Document:

Exhibit 10.1

 

Execution
Version

 

PURCHASE
AGREEMENT

 

PURCHASE
AGREEMENT (the “Agreement”), dated as of May 14, 2020, by and between BEYOND AIR, INC., a Delaware
corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company
(the “Investor”).

 

WHEREAS:

 

Subject
to the terms and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to
buy from the Company, up to Forty Million Dollars ($40,000,000) of the Company’s common stock, $0.0001 par value per share
(the “Common Stock”). The shares of Common Stock to be purchased hereunder (including, without limitation,
the Initial Purchase Shares (as defined herein), if any) are referred to herein as the “Purchase Shares.”

 

NOW
THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1.
CERTAIN DEFINITIONS.

 

For
purposes of this Agreement, the following terms shall have the following meanings:

 

(a)
“Accelerated Purchase Date” means, with respect to any Accelerated Purchase made pursuant to Section 2(c)
hereof, the Business Day immediately following the applicable Purchase Date with respect to the corresponding Regular Purchase
referred to in Section 2(c) hereof.

 

(b)
“Accelerated Purchase Floor Price” means $1.00, which shall be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any such
reorganization, recapitalization, non-cash dividend, stock split or other similar transaction, the Accelerated Purchase Floor
Price shall mean the lower of (i) the adjusted price and (ii) $1.00.

 

(c)
“Accelerated Purchase Minimum Price Threshold” means, with respect to any Accelerated Purchase made pursuant
to Section 2(c) hereof, any minimum per share price threshold set forth by the Company in the applicable Accelerated Purchase
Notice.

 

(d)
“Accelerated Purchase Notice” means, with respect to an Accelerated Purchase made pursuant to Section 2(c)
hereof, an irrevocable written notice from the Company to the Investor directing the Investor to purchase the applicable Accelerated
Purchase Share Amount at the Accelerated Purchase Price on the Accelerated Purchase Date for such Accelerated Purchase in accordance
with this Agreement.

 

(e)
“Accelerated Purchase Price” means, with respect to an Accelerated Purchase made pursuant to Section 2(c)
hereof, the lower of (i) ninety-five percent (95%) of the VWAP for the period beginning at 9:30:01 a.m., Eastern time, on
the applicable Accelerated Purchase Date, or such other time publicly announced by the Principal Market as the official open (or
commencement) of trading on the Principal Market on such applicable Accelerated Purchase Date (the “Accelerated Purchase
Commencement Time”), and ending at the earliest of (A) 4:00:00 p.m., Eastern time, on such applicable Accelerated Purchase
Date, or such other time publicly announced by the Principal Market as the official close of trading on the Principal Market on
such applicable Accelerated Purchase Date, (B) such time, from and after the Accelerated Purchase Commencement Time for such Accelerated
Purchase, that the total number (or volume) of shares of Common Stock traded on the Principal Market has exceeded the applicable
Accelerated Purchase Share Volume Maximum, and (C) such time, from and after the Accelerated Purchase Commencement Time for such
Accelerated Purchase, that the Sale Price has fallen below the applicable Accelerated Purchase Minimum Price Threshold (such earliest
of (i)(A), (i)(B) and (i)(C) above, the “Accelerated Purchase Termination Time”), and (ii) the Closing Sale
Price of the Common Stock on such applicable Accelerated Purchase Date (to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction).

 

    	 

    	 

    

 

(f)
“Accelerated Purchase Share Amount” means, with respect to an Accelerated Purchase made pursuant to Section
2(c) hereof, the number of Purchase Shares directed by the Company to be purchased by the Investor in an Accelerated Purchase
Notice, which number of Purchase Shares shall not exceed the lesser of (i) 300% of the number of Purchase Shares directed by the
Company to be purchased by the Investor pursuant to the corresponding Regular Purchase Notice for the corresponding Regular Purchase
referred to in Section 2(c) hereof (subject to the Purchase Share limitations contained in Section 2(b) hereof)
and (ii) an amount equal to (A) the Accelerated Purchase Share Percentage multiplied by (B) the total number (or volume) of shares
of Common Stock traded on the Principal Market during the period on the applicable Accelerated Purchase Date beginning at the
Accelerated Purchase Commencement Time for such Accelerated Purchase and ending at the Accelerated Purchase Termination Time for
such Accelerated Purchase; provided, however, that the Accelerated Purchase Share Amount pursuant to a single Accelerated
Purchase Notice shall not exceed an amount that would result in the beneficial ownership by the Investor and its affiliates of
more than 4.99% of the then issued and outstanding shares of Common Stock.

 

(g)
“Accelerated Purchase Share Percentage” means, with respect to an Accelerated Purchase made pursuant to Section
2(c) hereof, thirty percent (30%).

 

(h)
“Accelerated Purchase Share Volume Maximum” means, with respect to an Accelerated Purchase made pursuant to
Section 2(c) hereof, a number of shares of Common Stock equal to (i) the applicable Accelerated Purchase Share Amount properly
directed by the Company to be purchased by the Investor in the applicable Accelerated Purchase Notice for such Accelerated Purchase,
divided by (ii) the Accelerated Purchase Share Percentage (to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction).

 

(i)
“Additional Accelerated Purchase Date” means, with respect to an Additional Accelerated Purchase made pursuant
to Section 2(d) hereof, the Business Day (i) that is the Accelerated Purchase Date with respect to the corresponding Accelerated
Purchase referred to in Section 2(c) hereof and (ii) on which the Investor receives, prior to 1:00 p.m., Eastern time,
on such Business Day, a valid Additional Accelerated Purchase Notice for such Additional Accelerated Purchase in accordance with
this Agreement.

 

(j)
“Additional Accelerated Purchase Floor Price” means $1.00, which shall be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any such
reorganization, recapitalization, non-cash dividend, stock split or other similar transaction, the Additional Accelerated Purchase
Floor Price shall mean the lower of (i) the adjusted price and (ii) $1.00.

 

(k)
“Additional Accelerated Purchase Minimum Price Threshold” means, with respect to an Additional Accelerated
Purchase made pursuant to Section 2(d) hereof, any minimum per share price threshold set forth by the Company in the applicable
Additional Accelerated Purchase Notice.

 

    	-2-

    	 

    

 

(l)
“Additional Accelerated Purchase Notice” means, with respect to an Additional Accelerated Purchase made pursuant
to Section 2(d) hereof, an irrevocable written notice from the Company to the Investor directing the Investor to purchase
the applicable Additional Accelerated Purchase Share Amount at the Additional Accelerated Purchase Price for such Additional Accelerated
Purchase in accordance with this Agreement.

 

(m)
“Additional Accelerated Purchase Price” means, with respect to an Additional Accelerated Purchase made pursuant
to Section 2(d) hereof, the lower of (i) ninety-five percent (95%) of the VWAP for the period on the applicable Additional
Accelerated Purchase Date, beginning at the latest of (A) the applicable Accelerated Purchase Termination Time with respect to
the corresponding Accelerated Purchase referred to in Section 2(d) hereof on such Additional Accelerated Purchase Date,
(B) the applicable Additional Accelerated Purchase Termination Time with respect to the most recently completed prior Additional
Accelerated Purchase on such Additional Accelerated Purchase Date, as applicable, and (C) the time at which all Purchase Shares
subject to all prior Accelerated Purchases and Additional Accelerated Purchases (as applicable), including, without limitation,
those that have been effected on the same Business Day as the applicable Additional Accelerated Purchase Date with respect to
which the applicable Additional Accelerated Purchase relates, have theretofore been received by the Investor as DWAC Shares in
accordance with this Agreement (such latest of (i)(A), (i)(B) and (i)(C) above, the “Additional Accelerated Purchase
Commencement Time”), and ending at the earliest of (X) 4:00 p.m., Eastern time, on such Additional Accelerated Purchase
Date, or such other time publicly announced by the Principal Market as the official close of trading on the Principal Market on
such Additional Accelerated Purchase Date, (Y) such time, from and after the Additional Accelerated Purchase Commencement Time
for such Additional Accelerated Purchase, that the total number (or volume) of shares of Common Stock traded on the Principal
Market has exceeded the applicable Additional Accelerated Purchase Share Volume Maximum, and (Z) such time, from and after the
Additional Accelerated Purchase Commencement Time for such Additional Accelerated Purchase, that the Sale Price has fallen below
the applicable Additional Accelerated Purchase Minimum Price Threshold (such earliest of (i)(X), (i)(Y) and (i)(Z) above, the
“Additional Accelerated Purchase Termination Time”), and (ii) the Closing Sale Price of the Common Stock on
such Additional Accelerated Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend,
stock split, reverse stock split or other similar transaction).

 

(n)
“Additional Accelerated Purchase Share Amount” means, with respect to an Additional Accelerated Purchase made
pursuant to Section 2(d) hereof, the number of Purchase Shares directed by the Company to be purchased by the Investor
on an Additional Accelerated Purchase Notice, which number of Purchase Shares shall not exceed the lesser of (i) 300% of the number
of Purchase Shares directed by the Company to be purchased by the Investor pursuant to the corresponding Regular Purchase Notice
for the corresponding Regular Purchase referred to in Section 2(d) hereof (subject to the Purchase Share limitations contained
in Section 2(a) hereof) and (ii) an amount equal to (A) the Additional Accelerated Purchase Share Percentage multiplied
by (B) the total number (or volume) of shares of Common Stock traded on the Principal Market during the period on the applicable
Additional Accelerated Purchase Date beginning at the Additional Accelerated Purchase Commencement Time for such Additional Accelerated
Purchase and ending at the Additional Accelerated Purchase Termination Time for such Additional Accelerated Purchase; provided,
however, that the Additional Accelerated Purchase Share Amount pursuant to a single Additional Accelerated Purchase Notice
shall not exceed an amount that would result in the beneficial ownership by the Investor and its affiliates of more than 4.99%
of the then issued and outstanding shares of Common Stock.

 

(o)
“Additional Accelerated Purchase Share Percentage” means, with respect to an Additional Accelerated Purchase
made pursuant to Section 2(d) hereof, thirty percent (30%).

 

    	-3-

    	 

    

 

(p)
“Additional Accelerated Purchase Share Volume Maximum” means, with respect to an Additional Accelerated Purchase
made pursuant to Section 2(d) hereof, a number of shares of Common Stock equal to (i) the applicable Additional Accelerated
Purchase Share Amount properly directed by the Company to be purchased by the Investor in the applicable Additional Accelerated
Purchase Notice for such Additional Accelerated Purchase, divided by (ii) the Additional Accelerated Purchase Share Percentage
(to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or
other similar transaction).

 

(q)
“Alternate Adjusted Regular Purchase Share Limit” means, with respect to a Regular Purchase made pursuant to
Section 2(b) hereof, the maximum number of Purchase Shares which, taking into account the applicable per share Purchase
Price therefor calculated in accordance with this Agreement, would enable the Company to deliver to the Investor, on the applicable
Purchase Date for such Regular Purchase, a Regular Purchase Notice for a Purchase Amount equal to, or as closely approximating
without exceeding, Two Hundred Fifty Thousand Dollars ($250,000).

 

(r)
“Available Amount” means, initially, Forty Million Dollars ($40,000,000) in the aggregate, which amount shall
be reduced by (i) the Initial Purchase Amount upon the purchase of the Initial Purchase Shares by the Investor pursuant to Section
2(a) hereof, as applicable, and (ii) the Purchase Amount each time the Investor purchases shares of Common Stock (other than
the Initial Purchase Shares, if any) pursuant to Section 2 hereof.

 

(s)
“Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

(t)
“Base Prospectus” means the Company’s final base prospectus, dated July 2, 2019, a preliminary form of
which is included in the Registration Statement, including the documents incorporated by reference therein.

 

(u)
“Business Day” means any day on which the Principal Market is open for trading, including any day on which
the Principal Market is open for trading for a period of time less than the customary time.

 

(v)
“Closing Sale Price” means, for any security as of any date, the last closing sale price for such security
on the Principal Market as reported by the Principal Market.

 

(w)
“Confidential Information” means any information disclosed by either party to the other party, either directly
or indirectly, in writing, orally or by inspection of tangible objects (including, without limitation, documents, prototypes,
samples, plant and equipment), which is designated as “Confidential,” “Proprietary” or some similar designation.
Information communicated orally shall be considered Confidential Information if such information is confirmed in writing as being
Confidential Information within ten (10) Business Days after the initial disclosure. Confidential Information may also include
information disclosed to a disclosing party by third parties. Confidential Information shall not, however, include any information
which (i) was publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing
party; (ii) becomes publicly known and made generally available after disclosure by the disclosing party to the receiving party
through no action or inaction of the receiving party; (iii) is already in the possession of the receiving party without confidential
restriction at the time of disclosure by the disclosing party as shown by the receiving party’s files and records immediately
prior to the time of disclosure; (iv) is obtained by the receiving party from a third party without a breach of such third party’s
obligations of confidentiality; or (v) is independently developed by the receiving party without use of or reference to the disclosing
party’s Confidential Information, as shown by documents and other competent evidence in the receiving party’s possession.

 

    	-4-

    	 

    

 

(x)
“Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(y)
“DTC” means The Depository Trust Company, or any successor performing substantially the same function for the
Company.

 

(z)
“DWAC Shares” means shares of Common Stock that are (i) issued in electronic form, (ii) freely tradable and
transferable and without restriction on resale and (iii) timely credited by the Company to the Investor’s or its designee’s
specified Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program,
or any similar program hereafter adopted by DTC performing substantially the same function.

 

(aa)
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

(bb)
“Floor Price” means $0.25, which shall be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction and, effective upon the consummation of any such reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction, the Floor Price shall mean the lower of (i) the adjusted price
and (ii) $0.25.

 

(cc)
“Fully Adjusted Regular Purchase Share Limit” means, with respect to any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction from and after the date of this Agreement, the Regular Purchase Share
Limit (as defined in Section 2(b) hereof) in effect on the applicable date of determination, after giving effect to the
full proportionate adjustment thereto made pursuant to Section 2(b) hereof for or in respect of such reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction.

 

(dd)
“Initial Prospectus Supplement” means the prospectus supplement of the Company relating to the Purchase Shares,
including the accompanying Base Prospectus, to be prepared and filed by the Company with the SEC pursuant to Rule 424(b)(5) under
the Securities Act and in accordance with Section 5(a) hereof, together with all documents and information incorporated
therein by reference.

 

(ee)
“Initial Purchase Amount” means, with respect to the Initial Purchase made pursuant to Section 2(a)
hereof, as applicable, the number of Initial Purchase Shares directed by the Company to be purchased by the Investor in the Initial
Purchase Notice, which number of Initial Purchase Shares shall not exceed 325,000 (to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement).

 

(ff)
“Initial Purchase Notice” means, with respect to the Initial Purchase made pursuant to Section 2(a)
hereof, as applicable, an irrevocable written notice from the Company to the Investor directing the Investor to buy the Initial
Purchase Amount of Initial Purchase Shares as specified by the Company therein at the Initial Purchase Price within 30 days of
the Commencement Date.

 

(gg)
“Initial Purchase Price” means, with respect to the Initial Purchase made pursuant to Section 2(a) hereof,
as applicable, $8.58 per share (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock
split or other similar transaction that occurs on or after the date of this Agreement).

 

    	-5-

    	 

    

 

(hh)
“Material Adverse Effect” means any material adverse effect on (i) the enforceability of any Transaction Document,
(ii) the results of operations, assets, business or financial condition of the Company and its Subsidiaries, taken as a whole,
other than any material adverse effect that resulted exclusively from (A) any change in the United States or foreign economies
or securities or financial markets in general that does not have a disproportionate effect on the Company and its Subsidiaries,
taken as a whole, (B) any change that generally affects the industry in which the Company and its Subsidiaries operate that does
not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole, (C) any change arising in connection
with earthquakes, hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening
of any such hostilities, acts of war, sabotage or terrorism or military actions existing as of the date hereof, (D) any action
taken by the Investor, its affiliates or its or their successors and assigns with respect to the transactions contemplated by
this Agreement, (E) the effect of any change in applicable laws or accounting rules that does not have a disproportionate effect
on the Company and its Subsidiaries, taken as a whole, or (F) any change resulting from compliance with terms of this Agreement
or the consummation of the transactions contemplated by this Agreement, or (iii) the Company’s ability to perform in any
material respect on a timely basis its obligations under any Transaction Document to be performed as of the date of determination.

 

(ii)
“Maturity Date” means the first day of the month immediately following the thirty-six (36) month anniversary
of the Commencement Date.

 

(jj)
“PEA Period” means the period commencing at 9:30 a.m., Eastern time, on the fifth (5th) Business
Day immediately prior to the filing of any post-effective amendment to the Registration Statement (as defined herein) or New Registration
Statement (as such term is defined in the Registration Rights Agreement), and ending at 9:30 a.m., Eastern time, on the Business
Day immediately following, the effective date of any post-effective amendment to the Registration Statement (as defined herein)
or New Registration Statement (as such term is defined in the Registration Rights Agreement).

 

(kk)
“Person” means an individual or entity including but not limited to any limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

 

(ll)
“Principal Market” means The Nasdaq Capital Market (or any nationally recognized successor thereto); provided,
however, that in the event the Company’s Common Stock is ever listed or traded on The Nasdaq Global Market, The Nasdaq Global
Select Market, the New York Stock Exchange, the NYSE American, the NYSE Arca, the OTC Bulletin Board, or the OTCQX or OTCQB operated
by the OTC Markets Group, Inc. (or any nationally recognized successor to any of the foregoing), then the “Principal Market”
shall mean such other market or exchange on which the Company’s Common Stock is then listed or traded

 

(mm)
“Prospectus” means the Base Prospectus, as supplemented from time to time by any Prospectus Supplement (including
the Initial Prospectus Supplement), including the documents and information incorporated by reference therein.

 

(nn)
“Prospectus Supplement” means any prospectus supplement to the Base Prospectus (including the Initial Prospectus
Supplement) filed with the SEC pursuant to Rule 424(b) under the Securities Act in connection with the transactions contemplated
by this Agreement, including the documents and information incorporated by reference therein.

 

(oo)
“Purchase Amount” means, with respect to the Initial Purchase, any Regular Purchase, any Accelerated Purchase,
or any Additional Accelerated Purchase made hereunder, as applicable, the portion of the Available Amount to be purchased by the
Investor pursuant to Section 2 hereof.

 

(pp)
“Purchase Date” means, with respect to a Regular Purchase made pursuant to Section 2(b) hereof, the
Business Day on which the Investor receives, after 4:00 p.m., Eastern time, but prior to 5:00 p.m., Eastern time, on such Business
Day, a valid Regular Purchase Notice for such Regular Purchase in accordance with this Agreement.

 

    	-6-

    	 

    

 

(qq)
“Purchase Price” means, with respect to a Regular Purchase made pursuant to Section 2(b) hereof, the
lower of: (i) the lowest Sale Price on the Purchase Date for such Regular Purchase and (ii) the arithmetic average of the three
(3) lowest Closing Sale Prices for the Common Stock during the ten (10) consecutive Business Days ending on the Business Day immediately
preceding such Purchase Date for such Regular Purchase (in each case, to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Agreement).

 

(rr)
“Registration Rights Agreement” means that certain Registration Rights Agreement, of even date herewith between
the Company and the Investor.

 

(ss)
“Registration Statement” has the meaning set forth in the Registration Rights Agreement.

 

(tt)
“Regular Purchase Notice” means, with respect to a Regular Purchase pursuant to Section 2(b) hereof,
an irrevocable written notice from the Company to the Investor directing the Investor to buy a specified number of Purchase Shares
(subject to the Purchase Share limitations contained in Section 2(b) hereof) at the applicable Purchase Price for such
Regular Purchase in accordance with this Agreement.

