Document:

EX-10.2

 Exhibit 10.2 

ONCOR ELECTRIC DELIVERY COMPANY LLC 

$174,000,000 3.86% Senior Notes, Series A, due December 3, 2025 

and 
 $38,000,000 3.86% Senior
Notes, Series B, due January 14, 2026 
  

 

NOTE PURCHASE AGREEMENT 

 
  

Dated as of May 6, 2019 
  

 
  

 TABLE OF CONTENTS 

 

							
	 Section 1. Authorization of Notes
	  	 	1	 
		
	 Section 2. Exchange of Notes
	  	 	1	 
		
	 Section 3. Closing
	  	 	2	 
		
	 Section 4. Conditions to Purchasers’ Obligations
	  	 	2	 
			
	 Section 4.1
	    	InfraREIT Merger	  	 	2	 
	 Section 4.2
	    	No Legal Restraint	  	 	2	 
	 Section 4.3
	    	Representations and Warranties	  	 	2	 
	 Section 4.4
	    	Performance; No Default	  	 	2	 
	 Section 4.5
	    	Compliance Certificates	  	 	3	 
	 Section 4.6
	    	Payment of Counsel Fees	  	 	3	 
	 Section 4.7
	    	Private Placement Number	  	 	3	 
	 Section 4.8
	    	Changes in Structure	  	 	3	 
	 Section 4.9
	    	Proceedings and Documents	  	 	3	 
	 Section 4.10
	    	Deed of Trust	  	 	4	 
	 Section 4.11
	    	Opinions of Counsel	  	 	4	 
	 Section 4.12
	    	Financial Statements	  	 	4	 
	 Section 4.13
	    	Consents and Approvals	  	 	4	 
	 Section 4.14
	    	Proceedings and Documents	  	 	4	 
		
	 Section 5. Conditions to Company’s Obligations
	  	 	4	 
			
	 Section 5.1
	    	InfraREIT Merger	  	 	4	 
	 Section 5.2
	    	Exchange of Prior Notes	  	 	4	 
	 Section 5.3
	    	No Legal Restraint	  	 	4	 
	 Section 5.4
	    	Representations and Warranties	  	 	5	 
		
	 Section 6. Representations and Warranties of the Company
	  	 	5	 
		
	 Section 7. Representations of the Purchasers
	  	 	12	 
			
	 Section 7.1
	    	Purchase for Investment	  	 	12	 
	 Section 7.2
	    	Source of Funds	  	 	12	 
	 Section 7.3
	    	Separateness of the Company	  	 	13	 
		
	 Section 8. Covenants of the Company
	  	 	14	 
			
	 Section 8.1
	    	Payment of Notes	  	 	14	 
	 Section 8.2
	    	Maintenance of Corporate Existence	  	 	14	 
	 Section 8.3
	    	[Reserved]	  	 	14	 
	 Section 8.4
	    	Limitation on Secured Debt	  	 	14	 
	 Section 8.5
	    	Consolidation, Merger, Conveyance, or Other Transfer	  	 	14	 
	 Section 8.6
	    	Financial Ratio	  	 	16	 
	 Section 8.7
	    	Compliance with Laws; Business and Properties	  	 	16	 
	 Section 8.8
	    	Financial Statements, Reports, Etc.	  	 	16	 
	 Section 8.9
	    	Insurance	  	 	18	 
	 Section 8.10
	    	Taxes, Etc.	  	 	18	 
	 Section 8.11
	    	Maintaining Records	  	 	18	 
	 Section 8.12
	    	 Use of Proceeds
	  	 	18	 

  
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	 Section 8.13
	    	Transaction with Affiliates	  	 	18	 
	 Section 8.14
	    	Further Assurances	  	 	19	 
	 Section 8.15
	    	Economic Sanctions, Etc.	  	 	19	 
	 Section 8.16
	    	Reserved	  	 	19	 
	 Section 8.17
	    	Priority Debt	  	 	19	 
	 Section 8.18
	    	Visitation	  	 	19	 
	 Section 8.19
	    	Line of Business	  	 	20	 
	 Section 8.20
	    	Sales of Assets, Etc.	  	 	20	 
	 Section 8.21
	    	Restricted Payments	  	 	21	 
	 Section 8.22
	    	Amendment to Deed of Trust	  	 	21	 
	 Section 8.23
	    	Termination of Liens	  	 	21	 
		
	 Section 9. Payment and Prepayment of the Notes
	  	 	21	 
			
	 Section 9.1
	    	Maturity	  	 	21	 
	 Section 9.2
	    	Optional Prepayments with Make-Whole Amount	  	 	21	 
	 Section 9.3
	    	Allocation of Partial Prepayments	  	 	22	 
	 Section 9.4
	    	Maturity; Surrender, Etc.	  	 	22	 
	 Section 9.5
	    	Purchasers of Notes	  	 	22	 
	 Section 9.6
	    	Payments Due on Non-Business Days	  	 	22	 
	 Section 9.7
	    	Make-Whole Amount	  	 	23	 
	 Section 9.8
	    	Change in Control / Sanctions Event	  	 	24	 
	 Section 9.9
	    	Prepayment in Connection with Sales of Assets	  	 	25	 
		
	 Section 10. Events of Default
	  	 	25	 
		
	 Section 11. Remedies On Default, Etc.
	  	 	28	 
			
	 Section 11.1
	    	Acceleration	  	 	28	 
	 Section 11.2
	    	Other Remedies	  	 	29	 
	 Section 11.3
	    	Rescission	  	 	29	 
	 Section 11.4
	    	No Waivers or Election of Remedies, Expenses, Etc.	  	 	29	 
		
	 Section 12. Registration; Exchange; Substitution of Notes
	  	 	29	 
			
	 Section 12.1
	    	Registration of Notes	  	 	29	 
	 Section 12.2
	    	Transfer and Exchange of Notes	  	 	30	 
	 Section 12.3
	    	Replacement of Notes	  	 	30	 
		
	 Section 13. Payments On Notes
	  	 	31	 
			
	 Section 13.1
	    	Place of Payment	  	 	31	 
	 Section 13.2
	    	Payment by Wire Transfer	  	 	31	 
		
	 Section 14. Expenses, Etc.
	  	 	31	 
			
	 Section 14.1
	    	Transaction Expenses	  	 	31	 
	 Section 14.2
	    	Survival	  	 	32	 
		
	 Section 15. Survival of Representations and Warranties; Entire Agreement
	  	 	32	 
		
	 Section 16. Amendment and Waiver
	  	 	32	 
			
	 Section 16.1
	    	Requirements	  	 	32	 
	 Section 16.2
	    	 Solicitation of Holders of Notes
	  	 	33	 

  
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	 Section 16.3
	    	Binding Effect, Etc.	  	 	33	 
	 Section 16.4
	    	Notes Held by Company, Etc.	  	 	34	 
		
	 Section 17. Notices
	  	 	34	 
		
	 Section 18. Reproduction of Documents
	  	 	34	 
		
	 Section 19. Confidential Information
	  	 	35	 
		
	 Section 20. Substitution of Purchaser
	  	 	36	 
			
	 Section 21.
	    	Miscellaneous	  	 	36	 
	 Section 21.1
	    	Successors and Assigns	  	 	36	 
	 Section 21.2
	    	Accounting Terms	  	 	36	 
	 Section 21.3
	    	Severability	  	 	37	 
	 Section 21.4
	    	Construction, Etc.	  	 	37	 
	 Section 21.5
	    	Counterparts	  	 	37	 
	 Section 21.6
	    	Governing Law	  	 	37	 
	 Section 21.7
	    	Specific Performance	  	 	37	 
	 Section 21.8
	    	Jurisdiction and Process; Waiver of Jury Trial	  	 	37	 
	 Section 21.9
	    	Indemnification	  	 	38	 

  

					
	SCHEDULE A	  	—	  	DEFINED TERMS
			
	SCHEDULE B	  	—	  	INFORMATION RELATING TO PURCHASERS
			
	Error! Reference source not found.	  	—	  	FORM OF 3.86% SENIOR NOTE, SERIES A, DUE DECEMBER 3, 2025
			
	Error! Reference source not found.	  	—	  	FORM OF 3.86% SENIOR NOTE, SERIES B, DUE JANUARY 14, 2026
			
	Schedule 4.11	  		  	FORM OF OPINION OF COUNSEL

  
 iii 

 Oncor Electric Delivery Company LLC 

1616 Woodall Rodgers Freeway 

Dallas, Texas 75202 

3.86% Senior Notes, Series A, Due December 3, 2025 

And 
 3.86% Senior Notes,
Series B, Due January 14, 2026 
 Dated as of May 6, 2019 

To Each Of The Purchasers Listed In 

Schedule B Hereto: 
 Ladies and
Gentlemen: 
 Oncor Electric Delivery Company LLC, a Delaware limited liability company (together with any successor thereto that becomes a
party hereto pursuant to Section 8.5(a), the “Company”), agrees with each of the Purchasers as follows: 

Section 1. Authorization of Notes. 

The Company will authorize the issue of (i) $174,000,000 aggregate principal amount of its 3.86% Senior Notes, Series A, due December 3,
2025 (the “Series A Notes”) and (ii) $38,000,000 aggregate principal amount of its 3.86% Senior Notes, Series B, due January 14, 2026 (the “Series B Notes” and together with the Series A Notes, as each may be
amended, restated or otherwise modified from time to time pursuant to Section 16 and including any such notes issued in substitution therefor pursuant to
Section 12, the “Notes”). The Notes shall be substantially in the forms set out in Error! Reference source not found. and Error! Reference source not found., respectively
and secured by a perfected first priority security interest (subject to Permitted Liens) in the Mortgaged Property ratably with the Secured Parties. Certain capitalized and other terms used in this Agreement are defined in Schedule A.
References to a “Schedule” are references to a Schedule attached to this Agreement unless otherwise specified. References to a “Section” are references to a Section of this Agreement unless otherwise specified. 

Section 2. Exchange of Notes. 

Subject to the conditions set forth in Section 4 and
Section 5 of this Agreement, each Purchaser will deliver to the Company the principal amount of the outstanding 3.86% Senior Notes, Series A, due December 3, 2025 and 3.86% Senior Notes, Series B,
due January 14, 2026 specified on Schedule B, each issued by SDTS (collectively, the “Exchanged Notes”), in exchange for the principal amount of Notes specified on Schedule B at the Closing provided
for in Section 3. The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder. 

  
 1 

 Section 3. Closing. 

Subject to the conditions set forth in Section 4 and
Section 5 of this Agreement, the exchange of the Exchanged Notes by each Purchaser for Notes (the “Closing”) shall occur on the Merger Closing Date substantially contemporaneously with,
but immediately after, the InfraREIT Merger. At the Closing, (a) each Purchaser shall deliver or cause to be delivered to the Company, all right, title and interest in and to its Exchanged Notes, including the original Exchanged Notes with
appropriate endorsements, as specified on Schedule B hereto, free and clear of any Liens, together with any documents of conveyance or transfer that the Company may deem reasonably necessary or desirable to transfer to and confirm in
the Company all right, title and interest in and to the Exchanged Notes, free and clear of any Liens, (b) the Company shall deliver to each Purchaser the Notes to be issued to such Purchaser set forth on Schedule B in the form of
a single Note for each series of Notes (or such greater number of Notes in denominations of at least $100,000 as such Purchaser may request) dated the date of the Closing and registered in such Purchaser’s name (or in the name of its nominee),
and (c) the Company shall pay to each Purchaser an amount equal to the accrued and unpaid interest on such Purchaser’s Exchanged Notes to, but excluding, the date of the Closing. 

Section 4. Conditions to Purchasers’ Obligations. 

Each Purchaser’s obligation to exchange its Exchanged Notes for the Notes to be issued to such Purchaser at the Closing is subject to the
fulfillment, prior to or at the Closing, of the following conditions: 
 Section 4.1 InfraREIT Merger. The InfraREIT Merger shall
have been consummated in accordance with the Merger Agreement without giving effect to any waiver, modification or consent thereunder that is materially adverse to the interests of the Purchasers. 

Section 4.2 No Legal Restraint. No court or other Governmental Authority of competent jurisdiction shall have enacted,
issued or promulgated, enforced or entered any law, regulation, order, or decree that is in effect and restrains, enjoins or otherwise prohibits or makes illegal the consummation of the transactions contemplated hereunder. 

Section 4.3 Representations and Warranties. The representations and warranties of the Company in this Agreement and the other Note
Documents shall be correct in all material respects when made and at the Closing; provided that if a representation or warranty specifies a specific date, other than the date of Closing, such representation or warranty shall be correct in all
material respects as of such other date. 
 Section 4.4 Performance; No Default. The Company shall have performed and complied
in all material respects with all agreements and conditions contained in this Agreement and the other Note Documents required to be performed or complied with by it prior to or at the Closing. Before and after giving effect to the issue of the
Notes, no Default or Event of Default shall have occurred and be continuing. 

  
 2 

 Section 4.5 Compliance Certificates. 

(a) Officer’s Certificate. The Company shall have delivered to such Purchaser an Officer’s Certificate, dated
the date of the Closing, certifying that the conditions specified in Section 4.1, 4.3, 4.4 and 4.8 have been fulfilled. 

(b) Secretary’s Certificate. The Company shall have delivered to such Purchaser a certificate of its Secretary or
Assistant Secretary, dated the date of the Closing, certifying as to (i) the resolutions attached thereto and other proceedings relating to the authorization, execution and delivery of the Notes, this Agreement and the other Note Documents and
(ii) the Company’s organizational documents as then in effect. 
 Section 4.6 Payment of Counsel Fees. Without
limiting Section 14.1, the Company shall have paid on or before the Closing the fees, charges and disbursements of one counsel to the Purchasers as a whole to the extent reflected in a statement of such
counsel rendered to the Company at least one Business Day prior to the Closing. 
 Section 4.7 Private Placement Number. A
Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for each series of the Notes prior to the date of the Closing with respect to such series of Notes. 

Section 4.8 Changes in Structure. The Company shall not have changed its jurisdiction of formation or, except as provided in
Section 8.5 and except for the transactions contemplated by the Merger Agreement, been a party to any merger or consolidation, at any time following the date of the most recent financial statements
delivered to the Purchasers. 
 Section 4.9 Proceedings and Documents. Such Purchaser shall have received executed copies of the
following, each to be dated the date of the Closing unless otherwise indicated: 
 (a) the Notes to be issued to such Purchaser; 

(b) the certificate of formation of the Company certified as of a recent date by the Secretary of State of the State of Delaware and by the
Company’s Secretary or Assistant Secretary or other authorized officer; 
 (c) the organizational documents of the Company, certified by
the Company’s Secretary or Assistant Secretary or other authorized officer; 
 (d) an incumbency certificate signed by the secretary and
one other officer of the Company, certifying as to the names, titles and true signatures of the officers of the Company authorized to sign this Agreement, the Notes and the other Note Documents to be executed at the Closing; 

  
 3 

 (e) a certificate of the Secretary or Assistant Secretary of the Company attaching
resolutions of its board of directors evidencing approval of the transactions contemplated by this Agreement and the other Note Documents and the exchange of the Notes, and in each case, the execution, delivery and performance thereof, and
authorizing certain officers to execute and deliver the same, and certifying that such resolutions were duly and validly adopted and have not since been amended, revoked or rescinded; and 

(f) evidence of good standing as to the Company from all relevant jurisdictions. 

Section 4.10 Deed of Trust. The Company will deliver or cause to be delivered to such Purchaser the documentation set forth in
Section 22.3 of the Deed of Trust that is necessary for the Obligations owing or to be owed to such Purchaser to become “Additional Obligations” under the Deed of Trust. 

Section 4.11 Opinions of Counsel. Such Purchaser shall have received an opinion in form and substance satisfactory to such
Purchaser, dated the date of such Closing from Vinson & Elkins, LLP, counsel for the Company, substantially in the form set out in Schedule 4.11. 

Section 4.12 Financial Statements. Such Purchaser shall have received audited financial statements of the Company for the fiscal
year ended December 31, 2018. 
 Section 4.13 Consents and Approvals. All Required Permits and all governmental and third
party permits and regulatory and other approvals required to be in effect in connection with the exchange of the Notes hereunder have been obtained and are in effect, all applicable waiting periods have expired without any materially adverse action
being taken by any applicable authority. 
 Section 4.14 Proceedings and Documents. All corporate and other proceedings in
connection with the Closing and all documents and instruments incident thereto shall be reasonably satisfactory to such Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart originals
or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request in connection with the Closing. 

Section 5. Conditions to Company’s Obligations. 

The Company’s obligation to issue the Notes in exchange for the Exchanged Notes at the Closing is subject to the fulfillment, prior to or
at the Closing, of the following conditions: 
 Section 5.1 InfraREIT Merger. The InfraREIT Merger shall have been consummated
in accordance with the Merger Agreement. 
 Section 5.2 Exchange of Prior Notes. Contemporaneously with the Closing,
(i) the exchange of Prior Notes in an aggregate principal amount not less than 100% of the aggregate principal amount of each series of Prior Notes shall have occurred in accordance with the applicable NPA and (ii) originals of such Prior
Notes shall have been delivered by the applicable Purchasers with appropriate endorsements to the Company. 
 Section 5.3 No Legal
Restraint. No court or other Governmental Authority of competent jurisdiction shall have enacted, issued or promulgated, enforced or entered any law, regulation, order, or decree that is in effect and restrains, enjoins or otherwise
prohibits or makes illegal the consummation of the transactions contemplated hereunder. 

  
 4 

 Section 5.4 Representations and Warranties. The representations and warranties
of each Purchaser in this Agreement and the other Note Documents to which such Purchaser is a party shall be correct in all material respects when made and at the Closing; provided that if a representation or warranty specifies a specific
date, other than the date of Closing, such representation or warranty shall be correct in all material respects as of such other date. 
 Section 6.
Representations and Warranties of the Company. 
 After giving effect to the InfraREIT Merger, the Company represents and warrants to
the Purchasers that: 
 (a) As of the date hereof, the Exchange Act Documents do not contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements contained therein, in the light of the circumstances under which they were made, not misleading (other than disclosures regarding the closing of the InfraREIT Merger and related
transactions and the effectiveness of the Note Purchase Agreements). 
 (b) The Company has been organized and is validly existing as a
limited liability company and is in good standing under the laws of the jurisdiction of its organization, has the power and authority to own, lease and operate its properties and to conduct its business as presently conducted and as set forth in or
contemplated by the Exchange Act Documents, and is qualified to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of
business, except where the failure to so qualify or be in good standing would not have a Material Adverse Effect. 
 (c) As of the date
hereof, the Company does not have any significant subsidiaries within the meaning of Rule 1-02(w) of Regulation S-X of the Commission, other than InfraREIT Partners,
TDC, SDTS and Merger Sub. 
 (d) The Company (i) is not in violation of its Certificate of Formation or LLC Agreement, (ii) is not
in default and no event has occurred which, with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or condition contained in any agreement, indenture or other instrument to
which it is a party or by which it is bound or to which any of its properties are subject, except for any such defaults that would not, individually or in the aggregate, have a Material Adverse Effect and (iii) is not in violation of any law,
ordinance, governmental rule, regulation or court decree to which it or its property may be subject, except for any such violations or defaults that would not, individually or in the aggregate, have a Material Adverse Effect. 

(e) Except as set forth as such in or contemplated by the Exchange Act Documents, the Company and each of its Subsidiaries has complied in all
material respects with all Federal, state, local and other statutes, ordinances, orders, judgments, rulings and regulations relating to environmental pollution or to environmental regulation or control, except to the extent that failure to so comply
could not reasonably be expected to result in a Material Adverse Effect. 

  
 5 

 
Except as set forth as such in or contemplated by the Exchange Act Documents, the facilities of the Company or any of its Subsidiaries, as the case may be, are not used to manage any hazardous
wastes, hazardous substances, hazardous materials, toxic substances, toxic pollutants or substances similarly denominated, as those terms or similar terms are used in the Resource Conservation and Recovery Act, the Comprehensive Environmental
Response Compensation and Liability Act, the Hazardous Materials Transportation Act, the Toxic Substance Control Act, the Clean Air Act, the Clean Water Act or any other Applicable Law relating to environmental pollution, or any nuclear fuel or
other radioactive materials, in violation in any material respect of any law or any regulations promulgated pursuant thereto, except to the extent that such violations could not reasonably be expected to result in a Material Adverse Effect. Except
as set forth as such in or contemplated by the Exchange Act Documents, the Company is not aware of any events, conditions or circumstances involving environmental pollution or contamination that could reasonably be expected to result in a Material
Adverse Effect. 
 (f) The consummation of the transactions contemplated herein and the fulfillment of the terms hereof will not result in a
breach of any of the terms or provisions of, or constitute (i) a default under its Certificate of Formation or LLC Agreement, (ii) a default under any indenture, mortgage, deed of trust or other agreement or instrument to which the Company
is now a party or by which it is bound or to which any of its property is subject, except for defaults that would not, individually or in the aggregate, have a Material Adverse Effect or (iii) a violation of any statute, order, rule or
regulation applicable to the Company, except for breaches, defaults, violations that would not, individually or in the aggregate, have a Material Adverse Effect. 

(g) The Company has not, directly or indirectly, solicited any offer to buy or offered to sell, and will not, directly or indirectly, solicit
any offer to buy or offer to sell, in the United States or to any United States citizen or resident, any security which is or would be integrated with the sale of the Notes in a manner that would require the offer and sale of the Notes to the
Purchasers in accordance herewith to be registered under the Securities Act. 
 (h) None of the Company, its Affiliates, or any Person acting
on its or any of their behalf has engaged, in connection with the exchange of the Notes, in any form of general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act. 

(i) No approval, authorization, consent or order of any public board or body (other than in connection or in compliance with the provisions of
applicable blue-sky laws or securities laws of any jurisdiction (other than the federal securities laws of the United States of America), as to which the Company makes no representation or warranty) is legally
required for the exchange of the Notes by the Company. No report, financial statement or other written information (other than any projection and other forward looking information and other information of a general economic or industry specific
nature) filed by or on behalf of the Company, when taken together with all reports of the Company filed with the Commission under the Exchange Act, contained any material misstatement of fact or omitted any material fact necessary to make the
statements therein not materially misleading, in the light of the circumstances under which such statements were made; provided that, with respect to projections and forward looking statements, the Company represents only that such
information was prepared in good faith based upon assumptions and estimates believed to be reasonable at the time made and notes that whether or not such projections or forward looking statements are in fact achieved will depend upon future events
some of which are not within the control of the Company and actual results may vary from the projections and such variations may be material and, accordingly, the Company gives no representation and warranty that such projections and forward looking
statements will be achieved. 

  
 6 

 (j) The Financial Statements, together with the related schedules and notes, present fairly,
in all material respects, the financial position of the Company and its consolidated Subsidiaries, other than InfraREIT Partners, TDC and SDTS, at the dates indicated and the statements of income and cash flows of the Company and its consolidated
Subsidiaries, other than InfraREIT Partners, TDC and SDTS, for the periods specified; except as set forth therein, the Financial Statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods involved.

