLARATION OF TRUST	  	 	5	 
			
	ARTICLE I	  	 AMOUNT, FORM, NUMBERING,
DENOMINATION, TRANSFER AND EXCHANGE OF SERIES UU BONDS, DUE 2048
	  	 	5	 
			
	SECTION 1.01.	  	AUTHORIZED AMOUNT OF SERIES UU BONDS, DUE 2048	  	 	5	 
			
	SECTION 1.02.	  	SERIES UU BONDS, DUE 2048; ISSUABLE AS FULLY REGISTERED BONDS	  	 	5	 
			
	SECTION 1.03.	  	GLOBAL SECURITIES	  	 	6	 
			
	SECTION 1.04.	  	FORM OF LEGEND FOR GLOBAL SECURITY	  	 	7	 
			
	SECTION 1.05.	  	FORM OF REGISTERED BONDS AND CERTIFICATE	  	 	8	 
			
	SECTION 1.06.	  	OTHER PROVISIONS AND ENDORSEMENTS	  	 	8	 
			
	SECTION 1.07.	  	DENOMINATIONS; NUMBER	  	 	8	 
			
	SECTION 1.08.	  	EXCHANGEABILITY OF SERIES UU BONDS, DUE 2048	  	 	8	 
			
	SECTION 1.09.	  	OFFICES OR AGENCIES FOR PAYMENT, REGISTRATION, TRANSFER AND EXCHANGE OF
SERIES UU BONDS, DUE 2048	  	 	8	 
			
	SECTION 1.10.	  	CERTAIN CONDITIONS AS TO TRANSFER, ETC., OF SERIES UU BONDS, DUE 2048	  	 	8	 
			
	ARTICLE II	  	 INTEREST, MATURITY DATE, REDEMPTION
AND CERTAIN OTHER PROVISIONS OF SERIES UU BONDS, DUE 2048
	  	 	9	 
			
	SECTION 2.01.	  	INTEREST RATE, MATURITY DATE AND PLACES AND MEDIUM OF PAYMENT OF
SERIES UU BONDS, DUE 2048	  	 	9	 
			
	SECTION 2.02.	  	REDEMPTION OF SERIES UU BONDS, DUE 2048	  	 	9	 
			
	SECTION 2.03.	  	CANCELLATION OF SERIES UU BONDS, DUE 2048	  	 	9	 
			
	SECTION 2.04.	  	OTHER PROVISIONS OF SERIES UU BONDS, DUE 2048	  	 	9	 
			
	SECTION 2.05.	  	RENEWAL FUND FOR SERIES UU BONDS, DUE 2048	  	 	9	 

  
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	SECTION 2.06.	  	DEFEASANCE OF SERIES UU BONDS, DUE 2048	  	 	9	 
			
	ARTICLE III	  	SUNDRY PROVISIONS	  	 	11	 
			
	SECTION 3.01.	  	 TRUSTEE NOT RESPONSIBLE FOR
RECITALS; RECORDATION OF SUPPLEMENTAL INDENTURE AS REQUIRED BY LAW
	  	 	11	 
			
	SECTION 3.02.	  	DATE OF SUPPLEMENTAL INDENTURE AND SERIES UU BONDS, DUE 2048, ARE DATES
OF IDENTIFICATION	  	 	11	 
			
	SECTION 3.03.	  	SUPPLEMENTAL INDENTURE DEEMED TO BE PART OF BASE INDENTURE	  	 	11	 
			
	SECTION 3.04.	  	TRUSTEE ACCEPTS TRUSTS ON SAME TERMS EXPRESSED IN BASE INDENTURE	  	 	11	 
			
	SECTION 3.05.	  	EXECUTION OF SUPPLEMENTAL INDENTURE IN COUNTERPARTS	  	 	11	 
			
	SECTION 3.06.	  	DEFINED TERMS.	  	 	11	 
			
	SECTION 3.07.	  	CONFLICTING PROVISIONS.	  	 	12	 
			
	SECTION 3.08.	  	GOVERNING LAW.	  	 	12	 
			
	SECTION 3.09.	  	OTHER SUNDRY PROVISIONS.	  	 	12	 

 TESTIMONIUM 

SIGNATURES AND SEALS 

EXHIBIT A 

  
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 THIS SUPPLEMENTAL INDENTURE, dated as of May 15, 2018 (this
“Supplemental Indenture”), is made and entered into in the City of Los Angeles, State of California by and between SOUTHERN CALIFORNIA GAS COMPANY, a corporation duly organized and existing under the laws of the State of California,
and having its principal place of business in the City of Los Angeles, State of California (hereinafter sometimes called the “Corporation”) and U.S. BANK NATIONAL ASSOCIATION (successor by merger to U.S. Bank Trust National
Association, formerly known as First Trust of California, National Association), an association duly organized and existing under the laws of the United States of America and having a corporate trust office in the City and County of Los Angeles,
State of California (hereinafter, together with its predecessors and successors, if any, as trustees under the Indenture referred to below, sometimes called the “Trustee”). 

WITNESSETH: 

WHEREAS, the Corporation has executed and delivered to the Trustee a certain First Mortgage Indenture (hereinafter referred to
as the “Base Indenture”) dated October 1, 1940, to secure bonds of the Corporation designated generally as its “First Mortgage Bonds” to be issued from time to time in one or more series, any of which series
may vary from any other as to certain particulars specified in Section 2.01 of the Base Indenture, and the Corporation has executed and delivered to the Trustee supplemental indentures dated, respectively, as of July 1, 1947, May 1,
1948, June 1, 1950, April 1, 1952, August 1, 1955, June 1, 1956, December 1, 1956, July 1, 1957, October 1, 1959, July 1, 1963, September 1, 1964, June 1, 1965, December 1, 1966, October 1,
1970, August 1, 1972, September 1, 1972, October 1, 1974, May 1, 1976, October 1, 1977, November 1, 1979, February 1, 1981, September 15, 1981, April 1, 1982, August 15, 1983, May 18, 1984,
December 16, 1985, March 1, 1986, November 15, 1986, December 1, 1986, January 15, 1988, June 15, 1988, November 1, 1988, December 1, 1990, October 1, 1991, August 15, 1992, December 15, 1992,
March 1, 1993, June 15, 1993, November 1, 1993, November 15, 1993, October 1, 2002, October 17, 2003, December 15, 2003, December 10, 2004, November 18, 2005, November 21, 2008, November 18,
2010, September 21, 2012, March 13, 2014, September 11, 2014, June 18, 2015, June 18, 2015 and June 3, 2016 supplementing and amending the Base Indenture (each, a “Prior Supplemental Indenture,” and the
Base Indenture together with all Prior Supplemental Indentures and this Supplemental Indenture being herein collectively referred to as the “Indenture”); and 

