Document:

Exhibit 4.1

 

ONE HUNDRED THIRTY-FOURTH SUPPLEMENTAL INDENTURE

 

Providing among other things for

 

FIRST MORTGAGE BONDS,

 

$300,000,000 3.80% Series due 2028

$550,000,000 4.35% Series due 2049

 

Dated as of November 13, 2018

 

 

CONSUMERS ENERGY COMPANY

 

TO

 

THE BANK OF NEW YORK MELLON,

 

TRUSTEE

 

Counterpart       of 80

 

 

THIS ONE HUNDRED THIRTY-FOURTH SUPPLEMENTAL INDENTURE, dated as of November 13, 2018 (herein sometimes referred to as “this Supplemental Indenture”), made and entered into by and between CONSUMERS ENERGY COMPANY, a corporation organized and existing under the laws of the State of Michigan, with its principal executive office and place of business at One Energy Plaza, in Jackson, Jackson County, Michigan 49201, formerly known as Consumers Power Company (hereinafter sometimes referred to as the “Company”), and THE BANK OF NEW YORK MELLON (formerly known as The Bank of New York), a New York banking corporation, with its corporate trust offices at 240 Greenwich Street, New York, New York 10286 (hereinafter sometimes referred to as the “Trustee”), as Trustee under the Indenture dated as of September 1, 1945 between Consumers Power Company, a Maine corporation (hereinafter sometimes referred to as the “Maine corporation”), and City Bank Farmers Trust Company (Citibank, N.A., successor, hereinafter sometimes referred to as the “Predecessor Trustee”), securing bonds issued and to be issued as provided therein (hereinafter sometimes referred to as the “Indenture”),

 

WHEREAS, at the close of business on January 30, 1959, City Bank Farmers Trust Company was converted into a national banking association under the title “First National City Trust Company”; and

 

WHEREAS, at the close of business on January 15, 1963, First National City Trust Company was merged into First National City Bank; and

 

WHEREAS, at the close of business on October 31, 1968, First National City Bank was merged into The City Bank of New York, National Association, the name of which was thereupon changed to First National City Bank; and

 

WHEREAS, effective March 1, 1976, the name of First National City Bank was changed to Citibank, N.A.; and

 

WHEREAS, effective July 16, 1984, Manufacturers Hanover Trust Company succeeded Citibank, N.A. as Trustee under the Indenture; and

 

WHEREAS, effective June 19, 1992, Chemical Bank succeeded by merger to Manufacturers Hanover Trust Company as Trustee under the Indenture; and

 

WHEREAS, effective July 15, 1996, The Chase Manhattan Bank (National Association) merged with and into Chemical Bank which thereafter was renamed The Chase Manhattan Bank; and

 

WHEREAS, effective November 11, 2001, The Chase Manhattan Bank merged with Morgan Guaranty Trust Company of New York and the surviving corporation was renamed JPMorgan Chase Bank; and

 

WHEREAS, effective November 13, 2004, the name of JPMorgan Chase Bank was changed to JPMorgan Chase Bank, N.A.; and

 

WHEREAS, effective April 7, 2006, The Bank of New York succeeded JPMorgan Chase Bank, N.A. as Trustee under the Indenture; and

 

1

 

WHEREAS, effective July 1, 2008, the name of The Bank of New York was changed to The Bank of New York Mellon; and

 

WHEREAS, the Indenture was executed and delivered for the purpose of securing such bonds as may from time to time be issued under and in accordance with the terms of the Indenture, the aggregate principal amount of bonds to be secured thereby being limited to $11,000,000,000 at any one time outstanding (except as provided in Section 2.01 of the Indenture), and the Indenture describes and sets forth the property conveyed thereby and is filed in the Office of the Secretary of State of the State of Michigan and is of record in the Office of the Register of Deeds of each county in the State of Michigan in which this Supplemental Indenture is to be recorded; and

 

WHEREAS, the Indenture has been supplemented and amended by various indentures supplemental thereto, each of which is filed in the Office of the Secretary of State of the State of Michigan and is of record in the Office of the Register of Deeds of each county in the State of Michigan in which this Supplemental Indenture is to be recorded; and

 

WHEREAS, the Company and the Maine corporation entered into an Agreement of Merger and Consolidation, dated as of February 14, 1968, which provided for the Maine corporation to merge into the Company; and

 

WHEREAS, the effective date of such Agreement of Merger and Consolidation was June 6, 1968, upon which date the Maine corporation was merged into the Company and the name of the Company was changed from “Consumers Power Company of Michigan” to “Consumers Power Company”; and

 

WHEREAS, the Company and the Predecessor Trustee entered into a Sixteenth Supplemental Indenture, dated as of June 4, 1968, which provided, among other things, for the assumption of the Indenture by the Company; and

 

WHEREAS, said Sixteenth Supplemental Indenture became effective on the effective date of such Agreement of Merger and Consolidation; and

 

WHEREAS, the Company has succeeded to and has been substituted for the Maine corporation under the Indenture with the same effect as if it had been named therein as the mortgagor corporation; and

 

WHEREAS, effective March 11, 1997, the name of Consumers Power Company was changed to Consumers Energy Company; and

 

WHEREAS, the Indenture provides for the issuance of bonds thereunder in one or more series, and the Company, by appropriate corporate action in conformity with the terms of the Indenture, has duly determined to create, and does hereby create, a new series of bonds under the Indenture designated 3.80% Series due 2028, which bonds shall also bear the descriptive title “First Mortgage Bonds” (hereinafter provided for and hereinafter sometimes referred to as the “2028 Bonds”), the bonds of which series are to be issued as registered bonds without coupons and are to bear interest at the rate per annum specified in the title thereof and are to mature on November 15, 2028; and

 

2

 

WHEREAS, the Indenture provides for the issuance of bonds thereunder in one or more series, and the Company, by appropriate corporate action in conformity with the terms of the Indenture, has duly determined to create, and does hereby create, a new series of bonds under the Indenture designated 4.35% Series due 2049, which bonds shall also bear the descriptive title “First Mortgage Bonds” (hereinafter provided for and hereinafter sometimes referred to as the “2049 Bonds”), the bonds of which series are to be issued as registered bonds without coupons and are to bear interest at the rate per annum specified in the title thereof and are to mature on April 15, 2049; and

 

WHEREAS, the Company and Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, and MUFG Securities Americas Inc., as Representatives of the Underwriters named therein (the “Underwriters”), have entered into an Underwriting Agreement dated October 29, 2018 (the “Underwriting Agreement”), pursuant to which the Company agreed to sell and the Underwriters agreed to buy $300,000,000 in aggregate principal amount of 2028 Bonds and $550,000,000 in aggregate principal amount of 2049 Bonds (such 2028 Bonds and 2049 Bonds, collectively the “Bonds”); and

 

WHEREAS, each of the registered bonds without coupons of the 2028 Bonds and the Trustee’s Authentication Certificate thereon, and each of the registered bonds without coupons of the 2049 Bonds and the Trustee’s Authentication Certificate thereon, are to be substantially in the following forms, respectively, to wit:

 

{FORM OF REGISTERED BOND OF THE 2028 BONDS}

 

THIS BOND IS A GLOBAL BOND REGISTERED IN THE NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE THEREOF AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL BONDS REPRESENTED HEREBY, THIS GLOBAL BOND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS GLOBAL BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK), A NEW YORK CORPORATION (THE “DEPOSITARY”), TO THE TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

3

 

CONSUMERS ENERGY COMPANY
 FIRST MORTGAGE BOND
 3.80% SERIES DUE 2028

 

	
CUSIP:
    	
$                     
    
	
ISIN:
    	
 
    

 

No.:

 

CONSUMERS ENERGY COMPANY, a Michigan corporation (hereinafter called the “Company”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of                 Dollars ($         ) on November 15, 2028 (the “2028 Stated Maturity”), and to pay to the registered holder hereof interest on said sum from and including the latest semi-annual interest payment date to which interest has been paid or duly made available for payment on the bonds of this series preceding the date hereof, unless the date hereof be an interest payment date to which interest is being paid, in which case from and including the date hereof, or unless the date hereof is prior to May 15, 2019 in which case from and including November 13, 2018 (or if this bond is dated between the record date for any interest payment date and such interest payment date, then from and including such interest payment date, provided, however, that if the Company shall default in payment of the interest due on such interest payment date, then from and including the next preceding semi-annual interest payment date to which interest has been paid or duly made available for payment on the bonds of this series, or if such interest payment date is May 15, 2019, from and including November 13, 2018), in each case to but excluding the next succeeding interest payment date or the date of maturity, as the case may be, at the rate per annum, until the principal hereof is paid or duly made available for payment, specified in the title of this bond, payable on May 15 and November 15 in each year.  The provisions of this bond are continued below and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This bond shall not be valid or become obligatory for any purpose unless and until it shall have been authenticated by the execution by the Trustee or its successor in trust under the Indenture of the certificate hereon.

 

IN WITNESS WHEREOF, Consumers Energy Company has caused this bond to be executed in its name by its Chairman of the Board, its President or one of its Vice Presidents by his or her signature or a facsimile thereof, and its corporate seal or a facsimile thereof to be affixed hereto or imprinted hereon and attested by its Secretary or one of its Assistant Secretaries by his or her signature or a facsimile thereof.

 

	
 
    	
CONSUMERS   ENERGY COMPANY
    
	
 
    	
 
    
	
Dated:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Printed:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    	
 
    
					

 

4

 

TRUSTEE’S AUTHENTICATION CERTIFICATE

 

This is one of the bonds, of the series designated therein, described in the within-mentioned Indenture.

 

	
 
    	
THE   BANK OF NEW YORK MELLON,

Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Officer
    

 

CONSUMERS ENERGY COMPANY

 

FIRST MORTGAGE BOND
 3.80% SERIES DUE 2028

 

The interest payable on any May 15 or November 15 will, subject to certain exceptions provided in the Indenture hereinafter mentioned, be paid to the person in whose name this bond is registered at 5:00 p.m., New York City time, on the record date, which shall be the May 1 or November 1 (whether or not such May 1 or November 1 shall be a legal holiday or a day on which banking institutions in the Borough of Manhattan, The City of New York, are authorized to close) preceding the relevant interest payment date, except that interest payable at the 2028 Stated Maturity shall be paid to the person to whom the principal amount is paid.  The initial interest payment date will be May 15, 2019.  The principal of and the premium, if any, and interest on this bond shall be payable at the office or agency of the Company in the Borough of Manhattan, The City of New York, designated for that purpose, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts.

 

This bond is one of the bonds of a series designated as First Mortgage Bonds, 3.80% Series due 2028 (sometimes herein referred to as the “2028 Bonds” or the “Bonds”) issued under and in accordance with and secured by an indenture dated as of September 1, 1945, given by the Company (or its predecessor, Consumers Power Company, a Maine corporation) to City Bank Farmers Trust Company (The Bank of New York Mellon, successor) (hereinafter sometimes referred to as the “Trustee”), together with indentures supplemental thereto, heretofore or hereafter executed, to which indenture and indentures supplemental thereto (hereinafter referred to collectively as the “Indenture”) reference is hereby made for a description of the property mortgaged and pledged, the nature and extent of the security and the rights, duties and immunities thereunder of the Trustee and the rights of the holders of said bonds and of the Trustee and of the Company in respect of such security, and the limitations on such rights. By the terms of the Indenture, the bonds to be secured thereby are issuable in series which may vary as to date, amount, date of maturity, rate of interest and in other respects as provided in the Indenture.

 

Any or all of the 2028 Bonds may be redeemed by the Company at its option, in whole or in part, at any time and from time to time prior to maturity at a redemption price equal

 

5

 

to 100% of the principal amount of such 2028 Bonds being redeemed plus, in the case of any redemption prior to the Par Call Date (as defined below), the Applicable Premium (as defined below), if any, thereon at the time of redemption, together with (at any time) accrued and unpaid interest, if any, thereon to, but not including, the redemption date.  In no event will the redemption price be less than 100% of the principal amount of the 2028 Bonds being redeemed plus accrued and unpaid interest, if any, thereon to, but not including, the redemption date.

 

“Par Call Date” means August 15, 2028.

 

“Applicable Premium” means, with respect to a 2028 Bond (or portion thereof) being redeemed at any time prior to the Par Call Date, the excess of (i) the present value at the redemption date of (A) the principal amount of such 2028 Bond (or portion thereof) being redeemed as though such 2028 Bond (or portion thereof) matured on the Par Call Date plus (B) all remaining scheduled interest payments on such 2028 Bond (or portion thereof) after such redemption date that would be due if such 2028 Bond matured on the Par Call Date (but, for the avoidance of doubt, excluding any portion of such payments of interest accrued to such redemption date), which present value shall be computed by the Company using a discount rate equal to the Treasury Rate (as defined below) plus 15 basis points, over (ii) the principal amount of such 2028 Bond (or portion thereof) being redeemed at such time.  For purposes of this definition, the present values of interest and principal payments will be determined in accordance with generally accepted principles of financial analysis.

 

“Treasury Rate” means the yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (the “Statistical Release”)) that has become publicly available at least two Business Days prior to the redemption date (or, if such Statistical Release is no longer published, any publicly available source of similar market data) most nearly equal to the then remaining average life to stated maturity of the 2028 Bonds being redeemed (assuming for this purpose that such 2028 Bonds matured on the Par Call Date); provided, however, that if the average life to stated maturity of the 2028 Bonds is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by the Company by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given.

 

If less than all of the 2028 Bonds are to be redeemed and (i) the 2028 Bonds are in global form, the interests in the 2028 Bonds to be redeemed shall be selected for redemption by The Depository Trust Company in accordance with The Depository Trust Company’s standard procedures therefor, or (ii) the 2028 Bonds are in definitive form, the Trustee shall select the 2028 Bonds to be redeemed by lot, on a pro rata basis or by another method the Trustee deems appropriate and fair.  Notice of redemption shall be delivered not less than 10 nor more than 60 days prior to the date fixed for redemption to the holders of the 2028 Bonds to be redeemed (which, as long as the 2028 Bonds are held in the book-entry only system, will be The Depository Trust Company (or its nominee) or a successor depositary (or the successor’s nominee)); provided, however, that the failure to duly deliver such notice, or any defect therein, shall not affect the validity of any proceedings for the redemption of the 2028 Bonds as to which there shall have been no such failure or defect.  On and after the date fixed for redemption

 

6

 

(unless the Company shall default in the payment of the 2028 Bonds or portions thereof to be redeemed at the applicable redemption price, together with accrued and unpaid interest, if any, thereon to, but not including, such date), interest on the 2028 Bonds or the portions thereof so called for redemption shall cease to accrue.

 

This bond is not redeemable by the operation of the maintenance and replacement provisions of the Indenture or with the proceeds of released property or in any other manner except as set forth above.

 

In case of certain defaults as specified in the Indenture, the principal of this bond may be declared or may become due and payable on the conditions, at the time, in the manner and with the effect provided in the Indenture.  The holders of certain specified percentages of the bonds at the time outstanding, including in certain cases specified percentages of bonds of particular series, may in certain cases, to the extent and as provided in the Indenture, waive certain defaults thereunder and the consequences of such defaults.

 

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than seventy-five per centum in principal amount of the bonds (exclusive of bonds disqualified by reason of the Company’s interest therein) at the time outstanding, including, if more than one series of bonds shall be at the time outstanding, not less than sixty per centum in principal amount of each series affected, to effect, by an indenture supplemental to the Indenture, modifications or alterations of the Indenture and of the rights and obligations of the Company and the rights of the holders of the bonds and coupons; provided, however, that no such modification or alteration shall be made without the written approval or consent of the holder hereof which will (a) extend the maturity of this bond or reduce the rate or extend the time of payment of interest hereon or reduce the amount of the principal hereof or reduce any premium payable on the redemption hereof, (b) permit the creation of any lien, not otherwise permitted, prior to or on a parity with the lien of the Indenture, or (c) reduce the aforesaid percentage of the principal amount of bonds the holders of which are required to approve any such supplemental indenture.

 

The Company reserves the right, without any consent, vote or other action by holders of the 2028 Bonds or any other series created after the Sixty-eighth Supplemental Indenture, to amend the Indenture to reduce the percentage of the principal amount of bonds the holders of which are required to approve any supplemental indenture (other than any supplemental indenture which is subject to the proviso contained in the immediately preceding sentence) (a) from not less than seventy-five per centum (including sixty per centum of each series affected) to not less than a majority in principal amount of the bonds at the time outstanding or (b) in case fewer than all series are affected, not less than a majority in principal amount of the bonds of all affected series, voting together.

 

No recourse shall be had for the payment of the principal of or premium, if any, or interest on this bond, or for any claim based hereon, or otherwise in respect hereof or of the Indenture, to or against any incorporator, stockholder, director or officer, past, present or future, as such, of the Company, or of any predecessor or successor company, either directly or through the Company, or such predecessor or successor company, or otherwise, under any constitution or statute or rule of law, or by the enforcement of any assessment or penalty, or otherwise, all such

 

7

 

liability of incorporators, stockholders, directors and officers, as such, being waived and released by the holder and owner hereof by the acceptance of this bond and being likewise waived and released by the terms of the Indenture.

 

{END OF FORM OF REGISTERED BOND OF THE 2028 BONDS}

 

 

{FORM OF REGISTERED BOND OF THE 2049 BONDS}

 

THIS BOND IS A GLOBAL BOND REGISTERED IN THE NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE THEREOF AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL BONDS REPRESENTED HEREBY, THIS GLOBAL BOND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS GLOBAL BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK), A NEW YORK CORPORATION (THE “DEPOSITARY”), TO THE TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

CONSUMERS ENERGY COMPANY
 FIRST MORTGAGE BOND
 4.35% SERIES DUE 2049

 

	
CUSIP:
    	
$                 
    
	
ISIN:
    	
 
    

 

No.:

 

CONSUMERS ENERGY COMPANY, a Michigan corporation (hereinafter called the “Company”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of                 Dollars ($         ) on April 15, 2049 (the “2049 Stated Maturity”), and to pay to the registered holder hereof interest on said sum from and including the latest semi-annual interest payment date to which interest has been paid or duly made available for payment on the bonds of this series preceding the date hereof, unless the date hereof be an interest payment date to which interest is being paid, in which case from and including the date hereof, or unless the date hereof is prior to April 15, 2019 in which case from

 

8

 

and including November 13, 2018 (or if this bond is dated between the record date for any interest payment date and such interest payment date, then from and including such interest payment date, provided, however, that if the Company shall default in payment of the interest due on such interest payment date, then from and including the next preceding semi-annual interest payment date to which interest has been paid or duly made available for payment on the bonds of this series, or if such interest payment date is April 15, 2019, from and including November 13, 2018), in each case to but excluding the next succeeding interest payment date or the date of maturity, as the case may be, at the rate per annum, until the principal hereof is paid or duly made available for payment, specified in the title of this bond, payable on April 15 and October 15 in each year.  The provisions of this bond are continued below and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This bond shall not be valid or become obligatory for any purpose unless and until it shall have been authenticated by the execution by the Trustee or its successor in trust under the Indenture of the certificate hereon.