 (k) This Agreement has been duly authorized, executed and delivered by the Company which has the necessary power and authority to execute,
deliver and perform its obligations under this Agreement. 
 (l) This Agreement is a valid and binding instrument, enforceable against the
Company in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other similar laws relating to or affecting creditors’ rights generally and by
general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 (m) The Deed
of Trust has been duly authorized, executed and delivered by the Company and constitutes the valid and legally binding obligation of the Company, enforceable in accordance with its terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, receivership, moratorium or other similar laws relating to or affecting creditors’ rights generally and by general principles of equity and except to the extent that the law of the jurisdictions in which
the mortgaged property is located may limit or deny certain remedial provisions of the Deed of Trust. 
 (n) The Notes have been duly
authorized by the Company for issuance to the Purchasers pursuant to this agreement and, when executed by the Company and delivered to the Purchasers against payment therefor in accordance with the terms of this Agreement, will constitute valid and
binding obligations of the Company entitled to the benefits of this Agreement and enforceable against the Company in accordance with their terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization,
receivership, moratorium or other similar laws relating to or affecting creditors’ rights generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). The Company
has all requisite limited liability company power and authority to issue and deliver the Notes in accordance with and upon the terms and conditions set forth in this Agreement. 

(o) The Company has good and indefeasible title to all real property owned by the Company which is necessary to the operation of the
Company’s businesses as currently conducted and described in the Deed of Trust as subject to the Lien thereof, and good title to all other property owned by the Company which is necessary to the operation of the Company’s businesses as
currently conducted and so described as subject to such Lien, in each case (i) except where the failure to have such good title or valid interests could not reasonably be expected to have a Material Adverse Effect, and (ii) subject only to
Permitted Liens. 

  
 7 

 (p) The Deed of Trust constitutes, and at the Closing the Deed of Trust will constitute, a
valid first Lien upon and security interest in the interest held by the Company in its property covered by the Deed of Trust securing all of the Company’s obligations under the Notes and this Agreement, including, without limitation, principal,
interest, Make-Whole Amount, if any, fees, expenses and all other obligations of the Company hereunder and under the Notes, subject to Permitted Liens and to the effects of bankruptcy, insolvency or similar laws affecting creditors’ rights
generally and general equitable principles. The Deed of Trust by its terms effectively subjects, and at and after the Closing the Deed of Trust by its terms will effectively subject, to the Lien thereof all Mortgaged Property acquired by the Company
after the date of the execution and delivery of the Deed of Trust, subject to no Lien prior to the Lien of the Deed of Trust except (i) Permitted Liens, (ii) any Lien thereon existing at the time of such acquisition, (iii) any Lien
for unpaid portions of the purchase price thereof placed thereon at the time of such acquisition, (iv) with respect to real property, any Lien placed thereon following the acquisition thereof by the Company and prior to the recording and filing
in the county or counties where such real property is located of a deed of trust or other instrument specifically describing and granting a Lien upon such real property, (v) as otherwise provided in
Section 8.5, (vi) except for possible claims in bankruptcy and possible claims for taxes and (vii) such other matters as would not materially affect the Lien of the Deed of Trust. The Deed of Trust
has been recorded in the Office of the Secretary of State of the State of Texas and notices pursuant to and in accordance with Section 261.011 of the Texas Business and Commerce Code have been duly filed in each of the counties in the State of
Texas in which any real property owned by the Company as of the date of the Closing and described in the Deed of Trust is located, and all requisite steps will have been taken to perfect the security interest of the Deed of Trust in personal
property of the Company; and at the Closing all taxes and recording and filing fees required to be paid with respect to the execution, recording or filing of the Deed of Trust, the filing of financing statements and similar documents will have been
paid. 
 (q) Other than as set forth or contemplated in the Exchange Act Documents, as of the date hereof, there is no litigation or
governmental proceeding to which the Company or any of its Subsidiaries is a party or to which any property of the Company or any of its Subsidiaries is subject or which is pending or, to the knowledge of the Company, threatened against the Company
or any of its Subsidiaries that could reasonably be expected to, individually or in the aggregate, result in a Material Adverse Effect. 

(r) The Company is not, and after giving effect to the exchange of the Notes, will not be, required to register as an “investment
company” within the meaning of the Investment Company Act of 1940, as amended. 
 (s) Subject to the accuracy of the representations
and warranties and the due performance of the agreements of the Purchasers in Section 7 (including, without limitation, the transfer restrictions referred to therein), the exchange and delivery of the
Notes to the Purchasers in the manner contemplated by this Agreement do not require registration under the Securities Act. 

  
 8 

 (t) The Company maintains “disclosure controls and procedures” (as defined
in Rule 15d-15(e) of the Exchange Act) reasonably designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported in accordance with the Exchange Act and the rules and regulations thereunder. The Company has carried out evaluations, under the supervision and with the participation of the Company’s principal executive and
principal financial officers, of the effectiveness of the Company’s disclosure controls and procedures in accordance with Rule 15d-15 of the Exchange Act. 

(u) The Company maintains a system of “internal control over financial reporting” (as such term is defined in Rule 15d-15(f) under the Exchange Act) that complies with the requirements of the Exchange Act and has been designed by the Company’s principal executive officer and principal financial officer, or under their
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. The Company’s internal control over financial reporting is
effective and the Company is not aware of any material weaknesses in its internal control over financial reporting. 
 (v) Neither the
Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United
Nations or the European Union. 
 (w) Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or
been charged or convicted under, any applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Company’s knowledge, is under investigation by any Governmental Authority for possible
violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws. 
 (x) No part of the proceeds from the
exchange of the Notes hereunder: 
 (1) constitutes or will constitute funds obtained on behalf of any Blocked Person or will
otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be
in violation of any U.S. Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws; 

(2) will be used, directly or indirectly, in violation of, any applicable Anti-Money Laundering Laws; or 

(3) will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any
Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, any applicable Anti-Corruption Laws. 

  
 9 

 (y) The Company has established procedures and controls which it reasonably believes are
adequate to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti-Corruption Laws. 

(z) No part of the proceeds from the exchange of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or
carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any Securities under such circumstances as to involve the
Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 25% of the value of the consolidated assets of
the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 25% of the value of such assets. As used in this Section 6(z), the terms
“margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U. 

(aa) Except where the failure of which could not be reasonably expected to have a Material Adverse Effect, (a) each of the Company and
each of its Subsidiaries has filed all federal, state and local and non-U.S. income tax returns required to be filed by it and has paid all material taxes payable by it that have become due, other than those
(i) not yet delinquent or (ii) contested in good faith as to which adequate reserves have been provided to the extent required by law and in accordance with GAAP, (b) each of the Company and each of its Subsidiaries has provided
adequate reserves in accordance with GAAP for the payment of all federal, state, provincial and foreign taxes not yet due and payable and (c) each of the Company and each of its Subsidiaries has satisfied all of its tax withholding obligations.

 (bb) (i) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except
for such instances of noncompliance as have not resulted in and could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability
pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that could,
individually or in the aggregate, reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA
Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any such penalty or excise tax provisions under the Code or federal law or section 4068 of ERISA or by the granting of a security
interest in connection with the amendment of a Plan, other than such liabilities or Liens as would not reasonably be expected to individually or in the aggregate have a Material Adverse Effect. 

(ii) The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans),
determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current
value of the assets of such Plan allocable to such benefit liabilities by more than an amount that could reasonably be expected to have a Material Adverse Effect. The term “benefit liabilities” has the meaning specified in
section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA. 

  
 10 

 (iii) The Company and its ERISA Affiliates have not incurred withdrawal
liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material. 

(iv) No event has occurred with respect to the expected postretirement benefit obligation (determined as of the last day of the
Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 715-60, without regard to liabilities attributable to continuation
coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries that could reasonably be expected to result in a Material Adverse Effect. 

(v) The execution and delivery of this Agreement and the exchange of the Notes hereunder will not involve any transaction that
is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by the Company to each
Purchaser in the first sentence of this Section 6(bb)(v) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in
Section 7.2 as to the sources of the funds to be used to pay the purchase price of the Notes to be purchased by such Purchaser. 

(vi) The Company and its Subsidiaries do not have any Non-U.S. Plans. 

(cc) Each of the Company’s Significant Subsidiaries, if any, (a) is a corporation, limited liability company or other type of Person
duly incorporated or formed (as the case may be), validly existing and in good standing under the laws of its jurisdiction of incorporation, organization or formation (as the case may be) and (b) has all corporate, limited liability company,
partnership or other (as the case may be) powers necessary to carry on its business substantially as now conducted, except where the failure to do so could not be reasonably expected to have a Material Adverse Effect. Each of the Company’s
Significant Subsidiaries, if any, has all material governmental licenses, authorizations, consents and approvals required to carry on its business substantially as now conducted, except where the failure to do so could not be reasonably expected to
have a Material Adverse Effect. 
 (dd) Neither the Company nor anyone acting on its behalf has offered the Notes or any similar Securities
for sale to, or solicited any offer to buy the Notes or any similar Securities from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers, each of whom has been offered the Notes at a private sale for
investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the exchange of the Notes to the registration requirements of section 5 of the Securities Act or to the registration
requirements of any Securities or blue sky laws of any applicable jurisdiction. 
 (ee) The Obligations constitute “Additional
Obligations” as defined in the Deed of Trust. 

  
 11 

 Section 7. Representations of the Purchasers. 

Section 7.1 Purchase for Investment. Each Purchaser severally represents that it is purchasing the Notes for its own account or for
one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or their property shall at
all times be within such Purchaser’s or their control. Such Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an
exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes. 

Section 7.2 Source of Funds. Each Purchaser severally represents that at least one of the following statements is an accurate
representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder: 

(a) the Source is an “insurance company general account” (as the term is defined in the United States Department of
Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the
NAIC (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on
behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the
total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or 

(b) the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under
which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner
by the investment performance of the separate account; or 
 (c) the Source is either (i) an insurance company pooled separate account,
within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the
Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective
investment fund; or 
 (d) the Source constitutes assets of an “investment fund” (within the meaning of Part VI of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption), no
employee benefit plan’s assets that are managed by the QPAM in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part
VI(c)(1) of the QPAM Exemption) of such employer 

  
 12 

 
or by the same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM
Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM maintains an ownership interest in the Company that would cause the QPAM and the Company to be “related” within the meaning of Part VI(h)
of the QPAM Exemption and (i) the identity of such QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by
the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund, have been disclosed to the Company
in writing pursuant to this clause (d); or 
 (e) the Source constitutes assets of a “plan(s)” (within the meaning of Part
IV(h) of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of
Part IV(a) of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in
Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company
in writing pursuant to this clause (e); or 
 (f) the Source is a governmental plan; or 

(g) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each
of which has been identified to the Company in writing pursuant to this clause (g); or 
 (h) the Source does not include assets of any
employee benefit plan, other than a plan exempt from the coverage of ERISA. 
 As used in this Section 7.2,
the terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA. 

Section 7.3 Separateness of the Company. Such Purchaser acknowledges and affirms that (1) it has acquired the Notes in
reliance upon the separateness of the Company, its majority owner, Oncor Electric Delivery Holdings Company LLC (“Holdings”) and each of their Subsidiaries from Sempra Energy and its Affiliates (other than the Company, Holdings and
their Subsidiaries) and (2) the Company and its Subsidiaries have assets and liabilities that are separate from those of Sempra Energy and its Affiliates (other than the Company, Holdings and their Subsidiaries). 

  
 13 

 Section 8. Covenants of the Company. 

Section 8.1 Payment of Notes. The Company shall pay the principal of and premium (including Make-Whole Amount), if any, and
interest, if any, on the Notes of each series in accordance with the terms of such Notes and this Agreement. 
 Section 8.2
Maintenance of Corporate Existence. Subject to the rights of the Company under Section 8.5, the Company shall do or cause to be done all things necessary to preserve and keep in full force and
effect its legal existence as a limited liability company. 
 Section 8.3 [Reserved]. 

Section 8.4 Limitation on Secured Debt. 

(a) The Company shall not issue any Secured Debt (other than Permitted Secured Debt), except as expressly contemplated in subsection
(b) of this Section 8.4. 
 (b) The provisions of subsection
(a) shall not prohibit the creation or existence of any Secured Debt if either: 
 (1) the Company shall make
effective provision whereby the Obligations shall be secured at least equally and ratably with such Secured Debt; or 
 (2)
such Secured Debt is issued pursuant to an Indenture and the Obligations are secured at least equally and ratably with such Secured Debt. 

Section 8.5 Consolidation, Merger, Conveyance, or Other Transfer. 

(a) The Company shall not consolidate with or merge into any other corporation, or convey or otherwise transfer, or lease, as or substantially
as an entirety the Company’s Electric Utility Property to any Person, unless: 
 (1) the corporation formed by such
consolidation or into which the Company is merged or the Person which acquires by conveyance or other transfer, or which leases, as or substantially as an entirety such Electric Utility Property shall be a corporation organized and existing under
the laws of the United States, any State or Territory thereof or the District of Columbia (such corporation being hereinafter sometimes called the “Successor Company”) and shall execute and deliver to the Purchasers a supplement to
this Agreement, which in the case of a consolidation, merger, conveyance or other transfer, or in the case of a lease if the term thereof extends beyond the last stated maturity of the Notes then outstanding, contains an express assumption by the
Successor Company of the due and punctual payment of the principal of and premium, if any, and interest, if any, on all the Notes then outstanding and the performance and observance of every covenant and condition of this Agreement to be performed
or observed by the Company. 
 (2) in the case of a lease, such lease shall be made expressly subject to termination at any
time during the continuance of an Event of Default, by (A) the Company or the Purchasers and (B) the purchaser of the property so leased at any sale thereof, whether such sale be made under the power of sale hereby conferred or pursuant to
judicial proceedings; and 

  
 14 

 (3) immediately after giving effect to such transaction (and treating any
Debt that becomes an obligation of the Successor Company as a result of such transaction as having been incurred by the Successor Company at the time of such transaction), no Default or Event of Default shall have occurred and be continuing. 

(b) Upon any consolidation or merger or any conveyance or other transfer of, as or substantially as an entirety the Company’s Electric
Utility Property in accordance with Section 8.5(a), the Successor Company shall succeed to, and be substituted for, and may exercise every power and right of, the Company under this Agreement with the
same effect as if such Successor Company had been named as the “Company” herein. 
 (c) In the case of a conveyance or other
transfer to any Person or Persons as contemplated in Section 8.5(a), upon the satisfaction of all the conditions specified in Section 8.5(a) the Company
(such term being used in this Section without giving effect to such transaction) shall be released and discharged from all obligations and covenants under this Agreement and on and under all Notes then outstanding (unless the Company
shall have delivered to the Purchasers an instrument in which it shall waive such release and discharge) and, upon request by the Company, the Purchasers shall acknowledge in writing that the Company has been so released and discharged. 

(d) Nothing in this Agreement shall be deemed to prevent or restrict any consolidation or merger after the consummation of which the Company
would be the surviving or resulting corporation or any conveyance or other transfer, or lease, of any part of the Company’s Electric Utility Property which does not constitute the entirety or substantially the entirety of its Electric Utility
Property. 
 A conveyance, transfer or lease by the Company of Electric Utility Property shall not be deemed to constitute the conveyance, transfer or lease
as or substantially as an entirety of its Electric Utility Property for purposes of this Agreement if the Fair Value of the Electric Utility Property retained by the Company exceeds 143% of the aggregate principal amount of all outstanding Notes and
any other outstanding debt securities of the Company that rank equally with, or senior to the Notes with respect to such Electric Utility Property. Such Fair Value shall be established by the delivery to the Purchasers of an Independent
Expert’s Certificate stating the Independent Expert’s opinion of such Fair Value as of a date not more than 90 days before or after such conveyance, transfer or lease; but only if the trustee under either Indenture is requiring an
Independent Expert’s Certificate with respect to any such conveyance, transfer or lease. This Section 8.5 is not intended to limit the Company’s conveyances, transfers or leases of less than
the entirety or substantially the entirety of its Electric Utility Property. For the avoidance of doubt, the requirements of this Section 8.5 shall not prohibit or restrict in any way the consummation
of the Asset Exchange or the InfraREIT Merger. 

  
 15 

 Section 8.6 Financial Ratio. 

The Company shall at all times maintain, on a consolidated basis, a Total Debt to Capitalization Ratio of not more than 0.65 to 1.00. 

Section 8.7 Compliance with Laws; Business and Properties. The Company shall, and shall cause each of its Significant Subsidiaries
to, comply with all applicable laws, whether now in effect or hereafter enacted, except (i) where the validity or applicability of such laws, rules, regulations or orders is being contested by appropriate proceedings in good faith or
(ii) where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and at all times maintain and preserve all property material to the conduct of its business in good working order, ordinary wear and tear
excepted, except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect. 

Section 8.8 Financial Statements, Reports, Etc. 

The Company shall furnish to each holder of Notes: 

(a) not later than the earlier of (i) 120 days after the end of each fiscal year of the Company and (ii) the date on which such
corresponding financial statements are delivered under any Material Credit Facility, a consolidated balance sheet of the Company and its consolidated Subsidiaries as of the end of such fiscal year and the related consolidated statements of income,
retained earnings and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon
(without a “going concern” or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such opinion is based) of independent public accountants of recognized national
standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in
conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion
in the circumstances; 
 (b) not later than the earlier of (i) 75 days after the end of each of the first three quarters of each fiscal year
of the Company and (ii) the date on which such corresponding financial statements are delivered under any Material Credit Facility, a consolidated balance sheet of the Company and its consolidated Subsidiaries as of the end of such quarter and
the related consolidated statements of income for such quarter, for the portion of the Company’s fiscal year ended at the end of such quarter, and the related consolidated statement of cash flows for the portion of the Company’s fiscal
year ended at the end of such quarter, setting forth comparative figures for the corresponding date in the previous year and period to the extent required in Form 10-Q, all certified (subject to normal year-end adjustments and absence of footnotes) as to fairness of presentation, GAAP and consistency by a Senior Financial Officer of the Company; 

  
 16 

 (c) simultaneously with any delivery of each set of financial statements referred to in
subsections (a) and (b) above, a certificate of a Senior Financial Officer of the Company (i) setting forth in reasonable detail the calculations required to establish whether the Company was in compliance with
the covenant contained in Section 8.6 on the date of such financial statements, and (ii) stating whether any Default or Event of Default exists on the date of such certificate and, if any Default
or Event of Default then exists, setting forth the details thereof and the action that the Company is taking or proposes to take with respect thereto; 

(d) forthwith upon becoming aware of the occurrence of any Default or Event of Default, a certificate of a Senior Financial Officer of the
Company setting forth the details thereof and the action that the Company is taking or proposes to take with respect thereto; 
 (e) promptly
upon the filing thereof, copies of each final prospectus (other than a prospectus included in any registration statement on Form S-8 or its equivalent or with respect to a dividend reinvestment plan) and all
reports on Forms 10-K, 10-Q and 8-K and similar reports that the Company shall have filed with the Commission, or any
Governmental Authority succeeding to any of or all the functions of the Commission; 
 (f) Employee Benefits Matters — promptly,
and in any event within 5 days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect
thereto: 
 (i) with respect to any Plan, the filing of any report or notice by the Company or any ERISA Affiliate with the
PBGC with respect to any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof and that could
reasonably be expected to have a Material Adverse Effect; 
 (ii) the taking by the PBGC of steps to institute, or the
threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a
Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan if, in any such cases, such steps or action could reasonably be expected to have a Material Adverse Effect; 

(iii) any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA
Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA
Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, could reasonably be expected to have a Material Adverse
Effect; or 
 (iv) receipt of notice of the imposition of a Material financial penalty (which for this purpose shall mean any
tax, penalty or other liability, whether by way of indemnity or otherwise) with respect to one or more Non-U.S. Plans. 

  
 17 

 The financial statements, prospectuses and reports described in subsections (a), (b) and
(e) above will be deemed to have been delivered hereunder if publicly available on the Commission’s EDGAR Database with respect to the Company or on the Company’s website no later than the date specified for delivery of same
under subsection (a), (b) or (e), as applicable, above. The Company shall have given each holder of a Note written notice, which may be by e-mail or in accordance with
Section 18, within two Business Days of such posting or filing in connection with each delivery, provided further, that upon request of any holder to receive paper copies of such forms, financial
statements, other information and Officer’s Certificates or to receive them by e-mail, the Company will promptly e-mail them or deliver such paper copies, as the
case may be, to such holder. 
 Section 8.9 Insurance. The Company shall, and shall cause each of its Subsidiaries to, at all
times maintain in full force and effect, pursuant to self-insurance arrangements or with insurance companies that the Company believes (in the good faith judgment of the management of the Company, as applicable) are financially sound and responsible
at the time the relevant coverage is placed or renewed, insurance in at least such amounts (after giving effect to any self-insurance which the Company believes (in the good faith judgment of management of the Company, as applicable) is reasonable
and prudent in light of the size and nature of its business) and against at least such risks (and with such risk retentions) as the Company believes (in the good faith judgment of management of the Company, as applicable) is reasonable and prudent
in light of the size and nature of its business. 
 Section 8.10 Taxes, Etc. The Company shall, and shall cause each of its
Subsidiaries to, pay and discharge promptly when due all material taxes, assessments and governmental charges imposed upon it or upon its income or profits or in respect of its property, as well as all other material liabilities, in each case before
the same shall become delinquent or in default and before penalties accrue thereon, unless and to the extent that the same are being contested in good faith by appropriate proceedings and adequate reserves with respect thereto shall, to the extent
required by GAAP, have been set aside. If a final company adjustment (“FPA”) occurs under the procedures of the Bipartisan Budget Act of 2015 (the “2015 Act”), then the Company shall timely elect to utilize the
alternative procedure described in Code section 6226(a) (a “Push Out Election”). 
 Section 8.11 Maintaining
Records. The Company shall, and shall cause each of its Subsidiaries to, maintain financial records in accordance with GAAP. 

Section 8.12 Use of Proceeds. The Company shall not, and shall not cause or permit any of its Subsidiaries to, use the proceeds of
the Notes for purposes other than for working capital and other general corporate purposes. The Company will not, directly or, to the knowledge of the Company, indirectly, use the proceeds of the Notes, or lend, contribute or otherwise make
available such proceeds to any Subsidiary, joint venture partner or other Person, to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of
Sanctions. No part of the proceeds of the Notes will be used, directly, or to the Company’s knowledge, indirectly, in violation of Anti-Corruption Laws or applicable Sanctions. 

Section 8.13 Transaction with Affiliates. The Company will not, and will not permit any Subsidiary to, enter into directly or
indirectly any transaction or group of related transactions (including the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except in the
ordinary 

  
 18 

 
course and pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary
than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate; provided that, the foregoing shall not prohibit (i) payment of customary fees and reasonable out-of-pocket costs to, and indemnities for the benefit of, directors, officers and employees of the Company and its Subsidiaries in the ordinary course of business,
(ii) services (including asset replacement, operation, maintenance, and corporate support services), to be provided by the Company to certain Affiliates at cost following the InfraREIT Merger pursuant to the PUCT order in Docket No. 48929
(which services, for the avoidance of doubt, may include selling or reselling goods or services to Affiliates in compliance with PUCT rules or regulations) (iii) corporate support services (as defined in 16 Texas Administrative Code
§25.272(c)(4)) provided to or from the Company or any Affiliate in compliance with PUCT rules or regulations, and (iv) any other transaction pursuant to a PUCT order or any law or regulation. 

