Document:

EX-4.1

 Exhibit 4.1 
  

 
 Twenty-Fifth Supplemental Indenture

 Dated as of June 12, 2015 

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 3.50% SENIOR NOTES
	  	 	4	  
			
	 SECTION 201
	 	 Establishment and Designation of the 3.50% Senior Notes
	  	 	4	  
			
	 SECTION 202
	 	 Form of the 3.50% Senior Notes
	  	 	4	  
			
	 SECTION 203
	 	 Principal Amount of the 3.50% Senior Notes
	  	 	4	  
			
	 SECTION 204
	 	 Interest Rates; Stated Maturity of the 3.50% Senior Notes; Minimum Denomination
	  	 	4	  
			
	 SECTION 205
	 	 No Sinking Fund
	  	 	5	  
			
	 SECTION 206
	 	 Paying Agent and Bond Registrar
	  	 	5	  
			
	 SECTION 207
	 	 Global Securities; Appointment of Depositary for Global Securities
	  	 	5	  
			
	 SECTION 208
	 	 Other Terms of the 3.50% Senior Notes
	  	 	5	  
			
	 ARTICLE III
	 	 OPTIONAL REDEMPTION 3.50% SENIOR NOTES BY COMPANY
	  	 	5	  
			
	 SECTION 301
	 	 Optional Redemption of 3.50% Senior Notes
	  	 	5	  
			
	 SECTION 302
	 	 Calculation of Redemption Price
	  	 	6	  
			
	 SECTION 303
	 	 Notice of Redemption.
	  	 	6	  
			
	 ARTICLE IV
	 	 REOPENING OF 4.30% SENIOR NOTES
	  	 	7	  
			
	 ARTICLE V
	 	 MISCELLANEOUS
	  	 	7	  
			
	 SECTION 501
	 	 Application of Twenty-Fifth Supplemental Indenture
	  	 	7	  
			
	 SECTION 502
	 	 Effective Date of Twenty-Fifth Supplemental Indenture
	  	 	7	  
			
	 SECTION 503
	 	 Counterparts
	  	 	7	  
			
	 EXHIBIT A
	 		  			
	 EXHIBIT B
	 		  			

  
 i 

 TWENTY-FIFTH SUPPLEMENTAL INDENTURE, dated as of June 12, 2015 (this “Twenty-Fifth
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 Supplemental 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”), the Fourteenth Supplemental Indenture, dated as of September 12, 2011 (the “Fourteenth Supplemental Indenture”), the Fifteenth Supplemental
Indenture, dated as of November 22, 2011 (the “Fifteenth Supplemental Indenture”), the Sixteenth Supplemental Indenture, dated as of December 1, 2011 (the “Sixteenth Supplemental Indenture”), the Seventeenth
Supplemental Indenture, dated as of April 16, 2012 (the “Seventeenth Supplemental Indenture”), the Eighteenth Supplemental Indenture, dated as of August 16, 2012 (the “Eighteenth Supplemental Indenture”), the Nineteenth
Supplemental Indenture, dated as of June 14, 2013 (the “Nineteenth Supplemental Indenture”), the Twentieth Supplemental Indenture, dated as of November 12, 2013 (the “Twentieth Supplemental Indenture”), the Twenty-First
Supplemental Indenture, dated as of February 21, 2014 (the “Twenty-First Supplemental Indenture”), the Twenty-Second Supplemental Indenture, dated as of May 12, 2014 (the “Twenty-Second Supplemental Indenture”), the
Twenty-Third Supplemental Indenture, dated as of August 18, 2014 (the “Twenty-Third Supplemental Indenture”), the Twenty-Fourth Supplemental Indenture, dated as of November 6, 2014 (the “Twenty-Fourth Supplemental
Indenture”), and this Twenty-Fifth Supplemental Indenture (this “Twenty-Fifth 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, the Thirteenth Supplemental Indenture, the 

 
Fourteenth Supplemental Indenture, the Fifteenth Supplemental Indenture, the Sixteenth Supplemental Indenture, the Seventeenth Supplemental Indenture, the Eighteenth Supplemental Indenture, the
Nineteenth Supplemental Indenture, the Twentieth Supplemental Indenture, the Twenty-First Supplemental Indenture, the Twenty-Second Supplemental Indenture, the Twenty-Third Supplemental Indenture and the Twenty-Fourth 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 Twenty-Fifth 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 Twenty-Fifth 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 4.30% Senior Notes and the 3.50% Senior Notes (both as defined below) with respect to all provisions herein applicable to each 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 Twenty-Fifth Supplemental Indenture and shall have the meanings set forth in this Twenty-Fifth Supplemental Indenture only for purposes of this Twenty-Fifth Supplemental
Indenture: 
 “3.50% Senior Notes” has the meaning set forth in Section 201 hereto. 

“4.30% Senior Notes” has the meaning set forth in Article IV hereto. 

“Adjusted Treasury Rate” means, with respect to any Redemption Date for any 3.50% Senior Note, 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.

