Document:

ex_217516.htm

Exhibit 4.1

 

FORM OF COMMON STOCK PURCHASE WARRANT

 

 ATOSSA THERAPEUTICS, INC.

 

Warrant Shares: [_______]                                   Initial Exercise Date: [______], 2020

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on [_____], 20241 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Atossa Therapeutics, Inc., a company incorporated under the laws of the State of Delaware (the “Company”), up to [___] shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). This Warrant shall initially be issued and maintained in the form of a security held in book-entry form and the Depository Trust Company or its nominee (“DTC”) shall initially be the sole registered holder of this Warrant, subject to a Holder’s right to elect to receive a Warrant in certificated form pursuant to the terms of the Warrant Agency Agreement, in which case this sentence shall not apply.

 

Section 1.     Definitions. In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1:

 

“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 under the Securities Act.

 

“Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

“Board of Directors” means the board of directors of the Company.

 

“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee”  or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by customers on such day.

 

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

 

“Common Stock” means the common stock of the Company, par value $0.18 per share, and 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, right, option, warrant 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.

 

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

 

“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.

 

“Registration Statement” means the Company’s registration statement on Form S-1, as amended (File No. 333-250820).

 

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

 

“Trading Day” means a day on which the Common Stock is traded on a Trading Market.

 

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

 

“Transfer Agent” means VStock Transfer, LLC, the current transfer agent of the Company, with a mailing address of18 Lafayette Place, Woodmere, New York 11598 and a facsimile number of (646) 536-3179), and any successor transfer agent of the Company.

 

“Underwriting Agreement” means the underwriting agreement, dated as of December 8, 2020 among the Company and Maxim Group LLC as representative of the underwriters named therein, as amended, modified or supplemented from time to time in accordance with its terms.

 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

“Warrant Agency Agreement” means that certain warrant agency agreement, dated on or about the Initial Exercise Date, between the Company and the Warrant Agent.

 

“Warrant Agent” means the Transfer Agent and any successor warrant agent of the Company.

 

“Warrants” means this Warrant and other Common Stock purchase warrants issued by the Company pursuant to the Registration Statement.

 

Section 2.     Exercise.

 

a)     Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy or PDF copy submitted by email (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

Notwithstanding the foregoing in this Section 2(a), a holder whose interest in this Warrant is a beneficial interest in certificate(s) representing this Warrant held in book-entry form through DTC (or another established clearing corporation performing similar functions), shall effect exercises made pursuant to this Section 2(a) by delivering to DTC (or such other clearing corporation, as applicable) the appropriate instruction form for exercise, complying with the procedures to effect exercise that are required by DTC (or such other clearing corporation, as applicable), subject to a Holder’s right to elect to receive a Definitive Warrant pursuant to the terms of the Warrant Agency Agreement, in which case this sentence shall not apply.

 

b)     Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $1.00, subject to adjustment hereunder (the “Exercise Price”).

 

c)     Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing ((A-B)(X)) by (A), where:

 

(A) = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

(B) = the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company agrees not to take any position contrary to this Section 2(c).

 

Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

 

d)     Mechanics of Exercise.

 

	 	
			i.

				
			Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

			

 

ii.     Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.     Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.     Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

v.     No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, 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 Exercise Price or round up to the next whole share.

 

vi.     Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

 

vii.     Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

e)     Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% (or, upon election by a Holder prior to the issuance of any Warrants, 9.99%) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

 

 

 

Section 3.     Certain Adjustments.

 

a)     Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(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.

 

b)     Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

c)     Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, merger, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "Distribution"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

d)     Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.

 

e)     Calculations. All calculations under this Section 3 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 3, 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 treasury shares, if any) issued and outstanding.

 

f)     Notice to Holder.

 

i.     Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.     Notice to Allow Exercise 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 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 delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 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. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

g)     Voluntary Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time during the term of this Warrant, subject to the prior written consent of the Holder, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the Company.

 

Section 4.     Transfer of Warrant.

 

a)     Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b)     New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)     Warrant Register. The Warrant Agent (or, in the event a Holder elects to receive a Definitive Certificate (as defined in the Warrant Agency Agreement), the Company) shall register this Warrant, upon records to be maintained by the Warrant Agent (or, in the event a Holder elects to receive a Definitive Certificate, the Company) for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company and the Warrant Agent may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section 5.     Miscellaneous.

 

a)     No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3.

 

b)     Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)     Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

 

d)     Authorized Shares.

 

The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e)     Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or their respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an 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 Warrant 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 law. If either party shall commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

f)     Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g)     Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h)     Notices. Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice of Exercise, shall be in writing and delivered personally, or e-mail, or sent by a nationally recognized overnight courier service, addressed to the Company, at 107 Spring Street, Seattle, WA, 98104, Attention: Kyle Guse, email address: kyle.guse@atossagenetics.com, or such other facsimile number, email address or address as the Company may specify for such purposes by notice to the Holders. 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 e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number, e-mail address or address of such Holder appearing on the books of the Company. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail address 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 time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail address 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. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

 

i)     Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

j)     Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k)     Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)     Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand, and the Holder or the beneficial owner of this Warrant, on the other hand.

 

m)     Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

n)     Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

o)     Warrant Agency Agreement. If this Warrant is held in global form through DTC (or any successor depositary), this Warrant is issued subject to the Warrant Agency Agreement. To the extent any provision of this Warrant conflicts with the express provisions of the Warrant Agency Agreement, the provisions of this Warrant shall govern and be controlling.

 

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

	
			ATOSSA THERAPEUTICS, INC.

			 

			
	
			By:__________________________________________

			     Name:

			     Title:

			

 

 

NOTICE OF EXERCISE

 

To:     ATOSSA THERAPEUTICS, INC.

