Document:

EX-10.32

 Exhibit 10.32 

 

			
	ESH HOSPITALITY HOLDINGS LLC	  	 ESH HOSPITALITY
 STRATEGIES HOLDINGS LLC

		
	EXTENDED STAY AMERICA, INC.	  	ESH HOSPITALITY, INC.

 SHARE DISTRIBUTION NOTICE 
 To: [Distributee] 
 THIS SHARE DISTRIBUTION NOTICE hereby notifies you as a Profit
Unit Member, that in connection with the liquidation of ESH Hospitality Holdings LLC (“Holdings”), you will receive the Distributed Shares as set forth below in respect of all of your outstanding [Class B][Class C] Units of each of
Holdings and ESH Hospitality Strategies Holdings LLC (the “Profit Units”). [This is in addition to the cash distribution, if any, as described on Exhibit A.] The Distributed Shares represent a publicly traded security
comprised of one share of common stock, par value $0.01 per share, of Extended Stay America, Inc., (the “Company”) and one share of Class B common stock, par value $0.01, of ESH Hospitality, Inc. (“ESH REIT”), which
are attached and traded together. The Distributed Shares shall be subject to the terms and conditions as set forth in the Restricted Paired Share Agreement by and between Holdings, the Company and ESH REIT, as attached hereto as Exhibit B.

 Capitalized terms that are not defined herein shall have the meaning ascribed to such terms in the Restricted Paired Share Agreement.

 In respect of your Profit Units, you shall receive Distributed Shares as follows: 

 

			
	 [CLASS B/CLASS C] PROFIT UNITS
	  	 DISTRIBUTED SHARES

	Grant Date	  	Distribution Date
	Number of Outstanding Profit Units	  	Total Number of Distributed Shares
	Number of Vested Outstanding Profit Units	  	Number of Unrestricted Shares
	Number of Time-Based Unvested Profit Units	  	Number of Restricted Shares
	Annual Vesting Date	  	Annual Vesting Date
	Number of Unvested Profit Units Scheduled to Vest on a Change of Control Transaction	  	Number of Accelerated Shares
	Annual Vesting Date	  	Annual Vesting Date

  

	1.	Unrestricted Shares. As set forth in the Restricted Paired Share Agreement, the Unrestricted Shares shall remain subject to the terms of any applicable
restrictions on transfer set forth on Exhibit A attached thereto (the “Transfer Restrictions”) and the share ownership guidelines of the Company and ESH REIT set forth on Exhibit B and Exhibit C attached thereto
(the “Share Ownership Guidelines”). The Unrestricted Shares shall otherwise shall be free from restrictions, and are generally not subject to forfeiture, provided, however, that in the event you experience a Termination of Service
for Cause during the period such Unrestricted Shares remain subject to the Transfer Restrictions, all Unrestricted Shares held by you as of such termination date shall immediately terminate and be forfeited to each of the Company and ESH REIT, as
applicable. 

  

	2.	Restricted Shares. As set forth in the Restricted Paired Share Agreement, the Restricted Shares shall be subject to the Transfer Restrictions and shall be
subject to forfeiture. Subject to your continued service with the Company, these Restricted Shares shall vest according to the following schedule: 

			
	 NUMBER OF RESTRICTED
SHARES
	  	 VESTING DATE

In the event you experience a Termination of Service, all of your Restricted Shares that have not yet vested shall immediately terminate
and be forfeited to each of the Company and ESH REIT, as applicable. For the avoidance of doubt, once the Restricted Shares have vested, they shall remain subject to the Transfer Restrictions and the Share Ownership Guidelines. 

 

	3.	Accelerated Shares. As set forth in the Restricted Paired Share Agreement, the Accelerated Shares shall remain subject to the terms of the Transfer Restrictions
and the Share Ownership Guidelines, and shall generally be subject to a holding requirement (i.e., they may not be sold or transferred) until the last Vesting Date set forth above. In the event you experience a Termination of Service for Cause prior
to the last Vesting Date, all Accelerated Shares held by you as of such termination date shall immediately terminate and be forfeited to each of the Company and ESH REIT, as applicable. 

 

	4.	Change in Control. In the event of a Change in Control (as defined in the Restricted Paired Share Agreement), the Restricted Shares shall immediately vest and
the Accelerated Shares shall no longer remain subject to the holding requirement described in the immediately preceding sentence. 

