Document:

tenx_ex103

Exhibit 10.3

 

REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and
entered into as of July 6, 2020, between Tenax Therapeutics, Inc.,
a Delaware corporation (the “Company”), and each of
the several purchasers signatory hereto (each such purchaser, a
“Purchaser” and,
collectively, the “Purchasers”).

 

               This
Agreement is made pursuant to the Securities Purchase Agreement for
Class E and Class F Units, dated as of the date hereof, between the
Company and each Purchaser (the “Purchase
Agreement”).

 

               The
Company and each Purchaser hereby agrees as follows:

 

        1.           

Definitions.

 

               Capitalized
terms used and not otherwise defined herein that are defined in the
Purchase Agreement shall have the meanings given such terms in the
Purchase Agreement. As used in this Agreement, the following
terms shall have the following meanings:

 

“Advice” shall have the
meaning set forth in Section 6(c).

 

“Effectiveness Date”
means, with respect to the Initial Registration Statement required
to be filed hereunder, the 120th calendar day
following the date hereof (or, in the event of a “full
review” by the Commission, the 150th calendar day
following the date hereof) and with respect to any additional
Registration Statements which may be required pursuant to Section
2(c) or Section 3(c), the 120th calendar day
following the date on which an additional Registration Statement is
required to be filed hereunder (or, in the event of a “full
review” by the Commission, the 150th calendar day
following the date such additional Registration Statement is
required to be filed hereunder); provided, however, that in the event the
Company is notified by the Commission that one or more of the above
Registration Statements will not be reviewed or is no longer
subject to further review and comments, the Effectiveness Date as
to such Registration Statement shall be the fifth Trading Day
following the date on which the Company is so notified if such date
precedes the dates otherwise required above, provided, further, if
such Effectiveness Date falls on a day that is not a Trading Day,
then the Effectiveness Date shall be the next succeeding Trading
Day.

 

“Effectiveness Period”
shall have the meaning set forth in Section 2(a).

 

“Event” shall have the
meaning set forth in Section 2(d).

 

“Event Date” shall have
the meaning set forth in Section 2(d).

 

 

 

“Filing Date” means, with
respect to the Initial Registration Statement required hereunder,
the 60th
calendar day following the date hereof and, with respect to any
additional Registration Statements which may be required pursuant
to Section 2(c) or Section 3(c), the earliest practical date on
which the Company is permitted by SEC Guidance to file such
additional Registration Statement related to the Registrable
Securities.

 

“Holder” or
“Holders” means the holder
or holders, as the case may be, from time to time of Registrable
Securities.

 

“Indemnified Party” shall
have the meaning set forth in Section 5(c).

 

“Indemnifying Party” shall
have the meaning set forth in Section 5(c).

 

“Initial Registration
Statement” means the initial Registration Statement
filed pursuant to this Agreement.

 

“Losses” shall have the
meaning set forth in Section 5(a).

 

“Plan of Distribution”
shall have the meaning set forth in Section 2(a).

 

“Prospectus” means the
prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated by
the Commission pursuant to the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities
covered by a Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments,
and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.

 

2

 

 

“Registrable Securities”
means, as of any date of determination, (a) all Shares, (b) all
Warrant Shares then issued and issuable upon exercise of the
Warrants (assuming on such date the Warrants are exercised in full
without regard to any exercise limitations therein), (c) all shares
of Common Stock issuable upon exercise of the Series B Common Stock
Purchase Warrants of the Company issued pursuant to that certain
Securities Purchase Agreement for Class C and Class D Units dated
as of the date of the Purchase Agreement (assuming on such date the
Warrants are exercised in full without regard to any exercise
limitations therein) and (d) any securities issued or then issuable
upon any stock split, dividend or other distribution,
recapitalization or similar event with respect to the foregoing;
provided,
however, that any
such Registrable Securities shall cease to be Registrable
Securities (and the Company shall not be required to maintain the
effectiveness of any, or file another, Registration Statement
hereunder with respect thereto) for so long as (a) a Registration
Statement with respect to the sale of such Registrable Securities
is declared effective by the Commission under the Securities Act
and such Registrable Securities have been disposed of by the Holder
in accordance with such effective Registration Statement, (b) such
Registrable Securities have been previously sold in accordance with
Rule 144, or (c) such securities become eligible for resale without
volume or manner-of-sale restrictions and without current public
information pursuant to Rule 144 as set forth in a written opinion
letter to such effect, addressed, delivered and acceptable to the
Transfer Agent and the affected Holders (assuming that such
securities and any securities issuable upon exercise, conversion or
exchange of which, or as a dividend upon which, such securities
were issued or are issuable, were at no time held by any Affiliate
of the Company, and all Warrants are exercised by “cashless
exercise” as provided in each of such Registrable Securities,
as reasonably determined by the Company, upon the advice of counsel
to the Company.

 

“Registration Statement”
means any registration statement required to be filed hereunder
pursuant to Section 2(a) and any additional registration statements
contemplated by Section 2(c) or Section 3(c), including (in each
case) the Prospectus, amendments and supplements to any such
registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference
in any such registration statement.

 

 “Rule
415” means Rule 415 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended or
interpreted from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.

 

“Rule 424” means Rule 424
promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended or interpreted from time to time, or any
similar rule or regulation hereafter adopted by the Commission
having substantially the same purpose and effect as such
Rule.

 

“Selling Stockholder
Questionnaire” shall have the meaning set forth in
Section 3(a).

 

“SEC Guidance” means (i)
any publicly-available written or oral guidance of the Commission
staff, or any comments, requirements or requests of the Commission
staff and (ii) the Securities Act.

 

 

3

 

 

        2.      

Shelf
Registration.

 

(a)           On
or prior to each Filing Date, the Company shall prepare and file
with the Commission a Registration Statement covering the resale of
all of the Registrable Securities that are not then registered on
an effective Registration Statement for an offering to be made on a
continuous basis pursuant to Rule 415. Each Registration Statement
filed hereunder shall be on Form S-3 (except if the Company is not
then eligible to register for resale the Registrable Securities on
Form S-3, in which case such registration shall be on another
appropriate form in accordance herewith, subject to the provisions
of Section 2(e)) and shall contain (unless otherwise directed by at
least 85% in interest of the Holders) substantially the
“Plan of
Distribution” attached hereto as Annex A and substantially the
“Selling
Stockholder” section attached hereto as Annex B; provided, however, that no Holder shall
be required to be named as an “underwriter” without
such Holder’s express prior written consent. Subject to the
terms of this Agreement, the Company shall use its best efforts to
cause a Registration Statement filed under this Agreement
(including, without limitation, under Section 3(c)) to be declared
effective under the Securities Act as promptly as possible after
the filing thereof, but in any event no later than the applicable
Effectiveness Date, and shall use its best efforts to keep such
Registration Statement continuously effective under the Securities
Act until the date that all Registrable Securities covered by such
Registration Statement (i) have been sold, thereunder or pursuant
to Rule 144, or (ii) may be sold without volume or manner-of-sale
restrictions pursuant to Rule 144 and without the requirement for
the Company to be in compliance with the current public information
requirement under Rule 144, as determined by the counsel to the
Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Transfer Agent and the affected
Holders (the “Effectiveness Period”).
The Company shall telephonically request effectiveness of a
Registration Statement as of 5:00 p.m. (New York City time) on a
Trading Day. The Company shall immediately notify the Holders via
facsimile or by e-mail of the effectiveness of a Registration
Statement on the same Trading Day that the Company telephonically
confirms effectiveness with the Commission, which shall be the date
requested for effectiveness of such Registration Statement. The
Company shall, by 9:30 a.m. (New York City time) on the Trading Day
after the effective date of such Registration Statement, file a
final Prospectus with the Commission as required by Rule 424.
Failure to so notify the Holder within one (1) Trading Day of such
notification of effectiveness or failure to file a final Prospectus
as foresaid shall be deemed an Event under Section
2(d).

 

(b)           
Notwithstanding the registration obligations set forth in Section
2(a), if the Commission informs the Company that all of the
Registrable Securities cannot, as a result of the application of
Rule 415, be registered for resale as a secondary offering on a
single registration statement, the Company agrees to promptly
inform each of the Holders thereof and use its commercially
reasonable efforts to file amendments to the Initial Registration
Statement as required by the Commission, covering the maximum
number of Registrable Securities permitted to be registered by the
Commission, on Form S-3 or such other form available to register
for resale the Registrable Securities as a secondary offering,
subject to the provisions of Section 2(e); with respect to filing
on Form S-3 or other appropriate form, and subject to the
provisions of Section 2(d) with respect to the payment of
liquidated damages; provided, however, that prior to filing
such amendment, the Company shall be obligated to use diligent
efforts to advocate with the Commission for the registration of all
of the Registrable Securities in accordance with the SEC Guidance,
including without limitation, Compliance and Disclosure
Interpretation 612.09.

 

 

4

 

 

(c)           Notwithstanding
any other provision of this Agreement and subject to the payment of
liquidated damages pursuant to Section 2(d), if the Commission or
any SEC Guidance sets forth a limitation on the number of
Registrable Securities permitted to be registered on a particular
Registration Statement as a secondary offering (and notwithstanding
that the Company used diligent efforts to advocate with the
Commission for the registration of all or a greater portion of
Registrable Securities), unless otherwise directed in writing by a
Holder as to its Registrable Securities, the number of Registrable
Securities to be registered on such Registration Statement will be
reduced as follows:

 

a. 

First,
the Company shall reduce or eliminate any securities to be included
other than Registrable Securities;

 

b. 

Second,
the Company shall reduce Registrable Securities represented by the
Series B Common Stock Purchase Warrant Shares and the Series C
Common Stock Purchase Warrants (applied, in the case that some such
warrant shares may be registered, to the Holders and holders
thereof on a pro rata basis based on the total number of
unregistered Registrable Securities held by such Holders);
and

 

c. 

Third,
the Company shall reduce Registrable Securities represented by any
Pre-Funded Warrant Shares (applied, in the case that some
Pre-Funded Warrant Shares may be registered, to the Holders on a
pro rata basis based on the total number of unregistered Pre-Funded
Warrant Shares held by such Holders).

 

In
the event of a cutback hereunder, the Company shall give the Holder
at least five (5) Trading Days prior written notice along with the
calculations as to such Holder’s allotment. In the event the
Company amends the Initial Registration Statement in accordance
with the foregoing, the Company will use its best efforts to file
with the Commission, as promptly as allowed by Commission or SEC
Guidance provided to the Company or to registrants of securities in
general, one or more registration statements on Form S-3 or such
other form available to register for resale those Registrable
Securities that were not registered for resale on the Initial
Registration Statement, as amended.

 

 

 

5

 

 

(d)           If:
(i) the Initial Registration Statement is not filed on or prior to
its Filing Date (if the Company files the Initial Registration
Statement without affording the Holders the opportunity to review
and comment on the same as required by Section 3(a) herein, the
Company shall be deemed to have not satisfied this clause (i)), or
(ii) the Company fails to file with the Commission a request for
acceleration of a Registration Statement in accordance with Rule
461 promulgated by the Commission pursuant to the Securities Act,
within five Trading Days of the date that the Company is notified
(orally or in writing, whichever is earlier) by the Commission that
such Registration Statement will not be “reviewed” or
will not be subject to further review, or (iii) prior to the
effective date of a Registration Statement, the Company fails to
file a pre-effective amendment and otherwise respond in writing to
comments made by the Commission in respect of such Registration
Statement within ten (10) calendar days after the receipt of
comments by or notice from the Commission that such amendment is
required in order for such Registration Statement to be declared
effective, or (iv) a Registration Statement registering for resale
all of the Registrable Securities is not declared effective by the
Commission by the Effectiveness Date of the Initial Registration
Statement, or (v) after the effective date of a Registration
Statement, such Registration Statement ceases for any reason to
remain continuously effective as to all Registrable Securities
included in such Registration Statement, or the Holders are
otherwise not permitted to utilize the Prospectus therein to resell
such Registrable Securities, for more than ten (10) consecutive
calendar days or more than an aggregate of fifteen (15) calendar
days (which need not be consecutive calendar days) during any
12-month period (any such failure or breach being referred to as an
“Event”, and for purposes
of clauses (i) and (iv), the date on which such Event occurs, and
for purpose of clause (ii) the date on which such five (5) Trading
Day period is exceeded, and for purpose of clause (iii) the date
which such ten (10) calendar day period is exceeded, and for
purpose of clause (v) the date on which such ten (10) or fifteen
(15) calendar day period, as applicable, is exceeded being referred
to as “Event
Date”), then, in addition to any other rights the
Holders may have hereunder or under applicable law, on each such
Event Date and on each monthly anniversary of each such Event Date
(if the applicable Event shall not have been cured by such date)
until the applicable Event is cured, the Company shall pay to each
Holder an amount in cash, as partial liquidated damages and not as
a penalty, equal to the product of 1.0% multiplied by the aggregate
Subscription Amount paid by such Holder pursuant to the Purchase
Agreement. If the Company fails to pay any partial liquidated
damages pursuant to this Section in full within seven days after
the date payable, the Company will pay interest thereon at a rate
of 18% per annum (or such lesser maximum amount that is permitted
to be paid by applicable law) to the Holder, accruing daily from
the date such partial liquidated damages are due until such
amounts, plus all such interest thereon, are paid in full. The
partial liquidated damages pursuant to the terms hereof shall apply
on a daily pro rata basis for any portion of a month prior to the
cure of an Event.