 

(uu)
“Sale Price” means any trade price for the shares of Common Stock on the Principal Market as reported by the
Principal Market.

 

(vv)
“SEC” means the U.S. Securities and Exchange Commission.

 

(ww)
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(xx)
“Shelf Registration Statement” has the meaning set forth in the Registration Rights Agreement.

 

(yy)
“Subsidiary” means any Person the Company wholly-owns or controls, or in which the Company, directly or indirectly,
owns a majority of the voting stock or similar voting interest, in each case that would be disclosable pursuant to Item 601(b)(21)
of Regulation S-K promulgated under the Securities Act.

 

(zz)
“Transaction Documents” means, collectively, this Agreement and the schedules and exhibits hereto, the Registration
Rights Agreement and the schedules and exhibits thereto, and each of the other agreements, documents, certificates and instruments
entered into or furnished by the parties hereto in connection with the transactions contemplated hereby and thereby.

 

(aaa)
“Transfer Agent” means Action Stock Transfer, or such other Person who is then serving as the transfer agent
for the Company in respect of the Common Stock.

 

(bbb)
“VWAP” means in respect of an Accelerated Purchase Date and an Additional Accelerated Purchase Date, as applicable,
the volume weighted average price of the Common Stock on the Principal Market, as reported on the Principal Market.

 

    	-7-

    	 

    

 

2.
PURCHASE OF COMMON STOCK.

 

Subject
to the terms and conditions set forth in this Agreement, the Company has the right to sell to the Investor, and the Investor has
the obligation to purchase from the Company, Purchase Shares as follows:

 

(a)
Initial Purchase of Common Stock. Subject to the satisfaction of all of the conditions set forth in Sections 7 and
8 hereof (the “Commencement” and the date of satisfaction of such conditions the “Commencement
Date”), at any time within 30 days of the Commencement Date, the Company shall have the right, but not the obligation,
to direct the Investor by the Company’s delivery to the Investor of the Initial Purchase Notice, and the Investor thereupon
shall have the obligation, to buy the Initial Purchase Amount of Initial Purchase Shares as specified by the Company therein at
the Initial Purchase Price (such purchase, the “Initial Purchase”); provided, however, that (i)
the Company may not deliver to the Investor more than one (1) Initial Purchase Notice pursuant to this Agreement, (ii) the Company
may not deliver the Initial Purchase Notice for an Initial Purchase Amount in excess of 325,000 Initial Purchase Shares (to be
appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction after
the date of this Agreement), and (iv) the Investor’s total committed obligation under the Initial Purchase shall not exceed
Two Million Seven Hundred Eighty Eight Thousand Five Hundred Dollars ($2,788,500). If the Company delivers the Initial Purchase
Notice for an Initial Purchase Amount in excess of the limitations contained in this Section 2(a), such Initial Purchase
Notice shall be void ab initio to the extent of the amount by which the number of Initial Purchase Shares set forth in
such Initial Purchase Notice exceeds the number of Initial Purchase Shares which the Company is permitted to include in such Initial
Purchase Notice in accordance herewith, and the Investor shall have no obligation to purchase such excess Initial Purchase Shares
in respect of such Initial Purchase Notice; provided that the Investor shall remain obligated to purchase the number of Initial
Purchase Shares which the Company is permitted to include in such Initial Purchase Notice.

 

(b)
Commencement of Regular Sales of Common Stock. Beginning on the Commencement Date and thereafter, the Company shall have
the right, but not the obligation, to direct the Investor, by its delivery to the Investor of a Regular Purchase Notice from time
to time, to purchase up to Eighty Thousand (80,000) Purchase Shares, subject to adjustment as set forth below in this Section
2(b) (such maximum number of Purchase Shares, as may be adjusted from time to time, the “Regular Purchase Share Limit”),
at the Purchase Price on the Purchase Date (each such purchase a “Regular Purchase”); provided, however,
that the Regular Purchase Share Limit shall be increased to: (i) One Hundred Thousand (100,000) Purchase Shares, if the Closing
Sale Price of the Common Stock on the applicable Purchase Date is not below $5.00, (ii) One Hundred Twenty Thousand (120,000)
Purchase Shares, if the Closing Sale Price of the Common Stock on the applicable Purchase Date is not below $7.50, and (iii) One
Hundred Forty Thousand (140,000) Purchase Shares, if the Closing Sale Price of the Common Stock on the applicable Purchase Date
is not below $10.00 (all of which share and dollar amounts shall be appropriately proportionately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction; provided that if, after giving effect to
the full proportionate adjustment to the Regular Purchase Share Limit therefor, the Fully Adjusted Regular Purchase Share Limit
then in effect would preclude the Company from delivering to the Investor a Regular Purchase Notice hereunder for a Purchase Amount
(calculated by multiplying (X) the number of Purchase Shares equal to the Fully Adjusted Regular Purchase Share Limit, by (Y)
the Purchase Price per Purchase Share covered by such Regular Purchase Notice on the applicable Purchase Date therefor) equal
to or greater than the Alternate Adjusted Regular Purchase Share Limit, the Regular Purchase Share Limit for such Regular Purchase
Notice shall not be fully adjusted to equal the applicable Fully Adjusted Regular Purchase Share Limit, but rather the Regular
Purchase Share Limit for such Regular Purchase Notice shall be adjusted to equal the applicable Alternate Adjusted Regular Purchase
Share Limit as of the applicable Purchase Date for such Regular Purchase Notice); and provided, further, however,
that the Investor’s committed obligation under any single Regular Purchase, other than any Regular Purchase with respect
to which an Alternate Adjusted Regular Purchase Share Limit shall apply, shall not exceed Two Million Dollars ($2,000,000) and
provided, further, however, that the parties may mutually agree to increase the Regular Purchase Share Limit
for any Regular Purchase. If the Company delivers any Regular Purchase Notice for a Purchase Amount in excess of the limitations
contained in the immediately preceding sentence, such Regular Purchase Notice shall be void ab initio to the extent of
the amount by which the number of Purchase Shares set forth in such Regular Purchase Notice exceeds the number of Purchase Shares
which the Company is permitted to include in such Purchase Notice in accordance herewith, and the Investor shall have no obligation
to purchase such excess Purchase Shares in respect of such Regular Purchase Notice; provided, however, that the
Investor shall remain obligated to purchase the number of Purchase Shares which the Company is permitted to include in such Regular
Purchase Notice. The Company may deliver a Regular Purchase Notice to the Investor as often as every Business Day, so long as
the Company has not failed to deliver Purchase Shares for the most recent prior Regular Purchase. Notwithstanding the foregoing,
the Company shall not deliver a Regular Purchase Notice to the Investor on any Purchase Date that the Closing Sale Price of the
Common Stock is less than the Floor Price. Notwithstanding the foregoing, the Company shall not deliver any Regular Purchase Notices
during the PEA Period.

 

    	-8-

    	 

    

 

(c)
Accelerated Purchases. Subject to the terms and conditions of this Agreement, from and after the Commencement Date, in
addition to purchases of Purchase Shares as described in Section 2(b) above, the Company shall also have the right, but
not the obligation, to direct the Investor, by its delivery to the Investor of an Accelerated Purchase Notice from time to time
in accordance with this Agreement, to purchase the applicable Accelerated Purchase Share Amount at the Accelerated Purchase Price
on the Accelerated Purchase Date therefor in accordance with this Agreement (each such purchase, an “Accelerated Purchase”);
provided however, that the parties may mutually agree to increase the Accelerated Purchase Share Amount for any Accelerated
Purchase. The Company may deliver an Accelerated Purchase Notice to the Investor only on a Purchase Date on which (i) the Company
also properly submitted a Regular Purchase Notice providing for a Regular Purchase of a number of Purchase Shares not less than
the Regular Purchase Share Limit then in effect on such Purchase Date in accordance with this Agreement (including, without limitation,
giving effect to any automatic increase to the Regular Purchase Share Limit as a result of the Closing Sale Price of the Common
Stock exceeding certain thresholds set forth in Section 2(b) above on such Purchase Date and any other adjustments to the
Regular Purchase Share Limit, in each case pursuant to Section 2(b) above) and (ii) the Closing Sale Price of the Common
Stock is not less than the Accelerated Purchase Floor Price. If the Company delivers any Accelerated Purchase Notice directing
the Investor to purchase an amount of Purchase Shares that exceeds the Accelerated Purchase Share Amount that the Company is then
permitted to include in such Accelerated Purchase Notice, such Accelerated Purchase Notice shall be void ab initio to the
extent of the amount by which the number of Purchase Shares set forth in such Accelerated Purchase Notice exceeds the Accelerated
Purchase Share Amount that the Company is then permitted to include in such Accelerated Purchase Notice (which shall be confirmed
in an Accelerated Purchase Confirmation), and the Investor shall have no obligation to purchase such excess Purchase Shares in
respect of such Accelerated Purchase Notice; provided, however, that the Investor shall remain obligated to purchase
the Accelerated Purchase Share Amount which the Company is permitted to include in such Accelerated Purchase Notice. Within one
(1) Business Day after completion of each Accelerated Purchase Date for an Accelerated Purchase, the Investor will provide to
the Company a written confirmation of such Accelerated Purchase setting forth the applicable Accelerated Purchase Share Amount
and Accelerated Purchase Price for such Accelerated Purchase (each, an “Accelerated Purchase Confirmation”).
Notwithstanding the foregoing, the Company shall not deliver any Accelerated Purchase Notices during the PEA Period.

 

    	-9-

    	 

    

 

(d)
Additional Accelerated Purchases. Subject to the terms and conditions of this Agreement, from and after the Commencement
Date, in addition to purchases of Purchase Shares as described in Section 2(b) and Section 2(c) above, the Company
shall also have the right, but not the obligation, to direct the Investor, by its timely delivery to the Investor of an Additional
Accelerated Purchase Notice on an Additional Accelerated Purchase Date in accordance with this Agreement, to purchase the applicable
Additional Accelerated Purchase Share Amount at the applicable Additional Accelerated Purchase Price therefor in accordance with
this Agreement (each such purchase, an “Additional Accelerated Purchase”); provided however, that the
parties may mutually agree to increase the Additional Accelerated Purchase Share Amount for any Additional Accelerated Purchase.
The Company may deliver multiple Additional Accelerated Purchase Notices to the Investor on an Additional Accelerated Purchase
Date; provided, however, that the Company may deliver an Additional Accelerated Purchase Notice to the Investor
only (i) on a Business Day that is also the Accelerated Purchase Date for an Accelerated Purchase with respect to which the Company
properly submitted to the Investor an Accelerated Purchase Notice in accordance with this Agreement on the applicable Purchase
Date for a Regular Purchase of a number of Purchase Shares not less than the Regular Purchase Share Limit then in effect in accordance
with this Agreement (including, without limitation, giving effect to any automatic increase to the Regular Purchase Share Limit
as a result of the Closing Sale Price of the Common Stock exceeding certain thresholds set forth in Section 2(b) above
on such Purchase Date and any other adjustments to the Regular Purchase Share Limit, in each case pursuant to Section 2(b)
above), (ii) if the Closing Sale Price of the Common Stock on the Business Day immediately preceding the Business Day on which
such Additional Accelerated Purchase Notice is delivered is not less than the Additional Accelerated Purchase Floor Price, and
(iii) if all Purchase Shares subject to all prior Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases,
including, without limitation, those that have been effected on the same Business Day as the applicable Additional Accelerated
Purchase Date with respect to which the applicable Additional Accelerated Purchase relates, in each case have theretofore been
received by the Investor as DWAC Shares in accordance with this Agreement. If the Company delivers any Additional Accelerated
Purchase Notice directing the Investor to purchase an amount of Purchase Shares that exceeds the Additional Accelerated Purchase
Share Amount that the Company is then permitted to include in such Additional Accelerated Purchase Notice, such Additional Accelerated
Purchase Notice shall be void ab initio to the extent of the amount by which the number of Purchase Shares set forth in
such Additional Accelerated Purchase Notice exceeds the Additional Accelerated Purchase Share Amount that the Company is then
permitted to include in such Additional Accelerated Purchase Notice (which shall be confirmed in an Additional Accelerated Purchase
Confirmation), and the Investor shall have no obligation to purchase such excess Purchase Shares in respect of such Additional
Accelerated Purchase Notice; provided, however, that the Investor shall remain obligated to purchase the Additional
Accelerated Purchase Share Amount which the Company is permitted to include in such Additional Accelerated Purchase Notice. Within
one (1) Business Day after completion of each Additional Accelerated Purchase Date, the Investor will provide to the Company a
written confirmation of each Additional Accelerated Purchase on such Additional Accelerated Purchase Date setting forth the applicable
Additional Accelerated Purchase Share Amount and Additional Accelerated Purchase Price for each such Additional Accelerated Purchase
on such Additional Accelerated Purchase Date (each, an “Additional Accelerated Purchase Confirmation”). Notwithstanding
the foregoing, the Company shall not deliver any Additional Accelerated Purchase Notices during the PEA Period.

 

    	-10-

    	 

    

 

(e)
Compliance with Principal Market Rules. Notwithstanding anything in this Agreement to the contrary, and in addition to
the limitations set forth in Section 2(f), the Company shall not issue more than 3,289,552 shares of Common Stock (the
“Exchange Cap”) under this Agreement, which equals 19.99% of the Company’s outstanding shares of Common
Stock as of the date hereof, unless stockholder approval is obtained to issue in excess of the Exchange Cap; provided,
however, that the foregoing limitation shall not apply if at any time the Exchange Cap is reached and at all times thereafter
the average price paid for all shares of Common Stock issued under this Agreement is equal to or greater than $7.523 (the
“Minimum Price”), a price equal to the lower of (i) the Nasdaq Official Closing Price immediately preceding
the execution of this Agreement or (ii) the arithmetic average of the five (5) Nasdaq Official Closing Prices for the Common Stock
immediately preceding the execution of this Agreement, as calculated in accordance with the rules of the Principal Market (in
such circumstance, for purposes of the Principal Market, the transaction contemplated hereby would not be “below market”
and the Exchange Cap would not apply). Notwithstanding the foregoing, the Company shall not be required or permitted to issue,
and the Investor shall not be required to purchase, any shares of Common Stock under this Agreement if such issuance would violate
the rules or regulations of the Principal Market. The Company may, in its sole discretion, determine whether to obtain stockholder
approval to issue more than 19.99% of its outstanding shares of Common Stock hereunder if such issuance would require stockholder
approval under the rules or regulations of the Principal Market. The Exchange Cap shall be reduced, on a share-for-share basis,
by the number of shares of Common Stock issued or issuable that may be aggregated with the transactions contemplated by this Agreement
under applicable rules of the Principal Market.

 

(f)
Payment for Purchase Shares. For the Initial Purchase and each Regular Purchase, the Investor shall pay to the Company
an amount equal to the Purchase Amount with respect to such Initial Purchase or Regular Purchase, as applicable, as full payment
for such Purchase Shares via wire transfer of immediately available funds on the same Business Day that the Investor receives
such Purchase Shares, if such Purchase Shares are received by the Investor before 1:00 p.m., Eastern time, or, if such Purchase
Shares are received by the Investor after 1:00 p.m., Eastern time, the next Business Day. For each Accelerated Purchase and each
Additional Accelerated Purchase, the Investor shall pay to the Company an amount equal to the Purchase Amount with respect to
such Accelerated Purchase and Additional Accelerated Purchase, respectively, as full payment for such Purchase Shares via wire
transfer of immediately available funds on the second Business Day following the date that the Investor receives such Purchase
Shares. If the Company or the Transfer Agent shall fail for any reason or for no reason to electronically transfer any Purchase
Shares as DWAC Shares with respect to any Regular Purchase, Accelerated Purchase or Additional Accelerated Purchase (as applicable)
within two (2) Business Days following the receipt by the Company of the Purchase Price, Accelerated Purchase Price or Additional
Accelerated Purchase Price, respectively, therefor in compliance with this Section 2(f), and if on or after such Business
Day the Investor purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a
sale by the Investor of such Purchase Shares that the Investor anticipated receiving from the Company in respect of such Initial
Purchase, Regular Purchase, Accelerated Purchase or Additional Accelerated Purchase (as applicable), then the Company shall, within
two (2) Business Days after the Investor’s request, either (i) pay cash to the Investor in an amount equal to the Investor’s
total purchase price (including customary brokerage commissions, if any) for the shares of Common Stock so purchased (the “Cover
Price”), at which point the Company’s obligation to deliver such Purchase Shares as DWAC Shares shall terminate,
or (ii) promptly honor its obligation to deliver to the Investor such Purchase Shares as DWAC Shares and pay cash to the Investor
in an amount equal to the excess (if any) of the Cover Price over the total Purchase Amount paid by the Investor pursuant to this
Agreement for all of the Purchase Shares to be purchased by the Investor in connection with such purchases. The Company shall
not issue any fraction of a share of Common Stock upon the Initial Purchase, any Regular Purchase, Accelerated Purchase or Additional
Accelerated Purchase. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall
round such fraction of a share of Common Stock up or down to the nearest whole share. All payments made under this Agreement shall
be made in lawful money of the United States of America or wire transfer of immediately available funds to such account as the
Company may from time to time designate by written notice in accordance with the provisions of this Agreement. Whenever any amount
expressed to be due by the terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due
on the next succeeding day that is a Business Day.

 

(g)
Beneficial Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement, the Company shall
not issue or sell, and the Investor shall not purchase or acquire, any shares of Common Stock under this Agreement which, when
aggregated with all other shares of Common Stock then beneficially owned by the Investor and its affiliates (as calculated pursuant
to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in the beneficial ownership by the Investor
and its affiliates of more than 9.99% of the then issued and outstanding shares of Common Stock (the “Beneficial Ownership
Limitation”). Upon the written or oral request of the Investor, the Company shall promptly (but not later than one Business
Day) confirm orally or in writing to the Investor the number of shares of Common Stock then outstanding. The Investor and the
Company shall each cooperate in good faith in the determinations required hereby and the application hereof. The Investor’s
written certification to the Company of the applicability of the Beneficial Ownership Limitation, and the resulting effect thereof
hereunder at any time, shall be conclusive with respect to the applicability thereof and such result absent manifest error.

 

    	-11-

    	 

    

 

3.
INVESTOR’S REPRESENTATIONS AND WARRANTIES.

 

The
Investor represents and warrants to the Company that as of the date hereof and as of the Commencement Date:

 

(a)
Organization, Authority. Investor is an entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization, with the requisite power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder.

 

(b)
Investment Purpose. The Investor is acquiring the Purchase Shares as principal for its own account for investment only
and not with a view to or for distributing or reselling such Purchase Shares or any part thereof in violation of the Securities
Act or any applicable state securities law, has no present intention of distributing any of such Purchase Shares in violation
of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with
any other Persons to distribute or regarding the distribution of such Purchase Shares in violation of the Securities Act or any
applicable state securities law (this representation and warranty not limiting the Investor’s right to sell the Purchase
Shares at any time pursuant to the Registration Statement described herein or otherwise in compliance with applicable federal
and state securities laws). The Investor is acquiring the Purchase Shares hereunder in the ordinary course of its business.

 

(c)
Accredited Investor Status. The Investor is an “accredited investor” as that term is defined in Rule 501(a)(3)
of Regulation D promulgated under the Securities Act.