  

	5.	Election under Section 83(b). Your receipt of Restricted Shares pursuant to the Restricted Paired Share Agreement is conditioned upon your agreement to make
a timely election pursuant to Section 83(b) of the Code to be taxed on the Distribution Date as if your were then fully vested in all of the Restricted Shares in the form attached hereto as Exhibit C. You agree to timely notify the
Company and of such election and send the Company a copy thereof. You acknowledge that it is your sole responsibility and not the Company’s obligation, to file timely and properly the Code Section 83(b) election, although the Company will
assist you with the filing should you return your completed election to the Company by November [            ], 2014. You should consult your own personal tax advisor for more information
concerning tax treatment of your Restricted Shares. 

 Please contact
[            ] if you have any questions. 

 [EXHIBIT A 
 Immediately prior to the time that ESH Hospitality Holdings, LLC makes the distribution of Paired Shares to you, ESH Hospitality Holdings, LLC will make a separate distribution of cash to you in the
amount of $            . You may use such cash to satisfy your tax obligations arising in connection with the pre-IPO transactions, including as a result of distributions that are deemed to
be received by ESH Hospitality Holdings, LLC from ESH Hospitality, Inc. and allocated by ESH Hospitality Holdings, LLC to you, as a the holder of Profits Units.] 

 EXHIBIT B 
 Restricted Paired Share AgreementEX-4.1

 Exhibit 4.1 

Execution Copy 
  

 
 Twentieth Supplemental Indenture

 Dated as of November 12, 2013 

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 3.85% SENIOR NOTES	  	 	4	  
			
	        SECTION 201	  	Establishment and Designation of the 3.85% Senior Notes	  	 	4	  
			
	        SECTION 202	  	Form of the 3.85% Senior Notes	  	 	4	  
			
	        SECTION 203	  	Principal Amount of the 3.85% Senior Notes	  	 	4	  
			
	        SECTION 204	  	Interest Rates; Stated Maturity of the 3.85% Senior Notes	  	 	4	  
			
	        SECTION 205	  	No Sinking Fund	  	 	4	  
			
	        SECTION 206	  	Paying Agent and Bond Registrar	  	 	4	  
			
	        SECTION 207	  	Global Securities; Appointment of Depositary for Global Securities	  	 	5	  
			
	        SECTION 208	  	Other Terms of the 3.85% Senior Notes	  	 	5	  
		
	ARTICLE III     ESTABLISHMENT OF THE 5.125% SENIOR NOTES	  	 	5	  
			
	        SECTION 301	  	Establishment and Designation of the 5.125% Senior Notes	  	 	5	  
			
	        SECTION 302	  	Form of the 5.125% Senior Notes	  	 	5	  
			
	        SECTION 303	  	Principal Amount of the 5.125% Senior Notes	  	 	6	  
			
	        SECTION 304	  	Interest Rates; Stated Maturity of the 5.125% Senior Notes	  	 	6	  
			
	        SECTION 305	  	No Sinking Fund	  	 	6	  
			
	        SECTION 306	  	Paying Agent and Bond Registrar	  	 	6	  
			
	        SECTION 307	  	Global Securities; Appointment of Depositary for Global Securities	  	 	6	  
			
	        SECTION 308	  	Other Terms of the 5.125% Senior Notes	  	 	7	  
		
	ARTICLE IV     OPTIONAL REDEMPTION BY COMPANY	  	 	7	  
			
	        SECTION 401	  	Optional Redemption of 3.85% Senior Notes	  	 	7	  
			
	        SECTION 402	  	Optional Redemption of 5.125% Senior Notes	  	 	7	  
			
	        SECTION 403	  	Calculation of Redemption Price	  	 	8	  
			
	        SECTION 404	  	Notice of Redemption	  	 	8	  
		
	ARTICLE V      MISCELLANEOUS	  	 	8	  
			
	        SECTION 501	  	Application of Twentieth Supplemental Indenture	  	 	8	  
			
	        SECTION 502	  	Effective Date of Twentieth Supplemental Indenture	  	 	9	  
			
	        SECTION 503	  	Counterparts	  	 	9	  
			
	 EXHIBIT A
	  		  			
	EXHIBIT B	  		  			

  
 i 

 TWENTIETH SUPPLEMENTAL INDENTURE, dated as of November 12, 2013 (this “Twentieth
Supplemental Indenture”), by and between PACIFIC GAS AND ELECTRIC COMPANY, a corporation duly organized and existing under the laws of the State of California (the “Company” or the “Issuer”), and THE BANK OF NEW
YORK MELLON TRUST COMPANY, N.A., a national banking association organized and existing under the laws of the United States of America (formerly known as The Bank of New York Trust Company, N.A.), as Trustee under the Base Indenture (as
hereinafter defined) (the “Trustee”). 
 RECITALS OF THE COMPANY 

