Document:

Fourteenth Supplemental Indenture dated as of September 12, 2011

 Exhibit 4.1 
 Execution Version 
  

 
 Fourteenth Supplemental
Indenture 
 Dated as of September 12, 2011 

Supplement to the Amended and Restated Indenture 
 Dated as of April 22, 2005 
  

 
 PACIFIC GAS
AND ELECTRIC COMPANY 
 Issuer 
 and 
 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. 

Trustee 
  

 
  

 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page	 
			
	 ARTICLE I
	  	 DEFINITIONS
	  	 	2	  
			
	 ARTICLE II
	  	 ESTABLISHMENT OF THE 3.25% SENIOR NOTES
	  	 	3	  
				
		 	 SECTION 201
	  	 Establishment and Designation of the 3.25% Senior Notes
	  	 	3	  
				
		 	 SECTION 202
	  	 Form of the 3.25% Senior Notes
	  	 	4	  
				
		 	 SECTION 203
	  	 Principal Amount of the 3.25% Senior Notes
	  	 	4	  
				
		 	 SECTION 204
	  	 Interest Rates; Stated Maturity of the 3.25% Senior Notes
	  	 	4	  
				
		 	 SECTION 205
	  	 No Sinking Fund
	  	 	4	  
				
		 	 SECTION 206
	  	 Paying Agent and Bond Registrar
	  	 	4	  
				
		 	 SECTION 207
	  	 Global Securities; Appointment of Depositary for Global Securities
	  	 	4	  
				
		 	 SECTION 208
	  	 Other Terms of the 3.25% Senior Notes
	  	 	5	  
			
	 ARTICLE III
	  	 OPTIONAL REDEMPTION BY COMPANY
	  	 	5	  
				
		 	 SECTION 301
	  	 Optional Redemption
	  	 	5	  
				
		 	 SECTION 302
	  	 Calculation of Redemption Price
	  	 	5	  
				
		 	 SECTION 303
	  	 Notice of Redemption
	  	 	6	  
			
	 ARTICLE IV
	  	 MISCELLANEOUS
	  	 	6	  
				
		 	 SECTION 401
	  	 Application of Fourteenth Supplemental Indenture
	  	 	6	  
				
		 	 SECTION 402
	  	 Effective Date of Fourteenth Supplemental Indenture
	  	 	6	  
				
		 	 SECTION 403
	  	 Counterparts
	  	 	6	  
			
	 EXHIBIT A
	  		  			

  
 i 

 FOURTEENTH SUPPLEMENTAL INDENTURE, dated as of September 12, 2011 (this
“Fourteenth Supplemental Indenture”), by and between PACIFIC GAS AND ELECTRIC COMPANY, a corporation duly organized and existing under the laws of the State of California (the “Company” or the “Issuer”), and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association organized and existing under the laws of the United States of America (formerly known as The Bank of New York Trust Company, N.A.), as Trustee under the Base
Indenture (as hereinafter defined) (the “Trustee”). 
 RECITALS OF THE COMPANY 

A. The Company and the Trustee are parties to that certain Amended and Restated Indenture, dated as of April 22, 2005 (the
“Base Indenture”), as supplemented by the First Supplemental Indenture, dated as of March 13, 2007 (the “First Supplemental Indenture”), the Second Supplemental Indenture, dated as of December 4, 2007 (the “Second
Supplemental Indenture”), the Third Supplemental Indenture, dated as of March 3, 2008 (the “Third Supplemental Indenture”), the Fourth Supplemental Indenture, dated as of October 21, 2008 (the “Fourth Supplemental
Indenture”), the Fifth Supplemental Indenture, dated as of November 18, 2008 (the “Fifth Supplemental Indenture”), the Sixth Supplemental Indenture, dated as of March 6, 2009 (the “Sixth Supplemental Indenture”),
the Seventh Supplemental Indenture, dated as of June 11, 2009 (the “Seventh Supplemental Indenture”), the Eighth Supplemental Indenture, dated as of November 18, 2009 (the “Eighth Supplemental Indenture”), the Ninth
Supplemental Indenture, dated as of April 1, 2010 (the “Ninth Supplemental Indenture”), the Tenth Supplemental Indenture, dated as of September 15, 2010 (the “Tenth Supplemental Indenture”), the Eleventh Supplemental
Indenture, dated as of October 12, 2010 (the “Eleventh Supplemental Indenture”), the Twelfth Supplement Indenture, dated as of November 18, 2010 (the “Twelfth Supplemental Indenture”), the Thirteenth Supplemental
Indenture, dated as of May 13, 2011 (the “Thirteenth Supplemental Indenture”) and this Fourteenth Supplemental Indenture (this “Fourteenth Supplemental Indenture,” and together with the Base Indenture, the First Supplemental
Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture, the Sixth Supplemental Indenture, the Seventh Supplemental Indenture, the Eighth Supplemental
Indenture, the Ninth Supplemental Indenture, the Tenth Supplemental Indenture, the Eleventh Supplemental Indenture, the Twelfth Supplemental Indenture and the Thirteenth Supplemental Indenture, the “Indenture”), which supplements, amends
and restates that certain Indenture of Mortgage, dated as of March 11, 2004, as supplemented by the First Supplemental Indenture thereto, dated as of March 23, 2004 and the Second Supplemental Indenture thereto, dated as of April 12,
2004, providing for the issuance by the Company of an unlimited number of series of Bonds (as defined in the Base Indenture) from time to time. 
 B. Under the Base Indenture, the Company is authorized to establish one or more series of Bonds at any time in accordance with and subject to the provisions of the Base Indenture, and the terms of such
series of Bonds may be described by a supplemental indenture executed by the Company and the Trustee. 
 C. The execution and
delivery of this Fourteenth Supplemental Indenture has been authorized by a Board Resolution (as defined in the Base Indenture). 

 D. Concurrent with the execution hereof, the Company has caused its counsel to deliver to
the Trustee an Opinion of Counsel (as defined in the Base Indenture) pursuant to Section 13.03 of the Base Indenture, together with the documents required under Article V of the Base Indenture. 

E. The Company has done all things necessary to make this Fourteenth Supplemental Indenture a valid agreement of the Company, in
accordance with its terms. 
 NOW, THEREFORE, the Company and the Trustee agree, for the benefit of each other and for the equal
and proportionate benefit of Holders of the 3.25% Senior Notes (as defined below) with respect to all provisions herein applicable to such series of notes, as follows: 
 ARTICLE I 
 DEFINITIONS 

Unless the context otherwise requires, capitalized terms used but not defined herein have the meaning set forth in the Indenture. The
following additional terms are hereby established for purposes of this Fourteenth Supplemental Indenture and shall have the meanings set forth in this Fourteenth Supplemental Indenture only for purposes of this Fourteenth Supplemental Indenture:

 “3.25% Senior Notes” has the meaning set forth in Section 201 hereto. 

“Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a
maturity comparable to the remaining term of the 3.25% Senior Notes that would be used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the 3.25% Senior Notes. 
 “Comparable Treasury Price” means, with respect to any Redemption
Date, (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of the Reference Treasury Dealer Quotations or (2) if the Company obtains fewer than four Reference Treasury
Dealer Quotations, the average of all Reference Treasury Dealer Quotations so received. 
 “Primary Treasury
Dealer” means a primary U.S. Government Securities dealer in the United States. 
 “Quotation Agent”
means the Reference Treasury Dealer appointed by the Company. 
 “Redemption Price” means the price at which
the 3.25% Senior Notes may be redeemed pursuant to Section 301(a) or Section 301(b) hereto. 

  
 2 

 “Reference Treasury Dealer” means (1) each of Citigroup Global Markets
Inc. and Morgan Stanley & Co. LLC and their respective successors, unless any of them ceases to be a Primary Treasury Dealer, in which case the Company shall substitute another Primary Treasury Dealer; and (2) any other Primary
Treasury Dealer selected by the Company. 
 “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the
Company by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. For purposes of this definition only, “Business Day” means any day that is
not a day on which banking institutions in New York City are authorized or required by law or regulation to close. 

“Remaining Scheduled Payments” means, with respect to each of the 3.25% Senior Notes that the Company is redeeming
pursuant to Section 301 hereto, the remaining scheduled payments of principal and interest that would be due after the applicable Redemption Date if such 3.25% Senior Notes were not redeemed. However, if the Redemption Date is not a scheduled
Interest Payment Date with respect to such 3.25% Senior Notes, the amount of the next succeeding scheduled interest payment on such 3.25% Senior Notes will be reduced by the amount of interest accrued on such 3.25% Senior Notes to the Redemption
Date. 
 “U.S. Government Securities” means securities which are (a) direct obligations of the United
States of America for the payment on which its full faith and credit is pledged or (b) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation of the United States of America, and which in the case of (a) and (b) are not callable or redeemable at the option of the issuer thereof, and shall also include a depository
receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Security or a specific payment of interest on or principal of any such U.S. Government Security held by such custodian for the account of the holder of a
depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S.
Government Security evidenced by such depository receipt. 
  

 
 The words
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Fourteenth Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision. 

ARTICLE II 

ESTABLISHMENT OF THE 3.25% SENIOR NOTES 
 SECTION 201 Establishment and Designation of the 3.25% Senior Notes. 

Pursuant to the terms hereof and Section 3.01 of the Indenture, the Company hereby establishes a thirty-third series of Bonds
designated as the “3.25% Senior Notes due 

  
 3 

 
September 15, 2021” (the “3.25% Senior Notes”). The 3.25% Senior Notes may be reopened, from time to time, for issuances of additional Bonds of such series, and any additional
Bonds issued and comprising 3.25% Senior Notes shall have identical terms as the 3.25% Senior Notes, except that the issue price, issue date and, in some cases, the first Interest Payment Date may differ. 

SECTION 202 Form of the 3.25% Senior Notes. 

The 3.25% Senior Notes shall be issued in the form of one or more Global Bonds in substantially the form set forth in Exhibit A
hereto. 
 SECTION 203 Principal Amount of the 3.25% Senior Notes. 

The 3.25% Senior Notes shall be issued in an initial aggregate principal amount of $250,000,000. 

SECTION 204 Interest Rates; Stated Maturity of the 3.25% Senior Notes. 

The 3.25% Senior Notes shall bear interest at the rate of 3.25% per annum and shall have a Stated Maturity of September 15,
2021. 
 SECTION 205 No Sinking Fund. 
 No sinking fund is provided for the 3.25% Senior Notes. 
 SECTION 206 Paying
Agent and Bond Registrar. 
 The Trustee is hereby appointed as initial Paying Agent and initial Bond Registrar for the
3.25% Senior Notes. The Place of Payment of the 3.25% Senior Notes shall be the Corporate Trust Office of the Trustee. 

SECTION 207 Global Securities; Appointment of Depositary for Global Securities. 

The 3.25% Senior Notes shall be issued in the form of one or more permanent Global Bonds as provided in Section 3.13 of the
Indenture and deposited with, or on behalf of, the Depositary, or with the Trustee, as custodian for the Depositary, duly executed by the Company and authenticated by the Trustee. 

The Company hereby initially appoints The Depository Trust Company (“DTC”) to act as the Depositary with respect to all 3.25%
Senior Notes, and the 3.25% Senior Notes shall initially be registered in the name of Cede & Co., as the nominee of DTC. 
 The Company and DTC have executed a Blanket Letter of Representations, and the Trustee is hereby authorized in connection with any successor nominee for DTC or any successor Depositary, to enter into
appropriate or comparable arrangements, if necessary, and shall have the same rights with respect to its actions thereunder as it has with respect to its actions under the Indenture. 

  
 4 

 None of the Company, the Trustee, any Paying Agent or any Bond Registrar will have any
responsibility or liability for any aspect of Depositary records relating to, or payments made on account of, beneficial ownership interests in a Global Bond or for maintaining, supervising or reviewing any Depositary records relating to such
beneficial ownership interests, or for transfers of beneficial interests in the Bonds or any transactions between the Depositary and beneficial owners. 
 SECTION 208 Other Terms of the 3.25% Senior Notes. 
 The other terms
of the 3.25% Senior Notes shall be as expressly set forth herein and in Exhibit A. 
 ARTICLE III 

OPTIONAL REDEMPTION BY COMPANY 
 SECTION 301 Optional Redemption. 
 Optional Redemption of 3.25%
Senior Notes. 
 (a) Subject to the terms and conditions of the Indenture, at any time prior to June 15, 2021 the 3.25%
Senior Notes are redeemable at the option of the Company in whole or in part at a redemption price equal to the greater of: 
 (i) 100% of the principal amount of the 3.25% Senior Notes to be redeemed; or 
 (ii) as determined by the Quotation Agent, the sum of the present values of the Remaining Scheduled Payments of principal and interest on the 3.25% Senior Notes to be redeemed (not including any portion
of payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis at the Adjusted Treasury Rate, plus 20 basis points; 
 plus, in either of the above cases, accrued and unpaid interest thereon to but not including the Redemption Date. 
 (b) Subject to the terms and conditions of the Indenture, at any time on or after June 15, 2021, the 3.25% Senior Notes are redeemable at the option of the Company in whole or in part at 100% of the
principal amount of the 3.25% Senior Notes to be redeemed, plus accrued and unpaid interest thereon to but not including the Redemption Date. 
 (c) The Redemption Price shall be calculated assuming a 360-day year consisting of twelve 30-day months. 
 SECTION 302 Calculation of Redemption Price. The Company shall calculate the Redemption Price for any redemption of Senior Notes pursuant to Section 301 and notify the Trustee of such
Redemption Price before it sends the amount of the Redemption Price to the Trustee or any Paying Agent. 

