Document:

Document

Exhibit 4.2

CERTIFICATE AS TO ACTIONS TAKEN BY OFFICER
OF SOUTHERN CALIFORNIA EDISON COMPANY
Adopted December 1, 2020
			
	RE:       CREATION AND ISSUANCE OF ONE NEW SERIES

	              OF FIRST AND REFUNDING MORTGAGE BONDS 

WHEREAS, by resolution adopted on April 22, 2020 entitled “Resolution Re:  Authorization of Increase in Short-Term Borrowings,” (the “Resolution”) the Audit and Finance Committee (“AFC”) of the Board of Directors of this corporation, respectively delegated to the undersigned officer the authority to authorize and create an additional bonded indebtedness of this corporation to be represented by one new series of its First and Refunding Mortgage Bonds, Series 2020D (the “Series 2020D Bonds”) and take all other actions necessary to create the Series 2020D Bonds and cause the Series 2020D Bonds to be issued, sold, and delivered; 
NOW, THEREFORE, BE IT RESOLVED, that pursuant to the Resolution and the Trust Indenture dated as of October 1, 1923, between this corporation and The Bank of New York Mellon Trust Company, N.A. (successor to Harris Trust and Savings Bank) and D. G. Donovan (successor to Pacific-Southwest Trust & Savings Bank), as Trustees, as amended and supplemented, including as supplemented or proposed to be supplemented by the One Hundred Forty-Fourth Supplemental Indenture (the “Supplemental Indenture” and collectively, the “Trust Indenture”), the undersigned officer hereby executes and delivers this certificate and takes the actions set forth herein.
BE IT FURTHER RESOLVED, that the undersigned officer hereby authorizes and creates an authorized bonded indebtedness of this corporation in the initial aggregate principal amount of $900,000,000, which shall be an increase of, and in addition to, all presently existing 

authorized bonded indebtedness of this corporation, and which shall be represented by the Series 2020D Bonds.
BE IT FURTHER RESOLVED, that the President or any Vice President and the Secretary or any Assistant Secretary of this corporation are authorized and directed, pursuant to the provisions of Section 1 of Article Two of the Trust Indenture, to sign and present to The Bank of New York Mellon Trust Company, N.A., as Trustee, a certificate stating that the authorized bonded indebtedness of this corporation has been so increased.
BE IT FURTHER RESOLVED, that each of the Chairman of the Board, the Chief Executive Officer, the President, the Senior Vice President and Chief Financial Officer, the Vice President and Treasurer, or any Assistant Treasurer, or any of them acting alone, is authorized and directed to execute and deliver the One Hundred Forty-Fourth Supplemental Indenture, in such form as the officer acting may approve, such approval to be evidenced by the execution thereof, and to cause this corporation to perform all of its obligations under the One Hundred Forty-Fourth Supplemental Indenture.
BE IT FURTHER RESOLVED, that, subject to the execution and delivery of the One Hundred Forty-Fourth Supplemental Indenture, the Series 2020D Bonds, to be issued under and secured by the Trust Indenture, are hereby created in the initial aggregate principal amount of $900,000,000, and the Series 2020D Bonds are hereby designated as “First and Refunding Mortgage Bonds, Series 2020D, Due 2021”; the Series 2020D Bonds shall be dated as of their date of issuance, shall mature on December 3, 2021 and shall bear interest from December 4, 2020 at a floating rate equal to three-month LIBOR plus 0.27% thereof, payable on March 3, 2021, June 3, 2021, September 3. 2021 and at maturity on December 3, 2021 (each, a “Series 2020D Payment Date”); the principal of and premium, if any, and interest on the Series 2020D Bonds shall be 
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payable at the offices of The Bank of New York Mellon Trust Company, N.A., in Chicago, Illinois, or at such other agency or agencies as may be designated by this corporation; all principal, premium, if any, and interest shall be payable in such coin or currency of the United States of America as at the time of payment shall be legal tender for public and private debts; the Series 2020D Bonds shall be transferable only on the books of this corporation at the places designated above for the payment of the principal of and premium, if any, and interest on the Series 2020D Bonds, or at such other agency or agencies as may be designated by this corporation; the Series 2020D Bonds may not be redeemed prior to their stated maturity; the Series 2020D Bonds shall be issuable only as fully registered bonds, without coupons, in denominations of $1,000 and integral multiples of $1,000 in excess thereof; the definitive Series 2020D Bond shall be numbered R-1 upward; and the definitive Series 2020D Bonds, and the Certificate of Authentication to be endorsed upon each of the Series 2020D Bonds, shall be substantially in the following form with such legends thereon and changes therein as may be deemed necessary or appropriate by the officer or officers executing the same, and the blanks therein to be properly filled:
(Form of Definitive Series 2020D Bond)

SOUTHERN CALIFORNIA EDISON COMPANY
First and Refunding Mortgage Bonds, Series 2020D, Due 2021`
															
	No. ____			  $______________

SOUTHERN CALIFORNIA EDISON COMPANY, a corporation organized and existing under and by virtue of the laws of the State of California (hereinafter called the “Company”), for value received, hereby promises to pay to _____________________, the registered owner hereof, the principal sum of $900,000,000 on December 3, 2021, and to pay interest on the unpaid principal amount hereof to the registered owner hereof from December 4, 2020 at a floating interest rate as determined below, payable on March 3, 2021, June 3, 2021, September 3, 2021 and at maturity. Such interest shall be paid to the person in whose name this Bond is registered at the close of business on (1) the business day immediately preceding each interest payment date if this Bond is in book-entry only form, or (2) the 15th calendar day before each interest payment date if this Bond is not in book-entry only form.

