Document:

Exhibit

EXHIBIT 4.2
    

EIGHTH SUPPLEMENTAL INDENTURE

__________

FIRSTENERGY GENERATION, LLC

TO

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. 
as Trustee

__________

Dated as of August 15, 2016

__________

Providing among other things for

First Mortgage Bonds, Guarantee Series I of 2016 due 2028

First Mortgage Bonds, Guarantee Series J of 2016 due 2029

First Mortgage Bonds, Guarantee Series K of 2016 due 2047

First Mortgage Bonds, Guarantee Series L of 2016 due 2028

_________

Supplemental to Open-End Mortgage, General Mortgage
Indenture and Deed of Trust, Dated as of June 19, 2008

    

THIS EIGHTH SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of August 15, 2016, between FIRSTENERGY GENERATION, LLC (formerly known as FirstEnergy Generation Corp.), a limited liability company organized and existing under the laws of the State of Ohio (hereinafter called the “Company”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (formerly known as The Bank of New York Trust Company, N.A.), a national banking association organized and existing under the laws of the United States of America, as Trustee (hereinafter called the “Trustee”) under the Open-End Mortgage, General Mortgage Indenture and Deed of Trust, dated as of June 19, 2008 (hereinafter called the “Original Indenture”) with the Company.  
W I T N E S S E T H:
WHEREAS, the Company has heretofore duly executed and delivered to the Trustee the Original Indenture to secure Bonds of the Company, issuable in series, from time to time, in the manner and subject to the conditions set forth, and without limit as to principal amount except as provided in the Original Indenture which Original Indenture has been filed for record in the filing offices set forth on Schedule 1 attached hereto and incorporated herein by reference; and 
WHEREAS, the Company has heretofore executed and delivered to the Trustee, a First Supplemental Indenture supplementing the Original Indenture dated as of June 25, 2008 (the “First Supplemental Indenture”), a Second Supplemental Indenture supplementing the Original Indenture dated as of March 1, 2009 (the “Second Supplemental Indenture”), a Third Supplemental Indenture supplementing the Original Indenture dated as of March 31, 2009 (the “Third Supplemental Indenture”), a Fourth Supplemental Indenture supplementing the Original Indenture dated as of June 15, 2009 (the “Fourth Supplemental Indenture”), a Fifth Supplemental Indenture supplementing the Original Indenture dated as of June 30, 2009 (the “Fifth Supplemental Indenture”), a Sixth Supplemental Indenture supplementing the Original Indenture dated as of December 1, 2009 (the “Sixth Supplemental Indenture”), a Seventh Supplemental Indenture supplementing the Original Indenture dated as of February 14, 2012 (the “Seventh Supplemental Indenture”) and the Original Indenture, which, as supplemented by the aforementioned First Supplemental Indenture, Second Supplemental Indenture, Third Supplemental Indenture, Fourth Supplemental Indenture, Fifth Supplemental Indenture, Sixth Supplemental Indenture, Seventh Supplemental Indenture and this Supplemental Indenture and any other indentures supplemental to the Original Indenture, is herein referred to as the “Indenture”; and
WHEREAS, the Company, by appropriate corporate action in conformity with the terms of the Indenture, has duly determined to create five new series of Bonds under the Indenture, consisting of (i) $25,000,000 in aggregate principal amount to be designated as “First Mortgage Bonds, Guarantee Series I of 2016 due 2028” (hereinafter referred to as the “bonds of Guarantee Series I”); (ii) $100,000,000 in aggregate principal amount to be designated as “First Mortgage Bonds, Guarantee Series J of 2016 due 2029 (hereinafter referred to as the “bonds of Guarantee Series J”); (iii) $46,300,000 in aggregate principal amount to be designated as “First Mortgage Bonds, Guarantee Series K of 2016 due 2047” (hereinafter referred to as the “bonds of Guarantee Series K”); (iv) $15,000,000 in aggregate principal amount to be designated as “First Mortgage Bonds, Guarantee Series L of 2016 due 2028” (hereinafter referred to as the “bonds of Guarantee Series L” and together with the bonds of Guarantee Series I, the bonds of Guarantee Series J, and the bonds of Guarantee Series K, the “bonds of August 2016 Series”), which shall bear interest at the respective rates per annum set forth in, shall be subject to certain redemption rights and obligations set forth in, and will otherwise be in the respective forms and have the terms and provisions provided for in this Supplemental Indenture; and 

WHEREAS, the bonds of Guarantee Series I and the Trustee’s certificate of authentication to be endorsed thereon shall be substantially in the form included in Exhibit A hereto; the bonds of Guarantee Series J and the Trustee’s certificate of authentication to be endorsed thereon shall be substantially in the form included in Exhibit B hereto; the bonds of Guarantee Series K and the Trustee’s certificate of authentication to be endorsed thereon shall be substantially in the form included in Exhibit C hereto; and the bonds of Guarantee Series L and the Trustee’s certificate of authentication to be endorsed thereon shall be substantially in the form included in Exhibit D hereto; and
WHEREAS, it is provided in the Indenture, among other things, that the Company shall execute and file with the Trustee and the Trustee, at the request of the Company, when required by the Indenture, shall join in indentures supplemental thereto, and which thereafter shall form a part thereof, for the purpose, among others of providing for the creation of any series of Bonds and specifying the form and provisions of the Bonds of such series; and
WHEREAS, the Company deems it advisable to enter into this Supplemental Indenture for the purposes of establishing the form, terms and provisions of the bonds of Guarantee Series I, the bonds of Guarantee Series J, the bonds of Guarantee Series K and the bonds of Guarantee Series L as provided and contemplated by Sections 2.01(a) and 3.01(b) of the Indenture, and the Company has requested and hereby requests the Trustee to join in the execution of this Supplemental Indenture; and 
WHEREAS, all acts and things have been done and performed which are necessary to make this Supplemental Indenture, when duly executed and delivered, a valid, binding and legal instrument in accordance with its terms and for the purposes herein expressed; and the execution and delivery of this Supplemental Indenture have been in all respects duly authorized.
NOW THEREFORE, in consideration of the premises and in further consideration of the sum of One Dollar in lawful money of the United States of America paid to the Company by the Trustee at or before the execution and delivery of this Supplemental Indenture, the receipt whereof is hereby acknowledged, and of other good and valuable consideration, it is agreed by and between the Company and the Trustee as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01    Terms Incorporated by Reference.

Except for the terms defined in this Supplemental Indenture, all capitalized terms used in this Supplemental Indenture have the respective meanings set forth in the Original Indenture.
SECTION 1.02    Additional Definitions.
“2002 A Pledge Agreement” means the Pledge Agreement, dated August 15, 2016, between the Company and the 2002 A Revenue Bond Trustee pursuant to which the Company pledges and delivers the bonds of Guarantee Series L.
“2002 A Revenue Bonds” means the $15,000,000 aggregate principal amount of Exempt Facilities Revenue Bonds, Series 2002 A (Shippingport Project) issued by the Pennsylvania Economic Development Financing Authority.
“2002 A Revenue Bond Indenture” means the Amended and Restated Trust Indenture, dated as of November 1, 2012, between the Pennsylvania Economic Development Financing Authority and the 2002 A Revenue Bond Trustee, securing the 2002 A Revenue Bonds issued for the benefit of the Company.
“2002 A Revenue Bond Trustee” means The Bank of New York Mellon Trust Company, N.A., as trustee under that certain 2002 A Revenue Bond Indenture.
“2008-B Pledge Agreement” means the Pledge Agreement, dated August 15, 2016, between the Company and the 2008-B Revenue Bond Trustee pursuant to which the Company pledges and delivers the bonds of Guarantee Series K.
“2008-B Revenue Bonds” means the $46,300,000 aggregate principal amount of Beaver County Pollution Control Revenue Refunding Bonds, Series 2008-B (FirstEnergy Generation  Project) issued by the Beaver County Industrial Development Authority.
“2008-B Revenue Bond Indenture” means the Trust Indenture, dated as of September 1, 2008, between the Beaver County Industrial Development Authority and the 2008-B Revenue Bond Trustee, securing the 2008-B Revenue Bonds issued for the benefit of the Company.
“2008-B Revenue Bond Trustee” means The Bank of New York Mellon Trust Company, N.A., as trustee under that certain 2008-B Revenue Bond Indenture.
“2008-C Pledge Agreement” means the Pledge Agreement, dated August 15, 2016, between the Company and the 2008-C Revenue Bond Trustee pursuant to which the Company pledges and delivers the bonds of Guarantee Series I.
“2008-C Revenue Bonds” means the $25,000,000 aggregate principal amount of Beaver County Industrial Development Authority Pollution Control Revenue Refunding Bonds, Series 2008-C (FirstEnergy Generation Project) to be issued by the Beaver County Industrial Development Authority.

“2008-C Revenue Bond Indenture” means the Trust Indenture, dated as of November 1, 2008, between the Beaver County Industrial Development Authority and the 2008-C Revenue Bond Trustee, securing the 2008-C Revenue Bonds issued for the benefit of the Company.
“2008-C Revenue Bond Trustee” means The Bank of New York Mellon Trust Company, N.A., as trustee under that certain 2008-C Revenue Bond Indenture.
“2009-D Pledge Agreement” means the Pledge Agreement, dated on or about September 15, 2016, between the Company and the 2009-D Revenue Bond Trustee pursuant to which the Company pledges and delivers the bonds of Guarantee Series J.
“2009-D Revenue Bonds” means the $100,000,000 aggregate principal amount of State of Ohio Pollution Control Revenue Refunding Bonds, Series 2009-D (FirstEnergy Generation Project) to be issued by the Ohio Air Quality Development Authority.
“2009-D Revenue Bond Indenture” means the Trust Indenture, dated as of June 1, 2009 as amended, between the Ohio Air Quality Development Authority and the 2009-D Revenue Bond Trustee, securing the 2009-D Revenue Bonds issued for the benefit of the Company.
“2009-D Revenue Bond Trustee” means The Bank of New York Mellon Trust Company, N.A., as trustee under that certain 2009-D Revenue Bond Indenture.
“Bonds of August 2016 Series” means collectively, the bonds of Guarantee Series I, the bonds of Guarantee Series J, the bonds of Guarantee Series K, and the bonds of Guarantee Series L.
“Initial Interest Accrual Date” shall have the respective meaning assigned to such term in the respective form of bond of Guarantee Series I, form of bond of Guarantee Series J, form of bond of Guarantee Series K, and form of bond of Guarantee Series L.
“Interest Payment Date” shall have the meaning assigned to such term in the respective form of bond of August 2016 Series.
“Pledge Agreements” means, collectively, the 2002 A Pledge Agreement, the 2008-B Pledge Agreement, the 2008-C Pledge Agreement, the 2009-A Pledge Agreement and the 2009-D Pledge Agreement.
“Revenue Bond Indentures” means, collectively, the 2002 A Revenue Bond Indenture, the 2008-B Revenue Bond Indenture, the 2008-C Revenue Bond Indenture, the 2009-A Revenue Bond Indenture and the 2009-D Revenue Bond Indenture.
“Revenue Bond Trustees” means, collectively, the 2002 A Revenue Bond Trustee, the 2008-B Revenue Bond Trustee, the 2008-C Revenue Bond Trustee, the 2009-A Revenue Bond Trustee, and the 2009-D Revenue Bond Trustee.

SECTION 1.03.    Rules of Construction.  All references to any agreement refer to such agreement as modified, varied, supplemented, amended or restated from time to time by the parties thereto (including any permitted successors or assigns) in accordance with its terms.
ARTICLE II
BONDS
SECTION 2.01.  Designation and Issuance of Bonds.  (a)  The bonds of Guarantee Series I shall be designated, as hereinbefore recited, as the Company’s “First Mortgage Bonds, Guarantee Series I of 2016 due 2028” and, subject to the provisions of the Indenture, shall be limited to the aggregate principal amount of Twenty-Five Million Dollars ($25,000,000).  The bonds of Guarantee Series I are to be issued and secured by the Lien of the Indenture.
(b)    The bonds of Guarantee Series J shall be designated, as hereinbefore recited, as the Company’s “First Mortgage Bonds, Guarantee Series J of 2016 due 2029” and, subject to the provisions of the Indenture, shall be limited to the aggregate principal amount of One Hundred Million Dollars ($100,000,000).  The bonds of Guarantee Series J are to be issued and secured by the Lien of the Indenture.
 (c)    The bonds of Guarantee Series K shall be designated, as hereinbefore recited, as the Company’s “First Mortgage Bonds, Guarantee Series K of 2016 due 2047” and, subject to the provisions of the Indenture, shall be limited to the aggregate principal amount of Forty-Six Million Three Hundred Thousand Dollars ($46,300,000).  The bonds of Guarantee Series K are to be issued and secured by the Lien of the Indenture.
(d)    The bonds of Guarantee Series L shall be designated, as hereinbefore recited, as the Company’s “First Mortgage Bonds, Guarantee Series L of 2016 due 2028” and, subject to the provisions of the Indenture, shall be limited to the aggregate principal amount of Fifteen Million Dollars ($15,000,000).  The bonds of Guarantee Series L are to be issued and secured by the Lien of the Indenture.
SECTION 2.02.  Form, Date, Maturity Date, Interest Rate and Interest Payment Dates of Bonds.  (a)  The definitive bonds of August 2016 Series shall be in engraved, lithographed, printed or typewritten form and shall be registered bonds without coupons, and such bonds and the Trustee’s certificate of authentication to be endorsed thereon shall be substantially in the respective forms included in Exhibits A, B, C, and D hereto.  The bonds of August 2016 Series shall be dated as provided in Section 3.03 of the Indenture.
(b)    The bonds of Guarantee Series I shall bear interest from the Initial Interest Accrual Date as provided in the form of the bond of Guarantee Series I, and such provisions are incorporated at this place as though set forth in their entirety.  The interest rate and maturity date of the bonds of Guarantee Series I shall be as set forth in the form of the bond of Guarantee Series I.