 

(d)
Information. The Investor understands that its investment in the Purchase Shares involves a high degree of risk. The Investor
(i) is able to bear the economic risk of an investment in the Purchase Shares including a total loss thereof, (ii) has such knowledge
and experience in financial and business matters that it is capable of evaluating the merits and risks of the proposed investment
in the Purchase Shares and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company
concerning the financial condition and business of the Company and others matters related to an investment in the Purchase Shares.
Neither such inquiries nor any other due diligence investigations conducted by the Investor or its representatives shall modify,
amend or affect the Investor’s right to rely on the Company’s representations and warranties contained in Section
4 below. The Investor has sought such accounting, legal and tax advice as it has considered necessary to make an informed
investment decision with respect to its acquisition of the Purchase Shares. The Investor acknowledges and agrees that the Company
neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 4 hereof.

 

(e)
No Governmental Review. The Investor understands that no U.S. federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Purchase Shares or the fairness or suitability of an investment
in the Purchase Shares nor have such authorities passed upon or endorsed the merits of the offering of the Purchase Shares.

 

    	-12-

    	 

    

 

(f)
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor
and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as
to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(g)
Residency. The Investor is a resident of the State of Illinois.

 

(h)
No Short Selling. The Investor represents and warrants to the Company that at no time prior to the date of this Agreement
has any of the Investor, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly
or indirectly, any (i) “short sale” (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of
the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock.

 

4.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to the Investor that, as of the date hereof and as of the Commencement Date:

 

(a)
Organization and Qualification. The Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither
the Company nor any of its Subsidiaries is in violation or default of any of the provisions of its respective certificate or articles
of formation or incorporation, bylaws or other organizational or charter documents. Each of the Company and its Subsidiaries is
duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, would not reasonably be expected to result in a Material Adverse Effect
and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or
curtail such power and authority or qualification. The Company has no Subsidiaries except for Advanced Inhalation Therapies (AIT)
Ltd., Beyond Air Ireland Limited and Beyond Air Australia Pty. Ltd.

 

(b)
Authorization; Enforcement; Validity. (i) The Company has the requisite corporate power and authority to enter into and
perform its obligations under this Agreement and each of the other Transaction Documents, and to issue the Purchase Shares in
accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by the Company and
the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the reservation for
issuance and the issuance of the Purchase Shares issuable under this Agreement, have been duly authorized by the Company’s
Board of Directors and no further consent or authorization is required by the Company, its Board of Directors or any committee
thereof, or its stockholders (save to the extent provided in this agreement), (iii) this Agreement has been, and each other Transaction
Document shall be on the Commencement Date, duly executed and delivered by the Company and (iv) this Agreement constitutes, and
each other Transaction Document upon its execution on behalf of the Company, shall constitute, the valid and binding obligations
of the Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by
general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally, the enforcement of creditors’ rights and remedies. The Board of Directors of the Company has
approved the resolutions (the “Signing Resolutions”) substantially in the form as set forth as Exhibit B
attached hereto to authorize this Agreement and the transactions contemplated hereby. The Signing Resolutions are valid, in
full force and effect and have not been modified or supplemented in any respect. The Company has delivered to the Investor a true
and correct copy of a unanimous written consent adopting the Signing Resolutions executed by all of the members of the Board of
Directors of the Company. Except as set forth in this Agreement, no other approvals or consents of the Company’s Board of
Directors, any other authorized committee thereof, and/or stockholders is necessary under applicable laws and the Company’s
Certificate of Incorporation and/or Bylaws to authorize the execution and delivery of this Agreement or any of the transactions
contemplated hereby, including, but not limited to, the issuance of the Purchase Shares.

 

    	-13-

    	 

    

 

(c)
Capitalization. As of the date hereof, the authorized capital stock of the Company is set forth in Schedule 4(c) hereof.
Except as disclosed in the SEC Documents (as defined below) or Schedule 4(c), (i) no shares of the Company’s capital stock
are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company,
(ii) there are no outstanding debt securities, (iii) there are no outstanding options, warrants, scrip, rights to subscribe to,
calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company
or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries
or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, (iv) there are no agreements
or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities
under the Securities Act (except the Registration Rights Agreement and those registration rights for which a registration statement
has been filed and is effective), (v) there are no outstanding securities or instruments of the Company or any of its Subsidiaries
which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by
which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries,
(vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance
of the Purchase Shares as described in this Agreement and (vii) the Company does not have any stock appreciation rights or “phantom
stock” plans or agreements or any similar plan or agreement. The Company has furnished to the Investor true and correct
copies of the Certificate of Incorporation and the Bylaws, each as in effect on the date hereof, and copies of any documents containing
the material rights of holders of securities convertible or exercisable for Common Stock.

 

(d)
Issuance of Purchase Shares. Upon issuance and payment therefor in accordance with the terms and conditions of this Agreement,
the Purchase Shares (including, without limitation, the Initial Purchase Shares) shall be validly issued, fully paid and nonassessable
and free from all taxes, liens, charges, restrictions, rights of first refusal and preemptive rights with respect to the issue
thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. 5,000,000 shares of Common Stock
have been duly authorized and reserved for issuance upon purchase under this Agreement as Purchase Shares.

 

(e)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation for issuance
and issuance of the Purchase Shares) will not (i) result in a violation of the Certificate of Incorporation, any Certificate of
Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the Bylaws or (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which
the Company or any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and the rules and regulations of the Principal Market applicable
to the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is bound
or affected, except in the case of conflicts, defaults, terminations, amendments, accelerations, cancellations and violations
under clause (ii), which would not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor its
Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, any Certificate of Designation,
Preferences and Rights of any outstanding series of preferred stock of the Company or Bylaws or their organizational charter or
bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any term of or is in default under any
material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or
regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations or amendments
that would not reasonably be expected to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not
being conducted, and shall not be conducted, in violation of any law, ordinance, regulation of any governmental entity, except
for possible violations, the sanctions for which either individually or in the aggregate would not reasonably be expected to have
a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the Securities Act or applicable
state securities laws and the rules and regulations of the Principal Market, the Company is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory
agency in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents
in accordance with the terms hereof or thereof. Except as set forth elsewhere in this Agreement, (i) all consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence on or prior to the
date hereof or on or prior to the Commencement Date shall be obtained or effected on or prior to the date hereof and on or prior
to the Commencement Date, respectively, and (ii) all consents, authorizations, orders, filings and registrations which the Company
is required to obtain pursuant to the preceding sentence with respect to the Commencement shall be obtained or effected on or
prior to the Commencement Date.

 

    	-14-

    	 

    

 

(f)
SEC Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the twelve months preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
together with each Prospectus, being collectively referred to herein as the “SEC Documents”) on a timely basis
or has received a valid extension of such time of filing and has filed any such SEC Documents prior to the expiration of any such
extension. As of their respective dates, to the Company’s knowledge, the SEC Documents complied in all material respects
with the requirements of the Securities Act and the Exchange Act, as applicable. None of the SEC Documents, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements
of the Company included in the SEC Documents comply in all material respects with applicable accounting requirements and the rules
and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared
in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved
(“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects
the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments. Except as publicly available through the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (EDGAR)
or in connection with a confidential treatment request submitted to the SEC, the Company has received no notices or correspondence
from the SEC for the one year preceding the date hereof other than SEC comment letters relating to the Company’s filings
under the Exchange Act and the Securities Act. There are no “open” SEC comments. To the Company’s knowledge,
the SEC has not commenced any enforcement proceedings against the Company or any of its Subsidiaries.

 

    	-15-

    	 

    

 

(g)
Absence of Certain Changes. Except as disclosed in the SEC Documents, since December 31, 2019, there has been no material
adverse change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries.
The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy
Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as
they become due.

 

(h)
Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against or affecting the Company, the Common Stock or any of the Company’s or its Subsidiaries’ officers
or directors in their capacities as such, which could reasonably be expected to have a Material Adverse Effect.

 

(i)
Acknowledgment Regarding Investor’s Status. The Company acknowledges and agrees that the Investor is acting solely
in the capacity of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby
and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby and
any advice given by the Investor or any of its representatives or agents in connection with the Transaction Documents and the
transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Purchase Shares. The
Company further represents to the Investor that the Company’s decision to enter into the Transaction Documents has been
based solely on the independent evaluation by the Company and its representatives and advisors.

 

(j)
No Aggregated Offering. Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would cause this offering of the Purchase Shares to be integrated or aggregated with prior offerings by the Company in a
manner that would require stockholder approval pursuant to the rules of the Principal Market on which any of the securities of
the Company are listed or designated. The issuance and sale of the Purchase Shares hereunder does not contravene the rules and
regulations of the Principal Market.

 

(k)
Intellectual Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all material
trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions,
licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as
now conducted. None of the Company’s material trademarks, trade names, service marks, service mark registrations, service
names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other
intellectual property rights have expired or terminated, or, by the terms and conditions thereof, could expire or terminate within
two years from the date of this Agreement, except as would not reasonably be expected to have a Material Adverse Effect. The Company
and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of any material trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations,
trade secret or other similar rights of others, or of any such development of similar or identical trade secrets or technical
information by others, and there is no claim, action or proceeding being made or brought against, or to the Company’s knowledge,
being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention,
copyright, license, service names, service marks, service mark registrations, trade secret or other infringement, which could
reasonably be expected to have a Material Adverse Effect.

 

    	-16-

    	 

    

 

(l)
Environmental Laws. The Company and its Subsidiaries (i) are in compliance with any and all applicable foreign, federal,
state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses
or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in
compliance with all terms and conditions of any such permit, license or approval, except where, in each of the three foregoing
clauses, the failure to so comply could not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect.

 

(m)
Title. The Company and its Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and its Subsidiaries,
in each case free and clear of all liens, encumbrances and defects (“Liens”) and, except for Liens as do not
materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such
property by the Company and its Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which
is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and its Subsidiaries
are held by them under valid, subsisting and enforceable leases with which the Company and its Subsidiaries are in compliance
with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings
by the Company and its Subsidiaries.

 

(n)
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance
coverage sought or applied for and neither the Company nor any such Subsidiary has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not materially and adversely affect the condition, financial
or otherwise, or the earnings, business or operations of the Company and its Subsidiaries, taken as a whole.

 

(o)
Regulatory Permits. Except as disclosed in the SEC Documents, the Company and its Subsidiaries possess all material certificates,
authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their
respective businesses as currently conducted, except where the failure to possess such certificates, authorizations, or permits
would not reasonably be expected to have a Material Adverse Effect, and neither the Company nor any such Subsidiary has received
any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.

 

(p)
Tax Status. The Company and each of its Subsidiaries has made or filed all federal and state income and all other material
tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that
the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid
and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown
or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside
on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns,
reports or declarations apply. Except as set forth on Schedule 4(p), there are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.

 

(q)
Transactions With Affiliates. Except as disclosed in the SEC Documents, to the Company’s knowledge, none of the Company’s
stockholders, officers or directors or any family member or affiliate of any of the foregoing, has either directly or indirectly
an interest in, or is a party to, any transaction that would be required to be disclosed as a related party transaction pursuant
to Item 404 of Regulation S-K promulgated under the Securities Act.

 

    	-17-

    	 

    

 

(r)
Application of Takeover Protections. The Company and its board of directors have taken or will take prior to the Commencement
Date all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation
or the laws of the state of its incorporation which is or could become applicable to the Investor as a result of the transactions
contemplated by this Agreement, including, without limitation, the Company’s issuance of the Purchase Shares and the Investor’s
ownership of the Purchase Shares.

 

(s)
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents that will be timely publicly disclosed by the Company, the Company confirms that neither it nor any other Person acting
on its behalf has provided the Investor or its agents or counsel with any information that it believes constitutes or might constitute
material, non-public information that is not otherwise disclosed in the SEC Documents. The Company understands and confirms that
the Investor will rely on the foregoing representation in effecting purchases and sales of securities of the Company. All of the
disclosure furnished by or on behalf of the Company to the Investor regarding the Company, its business and the transactions contemplated
hereby, taken as a whole, is true and correct in all material respects and does not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding
the date of this Agreement taken as a whole did not as of their issue date contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that the Investor
neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 3 hereof.

 

(t)
Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other Person acting on
behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other
unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government
officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose
fully any contribution made by the Company (or made by any Person acting on its behalf of which the Company is aware) which is
in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(u)
DTC Eligibility. The Company, through the Transfer Agent, currently participates in the DTC Fast Automated Securities Transfer
(FAST) Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities Transfer
(FAST) Program.

 

(v)
Sarbanes-Oxley. To the knowledge of the Company, the Company is in material compliance with all provisions of the Sarbanes-Oxley
Act of 2002, as amended, which are applicable to it as of the date hereof.

 

(w)
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated
by the Transaction Documents. The Investor shall have no obligation with respect to any fees or with respect to any claims made
by or on behalf of other Persons for fees of a type contemplated in this Section 4(w) that may be due in connection with
the transactions contemplated by the Transaction Documents.

 

    	-18-

    	 

    

 

(x)
Investment Company. The Company is not required to be registered as, and immediately after receipt of payment for the Purchase
Shares will not be required to be registered as, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended.

 

(y)
Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act, and
the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock pursuant to the Exchange Act nor has the Company received any notification that the SEC is currently contemplating
terminating such registration. The Purchase Shares have been approved for listing on the Principal Market. The Company has taken
no action designed to, or likely to have the effect of, delisting the Common Stock from the Principal Market, nor has the Company
received any notice from any Person to the effect that the Company is not in compliance with the listing or maintenance requirements
of the Principal Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be,
in compliance with all such listing and maintenance requirements.

 

(z)
Accountants. The Company’s accountants are set forth in the SEC Documents and, to the knowledge of the Company, such
accountants are an independent registered public accounting firm as required by the Securities Act.

 

(aa)
No Market Manipulation. The Company has not, and to its knowledge no Person acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the sale or resale of any of the Purchase Shares, (ii) sold, bid for, purchased, or, paid any compensation
for soliciting purchases of, any of the Purchase Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting
another to purchase any other securities of the Company.

 

(bb)
Shell Company Status. The Company is not, and has not been at any time since at least January 13, 2017, an issuer identified
in Rule 144(i)(1) under the Securities Act and has filed with the SEC current “Form 10 information” (as defined in
Rule 144(i)(3) under the Securities Act) at least 12 calendar months prior to the date of this Agreement reflecting its status
as an entity that is no longer an issuer identified in Rule 144(i)(1) under the Securities Act.

 

(cc)
No Disqualification Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive
officer, other officer of the Company participating in the offering contemplated hereby, any beneficial owner of 20% or more of
the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term
is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer
Covered Person”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to
(viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by
Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has exercised reasonable care to determine whether any Issuer Covered
Person is subject to a Disqualification Event

 

    	-19-

    	 

    

 

(dd)
Registration Statement. The Company has prepared and filed the Shelf Registration Statement with the SEC in accordance
with the Securities Act. The Shelf Registration Statement was declared effective by order of the SEC on July 2, 2019. The Shelf
Registration Statement is effective pursuant to the Securities Act and available for the issuance of the Purchase Shares thereunder.
No stop order suspending the effectiveness of the Shelf Registration Statement has been issued by the SEC, and no proceeding for
that purpose or pursuant to Section 8A of the Securities Act against the Company or related to the offering of the Purchase Shares
has been initiated or, to the knowledge of the Company, threatened by the SEC. The “Plan of Distribution” section
of the Prospectus permits the issuance of the Purchase Shares under the terms of this Agreement. At the time the Shelf Registration
Statement and any amendments thereto became effective, at the date of this Agreement and at each deemed effective date thereof
pursuant to Rule 430B(f)(2) of the Securities Act, the Shelf Registration Statement and any amendments thereto complied and will
comply in all material respects with the requirements of the Securities Act and did not and will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein
not misleading; and the Base Prospectus and any Prospectus Supplement thereto, at the time such Base Prospectus or such Prospectus
Supplement thereto was filed and on the Commencement Date, complied and will comply in all material respects with the requirements
of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; provided
that this representation and warranty does not apply to statements in or omissions from any Prospectus Supplement made in reliance
upon and in conformity with information relating to the Investor furnished to the Company in writing by or on behalf of the Investor
expressly for use therein. The Company meets all of the requirements for the use of a registration statement on Form S-3 pursuant
to the Securities Act for the offering and sale of the Purchase Shares contemplated by this Agreement in reliance on General Instruction
I.B.1., and the SEC has not notified the Company of any objection to the use of the form of the Registration Statement pursuant
to Rule 401(g)(1) of the Securities Act. The Company hereby confirms that the issuance of the Purchase Shares to the Investor
pursuant to this Agreement would not result in non-compliance with the Securities Act or any of the General Instructions to Form
S-3. The Registration Statement, as of its effective date, meets the requirements set forth in Rule 415(a)(1)(x) pursuant to the
Securities Act. At the earliest time after the filing of the Registration Statement that the Company or another offering participant
made a bona fide offer (within the meaning of Rule 164(h)(2) of the Securities Act) relating to any of the Purchase Shares, the
Company was, and as of the date of this Agreement the Company is, not an Ineligible Issuer (as defined in Rule 405 of the Securities
Act). The Company has not distributed any offering material in connection with the offering and sale of any of the Purchase Shares,
other than the Shelf Registration Statement or any amendment thereto, the Prospectus or any Prospectus Supplement required pursuant
to applicable law or the Transaction Documents. The Company has not made and shall not make an offer relating to the Purchase
Shares that would constitute a “free writing prospectus” as defined in Rule 405 under the Securities Act.

 

5.
COVENANTS.

 

(a)
Filing of Current Report and Initial Prospectus Supplement. The Company agrees that it shall, within the time required
under the Exchange Act, file with the SEC a Current Report on Form 8-K relating to the transactions contemplated by, and describing
the material terms and conditions of, the Transaction Documents (the “Current Report”). The Company further
agrees that it shall, within the time required under Rule 424(b) under the Securities Act, file with the SEC the Initial Prospectus
Supplement pursuant to Rule 424(b) under the Securities Act specifically relating to the transactions contemplated by, and describing
the material terms and conditions of, the Transaction Documents, containing information previously omitted at the time of effectiveness
of the Shelf Registration Statement in reliance on Rule 430B under the Securities Act, and disclosing all information relating
to the transactions contemplated hereby required to be disclosed in the Shelf Registration Statement and the Prospectus as of
the date of the Initial Prospectus Supplement, including, without limitation, information required to be disclosed in the section
captioned “Plan of Distribution” in the Prospectus. The Investor acknowledges that it will be identified in the Initial
Prospectus Supplement as an underwriter within the meaning of Section 2(a)(11) of the Securities Act. The Company shall permit
the Investor to review and comment upon the Current Report and the Initial Prospectus Supplement at least two (2) Business Days
prior to their filing with the SEC, the Company shall give due consideration to all such comments. The Investor shall use its
reasonable best efforts to provide any comments upon the Current Report and the Initial Prospectus Supplement within one (1) Business
Day from the date the Investor receives a substantially complete draft thereof from the Company. The Investor shall furnish to
the Company such information regarding itself, the Purchase Shares held by it and the intended method of distribution thereof,
including any arrangement between the Investor and any other Person relating to the sale or distribution of the Purchase Shares,
as shall be reasonably requested by the Company in connection with the preparation and filing of the Current Report and the Initial
Prospectus Supplement, and shall otherwise cooperate with the Company as reasonably requested by the Company in connection with
the preparation and filing of the Current Report and the Initial Prospectus Supplement with the SEC.

