Document:

Exhibit 10.1

    

    

    

    

    

    

      December [_], 2019

       

      

      PG&E Corporation

      77 Beale Street

      P.O. Box 770000

      San Francisco, California 94177

      

      

      Re: Chapter 11 Plan Backstop Commitment Letter

      

      

      Ladies and Gentlemen:

      

      

      Reference is hereby made to the chapter 11 bankruptcy cases, lead case no. 19-30088 (the “Chapter 11 Cases”), currently pending before
        the United States Bankruptcy Court for the Northern District of California (the “Bankruptcy Court”), in which PG&E Corporation (“PG&E”
        or the “Company”) and Pacific Gas and Electric Company (the “Utility” and together with PG&E, the “Debtors”) are debtors in possession.  Reference is further made to the Chapter 11 plan of reorganization that includes Abrams Capital Management, L.P. (or certain funds and accounts it manages) (“Abrams” or a “Shareholder Proponent”) and Knighthead Capital Management, LLC (or certain funds and accounts it manages) (“Knighthead” or a “Shareholder Proponent”) as plan proponents with the Debtors, filed on December 12, 2019 at Dkt. No. 19-30088, that
        is in a form acceptable to each of Knighthead, Abrams, and the Debtors, and that incorporates the modifications provided for in the Tort Claimants RSA (as defined herein) (as may be amended, modified or
        otherwise changed in accordance with this Backstop Commitment Letter, the “Plan”) to implement the terms and conditions of the reorganization of the Debtors as provided therein. 
        Capitalized terms used in this backstop commitment letter (this “Backstop Commitment Letter”) or in the exhibits hereto but not otherwise defined shall have the meanings ascribed to them
        in the Plan.  The word “including” means “including, without limitation”.

      

      

      In order to facilitate the Debtors’ emergence from Chapter 11, pursuant to this Backstop Commitment Letter, and subject to the terms, conditions and limitations set forth herein and in
        consideration for the Backstop Commitment Premium, the undersigned Backstop Party (the “Backstop Party”) is willing to purchase, on the Effective Date, an amount of New HoldCo Common Stock
        and Backstop TBM Trust Interests (as defined herein) up to its Backstop Commitment Amount (as defined herein) at the Backstop Price (as defined herein).

      

      

      In addition, PG&E has separately solicited and negotiated and expects to enter into substantially similar backstop commitment letters (“Other

          Backstop Commitment Letters”) with other funding sources (“Other Backstop Parties”) pursuant to which such Other Backstop Parties will commit to purchase New HoldCo Common Stock
        and Backstop TBM Trust Interests on the Effective Date (such commitments, “Other Backstop Commitments,” and together with this Backstop Commitment, the “Aggregate Backstop Commitments”).

      

      

      1.          Equity Offerings.

      

      

      a.          Structure.  The Plan, among other things, shall provide that, on the Effective Date, Reorganized HoldCo shall issue shares of New HoldCo Common Stock for up to
        $12 billion of aggregate net cash proceeds to Reorganized Holdco (the “Equity Offering Cap”).  PG&E shall structure the offering of any such shares of New HoldCo Common Stock (or
        rights pursuant to which any such shares may be issued or other securities convertible into any such shares) (the “Equity Offering”) in accordance with the terms of this Section 1,
        including the following parameters:

      

      

      (i)          if the Implied P/E Multiple with respect to such Equity Offering equals or exceeds the greater of (A) 13.5 and (B) 13.5 times one plus any percentage change of the Applicable Utility Index Multiple (as defined herein) as measured on November 1, 2019 and the Determination Date (as defined herein), then PG&E shall be permitted to conduct
        the Equity Offering in any form of primary equity offering (including any public offering, regular way offering, at-the-market equity offering, block trade, modified Dutch auction or other auction pricing mechanism, rights offering, private
        placement, “PIPE” sale or other registered or  unregistered transaction) upon such terms and conditions as may be determined by the Board (a “Permitted Equity Offering”), including such
        terms and conditions that are reasonably advisable (based on the advice of the Debtors’ tax advisors after consultation with Jones Day) in order to avoid an “ownership change” within the meaning of Section 382 and the Treasury Regulations
        promulgated thereunder or to otherwise preserve the ability of the Debtors to utilize their net operating loss carryforwards and other tax attributes (collectively, the “NOLs”);

      

      

      
        
          

      

      
      

      

      (ii)          if the Implied P/E Multiple with respect to the Equity Offering is less than the Implied P/E Multiple required for a Permitted Equity Offering in Section 1(a)(i) above, but equals or
        exceeds the lesser of (A) 12 and (B) 12 times one plus the percentage change of the Applicable Utility Index Multiple as measured on November 1, 2019 and the
        Determination Date (the “Rights Offering Threshold Multiple”), then PG&E shall structure the Equity Offering such that (Y) at least 80%, determined assuming the exercise in full of all
        of the Rights, of the aggregate cash proceeds of the Equity Offering is to be raised through the exercise of purchase rights (the “Rights”) distributed to holders of PG&E common stock
        (“Existing Shareholders”) as of a record date to be determined by the Board (the “Record Date”) to purchase shares of New HoldCo
        Common Stock for cash at a price set forth below (the “Rights Offering”) and (Z) the balance of the aggregate cash proceeds of the Equity Offering is to be raised through any other form of
        primary equity offering (including any public offering, regular way offering, at-the-market equity offering, block trade, modified Dutch auction or other auction pricing mechanism, private placement, “PIPE” sale or other registered or  unregistered
        transaction), provided, that entities holding a majority of the Aggregate Backstop Commitments have not objected to the identity of the purchasers and ultimate purchasers, as applicable, in such Equity Offering, to the extent such
        Equity Offering is not a broadly syndicated underwritten public offering, within three business days of receipt of notice from PG&E;

      

      

      (iii)          in both of paragraphs (i) and (ii) above, Reorganized Holdco may also raise equity capital (subject to the Equity Offering Cap) by calling on the Backstop Commitments (after giving
        effect to any reduction of the Backstop Commitments in connection with a Permitted Equity Offering or a Rights Offering, as applicable); and

      

      

      (iv)          if the Implied P/E Multiple with respect to the Equity Offering would be less than the Rights Offering Threshold Multiple or if for any other reason Reorganized Holdco is unable to
        execute an Equity Offering, then Reorganized Holdco shall not utilize either a Permitted Equity Offering or a Rights Offering and shall issue shares at the Backstop Price pursuant to the Backstop Commitments up to the amount of the Equity Offering
        Cap less the proceeds of any Additional Capital Sources.

      

      

      “Implied P/E Multiple” means, with respect to any Equity Offering, (A) the price per share at which shares of New Holdco Common Stock are
        offered to be sold in such Equity Offering (which price (x) in the case of an Equity Offering of rights, shall be the exercise price to acquire a share of New HoldCo Common Stock pursuant to such rights or (y) in the case of an Equity Offering of a
        security convertible into or exchangeable for shares of New HoldCo Common Stock, shall be the per share price implied by the conversion ratio used to convert the principal amount, liquidation preference or other face amount of such security into a
        number of shares of New HoldCo Common Stock) (the “Per Share Price”), times (B) the number of fully diluted shares of PG&E (calculated using
        the treasury stock method) that will be outstanding as of the Effective Date (assuming such Equity Offering and all other equity transactions contemplated by the Plan are consummated and settled on the Effective Date), divided by (C) the Normalized Estimated Net Income as of the Determination Date.

      

      

      
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      b.          Additional Capital Sources.  PG&E shall conduct the Equity Offering in accordance with the Plan.  The net cash proceeds to PG&E of the Equity Offering shall not
        exceed the Equity Offering Cap, less the sum of (i) the principal amount of debt that is issued by PG&E in excess of $7 billion in connection with the Plan; (ii) the proceeds of any preferred stock
        issued by the Utility (excluding any Utility Preferred Interests that are Reinstated pursuant to the Plan); (iii) the proceeds of any third-party transactions based upon or related to the utilization or monetization of any (x) NOLs or (y) tax
        deductions, in each case arising from the payment of Wildfire Claims that are not otherwise utilized in the Plan (a “Tax Benefits Monetization Transaction”); and (iv) the principal amount
        of any other debt that is issued or reinstated by the Utility and its subsidiaries, excluding any Tax Benefits Monetization Transaction, in excess of $27.35 billion in connection with the Plan (the “Additional Capital Sources”).  During the term of the Backstop Commitment Letter, PG&E shall not issue any senior equity securities.  Backstop Parties who are Shareholder Proponents agree to use commercially reasonable efforts
        to assist the Debtors to facilitate a Tax Benefits Monetization Transaction no later than May 31, 2020.

      

      

      c.          Rights Offering.  With respect to the Rights Offering:

      

      

      (i)          the Rights will have a fixed exercise price equal to (a) the Rights Offering Threshold Multiple times (b) the Normalized Estimated Net Income as
        of the Determination Date, divided by (c) the number of fully diluted shares of PG&E (calculated using the treasury stock method) that will be outstanding as of the Effective Date (assuming all equity
        is raised by the exercise of all Rights);

      

      

      (ii)          the Rights shall be transferable;

      

      

      (iii)          the Board shall provide that holders of Rights who fully exercise their Rights will have over-subscription privileges to subscribe for additional shares of New HoldCo Common Stock to
        the extent other Rights are not exercised, with over-subscription procedures (including pro-ration rules) determined by the Board;

      

      

      (iv)          the Board may provide that the Rights or Rights Offering include such terms and conditions that are reasonably advisable (based on the advice of the Debtors’ tax advisors after
        consultation with Jones Day) in order to avoid an “ownership change” within the meaning of Section 382 and the Treasury Regulations promulgated thereunder or to otherwise preserve the ability of the Debtors to utilize their NOLs, including
        limitations on the amount of Rights that are exercisable by holders who, together with persons who have a formal or informal understanding with such holders to make a coordinated acquisition of stock within the meaning of Treasury Regulations
        1.382-3(a) (an “Entity”), beneficially own in excess of a specified percentage (e.g., 4.75%) of the outstanding shares of PG&E common stock, subject to exceptions to be determined by
        the Board; provided, however, that such terms and conditions shall not restrict existing holders of PG&E common stock (including any Entity) from acquiring shares that do not increase their aggregate beneficial
        ownership to more than 4.75% of the outstanding shares of PG&E common stock immediately after the completion of the Rights Offering; and

      

      

      (v)          the Rights will have such other terms and conditions as may be determined by the Board, as long as such other terms and conditions  are consistent with the Plan and with every other
        provision of this Backstop Commitment Letter.

      

      

      d.          Subordinated Claims.  To the extent provided in the Plan, the Debtors may issue Rights or New HoldCo Common Stock to holders of Claims against a Debtor that are subject
        to subordination pursuant to section 510(b) of the Bankruptcy Code and that arise from or are related to any equity security of such Debtor.

      

      

      
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      e.          Documentation.  The definitive documentation for any Permitted Equity Offering or any Rights Offering shall be consistent with the Plan.  For the avoidance of doubt, the
        organizational documents of the Reorganized HoldCo (including its charter) may include limitations and other terms that are reasonably advisable (based on the advice of the Debtors’ tax advisors after consultation with Jones Day) in order to avoid
        an “ownership change” within the meaning of Section 382 and the Treasury Regulations promulgated thereunder or to otherwise preserve the ability of the Debtors to utilize their NOLs; provided, however, that the
        organizational documents shall not be modified or amended in a manner that would restrict existing holders of PG&E common stock (including any Entity) from acquiring shares that do not increase their aggregate beneficial ownership to more than
        4.75% of the outstanding shares of PG&E common stock immediately after the completion of the Rights Offering; provided further, however, that if the Backstop Commitments will be drawn and as a result the
        Backstop Party’s and its affiliates’ aggregate beneficial ownership of shares of PG&E common stock would exceed 4.75% of the outstanding shares of PG&E common stock, then (i) the Debtors may reduce the amount of the Backstop Party’s
        Backstop Commitment in order to eliminate such excess and (ii) if the Debtors do not make such reduction, the Debtors may not impose any restriction on the transfer of any shares held by the Backstop Party or its affiliates (determined as of the
        date the transactions contemplated by this Backstop Commitment Letter and the Plan are consummated) pursuant to the terms of PG&E’s organizational documents.  At least 30 days prior to the filing of the Plan Supplement, PG&E shall give the
        Backstop Party drafts of the subscription form and any other documentation to be completed by the Backstop Party in connection with funding the Backstop Commitment for its review and comment.  The Plan filed by the Debtors shall include Abrams and
        Knighthead as plan proponents with the Debtors and be in a form reasonably acceptable to Abrams, Knighthead, and the Debtors and shall incorporate the modifications provided for in the Tort Claimants RSA, and such Plan shall otherwise provide for
        substantially the same classification and treatment, including releases, of all Claims (other than Holdco Other Wildfire Claims and Utility Other Wildfire Claims) as provided in the Debtors’ Joint Chapter 11 Plan of Reorganization filed with the
        Bankruptcy Court on November 4, 2019.

      

      

      f.          Use of Proceeds.  The Debtors shall only use the proceeds of an Equity Offering to fund obligations to holders of Wildfire Claims under the Plan.

      

      

      g.          Notices.  Promptly, and in any event, within two days of the Board’s determination of final pricing of any Equity Offering, PG&E shall publicly disclose the form,
        structure, amount and terms of such Equity Offering, including the Implied P/E Multiple for such Equity Offering.  PG&E shall give the Backstop Party, as soon as reasonably practicable, but in no event later than five business days prior to the
        Effective Date, (i) written notification setting forth (A) the amount to be funded pursuant to the Backstop Commitment, (B) an estimate of the Backstop Price and (C) the targeted Effective Date and (ii) a subscription form to be completed by the
        Backstop Party, or other instructions, to facilitate the Backstop Party’s subscription for the New HoldCo Common Stock.

      

      

      h.          Cooperation.  As reasonably requested by the Debtors, the Backstop Party shall reasonably cooperate with the Debtors with respect to providing information relevant to
        the preservation of the Debtors’ Tax Attributes, including information regarding (i) the number of shares of PG&E common stock owned by such party (on a holder-by-holder basis) prior to the Rights Offering, (ii) the amount of Rights exercised
        and shares of New HoldCo Common Stock purchased pursuant to the Backstop Commitment by such persons, and (iii) the amount of Backstop Party’s Shares (as defined below) at any time prior to the Allocation Date upon at least three business days’
        notice to the Backstop Party.

      

      

      2.          Backstop.

      

      

      a.          Subject to the terms and conditions set forth herein and to the payment and provision of premium to the Backstop Party as provided in Section 2(c), the Backstop Party, solely on behalf
        of itself, hereby commits to purchase on the Effective Date at the Backstop Price (the “Backstop Commitment”) and up to the dollar amounts set forth on Exhibit A hereto as
        may be adjusted pursuant to the terms of this Agreement (the “Backstop Commitment Amount”), (i) an amount of shares of New HoldCo Common Stock and (ii) if the Backstop Commitment is drawn
        and a Tax Benefits Monetization Transaction is not expected to occur on the Effective Date, a pro rata share (calculated as a percentage equal to the Backstop Commitment Amount divided by the Aggregate Backstop Commitments) of Backstop TBM Trust Interests (as defined herein), provided, however, that the Backstop
        Commitment Amount shall be reduced as necessary to ensure that the aggregate beneficial ownership of the Backstop Party does not exceed 8.99% of the outstanding voting shares of PG&E immediately after the completion of the Rights Offering.  For
        the avoidance of doubt, in the event the Backstop Commitment is drawn and a Tax Benefits Monetization Transaction is not expected to occur on the Effective Date, the Backstop TBM Trust Interests shall be issued to the Backstop Party as provided in
        the foregoing clause (ii) for no additional consideration (other than payment of the Backstop Price).

      

      

      
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      b.          PG&E and the Backstop Party shall cooperate in good faith to prepare and deliver a subscription agreement and any other documentation necessary to effect the private placement of
        New HoldCo Common Stock to the Backstop Party in accordance with the terms of this Backstop Commitment Letter, which documentation shall be consistent with this Backstop Commitment Letter and the Plan.

      

      

      c.          The Debtors agree to pay the Backstop Party the Backstop Commitment Premium to the extent provided on Exhibit A and to reimburse on a regular basis the Backstop Party
        for the reasonable fees and expenses of Jones Day and a financial advisor incurred prior to termination of this Backstop Commitment Letter in connection with the Plan, the Backstop Commitment Letter, and the transactions contemplated herein,
        provided that such reimbursement shall not exceed $17 million for Jones Day in the aggregate and $19 million for the financial advisor in the aggregate.  The provisions for the payment of the Backstop Commitment Premium and the other provisions
        provided herein are an integral part of the transactions contemplated by this Backstop Commitment Letter and without these provisions the Backstop Party would not have entered into this Backstop Commitment Letter, and the Backstop Commitment
        Premium shall, pursuant to an order of the Bankruptcy Court approving this Backstop Commitment Letter, constitute allowed administrative expenses of the Debtors’ estates under sections 503(b) and 507 of the Bankruptcy Code.

      

      

      d.          (1)  Reorganized Holdco will enter into a registration rights agreement with the Backstop Party in respect of the shares of New HoldCo Common Stock that the Backstop Party may acquire
        in accordance with the Plan and this Backstop Commitment Letter (“Registrable Shares”), which registration rights agreement shall (i) provide for the filing by Reorganized Holdco of a
        shelf registration statement (whether on Form S-3 or on Form S-1) with the Securities and Exchange Commission (the “SEC”) covering the resale of Registrable Shares as soon following the
        Effective Date as is permissible under applicable rules and regulations of the SEC, and provide for the requirements to (x) use reasonable best efforts to cause such shelf registration statement to become effective on the earliest date practicable
        and (y) cause such registration statement to become effective in all events not later than 20 calendar days after the Effective Date, (ii) provide that PG&E’s obligation to maintain an effective shelf registration statement under the
        registration rights agreement will terminate no earlier than the time that Registrable Shares issued to the Backstop Party may be sold by the Backstop Party in a single transaction without limitation under Rule 144 of the Securities Act (as defined
        below), (iii) treat the Backstop Party no less favorably than the Other Backstop Parties with respect to its Registrable Shares and (iv) otherwise be in form and substance reasonably acceptable to the holders of a majority of the Aggregate Backstop
        Commitments.

      

      

      (2)  Upon the written request of the Backstop Party following the Effective Date, the Company shall use commercially reasonable efforts to obtain a Rule 144A CUSIP for the Backstop TBM Trust
        Interests. Upon the written request of Backstop Parties holding a majority of the Backstop TBM Trust Interests following the Effective Date, the Company shall use commercially reasonable efforts to (a) file a shelf registration statement (whether
        on Form S-3 or on Form S-1) with the SEC covering the resale of Backstop TBM Trust Interests as soon as practicable following such request and (b) cause such registration statement to be declared effective by the SEC.