Section 8.14 Further Assurances. The Company shall take all actions necessary to insure that the Collateral Agent, on behalf of
the Secured Parties, has and continues to have in all relevant jurisdictions duly and validly created, attached and enforceable first priority Liens on the Mortgaged Property, including perfected first-priority Liens (subject to Permitted Liens) in
accordance with the Deed of Trust. The Company shall cause the Obligations to constitute direct senior secured obligations of the Company and to be senior in right of payment and to rank senior in right of security (other than Permitted Liens) with
respect to the Mortgaged Property granted in the Deed of Trust to all other Debt of the Company (other than the Obligations (as defined in the Deed of Trust), with which it shall be pari passu in accordance with the terms of the Deed of Trust). 

Section 8.15 Economic Sanctions, Etc. The Company will not, and will not permit any Controlled Entity to (a) own or control a
Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if, to its knowledge, such
investment, dealing or transaction (i) would cause any holder of Notes or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or
subject to sanctions under any U.S. Economic Sanctions Laws. 
 Section 8.16 Reserved. 

Section 8.17 Priority Debt. The Company will not at any time permit Priority Debt to exceed the greater of 10% of the
Company’s Net Tangible Assets or 10% of Capitalization, as shown on the Company’s balance sheet most recently delivered pursuant to Section 8.8(a) or
Section 8.8(b). 
 Section 8.18 Visitation. The Company shall permit the
representatives of each holder of a Note that is an Institutional Investor: 
 (a) No Default or Event of Default — if no Default
or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries
with the Company’s officers, all at such reasonable times and as often as may be reasonably requested in writing; and 

  
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 (b) Default or Event of Default — if a Default or Event of Default then exists,
at the expense of the Company to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to
discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and
its Subsidiaries), all at such times and as often as may be requested, to the extent permitted by law or regulation. 
 Section 8.19
Line of Business. The Company will not engage in any business if, as a result, the general nature of the business in which the Company would then be engaged would be substantially changed from those of an electric transmission and
distribution company, including owning or operating equipment or facilities to transmit and distribute electricity, and engaging in any other activities related or incidental thereto or in anticipation thereof. Notwithstanding anything to the
contrary contained herein but subject to compliance with Section 8.17, the Company shall be permitted to own, purchase and acquire equity interests in, and make capital contributions and intercompany
loans to Subsidiaries. 
 Section 8.20 Sales of Assets, Etc. The Company will not make any Asset Disposition unless: 

(a) in the good faith opinion of the Company, the Asset Disposition is in exchange for consideration having a Fair Market Value at least equal
to that of the property exchanged; 
 (b) immediately after giving effect to the Asset Disposition, no Default or Event of Default would
exist; and 
 (c) the sum of the Disposition Value of the property subject to such Asset Disposition, plus the aggregate Disposition Value of
all other property that was the subject of an Asset Disposition during the fiscal year in which such Asset Disposition occurs would not exceed 10% of Consolidated Total Assets as of the last day of the most recently ended fiscal quarter of the
Company. 
 Notwithstanding the foregoing Section 8.20, if an Indebtedness Prepayment Application and/or a
Property Reinvestment Application has been made with respect to all or a portion of the Net Proceeds Amount of any Asset Disposition within one year after such Asset Disposition is consummated, then such Asset Disposition shall be deemed not to be
an Asset Disposition to the extent of such Indebtedness Prepayment Application and/or Property Reinvestment Application for the purpose of determining compliance of this Section 8.20 as of any date.

 Notwithstanding anything to the contrary herein or in any other Note Document, it is understood and agreed that the liens on and security interests in
any Mortgaged Property that is subject to an Asset Disposition permitted under Section 8.20 shall be automatically released in accordance with the Deed of Trust without the need for any further consent
from, or action by, any holder of Notes. In addition, in connection with any Asset Disposition permitted under Section 8.20, each holder of notes hereby agrees to execute and/or deliver any documents
and/or take any other action reasonably requested by the Company to further evidence or give effect to the release of liens on or security interests in any Collateral that is subject to such Asset Disposition. 

  
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 Section 8.21 Restricted Payments. The Company will not, directly or indirectly,
make or declare any Distribution to its members unless such Distribution complies with the Company’s limited liability company agreement in effect at the time of such Distribution. 

Section 8.22 Amendment to Deed of Trust. In the event the Company amends the Deed of Trust after the date of the Closing in a
manner that requires the consent of Holders of Obligations (as defined in the Deed of Trust) pursuant to Section 7.2 of the Deed of Trust, the Company agrees to use reasonable commercial efforts to include an amendment to the definition of
Additional Obligations as provided in the Deed of Trust to read as set forth in Exhibit A. 
 Section 8.23 Termination of Liens.
The Company shall within 30 days after the date of Closing file the appropriate termination and release documents after giving effect to the InfraREIT Merger in order to terminate all Liens securing the Exchanged Notes. 

Section 9. Payment and Prepayment of the Notes. 

Section 9.1 Maturity. As provided therein, the entire unpaid principal balance of each Note shall be due and payable on the
Maturity Date thereof. 
 Section 9.2 Optional Prepayments with Make-Whole Amount. 

(a) The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, any series of
Notes, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each holder of Notes written notice of each optional prepayment under this
Section 9.2 not less than ten days and not more than sixty days prior to the date fixed for such prepayment unless the Company and the Required Holders agree to another time period pursuant to
Section 16. Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of such series of Notes to be prepaid on such date, the principal amount of each Note
of such series held by such holder to be prepaid (determined in accordance with Section 9.3), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and
shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount (if any) for such series due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment),
setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the
specified prepayment date. Any notice of optional prepayment under this Section 9.2 may state that such prepayment shall be conditional upon the receipt by the Company, on or prior to the date fixed for
such prepayment, of money sufficient to pay the principal of and premium, if any, and interest, if any, on such Notes and that if such money shall not have been so received such notice shall be of no force or effect and the Company shall not be
required to prepay such Notes. In the event that such notice of optional prepayment contains such a condition and such money is not so received, the prepayment shall not be made and within a reasonable time thereafter notice shall be given, in the
manner in which the notice of optional prepayment was given, that such money was not so received and such prepayment was not required to be made, and the Company shall promptly return to the Purchasers of the Notes to have been redeemed any of such
Notes which had been surrendered for payment upon such redemption. 

  
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 (b) Notwithstanding anything contained in this
Section 9.2 to the contrary, if and so long as any Default or Event of Default shall have occurred and be continuing, any partial prepayment of the Notes pursuant to the provisions of
Section 9.2(a) shall be allocated among all of the Notes of all series of Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof. 

Section 9.3 Allocation of Partial Prepayments. In the case of each partial prepayment of a series of Notes pursuant to
Section 9.2, the principal amount of the Notes of such series to be prepaid shall be allocated among all of the Notes of such series at the time outstanding in proportion, as nearly as practicable, to
the respective unpaid principal amounts thereof not theretofore called for prepayment. 
 Section 9.4 Maturity; Surrender, Etc.
In the case of each optional prepayment of Notes of any series pursuant to this Section 9, the principal amount of each Note to be prepaid shall, subject to the satisfaction of the conditions to such
prepayment, mature and become due and payable on the date fixed for such prepayment, together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any from and after such date, unless the Company shall
fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to the
Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 

Section 9.5 Purchasers of Notes. The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise
acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with this Agreement and the Notes or (b) pursuant to an offer to purchase made by the Company or an
Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions (except to the extent necessary to reflect differences in interest rates and maturities of the Notes of different series). Any such offer shall
provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 10 Business Days. If the holders of more than 25% of the principal amount of the Notes then
outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of Notes of such offer shall be extended by the number of days necessary to give each such
remaining holder at least 5 Business Days from its receipt of such notice to accept such offer. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment or prepayment of Notes pursuant to this Agreement and
no Notes may be issued in substitution or exchange for any such Notes. 
 Section 9.6 Payments Due on
Non-Business Days. Anything in this Agreement or the Notes to the contrary notwithstanding, (x) subject to clause (y), any payment of interest on any Note that is due on a date that is not a Business
Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on 

  
 22 

 
such next succeeding Business Day; and (z) any payment of principal of or Make-Whole Amount on any Note (including principal due on the Maturity Date of such Note) that is due on a date that
is not a Business Day shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day. 

Section 9.7 Make-Whole Amount. 

“Make-Whole Amount” means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of the
Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole
Amount, the following terms have the following meanings: 
 “Called Principal” means, with respect to any Note, the
principal of such Note that is to be prepaid pursuant to Section 9.2. 
 “Discounted
Value” means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with
respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such
Called Principal. 
 “Reinvestment Yield” means, with respect to the Called Principal of any Note, .50% over the yield to
maturity implied by the yield(s) reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other
display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S. Treasury securities
(“Reported”) having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life,
then such implied yield to maturity will be determined by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between the yields Reported for
the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (2) closest to and greater than such Remaining Average
Life and (3) closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note. 

If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then
“Reinvestment Yield” means, with respect to the Called Principal of any Note, .50% over the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so
reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a

  
 23 

 
term equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average
Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury
constant maturity so reported with the term closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note. 

“Remaining Average Life” means, with respect to any Called Principal, the number of years obtained by dividing (i) such
Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a
360-day year composed of twelve 30-day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. 

“Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all payments of such
Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is
not a date on which interest payments are due to be made under the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such
Settlement Date pursuant to Section 9.4. 
 “Settlement Date” means, with
respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to Section 9.2. 

Section 9.8 Change in Control / Sanctions Event. 

(a) Notice of Change in Control. The Company will, within five (5) days after the occurrence of any Change in Control or Sanctions
Event, give written notice (the “Change in Control Notice”) of such Change in Control or Sanctions Event to each holder of Notes. Such Change in Control Notice shall contain and constitute an offer to prepay the Notes
as described in Section 9.8(b) hereof and shall be accompanied by the certificate described in Section 9.8(e). 

(b) Offer to Prepay Notes. The offer to prepay Notes shall be an offer to prepay, in accordance with and subject to this
Section 9.8, all, but not less than all, the Notes held by each holder on a date specified in such offer (the “Proposed Prepayment Date”). Such Proposed Prepayment Date shall be not
less than 15 days and not more than 30 days after the date of such offer. 
 (c) Acceptance/Rejection. A holder of Notes may accept
the offer to prepay made pursuant to this Section 9.8 by causing a notice of such acceptance to be delivered to the Company not later than 15 days after receipt by such holder of the most recent offer
of prepayment. A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 9.8 shall be deemed to constitute a rejection of such offer by such holder. 

  
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 (d) Prepayment. Prepayment of the Notes to be prepaid pursuant to this
Section 9.8 shall be at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment, but without Make-Whole Amount or other premium unless a
Sanctions Event has occurred, in which case the Make Whole Amount shall be due and payable in connection with such prepayment. The prepayment shall be made on the Proposed Prepayment Date. 

(e) Officer’s Certificate. Each offer to prepay the Notes pursuant to this
Section 9.8 shall be accompanied by a certificate, executed by a Senior Financial Officer and dated the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that
such offer is made pursuant to this Section 9.8; (iii) the principal amount of each Note offered to be prepaid; (iv) the interest that would be due on each Note offered to be prepaid, accrued to
the Proposed Prepayment Date; (v) that the conditions of this Section 9.8 have been fulfilled; and (vi) in reasonable detail, the nature and date or proposed date of the Change in Control.

 Section 9.9 Prepayment in Connection with Sales of Assets. (a) If the Company wants to offer to prepay any series of
Notes in connection with an Asset Disposition pursuant to Section 8.20, the Company will give written notice thereof to the holders of all outstanding Notes of such series, which notice shall
(i) refer specifically to Section 9.9 and describe in reasonable detail the Asset Disposition giving rise to such offer to prepay the Notes, (ii) specify the principal amount of each Note
being offered to be prepaid, (iii) specify a date not less than 30 days and not more than 60 days after the date of such notice (the “Disposition Prepayment Date”) and specify the Disposition Response Date (as defined below),
and (iv) offer to prepay on the Disposition Prepayment Date the amount specified in (ii) above with respect to each Note together with interest accrued thereon to the Disposition Prepayment Date. Each Noteholder shall notify the Company of
such Noteholder’s acceptance or rejection of such offer by giving written notice of such acceptance or rejection to the Company (provided, however, that any Noteholder who fails to so notify the Company shall be deemed to have rejected such
offer) on a date at least 5 days prior to the Disposition Prepayment Date (such date 5 days prior to the Disposition Prepayment Date being the “Disposition Response Date”), and the Company shall prepay on the Disposition Prepayment
Date the amount specified in (ii) above plus interest accrued thereon to the Disposition Prepayment Date, but without Make-Whole Amount or other premium, with respect to each Note of such series held by the Noteholders who have accepted such
offer in accordance with this Section 9.9. 
 (b) Notwithstanding anything contained in this
Section 9.9 to the contrary, if and so long as any Default or Event of Default shall have occurred and be continuing, any partial prepayment of the Notes pursuant to the provisions of
Section 9.9(a) shall be allocated among all of the Notes of all series of Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof. 

Section 10. Events of Default. 
 An
“Event of Default” shall exist if any of the following conditions or events shall occur and be continuing: 
 (a) failure to
pay any interest on any Note when it becomes due and payable and continuance of such default for a period of 5 days; or 

  
 25 

 (b) failure to pay the principal of or Make-Whole Amount, if any, on any Note when it
becomes due and payable; or 
 (c) the Company defaults in the performance of or compliance with any term contained in
Sections 8.2 and 8.6; or 
 (d) (x) the Company defaults in the performance
of or compliance with any term contained in Sections 8.4, 8.5, 8.8(d), 8.12, 8.13, 8.15, 8.17 and 8.21 and such default continues
unremedied for a period of five (5) Business Days or (y) the Company defaults in the performance of or compliance with any other term contained in this Agreement (other than a covenant or warranty a default in the performance of which or
breach of which is elsewhere in this Section 10 specifically addressed) and such default continues unremedied for a period of 30 days after the earlier of (i) a Responsible Officer obtaining actual
knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this
Section 10(d)), unless the Required Holders shall agree in writing to an extension of such period prior to its expiration; provided, however, that the Required Holders shall be deemed to have agreed to
an extension of such period if corrective action is initiated by the Company within such period and is being diligently pursued; or 
 (e)
the entry by a court having jurisdiction in the premises of (1) a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or (2) a decree or order adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition by one or more Persons other than the Company seeking reorganization, arrangement, adjustment or composition of or in
respect of the Company under any applicable Federal or State bankruptcy, insolvency or similar law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official for the Company or for any substantial
part of its property, or ordering the winding up or liquidation of its affairs, and any such decree or order for relief or any such other decree or order shall have remained unstayed and in effect for a period of 90 consecutive days; or 

(f) the commencement by the Company of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by the Company to the entry of a decree or order for relief in respect of the Company in a case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against the Company, or the filing by the Company of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State bankruptcy, insolvency, reorganization or similar law, or the consent by the Company to the filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official of the Company or of any substantial part of its property, or the making by the Company of an assignment for the benefit of creditors, or the admission by the Company in
writing of its inability to pay its debts generally as they become due, or the authorization of such action by the Board of Directors; or 

  
 26 

 (g) the sale or transfer of all or any Material part of the Mortgaged Property in
foreclosure (or deed in lieu of foreclosure) of a Lien (other than Permitted Liens) created or existing as an encumbrance on the Mortgaged Property securing the Obligations or any other Secured Debt (other than Permitted Secured Debt); or 

(h) any representation or warranty made or deemed made by the Company in or in connection with the execution and delivery of this Agreement or
the exchange of the Notes made hereunder shall prove to have been untrue in any material respect (without duplication of materiality qualifications otherwise set forth in such representations and warranties) when so made, deemed made or furnished;
or 
 (i) the Company or any Subsidiary thereof shall (i) fail to pay any principal of or premium or make-whole amount or interest,
regardless of amount, due in respect of any Debt in a principal amount in excess of $100,000,000, when and as the same shall become due and payable, subject to any applicable grace periods, or (ii) fail to observe or perform any other term,
covenant, condition or agreement contained in any agreement or instrument evidencing or governing any such Debt if the effect of any failure referred to in this clause (ii) is to cause, or to permit the holder or holders of such Debt or a
trustee on its or their behalf to cause, such Debt to become accelerated or due prior to its stated maturity; or 
 (j) one or more judgments
or orders for the payment of money in an aggregate amount in excess of $100,000,000 shall be rendered against the Company or any Subsidiary thereof or any combination thereof (to the extent not paid or covered by insurance provided by a carrier not
disputing coverage) and such judgment or order shall remain undischarged or unstayed for a period of 60 days, or any action shall be legally taken by a judgment creditor to levy upon assets or properties of the Company or any Subsidiary thereof to
enforce any such judgment or order; or 
 (k) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code
for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably
expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan
may become a subject of any such proceedings, (iii) there is any “amount of unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) under one or more Plans, determined in accordance with Title IV
of ERISA, (iv) the aggregate present value of accrued benefit liabilities under all funded Non-U.S. Plans exceeds the aggregate current value of the assets of such
Non-U.S. Plans allocable to such liabilities, (v) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the
penalty or excise tax provisions of the Code relating to employee benefit plans, (vi) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, (vii) the Company or any Subsidiary establishes or amends any employee welfare
benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of the Company or any Subsidiary thereunder, (viii) the Company or any Subsidiary fails to
administer or maintain a Non-U.S. Plan in compliance with the requirements of any and all applicable laws, statutes, rules, regulations or court orders or any Non-U.S.
Plan is involuntarily terminated or wound up, or 

  
 27 

 
(ix) the Company or any Subsidiary becomes subject to the imposition of a financial penalty (which for this purpose shall mean any tax, penalty or other liability, whether by way of
indemnity or otherwise) with respect to one or more Non-U.S. Plans; and any such event or events described in clauses (i) through (ix) above, either individually or together with any other such
event or events, could reasonably be expected to have a Material Adverse Effect. As used in this Section 10(k), the terms “employee benefit plan” and “employee welfare benefit
plan” shall have the respective meanings assigned to such terms in section 3 of ERISA; or 
 (l) any Security Document ceases
to give the Collateral Agent perfected first priority Liens (subject to Permitted Liens) purported to be created thereby in a material portion of the Mortgaged Property, taken as a whole, for any reason other than as expressly permitted hereunder or
thereunder (including by amendment, waiver and/or consent granted in accordance with the terms hereunder or thereunder) or satisfaction in full of the Obligations; or any Note Document, at any time after its execution and delivery and for any reason
other than as expressly permitted hereunder or thereunder (including by amendment, waiver and/or consent granted in accordance with the terms hereunder or thereunder) or satisfaction in full of all the Obligations, ceases to be in full force and
effect; or the Company contests in any manner the validity or enforceability of any Note Document; or the Company denies that it has any further liability or obligation under any Note Document or purports to revoke, terminate or rescind any Note
Document, other than, for each of the foregoing, as expressly permitted hereunder or thereunder (including by amendment, waiver and/or consent granted in accordance with the terms hereunder or thereunder) or satisfaction in full of the Obligations.

 Section 11. Remedies On Default, Etc. 

Section 11.1 Acceleration. 

(a) If an Event of Default with respect to the Company described in Section 10(e) or
(f) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 
 (b) If
any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable. 

(c) If any Event of Default described in Section 10(a) or (b) has occurred
and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due
and payable. 
 (d) Upon any Notes becoming due and payable under this Section 11.1, whether
automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including interest accrued at the Default Rate) and (y) the
Make-Whole Amount determined in respect of such principal amount shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and
the parties hereto agree, that each holder of a Note has the right to maintain its 

  
 28 

 
investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole
Amount by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances and does not constitute payment of
unaccrued future interest. 
 Section 11.2 Other Remedies. If any Default or Event of Default has occurred and is continuing,
and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 11.1, the holder of any Note at the time outstanding may proceed to protect and enforce
the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof
or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 
 Section 11.3 Rescission.
At any time after any Notes have been declared due and payable pursuant to Section 11.1(b) or Section 11.1(c), the Required Holders, by written notice to
the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of any Notes, all principal of and Make-Whole Amount, if any, on any Notes that are due
and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue
interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 16, and (d) no judgment
or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 11.3 will extend to or affect any subsequent Event of Default
or Default or impair any right consequent thereon. 
 Section 11.4 No Waivers or Election of Remedies, Expenses, Etc. No course
of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right, power or remedy conferred by
this Agreement or any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the
Company under Section 14, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement
or collection under this Section 11, including reasonable attorneys’ fees, expenses and disbursements. 

Section 12. Registration; Exchange; Substitution of Notes. 

Section 12.1 Registration of Notes. The Company shall keep at its principal executive office a register for the registration and
registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register. If any holder of one or more
Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes 

  
 29 

 
shall also be registered in such register as an owner and holder thereof and (b) at any such beneficial owner’s option, either such beneficial owner or its nominee may execute any
amendment, waiver or consent pursuant to this Agreement or any other Note Document. Prior to due presentment for registration of transfer, the Person(s) in whose name any Note(s) shall be registered shall be deemed and treated as the owner and
holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and
correct copy of the names and addresses of all registered holders of Notes. 
 Section 12.2 Transfer and Exchange of Notes. Upon
surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 17(iii)), for registration of transfer or exchange (and in the case of a
surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and
other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes of the same
series (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall
be substantially in the form of Error! Reference source not found. or Error! Reference source not found., as applicable. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on
the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of
Notes. Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than
$100,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 7.1. The transferee of any
Note in accordance with Section 12.1 shall have all rights, benefits and obligations of the holders of such Note under the Note Documents as if such holder were an original signatory hereto without any
further action being required under the Note Documents. 
 Section 12.3 Replacement of Notes. Upon receipt by the Company at the
address and to the attention of the designated officer (all as specified in Section 17(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation
of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and 

(a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is,
or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $50,000,000 or a Qualified Institutional Buyer (as defined in Rule 144A of the Securities Act), such Person’s own unsecured agreement of
indemnity shall be deemed to be satisfactory), or 

  
 30 

 (b) in the case of mutilation, upon surrender and cancellation thereof, within ten Business
Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the
date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 
 Section 13. Payments On Notes. 

Section 13.1 Place of Payment. Subject to Section 13.2, payments of principal,
Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, NY at the principal office of JPMorgan Chase Bank, N.A. in such jurisdiction. The Company may at any time, by notice to each holder of a Note,
change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction. 

Section 13.2 Payment by Wire Transfer. The Company will pay all sums becoming due on such Note for principal, Make-Whole Amount,
if any, interest and all other amounts becoming due hereunder by the method and at the address specified for such purpose below such Purchaser’s name in Schedule B, or by such other method or at such other address as such
Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently
with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of
payment most recently designated by the Company. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last
date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 12.2. The Company will afford the benefits of this
Section 13.2 to any Institutional Investor that is the direct or indirect transferee in accordance with Section 12.1 of any Note purchased by
a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 13.2. 