 

IN WITNESS WHEREOF, Consumers Energy Company has caused this bond to be executed in its name by its Chairman of the Board, its President or one of its Vice Presidents by his or her signature or a facsimile thereof, and its corporate seal or a facsimile thereof to be affixed hereto or imprinted hereon and attested by its Secretary or one of its Assistant Secretaries by his or her signature or a facsimile thereof.

 

	
 
    	
CONSUMERS   ENERGY COMPANY
    
	
 
    	
 
    
	
Dated:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Printed:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    	
 
    
					

 

TRUSTEE’S AUTHENTICATION CERTIFICATE

 

This is one of the bonds, of the series designated therein, described in the within-mentioned Indenture.

 

	
 
    	
THE   BANK OF NEW YORK MELLON, Trustee
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Officer
    

 

9

 

CONSUMERS ENERGY COMPANY

 

FIRST MORTGAGE BOND
 4.35% SERIES DUE 2049

 

The interest payable on any April 15 or October 15 will, subject to certain exceptions provided in the Indenture hereinafter mentioned, be paid to the person in whose name this bond is registered at 5:00 p.m., New York City time, on the record date, which shall be the April 1 or October 1 (whether or not such April 1 or October 1 shall be a legal holiday or a day on which banking institutions in the Borough of Manhattan, The City of New York, are authorized to close) preceding the relevant interest payment date, except that interest payable at the 2049 Stated Maturity shall be paid to the person to whom the principal amount is paid.  The initial interest payment date will be April 15, 2019.  The principal of and the premium, if any, and interest on this bond shall be payable at the office or agency of the Company in the Borough of Manhattan, The City of New York, designated for that purpose, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts.

 

This bond is one of the bonds of a series designated as First Mortgage Bonds, 4.35% Series due 2049 (sometimes herein referred to as the “2049 Bonds” or the “Bonds”) issued under and in accordance with and secured by an indenture dated as of September 1, 1945, given by the Company (or its predecessor, Consumers Power Company, a Maine corporation) to City Bank Farmers Trust Company (The Bank of New York Mellon, successor) (hereinafter sometimes referred to as the “Trustee”), together with indentures supplemental thereto, heretofore or hereafter executed, to which indenture and indentures supplemental thereto (hereinafter referred to collectively as the “Indenture”) reference is hereby made for a description of the property mortgaged and pledged, the nature and extent of the security and the rights, duties and immunities thereunder of the Trustee and the rights of the holders of said bonds and of the Trustee and of the Company in respect of such security, and the limitations on such rights. By the terms of the Indenture, the bonds to be secured thereby are issuable in series which may vary as to date, amount, date of maturity, rate of interest and in other respects as provided in the Indenture.

 

Any or all of the 2049 Bonds may be redeemed by the Company at its option, in whole or in part, at any time and from time to time prior to maturity at a redemption price equal to 100% of the principal amount of such 2049 Bonds being redeemed plus, in the case of any redemption prior to the Par Call Date (as defined below), the Applicable Premium (as defined below), if any, thereon at the time of redemption, together with (at any time) accrued and unpaid interest, if any, thereon to, but not including, the redemption date.  In no event will the redemption price be less than 100% of the principal amount of the 2049 Bonds being redeemed plus accrued and unpaid interest, if any, thereon to, but not including, the redemption date.

 

“Par Call Date” means October 15, 2048.

 

“Applicable Premium” means, with respect to a 2049 Bond (or portion thereof) being redeemed at any time prior to the Par Call Date, the excess of (i) the present value at the redemption date of (A) the principal amount of such 2049 Bond (or portion thereof) being

 

10

 

redeemed as though such 2049 Bond (or portion thereof) matured on the Par Call Date plus (B) all remaining scheduled interest payments on such 2049 Bond (or portion thereof) after such redemption date that would be due if such 2049 Bond matured on the Par Call Date (but, for the avoidance of doubt, excluding any portion of such payments of interest accrued to such redemption date), which present value shall be computed by the Company using a discount rate equal to the Treasury Rate (as defined below) plus 20 basis points, over (ii) the principal amount of such 2049 Bond (or portion thereof) being redeemed at such time.  For purposes of this definition, the present values of interest and principal payments will be determined in accordance with generally accepted principles of financial analysis.

 

“Treasury Rate” means the yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (the “Statistical Release”)) that has become publicly available at least two Business Days prior to the redemption date (or, if such Statistical Release is no longer published, any publicly available source of similar market data) most nearly equal to the then remaining average life to stated maturity of the 2049 Bonds being redeemed (assuming for this purpose that such 2049 Bonds matured on the Par Call Date); provided, however, that if the average life to stated maturity of the 2049 Bonds is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by the Company by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given.

 

If less than all of the 2049 Bonds are to be redeemed and (i) the 2049 Bonds are in global form, the interests in the 2049 Bonds to be redeemed shall be selected for redemption by The Depository Trust Company in accordance with The Depository Trust Company’s standard procedures therefor, or (ii) the 2049 Bonds are in definitive form, the Trustee shall select the 2049 Bonds to be redeemed by lot, on a pro rata basis or by another method the Trustee deems appropriate and fair.  Notice of redemption shall be delivered not less than 10 nor more than 60 days prior to the date fixed for redemption to the holders of the 2049 Bonds to be redeemed (which, as long as the 2049 Bonds are held in the book-entry only system, will be The Depository Trust Company (or its nominee) or a successor depositary (or the successor’s nominee)); provided, however, that the failure to duly deliver such notice, or any defect therein, shall not affect the validity of any proceedings for the redemption of the 2049 Bonds as to which there shall have been no such failure or defect.  On and after the date fixed for redemption (unless the Company shall default in the payment of the 2049 Bonds or portions thereof to be redeemed at the applicable redemption price, together with accrued and unpaid interest, if any, thereon to, but not including, such date), interest on the 2049 Bonds or the portions thereof so called for redemption shall cease to accrue.

 

This bond is not redeemable by the operation of the maintenance and replacement provisions of the Indenture or with the proceeds of released property or in any other manner except as set forth above.

 

In case of certain defaults as specified in the Indenture, the principal of this bond may be declared or may become due and payable on the conditions, at the time, in the manner and with the effect provided in the Indenture.  The holders of certain specified percentages of the

 

11

 

bonds at the time outstanding, including in certain cases specified percentages of bonds of particular series, may in certain cases, to the extent and as provided in the Indenture, waive certain defaults thereunder and the consequences of such defaults.

 

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than seventy-five per centum in principal amount of the bonds (exclusive of bonds disqualified by reason of the Company’s interest therein) at the time outstanding, including, if more than one series of bonds shall be at the time outstanding, not less than sixty per centum in principal amount of each series affected, to effect, by an indenture supplemental to the Indenture, modifications or alterations of the Indenture and of the rights and obligations of the Company and the rights of the holders of the bonds and coupons; provided, however, that no such modification or alteration shall be made without the written approval or consent of the holder hereof which will (a) extend the maturity of this bond or reduce the rate or extend the time of payment of interest hereon or reduce the amount of the principal hereof or reduce any premium payable on the redemption hereof, (b) permit the creation of any lien, not otherwise permitted, prior to or on a parity with the lien of the Indenture, or (c) reduce the aforesaid percentage of the principal amount of bonds the holders of which are required to approve any such supplemental indenture.

 

The Company reserves the right, without any consent, vote or other action by holders of the 2049 Bonds or any other series created after the Sixty-eighth Supplemental Indenture, to amend the Indenture to reduce the percentage of the principal amount of bonds the holders of which are required to approve any supplemental indenture (other than any supplemental indenture which is subject to the proviso contained in the immediately preceding sentence) (a) from not less than seventy-five per centum (including sixty per centum of each series affected) to not less than a majority in principal amount of the bonds at the time outstanding or (b) in case fewer than all series are affected, not less than a majority in principal amount of the bonds of all affected series, voting together.

 

No recourse shall be had for the payment of the principal of or premium, if any, or interest on this bond, or for any claim based hereon, or otherwise in respect hereof or of the Indenture, to or against any incorporator, stockholder, director or officer, past, present or future, as such, of the Company, or of any predecessor or successor company, either directly or through the Company, or such predecessor or successor company, or otherwise, under any constitution or statute or rule of law, or by the enforcement of any assessment or penalty, or otherwise, all such liability of incorporators, stockholders, directors and officers, as such, being waived and released by the holder and owner hereof by the acceptance of this bond and being likewise waived and released by the terms of the Indenture.

 

{END OF FORM OF REGISTERED BOND OF THE 2049 BONDS}

 

 

12

 

AND WHEREAS, all acts and things necessary to make the Bonds, when duly executed by the Company and authenticated by the Trustee or its agent and issued as prescribed in the Indenture, as heretofore supplemented and amended, and this Supplemental Indenture, the valid, binding and legal obligations of the Company, and to constitute the Indenture, as supplemented and amended as aforesaid, as well as by this Supplemental Indenture, a valid, binding and legal instrument for the security thereof, have been done and performed, and the creation, execution and delivery of this Supplemental Indenture and the creation, execution and issuance of bonds subject to the terms hereof and of the Indenture, as so supplemented and amended, have in all respects been duly authorized;

 

NOW, THEREFORE, in consideration of the premises, of the acceptance and purchase by the holders thereof of the bonds issued and to be issued under the Indenture, as supplemented and amended as above set forth, duly paid by the Trustee to the Company, and of other good and valuable considerations, the receipt whereof is hereby acknowledged, and for the purpose of securing the due and punctual payment of the principal of and premium, if any, and interest on all bonds now outstanding under the Indenture and the $300,000,000 principal amount of the 2028 Bonds and the $550,000,000 principal amount of the 2049 Bonds, and all other bonds which shall be issued under the Indenture, as supplemented and amended from time to time, and for the purpose of securing the faithful performance and observance of all covenants and conditions therein, and in any indenture supplemental thereto, set forth, the Company has given, granted, bargained, sold, released, transferred, assigned, hypothecated, pledged, mortgaged, confirmed, set over, warranted, alienated and conveyed and by these presents does give, grant, bargain, sell, release, transfer, assign, hypothecate, pledge, mortgage, confirm, set over, warrant, alienate and convey unto The Bank of New York Mellon, as Trustee, as provided in the Indenture, and its successor or successors in the trust thereby and hereby created and to its or their assigns forever, all the right, title and interest of the Company in and to all the property, described in Section 13 hereof, together (subject to the provisions of Article X of the Indenture) with the tolls, rents, revenues, issues, earnings, income, products and profits thereof, excepting, however, the property, interests and rights specifically excepted from the lien of the Indenture as set forth in the Indenture;

 

TOGETHER WITH all and singular the tenements, hereditaments and appurtenances belonging or in any wise appertaining to the premises, property, franchises and rights, or any thereof, referred to in the foregoing granting clause, with the reversion and reversions, remainder and remainders and (subject to the provisions of Article X of the Indenture) the tolls, rents, revenues, issues, earnings, income, products and profits thereof, and all the estate, right, title and interest and claim whatsoever, at law as well as in equity, which the Company now has or may hereafter acquire in and to the aforesaid premises, property, franchises and rights and every part and parcel thereof;

 

SUBJECT, HOWEVER, with respect to such premises, property, franchises and rights, to excepted encumbrances as said term is defined in Section 1.02 of the Indenture, and subject also to all defects and limitations of title and to all encumbrances existing at the time of acquisition.

 

13

 

TO HAVE AND TO HOLD all said premises, property, franchises and rights hereby conveyed, assigned, pledged or mortgaged, or intended so to be, unto the Trustee, its successor or successors in trust and their assigns forever;

 

BUT IN TRUST, NEVERTHELESS, with power of sale for the equal and proportionate benefit and security of the holders of all bonds now or hereafter authenticated and delivered under and secured by the Indenture and interest coupons appurtenant thereto, pursuant to the provisions of the Indenture and of any supplemental indenture, and for the enforcement of the payment of said bonds and coupons when payable and the performance of and compliance with the covenants and conditions of the Indenture and of any supplemental indenture, without any preference, distinction or priority as to lien or otherwise of any bond or bonds over others by reason of the difference in time of the actual authentication, delivery, issue, sale or negotiation thereof or for any other reason whatsoever, except as otherwise expressly provided in the Indenture; and so that each and every bond now or hereafter authenticated and delivered thereunder shall have the same lien, and so that the principal of and premium, if any, and interest on every such bond shall, subject to the terms thereof, be equally and proportionately secured, as if it had been made, executed, authenticated, delivered, sold and negotiated simultaneously with the execution and delivery thereof;

 

AND IT IS EXPRESSLY DECLARED by the Company that all bonds authenticated and delivered under and secured by the Indenture, as supplemented and amended as above set forth, are to be issued, authenticated and delivered, and all said premises, property, franchises and rights hereby and by the Indenture and indentures supplemental thereto conveyed, assigned, pledged or mortgaged, or intended so to be, are to be dealt with and disposed of under, upon and subject to the terms, conditions, stipulations, covenants, agreements, trusts, uses and purposes expressed in the Indenture, as supplemented and amended as above set forth, and the parties hereto mutually agree as follows:

 

SECTION 1. There is hereby created one series of bonds (the “2028 Bonds”) designated as hereinabove provided, which shall also bear the descriptive title “First Mortgage Bond”, and the form thereof shall be substantially as hereinbefore set forth.  The 2028 Bonds shall be issued in the aggregate principal amount of $300,000,000, shall mature on November 15, 2028 and shall be issued only as registered bonds without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.  The serial numbers of the 2028 Bonds shall be such as may be approved by any officer of the Company, the execution thereof by any such officer either manually or by facsimile signature to be conclusive evidence of such approval.  The 2028 Bonds shall bear interest at the rate per annum, until the principal thereof is paid or duly made available for payment, specified in the title thereto, payable semi-annually in arrears on May 15 and November 15 in each year, commencing May 15, 2019.  Interest on the Bonds will be computed on the basis of a 360-day year consisting of twelve 30-day months.  The principal of and the premium, if any, and the interest on said bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts, at the office or agency of the Company in the City of New York, designated for that purpose.  Additional 2028 Bonds, without limitation as to amount (except as provided in the Indenture), and without the consent of the holders of the then outstanding 2028 Bonds, but with the same terms as such outstanding 2028 Bonds (except the issue price and the issue date and, if applicable, the initial interest accrual date and the initial interest payment date),

 

14

 

may be authenticated and delivered in the manner provided in the Indenture, and any such additional 2028 Bonds would constitute a single series with such outstanding 2028 Bonds.

 

SECTION 2. There is hereby created one series of bonds (the “2049 Bonds”) designated as hereinabove provided, which shall also bear the descriptive title “First Mortgage Bond”, and the form thereof shall be substantially as hereinbefore set forth.  The 2049 Bonds shall be issued in the aggregate principal amount of $550,000,000, shall mature on April 15, 2049 and shall be issued only as registered bonds without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.  The serial numbers of the 2049 Bonds shall be such as may be approved by any officer of the Company, the execution thereof by any such officer either manually or by facsimile signature to be conclusive evidence of such approval.  The 2049 Bonds shall bear interest at the rate per annum, until the principal thereof is paid or duly made available for payment, specified in the title thereto, payable semi-annually in arrears on April 15 and October 15 in each year, commencing April 15, 2019.  Interest on the Bonds will be computed on the basis of a 360-day year consisting of twelve 30-day months.  The principal of and the premium, if any, and the interest on said bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts, at the office or agency of the Company in the City of New York, designated for that purpose.  Additional 2049 Bonds, without limitation as to amount (except as provided in the Indenture), and without the consent of the holders of the then outstanding 2049 Bonds, but with the same terms as such outstanding 2049 Bonds (except the issue price and the issue date and, if applicable, the initial interest accrual date and the initial interest payment date), may be authenticated and delivered in the manner provided in the Indenture, and any such additional 2049 Bonds would constitute a single series with such outstanding 2049 Bonds.

 

SECTION 3.

 

SECTION 3.01.  Forms of Bonds.

 

The 2028 Bonds and the 2049 Bonds shall each be issued initially in the form of one or more permanent global Bonds in definitive, fully registered form without interest coupons with the global securities legend appearing in the form of 2028 Bond and in the form of 2049 Bond hereinbefore set forth endorsed thereon (each, a “Global Bond”), which shall be deposited on behalf of the respective purchasers of each of the Bonds represented thereby with the Trustee, at its corporate trust office, as securities custodian (or with such other securities custodian as the Depository (as defined below) may direct), and registered in the name of the Depository or a nominee of the Depository, duly executed by the Company and authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the Global Bonds may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depository or its nominee as hereinafter provided.  The depository for the Global Bonds shall be The Depository Trust Company, a New York corporation, or its duly appointed successor (the “Depository”).  This Section 3.01 shall apply only to a Global Bond deposited with or on behalf of the Depository.

 

The Company shall execute and the Trustee shall, in the case of each of the 2028 Bonds and the 2049 Bonds in accordance with this Section 3.01, authenticate and deliver initially one or more Global Bonds for the 2028 Bonds and for the 2049 Bonds, each of which (a) shall be

 

15

 

registered in the name of the Depository or the nominee of the Depository and (b) shall be delivered by the Trustee to the Depository or pursuant to the Depository’s instructions or held by the Trustee as securities custodian.

 

Members of, or participants in, the Depository (“Agent Members”) shall have no rights under this Supplemental Indenture with respect to any Global Bond held on their behalf by the Depository or by the Trustee as the securities custodian or under such Global Bond, and the Company, the Trustee and any agent of the Company or the Trustee shall be entitled to treat the Depository as the absolute owner of such Global Bond for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by the Depository or impair, as between the Depository and its Agent Members, the operation of customary practices of such Depository governing the exercise of the rights of a holder of a beneficial interest in any Global Bond.

 

Except as provided in this Section 3.01, Section 3.02 or Section 3.03, owners of beneficial interests in Global Bonds shall not be entitled to receive physical delivery of certificated Bonds.

 

SECTION 3.02.  Transfer and Exchange.

 

(a)           Transfer and Exchange of Global Bonds.

 

(i)                    The transfer and exchange of Global Bonds or beneficial interests therein shall be effected through the Depository, in accordance with this Supplemental Indenture (including applicable restrictions on transfer set forth herein, if any) and the procedures of the Depository therefor.

 

(ii)                   Notwithstanding any other provision of this Supplemental Indenture (other than the provisions set forth in Section 3.03), a Global Bond may not be transferred as a whole or in part except by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository.

 

(b)           Cancellation or Adjustment of Global Bond.  At such time as all beneficial interests in a Global Bond have either been exchanged for certificated Bonds, redeemed, purchased or canceled, such Global Bond shall be canceled by the Trustee.  At any time prior to such cancellation, if any beneficial interest in a Global Bond is exchanged for certificated Bonds, redeemed, purchased or canceled, the principal amount of Bonds represented by such Global Bond shall be reduced and an adjustment shall be made on the books and records of the securities custodian with respect to such Global Bond.

 

16

 

(c)           Obligations with Respect to Transfers and Exchanges of Bonds.

 

(i)                    To permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate certificated Bonds and Global Bonds at the security registrar’s request.