      

      

      
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      e.          To the extent that a Tax Benefits Monetization Transaction is not expected to occur on the Effective Date, if the Backstop Commitment is drawn, no later than five (5) business days
        prior to the Effective Date, the Debtors shall form the Backstop TBM Trust (as defined herein) pursuant to the Backstop TBM Trust Agreement (as defined herein).  The Backstop TBM Trust shall enter into the Tax Receivables Agreement (as defined
        herein) with the Utility.

      

      

      f.          To the extent that PG&E agrees to terms that are more favorable to an Other Backstop Party in an Other Backstop Commitment Letter (excluding terms that apply proportionately
        relative to the size of such Other Backstop Party’s backstop commitment), PG&E shall provide notice of such terms to the Backstop Party no later than 10 days after the Allocation Date and, absent a written objection from the Backstop Party no
        later than 10 days after the date of such notice, such terms shall be deemed without further action to be incorporated into this Backstop Commitment Letter.

      

      

      3.          Backstop Party Representations.  The Backstop Party hereby represents and warrants, solely as to itself, that (a) it has all limited partnership, corporate or other
        power and authority necessary to execute, deliver and perform this Backstop Commitment Letter, (b) the execution, delivery and performance of this Backstop Commitment Letter by it has been duly and validly authorized and approved by all necessary
        limited partnership, corporate or other organizational action by it, (c) this Backstop Commitment Letter has been duly and validly executed and delivered by it and, assuming due execution and delivery by the other parties hereto, constitutes a
        valid and legally binding obligation of it, enforceable against it in accordance with the terms of this Backstop Commitment Letter, (d) the execution, delivery and performance by the Backstop Party of this Backstop Commitment Letter do not
        (i) violate the organizational documents of the Backstop Party or (ii) violate any applicable law or judgment applicable to it, (e) as of the date of this Backstop Commitment Letter, its Backstop Commitment is, and as of the date of commencement of
        any Rights Offering and as of the Effective Date its Backstop Commitment will be, less than the maximum amount that it is permitted to invest in any one portfolio investment pursuant to the terms of its constituent documents or otherwise, (f) it
        has, as of the date of this Backstop Commitment Letter, and will have, as of the Effective Date, in the aggregate available undrawn commitments and liquid assets at least in the sum of its Backstop Commitment Amount hereunder, and (g) as of
        November 1, 2019, it and its affiliates (excluding any affiliate that is an Other Backstop Party) beneficially owned, directly or indirectly, [____] shares of PG&E common stock and had a “put equivalent position” (as defined in Rule 16a-1 under
        the Securities Exchange Act of 1934, as amended) of [____] shares of PG&E common stock (the number of shares beneficially owned less the number of shares in the put equivalent position, as of a date determined by PG&E, but no more than two
        business days prior to the Allocation Date, being the “Backstop Party’s Shares”).

      

      

      In addition, the Backstop Party hereby represents and warrants, solely as to itself, as of the date of this Backstop Commitment Letter and as of the Effective Date, that the Backstop Party (i) is
        acquiring the shares of New HoldCo Common Stock for its own account, solely for investment and not with a view toward, or for sale in connection with, any distribution thereof in violation of any foreign, federal, state or local securities or “blue
        sky” laws, or with any present intention of distributing or selling such shares in violation of any such laws, (ii) has such knowledge and experience in financial and business matters and in investments of this type that it is capable of evaluating
        the merits and risks of its investment in the shares of New HoldCo Common Stock and of making an informed investment decision, and (iii) is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act of 1933, as
        amended (the “Securities Act”).  The Backstop Party understands that Reorganized HoldCo will be relying on the statements contained herein to establish an exemption from registration under
        the Securities Act and under foreign, federal, state and local securities laws and acknowledges that the shares of New HoldCo Common Stock will not be registered under the Securities Act or any other applicable law and that such shares may not be
        transferred except pursuant to the registration provisions of the Securities Act (and in compliance with any other applicable law) or pursuant to an applicable exemption therefrom.

      

      

      
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      4.          Conditions to Backstop Party Commitment.  The obligations of the Backstop Party to fund its Backstop Commitment to PG&E in accordance with this Backstop Commitment
        Letter are further expressly conditioned upon and subject to the satisfaction or written waiver by the Backstop Party, in its sole discretion, at or prior to the Effective Date of each of the following conditions, which PG&E acknowledges are an
        integral part of the transactions contemplated by this Backstop Commitment Letter and without these conditions the Backstop Party would not have entered into this Backstop Commitment Letter.

      

      

      a.          by December 24, 2019, the Debtors shall have received valid and enforceable Other Backstop Commitments on substantially the same terms and conditions as set forth in this Backstop
        Commitment Letter that in the aggregate with this Backstop Commitment result in Aggregate Backstop Commitments of no less than the Equity Offering Cap;

      

      

      b.          other than the consummation of any Permitted Equity Offering or the Rights Offering, the satisfaction of all of the other conditions to the Effective Date provided for in the Plan or
        the waiver of any such conditions by the Debtors in accordance with the Plan (to the extent the Plan expressly provides for the possibility of such a waiver);

      

      

      c.          the Bankruptcy Court shall have entered the Confirmation Order, which shall confirm the Plan with such amendments, modifications, changes and consents as are approved by those entities
        having no less than a majority of the Aggregate Backstop Commitments (such approval not to be unreasonably withheld, conditioned or delayed), and such Confirmation Order shall be in full force and effect, and no stay thereof shall be in effect;

      

      

      d.          this Backstop Commitment Letter shall have been approved by an order of the Bankruptcy Court and such order shall be in full force and effect, and no stay thereof shall be in effect;

      

      

      e.          the transactions contemplated herein shall have been authorized by an order of the Bankruptcy Court (which may be the Confirmation Order) such order shall be in full force and effect,
        and no stay thereof shall be in effect;

      

      

      f.          total PG&E weighted average earning rate base (including electric generation, electric transmission, electric distribution, gas distribution, gas transmission and storage) for
        estimated 2021 shall be no less than 95% of $48 billion; and

      

      

      g.          no result, occurrence, fact, change, event, effect, violation, penalty, inaccuracy or circumstance (whether or not constituting a breach of a representation, warranty or covenant set
        forth in the Plan) that, individually or in the aggregate with any such other results, occurrences, facts, changes, events, effects, violations, penalties, inaccuracies, or circumstances, (i) would have or would reasonably be expected to have a
        material adverse effect on the business, operations, assets, liabilities, capitalization, financial performance, financial condition or results of operations, in each case, of the Debtors, taken as a whole, or (ii) would reasonably be expected to
        prevent or materially delay the ability of the Debtors to consummate the transactions contemplated by this Backstop Commitment Letter or the Plan or perform their obligations hereunder or thereunder (each a “Material Adverse Effect”) shall have occurred; provided, however, that none of the following results, occurrences, facts, changes, events, effects, violations, penalties, inaccuracies,
        or circumstances shall constitute or be taken into account in determining whether a Material Adverse Effect has occurred, is continuing or would reasonably be expected to occur: (A) the filing of the Chapter 11 Cases, and the fact that the Debtors
        are operating in bankruptcy, (B) results, occurrences, facts, changes, events, effects, violations, inaccuracies, or circumstances affecting (1) the electric or gas utility businesses in the United States generally or (2) the economy, credit,
        financial, capital or commodity markets, in the United States or elsewhere in the world, including changes in interest rates, monetary policy or inflation, (C) changes or prospective changes in law (other than any law or regulation of California or
        the United States that is applicable to any electrical utility) or in GAAP or accounting standards, or any changes or prospective changes in the interpretation or enforcement of any of the foregoing, (D)  any decline in the market price, or change
        in trading volume, of any securities of the Debtors, (E) any failure to meet any internal or public projections, forecasts, guidance, estimates, milestones, credit ratings, budgets or internal or published financial or operating predictions of
        revenue, earnings, cash flow or cash position, (F) any wildfire occurring after the Petition Date and prior to January 1, 2020, and (G) one or more wildfires, occurring on or after January 1, 2020, that destroys or damages fewer than 500 dwellings
        or commercial structures (“Structures”) in the aggregate (it being understood that (I) the exceptions in clauses (D) and (E) shall not prevent or otherwise affect a determination that the
        underlying cause of any such change, decline or failure referred to therein is a Material Adverse Effect and (II) a Material Adverse Effect shall include the occurrence of one or more wildfires on or after January 1, 2020 destroying or damaging at
        least 500 Structures within PG&E’s service area at a time when the portion of PG&E’s system at the location of such wildfire was not successfully de-energized).

      

      

      
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      5.          Termination by the Backstop Party.  Subject to the penultimate paragraph of this Section 5, the Backstop Party may terminate this Backstop Commitment Letter, solely as
        to itself, by written notice (which shall describe the basis for such termination), on or after the occurrence of any of the following (each a “Backstop Party Termination Event”):

      

      

      a.          the Plan (including as may be amended, modified or otherwise changed) filed by the Debtors (i) does not include Knighthead and Abrams as plan proponents and is not in a form acceptable
        to each of Knighthead and Abrams or (ii) does not provide for substantially the same classification and treatment, including releases, of all Claims (other than Holdco Other Wildfire Claims and Utility Other Wildfire Claims) as provided in the
        Debtors’ Joint Chapter 11 Plan of Reorganization filed with the Bankruptcy Court on November 4, 2019;

      

      

      b.          the condition set forth in Section 4(a) is not satisfied as of December 24, 2019;

      

      

      c.          the Bankruptcy Court has not entered an order approving this Backstop Commitment Letter (the “Backstop Approval Order”) on or
        before January 31, 2020;

      

      

      d.          subject to Section 11, (i) the Plan has been amended, modified or changed, in each case without the consent of the entities holding a majority of the Aggregate Backstop Commitments
        (such consent not to be unreasonably withheld, conditioned or delayed) or (ii) any Plan Supplement or any Plan Document shall have been filed or finalized without the consent of entities holding a majority of the Aggregate Backstop Commitments
        (such consent not to be unreasonably withheld, conditioned or delayed);

      

      

      e.          the Confirmation Order has not been entered by the Bankruptcy Court on or before June 30, 2020 (the “Outside Date”);

      

      

      f.          the Effective Date has not occurred on or before 60 days after entry of the Confirmation Order;

      

      

      g.          the Debtors have failed to perform any of their obligations set forth in this Backstop Commitment Letter, which failure to perform (i) would give rise to the failure of a condition set
        forth in Section 4(b) or 4(c) and (ii) is incapable of being cured or, if capable of being cured by the Outside Date, the Debtors have not cured within 10 calendar days following receipt by the Debtors of written notice of such failure to perform
        from the Backstop Party stating the Backstop Party’s intention to terminate this Backstop Commitment Letter pursuant to this Section 5(g) and the basis for such termination;

      

      

      h.          the occurrence of a Material Adverse Effect;

      

      

      i.          the occurrence of one or more wildfires in the Debtors’ service territory after the Petition Date and prior to January 1, 2020 that is asserted by any person to arise out of the
        Debtors’ activities and that destroys or damages more than 500 Structures; provided, however, that any notice of termination under
        this clause (i) must be given on or before the entry of the Backstop Approval Order;

      

      

      
        8

        
          

      

      

      

      j.           the Debtors’ aggregate liability with respect to Wildfire Claims is determined (whether (i) by the Bankruptcy Court (or the District Court to which the reference has been partially
        withdrawn for estimation purposes), (ii) pursuant to an agreement between the Debtors and the holders of Wildfire Claims, or (iii) through a combination thereof) to exceed $25.5 billion;

      

      

      k.          the CPUC fails to issue all necessary approvals, authorizations and final orders to implement the Plan prior to the Outside Date, and to participate in the Go-Forward Wildfire Fund,
        including: (i) provisions satisfactory to entities holding a majority of the Aggregate Backstop Commitments (such approval not to be unreasonably withheld, conditioned or delayed) pertaining to authorized return on equity and regulated capital
        structure, (ii) a disposition, satisfactory to entities holding a majority of the Aggregate Backstop Commitments (such approval not to be unreasonably withheld, conditioned or delayed), of proposals for certain potential changes to PG&E’s
        corporate structure and authorizations for the Utility to operate as a utility, (iii) a resolution, satisfactory to entities holding a majority of the Aggregate Backstop Commitments (such approval not to be unreasonably withheld, conditioned or
        delayed), of claims for monetary fines or penalties under the California Public Utilities Code for conduct prior to the Petition Date, and (iv) approval (or exemption from approval) of the financing structure and securities to be issued under the
        Plan;

      

      

      l.          if at any time after the first day of the Confirmation Hearing, either (i) asserted Administrative Expense Claims exceed $250 million, excluding (A) all ordinary course Administrative
        Expense Claims, (B) all Professional Fee Claims, (C) all Disallowed Administrative Expense Claims; and (D) the portion of an Administrative Expense Claim that is covered by insurance (the Administrative Expense Claims in clauses (A) through (D)
        shall be referred to collectively as “Excluded Administrative Expense Claims”), or (ii) the Debtors have reserved for and/or paid more than $250 million in the aggregate for Administrative
        Expense Claims, excluding the Excluded Administrative Expense Claims;

      

      

      m.          (i) there is in effect an order of a governmental authority of competent jurisdiction permanently restraining, enjoining or otherwise prohibiting the consummation of any of the
        transactions contemplated by the Plan, or (ii) any law, statute, rule, regulation or ordinance is adopted that makes consummation of the transactions contemplated by the Plan illegal or otherwise prohibited;

      

      

      n.          the occurrence of one or more wildfires on or after January 1, 2020 destroying or damaging at least 500 Structures within PG&E’s service area at a time when the portion of
        PG&E’s system at the location of such wildfire was not successfully de-energized;

      

      

      o.          if as of the Effective Date, the Utility has not both (i) elected, and received Bankruptcy Court approval, to participate in the Go-Forward Wildfire Fund and (ii) satisfied the other
        conditions to participation in the Go-Forward Wildfire Fund set forth in the Wildfire Legislation;

      

      

      p.          the Debtors breach the provisions of Section 14(b) and either (i) such breach is incapable of being cured or (ii) if capable of being cured by the Outside Date, the Debtors have not
        cured within 5 business days following receipt by the Debtors of written notice of such breach from the Backstop Party stating the Backstop Party’s intention to terminate this Backstop Commitment Letter pursuant to this Section 5(p);

      

      

      q.          if at any time the Bankruptcy Court determines that the Debtors are insolvent;

      

      

      r.          if the Company and/or any of its subsidiaries shall enter into any Tax Benefit Monetization Transaction, and the net cash proceeds thereof to the Company (or such subsidiary)
        attributable to NOLS and tax deductions arising, in each case, from the payment of Wildfire Claims shall be less than $3 billion (excluding, for the avoidance of doubt, $1.35 billion of Tax Benefits utilized in the Plan); or

      

      

      s.          the Plan, any Plan Supplement or any Plan Document has been amended, modified or changed, in each case without the consent of the entities holding at least 66 2/3% of the Aggregate
        Backstop Commitments to include a process for transferring the license and operating assets of the Utility to the State of California or a third party (a “Transfer”) or PG&E effects a
        Transfer other than pursuant to the Plan.

      

      

      
        9

        
          

      

      

      

      PG&E shall promptly, but in no event later than two business days after the relevant occurrence, provide notice to the Backstop Party of (i) the occurrence of any fact, event, or omission that
        is not publicly disclosed that gives rise or reasonably can be expected to give rise to a termination right under this Section 5 and (ii) the receipt of any termination notice from any Other Backstop Party, including the asserted basis for such
        termination, whether or not PG&E concurs therewith.

      

      

      Upon valid termination of this Backstop Commitment Letter by the Backstop Party (such terminating Backstop Party, a “Terminating Backstop Party”)

        pursuant to any of Section 5(a) through (s), this Backstop Commitment Letter shall be void and of no further force or effect solely with respect to such Terminating Backstop Party is obligated herein, such Terminating Backstop Party shall be
        released from its Backstop Commitments, undertakings and agreements under or related to this Backstop Commitment Letter, including its Backstop Commitment, except as explicitly provided herein and there shall be no liability or obligation on the
        part of such Terminating Backstop Party hereunder, except as expressly provided herein.  Notwithstanding any termination by a Terminating Backstop Party, PG&E shall remain liable for the payment of all Backstop Commitment Premiums and expense
        reimbursement obligations in this Backstop Commitment Letter.

      

      

      The Backstop Party’s obligations under this Backstop Commitment Letter shall automatically terminate in the event that PG&E has not returned a counter-signed copy of this Backstop Commitment
        Letter agreeing to its terms on or before the date that is two weeks from the day the Backstop Party furnished a signed copy of this Backstop Commitment Letter to PG&E.

      

      

      The Backstop Party may not seek to (i) assert the failure of any condition precedent to any of its obligations or agreements under this Backstop Commitment Letter or (ii) terminate this Backstop
        Commitment Letter (including pursuit of any other remedies), in each case unless the Backstop Party has given written notice to PG&E of such assertion or termination.

      

      

      Notwithstanding anything in this Backstop Commitment Letter to the contrary, any notice of termination under clauses (d), (g), (h), (k), (l) and (m)(ii) shall not be effective unless PG&E has
        received notices of termination from entities constituting a majority of the outstanding Aggregate Backstop Commitments with respect to the event or circumstance that is the basis for such notice of termination.  PG&E shall provide the Backstop
        Party with a notice of such effective termination within two business days of the effectiveness of the termination.

      

      

      In the event that any fact or circumstance would give the Backstop Party the right to terminate under more than one clause in this Section 5, the exercise of a termination right under any one
        clause shall not prejudice the Backstop Party from exercising a termination right under any other clause based on the same event or circumstance.

