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 November 14, 2022 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
	PARTIES	 		  	 	1	 
	RECITALS	 		  	 	1	 
	GRANTING CLAUSES	  	 	4	 
	HABENDUM AND DECLARATION OF TRUST	  	 	5	 
		
	ARTICLE I AMOUNT, FORM, NUMBERING, DENOMINATION, TRANSFER AND EXCHANGE OF SERIES YY
BONDS, DUE 2052	  	 	6	 
			
	SECTION 1.01.	 	 AUTHORIZED AMOUNT OF SERIES YY
BONDS, DUE 2052
	  	 	6	 
	SECTION 1.02.	 	 SERIES YY BONDS, DUE 2052; ISSUABLE
AS FULLY REGISTERED BONDS
	  	 	6	 
	SECTION 1.03.	 	 GLOBAL SECURITIES
	  	 	6	 
	SECTION 1.04.	 	 FORM OF LEGEND FOR
GLOBAL SECURITY
	  	 	8	 
	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 YY BONDS,
DUE 2052
	  	 	8	 
	SECTION 1.09.	 	 OFFICES OR AGENCIES FOR
PAYMENT, REGISTRATION, TRANSFER AND EXCHANGE OF SERIES YY BONDS, DUE 2052
	  	 	8	 
	SECTION 1.10.	 	 CERTAIN CONDITIONS AS TO
TRANSFER, ETC., OF SERIES YY BONDS, DUE 2052
	  	 	9	 
		
	ARTICLE II INTEREST, MATURITY DATE, REDEMPTION AND CERTAIN OTHER PROVISIONS OF
SERIES YY BONDS, DUE 2052	  	 	9	 
			
	SECTION 2.01.	 	 INTEREST RATE, MATURITY DATE
AND PLACES AND MEDIUM OF PAYMENT OF SERIES YY BONDS, DUE 2052
	  	 	9	 
	SECTION 2.02.	 	 REDEMPTION OF SERIES YY BONDS,
DUE 2052
	  	 	9	 
	SECTION 2.03.	 	 CANCELLATION OF SERIES YY BONDS,
DUE 2052
	  	 	9	 
	SECTION 2.04.	 	 OTHER PROVISIONS OF SERIES YY
BONDS, DUE 2052
	  	 	9	 
	SECTION 2.05.	 	 RENEWAL FUND FOR SERIES YY
BONDS, DUE 2052
	  	 	9	 

  
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	 SECTION 2.06.
	 	DEFEASANCE OF SERIES YY BONDS, DUE 2052	  	 	10	 
		
	 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 YY BONDS, DUE 2052, ARE DATES
OF IDENTIFICATION	  	 	11	 
	 SECTION 3.03.
	 	SUPPLEMENTAL INDENTURE DEEMED TO BE PART OF BASE INDENTURE	  	 	12	 
	 SECTION 3.04.
	 	TRUSTEE ACCEPTS TRUSTS ON SAME TERMS EXPRESSED IN BASE INDENTURE	  	 	12	 
	 SECTION 3.05.
	 	EXECUTION OF SUPPLEMENTAL INDENTURE IN COUNTERPARTS	  	 	12	 
	 SECTION 3.06.
	 	DEFINED TERMS	  	 	12	 
	 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 November 14, 2022 (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, June 3, 2016, May 15, 2018, September 24, 2018, June 4, 2019, January 9, 2020 and March 29, 2022 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 March 29, 2022) 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 March 29, 2022 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 2022-0061133	  	May 10, 2022
			
	Imperial	  	Official Records, Document 2022010645	  	May 10, 2022
			
	Kern	  	Official Records, Document 222075613	  	May 12, 2022
			
	Kings	  	Official Records, Document 2209046	  	May 11, 2022
			
	Los Angeles	  	Official Records, Document 20220509998	  	May 10, 2022
			
	Monterey	  	Official Records, Document 2022016049	  	April 1, 2022
			
	Orange	  	Official Records, Document 2022000175515	  	May 10, 2022
			
	Riverside	  	Official Records, Document 2022-0219939	  	May 11, 2022
			
	San Bernardino	  	Official Records, Document 2022-0174885	  	May 10, 2022
			
	San Diego	  	Official Records, Document 2022-0201548	  	May 10, 2022
			
	San Luis Obispo	  	Official Records, Document 2022020352	  	May 10, 2022
			
	Santa Barbara	  	Official Records, Document 2022-0023184	  	May 10, 2022
			
	Tulare	  	Official Records, Document 2022-0028793	  	May 9, 2022
			
	Ventura	  	Official Records, Document 2022000055943	  	May 10, 2022

 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, the Base Indenture and the Prior Supplemental Indentures dated, respectively, as of October 1, 1940, June 1, 1950,
August 1, 1955, December 1, 1956, June 1, 1965, August 1, 1972, October 1, 1974, May 1, 1976, September 15, 1981, May 18, 1984, November 18, 2005, November 18, 2010, September 21, 2012,
March 13, 2014, September 11, 2014, June 18, 2015, June 3, 2016, May 15, 2018, September 24, 2018, June 4, 2019 and January 9, 2020, copies of each of which were attached as Exhibit A to the Prior
Supplemental Indenture dated as of March 29, 2022 recorded in the offices of the County Recorders of Fresno County, Imperial County, Kern County, Kings County, Los Angeles County, Monterey County, Orange County, Riverside County, San Bernardino
County, San Diego County, San Luis Obispo County, Santa Barbara County, Tulare County and Ventura County, are recorded in such counties to the extent stated in this Supplemental Indenture; and 

  
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 WHEREAS, the Corporation has executed and delivered to the Trustee the Prior Supplemental
Indenture dated as of July 1, 1947, a copy of which is attached hereto as Exhibit B (except in counties listed above where such Prior Supplemental Indenture previously has been recorded); and 

WHEREAS, bonds of the Corporation of eleven (11) 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 RR, due 2025,” “First Mortgage Bonds, Series TT, due 2026,” “First Mortgage Bonds, Series UU, due 2048,” “First Mortgage Bonds, Series VV, due 2049,” “First Mortgage Bonds, Series WW,
due 2050” and “First Mortgage Bonds, Series XX, due 2030” 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 “Green First Mortgage Bonds, Series YY, due 2052” (the “Series YY Bonds”), of the form, terms and provisions provided herein, which new series of bonds, unless and until the taking of 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 $600,000,000 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 YY 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 YY Bonds and the
encumbrance of the Corporation’s property to secure the Series YY 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 YY Bonds, and the form of the legend to be endorsed on Series YY Bonds evidenced by Global Securities (as defined in Section 1.02 of
Article I of this Supplemental Indenture), and (ii) the terms and provisions of the Series YY 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 

  
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the $600,000,000 aggregate principal amount of Series YY 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 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, Monterey, 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, 

  
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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”), 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. 

  
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 ARTICLE I 

AMOUNT, FORM, NUMBERING, DENOMINATION, 

TRANSFER AND EXCHANGE OF 
 SERIES YY
BONDS, DUE 2052 
 Section 1.01. The Series YY Bonds may be issued at any time or from time to time upon and subject to the terms and
provisions of the Indenture, and $600 million aggregate principal amount of Series YY 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 YY 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 YY Bonds, but upon and
subject to the terms and provisions of the Indenture, increase the principal amount of Series YY Bonds under the Indenture and issue such increased principal amount, or any portion thereof. Any additional Series YY 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 YY Bonds
previously issued and shall form a single series of First Mortgage Bonds under the Indenture with the previously issued Series YY Bonds. 