 

    	-20-

    	 

    

 

(b)
Blue Sky. The Company shall take all such action, if any, as is reasonably necessary in order to obtain an exemption for
or to register or qualify (i) the issuance and the sale of the Purchase Shares to the Investor under this Agreement and (ii) any
subsequent resale of all Purchase Shares by the Investor, in each case, under applicable securities or “Blue Sky”
laws of the states of the United States in such states as is reasonably requested by the Investor from time to time, and shall
provide evidence of any such action so taken to the Investor.

 

(c)
Listing/DTC. The Company shall use commercially reasonable efforts to maintain, so long as any shares of Common Stock shall
be so listed, such listing of all Purchase Shares from time to time issuable hereunder. The Company shall use commercially reasonable
efforts to maintain the listing of the Common Stock on the Principal Market and shall comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules and regulations of the Principal Market. Neither the Company
nor any of its Subsidiaries shall take any action that would reasonably be expected to result in the delisting or suspension of
the Common Stock on the Principal Market. The Company shall promptly, and in no event later than the following Business Day, provide
to the Investor copies of any notices it receives from any Person regarding the continued eligibility of the Common Stock for
listing on the Principal Market; provided, however, that the Company shall not be required to provide the Investor copies of any
such notice that the Company reasonably believes constitutes material non-public information and the Company would not be required
to publicly disclose such notice in any report or statement filed with the SEC and under the Exchange Act or the Securities Act.
The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 5(c). The
Company shall take all action necessary to ensure that its Common Stock can be transferred electronically as DWAC Shares.

 

(d)
Prohibition of Short Sales and Hedging Transactions. The Investor agrees that beginning on the date of this Agreement and
ending on the date of termination of this Agreement as provided in Section 11, the Investor and its agents, representatives and
affiliates shall not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as
such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which
establishes a net short position with respect to the Common Stock.

 

(e)
Payment of Commitment Fee. In consideration for the Investor’s execution and delivery of this Agreement, the Company
shall cause to be paid to the Investor a commitment fee of $1,000,000 (the “Commitment Fee”) within three business
days of the date hereof and shall deliver the Commitment Fee in full to the Investor by wire transfer of immediately available
funds to an account designated by the Investor by written notice to the Company on or prior to the date of this Agreement. For
the avoidance of doubt, all of the Commitment Fee shall be fully earned as of the date of this Agreement, whether or not the Commencement
shall occur or any Purchase Shares are purchased by the Investor under this Agreement and irrespective of any subsequent termination
of this Agreement.

 

    	-21-

    	 

    

 

(f)
Due Diligence; Non-Public Information. The Investor shall have the right, from time to time as the Investor may reasonably
deem appropriate, and upon reasonable advance notice to the Company, to perform reasonable due diligence on the Company during
normal business hours. The Company and its officers and employees shall provide information and reasonably cooperate with the
Investor in connection with any reasonable request by the Investor related to the Investor’s due diligence of the Company.
Each party hereto agrees not to disclose any Confidential Information of the other party to any third party and shall not use
the Confidential Information for any purpose other than in connection with, or in furtherance of, the transactions contemplated
hereby. Each party hereto acknowledges that the Confidential Information shall remain the property of the disclosing party and
agrees that it shall take all reasonable measures to protect the secrecy of any Confidential Information disclosed by the other
party. The receiving party may disclose Confidential Information to the extent such information is required to be disclosed by
law, regulation or order of a court of competent jurisdiction or regulatory authority, provided that the receiving party shall
promptly notify the disclosing party when such requirement to disclose arises, and shall cooperate with the disclosing party so
as to enable the disclosing party to: (i) seek an appropriate protective order; and (ii) make any applicable claim of confidentiality
in respect of such Confidential Information; and provided, further, that the receiving party shall disclose Confidential Information
only to the extent required by the protective order or other similar order, if such an order is obtained, and, if no such order
is obtained, the receiving party shall disclose only the minimum amount of such Confidential Information required to be disclosed
in order to comply with the applicable law, regulation or order. In addition, any such Confidential Information disclosed pursuant
to this section shall continue to be deemed Confidential Information. Notwithstanding anything in this Agreement to the contrary,
the Company and the Investor agree that neither the Company nor any other Person acting on its behalf shall provide the Investor
or its agents or counsel with any information that constitutes or may reasonably be considered to constitute material, non-public
information, unless a simultaneous public announcement thereof is made by the Company in the manner contemplated by Regulation
FD. In the event of a breach of the foregoing covenant by the Company or any Person acting on its behalf (as determined in the
reasonable good faith judgment of the Investor), in addition to any other remedy provided herein or in the other Transaction Documents,
if the Investor is holding any Purchase Shares at the time of the disclosure of such material non-public information, the Investor
shall have the right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such material,
non-public information without the prior approval by the Company; provided the Investor shall have first provided notice to the
Company that it believes it has received information that constitutes material, non-public information; and the Company shall
have at least 24 hours to either publicly disclose such material, non-public information or to demonstrate to the Investor that
such information does not constitute material, non-public information, prior to any such disclosure by the Investor; and the Company
shall have failed to either publicly disclose such material, non-public information or to demonstrate to the Investor that such
information does not constitute material, non-public information within such time period. The Investor shall not have any liability
to the Company, any of its Subsidiaries, or any of their respective directors, officers, employees, stockholders or agents, for
any such disclosure. The Company understands and confirms that the Investor shall be relying on the foregoing covenants in effecting
transactions in securities of the Company.

 

(g)
Purchase Records. The Investor and the Company shall each maintain records showing the remaining Available Amount at any
given time and the dates and Purchase Amounts for each Regular Purchase, Accelerated Purchase and Additional Accelerated Purchase
or shall use such other method, reasonably satisfactory to the Investor and the Company.

 

(h)
Taxes. The Company shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the issuance
and delivery of any shares of Common Stock to the Investor made under this Agreement.

 

(i)
Use of Proceeds. The Company will use the net proceeds from the offering for any corporate purpose at the sole discretion
of the Company.

 

    	-22-

    	 

    

 

(j)
Other Transactions. The Company shall not enter into, announce or recommend to its stockholders any agreement, plan, arrangement
or transaction in or of which the terms thereof would restrict, materially delay, conflict with or impair the ability or right
of the Company to perform its obligations under the Transaction Documents, including, without limitation, the obligation of the
Company to deliver the Purchase Shares to the Investor in accordance with the terms of the Transaction Documents.

 

(k)
Aggregation. From and after the date of this Agreement, neither the Company, nor or any of its affiliates will, and the
Company shall use its reasonable best efforts to ensure that no Person acting on their behalf will, directly or indirectly, make
any offers or sales of any security or solicit any offers to buy any security, under circumstances that would cause this offering
of the Purchase Shares by the Company to the Investor to be aggregated with other offerings by the Company in a manner that would
require stockholder approval pursuant to the rules of the Principal Market on which any of the securities of the Company are listed
or designated, unless stockholder approval is obtained before the closing of such subsequent transaction in accordance with the
rules of such Principal Market.

 

(l)
Limitation on Financings. Other than with respect to an Exempt Issuance, the Company shall be prohibited from entering
into any “equity line” or similar transaction whereby an investor is irrevocably bound to purchase securities over
a period of time from the Company at a price based on the market price of the Common Stock at the time of such purchase until
the later of (i) Thirty-Six (36) months from the date hereof or (ii) the Maturity Date; provided, however, that
this Section 5(l) shall not be deemed to prohibit the issuance of Common Stock pursuant to an “at-the-market offering”
by the Company exclusively through a registered broker-dealer acting as agent of the Company pursuant to a written agreement between
the Company and such registered broker-dealer. The Investor shall be entitled to seek injunctive relief against the Company to
preclude any such issuance, which remedy shall be in addition to any right to collect damages, without the necessity of showing
economic loss and without any bond or other security being required. “Exempt Issuance” means the issuance of
(a) Common Stock or Common Stock Equivalents to employees, officers, directors or vendors of the Company pursuant to any stock
or option plan duly adopted for such purpose, by the Board of Directors or a majority of the members of a committee of directors
established for such purpose, (b) securities upon the exercise or exchange of or conversion of any Purchase Shares issued hereunder
and/or other securities exercisable or exchangeable for or convertible into Common Stock issued and outstanding on the date of
this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of
such securities or to decrease the exercise price, exchange price or conversion price of such securities, or (c) securities issued
pursuant to acquisitions, divestitures, licenses, partnerships, collaborations or strategic transactions approved by the Board
of Directors or a majority of the members of a committee of directors established for such purpose, which acquisitions, divestitures,
licenses, partnerships, collaborations or strategic transactions can have a Variable Rate Transaction component, provided that
any such issuance shall only be to a Person (or to the equity holders of a Person) which is, itself or through its subsidiaries,
an operating company or an asset in a business synergistic with the business of the Company and shall provide to the Company additional
benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities
primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

 

6.
                                         TRANSFER AGENT INSTRUCTIONS.

 

On
the date of the Initial Prospectus Supplement, the Company shall issue to the Transfer Agent, and any subsequent transfer agent,
irrevocable instructions in the form substantially similar to those used by the Investor in substantially similar transactions
(the “Irrevocable Transfer Agent Instructions”) to issue the Purchase Shares in accordance with the terms of
this Agreement and the Registration Rights Agreement. All Purchase Shares to be issued from and after Commencement to or for the
benefit of the Investor pursuant to this Agreement shall be issued only as DWAC Shares. The Company represents and warrants to
the Investor that, while this Agreement is effective, no instruction other than the Irrevocable Transfer Agent Instructions and
any Notice of Effectiveness of Registration Statement (as defined in the Registration Rights Agreement) will be given by the Company
to the Transfer Agent with respect to the Purchase Shares from and after Commencement, and the Purchase Shares covered by the
Registration Statement shall otherwise be freely transferable on the books and records of the Company.

 

    	-23-

    	 

    

 

7.
CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK.

 

The
right of the Company hereunder to commence sales of Purchase Shares is subject to the satisfaction of each of the following conditions:

 

(a)
The Investor shall have executed each of the Transaction Documents and delivered the same to the Company;

 

(b)
The representations and warranties of the Investor shall be true and correct in all material respects as of the date hereof and
as of the Commencement Date as though made at that time; and

 

(c)
No stop order with respect to the Registration Statement shall be pending or threatened by the SEC.

 

8.
CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE SHARES OF COMMON STOCK.

 

The
obligation of the Investor to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following
conditions on or prior to the Commencement Date and, once such conditions have been initially satisfied, there shall not be any
ongoing obligation to satisfy such conditions after the Commencement has occurred:

 

(a)
The Company shall have executed each of the Transaction Documents and delivered the same to the Investor;

 

(b)
(b) (i) The Company shall have paid the Commitment Fee in full to the Investor in accordance with Section 5(e);

 

(c)
The Common Stock shall be listed on the Principal Market, trading in the Common Stock shall not have been within the last 365
days suspended by the SEC or the Principal Market and such suspension has not subsequently been cured, and all Purchase Shares
to be issued by the Company to the Investor pursuant to this Agreement shall have been approved for listing or quotation on the
Principal Market, in accordance with the applicable rules and regulations of such Principal Market, subject only to official notice
of issuance;

 

(d)
The Investor shall have received the opinions and negative assurances letter of the Company’s legal counsel dated as of
the Commencement Date substantially in the forms agreed prior to the date of this Agreement by the Company’s legal counsel
and the Investor’s legal counsel;

 

    	-24-

    	 

    

 

(e)
The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that
any of such representations and warranties is already qualified as to materiality in Section 4 above, in which case, such
representations and warranties shall be true and correct without further qualification) as of the date hereof and as of the Commencement
Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true
and correct as of such date) and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement
Date. The Investor shall have received a certificate, executed by the CEO, President or CFO of the Company, dated as of the Commencement
Date, to the foregoing effect in the form attached hereto as Exhibit A;

 

(f)
The Board of Directors of the Company shall have adopted resolutions in substantially the form attached hereto as Exhibit
B which shall be in full force and effect without any amendment or supplement thereto as of the Commencement Date;

 

(g)
As of the Commencement Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose
of effecting purchases of Purchase Shares hereunder, 5,000,000 shares of Common Stock;

 

(h)
(h) The Irrevocable Transfer Agent Instructions shall have been delivered to and acknowledged in writing by the Company and the
Transfer Agent (or any successor transfer agent);

 

(i)
The Company shall have delivered to the Investor a certificate evidencing the incorporation and good standing of the Company in
the State of Delaware issued by the Secretary of State of the State of Delaware as of a date within ten (10) Business Days of
the Commencement Date;

 

(j)
The Company shall have delivered to the Investor a certified copy of the Certificate of Incorporation as certified by the Secretary
of State of the State of Delaware within ten (10) Business Days of the Commencement Date;

 

(k)
The Company shall have delivered to the Investor a secretary’s certificate executed by the Secretary of the Company, dated
as of the Commencement Date, in the form attached hereto as Exhibit C;

 

(l)
The Shelf Registration Statement shall continue to be effective and no stop order with respect to the Shelf Registration Statement
shall be pending or threatened by the SEC. The Company shall have a maximum dollar amount certain of Common Stock registered under
the Shelf Registration Statement which is sufficient to issue to the Investor not less than the full Available Amount worth of
Purchase Shares. The Current Report and the Initial Prospectus Supplement each shall have been filed with the SEC, as required
pursuant to Section 5(a), and copies of the Prospectus shall have been delivered to the Investor in accordance with the
terms of the Registration Rights Agreement. The Prospectus shall be current and available for issuances and sales of all of the
Securities by the Company to the Investor. Any other Prospectus Supplements required to have been filed by the Company with the
SEC under the Securities Act at or prior to the Commencement Date shall have been filed with the SEC within the applicable time
periods prescribed for such filings under the Securities Act. All reports, schedules, registrations, forms, statements, information
and other documents required to have been filed by the Company with the SEC at or prior to the Commencement Date pursuant to the
reporting requirements of the Exchange Act shall have been filed with the SEC within the applicable time periods prescribed for
such filings under the Exchange Act;

 

(m)
No Event of Default has occurred, and no event which, after notice and/or lapse of time, would reasonably be expected to become
an Event of Default has occurred;

 

    	-25-

    	 

    

 

(n)
All federal, state and local governmental laws, rules and regulations applicable to the transactions contemplated by the Transaction
Documents and necessary for the execution, delivery and performance of the Transaction Documents and the consummation of the transactions
contemplated thereby in accordance with the terms thereof shall have been complied with, and all consents, authorizations and
orders of, and all filings and registrations with, all federal, state and local courts or governmental agencies and all federal,
state and local regulatory or self-regulatory agencies necessary for the execution, delivery and performance of the Transaction
Documents and the consummation of the transactions contemplated thereby in accordance with the terms thereof shall have been obtained
or made, including, without limitation, in each case those required under the Securities Act, the Exchange Act, applicable state
securities or “Blue Sky” laws or applicable rules and regulations of the Principal Market, or otherwise required by
the SEC, the Principal Market or any state securities regulators;

 

(o)
No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated, threatened or
endorsed by any federal, state or local court or governmental authority of competent jurisdiction which prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by the Transaction Documents; and

 

(p)
No action, suit or proceeding before any federal, state, local or foreign arbitrator or any court or governmental authority of
competent jurisdiction shall have been commenced or threatened, and no inquiry or investigation by any federal, state, local or
foreign governmental authority of competent jurisdiction shall have been commenced or threatened, against the Company, or any
of the officers, directors or affiliates of the Company, seeking to restrain, prevent or change the transactions contemplated
by the Transaction Documents, or seeking material damages in connection with such transactions.

 

9.
INDEMNIFICATION.

 

In
consideration of the Investor’s execution and delivery of the Transaction Documents and acquiring the Purchase Shares hereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless the Investor and all of its affiliates, stockholders, officers, directors and employees and any of
the foregoing Person’s agents or other representatives (including, without limitation, those retained in connection with
the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and
all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought),
and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred
by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
or warranty made by the Company in the Transaction Documents or any other certificate, instrument or document contemplated hereby
or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in the Transaction Documents or any
other certificate, instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or
made against such Indemnitee and arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction
Documents or any other certificate, instrument or document contemplated hereby or thereby, other than, in the case of clause (c),
with respect to Indemnified Liabilities which directly and primarily result from the fraud, gross negligence or willful misconduct
of an Indemnitee. The indemnity in this Section 9 shall not apply to amounts paid in settlement of any claim if such settlement
is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or
delayed. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make
the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable
law. Payment under this indemnification shall be made within thirty (30) days from the date Investor makes written request for
it. A certificate containing reasonable detail as to the amount of such indemnification submitted to the Company by Investor shall
be conclusive evidence, absent manifest error, of the amount due from the Company to Investor, provided that the Indemnitee shall
undertake to repay any amounts paid to it hereunder if it is ultimately determined, by a final and non-appealable order of a court
of competent jurisdiction, that the Indemnitee is not entitled to be indemnified against such Indemnified Liabilities by the Company
pursuant to this Agreement. If any action shall be brought against any Indemnitee in respect of which indemnity may be sought
pursuant to this Agreement, such Indemnitee shall promptly notify the Company in writing, and the Company shall have the right
to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Indemnitee. Any Indemnitee shall have
the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnitee, except to the extent that (i) the employment thereof has been specifically
authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and
to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on
any material issue between the position of the Company and the position of such Indemnitee, in which case the Company shall be
responsible for the reasonable fees and expenses of no more than one such separate counsel.

 

    	-26-

    	 

    

 

10.
EVENTS OF DEFAULT.

 

An
“Event of Default” shall be deemed to have occurred at any time as any of the following events occurs:

 

(a)
the effectiveness of a Registration Statement registering the resale of the Purchase Shares lapses for any reason (including,
without limitation, the issuance of a stop order or similar order) or such registration statement (or the prospectus forming a
part thereof) is unavailable to the Investor for resale of any or all of the Purchase Shares to be issued to the Investor under
the Transaction Documents that are required to be included therein, and such lapse or unavailability continues for a period of
ten (10) consecutive Business Days or for more than an aggregate of thirty (30) Business Days in any 365-day period, but excluding
a lapse or unavailability where (i) the Company terminates a Registration Statement after the Investor has confirmed in writing
that all of the Purchase Shares covered thereby have been resold or (ii) the Company supersedes one Registration Statement with
another Registration Statement, including (without limitation) by terminating a prior Registration Statement when it is effectively
replaced with a new Registration Statement covering Purchase Shares (provided in the case of this clause (ii) that all of the
Purchase Shares covered by the superseded (or terminated) Registration Statement that have not theretofore been resold are included
in the superseding (or new) Registration Statement);

 

(b)
the suspension of the Common Stock from trading on the Principal Market for a period of one (1) Business Day, provided that the
Company may not direct the Investor to purchase any shares of Common Stock during any such suspension;

 

(c)
the delisting of the Common Stock from The NASDAQ Capital Market provided, however, that the Common Stock is not immediately thereafter
trading on The NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market, the New York Stock Exchange,
the NYSE American, the NYSE Arca, the OTC Bulletin Board, or the OTCQB or the OTCQX operated by the OTC Markets Group, Inc. (or
any nationally recognized successor to any of the foregoing);

 

(d)
the failure for any reason by the Transfer Agent to issue Purchase Shares to the Investor within three (3) Business Days after
the applicable Purchase Date, Accelerated Purchase Date or Additional Accelerated Purchase Date (as applicable) on which the Investor
is entitled to receive such Purchase Shares;

 

(e)
the Company breaches any representation, warranty, covenant or other term or condition under any Transaction Document if such
breach could have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably curable, only
if such breach continues for a period of at least five (5) Business Days;

 

(f)
if any Person commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law;

 

    	-27-

    	 

    

 

(g)
if the Company, pursuant to or within the meaning of any Bankruptcy Law, (i) commences a voluntary case, (ii) consents to the
entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for
all or substantially all of its property, or (iv) makes a general assignment for the benefit of its creditors or is generally
unable to pay its debts as the same become due;

 

(h)
(h) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the Company
in an involuntary case, (ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders
the liquidation of the Company; or

 

(i)
if at any time the Company is not eligible to transfer its Common Stock electronically as DWAC Shares.