      

      

      6.          Termination by PG&E; Defaulting Backstop Party; Extension Options.  PG&E may terminate this Backstop Commitment Letter (including all Backstop Commitments
        hereunder) (a) at any time prior to countersigning such Backstop Commitment Letter; (b) if, on any date after December 24, 2019, the condition set forth in Section 4(a) would not be satisfied if tested on such date; (c) in the event of a material
        breach of a representation or warranty of the Backstop Party set forth in Section 3; (d) in the event that the Backstop Party repudiates this Backstop Commitment Letter, purports to terminate this Backstop Commitment Letter if such purported
        termination is not a valid termination of this Backstop Commitment Letter as determined in a final order of a court with jurisdiction or fails to fund its Backstop Commitment when required to do so in accordance with this Backstop Commitment
        Letter; (e) if the Backstop Commitment Amount has been reduced to zero in accordance with Section 7; (f) if the Backstop Party has the right to terminate this Backstop Commitment Letter under clause (h), (i), (m) or (q) of Section 5; or (g) if (i)
        a third party makes a binding proposal to acquire at least 50% of the outstanding PG&E common stock (including by means of a merger, joint venture, partnership, consolidation, dissolution, liquidation, tender offer, recapitalization,
        reorganization, share exchange, business combination or similar transaction), (ii) either (x) the implementation of such proposal would require the approval of holders of a majority of the PG&E common stock or (y) the price contemplated by such
        proposal would exceed 160% of the Equity Offering Cap, and (iii) the Board determines in good faith, after consultation with PG&E’s outside legal counsel, that the failure to terminate this Backstop Commitment Letter in response to such
        proposal would be inconsistent with the exercise of its fiduciary duties to the stockholders of PG&E under applicable law.  In the event of a breach, repudiation, purported termination or failure to fund contemplated by the foregoing clause (c)
        or (d), the Backstop Party shall be deemed to be a “Defaulting Backstop Party”.  In the event that the Backstop Party becomes a Defaulting Backstop Party, then PG&E may, upon notice to
        such Defaulting Backstop Party, require the Backstop Party to assign and delegate, without recourse, all its interests, rights (other than any Backstop Commitment Premiums earned prior to the date of such assignment and delegation) and obligations
        under this Backstop Commitment Letter to a third party that shall assume such obligations (which assignee may be an Other Backstop Party, if an Other Backstop Party accepts such assignment and delegation).  PG&E shall not exercise a termination
        right under Section 6(b) unless it has used commercially reasonable efforts to replace the Other Backstop Commitment Letter giving rise to the termination right within fourteen (14) calendar days of the termination of the applicable Other Backstop
        Commitment Letter and the condition in Section 4(a) is still not satisfied at the expiration of that fourteen (14) calendar day period.  Notwithstanding any termination by PG&E under Sections 6(b), (e), (f) or (g), PG&E shall remain liable
        for the payment of all earned Backstop Commitment Premiums and expense reimbursement obligations in this Backstop Commitment Letter.

      

      

      
        10

        
          

      

      

      

      In the event that any fact or circumstance would give PG&E the right to terminate under more than one clause in this Section 6, the exercise of a termination right under any one clause shall
        not prejudice PG&E from exercising a termination right under any other clause based on the same event or circumstance.

      

      

      7.          Reduction of Commitments by PG&E.

      

      

      a.          In the event that on or prior to December 24, 2019 (the “Commitment Deadline”), PG&E receives Aggregate Backstop
        Commitments that exceed the Equity Offering Cap (such excess, the “Overallotment Amount”), then, on the earlier of (x) five business days thereafter and (y) December 27, 2019 (the “Allocation Date”), the Backstop Commitment Amount shall (i) if the Backstop Party was a Backstop Party under a Prior Commitment Letter (an “Incumbent

          Backstop Party”), be unchanged, unless the Backstop Party otherwise agrees (provided that if the Aggregate Backstop Commitments of the Incumbent Backstop Parties exceed the Equity Offering Cap (such excess, the “Incumbent Overallotment Amount”), then the Backstop Commitment Amount of each Incumbent Backstop Party shall be reduced by an amount equal to the Incumbent Backstop Party’s pro rata share of
        the Incumbent Overallotment Amount, which shall be calculated as a percentage equal to the Backstop Commitment Amount divided by the Aggregate Backstop Commitments of the Incumbent Backstop Parties), or
        (ii) if the Backstop Party was not a Backstop Party under a Prior Commitment Letter, be equal to the Backstop Party’s pro rata share of the difference (which may be zero) between the Equity Offering Cap and the Aggregate Backstop Commitments of the
        Incumbent Backstop Parties after giving effect to the foregoing clause (a)(i), which shall be calculated as a percentage equal to the Backstop Commitment Amount divided by the Aggregate Backstop Commitments
        from any party to this Backstop Commitment Letter or Other Backstop Commitment Letter that is not an Incumbent Backstop Party. Notwithstanding the foregoing, on the Allocation Date, in the event there is an Overallotment Amount and for the purpose
        of curing such Overallotment Amount, PG&E may reduce the Backstop Commitment Amount as to any Backstop Party to the extent such reduction is reasonably advisable (based on the advice of the Debtors’ tax advisors after consultation with Jones
        Day) in order to avoid an “ownership change” within the meaning of Section 382 and the Treasury Regulations promulgated thereunder or to otherwise preserve the ability of the Debtors to utilize their NOLs; provided that such
        reduction may not be below the amount of Backstop Commitments at which such Backstop Party would maintain its existing percentage ownership of the total outstanding shares of PG&E common stock.  Within three business days of the Allocation
        Date, PG&E shall provide the Backstop Party with a notice of any adjustment to its Backstop Commitment Amount under this Section 7(a).

      

      

      
        11

        
          

      

      b.          In the event that, after the Commitment Deadline, the Debtors (i) receive binding commitments providing for funding from any Additional Capital Sources that (A) have conditions to
        funding and commitment termination rights that are no less favorable to PG&E than those in this Backstop Commitment Letter and (B) are approved by an order of the Bankruptcy Court, or (ii) actually obtain funding from any Additional Capital
        Sources, then (x) in the case of clause (i), PG&E may reduce the Backstop Commitment Amount, and (y) in the case of clause (ii), the Backstop Commitment Amount shall be automatically reduced (if not already reduced pursuant to clause (i)), in
        each case by an amount equal to (A) the amount of such funding, times (B) a fraction, (1) the numerator of which is the Backstop Commitment Amount immediately prior to such reduction and (2) the denominator of which is the Aggregate Backstop
        Commitments as of immediately prior to such reduction.  Any reduction in the Backstop Commitment pursuant to this Section 7(b) shall not reduce any Backstop Commitment Premium.

      

      

      c.          In the event that the Debtors consummate any Permitted Equity Offering or Rights Offering, the Backstop Commitment Amount shall be automatically reduced by an amount equal to (i) the
        net cash proceeds of such Permitted Equity Financing or such Rights Offering, as applicable, times (ii) a fraction, (A) the numerator of which is the Backstop Commitment Amount immediately prior to such
        reduction and (B) the denominator of which is the Aggregate Backstop Commitments as of immediately prior to such reduction.

      

      

      d.          The Debtors shall provide notice to the Backstop Party in the event that the Backstop Commitment Amount is reduced as provided above.  References herein to “Backstop Commitment Amount”
        or “Backstop Commitment” mean such amounts as adjusted in accordance with the terms of this Backstop Commitment Letter. Any Backstop Commitments that have been terminated or reduced shall be terminated or reduced, as applicable, permanently.

      

      

      8.          Assignment.  This Backstop Commitment Letter (a) is not assignable by the Backstop Party, and any purported assignment shall be null and void ab initio; provided, however, Backstop Party may assign its Backstop Commitment, in whole or in part, to (i) an Other Backstop Party, (ii) an affiliate of the Backstop Party, or (iii) an
        investment fund or separately managed account the primary investment advisor or sub advisor to which is a Backstop Party or an affiliate thereof, to the extent such assignee Backstop Party agrees in writing to assume all obligations hereunder of
        such Backstop Party in connection with such Backstop Commitment, and any assignment under this proviso shall not relieve the Backstop Party from its obligations under this Backstop Commitment Letter, and (b) is intended to be solely for the benefit
        of the parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person or entity other than the parties hereto.  Notwithstanding the foregoing, a Backstop Party may assign all or any portion of its
        rights and obligations hereunder to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933, as amended), without the consent of any party, provided, however, that (i) absent the
        prior written consent of PG&E, such assignee (including any Entity) does not, and as a result of such assignment will not, beneficially own more than 4.75% of the Aggregate Backstop Commitments and (ii) any assignment under this sentence shall
        not relieve the Backstop Party from its obligations under this Backstop Commitment Letter.

      

      

      9.          Entire Agreement.  This Backstop Commitment Letter, including all exhibits hereto, constitutes the entire understanding among the parties hereto with respect to the
        subject matter hereof and replaces and supersedes all prior agreements and understandings, both written and oral, between the parties hereto (or any of their respective affiliates) with respect to the subject matter hereof (including the Chapter 11
        Plan Backstop Commitment Letter dated as of September 9, 2019, September 13, 2019, October 20, 2019, November 16, 2019, or December 6, 2019, if applicable) and, subject to the terms hereof, shall become effective and binding upon the mutual
        exchange of fully executed counterparts by each of the parties hereto.

      

      

      
        12

        
          

      

      

      

      10.          Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Backstop Commitment Letter shall be governed by, and construed in accordance with, the internal laws
        of the State of New York, without giving effect to the principles of conflict of laws that would require the application of the law of any other jurisdiction.  By its execution and delivery of this Backstop Commitment Letter, each of the parties
        hereto irrevocably and unconditionally agrees for itself that any legal action, suit or proceeding against it with respect to any matter under or arising out of or in connection with this Backstop Commitment Letter or for recognition or enforcement
        of any judgment rendered in any such action, suit or proceeding, may be brought only in the Bankruptcy Court.  By execution and delivery of this Backstop Commitment Letter, each of the parties hereto irrevocably accepts and submits itself to the
        exclusive jurisdiction of the Bankruptcy Court with respect to any such action, suit or proceeding.  EACH PARTY HERETO UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING REFERRED TO ABOVE.

      

      

      11.          Amendment; Waiver; Counterparts.

      

      

      a.          This Backstop Commitment Letter may not be amended or waived by or on behalf of the Backstop Party, and no consent may be given hereunder by or on behalf of the Backstop Party
        (including to an amendment or waiver of any provision of the Plan), except in writing signed by the holders of a majority of the Aggregate Backstop Commitments (whether or not the Backstop Party signs such amendment or waiver), and confirmed in
        writing by the Company; provided, however, that (i) without the prior written consent of the Backstop Party, this Backstop Commitment Letter may not be amended to (A) increase the amount of the Backstop Commitment
        Amount or Backstop Commitment; (B) decrease the Backstop Commitment Premium, change the time at which the Backstop Commitment Premium shall be fully earned, or change the definition of “Applicable Premium Reduction Percentage”, “Premium Clawback
        Event” or “Special Premium Clawback Event” in a manner adverse to the Backstop Party; (C) extend the Backstop Commitment beyond August 29, 2020; (D) amend the definition of “Backstop Price” or any component thereof; (E) amend, modify, or waive the
        conditions in clauses (d), (e) or (f) of Section 4; (F) increase the amount of the Equity Offering Cap; (G) amend, modify or waive Section 2(e) or 2(f); (H) amend, modify or waive clause (a), (b), (c), (e), (f), (i), (j), (m)(i), (n), (o), (p),
        (q), (r) or (s) of Section 5, the first sentence of the penultimate paragraph of Section 5, this proviso to Section 11(a), Section 11(b), Section 11(c), Section 11(d) or Section 14(b); (I) amend, modify or waive the second to last sentence of
        Section 1(b); (J) amend, modify or waive Section 2(d); (K) amend, modify or waive the second sentence of Section 1(e); or (L) amend, modify or waive Section 2(f); and (ii) without the prior written consent of holders of more than sixty percent
        (60%) of the Aggregate Backstop Commitments, this Backstop Commitment Letter may not be amended to amend, modify or waive any provision of this Agreement so as to permit the aggregate amount of Additional Capital Sources plus the aggregate amount of proceeds of any Equity Offering plus the aggregate amount of proceeds funded under the Backstop Commitments to exceed the Equity Offering Cap.  This Backstop
        Commitment Letter may be executed in any number of counterparts, each of which will be an original, and all of which, when taken together, will constitute one agreement.  Delivery of an executed counterpart of this Backstop Commitment Letter by
        e-mail or portable document format (PDF) will be effective as delivery of a manually executed counterpart of this Backstop Commitment Letter.

      

      

      b.          In the event that (i) PG&E seeks a waiver of a Backstop Party Termination Event (any such waiver, a “Waiver”) (ii)
        PG&E obtains written Waivers from the holders of a majority of the Aggregate Backstop Commitments (the “Waiver Threshold”), then PG&E shall provide the Backstop Party, to the
        extent it has not delivered a Waiver (a “Non-Waiving Backstop Party”), a notice of the occurrence of the specific Backstop Party Termination Event, including the facts giving rise to the
        specific Backstop Party Termination Event (the “Specified Backstop Termination Event”), and that PG&E has met the Waiver Threshold.  The Non-Waiving Backstop Party shall have five (5)
        business days from the date such notice is issued to exercise its right to terminate this Backstop Commitment Letter pursuant to Section 5 based on the Specified Backstop Termination Event; and the failure to exercise a termination
        right referred in the foregoing clause within this time period shall be deemed a waiver of the Specified Backstop Termination Event (but not any other Backstop Party Termination Event).

      

      

      
        13

        
          

      

      

      

      c.          In the event that PG&E seeks an amendment, modification or waiver contemplated by Section 11(a)(ii) (any such amendment, modification or waiver, a “ Specified Amendment”), and PG&E obtains written Waivers or Specified Amendments from the holders of more than 60% of the Aggregate Backstop Commitments (the “Specified

          Amendment Threshold”) then PG&E shall provide the Backstop Party, to the extent it has not delivered a Specified Amendment (a “Non-Amending Backstop Party”), or request for
        the Specified Amendment, including the specific terms of the request for the Specified Amendment, and that PG&E has met the Specified Amendment Threshold.  The Non-Amending Backstop Party shall have five (5) business days from the date such
        notice is issued to terminate this Backstop Commitment Letter solely as to itself by written notice under this Section 11(c); and the failure to exercise a termination right and the failure to exercise a termination right referred to in this
        Section 11(c) shall be deemed to be a consent to the Specified Amendment.

      

      

      d.          Any deemed waiver of a Specified Backstop Termination Event under Section 11(b) and any deemed consent to the Specified Amendment under Section 11(c) are subject to the condition that
        PG&E has provided the Backstop Party with notice of the request for the Waiver, in the case of Section 11(b), or the request for the Specified Amendment, in the case of Section 11(c), no later than the time that such request is given to holders
        of no more than 25% of the Aggregate Backstop Commitments.

      

      

      12.          Notices.  All notices required or permitted to be given under this Backstop Commitment Letter, unless otherwise stated herein, shall be given by overnight courier at
        the addresses specified below, or at such other address or addresses as a party may designate for itself in writing, or by email (if confirmed) at the email addresses specified below:

      

      

      If to the Backstop Party, to the name, address and email address located on the Backstop Party’s signature page to this Backstop Commitment Letter.

      

      

      

      

      If to the Debtors:

      

      

      PG&E Corporation

      77 Beale Street

      P.O. Box 770000

      San Francisco, California 94177

      Attention: Janet Loduca, Senior Vice President and General Counsel

      

      

      with a copy to:

      

      

      Cravath, Swaine & Moore LLP

      825 Eighth Avenue

      New York, New York 10019

      Attention:  Richard Hall; Paul Zumbro

      Email:  RHall@cravath.com; PZumbro@cravath.com

      

      

      Weil, Gotshal & Manges LLP

      767 Fifth Avenue

      New York, New York  10153

      Attention:  Stephen Karotkin

      Email:  Stephen.karotkin@weil.com

      

      

      
        14

        
          

      

      

      

      13.          No Liability.  Notwithstanding anything that may be expressed or implied in this Backstop Commitment Letter, each party hereto acknowledges and agrees that no person
        other than the Backstop Party (and it permitted assigns) shall have any obligation hereunder (subject to the limitations provided herein) or in connection with the transactions contemplated hereby and that (a) notwithstanding that any Backstop
        Party may be a partnership, limited partnership or limited liability company, no recourse (whether at law, in equity, in contract, in tort or otherwise) hereunder or under any document or instrument delivered in connection herewith, or in respect
        of any oral representations made or alleged to be made in connection herewith or therewith, shall be had against any former, current or future direct or indirect equity holder, controlling person, general or limited partner, shareholder, member,
        investment manager or adviser, manager, director, officer, employee, agent, affiliate, assignee, representative or financing source of any of the foregoing) (any such person or entity, other than such Backstop Party, a “Related Party”) or any Related Party of any such Related Party, including, without limitation, any liabilities arising under, or in connection with, the Plan or this Backstop Commitment Letter and the
        transactions contemplated thereby and hereby, or in respect of any oral representations made or alleged to be made in connection therewith or herewith), whether by the enforcement of any judgment or assessment or by any legal or equitable
        proceeding, or by virtue of any statute, regulation or other applicable law and (b) no personal liability whatsoever will attach to, be imposed on or otherwise be incurred by any Related Party of the Backstop Party or any Related Party of any such
        Related Party under this Backstop Commitment Letter or any document or instrument delivered in connection herewith or with the Plan Term Sheet or the Plan (or in respect of any oral representation made or alleged to be made in connection herewith
        or therewith) or for any action (whether at law, in equity, in contract, in tort or otherwise) based on, in respect of, or by reason of such obligations hereunder or by their creation.

      

      

      14.          Plan Support.

      

      

      a.          For as long as this Backstop Letter Agreement is in effect, the Backstop Party shall (i) use all reasonable efforts to support the Plan with respect to the treatment of HoldCo Common
        Interests and to act in good faith to consummate the Plan with respect to any Equity Offering and the Backstop Commitments, (ii) to the extent the Backstop Party is entitled to vote on the Plan and, with respect to Claims, controls the votes,
        timely vote (or cause to be voted) all of its HoldCo Common Interests and Claims to accept the Plan (and not to change or withdraw any such vote), and (iii) timely vote (or cause to be voted) its HoldCo Common Interests and Claims to reject any
        plan of reorganization other than the Plan; provided, however, that unless the Claims held by the Backstop Party receive no less favorable treatment than other similarly
        situated Claims under the Plan, then the obligations of the Backstop Party under clauses (i), (ii) and (iii) shall not apply to the Backstop Party’s Claims.  This Section 14 shall apply solely to the Backstop Party and not to any of its
        subsidiaries or other affiliates.

      

      

      b.          To the extent that the Debtors provide, directly or indirectly, another creditor holding a Funded Debt Claim with more favorable treatment to such creditor’s Funded Debt Claim than
        provided to the Backstop Party holding a similarly situated Funded Debt Claim (it being understood that Funded Debt Claims are not similarly situated unless they have substantially the same interest rate and tenor and the same obligor), the Debtors
        shall take all actions so that such more favorable treatment shall apply to the Backstop Party’s similarly situated Funded Debt Claim, including by amending the Plan to provide for the application of such more favorable treatment to the Backstop
        Party’s Claims.

      

      

      c.          The rights of the Backstop Party under Section 5(p), Section 11 (with respect to Section 5(p) or Section 14(b)) and Section 14(b) are personal to the Backstop Party and may not be
        assigned to any person (it being agreed that the Backstop Party may assign its other rights under this Backstop Commitment Letter in accordance with Section 8).

