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CHANGE IN CONTROL SEVERANCE AGREEMENT

    THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the “Agreement”) is made and entered into effective as of March 21, 2022 (“Effective Date”), between Centerspace, a North Dakota real estate investment trust (the “Company”), and Bhairav Patel (the “Executive”).  Certain capitalized terms used in this Agreement are defined in Section 4. 

    WHEREAS, the Company acknowledges that the Executive has made, and is expected to make, significant contributions to the growth and success of the Company and its Affiliates; and

    WHEREAS, the Company recognizes that the possibility of a Change in Control may contribute to uncertainty on the part of the Executive with respect to the Executive’s continued employment and may result in the distraction of the Executive from the Executive’s operating responsibilities to the Company and its Affiliates; and

    WHEREAS, the Company wishes to provide the Executive assurances regarding the benefits that will be payable to the Executive in the event the Executive’s employment with the Company and its Affiliates is terminated without Cause or on account of the Executive’s resignation with Good Reason within a specified period before or after a Change in Control, subject to the terms and conditions set forth in this Agreement; and

    WHEREAS, the Company is willing to provide such assurances only in accordance with the terms and conditions of this Agreement and most especially in exchange for the Executive’s covenants and promises set forth in Section 3 of this Agreement;

    NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth in this Agreement and the compensation and benefits the Company agrees herein to pay the Executive and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows:

