Document:

Exhibit
10.3 

 

 

*000000000004400853%0955%05012020%00000000MAA1403*

 

PROMISSORY
NOTE

 

	
        Principal

        $139,300.00
	
        Loan Date

        05-01-2020
	
        Maturity

        05-01-2022
	
        Loan No

        4400853
	
        Call / Coll

        4a / 01
	
        Account

        MAA1403
	
        Officer

        ***
	Initials
	
        References in the
        boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

        Any item above
        containing “***” has been omitted due to text length limitations.

  

	Borrower:	Manufactured
    Housing Properties, Inc.	 	Lender:	Aquesta
    Bank 
	 	136
    Main Street	 	 	SBA
	 	Pineville,
    NC 28134-0000	 	 	P.O.
    Box 700
	 	 	 	 	Cornelius,
    NC 28031
	 	 	 	 	(704)
    439-4343

 

 

 

	Principal
    Amount: $139,300.00	Interest
    Rate: 1.000%	Date
    of Note: May 1, 2020

 

PROMISE
TO PAY. Manufactured Housing Properties, Inc. (“Borrower”) promises to pay to Aquesta Bank (“Lender”), or
order, in lawful money of the United States of America, the principal amount of One Hundred Thirty-nine Thousand Three Hundred
& 00/100 Dollars ($139,300.00), together with interest on the unpaid principal balance from May 1, 2020, calculated as described
in the “INTEREST CALCULATION METHOD” paragraph using an interest rate of 1.000% per annum based on a year of 360 days,
until paid in full. The interest rate may change under the terms and conditions of the “INTEREST AFTER DEFAULT” section.

 

PAYMENT.
Borrower will pay this loan in full immediately upon Lender’s demand. If no demand is made, Borrower will pay this loan in 17
payments of $7,839.26 each payment and an irregular last payment estimated at $7,839.43. Borrower’s first payment is due December
1, 2020, and all subsequent payments are due on the same day of each month after that. Borrower’s final payment will be due on
May 1, 2022, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Unless
otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal;
then to any escrow or reserve account payments as required under any mortgage, deed of trust, or other security instrument or
security agreement securing this Note; and then to any late charges.

 

INTEREST
CALCULATION METHOD. Interest on this Note is computed on a 30/360 simple interest basis; that is, with the exception of odd days
before the first full payment cycle, monthly interest is calculated by applying the ratio of the interest rate over a year of
360 days, multiplied by the outstanding principal balance, multiplied by a month of 30 days. Interest for the odd days before
the first full month is calculated on the basis of the actual days and a 360-day year. All interest payable under this Note is
computed using this method.

 

RECEIPT
OF PAYMENTS. All payments must be made in U.S. dollars and must be received by Lender consistent with the following payment
instructions: Payments can be made at any branch. See www.aquestabank.com for locations and hours. Lender may modify these payment
instructions by providing updated payment instructions to Borrower in writing. If a payment is made consistent with Lender’s payment
instructions but received after 5:00 PM Eastern Standard Time on a business day, Lender will credit Borrower’s payment on the
next business day.

 

PREPAYMENT.
Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless
agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments under the payment schedule.
Rather, early payments will reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower agrees
not to send Lender payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends
such a payment, Lender may accept it without losing any of Lender’s rights under this Note, and Borrower will remain obligated
to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other
payment instrument that indicates that the payment constitutes “payment in full” of the amount owed or that is tendered
with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Aquesta Bank,
Attn: Loan Operations, P.O. Box 700 Cornelius, NC 28031.

 

LATE
CHARGE. If a payment is 15 days or more late, Borrower will be charged 4.000% of the unpaid portion of the regularly scheduled
payment. This late charge shall be paid to Lender by Borrower to compensate Lender for Lender’s extra costs and expenses caused
by the late payment.

 

INTEREST
AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the total sum due under this Note will continue
to accrue interest at the interest rate under this Note. If judgment is entered in connection with this Note, interest will continue
to accrue after the date of judgment at the rate in effect at the time judgment is entered.

 

DEFAULT.
Each of the following shall constitute an event of default (“Event of Default”) under this Note:

 

Payment
Default. Borrower fails to make any payment when due under this Note.

