Document:

Exhibit 10.19

  

  

  CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE CASTLE BIOSCIENCES, INC. HAS
    DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO CASTLE BIOSCIENCES, INC. IF PUBLICLY DISCLOSED.

   

  

  FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

   

  

  THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of June 13, 2019 (the “First Amendment Date”), by and among OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314, as collateral agent (in its individual
    capacity, “Oxford”; and in its capacity as collateral agent, “Collateral Agent”), the Lenders listed on Schedule 1.1 of the Loan Agreement (as defined below) or
    otherwise party thereto from time to time including Oxford in its capacity as a Lender and SILICON VALLEY BANK, a California corporation with an office located at 3003 Tasman Drive, Santa Clara, CA 95054 (“Bank”
    or “SVB”) (each a “Lender” and collectively, the “Lenders”), and CASTLE BIOSCIENCES, INC., a Delaware Corporation with offices
    located at 820 S. Friendswood, Suite 201, Friendswood, TX 77546 (“Borrower”).

   

  

  WHEREAS, Collateral Agent, Borrower and the Lenders party to the Loan Agreement from time to time have entered into that certain Loan and Security
    Agreement, dated as of November 30, 2018 (as amended, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which the Lenders have provided to Borrower certain loans in
    accordance with the terms and conditions thereof; and

   

  

  WHEREAS, Borrower, the Lenders and Collateral Agent desire to amend certain provisions of the Loan Agreement, but only to the extent, in accordance with
    the terms, subject to the conditions and in reliance upon the representations and warranties set forth below;

   

  

  NOW, THEREFORE, in consideration of the promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and
    adequacy of which are hereby acknowledged, Borrower, the Lenders and Collateral Agent hereby agree as follows:

  

  
    
      	 	
              1.

            	
              Capitalized terms used herein but not otherwise defined shall have the respective meanings given to them in the Loan Agreement.

            

    

  

  

  
    	 	
            2.

          	
            Borrower hereby reaffirms the security interest granted by Borrower previously in Section 4.1 of the Loan Agreement with respect to the Collateral.

          

     

    

  

  
    	 	
            3.

          	
            Section 2.2(a) of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “(a)          Availability.  (i) Subject to the
      terms and conditions of this Agreement, the Lenders agree, severally and not jointly, to make term loans to Borrower on the Effective Date in an aggregate amount of Twenty Million Dollars ($20,000,000) according to each Lender’s Initial Term  Loan
      Commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Initial Term Loan”, and collectively as the “Initial Term Loans”). 

      After repayment, no Initial Term Loan may be re‐borrowed.

   

    

  (ii)          Subject to the terms and conditions of
      this Agreement, the Lenders agree, severally and not jointly, on June 13, 2019, to make term loans to Borrower in an aggregate amount up to Five Million Dollars ($5,000,000) according to each Lender’s Term B Loan Commitment as set forth on Schedule 1.1
      hereto (such term loans are hereinafter referred to singly as a “Term B Loan”, and collectively as the “Term B Loans”; each Initial Term Loan or Term B Loan is
      hereinafter referred to singly as a “Term Loan” and the Initial Term Loans and the Term B Loans are hereinafter referred to collectively as the “Term Loans”).  After repayment, no Term B Loan may be re‐borrowed.”

   

    

  
    	 	
            4.

          	
            Section 2.3 of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “2.3          Reserved.”

   

    

  
    	 	
            5.

          	
            Section 2.4(a) of the Loan Agreement is hereby amended and restated as follows:

          

  

  

  

  “(a)          Interest Rate.  Subject to Section 2.4(b), the
      principal amount of the outstanding Credit Extensions shall accrue interest at a floating per annum rate equal to the Basic Rate, determined by Collateral Agent on the Funding Date of the applicable Credit Extension and thereafter, which interest
      shall be payable monthly in arrears in accordance with Sections 2.2(b), 2.3(b) and 2.4(e). 

  
    1

    
      

  

   Interest shall accrue on each Credit Extension commencing on, and including, the Funding Date of such Credit Extension, and shall
      accrue on the principal amount outstanding under such Credit Extension through and including the day on which such Credit Extension is paid in full.”

   

    

  
    	 	
            6.

          	
            Section 2.5 of the Loan Agreement is hereby amended and restated as follows:

          

  

  

  

  “2.5          Secured Promissory Notes.  The Term Loans shall be evidenced by Secured Promissory Notes in the form attached as Exhibit D hereto (each a “Secured Promissory Note”), and shall be repayable as set forth in this Agreement.  Borrower irrevocably authorizes each Lender to make or cause to be made, on or about the Funding Date of any Credit Extension or at
      the time of receipt of any payment of principal on such Lender’s Secured Promissory Note, an appropriate notation on such Lender’s Secured Promissory Note Record reflecting the making of such Term Loan or (as the case may be) the receipt of such
      payment.  The outstanding amount of each Term Loan set forth on such Lender’s Secured Promissory Note Record shall be prima facie evidence of the principal amount thereof owing and unpaid to such Lender, but the failure to record, or any error in so
      recording, any such amount on such Lender’s Secured Promissory Note Record shall not limit or otherwise affect the obligations of Borrower under any Secured Promissory Note or any other Loan Document to make payments of principal of or interest on
      any Secured Promissory Note when due.  Upon receipt of an affidavit of an officer of a Lender as to the loss, theft, destruction, or mutilation of its Secured Promissory Note, Borrower shall issue, in lieu
      thereof, a replacement Secured Promissory Note in the same principal amount thereof and of like tenor.”

   

    

  
    	 	
            7.

          	
            Sections 2.6(c) and 2.6(d) of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “(c)          Reserved.”

   

    

  “(d)          Reserved.”

   

    

  
    	 	
            8.

          	
            Section 3.1(c) of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “(c)          duly executed original Secured Promissory
      Notes in favor of each Lender according to its Term Loan Commitment Percentage;”

   

    

  
    	 	
            9.

          	
            Sections 3.2(d) and 3.2(e) of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “(d)          Reserved.”

   

    

  “(e)          Reserved.”

   
   

    

  
    	 	
            10.

          	
            Section 3.2(f) of the Loan Agreement is hereby amended and restated as follows: 

          

  

   
   

    

  “(f)          to the extent not delivered at the
      Effective Date, duly executed original Secured Promissory Notes and Warrants, in number, form and content acceptable to each Lender, and in favor of each Lender according to its Term Loan Commitment Percentage, as applicable, with respect to each
      Credit Extension made by such Lender after the Effective Date; and”

   

    

  
    	 	
            11.

          	
            Section 3.4(b) of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “(b)          Reserved.”

   

    

  
    	 	
            12.

          	
            Section 5.9 of the Loan Agreement is hereby amended and restated as follows:

          

  

  

  

  “5.9          Use of Proceeds.  Borrower shall use the proceeds of the Credit Extensions solely as working capital and to fund its general business requirements in accordance with the
      provisions of this Agreement, and not for personal, family, household or agricultural purposes. 

  
    2

    
      

  

  A portion of the proceeds of the Term Loans shall be used by Borrower to repay the Existing Indebtedness in full on the Effective
      Date.  A portion of the proceeds of the Term B Loans shall be used by Borrower to repay all outstanding revolving advance in full on June 13, 2019.”

   

    

  
    	 	
            13.

          	
            Section 5.10 of the Loan Agreement is hereby amended and restated as follows:

          

  

  

  

  “5.10          Reserved.”