 

(1)     ()The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

(2)     ()Payment shall take the form of (check applicable box):

 

[ ] in lawful money of the United States; or

 

[ ] [if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3)     ()Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

 

The Warrant Shares shall be delivered to the following DWAC Account Number:

 

_______________________________

_______________________________

_______________________________

 

 

[SIGNATURE OF HOLDER]

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

 

 

 

 

 

 

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
			Name:

				 
	 	
			(Please Print)

			
	
			Address:

				 
	
			 

			Phone Number:

			Email Address:

				
			(Please Print)

			______________________________________

			______________________________________

			
	
			Dated: _______________ __, ______

				 
	
			Holder’s Signature:

				 
	
			Holder’s Address:

				 

 

 

1 year anniversary of the Initial Exercise Date; provided, however, that, if such date is not a Trading Day, insert the immediately following Trading Day.Exhibit 4.1

 

ONE HUNDRED FORTY-THIRD SUPPLEMENTAL
INDENTURE

 

Providing among other things for

 

FIRST MORTGAGE BONDS,

 

$300,000,000 0.35% Series due 2023

 

Dated as of December 14, 2020

 

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

 

CONSUMERS ENERGY COMPANY

 

TO

 

THE BANK OF NEW YORK MELLON,

 

TRUSTEE

 

Counterpart _____ of 80

 

     

     

    

 

THIS ONE HUNDRED FORTY-THIRD
SUPPLEMENTAL INDENTURE, dated as of December 14, 2020 (herein sometimes referred to as “this Supplemental Indenture”),
made and entered into by and between CONSUMERS ENERGY COMPANY, a corporation organized and existing under the laws of the State
of Michigan, with its principal executive office and place of business at One Energy Plaza, in Jackson, Jackson County, Michigan
49201, formerly known as Consumers Power Company (hereinafter sometimes referred to as the “Company”), and THE BANK
OF NEW YORK MELLON (formerly known as The Bank of New York), a New York banking corporation, with its corporate trust offices at
240 Greenwich Street, New York, New York 10286 (hereinafter sometimes referred to as the “Trustee”), as Trustee under
the Indenture dated as of September 1, 1945 between Consumers Power Company, a Maine corporation (hereinafter sometimes referred
to as the “Maine corporation”), and City Bank Farmers Trust Company (Citibank, N.A., successor, hereinafter sometimes
referred to as the “Predecessor Trustee”), securing bonds issued and to be issued as provided therein (hereinafter
sometimes referred to as the “Indenture”),

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    1

     

    

 

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

 

WHEREAS, the Indenture
was executed and delivered for the purpose of securing such bonds as may from time to time be issued under and in accordance with
the terms of the Indenture, the aggregate principal amount of bonds to be secured thereby being limited to $14,000,000,000 at any
one time outstanding (except as provided in Section 2.01 of the Indenture), and the Indenture describes and sets forth the
property conveyed thereby and is filed in the Office of the Secretary of State of the State of Michigan and is of record in the
Office of the Register of Deeds of each county in the State of Michigan in which this Supplemental Indenture is to be recorded;
and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

WHEREAS, the Indenture
provides for the issuance of bonds thereunder in one or more series, and the Company, by appropriate corporate action in conformity
with the terms of the Indenture, has duly determined to create, and does hereby create, a new series of bonds under the Indenture
designated 0.35% Series due 2023, which bonds shall also bear the descriptive title “First Mortgage Bonds” (hereinafter
provided for and hereinafter sometimes referred to as the “2023 Bonds” or the “Bonds”), the bonds of which
series are to be issued as registered bonds without coupons and are to bear interest at the rate per annum specified in the title
thereof and are to mature on June 1, 2023; and

 

    2

     

    

 

WHEREAS, the Company
and Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc., as representatives of the several underwriters named therein
(the “Underwriters”), have entered into an Underwriting Agreement dated December 2, 2020, pursuant to which the
Company agreed to sell and the Underwriters agreed to buy $300,000,000 in aggregate principal amount of 2023 Bonds; and

 

WHEREAS, the registered
bonds without coupons of the 2023 Bonds and the Trustee’s Authentication Certificate thereon are to be substantially in the
following form, to wit:

 

{FORM OF REGISTERED BOND OF THE 2023
BONDS}

 

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

 

CONSUMERS ENERGY COMPANY

FIRST MORTGAGE BOND

0.35% SERIES DUE 2023

 

	CUSIP: 210518 DM5	     $
	ISIN: US210518DM50	 

 

No.:

 

CONSUMERS ENERGY COMPANY,
a Michigan corporation (hereinafter called the “Company”), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of          Dollars ($      ) on June 1, 2023 (the “Stated Maturity”), and to
pay to the registered holder hereof interest on said sum from and including the latest semi-annual interest payment date to which
interest has been paid or duly made available for payment on the bonds of this series preceding the date hereof, unless the date
hereof be an interest payment date to which interest is being paid, in which case from and including the date hereof, or unless
the date hereof is prior to June 1, 2021 in which case from and including December 14, 2020 (or if this bond is dated
between the record date for any interest payment date and such interest payment date, then from and including such interest payment
date, provided, however, that if the Company shall default in payment of the interest due on such interest payment date, then from
and including the next preceding semi-annual interest payment date to which interest has been paid or duly made available for payment
on the bonds of this series, or if such interest payment date is June 1, 2021, from and including December 14, 2020),
in each case to but excluding the next succeeding interest payment date or the date of maturity, as the case may be, at the rate
per annum, until the principal hereof is paid or duly made available for payment, specified in the title of this bond, payable
on June 1 and December 1 in each year. The provisions of this bond are continued below and such continued provisions
shall for all purposes have the same effect as though fully set forth at this place.

 

    3

     

    

 

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

 

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

 

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

 

TRUSTEE’S AUTHENTICATION
CERTIFICATE

 

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

 

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

 

    4

     

    

 

CONSUMERS ENERGY COMPANY

 

FIRST MORTGAGE BOND 0.35% SERIES DUE 2023

 

The interest payable
on any June 1 or December 1 will, subject to certain exceptions provided in the Indenture hereinafter mentioned, be paid
to the person in whose name this bond is registered at 5:00 p.m., New York City time, on the record date, which shall be the May 15
or November 15 (whether or not such May 15 or November 15 shall be a legal holiday or a day on which banking institutions
in the Borough of Manhattan, The City of New York, are authorized to close) preceding the relevant interest payment date, except
that interest payable at the Stated Maturity shall be paid to the person to whom the principal amount is paid. The initial interest
payment date will be June 1, 2021. The principal of and the premium, if any, and interest on this bond shall be payable at
the office or agency of the Company in the Borough of Manhattan, The City of New York, designated for that purpose, in any coin
or currency of the United States of America which at the time of payment is legal tender for public and private debts.