 

In
addition to any other rights and remedies under applicable law and this Agreement, so long as an Event of Default has occurred
and is continuing, or if any event that, after notice and/or lapse of time, would reasonably be expected to become an Event of
Default, has occurred and is continuing, the Company shall not deliver to the Investor any Regular Purchase Notice, Accelerated
Purchase Notice or Additional Purchase Notice.

 

11.
TERMINATION

 

This
Agreement may be terminated only as follows:

 

(a)
If pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding
against the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company
makes a general assignment for the benefit of its creditors (any of which would be an Event of Default as described in Sections
10(f), 10(g) and 10(h) hereof), this Agreement shall automatically terminate without any liability or payment
to the Company (except as set forth below) without further action or notice by any Person.

 

(b)
At any time after the Commencement Date, the Company shall have the option to terminate this Agreement for any reason or for no
reason by delivering notice (a “Company Termination Notice”) to the Investor electing to terminate this Agreement
without any liability whatsoever of any party to any other party under this Agreement (except as set forth below). The Company
Termination Notice shall not be effective until one (1) Business Day after it has been received by the Investor.

 

(c)
This Agreement shall automatically terminate on the date that the Company sells and the Investor purchases the full Available
Amount as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party
to any other party under this Agreement (except as set forth below).

 

(d)
If, for any reason or for no reason, the full Available Amount has not been purchased in accordance with Section 2 of this
Agreement by the Maturity Date, this Agreement shall automatically terminate on the Maturity Date, without any action or notice
on the part of any party and without any liability whatsoever of any party to any other party under this Agreement (except as
set forth below).

 

    	-28-

    	 

    

 

Except
as set forth in Sections 11(a) (in respect of an Event of Default under Sections 10(f), 10(g) and 10(h)),
11(d) and 11(e), any termination of this Agreement pursuant to this Section 11 shall be effected by written
notice from the Company to the Investor, or the Investor to the Company, as the case may be, setting forth the basis for the termination
hereof. The representations and warranties and covenants of the Company and the Investor contained in Sections 3, 4,
5, and 6 hereof, the indemnification provisions set forth in Section 9 hereof and the agreements and covenants
set forth in Sections 10, 11 and 12 shall survive the execution and delivery of this Agreement and any termination
of this Agreement. No termination of this Agreement shall (i) affect the Company’s or the Investor’s rights or obligations
under (A) this Agreement with respect to any pending Initial Purchase, Regular Purchases, Accelerated Purchases, or Additional
Purchases, and the Company and the Investor shall complete their respective obligations with respect to any pending Initial Purchase,
Regular Purchases, Accelerated Purchases and Additional Purchases under this Agreement and (B) the Registration Rights Agreement,
which shall survive any such termination, or (ii) be deemed to release the Company or the Investor from any liability for intentional
misrepresentation or willful breach of any of the Transaction Documents.

 

12.
MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial. The corporate laws of the State of Delaware shall govern all issues concerning
the relative rights of the Company and its stockholders. All other questions concerning the construction, validity, enforcement
and interpretation of this Agreement and the other Transaction Documents shall be governed by the internal laws of the State of
Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or
any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Illinois,
County of Cook, for the adjudication of any dispute hereunder or under the other Transaction Documents or in connection herewith
or therewith, or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT
IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(b)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party; provided that a facsimile signature or signature delivered by e-mail in a “.pdf” format data file shall be
considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were
an original signature.

 

(c)
Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement.

 

(d)
Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

    	-29-

    	 

    

 

(e)
Entire Agreement. The Transaction Documents supersede all other prior oral or written agreements between the Investor,
the Company, their affiliates and Persons acting on their behalf with respect to the subject matter thereof, and this Agreement,
the other Transaction Documents and the instruments referenced herein contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the
Investor makes any representation, warranty, covenant or undertaking with respect to such matters. The Company acknowledges and
agrees that is has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than as
expressly set forth in the Transaction Documents.

 

(f)
Notices. Any notices, consents or other communications required or permitted to be given under the terms of this Agreement
must be in writing and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when
sent by facsimile or email (provided confirmation of transmission is mechanically or electronically generated and kept on file
by the sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each
case properly addressed to the party to receive the same. The addresses for such communications shall be:

 

If
to the Company:

 

Beyond
Air, Inc.

825
East Gate Blvd., Suite 320

Garden
City, New York 11530

	 	Telephone:	(516) 665-8200
	 	E-mail:	slisi@beyondair.net
	 	Attention:	Steven Lisi

 

With
a copy to (which shall not constitute notice or service of process):

 

Sichenzia
Ross Ference Kesner LLP

1185
Avenue of the Americas, 37th Floor

New
York, New York 10036

	 	Telephone:	(212) 930-9700
	 	Facsimile:	(212) 930-9725
	 	E-mail:	gsichenzia@srf.law
	 	Attention:	Gregory Sichenzia

 

If
to the Investor:

 

Lincoln
Park Capital Fund, LLC

440
North Wells, Suite 410

Chicago,
IL 60654

	 	Telephone:	312-822-9300
	 	Facsimile:	312-822-9301
	 	E-mail:	jscheinfeld@lpcfunds.com/jcope@lpcfunds.com
	 	Attention:	Josh Scheinfeld/Jonathan Cope

 

With
a copy to (which shall not constitute notice or service of process):

 

K&L
Gates LLP

200
S. Biscayne Blvd., Suite 3900

Miami,
FL 33131

	 	Telephone:	(305) 539-3306
	 	Facsimile:	(305) 358-7095
	 	E-mail:	clayton.parker@klgates.com
	 	Attention:	Clayton E. Parker, Esq.

 

    	-30-

    	 

    

 

If
to the Transfer Agent:

 

Action
Stock Transfer

2469
E. Fort Union Blvd, Suite 214

Salt
Lake City, UT 84121

	 	Telephone:	(801) 274-1088
	 	Facsimile:	(801) 274-1099
	 	Attention:	Justeene Blankenship

 

or
at such other address, email address and/or facsimile number and/or to the attention of such other Person as the recipient party
has specified by written notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written
confirmation of receipt (A) given by the recipient of such notice, consent or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine or email account containing the time, date, and recipient facsimile number or
email address, as applicable, or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence
of personal service, receipt by facsimile or email or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

(g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Investor, including by merger or consolidation. The Investor may not assign its rights or obligations under this
Agreement.

 

(h)
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i)
Publicity. The Company shall afford the Investor and its counsel with the opportunity to review and comment upon, shall
consult with the Investor and its counsel on the form and substance of, and shall give due consideration to all such comments
from the Investor or its counsel on, any press release, SEC filing or any other public disclosure by or on behalf of the Company
relating to the Investor, its purchases hereunder or any aspect of the Transaction Documents or the transactions contemplated
thereby, not less than 24 hours prior to the issuance, filing or public disclosure thereof. The Investor must be provided with
a final version of any such press release, SEC filing or other public disclosure at least 24 hours prior to any release, filing
or use by the Company thereof. The Company agrees and acknowledges that its failure to fully comply with this provision constitutes
a Material Adverse Effect.

 

(j)
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to consummate and make effective, as soon as reasonably possible, the Commencement, and to carry out the intent
and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)
No Financial Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Investor that it has
not engaged any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby.
The Investor represents and warrants to the Company that it has not engaged any financial advisor, placement agent, broker or
finder in connection with the transactions contemplated hereby. The Company shall be responsible for the payment of any fees or
commissions, if any, of any financial advisor, placement agent, broker or finder relating to or arising out of the transactions
contemplated hereby. The Company shall pay, and hold the Investor harmless against, any liability, loss or expense (including,
without limitation, reasonable attorneys’ fees and out of pocket expenses) arising in connection with any such claim.

 

    	-31-

    	 

    

 

(l)
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

(m)
Remedies, Other Obligations, Breaches and Injunctive Relief. The Investor’s remedies provided in this Agreement,
including, without limitation, the Investor’s remedies provided in Section 9, shall be cumulative and in addition
to all other remedies available to the Investor under this Agreement, at law or in equity (including a decree of specific performance
and/or other injunctive relief), no remedy of the Investor contained herein shall be deemed a waiver of compliance with the provisions
giving rise to such remedy and nothing herein shall limit the Investor’s right to pursue actual damages for any failure
by the Company to comply with the terms of this Agreement. The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Investor and that the remedy at law for any such breach may be inadequate. The Company therefore
agrees that, in the event of any such breach or threatened breach, the Investor shall be entitled, in addition to all other available
remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other
security being required.

 

(n)
Enforcement Costs. In the event of a dispute arising out of or relating to this Agreement, if a court of competent jurisdiction
determines in a final, non-appealable order that a party has breached this Agreement, then, in addition to any other available
remedies, the non-breaching party shall be entitled to, and the breaching party shall be liable for, the reasonable legal fees
and expenses incurred by the non-breaching party in connection with the dispute, including any appeals in connection therewith.
If this Agreement is placed by the Investor in the hands of an attorney for enforcement or is enforced by the Investor through
any legal proceeding or an attorney is retained to represent the Investor in any bankruptcy, reorganization, receivership or other
proceedings affecting creditors’ rights and involving a claim under this Agreement, then the Company shall pay to the Investor,
as incurred by the Investor, all reasonable costs and expenses including reasonable attorneys’ fees incurred in connection
therewith, in addition to all other amounts due hereunder.

 

(o)
Amendment and Waiver; Failure or Indulgence Not Waiver. No provision of this Agreement (i) may be amended other than by
a written instrument signed by both parties hereto and (ii) may be waived other than in a written instrument signed by the party
against whom enforcement of such waiver is sought. No failure or delay in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege.

 

*
* * * *

 

    	-32-

    	 

    

 

IN
WITNESS WHEREOF, the Investor and the Company have caused this Purchase Agreement to be duly executed as of the date first
written above.

 

	 	THE
    COMPANY:
	 	 	 
	 	BEYOND
    AIR, INC.
	 	 	 
	 	By:	/s/
    Steve Lisi
	 	Name:	Steve
    Lisi
	 	Title:	CEO
	 	 	 
	 	INVESTOR:
	 	 
	 	LINCOLN
    PARK CAPITAL FUND, LLC
	 	BY:
    LINCOLN PARK CAPITAL, LLC
	 	 	 
	 	By:	/s/
    Josh Scheinfeld
	 	Name:	Josh
    Scheinfeld 
	 	Title:	President

 

    	-33-

    	 

    

 

EXHIBITS

 

	Exhibit
    A	Form
    of Officer’s Certificate
	Exhibit
    B	Form
    of Resolutions of the Board of Directors of the Company
	Exhibit
    C	Form
    of Secretary’s Certificate

 

    	 

    	 

    

 

EXHIBIT
A

 

FORM
OF OFFICER’S CERTIFICATE

 

This
Officer’s Certificate (“Certificate”) is being delivered pursuant to Section 8(I)(d) of that certain
Purchase Agreement dated as of May 14, 2020, (“Purchase Agreement”), by and between BEYOND AIR, INC.,
a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC (the “Investor”).
Terms used herein and not otherwise defined shall have the meanings ascribed to them in the Purchase Agreement.

 

The
undersigned, Steven Lisi, Chief Executive Officer of the Company, hereby certifies, on behalf of the Company and not in his individual
capacity, as follows:

 

1.
I am the Chief Executive Officer of the Company;

 

2.
The representations and warranties of the Company are true and correct in all material respects (except to the extent that any
of such representations and warranties is already qualified as to materiality in Section 4 of the Purchase Agreement, in which
case, such representations and warranties are true and correct without further qualification) as of the date of the Purchase Agreement
and as of the Commencement Date] as though made at that time (except for representations and warranties that speak as of a specific
date, in which case such representations and warranties are true and correct as of such date);

 

3.
The Company has performed, satisfied and complied in all material respects with covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date.

 

4.
The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy
Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as
they become due.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, I have hereunder signed my name on this ___ day of ___________, 2020.

 

	 	 
	 	Name:	 
	 	Title:	 

 

The
undersigned as Secretary of BEYOND AIR, INC., a Delaware corporation, hereby certifies that Steven Lisi is the duly elected,
appointed, qualified and acting Chief Executive Officer of the Company, and that the signature appearing above is his genuine
signature.

 

	 	 
	 	_________________,
    Secretary

 

    	 

    	 

    

 

EXHIBIT
B

 

FORM
OF COMPANY RESOLUTIONS

FOR
SIGNING PURCHASE AGREEMENT

UNANIMOUS
WRITTEN CONSENT OF

BEYOND
AIR, INC.

 

The
undersigned, constituting all of the members of the Board of Directors (the “Board”) of Beyond
Air, Inc., a Delaware corporation (the “Company”), pursuant to Section 141(f) of the Delaware
General Corporation Law (the “DGCL”), hereby adopt the following resolutions by unanimous written
consent and direct that this consent be filed with the minutes of the proceedings of the Board:

 

Whereas,
there has been presented to the Board a draft of the Purchase Agreement (the “Purchase Agreement”) by
and between the Company and Lincoln Park Capital Fund, LLC (“Lincoln Park”), providing for the purchase
by Lincoln Park of up to Forty Million Dollars ($40,000,000) of the Company’s common stock, $0.0001 par value per share
(the “Common Stock”) and a draft of the Registration Rights Agreement (the “Registration
Rights Agreement”) by and between the Company and Lincoln Park providing for the registration of the shares of the
Company’s Common Stock issuable in respect of the Purchase Agreement on behalf of the Company; and

 

Whereas,
after careful consideration of the Purchase Agreement, the documents incident thereto and other factors deemed relevant by the
Board, the Board has determined that it is advisable and in the best interests of the Company and its stockholders to engage in
the transactions contemplated by the Purchase Agreement, including, but not limited to, the payment of $1,000,000 to Lincoln Park
as a commitment fee (the “Commitment Fee”) and the sale of shares of Common Stock to Lincoln Park up
to the available amount under the Purchase Agreement (the “Purchase Shares”) and to register such shares
as contemplated by the Registration Rights Agreement.

 

Transaction
Documents

 

Now,
Therefore, Be It Resolved, that the transactions
described in the Purchase Agreement are hereby approved and each of ____- and ___________ (the “Authorized Officers”)
are severally authorized to execute and deliver the Purchase Agreement, and any other agreements or documents contemplated thereby
including, without limitation, the Registration Rights Agreement, with such amendments, changes, additions and deletions as the
Authorized Officers may deem to be appropriate and approve on behalf of, the Company, such approval to be conclusively evidenced
by the signature of an Authorized Officer thereon; and

 

Further
Resolved, that the terms and provisions of
the Registration Rights Agreement by and among the Company and Lincoln Park are hereby approved and the Authorized Officers are
authorized to execute and deliver the Registration Rights Agreement (pursuant to the terms of the Purchase Agreement), with such
amendments, changes, additions and deletions as the Authorized Officer may deem appropriate and approve on behalf of, the Company,
such approval to be conclusively evidenced by the signature of an Authorized Officer thereon; and

 

Further
Resolved, that the terms and provisions of
the forms of Irrevocable Transfer Agent Instructions and Notice of Effectiveness of Registration Statement (collectively, the
“Instructions”) are hereby approved and the Authorized Officers are authorized to execute and deliver
the Instructions on behalf of the Company in accordance with the Purchase Agreement, with such amendments, changes, additions
and deletions as the Authorized Officers may deem appropriate and approve on behalf of, the Company, such approval to be conclusively
evidenced by the signature of an Authorized Officer thereon; and

 

    	 

    	 

    

 

Execution
of Purchase Agreement

 

Further
Resolved, that the Company be and it hereby
is authorized to execute the Purchase Agreement providing for the purchase of up to Forty Million Dollars ($40,000,000) of the
Company’s common stock; and

 

Issuance
of Common Stock

 

Further
Resolved, that the Company is hereby authorized
to issue to Lincoln Park Capital Fund, LLC, 325,000 shares of Common Stock as Initial Purchase Shares, and that upon issuance
of the Initial Purchase Shares pursuant to the Purchase Agreement the Initial Purchase Shares shall be duly authorized, validly
issued, fully paid and nonassessable with no personal liability attaching to the ownership thereof; and

 

Further
Resolved, that the Company is hereby authorized
to issue shares of Common Stock upon the purchase of Purchase Shares up to the Available Amount under the Purchase Agreement in
accordance with the terms of the Purchase Agreement and that, upon issuance of the Purchase Shares pursuant to the Purchase Agreement,
the Purchase Shares will be duly authorized, validly issued, fully paid and nonassessable with no personal liability attaching
to the ownership thereof; and

 

Further
Resolved, that
the Company shall initially reserve 5,000,000 shares of Common Stock for issuance as Purchase Shares (other than Initial Purchase
Shares) under the Purchase Agreement.

 

Approval
of Actions

 

Further
Resolved, that, without limiting the foregoing,
the Authorized Officers are, and each of them hereby is, authorized and directed to proceed on behalf of the Company and to take
all such steps as deemed necessary or appropriate, with the advice and assistance of counsel, to cause the Company to consummate
the agreements referred to herein and to perform its obligations under such agreements; and

 

Further
Resolved, that the Authorized Officers be,
and each of them hereby is, authorized, empowered and directed on behalf of and in the name of the Company, to take or cause to
be taken all such further actions and to execute and deliver or cause to be executed and delivered all such further agreements,
amendments, documents, certificates, reports, schedules, applications, notices, letters and undertakings and to incur and pay
all such fees and expenses as in their judgment shall be necessary, proper or desirable to carry into effect the purpose and intent
of any and all of the foregoing resolutions, and that all actions heretofore taken by any officer or director of the Company in
connection with the transactions contemplated by the agreements described herein are hereby approved, ratified and confirmed in
all respects.

 

    	 

    	 

    

 

This
Action by Unanimous Written Consent shall be filed with the minutes of the proceedings of the Board. This Action may be signed
in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute one instrument.

 

IN
WITNESS WHEREOF, the undersigned have executed this Unanimous Written Consent of the Board of Directors of Beyond Air, Inc.
as of date written below.

 

	By:	 	 	By:	 
	Date:	 	 	Date:	 
	 	 	 	 	 
	By:	 	 	By:	 
	Date:	 	 	Date:	 
	 	 	 	 	 
	By:	 	 	By:	 
	Date:	 	 	Date:	 
	 	 	 	 	 
	By:	 	 	 	 
	Date:	 	 	 	 

 

    	 

    	 

    

 

EXHIBIT
C

 

FORM
OF SECRETARY’S CERTIFICATE

 

This
Secretary’s Certificate (“Certificate”) is being delivered pursuant to Section 8(II)(k) of that certain
Purchase Agreement dated as of May 14, 2020 (“Purchase Agreement”), by and between BEYOND AIR, INC., a Delaware
corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC (the “Investor”), pursuant to which
the Company may sell to the Investor up to Forty Million Dollars ($40,000,000) of the Company’s Common Stock, $0.0001 par
value per share (the “Common Stock”). Terms used herein and not otherwise defined shall have the meanings ascribed
to them in the Purchase Agreement.

