Document:

EXHIBIT 10.1

 

Exhibit
10.1

 

 

SUBSCRIPTION
# _____

 

STAR
MOUNTAIN RESOURCES, INC.

 

Subscription
Agreement

 

The
undersigned “Subscriber”, on the terms and conditions herein set forth, hereby irrevocable submits this subscription
agreement (the “Subscription Agreement”) to STAR MOUNTAIN RESOURCES, INC., a Nevada corporation (the
“Company”), in connection with a private offering by the Company (the “Offering”) to raise
additional working capital of up to US$2,000,000[1] (the “Offering Amount”) through the sale to accredited
investors only of up to 4,000,000 units of the Company’s securities described below (the “Units”) at $0.50 per
Unit. Each Unit is comprised of the following:

 

	 	(a)	One share of the Company’s Series C Preferred Stock as
    provided for in the form of Designations, Rights and Preferences of Series C Preferred Stock attached hereto as Exhibit A
    (the “Series C Preferred Stock”), 
	 	 	 
	 	(b)	One share of the Company’s common stock, 
	 	 	 
	 	(c)	One Series A common stock purchase warrant entitling the holder
    to purchase an additional share of the Company’s common stock at an exercise price of $0.75 per share for a period of
    two years from the issuance date thereof as provided for in the Form of Series A Warrant attached hereto as Exhibit B (the
    “A Warrant”), and 
	 	 	 
	 	(d)	One Series B common stock purchase warrant entitling the holder
    to purchase one share of the Company’s common stock at an exercise price of $1.50 per share for a period of three years
    from the issuance date thereof as provided for in the Form of Series B Warrant attached hereto as Exhibit C (the “B
    Warrant”).

 

Furthermore,
Subscribers will be entitled to Piggy-Back Registration Rights as provided for in the Piggy-Back Registration Rights Agreement
attached hereto as Exhibit D.

 

1.
Subscription for the Purchase of Units.

 

THE
UNDERSIGNED hereby subscribes to purchase _____________ Units of the Company’s securities at $.50 per Unit for a total
subscription of $______________. In this regard, the Investor agrees to forward payment in the amount of $_________________.

 

Please
issue a check or wire transfer payable to:

 

LEGAL
AND COMPLIANCE, LLC IOTA TRUST ACCOUNT

Memo:
SMRS Series C Unit Offering

 

 

[1]
At the sole discretion of our Board of Directors we reserve the right to accept up to an additional $500,000 (1,000,000
Units) in the event this offering is over subscribed.

 

    	1

    	 	 	 

    

 

(a)
Deliver the check along with the signed Subscription Agreement to:

 

LEGAL
AND COMPLIANCE, LLC

330
Clematis Street, Suite 217

West
Palm Beach, FL 33401

 

(b)
Alternatively, please deliver the funds via wire transfer (as noted below) and mail the signed subscription agreement to the address
noted in 1 (a) above:

 

	Wells
    Fargo Bank, N.A.
	420 Montgomery
    

    San Francisco, CA 94104
	ABA# 121000248
	For Credit To:
    Legal & Compliance, LLC IOTA Trust Account
	Account Number
    

 

Whereas,
in connection with its purchase the undersigned represents and warrants to the Company the following: The Company’s private
offering of common stock is being made to “accredited” investors within the meaning of Rule 506 of Regulation
D promulgated by the Securities Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”).

 

1.2
Offer to Purchase. Subscriber hereby irrevocably offers to purchase the Units and tenders herewith the total price noted above.
Subscriber recognizes and agrees that (i) this subscription is irrevocable and, if Subscriber is a natural person, shall survive
Subscriber’s death, disability or other incapacity, and (ii) the Company has complete discretion to accept or to reject
this Subscription Agreement in its entirety and shall have no liability for any rejection of this Subscription Agreement. This
Subscription Agreement shall be deemed to be accepted by the Company only when it is executed by the Company. However, in the
event the Company does not receive accepted subscriptions for the Offering Amount by October 31, 2015, the Company shall return
to the Subscriber, the Subscriber’s subscription funds, without interest.

 

1.3
Effect of Acceptance. Subscriber hereby acknowledges and agrees that on the Company’s acceptance of this Subscription
Agreement, it shall become a binding and fully enforceable agreement between the Company and the Subscriber. As a result, upon
acceptance by the Company of this Subscription Agreement and subject to the Company receiving accepted subscriptions for the Offering
Amount, Subscriber will become the record and beneficial holder of the Units (and the preferred stock, common stock and warrants
represented thereby) and the Company will be entitled to receive the purchase price of the Units as specified herein.

 

2.
Representation as to Investor Status.

 

2.1
Accredited Investor. In order for the Company to sell the common stock in conformance with state and federal securities laws,
the following information must be obtained regarding Subscriber’s investor status. Please initial each item applicable
to you as an investor in the Company.

 

_____
(a) A natural person whose net worth, either individually or jointly with such person’s spouse, at the time of Subscriber’s
purchase, exceeds $1,000,000;

 

_____
(b) A natural person who had an individual income in excess of $200,000, or joint income with that person’s spouse in excess
of $300,000, in each of the two most recent years and reasonably expects to reach the same income level in the current year;

 

    	2

    	 	 	 

    

 

_____
(c) A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined
in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity;

 

_____
(d) A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”);

 

_____
(e) An insurance company as defined in section 2(13) of the Exchange Act;

 

_____
(f) An investment company registered under the Investment Company Act of 1940 or a business development company as defined in
Section 2(a)(48) of that Act;

 

_____
(g) A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the
Small Business Investment Act of 1958;

 

_____
(h) A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state, or
its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

 

_____
(i) An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision
is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance
company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed
plan, with investment decisions made solely by persons that are accredited investors;

 

_____
(j) A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

 

_____
(k) An organization described in Section 501(c)(3) of the Internal Revenue Code, or a corporation, business trust or partnership,
not formed for the specific purpose of acquiring Series B Notes and Warrants, with total assets in excess of $5,000,000;

 

_____
(l) A director or executive officer of the Company;

 

_____
(m) A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring Series B Notes and Warrants,
whose purchase is directed by a sophisticated person who has such knowledge and experience in financial and business matters that
such person is capable of evaluating the merits and risks of investing in the Company;

 

_____
(n) An entity in which all of the equity owners qualify under any of the above subparagraphs.

 

_____
(o) Subscriber does not qualify under any of the investor categories set forth in (a) through (l) above.

 

2.2
Net Worth. The term “net worth” means the excess of total assets over total liabilities (including personal and
real property, but excluding the estimated fair market value of a person’s primary home).

 

2.3
Income. In determining individual “income,” Subscriber should add to Subscriber’s individual taxable adjusted
gross income (exclusive of any spousal income) any amounts attributable to tax exempt income received, losses claimed as a limited
partner in any limited partnership, deductions claimed for depletion, contributions to an IRA or Keogh retirement plan, alimony
payments, and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income.

 

    	3

    	 	 	 

    

 

2.4
Type of Subscriber. Indicate the form of entity of Subscriber:

 

	[  ]	Individual   	[  ]
    	Limited
    Partnership
	[  ]	Corporation   	[  ]
    	General
    Partnership
	[  ]	Revocable
    Trust       	 
	[  ]	Other
    Type of Trust (indicate type): _____________________
	[  ]	Other
    (indicate form of organization): _____________________

 

(a)
If Subscriber is not an individual, indicate the approximate date Subscriber entity was formed: _____________________.

 

(b)
If Subscriber is not an individual, initial the line below which correctly describes the application of the following
statement to Subscriber’s situation: Subscriber (i) was not organized or reorganized for the specific purpose of acquiring
the shares of common stock of the Company and (ii) has made investments prior to the date hereof, and each beneficial owner thereof
has and will share in the investment in proportion to his or her ownership interest in Subscriber.

 

		 	True
		 	False

 

If
the “False” box is checked, each person participating in the entity will be required to fill out a Subscription Agreement.

 

2.5
Other Representations and Warranties of Subscriber. Subscriber hereby represents and warrants to the Company as follows:

 

(a)
The Units (and the shares of preferred stock, common stock and common stock purchase warrants represented thereby) are being acquired
for Subscriber’s own account for investment, with no intention by Subscriber to distribute or sell any portion thereof within
the meaning of the Securities Act, and will not be transferred by Subscriber in violation of the Securities Act or the then applicable
rules or regulations thereunder. No one other than Subscriber has any interest in or any right to acquire the Units. Subscriber
understands and acknowledges that the Company will have no obligation to recognize the ownership, beneficial or otherwise, of
the shares of common stock by anyone but Subscriber.

 

(b)
Subscriber’s financial condition is such that Subscriber is able to bear the risk of holding the Units that Subscriber may
acquire pursuant to this Agreement, for an indefinite period of time, and the risk of loss of Subscriber’s entire investment
in the Company.

 

(c)
Subscriber has received, has read and understood and is familiar with this Subscription Agreement, the Units and the common stock
and the common stock purchase warrants.

 

(d)
Subscriber has been furnished with all documents and materials relating to the business, finances and operations of the Company
and its subsidiaries and information that Subscriber requested and deemed material to making an informed investment decision regarding
its purchase of the Units. Subscriber has been afforded the opportunity to review such documents and materials and the information
contained therein. Subscriber has been afforded the opportunity to ask questions of the Company and its management. Subscriber
understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects
of the Company’s and its subsidiaries’ business and prospects which the Company believes to be material, but were
not necessarily a thorough or exhaustive description, and except as expressly set forth in this Subscription Agreement, the Company
makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty
of any kind with respect to any information provided by any entity other than the Company. Some of such information may include
projections as to the future performance of the Company and its subsidiaries, which projections may not be realized, may be based
on assumptions which may not be correct and may be subject to numerous factors beyond the Company’s and its subsidiaries’
control. Additionally, Subscriber understands and represents that he is purchasing the Units notwithstanding the fact that the
Company and its subsidiaries, if any, may disclose in the future certain material information that the Subscriber has not received,
including the financial results of the Company and its subsidiaries for their current fiscal quarters. Neither such inquiries
nor any other due diligence investigations conducted by such Subscriber shall modify, amend or affect such Subscriber’s
right to rely on the Company’s representations and warranties, if any, contained in this Subscription Agreement. Subscriber
has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect
to its investment in the common stock.

 

    	4

    	 	 	 

    

 

(e)
No representations or warranties have been made to Subscriber by the Company, or any representative of the Company, or any securities
broker/dealer, other than as set forth in this Subscription Agreement.

 

(f)
Subscriber has investigated the acquisition of the Units to the extent Subscriber deemed necessary or desirable and the Company
has provided Subscriber with any reasonable assistance Subscriber has requested in connection therewith.

 

(g)
Subscriber, either personally, or together with his advisors (other than any securities broker/dealers who may receive compensation
from the sale of any of the Units), has such knowledge and experience in financial and business matters that Subscriber is capable
of evaluating the merits and risks of purchasing the Units and of making an informed investment decision with respect thereto.

 

(h)
Subscriber is aware that Subscriber’s rights to transfer the Units (or the common stock thereby represented) is restricted
by the Securities Act and applicable state securities laws, and Subscriber will not offer for sale, sell or otherwise transfer
the Units (or the underlying common stock and purchase warrants) without registration under the Securities Act and qualification
under the securities laws of all applicable states, unless such sale would be exempt therefrom.

 

(i)
Subscriber understands and agrees that the Units (or the underlying common stock or common stock purchase warrants) it acquires
have not been registered under the Securities Act or any state securities act in reliance on exemptions therefrom and that the
Company has no obligation to register any of the Units (and underlying common stock represented thereby) offered by the Company
as set forth in the Accredited Investor Memorandum of Terms dated September 29, 2015 (the “Memorandum”). Subscriber
further acknowledges that Subscriber is purchasing the Units after having been provided with the Memorandum.

 

(j)
The Subscriber has had an opportunity to ask questions of, and receive answers from, representatives of the Company concerning
the terms and conditions of this investment and all such questions have been answered to the full satisfaction of the undersigned.
Subscriber understands that no person other than the Company has been authorized to make any representation and if made, such
representation may not be relied on unless it is made in writing and signed by the Company. The Company has not, however, rendered
any investment advice to the undersigned with respect to the suitability

 

(k)
Subscriber understands that the certificates or other instruments representing the securities included in the Units (the “Securities”),
as well as the common stock issuable thereby shall bear a restrictive legend in substantially the following form (and a stop transfer
order may be placed against transfer of such stock certificates):

 

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAWS OF ANY STATE AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO ANY EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER AND UNDER APPLICABLE
STATE LAW, THE AVAILABILITY OF WHICH MUST BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

 

    	5

    	 	 	 

    

 

(l)
Subscriber also acknowledges and agrees to the following:

 

(i)
An investment in the Units is highly speculative and involves a high degree of risk of loss of the entire investment in the Company;
and

 

(ii)
There is no assurance that a public market for the securities will be available and that, as a result, Subscriber may not be able
to liquidate Subscriber’s investment in the Securities should a need arise to do so.

 

(m)
Subscriber is not dependent for liquidity on any of the amounts Subscriber is investing in the Units.

 

(n)
Subscriber’s address set forth below is his or her correct residence address.

 

(o)
Subscriber has full power and authority to make the representations referred to herein, to purchase the Units and to execute and
deliver this Subscription Agreement.

 

(p)
Subscriber understands that the foregoing representations and warranties are to be relied upon by the Company as a basis for the
exemptions from registration and qualification of the sale of the Units under the federal and state securities laws and for other
purposes.

 

The
foregoing representations and warranties are true and accurate as of the date hereof and shall survive such date. If any of the
above representations and warranties shall cease to be true and accurate prior to the acceptance of this Subscription Agreement,
Subscriber shall give prompt notice of such fact to the Company by telegram, or facsimile or e-mail, specifying which representations
and warranties are not true and accurate and the reasons therefor.

 

3.
Indemnification. Subscriber acknowledges that Subscriber understands the meaning and legal consequences of the representations
and warranties made by Subscriber herein, and that the Company is relying on such representations and warranties in making the
determination to accept or reject this Subscription Agreement. Subscriber hereby agrees to indemnify and hold harmless the Company
and each employee and agent thereof from and against any and all losses, damages or liabilities due to or arising out of a breach
of any representation or warranty of Subscriber contained in this Subscription Agreement.

 

4.
Transferability. Subscriber agrees not to transfer or assign this Subscription Agreement, or any interest herein, and further
agrees that the assignment and transferability of the Units acquired pursuant hereto shall be made only in accordance with applicable
federal and state securities laws.

 

5.
Termination of Agreement; Return of Funds; Minimum Offering Amount. In the event that, for any reason, this Subscription Agreement
is rejected in its entirety by the Company, this Subscription Agreement shall be null and void and of no further force and effect,
and no party shall have any rights against any other party hereunder. In the event that the Company rejects this Subscription
Agreement, the Company shall promptly return or cause to be returned to Subscriber any money tendered hereunder without interest
or deduction.

 

Funds
from accepted subscriptions shall be held in an escrow account with Legal & Compliance, LLC, 330 Clematis Street, Suite 217,
West Palm Beach, FL 33401 until the Offering Amount has been received, at which time the Company then can access the subscription
proceeds.

 

    	6

    	 	 	 

    

 

6.
Notices. All notices or other communications given or made hereunder shall be in writing and shall be delivered or mailed
by registered or certified mail, return receipt requested, postage prepaid, or delivered by, facsimile or e-mail to Subscriber
at the address set forth below and to the Company at the address set forth on the first page of this Agreement, or at such other
place as the Company may designate by written notice to Subscriber.

 

7.
Amendments. Neither this Subscription Agreement nor any term hereof may be changed, waived, discharged or terminated except
in a writing signed by Subscriber and the Company.

 

8.
Governing Law. This Subscription Agreement and all amendments hereto shall be governed by and construed in accordance with
the laws of the State of Nevada.

 

9.
Headings. The headings in this Subscription Agreement are for convenience of reference, and shall not by themselves determine
the meaning of this Subscription Agreement or of any part hereof.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	7

    	 	 	 

    

 

INDIVIDUALS

 

In
witness whereof, the parties hereto have executed this Agreement as of the dates set forth below.

 

Dated:
_____________, 2015.

 

	 	Signature(s):
    	________________________________
	 	 	 
	 	 	________________________________
	 	 	 
	 	Name
    (Please Print): 	________________________________
	 	 	 
	 	Residence
    Address: 	________________________________
	 		 
	 	 	________________________________
	 	 	 
	 	Phone
    Number: 	(______) _______-_________________
	 	 	 
	 	Cellular
    Number: 	(______) _______-_________________
	 	 	 
	 	Social
    Security Number:	_________________
	 	Email
    address:	________________@_______________

 

ACCEPTANCE

 

	 	STAR
    MOUNTAIN RESOURCES, INC.
	 	a
    Nevada corporation 
	 	 	 
	Date:
    _____________, 2015.	 	 
	 	 	 
	 	By:	
	 	 	Joseph Marchal,
    Chairman & CEO

 

    	8

    	 	 	 

    

 

CORPORATIONS,
PARTNERSHIPS, TRUSTS OR OTHER ENTITIES

 

In
witness whereof, the parties hereto have executed this Agreement as of the dates set forth below.

 

Dated:
_____________, 2015.

 

	 	Name
    of Purchaser (Please Print): 	________________________________
	 	 	 
	 	By:
    	________________________________
	 	 	 
	 	Name
    (Please Print):	________________________________
	 	 	 
	 	Title	________________________________
	 	 	 
	 	Address:
    	________________________________
	 	 	 
	 	Phone
    Number:	(______)
    _______-___________
	 	 	 
	 	Cellular
    Number:	(______)
    _______-___________
	 	 	 
	 	Taxpayer
    ID Number:	________________________________
	 	 	 
	 	Email
    address:	________________@__________________________

 

ACCEPTANCE

 

	 	STAR
    MOUNTAIN RESOURCES, INC.
	 	a
    Nevada corporation 
	 	 	 
	Date: _____________,
    2015.	 	 
	 	 	 
	 	By:
    	
	 	 	Joseph Marchal,
    Chairman & CEO

 

    	9

    	 	 	 

    

 

EXHIBIT
A

 

CERTIFICATE
OF DESIGNATIONS, RIGHTS AND PREFERENCES, RIGHTS AND LIMITATIONS OF SERIES C PREFERRED STOCK

 

Section
1. Definitions. For the purposes hereof, the following terms shall have the following meanings:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 of the Securities Act.

 

“Arizona
Courts” shall have the meaning set forth in Section 7(d).

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the Company’s common stock, par value $0.001 per share, and stock of any other class of securities
into which such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Common Stock.

 

“Conversion
Date” shall have the meaning set forth in Section 6(a).

 

“Conversion
Rate” shall have the meaning set forth in Section 6(b).

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Series C Preferred
in accordance with the terms hereof.

 

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

 

“Holder”
shall have the meaning given such term in Section 2.

 

“Junior
Securities” means the Common Stock and all other Common Stock Equivalents of the Company other than those securities
which are explicitly senior or pari passu to the Series C Preferred in dividend rights or liquidation preference.

 

“Liquidation”
shall have the meaning set forth in Section 4.

 

“Notice
of Conversion” shall have the meaning set forth in Section 6(a).

 

    	10

    	 	 	 

    

 

“Original
Issue Date” means the date of the first issuance of any shares of the Series C Preferred regardless of the number of
transfers of any particular shares of Series C Preferred and regardless of the number of certificates which may be issued to evidence
such Series C Preferred.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Series
C Preferred” shall have the meaning set forth in Section 2.

 

“Securities”
means the Series C Preferred and the Underlying Shares.

 

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

 

“Senior
Securities” means the shares of capital stock designated as Series A Preferred Stock and up to $30,000,000 of principal
amount of debt that may be issued by the Company to finance its working capital requirements.

 

“Share
Delivery Date” shall have the meaning set forth in Section 4(c).

 

“Stated
Value” shall have the meaning set forth in Section 2, as the same may be increased pursuant to Section 3.

 

“Trading
Day” means a day on which the New York Stock Exchange is open for business.

 

“Transfer
Agent” means a transfer agent to be appointed by the Company and any successor transfer agent of the Company.

 

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion of the Series C Preferred in accordance
with the terms of this Certificate of Designation.

 

Section
2. Designation, Amount and Par Value. The series of preferred stock shall be designated as its Series C Preferred Stock
(the “Series C Preferred”) and the number of shares so designated shall be up to 5,000,000 (which shall not
be subject to increase without the written consent of all of the holders of the Series C Preferred (each, a “Holder”
and collectively, the “Holders”). Each share of Series C Preferred shall have a par value of $0.001 per share
and a stated value equal to $0.50 per share (the “Stated Value”).

 

Section
3. INTENTIONALLY DELETED.

 

Section
4. Voting Rights. Except as otherwise provided herein or as otherwise required by law, holders of Series C Preferred
shall be entitled to 10 votes per share on matters submitted to a vote of the stockholders of the Company. Also, as long as any
shares of Series C Preferred are outstanding, the Company shall not, without the affirmative vote of all of the Holders of the
then outstanding shares of the Series C Preferred, alter or change adversely the powers, preferences or rights given to the Series
C Preferred or alter or amend this Certificate of Designation.

 

    	11

    	 	 	 

    

 

Section
5. Liquidation. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary (a
“Liquidation”), the Holders shall be entitled to receive out of the assets, whether capital or surplus, of
the Company an amount equal to the par value of the Series C Preferred and any other fees or liquidated damages then due and owing
thereon under this Certificate of Designation, for each share of Series C Preferred after any distribution or payment made to
Senior Securities and before any distribution or payment shall be made to the holders of any Junior Securities, and if the assets
of the Company shall be insufficient to pay in full such amounts, then the entire assets to be distributed to the Holders shall
be ratably distributed among the Holders in accordance with the respective amounts that would be payable on such shares if all
amounts payable thereon were paid in full.

 

Section
6. Conversion and Redemption.

