Document:

Exhibit 10.1

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

COMMERCIAL FILL/FINISH SERVICES AGREEMENT

 

This COMMERCIAL FILL/FINISH SERVICES AGREEMENT (the “Agreement”) is executed on the dates set forth on the signature page, and effective as of the 1st day of January, 2015 (“Effective Date”) by and between INSMED INCORPORATED, a Virginia corporation, with a place of business at 10 Finderne Avenue, Building 10, Bridgewater, NJ 08807 (“Client”), and AJINOMOTO ALTHEA, INC., a Delaware corporation, with a place of business located at 11040 Roselle Street, San Diego, CA 92121 (“Althea”).

 

WHEREAS Client and Althea previously entered into that certain Drug Product Production and Clinical Supply Agreement dated July 8, 2009, under which Althea manufactured clinical supply of drug product for Client;

 

WHEREAS Althea has the expertise and the fill/finish facility suitable for the production of Client’s product known as inhaled liposomal amikacin;

 

WHEREAS the parties now wish for Althea to perform fill/finish services for the Production of Client Product (capitalized terms defined below);

 

NOW, THEREFORE, in consideration of the premises and the undertakings, terms, conditions and covenants set forth below, the parties hereto agree as follows:

 

1.                                      DEFINITIONS.

 

1.1                               “Affiliate” of a party hereto shall mean any entity that controls or is controlled by such party, or is under common control with such party. For purposes of this definition, an entity shall be deemed to control another entity if it owns or controls, directly or indirectly, at least 50% of the voting equity of another entity (or other comparable interest for an entity other than a corporation).

 

1.2                               “Althea SOPs” shall mean Althea’s Standard Operating Procedures, which will be customized on a product specific basis, as necessary, for manufacture of Client Product.

 

1.3                               “Althea Supplied Components” shall mean Components supplied by Althea or its vendors.

 

1.4                               “Althea Supplied Equipment” shall mean any equipment owned by Althea at the Facility for use in the Production of the Client Product.

 

1.5                               “Batch” shall mean a specific quantity of Client Product mutually agreed upon between Client and Althea, and that (a) is intended to have uniform character and quality within specified limits, and (b) is Produced according to a single manufacturing order during the same cycle of manufacture.

 

1.6                               “Binding Portion” is defined in Section 3.1(a) (Binding Portion).

 

1.7                               “Cancellation” is defined in Section 3.2 (Cancellation).

 

1.8                               “Cancellation Fee” is defined in Section 3.2 (Cancellation).

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

1.9                               “Certificate of Analysis” shall mean a certificate of analysis that certifies that a Batch meets the release Specifications.

 

1.10                        “cGMP” shall mean current Good Manufacturing Practices as described by (i) 21 U.S.C. § 351(a)(2)(B) and in Parts 210 and 211 of Title 21 of the United States’ Code of Federal Regulations (“C.F.R”), (ii) the supplementary requirements for biologics set forth in Parts 600 to 680 of Title 21 of the C.F.R. (as applicable), (iii) the latest FDA and International Conference on Harmonization (ICH) guidance documents pertaining to manufacturing and quality control practice, Commission Directive 2003/94/EEC of 08 October 2003; and (iv) the EC Guide to Good Manufacturing Practice for Medicinal Licensed Products, in each case as applicable to Production, including corresponding guidance documents and any corresponding laws, rules or regulations of any applicable foreign jurisdiction, as each may be updated and amended from time to time provided that Althea shall have no obligation to Produce Client Product in compliance with any cGMP requirements other than (i)-(iv) above, except as expressly specified in the Quality Agreement.

 

1.11                        “Client Product” shall mean inhaled liposomal amikacin in finished dosage form to be Produced by Althea using the Drug Substance.

 

1.12                        “Client Supplied Components” shall mean Components supplied by Client or its vendors, including any Drug Substance.

 

1.13                        “Client Supplied Equipment” shall mean any equipment owned by Client at the Facility for use in the Production of the Client Product.

 

1.14                        “Components” shall mean all components used by Althea in Production of Client Product under this Agreement.

 

1.15                        “Confidential Information” shall have the meaning set forth in Section 9.1.

 

1.16                        “Defect” is defined in Section 4.1.  Client Product that is subject to a Defect may be referred to herein as “Defective”.

 

1.17                        “Drug Substance” shall mean the drug substance to be supplied by Client and processed into Client Product in accordance with the Quote.

 

1.18                        “Facility” shall mean Althea’s facilities located at *** and ***.

 

1.19                        “FDA” shall mean the United States Food and Drug Administration or any successor entity thereto.

 

1.20                        “Forecast” is defined in Section 3.1 (Forecast).

 

1.21                        “Firm Portion” is defined in Section 3.1(b) (Firm Portion).

 

1.22                        “Invention” shall mean any creative work, invention, innovation, improvement, development, discovery, trade secret, method, know-how, process, technique or the like, whether or not written or otherwise fixed in any form or medium, regardless of the media on which contained, and whether or not patentable or copyrightable.

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

1.23                        “Intellectual Property” shall mean all intellectual property rights, privileges and priorities provided under applicable international, national, federal, state or local law, rule, regulation, statute, ordinance, order, judgment, decree, permit, franchise, license, or other government restriction or requirement of any kind relating to intellectual property, whether registered or unregistered, in any country, including:  (a) all (i) patents and patent applications (including any patent that in the future may issue in connection therewith and all divisions, continuations, continuations-in-part, extensions, additions, registrations, confirmations, reexaminations, supplementary protection certificates, renewals or reissues thereto or thereof), (ii) copyrights and copyrightable works, including reports, software, databases and related items, and (iii) trademarks, service marks, trade names, brand names, product names, corporate names, logos and trade dress, the goodwill of any business symbolized thereby, and all common-law rights relating thereto; and (b) all registrations, applications, recordings, rights of enforcement, rights of recovery based on past infringement and any and all claims of action related thereto and licenses or other similar agreements related to the foregoing.

 

1.24                        “Labeling” shall mean all labels and other written, printed, or graphic matter upon: (i) Client Product or any container, carton, or wrapper utilized with Client Product or (ii) any written material accompanying Client Product.

 

1.25                        “Master Batch Record” or “MBR” shall mean the document approved and mutually executed in writing by both parties, and as may be amended from time to time in accordance with this Agreement and the Quality Agreement, specifying or referencing the complete set of formal instructions agreed upon by the Parties for the Production of Client Product, including material descriptions, the formula, processing procedures, and in-process testing Specifications, Specifications and Labeling and shipping Specifications.

 

1.26                        “Production” or “Produce” shall mean all steps and activities necessary to produce Client Product to be performed by Althea as set forth in the Quote and the MBR, including, as applicable, the complex formulation, filling, packaging, inspection, Labeling, testing, quality control and release.

 

1.27                        “Purchase Price” shall mean the amount(s) to be paid by Client for Production of Client Product as set forth in Exhibit B.

 

1.28                        “Quality Agreement” shall mean that particular quality agreement entered into by the parties dated December 10, 2014, as may be amended by the parties in accordance with its terms to add Production activities.

 

1.29                        “Quote” shall mean the quotation(s) mutually executed by the parties, and made a part of this Agreement in Exhibit A describing the Production and other services to be performed hereunder, the prices therefor and the payment schedule.  Each Quote shall be substantially in the form agreed in the first such Quote.

 

1.30                        “Recall” shall mean any of the following:  (a) the removal or correction of a product that an applicable Regulatory Authority considers to be in violation of the laws it administers and against which such Regulatory Authority would initiate legal action, (b) the removal or correction of a product which involves a minor violation that would not be subject to legal action by an applicable Regulatory Authority or which involves no violation, (c) removal or

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

correction of a product that has not been marketed distributed or released for sale or use, or (iv) some other field correction or other corrective action.

 

1.31                        “Regulatory Authority” shall mean any agency or authority responsible for regulation of Client Product in the United States or any foreign regulatory jurisdiction in which Client has marketing authorization for the Client Product, provided that Althea shall have no obligation to Produce Client Product in compliance with the requirements of any Regulatory Authority other than the US FDA and the EU EMA, except to the extent expressly specified in the Quality Agreement.

 

1.32                        “Regulations” is defined in Section 5.5(a) (Regulatory Compliance).

 

1.33                        “Reimbursement Value” shall mean the actual cost paid by the Client for the applicable Client-Supplied Component(s) at the time of replacement, as evidenced by supporting documentation to be provided to Althea upon request.

 

1.34                        “Rejects” is defined in Section 4.9.

 

1.35                        “Released Executed Batch Record” shall mean the completed Batch record and associated deviation reports, investigation reports, and Certificates of Analysis created by Althea for each Batch of Client Product that is released by Althea, in the standard form described in the Quality Agreement.

 

1.36                        “Specifications” shall mean the specifications for Client Product or Components, as applicable, set forth in a writing signed by both parties.

 

1.37                        “Term” shall mean the Initial Term and any Renewal Term.

 

2.                                      PRODUCTION.

 

2.1                               Non-Exclusive.  Client hereby engages Althea on a non-exclusive basis to Produce the Client Product under the terms and conditions of this Agreement.  Nothing in this Agreement restricts Client from Producing the Product directly or engaging the services of any third party for the Production of Product.

 

2.2                               Validation. All equipment, including any Client Supplied Equipment, used in Production of Client Product and the Production process shall be validated by Althea in accordance with the validation protocol(s) and timelines described in the Quality Agreement.  Althea shall not use any equipment in Production of Client Product that has not been validated in accordance with this Section 2.2 (Validation).

 

2.3                               Master Batch Record. Althea and Client shall negotiate in good faith to draft and approve in writing a mutually-signed Master Batch Record prior to commencement of Production.  Any proposed change to the Master Batch Record shall be reviewed by the parties and shall not be implemented until approved in a mutually-signed writing by Althea and by Client. Althea shall Produce each Batch of Client Product in accordance with the Master Batch Record. Althea shall assign each Batch of Client Product a unique Batch number. Althea shall document any deviation(s) from the Master Batch Record that occur during Production of Client Product as required by cGMP in the Released Executed Batch Record for such Batch. Althea

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

shall provide Client with the Released Executed Batch Record in a form reasonably suitable for Client’s submission to the Regulatory Authorities which are specified by Client.

 

2.4                               Quality Agreement.  The parties shall comply with the terms and conditions of the Quality Agreement.  If there is any conflict between the terms and conditions of the Quality Agreement and this Agreement, then the terms and conditions of this Agreement shall govern and control.

 

2.5                               Client Supplied Components

 

(a)                                 Delivery; Use of Client Supplied Components.  Client shall use commercially reasonable efforts to deliver the Client Supplied Components to Althea, at Client’s sole cost and expense, in quantities sufficient to enable Althea to Produce and deliver the Client Product by the delivery set forth in the Purchase Order for such Client Product; provided, however, that Client’s non-provision or delay of Client Supplied Components, or defective Client-Supplied Components to Althea in accordance with this Section 2.5(a) (Delivery; Use of Client Supplied Components) shall not be considered a breach of this Agreement, but may result in non-delivery or delay of Client Product or defective Client Product at Client’s sole risk.  Delivery of Client Supplied Components shall be made *** (INCOTERMS 2010).  Althea shall store the Client Supplied Components in accordance with the requirements set forth in the Quality Agreement and the MBR.  Althea shall use the Client Supplied Components only to Produce the Client Product and for no other purpose.  Notwithstanding the foregoing, Althea agrees that upon prior written notice from Client, Althea shall commence commercially reasonable efforts to source the Components then supplied by Client (other than Drug Substance) and specified in the notice, and the parties shall amend this Section 2.5 (Client Supplied Components) to reflect such change.

 

(b)                                 Damage/Discrepancies.  Within *** (***) business days following Althea’s receipt of the Client Supplied Components, Althea shall inform Client in writing of any damage to the Client Supplied Components received that is visually obvious (e.g., damaged or punctured containers) (“Damage Notice”) or discrepancies in quantity received (“Discrepancy Notice”).  Client shall replace such damaged Client Supplied Components or provide additional Client Supplied Components to resolve such discrepancy in quantity received within *** (***) days of receipt of such Damage Notice or Discrepancy Notice.  The parties agree to negotiate in good faith to adjust any Product delivery dates that either party believes would be delayed by such damage or discrepancy in quantity received.

 

(c)                                  Analytical Testing.  Althea shall perform analytical testing on the Client Supplied Components in accordance with the Quality Agreement, and shall inform Client of any failure of the Client Supplied Components to conform to the Specifications, as set forth in the Quality Agreement.  Althea shall not be obligated to process any Client-Supplied Components that fail such testing, except upon mutual written agreement of the parties including appropriate waivers and indemnifications by Client.  Althea shall inform Client of any failure of the Client Supplied Components to conform to the Specifications promptly after discovering such failure in accordance with the Quality Agreement.  The disposition of such Client Supplied Components shall be determined in accordance with the Quality Agreement.

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

(d)                                 Lost Client-Supplied Components.  If any Client Supplied Component (other than Drug Substance which shall be subject to section 4.8) is lost, damaged or contaminated due to Althea’s negligence or willful misconduct, Althea shall, at Client’s option, (i) reimburse Client for the Reimbursement Value of such material within *** (***) days after the end of the applicable Calendar Quarter in which such loss, damage or contamination occurs, or (ii) credit Client such Reimbursement Value against future invoices for any Product owing hereunder.

 

(e)                                  Title.  As between the Parties, Client shall at all times retain title to the Client Supplied Components and the Client Supplied Equipment.  Althea shall not, as a result of Althea’s possession of the Client Supplied Components and/or Client Supplied Equipment, grant or permit the existence of any third party lien, mortgage or security interest on the Client Supplied Components and/or Client Supplied Equipment, or any portion of either and, if Althea, as a result of Althea’s possession of the Client Supplied Components and/or Client Supplied Equipment, grants or permits the existence of any third party lien, mortgage or security interest on the Client Supplied Components and/or Client Supplied Equipment or any portion thereof, then Althea shall pay all costs associated with securing the release of any such liens and other encumbrances.  Client shall at all times maintain adequate insurance covering Client Supplied Components and/or Client Supplied Equipment, and shall be responsible for the repair, maintenance and failure of Client Supplied Components and/or Client Supplied Equipment, except as the parties may otherwise agree in writing.