   

    

  
    	
            

            

          	
            14.

          	
            Sections 6.2(a)(ix) and 6.2(a)(x) of the Loan Agreement is hereby amended and restated as follows:

          

  

  

  

  “(ix)          within thirty (30) days after the end of
      each month aged listings of accounts receivable and accounts payable (by invoice date);”

   

    

  “(x)          Reserved.”

  

  

  
    	 	
            15.

          	
            Section 6.10 of the Loan Agreement is hereby amended and restated as follows:

          

  

  

  

  “6.10          Financial Covenant. Borrower shall achieve the following, to be tested as of the last day of the applicable month, on a consolidated basis with respect to
      Borrower and its Subsidiaries:

   

    

  (i)          Revenues for the three months ended at the end of the applicable month set forth
      below of at least:

   

    

  	
          Trailing 3-Month Period Ending

        	
          Minimum Trailing 3 Months 

          Revenue ([***]% of Plan)

        
	
          4/30/2019

        	
          $[***]

        
	
          5/31/2019

        	
          $[***]

        
	
          6/30/2019

        	
          $[***]

        
	
          7/31/2019

        	
          $[***]

        
	
          8/31/2019

        	
          $[***]

        
	
          9/30/2019

        	
          $[***]

        
	
          10/31/2019

        	
          $[***]

        
	
          11/30/2019

        	
          $[***]

        
	
          12/31/2019

        	
          $[***]

        

  

  

  , and thereafter, the required revenues of Borrower shall be determined by Collateral Agent and the Lenders upon receipt and
      review by Collateral Agent and the Lenders of Borrower’s Annual Projections delivered in accordance with Section 6.2(a)(iii); provided that such required revenues shall be (i) based on a minimum requirement of at least [***] percent ([***]%)
    of Borrower’s board of directors-approved revenue plan (provided that such plan is acceptable to Collateral Agent and the Lenders), (ii) in no event less than the amounts required hereunder with respect to the [***], and (iii) at such levels that [***].  Collateral Agent, Borrower and the Lenders shall execute and deliver to each other an amendment to this Agreement which provides the terms of such
      Future Minimum Revenue Covenants no later than the earlier of (i) ten (10) days after Borrower’s receives such amendment from Bank, and (ii) February 28th of each year. It shall be an immediate Event of Default if Borrower, Collateral Agent and the
      Lenders (in each case acting reasonably) fail to enter into the aforementioned amendment on or prior to February 28th of each year.

   

  

  GAAP revenue recognized from consolidated DecisionDx-CM Medicare claims in which a payment decision was awarded through an Administrative Law Judge appeal
    process shall not be part of GAAP revenue as measured by this performance-to-plan revenue covenant.”

   

  

  
    
      	 	
              16.

            	
              Section 6.14(b) of the Loan Agreement is hereby amended and restated as follows:

            

    

  

   

  

  
    [***]=Certain Confidential Information Omitted

  

  
    3

    
      

  

  “(b)          Disputes.  Borrower shall promptly
      notify Collateral Agent and each Lender of all disputes or claims relating to Accounts in excess of [***] Dollars ($[***]).  Borrower may forgive (completely or partially), compromise, or settle any Account for less than payment in full, or agree to
      do any of the foregoing so long as (i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course of business, in arm’s-length transactions, and reports the same to Collateral Agent, with a copy to Lenders, in the
      Compliance Certificate; and (ii) no Event of Default has occurred and is continuing.”

   

    

  
    	 	
            17.

          	
            Section 6.14(c) of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “(c)          Reserved.”

   

    

  
    	 	
            18.

          	
            Section 6.15 of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “6.15          Remittance of Proceeds.  Deliver, in kind, all proceeds arising from the disposition of any Collateral to Collateral Agent, for the ratable benefit of the
      Lenders with respect to the Term Loan, in the original form in which received by Borrower not later than [***] ([***]) Business Days after receipt by Borrower, to be applied to the Obligations, (a) prior to an Event of Default, pursuant to the terms
      of Section 2.4(e) hereof, and (b) after the occurrence and during the continuance of an Event of Default, pursuant to the terms of Section 9.4 hereof; provided that, if no Event of Default has occurred and is continuing, and other than pursuant to
      any transaction permitted under Section 7.1, Borrower shall not be obligated to remit to Collateral Agent the proceeds of the sale of worn out or obsolete Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate
      purchase price of [***] Dollars ($[***]) or less (for all such transactions in any fiscal year).  Borrower agrees that it will not commingle proceeds of the dispositions of the Collateral with any of Borrower’s other funds or property, but will hold
      such proceeds separate and apart from such other funds and property and in an express trust for Collateral Agent.  Nothing in this Section limits the restrictions on disposition of Collateral set forth elsewhere in this Agreement.”

   

    

  
    	 	
            19.

          	
            Section 8.1 of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “8.1          Payment Default.  Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations
      within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day grace period shall not apply to payments due on the Maturity Date or the date of acceleration pursuant to Section 9.1 (a) hereof).  During the
      cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period);”

  

  
    	 	
            20.

          	
            Section 9.4 of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “9.4          Application of Payments and Proceeds.  Notwithstanding anything to the contrary contained in this Agreement, upon the occurrence and during the continuance
      of an Event of Default, (a) Borrower irrevocably waives the right to direct the application of any and all payments at any time or times thereafter received by Collateral Agent from or on behalf of Borrower or any of its Subsidiaries of all or any
      part of the Obligations, and, as between Borrower on the one hand and Collateral Agent and Lenders on the other, Collateral Agent shall have the continuing and exclusive right to apply and to reapply any and all payments received against the
      Obligations in such manner as Collateral Agent may deem advisable notwithstanding any previous application by Collateral Agent, and (b) the proceeds of any sale of, or other realization upon all or any part of the Collateral shall be applied: first,
      to the Lenders’ Expenses; second, to accrued and unpaid interest on the Obligations (including any interest which, but for the provisions of the United States Bankruptcy Code, would have accrued on such amounts); third, to the principal amount of the
      Obligations; and fourth, to any other indebtedness or obligations of Borrower owing to Collateral Agent or any Lender under the Loan Documents.  Any balance remaining shall be delivered to Borrower or to whoever may be lawfully entitled to receive
      such balance or as a court of competent jurisdiction may direct.  In carrying out the foregoing, (x) amounts received shall be applied in the numerical order provided until exhausted prior to the application to the next succeeding category, and (y)
      each of the Persons entitled to receive a payment in any particular category shall receive an amount equal to its pro rata share of amounts available to be applied pursuant thereto for such category.  

    

   

    

  [***]=Certain Confidential Information Omitted 

  
    4

    
      

  

  
     Any reference in this Agreement to an allocation between or sharing by the Lenders of any right, interest or obligation “ratably,” “proportionally” or
        in similar terms shall refer to Pro Rata Share unless expressly provided otherwise.  Collateral Agent, or if applicable, each Lender, shall promptly remit to the other Lenders such sums as may be necessary to ensure the ratable repayment of each
        Lender’s portion of any Term Loan and the ratable distribution of interest, fees and reimbursements paid or made by Borrower.  Notwithstanding the foregoing, a Lender receiving a scheduled payment shall not be responsible for determining whether
        the other Lenders also received their scheduled payment on such date; provided, however, if it is later determined that a Lender received more than its ratable share of scheduled payments made on any date or dates, then such Lender shall remit to
        Collateral Agent or other Lenders such sums as may be necessary to ensure the ratable payment of such scheduled payments, as instructed by Collateral Agent.  If any payment or distribution of any kind or character, whether in cash, properties or
        securities, shall be received by a Lender in excess of its ratable share, then the portion of such payment or distribution in excess of such Lender’s ratable share shall be received by such Lender in trust for and shall be promptly paid over to the
        other Lender for application to the payments of amounts due on the other Lenders’ claims.  To the extent any payment for the account of Borrower is required to be returned as a voidable transfer or otherwise, the Lenders shall contribute to one
        another as is necessary to ensure that such return of payment is on a pro rata basis.  If any Lender shall obtain possession of any Collateral, it shall hold such Collateral for itself and as agent and bailee for Collateral Agent and other Lenders
        for purposes of perfecting Collateral Agent’s security interest therein.”