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The amount of interest payable for any period shall be computed on the basis of the actual number of days elapsed in an interest period and a 360-day year.  An interest period is the period commencing on an interest payment date for each interest period, or on the issue date in the case of the initial interest period, and ending on the date preceding the next interest payment date, or maturity in the case of the final interest period.  The “determination date” for three-month LIBOR will be the second London Business Day (as defined below) immediately preceding the applicable interest period, and three-month LIBOR will be determined as described below.  The interest rate for each interest period will be reset quarterly on each interest payment date.

If the date of maturity of the bonds falls on a day that is not a LIBOR Business Day (as defined below), the related payment of principal and interest will be made on the next LIBOR Business Day as if it were made on the date that the payment was due, and no interest will accrue with respect to such postponement.  If any interest payment date (other than at maturity) falls on a day that is not a LIBOR Business Day, that interest payment date will be postponed to the next LIBOR Business Day, except that if that LIBOR Business Day is in the next calendar month, that interest payment date will be the immediately preceding LIBOR Business Day.
 
“LIBOR Business Day” means any day other than Saturday or Sunday or a day on which banking institutions or trust companies in the City of New York are required or authorized to close and that is also a London Business Day. 
 
“London Business Day” means any day on which dealings in deposits in U.S. dollars are transacted in the London interbank market.

LIBOR will be determined by the trustee as of the applicable determination date in accordance with the following provisions:
 
(a) the rate for deposits in United States dollars having a maturity of three months commencing on the first day of the applicable interest period that appears on Reuters Screen LIBOR01 Page (as defined below) as of 11:00 a.m., London time, on the applicable interest determination date,

(b) if no such rate appears, then the trustee will request the principal London offices of each of four major reference banks in the London interbank market (which may include affiliates of the underwriters), as selected by the Company, to provide the trustee with its offered quotation for deposits in United States dollars for the period of three months, commencing on the first day of the applicable interest period, to prime banks in the London interbank market at approximately 11:00 a.m., London time, on that interest determination date and in a principal amount that is representative for a single transaction in United States dollars in that market at that time. If at least two quotations are provided, then LIBOR on that determination date will be the arithmetic mean of those quotations. If fewer than two quotations are provided, then LIBOR on the determination date will be the arithmetic mean of the rates quoted at approximately 11:00 a.m., in The City of New York, on the determination date by three major banks in The City of New York (which may include affiliates of the underwriters), as selected by the Company, for loans in United States dollars to leading 
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European banks, having a three-month maturity and in a principal amount that is representative for a single transaction in United States dollars in that market at that time, and 
 
(c) if LIBOR cannot be determined on such determination date using the foregoing methods, then the LIBOR for the relevant interest period shall be the LIBOR as determined using the foregoing methods for the first day before such determination date on which LIBOR can be so determined. 
“Reuters Screen LIBOR01” means the display designated on page “LIBOR01” on Reuters (or such other page as may replace the LIBOR01 page on that service or any successor service for the purpose of displaying LIBOR for U.S. dollar deposits of major banks). 

Notwithstanding the two foregoing paragraphs, if the Company or its Designee determine on or prior to the relevant determination date that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the then current Benchmark, then (i) the Company shall promptly provide notice of such determination to the trustee and (ii) the provisions set forth below regarding the effect of a Benchmark Transition Event (the “benchmark transition provisions”) will thereafter apply to all determinations, calculations and quotations made or obtained for the purposes of calculating the rate and amount of interest payable on the mortgage bonds during a relevant interest period. In accordance with the benchmark transition provisions, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, the amount of interest that will be payable for each interest period on the mortgage bonds will be a rate per annum equal to the sum of the Benchmark Replacement and 0.27%, as determined by the Company or its Designee.

However, if the Company or its Designee determine that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the then-current Benchmark, but for any reason the Benchmark Replacement has not been determined as of the relevant determination date, the interest rate for the applicable interest period will be equal to the interest rate on the last determination date for the mortgage bonds, as determined by the Company or its Designee.

If the Company (or its Designee) determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any determination of the Benchmark on any date, the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the bonds in respect of such determination on such date and all determinations on all subsequent dates.