  
 2 

 “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 3.50% Senior Notes to be redeemed 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 3.50% Senior Notes to be redeemed. 
 “Comparable
Treasury Price” means, with respect to any Redemption Date for any 3.50% Senior Note, (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 3.50% Senior Notes may be redeemed pursuant to Section 301(a) or
Section 301(b) hereto, as applicable. 
 “Reference Treasury Dealer” means (1) each of Citigroup Global Markets
Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc., 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 3.50% Senior Notes that the Company is redeeming pursuant to Section 301(a) hereto, the remaining scheduled payments of principal and interest that would be due after the applicable
Redemption Date if such 3.50% Senior Notes were not redeemed. However, if the Redemption Date is not a scheduled Interest Payment Date with respect to such 3.50% Senior Notes, the amount of the next succeeding scheduled interest payment on such
3.50% Senior Notes will be reduced by the amount of interest accrued on such 3.50% 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)

  
 3 

 
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 Twenty-Fifth
Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision. 
 ARTICLE II 

ESTABLISHMENT OF THE 3.50% SENIOR NOTES 

SECTION 201 Establishment and Designation of the 3.50% Senior Notes. 

Pursuant to the terms hereof and Section 3.01 of the Indenture, the Company hereby establishes a forty-eighth series of Bonds designated
as the “3.50% Senior Notes due June 15, 2025” (the “3.50% Senior Notes”). The 3.50% Senior Notes may be reopened, from time to time, for issuances of additional Bonds of such series, and any additional Bonds issued and
comprising 3.50% Senior Notes shall have identical terms as the 3.50% 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 3.50% Senior Notes. 

The 3.50% 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 3.50% Senior Notes. 

The 3.50% Senior Notes shall be issued in an initial aggregate principal amount of $400,000,000. 

SECTION 204 Interest Rates; Stated Maturity of the 3.50% Senior Notes; Minimum Denomination. 

The 3.50% Senior Notes shall bear interest at the rate of 3.50% per annum and shall have a Stated Maturity of June 15, 2025. 

The 3.50% Senior Notes are issuable in denominations of $1,000 and any integral multiple of $1,000 in excess thereof. 

  
 4 

 SECTION 205 No Sinking Fund. 

No sinking fund is provided for the 3.50% Senior Notes. 

SECTION 206 Paying Agent and Bond Registrar. 

The Trustee is hereby appointed as initial Paying Agent and initial Bond Registrar for the 3.50% Senior Notes. The Place of Payment of the
3.50% Senior Notes shall be the Corporate Trust Office of the Trustee. 
 SECTION 207 Global Securities; Appointment of Depositary for
Global Securities. 
 The 3.50% 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 3.50% Senior
Notes, and the 3.50% 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. 
 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 3.50% Senior Notes. 

The other terms of the 3.50% Senior Notes shall be as expressly set forth herein and in Exhibit A. 

ARTICLE III 
 OPTIONAL
REDEMPTION 3.50% SENIOR NOTES BY COMPANY 
 SECTION 301 Optional Redemption of 3.50% Senior Notes. 

(a) Subject to the terms and conditions of the Indenture, at any time prior to March 15, 2025 (the date that is three months prior to the
Maturity Date), the 3.50% 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 3.50% Senior Notes to be redeemed; or 

  
 5 

 (ii) as determined by the Quotation Agent, the sum of the present values of the
Remaining Scheduled Payments of principal and interest on the 3.50% Senior Notes to be redeemed (not including any portion of payments of interest accrued as of the Redemption Date), calculated as if the Maturity Date of such 3.50% Senior Notes was
March 15, 2025 (the date that is three months prior to the Maturity Date), discounted to the Redemption Date on a semiannual 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 March 15, 2025 (the date that is three months prior to
the Maturity Date), the 3.50% Senior Notes are redeemable at the option of the Company in whole or in part at 100% of the principal amount of the 3.50% 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 the redemption of any 3.50%
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. 

SECTION 303 Notice of Redemption. Notice of any redemption pursuant to Section 301 shall be given to Holders of the 3.50%
Senior Notes not less than ten (10) days nor more than sixty (60) days prior to the Redemption Date in the manner 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 3.50% Senior Notes being redeemed. Notwithstanding Section 6.02 of the Indenture, if the Company elects to redeem
3.50% Senior Notes pursuant to Section 301 hereof, it shall give written notice to the Trustee of such Redemption Date and of the principal amount of the 3.50% Senior Notes to be redeemed at least twenty (20) days prior to the redemption
date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee). 

  
 6 

 ARTICLE IV 

REOPENING OF 4.30% SENIOR NOTES 

Pursuant to the Section 201 of the Twenty-Fourth Supplemental Indenture, the 4.30% series of Bonds established by said section and
designated as the “4.30% Senior Notes due March 15, 2045” (the “4.30% Senior Notes”) is reopened and additional Bonds comprising part of such series shall be issued in the aggregate principal amount of $100,000,000 and shall
be issued in the form of one or more Global Bonds in substantially the form set forth in Exhibit B hereto. As a result of the further issuance of $100,000,000 aggregate principal amount of Bonds of the forty-seventh series on June 12, 2015, the
issued amount of Bonds of such series now totals $600,000,000. 
 ARTICLE V 

MISCELLANEOUS 
 SECTION
501 Application of Twenty-Fifth Supplemental Indenture. 
 Except as provided in Section 501 hereof, each and every term
and condition contained in this Twenty-Fifth Supplemental Indenture that modifies, amends or supplements the terms and conditions of the Indenture shall apply only to the 4.30% Senior Notes and the 3.50% Senior Notes, as applicable, 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 Twenty-Fifth Supplemental Indenture, the Indenture shall remain in full force and effect and is
hereby ratified and confirmed. 
 SECTION 502 Effective Date of Twenty-Fifth Supplemental Indenture. 

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

SECTION 503 Counterparts. 

This Twenty-Fifth 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. 