     

    

    	
             

          	
            21.

          	
            Section 12.6(a)(i) of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “(i)          no such amendment, waiver or other
      modification that would have the effect of increasing or reducing a Lender’s Term Loan Commitment or Term Loan Commitment Percentage shall be effective as to such Lender without such Lender’s written consent;”

   

    

  
    	 	
            22.

          	
            Section 12.6(a)(iii) of the Loan Agreement is hereby amended and restated as follows:

          

  

   

    

  “(iii)          no such amendment, waiver or other
      modification shall, unless signed by all the Lenders directly affected thereby, (A) reduce the principal of, rate of interest on or any fees with respect to any Term Loan or forgive any principal, interest (other than default interest) or fees (other
      than late charges) with respect to any Term Loan; (B) postpone the date fixed for, or waive, any payment of principal of any Term Loan or of interest on any Term Loan (other than default interest) or any fees provided for hereunder (other than late
      charges or for any termination of any commitment); (C) change the definition of the term “Required Lenders” or the percentage of Lenders which shall be required for the Lenders to take any action hereunder; (D)
      release all or substantially all of any material portion of the Collateral, authorize Borrower to sell or otherwise dispose of all or substantially all or any material portion of the Collateral or release any Guarantor of all or any portion of the
      Obligations or its guaranty obligations with respect thereto, except, in each case with respect to this clause (D), as otherwise may be expressly permitted under this Agreement or the other Loan Documents (including in connection with any disposition
      permitted hereunder); (E) amend, waive or otherwise modify this Section 12.6 or the definitions of the terms used in this Section 12.6 insofar as the definitions affect the substance of this Section 12.6; (F) consent to the assignment, delegation or
      other transfer by Borrower of any of its rights and obligations under any Loan Document or release Borrower of its payment obligations under any Loan Document, except, in each case with respect to this clause (F), pursuant to a merger or
      consolidation permitted pursuant to this Agreement; (G) amend any of the provisions of Section 9.4 or amend any of the definitions of Pro Rata Share, Term Loan Commitment or Term Loan Commitment Percentage or that provide for the Lenders to receive
      their Pro Rata Shares of any fees, payments, setoffs or proceeds of Collateral hereunder; (H) subordinate the Liens granted in favor of Collateral Agent securing the Obligations; or (I) amend any of the provisions of Section 12.10.  It is hereby
      understood and agreed that all Lenders shall be deemed directly affected by an amendment, waiver or other modification of the type described in the preceding clauses (C), (D), (E), (F), (G) and (H) of the preceding sentence;”

   

  
    
      	 	
              23.

            	
              Section 12.12 of the Loan Agreement is hereby amended and restated as follows:

            

    

  

  
    5

    
      

  

  

  “12.12          Cooperation of Borrower.  If necessary, Borrower agrees to (i) execute any documents (including new Secured Promissory Notes) reasonably required to
      effectuate and acknowledge each assignment of a Term Loan Commitment or Credit Extension to an assignee in accordance with Section 12.1, (ii) make Borrower’s management available to meet with Collateral Agent and prospective participants and
      assignees of Term Loan Commitments or Credit Extensions (which meetings shall be conducted no more often than twice every twelve months unless an Event of Default has occurred and is continuing), and (iii) assist Collateral Agent or the Lenders in
      the preparation of information relating to the financial affairs of Borrower as any prospective participant or assignee of a Term Loan Commitment or Credit Extensions reasonably may request.  Subject to the provisions of Section 12.9, Borrower
      authorizes each Lender to disclose to any prospective participant or assignee of a Term Loan Commitment, any and all information in such Lender’s possession concerning Borrower and its financial affairs which has been delivered to such Lender by or
      on behalf of Borrower pursuant to this Agreement, or which has been delivered to such Lender by or on behalf of Borrower in connection with such Lender’s credit evaluation of Borrower prior to entering into this Agreement.”

   

    

  
    	 	
            24.

          	
            Section 13.1 of the Loan Agreement is hereby amended by deleting the following defined terms in their entirety:

          

  

   

  

  “Annual Revolving Line Monitoring Fee,” “Availability Amount,” “Borrowing

      Base,” “Borrowing Base Certificate,” “Eligible Accounts,” “Eligible CM Accounts,” “Eligible

      UV Accounts,” “Liquidity Ratio,” “Non-Use Fees,” “Overadvance,” “Quick Assets,” “Reserves,” “Revolving Advance,” “Revolving Line,” “Revolving Line Commitment,” “Revolving Line Commitment Percentage,” “Revolving Line Maturity Date,” “Revolving Line Priority Collateral,” “Streamline Period,” “Subject Month,” “Term Loan Priority Collateral,” “Testing Month”

   

  

  
    	 	
            25.

          	
            Section 13.1 of the Loan Agreement is hereby amended by amending and restating the following defined terms in their entirety:

          

  

   

  

  “Basic Rate” is the floating per annum rate of interest (based on a year of three hundred sixty
    (360) days) equal to the greater of (i) eight and fifty-five hundredths of one percent (8.55%) and (ii) the sum of (A) the thirty (30) day U.S. LIBOR rate reported in the Wall Street Journal on the last Business Day of the month that
    immediately precedes the month in which the interest will accrue, plus (B) six and forty-eight hundredths of one percent (6.48%).  If The Wall Street Journal (or another nationally recognized rate reporting source acceptable to Collateral
    Agent) no longer reports the U.S. LIBOR Rate or if such interest rate no longer exists or if The Wall Street Journal no longer publishes the U.S. LIBOR Rate or ceases to exist, Collateral Agent may in good faith select a replacement interest
    rate or replacement publication, as the case may be.  Notwithstanding the foregoing, the Basic Rate for the Term Loan for the period from the Effective Date through and including November 30, 2018 shall not be less than 8.78688%.

   

  

  “Credit Extension” is any Term Loan or any other extension of credit by Collateral Agent or Lenders for Borrower’s
    benefit.

   

  

  “Required Lenders” means (i) for so long as all of the Persons that are Lenders on the Effective
    Date (each an “Original Lender”) have not assigned or transferred any of their interests in their Term Loans, Lenders holding one hundred percent (100%) of the aggregate outstanding principal balance of the Term
    Loans, or (ii) at any time from and after any Original Lender has assigned or transferred any interest in its Term Loans, Lenders holding at least sixty six percent (66%) of the aggregate outstanding principal balance of the Term Loans and, in respect
    of this clause (ii), (A) each Original Lender that has not assigned or transferred any portion of its Term Loans, (B) each assignee or transferee of an Original Lender’s interest in the Term Loans, but only to the extent that such assignee or
    transferee is an Affiliate or Approved Fund of such Original Lender, and (C) any Person providing financing to any Person described in clauses (A) and (B) above; provided, however, that this clause (C) shall only apply upon the occurrence of a default,
    event of default or similar occurrence with respect to such financing.