(c)    The interest on the bonds of Guarantee Series I so payable on any Interest Payment Date shall, subject to the exceptions provided in Section 3.07 of the Indenture, be paid to the person in whose name such Bond is registered on such Interest Payment Date.
(d)    The bonds of Guarantee Series J shall bear interest from the Initial Interest Accrual Date as provided in the form of the bond of Guarantee Series J, and such provisions are incorporated at this place as though set forth in their entirety. The interest rate and maturity date of the bonds of Guarantee Series J shall be as set forth in the form of the bond of Guarantee Series J.
(e)    The interest on the bonds of Guarantee Series J so payable on any Interest Payment Date shall, subject to the exceptions provided in Section 3.07 of the Indenture, be paid to the person in whose name such bond is registered on such Interest Payment Date.
(f)    The bonds of Guarantee Series K shall bear interest from the Initial Interest Accrual Date as provided in the form of the bond of Guarantee Series K, and such provisions are incorporated at this place as though set forth in their entirety. The interest rate and maturity date of the bonds of Guarantee Series K shall be as set forth in the form of the bond of Guarantee Series K.
(g)    The interest on the bonds of Guarantee Series K so payable on any Interest Payment Date shall, subject to the exceptions provided in Section 3.07 of the Indenture, be paid to the person in whose name such bond is registered on such Interest Payment Date.
(h)    The bonds of Guarantee Series L shall bear interest from the Initial Interest Accrual Date as provided in the form of the bond of Guarantee Series L, and such provisions are incorporated at this place as though set forth in their entirety. The interest rate and maturity date of the bonds of Guarantee Series L shall be as set forth in the form of the bond of Guarantee Series L.
(i)    The interest on the bonds of Guarantee Series L so payable on any Interest Payment Date shall, subject to the exceptions provided in Section 3.07 of the Indenture, be paid to the person in whose name such bond is registered on such Interest Payment Date.
SECTION 2.03.  Bonds Issued as Collateral Security.  The bonds of Guarantee Series I shall be issued, delivered, and pledged to, and registered in the name of, the 2008-C Revenue Bond Trustee in order to secure and provide for, and as collateral security for, the due and punctual payment of the principal of and interest on the 2008-C Revenue Bonds until the Release Date (as defined in the 2008-C Pledge Agreement).  The bonds of Guarantee Series J shall be issued, delivered, and pledged to, and registered in the name of, the 2009-D Revenue Bond Trustee in order to secure and provide for, and as collateral security for, the due and punctual payment of the principal of and interest on the 2009-D Revenue Bonds until the Release Date (as defined in the 2009-D Pledge Agreement).  The bonds of Guarantee Series K shall be issued, delivered, and pledged to, and registered in the name of, the 2008-B Revenue Bond Trustee in order to secure and provide for, and as collateral security for, the due and punctual payment of the principal of and interest on the 2008-B Revenue Bonds until the Release Date (as defined in the 2008-B Pledge Agreement).  The bonds of Guarantee Series L shall be issued, delivered, and pledged to, and registered in the name of, the 2002 A Revenue Bond Trustee in order to secure and provide for, and as collateral security for, the due and punctual payment of the principal of and interest on the 2002 A Revenue Bonds until the Release Date (as defined in the 2002 APledge Agreement).

SECTION 2.04.  Credit for Payments of the Revenue Bonds.  (a)    If and when the principal of any 2008-C Revenue Bonds is paid, then there is deemed to be paid an equal principal amount of the bonds of Guarantee Series I then outstanding; provided, however, that such payment of the bonds of Guarantee Series I is deemed to be made only when and to the extent that notice of such payment of such 2008-C Revenue Bonds is given by the Company to the Trustee.
(b)    If and when the principal of any 2009-D Revenue Bonds is paid, then there is deemed to be paid an equal principal amount of the bonds of Guarantee Series J then outstanding; provided, however, that such payment of the bonds of Guarantee Series J is deemed to be made only when and to the extent that notice of such payment of such 2009-D Revenue Bonds is given by the Company to the Trustee.
(c)     If and when the principal of any 2008-B Revenue Bonds is paid, then there is deemed to be paid an equal principal amount of the bonds of Guarantee Series K then outstanding; provided, however, that such payment of the bonds of Guarantee Series K is deemed to be made only when and to the extent that notice of such payment of such 2008-B Revenue Bonds is given by the Company to the Trustee.
(d)     If and when the principal of any 2002-A Revenue Bonds is paid, then there is deemed to be paid an equal principal amount of the bonds of Guarantee Series L then outstanding; provided, however, that such payment of the bonds of Guarantee Series L is deemed to be made only when and to the extent that notice of such payment of such 2002-A Revenue Bonds is given by the Company to the Trustee.
SECTION 2.05.  Execution of Bonds.  The bonds of August 2016 Series shall be executed on behalf of the Company in accordance with Section 3.03 of the Indenture.  
SECTION 2.06.  Medium and Places of Payment of Principal of, and Interest on, Bonds; Transferability and Exchangeability.  The principal of, and the interest on, the bonds of August 2016 Series shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts, and such principal and interest shall be payable at the office or agency of the Company in the City of Cleveland, State of Ohio.  The Corporate Trust Office of the Trustee shall serve as the initial location of such office.  Subject to the limitations provided herein, the bonds of August 2016 Series shall be transferable and exchangeable, in the manner provided in Sections 3.05 and 3.06 of the Indenture, at said office or agency.  The bonds of August 2016 Series shall not be transferable except (i) to a successor to the respective Revenue Bond Trustee under the respective Revenue Bond Indenture, (ii) in connection with the exercise of the rights and remedies of the holder thereof consequent upon an event of default as defined in the Indenture, or (iii) as may be necessary to comply with a final order of a court of competent jurisdiction in connection with any bankruptcy or reorganization proceeding of the Company.  No charge shall be made by the Company to the registered owner of any bond of August 2016 Series for the registration of transfer of such Bond or for the exchange thereof for Bonds of the same series of other authorized denominations, except, in the case of any transfer, a charge sufficient to reimburse the Company for any stamp or other tax or governmental charge required to be paid by the Company or the Trustee.

SECTION 2.07.  Denominations and Numbering of Bonds.  The bonds of August 2016 Series shall be issued in the denomination of $1,000 and any integral multiple thereof.  Each series of the bonds of August 2016 Series shall each be numbered R-1 and consecutively upwards.
SECTION 2.08.  Temporary Bonds.  Until definitive bonds of August 2016 Series are ready for delivery, there may be authenticated and issued in lieu of any thereof and subject to all of the provisions, limitations, and conditions set forth in Section 3.04 of the Indenture, temporary registered bonds of August 2016 Series without coupons.
SECTION 2.09.  Mandatory Redemption.  The bonds of August 2016 Series shall be subject to mandatory redemption as provided in the respective forms thereof.  
SECTION 2.10.  Confirmation of Lien.  The Company, for the equal and proportionate benefit and security of the holders of all Bonds at any time issued under the Indenture, hereby confirms the lien and security interest of the Indenture upon, and hereby grants, bargains, sells, releases, conveys, assigns, transfers, mortgages, pledges, sets over and confirms to the Trustee, and grants to the Trustee a security interest in, the Mortgaged Property, including all Additional Property heretofore made subject to the Indenture by virtue of one or more supplemental indentures.. 
ARTICLE III
MISCELLANEOUS
SECTION 3.01    Except as herein otherwise expressly provided, no duties, responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by reason of this Supplemental Indenture; the Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals herein or in the bonds of August 2016 Series (except the Trustee’s authentication certificate), all of which are made by the Company solely; and this Supplemental Indenture is executed and accepted by the Trustee, subject to all the terms and conditions set forth in the Indenture, as fully to all intents and purposes as if the terms and conditions of the Indenture were herein set forth at length.

SECTION 3.02    As supplemented by this Supplemental Indenture, the Indenture is in all respects ratified and confirmed, and the Indenture as herein defined, and this Supplemental Indenture, shall be read, taken and construed as one and the same instrument.  
SECTION 3.03    Nothing in this Supplemental Indenture contained shall or shall be construed to confer upon any person other than a Holder of Bonds issued under the Indenture, the Company and the Trustee any right or interest to avail himself of any benefit under any provision of the Indenture or of this Supplemental Indenture.
SECTION 3.04    This Supplemental Indenture may be simultaneously executed in several counterparts and all such counterparts executed and delivered, each as an original, shall constitute but one and the same instrument.

[Remainder of this page intentionally left blank.]

IN WITNESS WHEREOF, FIRSTENERGY GENERATION, LLC, party of the first part hereto, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., party of the second part hereto, have caused these presents to be executed in their respective names as of the day and year first above written.
	
				
	 
	 
	FIRSTENERGY GENERATION, LLC

	 
	 

	 
	 
	By:
	/s/ Steven R. Staub 

	 
	 
	Steven R. Staub

	 
	 
	Vice President and Treasurer

	 
	 

	 
	 
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. as Trustee

	 
	 

	 
	 
	By:
	/s/ Lisa J. Jennings

	 
	 
	Lisa J. Jennings

	 
	 
	Vice President

STATE OF OHIO        )
)ss.:
COUNTY OF SUMMIT    )

On the 15th day of August, 2016, personally appeared before me, a Notary Public in and for the said County and State aforesaid, Steven R. Staub, to me known and known to me to be the Vice President and Treasurer of FIRSTENERGY GENERATION, LLC, the limited liability company which executed the foregoing instrument, and who severally acknowledged that he did sign such instrument as such Vice President and Treasurer of FIRSTENERGY GENERATION, LLC, the same is his free act and deed and the free and company act and deed of said limited liability company.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the 15th day of August, 2016. 
                        	
		
	 

	/s/ Michele A. Buchtel

	________________, Notary Public

	Commission Expires Aug. 28, 2016

	 
	 

	 
	 

[NOTARIAL SEAL]    Michele A. Buchtel
Resident Summit County
Notary Public, State of Ohio
My Commission Expires: 08/28/2016

STATE OF OHIO        )
)ss.:
COUNTY OF CUYAHOGA    )

On the 12 day of August, 2016, personally appeared before me, a Notary Public in and for the said County and State aforesaid, Lisa J. Jennings, to me known and known to me to be a Vice President of THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., the national banking association which executed the foregoing instrument, and who severally acknowledged that he did sign such instrument as such Vice President for and on behalf of said national banking association and that the same is his free act and deed and the free and corporate act and deed of said national banking association.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the 12 day of August, 2016. 
                            	
		
	 

	/s/ Mary C. Keating

	Mary C. Keating, Notary Public

	Commission Expires 7-21-2021

	 
	 

[NOTARIAL SEAL]MARY C. KEATING
NOTARY PUBLIC
FOR THE
STATE OF OHIO
My Commission Expires
July 21, 2021

The Bank of New York Mellon Trust Company, N.A. hereby certifies that its precise name and address as Trustee is:
The Bank of New York Mellon Trust Company, N.A.
Global Corporate Trust
1660 West 2nd Street, Suite 830
Cleveland, Ohio 44113
	
		
	THE BANK OF NEW YORK MELLON TRUST 
COMPANY, N.A.