 

     

     

    

 

	Loan
    No: 4400853	PROMISSORY
NOTE
	Page
    2
	 	(Continued)	 

 

 

 

Other
Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this
Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained
in any other agreement between Lender and Borrower.

 

Default
in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase
or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s
property or Borrower’s ability to repay this Note or perform Borrower’s obligations under this Note or any of the related documents.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under
this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

 

Insolvency.
The dissolution or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment of
a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or
the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

 

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the
loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event
of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which
is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture
proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation
party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes
or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

 

Change
In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse
Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or
performance of this Note is impaired.

 

Insecurity.
Lender in good faith believes itself insecure.

 

LENDER’S
RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest
immediately due, and then Borrower will pay that amount.

 

ATTORNEYS’
FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay
Lender that amount. This includes, subject to any limits under applicable law, Lender’s reasonable attorneys’ fees and Lender’s
legal expenses, whether or not there is a lawsuit, including reasonable attorneys’ fees, expenses for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also
will pay any court costs, in addition to all other sums provided by law.

 

JURY
WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either
Lender or Borrower against the other.

 

GOVERNING
LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of North Carolina without regard to its conflicts of law provisions. This Note has been accepted by Lender in the
State of North Carolina.

 

CHOICE
OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of Mecklenburg
County County, State of North Carolina.

 

DISHONORED
ITEM FEE. Borrower will pay a fee to Lender of $7.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized
charge with which Borrower pays is later dishonored.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with Lender
(whether checking, savings, or some other account). This includes all accounts Borrower may open in the future. However, this
does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes
Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the debt against any and all such accounts,
and, at Lender’s option, to administratively freeze all such accounts to allow Lender to protect Lender’s charge and setoff rights
provided in this paragraph.

 

     

     

    

 

	Loan
    No: 4400853	PROMISSORY
NOTE
	Page
    3
	 	(Continued)	 

  

 

 

COLLATERAL.
This loan is unsecured.

 

ARBITRATION.
Borrower and Lender agree that all disputes, claims and controversies between them whether individual, joint, or class in nature,
arising from this Note or otherwise, including without limitation contract and tort disputes, shall be arbitrated pursuant to
the Rules of the American Arbitration Association in effect at the time the claim is filed, upon request of either party. No act
to take or dispose of any collateral securing this Note shall constitute a waiver of this arbitration agreement or be prohibited
by this arbitration agreement. This includes, without limitation, obtaining injunctive relief or a temporary restraining order;
invoking a power of sale under any deed of trust or mortgage; obtaining a writ of attachment or imposition of a receiver; or exercising
any rights relating to personal property, including taking or disposing of such property with or without judicial process pursuant
to Article 9 of the Uniform Commercial Code. Any disputes, claims, or controversies concerning the lawfulness or reasonableness
of any act, or exercise of any right, concerning any collateral securing this Note, including any claim to rescind, reform, or
otherwise modify any agreement relating to the collateral securing this Note, shall also be arbitrated, provided however that
no arbitrator shall have the right or the power to enjoin or restrain any act of any party. Judgment upon any award rendered by
any arbitrator may be entered in any court having jurisdiction. Nothing in this Note shall preclude any party from seeking equitable
relief from a court of competent jurisdiction. The statute of limitations, estoppel, waiver, laches, and similar doctrines which
would otherwise be applicable in an action brought by a party shall be applicable in any arbitration proceeding, and the commencement
of an arbitration proceeding shall be deemed the commencement of an action for these purposes. The Federal Arbitration Act shall
apply to the construction, interpretation, and enforcement of this arbitration provision.

 

PAYROLL
TAX DOCUMENTATION ACKNOWLEDGEMENT. I acknowledge that the lender will confirm the eligible loan amount using tax documents
I have submitted. I affirm that these tax documents are identical to those submitted to the Internal Revenue Service. I also understand,
acknowledge, and agree that the Lender can share the tax information with SBA’s authorized representatives, including authorized
representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all
SBA reviews.

 

DEBT
FOREGIVENESS PROVISION. The Principal Amount under the Paycheck Protection Program (PPP) will be forgiven as long as:

 

The
loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after
the loan is made; and employee and compensation levels are maintained.