 

The
undersigned, ____________, Secretary of the Company, hereby certifies, on behalf of the Company and not in his individual capacity,
as follows:

 

1.
I am the Secretary of the Company.

 

2.
Attached hereto as Exhibit A and Exhibit B are true, correct and complete copies of the Company’s Amended
and Restated Bylaws (“Bylaws”) and Amended and Restated Certificate of Incorporation, as supplemented by a Certificate
of Correction (“Charter”), and no action has been taken by the Company, its directors, officers or stockholders, in
contemplation of the filing of any further amendment relating to or affecting the Bylaws or Charter.

 

3.
Attached hereto as Exhibit C are true, correct and complete copies of the resolutions duly adopted by the Board of Directors
of the Company by unanimous written consent effective as of _______, 2020. Such resolutions have not been amended, modified or
rescinded and remain in full force and effect and such resolutions are the only resolutions adopted by the Company’s Board
of Directors, or any committee thereof, or the stockholders of the Company relating to or affecting (i) the entering into and
performance of the Purchase Agreement, or the issuance, offering and sale of the Purchase Shares and (ii) and the performance
of the Company of its obligation under the Transaction Documents as contemplated therein.

 

4.
As of the date hereof, the authorized, issued and reserved capital stock of the Company is as set forth on Exhibit D hereto.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, I have hereunder signed my name on this ___ day of ____________, 2020.

 

	 	 	 
	 	Secretary	 

 

The
undersigned as Chief Executive Officer of BEYOND AIR, INC., a Delaware corporation, hereby certifies that ______________
is the duly elected, appointed, qualified and acting Secretary of Beyond Air, Inc., and that the signature appearing above is
his genuine signature.

 

	 	 	 
	 	Chief
    Executive OfficerExhibit 4.1

 

ONE HUNDRED FORTY-FIRST SUPPLEMENTAL
INDENTURE

 

Providing among other things for

 

FIRST MORTGAGE BONDS,

 

$134,349,000 Floating Rate Series due 2070

 

Dated as of May 20, 2020

 

 

 

CONSUMERS ENERGY COMPANY

 

TO

 

THE BANK OF NEW YORK MELLON,

 

TRUSTEE

 

Counterpart
_____ of 80

 

    	 	 	 

     

    

 

THIS ONE HUNDRED FORTY-FIRST
SUPPLEMENTAL INDENTURE, dated as of May 20, 2020 (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 Floating Rate Series due 2070, which bonds shall also bear the descriptive title
 “First Mortgage Bonds” (hereinafter provided for and hereinafter sometimes referred to as the “2070
Bonds” or the “Bonds”), the bonds of which series are to be issued as registered bonds without coupons and
are to bear interest at a variable rate reset each interest period as set forth herein and are to mature on May 20, 2070,
subject to the right of the Company to shorten such maturity upon a Tax Event (as defined in Section 7) as provided in
Section 7 hereof; and

 

    	 	2	 

     

    

 

WHEREAS, the Company
and J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities,
LLC (the “Underwriters”) have entered into an Underwriting Agreement dated May 8, 2020, pursuant to which the Company
agreed to sell and the Underwriters agreed to buy $134,349,000 in aggregate principal amount of 2070 Bonds; and

 

WHEREAS, the registered
bonds without coupons of the 2070 Bonds and the Trustee’s Authentication Certificate thereon are to be substantially in the
following form, to wit:

 

{FORM OF REGISTERED BOND OF THE 2070 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

FLOATING RATE SERIES DUE 2070

 

	CUSIP: 210518 DK9 	$__________
	ISIN: US210518DK94	 

 

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 May 20, 2070 (subject to
the right of the Company to shorten such maturity upon a Tax Event (as defined and described below), the “Stated
Maturity”), and to pay to the registered holder hereof interest on said sum from and including the latest quarterly
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 August 20, 2020, in which case from and including
May 20, 2020 (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 quarterly 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 August 20, 2020, from and including May 20, 2020), in each case to but excluding the next succeeding interest payment date
or the date of maturity, as the case may be (each such period, an “Interest Period”), at a variable interest rate
described herein (the “Interest Rate”), until the principal hereof is paid or duly made available for payment,
payable on February 20, May 20, August 20 and November 20 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 (as
defined below) or its successor in trust under the Indenture (as defined below) 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

 

    	 	4	 

     

    

 

CONSUMERS ENERGY COMPANY

 

FIRST MORTGAGE BOND

FLOATING RATE SERIES DUE 2070

 

The interest payable
on any February 20, May 20, August 20 or November 20 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 February 5, May 5, August 5 or November 5 (whether or not such February 5, May 5, August 5 or November 5 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 Stated Maturity shall be paid to the person to
whom the principal amount is paid. The initial interest payment date will be August 20, 2020. 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, Floating Rate Series due 2070 (sometimes herein referred to as the “2070
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.

 

This bond shall bear
interest quarterly at the Three-Month LIBOR Rate (as defined below) minus 30 basis points (0.30%) (negative 0.30%, the “Margin”),
subject to the provisions (including, for the avoidance of doubt, the benchmark transition provisions (as defined below)) set forth
below, reset quarterly, provided that the Interest Rate shall not be less than 0.00%. The Interest Rate for the period from May
20, 2020 to, but excluding, August 20, 2020 was determined in accordance with the provisions set forth below on May 18, 2020. The
Interest Rate for each subsequent Interest Period shall be reset quarterly on the related LIBOR Rate Reset Date (as defined below).
The Interest Rate in effect on any LIBOR Rate Reset Date will be the applicable Interest Rate as reset on that date, and the Interest
Rate applicable to any other day will be the Interest Rate as reset on the immediately preceding LIBOR Rate Reset Date (or, in
the case of any day preceding the first LIBOR Rate Reset Date, the Interest Rate that was determined in accordance with the provisions
set forth below on May 18, 2020). The Interest Rate for any Interest Period will at no time be higher than the maximum rate then
permitted by applicable law.

 

    	 	5	 

     

    

 

In any case where any
interest payment date, redemption date, repayment date or maturity date of this bond will not be a Business Day (as defined below),
then payment of interest or principal (and premium, if any) need not be made on such date, but may be made on the next day that
is a Business Day with the same force and effect as if made on the interest payment date, redemption date, repayment date or maturity
date, and no interest shall accrue on the amount so payable for the period from and after such interest payment date, redemption
date, repayment date or maturity date, as the case may be, to such Business Day; provided, however, that if such next day that
is a Business Day in respect of any such interest payment date (but not in respect of any such redemption date, repayment date
or maturity date) is in the next succeeding calendar month, then such interest payment date shall be the immediately preceding
Business Day. If any LIBOR Rate Reset Date falls on a day that is not a Business Day, the LIBOR Rate Reset Date will be postponed
to the next day that is a Business Day, except that if that Business Day is in the next succeeding calendar month, the LIBOR Rate
Reset Date shall be the immediately preceding Business Day.

 

“Business Day” means 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.

 

“Calculation Agent” means a banking
institution or trust company appointed by the Company to act as calculation agent, which initially shall be The Bank of New York
Mellon.

 

“LIBOR Business Day” means any
day on which dealings in deposits in U.S. dollars are transacted in the London Inter-Bank Market.

 

“LIBOR Interest Determination Date”
means (i) the second LIBOR Business Day preceding each LIBOR Rate Reset Date or (ii) May 18, 2020 in the case of the initial Interest
Period.

 

“LIBOR Rate Reset Date” means,
subject to the above paragraph immediately preceding the definition of “Business Day,” the February 20, May 20, August
20 and November 20 of each year continuing until the Stated Maturity, commencing on August 20, 2020.

 

“Three-Month LIBOR
Rate” means the rate determined in accordance with the following provisions:

 

(1)  
On the related LIBOR Interest Determination Date, the Calculation Agent will determine the Three-Month LIBOR Rate, which
will be the rate for deposits in U.S. dollars having an index maturity of three months that appears on the Bloomberg L.P. page
 “BBAM” (or on such other page as may replace the Bloomberg L.P. page “BBAM” on that service), or, if on
such interest determination date, the three-month LIBOR does not appear or is not available on the designated Bloomberg L.P. page
 “BBAM” (or on such other page as may replace the Bloomberg L.P. page “BBAM” on that service), the Reuters
Page LIBOR01 (or such other page as may replace the Reuters Page LIBOR01 on that service), as of 11:00 a.m., London time, on the
LIBOR Interest Determination Date.

 

    	 	6	 

     

    

 

(2)  
If the Three-Month LIBOR Rate cannot be determined as described in clause (1) above on the LIBOR Interest Determination
Date, the Calculation Agent will request the principal London offices of four major reference banks in the London Inter-Bank Market
selected by the Company to provide the Calculation Agent with their offered quotations for deposits in U.S. dollars for the period
of three months, beginning on the applicable LIBOR Rate Reset Date, to prime banks in the London Inter-Bank Market at approximately
11:00 a.m., London time, on that LIBOR Interest Determination Date and in a principal amount of not less than $1,000,000. If at
least two quotations are provided, then the Three-Month LIBOR Rate will be the average of those quotations. If fewer than two
quotations are provided, then the Three-Month LIBOR Rate will be the average of the rates quoted at approximately 11:00 a.m.,
New York City time, on the LIBOR Interest Determination Date by three major banks (which may include affiliates of underwriters
of the Bonds) in New York City selected by the Company for loans in U.S. dollars to leading European banks, having a three-month
maturity and in a principal amount of not less than $1,000,000. If the banks selected by the Company are not providing quotations
in the manner described by this clause (2), the rate for the Interest Period following the LIBOR Interest Determination Date will
be the rate already in effect on that LIBOR Interest Determination Date.

 

Notwithstanding clause
(1) and clause (2) in the preceding paragraph, if the Company (or its Designee (as defined below)) determines on or prior to the
relevant LIBOR Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date (each as
defined below) have occurred with respect to the Three-Month LIBOR Rate (or the then-current Benchmark (as defined below), as applicable),
then the provisions set forth below under “Effect of Benchmark Transition Event”, which are referred to herein as the
 “benchmark transition provisions”, shall thereafter apply to all determinations of the rate of interest payable on
the Bonds. In accordance with the benchmark transition provisions, after a Benchmark Transition Event and its related Benchmark
Replacement Date have occurred, the amount of interest that shall be payable for each Interest Period shall be an annual rate equal
to the sum of the Benchmark Replacement (as defined below) and the Margin. However, if the Company (or its Designee) determines
that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the then-current Benchmark,
but for any reason the Benchmark Replacement has not been determined as of the relevant LIBOR Interest Determination Date, the
Interest Rate for the applicable Interest Period shall be equal to the Interest Rate for the immediately preceding Interest Period,
as determined by the Company (or its Designee).

 

Effect of Benchmark Transition Event

 

If the Company (or its Designee) determines
that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time (as defined
below) in respect of any determination of the Benchmark on any date, the Benchmark Replacement shall replace the then-current Benchmark
for all purposes relating to the Bonds in respect of such determination on such date and all determinations on all subsequent dates.

 

In connection with the implementation of
a Benchmark Replacement, the Company (or its Designee) shall have the right to make Benchmark Replacement Conforming Changes (as
defined below) from time to time.

 

    	 	7	 

     

    

 

Any determination, decision or election
that may be made by the Company (or its Designee) pursuant to this subsection “Effect of Benchmark Transition Event”,
including any determination with respect to tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance
or date and any decision to take or refrain from taking any action or any selection, shall be conclusive and binding absent manifest
error, shall be made in the Company’s (or its Designee’s) sole discretion, and, notwithstanding anything to the contrary
in the documentation relating to the Bonds, shall become effective without consent from the holders of the Bonds or any other party.
Neither the Trustee nor the Calculation Agent shall have any liability for any determination made by or on behalf of the Company
or its Designee in connection with a Benchmark Transition Event or a Benchmark Replacement.

 

“Benchmark” means, initially,
the Three-Month LIBOR Rate; provided, that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
with respect to the Three-Month LIBOR Rate or any other then-current Benchmark, then “Benchmark” means the applicable
Benchmark Replacement.

 

“Benchmark Replacement” means
the Interpolated Benchmark (as defined below) with respect to the then-current Benchmark, plus the Benchmark Replacement Adjustment
(as defined below) for such Benchmark; provided, that if the Company (or its Designee) cannot determine the Interpolated Benchmark
as of the Benchmark Replacement Date, then “Benchmark Replacement” means the first alternative set forth in the order
below that can be determined by the Company (or its Designee) as of the Benchmark Replacement Date:

 

(1)    
the sum of (a) Term SOFR (as defined below) and (b) the Benchmark Replacement Adjustment;

 

(2)    
the sum of (a) Compounded SOFR (as defined below) and (b) the Benchmark Replacement Adjustment;

 

(3)    
the sum of (a) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body (as
defined below) as the replacement for the then-current Benchmark for the applicable Corresponding Tenor (as defined below) and
(b) the Benchmark Replacement Adjustment;

 

(4)    
the sum of (a) the ISDA Fallback Rate (as defined below) and (b) the Benchmark Replacement Adjustment; and

 

(5)    
the sum of (a) the alternate rate of interest that has been selected by the Company (or its Designee) as the replacement
for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of
interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (b) the
Benchmark Replacement Adjustment.

 

    	 	8	 

     

    

 

“Benchmark Replacement Adjustment”
means the first alternative set forth in the order below that can be determined by the Company (or its Designee) as of the Benchmark
Replacement Date:

 

(1)    
the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative
value or zero), that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark
Replacement (as defined below);

 

(2)    
if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment
(as defined below); and

 

(3)    
the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Company (or its
Designee) giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread
adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar
denominated floating rate notes at such time.

 

The Benchmark Replacement Adjustment shall
not include the Margin, and the Margin shall be applied to the Benchmark Replacement to determine the interest payable on the Bonds.

 

“Benchmark Replacement
Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes
(including changes to the definition of  “Interest Period”, timing and frequency of determining rates and making
payments of interest, rounding of amounts or tenor, and other administrative matters) that the Company (or its Designee) decides
may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice
(or, if the Company (or its Designee) decides that adoption of any portion of such market practice is not administratively feasible
or if the Company (or its Designee) determines that no market practice for use of the Benchmark Replacement exists, in such other
manner as the Company (or its Designee) determines is reasonably necessary).

 

“Benchmark Replacement
Date” means the earlier to occur of the following events with respect to the then-current Benchmark:

 

(1)    
in the case of clause (1) or clause (2) of the definition of “Benchmark Transition Event”, the later of
(a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator
of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

 

(2)    
in the case of clause (3) of the definition of “Benchmark Transition Event”, the date of the public statement
or publication of information referenced therein.

 

For the avoidance of
doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time
in respect of any determination, the Benchmark Replacement Date shall be deemed to have occurred prior to the Reference Time for
such determination.

 

    	 	9	 

     

    

 

“Benchmark Transition
Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 

(1)     
a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such
administrator has ceased or shall cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such
statement or publication, there is no successor administrator that shall continue to provide the Benchmark;

 

(2)     
a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the
central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark,
a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency
or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased
or shall cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication,
there is no successor administrator that shall continue to provide the Benchmark; or

 

(3)     
a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing
that the Benchmark is no longer representative.

 

“Compounded SOFR”
means the compounded average of SOFRs (as defined below) for the applicable Corresponding Tenor, with the rate, or methodology
for this rate, and conventions for this rate being established by the Company (or its Designee) in accordance with:

 

(1)     
the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental
Body for determining Compounded SOFR; provided that:

 

(2)     
if, and to the extent that, the Company (or its Designee) determines that Compounded SOFR cannot be determined in accordance
with clause (1) above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the
Company (or its Designee) giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating
rate notes at such time.

 

For the avoidance of
doubt, the calculation of Compounded SOFR shall exclude the Benchmark Replacement Adjustment and the Margin.

 

“Corresponding
Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding
business day adjustment) as the applicable tenor for the then-current Benchmark.

 

“Designee”
means an independent financial advisor or any other designee of the Company.

 

“Federal Reserve
Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source.

 

    	 	10	 

     

    

 

“Interpolated
Benchmark” with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a
linear basis between (i) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the
Corresponding Tenor and (ii) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than
the Corresponding Tenor.

 

“ISDA Definitions”
means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto,
as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from
time to time.

 

“ISDA Fallback
Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives
transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to
the Benchmark for the applicable tenor.

 

“ISDA Fallback
Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon
the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA
Fallback Adjustment.

 

“Reference Time”
with respect to any determination of the Benchmark means (i) if the Benchmark is the Three-Month LIBOR Rate, 11:00 a.m., London
time, on the LIBOR Interest Determination Date, and (ii) if the Benchmark is not the Three-Month LIBOR Rate, the time determined
by the Company (or its Designee) in accordance with the Benchmark Replacement Conforming Changes.

 

“Relevant Governmental
Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or
convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“SOFR” with
respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as
the administrator of the benchmark (or a successor administrator), on the Federal Reserve Bank of New York’s Website.

 

“Term SOFR”
means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

“Unadjusted Benchmark
Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

All percentages resulting
from any calculation of any Interest Rate for the 2070 Bonds will be rounded, if necessary, to the nearest one hundred-thousandth
of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 3.876545% (or 0.03876545) being rounded
to 3.87655% (or 0.0387655)), and all dollar amounts used in or resulting from such calculations will be rounded to the nearest
cent (with one-half cent being rounded upwards). Any percentage resulting from any calculation of any Interest Rate for the Bonds
less than 0.00% will be deemed to be 0.00% (or 0.0000).

 

    	 	11	 

     

    

 

Absent willful
misconduct, bad faith or manifest error, the calculation of the applicable Interest Rate for each Interest Period by the
Calculation Agent or, in certain circumstances described herein, by the Company or its Designee will be final and binding on
the Company, the Trustee, the Calculation Agent and holders of the 2070 Bonds. The holders of the 2070 Bonds may obtain the
Interest Rate for the current and preceding Interest Periods by writing the Calculation Agent at The Bank of New York Mellon,
Attention: Corporate Trust Administration, 240 Greenwich Street, New York, New York 10286, or any successor appointed by the
Company.

 

In no event shall the
Calculation Agent be responsible for determining any substitute for the Three-Month LIBOR Rate or for making any adjustments to
any alternative benchmark or spread thereon, the business day convention, interest determination dates or any other relevant methodology
for calculating any such substitute or successor benchmark. In connection with the foregoing, the Calculation Agent shall be entitled
to conclusively rely on any determinations made by the Company or its Designee and shall have no liability for such actions taken
at the direction of the Company.

 

The Calculation Agent
shall, as soon as practicable after 11:00 a.m., London time, on each LIBOR Interest Determination Date, determine the Interest
Rate and the Company will calculate the amount of interest payable on the 2070 Bonds in respect of the applicable Interest Period
(the “Interest Amount”). The Interest Amount shall be calculated by multiplying the Interest Rate for that Interest
Period by a fraction, the numerator of which will be the actual number of days elapsed during that Interest Period (determined
by including the first day of the Interest Period and excluding the last day of the Interest Period), and the denominator of which
will be 360, and by multiplying the result by the aggregate principal amount of the 2070 Bonds. The determination of the Interest
Amount by the Company will (in the absence of willful misconduct, bad faith or manifest error) be final, conclusive and binding
on all concerned. None of the Trustee, the Calculation Agent or the Company (or any of their respective officers, directors, agents,
beneficiaries, employees or affiliates) shall have any liability to any person for (i) the selection of the reference banks or
the major banks or (ii) failure of the reference banks or the major banks to provide quotations to the Calculation Agent. Promptly
upon the determination of the Interest Rate and the calculation of the Interest Amount, the Calculation Agent and the Company,
respectively, will notify the Trustee of such Interest Rate and Interest Amount.