	 

	By:
	/s/ Lisa J. Jennings

	 
	Lisa J. Jennings

	 
	Vice President

THIS INSTRUMENT PREPARED BY: 

Lucas F. Torres
Akin Gump Strauss Hauer & Feld LLP
One Bryant Park
New York, NY 10036

Exhibit A
[FORM OF FIRST MORTGAGE BOND OF GUARANTEE SERIES I]

This Bond is not transferable except (i) to a successor trustee under the Trust  Indenture, dated as of November 1, 2008 as amended, between the Beaver County Industrial Development Authority and The Bank of New York Mellon Trust Company, N.A., as trustee, referred to herein, (ii) in connection with the exercise of the rights and remedies of the holder hereof consequent upon an “Event of Default” as defined in the Indenture referred to herein or (iii) as may be necessary to comply with a final order of a court of competent jurisdiction in connection with any bankruptcy or reorganization proceeding of the Company.
FIRSTENERGY GENERATION, LLC
First Mortgage Bond, Guarantee Series I of 2016 due 2028
Due June 1, 2028
$25,000,000    No. R-1

FIRSTENERGY GENERATION, LLC (formerly known as FirstEnergy Generation Corp.), a limited liability company of the State of Ohio (herein, together with its successors and assigns, the “Company”), for value received promises to pay to The Bank of New York Mellon Trust Company, N.A., as trustee (the “Revenue Bond Trustee”) under that certain Trust Indenture, dated as of November 1, 2008 as amended, between the Beaver County Industrial Development Authority and the Revenue Bond Trustee, securing $25,000,000 of Beaver County Industrial Development Authority Pollution Control Revenue Refunding Bonds, Series 2008-C (FirstEnergy Generation Project) issued for the benefit of the Company (the “Revenue Bonds”) (such Trust Indenture, as amended from time to time, hereinafter the “Revenue Bond Indenture”), or registered assigns, on June 1, 2028, the principal sum of Twenty Five Million Dollars, and to pay interest on the unpaid principal amount from the Initial Interest Accrual Date (as hereinafter defined) at the Revenue Bond Interest Rate (as hereinafter defined) per annum payable semi-annually on May 1 and November 1 in each year commencing on the May 1 or November 1 immediately succeeding the Initial Interest Accrual Date (each such date herein referred to as an “Interest Payment Date”) on and until maturity, or, in the case of any Bonds of this series duly called for redemption, on and until the redemption date, or in the case of any default by the Company in the payment of the principal due on any Bonds of this series, until the Company’s obligation with respect to the payment of such principal shall be discharged as provided in the Indenture (as hereinafter defined).  The interest on each Bond of this series so payable on any Interest Payment Date shall, subject to the exceptions provided in Section 3.07 of the Indenture, be paid to the person in whose name such Bond is registered on the date of such payment.  The principal of, and the interest on, this Bond shall be payable at the office or agency of the Company in the City of Cleveland, State of Ohio in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts.

This Bond is one of an issue of Bonds of the Company known as its First Mortgage Bonds, issued and to be issued in one or more series under and secured by an Open-End Mortgage, General Mortgage Indenture and Deed of Trust, dated as of June 19, 2008, duly executed by the Company to The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), a national banking association organized and existing under the laws of the United States of America, as Trustee (the “Trustee”), and indentures supplemental thereto, heretofore or hereafter executed, including the Eighth Supplemental Indenture dated as of August 15, 2016 (as amended, supplemented, modified or restated, the “Supplemental Indenture”), to which Open-End Mortgage, General Mortgage Indenture and Deed of Trust and all indentures supplemental thereto (collectively referred to as the “Indenture”) reference is hereby made for a description of the property mortgaged and pledged, the nature and extent of the security, the terms and conditions upon which such Bonds are, and are to be, issued and secured, and the rights of the owners of such Bonds and the Trustee in respect of such security.  As provided in the Indenture, such Bonds may be in various principal sums, are issuable in series, may mature at different times, may bear interest at different rates and may otherwise vary as therein provided; and this Bond is one Bond of a series entitled “First Mortgage Bonds, Guarantee Series I of 2016 due 2028,” created by the Supplemental Indenture, as provided for in the Indenture, and authorized for issuance in an aggregate principal amount of up to $25,000,000.
If and when the principal of any Revenue Bonds is paid, then there is deemed to be paid an equal principal amount of the Bonds of this series then outstanding; provided, however, that such payment of the Bonds of this series is deemed to be made only when and to the extent that notice of such payment of such Revenue Bonds is given by the Company to the Trustee.
The Bonds of this series shall have been delivered and pledged to the Revenue Bond Trustee pursuant to a Pledge Agreement, dated August 15, 2016, between the Company and the Revenue Bond Trustee (the “Pledge Agreement”), as security for the Revenue Bonds until the Release Date (as defined in the Pledge Agreement).  The Bonds of this series shall be redeemed by the Company in whole at any time prior to maturity at a redemption price of 100% of the principal amount thereof plus accrued and unpaid interest to the date of redemption following receipt by the Trustee of written demand for redemption (a “Redemption Demand”) from an authorized representative of the Revenue Bond Trustee under the Revenue Bond Indenture stating that the principal amount of all the Revenue Bonds then outstanding under the Revenue Bond Indenture has been declared due and payable pursuant to the provisions of Section 11.02 of the Revenue Bond Indenture, specifying the date of the accelerated maturity of such Revenue Bonds and the date or dates from which interest on the Revenue Bonds has then accrued and is unpaid (specifying the rate or rates of such accrual and the principal amount of the particular Revenue Bonds to which such rates apply), stating such declaration of maturity has not been annulled and demanding payment of the principal amount of the Bonds of this series plus accrued interest thereon to the date fixed for such redemption. The date fixed for such redemption shall be set forth in the aforesaid Redemption Demand and shall not be earlier than the date specified in such Redemption Demand as the date of accelerated maturity of the Revenue Bonds then outstanding under the Revenue Bond Indenture and not later than forty-five days after the Trustee’s receipt of such Redemption Demand unless such forty-fifth day is earlier than such date of accelerated maturity.  The Revenue Bond Trustee as the sole holder of the Bonds of this series, and any successor thereto, hereby irrevocably waives any requirement of notice of such redemption under Section 5.04 of the Indenture.  Upon receipt of the aforesaid Redemption Demand, the earliest date from which unpaid interest on the Revenue Bonds has then accrued (as specified by the Revenue Bond Trustee in the Redemption Demand) shall become the initial interest accrual date (the “Initial Interest Accrual Date”) with respect to the Bonds of this series; provided, however, on any demand for payment of the principal amount thereof at maturity as a result of the principal of the Revenue Bonds becoming due and payable on the maturity date of the Bonds of this series, the earliest date from which unpaid interest on the Revenue Bonds has then accrued shall become the Initial Interest Accrual Date with respect to the Bonds of this series, such date, together with each other different date from 

which unpaid interest on the Revenue Bonds has then accrued, to be as stated in a written notice from the Revenue Bond Trustee to the Trustee, which notice shall also specify the rate or rates of such accrual and the principal amount of the particular Revenue Bonds to which such rate or rates apply.  Such redemption shall become null and void for all purposes under the Indenture (including the fixing of the Initial Interest Accrual Date with respect to the Bonds of this series) upon receipt by the Trustee of written notice from the Revenue Bond Trustee of the annulment of the acceleration of the maturity of the Revenue Bonds then outstanding under the Revenue Bond Indenture and of the rescission of the aforesaid Redemption Demand prior to the redemption date specified in the Redemption Demand, and thereupon no redemption of the Bonds of this series and no payment in respect thereof as specified in the Redemption Demand, shall be effected or required.  But no such rescission shall extend to any subsequent Redemption Demand from the Revenue Bond Trustee or impair any right consequent on any such subsequent Redemption Demand.
The “Revenue Bond Interest Rate” shall be the same rate of interest per annum as is borne by the Revenue Bonds; provided, however, that if there are different rates of interest borne by the Revenue Bonds, or if interest is required to be paid on the Revenue Bonds more frequently than on each May 1 or November 1, the Revenue Bond Interest Rate shall be the rate that results in the total amount of interest payable on an Interest Payment Date, a redemption date or at maturity, as the case may be, or at any other time interest on this Bond is due and payable, to be equal to the total amount of unpaid interest that has accrued on all then outstanding Revenue Bonds.

The principal of this Bond may be declared or may become due before the maturity hereof, on the conditions, in the manner and at the times set forth in the Indenture, upon the happening of an Event of Default as therein defined.

From and after the Release Date, the Bonds of this series shall be deemed fully paid, satisfied and discharged and the obligation of the Company thereunder shall be terminated.  On the Release Date or promptly following, the Bonds of this series shall be surrendered to and cancelled by the Trustee.

No recourse shall be had for the payment of the principal of or premium, or interest if any, on this Bond, or any part hereof, or for any claim based hereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, against any incorporator, stockholder, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any Constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability of incorporators, stockholders, officers and directors being released by the registered owner hereof by the acceptance of this Bond and being likewise waived and released by the terms of the Indenture.

This Bond is nontransferable except to (i) effect transfer to any successor to the Revenue Bond Trustee under the Revenue Bond Indenture, (ii) in connection with the exercise of the rights and remedies of the holder hereof consequent upon an “Event of Default” as defined in the Indenture or (iii) as may be necessary to comply with a final order of a court of competent jurisdiction in connection with any bankruptcy or reorganization proceeding of the Company.  But this Bond is exchangeable by the registered holder hereof, in person or by attorney duly authorized, at the Corporate Trust Office of the Trustee, any such permitted transfer or exchange to be made in the manner and upon the conditions prescribed in the Indenture, upon the surrender and cancellation of this Bond and the payment of any applicable taxes and fees required by law, and upon any such transfer or exchange a new registered Bond or Bonds of the same series and tenor, will be issued to the authorized transferee, or the registered holder, as the case may be. The Company and the Trustee may deem and treat the person in whose name this Bond is registered as the absolute owner for the purpose of receiving payment of or on account of the principal and interest due hereon and for all other purposes.

This Bond shall not be valid until authenticated by the manual signature of the Trustee, or a successor Trustee or Authenticating Agent appointed pursuant to the Indenture. 

IN WITNESS WHEREOF, the Company has caused this Bond to be executed in its name by the manual or facsimile signature of an Authorized Executive Officer and attested by the manual or facsimile signature of another Authorized Executive Officer.
Dated: August 15, 2016 
FIRSTENERGY GENERATION, LLC
By:    
Name:  James F. Pearson
Title:  Executive Vice President and Chief Financial Officer
Attest:
    
Name: Ketan K. Patel
Title:  Vice President and Corporate Secretary

[FORM OF TRUSTEE’S AUTHENTICATION CERTIFICATE]

TRUSTEE’S AUTHENTICATION CERTIFICATE

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

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

By:    
Authorized Signatory

    

Exhibit B
[FORM OF FIRST MORTGAGE BOND OF GUARANTEE SERIES J]

This Bond is not transferable except (i) to a successor trustee under the Trust  Indenture, dated as of June 1, 2009 as amended, between the Ohio Air Quality Development Authority and The Bank of New York Mellon Trust Company, N.A., as trustee, referred to herein, (ii) in connection with the exercise of the rights and remedies of the holder hereof consequent upon an “Event of Default” as defined in the Indenture referred to herein or (iii) as may be necessary to comply with a final order of a court of competent jurisdiction in connection with any bankruptcy or reorganization proceeding of the Company.
FIRSTENERGY GENERATION, LLC
First Mortgage Bond, Guarantee Series J of 2016 due 2029
Due August 1, 2029
$100,000,000                                                No. R-1

FIRSTENERGY GENERATION, LLC (formerly known as FirstEnergy Generation Corp.), a limited liability company of the State of Ohio (herein, together with its successors and assigns, the “Company”), for value received promises to pay to The Bank of New York Mellon Trust Company, N.A., as trustee (the “Revenue Bond Trustee”) under that certain Trust Indenture, dated as of June 1, 2009 as amended, between the Ohio Air Quality Development Authority and the Revenue Bond Trustee, securing $100,000,000 of State of Ohio Pollution Control Revenue Refunding Bonds, Series 2009-D (FirstEnergy Generation Project) issued for the benefit of the Company (the “Revenue Bonds”) (such Trust Indenture, as amended from time to time, hereinafter the “Revenue Bond Indenture”), or registered assigns, on August 1, 2029, the principal sum of One Hundred Million Dollars, and to pay interest on the unpaid principal amount from the Initial Interest Accrual Date (as hereinafter defined) at the Revenue Bond Interest Rate (as hereinafter defined) per annum payable semi-annually on March 15 and September 15 in each year commencing on the  March 15 or September 15 immediately succeeding the Initial Interest Accrual Date (each such date herein referred to as an “Interest Payment Date”) on and until maturity, or, in the case of any Bonds of this series duly called for redemption, on and until the redemption date, or in the case of any default by the Company in the payment of the principal due on any Bonds of this series, until the Company’s obligation with respect to the payment of such principal shall be discharged as provided in the Indenture (as hereinafter defined).  The interest on each Bond of this series so payable on any Interest Payment Date shall, subject to the exceptions provided in Section 3.07 of the Indenture, be paid to the person in whose name such Bond is registered on the date of such payment.  The principal of, and the interest on, this Bond shall be payable at the office or agency of the Company in the City of Cleveland, State of Ohio in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts.