WHEREAS, the Base Indenture and the Prior Supplemental Indentures dated, respectively, as of July 1, 1947, May 1,
1948, June 1, 1950, April 1, 1952 and August 1, 1955, are recorded in the office of the County Recorder of the Counties listed below in the Official Records thereof, to the extent stated in the Prior Supplemental Indenture dated as of
June 1, 1956; the Prior Supplemental Indentures dated, respectively, as of June 1, 1956 and December 1, 1956, are so recorded as stated in the Prior Supplemental Indenture dated as of July 1, 1957; the Prior Supplemental
Indenture dated as of July 1, 1957 and each subsequently dated Prior Supplemental Indenture (other than the Prior Supplemental Indenture dated as of June 3, 2016) is so recorded as stated in the Prior Supplemental Indenture dated as of the
next succeeding date; and the Prior Supplemental Indenture dated as of June 3, 2016 is recorded in the offices of the County Recorders in the Counties of the State of California, as follows: 

  
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	 County
	  	 Reference
	  	 Date

			
	Fresno	  	Official Records, Document 2016-0073546-00	  	June 9, 2016
			
	Imperial	  	Official Records, Document 2016010996	  	June 10, 2016
			
	Kern	  	Official Records, Document 000216073359	  	June 8, 2016
			
	Kings	  	Official Records, Document 1610193	  	June 15, 2016
			
	Los Angeles	  	Official Records, Document 20160653682	  	June 7, 2016
			
	Orange	  	Official Records, Document 2016000255843	  	June 7, 2016
			
	Riverside	  	Official Records, Document 2016-0233873	  	June 8, 2016
			
	San Bernardino	  	Official Records, Document 2016-0223656	  	June 8, 2016
			
	San Diego	  	Official Records, Document 2016-0279974	  	June 8, 2016
			
	San Luis Obispo	  	Official Records, Document 2016026869	  	June 10, 2016
			
	Santa Barbara	  	Official Records, Document 2016-0028670	  	June 9, 2016
			
	Tulare	  	Official Records, Document 2016-0033426	  	June 9, 2016
			
	Ventura	  	Official Records, Document 20160609-00080525-0	  	June 9, 2016

 WHEREAS, the Base Indenture and the Prior Supplemental Indentures dated, respectively, as of
July 1, 1947, August 1, 1955, December 1, 1956, June 1, 1965, August 1, 1972, May 1, 1976 and September 15, 1981, copies of each of which were attached as Exhibit B to the Prior Supplemental Indenture dated
as of September 11, 2014 recorded in the offices of the County Recorders of San Diego County and San Luis Obispo County, are recorded in such counties to the extent stated in the Prior Supplemental Indentures dated as of June 18, 2015; and

 WHEREAS, bonds of the Corporation of eight (8) series designated, respectively, as its “First Mortgage Bonds,
Series KK, due 2035,” “First Mortgage Bonds, Series MM, due 2040,” “First Mortgage Bonds, Series NN, due 2042,” “First Mortgage Bonds, Series OO, due 2044,” “First Mortgage Bonds, Series PP, due 2024,”
“First Mortgage Bonds, Series QQ, due 2018,” “First Mortgage Bonds, Series RR, due 2025” and “First Mortgage Bonds, Series TT, due 2026” are outstanding as a part of the First Mortgage Bonds referred to in the
Indenture, each such series of bonds, unless and until the taking of further appropriate action by the Board of Directors of the Corporation, being without limitation as to aggregate authorized principal amount; and 

WHEREAS, pursuant to the provisions of Sections 2.01 and 2.02 of the Indenture, the Board of Directors has, by resolution duly
adopted and delivered to the Trustee, authorized the creation, as a part of the First Mortgage Bonds referred to in the Indenture, a new series of bonds designated “First Mortgage Bonds, Series UU, due 2048” (the “Series UU
Bonds”), of the form, terms and provisions provided herein, which new series of bonds, unless and until the taking of 

  
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further appropriate action by the Board of Directors, is to be without limitation as to aggregate authorized principal amount and of which series of bonds in the aggregate principal amount of
$400,000,000 are to be presently issued; and 
 WHEREAS, under the provisions of Sections 2.02 and 16.01 of the Indenture,
the Corporation and the Trustee may execute and deliver a Supplemental Indenture (i) to set forth the particulars, permitted by Section 2.01 of the Indenture, as to which the Series UU Bonds may vary from the bonds of the other series of
the First Mortgage Bonds, and (ii) for any purpose not inconsistent with the terms of the Indenture; and 
 WHEREAS,
the making, executing, delivering and recording of this Supplemental Indenture have been duly authorized by proper corporate action of the Corporation; and 

WHEREAS, the issuance of the Series UU Bonds and the encumbrance of the Corporation’s property to secure the Series UU
Bonds pursuant to this Supplemental Indenture have been authorized by the Public Utilities Commission of the State of California. 

NOW, THEREFORE, in consideration of the foregoing premises and of other good and valuable consideration, receipt of which is
hereby acknowledged, and in order: (a) to set forth or specify (i) the form of the fully registered Series UU Bonds, and the form of the legend to be endorsed on all Series UU Bonds, and (ii) the terms and provisions of the Series UU
Bonds, including the particulars thereof which vary from the bonds of the other series of the First Mortgage Bonds; and (b) further to secure the payment of the principal of and premium, if any, and interest on the bonds of the Corporation now
or at any time hereafter outstanding under the Indenture, including specifically, but without limitation, all of the First Mortgage Bonds now outstanding and the $400,000,000 aggregate principal amount of Series UU Bonds and further to secure the
observance and performance of all of the covenants, agreements and conditions contained in the Indenture, and without in any way limiting the generality or effect of the Indenture insofar as by any provision thereof any of the property therein or
hereafter described or referred to is now subject or intended to be subject to the lien and operation thereof, but to such extent confirming such lien and operation, the Corporation has executed and delivered this Supplemental Indenture and has
granted, bargained, sold, released, conveyed, mortgaged, assigned, transferred, pledged, set over and confirmed, and does hereby grant, bargain, sell, release, convey, mortgage, assign, transfer, pledge, set over and confirm unto U.S. Bank National
Association, the Trustee, and to its successors or successors in the trust created by the Indenture, and to its and their assigns, forever, with power of sale, subject, to the extent applicable by the terms of the Indenture to any of the properties
hereinafter referred to or described, to the exceptions (other than as expressly provided in the granting clauses of the Prior Supplemental Indentures dated respectively as of June 1, 1956, July 1, 1957, October 1, 1959, July 1,
1963, September 1, 1964 and December 1, 1966 with respect to exception (f) set forth on page 67 of the Base Indenture and reading as follows: “(f) Any gas and/or oil acreage, gas and/or oil wells, gas and/or oil reserves, or gas
and/or oil leaseholds hereafter acquired by the Corporation, or any property or equipment now or hereafter owned by the Corporation and used for the development of gas and/or oil acreage or for the drilling for or production of gas and/or oil from
such acreage;” which exception (f) is by said granting clauses expressly made inapplicable to certain therein specified parcels of property), reservations, conditions, terms and provisions provided in the Indenture with respect to
properties subject or intended to be subject 