   

  

  
    
      	 	
              26.

            	
              Section 13.1 of the Loan Agreement is hereby amended by inserting the following defined terms in alphabetical order therein:

            

    

     

  

  
    6

    
      

  

  

  Initial Term Loan” is defined in Section 2.2(a) hereof.

   

  

  “Initial Term Loan Commitment” is, for any Lender, the obligation of such Lender to make a Term Loan, up to the
    principal amount shown on Schedule 1.1.  “Initial Term Loan Commitments” means the aggregate amount of such commitments of all Lenders.

   

  

  “Initial Term Loan Commitment Percentage” is set forth in Schedule 1.1,
    as amended from time to time.

   

  

  “Term B Loan” is defined in Section 2.2(a) hereof.

   

  

  “Term B Loan Commitment” is, for any Lender, the obligation of such Lender to make a Term Loan, up to the principal
    amount shown on Schedule 1.1.  “Term B Loan Commitments” means the aggregate amount of such commitments of all Lenders.

   

  

  “Term B Loan Commitment Percentage” is set forth in Schedule 1.1, as amended from time to time.

   

  

  
    	 	
            27.

          	
            Schedule 1.1 of the Loan Agreement is hereby amended and restated in its entirety as set forth on Schedule 1.1 attached hereto.

          

     

    

  

  
    	 	
            28.

          	
            Exhibit C of the Loan Agreement is hereby amended and restated in its entirety as set forth on Exhibit C attached hereto.

          

     

    

  

  
    	 	
            29.

          	
            Limitation of Amendment.

          

     

    

  

  
    	 	
            a.

          	
            The amendments set forth in Sections 3 through 28, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be
              deemed to (i) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (ii) otherwise prejudice any right or remedy which the Lenders, or obligation which Borrower, may now have or may have
              in the future under or in connection with any Loan Document.

          

     

    

  

  
    	 	
            b.

          	
            This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and
              agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

          

     

    

  

  
    	 	
            30.

          	
            Release by Borrower.

          

     

    

  

  
    	 	
            a.

          	
            FOR GOOD AND VALUABLE CONSIDERATION, Borrower hereby forever relieves, releases, and discharges Collateral Agent and each Lender and their
              respective present or former employees, officers, directors, agents, representatives, attorneys, and each of them, from any and all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs and expenses, actions and
              causes of action, of every type, kind, nature, description or character whatsoever, whether known or unknown, suspected or unsuspected, absolute or contingent, arising out of or in any manner whatsoever connected with or related to facts,
              circumstances, issues, controversies or claims existing or arising from the beginning of time through and including the date of execution of this Amendment solely to the extent such claims arise out of or are in any manner whatsoever
              connected with or related to the Loan Documents, the Recitals hereto, any instruments, agreements or documents executed in connection with any of the foregoing or the origination, negotiation, administration, servicing and/or enforcement of
              any of the foregoing (collectively “Released Claims”).

          

     

    

  

  
    	 	
            b.

          	
            In furtherance of this release, Borrower expressly acknowledges and waives any and all rights under Section 1542 of the California Civil Code, which
              provides as follows:

          

  

   

  

  “A general release does not extend to claims that the creditor or releasing
    party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or releasing party.” (Emphasis added.)

  

  

  
    7

    
      

  

  
    	 	
            c.

          	
            By entering into this release, Borrower recognizes that no facts or representations are ever absolutely certain and it may hereafter discover facts
              in addition to or different from those which it presently knows or believes to be true, but that it is the intention of Borrower hereby to fully, finally and forever settle and release all matters, disputes and differences, known or unknown,
              suspected or unsuspected in respect of the Released Claims; accordingly, if Borrower should subsequently discover that any fact that it relied upon in entering into this release was untrue, or that any understanding of the facts was
              incorrect, Borrower shall not be entitled to set aside this release by reason thereof, regardless of any claim of mistake of fact or law or any other circumstances whatsoever. Borrower acknowledges that it is not relying upon and has not
              relied upon any representation or statement made by Bank with respect to the facts underlying this release or with regard to any of such party’s rights or asserted rights.

          

     

    

  

  
    	 	
            d.

          	
            This release may be pleaded as a full and complete defense and/or as a cross-complaint or counterclaim against any action, suit, or other proceeding
              that may be instituted, prosecuted or attempted in breach of this release. Borrower acknowledges that the release contained herein constitutes a material inducement to Collateral Agent and the Lenders to enter into this Amendment, and that
              Collateral Agent and the Lenders would not have done so but for Collateral Agent’s and the Lenders’ expectation that such release is valid and enforceable in all events.

          

     

    

  

  
    	 	
            e.

          	
            Borrower hereby represents and warrants to Collateral Agent and the Lenders, and Collateral Agent and the Lenders are relying thereon, as follows:

          

     

    

  

  
    	 	
            i.

          	
            Except as expressly stated in this Amendment, neither Collateral Agent, the Lenders nor any agent, employee or representative of any of them has
              made any statement or representation to Borrower regarding any fact relied upon by Borrower in entering into this Amendment.

          

     

    

  

  
    	 	
            ii.

          	
            Borrower has made such investigation of the facts pertaining to this Amendment and all of the matters appertaining thereto, as it deems
              necessary.

          

     

    

  

  
    	 	
            iii.

          	
            The terms of this Amendment are contractual and not a mere recital.

          

     

    

  

  
    	 	
            iv.

          	
            This Amendment has been carefully read by Borrower, the contents hereof are known and understood by Borrower, and this Amendment is signed
              freely, and without duress, by Borrower.

          

     

    

  

  
    	 	
            v.

          	
            Borrower represents and warrants that it is the sole and lawful owner of all right, title and interest in and to every claim and every other
              matter which it releases herein, and that it has not heretofore assigned or transferred, or purported to assign or transfer, to any person, firm or entity any claims or other matters herein released. Borrower shall indemnify Collateral Agent
              and the Lenders, defend and hold each harmless from and against all claims based upon or arising in connection with prior assignments or purported assignments or transfers of any claims or matters released herein.

          

     

    

  

  
    	 	
            31.

          	
            To induce Collateral Agent and the Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and the Lenders as follows:

          

     

    

  

  
    	 	
            a.

          	
            Immediately after giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true, accurate and complete in all
              material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date) and (ii) no Event of Default has occurred and is continuing;

          

     

    

  

  
    8

    
      

  

  
    	 	
            b.

          	
            Borrower has the power and due authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this
              Amendment;

          

     

    

  

  
    	 	
            c.

          	
            The organizational documents of Borrower delivered to Collateral Agent on the Effective Date remain true, accurate and complete and have not been amended,
              supplemented or restated and are and continue to be in full force and effect;

          

     

    

  

  
    	 	
            d.

          	
            The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment,
              do not and will not contravene (i) any law or regulation binding on or affecting Borrower, (ii) any contractual restriction with a Person binding on Borrower, (iii) any order, judgment or decree of any court or other governmental or public
              body or authority, or subdivision thereof, binding on Borrower, or (iv) the organizational documents of Borrower;

          

     

    

  

  
    	 	
            e.

          	
            The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment,
              do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except
              as already has been obtained or made; and

          

     

    

  

  
    	 	
            f.

          	
            This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its
              terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

          

     

    

  

  
    	 	
            32.