A. The Company and the Trustee are parties to that certain Amended and Restated Indenture, dated as of April 22, 2005 (the “Base
Indenture”), as supplemented by the First Supplemental Indenture, dated as of March 13, 2007 (the “First Supplemental Indenture”), the Second Supplemental Indenture, dated as of December 4, 2007 (the “Second
Supplemental Indenture”), the Third Supplemental Indenture, dated as of March 3, 2008 (the “Third Supplemental Indenture”), the Fourth Supplemental Indenture, dated as of October 21, 2008 (the “Fourth Supplemental
Indenture”), the Fifth Supplemental Indenture, dated as of November 18, 2008 (the “Fifth Supplemental Indenture”), the Sixth Supplemental Indenture, dated as of March 6, 2009 (the “Sixth Supplemental Indenture”),
the Seventh Supplemental Indenture, dated as of June 11, 2009 (the “Seventh Supplemental Indenture”), the Eighth Supplemental Indenture, dated as of November 18, 2009 (the “Eighth Supplemental Indenture”), the Ninth
Supplemental Indenture, dated as of April 1, 2010 (the “Ninth Supplemental Indenture”), the Tenth Supplemental Indenture, dated as of September 15, 2010 (the “Tenth Supplemental Indenture”), the Eleventh Supplemental
Indenture, dated as of October 12, 2010 (the “Eleventh Supplemental Indenture”), the Twelfth Supplement Indenture, dated as of November 18, 2010 (the “Twelfth Supplemental Indenture”), the Thirteenth Supplemental
Indenture, dated as of May 13, 2011 (the “Thirteenth Supplemental Indenture”), 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”), and this Twentieth Supplemental Indenture (this “Twentieth 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 and the Nineteenth 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 Twentieth 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 Twentieth Supplemental Indenture a valid agreement of the Company, in accordance
with its terms. 
 NOW, THEREFORE, the Company and the Trustee agree, for the benefit of each other and for the equal and proportionate
benefit of Holders of the 3.85% Senior Notes and the 5.125% 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 Twentieth Supplemental Indenture and shall have the meanings set forth in this Twentieth Supplemental Indenture only for purposes of this Twentieth Supplemental Indenture: 

“3.85% Senior Notes” has the meaning set forth in Section 201 hereto. 

“5.125% Senior Notes” has the meaning set forth in Section 301 hereto. 

“Adjusted Treasury Rate” means, with respect to any Redemption Date for any 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.
 
 “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 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 Senior Notes to be redeemed. 

  
 2 

 “Comparable Treasury Price” means, with respect to any Redemption Date
for any 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 3.85% Senior Notes may be redeemed pursuant to Section 401(a) or Section 401(b) hereto or at which 5.125% Senior Notes may be redeemed pursuant to Section 402(a) or Section 402(b) hereto, as applicable. 

“Reference Treasury Dealer” means (1) each of Barclays Capital Inc., Goldman, Sachs & Co., RBC Capital Markets,
LLC and Wells Fargo Securities, LLC, and their respective successors, unless any of them ceases to be a Primary Treasury Dealer, in which case the Company shall substitute another Primary Treasury Dealer; and (2) any other Primary Treasury
Dealer selected by the Company. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by
that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. For purposes of this definition only, “Business Day” means any day that is not a day on which banking
institutions in New York City are authorized or required by law or regulation to close. 
 “Remaining Scheduled
Payments” means, with respect to each of the Senior Notes that the Company is redeeming pursuant to Section 401 or Section 402 hereto, the remaining scheduled payments of principal and interest that would be due after the
applicable Redemption Date if such Senior Notes were not redeemed. However, if the Redemption Date is not a scheduled Interest Payment Date with respect to such Senior Notes, the amount of the next succeeding scheduled interest payment on such
Senior Notes will be reduced by the amount of interest accrued on such Senior Notes to the Redemption Date. 
 “Senior
Notes” means the 3.85% Senior Notes or the 5.125% Senior Notes, as the context may require. 
 “U.S. Government
Securities” means securities which are (a) direct obligations of the United States of America for the payment on which its full faith and credit is pledged or (b) obligations of a Person controlled or supervised by and acting as
an agency or instrumentality of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation of the United States of America, and which in the case of (a) and (b) are not callable or
redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Security or a specific payment of interest on or principal of any
such U.S. Government Security 

  
 3 

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

ESTABLISHMENT OF THE 3.85% SENIOR NOTES 

SECTION 201 Establishment and Designation of the 3.85% Senior Notes. 