 

3.                                      FORECASTS, CANCELLATION, PAYMENT, RESERVATION FEE

 

3.1                               Forecast.  Within *** (***) days of the execution and delivery of this Agreement and approval of the Master Batch Record in accordance with Section 2.3 (Master Batch Record) or at least *** (***) days prior to the start of Production, whichever is earliest, Client shall provide an *** (***) month forecast of the quantities of Client Product that Client intends to order from Althea in each month (the “Forecast”), beginning with the date scheduled for commencement of Production.  The Forecast shall be rolled forward and updated by Client on or before the first day of each calendar quarter thereafter.

 

(a)                                 Binding Portion.  Upon written acceptance of the Binding Portion (defined below) by Althea within *** (***) days of its receipt, which shall not be unreasonably withheld, the first *** (***) months of each Forecast shall be binding on Client and Althea and shall obligate Althea to Produce, sell and deliver to Client and shall obligate Client to purchase, the specified quantity of Client Product, all in accordance with the terms and conditions of this Agreement (the “Binding Portion”).  Neither party may change the Binding Portion absent mutual written agreement, except as provided in sections 3.2 and 3.3 below.

 

(b)                                 Firm Portion.  Upon written acceptance of the Firm Portion by Althea within *** (***) days of its receipt, which shall not be unreasonably withheld, the second *** (***) months of each Forecast shall be binding on Client and Althea and shall obligate Althea to Produce, sell and deliver to Client the specified quantity of Product, all in accordance with the terms and conditions of this Agreement (the “Firm Portion”); provided, however, that Client shall have the right to increase or decrease the amount of Product described in the Firm Portion (“Firm Portion Period”) of such Forecast by no more than *** percent (***%) when compared to the amount of Product described in such Firm Portion Period for the prior Forecast for such

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

period.  Such change for any given period may be made only once, absent written agreement by Althea.  By way of example and not limitation, if a Forecast describes an amount of Product equaling *** (***) Batches in a period when first forecast, then Client would have the right to increase or decrease the amount of Product described in the subsequent Forecast for the same period while it is a Firm Portion Period by up to *** percent (***%), that is, up or down by *** (***) Batches in the aggregate.

 

(c)                                  Non-Binding.  The last *** (***) months of each Forecast are non-binding on both parties and not subject to any forecasting restrictions, and shall be subject to Althea’s written acceptance within *** (***) days of its receipt, not to be unreasonably withheld.

 

(d)                                 Purchase Orders.  Within *** (***) days of Althea’s acceptance of the Binding Portion, Client shall submit to Althea a purchase order for any portion of such Binding Portion that does not have an issued purchase order.  Each purchase order shall include the purchase order number for each Batch to be Produced, delivery schedule, and any other elements necessary to ensure the timely Production and delivery of Client Product (“Purchase Order”).  A Purchase Order shall only issue for the Binding Portion.

 

(e)                                  Reservation Fee.  Client shall be responsible for providing Althea with a minimum annual payments of $*** for total Batches in each calendar year of the Term (the “Reservation Fee”) so that Althea may maintain the manufacturing suite for the Client Product at the Facility.  For clarity, Batches included in the Reservation Fee and the calculations of this paragraph include all Process Validation batches, Aseptic Process Validation batches, and engineering batches.  At the end of each calendar year during the Term, Althea shall determine if Client’s payments for such calendar year exceeded the Reservation Fee and, if not, invoice Client for such Outstanding Amount (as defined below) no later than February 15. The “Outstanding Amount” is determined by calculating (i) the Reservation Fee less (ii) the total amount calculated by adding all payments made by Client for Batches (excluding without limitation Components procurement costs, project management fees and inventory management fees) received by Althea from Client during that calendar year. Client shall only be responsible for the Outstanding Amount if such amount is greater than zero. Invoices for the Outstanding Amount, if any, shall be subject to the payment terms of section 3.5.

 

3.2                               Cancellation of Fill/Finish.  Client may issue a written notice of cancellation for any Batch with any notice period and at any time prior to the actual Production of such Batch by Althea regardless of whether or not a Purchase Order was issued (“Cancellation”). “Cancellation” also includes any termination of this Agreement, other than due to Althea’s breach, and any postponement or delay of any Batch by Client other than as provided in section 3.3 below.  In the event of a Cancellation by Client of any Batch(es) or the Fill/Finish Production portion of any Batches for which a Purchase Order was issued (or should have issued in accordance with section 3.1) for the Binding Portion of the Forecast, Client shall pay Althea a fee (“Cancellation Fee”) for the Cancellation of the Fill/Finish Production based on the following:

 

	
Days Notice to Althea
    	
 
    	
 
    
	
Prior to Scheduled Delivery Date
    	
 
    	
Cancellation Fee
    
	
***
    	
 
    	
***
    
	
***
    	
 
    	
***
    
	
***
    	
 
    	
***
    
	
***
    	
 
    	
***
    

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

3.3                               Postponement.  Client may postpone the Production of any Batch (or Fill/Finish Production) of Client Product, with at least *** (***) days prior written notice to Althea, to a date within *** (***) months without payment of a Cancellation Fee, provided (i) such date is available, (ii) Althea is able, using commercially reasonable efforts, to use the vacated facilities and timeslots for other customer(s).  Such postponement without a Cancellation Fee shall only be available once in any 6 month period.

 

3.4                               Delays.  Althea shall promptly notify Client in writing if the delivery date(s) described in any Purchase Order will not be met (a “Delay”). Such notice shall include the reasons for such Delay and the proposed new schedule for the completion of Production of the Client Product described in such Purchase Order. Subject to the provisions regarding Force Majeure below and unless the parties mutually agree otherwise, the party responsible for Delays in Production shall be determined as follows:

 

(a)                                 Client is responsible for Delays caused by delivery delays of or variation from Specifications of Drug Substance or other Client Supplied Components, any Client-supplied or special-purpose equipment used in Production (except as provided in (b) below) or caused by Client’s delay in providing any payments or any information or approvals reasonably necessary to continue Production.

 

(b)                                 Althea is responsible for Delays due to its negligent or willful failure to maintain its Facility, systems or Althea Supplied Equipment, or a non-conformity with Specifications of Althea Supplied Components, or due to Althea’s failure to provide Client or its designee with reasonable access to the Client Supplied Equipment for routine maintenance, or Althea’s negligence or willful failure in any maintenance of Client-supplied or special-purpose equipment, which maintenance has been assumed by Althea by written agreement, in each case other than due to force majeure.

 

(c)                                  Althea is responsible for Delays due to its failure to follow any requirement of the Master Batch Record.

 

The price for each Batch that is Delayed for which Althea is responsible as described above in this Section 3.4 (Delays) shall be reduced by *** Dollars ($***) for each month for which such Batch is Delayed more than *** (***) days until the delivery by Althea of the Released Executed Batch Record as set forth in section 4.1  The aggregate amount of such price reduction shall not exceed *** ($***) in the aggregate for all Batches in any single Delay or series of related Delays.

 

3.5                               Invoices; Payment.

 

(a)                                 Invoices.  Althea shall issue invoices for the Purchase Price for each submitted Purchase Order in accordance with the payment schedule set forth in the Quote.

 

(b)                                 Payment.  Client shall pay all invoices by wire in accordance with the instructions below within *** (***) days of the invoice receipt.  No tax or other withholding shall be made from payments due hereunder.

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Althea’s wire instructions are as follows:

 

Beneficiary:                             Ajinomoto Althea, Inc.
 ***

 

Bank:              ***

 

SWIFT #:                                           ***
 Transit #:                                            ***
 Account #:                                    ***

 

3.6                               Default in Payment Obligations.  Any payment for undisputed invoices due under this Agreement not received by the due date shall bear interest at the lesser of (i) the maximum rate permitted by law, and (ii) ***percent (***%) per month on the outstanding balance compounded monthly, provided that interest shall apply to any disputed amounts ultimately due Althea.  In addition to all other remedies available to Althea, if Client does not pay an undisputed invoice in the time periods described in Section 3.5(b), then any prepayments or other amounts owed to or held for Client under this Agreement shall be automatically applied to invoices more than *** (***) days past due and Althea may suspend performance of this Agreement.

 

4.                                      DELIVERY AND ACCEPTANCE OF CLIENT PRODUCT.

 

4.1                               Release and Acceptance. Within *** (***) business days from the date of Althea’s determination that a Batch is free from Defects and is suitable for release to Client, Althea shall forward to Client, or Client’s designee, copies of the Released Executed Batch Record.  Within *** (***) business days after receipt by Client of the Released Executed Batch Record, Client shall review such Release Executed Batch Record and perform such other testing, inspection and review as Client deems necessary and appropriate, to confirm whether Client Product conforms to the quantity ordered, the Specifications and cGMP and notify Althea whether it accepts or rejects the Client Product and, if applicable, provide shipping instructions.  If Client does not notify Althea within such time that such Batch does not conform to the quantities, Specifications or cGMP (a “Defect”), and that it rejects such Batch, then Client shall be deemed to have accepted the Batch and waived its right to revoke acceptance.  Title and risk of loss for Client Product shall pass to Client on the earliest of: its acceptance of the Client Product, the expiration of such *** (***) day period, unless Client has rejected the Batch, or shipment of the Client Product to Client or its designee.  Client shall maintain appropriate insurance for Client-Supplied Components and Client Product for all periods in which it has title and risk of loss.

 

4.2                               Delivery; Storage.

 

(a)                                 Delivery.  Althea shall ship all released Client Product to Client or to Client’s designated consignee in accordance with Client instructions. All shipments shall be shipped *** (INCOTERMS 2010) Facility by *** or other carrier agreed in writing, at Client’s expense. All shipping instructions of Client shall be accompanied by the name and address of the recipient and the shipping date.

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

(b)                                 Exporter of Record.  Client shall be the exporter of record for any Client Product shipped out of the United States. Client shall be responsible for obtaining and paying for any licenses, clearances or other governmental authorization(s) necessary for the exportation from the United States. As between the parties Client shall be solely responsible for preparing and filing the shipper’s export declaration and any other documentation required for the export, provided that Althea shall provide Client with reasonably requested assistance.

 

(c)                                  Storage.  In the event Client has not provided shipping instructions for Client Product or requests that Althea hold such released Batch in storage, Althea shall store such Client Product under conditions that comply with the Quality Agreement and assess a storage fee for all such Client Product (if any) at the price set forth in Exhibit B or, if none, at Althea’s then current standard rates.  Storage may be at Althea’s or its qualified subcontractors’ storage facilities, provided that Althea shall be liable for the performance of such qualified subcontractors’ in performing the obligations described hereunder.  Althea shall not be obligated to store Client Product for more than *** (***) days after acceptance under Section 4.1.  If Client does not take delivery thereof within such *** (***) day period, Althea may, upon *** (***) days’ prior written notice, destroy or dispose of such Client Product in accordance with applicable regulations, at Client’s expense.

 

4.3                               Delivery Shortfalls.  Althea shall make up any shortages in the delivered Client Product as promptly as possible, and will deliver to Client a corrective action plan within *** (***) days after receipt of Client’s notification of such shortfall.  For clarity, yields are subject to variances and uncertainties, and are not guaranteed. Unexpected yields shall not be the responsibility of Althea unless due to the negligence or willful misconduct of Althea in adhering to a requirement of the MBR.

 

4.4                               ***.  Client may revoke such deemed acceptance only in the event of a *** that meets all of the following: (i) *** (ii) ***, (iii) ***  and (iv)  Client shall have provided notice to Althea within *** of first learning of any ***, and prior to the expiration date of the corresponding Batch, but in no event later than *** from the date of shipment by Althea of the corresponding Batch (each, a “***”).

 

4.5                               Notification.  If Client believes any Batch of Client Product is Defective (including without limitation, any ***), then it shall notify Althea by telephone, including a detailed explanation of the non-conformity, and shall confirm such notice in writing via overnight delivery to Althea. Upon receipt of such notice, Althea will investigate such alleged Defect, and (i) if Althea agrees such Client Product is Defective, deliver to Client a corrective action plan within *** (***) days after receipt of Client’s written notice of Defect, or (ii) if Althea disagrees with Client’s determination that the Batch of Client Product is non-conforming, Althea shall so notify Client by telephone within *** (***) days of receipt of notice of Defect and shall confirm such notice in writing by overnight delivery.  Nothing herein shall be construed to alter the deadline for a notice of acceptance or rejection of Client Product under section 4.1, unless mutually agreed in writing by the parties.

 

4.6                               Third Party Testing.  If the parties dispute whether the Batch of Client Product is Defective, samples of the Batch in dispute will be submitted to a mutually acceptable independent laboratory for testing, whose determination of Defect, and the cause thereof if Defective, shall be binding upon the parties. To the extent such laboratory finds that the Batch is

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

not Defective, Client shall pay the costs of such laboratory; however, to the extent such laboratory finds that the Batch is Defective, Althea shall pay the costs of such laboratory.

 

4.7                               Exclusive Remedy for Defective Client Product.  In the event Althea agrees, or the independent laboratory determines following Client’s rejection of a Batch, that such Batch of Client Product is Defective and such Defect is due to the negligence or willful misconduct of Althea, then Althea shall, as directed by Client, either (a) at Althea’s expense, replace such non-conforming Client Product within *** (***) days from receipt of replacement Drug Substance from Client (such Drug Substance to be at Client’s expense subject to section 4.8 below) or (b) if not already paid, cancel the invoices for such Batch and refund any materials prepayments or, or, in the event of a *** refund any payments received for the non-conforming Client Product.  For clarity and by way of example, if Client Product is Defective due to non-conforming Drug Substance or other Client Supplied Components, then Client will not be entitled to the foregoing remedies.  Except as set forth in section 4.8 and section 5.7 this paragraph sets forth Client’s sole and exclusive remedy for Defective Client Product.

 

4.8                               Cost of Replacement Drug Substance.  In the case where Client Product is Defective such that Client is entitled to remedies under Section 4.7 (Exclusive Remedy for Defective Client Product), then Althea shall file a claim under its Professional Liability policy for the lost Drug Substance (“Lost Drug Substance”). Client shall be entitled to reimbursement by Althea up to the amount of any insurance proceeds received under such policy to cover the Reimbursement Value of any Lost Drug Substance.  For clarity, Client is responsible for losses of Drug Substance not caused by the negligence of Althea or in excess of such proceeds and for maintaining its own insurance, including property insurance, in amounts adequate to cover such losses..