 

a)
Conversions at Option of Holder. Each share of Series C Preferred shall be convertible, at any time after six (6) months
after the date of issuance, and from time to time from and thereafter at the option of the Holder thereof, into that number of
shares of Common Stock determined by multiplying the number of shares of Series C Preferred by the Conversion Rate. Holders shall
effect conversions by providing the Company with the form of conversion notice attached hereto as Annex A (a “Notice
of Conversion”). Each Notice of Conversion shall specify the number of shares of Series C Preferred to be converted,
the number of shares of Series C Preferred owned prior to the conversion at issue, the number of shares of Series C Preferred
owned subsequent to the conversion at issue and the date on which such conversion is to be effected, which date may not be prior
to the date the applicable Holder delivers by facsimile such Notice of Conversion to the Company (such date, the “Conversion
Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such
Notice of Conversion to the Company is deemed delivered hereunder. No ink-original Notice of Conversion shall be required, nor
shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. The
calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest or mathematical error.
To effect conversions of shares of Series C Preferred, a Holder shall not be required to surrender the certificate(s) representing
the shares of Series C Preferred to the Company unless all of the shares of Series C Preferred represented thereby are so converted,
in which case such Holder shall deliver the certificate representing such shares of Series C Preferred promptly following the
Conversion Date at issue. Shares of Series C Preferred converted into Common Stock or redeemed in accordance with the terms hereof
shall be canceled and shall not be reissued.

 

b)
Conversion Rate. The conversion rate for the Series C Preferred shall equal to one-half (1⁄2 ) share of common stock
per one (1) share of Series C Preferred Stock, subject to adjustment herein (the “Conversion Rate”).

 

c)
Mechanics of Conversion

 

i.
Delivery of Conversion Shares Upon Conversion. Not later than three (3) Trading Days after each Conversion Date (the “Share
Delivery Date”), the Company shall deliver, or cause to be delivered, to the converting Holder the number of Conversion
Shares being acquired upon the conversion of the Series C Preferred which, on or after the earlier of (i) the twelve month anniversary
of the Original Issue Date or (ii) the Effective Date, shall be free of restrictive legends and trading restrictions. If the Common
Stock is listed or quoted for public trading, the Company shall deliver the Conversion Shares required to be delivered by the
Company under this Section 6 electronically through the Depository Trust Company or another established clearing corporation performing
similar functions.

 

    	12

    	 	 	 

    

 

ii.
Failure to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered
to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice
to the Company at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the
Company shall promptly return to the Holder any original Series C Preferred certificate delivered to the Company and the Holder
shall promptly return to the Company the Conversion Shares issued to such Holder pursuant to the rescinded Conversion Notice.

 

iii.
Obligation Absolute. The Company’s obligation to issue and deliver the Conversion Shares upon conversion of Series
C Preferred in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by a Holder
to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person
or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by such Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by such
Holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company
to such Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery
shall not operate as a waiver by the Company of any such action that the Company may have against such Holder. In the event a
Holder shall elect to convert any or all of the Series C Preferred, the Company may not refuse conversion based on any claim that
such Holder or anyone associated or affiliated with such Holder has been engaged in any violation of law, agreement or for any
other reason, unless an injunction from a court, on notice to Holder, restraining and/or enjoining conversion of all or part of
the Series C Preferred of such Holder shall have been sought and obtained, and the Company posts a surety bond for the benefit
of such Holder in the amount of 150% of the par value of the Series C Preferred which is subject to the injunction, which bond
shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall
be payable to such Holder to the extent it obtains judgment. In the absence of such injunction, the Company shall issue Conversion
Shares and, if applicable, cash, upon a properly noticed conversion.

 

iv.
Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available
out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Series C Preferred,
each as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the
Holder (and the other holders of the Series C Preferred), not less than such aggregate number of shares of the Common Stock as
shall be issuable (taking into account the adjustments and restrictions of Section 6) upon the conversion of the then outstanding
shares of Series C Preferred. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue,
be duly authorized, validly issued, fully paid and nonassessable.

 

v.
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of
the Series C Preferred. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion,
the Company shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Conversion Rate or round up to the next whole share.

 

    	13

    	 	 	 

    

 

vi.
Transfer Taxes and Expenses. The issuance of Conversion Shares on conversion of this Series C Preferred shall be made without
charge to any Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such
Conversion Shares, provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any such Conversion Shares upon conversion in a name other than that of the Holders of
such shares of Series C Preferred and the Company shall not be required to issue or deliver such Conversion Shares unless or until
the Person or Persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established
to the satisfaction of the Company that such tax has been paid. The Company shall pay all Transfer Agent fees required for same-day
processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation
performing similar functions) required for same-day electronic delivery of the Conversion Shares.

 

d)
Call for Redemption by Company. Commencing at any time after the Original Issue Date, the Company shall have the right,
upon 10 days’ notice to the Holder (the “Redemption Notice”), to redeem all of the then outstanding Series C
Preferred at a price equal to the Stated Value (the “Redemption Price”), on the date set forth in the Redemption Notice,
but in no event earlier than 30 days following the date of the receipt by the Holder of the Redemption Notice (the “Redemption
Date”). The Holder may convert this Series C Preferred into Common Stock at the Conversion Rate at any time prior to the
Redemption Date. Any portion of this Series C Preferred not exercised by 5:30 p.m. (Pacific time) on the Redemption Date shall
no longer be exercisable and shall be returned to the Company (and, if not so returned, shall automatically be deemed canceled),
and the Company, upon its receipt of the unexercised portion of this Series C Preferred, shall issue therefore in full and complete
satisfaction of its obligations under such remaining portion of this Series C Preferred to the Holder an amount equal to the number
of shares of Common Stock then issuable hereunder multiplied by the Redemption Price. The Redemption Price shall be mailed to
such Holder at its address of record, and the Series C Preferred shall be canceled.

 

Section
6. Certain Adjustments.

 

a)
Stock Dividends and Stock Splits. If the Company, at any time while this Series C Preferred is outstanding: (i) pays a
stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock
or any other Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the
Company upon conversion of this Series C Preferred), (ii) subdivides outstanding shares of Common Stock into a larger number of
shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of
shares, or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company,
then the Conversion Rate shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock
(excluding any treasury shares of the Company) outstanding immediately before such event, and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section 6(a)
shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

    	14

    	 	 	 

    

 

 

b)
Calculations. All calculations under this Section 6 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 6, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued
and outstanding.

 

c)
Notice to the Holders.

 

i.
 Adjustment to Conversion Rate. Whenever the Conversion Rate is adjusted pursuant to any provision of this Section 6, the
Company shall promptly deliver to each Holder a notice setting forth the Conversion Rate after such adjustment and setting forth
a brief statement of the facts requiring such adjustment.

 

ii.
Notice to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for
or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a
party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed
at each office or agency maintained for the purpose of conversion of this Series C Preferred, and shall cause to be delivered
to each Holder at its last address as it shall appear upon the stock books of the Company, at least twenty (20) calendar days
prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to
be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the
date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights
or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share
exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of
record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice
or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified
in such notice.

 

d)
Piggyback Registration Rights. The Holder shall have the registration rights as set forth in Exhibit A.

 

    	15

    	 	 	 

    

 

Section
7. Miscellaneous.

 

a)
Notices. Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without
limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized
overnight courier service, addressed to the Company, at the address set forth above Attention: Donna Moore, or such other address
as the Company may specify for such purposes by notice to the Holders delivered in accordance with this Section 7. Any and all
notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally,
by facsimile, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number or
address of such Holder appearing on the books of the Company, or if no such facsimile number or address appears on the books of
the Company, at the principal place of business of such Holder. Any notice or other communication or deliveries hereunder shall
be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number set forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next
Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number
set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day,
(iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or
(iv) upon actual receipt by the party to whom such notice is required to be given.

 

b)
Absolute Obligation. Except as expressly provided herein, no provision of this Certificate of Designation shall alter or
impair the obligation of the Company, which is absolute and unconditional, to pay liquidated damages, as applicable, on the shares
of Series C Preferred at the time, place, and rate, and in the coin or currency, herein prescribed.

 

c)
Lost or Mutilated Series C Preferred Certificate. If a Holder’s Series C Preferred certificate shall be mutilated,
lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a
mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the
shares of Series C Preferred so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or
destruction of such certificate, and of the ownership hereof reasonably satisfactory to the Company.

 

d)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Certificate
of Designation shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without
regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation,
enforcement and defense of the transactions contemplated by any Holder (whether brought against a party hereto or its respective
Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting
in Maricopa County, Arizona (the “Arizona Courts”). Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the Arizona Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement of any of the rights of the Holders), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of such Arizona Courts, or such Arizona Courts are improper or inconvenient venue for such proceeding. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at
the address in effect for notices to it under this Certificate of Designation and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Certificate
of Designation or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions
of this Certificate of Designation, then the prevailing party in such action or proceeding shall be reimbursed by the other party
for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such
action or proceeding.

 

    	16

    	 	 	 

    

 

e)
Waiver. Any waiver by the Company or a Holder of a breach of any provision of this Certificate of Designation shall not
operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this
Certificate of Designation or a waiver by any other Holders. The failure of the Company or a Holder to insist upon strict adherence
to any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive that party
(or any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this Certificate
of Designation on any other occasion. Any waiver by the Company or a Holder must be in writing.

 

f)
Severability. If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of
this Certificate of Designation shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it
shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount
deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall
automatically be lowered to equal the maximum rate of interest permitted under applicable law.

 

g)
Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day.

 

h)
Headings. The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation
and shall not be deemed to limit or affect any of the provisions hereof.

 

i)
Status of Converted or Redeemed Series C Preferred. If any shares of Series C Preferred shall be converted, redeemed or
reacquired by the Company, such shares shall resume the status of authorized but unissued shares of preferred stock and shall
no longer be designated as Series C Preferred.

 

*********************

 

    	17

    	 	 	 

    

 

ANNEX
A

 

NOTICE
OF CONVERSION

 

(To
be Executed by the Registered Holder in order to Convert Shares of Series C Preferred Stock)

 

The
undersigned hereby elects to convert the number of shares of Series C Convertible Preferred Stock indicated below into shares
of common stock, par value $0.001 per share (the “Common Stock”), of Star Mountain Resources, Inc., a Nevada
corporation (the “Company”), according to the conditions hereof, as of the date written below. If shares of
Common Stock are to be issued in the name of a Person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect thereto and is delivering herewith such certificates and opinions as may be required by the Company. No fee
will be charged to the Holders for any conversion, except for any such transfer taxes.

 

Conversion
calculations:

 

	Date
                                         to Effect Conversion: _____________________________________________

         

	Number
                                         of shares of Series C Preferred owned prior to Conversion: _______________

         

	Number
                                         of shares of Series C Preferred to be Converted: ________________________

         

	Number
                                         of shares of Common Stock to be Issued: ___________________________

         

	Applicable
                                         Conversion Rate:____________________________________________

         

	Number
                                         of shares of Series C Preferred subsequent to Conversion: ________________

         

	Address
                                         for Delivery: ______________________

         

 

	 	[HOLDER]
	 	 	 
	 	By:	
	 		Name:
	 		Title:

 

    	18

    	 

    

 

EXHIBIT
A

 

REGISTRATION
RIGHTS

 

The
shares of the STAR MOUNTAIN RESOURCES, INC., a Nevada corporation’s Common Stock issued upon conversion of the Series C
Preferred will be deemed “Registrable Securities” subject to the provisions of this Exhibit 3. All capitalized terms
used but not defined in this Exhibit 3 shall have the meanings ascribed to such terms in the Certificate of Designations for Series
C Preferred Stock to which this Exhibit is attached.

 

1.
Piggy-Back Registration.

 

1.1
Piggy-Back Rights. If at any time on or after the Original Issue Date the Company proposes to file any Registration Statement
under the Securities Act of 1933, as amended (the “1933 Act”) (a “Registration Statement”) with respect
to any offering of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into,
equity securities, by the Company for its own account or for shareholders of the Company for their account (or by the Company
and by shareholders of the Company), other than a Registration Statement (i) filed in connection with any employee stock option
or other benefit plan, (ii) for a dividend reinvestment plan or (iii) in connection with a merger or acquisition, then the Company
shall (x) give written notice of such proposed filing to the holders of Registrable Securities appearing on the books and records
of the Company as such a holder as soon as practicable but in no event less than ten (10) days before the anticipated filing date
of the Registration Statement, which notice shall describe the amount and type of securities to be included in such Registration
Statement, the intended method(s) of distribution, and the name of the proposed managing underwriter or underwriters, if any,
of the offering, and (y) offer to the holders of Registrable Securities in such notice the opportunity to register the sale of
such number of Registrable Securities as such holders may request in writing within five (5) days following receipt of such notice
(a “Piggy-Back Registration”). The Company shall cause such Registrable Securities to be included in such registration
and shall cause the managing underwriter or underwriters of a proposed underwritten offering to permit the Registrable Securities
requested to be included in a Piggy-Back Registration on the same terms and conditions as any similar securities of the Company
and to permit the sale or other disposition of such Registrable Securities in accordance with the intended method(s) of distribution
thereof. All holders of Registrable Securities proposing to distribute their securities through a Piggy-Back Registration that
involves an underwriter or underwriters shall enter into an underwriting agreement in customary form with the underwriter or underwriters
selected for such Piggy-Back Registration.

 

1.2
Withdrawal. Any holder of Registrable Securities may elect to withdraw such holder’s request for inclusion of Registrable
Securities in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness
of the Registration Statement. The Company (whether on its own determination or as the result of a withdrawal by persons making
a demand pursuant to written contractual obligations) may withdraw a Registration Statement at any time prior to the effectiveness
of such Registration Statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders
of Registrable Securities in connection with such Piggy-Back Registration as provided in Section 1.5 below.

 

    	19

    	 

    

 

1.3
The Company shall notify the holders of Registrable Securities at any time when a prospectus relating to such holder’s Registrable
Securities is required to be delivered under the 1933 Act, upon discovery that, or upon the happening of any event as a result
of which, the prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material
fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing. At the request of such holder, the Company shall also prepare, file and furnish to
such holder a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as
thereafter delivered to the purchasers of the Registrable Securities, such prospectus shall not include an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing. The holders of Registrable Securities shall not offer or sell any Registrable
Securities covered by the Registration Statement after receipt of such notification until the receipt of such supplement or amendment.

 

1.4
The Company may request a holder of Registrable Securities to furnish the Company such information with respect to such holder
and such holder’s proposed distribution of the Registrable Securities pursuant to the Registration Statement as the Company
may from time to time reasonably request in writing or as shall be required by law or by the SEC in connection therewith, and
such holders shall furnish the Company with such information.

 

1.5
All fees and expenses incident to the performance of or compliance with this Exhibit A by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in
the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made
with the SEC, (B) with respect to filings required to be made with any trading market on which the Common Stock is then listed
for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing
(including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or
exemptions of the Registrable Securities) and (D) with respect to any filing that may be required to be made by any broker through
which a holder of Registrable Securities intends to make sales of Registrable Securities with the FINRA, (ii) printing expenses,
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) 1933 Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other persons or entities retained by the
Company in connection with the consummation of the transactions contemplated by this Exhibit B. In addition, the Company shall
be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated
by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar
commissions of any holder of Registrable Securities.

 

    	20

    	 

    

 

1.6
The Company and its successors and assigns shall indemnify and hold harmless the Buyer, each holder of Registrable Securities,
the officers, directors, members, partners, agents and employees (and any other individuals or entities with a functionally equivalent
role of a person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each individual
or entity who controls the Buyer or any such holder of Registrable Securities (within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act) and the officers, directors, members, stockholders, partners, agents and employees (and any other
individuals or entities with a functionally equivalent role of a person holding such titles, notwithstanding a lack of such title
or any other title) of each such controlling individual or entity (each, an “Indemnified Party”), to the fullest extent
permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation,
reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to
(1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any related prospectus or
any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating
to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
(in the case of any such prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading
or (2) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act or any state securities law, or any rule
or regulation thereunder, in connection with the performance of its obligations under this Exhibit A, except to the extent, but
only to the extent, that (i) such untrue statements or omissions are based upon information regarding the Buyer or such holder
of Registrable Securities furnished to the Company by such party for use therein. The Company shall notify the Buyer and each
holder of Registrable Securities promptly of the institution, threat or assertion of any proceeding arising from or in connection
with the transactions contemplated by this Exhibit A of which the Company is aware.

 

1.7
If the indemnification under Section 1.6 is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless
for any Losses, then the Company shall contribute to the amount paid or payable by such Indemnified Party, in such proportion
as is appropriate to reflect the relative fault of the Company and Indemnified Party in connection with the actions, statements
or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of the Company
and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue
or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by,
or relates to information supplied by, the Company or the Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by
a party as a result of any Losses shall be deemed to include any reasonable attorneys’ or other fees or expenses incurred
by such party in connection with any proceeding to the extent such party would have been indemnified for such fees or expenses
if the indemnification provided for in Section 1.6 was available to such party in accordance with its terms. It is agreed that
it would not be just and equitable if contribution pursuant to this Section 1.7 were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding
sentence. Notwithstanding the provisions of this Section 1.7, any holder of Registrable Securities shall not be required to contribute,
in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such party from the sale of
all of their Registrable Securities pursuant to such Registration Statement or related prospectus exceeds the amount of any damages
that such party has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.

 

    	21

    	 

    

 

EXHIBIT
B

 

FORM
OF SERIES A COMMON STOCK PURCHASE WARRANT 

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

STAR
MOUNTAIN RESOURCES, INC.

 

SERIES
A WARRANT TO PURCHASE COMMON STOCK

 

Warrant
No.: [●]

Number of
Shares of Common Stock: [●]

Date of
Issuance: _____________________ (“Issuance Date”)

 

FOR
VALUE RECEIVED, STAR MOUNTAIN RESOURCES, INC., a Nevada corporation (the “Company”), promises to issue in the name
of, and sell and deliver to ____________________ (the “Holder”) a certificate or certificates for an aggregate of
______________ shares (the “Warrant Shares”) of the Company’s common stock, par value $0.001 per share (the
“Common Stock”), upon exercise of this Warrant (the “Warrant”) payment by the Holder of $0.75
per Warrant Share (the “Exercise Price”), with the Exercise Price being subject to adjustment in the circumstances
set forth below.

 

1.Exercise
of Warrant; Call for Redemption by Company

 

A.Exercise
Period. The Holder may exercise this Warrant, in whole or in part (but not as to fractional shares), at any time and from
time to time commencing on the Issuance Date and ending, subject to an earlier call for redemption by the Company as hereinafter
set forth, at 5:30 p.m., Pacific Time, two (2) years thereafter (the “Exercise Period”).

 

B.Exercise
Procedure.

 

i.This
Warrant will be deemed to have been exercised at such time as the Company has received all of the following items (the “Exercise
Date”):

 

a.a
completed Exercise Agreement, in the form attached hereto as Exhibit 1, executed by the Holder (the “Purchaser”);
and

 

b.a
certified check or other manner of payment acceptable to the Company in an amount equal to the sum of the product of the Exercise
Price multiplied by the number of shares of Common Stock being purchased upon such exercise.

 

ii.Certificates
for the shares of Common Stock purchased upon exercise of this Warrant will be delivered by the Company to the Purchaser within
twenty (20) business days after the Exercise Date. Unless this Warrant has expired or all of the purchase rights represented hereby
have been exercised, the Company will prepare a new Warrant representing the rights formerly represented by this Warrant that
have not expired or been exercised. The Company will, within such twenty (20) day period, deliver such new Warrant to the Holder
at the address set forth in this Warrant.

 

    	22

    	 

    

 

iii.The
shares of Common Stock issuable upon the exercise of this Warrant will be deemed to have been transferred to the Purchaser on
the Exercise Date, and the Purchaser will be deemed for all purposes to have become the record holder of such Common Stock on
the Exercise Date.

 

iv.The
issuance of certificates for shares of Common Stock upon the exercise of this Warrant will be made without charge to the Purchaser
for any issuance tax in respect thereof or any other cost incurred by the Company in connection with such exercise and related
transfer of the shares; provided, however, that the Company shall not be required to pay any tax that may be payable in respect
of any transfer involved in the issuance and delivery of any certificate or instrument in a name other than that of the Holder
of this Warrant, and that the Company shall not be required to issue or deliver any such certificate or instrument unless and
until the person or persons requiring the issue thereof shall have paid to the Company the amount of such tax or shall have established
to the satisfaction of the Company that such tax has been paid.

 

v.Unless
the underlying shares of Common Stock are registered, sales of the securities may only be made pursuant to Rule 144 under the
Securities Act of 1933 (the “Act”) at such time as the Company as well as the Holder is able to effect sales of the
Warrant (including the shares of Common Stock underlying the Warrant pursuant to Rule 144 or other applicable exemption).

 

The
Holder shall have the right to exercise all or apportion of this Warrant as follows:

 

a.The
completion of any required registration or other qualification of such shares under any federal or state law o under the rulings
or regulations of the Securities and Exchange Commission or any other government regulatory body which is necessary;

 

b.The
obtaining of any approval or other clearance from any federal or state government agency which is necessary;

 

c.The
obtaining from the registered owner of the Warrant, as required in the sole judgment of the Company, a representation in writing
that the owner is acquiring such Common Shares for the owner’s own account for investment and not with a view to, or for
sale in connection with, the distribution of any part thereof, if the Warrants and the related shares have not been registered
under the Act; and

 

d.The
placing on the certificate, as required in the sole judgment of the Company, of an appropriate legend and the issuance of stop
transfer instructions in connection with this Warrant and the underlying shares of Common Stock to the following effect:

 

“The
securities represented by this certificate have not been registered under the securities act of 1933 or the laws of any state
and have been issued pursuant to an exemption from registration pertaining to such securities and pursuant to a representation
by the security holder named hereon that said securities have been acquired fro purposes of investment and may not be offered,
sold, transferred, pledged, or hypothecated in the absence of registration. Furthermore, No offer, sale, transfer, pledge, hypothecation
is to take place without the prior written approval of counsel or the issuer being affixed to this certificate. The transfer agent
has been instructed to execute transfer of this certificate only in accordance with the above instructions.”

 

    	23

    	 

    

 

C.Fractional
Shares. The Company shall not be required to issue fractions of shares of Common Stock on the exercise of this Warrant. The
Company shall not be obligated to issue any fractional share interests or fractional Warrant interests upon the exercise of this
Warrant, nor shall it be obligated to issue scrip or pay cash in lieu of fractional interests, provided, however, that if a holder
exercises all the Warrants held of record by such holder, the Company shall at its option (i) eliminate the fractional interests
by rounding any fraction up to the nearest whole number of shares or (ii) within 30 days after the Exercise Date, deliver to the
Purchaser a check payable to the Purchaser, in lieu of such fractional share, in an amount equal to the value of such fractional
share as determined by the closing price of the Company’s Common Stock as reported on the principal exchange on which the
Company’s Common Stock is then traded, as of the close of business on the Exercise Date.