 

(e)           If
Form S-3 is not available for the registration of the resale of
Registrable Securities hereunder, the Company shall (i) register
the resale of the Registrable Securities on another appropriate
form and (ii) undertake to register the Registrable Securities on
Form S-3 as soon as such form is available, provided that the
Company shall maintain the effectiveness of the Registration
Statement then in effect until such time as a Registration
Statement on Form S-3 covering the Registrable Securities has been
declared effective by the Commission.

 

 

6

 

 

(f)           Notwithstanding
anything to the contrary contained herein, in no event shall the
Company be permitted to name any Holder or affiliate of a Holder as
any Underwriter without the prior written consent of such
Holder.

 

3.            

Registration
Procedures.

 

               In
connection with the Company’s registration obligations
hereunder, the Company shall:

 

(a)           Not
less than three (3) Trading Days prior to the filing of each
Registration Statement and not less than one (1) Trading Day prior
to the filing of any related Prospectus or any amendment or
supplement thereto (including any document that would be
incorporated or deemed to be incorporated therein by reference),
the Company shall (i) furnish to each Holder copies of all such
documents proposed to be filed, which documents (other than those
incorporated or deemed to be incorporated by reference) will be
subject to the review of such Holders, and (ii) cause its officers
and directors, counsel and independent registered public
accountants to respond to such inquiries as shall be necessary, in
the reasonable opinion of respective counsel to each Holder, to
conduct a reasonable investigation within the meaning of the
Securities Act. The Company shall not file a Registration Statement
or any such Prospectus or any amendments or supplements thereto to
which the Holders of a majority of the Registrable Securities shall
reasonably object in good faith, provided that, the Company is
notified of such objection in writing no later than five (5)
Trading Days after the Holders have been so furnished copies of a
Registration Statement or one (1) Trading Day after the Holders
have been so furnished copies of any related Prospectus or
amendments or supplements thereto. Each Holder agrees to furnish to
the Company a completed questionnaire in the form attached to this
Agreement as Annex
C (a “Selling
Stockholder Questionnaire”) on a date that is not less
than two (2) Trading Days prior to the Filing Date or by the end of
the fourth (4th) Trading Day
following the date on which such Holder receives draft materials in
accordance with this Section.

 

(b)           (i)
Prepare and file with the Commission such amendments, including
post-effective amendments, to a Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep
a Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and
prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act
all of the Registrable Securities, (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus
supplement (subject to the terms of this Agreement), and, as so
supplemented or amended, to be filed pursuant to Rule 424, (iii)
respond as promptly as reasonably possible to any comments received
from the Commission with respect to a Registration Statement or any
amendment thereto and provide as promptly as reasonably possible to
the Holders true and complete copies of all correspondence from and
to the Commission relating to a Registration Statement (provided
that, the Company shall excise any information contained therein
which would constitute material non-public information regarding
the Company or any of its Subsidiaries), and (iv) comply in all
material respects with the applicable provisions of the Securities
Act and the Exchange Act with respect to the disposition of all
Registrable Securities covered by a Registration Statement during
the applicable period in accordance (subject to the terms of this
Agreement) with the intended methods of disposition by the Holders
thereof set forth in such Registration Statement as so amended or
in such Prospectus as so supplemented.

 

 

7

 

 

(c)           If
during the Effectiveness Period, the number of Registrable
Securities at any time exceeds 100% of the number of shares of
Common Stock then registered in a Registration Statement, then the
Company shall file as soon as reasonably practicable, but in any
case prior to the applicable Filing Date, an additional
Registration Statement covering the resale by the Holders of not
less than the number of such Registrable Securities.

 

(d)           Notify
the Holders of Registrable Securities to be sold (which notice
shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus
until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less
than one (1) Trading Day prior to such filing) and (if requested by
any such Person) confirm such notice in writing no later than one
(1) Trading Day following the day (i)(A) when a Prospectus or any
Prospectus supplement or post-effective amendment to a Registration
Statement is proposed to be filed, (B) when the Commission notifies
the Company whether there will be a “review” of such
Registration Statement and whenever the Commission comments in
writing on such Registration Statement, and (C) with respect to a
Registration Statement or any post-effective amendment, when the
same has become effective, (ii) of any request by the Commission or
any other federal or state governmental authority for amendments or
supplements to a Registration Statement or Prospectus or for
additional information, (iii) of the issuance by the Commission or
any other federal or state governmental authority of any stop order
suspending the effectiveness of a Registration Statement covering
any or all of the Registrable Securities or the initiation of any
Proceedings for that purpose, (iv) of the receipt by the Company of
any notification with respect to the suspension of the
qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction, or the
initiation or threatening of any Proceeding for such purpose, (v)
of the occurrence of any event or passage of time that makes the
financial statements included in a Registration Statement
ineligible for inclusion therein or any statement made in a
Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to a Registration
Statement, Prospectus or other documents so that, in the case of a
Registration Statement or the Prospectus, as the case may be, it
will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under
which they were made, not misleading, and (vi) of the occurrence or
existence of any pending corporate development with respect to the
Company that the Company believes may be material and that, in the
determination of the Company, makes it not in the best interest of
the Company to allow continued availability of a Registration
Statement or Prospectus; provided, however, that in no event shall
any such notice contain any information which would constitute
material, non-public information regarding the Company or any of
its Subsidiaries.

 

 

8

 

 

(e)           Use
its best efforts to avoid the issuance of, or, if issued, obtain
the withdrawal of (i) any order stopping or suspending the
effectiveness of a Registration Statement, or (ii) any suspension
of the qualification (or exemption from qualification) of any of
the Registrable Securities for sale in any jurisdiction, at the
earliest practicable moment.

 

(f)           Furnish
to each Holder, without charge, at least one conformed copy of each
such Registration Statement and each amendment thereto, including
financial statements and schedules, all documents incorporated or
deemed to be incorporated therein by reference to the extent
requested by such Person, and all exhibits to the extent requested
by such Person (including those previously furnished or
incorporated by reference) promptly after the filing of such
documents with the Commission, provided that any such item which is
available on the EDGAR system (or successor thereto) need not be
furnished in physical form.

 

(g)           Subject
to the terms of this Agreement, the Company hereby consents to the
use of such Prospectus and each amendment or supplement thereto by
each of the selling Holders in connection with the offering and
sale of the Registrable Securities covered by such Prospectus and
any amendment or supplement thereto, except after the giving of any
notice pursuant to Section 3(d).

 

(h)           
Prior to any resale of Registrable Securities by a Holder, use its
commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or
qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under
the securities or Blue Sky laws of such jurisdictions within the
United States as any Holder reasonably requests in writing, to keep
each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all
other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each
Registration Statement, provided that the Company shall not be
required to qualify generally to do business in any jurisdiction
where it is not then so qualified, subject the Company to any
material tax in any such jurisdiction where it is not then so
subject or file a general consent to service of process in any such
jurisdiction.

 

 

9

 

 

(i)           If
requested by a Holder, cooperate with such Holder to facilitate the
timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to
a Registration Statement, which certificates shall be free, to the
extent permitted by the Purchase Agreement, of all restrictive
legends, and to enable such Registrable Securities to be in such
denominations and registered in such names as any such Holder may
request.

 

(j)           Upon
the occurrence of any event contemplated by Section 3(d), as
promptly as reasonably possible under the circumstances taking into
account the Company’s good faith assessment of any adverse
consequences to the Company and its stockholders of the premature
disclosure of such event, prepare a supplement or amendment,
including a post-effective amendment, to a Registration Statement
or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, and
file any other required document so that, as thereafter delivered,
neither a Registration Statement nor such Prospectus will contain
an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they
were made, not misleading. If the
Company notifies the Holders in accordance with clauses (iii)
through (vi) of Section 3(d) above to suspend the use of any
Prospectus until the requisite changes to such Prospectus have been
made, then the Holders shall suspend use of such Prospectus. The
Company will use its best efforts to ensure that the use of the
Prospectus may be resumed as promptly as is practicable. The
Company shall be entitled to exercise its right under this Section
3(j) to suspend the availability of a Registration Statement and
Prospectus, subject to the payment of partial liquidated damages
otherwise required pursuant to Section 2(d), for a period not to
exceed 60 calendar days (which need not be consecutive days) in any
12-month period.

 

(k)       
Otherwise use commercially reasonable efforts to comply with all
applicable rules and regulations of the Commission under the
Securities Act and the Exchange Act, including, without limitation,
Rule 172 under the Securities Act, file any final Prospectus,
including any supplement or amendment thereof, with the Commission
pursuant to Rule 424 under the Securities Act, promptly inform the
Holders in writing if, at any time during the Effectiveness Period,
the Company does not satisfy the conditions specified in Rule 172
and, as a result thereof, the Holders are required to deliver a
Prospectus in connection with any disposition of Registrable
Securities and take such other actions as may be reasonably
necessary to facilitate the registration of the Registrable
Securities hereunder.

 

(l)           The
Company shall use its best efforts to maintain eligibility for use
of Form S-3 (or any successor form thereto) for the registration of
the resale of Registrable Securities.

 

 

10

 

 

(m)           The
Company may require each selling Holder to furnish to the Company a
certified statement as to the number of shares of Common Stock
beneficially owned by such Holder and, if required by the
Commission, the natural persons thereof that have voting and
dispositive control over the shares. During any periods that the
Company is unable to meet its obligations hereunder with respect to
the registration of the Registrable Securities solely because any
Holder fails to furnish such information within three Trading Days
of the Company’s request, any liquidated damages that are
accruing at such time as to such Holder only shall be tolled and
any Event that may otherwise occur solely because of such delay
shall be suspended as to such Holder only, until such information
is delivered to the Company.

 

        4.         

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

 

11

 

 

        5.                       

Indemnification.

 

(a)           Indemnification
by the Company. The Company shall, notwithstanding any
termination of this Agreement, indemnify and hold harmless each
Holder, the officers, directors, members, partners, agents, brokers
(including brokers who offer and sell Registrable Securities as
principal as a result of a pledge or any failure to perform under a
margin call of Common Stock), investment advisors and employees
(and any other Persons with a functionally equivalent role of a
Person holding such titles, notwithstanding a lack of such title or
any other title) of each of them, each Person who controls any such
Holder (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) and the officers, directors,
members, stockholders, partners, agents and employees (and any
other Persons with a functionally equivalent role of a Person
holding such titles, notwithstanding a lack of such title or any
other title) of each such controlling Person, to the fullest extent
permitted by applicable law, from and against any and all losses,
claims, damages, liabilities, costs (including, without limitation,
reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred,
arising out of or relating to (1) any untrue or alleged untrue
statement of a material fact contained in a Registration Statement,
any Prospectus or any form of prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out
of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus or supplement
thereto, in light of the circumstances under which they were made)
not misleading or (2) any violation or alleged violation by the
Company of the Securities Act, the Exchange Act or any state
securities law, or any rule or regulation thereunder, in connection
with the performance of its obligations under this Agreement,
except to the extent, but only to the extent, that (i) such untrue
statements or omissions are based solely upon information regarding
such Holder furnished in writing to the Company by such Holder
expressly for use therein, or to the extent that such information
relates to such Holder or such Holder’s proposed method of
distribution of Registrable Securities and was reviewed and
expressly approved in writing by such Holder expressly for use in a
Registration Statement, such Prospectus or in any amendment or
supplement thereto (it being understood that the Holder has
approved Annex B hereto for this purpose) or (ii) in the case of an
occurrence of an event of the type specified in Section
3(d)(iii)-(vi), the use by such Holder of an outdated, defective or
otherwise unavailable Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated, defective
or otherwise unavailable for use by such Holder and prior to the
receipt by such Holder of the Advice contemplated in Section 6(c).
The Company shall notify the Holders promptly of the institution,
threat or assertion of any Proceeding arising from or in connection
with the transactions contemplated by this Agreement of which the
Company is aware. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of such
indemnified person and shall survive the transfer of any
Registrable Securities by any of the Holders in accordance with
Section 6(f).