  
 5 

 SECTION 303 Notice of Redemption. Notice of any redemption pursuant to
Section 301 shall be given in the manner and at the time set forth in Section 6.04 of the Indenture; provided, however, that such notice need not state the dollar amount of the Redemption Price if such dollar amount has not been determined
as of the date such notice is being given to the Holders of the 3.25% Senior Notes being redeemed. 
 ARTICLE IV 

MISCELLANEOUS 
 SECTION 401 Application of Fourteenth Supplemental Indenture. 

Except as provided herein, each and every term and condition contained in this Fourteenth Supplemental Indenture that modifies, amends or
supplements the terms and conditions of the Indenture shall apply only to the 3.25% Senior Notes established hereby and not to any other series of Bonds established under the Indenture. Except as specifically amended and supplemented by, or to the
extent inconsistent with, this Fourteenth Supplemental Indenture, the Indenture shall remain in full force and effect and is hereby ratified and confirmed. 
 SECTION 402 Effective Date of Fourteenth Supplemental Indenture. 

This Fourteenth Supplemental Indenture shall be effective upon the execution and delivery hereof by each of the parties hereto.

 SECTION 403 Counterparts. 
 This Fourteenth Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but
one and the same instrument. 

  
 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Fourteenth Supplemental Indenture to
be duly executed by their respective officers hereunto duly authorized, all as of the day and year first above written. 
  

			
	PACIFIC GAS AND ELECTRIC COMPANY,
		 	as Issuer
		
	By:	 	 /s/ Nicholas M. Bijur

	Name:	 	Nicholas M. Bijur
	Title:	 	Treasurer
	
	 THE BANK OF NEW YORK MELLON TRUST
   COMPANY, N.A.,

		 	as Trustee
		
	By:	 	 /s/ Teresa Petta

	Name:	 	Teresa Petta
	Title:	 	Vice President

 Signature page to Fourteenth Supplemental Indenture 

 EXHIBIT A 
 FORM OF 3.25% SENIOR NOTES DUE SEPTEMBER 15, 2021 
 THIS SENIOR NOTE IS A
BOND AND A GLOBAL BOND WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SENIOR NOTES IN DEFINITIVE FORM, THIS
SENIOR NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
 UNLESS THIS SENIOR NOTE CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SENIOR NOTE CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 THE FOLLOWING SUMMARY OF TERMS IS SUBJECT TO THE INFORMATION SET FORTH ON THE REVERSE HEREOF: 
  

					
	 PRINCIPAL AMOUNT :

$250,000,000
	 	 ORIGINAL ISSUE DATE:

September 12, 2011
	 	INTEREST RATE: 3.25% per annum
			
	 MATURITY DATE:

September 15, 2021
	 	 INTEREST PAYMENT DATES:
 March
15 and September 15, commencing March 15, 2012
	 	 THIS SENIOR NOTE IS A:
 x Global Book-Entry Bond
  ̈ Certificated
Bond

			
	REGISTERED OWNER: Cede & Co., as nominee of The Depository Trust Company	 		 	

  
 A-1

 PACIFIC GAS AND ELECTRIC COMPANY 

3.25% SENIOR NOTES DUE SEPTEMBER 15, 2021 
 (Fixed Rate) 
  

			
	No. R-1	  	Principal Amount: $250,000,000
	CUSIP No: 694308 GW1	  	

 PACIFIC GAS AND ELECTRIC COMPANY, a corporation duly organized and existing under the laws of the State
of California (herein called the “Company,” which term includes any successor Person pursuant to the applicable provisions of the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., as
nominee for The Depository Trust Company, or registered assigns, the Principal Amount stated above on the Maturity Date stated above, and to pay interest thereon from and including the Original Issue Date stated above or, in the case of a 3.25%
Senior Note due September 15, 2021 issued upon the registration of transfer or exchange, from and including the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on the Interest
Payment Dates set forth above and on the Maturity Date stated above, commencing March 15, 2012 at the rate of 3.25% per annum until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this 3.25% Senior Note due September 15, 2021 (this “Senior Note,” and together with all other 3.25% Senior Notes
due September 15, 2021, the “Senior Notes”) (or one or more Predecessor Bonds) is registered at the close of business on the Regular Record Date for such interest, which shall be the 15th day preceding such Interest Payment Date;
provided, however, that interest payable at the Maturity Date or on a Redemption Date will be paid to the Person to whom principal is payable. Any such interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Senior Note (or one or more Predecessor Bonds) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Senior Notes not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements
of the Indenture and any securities exchange, if any, on which the Senior Notes may be listed, and upon such notice as may be required by any such exchange, all as more fully provided in said Indenture. 

Payments of interest on this Senior Note will include interest accrued to but excluding the respective Interest Payment Dates. Interest
payments for this Senior Note shall be computed and paid on the basis of the 360-day year of twelve 30-day months and will accrue from September 12, 2011 or from the most recent Interest Payment Date to which interest has been paid or duly
provided for. In the event that any date on which interest is payable on this Senior Note (other than the Maturity Date) is not a Business Day then payment of the interest payable on such date will be made on the next succeeding day that is a
Business Day (and without any interest or payment in respect of any such delay) with the same force and effect as if made on the 