 

2.Effect
of Reorganization, Reclassification, Consolidation, Merger or Sale

 

A.Recapitalization
or Reclassification of Common Stock. In case the Company shall at any time prior to the Exercise of this Warrant, or the expiration
of the Exercise Period, whichever first occurs, effect a recapitalization or reclassification of such character that its Common
Stock shall be changed into or become exchangeable for a larger or smaller number of shares, then, upon the effective date thereof,
the number of shares of Common Stock that the Holder of this Warrant shall be entitled to purchase upon exercise hereof shall
be increased or decreased, as the case may be, in direct proportion to the increase or decrease in such number of shares of Common
Stock by reason of such recapitalization or reclassification, and the Exercise Price of such recapitalized or reclassified Common
Stock shall, in the case of an increase in the number of shares, be proportionately decreased and, in the case of a decrease in
the number of shares, be proportionately increased.

 

B.Consolidation,
Merger or Sale. In case the Company shall at any time prior to the exercise of this Warrant, or the expiration of the Exercise
Period, whichever first occurs, consolidate or merge with any other corporation (unless the Company shall be the surviving entity)
or transfer all or substantially all of its assets to any other corporation preparatory to a dissolution, then the Company shall,
as a condition precedent to such transaction, cause effective provision to be made so that the Holder of this Warrant, upon the
exercise thereof after the effective date of such transaction, shall be entitled to receive the kind and amount of shares, evidences
of indebtedness, and/or other property receivable on such transaction by a holder of the number of shares of Common Stock as to
which the Warrant was exercisable immediately prior to such transaction (without giving effect to any restriction upon such exercise);
and, in any such case, appropriate provision shall be made with respect to the rights and interests of the Holder hereof to the
effect that the provisions of this Warrant shall thereafter be applicable (as nearly as may be practicable) with respect to any
shares, evidences of indebtedness, or other securities or assets thereafter deliverable upon exercise of this Warrant.

 

C.Notice
of Adjustment. Whenever the number of shares of Common Stock purchasable upon exercise of this Warrant shall be adjusted as
provided herein, the Company shall file with its corporate records a certificate of its Chief Financial Officer setting forth
the computation and the adjusted number of shares of Common Stock purchasable hereunder resulting from such adjustments, and a
copy of such certificate shall be mailed to the Holder. Any such certificate or letter shall be conclusive evidence as to the
correctness of the adjustment or adjustments referred to therein and shall be available for inspection by the holders of the Warrants
on any day during normal business hours.

 

3.Reservation
of Common Stock. The Company will at all time reserve and keep available such number of shares of Common Stock as will be
sufficient to permit the exercise in full of this Warrant. Upon exercise of this Warrant pursuant to its terms, the Holder will
acquire fully paid and non-assessable ownership rights of the Common Stock, free and clear of any liens, claims or encumbrances
except as otherwise provided herein.

 

    	24

    	 

    

 

4.No
Shareholder Rights or Obligations. This Warrant will not entitle the Holder hereof to any voting rights or other rights as
a shareholder of the Company. Until the shares of Common Stock issuable upon the exercise of this Warrant are recorded as issued
on the books and records of the Company’s transfer agent, the Holder shall not be entitled to any voting rights or other
rights as a shareholder; provided, however, the Company uses its best efforts to ensure that, upon receipt of the Exercise Agreement
and payment of the Exercise Price, the appropriate documentation necessary to effectuate the exercise of the Warrant and the issuance
of the Common Stock is accomplished as expeditiously as possible. No provision of this Warrant, in the absence of affirmative
action by the Holder to purchase Common Stock, and no enumeration in this Warrant of the rights or privileges of the Holder, will
give rise to any obligation of such Holder for the Exercise Price or as a stockholder of the Company.

 

5.Transferability.
Subject to the terms hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this
Warrant with a properly executed Assignment in the form of Exhibit 2 hereto at the principal offices of the Company. This Warrant
and the underlying shares of Common Stock may not be offered, sold or transferred except in compliance with the Act, and any applicable
state securities laws, and then only against receipt of an agreement of the person to whom such offer or sale or transfer is made
to comply with the provisions of this Warrant with respect to any resale or other disposition of such securities; provided that
no such agreement shall be required from any person purchasing this Warrant or the underlying shares of Common Stock pursuant
to a registration statement effective under the Act. The Holder of this Warrant agrees that, prior to the disposition of any security
purchased on the exercise hereof other than pursuant to a registration statement then effective under the Act, or any similar
statute then in effect, the Holder shall give written notice to the Company, expressing his intention as to such disposition.
Upon receiving such notice, the Company shall present a copy thereof to its securities counsel. If, in the sole opinion of such
counsel, which such opinion shall not be unreasonably withheld, the proposed disposition does not require registration of such
security under the Act, or any similar statute then in effect, the Company shall, as promptly as practicable, notify the Holder
of such opinion, whereupon the Holder shall be entitled to dispose of such security in accordance with the terms of the notice
delivered by the Holder to the Company.

 

6.Piggyback
Registration Rights. The Holder shall have the registration rights as set forth in Exhibit 3.

 

7.Miscellaneous

 

A.Notices.
Any notices, requests or consents hereunder shall be deemed given, and any instruments delivered, two days after they have been
mailed by first class mail, postage prepaid, or upon receipt if delivered personally or by facsimile transmission, as follows:

 

	If
    to the Company:	 	STAR
    MOUNTAIN RESOURCES, INC.
	 	 	605 W. Knox Road,
    Suite 202
	 	 	Tempe, Arizona
    85284
	 	 	 
	If
    to the Holder:	 	 
	 	 	 
	 	 	 
	 	 	

 

except
that any of the foregoing may from time to time by written notice to the other designate another address which shall thereupon
become its effective address for the purposes of this paragraph.

 

B.Entire
Agreement. This Warrant, including the exhibits and documents referred to herein which are a part hereof, contain the entire
understanding of the parties hereto with respect to the subject matter and may be amended only by a written instrument executed
by the parties hereto or their successors or assigns. Any paragraph headings contained in this Warrant are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Warrant.

 

    	25

    	 

    

 

C.Governing
Law. This Warrant is governed by, interpreted under and construed in all respects in accordance with the substantive laws
of the State of Nevada, without regard to the conflicts of law provision thereof, and irrespective of the place of domicile or
resident of the party. In the event of a controversy arising out of the interpretation, construction, performance or breach of
this Warrant, the parties hereby agree and consent to the jurisdiction and venue of the Courts of the State of Nevada, or the
United States District Court for Nevada; and further agree and consent that personal service of process in any such action or
preceding outside the State of Nevada shall be tantamount to service in person in Nevada.

 

IN
WITNESS WHEREOF, this Warrant has been duly executed and the corporate seal affixed hereto, all as of the day and year first above
written.

 

	 	Star
    Mountain Resources, Inc.
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	

 

    	26

    	 

    

 

EXHIBIT
1

 

Exercise
Agreement

 

	To:	Dated: ______________

 

The
undersigned record Holder, pursuant to the provisions set forth in the within Warrant, hereby subscribed for and purchases _____________________________
shares of Common Stock covered by such Warrant and hereby makes full cash payment of $_____________________ for such shares
at the Exercise Price provided by such Warrant.

 

	 	
	 	(Signature)
	 	 
	 	 
	 	(Print or type
    name)
	 	 
	 	 
	 	(Address)
	 	 
	 	 
	 	 

 

NOTICE:
The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon
the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

 

    	27

    	 

    

 

EXHIBIT
2

 

Assignment

 

FOR
VALUE RECEIVED, ________________________________, the undersigned Holder hereby sell, assigns, and transfer all of the rights
of the undersigned under the within Warrant with respect to the number of shares of Common Stock issuable upon the exercise of
such Warrant set forth below, unto the Assignee identified below, and does hereby irrevocable constitute and appoint ___________________________
to effect such transfer of rights on the books of the Company, with full power of substitution:

 

	 	 	 	 	Number
    of Shares
	Name
    of Assignee	 	Address
    of Assignee	 	of
    Common Stock
	 	 	 	 	 
	 	 	 	 	 

 

	Dated:
    ___________ 	 	 
	 	 	(Signature of
    Holder)
	 	 	 
	 	 	 
	 	 	(Print or type
    name)

 

NOTICE:
The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon
the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

 

Consent
of Assignee

 

I
HEREBY CONSENT to abide by the terms and conditions of the within Warrant.

 

Dated:
____________

 

	 	 
	 	(Signature of
    Assignee)
	 	 
	 	 
	 	(Print or type
    name)

 

    	28

    	 

    

 

EXHIBIT
3

 

REGISTRATION
RIGHTS

 

The
shares of the STAR MOUNTAIN RESOURCES, INC., a Nevada corporation’s Common Stock purchased upon exercise of the Warrants
will be deemed “Registrable Securities” subject to the provisions of this Exhibit 3. All capitalized terms used but
not defined in this Exhibit 3 shall have the meanings ascribed to such terms in the Callable Warrant to Purchase Common Stock
to which this Exhibit is attached.

 

1.Piggy-Back
Registration.

 

1.1Piggy-Back
Rights. If at any time on or after the Issuance Date the Company proposes to file any Registration Statement under the Securities
Act of 1933, as amended (the “1933 Act”) (a “Registration Statement”) with respect to any offering of
equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into, equity securities,
by the Company for its own account or for shareholders of the Company for their account (or by the Company and by shareholders
of the Company), other than a Registration Statement (i) filed in connection with any employee stock option or other benefit plan,
(ii) for a dividend reinvestment plan or (iii) in connection with a merger or acquisition, then the Company shall (x) give written
notice of such proposed filing to the holders of Registrable Securities appearing on the books and records of the Company as such
a holder as soon as practicable but in no event less than ten (10) days before the anticipated filing date of the Registration
Statement, which notice shall describe the amount and type of securities to be included in such Registration Statement, the intended
method(s) of distribution, and the name of the proposed managing underwriter or underwriters, if any, of the offering, and (y)
offer to the holders of Registrable Securities in such notice the opportunity to register the sale of such number of Registrable
Securities as such holders may request in writing within five (5) days following receipt of such notice (a “Piggy-Back Registration”).
The Company shall cause such Registrable Securities to be included in such registration and shall cause the managing underwriter
or underwriters of a proposed underwritten offering to permit the Registrable Securities requested to be included in a Piggy-Back
Registration on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition
of such Registrable Securities in accordance with the intended method(s) of distribution thereof. All holders of Registrable Securities
proposing to distribute their securities through a Piggy-Back Registration that involves an underwriter or underwriters shall
enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such Piggy-Back Registration.

 

1.2Withdrawal.
Any holder of Registrable Securities may elect to withdraw such holder’s request for inclusion of Registrable Securities
in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness
of the Registration Statement. The Company (whether on its own determination or as the result of a withdrawal by persons making
a demand pursuant to written contractual obligations) may withdraw a Registration Statement at any time prior to the effectiveness
of such Registration Statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders
of Registrable Securities in connection with such Piggy-Back Registration as provided in Section 1.5 below.

 

1.3The
Company shall notify the holders of Registrable Securities at any time when a prospectus relating to such holder’s Registrable
Securities is required to be delivered under the 1933 Act, upon discovery that, or upon the happening of any event as a result
of which, the prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material
fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing. At the request of such holder, the Company shall also prepare, file and furnish to
such holder a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as
thereafter delivered to the purchasers of the Registrable Securities, such prospectus shall not include an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing. The holders of Registrable Securities shall not offer or sell any Registrable
Securities covered by the Registration Statement after receipt of such notification until the receipt of such supplement or amendment.

 

    	29

    	 

    

 

1.4
The Company may request a holder of Registrable Securities to furnish the Company such information with respect to such holder
and such holder’s proposed distribution of the Registrable Securities pursuant to the Registration Statement as the Company
may from time to time reasonably request in writing or as shall be required by law or by the SEC in connection therewith, and
such holders shall furnish the Company with such information.

 

1.5All
fees and expenses incident to the performance of or compliance with this Exhibit A by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in
the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made
with the SEC, (B) with respect to filings required to be made with any trading market on which the Common Stock is then listed
for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing
(including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or
exemptions of the Registrable Securities) and (D) with respect to any filing that may be required to be made by any broker through
which a holder of Registrable Securities intends to make sales of Registrable Securities with the FINRA, (ii) printing expenses,
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) 1933 Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other persons or entities retained by the
Company in connection with the consummation of the transactions contemplated by this Exhibit B. In addition, the Company shall
be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated
by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar
commissions of any holder of Registrable Securities.

 

1.6The
Company and its successors and assigns shall indemnify and hold harmless the Buyer, each holder of Registrable Securities, the
officers, directors, members, partners, agents and employees (and any other individuals or entities with a functionally equivalent
role of a person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each individual
or entity who controls the Buyer or any such holder of Registrable Securities (within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act) and the officers, directors, members, stockholders, partners, agents and employees (and any other
individuals or entities with a functionally equivalent role of a person holding such titles, notwithstanding a lack of such title
or any other title) of each such controlling individual or entity (each, an “Indemnified Party”), to the fullest extent
permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation,
reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating
to (1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any related prospectus
or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating
to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
(in the case of any such prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading
or (2) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act or any state securities law, or any rule
or regulation thereunder, in connection with the performance of its obligations under this Exhibit A, except to the extent, but
only to the extent, that (i) such untrue statements or omissions are based upon information regarding the Buyer or such holder
of Registrable Securities furnished to the Company by such party for use therein. The Company shall notify the Buyer and each
holder of Registrable Securities promptly of the institution, threat or assertion of any proceeding arising from or in connection
with the transactions contemplated by this Exhibit A of which the Company is aware.

 

    	30

    	 

    

 

1.7If
the indemnification under Section 1.6 is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless
for any Losses, then the Company shall contribute to the amount paid or payable by such Indemnified Party, in such proportion
as is appropriate to reflect the relative fault of the Company and Indemnified Party in connection with the actions, statements
or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of the Company
and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue
or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by,
or relates to information supplied by, the Company or the Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by
a party as a result of any Losses shall be deemed to include any reasonable attorneys’ or other fees or expenses incurred
by such party in connection with any proceeding to the extent such party would have been indemnified for such fees or expenses
if the indemnification provided for in Section 1.6 was available to such party in accordance with its terms. It is agreed that
it would not be just and equitable if contribution pursuant to this Section 1.7 were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding
sentence. Notwithstanding the provisions of this Section 1.7, any holder of Registrable Securities shall not be required to contribute,
in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such party from the sale of
all of their Registrable Securities pursuant to such Registration Statement or related prospectus exceeds the amount of any damages
that such party has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.

 

[End
of Exhibit 3]

 

    	31

    	 

    

 

EXHIBIT
C

 

FORM
OF SERIES B COMMON STOCK PURCHASE WARRANT

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

STAR
MOUNTAIN RESOURCES, INC.

 

SERIES
B WARRANT TO PURCHASE COMMON STOCK

 

Warrant
No.: [●]

Number of
Shares of Common Stock: [●]

Date of
Issuance: _____________________ (“Issuance Date”)

 

FOR
VALUE RECEIVED, STAR MOUNTAIN RESOURCES, INC., a Nevada corporation (the “Company”), promises to issue in the name
of, and sell and deliver to ____________________ (the “Holder”) a certificate or certificates for an aggregate of
______________ shares (the “Warrant Shares”) of the Company’s common stock, par value $0.001 per share (the
“Common Stock”), upon exercise of this Warrant (the “Warrant”) payment by the Holder of $1.50
per Warrant Share (the “Exercise Price”), with the Exercise Price being subject to adjustment in the circumstances
set forth below.

 

8.Exercise
of Warrant; Call for Redemption by Company

 

A.Exercise
Period. The Holder may exercise this Warrant, in whole or in part (but not as to fractional shares), at any time and from
time to time commencing on the Issuance Date and ending, subject to an earlier call for redemption by the Company as hereinafter
set forth, at 5:30 p.m., Pacific Time, three (3) years thereafter (the “Exercise Period”).

 

B.Exercise
Procedure.

 

i.This
Warrant will be deemed to have been exercised at such time as the Company has received all of the following items (the “Exercise
Date”):

 

a.a
completed Exercise Agreement, in the form attached hereto as Exhibit 1, executed by the Holder (the “Purchaser”);
and

 

b.a
certified check or other manner of payment acceptable to the Company in an amount equal to the sum of the product of the Exercise
Price multiplied by the number of shares of Common Stock being purchased upon such exercise.

 

ii.Certificates
for the shares of Common Stock purchased upon exercise of this Warrant will be delivered by the Company to the Purchaser within
twenty (20) business days after the Exercise Date. Unless this Warrant has expired or all of the purchase rights represented hereby
have been exercised, the Company will prepare a new Warrant representing the rights formerly represented by this Warrant that
have not expired or been exercised. The Company will, within such twenty (20) day period, deliver such new Warrant to the Holder
at the address set forth in this Warrant.

 

    	32

    	 

    

 

iii.The
shares of Common Stock issuable upon the exercise of this Warrant will be deemed to have been transferred to the Purchaser on
the Exercise Date, and the Purchaser will be deemed for all purposes to have become the record holder of such Common Stock on
the Exercise Date.

 

iv.The
issuance of certificates for shares of Common Stock upon the exercise of this Warrant will be made without charge to the Purchaser
for any issuance tax in respect thereof or any other cost incurred by the Company in connection with such exercise and related
transfer of the shares; provided, however, that the Company shall not be required to pay any tax that may be payable in respect
of any transfer involved in the issuance and delivery of any certificate or instrument in a name other than that of the Holder
of this Warrant, and that the Company shall not be required to issue or deliver any such certificate or instrument unless and
until the person or persons requiring the issue thereof shall have paid to the Company the amount of such tax or shall have established
to the satisfaction of the Company that such tax has been paid.

 

v.Unless
the underlying shares of Common Stock are registered, sales of the securities may only be made pursuant to Rule 144 under the
Securities Act of 1933 (the “Act”) at such time as the Company as well as the Holder is able to effect sales of the
Warrant (including the shares of Common Stock underlying the Warrant pursuant to Rule 144 or other applicable exemption).

 

The
Holder shall have the right to exercise all or apportion of this Warrant as follows:

 

a.The
completion of any required registration or other qualification of such shares under any federal or state law o under the rulings
or regulations of the Securities and Exchange Commission or any other government regulatory body which is necessary;

 

b.The
obtaining of any approval or other clearance from any federal or state government agency which is necessary;

 

c.The
obtaining from the registered owner of the Warrant, as required in the sole judgment of the Company, a representation in writing
that the owner is acquiring such Common Shares for the owner’s own account for investment and not with a view to, or for
sale in connection with, the distribution of any part thereof, if the Warrants and the related shares have not been registered
under the Act; and

 

d.The
placing on the certificate, as required in the sole judgment of the Company, of an appropriate legend and the issuance of stop
transfer instructions in connection with this Warrant and the underlying shares of Common Stock to the following effect:

 

“The
securities represented by this certificate have not been registered under the securities act of 1933 or the laws of any state
and have been issued pursuant to an exemption from registration pertaining to such securities and pursuant to a representation
by the security holder named hereon that said securities have been acquired fro purposes of investment and may not be offered,
sold, transferred, pledged, or hypothecated in the absence of registration. Furthermore, No offer, sale, transfer, pledge, hypothecation
is to take place without the prior written approval of counsel or the issuer being affixed to this certificate. The transfer agent
has been instructed to execute transfer of this certificate only in accordance with the above instructions.”

 

    	33

    	 

    

 

C.Fractional
Shares. The Company shall not be required to issue fractions of shares of Common Stock on the exercise of this Warrant. The
Company shall not be obligated to issue any fractional share interests or fractional Warrant interests upon the exercise of this
Warrant, nor shall it be obligated to issue scrip or pay cash in lieu of fractional interests, provided, however, that if a holder
exercises all the Warrants held of record by such holder, the Company shall at its option (i) eliminate the fractional interests
by rounding any fraction up to the nearest whole number of shares or (ii) within 30 days after the Exercise Date, deliver to the
Purchaser a check payable to the Purchaser, in lieu of such fractional share, in an amount equal to the value of such fractional
share as determined by the closing price of the Company’s Common Stock as reported on the principal exchange on which the
Company’s Common Stock is then traded, as of the close of business on the Exercise Date.

 

9.Effect
of Reorganization, Reclassification, Consolidation, Merger or Sale

 

A.Recapitalization
or Reclassification of Common Stock. In case the Company shall at any time prior to the Exercise of this Warrant, or the expiration
of the Exercise Period, whichever first occurs, effect a recapitalization or reclassification of such character that its Common
Stock shall be changed into or become exchangeable for a larger or smaller number of shares, then, upon the effective date thereof,
the number of shares of Common Stock that the Holder of this Warrant shall be entitled to purchase upon exercise hereof shall
be increased or decreased, as the case may be, in direct proportion to the increase or decrease in such number of shares of Common
Stock by reason of such recapitalization or reclassification, and the Exercise Price of such recapitalized or reclassified Common
Stock shall, in the case of an increase in the number of shares, be proportionately decreased and, in the case of a decrease in
the number of shares, be proportionately increased.

 

B.Consolidation,
Merger or Sale. In case the Company shall at any time prior to the exercise of this Warrant, or the expiration of the Exercise
Period, whichever first occurs, consolidate or merge with any other corporation (unless the Company shall be the surviving entity)
or transfer all or substantially all of its assets to any other corporation preparatory to a dissolution, then the Company shall,
as a condition precedent to such transaction, cause effective provision to be made so that the Holder of this Warrant, upon the
exercise thereof after the effective date of such transaction, shall be entitled to receive the kind and amount of shares, evidences
of indebtedness, and/or other property receivable on such transaction by a holder of the number of shares of Common Stock as to
which the Warrant was exercisable immediately prior to such transaction (without giving effect to any restriction upon such exercise);
and, in any such case, appropriate provision shall be made with respect to the rights and interests of the Holder hereof to the
effect that the provisions of this Warrant shall thereafter be applicable (as nearly as may be practicable) with respect to any
shares, evidences of indebtedness, or other securities or assets thereafter deliverable upon exercise of this Warrant.

 

C.Notice
of Adjustment. Whenever the number of shares of Common Stock purchasable upon exercise of this Warrant shall be adjusted as
provided herein, the Company shall file with its corporate records a certificate of its Chief Financial Officer setting forth
the computation and the adjusted number of shares of Common Stock purchasable hereunder resulting from such adjustments, and a
copy of such certificate shall be mailed to the Holder. Any such certificate or letter shall be conclusive evidence as to the
correctness of the adjustment or adjustments referred to therein and shall be available for inspection by the holders of the Warrants
on any day during normal business hours.