 

 

12

 

 

(b)           Indemnification
by Holders. Each Holder shall, severally and not jointly,
indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within
the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act), and the directors, officers, agents or employees
of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses, as incurred, to the
extent arising out of or based solely upon: any untrue or alleged
untrue statement of a material fact contained in any Registration
Statement, any Prospectus, or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or
relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus or supplement thereto, in
light of the circumstances under which they were made) not
misleading (i) to the extent, but only to the extent, that such
untrue statement or omission is contained in any information so
furnished in writing by such Holder to the Company expressly for
inclusion in such Registration Statement or such Prospectus or (ii)
to the extent, but only to the extent, that such information
relates to such Holder’s information provided in the Selling
Stockholder Questionnaire or the proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in
writing by such Holder expressly for use in a Registration
Statement (it being understood that the Holder has approved Annex B
hereto for this purpose), such Prospectus or in any amendment or
supplement thereto. In no event shall the liability of a selling
Holder be greater in amount than the dollar amount of the proceeds
(net of all expenses paid by such Holder in connection with any
claim relating to this Section 5 and the amount of any damages such
Holder has otherwise been required to pay by reason of such untrue
statement or omission) received by such Holder upon the sale of the
Registrable Securities included in the Registration Statement
giving rise to such indemnification obligation.

 

(c)           Conduct
of Indemnification Proceedings. If any Proceeding shall be
brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such
Indemnified Party shall promptly notify the Person from whom
indemnity is sought (the “Indemnifying Party”) in
writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of counsel reasonably
satisfactory to the Indemnified Party and the payment of all fees
and expenses incurred in connection with defense thereof, provided
that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or
liabilities pursuant to this Agreement, except (and only) to the
extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or
further review) that such failure shall have materially and
adversely prejudiced the Indemnifying Party.

 

 

13

 

 

               An
Indemnified Party shall have the right to employ separate counsel
in any such Proceeding and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense
of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses, (2) the
Indemnifying Party shall have failed promptly to assume the defense
of such Proceeding and to employ counsel reasonably satisfactory to
such Indemnified Party in any such Proceeding, or (3) the named
parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and
counsel to the Indemnified Party shall reasonably believe that a
material conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the
Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ
separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense
thereof and the reasonable fees and expenses of no more than one
separate counsel shall be at the expense of the Indemnifying
Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written
consent, which consent shall not be unreasonably withheld or
delayed. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a
party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding.

 

               Subject
to the terms of this Agreement, all reasonable fees and expenses of
the Indemnified Party (including reasonable fees and expenses to
the extent incurred in connection with investigating or preparing
to defend such Proceeding in a manner not inconsistent with this
Section) shall be paid to the Indemnified Party, as incurred,
within ten Trading Days of written notice thereof to the
Indemnifying Party, provided that the Indemnified Party shall
promptly reimburse the Indemnifying Party for that portion of such
fees and expenses applicable to such actions for which such
Indemnified Party is finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or
further review) not to be entitled to indemnification
hereunder.

 

(d)           Contribution.
If the indemnification under Section 5(a) or 5(b) is unavailable to
an Indemnified Party or insufficient to hold an Indemnified Party
harmless for any Losses, then each Indemnifying Party shall
contribute to the amount paid or payable by such Indemnified Party,
in such proportion as is appropriate to reflect the relative fault
of the Indemnifying Party and Indemnified Party in connection with
the actions, statements or omissions that resulted in such Losses
as well as any other relevant equitable considerations. The
relative fault of such Indemnifying Party and Indemnified Party
shall be determined by reference to, among other things, whether
any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information
supplied by, such Indemnifying Party or Indemnified Party, and the
parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such action, statement or
omission. The amount paid or payable by a party as a result of any
Losses shall be deemed to include, subject to the limitations set
forth in this Agreement, any reasonable attorneys’ or other
fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for
such fees or expenses if the indemnification provided for in this
Section was available to such party in accordance with its
terms.

 

 

14

 

 

               The
parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro
rata allocation or by any other method of allocation that does not
take into account the equitable considerations referred to in the
immediately preceding paragraph. In no event shall the contribution
obligation of a Holder of Registrable Securities be greater in
amount than the dollar amount of the proceeds (net of all expenses
paid by such Holder in connection with any claim relating to this
Section 5 and the amount of any damages such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission) received by it upon the
sale of the Registrable Securities giving rise to such contribution
obligation.

 

The
indemnity and contribution agreements contained in this Section are
in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties.

 

        6.            

Miscellaneous.

 

(a)           Remedies.
In the event of a breach by the Company or by a Holder of any of
their respective obligations under this Agreement, each Holder or
the Company, as the case may be, in addition to being entitled to
exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific
performance of its rights under this Agreement. Each of the Company
and each Holder agrees that monetary damages would not provide
adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further
agrees that, in the event of any action for specific performance in
respect of such breach, it shall not assert or shall waive the
defense that a remedy at law would be adequate.

 

(b)           No
Piggyback on Registrations; Prohibition on Filing Other
Registration Statements. Neither the Company nor any of its
security holders (other than the Holders in such capacity pursuant
hereto) may include securities of the Company in any Registration
Statements other than the Registrable Securities, except that,
subject to Section 2(c), the Company may at its discretion include
2,360,313 shares of Common Stock underlying warrants issued to a
Holder on March 12, 2020 and 207,253 issued to Ladenburg Thalmann
& Co. Inc. The Company shall not file any other registration
statements until all Registrable Securities are registered pursuant
to a Registration Statement that is declared effective by the
Commission, provided that this Section 6(b) shall not prohibit the
Company from filing amendments to registration statements filed
prior to the date of this Agreement so long as no new securities
are registered on any such existing registration
statements.

 

 

15

 

 

(c)           Discontinued
Disposition. By its acquisition of Registrable Securities,
each Holder agrees that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Section
3(d)(iii) through (vi), such Holder will forthwith discontinue
disposition of such Registrable Securities under a Registration
Statement until it is advised in writing (the “Advice”) by the Company
that the use of the applicable Prospectus (as it may have been
supplemented or amended) may be resumed. The Company will use its
best efforts to ensure that the use of the Prospectus may be
resumed as promptly as is practicable. The Company agrees and
acknowledges that any periods during which the Holder is required
to discontinue the disposition of the Registrable Securities
hereunder shall be subject to the provisions of Section
2(d).

 

(d)           Amendments
and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the same shall be in
writing and signed by the Company and the Holders of 50.1% or more
of the then outstanding Registrable Securities (for purposes of
clarification, this includes any Registrable Securities issuable
upon exercise or conversion of any Security), provided that, if any
amendment, modification or waiver disproportionately and adversely
impacts a Holder (or group of Holders), the consent of such
disproportionately impacted Holder (or group of Holders) shall be
required. If a Registration Statement does not register all of the
Registrable Securities pursuant to a waiver or amendment done in
compliance with the previous sentence, then the number of
Registrable Securities to be registered for each Holder shall be
reduced pro rata among all Holders and each Holder shall have the
right to designate which of its Registrable Securities shall be
omitted from such Registration Statement. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof
with respect to a matter that relates exclusively to the rights of
a Holder or some Holders and that does not directly or indirectly
affect the rights of other Holders may be given only by such Holder
or Holders of all of the Registrable Securities to which such
waiver or consent relates; provided, however, that the provisions of
this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the first sentence of this
Section 6(d). No consideration shall be offered or paid to any
Person to amend or consent to a waiver or modification of any
provision of this Agreement unless the same consideration also is
offered to all of the parties to this Agreement.

 

(e)           Notices.
Any and all notices or other communications or deliveries required
or permitted to be provided hereunder shall be delivered as set
forth in the Purchase Agreement.

 

(f)           Successors
and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each Holder. The
Company may not assign (except by merger) its rights or obligations
hereunder without the prior written consent of all of the Holders
of the then outstanding Registrable Securities. Each Holder may
assign their respective rights hereunder in the manner and to the
Persons as permitted under Section 5.7 of the Purchase
Agreement.

 

(g)           No
Inconsistent Agreements. Neither the Company nor any of its
Subsidiaries has entered, as of the date hereof, nor shall the
Company or any of its Subsidiaries, on or after the date of this
Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the
Holders in this Agreement or otherwise conflicts with the
provisions hereof. Neither the Company nor any of its Subsidiaries
has previously entered into any agreement granting any registration
rights with respect to any of its securities to any Person that
have not been satisfied in full.

 

 

16

 

 

 

(h)           Execution
and Counterparts. This Agreement may be executed in two or
more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to
the other party, it being understood that both parties need not
sign the same counterpart. In the event that any signature is
delivered by facsimile transmission or by e-mail delivery of a
“.pdf” format data file, such signature shall create a
valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect
as if such facsimile or “.pdf” signature page were an
original thereof.

 

(i)           Governing
Law. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be
determined in accordance with the provisions of the Purchase
Agreement.

 

(j)           Cumulative
Remedies. The remedies provided herein are cumulative and
not exclusive of any other remedies provided by law.

 

(k)           Severability.
If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their
commercially reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It
is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

(l)           Headings.
The headings in this Agreement are for convenience only, do not
constitute a part of the Agreement and shall not be deemed to limit
or affect any of the provisions hereof.

 

(m)           Independent
Nature of Holders’ Obligations and Rights. The
obligations of each Holder hereunder are several and not joint with
the obligations of any other Holder hereunder, and no Holder shall
be responsible in any way for the performance of the obligations of
any other Holder hereunder. Nothing contained herein or in any
other agreement or document delivered at any closing, and no action
taken by any Holder pursuant hereto or thereto, shall be deemed to
constitute the Holders as a partnership, an association, a joint
venture or any other kind of group or entity, or create a
presumption that the Holders are in any way acting in concert or as
a group or entity with respect to such obligations or the
transactions contemplated by this Agreement or any other matters,
and the Company acknowledges that the Holders are not acting in
concert or as a group, and the Company shall not assert any such
claim, with respect to such obligations or transactions. Each
Holder shall be entitled to protect and enforce its rights,
including without limitation the rights arising out of this
Agreement, and it shall not be necessary for any other Holder to be
joined as an additional party in any proceeding for such purpose.
The use of a single agreement with respect to the obligations of
the Company contained was solely in the control of the Company, not
the action or decision of any Holder, and was done solely for the
convenience of the Company and not because it was required or
requested to do so by any Holder. It is expressly understood and
agreed that each provision contained in this Agreement is between
the Company and a Holder, solely, and not between the Company and
the Holders collectively and not between and among
Holders.

 

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

 

 

(Signature Pages Follow)

 

17

 

 

               IN
WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

 

	
 

	

TENAX THERAPEUTICS, INC.

 

 

	
 

	

By:                                          

 
    Name: Michael Jebsen

 
    Title: Chief Financial Officer

 

	
 

	
 

 

 

 

 

 

 

 

 

 

[SIGNATURE
PAGE OF HOLDERS FOLLOWS]

 

 

18

 

[SIGNATURE
PAGE OF HOLDERS TO TENX RRA]

 

 

Name of
Holder: ______________________

 

Signature of Authorized Signatory of
Holder: _____________

 

Name of
Authorized Signatory: _______________________

 

Title
of Authorized Signatory: __________________________

 

 

 

[SIGNATURE PAGES
CONTINUE]

 

19

 

Annex A

 

Plan of Distribution

 

Each
Selling Stockholder (the “Selling Stockholders”) of
the securities and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of
their securities covered hereby on the principal Trading Market or
any other stock exchange, market or trading facility on which the
securities are traded or in private transactions. These sales may
be at fixed or negotiated prices. A Selling Stockholder may use any
one or more of the following methods when selling
securities:

 

● 

ordinary brokerage
transactions and transactions in which the broker-dealer solicits
purchasers;

 

● 

block trades in
which the broker-dealer will attempt to sell the securities as
agent but may position and resell a portion of the block as
principal to facilitate the transaction;

 

● 

purchases by a
broker-dealer as principal and resale by the broker-dealer for its
account;

 

● 

an exchange
distribution in accordance with the rules of the applicable
exchange;

 

● 

privately
negotiated transactions;

 

● 

settlement of short
sales;

 

● 

in transactions
through broker-dealers that agree with the Selling Stockholders to
sell a specified number of such securities at a stipulated price
per security;

 

● 

through the writing
or settlement of options or other hedging transactions, whether
through an options exchange or otherwise;

 

● 

a combination of
any such methods of sale; or

 

● 

any other method
permitted pursuant to applicable law.

 

The
Selling Stockholders may also sell securities under Rule 144 or any
other exemption from registration under the Securities Act of 1933,
as amended (the “Securities Act”), if
available, rather than under this prospectus.

 

Broker-dealers
engaged by the Selling Stockholders may arrange for other
brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the Selling Stockholders (or, if any
broker-dealer acts as agent for the purchaser of securities, from
the purchaser) in amounts to be negotiated, but, except as set
forth in a supplement to this Prospectus, in the case of an agency
transaction not in excess of a customary brokerage commission in
compliance with FINRA Rule 2121; and in the case of a principal
transaction a markup or markdown in compliance with FINRA Rule
2121.

 

 

 

 

 

In
connection with the sale of the securities or interests therein,
the Selling Stockholders may enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn
engage in short sales of the securities in the course of hedging
the positions they assume. The Selling Stockholders may also sell
securities short and deliver these securities to close out their
short positions, or loan or pledge the securities to broker-dealers
that in turn may sell these securities. The Selling Stockholders
may also enter into option or other transactions with
broker-dealers or other financial institutions or create one or
more derivative securities which require the delivery to such
broker-dealer or other financial institution of securities offered
by this prospectus, which securities such broker-dealer or other
financial institution may resell pursuant to this prospectus (as
supplemented or amended to reflect such transaction).