This Bond is one of an issue of Bonds of the Company known as its First Mortgage Bonds, issued and to be issued in one or more series under and secured by an Open-End Mortgage, General Mortgage Indenture and Deed of Trust, dated as of June 19, 2008, duly executed by the Company to The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), a national banking association organized and existing under the laws of the United States of America, as Trustee (the “Trustee”), and indentures supplemental thereto, heretofore or hereafter executed, including the Eighth Supplemental Indenture dated as of August 15, 2016 (as amended, supplemented, modified or restated, the “Supplemental Indenture”), to which Open-End Mortgage, General Mortgage Indenture and Deed of Trust and all indentures supplemental thereto (collectively referred to as the “Indenture”) reference is hereby made for a description of the property mortgaged and pledged, the nature and extent of the security, the terms and conditions upon which such Bonds are, and are to be, issued and secured, and the rights of the owners of such Bonds and the Trustee in respect of such security.  As provided in the Indenture, such Bonds may be in various principal sums, are issuable in series, may mature at different times, may bear interest at different rates and may otherwise vary as therein provided; and this Bond is one Bond of a series entitled “First Mortgage Bonds, Guarantee Series J of 2016 due 2029,” created by the Supplemental Indenture, as provided for in the Indenture, and authorized for issuance in an aggregate principal amount of up to $100,000,000.
If and when the principal of any Revenue Bonds is paid, then there is deemed to be paid an equal principal amount of the Bonds of this series then outstanding; provided, however, that such payment of the Bonds of this series is deemed to be made only when and to the extent that notice of such payment of such Revenue Bonds is given by the Company to the Trustee.
The Bonds of this series shall have been delivered and pledged to the Revenue Bond Trustee pursuant to a Pledge Agreement, dated September 15, 2016, between the Company and the Revenue Bond Trustee (the “Pledge Agreement”), as security for the Revenue Bonds until the Release Date (as defined in the Pledge Agreement).  The Bonds of this series shall be redeemed by the Company in whole at any time prior to maturity at a redemption price of 100% of the principal amount thereof plus accrued and unpaid interest to the date of redemption following receipt by the Trustee of written demand for redemption (a “Redemption Demand”) from an authorized representative of the Revenue Bond Trustee under the Revenue Bond Indenture stating that the principal amount of all the Revenue Bonds then outstanding under the Revenue Bond Indenture has been declared due and payable pursuant to the provisions of Section 11.02 of the Revenue Bond Indenture, specifying the date of the accelerated maturity of such Revenue Bonds and the date or dates from which interest on the Revenue Bonds has then accrued and is unpaid (specifying the rate or rates of such accrual and the principal amount of the particular Revenue Bonds to which such rates apply), stating such declaration of maturity has not been annulled and demanding payment of the principal amount of the Bonds of this series plus accrued interest thereon to the date fixed for such redemption. The date fixed for such redemption shall be set forth in the aforesaid Redemption Demand and shall not be earlier than the date specified in such Redemption Demand as the date of accelerated maturity of the Revenue Bonds then outstanding under the Revenue Bond Indenture and not later than forty-five days after the Trustee’s receipt of such Redemption Demand unless such forty-fifth day is earlier than such date of accelerated maturity.  The Revenue Bond Trustee as the sole holder of the Bonds of this series, and any successor thereto, hereby irrevocably waives any requirement of notice of such redemption under Section 5.04 of the Indenture.  Upon receipt of the aforesaid Redemption Demand, the earliest date from which unpaid interest on the Revenue Bonds has then accrued (as specified by the Revenue Bond Trustee in the Redemption Demand) shall become the initial interest accrual date (the “Initial Interest Accrual Date”) with respect to the Bonds of this series; provided, however, on any demand for payment of the principal amount thereof at maturity as a result of the principal of the Revenue Bonds becoming due and payable on the maturity date of the Bonds of this series, the earliest date from which unpaid interest on the Revenue Bonds has then accrued shall become the Initial Interest Accrual Date with respect to the Bonds of this series, such date, together with each other different date from 

which unpaid interest on the Revenue Bonds has then accrued, to be as stated in a written notice from the Revenue Bond Trustee to the Trustee, which notice shall also specify the rate or rates of such accrual and the principal amount of the particular Revenue Bonds to which such rate or rates apply.  Such redemption shall become null and void for all purposes under the Indenture (including the fixing of the Initial Interest Accrual Date with respect to the Bonds of this series) upon receipt by the Trustee of written notice from the Revenue Bond Trustee of the annulment of the acceleration of the maturity of the Revenue Bonds then outstanding under the Revenue Bond Indenture and of the rescission of the aforesaid Redemption Demand prior to the redemption date specified in the Redemption Demand, and thereupon no redemption of the Bonds of this series and no payment in respect thereof as specified in the Redemption Demand, shall be effected or required.  But no such rescission shall extend to any subsequent Redemption Demand from the Revenue Bond Trustee or impair any right consequent on any such subsequent Redemption Demand.
The “Revenue Bond Interest Rate” shall be the same rate of interest per annum as is borne by the Revenue Bonds; provided, however, that if there are different rates of interest borne by the Revenue Bonds, or if interest is required to be paid on the Revenue Bonds more frequently than on each March 15 or September 15, the Revenue Bond Interest Rate shall be the rate that results in the total amount of interest payable on an Interest Payment Date, a redemption date or at maturity, as the case may be, or at any other time interest on this Bond is due and payable, to be equal to the total amount of unpaid interest that has accrued on all then outstanding Revenue Bonds.
The principal of this Bond may be declared or may become due before the maturity hereof, on the conditions, in the manner and at the times set forth in the Indenture, upon the happening of an Event of Default as therein defined.

From and after the Release Date, the Bonds of this series shall be deemed fully paid, satisfied and discharged and the obligation of the Company thereunder shall be terminated.  On the Release Date or promptly following, the Bonds of this series shall be surrendered to and cancelled by the Trustee.

No recourse shall be had for the payment of the principal of or premium, or interest if any, on this Bond, or any part hereof, or for any claim based hereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, against any incorporator, stockholder, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any Constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability of incorporators, stockholders, officers and directors being released by the registered owner hereof by the acceptance of this Bond and being likewise waived and released by the terms of the Indenture.

This Bond is nontransferable except to (i) effect transfer to any successor to the Revenue Bond Trustee under the Revenue Bond Indenture, (ii) in connection with the exercise of the rights and remedies of the holder hereof consequent upon an “Event of Default” as defined in the Indenture or (iii) as may be necessary to comply with a final order of a court of competent jurisdiction in connection with any bankruptcy or reorganization proceeding of the Company.  But this Bond is exchangeable by the registered holder hereof, in person or by attorney duly authorized, at the Corporate Trust Office of the Trustee, any such permitted transfer or exchange to be made in the manner and upon the conditions prescribed in the Indenture, upon the surrender and cancellation of this Bond and the payment of any applicable taxes and fees required by law, and upon any such transfer or exchange a new registered Bond or Bonds of the same series and tenor, will be issued to the authorized transferee, or the registered holder, as the case may be. The Company and the Trustee may deem and treat the person in whose name this Bond is registered as the absolute owner for the purpose of receiving payment of or on account of the principal and interest due hereon and for all other purposes.

This Bond shall not be valid until authenticated by the manual signature of the Trustee, or a successor Trustee or Authenticating Agent appointed pursuant to the Indenture. 

IN WITNESS WHEREOF, the Company has caused this Bond to be executed in its name by the manual or facsimile signature of an Authorized Executive Officer and attested by the manual or facsimile signature of another Authorized Executive Officer.
Dated: September 15, 2016
FIRSTENERGY GENERATION, LLC
By:    
Name:  James F. Pearson
Title: Executive Vice President and Chief Financial Officer
Attest:
    
Name:  Ketan K. Patel
Title: Vice President and Corporate Secretary

 [FORM OF TRUSTEE’S AUTHENTICATION CERTIFICATE]

TRUSTEE’S AUTHENTICATION CERTIFICATE

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

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

By:    
Authorized Signatory

    

Exhibit C

[FORM OF FIRST MORTGAGE BOND OF GUARANTEE SERIES K]

This Bond is not transferable except (i) to a successor trustee under the Trust  Indenture, dated as of September 1, 2008 as amended, between the Beaver County Industrial Development Authority and The Bank of New York Mellon Trust Company, N.A., as trustee, referred to herein, (ii) in connection with the exercise of the rights and remedies of the holder hereof consequent upon an “Event of Default” as defined in the Indenture referred to herein or (iii) as may be necessary to comply with a final order of a court of competent jurisdiction in connection with any bankruptcy or reorganization proceeding of the Company.

FIRSTENERGY GENERATION, LLC
First Mortgage Bond, Guarantee Series K of 2016 due 2047
Due October 1, 2047
$46,300,000    No. R-1

FIRSTENERGY GENERATION, LLC (formerly known as FirstEnergy Generation Corp.), a limited liability company of the State of Ohio (herein, together with its successors and assigns, the “Company”), for value received promises to pay to The Bank of New York Mellon Trust Company, N.A., as trustee (the “Revenue Bond Trustee”) under that certain Trust Indenture, dated as of September 1, 2008 as amended, between the Beaver County Industrial Development Authority and the Revenue Bond Trustee, securing $46,300,000 of Beaver County Industrial Development Authority Pollution Control Revenue Refunding Bonds, Series 2008-B (FirstEnergy Generation Project) issued for the benefit of the Company (the “Revenue Bonds”) (such Trust Indenture, as amended from time to time, hereinafter the “Revenue Bond Indenture”), or registered assigns, on October 1, 2047, the principal sum of Forty Six Million Three Hundred Thousand Dollars, and to pay interest on the unpaid principal amount from the Initial Interest Accrual Date (as hereinafter defined) at the Revenue Bond Interest Rate (as hereinafter defined) per annum payable semi-annually on April 1 and October 1 in each year commencing on the April 1 or October 1 immediately succeeding the Initial Interest Accrual Date (each such date herein referred to as an “Interest Payment Date”) on and until maturity, or, in the case of any Bonds of this series duly called for redemption, on and until the redemption date, or in the case of any default by the Company in the payment of the principal due on any Bonds of this series, until the Company’s obligation with respect to the payment of such principal shall be discharged as provided in the Indenture (as hereinafter defined).  The interest on each Bond of this series so payable on any Interest Payment Date shall, subject to the exceptions provided in Section 3.07 of the Indenture, be paid to the person in whose name such Bond is registered on the date of such payment.  The principal of, and the interest on, this Bond shall be payable at the office or agency of the Company in the City of Cleveland, State of Ohio in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts.

This Bond is one of an issue of Bonds of the Company known as its First Mortgage Bonds, issued and to be issued in one or more series under and secured by an Open-End Mortgage, General Mortgage Indenture and Deed of Trust, dated as of June 19, 2008, duly executed by the Company to The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), a national banking association organized and existing under the laws of the United States of America, as Trustee (the “Trustee”), and indentures supplemental thereto, heretofore or hereafter executed, including the Eighth Supplemental Indenture dated as of August 15, 2016 (as amended, supplemented, modified or restated, the “Supplemental Indenture”), to which Open-End Mortgage, General Mortgage Indenture and Deed of Trust and all indentures supplemental thereto (collectively referred to as the “Indenture”) reference is hereby made for a description of the property mortgaged and pledged, the nature and extent of the security, the terms and conditions upon which such Bonds are, and are to be, issued and secured, and the rights of the owners of such Bonds and the Trustee in respect of such security.  As provided in the Indenture, such Bonds may be in various principal sums, are issuable in series, may mature at different times, may bear interest at different rates and may otherwise vary as therein provided; and this Bond is one Bond of a series entitled “First Mortgage Bonds, Guarantee Series K of 2016 due 2047,” created by the Supplemental Indenture, as provided for in the Indenture, and authorized for issuance in an aggregate principal amount of up to $46,300,000.
If and when the principal of any Revenue Bonds is paid, then there is deemed to be paid an equal principal amount of the Bonds of this series then outstanding; provided, however, that such payment of the Bonds of this series is deemed to be made only when and to the extent that notice of such payment of such Revenue Bonds is given by the Company to the Trustee.
The Bonds of this series shall have been delivered and pledged to the Revenue Bond Trustee pursuant to a Pledge Agreement, dated August 15, 2016, between the Company and the Revenue Bond Trustee (the “Pledge Agreement”), as security for the Revenue Bonds until the Release Date (as defined in the Pledge Agreement).  The Bonds of this series shall be redeemed by the Company in whole at any time prior to maturity at a redemption price of 100% of the principal amount thereof plus accrued and unpaid interest to the date of redemption following receipt by the Trustee of written demand for redemption (a “Redemption Demand”) from an authorized representative of the Revenue Bond Trustee under the Revenue Bond Indenture stating that the principal amount of all the Revenue Bonds then outstanding under the Revenue Bond Indenture has been declared due and payable pursuant to the provisions of Section 11.02 of the Revenue Bond Indenture, specifying the date of the accelerated maturity of such Revenue Bonds and the date or dates from which interest on the Revenue Bonds has then accrued and is unpaid (specifying the rate or rates of such accrual and the principal amount of the particular Revenue Bonds to which such rates apply), stating such declaration of maturity has not been annulled and demanding payment of the principal amount of the Bonds of this series plus accrued interest thereon to the date fixed for such redemption. The date fixed for such redemption shall be set forth in the aforesaid Redemption Demand and shall not be earlier than the date specified in such Redemption Demand as the date of accelerated maturity of the Revenue Bonds then outstanding under the Revenue Bond Indenture and not later than forty-five days after the Trustee’s receipt of such Redemption Demand unless such forty-fifth day is earlier than such date of accelerated maturity.  The Revenue Bond Trustee as the sole holder of the Bonds of this series, and any successor thereto, hereby irrevocably waives any requirement of notice of such redemption under Section 5.04 of the Indenture.  Upon receipt of the aforesaid Redemption Demand, the earliest date from which unpaid interest on the Revenue Bonds has then accrued (as specified by the Revenue Bond Trustee in the Redemption Demand) shall become the initial interest accrual date (the “Initial Interest Accrual Date”) with respect to the Bonds of this series; provided, however, on any demand for payment of the principal amount thereof at maturity as a result of the principal of the Revenue Bonds becoming due and payable on the maturity date of the Bonds of this series, the earliest 