 

4.9                               Disposition of Rejects.  The parties agree that the default handling of Defective Client Product (“Rejects”) shall be destruction at Client’s expense, unless the rejection is due to a Defect giving rise to Client’s remedies under Section 4.7 (Exclusive Remedy for Defective Client Product), in which case such destruction shall be at Althea’s expense. No storage of Rejects by Althea shall be required unless by mutual written agreement of the parties.  Client shall notify Althea in writing prior to Althea’s destruction of Rejects of any alternative disposition instructions for Rejects.  Absent timely disposition instructions as set forth above, Althea shall dispose of Rejects in accordance with Althea’s SOPs and applicable law.

 

5.                                      COMPLIANCE.

 

5.1                               Vendor and Supplier Audit and Certification: Althea shall certify and audit all vendors and suppliers of Althea Supplied Components, and provide Client with documentation of such audit results and certifications as Client may reasonably request.

 

5.2                               Material Safety Data Sheet; Acceptable Materials.  Client shall provide Althea a material safety data sheet (“MSDS”) for Client Supplied Components (including Bulk Product) and Client Product and Althea shall conform to established safety practices and procedures set forth therein and shall store and handle Client Supplied Components (including Bulk Product) and Client Product as required by the MBR and all applicable laws and regulations.  Althea is under no obligation to produce, nor shall Client ship or cause to be shipped to Althea without specific prior written approval, any materials which: (a) contain a penicillin, cephalosporin, high-

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

potent product, DEA controlled substance or radio label, or (b) have an Occupational Exposure Limit of less than 1 μg/m3.  Althea understands and agrees that the Drug Substance may have unpredictable and unknown biological and/or chemical properties and should be used with caution and that Althea shall not use Drug Substance for testing in or treatment of humans.  Althea shall immediately notify Client of any unusual health or environmental occurrence of which it has knowledge relating to Client Product, including any claim or complaint by any employee of Althea or any of its Affiliates or third party contractors.  Althea agrees to advise Client immediately of any safety or toxicity problems of which it becomes aware regarding the Client Product.  Client shall ensure such MSDSs are promptly updated as needed.

 

5.3                               Regulatory Authority Visits.  Althea shall advise Client immediately if any Regulatory Authority visits the Facility or makes a written inquiry regarding Althea’s Production of Client Product, but in no case later than *** (***) hours after learning of such visit or inquiry.

 

5.4                               Audits.  Client shall have the right to inspect Althea Batch records and the portions of the Facility used for Production of Client Product.  Client audits shall not occur more than once per calendar year, except as set forth below, unless such additional audit(s) are for cause.  All audits shall be performed at mutually agreed upon times during normal business hours and shall not last for more than two days.  If the parties agree to audits more than one time in a calendar year or for more than two days, Client agrees to reimburse Althea for Althea’s reasonable expenses incurred in hosting the additional audit day(s) unless such audit was for cause.  All audited data that is owned by Althea will be treated as Confidential Information of Althea, and Client shall not be permitted to remove or copy such data without Althea’s prior consent.

 

5.5                               Regulatory Compliance.

 

(a)                                 Unless otherwise stated, Althea is responsible for compliance with all Federal, State and local laws and regulations as they apply generally to the Facility or generally to the Production of Client Product, provided that Althea shall have no obligation for compliance with the requirements of any non-U.S. laws or regulations, except to the extent of cGMP requirements of a Regulatory Authority or as otherwise expressly specified in the Quality Agreement (“Regulations”).  Althea shall be solely responsible for all contact with Regulatory Authorities with respect thereto, provided that Althea shall give Client a reasonable opportunity, where feasible, to comment on any correspondence with Regulatory Authorities which would reasonably be expected to have a material impact on Production of Client Product.

 

(b)                                 Client shall be responsible for compliance with all Regulations as they apply to all other aspects of the Production, including the Client Supplied Components, specific approval to manufacture Client Product at the Facility and other compliance issues specific to the manufacture of Client Product, and the use, Labeling and sale of Client Product, which responsibility shall include, without limitation, all contact with Regulatory Authorities regarding the foregoing.  Althea shall use its commercially reasonable efforts to assist Client in obtaining necessary regulatory approvals.

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

5.6                               Client Product Recalls.

 

(a)                                 Althea and Client shall maintain records necessary to permit a Recall of any of the Client Products delivered to Client or customers of Client or its Affiliates, affected voluntarily or under a threat of, or a directive by, any governmental agency.  Each party shall give immediate notice by telephone (with written confirmation) to the person identified for such notice in the Quality Agreement in the event any Client Product should be Recalled.  Client shall decide whether to initiate a Recall and shall control such Recall, and Althea shall reasonably cooperate with Client in connection with any Recall.

 

(b)                                 To the extent that a Recall results from or arises out of a *** then: ***.

 

6.                                      CHANGES IN PRODUCTION.

 

6.1                               Changes to Master Batch Records.  Each party agrees to notify the other promptly of any requested changes to the Client Product, Production, Specifications or the MBR.  Within a reasonable time after such notification, Althea shall provide an estimate of any additional fees and costs required and a time line for implementation.  No change(s) to any of the foregoing shall be effective or binding unless reduced to writing and signed by both parties.

 

6.2                               Product-Specific Changes.  If Facility, equipment, process or system changes are required of Althea as a result of requirements set forth by the FDA or in any other Regulations, and such required changes apply only to the Production and supply of one or more Client Products, then Client and Althea will review such requirements and agree in writing to the changes, and Client shall bear the reasonable costs thereof.

 

6.3                               General Changes.  If such required changes apply generally to the Client Product as well as to other products produced by Althea for itself or for third parties, then Client shall pay a pro rata amount of the reasonable cost of such required changes based upon the proportion of time that the Facility is dedicated to the Production of Client Product relative to the production of such other products.

 

6.4                               Unused Materials.  In the event of changes requested by Client or to comply with any regulatory requirement, Client shall reimburse Althea for any Althea-Supplied Components that cannot reasonably be used by Althea or returned for credit.

 

7.                                      TERM AND TERMINATION.

 

7.1                               Term.             This Agreement shall commence on the Effective Date and continue for a period of three (3) years (“Initial Term”) and may be extended by the parties for additional two (2) year periods upon mutual written agreement of the parties (each such additional period, a “Renewal Term”), provided such mutual agreement occurs at least one (1) year prior to the expiration of the then-current Term and shall thereafter expire, unless sooner terminated pursuant to Section 7.2 herein.

 

7.2                               Termination.  This Agreement may be terminated as follows:

 

(a)                                 Termination for Breach. Either party may terminate this Agreement upon the material breach of any provision of this Agreement, including any representation,

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

warranty or covenant, by the other party if such breach is not cured by the breaching party within thirty (30) days after receipt by the breaching party of written notice of such breach.

 

(b)                                 Termination for Financial Matters.  This Agreement may be terminated immediately by either party by giving the other party written notice thereof in the event such other party becomes insolvent, makes a general assignment for the benefit of its creditors, or proceedings are commenced in any court by or against such party seeking (a) such party’s reorganization, liquidation, dissolution, arrangement or winding up, or the composition or readjustment of its debts, (b) the appointment of a receiver or trustee for or over such party’s property, or (c) similar relief in respect of such party under any law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debt.

 

(c)                                  Termination for Convenience.  Client shall have the right to terminate this Agreement, without cause, with twelve (12) months prior written notice to Althea.  Althea shall have the right to terminate this Agreement, without cause, with twenty-four (24) months prior written notice to Client.

 

7.3                               Consequences of Expiration or Termination.

 

(a)                                 Accrued Obligations.  Expiration or termination of this Agreement for any reason shall not exempt either party from paying or reimbursing, as applicable, any amounts outstanding and due such other party at the time of such expiration or termination.

 

(b)                                 Purchase of Client Product & Reimbursement of Expenses.

 

(i)                                    Upon expiration or termination of this Agreement except termination by Althea under section 7.1(a) or 7.1(b), Althea shall Produce and deliver, and Client shall purchase in accordance with the provisions hereof, any and all amounts of Client Product ordered pursuant to Purchase Orders submitted by Client prior to the date on which notice of such termination is given, or prior to the expiration date, as applicable.

 

(ii)                                In addition, upon termination of this Agreement by Althea pursuant to Section 7.2(a) (Termination for Breach) or 7.2(b) (Termination for Financial Matters), or termination by Client pursuant to Section 7.2(c) (Termination for Convenience), Client shall be liable to purchase or pay for (1) any Production-in-progress pursuant to the Binding Portion of the Forecast, (2) the reasonable and documented costs of Althea Supplied Components or other commitments that were ordered or entered into by Althea for the Production of the Batches set forth in the Firm or Binding Portion of the Forecast to the extent such orders are not cancelable or returnable and (3) any Cancellation Fees due.

 

(c)                                  Transitional Manufacturing Obligations.  In the event of termination of this Agreement by either Party except termination by Althea under section 7.1(a) or 7.1(b), Client shall have the right, in its sole discretion and upon written notice to Althea have Althea provide to Client, at Client’s cost and expense at Althea’s then-current technology transfer rates, such assistance as Client may reasonably require in transferring Production of the Client Product performed by Althea hereunder to an alternative manufacturer.

 

7.4                               Survival.  Termination, expiration, cancellation or abandonment of this Agreement through any means or for any reason shall be, except as set forth in to Article 7,

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

without prejudice to any accrued obligation or the rights and remedies of either party with respect to any antecedent breach of any of the provisions of this Agreement. The provisions of the following Articles and Sections shall survive expiration or termination of this Agreement: Articles 1 (Definitions), 8 (Force Majeure), 9 (Confidentiality), 10 (Inventions), 12 (Limitation of Liability and Waiver of Property Claims), 13 (Indemnification), 14 (Insurance), and 15 (General Provisions); and Sections 2.5(e) (Title), 3.6 (Default in Payment Obligations), 5.5 (Regulatory Compliance), 5.6 (Client Product Recalls), 7.3(c) (Transitional Manufacturing Obligations), 7.4 (Survival), 11.2(a) (Client Product), and 11.4 (Disclaimer of Warranties).

 

8.                                      FORCE MAJEURE

 

Failure of either party to perform under this Agreement (except the obligation to make payments) shall not subject such party to any liability to the other if such failure is caused by acts of God, acts of terrorism, fire, explosion, flood, drought, war, riot, sabotage, embargo, strikes or other labor trouble, compliance with any order or regulation of any government entity, or by any cause beyond the reasonable control of the affected party, whether or not foreseeable, provided that written notice of such event is promptly given to the other party. In the case of a force majeure event, Althea shall use commercially reasonable efforts to assist Client to arrange for the Production of Client Product through subcontracting or other means as appropriate to provide Client Product.  The responsibility for any differential in the cost for such Production will be mutually agreed upon by the parties.  However, if Althea is unable to provide a solution for the Production of Client Product within *** days of such event, Client may terminate this Agreement as specified in Section 7.2(c) (Termination for Convenience) and the requirements of Section 7.3(b) (Purchase of Client Product) shall not apply.

 

9.                                      CONFIDENTIALITY.

 

9.1                               Confidentiality.  For purposes of this Agreement “Confidential Information” means all information of a party (the “Disclosing Party”) received by the other party (the “Receiving Party”) in connection with this Agreement including all data, inventions and information developed in or as a result of the performance of this Agreement, whether in oral, written, graphic or electronic form.  Without limiting the generality of the foregoing, all Inventions and Intellectual Property of either party shall be deemed the “Confidential Information” of such party.  Receiving Party shall: (a)  use Disclosing Party’s Confidential Information only for the purposes set forth in this Agreement; (b)  receive, maintain and hold the Disclosing Party’s Confidential Information in strict confidence and to use the same methods and degree of care (but at least reasonable care) to prevent disclosure of such Confidential Information as it uses to prevent disclosure of its own proprietary and Confidential Information and to protect against its dissemination to unauthorized parties; (c) not to disclose, or authorize or permit the disclosure of any of Disclosing Party’s Confidential Information to any third party without the prior written consent of the Disclosing Party; and (d) except as needed to fulfill its obligations hereunder, return or destroy any of Disclosing Party’s Confidential Information to the Disclosing Party at the request of the Disclosing Party and to retain no copies or reproductions thereof, except that the Receiving Party may retain a single archival copy of the Confidential Information for the sole purpose of determining the scope of obligations incurred under this Agreement.

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

9.2                               Limitations.  The Receiving Party shall not be obligated to treat information as Confidential Information of the Disclosing Party if the Receiving Party can show by competent written evidence that such information: (a) was already known to the Receiving Party without any obligations of confidentiality prior to receipt from the Disclosing Party; (b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party; (c) became generally available to the public or otherwise part of the public domain after its disclosure, other than through any act or omission of the Receiving Party in breach of any obligation of confidentiality; (d) was disclosed to the Receiving Party, by a third party who was not under any obligation, direct or indirect, to Disclosing Party with respect to confidentiality or non-use; or (e) was independently discovered or developed by the Receiving Party without the use of or reference to the Disclosing Party’s Confidential Information.

 

9.3                               Authorized Disclosure.  Notwithstanding Section 9.1, the Receiving Party may disclose Confidential Information, without violating its obligations under Article 9, to the extent the disclosure is required by a valid order of a court or other governmental body having jurisdiction; provided, however, that the Receiving Party gives reasonable prior written notice to the Disclosing Party of such required disclosure in order to allow Disclosing Party, at its option and expense, to seek a protective order preventing or limiting the disclosure and/or requiring that the Confidential Information so disclosed be used only for the purposes for which the law or regulation requires, or for which the order was issued, and continues to treat such information as confidential under this Agreement.  The Receiving Party will limit access to the Confidential Information of the Disclosing Party to only those of the Receiving Party’s employees, consultants, or professional advisors having a need to know and who are bound by obligations of confidentiality and non-use consistent with those set forth herein.  Notwithstanding the foregoing, Althea shall be permitted to disclose Client Product information to third party developmental and analytical service providers who have a need to know such information in connection with performance of its obligations hereunder, provided such providers shall be subject to confidentiality agreements consistent with this Article 9.

 

9.4                               Injunctive Relief.  The parties expressly acknowledge and agree that any breach or threatened breach of this Article 9 may cause immediate and irreparable harm to the Disclosing Party which may not be adequately compensated by damages.  Each party therefore agrees that in the event of such breach or threatened breach and in addition to any remedies available at law, the Disclosing Party shall have the right to seek equitable and injunctive relief in connection with such a breach or threatened breach.

