Document:

EX-4.2

 Exhibit 4.2 

DEPOSIT AGREEMENT 
 among 

THE PNC FINANCIAL SERVICES GROUP, INC., 

COMPUTERSHARE TRUST COMPANY, N.A., as Depositary, 

COMPUTERSHARE INC., 
 and 

THE HOLDERS FROM TIME TO TIME OF 

THE DEPOSITARY RECEIPTS DESCRIBED HEREIN 

Dated as of November 1, 2016 

 TABLE OF CONTENTS 

 

					
	 Article I DEFINED TERMS
	  			
	 Section 1.1 Definitions
	  	 	1	  
	ARTICLE II FORM OF RECEIPTS, DEPOSIT OF SERIES S PREFERRED STOCK, EXECUTION AND DELIVERY, TRANSFER, SURRENDER AND REDEMPTION OF RECEIPTS	  			
	 Section 2.1. Form and Transfer of Receipts
	  	 	3	  
	 Section 2.2. Deposit of Series S Preferred Stock; Execution and Delivery of Receipts in Respect
Thereof
	  	 	4	  
	 Section 2.3. Registration of Transfer of Receipts
	  	 	5	  
	 Section 2.4. Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal of
Series S Preferred Stock
	  	 	5	  
	 Section 2.5. Limitations on Execution and Delivery, Transfer, Surrender and Exchange of
Receipts
	  	 	6	  
	 Section 2.6. Lost Receipts, etc.
	  	 	7	  
	 Section 2.7. Cancellation and Destruction of Surrendered Receipts
	  	 	7	  
	 Section 2.8. Redemption of Series S Preferred Stock
	  	 	7	  
	 Section 2.9 Bank Accounts
	  	 	9	  
	 Section 2.10 Receipts Issuable in Global Registered Form
	  	 	9	  
		
	 ARTICLE III CERTAIN OBLIGATIONS OF HOLDERS OF RECEIPTS AND THE CORPORATION
	  			
	 Section 3.1. Filing Proofs, Certificates and Other Information
	  	 	10	  
	 Section 3.2. Payment of Taxes or Other Governmental Charges
	  	 	10	  
	 Section 3.3. Warranty as to Series S Preferred Stock
	  	 	11	  
	 Section 3.4. Warranty as to Receipts
	  	 	11	  
		
	 ARTICLE IV THE DEPOSITED SECURITIES; NOTICES
	  			
	 Section 4.1. Cash Distributions
	  	 	11	  
	 Section 4.2. Distributions Other than Cash, Rights, Preferences or Privileges
	  	 	12	  
	 Section 4.3. Subscription Rights, Preferences or Privileges
	  	 	12	  
	 Section 4.4. Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts
	  	 	13	  
	 Section 4.5. Voting Rights
	  	 	13	  
	 Section 4.6. Changes Affecting Deposited Securities and Reclassifications, Recapitalizations,
etc.
	  	 	14	  
	 Section 4.7. Delivery of Reports
	  	 	15	  
	 Section 4.8. Lists of Receipt Holders
	  	 	15	  
		
	 ARTICLE V THE DEPOSITARY, THE DEPOSITARY’S AGENTS, THE REGISTRAR AND THE
CORPORATION
	  			
	 Section 5.1. Maintenance of Offices, Agencies and Transfer Books by the Depositary;
Registrar
	  	 	15	  
	 Section 5.2. Prevention of or Delay in Performance by the Depositary, the Depositary’s
Agents, the Registrar or the Corporation
	  	 	16	  

  
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	 Section 5.3. Obligations of the Depositary, the Depositary’s Agents, the Registrar and the
Corporation
	  	 	16	  
	 Section 5.4. Resignation and Removal of the Depositary; Appointment of Successor
Depositary
	  	 	18	  
	 Section 5.5. Corporate Notices and Reports
	  	 	18	  
	 Section 5.6. Indemnification by the Corporation
	  	 	19	  
	 Section 5.7. Fees, Charges and Expenses
	  	 	19	  
		