Section 1.02. The Series YY Bonds shall be issued only as fully registered bonds without coupons. In addition, the Series YY Bonds may be
issued 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 (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 YY 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 YY 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 YY 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 YY Bonds and a successor depositary has not been
appointed by the Corporation 

  
 6 

 
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 the depositary’s ceasing to be so registered, (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 YY 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 YY 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 YY 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 of counsel), to be exchanged, in whole or in part, for definitive Series YY 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 YY 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 YY 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 YY Bonds. 
 (c) Subject to Clause (b) above, any
exchange or transfer of a Global Security for other Series YY Bonds may be made in whole or in part, and all definitive Series YY 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. 

  
 7 

 (d) Every Series YY 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. 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. 
 Section 1.05. The Series YY Bonds and the certificate of authentication to be
endorsed on all Series YY Bonds shall be substantially in the form set forth on Exhibit A. 
 Section 1.06. The Series YY 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 Series YY 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 Series YY 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 YY Bonds may
be exchanged without a service charge for a like aggregate principal amount of Series YY 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 YY Bonds may be presented for payment, registration, transfer and
exchange as provided therein or in the Indenture. Such office or agency 

  
 8 

 
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 YY 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 office or agency in the City and County of Los Angeles, State of California.
Notwithstanding the foregoing, if and when definitive certificated Series YY 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, the City and County of New York, State of New York, an office or agency where Series YY 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 YY 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. 
 ARTICLE II 

INTEREST, MATURITY DATE, REDEMPTION AND CERTAIN
OTHER PROVISIONS OF SERIES YY BONDS, DUE 2052 

Section 2.01. The Series YY 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 YY Bond set forth on Exhibit A hereto and by the applicable provisions of the Indenture. In addition,
November 14, 2022 shall be an Interest Payment Date for the Series YY 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 YY Bonds shall be subject to redemption prior to maturity as set forth in the form of
Series YY 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 YY Bonds previously authenticated and
delivered under the Indenture which the Corporation may have acquired in any manner whatsoever and all Series YY Bonds so delivered shall be promptly cancelled by the Trustee upon the request of the Corporation. 

Section 2.04. The Series YY 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 YY Bonds shall be entitled to the benefits of the Renewal Fund as provided in the Indenture. 

  
 9 

 Section 2.06. The following Section 11.01A shall apply to the Series YY 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
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 (and any such other depositary), by officers’ certificate delivered to the Trustee (and any such other
depositary), 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 November 14, 2022 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, 

  
 10 

 
the holders of Series YY 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 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 YY Bonds are intended as and for a date for the
convenient identification of this Supplemental Indenture and of the Series YY Bonds, and are not intended to indicate that this Supplemental Indenture was executed and delivered or that the Series YY 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 YY 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. 

  
 11 

 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 YY Bonds, all references to “premium” on the Series YY Bonds shall mean any amounts (other than accrued interest) payable upon
the redemption of any Series YY Bonds in excess of 100% of the principal amount of such Series YY 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 YY Bonds, this Supplemental Indenture and the Series YY 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. 

Section 3.10. The words “execution,” “signed,” “signature,” and words of like import in this Supplemental
Indenture or in any instruments, agreements, certificates, legal opinions, negative assurance letters or other documents entered into or delivered pursuant to or in connection with this Supplemental Indenture shall include (subject to the provisions
set forth in the last sentence of this Section 3.10) images of manually executed signatures transmitted by facsimile, email or other electronic format (including, without limitation, “pdf,” “tif” or “jpg”) and
electronic signatures (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or
stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, 

  
 12 

 
any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code. Without limitation to the foregoing, and anything in this Supplemental Indenture to the contrary
notwithstanding, except as set forth in the proviso to this sentence, (a) this Supplemental Indenture and any other instruments, agreements, certificates, legal opinions, negative assurance letters or other documents entered into or delivered
pursuant to or in connection with this Supplemental Indenture may be executed, attested and transmitted by any of the foregoing electronic means and formats and (b) all references in this Supplemental Indenture to the execution, attestation or
authentication of any bond of this series (including any Global Security) or any certificate of authentication appearing on or attached to any such bond by means of a manual or facsimile signature shall be deemed to include signatures that are made
or transmitted by any of the foregoing electronic means or formats; provided that, notwithstanding the foregoing, this Supplemental Indenture may not be executed or attested by the parties hereto by DocuSign, AdobeSign or other electronic signature,
and no Series YY Bond (including, without limitation, any Global Security) and no certificate of authentication on any Series YY Bond (including, without limitation, any Global Security) may be executed by DocuSign, AdobeSign or other electronic
signature and each certificate of authentication must be executed by the Trustee by manual signature of an authorized signatory. 

(Signature Page Follows) 

  
 13 

 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 November 14, 2022. 
  

							
		 		 	SOUTHERN CALIFORNIA GAS COMPANY
	Attest:	 		 	
				
	/s/ April R. Robinson	 		 	By:	 	/s/ David J. Barrett
	Name: April R. Robinson	 		 		 	Name: David J. Barrett
	Title: Corporate Secretary	 		 		 	Title: Senior Vice President and General Counsel
				
	(SEAL)	 		 		 	

  

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	/s/ Fonda Hall
		 	Name: Fonda Hall
		 	Title: Vice President

  
 [Signature Page –
Series YY 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 November 9, 2022, before me, LESLIE C. FRENCH, a Notary Public, personally appeared DAVID J. BARRETT
and APRIL R. ROBINSON, 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 12/4/2023 

 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 November 10, 2022, before me, Lisa R. Perez, 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/ Lisa R. Perez
	SIGNATURE OF NOTARY PUBLIC

 My Commission expires September 14, 2023 

 EXHIBIT A 

[FORM OF REGISTERED BOND WITHOUT COUPONS, SERIES YY, DUE 2052] 

[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) 

6.350% GREEN FIRST MORTGAGE BOND, SERIES YY, DUE 2052 
  

			
		  	$___________
	No. ___	  	CUSIP No. 842434 CX8
		  	ISIN No. US842434CX83

 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 November 15, 2052, and to pay interest thereon from November 14,
2022, or from the most recent date to which interest has been paid or duly provided for on the Series YY Bonds (as defined on the reverse hereof), at the rate of 6.350% per annum in like lawful money, payable semi-annually in arrears, on May 15
and November 15 (each, an “Interest Payment Date”) in each year, commencing May 15, 2023, to the holder of record of this bond (as defined on the reverse hereof) at the close of business on the immediately preceding
May 1 and November 1, 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 YY 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 YY Supplemental
Indenture (as defined on the reverse hereof), at the office or agency maintained by the Corporation for such purpose in the Borough of Manhattan, the City and County of New York, State of New York. Notwithstanding the foregoing, so long as the
registered holder 

  
 A-1 

 
of this bond is a depositary (as defined in the Series YY 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 YY 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 YY Supplemental Indenture, the
Corporation may at its option pay interest on the Series YY 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 6.350% GREEN FIRST MORTGAGE BOND, SERIES YY, DUE 2052] 

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, October 1, 2002, November 18, 2005, November 18, 2010, September 21, 2012, March 13, 2014,
September 11, 2014, June 18, 2015, June 3, 2016, May 15, 2018, September 24, 2018, June 4, 2019, January 9, 2020, March 29, 2022 and November 14, 2022 (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 “Green First Mortgage Bonds, Series YY, due 2052” (herein called “Series YY Bonds”) of the Corporation, issued under and secured by the Indenture. The Supplemental Indenture dated as of November 14,
2022 relating to the Series YY Bonds is sometimes herein called the “Series YY 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 YY Bonds are entitled to the benefits of the Renewal Fund as provided in the Indenture. 