      

      

      15.          The Backstop Party shall not be required, pursuant to the terms of this Backstop Commitment Letter, to acquire or purchase any securities or indebtedness in connection with any Equity
        Offering that, pursuant to the terms of a Backstop Commitment Letter or other agreement, are to be acquired or subscribed for by any other party, nor shall the Backstop Party be required, pursuant to the terms of this Backstop Commitment Letter, to
        pay any money or other consideration, or exchange any claims whatsoever, which are owing from, or to be transferred from or by, any other party pursuant to the terms of another Backstop Commitment Letter or other agreement.  Nothing in this
        Backstop Commitment Letter shall be deemed to constitute an agreement or a joint venture or partnership with or between any other person or entity nor constitute any party as the agent of any other person or entity for any purpose.  For the
        avoidance of doubt, no Backstop Party shall, nor shall any action taken by a Backstop Party hereunder, be deemed to be acting in concert with any other person or entity with respect to the Backstop Commitment or any other matter nor shall the
        Backstop Commitments hereunder create a presumption that the Backstop Party is in any way acting in concert or as a group with any other person or entity whether as a result of this commitment or otherwise.

      

      

      
        15

        
          

      

      

      

      16.          Each party hereto confirms that it has made its own decision to execute this Backstop Commitment Letter based upon its own independent assessment of documents and information available
        to it, as it has deemed appropriate.

      

      

      17.          Except as expressly provided in this Backstop Commitment Letter, (a) nothing herein is intended to, or does, in any manner waive, limit, impair or restrict the ability of each party
        hereto to protect and preserve its rights, remedies and interests, including, without limitation, any claims against or interests in any of the Debtors or other parties, or its full participation in any bankruptcy proceeding, and (b) the parties
        hereto each fully preserve any and all of their respective rights, remedies, claims and interests as of the date hereof and upon a termination of this Backstop Commitment Letter.  Further, nothing in this Backstop Commitment Letter shall be
        construed to prohibit any party hereto from appearing as a party-in-interest in any matter to be adjudicated in the Chapter 11 Cases, so long as such appearance and the positions advocated in connection therewith are consistent with this Backstop
        Commitment Letter and the Plan, and are not for the purpose of, and could not reasonably be expected to have the effect of, hindering, delaying or preventing the consummation of the transactions contemplated by the Plan.

      

      

      18.          Tax Treatment of Backstop Commitment Premium. Except as otherwise required by a final determination by an applicable taxing authority (including with respect to an
        Other Backstop Commitment Letter) or change in applicable law:  (A) the Backstop Party and the Debtors hereto agree to treat, for U.S. federal income tax purposes, the entering into of the Backstop Commitment pursuant to this Backstop Commitment
        Letter as the sale of a put option by the Backstop Party to the Debtors and the Backstop Commitment Premium as the sale price for such put option; and (B) the Backstop Party and the Debtors shall not take any position on any tax return or otherwise
        take any action related to taxes inconsistent with such treatment  (which, for the avoidance of doubt, in the case of the Debtors, shall include any position or action with respect to the Other Backstop Commitment Letters).

      

      

      19.          Press Releases.  The Debtors shall not issue any press release or otherwise make any public statement that identifies the Backstop Party without the Backstop Party’s
        prior written consent; provided that the Debtors shall be permitted to identify the Backstop Party in any filing required to be made with the SEC but only to the extent that the identification of the Backstop Party is expressly
        required.

      

      

      [signature page follows]

      

      

      
        16

        
          

      

      

      

      

      

      

      

      

      

      
        	 	Sincerely,	 
	 	 	 
	 	Backstop Party:	 
	 	 	 	 
	
                

                

              	
                By: 

              	

              	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	Notice Information:	 

      

      

      

      

      

      

      

      

      
        17

        
          

      

      

      

      

      

      Accepted and agreed this ____ day of ___________, 2019, by:

      

      

      PG&E CORPORATION

      

      

      

      

      By:____________________________________          

      

      Name: [●]

      Title: [●]

      

      

      
        18

        
          

      

      

      

      Exhibit A

      Backstop Terms

      

      

      	
              Backstop Party

            	
              Backstop Commitment Amount

              (rounded to the nearest cent)

               

              

            
	
               

              

              [Backstop Party]

            	
               

              

              $

            

      

      

      Payments

      

      

      The Backstop Commitment Premium shall be earned in full upon entry of the Backstop Approval Order.

      

      

      In addition, if PG&E terminates this Backstop Commitment Letter pursuant to Section 6(g), the Backstop Commitment Premium shall become due and payable at the election of the Backstop Party (a) in New Holdco Common Stock at the
        Backstop Price on the effective date of a plan of reorganization, or (b) in cash three business days after the date of such termination.  In the event that a plan of reorganization for the Debtors that is not the Plan is confirmed by the Bankruptcy
        Court, then the Backstop Commitment Premium shall be payable in cash if elected by the Backstop Party.

      

      

      Except as provided in the immediately preceding paragraph, the Backstop Commitment Premium shall be payable in shares of New HoldCo Common Stock to be issued on the Effective Date, based on the Backstop Price.

      

      

      Certain Defined Terms

      

      

      “Additional Premium” means an amount equal to (a) 212.1 basis points times (b) the difference between the Equity Offering Cap and the
        Aggregate Backstop Commitments delivered to the Company on or before December 20, 2019 at 6:00 p.m. Pacific (provided that if the amount of Aggregate Backstop Commitments delivered to the Company on or before December 20, 2019 at
        6:00 p.m. Pacific exceeds the Equity Offering Cap, the amount contemplated by this clause (b) shall be deemed to be zero).

      

      

      “Applicable Premium Reduction Percentage” shall mean an amount equal to (a) 85% of the Backstop Commitment Premium if there is a Premium Clawback Event on or prior to January
        20, 2020; (b) 60% of the Backstop Commitment Premium if there is a Premium Clawback Event after January 20, 2020 and on or before April 30, 2020; and (c) 10% of the Backstop Commitment Premium if there is a Premium Clawback Event after April 30,
        2020 and on or prior to the Effective Date.  Notwithstanding the foregoing, (i) in the case of a Special Premium Clawback Event pursuant to Section 5(l), the “Applicable Premium Reduction Percentage” shall mean an amount equal to 75% of the
        Backstop Commitment Premium; and (ii) in the case of a Special Premium Clawback Event pursuant to Section 11(c), the “Applicable Premium Reduction Percentage” shall mean an amount equal to (x) 75% of the Backstop Commitment Premium if there is a
        Special Premium Clawback Event pursuant to Section 11(c) on or prior to April 30, 2020; (y) 50% of the Backstop Commitment Premium if there is a Special Premium Clawback Event pursuant to Section 11(c) after April 30, 2020 and on or prior to May
        31, 2020; and (z) 25% of the Backstop Commitment Premium if there is a Special Premium Clawback Event pursuant to Section 11(c) after May 31, 2020.

      

      

      “Applicable Utility Index Multiple” shall mean the average normalized 2021 estimated price-to-earnings ratio of the U.S. regulated utilities in the S&P 500 Utilities
        (Sector) Index (after excluding AES, AWK, EXC, NRG, PEG, and PPL) over the 20-day trading period before the applicable measurement date per Capital IQ Consensus Estimates.

      

      

    

    
      
        

    

    

      “Backstop Commitment Premium” shall mean (a) if the Backstop Party delivered its Backstop Commitment Letter to the Company on or before December 20, 2019 at 6:00 p.m. Pacific,
        an amount equal to 636.4 basis points on the total amount of Backstop Commitment Amount immediately after the Allocation Date plus a pro rata share (based on Aggregate Backstop Commitments provided to the Company on or before December 20, 2019 at
        6:00 p.m. Pacific) of the Additional Premium; or (b) if the Backstop Party delivered its Backstop Commitment Letter to the Company after December 20, 2019 at 6:00 p.m. Pacific but on or before December 24, 2019 at 5:00 p.m. Eastern, an amount equal
        to 424.3 basis points on the total amount of Backstop Commitment Amount immediately after the Allocation Date.  The Backstop Commitment Premium shall not be subject to reduction based upon any subsequent reduction of the Backstop Commitment Amount,
        provided, that in the event of a Premium Clawback Event or a Special Premium Clawback Event, the Backstop Commitment Premium shall be reduced by the Applicable Premium Reduction Percentage.

      

      

      “Backstop Multiple” shall mean the lesser of (a) 10 and (b) 10 times one plus the percentage
        change of the Applicable Utility Index Multiple as measured on November 1, 2019 and the fifth business day prior to the Effective Date.  For the avoidance of doubt, the Backstop Multiple shall never exceed 10.

      

      

      “Backstop Price” means (a) the Backstop Multiple times (b) the Normalized Estimated Net Income as of the Determination Date, divided by (c) the number of fully diluted shares of PG&E (calculated using the treasury stock method) that will be outstanding as of the Effective Date (assuming all equity is raised by funding all
        Aggregate Backstop Commitments).

      

      

      “Backstop TBM Trust” means a trust established by the Utility to monetize Tax Benefits for the benefit of the Backstop Party and the Other Backstop Parties.

      

      

      “Backstop TBM Trust Agreement” means a trust agreement by and between the Reorganized Utility, the Backstop TBM Trust, and the Backstop TBM Trustee, in a form reasonable
        acceptable to the holders of a majority of the Aggregate Backstop Commitments, which shall provide for the periodic distribution of assets of the Backstop TBM Trust to the holders of Backstop TBM Trust Interests.

      

      

      “Backstop TBM Trust Interests” means interests in the Backstop TBM Trust.

      

      

      “Backstop TBM Trustee” means an individual approved by a majority of the holders of the Aggregate Backstop Commitments to serve as trustee of the Backstop TBM Trust, and any
        successor thereto appointed pursuant to the Backstop TBM Trust Agreement.

      

      

      “Board” means the Board of Directors of PG&E.  With respect to any matter, references to the Board include a committee of the Board that is duly authorized to act with
        respect to such matter.

      

      

      “Code” means the Internal Revenue Code of 1986, as amended.

      

      

      “Determination Date” shall mean the earlier of (a) the first day of the Confirmation Hearing and (b) if (i) the Per Share Price for a Permitted Equity Offering is to be finally
        determined prior to such first day, the date of such determination or (ii) if the exercise price of the Rights is finally determined prior to such first day, the date of such determination.

      

      

      “Normalized Estimated Net Income” shall mean, in each case with respect to the estimated year 2021, (a) on a component-by-component basis (e.g., distribution, generation, gas
        transmission and storage, and electrical transmission), the sum of (i) the Utility’s estimated earning rate base for such component, times (ii) the equity percentage of the Utility’s authorized capital
        structure, times (iii) the Utility’s authorized rate of return on equity for such component, less (b) the projected post-tax difference in interest expense or
        preferred dividends for the entire company and the authorized interest expense or preferred dividends expected to be collected in rates, less (c) the amount of the Utility’s post-tax annual contribution to
        the Go-Forward Wildfire Fund.

      

      

      
        20

        
          

      

      

      

      “Premium Clawback Event” shall mean (i) the date that the Backstop Party terminates this Backstop Commitment Letter, or (ii) the date that PG&E terminates the Backstop
        Commitment Letter pursuant to Section 6(c) or 6(d) of the Backstop Commitment Letter.  Notwithstanding the foregoing, a Special Premium Clawback Event shall not constitute a “Premium Clawback Event”.

      

      

      “Prior Commitment Letter” means any equity backstop commitment letter executed by the Company on either November 16, 2019 or December 6, 2019.

      

      

      “Section 382” means Section 382 of the Code, or any successor provision or replacement provision.

      

      

      “Special Premium Clawback Event” means the date that the Backstop Party terminates this Backstop Commitment Letter pursuant to either Section 5(l) or Section 11(c).

      

      

      “Tax Benefits” means the difference between (a) the income taxes actually paid by the Reorganized Utility and (b) the income taxes that the Reorganized Utility would have paid
        to the taxing authorities for such taxable year if the net operating losses of the Utility and any deductions arising from the payment of Wildfire Claims and Subrogation Claims were not available.

      

      

      “Tax Receivable Agreement” means an agreement between the Reorganized Utility and the Backstop TBM Trust pursuant to which the Reorganized Utility agrees to deposit cash into
        the Backstop TBM Trust in an amount equal to all Tax Benefits arising after the first $1.350 billion of Tax Benefits starting with fiscal year 2020.

      

      

      “Tort Claimants RSA” means that Restructuring Support Agreement dated as of December 6, 2019 among the Debtors, the Shareholder Proponents, the Official Committee of Tort
        Claimants, and the law firms representing holders of fire victim claims that are signatories thereto.

      

      

      “Treasury Regulations” means final, temporary and proposed tax regulations promulgated under the Code, as amended.

       

      

       

      

      
        21

        
          

      

       

      

      
        Schedule 1

        

        

        Backstop Commitment Letters

        

        

        

        

        	
                Backstop Party

              	
                Backstop Commitment Amount 

                (rounded to the nearest cent)

              
	
                BG Backstop Partners, L.L.C.

              	
                $1,500,000,000.00

              
	
                GoldenTree Asset Management LP, on behalf of certain funds and accounts for which it serves as investment advisor

              	
                $1,150,000,000.00

              
	
                Pentwater Capital Management LP, on behalf of certain of its managed funds

              	
                $777,777,777.77

              
	
                Appaloosa LP, on behalf of the funds for which it acts as investment adviser

              	
                $750,000,000.00

              
	
                Anchorage Capital Master Offshore, Ltd.

              	
                $575,000,000.00

              
	
                Attestor Value Master Fund LP

              	
                $250,000,000.00

              
	
                MFN Partners, LP

              	
                $500,000,000.00

              
	
                Redwood Drawdown Master Fund II, L.P.

              	
                $140,145,104.00

              
	
                Redwood Master Fund, Ltd.

              	
                $359,854,896.00

              
	
                Abrams Capital Partners I, L.P.

              	
                $16,845,681.82

              
	
                Abrams Capital Partners II, L.P.

              	
                $253,401,136.36

              
	
                Whitecrest Partners, LP

              	
                $29,753,181.82

              
	
                Knighthead Capital Management, LLC, solely on behalf of certain funds and accounts it manages and/or advises

              	
                $400,000,000.00

              
	
                Centerbridge Credit Partners Master, L.P.

              	
                $243,773,573.00

              
	
                Centerbridge Special Credit Partners III, L.P.

              	
                $81,226,427.00

              
	
                Blackbird Bay I LLC

              	
                $139,700,000.00

              
	
                Blackbird Bay II LLC

              	
                $160,300,000.00

              
	
                Redwood IV Finance 1, LLC

              	
                $60,000,000.00

              
	
                TAO Finance 1, LLC

              	
                $140,000,000.00

              
	
                Stonehill Capital Management, LLC, solely on behalf of certain funds and accounts it manages and/or advises

              	
                $150,000,000.00

              
	
                Soros Fund Management LLC, solely on behalf of certain funds it manages and/or advises

              	
                $330,000,000.00

              
	
                Silver Point Capital Fund, L.P.

              	
                $115,070,377.67

              
	
                Silver Point Capital Offshore Master Fund, L.P.

              	
                $195,357,498.15

              
	
                SPCP Access Holdings, LLC

              	
                $40,142,005.00

              
	
                SPCP Institutional Group, LLC

              	
                $79,430,119.19

              
	
                Cyrus Capital Partners, L.P., in its capacity as investment manager to and on behalf of certain of its managed funds

              	
                $250,000,000.00

              

        

        

        
          
            

        

        
        

        

        	
                First Pacific Advisors, LP, on behalf of certain funds and accounts it manages

              	
                $250,000,000.00

              
	
                Steadfast Capital, L.P.

                American Steadfast, L.P.

                Steadfast International Master Fund Ltd.

              	
                $250,000,000.00

              
	
                HBK Master Fund L.P.

              	
                $220,000,000.00

              
	
                Monarch Alternative Capital LP, on behalf of its advisory clients and/or related entities

              	
                $100,000,000.00

              
	
                SteelMill Master Fund LP

              	
                $200,000,000.00

              
	
                Owl Creek I, L.P.

              	
                $7,282,543.37

              
	
                Owl Creek II, L.P.

              	
                $53,450,796.26

              
	
                Owl Creek Overseas Master Fund, Ltd.

              	
                $108,323,077.15

              
	
                Owl Creek SRI Master Fund, Ltd.

              	
                $5,943,583.22

              
	
                Owl Creek Credit Opportunities Master Fund, L.P.

              	
                $50,000,000.00

              
	
                Glendon Capital Management L.P.

              	
                $132,000,000.00

              
	
                ValueAct Capital Management, L.P., solely on behalf of certain funds and accounts it manages and/or advises

              	
                $150,000,000.00

              
	
                The Mangrove Partners Master Fund, Ltd.

              	
                $125,000,000.00

              
	
                683 Capital Partners, LP

              	
                $105,000,000.00

              
	
                Leonard Ellis

              	
                $10,000,000.00

              
	
                Governors Lane Master Fund LP

              	
                $100,000,000.00

              
	
                Nokota Capital Master Fund, LP

              	
                $100,000,000.00

              
	
                Caspian Capital LP, on behalf of its advisee funds

              	
                $90,000,000.00

              
	
                Nut Tree Master Fund, LP

              	
                $100,000,000.00

              
	
                AG Super Fund Master, L.P.

                AG Cataloochee, L.P.

                AG MM, L.P.

                AG Corporate Credit Opportunities Fund, L.P.

              	
                $80,000,000.00

              
	
                Solel Capital Partners Master Fund, L.P.

              	
                $75,000,000.00

              
	
                Brigade Capital Management, LP, solely on behalf of certain funds and accounts it manages and/or advises

              	
                $40,000,000.00

              
	
                Columbus Hill Capital Management, L.P., solely on behalf of certain funds and accounts it manages and/or advises

              	
                $40,000,000.00

              
	
                Serengeti Asset Management, LP, on behalf of its managed funds and accounts

              	
                $40,000,000.00

              
	
                Taal Capital Management LP

              	
                $40,000,000.00

              
	
                CSS, LLC

              	
                $40,000,000.00

              
	
                Whitefort Capital Master Fund, LP

              	
                $42,000,000.00

              
	
                Zoe Partners, LP

              	
                $30,000,000.00

              
	
                Irvin Schlussel

              	
                $2,500,000.00

              
	
                Aryeh Master Fund, LP

              	
                $32,500,000.00

              

        

        

        
          2

          
            

        

        

        

        	
                GCM Grosvenor Special Opportunities Master Fund, Ltd

              	
                $25,000,000.00

              
	
                Incline Global Management LLC

              	
                $25,000,000.00

              
	
                Lightstone Parent LLC

              	
                $25,000,000.00

              
	
                Madison Avenue International LP

              	
                $25,000,000.00

              
	
                Tyndall Partners, L.P.

              	
                $10,000,000.00

              
	
                Route One Investment Company, L.P.