  
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thereto, all of the properties and assets of the Corporation, real, personal and mixed, of every kind and character, whether now or hereafter owned by the Corporation and wheresoever situated,
including, without in any way limiting or modifying the generality or effect of the foregoing, all and singular, the following properties: 

FIRST: All and singular the plants, properties, equipment, real and personal property, estates, interests, goodwill,
generating, transmission, feeding, storing, and distribution systems, and utilities of the Corporation situated in the Counties of Fresno, Imperial, Kern, Kings, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa
Barbara, Tulare and Ventura, and elsewhere, in the State of California, with all and singular the franchises, ordinances, grants, easements, licenses, powers, immunities, permits, privileges, appurtenances, tenements and other rights and property
thereunto appertaining or belonging, as the same now exist and as the same and any and all parts thereof may hereafter exist or be improved, added to, enlarged, extended or acquired in said counties or elsewhere in said state or any other state or
states. 
 SECOND: All other property, real, personal and mixed, of every kind, nature and description (including, without
in any way limiting the effect or the generality hereof, all facilities; all stocks, bonds and other securities from time to time conveyed, assigned, transferred, mortgaged or pledged on behalf of the Corporation, or with its consent, to the Trustee
in the manner and for the purposes as provided in the Indenture; all gas manufacturing plants, boilers, engines, compressors, motors, pumps, generators, gasholders, tanks, appliances, oil storage facilities, gas storage facilities, wells, buildings,
structures, plants, works and other improvements; all gas transmission and distributing lines and systems; all meters and regulators and all other apparatus, machinery, appliances, tools, furniture, fixtures, supplies, facilities and utilities and
other personal property; or any right or interest in any thereof; all business and goodwill, rights, consents, franchises, ordinances, licenses, agreements, contracts, permits, easements, rights of way, leases and leasehold interests; all powers,
grants, privileges and immunities to construct, operate and maintain lines and other facilities or properties for conveying gas or other commodity or utility for any purpose or purposes through, under and over public streets or highways, or public
or private places or property; all reversions, remainders, tolls, incomes, revenues, earnings, rents, issues and profits of any property, real, personal and mixed; and all other classes and types of property described or referred to in the
Indenture), now or hereafter owned, held, possessed, acquired or enjoyed by or in any manner conferred upon or appertaining to the Corporation, including the interest of the Corporation in all leases now or hereafter owned by it, together with all
and singular the tenements, hereditaments, and appurtenances belonging or in any way appertaining to each and every part of any and all property subject or intended to be subject to the lien and operation of the Indenture, and the reversion and
reversions, remainder and remainders, tolls, incomes, revenues, earnings, rents, issues and profits thereof. 
 SAVING AND
EXCEPTING, however, from the property hereby mortgaged, conveyed in trust and/or pledged, all property, whether now owned by the Corporation or hereafter acquired by it, expressly saved and excepted from the lien of the Indenture and therein
referred to as the “excepted property” (except as otherwise expressly provided in any Prior Supplemental Indenture hereinabove mentioned with respect to exception (f) of said “excepted property”),

  
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unless and until, upon the occurrence of an event of default under the Indenture, the Trustee, or any receiver appointed thereunder, shall take possession of any or all of such excepted property.

 TO HAVE AND TO HOLD in trust with power of sale for the equal and proportionate benefit and security of all holders of
bonds of the Corporation, now or hereafter outstanding under the Indenture as from time to time in effect, and for the enforcement and payment of said bonds and premium, if any, and interest thereon when payable, and the performance of and
compliance with the covenants and conditions of the Indenture as from time to time in effect, without any preference, distinction or priority as to lien or otherwise of any of said bonds over any others thereof by reason of the difference in the
time of the actual issue, sale or negotiation thereof, or for any other reason whatsoever, except as otherwise expressly provided in the Indenture as from time to time in effect, so that each and every such bond shall have the same lien and so that
the principal of and premium, if any, and interest on every such bond shall, subject to the terms thereof, be equally and proportionately secured by said lien, as if such bond had been made, executed, delivered, sold and negotiated simultaneously
with the execution and delivery of the Base Indenture. 
 IT IS HEREBY COVENANTED, DECLARED, AND AGREED by and between the
parties hereto that all such bonds are issued, authenticated and delivered, or are to be issued, authenticated and delivered, and that all property subject, or to become subject, to the Indenture is to be held, subject to the covenants, conditions,
uses and trusts therein set forth. 
 ARTICLE I 

AMOUNT, FORM, NUMBERING, DENOMINATION, 

TRANSFER AND EXCHANGE OF 
 SERIES UU
BONDS, Due 2048 
 Section 1.01.    The Series UU Bonds may be issued at any time or from time to
time upon and subject to the terms and provisions of the Indenture, and $400 million aggregate principal amount of Series UU Bonds are to be presently issued. Unless and until the taking of further appropriate action by the Board of Directors
of the Corporation the Series UU Bonds shall be without limitation as to aggregate authorized principal amount and, without limitation to the foregoing, the Corporation may from time to time, without notice to or the consent of the registered
holders of the Series UU Bonds, but upon and subject to the terms and provisions of the Indenture, increase the principal amount of Series UU Bonds under the Indenture and issue such increased principal amount, or any portion thereof. Any additional
Series UU Bonds so issued shall have the same form and terms (other than offering price, the date of original issuance and, under certain circumstances, the date from which interest thereon shall begin to accrue and the first Interest Payment Date
(as defined below)) as the Series UU Bonds previously issued and shall form a single series of First Mortgage Bonds under the Indenture with the previously issued Series UU Bonds. 

Section 1.02.    The Series UU Bonds shall be issued only as fully registered bonds without coupons.
In addition, the Series UU Bonds may be issuable in whole or in part in the form of one or more securities that evidence all or part of the bonds of such series and are registered in the name of a depositary (as defined below) or a nominee thereof
for such series 

  
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(each, a “Global Security”) and, in such case, the Board of Directors of the Corporation (or an authorized officer designated by the Board of Directors) shall appoint a clearing
agency registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), designated to act as depositary (a “depositary”) for such Global Securities; the initial depositary so appointed is The
Depository Trust Company. 
 Section 1.03.    In the event the Series UU Bonds are issued as Global
Securities the following provisions, in addition to the provisions of the Indenture, shall apply: 
 (a)
    Each Global Security authenticated under the Indenture shall be registered in the name of the depositary designated for such Global Security or a nominee thereof and delivered to such depositary or a nominee thereof or
custodian therefor, and each such Global Security shall constitute a single Series UU Bond for all purposes of this Supplemental Indenture. 