 

The
Borrower will owe money when the loan is due if the Borrower uses the loan proceeds for anything other than payroll costs, mortgage
interest, rent and utility payments over the 8-week period after getting the loan. It is anticipated that not more than 25% of
the forgiven amount may be for non-pay-roll costs.

 

Borrower
will also owe money if they do not maintain their staff and payroll.

 

Number
of Staff: Borrower’s loan forgiveness will be reduced if Borrower decreases their full-time employee head count.

 

Level
of Payroll: Borrower’s loan forgiveness will be reduced if Borrower decreases salaries and wages by more than 25%
for any employee that made less than $100,000 annualized in 2019.

 

Re-Hiring:
Borrower has until June 30, 2020 to restore their full-time employment and salary levels for any changes made between
February 15, 2020 and April 26, 2020.

 

     

     

    

   

	Loan
    No: 4400853	PROMISSORY
NOTE
	Page
    4
	 	(Continued)	 

  

 

 

What
happens if PPP loan funds are misused?

 

If
you use PPP funds for unauthorized purposes, SBA will direct you to repay those amounts. If you knowingly use the funds for unauthorized
purposes, you will be subject to additional liability such as charges for fraud. If one of your shareholders, members, or partners
uses PPP funds for unauthorized purposes, SBA will have recourse against the shareholder, member, or partner for the unauthorized
use.

 

REQUESTING
DEBT FOREGIVENESS PROVISION. Borrower will need to submit a written request to Lender along with supporting documentation
that verify the number of full-time equivalent employees and pay rates, as well as the payments made on eligible mortgage, lease,
and utility obligations.

 

Borrower
must certify that the documents are true and that Borrower used the forgiveness amount to keep employees and make eligible mortgage,
interest, rent and utility payments.

 

Lender
will have sixty (60) days to make a decision on debt forgiveness.

 

In
the event Borrower’s debt is not entirely forgiven, the Lender will in its sole and absolute discretion, upon written notice
from Borrower, re-amortize the debt over any remaining amortization period.

 

AQUESTA
BANK SBA PPP NOTE ADDENDUM. An exhibit, titled “Aquesta Bank SBA PPP Note Addendum,” is attached to this Note and
by this reference is made a part of this Note just as if all the provisions, terms and conditions of the Exhibit had been fully
set forth in this Note.

 

SUCCESSOR
INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives, successors
and assigns, and shall inure to the benefit of Lender and its successors and assigns.

 

NOTIFY
US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender if Lender reports any inaccurate
information about Borrower’s account(s) to a consumer reporting agency. Borrower’s written notice describing the specific inaccuracy(ies)
should be sent to Lender at the following address: Aquesta Bank Attn: Loan Operations P.O. Box 700 Cornelius, NC 28031.

 

GENERAL
PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude
Lender’s right to declare payment of this Note on its demand. If any part of this Note cannot be enforced, this fact will not
affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing
them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment,
demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in
writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability.
All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party
or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s security interest in the collateral; and take
any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender
may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

 

PRIOR
TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE.

 

BORROWER
AGREES TO THE TERMS OF THE NOTE.

 

BORROWER
ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

BORROWER:

 

	MANUFACTURED HOUSING PROPERTIES, INC.	 
	 	 	 
	By:	/s/
    Raymond M. Gee	 
	 	Raymond
    M. Gee, CEO of Manufactured Housing Properties, Inc.	 

 

LaserPro, Ver. 19.2.0.042
Copr. Finastra USA Corporation 1997, 2020. All Rights Reserved. - NC L:\CFI\LPL\D20.FC TR-3090 PR-3 

 

     

     

    

  

AQUESTA
BANK SBA PPP NOTE ADDENDUM

 

	
        Principal

        $139,300.00
	
        Loan Date

        05-01-2020
	
        Maturity

        05-01-2022
	
        Loan No

        4400853
	
        Call / Coll

        4a / 01
	
        Account

        MAA1403
	
        Officer

        ***
	Initials
	
        References in the
        boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

        Any item above
        containing “***” has been omitted due to text length limitations.