1.Term of Agreement.  The Initial Term of this Agreement begins on the Effective Date and ends on the first anniversary of the Effective Date.  Commencing on the first anniversary of the Effective Date, and on each anniversary thereafter, the term of this Agreement shall be automatically extended for one additional year unless the Company or the Executive, not later than 30 days prior to an anniversary of the Effective Date, shall have given written notice that the Company or the Executive does not wish to extend this Agreement.  For purposes of this Agreement, the word “Term” means the Initial Term and the period of any extension pursuant to the preceding sentence or the following sentence.  Notwithstanding the preceding sentences, if a Control Change Date occurs during the Term, the Term of this Agreement shall not end before the day before the second anniversary of the Control Change Date.  
2.Severance Benefits.
1.01.Eligibility for Benefits.  The Executive shall be entitled to receive the benefits described in this Section 2 (the “Severance Benefits”) if a Control Change Date occurs during the Term and, during the period beginning 90 days before the Control Change Date and ending on the second anniversary of the Control Change Date (i) the Company terminates the Executive’s employment with the Company and its Affiliates without Cause or (ii) the Executive resigns from the employment of the Company and its Affiliates and the Executive has Good Reason to resign. 
1.02.Severance Pay.  If the requirements of Section 2.01 are satisfied, the Company shall pay the Executive the amount equal to one (1) times the sum of (i) the Executive’s Base Salary plus (ii) the Executive’s target annual cash bonus for the year in which the Change in 
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Control Date occurs (the “Severance Pay”).  The Severance Pay shall be paid in a single cash payment, less deductions for applicable income and employment taxes.  Subject to Section 6, the Severance Pay shall be paid within five business days after the later of (i) the date the Executive’s employment with the Company and its Affiliates terminates and (ii) the date that the release required under Section 2.06 becomes effective.
1.03.Long-Term Incentives.  If the requirements of Section 2.01 are satisfied, outstanding equity or equity-based awards granted to the Executive under the Equity Plan that are not earned, vested or exercisable on or before the termination of the Executive’s employment or on account of the Change in Control shall be earned, become vested or become exercisable as described in the following paragraphs (a) and (b), as applicable.
(a)In the case of awards that are earned, become vested or become exercisable solely on account of the Executive’s continued employment with the Company and its Affiliates (i) outstanding options to purchase Company stock granted to the Executive under the Equity Plan shall become exercisable, in whole or in part, for the shares that remain subject to the option, as of the date the Executive’s employment terminates and shall remain exercisable until the expiration date of the option (as if the Executive’s employment did not terminate), (ii) outstanding stock awards, i.e., shares of restricted stock granted to the Executive under the Equity Plan, shall become vested and transferable as of the date the Executive’s employment terminates and (iii) outstanding stock unit awards granted to the Executive under the Equity Plan shall be earned (for the maximum number of units that may be earned under the award) and settled in cash, Company stock or a combination thereof in accordance with their terms as of the date the Executive’s employment terminates or the date determined under Section 6.
(b)In the case of awards that are earned, become vested or become exercisable upon the achievement of performance goals, objectives or measures (i) outstanding options to purchase Company stock granted to the Executive under the Equity Plan shall remain outstanding until the end of the performance measurement period or periods and shall become exercisable thereafter, in whole or in part, as though the Target performance goals, objectives or measures were achieved and shall remain exercisable until the expiration date of the option (as if the Executive’s employment did not terminate), (ii) outstanding stock awards, i.e., shares of restricted stock granted to the Executive under the Equity Plan, shall remain outstanding until the end of the performance measurement period or periods and shall become vested and transferable as though the Target performance goals, objectives or measures were achieved, (iii) dividends payable on stock awards described in the preceding clause (ii) after the date the Executive’s employment terminates shall be retained by the Company and paid to the Executive to the extent that the underlying stock award becomes vested and transferable and (iv) outstanding stock unit awards and related dividend equivalent rights granted to the Executive under the Equity Plan shall remain outstanding until the end of the performance measurement period or periods and shall be earned as though the Target performance goals, objectives or measures are achieved.
1.04.Health Benefits.  If the requirements of Section 2.01 are satisfied, the Company shall reimburse the Executive the amount that the Executive pays for continued medical, dental and vision coverage under the health plan of the Company or an Affiliate pursuant to Code section 4980B for the Executive and the Executive’s “qualified beneficiaries” (as defined in Code section 4980B).  The Company shall reimburse the Executive for the cost of such coverage until the earlier of (i) the date that the Executive or qualified beneficiary is no longer entitled to continued coverage under Code section 4980B or (ii) the end of the eighteenth month of such coverage.  The first reimbursement payment shall be made on the date that is six months after the date the Executive’s employment terminates (and shall include reimbursement for amounts paid by the Executive for such coverage after the Executive’s termination).  Thereafter, the Company’s reimbursement payments shall be paid to the Executive on the fifteenth day of the calendar month following the month in which the Executive paid the cost of such coverage.  
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1.05.Other Benefits.  Except as specifically provided in this Section 2, the Executive’s right to receive benefits under other plans, programs and arrangements maintained by the Company or an Affiliate shall be governed by the terms of such other plans, programs and arrangements that are applicable to terminated participants.
1.06.Release.  Notwithstanding any other provision of this Section 2, no Severance Benefits will be paid or provided to, or on behalf of, the Executive under Section 2.02, 2.03 or 2.04 unless the Executive has signed a release and waiver of claims and such release and waiver of claims has become binding and irrevocable no later than the sixtieth (60th) day after the date the Executive’s employment with the Company and its Affiliates terminates.  The release required by this Section 2.06 (i) shall be provided to the Executive by the Company within five (5) days after the Executive’s employment with the Company and its Affiliates terminates and (ii) shall be in substantially the same form as set forth in Exhibit A.
1.07.Forfeiture of Severance Benefits.  The Executive shall forfeit the right to receive the Severance Benefits (other than the benefits described in Section 2.05) if the Executive breaches any of the covenants set forth in Section 3.  If the Executive breaches any of the covenants set forth in Section 3, the Executive shall be liable to the Company for the repayment of any Severance Benefits (other than the benefits described in Section 2.05) previously paid to the Executive.
3.Executive’s Covenants.  In consideration of the Company’s agreement to pay the benefits in accordance with Section 2 and in recognition of the services that the Executive provides to the Company and its Affiliates that are conducting, or intend to conduct, business in the United States of America, the Executive agrees to the covenants set forth in this Section 3.
1.01.Non-Competition Covenant.  During the Executive’s employment with the Company or an Affiliate and for a period of six (6) months following the date of the Executive’s Separation from Service (the “Restriction Period”), the Executive will not, either as a principal, agent, employee, employer, consultant, co-partner or otherwise, or in any other individual or representative capacity, directly or indirectly, render any services for a Competitor that are substantially similar to those the Executive rendered for the Company or an Affiliate.
1.02.Confidential Information.  The Executive acknowledges that during the Executive’s employment with the Company and its Affiliates that the Executive will be making use of, acquiring or adding to the Company’s Confidential Information.  In order to protect the Confidential Information, the Executive agrees that the Executive will not in any way utilize any of the Confidential Information except in connection with the Executive’s employment for or on behalf of the Company and its Affiliates.  The Executive agrees that the Executive will not at any time use any Confidential Information for the Executive’s own benefit or the benefit of any person except the Company and its Affiliates and will not at any time disclose any Confidential Information to anyone except in the performance of the Executive’s duties for the Company and its Affiliates.  The Executive agrees to surrender and return to the Company any and all Confidential Information in the Executive’s possession or control as of the date that the Executive’s employment with the Company and its Affiliates terminates.
1.03.Non-Recruitment Covenant.  During the Executive’s employment with the Company or an Affiliate and for a period of one (1) year following the date of the Executive’s Separation from Service, the Executive will not, either as a principal, agent, employee, employer, consultant, co-partner or otherwise, or in any other individual or representative capacity, directly or indirectly offer employment to or hire any employee of the Company or any Affiliate who was employed by the Company or any Affiliate at the time of Executive’s Separation from Service or within six (6) months prior to such Separation from Service, or solicit, or cause to be solicited or 
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recruited, any such employee of the Company or any Affiliate for the purpose of having such employee terminate his or her employment with the Company or any Affiliate.
1.04.Executive’s Acknowledgements.  The Company conducts and intends to continue to conduct its business and the business of its Affiliates in the United States.  The Executive agrees that the employment restrictions set forth herein are fair and reasonable in time, function, and geography and are no greater than necessary to protect the legitimate business interests of the Company and its Affiliates.
1.05.Reporting Obligation.  The Executive agrees that during the Restriction Period the Executive will disclose to the Company any employment obtained by the Executive.  Such disclosure shall be made within two weeks of the Executive obtaining such employment.  The Company shall maintain the confidentiality of such disclosure until the date that the Executive’s new employment is in the public domain; provided, however, that the Executive expressly consents to and authorizes the Company to disclose to any of the Executive’s subsequent employers and prospective employers both the existence and terms of this Agreement, to take any steps the Company deems necessary to enforce this Agreement and to make such disclosures, if any, that are required by law.
1.06.Company Remedies.  In the event that the Executive fails to abide by the employment and other restrictions herein, the Company shall have the right to:
(a)forego payment to the Executive of any unpaid and unearned discretionary compensation and revoke any form of compensation that has not been definitively granted or earned;
(b)seek legal remedies including, but not limited to, recovery from the Executive of damages, lost profits, amounts previously paid under Sections 2.02, 2.03 and 2.04 and reasonable attorneys’ fees incurred in the enforcement of the Executive’s promises herein; and/or
(c)obtain a temporary restraining order without further notice to the Executive and/or a preliminary injunction or other equitable relief to prevent such breach or threatened breach.
1.07.No Waiver, etc.  The Company’s remedies for breach of this Agreement shall be cumulative, and the pursuit of one remedy shall not be deemed to exclude other remedies.  No delay or omission by the Company or the Executive in exercising any right, remedy or power hereunder existing in law or equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by either of the parties from time to time and as often as may be deemed expedient or necessary by each party in that party’s sole discretion.  The Executive further agrees that no breach of this Agreement or any other agreement by the Company, shall constitute a defense to the Company’s enforcement of Sections 3.01, 3.02 and 3.03 of this Agreement in accordance with the terms set forth therein.
1.08.Interpretation of Covenants.  It is the desire    and intent of the parties hereto that the provisions of this Agreement shall be enforced to the fullest extent legally permissible.  Accordingly, if any particular provision of this Agreement shall be adjudicated to be invalid or unenforceable, the court may modify or sever such provision and such modification or deletion shall apply only with respect to the operation of such provision in the particular jurisdiction in which such adjudication is made.  In addition, if any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be constructed by limiting and reducing it, so as to be 
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enforceable to the extent compatible with the applicable law as it shall then appear.  The remaining provisions of this Agreement shall remain in full force and effect.
4.Definitions.  As used in this Agreement, certain terms have the definitions set forth below.
1.01.Affiliate.  “Affiliate” means any trade or business, whether or not incorporated, which together with the Company is treated as a single employer under Code section 414(b) or is deemed to be under common control under Code section 414(c).
1.02.Base Salary.  “Base Salary” means the Executive’s annual rate of base salary as in effect on the date that the Executive’s employment with the Company and its Affiliates terminates; provided, however, that if the Executive resigns from the employment of the Company and its Affiliates for Good Reason and the basis for the resignation is, or includes, a material reduction in the Executive’s annual rate of base salary, then “Base Salary” means the Executive’s annual rate of base salary as in effect prior to such reduction.
1.03.Board.  “Board” means the Board of Trustees of the Company.
1.04.Cause.  “Cause” means (i) the Executive’s willful conduct that is demonstrably and materially injurious to the Company or an Affiliate, monetarily or otherwise; (ii)  the Executive’s breach of a covenant set forth in Section 3; (iii) the Executive’s breach of the Executive’s fiduciary duties to the Company or an Affiliate; (iv) the Executive’s conviction of any crime (or entering a plea of guilty or nolo contendre to any crime) constituting a felony; or (v) the Executive’s entering into an agreement or consent decree or being the subject of any regulatory order that in any of such cases prohibits the Executive from serving as an officer or director of a company that has publicly traded securities.  A termination of the Executive shall not be for “Cause” unless the decision to terminate the Executive is set forth in a resolution of the Board to that effect and which specifies the particulars thereof and that is approved by a majority of the members of the Board (exclusive of the Executive if the Executive is a member of the Board) adopted at a meeting called and held for such purpose (after reasonable notice to the Executive and an opportunity for the Executive to be heard before the Board).  No act or failure to act by the Executive will be deemed “willful” if it was done or omitted to be done by the Executive in good faith or with a reasonable belief on the part of the Executive that the action or omission was in the best interest of the Company or an Affiliate.  Any act or failure to act by the Executive based upon authority given pursuant to a resolution duly adopted by the Board or based on the advice of counsel to the Company shall be conclusively presumed to be done or omitted to be done by the Executive in good faith and in the best interest of the Company and its Affiliates.  
1.05.Change in Control.  “Change in Control” has the same meaning as set forth in the Equity Plan.  
1.06.Code.  “Code” means the Internal Revenue Code of 1986, as amended.  Any reference to a particular section of the Code includes any successor provision to that particular Code section.
1.07.Competitor.  “Competitor” means any person, firm, business or other organization or entity that (a) owns and operates at least 500,000 square feet of commercial medical properties in States in which the Company and its Affiliates own commercial medical properties, or (b) owns and operates at least 5,000 market-rate multi-family units in States in which the Company and its Affiliates own market-rate multi-family properties.
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1.08.Confidential Information.  “Confidential Information” means any data or information with respect to the business conducted by the Company and its Affiliates that is material to the Company or an Affiliate and is not generally known to the public.  The term “Confidential Information” includes any such information prepared or created by the Executive during the Executive’s employment with the Company and its Affiliates, as well as such information that has been or may be created or prepared by others.
1.09.Control Change Date.  “Control Change Date” means the date on which a Change in Control occurs.  If a Change in Control occurs on account of a series of transactions or events, the Control Change Date is the date of the last of such transactions or events.
1.10.Equity Plan. “Equity Plan” means the Company’s Amended and Restated 2015 Incentive Plan, as amended, (or a predecessor or successor plan, as the same may be amended).
1.11.Good Reason.  “Good Reason” means, without the express written consent of the Executive (i) a change in the Executive’s position with the Company or an Affiliate which results in a material diminution of the Executive’s authority, duties or responsibilities; (ii) a material reduction by the Company or an Affiliate in the annual rate of the Executive’s base salary; (iii) a change in the location of the Executive’s principal office to a different place that is more than fifty miles from the Executive’s principal office immediately prior to such change or (iv) the Company’s material breach of this Agreement.  A reduction in the Executive’s rate of annual base pay shall be material if the rate of annual base salary on any date is less than ninety percent (90%) of the Executive’s highest rate of annual base pay as in effect on any date in the preceding thirty-six (36) months; provided, however, that a reduction in the Executive’s rate of annual base pay shall be disregarded to the extent that the reduction is applied similarly to the Company’s other officers.  Notwithstanding the two preceding sentences, a change in the Executive’s duties or responsibilities or a reduction in the annual rate of the Executive’s base salary in connection with the Executive’s termination of employment (for Cause, disability or retirement), shall not constitute Good Reason and the Executive shall not have Good Reason to resign solely because the Company does not have common stock or other securities that are publicly traded.  A resignation by the Executive shall not be with “Good Reason” unless the Executive gives the Company written notice specifying the event or condition that the Executive asserts constitutes Good Reason, the notice is given no more than ninety days after the occurrence of the event or initial existence of the condition that the Executive asserts constitutes Good Reason and the Company has failed to remedy or cure the event or condition during the thirty day period after such written notice is given to the Company.
1.12.Net After Tax Receipt.  “Net After Tax Receipt” means the Present Value of the total Parachute Payments or the Reduced Amount, as applicable, net of all taxes imposed on the Executive with respect thereto under Code sections 1 and 4999, determined by applying the highest marginal rate under Code section 1 which applied to the Executive’s taxable income for the immediately preceding taxable year.
1.13.Parachute Payment.  “Parachute Payment” means a payment (under this Agreement or any other plan, agreement or arrangement) that is described in Code section 280G(b)(2), determined in accordance with Code section 280G and the regulations thereunder.
1.14.Present Value.  “Present Value” means the value determined in accordance with Code section 280G(d)(4) and the regulations thereunder.
1.15.Reduced Amount.  “Reduced Amount” means the largest amount of Parachute Payments that is less than the total Parachute Payments and that may be paid to the Executive without subjecting the Executive to tax under Code section 4999.
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1.16.Separation from Service.  “Separation from Service” means the termination of the Executive’s employment with the Company and its Affiliates, determined in a manner consistent with the requirements of Treasury Regulation section 1.409A-1(b).  In accordance with, and subject to, the requirements of Treasury Regulation section 1.409A-1(b), the Executive will experience a Separation from Service when the facts and circumstances indicate that the Executive and the Company reasonably anticipate that either (i) no further services will be performed by the Executive for the Company or an Affiliate after such date (whether as an employee or independent contractor) or (ii) the bona fide services to be performed by the Executive (whether as an employee or independent contractor) after such date would permanently decrease to no more than twenty percent of the average level of such services provided by the Executive over the thirty-six month period immediately preceding such date.  If the Executive provides services to the Company or an Affiliate both as an employee and a member of the Board or a member of the board of directors of an Affiliate, the services that the Executive provides as a director shall not be taken into account in determining whether the Executive has experienced a Separation from Service to the extent provided in Treasury Regulation section 1.409A-1(h).  
1.17.Specified Employee.  “Specified Employee” means a “specified employee” as defined in Treasury Regulation section 1.409A-1(i).  Whether the Executive is a Specified Employee shall be determined using December 31 as the “specified employee identification date” under Treasury Regulation section 1.409A-1(i) and a “specified employee effective date” of the April 1 following the applicable “specified employee identification date.”
1.18.Target. “Target” means, with respect to performance goals, objectives or measures, the level of achievement required for applicable awards to vest; in the event an award has “threshold,” “target,” and “maximum” levels of achievement possible, “Target” means the “target” level of achievement. 
5.Code Section 280G.  Notwithstanding any other provision of this Agreement, if it is determined that benefits or payments payable under this Agreement, taking into account other benefits or payments provided under other plans, agreements or arrangements, constitute Parachute Payments that would subject the Executive to tax under Code section 4999, it must be determined whether the Executive will receive the total Parachute Payments or the Reduced Amount.  The Executive will receive the Reduced Amount if the Reduced Amount results in equal or greater Net After Tax Receipts than the Net After Tax Receipts that would result from the Executive receiving the total Parachute Payments.
    If it is determined that the total Parachute Payments should be reduced to the Reduced Amount, the Company must promptly notify the Executive of that determination, including a copy of the detailed calculations by an accounting firm or other professional organization qualified to make the calculation that was selected by the Company and acceptable to the Executive (the “Accounting Firm”).  The Company shall pay the fees and expenses of the Accounting Firm.  All determinations made by the Accounting Firm under this Section 5 are binding upon the Company and the Executive.