(b)     Notwithstanding any other provision in this Supplemental Indenture, no Global
Security may be exchanged in whole or in part for Series UU Bonds registered, and no transfer of a Global Security in whole or in part may be registered, in the name of any person other than the depositary for such Global Security or a nominee
thereof unless (A) such depositary has notified the Corporation that it is unwilling or unable to continue as depositary for the Global Security or Global Securities, as the case may be, representing the Series UU Bonds and a successor
depositary has not been appointed by the Corporation within 90 days of receipt by the Corporation of such notification, (B) if at any time the depositary ceases to be a clearing agency registered under the Exchange Act at a time when the
depositary is required to be so registered to act as such depositary and no successor depositary shall have been appointed by the Corporation within 90 days after it became aware of such cessation, (C) the Corporation, in its sole discretion,
executes and delivers to the Trustee a written order signed in the name of the Corporation by its Chairman of the Board, its President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary to the
effect that the Global Securities shall be exchangeable as described below, or (D) an “event of default” (as defined in Section 1.02 of the Indenture) has occurred and is continuing with respect to the Series UU Bonds. If any of
the events described in clauses (A) through (D) of the preceding sentence occur, the beneficial owners of interests in such Global Securities will be entitled to exchange those interests for definitive Series UU Bonds and, without unnecessary
delay but in any event not later than the earliest date on which those interests may be so exchanged, the Corporation will prepare and deliver to the Trustee definitive Series UU Bonds in such form and denominations as are required by or pursuant to
the Indenture, containing identical terms as and in an aggregate principal amount equal to the aggregate principal amount of such Global Securities, such bonds to be duly executed by the Corporation. On or after the earliest date on which such
beneficial interests may be so exchanged, such Global Securities shall be surrendered from time to time by the depositary as shall be specified in the order from the Corporation with respect thereto (which the Corporation agrees to deliver) to the
Trustee as the Corporation’s agent for such purpose, and in accordance with any instructions given to the Trustee and the depositary by the Corporation (which instructions shall be in writing but need not be contained in or accompanied by an
officers’ certificate or be accompanied by an opinion 

  
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of counsel), to be exchanged, in whole or in part, for definitive Series UU Bonds as described above without charge. The Trustee shall authenticate and make available for delivery, in exchange
for each portion of each surrendered Global Security, a like aggregate principal amount of definitive Series UU Bonds of authorized denominations as the portion of such Global Security to be exchanged. Promptly following any such exchange in part,
such Global Security shall be returned by the Trustee to such depositary or its custodian. If a definitive Series UU Bond is issued in exchange for any portion of a Global Security after the close of business at the place where such exchange occurs
on or after (i) any regular record date for a regularly scheduled interest payment date (an “Interest Payment Date”) for such bond and before the opening of business at that place of exchange on such Interest Payment Date, or
(ii) any special record date for the payment of interest for such bond which was not punctually paid or duly provided for on any Interest Payment Date (“Defaulted Interest”) and before the opening of business at such place of
exchange on the related proposed date for the payment of such Defaulted Interest, as the case may be, interest shall not be payable on such Interest Payment Date or proposed date for payment, as the case may be, in respect of such definitive bond,
but shall be payable on the Interest Payment Date or proposed date for payment, as the case may be, only to the person to whom interest in respect of such portion of such Global Security shall be payable in accordance with the provisions of the
Indenture and the Series UU Bonds. 
 (c)     Subject to Clause (b) above, any
exchange or transfer of a Global Security for other Series UU Bonds may be made in whole or in part, and all definitive Series UU Bonds issued in exchange for or upon transfer of a Global Security or any portion thereof shall be registered in such
names as the depositary for such Global Security shall direct. 
 (d)     Every Series UU
Bond authenticated and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Security or any portion thereof, shall be authenticated and delivered in the form of, and shall be, a Global Security, unless such bond is
registered in the name of a person other than the depositary for such Global Security or a nominee thereof. 

Section 1.04.    Unless otherwise specified as contemplated by Section 2.01 for the bonds
evidenced thereby, every Global Security authenticated and delivered hereunder shall bear a legend in substantially the following form: 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF
A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY OTHER PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN.

  
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 Section 1.05.    The fully registered Series UU Bonds
without coupons and the certificate of authentication to be endorsed on all Series UU Bonds shall be substantially in the form set forth on Exhibit A. 

Section 1.06.    The Series UU Bonds may contain or have imprinted thereon such provisions or
specifications not inconsistent with the Indenture as may be required to comply with the rules of any stock exchange or any federal or state authority or commission, or to comply with usage with respect thereto, and may bear such other appropriate
endorsements or notations as are authorized or permitted by the Indenture. 
 Section 1.07.    The
fully registered Series UU Bonds shall be issuable in denominations of $1,000, $5,000, $10,000, $25,000 or multiples of $25,000 and shall be dated as provided in paragraph 1 of Section 2.01 of the Base Indenture. The definitive Series UU Bonds
shall be numbered in such manner as the Corporation shall at any time or from time to time determine. 

Section 1.08.    In the manner and subject to certain conditions and limitations specified herein and
in the Indenture, Series UU Bonds may be exchanged without a service charge for a like aggregate principal amount of Series UU Bonds of other authorized denomination or denominations; provided that the Corporation may require payment of a sum or
sums sufficient to reimburse it for any stamp tax or other governmental charge payable in connection therewith. 

Section 1.09.    The Corporation shall maintain in the City and County of San Francisco, State of
California and in such other place or places as the Corporation may designate at any time or from time to time, an office or agency where Series UU Bonds may be presented for payment, registration, transfer and exchange as provided therein or in the
Indenture. Such office or agency in the City and County of San Francisco, State of California shall be the corporate trust office of the Trustee unless and until the Corporation shall designate another office or agency by notice in writing delivered
to the Trustee. The Corporation hereby also designates the corporate trust office of the Trustee in the City and County of Los Angeles, State of California as an office or agency where Series UU Bonds may be presented for payment, registration,
transfer and exchange as provided therein or in the Indenture; provided, that the Corporation shall have no obligation to continue to maintain such agency in the City and County of Los Angeles, State of California. Notwithstanding the foregoing, if
and when definitive certificated Series UU Bonds are issued under the circumstances set forth in clause (b) of Section 1.03 of this Article I, the Corporation shall also maintain in the Borough of Manhattan, City and County of New York,
State of New York, an office or agency where Series UU Bonds may be presented for payment, registration, transfer and exchange as provided therein or in the Indenture. 

Section 1.10.    No transfer or exchange of any Series UU Bonds pursuant to any of the provisions of
this Article I shall be made except upon and in accordance with all of the applicable terms, provisions and conditions of said bonds and of the Indenture. 