 

This bond is one of the
bonds of a series designated as First Mortgage Bonds, 0.35% Series due 2023 (sometimes herein referred to as the “2023
Bonds” or the “Bonds”) issued under and in accordance with and secured by an indenture dated as of September 1,
1945, given by the Company (or its predecessor, Consumers Power Company, a Maine corporation) to City Bank Farmers Trust Company
(The Bank of New York Mellon, successor) (hereinafter sometimes referred to as the “Trustee”), together with indentures
supplemental thereto, heretofore or hereafter executed, to which indenture and indentures supplemental thereto (hereinafter referred
to collectively as the “Indenture”) reference is hereby made for a description of the property mortgaged and pledged,
the nature and extent of the security and the rights, duties and immunities thereunder of the Trustee and the rights of the holders
of said bonds and of the Trustee and of the Company in respect of such security, and the limitations on such rights. By the terms
of the Indenture, the bonds to be secured thereby are issuable in series which may vary as to date, amount, date of maturity, rate
of interest and in other respects as provided in the Indenture.

 

Any or all of the 2023
Bonds may be redeemed by the Company at its option, in whole or in part, at any time and from time to time prior to maturity. The
redemption price for any such 2023 Bonds being redeemed on any redemption date prior to the Par Call Date (as defined below) shall
be equal to the greater of the following amounts: (i) 100% of the principal amount of such 2023 Bonds being redeemed on the
redemption date or (ii) the sum of the present values of the remaining scheduled payments of principal of and interest on
such 2023 Bonds being redeemed on such redemption date that would be due if such 2023 Bonds matured on the Par Call Date (not including
any portion of any payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis
at the Adjusted Treasury Rate (as defined below), plus 5 basis points, as determined by a Reference Treasury Dealer (as defined
below) appointed by the Company for such purpose, plus, in each case of clauses (i) and (ii), accrued and unpaid interest,
if any, on such 2023 Bonds being redeemed to, but not including, the redemption date. The redemption price for any such 2023 Bonds
being redeemed on any redemption date on or after the Par Call Date will be equal to 100% of the principal amount of such 2023
Bonds being redeemed on the redemption date, plus accrued and unpaid interest, if any, on such 2023 Bonds being redeemed to, but
not including, the redemption date.

 

    5

     

    

 

“Adjusted
Treasury Rate” means, with respect to any applicable redemption date, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue (as defined below), assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price (as defined below) for such redemption date.

 

“Business Day”
means any day, other than a Saturday or Sunday, on which banks generally are open in New York, New York for the conduct of substantially
all of their commercial lending activities and on which interbank wire transfers can be made on the Fedwire system.

 

“Comparable Treasury
Issue” means the U.S. Treasury security selected by a Reference Treasury Dealer appointed by the Company for such purpose
as having a maturity comparable to the remaining term of such 2023 Bonds being redeemed (assuming for this purpose that such 2023
Bonds matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such 2023 Bonds (assuming
for this purpose that such 2023 Bonds matured on the Par Call Date).

 

“Comparable Treasury
Price” means, with respect to any applicable redemption date, (i) if the Company obtains three or more Reference Treasury
Dealer Quotations (as defined below), the average of such Reference Treasury Dealer Quotations for such redemption date, after
excluding the highest and lowest of such Reference Treasury Dealer Quotations, (ii) if the Company obtains two such Reference
Treasury Dealer Quotations, the average of such quotations, or (iii) if only one Reference Treasury Dealer Quotation is received
by the Company, such quotation.

 

“Par Call Date”
means May 1, 2023.

 

“Primary Treasury
Dealer” means a primary U.S. Government securities dealer in the United States.

 

“Reference Treasury
Dealer” means (i) Scotia Capital (USA) Inc. or its affiliates and a Primary Treasury Dealer selected by U.S. Bancorp
Investments, Inc.; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company
shall substitute therefor another Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer(s) selected by
the Company.

 

“Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury Dealer and any applicable redemption date, the average
of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third Business
Day preceding such redemption date.

 

    6

     

    

 

If less than all of the
2023 Bonds are to be redeemed and (i) the 2023 Bonds are in global form, the interests in the 2023 Bonds to be redeemed shall
be selected for redemption by The Depository Trust Company in accordance with The Depository Trust Company’s standard procedures
therefor, or (ii) the 2023 Bonds are in definitive form, the Trustee shall select the 2023 Bonds to be redeemed by lot or
on a pro rata basis. Notice of redemption shall be delivered not less than 10 nor more than 60 days prior to the date fixed for
redemption to the holders of the 2023 Bonds to be redeemed (which, as long as the 2023 Bonds are held in the book-entry only system,
will be The Depository Trust Company (or its nominee) or a successor depositary (or the successor’s nominee)); provided,
however, that the failure to duly deliver such notice, or any defect therein, shall not affect the validity of any proceedings
for the redemption of the 2023 Bonds as to which there shall have been no such failure or defect. On and after the date fixed for
redemption (unless the Company shall default in the payment of the 2023 Bonds or portions thereof to be redeemed at the applicable
redemption price, together with accrued and unpaid interest, if any, thereon to, but not including, such date), interest on the
2023 Bonds or the portions thereof so called for redemption shall cease to accrue.

 

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

 

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

 

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

 

The Company reserves
the right, without any consent, vote or other action by holders of the 2023 Bonds or any other series created after the Sixty-eighth
Supplemental Indenture, to amend the Indenture to reduce the percentage of the principal amount of bonds the holders of which are
required to approve any supplemental indenture (other than any supplemental indenture which is subject to the proviso contained
in the immediately preceding sentence) (a) from not less than seventy-five per centum (including sixty per centum of each
series affected) to not less than a majority in principal amount of the bonds at the time outstanding or (b) in case fewer
than all series are affected, not less than a majority in principal amount of the bonds of all affected series, voting together.