 

	Borrower:	Manufactured
    Housing Properties, Inc.	 	Lender:	Aquesta
    Bank 
	 	136 Main Street	 	 	SBA
	 	Pineville,
    NC 28134-0000	 	 	P.O.
    Box 700
	 	 	 	 	Cornelius,
    NC 28031
	 	 	 	 	(704)
    439-4343

   

 

 

This
AQUESTA BANK SBA PPP NOTE ADDENDUM is attached to and by this reference is made a part of the Promissory Note, dated May 1, 2020,
and executed in connection with a loan or other financial accommodations between AQUESTA BANK and Manufactured Housing Properties,
Inc.

 

Aquesta
Bank SBA PPP Note Addendum

 

SBA
Loan #: 13156973-06

 

SBA
Loan Name: Manufactured Housing Properties, Inc.

 

Operating
Company: Manufactured Housing Properties, Inc.

 

 1. DEFINITIONS:

 

“SBA”
means the Small Business Administration, an Agency of the United States of America.

 

“Loan”
means the loan evidenced by this Note.

 

“Loan
Documents” means the documents related to this loan signed by Borrower.

 

 2. DEFAULT:

 

Borrower
is in default under this Note if Borrower does not make payment when due under this Note, or if Borrower or Operating Company:
Fails to do anything required by this Note or other Loan Documents;

 

Defaults
on any other loan with Lender;

 

Does
not preserve, or account to Lender’s satisfaction for its proceeds;

 

Does
not disclose, or anyone acting on their behalf does not disclose, and material fact to Lender or SBA; Makes, or anyone acting
on their behalf makes, a materially false or misleading representation to Lender or SBA;

 

Defaults
on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s ability
to pay this Note; Fails to pay any taxes when due;

 

Becomes
the subject of a proceeding under any bankruptcy or insolvency law; Has a receiver or liquidator appointed for any part of their
business or property; Makes an assignment for the benefit of creditors;

 

Reorganizes,
merges, consolidates or otherwise changes ownership or business structure without Lender’s prior written consent; or Becomes
the subject of a civil or criminal action Lender believes may materially affect the Borrower’s ability to pay this Note.

 

     

     

    

 

AQUESTA
BANK SBA PPP NOTE ADDENDUM 

	Loan
    No: 4400853	(Continued)	Page
    2

 

 

 

 3. WHEN FEDERAL LAW APPLIES:

 

When
SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may
use state and local procedures for fling papers, recording documents, giving notice, foreclosing liens, and other purposes. By
using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to
this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA
or preempt federal law.

 

 4. SUCCESSORS AND ASSIGNS:

 

Under
this Note, Borrower and Operating Company include the successors of each, and Lender includes its successors and assigns.

 

 5. GENERAL PROVISIONS:

 

All
individuals and entities signing this Note are jointly and severally liable; Borrower waives all suretyship defenses;

 

Lender
may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing
any of its rights without giving up any of them.

 

Borrower
may not use an oral statement of the Lender or SBA to contradict or alter the written terms of this Note. If any part of this
Note is unenforceable, all other parts remain in effect.

 

To
the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand,
protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee,
did not obtain, perfect, or maintain a lien on Collateral; impaired Collateral; or did not obtain the fair market value of Collateral
at a sale.

 

     

     

    

 

AQUESTA
BANK SBA PPP NOTE ADDENDUM 

	Loan
    No: 4400853	(Continued)	Page
    3

 

 

 

THIS
AQUESTA BANK SBA PPP NOTE ADDENDUM IS EXECUTED ON MAY 1, 2020.

 

BORROWER:

 

	MANUFACTURED HOUSING PROPERTIES, INC.	 
	 	 	 
	By:	/s/
    Raymond M. Gee	 
	 	Raymond
    M. Gee, CEO of Manufactured Housing Properties, Inc.	 
	 	 	 

 

LaserPro, Ver. 19.2.0.042
Copr. Finastra USA Corporation 1997, 2020. All Rights Reserved. - NC L:\CFI\LPL\D20.FC TR-3090 PR-3Exhibit

Exhibit 4.1

TUCSON ELECTRIC POWER COMPANY
OFFICER’S CERTIFICATE
Martha B. Pritz, the Treasurer of Tucson Electric Power Company, an Arizona corporation (the “Company”), pursuant to the authority granted in the Board Resolutions of the Company dated August 3, 2020, and Sections 102, 201 and 301 of the Indenture defined herein, does hereby certify to U.S. Bank National Association, as trustee (the “Trustee”) under the Indenture (For Unsecured Debt Securities) of the Company dated as of November 1, 2011 (the “Indenture”) that:
		
	1.
	The Securities of the seventh series to be issued under the Indenture shall be designated “1.500% Senior Notes due 2030” (the “Notes”).  All capitalized terms used in this certificate which are not defined herein shall have the meanings set forth in Exhibit A hereto; all capitalized terms used in this certificate which are not defined herein or in Exhibit A hereto shall have the meanings set forth in the Indenture.