 

10.Reservation
of Common Stock. The Company will at all time reserve and keep available such number of shares of Common Stock as will be
sufficient to permit the exercise in full of this Warrant. Upon exercise of this Warrant pursuant to its terms, the Holder will
acquire fully paid and non-assessable ownership rights of the Common Stock, free and clear of any liens, claims or encumbrances
except as otherwise provided herein.

 

    	34

    	 

    

 

11.No
Shareholder Rights or Obligations. This Warrant will not entitle the Holder hereof to any voting rights or other rights as
a shareholder of the Company. Until the shares of Common Stock issuable upon the exercise of this Warrant are recorded as issued
on the books and records of the Company’s transfer agent, the Holder shall not be entitled to any voting rights or other
rights as a shareholder; provided, however, the Company uses its best efforts to ensure that, upon receipt of the Exercise Agreement
and payment of the Exercise Price, the appropriate documentation necessary to effectuate the exercise of the Warrant and the issuance
of the Common Stock is accomplished as expeditiously as possible. No provision of this Warrant, in the absence of affirmative
action by the Holder to purchase Common Stock, and no enumeration in this Warrant of the rights or privileges of the Holder, will
give rise to any obligation of such Holder for the Exercise Price or as a stockholder of the Company.

 

12.Transferability.
Subject to the terms hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this
Warrant with a properly executed Assignment in the form of Exhibit 2 hereto at the principal offices of the Company. This Warrant
and the underlying shares of Common Stock may not be offered, sold or transferred except in compliance with the Act, and any applicable
state securities laws, and then only against receipt of an agreement of the person to whom such offer or sale or transfer is made
to comply with the provisions of this Warrant with respect to any resale or other disposition of such securities; provided that
no such agreement shall be required from any person purchasing this Warrant or the underlying shares of Common Stock pursuant
to a registration statement effective under the Act. The Holder of this Warrant agrees that, prior to the disposition of any security
purchased on the exercise hereof other than pursuant to a registration statement then effective under the Act, or any similar
statute then in effect, the Holder shall give written notice to the Company, expressing his intention as to such disposition.
Upon receiving such notice, the Company shall present a copy thereof to its securities counsel. If, in the sole opinion of such
counsel, which such opinion shall not be unreasonably withheld, the proposed disposition does not require registration of such
security under the Act, or any similar statute then in effect, the Company shall, as promptly as practicable, notify the Holder
of such opinion, whereupon the Holder shall be entitled to dispose of such security in accordance with the terms of the notice
delivered by the Holder to the Company.

 

13.Piggyback
Registration Rights. The Holder shall have the registration rights as set forth in Exhibit 3.

 

14.Miscellaneous

 

A.Notices.
Any notices, requests or consents hereunder shall be deemed given, and any instruments delivered, two days after they have been
mailed by first class mail, postage prepaid, or upon receipt if delivered personally or by facsimile transmission, as follows:

 

	If
    to the Company:	 	STAR
    MOUNTAIN RESOURCES, INC.
	 	 	605 W. Knox Road,
    Suite 202
	 	 	Tempe, Arizona
    85284
	 	 	 
	If
    to the Holder:	 	 
	 	 	 
	 	 	 
	 	 	

 

except
that any of the foregoing may from time to time by written notice to the other designate another address which shall thereupon
become its effective address for the purposes of this paragraph.

 

B.Entire
Agreement. This Warrant, including the exhibits and documents referred to herein which are a part hereof, contain the entire
understanding of the parties hereto with respect to the subject matter and may be amended only by a written instrument executed
by the parties hereto or their successors or assigns. Any paragraph headings contained in this Warrant are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Warrant.

 

    	35

    	 

    

 

C.Governing
Law. This Warrant is governed by, interpreted under and construed in all respects in accordance with the substantive laws
of the State of Nevada, without regard to the conflicts of law provision thereof, and irrespective of the place of domicile or
resident of the party. In the event of a controversy arising out of the interpretation, construction, performance or breach of
this Warrant, the parties hereby agree and consent to the jurisdiction and venue of the Courts of the State of Nevada, or the
United States District Court for Nevada; and further agree and consent that personal service of process in any such action or
preceding outside the State of Nevada shall be tantamount to service in person in Nevada.

 

IN
WITNESS WHEREOF, this Warrant has been duly executed and the corporate seal affixed hereto, all as of the day and year first above
written.

 

	 	Star
    Mountain Resources, Inc.
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

    	36

    	 

    

 

EXHIBIT
1

 

Exercise
Agreement

 

	To:	Dated: ____________

 

The
undersigned record Holder, pursuant to the provisions set forth in the within Warrant, hereby subscribed for and purchases_______________________________
 shares of Common Stock covered by such Warrant and hereby makes full cash payment of $__________________ for such
shares at the Exercise Price provided by such Warrant.

 

	 	 
	 	(Signature)
	 	 
	 	 
	 	(Print or type
    name)
	 	 
	 	 
	 	(Address)
	 	 
	 	 
	 	 

 

NOTICE:
The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon
the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

 

    	37

    	 

    

 

EXHIBIT
2

 

Assignment

 

FOR
VALUE RECEIVED, _______________________________, the undersigned Holder hereby sell, assigns, and transfer all of the rights of
the undersigned under the within Warrant with respect to the number of shares of Common Stock issuable upon the exercise of such
Warrant set forth below, unto the Assignee identified below, and does hereby irrevocable constitute and appoint _________________________________to
effect such transfer of rights on the books of the Company, with full power of substitution:

 

	 	 	 	 	Number
    of Shares
	Name
    of Assignee	 	Address
    of Assignee	 	of
    Common Stock
	 	 	 	 	 
	 	 	 	 	 

 

	Dated:
    ____________	 	 
	 	 	(Signature of
    Holder)
	 	 	 
	 	 	 
	 	 	(Print or type
    name)

 

NOTICE:
The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon
the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

 

Consent
of Assignee

 

I
HEREBY CONSENT to abide by the terms and conditions of the within Warrant.

 

Dated:
____________

 

	 	 
	 	(Signature of
    Assignee)
	 	 
	 	 
	 	(Print or type
    name)

 

    	- 1 -

    	 

    

 

EXHIBIT
3

 

REGISTRATION
RIGHTS

 

The
shares of the STAR MOUNTAIN RESOURCES, INC., a Nevada corporation’s Common Stock purchased upon exercise of the Warrants
will be deemed “Registrable Securities” subject to the provisions of this Exhibit 3. All capitalized terms used but
not defined in this Exhibit 3 shall have the meanings ascribed to such terms in the Callable Warrant to Purchase Common Stock
to which this Exhibit is attached.

 

1.Piggy-Back
Registration.

 

1.1Piggy-Back
Rights. If at any time on or after the Issuance Date the Company proposes to file any Registration Statement under the Securities
Act of 1933, as amended (the “1933 Act”) (a “Registration Statement”) with respect to any offering of
equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into, equity securities,
by the Company for its own account or for shareholders of the Company for their account (or by the Company and by shareholders
of the Company), other than a Registration Statement (i) filed in connection with any employee stock option or other benefit plan,
(ii) for a dividend reinvestment plan or (iii) in connection with a merger or acquisition, then the Company shall (x) give written
notice of such proposed filing to the holders of Registrable Securities appearing on the books and records of the Company as such
a holder as soon as practicable but in no event less than ten (10) days before the anticipated filing date of the Registration
Statement, which notice shall describe the amount and type of securities to be included in such Registration Statement, the intended
method(s) of distribution, and the name of the proposed managing underwriter or underwriters, if any, of the offering, and (y)
offer to the holders of Registrable Securities in such notice the opportunity to register the sale of such number of Registrable
Securities as such holders may request in writing within five (5) days following receipt of such notice (a “Piggy-Back Registration”).
The Company shall cause such Registrable Securities to be included in such registration and shall cause the managing underwriter
or underwriters of a proposed underwritten offering to permit the Registrable Securities requested to be included in a Piggy-Back
Registration on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition
of such Registrable Securities in accordance with the intended method(s) of distribution thereof. All holders of Registrable Securities
proposing to distribute their securities through a Piggy-Back Registration that involves an underwriter or underwriters shall
enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such Piggy-Back Registration.

 

1.2Withdrawal.
Any holder of Registrable Securities may elect to withdraw such holder’s request for inclusion of Registrable Securities
in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness
of the Registration Statement. The Company (whether on its own determination or as the result of a withdrawal by persons making
a demand pursuant to written contractual obligations) may withdraw a Registration Statement at any time prior to the effectiveness
of such Registration Statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders
of Registrable Securities in connection with such Piggy-Back Registration as provided in Section 1.5 below.

 

1.3The
Company shall notify the holders of Registrable Securities at any time when a prospectus relating to such holder’s Registrable
Securities is required to be delivered under the 1933 Act, upon discovery that, or upon the happening of any event as a result
of which, the prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material
fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing. At the request of such holder, the Company shall also prepare, file and furnish to
such holder a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as
thereafter delivered to the purchasers of the Registrable Securities, such prospectus shall not include an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing. The holders of Registrable Securities shall not offer or sell any Registrable
Securities covered by the Registration Statement after receipt of such notification until the receipt of such supplement or amendment.

 

    	- 2 -

    	 

    

 

1.4
The Company may request a holder of Registrable Securities to furnish the Company such information with respect to such holder
and such holder’s proposed distribution of the Registrable Securities pursuant to the Registration Statement as the Company
may from time to time reasonably request in writing or as shall be required by law or by the SEC in connection therewith, and
such holders shall furnish the Company with such information.

 

1.5All
fees and expenses incident to the performance of or compliance with this Exhibit A by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in
the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made
with the SEC, (B) with respect to filings required to be made with any trading market on which the Common Stock is then listed
for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing
(including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or
exemptions of the Registrable Securities) and (D) with respect to any filing that may be required to be made by any broker through
which a holder of Registrable Securities intends to make sales of Registrable Securities with the FINRA, (ii) printing expenses,
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) 1933 Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other persons or entities retained by the
Company in connection with the consummation of the transactions contemplated by this Exhibit B. In addition, the Company shall
be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated
by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar
commissions of any holder of Registrable Securities.

 

1.6The
Company and its successors and assigns shall indemnify and hold harmless the Buyer, each holder of Registrable Securities, the
officers, directors, members, partners, agents and employees (and any other individuals or entities with a functionally equivalent
role of a person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each individual
or entity who controls the Buyer or any such holder of Registrable Securities (within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act) and the officers, directors, members, stockholders, partners, agents and employees (and any other
individuals or entities with a functionally equivalent role of a person holding such titles, notwithstanding a lack of such title
or any other title) of each such controlling individual or entity (each, an “Indemnified Party”), to the fullest extent
permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation,
reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating
to (1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any related prospectus
or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating
to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
(in the case of any such prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading
or (2) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act or any state securities law, or any rule
or regulation thereunder, in connection with the performance of its obligations under this Exhibit A, except to the extent, but
only to the extent, that (i) such untrue statements or omissions are based upon information regarding the Buyer or such holder
of Registrable Securities furnished to the Company by such party for use therein. The Company shall notify the Buyer and each
holder of Registrable Securities promptly of the institution, threat or assertion of any proceeding arising from or in connection
with the transactions contemplated by this Exhibit A of which the Company is aware.

 

    	- 3 -

    	 

    

 

1.7If
the indemnification under Section 1.6 is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless
for any Losses, then the Company shall contribute to the amount paid or payable by such Indemnified Party, in such proportion
as is appropriate to reflect the relative fault of the Company and Indemnified Party in connection with the actions, statements
or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of the Company
and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue
or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by,
or relates to information supplied by, the Company or the Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by
a party as a result of any Losses shall be deemed to include any reasonable attorneys’ or other fees or expenses incurred
by such party in connection with any proceeding to the extent such party would have been indemnified for such fees or expenses
if the indemnification provided for in Section 1.6 was available to such party in accordance with its terms. It is agreed that
it would not be just and equitable if contribution pursuant to this Section 1.7 were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding
sentence. Notwithstanding the provisions of this Section 1.7, any holder of Registrable Securities shall not be required to contribute,
in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such party from the sale of
all of their Registrable Securities pursuant to such Registration Statement or related prospectus exceeds the amount of any damages
that such party has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.

 

[End
of Exhibit 3]

 

    	- 4 -Exhibit

EXHIBIT  10.151

Original Sheet No. 58

 

SA 1756 METC-CONSUMERS GIA VERSION 32.0.0
EFFECTIVE 10/01/2015
NINTH REVISED SERVICE AGREEMENT NO. 1756
PUBLIC VERSION

Project G479B
AMENDED AND RESTATED
GENERATOR INTERCONNECTION AGREEMENT

entered into by and between

Michigan Electric Transmission Company, LLC

and

Consumers Energy Company

and

Midcontinent Independent System Operator, Inc.

Amended and Restated

GENERATOR INTERCONNECTION AGREEMENT

by and among

Michigan Electric Transmission Company, LLC

and

Consumers Energy Company

and the

Midcontinent Independent System Operator, Inc.
Amended and Restated
GENERATOR INTERCONNECTION AGREEMENT

THIS Amended AND RESTATED GENERATOR INTERCONNECTION AGREEMENT(the "Agreement") is made and entered into as of September 30, 2015, by and among Michigan Electric Transmission Company, LLC, a limited liability company with offices at 27175 Energy Way  Novi, Michigan (herein referred to as “METC” or "Transmission Owner”), Consumers Energy Company, a Michigan corporation with offices at One Energy Plaza, Jackson, Michigan (herein referred to as “Consumers” or “Interconnection Customer”), and the Midcontinent Independent System Operator, Inc., formerly known as Midwest Independent Transmission System Operator, Inc., a non-profit, non-stock corporation organized and existing under the laws of the State of Delaware (herein referred to as “MISO” or “Transmission Provider”).  Transmission Provider, Consumers and Transmission Owner each may be referred to individually as a "Party," or collectively as the "Parties."  This Agreement amends, restates and replaces the May 2, 2014 Amendment and Restatement of the Generator Interconnection Agreement between the Transmission Owner, Transmission Provider and Consumers, effective on the Effective Date provided for below in Section 2.1.

WITNESSETH:

WHEREAS, Consumers owns and operates several electric generating assets (herein referred to as a Unit when discussing one of them, or as Generation Resources when referring to all of them) as described in Article 1.  The Unit names and generating capability ratings of the Generation Resources are set forth in Exhibit A to this Agreement.  Each Unit in the list is currently in commercial operation; and

WHEREAS, Transmission Provider has functional control of the operation of the Transmission System, as defined in Article 1 of this Agreement, and is responsible for providing transmission and interconnection service on the transmission facilities under its functional control; and 

WHEREAS, Transmission Owner owns or operates the Transmission System, whose operations are subject to the functional control of the Transmission Provider, to which the Consumers’ Units are interconnected, as set forth in this Agreement; and

WHEREAS, it is necessary for Consumers’ Units to remain interconnected with the Transmission System (as defined in Article 1), in order for said Units to continue to operate; and

WHEREAS, the revised and restated Agreement is not intended to affect METC’s and Consumer’s obligations to each other with regard to the following agreements:     

WHEREAS, Consumers and Transmission Owner have entered into an Operating Agreement, dated as of April 1, 2001, as amended and restated, (herein referred to as the “Operating Agreement”) that defines the operating responsibilities of the Transmission Owner with respect to the Transmission System and the obligations, rights and responsibilities of Consumers to provide ancillary services and to operate its Generation Resources in a manner that will not unduly interfere with the provision of Transmission Services by the Transmission Owner; and

WHEREAS, Consumers, Transmission Owner and Transmission Provider have entered into a Purchase and Sale Agreement for Ancillary Services, dated as of April 1, 2001, as amended and restated, that sets forth the terms and conditions under which Consumers shall use its Generation Resources to provide ancillary services to the Transmission Owner and Transmission Provider; and

WHEREAS, the Parties are willing to maintain the interconnection of Consumers’ Generation Resources with the Transmission System under the terms and conditions contained herein.

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein, the Parties hereto agree as follows:

ARTICLE 1
DEFINITIONS

1.1    Whenever used in this Agreement, appendices, and attachments hereto, the following terms shall have the following meanings:

“Black Start Capability” shall mean a generating Unit that is capable of starting without an outside electrical supply.  Said Units are specified in Exhibit A. 

“Black Start Plan” shall mean a plan utilizing Black Start Capability designed and implemented by the Transmission Provider or Transmission Owner in conjunction with its interconnected generation and distribution customers, Distribution System Control, other electric systems, its Security Coordinator and ECAR, to energize portions of the Transmission System which are de-energized as a result of a widespread system disturbance.

“Black Start Service” shall mean the provision of service needed to energize a defined portion of the Transmission Owner’s Transmission  System, including the start up of the Generation Resources and/or other generators, in accordance with the Transmission Provider’s or Transmission Owner’s Black Start Plan when local power from the Transmission System is unavailable or insufficient. 

"Commission" shall mean the Federal Energy Regulatory Commission, or any successor agency.

“Connection Point” shall be the point where Consumers’ Interconnection Assets connect to Transmission Owner’s Interconnection Assets, as described in Exhibit B of this Agreement.

“Consumers’ Incremental Cost” shall mean Consumers’ actual hourly replacement cost of energy on Consumers’ Generation Resources, whether that energy is (a) produced by generation owned by or under contract to Consumers or (b) purchased from a third party.

“Consumers’ Interconnection Assets” shall mean the assets identified as belonging to Consumers in Exhibit B of this Agreement and all other assets that are necessary or desirable to interconnect a Unit to the Transmission System reliably and safely, including all connection, switching, transmission, distribution, safety, and communication assets, protective assets, Telemetry and Monitoring Assets that Consumers owns or operates and maintains.

"Consumers’ System" shall mean the assets owned, controlled and operated by Consumers that are used to provide service to its customers.

“ECAR” stands for the East Central Area Reliability council or a successor group. 

"Emergency" shall mean any system condition that requires automatic or immediate manual action to prevent or limit the loss of transmission assets or generation supply that could adversely affect the reliability of Transmission System or Consumers’ System or the systems to which either Party is directly or indirectly connected.

“Generation Resources” shall mean the assets used for the production of electric energy, which are owned and operated by Consumers and directly or indirectly connected to the Transmission System pursuant to this Agreement.

"Good Utility Practice" shall mean any of the practices, methods and acts engaged in or approved by a significant proportion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition.  Good Utility Practice is not intended to be limited to the optimum practice, method or act to the exclusion of all others, but rather to be acceptable practices, methods or acts generally accepted in the region.

“Governmental Authority” shall mean any federal, state, local or municipal governmental body; any governmental, regulatory or administrative agency, commission, body or other authority exercising or entitled to exercise any administrative, executive, judicial, legislative, policy, regulatory or taxing authority or power; or any court or governmental tribunal.

"Hazardous Substances" shall mean any chemicals, materials or substances defined as or included in the definition of "hazardous substances", "hazardous wastes", "hazardous materials", "hazardous constituents", "restricted hazardous materials", "extremely hazardous substances", "toxic substances", "contaminants", "pollutants", "toxic pollutants" or words of similar meaning and regulatory effect under any applicable Environmental Law, or any other chemical, material or substance, exposure to which is prohibited, limited or regulated by any applicable Environmental Law.  For purposes of this Agreement, the term "Environmental Law" shall mean federal, state, and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders relating to pollution or protection of the environment, natural resources or human health and safety.

“IEEE” is an acronym, which stands for the Institute of Electrical and Electronic Engineers.

“Interconnection Assets” shall mean, collectively, Transmission Owner’s Interconnection Assets and Consumers’ Interconnection Assets, or the specific Interconnection Assets of either the Transmission Owner or Consumers, as the case may be.

“Jointly Owned Assets” shall mean those assets in which Consumers and Transmission Owner have undivided ownership interests.  Due to the nature of substation designs, many of the supporting 

substation assets (e.g., station batteries, fencing, control houses, ground grid, yard stone, steel structures and some protective relay assets) cannot be separated by ownership and the Parties share in the ownership of such assets.  The respective ownership of such assets by substation is shown in Exhibit B hereto.

“Metering Assets” shall mean the assets required to provide acceptably accurate metering of the interconnection power and energy output from the Unit and the standby power and energy usage of the Unit.  Said Metering Assets typically includes but is not limited to, metering accuracy potential and current transformers, transducers, primary connections, secondary connections, secondary potential and current circuits and conduit, telephone lines and access to said Metering Assets, if necessary.  The transducers used shall be capable of providing Megawatthour and Megavarhour data. 

“MISO” shall mean the Midcontinent Independent System Operator, Inc., or its successor.

“MISO Tariff” shall mean the Open Access Transmission, Energy and Operating Reserve Markets Tariff on file with the Commission as it may be amended or superseded from time to time. 
    
“Monitoring Assets” shall mean the assets required to determine (a) the sequence of events for the operation of protective assets during an electrical fault, (b) the location and characteristics of an electrical fault and (c) the quality of power provided at the Point of Receipt.

"NERC" is an acronym that stands for the North American Electric Reliability Council, including any successor thereto or any regional reliability council thereof.  This reliability council oversees the development and publication of operating policies, engineering planning principles and guides and support information to provide guidance to the regional reliability councils and to promote electric system reliability.

“Point of Receipt” shall be the point at which capacity and energy is provided by Consumers, as described in Exhibit B of this Agreement.

“Reactive Design Limitations” shall mean the reactive power capability designed into the Unit, which were consistent with reactive power capability specifications in place when the Unit was constructed.

"Secondary Systems" shall mean control or power circuits that operate below 600 volts, AC or DC, including, but not limited to, any hardware, control or protective devices, cables, conductors, electric conduits and raceways, secondary assets panels, transducers, batteries, chargers, and voltage and current transformers.

"Switching and Tagging Rules" shall mean the written documents describing the switching and tagging procedures of Transmission Owner and Consumers, as they may be amended.

“System Operator” is a generic term used to describe the individuals responsible for the integrity or the operational control of the Transmission System and any successor thereto.

"System Protection Assets" shall mean the assets required to protect (a) the Transmission System, the systems of others connected to the Transmission System, and Transmission Owner’s customers from faults occurring at the Unit, and (b) the Unit from faults occurring on the Transmission System or on the systems of others to which the Transmission System is directly or indirectly connected.
    