Pursuant to the terms hereof and Section 3.01 of the Indenture, the Company hereby establishes a forty-first series of Bonds designated
as the “3.85% Senior Notes due November 15, 2023” (the “3.85% Senior Notes”). The 3.85% Senior Notes may be reopened, from time to time, for issuances of additional Bonds of such series, and any additional Bonds issued and
comprising 3.85% Senior Notes shall have identical terms as the 3.85% 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 3.85% Senior Notes. 

The 3.85% 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 3.85% Senior Notes. 

The 3.85% Senior Notes shall be issued in an initial aggregate principal amount of $300,000,000. 

SECTION 204 Interest Rates; Stated Maturity of the 3.85% Senior Notes. 

The 3.85% Senior Notes shall bear interest at the rate of 3.85% per annum and shall have a Stated Maturity of November 15, 2023.

 SECTION 205 No Sinking Fund. 

No sinking fund is provided for the 3.85% Senior Notes. 

SECTION 206 Paying Agent and Bond Registrar. 

The Trustee is hereby appointed as initial Paying Agent and initial Bond Registrar for the 3.85% Senior Notes. The Place of Payment of the
3.85% Senior Notes shall be the Corporate Trust Office of the Trustee. 

  
 4 

 SECTION 207 Global Securities; Appointment of Depositary for Global
Securities. 
 The 3.85% 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 3.85% Senior
Notes, and the 3.85% 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 3.85% Senior Notes. 

The other terms of the 3.85% Senior Notes shall be as expressly set forth herein and in Exhibit A. 

ARTICLE III 
 ESTABLISHMENT OF
THE 5.125% SENIOR NOTES 
 SECTION 301 Establishment and Designation of the 5.125% Senior Notes. 

Pursuant to the terms hereof and Section 3.01 of the Indenture, the Company hereby establishes a forty-second series of Bonds designated
as the “5.125% Senior Notes due November 15, 2043” (the “5.125% Senior Notes”). The 5.125% Senior Notes may be reopened, from time to time, for issuances of additional Bonds of such series, and any additional Bonds issued
and comprising 5.125% Senior Notes shall have identical terms as the 5.125% Senior Notes, except that the issue price, issue date and, in some cases, the first Interest Payment Date may differ. 

SECTION 302 Form of the 5.125% Senior Notes. 

The 5.125% Senior Notes shall be issued in the form of one or more Global Bonds in substantially the form set forth in Exhibit B
hereto. 

  
 5 

 SECTION 303 Principal Amount of the 5.125% Senior Notes. 

The 5.125% Senior Notes shall be issued in an initial aggregate principal amount of $500,000,000. 

SECTION 304 Interest Rates; Stated Maturity of the 5.125% Senior Notes. 

The 5.125% Senior Notes shall bear interest at the rate of 5.125% per annum and shall have a Stated Maturity of November 15, 2043.

 SECTION 305 No Sinking Fund. 

No sinking fund is provided for the 5.125% Senior Notes. 

SECTION 306 Paying Agent and Bond Registrar. 

The Trustee is hereby appointed as initial Paying Agent and initial Bond Registrar for the 5.125% Senior Notes. The Place of Payment of the
5.125% Senior Notes shall be the Corporate Trust Office of the Trustee. 
 SECTION 307 Global Securities; Appointment
of Depositary for Global Securities. 
 The 5.125% 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 DTC to act as the Depositary with respect to all 5.125% Senior Notes, and the 5.125% 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. 

  
 6 

 SECTION 308 Other Terms of the 5.125% Senior Notes. 

The other terms of the 5.125% Senior Notes shall be as expressly set forth herein and in Exhibit B. 

ARTICLE IV 
 OPTIONAL
REDEMPTION BY COMPANY 
 SECTION 401 Optional Redemption of 3.85% Senior Notes. 