 

9.5                               Public Announcements.  Neither party shall publicize or make any announcement concerning this Agreement or the other party which includes the identity, name(s) or other trademarks of the other party or its Confidential Information, or the identity of Client Product or the financial terms of this Agreement without the other party’s prior written consent provided, however, that either party may (a) disclose the terms of this Agreement insofar as required to comply with applicable securities laws, provided that in the case of such disclosures the party proposing to make such disclosure notifies the other party reasonably in advance of such disclosure and cooperates to minimize the scope and content of such disclosure, and (b) disclose the terms of this Agreement to such party’s investors, professional advisors or potential investors, acquirers, or merger candidates who are bound by obligations of confidentiality and non-use consistent with those set forth herein.  Each party agrees that it shall cooperate fully and in a timely manner with the other with respect to any disclosures to the

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Securities and Exchange Commission and any other governmental or regulatory agencies, including requests for confidential treatment of Confidential Information of either party included in any such disclosure.

 

9.6                               Duration of Confidentiality.  All obligations of confidentiality and non-use imposed upon the parties under this Agreement shall expire *** (***) years after the expiration of the Term; provided, however, that Confidential Information which constitutes the trade secrets of a party if expressly labeled as such by the Disclosing Party at the time of disclosure shall be kept confidential indefinitely, subject to the limitations set forth in Sections 9.2 (Limitations) and 9.3 (Authorized Disclosure).

 

10.                               INVENTIONS.

 

10.1                        Existing Intellectual Property; Client’s Intellectual Property.  Each party shall own and continue to own its patents, trademarks, copyrights, trade secrets, data and other Intellectual Property, without conferring any interests therein to the other party. Without limiting the generality of the preceding sentence, Client shall retain all right, title and interest arising under the United States Patent Act, the United States Trademark Act, the United States Copyright Act and all other applicable laws, rules and regulations in and to (a) all Client Product, all data associated therewith, Labeling and trademarks associated with Client Product and (b) any Inventions that are conceived, reduced to practice, or created by a party or jointly created by the parties in the course of performing its obligations under this Agreement, or an improvement(s) to such Invention (“Project Inventions”) in each case (a) and (b) that (i) are derived from Client’s Confidential Information or (ii) are specific to proprietary Client Product or Drug Substance (the foregoing collectively, “Client’s Intellectual Property”). Neither Althea nor any third party shall acquire any right, title or interest in Client’s Intellectual Property by virtue of this Agreement or otherwise, except to the extent expressly provided herein.  Althea hereby assigns to Client all of Althea’s right, title and interest in, to and under Client’s Intellectual Property.

 

10.2                        Althea-Owned Project Inventions; License Grant.  Althea shall solely own all Project Inventions that are conceived, reduced to practice, or created solely by Althea or its agents in the course of performing its obligations under this Agreement that are not Client’s Intellectual Property (“Althea-Owned Project Inventions”).  Althea hereby grants Client, solely to the extent necessary or useful for Client to Produce the Client Product to the same extent as Althea is obligated to do under this Agreement, the following licenses: (a) a fully-paid, royalty-free non-exclusive license, with the right to grant sublicenses, to practice each Althea-Owned Project Invention; and (b) a non-exclusive license or sublicense, as applicable, with the right to grant sublicenses unless prohibited under the terms of a license between Althea and a third party, under all other intellectual property rights owned or controlled by Althea, subject to Client paying Althea only an amount equal to any payments that Althea is obligated to make to third parties as a direct result of a sublicense under intellectual property rights of a third party; provided, however, that Client covenants not to exercise the foregoing licenses unless and until this Agreement expires or terminates.

 

10.3                        Disclaimer.  Except as otherwise expressly provided herein, nothing contained in this Agreement shall be construed or interpreted, either expressly or by implication, estoppel or otherwise, as: (i) a grant, transfer or other conveyance by either party to the other of any right, title, license or other interest of any kind in any of its Inventions or other Intellectual Property,

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

(ii) creating an obligation on the part of either party to make any such grant, transfer or other conveyance or (iii) requiring either party to participate with the other party in any cooperative development program or project of any kind or to continue with any such program or project.

 

10.4                        Rights in Inventions.  The party owning any Invention shall have the world wide right to control the drafting, filing, prosecution and maintenance of patents covering the Inventions including decisions about the countries in which to file patent applications. Patent costs associated with the patent activities described in this Section shall be borne by the sole owner. Each party will cooperate with the other party in the filing and prosecution of patent applications. Such cooperation will include, but not be limited to, furnishing supporting data and affidavits for the prosecution of patent applications and completing and signing forms needed for the prosecution, assignment and maintenance of patent applications.

 

10.5                        Confidentiality of Inventions.  Inventions shall be and any disclosure of information by one party to the other under the provisions of this Article 10 shall be subject to the provisions of Article 9. It shall be the responsibility of the party preparing a patent application to obtain the written permission of the other party to use or disclose the other party’s Confidential Information in the patent application before the application is filed and for other disclosures made during the prosecution of the patent application, such permission not to be unreasonably withheld or delayed.

 

11.                               REPRESENTATIONS AND WARRANTIES.

 

11.1                        Mutual Representations. Each party hereby represents and warrants to the other party that (a) such party is duly organized, validly existing, and in good standing under the laws of the place of its establishment or incorporation, (b) such party has taken all action necessary to authorize it to enter into this Agreement and perform its obligations under this Agreement, (c) this Agreement will constitute the legal, valid and binding obligation of such party, and (d) neither the execution of this Agreement nor the performance of such party’s obligations hereunder will conflict with, result in a breach of, or constitute a default under any provision of the organizational documents of such party, or of any law, rule, regulation, authorization or approval of any government entity, or of any agreement to which it is a party or by which it is bound.

 

11.2                        Althea Representations, Warranties and Covenants.

 

(a)                                 Client Product.  Althea represents and warrants that Client Product shall be Produced in accordance with the Specifications and cGMP.

 

(b)                                 Permits, Resources and Compliance.  Althea represents and warrants that: (i) it has obtained (or will obtain prior to Producing Client Product), and will remain in compliance with during the Term, all permits, licenses and other authorizations which are required under Regulations generally applicable to its operations and the Facility; (ii) except as may be expressly excluded under this Agreement, it has, and shall at all times during the Term retain, all equipment, personnel and other materials, resources and expertise that are necessary to perform its obligations under this Agreement; and (iii) as of the Effective Date, the Facility is in compliance with cGMP and all other laws and Regulations generally applicable to its operations and the Facility, and shall maintain such compliance at all times during the Term, provided that

 

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Althea makes no warranty or representation as to any compliance which is specific to Production or Client Product.  If at any time any representation or warranty in this Section 11.2(b) is no longer true or accurate for any reason, Althea shall immediately notify Client in writing of such fact and Client shall have the right to terminate this Agreement pursuant to Section 7.2(a) (Termination for Breach).

 

(c)                                  Not Debarred; No Convictions.  Althea represents and warrants that it is not, nor is reasonably likely to become (based on a conviction by the courts or a finding of fault by any applicable Governmental Authority): (i) debarred pursuant to the Generic Drug Enforcement Act of 1992 (21 U.S.C. § 335a), as amended from time-to-time; (ii) disqualified from participating in clinical trials pursuant to 21 C.F.R. §312.70, as amended from time-to-time; (iii) disqualified as a testing facility under 21 C.F.R. Part 58, Subpart K, as amended from time-to- time; (iv) excluded, debarred or suspended from or otherwise ineligible to participate in a “Federal Health Care Program” as defined in 42 U.S.C. 1320a-7b(f), as amended from time-to-time, or any other governmental payment, procurement or non-procurement program; or (v) included on the HHS/OIG List of Excluded Individuals/Entities, the General Services Administration’s List of Parties Excluded from Federal Programs, or the FDA Debarment List, each as amended from time-to-time.  Althea represents and warrants that it shall not hire or retain as an officer, employee or any person who has been convicted of a misdemeanor or felony under the Food, Drug, and Cosmetic Act or under the laws regulating any federal healthcare program by the U.S. Department of Health and Human Services.  If at any time a representation and warranty in this Section 11.2(c) (Not Debarred; No Convictions) is no longer true or accurate for any reason, Althea shall immediately notify Client in writing of such fact.

 

(d)                                 Intellectual Property.  Althea represents and warrants that it has no knowledge that its Production of Client Products hereunder will infringe or misappropriate any third party’s Intellectual Property.

 

11.3                        Client Warranties:  Client represents and warrants that (a) it has the right to give Althea any Client Supplied Components and information provided by Client hereunder, and that Althea has the right to use such components and information for the Production of Client Product, and (b) as of the Effective Date Client has no knowledge of any patents or other Intellectual Property that would be infringed or misappropriated by Althea’s Production of Client Product or performance of any other of its obligations under this Agreement.  Client further warrants that the Drug Substance provided to Althea hereunder conforms to its Specifications.

 

11.4                        Disclaimer of Warranties.  Except as expressly set forth in this Agreement, NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.  Without limiting the foregoing, Althea makes no representation or warranty, and Client expressly waives all claims against all Althea Indemnitees arising out of or in connection with any claims relating to the stability, efficacy, safety, or toxicity of any Client Product, provided that such Client Product has been Produced in accordance with this Agreement, the Quality Agreement, the Specifications and cGMP and is not Defective. Althea makes no representation or warranty with respect to compliance or permits specific to Client Product or Drug Substance or their manufacture, nor related to the sale, marketing, distribution or use of Drug Substance or Client Product, nor with respect to the Labeling of Client Product.  Althea makes no representation or

 

19

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

warranty with respect to the sale, marketing, Labeling, distribution or use of the Drug Substance or, except as expressly set forth in Section 11.2(a) (Client Product), the Client Product.

 

12.                               LIMITATION OF LIABILITY AND WAIVER OF PROPERTY CLAIMS.

 

12.1                        Mutual Limitation of Liability.  Client’s sole and exclusive remedies for any covenants, representations or warranties related to failure to deliver conforming Client Product are set forth in sections 4.5, 4.7, 4.8 and 5.6.  EXCEPT FOR A PARTY’S OBLIGATIONS UNDER SECTION 9 (CONFIDENTIALITY) AND SECTION 13 (INDEMNIFICATION), UNDER NO CIRCUMSTANCES SHALL A PARTY BE LIABLE FOR LOSS OF USE OR PROFITS OR OTHER INDIRECT, COLLATERAL, SPECIAL, CONSEQUENTIAL, PUNITIVE OR OTHER DAMAGES, LOSSES, OR EXPENSES, INCLUDING WITH RESPECT TO ALTHEA THE COST OF A RECALL OR COST OF COVER IN CONNECTION WITH, OR BY REASON OF THE PRODUCTION AND DELIVERY OF CLIENT PRODUCT UNDER THIS AGREEMENT REGARDLESS OF WHETHER SUCH CLAIMS OR DAMAGES ARE FORESEEABLE OR ARE FOUNDED IN TORT OR CONTRACT.

 

12.2                        Althea Limitation of Liability.  EXCEPT FOR ALTHEA’S LIABILITY UNDER SECTIONS 9 (CONFIDENTIALITY) AND 13 (INDEMNIFICATION), IN NO EVENT SHALL ALTHEA’S AGGREGATE LIABILITY UNDER THIS AGREEMENT EXCEED THE AMOUNT OF FEES PAID BY CLIENT TO ALTHEA UNDER THIS AGREEMENT.  THIS LIMITATION SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

 

12.3                        Waiver of Property Claims.  All Althea Supplied Components and equipment used by Althea in the Production of Client Product (collectively, “Althea Property”) shall at all times remain the property of Althea and Althea assumes risk of loss for such property until delivery of Client Product to a common carrier as specified under Section 4.2(a) (Delivery) or when risk of loss otherwise shifts to Client.  Althea hereby waives any and all rights of recovery against Client and its Affiliates, and against any of their respective directors, officers, employees, agents or representatives, for any loss or damage to Althea Property.  Except as set forth in Section 4.8 (Replacement of Drug Substance and Client Supplied Components), Client assumes all risk of loss at all times for all Client Supplied Components and Client equipment.  Client assumes risk of loss for all Client Product upon delivery to a common carrier as specified under Section 4.2(a) (Delivery) or when risk of loss otherwise shifts to Client.

 

13.                               INDEMNIFICATION.

 

13.1                        Client Indemnification.  Client hereby agrees to defend, indemnify and hold harmless Althea and its Affiliates and their respective officers, directors, employees, contractors, consultants and agents (each, an “Althea Indemnitee”) from and against any and all losses, damages, liabilities, expenses and costs, including reasonable legal expenses and attorneys’ fees (“Losses”), to which any Althea Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any third party including property damage, death or personal injury (a “Claim”) against an Althea Indemnitee arising or resulting, directly or indirectly, from (a) Client’s storage, disposal, promotion, labeling, marketing, distribution, forward processing, use or sale of Client Product or Client Supplied Components, (b) Client’s

 

20

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

negligence or willful misconduct, (c) Client’s breach of this Agreement, (d) any claim that the use, sale, marketing or distribution of Drug Substance or Client Product by Client, the production of Drug Substance, or the Production of Client Product by Althea in accordance with the Specifications, infringes or misappropriates the patent, trademark, copyright or other intellectual property rights of any third party, or (e) Client’s employees or contractors, including any personal injury/workman’s compensation, employment- or benefit-related claims; except to the extent any such Loss(es) are caused solely by the gross negligence or willful misconduct of the Althea Indemnitees or are within any of the matters indemnified by Althea in Section 13.2 below.

 

13.2                        Althea Indemnification.  Althea hereby agrees to defend, indemnify and hold harmless Client and its Affiliates and any of their respective directors, officers, employees, subcontractors and agents (each, a “Client Indemnitee”) from and against any and all Losses to which any Company Indemnitee may become subject as a result of any Claim arising solely from (a) an Althea Indemnitee’s negligence or willful misconduct, (b) Althea’s breach of this Agreement, or (c) Althea’s employees or contractors, including any personal injury/workman’s compensation, employment- or benefit-related claims; except to the extent any such Loss(es) are caused solely by or are within any of the matters indemnified by Client in Section 13.1 above.