          	
            Except as expressly set forth herein, the Loan Agreement shall continue in full force and effect without alteration or amendment.  This Amendment and the Loan
              Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.

          

     

    

  

  
    	 	
            33.

          	
            This Amendment shall be deemed effective as of the First Amendment Date upon (a) the due execution and delivery to Collateral Agent of this Amendment by each party
              hereto, (b) the due execution and delivery to Collateral Agent and the Lenders of the Term B Loan Secured Promissory Notes by each party hereto, and (c) Borrower’s payment of all Lenders’ Expenses incurred through the date hereof, which may
              be debited (or ACH’d) from any of Borrower’s accounts with the Lenders.

          

     

    

  

  
    	 	
            34.

          	
            This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and
              the same instrument.

          

     

    

  

  
    	 	
            35.

          	
            This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of California.

          

  

   

  

  [Balance of Page Intentionally Left Blank]

  

  

  
    9

    
      

  

  IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Loan and Security Agreement to be
    executed as of the date first set forth above.

  

  

  	
          BORROWER:

        	 
	  	 
	
          CASTLE BIOSCIENCES, INC.

        	 
	 	 	 
	By	
          /s/ Derek Maetzold

        	 
	Name: 	
          Derek Maetzold

        	 
	Title:	
          President & CEO

        	 
	 	 	 
	
          COLLATERAL AGENT AND LENDER:

        	 
	 	 	 
	
          OXFORD FINANCE LLC

        	 
	 	 	 
	By:	
          /s/ Colette H. Featherly

        	 
	Name:	
          Colette H. Featherly

        	 
	Title:	
          Senior Vice President

        	 
	 	 	 
	
          LENDER:

        	 
	 	 	 
	
          SILICON VALLEY BANK

        	 
	 	 
	By: 

          	
          /s/ Kristine Rohmer

        	 
	Name: 

          	
          Kristine Rohmer

        	 
	Title:

          	
          Vice President

        	 

  

  

  
    
      

  

  SCHEDULE 1.1

  Lenders and Commitments

   

    

  	 	
          Initial Term Loans

        	 
	
          Lender

        	
          Initial Term Loan Commitment

        	
          Initial Term Loan Commitment

           Percentage

        
	
          OXFORD FINANCE LLC

        	
          $10,000,000.00

        	
          50.00%

        
	
          SILICON VALLEY BANK

        	
          $10,000,000.00

        	
          50.00%

        
	
          TOTAL

        	
          $20,000,000.00

        	
          100.00%

        

  

  

  	 	
          Term B Loans

        	 
	
          Lender

        	
          Term B Loan Commitment

        	
          Term B Loan Commitment 

          Percentage

        
	
          OXFORD FINANCE LLC

        	
          $2,500,000.00

        	
          50.00%

        
	
          SILICON VALLEY BANK

        	
          $2,500,000.00

        	
          50.00%

        
	
          TOTAL

        	
          $5,000,000.00

        	
          100.00%

        

  

  

  	 	
          Aggregate (all Term Loans)

        	 
	
          Lender

        	
          Term Loan Commitment

        	
          Term Loan Commitment

           Percentage

        
	
          OXFORD FINANCE LLC

        	
          $12,500,000.00

        	
          50.00%

        
	
          SILICON VALLEY BANK

        	
          $12,500,000.00

        	
          50.00%

        
	
          TOTAL

        	
          $25,000,000.00

        	
          100.00%

        

  

  

  
    
      

  

  EXHIBIT C

  Compliance Certificate

   

    

  	
          TO:

        	
          OXFORD FINANCE LLC, as Collateral Agent and Lender

          SILICON VALLEY BANK, as Lender

           

          

        
	
          FROM:

        	
          CASTLE BIOSCIENCES, INC.

        

   

  

  The undersigned authorized officer (“Officer”) of CASTLE BIOSCIENCES, INC. (“Borrower”), hereby
    certifies that in accordance with the terms and conditions of the Loan and Security Agreement by and among Borrower, Collateral Agent, and the Lenders from time to time party thereto (the “Loan Agreement;”
    capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement),

   

  

  (a)          Borrower is in complete compliance for the period ending _______________ with all
      required covenants except as noted below;

   

    

  (b)          There are no Events of Default, except as noted below;

   

    

  (c)          Except as noted below, all representations and warranties of Borrower stated in
      the Loan Documents are true and correct in all material respects on this date and for the period described in (a), above; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already
      are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date.

   

    

  (d)          Borrower, and each of Borrower’s Subsidiaries, has timely filed all required tax
      returns and reports, or obtain extensions thereof, Borrower, and each of Borrower’s Subsidiaries, has timely paid all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower, or Subsidiary, except as
      otherwise permitted pursuant to the terms of Section 5.8 of the Loan Agreement;

   

    

  (e)          No Liens have been levied or claims made against Borrower or any of its
      Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Collateral Agent and the Lenders.

   

    

  Attached are the required documents, if any, supporting our certification(s).  The Officer, on behalf of Borrower, further certifies that the attached financial statements are
    prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the case of unaudited financial statements,
    for the absence of footnotes and subject to year‐end audit adjustments as to the interim financial statements.

   

  

  Please indicate compliance status since the last Compliance Certificate by circling Yes, No, or N/A under “Complies” column.

   

  

  	 	
          Reporting Covenant

        	
          Requirement

        	
          Actual

        	
          Complies

        
	 	 	 	 	 	 	 
	
          1)

        	
          Financial statements

        	
          Monthly within 30 days

        	 	
          Yes

        	
          No

        	
          N/A

        
	 	 	 	 	 	 	 
	
          2)

        	
          Annual (CPA Audited) statements

        	
          Within 120 days after FYE

        	 	
          Yes

        	
          No

        	
          N/A

        
	 	 	 	 	 	 	 
	
          3)

        	
          Annual Financial Projections/Budget (prepared on a monthly basis)

        	
          Annually (within earlier of 30 days of FYE or 7 Business Days of approval by Board), and when revised

        	 	
          Yes

        	
          No

        	
          N/A

        

  

  

  
    
      

  

  	
          4)

        	
          A/R & A/P agings

        	
          Monthly within 30 days

        	 	
          Yes

        	
          No

        	
          N/A

        
	 	 	 	 	 	 	 
	
          5)

        	
          8‐K, 10‐K and 10‐Q Filings

        	
          If applicable, within 5 days of filing

        	 	
          Yes

        	
          No

        	
          N/A

        
	 	 	 	 	 	 	 
	
          6)

        	
          Security Holder reports and notices

        	
          Within 5 days of delivery

        	 	
          Yes

        	
          No

        	
          N/A

        
	 	 	 	 	 	 	 
	
          7)

        	
          Compliance Certificate

        	
          Monthly within 30 days

        	 	
          Yes

        	
          No

        	
          N/A

        
	 	 	 	 	 	 	 
	
          8)

        	
          IP Report

        	
          When required

        	 	
          Yes

        	
          No

        	
          N/A

        
	 	 	 	 	 	 	 	 
	
          9)

        	
          Total amount of Borrower’s cash and cash equivalents at the last day of the measurement period

        	 	
          $

        	

        	
          Yes

        	
          No

        	
          N/A

        
	 	 	 	 	 	 	 	 
	
          10)

        	
          Total amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day of the measurement period

        	 	
          $

        	 	
          Yes

        	
          No

        	
          N/A

        

  

  

  Deposit and Securities Accounts

  (Please list all accounts; attach separate sheet if additional space needed)

  

  

  	 	
          Institution Name

        	
          Account Number

        	
          New Account?