  
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 ARTICLE II 

INTEREST, MATURITY DATE, REDEMPTION AND CERTAIN
OTHER PROVISIONS OF SERIES UU BONDS, 
 DUE 2048

 Section 2.01.    The Series UU Bonds shall bear interest at the rate, shall be expressed to
mature as to principal, and shall be payable as to principal, premium, if any, and interest at such place or places and in such money, all as provided in the form of Series UU Bond set forth on Exhibit A hereto and by the applicable
provisions of the Indenture. In addition, May 15, 2018 shall be an Interest Payment Date for the Series UU Bonds for purposes of paragraph 1 of Section 2.01 of the Base Indenture (as supplemented by the Prior Supplemental Indentures),
provided that no interest shall be payable on such date. 
 Section 2.02.    The Series UU Bonds
shall be subject to redemption prior to maturity as set forth in the form of Series UU Bond set forth on Exhibit A, upon notice, in the manner and otherwise upon the terms and conditions and with the effect, as provided therein and by the
applicable provisions of the Indenture. 
 Section 2.03.    The Corporation may at any time deliver
to the Trustee for cancellation any Series UU Bonds previously authenticated and delivered under the Indenture which the Corporation may have acquired in any manner whatsoever and all Series UU Bonds so delivered shall be promptly cancelled by the
Trustee upon the request of the Corporation. 
 Section 2.04.    The Series UU Bonds shall, except
as in this Supplemental Indenture otherwise expressly provided, be on the terms and provisions, and shall represent such rights and be entitled to such benefits, as are applicable thereto by the terms of the Indenture. 

Section 2.05.    The Series UU Bonds shall be entitled to the benefits of the Renewal Fund as
provided in the Indenture. 
 Section 2.06.    The following Section 11.01A shall apply to the
Series UU Bonds in lieu of Section 11.01 of the Base Indenture: 
 “Section 11.01A     If
the Corporation, its successors or assigns, shall 
 (a)    pay or cause to be paid the
principal of and premium, if any, and interest on the bonds and claims for interest thereon to become due at the time and in the manner stipulated therein and herein, and/or 

(b)    provide for the payment of the bonds and interest thereon by depositing in cash with
the Trustee or other depositary satisfactory to it at any time at or before maturity the entire amount due or to become due thereon for principal and premium, if any, and interest to maturity of all the bonds outstanding, and/or 

(c)    in case of a call of all of the bonds then outstanding for redemption, deposit with
the Trustee on or before the date on which all of such bonds (other than those which shall have matured by their terms) shall have been called for redemption, as provided in Article VII, the entire amount of the redemption price thereof, including

  
 9 

 
premium, if any, and interest and shall deliver to the Trustee (1) proof satisfactory to the Trustee that notice of redemption as provided in Article VII has been given, or (2) proof
satisfactory to the Trustee that arrangements have been made insuring that such notice will be given, or (3) a written instrument executed by the Corporation under its corporate seal, and expressed to be irrevocable, authorizing the Trustee to
give such notice for and on behalf of the Corporation, and/or 
 (d)    surrender to the
Trustee for cancellation all the bonds for which payment is not so provided, 
 and shall also irrevocably direct the trustee, by
officers’ certificate delivered to the trustee, to apply any funds deposited pursuant to subdivision (b) or (c) above to the payment of the principal of, and premium, if any, and interest on the bonds as and when the same shall become due
and payable as contemplated by such subdivision and pay, or satisfactorily provide, all other sums due and payable hereunder by the Corporation, including the compensation and expenses of the Trustee, then and in that case, 

(i)    at the request of the Corporation all the mortgaged property shall revert to the
Corporation and the entire estate, right, title and interest of the Trustee and of the holders and registered owners of the bonds in respect of the mortgaged property shall thereupon cease, determine and become void; and 

(ii)    the Trustee in such case, upon the cancellation of all outstanding bonds for the
payment of which cash shall not have been deposited in accordance with the provisions of this Indenture, shall upon request of the Corporation, and at its cost and expense and upon delivery to the Trustee of an opinion of counsel stating that
(x) the Corporation has received from, or there has been published by, the Internal Revenue Service a ruling, or (y) since May 15, 2018 there has been a change in applicable federal income tax law, in either case to the effect that,
and based thereon such opinion of counsel shall confirm that, the holders of Series UU Bonds will not recognize income, gain or loss for federal income tax purposes as a result of such defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred, (A) execute to the Corporation, or its order, proper instruments acknowledging satisfaction of this Indenture and
(B) surrender to the Corporation, or its order, all cash and deposited securities, if any, which shall then be held by it hereunder as a part of the mortgaged property (exclusive of cash held in trust as provided in Section 5.03);
provided, however, that if any such property shall have been delivered to the Trustee by any person or corporation other than the Corporation, the same shall be delivered or otherwise disposed of in accordance with any reservations, limitations,
conditions or provisions which may have been set forth in the instrument in writing then executed, if any, respecting the use, management or disposition thereof; and provided further that if the Corporation pursuant to clauses (1) or (2) of
subdivision (c) above shall have delivered to the Trustee proof satisfactory to it that notice of redemption as provided in Article VII has been given or that arrangements have been made insuring that such notice will be given, there shall also
be delivered to the Trustee an officers’ certificate stating that all conditions precedent to the satisfaction and 

  
 10 

 
discharge of this Indenture have been complied with and an opinion of counsel stating that in his opinion such conditions precedent have been complied with.” 

ARTICLE III 

SUNDRY PROVISIONS 

Section 3.01.    The recitals of fact contained herein shall be taken as the statements of the
Corporation, and the Trustee assumes no responsibility for the correctness of the same. The Corporation hereby covenants and agrees that it will cause this Supplemental Indenture to be kept recorded and/or filed as may be required by law, in such
manner and in such places as may be necessary fully to preserve and protect the security of the bondholders and all of the rights of the Trustee hereunder, and that it will with all reasonable dispatch deposit with the Trustee counterparts of this
Supplemental Indenture bearing official notation or endorsements showing such recordation and/or filing, or in case such counterparts are not returned to the Corporation, furnish to the Trustee the best official evidence of such recordation and/or
filing reasonably obtainable by the Corporation, or evidence of the taking of such other action, if any, but the Trustee, subject to the provisions of Sections 14.02 and 14.03 of the Indenture, shall in no way be liable for any failure or omission
in this regard. 
 Section 3.02.    The date of this Supplemental Indenture and the date of the
Series UU Bonds are intended as and for a date for the convenient identification of this Supplemental Indenture and of the Series UU Bonds, and are not intended to indicate that this Supplemental Indenture was executed and delivered or that the
Series UU Bonds were executed, delivered or issued on said date; it being hereby provided that this Supplemental Indenture may be executed and delivered, and that the Series UU Bonds may be executed, delivered or issued, either on said date or
before or after said date, and that this Supplemental Indenture is in fact executed and delivered by each party hereto on the date of its certificate of acknowledgment hereto attached. 

Section 3.03.    This Supplemental Indenture shall be deemed to be part of the Indenture, and the
Corporation agrees to conform to and comply with all and singular the terms, provisions, conditions and covenants set forth therein and herein. This Supplemental Indenture shall be construed in connection with and as a part of the Indenture. 

Section 3.04.    It is further agreed that the Trustee accepts the trust imposed upon it by this
Supplemental Indenture, upon and subject to the same terms and conditions as are expressed in Article XIV of the Base Indenture. 