 

13.3                        Indemnitee Obligations.  A party that makes a claim for indemnification under this Article 13 shall promptly notify the other party (the “Indemnitor”) in writing of any action, claim or other matter in respect of which such party, intends to claim such indemnification; provided, however, that failure to provide such notice within a reasonable period of time shall not relieve the Indemnitor of any of its obligations hereunder except to the extent the Indemnitor is prejudiced by such failure.  The indemnified party shall permit the Indemnitor, at its discretion, to settle any such action, claim or other matter, and the indemnified party agrees to the complete control of such defense or settlement by the Indemnitor.  Notwithstanding the foregoing, the Indemnitor shall not enter into any settlement that would adversely affect the indemnified party’s rights hereunder, or impose any obligations on the indemnified party other than customary mutual general release terms, without indemnified party’s prior written consent, which shall not be unreasonably withheld or delayed. No such action, claim or other matter shall be settled without the prior written consent of the Indemnitor, which shall not be unreasonably withheld or delayed.  The indemnified party shall fully cooperate with the Indemnitor and its legal representatives in the investigation and defense of any action, claim or other matter covered by the indemnification obligations of this Article 13. The indemnified party shall have the right, but not the obligation, to be represented in such defense by counsel of its own selection and at its own expense.

 

14.                               INSURANCE.

 

14.1                        Client Insurance.  Client shall procure and maintain, from the Effective Date through the date that is one year after the expiration date of all Client Product Produced under this Agreement, commercial general liability insurance, including product liability and contractual liability coverage (the “Client Insurance”). The Client Insurance shall cover amounts not less than $*** per occurrence. Client shall provide certificates of such insurance to Althea upon request. If Client fails to furnish such certificates or endorsements, or if at any time during the Term Althea is notified of the cancellation or lapse of the Client Insurance, and Client fails to rectify the same within *** (***) days after notice from Althea, Althea, at its option, may

 

21

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

terminate this Agreement. Any deductible and/or self-insurance retention shall be the sole responsibility of Client.  Such insurance shall include

 

(a)                                 Workers Compensation & Employers Liability coverage providing statutory benefits in the state of operations for Client.

 

(b)                                 Commercial General Liability Insurance, including Product Liability and coverage, on an occurrence basis, including Products Liability coverage in an amount not less than $*** per Occurrence.  The Commercial General Liability Insurance policy shall name Althea as an additional insured on a Primary and Non-Contributory basis.  If the Products Liability coverage is provided on a Claims Made policy form, then notwithstanding anything to the contrary in the Agreement, the Products Liability coverage shall be maintained until *** (***) years after the expiration date of any Product is Produced under this Agreement.

 

14.2                        Althea Insurance.  Althea shall procure and maintain, from the Effective Date through the date that is one year after the expiration date of all Client Product Produced under this Agreement insurance coverage as follows (the “Althea Insurance”).  Althea shall provide certificates of such insurance to Client upon request. If Althea fails to furnish such certificates or endorsements, or if at any time during the Term Client is notified of the cancellation or lapse of the Althea Insurance, and Althea fails to rectify the same within *** (***) days after notice from Client, Client, at its option, may terminate this Agreement. Any deductible and/or self-insurance retention shall be the sole responsibility of Althea:

 

(a)                                 Commercial General Liability Insurance, including Product Liability and coverage, on an occurrence basis with minimum limits of $*** per Occurrence.  The Commercial General Liability Insurance policy shall name Client as an additional insured on a Primary and Non-Contributory basis.  If the Products Liability coverage is provided on a Claims Made policy form, then notwithstanding anything to the contrary in the Agreement, the Products Liability coverage shall be maintained until *** (***) years after the expiration date of any Product is Produced under this Agreement.

 

(b)                                 Workers Compensation & Employers Liability coverage providing statutory benefits in the state of operations for Althea.

 

(c)                                  Property Insurance, including flood and earthquake coverage, covering the the Facility and Althea’s equipment and property.

 

(d)                                 Professional Liability, Errors & Omissions Liability coverage in an amount not less than $*** per occurrence.

 

14.3                        Waiver of Subrogation.  Each party hereby waives and shall cause its insurers to waive any and all rights of recovery against the other party and its Affiliates, and against any of their respective directors, officers, employees, agents or representatives, for any loss or damage that is covered by insurance whether or not such insurance is described in this Agreement, or should have been covered by insurance described in this Agreement, but for the such party’s failure to procure or maintain it.

 

22

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

15.                               GENERAL PROVISIONS.

 

15.1                        Notices.  Any notice to be given under this Agreement must be in writing and delivered either in person, by any method of mail (postage prepaid) requiring return receipt, or by overnight courier or facsimile confirmed thereafter by any of the foregoing, to the party to be notified at its address given below, or at any address such party has previously designated by prior written notice to the other.  Notice shall be deemed sufficiently given for all purposes upon the actual delivery thereof at the address designated in accordance with this paragraph.

 

If to Client:                                                                                 Insmed Incorporated
 10 Finderne Avenue, Building 10
 Bridgewater, New Jersey 08807
 Attn:                    CFO

 

Telephone:                                   (908) 977-9900
 Facsimile:                                         (908) 526-4047

 

with a copy to:

 

Insmed Incorporated
 10 Finderne Avenue, Building 10
 Bridgewater, New Jersey 08807
 Attn:                    General Counsel

 

Telephone:                                   (908) 977-9900
 Facsimile:                                         (908) 526-4047

 

If to Althea:                                                                             Ajinomoto Althea, Inc.
 11040 Roselle Street
 San Diego, CA 92121
 Attn: Chief Financial Officer

 

Telephone:                                   (858) 882-0123
 Facsimile:                                         (858) 882-0133

 

15.2                        Entire Agreement; Amendment.  The parties hereto acknowledge that this Agreement sets forth the entire agreement and understanding of the parties and supersedes all prior written or oral agreements or understandings with respect to the subject matter hereof. No modification of any of the terms of this Agreement, or of any attachments or Appendices, shall be deemed to be valid unless in writing and signed by an authorized agent or representative of both parties hereto. No course of dealing or usage of trade shall be used to modify the terms and conditions herein.

 

15.3                        Waiver.  None of the provisions of this Agreement shall be considered waived by any party hereto unless such waiver is agreed to, in writing, by authorized agents of both parties. The failure of a party to insist upon strict conformance to any of the terms and conditions hereof, or failure or delay to exercise any rights provided herein or by law shall not be deemed a waiver of any rights of any party hereto.

 

23

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

15.4                        Assignment.  This Agreement may not be assigned or transferred by either party including by operation of law without the prior written consent of the other, which consent will not be unreasonably withheld or delayed; provided, however, that either party may assign this Agreement including by operation of law without the other party’s consent to an Affiliate or in connection with the transfer or sale of all or substantially all of the business of such party to which this Agreement relates, whether by merger, sale of stock, sale of assets or otherwise, provided that if such assignment is to an Affiliate, the assigning party shall be jointly responsible for Affiliate’s obligations hereunder.  Any attempted assignment of this Agreement not in compliance with this Section 15.4 (Assignment) shall be null and void.  No assignment shall relieve either party of the performance of any accrued obligation that such party may then have under this Agreement.  This Agreement shall inure to the benefit of and be binding upon each party signatory hereto, its successors and permitted assigns, subsidiaries and Affiliates.

 

15.5                        Taxes.  Client shall bear the cost of all national, state, municipal or other sales, use, excise, import, property, value added, or other similar taxes, assessments or tariffs assessed upon or levied against the Production or sale of Client Product pursuant to this Agreement or the sale or distribution of Client Product by Client (or at Client’s sole expense, defend against the imposition of such taxes and expenses). Althea shall notify Client of any such taxes that any governmental authority is seeking to collect from Althea, and Client may assume the defense thereof in Althea’s name, if necessary, and Althea agrees to fully cooperate in such defense to the extent of the capacity of Althea, at Client’s expense. Althea shall pay all national, state, municipal or other taxes on the income resulting from the sale by Althea of the Client Product to Client under this Agreement, including gross income, adjusted gross income, supplemental net income, gross receipts, excess profit taxes, or other similar taxes.

 

15.6                        Independent Contractor.  Althea shall act as an independent contractor for Client in providing the services required hereunder and neither party shall be considered an agent or employer of, or joint venturer with, the other party or its employees.

 

15.7                        Governing Law; Limitations.  Any action brought related to this Agreement or the activities contemplated hereunder shall be governed in all respects by the laws of the State of New York, without regard to the principles of conflicts of laws.

 

15.8                        Dispute Resolution.  Prior to initiating any court, administrative or other action on a claim, dispute, demand or assertion related to this Agreement or the services hereunder (collectively, a “Dispute”), the claimant shall give notice to the other party, detailing the nature of the Dispute and the facts relevant thereto and the parties shall in good faith attempt to resolve such Dispute.  No court, administrative or other action shall be filed or otherwise initiated until the parties have exhausted good faith settlement attempts by first, direct negotiation and second, mediation by a mutually-agreeable professional mediator under the appropriate Mediation Procedures of the American Arbitration Association.  The defending party shall be entitled to recover from the other party, in addition to any other damages awarded, all of its attorneys fees incurred in any action initiated in violation of this section, regardless of outcome.  The site of the mediation shall be in a place mutually agreed.  The costs of mediation shall be borne equally by the parties.

 

15.9                        Attorney’s Fees.  The successful party in any litigation or other dispute resolution proceeding to enforce the terms and conditions of this Agreement shall be entitled to

 

24

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

recover from the other party reasonable attorney’s fees and related costs involved in connection with such litigation or dispute resolution proceeding.

 

15.10                 Severability.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the parties shall negotiate in good faith with a view to the substitution therefor of a suitable and equitable provision in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid provision; provided, however, that the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be in any way impaired thereby, it being intended that all of the rights and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law.

 

15.11                 Headings; Rules of Construction.  The captions and headings to this Agreement are for convenience only, and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement.  Unless specified to the contrary, references to Articles, Sections or Exhibits shall refer to the particular Articles, Sections or Exhibits of or to this Agreement and references to this Agreement include all Exhibits hereto.  Unless context otherwise clearly requires, whenever used in this Agreement:

 

(a)                                 the words “include” or “including” shall be deemed to be followed by the phrase “but not limited to” or “without limitation” or words of similar import;

 

(b)                                 the word “day,” “quarter” or “year” (and derivatives thereof, e.g., “quarterly”) shall mean a calendar day, calendar quarter or calendar year unless otherwise specified (and “annual” or “annually” refer to a calendar year);

 

(c)                                  the word “hereof,” “herein,” “hereby” and derivative or similar word refers to this Agreement (including any Exhibits);

 

(d)                                 the word “or” shall have its inclusive meaning identified with the phrase “and/or;”

 

(e)                                  the words “will” and “shall” shall have the same obligatory meaning;

 

(f)                                   words of any gender include the other gender; and

 

(g)                                 words using the singular or plural number also include the plural or singular number, respectively.

 

15.12                 Interpretation.  Althea and Client have each participated in negotiations and due diligence and consulted their respective counsel regarding this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

15.13                 Counterparts.  This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.  Signatures to this Agreement that are transmitted by facsimile, electronic

 

25

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

mail in “portable document format” (“.pdf”), or by any other electronic means intended to preserve the original graphic and pictorial appearance of this Agreement will have the same effect as physical delivery of the paper document bearing an original signature

 

[Signature page follows]

 

26

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be executed by their duly-authorized representatives as of the Effective Date above.

 

	
INSMED INCORPORATED
    	
AJINOMOTO   ALTHEA, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Andrew T. Drechsler
    	
 
    	
By:
    	
/s/ Martha J. Demski
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Andrew T. Drechsler
    	
 
    	
Name:
    	
Martha J. Demski
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
CFO
    	
 
    	
Title:
    	
SVP/CFO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
9/10/15
    	
 
    	
Date:
    	
9/15/15
    

 

27

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

EXHIBIT A

 

Quote(s)

 

28

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

Presents

 

 

 

 

October 2014

 

	

    	
CONFIDENTIAL
    	
Sales Quote #5646
    

 

1

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

1.              EXECUTIVE SUMMARY 

 

Amikacin is an FDA approved drug with established efficacy. ARIKAYCE is a liposomal formulation of Amikacin, an FDA-approved IV aminoglycoside antibiotic that has proven efficacy in the treatment of gram-negative infections. It is a member of the aminoglycoside class of antibiotics. Amikacin has been long recognized as one of the most potent/effective treatments for gram-negative infections including Pseudomonas, as well as non-tuberculosis mycobacterium (NTM). The value of the systemic use of IV Amikacin has been limited by issues of nephrotoxicity (damage to the kidney) and ototoxicity (damage to the ear).

 

ARIKAYCE may be desirable because it delivers high, sustained levels of drug to the lung while potentially minimizing systemic exposure well below known toxicity levels.

 

This proposal outlines the pricing of manufacturing of one cGMP commercial lot of Arikayce® for 2015 at the *** kg scale. Pricing is valid through December 31, 2015. Insmed may issue Purchase Orders (POs) against this general/blanket proposal for each ARIKAYCE lot requested through December 31, 2015. All project management and inventory management fees will be billed monthly from Sales Quote #5647.

 

Upon signature of this proposal by Insmed and Ajinomoto Althea, a project manager at Ajinomoto Althea will put a proposed schedule together.  The actual project timeline may vary pending the availability of facilities, equipment, raw materials and the successful transfer of documents.

 

All product development and manufacturing activities will take place at Ajinomoto Althea located in San Diego, CA 92121.  

 

This Proposal is governed by the terms and conditions of the Drug Product Production and Clinical Supply Agreement effective as of July 8, 2009 between Ajinomoto Althea (formerly known as Althea Technologies, Inc.) and Insmed Incorporated (formerly known as Transave, Inc.).  

 

2.              CONTACT INFORMATION 

 

	
Insmed Incorporated
    	
Ajinomoto Althea,   Inc.
    