        	
          Account Control Agreement in

           place?

        
	 	 	 	 	 
	
          1)

        	 	 	
          Yes

        	
          No

        	
          Yes

        	
          No

        
	 	 	 	 	 	 	 
	
          2)

        	 	 	
          Yes

        	
          No

        	
          Yes

        	
          No

        
	 	 	 	 	 	 	 
	
          3)

        	 	 	
          Yes

        	
          No

        	
          Yes

        	
          No

        
	 	 	 	 	 	 	 
	
          4)

        	 	 	
          Yes

        	
          No

        	
          Yes

        	
          No

        

  

  

  Financial Covenants

  

  

  	 	
          Covenant

        	
          Requirement

        	
          Actual

        	
          Compliance

        
	 	 	 	 	 
	
          

        	
          Minimum Revenues

          (trailing three months)

        	
          Trailing 

          trailing

          3-month

          revenue          

          period ending

          

        	
          Minimum

           

          

           3 months 

           

          

          ([***]% of plan) 

        	
          

          

        	
          

          

        	
          

          

        
	 	 	 	 	 
	
          5/31/2019

          

          6/30/2019

          

          7/31/2019

        	
          $[_______] 

          

          $[_______]

          $[_______]

        	[__%]	Yes	No
	 	 	 	 	 	 	 
	 	 	[Thereafter, at least [***]% of projections]	 	 	 
	 	 	 	 	 	 
	 	 	
          [$_________]

        	
          [$________]

        	 	 

  

  

  
    Other Matters

    

    

    	
            1)

          	
            Have there been any changes in management since the last Compliance Certificate?

          	
            Yes

          	
            No

          
	 	 	 	 
	
            2)

          	
            Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan Agreement?

          	
            Yes

          	
            No

          

  

   

  

  [***]=Certain Confidential Information Omitted 

  
    
      

  

  

  	
          3)

        	
          Have there been any new or pending claims or causes of action against Borrower that involve more than [***] Dollars ($[***])?

        	
          Yes

        	
          No

        
	 	 	 	 
	
          4)

        	
          Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries?  If yes, provide copies
            of any such amendments or changes with this Compliance Certificate.

        	
          Yes

        	
          No

        

  

     

   
  [***]=Certain Confidential Information Omitted 

  
    
      

  

  Exceptions

   

    

  Please explain any exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions.”  Attach separate sheet if additional space needed.)

   

  

  
    	CASTLE BIOSCIENCES, INC. 	 
	 	 	 
	
            By

              

          	 	
             

          
	
            Name:

            

          	 	
             

          
	
            Title: 

            

          	 	
             

          
	 	 	 
	Date:	 	 

  

  

  

  	 	
          LENDER USE ONLY

        
	 	 	 
	 	
          Received by:

        	 	 	
          Date:

        	 
	 	 	 
	 	
          Verified by:

        	 	 	
          Date:

        	 

  

  

  	 	
          Compliance Status:                    

            

        	Yes	NoEX-4.1

 Exhibit 4.1 

Sempra Energy 

OFFICERS’ CERTIFICATE 

(Pursuant to Sections 201 and 301 of the Indenture) 

June 26, 2019 
 The undersigned, Peter R.
Wall, Vice President, Controller and Chief Accounting Officer, and Bruce E. MacNeil, Vice President and 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 June 26, 2019 (the “Indenture”)
between the Company and U.S. Bank National Association, as Trustee (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 $757,500,000 aggregate principal amount of the Company’s 5.750% Junior Subordinated Notes due 2079 (the “Notes”) and the form of certificate evidencing the Notes have been complied
with, and whether the conditions in the Indenture relating to the authentication and delivery by the Trustee of the Notes have been complied with, certify that (1) the terms of the Notes were established by the undersigned pursuant to authority
delegated to them by resolutions duly adopted by the Board of Directors of the Company on February 23, 2017, September 22, 2017 and November 9, 2017 (collectively, the “Resolutions”) and such terms are
as set forth and incorporated by reference in Annex I hereto, (2) the form of certificate evidencing the Notes 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 hereto, (3) true, complete and correct copies 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, are attached as exhibits to the
Certificate of the Secretary of the Company of even date herewith, and (4) the form and terms of the Notes 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 and the form of certificate evidencing
the Notes, and relating to the execution, authentication and delivery of the Notes, 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/ Peter R. Wall

	Peter R. Wall
	Vice President, Controller and
	Chief Accounting Officer
	
	 /s/ Bruce E. MacNeil

	Bruce E. MacNeil
	Vice President and Treasurer

 ANNEX I 

Capitalized terms used in this Annex I and not otherwise defined herein have the same definitions as in the Indenture referred to in the
Officers’ Certificate of which this Annex I constitutes a part. 
 (1) One series of debt securities is established hereby and shall be
known and designated as the “5.750% Junior Subordinated Notes due 2079” (hereinafter sometimes referred to as the “Securities,” the “Securities of such series” or the “Notes”). 

(2) The aggregate principal amount of the Securities of such series which may be authenticated and delivered under the Indenture is limited to
$757,500,000, except for Securities of 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 such series which, pursuant to Section 303 of the Indenture, are deemed never to have been authenticated and delivered under the Indenture. However, such 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 offering price, the
date of 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, and 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, such series may not 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 such series are to be issued only as registered securities without coupons. The Securities of such 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 such 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
such 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 such series shall be sold by the Company to the several underwriters (the “Underwriters”) named in
Schedule I to the Underwriting Agreement dated June 13, 2019 between the Company and BofA Securities, Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC, as representatives of the Underwriters (the
“Underwriting Agreement”), for a total price of $734,665,355, and the initial price to the public of Securities of such series shall be 100.000% of the principal amount of the Securities of such series (plus accrued and unpaid
interest, if any), and total underwriting discounts and commissions shall be $22,834,645. 

  
 Annex I-1 

 (5) The Securities of such 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 such 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 such 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 such series and may from time to time designate one or more other offices or agencies for such purposes with
respect to the Securities of such 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 such series in the Borough of
Manhattan, The City of New York. 
 (8) The Securities of such series shall be issued in denominations of $25 and integral multiples of $25
in excess thereof. 
 (9) The principal of, premium, if any, and interest on the Securities of such series shall be payable in U.S. dollars.

 (10) Section 1303 of the Indenture shall not apply to the Securities of such series. 

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

(12) Anything in the Indenture or the Securities of such series to the contrary notwithstanding, payments of the principal of and premium, if
any, and interest on the Global Securities of such 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 such series provides for the payment of
interest on overdue principal of, or 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 such 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 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. 

  
 Annex I-2 

 (15) As used in the Indenture with respect to the Securities of such 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) Notwithstanding the provisions of Section 502 of the Indenture, neither the
Trustee nor the Holders of the Securities of such series shall be entitled to declare the principal of or accrued and unpaid interest on the Securities of such series to be immediately due and payable by reason of the occurrence and continuation of
an Event of Default specified in clause (4) of Section 501 of the Indenture applicable to the Securities of such series, and any notice of declaration of acceleration based on such an Event of Default shall be null and void with respect to
the Securities of such series; provided that, notwithstanding the foregoing, so long as an Event of Default specified in clause (4) of Section 501 of the Indenture with respect to the Securities of such series shall have occurred and shall
be continuing, the Trustee and the Holders of the Securities of such series may exercise the other rights and remedies available under the Indenture in connection with such Event of Default, as well as such other rights and remedies as may be
available under applicable law or otherwise. 