Prior to May 15, 2052 (the “Par Call Date”), the Corporation may redeem the Series YY Bonds at the Corporation’s
option, in whole or in part, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: 

  
 A-3 

 (1)(a) the sum of the present values of the remaining scheduled payments of
principal and interest thereon discounted to the redemption date (assuming the Series YY Bonds matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 35 basis points less (b) interest accrued to the date of redemption, and 

(2) 100% of the principal amount of the Series YY Bonds to be redeemed, 

plus, in either case, accrued and unpaid interest thereon to the redemption date. 

On and after the Par Call Date, the Corporation may redeem the Series YY Bonds at the Corporation’s option, in whole or in part, at any
time and from time to time, at a redemption price equal to 100% of the principal amount of the Series YY Bonds being redeemed plus accrued and unpaid interest thereon to the redemption date. 

Notwithstanding the foregoing, installments of interest on Series YY 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 thereof as of the close of business on the relevant record date according to the terms of the Series YY Bonds and the Indenture. 

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 YY Bonds to be redeemed. Once notice of redemption is mailed, the Series YY Bonds called for redemption will become due and payable on the redemption date 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 the payment of the redemption price, on and after the redemption date interest will cease to accrue on the Series YY Bonds or portions thereof called for redemption. The Corporation will pay the redemption price and any
accrued and unpaid interest once the Series YY Bonds are surrendered for redemption. 
 In the event that the Corporation elects to redeem
only a portion of the outstanding Series YY Bonds on any redemption date, (a) the Series YY Bonds to be redeemed shall be selected as provided in the Indenture and, in the case of Series YY Bonds represented by a Global Security (as defined in
the Series YY Supplemental Indenture), in accordance with the procedures of The Depository Trust Company (or its successor as depositary for the Series YY Bonds), (b) in the case of any Series YY Bond being redeemed in part, the principal amount
redeemed must be $1,000 or an integral multiple of $1,000 and the unredeemed portion of the principal amount of such Series YY Bond must be an authorized denomination, and (c) the trustee will deliver without charge one or more new Series YY
Bonds in principal amount equal to the unredeemed portion of the principal amount of the Series YY Bonds surrendered for redemption. 

  
 A-4 

 “Treasury Rate” means, with respect to any redemption date, the yield
determined by the Corporation in accordance with the following two paragraphs. 
 The Treasury Rate shall be determined by the Corporation
after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third business day (as defined below) preceding the redemption date
based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates
(Daily)—H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading) (“H.15”
TCM”). In determining the Treasury Rate, the Corporation shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to the Par Call Date (the “Remaining
Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield
corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Par Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result
to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of
this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the redemption date. As
used in this paragraph and the immediately succeeding paragraph, the term “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. 
 If on the third business day preceding the redemption date H.15 TCM is no longer published, the
Corporation shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day preceding such redemption date of the United States
Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a
maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, the Corporation shall select the United States Treasury security with a maturity
date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Corporation shall select
from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York
City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as
a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. 

  
 A-5 

 The Corporation’s actions and determinations in determining the redemption price shall
be conclusive and binding for all purposes, absent manifest error. The Corporation will notify the trustee of the redemption price promptly after the calculation thereof and the trustee shall have no duty or obligation with respect to calculation of
the redemption price. 
 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 in the City and County of San Francisco, State of California
that the Corporation maintains for such purpose (initially the corporate trust office of U.S. Bank National Association, or its successor trustee under the Indenture) and, if Series YY 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 YY Supplemental Indenture, at the office or agency in the Borough of Manhattan, the 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 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 Series YY Bonds are exchangeable for a like
aggregate principal amount of other such 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. 

In any case where any Interest Payment Date, any redemption date or the maturity date of the Series YY Bonds is not a Business Day at any
Place of Payment (as those terms are defined in the next sentence), then payment of the principal, premium, if any, and interest due on such Interest Payment Date, redemption date or maturity date, as the case may be, need not be made at such Place
of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment and, in that case, no interest will accrue on the amount payable for the period from and after such Interest Payment Date, redemption date or
maturity date, as the case may be. As used in the immediately preceding sentence, “Place of Payment” means the City and County of San Francisco, State of California and any other place or places where the Corporation may from time to time
maintain an office or agency where Series YY Bonds may be presented for payment, and “Business Day,” when used with respect to any Place of Payment, means a day other than (i) a Saturday or a Sunday or (ii) a day on which banking
institutions in that Place of Payment are authorized or obligated by law or executive order to remain closed. 

  
 A-6 

 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-7 

 [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: 

 EXHIBIT B 

Exhibit B to the Supplemental Indenture was filed with the Supplemental Indenture in Monterey County. 

Exhibit B includes: 
  

	 	•	 	 Supplemental Indenture dated July 1, 1947. 

A copy of such document is on file with the Company.Exhibit 10.1
​
EMPLOYMENT AGREEMENT
This Employment Agreement (“Agreement”) is by and between Paul F. Hickey (“Employee”) and ReShape Lifesciences Inc., a Delaware corporation (“Employer”) (collectively referred to herein as the “Parties”), effective as November 1, 2022.
RECITALS
WHEREAS, the Employer and Employee wish to have an employment relationship for their mutual benefit;
WHEREAS, the Employer and the Employee wish to enter into this Agreement setting forth the terms and conditions upon which Employee will be employed by Employer;
NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged Employer and the Employee, the Parties hereby covenant and agree as follows:
ARTICLE 1 - DEFINITIONS
1.1Definitions.  For the purposes of this Agreement, the following words and phrases shall have the following meanings:
		(a)
	“Affiliate” of a person or entity means any person that directly or indirectly controls, is controlled by, or is under common control with, that person or entity.

		(b)
	“Agreement” means this agreement, including any schedules hereto, as amended, supplemented, or modified in writing from time to time.

		(c)
	“Board” means the Board of Directors of the Employer.

		(d)
	“Cause” means: (a) willful breach of Employee’s duties to Employer or willful breach of this Agreement; (b) Employee’s conviction of any felony or any crime involving fraud, dishonesty or moral turpitude; (c) Employee’s willful participation in any fraud against or affecting Employer or any subsidiary, affiliate, customer, supplier, client, agent, or employee thereof; or (d) any other act that Employer reasonably determines constitutes gross or willful misconduct materially detrimental to Employer, including unethical practices, dishonesty, disloyalty, violation of Employer’s harassment policy or any other acts harmful to Employer; provided, however that a for Cause termination pursuant to clause (a), if susceptible of cure,  shall not become effective unless Employee fails to cure such failure to perform or breach within 60 days after receipt of written notice from Employer, such notice to describe such failure to perform or breach and identify what reasonable actions shall be required to cure such failure to perform or breach. For purposes of the definition of “Cause,” no act, or failure to act, on Employee’s part shall be considered “dishonest” or “willful” unless done, or omitted to be done, by Employee in bad faith and without reasonable belief that Employee’s action or omission was in, or not opposed to, the best interest of Employer. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for Employer shall be conclusively presumed to be done, or omitted to be done, by Employee in good faith and in the best interests of Employer. Furthermore, the term “Cause” shall not include ordinary negligence or failure to act, whether due to an error in judgment or

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otherwise, if Employee has exercised substantial efforts in good faith to perform the duties reasonably assigned or appropriate to Employee’s position.
		(e)
	“Good Reason” means, at any time: (a) the assignment by Employer to Employee of employment duties, functions or responsibilities that are significantly different from, and result in a material diminution of, Employee’s duties, functions or responsibilities, including any requirement that Employee report to another officer of Employer, rather than directly to the Board; (b) a material reduction in Employee’s base salary or the minimum target amount provided above for Employee’s cash incentive compensation for any calendar year; (c) Employer’s requirement that Employee be based at any office or location more than 35 miles from Employer’s principal office; or (d) any other action or inaction that constitutes a material breach of this Agreement by Employer.