As used herein, the following terms have the following meanings: 
“Benchmark” means, initially, the Three-Month LIBOR Rate; provided that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the Three-Month LIBOR Rate or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement. 
“Benchmark Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement Adjustment for such Interpolated Benchmark (if there is such a Benchmark Replacement Adjustment); provided that if the Company (or its Designee) cannot determine the Interpolated Benchmark as of the Benchmark Replacement 
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Date, then “Benchmark Replacement” means the first alternative set forth in the order below that can be determined by the Company (or its Designee) as of the Benchmark Replacement Date: 
 
									
	 	(1)	the sum of: (a) Term SOFR and (b) the Benchmark Replacement Adjustment;

 
									
	 	(2)	the sum of: (a) Compounded SOFR and (b) the Benchmark Replacement Adjustment;

 
									
	 	(3)	the sum of: (a) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (b) the Benchmark Replacement Adjustment;

 
									
	 	(4)	the sum of: (a) the ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; and

 
									
	 	(5)	the sum of: (a) the alternate rate of interest that has been selected by the Company (or its Designee) as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (b) the Benchmark Replacement Adjustment.

 
“Benchmark Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Company (or its Designee) as of the Benchmark Replacement Date: 
 
									
	 	(1)	the spread adjustment (which may be positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body or determined by the Company or its Designee in accordance with the method for calculating or determining such spread adjustment that has been selected or recommended by the Relevant Governmental Body, in each case for the applicable Unadjusted Benchmark Replacement;

 
									
	 	(2)	if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment; and

 
									
	 	(3)	the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Company (or its Designee) giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes at such time.

“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “interest period”, timing and frequency of determining rates and making payments of interest, rounding of amounts or tenor, and other administrative matters) , or any other changes to any other terms or provisions of the bonds, in each case that the Company (or its Designee) decide 
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may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Company (or its Designee) decide that adoption of any portion of such market practice is not administratively feasible or if the Company (or its Designee) determine that no market practice for use of the Benchmark Replacement exists, in such other manner as the Company (or its Designee) determine is reasonably necessary). 
“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark: 
 
									
	 	(1)	in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

 
									
	 	(2)	in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination. 
“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark: 
 
									
	 	(1)	a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;

 
									
	 	(2)	a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; or

 
									
	 	(3)	a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative.

“Compounded SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and conventions for this rate being established by the Company (or its Designee) in accordance with: 
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	 	(1)	the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental Body for determining Compounded SOFR; provided that:

 
									
	 	(2)	if, and to the extent that, the Company (or its Designee) determines that Compounded SOFR cannot be determined in accordance with clause (1) above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Company (or its Designee) giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes at such time.

For the avoidance of doubt, the calculation of Compounded SOFR shall exclude the Benchmark Replacement Adjustment and the Margin specified in this prospectus supplement. 
“Corresponding Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding business day adjustment) as the applicable tenor for the then-current Benchmark. 
“Interpolated Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding Tenor. “Benchmark” as used in clause (1) and (2) of the foregoing definition means the then-current Benchmark for the applicable periods specified in such clauses without giving effect to the applicable index maturity (if any). 
“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time. 
“ISDA Fallback Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor. 
“ISDA Fallback Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment. 
“Reference Time” with respect to any determination of the Benchmark means (1) if the Benchmark is the Three-Month LIBOR Rate, 11:00 a.m., London time, on the LIBOR Interest Determination Date, and (2) if the Benchmark is not the Three-Month LIBOR Rate, the time determined by the Company (or its Designee) in accordance with the Benchmark Replacement Conforming Changes. 
“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto. 
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“SOFR” with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark (or a successor administrator), on the Federal Reserve Bank of New York’s Website. 
“Term SOFR” means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended by the Relevant Governmental Body. 
“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment. 

All percentages resulting from any of the above calculations will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)) and all dollar amounts used in or resulting from such calculations will be rounded to the nearest cent (with one-half cent being rounded upwards). 

The principal of and interest on this Bond are payable at the offices of The Bank of New York Mellon Trust Company, N.A., as Trustee, in Chicago, Illinois, or at such other agency or agencies as may be designated by the Company, in such coin or currency of the United States of America as at the time of payment is legal tender for public and private debts.

This Bond is one of a series, designated as “Series 2020D, Due 2021,” of a duly authorized issue of bonds of the Company, known as its “First and Refunding Mortgage Bonds,” issued and to be issued in one or more series under and all equally and ratably secured by a Trust Indenture dated as of October 1, 1923, and indentures supplemental thereto, including the One Hundred Forty-Fourth Supplemental Indenture, to be dated as of December 2, 2020, which have been duly executed, acknowledged and delivered by the Company to The Bank of New York Mellon Trust Company, N.A. and D. G. Donovan, or one of their predecessors, as Trustees, to which original indenture and indentures supplemental thereto (collectively, the “Trust Indenture”) reference is hereby made for a description of the property, rights and franchises thereby mortgaged and pledged, the nature and extent of the security thereby created, the rights of the holders of this Bond and of the Trustees in respect of such security, and the terms, restrictions and conditions upon which the bonds are issued and secured.

This Bond may not be redeemed prior to its stated maturity.