		
	2.
	The Notes shall be issued by the Company in the initial aggregate principal amount of $300,000,000.  As contemplated by the last paragraph of Section 301 of the Indenture, additional Notes, without limitation as to amount, having the same terms as the Outstanding Notes (except a different issue date and bearing interest from the last Interest Payment Date to which interest has been paid or duly provided for on the Outstanding Notes, and, if no interest has been paid, from August 10, 2020), may also be issued by the Company pursuant to the Indenture without the consent of the existing Holders of the Notes.  Such additional Notes shall be part of the same series as the Outstanding Notes.

		
	3.
	The Notes shall mature and the principal thereof shall be due and payable together with all accrued and unpaid interest thereon on August 1, 2030.

		
	4.
	The Notes shall bear interest as provided in the form thereof set forth in Exhibit A hereto.  

		
	5.
	The principal of and premium, if any, and each installment of interest on the Notes shall be payable upon presentation of the Notes at the office or agency of the Company in the City of New York; provided that payment of principal, premium, if any, and each installment of interest may be made at the option of the Company by check mailed to the address of the persons entitled thereto or by wire transfer to an account designated by the person entitled thereto; and provided further that after payment of the Notes in full, the Holders thereof shall promptly surrender such Notes at the office or agency of the Company in the City of New York.  Notices and demands to or upon the Company in respect of the Notes and the Indenture may be served at the office or agency of the Company in the City of New York.  The Corporate Trust Office of the Trustee will initially be the agency of the Company for such payment and service of notices and demands and the Company hereby appoints U.S. Bank National Association as its agent for all such purposes; provided, however, that the Company reserves the right to change, by one or more Officer’s Certificates, any such office or agency and such agent.  The registration and registration of transfers and exchanges in respect of the Notes may be 

effected at the Corporate Trust Office of the Trustee.  The Trustee will initially be the Security Registrar and the Paying Agent for the Notes.
		
	6.
	The Notes will be redeemable at the option of the Company prior to the Stated Maturity of the principal thereof as provided in the form thereof set forth in Exhibit A hereto.

		
	7.
	No service charge shall be made for the registration of transfer or exchange of the Notes; provided, however, that the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the exchange or transfer.

		
	8.
	If the Company shall make any deposit of money and/or Eligible Obligations with respect to any Notes, or any portion of the principal amount thereof, as contemplated by Section 701 of the Indenture, the Company shall not deliver an Officer’s Certificate described in clause (z) in the first paragraph of said Section 701 unless the Company shall also deliver to the Trustee, together with such Officer’s Certificate, either:

(A)    an instrument wherein the Company, notwithstanding the satisfaction and discharge of its indebtedness in respect of the Notes, shall assume the obligation (which shall be absolute and unconditional) to irrevocably deposit with the Trustee or Paying Agent such additional sums of money, if any, or additional Eligible Obligations (meeting the requirements of Section 701), if any, or any combination thereof, at such time or times, as shall be necessary, together with the money and/or Eligible Obligations theretofore so deposited, to pay when due the principal of and premium, if any, and interest due and to become due on such Notes or portions thereof, all in accordance with and subject to the provisions of said Section 701; provided, however, that such instrument may state that the obligation of the Company to make additional deposits as aforesaid shall be subject to the delivery to the Company by the Trustee of a notice asserting the deficiency accompanied by an opinion of an independent public accountant of nationally recognized standing, selected by the Trustee, showing the calculation thereof; or
(B)    an Opinion of Counsel to the effect that, as a result of a change in law occurring after the date of this certificate, the Holders of such Notes, or portions of the principal amount thereof, will not recognize income, gain or loss for United States federal income tax purposes as a result of the satisfaction and discharge of the Company’s indebtedness in respect thereof and will be subject to United States federal income tax on the same amounts, at the same times and in the same manner as if such satisfaction and discharge had not been effected.
		