    It is the intention of the Company and the Executive to reduce the Parachute Payments under this Agreement and any other plan, agreement or arrangement only if the aggregate Net After Tax Receipts to the Executive would thereby be increased.  As a result of the uncertainty in the application of Code section 4999 at the time of the initial determination by the Accounting Firm, however, it is possible that amounts will have been paid or distributed to or for the benefit of the Executive which should not have been so paid or distributed (“Overpayment”) or that additional amounts which will not have been paid or distributed to or for the benefit of the Executive should have been so paid or distributed (“Underpayment”), in each case, consistent with the calculation of the Reduced Amount.  If the Accounting Firm, based either upon the 
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assertion of a deficiency by the Internal Revenue Service against the Company or the Executive which the Accounting Firm believes has a high probability of success or controlling precedent or other substantial authority, determines that an Overpayment has been made, any such Overpayment must be treated (if permitted by applicable law) for all purposes as a loan ab initio for which the Executive must repay the Company together with interest at the applicable federal rate under Code section 7872(f)(2); provided, however, that no such loan may be deemed to have been made and no amount shall be payable by the Executive to the Company if and to the extent such deemed loan and payment would not either reduce the amount on which the Executive is subject to tax under Code section 4999 or generate a refund of such taxes.  If the Accounting Firm, based upon controlling precedent or other substantial authority, determines that an Underpayment has occurred, the Accounting Firm must promptly notify the Company of the amount of the Underpayment and such amount, together with interest at the applicable federal rate under Code section 7872(f)(2) must be paid to the Executive.

    If it is determined that the total Parachute Payments should be reduced to the Reduced Amount, then the reduction shall first apply to Parachute Payments that are not subject to Code section 409A (and by first reducing such payments that are not payable in cash and then by reducing cash payments) and thereafter, if necessary, by reducing Parachute Payments that are subject to Code section 409A (and by first reducing such payments that are not payable in cash and then by reducing cash payments).

6.Code Section 409A.  This Agreement and the amounts payable and other benefits provided under this Agreement are intended to comply with, or otherwise be exempt from, Section 409A of the Code (“Section 409A”), after giving effect to the exemptions in Treasury Regulation section 1.409A-1(b)(3) through (b)(12).  This Agreement shall be administered, interpreted and construed in a manner consistent with Section 409A.  If any provision of this Agreement is found not to comply with, or otherwise not be exempt from, the provisions of Section 409A, it shall be modified and given effect, in the sole discretion of the Board and without requiring the Executive’s consent, in such manner as the Board determines to be necessary or appropriate to comply with, or to effectuate an exemption from, Section 409A; provided, however, that in exercising its discretion under this Section 6, the Board shall modify this Agreement in the least restrictive manner necessary.  Each payment under this Agreement shall be treated as a separate identified payment for purposes of Section 409A.
    With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, the Executive, as specified under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following limitations:  (i) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (ii) the reimbursement of an eligible expense shall be made as specified in this Agreement and in no event later than the end of the year after the year in which such expense was incurred and (iii) the right to reimbursement or in-kind benefit shall not be subject to liquidation or exchange for another benefit.