	 ARTICLE VI AMENDMENT AND TERMINATION
	  			
	 Section 6.1. Amendment
	  	 	20	  
	 Section 6.2. Termination
	  	 	20	  
		
	 ARTICLE VII MISCELLANEOUS
	  			
	 Section 7.1. Counterparts
	  	 	20	  
	 Section 7.2. Exclusive Benefit of Parties
	  	 	21	  
	 Section 7.3. Invalidity of Provisions
	  	 	21	  
	 Section 7.4. Notices
	  	 	21	  
	 Section 7.5. Depositary’s Agents
	  	 	22	  
	 Section 7.6. Appointment of Registrar, Dividend Disbursing Agent and Redemption Agent in Respect
of the Receipts
	  	 	22	  
	 Section 7.7. Appointment of Calculation Agent.
	  	 	22	  
	 Section 7.8. Holders of Receipts Are Parties
	  	 	22	  
	 Section 7.9. Governing Law
	  	 	22	  
	 Section 7.10. Inspection of Deposit Agreement
	  	 	23	  
	 Section 7.11. Headings
	  	 	23	  
	 Section 7.12. Force Majeure
	  	 	23	  
	 Section 7.13. Further Assurances
	  	 	23	  
	 Section 7.14. Confidentiality
	  	 	23	  

  
 ii 

 DEPOSIT AGREEMENT dated as of November 1, 2016, among (i) The PNC Financial Services Group,
Inc., a Pennsylvania corporation, (ii) Computershare Inc. and its wholly owned subsidiary, (iii) Computershare Trust Company, N.A., and (iv) the Holders from time to time of the Receipts described herein. 

WHEREAS, it is desired to provide, as hereinafter set forth in this Deposit Agreement, for the deposit of shares of Series S Preferred Stock
of the Corporation from time to time with the Depositary for the purposes set forth in this Deposit Agreement and for the issuance hereunder of Receipts evidencing Depositary Shares in respect of the Series S Preferred Stock so deposited; and 

WHEREAS, the Receipts are to be substantially in the form of Exhibit A annexed hereto, with appropriate insertions,
modifications and omissions, as hereinafter provided in this Deposit Agreement; 
 NOW, THEREFORE, in consideration of the premises, the
parties hereto agree as follows: 
 Article I 

DEFINED TERMS 
 Section 1.1
Definitions. 
 The following definitions shall for all purposes, unless otherwise indicated, apply to the respective terms used in
this Deposit Agreement: 
 “Statement” shall mean the relevant Statement with Respect to Shares filed with the Department of State
of the Commonwealth of Pennsylvania establishing the Series S Preferred Stock as a series of preferred stock of the Corporation. 

“Computershare” shall mean Computershare Inc. 

“Corporation” shall mean The PNC Financial Services Group, Inc., a Pennsylvania corporation, and its successors. 

“Deposit Agreement” shall mean this Deposit Agreement, as amended or supplemented from time to time in accordance with the terms
hereof. 
 “Depositary” shall mean, collectively, Computershare Trust Company, N.A. and Computershare Inc., and any successor as
Depositary hereunder. 
 “Depositary Shares” shall mean the depositary shares, each representing 1/100th of one share of the Series S Preferred Stock, evidenced by a Receipt. 

“Depositary’s Agent” shall mean an agent appointed by the Depositary pursuant to Section 7.5. 

  
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 “Depositary’s Office” shall mean the principal office of the Depositary at which
at any particular time its depositary receipt business shall be administered, which is currently in Canton, MA. 
 “DTC” shall mean
the Depository Trust Company. 
 “Effective Date” shall mean the date first stated above. 

“Exchange Event” shall mean with respect to any Global Registered Receipt: 

(1) (A) the Global Receipt Depository which is the Holder of such Global Registered Receipt or Receipts notifies the Corporation that it
is no longer willing or able to properly discharge its responsibilities under any Letter of Representations or that it is no longer eligible or in good standing under the Securities Exchange Act of 1934, as amended, and (B) the Corporation has
not appointed a qualified successor Global Receipt Depository within 90 calendar days after the Corporation received such notice, or 
 (2)
the Corporation in its sole discretion notifies the Depositary in writing that the Receipts or portion thereof issued or issuable in the form of one or more Global Registered Receipts shall no longer be represented by such Global Receipt or
Receipts. 
 “Global Receipt Depository” shall mean, with respect to any Receipt issued hereunder, DTC or such other entity
designated as Global Receipt Depository by the Corporation in or pursuant to this Deposit Agreement, which entity must be, to the extent required by any applicable law or regulation, a clearing agency registered under the Securities Exchange Act of
1934, as amended. 
 “Global Registered Receipts” means a global registered Receipt registered in the name of a nominee of DTC.