ARTICLE 2 - AT-WILL EMPLOYMENT
2.1At-Will Employment.  Employee will be employed on an “at-will” basis, meaning that either Employee or the Employer may terminate Employee’s employment relationship at any time with or without cause, and with or without advanced notice, subject to the payment of the Accrued Amounts and Separation Benefits as provided in Sections 6.2, 6.3, and 6.4. Although Employee’s compensation and benefits may change from time to time, the at-will nature of Employee’s employment may only be changed by an express written agreement signed by an authorized representative of Employer.
ARTICLE 3 - EMPLOYMENT AND POSITION
3.1Position.  Subject to the terms and conditions set out in this Agreement, Employer hereby agrees to employ Employee, and Employee hereby agrees to serve Employer, in the position of President and Chief Executive Officer effective August 15, 2022 (“Start Date”). Employee shall be based at Employer’s principal office in San Clemente, California or another mutually agreed upon location, subject to reasonable travel requirements on behalf of Employer as determined by the Board.
3.2Prior Agreements.  Employee represents and warrants to Employer that Employee is not currently subject to a non-competition, confidentiality or other such agreement with a former employer that prohibits or restricts Employee from working for Employer or performing the services that Employee’s position requires Employee to perform. Further, Employee represents and warrants to Employer that Employee has not brought any proprietary information, customer lists, trade secrets, confidential information, or any other property with Employee that belongs to any of Employee’s former employers. Employee agrees and understands that Employer does not want Employee to utilize any such confidential or proprietary information, trade secrets, or property on Employer’s behalf.
ARTICLE 4 - DUTIES
4.1Outside Activities.  Employee's position with Employer is full-time. Therefore, throughout the duration of Employee’s employment, except for periods of illness or vacation, Employee shall devote Employee’s full working time and attention to the business and affairs of Employer, acting in the best interests of Employer at all times. Employee will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or unreasonably interfere with the rendition of Employee’s services to Employer either directly or indirectly, without the prior written consent of Employer; provided that nothing herein shall preclude Employee from managing Employee’s personal and/or family investments and/or engaging in charitable and civic activities, including accepting appointment to serve on any board of directors or trustees of any charitable organization; provided, that in
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the aggregate, such activities do not conflict or interfere in more than a de minimis way with the performance of Employee’s duties hereunder.
4.2Duties; Reporting.  Employee shall have duties and responsibilities consistent with Employee’s position and such other duties and responsibilities as may be assigned to Employee from time to time by the Board, consistent with Employee’s position.  Subject to Employee’s right to terminate Employee’s employment for Good Reason (as defined below), Employer retains full authority to change Employee’s duties and responsibilities and reporting relationships and to assign new duties and responsibilities as may be necessary from time to time providing that they are consistent with Employee’s position. Employee’s position is classified as “exempt” for purposes of applicable wage and hour law and therefore, Employee will not be eligible for overtime pay.
4.3Board Appointment.  Employee will be appointed to the Board of Employer effective as of the Start Date.
4.4Travel.  Employee acknowledges that the duties of Employee’s position may require some travel within and outside the United States. Employee’s travel expenses incurred in connection with the performance of Employee’s job duties for Employer will be reimbursed in accordance with Employer’s expense reimbursement policies and procedures in effect from time to time and Section 5.6 below.
4.5Compliance.  Employee shall perform all duties in accordance with the charter documents and by-laws of Employer, the instructions of the Board, and all of Employer’s policies and codes of conduct, rules and regulations in effect from time to time. Employee acknowledges having received a copy of, and having taken cognizance of, all of the provisions of Employer’s policies and codes of conduct, and undertakes to keep up-to-date with additions, modifications and updates thereto. The terms and conditions of Employee’s employment, including those set forth in this Agreement, are subject to change to the extent required to comply with applicable law, rule or regulation, including the rules and regulations of the Securities Exchange Commission and the Nasdaq Stock Market.
4.6Corporate Opportunities.  Any business opportunities related in any way to the business and affairs of the Employer or any of its Affiliates which become known to Employee during Employee’s employment hereunder shall be fully disclosed and made available to Employer and shall not be appropriated by Employee under any circumstance without the prior written consent of Employer.
4.7Good Faith Concerns.  Recognizing Employer’s commitment to achieving the highest standards of openness and accountability, Employee shall raise, in a prompt manner, any good faith concerns Employee has regarding the conduct of Employer’s business or compliance with Employer’s financial, legal or reporting obligations. Such good faith concerns should be brought to the attention of the Board.
ARTICLE 5 - COMPENSATION AND BENEFITS
5.1Base Salary.  During Employee’s employment, Employee will be compensated at an annual base salary rate of $400,000 (“Base Salary”) less withholdings and deductions required by law or authorized by Employee, subject to Employer’s payroll practices in place from time to time. Upon the achievement of certain performance measures, and subject to review and approval by the Compensation Committee of the Board, the Base Salary shall increase. In addition, the Base Salary will be reviewed by the Board annually for potential additional adjustment on the basis of performance; and Employee shall be eligible, at the Board’s sole discretion, for annual merit and incentive-based salary increases consistent with Employer’s procedures, policies and practices. If the Base Salary is increased from time to time during the term of Employee’s employment, the increased amount shall become the “Base Salary.”
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5.2Signing Bonus. Employer agrees to pay a one-time signing bonus to Employee in the total gross amount of $25,000, less applicable withholdings and deductions (“Signing Bonus”). The Signing Bonus will be distributed to Employee in accordance with Employer’s regular payroll practices within thirty (30) days of Employee’s Start Date.
5.3Cash Incentive Compensation.  In addition to Base Salary, Employee is eligible for cash incentive compensation pursuant to Employer’s management incentive compensation plan. Payment of cash incentive compensation will be subject to certain targets and goals set annually by the Compensation Committee or the Board, with the target amount of any cash incentive compensation for any calendar year to be approved by the Compensation Committee of the Board, which target in no event shall be more than 50% (subject to performance of the specified objectives) of Employee’s Base Salary in effect from time to time (such bonus to be pro-rated for Employee’s first year of employment based on the portion of the year for which Employee is employed by Employer).  Employer shall pay any such cash incentive compensation earned by Employee for a calendar year on or before March 15 of the following year provided that Employee is employed on such date. Except as expressly set forth in Section 6.3 and Section 6.4 below, Employee will not be entitled to receive cash incentive compensation for any calendar year in which Employee’s employment is terminated for any reason by Employer or Employee.
5.4Equity Compensation.  As soon as reasonably practicable after the Start Date, Employee will be granted an option to purchase a number of shares of common stock equal to 4% of Company’s outstanding common stock as of the date hereof pursuant to Employer’s equity incentive plan (the “Equity Plan”). The exercise price of such option will be equal to the fair market value of a share of Employer’s common stock as of the grant date, as determined by the Board in accordance with the terms of the Equity Plan.  Such option will be an incentive stock option, will have a 10-year term and will be subject to vesting as follows: 25% will vest as of one year from the Start Date, and the remaining 75% of the shares will then vest in equal installments each month thereafter over the following 36 months.  As soon as reasonably practicable following the first offering of common stock or securities convertible into common stock for purposes of financing Employer after the Start Date, Employee will be granted an additional stock option or other equity award in an amount that maintains Employee’s fully diluted ownership percentage at 4%.  Employee will also be eligible for future stock options or other equity awards based upon the recommendation of the Compensation Committee. If Employee meets or exceeds the targets and goals as set by the Board or Compensation Committee, then the Board will recommend that the Compensation Committee consider granting Employee equity awards in an amount that maintains Employee’s fully diluted ownership percentage at 4%. However, the grant of any such awards will be solely in the discretion of the Compensation Committee.
5.5Benefits.  Employee shall be eligible for participation in the following benefits, perquisites and allowances:
		(a)
	Group Benefits.  Subject to the terms and conditions of applicable plans and policies, Employee shall be eligible to participate in all group insured benefit plans and policies provided by Employer to other executives of Employer employed in the United States, as such plans and policies may be amended from time to time, without notice.