Section 3.05.    In order to facilitate the recording of this Supplemental Indenture, the same may be
executed in several counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall collectively constitute one and the same instrument. 

Section 3.06.    All terms used in this Supplemental Indenture which are defined in the Indenture and
not defined herein shall have the meaning assigned to them in the Indenture. As used in the Indenture, this Supplemental Indenture and the Series UU Bonds, all references to “premium” on the Series UU Bonds shall mean any amounts (other
than accrued interest) 

  
 11 

 
payable upon the redemption of any Series UU Bonds in excess of 100% of the principal amount of such Series UU Bonds. 

Section 3.07.    To the extent any provision in this Supplemental Indenture conflicts with any
provision in the Indenture, the provisions of this Supplemental Indenture shall govern; provided however, that in the event such conflict would require bondholder consent, the terms and provisions of the Indenture shall govern. 

Section 3.08.    The Base Indenture, as heretofore amended and supplemented, insofar as it applies to
the Series UU Bonds, this Supplemental Indenture and the Series UU Bonds shall be governed by and construed in accordance with the laws of the State of California, without regard (to the extent permitted by applicable law) to conflicts of laws
principles thereof. 
 Section 3.09.    To the extent not otherwise addressed in this Supplemental
Indenture, this Supplemental Indenture shall be subject to the provisions of Article XVII of the Indenture, the terms of which are hereby incorporated by reference into this Supplemental Indenture. 

(Signature Page Follows) 

  
 12 

 IN WITNESS WHEREOF, Southern California Gas Company has caused this Supplemental
Indenture to be signed in its corporate name by one of its Vice Presidents or its Controller and its Secretary or an Assistant Secretary and its corporate seal to be hereunto duly affixed, and U.S. Bank National Association, in token of its
acceptance of the trust hereby established, has caused this Supplemental Indenture to be signed in its corporate name by one of its Vice Presidents, all as of May 15, 2018. 

 

									
		 		 		 	SOUTHERN CALIFORNIA GAS COMPANY
	Attest:	 		 		 	
				
	 /s/ Kari E. McCulloch
	 		 	By	 	 /s/ Bruce A. Folkmann

	Name:	 	Kari E. McCulloch	 		 	Name:	 	Bruce A. Folkmann
	Title:	 	Corporate Secretary	 		 	Title:	 	 Vice President, Controller, Chief
 Financial
Officer, Chief
 Accounting Officer and
 Treasurer

	(SEAL)	 		 		 		 	
				
		 		 		 	U.S. Bank National Association
					
		 		 		 	By	 	 /s/ Fonda Hall

		 		 		 	Name:	 	Fonda Hall
		 		 		 	Title:	 	Vice President

 [Signature Page – Series UU Supplemental Indenture] 

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 

  

					
	 STATE OF CALIFORNIA
	 	)	 	
	 	 	)	 	ss
	 COUNTY OF SAN DIEGO
	 	)	 	

 On May 11, 2018, before me, LESLIE C. FRENCH, a Notary Public, personally appeared
BRUCE A. FOLKMANN and KARI E. MCCULLOCH, who proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized
capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 WITNESS my hand and official seal. 
  

	
	 /s/ Leslie C. French

	SIGNATURE OF NOTARY PUBLIC

 My Commission expires
                     

 
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 

  

					
	 STATE OF CALIFORNIA
	 	)	 	
		 	)	 	ss
	 COUNTY OF LOS ANGELES
	 	)	 	

 On May 14, 2018, before me, LAURA J. PLUMERVILLE, a Notary Public, personally appeared
FONDA HALL, of U.S. BANK NATIONAL ASSOCIATION, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 WITNESS my hand and official seal. 
  

	
	 /s/ Laura J. Plumerville

	SIGNATURE OF NOTARY PUBLIC

 My Commission expires
                     

 EXHIBIT A 

[FORM OF REGISTERED BOND WITHOUT COUPONS, SERIES UU, DUE 2048] 

[If this bond is issued as a global security, insert the following legend: THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY OTHER PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN.] 
 SOUTHERN CALIFORNIA GAS COMPANY 

(Incorporated under the laws of the State of California) 

4.125% FIRST MORTGAGE BOND, SERIES UU, DUE 2048 
  

			
	No.         	  	 $                

CUSIP No. 842434 CR1

ISIN No. US842434CR16

 SOUTHERN CALIFORNIA GAS COMPANY, a corporation organized and existing under the laws of the
State of California (hereinafter called the “Corporation,” which term shall include any successor thereto under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to
                     or registered assigns, the principal sum of
                     DOLLARS in lawful money of the United States of America, on June 1, 2048, and to pay interest thereon from
May 15, 2018, at the rate of 4.125% per annum in like lawful money, payable semi-annually in arrears, on June 1 and December 1 (each, an “Interest Payment Date”) in each year, commencing December 1, 2018, to the
holder of record of this bond (as defined on the reverse hereof) at the close of business on the immediately preceding May 15 and November 15, respectively, until the Corporation’s obligation with respect to the payment of such
principal (and premium, if any) shall be discharged as provided in the Indenture hereinafter mentioned. The principal of and premium, if any, and interest on this bond will be paid at the office or agency of the Corporation maintained for such
purpose (initially the corporate trust office of U.S. Bank National Association, or its successor trustee under said Indenture) in the City and County of San Francisco, State of California and, if the Series UU Bonds (as defined on the reverse
hereof) are issued in definitive certificated form under the circumstances set forth in clause (b) of Section 1.03 of Article I of the Series UU Supplemental Indenture (as defined on the reverse hereof), at

  
 A-1 

 
the office or agency maintained by the Corporation for such purpose in the Borough of Manhattan, City and County of New York, State of New York. Notwithstanding the foregoing, so long as the
registered holder of this bond is a depositary (as defined in the Series UU Supplemental Indenture), or its nominee, payment of the principal of and premium, if any, and interest on this bond will be made by wire transfer of immediately available
funds; and, if Series UU Bonds are issued in definitive certificated form under the circumstances set forth in clause (b) of Section 1.03 of Article I of the Series UU Supplemental Indenture, the Corporation may at its option pay interest
on the Series UU Bonds in definitive certificated form by check mailed to the addresses of the persons entitled to payment or by wire transfer to bank accounts in the United States designated in writing to the trustee referred to on the reverse
hereof at least 15 days before any Interest Payment Date by the persons entitled to payment. Interest on this bond shall be computed on the basis of a 360-day year consisting of twelve 30-day months. 
 The provisions of this bond are continued on the reverse hereof and such
continued provisions shall for all purposes have the same effect as though set forth at this place. 
 This bond shall not
become valid or obligatory for any purpose or be entitled to any benefit under the Indenture until U.S. Bank National Association, or its successor as trustee under the Indenture, shall have signed the form of certificate of authentication endorsed
hereon. 
 IN WITNESS WHEREOF, SOUTHERN CALIFORNIA GAS COMPANY has caused this bond to be signed in its corporate name by
the manual or facsimile signature of its authorized officer and its corporate seal or a facsimile thereof to be hereto affixed and attested by manual or facsimile signature of its Secretary or an Assistant Secretary. 