  
 A-2

 
date the payment was originally payable. If the Maturity Date falls on a day that is not a Business Day, the payment of principal, premium, if any, and interest may be made on the next succeeding
Business Day, and no interest on such payment shall accrue for the period from and after maturity. 
 Payment of principal of,
premium, if any, and interest on Senior Notes shall be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. Payments of principal of, premium, if any, and
interest on the Senior Notes represented by a Global Bond shall be made by wire transfer of immediately available funds to the Holder of such Global Bond, provided that, in the case of payments of principal and premium, if any, such Global Bond is
first surrendered to the Paying Agent. If any of the Senior Notes are no longer represented by a Global Bond, (i) payments of principal, premium, if any, and interest due on the Maturity Date or earlier redemption of such Senior Notes shall be
made at the office of the Paying Agent upon surrender of such Senior Notes to the Paying Agent, and (ii) payments of interest shall be made, at the option of the Company, subject to such surrender where applicable, (A) by check mailed to
the address of the Person entitled thereto as such address shall appear in the Bond Register or (B) by wire transfer to registered Holders of at least $10,000,000 in principal amount of Senior Notes at such place and to such account at a
banking institution in the United States as such Holders may designate in writing to the Trustee at least sixteen (16) days prior to the date for payment. 
 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SENIOR NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual
signature, this Senior Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-3

 IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed. 
 Dated: September 12, 2011 

 

			
	PACIFIC GAS AND ELECTRIC COMPANY
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-4

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This Senior Note is one of the Bonds of the series designated as Bonds of the Thirty-Third Series referred to in the within-mentioned
Indenture. 
 Dated: September 12, 2011 

 

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

		
	By:	 	  

		 	Authorized Signatory

  
 A-5

 Reverse of Senior Note 

This 3.25% Senior Note due September 15, 2021 is one of a duly authorized issue of Bonds of the Company, issued and issuable in one
or more series under an Amended and Restated Indenture, dated as of April 22, 2005 (the “Base Indenture”), as heretofore supplemented and as further supplemented by a Fourteenth Supplemental Indenture, dated as of September 12,
2011 (as so supplemented, and together with all additional indentures supplemental thereto, and any constituent instruments establishing the terms of particular Bonds, being herein called the “Indenture”), between the Company and The Bank
of New York Mellon Trust Company, N.A. (formerly The Bank of New York Trust Company, N.A.), as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the
Indenture for a description of the respective rights, limitations of rights, duties and immunities of the Company, the Trustee and the Holders of Bonds thereunder and of the terms and conditions upon which Bonds are, and are to be, authenticated and
delivered. This Senior Note is a Bond within the meaning of the Indenture and is one of the Bonds of the thirty-third series designated as the 3.25% Senior Note due September 15, 2021 established by the Company under the Indenture. The
acceptance of this Senior Note shall be deemed to constitute the consent and agreement by the Holder hereof to all of the terms and provisions of the Indenture. 
 Subject to the terms and conditions of the Indenture, the Senior Notes are redeemable at the option of the Company (“Optional Redemption”), in whole or in part, (a) at any time prior to
June 15, 2021 at a Redemption Price equal to the greater of: 
 (i) 100% of the principal amount of the
Senior Notes to be redeemed; or 
 (ii) as determined by the Quotation Agent, the sum of the present values of
the Remaining Scheduled Payments of principal and interest on the Senior Notes to be redeemed (not including any portion of payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis at the
Adjusted Treasury Rate, plus 20 basis points, 
 plus, in either of the above cases, accrued and unpaid interest thereon to but not including
the Redemption Date; and (b) at any time on or after June 15, 2021, at 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest thereon to but not including the Redemption Date. 

Interest installments whose Stated Maturity is on or prior to such Redemption Date will be payable to Holders of such Senior Notes, or
one or more Predecessor Bonds, of record at the close of business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture. 
 In the case of an Optional Redemption, notice of redemption will be in writing and mailed first-class postage-prepaid not less than 30 days nor more than 60 days prior to the Redemption Date to each
Holder of Senior Notes to be redeemed at the Holder’s registered address; provided, however, that such notice need not state the dollar amount of the Redemption Price if such dollar amount has not been determined as of the date such notice is
being given to 

  
 A-6

 
the Holders of the Senior Notes being redeemed. If money sufficient to pay the Redemption Price of all Senior Notes (or portions thereof) to be redeemed on the Redemption Date is deposited with
the Paying Agent or the Trustee on or prior to the Redemption Date, from and after such Redemption Date such Senior Notes or portions thereof shall cease to bear interest. Senior Notes in denominations larger than $1,000 in principal amount may be
redeemed in part but only in integral multiples of $1,000. 
 In the event of redemption of this Senior Note in part only, a new
Senior Note or Senior Notes of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof. 
 As provided in the Indenture and subject to certain limitations therein set forth, this Senior Note or any portion of the principal amount hereof will be deemed to have been paid for all purposes of the
Indenture and to be no longer Outstanding thereunder, and the Company’s entire indebtedness in respect thereof will be satisfied and discharged, if there has been irrevocably deposited with the Trustee or any Paying Agent (other than the
Company), in trust, money in an amount which will be sufficient and/or Eligible Obligations, the principal of and interest on which when due, without regard to any reinvestment thereof, will provide moneys which, together with money, if any,
deposited with or held by the Trustee or such Paying Agent, will be sufficient to pay when due the principal of and premium, if any, and interest on this Senior Note when due. 
 If an Event of Default shall occur and be continuing, the Trustee or the Holders of not less than 33% in aggregate principal amount of the Outstanding Bonds, considered as one class, may declare the
principal amount of all Bonds then Outstanding to be due and payable immediately by notice in writing to the Company (and to the Trustee if given by Holders); provided, however, that with respect to certain Events of Default relating to bankruptcy,
insolvency and similar events, the principal amount of all Bonds then Outstanding shall be due and payable immediately without further action by the Trustee or the Holders. 
 The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee to enter into one or more supplemental indentures for the purpose of adding any provisions to, or changing
in any manner or eliminating any of the provisions of, the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Bonds at the time Outstanding, considered as one class; provided, however, that if
there shall be Bonds of more than one series Outstanding under the Indenture and if a proposed supplemental indenture shall directly affect the rights of the Holders of Bonds of one or more, but less than all, of such series, then the consent only
of the Holders of a majority in aggregate principal amount of the Outstanding Bonds of all series so directly affected, considered as one class, shall be required; and provided, further, that if the Bonds of any series shall have been issued in more
than one Tranche and if a proposed supplemental indenture shall directly affect the rights of the Holders of Bonds of one or more, but less than all, of such Tranches, then the consent only of the Holders of a majority in aggregate principal amount
of the Outstanding Bonds of all Tranches so directly affected, considered as one class, shall be required; and provided, further, that the Indenture permits the Company and the Trustee to enter into one or more supplemental indentures for certain
purposes without the consent of any Holders of Bonds. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of Bonds, 