  
 7 

 IN WITNESS WHEREOF, the parties hereto have caused this Twenty-Fifth 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:		Vice President and Treasurer
	
	 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

		
	By:		 /s/ Valere D. Boyd

	Name:		Valere D. Boyd
	Title:		Vice President

 Signature Page to Twenty-Fifth Supplemental Indenture 

 EXHIBIT A 

FORM OF 3.50% SENIOR NOTES DUE JUNE 15, 2025 

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 :
 $400,000,000
		 ORIGINAL ISSUE DATE:
 June 12,
2015
		INTEREST RATE: 3.50% per annum
			
	MATURITY DATE:		INTEREST PAYMENT DATES:		THIS SENIOR NOTE IS A:
			
	June 15, 2025		June 15 and December 15, commencing		x  Global Book-Entry Bond
			December 15, 2015		 ̈  Certificated Bond
			
	REGISTERED OWNER: Cede & Co., as nominee of The Depository Trust Company				

  
 A-1 

 PACIFIC GAS AND ELECTRIC COMPANY 

3.50% SENIOR NOTES DUE JUNE 15, 2025 

(Fixed Rate) 
  

					
	 No. R-1
		Principal Amount: $	400,000,000	  
	 CUSIP No: 694308 HM2
				

 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 3.50%
Senior Note due June 15, 2025 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 December 15, 2015 at the rate of 3.50% 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 3.50% Senior Note due June 15, 2025 (this “Senior Note,” and together with all other 3.50% Senior Notes due
June 15, 2025, 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 June 12, 2015 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 date the payment was originally payable. If the Maturity Date falls on a day that is not a

  
 A-2 

 
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:             , 2015 

 

			
	PACIFIC GAS AND ELECTRIC COMPANY
		
	By:		  

	Name:		Kent M. Harvey
	Title:		Senior Vice President, Financial Services
		
	By:		  

	Name:		Nicholas M. Bijur
	Title:		Vice President and Treasurer

  
 A-4 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This Senior Note is one of the Bonds of the series designated as Bonds of the Forty-Eighth Series referred to in the within-mentioned
Indenture. 
 Dated:             , 2015 

 

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

			Authorized Signatory

  
 A-5 

 Reverse of Senior Note 

This 3.50% Senior Note due June 15, 2025 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 Seventh Supplemental Indenture, dated as of June 11, 2009, a Twentieth
Supplemental Indenture, dated as of November 12, 2013 and a Twenty-Fifth Supplemental Indenture, dated as of June 12, 2015 (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
forty-eighth series designated as the 3.50% Senior Notes due June 15, 2025 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 March 15, 2025 (the date that is three months prior to the Maturity Date) 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), calculated as if the Maturity Date of such Senior Notes was March 15, 2025 (the date that is three months prior
to the Maturity 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 March 15, 2025 (the date that is three months prior to the Maturity Date) 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. 

  
 A-6 

 In the case of an Optional Redemption, notice of redemption will be in writing and mailed
first-class postage-prepaid not less than 10 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 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 

  
 A-7 

 
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, 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. 

  
 A-8 

 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 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-10 

 EXHIBIT B 

FORM OF 4.30% SENIOR NOTES DUE MARCH 15, 2045 

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 :
 $100,000,000
		 ORIGINAL ISSUE DATE:
 November 6,
2014
		INTEREST RATE: 4.30% per annum
			
	MATURITY DATE:		INTEREST PAYMENT DATES:		THIS SENIOR NOTE IS A:
			
	March 15, 2045		March 15 and September 15, commencing		x  Global Book-Entry Bond
			September 15, 2015		 ̈  Certificated Bond
			
	REGISTERED OWNER: Cede & Co., as nominee of The Depository Trust Company				

  
 B-1 

 PACIFIC GAS AND ELECTRIC COMPANY 

4.30% SENIOR NOTES DUE MARCH 15, 2045 

(Fixed Rate) 
  

					
	 No. R-2
		Principal Amount: $	100,000,000	  
	 CUSIP No: 694308 HL4
				

 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 4.30%
Senior Note due March 15, 2045 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 September 15, 2015 at the rate of 4.30% 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 4.30% Senior Note due March 15, 2045 (this “Senior Note,” and together with all other 4.30% Senior Notes due
March 15, 2045, 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 March 15, 2015 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 date the payment was originally payable. If the Maturity Date falls on a day that is not a

  
 B-2 

 
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. 

  
 B-3 

 IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed. 
 Dated:             , 2015 

 

			
	PACIFIC GAS AND ELECTRIC COMPANY
		
	By:		  

	Name:		Kent M. Harvey
	Title:		Senior Vice President, Financial Services
		
	By:		  

	Name:		Nicholas M. Bijur
	Title:		Vice President and Treasurer

  
 B-4 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This Senior Note is one of the Bonds of the series designated as Bonds of the Forty-Seventh Series referred to in the within-mentioned
Indenture. 
 Dated:             , 2015 

 

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

			Authorized Signatory

  
 B-5 

 Reverse of Senior Note 

This 4.30% Senior Note due March 15, 2045 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 Seventh Supplemental Indenture, dated as of June 11, 2009, a Twentieth
Supplemental Indenture, dated as of November 12, 2013, a Twenty-Fourth Supplemental Indenture, dated as of November 6, 2014, and a Twenty-Fifth Supplemental Indenture, dated June 12, 2015 (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 forty-seventh series designated as the 4.30% Senior Notes due March 15, 2045 established by the Company under the Indenture and initially issued in an aggregate principal amount of
$500,000,000 on November 6, 2014. As a result of the further issuance of $100,000,000 aggregate principal amount of Bonds of the forty-seventh series on June 12, 2015, the issued amount of Bonds of such series now totals $600,000,000. 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 September 15, 2044 (the date that is six months prior to the Maturity Date) 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), calculated as if the Maturity Date of such Senior Notes was September 15, 2044 (the date that is six months prior
to the Maturity 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 September 15, 2044 (the date that is six months prior to the Maturity Date) 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. 