If default shall be made in the payment of any installment of principal of or interest on this Bond or in the performance or observance of any of the covenants and agreements contained in the Trust Indenture, and such default shall continue as provided in the Trust Indenture, then the principal of this Bond may be declared and become due and payable as provided in the Trust Indenture.

This Bond is transferable only on the books of the Company at any of the places designated above for the payment of the principal of and premium, if any, or interest on this Bond, or at such other agency or agencies as may be designated by the Company, by the registered owner or by an attorney of such owner duly authorized in writing, on surrender hereof properly endorsed, and upon such surrender hereof, and the payment of charges, a new registered bond or bonds of this 
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series, of an equal aggregate principal amount, will be issued to the transferee in lieu hereof, as provided in the Trust Indenture.

The terms of the Trust Indenture may be modified as set forth in the Trust Indenture; provided, however, that, among other things, (1) the obligation of the Company to pay the principal of and premium, if any, and interest on all bonds outstanding under the Trust Indenture, as at the time in effect, shall continue unimpaired, (2) no modification shall give any of said bonds any preference over any other of said bonds, and (3) no modification shall authorize the creation of any lien prior to the lien of the Trust Indenture on any of the trust property.

No recourse shall be had for the payment of the principal of and premium, if any, or interest on this Bond, or any part thereof, or for or on account of the consideration herefor, or for any claim based hereon, or otherwise in respect hereof, or of the Trust Indenture, against any past, present or future stockholder, officer or director of the Company or of any predecessor or successor company, whether for amounts unpaid on stock subscriptions, or by virtue of any statue or constitution, or by the enforcement of any assessment or penalty, or because of any representation or inference arising from the capitalization of the Company or of such predecessor or successor company, or otherwise; all such liability being, by the acceptance hereof and as a part of the consideration for the issue hereof, expressly released.

This Bond shall not be valid or obligatory for any purpose until it shall have been authenticated by the execution of the certificate of authentication hereon of The Bank of New York Mellon Trust Company, N.A., as Trustee, or its successor in trust.

IN WITNESS WHEREOF, Southern California Edison Company has caused this Bond to be executed in its name by its President or one of its Vice Presidents and its corporate seal to be hereto affixed and attested by its Secretary or one of its Assistant Secretaries, as of December __, 2020, such execution and attestation to be by manual or facsimile signatures.

									
			SOUTHERN CALIFORNIA EDISON COMPANY

	ATTEST: ______________________		By: ___________________________
	[Assistant] Secretary		[Vice] President

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(Form of Certificate of Authentication for all Series 2020D Bonds)

Trustee’s Certificate

This is to certify that this Bond is one of the Bonds, of the series designated therein, described and referred to in the Trust Indenture within mentioned.

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., TRUSTEE

                    By _________________________________
                            [Authorized Agent]

(End of Form of Series 2020D Bond)

BE IT FURTHER RESOLVED, that the Series 2020D Bonds need not be issued at the same time and such series may be reopened at any time, without notice to, or the consent of, any then-existing holder or holders of any Series 2020D Bonds, for issuances of additional Series 2020D Bonds in an unlimited principal amount; and any such additional Series 2020D Bonds will have the same interest rate, maturity and other terms as those initially issued, except for payment of interest accruing prior to the original issue date of such additional Series 2020D Bonds and, if applicable, for the first payment date following such original issue date.
BE IT FURTHER RESOLVED, that pursuant to the Trust Indenture, as in effect following due execution and delivery of the One Hundred Forty-Fourth Supplemental Indenture, the President or any Vice President and the Secretary or any Assistant Secretary of this corporation are authorized and directed, for and in the name and on behalf of this corporation and under its corporate seal (which seal may be either impressed, printed, lithographed or engraved thereon), to execute (which execution may be by a facsimile signature) and to deliver the Series 2020D Bonds to The Bank of New York Mellon Trust Company, N.A., as Trustee, for authentication in 
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temporary and/or definitive form, and in such aggregate principal amount up to $900,000,000 as the President or any Vice President and the Secretary or any Assistant Secretary of this corporation shall in their absolute discretion determine.
BE IT FURTHER RESOLVED, that the President or any Vice President and the Secretary or any Assistant Secretary of this corporation are authorized and directed for and in the name and on behalf of this corporation and under its corporate seal, to execute and to deliver to The Bank of New York Mellon Trust Company, N.A., as Trustee, the written order of this corporation for the authentication and delivery of the Series 2020D Bonds pursuant to such sections of Article Two of the Trust Indenture as the officers acting may determine.
BE IT FURTHER RESOLVED, that the Secretary or any Assistant Secretary of this corporation is hereby authorized and directed to deliver to, and file with, The Bank of New York Mellon Trust Company, N.A., as Trustee, a copy of the this certificate of actions taken, certified by the Secretary or any Assistant Secretary of this corporation.
IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date first written above.