 

(ii)                   No service charge shall be made for registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax, assessments or similar governmental charge payable in connection therewith.

 

(iii)                  Prior to the due presentation for registration of transfer of any Bond, the Company, the Trustee, the paying agent or the security registrar may deem and treat the person in whose name a Bond is registered as the absolute owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and (subject to the record date provisions of the Bonds) interest on such Bond and for all other purposes whatsoever, whether or not such Bond is overdue, and none of the Company, the Trustee, the paying agent or the security registrar shall be affected by notice to the contrary.

 

(iv)                  All Bonds issued upon any transfer or exchange pursuant to the terms of the Indenture shall evidence the same debt and shall be entitled to the same benefits under the Indenture as the Bonds surrendered upon such transfer or exchange.

 

(d)           No Obligation of Trustee.

 

(i)                    The Trustee (whether in its capacity as Trustee or otherwise) shall have no responsibility or obligation to any beneficial owner of a Global Bond, Agent Member or other person with respect to the accuracy of the records of the Depository or its nominee or of any Agent Member, with respect to any ownership interest in the Bonds or with respect to the delivery to any Agent Member, beneficial owner or other person (other than the Depository) of any notice (including any notice of redemption) or the payment of any amount, under or with respect to such Bonds.  All notices and communications to be given to the holders and all payments to be made to holders under the Bonds shall be given or made only to or upon the order of the registered holders (which shall be the Depository or its nominee in the case of a Global Bond).  The rights of beneficial owners in any Global Bond shall be exercised only through the Depository subject to the applicable rules and procedures of the Depository.  The Trustee may rely and shall be fully protected in relying upon information furnished by the Depository with respect to its Agent Members and any beneficial owners.

 

(ii)                   The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Supplemental Indenture or under applicable law with respect to any transfer of any interest in any Bond (including any transfers between or among Agent Members or beneficial owners in any Global Bond) other than to require delivery of such certificates

 

17

 

and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of the Indenture.

 

SECTION 3.03.  Certificated Bonds.

 

(a)           A Global Bond deposited with the Depository or with the Trustee as securities custodian pursuant to Section 3.01 shall be transferred to the beneficial owners thereof in the form of certificated Bonds of the same series in an aggregate principal amount equal to the principal amount of such Global Bond, in exchange for such Global Bond, only if such transfer complies with and is permitted by this Section 3.03 and complies with the conditions set forth in Article II of the Indenture.

 

(b)           Any Global Bond that is transferable to the beneficial owners thereof pursuant to this Section 3.03 shall be surrendered by the Depository to the Trustee at its corporate trust office to be so transferred, in whole or from time to time in part, without charge, and the Trustee shall authenticate and deliver, upon such transfer of each portion of such Global Bond, an equal aggregate principal amount of certificated Bonds of authorized denominations and of the same series.  Any portion of a Global Bond transferred pursuant to this Section 3.03 shall be executed, authenticated and delivered only in denominations of $2,000 principal amount and any integral multiple of $1,000 in excess thereof and registered in such names as the Depository shall direct.

 

(c)           Subject to the provisions of Section 3.03(b), the registered holder of a Global Bond shall be entitled to grant proxies and otherwise authorize any person, including Agent Members and persons that may hold interests through Agent Members, to take any action which such holder is entitled to take under the Indenture or the Bonds.

 

(d)           If the Depository at any time is unwilling or unable to continue as a depository, defaults in the performance of its duties as depository or ceases to be a clearing agency registered under the Securities Exchange Act of 1934 or other applicable statute or regulation, and a successor depository is not appointed by the Company within 90 days, the Company will issue Bonds in definitive form and of the same series in exchange for the global securities relating to the Bonds.  In addition, the Company may at any time and in its sole discretion and subject to the Depository’s procedures determine not to have the Bonds of a series or portions of the Bonds of such series represented by one or more global securities and, in that event, will issue individual Bonds of the same series in exchange for the global security or securities representing such Bonds.  Further, if the Company so specifies with respect to the Bonds of a series, an owner of a beneficial interest in a global security representing the Bonds of such series may, on terms acceptable to the Company and the depositary for the global security, receive individual Bonds of such series in exchange for the beneficial interest.  In any such instance, an owner of a beneficial interest in a global security will be entitled to physical delivery in definitive form of Bonds of such series represented by the global security equal in principal amount to the beneficial interest, and to have the Bonds of such series registered in its name.  Bonds so issued in definitive form will be issued as registered Bonds in denominations of $2,000 and integral multiples of $1,000.

 

18

 

SECTION 4.  Any or all of a series of Bonds may be redeemed by the Company at its option, in whole or in part, at any time and from time to time prior to maturity, at a redemption price equal to 100% of the principal amount of such Bonds being redeemed plus, in the case of any redemption prior to the applicable Par Call Date (as defined below), the Applicable Premium (as defined below), if any, thereon at the time of redemption, together with (at any time) accrued and unpaid interest, if any, thereon to, but not including, the redemption date.  In no event will the redemption price be less than 100% of the principal amount of the Bonds being redeemed plus accrued and unpaid interest, if any, thereon to, but not including, the redemption date.

 

“Par Call Date” means August 15, 2028 with respect to the 2028 Bonds and October 15, 2048 with respect to the 2049 Bonds.

 

“Applicable Premium” means, with respect to a 2028 Bond (or portion thereof) being redeemed at any time prior to the applicable Par Call Date, the excess of (i) the present value at the redemption date of (A) the principal amount of such 2028 Bond (or portion thereof) being redeemed as though such 2028 Bond (or portion thereof) matured on the applicable Par Call Date plus (B) all remaining scheduled interest payments on such 2028 Bond (or portion thereof) after such redemption date that would be due if such 2028 Bond matured on the applicable Par Call Date (but, for the avoidance of doubt, excluding any portion of such payments of interest accrued to such redemption date), which present value shall be computed by the Company using a discount rate equal to the Treasury Rate (as defined below) plus 15 basis points, over (ii) the principal amount of such 2028 Bond (or portion thereof) being redeemed at such time.  For purposes of this definition, the present values of interest and principal payments will be determined in accordance with generally accepted principles of financial analysis.

 

“Applicable Premium” means, with respect to a 2049 Bond (or portion thereof) being redeemed at any time prior to the applicable Par Call Date, the excess of (i) the present value at the redemption date of (A) the principal amount of such 2049 Bond (or portion thereof) being redeemed as though such 2049 Bond (or portion thereof) matured on the applicable Par Call Date plus (B) all remaining scheduled interest payments on such 2049 Bond (or portion thereof) after such redemption date that would be due if such 2049 Bond matured on the applicable Par Call Date (but, for the avoidance of doubt, excluding any portion of such payments of interest accrued to such redemption date), which present value shall be computed by the Company using a discount rate equal to the Treasury Rate (as defined below) plus 20 basis points, over (ii) the principal amount of such 2049 Bond (or portion thereof) being redeemed at such time.  For purposes of this definition, the present values of interest and principal payments will be determined in accordance with generally accepted principles of financial analysis.

 

“Treasury Rate” means the yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (the “Statistical Release”)) that has become publicly available at least two Business Days prior to the redemption date (or, if such Statistical Release is no longer published, any publicly available source of similar market data) most nearly equal to the then remaining average life to stated maturity of the Bonds of the relevant series being redeemed (assuming for this purpose that such Bonds of such series matured on the applicable Par Call Date); provided, however, that if the average life to stated maturity of the Bonds of such

 

19

 

series being redeemed is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by the Company by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given.

 

In connection with any redemption of either series of the Bonds prior to the applicable Par Call Date, the Company shall give the Trustee notice of the redemption price promptly after the calculation thereof and the Trustee shall not be responsible for such calculation.

 

If less than all of the Bonds of a series are to be redeemed and (i) the Bonds of such series are in global form, the interests in the Bonds of such series to be redeemed shall be selected for redemption by The Depository Trust Company in accordance with The Depository Trust Company’s standard procedures therefor, or (ii) the Bonds of such series are in definitive form, the Trustee shall select the Bonds of such series to be redeemed by lot, on a pro rata basis or by another method the Trustee deems appropriate and fair.  Notice of redemption shall be delivered not less than 10 nor more than 60 days prior to the date fixed for redemption to the holders of the Bonds of such series to be redeemed (which, as long as such series of Bonds are held in the book-entry only system, will be The Depository Trust Company (or its nominee) or a successor depositary (or the successor’s nominee)); provided, however, that the failure to duly deliver such notice, or any defect therein, shall not affect the validity of any proceedings for the redemption of the Bonds of such series as to which there shall have been no such failure or defect.  On and after the date fixed for redemption (unless the Company shall default in the payment of the Bonds of such series or portions thereof to be redeemed at the applicable redemption price, together with accrued and unpaid interest, if any, thereon to, but not including, such date), interest on the Bonds or the portions thereof of such series so called for redemption shall cease to accrue.

 

SECTION 5.  The Bonds are not redeemable by the operation of the maintenance and replacement provisions of the Indenture or with the proceeds of released property or in any other manner except as set forth in Section 4 hereof.

 

SECTION 6.  The Company reserves the right, without any consent, vote or other action by the holders of the Bonds or of any subsequent series of bonds issued under the Indenture, to make such amendments to the Indenture, as supplemented, as shall be necessary in order to amend Section 17.02 to read as follows:

 

SECTION 17.02.  With the consent of the holders of not less than a majority in principal amount of the bonds at the time outstanding or their attorneys-in-fact duly authorized, or, if fewer than all series are affected, not less than a majority in principal amount of the bonds at the time outstanding of each series the rights of the holders of which are affected, voting together, the Company, when authorized by a resolution, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or modifying the rights and

 

20

 

obligations of the Company and the rights of the holders of any of the bonds and coupons; provided, however, that no such supplemental indenture shall (1) extend the maturity of any of the bonds or reduce the rate or extend the time of payment of interest thereon, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the holder of each bond so affected, or (2) permit the creation of any lien, not otherwise permitted, prior to or on a parity with the lien of this Indenture, without the consent of the holders of all the bonds then outstanding, or (3) reduce the aforesaid percentage of the principal amount of bonds the holders of which are required to approve any such supplemental indenture, without the consent of the holders of all the bonds then outstanding. For the purposes of this Section, bonds shall be deemed to be affected by a supplemental indenture if such supplemental indenture adversely affects or diminishes the rights of holders thereof against the Company or against its property. The Trustee may in its discretion determine whether or not, in accordance with the foregoing, bonds of any particular series would be affected by any supplemental indenture and any such determination shall be conclusive upon the holders of bonds of such series and all other series. Subject to the provisions of Sections 16.02 and 16.03 hereof, the Trustee shall not be liable for any determination made in good faith in connection herewith.

 

Upon the written request of the Company, accompanied by a resolution authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of bondholders as aforesaid (the instrument or instruments evidencing such consent to be dated within one year of such request), the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental indenture.

 

It shall not be necessary for the consent of the bondholders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.

 

The Company and the Trustee, if they so elect, and either before or after such consent has been obtained, may require the holder of any bond consenting to the execution of any such supplemental indenture to submit his bond to the Trustee or to ask such bank, banker or trust company as may be designated by the Trustee for the purpose, for the notation thereon of the fact that the holder of such bond has consented to the execution of such supplemental indenture, and in such case such notation, in form satisfactory to the Trustee, shall be made upon all bonds so submitted, and

 

21

 

such bonds bearing such notation shall forthwith be returned to the persons entitled thereto.

 

Prior to the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Company shall publish a notice, setting forth in general terms the substance of such supplemental indenture, at least once in one daily newspaper of general circulation in each city in which the principal of any of the bonds shall be payable, or, if all bonds outstanding shall be registered bonds without coupons or coupon bonds registered as to principal, such notice shall be sufficiently given if mailed, first class, postage prepaid, and registered if the Company so elects, to each registered holder of bonds at the last address of such holder appearing on the registry books, such publication or mailing, as the case may be, to be made not less than thirty days prior to such execution. Any failure of the Company to give such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

 

SECTION 7.  The Company hereby appoints the Trustee as paying agent, registrar and transfer agent for the Bonds.

 

SECTION 8.  As supplemented and amended as above set forth, the Indenture is in all respects ratified and confirmed, and the Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.

 

SECTION 9.  The Trustee assumes no responsibility for or in respect of the validity or sufficiency of this Supplemental Indenture or of the Indenture as hereby supplemented or the due execution hereof by the Company or for or in respect of the recitals and statements contained herein (other than those contained in the tenth and eleventh recitals hereof), all of which recitals and statements are made solely by the Company.

 

SECTION 10.  This Supplemental Indenture may be simultaneously executed in several counterparts and all such counterparts executed and delivered, each as an original, shall constitute but one and the same instrument.

 

SECTION 11.  If any interest payment date or redemption date for the Bonds or the 2028 Stated Maturity or the 2049 Stated Maturity falls on a day that is not a Business Day, the interest or principal payment will be made on the next succeeding Business Day (and without any interest or other payment in respect of any such delay).  In the event the date of any notice required or permitted hereunder shall not be a Business Day, then (notwithstanding any other provision of the Indenture or of any supplemental indenture thereto) such notice need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date fixed for such notice.  “Business Day” means, with respect to Section 4 and this Section 11, any day, other than a Saturday or Sunday, on which banks generally are open in New York, New York for the conduct of substantially all of their commercial lending activities and on which interbank wire transfers can be made on the Fedwire system.

 

22

 

SECTION 12.  This Supplemental Indenture and the Bonds shall be governed by and deemed to be a contract under, and construed in accordance with, the laws of the State of Michigan, and for all purposes shall be construed in accordance with the laws of such state, except as may otherwise be required by mandatory provisions of law.

 

SECTION 13.  Detailed Description of Property Mortgaged:

 

I.

 

ELECTRIC GENERATING PLANTS AND DAMS

 

All the electric generating plants and stations of the Company, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, including all powerhouses, buildings, reservoirs, dams, pipelines, flumes, structures and works and the land on which the same are situated and all water rights and all other lands and easements, rights of way, permits, privileges, towers, poles, wires, machinery, equipment, appliances, appurtenances and supplies and all other property, real or personal, forming a part of or appertaining to or used, occupied or enjoyed in connection with such plants and stations or any of them, or adjacent thereto.

 

II.

 

ELECTRIC TRANSMISSION LINES

 

All the electric transmission lines of the Company, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, including towers, poles, pole lines, wires, switches, switch racks, switchboards, insulators and other appliances and equipment, and all other property, real or personal, forming a part of or appertaining to or used, occupied or enjoyed in connection with such transmission lines or any of them or adjacent thereto; together with all real property, rights of way, easements, permits, privileges, franchises and rights for or relating to the construction, maintenance or operation thereof, through, over, under or upon any private property or any public streets or highways, within as well as without the corporate limits of any municipal corporation. Also all the real property, rights of way, easements, permits, privileges and rights for or relating to the construction, maintenance or operation of certain transmission lines, the land and rights for which are owned by the Company, which are either not built or now being constructed.

 

III.

 

ELECTRIC DISTRIBUTION SYSTEMS

 

All the electric distribution systems of the Company, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, including substations, transformers, switchboards, towers, poles, wires, insulators, subways, trenches, conduits, manholes, cables, meters and other appliances and equipment, and all other property, real or personal, forming a

 

23

 

part of or appertaining to or used, occupied or enjoyed in connection with such distribution systems or any of them or adjacent thereto; together with all real property, rights of way, easements, permits, privileges, franchises, grants and rights, for or relating to the construction, maintenance or operation thereof, through, over, under or upon any private property or any public streets or highways within as well as without the corporate limits of any municipal corporation.

 

IV.

 

ELECTRIC SUBSTATIONS, SWITCHING STATIONS AND SITES

 

All the substations, switching stations and sites of the Company, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, for transforming, regulating, converting or distributing or otherwise controlling electric current at any of its plants and elsewhere, together with all buildings, transformers, wires, insulators and other appliances and equipment, and all other property, real or personal, forming a part of or appertaining to or used, occupied or enjoyed in connection with any of such substations and switching stations, or adjacent thereto, with sites to be used for such purposes.

 

V.

 

GAS COMPRESSOR STATIONS, GAS PROCESSING PLANTS, 
 DESULPHURIZATION STATIONS, METERING STATIONS, ODORIZING STATIONS,
 REGULATORS AND SITES

 

All the compressor stations, processing plants, desulphurization stations, metering stations, odorizing stations, regulators and sites of the Company, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, for compressing, processing, desulphurizing, metering, odorizing and regulating manufactured or natural gas at any of its plants and elsewhere, together with all buildings, meters and other appliances and equipment, and all other property, real or personal, forming a part of or appertaining to or used, occupied or enjoyed in connection with any of such purposes, with sites to be used for such purposes.

 

VI.

 

GAS STORAGE FIELDS

 

The natural gas rights and interests of the Company, including wells and well lines (but not including natural gas, oil and minerals), the gas gathering system, the underground gas storage rights, the underground gas storage wells and injection and withdrawal system used in connection therewith, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture: In the Overisel Gas Storage Field, located in the Township of Overisel, Allegan County, and in the Township of Zeeland, Ottawa County, Michigan; in the Northville Gas Storage Field located in the Township of Salem, Washtenaw County, Township of Lyon,

 

24

 

Oakland County, and the Townships of Northville and Plymouth and City of Plymouth, Wayne County, Michigan; in the Salem Gas Storage Field, located in the Township of Salem, Allegan County, and in the Township of Jamestown, Ottawa County, Michigan; in the Ray Gas Storage Field, located in the Townships of Ray and Armada, Macomb County, Michigan; in the Lenox Gas Storage Field, located in the Townships of Lenox and Chesterfield, Macomb County, Michigan; in the Ira Gas Storage Field, located in the Township of Ira, St. Clair County, Michigan; in the Puttygut Gas Storage Field, located in the Township of Casco, St. Clair County, Michigan; in the Four Corners Gas Storage Field, located in the Townships of Casco, China, Cottrellville and Ira, St. Clair County, Michigan; in the Swan Creek Gas Storage Field, located in the Townships of Casco and Ira, St. Clair County, Michigan; and in the Hessen Gas Storage Field, located in the Townships of Casco and Columbus, St. Clair County, Michigan.

 

VII.

 

GAS TRANSMISSION LINES

 

All the gas transmission lines of the Company, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, including gas mains, pipes, pipelines, gates, valves, meters and other appliances and equipment, and all other property, real or personal, forming a part of or appertaining to or used, occupied or enjoyed in connection with such transmission lines or any of them or adjacent thereto; together with all real property, right of way, easements, permits, privileges, franchises and rights for or relating to the construction, maintenance or operation thereof, through, over, under or upon any private property or any public streets or highways, within as well as without the corporate limits of any municipal corporation.

 

VIII.

 

GAS DISTRIBUTION SYSTEMS

 

All the gas distribution systems of the Company, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, including tunnels, conduits, gas mains and pipes, service pipes, fittings, gates, valves, connections, meters and other appliances and equipment, and all other property, real or personal, forming a part of or appertaining to or used, occupied or enjoyed in connection with such distribution systems or any of them or adjacent thereto; together with all real property, rights of way, easements, permits, privileges, franchises, grants and rights, for or relating to the construction, maintenance or operation thereof, through, over, under or upon any private property or any public streets or highways within as well as without the corporate limits of any municipal corporation.