Dated: 
  

			
	SOUTHERN CALIFORNIA GAS COMPANY

 
			
		
	By	 	  

	Name:	 	
	Title:	 	

 (CORPORATE SEAL) 

 

	
	Attest:
	
	  

	Name:
	Secretary

  
 A-2 

 [REVERSE SIDE OF 4.125% FIRST MORTGAGE BOND, SERIES UU, DUE 2048] 

This bond is one of a duly authorized issue of bonds of the Corporation (herein called the “bonds”), of the
series hereinafter specified, all issued and to be issued under and all equally and ratably secured by a First Mortgage Indenture dated October 1, 1940, between the Corporation and U.S. Bank National Association, as successor trustee, to which
indenture and all indentures supplemental thereto, including Supplemental Indentures dated, respectively, as of July 1, 1947, August 1, 1955, June 1, 1956, December 1, 1956, June 1, 1965, August 1, 1972, May 1,
1976, September 15, 1981, May 18, 1984, November 15, 1986, January 15, 1988, August 15, 1992, November 18, 2005, November 18, 2010, September 21, 2012, March 13, 2014, September 11, 2014,
June 18, 2015, June 18, 2015, June 3, 2016 and May 15, 2018 (herein collectively referred to, and as the same may be further amended or supplemented from time to time, as the “Indenture”), reference is hereby
made for a description of the property conveyed in trust, mortgaged and pledged, the nature and extent of the security, the rights of the registered owners of the bonds and of the trustee or trustees in respect thereof, the terms and conditions upon
which the bonds are, and are to be, secured and the circumstances under which additional bonds may be issued. The bonds may be issued for various principal sums, and may be issued in series, which may mature at different times, may bear interest at
different times, may bear interest at different rates and may otherwise vary as in the Indenture provided. This bond is one of a series designated as the “First Mortgage Bonds, Series UU, due 2048” (herein called “Series UU
Bonds”) of the Corporation, issued under and secured by the Indenture. The Supplemental Indenture dated as of May 15, 2018 relating to the Series UU Bonds is sometimes herein called the “Series UU Supplemental
Indenture.” Terms used but not defined herein shall have the respective meanings assigned thereto in the Indenture. 

As provided in the Indenture, by any indenture or indentures supplemental thereto executed by the Corporation and the trustee
and consented to by the holders of not less than two-thirds ( 2⁄3) in principal amount of the bonds at the time
outstanding, and, in case one or more, but less than all, of the series of bonds then outstanding are affected by such supplemental indenture, consented to by the holders of at least two-thirds ( 2⁄3) in principal amount of the bonds of such series so affected, the Indenture or any indenture supplemental thereto and the rights and obligations of the
Corporation and the holders of bonds, may be modified or altered from time to time, as provided in the Indenture; provided, however, (a) that the right of any holder of any bond to receive payment of the principal of and premium, if any, and
interest on such bond, on or after the respective due dates expressed in such bond, or to institute suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected by any such supplemental indenture
without the consent of such holder, and (b) that no such modification or alteration shall reduce the proportions of bondholders’ consents required as aforesaid; such proportions to be determined in each case as provided in the Indenture.

 The Series UU Bonds are entitled to the benefits of the Renewal Fund as provided in the Indenture. 

Prior to December 1, 2047 (the “Par Call Date”), the Corporation may at the Corporation’s option
redeem the Series UU Bonds, at any time in whole or from time to time in part, at a redemption price (the “Redemption Price”) for any redemption date (a “Redemption Date”) equal to the greater of the following
amounts: (a) 100% of the principal amount of the 

  
 A-3 

 
Series UU Bonds being redeemed on that Redemption Date; or (b) the sum of the present values of the remaining scheduled payments of principal and interest on the Series UU Bonds being
redeemed on that Redemption Date (not including any portion of any payments of accrued and unpaid interest to that Redemption Date) that would be due if the Series UU Bonds matured, and accrued and unpaid interest was payable, on the Par Call Date,
discounted to that Redemption Date on a semiannual basis at the Adjusted Treasury Rate (as defined below) plus 15 basis points, as determined by the Independent Investment Banker (as defined below), plus, in each case, accrued and unpaid interest on
the Series UU Bonds being redeemed to that Redemption Date. On and after the Par Call Date, the Corporation may at the Corporation’s option redeem the Series UU Bonds, at any time in whole or from time to time in part, at a Redemption Price
equal to 100% of the principal amount of the Series UU Bonds being redeemed, plus accrued and unpaid interest on the Series UU Bonds being redeemed to the Redemption Date. Notwithstanding the foregoing, installments of interest on Series UU Bonds
that are due and payable on any Interest Payment Date falling on or prior to a Redemption Date will be payable on that Interest Payment Date to the registered holders of such Series UU Bonds as of the close of business on the relevant record dates
according to the terms of the Series UU Bonds and the Indenture. The Redemption Price will, if applicable, be calculated on the basis of a 360-day year consisting of twelve
30-day months. 
 Notice of any redemption will be mailed at least 30 days, but not
more than 60 days, before the Redemption Date to each registered holder of the Series UU Bonds to be redeemed. Once notice of redemption is mailed, the Series UU Bonds called for redemption will become due and payable on the Redemption Date and at
the applicable Redemption Price, plus accrued and unpaid interest to the Redemption Date. Redemption will not be conditional upon receipt by the trustee of monies sufficient to pay the Redemption Price. 

Unless the Corporation defaults in payment of the Redemption Price, on and after the Redemption Date interest will cease to
accrue on the Series UU Bonds or portions thereof called for redemption. The Corporation will pay the Redemption Price and any accrued interest once the Series UU Bonds are surrendered for redemption. If only a portion of any Series UU Bonds is
redeemed, the trustee will deliver new Series UU Bonds for the remaining portion without charge. 
 “Adjusted
Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 
 “Comparable
Treasury Issue” means, with respect to any Redemption Date, the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the Series UU Bonds to be redeemed on
such Redemption Date (assuming the Series UU Bonds matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Series UU Bonds (assuming the Series UU Bonds matured on the Par Call Date). 

  
 A-4 

 “Comparable Treasury Price” means, with respect to any
Redemption Date, (A) the average of the Reference Treasury Dealer Quotations for such Redemption Date, or (B) if only one Reference Treasury Dealer Quotation is received, such quotation. 