                    

/s/ Natalia Woodward  
Natalia Woodward
Treasurer 
Southern California Edison Company
12Exhibit
10.1

 

SEPARATION
AGREEMENT AND GENERAL RELEASE

 

THIS SEPARATION AGREEMENT
AND GENERAL RELEASE (the “Agreement”)
is entered into on this 1st day of December, 2020 by and between Immunome, Inc. (hereinafter referred to as the “Company”)
and Richard F. Fitzgerald (“Employee“).

 

WHEREAS, Employee was
previously employed by the Company and Employee’s employment ended as of November 30, 2020; and

 

WHEREAS, Employee and
the Company desire to end their employment relationship on mutually agreeable terms, as set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the mutual agreements and covenants hereinafter set forth, and intending to be legally bound, the parties agree
as follows:

 

1.            Separation
of Employment.

 

Employee’s employment
with the Company ended on November 30, 2020 (the “Separation
Date”). Accordingly, Employee will not hereafter report to work or accept any assignment or task on behalf of
the Company, other than to perform the obligations as expressly set forth herein. The Company shall pay Employee the regular base
pay to which Employee is entitled through the Separation Date pursuant to the Company’s regular payroll practices.

 

2.           
Separation Benefits and Other Payments to Employee. The Company will pay Employee the following amounts:

 

(a)     Two
(2) months of Employee’s regular base salary which equals the gross amount of Sixty Two Thousand Five Hundred Dollars
($62,500), plus the amounts payable pursuant to Section 3(b) (which together are referred to as the “Separation
Benefits” for purposes of this Agreement);

 

(b)     A payment representing
all accrued but unused vacation time that Employee accrued through the Separation Date pursuant to the Company’s vacation
policies; and

 

(c)     A payment representing
all reimbursable expenses that Employee is due through the Separation Date pursuant to the Company’s expense reimbursement
policies.

 

The foregoing payments
are subject to all applicable tax deductions and withholdings. With the exception of any taxes that the Company withholds from
the amount described in this paragraph, Employee remains responsible and liable for any and all taxes on the amount paid to him
(and/or his estate if applicable).

 

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The foregoing Separation
Benefits will be paid in an aggregate, lump sum payment within sixty (60) calendar days after the Separation Date, subject to the
terms and conditions set forth in this Agreement.

 

3.            Other
Payments and Employee Benefits.

 

(a)     Group
health, vision, and dental insurance, group term life insurance, and accidental death and dismemberment insurance, short and long-term
disability coverage, flexible spending account, 401(k) plan, non-qualified retirement plan participation, and any other fringe
benefits associated with Employee’s employment with the Company shall cease as of the Separation Date, in accordance
with the provisions of such plans.

 

(b)     Employee
may elect to continue Employee’s health insurance coverage, and the continuation of any dependent insurance coverage, under
the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”).
Employee understands and agrees that the Company reserves the right to amend or terminate its health insurance plans at any time.
In the event that Employee timely elects continuation of medical insurance coverage through COBRA in the manner provided as described
in separate correspondence from the Company, then the Company will pay to Employee the monthly COBRA insurance premiums for two
(2) months of the COBRA continuation period (the “Continuation
Period”) in a single lump sum payment; provided that, Employee elects COBRA continuation coverage within forty
five (45) calendar days after the Separation Date and provided further, that the maximum payable pursuant to this Section 3(b) is
$5,500. To the extent Employee elects COBRA continuation coverage later than forty five (45) calendar days after the Separation
Date, Employee will remain eligible to elect and receive COBRA continuation coverage in accordance with the terms and conditions
of COBRA; however, the Company will not reimburse or pay any portion of Employee’s COBRA premium, Employee will be responsible
for the entire cost of such COBRA continuation coverage, and will be so responsible for the remainder of the COBRA continuation
period. Employee’s period of COBRA coverage will not be extended by the time-period, if any, during which the Company subsidizes
the cost of Employee’s continuation of coverage. Employee shall be responsible for timely tendering the monthly COBRA premiums
if Employee desires the COBRA coverage.

 

(c)     Nothing in this
Agreement shall affect any rights that Employee may have under the Company’s qualified or nonqualified retirement plans.
If applicable, Employee may make appropriate election for distribution or payment of benefits, if any, from these plans according
to their respective provisions. Otherwise, distribution or payment of benefits shall be made pursuant to the terms of such plans.

 

(d)     The Company
will not take any action to contest Employee’s receipt of unemployment compensation benefits in connection with the termination
of Employee’s employment; provided, however, that it is mutually understood that: (i) the Company shall respond truthfully
to any inquiries from the state unemployment compensation authorities (i.e., identifying the Separation Benefits), and (ii) unemployment
compensation eligibility decisions are made by the state unemployment compensation authorities.

 

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(e)     Employee acknowledges
that the Separation Benefits represent consideration to Employee for the terms of this Agreement. Other than as expressly provided
for herein, Employee shall receive no compensation or benefit from the Company after the Effective Date of this Agreement. In other
words, Employee is not and shall not be entitled to any payment or other benefits other than the Separation Benefits. Employee
also affirms that he has been paid and/or has received all compensation, wages, overtime, bonuses, incentive payments, equity payments,
commissions, and/or benefits to which he may be entitled and that are payable through the Separation Date. Except as set forth
in this Agreement, Employee agrees that he is not entitled to any additional payment or benefits from the Company including, but
not limited to expense reimbursements, bonuses, commissions, wages, overtime payments, incentive payments, severance payments,
stock options, attorneys’ fees, or any other compensation or benefit.