date from which unpaid interest on the Revenue Bonds has then accrued shall become the Initial Interest Accrual Date with respect to the Bonds of this series, such date, together with each other different date from which unpaid interest on the Revenue Bonds has then accrued, to be as stated in a written notice from the Revenue Bond Trustee to the Trustee, which notice shall also specify the rate or rates of such accrual and the principal amount of the particular Revenue Bonds to which such rate or rates apply.  Such redemption shall become null and void for all purposes under the Indenture (including the fixing of the Initial Interest Accrual Date with respect to the Bonds of this series) upon receipt by the Trustee of written notice from the Revenue Bond Trustee of the annulment of the acceleration of the maturity of the Revenue Bonds then outstanding under the Revenue Bond Indenture and of the rescission of the aforesaid Redemption Demand prior to the redemption date specified in the Redemption Demand, and thereupon no redemption of the Bonds of this series and no payment in respect thereof as specified in the Redemption Demand, shall be effected or required.  But no such rescission shall extend to any subsequent Redemption Demand from the Revenue Bond Trustee or impair any right consequent on any such subsequent Redemption Demand.
The “Revenue Bond Interest Rate” shall be the same rate of interest per annum as is borne by the Revenue Bonds; provided, however, that if there are different rates of interest borne by the Revenue Bonds, or if interest is required to be paid on the Revenue Bonds more frequently than on each April 1 or October 1, the Revenue Bond Interest Rate shall be the rate that results in the total amount of interest payable on an Interest Payment Date, a redemption date or at maturity, as the case may be, or at any other time interest on this Bond is due and payable, to be equal to the total amount of unpaid interest that has accrued on all then outstanding Revenue Bonds.

The principal of this Bond may be declared or may become due before the maturity hereof, on the conditions, in the manner and at the times set forth in the Indenture, upon the happening of an Event of Default as therein defined.

From and after the Release Date, the Bonds of this series shall be deemed fully paid, satisfied and discharged and the obligation of the Company thereunder shall be terminated.  On the Release Date or promptly following, the Bonds of this series shall be surrendered to and cancelled by the Trustee.

No recourse shall be had for the payment of the principal of or premium, or interest if any, on this Bond, or any part hereof, or for any claim based hereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, against any incorporator, stockholder, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any Constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability of incorporators, stockholders, officers and directors being released by the registered owner hereof by the acceptance of this Bond and being likewise waived and released by the terms of the Indenture.

This Bond is nontransferable except to (i) effect transfer to any successor to the Revenue Bond Trustee under the Revenue Bond Indenture, (ii) in connection with the exercise of the rights and remedies of the holder hereof consequent upon an “Event of Default” as defined in the Indenture or (iii) as may be necessary to comply with a final order of a court of competent jurisdiction in connection with any bankruptcy or reorganization proceeding of the Company.  But this Bond is exchangeable by the registered holder hereof, in person or by attorney duly authorized, at the Corporate Trust Office of the Trustee, any such permitted transfer or exchange to be made in the manner and upon the conditions prescribed in the Indenture, upon the surrender and cancellation of this Bond and the payment of any applicable taxes and fees required by law, and upon any such transfer or exchange a new registered Bond or Bonds of the same series and tenor, will be issued to the authorized transferee, or the registered holder, as the case may be. The Company and the 

Trustee may deem and treat the person in whose name this Bond is registered as the absolute owner for the purpose of receiving payment of or on account of the principal and interest due hereon and for all other purposes.

This Bond shall not be valid until authenticated by the manual signature of the Trustee, or a successor Trustee or Authenticating Agent appointed pursuant to the Indenture. 

IN WITNESS WHEREOF, the Company has caused this Bond to be executed in its name by the manual or facsimile signature of an Authorized Executive Officer and attested by the manual or facsimile signature of another Authorized Executive Officer.
Dated: August 15, 2016
FIRSTENERGY GENERATION, LLC
By:    
Name:  James F. Pearson
Title:  Executive Vice President and Chief Financial Officer
Attest:
    
Name:  Ketan K. Patel
Title:  Vice President and Corporate Secretary

 [FORM OF TRUSTEE’S AUTHENTICATION CERTIFICATE]

TRUSTEE’S AUTHENTICATION CERTIFICATE

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

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

By:    
Authorized Signatory

    

Exhibit D

[FORM OF FIRST MORTGAGE BOND OF GUARANTEE SERIES L]

This Bond is not transferable except (i) to a successor trustee under the Amended and Restated Trust  Indenture, dated November 1, 2012, between the Pennsylvania Economic Development Financing Authority and The Bank of New York Mellon Trust Company, N.A., as trustee, referred to herein, (ii) in connection with the exercise of the rights and remedies of the holder hereof consequent upon an “Event of Default” as defined in the Indenture referred to herein or (iii) as may be necessary to comply with a final order of a court of competent jurisdiction in connection with any bankruptcy or reorganization proceeding of the Company.

FIRSTENERGY GENERATION, LLC
First Mortgage Bond, Guarantee Series L of 2016 due 2028
Due June 1, 2028
$15,000,000    No. R-1

FIRSTENERGY GENERATION, LLC (formerly known as FirstEnergy Generation Corp.), a limited liability company of the State of Ohio (herein, together with its successors and assigns, the “Company”), for value received promises to pay to The Bank of New York Mellon Trust Company, N.A., as trustee (the “Revenue Bond Trustee”) under that certain Amended and Restated Trust Indenture, dated November 1, 2012, between the Pennsylvania Economic Development Financing Authority and the Revenue Bond Trustee, securing $15,000,000 of Exempt Facilities Revenue Bonds, Series 2002 A (Shippingport Project) issued for the benefit of the Company (the “Revenue Bonds”) (such Trust Indenture, as amended from time to time, hereinafter the “Revenue Bond Indenture”), or registered assigns, on June 1, 2028, the principal sum of Fifteen Million Dollars, and to pay interest on the unpaid principal amount from the Initial Interest Accrual Date (as hereinafter defined) at the Revenue Bond Interest Rate (as hereinafter defined) per annum payable semi-annually on June 1 and December 1 in each year commencing on the June 1 or December 1 immediately succeeding the Initial Interest Accrual Date (each such date herein referred to as an “Interest Payment Date”) on and until maturity, or, in the case of any Bonds of this series duly called for redemption, on and until the redemption date, or in the case of any default by the Company in the payment of the principal due on any Bonds of this series, until the Company’s obligation with respect to the payment of such principal shall be discharged as provided in the Indenture (as hereinafter defined).  The interest on each Bond of this series so payable on any Interest Payment Date shall, subject to the exceptions provided in Section 3.07 of the Indenture, be paid to the person in whose name such Bond is registered on the date of such payment.  The principal of, and the interest on, this Bond shall be payable at the office or agency of the Company in the City of Cleveland, State of Ohio in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts.
This Bond is one of an issue of Bonds of the Company known as its First Mortgage Bonds, issued and to be issued in one or more series under and secured by an Open-End Mortgage, General Mortgage Indenture and Deed of Trust, dated as of June 19, 2008, duly executed by the Company to The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), a national banking association organized and existing under the laws of the United States of America, as Trustee (the “Trustee”), and indentures supplemental thereto, heretofore or hereafter executed, including the Eighth 

Supplemental Indenture dated as of August 15, 2016 (as amended, supplemented, modified or restated, the “Supplemental Indenture”), to which Open-End Mortgage, General Mortgage Indenture and Deed of Trust and all indentures supplemental thereto (collectively referred to as the “Indenture”) reference is hereby made for a description of the property mortgaged and pledged, the nature and extent of the security, the terms and conditions upon which such Bonds are, and are to be, issued and secured, and the rights of the owners of such Bonds and the Trustee in respect of such security.  As provided in the Indenture, such Bonds may be in various principal sums, are issuable in series, may mature at different times, may bear interest at different rates and may otherwise vary as therein provided; and this Bond is one Bond of a series entitled “First Mortgage Bonds, Guarantee Series L of 2016 due 2028,” created by the Supplemental Indenture, as provided for in the Indenture, and authorized for issuance in an aggregate principal amount of up to $15,000,000.
If and when the principal of any Revenue Bonds is paid, then there is deemed to be paid an equal principal amount of the Bonds of this series then outstanding; provided, however, that such payment of the Bonds of this series is deemed to be made only when and to the extent that notice of such payment of such Revenue Bonds is given by the Company to the Trustee.
The Bonds of this series shall have been delivered and pledged to the Revenue Bond Trustee pursuant to a Pledge Agreement, dated August 15, 2016, between the Company and the Revenue Bond Trustee (the “Pledge Agreement”), as security for the Revenue Bonds until the Release Date (as defined in the Pledge Agreement).  The Bonds of this series shall be redeemed by the Company in whole at any time prior to maturity at a redemption price of 100% of the principal amount thereof plus accrued and unpaid interest to the date of redemption following receipt by the Trustee of written demand for redemption (a “Redemption Demand”) from an authorized representative of the Revenue Bond Trustee under the Revenue Bond Indenture stating that the principal amount of all the Revenue Bonds then outstanding under the Revenue Bond Indenture has been declared due and payable pursuant to the provisions of Section 11.02 of the Revenue Bond Indenture, specifying the date of the accelerated maturity of such Revenue Bonds and the date or dates from which interest on the Revenue Bonds has then accrued and is unpaid (specifying the rate or rates of such accrual and the principal amount of the particular Revenue Bonds to which such rates apply), stating such declaration of maturity has not been annulled and demanding payment of the principal amount of the Bonds of this series plus accrued interest thereon to the date fixed for such redemption. The date fixed for such redemption shall be set forth in the aforesaid Redemption Demand and shall not be earlier than the date specified in such Redemption Demand as the date of accelerated maturity of the Revenue Bonds then outstanding under the Revenue Bond Indenture and not later than forty-five days after the Trustee’s receipt of such Redemption Demand unless such forty-fifth day is earlier than such date of accelerated maturity.  The Revenue Bond Trustee as the sole holder of the Bonds of this series, and any successor thereto, hereby irrevocably waives any requirement of notice of such redemption under Section 5.04 of the Indenture.  Upon receipt of the aforesaid Redemption Demand, the earliest date from which unpaid interest on the Revenue Bonds has then accrued (as specified by the Revenue Bond Trustee in the Redemption Demand) shall become the initial interest accrual date (the “Initial Interest Accrual Date”) with respect to the Bonds of this series; provided, however, on any demand for payment of the principal amount thereof at maturity as a result of the principal of the Revenue Bonds becoming due and payable on the maturity date of the Bonds of this series, the earliest date from which unpaid interest on the Revenue Bonds has then accrued shall become the Initial Interest Accrual Date with respect to the Bonds of this series, such date, together with each other different date from which unpaid interest on the Revenue Bonds has then accrued, to be as stated in a written notice from the Revenue Bond Trustee to the Trustee, which notice shall also specify the rate or rates of such accrual and the principal amount of the particular Revenue Bonds to which such rate or rates apply.  Such redemption shall become null and void for all purposes under the Indenture (including the fixing of the Initial Interest Accrual Date with respect to the Bonds of this series) upon receipt by the Trustee of written notice from the Revenue Bond Trustee of the annulment of the acceleration of the maturity of the Revenue Bonds then 

outstanding under the Revenue Bond Indenture and of the rescission of the aforesaid Redemption Demand prior to the redemption date specified in the Redemption Demand, and thereupon no redemption of the Bonds of this series and no payment in respect thereof as specified in the Redemption Demand, shall be effected or required.  But no such rescission shall extend to any subsequent Redemption Demand from the Revenue Bond Trustee or impair any right consequent on any such subsequent Redemption Demand.
The “Revenue Bond Interest Rate” shall be the same rate of interest per annum as is borne by the Revenue Bonds; provided, however, that if there are different rates of interest borne by the Revenue Bonds, or if interest is required to be paid on the Revenue Bonds more frequently than on each June 1 or December 1, the Revenue Bond Interest Rate shall be the rate that results in the total amount of interest payable on an Interest Payment Date, a redemption date or at maturity, as the case may be, or at any other time interest on this Bond is due and payable, to be equal to the total amount of unpaid interest that has accrued on all then outstanding Revenue Bonds.