 

The
Selling Stockholders and any broker-dealers or agents that are
involved in selling the securities may be deemed to be
“underwriters” within the meaning of the Securities Act
in connection with such sales. In such event, any commissions
received by such broker-dealers or agents and any profit on the
resale of the securities purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act.
Each Selling Stockholder has informed the Company that it does not
have any written or oral agreement or understanding, directly or
indirectly, with any person to distribute the
securities.

 

The
Company is required to pay certain fees and expenses incurred by
the Company incident to the registration of the securities. The
Company has agreed to indemnify the Selling Stockholders against
certain losses, claims, damages and liabilities, including
liabilities under the Securities Act.

 

We
agreed to keep this prospectus effective until the earlier of (i)
the date on which the securities may be resold by the Selling
Stockholders without registration and without regard to any volume
or manner-of-sale limitations by reason of Rule 144, without the
requirement for the Company to be in compliance with the current
public information under Rule 144 under the Securities Act or any
other rule of similar effect or (ii) all of the securities have
been sold pursuant to this prospectus or Rule 144 under the
Securities Act or any other rule of similar effect. The resale
securities will be sold only through registered or licensed brokers
or dealers if required under applicable state securities laws. In
addition, in certain states, the resale securities covered hereby
may not be sold unless they have been registered or qualified for
sale in the applicable state or an exemption from the registration
or qualification requirement is available and is complied
with.

 

Under
applicable rules and regulations under the Exchange Act, any person
engaged in the distribution of the resale securities may not
simultaneously engage in market making activities with respect to
the common stock for the applicable restricted period, as defined
in Regulation M, prior to the commencement of the distribution. In
addition, the Selling Stockholders will be subject to applicable
provisions of the Exchange Act and the rules and regulations
thereunder, including Regulation M, which may limit the timing of
purchases and sales of the common stock by the Selling Stockholders
or any other person. We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the
need to deliver a copy of this prospectus to each purchaser at or
prior to the time of the sale (including by compliance with Rule
172 under the Securities Act).

 

 

 

 

 

 

 

2

 

 
Annex B

 

SELLING SHAREHOLDERS

 

The
common stock being offered by the selling shareholders are those
previously issued to the selling shareholders, and those issuable
to the selling shareholders, upon exercise of the warrants. For
additional information regarding the issuances of those shares of
common stock and warrants, see “Private Placement of Shares
of Common Stock and Warrants” above. We are registering the
shares of common stock in order to permit the selling shareholders
to offer the shares for resale from time to time. Except for the
ownership of the shares of common stock and the warrants, the
selling shareholders have not had any material relationship with us
within the past three years.

 

The
table below lists the selling shareholders and other information
regarding the beneficial ownership of the shares of common stock by
each of the selling shareholders. The second column lists the
number of shares of common stock beneficially owned by each selling
shareholder, based on its ownership of the shares of common stock
and warrants, as of ________, 2020, assuming exercise of the
warrants held by the selling shareholders on that date, without
regard to any limitations on exercises.

 

The
third column lists the shares of common stock being offered by this
prospectus by the selling shareholders.

 

In
accordance with the terms of a registration rights agreement with
the selling shareholders, this prospectus generally covers the
resale of the sum of (i) the number of shares of common stock
issued to the selling shareholders in the “Private Placement
of Shares of Common Stock and Warrants” described above and
(ii) the maximum number of shares of common stock issuable upon
exercise of the related warrants, determined as if the outstanding
warrants were exercised in full as of the trading day immediately
preceding the date this registration statement was initially filed
with the SEC, each as of the trading day immediately preceding the
applicable date of determination and all subject to adjustment as
provided in the registration right agreement, without regard to any
limitations on the exercise of the warrants. The fourth column assumes the sale
of all of the shares offered by the selling shareholders pursuant
to this prospectus.

 

Under
the terms of the warrants, a selling shareholder may not exercise
the warrants to the extent such exercise would cause such selling
shareholder, together with its affiliates and attribution parties,
to beneficially own a number of shares of common stock which would
exceed 19.99% of our then outstanding common stock following such
exercise, excluding for purposes of such determination shares of
common stock issuable upon exercise of the warrants which have not
been exercised. The number of shares in the second column does not
reflect this limitation. The selling shareholders may sell all,
some or none of their shares in this offering. See "Plan of
Distribution."

 

 

 

 

 Annex B

 

	

Name of Selling Shareholder

 

	

Number of shares of

Common Stock Owned

Prior to Offering

 

	

Maximum Number of

shares of Common Stock

to be Sold Pursuant to this

Prospectus

 

	

Number of shares of

Common Stock Owned

After Offering

 

 

 

 

2

 

Annex
C

 

TENAX THERAPEUTICS, INC.

 

 

Selling Stockholder Notice and Questionnaire

 

The
undersigned beneficial owner of common stock (the
“Registrable
Securities”) of Tenax Therapeutics, Inc., a Delaware
corporation (the “Company”), understands
that the Company has filed or intends to file with the Securities
and Exchange Commission (the “Commission”) a
registration statement (the “Registration Statement”)
for the registration and resale under Rule 415 of the Securities
Act of 1933, as amended (the “Securities Act”), of the
Registrable Securities, in accordance with the terms of the
Registration Rights Agreement (the “Registration Rights
Agreement”) to which this document is annexed. A copy
of the Registration Rights Agreement is available from the Company
upon request at the address set forth below. All capitalized terms
not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

 

Certain
legal consequences arise from being named as a selling stockholder
in the Registration Statement and the related prospectus.
Accordingly, holders and beneficial owners of Registrable
Securities are advised to consult their own securities law counsel
regarding the consequences of being named or not being named as a
selling stockholder in the Registration Statement and the related
prospectus.

 

NOTICE

 

The
undersigned beneficial owner (the “Selling Stockholder”) of
Registrable Securities hereby elects to include the Registrable
Securities owned by it in the Registration Statement.

 

 

 

 

The
undersigned hereby provides the following information to the
Company and represents and warrants that such information is
accurate:

 

QUESTIONNAIRE

 

1. Name.

 

(a) 

Full Legal Name of
Selling Stockholder

 

	
 

	
 

 

(b) 

Full Legal Name of
Registered Holder (if not the same as (a) above) through which
Registrable Securities are held:

 

	
 

	
 

 

(c) 

Full Legal Name of
Natural Control Person (which means a natural person who directly
or indirectly alone or with others has power to vote or dispose of
the securities covered by this Questionnaire):

 

	
 

	
 

 

 

2.
Address for Notices to Selling Stockholder:

 

	
 

	
 

	
 

	

Telephone: 

	

Fax: 

	

Contact
Person: 

 

3.
Broker-Dealer Status:

 

(a) 

Are you a
broker-dealer?

 

Yes
☐                      

No
☐

 

(b) 

If
“yes” to Section 3(a), did you receive your Registrable
Securities as compensation for investment banking services to the
Company?

 

Yes
☐                      

No
☐

 

Note: 

If “no”
to Section 3(b), the Commission’s staff has indicated that
you should be identified as an underwriter in the Registration
Statement.

 

 

 

2

 

 

(c) 

Are you an
affiliate of a broker-dealer?

 

Yes
☐        

No
☐

 

(d) 

If you are an
affiliate of a broker-dealer, do you certify that you purchased the
Registrable Securities in the ordinary course of business, and at
the time of the purchase of the Registrable Securities to be
resold, you had no agreements or understandings, directly or
indirectly, with any person to distribute the Registrable
Securities?

 

Yes
☐                      

No
☐

 

Note: 

If “no”
to Section 3(d), the Commission’s staff has indicated that
you should be identified as an underwriter in the Registration
Statement.

 

4.
Beneficial Ownership of Securities of the Company Owned by the
Selling Stockholder.

 

Except as set forth below in this Item 4, the undersigned is not
the beneficial or registered owner of any securities of the Company
other than the securities issuable pursuant to the Purchase
Agreement.

 

(a) 

Type and Amount of
other securities beneficially owned by the Selling
Stockholder:

 

	
 

	
 

	
 

 

 

 

 

3

 

5.
Relationships with the Company:

 

Except as set forth below, neither the undersigned nor any of its
affiliates, officers, directors or principal equity holders (owners
of 5% of more of the equity securities of the undersigned) has held
any position or office or has had any other material relationship
with the Company (or its predecessors or affiliates) during the
past three years.

 

State any
exceptions here:

 

	
 

	
 

	
 

 

The
undersigned agrees to promptly notify the Company of any material
inaccuracies or changes in the information provided herein that may
occur subsequent to the date hereof at any time while the
Registration Statement remains effective; provided, that the
undersigned shall not be required to notify the Company of any
changes to the number of securities held or owned by the
undersigned or its affiliates.

 

By
signing below, the undersigned consents to the disclosure of the
information contained herein in its answers to Items 1 through 5
and the inclusion of such information in the Registration Statement
and the related prospectus and any
amendments or supplements thereto. The undersigned
understands that such information will be relied upon by the
Company in connection with the preparation or amendment of the
Registration Statement and the related prospectus and any
amendments or supplements thereto.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has
caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	

Date:

	
                                                         

	

Beneficial
Owner:                                   

	
 

	
 

	
 

	
 

	
 

	

By:

	
 

	
 

	

Name:                                 
      
   

	
 

	
 

	

Title:                                                   

 

PLEASE FAX A COPY (OR EMAIL A .PDF COPY) OF THE COMPLETED AND
EXECUTED NOTICE AND QUESTIONNAIRE TO:

 

 

 

 

 

4Exhibit 4.1

 

 

ENBRIDGE INC.

 

 

 

Seventh Supplemental

 

Indenture

 

Dated as of July 8, 2020

 

 

 

(Supplemental to Indenture Dated as of
February 25, 2005)

 

 

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Trustee

 

 

 

     

     

    

 

SEVENTH SUPPLEMENTAL INDENTURE, dated as of
July 8, 2020 (the “Seventh Supplemental Indenture”), between Enbridge Inc.,
a corporation duly incorporated under the Companies Ordinance of the Northwest Territories and continued and existing under
the Canada Business Corporations Act (herein called the “Company”), and DEUTSCHE BANK TRUST COMPANY AMERICAS,
a banking corporation duly organized and existing under the laws of the State of New York, as Trustee (herein called “Trustee”);

 

R E C I T A L S:

 

WHEREAS, the Company has heretofore executed
and delivered to DEUTSCHE BANK TRUST COMPANY AMERICAS, as trustee, an Indenture, dated as of February 25, 2005, as amended
and supplemented by the First Supplemental Indenture, dated as of March 1, 2012 (as the same may be amended or supplemented from
time to time, including by this Seventh Supplemental Indenture, the “Indenture”), providing for the issuance from time
to time of the Company’s unsecured debentures, notes or other evidences of indebtedness (herein and therein called the “Securities”),
to be issued in one or more series as provided in the Indenture;

 

WHEREAS, pursuant to the terms of the Indenture,
the Company desires to provide for the establishment of a new series of Securities under the Indenture, to be known as its 5.750%
Fixed-to-Fixed Rate Subordinated Notes Series 2020-A due 2080 (the “Notes”), the form and substance of such series
and the terms, provisions and conditions thereof to be as set forth in the Indenture and this Seventh Supplemental Indenture;

 

WHEREAS, this Seventh Supplemental Indenture
is being entered into pursuant to the provisions of Section 901(7) of the Indenture; and

 

WHEREAS, all things necessary to make this
Seventh Supplemental Indenture a valid agreement according to its terms have been done;

 

NOW, THEREFORE, THIS SEVENTH SUPPLEMENTAL
INDENTURE WITNESSETH:

 

The Company covenants and agrees with the
Trustee as follows:

 

ARTICLE
I

 

INTERPRETATION

 

		(i)	Definitions

 

In this Seventh Supplemental Indenture, unless there is something
in the subject matter or context inconsistent therewith:

 

“Additional Amounts” has the meaning ascribed
to such term in Section 2.5.1;

 

“Automatic Conversion” has the meaning ascribed
to such term in Section 4.1;

 

    -1-

     

    

 

“Automatic Conversion Event” means an event
giving rise to an Automatic Conversion, being the occurrence of any one of the following: (i) the making by the Company of a general
assignment for the benefit of its creditors or a proposal (or the filing of a notice of its intention to do so) under the Bankruptcy
and Insolvency Act (Canada) or the Companies’ Creditors Arrangement Act (Canada), (ii) any proceeding instituted
by the Company seeking to adjudicate it bankrupt or insolvent or, where the Company is insolvent, seeking liquidation, winding
up, dissolution, reorganization, arrangement, adjustment, protection, relief or compromise of its debts under any law relating
to bankruptcy or insolvency in Canada, or seeking the entry of an order for the appointment of a receiver, interim receiver, trustee
or other similar official for the property and assets of the Company or any substantial part of its property and assets in circumstances
where the Company is adjudged a bankrupt or insolvent, (iii) a receiver, interim receiver, trustee or other similar official is
appointed over the property and assets of the Company or for any substantial part of its property and assets by a court of competent
jurisdiction in circumstances where the Company is adjudged a bankrupt or insolvent under any law relating to bankruptcy or insolvency
in Canada, or (iv) any proceeding is instituted against the Company seeking to adjudicate it a bankrupt or insolvent, or where
the Company is insolvent, seeking liquidation, winding up, dissolution, reorganization, arrangement, adjustment, protection, relief
or compromise of its debts under any law relating to bankruptcy or insolvency in Canada, or seeking the entry of an order for the
appointment of a receiver, interim receiver, trustee or other similar official for the property and assets of the Company or any
substantial part of its property and assets in circumstances where the Company is adjudged a bankrupt or insolvent under any law
relating to bankruptcy or insolvency in Canada, and either such proceeding has not been stayed or dismissed within sixty (60) days
of the institution of any such proceeding or the actions sought in such proceedings occur (including the entry of an order for
relief against the Company or the appointment of a receiver, interim receiver, trustee, or other similar official for the Company’s
property and assets or for any substantial part of its property and assets);

 

“CAD” means the lawful currency of Canada.