“Telemetry Equipment” shall mean the assets, identified by Transmission Owner, that are required to provide the necessary, real-time telemetry of Unit operations and status, as required by Transmission 

Owner, for remote monitoring and control purposes. This typically includes but is not limited to, remote terminal units, distributed terminal units, telemetry signal inputs, fiber optic communication connections, transducers, pulse multipliers, isolation amplifiers, analog inputs, digital inputs, metering pulsed accumulator inputs, power supply, dedicated telephone data line to remote terminal units, telephone modem, telephone switching, interface terminal strips for landing signal inputs/outputs.  Telemetry Equipment may be located at Consumers’ Unit and or at Transmission Owner’s assets.

“Transmission Owner” shall mean Michigan Electric Transmission Company, LLC or its successor.

“Transmission Owner’s Interconnection Assets” shall mean the assets identified as belonging to Transmission Owner in Exhibit B of this Agreement and all other assets that are necessary or desirable to interconnect the Generation Resources to the Transmission System reliably and safely, including all connection, switching, transmission, distribution, safety, and communication assets, protective assets, Metering, Telemetry and Monitoring Assets and all improvements, additions or extensions to the Transmission System owned or operated and maintained by the Transmission Owner and that are attributable to or necessitated by the Generation Resources.

“Transmission Provider” shall mean MISO.

"Transmission System" shall mean the facilities owned by the Transmission Owner and controlled or operated by the Transmission Provider or Transmission Owner that are used to provide transmission service under the MISO Tariff. 

“Transmission Service” shall include both Point-To-Point Transmission Service and Network Integration Transmission Service provided under the MISO Tariff.

"Unit" shall mean each of Consumers’ electric generating assets, or group of generating assets having common Interconnection Assets, covered by this Agreement and identified generally in the first  "Whereas" clause and Exhibit A of this Agreement and more specifically identified in the "as built" drawings provided to Transmission Owner  in accordance with Section 4.3 of this Agreement, together with the other property, assets, and assets owned and/or controlled by Consumers on the Consumers' side of the Connection Point.

ARTICLE 2
TERM OF AGREEMENT
2.1    Effective Date
This Agreement shall become effective on the date designated by the Commission in its order accepting this Agreement for filing (the “Effective Date”).

2.2    Term
This Agreement shall become effective as provided in Section 2.1 above and, unless terminated as provided below, shall continue in full force and effect until a mutually agreed termination date, but no later than the date on which all of the Generation Resources cease commercial operation.  

2.3    Termination
In the event that Transmission Owner joins a Regional Transmission Organization (“RTO”) which requires use of its own FERC-approved interconnection and operating agreement, this Agreement shall terminate on the effective date of such new interconnection and operating agreement between Consumers 

and the RTO, except to the extent necessary to resolve billing and other outstanding matters related to service rendered under this Agreement as specified in Section 2.5.

2.4    Regulatory Filing
Transmission Provider shall file this Agreement with the Commission as a Service Agreement under the MISO Tariff, within the meaning of 18 C.F.R. Part 35.  Consumers and Transmission Owner agree to cooperate with Transmission Provider with respect to such filing and to provide any information, including the rendering of testimony reasonably requested by Transmission Provider, needed to comply with applicable regulatory requirements.

2.5    Survival
The applicable provisions of this Agreement shall continue in effect after expiration, cancellation, or termination hereof to the extent necessary to provide for final billings, billing adjustments, and the determination and enforcement of liability and indemnification obligations arising from acts or events that occurred while this Agreement was in effect.

ARTICLE 3
INTERCONNECTION SERVICE
3.1    Scope of Service

In the event future changes in either (a) design or operation of any Unit, (b) Consumers’ requirements or (c) Transmission Provider’s or Transmission Owner’s requirements resulting from the Unit’s parallel operation with the Transmission System later necessitate additional Interconnection Assets or modifications to the then existing Interconnection Assets herein, the Parties shall undertake such additions and modifications as may be necessary.  Before undertaking such future additions or modifications, the Parties shall consult, develop plans and coordinate schedules of activities, including the making of necessary amendments to this Agreement (including its Appendices) and/or entering into new agreements, so as to insure continuous and reliable operation of the Interconnection Assets.  The cost of such additions or modifications to the Interconnection Assets shall be borne by Consumers unless otherwise agreed upon at the time.  The ownership, operation and maintenance responsibilities for any such future additions or modifications shall be made consistent with the responsibilities allocated in this Agreement.

3.1.1    Except as otherwise provided under Sections 5.8 and 5.9 of this Agreement, neither Transmission Provider nor Transmission Owner shall have an obligation under this Agreement to pay Consumers any wheeling or other charges for electric power and/or energy transferred through Consumers’ assets or for power or ancillary services provided by Consumers under this Agreement for the benefit of the Transmission System.

3.1.2    Except as otherwise provided under this Agreement, neither Transmission Provider nor Transmission Owner shall have an obligation under this Agreement to make arrangements or pay under applicable tariffs for transmission and ancillary services associated with the delivery of electricity and ancillary electrical products produced by the Unit.

3.1.3    Except as otherwise provided under this Agreement, neither Transmission Provider nor Transmission Owner shall have an obligation under this Agreement to procure electricity and ancillary electrical products to satisfy Consumers’ station power needs or other related requirements.

3.1.4    Except as otherwise provided under this Agreement, neither Transmission Provider nor Transmission Owner shall have an obligation under this Agreement to make arrangements under applicable tariffs for transmission, losses, and ancillary services associated with the use of the Transmission System for the delivery of electricity and ancillary electrical products to the Unit.

3.1.5    Transmission Provider makes no representations to Consumers regarding the availability of Transmission Service on the Transmission System, and Consumers agrees that the availability of Transmission Service on the Transmission System may not be inferred or implied from Transmission Provider’s or Transmission Owner’s execution of this Agreement.  Consumers will obtain Transmission Service on the Transmission System under a separate agreement between the Parties and in accordance with the provisions of the MISO Tariff.

3.2    Third-Party Actions

Consumers acknowledges and agrees that, from time to time during the term of this Agreement, other persons may develop, construct and operate, or acquire and operate generating assets in the Transmission Provider’s service territory, and construction or acquisition and operation of any such assets, and reservations by any such persons of Transmission Service under the MISO Tariff may adversely affect the Unit and the availability of Transmission Service for the Unit’s electric output.  Consumers acknowledges and agrees that Transmission Provider has no obligation under this Agreement to disclose to Consumers any information with respect to third-party developments or circumstances, including the identity or existence of any such person or other assets, beyond what Transmission Provider customarily provides to other similarly situated generators, except as may be required under Article 4 of this Agreement and elsewhere in this Agreement.  Consumers and Transmission Provider make no guarantees to the other under this Agreement with respect to Transmission Service that is available under the MISO Tariff.

ARTICLE 4
INTERCONNECTION ASSETS

4.1    Reservation of Rights to Interconnection Assets
Except as provided in Section 5.2 hereof, each Party reserves to itself the ownership, operation and maintenance of its Interconnection Assets and all improvements, additions or extensions to its Interconnection Assets under this Agreement which are attributable to or necessitated by the interconnection of the Unit.

4.2    Modifications
Either Party may undertake modifications to its assets. In the event a Party plans to undertake a modification that may be expected to impact the other Party's assets, that Party shall provide the other Party with sufficient information regarding such modification, including, without limitation, the notice required in accordance with Article 11 of this Agreement so that the other Party can evaluate the potential impact of such modification prior to commencement of the work. The Party desiring to perform such work shall provide the relevant drawings, plans, and specifications to the other Party at least ninety (90) days in advance of commencement of the work or such shorter period upon which the Parties may agree, which agreement will not unreasonably be withheld or delayed.

4.3    As-Built Drawings
Upon execution of this Agreement, Consumers shall provide to Transmission Provider and Transmission Owner current interconnection drawings and system diagrams for each of its Units, unless 

the Parties agree that such drawings are not necessary.  Subject to the requirements of Article 17 of this Agreement, not later than ninety (90) days after completion of any addition to or modification of the assets of any of said Units that may reasonably be expected to affect the Transmission System, Consumers shall issue revised "as built" drawings to Transmission Provider and Transmission Owner.

ARTICLE 5
OPERATIONS
5.1    General
The Parties agree that they shall comply with the Operating Agreement, then-existing (or amended) applicable manuals, standards, and guidelines of Transmission Provider, NERC, ECAR, or any successor agency assuming or charged with similar responsibilities related to the operation and reliability of the North American electric interconnected transmission grid.  To the extent that this Agreement does not specifically address or provide the mechanisms necessary to comply with such Operating Agreement, Transmission Provider, NERC or ECAR manuals, standards, or guidelines, the Parties hereby agree that each Party shall provide to the other Parties all such information as may reasonably be required to comply with such Operating Agreement, manuals, standards, or guidelines and shall operate, or cause to be operated, their respective assets in accordance with such Operating Agreement, manuals, standards, or guidelines. 

5.2    Transmission Provider and Transmission Owner Obligations
Transmission Provider and Transmission Owner shall operate and control the Transmission System and other Transmission Owner assets in a safe and reliable manner (a) in accordance with Transmission Provider’s and Transmission Owner’s applicable operational and/or reliability criteria, protocols, and directives (which include those of NERC and ECAR), (b) the Operating Agreement and (c) in accordance with the provisions of this Agreement.  From time to time, Consumers will control and operate four (4) 345 kV synchronizing circuit breakers (Nos. 28H9, 28R8, 32F7 and 32H9 in the Hampton Substation) to connect or disconnect the Karn 3 or Karn 4 Units, as the case may be, from the Transmission System.  The Parties may agree from time to time that Consumers, under the direction of the Transmission Provider or Transmission Owner, will operate certain other Interconnection Assets of the Transmission Owner.

5.3    Consumers Obligations
Consumers shall operate and control its Generation Resources in a safe and reliable manner in accordance with (a) Consumers’ applicable operational and/or reliability criteria, protocols, and directives (which shall include those of NERC and ECAR), (b) the Operating Agreement and (c) the provisions of this Agreement.

5.4    Jointly Owned Assets
Operation of Jointly Owned Assets at the electric substations where Interconnection Facilities are located will be under the direction and control of the Party with more than fifty percent (50%) of the major equipment at each such location, unless otherwise agreed by the Parties hereto.  Said Party shall operate the Jointly Owned Assets in a manner consistent with Good Utility Practice and the provisions of Sections 5.2 and 5.3 above, as appropriate.  Each Party’s respective share of responsibility for the costs of operation of Jointly Owned Assets shall be the same percentage as the percentage of major equipment owned by such Party in that substation, as set forth in Exhibit B and its subsequent addendum’s.  The respective ownership of substation facilities is shown in the Wiring Diagrams for each of the electrical substations at which Consumers’ Generation Resources are connected to the Transmission System (see Exhibit B), reflecting ownership changes through July 24, 2008.  The Wiring Diagrams (WDs) will be updated continuously in each Party’s Drawing Management System (DMS) which is shared between the Parties.  For current ownership (reflecting ownership changes since July 24, 2008), see the WDs in the 

DMS.  For purposes of this Agreement, major equipment is defined as (a) main power transformers, (b) 23 kV, 46 kV, 138 kV and 345 kV circuit breakers, (c) power system regulators and reclosers and (d) 46 kV and 138 kV capacitor banks (any three-phase installation of such equipment shall count as one unit of equipment).  Exhibit B shall be updated with an addendum at least annually by the Transmission Owner, and approved in writing by all Parties at least annually, to show all changes in equipment and the effects of such changes on the determination of Jointly Owned Asset percentages. For purposes of this Section 5.4, such submission and approval of changes shall be in writing consistent with Section 21.1.  In the case where each Party hereto owns exactly fifty percent (50%) of the major equipment at any specific location, the Transmission Owner shall assume the responsibility for direction and control of the operation activities as such location.  In those substations where each Party hereto owns assets, each Party shall be responsible for its appropriate share, as set forth in Exhibit B hereto, of station power energy usage and expense.

5.5    Access Rights
The Parties shall provide each other such access rights as may be necessary for either Party's performance of its respective operational obligations under this Agreement; provided that, notwithstanding anything stated herein, a Party performing operational work within the boundaries of the other Party's assets must abide by the rules applicable to that site.

5.6    Switching and Tagging Rules
The Parties shall abide by their respective Switching and Tagging Rules for obtaining clearances for work or for switching operations on assets. The Parties will adopt mutually agreeable Switching and Tagging Rules prior to the effective date of this Agreement.

5.7    Black Start Participation
In accordance with Good Utility Practice, Consumers agrees to participate in Transmission Owner’s Black Start Plan, as well as any verification testing.  Nothing in this Agreement obligates a particular Unit to provide Black Start Service. 

5.8    Reactive Power
The supply and absorption of reactive power is dealt with in the Purchase and Sale Agreement for Ancillary Services among the Parties hereto.

5.9    System Security
During an Emergency on the Transmission System or on an adjacent transmission system, the System Operator has the authority to direct Consumers to increase or decrease real power production (measured in MW) and/or reactive power production (measured in MVAR), within the design and operational limitations of any of Consumers’ Generation Resources in service at the time, in order to maintain security on the Transmission System. In the event of such a declaration of an Emergency, determinations: (a) that the Transmission System security is in jeopardy, and/or (b) that there is a need to increase or decrease reactive power production, even if real power production is adversely affected, will be made solely by the System Operator or his designated representative. Each Unit operator will honor System Operator's orders and directives concerning said Unit’s real power and/or reactive power output within design and operational limitations of the Unit's equipment in service at the time, such that the security of the Transmission System is maintained.  Transmission Provider and Transmission Owner shall restore the Transmission System conditions to normal to alleviate any such Emergency, in accordance with Good Utility Practice.  Consumers will be compensated by Transmission Provider or Transmission Owner for increasing or decreasing the real power output of any of its Units as directed by the System Operator to support the Transmission System during an Emergency by the payment of (a) Consumers’ Incremental Cost associated with such increase or decrease in real power output or (b) at such other rate 

filed by a Party and approved by the Commission including any existing tariff or rate schedule which has been filed by the Transmission Provider, Transmission Owner or Consumers.  Similarly, if the Transmission Provider or Transmission Owner requests any of Consumers’ Units to provide or absorb reactive power that would be outside of the Unit’s Reactive Design Limitations, requiring the Unit’s real power output to be reduced to obtain the desired reactive power, the Transmission Provider or Transmission Owner shall compensate Consumers at the real power rate discussed in the preceding sentence, to the extent that the Unit had to reduce real power output to operate within its Reactive Design Limitations, unless otherwise provided in another agreement or tariff on file with the Commission.

5.10    Consumers Voltage Regulation
Consumers shall have sufficient voltage regulation at each Unit to maintain an acceptable voltage level for the equipment at the Unit during periods of time that the Unit’s generation is off line. 

5.11    Protection and System Quality
Consumers shall, at its expense, install, maintain, and operate System Protection Assets, including such protective and regulating devices as are identified by order, rule or regulation of any duly constituted regulatory authority having jurisdiction, or as are otherwise necessary to protect personnel and assets and to minimize deleterious effects to Transmission Provider’s or Transmission Owner’s electric service operation arising from the Unit.  Transmission Owner shall install any such protective or regulating devices that may be required on Transmission Owner’s assets in connection with the operation of the Unit at Consumers’ expense.

5.11.1    Requirements for Protection.  In compliance with applicable NERC, ECAR and Transmission Provider’s and Transmission Owner’s requirements, Consumers shall provide, own, and maintain relays, circuit breakers and all other devices necessary to promptly remove any fault contribution of the Unit to any short circuit occurring on the Transmission  System not otherwise isolated by Transmission Owner’s assets. Such protective assets shall include, without limitation, a disconnecting device or switch with visible blade disconnect and load interrupting capability to be located between the Unit and the Transmission System at an accessible, protected, and satisfactory site selected upon mutual agreement of the Parties. The present integrated system provides for fault clearing at the generation substations.  Unit protection may not be able to detect all short circuits, but the Parties agree that no other arrangements shall be required.  Consumers shall be responsible for protection of the Unit and Consumers’ other associated assets from such conditions as negative sequence currents, over- or under-frequency, sudden load rejection, over- or under-voltage, and generator loss-of-field. Consumers shall be solely responsible for provisions to disconnect the Unit and Consumers’ other associated assets when any of the disturbances described above occur on the Transmission System.

5.11.2    System Power Quality.  Consumers’ facilities and equipment shall not cause excessive voltage flicker nor introduce excessive distortion to the sinusoidal voltage or current waves.  Power output from and input to the Unit shall be in accordance with the power quality standards contained in IEEE Standards 141 - Recommended Practice for Electrical Power Distribution for Industrial Plants (voltage flicker) and 519 - Recommended Practices and Requirements for Harmonic Control in Electric Power Systems (harmonics).  Consumers’ facilities and equipment have been designed and constructed in accordance with then-existing standards so as not to cause excessive voltage excursions nor cause the voltage to drop below or rise above the range maintained by Transmission Provider or Transmission Owner in the absence of Consumers’ facilities and equipment at the time the Unit first went into service.

5.11.3    Inspection.  Subject to the confidentiality provisions set forth in Article 17, Transmission Provider and Transmission Owner shall have the right, but shall have no obligation or responsibility to (a) observe Consumers’ tests and/or inspection of any of Consumers’ protective assets directly connected to 

the Transmission System or interfacing with Transmission Owner’s protective assets, (b) review the settings of any of Consumers’ protective assets; and (c) review Consumers’ maintenance records relative to Consumers’ protective assets.  Transmission Provider and Transmission Owner may exercise the foregoing rights from time to time as deemed necessary by Transmission Provider or Transmission Owner upon reasonable notice to Consumers. However, the exercise or non-exercise by Transmission Provider or Transmission Owner of any of the foregoing rights of observation, review or inspection shall be construed neither as an endorsement or confirmation of any aspect, feature, element, or condition of the Unit or Consumers’ protective assets or the operation thereof, nor as a warranty as to the fitness, safety, desirability, or reliability of same.

5.12    Outages, Interruptions, and Disconnection

5.12.1    Outage Authority and Coordination.  In accordance with Good Utility Practice, each Party may, in close cooperation with the other and upon providing notice per Section 20.2, remove from service its assets that may impact the other Party's assets as necessary to perform maintenance or testing or to install or replace assets.  Absent the existence or imminence of an Emergency, the Party scheduling a removal of a facility from service will schedule such removal on a date mutually acceptable to both Parties.  Further, the Transmission Provider and Transmission Owner shall use their best efforts to coordinate the scheduling of maintenance on Transmission Owner’s Interconnection Assets to coincide with Consumers scheduled maintenance on its Units that may be impacted by maintenance on Transmission Owner’s Interconnection Assets. 

5.12.2    Outage Restoration.

5.12.2.1    Unplanned Outage.  In the event of an unplanned outage of a Party's facility that adversely affects the other Party's assets, the Party that owns or controls the facility out of service will use commercially reasonable efforts to promptly restore that facility to service.

5.12.2.2    Planned Outage.  In the event of a planned outage of a Party's facility that adversely affects the other Party's assets, the Party that owns or controls the facility out of service will use commercially reasonable efforts to promptly restore that facility to service and in accordance with its schedule for the work that necessitated the planned outage.

5.12.3    Interruption.  If at any time, in Transmission Provider’s or Transmission Owner’s reasonable judgment, the continued operation of the Unit would cause an Emergency, Transmission Provider or Transmission Owner may curtail, interrupt, or reduce energy delivered from the Unit to the Transmission System until the condition which would cause the Emergency is corrected.  Transmission Provider or Transmission Owner shall give Consumers as much notice as is reasonably practicable of Transmission Provider’s or Transmission Owner’s intention to curtail, interrupt, or reduce energy delivery from the Unit in response to a condition that would cause an Emergency and, where practicable, allow suitable time for the Parties to remove or remedy such condition before any such curtailment, interruption, or reduction commences.  In the event of any curtailment, interruption, or reduction, Transmission Provider or Transmission Owner shall promptly confer with Consumers regarding the conditions that gave rise to the curtailment, interruption, or reduction, and Transmission Provider or Transmission Owner shall give Consumers Transmission Provider’s or Transmission Owner’s recommendation, if any, concerning the timely correction of such conditions.  Transmission Provider or Transmission Owner shall promptly cease the curtailment, interruption, or reduction of energy delivery when the condition that would cause the Emergency ceases to exist.

5.12.4    Disconnection.

5.12.4.1    Disconnection after Agreement Terminates.  Upon termination of the Agreement, Transmission Provider or Transmission Owner may disconnect Consumers’ Generation Resources from the Transmission System in accordance with a plan for disconnection upon which the Parties agree.

5.12.4.2    Disconnection in Event of Emergency.  Subject to the provisions of Subsection 5.12.4.3 of this Agreement, Transmission Provider, Transmission Owner or Consumers shall have the right to disconnect the Unit without notice if, in Transmission Provider’s, Transmission Owner’s or Consumers’ sole opinion, an Emergency exists and immediate disconnection is necessary to protect persons or property from damage or interference caused by Consumers’ interconnection or lack of proper or properly operating protective devices.  For purposes of this Subsection 5.12.4.2, protective devices may be deemed by Transmission Provider or Transmission Owner to be not properly operating if Transmission Provider’s or Transmission Owner’s review under Article 6 of this Agreement has disclosed irregular or otherwise insufficient maintenance on such devices or that maintenance records do not exist or are otherwise insufficient to demonstrate that adequate maintenance has been and is being performed.

5.12.4.3    Disconnection after Under-frequency Load Shed Event.  NERC Planning Criteria require the interconnected transmission system frequency be maintained between 59.95 Hz and 60.05 Hz.  In case of an under-frequency system disturbance, the Transmission System is designed to automatically activate a five-tier load shed program.  The five load sheds occur at 59.5, 59.3, 59.1, 58.9 and 58.7 Hz, respectively.  For those Units that are determined by Transmission Provider to be large enough to impact the Transmission Provider’s system security, each such Unit shall be capable of under-frequency operation as specified in Appendix 1 “Isolation of Generating Units” contained in ECAR Document No. 3 - Emergency Operations, or a higher under-frequency set point if already in place upon execution of this Agreement.  Upon notice from Consumers and if the Transmission Provider or Transmission Owner agrees, Consumers may implement a higher under-frequency relay set point if necessary to protect its assets for a particular Unit or Units.