 

(f)     The Company’s
obligation to pay the Separation Benefits is subject to Employee’s performance of his obligations under this Agreement. In
the event that any of the Separation Benefits have been paid to Employee and it is determined that Employee has made any misrepresentations
in this Agreement and/or otherwise breached any of his obligations as described or referenced in this Agreement or any other agreement
between the parties including, but not limited to, any and all non-competition, non-solicitation and/or confidentiality obligations,
then Employee shall repay all of the Separation Benefits to the Company upon request and the Company is excused from paying any
future Separation Benefits.

 

4.            General
Release and Waiver of Claims by Employee.

 

(a)     Employee,
for Employee and for Employee’s executors, administrators, attorneys, personal representatives, successors and assigns,
and for anybody claiming by or through Employee, for and in consideration of promises made herein, does hereby irrevocably and
KNOWINGLY, VOLUNTARILY and unconditionally waive and release fully and forever any claim, cause of action, loss, expense, or damage,
known or unknown, of any and every nature whatsoever against (i) the Company and its past and present parents, subsidiaries,
divisions, related or affiliated entities, and the Company’s predecessors and successors, and (ii) all past and present
officers, directors, agents, insurers, attorneys, employees, trustees and representatives of any or all of the aforesaid entities
in clause (i) (clauses (i) and (ii) are hereinafter collectively referred to as “Company
Released Entities”), of whatever nature arising from any occurrence or occurrences, from the beginning of time
until the date of Employee’s execution of this Agreement including, without limitation, any claims arising or in any way
resulting from or relating to Employee’s employment with the Company or the termination therefrom. It is understood that
this release does not serve to waive any claims that, pursuant to law, cannot be waived or subject to a release of this kind,
including claims for unemployment or workers’ compensation benefits. By signing this Agreement, Employee is not giving up:
(i) any rights or claims that arise after Employee signs this Agreement; (ii) any rights to vested retirement benefits;
and (iii) any claims for indemnification available under (A) the Company’s general liability insurance policy
that covers specified liabilities of its directors and officers (the “D&O
Insurance Policy”) arising out of claims based on acts or omissions in their capacities as directors or officers
or (B) the Indemnification Agreement entered into between the Company and Employee in connection with Employee’s employment.
Accordingly, Employee retains the right to seek indemnification from the Company under the Company’s by-laws as in effect
during his employment, the D&O Insurance Policy or under the Delaware General Corporation Law with respect to actions arising
in connection with and during the term of his employment.

 

    Page 3 of 8 

     

    

 

Without limitation
of the foregoing, Employee specifically waives any claims against all Company Released Entities arising under Title VII of the
Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Americans with Disabilities
Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Equal Pay Act, the Genetic Information
Nondiscrimination Act, the Fair Labor Standards Act, the Portal to Portal Act, the Sarbanes-Oxley Act, the Pennsylvania Human Relations
Act, the Pennsylvania Minimum Wage Act, the Pennsylvania Wage Payment and Collection Law; all as amended, or any other federal,
state, or local law or ordinance relating in any way to unlawful discharge, discrimination, retaliation, wage payment, or fair
employment practices, or any claim under any statutory or common law theory.

 

Should Employee institute
any claim released by this Section 4(a), or should any other person or entity institute such a claim on his behalf, Employee
will reimburse the Company or applicable other person or entity, as applicable, for any and all legal fees and other expenses
incurred in defending such a claim, in addition to the remedies set forth in Section 3(f) above. The intent of this
Section 4 is to capture any and all claims that Employee has or may have against the Company Released Entities arising from
events occurring prior to the execution of this Agreement and covered by the foregoing release of claims. Employee warrants and
represents that Employee has not, prior to signing this Agreement, filed any claim, charge, or complaint with any arbiter, court
or government agency in any way relating to Employee’s employment with the Company or the termination thereof, nor has Employee
filed any claim, charge, or complaint whatsoever against any of the Company Released Entities identified above. While this release
and the other terms of this Agreement do not prohibit Employee from disclosing the terms of this Agreement to and/or filing a
charge or complaint with the EEOC, NLRB, SEC (defined below) or any other governmental entity related to the Employee’s
employment or separation of employment, Employee understands and acknowledges that the General Release and Waiver of Claims set
forth above will completely bar any recovery or relief obtained on Employee’s behalf, whether monetary or otherwise, with
respect to any of the claims that Employee has released against any and all of the Company Released Entities; provided, however,
that nothing set forth in this Agreement limits Employee’s right to receive a monetary award for information provided
to the U.S. Securities and Exchange Commission (“SEC”)
pursuant to Rule 21F-17 promulgated under the Securities Exchange Act of 1934, as amended.