 

“Calculation Agent” means any Person, which
may be the Company or any of the Company’s Affiliates, appointed by the Company from time to time to act as calculation agent
with respect to the Notes;

 

“Canadian Taxes” has the meaning ascribed
to such term in Section 2.5.1;

 

“Closing Date” means July 8, 2020;

 

“Code” means Sections 1471 through 1474 of
the U.S. Internal Revenue Code of 1986, as amended;

 

“Common Shares” means the common shares in
the capital of the Company;

 

“Conversion Preference Shares” means the
newly issued series of preference shares of the Company, designated as Preference Shares, Series 2020-A, to be issued to Holders
of Notes upon the occurrence of an Automatic Conversion Event;

 

“Conversion Time” has the meaning ascribed
to such term in Section 4.1;

 

    -2-

     

    

 

“DBRS” means DBRS Limited;

 

“Deferral Date” has the meaning ascribed
to such term in Section 5.1;

 

“Deferral Period” has the meaning ascribed
to such term in Section 5.1;

 

“Dividend Restricted Shares” has the meaning
ascribed to such term in Section 5.3;

 

“DTC” means the Depository Trust Company
or its nominee;

 

“Excluded Holder” has the meaning ascribed
to such term in Section 2.5.1;

 

“FATCA Withholding Tax” means any deduction
or withholding imposed or collected pursuant to the Code, any current or future regulations or official interpretations thereof,
any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices
adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of the Code (or any law
implementing such an intergovernmental agreement);

 

“Fitch” means Fitch Ratings, Inc.;

 

“Five-Year Treasury Rate” means, as of any
Reset Interest Determination Date, the average of the yields on actively traded U.S. Treasury securities adjusted to constant maturity,
for five-year maturities, for the most recent five Business Days appearing under the caption “Treasury Constant Maturities”
in the most recent H.15. If the Five-Year Treasury Rate cannot be determined pursuant to the method described in the preceding
sentence, the Calculation Agent, after consulting such sources as it deems comparable to any of the foregoing calculations, or
any such source as it deems reasonable from which to estimate the Five-Year Treasury Rate, will determine the Five-Year Treasury
Rate in its sole discretion, provided that if the Calculation Agent determines there is an industry-accepted successor Five-Year
Treasury Rate, then the Calculation Agent will use such successor rate. If the Calculation Agent has determined a substitute or
successor base rate in accordance with the foregoing, the Calculation Agent in its sole discretion may determine the Business Day
convention, the definition of Business Day and the Reset Interest Determination Date to be used and any other relevant methodology
for calculating such substitute or successor base rate, including any adjustment factor needed to make such substitute or successor
base rate comparable to the Five-Year Treasury Rate, in a manner that is consistent with industry-accepted practices for such substitute
or successor base rate;

 

“Governmental Authority” means any domestic
or foreign legislative, executive, judicial or administrative body or Person having or purporting to have jurisdiction in the relevant
circumstances;

 

“H.15” means the daily statistical release
designated as such, or any successor publication as determined by the Calculation Agent in its sole discretion, published by the
Board of Governors of the United States Federal Reserve System;

 

    -3-

     

    

 

“Holders” means the registered holders, from
time to time, of the Notes or, where the context requires, all of such holders;

 

“Indenture” has the meaning ascribed to such
term in the first recital to this supplemental indenture;

 

“Ineligible Person” means any Person whose
address is in, or whom the Company or its transfer agent has reason to believe is a resident of, any jurisdiction outside of Canada
and the United States of America to the extent that: (i) the issuance or delivery by the Company to such Person, upon an Automatic
Conversion, of Conversion Preference Shares, would require the Company to take any action to comply with securities or analogous
laws of such jurisdiction; or (ii) withholding tax would be applicable in connection with the delivery to such Person of Conversion
Preference Shares upon an Automatic Conversion;

 

“Initial Interest Reset Date” means July
15, 2030;

 

“Interest Payment Date” means January 15
and July 15 (other than July 15, 2020) of each year during which any Notes are outstanding, and the Maturity Date;

 

“Interest Reset Period” means the period
from and including the Initial Interest Reset Date to, but not including, the next following Interest Reset Date and thereafter
each period from and including each Interest Reset Date to, but not including, the next following Interest Reset Date;

 

“Interest Reset Date” means the Initial Interest
Reset Date and each date falling on the five-year anniversary of the preceding Interest Reset Date;

 

“Maturity Date” means July 15, 2080;

 

“Moody’s” means Moody’s Investors
Service, Inc.;

 

“most recent H.15” means the H.15 published
closest in time but prior to the close of business on the applicable Reset Interest Determination Date;

 

“Notes” means the $1,000,000,000 aggregate
principal amount of 5.750% Fixed-to-Fixed Rate Subordinated Notes Series 2020-A due 2080 issued by the Company hereunder;

 

“Parity Notes” has the meaning ascribed to
such term in Section 5.3;

 

“Person” includes any individual, corporation,
limited or unlimited liability company, general or limited partnership, association, trust, unincorporated organization, joint
venture and Governmental Authority;

 

“Rating Event” means Moody’s,
S&P, DBRS or Fitch that then publishes a rating for the Company (a “rating agency”) amends, clarifies or
changes the criteria it uses to assign equity credit to securities such as the Notes, which amendment, clarification or
change results in (a) the shortening of the length of time the Notes are assigned a particular level of equity credit by that
rating agency as compared to the length of time they would have been assigned that level of equity credit by that rating
agency or its predecessor on the initial issuance of the Notes; or (b) the lowering of the equity credit (including up
to a lesser amount) assigned to the Notes by that rating agency compared to the equity credit assigned by that rating agency
or its predecessor on the initial issuance of the Notes;

 

    -4-

     

    

 

“Reset Interest Determination Date” means,
in respect of any Interest Reset Period, the day falling two Business Days prior to the beginning of such Interest Reset Period.

 

“Senior Creditor” means a holder or holders
of Senior Indebtedness and includes any representative or representatives or trustee or trustees of any such holder and such other
lenders providing advances to the Company pursuant to Senior Indebtedness;

 

“Senior Indebtedness” means obligations (other
than non-recourse obligations, the Notes or any other obligations specifically designated as being subordinate in right of payment
to Senior Indebtedness) of, or guaranteed or assumed by, the Company for borrowed money or evidenced by bonds, debentures or notes
or obligations of the Company for or in respect of bankers’ acceptances (including the face amount thereof), letters of credit
and letters of guarantee (including all reimbursement obligations in respect of each of the foregoing) or other similar instruments,
and amendments, renewals, extensions, modifications and refundings of any such indebtedness or obligation;

 

“S&P” means Standard & Poor’s
Rating Services, a division of The McGraw-Hill Companies, Inc.;

 

“Tax Event” means the Company has
received an opinion of independent counsel of a nationally recognized law firm in Canada or the United States experienced in
such matters (who may be counsel to the Company) to the effect that, as a result of, (i) any amendment to, clarification of,
or change (including any announced prospective change) in, the laws, or any regulations thereunder, or any application or
interpretation thereof, of Canada or the United States or any political subdivision or taxing authority thereof or therein,
affecting taxation; (ii) any judicial decision, administrative pronouncement, published or private ruling, regulatory
procedure, rule, notice, announcement, assessment or reassessment (including any notice or announcement of intent to adopt or
issue such decision, pronouncement, ruling, procedure, rule, notice, announcement, assessment or reassessment) (collectively,
an “Administrative Action”); or (iii) any amendment to, clarification of, or change in, the official
position with respect to or the interpretation of any Administrative Action or any interpretation or pronouncement that
provides for a position with respect to such Administrative Action that differs from the theretofore generally accepted
position, in each of case (i), (ii) or (iii), by any legislative body, court, governmental authority or agency, regulatory
body or taxing authority, irrespective of the manner in which such amendment, clarification, change, Administrative Action,
interpretation or pronouncement is made known, which amendment, clarification, change or Administrative Action is effective
or which interpretation, pronouncement or Administrative Action is announced on or after the date of issue of the Notes,
there is more than an insubstantial risk (assuming any proposed or announced amendment, clarification, change,
interpretation, pronouncement or Administrative Action is effective and applicable) that (i) the Company is, or may be,
subject to more than a de minimis amount of additional taxes, duties or other governmental charges or civil
liabilities because the treatment of any of its items of income, taxable income, expense, taxable capital or taxable paid-up
capital with respect to the Notes (including the treatment by the Company of interest on the Notes), as or as would be
reflected in any tax return or form filed, to be filed, or that otherwise could have been filed, will not be respected by a
taxing authority or (ii) the Company is, or may be, obligated to pay Additional Amounts; and

 

    -5-

     

    

 

“this supplemental indenture”, “hereto”,
 “hereby”, “hereunder”, “hereof”, “herein” and similar
expressions refer to this Seventh Supplemental Indenture and not to any particular article, section, subdivision or other portion
hereof.

 

Words importing the singular include the plural and vice versa
and words importing the masculine gender include the feminine gender and vice versa.

 

1.2             
Interpretation Not Affected By Headings, etc.

 

The division of this Seventh Supplemental Indenture into Articles
and Sections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation
of this Seventh Supplemental Indenture.

 

1.3             
Incorporation of Certain Definitions

 

All terms contained in this Seventh Supplemental Indenture which
are defined in the Indenture, as supplemented and amended to the date hereof, shall, for all purposes hereof, have the meanings
given to such terms in the Indenture, as so supplemented and amended, unless otherwise defined herein or unless the context otherwise
specifies or requires.

 

ARTICLE
2

 

THE NOTES

 

2.1             
No Limitation on Issue

 

The aggregate principal amount of the Notes that may be issued
and authenticated hereunder shall be unlimited.

 

2.2             
Terms of Notes

 

2.2.1           
The Notes shall be dated as of the Closing Date, regardless of their actual date
of issue, and shall mature on the Maturity Date.

 

2.2.2            The
Notes will bear interest (i) from, and including, the Closing Date to, but not including, the Initial Interest Reset Date at
the rate of 5.750% per annum and (ii) from and including the Initial Interest Reset Date, during each Interest Reset Period,
at a rate per annum equal to the Five-Year Treasury Rate as of the most recent Reset Interest Determination Date, plus: (a)
for the period from, and including, the Initial Interest Reset Date to, but not including, July 15, 2050, 5.314% and (b) for
the period from, and including, July 15, 2050 to, but not including, the Maturity Date, 6.064%, in each case, to be reset on
each Interest Reset Date. Interest on the Notes will be payable semi-annually in arrears on each Interest Payment Date,
commencing on January 15, 2021, subject to deferral as set forth in Article 5. The applicable interest rate for each
Interest Reset Period will be determined by the Calculation Agent as of the applicable Reset Interest Determination Date.
Subject to Article 5, interest as aforesaid shall be payable after as well as before default, with interest on overdue
interest, in like money, at the same rates and on the same dates.

 

    -6-

     

    

 

2.2.3           
Interest on the Notes will be calculated on the basis of a 360-day year consisting
of twelve 30-day months and, for any period shorter than six months, on the basis of the actual number of days elapsed per 30-day
month. For the purposes of disclosure under the Interest Act (Canada), and without affecting the interest payable on the
Notes, whenever the interest rate on the Notes is to be calculated on the basis of a period of less than a calendar year, the yearly
interest rate equivalent for such interest rate will be the interest rate multiplied by the actual number of days in the relevant
calendar year and divided by the number of days used in calculating the specified interest rate.

 

2.2.4           
If any Interest Payment Date falls on a day that is not a Business Day, the Interest
Payment Date will be postponed until the next Business Day, and no further interest or other sums will accrue in respect of such
postponement.