	
 
    	
 
    
	
Suzan Lanz
   Sr. Director, Supply Chain & Logistics
   Princeton Corporate Plaza
   9 Deer Park Drive, Suite C
   Monmouth Junction, NJ 08852-1923
   p. ***
    	
Anish   Parikh
   Senior Director, Business Development
   11040 Roselle Street
    San   Diego, CA 92121
   p. ***
   f. ***
    

 

2

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

3.              FILL/FINISH

 

Formulation and Fill/Finish Deliverables, and Pricing

 

	
Service Description
    	
 
    	
Unit
    	
 
    	
Unit Price
    	
 
    	
Total Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Commercial Manufacturing - ***L scale [FF]

 

-                    Complex   Formulation
 -                    GMP   Fill/Finish up to *** vials
 -                    In-Process   testing
 -                    100%   Visual Inspection
 -                    Bulk   Packaging and Carton Labeling
 -                    Waste   Disposal

Deliverable: Executed QA reviewed batch record and   Drug product
    	
 
    	
***
    	
 
    	
$
    	
***
    	
 
    	
$
    	
***
    
									

 

4.              SHIPPING AND STORAGE

 

Shipping & Storage Deliverables, and Pricing

 

	
Service Description
    	
 
    	
Unit
    	
 
    	
Unit Price
    	
 
    	
Total Price
    
	
 
    	
 
    	
***
    	
 
    	
$
    	
***
    	
 
    	
$
    	
***
    
	
Shipment of Testing   Samples [SS]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
-                    Includes the   shipping management and preparation to designated destination within US

-                    Samples   will ship via a pre-qualified shipper and one temperature monitor per box
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Additional shipments beyond quoted units will be   $*** each and invoiced upon shipment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
***
    	
 
    	
$
    	
***
    	
 
    	
$
    	
***
    
	
Handling &   Packaging of Drug Product [SS]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
-                    Includes   the shipping management and preparation of product

-                    Verification   of shipment of products from Ajinomoto Althea to a client specified   destination (within US)

-                    Preparation   of domestic shipping documentation
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
***
    	
 
    	
$
    	
***
    	
 
    	
$
    	
***
    
	
Shipment of Drug   Product [SS]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
-                    Assumes   product is shipped with a validated dedicated service arranged by Ajinomoto   Althea with a temperature monitor

-                    Shipping   rates as charged per courier
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
An additional fee of $*** will incur should   Insmed’s courier account be used, in lieu of Althea’s, or Insmed arranges for   the shipment. Fees will be invoiced upon shipment.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

3

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

5.              MATERIALS, COMPONENTS & EQUIPMENT COSTS

 

Materials, Components & Equipment Deliverables and Pricing

 

	
Service Description
    	
 
    	
Unit
    	
 
    	
Unit Price
    	
 
    	
Total Price
    
	
 
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
*** 
    
	
Fill/Finish & Validation : Materials and   Components
    	
 
    	
 
    	
 
    	
***
    	
 
    	
***
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
-                    Purchase   and release container closure components, all bulk and compounding   containers, tubing, filters, assemblies, filling needles, and excipients

-                    USP   water and WFI for FF use

-                    Supply   and release client specified components

-                    Miscellaneous   fill/finish equipment

-                    Ajinomoto   Althea uses qualified vendors for the procurement of USP/EU compliant   materials
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Estimate   due upon placement of purchase order by Ajinomoto Althea, excluding markup,   shipping and taxes, if applicable. Upon release of the lot by Quality   Assurance and acceptance by the customer, a final invoice will be issued for   any additional costs and markup. Any over/under charges will be   credited/invoiced.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
									

 

4

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

6.              PAYMENT SCHEDULE

 

	
Milestone
    	
 
    	
%To Be Billed
    	
 
    	
Activity Total
    	
 
    	
Est. Invoice
   Amount
    	
 
    
	
PREPAYMENT
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Prepayment
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Due upon   signature. Excludes shipping and storage. No activities will begin until   upfront payment is received.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
FILL/FINISH
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
cGMP   Formulation & Fill/Finish
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Billed upon   Completion
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
cGMP   Formulation & Fill/Finish
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Billed upon   Release of Product
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
SUPPORTING   SERVICES
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Handling &   Packaging of Final Product
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Billed upon   shipment of each batch
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Prepayment
    	
 
    	
$
    	
***
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Service Total
    	
 
    	
$
    	
***
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sub-Total
    	
 
    	
$
    	
***
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
SHIPPING /   MATERIALS / EQUIPMENT
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shipment   of Testing Samples
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Billed upon each   shipment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shipment   of Final Product
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Billed upon   shipment of each batch
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Materials   and Components: Fill/Finish
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Due upon   placement of purchase order by Althea, excluding markup, shipping and taxes,   if applicable. Upon release of the lot by Quality Assurance and acceptance by   the customer, a final invoice will be issued for any additional costs and   markup of ***%. Any over/under charges will be credited/invoiced.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Grand Total
    	
 
    	
$
    	
***
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Unless otherwise stated on this payment schedule, all invoices are payable net *** days from invoice date, subject to payment terms in the Supply Agreement or Terms & Conditions as applicable.

 

5

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

7.              AUTHORIZATIONS

 

IN WITNESS WHEREOF, the parties hereto have each caused this Proposal/Statement of Work, including the general assumptions, and terms and conditions following this page, to be executed by their duly-authorized representatives as of October 2014.

 

 

	
INSMED INCORPORATED
    	
AJINOMOTO ALTHEA, INC.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Andrew T. Drechsler
    	
 
    	
By:
    	
/s/ Eric Deneroff
    
	
Name:
    	
Andrew T. Drechsler
    	
 
    	
Name:
    	
Eric Deneroff
    
	
Title:
    	
Chief Financial Officer
    	
 
    	
Title:
    	
Vice President,   Sales & Business Development
    
	
Date:
    	
October 27, 2014
    	
 
    	
Date:
    	
October 27, 2014
    
	
 
    
	
PO Number:
    	
 
    	
 
    	
 
    	
 
    
						

 

6

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

BLANKET CONTRACT:

COMMERCIAL CGMP MANUFACTURING  OF ARIKAYCE®

 

	
PREPARED FOR
    	
JULY, 2015
    

 

 

	

    	
CONFIDENTIAL
    	
Sales Quote #6219
    

 

1

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

1.              CONTACT INFORMATION

 

	
Insmed   Incorporated
    	
 
    	
Ajinomoto   Althea, Inc.
    
	
 
    	
 
    	
 
    
	
Suzan Lanz
    	
 
    	
Anish Parikh
    
	
Sr. Director,   Supply Chain & Logistics
    	
 
    	
Senior Director,   Business Development
    
	
Princeton   Corporate Plaza
    	
 
    	
11040 Roselle   Street
    
	
9 Deer Park   Drive, Suite C
    	
 
    	
San Diego, CA   92121
    
	
Monmouth   Junction, NJ 08852-1923
    	
 
    	
p. ***
    
	
p. ***
    	
 
    	
f. ***
    

 

2.              EXECUTIVE SUMMARY

 

Amikacin is an FDA approved drug with established efficacy. ARIKAYCE® is a liposomal formulation of Amikacin, an FDA-approved IV aminoglycoside antibiotic that has proven efficacy in the treatment of gram-negative infections. It is a member of the aminoglycoside class of antibiotics. Amikacin has been long recognized as one of the most potent/effective treatments for gram-negative infections including Pseudomonas, as well as non-tuberculosis mycobacterium (NTM). The value of the systemic use of IV Amikacin has been limited by issues of nephrotoxicity (damage to the kidney) and ototoxicity (damage to the ear).

 

ARIKAYCE® may be desirable because it delivers high, sustained levels of drug to the lung while potentially minimizing systemic exposure well below known toxicity levels.

 

This proposal outlines the pricing of manufacture of one cGMP commercial lot of ARIKAYCE® for 2015 at the *** kg scale. Pricing is valid through December 31, 2015. Insmed may issue Purchase Orders (POs) against this general/blanket proposal for each ARIKAYCE® lot requested through December 31, 2015. All project management and inventory management fees will be billed monthly from Sales Quote #5647.

 

Upon signature of this proposal by Insmed and Althea, a project manager at Althea will schedule a project kickoff meeting and begin the process of drafting a project schedule.  The actual project timeline may vary pending the availability of facilities, equipment, and raw materials.

 

All product development and manufacturing activities will take place at Althea located in San Diego, CA 92121.

 

This Proposal is governed by the terms and conditions of the Drug Product Production and Clinical Supply Agreement effective as of July 8, 2009 between Ajinomoto Althea (formerly known as Althea Technologies, Inc.) and Insmed Incorporated (formerly known as Transave, Inc.).

 

2

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

3.              DRUG PRODUCT MANUFACTURING

 

Formulation and Fill/Finish: Deliverables and Pricing

 

	
Service Description
    	
 
    	
Unit
    	
 
    	
Unit Price
    	
 
    	
Total Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
cGMP   Formulation & Fill/Finish: Commercial Manufacturing of ARIKAYCE® -   ***L Scale [FF]

 

-                    Complex formulation

-                    cGMP fill/finish of up to *** vials

-                    In-process testing

-                    100% visual inspection

-                    Bulk packaging and carton   labeling

-                    Waste disposal
    	
 
    	
***
    	
 
    	
$
    	
***
    	
 
    	
$
    	
***
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	    

    
	
* Refer to Pricing Matrix

 

Deliverable: Executed QA reviewed batch record and   Drug product
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

2015 Pricing Matrix

 

	
Number of Fills
    	
 
    	
Tiered Pricing
    	
 
    
	
Fills ***
    	
 
    	
$
    	
***
    	
 
    
	
Fills ***
    	
 
    	
$
    	
***
    	
 
    
	
Fills ***
    	
 
    	
$
    	
***
    	
 
    

 

3

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

4.              SHIPPING

 

Shipping: Deliverables and Pricing

 

	
Service Description
    	
 
    	
Unit
    	
 
    	
Unit Price
    	
 
    	
Total Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shipment of   Testing Samples [SS]

 

-                    Includes the shipping management   and preparation to designated destination within US

-                    Samples will ship via a   pre-qualified shipper and one temperature monitor per box

 

Additional   shipments beyond quoted units will be $*** each and invoiced upon shipment
    	
 
    	
***
    	
 
    	
$

 
    	
***

 

***
    	
 
    	
$
    	
***
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shipping Preparation of Final Drug Product [SS]

 

-                    Includes the shipping management   and preparation of product

-                    Verification of shipment of   products from Althea to a client specified destination (within US)

-                    Preparation of domestic shipping   documentation
    	
 
    	
***
    	
 
    	
$

 
    	
***

 

***
    	
 
    	
$
    	
***
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shipment of   Final Drug Product [SS]

 

-                    Assumes product is shipped with a   validated dedicated service arranged by Althea with a temperature monitor   (within US)

-                    Shipping rates as charged per   courier

 

An   additional fee of $*** will incur should Insmed’s courier account be used, in   lieu of Althea’s, or Insmed arranges for the shipment. Fees will be invoiced   upon shipment.
    	
 
    	
***
    	
 
    	
$

 
    	
***

 

***
    	
 
    	
$

 
    	
***

 

***
    

 

5.              MATERIALS, COMPONENTS & EQUIPMENT

 

Materials, Components & Equipment: Deliverables and Pricing

 

	
Service Description
    	
 
    	
Unit
    	
 
    	
Unit Price
    	
 
    	
Total Price
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Drug Product   Manufacturing: Materials and Components

 

-                    Purchase and release container   closure components, all bulk and compounding containers, tubing, filters, assemblies,   filling needles, and excipients

-                    USP water and WFI for FF use

-                    Supply and release client   specified components

-                    Miscellaneous fill/finish   equipment

-                    Althea uses qualified vendors for   the procurement of USP/EU compliant materials

 

Estimate   due upon placement of purchase order by Althea, excluding markup, shipping   and taxes, if applicable. Upon delivery of the released executed batch   record, a final invoice will be issued for any additional costs and markup.   Any over/under charges will be credited/invoiced.
    	
 
    	
*** ***
    	
%
    	
$

 
    	
***

***
    	
 
    	
$

 
    	
***

***
    
									

 

4

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

6.              PAYMENT SCHEDULE

 

	
Milestone
    	
 
    	
%To Be
   Billed
    	
 
    	
Activity
   Total
    	
 
    	
Est.
   Invoice
   Amount
    	
 
    
	
PREPAYMENT
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Prepayment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Due upon   signature. Excludes shipping and materials. No activities will begin until   upfront payment is received.
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
DRUG PRODUCT   MANUFACTURING
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
GMP   Formulation & Fill/Finish: Commercial Manufacturing of ARIKAYCE® -   ***L Scale
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Billed upon completion   per lot
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
GMP   Formulation & Fill/Finish: Commercial Manufacturing of ARIKAYCE® -   ***L Scale
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Billed upon   release of product per lot
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
SUPPORTING   SERVICES
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shipping   Preparation of Final Drug Product
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Billed upon   shipment of each batch
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Prepayment
    	
 
    	
 
    	
 
    	
$
    	
***
    	
 
    	
 
    	
 
    
	
Service Total
    	
 
    	
 
    	
 
    	
$
    	
***
    	
 
    	
 
    	
 
    
	
Subtotal *
    	
 
    	
 
    	
 
    	
$
    	
***
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
SHIPPING /   MATERIALS / EQUIPMENT
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shipment   of Testing Samples
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Billed upon each   shipment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shipment   of Final Drug Product
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Billed upon   shipment of each batch
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Materials   and Components: Drug Product Manufacturing
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Due upon   placement of purchase order by Althea, excluding markup, shipping and taxes,   if applicable. Upon delivery of the released executed batch record, a final   invoice will be issued for any additional costs and markup of ***%. Any   over/under charges will be credited/invoiced.
    	
 
    	
***
    	
%
    	
$
    	
***
    	
 
    	
$
    	
***
    	
 
    
	
Grand Total *
    	
 
    	
 
    	
 
    	
$
    	
***
    	
 
    	
 
    	
 
    

 

* Price per fill to be adjusted according to Pricing Matrix

 

Unless otherwise stated on this payment schedule, all invoices are payable net *** days from invoice date, subject to payment terms in the Supply Agreement as applicable.

 

5

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

7.              AUTHORIZATIONS

 

IN WITNESS WHEREOF, the parties hereto have each caused this Proposal/Statement of Work, including the general assumptions, and terms and conditions following this page, to be executed by their duly-authorized representatives as of July, 2015.

 

 

	
 
    	
INSMED   INCORPORATED
    	
 
    	
AJINOMOTO ALTHEA, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Andrew T. Drechsler
    	
 
    	
By:
    	
/s/ Jennifer Cannon,   Ph.D.
    
	
Name:
    	
Andrew T. Drechsler
    	
 
    	
Name:
    	
Jennifer Cannon, Ph.D.
    