Section 14. Expenses, Etc. 

Section 14.1 Transaction Expenses. Whether or not the transactions contemplated hereby are consummated, the Company will pay all
costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a Note in connection with such
transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement, the Notes or any other Note Document (whether or not such amendment, waiver or consent becomes effective), including, without limitation:
(a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement, the Notes or any other Note Document or in responding to any subpoena or other legal process or
informal investigative demand issued (i) in connection with this Agreement, the Notes or any other Note Document, or (ii) by reason of being a holder of any Note, (b) the costs and expenses, including financial advisors’ fees,
incurred in connection with the insolvency or bankruptcy of the Company or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and any other Note Document
and (c) the costs and 

  
 31 

 
expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO provided, that such costs and expenses under this
clause (c) shall not exceed $3,500 per series of Notes. The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, (i) all claims in respect of any fees, costs or expenses,
if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes), (ii) any and all wire transfer fees that any bank deducts from any payment under such Note to such
holder or otherwise charges to a holder of a Note with respect to a payment under such Note and (iii) any judgment, liability, claim, order, decree, fine, penalty, cost, fee, expense (including reasonable attorneys’ fees and expenses) or
obligation resulting from the consummation of the transactions contemplated hereby, including the use of the proceeds of the Notes by the Company. 

Section 14.2 Survival. The obligations of the Company under this Section 14 will
survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement, the Notes or any other Note Document, and the termination of this Agreement. 

Section 15. Survival of Representations and Warranties; Entire Agreement. 

All representations and warranties contained herein shall survive the execution and delivery of this Agreement, the Notes and the other Note
Documents, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on
behalf of such Purchaser or any other holder of a Note; provided that, no representation or warranty shall be deemed to be made as of any time other than the date of execution and delivery of this Agreement, the Notes or the other Note
Documents, as applicable. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement or the other Note Documents shall be deemed representations and warranties of the Company
under this Agreement. Subject to the preceding sentence, this Agreement, the Notes and any other Note Documents embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and
understandings relating to the subject matter hereof. 
 Section 16. Amendment and Waiver. 

Section 16.1 Requirements. This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes or
any Default or Event of Default may be waived (either retroactively or prospectively), only with the written consent of the Company and the Required Holders, except that: 

(a) no amendment or waiver of any of Section 1, 2, 3,
4, 5, 6, 7 or 201 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing; and 

  
 32 

 (b) no amendment or waiver may, without the written consent of each holder of each Note at
the time outstanding, (i) subject to Section 11 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time
of payment or method of computation of (x) interest on the Notes or (y) the Make-Whole Amount, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any amendment or waiver or
the principal amount of the Notes that the Purchasers are to receive in exchange for their Exchanged Notes pursuant to Section 2 upon the satisfaction of the conditions to the Closing that appear in
Section 4 or (iii) amend any of Sections 9 (except as set forth in the second sentence of Section 9.2), 10(a),
10(b), 11, 16 or 19. 
 Notwithstanding the foregoing, the Deed of Trust and any other Security
Document may be amended as provided in the Deed of Trust or such applicable Security Document. 
 Section 16.2 Solicitation of
Holders of Notes. 
 (a) Solicitation. The Company will provide each holder of a Note with sufficient information, sufficiently
far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes. The Company
will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to this Section 16 to each holder of a Note promptly following the date on which it is executed
and delivered by, or receives the consent or approval of, the requisite holders of Notes. 
 (b) Payment. The Company will not
directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of a Note as consideration for or as an
inducement to the entering into by such holder of any waiver or amendment of any of the terms and provisions hereof or any Note unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently
provided, on the same terms, ratably to each holder of a Note even if such holder did not consent to such waiver or amendment. 
 (c)
Consent in Contemplation of Transfer. Any consent given pursuant to this Section 16 by a holder of a Note that has transferred or has agreed to transfer its Note to (i) the Company,
(ii) any Subsidiary or any other Affiliate or (iii) any other Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Company and/or any of its Affiliates (either
pursuant to a waiver under Section 16.1 or subsequent to Section 9.5 having been amended pursuant to
Section 16.1), in each case in connection with such consent, shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or
granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except
solely as to such holder. 
 Section 16.3 Binding Effect, Etc.. Any amendment or waiver consented to as
provided in this Section 16 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been
marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of
dealing between the Company and any holder of a Note and no delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note. 

  
 33 

 Section 16.4 Notes Held by Company, Etc.. Solely for the purpose of
determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the
taking of any action provided herein or the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its
Affiliates shall be deemed not to be outstanding. 
 Section 17. Notices. 

All notices and communications provided for hereunder shall be in writing and sent (a) by facsimile or telecopy if the sender on the same
day sends a confirming copy of such notice by an internationally recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by an internationally
recognized overnight delivery service (with charges prepaid). Any such notice must be sent: 
 (i) if to any Purchaser or its
nominee, to such Purchaser or nominee at the address specified for such communications in Schedule B, or at such other address as such Purchaser or nominee shall have specified to the Company in writing, 

(ii) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the
Company in writing, or 
 (iii) if to the Company, to the Company at its address set forth at the beginning hereof to the
attention of the treasurer, or at such other address as the Company shall have specified to the holder of each Note in writing. 
 Notices under this
Section 17 will be deemed given only when actually received. 
 Section 18. Reproduction of
Documents. 
 This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and
modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any
Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent
permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such
Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 18 shall not prohibit the
Company or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. 

  
 34 

 Section 19. Confidential Information. 

For the purposes of this Section 19, “Confidential Information” means
Information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement, provided that such term does not include information that
(a) other than as a result of disclosure by any other Purchaser or its employees or agents in violation of this Section 19, was publicly known or otherwise known to such Purchaser prior to the time
of such disclosure, (b) other than as a result of disclosure by any other Purchaser or its employees or agents in violation of this Section 19, subsequently becomes publicly known through no act or
omission by such Purchaser or any Person acting on such Purchaser’s behalf, or (c) other than as a result of disclosure by any other Purchaser or its employees or agents in violation of this
Section 19, otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary. “Information” means information concerning the Company or its
Subsidiaries, irrespective of its source or form of communication, furnished by or on behalf of the Company or any of its Subsidiaries, including without limitation notes, analyses, compilations, studies or other documents or records prepared by any
Purchaser, which contain or reflect or were generated from information supplied by or on behalf of the Company or its Subsidiaries. Each Purchaser will use the Confidential Information solely for purposes pertinent to such Purchaser’s
evaluation, holding, monitoring, enforcement, permitted transfers and uses ancillary to the foregoing, all in respect of the Notes, and will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such
Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents,
attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its auditors, financial advisors and other professional advisors who agree to hold
confidential the Confidential Information substantially in accordance with this Section 19, (iii) any other holder of any Note, (iv) any Institutional Investor to which it sells or offers to
sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 19), (v) any
Person from which it offers to purchase any Security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 19),
(vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information
about such Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such
Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may
reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes, this Agreement or any other Note Document. Each holder of a Note,
by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 19 as though it were a party to this Agreement. On reasonable request by the
Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such
holder will enter into an agreement with the Company embodying this Section 19. 

  
 35 

 In the event that as a condition to receiving access to information relating to the Company
or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement or any other Note Document, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through
IntraLinks, another secure website, a secure virtual workspace or otherwise) which is different from this Section 19, this Section 19 shall not be amended
thereby and, as between such Purchaser or such holder and the Company, this Section 19 shall supersede any such other confidentiality undertaking. 

Section 20. Substitution of Purchaser. 

Each Purchaser shall have the right to substitute any one of its Affiliates or another Purchaser or any one of such other Purchaser’s
Affiliates (a “Substitute Purchaser”) as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Substitute Purchaser, shall
contain such Substitute Purchaser’s agreement to be bound by this Agreement and shall contain a confirmation by such Substitute Purchaser of the accuracy with respect to it of the representations set forth in
Section 7.1. Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 20), shall be deemed to refer to
such Substitute Purchaser in lieu of such original Purchaser. In the event that such Substitute Purchaser is so substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser all of the Notes then
held by such Substitute Purchaser, upon receipt by the Company of notice of such transfer, any reference to such Substitute Purchaser as a “Purchaser” in this Agreement (other than in this
Section 20), shall no longer be deemed to refer to such Substitute Purchaser, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original
holder of Notes under this Agreement. 
 Section 21. Miscellaneous. 

Section 21.1 Successors and Assigns. All covenants and other agreements contained in this Agreement by or on behalf of any of the
parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not. 

Section 21.2 Accounting Terms. All accounting terms used herein which are not expressly defined in this Agreement have the
meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements
shall be prepared in accordance with GAAP. For purposes of determining compliance with this Agreement (including Section 8 and the definition of “Indebtedness”), any election by
the Company to measure any financial liability using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic
No. 825-10-25 – Fair Value Option, International Accounting Standard 39 – Financial Instruments: Recognition and Measurement or any similar
accounting standard) shall be disregarded and such determination shall be made as if such election had not been made. 

  
 36 

 Section 21.3 Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction. 

Section 21.4 Construction, Etc. Each covenant contained herein shall be construed (absent express provision to the contrary) as
being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant Where any provision herein refers to
action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person. 

Section 21.5 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but
all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. 

Section 21.6 Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall
be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a
jurisdiction other than such State. 
 Section 21.7 Specific Performance. It is understood and agreed by the parties to this
Agreement that money damages may not be a sufficient remedy for a beach of this Agreement by any party hereto and each non-breaching party shall be entitled to seek specific performance and injunctive or other
equitable relief (including reasonable and documented attorneys’ fees and costs) as a remedy with respect to any such breach, without the necessity of proving the inadequacy of money damages as a remedy. 

Section 21.8 Jurisdiction and Process; Waiver of Jury Trial. 

(a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal
court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, the Company irrevocably waives and
agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. 

(b) The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature
referred to in Section 21.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address
specified in Section 17 or at such other address of which such holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt (i) shall be
deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to
it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service. 

  
 37 

 (c) Nothing in this Section 21.8 shall affect
the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce
in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction. 
 (d) THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY
IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH. 

Section 21.9 Indemnification. The Company shall pay, indemnify and save harmless each holder of Notes that has notified the
Company in writing no later than five Business Days after the date of this Agreement that it elects to be a beneficiary of the indemnity set forth in this Section 21.9 (each such holder, an
“Electing Noteholder”) from and against any and all liabilities, costs and expenses, claims, demands or judgments arising from or in connection with any income tax owed by an Electing Noteholder as a result of the issuance of new
Notes by the Company in exchange for the Notes originally issued by SDTS constituting a taxable event for income tax purposes. The indemnification contained in this Section 21.9 shall survive the
payment or transfer of any Note and the termination of the Agreement. Ordinarily, holders of Notes that purchased the Notes originally issued by SDTS at par will not recognize gain or loss for U.S. federal income tax purposes on the exchange of the
original Notes for the new Notes. If a Purchaser becomes an Electing Noteholder, the Company, in its sole discretion at any time prior to the Closing, may by written notice to such Electing Noteholder exclude such Electing Noteholder from the
Closing, whereupon such Electing Noteholder’s Exchanged Notes shall remain outstanding in accordance with their terms and not be exchanged for Notes and such Electing Noteholder shall have no further rights and obligations under this Agreement.

 * * * * * 

  
 38 

 If you are in agreement with the foregoing, please sign the form of agreement on a
counterpart of this Agreement and return it to the Company, whereupon this Agreement shall become a binding agreement between you and the Company. 
  

			
	 Very truly yours,
  

ONCOR ELECTRIC DELIVERY COMPANY LLC

		
	By:	 	/s/ Kevin R. Fease
		 	Name: Kevin R. Fease
		 	Title: Vice President and Treasurer

 [Signature Page to Note Purchase Agreement] 

 This Agreement is hereby 

accepted and agreed to as 
 of the date hereof. 

 

			
	 MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

By: Barings LLC as Investment Adviser

		
	By:	 	/s/ John B. Wheeler
		 	Name: John B. Wheeler
		 	Title: Managing Director
	
	 C.M. LIFE INSURANCE COMPANY
 By:
Barings LLC as Investment Adviser

		
	By:	 	/s/ John B. Wheeler
		 	Name: John B. Wheeler
		 	Title: Managing Director
	
	 YF LIFE INSURANCE INTERNATIONAL LIMITED

By: Barings LLC as Investment Adviser

		
	By:	 	/s/ John B. Wheeler
		 	Name: John B. Wheeler
		 	Title: Managing Director
	
	 BANNER LIFE INSURANCE COMPANY
 By:
Barings LLC as Investment Adviser

		
	By:	 	/s/ John B. Wheeler
		 	Name: John B. Wheeler
		 	Title: Managing Director

 [Signature Page to Note Purchase Agreement] 

 This Agreement is hereby 

accepted and agreed to as 
 of the date hereof. 

 

			
	COBANK, ACB
		
	By:	 	/s/ C. Brock Taylor
		 	Name: C. Brock Taylor
		 	Title: Managing Director

 [Signature Page to Note Purchase Agreement] 

 This Agreement is hereby 

accepted and agreed to as 
 of the date hereof. 

 

			
	 THE GIBRALTAR LIFE INSURANCE CO., LTD.
  

By: Prudential Investment Management Japan Co., Ltd., as Investment Manager
  

By: PGIM, Inc., as Sub-Adviser

		
	By:	 	/s/ Richard Carrell
		 	Name: Richard Carrell
		 	Title: Vice President
	
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
		
	By:	 	/s/ Richard Carrell
		 	Name: Richard Carrell
		 	Title: Vice President
	
	 PRUDENTIAL ARIZONA REINSURANCE CAPTIVE COMPANY
  

By: PGIM, Inc., as investment manager

		
	By:	 	/s/ Richard Carrell
		 	Name: Richard Carrell
		 	Title: Vice President

 [Signature Page to Note Purchase Agreement] 

 This Agreement is hereby 

accepted and agreed to as 
 of the date hereof. 

 

			
	THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA
		
	By:	 	/s/ John W. Kunkle
		 	Name: John W. Kunkle
		 	Title: Managing Director

 [Signature Page to Note Purchase Agreement] 

 This Agreement is hereby 

accepted and agreed to as 
 of the date hereof. 

 

			
	USAA LIFE INSURANCE COMPANY
		
	By:	 	/s/ James F. Jackson, Jr.
		 	Name: James F. Jackson, Jr.
		 	Title: Assistant Vice President
	
	USAA LIFE INSURANCE COMPANY OF NEW YORK
		
	By:	 	/s/ James F. Jackson, Jr.
		 	Name: James F. Jackson, Jr.
		 	Title: Assistant Vice President
	
	USAA CASUALTY INSURANCE COMPANY
		
	By:	 	/s/ James F. Jackson, Jr.
		 	Name: James F. Jackson, Jr.
		 	Title: Assistant Vice President
	
	USAA GENERAL INDEMNITY COMPANY
		
	By:	 	/s/ James F. Jackson, Jr.
		 	Name: James F. Jackson, Jr.
		 	Title: Assistant Vice President

 [Signature Page to Note Purchase Agreement] 

 This Agreement is hereby 

accepted and agreed to as 
 of the date hereof. 

 

			
	 DEARBORN NATIONAL LIFE INSURANCE COMPANY

AMERICAN REPUBLIC INSURANCE COMPANY
 CATHOLIC FINANICAL LIFE

CATHOIC UNITIED FINANCIAL
 ROYAL NEIGHBORS OF AMERICA

POLISH NATIONAL ALLIANCE OF THE U.S. OF N.A.
 MINNESOTA LIFE
INSURANCE COMPANY
  
 By: Securian Asset Management, Inc. (f/k/a Advantus Capital
Management, Inc.)

		
	By:	 	/s/ Chris P. Gudmastad
	Name:	 	Chris P. Gudmastad
	Title:	 	Vice President

 [Signature Page to Note Purchase Agreement] 

 SCHEDULE A 

DEFINED TERMS 
 As used
herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term: 

“2015 Act” is defined in Section 8.10. 

“Affiliate” (a) has the meaning assigned thereto in Rule 501(b) under the Securities Act for purposes of
Section 6 and (b) for all other purposes hereunder, means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries
Controls, or is Controlled by, or is under common Control with, such first Person. As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.

 “Agreement” means this Agreement, including all Schedules attached to this Agreement, as it may be amended, restated,
supplemented or otherwise modified from time to time. 
 “Anti-Corruption Laws” means any law or regulation in a U.S. or
any non-U.S. jurisdiction applicable to the Company or any of its Subsidiaries regarding bribery or any other corrupt activity. 

“Anti-Money Laundering Laws” means any law or regulation in a U.S. or any non-U.S.
jurisdiction applicable to the Company or any of its Subsidiaries regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes. 

“Asset Disposition” means any Transfer except: 

(a) any Transfer from the Company or any Subsidiary to the Company or any Subsidiary; 

(b) any Transfer made in the ordinary course of business and involving only inventory or any other property that is either
(1) held for lease or sale or (2) worn-out, obsolete, surplus or no longer required in the operation of the business of the Company or any of its Subsidiaries; 

(c) any Transfer or series of related Transfers involving property or assets having a Disposition Value of less than
$20,000,000; and 
 (d) Dispositions permitted by Section 8.5, Liens permitted
by Section 8.4, Distributions permitted by Section 8.21 and capital contributions to Subsidiaries permitted by
Section 8.19. 

  
 Schedule A-1 

 “Asset Exchange” means the transactions set forth in the Exchange
Agreement, pursuant to which certain assets will be exchanged between SDTS and SU, with such exchange effectuated pursuant to a joint survivor merger of SDTS and SU, and with both entities surviving the merger. 

“Authorized Officer” means the Chief Executive Officer, the Chief Financial Officer, any Vice President, the Treasurer, the
Secretary, any Assistant Treasurer, any Assistant Secretary or any other officer, manager or agent of the Company duly authorized pursuant to a Board Resolution to act in respect of matters relating to this Agreement. 

“Blocked Person” means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons
published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of,
or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b). 

“Board of Directors” means either the board of directors, board of managers or similar governing body of the Company or any
committee thereof duly authorized to act in respect of matters relating to this Agreement. 
 “Board Resolution” means a
copy of a resolution certified by the Secretary, an Assistant Secretary or an Authorized Officer of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered
to the Purchasers. 
 “BONY” means The Bank of New York Mellon Trust Company, N.A. (as successor to The Bank of New York
Mellon, formerly The Bank of New York). 
 “Business Day” means (a) for the purposes of
Section 9.7 only, any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are required or authorized to be closed, and (b) for the purposes of any other
provision of this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Dallas, Texas are required or authorized to be closed. 

“Called Principal” is defined in Section 9.7. 

“Capitalization” means the total of all the following items appearing on, or included in, the Company’s unconsolidated
balance sheet: (a) liabilities for indebtedness maturing more than 12 months from the date of determination, and (b) membership interests, common stock, common stock expense, accumulated other comprehensive income or loss, preferred stock,
preference stock, premium on common stock and retained earnings (however the foregoing may be designated), less, to the extent not otherwise deducted, the cost of shares of the Company’s capital stock held in the Company’s treasury, if
any. Capitalization shall be determined in accordance with generally accepted accounting principles and practices applicable to the type of business in which the Company is engaged, and may be determined as of the date not more than 60 days prior to
the happening of the event for which the determination is being made. 

  
 Schedule A-2 

 “Capitalized Lease Liabilities” means the amount, if any, shown as
liabilities on the Company’s unconsolidated balance sheet for capitalized leases of electric transmission and distribution property not owned by the Company, which amount shall be determined in accordance with generally accepted accounting
principles and practices applicable to the type of business in which the Company is engaged. 
 “Capital Stock” of
any Person means any and all shares, interests, rights to purchase, warrants, options, participation, patronage capital or other equivalents of or interest in (however designated) equity of such Person, including any preferred stock, any limited or
general partnership interest and any limited liability company membership interest. 
 “CEII” means Critical Energy
Infrastructure Information pursuant to, and as defined under, 18 C.F.R. § 388.113(c)(2). 
 “Change in Control” means,
and shall be deemed to have occurred, if any Person or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), other than one or more Permitted Holders, shall at any time have acquired direct or indirect
beneficial ownership of a percentage of the voting power of the outstanding Voting Shares of the Company that exceeds 35% thereof, unless one or more Permitted Holders has, at such time, the right or the ability by voting power, contract or
otherwise to elect or designate for election at least a majority of the non-independent members of the board of directors of the Company. 

“Closing” is defined in Section 3. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and regulations promulgated thereunder from
time to time. 
 “Collateral Agent” means BONY, acting in its capacity as collateral agent and trustee under the Deed of
Trust. 
 “Commission” means the Securities and Exchange Commission. 

“Company” means Oncor Electric Delivery Company LLC, a Delaware limited liability company, or any successor that becomes such
in the manner prescribed in Section 8.5. 
 “Confidential Information” is
defined in Section 19. 
 “Consolidated Total Assets” means, at any
time, the total assets of the Company and its Subsidiaries which would be shown on a consolidated balance sheet of the Company and its Subsidiaries as of such time prepared in accordance with GAAP. 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by contract or otherwise; and the terms “Controlled” and “Controlling” shall have meanings correlative to the foregoing. 

“Controlled Entity” means any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled
Affiliates. 

  
 Schedule A-3 

 “corporation” means a corporation, association, company, limited
liability company, partnership, limited partnership, joint stock company or business trust, and references to “corporate” and other derivations of “corporation” herein shall be deemed to include appropriate
derivations of such entities. 
 “Debt”, with respect to any Person, means (a) indebtedness of such Person for
borrowed money evidenced by a bond, debenture, note or other written instrument or agreement by which such Person is obligated to repay such borrowed money, (b) any guaranty by such Person of any such indebtedness of another Person, and
(c) any Capitalized Lease Liabilities of the Company. “Debt” does not include, among other things, (w) indebtedness of such Person under any installment sale or conditional sale agreement or any other agreement relating to
indebtedness for the deferred purchase price of property or services, (x) any trade obligation (including obligations under power or other commodity purchase agreements and any hedges or derivatives associated therewith), or other obligations
of such Person in the ordinary course of business, (y) obligations of such Person under any lease agreement that are not Capitalized Lease Liabilities, or (z) any Liens securing indebtedness, neither assumed nor guaranteed by the Company
nor on which it customarily pays interest, existing upon real estate or rights in or relating to real estate acquired by the Company for substation, transmission line, transportation line, distribution line or right of way purposes. 

“Debt Ratings” means the ratings (whether explicit or implied) assigned by S&P and Moody’s to the senior secured non-credit enhanced long term debt of the Company. 
 “Deed of Trust” means the Deed of
Trust, Security Agreement and Fixture Filing, dated as of May 15, 2008, by the Company, to and for the benefit of the Collateral Agent, as amended or otherwise modified from time to time. 

“Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the
giving of notice or both, become an Event of Default. 
 “Default Rate” means that rate of interest per annum that is the
greater of (a) 2.00% above the rate of interest stated in clause (a) of the first paragraph of the Notes or (b) 2.00% over the rate of interest publicly announced by Wells Fargo Bank, N.A. in New York, New York as its
“base” or “prime” rate. 
 “Discounted Value” is defined in
Section 9.7. 
 “Disposition Value” means, at any time, with respect
to any property 
 (a) in the case of property that does not constitute Subsidiary Stock, the book value thereof, valued at
the time of such disposition in good faith by the Company, and 
 (b) in the case of property that constitutes Subsidiary
Stock, an amount equal to (x) the book value of all assets of the Subsidiary that issued such Subsidiary Stock multiplied by (y) the percentage of all of the outstanding Capital Stock of such Subsidiary represented by such
Subsidiary Stock subject to an Asset Sale (assuming, in making such calculations, that all Securities convertible into such Capital Stock are so converted and giving full effect to all transactions that would occur or be required in connection with
such conversion), determined at the time of the disposition thereof, in good faith by the Company. 

  
 Schedule A-4 

 “Distributions” means, with respect to any Person, any dividend or
other distribution (whether in cash, securities or other property) with respect to any Capital Stock of such Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of
the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any such Capital Stock or on account of any return of capital to such Person’s stockholders, partners or members (or the equivalent Person thereof) as
such, or any option, warrant or other right to acquire any such dividend or other distribution or payment. 
 “Electric Utility
Property” means any facilities, machinery, equipment and fixtures for the transmission and distribution of electric energy, including switchyards, towers, substations, transformers, poles, lines, cable, conduits, ducts, conductors, meters,
regulators and all other property of the Company, real or personal, or improvements, extensions, additions, renewals or replacements of the foregoing, in each case used or useful or to be used in or in connection with the business of transmitting
and distributing electric energy, whether owned by the Company at the Closing or hereafter acquired (other than Excepted Property with respect to all of the property described in this definition). 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect. 
 “ERISA Affiliate” means any trade or business (whether
or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code. 
 “Event of
Default” is defined in Section 10. 
 “Excepted Property” means:

 (a) all cash on hand or in banks or other financial institutions, deposit accounts, securities accounts, shares of stock,
interests in business trusts, general or limited partnerships or limited liability companies, bonds, notes, other evidences of indebtedness and other securities, security entitlements and investment property, of whatsoever kind and nature, not
hereafter paid or delivered to, deposited with or held by the Collateral Agent hereunder or required so to be; 
 (b) all
contracts, leases, operating agreements and other agreements of whatsoever kind and nature; all contract rights, bills, notes and other instruments and chattel paper (except to the extent that any of the same constitute securities, security
entitlements or investment property, in which case they are separately excepted under clause (a) above); all revenues, income and earnings, all accounts, accounts receivable, rights to payment, payment intangibles and unbilled
revenues, transition property, and all rents, tolls, issues, product and profits, claims, credits, demands and judgments; all governmental and other licenses, permits, franchises, consents and allowances; all patents, patent licenses and other
patent rights, patent applications, trade names, trademarks, copyrights and other intellectual property; and all claims, credits, choses in action, commercial tort claims and other intangible property and general intangibles including, but not
limited to, computer software; 

  
 Schedule A-5 

 (c) all automobiles, buses, trucks, truck cranes, tractors, trailers and
similar vehicles and movable equipment; all rolling stock, rail cars and other railroad equipment; all vessels, boats, barges, and other marine equipment; all airplanes, helicopters, aircraft engines and other flight equipment; all parts,
accessories and supplies used in connection with any of the foregoing; and all personal property of such character that the perfection of a security interest therein or other Lien thereon is not governed by the Uniform Commercial Code as in effect
in the jurisdiction in which such property is located; 
 (d) all goods, stock in trade, wares, merchandise and inventory
held for the purpose of sale or lease in the ordinary course of business; all materials, supplies, inventory and other items of personal property which are consumable (otherwise than by ordinary wear and tear) in their use in the operation of the
Electric Utility Property; all fuel, including nuclear fuel, whether or not any such fuel is in a form consumable in the operation of the Electric Utility Property, including separate components of any fuel in the forms in which such components
exist at any time before, during or after the period of the use thereof as fuel; all hand and other portable tools and equipment; all furniture and furnishings; and computers and data processing, data storage, data transmission, telecommunications
and other facilities, equipment and apparatus, which, in any case, are used primarily for administrative or clerical purposes or are otherwise not necessary for the operation or maintenance of the Electric Utility Property; 

(e) all coal, lignite, ore, gas, oil and other minerals and all timber, and all rights and interests in any of the foregoing,
whether or not such minerals or timber shall have been mined or extracted or otherwise separated from the land; and all electric energy and capacity, gas (natural or artificial), steam, water and other products generated, produced, manufactured,
purchased or otherwise acquired by the Company; 
 (f) all real property, leaseholds, gas rights, wells, gathering, tap or
other pipe lines, or facilities, equipment or apparatus, in any case used or to be used primarily for the production or gathering of natural gas; 

(g) all property which is the subject of a lease agreement designating the Company as lessee and all right, title and interest
of the Company in and to such property and in, to and under such lease agreement, whether or not such lease agreement is intended as security; 

(h) all property located outside of the State of Texas; 

(i) any and all property and plants used by the Company in the generation of electricity; and 

(j) all property not acquired or constructed by the Company for use in its electric transmission and distribution business.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

  
 Schedule A-6 

 “Exchange Act Documents” means all forms, reports, statements,
certifications, schedules and other documents (including all exhibits, amendments and supplements thereto) filed by the Company with the Commission from and after January 1, 2018 up to and including the date of the Closing. 

“Exchange Agreement” means the Agreement and Plan of Merger dated as of October 18, 2018, by and among SDTS, SU and the
Company, as may be amended from time to time in accordance with its terms. 
 “Exchanged Notes” is defined in
Section 2. 
 “Fair Market Value” has the meaning assigned to
“Fair Value” in the Deed of Trust. 
 “Fair Value”, with respect to property, means the fair value of such
property as may be determined by reference to (a) the amount which would be likely to be obtained in an arm’s-length transaction with respect to such property between an informed and willing buyer
and an informed and willing seller, under no compulsion, respectively, to buy or sell, (b) the amount of investment with respect to such property which, together with a reasonable return thereon, would be likely to be recovered through ordinary
business operations or otherwise, (c) the cost, accumulated depreciation, and replacement cost with respect to such property and/or (d) any other relevant factors; provided, however, that the Fair Value of property shall be determined
without deduction for any Liens on such property. Fair Value may be determined, without physical inspection, by the use of accounting and engineering records and other data maintained by the Company or otherwise available to the Expert certifying
the same. 
 “FATCA” means Sections 1471 through 1474 of the Code, as amended, any current or future regulations or
official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code, and any fiscal or
regulatory legislation, rules or practices adopted pursuant to such intergovernmental agreement. 
 “FCPA” means the
Foreign Corrupt Practices Act of 1977, as may be amended. 
 “Financial Statements” means the financial statements of the
Company delivered to the Commission on Form 10-K in respect of the fiscal year ended December 31, 2018. 

“FPA” is defined in Section 8.10. 

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States. 

“Governmental Authority” means the government of the United States or of any State or Territory thereof or of the District of
Columbia or of any county, municipality or other political subdivision of any thereof, or any department, agency, authority or other instrumentality of any of the foregoing. 

  
 Schedule A-7 

 “holder” means, with respect to any Note, the Person in whose name such
Note is registered in the register maintained by the Company pursuant to Section 12.1, provided, however, that if such Person is a nominee, then for the purposes of
Section 11, and 17 and any related definitions in this Schedule A, “holder” shall mean the beneficial owner of such Note whose name and address appears in
such register. 
 “Indebtedness Prepayment Application” means, with respect to any Transfer of property constituting an
Asset Disposition, the application by the Company or any Subsidiary of cash in an amount equal to the Net Proceeds Amount (or portion thereof) with respect to such Asset Disposition (or, with respect to the Notes issued hereunder, an offer by the
Company or any Subsidiary to apply such Net Proceeds Amount (or portion thereof), regardless of whether such offer is accepted) to repay or retire Permitted Secured Debt; provided, that with respect to any such revolving Permitted Secured Debt, the
amount of the Indebtedness Prepayment Application with respect thereto shall be deemed to be equal to the amount of any such repayment or retirement to the extent that there has been a commitment reduction in respect thereof; provided further that
in the course of making the initial application (or initial offer in respect of such application) the Company shall (i) offer to prepay each outstanding Note in accordance with Section 9.9
in a principal amount which is at least equal to the Ratable Portion for such Note (the “Initial Offer”) and (ii) for those holders of Notes who have accepted the Initial Offer, offer to prepay the outstanding Notes of each
such holder in a principal amount which is at least equal to such holder’s pro rata portion (determined based on the aggregate amount of Notes held by such holder that were accepted by such holder to be prepaid pursuant to the Initial Offer) of
the amount offered to be prepaid pursuant to the Initial Offer that has been rejected by the other holders (the “Additional Offer”), such Additional Offer to provide at least 3 days to accept or reject such Additional Offer. Failure
to respond shall constitute a rejection of such Additional Offer. “Ratable Portion” for any Note means an amount equal to the product of (x) the Net Proceeds Amount (or portion thereof) being so applied to the payment of
Permitted Secured Debt multiplied by (y) a fraction the numerator of which is the outstanding principal amount of such Note and the denominator of which is the aggregate principal amount of Permitted Secured Debt of the Company and its
Subsidiaries outstanding at such time; provided that the outstanding principal amount of any revolving Permitted Secured Debt will not be included in such denominator except to the extent an Indebtedness Prepayment Application is being made with
respect thereto in accordance with the preceding sentence. 
 “Indentures” means, collectively, (a) the Indenture and
Deed of Trust, dated as of May 1, 2002, between the Company and BONY and (b) the Indenture (For Unsecured Debt Securities), dated as of August 1, 2002, between the Company and BONY, in each case as supplemented or otherwise modified
from time to time. 
 “Independent Expert” shall have the meaning set forth in the Indentures. 

“Independent Expert’s Certificate” means a certificate signed by an Independent Expert in the form delivered to the
trustees under the Indentures. 
 “InfraREIT” means InfraREIT, Inc., a Maryland corporation. 

  
 Schedule A-8 

 “InfraREIT Merger” means the transactions set forth in the Merger Agreement
pursuant to which the parties thereto will effect a business combination, as more specifically described in the Merger Agreement, through (a) a merger of InfraREIT with and into Merger Sub, with Merger Sub being the surviving entity, (b) a
contribution by such surviving entity of a 1% limited partnership interest in InfraREIT Partners to an affiliate of the Company, and (c) immediately following the consummation of such merger and contribution, a merger of Merger Partnership with
and into InfraREIT Partners, with InfraREIT Partners being the surviving entity. 
 “InfraREIT Partners” means InfraREIT
Partners, LP, a Delaware limited partnership and Subsidiary of InfraREIT and after the Merger Closing Date, Oncor NTU Partnership, LP, a Delaware limited partnership. 

“Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or
more of its affiliates) more than 5% of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any
insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note. 

“IRS” means the Internal Revenue Service. 

“Lien” means any mortgage, deed of trust, pledge, security interest, encumbrance, easement, lease, reservation, restriction,
servitude, charge or similar right and any other lien of any kind, including, without limitation, any conditional sale or other title retention agreement, any lease in the nature thereof, and any defect, irregularity, exception or limitation in
record title. 
 “LLC Agreement” means the Third Amended and Restated Limited Liability Company Agreement of the Company,
dated as of March 9, 2018. 
 “Make-Whole Amount” is defined in
Section 9.7. 
 “Material” means material in relation to the business,
operations, affairs, financial condition, assets, properties, or prospects of the Company and its Subsidiaries taken as a whole. 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition,
assets or properties of the Company and its Subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement and the Notes, or (c) the validity or enforceability of this Agreement or the Notes.

 “Material Credit Facility” means a debt facility or indenture with banks or other institutional lenders providing for
revolving credit loans, term loans, notes issuances or letters of credit, in each case with a principal amount not less than $350,000,000. 

“Maturity Date” is defined in the first paragraph of each Note. 

“Merger Agreement” means the Agreement and Plan of Merger dated as of October 18, 2018, by and among the Company, Merger
Sub, Merger Partnership, InfraREIT, and InfraREIT Partners, as may be amended from time to time in accordance with its terms. 

“Merger Closing Date” means the Closing Date as defined in the Merger Agreement. 

  
 Schedule A-9 

 “Merger Partnership” means Oncor T&D Partners, LP, a Delaware limited
partnership and a wholly-owned indirect Subsidiary of the Company. 
 “Merger Sub” means 1912 Merger Sub LLC, a Delaware
limited liability company and a wholly-owned Subsidiary of the Company and after the Merger Closing Date, Oncor NTU Holdings Company LLC, a Delaware limited liability company. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Mortgaged Property” has the meaning given to it in the Deed of Trust. 

“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in
section 4001(a)(3) of ERISA). 
 “NAIC” means the National Association of Insurance Commissioners or any successor
thereto. 
 “Net Proceeds Amount” means, with respect to any Transfer of any property by any Person, an amount equal
to the difference of 
 (a) the aggregate amount of the consideration (if not cash, valued at the Fair Market Value of
such consideration at the time of the consummation of such Transfer) allocated to such Person in respect of such Transfer, net of any applicable taxes incurred in connection with such Transfer, minus 

(b) all ordinary and reasonable out-of-pocket
costs and expenses actually incurred by such Person in connection with such Transfer. 
 “Net Tangible Assets” means the
amount shown as total assets on the Company’s unconsolidated balance sheet, less (a) intangible assets including, but without limitation, such items as goodwill, trademarks, trade names, patents, unamortized debt discount and expense and
other regulatory assets carried as assets on the Company’s unconsolidated balance sheet, and (b) appropriate adjustments, if any, on account of minority interests. Net Tangible Assets shall be determined in accordance with generally
accepted accounting principles and practices applicable to the type of business in which the Company is engaged. 
 “Non-U.S. Plan” means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by the Company or any Subsidiary primarily for the benefit of
employees of the Company or one or more Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments
to be made upon termination of employment, and (b) is not subject to ERISA or the Code. 

“Non-U.S. Purchaser” means a Purchaser (or holder of a Note) that is not a
“United States person” (as defined in Section 7701(a)(30) of the Code). 
 “Note Documents” means
this Agreement, the Notes, the Security Documents, all documents evidencing or securing the Obligations and all documents, instruments and agreements executed by the Company from time to time in connection with any of the foregoing, together with
any amendment, waiver, supplement or other modification to any of the foregoing. 

  
 Schedule A-10 

 “Notes” is defined in
Section 1. 
 “NPAs” means (a) this Agreement and (b) each other
note purchase agreement between the Company and the holder of Prior Notes, providing for the exchange of such Prior Notes to the extent set forth therein. 

“Obligation” any principal, Make-Whole Amount, if any, interest, penalties, fees, charges, expenses, indemnifications,
reimbursement obligations, damages, guarantees, and other liabilities or amounts payable pursuant to the terms of this Agreement, any Note or any of the Note Documents owed by the Company to the Collateral Agent or to the holders of the Notes. 

“OFAC” means the Office of Foreign Assets Control of the U.S. Department of the Treasury. 

“Officer’s Certificate” means a certificate signed by an Authorized Officer of the Company and delivered to the
Purchasers. 
 “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company, and who shall
be acceptable to the Required Holders. 
 “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to
any or all of its functions under ERISA. 
 “Permit” means any action, approval, consent, waiver, exemption, variance,
franchise, order, permit, authorization, right or license of or from a Governmental Authority, provided that interests or estates in real property shall not be considered Permits. 

“Permitted Holders” means any of (i) Sempra Energy or any of its Affiliates, (ii) Texas Transmission or any of its
Affiliates or (iii) any member of, or other investor in, Texas Transmission or any of its Affiliates, or any investment fund or vehicle managed, sponsored or advised by any such member or investor, and any Affiliate of or successor to any such
investment fund or vehicle. 
 “Permitted Lien” has the meaning given to it in the Deed of Trust. 

“Permitted Secured Debt” means, as of any particular time, any of the following: 

(a) the securities issued under the Indentures and the NPAs at or prior to the Closing; 

(b) Secured Debt which matures less than one year from the date of the issuance or incurrence thereof and is not extendible at
the option of the issuer; and any refundings, refinancings and/or replacements of any such Secured Debt by or with similar Secured Debt which matures less than one year from the date of such refunding, refinancing and/or replacement and is not
extendible at the option of the issuer; 

  
 Schedule A-11 

 (c) Secured Debt secured by Purchase Money Liens or any other Liens existing
or placed upon property at the time of, or within one hundred eighty (180) days after, the acquisition thereof by the Company, and any refundings, refinancings and/or replacements of any such Secured Debt; provided, however, that no such
Purchase Money Lien or other Lien shall extend to or cover any property of the Company other than (x) the property so acquired and improvements, extensions and additions to such property and renewals, replacements and substitutions of or for
such property or any part or parts thereof and (y) with respect to Purchase Money Liens, other property subsequently acquired by the Company; 

(d) Secured Debt relating to governmental obligations the interest on which is not included in gross income for purpose of
federal income taxation pursuant to Section 103 of the Code, for the purpose of financing or refinancing, in whole or in part, costs of acquisition or construction of property to be used by the Company, to the extent that the Lien which secures
such Secured Debt is required either by applicable law or by the issuer of such governmental obligations or is otherwise necessary in order to establish or maintain such exclusion from gross income; and any refundings, refinancings and/or
replacements of any such Secured Debt by or with similar Secured Debt; 
 (e) Secured Debt (x) which is related to the
construction or acquisition of property not previously owned by the Company or (y) which is related to the financing of a project involving the development or expansion of property of the Company and (z) in either case, the obligee in
respect of which has no recourse to the Company or any property of the Company other than the property constructed or acquired with the proceeds of such transaction or the project financed with the proceeds of such transaction (or the proceeds of
such property or such project); and any refundings, refinancings and/or replacements of any Secured Debt by or with Secured Debt described in clause (z) above; and 

(f) in addition to the Permitted Secured Debt described in clauses (a) through (e) above,
Secured Debt not otherwise so permitted under this definition in an aggregate principal amount not exceeding the greater of 10% of the Company’s Net Tangible Assets or 10% of Capitalization, as shown on the Company’s balance sheet most
recently delivered pursuant to Section 8.8(a) or Section 8.8(b). 

“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated
organization, business entity or Governmental Authority. 
 “Plan” means an “employee benefit plan”
(as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or
required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability. 

“Prior Notes” means (a) the Exchanged Notes, (b) the 7.25% Senior Notes due December 30, 2029 issued by SDTS,
(c) the 6.47% Senior Notes due September 30, 2030 issued by SDTS, and (d) the 8.5% Senior Notes due December 30, 2020 issued by TDC. 

  
 Schedule A-12 

 “Priority Debt” means the sum of all Debt of Subsidiaries (excluding Debt
of any Subsidiary owing to the Company or any other Subsidiary). 
 “property” or “properties” means,
unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate. 

“Property Reinvestment Application” means, with respect to any Transfer of property constituting an Asset Disposition, the
application of all or any portion of the Net Proceeds Amount with respect to such Transfer to the acquisition by the Company or any of its Subsidiaries of assets to be used in the principal business of the Company or any of its subsidiaries. For
avoidance of doubt, to the extent consideration received by the Company or any of its Subsidiaries in an Asset Disposition is not cash, the Net Proceeds Amount in respect of such consideration received shall be considered a Property Reinvestment
Application. 
 “PUCT” means the Public Utility Commission of Texas. 

“Purchase Money Lien” means, with respect to any property being acquired by the Company, a Lien on such property which 

(a) is taken or retained by the transferor of such property to secure all or part of the purchase price thereof; 

(b) is granted to one or more Persons other than the transferor which, by making advances or incurring an obligation, give
value to enable the grantor of such Lien to acquire rights in or the use of such property; 
 (c) is held by a trustee or
agent for the benefit of one or more Persons described in clause (a) and/or (b) above, provided that such Lien may be held, in addition, for the benefit of one or more other Persons which shall have theretofore
given, or may thereafter give, value to or for the benefit or account of the grantor of such Lien for one or more other purposes; or 

(d) otherwise constitutes a purchase money mortgage or a purchase money security interest under applicable law; 

and, without limiting the generality of the foregoing, for purposes of this Agreement, the term Purchase Money Lien shall be deemed to include any Lien
described above whether or not such Lien (x) shall permit the issuance or other incurrence of additional indebtedness secured by such Lien on such property, (y) shall permit the subjection to such Lien of additional property and the
issuance or other incurrence of additional indebtedness on the basis thereof and/or (z) shall have been granted prior to the acquisition of such property, shall attach to or otherwise cover property other than the property being acquired and/or
shall secure obligations issued prior and/or subsequent to the issuance of the obligations delivered in connection with such acquisition. 

“Purchaser” or “Purchasers” means each of the purchasers that has executed and delivered this Agreement to
the Company and such Purchaser’s successors and assigns (so long as any such assignment complies with Section 12.2), provided, however, that any Purchaser of a Note that ceases to be the
registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to Section 12.2 shall cease to be included within the meaning of
“Purchaser” of such Note for the purposes of this Agreement upon such transfer. 

  
 Schedule A-13 

 “Push Out Election” is defined in
Section 8.10. 
 “Reinvestment Yield” is defined in
Section 9.7. 
 “Related Fund” means, with respect to any holder of any
Note, any fund or entity that (i) invests in Securities or bank loans, and (ii) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor. 

“Remaining Average Life” is defined in Section 9.7. 

“Remaining Scheduled Payments” is defined in Section 9.7. 

“Required Holders” means at any time the holders of more than 50% in principal amount of the Notes at the time outstanding
(exclusive of Notes then owned by the Company or any of its Affiliates). 
 “Required Permit” means all governmental and
third party Permits, patents, copyright, proprietary software, service marks, trademarks and trade names, or rights thereto, that are material to the ownership, leasing, operating and maintenance of the Electric Utility Property. 

“Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the
administration of the relevant portion of this Agreement. 
 “S&P” means Standard & Poor’s Ratings
Services (a division of The McGraw-Hill Companies, Inc.). 
 “Sanctions” means all economic or financial sanctions or trade
embargoes imposed, administered or enforced from time to time by OFAC or the U.S. Department of State. 
 “Sanctions Event”
means (a) the Company or any Controlled Entity becomes (including by virtue of being owned or controlled by a Blocked Person) a Blocked Person or (b) the Company directly or indirectly has any investment in or engages in any dealing or
transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder of Notes or any affiliate of such holder to be in violation
of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws. 

“SDTS” means Sharyland Distribution & Transmission Services, L.L.C., a Texas limited liability company and after the
Merger Closing Date, Oncor Electric Delivery Company NTU LLC, a Delaware limited liability company. 
 “Secured Debt” means
Debt created, issued, incurred or assumed by the Company which is secured by a Lien upon any property (other than Excepted Property) of the Company, real, personal or mixed, of whatever kind or nature and wherever located. Any Capitalized Lease
Liabilities of the Company will be deemed to be Debt secured by a Lien on the Company’s property. 

  
 Schedule A-14 

 “Secured Parties” means the Collateral Agent, the holders of the Notes and
the other Secured Parties (as defined in the Collateral Agency Agreement) from time to time. 
 “Securities” or
“Security” shall have the meaning specified in section 2(1) of the Securities Act. 
 “Securities Act”
means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 

“Security Documents” means the Deed of Trust and any other security documents, financing statements and the like filed or
recorded in connection with the foregoing. 
 “Sempra Energy” means Sempra Energy, a California corporation. 