The principal of this Bond may be declared or may become due before the maturity hereof, on the conditions, in the manner and at the times set forth in the Indenture, upon the happening of an Event of Default as therein defined.

From and after the Release Date, the Bonds of this series shall be deemed fully paid, satisfied and discharged and the obligation of the Company thereunder shall be terminated.  On the Release Date or promptly following, the Bonds of this series shall be surrendered to and cancelled by the Trustee.

No recourse shall be had for the payment of the principal of or premium, or interest if any, on this Bond, or any part hereof, or for any claim based hereon or otherwise in respect hereof, or of the indebtedness represented hereby, or upon any obligation, covenant or agreement under the Indenture, against any incorporator, stockholder, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any Constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability of incorporators, stockholders, officers and directors being released by the registered owner hereof by the acceptance of this Bond and being likewise waived and released by the terms of the Indenture.

This Bond is nontransferable except to (i) effect transfer to any successor to the Revenue Bond Trustee under the Revenue Bond Indenture, (ii) in connection with the exercise of the rights and remedies of the holder hereof consequent upon an “Event of Default” as defined in the Indenture or (iii) as may be necessary to comply with a final order of a court of competent jurisdiction in connection with any bankruptcy or reorganization proceeding of the Company.  But this Bond is exchangeable by the registered holder hereof, in person or by attorney duly authorized, at the Corporate Trust Office of the Trustee, any such permitted transfer or exchange to be made in the manner and upon the conditions prescribed in the Indenture, upon the surrender and cancellation of this Bond and the payment of any applicable taxes and fees required by law, and upon any such transfer or exchange a new registered Bond or Bonds of the same series and tenor, will be issued to the authorized transferee, or the registered holder, as the case may be. The Company and the Trustee may deem and treat the person in whose name this Bond is registered as the absolute owner for the purpose of receiving payment of or on account of the principal and interest due hereon and for all other purposes.

This Bond shall not be valid until authenticated by the manual signature of the Trustee, or a successor Trustee or Authenticating Agent appointed pursuant to the Indenture. 

IN WITNESS WHEREOF, the Company has caused this Bond to be executed in its name by the manual or facsimile signature of an Authorized Executive Officer and attested by the manual or facsimile signature of another Authorized Executive Officer.
Dated: August 15, 2016
FIRSTENERGY GENERATION, LLC
By:    
Name:  James F. Pearson
Title:  Executive Vice President and Chief Financial Officer
Attest:
    
Name:  Ketan K. Patel
Title:  Vice President and Corporate Secretary

 [FORM OF TRUSTEE’S AUTHENTICATION CERTIFICATE]

TRUSTEE’S AUTHENTICATION CERTIFICATE

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

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

By:    
Authorized Signatory

	
				
	Schedule 1

Filing Offices For the Original Indenture

	Plant 
	Jurisdiction/Filing Office 
	Recording Information
	Date filed

	Ashtabula Plant
	Ashtabula County - Office of the County Recorder of Ashtabula County, Ohio
	Instrument No. 200800007364 

Volume 436 Page 1732

	06/27/2008

	Bay Shore Plant 
	Lucas County - Office of the County Recorder of Lucas County, Ohio
	Instrument No.
20080627-0032756

	06/27/2008

	Bruce Mansfield Plant 
	Beaver County - Office of the County Recorder of Beaver County, Pennsylvania
	Instrument No.
3326465
	06/27/2008

	Burger Plant 
	Belmont County - Office of the County Recorder of Belmont County, Ohio
	Instrument No. 200800004786

Volume 0157 Page 172

	06/27/2008

	Eastlake Plant 
	Lake County - Office of the County Recorder of Lake County, Ohio
	Instrument No.
2008R018408

	06/27/2008

	Edgewater Plant and West Lorain Plant
	Lorain County - Office of the County Recorder of Lorain County, Ohio
	Instrument No.
2008-0259135

	06/27/2008

	Fremont Plant 
	Sandusky County - Office of the County Recorder of Sandusky County, Ohio

	Instrument No.
200800004585

Official Record Book 66 Page 708
	06/27/2008

	Lake Shore Plant
	Cuyahoga County - Office of the County Recorder of Cuyahoga County, Ohio
	Instrument No.
200806270329

	06/27/2008

	Mad River Plant
	Clark County - Office of the County Recorder of Clark County, Ohio
	Instrument No.
200800010888
Official Record Volume 1852 Page 1946
Instrument No. 200800011009
Official Record Volume 1853 Page 18
	06/27/2008

06/30/2008
(Re-recorded)

	Richland Plant 
	Defiance County - Office of the County Recorder of Defiance County, Ohio
	Instrument No.
200800003811

Official Record Book 327 Page 482
	06/27/2008

	Sammis Plant 
	Jefferson County - Office of the County Recorder of Jefferson County, Ohio
	Instrument No. 232633

Official Record Volume 851 Page 344

	06/27/2008

	Seneca Plant 
	Warren County - Office of the County Recorder of Warren County, Pennsylvania
	Instrument No. 2008-2962

	06/27/2008

	Stryker Plant 
	Williams County - Office of the County Recorder of Williams County, Ohio
	Instrument No.
200800082091

Official Record Book 0240 Page 0516
	06/27/2008Exhibit 4.1

 

THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED
OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR NAC GLOBAL TECHNOLOGIES, INC. SHALL
HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF
APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

 

WARRANT
TO PURCHASE SHARES OF COMMON STOCK OF

 

NAC
GLOBAL TECHNOLOGIES, INC.

 

Expires
August 12, 2026

 

	No.: W-1	Number of Shares: 457,151,579

 

Date
of Issuance: August 12, 2016

 

FOR
VALUE RECEIVED, subject to the provisions hereinafter set forth, the undersigned, NAC Global Technologies, Inc.., a Nevada corporation
(together with its successors and assigns, the “Issuer”), hereby certifies that AM Dream Holding LLC or its
registered assigns is entitled to subscribe for and purchase, during the period specified in this Warrant, up to Four Hundred
Fifty-Seven Million One Hundred Fifty-One Thousand and Five Hundred Seventy-Nine (457,151,579) shares (subject to adjustment as
hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Common Stock of the Issuer, at an
exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and
conditions hereinafter set forth. Capitalized terms used in this Warrant and not otherwise defined herein shall have the respective
meanings specified in Section 7 hereof.

 

1.Term.
The right to subscribe for and purchase shares of Warrant Stock represented hereby shall commence on the date of issuance, and
shall expire at 5:00 p.m., Eastern Time, on August 12, 2026 (such period being the “Term”).

 

2.Method
of Exercise Payment; Issuance of New Warrant; Transfer and Exchange.

 

(a)Time
of Exercise. The purchase rights represented by this Warrant may be exercised in whole or in part at any time and from time
to time during the Term.

 

(b)Method
of Exercise. The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the
exercise form attached hereto duly executed) at the principal office of the Issuer, and by the payment to the Issuer of an amount
of consideration therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares
of Warrant Stock with respect to which this Warrant is then being exercised, payable at such Holder’s election (i) by certified
or official bank check or by wire transfer to an account designated by the Issuer, (ii) by “cashless exercise” in
accordance with the provisions of subsection (c) of this Section 2, or (iii) by a combination of the foregoing methods
of payment selected by the Holder of this Warrant.

 

     

     

    

 

(c)Cashless
Exercise. Notwithstanding any provisions herein to the contrary, if the Per Share Market Value of one share of Common Stock
is greater than the Warrant Price (at the date of calculation as set forth below), in lieu of exercising this Warrant by payment
of cash, the Holder may exercise this Warrant by a cashless exercise and shall receive the number of shares of Common Stock equal
to an amount (as determined below) by surrender of this Warrant at the principal office of the Issuer together with the properly
endorsed Notice of Exercise in which event the Issuer shall issue to the Holder a number of shares of Common Stock computed using
the following formula:

 

	 	X
    =	Y
    - (A)(Y)
	 	 	          B
	 	 	 
	Where:	X=	the
    number of shares of Common Stock to be issued to the Holder.
	 	 	 
	 	Y
    =	the
    number of shares of Common Stock purchasable upon exercise of all of the Warrant or, if only a portion of the Warrant is being
    exercised, the portion of the Warrant being exercised.
	 	 	 
	 	A
    =	the
    Warrant Price.
	 	 	 
	 	B
    =	the
    Per Share Market Value of one share of Common Stock.

 

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

 

(d)Issuance
of Stock Certificates. In the event of any exercise of the rights represented by this Warrant in accordance with and subject
to the terms and conditions hereof, (i) certificates for the shares of Warrant Stock so purchased shall be dated the date of such
exercise and delivered to the Holder hereof within a reasonable time, not exceeding three (3) Trading Days after such exercise
(the “Delivery Date”) or, if the Issuer’s Securities are eligible for such manner of delivery, then at
the request of the Holder, issued and delivered to the Depository Trust Company (“DTC”) account on the Holder’s
behalf via the Deposit Withdrawal Agent Commission System (“DWAC”), within a reasonable time, not exceeding
three (3) Trading Days after such exercise, and the Holder hereof shall be deemed for all purposes to be the Holder of the shares
of Warrant Stock so purchased as of the date of such exercise and (ii) unless this Warrant has expired, a new Warrant representing
the number of shares of Warrant Stock, if any, with respect to which this Warrant shall not then have been exercised (less any
amount thereof which shall have been canceled in payment or partial payment of the Warrant Price as hereinabove provided) shall
also be issued to the Holder hereof at the Issuer’s expense within such time.

 

(e)Transferability
of Warrant. Subject to Section 2(g), this Warrant may be transferred, in whole or in part, by a Holder without the consent
of the Issuer. If transferred pursuant to this paragraph, this Warrant may be transferred on the books of the Issuer by the Holder
hereof in person or by the Holder’s duly authorized attorney, upon surrender of this Warrant at the principal office of
the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any necessary
transfer tax or other governmental charge imposed upon such transfer. This Warrant is exchangeable at the principal office of
the Issuer for Warrants for the purchase of the same aggregate number of shares of Warrant Stock, each new Warrant to represent
the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange.
All Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant
except as to the number of shares of Warrant Stock issuable pursuant thereto.

 

    	 	2	 

     

    

 

(f)Continuing
Rights of Holder. The Issuer will, at the time of or at any time after each exercise of this Warrant, upon the request of
the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights
to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant, provided
that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the
Issuer to afford such rights to such Holder.

 

(g)Compliance
with Securities Laws.

 

(i)The
Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon
exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for
investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be
issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the
Securities Act and any applicable state securities laws.

 

(ii)Except
as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Warrant Stock issued upon exercise
hereof shall be stamped or imprinted with a legend in substantially the following form:

 

THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED
OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN
OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED.

 

(iii)The
restrictions imposed by this subsection (g) upon the transfer of this Warrant or the shares of Warrant Stock to be purchased upon
exercise hereof shall terminate (A) when such securities shall have been resold pursuant to an effective registration statement
under the Securities Act, (B) upon the Issuer’s receipt of an opinion of counsel, in form and substance reasonably satisfactory
to the Issuer, addressed to the Issuer to the effect that such restrictions are no longer required to ensure compliance with the
Securities Act and state securities laws, or (C) upon the Issuer’s receipt of other evidence reasonably satisfactory to
the Issuer that such registration and qualification under the Securities Act and state securities laws are not required. Whenever
such restrictions shall cease and terminate as to any such securities, the Holder thereof shall be entitled to receive from the
Issuer (or its transfer agent and registrar), without expense (other than applicable transfer taxes, if any), new Warrants (or,
in the case of shares of Warrant Stock, new stock certificates) of like tenor not bearing the applicable legend required by paragraph
(ii) above relating to the Securities Act and state securities laws.

 

(h)Buy
In. In addition to any other rights available to the Holder, if the Issuer fails to cause its transfer agent to transmit to
the Holder a certificate or certificates representing the Warrant Stock pursuant to an exercise on or before the Delivery Date
(or, in the case of any exercise of this Warrant after the six (6) month anniversary of the Original Issue Date, any such certificate
representing Warrant Stock contains any legend restricting transfer (including any legend set forth in Section 2(g)(ii) above)),
and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Stock which the Holder anticipated receiving upon
such exercise (a “Buy-In”), then the Issuer shall (i) pay in cash to the Holder the amount by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds
(y) the amount obtained by multiplying (A) the number of shares of Warrant Stock that the Issuer was required to deliver to the
Holder in connection with the exercise at issue times, by (B) the price at which the sell order giving rise to such purchase obligation
was executed, and (ii) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of shares
of Warrant Stock for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would
have been issued had the Issuer timely complied with its exercise and delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares
of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (i) of the immediately
preceding sentence the Issuer shall be required to pay the Holder $1,000. The Holder shall provide the Issuer written notice indicating
the amounts payable to the Holder in respect of the Buy-In, together with applicable confirmations and other evidence reasonably
requested by the Issuer. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Issuer’s failure to timely deliver certificates representing shares of Common Stock upon exercise of this Warrant as required
pursuant to the terms hereof.