 “Letter of Representations” means any applicable agreement among the Corporation, the Depositary and a Global Receipt
Depository with respect to such Global Receipt Depository’s rights and obligations with respect to any Global Registered Receipts, as the same may be amended, supplemented, restated or otherwise modified from time to time and any successor
agreement thereto. 
 “Officer’s Certificate” shall mean a certificate in substantially the form set forth as
Exhibit B hereto, which is signed by an officer of the Corporation and which shall include the terms and conditions of the Series S Preferred Stock to be issued by the Corporation and deposited with the Depositary from time
to time in accordance with the terms hereof. 
 “Receipt” shall mean one of the depositary receipts issued hereunder,
substantially in the form set forth as Exhibit A hereto, whether in definitive or temporary form, and evidencing the number of Depositary Shares with respect to the Series S Preferred Stock held of record by the Record
Holder of such Depositary Shares. 
 “Record Holder” or “Holder” as applied to a Receipt shall mean the person in whose
name such Receipt is registered on the books of the Depositary maintained for such purpose. 
 “Redemption Date” shall have the
meaning set forth in Section 2.8. 

  
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 “Registrar” shall mean the Depositary or such other successor bank or trust company
which shall be appointed by the Corporation to register ownership and transfers of Receipts as herein provided; and if a successor Registrar shall be so appointed, references herein to “the books” of or maintained by the Depository shall
be deemed, as applicable, to refer as well to the register maintained by such Registrar for such purpose. 
 “Securities Act”
shall mean the Securities Act of 1933, as amended. 
 “Series S Preferred Stock” shall mean the shares of the Corporation’s
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series S, $1.00 par value, with a liquidation preference of $100,000 per share, designated in the Statement and described in the Officer’s Certificate delivered pursuant to
Section 2.2 hereof. 
 “Trust Company” shall mean Computershare Trust Company, N.A. 

ARTICLE II 
 FORM OF RECEIPTS,
DEPOSIT OF SERIES S PREFERRED STOCK, EXECUTION AND 
 DELIVERY, TRANSFER, SURRENDER AND REDEMPTION OF RECEIPTS 

Section 2.1. Form and Transfer of Receipts. 

The definitive Receipts shall be substantially in the form set forth in Exhibit A annexed to this Agreement, with
appropriate insertions, modifications and omissions, as hereinafter provided. Pending the preparation of definitive Receipts, the Depositary, upon the written order of the Corporation, delivered in compliance with
Section 2.2, shall execute and deliver temporary Receipts which may be printed, lithographed, typewritten, mimeographed or otherwise substantially of the tenor of the definitive Receipts in lieu of which they are issued and
with such appropriate insertions, omissions, substitutions and other variations as the persons executing such Receipts may determine, as evidenced by their execution of such Receipts. If temporary Receipts are issued, the Corporation and the
Depositary will cause definitive Receipts to be prepared without unreasonable delay. After the preparation of definitive Receipts, the temporary Receipts shall be exchangeable for definitive Receipts upon surrender of the temporary Receipts at an
office described in the penultimate paragraph of Section 2.2, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Receipts, the Depositary shall execute and deliver in exchange
therefor definitive Receipts representing the same number of Depositary Shares as represented by the surrendered temporary Receipt or Receipts. Such exchange shall be made at the Corporation’s expense and without any charge therefor. Until so
exchanged, the temporary Receipts shall in all respects be entitled to the same benefits under this Agreement as definitive Receipts. 

Receipts shall be executed by the Depositary by the manual or facsimile signature of a duly authorized officer of the Depositary. No Receipt
shall be entitled to any benefits under this Deposit Agreement or be valid or obligatory for any purpose unless it shall have been executed manually or by facsimile signature by a duly authorized officer of the Depositary or, if a Registrar for the
Receipts (other than the Depositary) shall have been appointed, by manual or facsimile signature of a duly authorized officer of the Depositary and countersigned by manual or facsimile signature by a duly authorized officer of such Registrar. The
Depositary shall record on its books each Receipt so signed and delivered as hereinafter provided. 