    If a payment obligation under this Agreement arises on account of the Executive’s termination of employment and such payment obligation constitutes “deferred compensation” (as defined under Treasury Regulation section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation section 1.409A-1(b)(3) through (b)(12)), it shall be payable only after the Executive’s Separation from Service; provided, however, that if the Executive is a Specified Employee, any payment that is scheduled to be paid within six months after such Separation from Service shall accrue without interest and shall be paid on the first day of the seventh month beginning after the date of the Executive’s Separation from Service or, if earlier, within fifteen 
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days after the appointment of the personal representative or executor of the Executive’s estate following the Executive’s death.

7.No Employment Rights.  Nothing in this Agreement confers on the Executive any right to continuance of employment or service by the Company or an Affiliate.  Nothing in this Agreement interferes with the right of the Company or an Affiliate to terminate the Executive’s employment or service at any time for any reason, with or without Cause, subject to the requirements of this Agreement.  Nothing in this Agreement restricts the right of the Executive to terminate the Executive’s employment with the Company and its Affiliates at any time, for any reason, with or without Good Reason.  If the Executive is elected or appointed to the Board, the Executive agrees that the Executive will promptly resign from membership on the Board if at any time the Board adopts a resolution that requests the Executive’s resignation from the Board.
8.Governing Law; Venue.  The laws of the State of North Dakota shall govern all matters arising out of or relating to this Agreement including, without limitation, its validity, interpretation, construction and performance but without giving effect to the conflict of laws principles that may require the application of the laws of another jurisdiction.  Any party bringing a legal action or proceeding against any other party arising out of or relating to this Agreement may bring the legal action or proceeding in the United States District Court for the District of North Dakota or in any court of the State of North Dakota sitting in Minot, North Dakota.  Each party waives, to the fullest extent permitted by law (i) any objection it may now or later have to the laying of venue of any legal action or proceeding arising out of or relating to this Agreement brought in a court described in the preceding sentence and (ii) any claim that any legal action or proceeding brought in any such court has been brought in an inconvenient forum.
9.Binding Agreement.  This Agreement shall be binding on and inure to the benefit of, and be enforceable by or against the Company and its successors and the Executive (and the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees).  If the Executive dies while any amount remains payable to the Executive under this Agreement, all such amounts shall be paid in accordance with the terms of this Agreement to the Executive’s devises, legatee or other designee, of if there is none, to the Executive’s estate.
10.No Assignment.  Except as required by applicable law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment, levy or similar process or assignment by operation of law and any attempt to effect any such action shall be null, void and no effect.
11.Entire Agreement.  This Agreement expresses the whole and entire agreement between the parties with reference to the payment of the Severance Benefits and, except for the Secrecy Agreement, supersedes and replaces any prior agreement, understanding or arrangement (whether oral or written) by or between the Company or an Affiliate and the Executive with respect to the Severance Benefits and the Executive’s covenants (other than the Secrecy Agreement).
12.Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together constitute on and the same instrument.
13.Modification of Agreement.  No waiver or modification of this Agreement shall be valid unless in writing and duly executed by the party to be charged therewith.  No evidence of any waiver or modification shall be offered or received in evidence at any proceeding, arbitration or 
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litigation between the parties unless such waiver or modification is in writing, duly authorized and executed.    
14.No Attorneys’ Fees.  Except as provided in Section 3.07(b), the Company and the Executive each shall bear their costs for any attorneys’ fees and any other reasonable expenses incurred in enforcing or protecting the rights of the Company or the Executive under this Agreement.
15.Notices.  All notices, requests and other communications to any party under this Agreement shall be in writing and shall be given to such party at its address set forth below or such other address as such party may hereafter specify for the purpose of notice to the other party:
    If to the Company:    Centerspace
                Attention: General Counsel
                P. O. Box 1988
                3100 10th Street SW
                Minot, North Dakota 58702

                With a copy to:

Chairman of the Board, Centerspace
                c/o Corporate Secretary
                P. O. Box 1988    
                3100 10th Street SW
                Minot, North Dakota 58702

    If to the Executive:    800 LaSalle Ave
                Suite 1600
                Minneapolis, MN  55402

Each notice, request or other communication shall be effective (i) if given by mail, five business days after such communication is deposited in the mails with first class postage prepaid and addressed as set forth above, or (ii) if given by other means, when delivered at the address prescribed by this Section 15.

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    IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date set forth above.

Executive

By:_________________________
Name:  Bhairav Patel
Dated:  ____________

Centerspace

By: _________________________
Name:  Mark O. Decker, Jr.
Title:  CEO
Dated: ____________

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Exhibit A
Form of Waiver and Release Agreement

WAIVER AND RELEASE AGREEMENT

    This Waiver and Release Agreement (the “Agreement”) is made by and between Centerspace, a North Dakota real estate investment trust (the “Company”) and ______________ (the “Executive”).  

    In exchange for the mutual commitments and other consideration contained in this Agreement, the parties agree as follows:

    1.  The Company and the Executive entered into the Change in Control Severance Agreement dated as of __________ (the “Severance Agreement”).  Section 2 of the Severance Agreement provides that the Company will pay valuable severance benefits to the Executive if, as provided in the Severance Agreement, the Executive’s employment with the Company and its Affiliates (which for purposes of this Agreement has the same definition as set forth in the Severance Agreement) is terminated without Cause (as defined in the Severance Agreement) or the Executive resigns with Good Reason (as defined in the Severance Agreement) during the ninety day period before, or the two year period after, a Change in Control (as defined in the Severance Agreement).  The benefits more fully described in the Severance Agreement are referred to as the “Severance Benefits.”

    2.  The Company will pay or provide the Severance Benefits to the Executive in accordance with the terms of the Severance Agreement if, and only if, this Agreement is executed by the parties and becomes binding and irrevocable by the Executive.

    3.  The Executive acknowledges that the Severance Benefits are in exchange for the Executive’s promises in this Agreement and the Severance Agreement and exceed any amounts to which the Executive would be entitled under any law, regulation, contract or any policy or benefit plan of the Company or an Affiliate.  The Executive agrees that except as specifically stated herein, in the Severance Agreement or an employee benefit plan of the Company or an Affiliate in which the Executive participates, the Executive is not entitled to any other compensation or benefits of any amount, form or nature from the Company or its Affiliates.

    4.  The Executive agrees that the Executive will in no way disparage any Released Party (as defined in Section 6 below) to any person or entity, and that at all times the Executive will act in a manner intended and reasonably designed to promote and preserve the goodwill and reputation of each Released Party.  The Executive further agrees to reasonably cooperate with and assist the Company and each Affiliate in any legal dispute or regulatory matter in which the Company or an Affiliate may become involved, including providing information, documents, submitting to depositions, and providing testimony, if requested, related to events which predate this Agreement.

    5.  The Executive reaffirms the Executive’s commitments and obligations under Section 3 of the Severance Agreement.  Executive agrees that the restrictions set forth in Section 3 of the Severance Agreement are fair and reasonable in time, function, customer base and geography and are no greater than necessary to protect the legitimate business interests of the Company and its Affiliates.

    6.  The Executive on behalf of the Executive and the Executive’s heirs, personal representatives and assigns, forever releases the Released Parties from any and all obligations, claims, demands, causes of action, damages, or liabilities of any kind or nature whatsoever 
-1-

(collectively, “Claims”) arising out of the Executive’s employment with the Company and its Affiliates, including the termination of that employment, or arising out of any other event, act or communication occurring prior to the effective date of this Agreement, including all matters and things now known and all matters and things which may hereafter be discovered, if such there be.  The Executive further covenants not to sue, or initiate any other proceeding, including arbitration, with respect to such Claims or causes of action and affirms that the Executive has filed no charges, claims or causes of action of any nature against any Released Party.  This includes but is not limited to Claims under federal, state or local laws prohibiting employment discrimination, including Claims under the Age Discrimination in Employment Act, and any other statutory or regulatory claims of any nature, and any claims or causes of action based on contract, tort or common law.  The Executive further agrees to waive any claim for employment with the Company or an Affiliate, and covenants not to seek employment with the Company or an Affiliate in the future.  Notwithstanding the preceding sentences of this Section 6, this Agreement shall not prevent the Executive from enforcing any rights that the Executive may have with respect to the payment of the Severance Benefits or with respect to the payment of any benefits payable to the Executive as a terminated employee under, and in accordance with, the terms of any “employee benefit plan” (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended).  For purposes of this Agreement, the term “Released Parties” means the Company, its Affiliates, the successors and assigns of the Company or an Affiliate, the past, present and future directors, executive committee members, officers, managers, employees, agents and representatives of the Company or an Affiliate and the employee benefit plans (as defined above) of the Company or an Affiliate and the plan administrators, fiduciaries and agents of each such plan, in their individual and representative capacities.  The term “Released Party” means each of the foregoing persons or entities.