 

IX.

 

OFFICE BUILDINGS, SERVICE BUILDINGS, GARAGES, ETC.

 

All office, garage, service and other buildings of the Company, wherever located, in the State of Michigan, constructed or otherwise acquired by it and not heretofore described in

 

25

 

the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, together with the land on which the same are situated and all easements, rights of way and appurtenances to said lands, together with all furniture and fixtures located in said buildings.

 

X.

 

TELEPHONE PROPERTIES AND 
 RADIO COMMUNICATION EQUIPMENT

 

All telephone lines, switchboards, systems and equipment of the Company, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, used or available for use in the operation of its properties, and all other property, real or personal, forming a part of or appertaining to or used, occupied or enjoyed in connection with such telephone properties or any of them or adjacent thereto; together with all real estate, rights of way, easements, permits, privileges, franchises, property, devices or rights related to the dispatch, transmission, reception or reproduction of messages, communications, intelligence, signals, light, vision or sound by electricity, wire or otherwise, including all telephone equipment installed in buildings used as general and regional offices, substations and generating stations and all telephone lines erected on towers and poles; and all radio communication equipment of the Company, together with all property, real or personal (except any in the Indenture expressly excepted), fixed stations, towers, auxiliary radio buildings and equipment, and all appurtenances used in connection therewith, wherever located, in the State of Michigan.

 

XI.

 

OTHER REAL PROPERTY

 

All other real property of the Company and all interests therein, of every nature and description (except any in the Indenture expressly excepted) wherever located, in the State of Michigan, acquired by it and not heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture.  Such real property includes but is not limited to the following described property, such property is subject to any interests that were excepted or reserved in the conveyance to the Company:

 

ALCONA COUNTY

 

Certain land in Caledonia Township, Alcona County, Michigan described as:

 

The East 330 feet of the South 660 feet of the SW 1/4 of the SW 1/4 of Section 8, T28N, R8E, except the West 264 feet of the South 330 feet thereof; said land being more particularly described as follows: To find the place of beginning of this description, commence at the Southwest corner of said section, run thence East along the South line of said section 1243 feet to the place of beginning of this description, thence continuing East along said South line of said section 66 feet to the West 1/8 line of said section, thence N 02 degrees 09’ 30” E along the said West 1/8 line of said section 660 feet, thence West 330 feet, thence

 

26

 

S 02 degrees 09’ 30” W, 330 feet, thence East 264 feet, thence S 02 degrees 09’ 30” W, 330 feet to the place of beginning.

 

ALLEGAN COUNTY

 

Certain land in Lee Township, Allegan County, Michigan described as:

 

The NE 1/4 of the NW 1/4 of Section 16, T1N, R15W.

 

ALPENA COUNTY

 

Certain land in Wilson and Green Townships, Alpena County, Michigan described as:

 

All that part of the S’ly 1/2 of the former Boyne City-Gaylord and Alpena Railroad right of way, being the Southerly 50 feet of a 100 foot strip of land formerly occupied by said Railroad, running from the East line of Section 31, T31N, R7E, Southwesterly across said Section 31 and Sections 5 and 6 of T30N, R7E and Sections 10, 11 and the E 1/2 of Section 9, except the West 1646 feet thereof, all in T30N, R6E.

 

ANTRIM COUNTY

 

Certain land in Mancelona Township, Antrim County, Michigan described as:

 

The S 1/2 of the NE 1/4 of Section 33, T29N, R6W, excepting therefrom all mineral, coal, oil and gas and such other rights as were reserved unto the State of Michigan in that certain deed running from the State of Michigan to August W. Schack and Emma H. Schack, his wife, dated April 15, 1946 and recorded May 20, 1946 in Liber 97 of Deeds on page 682 of Antrim County Records.

 

ARENAC COUNTY

 

Certain land in Standish Township, Arenac County, Michigan described as:

 

A parcel of land in the SW 1/4 of the NW 1/4 of Section 12, T18N, R4E, described as follows: To find the place of beginning of said parcel of land, commence at the Northwest corner of Section 12, T18N, R4E; run thence South along the West line of said section, said West line of said section being also the center line of East City Limits Road 2642.15 feet to the W 1/4 post of said section and the place of beginning of said parcel of land; running thence N 88 degrees 26’ 00” E along the East and West 1/4 line of said section, 660.0 feet; thence North parallel with the West line of said section, 310.0 feet; thence S 88 degrees 26’ 00” W, 330.0 feet; thence South parallel with the West line of said section, 260.0 feet; thence S 88 degrees 26’ 00” W, 330.0 feet to the West line of said section and the center line of East City Limits Road; thence South along the said West line of said section, 50.0 feet to the place of beginning.

 

27

 

BARRY COUNTY

 

Certain land in Johnstown Township, Barry County, Michigan described as:

 

A strip of land 311 feet in width across the SW 1/4 of the NE 1/4 of Section 31, T1N, R8W, described as follows: To find the place of beginning of this description, commence at the E 1⁄4 post of said section; run thence N 00 degrees 55’ 00” E along the East line of said section, 555.84 feet; thence N 59 degrees 36’ 20” W, 1375.64 feet; thence N 88 degrees 30’ 00” W, 130 feet to a point on the East 1/8 line of said section and the place of beginning of this description; thence continuing N 88 degrees 30’ 00” W, 1327.46 feet to the North and South 1/4 line of said section; thence S 00 degrees 39’35” W along said North and South 1/4 line of said section, 311.03 feet to a point, which said point is 952.72 feet distant N’ly from the East and West 1/4 line of said section as measured along said North and South 1/4 line of said section; thence S 88 degrees 30’ 00” E, 1326.76 feet to the East 1/8 line of said section; thence N 00 degrees 47’ 20” E along said East 1/8 line of said section, 311.02 feet to the place of beginning.

 

BAY COUNTY

 

Certain land in Frankenlust Township, Bay County, Michigan described as:

 

The South 250 feet of the N 1/2 of the W 1/2 of the W 1/2 of the SE 1/4 of Section 9, T13N, R4E.

 

BENZIE COUNTY

 

Certain land in Benzonia Township, Benzie County, Michigan described as:

 

A parcel of land in the Northeast 1/4 of Section 7, Township 26 North, Range 14 West, described as beginning at a point on the East line of said Section 7, said point being 320 feet North measured along the East line of said section from the East 1/4 post; running thence West 165 feet; thence North parallel with the East line of said section 165 feet; thence East 165 feet to the East line of said section; thence South 165 feet to the place of beginning.

 

BRANCH COUNTY

 

Certain land in Girard Township, Branch County, Michigan described as:

 

A parcel of land in the NE 1/4 of Section 23 T5S, R6W, described as beginning at a point on the North and South quarter line of said section at a point 1278.27 feet distant South of the North quarter post of said section, said distance being measured along the North and South quarter line of said section, running thence S89 degrees21’E 250 feet, thence North along a line parallel with the said North and South quarter line of said section 200 feet, thence N89 degrees 21’W 250 feet to the North and South quarter line of said section, thence South along said North and South quarter line of said section 200 feet to the place of beginning.

 

28

 

CALHOUN COUNTY

 

Certain land in Convis Township, Calhoun County, Michigan described as:

 

A parcel of land in the SE 1/4 of the SE 1/4 of Section 32, T1S, R6W, described as follows: To find the place of beginning of this description, commence at the Southeast corner of said section; run thence North along the East line of said section 1034.32 feet to the place of beginning of this description; running thence N 89 degrees 39’ 52” W, 333.0 feet; thence North 290.0 feet to the South 1/8 line of said section; thence S 89 degrees 39’ 52” E along said South 1/8 line of said section 333.0 feet to the East line of said section; thence South along said East line of said section 290.0 feet to the place of beginning. (Bearings are based on the East line of Section 32, T1S, R6W, from the Southeast corner of said section to the Northeast corner of said section assumed as North.)

 

CASS COUNTY

 

Certain easement rights located across land in Marcellus Township, Cass County, Michigan described as:

 

The East 6 rods of the SW 1/4 of the SE 1/4 of Section 4, T5S, R13W.

 

CHARLEVOIX COUNTY

 

Certain land in South Arm Township, Charlevoix County, Michigan described as:

 

A parcel of land in the SW 1/4 of Section 29, T32N, R7W, described as follows: Beginning at the Southwest corner of said section and running thence North along the West line of said section 788.25 feet to a point which is 528 feet distant South of the South 1/8 line of said section as measured along the said West line of said section; thence N 89 degrees 30’ 19” E, parallel with said South 1/8 line of said section 442.1 feet; thence South 788.15 feet to the South line of said section; thence S 89 degrees 29’ 30” W, along said South line of said section 442.1 feet to the place of beginning.

 

CHEBOYGAN COUNTY

 

Certain land in Inverness Township, Cheboygan County, Michigan described as:

 

A parcel of land in the SW frl 1/4 of Section 31, T37N, R2W, described as beginning at the Northwest corner of the SW frl 1/4, running thence East on the East and West quarter line of said Section, 40 rods, thence South parallel to the West line of said Section 40 rods, thence West 40 rods to the West line of said Section, thence North 40 rods to the place of beginning.

 

29

 

CLARE COUNTY

 

Certain land in Frost Township, Clare County, Michigan described as:

 

The East 150 feet of the North 225 feet of the NW 1/4 of the NW 1/4 of Section 15, T20N, R4W.

 

CLINTON COUNTY

 

Certain land in Watertown Township, Clinton County, Michigan described as:

 

The NE 1/4 of the NE 1/4 of the SE 1/4 of Section 22, and the North 165 feet of the NW 1/4 of the NE 1/4 of the SE 1/4 of Section 22, T5N, R3W.

 

CRAWFORD COUNTY

 

Certain land in Lovells Township, Crawford County, Michigan described as:

 

A parcel of land in Section 1, T28N, R1W, described as: Commencing at NW corner said section; thence South 89 degrees53’30” East along North section line 105.78 feet to point of beginning; thence South 89 degrees53’30” East along North section line 649.64 feet; thence South 55 degrees 42’30” East 340.24 feet; thence South 55 degrees 44’ 37”“ East 5,061.81 feet to the East section line; thence South 00 degrees 00’ 08”“ West along East section line 441.59 feet; thence North 55 degrees 44’ 37” West 5,310.48 feet; thence North 55 degrees 42’30” West 877.76 feet to point of beginning.

 

EATON COUNTY

 

Certain land in Eaton Township, Eaton County, Michigan described as:

 

A parcel of land in the SW 1/4 of Section 6, T2N, R4W, described as follows: To find the place of beginning of this description commence at the Southwest corner of said section; run thence N 89 degrees 51’ 30” E along the South line of said section 400 feet to the place of beginning of this description; thence continuing N 89 degrees 51’ 30” E, 500 feet; thence N 00 degrees 50’ 00” W, 600 feet; thence S 89 degrees 51’ 30” W parallel with the South line of said section 500 feet; thence S 00 degrees 50’ 00” E, 600 feet to the place of beginning.

 

EMMET COUNTY

 

Certain land in Wawatam Township, Emmet County, Michigan described as:

 

The West 1/2 of the Northeast 1/4 of the Northeast 1/4 of Section 23, T39N, R4W.

 

30

 

GENESEE COUNTY

 

Certain land in Argentine Township, Genesee County, Michigan described as:

 

A parcel of land of part of the SW 1/4 of Section 8, T5N, R5E, being more particularly described as follows:

 

Beginning at a point of the West line of Duffield Road, 100 feet wide, (as now established) distant 829.46 feet measured N01 degrees 42’56”W and 50 feet measured S88 degrees 14’04”W from the South quarter corner, Section 8, T5N, R5E; thence S88 degrees 14’04”W a distance of 550 feet; thence N01 degrees 42’56”W a distance of 500 feet to a point on the North line of the South half of the Southwest quarter of said Section 8; thence N88 degrees 14’04”E along the North line of South half of the Southwest quarter of said Section 8 a distance 550 feet to a point on the West line of Duffield Road, 100 feet wide (as now established); thence S01 degrees 42’56”E along the West line of said Duffield Road a distance of 500 feet to the point of beginning.

 

GLADWIN COUNTY

 

Certain land in Secord Township, Gladwin County, Michigan described as:

 

The East 400 feet of the South 450 feet of Section 2, T19N, R1E.

 

GRAND TRAVERSE COUNTY

 

Certain land in Mayfield Township, Grand Traverse County, Michigan described as:

 

A parcel of land in the Northwest 1/4 of Section 3, T25N, R11W, described as follows: Commencing at the Northwest corner of said section, running thence S 89 degrees19’15” E along the North line of said section and the center line of Clouss Road 225 feet, thence South 400 feet, thence N 89 degrees19’15” W 225 feet to the West line of said section and the center line of Hannah Road, thence North along the West line of said section and the center line of Hannah Road 400 feet to the place of beginning for this description.

 

GRATIOT COUNTY

 

Certain land in Fulton Township, Gratiot County, Michigan described as:

 

A parcel of land in the NE 1/4 of Section 7, Township 9 North, Range 3 West, described as beginning at a point on the North line of George Street in the Village of Middleton, which is 542 feet East of the North and South one-quarter (1/4) line of said Section 7; thence North 100 feet; thence East 100 feet; thence South 100 feet to the North line of George Street; thence West along the North line of George Street 100 feet to place of beginning.

 

31

 

HILLSDALE COUNTY

 

Certain land in Litchfield Village, Hillsdale County, Michigan described as:

 

Lot 238 of Assessors Plat of the Village of Litchfield.

 

HURON COUNTY

 

Certain easement rights located across land in Sebewaing Township, Huron County, Michigan described as:

 

The North 1/2 of the Northwest 1/4 of Section 15, T15N, R9E.

 

INGHAM COUNTY

 

Certain land in Vevay Township, Ingham County, Michigan described as:

 

A parcel of land 660 feet wide in the Southwest 1/4 of Section 7 lying South of the centerline of Sitts Road as extended to the North-South 1/4 line of said Section 7, T2N, R1W, more particularly described as follows: Commence at the Southwest corner of said Section 7, thence North along the West line of said Section 2502.71 feet to the centerline of Sitts Road; thence South 89 degrees54’45” East along said centerline 2282.38 feet to the place of beginning of this description; thence continuing South 89 degrees54’45” East along said centerline and said centerline extended 660.00 feet to the North-South 1/4 line of said section; thence South 00 degrees07’20” West 1461.71 feet; thence North 89 degrees34’58” West 660.00 feet; thence North 00 degrees07’20” East 1457.91 feet to the centerline of Sitts Road and the place of beginning.

 

IONIA COUNTY

 

Certain land in Sebewa Township, Ionia County, Michigan described as:

 

A strip of land 280 feet wide across that part of the SW 1/4 of the NE 1/4 of Section 15, T5N, R6W, described as follows:

 

To find the place of beginning of this description commence at the E 1/4 corner of said section; run thence N 00 degrees 05’ 38” W along the East line of said section, 1218.43 feet; thence S 67 degrees 18’ 24” W, 1424.45 feet to the East 1/8 line of said section and the place of beginning of this description; thence continuing S 67 degrees 18’ 24” W, 1426.28 feet to the North and South 1/4 line of said section at a point which said point is 105.82 feet distant N’ly of the center of said section as measured along said North and South 1/4 line of said section; thence N 00 degrees 04’ 47” E along said North and South 1/4 line of said section, 303.67 feet; thence N 67 degrees 18’ 24” E, 1425.78 feet to the East 1/8 line of said section; thence S 00 degrees 00’ 26” E along said East 1/8 line of said section, 303.48 feet to the place of beginning. (Bearings are based on the East line

 

32

 

of Section 15, T5N, R6W, from the E 1/4 corner of said section to the Northeast corner of said section assumed as N 00 degrees 05’ 38” W.)

 

IOSCO COUNTY

 

Certain land in Alabaster Township, Iosco County, Michigan described as:

 

A parcel of land in the NW 1/4 of Section 34, T21N, R7E, described as follows: To find the place of beginning of this description commence at the N 1/4 post of said section; run thence South along the North and South 1/4 line of said section, 1354.40 feet to the place of beginning of this description; thence continuing South along the said North and South 1/4 line of said section, 165.00 feet to a point on the said North and South 1/4 line of said section which said point is 1089.00 feet distant North of the center of said section; thence West 440.00 feet; thence North 165.00 feet; thence East 440.00 feet to the said North and South 1/4 line of said section and the place of beginning.

 

ISABELLA COUNTY

 

Certain land in Chippewa Township, Isabella County, Michigan described as:

 

The North 8 rods of the NE 1/4 of the SE 1/4 of Section 29, T14N, R3W.

 

JACKSON COUNTY

 

Certain land in Waterloo Township, Jackson County, Michigan described as:

 

A parcel of land in the North fractional part of the N fractional 1/2 of Section 2, T1S, R2E, described as follows: To find the place of beginning of this description commence at the E 1/4 post of said section; run thence N 01 degrees 03’ 40” E along the East line of said section 1335.45 feet to the North 1/8 line of said section and the place of beginning of this description; thence N 89 degrees 32’ 00” W, 2677.7 feet to the North and South 1/4 line of said section; thence S 00 degrees 59’ 25” W along the North and South 1/4 line of said section 22.38 feet to the North 1/8 line of said section; thence S 89 degrees 59’ 10” W along the North 1/8 line of said section 2339.4 feet to the center line of State Trunkline Highway M-52; thence N 53 degrees 46’ 00” W along the center line of said State Trunkline Highway 414.22 feet to the West line of said section; thence N 00 degrees 55’ 10” E along the West line of said section 74.35 feet; thence S 89 degrees 32’ 00” E, 5356.02 feet to the East line of said section; thence S 01 degrees 03’ 40” W along the East line of said section 250 feet to the place of beginning.

 

33

 

KALAMAZOO COUNTY

 

Certain land in Alamo Township, Kalamazoo County, Michigan described as:

 

The South 350 feet of the NW 1/4 of the NW 1/4 of Section 16, T1S, R12W, being more particularly described as follows: To find the place of beginning of this description, commence at the Northwest corner of said section; run thence S 00 degrees 36’ 55” W along the West line of said section 971.02 feet to the place of beginning of this description; thence continuing S 00 degrees 36’ 55” W along said West line of said section 350.18 feet to the North 1/8 line of said section; thence S 87 degrees 33’ 40” E along the said North 1/8 line of said section 1325.1 feet to the West 1/8 line of said section; thence N 00 degrees 38’ 25” E along the said West 1/8 line of said section 350.17 feet; thence N 87 degrees 33’ 40” W, 1325.25 feet to the place of beginning.

 

KALKASKA COUNTY

 

Certain land in Kalkaska Township, Kalkaska County, Michigan described as:

 

The NW 1/4 of the SW 1/4 of Section 4, T27N, R7W, excepting therefrom all mineral, coal, oil and gas and such other rights as were reserved unto the State of Michigan in that certain deed running from the Department of Conservation for the State of Michigan to George Welker and Mary Welker, his wife, dated October 9, 1934 and recorded December 28, 1934 in Liber 39 on page 291 of Kalkaska County Records, and subject to easement for pipeline purposes as granted to Michigan Consolidated Gas Company by first party herein on April 4, 1963 and recorded June 21, 1963 in Liber 91 on page 631 of Kalkaska County Records.