  
 B-6 

 In the case of an Optional Redemption, notice of redemption will be in writing and mailed
first-class postage-prepaid not less than 10 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 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

  
 B-7 

 
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, 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. 

  
 B-8 

 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 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. 

  
 B-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.

  
 B-10tbuff_ex101.htm

Exhibit 10.1

 

SUPPORT AGREEMENT

 

THIS AGREEMENT is made as of the ____ day of June, 2015.

 

BETWEEN:

 

[INSERT SHAREHOLDER NAME], an individual resident in the City of ●, Ontario (the "Shareholder")

 

-and-

 

ARLZ CA ACQUISITION CORP., a corporation existing under the laws of the Province of Ontario ("Purchaser")

 

WHEREAS the Shareholder is the registered and/or direct or indirect beneficial owner of (i) that number of issued and outstanding Tribute Shares (as defined herein), (ii) that number of Tribute Options (as defined herein) and (iii) that number of Tribute Warrants (as defined herein), in each case as set forth opposite its name on Schedule A hereto;

 

AND WHEREAS the Shareholder understands that Purchaser and Tribute Pharmaceuticals Canada Inc. ("Tribute"), among others, are, concurrently with the execution and delivery of this Agreement, executing and delivering the Arrangement Agreement (as defined herein) providing for the Arrangement (as defined herein);

 

AND WHEREAS this Agreement sets out the terms and conditions of the agreement of the Shareholder to (i) vote its Tribute Shares or cause the same to be voted in favour of the Arrangement Resolution (as defined herein) and (ii) abide by the other restrictions and covenants set forth herein;

 

AND WHEREAS the Shareholder acknowledges that Purchaser would not enter into the Arrangement Agreement but for the execution and delivery of this Agreement by the Shareholder;

 

NOW THEREFORE this Agreement witnesses that, in consideration of the premises and the covenants and agreements herein contained, the parties hereto agree as follows:

 

ARTICLE 1

INTERPRETATION

 

	
1.1  

	
Definitions

 

In this Agreement, unless the context otherwise requires:

 

"affiliate" has the meaning ascribed thereto in the Securities Act;

 

"Arrangement" means the arrangement under Section 182 of the OBCA on the terms and subject to the conditions set out in the Plan of Arrangement, subject to any amendments or variations thereto made in accordance with the Arrangement Agreement or the Plan of Arrangement or made at the direction of the Court in the Final Order with the consent of Tribute and the Purchaser, each acting reasonably;

 

  

  

  

 

"Arrangement Agreement" means the agreement and plan of merger and arrangement dated the date hereof between Purchaser, Tribute, Aguono Limited, Trafwell Limited, ARLZ US Acquisition Corp. and POZEN Inc. as it may be amended, supplemented or otherwise modified from time to time in accordance with its terms;

 

"Arrangement Resolution" means the special resolution approving the Plan of Arrangement to be considered at the Tribute Meeting;

 

"beneficially own", "beneficial ownership", "beneficial owner" and similar expressions with respect to any security means all securities that are owned, directly or indirectly, or over which control or direction of the voting or disposition thereof may be exercised;

 

"OBCA" means the Business Corporations Act (Ontario) and the regulations made thereunder, as promulgated or amended from time to time;

 

"Consideration" means the consideration payable in respect of each Tribute Share to be paid by the Purchaser to the holders of Tribute Shares pursuant to the Arrangement, being [0.1455] shares of Aguono Limited per Tribute Share subject to adjustments as provided in the Plan of Arrangement;

 

"Court" means the Ontario Superior Court of Justice (Commercial List);

 

"Effective Date" means the date upon which the Arrangement becomes effective as provided in the Plan of Arrangement;

 

"Final Order" has the meaning ascribed thereto in the Arrangement Agreement;

 

"Governmental Entity" means (a) any multinational, federal, provincial, state, regional, municipal, local or other government, governmental or public department, central bank, court, tribunal, arbitral body, commission, board, bureau or agency, domestic or foreign, (b) any subdivision, agent, commission, board or authority of any of the foregoing, (c) any quasi-governmental or private body, including any tribunal, commission, regulatory agency or self-regulatory organization, exercising any regulatory, expropriation or taxing authority under or for the account of any of the foregoing, or (d) any stock exchange, including the Toronto Stock Exchange;

 

"including" means including without limitation, and "include" and "includes" have a corresponding meaning;

 

"Locked-Up Securities" means all Tribute Shares now beneficially owned or hereafter which become beneficially owned any time before the Effective Date by the Shareholder, including all Tribute Shares issuable upon the exercise of Tribute Options and/or Tribute Warrants now owned or hereafter acquired at any time before the Effective Date by the Shareholder, in each case as set forth in Schedule A hereto;

 

"Outside Date" means January 31, 2016, or such later date as may be agreed to in writing by the parties to the Arrangement Agreement;

 