“Independent Investment Banker” means, with respect to any Redemption Date, one of the Reference Treasury
Dealers appointed by the Corporation to act as the “Independent Investment Banker.” 
 “Reference Treasury
Dealers” means, with respect to any Redemption Date, (A) BNP Paribas Securities Corp. and Mizuho Securities USA LLC (or their respective affiliates which are Primary Treasury Dealers (as defined below)) and their respective successors;
provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in the United States (a “Primary Treasury Dealer”), the Corporation will substitute therefor another Primary Treasury
Dealer; (B) one Primary Treasury Dealer selected by SMBC Nikko Securities America, Inc. and its successors; (C) one Primary Treasury Dealer selected by U.S. Bancorp Investments, Inc. and its successors; and (D) any other Primary
Treasury Dealer(s) selected by the Corporation. 
 “Reference Treasury Dealer Quotation” means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Corporation, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Corporation by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third business day preceding such Redemption Date. As used in the preceding sentence, “business day” means any day (other than a
Saturday or Sunday) on which banking institutions in The City of New York are not authorized or obligated by law or executive order to remain closed. 

In the event that the Corporation elects to redeem only a portion of the outstanding Series UU Bonds, (a) the Series UU
Bonds to be redeemed shall be selected as provided in the Indenture and, in the case of Series UU Bonds represented by a Global Security (as defined in the Series UU Supplemental Indenture), in accordance with the procedures of The Depository Trust
Company (or its successor as depositary) and (b) in the case of any Series UU Bond being redeemed in part, the principal amount redeemed must be $1,000 or an integral multiple of $1,000 and the remaining principal amount must be an authorized
denomination. 
 In case an event of default, as defined in the Indenture, shall occur, the principal of and interest
accrued on all bonds then outstanding under the Indenture may be declared or become due and payable upon the conditions and in the manner and with the effect provided in the Indenture. 

This bond is transferable by the registered owner hereof at the office or agency of the Corporation in the City and County of
San Francisco, State of California that the Corporation maintains for such purpose and, if Series UU Bonds are issued in definitive certificated form under the circumstances set forth in clause (b) of Section 1.03 of Article I of the
Series UU Supplemental Indenture, at the office or agency in the Borough of Manhattan, City and County of New York, State of New York, that the Corporation maintains for such purpose and in such other place or places as the Corporation may designate
at any time or from time to time, upon 

  
 A-5 

 
surrender and cancellation of this bond, and thereupon a new fully registered bond or bonds of said series, without coupons, of authorized denomination or denominations, of a like aggregate
principal amount, will be issued to the transferee or transferees in exchange for this bond; and at any of said offices or agencies fully registered Series UU Bonds without coupons are exchangeable for a like aggregate principal amount of other such
fully registered bonds of authorized denominations; all in the manner and subject to the conditions as provided in the Indenture. 

No recourse shall be had for the payment of the principal of or premium, if any, or the interest on this bond or for any claim
based hereon or on the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, director or officer, past, present or future, of the Corporation, or of any predecessor or successor corporation, either directly or
through the Corporation, or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty, or otherwise, all such liability being waived and released
by every registered owner hereof by the acceptance of this bond and as part of the consideration for the issue hereof, and being likewise waived and released by the terms of the Indenture. 

This bond shall be governed by and construed in accordance with the laws of the State of California, without regard (to the
extent permitted by applicable law) to conflicts of laws principles thereof. 

  
 A-6 

 [FORM OF CERTIFICATE OF AUTHENTICATION] 

CERTIFICATE OF AUTHENTICATION 

This bond is one of the bonds, of the series designated therein, described in the within-mentioned Indenture. 

 

			
	U.S. BANK NATIONAL ASSOCIATION,
	as Trustee
		
	By	 	  

		 	Authorized Officer

 Date of authentication:NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS PROMISSORY NOTE 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.

 

PRESSURE
BIOSCIENCES, inc.

 

amendment
number 3 to october 26, 2016 PROMISSORY NOTE

 

	Original
    Principal: US$2,000,000	Original
    Issue Date: October 26, 2016
	 	 
	Amendment
    No. 1	 
	Principal:
    US$3,000,000	Amendment
    No. 1 Issue Date: May 2, 2017
	 	 
	Amendment
    No. 2	 
	Principal:
    US$3,500,000	Amendment
    No. 2 Issue Date: August 18, 2017
	 	 
	Amendment
    No. 3	 
	Principal:
US$4,000,000	Amendment
    No. 3 Issue Date:January 30, 2018

 

WHEREAS,
PRESSURE BIOSCIENCES, INC., a corporation incorporated under the laws of the Commonwealth of Massachusetts and located
at 14 Norfolk Avenue, South Easton, MA 02375 (the “Company”) previously issued a Promissory Note (the “Original
Note”) on October 26, 2016 (the “Original Issue Date”), in favor of _______, an individual
residing at ____________ (the “Holder”) for the principal sum of Two Million United States Dollars (US$2,000,000);

 

WHEREAS,
the Company and the Holder amended the Original Note on May 2, 2017 (the “Amendment Number 1 Issue Date”),
to, among other amendments, increase the principal sum to Three Million United States Dollars (US$3,000,000) (“Amendment
Number 1”); and

 

WHEREAS,
the Company and the Holder wish to again amend the Original Note with such amendment having an issue date of August 18, 2017 (this
“Amendment Number 2”), the Original Note having the Original Issue Date, and Amendment Number 1 having the
Amendment Number 1 Issue Date.

 

    	 	 	 

    	 	 	 

    

 

WHEREAS,
the Company and the Holder wish to again amend the Original Note with such amendment having an issue date of January 30, 2018
(this “Amendment Number 3”), the Original Note having the Original Issue Date, Amendment Number 1 having the
Amendment Number 1 Issue Date and Amendment Number 2 having the Amendment Number 2 Issue Date.

 

NOW,
THEREFORE, in consideration of, among other things, the premises, representations, respective covenants and agreements contained
herein, each party hereby agrees to the following:

 

	 	1.	Capitalized
    terms used, but not defined, herein, shall have the meanings ascribed to such terms in the Original Note as amended by Amendment
    Number 3.
	 	 	 
	 	2.	The
    definition of Principal Amount in the Original Note as amended by Amendment Number 3 is changed to Four Million United States
    Dollars (US$4,000,000).
	 	 	 
	 	3.	All
    other terms and conditions of the Original Note as amended by Amendment Number 3 shall remain in full force and effect.
	 	 	 
	 	4.	This
    Amendment Number 3 may be executed in any number of counterparts and by the different signatories hereto on separate counterparts,
    each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same
    instrument.  This Amendment Number 3 may be executed by facsimile transmission, PDF, electronic signature or other
    similar electronic means with the same force and effect as if such signature page were an original thereof.

 

[Signature
page follows]

 

    	 	2	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, this Amendment Number 3 has been executed and delivered on the Amendment No. 3 Issue Date specified above.

 

	 	COMPANY:
	 	 	 
	 	PRESSURE
    BIOSCIENCES, INC.
	 	 	 
	 	By:	
	 	Name:	Richard
    T. Schumacher
	 	Title:	President
    and CEO
	 	 	 
	 	HOLDER:
	 	 	 
	 	 

 

[signature
page to Amendment Number 3]

 

    	 	3

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