 

KENT COUNTY

 

Certain land in Caledonia Township, Kent County, Michigan described as:

 

A parcel of land in the Northwest fractional 1/4 of Section 15, T5N, R10W, described as follows: To find the place of beginning of this description commence at the North 1/4 corner of said section, run thence S 0 degrees 59’ 26” E along the North and South 1/4 line of said section 2046.25 feet to the place of beginning of this description, thence continuing S 0 degrees 59’ 26” E along said North and South 1/4 line of said section 332.88 feet, thence S 88 degrees 58’ 30” W 2510.90 feet to a point herein designated “Point A” on the East bank of the Thornapple River, thence continuing S 88 degrees 53’ 30” W to the center thread of the Thornapple River, thence NW’ly along the center thread of said Thornapple River to a point which said point is S 88 degrees 58’ 30” W of a point on the East bank of the Thornapple River herein designated “Point B”, said “Point B” being N 23 degrees 41’ 35” W 360.75 feet from said above-described “Point A”, thence N 88 degrees 58’ 30” E to said “Point B”, thence continuing N 88 degrees 58’ 30” E 2650.13 feet to the place of beginning. (Bearings are based on the East line of

 

34

 

Section 15, T5N, R10W between the East 1/4 corner of said section and the Northeast corner of said section assumed as N 0 degrees 59’ 55” W.)

 

LAKE COUNTY

 

Certain land in Pinora and Cherry Valley Townships, Lake County, Michigan described as:

 

A strip of land 50 feet wide East and West along and adjoining the West line of highway on the East side of the North 1/2 of Section 13 T18N, R12W.  Also a strip of land 100 feet wide East and West along and adjoining the East line of the highway on the West side of following described land: The South 1/2 of NW 1/4, and the South 1/2 of the NW 1/4 of the SW 1/4, all in Section 6, T18N, R11W.

 

LAPEER COUNTY

 

Certain land in Hadley Township, Lapeer County, Michigan described as:

 

The South 825 feet of the W 1/2 of the SW 1/4 of Section 24, T6N, R9E, except the West 1064 feet thereof.

 

LEELANAU COUNTY

 

Certain land in Cleveland Township, Leelanau County, Michigan described as:

 

The North 200 feet of the West 180 feet of the SW 1/4 of the SE 1/4 of Section 35, T29N, R13W.

 

LENAWEE COUNTY

 

Certain land in Madison Township, Lenawee County, Michigan described as:

 

A strip of land 165 feet wide off the West side of the following described premises: The E 1/2 of the SE 1/4 of Section 12.  The E 1/2 of the NE 1/4 and the NE 1/4 of the SE 1/4 of Section 13, being all in T7S, R3E, excepting therefrom a parcel of land in the E 1/2 of the SE 1/4 of Section 12, T7S, R3E, beginning at the Northwest corner of said E 1/2 of the SE 1/4 of Section 12, running thence East 4 rods, thence South 6 rods, thence West 4 rods, thence North 6 rods to the place of beginning.

 

LIVINGSTON COUNTY

 

Certain land in Cohoctah Township, Livingston County, Michigan described as:

 

Parcel 1

 

The East 390 feet of the East 50 rods of the SW 1/4 of Section 30, T4N, R4E.

 

35

 

Parcel 2

 

A parcel of land in the NW 1/4 of Section 31, T4N, R4E, described as follows: To find the place of beginning of this description commence at the N 1/4 post of said section; run thence N 89 degrees 13’ 06” W along the North line of said section, 330 feet to the place of beginning of this description; running thence S 00 degrees 52’ 49” W, 2167.87 feet; thence N 88 degrees 59’ 49” W, 60 feet; thence N 00 degrees 52’ 49” E, 2167.66 feet to the North line of said section; thence S 89 degrees 13’ 06” E along said North line of said section, 60 feet to the place of beginning.

 

MACOMB COUNTY

 

Certain land in Macomb Township, Macomb County, Michigan described as:

 

A parcel of land commencing on the West line of the E 1/2 of the NW 1/4 of fractional Section 6, 20 chains South of the NW corner of said E 1/2 of the NW 1/4 of Section 6; thence South on said West line and the East line of A. Henry Kotner’s Hayes Road Subdivision #15, according to the recorded plat thereof, as recorded in Liber 24 of Plats, on page 7, 24.36 chains to the East and West 1/4 line of said Section 6; thence East on said East and West 1/4 line 8.93 chains; thence North parallel with the said West line of the E 1/2 of the NW 1/4 of Section 6, 24.36 chains; thence West 8.93 chains to the place of beginning, all in T3N, R13E.

 

MANISTEE COUNTY

 

Certain land in Manistee Township, Manistee County, Michigan described as:

 

A parcel of land in the SW 1/4 of Section 20, T22N, R16W, described as follows: To find the place of beginning of this description, commence at the Southwest corner of said section; run thence East along the South line of said section 832.2 feet to the place of beginning of this description; thence continuing East along said South line of said section 132 feet; thence North 198 feet; thence West 132 feet; thence South 198 feet to the place of beginning, excepting therefrom the South 2 rods thereof which was conveyed to Manistee Township for highway purposes by a Quitclaim Deed dated June 13, 1919 and recorded July 11, 1919 in Liber 88 of Deeds on page 638 of Manistee County Records.

 

MASON COUNTY

 

Certain land in Riverton Township, Mason County, Michigan described as:

 

Parcel 1:  The South 10 acres of the West 20 acres of the S 1/2 of the NE 1/4 of Section 22, T17N, R17W.

 

Parcel 2:  A parcel of land containing 4 acres of the West side of highway, said parcel of land being described as commencing 16 rods South of the

 

36

 

Northwest corner of the NW 1/4 of the SW 1⁄4 of Section 22, T17N, R17W, running thence South 64 rods, thence NE’ly and N’ly and NW’ly along the W’ly line of said highway to the place of beginning, together with any and all right, title, and interest of Howard C. Wicklund and Katherine E. Wicklund in and to that portion of the hereinbefore mentioned highway lying adjacent to the E’ly line of said above described land.

 

MECOSTA COUNTY

 

Certain land in Wheatland Township, Mecosta County, Michigan described as:

 

A parcel of land in the SW 1/4 of the SW 1/4 of Section 16, T14N, R7W, described as beginning at the Southwest corner of said section; thence East along the South line of Section 133 feet; thence North parallel to the West section line 133 feet; thence West 133 feet to the West line of said Section; thence South 133 feet to the place of beginning.

 

MIDLAND COUNTY

 

Certain land in Ingersoll Township, Midland County, Michigan described as:

 

The West 200 feet of the W 1/2 of the NE 1/4 of Section 4, T13N, R2E.

 

MISSAUKEE COUNTY

 

Certain land in Norwich Township, Missaukee County, Michigan described as:

 

A parcel of land in the NW 1/4 of the NW 1/4 of Section 16, T24N, R6W, described as follows: Commencing at the Northwest corner of said section, running thence N 89 degrees 01’ 45” E along the North line of said section 233.00 feet; thence South 233.00 feet; thence S 89 degrees 01’ 45” W, 233.00 feet to the West line of said section; thence North along said West line of said section 233.00 feet to the place of beginning.  (Bearings are based on the West line of Section 16, T24N, R6W, between the Southwest and Northwest corners of said section assumed as North.)

 

MONROE COUNTY

 

Certain land in Whiteford Township, Monroe County, Michigan described as:

 

A parcel of land in the SW1/4 of Section 20, T8S, R6E, described as follows: To find the place of beginning of this description commence at the S 1/4 post of said section; run thence West along the South line of said section 1269.89 feet to the place of beginning of this description; thence continuing West along said South line of said section 100 feet; thence N 00 degrees 50’ 35” E, 250 feet; thence East 100 feet; thence S 00 degrees 50’ 35” W parallel with and 16.5 feet

 

37

 

distant W’ly of as measured perpendicular to the West 1/8 line of said section, as occupied, a distance of 250 feet to the place of beginning.

 

MONTCALM COUNTY

 

Certain land in Crystal Township, Montcalm County, Michigan described as:

 

The N 1/2 of the S 1/2 of the SE 1/4 of Section 35, T10N, R5W.

 

MONTMORENCY COUNTY

 

Certain land in the Village of Hillman, Montmorency County, Michigan described as:

 

Lot 14 of Hillman Industrial Park, being a subdivision in the South 1/2 of the Northwest 1/4 of Section 24, T31N, R4E, according to the plat thereof recorded in Liber 4 of Plats on Pages 32-34, Montmorency County Records.

 

MUSKEGON COUNTY

 

Certain land in Casnovia Township, Muskegon County, Michigan described as:

 

The West 433 feet of the North 180 feet of the South 425 feet of the SW 1/4 of Section 3, T10N, R13W.

 

NEWAYGO COUNTY

 

Certain land in Ashland Township, Newaygo County, Michigan described as:

 

The West 250 feet of the NE 1/4 of Section 23, T11N, R13W.

 

OAKLAND COUNTY

 

Certain land in Wixcom City, Oakland County, Michigan described as:

 

The E 75 feet of the N 160 feet of the N 330 feet of the W 526.84 feet of the NW 1/4 of the NW 1/4 of Section 8, T1N, R8E, more particularly described as follows: Commence at the NW corner of said Section 8, thence N 87 degrees 14’ 29” E along the North line of said Section 8 a distance of 451.84 feet to the place of beginning for this description; thence continuing N 87 degrees 14’ 29” E along said North section line a distance of 75.0 feet to the East line of the West 526.84 feet of the NW 1/4 of the NW 1/4 of said Section 8; thence S 02 degrees 37’ 09” E along said East line a distance of 160.0 feet; thence S 87 degrees 14’ 29” W a distance of 75.0 feet; thence N 02 degrees 37’ 09” W a distance of 160.0 feet to the place of beginning.

 

38

 

OCEANA COUNTY

 

Certain land in Crystal Township, Oceana County, Michigan described as:

 

The East 290 feet of the SE 1/4 of the NW 1/4 and the East 290 feet of the NE 1/4 of the SW 1/4, all in Section 20, T16N, R16W.

 

OGEMAW COUNTY

 

Certain land in West Branch Township, Ogemaw County, Michigan described as:

 

The South 660 feet of the East 660 feet of the NE 1/4 of the NE 1/4 of Section 33, T22N, R2E.

 

OSCEOLA COUNTY

 

Certain land in Hersey Township, Osceola County, Michigan described as:

 

A parcel of land in the North 1/2 of the Northeast 1/4 of Section 13, T17N, R9W, described as commencing at the Northeast corner of said Section; thence West along the North Section line 999 feet to the point of beginning of this description; thence S 01 degrees 54’ 20” E 1327.12 feet to the North 1/8 line; thence S 89 degrees 17’ 05” W along the North 1/8 line 330.89 feet; thence N 01 degrees 54’ 20” W 1331.26 feet to the North Section line; thence East along the North Section line 331 feet to the point of beginning.

 

OSCODA COUNTY

 

Certain land in Comins Township, Oscoda County, Michigan described as:

 

The East 400 feet of the South 580 feet of the W 1/2 of the SW 1/4 of Section 15, T27N, R3E.

 

OTSEGO COUNTY

 

Certain land in Corwith Township, Otsego County, Michigan described as:

 

Part of the NW 1/4 of the NE 1/4 of Section 28, T32N, R3W, described as: Beginning at the N 1/4 corner of said section; running thence S 89 degrees 04’ 06” E along the North line of said section, 330.00 feet; thence S 00 degrees 28’ 43” E, 400.00 feet; thence N 89 degrees 04’ 06” W, 330.00 feet to the North and South 1/4 line of said section; thence N 00 degrees 28’ 43” W along the said North and South 1/4 line of said section, 400.00 feet to the point of beginning; subject to the use of the N’ly 33.00 feet thereof for highway purposes.

 

39

 

OTTAWA COUNTY

 

Certain land in Robinson Township, Ottawa County, Michigan described as:

 

The North 660 feet of the West 660 feet of the NE 1/4 of the NW 1/4 of Section 26, T7N, R15W.

 

PRESQUE ISLE COUNTY

 

Certain land in Belknap and Pulawski Townships, Presque Isle County, Michigan described as:

 

Part of the South half of the Northeast quarter, Section 24, T34N, R5E, and part of the Northwest quarter, Section 19, T34N, R6E, more fully described as: Commencing at the East 1⁄4 corner of said Section 24; thence N 00 degrees15’47” E, 507.42 feet, along the East line of said Section 24 to the point of beginning; thence S 88 degrees15’36” W, 400.00 feet, parallel with the North 1/8 line of said Section 24; thence N 00 degrees15’47” E, 800.00 feet, parallel with said East line of Section 24; thence N 88 degrees15’36”E, 800.00 feet, along said North 1/8 line of Section 24 and said line extended; thence S 00 degrees15’47” W, 800.00 feet, parallel with said East line of Section 24; thence S 88 degrees15’36” W, 400.00 feet, parallel with said North 1/8 line of Section 24 to the point of beginning.

 

Together with a 33 foot easement along the West 33 feet of the Northwest quarter lying North of the North 1/8 line of Section 24, Belknap Township, extended, in Section 19, T34N, R6E.

 

ROSCOMMON COUNTY

 

Certain land in Gerrish Township, Roscommon County, Michigan described as:

 

A parcel of land in the NW 1/4 of Section 19, T24N, R3W, described as follows: To find the place of beginning of this description commence at the Northwest corner of said section, run thence East along the North line of said section 1,163.2 feet to the place of beginning of this description (said point also being the place of intersection of the West 1/8 line of said section with the North line of said section), thence S 01 degrees 01’ E along said West 1/8 line 132 feet, thence West parallel with the North line of said section 132 feet, thence N 01 degrees 01’ W parallel with said West 1/8 line of said section 132 feet to the North line of said section, thence East along the North line of said section 132 feet to the place of beginning.

 

40

 

SAGINAW COUNTY

 

Certain land in Chapin Township, Saginaw County, Michigan described as:

 

A parcel of land in the SW 1/4 of Section 13, T9N, R1E, described as follows: To find the place of beginning of this description commence at the Southwest corner of said section; run thence North along the West line of said section 1581.4 feet to the place of beginning of this description; thence continuing North along said West line of said section 230 feet to the center line of a creek; thence S 70 degrees 07’ 00” E along said center line of said creek 196.78 feet; thence South 163.13 feet; thence West 185 feet to the West line of said section and the place of beginning.

 

SANILAC COUNTY

 

Certain easement rights located across land in Minden Township, Sanilac County, Michigan described as:

 

The Southeast 1/4 of the Southeast 1/4 of Section 1, T14N, R14E, excepting therefrom the South 83 feet of the East 83 feet thereof.

 

SHIAWASSEE COUNTY

 

Certain land in Burns Township, Shiawassee County, Michigan described as:

 

The South 330 feet of the E 1/2 of the NE 1/4 of Section 36, T5N, R4E.

 

ST. CLAIR COUNTY

 

Certain land in Ira Township, St. Clair County, Michigan described as:

 

The N 1/2 of the NW 1/4 of the NE 1/4 of Section 6, T3N, R15E.

 

ST. JOSEPH COUNTY

 

Certain land in Mendon Township, St. Joseph County, Michigan described as:

 

The North 660 feet of the West 660 feet of the NW 1/4 of SW 1/4, Section 35, T5S, R10W.

 

TUSCOLA COUNTY

 

Certain land in Millington Township, Tuscola County, Michigan described as:

 

A strip of land 280 feet wide across the East 96 rods of the South 20 rods of the N 1/2 of the SE 1/4 of Section 34, T10N, R8E, more particularly described as commencing at the Northeast corner of Section 3, T9N, R8E, thence S 89 degrees 55’ 35” W along the South line of said Section 34 a distance of 329.65 feet, thence N 18 degrees 11’ 50” W a distance of 1398.67 feet to the South

 

41

 

1/8 line of said Section 34 and the place of beginning for this description; thence continuing N 18 degrees 11’ 50” W a distance of 349.91 feet; thence N 89 degrees 57’ 01” W a distance of 294.80 feet; thence S 18 degrees 11’ 50” E a distance of 350.04 feet to the South 1/8 line of said Section 34; thence S 89 degrees 58’ 29” E along the South 1/8 line of said section a distance of 294.76 feet to the place of beginning.

 

VAN BUREN COUNTY

 

Certain land in Covert Township, Van Buren County, Michigan described as:

 

All that part of the West 20 acres of the N 1/2 of the NE fractional 1/4 of Section 1, T2S, R17W, except the West 17 rods of the North 80 rods, being more particularly described as follows: To find the place of beginning of this description commence at the N 1/4 post of said section; run thence N 89 degrees 29’ 20” E along the North line of said section 280.5 feet to the place of beginning of this description; thence continuing N 89 degrees 29’ 20” E along said North line of said section 288.29 feet; thence S 00 degrees 44’ 00” E, 1531.92 feet; thence S 89 degrees 33’ 30” W, 568.79 feet to the North and South 1/4 line of said section; thence N 00 degrees 44’ 00” W along said North and South 1/4 line of said section 211.4 feet; thence N 89 degrees 29’ 20” E, 280.5 feet; thence N 00 degrees 44’ 00” W, 1320 feet to the North line of said section and the place of beginning.

 

WASHTENAW COUNTY

 

Certain land in Manchester Township, Washtenaw County, Michigan described as:

 

A parcel of land in the NE 1/4 of the NW 1/4 of Section 1, T4S, R3E, described as follows: To find the place of beginning of this description commence at the Northwest corner of said section; run thence East along the North line of said section 1355.07 feet to the West 1/8 line of said section; thence S 00 degrees 22’ 20” E along said West 1/8 line of said section 927.66 feet to the place of beginning of this description; thence continuing S 00 degrees 22’ 20” E along said West 1/8 line of said section 660 feet to the North 1/8 line of said section; thence N 86 degrees 36’ 57” E along said North 1/8 line of said section 660.91 feet; thence N 00 degrees22’ 20” W, 660 feet; thence S 86 degrees 36’ 57” W, 660.91 feet to the place of beginning.

 

WAYNE COUNTY

 

Certain land in Livonia City, Wayne County, Michigan described as:

 

Commencing at the Southeast corner of Section 6, T1S, R9E; thence North along the East line of Section 6 a distance of 253 feet to the point of beginning; thence continuing North along the East line of Section 6 a distance of 50 feet; thence Westerly parallel to the South line of Section 6, a distance of

 

42

 

215 feet; thence Southerly parallel to the East line of Section 6 a distance of 50 feet; thence easterly parallel with the South line of Section 6 a distance of 215 feet to the point of beginning.

 

WEXFORD COUNTY

 

Certain land in Selma Township, Wexford County, Michigan described as:

 

A parcel of land in the NW 1/4 of Section 7, T22N, R10W, described as beginning on the North line of said section at a point 200 feet East of the West line of said section, running thence East along said North section line 450 feet, thence South parallel with said West section line 350 feet, thence West parallel with said North section line 450 feet, thence North parallel with said West section line 350 feet to the place of beginning.