"Plan of Arrangement" means the plan of arrangement, substantially in the form of Schedule II to the Arrangement Agreement, and any amendments or variations thereto made in accordance with the Arrangement Agreement or the Plan of Arrangement or made at the direction of the Court in the Final Order with the consent of Tribute and Pozen Inc., each acting reasonably;

 

  

2

  

 

"Securities Act" means the Securities Act (Ontario) and the rules, regulations and published policies made thereunder, as now in effect and as they may be promulgated or amended from time to time;

 

"subsidiary" means, with respect to a specified entity, any:

 

(a)           corporation of which issued and outstanding voting securities of such corporation to which are attached more than fifty percent (50%) of the votes that may be cast to elect directors of the corporation (whether or not shares of any other class or classes will or might be entitled to vote upon the happening of any event or contingency) are at all times owned by such specified entity;

 

(b)           partnership, unlimited liability company, joint venture or other similar entity in which such specified entity has more than fifty percent (50%) of the equity interests and the power to direct the policies, management and affairs thereof; and

 

(c)           Subsidiary (as defined in clauses (a) and (b) above) of any Subsidiary (as so defined) of such specified entity;

 

"Tribute Meeting" means the special meeting of Tribute shareholders, including any adjournment or postponement thereof, to consider, among other things, the Arrangement Resolution;

 

"Tribute Option" means an option granted by Tribute which provides the right to purchase one Tribute Share in accordance with the terms of such Tribute Option;

 

"Tribute Securities" means collectively, the Tribute Shares, the Tribute Options and the Tribute Warrants;

 

"Tribute Shares" means the common shares in the capital of Tribute, as currently constituted; and

 

"Tribute Warrants" means the warrants to purchase Tribute Shares in accordance with the terms of such Tribute Warrant.

 

All capitalized or defined terms not defined herein shall have the meanings attributed thereto in the Arrangement Agreement.

 

	
1.2  

	
Schedules

 

The following Schedule attached hereto constitutes an integral part of this Agreement:

	
Schedule A

	
-

	
Locked-Up Securities

 

  

3

  

 

ARTICLE 2

COVENANTS OF PURCHASER

 

	
2.1  

	
Amendment of Arrangement Agreement

 

Purchaser hereby covenants and agrees that Purchaser will not amend the Arrangement Agreement (a) to change the form of, or to decrease, the Consideration payable to the holders of Tribute Shares under the Arrangement or (b) in a manner that would otherwise be materially adverse to the interests of the Shareholder without the prior written consent of the Shareholder; provided that, for greater certainty, Purchaser may, without such consent, (i) amend the terms of the Arrangement Agreement (A) to increase the Consideration (or the value of the Consideration) under the Arrangement, (B) to extend the Effective Date to a date not later than the Outside Date, or (ii) to the extent that it has the power to do so, waive any condition of the Arrangement and/or Arrangement Agreement.  For greater certainty, nothing in this Article 2 shall prevent Purchaser from terminating this Agreement in accordance with Article 5.

 

ARTICLE 3

COVENANTS OF THE SHAREHOLDER

 

	
3.1  

	
General

 

The Shareholder hereby covenants and irrevocably agrees in favour of Purchaser that, from the date hereof until the earlier of (i) the Effective Date and (ii) the termination of this Agreement in accordance with Article 5, except as expressly permitted by this Agreement, the Shareholder shall and shall cause its affiliates to:

 

	
(a)  

	
vote, or cause to be voted, the Locked-Up Securities in favour of the Arrangement Resolution, and in connection therewith it will, on or before the fifth Business Day prior to the Tribute Meeting, duly complete and cause forms of proxy in respect of all Locked-Up Securities, and any other documents required in accordance with the Arrangement, to be validly delivered in support of the Arrangement Resolution, and will not withdraw the forms of proxy except as expressly otherwise provided in this Agreement;

 

	
(b)  

	
not option, sell, transfer, tender, deposit, pledge, encumber, grant a security interest in, hypothecate or otherwise convey or dispose of any Locked-Up Securities, or any right or interest therein (legal or equitable), to any person or group or agree to do any of the foregoing;

 

	
(c)  

	
except as provided in Section 3.1(a), not grant or agree to grant any proxy or other right to vote any Tribute Securities, or enter into any voting trust, vote pooling or other agreement with respect to the right to vote, call meetings of shareholders or give consents or approval of any kind as to any Tribute Securities;

 

	
(d)  

	
not take any other action of any kind which might reasonably be regarded as likely to reduce the success of, or delay or interfere with the completion of, the Arrangement and the other transactions contemplated by this Agreement and the Arrangement Agreement;

 

	
(e)  

	
not vote or cause to be voted any Tribute Securities in respect of (or, where requested by the Purchaser, shall vote against) any proposed action by Tribute or its shareholders or affiliates or any other person in a manner which might reasonably be regarded as likely to prevent or delay the successful completion of the Arrangement or the other transactions contemplated by the Arrangement Agreement and this Agreement;

 

  

4

  

 

	
(f)  

	
in the event that any transaction other than the Arrangement is presented for approval of or acceptance by the securityholders of Tribute, it shall vote against and shall not, directly or indirectly, vote in favour of, accept, assist or otherwise further the successful completion of such transaction or purport to tender or deposit into any such transaction any Tribute Securities;

 

	
(g)  

	
other than through the exercise of the Tribute Options or Tribute Warrants, not purchase or enter into any agreement or right to purchase any additional Tribute Securities or any other securities of Tribute from and including the date hereof until the termination of this Agreement;

 