(a) Subject to the terms and conditions of the Indenture, at any time prior to August 15, 2023, the 3.85% 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 3.85% Senior Notes to be redeemed; or 
 (ii) as determined by the Quotation Agent, the sum of the present
values of the Remaining Scheduled Payments of principal and interest on the 3.85% Senior Notes to be redeemed (not including any portion of payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual
basis at the Adjusted Treasury Rate, plus 20 basis points; 
 plus, in either of the above cases, accrued and unpaid interest thereon to but not including
the Redemption Date. 
 (b) Subject to the terms and conditions of the Indenture, at any time on or after August 15, 2023, the 3.85%
Senior Notes are redeemable at the option of the Company in whole or in part at 100% of the principal amount of the 3.85% 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 402 Optional Redemption of 5.125% Senior Notes. 

(a) Subject to the terms and conditions of the Indenture, at any time prior to May 15, 2043, the 5.125% 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 5.125% 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 5.125% Senior Notes to be redeemed (not including any portion of payments of 

  
 7 

 
interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis at the Adjusted Treasury Rate, plus 25 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 May 15, 2043, the 5.125% Senior Notes are redeemable at
the option of the Company in whole or in part at 100% of the principal amount of the 5.125% 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 403 Calculation of Redemption Price. The Company shall calculate the Redemption Price for the redemption
of any Senior Notes pursuant to Section 401 or Section 402, as applicable, 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 404 Notice of Redemption. Notice of any redemption pursuant to Section 401 or Section 402
shall be given to Holders of the 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 Senior Notes being redeemed. Notwithstanding Section 6.02 of the Indenture, if the
Company elects to redeem Senior Notes pursuant to Section 401 or Section 402 hereof, it shall give written notice to the Trustee of such Redemption Date and of the principal amount of 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). 
 ARTICLE V 

MISCELLANEOUS 

SECTION 501 Amendment to the Base Indenture. 

The second sentence of Section 11.02 of the Base Indenture is hereby amended to read as follows: 

“The Trustee shall transmit to the Holders, the Commission and each securities exchange upon which any Bonds are listed, and the Company
shall file with the Trustee (within thirty (30) days after filing with the Commission in the case of reports which pursuant to the Trust Indenture Act must be filed with the Commission and furnished to the Trustee) and cause to be transmitted
to Holders, such other information, reports and other documents, if any, at such times and in such manner, as shall be required by the Trust Indenture Act; provided, however, that the electronic filing with the Commission through the
Commission’s Electronic Data Gathering, Analysis and Retrieval System (or any 

  
 8 

 
successor system providing for free public access to such filings) shall satisfy the Company’s obligation to provide such reports, information and documents to the Trustee and the
Holders.” 
 SECTION 502 Application of Twentieth Supplemental Indenture. 

Except as provided in Section 501 hereof, each and every term and condition contained in this Twentieth Supplemental Indenture that
modifies, amends or supplements the terms and conditions of the Indenture shall apply only to the 3.85% Senior Notes and the 5.125% Senior Notes established hereby, 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 Twentieth Supplemental Indenture, the Indenture shall remain in full force and effect and is hereby ratified and confirmed. 

SECTION 503 Effective Date of Twentieth Supplemental Indenture. 

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

SECTION 504 Counterparts. 

This Twentieth 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. 

  
 9 

 IN WITNESS WHEREOF, the parties hereto have caused this Twentieth 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/ Melonee Young

	Name:	 	Melonee Young
	Title:	 	Vice President

 Signature page to Twentieth Supplemental Indenture 

 EXHIBIT A 

FORM OF 3.85% SENIOR NOTES DUE NOVEMBER 15, 2023 

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 :
 $300,000,000
	 	 ORIGINAL ISSUE DATE:
 November 12,
2013
	 	INTEREST RATE: 3.85% per annum
			
	 MATURITY DATE:
  

November 15, 2023
	 	 INTEREST PAYMENT DATES:
  

May 15 and November 15, commencing May 15, 2014
	 	 THIS SENIOR NOTE IS A:
  

x Global Book-Entry Bond

 ̈ Certificated Bond

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

  
 A-1 

 PACIFIC GAS AND ELECTRIC COMPANY 

3.85% SENIOR NOTES DUE NOVEMBER 15, 2023 

(Fixed Rate) 
  