 

Any or all of the 2070
Bonds may be redeemed by the Company at its option, in whole or in part, at any time and from time to time on or after May 20,
2050 and prior to maturity, in amounts of $1,000 or any integral multiple of $1,000 in excess thereof. The redemption price for
any such 2070 Bonds being redeemed on any redemption date shall be equal to the applicable percentage of the principal amount of
such 2070 Bonds being redeemed set forth in the following table, plus accrued and unpaid interest, if any, on such 2070 Bonds being
redeemed to, but not including, the redemption date:

 

	Redemption Date	 	Percentage	 
	May 20, 2050 to November 19, 2050	 	 	105.00	%
	November 20, 2050 to May 19, 2051	 	 	105.00	%
	May 20, 2051 to November 19, 2051	 	 	104.50	%
	November 20, 2051 to May 19, 2052	 	 	104.50	%
	May 20, 2052 to November 19, 2052	 	 	104.00	%
	November 20, 2052 to May 19, 2053	 	 	104.00	%
	May 20, 2053 to November 19, 2053	 	 	103.50	%
	November 20, 2053 to May 19, 2054	 	 	103.50	%
	May 20, 2054 to November 19, 2054	 	 	103.00	%
	November 20, 2054 to May 19, 2055	 	 	103.00	%
	May 20, 2055 to November 19, 2055	 	 	102.50	%
	November 20, 2055 to May 19, 2056	 	 	102.50	%
	May 20, 2056 to November 19, 2056	 	 	102.00	%
	November 20, 2056 to May 19, 2057	 	 	102.00	%
	May 20, 2057 to November 19, 2057	 	 	101.50	%
	November 20, 2057 to May 19, 2058	 	 	101.50	%
	May 20, 2058 to November 19, 2058	 	 	101.00	%
	November 20, 2058 to May 19, 2059	 	 	101.00	%
	May 20, 2059 to November 19, 2059	 	 	100.50	%
	November 20, 2059 to May 19, 2060	 	 	100.50	%
	May 20, 2060 and thereafter	 	 	100.00	%

 

    	 	12	 

     

    

 

If less than all of the
2070 Bonds are to be redeemed and (i) the 2070 Bonds are in global form, the interests in the 2070 Bonds to be redeemed shall be
selected for redemption by The Depository Trust Company, a New York corporation, or its duly appointed successor (the “Depository”),
in accordance with the Depository’s standard procedures therefor, or (ii) the 2070 Bonds are in definitive form, the Trustee
shall select the 2070 Bonds to be redeemed by lot. 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 2070 Bonds to be redeemed (which, as long as the 2070 Bonds are held
in the book-entry only system, will be the Depository (or its 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 2070 Bonds as to which
there shall have been no such failure or defect. If, at the time a notice of redemption is given, the moneys to fund the redemption
price are not on deposit with the Trustee, then, if such notice so provides, the redemption shall be subject to the receipt of
the moneys to fund the redemption price on or before the relevant redemption date and such notice of redemption shall be of no
force and effect unless such moneys are so received. On and after the date fixed for redemption (unless the Company shall default
in the payment of the 2070 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 2070 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.

 

The 2070 Bonds are repayable
at the option of the holder of such 2070 Bonds, in whole or in part, on the repayment dates and at the repayment prices (in each
case expressed as a percentage of the principal amount of such 2070 Bonds being repaid) set forth in the following table, and on
May 20 of every second year thereafter until May 20, 2067 (i.e. commencing on May 20, 2033, through and including May 20, 2067),
at 100% of the principal amount of such 2070 Bonds being repaid, plus, in each case, accrued and unpaid interest, if any, on such
2070 Bonds being repaid to, but not including, the repayment date:

 

	Repayment Date	 	Price	 
	May 20, 2021	 	 	98.00	%
	November 20, 2021	 	 	98.00	%
	May 20, 2022	 	 	98.00	%
	November 20, 2022	 	 	98.00	%
	May 20, 2023	 	 	98.00	%
	November 20, 2023	 	 	98.00	%
	May 20, 2024	 	 	98.00	%
	November 20, 2024	 	 	98.00	%
	May 20, 2025	 	 	98.00	%
	November 20, 2025	 	 	99.00	%
	May 20, 2026	 	 	99.00	%
	November 20, 2026	 	 	99.00	%
	May 20, 2027	 	 	99.00	%
	November 20, 2027	 	 	99.00	%
	May 20, 2028	 	 	99.00	%
	November 20, 2028	 	 	99.00	%
	May 20, 2029	 	 	99.00	%
	November 20, 2029	 	 	99.00	%
	May 20, 2030	 	 	99.00	%
	November 20, 2030	 	 	99.00	%
	May 20, 2031	 	 	100.00	%

 

    	 	13	 

     

    

 

A beneficial owner of
a 2070 Bond held in book-entry form shall give notice, at least 30 days but not more than 60 days before the applicable repayment
date, to elect to have its 2070 Bonds repaid, through its participant, to the Trustee, and shall effect delivery of such 2070 Bonds
by causing the participant to transfer such participant’s interest in the 2070 Bonds, on the Depository’s records,
to the Trustee. The requirement for physical delivery of 2070 Bonds in connection with a repayment of the 2070 Bonds at the option
of a beneficial owner will be deemed satisfied when the ownership rights in the 2070 Bonds are transferred by participants on the
Depository’s records and followed by a book-entry credit of 2070 Bonds to the Trustee’s account at the Depository.

 

In order for a 2070 Bond
not held in book-entry form to be repaid at the option of a holder, the Trustee must receive, at least 30 days but not more than
60 days before the applicable repayment date:

 

	 	(1)	the 2070 Bond with the form entitled “Option to Elect Repayment” in the 2070 Bond duly completed; or
	 	 	 
	 	(2)	a facsimile transmission or a letter from a member of a national securities exchange or a member of the Financial Industry Regulatory Authority, Inc. or a commercial bank or trust company in the United States, which must set forth:

 

	 	 	•	the name of the holder of the 2070 Bond;
	 	 	 	 
	 	 	•	the principal amount of the 2070 Bond;
	 	 	 	 
	 	 	•	the principal amount of the 2070 Bond to be repaid;

 

    	 	14	 

     

    

 

•       the
certificate number or a description of the tenor and terms of the 2070 Bond; and

 

•       a
statement that the option to elect repayment is being exercised and a guarantee that the 2070 Bond to be repaid, together with
the duly completed form entitled “Option to Elect Repayment” in the 2070 Bond, will be received by the Trustee not
later than the fifth Business Day after the date of that facsimile transmission or letter.

 

The repayment option
may be exercised by the holder of a 2070 Bond for less than the entire principal amount of the 2070 Bond, but, in that event, the
principal amount of the 2070 Bond remaining outstanding after repayment must be in an authorized denomination.

 

If a Tax Event occurs,
the Company will have the right to shorten the Stated Maturity of the 2070 Bonds, without the consent of the holders of the 2070
Bonds:

 

•       to the minimum
extent required, in the opinion of nationally recognized independent tax counsel, so that, after shortening the Stated Maturity,
interest paid on the 2070 Bonds will be deductible for U.S. federal income tax purposes; or

 

•       if that counsel
cannot opine definitively as to such a minimum period, the minimum extent so required to maintain the Company’s interest
deduction,

 

in each case, to the
extent deductible under current law, as determined in good faith by the Company’s board of directors, after receipt of an
opinion of that counsel regarding the applicable legal standards. In that case, the amount payable on the 2070 Bonds on that new
maturity date will be equal to 100% of the principal amount of the 2070 Bonds, together with accrued and unpaid interest thereon,
if any, to, but not including, that new maturity date. If the Company elects to exercise its right to shorten the maturity of the
2070 Bonds when a Tax Event occurs, the Company will give notice to each holder of the 2070 Bonds not more than 60 days after the
occurrence of the Tax Event, stating the new maturity date of the 2070 Bonds. If the 2070 Bonds are solely registered in the name
of Cede & Co. and traded through the Depository, then such notice will be delivered to the Depository and transmitted by the
Depository in accordance with its practices.

 

“Tax Event”
means that, and shall be deemed to have occurred when, the Company shall have received an opinion of nationally recognized independent
tax counsel to the effect that, as a result of:

 

•      any amendment
to, clarification of or change (including any announced prospective amendment, clarification or change) in any law, or any regulation
thereunder, of the United States;

 

•      any judicial
decision, official administrative pronouncement, ruling, regulatory procedure, regulation, notice or announcement, including any
notice or announcement of intent to adopt or promulgate any ruling, regulatory procedure or regulation (any of the foregoing, an
 “Administrative or Judicial Action”); or

 

    	 	15	 

     

    

 

•      any amendment
to, clarification of or change in any official position with respect to, or any interpretation of, an Administrative or Judicial
Action or a law or regulation of the United States that differs from the previously generally accepted position or interpretation,

 

in each case, occurring
on or after May 8, 2020, there is more than an insubstantial increase in the risk that interest paid by the Company on the 2070
Bonds is not, or will not be, deductible, in whole or in part, by the Company for U.S. federal income tax purposes.

 

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 2070 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.

 

    	 	16	 

     

    

 

OPTION TO ELECT REPAYMENT

 

With respect to First Mortgage Bond

Floating Rate Series Due 2070

of Consumers Energy Company (the “Company”)

 

If you elect to have this Bond purchased
by the Company pursuant to the terms of the Bond,

 

• check this box:  ̈;
and

 

• state the principal amount of this
Bond: $____________.

 

If you want to elect to have only part of
this Bond purchased by the Company pursuant to the terms of the Bond,

 

• check this box:  ̈;

 

• state the principal amount of this
Bond to be purchased (must be in denominations of $1,000 or an integral multiple of $1,000 in excess thereof): $____________; and

 

• state the principal amount of this
Bond remaining after such repurchase (must be in denominations of $1,000 or an integral multiple of $1,000 in excess thereof):
$____________.

 

	Date:                                            	By:	 
	 	Name:	 
	 	Title:	 
	Signature Guarantee:                                                	 	 

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the registrar of the Bonds, which requirements include membership or participation
in the Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by such registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.

 

Please print name and address of registered
holder:

 

Name: ____________________

 

Social Security or other Taxpayer Identification
Number, if any: ____________________

 

Address: ____________________________________________________________

 

    	 	17	 

     

    

 

{END OF FORM OF REGISTERED BOND OF THE 2070
BONDS}

 

- - - - - - - - - - - - - - -

 

 

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 $134,349,000 principal amount of the 2070
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 15 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.

 

    	 	18	 

     

    

 

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 “2070 Bonds” or the “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 2070 Bonds shall be issued in the aggregate principal amount of $134,349,000,
shall mature on May 20, 2070 (subject to the right of the Company to shorten such maturity upon a Tax Event as provided in
Section 7 hereof, the “Stated Maturity”) and shall be issued only as registered bonds without coupons in
denominations of $1,000 and any integral multiple of $1,000 in excess thereof. The serial numbers of the 2070 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 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 2070 Bonds, without limitation as to amount (except as provided in the Indenture), and without the
consent of the holders of the then outstanding 2070 Bonds, but with the same terms as such outstanding 2070 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 2070 Bonds would
constitute a single series with such outstanding 2070 Bonds.

 

    	 	19	 

     

    

 

SECTION 2. The 2070 Bonds
shall bear interest quarterly at a variable interest rate described herein (the “Interest Rate”), which shall be equal
to the Three-Month LIBOR Rate (as defined in this Section 2) minus 30 basis points (0.30%) (negative 0.30%, the “Margin”),
subject to the provisions (including, for the avoidance of doubt, the benchmark transition provisions (as defined in this Section
2)) set forth below, reset quarterly, provided that the Interest Rate shall not be less than 0.00%. The Interest Rate for the period
from May 20, 2020 to, but excluding, August 20, 2020 was determined in accordance with the provisions set forth below on May 18,
2020. The Interest Rate for each subsequent interest period shall be reset quarterly on the related LIBOR Rate Reset Date (as defined
in this Section 2). The Interest Rate in effect on any LIBOR Rate Reset Date will be the applicable Interest Rate as reset on that
date, and the Interest Rate applicable to any other day will be the Interest Rate as reset on the immediately preceding LIBOR Rate
Reset Date (or, in the case of any day preceding the first LIBOR Rate Reset Date, the Interest Rate that was determined in accordance
with the provisions set forth below on May 18, 2020). The Interest Rate for any interest period will at no time be higher than
the maximum rate then permitted by applicable law.

 

If any LIBOR Rate Reset
Date falls on a day that is not a Business Day (as defined in Section 13), the LIBOR Rate Reset Date will be postponed to the next
day that is a Business Day, except that if that Business Day is in the next succeeding calendar month, the LIBOR Rate Reset Date
shall be the immediately preceding Business Day.

 

“Calculation Agent” means a banking
institution or trust company appointed by the Company to act as calculation agent, which initially shall be The Bank of New York
Mellon.

 

“LIBOR Business Day” means any
day on which dealings in deposits in U.S. dollars are transacted in the London Inter-Bank Market.

 

“LIBOR Interest Determination Date”
means (i) the second LIBOR Business Day preceding each LIBOR Rate Reset Date or (ii) May 18, 2020 in the case of the initial interest
period.

 

“LIBOR Rate Reset Date” means,
subject to the above paragraph immediately preceding the definition of “Calculation Agent,” the February 20, May 20,
August 20 and November 20 of each year continuing until the Stated Maturity, commencing on August 20, 2020.

 

“Three-Month LIBOR
Rate” means the rate determined in accordance with the following provisions:

 

(1)   On
the related LIBOR Interest Determination Date, the Calculation Agent will determine the Three-Month LIBOR Rate, which will be
the rate for deposits in U.S. dollars having an index maturity of three months that appears on the Bloomberg L.P. page
 “BBAM” (or on such other page as may replace the Bloomberg L.P. page “BBAM” on that service), or, if
on such interest determination date, the three-month LIBOR does not appear or is not available on the designated Bloomberg
L.P. page “BBAM” (or on such other page as may replace the Bloomberg L.P. page “BBAM” on that
service), the Reuters Page LIBOR01 (or such other page as may replace the Reuters Page LIBOR01 on that service), as of 11:00
a.m., London time, on the LIBOR Interest Determination Date.

 

    	 	20	 

     

    

 

(2)  
If the Three-Month LIBOR Rate cannot be determined as described in clause (1) above on the LIBOR Interest Determination
Date, the Calculation Agent will request the principal London offices of four major reference banks in the London Inter-Bank Market
selected by the Company to provide the Calculation Agent with their offered quotations for deposits in U.S. dollars for the period
of three months, beginning on the applicable LIBOR Rate Reset Date, to prime banks in the London Inter-Bank Market at approximately
11:00 a.m., London time, on that LIBOR Interest Determination Date and in a principal amount of not less than $1,000,000. If at
least two quotations are provided, then the Three-Month LIBOR Rate will be the average of those quotations. If fewer than two quotations
are provided, then the Three-Month LIBOR Rate will be the average of the rates quoted at approximately 11:00 a.m., New York City
time, on the LIBOR Interest Determination Date by three major banks (which may include affiliates of the Underwriters) in New York
City selected by the Company for loans in U.S. dollars to leading European banks, having a three-month maturity and in a principal
amount of not less than $1,000,000. If the banks selected by the Company are not providing quotations in the manner described by
this clause (2), the rate for the quarterly interest period following the LIBOR Interest Determination Date will be the rate already
in effect on that LIBOR Interest Determination Date.

 

Notwithstanding clause
(1) and clause (2) in the preceding paragraph, if the Company (or its Designee (as defined in this Section 2)) determines on or
prior to the relevant LIBOR Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement
Date (each as defined in this Section 2) have occurred with respect to the Three-Month LIBOR Rate (or the then-current Benchmark,
as applicable), then the provisions set forth below under “Effect of Benchmark Transition Event”, which are referred
to herein as the “benchmark transition provisions”, shall thereafter apply to all determinations of the rate of interest
payable on the Bonds. In accordance with the benchmark transition provisions, after a Benchmark Transition Event and its related
Benchmark Replacement Date have occurred, the amount of interest that shall be payable for each interest period shall be an annual
rate equal to the sum of the Benchmark Replacement and the Margin. However, if the Company (or its Designee) determines that a
Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the then-current Benchmark,
but for any reason the Benchmark Replacement has not been determined as of the relevant LIBOR Interest Determination Date, the
Interest Rate for the applicable interest period shall be equal to the Interest Rate for the immediately preceding interest period,
as determined by the Company (or its Designee).

 

Effect of Benchmark Transition Event

 

If the Company (or its Designee) determines
that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time (as defined
in this Section 2) in respect of any determination of the Benchmark on any date, the Benchmark Replacement shall replace the then-current
Benchmark for all purposes relating to the Bonds in respect of such determination on such date and all determinations on all subsequent
dates.

 

    	 	21	 

     

    

 

In connection with the implementation of
a Benchmark Replacement, the Company (or its Designee) shall have the right to make Benchmark Replacement Conforming Changes (as
defined in this Section 2) from time to time.

 

Any determination, decision or election
that may be made by the Company (or its Designee) pursuant to this subsection “Effect of Benchmark Transition Event”,
including any determination with respect to tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance
or date and any decision to take or refrain from taking any action or any selection, shall be conclusive and binding absent manifest
error, shall be made in the Company’s (or its Designee’s) sole discretion, and, notwithstanding anything to the contrary
in the documentation relating to the Bonds, shall become effective without consent from the holders of the Bonds or any other party.
Neither the Trustee nor the Calculation Agent shall have any liability for any determination made by or on behalf of the Company
or its Designee in connection with a Benchmark Transition Event or a Benchmark Replacement.

 

“Benchmark”
means, initially, the Three-Month LIBOR Rate; provided, that if a Benchmark Transition Event and its related Benchmark Replacement
Date have occurred with respect to the Three-Month LIBOR Rate or any other then-current Benchmark, then “Benchmark”
means the applicable Benchmark Replacement.

 

“Benchmark
Replacement” means the Interpolated Benchmark (as defined in this Section 2) with respect to the then-current Benchmark,
plus the Benchmark Replacement Adjustment (as defined in this Section 2) for such Benchmark; provided, that if the Company (or
its Designee) cannot determine the Interpolated Benchmark as of the Benchmark Replacement Date, then “Benchmark Replacement”
means the first alternative set forth in the order below that can be determined by the Company (or its Designee) as of the Benchmark
Replacement Date:

 

(1)     
the sum of (a) Term SOFR (as defined in this Section 2) and (b) the Benchmark Replacement Adjustment;

 

(2)    
the sum of (a) Compounded SOFR (as defined in this Section 2) and (b) the Benchmark Replacement Adjustment;

 

(3)    
the sum of (a) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body (as
defined in this Section 2) as the replacement for the then-current Benchmark for the applicable Corresponding Tenor (as defined
in this Section 2) and (b) the Benchmark Replacement Adjustment;

 

(4)    
the sum of (a) the ISDA Fallback Rate (as defined in this Section 2) and (b) the Benchmark Replacement Adjustment; and

 

(5)    
the sum of (a) the alternate rate of interest that has been selected by the Company (or its Designee) as the replacement
for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of
interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (b) the
Benchmark Replacement Adjustment.

 

    	 	22	 

     

    

 

“Benchmark Replacement
Adjustment” means the first alternative set forth in the order below that can be determined by the Company (or its Designee)
as of the Benchmark Replacement Date:

 

(1)     
the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative
value or zero), that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark
Replacement (as defined in this Section 2);

 

(2)    
if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment
(as defined in this Section 2); and

 

(3)    
the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Company (or its
Designee) giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread
adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar
denominated floating rate notes at such time.