    7.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of North Dakota but without giving effect to the conflict of laws principles that may require the application of the laws of another jurisdiction.  The exclusive venue for the resolution of any disputes relating to this Agreement shall be the United States District Court for the District of North Dakota or any court of the State of North Dakota sitting in the City of Minot, North Dakota.

    8.  It is understood that this Agreement is not to be construed as an admission of liability or the commission of any unlawful act or beach of contractual obligation by either any Released Party or the Executive.  The Executive and the Company agree that they will not attempt to introduce this Agreement or any of its terms as evidence in any legal proceeding, other than a legal proceeding in which one of the parties to this Agreement asserts that the other party has breached the provisions of this Agreement or the Severance Agreement.  If any other circumstance should arise in which one of the parties to this Agreement determines that any of the terms of this Agreement are relevant and necessary to a legal proceeding, the party seeking to use this Agreement or any of its terms shall promptly notify the other so that such other party may protect its interests.

    9.  The Executive acknowledges that the Executive has entered into this Agreement on a knowing and voluntary basis, that the Executive fully understands the terms of this Agreement, and agrees that the terms of this Agreement are binding upon the Executive and the Executive’s heirs, personal representatives and assigns.  The Executive further acknowledges that the Executive has been given the opportunity to take twenty-one days to consider the terms of this Agreement and has had the opportunity to seek and receive the advice of legal counsel regarding the terms of this Agreement.

    10.  The Executive acknowledges that the Executive has seven days to revoke the terms of this Agreement and by executing this Agreement confirms the Executive’s acceptance of those terms.
-2-

    11.  If for any reason this Agreement and the release and waiver set forth herein shall not take effect, if this Agreement is revoked by the Executive during the seven day period following the Executive’s execution of this Agreement, if at any time this Agreement is contested by the Executive, if the Executive should not abide by the restrictive covenants and commitments set forth in Section 3 of the Severance Agreement, or if this Agreement is otherwise breached by the Executive, the Executive shall be obligated to remit to the Company the full amount of the Severance Benefits received by him.

    12.  When either party desires or is required to give notice to the other party pursuant to any term of this Agreement, the notice shall be in writing and: (i) delivered personally or (ii) sent by a nationally recognized overnight delivery service (such as, but not limited to, FedEx), all charges prepaid; or (iii) sent by United States Postal Service certified mail, return receipt requested, postage prepaid.  All notices shall be delivered or sent to the address for each party set forth below or such other address as either party notifies the other in accordance with the terms of this Agreement.  Notices shall be deemed to have been given upon receipt or refusal to accept by the party to which the notice is delivered or sent.

    If to the Company, to ___________________________________________.

    If to the Executive, to ___________________________________________.

    13.  This Agreement may be executed in one or more counterparts, and each counterpart shall, for all purposes, be deemed to be an original, and all such counterparts shall together constitute one and the same instrument.

-3-

    Witness the following signatures this ___ day of ________, 20__

Executive                        Witness:

____________________________            ____________________________
Name:  _____________________            Name:  __________________

Centerspace                Witness:

By:  ________________________            ____________________________
Name:  _____________________
Title:  ______________________

-4-EX-4.1

 Exhibit 4.1 

Sempra Energy 

OFFICERS’ CERTIFICATE 

(Pursuant to Sections 201 and 301 of the Indenture) 

March 24, 2022 
 The undersigned, Bruce E.
MacNeil, Vice President and Treasurer, and Patrick S. Billings, Assistant Treasurer, respectively, of Sempra Energy, a California corporation (the “Company”), hereby certify as follows: 

The undersigned, having read the appropriate provisions of the Indenture dated as of February 23, 2000 (the “Indenture”)
between the Company and U.S. Bank Trust Company, National Association, as successor Trustee to U.S. Bank National Association (the “Trustee”), including Sections 201, 301 and 303 thereof and the definitions in such Indenture
relating thereto, and certain other corporate documents and records, and having made such examination and investigation as, in the opinion of the undersigned, each considers necessary to enable the undersigned to express an informed opinion as to
whether or not the conditions set forth in the Indenture relating to the establishment of the terms of $750,000,000 aggregate principal amount of the Company’s 3.300% Notes due 2025 (the “2025 Notes”) and of $500,000,000
aggregate principal amount of the Company’s 3.700% Notes due 2029 (the “2029 Notes” and, together with the 2025 Notes, the “Notes”) and the form of certificate evidencing the Notes of each series have been
complied with, and whether the conditions in the Indenture relating to the authentication and delivery by the Trustee of the Notes of each series have been complied with, certify that (1) the terms of the Notes of each series were established
by the undersigned pursuant to authority delegated to them by resolutions duly adopted by the Board of Directors of the Company on June 11, 2020 (the “Resolutions”) and such terms are as set forth in and incorporated by
reference into Annex I hereto, (2) the form of certificate evidencing the Notes of each series was established by the undersigned pursuant to authority delegated to them by the Resolutions and shall be in substantially the form attached as
Annex II-A and Annex II-B, as applicable, hereto, (3) a true, complete and correct copy of the Resolutions, which were duly adopted by the Board of Directors
of the Company and are in full force and effect on the date hereof, is attached as an exhibit to the Certificate of the Secretary of the Company of even date herewith, and (4) the form and terms of the Notes of each series have been established
pursuant to Sections 201 and 301 of the Indenture and comply with the Indenture and, in the opinion of the undersigned, all conditions provided for in the Indenture (including, without limitation, those set forth in Sections 201, 301 and
303 of the Indenture) relating to the establishment of the terms of the Notes of each series and the form of certificate evidencing the Notes of each series, and relating to the execution, authentication and delivery of the Notes of each series,
have been complied with. 
 This certificate may be executed by the parties hereto in counterparts, each of which when so executed shall be
deemed to be an original, with the same effect as if the signatures thereto and hereto were on the same instrument, but all such counterparts shall together constitute but one and the same instrument. 

(Signature Page Follows) 

  
 1 

 IN WITNESS WHEREOF, we have hereunto set our hands as of the date first written above. 

 

	
	 /s/ Bruce E. MacNeil

	 Bruce E. MacNeil

	 Vice President and Treasurer

	
	 /s/ Patrick S. Billings

	 Patrick S. Billings

	 Assistant Treasurer

  
 [Officers’
Certificate — Indenture] 

 ANNEX I 

Capitalized terms used in this Annex I and not otherwise defined herein have the same definitions as in the Indenture (as defined in the
Officers’ Certificate of which this Annex I constitutes a part). 
 (1) Two new series of debt securities under the Indenture are
established hereby and shall be known and designated, respectively, as follows: (a) “3.300% Notes due 2025” (the “2025 Notes”) and (b) “3.700% Notes due 2029” (the “2029 Notes”) (hereinafter sometimes referred
to, collectively, as the “Securities” or the “Notes”). 
 (2) The aggregate principal amount of the
Securities of each series which may be authenticated and delivered under the Indenture is limited to $750,000,000 in the case of the 2025 Notes and $500,000,000 in the case of the 2029 Notes, except for Securities of any such series authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the same series pursuant to Sections 304, 305, 306, 906 or 1106 of the Indenture and except for any Securities of any such series which,
pursuant to Section 303 of the Indenture, are deemed never to have been authenticated and delivered under the Indenture. However, each series of Securities may be re-opened by the Company for the issuance
of additional Securities of the same series, so long as any such additional Securities of such series (i) have the same form and terms (other than the offering price, the date of original issuance and, if applicable, the date from which
interest thereon shall begin to accrue and the first interest payment date), and carry the same right to receive accrued and unpaid interest (if any), as the Securities of such series theretofore issued and (ii) shall form a single series under
the Indenture with the Securities of such series theretofore issued; provided that such additional Securities of such series are fungible with the Securities of such series theretofore issued for United States Federal income tax purposes; provided,
however, that, notwithstanding the foregoing, no series of Securities may be re-opened if the Company has effected Defeasance with respect to the Securities of such series pursuant to Section 1302 of the
Indenture or has effected satisfaction and discharge with respect to the Securities of such series pursuant to Section 401 of the Indenture. 