5.12.5    Continuity of Service.  Notwithstanding any other provision of this Agreement, Transmission Provider shall not be obligated to accept, and Transmission Provider may require Consumers to curtail, interrupt or reduce deliveries of energy if such delivery of energy impairs Transmission Provider’s or Transmission Owner’s ability to construct, install, repair, replace or remove any of its equipment or any part to its system or if Transmission Provider or Transmission Owner determines that curtailment, interruption or reduction is necessary because of Emergencies, forced outages, operating conditions on its system, or any reason otherwise  permitted by applicable rules or regulations promulgated by a regulatory agency having jurisdiction over such matters.  The Parties shall coordinate, and if necessary negotiate in good faith, the timing of such curtailments, interruptions, reductions or deliveries with respect to maintenance, investigation or inspection of Transmission Owner’s assets or system. Consumers reserves all rights under the Federal Power Act and applicable other federal and state laws and regulations to commence a complaint proceeding or other action with the Commission or other Governmental Authority with appropriate jurisdiction over the Parties to enforce the provisions of this Subsection 5.12.5.

5.12.6    Curtailment Notice.  Except in case of Emergency, in order not to interfere unreasonably with the other Party's operations, the curtailing, interrupting or reducing Party shall give the other Party reasonable prior notice of any curtailment, interruption or reduction, the reason for its occurrence, and its probable duration.

5.13    Operating Expenses

Consumers shall reimburse Transmission Owner for all direct and indirect costs and expenses (including but not limited to telephone circuit charges, property taxes, insurance and assets testing) incurred by Transmission Owner in operating Transmission Owner’s Interconnection Assets, to the extent that Transmission Owner is not otherwise recovering such costs and expenses under an existing tariff or rate schedule which has been filed by Transmission Provider or Transmission Owner and accepted by FERC.  Such costs and expenses shall be determined by Transmission Owner in accordance with the standard practices and policies followed by Transmission Provider or Transmission Owner for the performance of work for others in effect at the time such operation work is performed.  Payment by Consumers shall be made in accordance with the provisions of Article 12 hereof. 

ARTICLE 6
MAINTENANCE

6.1    Transmission Owner’s Obligations
Transmission Owner shall maintain its assets, to the extent they might reasonably be expected to have an impact on the operation of the Unit (a) in a safe and reliable manner in accordance with applicable operational and/or reliability criteria, protocols, and directives (which include those of NERC and ECAR), (b) in accordance with the provisions of the Operating Agreement and (c) in accordance with the provisions of this Agreement.

6.2    Consumers’ Obligations
Consumers shall maintain its assets, to the extent they might reasonably be expected to have an impact on the operation of the Transmission System (a) in a safe and reliable manner in accordance with applicable operational and/or reliability criteria, protocols, and directives (which include those of NERC and ECAR), (b) in accordance with the provisions of the Operating Agreement and (c) in accordance with the provisions of this Agreement.

6.3    Jointly Owned Assets
Maintenance of Jointly Owned Assets at the electric substations where Interconnection Facilities are located will be under the direction and control of the Party with more than fifty percent (50%) of the major equipment at each such location, unless otherwise agreed by the Parties hereto.  Said Party shall maintain the Jointly Owned Assets in a manner consistent with Good Utility Practice and the provisions of Sections 6.1 and 6.2 above, as appropriate.  Each Party’s respective share of responsibility for the costs of maintenance of Jointly Owned Assets shall be the same percentage as the percentage of major equipment owned by such Party in that substation, as set forth in Exhibit B and its subsequent addendum.  For purposes of this Agreement, major equipment is defined as set forth in Section 5.4 hereto.   Exhibit B shall be updated with an addendum at least annually by the Transmission Owner, and approved in writing by Consumers, to show all changes in equipment and the effects of such changes on the determination of Jointly Owned Asset percentages.  In the case where each Party hereto owns exactly fifty percent (50%) of the major equipment at any specific location, the Transmission Owner shall assume the responsibility for direction and control of the maintenance activities at such location.

6.4    Access Rights
The Parties shall provide each other such access rights as may be necessary for either Party's performance of their respective maintenance and/or construction obligations under this Agreement; provided that, notwithstanding anything stated herein, a Party performing maintenance and/or 

construction work within the boundaries of the other Party's assets must abide by the rules applicable to that site.

6.5    Maintenance Expenses
Consumers shall reimburse Transmission Owner for all direct and indirect costs and expenses (including but not limited to inspection, repair and replacement) incurred by Transmission Owner in maintaining Transmission Owner’s Interconnection Assets, to the extent that Transmission Owner is not otherwise recovering such costs and expenses under an existing tariff or rate schedule which has been filed by Transmission Provider or Transmission Owner and accepted by FERC.  Such costs and expenses shall be determined by Transmission Owner in accordance with the standard practices and policies followed by Transmission Provider or Transmission Owner for the performance of work for others in effect at the time such operation work is performed.  Payment by Consumers shall be made in accordance with the provisions of Article 12 of this Agreement.

6.6    Coordination
The Parties agree to confer regularly to coordinate the planning and scheduling of preventative and corrective maintenance.  Each Party shall conduct preventive and corrective maintenance activities as planned and scheduled in accordance with this Section 6.5 and the Operating Agreement.

6.7    Inspections and Testing
Each Party shall perform routine inspection and testing of its assets in accordance with Good Utility Practice as may be necessary to ensure the continued interconnection of each Unit with the Transmission System in a safe and reliable manner.

6.8    Right to Observe Testing
Each Party shall, at its own expense, have the right to observe the testing of any of the other Party's assets whose performance may reasonably be expected to affect the reliability of the observing Party's assets.  Each Party shall notify the other Party in advance of its performance of tests of its assets, and the other Party may have a representative attend and be present during such testing.

6.9    Secondary Systems
Each Party agrees to cooperate with the other in the inspection, maintenance, and testing of those Secondary Systems directly affecting the operation of a Party's assets which may reasonably be expected to impact the other Party.  Each Party will provide advance notice to the other Party before undertaking any work in these areas, especially in electrical circuits involving circuit breaker trip and close contacts, current transformers, or potential transformers.

6.10    Observation of Deficiencies
If a Party observes any deficiencies or defects on, or becomes aware of a lack of scheduled maintenance and testing with respect to, the other Party's assets that might reasonably be expected to adversely affect the observing Party's assets, the observing Party shall either (a) provide notice to the other Party that is prompt under the circumstance or (b) deem such observation an Emergency to life or property and immediately disconnect the Unit pursuant to Subsection 5.12.4.2 of this Agreement, and the other Party shall make any corrections required in accordance with Good Utility Practice.
ARTICLE 7
EMERGENCIES

7.1    Obligations

Each Party agrees to comply with NERC and ECAR Emergency procedures and Transmission Provider, Transmission Owner and Consumers Emergency procedures, as applicable, with respect to Emergencies.

7.2    Notice

Transmission Provider or Transmission Owner shall provide Consumers with oral notification that is prompt under the circumstances of an Emergency that may reasonably be expected to affect Consumers’ operation of any or all of its Generation Resources, to the extent Transmission Provider or Transmission Owner is aware of the Emergency.  Consumers shall provide Transmission Provider and Transmission Owner with oral notification that is prompt under the circumstances of an Emergency that may reasonably be expected to affect the Transmission System, to the extent Consumers is aware of the Emergency.  In lieu of oral notification described in the preceding two sentences, the Parties may agree in advance to use other electronic notification means.  To the extent the Party becoming aware of an Emergency is aware of the facts of the Emergency, such notification shall describe the Emergency, the extent of the damage or deficiency, its anticipated duration, and the corrective action taken and/or to be taken.  Any such notification given pursuant to this Section 7.2 shall be followed as soon as practicable with written notice.

7.3    Immediate Action

In case of an Emergency, the Party becoming aware of the Emergency may, in accordance with Good Utility Practice, take such action as is reasonable and necessary to prevent, avoid, or mitigate injury, danger, and loss, including disconnection pursuant to Subsection 5.12.4.2 of this Agreement. 

7.4    Transmission Provider’s and Transmission Owner’s Authority

Transmission Provider or Transmission Owner may, consistent with Good Utility Practice, take whatever actions with regard to the Transmission System as it may deem necessary during an Emergency in order to (a) preserve public health and safety, (b) preserve the reliability of the Transmission System, (c) limit or prevent damage and (d) expedite restoration of service.  Transmission Provider or Transmission Owner shall use reasonable efforts to minimize the effect of such actions on the Unit.

7.5    Consumers’ Authority

Consumers may, consistent with Good Utility Practice, take whatever actions with regard to the Unit as it may deem necessary during an Emergency in order to (a) preserve public health and safety, (b) preserve the reliability of the Unit, (c) limit or prevent damage and (d) expedite restoration of service.  Consumers shall use reasonable efforts to minimize the effect of such actions on the Transmission System.

7.6    Audit Rights

Each Party shall keep and maintain records of actions taken during an Emergency that may reasonably be expected to impact the other Party's assets and make such records available for third-party independent audit upon the request and expense of the party affected by such action. Any such request for an audit will be no later than twelve (12) months following the action taken.

ARTICLE 8
SAFETY
8.1    General

The Parties agree that all work performed by a Party that may reasonably be expected to affect another Party shall be performed in accordance with Good Utility Practice and all applicable laws, regulations, and other requirements pertaining to the safety of persons or property.  A Party performing work within the boundaries of another Party’s assets must abide by the safety rules applicable to the site.

8.2    Environmental Releases

Each Party shall notify the other Parties, first orally and then in writing, of the release of any Hazardous Substances or any type of remedial activities, such as asbestos or lead abatement, which may reasonably be expected to affect another Party, as soon as possible but not later than twenty-four (24) hours after the Party becomes aware of the occurrence, and shall promptly furnish to the other Parties copies of any reports filed with any governmental agencies addressing such events.

ARTICLE 9
METERING

9.1    General

Transmission Owner shall provide, install, own and maintain Metering Assets necessary to meet its obligations under this Agreement. Notwithstanding the foregoing sentence, Consumers, if mutually agreed by the Parties, may provide and install some, or all, of said Metering Assets, as per Transmission Owner’s specifications.  The Parties agree that, as to all Connection Points in existence as of the effective date of this Agreement, no new Metering Assets or arrangements shall be required.  If necessary, Metering Assets shall be either located or adjusted, at Transmission Provider’s or Transmission Owner’s option, in such manner to account for (a) any transformation or interconnection losses between the location of the meter and the Point of Receipt and (b) any station auxiliary power load of the generating unit.  Metering quantities, in analog and/or digital form, shall be provided to Consumers upon request.  The Parties also agree that Consumers shall continue to maintain records of the Megawatthour and Megavarhour values collected from existing meters on the generating units and provide the information recorded to Transmission Provider or Transmission Owner upon request.

9.2    Costs of Administering Metering Assets

All costs associated with the administration of Metering Assets and the provision of metering data to Consumers shall be born by Consumers.  The costs of administration and of providing metering data shall be separately itemized on Transmission Owner’s invoices to Consumers pursuant to Article 12 of this Agreement.  All costs associated with changes to Metering Assets requested by Consumers, shall be borne by Consumers and shall be invoiced pursuant to Article 12 of this Agreement.

9.3    Testing of Metering Assets

Transmission Owner shall, at Consumers’ expense, inspect and test all Metering Assets not less than once every year, unless an extension of the testing cycle is agreed upon by the Parties. If requested to do so by Consumers and at Consumers’ expense, Transmission Owner shall inspect or test Metering Assets more frequently.  Transmission Owner shall give reasonable notice of the time when any inspection or test shall take place and Consumers may have representatives present at the test or inspection.  If Metering Assets is found to be inaccurate or defective, it shall be adjusted, repaired or replaced at Consumers’ expense, in order to provide accurate metering.  If Metering Assets fails to register, or if the measurement made by Metering Assets during a test varies by more than two percent (2%) from the measurement made by the standard Metering Assets used in the test, adjustment shall be made correcting 

all measurements made by the inaccurate Metering Assets for (a) the actual period during which inaccurate measurements were made, if the period can be determined, or (b) a period equal to one-half of the elapsed time since the last test of the Metering Assets.

9.4    Metering Data

9.4.1    When the Metering Assets location is not at the Point of Receipt, Metering Assets readings shall be adjusted to account for appropriate transformer and line losses, and when applicable, the station auxiliary power load of the Unit.

9.4.2    At Consumers’ expense, all metered data shall be telemetered to one or more locations designated by Transmission Provider and one or more locations designated by Consumers.

9.5    Communications

9.5.1    At Consumers’ expense, Consumers shall maintain satisfactory operating communications with System Operator or representative, as designated by Transmission Provider or Transmission Owner.  Consumers has provided standard voice and facsimile communications in the control room of each of its Units through use of the public telephone system.  Consumers has also provided a 4-wire, full duplex data circuit (or circuits) operating at a minimum of 9600 baud, or at other baud rates as reasonably specified by Transmission Provider or Transmission Owner.  The data circuit(s) extend from each Consumers’ Unit to a location, or locations, specified by Transmission Provider or Transmission Owner.  Any required maintenance of such communications assets shall be performed at Consumers’ expense, and may be performed by Consumers or by Transmission Owner.  Operational communications shall be activated and maintained under, but not be limited to, the following events: system paralleling or separation, scheduled and unscheduled shutdowns, equipment clearances, and hourly and daily load data exchanges.  To the extent required by applicable rules and regulations, Consumers shall (a) request permission from the System Operator prior to opening or closing circuit breakers that affect the Transmission System, (b) carry out switching orders from the System Operator in a timely manner and (c) keep the System Operator advised of the Unit’s operational capabilities as required for reliable operation of the Transmission System.

9.5.2    For all Units 1 MW or larger, a Remote Terminal Unit ("RTU"), or equivalent data collection and transfer equipment acceptable to Consumers and Transmission Owner, has been installed to gather accumulated and instantaneous data to be telemetered to a location, or locations, designated by Transmission Owner through use of dedicated point-to-point data circuits as indicated in Subsection 9.5.1 of this Agreement. Instantaneous bi-directional analog real power and reactive power flow information, circuit breaker status information, instantaneous analog voltage information, metering information, and disturbance monitoring information, as determined by Transmission Provider or Transmission Owner, must be telemetered directly to the location, or locations, specified by Transmission Provider or Transmission Owner.

    
ARTICLE 10
FORCE MAJEURE

10.1    An event of Force Majeure means any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or assets, any curtailment, order, regulation or restriction imposed by governmental military or lawfully established 

civilian authorities, or any other cause beyond a Party's reasonable control.  A Force Majeure event does not include an act of negligence or intentional wrongdoing.

10.2    If either Party is rendered unable, wholly or in part, by Force Majeure, to carry out its obligations under this Agreement, then, during the continuance of such inability, the obligation of such Party shall be suspended except that Consumers’ obligation under Section 5.11 of this Agreement to provide protection while operating in parallel with the Transmission System shall not be suspended.  The Party relying on Force Majeure shall give written notice of Force Majeure to the other Party as soon as practicable after such event occurs.  Upon the conclusion of Force Majeure, the Party heretofore relying on Force Majeure shall, with all reasonable dispatch, take all necessary steps to resume the obligation previously suspended.

10.3    Any Party’s obligation to make payments already owing shall not be suspended by Force Majeure.

ARTICLE 11
INFORMATION REPORTING

Each Party shall, in accordance with Good Utility Practice, promptly provide to the other Parties all relevant information, documents, or data regarding the Party's assets which may reasonably be expected to pertain to the reliability of the other Parties’ assets and/or which has been reasonably requested by the other Parties.

ARTICLE 12
PAYMENTS AND BILLING PROCEDURES

12.1    Invoices

Any invoices for reimbursable services provided to another Party under this Agreement during the preceding month shall be prepared within a reasonable time after the first day of each month.  Each invoice shall delineate the month in which services were provided, shall fully describe the services rendered and shall be itemized to reflect the services performed or provided.  The invoice shall be paid so that the other Party will receive the funds by the 20th day following the date of such invoice, or the first business day thereafter if the payment date falls on other than a business day.  All payments shall be made in immediately available funds payable to another Party, or by wire transfer to a bank named by the Party being paid, provided that payments expressly required by this Agreement to be mailed shall be mailed in accordance with Section 12.2.

12.2    Payments 

Any payments to be made by Consumers under this Agreement shall be made to Transmission Owner at the following address:

Michigan Electric Transmission Company, LLC
P.O. Box 673971
Detroit, MI 48267-3971
Attn:  Accounting Department

If paying by wire transfer, please see the wiring instructions on the invoice.

Any payments to be made by Transmission Owner under this Agreement shall be made to Consumers at the following address:

Consumers Energy Company
One Energy Plaza
Jackson, Michigan 49201
Attn:  Treasurer

The Parties shall provide the names of appropriate contact personnel, as are set forth in this Agreement or otherwise, to each other after this Agreement is executed and shall keep said listing of names and addresses up to date.

12.3    Interest Charges

Interest on any unpaid amounts shall be calculated in accordance with the methodology specified for interest on refunds in the Commission’s regulations at 18 CFR. §35.19 (a)(2)(iii).  Interest on delinquent amounts shall be calculated from the due date of the invoice to the date of payment.  When payments are made by mail, invoices shall be considered as having been paid on the date of receipt by Transmission Owner or Consumers, as the case may be.

12.4    Disputes

In the event of a billing dispute between Transmission Owner and Consumers, the Parties shall continue to provide services and pay all invoiced amounts not in dispute.  While the dispute is being resolved, the Parties shall continue to provide services and pay all invoiced amounts not in dispute.  Following resolution of the dispute, the prevailing Party shall be entitled to receive the disputed amount, as finally determined to be payable, along with interest accrued through the date on which payment is made at the interest rate pursuant to Section 13.3.  Payment shall be due within ten (10) days of resolution. 

ARTICLE 13
ASSIGNMENT

13.1    This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the respective parties hereto.  This Agreement shall not be transferred or otherwise alienated by any Party without the other Parties' prior written consent, which consent shall not be unreasonably withheld, provided that any assignee shall expressly assume assignor's obligations hereunder and, unless expressly agreed to by the other Parties, no assignment shall relieve the assignor of its obligations hereunder in the event its assignee fails to perform.   Any attempted assignment, transfer or other alienation without such consent shall be void and not merely voidable.

13.2    Notwithstanding the above, the Transmission Provider or Transmission Owner shall be permitted to assign or otherwise transfer this Agreement, or its rights, duties and obligations hereunder, in whole or in part, by operation of law or otherwise, without the prior written consent of Consumers, to any successor to or transferee of the direct or indirect ownership or operation of all or part of the transmission system to which the Generation Resources are connected.  Upon the assumption by any such permitted assignee of the assigning Transmission Provider’s or Transmission Owner’s rights, duties and obligations hereunder, the assigning Transmission Provider or Transmission Owner shall be released and discharged therefrom to the extent provided in the assignment agreement. 

13.3    Notwithstanding the above, Consumers may assign this Agreement to a bank pursuant to the terms of an Assignment and Security Agreement without the prior written consent of Transmission Provider or Transmission Owner provided that such assignment shall not be effective as to Transmission Provider or Transmission Owner until it receives a fully executed copy thereof.

ARTICLE 14
INDEMNITY AND INSURANCE

14.1    Indemnity

The Parties shall at all times assume all liability for, and shall indemnify and save the other Parties harmless from any and all damages, losses, claims, demands, suits, recoveries, costs, legal fees, expenses for injury to or death of any person or persons whomsoever, or for any loss, destruction of or damage to any property of third persons, firms, corporations or other entities that occurs on its own system and that arises out of or results from, either directly or indirectly, its own assets or assets controlled by it, unless caused by the sole negligence, or intentional wrongdoing, of another Party.

14.2    Insurance

14.2.1    The Parties agree to maintain, at their own cost and expense, the following insurance coverages for the life of this Agreement in the manner and amounts, at a minimum, as set forth below:

		
	(a)
	Workers’ Compensation Insurance in accordance with all applicable State, Federal, and Maritime Law.

		
	(b)
	Employer’s Liability insurance in the amount of $1,000,000 per accident.

		
	(c)
	Commercial General Liability or Excess Liability Insurance in the amount of $25,000,000 per occurrence.

		
	(d)
	Automobile Liability Insurance for all owned, non-owned, and hired vehicles in the amount of $5,000,000 each accident.

14.2.2    A Party may, at its option, [A] be an approved self-insurer for the insurances required in 1.(a) and (d); and [B] maintain such deductibles and/or retentions under the insurance required in 1.(b) and (c) as is maintained by other similarly situated companies engaged in a similar business.  The Parties agree that all amounts of self-insurance, retentions and/or deductibles are the responsibility of, and shall be borne by, the Party whom makes such an election.

14.2.3    Within fifteen (15) days of the Effective Date and thereafter when requested, in writing, but not more than once every 12 months, during the term of this Agreement (including any extensions) each Party shall provide to the other Parties properly executed and current certificates of insurance or evidence of approved self-insurance status with respect to all insurance required to be maintained by such Party under this Agreement.  Certificates of insurance shall provide the following information:

		
	(a)
	Name of insurance company, policy number and expiration date.

		
	(b)
	The coverage maintained and the limits on each, including the amount of deductibles or retentions, which shall be for the account of the Party maintaining such policy.

		
	(c)
	The insurance company shall endeavor to provide thirty (30) days prior written notice of cancellation to the certificate holder.

ARTICLE 15
LIMITATION ON LIABILITY

NO PARTY SHALL IN ANY EVENT BE LIABLE TO THE OTHER PARTIES FOR ANY SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES SUCH AS, BUT NOT LIMITED TO, LOST PROFITS, REVENUE OR GOOD WILL, INTEREST, LOSS BY REASON OF SHUTDOWN OR NON-OPERATION OF EQUIPMENT OR MACHINERY, INCREASED EXPENSE OF OPERATION OF EQUIPMENT OR MACHINERY, COST OF PURCHASED OR REPLACEMENT POWER OR SERVICES OR CLAIMS BY CUSTOMERS, WHETHER SUCH LOSS IS BASED ON CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE.

    

ARTICLE 16
BREACH, CURE AND DEFAULT

16.1    General

A breach of this Agreement ("Breach") shall occur upon the failure by a Party to perform or observe any material term or condition of this Agreement.  Default of this Agreement ("Default") shall occur upon the failure of a Party in Breach of this Agreement to cure such Breach in accordance with the provisions of Section 16.4 of this Agreement.