	9.
	The Eligible Obligations with respect to the Notes will be Government Obligations.

		
	10.
	The Notes will be Benefitted Securities and shall have the benefit of the covenant contained in Section 605 of the Indenture.

		
	11.
	The Notes shall have such other terms and provisions as are provided in the form thereof set forth in Exhibit A hereto, and shall be issued in substantially such form.

2

		
	12.
	Each initial and future holder of the Notes, by its acquisition of an interest in such Notes, irrevocably (a) consents to the amendment of  the Indenture to restate the definition of “Capital Lease Obligations” contained in Section 605 of the Indenture to read substantially as set forth below without any other or further action by any such holder of such Notes, and (b) designates the Trustee, and its successors, as its proxy with irrevocable instructions to vote and deliver a written consent on behalf of such holder in favor of such amendment at any noteholder meeting or, in lieu of any noteholder meeting, in any consent solicitation or otherwise:

“Capital Lease Obligations” means (i) obligations required to be recognized as lease liabilities on the Company’s consolidated balance sheet in respect of any lease agreement (including any lease intended as security) of the Company of a character that, under generally accepted accounting principles, is required to be classified as a finance lease (or similar classification), but not as an operating lease (or similar classification), and (ii) without duplication, the Existing Capital Lease Obligations however any related lease is so required to be classified.
		
	13.
	The Notes will be initially issued in global form registered in the name of Cede & Co., as registered owner and as nominee for DTC, the initial securities depository for the Notes; provided, that the Company reserves the right to provide for another depository, registered as a clearing agency under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to act as depository for the global Notes (DTC and any such successor depository, the “Depository”); beneficial interests in Notes issued in global form may not be exchanged in whole or in part for individual certificated Notes in definitive form, and no transfer of a global Note in whole or in part may be registered in the name of any Person other than the Depository or its nominee except that (i) if the Depository (A) has notified the Company that it is unwilling or unable to continue as depository for the global Notes or (B) has ceased to be a clearing agency registered under the Exchange Act or other applicable statute or regulation and, in either case, a successor depository for such global Notes has not been appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, (ii) if the Company, in its sole discretion, determines that the Notes will no longer be represented by Notes in global form or (iii) if an Event of Default with respect to the Notes has occurred and is continuing, the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Notes, will authenticate and deliver Notes in definitive certificated form in an aggregate principal amount equal to the principal amount of the global Notes representing such Notes in exchange for such global Notes, such definitive Notes to be registered in the names provided by the Depository to the Trustee; each global Note (i) shall represent and shall be denominated in an amount equal to the aggregate principal amount of the Outstanding Notes to be represented by such global Note, (ii) shall be registered in the name of the Depository or its nominee, (iii) shall be delivered by the Trustee to the Depository, its nominee, any custodian for the Depository or otherwise pursuant to the Depository’s instructions and (iv) shall bear a legend restricting the transfer of such global Note to any person other than the Depository or its nominee; none of the Company, the Trustee, any Paying Agent 

3

or any Authenticating Agent will have any responsibility or liability for any aspect of the records relating to, payments made on account of, or transfers in respect of, beneficial ownership interests in a global Note (all of which will be conducted pursuant to the customary procedures of the Depository) or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
		
	14.
	(a)    The undersigned has read all of the covenants and conditions contained in the Indenture, and the definitions in the Indenture relating thereto, relating to the issuance, authentication and delivery of the Notes and in respect of compliance with which this certificate is made;

(b)    The statements contained in this certificate are based upon the familiarity of the undersigned with the Indenture, the documents accompanying this certificate, and upon discussions by the undersigned with officers and employees of the Company familiar with the matters set forth herein;
(c)    In the opinion of the undersigned, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenants and conditions have been complied with; and
(d)    In the opinion of the undersigned, such conditions and covenants and conditions precedent provided for in the Indenture (including any covenants compliance with which constitutes a condition precedent) relating to the authentication and delivery of the Notes requested in the accompanying Company Order No. 7, have been complied with.