(3) The Securities of each series are to be issued only as registered securities without coupons. The Securities of each series shall be
issued in book-entry form and represented by one or more global Securities (the “Global Securities”) of such series, the initial depositary (the “Depositary”) for the Global Securities of each series shall be The
Depository Trust Company and the depositary arrangements shall be those employed by whoever shall be the Depositary with respect to the Global Securities of such series from time to time. Notwithstanding the foregoing, certificated Securities of any
series in definitive form may be issued in exchange for Global Securities of such series under the circumstances contemplated by Section 305 of the Indenture. 

(4) The Securities of each series shall be sold by the Company to the several underwriters (the “Underwriters”) named in
Schedule I to the Underwriting Agreement dated March 21, 2022 among the Company and BofA Securities, Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC and TD Securities (USA) LLC, as
representatives of the Underwriters (the “Underwriting Agreement”), at a price equal to 99.473% of the principal amount of the 2025 Notes and 99.001% of the principal amount of the 2029 Notes and the initial price to the public of
the Securities shall be 99.823% of the principal amount of the 

  
 Annex I-A-1 

 
2025 Notes and 99.626% of the principal amount of the 2029 Notes (in each case plus accrued and unpaid interest, if any), and underwriting discounts and commissions shall be 0.350% of the
principal amount of the 2025 Notes and 0.625% of the principal amount of the 2029 Notes. 
 (5) The Securities of each series shall not be
repayable or redeemable at the option of the Holders prior to the Stated Maturity of the principal of the Securities of such series (except as provided in Article V of the Indenture) and shall not be subject to a sinking fund or analogous provision.

 (6) The Borough of Manhattan, The City of New York is hereby designated as a Place of Payment for the Securities of each series. 

(7) The Company hereby appoints the Trustee, acting through its Corporate Trust Office in the Borough of Manhattan, The City of New York, as
the Company’s agent for the purposes specified in Section 1002 of the Indenture with respect to the Securities of each series; provided, however, subject to Section 1002 of the Indenture, the Company may at any time remove the Trustee
as its office or agency in the Borough of Manhattan, The City of New York designated for such purposes with respect to the Securities of any series and may from time to time designate one or more other offices or agencies for such purposes with
respect to the Securities of any series and may from time to time rescind such designation, so long as the Company shall at all times maintain an office or agency for such purposes with respect to the Securities of each series in the Borough of
Manhattan, The City of New York. 
 (8) The Securities of each series shall be issued in denominations of $2,000 and integral multiples of
$1,000 in excess thereof. 
 (9) The principal of, premium, if any, and interest on the Securities of each series shall be payable in U.S.
dollars. 
 (10) Section 1303 of the Indenture shall not apply to the Securities of any series. 

(11) The Securities of each series shall not be convertible into or exchangeable for other securities. 

(12) Anything in the Indenture or the Securities of any series to the contrary notwithstanding, payments of the principal of, premium, if any,
and interest on the Global Securities of each series shall be made by wire transfer to the Depositary or its nominee or to any successor depositary or nominee, whichever shall be the registered Holder of such Global Securities of such series from
time to time. 
 (13) To the extent that any provision of the Indenture or the Securities of any series provides for the payment of interest
on overdue principal of, premium, if any, or interest on the Securities of such series, then, to the extent permitted by law, interest on such overdue principal, premium, if any, and interest shall accrue at the rate of interest borne by the
Securities of such series. 
 (14) The Securities of each series shall have such other terms and provisions as are set forth in the form of
certificate evidencing the Securities of such series attached as Annex II-A, in 

  
 Annex I-A-2 

 
the case of the 2025 Notes, or Annex II-B, in the case of the 2029 Notes, to the Officers’ Certificate of which this Annex I constitutes a part, all
of which terms and provisions are incorporated by reference in and made a part of this Annex I as if set forth in full herein. 
 (15)
As used in the Indenture with respect to the Securities of any series and in the certificates evidencing the Securities of such series, all references to “premium” on the Securities of such series shall mean any amounts (other than accrued
interest) payable upon the redemption of any Securities of such series in excess of 100% of the principal amount of such Securities. 
 (16)
The following provisions of the Indenture are hereby amended, provided that such amendments shall only be applicable with respect to the Securities of each series and shall not be applicable with respect to any other series of debt securities issued
under the Indenture: 
  

	 	a.	 clause (4) of Section 501 of the Indenture is hereby amended by replacing “25%” with
“33%”;  

  

	 	b.	 the first paragraph of Section 502 of the Indenture is hereby amended by replacing “25%” with
“33%”; 

  

	 	c.	 clause (2) of Section 507 of the Indenture is hereby amended by replacing “25%” with
“33%”; 

  

	 	d.	 the first sentence of Section 1103 of the Indenture is hereby amended and restated in its entirety to read
in full as follows: “If less than all the Securities of any series are to be redeemed (unless all the Securities of such series and of a specified tenor are to be redeemed or unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not previously called for redemption, by such method as the Trustee shall deem
fair and appropriate or, in the case of any Securities of such series represented by one or more Global Securities of such series registered in the name of a Depositary or its nominee, by such method of selection as may be required or permitted by
the procedures of the Depositary, and which may provide for the selection for redemption of a portion of the principal amount of any Security of such series; provided that the unredeemed portion of the principal amount of any Security shall be in an
authorized denomination (which shall not be less than the minimum authorized denomination) for such Security.”; and 

  

	 	e.	 the first sentence of Section 1104 of the Indenture is hereby amended by replacing “30” with
“10”. 

 (17) Subsection (5) of Section 501 of the Indenture shall not be applicable to the Securities
of any series and, insofar as Section 501 of the Indenture is applicable to the Securities of any series, subsection (5) of Section 501 of the Indenture is hereby deleted in its entirety and replaced with the following text and any
references in the Indenture to subsection (5) of Section 501 thereof shall, insofar as it relates to the Securities of any series, be disregarded, mutatis mutandis: 

  
 Annex I-A-3 

 “(5) [omitted intentionally]; or”. 

  
 Annex I-A-4 

 ANNEX II-A 

Form of Certificate Evidencing the 3.300% Notes due 2025 

  
 Annex II-A-1 

 [For inclusion in Global Securities—] THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

[For inclusion in Global Securities—] UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE CORPORATION (AS
DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 SEMPRA ENERGY 

3.300% Notes due 2025 
  

					
	 No. 00[ • ]
	  		  	 $[ • ]

CUSIP No. 816851 BN8
 ISIN No.
US816851BN84

 Sempra Energy, a corporation duly organized and existing under the laws of the State of California (herein
called the “Corporation,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to ____________________, or registered assigns, the principal sum of
____________________ Dollars ($____________________) on April 1, 2025 (the “Maturity Date”), and to pay interest thereon from March 24, 2022 or from the most recent date to which interest has been paid or duly provided
for, semi-annually in arrears on April 1 and October 1 in each year (each, an “Interest Payment Date”), beginning on October 1, 2022, and on the Maturity Date at the rate of 3.300% per annum, until the principal
hereof is paid or made available for payment, provided that any principal hereof or (to the extent that the payment of such interest shall be legally enforceable) premium, if any, or interest hereon which is not paid when due shall bear interest at
the rate of 3.300% per annum from the respective dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand. 