16.2    Events of Breach

A Breach of this Agreement shall include:

16.2.1    The failure to pay any amount when due;

16.2.2    The failure to comply with any material term or condition of this Agreement, including but not limited to any material Breach of a representation, warranty or covenant made in this Agreement;

16.2.3    If a Party: (a) becomes insolvent; (b) files a voluntary petition in bankruptcy under any provision of any federal or state bankruptcy law or shall consent to the filing of any bankruptcy or reorganization petition against it under any similar law; (c) makes a general assignment for the benefit of its creditors or (d) consents to the appointment of a receiver, trustee or liquidator;

16.2.4    Assignment of this Agreement in a manner inconsistent with the terms of this Agreement;

16.2.5    Failure of a Party to provide such access rights, or a Party's attempt to revoke or terminate such access rights, as provided under this Agreement; or

16.2.6    Failure of a Party to provide information or data to the other Parties as required under this Agreement, provided the Party entitled to the information or data under this Agreement requires such information or data to satisfy its obligations under this Agreement.

16.3    Continued Operation

In the event of a Breach or Default by a Party, the Parties shall continue to operate and maintain, as applicable, such DC power systems, protection and Metering Assets, Telemetering Assets, SCADA equipment, transformers, Secondary Systems, communications assets, building assets, software, documentation, structural components, and other assets and appurtenances that are reasonably necessary for Transmission Provider or Transmission Owner to operate and maintain the Transmission System and for Consumers to operate and maintain the Unit, in a safe and reliable manner.

16.4    Cure and Default

Upon the occurrence of an event of Breach, the Party or Parties not in Breach (hereinafter the "Non-Breaching Party"), when it becomes aware of the Breach, shall give written notice of the Breach to the Breaching Party and to any other person the Parties to this Agreement identify in writing to the other Parties in advance.  Such notice shall set forth, in reasonable detail, the nature of the Breach, and where known and applicable, the steps necessary to cure such Breach.  Upon receiving written notice of the Breach hereunder, the Breaching Party shall have thirty (30) days to cure such Breach.  If the Breach is such that it cannot be cured within thirty (30) days, the Breaching Party will commence in good faith all steps as are reasonable and appropriate to cure the Breach within such thirty (30) day time period and thereafter diligently pursue such action to completion.  In the event the Breaching Party fails to cure the Breach, or to commence reasonable and appropriate steps to cure the Breach, within thirty (30) days of becoming aware of the Breach; the Breaching Party will be in Default of the Agreement.

16.5    Right to Compel Performance

Notwithstanding the foregoing, upon the occurrence of an event of Default, the non-Defaulting Party or Parties shall be entitled to: (a) commence an action to require the Defaulting Party to remedy such Default and specifically perform its duties and obligations hereunder in accordance with the terms and conditions hereof and (b) exercise such other rights and remedies as it may have in equity or at law.

ARTICLE 17
CONFIDENTIALITY

17.1    All information regarding a Party (the “Disclosing Party”) that is furnished directly or indirectly to another Party (the “Recipient”) pursuant to this Agreement and marked “Confidential” shall be deemed “Confidential Information”.  Notwithstanding the foregoing, Confidential Information does not include information that (i) is rightfully received by Recipient from a third party having an obligation of confidence to the Disclosing Party, (ii) is or becomes in the public domain through no action on Recipient’s part in violation of this Agreement, (iii) is already known by Recipient as of the date hereof, or (iv) is developed by Recipient independent of any Confidential Information of the Disclosing Party.  Information that is specific as to certain data shall not be deemed to be in the public domain merely because such information is embraced by more general disclosure in the public domain.

17.1.1    Recipient shall keep all Confidential Information strictly confidential and not disclose any Confidential Information to any third party for a period of two (2) years from the date the Confidential Information was received by Recipient, except as otherwise provided herein.

17.1.2    Recipient may disclose the Confidential Information to its affiliates and its affiliates’ respective directors, officers, employees, consultants, advisors, and agents who need to know the 

Confidential Information for the purpose of assisting Recipient with respect to its obligations under this Agreement.  Recipient shall inform all such parties, in advance, of the confidential nature of the Confidential Information.  Recipient shall cause such parties to comply with the requirements of this Agreement and shall be responsible for the actions, uses, and disclosures of all such parties.  

17.1.3    If Recipient becomes legally compelled or required to disclose any of the Confidential Information (including, without limitation, pursuant to the policies, methods, and procedures of the FERC, including the OASIS Standards of Conduct, or other Regulatory Authority), Recipient will provide the Disclosing Party with prompt written notice thereof so that the Disclosing Party may seek a protective order or other appropriate remedy.  Recipient will furnish only that portion of the Confidential Information which its counsel considers legally required, and Recipient will cooperate, at the Disclosing Party’s expense, with the Disclosing Party’s counsel to enable the Disclosing Party to obtain a protective order or other reliable assurance that confidential treatment will be accorded the Confidential Information.  It is further agreed that, if, in the absence of a protective order, Recipient is nonetheless required to disclose any Confidential Information, Recipient will furnish only that portion of the Confidential Information which its counsel considers legally required.

ARTICLE 18
AUDIT RIGHTS

Subject to the requirements of confidentiality under Article 17 of this Agreement, each Party shall have the right, during normal business hours, and upon prior reasonable notice to another Party, to audit one another's accounts and records pertaining to the Party's performance and/or satisfaction of obligations arising under this Agreement.  Said audit shall be performed at the offices where such accounts and records are maintained and shall be limited to those portions of such accounts and records that relate to obligations under this Agreement.

ARTICLE 19
DISPUTES

The Dispute Resolution Procedures set forth in the MISO Tariff shall apply to all disputes arising under this Agreement.  

ARTICLE 20
NOTICES

20.1    Any notice, demand or request required or permitted to be given by a Party to another and any instrument required or permitted to be tendered or delivered by a Party to another may be so given, tendered or delivered, as the case may be, by depositing the same in any United States Post Office with postage prepaid, for transmission by certified or registered mail, addressed to the Party, or personally delivered to the Party, at the address set out below:

To Transmission Owner:
Michigan Electric Transmission Company, LLC
27175 Energy Way 
Novi, MI  48377 
Attn: Legal Department - Contracts 

To Consumers:
Consumers Energy Company

1945 W. Parnall Road
Jackson, Michigan 49201
Attn:  Director of Staff - Energy Resources Business Services

To Transmission Provider:
Midcontinent Independent System Operator, Inc.
Attn:  Manager, Interconnection Planning
701 City Center Drive
Carmel, IN 46032
20.2    The Parties shall use standard telephone circuits as the primary communication link for generation dispatch communications, including with respect to dispatching energy in the event of an Emergency and declaring unit capability.  The Parties shall provide the names and telephone numbers of appropriate contact personnel, as are set forth in this Agreement or otherwise, to each other after this Agreement is executed and shall keep said listing of names and telephone numbers up to date.

ARTICLE 21
MISCELLANEOUS

21.1    Amendments

This Agreement may be amended by and only by a written instrument duly executed by the Parties hereto. No change or modification as to any of the provisions hereof shall be binding on any Party unless approved in writing and approved by the duly authorized officers of the Parties.  Notwithstanding the foregoing, nothing contained herein shall be construed as affecting in any way the right of Transmission Provider, Transmission Owner or Consumers to unilaterally make application to the Commission for a change in rates, terms or conditions of service under Sections 205 and 206 of the Federal Power Act and pursuant to the Commission's Rules and Regulations promulgated thereunder.  Transmission Provider reserves the right to file rate schedules with the Commission concerning any services Transmission Provider deems necessary for reliable and orderly bulk power system management, including but not limited to any standby or related services that may arise from a failure by Consumers to meet its schedule of deliveries across the assets covered by this Agreement.

21.2    Binding Effect

This Agreement and the rights and obligations hereof, shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties hereto.

21.3    Counterparts

This Agreement may be executed in any number of counterparts, and each executed counterpart shall have the same force and effect as an original instrument.

21.4    Entire Agreement

This Agreement constitutes the entire agreement among the Parties hereto with reference to the subject matter hereof and its execution superseded all previous agreements, discussions, communications and correspondence with respect to said subject matter. The terms and conditions of this Agreement and every Exhibit referred to herein shall be amended, as mutually agreed to by the Parties, to comply with changes or alterations made necessary by a valid applicable order of any governmental regulatory authority, or any court, having jurisdiction hereof.

21.5    Governing Law
The validity, interpretation and performance of this Agreement and each of its provisions shall be governed by the applicable laws of the State of Michigan, exclusive of its conflict of laws principles.

21.6    Headings Not To Affect Meaning

The descriptive headings of the various Articles and Sections of this Agreement have been inserted for convenience of reference only and shall in no way modify or restrict any of the terms and provisions hereof.

21.7    Waivers

Any waiver at any time by a Party of its rights with respect to a default under this Agreement, or with respect to any other matters arising in connection with this Agreement, shall not be deemed a waiver or continuing waiver with respect to any subsequent default or other matter.

21.8    Termination of Predecessor Interconnection Agreement

On the Effective Date, the June 18, 2013 Amendment and Restatement of the Generator Interconnection Agreement between Transmission Provider, Transmission Owner and Consumers shall terminate and be replaced by this Agreement with regard to the Units covered by this Agreement, except insofar as necessary to resolve billing and related matters arising from service rendered and other events occurring before the Effective Date.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their duly authorized officers.

MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC, a Michigan limited liability company
By: ITC Holdings Corp., its manager

By:    /s/ Linda H. Blair                        

Title:    Executive Vice President & Chief Business Officer        

CONSUMERS ENERGY COMPANY

By:        /s/ David B. Kehoe                    

Title:    Director of Staff - Energy Resources Business Services    

MIDCONTINENT INDEPENDENT SYSTEM OPERATOR, INC.

By:    /s/ Jennifer Curran                        

Title:    Vice President, System Planning & Seams Coordination    

EXHIBIT A - CONSUMERS GENERATION RESOURCES

	
												
	 
	 
	Summer
	Winter
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Nameplate
	Net
	Net
	 
	 
	 
	 
	AGC
	Black
	 
	 

	 
	Rated
	Demonstrated
	Demonstrated
	 
	 
	 
	AGC
	Ramp
	Start
	Synch
	 

	Generating Unit
	MVA (1)
	MW Capability
	MW Capability
	Kilovolts
	RPM
	Cooling
	Capable
	MW/Min
	Capable
	Breaker(s)
	Comments

	Campbell 1
	          312.0 
	                 260.0 
	                  260.0 
	       16.0 
	      3,600 
	Hydrogen
	Yes
	3
	No
	199
	 

	Campbell 2
	          492.0 
	                 355.0 
	                  360.0 
	       20.0 
	      3,600 
	Water/Hydrogen
	Yes
	3
	No
	299
	 

	Campbell A
	           21.9 
	                  13.0 
	                    17.0 
	       13.8 
	      3,600 
	Air
	No
	0
	No
	C16
	 Returned to Service in February of 2015.

	Cobb 4
	          184.0 
	                 158.0 
	                  160.0 
	       18.0 
	      3,600 
	Hydrogen
	Yes
	1
	No
	499
	 Tentatively retiring April 2016

	Cobb 5
	          184.0 
	                 158.0 
	                  160.0 
	       18.0 
	      3,600 
	Hydrogen
	Yes
	1
	No
	599
	 Tentatively retiring April 2016

	Gaylord 1
	           18.8 
	                  14.0 
	                    17.0 
	       13.8 
	      3,600 
	Air
	No
	0
	No
	116
	 Mothballed until February 2016.

	Gaylord 2
	           18.8 
	                  14.0 
	                    17.0 
	       13.8 
	      3,600 
	Air
	No
	0
	No
	216
	 Mothballed until February 2016.

	Gaylord 3
	           18.8 
	                  14.0 
	                    17.0 
	       13.8 
	      3,600 
	Air
	No
	0
	No
	316
	 Mothballed until February 2016.

	Karn 1
	          336.0 
	                 255.0 
	                  255.0 
	       16.0 
	      3,600 
	Hydrogen
	Yes
	3
	No
	199
	 

	Karn 2 
	          320.0 
	                 260.0 
	                  260.0 
	       16.0 
	      3,600 
	Hydrogen
	Yes
	3
	No
	299
	 

	Karn 3
	          814.7 
	                 638.0 
	                  638.0 
	       26.0 
	      3,600 
	Water/Hydrogen
	Yes
	6
	No
	28R8/28H9
	 AGC Ramp Rate: 6 is avg. 9 Mw/min 60 thr. 500 Mw, 3 Mw/min 500 thr. 580 Mw

	Karn 4
	          835.0 
	                 638.0 
	                  638.0 
	       26.0 
	      3,600 
	Water/Hydrogen
	Yes
	6
	No
	32F7/32H9
	 AGC Ramp Rate: 6 is avg. 9 Mw/min 70 thr. 500 Mw, 3 Mw/min 500 thr. 580 Mw

	Straits 1
	           25.0 
	                    5.0 
	                    10.0 
	       13.8 
	      3,600 
	Air
	No
	0
	No
	S16
	 Mothballed until February 2016.

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Thetford 2
	           39.5 
	                  29.0 
	                    37.0 
	       13.8 
	      3,600 
	Air
	No
	0
	No
	216
	 Blackstart Resource until September 2015.

	Thetford 3
	           39.5 
	                  30.0 
	                    37.0 
	       13.8 
	      3,600 
	Air
	No
	0
	Yes
	316
	 Blackstart Resource until May 2015.

	Thetford 4
	           39.5 
	                  30.0 
	                    37.0 
	       13.8 
	      3,600 
	Air
	No
	0
	Yes
	416
	 Blackstart Resource until May 2015.

	Weadock 7
	          202.0 
	                 155.0 
	                  155.0 
	       18.0 
	      3,600 
	Hydrogen
	Yes
	1
	No
	799
	 Tentatively retiring April 2016

	Weadock 8
	          184.0 
	                 155.0 
	                  155.0 
	       18.0 
	      3,600 
	Hydrogen
	Yes
	1
	No
	899
	 Tentatively retiring April 2016

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Whiting 1
	          125.0 
	                 102.0 
	                  102.0 
	       14.4 
	      3,600 
	Hydrogen
	Yes
	1
	No
	199
	 Tentatively retiring April 2016

	Whiting 2
	          125.0 
	                 102.0 
	                  102.0 
	       14.4 
	      3,600 
	Hydrogen
	Yes
	1
	No
	299
	 Tentatively retiring April 2016

	Whiting 3
	          156.3 
	                 122.0 
	                  124.0 
	       15.5 
	      3,600 
	Hydrogen
	Yes
	1
	No
	399
	 Tentatively retiring April 2016

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Alcona Hydro 1
	             4.4 
	                    4.0 
	                     4.0 
	         5.0 
	           90 
	 Air 
	 NA 
	 NA 
	 No 
	 116/166 
	 

	Alcona Hydro 2
	             4.4 
	                    4.0 
	                     4.0 
	         5.0 
	           90 
	 Air 
	 NA 
	 NA 
	 No 
	 216/166 
	 

	Calkins Bridge Hydro 1
	             0.6 
	                    0.4 
	                     0.4 
	         4.8 
	         180 
	 Air 
	 NA 
	 NA 
	 No 
	 116/166 
	 Also known as Allegan Hydro

	Calkins Bridge Hydro 2
	             1.1 
	                    0.9 
	                     0.9 
	         4.8 
	         120 
	 Air 
	 NA 
	 NA 
	 No 
	 216/166 
	 Also known as Allegan Hydro

	Calkins Bridge Hydro 3
	             1.5 
	                    1.2 
	                     1.2 
	         4.8 
	         113 
	 Air 
	 NA 
	 NA 
	 No 
	 316/166 
	 Also known as Allegan Hydro

	Cooke Hydro 1
	             3.3 
	                    1.5 
	                     1.5 
	         2.5 
	         180 
	 Air 
	 NA 
	 NA 
	 No 
	 116/166 
	 

	Cooke Hydro 2
	             3.3 
	                    3.0 
	                     3.0 
	         2.5 
	         180 
	 Air 
	 NA 
	 NA 
	 No 
	 216/166 
	 

	Cooke Hydro 3
	             3.3 
	                    3.0 
	                     3.0 
	         2.5 
	         180 
	 Air 
	 NA 
	 NA 
	 No 
	 316/166 
	 

	Croton Hydro 1
	             3.8 
	                    2.9 
	                     2.9 
	         7.2 
	         225 
	 Air 
	 NA 
	 NA 
	 No
	 116/246 
	 

	Croton Hydro 2
	             3.8 
	                    2.9 
	                     2.9 
	         7.2 
	         225 
	 Air 
	 NA 
	 NA 
	 No
	 216/246 
	 

	Croton Hydro 3
	             1.4 
	                    1.3 
	                     1.3 
	         7.2 
	         150 
	 Air 
	 NA 
	 NA 
	No
	 316/246 
	 

	Croton Hydro 4
	             1.6 
	                    1.3 
	                     1.3 
	         7.2 
	         150 
	 Air 
	 NA 
	 NA 
	 No 
	 416/246 
	 

	Five Channels 1
	             3.3 
	                    3.2 
	                     3.2 
	         2.5 
	         150 
	 Air 
	 NA 
	 NA 
	 No 
	 116/166 
	 

	Five Channels 2
	             3.3 
	                    3.2 
	                     3.2 
	         2.5 
	         150 
	 Air 
	 NA 
	 NA 
	 No 
	 216/166 
	 

	Foote Hydro 1
	             3.3 
	                    3.3 
	                     3.3 
	         5.0 
	           90 
	 Air 
	 NA 
	 NA 
	 No 
	 116/366 
	 

	
												
	Foote Hydro 2
	             3.3 
	                    3.3 
	                     3.3 
	         5.0 
	           90 
	 Air 
	 NA 
	 NA 
	 No 
	 216/366 
	 

	Foote Hydro 3
	             3.3 
	                    3.3 
	                     3.3 
	         5.0 
	           90 
	 Air 
	 NA 
	 NA 
	 No 
	 316/366 
	 

	Hodenpyl Hydro 1
	             8.9 
	                    9.2 
	                     9.2 
	         7.5 
	         120 
	 Air 
	 NA 
	 NA 
	 No 
	 116/266 
	 

	Hodenpyl Hydro 2
	             8.9 
	                    9.2 
	                     9.2 
	         7.5 
	         120 
	 Air 
	 NA 
	 NA 
	No 
	 216/266 
	 

	Loud Hydro 1
	             2.2 
	                    2.2 
	                     2.2 
	         2.5 
	         120 
	 Air 
	 NA 
	 NA 
	 No 
	 116/266 
	 

	Loud Hydro 2
	             2.2 
	                    2.2 
	                     2.2 
	         2.5 
	         120 
	 Air 
	 NA 
	 NA 
	 No 
	 216/266 
	 

	Mio Hydro 1
	             2.7 
	                    2.2 
	                     2.2 
	         2.5 
	           80 
	 Air 
	 NA 
	 NA 
	 No 
	 116/166 
	 

	Mio Hydro 2
	             2.7 
	                    2.2 
	                     2.2 
	         2.5 
	           80 
	 Air 
	 NA 
	 NA 
	No 
	 216/166 
	 

	Rogers Hydro 1
	             1.9 
	                    1.5 
	                     1.5 
	         7.5 
	         150 
	 Air 
	 NA 
	 NA 
	 No 
	 116/166 
	 

	Rogers Hydro 2
	             1.9 
	                    1.5 
	                     1.5 
	         7.5 
	         150 
	 Air 
	 NA 
	 NA 
	 No 
	 216/166 
	 

	Rogers Hydro 3
	             1.9 
	                    1.5 
	                     1.5 
	         7.5 
	         150 
	 Air 
	 NA 
	 NA 
	 No 
	 316/166 
	 

	Rogers Hydro 4
	             1.9 
	                    1.5 
	                     1.5 
	         7.5 
	         150 
	 Air 
	 NA 
	 NA 
	 No
	 416/166 
	 

	Tippy Hydro 1
	             7.1 
	                    7.0 
	                     7.0 
	         7.5 
	         109 
	 Air 
	 NA 
	 NA 
	 No 
	 116/266/126 
	 

	Tippy Hydro 2
	             7.1 
	                    7.0 
	                     7.0 
	         7.5 
	         109 
	 Air 
	 NA 
	 NA 
	 No 
	 216/266/126 
	 

	Tippy Hydro 3
	             7.1 
	                    7.0 
	                     7.0 
	         7.5 
	         109 
	 Air 
	 NA 
	 NA 
	 No 
	 316/266/126 
	 

	Webber Hydro 1
	             3.3 
	                    2.3 
	                     2.3 
	         7.2 
	         164 
	 Air 
	 NA 
	 NA 
	 No
	 116/166 
	 

	Webber Hydro 2
	             1.3 
	                    1.0 
	                     1.0 
	         2.5 
	         200 
	 Air 
	 NA 
	 NA 
	 No 
	 216 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Notes:
(1) Rated MVA represents generator machine capability limits.  Turbine or main transformer limits may be more restrictive.
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 

EXHIBIT B - INTERCONNECTION ASSETS

General

The Parties agree that certain assets located at each of the electrical Substations at which Consumers’ Generation Resources are connected to the Transmission System are an integral part of the assets required by the Parties to provide services under their respective charters and that the physical partition would be impossible, impractical and wholly inconsistent with the purposes for which this Agreement is made.  Said assets are deemed to be Jointly Owned Assets.  In general, said assets include, but in some of the electrical Substations shall not be limited to, the following:

		
	Foundations
	All foundations not identified as belonging to a specific piece of assets in the Plant Accounting Records.

		
	Structures
	All steel support structures.

		
	Station wiring
	All buswork, control cables, batteries, battery chargers and ground grids.

		
	Fencing
	All chain-link fencing surrounding or used within the specific electrical Substation.

		
	Control house
	Any building located within the Substation used to house relaying, controls or telemetry equipment beneficial to and used by both Parties.

		
	Stone
	All stone used in the Substation yards, driveways and drains.

At each of the substations listed in this Exhibit B, an allocated percentage of the Jointly Owned Assets is determined for each Party hereto, in accordance with the provisions of this Agreement

For each of the electrical Substations at which Consumers’ Generation Resources are connected to the Transmission System, the specific assets allocated to and owned by Consumers are identified below as Consumers’ Interconnection Assets.  In certain 345 kV Substations, specific breakers and associated assets that have been designated for operation by Consumers are also specifically identified as Transmission Owner’s Interconnection Assets.

Some of the electrical Substations containing Interconnection Assets also contain Distribution System assets owned by Consumers.  Unless said Distribution System assets are directly involved in the connection of Consumers’ Generation Resources to the Transmission System, they are not described in the description of assets that follow.