              	
                $25,000,000.00

              
	
                Jefferies LLC

              	
                $25,000,000.00

              
	
                Latigo Partners, LP; on behalf of its managed accounts and affiliated entities

              	
                $20,000,000.00

              
	
                Steel Canyon Partners, LP

              	
                $8,000,000.00

              
	
                BHBL, LLC

              	
                $12,500,000.00

              
	
                Dryden Capital, LLC solely on behalf of certain funds and accounts it manages and/or advises

              	
                $3,250,000.00

              
	
                D. E. Shaw Galvanic Portfolios, L.L.C.

              	
                $149,405,030.42

              
	
                D. E. Shaw Kalon Portfolios, L.L.C.

              	
                $105,619,498.84

              
	
                York Capital Management Global Advisors, LLC, on behalf of certain funds and/or accounts managed or advised by it or its affiliates

              	
                $87,436,981.46

              
	
                Lord, Abbett & Co. LLC

              	
                $67,144,315.35

              
	
                Newtyn Management LLC, on behalf of its advisee funds and members

              	
                $40,075,283.17

              
	
                Brookdale International Partners, L.P.

              	
                $13,115,547.22

              
	
                Brookdale Global Opportunity Fund

              	
                $8,743,698.15

              
	
                Tudor Trading I L.P.

              	
                $8,795,607.30

              
	
                Tudor Riverbend Crossing Partners Portfolio Ltd.

              	
                $2,134,015.39

              
	
                New Generation Limited Partnership

              	
                $1,890,824.72

              
	
                New Generation Turnaround Fund (Bermuda) L.P.

              	
                $3,289,816.43

              
	
                Little Oak Asset Management, LLC

              	
                $1,092,962.27

              
	
                Schultze Master Fund, Ltd.

              	
                $728,641.51

              
	
                Total

              	
                $12,000,000,000.00*

              

        

        

        * Does not reflect rounding of individual commitments

      

      

    

    3Exhibit 10.2

      

      

      
        Execution Version

        

        

        	
                JPMORGAN CHASE BANK, N.A.

              	
                BANK OF AMERICA, N.A.

              
	
                383 Madison Avenue

              	
                BofA SECURITIES, INC.

              
	
                New York, NY 10179

              	
                One Bryant Park

              
	 	
                New York, NY 10036

              
	 	 
	
                BARCLAYS

              	
                CITIGROUP GLOBAL MARKETS INC.

              
	
                745 Seventh Avenue

              	
                388 Greenwich Street

              
	
                New York, NY 10019

              	
                New York, NY 10013

              
	 	 
	
                GOLDMAN SACHS BANK USA

              	
                BNP PARIBAS

              
	
                GOLDMAN SACHS LENDING PARTNERS LLC

              	
                787 Seventh Avenue

              
	
                200 West Street

              	
                New York, New York 10019

              
	
                New York, NY 10282

              	 
	 	 
	
                CREDIT SUISSE AG, CAYMAN ISLANDS

              	
                MORGAN STANLEY BANK, N.A.

              
	
                BRANCH

              	
                1585 Broadway

              
	
                Eleven Madison Avenue

              	
                New York, New York 10036

              
	
                New York, New York 10010

              	 
	 	 
	
                MUFG UNION BANK, N.A.

              	
                WELLS FARGO BANK, NATIONAL

              
	
                1221 Avenue of the Americas

              	
                ASSOCIATION

              
	
                New York, NY 10020

              	
                550 S Tryon St.

              
	 	
                Charlotte, NC 28202

              
	 	 
	
                MIZUHO BANK, LTD.

              	 
	
                1251 Avenue of the Americas

              	 
	
                New York, NY 10020

              	 

        

        

        

        

        PERSONAL AND CONFIDENTIAL

        

        

        December 20, 2019

        

        

        PG&E Corporation

        Pacific Gas and Electric Company

        77 Beale Street

        P.O. Box 77000

        San Francisco, California 94177

        Attention:          Nicholas M. Bijur

        

        

        PG&E Corporation

        Amendment No. 2 to Commitment Letter

        

        

        Ladies and Gentlemen:

        

        

        Reference is made to that certain Commitment Letter, dated as of October 4, 2019 (together with the annexes thereto, as supplemented by that certain Joinder Letter dated as of
          October 28, 2019, that certain Amendment No. 1 to Commitment Letter dated as of November 18, 2019, that certain Joinder Letter dated as of December 2, 2019 and as further amended from time to time in accordance with the terms thereof, the “Commitment Letter”), between PG&E Corporation, a California corporation (“PG&E”) (together with any domestic entity formed
          to hold all of the assets of PG&E upon emergence from bankruptcy, the “Borrower”), Pacific Gas and Electric Company, a California corporation (or any domestic entity formed to hold
          all of the assets of Pacific Gas and Electric Company upon emergence from bankruptcy, the “Utility” and together with PG&E, the “Debtors”
          or “you”), JPMorgan Chase Bank, N.A. (“JPMorgan”), Bank of America, N.A. (“BANA”), BofA Securities, Inc. (or any of its designated affiliates, “BofA”, and together with BANA, “Bank of
            America”), Barclays Bank PLC (“Barclays”), Citigroup Global Markets Inc. on behalf of Citi (as defined below), Goldman Sachs Bank USA (“GS Bank”) and Goldman Sachs Lending Partners LLC (“GSLP”, and together with GS Bank, “Goldman Sachs”)

          (JPMorgan, Bank of America, Barclays, Citi and Goldman Sachs, collectively, the “Initial Commitment Parties”) and BNP Paribas (“BNP”),

          Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”), Morgan Stanley Bank, N.A. (“Morgan Stanley”), MUFG Union Bank, N.A.
          (“MUFG”), Wells Fargo Bank, National Association (“Wells Fargo”) and Mizuho Bank, Ltd. (“Mizuho”, collectively with BNP, Credit Suisse, Morgan Stanley, MUFG, Wells Fargo and the Initial Commitment Parties, the “Commitment Parties” , “we” or “us”), regarding a $7,000 million senior unsecured bridge facility defined therein as the Facility and the related
          transactions described therein. “Citi” shall mean Citigroup Global Markets Inc., Citibank N.A., Citicorp USA, Inc., Citicorp North America, Inc. and/or any of their affiliates as any of
          them shall determine to be appropriate to provide the services contemplated herein. Capitalized terms used but not defined herein are used with the meanings assigned to them in the Commitment Letter.

        

        

        
          
            

        

        
        

        

        

        

        Each party to this Amendment No. 2 to Commitment Letter (this “Amendment”) hereby agrees that the Commitment Letter is hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in Schedule I hereto. The Commitment Letter shall be deemed to be replaced in its entirely by the Commitment Letter modified to reflect the terms set forth in Schedule I hereto, and each person party hereto
            as a Commitment Party shall be the sole Commitment Parties under the Commitment Letter on the date hereof after giving effect to this Amendment, and shall have and hereby reaffirm their commitments under the Commitment Letter set forth in
            Schedule II to the Commitment Letter, subject to the terms and conditions set forth in the Commitment Letter as amended by this Amendment.

        

        

        Each party hereto agrees to maintain the confidentiality of this Amendment and the terms hereof, subject to the confidentiality provisions contained in the Commitment Letter. The
          provisions of the third paragraph of Section 9 of the Commitment Letter are incorporated herein, mutatis mutandis, as if the references to the Commitment Letter were to this Amendment. Each of the parties hereto (for itself and its affiliates)
          (a) waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to the Commitment Letter, this Amendment,
          or the transactions contemplated thereby or hereby, in any such New York State court or in any such Federal court and (b) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or
          proceeding in any such court.

        

        

        Except as specifically amended by this Amendment, the Commitment Letter shall remain in full force and effect. This Amendment shall be construed in connection with and form part
          of the Commitment Letter, and any reference to the Commitment Letter shall be deemed to be a reference to the Commitment Letter as amended by this Amendment. Neither this Amendment nor the Commitment Letter (including the attachments hereto and
          thereto) may be amended or any term or provision hereof or thereof waived or modified except by an instrument in writing signed by each of the parties hereto. This Amendment may be executed in any number of counterparts, each of which when
          executed will be an original, and all of which, when taken together, will constitute one agreement. Delivery of an executed counterpart of a signature page to this Amendment by telecopier, facsimile or other electronic transmission (e.g.,
          “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart thereof.

        

        

        [Remainder of page intentionally left blank]

        

        

        
          2

          
            

        

        

        

        

        

        We are pleased to have been given the opportunity to assist you in connection with the financing for the Transactions.

         

        

        
          	 	Very truly yours,

                	 
	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

                  	 
	 	 	 	 
	
                  

                  

                	
                  By: 

                	/s/ Sandeep S. Parihar	 
	 	 	Name:	Sandeep S. Parihar

                	 
	 	 	Title:	Executive Director

                	 
	 	 	 	 

        

         

        

         

        

         

        

         

        

         

        

         

        

         

        

         

        

         

        

         

        

        [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)]

        

         

        

        
          
            

        

         

        

        
           

          

          
            	 	BofA SECURITIES, INC.

                    	 
	 	 	 	 
	
                    

                    

                  	
                    By: 

                  	/s/ B. Timothy Keller	 
	 	 	Name:	B. Timothy Keller

                  	 
	 	 	Title:	Managing Director

                  	 
	 	 	 	 

          

           

          
            
              
                	 	BANK OF AMERICA, N.A.

                      	 
	 	 	 	 
	
                        

                        

                      	
                        By: 

                      	/s/ Maggie Halleland 	 
	 	 	Name:	Maggie Halleland 	 
	 	 	Title:	Vice President 	 
	 	 	 	 

              

               

               

              

               

              

               

              

               

              

               

              

               

              

            

             

            

            

              
                 

              

            

          

        

        

        
           

        

         [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

         

        

        
          
            

        

         

        

        
           

          

          
            	 	BARCLAYS BANK PLC

                    	 
	 	 	 	 
	
                    

                    

                  	
                    By: 

                  	/s/ Sydney G. Dennis	 
	 	 	Name:	Sydney G. Dennis

                  	 
	 	 	Title:	Director

                  	 
	 	 	 	 

          

           

           

          

           

          

           

          

           

          

           

          

           

          

           

          

           

          

           

          

          [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

        

         

        

        
          
            

        

        
           

          

          
            	 	CITIGROUP GLOBAL MARKETS INC.

                    	 
	 	 	 	 
	
                    

                    

                  	
                    By: 

                  	/s/ Richard D. Rivera	 
	 	 	Name:	Richard D. Rivera

                  	 
	 	 	Title:	Authorized Signatory

                  	 
	 	 	 	 

          

           

           

          

           

          

           

          

           

          

           

          

           

          

           

          

           

          

           

          

          [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

        

         

        

        
          
            

        

        
           

          

          
            	 	GOLDMAN SACHS BANK USA

                    	 
	 	 	 	 
	
                    

                    

                  	
                    By: 

                  	/s/ Charles D. Johnston	 
	 	 	Name:	Charles D. Johnston

                  	 
	 	 	Title:	Authorized Signatory

                  	 
	 	 	 	 

          

           

        

        
          
            	 	GOLDMAN SACHS LENDING PARTNERS LLC

                    	 
	 	 	 	 
	
                    

                    

                  	
                    By: 

                  	/s/ Charles D. Johnston	 
	 	 	Name:	Charles D. Johnston

                  	 
	 	 	Title:	Authorized Signatory

                  	 
	 	 	 	 

          

           

           

          

           

          

           

          

           

          

           

          

           

          

           

          

           

          

           

          

          [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

        

         

        

        
          
            

        

        
           

          

          
            	 	BNP PARIBAS

                    	 
	 	 	 	 
	
                    

                    

                  	
                    By: 

                  	/s/ Denis O'Meara	 
	 	 	Name:	Denis O'Meara

                  	 
	 	 	Title:	Managing Director

                  	 
	 	 	 	 

          

           

        

        
          	 	 	 	 
	
                  

                  

                	
                  By: 

                	/s/ Ravina Advani	 
	 	 	Name:	Ravina Advani

                	 
	 	 	Title:	Managing Director

                	 
	 	 	 	 

        

         

         

        

         

        

         

        

         

        

         

        

         

        

         

        

         

        

         

        

        [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

         

        

        
          
            

        

         

        

        
           

          

          
            	 	
                    CREDIT SUISSE AG, CAYMAN ISLANDS

                      

                    BRANCH

                      

                  	 
	 	 	 	 
	
                    

                    

                  	
                    By: 

                  	/s/ Mikhail Faybusovich	 
	 	 	Name:	Mikhail Faybusovich

                  	 
	 	 	Title:	Authorized Signatory

                  	 
	 	 	 	 

          

           

        

        
          
            
              	 	 	 	 
	
                      

                      

                    	
                      By: 

                    	/s/ SoVonna Day-Goins	 
	 	 	Name:	SoVonna Day-Goins

                    	 
	 	 	Title:	Authorized Signatory	 
	 	 	 	 

            

             

             

            

             

            

             

            

             

            

             

            

             

            

             

            

             

            

             

            

            [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

          

           

        

        
          
            

        

        

        

        
          
             

            

            
              	 	MORGAN STANLEY BANK, N.A.

                      	 

                    
	 	 	 	 
	
                      

                      

                    	
                      By: 

                    	/s/ Chance Moreland	 
	 	 	Name:	Chance Moreland

                    	 
	 	 	Title:	Authorized Signatory

                    	 
	 	 	 	 

            

             

             

            

             

            

             

            

             

            

             

            

             

            

             

            

             

            

             

            

            [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

             

            

            
              
                

            

          

        

        

        

        
          
            
               

              

              
                	 	MUFG UNION BANK, N.A.

                        	 
	 	 	 	 
	
                        

                        

                      	
                        By: 

                      	/s/ Viet-Linh Fujitaki	 
	 	 	Name:	Viet-Linh Fujitaki

                      	 
	 	 	Title:	Vice President

                      	 
	 	 	 	 

              

               

               

              

               

              

               

              

               

              

               

              

               

              

               

              

               

              

               

              

              [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

               

              

              
                
                  

              

            

          

          
            
              
                 

                

                
                  	 	
                          WELLS FARGO BANK, NATIONAL

                            

                          ASSOCIATION

                            

                        	 
	 	 	 	 
	
                          

                          

                        	
                          By: 

                        	/s/ Gregory R. Gredvig	 
	 	 	Name:	Gregory R. Gredvig

                        	 
	 	 	Title:	Director

                        	 
	 	 	 	 

                

                 

                 

                

                 

                

                 

                

                 

                

                 

                

                 

                

                 

                

                 

                

                 

                

                [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

                 

                

                
                  
                    

                

              

            

            
              
                
                   

                  

                  
                    	 	MIZUHO BANK, LTD.

                            	 
	 	 	 	 
	
                            

                            

                          	
                            By: 

                          	/s/ Raymond Ventura	 
	 	 	Name:	Raymond Ventura

                          	 
	 	 	Title:	Managing Director

                          	 
	 	 	 	 

                  

                   

                   

                  

                   

                  

                   

                  

                   

                  

                   

                  

                   

                  

                   

                  

                   

                  

                   

                  

                  [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)] 

                   

                  

                  
                    
                      

                  

                

              

              
                
                  
                     

                    

                     ACCEPTED AND AGREED AS OF

                      

                    THE DATE FIRST WRITTEN ABOVE:

                     

                    

                    
                      	PG&E CORPORATION	 
	 	 	 
	
                              By: 

                            	/s/ Nicholas M. Bijur	 
	 	Name:	Nicholas M. Bijur

                            	 
	 	Title:	Vice President and Treasurer

                            	 
	 	 	 

                    

                     

                  

                

                
                  
                    
                      
                         

                        

                        
                          	PACIFIC GAS AND ELECTRIC COMPANY	 
	 	 	 
	
                                  By: 

                                	/s/ Nicholas M. Bijur	 
	 	Name:	Nicholas M. Bijur

                                	 
	 	Title:	Vice President and Treasurer

                                	 
	 	 	 

                        

                         

                         

                        

                         

                        

                         

                        

                         

                        

                         

                        

                         

                        

                         

                        

                         

                        

                         

                        

                        [Signature Page to Amendment No. 2 to Commitment Letter (PG&E)]

                        

                      

                    

                    

                  

                

              

            

          

        

        

        

        
          
            

        

        

        

        

        

        SCHEDULE I

        

        

        [Attached]

        

        

        

        

        
          
            

        

        
        

        

        Execution Version

        

        

        	
                JPMORGAN CHASE BANK, N.A.

              	
                BANK OF AMERICA, N.A.

              
	
                383 Madison Avenue

              	
                BofA SECURITIES, INC.

              
	
                New York, New York 10179

              	
                One Bryant Park

              
	 	
                New York, NY 10036

              
	 	 
	
                BARCLAYS

              	
                CITIGROUP GLOBAL MARKETS INC.

              
	
                745 Seventh Avenue

              	
                388 Greenwich Street

              
	
                New York, NY 10019

              	
                New York, NY 10013

              
	 	 
	
                GOLDMAN SACHS BANK USA

              	 
	
                GOLDMAN SACHS LENDING PARTNERS LLC

              	 
	
                200 West Street

              	 
	
                New York, NY 10282

              	 

        

        

        

        

        PERSONAL AND CONFIDENTIAL

        

        

        October 4, 2019

        

        

        PG&E Corporation

        Pacific Gas and Electric Company

        77 Beale Street

        P.O. Box 77000

        San Francisco, California 94177

        Attention:          Nicholas M. Bijur

        

        

        

        

        

        

        PG&E Corporation

        

        

        Commitment Letter

        

        

        Ladies and Gentlemen:

        

          Reference is hereby made to (i) the Chapter 11 bankruptcy cases, jointly administered under lead case number 19-30088 (the “Chapter 11 Cases”), currently pending before the United States Bankruptcy Court for the Northern District of California (the “Bankruptcy Court”), in which PG&E Corporation, a California corporation (or any domestic entity formed to hold all of the assets of PG&E upon emergence from bankruptcy, the “Borrower”) and Pacific Gas and Electric Company, a California corporation (the “Utility”) (together with any domestic
              entity formed to hold all of the assets of Pacific Gas and Electric Company upon emergence from bankruptcy, the “Utility” and together with
              PG&E, the “Debtors” or “you”),
              are debtors and debtors in possession and (ii) the first amendedjoint Chapter 11 plan of reorganization filed by the Debtors and the shareholder proponents with the
              Bankruptcy Court on September 23December 12, 2019 at
              ECF No. 39665101 (as may be further amended, modified
              or otherwise changed in accordance with this Commitment Letter, the “Plan”) to implement the terms and conditions of the reorganization of
              the Debtors as provided therein. Capitalized terms used and not defined in this letter (together with Annexes A and B hereto, this “Commitment Letter”) have the meanings assigned to them in Annexes A and B hereto as the context may require. JPMorgan, Bank of America, N.A. (“BANA”), BofA Securities, Inc. (or any of its designated affiliates, “BofA”, and together with BANA, “Bank of America”), Barclays Bank PLC (“Barclays”), Citigroup Global
              Markets Inc. on behalf of Citi (as defined below), Goldman Sachs Bank USA (“GS Bank”), Goldman Sachs Lending Partners LLC (“GSLP”, and together with GS Bank, “Goldman Sachs”)

              and any other Lenders that become parties to this Commitment Letter as additional “Commitment Parties” as provided in Section 3 hereof (including those entities
                listed in Schedule I attached hereto) are referred to herein, collectively, as the “Commitment Parties,” “we” or “us.”