		(b)
	Paid Time Off.  Employee shall be entitled to twenty five (25) paid vacation per calendar year, in addition to Employer recognized holidays and paid sick time, if any, in accordance with the Employer’s practices and policies in place from time to time and applicable law. Any such vacation must be taken for periods and at intervals that are appropriate and consistent with the proper performance of Employee’s duties. To the extent permitted by applicable law, accumulated vacation time or pay may not be carried forward except with

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the prior approval of the Board. Employer will pay out accrued but unused vacation time at the time of Employee’s separation of employment for any reason.
5.6Reimbursement of Expenses.  Upon presentation of proper receipts or other proof of expenditure and subject to such reasonable guidelines or limitations provided by Employer from time to time, Employer shall reimburse Employee for all reasonable and necessary business and travel expenses actually incurred by Employee directly in connection with the business affairs of Employer and the performance of Employee’s duties hereunder, including reimbursement for reasonable travel and lodging expenses related to Employee’s travel to and from Employer’s principal office in the performance of his job duties (“Commuting Expenses”). Employee shall comply with such reasonable limitations and reporting requirements with respect to such expenses, including provision of receipts and related documentation, as Employer may establish from time to time.
5.7Relocation Reimbursement.  If, during Employee’s employment, Employee relocates permanently to the area where Employer’s principal office is located (“Permanent Relocation”), the Employer will make a fully taxable lump sum payment to Employee to cover Reasonable Moving Expenses as defined herein (“Relocation Reimbursement”). The Relocation Reimbursement will be paid within thirty (30) days after Employee has submitted to the Employer acceptable documentation supporting such expenses in accordance with the Employer’s expense reimbursement policy in place at the time. However, if Employee is terminated for Cause as defined herein, or resigns other than for Good Reason, as defined herein, within six (6) months of such Relocation Reimbursement, Employee agrees to repay to the Employer such Relocation Reimbursement within three (3) months of Employee’s separation date from Employer. For purposes of this Section, “Reasonable Moving Expenses” means Employee’s actual out of pocket expenses (but not any loss on the sale of your current residence, the purchase price of Employee’s new residence, or real estate-related taxes or attorneys’ fees) related to (a) the disposition of Employee’s then current principal residence, (b) relocation of Employee’s principal residence to a location within 50 miles of the principal office of Employer, and (c) other moving expenses incurred to relocate household goods, furnishings, and personal belongings from Employee’s then current residence to Employee’s new residence. Following any permanent relocation, Employee will no longer be eligible for reimbursement of any Commuting Expenses as defined in Section 5.6.
5.8No Other Benefits.  Employee is not entitled to any other payment, benefit, perquisite, allowance or entitlement other than as specifically set out in this Agreement or as otherwise agreed to in writing and signed by the Employer and the Employee.
ARTICLE 6 - SEPARATION OF EMPLOYMENT
6.1Termination.  Notwithstanding any other provision in this Agreement, Employee's employment may be terminated at any time as follows:
		(a)
	Cause.  Employer may terminate this Agreement and the Employee’s employment at any time for Cause, as defined above, with or without advance notice.

		(b)
	Without Cause.  Employer may terminate this Agreement and Employee’s employment at any time without Cause and for any reason or no reason whatsoever, with or without advance notice.

		(c)
	Resignation.  Employee may terminate this Agreement and Employee’s employment at any time by providing written notice to the Board specifying the date of resignation (such date being not less than fourteen (14) days after the date of the Employee’s written notice).  Employer shall have the right to determine, in its sole discretion, whether Employee will

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continue to actively work during such notice period, providing that Employee will continue to receive his compensation and benefits through the notice period.
		(d)
	Death. Employee’s employment will automatically terminate upon Employee’s death.

6.2Termination by Resignation Without Good Reason, for Cause, or by Death.  If this Agreement and the Executive’s employment is terminated as a result of Employee’s resignation (without Good Reason), for Cause, as defined herein, or by Employee’s death, Employee (or Employee’s estate) will be paid (a) any unpaid salary as may be due and owing through the Employee’s termination date; (b) reimbursement for any unreimbursed expenses incurred through the termination date; and (c) all other benefits earned, vested, and accrued through the termination date (collectively, “Accrued Amounts”). Employee’s participation in all bonus plans or other equity or profit participation plans terminates immediately upon the Employee’s termination and the Employee shall not be entitled to any additional bonus or incentive award, pro rata or otherwise.
6.3Termination Without Cause or For Good Reason.
		(a)
	If Employee’s employment is terminated by Employer without Cause, as defined herein, or by Employee for Good Reason, as defined herein, then Employee will receive the Accrued Amounts as defined in Section 6.2 and (i) Employer will pay Employee severance in an amount equal to 12 months of Employee’s current Base Salary in effect at the time of the termination, which will be paid on a regular payroll basis over 12 months, (ii) 100% of any unvested shares under any options to purchase shares of Employer common stock Employee holds (“Options”) shall immediately vest, and Employee shall be permitted to exercise all shares under Employee’s Options immediately or at any time during the five-year period (but not after the end of each Option’s original term) following Employee’s termination date, (iii) Employer will also pay Employee a pro rata portion of any unpaid cash incentive compensation for the calendar year in which Employee’s termination occurs (that pro-rated cash incentive compensation shall be based on whether Employee’s objectives were achieved (also pro-rated to the extent possible) during the portion of the year before Employee’s termination date, and the pro-rated amount shall be based on the number of days in that portion, as compared with the entire year), and (iv) if Employee timely and effectively elects continuation coverage under Employer’s group health plans pursuant to section 4980B of the Code, as amended (“COBRA”) or similar state law, Employer will pay or reimburse the premiums for such coverage of Employee (and Employee’s dependents, if applicable) at the same rate it pays for active employees for a period of 12 months from Employee’s termination date; provided, however, that Employer’s obligation to make such payments shall immediately expire if Employee ceases to be eligible for continuation coverage under COBRA or similar state law or otherwise terminates such coverage or the date you become eligible for group health plan coverage with a new employer, whichever is earlier (the benefits referred to in (i) through (iv) above are collectively referred to herein as the “Separation Benefits”).