“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the
Company. 
 “series” means any series of Notes issued pursuant to this Agreement. 

“Settlement Date” is defined in Section 9.7. 

“Significant Subsidiary” means at any time, any Subsidiary of the Company that as of such time has total assets in excess of
10% of the total assets of the Company and its consolidated Subsidiaries. 
 “State Sanctions List” means a list that is
adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S.
Economic Sanctions Laws. 
 “SU” means Sharyland Utilities, L.P., a Texas limited partnership. 

“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such
first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions)
of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries
(unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a
“Subsidiary” is a reference to a Subsidiary of the Company. 
 “Substitute Purchaser” is defined in
Section 20. 

  
 Schedule A-15 

 “Successor Company” is defined in
Section 8.5(a)(1). 
 “SVO” means the Securities Valuation Office of the
NAIC or any successor to such Office. 
 “TDC” means Transmission and Distribution Company, L.L.C., a Texas limited
liability company and after the Merger Closing Date, Oncor NTU Intermediate Company LLC, a Delaware limited liability company. 

“Texas Transmission” means Texas Transmission Investment LLC. 

“Total Debt” means, with respect to the Company, all Debt of the Company on a consolidated basis. 

“Total Debt to Capitalization Ratio” means (a) the Company’s Total Debt, divided    by
(b) the sum of (i) Total Debt plus (ii) Capitalization. 
 “Transfer” means, with respect to any
Person, any transaction (including by merger, consolidation or disposition of all or substantially all the assets of such Person) in which such Person sells, conveys, transfers or leases (as lessor) any of its property, including, without
limitation, Subsidiary Stock. “Transfer” shall also include the creation of minority interests in connection with any merger or consolidation involving a Subsidiary if the resulting entity is owned, directly or indirectly, by the
Company in the proportion less than the proportion of ownership of such Subsidiary by the Company immediately preceding such merger or consolidation. 

“UCC” means, with respect to any jurisdiction, the Uniform Commercial Code as in effect in such jurisdiction. 

“U.S. Economic Sanctions Laws” means those laws, executive orders, enabling legislation or regulations administered and
enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran
Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program. 
 “Voting Shares” means,
as to shares or other equity interests of a particular corporation or other type of Person, outstanding shares of stock or other equity interests of any class of such corporation or other Person entitled to vote in the election of directors or other
comparable managers of such Person, excluding shares or other interests entitled so to vote only upon the happening of some contingency. 

  
 Schedule A-16Exhibit

Exhibit 10.1
THE MACERICH COMPANY  
[    ] LTIP UNIT AWARD AGREEMENT  
(PERFORMANCE-BASED)
[    ] LTIP UNIT AWARD AGREEMENT (Performance-Based) made as of the date set forth on Schedule A hereto between The Macerich Company, a Maryland corporation (the “Company”), its subsidiary The Macerich Partnership, L.P., a Delaware limited partnership and the entity through which the Company conducts substantially all of its operations (the “Partnership”), and the party listed on Schedule A (the “Grantee”).
RECITALS
A.    The Grantee is a key employee of the Company or one of its Subsidiaries or affiliates and provides services to the Partnership.
B.    Pursuant to its Long-Term Incentive Plan (“LTIP”) the Company can award units of limited partnership interest of the Partnership designated as “LTIP Units” in the Partnership Agreement (as defined herein) under The Macerich Company 2003 Equity Incentive Plan, as amended (the “2003 Plan”), to provide certain key employees of the Company or its Subsidiaries and affiliates, including the Grantee, in connection with their employment with the long-term incentive compensation described in this Award Agreement (this “Agreement” or “Award Agreement”), and thereby provide additional incentive for them to promote the progress and success of the business of the Company and its Subsidiaries and affiliates, including the Partnership, while increasing the total return to the Company’s stockholders.  [    ] LTIP Units (PB) (as defined herein) have been awarded by the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) pursuant to authority delegated to it by the Board as set forth in the Committee’s charter, including authority to make grants of equity interests in the Partnership which may, under certain circumstances, become exchangeable for shares of the Company’s Common Stock reserved for issuance under the 2003 Plan, or any successor equity plan (as any such plan may be amended, modified or supplemented from time to time, collectively the “Stock Plan”).  This Agreement evidences an award to the Grantee under the LTIP (this “Award”), which is subject to the terms and conditions set forth herein.  
C.    The Grantee was selected by the Committee to receive this Award as one of a select group of highly compensated or management employees who, through the effective execution of their assigned duties and responsibilities, are in a position to have a direct and measurable impact on the Company’s long-term financial results.  Effective as of the grant date specified in Schedule A hereto, the Committee awarded to the Grantee the number of [    ] LTIP Units (PB) (as defined herein) set forth in Schedule A.
NOW, THEREFORE, the Company, the Partnership and the Grantee agree as follows:  
1.    Administration.  The LTIP and all awards thereunder, including this Award, shall be administered by the Committee, which in the administration of the LTIP shall have all the powers 

W/3356718

and authority it has in the administration of the Stock Plan, as set forth in the Stock Plan.  The Committee may from time to time adopt any rules or procedures it deems necessary or desirable for the proper and efficient administration of the LTIP, consistent with the terms hereof and of the Stock Plan.  The Committee’s determinations and interpretations with respect to the LTIP and this Agreement shall be final and binding on all parties.
2.    Definitions.  Capitalized terms used herein without definitions shall have the meanings given to those terms in the Stock Plan.  In addition, as used herein:
“[    ] LTIP Units (PB)” has the meaning set forth in Section 3(a).
“Cause” for termination of the Grantee’s employment means that the Company, acting in good faith based upon the information then known to the Company, determines that the Grantee has:
(a)    failed to perform in a material respect without proper cause his obligations under the Grantee’s Service Agreement (if one exists);
(b)    been convicted of or pled guilty or nolo contendere to a felony; or
(c)    committed an act of fraud, dishonesty or gross misconduct which is materially injurious to the Company.
Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Applicable Board (as defined below) or upon the instructions of the Chief Executive Officer of the Company or based upon the advice of counsel or independent accountants for the Company shall be conclusively presumed for purposes of this Agreement to be done, or omitted to be done, by the Grantee in good faith and in the best interests of the Company.  The cessation of employment of the Grantee shall not be deemed to be for Cause under clause (a) or (c) above unless and until there shall have been delivered to the Grantee a copy of a resolution duly adopted by the affirmative vote of at least a majority of the entire membership of the Applicable Board (excluding the Grantee and any relative of the Grantee, if the Grantee or such relative is a member of the Applicable Board) at a meeting of the Applicable Board called and held for such purpose (after reasonable notice is provided to the Grantee and the Grantee is given an opportunity, together with counsel for the Grantee, to be heard before the Applicable Board), finding that, in the good faith opinion of the Applicable Board, the Grantee is guilty of the conduct described in clause (a) or (c) above, and specifying the particulars thereof in reasonable detail.  For purposes of the definition of Cause, “Applicable Board” means the Board or, if the Company is not the ultimate parent corporation of the Company and its affiliates and is not publicly-traded, the board of directors of the ultimate parent of the Company.
“Change in Control Arrangement” means [The Macerich Company Change in Control Severance Pay Plan For the CEO, President and Senior Executive Vice Presidents][The Macerich Company Change in Control Severance Pay Plan for Executive Vice Presidents], as may be amended or modified from time to time.

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“Change of Control” means any of the following:
(a)    The acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 33% or more of either (A) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this definition, the following acquisitions shall not constitute a Change of Control:  (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any affiliate of the Company or successor or (iv) any acquisition by any entity pursuant to a transaction that complies with (c)(i), (c)(ii) and (c)(iii) below;
(b)    Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board (including for these purposes, the new members whose election or nomination was so approved, without counting the member and his predecessor twice) shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;
(c)    Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (i) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets directly or through one or more subsidiaries (“Parent”)) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding any entity resulting from such Business Combination or a Parent or any employee benefit plan (or related trust) of the Company or such entity resulting from such Business Combination or Parent) beneficially owns, directly or indirectly, 20% or more of, respectively, the then-outstanding shares of common stock of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such entity, except to the extent that the ownership 

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in excess of 20% existed prior to the Business Combination, and (iii) at least a majority of the members of the board of directors or trustees of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or 
(d)    Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.
“Code” means the Internal Revenue Code of 1986, as amended.
“Common Stock” means shares of the Company’s common stock, par value $0.01 per share, either currently existing or authorized hereafter.
“Competitive Activities” means that the Grantee, directly or indirectly, whether as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engages, participates, assists or invests in any Competing Business (as hereinafter defined).  The term “Competing Business” shall mean a publicly-traded real estate investment trust that is identified by the National Association of Real Estate Investment Trusts as a “mall REIT” or “shopping center REIT” (other than the Company or a surviving or resulting entity upon a Change of Control, or any of their respective affiliates).  Notwithstanding the foregoing, the Grantee may own equity securities of an entity which constitutes, or is affiliated with, a Competing Business, so long at their value does not exceed two percent (2%) of the aggregate equity market capitalization of the Competing Business.
“Continuous Service” means the continuous service to the Company or any Subsidiary or affiliate, without interruption or termination, in any capacity of employee, or, with the written consent of the Committee, consultant.  Continuous Service shall not be considered interrupted in the case of (A) any approved leave of absence, (B) transfers among the Company and any Subsidiary or affiliate, or any successor, in any capacity of employee, or with the written consent of the Committee, consultant, or (C) any change in status as long as the individual remains in the service of the Company and any Subsidiary or affiliate in any capacity of employee, member of the Board or (if the Company specifically agrees in writing that the Continuous Service is not uninterrupted) a consultant.  An approved leave of absence shall include sick leave, military leave, or any other authorized personal leave.
“Current Distributions” has the meaning set forth in Section 7(b).
“Contingent Distributions” has the meaning set forth in Section 7(c).
“Disability” means (A) a “permanent and total disability” within the meaning of Section 22(e)(3) of the Code, or (B) the absence of the Grantee from his duties with the Company on a full-time basis for a period of nine months as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Grantee or his legal representative (such agreements as to acceptability not to be unreasonably withheld).  “Incapacity” as used herein shall be limited only to a condition that substantially prevents the Grantee from performing his or her duties.

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“Effective Date” means January 1, [    ].
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Fair Market Value” means, as of any given date, the fair market value of a security determined by the Committee using any reasonable method and in good faith (such determination will be made in a manner that satisfies Section 409A of the Code and in good-faith as required by Section 422(c)(1) of the Code); provided that (A) if the security is then listed on a national stock exchange, the fair market value of such security on any date shall be the closing sales price per Share on the principal national stock exchange on which the security is listed on such date (or, if such date is not a trading date on which there was a sale of such security on such exchange, the last preceding date on which there was a sale of such security on such exchange), (B) if the security is not then listed on a national stock exchange but is then traded on an over-the-counter market, the fair market value of such security on any date shall be the average of the closing bid and asked prices for such security in the principal over-the-counter market on which such security is traded on such date (or, if such date is not a trading date on which there was a sale of such security on such market, for the last preceding date on which there was a sale of such security in such market), or (C) if the security is not then listed on a national stock exchange or traded on an over-the-counter market, the fair market value of such security on any date shall be such value as the Committee in its discretion may in good faith determine; provided that, where Shares are so listed or traded, the Committee may make such discretionary determinations where Shares have not been traded for 10 trading days.
“Good Reason” means an action taken by the Company, without the Grantee’s written consent thereto, resulting in a material negative change in the employment relationship, to the extent not remedied by the Company within 30 days after receipt by the Company of written notice from the Grantee provided to the Company within 90 days (the “Cure Period”) of the Grantee’s knowledge of the occurrence of such material negative change in the employment relationship specifying in reasonable detail such occurrence.  For these purposes, a “material negative change in the employment relationship” shall include, without limitation, any one or more of the following reasons, set forth in clauses (a) through (e) below:
(a)    the assignment to the Grantee of any duties materially inconsistent in any respect with the Grantee’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities, or any other material diminution in such position, authority, duties or responsibilities (whether or not occurring solely as a result of the Company’s ceasing to be a publicly traded entity); 
(b)    a change in the Grantee’s principal office location to a location further away from the Grantee’s home which is more than 30 miles from the Grantee’s current principal office;
(c)    the taking of any action by the Company to eliminate benefit plans in which the Grantee participated in or was eligible to participate in immediately prior to a Change of Control without providing substitutes therefor, to materially reduce benefits thereunder or to substantially diminish the aggregate value of the incentive awards or other fringe benefits; provided that if neither a surviving entity nor its parent following a Change of Control is a publicly-held company, the 

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failure to provide stock-based benefits shall not be deemed good reason if benefits of comparable value using recognized valuation methodology are substituted therefor; and provided further that a reduction or elimination in the aggregate of not more than 10% in aggregate benefits in connection with across the board reductions or modifications affecting similarly situated persons of executive rank in the Company or a combined organization shall not constitute Good Reason;
(d)    any one or more reductions in the Grantee’s Base Salary that, individually or in the aggregate, exceed 10% of the Grantee’s Base Salary; or 
(e)    any material breach by the Company of the Grantee’s Service Agreement (if one exists).
In the event that the Company fails to remedy the condition constituting Good Reason during the applicable Cure Period, the Grantee’s “separation from service” (within the meaning of Section 409A of the Code) must occur, if at all, within two years following the occurrence of such condition in order for such termination as a result of such condition to constitute a termination for Good Reason.  If the Grantee suffers a Disability or dies following the occurrence of such material negative change in the employment relationship and the Grantee has given the Company the requisite written notice but the Company has failed to remedy the situation prior to such physical or mental incapacity or death, the Grantee’s physical or mental incapacity or death shall not affect the ability of the Grantee or his heirs or beneficiaries, as applicable, to treat the Grantee’s termination of employment as a termination for Good Reason, Retirement, death or Disability.  For purposes of the definition of Good Reason, the term “Base Salary” means the annual base rate of compensation payable to Grantee by the Company prior to any reduction thereof, before deductions or voluntary deferrals authorized by the Grantee or required by law to be withheld from the Grantee by the Company.  Salary excludes all other extra pay such as overtime, pensions, severance payments, bonuses, equity-based incentives, living or other allowances, and other perquisites.
“LTIP Units” means units of limited partnership interest of the Partnership designated as “LTIP Units” in the Partnership Agreement awarded pursuant to this Agreement under the LTIP having the rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption set forth in the Partnership Agreement.  
“Partial Service Factor” means a factor carried out to the sixth decimal, but never greater than one (1.000000), determined by dividing (A) the number of calendar days that have elapsed since the Effective Date to and including the date of the Grantee’s Retirement, death or Disability (as applicable) by (B) 365.
 “Partnership Agreement” means the Amended and Restated Limited Partnership Agreement of the Partnership, dated as of March 16, 1994, among the Company, as general partner, and the limited partners who are parties thereto, as amended from time to time.
“Peer REIT” means each of the business entities qualified as real estate investment trusts (“REITs”) that are publicly-traded, U.S.-based “equity REITs” and are categorized in the National Association of Real Estate Investment Trusts (“NAREIT”) Index as “Mall” or “Shopping Center” REITs; provided that such business entities must be publicly-traded for the entire Performance 

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Period to constitute a Peer REIT; provided further that if any business entity is delisted due to bankruptcy during the Performance Period it will remain a Peer REIT (such delisted business entities, “Delisted Peer REITs”).  If the Committee determines that NAREIT no longer identifies Peer REITs, or that NAREIT’s identification of Peer REITs is no longer suitable for the purposes of this Agreement, then the Committee in its good faith reasonable discretion shall select Peer REITs identified by another reputable business organization for purposes of this Agreement. The Committee does not have the discretion to adjust the Peer REIT Total Return for matters other than as described above.
“Peer REIT Total Return” means, (a) for a Peer REIT other than a Delisted Peer REIT, with respect to the Performance Period, the absolute total stockholder return of the common equity of such Peer REIT during the Performance Period, calculated in the same manner as Total Return is calculated for the Company and (b) for a Delisted Peer REIT, an absolute total stockholder return of -100%.
[“Performance Period” means, the period commencing on (and including) January 1, [    ] and concluding on (and including) the earliest of (a) December 31, [   ] or (b) the date of a Change of Control.] or [“Performance Period” means, the period commencing on (and including) January 1, [    ] and concluding on (and including) December 31, [    ].] 
“Person” means an individual, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization, other entity or “group” (as defined in the Exchange Act).
“Qualified Termination” means a termination of the Grantee’s employment (A) by the Company for no reason or for any reason (other than for Cause, death or Disability), or (B) by the Grantee for Good Reason.
“Qualified Termination Factor” means a factor carried out to the six decimal, but never greater than one (1.000000), determined by dividing (A) the number of days between the Effective Date and the date on which the Grantee’s Qualified Termination occurs divided by (B) 1,095.
“Retirement” means:  (A) if the Grantee is a party to a Service Agreement immediately prior to such event, and “Retirement” is defined therein, then “Retirement” shall have the meaning set forth in such Service Agreement, or (B) if the Grantee is not party to a Service Agreement immediately prior to such event and/or the Grantee’s Service Agreement does not define “Retirement,” then “Retirement” shall mean the Grantee’s voluntary termination of employment with the Company and its Subsidiaries on or after the attainment of age 55 and completion of ten (10) years of employment with the Company and/or a Subsidiary, provided that following Retirement the Grantee does not engage in Competitive Activities during the balance of the Performance Period.
“Service Agreement” means, as of a particular date, any employment, consulting or similar service agreement, including, without limitation, management continuity agreement, then in effect between the Grantee, on the one hand, and the Company or one of its affiliates, on the other hand, as amended or supplemented through such date.

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“Share” means a share of Common Stock, subject to adjustments pursuant to Section 6.2 of the Stock Plan.
“Share Price” means, as of a particular date, the Fair Market Value of one Share on such date (or, if such date is not a trading day, the most recent trading day immediately preceding such date); provided further, however, that if such date is the date upon which a Transactional Sale Event occurs, the Share Price as of such date shall be equal to the fair market value in cash, as determined by the Committee, of the total consideration paid or payable in the transaction resulting in the Transactional Sale Event for one Share.
“Total Return” means, with respect to the Performance Period, the compounded total annual return that would have been realized by a stockholder who (A) bought one Share on the first day of the Performance Period at the Share Price on the date immediately preceding such day, (B) reinvested each dividend and other distribution declared during such period of time with respect to such Share (and any other Shares previously received upon reinvestment of dividends or other distributions) in additional Shares at the Fair Market Value on the applicable dividend payment date, and (C) sold all the Shares described in clauses (A) and (B) on the last day of the Performance Period at the Share Price on such date.  As set forth in, and pursuant to, Section 9 hereof, appropriate adjustments to the Total Return shall be made to take into account all stock dividends, stock splits, reverse stock splits and the other events set forth in Section 9 hereof that occur during the Performance Period.  In calculating Total Return, it is the current intention of the Committee to use total return to stockholders data for the Company and the Peer REITs available from one or more third party sources, though the Committee reserves the right in its reasonable discretion to retain the services of a consultant to analyze relevant data or perform necessary calculations for purposes of this Award.  If the Committee delegates the calculation of Total Return to a valuation or other expert, including matters such as the determination of dividend reinvestment and the inclusion or exclusion of REITs as Peer REITs, the Committee is entitled to rely on such valuation or other expert.
“Transactional Sale Event” means (A) a Change of Control described in clause (a) of the definition thereof as a result of a tender offer for Shares or (B) a Change of Control described in clause (c) of the definition thereof.
“Units” means Partnership Units (as defined in the Partnership Agreement) that are outstanding or are issuable upon the conversion, exercise, exchange or redemption of any securities of any kind convertible, exercisable, exchangeable or redeemable for Partnership Units.  
3.    Award of [    ] LTIP Units (PB).
(a)    On the terms and conditions set forth in this Agreement, as well as the terms and conditions of the Stock Plan, the Grantee is hereby granted this Award consisting of the number of LTIP Units set forth on Schedule A hereto opposite “[    ] LTIP Units (PB)”, which is incorporated herein by reference (the “[    ] LTIP Units (PB)”).
(b)    [    ] LTIP Units (PB) shall constitute and be treated as the property of the Grantee as of the applicable grant date, subject to the terms of this Agreement and the Partnership 

8

Agreement.  Every grant of [    ] LTIP Units (PB) to the Grantee pursuant to this Award shall be set forth in minutes of the meetings of the Committee.  [    ] LTIP Units (PB) will be:  (A) subject to vesting and/or forfeiture to the extent provided in Sections 4 and 5 hereof; and (B) subject to restrictions on transfer as provided in Section 8 hereof.
4.    Vesting of [    ] LTIP Units (PB).
(a)    Except as otherwise set forth in this Section 4 and Section 5 below, the percentage of the Grantee’s [    ] LTIP Units (PB) that will become vested at the end of the Performance Period [(or at such other date as provided in Section 5 hereof)] will be based on the percentile rank of the Company’s Total Return relative to the Peer REIT Total Return for the Peer REITs for the Performance Period as set forth below.  
	
		
	Percentile Rank
	Percentage of Award Vested

	At or above the 75th percentile
	100% of the [    ] LTIP Units (PB)

	At the 50th percentile
	66-2/3% of the [    ] LTIP Units (PB)

	At the 25th percentile
	33-1/3% of the [    ] LTIP Units (PB)

	Below the 25th percentile
	0% of the [    ] LTIP Units (PB)

The percentile rank above shall be calculated using the following conventions:  
Percentile Rank =    X 
Y
Where:
		
	X =
	the number of Peer REITs with a Peer REIT Total Return lower than the Company’s Total Return during the Performance Period.