	
(h)  

	
take all action to ensure that the representations and warranties in Section 4.1 remain true and correct at all times during the term of this Agreement, including as of the Effective Time, as if such representations and warranties were made at and as of such time except to the extent such representations and warranties speak as of an earlier date; and

 

	
(i)  

	
without limiting any of the foregoing, take all such steps as are necessary or advisable to ensure that at the Effective Time, its Locked-Up Securities will be held by the Shareholder with good and marketable title thereto, free and clear of any and all mortgages, liens, charges, restrictions, security interests, adverse claims, pledges, encumbrances and demands of any nature or kind whatsoever, and will not be subject to any shareholders' agreements, voting trust or similar agreements or any option, right or privilege (whether by law, pre-emptive or contractual) capable of becoming a shareholders' agreement, voting trust or other agreement affecting such Locked-Up Securities or the ability of any holder thereof to exercise all ownership rights thereto, including the voting of any such Locked-Up Securities.

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

 

	
4.1  

	
Representations and Warranties of the Shareholder

 

The Shareholder hereby represents and warrants to, and covenants with, Purchaser as follows, and acknowledges that Purchaser is relying upon such representations, warranties and covenants in entering into this Agreement:

 

	
(a)  

	
Incorporation; Authority. If the Shareholder is a corporation or other legal entity, the Shareholder is a subsisting corporation or other entity under the laws of its incorporating jurisdiction.  The Shareholder has all necessary power, authority, capacity and right to enter into this Agreement and to carry out each of its obligations under this Agreement. This Agreement has been duly executed and delivered by the Shareholder and constitutes a legal, valid and binding agreement enforceable by Purchaser against the Shareholder in accordance with its terms, subject, however, to limitations with respect to enforcement imposed by law in connection with bankruptcy or similar proceedings, the equitable power of the courts to stay proceedings before them and the execution of judgments and to the extent that equitable remedies such as specific performance and injunction are in the discretion of the court from which they are sought.

 

  

5

  

 

	
(b)  

	
Ownership of Shares and Other Securities. The Shareholder is, and will be at the Effective Time, the direct or indirect beneficial owner of the Locked-Up Securities set forth opposite its name in Schedule A hereto, with good and marketable title thereto, free and clear of any and all mortgages, liens, charges, restrictions, security interests, adverse claims, pledges, encumbrances and demands or rights of others of any nature or kind whatsoever. Neither the Shareholder nor any of its affiliates is a party to, bound or affected by or subject to, any charter or by-law, contract, provision, statute, regulation, judgment, order, decree or law which would be violated, contravened, breached by, or under which any default would occur (or an event which, with notice or lapse of time or both, would constitute a default) as a result of, the execution, delivery or performance of this Agreement or the consummation of any of the transactions provided for in this Agreement, including the Arrangement.

 

	
(c)  

	
No Agreements.  No person has any agreement or option, or any right or privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement or option, for the purchase, acquisition or transfer of any of such Locked-Up Securities, or any interest therein or right thereto, except pursuant to this Agreement.  None of the Locked-Up Securities is subject to any shareholders' agreement, voting trust or similar agreement or any option, right or privilege (whether by law, pre-emptive or contractual) capable of becoming a shareholders' agreement, voting trust or other agreement affecting such Locked-Up Securities or the ability of any holder thereof to exercise all ownership rights thereto, including the voting of any such Locked-Up Securities.

 

	
(d)  

	
Voting. None of the Locked-Up Securities is subject to any shareholder agreement, proxy, voting trust, vote pooling or other agreement with respect to the right to vote, call meetings of shareholders or give consents or approvals of any kind.

 

	
(e)  

	
Consents. No consent, waiver, approval, authorization, exemption, registration, licence or declaration of or by, or filing with, or notification to any Governmental Entity which has not been made or obtained is required to be made or obtained by the Shareholder in connection with (i) the execution, delivery or performance by the Shareholder and enforcement against the Shareholder of this Agreement or (ii) the consummation of any transactions by the Shareholder contemplated hereby, including the consummation of the Arrangement.

 

	
(f)  

	
Legal Proceedings. There are no legal proceedings in progress or pending before any Governmental Entity or threatened against the Shareholder or any of its affiliates that would adversely affect in any manner the ability of the Shareholder to enter into this Agreement and to perform its obligations hereunder or the title of the Shareholder to any of its Locked-Up Securities and there is no judgment, decree or order against the Shareholder that would adversely affect in any manner the ability of the Shareholder to enter into this Agreement and to perform its obligations hereunder or the title of the Shareholder to any of its Locked-Up Securities.

 

	
(g)  

	
No Other Securities.  The only securities of Tribute beneficially owned, directly or indirectly, by the Shareholder are the Locked-Up Securities and the Shareholder has no other agreement or option, or right or privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement or option, for the purchase or acquisition by the Shareholder or transfer to the Shareholder of additional securities of Tribute.

 

  

6

  

 

	
4.2  

	
Representations and Warranties of Purchaser

 

Purchaser hereby represents and warrants to the Shareholder as follows, and acknowledges that the Shareholder is relying upon such representations, warranties and covenants in entering into this Agreement:

 

	
(a)  

	
Organization and Qualification.  The Purchaser is a corporation duly incorporated or an entity duly created and validly existing under all applicable laws of its jurisdiction of incorporation, continuance or creation and has all necessary corporate or other power, authority and capacity to own its property and assets.