		(b)
	As a condition precedent to the payment of the Separation Benefits, Employee agrees to execute and deliver a full and final release in substantially the form of Exhibit A, from all actions or claims of any kind, known and unknown, in connection with the Employee’s employment with Employer or the termination thereof against Employer, its Affiliates, and all of their respective officers, directors, trustees, shareholders, employees, attorneys, insurers and agents (“Release”). No Separation Benefits shall be provided to Employee until the Release has been executed and returned by the Employee and any applicable

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rescission periods as set forth in the Release have expired without any rescission or attempted rescission by Employee.
6.4Change in Control. Upon the occurrence of a Change in Control (as defined in the Employer’s Second Amended and Restated 2003 Stock Incentive Plan), Employer agrees that (a) 100% of any unvested shares under Employer’s Options shall immediately vest, and (b) if at any time after the Change in Control Employee’s employment is terminated by Employer without Cause, as defined herein, or by Employee for Good Reason, as defined herein, Employee will also receive the Separation Benefits defined in Section 6.3(a) of this Agreement.
6.5Resignation as Director and Officer.  Employee covenants and agrees that, upon termination of Employee’s employment, however caused, Employee shall immediately tender Employee’s resignation from all officer and director positions then held by Employee at Employer or any of the Affiliates, such resignation to be effective upon the date of Employee’s termination, unless the Board determines otherwise in its sole discretion.  If Employee fails to resign as set out above, Employee will be deemed to have resigned from all such officer and director positions, and Employer is hereby authorized by Employee to appoint any person in Employee’s name and on Employee’s behalf to sign any documents or do anything necessary or required to give effect to such resignation.
6.6Return of Property.  All equipment, mobile devices, computers, keys, pass cards, credit cards, software, material, data, written correspondence, memoranda, communication, reports, or other documents or property pertaining to the business of the Employer used or produced by Employee in connection with Employee’s employment, or in Employee’s possession or under Employee’s control, shall at all times remain the property of Employer. Employee shall return all property of Employer in Employee’s possession or control in good condition forthwith upon any request by Employer or upon any termination of this Agreement and of the Employee's employment (regardless of the reason for such termination).
ARTICLE 7 - GENERAL CONTRACT TERMS
7.1Recitals.  The Employer and the Employee represent and warrant to each other that the Recitals set out above are true.
7.2Currency.  All amounts payable pursuant to this Agreement are expressed in and shall be paid in U.S. currency.
7.3Withholding.  All amounts paid or payable and all benefits, perquisites, allowances or entitlements provided to Employee under this Agreement are subject to applicable taxes and withholdings. Accordingly, Employer shall be entitled to deduct and withhold from any amount payable to Employee hereunder such sums that Employer is required to withhold pursuant to any federal, state, local or foreign withholding or other applicable taxes or levies.  Notwithstanding the foregoing, Employee acknowledges and agrees that Employee is solely responsible for all non-employer tax liability arising from Employee’s receipt of any payments, benefits, perquisites, allowances or entitlements as set out in this Agreement.
7.4Rights and Waivers.  All rights and remedies of the parties are separate and cumulative, and none of them, whether exercised or not, shall be deemed to be to the exclusion of any other rights or remedies or shall be deemed to limit or prejudice any other legal or equitable rights or remedies which either of the parties may have. Any purported waiver of any default, breach or non-compliance under this Agreement is not effective unless in writing and signed by the party to be bound by the waiver. No waiver shall be inferred from or implied by any failure to act or delay in acting by a party in respect of any default, breach or non-observance or by anything done or omitted to be done by the other party. The waiver by a party of any default, breach or non-compliance under this Agreement shall not operate as a waiver of that party's rights
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under this Agreement in respect of any continuing or subsequent default, breach or non-observance (whether of the same or any other nature).
7.5Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of the prohibition or unenforceability and shall be severed from the balance of this Agreement, all without affecting the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. If any portion is deemed unenforceable by virtue of its scope or limitation, Employer and Employee agree that a court of competent jurisdiction shall modify such provision to make it enforceable to the fullest extent permitted by law.
7.6Notices.  Any notice required or permitted to be given under this Agreement shall be in writing and shall be properly given if personally delivered, delivered by e-mail transmission (with confirmation of receipt) or mailed by prepaid registered mail addressed as follows:
	to the Employer at:
ReShape Lifesciences Inc.
1001 Calle Amanecer
San Clemente, CA 92673
Attention: Dan W. Gladney, Executive Chair of the Board
E-mail: [●]
​
to the Employee at:
Paul F. Hickey
[●]
E-mail: [●]
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or to such other address as the parties may from time to time specify by notice given in accordance herewith.  Any notice so given shall be conclusively deemed to have been given or made on the day of delivery, if personally delivered, or if delivered by facsimile transmission or mailed as aforesaid, upon the date shown on the facsimile confirmation of receipt or on the postal return receipt as the date upon which the envelope containing such notice was actually received by the addressee.
7.7Successors and Assigns.  This Agreement shall inure to the benefit of, and be binding on, the parties and their respective heirs, administrators, executors, successors (whether direct or indirect, by purchase, acquisition, merger, consolidation or otherwise) and permitted assigns.  Employer shall have the right to assign this Agreement, or the benefit thereof, to any of its Affiliates or to any successor (whether direct or indirect, by purchase, acquisition, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of Employer. Employee, by Employee's signature hereto, expressly consents to such assignment and, provided that such successor agrees to assume and be bound by the terms and conditions of this Agreement, all references to “Employer” hereunder shall include its successor.  Employee shall not assign or transfer, whether absolutely, by way of security or otherwise, all or any part of Employee’s rights or obligations under this Agreement without the prior consent of Employer.
7.8Amendment.  No amendment of this Agreement will be effective unless made in writing and signed by the parties.
7.9Section 409A.  To the extent applicable, this Agreement shall be interpreted and administered in accordance with, and incorporate the terms and conditions required by, Section 409A of the Internal
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Revenue Code of 1986, as amended, and the Department of Treasury regulations and other interpretive guidelines issued thereunder (collectively, “Section 409A”).  Notwithstanding any provision to the contrary in this Agreement: (i) no amount payable in connection with Employee’s termination of employment shall be paid to Employee unless the termination of Employee’s employment constitutes a “separation from service” within the meaning of Section 409A, and if Employee incurs a termination of employment that does not constitute a separation from service, as so defined, Employee’s right to such payments shall vest but payment shall be deferred until the date on which Employee incurs a separation from service, or die; (ii) if, on the date on which Employee incurs a separation from service, Employee is a “specified employee” as defined in Section 409A, any amount that constitutes deferred compensation and that becomes payable by reason of such separation from service (including any amount described in clause (i)) shall be deferred until the earlier of the first (1st) day of the seventh (7th) month following the month that includes the separation from service or Employee’s death; (iii) for purposes of Section 409A, Employee’s right to receive installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments; and (iv) to the extent that any reimbursement of expenses or in-kind benefits constitutes “deferred compensation” under Section 409A, such reimbursement or benefit shall be provided no later than December 31 of the year following the year in which the expense was incurred, the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, and the amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other year.
7.10Entire Agreement.  This Agreement, together with the Employee’s Employee Proprietary Information Agreement and Dispute Resolution Procedure & Voluntary Mutual Binding Arbitration Agreement, constitute the entire agreement between the parties pertaining to the subject matter of this Agreement and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, including the offer letter, dated July 22, 2022, between Employee and Employer. There are no conditions, warranties, representations or other agreements between the parties in connection with the subject matter of this Agreement (whether oral or written, express or implied, statutory or otherwise) except as specifically set out in this Agreement.
7.11Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of California (without regard to the conflict of laws principles of any jurisdiction).
7.12Headings.  The division of this Agreement into Sections and the insertion of headings are for convenience or reference only and shall not affect the construction or interpretation of this Agreement.