Interest on this Security shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the March 15 or September 15 (whether or not a Business Day), as the case may be, immediately preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided for on any Interest Payment Date will forthwith cease to be payable to the Holder on such Regular Record Date by virtue of having been such Holder and may either be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of
this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Corporation
maintained for that purpose in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the
option of the Corporation payment of interest may be made by check 

  
 Annex II-A-2 

 
mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or by wire transfer at such place and to such account at a banking institution in the
United States as may be designated in writing to the Trustee at least 15 days prior to the date for payment by the Person entitled thereto. Notwithstanding the foregoing, so long as the Holder of this Security is the Depositary or its nominee,
payment of the principal of (and premium, if any) and interest on this Security will be made by wire transfer of immediately available funds. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

[Signature Page Follows] 

  
 Annex II-A-3 

 IN WITNESS WHEREOF, the Corporation has caused this instrument to be duly executed. 

 

			
	SEMPRA ENERGY
		
	By:	 	 
	Name:	 	
	Title:	 	

  

			
	Attest:
		
	By:	 	 
	Name:	 	
	Title:	 	

 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

  

			
	 U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION

As successor Trustee to
 U.S. Bank National
Association

		
	By:	 	 
		 	Authorized Signatory

 Dated: 

  
 Annex II-A-4 

 (REVERSE OF SECURITY) 

This Security is one of a duly authorized issue of securities of the Corporation (herein called the “Securities”), issued and
to be issued in one or more series under an Indenture, dated as of February 23, 2000 (herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Corporation and U.S. Bank
Trust Company, National Association, as successor trustee to U.S. Bank National Association (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture
for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Corporation, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof and is sometimes referred to as “this Security”. 

Prior to March 1, 2025 (the “Par Call Date”), the Corporation may redeem the Securities of this series at its option, in
whole or in part, at any time and from time to time, at a Redemption Price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: 

(1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the Redemption Date
(assuming the Securities of this series matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 20 basis points less (b) interest accrued to the date of redemption, and 
 (2) 100% of the principal amount of the Securities
of this series to be redeemed, 
 plus, in either case, accrued and unpaid interest thereon to the Redemption Date. 

On and after the Par Call Date, the Corporation may redeem the Securities of this series at its option, in whole or in part, at any time and
from time to time, at a Redemption Price equal to 100% of the principal amount of the Securities of this series being redeemed plus accrued and unpaid interest thereon to the Redemption Date. 

Notwithstanding the foregoing, installments of interest on the Securities of this series that are due and payable on any Interest Payment Date
falling on or prior to a Redemption Date will be payable on that Interest Payment Date to the Holders thereof as of the close of business on the Regular Record Date immediately preceding such Interest Payment Date, according to the terms of the
Securities of this series and the Indenture. 
 Notice of any redemption will be mailed at least 10 days but not more than 60 days
before the Redemption Date to each Holder of the Securities of this series to be redeemed. Once notice of redemption is mailed, the Securities of this series called for redemption will become due and payable on the Redemption Date at the applicable
Redemption Price, plus accrued and unpaid interest to the Redemption Date. If the Corporation elects to redeem all or a portion of the Securities of this series, the redemption will not be conditional upon receipt by any Paying Agent or the Trustee
of monies sufficient to pay the Redemption Price. 
 Unless the Corporation defaults in the payment of the Redemption Price of any
Securities of this series or portions thereof called for redemption, on and after the Redemption Date interest will cease to accrue on the Securities of this series or portions thereof called for redemption. The Corporation will pay the Redemption
Price and any accrued interest on the Securities of this series (or portions thereof) called for redemption upon surrender thereof for redemption. In the event of redemption of this Security in part only, a new Security or Securities of this series
and of like tenor in an aggregate principal amount equal to the unredeemed portion of the principal hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 

If less than all of the Outstanding Securities of this series are to be redeemed on any Redemption Date, the particular Securities of this
series (or portions thereof) to be redeemed shall be selected by the Trustee by such method as the Trustee shall deem fair and appropriate or, in the case of Securities of this series represented by one or more Global Securities of this series
registered in the name of a Depositary or its nominee, by such method of selection as may be required or permitted by the procedures of the Depositary. In the case of any Security of this series redeemed in part, the principal amount redeemed must
be an integral multiple of $1,000 and the remaining principal amount of such Security of this series must be an authorized denomination. 

  
 Annex II-A-5 

 “Treasury Rate” means, with respect to any Redemption Date, the yield
determined by the Corporation in accordance with the following two paragraphs. 
 The Treasury Rate shall be determined by the Corporation
after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third business day (as defined below) preceding the Redemption
Date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates
(Daily)—H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading)
(“H.15 TCM”). In determining the Treasury Rate, the Corporation shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the Par Call Date
(the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately
shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Par Call Date on a straight-line basis (using the actual number of days) using such
yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the
Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant
maturity from the Redemption Date. As used in this paragraph and the immediately succeeding paragraph, the term “business day” means any day (other than a Saturday or Sunday) on which banking institutions in The City of
New York are not authorized or obligated by law or executive order to remain closed. 
 If on the third business day preceding the
Redemption Date H.15 TCM is no longer published, the Corporation shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day
preceding such Redemption Date of the United States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are
two or more United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, the Corporation shall select
the United States Treasury security with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of
the preceding sentence, the Corporation shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United
States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based
upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. 

The Corporation’s actions and determinations in determining the Redemption Price shall be conclusive and binding for all purposes, absent
manifest error. The Corporation will notify the Trustee of the Redemption Price promptly after the calculation thereof and the Trustee shall have no duty or obligation with respect to the calculation of the Redemption Price. 

The Indenture contains provisions for Defeasance at any time of the entire indebtedness of the Securities of this series upon compliance with
certain conditions set forth in the Indenture. 
 If an Event of Default with respect to the Securities of this series shall occur and be
continuing, the principal of and accrued and unpaid interest, if any, on the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Corporation and the rights of the Holders of the Securities of each series affected under the Indenture at any time by the Corporation and the Trustee with the consent of the Holders of 

  
 Annex II-A-6 

 
a majority in principal amount of the Securities of each series at the time Outstanding affected thereby. The Indenture contains provisions permitting the Holders of not less than a majority in
principal amount of the Securities of any series at the time Outstanding with respect to which a default under the Indenture shall have occurred and be continuing, on behalf of the Holders of all Securities of such series, to waive, with certain
exceptions, such past default with respect to such series and its consequences. The Indenture also permits the Holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Corporation with certain provisions of the Indenture. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders
of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 33% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default
as Trustee, such Holder or Holders shall have offered the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request, the Trustee, for 60 days after its receipt of such notice, request and
offer of indemnity, has failed to institute any such proceeding, and no direction inconsistent with such written request has been given to the Trustee during such 60 day period by the Holders of a majority in principal amount of the Outstanding
Securities of this series. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed
herein. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation
of the Corporation, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the
Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Corporation in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Corporation and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this
series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000
in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of
transfer or exchange, but the Corporation may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith, subject to certain exceptions set forth in the Indenture. 

Prior to due presentment of this Security for registration of transfer, the Corporation, the Trustee and any agent of the Corporation or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Corporation, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 This Security shall be governed by and construed in accordance with the laws of the State of New York, without regard to
conflict of law principles thereof. 
 All terms used in this Security which are defined in the Indenture and not defined herein shall have
the meanings assigned to them in the Indenture. 

  
 Annex II-A-7 

 ANNEX II-B 

Form of Certificate Evidencing the 3.700% Notes due 2029 

  
 Annex II-B-1 

 [For inclusion in Global Securities—] THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

[For inclusion in Global Securities—] UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE CORPORATION (AS
DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 SEMPRA ENERGY 

3.700% Notes due 2029 
  

			
		  	 $[ • ]

	 No. 00[ • ]
	  	 CUSIP No. 816851 BP3

		  	 ISIN No. US816851BP33

 Sempra Energy, a corporation duly organized and existing under the laws of the State of California (herein
called the “Corporation,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to ____________________, or registered assigns, the principal sum of
____________________ Dollars ($____________________) on April 1, 2029 (the “Maturity Date”), and to pay interest thereon from March 24, 2022 or from the most recent date to which interest has been paid or duly provided
for, semi-annually in arrears on April 1 and October 1 in each year (each, an “Interest Payment Date”), beginning on October 1, 2022, and on the Maturity Date at the rate of 3.700% per annum, until the principal
hereof is paid or made available for payment, provided that any principal hereof or (to the extent that the payment of such interest shall be legally enforceable) premium, if any, or interest hereon which is not paid when due shall bear interest at
the rate of 3.700% per annum from the respective dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand. 