  
 Annex I-3 

 ANNEX II 

Form of Certificate Evidencing the 5.750% Junior Subordinated Notes due 2079 

 [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 

5.750% Junior Subordinated Notes due 2079 
  

					
		  		  	$                        
	No. 00                	  		  	CUSIP No. 816851 604
		  		  	ISIN No. US816851 6040

 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 July 1, 2079 (the “Maturity Date”), and to pay interest thereon from June 26, 2019 or from the most recent date to
which interest has been paid or duly provided for, quarterly in arrears on January 1, April 1, July 1 and October 1 in each year (each, an “Interest Payment Date”), commencing October 1, 2019 (subject to the
right of the Corporation to defer the payment of interest, but not beyond the Maturity Date, in accordance with the provisions set forth below), and on the Maturity Date at the rate of 5.750% 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
5.750% 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 December 15, March 15, June 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. 

  
 Annex II-1 

 So long as no Event of Default under the Indenture with respect to the Securities of this
series has occurred and is continuing, the Corporation may, at its option, defer interest payments on the Securities of this series, from time to time, for one or more deferral periods of up to 40 consecutive Interest Payment Periods (as defined
below) each (each such deferral period, commencing on the Interest Payment Date on which the first such deferred interest payment otherwise would have been payable, an “Optional Deferral Period”), except that no such Optional Deferral
Period may extend beyond the Maturity Date or end on a day other than the day immediately preceding an Interest Payment Date. During any Optional Deferral Period, interest on the Securities of this series will continue to accrue at a rate of 5.750%
per year. In addition, during any Optional Deferral Period interest on the deferred interest (“compound interest”) will accrue at the rate of 5.750% per year, compounded quarterly, to the extent permitted by applicable law. No interest
will be due and payable on the Securities of this series until the end of an Optional Deferral Period, except upon a redemption of any or all of the Securities of this series on any Redemption Date during such Optional Deferral Period (in which case
all accrued and unpaid interest (including, to the extent permitted by applicable law, compound interest) on the Securities of this series to be redeemed will be due and payable on such Redemption Date), or unless the principal of and interest on
the Securities of this series shall have been declared due and payable as the result of an Event of Default with respect to the Securities of this series (in which case all accrued and unpaid interest on the Securities of this series, including, to
the extent permitted by applicable law, compound interest on the Securities of this series, shall become due and payable). All references in the Securities of this series and, insofar as relates to the Securities of this series, the Indenture to
“interest” on the Securities of this series shall be deemed to include any such deferred interest and, to the extent permitted by applicable law, compound interest, unless otherwise expressly stated or the context otherwise requires. 

Before the end of any Optional Deferral Period that is shorter than 40 consecutive quarterly Interest Payment Periods, the Corporation may
extend such Optional Deferral Period, so long as the entire Optional Deferral Period does not exceed 40 consecutive quarterly Interest Payment Periods or extend beyond the Maturity Date. The Corporation may also elect to shorten the length of any
Optional Deferral Period. No Optional Deferral Period (including as extended or shortened) may end on a day other than the day immediately preceding an Interest Payment Date. At the end of any Optional Deferral Period, if all amounts then due on the
Securities of this series, including all accrued and unpaid interest thereon (including, without limitation and to the extent permitted by applicable law, compound interest), shall have been paid in full, the Corporation may elect to begin a new
Optional Deferral Period. 
 During any Optional Deferral Period, the Corporation shall not do any of the following: 

 

	 	(a)	 declare or pay any dividends or distributions on Capital Stock (as defined below) of the Corporation;

  

	 	(b)	 redeem, purchase, acquire or make a liquidation payment with respect to any Capital Stock of the Corporation;

  

	 	(c)	 pay any principal, interest or premium on, or repay, repurchase or redeem, any indebtedness of the Corporation
that ranks equal with or junior to the Securities of this series in right of payment; or 

  

	 	(d)	 make any payments with respect to any guarantees by the Corporation of any indebtedness if such guarantees rank
equal with or junior to the Securities of this series in right of payment. 

 However, during an Optional Deferral Period,
the Corporation may (a) declare and pay dividends or distributions payable solely in shares of its common stock or options, warrants or rights to subscribe for or purchase shares of its common stock, (b) declare and pay any dividend in
connection with the implementation of a plan (a “Rights Plan”) providing for the issuance by the Corporation to all holders of its common stock of rights entitling them to subscribe for or purchase its common stock or any class or series
of its preferred stock, which rights (1) are deemed to be transferred with such common stock, (2) are not exercisable and (3) are also issued in respect of future issuances of its common stock, in each case until the occurrence of a
specified event or events, (c) issue any of shares of its Capital Stock under any Rights Plan or redeem or repurchase any rights distributed pursuant to a Rights Plan, (d) reclassify its Capital Stock or exchange or convert one class or
series of its Capital Stock for another class or series of its Capital Stock, (e) purchase fractional interests in shares of its Capital Stock pursuant to the conversion or exchange provisions of such Capital Stock or the security being
converted or exchanged, (f) purchase, acquire or withhold shares of its common stock related to the issuance of its common stock or rights under any dividend reinvestment plan or related to any of its benefit plans for its directors, officers,
employees, consultants or advisors and (g) for the avoidance of doubt, convert convertible Capital Stock of the Corporation into other Capital Stock of the Corporation in accordance with the terms of such convertible Capital Stock. 

  
 Annex II-2 

 The Corporation will give the holders of the Securities of this series and the Trustee
notice of its election of, or any shortening or extension of, an Optional Deferral Period at least 10 business days prior to the earlier of (1) the next succeeding Interest Payment Date or (2) the date upon which the Corporation is
required to give notice to the New York Stock Exchange or any applicable self-regulatory organization or to Holders of the Securities of this series of the next succeeding Interest Payment Date or the record date therefor. The record date for the
payment of deferred interest and, to the extent permitted by applicable law, compound interest payable on the Interest Payment Date immediately following the last day of an Optional Deferral Period will be the Regular Record Date with respect to
such Interest Payment Date. The term “business day,” as used in this paragraph, 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. 
 “Capital Stock” means (i) in the case of a corporation or a company, corporate stock or shares;
(ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (iii) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and (iv) any other interest or participation that confers on a person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing
person. 
 “Interest Payment Period” means the quarterly period from and including an Interest Payment Date to but excluding the
next succeeding Interest Payment Date, except for the first Interest Payment Period which shall be the period from and including the Original Issue Date to but excluding October 1, 2019. 

“Original Issue Date” means June 26, 2019. 

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 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-3 

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

 

			
	SEMPRA ENERGY

 
			
		
	By:	 	  

 
			
	Name:	 	Bruce E. MacNeil
	Title:	 	Vice President and Treasurer

  

			
	Attest:	 	

			
		
	By:	 	  

			
	Name:	 	Jennifer F. Jett
	Title:	 	Corporate Secretary

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

  

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	  

		 	Authorized Signatory

 Dated:             , 2019 

  
 Annex II-4 

 (REVERSE OF SECURITY) 

This Security is one of a duly authorized issue of debt securities of the Corporation (herein called the “Securities”),
issued and to be issued in one or more series under an Indenture, dated as of June 26, 2019 (herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Corporation and 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. 
 On and after October 1, 2024, the Corporation may, at its option, redeem the Securities of this series, at any time in whole
or from time to time in part, at a Redemption Price equal to 100% of the principal amount of the Securities of this series to be redeemed, plus (subject to the provisions set forth below regarding the payment of installments of interest on
Securities of this series that are due and payable on any Interest Payment Date falling on or prior to a Redemption Date) accrued and unpaid interest on the Securities of this series to be redeemed to the Redemption Date. 