 

(b)     Employee
acknowledges and agrees that, to his knowledge, he has not been subjected or exposed to unlawful harassment or discrimination,
or been denied any statutory or other legal rights, by the Company during or in connection with his employment with the Company.
Employee further warrants and represents that, in connection with his employment with the Company, he has not engaged in any criminal
or illegal conduct.

 

(c)     Employee
warrants and represents that Employee has not commenced or been party to any action or proceeding in any court or agency against
any of the Company Released Entities with respect to any act, omission, transaction or occurrence up to and including the Effective
Date of this Agreement.

 

    Page 4 of 8 

     

    

 

5.            Other
Agreements. Without limitation of his other obligations under this Agreement, Employee understands and
agrees that Employee also has obligations under the Confidentiality, Assignment of Inventions and Restrictive Covenants
Agreement dated September 18, 2020 between the Company and Employee (“Confidentiality
Agreement”), and that these obligations survive termination of his employment. Employee represents and
warrants that he has complied with all of his obligations under the Confidentiality Agreement and covenants that he will
comply with all of his post-employment obligations as set forth in the Confidentiality Agreement and any other agreements
entered into and/or accepted by Employee during and/or in connection with his employment with the Company, additional copies
of which are available upon request.

 

6.            Confidentiality
and Communications.

 

(a)     Employee agrees
to keep the terms of this Agreement completely confidential, subject to the terms and exceptions of Section 4 above. Employee
may disclose any information concerning the Agreement to Employee’s immediate family members, attorneys, tax accountants,
financial advisors, or as required by law, provided that, if Employee makes a disclosure to any such person and such person makes
a disclosure that, if made by Employee, would breach this Section 6, such disclosure will be considered to be a breach of
this Section 6. The foregoing obligation is not applicable to the extent that any information contained herein is publicly
disclosed by the Company in a required filing under applicable SEC rules and regulations.

 

(b)     Employee
shall not make to any person or entity any statements or communications, oral or written, of a defamatory, critical,
disparaging, false or otherwise negative or derogatory nature pertaining to the Company, its business, products or services,
and/or its vendors, collaborators, contractors, agents, directors, officers, employees or representatives, or any other
Company Released Entities. Employee will refer all reference requests regarding Employee’s employment with the Company
to the Company’s Human Resources department, who will disclose only Employee’s dates of employment with the
Company and last position held. The Company shall direct the Board of Directors and its executive team (i.e., the current
C-suite officers and Senior Vice President) to not make any defamatory, critical, disparaging, or otherwise negative or
derogatory statements or communications about Employee to any person or entity.

 

(c)     Nothing in this
Section 6 or elsewhere in this Agreement is intended to or shall prevent either party from providing truthful testimony in
response to a valid subpoena, court order, regulatory request or other judicial, administrative or legal process or otherwise as
required by law. Employee shall notify the Company in writing about a request for testimony or information related to the Company
in response to a valid subpoena, court order, regulatory request or other judicial, administrative, or legal process or otherwise
as required by law or listing requirements, regarding the anticipated testimony or information to be provided, and such written
notice to the Company shall be provided as soon as practical and at least ten (10) business days prior to providing such testimony
or information (or, if such advance notice is not possible under the circumstances, with as much prior written notice as possible);
provided that, Employee is excused from providing the foregoing notification to the Company if such request for testimony or information
is expressly protected from disclosure to the Company.

 

    Page 5 of 8 

     

    

 

7.            Return
of Property. Prior to receiving any Separation Benefits noted in this Agreement, Employee must immediately return all
Company property including, but not limited to any and all equipment, keys, badges, cell phone, computers or electronic devices,
files (electronic, paper or other media), records, or information relating to the Company including, but not limited to, fulfilling
Employee’s obligation to return Company documents and other information as more fully required in any and all agreements
Employee has with the Company. The content of the Company issued computers, mobile telephones and other electronic devices to
be returned to the Company must be unaltered.

 

8.            Cooperation.
For a period of six (6) months following the Separation Date, Employee will provide reasonable assistance and information
necessary to the transition of Employee’s job responsibilities. This duty to cooperate includes assistance and
cooperation with the Company and/or its successors in locating information or data, providing other known information, assisting
in financial and/or legal matters relating to the Company about which Employee may have information, and transitioning business
relationships. Employee agrees to be reasonably available by phone and/or in person at the Company’s request for such purposes;
provided however, the cooperation will primarily be by telephone or video conference. This duty to cooperate also includes assistance
and cooperation with the Company, its successors and/or other persons engaged by the Company in the investigation, prosecution,
and/or defense of any threatened or asserted litigation or investigations initiated by, or involving the Company, its successors
or any person or entity affiliated with the Company. This agreement to cooperate also includes, but is not limited to, preparing
for and truthfully testifying in connection with any such investigation or proceeding. Employee understands that Employee was
employed as a representative of the Company, and Employee will not assist any person or entity in any matter adverse to the Company
without first providing written notice to the Company’s General Counsel unless such notice is otherwise prohibited by law.