 

    7

     

    

 

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

 

{END OF FORM OF REGISTERED BOND OF
THE 2023 BONDS}

 

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

 

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

 

NOW, THEREFORE, in consideration
of the premises, of the acceptance and purchase by the holders thereof of the bonds issued and to be issued under the Indenture,
as supplemented and amended as above set forth, duly paid by the Trustee to the Company, and of other good and valuable considerations,
the receipt whereof is hereby acknowledged, and for the purpose of securing the due and punctual payment of the principal of and
premium, if any, and interest on all bonds now outstanding under the Indenture and the $300,000,000 principal amount of the 2023
Bonds, and all other bonds which shall be issued under the Indenture, as supplemented and amended from time to time, and for the
purpose of securing the faithful performance and observance of all covenants and conditions therein, and in any indenture supplemental
thereto, set forth, the Company has given, granted, bargained, sold, released, transferred, assigned, hypothecated, pledged, mortgaged,
confirmed, set over, warranted, alienated and conveyed and by these presents does give, grant, bargain, sell, release, transfer,
assign, hypothecate, pledge, mortgage, confirm, set over, warrant, alienate and convey unto The Bank of New York Mellon, as Trustee,
as provided in the Indenture, and its successor or successors in the trust thereby and hereby created and to its or their assigns
forever, all the right, title and interest of the Company in and to all the property, described in Section 12 hereof, together
(subject to the provisions of Article X of the Indenture) with the tolls, rents, revenues, issues, earnings, income, products
and profits thereof, excepting, however, the property, interests and rights specifically excepted from the lien of the Indenture
as set forth in the Indenture;

 

    8

     

    

 

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

 

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

 

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

 

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

 

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

 

    9

     

    

 

SECTION 1.
There is hereby created one series of bonds (the “2023 Bonds” or the “Bonds”) designated as hereinabove
provided, which shall also bear the descriptive title “First Mortgage Bond”, and the form thereof shall be substantially
as hereinbefore set forth. The 2023 Bonds shall be issued in the aggregate principal amount of $300,000,000, shall mature on June 1,
2023 and shall be issued only as registered bonds without coupons in denominations of $2,000 and any integral multiple of $1,000
in excess thereof. The serial numbers of the 2023 Bonds shall be such as may be approved by any officer of the Company, the execution
thereof by any such officer either manually or by facsimile signature to be conclusive evidence of such approval. The 2023 Bonds
shall bear interest at the rate per annum, until the principal thereof is paid or duly made available for payment, specified in
the title thereto, payable semi-annually in arrears on June 1 and December 1 in each year, commencing June 1, 2021.
Interest on the Bonds will be computed on the basis of a 360-day year consisting of twelve 30-day months. The principal of and
the premium, if any, and the interest on said bonds shall be payable in any coin or currency of the United States of America which
at the time of payment is legal tender for public and private debts, at the office or agency of the Company in the City of New
York, designated for that purpose. Additional 2023 Bonds, without limitation as to amount (except as provided in the Indenture),
and without the consent of the holders of the then outstanding 2023 Bonds, but with the same terms as such outstanding 2023 Bonds
(except the issue price and the issue date and, if applicable, the initial interest accrual date and the initial interest payment
date), may be authenticated and delivered in the manner provided in the Indenture, and any such additional 2023 Bonds would constitute
a single series with such outstanding 2023 Bonds.

 

SECTION 2.

 

SECTION 2.01. Form of
Bonds.

 

The
2023 Bonds shall be issued initially in the form of one or more permanent global bonds in definitive, fully registered form
without interest coupons with the global securities legend appearing in the form of 2023 Bond hereinbefore set forth endorsed thereon
(a “Global Bond”), which shall be deposited on behalf of the purchasers of the Bonds represented thereby with the Trustee,
at its corporate trust office, as securities custodian (or with such other securities custodian as the Depository (as defined below)
may direct), and registered in the name of the Depository or a nominee of the Depository, duly executed by the Company and authenticated
by the Trustee as hereinafter provided. The aggregate principal amount of the Global Bonds may from time to time be increased or
decreased by adjustments made on the records of the Trustee and the Depository or its nominee as hereinafter provided. The depository
for the Global Bonds shall be The Depository Trust Company, a New York corporation, or its duly appointed successor (the “Depository”).
This Section 2.01 shall apply only to a Global Bond deposited with or on behalf of the Depository.

 

The Company shall execute
and the Trustee shall, in the case of each of the 2023 Bonds in accordance with this Section 2.01, authenticate and deliver
initially one or more Global Bonds for the 2023 Bonds, which (a) shall be registered in the name of the Depository or the
nominee of the Depository and (b) shall be delivered by the Trustee to the Depository or pursuant to the Depository’s
instructions or held by the Trustee as securities custodian.

 

    10

     

    

 

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

 

Except as provided in
this Section 2.01, Section 2.02 or Section 2.03, owners of beneficial interests in Global Bonds shall not be entitled
to receive physical delivery of certificated Bonds.

 

SECTION 2.02. Transfer
and Exchange.

 

(a)            Transfer
and Exchange of Global Bonds.

 

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

 

(ii)            Notwithstanding
any other provision of this Supplemental Indenture (other than the provisions set forth in Section 2.03), a Global Bond may
not be transferred as a whole or in part except by the Depository to a nominee of the Depository or by a nominee of the Depository
to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a
nominee of such successor Depository.

 

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

 

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

 

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

 

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

 

    11

     

    

 

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

 

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

 

(d)            No
Obligation of Trustee.

 

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

 

(ii)            The
Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed
under this Supplemental Indenture or under applicable law with respect to any transfer of any interest in any Bond (including any
transfers between or among Agent Members or beneficial owners in any Global Bond) other than to require delivery of such certificates
and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of
the Indenture.

 

SECTION 2.03. Certificated
Bonds.