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IN WITNESS WHEREOF, I have executed this Officer’s Certificate this 10th day of August, 2020.

/s/ Martha B. Pritz             
Martha B. Pritz 
Treasurer

EXHIBIT A
[Unless this certificate is presented by an authorized representative of The Depository Trust Company, a limited-purpose trust company organized under the New York Banking Law (“DTC”), to Tucson Electric Power Company 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 DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.]
	
		
	No. R-
	CUSIP:

	 
	 

[FORM OF FACE OF NOTE]
TUCSON ELECTRIC POWER COMPANY
1.500% SENIOR NOTE DUE 2030
Tucson Electric Power Company, a corporation duly organized and existing under the laws of the State of Arizona (herein referred to as the “Company,” 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 August 1, 2030, and to pay interest on said principal sum semi-annually on February 1 and August 1 of each year commencing February 1, 2021 (each an Interest Payment Date) at the rate of 1.500% per annum, until the principal hereof is paid or made available for payment and to pay interest on any overdue principal and, to the extent permitted by law, interest, at the rate then borne by the Securities of this series.  Interest on the Securities of this series will accrue from, and include, August 10, 2020, to the first Interest Payment Date, and thereafter will accrue from the last Interest Payment Date to which interest has been paid or duly provided for.  In the event that any Interest Payment Date is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of such delay) with the same force and effect, and in the same amount, as if made on the Interest Payment Date.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this 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 close of business on (i) the Business Day next preceding such Interest Payment Date so long as the Securities are held by a securities depository in book-entry form, or (ii) if the Securities are not held by a securities depository in book‐entry form, the 15th calendar day next preceding such Interest Payment Date, provided, however, that interest payable at Maturity will be paid to the Person to whom principal is paid.  

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Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this 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 the Indenture.
Payment of the principal of and premium, if any, and interest on this Security will be made upon presentation at the office or agency of the Company maintained for that purpose in the City of New York, the State 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 Company, the principal of and premium, if any, and interest on this Security may be paid by check mailed to the address of the person entitled thereto, as such address shall appear on the Security Register or by wire transfer to an account designated by the person entitled thereto; and provided, further, that, after payment in full of this Security the Holder shall promptly surrender this Security at the office or agency of the Company in the City of New York, the State of New York.
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.  Any capitalized term which is used herein and not otherwise defined shall have the meaning ascribed to such term in the Indenture.
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.

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IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.
TUCSON ELECTRIC POWER COMPANY 
 
 
By:      
        Martha B. Pritz
        Treasurer
        
[FORM OF CERTIFICATE OF AUTHENTICATION]
CERTIFICATE OF AUTHENTICATION 
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
Dated: 
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
		
	By:
	     
Authorized Signatory

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[FORM OF REVERSE OF NOTE]
General.
    
This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture (For Unsecured Debt Securities), dated as of November 1, 2011 (herein, together with any amendments thereto, called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture, including the Board Resolutions and Officer’s Certificate filed with the Trustee on August 10, 2020 creating the series designated on the face hereof, for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.

Optional Redemption.

At any time prior to May 1, 2030, the Securities of this series will be redeemable at the option of the Company (each a “Redemption Date”), in whole or in part, on not less than 30 nor more than 60 days’ notice prior to the Redemption Date.  If the Company redeems all or any part of the Securities of this series, it will pay a Redemption Price (the “Redemption Price”) equal to the greater of:

(1) 100% of the principal amount of the Securities of this series being redeemed, and
(2) the sum of the present values of the remaining scheduled payments of principal of and interest on the Securities of this series being redeemed (assuming, for this purpose, that the Securities of this series were stated to mature on May 1, 2030 and excluding the portion of any such interest accrued to the Redemption Date), discounted (for purposes of determining such present values) to the Redemption Date on a semi-annual basis (assuming a 360‐day year consisting of twelve 30‐day months) at the Adjusted Treasury Rate plus 15 basis points, all as determined by the Independent Investment Banker,
plus, in each case, accrued and unpaid interest on the Securities of this series being redeemed to the Redemption Date.
At any time on or after May 1, 2030, the Securities of this series will be redeemable at the option of the Company, in whole or in part, on not less than 30 nor more than 60 days’ notice prior to the Redemption Date, at the Redemption Price equal to 100% of the principal amount of the Securities of this series to be redeemed, plus accrued and unpaid interest thereon to the Redemption Date.
“Adjusted Treasury Rate” means, with respect to any Redemption Date:

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(1) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining term of the Securities of this series (assuming, for this purpose, that the Securities of this series were stated to mature on May 1, 2030), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or 
(2) if such release (or any successor release) is not published during the week preceding the calculation date for the Adjusted Treasury Rate or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.  
The Adjusted Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date.
“Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the Securities of this series (assuming, for this purpose, that the Securities of this series were stated to mature on May 1, 2030) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to such remaining term of the Securities of this series (assuming, for this purpose, that the Securities of this series were stated to mature on May 1, 2030).
“Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of five Reference Treasury Dealer Quotations for such Redemption Date after excluding the highest and lowest such Reference Treasury Dealer Quotations or (2) if the Independent Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.
“Independent Investment Banker” means one of the Reference Treasury Dealers that the Company appoints to act as the Independent Investment Banker from time to time or, if any of such firms are unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company.
“Reference Treasury Dealer” means a primary U.S. Government securities dealer appointed by the Company.

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“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.
The Company shall deliver to the Trustee before any Redemption Date for the Securities of this series its calculation of the Redemption Price applicable to such redemption.  The Trustee shall be under no duty to inquire into, may presume the correctness of, and shall be fully protected in acting upon the Company’s calculation of any Redemption Price of the Securities of this series.
In lieu of stating the Redemption Price, notices of redemption of the Securities of this series pursuant to the first paragraph under “Optional Redemption” shall state substantially the following:  “The Redemption Price of the Securities of this series to be redeemed shall equal the sum of (a) the greater of (i) 100% of the principal amount of such Securities of this series, or (ii) as determined by the Independent Investment Banker, the sum of the present values of the remaining scheduled payments of principal of and interest on the Securities of this series being redeemed (excluding the portion of any such interest accrued to the Redemption Date), discounted (for purposes of determining such present values) to the Redemption Date on a semi-annual basis (assuming a 360‐day year consisting of twelve 30‐day months) at the Adjusted Treasury Rate plus 15 basis points.”
If less than all of the Securities of this series are to be redeemed consistent with the terms hereof, the particular Securities to be redeemed shall be selected by the Trustee from the Outstanding Securities of such series in a manner it deems fair and appropriate.
If at the time notice of redemption is given, the redemption moneys are not on deposit with the Trustee, then the redemption shall be subject to their receipt on or before the Redemption Date and such notice shall be of no effect unless such moneys are received.
Upon 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.
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 including the Officer’s Certificate described above.
Events of Default.

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.
Governing Law.

6

This Security shall be governed by and construed in accordance with the laws of the State of New York (including without limitation Section 5‐1401 of the New York General Obligations Law or any successor statute), except to the extent that the law of any other jurisdiction shall be mandatorily applicable.
Modification and Waivers.

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of all series to be affected.  The Indenture contains provisions permitting the Holders of a majority in aggregate principal amount of the Securities of all series then Outstanding to waive compliance by the Company with certain provisions of the Indenture.  The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  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 a majority in aggregate principal amount of the Securities of all series at the time Outstanding in respect of which an Event of Default shall have occurred and be continuing shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request, and the Trustee shall not have received from the Holders of a majority in aggregate principal amount of Securities of all series at the time Outstanding in respect of which an Event of Default shall have occurred and be continuing a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit instituted by the Holder of this 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 Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

7

Authorized Denominations.

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

The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the absolute owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.
Consent.

Each initial and future holder of this Security, by its acquisition of an interest in this Security, irrevocably (a) consents to the amendment of the Indenture set forth in Paragraph 12 of the Officer’s Certificate establishing the terms of the Securities of this series without any other or further action by any such holder of this Security, and (b) designates the Trustee, and its successors, as its proxy with irrevocable instructions to vote and to deliver a written consent on behalf of such holder in favor of such amendment at any noteholder meeting or, in lieu of any noteholder meeting, in any consent solicitation or otherwise.
Defined Terms.

All terms used in this Security which are defined in Indenture shall have the meanings assigned to them in the Indenture and in the Officer’s Certificate establishing the terms of the Securities of this series.

8

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