7.13Independent Legal Advice.  The parties acknowledge that, prior to executing this Agreement, they have each had the opportunity to obtain independent legal advice and that they fully understand the nature of this Agreement and that they are entering into this Agreement voluntarily.
7.14Reimbursement of Attorneys’ Fees. Upon receipt by Company of a statement for legal services from the attorneys representing Employee, Company shall reimburse Employee or pay on behalf of Employee the reasonable and necessary attorneys’ fees and associated expenses incurred by Employee in connection with the negotiation of the July 22, 2022 offer letter and this Agreement, provided, however, that such fees and expenses shall not exceed $5,000.00.
7.15Ambiguities.  As each party and its legal counsel have participated in the review and revision of this Agreement, any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in interpreting this Agreement.
7.16Counterparts.  This Agreement may be executed in several counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument.  Signature
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pages may be detached from the counterparts and attached to a single copy of this Agreement to physically form one document.  Facsimile execution and delivery of this Agreement will be legal, valid and binding execution and delivery for all purposes.
[Signature page follows]
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IN WITNESS WHEREOF this Agreement has been signed by the parties hereto with effect on the date set out above.
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​ ​/s/ Dan W. Gladney
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	Date: November 1, 2022
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Date: November 1, 2022
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	RESHAPE LIFESCIENCES INC. (“EMPLOYER”)
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By:  ​ ​/s/ Dan W. Gladney​ ​​ ​​ ​
Name: Dan W. Gladney
Title: Executive Chair of the Board
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PAUL F. HICKEY (“EMPLOYEE”)
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​ ​/s/ Paul F. Hickey​ ​​ ​​ ​
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Exhibit A
Form of Confidential Separation Agreement and General Release
See attached.
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CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE
This Confidential Separation Agreement and General Release (this “Agreement”) is entered into by and between Paul F. Hickey (“you”) and ReShape Lifesciences Inc. (“ReShape”).
WHEREAS, you and ReShape entered into an Employment Agreement dated November 1, 2022 (“Employment Agreement”) which terminates effective [●], 20[●], except as to certain provisions outlined below;
WHEREAS, ReShape wishes to provide you with the separation benefits described in Section 2 below; and
WHEREAS, you and ReShape want to fully and finally settle all issues, differences, and claims, whether potential or actual, between you and ReShape, including, but not limited to, any claim that might arise out of your employment with ReShape or the termination of your employment with ReShape;
NOW, THEREFORE, in consideration of the provisions and of the mutual covenants contained herein, you and ReShape agree as follows:
1.Separation from Employment.  Effective [●], 20[●] (your “date of separation”), your employment with ReShape terminates and you resign from the Board of Directors of ReShape.  Except as provided in this Agreement, all benefits and privileges of employment end as of your date of separation.
2.Accrued Salary and Unpaid Vacation and Expenses.  ReShape has or will pay your salary through the date of separation plus unused vacation days based on the pro-rata number of annual vacation days you are entitled less vacation days used as of the date of separation, and reimburse you for all business expenses incurred through the date of separation.
3.Separation Benefits.  As consideration for your promises and obligations under this Agreement, and subject to the terms and conditions of this Agreement, including the release of claims set forth below, ReShape agrees to pay you (a) the gross amount of $[●], which amount represents 12 months of your base salary as of your date of separation (“Separation Pay”) plus (b) the gross amount of $[●], which represents a pro rata portion of any unpaid cash incentive compensation for calendar year 20[●] (“Incentive Compensation”) in accordance with Section 6.3(a)(iii) of your Employment Agreement, in each case less applicable deductions and withholdings for state and federal taxes.  The Separation Pay will be divided and paid to you in substantially equal periodic payments at the usual and customary pay intervals of ReShape, less deductions and withholdings.  The Incentive Compensation shall be paid to you by March 15 of the year after the calendar year for which the Incentive Compensation was earned.  You agree that you are not entitled to the separation benefits provided to you in this Agreement if you do not sign this Agreement or if you rescind or attempt to rescind your release of claims under this Agreement.
4.COBRA Premium Payments/Reimbursement.  In accordance with Section 6.3(a)(iv) of your Employment Agreement, ReShape agrees to reimburse you for COBRA premiums paid by you or on your behalf for continuation coverage for twelve (12) months following your termination.  Any reimbursement made to you for COBRA premiums will be treated as taxable by ReShape.  Except as otherwise provided in this Section 3, the benefits to which you (or, as applicable, your spouse and eligible dependents) may be entitled upon termination of your employment shall be determined and paid in accordance with such plans, policies and applicable laws.
5.Stock Options.  All options to purchase shares of common stock of ReShape held by you (the “Options”) are subject to the terms of one or more stock option agreements between you and the
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Company (each, an “Option Agreement”) and were granted pursuant to the ReShape Inc. Amended and Restated 2003 Stock Incentive Plan, as amended, or its successor plan (the “Plan”).  Pursuant to the terms and conditions set forth in the Option Agreements, ReShape agrees that, notwithstanding anything to the contrary set forth in such Option Agreements or the Plan, 100% of any unvested shares under any Options shall immediately vest and you shall be permitted to exercise any Option immediately or at any time during the five-year period following your date of separation (but not after the end of each Option’s original term).  The parties agree and acknowledge that, with respect to any Options that were intended by the parties to be treated as “incentive stock options” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, such Options, to the extent they may be exercised by you more than 90 days following your date of separation, shall be treated as non-qualified options, notwithstanding any provision in the Option Agreements to the contrary.
6.Survival of Terms of Employment and Related Agreements.  All provisions of the Employment Agreement, Indemnification Agreement, Employee Proprietary Information Agreement, and Dispute Resolution Procedure & Voluntary Mutual Binding Arbitration Agreement that, by their terms, survive the termination of your employment will continue in full force and effect and are not released, negated or otherwise affected by this Agreement.
7.Return of ReShape Property.  You acknowledge that, on or before the date you sign this Agreement, you have returned all ReShape property in your possession, including, but not limited to, all files, memoranda, documents, records, copies of the foregoing, any ReShape credit card, computer, fax machine, printer, copier, keys, access cards, and any other property of ReShape in your possession.  You also acknowledge that, on or before the date you sign this Agreement, you have provided ReShape with any and all pass codes and/or personal identification numbers used by you to access the ReShape computer system, e-mail system, and/or the Internet, and/or documents or files contained on and saved in the ReShape computer system.
8.Duty to Cooperate.  You agree that, beginning on the date you are presented with this Agreement, you will cooperate with ReShape with respect to the transition of your duties, the preservation of effective operations and customer service, and ReShape’s strategic and commercial initiatives.  As part of your agreement to cooperate, you will provide a list identifying the status of major projects under way, pending customer interactions, the status of sale cycles with customers, the names and contact information of key contacts at customers, and any other information reasonably requested by ReShape regarding your duties and responsibilities.  You further agree that, in the 30 day period following your acceptance of this Agreement you will periodically make yourself accessible and available during normal business hours for consultation with ReShape representatives in connection with the transition of your duties and responsibilities.  You agree that such consultation may include appearing from time to time at the office of ReShape for conferences.
9.Confidentiality.  You agree that the existence and terms and conditions of this Agreement shall remain confidential and that you will not disclose any information concerning the provisions of this Agreement to any person or entity, including, but not limited to, any present or former employee of ReShape.  These confidentiality provisions are subject to the following exceptions:  you may disclose the provisions of this Agreement to your attorneys, accountants, tax and financial advisors, and immediate family, or in the course of legal proceedings involving ReShape, or in response to a subpoena, court order, or inquiry by a government agency.  You further agree that, if any information concerning the provisions of this Agreement is revealed as permitted by this section, you shall inform the recipient of the information that it is confidential, and the recipient shall agree to keep the information confidential.
10.Release.  By this Agreement, you intend to settle any and all claims that you have or may have against ReShape as a result of ReShape hiring you, your employment with ReShape, and the