 

(a)            A
Global Bond deposited with the Depository or with the Trustee as securities custodian pursuant to Section 2.01 shall be transferred
to the beneficial owners thereof in the form of certificated Bonds in an aggregate principal amount equal to the principal amount
of such Global Bond, in exchange for such Global Bond, only if such transfer complies with and is permitted by this Section 2.03
and complies with the conditions set forth in Article II of the Indenture.

 

    12

     

    

 

(b)            Any
Global Bond that is transferable to the beneficial owners thereof pursuant to this Section 2.03 shall be surrendered by the
Depository to the Trustee at its corporate trust office to be so transferred, in whole or from time to time in part, without charge,
and the Trustee shall authenticate and deliver, upon such transfer of each portion of such Global Bond, an equal aggregate principal
amount of certificated Bonds of authorized denominations. Any portion of a Global Bond transferred pursuant to this Section 2.03
shall be executed, authenticated and delivered only in denominations of $2,000 principal amount and any integral multiple of $1,000
in excess thereof and registered in such names as the Depository shall direct.

 

(c)            Subject
to the provisions of Section 2.03(b), the registered holder of a Global Bond shall be entitled to grant proxies and otherwise
authorize any person, including Agent Members and persons that may hold interests through Agent Members, to take any action which
such holder is entitled to take under the Indenture or the Bonds.

 

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

 

SECTION 3. Any or
all of the 2023 Bonds may be redeemed by the Company at its option, in whole or in part, at any time and from time to time prior
to maturity. The redemption price for any such 2023 Bonds being redeemed on any redemption date prior to the Par Call Date (as
defined below) shall be equal to the greater of the following amounts: (i) 100% of the principal amount of such 2023 Bonds
being redeemed on the redemption date or (ii) the sum of the present values of the remaining scheduled payments of principal
of and interest on such 2023 Bonds being redeemed on such redemption date that would be due if such 2023 Bonds matured on the Par
Call Date (not including any portion of any payments of interest accrued to the redemption date) discounted to the redemption date
on a semiannual basis at the Adjusted Treasury Rate (as defined below), plus 5 basis points, as determined by a Reference Treasury
Dealer (as defined below) appointed by the Company for such purpose, plus, in each case of clauses (i) and (ii), accrued and
unpaid interest, if any, on such 2023 Bonds being redeemed to, but not including, the redemption date. The redemption price for
any such 2023 Bonds being redeemed on any redemption date on or after the Par Call Date will be equal to 100% of the principal
amount of such 2023 Bonds being redeemed on the redemption date, plus accrued and unpaid interest, if any, on such 2023 Bonds being
redeemed to, but not including, the redemption date.

 

    13

     

    

 

“Adjusted Treasury
Rate” means, with respect to any applicable redemption date, the rate per annum equal to the semiannual equivalent yield
to maturity of the Comparable Treasury Issue (as defined below), assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price (as defined below) for such redemption date.

 

“Comparable Treasury
Issue” means the U.S. Treasury security selected by a Reference Treasury Dealer appointed by the Company for such purpose
as having a maturity comparable to the remaining term of such 2023 Bonds being redeemed (assuming for this purpose that such 2023
Bonds matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such 2023 Bonds (assuming
for this purpose that such 2023 Bonds matured on the Par Call Date).

 

“Comparable Treasury
Price” means, with respect to any applicable redemption date, (i) if the Company obtains three or more Reference Treasury
Dealer Quotations (as defined below), the average of such Reference Treasury Dealer Quotations for such redemption date, after
excluding the highest and lowest of such Reference Treasury Dealer Quotations, (ii) if the Company obtains two such Reference
Treasury Dealer Quotations, the average of such quotations, or (iii) if only one Reference Treasury Dealer Quotation is received
by the Company, such quotation.

 

“Par Call Date”
means May 1, 2023.

 

“Primary Treasury
Dealer” means a primary U.S. Government securities dealer in the United States.

 

“Reference Treasury
Dealer” means (i) Scotia Capital (USA) Inc. or its affiliates and a Primary Treasury Dealer selected by U.S. Bancorp
Investments, Inc.; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company
shall substitute therefor another Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer(s) selected by
the Company.

 

“Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury Dealer and any applicable redemption date, the average
of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third Business
Day preceding such redemption date.

 

In connection with any
redemption of the 2023 Bonds prior to the Par Call Date, the Company shall give the Trustee notice of the redemption price promptly
after the calculation thereof and the Trustee shall not be responsible for such calculation.

 

    14

     

    

 

If less than all of the
2023 Bonds are to be redeemed and (i) the 2023 Bonds are in global form, the interests in the 2023 Bonds to be redeemed shall
be selected for redemption by The Depository Trust Company in accordance with The Depository Trust Company’s standard procedures
therefor, or (ii) the 2023 Bonds are in definitive form, the Trustee shall select the 2023 Bonds to be redeemed by lot or
on a pro rata basis. Notice of redemption shall be delivered not less than 10 nor more than 60 days prior to the date fixed for
redemption to the holders of the 2023 Bonds to be redeemed (which, as long as the 2023 Bonds are held in the book-entry only system,
will be The Depository Trust Company (or its nominee) or a successor depositary (or the successor’s nominee)); provided,
however, that the failure to duly deliver such notice, or any defect therein, shall not affect the validity of any proceedings
for the redemption of the 2023 Bonds as to which there shall have been no such failure or defect. On and after the date fixed for
redemption (unless the Company shall default in the payment of the 2023 Bonds or portions thereof to be redeemed at the applicable
redemption price, together with accrued and unpaid interest, if any, thereon to, but not including, such date), interest on the
2023 Bonds or the portions thereof so called for redemption shall cease to accrue.

 

SECTION 4. The Bonds
are not redeemable by the operation of the maintenance and replacement provisions of the Indenture or with the proceeds of released
property or in any other manner except as set forth in Section 3 hereof.