			
	No. R-1	 	Principal Amount: $300,000,000
	CUSIP No: 694308 HE0	 	

 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 3.85%
Senior Note due November 15, 2023 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 May 15, 2014 at the rate of 3.85% 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 3.85% Senior Note due November 15, 2023 (this “Senior Note,” and together with all other 3.85% Senior Notes
due November 15, 2023, 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 November 12, 2013 or from the most recent Interest Payment Date to which interest has been paid or duly
provided for. In the event that any date on which interest is payable on this Senior Note (other than the Maturity Date) is not a Business Day then payment of the interest payable on such date will be made on the next succeeding day that is a
Business Day (and without any interest or payment in respect of any such delay) with the same force and effect as if made on the 

  
 A-2 

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

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SENIOR NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Senior Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-3 

 IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed. 
 Dated: November     , 2013 

 

			
	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-First Series referred to in the within-mentioned
Indenture. 
 Dated: November     , 2013 

 

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

		 	Authorized Signatory

  
 A-5 

 Reverse of Senior Note 

This 3.85% Senior Note due November 15, 2023 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 Twentieth Supplemental Indenture, dated as of November 12, 2013
(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-first series designated as the 3.85% Senior Note due November 15, 2023 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 August 15, 2023 at a Redemption Price equal to the greater of: 

(i) 100% of the principal amount of the Senior Notes to be redeemed; or 

(ii) as determined by the Quotation Agent, the sum of the present values of the Remaining Scheduled Payments of principal and
interest on the Senior Notes to be redeemed (not including any portion of payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis at the Adjusted Treasury Rate, plus 20 basis points, 

plus, in either of the above cases, accrued and unpaid interest thereon to but not including the Redemption Date; and (b) at any time on or after
August 15, 2023 at 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest thereon to but not including the Redemption Date. 

Interest installments whose Stated Maturity is on or prior to such Redemption Date will be payable to Holders of such Senior Notes, or one or
more Predecessor Bonds, of record at the close of business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture. 

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

  
 A-6 

 
the Holders of the Senior Notes being redeemed. If money sufficient to pay the Redemption Price of all Senior Notes (or portions thereof) to be redeemed on the Redemption Date is deposited with
the Paying Agent or the Trustee on or prior to the Redemption Date, from and after such Redemption Date such Senior Notes or portions thereof shall cease to bear interest. Senior Notes in denominations larger than $1,000 in principal amount may be
redeemed in part but only in integral multiples of $1,000. 
 In the event of redemption of this Senior Note in part only, a new Senior Note
or Senior Notes of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof. 

As provided in the Indenture and subject to certain limitations therein set forth, this Senior Note or any portion of the principal amount
hereof will be deemed to have been paid for all purposes of the Indenture and to be no longer Outstanding thereunder, and the Company’s entire indebtedness in respect thereof will be satisfied and discharged, if there has been irrevocably
deposited with the Trustee or any Paying Agent (other than the Company), in trust, money in an amount which will be sufficient and/or Eligible Obligations, the principal of and interest on which when due, without regard to any reinvestment thereof,
will provide moneys which, together with money, if any, deposited with or held by the Trustee or such Paying Agent, will be sufficient to pay when due the principal of and premium, if any, and interest on this Senior Note when due. 

If an Event of Default shall occur and be continuing, the Trustee or the Holders of not less than 33% in aggregate principal amount of the
Outstanding Bonds, considered as one class, may declare the principal amount of all Bonds then Outstanding to be due and payable immediately by notice in writing to the Company (and to the Trustee if given by Holders); provided, however, that with
respect to certain Events of Default relating to bankruptcy, insolvency and similar events, the principal amount of all Bonds then Outstanding shall be due and payable immediately without further action by the Trustee or the Holders. 

The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee to enter into one or more supplemental
indentures for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Bonds at the
time Outstanding, considered as one class; provided, however, that if there shall be Bonds of more than one series Outstanding under the Indenture and if a proposed supplemental indenture shall directly affect the rights of the Holders of Bonds of
one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Bonds of all series so directly affected, considered as one class, shall be required; and provided,
further, that if the Bonds of any series shall have been issued in more than one Tranche and if a proposed supplemental indenture shall directly affect the rights of the Holders of Bonds of one or more, but less than all, of such Tranches, then the
consent only of the Holders of a majority in aggregate principal amount of the Outstanding Bonds of all Tranches so directly affected, considered as one class, shall be required; and provided, further, that the Indenture permits the Company and the
Trustee to enter into one or more supplemental indentures for certain purposes without the consent of any Holders of Bonds. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of Bonds,