 

2.2.5           
Interest payments will be made to Holders in whose names the Notes are registered
at the close of business on January 1 and July 1 (in each case, whether or not a Business Day), as the case may be, immediately
preceding the relevant Interest Payment Date.

 

2.3             
Form of Notes

 

2.3.1           
The Notes shall be issued only as fully registered Notes in minimum denominations
of $2,000 and integral multiples of $1,000 in excess thereof.

 

2.3.2           
The Notes and the certificate of authentication of the Trustee endorsed thereon shall
be in the English language and shall be substantially in the form set out in Schedule A hereto, with such appropriate additions,
deletions, substitutions and variations as the Trustee may approve and shall bear such distinguishing letters and numbers as the
Trustee may approve, such approval of the Trustee to be conclusively evidenced by its authentication of the Notes.

 

2.3.3           
The Notes may be engraved, printed or lithographed, or partly in one form and partly
in another, as the Company may determine.

 

2.4             
Calculation Agent

 

2.4.1           
Unless the Company has redeemed all of the outstanding Notes as of the Initial Interest
Reset Date, the Company shall appoint a Calculation Agent with respect to the Notes prior to the Reset Interest Determination Date
preceding the Initial Interest Reset Date.

 

2.4.2           
The Calculation Agent will determine the applicable interest rate for each Interest
Reset Period as of the applicable Reset Interest Determination Date. Promptly upon such determination, the Calculation Agent, if
other than the Company or an Affiliate of the Company, will notify the Company of the interest rate for the relevant Interest Reset
Period and the Company will then promptly notify the Trustee, if other than the Calculation Agent, of such interest rate. 

 

    -7-

     

    

 

2.4.3            The Calculation Agent’s determination of any interest rate, and its calculation
of the amount of interest for any Interest Reset Period beginning on or after the Initial Interest Reset Date: (i) will be on
file at the Company’s principal offices, (ii) will be made available to any Holder upon request, (iii) will be conclusive
and binding absent manifest error, (iv) may be made in the Calculation Agent’s sole discretion and (v) notwithstanding anything
to the contrary in the documentation relating to the Notes, will become effective without consent from any other person or entity.

 

2.5             
Additional Amounts

 

2.5.1          
All payments made by or on account of any obligation of the Company under or with
respect to the Notes shall be made free and clear of and without withholding or deduction for, or on account of, any present or
future tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest and other liabilities related
thereto) imposed or levied by or on behalf of the Government of Canada or any province or territory thereof or by any authority
or agency therein or thereof having power to tax (hereinafter, “Canadian Taxes”), unless the Company is required
to withhold or deduct Canadian Taxes by law or by the interpretation or administration thereof by the relevant government authority
or agency. If the Company is so required to withhold or deduct any amount for or on account of Canadian Taxes from any payment
made under or with respect to the Notes, the Company shall pay as additional interest such additional amounts (“Additional
Amounts”) as may be necessary so that the net amount received by each Holder (including Additional Amounts) after such
withholding or deduction shall not be less than the amount the Holder would have received if such Canadian Taxes had not been withheld
or deducted; provided, however, that no Additional Amounts shall be payable with respect to a payment made to a Holder (an “Excluded
Holder”) in respect of a beneficial owner (i) with which the Company does not deal at arm’s length (for purposes
of the Income Tax Act (Canada)) at the time of the making of such payment, (ii) which is subject to such Canadian Taxes
by reason of such Holder’s failure to comply with any certification, identification, information, documentation or other
reporting requirement if compliance is required by law, regulation, administrative practice or an applicable treaty as a precondition
to exemption from, or a reduction in, the rate of deduction or withholding of, such Canadian Taxes, (iii) where all or any portion
of the amount paid to such Holder is deemed to be a dividend paid to such Holder pursuant to subsection 214(16) of the Income
Tax Act (Canada), or (iv) which is subject to such Canadian Taxes by reason of its carrying on business in or being connected
with Canada or any province or territory thereof otherwise than by the mere holding of Notes or the receipt of payments thereunder.
The Company shall make such withholding or deduction and remit the full amount deducted or withheld to the relevant authority as
and when required under applicable law.

 

Notwithstanding the foregoing, all payments
shall be made net of any FATCA Withholding Tax, and no additional amounts will be payable as a result of any such FATCA Withholding
Tax.

 

2.5.2           
If a Holder has received a refund or credit for any Canadian Taxes with respect to
which the Company has paid Additional Amounts pursuant to this Section 2.5, such Holder shall pay over such refund to the Company
(but only to the extent of such Additional Amounts), net of all out-of-pocket expenses of such Holder, together with any interest
paid by the relevant tax authority in respect of such refund.

 

    -8-

     

    

 

2.5.3          
  If Additional Amounts are required to be paid under this Section 2.5 as a result
of a Tax Event, the Company may elect to redeem outstanding Notes pursuant to Section 3.3.

 

2.6             
Tax Treatment

 

The Company
intends to treat the Notes as equity of the Company for U.S. federal income tax purposes. Holders of the Notes are required, in
the absence of a statutory, regulatory, administrative or judicial ruling to the contrary, to treat the Notes for U.S. federal
income tax purposes in accordance with such characterization.

 

ARTICLE
3

 

REDEMPTION OF THE NOTES

 

3.1             
Redemption of Notes at the Option of the Company

 

The Company may, at its option, on giving not more than 60 days
nor less than 30 days’ prior notice to the Holders thereof, redeem the Notes, in whole at any time or in part from time to
time on any day in the period commencing on the date falling three months prior to any Interest Reset Date and ending on (and including)
any Interest Reset Date, without the consent of the Holders, at a redemption price per $1,000 principal amount of the Notes equal
to 100% of the principal amount thereof, together with accrued and unpaid interest to, but excluding, the date fixed for redemption.

 

3.2             
Partial Redemption of Notes

 

3.2.1           
If less than all the Notes are to be redeemed pursuant to Section 3.1, the Company
shall, at least 15 days prior to the date that notice of redemption is given, notify the Trustee by Company Order stating the Company’s
intention to redeem the aggregate principal amount of the Notes to be redeemed. The Notes to be redeemed shall be selected by the
Trustee, if the Notes are in Global Form, in accordance with the procedures of DTC and if the Notes are certificated, on a pro
rata basis, disregarding fractions, according to the principal amount of the Notes registered in the respective names of each Holder,
or in such other manner as the Trustee may consider equitable, provided that such selection shall be proportionate (to the nearest
minimum authorized denomination for the Notes established pursuant to Section 2.3).

 

3.2.2           
If the Notes in denominations in excess of the minimum authorized denomination for
the Notes are selected and called for redemption in part only (such part being that minimum authorized denomination or an integral
multiple thereof) then, unless the context otherwise requires, references to the Notes in this Article 3 shall be deemed to include
any such part of the principal amount of the Notes which shall have been so selected and called for redemption. The Holder of any
Notes called for redemption in part only, upon surrender of such Notes for payment, shall be entitled to receive, without expense
to such Holder, new Notes for the unredeemed part of the Notes so surrendered, and the Company shall execute and the Trustee shall
authenticate and deliver, at the expense of the Company, such new Notes having the same terms as are set out herein upon receipt
from the Trustee or the Paying Agent of the Notes so surrendered.

 

    -9-

     

    

 

3.3             
Early Redemption upon a Tax Event

 

Within 90 days following the occurrence of a Tax Event, the
Company may, at its option, on giving not more than 60 days nor less than 30 days’ prior notice to the Holders thereof, redeem
all (but not less than all) of the Notes without the consent of the Holders. The redemption price per $1,000 principal amount of
the Notes shall be equal to 100% of the principal amount thereof, together with accrued and unpaid interest to, but excluding,
the date fixed for redemption.

 

3.4             
Early Redemption upon a Rating Event

 

Within 90 days following the occurrence of a Rating Event, the
Company may, at its option, on giving not more than 60 days nor less than 30 days’ prior notice to the Holders thereof, redeem
all (but not less than all) of the Notes without the consent of the Holders. The redemption price per $1,000 principal amount of
the Notes shall be equal to 102% of the principal amount thereof, together with accrued and unpaid interest to, but excluding,
the date fixed for redemption.

 

3.5             
Notice of Redemption

 

Notice of any intention to redeem any Notes shall be given by
or on behalf of the Company to the Holders of the Notes which are to be redeemed, not more than 60 days and not less than 30 days
prior to the date fixed for redemption, in the manner provided in the Indenture. The notice of redemption shall, unless all the
Notes then outstanding are to be redeemed, specify the distinguishing letters and numbers of the Notes which are to be redeemed
and, if the Notes are to be redeemed in part only, shall specify that part of the principal amount thereof to be redeemed, and
shall specify the redemption date, the redemption price and places of payment and shall state that all interest on the Notes called
for redemption shall cease from and after such redemption date.

 

3.6             
Cancellation of the Notes

 

All Notes redeemed under this Article 3 shall forthwith be delivered
to the Trustee and shall be cancelled by it and will not be reissued or resold, and except as provided in subsection 3.2.2,
no Notes shall be issued in substitution therefor.

 

ARTICLE
4

 

AUTOMATIC CONVERSION

 

4.1             
Automatic Conversion

 

Upon an Automatic Conversion Event, as
of the Conversion Time all Notes shall be automatically converted (the “Automatic Conversion”), without
the consent of the Holders, into a newly issued series of fully paid Conversion Preference Shares with a stated issue price
of $1,000 per share, for each $1,000 principal amount of Notes held immediately prior to the Automatic Conversion, together
with such number of Conversion Preference Shares (including fractional shares, where applicable) calculated by dividing the
amount of accrued and unpaid interest on each $1,000 principal amount of Notes from the immediately preceding Interest
Payment Date to, but excluding, the date of the Automatic Conversion Event by $1,000. The Automatic Conversion shall occur
upon an Automatic Conversion Event (the “Conversion Time”). At the Conversion Time all Notes shall be
deemed to be immediately and automatically surrendered and cancelled without need for further action by the Holders who shall
thereupon automatically cease to be Holders thereof and all rights of any such Holder as a debtholder of the Company shall
automatically cease. For greater certainty, any Notes purchased or redeemed by the Company prior to the Conversion Time shall
be deemed not to be outstanding, and shall not be subject to the Automatic Conversion. Notwithstanding
anything contained herein to the contrary, the Trustee shall not have any responsibility to determine if and when an
Automatic Conversion Event has occurred. The Company shall provide written notification of the occurrence of an Automatic
Conversion Event upon which the Trustee shall be able to conclusively rely. The Company shall make all the calculations
required to be made pursuant to an Automatic Conversion.

 

    -10-

     

    

 

4.2             
Right Not to Deliver the Conversion Preference Shares

 

Upon an Automatic Conversion of the Notes, the Company reserves
the right not to issue some or all, as applicable, of the Conversion Preference Shares to Ineligible Persons. In such circumstances,
the Company will hold all Conversion Preference Shares that would otherwise be delivered to Ineligible Persons, as agent for Ineligible
Persons, and will attempt to facilitate the sale of such Conversion Preference Shares through a registered dealer retained by the
Company for the purpose of effecting the sale (to parties other than the Company, its affiliates or other Ineligible Persons) on
behalf of such Ineligible Persons. Such sales, if any, may be made at any time and any price. The Company will not be subject to
any liability for failing to sell Conversion Preference Shares on behalf of any such Ineligible Persons or at any particular price
on any particular day. The net proceeds received by the Company from the sale of any such Conversion Preference Shares will be
divided among the Ineligible Persons in proportion to the number of Conversion Preference Shares that would otherwise have been
delivered to them, after deducting the costs of sale and applicable taxes, if any. The Company will make payment of the aggregate
net proceeds to the Clearing Agency (if the Notes are then held in the book-entry only system) or to the registrar and transfer
agent (in all other cases) for distribution to such Ineligible Persons in accordance with the Clearing Agency Procedures or otherwise.

 

As a precondition to the delivery of any certificate
or other evidence of issuance representing any Conversion Preference Shares or related rights following an Automatic Conversion,
the Company may obtain from any Holder (and persons holding Notes represented by such Holder) a declaration, in form and substance
satisfactory to the Company, confirming compliance with any applicable regulatory requirements to establish that such Holder is
not, and does not represent, an Ineligible Person.

 

ARTICLE
5

 

DEFERRAL RIGHT

 

5.1             
Deferral Right

 

So long as no Event of Default has occurred and is
continuing, the Company may elect, at its sole option, at any date other than an Interest Payment Date (a “Deferral
Date”), to defer the interest payable on the Notes on one or more occasions for up to five consecutive years (a
 “Deferral Period”). Such deferral will not constitute an Event of Default or any other breach under the
Indenture and the Notes. Deferred interest will accrue, compounding on each subsequent Interest Payment Date, until paid. A
Deferral Period terminates on any Interest Payment Date where the Company pays all accrued and unpaid interest on such date.
No Deferral Period may extend beyond the Maturity Date.

 

    -11-

     

    

 

The Company will give the Trustee and the Holders of the Notes
written notice of its election to commence or continue a Deferral Period at least 10 and not more than 60 days before the next
Interest Payment Date.