        

        

        

        
          1

          
            

        

        

        

        You have informed us that, in connection with the consummation of the transactions contemplated by the Plan, the Borrower intends to (a) enter into a new revolving credit facility in an aggregate
          committed amount of $500 million (the “Revolving Credit Facility”) and (b)(i) issue senior secured notes pursuant to a registered public offering or Rule 144A or other private placement (the “Notes”), (ii) incur term loans under a senior secured term loan facility (the “Term Loan Facility” and the loans thereunder, the “Term
            Loans” and, together with the Notes, collectively, the “Permanent Financing”) or (iii) issue or incur a combination of the foregoing. In connection therewith, the Borrower desires to enter into a
          $7,000 million senior unsecured bridge loan facility (the “Facility”) having the terms and subject to the conditions set forth herein and in the Annexes hereto, to be available in the event that the
          Permanent Financing is not issued and/or incurred on or prior to the Closing Date (as defined in Annex A) for any reason.

        

        

        The transactions described in the preceding paragraphs are collectively referred to herein as the “Transactions.”

        

        

        For purposes of this Commitment Letter, “Citi” shall mean Citigroup Global Markets Inc., Citibank N.A., Citicorp USA, Inc., Citicorp North America, Inc. and/or any of their affiliates as any of them
          shall determine to be appropriate to provide the services contemplated herein.

          

        

        1.          Commitments; Titles and Roles.

        

        

        (a) (i) Each of JPMorgan, BofA, Barclays, Citi and GS Bank is pleased
            to confirm its agreement to act, and you hereby appoint each of JPMorgan, BofA, Barclays, Citi and GS Bank to act, as a joint lead arranger and joint bookrunner (in such capacities, the “Arrangers”) and, except in the case of JPMorgan, co-syndication agent in connection with the Facility and (ii) each other Commitment Party accepts, on its
              own behalf or on behalf of its designated affiliate, the title(s) agreed to by the Borrower in writing and set forth adjacent to its name on Schedule I attached hereto under the heading “Title(s)”; (b)
            JPMorgan is pleased to confirm its agreement to act, and you hereby appoint JPMorgan to act, as administrative agent (the “Administrative Agent”) for
            the Facility; and (c) each of JPMorgan, BANA, Barclays, Citi, GS Bank and GSLP (in such capacity, the “Initial Lenders”) and each other Commitment Party is pleased to commit, and hereby commits, on a several and not joint basis, to provide the Borrower 25%, 18.75%, 18.75%, 18.75%, 15% and 3.75%, respectively,a portion of the aggregate
            principal amount of the Facility equal to the principal amount set forth adjacent to its name on Schedule II attached hereto under the heading “Commitment” on the terms contained in this Commitment Letter and subject to the conditions expressly set forth in Annex B hereto; provided that the amount of the Facility shall be automatically reduced as provided under “Mandatory Prepayments and Commitment Reductions” in Annex A hereto with any such reduction to be applied pro rata among the Initial Lenders. It is
            further agreed that JPMorgan will appear on the top left (and the Arrangers, other than JPMorgan, will appear in alphabetical order immediately to the right thereof) of the cover page of any marketing materials for the Facility and will hold
            the roles and responsibilities conventionally understood to be associated with such name placement. Our fees for our commitment and for services related to the Facility are set forth in a separate fee letter (the “Fee Letter”) entered into by you and the Commitment Parties on the date hereof. It is agreed that no other agents, co-agents, arrangers, co-arrangers or bookrunners
            will be appointed and no other titles will be awarded in connection with the Facility, and no compensation will be paid in order to obtain such person’s commitment to participate in the Facility (other than the compensation expressly
            contemplated by this Commitment Letter and the Fee Letter) in connection with the Facility, unless the Arrangers and you shall so agree; provided, however, that you may award agent (other than administrative agent and co-syndication agent) and
            similar titles to any additional Commitment Party that becomes a Commitment Party hereunder in accordance with the second paragraph of Section 3 hereof; provided, further, for the avoidance of doubt, no additional Commitment Party shall receive
            a bookrunner title.

        

        

        
          2

          
            

        

        

        

        You agree that JPMorgan may perform its responsibilities hereunder through its affiliate, J.P. Morgan Securities LLC.

        

        

        2.          Conditions Precedent.

        

        

        Notwithstanding anything to the contrary in this Commitment Letter, the Fee Letter or any other agreement or other undertaking concerning the financing of the Transactions, (a) the Commitment
          Parties’ commitments and agreements hereunder with respect to the Facility are subject solely to the satisfaction or waiver of the conditions expressly set forth in Annex B hereto and (b) the terms of the Facility Documentation shall be in a form
          such that they do not impair the availability of the Facility on the Closing Date if the conditions described in the immediately preceding clause (a) are satisfied.

        

        

        3.          Syndication.

        

        

        The Arrangers reserve the right, in accordance with the provisions of this Section 3, prior to or after the Closing Date, to syndicate the Facility to the Lenders (as defined in Annex
            A). The syndication of the Facility, including determinations as to the timing of offers to prospective Lenders, the selection of Lenders, the acceptance and final allocation of commitments, the awarding of titles or roles to any Lenders and
            the amounts offered and the compensation provided to each Lender from the amounts to be paid to the Arrangers pursuant to the terms of this Commitment Letter and the Fee Letter, will be conducted by the Arrangers in consultation with the
            Borrower. Notwithstanding the foregoing, during the period commencing on the date hereof and ending November 20, 2019 (the “Initial Syndication Period”),

            the Facility will be syndicated only to those financial institutions approved by you in writing prior to the date hereof or other financial institutions as may be approved by you in your sole discretion (such financial institutions, collectively, the “Approved Lenders”).
            Following the Initial Syndication Period, if and for so long as a Successful Syndication (as defined in the Fee Letter) has not been achieved, the syndication of the Facility shall be conducted by the Arrangers in consultation with the
            Borrower. Following the achievement of a Successful Syndication of the Facility, further assignments and commitments shall be in accordance with the section captioned “Assignments and Participations” in the Term Sheet attached hereto as Annex
            A.

        

        

        The aggregate commitments of the Commitment Parties with respect to the Facility shall be reduced dollar-for-dollar (and on a pro rata basis) by the amount of each commitment for the Facility
          received from additional Lenders selected in accordance with the preceding paragraph to the extent such Lender becomes (a) party to this Commitment Letter as an additional “Commitment Party” pursuant to a customary joinder agreement or other
          documentation reasonably satisfactory to the Arrangers and you (each, a “Joinder Agreement”) or (b) party to the Facility Documentation as a Lender; provided that
          any reduction of Goldman Sachs’s commitments under the Facility in accordance with the previous sentence or as a result of a reduction of the overall commitments of GSLP and GS Bank, each in its capacity as an Initial Lender, pursuant to the
          terms of this Commitment Letter shall be allocated between GSLP’s and GS Bank’s respective commitments as determined by GSLP and GS Bank in their sole discretion. Notwithstanding the Arrangers’ right to syndicate the Facility and receive
          commitments with respect thereto, and except as provided in the immediately preceding sentence, (i) no Commitment Party shall be relieved, released or novated from its obligations hereunder (including its obligation to fund the Facility on the
          Closing Date) in connection with any syndication, assignment or participation of the Facility, including its commitment in respect thereof, until after the initial funding of the Facility on the Closing Date has occurred, (ii) no assignment or
          novation shall become effective with respect to all or any portion of the Commitment Parties’ commitments in respect of the Facility until the initial funding of the Facility on the Closing Date and (iii) unless you otherwise agree in writing,
          each Commitment Party shall retain exclusive control over all rights and obligations with respect to its commitments in respect of the Facility, including all rights with respect to consents, modifications, supplements, waivers and amendments,
          until the initial funding of the Facility on the Closing Date has occurred.

        

        

        
          3

          
            

        

        

        

        To facilitate an orderly and successful syndication of the Facility, you agree that, until the earlier of (a) the achievement of a Successful Syndication (as defined in the Fee Letter)
            and (b) 60 days following the Closing Date (such earlier date, the “Syndication Date”), the Utility and the Borrower will not syndicate or issue,
            attempt to syndicate or issue or announce the syndication or issuance of any competing debt facility or any debt or equity security (other than common equity) of the Utility, the Borrower or any of their respective subsidiaries that would
            reasonably be expected to materially impair the primary syndication of the Facility, in each case without the prior written consent of the Arrangers (such consent not to be unreasonably withheld, delayed or conditioned), other than (i) the
            Facility, (ii) the Permanent Financing, (iii) the Revolving Credit Facility, (iv) incremental facilities under the Utility’s current debtor-in-possession credit agreement or any new debtor-in-possession facilities, in either case that are to be
            paid in full in cash at emergence from the Chapter 11 Cases, (v) securitization securities or facilities contemplated by the Plan, (vi) ordinary-course purchase money indebtedness, facility and equipment financings, other debt incurred in the
            ordinary course of business for capital expenditures and working capital purposes, financial leases or capital lease obligations, overdraft protection, ordinary course letter of credit facilities, hedging and cash management, and similar
            obligations, (vii) roll-over, “take-back” or reinstated debt that may be contemplated by the Plan and (viii) common and preferred equity issued in
            accordance with the Plan in satisfaction of claims.

        

        

        Without limiting your obligations to assist with the syndication efforts as set forth herein, it is understood that the Initial Lender’s
              commitmentCommitment Parties’ commitments hereunder isare not conditioned upon the syndication of, or receipt of commitments in respect of, the Facility and in no event shall the commencement or
            successful completion of syndication of the Facility constitute a condition to the availability of the Facility on the Closing Date.

        

        

        Until the Syndication Date, you agree to actively assist the Arrangers in achieving a syndication satisfactory to you and us. Such assistance shall include (a) your use of commercially
            reasonable efforts to ensure that the Arrangers’ syndication efforts benefit from your and your affiliates’ existing lending relationships, (b) your using commercially reasonable efforts to assist in the preparation of one or more information
            packages for the Facility in form and substance customary for transactions of this type regarding the business, operations, financial projections and prospects of the Borrower (after giving effect to the Transactions) (collectively, the “Confidential Information Memorandum”), (c) your using commercially reasonable efforts to obtain, as promptly as practicable prior to the launch of the syndication
            of the Facility, a Public Debt Rating for the Borrower from each of Moody’s Investor Services, Inc. (“Moody’s”) and Standard & Poor’s Financial
            Services LLC (“S&P”), in each case giving effect to the Transactions, (d) your executing and delivering one or more Joinder Agreements delivered to
            you in respect of prospective Lenders which are selected in accordance with the provisions of this Section 3, as soon as reasonably practicable following commencement of syndication of the Facility, (e) the presentation of one or more customary
            information packages for the Facility in format and content reasonably satisfactory to the Arrangers (collectively, the “Lender Presentation”) in a
            reasonable number of meetings at reasonable times and locations mutually agreed upon and (f) arranging for direct contact between senior management and representatives, with appropriate seniority and expertise, of the Borrower with prospective
            Lenders and participation of such persons in a reasonable number of meetings at reasonable times and locations mutually agreed upon. In connection with the Arrangers’ syndication Facility, the use of the proceeds thereof or any related
            transaction or any actual or prospective claim, litigation, investigation, arbitration or proceeding relating to any of the foregoing (including in relation to enforcing the terms of this paragraph) (each, a “Proceeding”), regardless of whether any indemnified person is a party thereto, whether or not such Proceedings are brought by you, your equity holders, affiliates, creditors or any
            other person, and to reimburse each indemnified person upon demand for reasonable, documented and invoiced out-of-pocket legal expenses of one primary firm of counsel, one regulatory counsel and one special bankruptcy
              counsel for all such indemnified persons, taken as a whole, and, if necessary, of a single firm of local counsel in each appropriate jurisdiction (which may include a single firm of special counsel
            acting in multiple jurisdictions) for all such indemnified persons, taken as a whole (and, in the case of an actual or perceived conflict of interest where the indemnified person affected by such conflict informs you of such conflict and
            thereafter retains its own counsel, of another firm of counsel for such affected indemnified person and, if necessary, of one regulatory counsel, one special bankruptcy
              counsel and a single firm of local counsel in each appropriate jurisdiction (which may include a single firm of special counsel acting in multiple jurisdictions) for such affected indemnified person)
            (the foregoing, the “Counsel Limitation”) or other reasonable, documented and invoiced out-of-pocket expenses incurred in connection with investigating
            or defending any of the foregoing; provided that the foregoing indemnity will not, as to any indemnified person, apply to losses, claims, damages, liabilities or
            related expenses to the extent they are found by a final, non-appealable judgment of a court of competent jurisdiction to (i) have arisen or resulted from the willful misconduct, bad faith or gross negligence of such indemnified person, (ii)
            have resulted from a claim brought by you or any of your subsidiaries against such indemnified person for material breach of such indemnified person’s obligations hereunder or (iii) have not resulted from an act or omission by you or any of
            your affiliates and have been brought by an indemnified person against any other indemnified person (other than any claims against any Commitment Party in its capacity or in fulfilling its role as an arranger or agent or any similar role
            hereunder, except to the extent such acts or omissions are determined by a court of competent jurisdiction by a final and non-appealable judgment to have constituted the gross negligence, bad faith or willful misconduct of such indemnified
            party in such capacity), and (b) to reimburse the Commitment Parties and their respective affiliates on demand for all out-of-pocket expenses (including due diligence expenses, syndication expenses, travel expenses, and reasonable fees, charges
            and disbursements of counsel) incurred in connection with the Facility and any related documentation (including this Commitment Letter, the Fee Letter and the definitive documentation relating to the Facility) or the administration, amendment,
            modification or waiver thereof. You acknowledge that we may receive a benefit, including without limitation, a discount, credit or other accommodation, from any of such counsel based on the fees such counsel may receive on account of their
            relationship with us including, without limitation, fees paid pursuant hereto. None of the indemnified persons or you shall have any liability for any special, indirect, consequential or punitive damages in connection with activities related to
            the Facility or the Transactions; provided that nothing contained in this sentence shall limit your indemnity and reimbursement obligations to the extent set
            forth in this paragraph.

        

        

        
          4

          
            

        

        
        

        

        No indemnified person shall be liable for any damages arising from the use by others of Information or other materials obtained through electronic, telecommunications or other information
          transmission systems, including an Platform or otherwise via the internet, and you agree, to the extent permitted by applicable law, to not assert any claims against any indemnified person with respect to the foregoing.

        

        

        You shall not, without the prior written consent of an indemnified person (which consent shall not be unreasonably withheld, conditioned or delayed), effect any settlement of any
            pending or threatened Proceedings in respect of which indemnity could have been sought hereunder by such indemnified person unless such settlement (a) such settlement includes an unconditional release of such indemnified person in form and substance reasonably satisfactory
            to such indemnified person from all liability on claims that are the subject matter of such Proceedings and (b) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any indemnified
            person or any injunctive relief or from the rights and obligations of the parties pursuant to this Commitment Letter, and none of such rights and obligations under such other agreements shall be affected by any Commitment Party’s performance or
            lack of performance of services hereunder. You hereby agree that each Commitment Party may render its services under this Commitment Letter notwithstanding any actual or potential conflict of interest presented by the foregoing, and you agree
            that you will not claim any conflict of interest relating to the relationship among such Commitment Party and you and your affiliates in connection with the commitments and services contemplated hereby, on the one hand, and the exercise by any
            Commitment Party or any of its affiliates of any of their rights and duties under any credit agreement or other agreement (including the Funded Debt Documents and the DIP Facility Credit Agreement) on the other hand.

        

        

        
          7

          
            

        

        
        

        

        In addition, please note that the Commitment Entities do not provide accounting, tax or legal advice.

        

        

        9.          Miscellaneous.

        

        

        Neither this Commitment Letter nor the Fee Letter may be amended or any term or provision hereof or thereof waived or otherwise modified except by an instrument in writing signed by each of the
          parties hereto or thereto, as applicable, and any term or provision hereof or thereof may be amended or waived only by a written agreement executed and delivered by all parties hereto or thereto.

        

        

        The provisions set forth under Sections 3, 4, 5, 7 and 8 hereof (in each case other than any provision therein that expressly terminates upon execution of the Facility Documentation),
            this Section 9 and the provisions of the Fee Letter will remain in full force and effect regardless of whether the Facility Documentation is executed and delivered, except that the provisions of Sections 3 and 4 shall not survive if the
            commitments and undertakings of the Commitment Parties are terminated prior to the effectiveness of the Facility; provided that (x) the foregoing
            provisions in this paragraph (other than with respect to the provisions set forth in the Fee Letter and under Sections 7, 8 and this Section 9 hereof, which will remain in full force and effect notwithstanding the expiration or termination of
            this Commitment Letter or the Commitment Parties’ respective commitments and agreements hereunder) shall be superseded in each case, to the extent covered thereby, by the applicable provisions contained in the Facility Documentation upon
            execution thereof and thereafter shall have no further force and effect and (y) the provisions of Sections 3 and 4 shall terminate on the Syndication Date (or, in the
              case of the second paragraph of Section 4, the Closing Date if later).

        

        

        Each of the parties hereto (for itself and its affiliates) agrees that any suit or proceeding arising in respect of this Commitment Letter or the Commitment Parties’ commitments
          or agreements hereunder or the Fee Letter will be tried exclusively in (i) subject to clause (ii)(B), until the Effective Date (as defined in the Plan) of the Plan, the Bankruptcy Court and (ii)(A) thereafter or (B) if the Bankruptcy Court
          refuses to accept, or the Bankruptcy Court or any appellate court from the Bankruptcy Court determines in a final, non-appealable order that the Bankruptcy Court does not have, jurisdiction, any Federal court of the United States of America
          sitting in the Borough of Manhattan or, if that court does not have subject matter jurisdiction, in any state court located in the City and County of New York, and each party hereby submits to the exclusive jurisdiction of, and to venue in, such
          court. Any right to trial by jury with respect to any action or proceeding arising in connection with or as a result of either the Commitment Parties’ commitments or agreements or any matter referred to in this Commitment Letter or the Fee Letter
          is hereby waived by the parties hereto (to the fullest extent permitted by applicable law). Each of the parties hereto (for itself and its affiliates) agrees that a final judgment in any such action or proceeding shall be conclusive and may be
          enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Service of any process, summons, notice or document by registered mail or overnight courier addressed to any of the parties hereto at the addresses
          above shall be effective service of process against such party for any suit, action or proceeding brought in any such court. This Commitment Letter and the Fee Letter and any claim, controversy or dispute arising hereunder or thereunder will be
          governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws.