	
Title:
    	
Chief Financial Officer
    	
 
    	
Title:
    	
Sr. Director,   Commercial Strategy
    
	
Date:
    	
July 1, 2015
    	
 
    	
Date:
    	
July 1, 2015
    
	
 
    	
 
    	
 
    
	
PO Number:
    	
 
    	
 
    	
 
    	
 
    
						

 

6

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

EXHIBIT B

 

PURCHASE PRICE

 

Price:  As set forth in Quote(s), attached as Exhibit A, when mutually executed by the parties, beginning with Quote *** (2015).  The parties shall negotiate in good faith to establish a *** based on *** by the end of the *** quarter of ***.

 

Beginning January 1 2016, Althea may increase the Purchase Price and/or Storage Price *** per calendar year by no more than PPI.  “PPI” shall mean the rate equal to the increase (if any) in the most recent ***, ***, series code ***, published by the United States Department of Labor, Bureau of Labor Statistics, or comparable successor index for the prior year.  For example, if Althea elects to increase the Purchase Price in May of 2016, PPI will be determined by the PPI for May 2015 thru April 2016 (or the closest 1-year period for which data is published).  For clarity, the cost of Components is separate from the Purchase Price and the price for Components shall at all times be based on Althea’s actual cost of said Components.

 

29Exhibit 4.1

 

ONE HUNDRED TWENTY-FIFTH SUPPLEMENTAL INDENTURE

 

Providing among other things for

 

FIRST MORTGAGE BONDS,

 

$250,000,000 4.10% Series due 2045

 

Dated as of November 6, 2015

 

 

CONSUMERS ENERGY COMPANY

 

TO

 

THE BANK OF NEW YORK MELLON,

 

TRUSTEE

 

Counterpart       of 80

 

 

THIS ONE HUNDRED TWENTY-FIFTH SUPPLEMENTAL INDENTURE, dated as of November 6, 2015 (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 101 Barclay St., 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 $6,000,000,000 (increased to $8,000,000,000 by Section 7 of this Supplemental Indenture) 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 4.10% Series due 2045, each of which bonds shall also bear the descriptive title “First Mortgage Bonds” (hereinafter provided for and hereinafter sometimes referred to as the “2045 Bonds” or the “Bonds”), the bonds of which series are to be issued as registered bonds without coupons and are to bear interest at the rate per annum specified in the title thereof and are to mature on November 15, 2045; and

 

2

 

WHEREAS, the Company and BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., and SunTrust Robinson Humphrey, Inc., as Representatives of the Underwriters named therein (the “Underwriters”) have entered into an Underwriting Agreement dated November 2, 2015 (the “Underwriting Agreement”), pursuant to which the Company agreed to sell and the Underwriters agreed to buy $250,000,000 in aggregate principal amount of 2045 Bonds ; and

 

WHEREAS, the registered bonds without coupons of the 2045 Bonds and the Trustee’s Authentication Certificate thereon are to be substantially in the following form, respectively, to wit:

 

{FORM OF REGISTERED BOND OF THE 2045 BONDS}

 

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

 

CONSUMERS ENERGY COMPANY
 FIRST MORTGAGE BOND
 4.10% SERIES DUE 2045

 

	
CUSIP:
    	
210518CY0
    	
$250,000,000
    

ISIN:  US210518CY08

 

No.: 1

 

CONSUMERS ENERGY COMPANY, a Michigan corporation (hereinafter called the “Company”), for value received, hereby promises to pay to Cede & Co., or registered

 

3

 

assigns, the principal sum of Two Hundred Fifty Million Dollars ($250,000,000) on November 15, 2045 (the “Stated Maturity”), and to pay to the registered holder hereof interest on said sum from and including the latest semi-annual interest payment date to which interest has been paid or duly made available for payment on the bonds of this series preceding the date hereof, unless the date hereof be an interest payment date to which interest is being paid, in which case from and including the date hereof, or unless the date hereof is prior to May 15, 2016 in which case from and including November 6, 2015 (or if this bond is dated between the record date for any interest payment date and such interest payment date, then from and including such interest payment date, provided, however, that if the Company shall default in payment of the interest due on such interest payment date, then from and including the next preceding semi-annual interest payment date to which interest has been paid or duly made available for payment on the bonds of this series, or if such interest payment date is May 15, 2016, from and including November 6, 2015), in each case to but excluding the next succeeding interest payment date or the date of maturity, as the case may be, at the rate per annum, until the principal hereof is paid or duly made available for payment, specified in the title of this bond, payable on May 15 and November 15 in each year.  The provisions of this bond are continued below and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.

 

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

 

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

 

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

 

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
    

 

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CONSUMERS ENERGY COMPANY

 

FIRST MORTGAGE BOND
 4.10% SERIES DUE 2045

 

The interest payable on any May 15 or November 15 will, subject to certain exceptions provided in the Indenture hereinafter mentioned, be paid to the person in whose name this bond is registered at 5:00 p.m., New York City time, on the record date, which shall be the May 1 or November 1  (whether or not such May 1 or November 1 shall be a legal holiday or a day on which banking institutions in the Borough of Manhattan, The City of New York, are authorized to close) preceding the relevant interest payment date, except that interest payable at Stated Maturity shall be paid to the person to whom the principal amount is paid.  The initial interest payment date will be May 15, 2016.  The principal of and the premium, if any, and interest on this bond shall be payable at the office or agency of the Company in the Borough of Manhattan, The City of New York, designated for that purpose, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts.

 

This bond is one of the bonds of a series designated as First Mortgage Bonds, 4.10% Series due 2045 (sometimes herein referred to as the “2045 Bonds” or the “Bonds”) issued under and in accordance with and secured by an indenture dated as of September 1, 1945, given by the Company (or its predecessor, Consumers Power Company, a Maine corporation) to City Bank Farmers Trust Company (The Bank of New York Mellon, successor) (hereinafter sometimes referred to as the “Trustee”), together with indentures supplemental thereto, heretofore or hereafter executed, to which indenture and indentures supplemental thereto (hereinafter referred to collectively as the “Indenture”) reference is hereby made for a description of the property mortgaged and pledged, the nature and extent of the security and the rights, duties and immunities thereunder of the Trustee and the rights of the holders of said bonds and of the Trustee and of the Company in respect of such security, and the limitations on such rights. By the terms of the Indenture, the bonds to be secured thereby are issuable in series which may vary as to date, amount, date of maturity, rate of interest and in other respects as provided in the Indenture.

 

Any or all of the 2045 Bonds may be redeemed by the Company at its option, in whole or in part, at any time and from time to time prior to maturity at a redemption price equal to 100% of the principal amount of such 2045 Bonds being redeemed plus, in the case of any redemption prior to the Par Call Date (as defined below), the Applicable Premium (as defined below), if any, thereon at the time of redemption, together with (at any time) accrued and unpaid interest, if any, thereon to, but not including, the redemption date.  In no event will the redemption price be less than 100% of the principal amount of the 2045 Bonds being redeemed plus accrued and unpaid interest, if any, thereon to, but not including, the redemption date.

 

“Par Call Date” means May 15, 2045.

 

“Applicable Premium” means, with respect to a 2045 Bond (or portion thereof) being redeemed at any time prior to the Par Call Date, the excess of (i) the present value at the redemption date of (A) the principal amount of such 2045 Bond (or portion thereof) being

 

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redeemed as though such 2045 Bond (or portion thereof) matured on the Par Call Date plus (B) all remaining scheduled interest payments on such 2045 Bond (or portion thereof) after such redemption date that would be due if such 2045 Bond matured on the Par Call Date (but, for the avoidance of doubt, excluding any portion of such payments of interest accrued to the redemption date), which present value shall be computed by the Company using a discount rate equal to the Treasury Rate (as defined below) plus 20 basis points, over (ii) the principal amount of such 2045 Bond (or portion thereof) being redeemed at such time.  For purposes of this definition, the present values of interest and principal payments will be determined in accordance with generally accepted principles of financial analysis.

 

“Treasury Rate” means the yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15(519) (the “Statistical Release”)) that has become publicly available at least two Business Days prior to the redemption date (or, if such Statistical Release is no longer published, any publicly available source of similar market data) most nearly equal to the then remaining average life to stated maturity of the 2045 Bonds being redeemed (assuming for this purpose that such 2045 Bonds matured on the Par Call Date); provided, however, that if the average life to stated maturity of the 2045 Bonds is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by the Company by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given.

 

If less than all of the 2045 Bonds are to be redeemed and (i) the 2045 Bonds are in global form, the interests in the 2045 Bonds to be redeemed shall be selected for redemption by The Depository Trust Company in accordance with The Depository Trust Company’s standard procedures therefor, and (ii) the 2045 Bonds are in definitive form, the Trustee shall select the 2045 Bonds to be redeemed by lot, on a pro rata basis or by another method the Trustee deems appropriate and fair.  Notice of redemption shall be delivered not less than 30 nor more than 60 days prior to the date fixed for redemption to the holders of the 2045 Bonds to be redeemed (which, as long as the 2045 Bonds are held in the book-entry only system, will be The Depository Trust Company (or its nominee) or a successor depositary (or the successor’s nominee)); provided, however, that the failure to duly deliver such notice, or any defect therein, shall not affect the validity of any proceedings for the redemption of the 2045 Bonds as to which there shall have been no such failure or defect.  On and after the date fixed for redemption (unless the Company shall default in the payment of the 2045 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 2045 Bonds or the portions thereof so called for redemption shall cease to accrue.

 

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

 

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

 

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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 2045 Bonds or any other series created after the Sixty-eighth Supplemental Indenture, to amend the Indenture to reduce the percentage of the principal amount of bonds the holders of which are required to approve any supplemental indenture (other than any supplemental indenture which is subject to the proviso contained in the immediately preceding sentence) (a) from not less than seventy-five per centum (including sixty per centum of each series affected) to not less than a majority in principal amount of the bonds at the time outstanding or (b) in case fewer than all series are affected, not less than a majority in principal amount of the bonds of all affected series, voting together.

 

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

 

{END OF FORM OF REGISTERED BOND OF THE 2045 BONDS}

 

 

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AND WHEREAS, all acts and things necessary to make the 2045 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 $250,000,000 principal amount of the 2045 Bonds, and all other bonds which shall be issued under the Indenture, as supplemented and amended from time to time, and for the purpose of securing the faithful performance and observance of all covenants and conditions therein, and in any indenture supplemental thereto, set forth, the Company has given, granted, bargained, sold, released, transferred, assigned, hypothecated, pledged, mortgaged, confirmed, set over, warranted, alienated and conveyed and by these presents does give, grant, bargain, sell, release, transfer, assign, hypothecate, pledge, mortgage, confirm, set over, warrant, alienate and convey unto The Bank of New York Mellon, as Trustee, as provided in the Indenture, and its successor or successors in the trust thereby and hereby created and to its or their assigns forever, all the right, title and interest of the Company in and to all the property, described in Section 13 hereof, together (subject to the provisions of Article X of the Indenture) with the tolls, rents, revenues, issues, earnings, income, products and profits thereof, excepting, however, the property, interests and rights specifically excepted from the lien of the Indenture as set forth in the Indenture;

 

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

 

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

 

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;

 

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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 “2045 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 2045 Bonds shall be issued in the aggregate principal amount of $250,000,000, shall mature on November 15, 2045 and shall be issued only as registered bonds without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.  The serial numbers of the 2045 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 2045 Bonds shall bear interest at the rate per annum, until the principal thereof is paid or duly made available for payment, specified in the title thereto, payable semi-annually in arrears on May 15 and November 15 in each year, commencing May 15, 2016.  Interest on the Bonds will be computed on the basis of a 360-day year consisting of twelve 30-day months.  The principal of and the premium, if any, and the interest on said bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts, at the office or agency of the Company in the City of New York, designated for that purpose.  Additional 2045 Bonds, without limitation as to amount (except as provided in the Indenture), and without the consent of the holders of the then outstanding 2045 Bonds, but with the same terms as such outstanding 2045 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 2045 Bonds would constitute a single series with such outstanding 2045 Bonds.

 

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SECTION 2.

 

SECTION 2.01.  Form of Bonds.

 

The 2045 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 2045 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 below) may direct), and registered in the name of the Depository or a nominee of the Depository, duly executed by the Company and authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the Global Bonds may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depository or its nominee as hereinafter provided.  The depository for the Global Bonds shall be The Depository Trust Company, a New York corporation, or its duly appointed successor (the “Depository”).  This Section 2.01 shall apply only to a Global Bond deposited with or on behalf of the Depository.

 

The Company shall execute and the Trustee shall, in the case of each of the 2045 Bonds in accordance with this Section 2.01, authenticate and deliver initially one or more Global Bonds that (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 2.01, Section 2.02 or Section 2.03, owners of beneficial interests in Global Bonds shall not be entitled to receive physical delivery of certificated Bonds.

 

SECTION 2.02.  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

 

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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 2.03), a Global Bond may not be transferred as a whole or in part except by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository.

 

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

 

(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

 

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Depository or its nominee or of any Agent Member, with respect to any ownership interest in the Bonds or with respect to the delivery to any Agent Member, beneficial owner or other person (other than the Depository) of any notice (including any notice of redemption) or the payment of any amount, under or with respect to such Bonds.  All notices and communications to be given to the holders and all payments to be made to holders under the Bonds shall be given or made only to or upon the order of the registered holders (which shall be the Depository or its nominee in the case of a Global Bond).  The rights of beneficial owners in any Global Bond shall be exercised only through the Depository subject to the applicable rules and procedures of the Depository.  The Trustee may rely and shall be fully protected in relying upon information furnished by the Depository with respect to its Agent Members and any beneficial owners.

 

(ii)                                                          The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Supplemental Indenture or under applicable law with respect to any transfer of any interest in any Bond (including any transfers between or among Agent Members or beneficial owners in any Global Bond) other than to require delivery of such certificates 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 2.03.  Certificated Bonds.

 

(a)                                 A Global Bond deposited with the Depository or with the Trustee as securities custodian pursuant to Section 2.01 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 2.03 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 2.03 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 2.03 shall be executed, authenticated and delivered only in denominations of $2,000 principal amount and any integral multiple of $1,000 in excess thereof and registered in such names as the Depository shall direct.