 

5.2             
No Limit

 

There shall be no limit on the number of Deferral Events that
may occur.

 

5.3             
Dividend Stopper Undertaking

 

Unless the Company has paid all accrued and payable interest
on the Notes, the Company will not:

 

		(i)	declare any dividends on the Dividend Restricted Shares or pay any interest on any Parity Notes
(other than stock dividends on Dividend Restricted Shares);

 

		(ii)	redeem, purchase or otherwise retire any Dividend Restricted Shares or Parity Notes (except
(i) with respect to Dividend Restricted Shares, out of the net cash proceeds of a substantially concurrent issue of Dividend Restricted
Shares or (ii) pursuant to any purchase obligation, sinking fund, retraction privilege or mandatory redemption provisions attaching
to any series of Dividend Restricted Shares); or

 

		(iii)	make any payment to holders of any of the Dividend Restricted Shares or any of the Parity Notes
in respect of dividends not declared or paid on such Dividend Restricted Shares or interest not paid on such Parity Notes, respectively.

 

“Dividend Restricted Shares” means, collectively,
the preference shares of the Company (including the Conversion Preference Shares) and the Common Shares of the Company.

 

“Parity Notes” means any class or series
of Company indebtedness currently outstanding or hereafter created which ranks on a parity with the Notes (prior to any Automatic
Conversion) as to distributions upon liquidation, dissolution or winding-up, and includes the Company’s $750,000,000 6.00%
Fixed-to-Floating Rate Subordinated Notes Series 2016-A due 2077, the Company’s $1,000,000,000 5.50% Fixed-to-Floating Rate
Subordinated Notes Series 2017-A due 2077, the Company’s CAD$1,650,000,000 5.375% Fixed-to-Floating Rate Subordinated Notes
Series 2017-B due 2077, the Company’s $850,000,000 6.250% Fixed-to-Floating Rate Subordinated Notes Series 2018-A due 2078,
the Company’s $600,000,000 6.375% Fixed-to-Floating Rate Subordinated Notes Series 2018-B due 2078, and the Company’s
CAD$750,000,000 6.625% Fixed-to-Floating Rate Subordinated Notes Series 2018-C due 2078.

 

    -12-

     

    

 

ARTICLE
6

 

ADDITIONAL COVENANTS

 

6.1             
Additional Covenants

 

The Company covenants for the benefit of Holders that for so
long as the Conversion Preference Shares issuable upon the Automatic Conversion are issuable or outstanding, the Company will not
create or issue any preference shares which, in the event of insolvency or winding up of the Company, would rank in right of payment
in priority to such Conversion Preference Shares.

 

ARTICLE
7

 

SUBORDINATION OF NOTES

 

7.1             
Notes Subordinated to Senior Indebtedness

 

7.1.1          
The Company covenants and agrees, and each Holder of Notes, by the acceptance thereof,
likewise covenants and agrees, that the indebtedness represented by the Notes and the payment of the principal of and interest
on each and all of the Notes is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right
of payment to the prior payment in full of Senior Indebtedness. 

 

7.1.2          
In the event (a) of any insolvency or bankruptcy proceedings or any receivership,
liquidation, reorganization or other similar proceedings in respect of the Company or a substantial part of its property, or of
any proceedings for liquidation, dissolution or other winding up of the Company, whether or not involving insolvency or bankruptcy,
or (b) subject to the provisions of Section 7.2 that (i) a default shall have occurred with respect to the payment
of principal of or interest on or other monetary amounts due and payable on any Senior Indebtedness, or (ii) there shall have
occurred an event of default (other than a default in the payment of principal or interest or other monetary amounts due and payable)
in respect of any Senior Indebtedness, as defined therein or in the instrument under which the same is outstanding, permitting
the holder or holders thereof to accelerate the maturity thereof (with notice or lapse of time, or both), and such event of default
shall have continued beyond the period of grace, if any, in respect thereof, and, in the cases of subclauses (i) and (ii) of
this clause (b), such default or event of default shall not have been cured or waived or shall not have ceased to exist, or (c) that
the principal of and accrued interest on the Notes of any Series shall have been declared due and payable pursuant to Section 502
of the Indenture and such declaration shall not have been rescinded and annulled as provided therein, then: 

 

    -13-

     

    

 

7.1.2.1 the holders of all Senior Indebtedness shall
first be entitled to receive payment of the full amount due thereon, or provision shall be made for such payment in money or money’s
worth, before the Holders of any of the Notes are entitled to receive a payment on account of the principal of or interest on the
indebtedness evidenced by the Notes, including, without limitation, any payments made pursuant to any redemption or purchase for
cancellation;

 

7.1.2.2 any payment by, or distribution of assets
of, the Company of any kind or character, whether in cash, property or securities, to which the Holders of any of the Notes or
the Trustee would be entitled except for the provisions of this Article shall be paid or delivered by the person making such payment
or distribution, whether a trustee in bankruptcy, a receiver, receiver and manager or liquidating trustee or otherwise, directly
to the holders of such Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture
under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate
amounts remaining unpaid on account of such Senior Indebtedness held or represented by each, to the extent necessary to make payment
in full of all Senior Indebtedness remaining unpaid after giving effect to any concurrent payment or distribution (or provision
therefor) to the holders of such Senior Indebtedness, before any payment or distribution is made to the holders of the indebtedness
evidenced by the Notes or to the Trustee under this instrument; and

 

7.1.2.3 in the event that, notwithstanding the foregoing,
any payment by, or distribution of assets of, the Company of any kind or character, whether in cash, property or securities, in
respect of principal of or interest on the Notes or in connection with any repurchase by the Company of the Notes, shall be received
by the Trustee or the Holders of any of the Notes before all Senior Indebtedness is paid in full, or provision made for such payment
in money or money’s worth, such payment or distribution in respect of principal of or interest on the Notes or in connection
with any repurchase by the Company of the Notes shall be paid over to the holders of such Senior Indebtedness or their representative
or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any such Senior Indebtedness
may have been issued, ratably as aforesaid, for application to the payment of all Senior Indebtedness remaining unpaid until all
such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution (or provision
therefor) to the holders of such Senior Indebtedness.

 

7.2           
Disputes with Holders of Certain Senior Indebtedness

 

Any failure by the Company to make any payment on or perform
any other obligation under Senior Indebtedness, other than any indebtedness incurred by the Company or assumed or guaranteed, directly
or indirectly, by the Company for money borrowed (or any deferral, renewal, extension or refunding thereof) or any indebtedness
or obligation as to which the provisions of this Section shall have been waived by the Company in the instrument or instruments
by which the Company incurred, assumed, guaranteed or otherwise created such indebtedness or obligation, shall not be deemed a
default or event of default under Section 7.1.2(b) if (a) the Company shall be disputing its obligation to make such payment
or perform such obligation and (b) either (i) no final judgment relating to such dispute shall have been issued against the Company
which is in full force and effect and is not subject to further review, including a judgment that has become final by reason of
the expiration of the time within which a party may seek further appeal or review, and (ii) in the event of a judgment that is
subject to further review or appeal has been issued, the Company shall in good faith be prosecuting an appeal or other proceeding
for review and a stay of execution shall have been obtained pending such appeal or review.

 

    -14-

     

    

 

7.3             
Subrogation

 

Subject to the payment in full of all Senior Indebtedness, the
Holders of the Notes shall be subrogated (equally and ratably with the holders of all obligations of the Company which by their
express terms are subordinated to Senior Indebtedness of the Company to the same extent as the Notes are subordinated and which
are entitled to like rights of subrogation) to the rights of the holders of Senior Indebtedness to receive payments or distributions
of cash, property or securities of the Company applicable to the Senior Indebtedness until all amounts owing on the Notes shall
be paid in full, and as between the Company, its creditors other than holders of such Senior Indebtedness and the Holders, no such
payment or distribution made to the holders of Senior Indebtedness by virtue of this Article that otherwise would have been made
to the Holders shall be deemed to be a payment by the Company on account of such Senior Indebtedness, it being understood that
the provisions of this Article are and are intended solely for the purpose of defining the relative rights of the Holders, on the
one hand, and the holders of Senior Indebtedness, on the other hand.

 

7.4             
Obligation of Company Unconditional

 

7.4.1           
Nothing contained in this Article or elsewhere in this Indenture or in the Notes
is intended to or shall impair, as among the Company, its creditors other than the holders of Senior Indebtedness and the Holders,
the obligation of the Company, which is absolute and unconditional, to pay to the Holders the principal of and interest on the
Notes as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative
rights of the Holders and creditors of the Company other than the holders of Senior Indebtedness, nor shall anything herein or
therein prevent the Trustee or any Holder from exercising all remedies otherwise permitted by applicable law upon default under
this Indenture, subject to the rights, if any, under this Article of the holders of Senior Indebtedness in respect of cash, property
or securities of the Company received upon the exercise of any such remedy. 

 

7.4.2          
Upon payment or distribution of assets of the Company referred to in this Article,
the Trustee and the Holders shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which
any such dissolution, winding up, liquidation or reorganization proceeding affecting the affairs of the Company is pending or upon
a certificate of the trustee in bankruptcy, receiver, receiver and manager, assignee for the benefit of creditors, liquidating
trustee or agent or other person making any payment or distribution, delivered to the Trustee or to the Holders, for the purpose
of ascertaining the persons entitled to participate in such payment or distribution, the holders of the Senior Indebtedness and
other indebtedness of the Company, the amount thereof or payable thereon, the amount paid or distributed thereon and all other
facts pertinent thereto or to this Article. 

 

7.5             
Payments on Notes Permitted

 

Nothing contained in this Article or elsewhere in this Indenture
or in the Notes shall affect the obligations of the Company to make, or prevent the Company from making, payment of the principal
of or interest on the Notes in accordance with the provisions hereof and thereof, except as otherwise provided in this Article.

 

    -15-

     

    

 

7.6             
 Effectuation of Subordination by Trustee

 

Each Holder by its acceptance thereof authorizes and directs
the Trustee on its behalf to take such action as may be necessary or appropriate to effect the subordination as provided in this
Article and appoints the Trustee as its attorney-in-fact for any and all such purposes. This appointment shall be irrevocable.
Upon request of the Company, and upon being furnished a certificate of the Company stating that one or more named Persons are Senior
Creditors and specifying the amount and nature of the Senior Indebtedness of such Senior Creditor, the Trustee shall enter into
a written agreement or agreements with the Company and the Persons named in such certificate of the Company providing that such
Persons are entitled to all the rights and benefits of this Article as Senior Creditors and for such other matters, such as an
agreement not to amend the provisions of this Article and the definitions used herein without the consent of such Senior Creditors,
as the Senior Creditors may reasonably request. Such agreement shall be conclusive evidence that the indebtedness specified therein
is Senior Indebtedness; however, nothing herein shall impair the rights of any Senior Creditor who has not entered into such an
agreement.

 

7.7             
Knowledge of Trustee

 

Notwithstanding the provisions of this Article or any other
provisions of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts that would prohibit
the making of any payment of moneys to or by the Trustee, or the taking of any other action by the Trustee, unless and until the
Trustee shall have received written notice thereof mailed or delivered to the Trustee from the Company, any Holder, any paying
agent or the holder or representative of any class of Senior Indebtedness; provided that if at least three Business Days
prior to the date upon which by the terms hereof any such moneys may become payable for any purpose (including, without limitation,
the payment of the principal of or interest on any Note) the Trustee shall not have received with respect to such moneys the notice
provided for in this Section, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power
and authority to receive such moneys and to apply the same to the purpose for which they were received and shall not be affected
by any notice to the contrary that may be received by it within three Business Days prior to or on or after such date.

 

7.8             
Trustee May Hold Senior Indebtedness

 

The Trustee shall be entitled to all the rights set forth in
this Article with respect to any Senior Indebtedness at the time held by it, to the same extent as any other holder of Senior Indebtedness,
and nothing in this Indenture shall deprive the Trustee of any of its rights as such holder.

 

7.9             
Rights of Holders of Senior Indebtedness Not Impaired

 

7.9.1           
No right of any present or future holder of any Senior Indebtedness to enforce the
subordination herein shall at any time or in any way be prejudiced or impaired by any act or failure to act on the part of the
Company or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge
thereof any such holder may have or be otherwise charged with. 

 

7.9.2          
 With respect to the holders of Senior Indebtedness, (i) the duties and obligations
of the Trustee shall be determined solely by the express provisions of this Indenture, (ii) the Trustee shall not be liable except
for the performance of such duties and obligations as are specifically set forth in this Indenture, (iii) no implied covenants
or obligations shall be read into this Indenture against the Trustee and (iv) the Trustee shall not be deemed to be a fiduciary
as to such holders.

 

    -16-

     

    

 

7.10          
Article Applicable to Paying Agents

 

In case at any time any paying agent other than the Trustee
shall have been appointed by the Company and be then acting hereunder, the term
 “Trustee” as used in this Article shall in such case (unless the context shall require otherwise) be construed
as extending to and including such paying agent within its meaning as fully for all intents and purposes as if such paying agent
were named in this Article in addition to or in place of the Trustee; provided, however, that Sections 7.7 and 7.8
shall not apply to the Company if it acts as its own paying agent.