        

        

        
          12

          
            

        

        

        

        10.          PATRIOT Act Notification.

        

        

        The Commitment Parties hereby notify the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”) and the requirements of 31 C.F.R. § 1010.230 (the “Beneficial Ownership Regulation”) the Commitment Parties and each Lender may be required to obtain,
          verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Commitment Parties and each Lender to identify the Borrower in accordance with
          the Patriot Act and the Beneficial Ownership Regulation. This notice is given in accordance with the requirements of the Patriot Act and is effective for the Commitment Parties and each Lender.

        

        

        11.          Acceptance and Termination.

        

        

        Each of the parties hereto agrees that this Commitment Letter is a binding and enforceable agreement with respect to subject matter contained herein, including an agreement to negotiate in good
          faith the Facility Documentation by the parties hereto in a manner consistent with this Commitment Letter, it being acknowledged and agreed that the commitments provided hereunder by the Commitment Parties are subject to the conditions expressly
          set forth in Annex B hereto.

        

        

        This Commitment Letter may be executed in any number of counterparts, each of which when executed will be an original, and all of which, when taken together, will constitute one agreement. Delivery
          of an executed counterpart of a signature page of this Commitment Letter by facsimile transmission or other electronic transmission (e.g., “pdf” or “tif”) will be effective as delivery of a manually executed counterpart hereof. This Commitment
          Letter and the Fee Letter are the only agreements that have been entered into among the parties hereto with respect to the Facility and set forth the entire understanding of the parties with respect thereto and supersede any prior written or oral
          agreements among the parties hereto with respect to the Facility.

        

        

        The Commitment Parties’ commitments and agreements hereunder will terminate upon the first to occur of (i) the execution and delivery of the Facility Documentation by each of the
            parties thereto, (ii) the Effective Date of the Plan without using the loans under the Facility, (iii) 11:59 p.m., New York City time, on (A) June 30, 2020, if the Confirmation Order has not been entered prior to such time or (B) August 29,
            2020, if the Closing Date has not occurred prior to such time, (iv)(A) the Plan or the Approval Order is amended or modified or any condition contained therein waived, in a manner that is adverse to the Commitment Parties in their capacities as
            such, in either case without the consent of (I) prior to the date that an additional “Commitment Party” becomes party to this Commitment Letter pursuant to a Joinder Agreement, the Commitment Parties
              party hereto on the date hereof (the “Initial Commitment Parties”) and (II) thereafter, the Administrative Agent and the Commitment Parties holding 66 2/3% of the commitments hereunder in respect of the Facility (clauses (I) and (II), collectively, the “the “Required Commitment Parties”) (such consent not to be unreasonably withheld,
            conditioned or delayed; provided that modifications to the Plan solely as a result of an increase in roll-over, “take-back” or reinstatement of any existing debt of the Debtors shall be deemed not to be adverse to the Commitment Parties for the
            purposes of this clause (A)), (B) any Plan Supplement or any Plan Document (each as defined in the Plan) that is adverse to the interests of the Commitment Parties in their capacities as such is filed or finalized without the consent of the
            Required Commitment Parties (such consent not to be unreasonably withheld, conditioned or delayed), (v) the Chapter 11 Case with respect to any Debtor is dismissed or converted to a proceeding under chapter 7 of the Bankruptcy Code, (vi) a
            trustee or examiner with enlarged powers (having powers beyond those set forth in section 1106(a)(3) and 1106(a)(4) of the Bankruptcy Code) is appointed with respect to any of the Debtors, (vii) there is in effect an order of a governmental
            authority of competent jurisdiction permanently restraining, enjoining or otherwise prohibiting the consummation of any of the transactions contemplated by the Plan, or any law, statute, rule, regulation or ordinance is adopted that makes
            consummation of the transactions contemplated by the Plan illegal or otherwise prohibited; (viii) the Bankruptcy Court shall not have entered an order approving the
              relief requested in the motion filed with the Bankruptcy Court authorizing the Borrower’s entry into and performance under this Commitment Letter, the Fee Letter and any related engagement letter (the
            “Approval Order”), in form and substance reasonably satisfactory to the Commitment Parties, on or before December 20, 2019January 31, 2020; (ix) the Debtors’ aggregate liability with respect to WildfireFire Claims (as defined in the Plan) is determined (whether (A) by the Bankruptcy Court (or the District Court to which the reference has been
            partially withdrawn for estimation purposes), (B) pursuant to an agreement between the Debtors and the holders of Wildfire ClaimsFire Claims that is subject to an order of the Bankruptcy Court approving such agreement, or (C) through a combination thereof) to exceed $18.925.5 billion (the “WildfireFire Claims Cap”); provided, however, that for purposes of this clause (ix), (1) any Wildfire Claim that the California Public Utilities Commission has approved or agreed to approve
              for recovery or pass through by the Utility shall not count in determining the Wildfire Claims Cap and (2) the Wildfire Claims Cap shall be increased by an amount equal to the amount of Wildfire Claims consisting of professional fees that the
              Bankruptcy Court (or the District Court to which the reference has been partially withdrawn for estimation purposes) determines to be reasonable; (x) (A) the occurrence of one or more wildfires
            within PG&E’s service area after the Petition Date (as defined in the Plan) and prior to January 1, 2020 that is asserted by any person to arise out of the Debtors’ activities and that destroys or damages more than 500 dwellings or
            commercial structures (“Structures”); provided, however, that any notice of termination under this clause (x)(A) must be given on or before January 15, 2020the entry of the Approval Order, or (B) the occurrence of one or more wildfires on or after January 1, 2020 destroying or damaging at least
            500 Structures within PG&E’s service area at a time when the portion of PG&E’s system at the location of such wildfire was not successfully de-energized; (xi) the Debtors shall not have received at least $14,00012,000 million of equity commitments by November 7,December 24, 2019 on terms reasonably satisfactory to the Commitment Parties, (xii) since June 30, 2019, a Material Adverse Effect shall have
            occurred; (xiii) the Debtors have failed to perform any of their obligations set forth in this Commitment Letter, which failure to perform (A) would give rise to the failure of the condition set forth in paragraph 1(a) or 1(d) on Annex B hereto
            and (B) is incapable of being cured or, if capable of being cured by June 30, 2020, the Debtors have not cured within 10 calendar days following receipt by the Debtors of written notice of such failure to perform from the Commitment Parties
            holding a majority of the commitments in respect of the Facility, (xiv) to the extent that there is a similar termination event under the BCLs as of the applicable date of determination, if at any time after the first day of the Confirmation Hearing (as defined in the Plan), either (A)
            asserted Administrative Expense Claims (as defined in the Plan) exceed $250 million (excluding all ordinary course Administrative Expense Claims, Professional Fee Claims, and Disallowed Administrative Expense Claims and the portion of an Administrative Expense Claim that is covered by insurance (in each case, as defined in the Plan) and including for the avoidance of doubt, any such expenses or claims with respect to the Facility) and (collectively, the “Excluded Administrative Expense Claims”)) or (B) the Debtors have reserved for and/or paid more than $250 million in the aggregate for Administrative Expense Claims, excluding the Excluded Administrative Expense Claims, (xv) on or prior to June 30, 2020, the Borrower shall not have received from the California Public Utilities Commission (the “CPUC”) all necessary approvals, authorizations and final orders to implement the Plan, and to participate
            in the Go-Forward Wildfire Fund (as defined in the Plan), including (iA) provisions pertaining to authorized return on equity and regulated capital structure, (iiB) a disposition of proposals for certain potential changes to PG&E’s corporate structure and authorizations for the Utility to operate as
            a utility, (iiiC) resolution of claims for monetary fines or penalties
            under the California Public Utilities Code for conduct prior to the Petition Date and (ivD) approval (or exemption from approval) of the financing structure and the securities to be issued under the Plan, (xvi) if at any time the
              Bankruptcy Court determines that the Debtors are insolvent and (xvii) the Plan, any Plan Supplement or any Plan Document is amended, modified or changed, in each case without the consent of the Required Commitment Parties to include a process
              for transferring the license and operating assets of the Utility to the State of California or a third party (a “Transfer”) or PG&E effects a Transfer other than pursuant to the Plan; (the earliest date in clauses (ii) through (xvxvii) being the “Commitment Termination Date”); provided that the termination of any commitment pursuant to this sentence does not prejudice your rights and remedies in
            respect of any breach of this Commitment Letter. You will have the right to terminate this Commitment Letter in the event that the Debtor’s exclusive periods to file and solicit acceptances of a plan of reorganization are terminated or
            modified.

        

        

        
          13

          
            

        

        

        

        Please confirm that the foregoing is in accordance with your understanding by signing and returning to JPMorgan an executed copy of this Commitment Letter, together, if not previously executed and
          delivered, with an executed copy of the Fee Letter, on or before 11:59 p.m., New York City time, on October 11, 2019, whereupon this Commitment Letter and the Fee Letter will become binding agreements between us. This offer will terminate on such
          date if this Commitment Letter and the Fee Letter have not been signed and returned as described in the preceding sentence. We look forward to working with you on this transaction.

        

        

        [Remainder of page intentionally left blank]

        

        

        
          14

          
            

        

        

        

        Schedule I

        

        

        

        

        Titles

        

        

        	
                Commitment Party (or its designated 

                affiliate)

              	
                 

                  

                Title(s)

              
	
                BNP Paribas

              	
                 

                  

                Joint Lead Arranger and Co-

                Documentation Agent

              
	
                Credit Suisse AG, Cayman Islands

                Branch

              	
                 

                  

                Joint Lead Arranger and Co-

                Documentation Agent

              
	
                Morgan Stanley Bank, N.A.

              	
                 

                  

                Joint Lead Arranger and Co-

                Documentation Agent

              
	
                MUFG Union Bank, N.A.

              	
                 

                  

                Joint Lead Arranger and Co-

                Documentation Agent

              
	
                Wells Fargo Bank, National Association

              	
                 

                  

                Joint Lead Arranger and Co-

                Documentation Agent

              
	
                Mizuho Bank, Ltd.

              	
                 

                  

                Joint Lead Arranger and Co-

                Documentation Agent

              

        

        

        
          
            

        

        

        

        Schedule II

        

        

        

        

        Commitments

        

        

        	
                Commitment Party

              	
                Commitment

              
	
                JPMorgan Chase Bank, N.A.

              	
                $1,466,216,216.28

              
	
                Bank of America, N.A.

              	
                $1,099,662,162.16

              
	
                Barclays Bank PLC

              	
                $1,099,662,162.16

              
	
                Citi

              	
                $1,099,662,162.16

              
	
                Goldman Sachs Bank USA

              	
                $1,050,000,000.00

              
	
                Goldman Sachs Lending Partners LLC

              	
                $49,662,162.16

              
	
                BNP Paribas

              	
                $189,189,189.18

              
	
                Credit Suisse AG, Cayman
                    Islands

                Branch

              	
                $189,189,189.18

              
	
                Morgan Stanley Bank, N.A.

              	
                $189,189,189.18

              
	
                MUFG Union Bank, N.A.

              	
                $189,189,189.18

              
	
                Wells Fargo Bank,
                    National

                Association

              	
                $189,189,189.18

              
	
                Mizuho Bank, Ltd.

              	
                $189,189,189.18

              
	
                Total:

              	
                $7,000,000,000.00

              

        

        

        
          
            

          A-2

        

        
        

        

        

        

        	
                Mandatory Prepayments and

                Commitment Reductions:

              	
                On or prior to the Closing Date, the aggregate commitments in respect of the Facility under the Commitment Letter or under the Facility Documentation (as applicable) shall be automatically and permanently
                  reduced, and after the Closing Date, the aggregate principal amount of loans under the Facility shall be prepaid, in each case without penalty or premium and on a dollar-for-dollar basis, by the following amounts (without duplication):

              
	 	 
	 	
                (a) 100% of the Net Cash Proceeds (as defined below) of all asset sales or other dispositions of property by the Borrower, the Utility and their respective subsidiaries and any insurance and condemnation
                  proceeds, other than (i) sales or other dispositions of assets in the ordinary course of business, (ii) sales or other dispositions of obsolete or worn-out property and property no longer used or useful in the business, (iii) intercompany
                  transfers among the Utility, the Borrower and their respective subsidiaries, (iv) sales or other dispositions of assets the Net Cash Proceeds of which do not exceed $10,000,000 in any single transaction or series of related transactions,
                  (v) other sales or other dispositions of assets the Net Cash Proceeds of which do not exceed an aggregate amount of $100,000,000, and (vi) Net Cash Proceeds of any casualty or condemnation event that are reinvested or committed to be
                  reinvested to replace or repair the affected assets within twelve months after the receipt of such proceeds;

              
	 	 
	 	
                (b) 100% of the Net Cash Proceeds received by the Borrower, the Utility or any of their respective subsidiaries from (i) any issuance of debt securities (including the Notes) or other debt for borrowed
                  money (including pursuant to any bank or other credit facility and including the Net Cash Proceeds of any securitization securities or facilities) (other than Excluded Debt (as defined below) and amounts referred to in clause (c) below)
                  (collectively, “Specified Debt”) and (ii) any issuance of equity securities (including shares of its common stock or preferred equity or equity-linked securities) (other than Excluded Equity
                  Offerings (as defined below)); and

              
	 	 
	 	
                (c) 100% of the committed amount under any Qualifying Bank Financing (as defined below), excluding up to $27,350 million under any Qualifying Bank Financing of the Utility;

              
	 	

              
	 	
                provided, however, that until such time as the Backstop Commitments (as defined in those certain Chapter 11 Plan Backstop
                  Commitment Letters (the “BCLs”), as in effect on the date hereofDecember 20, 2019) have been reduced to $0, except as contemplated by the proviso to the Excluded Debt definition below, the commitments in respect of the Facility shall not be reduced by any cash proceeds from any
                  Additional Capital Source (as defined in the BCLs, as in effect on the date hereofDecember 20, 2019)
                  to the extent that such cash proceeds also reduce the Backstop Commitments.

                 

                

              

        

        

        
          
            

          A-4

        

        
        

        

        	 	
                disposition of the 77 Beale Street, San Francisco property or any hydroelectric generation assets; provided that the Facility will provide that not more than $750 million of hydroelectric generation assets
                  may be disposed of, and (E) the amount of reserves established by the Utility, the Borrower or any of their respective subsidiaries in good faith and pursuant to commercially reasonable practices for adjustment in respect of the sale
                  price of such asset or assets in accordance with applicable generally accepted accounting principles; provided that if the amount of such reserves exceeds the amounts charged against such
                  reserve, then such excess, upon determination thereof, shall then constitute Net Cash Proceeds;

              
	 	 
	 	
                (b) with respect to the incurrence, issuance, offering or placement of debt securities or other debt for borrowed money, the excess, if any, of (i) cash actually received by the Utility, the Borrower and
                  their respective subsidiaries in connection with such incurrence, issuance, offering or placement over (ii) the underwriting discounts and commissions and other fees and expenses incurred by the Utility, the Borrower and their respective
                  subsidiaries in connection with such incurrence, issuance, offering or placement; and

              
	 	 
	 	
                (c) with respect to the issuances of equity interests, the excess of (i) the cash actually received by the Utility, the Borrower and their respective subsidiaries in connection with such issuance over (ii)
                  the underwriting discounts and commissions and other fees and expenses incurred by the Utility, the Borrower or any of their respective subsidiaries in connection with such issuance.

              
	 	 
	 	
                
                  “Excluded Debt” shall mean (i) intercompany indebtedness of the Utility, the Borrower or any of their respective subsidiaries, (ii) ordinary-course purchase money indebtedness, facility and
                    equipment financings, other debt incurred in the ordinary course of business for capital expenditures and working capital purposes, financial leases or capital lease obligations, overdraft protection, ordinary course letter of credit
                    facilities, hedging and cash management, and similar obligations, (iii) borrowings under the Revolving Credit Facility up to an aggregate amount not to exceed $500 million, (iv) revolving borrowings under the DIP Facility Credit
                    Agreement (as defined in the Plan) (or refinancings thereof) up to an aggregate amount not to exceed the amount of the revolving commitments in effect thereunder on the date of the Commitment Letter, (v) incremental facilities under the
                    DIP Facility Credit Agreement (or refinancings thereof) or any new debtor-in-possession facilities, in either case that are to be paid in full in cash at emergence from the Chapter 11 Cases, (vi) securitization securities or facilities contemplated by the Plan,, and (vii) issuances of debt by the Utility or its subsidiaries in
                    a principal amount not to exceed $27,350 million and debt or unfunded commitments under a revolving credit facility to be entered into by the Utility in an amount not to exceed $3,500 million, in each case as contemplated by the Plan; provided that, notwithstanding the foregoing, if (A) the aggregate principal amount of Specified Debt issued or incurred by the Borrower plus the aggregate principal amount of Excluded Debt issued
                    or incurred by the Borrower pursuant to clause (vi) plus the principal amount of Surviving Debt of the Borrower exceeds $7,000 million, or (B) the aggregate principal amount of Specified Debt issued or incurred by Utility or its
                    subsidiaries plus the aggregate principal amount of Excluded Debt issued or incurred by the Utility or its subsidiaries pursuant to clause (iv), (v), (vi) or (vii), plus the principal amount of Surviving Debt of the Utility or its
                    subsidiaries exceeds $30,000 million, then in either case the commitments with respect to the Facility shall be reduced, or the loans under the Facility shall be prepaid, by an equivalent amount (for the avoidance of doubt, until such
                    commitments or the aggregate principal amount of such loans, in either case, equal zero).

                

              

        

        

        
          
            

          A-5

        

        
        

        

        	 	
                
                  “Excluded Equity Offerings” shall mean (i) issuances pursuant to employee compensation plans, employee benefit plans, employee based incentive plans or arrangements, employee stock purchase
                    plans, dividend reinvestment plans and retirement plans or issued as compensation to officers and/or non-employee directors or upon conversion or exercise of outstanding options or other equity awards, (ii) issuances of directors’
                    qualifying shares and/or other nominal amounts required to be held by persons other than PG&E, the Borrower and their respective subsidiaries under applicable law, (iii) issuances to or by a subsidiary of the Borrower to the
                    Borrower or any other subsidiary of the Borrower (including in connection with existing joint venture arrangements), (iv) any equity issued pursuant to the Plan in an aggregate amount not to exceed $14,00012,000 million and (v) additional exceptions to be agreed.

                

              
	 	 
	 	
                “Qualifying Bank Financing” shall mean a committed but unfunded bank or other credit facility for the incurrence of debt for borrowed money by the Borrower or the
                  Utility that has become effective for the purposes of financing the Transactions (excluding, for the avoidance of doubt, the Facility), subject to conditions to funding that are, in the written determination of the Borrower, no less
                  favorable to the Borrower than the conditions to the funding of the Facility set forth herein.