 

SECTION 14.  The Company is a transmitting utility under Section 9501(2) of the Michigan Uniform Commercial Code (M.C.L. 440.9501(2)) as defined in M.C.L. 440.9102(1)(aaaa).

 

IN WITNESS WHEREOF, said Consumers Energy Company has caused this Supplemental Indenture to be executed in its corporate name by its Chairman of the Board, President, a Vice President or its Treasurer and its corporate seal to be hereunto affixed and to be attested by its Secretary or an Assistant Secretary, and said The Bank of New York Mellon, as Trustee as aforesaid, to evidence its acceptance hereof, has caused this Supplemental Indenture to be executed in its corporate name by a Vice President and its corporate seal to be hereunto affixed and to be attested by an authorized signatory, in several counterparts, all as of the day and year first above written.

 

43

 

	
 
    	
CONSUMERS   ENERGY COMPANY
    
	
 
    	
 
    	
 
    
	
(SEAL)
    	
By:
    	
/s/   Srikanth Maddipati
    
	
 
    	
 
    	
Srikanth   Maddipati
    
	
Attest:
    	
 
    	
Vice   President and Treasurer
    
	
 
    	
 
    
	
/s/   Terry L. Christian
    	
 
    
	
Terry   L. Christian
    	
 
    
	
Assistant   Secretary
    	
 
    
	
 
    	
 
    
	
STATE   OF MICHIGAN
    	
)
    	
 
    
	
 
    	
ss.
    	
 
    
	
COUNTY   OF JACKSON
    	
)
    	
 
    

 

The foregoing instrument was acknowledged before me this 13th day of November, 2018, by Srikanth Maddipati, Vice President and Treasurer of CONSUMERS ENERGY COMPANY, a Michigan corporation, on behalf of the corporation.

 

	
 
    	
/s/   Margaret Hillman
    
	
 
    	
Margaret   Hillman, Notary Public
    
	
{Seal}
    	
State   of Michigan, County of Jackson
    
	
 
    	
My   Commission Expires: 06/14/22
    
	
 
    	
Acting   in the County of Jackson
    

 

S-1

 

	
 
    	
THE   BANK OF NEW YORK MELLON,
    
	
 
    	
AS   TRUSTEE
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(SEAL)
    	
By:
    	
/s/   Laurence J. O’Brien
    
	
 
    	
 
    	
Laurence   J. O’Brien
    
	
Attest:
    	
 
    	
Vice   President
    

 

	
/s/   Laytoya S. Elvin
    	
 
    
	
Latoya   S. Elvin
    	
 
    
	
Vice   President
    	
 
    

 

	
STATE   OF NEW JERSEY
    	
)
    	
 
    
	
 
    	
ss.
    	
 
    
	
COUNTY   OF PASSAIC
    	
)
    	
 
    

 

The foregoing instrument was acknowledged before me this 13th day of November, 2018, by Laurence J. O’Brien, a Vice President of THE BANK OF NEW YORK MELLON, as Trustee, a New York banking corporation, on behalf of the bank.

 

	
 
    	
/s/   Rick J. Fierro
    
	
 
    	
Rick   J. Fierro
    
	
 
    	
Notary   Public
    
	
 
    	
State   of New Jersey
    
	
 
    	
My   Commission Expires Nov 24, 2019
    

 

	
Prepared by:
    	
When recorded, return   to:
    
	
Melissa M. Gleespen
    	
Consumers Energy   Company
    
	
One Energy Plaza,   EP12-246
    	
Business Services Real   Estate Dept.
    
	
Jackson, MI 49201
    	
Attn: Margaret Hillman,   EP11-215
    
	
 
    	
One Energy Plaza
    
	
 
    	
Jackson, MI 49201
    

 

S-2Exhibit 10.2

 

*** Indicates portions of this exhibit that have been omitted and
filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

 

LICENSE
AND COLLABORATION AGREEMENT

This
LICENSE AND COLLABORATION Agreement (this “Agreement”) is entered into and made effective October 16,
2018 (“Effective Date”), by and between MRI Interventions, Inc., a Delaware corporation (“MRI”),
and Clinical Laserthermia Systems AB, a Swedish corporation (“CLS”). MRI and CLS may be referred to individually
as a “Party” and collectively as the “Parties.”

RECITALS

WHEREAS,
MRI designs, develops, offers, and sells systems, devices and technology related to performing minimally invasive surgical procedures
under direct, intra-procedural magnetic resonance imaging guidance (collectively, the “MRI Products”);

WHEREAS, CLS designs and develops minimally invasive methods for tissue thermal therapy and ablation and has developed laser treatment
solutions based on immune stimulating interstitial laser thermotherapy (imILT®) methods, including laser applicators (“Applicators”)
and the TRANBERG® Thermal Therapy System (the “CLS System”) (collectively, the “CLS Products”);
and

whereas,
the Parties desire to develop a strategic business relationship whereby each Party shall collaborate and share certain information
and technology with one another in a manner intended to benefit the Parties’ current businesses and to develop, evaluate,
and commercialize certain New Products (as defined herein) on the terms and conditions set forth in this Agreement.

AGREEMENT

NOW,
THEREFORE, in consideration of the representations, warranties, covenants, and agreements contained herein, and for other
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties mutually agree as follows:

1.       DEFINITIONS. As used
in this Agreement, the following terms shall have the meanings ascribed to them below, whether used in the singular or plural.
Other terms may be defined elsewhere in this Agreement and shall have the meanings indicated throughout this Agreement.

(a)       “Affiliate”
means, with respect to any Party, any other legal entity that, directly or indirectly, controls, is controlled by, or is under
common control with, such Party; provided, however, that in each case any such other entity shall be considered to be an Affiliate
only during the time period during which such control exists. For purposes of this definition, “control” (and derivatives
thereof including “controlled by” and “under common control with”), as used with respect to any entity,
means the possession, directly or indirectly, of more than fifty percent (50%) of the voting equity or ownership interest in or
of such entity.

(b)       “Applicable
Law” means all applicable provisions of all international, federal, state, and local statutes, laws, rules, regulations,
administrative codes, ordinances, decrees, orders,

    	 	1	 

     

    

decisions, injunctions, award judgments, permits, and licenses of or from governmental
authorities, including without limitation those relating to or governing the use or regulation of the subject item and the listing
standards or agreements of any national or international securities exchange.

(c)       “CLS
IP” means any and all Intellectual Property Developed by or for CLS, or acquired by or licensed to CLS, prior to the
Effective Date of this Agreement, or during the term of this Agreement to the extent related solely to the CLS Products, including
all versions and stages thereof, and all derivative works, improvements, or enhancements to any of the foregoing. Without limiting
the foregoing, the CLS IP shall include the CLS Patents and all specifications, manufacturing and development methodologies, software,
firmware and electronics, test and user data, and other Know-How relating to the CLS Products and proprietary to CLS.

(d)       “CLS
Patent(s)” shall mean (i) the United States and foreign patent applications and patents owned by CLS as of the Effective
Date set forth in Exhibit A hereto, and any continuations, continuations in part, divisions, extensions, reissues, reexaminations,
applications or substitutions with respect thereto and all foreign equivalents; and (ii) any and all other patents or patent applications
owned by CLS prior to or during the term of this Agreement with claims covering any aspect of the CLS Products.

(e)       “Commercialize”
means to promote, license, market, distribute, offer for sale, sell or provide product support for the products with respect to
which this term is used herein, and “Commercializing” and “Commercialization” shall be interpreted accordingly.

(f)       “Confidential
Information” means any and all forms and types of financial, business, marketing, operations, scientific, technical,
economic and engineering information, whether tangible or intangible, including without limitation, patterns, plans, compilations,
program devices, formulas, designs, prototypes, samples, methods, techniques, processes, procedures, programs, Intellectual Property,
Know-How, source code, object code, databases, data, proposed product names or marks, marketing materials or programs, plans, specifications,
information relating to past, present and prospective customers, users, partners, vendors and suppliers, manufacturing information,
business plans, price lists, costing information, employee and consulting relationship information, accounting and financial data,
profit margin, marketing and sales data, strategic plans, and all other proprietary information (including all originals, copies,
digests and summaries in any form) provided by or on behalf of one Party (“Discloser”) to the other Party (“Recipient”)
hereunder, including any and all non-public information regarding, related to, arising from or associated with this Agreement,
and the terms and conditions of this Agreement. Notwithstanding the foregoing to the contrary, Confidential Information shall exclude
any information that a Recipient can establish by documentary evidence, bearing the burden of proof: (i) was known to such Recipient
before receipt thereof from or on behalf of Discloser; (ii) was disclosed to Recipient by a third person who had a right to make
such disclosure without any obligation of confidentiality to Discloser; (iii) is available in the public domain without violation
of this Agreement by Recipient or other obligation of confidentiality; or (iv) is independently developed by Recipient or Recipient’s
Personnel without use of or reference to Discloser’s Confidential Information.

    	 	2	 

     

    

(g)       “Develop”
means, with respect to any Intellectual Property or New Products, to create, design, invent, reduce to practice, author, discover,
develop or conceive.

(h)       “Field”
means the field of medical procedures, processes and therapies related to neuro applications, including intracranial and spine
surgery.

(i)       “Gross
Margin” means total sales revenue less the cost of goods sold, divided by total sales revenue, expressed as a percentage.

(j)       “Intellectual
Property” means United States and foreign (a) patents, patent applications, patent disclosures and all related continuations,
continuations-in-part, divisionals, reissues, reexaminations, utility models, certificates of invention and design patents, patent
applications, registrations and applications for registrations; (b) trademarks and service marks, and trade dress, Internet domain
names, logos, trade names and corporate names, and registrations and applications for registration thereof; (c) works of authorship
and any copyright registrations or applications for registration thereof; (d) mask works and registrations and applications for
registration thereof; (e) computer software, data and documentation; (f) trade secrets, including without limitation ideas, specifications,
inventions, designs, Know-How, methods, discoveries, developments and any other proprietary information, whether patentable or
non-patentable and whether or not reduced to practice; (g) Confidential Information; and (h) all copies and tangible embodiments
of the foregoing.

(k)“Know-How”
means research and design details, technical requirements, specifications, and documentation, including without limitation, engineering
information, CAD drawings and files, 510(k) or PMA (as each defined herein) files and any subsequent letters to file, and verification,
validation and testing protocols.

(l)       “MRI
IP” means any and all Intellectual Property Developed by or for MRI, or acquired by or licensed to MRI, prior to the
Effective Date of this Agreement, or during the term of this Agreement to the extent related solely to the MRI Products, including
all versions and stages thereof, and all derivative works, improvements, or enhancements to any of the foregoing. Without limiting
the foregoing, the MRI IP shall include the MRI Patents and all specifications, manufacturing and development methodologies, software,
firmware and electronics, test and user data, and other Know-How relating to the MRI Products and proprietary to MRI.

(m)       “MRI
Patent(s)” shall mean (i) the United States and foreign patent applications and patents owned by MRI as of the Effective
Date set forth in Exhibit B hereto, and any continuations, continuations in part, divisions, extensions, reissues, reexaminations,
applications or substitutions with respect thereto and all foreign equivalents; and (ii) any and all other patents or patent applications
owned by MRI prior to or during the term of this Agreement with claims covering any aspect of the MRI Products.

(n)       “Newly
Developed IP” means all Intellectual Property that is Developed by the Parties in connection with the New Products, including
Know-How, and any feedback, improvements, modifications, enhancements to, or derivative works that are based on any feedback, recommendations,
or suggestions provided by or on behalf of either Party regarding the

    	 	3	 

     

    

Newly Developed IP. For the avoidance of doubt, Newly Developed
IP shall not include any CLS IP or MRI IP.

(o)       “New
Products” means any and all new products, systems, or technology developed by the Parties in connection with this Agreement
and identified in a Statement of Work, including without limitation products, devices, designs, applications, and technology integrating,
combining, or incorporating the CLS Products with MRI Products.

(p)       “Open
Source Software” means any software, source code, or other material that is distributed as “free software,”
“open source software,” or under a similar licensing or distribution model, including, without limitation, the GNU
General Public License, GNU Lesser General Public License, Mozilla Public License, BSD License, the Artistic License, the Netscape
Public License, the Sun Community Source License, the Sun Industry Standards License, and the Apache License.

(q)       “Personnel”
of a referenced Party (i.e. CLS Personnel or MRI Personnel, respectively) means any employee, independent contractor or other individual
person who is a provider of services (regardless of how such individual is classified for the purposes of applicable employment
and tax laws) of (i) such Party or its Affiliate(s) and/or (ii) any subcontractor of such Party providing any services in connection
with or relating to this Agreement.

2.
       COLLABORATION.

(a)       Purpose.
The Parties acknowledge and agree that the purpose of the Agreement is to establish a framework between the Parties pursuant to
which (i) CLS grants to MRI certain exclusive rights to sell the CLS Products in the Field as further set forth in Section 2(b)
below; and (ii) the Parties collaborate to Develop New Products for use and Commercialization in the Field.

(b)       CLS
Products. CLS hereby grants MRI the exclusive right to Commercialize the CLS Products and New Products in the Field. MRI intends
to exercise its rights under this Section in good faith to Commercialize the CLS Products in the clinical setting for the mutual
benefit of the Parties. MRI shall purchase from CLS and CLS agrees to sell to MRI the CLS Products for the fees set forth in Section
7(a) and in the amounts and quantities and pursuant to terms specified in written purchase orders mutually agreed upon by the Parties
(each a “Purchase Order”). In exchange for the above exclusive right granted to MRI and subject to Section 2(c)(ii),
the Parties agree that during the term of this Agreement, CLS will be MRI’s exclusive supplier of laser treatment equipment
within the Field. The Parties are also parties to that certain Distribution Agreement of even date herewith whereby CLS appoints
MRI as its exclusive distributor of certain CLS Products.

(c)       New
Product Development.

(i)       Statement
of Work. On or after the Effective Date, the Parties may enter into one or more written statement(s) of work mutually agreed
upon by the Parties (each, a “SOW”) to describe specific projects, the obligations of each Party, and the costs
and budget with respect to the Development described in such SOW. All SOWs must be approved in writing by the Parties prior to
the commencement thereof. The Joint Steering Committee (as defined below) is responsible for drafting each SOW. Each SOW shall

    	 	4	 

     

    

describe the respective obligations of and services to be provided by each Party and, once executed by each Party, shall be incorporated
herein by reference as though fully set forth herein. If there is a conflict between the provisions of this Agreement and any SOW,
the provisions of this Agreement shall control unless the SOW expressly and specifically provides otherwise by reference to this
Section 2(c)(i) with intent to modify.

(ii)       Initial
SOW. Promptly following the Effective Date, the Parties shall cooperate in good faith to agree upon the initial SOW, which
shall include without limitation terms governing the Development of thermometry software for the CLS Products for use in the Field,
including the scope of the Development be performed and the milestones and schedule for such Development (the “Initial
SOW”). The Parties agree and acknowledge that the Initial SOW shall be executed by the Parties by or before December
31, 2018. In the event the Parties are unable to agree upon the Initial SOW by December 31, 2018, each Party may, in its sole discretion,
terminate this Agreement in whole or in part (including by terminating the exclusive supplier obligation set forth in Section 2(b)).
In the foregoing event, nothing shall prevent either Party from seeking and entering into an arrangement with an alternate third
party provider or developer of thermometry software.

(iii)       Change
Order. Changes to any SOW shall become effective only upon the execution of a written change order (“Change Order”)
by the authorized representatives of each of the Parties. Each Change Order shall describe the impact of the change on the respective
obligations of each Party, and once executed by each Party, shall be incorporated herein by reference as though fully set forth
herein. For each Change Order, the Parties will evaluate in good faith any change that increases or decreases the scope or magnitude
of performance of the Collaboration, corresponding commercially reasonable increases or decreases in compensation to a Party, appropriate
and commercially reasonable revisions to the services and deliverable schedule, and the availability of the required resources
and prior commitments to other customers.

(iv)       Transfer
of Know-How. The Parties shall, to the extent commercially reasonable or necessary to Commercialize or Develop the New Products,
provide each other with all Know-How related to the CLS Products and MRI Products, respectively, to facilitate the Development
and Commercialization of New Products promptly following the Effective Date in the form and format mutually agreed by the Parties.

(v)       Development.
Notwithstanding anything herein to the contrary, the Parties agree that the Development of the New Products shall be conducted
in close consultation and co-operation between the Parties. Each Party shall keep the other Party fully and regularly informed
of the progress of the Development of New Products for which the Party is responsible and shall answer any question raised by the
other Party during performance and after completion of Development of New Products. 

(vi)       Costs.
CLS and MRI shall, as a main rule and unless otherwise agreed in a SOW, be jointly responsible for all costs associated with the
Development of New Products in the Field, including but not limited to costs associated with *** for new indications in the Field.
Each project and budget must be approved by both Parties prior

    	 	5	 

     

    

to initiation. Notwithstanding anything to the contrary herein,
should a specific project turn out to improve a CLS Product or a MRI Product in a way not originally anticipated in the SOW, the
Parties agree to negotiate in good faith an appropriate allocation of costs for such Development.

(vii)       Commercialization.

		(1)	MRI shall use commercially reasonable efforts to Commercialize the CLS Products and New Products
Developed in connection with this Agreement in the Field. MRI may not Commercialize the CLS Products or New Products under MRI’s
brand name unless mutually agreed by the Parties. Prior to MRI Commercializing New Products, the Parties will agree on what brand
name and trademark to use for such New Products in the Commercialization.

		(2)	Correspondingly, to the extent applicable, as determined by CLS in its own discretion, but subject
to Section 4(d), CLS shall have the right to Commercialize the New Products outside of the Field. In case of such Commercialization
by CLS, the Parties shall jointly negotiate in advance in good faith the commercial terms for any MRI Products included in such
commercial offerings by CLS and the Parties shall agree on the commercial terms to apply for the New Products.

		(3)	The Parties further agree to discuss in good faith the potential grant by
MRI to CLS of distribution rights outside of the US and Canadian markets to the joint offering of MRI Products, CLS Products and
New Products, on such markets where MRI is not active and where CLS has or wishes to establish market presence, either on its own
or through distribution partners. Such good faith discussions shall be based on each of the Parties’ strategies for establishing
sales channels outside of the US and Canada, with the mutual aim of maximizing the geographical reach and sales of the joint offering
of products.

(viii)       Open
Source. The New Products may, unless explicitly excluded in the relevant SOW, include Open Source Software; provided, that
each Party shall maintain an accurate and complete list of any Open Source Software incorporated into New Products by or on behalf
of such Party and, upon the other Party’s written request, provide such list to the other Party. However, the Parties agree
that copyleft or other licenses with similar restrictions may not be included in the New Products. Neither Party may subject any
proprietary portion of a New Product to any Open Source license obligation. Nothing in this Agreement limits any rights under,
or grants rights that supersede, the terms of any applicable Open Source license. Confidential Information may not be incorporated
in any Open Source Software or derivative thereof.