 

(c)                                  Subject to the provisions of Section 2.03(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 2045 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

 

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Company will issue 2045 Bonds in definitive form in exchange for the global securities relating to the 2045 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 2045 Bonds or portions of the 2045 Bonds represented by one or more global securities and, in that event, will issue individual 2045 Bonds in exchange for the global security or securities representing such 2045 Bonds.  Further, if the Company so specifies with respect to the 2045 Bonds, an owner of a beneficial interest in a global security representing the 2045 Bonds may, on terms acceptable to the Company and the depositary for the global security, receive individual 2045 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 2045 Bonds represented by the global security equal in principal amount to the beneficial interest, and to have the 2045 Bonds registered in its name.  2045 Bonds so issued in definitive form will be issued as registered 2045 Bonds in denominations of $2,000 and integral multiples of $1,000.

 

SECTION 3.  Any or all of the 2045 Bonds may be redeemed by the Company at its option, in whole or in part, at any time and from time to time prior to maturity, at a redemption price equal to 100% of the principal amount of such 2045 Bonds being redeemed plus, in the case of any redemption prior to the Par Call Date, the Applicable Premium (as defined below), if any, thereon at the time of redemption, together with (at any time) accrued and unpaid interest, if any, thereon to, but not including, the redemption date.  In no event will the redemption price be less than 100% of the principal amount of the 2045 Bonds being redeemed plus accrued and unpaid interest, if any, thereon to, but not including, the redemption date.

 

“Par Call Date” means May 15, 2045.

 

“Applicable Premium” means, with respect to a 2045 Bond (or portion thereof) being redeemed at any time prior to the Par Call Date, the excess of (i) the present value at the redemption date of (A) the principal amount of such 2045 Bond (or portion thereof) being redeemed as though such 2045 Bond (or portion thereof) matured on the Par Call Date plus (B) all remaining scheduled interest payments on such 2045 Bond (or portion thereof) after such redemption date that would be due if such 2045 Bond matured on the Par Call Date (but, for the avoidance of doubt, excluding any portion of such payments of interest accrued to the redemption date), which present value shall be computed by the Company using a discount rate equal to the Treasury Rate (as defined below) plus 20 basis points, over (ii) the principal amount of such 2045 Bond (or portion thereof) being redeemed at such time.  For purposes of this definition, the present values of interest and principal payments will be determined in accordance with generally accepted principles of financial analysis.

 

“Treasury Rate” means the yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15(519) (the “Statistical Release”)) that has become publicly available at least two Business Days prior to the redemption date (or, if such Statistical Release is no longer published, any publicly available source of similar market data) most nearly equal to the then remaining average life to stated maturity of the 2045 Bonds being redeemed (assuming for this purpose that such 2045 Bonds matured on the Par Call Date); provided, however, that if the average life to stated maturity of the 2045 Bonds is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the

 

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Treasury Rate shall be obtained by the Company by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given.

 

In connection with any redemption of the 2045 Bonds prior to May 15, 2045, the Company shall give the Trustee notice of the redemption price promptly after the calculation thereof and the Trustee shall not be responsible for such calculation.

 

If less than all of the 2045 Bonds are to be redeemed and (i) the 2045 Bonds are in global form, the interests in the 2045 Bonds to be redeemed shall be selected for redemption by The Depository Trust Company in accordance with The Depository Trust Company’s standard procedures therefor, and (ii) the 2045 Bonds are in definitive form, the Trustee shall select the 2045 Bonds to be redeemed by lot, on a pro rata basis or by another method the Trustee deems appropriate and fair.  Notice of redemption shall be delivered not less than 30 nor more than 60 days prior to the date fixed for redemption to the holders of the 2045 Bonds to be redeemed (which, as long as the 2045 Bonds are held in the book-entry only system, will be The Depository Trust Company (or its nominee) or a successor depositary (or the successor’s nominee)); provided, however, that the failure to duly deliver such notice, or any defect therein, shall not affect the validity of any proceedings for the redemption of the 2045 Bonds as to which there shall have been no such failure or defect.  On and after the date fixed for redemption (unless the Company shall default in the payment of the 2045 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 2045 Bonds or the portions thereof so called for redemption shall cease to accrue.

 

SECTION 4.  The 2045 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 3  hereof.

 

SECTION 5.  The Company reserves the right, without any consent, vote or other action by the holders of the 2045 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

 

14

 

rate or extend the time of payment of interest thereon, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the holder of each bond so affected, or (2) permit the creation of any lien, not otherwise permitted, prior to or on a parity with the lien of this Indenture, without the consent of the holders of all the bonds then outstanding, or (3) reduce the aforesaid percentage of the principal amount of bonds the holders of which are required to approve any such supplemental indenture, without the consent of the holders of all the bonds then outstanding. For the purposes of this Section, bonds shall be deemed to be affected by a supplemental indenture if such supplemental indenture adversely affects or diminishes the rights of holders thereof against the Company or against its property.  The Trustee may in its discretion determine whether or not, in accordance with the foregoing, bonds of any particular series would be affected by any supplemental indenture and any such determination shall be conclusive upon the holders of bonds of such series and all other series.  Subject to the provisions of Sections 16.02 and 16.03 hereof, the Trustee shall not be liable for any determination made in good faith in connection herewith.

 

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

 

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

 

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

 

15

 

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

 

SECTION 7.  Section 2.01 of the Indenture, as heretofore amended, is hereby further amended by changing the figure “$6,000,000,000” in the first sentence thereof to read “$8,000,000,000.”

 

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

 

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

 

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

 

SECTION 11.  If any interest payment date or redemption date for the Bonds or the Stated Maturity falls on a day that is not a Business Day, the interest or principal payment will be made on the next succeeding Business Day (and without any interest or other payment in respect of any such delay).  In the event the date of any notice required or permitted hereunder shall not be a Business Day, then (notwithstanding any other provision of the Indenture or of any supplemental indenture thereto) such notice need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date fixed for such notice.  “Business Day” means, with respect to Section 3 and this Section 11, any day, other than a Saturday or Sunday, on which banks generally are open in New York, New York for the conduct of substantially all of their commercial lending activities and on which interbank wire transfers can be made on the Fedwire system.

 

16

 

SECTION 12.  This Supplemental Indenture and the 2045 Bonds shall be governed by and deemed to be a contract under, and construed in accordance with, the laws of the State of Michigan, and for all purposes shall be construed in accordance with the laws of such state, except as may otherwise be required by mandatory provisions of law.

 

SECTION 13.  Detailed Description of Property Mortgaged:

 

I.

 

ELECTRIC GENERATING PLANTS AND DAMS

 

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

 

II.

 

ELECTRIC TRANSMISSION LINES

 

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

 

III.

 

ELECTRIC DISTRIBUTION SYSTEMS

 

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

 

17

 

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

 

IV.

 

ELECTRIC SUBSTATIONS, SWITCHING STATIONS AND SITES

 

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

 

V.

 

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

 

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

 

VI.

 

GAS STORAGE FIELDS

 

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

 

18

 

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

 

VII.

 

GAS TRANSMISSION LINES

 

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

 

VIII.

 

GAS DISTRIBUTION SYSTEMS

 

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

 

IX.

 

OFFICE BUILDINGS, SERVICE BUILDINGS, GARAGES, ETC.

 

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

 

19

 

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

 

X.

 

TELEPHONE PROPERTIES AND
 RADIO COMMUNICATION EQUIPMENT

 

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

 

XI.

 

OTHER REAL PROPERTY

 

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

 

ALCONA COUNTY

 

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

 

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

 

20

 

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

 

ALLEGAN COUNTY

 

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

 

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

 

ALPENA COUNTY

 

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

 

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

 

ANTRIM COUNTY

 

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

 

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

 

ARENAC COUNTY

 

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

 

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

 

21

 

BARRY COUNTY

 

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

 

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

 

BAY COUNTY

 

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

 

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

 

BENZIE COUNTY

 

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

 

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

 

BRANCH COUNTY

 

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

 

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

 

22

 

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.)

 

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.

 

23

 

CLARE COUNTY

 

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

 

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

 

CLINTON COUNTY

 

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

 

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

 

CRAWFORD COUNTY

 

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

 

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

 

EATON COUNTY

 

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

 

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

 

EMMET COUNTY

 

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

 

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

 

24

 

GENESEE COUNTY

 

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

 

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

 

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

 

GLADWIN COUNTY

 

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

 

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

 

GRAND TRAVERSE COUNTY

 

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

 

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

 

GRATIOT COUNTY

 

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

 

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

 

25

 

HILLSDALE COUNTY

 

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

 

Lot 238 of Assessors Plat of the Village of Litchfield.

 

HURON COUNTY

 

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

 

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

 

INGHAM COUNTY

 

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

 

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

 

IONIA COUNTY

 

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

 

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

 

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

 

26

 

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

 

IOSCO COUNTY

 

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

 

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

 

ISABELLA COUNTY

 

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

 

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

 

JACKSON COUNTY

 

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

 

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

 

KALAMAZOO COUNTY

 

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

 

27

 

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

 

KALKASKA COUNTY

 

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

 

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

 

KENT COUNTY

 

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

 

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

 

28

 

LAKE COUNTY

 

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

 

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

 

LAPEER COUNTY

 

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

 

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

 

LEELANAU COUNTY

 

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

 

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

 

LENAWEE COUNTY

 

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

 

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

 

LIVINGSTON COUNTY

 

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

 

Parcel 1

 

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

 

29

 

Parcel 2

 

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

 

MACOMB COUNTY

 

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

 

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

 

MANISTEE COUNTY

 

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

 

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

 

MASON COUNTY

 

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

 

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

 

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

 

30

 

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

 

MECOSTA COUNTY

 

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

 

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

 

MIDLAND COUNTY

 

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

 

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

 

MISSAUKEE COUNTY

 

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

 

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

 

MONROE COUNTY

 

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

 

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

 

31

 

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

 

MONTCALM COUNTY

 

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

 

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

 

MONTMORENCY COUNTY

 

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

 

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

 

MUSKEGON COUNTY

 

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

 

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

 

NEWAYGO COUNTY

 

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

 

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

 

OAKLAND COUNTY

 

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

 

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

 

OCEANA COUNTY

 

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

 

32

 

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

 

OGEMAW COUNTY

 

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

 

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

 

OSCEOLA COUNTY

 

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

 

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

 

OSCODA COUNTY

 

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

 

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

 

OTSEGO COUNTY

 

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

 

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

 

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.

 

33

 

PRESQUE ISLE COUNTY

 

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

 

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

 

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

 

ROSCOMMON COUNTY

 

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

 

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

 

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.

 

34

 

SANILAC COUNTY

 

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

 

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

 

SHIAWASSEE COUNTY

 

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

 

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

 

ST. CLAIR COUNTY

 

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

 

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

 

ST. JOSEPH COUNTY

 

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

 

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

 

TUSCOLA COUNTY

 

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

 

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

 

35

 

particularly described as follows: To find the place of beginning of this description commence at the N 1/4 post of said section; run thence N 89 degrees 29’ 20” E along the North line of said section 280.5 feet to the place of beginning of this description; thence continuing N 89 degrees 29’ 20” E along said North line of said section 288.29 feet; thence S 00 degrees 44’ 00” E, 1531.92 feet; thence S 89 degrees 33’ 30” W, 568.79 feet to the North and South 1/4 line of said section; thence N 00 degrees 44’ 00” W along said North and South 1/4 line of said section 211.4 feet; thence N 89 degrees 29’ 20” E, 280.5 feet; thence N 00 degrees 44’ 00” W, 1320 feet to the North line of said section and the place of beginning.

 

WASHTENAW COUNTY

 

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

 

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

 

WAYNE COUNTY

 

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

 

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

 

36

 

with said North section line 450 feet, thence North parallel with said West section line 350 feet to the place of beginning.

 

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

 

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

 

37

 

	
 
    	
CONSUMERS   ENERGY COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
(SEAL)
    	
By:
    	
/s/   DV Rao
    
	
 
    	
 
    	
Venkat   D. Rao
    
	
Attest:
    	
 
    	
Vice   President and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Georgine R. Hyden
    	
 
    	
 
    
	
Georgine   R. Hyden
    	
 
    	
 
    
	
Assistant   Secretary
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed,   sealed and delivered
    	
 
    	
 
    
	
by   CONSUMERS ENERGY COMPANY
    	
 
    	
 
    
	
in   the presence of
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Kimberly C. Wilson
    	
 
    	
 
    
	
Kimberly   C. Wilson
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Denise J. Lehrke
    	
 
    	
 
    
	
Denise   J. Lehrke
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
STATE   OF MICHIGAN
    	
)
    	
 
    	
 
    
	
 
    	
   ss.
    	
 
    	
 
    
	
COUNTY   OF JACKSON
    	
)
    	
 
    	
 
    

 

The foregoing instrument was acknowledged before me this 6th day of November, 2015, by Venkat D. Rao, 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:06/14/16
    
	
 
    	
Acting   in the County of Jackson
    

 

S-1

 

	
 
    	
THE   BANK OF NEW YORK MELLON,
    
	
 
    	
                                                      AS   TRUSTEE
    
	
 
    	
 
    
	
(SEAL)
    	
By:
    	
/s/ Laurence J. O’Brien
    
	
 
    	
 
    	
Laurence   J. O’Brien
    
	
Attest:
    	
 
    	
Vice   President
    
	
 
    	
 
    
	
/s/ Latoya S. Elvin
    	
 
    	
 
    
	
Latoya   S. Elvin
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signed,   sealed and delivered
    	
 
    
	
by   THE BANK OF NEW YORK MELLON
    	
 
    
	
in   the presence of
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Frank Gallagher
    	
 
    	
 
    
	
Frank Gallagher
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ John D. Bowman
    	
 
    	
 
    
	
John D. Bowman
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
STATE   OF NEW JERSEY
    	
)
    	
 
    
	
 
    	
   ss.
    	
 
    
	
COUNTY   OF PASSAIC
    	
)
    	
 
    
					

 

The foregoing instrument was acknowledged before me this 6th day of November, 2015, by Laurence J. O’Brien, a Vice President of THE BANK OF NEW YORK MELLON, as Trustee, a New York banking corporation, on behalf of the bank.

 

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

 

	
Prepared by:
    	
When recorded, return   to:
    
	
Kimberly C. Wilson
    	
Consumers Energy   Company
    
	
One Energy Plaza,   EP11-210
    	
Business Services Real   Estate Dept.
    
	
Jackson, MI 49201
    	
Attn: Carrie Main,   EP7-437
    
	
 
    	
One Energy Plaza
    
	
 
    	
Jackson, MI 49201
    

 

S-2

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