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decision to terminate your employment with ReShape.  You agree that, in exchange for ReShape’s promises in this Agreement, and in exchange for the consideration provided to you by ReShape, described above in Section 2, you, on behalf of your heirs, successors and assigns, hereby release and discharge ReShape, its predecessors, successors, assigns, parents, affiliates, subsidiaries, and related companies, and their officers, directors, shareholders, agents, servants, employees, and insurers (collectively “the Released Parties”) from all liability for damages and from all claims that you may have against the Released Parties occurring up through the date you sign this Agreement.  You understand and agree that your release of claims in this Agreement includes, but is not limited to, any claims you may have under:  Title VII of the Federal Civil Rights Act of 1964, as amended; the Americans with Disabilities Act; the Equal Pay Act; the Employee Retirement Income Security Act; the Age Discrimination in Employment Act of 1967, as amended; the Older Workers Benefit Protection Act; the Family and Medical Leave Act; the Worker Adjustment and Retraining Notification Act of 1988; the False Claims Act; the California Constitution; the California Labor Code (including but not limited to Sections 132a and 4553); the California Fair Employment & Housing Act; the California Government Code; the California Civil Code; the California Penal Code; or any other federal, state, or local statute, ordinance, or law.
You also agree and understand that you are giving up all other claims, whether grounded in contract or tort theories, including but not limited to:  wrongful discharge; breach of contract; any claim for unpaid compensation (including, but not limited to, any claims for vacation, PTO or severance except as set forth in this Agreement, or for incentive compensation); tortious interference with contractual relations; promissory estoppel; detrimental reliance; breach of the implied covenant of good faith and fair dealing; breach of express or implied promise; breach of manuals or other policies; breach of fiduciary duty; assault; battery; fraud; false imprisonment; invasion of privacy; intentional or negligent misrepresentation; defamation, including libel, slander, discharge defamation and self-publication defamation; discharge in violation of public policy; whistleblower; qui tam actions; intentional or negligent infliction of emotional distress; or any other theory, whether legal or equitable.
You understand that nothing contained in this Agreement, including but not limited to this Section 9, will be interpreted to prevent you from filing a charge with the Equal Employment Opportunity Commission (“EEOC”), or any other governmental agency such as the California Department of Fair Employment and Housing (“DFEH”), or from participating in or cooperating with an EEOC or other governmental agency investigation or proceeding.  However, you agree that you are waiving the right to monetary damages or other individual legal or equitable relief awarded as a result of any such proceeding.
You are not aware of any other facts, evidence, allegations, claims, liabilities, or demands relating to alleged or potential violations of law that may give rise to any claim or liability on the part of any Released Party under the Securities Exchange Act of 1934, the Sarbanes–Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the False Claims Act, the Anti-kickback Statute.  You understand that nothing in this Agreement interferes with your right to file a complaint, charge or report with any law enforcement agency, with the Securities and Exchange Commission (“SEC”) or other regulatory body, or to participate in any manner in an SEC or other governmental investigation or proceeding under any such law, statute or regulation, or to require notification or prior approval by ReShape of any such a complaint, charge or report.  You understand and agree, however, that you waive your right to recover any whistleblower award under the Securities Exchange Act of 1934, the Sarbanes–Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or other individual relief in any administrative or legal action whether brought by the SEC or other governmental or law enforcement agency, you, or any other party, unless and to the extent that such waiver is contrary to law.  You agree that the Released Parties reserve any and all defenses which they might have against any such allegations or claims brought by you or on your behalf.  You understand that ReShape is relying on your representations in this Agreement.
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You understand and have been advised that the above release of your claims is subject to the terms of the Older Workers Benefit Protection Act (“OWBPA”).  The OWBPA provides that an individual cannot waive a right or claim under the Age Discrimination in Employment Act (“ADEA”) unless the waiver is knowing and voluntary.  You agree that you have been advised of the OWBPA and agree that you are signing this Agreement voluntarily, and with full knowledge of its consequences.  You understand that ReShape is giving you at least 21 days from the date you received a copy of this Agreement to decide whether you want to sign it.  You acknowledge that you have been advised to use this time to consult with an attorney about the effect of this Agreement.  If you sign this Agreement before the end of the 21 day period it will be your personal, voluntary decision to do so, and will be done with full knowledge of your legal rights.  You agree that material and/or immaterial changes to this Agreement will not restart the running of this consideration period.
You understand and for valuable consideration hereby expressly waive all of the rights and benefits of Section 1542 of the California Civil Code, which section reads as follows:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
11.Time to Accept.  You are hereby informed that the terms of this Agreement shall be open for acceptance and execution by you through and including the date that is 21 days after the date you received a copy of this Agreement, during which time you may consult with an attorney and consider whether to accept this Agreement.  Changes to this Agreement, whether material or immaterial, will not restart the running of this acceptance period.  You hereby are advised to consult with an attorney prior to signing this Agreement.
12.Right to Revoke and Rescind.  You are hereby informed of your right to revoke your release of claims, insofar as it extends to potential claims under the ADEA, by informing ReShape of your intent to revoke your release of claims within 7 calendar days following your signing of this Agreement.  You understand that any such revocation or rescission must be made in writing and delivered by hand or by certified mail, return receipt requested, postmarked on or before the last day within the applicable revocation period to:  Chief Financial Officer, ReShape Lifesciences Inc. 1001 Calle Amanecer, San Clemente, CA 92673.
If you exercise your right to revoke or rescind this Agreement, ReShape may, at its option, either nullify this Agreement in its entirety, or keep it in effect in all respects other than as to that portion of your release of claims that you have revoked or rescinded.  You agree and understand that if ReShape chooses to nullify the Agreement in its entirety, ReShape will have no obligations under this Agreement to you or to others whose rights derive from you.
13.Entire Agreement.  This Agreement, as well as the exhibits hereto and any agreements referenced herein, is the final, complete and exclusive agreement of the parties and sets forth the entire agreement between ReShape and you with respect to your employment by ReShape, and there are no undertakings, covenants or commitments other than as set forth herein.  The Agreement may not be altered or amended, except by a writing executed by you and a member of the Board.  Except as otherwise indicated, this Agreement supersedes, terminates, replaces and supplants any and all prior understandings or agreements between the parties relating in any way to you hiring or employment by ReShape.
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14.Governing Law.  The laws of the State of California will govern the validity, construction and performance of this Agreement, without regard to the conflict of law provisions of any other jurisdictions.  If any part of this Agreement is construed to be in violation of any law, such part shall be modified to achieve the objective of the parties to the fullest extent permitted and the balance of this Agreement shall remain in full force and effect. If such modification is not possible, said provision will be deemed severable from the remaining provisions of this Agreement and the balance of this Agreement shall remain in full force and effect.
15.Remedies.  Any dispute between ReShape and you under this Agreement or the Employment Agreement will be resolved in accordance with the terms and conditions of the Arbitration Agreement.
16.No Admission.  Nothing in this Agreement is intended to be, and nothing will be deemed to be, an admission of liability by ReShape or you that either party has violated any state or federal statute, local ordinance or principle of common law, or that either party has engaged in any wrongdoing.
17.Waiver.  No waiver of any provision of this Agreement shall be binding unless executed in writing by the party making the waiver.  The waiver by either party of a breach by the other party of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach.
[Signature page follows]
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IN WITNESS WHEREOF, the parties have duly executed this Agreement on the dates set forth below to be effective as of the date shown below.
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I acknowledge and agree that I have read this Agreement in its entirety and that I agree to the conditions and obligations set forth herein.  Further, I agree that I have had adequate time to consider the terms of this Agreement and that I am voluntarily entering into this Agreement with a full understanding of its meaning.  I understand that I am hereby advised to consult with an attorney before signing this Agreement.
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Dated:  ​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​
Paul F. Hickey
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RESHAPE LIFESCIENCES INC.
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Dated:  ​ ​​ ​​ ​​ ​By​ ​​ ​​ ​​ ​​ ​​ ​
Name:
Its:

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