  
 A-7

 
on behalf of the Holders of all such Bonds, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Senior Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Senior Note and of any Senior Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Senior Note. 
 As provided in and subject to the provisions of the Indenture, the Holder of this
Senior Note shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default, the Holders of at least 33% in aggregate principal amount of the Bonds at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as
Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of at least a majority in aggregate principal amount of Bonds at the time Outstanding a direction inconsistent with such written request,
and shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Senior Note for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 
 No
reference herein to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Senior
Note at the times, place and rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject
to certain limitations therein set forth, the transfer of this Senior Note is registrable in the Bond Register, upon surrender of this Senior Note for registration of transfer at the office or agency of the Company in any place where the principal
of and any premium and interest on this Senior Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company, the Trustee or the Bond Registrar, as the case may be, duly executed by the
Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Senior Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee
or transferees. 
 The Senior Notes are issuable only in registered form without coupons in denominations of $1,000 and any
integral multiple thereof. As provided in the Indenture and subject to certain limitations therein set forth, Senior Notes are exchangeable for a like aggregate principal amount of Senior Notes and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 The Company shall not be required to execute or to provide for the registration of the transfer of or the exchange of (A) any Senior Note of this series during a period of 15 days

  
 A-8

 
immediately preceding the date notice is to be given identifying the serial numbers of the Senior Notes called for redemption, or (B) any Senior Note selected for redemption in whole or in
part, except the unredeemed portion of any Senior Note being redeemed in part. 
 Prior to due presentment of this Senior Note
for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Senior Note is registered as the owner hereof for all purposes, whether or not this Senior Note is overdue,
and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 This Senior Note shall
be governed by, and construed and enforced in accordance with, the laws of the State of California without regard to the principles of conflicts of laws thereunder, except to the extent that the Trust Indenture Act shall be applicable. 

As provided in the Indenture, no recourse shall be had for the payment of the principal of, premium, if any, or interest with respect to
this Senior Note, or any part thereof, or for any claim based hereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, against any incorporator, shareholder,
officer or director, as such, past, present or future, of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional
provision, statute or rule of law or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture and all the Bonds are solely corporate obligations and that any such personal liability is
hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of this Senior Note. 
 All terms used in this Senior Note which are not defined herein shall have the meanings assigned to them in the Indenture. 

  
 A-9

 ASSIGNMENT FORM 
 To assign this Senior Note, fill in the form below: (I) or (we) assign and transfer this Senior Note to 
  

 
 (Insert assignee’s soc. sec. or tax I.D.
no.) 
  
  

 
  
  

 
  

 
 (Print or type assignee’s name, address and
zip code) 
 and irrevocably
appoint                                        
                                         
                                         
                                         
      
 to transfer this Senior Note on the books of the Company. The agent may substitute another to act for him.

  
  
 Date:                      

 

	
	Your
signature:                                       
                   
	(Sign exactly as your name appears on the face of this Senior Note)
	
	Tax Identification
No.:                                        
      
	
	SIGNATURE GUARANTEE:
	
	_____________________________                         
                           
	
	Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Bond Registrar, which requirements include membership or participation
in the Securities Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Bond Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

  
 A-10Employee Stock Purchase Plan (as amended)

 Exhibit 10.1 
 THE FRESH MARKET, INC. 
 EMPLOYEE STOCK PURCHASE PLAN 

(as amended) 
 1. Purpose.

 The purpose of this Employee Stock Purchase Plan is to provide employees of The Fresh Market, Inc. and its subsidiaries with
an opportunity to purchase shares of The Fresh Market, Inc. common stock through accumulated payroll deductions. The Plan is intended to qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of
1986, as amended. 
 2. Definitions. 
 (a) “Board” shall mean the Board of Directors of the Company. 

(b) “Business Day” shall mean a day on which national stock exchanges are open for trading. 

(c) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(d) “Committee” shall mean the compensation committee of the Board, or such other committee of the Board as may be
designated by the Board to administer the Plan. 
 (e) “Company” shall mean The Fresh Market, Inc., a
corporation organized under the laws of the State of Delaware, together with any successor thereto. 
 (f)
“Compensation” shall mean an Employee’s regular wages. 
 (g) “Designated Subsidiary”
shall mean any Subsidiary of the Company designated by the Board from time to time in its sole discretion as eligible to participate in the Plan. 
 (h) “Employee” shall mean any individual who is an employee of the Company or a Designated Subsidiary for purposes of Section 423 of the Code. For purposes of the Plan, the
employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company or a Designated Subsidiary, except that where the period of leave exceeds 90 days and the
individual’s right to reemployment is not guaranteed by either statute or contract, the employment relationship shall be deemed to have terminated on the 91st day of such leave. 

(i) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(j) “Fair Market Value” on any date shall mean, except as otherwise provided in the applicable offering, with respect to
Shares as of any date, (i) the closing per-share sales price of the Shares (A) as reported by the NASDAQ Global Select Market for such date or (B) if the Shares are listed on any other national stock exchange, as reported on

 
the stock exchange composite tape for securities traded on such stock exchange for such date or, with respect to each of clauses (A) and (B), if there were no sales on such date, on the
closest preceding date on which there were sales of Shares or (ii) in the event there shall be no public market for the Shares on such date, the fair market value of the Shares as determined in good faith by the Committee. 

(k) “Grant Date” shall mean the first day of each Offering Period. For purposes of Section 423 of the Code, the
Company shall be deemed to have granted to each Participant an option to purchase Shares on each Grant Date. 
 (l)
“Offering Period” shall mean the period set by the Committee, from time to time, during which an option granted hereunder is outstanding, but in no event shall the term of any Offering Period exceed the limits described in
Section 423(b)(7) of the Code. The duration of Offering Periods need not be identical. 
 (m) “Parent”
shall mean a corporation, domestic or foreign, that owns not less than 50% of the voting shares of the Company or of another Parent, whether or not such corporation now exists or is hereafter organized or acquires the Company or a Parent.

 (n) “Participant” shall mean an eligible Employee who has elected to participate in the Plan in accordance
with Section 5. 
 (o) “Plan” shall mean this Employee Stock Purchase Plan. 

(p) “Purchase Date” shall mean the last Business Day of each Offering Period. 

(q) “Purchase Price” shall mean an amount set by the Committee, which may be no less than the lower of 85% of the Fair
Market Value of a Share on the applicable Grant Date or the applicable Purchase Date. 
 (r) “Reserves” shall
mean the number of Shares covered by each option under the Plan that has not yet been exercised and the number of Shares that has been authorized for issuance under the Plan, but not yet placed under option. 