Y =    the total number of Peer REITs minus 1.
If Percentile Rank as calculated above is a not a whole number, then the award vesting shall be calculated as if the calculation resulted in a percentile rank equal to the next higher whole integer. 
If the percentile rank falls between the 25th and 75th percentiles, the percentage of the Grantee’s [    ] LTIP Units (PB) that become vested will be calculated using linear interpolation, such that for every additional percentile of rank between the 25th and 75th percentiles an additional 1.33334% of the [    ] LTIP Units (PB) will be vested.  For example:  at the 34th percentile rank 45.334% of the [    ] LTIP Units (PB) will be vested {33.334% + [(9/25) x (33.334%)] = 45.334%}.
Subject to Section 5 hereof, vesting of the Grantee’s [    ] LTIP Units (PB) shall occur as of the last day of the Performance Period, provided that the Continuous Service of the Grantee continues through the last day of the Performance Period, regardless of when the Committee completes its 

9

determination of percentile rank or any other calculations or assessments related to its determination of the vesting percentage.  
For the avoidance of doubt, assuming no Change of Control (i.e., the last day of the Performance period is December 31, [   ]), the intent of this Section 4(a) is that (i) the Company’s Total Return will be calculated using as the first input the Share Price on December 31, [    ] and as the last input the Share Price on December 31, [    ], and (ii) each Peer REIT’s Total Return will be calculated in the same manner with respect to the common equity of each such Peer REIT.  
(b)    The Committee may, upon consideration of the statistical data for the Peer REITs relative to Peer REIT Total Return for the Performance Period, exercise its reasonable discretion to allow for vesting of [    ] LTIP Units (PB) under Section 4(a) on a basis other than a strict mathematical calculation of percentile rank to the extent appropriate in light of the circumstances.  By way of illustration, the foregoing would allow the Committee to provide for vesting to occur at a particular level if the Peer REIT Total Return of a number of Peer REITs is clustered within a narrow range such that the effect of the precise calculation of percentile rank would be that vesting would not occur or occur at a lower level.  The Committee does not have the discretion to adjust downward the vesting of [    ] LTIP Units (PB).
(c)    The Grantee agrees to provide Continuous Service to the Company in consideration for the conditional rights to the unvested [    ] LTIP Units (PB).  Except as otherwise provided in Section 5 or pursuant to the Stock Pan, the vesting of the [    ] LTIP Units (PB) requires Continuous Service through the last day of the Performance Period as a condition to the vesting of the [    ] LTIP Units (PB).  Partial service, even if substantial, during any vesting period will not entitle the Grantee to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment or service except as provided in Section 5 below or under the Stock Plan.
(d)    Any [    ] LTIP Units (PB) that do not become vested pursuant to this Section 4 or Section 5 below shall, without payment of any consideration by the Partnership, automatically and without notice terminate, be forfeited and be and become null and void as of the end of the Performance Period, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such unvested [    ] LTIP Units (PB).
5.    Change of Control or Termination of Grantee’s Service Relationship.
(a)    If the Grantee is a party to a Service Agreement, the provisions of this Section 5 shall govern the vesting of the Grantee’s [    ] LTIP Units (PB) exclusively in the event of a Change of Control or termination of the Grantee’s service relationship with the Company or any Subsidiary or affiliate, unless the Service Agreement contains provisions that expressly refer to this Section 5 and provides that those provisions of the Service Agreement shall instead govern the vesting of the Grantee’s [    ] LTIP Units (PB).  The foregoing sentence will be deemed an amendment to any applicable Service Agreement to the extent required to apply its terms consistently with this Section 5, such that, by way of illustration, any provisions of the Service Agreement with respect to accelerated vesting or payout of the Grantee’s bonus or incentive compensation awards in the 

10

event of certain types of terminations of Grantee’s service relationship (such as, for example, termination at the end of the term, termination without Cause by the employer or termination for Good Reason by the employee) shall not (unless the Service Agreement contains provisions that expressly refer to this Section 5 and provides that those provisions of the Service Agreement shall instead govern the vesting of the Grantee’s [    ] LTIP Units (PB)) be interpreted as requiring that any calculations set forth in Section 4 hereof be performed, or vesting occur with respect to this Award other than as specifically provided in this Section 5.  In the event an entity ceases to be a Subsidiary or affiliate of the Company, such action shall be deemed to be a termination of employment of all employees of that entity for purposes of this Agreement resulting in any then unvested [    ] LTIP Units (PB), without payment of any consideration by the Partnership, being automatically and without notice forfeited; provided that the Committee, in its sole and absolute discretion, may make provision in such circumstances for accelerated vesting of some or all of the Grantee’s remaining unvested [    ] LTIP Units (PB) that have not previously been forfeited effective immediately prior to such event.
(b)    [In the event of a Change of Control prior to December 31, [    ], then:
(i)    the Performance Period shall end on such date and the calculations provided in Section 4 hereof shall be performed effective as of the date of the Change of Control and following the date of the Change of Control no further calculations pursuant to Section 4 hereof shall be performed with respect to the Grantee; and
(ii)    if the [    ] LTIP Units (PB) remain outstanding after a Change of Control or equivalent replacement awards (as defined in Section 5(b)(iv) hereof) are substituted for the [    ] LTIP Units (PB) at the time of the Change of Control, then the number of [    ] LTIP Units (PB) that are determined as of the date of the Change of Control pursuant to the calculations provided in Section 4 shall remain subject to vesting tied to the Grantee’s Continuous Service until December 31, [    ] as if no Change of Control had occurred, except that the Grantee shall become fully vested in such [    ] LTIP Units (PB) immediately (A) upon the Grantee’s Qualified Termination in connection with or within twenty-four (24) months after the Change of Control, or (B) upon the Grantee’s death, Disability or Retirement; 
(iii)    if neither the [    ] LTIP Units (PB) remain outstanding after a Change of Control nor equivalent replacement awards (as defined in Section 5(b)(iv) hereof) are substituted for the [    ] LTIP Units (PB) at the time of the Change of Control, then the Grantee shall become fully vested in the number of [    ] LTIP Units (PB) that are determined pursuant to the calculations provided in Section 4 as of the date of the Change of Control; and 
(iv)    an award shall qualify as an “equivalent replacement award” if the following conditions are met in the good faith discretion of the Committee:  
(A)    the replacement award is of the same type as the [    ] LTIP Units (PB) being replaced, including, without limitation, income tax attributes 

11

relating to the extent and timing of recognition of taxable income, gain or loss by the Grantee; 
(B)    the replacement award has a value equal to the Fair Market Value of the [    ] LTIP Units being replaced as of the effective date of the Change of Control; 
(C)    the equity securities issuable upon the conversion, exercise, exchange or redemption of the replacement award, or securities underlying the replacement award, as applicable, are listed on a national stock exchange; 
(D)    the replacement award contains terms relating to vesting (including with respect to the Grantee’s Qualified Termination, death, Disability or Retirement) that are substantially identical to those of the [    ] LTIP Units (PB); and 
(E)    the other terms and conditions of the replacement award are not less favorable to the Grantee than the terms and conditions of the [    ] LTIP Units (PB).]
(i)    [if the [    ] LTIP Units (PB) remain outstanding after a Change of Control or equivalent replacement awards (as defined in Section 5(b)(iii) hereof) are substituted for the [    ] LTIP Units (PB) at the time of the Change of Control, then:
(A)    the calculations provided in Section 4 hereof shall be performed as of the end of the Performance Period as if the Change of Control had not occurred; and 
(B)    vesting tied to the Grantee’s Continuous Service will occur upon the earlier of (i) the end of the Performance Period or (ii) the date of the Grantee’s Qualified Termination, death, Disability or Retirement; provided, however, that the number of performance-vested [    ] LTIP Units (PB) shall not be determined until the end of the Performance Period as provided in Section 4;  
(ii)    if neither the [    ] LTIP Units (PB) remain outstanding after a Change of Control nor equivalent replacement awards are substituted for [    ] LTIP Units (PB) at the time of the Change of Control, then:
(A)    the calculations provided in Section 4 hereof shall be performed effective as of the date of the Change of Control as if the Performance Period ended on such date; and 
(B)    the Grantee shall become fully vested in the number of [    ] LTIP Units (PB) that are determined pursuant to the 

12

calculations provided in Section 4 hereof as of the effective date of the Change of Control; and 
(iii)    an award qualifies as an “equivalent replacement award” if the following conditions are met in the good faith discretion of the Committee:  
(A)    the replacement award is of the same type as the [    ] LTIP Units (PB) being replaced, including, without limitation, income tax attributes relating to the extent and timing of recognition of taxable income, gain or loss by the Grantee; 
(B)    the equity securities issuable upon the conversion, exercise, exchange or redemption of the replacement award, or securities underlying the replacement award, as applicable, are listed on a national stock exchange; 
(C)    the replacement award contains terms relating to vesting (including with respect to a Qualified Termination) that are substantially identical to those of the [    ] LTIP Units (PB); 
(D)    with respect to the measurement of Total Return, the compounded total annual return that would have been realized by a stockholder who bought one Share on the first day of the Performance Period, reinvested all dividends and other distributions, and liquidated the entire investment on the last day of the Performance Period shall be measured assuming that such stockholder participated in the transaction constituting a Change of Control on the terms applicable to the majority of stockholders and had continued to hold the investment (whether in securities of the Company or the surviving or resulting entity after the Change of Control transaction or in other property received as part of the Change of Control transaction (which in the case of cash shall be deemed reinvested at market rates of return for investments with duration and risk appropriate under the circumstances)), with appropriate adjustments to take into account stock dividends, stock splits, reverse stock splits and the other events set forth in Section 9 that occur during the Performance Period both before, upon and after the effective date of the Change of Control transaction; and 
(E)    the other terms and conditions of the replacement award are not less favorable to the Grantee than the terms and conditions of the [    ] LTIP Units (PB).]
(c)    Except as otherwise provided in Section 5(b), in the event of the Grantee’s Qualified Termination, death or Disability or Retirement (as applicable below) prior to the end of 

13

the Performance Period, conditioned upon the execution and delivery by the Grantee of a customary release of claims and covenant not to solicit employees of the Company or its Subsidiaries or Affiliates following termination, the Grantee will not forfeit the [    ] LTIP Units (PB) upon such event, but the following provisions of this Section 5(c) shall modify the determination of vesting for the Grantee, subject, in each case, to the provisions of Sections 6.4 and 6.5 of the Stock Plan:
(i)    the calculations provided in Section 4 hereof shall be performed as of the end of the Performance Period as if such Qualified Termination, death, Disability or Retirement (as applicable below) had not occurred, and, following such calculations, the Grantee shall become vested in the number of [    ] LTIP Units (PB) determined in accordance with this Section 5(c); 
(ii)    if the Grantee experiences a Retirement, death or Disability, in each case, prior to the first anniversary of the Effective Date, the number of [    ] LTIP Units (PB) resulting from the calculations provided in Section 4 hereof shall be multiplied by the Partial Service Factor (with the resulting number being rounded to the nearest whole LTIP Unit), and such adjusted number of [    ] LTIP Units (PB) shall become vested and any other [    ] LTIP Units (PB) that are not included in the foregoing calculation shall be immediately forfeited);
(iii)    if the Grantee experiences a Retirement, death or Disability, in each case, on or after the first anniversary of the Effective Date, there will be no reduction in the number of [    ] LTIP Units (PB) resulting from the calculations provided in Section 4 hereof, and such unadjusted number of [    ] LTIP Units (PB) shall become vested; and
(iv)    if the Grantee experiences a Qualified Termination prior to the end of the Performance Period, the number of [    ] LTIP Units (PB) resulting from the calculations provided in Section 4 hereof shall be multiplied by the Qualified Termination Factor (with the resulting number being rounded to the nearest whole LTIP Unit), and such adjusted number of [    ] LTIP Units (PB) shall become vested and any other [    ] LTIP Units (PB) that are not included in the foregoing calculation shall be immediately forfeited).
(d)    If the Grantee becomes engaged in Competitive Activities at any time on or following the effective date of Retirement and before the end of the applicable Performance Period, then the provisions relating to vesting due to Retirement under  Section 5(b) or 5(c), as applicable, will not apply, and, upon the date the Grantee becomes engaged in any such Competitive Activities during such period, all [    ] LTIP Units (PB), except for those that, prior to such engagement in Competitive Activities, had previously been vested pursuant to Section 4 hereof during the Grantee’s Continuous Service or that otherwise became vested under this Section 5, shall automatically and immediately be forfeited by the Grantee.  Any forfeited [    ] LTIP Units (PB) shall, without payment of any consideration by the Partnership, automatically and without notice be and become null and void, and neither the Grantee nor any of his successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such forfeited [    ] LTIP Units (PB).
(e)    If the Grantee’s employment with the Company or a Subsidiary or affiliate terminates as a result of a retirement under circumstances that do not meet the definition of 

14

“Retirement” under this Agreement, the Committee may, on a case-by-case basis and in its sole discretion, provide for accelerated or continued vesting of some or all of the Grantee’s unvested [    ] LTIP Units (PB) that have not previously been forfeited effective prior to the effective date of retirement, but in any such event, the provisions of Section 5(d) will apply as if such retirement was deemed a “Retirement” for purposes of this Agreement, and any such vesting will be conditioned upon the execution and delivery by the Grantee of a customary release of claims and covenant not to solicit employees of the Company or its Subsidiaries or Affiliates following such termination.  
(f)    In the event of a termination of employment or other cessation of the Grantee’s Continuous Service prior to the end of the Performance Period, effective as of the date of such termination or cessation, all [    ] LTIP Units (PB) except for those that had previously vested pursuant to Section 4 hereof and those that otherwise become vested or will continue to vest pursuant to this Section 5 shall automatically and immediately be forfeited by the Grantee.  Any forfeited [    ] LTIP Units (PB) shall, without payment of any consideration by the Partnership, automatically and without notice be and become null and void, and neither the Grantee nor any of his successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such forfeited [    ] LTIP Units (PB).
.
6.    Payments by Award Recipients.  No amount shall be payable to the Company or the Partnership by the Grantee at any time in respect of this Award.
7.    Distributions.  Distributions on [    ] LTIP Units (PB) will be paid in accordance with the Partnership Agreement as modified hereby as follows:  
(a)    The LTIP Unit Distribution Participation Date (as defined in the Partnership Agreement) with respect to those [    ] LTIP Units (PB) that have become vested in accordance with Section 4 or 5 hereof shall be the effective date of vesting of [    ] LTIP Units (PB) (i.e. the last day of the Performance Period [or such other date as provided in Section 5(b)  hereof]).  Vested [    ] LTIP Units (PB) shall be entitled to receive the full distribution payable on Units outstanding as of the record date next following the date set forth in the preceding sentence, whether or not they will have been outstanding for the whole period in respect of which any such distribution is otherwise payable.  
(b)    Prior to the LTIP Unit Distribution Participation Date provided in Section 7(a) above, [    ] LTIP Units (PB) not otherwise forfeited in accordance with Section 4 or 5 hereof shall be entitled to receive 10% of regular periodic distributions payable to holders of Units (the “Current Distributions”) and 0% of special, extraordinary or other distributions made not in the ordinary course.
(c)    An amount equal to (i) the difference between (x) all distributions (regular, special, extraordinary or otherwise) paid with respect to one Unit between the date of grant of the [    ] LTIP Units (PB) and the LTIP Unit Distribution Participation Date provided in Section 7(a) and (y) the Current Distributions paid with respect to one [    ] LTIP Unit up to the LTIP Unit Distribution Participation Date provided in Section 7(a) (such difference, the “Contingent 

15

Distributions”) multiplied by (ii) the number of [    ] LTIP Units (PB) shall be credited to a notional (unfunded) account for the benefit of the Grantee on the books and records of the Partnership subject to vesting.  As promptly as practicable after the LTIP Unit Distribution Participation Date, an amount equal to the positive difference (if any) between (A) the Contingent Distributions that would have been paid with respect to those [    ] LTIP Units (PB) that have become vested pursuant to Sections 4 or 5 hereof and (B) if any, the Current Distributions paid to the Grantee prior to the LTIP Unit Distribution Participation Date in accordance with Section 7(b) in respect of the Unearned [    ] LTIP Units (PB) shall be paid to the Grantee.  The “Unearned [    ] LTIP Units (PB)” means the number of [    ] LTIP Units (PB), if any, that are forfeited following vesting pursuant to Sections 4 or 5 hereof.  Any portion of the notional account that is not payable to the Grantee shall be forfeited and revert to the Partnership free and clear of any claims by the Grantee.  
(d)    To the extent that the Partnership makes distributions to holders of Units partially in cash and partially in additional Units or other securities, unless the Committee in its sole discretion determines to allow the Grantee to make a different election, the Grantee shall be deemed to have elected with respect to all [    ] LTIP Units (PB) eligible to receive such distribution to receive 10% of such distribution in cash and 90% in Units, with the cash component constituting the Current Distribution prior to the LTIP Unit Distribution Participation Date.
8.    Restrictions on Transfer.  None of the [    ] LTIP Units (PB) shall be sold, assigned, transferred, pledged or otherwise disposed of or encumbered (whether voluntarily or involuntarily or by judgment, levy, attachment, garnishment or other legal or equitable proceeding) (each such action a “Transfer”), or redeemed in accordance with the Partnership Agreement (a) until after they have become vested pursuant to Section 4 or Section 5 other than in connection with a Change of Control, and (b) unless such Transfer is in compliance with all applicable securities laws (including, without limitation, the Securities Act of 1933, as amended (the “Securities Act”)), and such Transfer is in accordance with the applicable terms and conditions of the Partnership Agreement; provided, however, that clause (a) above shall not apply with respect to (i) the conversion into Units of [    ] LTIP Units (PB) that have become vested in accordance with Sections 4 or 5 hereof (“Converted LTIP Units”) or (ii) any Transfer either of [    ] LTIP Units (PB) that have become vested in accordance with Sections 4 or 5 hereof or of Converted LTIP Units, so long as such Transfer is (A) permitted under the Partnership Agreement and (B) in connection with donative, estate or tax planning by the Grantee; and provided, further, that the Transferee agrees in writing with the Company and the Partnership not to make any further Transfer of such vested [    ] LTIP Units (PB) or Converted LTIP Units other than as permitted by this Section 8.  In connection with any Transfer of [    ] LTIP Units (PB) or Converted LTIP Units, the Partnership may require the Grantee to provide an opinion of counsel, satisfactory to the Partnership, that such Transfer is in compliance with all federal and state securities laws (including, without limitation, the Securities Act).  Any attempted Transfer of [    ] LTIP Units (PB) not in accordance with the terms and conditions of this Section 8 shall be null and void, and the Partnership shall not reflect on its records any change in record ownership of any [    ] LTIP Units (PB) as a result of any such Transfer, shall otherwise refuse to recognize any such Transfer and shall not in any way give effect to any such Transfer of any [    ] LTIP Units (PB).  The restrictions on Transfer in this Section 8 shall not be interpreted to prohibit the Grantee from designating one or more beneficiaries to receive the Grantee’s LTIP Units or Converted LTIP Units 

16

that are payable in the event of the Grantee’s death.  Any such beneficiary designation shall be on a form provided or approved by the Company.
9.    Changes in Capital Structure.  Without duplication with the provisions of Section 6.2 of the Stock Plan, if (a) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of shares, sale of all or substantially all of the assets or stock of the Company, spin-off of a Subsidiary, business unit or significant portion of assets or other fundamental transaction similar thereto, (b) any stock dividend, stock split, reverse stock split, stock combination, reclassification, recapitalization, significant repurchases of stock, or other similar change in the capital structure of the Company shall occur, (c) any extraordinary dividend or other distribution to holders of shares of Common Stock or Units other than regular cash dividends shall be made, or (d) any other event shall occur that in each case in the good faith judgment of the Committee necessitates action by way of appropriate equitable adjustment in the terms of this Award, the LTIP or the [    ] LTIP Units (PB), then the Committee shall take such action as it deems necessary to maintain the Grantee’s rights hereunder so that they are substantially proportionate to the rights existing under this Award, the LTIP and the terms of the [    ] LTIP Units (PB) prior to such event, including, without limitation:  (i) adjustments in the [    ] LTIP Units (PB), Share Price, Total Return or other pertinent terms of this Award; and (ii) substitution of other awards under the Stock Plan or otherwise.  The Grantee shall have the right to vote the [    ] LTIP Units (PB) if and when voting is allowed under the Partnership Agreement, regardless of whether vesting has occurred.
10.    Miscellaneous.
(a)    Amendments; Modifications.  This Agreement may be amended or modified only with the consent of the Company and the Partnership; provided that any such amendment or modification materially and adversely affecting the rights of the Grantee hereunder must be consented to by the Grantee to be effective as against him; and provided, further, that the Grantee acknowledges that the Stock Plan may be amended or discontinued in accordance with Section 6.6 thereof and that this Agreement may be amended or canceled by the Committee, on behalf of the Company and the Partnership, for the purpose of satisfying changes in law or for any other lawful purpose, so long as no such action shall impair the Grantee’s rights under this Agreement without the Grantee’s written consent.  Notwithstanding the foregoing, this Agreement may be amended in writing signed only by the Company to correct any errors or ambiguities in this Agreement and/or to make such changes that do not materially adversely affect the Grantee’s rights hereunder.  No promises, assurances, commitments, agreements, undertakings or representations, whether oral, written, electronic or otherwise, and whether express or implied, with respect to the subject matter hereof, have been made by the parties which are not set forth expressly in this Agreement.  This grant shall in no way affect the Grantee’s participation or benefits under any other plan or benefit program maintained or provided by the Company.
(b)    Incorporation of Stock Plan and Change in Control Arrangement; Committee Determinations.  The provisions of the Stock Plan and Change in Control Arrangement are hereby incorporated by reference as if set forth herein.  In the event of a conflict between this Agreement and the Stock Plan or this Agreement and the Change in Control Arrangement, this Agreement shall 

17

be controlling and determinative.  The Committee will make the determinations and certifications required by this Award as promptly as reasonably practicable following the occurrence of the event or events necessitating such determinations or certifications.  In the event of a Change of Control, the Committee will perform any calculations set forth in Section 4 or Section 5 hereof required in connection with such Change of Control and make any determinations relevant to vesting with respect to this Award within a period of time that enables the Company to conclude whether [    ] LTIP Units (PB) become vested or are forfeited prior to the effective date of the Change of Control, which determinations could, for the avoidance of doubt, include good faith assumptions.
(c)    Status as a Partner.  As of the grant date set forth on Schedule A, the Grantee shall be admitted as a partner of the Partnership with beneficial ownership of the number of [    ] LTIP Units (PB) issued to the Grantee as of such date pursuant to Section 3(a) hereof by:  (A) signing and delivering to the Partnership a copy of this Agreement; and (B) signing, as a Limited Partner, and delivering to the Partnership a counterpart signature page to the Partnership Agreement (attached hereto as Exhibit A).  
(d)    Status of [    ] LTIP Units (PB) under the Stock Plan.  Insofar as the LTIP has been established as an incentive program of the Company and the Partnership, the [    ] LTIP Units (PB) are both issued as equity securities of the Partnership and granted as awards under the Stock Plan.  The Company will have the right at its option, as set forth in the Partnership Agreement, to issue shares of Common Stock in exchange for Units into which [    ] LTIP Units (PB) may have been converted pursuant to the Partnership Agreement, subject to certain limitations set forth in the Partnership Agreement, and such shares of Common Stock, if issued, will be issued under the Stock Plan.  The Grantee must be eligible to receive the [    ] LTIP Units (PB) in compliance with applicable federal and state securities laws and to that effect is required to complete, execute and deliver certain covenants, representations and warranties (attached as Exhibit B).  The Grantee acknowledges that the Grantee will have no right to approve or disapprove such determination by the Committee.
(e)    Legend.  The records of the Partnership evidencing the [    ] LTIP Units (PB) shall bear an appropriate legend, as determined by the Partnership in its sole discretion, to the effect that such [    ] LTIP Units (PB) are subject to restrictions as set forth herein, in the Stock Plan and in the Partnership Agreement.
(f)    Compliance With Securities Laws.  The Partnership and the Grantee will make reasonable efforts to comply with all applicable securities laws.  In addition, notwithstanding any provision of this Agreement to the contrary, no [    ] LTIP Units (PB) will become vested or be issued at a time that such vesting or issuance would result in a violation of any such laws.
(g)    Investment Representations; Registration.  The Grantee hereby makes the covenants, representations and warranties set forth on Exhibit B attached hereto.  All of such covenants, warranties and representations shall survive the execution and delivery of this Agreement by the Grantee.  The Partnership will have no obligation to register under the Securities Act any [    ] LTIP Units (PB) or any other securities issued pursuant to this Agreement or upon conversion or exchange of [    ] LTIP Units (PB).  The Grantee agrees that any resale of the shares of Common Stock received upon the exchange of Units into which [    ] LTIP Units (PB) may be converted shall not occur during the “blackout periods” forbidding sales of Company securities, as set forth in the 

18

then applicable Company employee manual or insider trading policy.  In addition, any resale shall be made in compliance with the registration requirements of the Securities Act or an applicable exemption therefrom, including, without limitation, the exemption provided by Rule 144 promulgated thereunder (or any successor rule).
(h)    Section 83(b) Election.  In connection with the issuance of [    ] LTIP Units (PB) under this Award pursuant to Section 3 hereof the Grantee may (but is not required to) make an election to include in gross income in the year of transfer the applicable [    ] LTIP Units (PB) pursuant to Section 83(b) of the Code substantially in the form attached hereto as Exhibit C and, if such an election is made, the Grantee shall provide to the Company a copy thereof and supply to the Company such other information as the Company is required to maintain or file in accordance with the regulations promulgated thereunder.  
(i)    Severability.  If, for any reason, any provision of this Agreement is held invalid, such invalidity shall not affect any other provision of this Agreement not so held invalid, and each such other provision shall to the full extent consistent with law continue in full force and effect.  If any provision of this Agreement shall be held invalid in part, such invalidity shall in no way affect the rest of such provision not held so invalid, and the rest of such provision, together with all other provisions of this Agreement, shall to the full extent consistent with law continue in full force and effect.
(j)    Governing Law.  This Agreement is made under, and will be construed in accordance with, the laws of the State of Delaware, without giving effect to the principles of conflict of laws of such state.
(k)    No Obligation to Continue Position as an Employee, Consultant or Advisor.  Neither the Company nor any affiliate is obligated by or as a result of this Agreement to continue to have the Grantee as an employee, consultant or advisor and this Agreement shall not interfere in any way with the right of the Company or any affiliate to terminate the Grantee’s service relationship at any time.
(l)    Notices.  Any notice to be given to the Company shall be addressed to the Secretary of the Company at its principal place of business and any notice to be given the Grantee shall be addressed to the Grantee at the Grantee’s address as it appears on the employment records of the Company, or at such other address as the Company or the Grantee may hereafter designate in writing to the other.
(m)    Withholding and Taxes.  No later than the date as of which an amount first becomes includible in the gross income of the Grantee for income tax purposes or subject to the Federal Insurance Contributions Act withholding with respect to this Award, the Grantee will pay to the Company or, if appropriate, any of its affiliates, or make arrangements satisfactory to the Committee regarding the payment of, any United States federal, state or local or foreign taxes of any kind required by law to be withheld with respect to such amount.  The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company and its affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the Grantee.