 

SECTION 5. The Company
reserves the right, without any consent, vote or other action by the holders of the Bonds or of any subsequent series of bonds
issued under the Indenture, to make such amendments to the Indenture, as supplemented, as shall be necessary in order to amend
Section 17.02 to read as follows:

 

SECTION 17.02. With the consent
of the holders of not less than a majority in principal amount of the bonds at the time outstanding or their attorneys-in-fact
duly authorized, or, if fewer than all series are affected, not less than a majority in principal amount of the bonds at the time
outstanding of each series the rights of the holders of which are affected, voting together, the Company, when authorized by a
resolution, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of
any supplemental indenture or modifying the rights and obligations of the Company and the rights of the holders of any of the bonds
and coupons; provided, however, that no such supplemental indenture shall (1) extend the maturity of any of the bonds or reduce
the rate or extend the time of payment of interest thereon, or reduce the amount of the principal thereof, or reduce any premium
payable on the redemption thereof, without the consent of the holder of each bond so affected, or (2) permit the creation
of any lien, not otherwise permitted, prior to or on a parity with the lien of this Indenture, without the consent of the holders
of all the bonds then outstanding, or (3) reduce the aforesaid percentage of the principal amount of bonds the holders of
which are required to approve any such supplemental indenture, without the consent of the holders of all the bonds then outstanding.
For the purposes of this Section, bonds shall be deemed to be affected by a supplemental indenture if such supplemental indenture
adversely affects or diminishes the rights of holders thereof against the Company or against its property. The Trustee may in its
discretion determine whether or not, in accordance with the foregoing, bonds of any particular series would be affected by any
supplemental indenture and any such determination shall be conclusive upon the holders of bonds of such series and all other series.
Subject to the provisions of Sections 16.02 and 16.03 hereof, the Trustee shall not be liable for any determination made in good
faith in connection herewith.

 

    15

     

    

 

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

 

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

 

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

 

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

 

    16

     

    

 

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

 

SECTION 7. As supplemented
and amended as above set forth, the Indenture is in all respects ratified and confirmed, and the Indenture and all indentures supplemental
thereto shall be read, taken and construed as one and the same instrument.

 

SECTION 8. The Trustee
assumes no responsibility for or in respect of the validity or sufficiency of this Supplemental Indenture or of the Indenture as
hereby supplemented or the due execution hereof by the Company or for or in respect of the recitals and statements contained herein
(other than those contained in the tenth and eleventh recitals hereof), all of which recitals and statements are made solely by
the Company.

 

SECTION 9. This
Supplemental Indenture may be simultaneously executed in several counterparts and all such counterparts executed and delivered,
each as an original, shall constitute but one and the same instrument.

 

SECTION 10. If any
interest payment date or redemption date for the Bonds or the Stated Maturity falls on a day that is not a Business Day, the interest
or principal payment will be made on the next succeeding Business Day (and without any interest or other payment in respect of
any such delay). In the event the date of any notice required or permitted hereunder shall not be a Business Day, then (notwithstanding
any other provision of the Indenture or of any supplemental indenture thereto) such notice need not be made on such date, but may
be made on the next succeeding Business Day with the same force and effect as if made on the date fixed for such notice. “Business
Day” means, with respect to Section 3 and this Section 10, any day, other than a Saturday or Sunday, on which banks
generally are open in New York, New York for the conduct of substantially all of their commercial lending activities and on which
interbank wire transfers can be made on the Fedwire system.

 

SECTION 11. This
Supplemental Indenture and the 2023 Bonds shall be governed by and deemed to be a contract under, and construed in accordance with,
the laws of the State of Michigan, and for all purposes shall be construed in accordance with the laws of such state, except as
may otherwise be required by mandatory provisions of law.

 

SECTION 12. Detailed Description of Property Mortgaged:

 

I.

 

ELECTRIC GENERATING PLANTS AND DAMS

 

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

 

    17

     

    

 

II.

 

ELECTRIC TRANSMISSION LINES

 

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

 

III.

 

ELECTRIC DISTRIBUTION SYSTEMS

 

All the electric distribution
systems of the Company, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement
thereto and not heretofore released from the lien of the Indenture, including substations, transformers, switchboards, towers,
poles, wires, insulators, subways, trenches, conduits, manholes, cables, meters and other appliances and equipment, and all other
property, real or personal, forming a part of or appertaining to or used, occupied or enjoyed in connection with such distribution
systems or any of them or adjacent thereto; together with all real property, rights of way, easements, permits, privileges, franchises,
grants and rights, for or relating to the construction, maintenance or operation thereof, through, over, under or upon any private
property or any public streets or highways within as well as without the corporate limits of any municipal corporation.

 

IV.

 

ELECTRIC SUBSTATIONS, SWITCHING STATIONS
AND SITES

 

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

 

    18

     

    

 

V.

 

GAS COMPRESSOR STATIONS, GAS PROCESSING
PLANTS,

DESULPHURIZATION STATIONS, METERING STATIONS, ODORIZING STATIONS, REGULATORS AND SITES

 

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

 

VI.

 

GAS STORAGE FIELDS

 

The natural gas rights
and interests of the Company, including wells and well lines (but not including natural gas, oil and minerals), the gas gathering
system, the underground gas storage rights, the underground gas storage wells and injection and withdrawal system used in connection
therewith, constructed or otherwise acquired by it and not heretofore described in the Indenture or any supplement thereto and
not heretofore released from the lien of the Indenture: In the Overisel Gas Storage Field, located in the Township of Overisel,
Allegan County, and in the Township of Zeeland, Ottawa County, Michigan; in the Northville Gas Storage Field located in the Township
of Salem, Washtenaw County, Township of Lyon, Oakland County, and the Townships of Northville and Plymouth and City of Plymouth,
Wayne County, Michigan; in the Salem Gas Storage Field, located in the Township of Salem, Allegan County, and in the Township of
Jamestown, Ottawa County, Michigan; in the Ray Gas Storage Field, located in the Townships of Ray and Armada, Macomb County, Michigan;
in the Lenox Gas Storage Field, located in the Townships of Lenox and Chesterfield, Macomb County, Michigan; in the Ira Gas Storage
Field, located in the Township of Ira, St. Clair County, Michigan; in the Puttygut Gas Storage Field, located in the Township of
Casco, St. Clair County, Michigan; in the Four Corners Gas Storage Field, located in the Townships of Casco, China, Cottrellville
and Ira, St. Clair County, Michigan; in the Swan Creek Gas Storage Field, located in the Townships of Casco and Ira, St. Clair
County, Michigan; and in the Hessen Gas Storage Field, located in the Townships of Casco and Columbus, St. Clair County, Michigan.