The balance of the assets in each electrical Substation are allocated to and owned by the Transmission Owner and considered a part of the Transmission System.

Wiring Diagrams (WDs) will be updated continuously in each Party’s Drawing Management System (DMS) which is shared between the Parties and approved in writing by the Local Distribution Company to show changes in ownership.  For current ownership (reflecting ownership changes since July 24, 2008), see the WDs in the DMS.

Exhibit B - Table 1
Jointly Owned Asset Ownership by Percent of Major Equipment
Addendum 5 - Final 09/08/15

Substations
Jointly Owned Assets
Percentage Split by Major Equipment Count
(Substations with 100% ownership by Major Equipment Count Not Included)

	
						
	Substation Name
	Distribution
	Transmission
	Generation Owned by Local Distribution Company
	Third-Party Assets
	Last Revision Date

	Campbell 138 kV 1
	0.00
	64.28
	35.24
	0.48
	08/16/12

	Cobb Plant
	47.22
	25.00
	27.78
	 
	04/29/02

	Gaylord
	44.44
	44.44
	11.12
	 
	01/01/10

	Karn Plant
	0.00
	63.64
	36.36
	 
	01/01/10

	Morrow 
	63.33
	30.00
	6.67
	 
	08/16/12

	Thetford
	0.00
	92.00
	8.00
	 
	04/29/02

	Weadock
	35.14
	24.32
	40.54
	 
	01/01/10

	Whiting
	28.57
	28.57
	42.86
	 
	08/16/12

--________________________
1 At 120 kV and above, third-party related assets will be included as part of the Transmission assets for purposes of making this calculation.  Also, the third party may share in the financial responsibility associated with O&M activities.

Changes, relative to previous revisions (addendums), are shown in bold type.
Major equipment is defined in Section 5.4 of the GIA.Generator Connections located at Substations in the Transmission System

Campbell 1&2 Plant 

The Campbell 1&2 Plant consists of three generating Units, known as Unit 1 (consisting of generators 1A and 1B), Unit 2 and Unit A.  (The Campbell 3 Plant is located at the same site, but has separate interconnection facilities and is covered by a separate generator interconnection agreement.)

The Connection Point for Units 1, 2 and A are in the Campbell 138 kV Substation (see Wiring Diagram #93, Sheet 31 attached).  

The Points of Receipt for all the Units in the Campbell 1&2 Plant are deemed to be the respective Connection Points.

Consumers’ Interconnection Assets

Consumers’ owns the following assets at the Campbell 138 kV Substation (Wiring Diagram #93, Sheet 31):

Transformer Bank    No. A (located outside of substation; not included in JOA calc)
		
	Circuit Breakers
	Nos. 199, 299, 799, 899*, 999 and 16A (16A is rated < 23kV and not considered major equipment per GIA definition).  

		
	Switches
	Nos. 99A, 195, 196, 295, 296, 709, 793, 795, 796, 809*, 893*, 895*, 896*, 909, 993, 995 and 996

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the switches identified above to the Circuit Breakers identified above and to the main or transfer buswork

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

Foundations        All foundations supporting the Circuit Breakers identified above

* Jointly Owned asset with Michigan Public Power Agency (4.8%) and Wolverine Power Supply Cooperative (1.8%) 

Transmission Owner Interconnection Assets

Transmission Owner owns the following assets at the Campbell 138 kV Substation (Wiring Diagram #93, Sheet 31):

Transformer Bank    No. 5
Circuit Breakers    Nos. 148, 188, 288, 388, 488, 500, 566 and 588
		
	Switches
	Nos. 108, 144, 145, 146, 184, 185, 186, 208, 284, 285, 286, 308, 384, 385, 386, 408, 484, 485, 486, 505, 506, 508, 509, 545, 546, 564, 584, 585, 586,  1020 and 1121 

		
	Circuit Connections
	All wire, cable or bus work electrically connecting the switches identified above to the Circuit Breakers identified above and to the main or transfer bus work

		
	Relay and Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Circuit Breakers identified above

Jointly Owned Assets - Percentage Split by Major Equipment Count

Campbell 138 kV Substation - See Exhibit B - Table 1

CEII MATERIAL

Cobb Generating Plant Complex

The Cobb Generating Plant Complex consists of five generating Units, known as Units 1 through 5, respectively.

The Connection Points for Units 1 through 5 are in the BC Cobb Plant Substation (see Wiring Diagram #240, Sheet 31 attached).

The Points of Receipt for all the Units in the Cobb Generating Plant Complex are deemed to be the respective Connection Points.

Consumers’ Interconnection Assets

Consumers owns the following assets at the BC Cobb Plant Substation (Wiring Diagram #240, Sheet 31):

Transformer Banks    Nos. 1, 2, 3, 4, 5, 7 and 8

Capacitor Banks     Nos. 1 and 2
		
	Circuit Breakers
	Nos. 100, 188, 199, 288, 299, 399, 499, 599, 766, 799, 866, 899, 1177, 1188, 1288, 1388, 1488 and 1688

		
	Switches
	Nos. 102, 104, 152, 156, 184, 185, 186, 193, 195, 196, 200, 252, 256, 284, 285, 286, 293, 295, 296, 393, 395, 396, 493, 495, 496, 593, 595,  and 596, 709, 762, 764, 765, 793, 795, 796, 809, 862, 864, 865, 893, 895, 896, 1171, 1173, 1175, 1182, 1184, 1185, 1282, 1284, 1285, 1323, 1382, 1384, 1385, 1482, 1484, 1485, 1588, 1682, 1684, 1685, 1788, 1888, 2333, 7732-1, 7736-1, 8826-2,  8832-2 and 8836-2  

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the switches identified above to the Circuit Breakers identified above and to the main buswork.

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Transformers and Circuit Breakers identified above

		
	Auxiliary Power
	All 2400 Volt station power assets shown in the attached Wiring Diagram #240

Transmission Owner Interconnection Assets

Transmission Owner owns the following assets at the BC Cobb Plant Substation (Wiring Diagram #240, Sheet 31):

		
	Circuit Breakers
	Nos. 148, 377, 488, 500, 588, 688, 788, 888 and 988 

		
	Switches
	Nos. 144, 145, 146, 307, 373, 375, 376, 408, 484, 485, 486, 505, 506, 508, 584, 585, 586, 608, 684, 685, 686, 708, 784, 785, 786, 808, 884, 885, 886, 908, 984, 985, 986, 1020, 1121, 2030 and 2131

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the switches identified above to the Circuit Breakers identified above and to the main buswork.

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Circuit Breakers identified above

Jointly Owned Assets - Percentage Split by Major Equipment Count

Cobb Plant Substation -See Exhibit B - Table 1

CEII MATERIAL

Gaylord Generating Plant Complex

The Gaylord Generating Plant Complex consists of five combustion turbine generating Units, known as Units 1 through 5, respectively.

The Connection Points for Units 1 through 5 are in the Gaylord Generating Substation (see Wiring Diagram #495, Sheet 31 attached).

The Points of Receipt for all the Units in the Gaylord Generating Plant Complex are deemed to be the respective Connection Points.

Consumers’ Interconnection Assets

Consumers owns the following assets at the Gaylord Generating Substation (Wiring Diagram #495, Sheet 31):

Transformer Banks    Nos. 1, 2* and 3* (*located outside of substation; not included in JOA calc)
		
	Circuit Breakers
	Nos. A16*, 116*, 146, 166, 199, 216*, 316*, 416* and 1288 (*located outside of substation; not included in JOA calc) 

		
	Switches
	Nos. 3,142, 144, 145, 162, 164, 165, 191, 193, 195, 299, 399, 1282 and 1284

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the switches identified above to the Circuit Breakers identified above

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Transformers and Circuit Breakers identified above

		
	Auxiliary Power
	All station power assets shown in the attached Wiring Diagram #495, Sheet 31

Transmission Owner Interconnection Assets

Transmission Owner owns the following assets at the Gaylord Generating Substation (Wiring Diagram #495, Sheet 31):

		
	Capacitor Bank
	No. 3

		
	Circuit Breakers
	Nos. 356, 377 and 477

		
	Switches
	Nos. 352, 371, 373, 382, 384, 471and 473 

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the switches identified above to the Circuit Breakers identified above

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Circuit Breakers identified above

Jointly Owned Assets - Percentage Split by Major Equipment Count

Gaylord Generating Substation - See Exhibit B - Table 1

CEII MATERIAL

Karn Generating Plant Complex

The Karn Generating Plant Complex consists of four generating Units, known as Units 1 (consisting of generators 1A and 1B), Unit 2 (consisting of generators 2A and 2B, Unit 3 and Unit 4.

The Connection Point for Units 1 and 2 are in the DE Karn Plant 138 kV Substation (see Wiring Diagram #695, Sheet 31 attached).  The Connection Point for Units 3 and 4 are in the Hampton 345 kV Substation (see Wiring Diagram #1327, Sheet 31 attached).

The Points of Receipt for all the Units in the DE Karn Generating Plant Complex are deemed to be the respective Connection Points.

Consumers’ Interconnection Assets

Consumers owns the following assets at the DE Karn 138 kV Substation (Wiring Diagram #695, Sheet 31):

		
	Transformer Banks
	Nos. 1 and 2 (located outside the substation; not included in JOA calc)

Circuit Breakers    Nos. 199, 299, 799 and 899
		
	Switches
	Nos. 136A, 136B, 195, 196, 236A, 236B, 295, 296, 793, 795, 796, 893, 895, and 896

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the switches identified above to the Circuit Breakers identified above and to the main or transfer buswork

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

Foundations        All foundations supporting the Circuit Breakers identified above
		
	Auxiliary Power
	All 480 Volt and 4160 Volt station power assets shown in the attached Wiring Diagram #695, Sheet 31

Transmission Owner’s Interconnection Assets

Transmission Owner owns the following assets at the DE Karn 138 kV Substation (Wiring Diagram #695, Sheet 31):

Circuit Breakers    Nos. 148, 188, 388, 488, 500, 588 and 988
		
	Switches
	Nos. 108, 144, 145, 146, 184, 185, 186, 308, 384, 385, 386, 408, 484, 485, 486, 505, 506, 508, 584, 585, 586, 709, 809, 908, 984, 985, 986, 2030 and 2131  

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the switches identified above to the Circuit Breakers identified above and to adjacent buswork

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

Foundations        All foundations supporting the Circuit Breakers identified above

Jointly Owned Assets - Percentage Split by Major Equipment Count
Karn Plant Substation - See Exhibit B - Table 1

CEII MATERIAL

CEII MATERIAL

Morrow Generating Plant Complex

The Morrow Generating Plant Complex consists of two combustion turbine generating Units, known as Units A and B.

The Connection Points for both Units A and B are in the Morrow Substation (see Wiring Diagram #190, Sheet 31, attached).

The Points of Receipt for the Units in the Morrow Generating Plant Complex are deemed to be the Connection Points.

Consumers’ Interconnection Assets

Consumers’ owns the following assets at the Morrow Substation (Wiring Diagram #190, Sheet 31):

		
	Transformer Banks
	No. 1, 2, 4 and 5 

		
	Circuit Breakers
	Nos. 100, 156, 166, 199, 256, 266, 299, 566, 499, 16A,16B, 599, 1077,  1188, 1388, 1488, 1588, 1688 and 1788

		
	Switches
	Nos. 102, 104, 109, 162, 164, 165, 191, 193, 195, 196, 209, 252, 262, 264, 265, 291, 293, 295, 296, 300, 509, 562, 564, 565, 591, 593, 595, 596, 1071, 1073, 1075, 1182, 1184, 1185, 1323, 1382, 1384, 1385, 1482, 1484, 1485, 1582, 1584, 1585, 1682, 1684, 1685, 1782, 1784, 1785 and 2333 

Capacitors        Nos. 1 and 2
		
	Circuit Connections
	All wire, cable or buswork electrically connecting the Transformers, Circuit Breakers and Switches identified above

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Transformers and Circuit Breakers identified above

		
	Auxiliary Power
	All 480 Volt station power assets shown in the attached Wiring Diagram #190, Sheet 31

Transmission Owner Interconnection Assets

Transmission Owner owns the following assets at the Morrow Substation (Wiring Diagram #190, Sheet 31):

Circuit Breakers    Nos. 177, 288, 377, 388, 500, 588, 677, 888 and 988
		
	Switches
	Nos. 107, 171, 173, 175, 176, 208, 282, 284, 285, 286, 307, 308, 371, 373, 375, 376, 382, 384, 385, 386, 501, 502, 503, 504, 505, 506, 508, 582, 584, 585, 586, 607, 671, 673, 675, 676, 882, 884, 885, 886, 982, 984, 985 and 986 

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the Circuit Breakers and Switches identified above

		
	Relay and Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Circuit Breakers identified above

Third Party Owned Assets

None

Jointly Owned Assets - Percentage Split by Major Equipment Count

Morrow Substation - See Exhibit B - Table 1

CEII MATERIAL

Thetford Generating Plant Complex

The Thetford Generating Plant Complex consists of nine combustion turbine generating Units, known as Units 1 through 9, respectively.

The Connection Points for Units 1 through 9 are in the Thetford Substation (see Wiring Diagram #1000, Sheet 31 attached).

The Points of Receipt for all the Thetford Units are deemed to be the respective Connection Points.

Consumers’ Interconnection Assets

Consumers owns the following assets at the Thetford Substation (Wiring Diagram #1000, Sheet 31):

		
	Transformer Banks
	Nos. 5, 6-1, 6-2 and 7

Circuit Breakers    Nos. 13B7, 13W8, 116, 216, 316, 416, 516, 616, 716, 816 and 916
Switches        Nos. 13B1, 13B3, 13M5, 13W2, 13W4, 591, 691-1, 691-2 and 791
		
	Circuit Connections
	All wire, cable or buswork electrically connecting the Transformer Banks, Circuit Breakers and Switches identified above

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Transformers and Circuit Breakers identified above

Transmission Owner Interconnection Assets

Transmission Owner owns the following assets at the Thetford Substation (Wiring Diagram #1000, Sheet #31):

		
	Transformer Banks
	Nos. 3 and 4

		
	Circuit Breakers
	Nos. 6B7, 6M9, 6W8, 7B7, 7M9, 7W8, 9B7, 9M9, 9W8, 11B7, 11M9, 11W8, 27F7, 27H9, 27R8, 31F7, 31H9, 31R8, 33F7, 33H9 and 33R8

		
	Switches
	Nos. 6B1, 6B3, 6M5, 6M6, 6W2, 6W4, 7B1, 7B3, 7M5, 7M6, 7W2, 7W4, 9B1, 9B3, 9M5, 9M6, 9W2, 9W4, 11B1, 11B3, 11M5, 11M6, 11W2, 399, 499, 11W4, 27F1, 27F3, 27H5, 27H6, 27R2, 27R4, 31F1, 31F3, 31H5, 31H6, 31R2, 31R4, 33F1, 33F3, 33H5, 33H6, 33R2, 33R4 and 35R2

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the Transformer Banks, Circuit Breakers and Switches identified above

		
	Relay and Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Transformers and Circuit Breakers identified above

Jointly Owned Assets - Percentage Split by Major Equipment Count

Thetford Substation - See Exhibit B - Table 1

CEII MATERIAL

Weadock Generating Plant Complex

The Weadock Generating Plant Complex consists of three generating Units, known as Units 7, 8 and A.

The Connection Points for Units 7, 8 and A1 are in the John C Weadock Substation (see Wiring Diagram #195, Sheet 31 attached).  These Units are currently in service.  In addition, there are six other units, known as Units 1 through 6, which have been retired from service, but are still in place.  Those assets are also described below, should the Units be restored to service in the future.

The Points of Receipt for all the Units currently in service at the Weadock Generating Plant Complex are deemed to be the respective Connection Points.

Consumers’ Interconnection Assets (for Units In Service)

Consumers owns the following assets at the John C Weadock Substation (Wiring Diagram #195, Sheets 2 and 31):

		
	Transformer Banks
	Nos. 1, 2, 7, 8, 9 and 10 

		
	Circuit Breakers
	Nos. 66A, 100, 136, 166, 199, 236, 266, 299, 300, 736C, 799, 899, 966, 999, 1066, 1088, 1099, 1188, 1288 and 1388 

		
	Switches
	Nos. 62A, 64A, 102, 104, 105, 106, 132, 134, 135, 152, 156, 162, 164, 165, 195, 196, 200, 232, 234, 235, 252, 256, 262, 264, 265, 295, 296, 302, 304, 306, 400, 732C, 734C, 735C, 736A, 736B, 795, 796, 836A, 836B, 895, 896, 962, 964, 965, 991, 993, 995, 996, 1062, 1064, 1065, 1082, 1084, 1085, 1091, 1093, 1095, 1096, 1182, 1184, 1185, 1282, 1284, 1285, 1382, 1384 and 1385

Capacitors        1 and 2  
		
	Circuit Connections
	All wire, cable or buswork electrically connecting the Switches identified above to the Circuit Breakers identified above and to the main buswork.

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Transformer Banks and Circuit Breakers identified above

		
	Auxiliary Power
	All 480 Volt and 4160 Volt station power assets shown in the attached Wiring Diagram #195, Sheet 31

Consumers’ Interconnection Assets (for Units Retired in Place)

Consumers owns the following assets at the John C Weadock Substation (Wiring Diagram #195, Sheet 31):

Transformer Banks    Nos. 5 and 6
Circuit Breakers    Nos. 99A, 116, 216, 316, 336, 416 and 436
		
	Switches
	Nos. 93A, 112, 114, 212, 214, 312, 314, 332, 412, 414, 432, 516, 536 and 616

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the Switches identified above to the Circuit Breakers identified above and to the main buswork.

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Transformer Banks and Circuit Breakers identified above

Transmission Owner Interconnection Assets

Transmission Owner owns the following assets at the John C Weadock Substation (Wiring Diagram #195, Sheet 31):

Circuit Breakers    Nos. 148, 188, 288, 388, 488, 500, 588, 688 and 788
		
	Switches
	Nos. 108, 142, 144, 145, 146, 182, 184, 185, 186, 208, 282, 284, 285, 286, 308, 382, 284, 385, 386, 408, 482, 484, 485, 486, 505, 506, 508, 582, 584, 585, 586, 608, 682, 684, 685, 686, 708, 782, 784, 785, 786, 900, 1020,1121, 2030, 2131, 3040, 3141, 4050 and 4151

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the Switches identified above to the Circuit Breakers identified above and to the main buswork

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Circuit Breakers identified above

  

Jointly Owned Assets - Percentage Split by Major Equipment Count

John C Weadock Substation - See Exhibit B - Table 1

CEII MATERIAL

Whiting Generating Plant Complex

The Whiting Generating Plant Complex consists of four generating Units, known as Units 1, 2, 3 and A.

The Connection Points for Units 1, 2, 3 and A are in the Whiting Substation (see Wiring Diagram #400, Sheet 31attached).  Units 1, 2 and 3 are connected to the 138 kV buswork and Unit A is connected to the 46 kV buswork

The Points of Receipt for all the Units in the Whiting Generating Plant Complex are deemed to be the respective Connection Points.

Consumers’ Interconnection Assets

Consumers owns the following assets at the Whiting Substation (Wiring Diagram #400, Sheet 31):

		
	Transformer Banks
	Nos. 1, 2, 3, 5, 7 and A (TB # A located outside of substation; not included in JOA calc)

		
	Circuit Breakers
	Nos. 16A (located outside switchyard; not included in JOA calc), 46A, 199, 299, 399, 599, 766, 799, 1188 and 1288

		
	Switches
	Nos. 42A, 44A, 45A, 99A, 105, 156, 191, 193, 195, 196, 291, 293, 295, 296, 391, 393, 395, 396, 591, 593, 79T1, 762, 764, 765, 795, 796, 1182, 1184, 1185, 1282, 1284, 1285 

		
	Capacitor Bank
	No 1

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the Transformer Banks, Circuit Breakers and Switches identified above to each other, as appropriate, to the main buswork and to the Auxiliary Power assets

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	Foundations
	All foundations supporting the Transformer Banks and Circuit Breakers identified above

		
	Auxiliary Power
	All 480 Volt and 2400 Volt station power assets shown in the attached Wiring Diagram #400, Sheet 31

Transmission Owner Interconnection Assets

Transmission Owner owns the following assets at the Whiting Substation (Wiring Diagram #400, Sheet 31):

Transformer Bank     No. 8
Circuit Breakers    Nos. 500, 688, 788,899 and 988
		
	Switches
	Nos. 501, 502, 503, 504, 505, 506, 608, 682, 684, 685, 686, 785, 786, 866, 895, 896, 908, 982, 984, 985 and 986

		
	Circuit Connections
	All wire, cable or buswork electrically connecting the Transformer Banks, Circuit Breakers and Switches identified above to each other, as appropriate, to the main buswork

		
	Relay & Controls
	All relays and controls associated with the Circuit Breakers identified above

		
	 Foundations
	All foundations supporting the Transformer Bank and Circuit Breakers identified above

Jointly Owned Assets - Percentage Split by Major Equipment Count

Whiting Substation - See Exhibit B - Table 1

CEII MATERIAL

EXHIBIT C

Generator Connections located in Consumers’ Distribution System

The following Units are connected indirectly to the Transmission System and do not have specific connection data listed herein.

Alcona Hydro Generating Plant, Units 1 and 2
Calkins Bridge “Allegan” Hydro Generating Plant, Units 1, 2 and 3
Cooke Hydro Generating Plant, Units 1. 2 and 3
Croton Hydro Generating Plant, Units 1, 2, 3 and 4

Five Channels Generating Plant, Units 1 and 2
Foote Hydro Generating Plant, Units 1, 2 and 3
Hodenpyl Hydro Generating Plant, Units 1 and 2
Loud Hydro Generating Plant, Units 1 and 2
Mio Hydro Generating Plant, Units 1 and 2
Rogers Hydro Generating Plant, Units 1, 2, 3 and 4
Straits Combustion Turbine Generating Unit 1
Tippy Hydro Generating Plant, Units 1, 2 and 3
Webber Hydro Generating Plant, Units 1 and 2

Consumers Energy Generator Connections Covered under Other Interconnection Agreements

The following Units are covered under their own GIAs and do not have specific connection data listed herein.

Campbell Generating Plant, Unit 3.

Hardy Hydro Generating Plant, Units 1, 2 and 3.

Zeeland Power Plant

Ludington Units 1,2,3,4,5 and 6.

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