19

(n)    Headings.  The headings of paragraphs hereof are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.
(o)    Counterparts.  This Agreement may be executed in multiple counterparts with the same effect as if each of the signing parties had signed the same document.  All counterparts shall be construed together and constitute the same instrument.
(p)    Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and any successors to the Company and the Partnership, on the one hand, and any successors to the Grantee, on the other hand, by will or the laws of descent and distribution, but this Agreement shall not otherwise be assignable or otherwise subject to hypothecation by the Grantee.  
(q)    409A.  To the extent applicable, this Agreement shall be construed, administered and interpreted in accordance with a good faith interpretation of Section 409A of the Code.  Any provision of this Agreement that is inconsistent with Section 409A of the Code, to the extent applicable, or that may result in penalties under Section 409A of the Code, shall be amended, in consultation with the Grantee and with the reasonable cooperation of the Grantee and the Company, in the least restrictive manner necessary to (i) exclude the applicable payment or benefit under this Agreement from the definition of “deferred compensation” within the meaning of such Section 409A or (ii) comply with the provisions of Section 409A, other applicable provision(s) of the Code and/or any rules, regulations or other regulatory guidance issued under such statutory provisions, in each case without diminution in the value of the benefits granted hereby to the Grantee.  Notwithstanding anything herein to the contrary, in the event the amounts payable under this Agreement are determined to constitute “nonqualified deferred compensation” subject to Section 409A of the Code, then, to the extent the Grantee is a “specified employee” under Section 409A of the Code subject to the six-month delay thereunder, any such vesting or related payments to be made during the six-month period commencing on the Grantee’s “separation from service” (as defined in Section 409A of the Code) shall be delayed until the expiration of such six-month period.
(r)    Complete Agreement.  This Agreement (together with those agreements and documents expressly referred to herein, for the purposes referred to herein) embody the complete and entire agreement and understanding between the parties with respect to the subject matter hereof, and supersede any and all prior promises, assurances, commitments, agreements, undertakings or representations, whether oral, written, electronic or otherwise, and whether express or implied, which may relate to the subject matter hereof in any way.

[signature page follows]
IN WITNESS WHEREOF, the undersigned have caused this Award Agreement to be executed as of the 1st day of January, [   ].

20

	
	
	THE MACERICH COMPANY

	By:      

	 

	THE MACERICH PARTNERSHIP, L.P.

	By:     The Macerich Company, 
its general partner   

	 

	By:      

	 

	GRANTEE

	 

21

EXHIBIT A
FORM OF LIMITED PARTNER SIGNATURE PAGE
The Grantee, desiring to become one of the within named Limited Partners of The Macerich Company, L.P., hereby accepts all of the terms and conditions of (including, without limitation, the provisions related to powers of attorney), and becomes a party to, the Agreement of Limited Partnership, dated as of March 16, 1994, of The Macerich Partnership, L.P., as amended (the “Partnership Agreement”).  The Grantee agrees that this signature page may be attached to any counterpart of the Partnership Agreement and further agrees as follows (where the term “Limited Partner” refers to the Grantee):
1.    The Limited Partner hereby confirms that it has reviewed the terms of the Partnership Agreement and affirms and agrees that it is bound by each of the terms and conditions of the Partnership Agreement, including, without limitation, the provisions thereof relating to limitations and restrictions on the transfer of Partnership Units.  Without limitation of the foregoing, the Limited Partner is deemed to have made all of the acknowledgements, waivers and agreements set forth in Sections 10.6 and 13.11 of the Partnership Agreement.
2.    The Limited Partner hereby confirms that it is acquiring the Partnership Units for its own account as principal, for investment and not with a view to resale or distribution, and that the Partnership Units may not be transferred or otherwise disposed of by the Limited Partner otherwise than in a transaction pursuant to a registration statement filed by the Partnership (which it has no obligation to file) or that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and all applicable state and foreign securities laws, and the General Partner may refuse to transfer any Partnership Units as to which evidence of such registration or exemption from registration satisfactory to the General Partner is not provided to it, which evidence may include the requirement of a legal opinion regarding the exemption from such registration.  If the General Partner delivers to the Limited Partner shares of common stock of the General Partner (“Common Shares”) upon redemption of any Partnership Units, the Common Shares will be acquired for the Limited Partner’s own account as principal, for investment and not with a view to resale or distribution, and the Common Shares may not be transferred or otherwise disposed of by the Limited Partner otherwise than in a transaction pursuant to a registration statement filed by the General Partner with respect to such Common Shares (which it has no obligation under the Partnership Agreement to file) or that is exempt from the registration requirements of the Securities Act and all applicable state and foreign securities laws, and the General Partner may refuse to transfer any Common Shares as to which evidence of such registration or exemption from such registration satisfactory to the General Partner is not provided to it, which evidence may include the requirement of a legal opinion regarding the exemption from such registration.
3.    The Limited Partner hereby affirms that it has appointed the General Partner, any Liquidator and authorized officers and attorneys-in-fact of each, and each of those acting singly, in each case with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead, in accordance with Section 6.10 of the Partnership Agreement, which Section is hereby incorporated by reference.  The foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, and it shall survive and 

A-1

not be affected by the death, incompetency, dissolution, disability, incapacity, bankruptcy or termination of the Limited Partner and shall extend to the Limited Partner’s heirs, executors, administrators, legal representatives, successors and assigns.
4.    The Limited Partner hereby irrevocably consents in advance to any amendment to the Partnership Agreement, as may be recommended by the General Partner, intended to avoid the Partnership being treated as a publicly-traded partnership within the meaning of Section 7704 of the Internal Revenue Code, including, without limitation, (a) any amendment to the provisions of Section 9.1 or the Redemption Rights Exhibit of the Partnership Agreement intended to increase the waiting period between the delivery of a notice of redemption and the redemption date to up to sixty (60) days or (b) any other amendment to the Partnership Agreement intended to make the redemption and transfer provisions, with respect to certain redemptions and transfers, more similar to the provisions described in Treasury Regulations Section 1.7704 1(f).
5.    The Limited Partner hereby appoints the General Partner, any liquidator and authorized officers and attorneys-in-fact of each, and each of those acting singly, in each case with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead, to execute and deliver any amendment referred to in the foregoing paragraph 4(a) on the Limited Partner’s behalf.  The foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, and it shall survive and not be affected by the death, incompetency, dissolution, disability, incapacity, bankruptcy or termination of the Limited Partner and shall extend to the Limited Partner’s heirs, executors, administrators, legal representatives, successors and assigns.
6.    The Limited Partner agrees that it will not transfer any interest in the Partnership Units (i) through a national, non-U.S., regional, local or other securities exchange or (ii) an over-the-counter market (including an interdealer quotation system that regularly disseminates firm buy or sell quotations by identified brokers or dealers by electronic means or otherwise) or (iii) to or through (a) a person, such as a broker or dealer, that makes a market in, or regularly quotes prices for, interests in the Partnership or (b) a person that regularly makes available to the public (including customers or subscribers) bid or offer quotes with respect to any interests in the Partnership and stands ready to effect transactions at the quoted prices for itself or on behalf of others.  
7.    The Limited Partner acknowledges that the General Partner shall be a third party beneficiary of the representations, covenants and agreements set forth in Sections 4 and 5 hereof.  The Limited Partner agrees that it will transfer, whether by assignment or otherwise, Partnership Units only to the General Partner or to transferees that provide the Partnership and the General Partner with the representations and covenants set forth in Sections 4 and 5 hereof.
8.    This Acceptance shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflicts of law.

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Signature Line for Limited Partner:

Date:  January 1, [   ]
Address of Limited Partner:

A-3

EXHIBIT B
GRANTEE’S COVENANTS, REPRESENTATIONS AND WARRANTIES
The Grantee hereby represents, warrants and covenants as follows:
(a)    The Grantee has received and had an opportunity to review the following documents (the “Background Documents”):
(i)    The Company’s latest Annual Report to Stockholders; 
(ii)    The Company’s Proxy Statement for its most recent Annual Meeting of Stockholders; 
(iii)    The Company’s Report on Form 10-K for the fiscal year most recently ended;
(iv)    The Company’s Form 10-Q, if any, for the most recently ended quarter filed by the Company with the Securities and Exchange Commission since the filing of the Form 10-K described in clause (iii) above;
(v)    Each of the Company’s Current Report(s) on Form 8-K, if any, filed since the end of the fiscal year most recently ended for which a Form 10-K has been filed by the Company;
(vi)    The Partnership Agreement; 
(vii)    The Stock Plan; and
(viii)    The Company’s Articles of Amendment and Restatement, as amended.
The Grantee also acknowledges that any delivery of the Background Documents and other information relating to the Company and the Partnership prior to the determination by the Partnership of the suitability of the Grantee as a holder of [    ] LTIP Units (PB) shall not constitute an offer of [    ] LTIP Units (PB) until such determination of suitability shall be made.
(b)    The Grantee hereby represents and warrants that 
(i)    The Grantee either (A) is an “accredited investor” as defined in Rule 501(a) under the Securities Act, or (B) by reason of the business and financial experience of the Grantee, together with the business and financial experience of those persons, if any, retained by the Grantee to represent or advise him with respect to the grant to him of [    ] LTIP Units (PB), the potential conversion of [    ] LTIP Units (PB) into units of limited partnership of the Partnership (“Common Units”) and the potential redemption of such Common Units for shares the Company’s common stock (“REIT Shares”), has such knowledge, sophistication and experience in financial and business matters and in making investment decisions of this type that the Grantee (I) is capable of evaluating the merits and risks of an investment in the Partnership and potential investment in the Company and of making an informed 

B-1

investment decision, (II) is capable of protecting his own interest or has engaged representatives or advisors to assist him in protecting his interests, and (III) is capable of bearing the economic risk of such investment.
(ii)    The Grantee, after due inquiry, hereby certifies that for purposes of Rule 506(d) and Rule 506(e) of the Securities Act, he is not subject to any felony or misdemeanor conviction related to any securities matter; any federal or state order, judgment, decree or injunction related to any securities, insurance, banking or U.S. Postal Service matter; any SEC disciplinary or cease and desist order; or any suspension, expulsion or bar related to a registered national securities exchange, national or affiliated securities association or member thereof, whether it occurred or was issued before, on or after September 23, 2013, and agrees that he will notify the Company immediately upon becoming aware that the foregoing is not, or is no longer, complete and accurate in every material respect, including as a result of events occurring after the date hereof.
(iii)    The Grantee understands that (A) the Grantee is responsible for consulting his own tax advisors with respect to the application of the U.S. federal income tax laws, and the tax laws of any state, local or other taxing jurisdiction to which the Grantee is or by reason of the award of [    ] LTIP Units (PB) may become subject, to his particular situation; (B) the Grantee has not received or relied upon business or tax advice from the Company, the Partnership or any of their respective employees, agents, consultants or advisors, in their capacity as such; (C) the Grantee provides services to the Partnership on a regular basis and in such capacity has access to such information, and has such experience of and involvement in the business and operations of the Partnership, as the Grantee believes to be necessary and appropriate to make an informed decision to accept the award of [    ] LTIP Units (PB); and (D) an investment in the Partnership and/or the Company involves substantial risks.  The Grantee has been given the opportunity to make a thorough investigation of matters relevant to the [    ] LTIP Units (PB) and has been furnished with, and has reviewed and understands, materials relating to the Partnership and the Company and their respective activities (including, but not limited to, the Background Documents).  The Grantee has been afforded the opportunity to obtain any additional information (including any exhibits to the Background Documents) deemed necessary by the Grantee to verify the accuracy of information conveyed to the Grantee.  The Grantee confirms that all documents, records, and books pertaining to his receipt of [    ] LTIP Units (PB) which were requested by the Grantee have been made available or delivered to the Grantee.  The Grantee has had an opportunity to ask questions of and receive answers from the Partnership and the Company, or from a person or persons acting on their behalf, concerning the terms and conditions of the [    ] LTIP Units (PB).  The Grantee has relied upon, and is making its decision solely upon, the Background Documents and other written information provided to the Grantee by the Partnership or the Company.
(iv)    The [    ] LTIP Units (PB) to be issued, the Common Units issuable upon conversion of the [    ] LTIP Units (PB) and any REIT Shares issued in connection with the redemption of any such Common Units will be acquired for the account of the Grantee for investment only and not with a current view to, or with any intention of, a distribution or 

B-2

resale thereof, in whole or in part, or the grant of any participation therein, without prejudice, however, to the Grantee’s right (subject to the terms of the [    ] LTIP Units (PB), the Stock Plan, the agreement of limited partnership of the Partnership, the articles of organization of the Company, as amended, and the Award Agreement) at all times to sell or otherwise dispose of all or any part of his [    ] LTIP Units (PB), Common Units or REIT Shares in compliance with the Securities Act, and applicable state securities laws, and subject, nevertheless, to the disposition of his assets being at all times within his control.  
(v)    The Grantee acknowledges that (A) neither the [    ] LTIP Units (PB) to be issued, nor the Common Units issuable upon conversion of the [    ] LTIP Units (PB), have been registered under the Securities Act or state securities laws by reason of a specific exemption or exemptions from registration under the Securities Act and applicable state securities laws and, if such [    ] LTIP Units (PB) or Common Units are represented by certificates, such certificates will bear a legend to such effect, (B) the reliance by the Partnership and the Company on such exemptions is predicated in part on the accuracy and completeness of the representations and warranties of the Grantee contained herein, (C) such [    ] LTIP Units (PB) or Common Units, therefore, cannot be resold unless registered under the Securities Act and applicable state securities laws, or unless an exemption from registration is available, (D) there is no public market for such [    ] LTIP Units (PB) and Common Units and (E) neither the Partnership nor the Company has any obligation or intention to register such [    ] LTIP Units (PB) or the Common Units issuable upon conversion of the [    ] LTIP Units (PB) under the Securities Act or any state securities laws or to take any action that would make available any exemption from the registration requirements of such laws, except, that, upon the redemption of the Common Units for REIT Shares, the Company may issue such REIT Shares under the Stock Plan and pursuant to a Registration Statement on Form S-8 under the Securities Act, to the extent that (I) the Grantee is eligible to receive such REIT Shares under the Stock Plan at the time of such issuance, (II) the Company has filed a Form S-8 Registration Statement with the Securities and Exchange Commission registering the issuance of such REIT Shares and (III) such Form S-8 is effective at the time of the issuance of such REIT Shares.  The Grantee hereby acknowledges that because of the restrictions on transfer or assignment of such [    ] LTIP Units (PB) acquired hereby and the Common Units issuable upon conversion of the [    ] LTIP Units (PB) which are set forth in the Partnership Agreement or this Agreement, the Grantee may have to bear the economic risk of his ownership of the [    ] LTIP Units (PB) acquired hereby and the Common Units issuable upon conversion of the [    ] LTIP Units (PB) for an indefinite period of time.
(vi)    The Grantee has determined that the [    ] LTIP Units (PB) are a suitable investment for the Grantee.
(vii)    No representations or warranties have been made to the Grantee by the Partnership or the Company, or any officer, director, stockholder, agent, or affiliate of any of them, and the Grantee has received no information relating to an investment in the Partnership or the [    ] LTIP Units (PB) except the information specified in paragraph (b) above.

B-3

(c)    So long as the Grantee holds any [    ] LTIP Units (PB), the Grantee shall disclose to the Partnership in writing such information as may be reasonably requested with respect to ownership of [    ] LTIP Units (PB) as the Partnership may deem reasonably necessary to ascertain and to establish compliance with provisions of the Code, applicable to the Partnership or to comply with requirements of any other appropriate taxing authority.
(d)    The Grantee hereby agrees to make an election under Section 83(b) of the Code with respect to the [    ] LTIP Units (PB) awarded hereunder, and has delivered with this Agreement a completed, executed copy of the election form attached hereto as Exhibit C.  The Grantee agrees to file the election (or to permit the Partnership to file such election on the Grantee’s behalf) within thirty (30) days after the award of the [    ] LTIP Units (PB) hereunder with the IRS Service Center at which such Grantee files his personal income tax returns, and to file a copy of such election with the Grantee’s U.S. federal income tax return for the taxable year in which [    ] LTIP Units (PB) are issued or awarded to the Grantee.
(e)    The address set forth on the signature page of this Agreement is the address of the Grantee’s principal residence, and the Grantee has no present intention of becoming a resident of any country, state or jurisdiction other than the country and state in which such residence is sited.

B-4

EXHIBIT C
ELECTION TO INCLUDE IN GROSS INCOME IN YEAR OF  
TRANSFER OF PROPERTY PURSUANT TO SECTION 83(b)  
OF THE INTERNAL REVENUE CODE
The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, Treasury Regulations Section 1.83-2 promulgated thereunder, and Rev. Proc. 2012-29, 2012-28 IRB, 06/26/2012, to include in gross income as compensation for services the excess (if any) of the fair market value of the property described below over the amount paid for such property. 
		
	1.
	The name, address and taxpayer identification number of the undersigned are:

Name:         (the “Taxpayer”)
Address:        
        
Social Security No./Taxpayer Identification No.:      
Taxable Year:  Calendar Year [__]
		
	2.
	Description of property with respect to which the election is being made:

The election is being made with respect to      [    ] LTIP Units (PB) in The Macerich Partnership, L.P. (the “Partnership”).
		
	3.
	The date on which the [    ] LTIP Units (PB) were transferred to the undersigned is     , [__]. 

		
	4.
	Nature of restrictions to which the [    ] LTIP Units (PB) are subject:

		
	(a)
	Until the [    ] LTIP Units (PB) vest, the Taxpayer may not transfer in any manner any portion of the [    ] LTIP Units (PB) without the consent of the Partnership. 

		
	(b)
	The Taxpayer’s [    ] LTIP Units (PB) vest in accordance with the vesting provisions described in the Schedule attached hereto.  Unvested [    ] LTIP Units (PB) are forfeited in accordance with the vesting provisions described in the Schedule attached hereto.

		
	5.
	The fair market value at time of transfer (determined without regard to any restrictions other than a nonlapse restriction as defined in Treasury Regulations Section 1.83-3(h)) of the [    ] LTIP Units (PB) with respect to which this election is being made was $0 per [    ] LTIP Unit (PB).

C-1

		
	6.
	The amount paid by the Taxpayer for the [    ] LTIP Units (PB) was $0 per [    ] LTIP Unit (PB).

		
	7.
	The amount to include in gross income is $0.

The undersigned taxpayer will file this election with the Internal Revenue Service office with which taxpayer files his or her annual income tax return not later than 30 days after the date of transfer of the property.  A copy of the election also will be furnished to the person for whom the services were performed.  Additionally, the undersigned will include a copy of the election with his or her income tax return for the taxable year in which the property is transferred.  The undersigned is the person performing the services in connection with which the property was transferred.
Dated:      

C-2

SCHEDULE TO 83(b) ELECTION
Vesting Provisions of [    ] LTIP Units (PB)
The [    ] LTIP Units (PB) are subject to performance-based vesting.  Performance-based vesting will be from 0-100% based on The Macerich Company’s (the “Company”) per-share total return to holders of common stock (the “Total Return”) for the period from January 1, [    ] through December 31, [    ] (or earlier in certain circumstances).  The [    ] LTIP Units (PB) may vest depending on the percentile rank of the Company in terms of Total Return relative to the Total Return of a group of peer REITs (the “Peer REITs”), as measured at the end of the performance period.  Vesting of the [    ] LTIP Units (PB) will occur as follows:
	
		
	Percentile Rank
	Award Vested (*)

	At or above the 75th percentile
	100%

	At the 50th percentile
	66-2/3%

	At the 25th percentile
	33-1/3%

	Below the 25th percentile
	0%

(*) Linear interpolation between the 25th and 75th percentiles.
The above vesting is conditioned upon the Taxpayer remaining an employee of the Company through the applicable vesting date, subject to acceleration under specified circumstances.  Unvested [    ] LTIP Units (PB) are subject to forfeiture in the event of failure to vest.  

SCHEDULE A TO [    ] LTIP UNIT AWARD AGREEMENT  
(PERFORMANCE-BASED)
	
		
	Date of Award Agreement:
	January 1, [__]

	Name of Grantee:
	 

	Number of [    ] LTIP Units (PB) Subject to Grant:
	 

	Grant Date:
	January 1, [__]

Initials of Company representative:      
Initials of Grantee:

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