 

9.            No
Representations or Admissions. Neither the Company nor Employee admit any wrongdoing or liability of any sort and have
made no representation as to any wrongdoing or liability of any sort, and this Agreement is executed to bring an amicable conclusion
to the employment relationship.

 

10.            Entire
Agreement. Employee agrees and acknowledges that no representation of fact or opinion has been made to induce
Employee to enter into this Agreement or the General Release and Waiver of Claims contained herein, other than the terms of this
Agreement itself. This Agreement constitutes the entire and exclusive agreement between the parties hereto with respect to the
terms associated with the termination of Employee’s employment and with respect to the rights and obligations of the parties
going forward. This Agreement shall supersede all previous or contemporaneous negotiations, agreements, commitments, statements,
and writings between the parties relating to the subject matter hereof but expressly excluding and preserving all post-employment
obligations with Employee as more fully described in the Confidentiality Agreement and all post-employment obligations set forth
in any other agreements between the Company and Employee.

 

    Page 6 of 8 

     

    

 

11.            Severability.
In the event that any provision of this Agreement shall be held to be void, voidable, or unenforceable, the remaining portions
hereof shall remain in full force and effect. If the release of claims language set forth in Section 4 is found by a court
of competent jurisdiction to be, in whole or in part, unenforceable, the parties agree that the court shall enforce the scope
of the release to the maximum extent permitted by law to cure the defect, and Employee shall comply with such reformed obligations
without entitlement to any additional monies, benefits and/or compensation.

 

12.            Governing
Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of
the Commonwealth of Pennsylvania. Any action, by either party, at law or in equity to enforce this Agreement or seek a remedy
for any breach shall be brought in the Court of Common Pleas of Chester County, Pennsylvania or the United States District
Court for the Eastern District of Pennsylvania, and Employee irrevocably consents to the personal jurisdiction of the above
courts to resolve any such disputes. The prevailing party in any such action will be entitled to recover its legal fees and
other expenses.

 

13.            Successors
and Assigns. This Agreement is binding upon, and shall inure to the benefit of, the parties and their respective
heirs, executors, successors, and assigns; provided, that in no event shall any assignment relieve Employee of his obligations
hereunder.

 

14.            Compliance
with Section 409A. Notwithstanding anything to the contrary in this Agreement, no portion of the benefits or payments
to be made under Section 2 will be payable until Employee has a “separation from service” from the Company within
the meaning of Section 409A of the Internal Revenue Code (the “Code”). In addition, to the extent compliance
with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application
of an additional tax under Section 409A of the Code to payments due to Employee upon or following his “separation from
service”, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement
or arrangement), any such payments that are otherwise due within six (6) months following Employee’s “separation
from service” (taking into account the preceding sentence of this Section) will be deferred without interest and paid to
Employee in a lump sum immediately following that six (6) month period. This Section should not be construed to prevent
the application of Treas. Reg. § 1.409A-1(b)(9)(iii) (or any successor provision) to amounts payable hereunder. For
purposes of the application of Section 409A of the Code, each payment in a series of payments will be deemed a separate payment.

 

15.            Acknowledgment.
This Agreement contains a release of Employee’s claims against the Company and the other Company Released Entities.
Employee has been advised to consult with an attorney as to whether to sign this Agreement and has consulted with, or has had
ample opportunity to consult with, an attorney of his choice. Employee has been given twenty-one (21) calendar days (“Consideration
Period”) to consider this Agreement before signing it and returning it to Sandra Stoneman, Esquire, Chief Legal Officer
and General Counsel, Immunome, Inc., 665 Stockton Drive, Suite 300, Exton, PA 19341. In the event Employee executes
and returns this Agreement prior to the end of the Consideration Period, Employee acknowledges that his decision to do so was
voluntary and that he had the opportunity to consider this Agreement for the entire Consideration Period. The parties agree that
this Agreement will not become effective until seven (7) calendar days after the execution of this Agreement and that
Employee may, within seven (7) calendar days after the execution of this Agreement, revoke this Agreement in its entirety
by written notice to the Company sent to Sandra Stoneman, Esquire at the above address. If written notice is not received by the
end of the seven (7) day period, this Agreement will automatically become effective and enforceable at that time (“Effective
Date”).

 

    Page 7 of 8 

     

    

 

The
parties represent and agree that each has fully read and understands the meaning of this Agreement and is voluntarily entering
into this Agreement with the intention of giving up all claims against the other party as stated herein and for matters that arose
up to and including the date the parties signed below. The parties acknowledge that they are not in entering into this Agreement
relying on any statements by the other party concerning the meaning of any aspect of this Agreement.

 

	 	Immunome, Inc.
	 	 
	 	By:	/s/ Purnanand D Sarma
	 	Name: 	Purnanand Sarma
	 	Title:	Chief Executive Officer
	 	Date:	12-01-2020
	 	 
	 	Richard F. Fitzgerald
	 	 
	 	Signature: 	/s/ Richard F. Fitzgerald
	 	Date:	December 1, 2020

 

    Page 8 of 8

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