 

    	 	3	 

     

    

 

3.Stock
Fully Paid; Reservation and Listing of Shares; Covenants.

 

(a)Stock
Fully Paid. The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which may be issued upon
the exercise of this Warrant or otherwise hereunder will, upon issuance, be duly authorized, validly issued, fully paid and non-assessable
and free from all taxes, liens and charges created by or through Issuer. Subject to the provisions of the last two sentences of
this Section 3(a), the Issuer further covenants and agrees that during the period within which this Warrant may be exercised,
the Issuer will at all times have authorized and reserved for the purpose of the issue upon exercise of this Warrant a number
of shares of Common Stock equal to at least 100% of the aggregate number of shares of Common Stock exercisable hereunder to provide
for the exercise of this Warrant. Notwithstanding the foregoing, the Holder hereby acknowledges that the number of authorized
shares of Common Stock under the Issuer’s Articles of Incorporation as of the date hereof that have not yet been issued
are less than the total number of shares of Common Stock required to issue all of the Warrant Stock and all shares of Common Stock
issuable upon conversion or exercise of other outstanding Securities that are directly or indirectly convertible into or exercisable
for Common Stock. The Issuer hereby agrees, as soon as practicable after the date hereof, to amend its Articles of Incorporation,
subject to stockholder approval, to effect a reverse stock split of its issued and outstanding shares of Common Stock without
decreasing its number of authorized shares, following which the Issuer will have a sufficient number of authorized but unissued
shares of Common Stock for the issuance of all of the Warrant Stock upon exercise of the Warrants and all shares of Common Stock
issuable upon conversion or exercise of other outstanding Securities that are directly or indirectly convertible into or exercisable
for Common Stock.

 

(b)Reservation.
If any shares of Common Stock required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any Governmental Authority under any federal or state law before such shares may be
so issued, the Issuer will in good faith use its best efforts as expeditiously as possible at its expense to cause such shares
to be duly registered or qualified. If the Issuer shall list any shares of Common Stock on any securities exchange or market it
will, at its expense, list thereon, maintain and increase when necessary such listing, of, all shares of Warrant Stock from time
to time issued upon exercise of this Warrant or as otherwise provided hereunder, and, to the extent permissible under the applicable
securities exchange’s rules, all unissued shares of Warrant Stock which are at any time issuable hereunder, so long as any
shares of Common Stock shall be so listed. The Issuer will also so list on each securities exchange or market, and will maintain
such listing of, any other securities which the Holder of this Warrant shall be entitled to receive upon the exercise of this
Warrant if at the time any securities of the same class shall be listed on such securities exchange or market by the Issuer.

 

    	 	4	 

     

    

 

(c)Covenants.
The Issuer shall not by any action including, without limitation, amending the Articles of Incorporation or the by-laws of the
Issuer, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or
any other action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate
to protect the rights of the Holder hereof against dilution (to the extent specifically provided herein) or impairment. Without
limiting the generality of the foregoing, the Issuer will (i) not amend or modify any provision of the Articles of Incorporation
or by-laws of the Issuer in any manner that would adversely affect the rights of the Holders of the Warrants, (ii) take all such
action as may be reasonably necessary in order that the Issuer may validly and legally issue fully paid and nonassessable shares
of Common Stock, free and clear of any liens, claims, encumbrances and restrictions (other than as provided herein) upon the exercise
of this Warrant, and (iii) use its best efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof as may be reasonably necessary to enable the Issuer to perform its obligations under this Warrant.

 

(d)Loss,
Theft, Destruction of Warrants. Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft,
destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or
security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the
Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing
the right to purchase the same number of shares of Common Stock.

 

4.Adjustment
of Warrant Price and Warrant Share Number. The number of shares of Common Stock for which this Warrant is exercisable, and
the price at which such shares may be purchased upon exercise of this Warrant, shall be subject to adjustment from time to time
as set forth in this Section 4. The Issuer shall give the Holder notice of any event described below which requires an adjustment
pursuant to this Section 4 in accordance with Section 5.

 

(a)Recapitalization,
Reorganization, Reclassification, Consolidation, Merger or Sale.

 

(i)In
case the Issuer after the Original Issue Date shall do any of the following (each, a “Triggering Event”): (a)
consolidate with or merge into any other Person and the Issuer shall not be the continuing or surviving corporation of such consolidation
or merger, or (b) permit any other Person to consolidate with or merge into the Issuer and the Issuer shall be the continuing
or surviving Person but, in connection with such consolidation or merger, the Common Stock shall be changed into or exchanged
for Securities of any other Person or cash or any other property, or (c) transfer all or substantially all of the assets of the
Issuer and its Subsidiaries, taken as a whole, to any other Person (other than a Subsidiary) in connection with which the Issuer
is dissolved, or (d) effect a capital reorganization or reclassification of the Common Stock, then, and in the case of each such
Triggering Event, proper provision shall be made so that, upon the basis and the terms and in the manner provided in this Warrant,
the Holder of this Warrant shall be entitled upon the exercise hereof at any time after the consummation of such Triggering Event,
to the extent this Warrant is not exercised prior to such Triggering Event, to receive at the Warrant Price in effect at the time
immediately prior to the consummation of such Triggering Event in lieu of the Common Stock issuable upon such exercise of this
Warrant prior to such Triggering Event, the Securities, cash and property to which such Holder would have been entitled upon the
consummation of such Triggering Event if such Holder had exercised the rights represented by this Warrant immediately prior thereto
(including the right to elect the type of consideration, if applicable), subject to adjustments (subsequent to such corporate
action) as nearly equivalent as possible to the adjustments provided for elsewhere in this Section 4. Unless the surviving entity
in any such Triggering Event is a public company under the Exchange Act, the common equity securities of which are traded or quoted
on a national securities exchange or the OTC Bulletin Board (a “Qualifying Entity”), the Holder, at its option,
shall be permitted to require that the Issuer pay to the Holder an amount equal to the Black-Scholes value of this Warrant.

 

    	 	5	 

     

    

 

(ii)Notwithstanding
anything contained in this Warrant to the contrary and so long as the surviving entity is a Qualifying Entity, the Issuer will
not be deemed to have effected any Triggering Event if, prior to the consummation thereof, each Person (other than the Issuer)
which may be required to deliver any Securities, cash or property upon the exercise of this Warrant as provided herein shall assume,
by written instrument delivered to the Holder of this Warrant and reasonably satisfactory to the Holder, (A) the obligations of
the Issuer under this Warrant (and if the Issuer shall survive the consummation of such Triggering Event, such assumption shall
be in addition to, and shall not release the Issuer from, any continuing obligations of the Issuer under this Warrant) and (B)
the obligation to deliver to such Holder such shares of Securities, cash or property as, in accordance with the foregoing provisions
of this subsection (a), such Holder shall be entitled to receive, and such Person shall have similarly delivered to such Holder,
an opinion of counsel for such Person, which shall be reasonably satisfactory to the Holder, stating that this Warrant shall thereafter
continue in full force and effect and the terms hereof (including, without limitation, all of the provisions of this subsection
(a)) shall be applicable to the Securities, cash or property which such Person may be required to deliver upon any exercise of
this Warrant or the exercise of any rights pursuant hereto.

 

(b)Stock
Dividends, Subdivisions and Combinations. If at any time the Issuer shall:

 

(i)set
a record date or take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend payable
in, or other distribution of, shares of Common Stock,

 

(ii)subdivide
its outstanding shares of Common Stock into a larger number of shares of Common Stock, or

 

(iii)combine
its outstanding shares of Common Stock into a smaller number of shares of Common Stock,

 

then
(1) the number of shares of Common Stock for which this Warrant is exercisable immediately after the occurrence of any such event
shall be adjusted to equal the number of shares of Common Stock which a record holder of the same number of shares of Common Stock
for which this Warrant is exercisable immediately prior to the occurrence of such event would own or be entitled to receive after
the happening of such event and (2) the Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price then in
effect multiplied by the number of shares of Common Stock for which this Warrant is exercisable immediately prior to the adjustment
divided by (B) the number of shares of Common Stock for which this Warrant is exercisable immediately after such adjustment .

 

    	 	6	 

     

    

 

(c)Certain
Other Distributions. If at any time the Issuer shall set a record date or take a record of the holders of its Common Stock
for the purpose of entitling them to receive any dividend or other distribution of:

 

(i)cash
(other than a cash dividend payable out of earnings or earned surplus legally available for the payment of dividends under the
laws of the jurisdiction of incorporation of the Issuer),

 

(ii)any
evidences of its indebtedness, any shares of stock of any class or any other securities or property of any nature whatsoever (other
than cash or Common Stock), or

 

(iii)any
warrants or other rights to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any
other securities or property of any nature whatsoever (other than cash or Common Stock),

 

then
the Warrant Price shall be decreased, effective immediately after the effective date of such distribution, by the amount of cash
and/or the fair market value (as determined by the Board, in good faith) of any securities or other assets paid on each share
of Common Stock in respect of such distribution. A reclassification of the Common Stock (other than a change in par value, or
from par value to no par value or from no par value to par value) into shares of Common Stock and shares of any other class of
stock shall be deemed a distribution by the Issuer to the holders of its Common Stock of such shares of such other class of stock
within the meaning of this Section 4(c) and, if the outstanding shares of Common Stock shall be changed into a larger or smaller
number of shares of Common Stock as a part of such reclassification, such change shall be deemed a subdivision or combination,
as the case may be, of the outstanding shares of Common Stock within the meaning of Section 4(b).

 

(d)Other
Provisions applicable to Adjustments under this Section. The following provisions shall be applicable to the making of adjustments
of the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect provided for
in this Section 4:

 

(i)Fractional
Interests. In computing adjustments under this Section 4, fractional interests in Common Stock shall be taken into account
to the nearest one one-thousandth (1/1,000th) of a share.

 

(ii)When
Adjustment Not Required. If the Issuer shall take a record of the holders of its Common Stock for the purpose of entitling
them to receive a dividend or distribution or subscription or purchase rights and shall, thereafter and before the distribution
to stockholders thereof, legally abandon its plan to pay or deliver such dividend, distribution, subscription or purchase rights,
then thereafter no adjustment shall be required by reason of the taking of such record and any such adjustment previously made
in respect thereof shall be rescinded and annulled.

 

(e)Form
of Warrant after Adjustments. The form of this Warrant need not be changed because of any adjustments in the Warrant Price
or the number and kind of securities purchasable upon exercise of this Warrant.

 

(f)Escrow
of Property. If after any property becomes distributable pursuant to this Section 4 by reason of the taking of any record
of the holders of Common Stock, but prior to the occurrence of the event for which such record is taken, and the Holder exercises
this Warrant, such property shall be held in escrow for the Holder by the Issuer to be distributed to the Holder upon and to the
extent that the event actually takes place, upon payment of the then current Warrant Price. Notwithstanding any other provision
to the contrary herein, if the event for which such record was taken fails to occur or is rescinded, then such escrowed property
shall be returned to the Issuer.

 

    	 	7	 

     

    

 

5.Notice
of Adjustments. Whenever the Warrant Price or Warrant Share Number shall be adjusted pursuant to Section 4 hereof (for purposes
of this Section 5, each an “adjustment”), the Issuer shall cause its Chief Financial Officer to prepare and execute
a certificate setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method
by which such adjustment was calculated (including a description of the basis on which the Board made any determination hereunder),
and the Warrant Price and Warrant Share Number after giving effect to such adjustment, and shall cause copies of such certificate
to be delivered to the Holder of this Warrant promptly after each adjustment. Any dispute between the Issuer and the Holder of
this Warrant with respect to the matters set forth in such certificate may at the option of the Holder of this Warrant be submitted
to one of the national accounting firms currently known as the “big four” selected by the Holder, provided, that the
Issuer shall have ten (10) days after receipt of notice from such Holder of its selection of such firm to object thereto, in which
case such Holder shall select another such firm and the Issuer shall have no such right of objection, and provided further that
all costs of such engagement shall be borne by the Issuer. The firm selected by the Holder of this Warrant as provided in the
preceding sentence shall be instructed to deliver a written opinion as to such matters to the Issuer and such Holder within thirty
(30) days after submission to it of such dispute. Such opinion shall be final and binding on the parties hereto.

 

6.Fractional
Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu of such fractional
shares, the Issuer shall at its option either (a) make a cash payment therefor equal in amount to the product of the applicable
fraction multiplied by the Per Share Market Value then in effect or (b) issue one whole share in lieu of such fractional share.