 

The Benchmark Replacement Adjustment shall
not include the Margin, and the Margin shall be applied to the Benchmark Replacement to determine the interest payable on the Bonds.

 

“Benchmark Replacement
Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes
(including changes to the definition of  “interest period”, timing and frequency of determining rates and making
payments of interest, rounding of amounts or tenor, and other administrative matters) that the Company (or its Designee) decides
may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice
(or, if the Company (or its Designee) decides that adoption of any portion of such market practice is not administratively feasible
or if the Company (or its Designee) determines that no market practice for use of the Benchmark Replacement exists, in such other
manner as the Company (or its Designee) determines is reasonably necessary).

 

“Benchmark Replacement
Date” means the earlier to occur of the following events with respect to the then-current Benchmark:

 

(1)     
in the case of clause (1) or clause (2) of the definition of “Benchmark Transition Event”, the later of
(a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator
of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

 

(2)    
in the case of clause (3) of the definition of “Benchmark Transition Event”, the date of the public statement
or publication of information referenced therein.

 

For the
avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the
Reference Time in respect of any determination, the Benchmark Replacement Date shall be deemed to have occurred prior to the Reference
Time for such determination.

 

    	 	23	 

     

    

 

“Benchmark Transition
Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

 

(1)     
a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such
administrator has ceased or shall cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such
statement or publication, there is no successor administrator that shall continue to provide the Benchmark;

 

(2)     
a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the
central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark,
a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency
or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased
or shall cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication,
there is no successor administrator that shall continue to provide the Benchmark; or

 

(3)     
a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing
that the Benchmark is no longer representative.

 

“Compounded SOFR”
means the compounded average of SOFRs (as defined in this Section 2) for the applicable Corresponding Tenor, with the rate, or
methodology for this rate, and conventions for this rate being established by the Company (or its Designee) in accordance with:

 

(1)     
the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental
Body for determining Compounded SOFR; provided that:

 

(2)     
if, and to the extent that, the Company (or its Designee) determines that Compounded SOFR cannot be determined in accordance
with clause (1) above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the
Company (or its Designee) giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating
rate notes at such time.

 

For the
avoidance of doubt, the calculation of Compounded SOFR shall exclude the Benchmark Replacement Adjustment and the Margin.

 

“Corresponding
Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding
business day adjustment) as the applicable tenor for the then-current Benchmark.

 

“Designee”
means an independent financial advisor or any other designee of the Company.

 

    	 	24	 

     

    

 

“Federal Reserve
Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source.

 

“Interpolated Benchmark”
with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear basis between
(i) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding Tenor and
(ii) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding Tenor.

 

“ISDA Definitions”
means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto,
as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from
time to time.

 

“ISDA Fallback
Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives
transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to
the Benchmark for the applicable tenor.

 

“ISDA Fallback
Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon
the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA
Fallback Adjustment.

 

“Reference Time”
with respect to any determination of the Benchmark means (i) if the Benchmark is the Three-Month LIBOR Rate, 11:00 a.m., London
time, on the LIBOR Interest Determination Date, and (ii) if the Benchmark is not the Three-Month LIBOR Rate, the time determined
by the Company (or its Designee) in accordance with the Benchmark Replacement Conforming Changes.

 

“Relevant Governmental
Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or
convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“SOFR” with
respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as
the administrator of the benchmark (or a successor administrator), on the Federal Reserve Bank of New York’s Website.

 

“Term SOFR”
means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

“Unadjusted Benchmark
Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

All percentages
resulting from any calculation of any Interest Rate for the 2070 Bonds will be rounded, if necessary, to the nearest one
hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 3.876545% (or
0.03876545) being rounded to 3.87655% (or 0.0387655)), and all dollar amounts used in or resulting from such calculations
will be rounded to the nearest cent (with one-half cent being rounded upwards). Any percentage resulting from any calculation
of any Interest Rate for the Bonds less than 0.00% will be deemed to be 0.00% (or 0.0000).

 

    	 	25	 

     

    

 

Absent willful misconduct,
bad faith or manifest error, the calculation of the applicable Interest Rate for each interest period by the Calculation Agent
or, in certain circumstances described herein, by the Company or its Designee will be final and binding on the Company, the Trustee,
the Calculation Agent and holders of the 2070 Bonds. The holders of the 2070 Bonds may obtain the Interest Rate for the current
and preceding interest periods by writing the Calculation Agent at The Bank of New York Mellon, Attention: Corporate Trust Administration,
240 Greenwich Street, New York, New York 10286, or any successor appointed by the Company.

 

In no event shall the
Calculation Agent be responsible for determining any substitute for the Three-Month LIBOR Rate or for making any adjustments to
any alternative benchmark or spread thereon, the business day convention, interest determination dates or any other relevant methodology
for calculating any such substitute or successor benchmark. In connection with the foregoing, the Calculation Agent shall be entitled
to conclusively rely on any determinations made by the Company or its Designee and shall have no liability for such actions taken
at the direction of the Company.

 

The Calculation Agent
shall, as soon as practicable after 11:00 a.m., London time, on each LIBOR Interest Determination Date, determine the Interest
Rate and the Company will calculate the amount of interest payable on the 2070 Bonds in respect of the applicable interest period
(the “Interest Amount”). The Interest Amount shall be calculated by multiplying the Interest Rate for that interest
period by a fraction, the numerator of which will be the actual number of days elapsed during that interest period (determined
by including the first day of the interest period and excluding the last day of the interest period), and the denominator of which
will be 360, and by multiplying the result by the aggregate principal amount of the 2070 Bonds. The determination of the Interest
Amount by the Company will (in the absence of willful misconduct, bad faith or manifest error) be final, conclusive and binding
on all concerned. None of the Trustee, the Calculation Agent or the Company (or any of their respective officers, directors, agents,
beneficiaries, employees or affiliates) shall have any liability to any person for (i) the selection of the reference banks or
the major banks or (ii) failure of the reference banks or the major banks to provide quotations to the Calculation Agent. Promptly
upon the determination of the Interest Rate and the calculation of the Interest Amount, the Calculation Agent and the Company,
respectively, will notify the Trustee of such Interest Rate and Interest Amount.

 

SECTION 3.

 

SECTION 3.01 Form of Bonds.

 

The 2070 Bonds
shall 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 2070 Bond hereinbefore set forth endorsed thereon
(a “Global Bond”), which shall be deposited on behalf of the purchasers 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 in this Section 3) 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.

 

    	 	26	 

     

    

 

The Company shall execute
and the Trustee shall, in the case of each of the 2070 Bonds in accordance with this Section 3.01, authenticate and deliver initially
one or more Global Bonds for the 2070 Bonds which (a) shall be 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.

 

    	 	27	 

     

    

 

(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.

 

(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.

 

    	 	28	 

     

    

 

(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 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 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. Any portion of a Global Bond transferred pursuant to this Section
3.03 shall be executed, authenticated and delivered only in denominations of $1,000 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 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 or portions of the Bonds represented by one or
more global securities and, in that event, will issue individual Bonds in exchange for the global security or securities representing
such Bonds. Further, if the Company so specifies with respect to the Bonds, an owner of a beneficial interest in a global security
representing the Bonds may, on terms acceptable to the Company and the depositary for the global security, receive individual Bonds
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 represented by the global security equal in principal amount to the beneficial
interest, and to have the Bonds registered in its name. Bonds so issued in definitive form will be issued as registered Bonds in
denominations of $1,000 and integral multiples of $1,000.

 

    	 	29	 

     

    

 

SECTION 4. Any or
all of the 2070 Bonds may be redeemed by the Company at its option, in whole or in part, at any time and from time to time on
or after May 20, 2050 and prior to maturity, in amounts of $1,000 or any integral multiple of $1,000 in excess thereof. The
redemption price for any such 2070 Bonds being redeemed on any redemption date shall be equal to the applicable percentage of
the principal amount of such 2070 Bonds being redeemed set forth in the following table, plus accrued and unpaid interest, if
any, on such 2070 Bonds being redeemed to, but not including, the redemption date:

 

	Redemption Date	 	Percentage	 
	May 20, 2050 to November 19, 2050	 	 	105.00	%
	November 20, 2050 to May 19, 2051	 	 	105.00	%
	May 20, 2051 to November 19, 2051	 	 	104.50	%
	November 20, 2051 to May 19, 2052	 	 	104.50	%
	May 20, 2052 to November 19, 2052	 	 	104.00	%
	November 20, 2052 to May 19, 2053	 	 	104.00	%
	May 20, 2053 to November 19, 2053	 	 	103.50	%
	November 20, 2053 to May 19, 2054	 	 	103.50	%
	May 20, 2054 to November 19, 2054	 	 	103.00	%
	November 20, 2054 to May 19, 2055	 	 	103.00	%
	May 20, 2055 to November 19, 2055	 	 	102.50	%
	November 20, 2055 to May 19, 2056	 	 	102.50	%
	May 20, 2056 to November 19, 2056	 	 	102.00	%
	November 20, 2056 to May 19, 2057	 	 	102.00	%
	May 20, 2057 to November 19, 2057	 	 	101.50	%
	November 20, 2057 to May 19, 2058	 	 	101.50	%
	May 20, 2058 to November 19, 2058	 	 	101.00	%
	November 20, 2058 to May 19, 2059	 	 	101.00	%
	May 20, 2059 to November 19, 2059	 	 	100.50	%
	November 20, 2059 to May 19, 2060	 	 	100.50	%
	May 20, 2060 and thereafter	 	 	100.00	%

 

If less than all of the
2070 Bonds are to be redeemed and (i) the 2700 Bonds are in global form, the interests in the 2070 Bonds to be redeemed shall be
selected for redemption by the Depository, in accordance with the Depository’s standard procedures therefor, or (ii) the
2070 Bonds are in definitive form, the Trustee shall select the 2070 Bonds to be redeemed by lot. 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 2070 Bonds to be
redeemed (which, as long as the 2070 Bonds are held in the book-entry only system, will be the Depository (or its 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 2070 Bonds as to which there shall have been no such failure or defect. If, at the time a notice of redemption
is given, the moneys to fund the redemption price are not on deposit with the Trustee, then, if such notice so provides, the redemption
shall be subject to the receipt of the moneys to fund the redemption price on or before the relevant redemption date and such notice
of redemption shall be of no force and effect unless such moneys are so received. On and after the date fixed for redemption (unless
the Company shall default in the payment of the 2070 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 2070 Bonds or the
portions thereof 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.

 

    	 	30	 

     

    

 

SECTION 6. The 2070 Bonds
are repayable at the option of the holder of such 2070 Bonds, in whole or in part, on the repayment dates and at the repayment
prices (in each case expressed as a percentage of the principal amount of such 2070 Bonds being repaid) set forth in the following
table, and on May 20 of every second year thereafter until May 20, 2067 (i.e. commencing on May 20, 2033, through and including
May 20, 2067), at 100% of the principal amount of such 2070 Bonds being repaid, plus, in each case, accrued and unpaid interest,
if any, on such 2070 Bonds being repaid to, but not including, the repayment date:

 

	Repayment Date	 	Price	 
	May 20, 2021	 	 	98.00	%
	November 20, 2021	 	 	98.00	%
	May 20, 2022	 	 	98.00	%
	November 20, 2022	 	 	98.00	%
	May 20, 2023	 	 	98.00	%
	November 20, 2023	 	 	98.00	%
	May 20, 2024	 	 	98.00	%
	November 20, 2024	 	 	98.00	%
	May 20, 2025	 	 	98.00	%
	November 20, 2025	 	 	99.00	%
	May 20, 2026	 	 	99.00	%
	November 20, 2026	 	 	99.00	%
	May 20, 2027	 	 	99.00	%
	November 20, 2027	 	 	99.00	%
	May 20, 2028	 	 	99.00	%
	November 20, 2028	 	 	99.00	%
	May 20, 2029	 	 	99.00	%
	November 20, 2029	 	 	99.00	%
	May 20, 2030	 	 	99.00	%
	November 20, 2030	 	 	99.00	%
	May 20, 2031	 	 	100.00	%

 

 

A beneficial owner of
a 2070 Bond held in book-entry form shall give notice, at least 30 days but not more than 60 days before the applicable repayment
date, to elect to have its 2070 Bonds repaid, through its participant, to the Trustee, and shall effect delivery of such 2070 Bonds
by causing the participant to transfer such participant’s interest in the 2070 Bonds, on the Depository’s records,
to the Trustee. The requirement for physical delivery of 2070 Bonds in connection with a repayment of the 2070 Bonds at the option
of a beneficial owner will be deemed satisfied when the ownership rights in the 2070 Bonds are transferred by participants on the
Depository’s records and followed by a book-entry credit of 2070 Bonds to the Trustee’s account at the Depository.

 

In order for a 2070 Bond
not held in book-entry form to be repaid at the option of a holder, the Trustee must receive, at least 30 days but not more than
60 days before the applicable repayment date:

 

	 	(1)	
the 2070 Bond with the form entitled “Option to Elect Repayment” in the 2070 Bond duly completed; or
	 	 	 
		(2)	a facsimile transmission or a letter from a member of a national securities exchange or a member
of the Financial Industry Regulatory Authority, Inc. or a commercial bank or trust company in the United States, which must set
forth:

 

•      the name of
the holder of the 2070 Bond;

 

    	 	31	 

     

    

 

•      the principal
amount of the 2070 Bond;

 

•      the principal
amount of the 2070 Bond to be repaid;

 

•      the
certificate number or a description of the tenor and terms of the 2070 Bond; and

 

•      a
statement that the option to elect repayment is being exercised and a guarantee that the 2070 Bond to be repaid, together with
the duly completed form entitled “Option to Elect Repayment” in the 2070 Bond, will be received by the Trustee not
later than the fifth Business Day after the date of that facsimile transmission or letter.

 

The repayment option
may be exercised by the holder of a 2070 Bond for less than the entire principal amount of the 2070 Bond, but, in that event, the
principal amount of the 2070 Bond remaining outstanding after repayment must be in an authorized denomination.

 

SECTION 7. If a Tax Event
occurs, the Company will have the right to shorten the Stated Maturity of the 2070 Bonds, without the consent of the holders of
the 2070 Bonds:

 

•      to the minimum
extent required, in the opinion of nationally recognized independent tax counsel, so that, after shortening the Stated Maturity,
interest paid on the 2070 Bonds will be deductible for U.S. federal income tax purposes; or

 

•      if that counsel
cannot opine definitively as to such a minimum period, the minimum extent so required to maintain the Company’s interest
deduction,

 

in each case, to the
extent deductible under current law, as determined in good faith by the Company’s board of directors, after receipt of an
opinion of that counsel regarding the applicable legal standards. In that case, the amount payable on the 2070 Bonds on that new
maturity date will be equal to 100% of the principal amount of the 2070 Bonds, together with accrued and unpaid interest thereon,
if any, to, but not including, that new maturity date. If the Company elects to exercise its right to shorten the maturity of the
2070 Bonds when a Tax Event occurs, the Company will give notice to each holder of the 2070 Bonds not more than 60 days after the
occurrence of the Tax Event, stating the new maturity date of the 2070 Bonds. If the 2070 Bonds are solely registered in the name
of Cede & Co. and traded through the Depository, then such notice will be delivered to the Depository and transmitted by the
Depository in accordance with its practices.

 

“Tax Event”
means that, and shall be deemed to have occurred when, the Company shall have received an opinion of nationally recognized independent
tax counsel to the effect that, as a result of:

 

•      any amendment
to, clarification of or change (including any announced prospective amendment, clarification or change) in any law, or any regulation
thereunder, of the United States;

 

•      any
judicial decision, official administrative pronouncement, ruling, regulatory procedure, regulation, notice or announcement,
including any notice or announcement of intent to adopt or promulgate any ruling, regulatory procedure or regulation (any of
the foregoing, an “Administrative or Judicial Action”); or

 

    	 	32	 

     

    

 

•      any amendment
to, clarification of or change in any official position with respect to, or any interpretation of, an Administrative or Judicial
Action or a law or regulation of the United States that differs from the previously generally accepted position or interpretation,

 

in each case, occurring
on or after May 8, 2020, there is more than an insubstantial increase in the risk that interest paid by the Company on the 2070
Bonds is not, or will not be, deductible, in whole or in part, by the Company for U.S. federal income tax purposes.

 

SECTION 8. 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 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.

 

    	 	33	 

     

    

 

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

 

    	 	34	 

     

    

 

SECTION 10. 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 11. 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 12. 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 13. In any case
where any interest payment date, redemption date, repayment date or maturity date of any 2070 Bond will not be a Business Day,
then payment of interest or principal (and premium, if any) need not be made on such date, but may be made on the next day that
is a Business Day with the same force and effect as if made on the interest payment date, redemption date, repayment date or maturity
date, and no interest shall accrue on the amount so payable for the period from and after such interest payment date, redemption
date, repayment date or maturity date, as the case may be, to such Business Day; provided, however, that if such next day that
is a Business Day in respect of any such interest payment date (but not in respect of any such redemption date, repayment date
or maturity date) is in the next succeeding calendar month, then such interest payment date shall be the immediately preceding
Business Day. 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 day that is a Business Day with the same force and effect as if made on the date fixed for such notice. “Business
Day” means, with respect to Sections 2 and 6 and this Section 13, 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.

 

SECTION 14. This Supplemental
Indenture and the 2070 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 15. 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.

 

    	 	35	 

     

    

 

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 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.

 

    	 	36	 

     

    

 

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, 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.

 

    	 	37	 

     

    

 

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 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.

 

    	 	38	 

     

    

 

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 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.

 

    	 	39	 

     

    

 

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.

 

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.

 

    	 	40	 

     

    

 

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.

 

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.)

 

    	 	41	 

     

    

 

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.

 

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.

 

    	 	42	 

     

    

 

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.

 

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.

 

    	 	43	 

     

    

 

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.

 

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.

 

    	 	44	 

     

    

 

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 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.

 

    	 	45	 

     

    

 

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.

 

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.

 

    	 	46	 

     

    

 

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 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.

 

    	 	47	 

     

    

 

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.

 

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.

 

    	 	48	 

     

    

 

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 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.

 

    	 	49	 

     

    

 

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 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.

 

    	 	50	 

     

    

 

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.

 

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.

 

    	 	51	 

     

    

 

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.

 

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.

 

    	 	52	 

     

    

 

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.

 

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.

 

    	 	53	 

     

    

 

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 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.

 

    	 	54	 

     

    

 

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 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 16. 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).

 

    	 	55	 

     

    

 

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.

 

	 	CONSUMERS ENERGY COMPANY
	 	 	 
	 	By:	/s/ Srikanth Maddipati
	 	 	Srikanth Maddipati
	 	 	Vice President and Treasurer

 

STATE OF MICHIGAN)

ss.

COUNTY OF JACKSON)

 

The foregoing instrument
was acknowledged before me this 20th day of May 2020, 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/ Latoya S. Elvin     
	 	 	
        Latoya S. Elvin

	Attest:		Vice President
	 	 	 
	                                                           	 	 

 

STATE OF NEW JERSEY)

ss.

COUNTY OF PASSAIC)

 

The foregoing instrument
was acknowledged before me this 20th day of May 2020, 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, 2024

 

	
        Prepared by:

        Melissa M. Gleespen

        One Energy Plaza, EP12-246

        Jackson, MI 49201

         
	
        When recorded, return to:

        Consumers Energy Company

        Business Services Real Estate Dept.

        Attn: Margaret Hillman, EP11-215

        One Energy Plaza

        Jackson, MI 49201

 

    	 	S-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}]]