Before October 1, 2024, the Corporation may at its option redeem the Securities of this series, in whole but not in part, following the
occurrence and during the continuance of a Tax Event (as defined below), at a Redemption Price equal to 100% of the principal amount of the Securities of this series, plus (subject to the provisions set forth below regarding the payment of
installments of interest on Securities of this series that are due and payable on any Interest Payment Date falling on or prior to a Redemption Date) accrued and unpaid interest on the Securities of this series to the Redemption Date. 

A “Tax Event” means that the Corporation has received an opinion of counsel experienced in such matters to the effect that, as a
result of: 
  

	 	(a)	 any amendment to, clarification of, or change, including any announced prospective change, in the laws or
treaties of the United States or any of its political subdivisions or taxing authorities, or any regulations under those laws or treaties; 

  

	 	(b)	 an administrative action, which means any judicial decision or any official administrative pronouncement,
ruling, regulatory procedure, notice or announcement including any notice or announcement of intent to issue or adopt any administrative pronouncement, ruling, regulatory procedure or regulation; 

 

	 	(c)	 any amendment to, clarification of, or change in the official position or the interpretation of any
administrative action or judicial decision or any interpretation or pronouncement that provides for a position with respect to an administrative action or judicial decision that differs from the previously generally accepted position, in each case
by any legislative body, court, governmental authority or regulatory body, regardless of the time or manner in which that amendment, clarification or change is introduced or made known; or 

 

	 	(d)	 a threatened challenge asserted in writing in connection with a tax audit of the Corporation or any of the
Corporation’s subsidiaries, or a publicly-known threatened challenge asserted in writing against any other taxpayer that has raised capital through the issuance of securities that are substantially similar to the Securities of this series,

 which amendment, clarification or change is effective or the administrative action is taken or judicial decision, interpretation or
pronouncement is issued or threatened challenge is asserted or becomes publicly-known after June 13, 2019, there is more than an insubstantial risk that interest payable by the Corporation on the Securities of this series is not deductible, or
within 90 days would not be deductible, in whole or in part, by the Corporation for United States federal income tax purposes. 

  
 Annex II-5 

 Before October 1, 2024, the Corporation may, at its option, redeem the Securities of
this series, in whole but not in part, following the occurrence and during the continuance of a Rating Agency Event (as defined below), at a Redemption Price equal to 102% of the principal amount of the Securities of this series, plus (subject to
the provisions set forth below regarding the payment of installments of interest on Securities of this series that are due and payable on any Interest Payment Date falling on or prior to a Redemption Date) accrued and unpaid interest on the
Securities of this series to the Redemption Date. 
 “Rating Agency Event” means a change in the methodology published by any
nationally recognized statistical rating organization within the meaning of Section 3(a)(62) of the Securities Exchange Act of 1934, as amended, that publishes a rating for the Corporation as of June 13, 2019 (a “rating agency”)
in assigning equity credit to securities such as the Securities of this series, as such methodology is in effect on June 13, 2019 (the “current methodology”) that results in (i) any shortening of the length of time for which
equity credit pertaining to the Securities of this series by such rating agency would have been in effect had the current methodology not been changed or (ii) a lower equity credit being assigned by such rating agency to the Securities of this
series as of the date of such change than the equity credit that would have been assigned to the Securities of this series by such rating agency had the current methodology not been changed. 

Notwithstanding any statement to the contrary set forth above, 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 for the Securities of this series will be payable on that Interest Payment Date to the Holders of such Securities 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, except that, if a Redemption Date for any Securities of this series falls on any day during an Optional Deferral Period,
accrued and unpaid interest (including, to the extent permitted by applicable law, compound interest) on such Securities of this series will be paid on such Redemption Date to the persons entitled to receive the Redemption Price of such Securities
of this series. For the avoidance of doubt, the Interest Payment Date falling immediately after the last day of an Optional Deferral Period shall not be deemed to fall on a day during such Optional Deferral Period. 

The Corporation will mail notice of any redemption at least 30 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 (including, if applicable, deferred interest and, to the extent permitted by applicable law, compound interest) to the Redemption Date, and will be paid upon surrender thereof for redemption. If the Corporation elects to redeem all or a
portion of the Securities of this series, that redemption will not be conditional upon receipt by the Paying Agent or the Trustee of monies sufficient to pay the Redemption Price. 

Unless the Corporation defaults in payment of the Redemption Price, on and after the Redemption Date interest will cease to accrue on the
Securities of this series or portions thereof called 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. 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security upon compliance with certain
conditions set forth in the Indenture. 
 If an Event of Default with respect to the Securities of this series (other than an Event of
Default of the type set forth in clause (4) of Section 501 of the Indenture with respect to the Securities of this series) shall occur and be continuing, the principal of and accrued and unpaid interest (including, if applicable, deferred
interest and, to the extent permitted by applicable law, compound interest) on the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. Neither the Trustee nor the Holders of the
Securities of this series shall be entitled to declare the principal of or accrued and unpaid interest on the Securities of this series to be immediately due and payable by reason of the occurrence and continuation of an Event of Default specified
in clause (4) of Section 501 of the Indenture applicable to the Securities of this series, and any notice of declaration of acceleration based on such an Event of Default shall be null and void with respect to the Securities of this
series; provided that, notwithstanding the foregoing, so long as an Event of Default specified in clause (4) of Section 501 of the Indenture shall have occurred and shall be continuing with respect to the Securities of this series, the
Trustee and the Holders of the Securities of this series may exercise the other rights and remedies available under the Indenture in connection with such Event of Default, as well as such other rights and remedies as may be available under
applicable law or otherwise. 
  

  
 Annex II-6 

 The indebtedness represented by the Securities of this series is, to the extent and in a
manner set forth in the Indenture, expressly subordinated in right of payment to the prior payment of all existing and future Senior Indebtedness(as defined in or pursuant to the Indenture with respect to the Securities of this series) and this
Security is issued subject to such provisions, and each Holder of this Security, by acceptance thereof, shall be deemed to have agreed to and to be bound by such provisions and to authorize and direct the Trustee in his, her or its behalf to take
such action as may be necessary or appropriate to effectuate such subordination as provided in the Indenture and to appoint the Trustee his, her or its attorney-in-fact,
as the case may be, for any and all such purposes. 
 The Corporation agrees that the Corporation, and each Holder (and beneficial owner) of
Securities of this series shall, by accepting any Securities of this series (or a beneficial interest therein), be deemed to have agreed that such Holder (or beneficial owner), intends that the Securities of this series constitute indebtedness of
the Corporation, and will treat the Securities of this series as indebtedness of the Corporation, for United States federal, state and local tax purposes. 

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 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 25% 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, and the Trustee, for 60 days after its receipt of such notice, request and offer of indemnity, shall not have received from the Holders of a majority in principal amount of Securities of this series at the
time Outstanding a direction inconsistent with such request, and the Trustee shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit
instituted by the Holder of this 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. 

  
 Annex II-7 

 The Securities of this series are issuable only in registered form without coupons in
denominations of $25 and integral multiples of $25 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-8

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