  
 A-7 

 
on behalf of the Holders of all such Bonds, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Senior Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Senior Note and of any Senior Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Senior Note. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Senior Note shall
not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a
continuing Event of Default, the Holders of at least 33% in aggregate principal amount of the Bonds at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and
offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of at least a majority in aggregate principal amount of Bonds at the time Outstanding a direction inconsistent with such written request, and shall
have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Senior Note for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 
 No reference herein to the
Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Senior Note at the times, place
and rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Senior Note is registrable in the Bond Register, upon surrender of this Senior Note for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on
this Senior Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company, the Trustee or the Bond Registrar, as the case may be, duly executed by the Holder hereof or such Holder’s
attorney duly authorized in writing, and thereupon one or more new Senior Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Senior Notes are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth, Senior Notes are exchangeable for a like aggregate principal amount of Senior Notes and of like tenor of a different authorized denomination, as requested by the Holder
surrendering the same. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 The Company shall not be
required to execute or to provide for the registration of the transfer of or the exchange of (A) any Senior Note of this series during a period of 15 days 

  
 A-8 

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

As provided in the Indenture, no recourse shall be had for the payment of the principal of, premium, if any, or interest with respect to this
Senior Note, or any part thereof, or for any claim based hereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, against any incorporator, shareholder,
officer or director, as such, past, present or future, of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional
provision, statute or rule of law or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture and all the Bonds are solely corporate obligations and that any such personal liability is
hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of this Senior Note. 

All terms used in this Senior Note which are not defined herein shall have the meanings assigned to them in the Indenture. 

  
 A-9 

 ASSIGNMENT FORM 

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

 
  

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

 
  

 
  

 
  

 
 (Print or type assignee’s name, address and zip
code) 
  

			
	 and irrevocably appoint
	 	  

 to transfer this Senior Note on the books of the Company. The agent may substitute another to act for him. 

 
  

Date:                      

 

					
		  	Your signature:	 	  

		  	(Sign exactly as your name appears on the face of this Senior Note)

					
			
		  	Tax Identification No.:	 	  

		
		  	SIGNATURE GUARANTEE:

					
			
		  	  
	 	
		
		  	Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Bond Registrar, which requirements include membership or participation in the Securities Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Bond Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended.

  
 A-10 

 EXHIBIT B 

FORM OF 5.125% SENIOR NOTES DUE NOVEMBER 15, 2043 

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 :
 $500,000,000
	 	 ORIGINAL ISSUE DATE:
 November 12,
2013
	 	INTEREST RATE: 5.125% per annum
			
	 MATURITY DATE:
  

November 15, 2043
	 	 INTEREST PAYMENT DATES:
  

May 15 and November 15, commencing May 15, 2014
	 	 THIS SENIOR NOTE IS A:
  

x Global Book-Entry Bond

 ̈ Certificated Bond

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

  
 B-1 

 PACIFIC GAS AND ELECTRIC COMPANY 

5.125% SENIOR NOTES DUE NOVEMBER 15, 2043 

(Fixed Rate) 
  

			
	No. R-1	 	Principal Amount: $500,000,000
	CUSIP No: 694308 HF7	 	

 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 5.125%
Senior Note due November 15, 2043 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 May 15, 2014 at the rate of 5.125% 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 5.125% Senior Note due November 15, 2043 (this “Senior Note,” and together with all other 5.125% Senior
Notes due November 15, 2043, 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 November 12, 2013 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 

  
 B-2 

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

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SENIOR NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Senior Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 B-3 

 IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed. 
 Dated: November    , 2013 

 

			
	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-Second Series referred to in the within-mentioned
Indenture. 
 Dated: November     , 2013 

 

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

		 	Authorized Signatory

  
 B-5 

 Reverse of Senior Note 

This 5.125% Senior Note due November 15, 2043 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 Twentieth Supplemental Indenture, dated as of November 12, 2013
(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-second series designated as the 5.125% Senior Note due November 15, 2043 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 May 15, 2043 at a Redemption Price equal to the greater of: 

(i) 100% of the principal amount of the Senior Notes to be redeemed; or 

(ii) as determined by the Quotation Agent, the sum of the present values of the Remaining Scheduled Payments of principal and
interest on the Senior Notes to be redeemed (not including any portion of payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis at the Adjusted Treasury Rate, plus 25 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
May 15, 2043 at 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest thereon to but not including the Redemption Date. 