Interest on this Security shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the March 15 or September 15 (whether or not a Business Day), as the case may be, immediately preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided for on any Interest Payment Date will forthwith cease to be payable to the Holder on such Regular Record Date by virtue of having been such Holder and may either be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of
this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Corporation
maintained for that purpose in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the
option of the Corporation payment of interest may be made by check 

  
 Annex II-B-2 

 
mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or by wire transfer at such place and to such account at a banking institution in the
United States as may be designated in writing to the Trustee at least 15 days prior to the date for payment by the Person entitled thereto. Notwithstanding the foregoing, so long as the Holder of this Security is the Depositary or its nominee,
payment of the principal of (and premium, if any) and interest on this Security will be made by wire transfer of immediately available funds. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

[Signature Page Follows] 

  
 Annex II-B-3 

 IN WITNESS WHEREOF, the Corporation has caused this instrument to be duly executed. 

 

			
	SEMPRA ENERGY
		
	By:	 	 
	Name:	 	
	Title:	 	

  

			
	Attest:
		
	By:	 	 
	Name:	 	
	Title:	 	

 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

  

			
	U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION
	As successor Trustee to
	U.S. Bank National Association
		
	By:	 	 
		 	Authorized Signatory

 Dated: 

  
 Annex II-B-4 

 (REVERSE OF SECURITY) 

This Security is one of a duly authorized issue of securities of the Corporation (herein called the “Securities”), issued and
to be issued in one or more series under an Indenture, dated as of February 23, 2000 (herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Corporation and U.S. Bank
Trust Company, National Association, as successor trustee to U.S. Bank National Association (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture
for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Corporation, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof and is sometimes referred to as “this Security”. 

Prior to February 1, 2029 (the “Par Call Date”), the Corporation may redeem the Securities of this series at its option,
in whole or in part, at any time and from time to time, at a Redemption Price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: 

(1) (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the Redemption Date
(assuming the Securities of this series matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 25 basis points less (b) interest accrued to the date of redemption, and 
 (2) 100% of the principal amount of the Securities
of this series to be redeemed, 
 plus, in either case, accrued and unpaid interest thereon to the Redemption Date. 

On and after the Par Call Date, the Corporation may redeem the Securities of this series at its option, in whole or in part, at any time and
from time to time, at a Redemption Price equal to 100% of the principal amount of the Securities of this series being redeemed plus accrued and unpaid interest thereon to the Redemption Date. 

Notwithstanding the foregoing, installments of interest on the Securities of this series that are due and payable on any Interest Payment Date
falling on or prior to a Redemption Date will be payable on that Interest Payment Date to the Holders thereof as of the close of business on the Regular Record Date immediately preceding such Interest Payment Date, according to the terms of the
Securities of this series and the Indenture. 
 Notice of any redemption will be mailed at least 10 days but not more than 60 days
before the Redemption Date to each Holder of the Securities of this series to be redeemed. Once notice of redemption is mailed, the Securities of this series called for redemption will become due and payable on the Redemption Date at the applicable
Redemption Price, plus accrued and unpaid interest to the Redemption Date. If the Corporation elects to redeem all or a portion of the Securities of this series, the redemption will not be conditional upon receipt by any Paying Agent or the Trustee
of monies sufficient to pay the Redemption Price. 
 Unless the Corporation defaults in the payment of the Redemption Price of any
Securities of this series or portions thereof called for redemption, on and after the Redemption Date interest will cease to accrue on the Securities of this series or portions thereof called for redemption. The Corporation will pay the Redemption
Price and any accrued interest on the Securities of this series (or portions thereof) called for redemption upon surrender thereof for redemption. In the event of redemption of this Security in part only, a new Security or Securities of this series
and of like tenor in an aggregate principal amount equal to the unredeemed portion of the principal hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 

If less than all of the Outstanding Securities of this series are to be redeemed on any Redemption Date, the particular Securities of this
series (or portions thereof) to be redeemed shall be selected by the Trustee by such method as the Trustee shall deem fair and appropriate or, in the case of Securities of this series represented by one or more Global Securities of this series
registered in the name of a Depositary or its nominee, by such method of selection as may be required or permitted by the procedures of the Depositary. In the case of any Security of this series redeemed in part, the principal amount redeemed must
be an integral multiple of $1,000 and the remaining principal amount of such Security of this series must be an authorized denomination. 

  
 Annex II-B-5 

 “Treasury Rate” means, with respect to any Redemption Date, the yield
determined by the Corporation in accordance with the following two paragraphs. 
 The Treasury Rate shall be determined by the Corporation
after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third business day (as defined below) preceding the Redemption
Date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates
(Daily)—H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading)
(“H.15 TCM”). In determining the Treasury Rate, the Corporation shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the Redemption Date to the Par Call Date
(the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately
shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Par Call Date on a straight-line basis (using the actual number of days) using such
yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the
Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant
maturity from the Redemption Date. As used in this paragraph and the immediately succeeding paragraph, the term “business day” means any day (other than a Saturday or Sunday) on which banking institutions in The City of
New York are not authorized or obligated by law or executive order to remain closed. 
 If on the third business day preceding the
Redemption Date H.15 TCM is no longer published, the Corporation shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day
preceding such Redemption Date of the United States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are
two or more United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, the Corporation shall select
the United States Treasury security with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of
the preceding sentence, the Corporation shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United
States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based
upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. 

The Corporation’s actions and determinations in determining the Redemption Price shall be conclusive and binding for all purposes, absent
manifest error. The Corporation will notify the Trustee of the Redemption Price promptly after the calculation thereof and the Trustee shall have no duty or obligation with respect to the calculation of the Redemption Price. 

The Indenture contains provisions for Defeasance at any time of the entire indebtedness of the Securities of this series upon compliance with
certain conditions set forth in the Indenture. 
 If an Event of Default with respect to the Securities of this series shall occur and be
continuing, the principal of and accrued and unpaid interest, if any, on the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Corporation and the rights of the Holders of the Securities of each series affected under the Indenture at any time by the Corporation and the Trustee with the consent of the Holders of 

  
 Annex II-B-6 

 
a majority in principal amount of the Securities of each series at the time Outstanding affected thereby. The Indenture contains provisions permitting the Holders of not less than a majority in
principal amount of the Securities of any series at the time Outstanding with respect to which a default under the Indenture shall have occurred and be continuing, on behalf of the Holders of all Securities of such series, to waive, with certain
exceptions, such past default with respect to such series and its consequences. The Indenture also permits the Holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Corporation with certain provisions of the Indenture. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders
of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 33% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default
as Trustee, such Holder or Holders shall have offered the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request, the Trustee, for 60 days after its receipt of such notice, request and
offer of indemnity, has failed to institute any such proceeding, and no direction inconsistent with such written request has been given to the Trustee during such 60 day period by the Holders of a majority in principal amount of the Outstanding
Securities of this series. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed
herein. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation
of the Corporation, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the
Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Corporation in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Corporation and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this
series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000
in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of
transfer or exchange, but the Corporation may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith, subject to certain exceptions set forth in the Indenture. 

Prior to due presentment of this Security for registration of transfer, the Corporation, the Trustee and any agent of the Corporation or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Corporation, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 This Security shall be governed by and construed in accordance with the laws of the State of New York, without regard to
conflict of law principles thereof. 
 All terms used in this Security which are defined in the Indenture and not defined herein shall have
the meanings assigned to them in the Indenture. 

  
 Annex II-B-7

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