(d)       Regulatory.
MRI shall be responsible for any costs associated with clinical or regulatory filings, reports, or submissions required by Applicable
Law for MRI to Commercialize New Products or any derivative products Developed based on the Newly Developed IP in the Field, including
any Premarket Notifications (“510(k)s”) or Premarket Approval (“PMAs”) to the Food

    	 	6	 

     

    

and Drug
Administration (the “FDA”) for any New Products. MRI shall also be responsible for responding to and handling
any consumer complaints arising from the Commercialization of the New Products in the Field. Subject to Section (e)(ii) below,
MRI shall own all rights, title, and interests in any 510(k)s submitted by or on behalf of MRI for any New Products. Each Party
agrees, upon the reasonable request of the other Party, during or after the term of this Agreement, to take such further acts as
may be reasonably necessary or desirable for clinical or regulatory filings, reports, or submissions required by Applicable Law.

(e)       Right
to Manufacture and Escrow.

(i)       In
the event that either Party (1) experiences a Bankruptcy Event (as defined in Section 12(o)); or (2) ceases to do business, that
Party (the “Nonperforming Party”) shall immediately notify the other Party hereof in writing.

(ii)       In
order for the other Party to continue to Develop, and/or Commercialize the CLS/MRI Products and/or New Products in any of the situations
detailed in Section 2(e)(i), the Nonperforming Party shall take all actions reasonably necessary to allow the other Party to take
possession of, manufacture, or have manufactured such Products until such time as the other Party determines in good faith that
the Nonperforming Party is able to meet its obligations under this Agreement and any applicable SOW (the “Step-In Term”).
Without limiting the foregoing, the Nonperforming Party will allow the other Party to take possession of necessary related materials,
including but not limited to Know How, source code, encryption keys, administrative passwords, configurations, software, interfaces,
documentation, manufacturing specifications, and supplier lists (collectively, “Materials”). The Nonperforming
Party will use commercially reasonable efforts to assign, transfer, or subcontract to the other Party or its designee, at the other
Party’s option, any third-party agreements that are needed to take possession of, manufacture or have manufactured, Develop,
and/or Commercialize the CLS/MRI Products and/or New Products. In the event CLS is the Nonperforming Party, CLS shall grant to
MRI any rights necessary for MRI to use any applicable 510(k) necssary for MRI to continue the Commercialization of the CLS Products
and/or New Products in the Field.

(iii)       At
any time prior to the initiation of Commercialization of a fully developed New Product, the Parties shall enter into a three-party
escrow agreement for the escrow of the Materials (“Escrow Agreement”) in an SOW or other written agreement.
The Parties shall negotiate the terms and conditions of such an Escrow Agreement in good faith with an escrow agent mutually selected
by the Parties (“Escrow Agent”); provided, that the Parties agree that access to the Materials shall be permitted
by the Escrow Agent to either Party upon written certification by such Party to the Escrow Agent that any of the events described
in Sections 2(e)(i)(1)-(2) has occurred in relation to the Nonperforming Party (each, a “Release Event”). Upon
the Escrow Agent’s receipt of such a notice that a Release Event is at hand, the Escrow Agent shall inform the Nonperforming
Party thereof and allow the Nonperforming Party a five (5) business days period to evidence that no Release Event exists. If, after
such period, a Release Event is at hand, the Materials shall be released by the Escrow Agent and the Party to which the Materials
are released shall have a worldwide, royalty-free, non-exclusive license to use and maintain the Materials for its business purposes
and in accordance with the licenses

    	 	7	 

     

    

granted hereunder for the duration of the Step-In Term. In case of a Release Event, the Party
receiving the Materials shall compensate the Nonperforming Party for its use of the Materials in accordance with the commercial
terms set out in this Agreement (subject to deduction for the Party’s reasonable manufacturing costs) or as otherwise applied
between the Parties according to agreed SOWs.

(iv)       Without
limiting the foregoing, the Parties may agree in writing that MRI shall be entitled to manufacture the CLS Products and New Products
through a third party subcontractor or at a facility owned or operated by MRI; provided, that in no event shall MRI manufacture
CLS Products or New Products without the prior written consent of CLS and the prior agreement between the Parties on the commercial
terms and conditions to apply for such manufacturing (including but not limited to the license fee or other compensation due to
CLS for CLS Products and New Products manufactured by MRI). In connection with such a consent from CLS to manufacture under this
Section 2(e)(iv), CLS shall grant MRI such rights as may be reasonably necessary for MRI to manufacture and Commercialize the CLS
Products and/or New Products in the Field. CLS shall in such event also give MRI access to relevant parts of the Materials, as
needed for such manufacture.

 

(f)       
Support. In addition to the warranties set forth in this Agreement, CLS agrees to (i) provide all reasonable support requested
by MRI for the CLS Products; (ii) provide, at no additional charge, when and if generally available to CLS’s customers, any
updates, improvements, or enhancements to the CLS Products; (iii) without undue delay respond to any reasonable support requests
from MRI, and (iv) without undue delay correct or provide a work around acceptable to CLS for any errors in the CLS Products. For
the avoidance of doubt, MRI shall be solely responsible for the handling of all first line service and support communications in
relation to customers acquiring CLS Products or New Products for use in the Field from MRI hereunder.

3.
       GOVERNANCE.

(a)       Joint
Steering Committee. The Parties will form a joint steering committee, which will be responsible for the oversight of the development
and implementation of Development of New Products in accordance with the terms of this Agreement (“Joint Steering Committee”
or “JSC”). The Joint Steering Committee shall, among other things, (i) assist in the management of the development,
implementation, optimization and coordination of the New Products; (ii) review, and provide comment on SOWs; (iii) provide single-point
communication for seeking consensus within both Parties’ organizations regarding the Development, testing and Commercialization
of the New Products and any other significant activities relating to this Agreement; and (iv) address business disputes between
the Parties, and (v) monitor the progress of and facilitate changes to the Development of New Products as industry requirements
and the Parties’ interests evolve over time. The Parties acknowledge and agree that the Joint Steering Committee shall not
have the power to amend any of the terms or conditions of this Agreement or to bind either Party with respect to any obligations
not expressly provided in this Agreement or in any SOW. This Agreement shall not be amended expect pursuant to Section 12(f).
The JSC shall be composed of four (4) members — two (2) CLS executives or Personnel appointed by CLS, and two (2) MRI executives
or Personnel appointed by MRI (collectively, the “JSC Members”); provided, however, that in the event a

    	 	8	 

     

    

member
appointed by a Party shall not be in attendance at any meeting, the other member appointed by that same Party shall have full authority
to vote for both such members. The initial JSC Members are as set forth on Exhibit C to this Agreement. The removal of any
JSC Member may be effected only by the Party entitled to appoint such JSC Member. Any vacancy on the Joint Steering Committee may
be filled only by the Party entitled to appoint such JSC Member.

(b)       Meetings.
The Joint Steering Committee shall hold meetings regularly during the performance of work or Development under this Agreement or
any other SOW at times, dates, and locations to be mutually agreed upon by the JSC Members. Notwithstanding the foregoing, during
the pendency of any New Product Development, the Parties shall hold meetings no less than bi-weekly unless otherwise mutually agreed
upon by the Parties. In addition, meetings of the Joint Steering Committee may be called by any two of the JSC members, at any
time upon written notice delivered to the other JSC members at least fourteen (14) days prior to the proposed meeting date. Joint
Steering Committee meetings may be held, and individual JSC Members may attend, in person, by audio or video teleconference or
similar communications equipment by means of which all persons participating in the meeting can hear each other. Each Party shall
be responsible for all of its own expenses in participating in any Joint Steering Committee meetings.

4.
       INTELLECTUAL PROPERTY.

(a)       License
to MRI to CLS IP. CLS hereby grants to MRI and its Affiliate(s), a limited, fully-paid up, exclusive, perpetual, worldwide,
irrevocable (unless this Agreement is terminated for breach), non-transferable (except as permitted in this Agreement) right and
license to access, modify, create derivative works of, enhance, improve, and otherwise use the CLS IP solely in connection with
the (i) Commercialization of existing CLS Products in the Field in accordance with Section 2; and (ii) the Development and Commercialization
by MRI of any New Products in the Field; provided, however, that MRI shall not sublicense its rights hereunder without CLS’
prior written consent, except for non-exclusive sublicenses granted to MRI’s customers in the ordinary course of business,
and any permitted sublicense under this Section 4(a) shall be on terms no less protective of the CLS IP than those set forth herein.
Except for the rights granted in this Section 4, no other right in the CLS IP is conveyed, transferred, assigned or licensed
to MRI or any other person or entity, including by way of any implied license and CLS retains all right, title and interest therein.

(b)       CLS
Patents. With respect to any and all CLS Patents included in the CLS IP, the licensed rights set forth above in Section
4(a), solely with respect to any subject matter or claims expressly covered by the CLS Patents, shall terminate on the date
on which the last of any CLS Patents (or valid claims thereunder) expires or is held revoked, invalid or unenforceable by decision
of a court or other governmental agency of competent jurisdiction, unappealable or unappealed with the time allowed for appeal
having been expired. For the avoidance of doubt, to the extent any right in any CLS Patent expires or terminates in accordance
with the terms set forth in this Section 4(b), the license to any related Know-How proprietary to CLS shall survive such termination
or expiration.

(c)       Newly
Developed IP. Unless otherwise agreed in the related SOW, the Parties will jointly own all right, title, and interest in and
to all Newly Developed IP, without any obligation to make any payments of any kind to the other Party with respect to the Newly
Developed IP,

    	 	9	 

     

    

including, without limitation, revenue splits, royalties and commissions, or other accounting; provided, that (i)
MRI shall have the exclusive right in accordance with Section 2(b) to use, exploit, or Commercialize any Newly Developed IP in
the Field and, (ii) CLS shall have the exclusive right during the term of this Agreement, to use, exploit, or Commercialize any
Newly Developed IP outside of the Field. The SOW for each New Product shall set forth the rights and restrictions of each Party
as it relates to the jointly-owned Newly Developed IP. Each Party agrees, upon the reasonable request of the other Party, during
or after the term of this Agreement, to take such further acts as may be reasonably necessary or desirable to reflect and establish
the joint ownership of and other rights with respect to any Newly Developed IP, including but not limited to entering into applicable
cross license.

(d)       Exclusivity.
The Parties agree that the licenses set forth above in Section 4(a) and Section 4(b) shall be exclusive to MRI as
between (i) MRI and any third party, and (ii) MRI and CLS, in the Field. For avoidance of doubt, except as necessary to perform
its activities under this Agreement, CLS shall have no right to use, license, sell, offer for sale, Commercialize or exploit the
CLS IP within the Field or grant any third party the foregoing rights in the Field without the prior written consent of MRI. For
the avoidance of doubt, the foregoing will not prevent CLS from marketing and selling CLS Products or New Products to customers
outside the Field, or to customers using the CLS Products or New Products for general applications, including customers who use
CLS Products or New Products for multiple applications (such as general sales to radiology departments); provided, that in no event
shall CLS Commercialize any software or Applicators specifically designed for or intended to facilitate the use of the CLS Products
or New Products in the Field.

(e)       License
to CLS to MRI IP. MRI hereby grants to CLS and its Affiliates a limited, fully-paid up, non-exclusive, perpetual, worldwide,
non-transferable (except as permitted in this Agreement), irrevocable (unless the Agreement is terminated for breach) right and
license to access, modify, create derivative works of, enhance, improve, and otherwise use the MRI IP solely in connection with
the Development by CLS of any New Products; provided, however, that CLS shall not sublicense its rights hereunder without MRI’s
prior written consent and any permitted sublicense granted by CLS under this Section (e) shall be on terms no less protective of
the MRI IP than those set forth herein. Except for the rights granted in this Section 4(e), no other right in the MRI IP
is conveyed, transferred, assigned or licensed to CLS or any other person or entity, including by way of any implied license and
MRI retains all right, title and interest therein.

(f)       MRI
Patents. With respect to any and all MRI Patents included in the MRI IP, the licensed rights set forth above in Section
4(e), solely with respect to any subject matter or claims expressly covered by the MRI Patents, shall terminate on the date
on which the last of any MRI Patents (or valid claims thereunder) expires or is held revoked, invalid or unenforceable by decision
of a court or other governmental agency of competent jurisdiction, unappealable or unappealed with the time allowed for appeal
having been expired. For the avoidance of doubt, to the extent any right in any MRI Patent expires or terminates in accordance
with the terms set forth in this Section 4(f), the license to any related Know-How proprietary to MRI shall survive such termination
or expiration.

(g)       Trade
Secrets. Pursuant to the Defend Trade Secrets Act of 2016, the Parties acknowledge and understand, and shall cause any Personnel
to acknowledge and understand, that:

    	 	10	 

     

    

(i)       an
individual may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade
secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or
to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a
complaint or other document that is filed under seal in a lawsuit or other proceeding.

(ii)       Further,
an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the employer’s
trade secrets to the attorney and use the trade secret information in the court proceeding if the individual: (a) files any
document containing the trade secret under seal; and (b) does not disclose the trade secret, except pursuant to court order.

(h)       Intellectual
Property Prosecution and Enforcement. Each Party is responsible for all costs associated with the Intellectual Property it
solely owns. With respect to Intellectual Property solely owned by a Party, such Party shall have sole discretion to decide whether
to file for protection, the countries in which it will file for protection, the content of such filings, the conduct of the prosecution
of such filings, and whether to enforce or maintain such protection. With respect to jointly owned Newly Developed IP, except as
set forth in an SOW, the Parties jointly will prepare, file, prosecute and maintain any applications or registrations for Intellectual
Property associated therewith, provided, that each Party shall provide the other Party with all reasonable assistance and cooperation,
including the preparation and filing of any assignments, terminal disclaimers and other documents, required to procure, preserve
and the protections for all Newly Developed IP under the U.S. Patent Act and the patent laws of any other country or jurisdiction,
as applicable. The Parties will share the costs for such measures. The Parties shall promptly notify the other in writing of any
alleged or threatened infringement of any Intellectual Property of the other Party or Newly Developed IP of which they become aware.
The Parties shall reasonably cooperate in bringing any enforcement action against any third-party infringer of the New Products
and any Newly Developed IP and as set forth in the SOW. Should the Parties not agree on what legal measures to be taken with respect
to such enforcement actions, MRI shall have the sole power of decision and bear its costs with respect to enforcement actions in
the Field and CLS shall have the sole power of decision and bear its costs with respect to enforcement actions outside the Field.
The other Party shall then cooperate, at its own expense, in such enforcement action(s), including without limitation, by executing
such documents and providing such assistance as reasonably deemed necessary by the defending Party in connection with any action(s)
taken against such infringement.

5.
       CONFIDENTIALITY.

(a)       Obligations.
Each Recipient shall: (i) maintain Discloser’s Confidential Information in confidence during the term of this Agreement and
for a period of five (5) years thereafter, provided that any Confidential Information that comprises a trade secret shall be maintained
in confidence in perpetuity until such trade secret ceases to constitute a trade secret within the meaning of any Applicable Law
related to such trade secret, so long the reason such trade secret no longer so constitutes is not due the breach of confidentiality
by Recipient or its Personnel (or any person or entity to which such Party may have provided access to such trade secret), or due
to any violation of law (e.g. hacking of computer systems); (ii) limit dissemination 

    	 	11	 

     

    

to those of its Personnel who reasonably require
use or access to such Confidential Information in order to perform under this Agreement; (iii) not disclose such Confidential Information
to any other person or entity (other than Affiliates); and (iv) use such Confidential Information only to the extent necessary
to perform this Agreement. The Parties may establish by written agreement additional procedures and requirements with respect to
the treatment of Confidential Information, including the establishment of different clearance levels for Personnel having access
to Confidential Information, classification and marking of Confidential Information based on level of sensitivity (e.g. Confidential,
Highly Confidential, etc.), and the storage and transfer of Confidential Information by and between the Parties and their Personnel.
If Recipient is compelled to disclose any Confidential Information of Discloser by order of a court of competent jurisdiction,
any such disclosure will not be a breach of this Agreement; provided, that Recipient first gives Discloser prompt written notice
of such required disclosure in order to permit Discloser to seek all applicable governmental or judicial protection available.
Notwithstanding the foregoing to the contrary, each Party shall also have the right to share copies of this Agreement (as it may
be redacted to protect any commercially sensitive information) as part of any due diligence data room established by such Party.

(b)       Publicity.
Except as expressly provided in this Agreement or as required under applicable stock exchange regulations for any of the Parties,
any proposed publication, communication or presentation of information related to this Agreement, by a Party, shall be subject
to prior written approval by the other Party, which may, in its sole discretion, provide approval in writing. In the absence of
such written notice of approval, authorization is not considered to be given.

6.
       TERM AND TERMINATION.

(a)       Term.
This Agreement shall commence on the Effective Date and shall continue unless terminated pursuant to Section 2(c)(ii), Section
6(b) or Section 7(c).

(b)       Termination.

(i)       This
Agreement may be terminated upon written notice by either Party if the other Party is in material breach of its obligations hereunder
and has not cured such breach or shown such breach to be non-existent within thirty (30) days after notice requesting cure of the
breach.

(ii)       This
Agreement may be terminated upon written notice immediately by either Party upon a Bankruptcy Event of the other Party; provided
that, notwithstanding a termination pursuant to this Section 6(b)(ii), Sections 2(e) and 12(o) shall survive and the terminating
Party may exercise its rights under Sections 2(e) and 12(o).

(c)       Effect
of Termination; Survival. Within thirty (30) days after termination or expiration of this Agreement, each Party shall return
or destroy all Confidential Information of the other Party then in its possession, and each Party shall certify in writing that
all such Confidential Information has been returned or destroyed. To the extent that any such Confidential Information cannot be
returned or destroyed using commercially reasonable efforts, or if any such Confidential Information is required to be retained
following the expiration or termination of this Agreement

    	 	12	 

     

    

(such as pursuant to any “litigation hold” letter), any such
Confidential Information shall maintained in confidence in accordance with Section 5 until it has ceased to constitute Confidential
Information. Notwithstanding the foregoing or anything contained herein, neither Party shall be required to destroy or alter any
computer or network archival and backup tapes, or archival and backup files (collectively, “Archives”), provided
that such Archives shall be kept confidential in accordance with the terms of this Agreement. Upon expiration or termination of
this Agreement for any reason, including any termination for breach by the other Party, all provisions of this Agreement that,
by their nature should survive such termination or expiration to retain their meaning and significance, shall survive. Without
limiting the foregoing and unless terminated pursuant to Section 2(c)(ii), Section 6(b)
or Section 7(c), the following Sections of this Agreement shall survive and remain binding on the Parties following any expiration
or termination of this Agreement: Section 1 (Definitions); Section 2(e) (Right to Manufacture and Escrow); Section 4(a),
(b), (c), (d), (e) (f)-(h) (Intellectual Property); Section 5 (Confidentiality); this Section 6(c) (Effect of
Termination; Survival); Section 8 (Representations and Warranties); Section 9 (Indemnification); Section 10
(Limitation of Liability); and Section 12 (Miscellaneous).