 

VII.

 

GAS TRANSMISSION LINES

 

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

 

    19

     

    

 

VIII.

 

GAS DISTRIBUTION SYSTEMS

 

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

 

IX.

 

OFFICE BUILDINGS, SERVICE BUILDINGS, GARAGES, ETC.

 

All office, garage, service
and other buildings of the Company, wherever located, in the State of Michigan, constructed or otherwise acquired by it and not
heretofore described in the Indenture or any supplement thereto and not heretofore released from the lien of the Indenture, together
with the land on which the same are situated and all easements, rights of way and appurtenances to said lands, together with all
furniture and fixtures located in said buildings.

 

X.

 

TELEPHONE PROPERTIES AND

RADIO COMMUNICATION EQUIPMENT

 

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

 

    20

     

    

 

XI.

 

OTHER REAL PROPERTY

 

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

 

ALCONA COUNTY

 

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

 

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

 

ALLEGAN COUNTY

 

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

 

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

 

ALPENA COUNTY

 

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

 

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

 

    21

     

    

 

ANTRIM COUNTY

 

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

 

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

 

ARENAC COUNTY

 

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

 

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

 

BARRY COUNTY

 

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

 

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

 

    22

     

    

 

BAY COUNTY

 

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

 

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

 

BENZIE COUNTY

 

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

 

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

 

BRANCH COUNTY

 

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

 

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

 

CALHOUN COUNTY

 

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

 

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

 

CASS COUNTY

 

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

 

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

 

    23

     

    

 

CHARLEVOIX COUNTY

 

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

 

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

 

CHEBOYGAN COUNTY

 

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

 

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

 

CLARE COUNTY

 

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

 

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

 

CLINTON COUNTY

 

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

 

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

 

CRAWFORD COUNTY

 

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

 

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

 

    24

     

    

 

EATON COUNTY

 

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

 

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

 

EMMET COUNTY

 

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

 

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

 

GENESEE COUNTY

 

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

 

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

 

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

 

GLADWIN COUNTY

 

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

 

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

 

    25

     

    

 

GRAND TRAVERSE COUNTY

 

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

 

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

 

GRATIOT COUNTY

 

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

 

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

 

HILLSDALE COUNTY

 

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

 

Lot 238 of
Assessors Plat of the Village of Litchfield.

 

HURON COUNTY

 

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

 

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

 

INGHAM COUNTY

 

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

 

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

 

    26

     

    

 

IONIA COUNTY

 

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

 

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

 

To find the
place of beginning of this description commence at the E 1/4 corner of said section; run thence N 00 degrees 05’ 38”
W along the East line of said section, 1218.43 feet; thence S 67 degrees 18’ 24” W, 1424.45 feet to the East 1/8 line
of said section and the place of beginning of this description; thence continuing S 67 degrees 18’ 24” W, 1426.28 feet
to the North and South 1/4 line of said section at a point which said point is 105.82 feet distant N’ly of the center of
said section as measured along said North and South 1/4 line of said section; thence N 00 degrees 04’ 47” E along said
North and South 1/4 line of said section, 303.67 feet; thence N 67 degrees 18’ 24” E, 1425.78 feet to the East 1/8
line of said section; thence S 00 degrees 00’ 26” E along said East 1/8 line of said section, 303.48 feet to the place
of beginning. (Bearings are based on the East line of Section 15, T5N, R6W, from the E 1/4 corner of said section to the Northeast
corner of said section assumed as N 00 degrees 05’ 38” W.)

 

IOSCO COUNTY

 

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

 

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

 

ISABELLA COUNTY

 

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

 

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

 

    27

     

    

 

JACKSON COUNTY

 

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

 

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

 

KALAMAZOO COUNTY

 

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

 

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

 

KALKASKA COUNTY

 

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

 

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

 

    28

     

    

 

KENT COUNTY

 

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

 

A parcel
of land in the Northwest fractional 1/4 of Section 15, T5N, R10W, described as follows: To find the place of beginning of
this description commence at the North 1/4 corner of said section, run thence S 0 degrees 59’ 26” E along the North
and South 1/4 line of said section 2046.25 feet to the place of beginning of this description, thence continuing S 0 degrees 59’
26” E along said North and South 1/4 line of said section 332.88 feet, thence S 88 degrees 58’ 30” W 2510.90
feet to a point herein designated “Point A” on the East bank of the Thornapple River, thence continuing S 88 degrees
53’ 30” W to the center thread of the Thornapple River, thence NW’ly along the center thread of said Thornapple
River to a point which said point is S 88 degrees 58’ 30” W of a point on the East bank of the Thornapple River herein
designated “Point B”, said “Point B” being N 23 degrees 41’ 35” W 360.75 feet from said above-described
 “Point A”, thence N 88 degrees 58’ 30” E to said “Point B”, thence continuing N 88 degrees
58’ 30” E 2650.13 feet to the place of beginning. (Bearings are based on the East line of Section 15, T5N, R10W
between the East 1/4 corner of said section and the Northeast corner of said section assumed as N 0 degrees 59’ 55”
W.)

 

LAKE COUNTY

 

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

 

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

 

LAPEER COUNTY

 

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

 

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

 

LEELANAU COUNTY

 

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

 

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

 

    29

     

    

 

LENAWEE COUNTY

 

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

 

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

 

LIVINGSTON COUNTY

 

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

 

Parcel 1

 

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

 

Parcel 2

 

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

 

MACOMB COUNTY

 

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

 

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

 

    30

     

    

 

MANISTEE COUNTY

 

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

 

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

 

MASON COUNTY

 

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

 

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

 

Parcel 2: A parcel of land containing
4 acres of the West side of highway, said parcel of land being described as commencing 16 rods South of the Northwest corner of
the NW 1/4 of the SW 1⁄4 of Section 22, T17N, R17W, running thence South 64 rods, thence NE’ly and N’ly and
NW’ly along the W’ly line of said highway to the place of beginning, together with any and all right, title, and interest
of Howard C. Wicklund and Katherine E. Wicklund in and to that portion of the hereinbefore mentioned highway lying adjacent to
the E’ly line of said above described land.