(s) “Shares” shall mean the authorized shares of common stock of the Company, $0.01 par value, as may be adjusted by the
Board from time to time. Any adjustment to the par value of a Share shall be incorporated herein without any need to otherwise amend the Plan. For the avoidance of doubt, “Shares” shall be interpreted to include both full and fractional
shares, as applicable. 
 (t) “Subsidiary” shall mean a corporation, domestic or foreign, of which not less
than 50% of the voting shares are held by the Company or another Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 

(u) “Treasury Regulations” shall mean all proposed, temporary and final regulations promulgated under the Code, as such
regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 

  
 ESPP as amended 

2 

 3. Eligibility. 
 (a) Any Employee that is employed by the Company or a Designated Subsidiary on a given Grant Date shall be eligible to participate in the Plan. 

(b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan: 

(1) to the extent that, immediately after the grant of such option hereunder, such Employee (including by attribution under
Section 424(d) of the Code) would own capital stock of the Company (or a Parent or Subsidiary) or hold outstanding options to purchase stock of the Company (or a Parent or Subsidiary) constituting in the aggregate five percent or more of the
total combined voting power or value of all classes of the capital stock of the Company (or a Parent or Subsidiary), or 
 (2)
to the extent that, immediately after the grant of such option hereunder, such Employee’s option rights to purchase stock under this Plan and any other employee stock purchase plans of the Company and its Parent and Subsidiary corporations
exceeds $25,000 worth of stock (based on the Fair Market Value of the Shares at the applicable Grant Date) in the aggregate for each calendar year in which such option right is outstanding at any time. 

4. Offering Periods. 

The Plan shall be implemented by consecutive or overlapping Offering Periods, with a new Offering Period commencing on such date as the
Committee shall determine, and continuing thereafter until the applicable Purchase Date or until the Offering Period is terminated in accordance with Section 20. 
 5. Participation. 
 (a) An eligible Employee may become a Participant in the
Plan by completing a subscription agreement authorizing payroll deductions in the form provided by the Company and returning it to the Committee within such time period prior to the date for which it is to be effective as shall be established by the
Committee. If the subscription agreement is not timely executed and returned, the eligible Employee shall not be permitted to participate in the Plan until the first Grant Date subsequent thereto as of which the Committee has received a subscription
agreement executed within the time, and in the form, prescribed by the Committee. 
 (b) Payroll deductions for a Participant
shall commence on the first payroll date occurring on or after the applicable Grant Date and shall end on the last payroll date occurring on or before the end of the Offering Period to which such authorization is applicable, unless sooner terminated
by the Participant as provided in Section 10. 

  
 ESPP as amended 

3 

 6. Payroll Deductions. 
 (a) At the time a Participant files his or her subscription agreement, the Participant shall elect to have payroll deductions made on each payday during the Offering Period in the manner prescribed by the
Committee. For example, the Committee may provide that Participants shall elect to have such payroll deductions equal (i) a whole percentage (e.g., 1%, 2%, etc.) of the Compensation that the Participant receives on each payday during
such Offering Period or (ii) an absolute dollar amount (e.g., $50, $125, etc.). 
 (b) The maximum number of Shares
that may be purchased by a Participant during an Offering Period shall equal $25,000 divided by the Fair Market Value of a Share as of the Grant Date. 
 (c) All payroll deductions made for a Participant shall be credited to his or her account under the Plan. A Participant may not make any additional payments into such account. A Participant’s account
shall be only a bookkeeping account maintained by the Company, and neither the Company nor any Parent or Subsidiary shall be obligated to segregate or hold in trust or escrow any funds in a Participant’s account. Unless specifically provided
herein, no amount of accumulated payroll deductions shall be carried over with respect to any Participant from the end of one Offering Period to the beginning of another. 
 (d) The Committee may permit a Participant to modify his or her payroll deduction election on such occasions and with such frequency as the Committee determines in its sole discretion. The Committee may
also prescribe procedures by which Participants must notify the Committee with respect to any such modifications. A Participant’s subscription agreement shall remain in effect for successive (and overlapping) Offering Periods unless terminated
as provided in Section 10. 
 (e) Notwithstanding the foregoing, to the extent necessary to comply with the limitations of
Section 423(b)(8) of the Code and Sections 3(b) and 6(b), a Participant’s payroll deductions may be decreased to 0% at any time during an Offering Period. In such event, payroll deductions shall recommence at the rate provided in such
Participant’s subscription agreement at the beginning of the first Offering Period scheduled to end in the following calendar year, unless terminated by the Participant as provided in Section 10. 

(f) If a Participant is also a participant in a profit sharing plan subject to Sections 401(a) and 401(k) of the Code that is maintained
by the Company or any Parent or Subsidiary and receives a hardship distribution under such plan, the Participant’s payroll deductions under this Plan shall cease for a period of six months from the date of such hardship distribution.

 (g) At the time an option granted hereunder is exercised, in whole or in part, or at the time some or all of the Shares
issued under the Plan are disposed of, the Participant must make adequate provision for U.S. Federal, state or other tax withholding 

  
 ESPP as amended 

4 

 
obligations, if any, arising upon the exercise of the option or the disposition of the Shares. The Company may, but shall not be obligated to, withhold from the Participant’s compensation
the amount necessary for the Company to meet applicable withholding obligations related to the Participant’s tax obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to
sale or early disposition of Shares by the Employee that may be available to it. 
 7. Grant of Option. 

Effective on the Grant Date of each Offering Period, each Participant in such Offering Period shall be granted an option to purchase on
the Purchase Date of such Offering Period, at the applicable Purchase Price, a number of Shares determined by dividing (i) such Participant’s total payroll deductions actually made during such Offering Period and retained in the
Participant’s account as of such Purchase Date by (ii) such Purchase Price. 
 8. Exercise of Option. 

(a) Unless a Participant withdraws from the Plan as provided in Section 10, and except to the extent that the limitation of
Section 423(b)(8) of the Code or Section 6(b) would otherwise be violated, the Participant’s option for the purchase of Shares shall be exercised automatically on the applicable Purchase Date, and the maximum number of whole Shares
subject to such option shall be purchased for such Participant at the applicable Purchase Price with the accumulated payroll deductions in the Participant’s account. During a Participant’s lifetime, a Participant’s option to purchase
Shares hereunder is exercisable only by such Participant. 
 (b) Each option granted hereunder shall expire on
the applicable Purchase Date after giving effect to the provisions of Section 8(a). 
 (c) A
Participant’s option to purchase Shares hereunder shall expire as of the date such Participant is no longer employed by the Company or a Designated Subsidiary, as applicable (as provided in Section 11), unless it has previously expired
pursuant to Section 8(b). 
 9. Delivery; Dividends; Subsequent Transfer or Disposition by Participant. 