7.
       COMPENSATION, MINIMUM VOLUMES AND MARKETING SAMPLES. 

(a)       Subject
to the terms and conditions of this Agreement, in consideration of the rights and licenses granted herein, MRI shall pay to CLS
the following payments:

(i)       For
each Applicator purchased by MRI, MRI shall pay the prices set forth herein; provided, that in the event changes in market conditions
substantially impact the pricing or availability of Applicators in the Field, the Parties agree to renegotiate in good faith to
reduce the prices set forth in this Section 7(a)(i):

(1)       
from the Effective Date until December 31, 2021, $*** per unit;

(2)       from
January 1, 2022 to December 31, 2025, $*** per unit; and

(3)       
after January 1, 2026, $*** per unit.

(ii)       For
each CLS System or a subsequent hardware/software system indicated for use in the Field and manufactured by or on behalf of CLS
for MRI, MRI shall pay $*** per unit.

(b)       MRI
shall provide CLS with a non-binding twelve month rolling forecast plan, updated monthly, outlining MRI’s volume forecasts
for Applicators and New Products covered by this Agreement (the “Forecast”). The Forecast is an estimate only
and is not a firm commitment on the part of MRI to purchase the quantities stated therein or any quantity, provided, however, that
CLS may plan production and invoice MRI for the rolling next three (3) month’s estimate in the Forecast (the “Three
Month Binding Forecast”).

(c)       Provided
that MRI does not experience any interruption to product usage in the market (i.e. due to backorder in supply from CLS or CLS’s
act or omission, regulatory recall or intellectual property claim), MRI commits to purchasing from CLS for sale within the Field
the

    	 	13	 

     

    

following minimum number of Applicators (the “Minimum Volumes”) after market launch date of the first
commercially viable Applicators hereunder (such market launch date to be agreed between the Parties) and, if such Minimum Volumes
are not met by MRI, CLS shall be entitled to notify MRI in writing of breach of contract at which point MRI has thirty (30) days
to cure and, failing such cure, CLS shall be entitled to terminate this Agreement by providing written notice to MRI within ten
(10) days after the expiration of the thirty (30) day cure period.

 

The following Minimum Volumes shall
apply;

 

●   ***   Applicators during the 12 month period from 0 to 12 from market launch date

●   ***   Applicators during the 12 month period from 13 to 24 from market launch date

●   ***   Applicators during the 12 month period from 25 to 36 from market launch date

●   ***   Applicators during the 12 month period from 37 to 48 from market launch date

●   ***   Applicators during the 12 month period from 48 to 60 from market launch date

 

In no event
less than six months prior to 60 months from the market launch date, the Parties shall negotiate in good faith the Minimum Volumes
and prices for the Applicators to apply for each 12-month period from such 60 months and onwards during the coming 60-month period;
provided, that in no event will the re-negotiated Minimum Volumes exceed ***% of the reasonably estimated market volume for procedures
in the Field and in no event will the re-negotiated prices have as effect that CLS’s gross margin for the sale of Applicators
to MRI will exceed ***% or fall below ***%. If, despite such good faith negotiations, the Parties are unable to agree on such continued
Minimum Volumes or prices for Applicators for the coming 60-month period, either Party shall be entitled to terminate this Agreement
in writing with not less than twelve (12) months’ written notice. This procedure shall further be repeated for any future
60-month period following thereafter.

 

It is expressly
agreed by the Parties that commercially viable Applicators ready for market launch will include at a minimum, (i) FDA cleared Neuro
Applicators and CLS System, (ii) mutually agreed upon lure fittings to ensure compatibility between CLS and MRI SmartFrame disposable
components, (iii) thermometry software including essential neuro specific features as outlined in first SOW due by December 31st,
2018 and (iv) peel-away sheath component as detailed by second SOW due by December 31st 2018.

 

(d)       Notwithstanding
the foregoing, CLS shall provide up to *** units of the Applicators to MRI per calendar year at CLS’s actual cost to be used
solely for demonstration and marketing purposes. CLS shall also provide *** (***) CLS Systems to MRI at CLS’s actual cost
for the following purposes:

(i)       ***
(***) as demonstration units for MRI’s territory managers;

(ii)      ***
(***) for MRI’s marketing department for tradeshows and training courses; and

(iii)     ***
(***) for placement, at sites agreed between the Parties, into key opinion leader accounts or show sites for clinical work and
feedback.

    	 	14	 

     

    

(e)       CLS
further agrees that, from market launch date according to the above, to keep a minimum of three (3) months of consignment inventory
of Applicators on site at MRI facility in Irvine (or another US location of MRI’s choice) to ensure any disruption to supply
can be mitigated with that extra three months of time. The Parties will base the level of consignment inventory on MRI’s
Three Month Binding Forecast.

(f)       MRI
shall pay CLS the undisputed fees set forth herein in full and complete consideration for the rights granted hereunder. All fees
shall be payable within thirty (30) days from the date specified herein or any applicable SOW after receipt of invoice therefor
from CLS.

8.
       REPRESENTATIONS AND WARRANTIES.

(a)       Mutual
Representations and Warranties. Each Party represents and warrants to the other Party that:

	(i)		it has the full right, power, and authority to enter into
this Agreement and to perform its obligations hereunder;

 

	(ii)		it has all necessary regulatory approvals, permits, or
licenses necessary for the purposes contemplated under this Agreement, including having a valid 510(k) for the Commercialization
by MRI of CLS Products and New Products prior to any Commercial launch;

 

	(iii)		this Agreement has been duly executed by it and is legally
binding upon it, is enforceable in accordance with its terms, and does not conflict with any agreement, instrument, or understanding,
oral or written, to which it is a Party or by which it may be bound, nor violate any material law or regulation of any court,
governmental body, or administrative or other agency having jurisdiction over it;

 

	(iv)		it shall perform its obligations described in this Agreement
in a timely and professional manner; and

 

	(v)		it shall comply with all Applicable Laws related to this
Agreement and the New Products, including the submission of any regulatory filings required by Applicable Law.

	(vi)		it has valid legal and/or beneficial title under the CLS/MRI
IP and CLS/MRI Products for the purposes contemplated under this Agreement and to grant the licenses or assignment of rights (as
the case may be) contained in this Agreement;

 

	(vii)		it has not received any material written communications
alleging that the CLS/MRI IP, the CLS/MRI Products, or the conduct of the Parties as currently proposed under this Agreement would
violate any of the Intellectual Property rights of a third party;

 

	(viii)		during the term of this Agreement, it will not to diminish,
alter or impair its rights under the CLS/MRI IP or the CLS/MRI Products;

    	 	15	 

     

    

 

	(ix)		such Party has not intentionally withheld any prior art
or unreasonably withheld noncumulative information material to the patentability of the CLS/MRI Patents from the U.S. Patent and
Trademark Office; and

 

	(x)		any warranties offered with respect to the CLS/MRI Products
as of the Effective Date shall apply with equal force to any CLS/MRI Products to the extent incorporated into, integrated with,
or combined with any New Products.

 

(b)       Disclaimer.
Except as expressly set forth in this Section 8 of this Agreement, neither Party makes any warranties, express or implied,
either in fact or by operation of law, by statute, or otherwise, with respect to the New Products or the licenses or rights granted
under this Agreement. Each Party further acknowledges that any Intellectual Property as provided by the other Party (including
any data included therein), respectively, is provided or made available “as is” and without any warranty as to completeness
or accuracy, and that any samples, parts, prototypes, work in process, or other products or materials provided by the other Party
have not been tested and that each Party assumes all risk with respect to the use thereof by such Party’s Personnel, including
any injury to person or damage to property that may result therefrom.

9.
       INDEMNIFICATION.

(a)       Indemnification
by MRI. MRI agrees to indemnify, defend, and hold harmless CLS, its Affiliates, and their respective officers, directors, Personnel,
and agents (collectively, the “CLS Indemnitees”) from and against any and all third-party claims, suits, actions,
demands, damages, and liabilities, including reasonable legal costs and fees to which any CLS Indemnitee may become subject to
as a result of any claim, demand, action, or other proceeding by any third party (each, a “Claim”) to the extent
such Claim arises out of (i) any allegation that the MRI IP infringes, misappropriates, or otherwise violates the Intellectual
Property, proprietary, or other rights of any third party; (ii) the use of the MRI Products; or (iii) MRI’s gross negligence,
fraud, or willful misconduct, or violation of Applicable law.

(b)       Indemnification
by CLS. CLS agrees to indemnify, defend, and hold harmless MRI, its Affiliates, and their respective officers, directors, Personnel,
and agents (collectively, the “MRI Indemnitees”) from and against any and all third-party claims, suits, actions,
demands, damages, and liabilities, including reasonable legal costs and fees to which any MRI Indemnitee may become subject to
as a result of any Claim to the extent such Claim arises out of: (i) any allegation that the CLS IP infringes, misappropriates,
or otherwise violates the Intellectual Property, proprietary, or other rights of any third party; (ii) the use of the CLS Products;
or (iii) CLS’s gross negligence, fraud, or willful misconduct, or violation of Applicable law.

(c)       Indemnification
Process. The Party seeking indemnification (the “Indemnified Party”) shall provide prompt written notice
of any Claim to the indemnifying Party (the “Indemnifying Party”); provided, however, that failure to give prompt
notice shall not affect the Indemnifying Party’s obligations under this Section 9 unless and to the extent that the
failure materially prejudices the defense of the matter. The Indemnified Party shall cooperate with the Indemnifying Party in all
reasonable respects, and at the Indemnifying Party’s expense, in connection with the investigation and defense of any such
Claim. The Indemnifying Party shall have sole control of the defense of any action on any such Claim and all negotiations for its

    	 	16	 

     

    

settlement or compromise; provided, that the Indemnified Party, at its sole cost and expense, shall have the right to engage its
own legal counsel, and if such settlement or compromise would (i) impose any costs, obligations, or limitations on the Indemnified
Party, or (ii) admit fault by the Indemnified Party, then the Indemnifying Party shall not settle or compromise the Claim without
the Indemnified Party’s prior written consent.

10.       LIMITATION
OF LIABILITY.

(a)       Limitations.
Except to the extent arising out of (i) a Party’s indemnification obligations under Section 9, (ii) a Party’s
breach of its confidentiality obligations under Section 5, (iii) a Party’s gross negligence, fraud, or willful misconduct,
or (iv) a Party’s breach of any exclusivity provisions in the Agreement, including the obligations and rights granted in
Sections 2(b), 4(a), and 4(d), neither Party nor its Affiliates will be liable under any contract, negligence, strict liability,
product liability or other legal or equitable theory for any indirect, incidental, consequential, multiple, special or punitive
damages or loss of profits or revenues, whether arising out of breach of contract, tort (including negligence) or otherwise (including
the entry into, performance, or breach of this Agreement), regardless of whether such loss or damage was foreseeable or the Party
against whom such liability is claimed has been advised of the possibility of such loss or damage, and notwithstanding the failure
of any agreed or other remedy of its essential purpose.

(b)       Liability
cap. With the exception of the cases stated in Section 10(a)(i)-(iv), each Party’s total cumulative liability to the
other Party will not exceed the greater of: (a) an amount equal to 100% of the total amounts payable by MRI to CLS under this Agreement;
and (b) 1,000,000 USD (one million US dollars).

11.       DISCUSSIONS
REGARDING A CLOSER COMMERCIAL COLLABORATION.

The Parties agree
to discuss and evaluate the possibilities of additional collaboration opportunities. The Parties agree to use good faith efforts
to conclude any such discussions by December 31, 2018, unless otherwise agreed by the Parties.

12.       MISCELLANEOUS
PROVISIONS.

(a)       Assignment.
Neither Party may assign or otherwise transfer this Agreement, directly or indirectly, including by operation of law, or otherwise,
or any of its rights or obligations, without the prior written consent of the other Party; provided, that a Party may assign or
transfer this Agreement without consent pursuant to a change of control or in connection with a merger or the sale of all or substantially
all of its business or assets, however structured. Any assignment or transfer in violation of this Agreement will be null and void.
This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and permitted assigns.

(b)       Entire
Agreement. This Agreement and any exhibits hereto constitute the entire agreement between the Parties with respect to the subject
matter of this Agreement and supersedes all prior discussions, understandings, negotiations, representations, or commitments, whether
written or oral.

    	 	17	 

     

    

(c)       Governing
Law; WAIVER OF JURY TRIAL. This Agreement is governed in accordance with the laws of the State of New York, without giving
effect to any choice of law rules that may direct the application of the laws of any other jurisdiction. The Parties agree to bring
any claims, controversies, or disputes arising from or related to this Agreement exclusively in the state and federal courts sitting
in New York, New York, and the Parties hereby expressly agree to submit to the exclusive venue and jurisdiction of such courts.
The Parties agree and acknowledge that the United Nations Convention on Contracts for the International Sale of Goods (CISG) shall
not apply. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY FOR ANY COURT PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY FOR WHICH A PARTY MAY BRING SUCH A COURT PROCEEDING.

(d)       Equitable
Relief. In any claim for equitable relief, each Party acknowledges that a breach by the other Party of this Agreement, including
Section 2 or 5, may cause the non-breaching Party irreparable harm, for which an award of damages would not be adequate
compensation and, in the event of such a breach or threatened breach, the non-breaching Party shall be entitled to seek equitable
relief, including in the form of a restraining order, orders for preliminary or permanent injunction, specific performance, and
any other relief that may be available from any court, and the Parties hereby waive any requirement for the showing of actual monetary
damages in connection with such relief. These remedies shall not be deemed to be exclusive but shall be in addition to all other
remedies available under this Agreement at law or in equity, subject to any express exclusions or limitations in this Agreement
to the contrary.

(e)       Waiver;
Discharge. The failure of any Party to enforce at any time any of the provisions of this Agreement shall not, absent an express
written waiver signed by the authorized representative of the Party making such waiver specifying the provision being waived, be
construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part thereof or
the right of the Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be
held to be a waiver of any other or subsequent breach.

(f)       Amendment.
This Agreement may not be amended, by course of conduct or otherwise, except pursuant to a written amendment that expressly refers
to this Agreement and this Section 12(f) and signed by the authorized representatives of each of the Parties.

(g)       Notices.
All notices or other communications to a Party required or permitted hereunder shall be in writing and shall be delivered personally
or shall be sent by a reputable express delivery service or by certified mail, postage prepaid with return receipt requested, addressed
as follows:

To MRI:

Chief Executive Officer

MRI Interventions, Inc.

5 Musick

Irvine, CA 92618

 

    	 	18	 

     

    

To CLS:

Chief Executive Officer

Clinical Laserthermia Systems AB

Medicon Village | Scheelevägen 2

SE-223 81 Lund, Sweden

(h)       Expenses.
Except as expressly provided herein, each Party shall pay its own expenses incident to this Agreement and the preparation for,
and consummation of, the transactions provided for in this Agreement.

(i)       Titles
and Headings; Construction. The titles and headings to Sections of this Agreement are inserted for the convenience of reference
only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. This Agreement shall be
construed without regard to any presumption or other rule requiring construction hereof against the Party causing this Agreement
to be drafted.

(j)       Severability.
If any provision of this Agreement is held invalid, illegal, or unenforceable, such provision shall be enforced to the maximum
extent permissible, and the remaining provisions shall nonetheless be enforceable according to their terms.

(k)       Relationship.
This Agreement does not make either Party the employee, agent, or legal representative of the other for any purpose whatsoever.
Neither Party is granted any right or authority to assume or to create any obligation or responsibility, express or implied, on
behalf of or in the name of the other Party. In fulfilling its obligations pursuant to this Agreement, each Party shall be acting
as an independent contractor, and no partnership, joint venture or other similar relationship, or any fiduciary duty or other similar
duty relating to any such relationship, shall be implied as to apply between the Parties or their respect Personnel.

(l)       Benefit.
Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the Parties to this Agreement or
their respective successors or permitted assigns, any rights, remedies, obligations, or liabilities under or by reason of this
Agreement.

(m)       Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed as original and all of which together
shall constitute one instrument. A signed copy of this Agreement delivered by facsimile, e-mail, or other means of electronic transmission
(to which a PDF copy is attached) shall be deemed to have the same legal effect as delivery of an original signed copy of this
Agreement.

(n)       Execution
of Further Documents. Each Party agrees to execute and deliver without further consideration any further applications, licenses,
assignments, or other documents, and to perform such other lawful acts as the other Party may reasonably request to fully secure
or evidence the rights or interests herein.

(o)       Bankruptcy.
The Parties acknowledge and agree that the Intellectual Property licensed hereunder is “intellectual property” as defined
in Section 101(35A) of the Bankruptcy Code, which have been licensed hereunder in a contemporaneous exchange for value. The Parties
further acknowledge and agree that if a Party or any of its permitted successors or assigns: (i) becomes insolvent or generally
fails to pay, or admits in writing its inability to pay, its debts as

    	 	19	 

     

    

they become due; (ii) applies for, or consents to, the appointment
of a trustee, receiver or other custodian for it, or makes a general assignment for the benefit of its creditors; (iii) commences,
or has commenced against it, any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy
or insolvency law, or any dissolution or liquidation proceedings; or (iv) elects to reject, or a trustee on behalf of it elects
to reject, this Agreement or any agreement supplementary hereto, pursuant to Section 365 of the Bankruptcy Code, or if this Agreement
or any agreement supplementary hereto is deemed to be rejected pursuant to Section 365 of the Bankruptcy Code for any reason (each
a “Bankruptcy Event”), then this Agreement, and any agreement supplementary hereto, shall be governed by Section
365(n) of the Bankruptcy Code and the licensee Party will retain and may elect to fully exercise its rights under this Agreement
in accordance with Section 365(n) of the Bankruptcy Code.

[Remainder of page intentionally left
blank; signature page(s) follow]

    	 	20	 

     

    

IN WITNESS WHEREOF,
each of the Parties has caused this LICENSE AND COLLABORATION AGREEMENT to be executed by their duly authorized representatives
as of the Effective Date.

	MRI INTERVENTIONS, INC.	 	CLINICAL LASERTHERMIA SYSTEMS AB
	 	 	 
	By: /s/ Joseph Burnett	 	By: /s/ Lars-Erik T. Eriksson
	 	 	 
	Name: Joseph Burnett	 	Name: Lars-Erik T. Eriksson
	 	 	 
	Title:   President & CEO	 	Title:   CEO
	 	 	 
	 	 	 

 

 

ATTACHMENTS:

EXHIBIT A: CLS PATENTS AND PATENT APPLICATIONS

EXHIBIT B: MRI PATENTS AND PATENT APPLICATIONS

EXHIBIT C: JSC Members

    	 	21	 

     

    

Exhibit
A

CLS
PATENTS AND PATENT APPLICATIONS

 

 

 

 

 

 

 

    	 

    	 

    

Exhibit
B

MRI
PATENTS AND PATENT APPLICATIONS

 

 

 

 

 

 

 

    	 

    	 

    

 

Exhibit
C

JSC
MEMBERS

 

 

 

Members appointed by MRI:

Joe Burnett – President And CEO

Pete Piferi – Chief Operating Officer

Members appointed by CLS:

Lars-Erik Eriksson, CEO

Dan Mogren, Chief Commercial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}]]