 

7.11          
Trustee; Compensation Not Prejudiced

 

Nothing in this Article shall apply to claims of, or payments
to, the Trustee pursuant to Section 607 of the Indenture.

 

ARTICLE
8 

 

EVENTS
OF DEFAULT

 

8.1             
Events of Default

 

Solely with respect to the Securities (and not with respect
to any other securities issued or outstanding under the Indenture), for so long as any of the Securities remain outstanding, “Event
of Default” means any one of the following events (whatever the reason for such Event of Default and whether it shall
be occasioned by provisions of Article 7 of this Seventh Supplemental Indenture or be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative
or governmental body):

 

		(i)	default in the payment of any interest upon the Notes when it becomes due and payable, and
continuance of such default for a period of 30 days (subject to the Company’s right, at its sole option, to defer interest
payments as provided in Article 5 of this Seventh Supplemental Indenture); or

 

		(ii)	default in the payment of the principal of or any premium, if any, when due and payable on
the Notes.

 

If an Event of Default has occurred and
is continuing, and the Notes have not already been automatically converted into Conversion Preference Shares, then the
Company shall be deemed to be in default under the Indenture and the Notes and the Trustee may, in its discretion and shall
upon the request of holders of not less than one-quarter of the principal amount of Notes then outstanding under the
Indenture, demand payment of the principal or premium, if any, together with any accrued and unpaid interest up to (but
excluding) such date, which shall immediately become due and payable in cash, and may institute legal proceedings for the
collection of such aggregate amount in the event the Company fails to make payment thereof upon such demand.

 

    -17-

     

    

 

ARTICLE
9

 

MISCELLANEOUS

 

9.1             
Relationship to Indenture

 

The Seventh Supplemental Indenture is a supplemental indenture
within the meaning of the Indenture. The Indenture, as supplemented and amended by this Seventh Supplemental Indenture, is in all
respects ratified, confirmed and approved and, as supplemented and amended by this Seventh Supplemental Indenture, shall be read,
taken and construed as one and the same instrument.

 

9.2             
Modification of Indenture

 

Except as expressly modified by this Seventh Supplemental Indenture,
the provisions of the Indenture shall continue to apply to each Security issued thereunder.

 

9.3             
Governing Law

 

This instrument shall be governed by and construed in accordance
with the laws of the State of New York, except for the subordination provisions in Article 7 hereof, which are governed by, and
construed in accordance with, the laws of the Province of Alberta.

 

9.4             
Counterparts

 

This instrument may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and
the same instrument. Notwithstanding anything to the contrary in the Indenture, all references in the Indenture to the execution,
attestation or authentication of any Note or any certificate of authentication appearing on or attached to any Note by means of
a manual or facsimile signature shall be deemed to include signatures that are made or transmitted by images of manually executed
signatures transmitted by facsimile, email or other electronic format (including, without limitation, “pdf,” “tif”
or “jpg”) and other electronic signatures (including without limitation, DocuSign and AdobeSign or any other similar
platform identified by the Company and reasonably available at no undue burden or expense to the Trustee).

 

9.5             
Trustee Makes No Representation

 

The recitals contained herein are made by the Company and not
by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Seventh Supplemental Indenture.

 

    -18-

     

    

 

9.6             
 Appointment of Agent for Service of Process

 

As long as any of the Notes remain outstanding, the Company
appoints Enbridge (U.S.) Inc. as its authorized agent upon whom process may be served in any legal action or proceeding arising
out of or relating to the Indenture or any Note, in lieu of the arrangements provided in Section 112 of the Indenture, and covenants
and agrees that service of process in any such legal action or proceeding may be made upon it at the office of such agent at 5400
Westheimer Court, Houston, Texas 77056 (or at such other address in the United States as the Company may designate by written notice
to the Trustee). Service of process upon such agent and written notice of such service mailed or delivered to the Company shall
to the extent permitted by law be deemed in every respect effective service of process upon the Company in any such legal action
or proceeding.

 

The Company hereby consents to process being served in any suit,
action or proceeding of the nature referred to in the preceding paragraph by service upon such agent together with the mailing
of a copy thereof by registered or certified mail, postage prepaid, return receipt requested, to the address of the Company as
in effect from time to time pursuant to Section 105(2) of the Indenture. The Company irrevocably waives, to the fullest extent
permitted by law, all claim of error by reason of any such service (but does not waive any right to assert lack of subject matter
jurisdiction) and agrees that such service (i) shall be deemed in every respect effective service of process upon the Company
in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by law, be taken and held to be a valid
personal service upon and personal delivery to the Company.

 

    -19-

     

    

 

 

IN WITNESS WHEREOF the parties hereto have caused this Seventh
Supplemental Indenture to be duly executed all as of the day and year first written above.

 

	 	ENBRIDGE INC.
	 
	 	By	/s/ Maximilian G. Chan
	 	 	 	Name:	Maximilian G. Chan
	 	 	 	Title:	Vice President, Treasury & Enterprise Risk
	 
	 	By	/s/ Karen K. L. Uehara
	 	 	 	Name:	Karen K. L. Uehara
	 	 	 	Title:	Vice President & Corporate Secretary

 

[Signature Page to Seventh Supplemental Indenture]

 

    -20-

     

    

 

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
	 	as Trustee
	 
	 	By	     /s/ Debra A Schwalb
	 	 	 	Name:	Debra A Schwalb
	 	 	 	Title:	Vice President
	 
	 	By	     /s/ Chris Niesz
	 	 	 	Name:	Chris Niesz
	 	 	 	Title:	Vice President

 

[Signature Page to Seventh Supplemental Indenture]

 

    -21-

     

    

 

SCHEDULE A

 

FORM OF REGISTERED NOTE

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE
OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ENBRIDGE INC. (THE “COMPANY”)
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN
THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

 

No. [●]

 

ENBRIDGE INC.

 

(a corporation duly organized and existing
under the Companies Ordinance of the Northwest Territories and continued and existing under the Canada Business Corporations Act)

 

5.750% Fixed-to-Fixed Rate Subordinated
Notes Series 2020-A Due 2080

 

CUSIP: 29250N BC8

ISIN: US29250NBC83

 

ENBRIDGE INC. (the “Company”) for
value received hereby promises to pay to the registered holder hereof (the “Holder”) on July 15, 2080 or on
such earlier date as the principal amount hereof may become due in accordance with the provisions of the Indenture hereinafter
mentioned, the principal sum of in lawful money of the United States on presentation and
surrender of this Note (as defined below) at the principal office of the Trustee in The City of New York, New York or such
other location as it may designate from time to time, and to pay interest on the principal amount hereof from and including
the date hereof, or from and including the last Interest Payment Date (as defined in the Indenture) to which interest shall
have been paid or made available for payment on the outstanding Notes, whichever is later, semi-annually in arrears on
January 15 and July 15 (other than July 15, 2020) of each year (i) from, and including, the date hereof to, but not
including, July 15, 2030 at the rate of 5.750% per annum and (ii) from, and including, July 15, 2030, during each Interest
Reset Period (as defined in the Indenture), at a rate per annum equal to the Five-Year Treasury Rate (as defined in the
Indenture) as of the most recent Reset Interest Determination Date (as defined in the Indenture), plus: (a) for the period
from, and including, the Initial Interest Reset Date to, but not including, July 15, 2050, 5.314% and (b) for the period
from, and including, July 15, 2050 to, but not including, July 15, 2080, 6.064%, in each case, to be reset on each Interest
Reset Date. Subject to Article 5 of the Seventh Supplemental Indenture referred to below, interest as aforesaid shall be
payable after as well as before default, with interest on overdue interest at the same rates and on the same dates.

 

● DOLLARS

 

$[●]

 

    A-1

     

    

 

This Note is one of the 5.750% Fixed-to-Fixed Rate Subordinated
Notes Series 2020-A due 2080 (the “Notes”) of the Company issued or issuable under the provisions of an Indenture
dated as of February 25, 2005, between the Company and Deutsche Bank Trust Company Americas, as trustee (the “Trustee”),
as amended and supplemented by a First Supplemental Indenture dated as of March 1, 2012, and as further amended and supplemented
by a Seventh Supplemental Indenture dated as of July 8, 2020 between the Company and the Trustee (which indenture as amended and
supplemented is herein referred to as the “Indenture”). The Notes issuable under the Indenture are unlimited
in principal amount. Reference is hereby expressly made to the Indenture for a description of the terms and conditions upon which
the Notes are or are to be issued and held and the rights, remedies and obligations of the holders of the Notes, of the Company
and of the Trustee in respect thereof, all to the same effect as if the provisions of the Indenture were herein set forth, to all
of which provisions the Holder by acceptance hereof acknowledges and assents.

 

So long as no Event of Default has occurred and is continuing,
the Company may elect, at its sole option, at any date other than an Interest Payment Date (a “Deferral Date”),
to defer the interest payable on the Notes on one or more occasions for up to five consecutive years (a “Deferral Period”).
There shall be no limit on the number of Deferral Events that may occur. Such deferral will not constitute an Event of Default
or any other breach under the Indenture and the Notes. Deferred interest will accrue, compounding on each subsequent Interest Payment
Date, until paid. A Deferral Period terminates on any Interest Payment Date where the Company pays all accrued and unpaid interest
on such date. No Deferral Period may extend beyond the Maturity Date.

 

The Notes are issuable only as fully registered Notes in minimum
denominations of $2,000 and integral multiples of $1,000 in excess thereof. Upon compliance with the provisions of the Indenture,
the Notes of any denomination may be exchanged for an equal aggregate principal amount of the Notes in any other authorized denomination
or denominations.

 

The Notes are direct obligations of the Company but are not
secured by any mortgage, pledge, hypothec or other charge.

 

    A-2

     

    

 

The indebtedness evidenced by this Note and by all other Notes
now or hereafter authenticated and delivered under the Indenture is subordinated and subject in right of payment, to the extent
and in the manner provided in the Indenture, to the prior payment in full of all present and future Senior Indebtedness (as defined
in the Indenture), whether outstanding at the date of the Indenture or thereafter created, incurred, assumed or guaranteed.

 

The right is reserved to the Company to purchase or redeem the
Notes for cancellation, in all cases in accordance with the provisions of the Indenture.

 

The Notes will be automatically converted into Conversion Preference
Shares (as defined in the Indenture) upon an Automatic Conversion Event (as defined in the Indenture), in the manner, with the
effect and as of the effective time contemplated in the Indenture.

 

The Company
intends to treat the Notes as equity of the Company for U.S. federal income tax purposes. Holders of the Notes are required, in
the absence of a statutory, regulatory, administrative or judicial ruling to the contrary, to treat the Notes for U.S. federal
income tax purposes in accordance with such characterization.

 

This Note may only be transferred, upon compliance with the
conditions prescribed in the Indenture, in one of the registers to be kept at the principal office of the Trustee or other registrar
in The City of New York, New York by the Holder or such Holder’s executors or administrators or other legal representatives
or such Holder’s attorney duly appointed by an instrument in form and substance satisfactory to the Trustee or other registrar,
and upon compliance with such reasonable requirements as the Trustee and/or other registrar may prescribe.

 

This Note shall be governed by and construed in accordance with
the laws of the State of New York, except for the subordination provisions referred to herein and in the Seventh Supplemental Indenture
dated as of July 8, 2020, which are governed by, and construed in accordance with, the laws of the Province of Alberta.

 

This Note shall not become obligatory for any purpose until
it shall have been authenticated by the Trustee under the Indenture.

 

    A-3

     

    

 

In Witness Whereof,
the Company has caused this instrument to be duly executed.

 

	 	ENBRIDGE INC.
	 
	 	By	 
	 	 	Name:	●
	 	 	Title:	●
	 
	 	By	 
	 	 	Name:	●
	 	 	Title:	●

 

    A-4

     

    

 

(FORM OF TRUSTEE’S CERTIFICATE OF
AUTHENTICATION)

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

Dated:

 

	 	Deutsche Bank Trust Company Americas, As Trustee
	 
	 	By	 
	 	 	Authorized Officer

 

    A-5

     

    

 

(FORM OF CERTIFICATE OF TRANSFER)

 

CERTIFICATE OF TRANSFER

 

I or we assign and transfer this Note to:

 

(Print or type assignee’s name, address and postal code)

 

and irrevocably appoint agent to transfer this Note on the books
of ENBRIDGE INC. The agent may substitute another to act for him.

 

	Date:	Your 

Signature:
	 	 	(Sign exactly as your name appears on the Notes)
	 	 
	 	Signature 

Guarantee:
	 	(This signature must be guaranteed by or a member of the Securities Transfer Association Medallion Program (STAMP), a member of the Stock Exchange Medallion Program (SEMP) or a member of the New York Stock Exchange Inc. Medallion Signature Program (MSP)).

 

    A-6

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