              
	 	 
	 	
                
                  In addition, with respect to any Included Securitization Transactions, (x) if the proceeds of such Included
                      Securitization Transaction are received, or commitments with respect thereto are entered into, on or prior to the Closing Date, such proceeds or committed amounts shall be applied as set forth under “Closing Date Securitization
                      Waterfall” below and (y) if the proceeds of such Included Securitization Transaction are received after the Closing Date, then, without duplication of any reduction pursuant to clause (x) above, such proceeds shall be applied to
                      prepay the Facility to the maximum extent permitted by applicable law and regulatory approvals and thereafter shall be applied to prepay the Utility Facility.

                

              

        

        

        
          
            

          A-6

        

        

        

        	

              	
                
                  “Included Securitization Transaction” shall mean any securitization transaction of the Borrower, the Utility or its
                      Subsidiaries other than any non-recourse pass-through securitization transaction contemplated by A.B. 1054, 2019 Assemb. (Cal. 2019) (for the avoidance of doubt, non-recourse pass-through securitization transactions shall not include
                      any securitization all or a portion of which is, directly or indirectly, credited, rebated or otherwise paid to customers).

                

              
	 	 
	 	
                
                  “Fire Victim Trust Securitization” shall mean a tax benefits securitization
                      all or a portion of the proceeds of which will be utilized to finance the Fire Victim Trust contemplated by (and as defined in) the Plan.

                  

              
	 	 
	 	
                In addition, the aggregate commitments in respect of the Facility shall be permanently reduced to zero on the Commitment Termination Date.

              
	 	 
	 	
                The Borrower shall provide the Administrative Agent with prompt written notice of any mandatory prepayment or commitment reduction being required hereunder.

              
	 	 
	 	
                Amounts borrowed under the Facility that are repaid or prepaid may not be reborrowed.

              
	 	 
	
                Closing Date Securitization

                Waterfall:

              	
                
                  On or prior to the Closing Date, the proceeds of all Included Securitization Transactions shall be applied as follows
                      (the “Closing Date Securitization Waterfall”):

                  

              
	 	 
	 	
                
                  First, to the extent constituting proceeds of a Fire Victim Trust
                      Securitization, to finance the Fire Victim Trust as contemplated by the Plan, up to $1,350 million;

                  

              
	 	

              
	 	
                
                  Second, to reduce commitments under the Facility on a dollar-for-dollar basis
                      in accordance with the Mandatory Prepayments and Commitment Reductions section above, up to $2,000 million;

                  

              
	 	

              
	 	
                
                  Third, to be deposited as cash on the balance sheet of the Borrower, the Utility or its Subsidiaries on the Closing Date, up to $650 million;

                  

              
	 	

              
	 	
                
                  Fourth, at the Borrower’s election, in lieu of (and to reduce) the minimum equity requirement (and the intended use of proceeds thereof) as
                        specified in clause 13 of Annex B, up to $4,000 million;

                  

              
	 	

              
	 	
                
                  Thereafter, as the Borrower shall direct (but, for the avoidance of doubt, with no further reduction to the minimum equity requirement, as specified
                        in clause 13 of Annex B).

                  

              

        

        

        
          
            

          A-7

        

        

        

        	
                Voluntary Prepayments and

                Reductions in Commitments:

              	
                Prepayments of borrowings under the Facility will be permitted at any time, in whole or in part and in minimum principal amounts to be agreed upon, without premium or penalty, subject to reimbursement of
                  the Lenders’ redeployment costs in the case of a prepayment of Adjusted LIBOR borrowings other than on the last day of the relevant interest period. The Borrower may voluntarily reduce unutilized portions of the commitments under the
                  Facility at any time without penalty.

              
	 	 
	 	
                Amounts borrowed under the Facility that are repaid or prepaid may not be reborrowed.

              
	 	 
	
                Documentation:

              	
                The making of the loans under the Facility will be governed by definitive loan and related agreements and documentation (collectively, the “Facility
                    Documentation” and the principles set forth in this paragraph, the “Documentation Principles”) to be negotiated in good faith, which will be based on the Borrower’s Second Amended and
                  Restated Credit Agreement, dated as of April 27, 2015, among the Borrower, the financial institutions from time to time party thereto and Bank of America, N.A., as administrative agent (as amended from time to time prior to the date
                  hereof, the “Pre-Petition Credit Agreement”). The Facility Documentation will contain only those representations and warranties, affirmative and negative covenants, mandatory prepayments and
                  commitment reductions, and events of default expressly set forth in the Commitment Letter (including this Annex A). The Facility Documentation shall include modifications to the Pre-Petition Credit Agreement (a) as are necessary to
                  reflect the terms set forth in the Commitment Letter (including this Annex A) and the Fee Letter, (b) to reflect any changes in law or accounting standards since the date of the Pre-Petition Credit Agreement, (c) to reflect the
                  operational or administrative requirements of the Administrative Agent and operational requirements of the Borrower and its subsidiaries, (d) to reflect the nature of the Facility as a bridge facility, (e) to reflect the Borrower’s pro
                  forma capital structure, (f) to reflect certain provisions in the DIP Facility Credit Agreement to be agreed and (g) to reflect the terms of the Plan.

              
	 	 
	
                Representations and Warranties:

              	
                The Facility Documentation will contain only the following representations and warranties, which shall be made on the effectiveness of the Facility Documentation (the “Facility Documentation Effective Date”) and on the Closing Date, and be based on those in the Pre-Petition Credit Agreement (subject to the Documentation Principles): financial condition, no change,
                  existence; compliance with law; power; authorization; enforceable obligations; no legal bar; litigation; no default; taxes; federal regulations; ERISA; investment company act and other regulations;

              

        

        

        
          
            

          ANNEX A-I

        

        
        

        

        	
                Interest Rates:

              	
                The interest rates under the Facility will be, at the option of the Borrower, (a) Adjusted LIBO Rate plus the Applicable Adjusted LIBO Rate Margin (each as defined below) or (b) ABR (as defined below) plus
                  the Applicable Adjusted LIBO Rate Margin minus 1.00% (but in any event not less than 0.00%).

              
	 	 
	 	
                The Borrower may elect interest periods of 1, 2, 3 or 6 months for Adjusted LIBO Rate borrowings. Calculation of interest shall be on the basis of the actual number of days elapsed in a year of 360 days (or
                  365 or 366 days, as the case may be, in the case of ABR loans based on the prime rate) and interest shall be paid in arrears (i) at the end of each interest period and no less frequently than quarterly, in the case of Adjusted LIBO Rate
                  advances, and (ii) quarterly, in the case of ABR advances.

              
	 	 
	 	
                “ABR” is the Alternate Base Rate, which is the greatest of (i) the Prime Rate, (ii) the NYFRB Rate from time to time plus 0.5% and (iii) the Adjusted LIBO
                  Rate for a one month interest period on the applicable date plus 1%.

              
	 	 
	 	
                “Adjusted LIBO Rate” means the LIBO Rate, as adjusted for statutory reserve requirements for eurocurrency liabilities.

              
	 	 
	 	
                “Interpolated Rate” means, at any time, for any interest period, the rate per annum (rounded to the same number of decimal
                  places as the LIBO Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the
                  LIBO Screen Rate for the longest period (for which the LIBO Screen Rate is available for the applicable currency) that is shorter than the Impacted Interest Period; and (b) the
                  LIBO Screen Rate for the shortest period (for which that LIBO Screen Rate is available for the applicable currency)) that exceeds the Impacted Interest Period, in each case, at such time; provided that if any Interpolated Rate as so determined would be less than zero, such rate shall
                  be deemed to be zero for the purposes of the Facility Documentation.

              
	 	 
	 	
                “LIBO Rate” means, with respect to any EurocurrencyEurodollar borrowing for any applicable currency and for any interest period, the LIBO Screen Rate at approximately 11:00 a.m.,
                  London time, two business days prior to the commencement of such interest period; provided that if the LIBO Screen Rate shall not be available at such time for such interest period (an “Impacted Interest Period”) with respect to the applicable currency then the LIBO Rate shall be the Interpolated Rate.

              

        

        

        
          
            

          A-I-2

        

        
        

        

        	 	
                “LIBO Screen Rate” means, for any day and time, with respect to any EurocurrencyEurodollar borrowing for any applicable currency and for any interest period, the London interbank offered
                  rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for the relevant currency for a period equal in
                  length to such interest period as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or
                  substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion); provided that if the LIBO Screen Rate as so determined would be less than zero, such rate shall be deemed to zero for the purposes of calculating such rate.

              
	 	 
	 	
                “NYFRB” means the Federal Reserve Bank of New York.

              
	 	 
	 	
                “NYFRB Rate” means, for any day, the greater of (i) the Federal Funds Effective Rate in effect on such day and (ii) the Overnight Bank Funding Rate in effect on such
                  day (or for any day that is not a business day, for the immediately preceding business day); provided that if none of such rates are published for any day that is a business day, the term “NYFRB
                  Rate” means the rate quoted for such day for a federal funds transaction at 11:00 a.m., New York City time, on such day received by the Administrative Agent from a federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates as so determined would be less than zero, such rate shall be deemed to be zero for purposes of the
                  Facility Documentation.

              
	 	 
	 	
                “Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight eurodollar borrowings by U.S.-managed banking
                  offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time, and published on the next succeeding business day by the NYFRB as an overnight bank funding
                  rate.

              
	 	 
	 	
                “Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S.

              

        

        

        

        

        
          
            

        

        

        

        ANNEX B

        

        

        $7,000 Million Senior Unsecured 364-Day Facility

        Conditions3

        

        

        

        

        The borrowing under the Facility shall be subject to the satisfaction or waiver by the Commitment Parties of the following conditions:

        

        

        1.          (a) The Bankruptcy Court shall have entered (x) the Approval Order and (y) a confirmation order confirming the
            Plan with respect to the Debtors in form and substance reasonably satisfactory to the Required Commitment Parties (the “Confirmation Order”) by no
            later than June 30, 2020, each of which shall (i) not be stayed, (ii) be in full force and effect, (iii) be final and non-appealable, and (iv) not have been reversed, vacated, amended, supplemented, or otherwise modified in a manner adverse to
            the interests of the Commitment Parties without the consent of the Required Commitment Parties (such consent not to be unreasonably withheld, conditioned or delayed; provided modifications to the Plan solely as a result of an increase in roll-over, “take-back” or reinstatement of any existing debt of the Debtors shall be deemed not to be adverse to the Commitment Parties for the purposes of
            this clause (iv)), (b) none of the Plan, the Confirmation Order or the Approval Order shall have been amended or modified or any condition contained therein waived, in either case without the consent of the Required Commitment Parties (such consent not to be unreasonably withheld, conditioned or delayed), (c) the Plan shall have become effective in accordance with
            its terms no later than 60 days after the entry of the Confirmation Order, and all conditions precedent to the effectiveness of the Plan shall have been, or substantially contemporaneously with the closing under the Facility, will be, satisfied
            or waived (to the extent adverse to their interests, with the prior consent of the Required Commitment Parties (such consent not to be unreasonably withheld, conditioned or delayed)), (d) the transactions as described and defined in the Plan to
            occur upon the Effective Date of the Plan shall have been consummated, or substantially concurrently with the closing of the Facility will be consummated, on the Closing Date, (e) the Debtors shall be in compliance in all material respects with
            the Confirmation Order and (f) all documents necessary to implement the Plan and the financings and distributions contemplated thereunder shall have been executed (each, to the extent of which shall either (x) not be adverse to theirthe
          interests, of the Commitment Parties or (y) be in form and substance reasonably acceptable to the Required
          Commitment Parties).

        

        

        2.          (x) The Arrangers shall have received (a) U.S. GAAP audited consolidated balance sheets and related consolidated
            statements of income and comprehensive income, of shareholders’ equity and of cash flows of the Borrower and its subsidiaries for the three most recent fiscal years ended at least 60 days prior to the Closing Date and (b) U.S. GAAP unaudited
            consolidated balance sheets and related consolidated statements of income and comprehensive income, of shareholders’ equity and of cash flows of the Borrower and its subsidiaries for each subsequent fiscal quarter ended at least 40 days before
            the Closing Date (other than the last fiscal quarter of any fiscal year); provided that in each case the financial statements required to be
            delivered by this paragraph 2(x) shall meet the requirements of Regulation S-X under the Securities Act, and all other accounting rules and regulations of the SEC promulgated thereunder applicable to a registration statement on Form S-1, in all
            material respects. The Arrangers hereby acknowledgesacknowledge receipt of
            the financial statements of PG&E in the foregoing clause (a) for the fiscal years ended December 31, 2018, December 31, 2017 and December 31, 2016, and in the foregoing clause (b) for the fiscal quarters ended June 30, 2019 and March 31,
            2019. The Borrower’s filing of any required audited financial statements with respect to the Borrower on Form 10-K or required unaudited financial statements with respect to the Borrower on Form 10-Q, in each case, will satisfy the requirements
            under clauses (a) or (b), as applicable, of this paragraph.

        

        

        

        

        

        

        
          

        3All capitalized terms used but not defined herein have the meanings given to
          them in the Commitment Letter to which this Annex B is attached, including Annex A thereto.

        

        

        
          
            

          B-3

        

        
        

        

        10.          Total PG&E weighted average earning rate base (including electric
            generation, electric transmission, electric distribution, gas distribution, gas transmission and storage) for estimated 2021 as approved by the California Public Utilities Commission (the “CPUC”) shall be no less than 95% of $48 billion.

        

        

        11.          Since June 30, 2019, no result, occurrence, fact, change, event, effect,
            violation, penalty, inaccuracy or circumstance (whether or not constituting a breach of a representation, warranty or covenant set forth in the Plan) that, individually or in the aggregate with any such other results, occurrences, facts,
            changes, events, effects, violations, penalties, inaccuracies, or circumstances, (i) would have or would reasonably be expected to have a material adverse effect on the business, operations, assets, liabilities, capitalization, financial
            performance, financial condition or results of operations, in each case, of the Debtors, taken as a whole, or (ii) would reasonably be expected to prevent or materially delay the ability of the Debtors to consummate the transactions
            contemplated by this Commitment Letter or the Plan or perform their obligations hereunder or thereunder, including their obligations under the Facility or the Utility Facility (each a “Material

              Adverse Effect”) shall have occurred; provided, however, that none of the following results, occurrences, facts, changes, events, effects, violations,
            penalties, inaccuracies or circumstances shall constitute or be taken into account in determining whether a Material Adverse Effect has occurred, is continuing or would reasonably be expected to occur: (A) the filing of the Chapter 11 Cases,
            and the fact that the Debtors are operating in bankruptcy, (B) results, occurrences, facts, changes, events, violations, inaccuracies or circumstances affecting (1) the electric or gas utility businesses in the United States generally or (2)
            the economy, credit, financial, capital or commodity markets, in the United States or elsewhere in the world, including changes in interest rates, monetary policy or inflation, (C) changes or prospective changes in law (other than any law or
            regulation of California or the United States that is applicable to any electrical utility) or in GAAP or accounting standards, or any changes or prospective changes in the interpretation or enforcement of any of the foregoing, (D) any decline
            in the market price, or change in trading volume, of any securities of the Debtors, (E) any failure to meet any internal or public projections, forecasts, guidance, estimates, milestones, credit ratings, budgets or internal or published
            financial or operating predictions of revenue, earnings, cash flow or cash position, (F) any wildfire occurring after the Petition Date and prior to January 1, 2020, and (G) one or more wildfires, occurring on or after January 1, 2020, that
            destroys or damages fewer than 500 Structures in the aggregate (it being understood that (I) the exceptions in clauses (D) and (E) shall not prevent or otherwise affect a determination that the underlying cause of any such change, decline or
            failure referred to therein is a Material Adverse Effect, and (II) a Material Adverse Effect shall include the occurrence of one or more wildfires on or after January 1, 2020 destroying or damaging at least 500 Structures within PG&E’s
            service area at a time when the portion of PG&E’s system at the location of such wildfire was not successfully de-energized.

        

        

        12.          The Debtors’ aggregate liability with respect to WildfireFire Claims shall be determined (whether (i) by the Bankruptcy Court (or the
            District Court to which the reference has been partially withdrawn for estimation purposes), (ii) pursuant to an agreement between the Debtors and the holders of WildfireFire Claims, or (iii) through a combination thereof) not to exceed the Wildfire Claims Cap; provided,
              however, that for purposes of this paragraph 13, (A) any Wildfire Claim that the CPUC has approved or agreed to approve for recovery or pass through by the Utility shall not count in
              determining the Wildfire Claims Cap and (B) the Wildfire Claims Cap shall be increased by an amount equal to the amount of Wildfire Claims consisting of professional fees that the Bankruptcy Court (or the District Court to which the reference
              has been partially withdrawn for estimation purposes) determines to be reasonable.Fire Claims Cap.

        

        

        13.          PG&E shall have received at least $14,00012,000 million of proceeds from the issuance of equity, on terms acceptable to each Commitment
            Party in its sole discretion, provided that (i)
            up to $2,000 million of such proceeds shall be permitted to come from the proceeds of preferred equity, or equity-linked securities or securitizations issued by PG&E or the Utility, so long as such issuance could not reasonably be
            expected to negatively impact cash distributions to the Borrower or distributions that will be available to service debt at the Borrower. and (ii) such amount may be reduced by up to $4,000 million from the proceeds of any Included Securitization Transaction on terms reasonably satisfactory to the Commitment Parties subject to compliance with
              the Closing Date Securitization Waterfall set forth in Annex A. The economic benefit of the net operating loss carryforwards and other tax attributes of the Borrower, the Utility or its subsidiaries shall not have been transferred (pursuant
              to a tax monetization transaction or otherwise) except on terms that could not reasonably be expected to negatively impact the cash flows of the Borrower, the Utility or its subsidiaries as determined by the Arrangers in their sole
              discretion.

        

        

        
          
            

          B-4

        

        
        

        

        14.          The Utility has both (i) elected, and received Bankruptcy Court approval, to participate in
            the Go-Forward Wildfire Fund (as defined in the Plan) and (ii) satisfied the other conditions to participation in the Go-Forward Wildfire Fund set forth in the Wildfire Legislation (as defined in the Plan).

        

        

        15.          PG&E shall own directly 100% of the common stock of the Utility.

        

        

        16.          No order of a governmental authority of competent jurisdiction restraining, enjoining or
            otherwise prohibiting the consummation or funding of any transactions contemplated by the Plan shall have been received by the Debtors, and no law, statute, rule, regulation or ordinance shall have been adopted that makes the consummation or
            funding of any transactions contemplated by the Plan illegal or otherwise prohibited.  The Utility shall have delivered to the Arrangers a financial model satisfactory to
              the Arrangers reflecting sources and uses and capital structure, together with a certification by the Utility that such financial model demonstrates compliance with all regulatory requirements (including all CPUC approvals).

        

        

        17.          One or more investment banks reasonably satisfactory to the Commitment Parties shall have been
            engaged to publicly sell or privately place the Notes for the purpose of reducing, replacing or refinancing the Facility.

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