(a) The Committee may prescribe procedures by which the Company shall evidence the transfer (including a transfer by electronic
transaction) of Shares purchased on each Purchase Date upon exercise of an option by a Participant. Such procedures may include the issuance of a stock certificate or the registration in book-entry form of the Shares in the Company’s (or its
agent’s) records. 
 (b) If dividends are declared by the Company and Shares are held in a Participant’s Plan account,
the Committee shall determine, in its sole discretion, how such dividends shall be distributed with respect to such Shares. The Committee may, for example, require that such dividends be deposited directly into the Participant’s Plan

  
 ESPP as amended 

5 

 
account and be used for the purchase of additional Shares on the next Purchase Date following the date on which the dividends are paid. 

(c) For a period of two years after the Grant Date of any option granted hereunder and one year after the Purchase Date on which such
option is exercised, no Participant shall transfer any Shares purchased upon exercise of such option from such Participant’s Plan account to a different brokerage or other account. After the holding periods described in this Section 9(c)
with respect to any option granted hereunder, a Participant may transfer Shares purchased upon exercise of such option to a different brokerage or other account. 
 (d) During each period described in Section 9(c) with respect to any option granted hereunder, any disposition of Shares purchased upon exercise of such option by such Participant will be treated as
a “disqualifying disposition” pursuant to Section 423 of the Code to the extent provided therein. A disposition of such Shares by the Participant after the holding periods described in Section 9(c) shall be treated as a
“qualifying disposition” pursuant to Section 423 of the Code to the extent provided therein. 
 10. Withdrawal.

 A Participant may revoke his or her election to participate in the Plan at any time. The Committee may prescribe procedures by
which Participants must notify the Committee with respect to any such revocation. Such revocation shall be effective as soon as practicable after receipt thereof by the Committee, in the form prescribed by the Committee. Upon receipt by the
Committee of such revocation, all amounts credited to such Participant’s Plan account shall be returned to the Participant as soon as administratively feasible thereafter. Such Participant may again participate in the Plan, effective as of any
subsequent Offering Period, by completing a new subscription agreement, as provided in Section 5(a). Unless the Committee receives a revocation within the time period prior to the applicable Purchase Date that is established by the Committee
and communicated to Participants, such revocation shall not be effective to avoid the exercise of an option under the Plan on such Purchase Date. In the event that a Participant either revokes his or her election to participate in the Plan or ceases
to be an Employee for any reason at any time, any fractional Share held in such Participant’s account shall be exchanged for cash based on such fractional Share’s fair market value, which shall be distributed to the Participant as soon as
administratively feasible thereafter. 
 11. Termination of Employment. 

Upon a Participant’s ceasing to be an Employee for any reason at any time on or before a Purchase Date of an Offering Period, he or
she shall be deemed to have elected to withdraw his or her payroll deduction election, and the payroll deductions credited to such Participant’s account during such Offering Period shall be returned to such Participant or, in the case of a
Participant’s death, to the person or persons entitled thereto under Section 15, and such Participant’s option shall be automatically terminated. The 

  
 ESPP as amended 

6 

 
Participant shall retain his or her rights under the Plan with respect to any Shares held in his or her Plan account. 
 12. No Interest. 
 No interest shall accrue or be payable on the payroll
deductions of a Participant in the Plan. 
 13. Stock. 
 (a) The Shares to be sold to Participants under the Plan may, at the election of the Company, be either treasury shares or shares newly issued by the Company. 

(b) Subject to adjustment upon changes in capitalization of the Company as provided in Section 19, the maximum number of Shares
available for sale under the Plan shall be 1,000,000 Shares. If on a given Purchase Date the number of Shares with respect to which options are to be exercised exceeds the number of Shares then available under the Plan, the Company shall make a
pro rata allocation of the Shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable. 
 (c) A Participant shall have no interest or voting rights in Shares covered by the Participant’s option or in any dividends declared by the Company in respect of its outstanding Shares until such
option has been exercised. 
 14. Administration. 
 The Plan shall be administered by the Committee. The express grant in the Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee. No member
of the Committee shall be liable for any act done in good faith with respect to the Plan or any subscription agreement or option granted under the Plan. To the extent not delegated to Participants by the Committee, the Company shall bear all
expenses of Plan administration. The interpretation and construction by the Committee of any terms or provisions of the Plan or of any rule or regulation promulgated in connection herewith shall be conclusive and binding on all persons. All
determinations of the Committee shall be made by a majority of its members. In addition to all other authority vested with the Committee under the Plan, the Committee shall have the sole and absolute discretion to: 

(a) construe and interpret all provisions of the Plan; 
 (b) prescribe the form of any subscription agreement or notice hereunder and the manner for executing or giving the same; 
 (c) establish, amend, and revoke such rules and regulations as it may deem appropriate for the proper administration of the Plan; 

  
 ESPP as amended 

7 

 (d) delegate to one or more individuals the right to act on its behalf in such matters as it
may authorize; and 
 (e) make all determinations it deems advisable for the proper administration of the Plan. 

15. Designation of Beneficiary. 
 (a) A Participant may file a written designation of a beneficiary who is to receive any Shares and cash, if any, from the Participant’s account under the Plan in the event of such Participant’s
death subsequent to any Purchase Date on which the option is exercised, but before delivery to such Participant of such Shares and cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the
Participant’s account under the Plan in the event of such Participant’s death before exercise of the option. If a Participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such
designation to be effective, if such consent is required under applicable law. 
 (b) Such designation of beneficiary may be
changed by the Participant at any time by written notice. In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the Company shall
deliver such Shares or cash to the executor or administrator of the estate of the Participant or, if to the best of the Company’s knowledge no such executor or administrator has been appointed, the Company, in its discretion, may deliver such
Shares or cash to the spouse or to any one or more dependents or relatives of the Participant, or, if no spouse, dependent, or relative is known to the Company, then to such other person as the Company may designate. 

16. Transferability. 

Neither payroll deductions credited to a Participant’s account nor any rights with regard to the exercise of an option or to receive
Shares under the Plan may be assigned, transferred, pledged, or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 15) by the Participant. Any such attempt at assignment,
transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 10. 

17. Use of Funds. 
 All
payroll deductions received or held by the Company under the Plan shall be general corporate funds and as such may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions or pay
interest thereon. 

  
 ESPP as amended 

8 

 18. Reports. 
 Individual accounts shall be maintained for each Participant in the Plan. Statements of account shall be given to Participants at least annually, which statements shall set forth the amounts of payroll
deductions, the Purchase Price, the number of Shares purchased, and the remaining cash balance, if any. The statements shall also include any additional information that must be included under applicable Treasury Regulations. 

19. Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger, or Asset Sale. 

(a) Subject to any required action by the stockholders of the Company and the requirements of applicable law, the Reserves, the maximum
number of Shares each Participant may purchase per Offering Period, as well as the price per Share and the number of Shares covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for any increase or
decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, spin-off, extraordinary dividend or any other increase or decrease in the number of Shares
effected without receipt of consideration by the Company. Such adjustment shall be made by the Committee, whose determination in that respect shall be final and binding on all parties. Except as expressly provided herein, no issuance by the Company
of shares of stock of any class, or of securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an option. 

(b) In the event of the proposed dissolution or liquidation of the Company, or in the event of a proposed sale of all or substantially
all of the assets of the Company, or a proposed merger of the Company with or into another corporation, options granted under the Plan shall terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the
Committee. In such instances, the Committee may in its sole discretion declare that any option shall terminate as of the date fixed by the Committee and (i) accelerate a Participant’s right to purchase any or all of the Shares subject to
such option or (ii) refund any cash held in a Participant’s Plan account. 
 20. Amendment and Termination. 

(a) The Board may at any time and for any reason amend or terminate the Plan. Except as provided in Section 19, no such termination
can affect options previously granted, provided that an Offering Period may be terminated by the Board if the Board determines that the termination of the Offering Period or the Plan is in the best interests of the Company and its stockholders. In
connection with such termination, the Board may accelerate a Participant’s right to purchase any or all of the Shares pursuant to an option previously granted hereunder or refund any cash held in a Participant’s Plan account. Except as
provided in Section 19 and this Section 20, no amendment may make any change in any option theretofore granted that results in a material adverse effect to the rights of any Participant. To the extent necessary to comply with
Section 423 of the 

  
 ESPP as amended 

9 

 
Code (or any other applicable law, regulation, or stock exchange rule), the Company shall obtain stockholder approval in such manner and to such degree as required. 

(b) Without stockholder consent and without regard to whether any Participant’s rights may be considered to have been
“adversely affected,” the Board shall be entitled to: (i) change the Offering Periods, the maximum amount of permitted payroll deductions, and the frequency or number of permitted changes in the amount withheld during an Offering
Period; (ii) establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars; (iii) permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes
in the Company’s processing of properly completed withholding elections; (iv) establish reasonable waiting and adjustment periods and accounting and crediting procedures to ensure that amounts applied toward the purchase of Shares for each
Participant properly correspond with amounts withheld from the Participant’s Compensation; and (v) establish such other limitations and procedures as the Board determines in its sole discretion are advisable. 

(c) In the event that the Board determines that the ongoing operation of the Plan may result in unfavorable financial accounting
consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequences including, but not limited to: 

(1) altering the Purchase Price for any Offering Period, including an Offering Period underway at the time of the change in Purchase
Price; or 
 (2) shortening any Offering Period so that the Offering Period ends on a new Purchase Date, including an Offering
Period underway at the time of the Board action. Such modifications or amendments shall not require stockholder approval or the consent of any Plan Participants. 
 21. Notices. 
 All notices or other communications by a Participant to the
Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

22. Conditions Upon Issuance of Shares. 
 (a) Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such Shares pursuant thereto will comply with all applicable provisions of law,
domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange on which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect to such compliance. 

  
 ESPP as amended 

10 

 (b) As a condition to the exercise of an option, the Company may require the person
exercising such option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the
Company, such a representation is required by any of the aforementioned applicable provisions of law. The Committee may also require such other action or agreement by the Participants as may from time to time be necessary to comply with applicable
laws, rules and regulations. This provision shall not obligate the Company or any Parent or Subsidiary to undertake registration or qualification of options or Shares hereunder or to perfect an exemption from such registration or qualification
requirements. 
 (c) Any certificate issued to evidence Shares for which an option is exercised may bear such legends and
statements as the Company or Committee may deem advisable to assure compliance with applicable laws, rules, regulations and Plan provisions. 

23. Term of Plan. 
 The
Plan shall become effective at the first Grant Date following its adoption by the Board, subject to approval by the Company’s stockholders in accordance with Section 1.423-2(c) of the Treasury Regulations. Once effective, the Plan shall
continue in effect for a term of ten years unless sooner terminated by the Board pursuant to Section 20. 
 24. Additional Restrictions
of Rule 16b-3. 
 The terms and conditions of options granted hereunder to, and the purchase of Shares by, persons subject to
Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3. In the cases of any such persons, the Plan and options issued to such persons shall be deemed to contain, and the Shares issued upon exercise of such
options shall be subject to, such additional conditions and restrictions as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions on behalf of such persons.

 25. Effect on Employment. 
 Neither the adoption of the Plan, its operation, nor any documents describing or referring to the Plan (or any part thereof) shall confer upon any Employee any right to continue in the employ of the
Company or a Designated Subsidiary or in any way affect any right and power of the Company or a Designated Subsidiary to terminate the employment of any Employee at any time with or without assigning a reason therefor. 

26. Unfunded Plan. 
 The
Plan, insofar as it provides for grants, shall be unfunded, and the Company shall not be required to segregate any assets that may at any time be represented by grants under the Plan. Any liability of the Company to any person with respect to any
grant under the Plan shall be based solely upon contractual obligations that may be created hereunder. No such obligation of the Company shall be deemed to be secured by any 

  
 ESPP as amended 

11 

 
pledge of, or other encumbrance on, any property of the Company or any Parent or Subsidiary. 
 27. Rules of Construction. 
 Headings are given to the articles and sections
of this Plan solely as a convenience to facilitate reference. The reference to any statute, regulation or other provision of law shall be construed to refer to any amendment to or successor of such provision of law. Whenever the word
“include”, “includes” or “including” is used in the Plan, it shall be deemed to be followed by the words “but not limited to”. 
 28. Governing Law. 
 The laws of the State of Delaware shall apply to all
matters arising under this Plan, to the extent that Federal law does not apply. 
 29. Compliance with Securities Laws. 

Transactions under this Plan are intended to comply with all applicable securities laws. To the extent any provision of this Plan or
action by the Committee fails to so comply, the same shall be deemed null and void to the extent permitted by law and deemed advisable by the Committee. 
 30. Interpretation. 
 The provisions of the Plan shall be construed in a
manner consistent with the requirements of Section 423 and related sections of the Code. 

  
 ESPP as amended 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]