Interest installments whose Stated Maturity is on or prior to such Redemption Date will be payable to Holders of such Senior Notes, or one or
more Predecessor Bonds, of record at the close of business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture. 

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

  
 B-6 

 
the Holders of the Senior Notes being redeemed. If money sufficient to pay the Redemption Price of all Senior Notes (or portions thereof) to be redeemed on the Redemption Date is deposited with
the Paying Agent or the Trustee on or prior to the Redemption Date, from and after such Redemption Date such Senior Notes or portions thereof shall cease to bear interest. Senior Notes in denominations larger than $1,000 in principal amount may be
redeemed in part but only in integral multiples of $1,000. 
 In the event of redemption of this Senior Note in part only, a new Senior Note
or Senior Notes of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof. 

As provided in the Indenture and subject to certain limitations therein set forth, this Senior Note or any portion of the principal amount
hereof will be deemed to have been paid for all purposes of the Indenture and to be no longer Outstanding thereunder, and the Company’s entire indebtedness in respect thereof will be satisfied and discharged, if there has been irrevocably
deposited with the Trustee or any Paying Agent (other than the Company), in trust, money in an amount which will be sufficient and/or Eligible Obligations, the principal of and interest on which when due, without regard to any reinvestment thereof,
will provide moneys which, together with money, if any, deposited with or held by the Trustee or such Paying Agent, will be sufficient to pay when due the principal of and premium, if any, and interest on this Senior Note when due. 

If an Event of Default shall occur and be continuing, the Trustee or the Holders of not less than 33% in aggregate principal amount of the
Outstanding Bonds, considered as one class, may declare the principal amount of all Bonds then Outstanding to be due and payable immediately by notice in writing to the Company (and to the Trustee if given by Holders); provided, however, that with
respect to certain Events of Default relating to bankruptcy, insolvency and similar events, the principal amount of all Bonds then Outstanding shall be due and payable immediately without further action by the Trustee or the Holders. 

The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee to enter into one or more supplemental
indentures for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Bonds at the
time Outstanding, considered as one class; provided, however, that if there shall be Bonds of more than one series Outstanding under the Indenture and if a proposed supplemental indenture shall directly affect the rights of the Holders of Bonds of
one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Bonds of all series so directly affected, considered as one class, shall be required; and provided,
further, that if the Bonds of any series shall have been issued in more than one Tranche and if a proposed supplemental indenture shall directly affect the rights of the Holders of Bonds of one or more, but less than all, of such Tranches, then the
consent only of the Holders of a majority in aggregate principal amount of the Outstanding Bonds of all Tranches so directly affected, considered as one class, shall be required; and provided, further, that the Indenture permits the Company and the
Trustee to enter into one or more supplemental indentures for certain purposes without the consent of any Holders of Bonds. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of Bonds,

  
 B-7 

 
on behalf of the Holders of all such Bonds, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Senior Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Senior Note and of any Senior Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Senior Note. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Senior Note shall
not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a
continuing Event of Default, the Holders of at least 33% in aggregate principal amount of the Bonds at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and
offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of at least a majority in aggregate principal amount of Bonds at the time Outstanding a direction inconsistent with such written request, and shall
have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Senior Note for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 
 No reference herein to the
Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Senior Note at the times, place
and rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Senior Note is registrable in the Bond Register, upon surrender of this Senior Note for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on
this Senior Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company, the Trustee or the Bond Registrar, as the case may be, duly executed by the Holder hereof or such Holder’s
attorney duly authorized in writing, and thereupon one or more new Senior Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Senior Notes are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth, Senior Notes are exchangeable for a like aggregate principal amount of Senior Notes and of like tenor of a different authorized denomination, as requested by the Holder
surrendering the same. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 The Company shall not be
required to execute or to provide for the registration of the transfer of or the exchange of (A) any Senior Note of this series during a period of 15 days 

  
 B-8 

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

As provided in the Indenture, no recourse shall be had for the payment of the principal of, premium, if any, or interest with respect to this
Senior Note, or any part thereof, or for any claim based hereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, against any incorporator, shareholder,
officer or director, as such, past, present or future, of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional
provision, statute or rule of law or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture and all the Bonds are solely corporate obligations and that any such personal liability is
hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of this Senior Note. 

All terms used in this Senior Note which are not defined herein shall have the meanings assigned to them in the Indenture. 

  
 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-10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}]]