 

MECOSTA COUNTY

 

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

 

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

 

MIDLAND COUNTY

 

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

 

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

 

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MISSAUKEE COUNTY

 

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

 

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

 

MONROE COUNTY

 

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

 

A parcel
of land in the SW1/4 of Section 20, T8S, R6E, described as follows: To find the place of beginning of this description commence
at the S 1/4 post of said section; run thence West along the South line of said section 1269.89 feet to the place of beginning
of this description; thence continuing West along said South line of said section 100 feet; thence N 00 degrees 50’ 35”
E, 250 feet; thence East 100 feet; thence S 00 degrees 50’ 35” W parallel with and 16.5 feet distant W’ly of
as measured perpendicular to the West 1/8 line of said section, as occupied, a distance of 250 feet to the place of beginning.

 

MONTCALM COUNTY

 

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

 

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

 

MONTMORENCY COUNTY

 

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

 

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

 

MUSKEGON COUNTY

 

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

 

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

 

NEWAYGO COUNTY

 

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

 

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

 

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OAKLAND COUNTY

 

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

 

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

 

OCEANA COUNTY

 

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

 

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

 

OGEMAW COUNTY

 

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

 

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

 

OSCEOLA COUNTY

 

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

 

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

 

OSCODA COUNTY

 

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

 

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

 

    33

     

    

 

OTSEGO COUNTY

 

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

 

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

 

OTTAWA COUNTY

 

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

 

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

 

PRESQUE ISLE COUNTY

 

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

 

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

 

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

 

ROSCOMMON COUNTY

 

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

 

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

 

    34

     

    

 

SAGINAW COUNTY

 

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

 

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

 

SANILAC COUNTY

 

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

 

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

 

SHIAWASSEE COUNTY

 

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

 

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

 

ST. CLAIR COUNTY

 

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

 

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

 

ST. JOSEPH COUNTY

 

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

 

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

 

    35

     

    

 

TUSCOLA COUNTY

 

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

 

A strip of
land 280 feet wide across the East 96 rods of the South 20 rods of the N 1/2 of the SE 1/4 of Section 34, T10N, R8E, more
particularly described as commencing at the Northeast corner of Section 3, T9N, R8E, thence S 89 degrees 55’ 35”
W along the South line of said Section 34 a distance of 329.65 feet, thence N 18 degrees 11’ 50” W a distance
of 1398.67 feet to the South 1/8 line of said Section 34 and the place of beginning for this description; thence continuing
N 18 degrees 11’ 50” W a distance of 349.91 feet; thence N 89 degrees 57’ 01” W a distance of 294.80 feet;
thence S 18 degrees 11’ 50” E a distance of 350.04 feet to the South 1/8 line of said Section 34; thence S 89
degrees 58’ 29” E along the South 1/8 line of said section a distance of 294.76 feet to the place of beginning.

 

VAN BUREN COUNTY

 

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

 

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

 

WASHTENAW COUNTY

 

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

 

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

 

    36

     

    

 

WAYNE COUNTY

 

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

 

Commencing
at the Southeast corner of Section 6, T1S, R9E; thence North along the East line of Section 6 a distance of 253 feet
to the point of beginning; thence continuing North along the East line of Section 6 a distance of 50 feet; thence Westerly
parallel to the South line of Section 6, a distance of 215 feet; thence Southerly parallel to the East line of Section 6
a distance of 50 feet; thence easterly parallel with the South line of Section 6 a distance of 215 feet to the point of beginning.

 

WEXFORD COUNTY

 

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

 

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

 

SECTION 13. The
Company is a transmitting utility under Section 9501(2) of the Michigan Uniform Commercial Code (M.C.L. 440.9501(2))
as defined in M.C.L. 440.9102(1)(aaaa).

 

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

 

    37

     

    

 

	 	 	CONSUMERS ENERGY COMPANY
	 
	 	By:	/s/ Srikanth Maddipati 
	 	 	Srikanth Maddipati
	 	 	Vice President and Treasurer
	 
	STATE OF MICHIGAN            )	 
	                                                     ss.
	COUNTY OF JACKSON          )	 

 

The foregoing instrument
was acknowledged before me this 14th day of December 2020, by Srikanth Maddipati, Vice President and Treasurer
of CONSUMERS ENERGY COMPANY, a Michigan corporation, on behalf of the corporation.

 

	 	/s/ Michelle M. Fauser 
	 	Michelle M. Fauser, Notary Public
	{Seal}     	State of Michigan, County of Ingham
	 	My Commission Expires: June 03, 2022
	 	Acting in the County of Jackson

 

    S-1

     

    

 

	 	 	THE BANK OF NEW YORK MELLON,
	 	 	AS TRUSTEE
	 
	 	By:	 /s/ Rita Duggan
	 	 	Rita Duggan
	 	 	Vice President
	 
	STATE OF NEW YORK                 )	 
	                                                        ss.	 
	COUNTY OF NEW YORK             )	 

 

The foregoing instrument
was acknowledged before me this 14th day of December, 2020, by Rita Duggan, a Vice President of THE BANK OF NEW
YORK MELLON, as Trustee, a New York banking corporation, on behalf of the bank.

 

	 	/s/ Helen Choi
	 	Helen Choi
	 	Notary Public, State of New York
	 	No. 01CH6291290
	 	 Qualified in New York County Commission Expires October 15, 2021
	(SEAL)	 

 

	
        Prepared by:

        Melissa M. Gleespen

        One Energy Plaza, EP12-246

        Jackson,
        MI 49201

         
	
        When recorded, return to:

        Consumers Energy Company

        Attn: Lindsey White

        948 S. Cedar St #7

        Mason, MI 48854

 

    S-2

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