 

7.Definitions.
For the purposes of this Warrant, the following terms have the following meanings:

 

“Articles
of Incorporation” means the Amended and Restated Articles of Incorporation of the Issuer, as amended, as in effect on
the Original Issue Date, and as hereafter from time to time amended, modified, supplemented or restated in accordance with the
terms hereof and thereof and pursuant to applicable law.

 

“Board”
means the Board of Directors of the Issuer.

 

“Business
Day” means, even if not capitalized, any day banking transactions can be conducted in New York City, New York, and does
not include any day which is a federal or state holiday in New York City, New York.

 

“Capital
Stock” means and includes (i) any and all shares, interests, participations or other equivalents of or interests in
(however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership
interests (whether general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability
company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.

 

“Common
Stock” means the common stock, par value $0.001 per share, of the Issuer and any other Capital Stock into which such
stock may hereafter be changed.

 

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

 

    	 	8	 

     

    

 

“Governmental
Authority” means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission,
board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign.

 

“Holders”
mean the Persons who shall from time to time own any Warrant. The term “Holder” means one of the Holders.

 

“Independent
Appraiser” means a nationally recognized or major regional investment banking firm or firm of independent certified
public accountants of recognized standing (which may be the firm that regularly examines the financial statements of the Issuer)
that is regularly engaged in the business of appraising the Capital Stock or assets of corporations or other entities as going
concerns, and which is not affiliated with either the Issuer or the Holder of any Warrant.

 

“Issuer”
means NAC Global Technologies, Inc., a Nevada corporation, and its successors.

 

“Original
Issue Date” means August 12, 2016.

 

“OTC
Bulletin Board” means the over-the-counter electronic bulletin board, including but not limited to the OTCQX and the
OTCQB.

 

“Person”
means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization,
joint venture, Governmental Authority or other entity of whatever nature.

 

“Per
Share Market Value” means on any particular date (a) the last trading price on any national securities exchange on which
the Common Stock is listed, or, if there is no such price, the closing bid price for a share of Common Stock, either in the over-the-counter
market, as reported by the OTC Bulletin Board or the OTC Markets Group Inc. (or similar organization or agency succeeding to its
functions of reporting prices) at the close of business on such date, or (b) if the Common Stock is not then publicly traded the
fair market value of a share of Common Stock on such date as determined by the Board in good faith; provided, however,
that the Holder, after receipt of the determination by the Board, shall have the right to select, jointly with the Issuer, an
Independent Appraiser, in which case, the fair market value shall be the determination by such Independent Appraiser; and provided,
further that all determinations of the Per Share Market Value shall be appropriately adjusted for any stock dividends,
stock splits or other similar transactions during the period between the date as of which such market value was required to be
determined and the date it is finally determined. The determination of fair market value shall be based upon the fair market value
of the Issuer determined on a going concern basis as between a willing buyer and a willing seller and taking into account all
relevant factors determinative of value, and shall be final and binding on all parties. In determining the fair market value of
any shares of Common Stock, no consideration shall be given to any restrictions on transfer of the Common Stock imposed by agreement
or by federal or state securities laws, or to the existence or absence of, or any limitations on, voting rights.

 

“Securities”
means any debt or equity securities of the Issuer (or any successor as applicable) whether now or hereafter authorized, any instrument
convertible into or exchangeable for Securities or a Security, and any option, warrant or other right to purchase or acquire any
Security. “Security” means one of the Securities.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any similar federal statute then in effect.

 

    	 	9	 

     

    

 

“Subsidiary”
means any corporation at least 50% of whose outstanding Voting Stock, and a limited liability company at least 50% of whose membership
interests, shall at the time be owned directly or indirectly by the Issuer or by one or more of its Subsidiaries.

 

“Term”
has the meaning specified in Section 1 hereof.

 

“Trading
Day” means (a) a day on which the Common Stock is traded on the OTC Bulletin Board, or (b) if the Common Stock is not
traded on the OTC Bulletin Board, a day on which the Common Stock is quoted in the over-the-counter market as reported by the
National Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices); provided,
however, that in the event that the Common Stock is not listed or quoted as set forth in (a) or (b) hereof, then Trading
Day shall mean any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions
in the State of New York are authorized or required by law or other government action to close.

 

“Voting
Stock” means, as applied to the Capital Stock of any corporation, Capital Stock of any class or classes (however designated)
having ordinary voting power for the election of a majority of the members of the Board of Directors (or other governing body)
of such corporation, other than Capital Stock having such power only by reason of the happening of a contingency.

 

“Warrants”
means this Warrant and any other warrants of like tenor issued in substitution or exchange for this Warrant pursuant to the provisions
of this Warrant.

 

“Warrant
Price” means $0.000001 per share, as such price may be adjusted from time to time as shall result from the adjustments
specified in this Warrant, including Section 4 hereto.

 

“Warrant
Share Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased
upon exercise of this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be
made under the terms hereof.

 

“Warrant
Stock” means Common Stock issuable upon exercise of any Warrant or Warrants or otherwise issuable pursuant to any Warrant
or Warrants.

 

8.Other
Notices. In case at any time:

 

(a)the
Issuer shall make any distributions to the holders of Common Stock; or

 

(b)the
Issuer shall authorize the granting to all holders of its Common Stock of rights to subscribe for or purchase any shares of Capital
Stock of any class or other rights; or

 

(c)there
shall be any reclassification of the Capital Stock of the Issuer; or

 

(d)there
shall be any capital reorganization by the Issuer; or

 

(e)there
shall be any (i) consolidation or merger involving the Issuer or (ii) sale, transfer or other disposition of all or substantially
all of the assets of the Issuer and its Subsidiaries, taken as a whole (except a merger or other reorganization in which the Issuer
shall be the surviving corporation and its shares of Capital Stock shall continue to be outstanding and unchanged and except a
consolidation, merger, sale, transfer or other disposition involving a wholly-owned Subsidiary); or

 

    	 	10	 

     

    

 

(f)there
shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Issuer or any partial liquidation of the Issuer
or distribution to holders of Common Stock;

 

then,
in each of such cases, the Issuer shall give written notice to the Holder of the date on which (i) the books of the Issuer shall
close or a record shall be taken for such dividend, distribution or subscription rights or (ii) such reorganization, reclassification,
consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be, shall take place. Such notice
also shall specify the date as of which the holders of Common Stock of record shall participate in such dividend, distribution
or subscription rights, or shall be entitled to exchange their certificates for Common Stock for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up,
as the case may be. Such notice shall be given at least ten (10) days prior to the action in question and not less than ten (10)
days prior to the record date or the date on which the Issuer’s transfer books are closed in respect thereto. The Holder
shall have the right to send two (2) representatives selected by it to each meeting, who shall be permitted to attend, but not
vote at, such meeting and any adjournments thereof. This Warrant entitles the Holder to receive copies of all financial and other
information distributed or required to be distributed to the holders of the Common Stock.

 

9.Amendment
and Waiver. Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived
(either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written instruments
executed by the Issuer and the Holder. If this Warrant shall have been transferred in part or otherwise subdivided into two or
more Warrants, then any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be
waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written
instruments executed by the Issuer and the Holders of a majority in interest of the Warrants.

 

10.Governing
Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. 

 

11.Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earlier of (i) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile telephone number specified for notice prior to 5:00 p.m., eastern time, on a Trading Day, (ii)
the Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone
number specified for notice later than 5:00 p.m., eastern time, on any date and earlier than 11:59 p.m., eastern time, on such
date, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service or (iv)
actual receipt by the party to whom such notice is required to be given. Such communications shall be addressed as follows:

 

	If
        to Issuer, to:

         

        NAC
        Global Technologies, Inc.

        1800 West Loop South, Suite 1115

        Houston, Texas 77027

        Attn: Chief Executive Officer

        Tel: (904) 493-6496
	 	with
        a copy (which will not constitute notice) to:

         

        Ellenoff
        Grossman & Schole LLP

        1345 Avenue of the Americas, 11th Floor

        New York, NY 10105

        Attn: Richard Anslow, Esq.

        Tel: (212) 370-1300

        Fax: (212) 370-7889

	 	 	 
	If
        to Holder, to:

         

        AM
        Dream Holding LLC

        c/o Mr. Antonio Monesi

        Bellelli Engineering S.p.A.

        Viale della Cooperazione

        37, 45100 Rovigo, Italy
	 	with
        a copy (which will not constitute notice) to:

         

        Ellenoff
        Grossman & Schole LLP

        1345 Avenue of the Americas, 11th Floor

        New York, NY 10105

        Attn: Richard Anslow, Esq.

        Tel: (212) 370-1300

        Fax: (212) 370-7889

         

        and

         

        Roca
        Gonzalez, P.A.

        3370
Mary Street

        Miami,
FL 33133

        Attn:
Lorella Dal Pezzo, Esq.

        Email:
ldalpezzo@rgpa.com

        Telephone:
(305) 859-6050

        Facsimile:
(305) 859-6051

 

Any
party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed
address to the other party hereto.

 

    	 	11	 

     

    

 

12.Warrant
Agent. The Issuer may, by written notice to each Holder of this Warrant, appoint an agent having an office in New York, New
York for the purpose of issuing shares of Warrant Stock on the exercise of this Warrant pursuant to subsection (b) of Section
2 hereof, exchanging this Warrant pursuant to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to subsection
(d) of Section 3 hereof, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be,
shall be made at such office by such agent.

 

13.Remedies.
The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default
by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that,
to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any
agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

 

14.Successors
and Assigns. This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors
and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued pursuant
hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock.

 

15.Modification
and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein,
any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make
it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability
of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable
provision had never been contained herein.

 

16.Headings.
The headings of the Sections of this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a
part of this Warrant.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	12	 

     

    

 

IN
WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and year first above written.

 

	 	NAC
    GLOBAL TECHNOLOGIES, INC.
	 	 	 
	 	By:	/s/
    Vincent Genovese
	 	Name:	Vincent
        Genovese

        

	 	Title:	 Chief Executive Officer

 

 

[Signature Page to Warrant]

 

    	 	13	 

     

    

 

WARRANT
EXERCISE FORM

 

NAC
GLOBAL TECHNOLOGIES, INC.

 

The
undersigned _________________, pursuant to the provisions of the within Warrant, hereby elects to purchase ________ shares of
Common Stock of NAC Global Technologies, Inc. covered by the within Warrant.

 

	Dated:
                                                  	Signature	
	 	Address	
	 	 	

 

Number of shares of Common Stock beneficially owned
or deemed beneficially owned by the Holder on the date of Exercise: _____________________

 

The undersigned is an “accredited investor” as
defined in Regulation D under the Securities Act of 1933, as amended.

 

The
undersigned intends that payment of the Warrant Price shall be made as (check one):

 

Cash
Exercise                                         

 

Cashless
Exercise                                          

 

If
the Holder has elected a Cash Exercise, the Holder shall pay the sum of $______________ by certified or official bank check (or
via wire transfer) to the Issuer in accordance with the terms of the Warrant.

 

If
the Holder has elected a Cashless Exercise, a certificate shall be issued to the Holder for the number of shares equal to the
whole number portion of the product of the calculation set forth below, which is __________________.

 

	 	X =	Y - (A)(Y)
	 	 	          B

 

Where:

 

The
number of shares of Common Stock to be issued to the Holder is: ____________________ (“X”).

 

The
number of shares of Common Stock purchasable upon exercise of all of the Warrant or, if only a portion of the Warrant is being
exercised, the portion of the Warrant being exercised, is: ______________________ (“Y”).

 

The
Warrant Price is: _____________________ (“A”).

 

The
Per Share Market Value of one share of Common Stock ___________________ (“B”).

 

    	 	14	 

     

    

 

ASSIGNMENT

 

FOR
VALUE RECEIVED, ________________ hereby sells, assigns and transfers unto ______________ the within Warrant and all rights evidenced
thereby and does irrevocably constitute and appoint ________________, attorney, to transfer the said Warrant on the books of the
within named corporation.

 

	Dated:
                                                  	Signature	
	 	Address	
	 	 	

 

PARTIAL
ASSIGNMENT

 

FOR
VALUE RECEIVED, ________________ hereby sells, assigns and transfers unto ______________ the right to purchase _________ shares
of Warrant Stock evidenced by the within Warrant together with all rights therein, and does irrevocably constitute and appoint
_________________, attorney, to transfer that part of the said Warrant on the books of the within named corporation.

 

	Dated:
                                                  	Signature	
	 	Address	
	 	 	

 

 

FOR
USE BY THE ISSUER ONLY:

 

This
Warrant No. W-____ canceled (or transferred or exchanged) this _____ day of ____________, 20__, shares of Common Stock issued
therefor in the name of ___________________, Warrant No. W-_____ issued for ________ shares of Common Stock in the name of ________________________.

 

 

15

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