 

	
(b)  

	
Authority Relative to this Agreement.  Purchaser has the requisite corporate authority to enter into this Agreement and to carry out its obligations hereunder. This Agreement has been duly executed and delivered by Purchaser and constitutes a legal, valid and binding obligation of Purchaser enforceable against it in accordance with its terms, subject, however, to limitations with respect to enforcement imposed by law in connection with bankruptcy or similar proceedings, the equitable power of the courts to stay proceedings before them and the execution of judgments and to the extent that equitable remedies such as specific performance and injunction are in the discretion of the court from which they are sought.

 

	
(c)  

	
No Violations. Neither the execution and delivery of this Agreement by Purchaser nor the completion of the Arrangement pursuant to the Plan of Arrangement nor compliance by Purchaser with any of the provisions hereof will violate, conflict with, or result in a breach of any material provision of, require any consent, approval or notice under, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under (A) the articles of incorporation or Laws governing Purchaser or (B) any material contract or other instrument or obligation to which Purchaser is a party or to which it, or any of its  properties or assets, may be subject or by which Purchaser is bound and, in each case, individually or in the aggregate would materially adversely affect Purchaser's ability to perform its obligations under this Agreement or (C) violate any Law applicable to Purchaser or any of its subsidiaries or any of its properties or assets.

 

ARTICLE 5

TERMINATION

 

	
5.1  

	
Termination by Purchaser

 

Purchaser, when not in material default in the performance of its obligations under this Agreement, may, without prejudice to any of its rights hereunder and in its sole discretion, terminate this Agreement by written notice to the Shareholder if:

 

	
(a)  

	
any of the representations and warranties of the Shareholder under this Agreement (other than those set forth in Section 4.1(b), 4.1(c), 4.1(d) and 4.1(e)) shall not be true and correct in all material respects; or

 

	
(b)  

	
any of the representations and warranties of the Shareholder set forth in Section 4.1(b), 4.1(c), 4.1(d) and 4.1(e) of this Agreement shall not be true and correct in all respects;

 

  

7

  

 

	
(c)  

	
the Shareholder shall not have complied with its covenants to Purchaser contained in this Agreement in all material respects; or

 

	
(d)  

	
Purchaser requests consent from the Shareholder in respect of an amendment as contemplated in Article 2 and the Shareholder does not provide such consent within two (2) Business Days.

 

provided, however, that such termination shall be without prejudice to any rights which Purchaser may have or as a result of any default by the Shareholder prior to such termination.

 

	
5.2  

	
Termination by the Shareholder

 

The Shareholder, when not in material default in its performance of its obligations under this Agreement, may, without prejudice to any of its rights hereunder and in its sole discretion, terminate this Agreement by written notice to Purchaser if:

 

	
(a)  

	
any of the representations and warranties of Purchaser under this Agreement shall not be true and correct in all material respects;

 

	
(b)  

	
Purchaser shall not have complied with its covenants to the Shareholder contained herein in all material respects; or

 

	
(c)  

	
the Tribute Board of Directors has determined and notified POZEN Inc. that a Tribute Superior Proposal (as such term is defined in the Arrangement Agreement) exists.

 

	
5.3  

	
Automatic Termination

 

Unless extended by mutual agreement of the Shareholder and Purchaser, this Agreement shall automatically terminate on the earlier of the Effective Date and the Outside Date.  In addition, this Agreement shall automatically terminate in the event that the Arrangement Agreement is terminated in accordance with its terms.

 

	
5.4  

	
Agreement to Terminate

 

This Agreement may be terminated by a written instrument executed by each of Purchaser and the Shareholder.

 

	
5.5  

	
Effect of Termination

 

If this Agreement is terminated in accordance with this Article 5, the provisions of this Agreement will become void and no party shall have liability to any other party, except in respect of a breach of the representations, warranties, obligations, terms or conditions of this Agreement which occurred prior to such termination, in respect of which the parties shall be entitled to pursue any and all remedies at law or equity which may be available to them.

 

  

8

  

 

ARTICLE 6

GENERAL PROVISIONS

 

	
6.1  

	
Further Assurances

 

Each of the Shareholder and Purchaser will, from time to time, execute and deliver all such further documents and instruments and do all such acts and things as the other party may reasonably require (at the requesting party's cost) to effectively carry out or better evidence or perfect the full intent and meaning of this Agreement.

 

	
6.2  

	
Change in Nature of Transaction

 

	
  

	
If Purchaser and its counsel, and the board of directors of Tribute and its legal and financial advisors, agree that it is desirable to proceed with another form of transaction pursuant to which the Purchaser will acquire, no later than the Outside Date, all or substantially all of the Tribute Shares or assets of Tribute on economic terms (including tax treatment) which, in relation to the Shareholder, are at least equivalent to than those contemplated by the Arrangement (an "Alternative Transaction") the Shareholder will support the completion of such Alternative Transaction.

 

	
  

	
If any Alternative Transaction involves a meeting or meetings of holders of Tribute Shares, the Shareholder agrees to vote all of the Locked-Up Securities in favour of any matters necessary or ancillary to the completion of the Alternative Transaction.

 

	
  

	
In the event of any proposed Alternative Transaction, the references in this Agreement to the Arrangement shall be deemed to be changed to references to such Alternative Transaction and all terms, covenants, representations and warranties of this Agreement shall be and shall be deemed to have been made, mutatis mutandis, in the context of the Alternative Transaction.

 

	
6.3  

	
Survival of Representations and Warranties

 

No investigations made by or on behalf of Purchaser or any of its authorized agents at any time shall have the effect of waiving, diminishing the scope of or otherwise affecting any representation, warranty or covenant made by the Shareholder herein or pursuant hereto.

 

	
6.4  

	
Disclosure

 

Prior to the first disclosure of this Agreement, except as required by applicable laws or regulations or by any Governmental Entity or in accordance with the requirements of any stock exchange, no party shall make any public announcement or statement with respect to this Agreement without the approval of the other which shall not be unreasonably withheld or delayed.  The existence and terms and conditions of this agreement may be disclosed by the parties to the Arrangement Agreement in any news release of Pozen or Tribute announcing the Arrangement and in the disclosure documents prepared in respect of the Pozen Meeting and the Tribute Meeting.

 

	
6.5  

	
Entire Agreement, Binding Effect and Assignment

 

Purchaser may assign all or any part of its rights under this Agreement to, and its obligations under this Agreement may be assumed by, an affiliate of Purchaser, provided that if such assignment and/or assumption takes place, Purchaser shall continue to be liable jointly and severally with such affiliate for all of its obligations hereunder.  This Agreement shall be binding on and shall enure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

  

9

  

 

This Agreement (including the schedule hereto) constitutes the entire agreement, and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof and, except as expressly provided herein, this Agreement is not intended to and shall not confer upon any person other than the parties hereto any rights or remedies hereunder.  Except as expressly permitted by the terms hereof, neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by either of the parties hereto without the prior written consent of the other party.

 

	
6.6  

	
Severability

 

If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

 

	
6.7  

	
Time

 

Time shall be of the essence of this Agreement.

 

	
6.8  

	
Currency

 

All sums of money referred to in this Agreement shall mean Canadian funds.

 

	
6.9  

	
Governing Law

 

This Agreement shall be governed, including as to validity, interpretation and effect, by the laws of the Province of Ontario and the federal laws of Canada applicable therein. Each of the parties hereto hereby irrevocably attorns to the exclusive jurisdiction of the Courts of the Province of Ontario in respect of all matters arising under and in relation to this Agreement.

 

	
6.10  

	
Amendments

 

This Agreement may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written agreement executed by each of the parties hereto.

 

	
6.11  

	
Notices

 

All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made as of the date delivered or sent if delivered personally or sent by facsimile or email transmission during normal business hours on a business day, or as of the following business day if sent by prepaid overnight courier, to the parties hereto at the following addresses (or at such other addresses as shall be specified by any party hereto by notice to the other given in accordance with these provisions):

 

  

10

  

 

	
(a)  

	
if to Purchaser:

 

ARLZ CA Acquisition Corp.

c/o POZEN Inc.

1414 Raleigh Road, Suite 400

Chapel Hill, North Carolina 27517

 

Attention:                      Adrian Adams, Chief Executive Officer

Facsimile:                      (919) 490-5552

Email:                      ●

 

with a copy (which shall not constitute notice) to:

 

DLA Piper (Canada) LLP

Suite 1000, Livingston Place West

250 2nd St SW

Calgary, Alberta  T2P 0C1

 

Attention:                      Michael Der

Facsimile:                      (403) 213-4482

Email:                      michael.der@dlapiper.com

 

	
(b)  

	
if to the Shareholder:

 

[address information]

Attention:              ●

Facsimile:               ●

Email:                      ●

 

	
6.12  

	
Injunctive Relief

 

The parties hereto agree that irreparable harm would occur for which money damages would not be an adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties hereto shall be entitled to an injunction or injunctions and other equitable relief (including specific performance) to prevent breaches of this Agreement, any requirement for the securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief (including specific performance) hereby being waived.

 

	
6.13  

	
Expenses

 

Each of the parties shall pay its respective legal, financial advisory and accounting costs and expenses incurred in connection with the preparation, execution and delivery of this Agreement and all documents and instruments executed or prepared pursuant hereto and any other costs and expenses whatsoever and howsoever incurred.

 

  

11

  

 

	
6.14  

	
No Third Party Beneficiaries

 

This Agreement is not intended to, and shall not, confer any rights or remedies upon any person other than the parties to this Agreement.

 

	
6.15  

	
Language

 

The parties hereto expressly acknowledge that they have requested that this Agreement and all ancillary and related documents thereto be drafted in the English language only. Les parties aux présentes reconnaissent avoir exigé que la présente entente et tous les documents qui y sont accessoires soient rédigés en anglais seulement.

 

	
6.16  

	
Counterparts

 

This Agreement may be executed in counterparts, each of which shall be deemed to be an original but both of which together shall constitute one and the same instrument.  The parties hereto shall be entitled to rely upon delivery of an executed facsimile or similar executed electronic copy of this Agreement, and such facsimile or similar executed electronic copy shall be legally effective to create a valid and binding agreement between the parties hereto.

 

 

[REMAINDER OF PAGE LEFT BLANK.  SIGNATURE PAGE FOLLOWS.]

 

 

  

12

  

 

IN WITNESS WHEREOF the parties have executed this Agreement as of the date first written above.

 

	
ARLZ CA ACQUISITION CORP.

	
Per:

	  
	
Name:

	  
	
Title:

	  
	
I have authority to bind the Corporation

 

	  	
)

)

)

)

	  
	
Witness

	
)

)

	
[SHAREHOLDER]

 

  

13

  

 

SCHEDULE A

 

LOCKED-UP SECURITIES

 

	
 

Name of Shareholder

	
 

Address of Shareholder

	
Number of Tribute Shares

	
Number of Tribute Options

	
Number of Tribute Warrants

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