  
 3 

 Receipts shall be in denominations of any number of whole Depositary Shares. 

Receipts may be endorsed with or have incorporated in the text thereof such legends or recitals or changes not inconsistent with the
provisions of this Deposit Agreement all as may be required by the Depositary and approved by the Corporation or required to comply with any applicable law or any regulation thereunder or with the rules and regulations of any securities exchange
upon which the Series S Preferred Stock, the Depositary Shares or the Receipts may be listed or to conform with any usage with respect thereto, or to indicate any special limitations or restrictions to which any particular Receipts are subject. 

Title to Depositary Shares evidenced by a Receipt which is properly endorsed or accompanied by a properly executed instrument of transfer,
shall be transferable by delivery with the same effect as in the case of a negotiable instrument in accordance with the Depositary’s procedures; provided, however, that until transfer of any particular Receipt shall be registered
on the books of the Depositary as provided in Section 2.3, the Depositary may, notwithstanding any notice to the contrary, treat the Record Holder thereof at such time as the absolute owner thereof for the purpose of
determining the person entitled to distributions of dividends or other distributions or to any notice provided for in this Deposit Agreement and for all other purposes. 

The Company shall provide an opinion of counsel to the Depositary prior to the Effective Date, to set up a reserve, stating that: (1) the
Depositary Shares and the Series S Preferred Stock have been registered under the Securities Act; and (2) the Series S Preferred Stock, when issued and delivered against payment therefor, will be duly and validly issued and fully paid and
non-assessable.
 Section 2.2. Deposit of Series S Preferred Stock; Execution and Delivery of Receipts in Respect Thereof. 

Subject to the terms and conditions of this Deposit Agreement, the Corporation may from time to time deposit shares of Series S Preferred Stock
under this Deposit Agreement by delivery to the Depositary of a certificate or certificates for such shares of Series S Preferred Stock to be deposited, properly endorsed or accompanied, if required by the Depositary, by a duly executed instrument
of transfer or endorsement, in form satisfactory to the Depositary, together with all such certifications as may be required by the Depositary in accordance with the provisions of this Deposit Agreement and an executed Officer’s Certificate
attaching the Certificate of Designations and all other information required to be set forth therein, and together with a written order of the Corporation directing the Depositary to execute and deliver to, or upon the written order of, the person
or persons stated in such order a Receipt or Receipts evidencing in the aggregate the number of Depositary Shares representing such deposited Series S Preferred Stock. Each Officer’s Certificate delivered to the Depositary in accordance with
the terms of this Deposit Agreement shall be deemed to be incorporated into this Deposit Agreement and shall be binding on the Corporation, the Depositary and the Holders of Receipts to which such Officer’s Certificate relates. 

  
 4 

 The Series S Preferred Stock that is deposited shall be held by the Depositary at the
Depositary’s Office or at such other place or places as the Depositary shall determine. The Depositary shall not lend any Series S Preferred Stock deposited hereunder. 

Upon receipt by the Depositary of a certificate or certificates for Series S Preferred Stock deposited in accordance with the provisions of
this Section, together with the other documents required as above specified, and upon recordation of the Series S Preferred Stock on the books of the Corporation (or its duly appointed transfer agent) in the name of the Depositary or its nominee,
the Depositary, subject to the terms and conditions of this Deposit Agreement, shall execute and deliver to or upon the order of the person or persons named in the written order delivered to the Depositary referred to in the first paragraph of this
Section, a Receipt or Receipts evidencing in the aggregate the number of Depositary Shares representing the Series S Preferred Stock so deposited and registered in such name or names as may be requested by such person or persons. The Depositary
shall execute and deliver such Receipt or Receipts at the Depositary’s Office or such other offices, if any, as the Depositary may designate. Delivery at other offices shall be at the risk and expense of the person requesting such delivery.

 Section 2.3. Registration of Transfer of Receipts. 

Subject to the terms and conditions of this Deposit Agreement, the Depositary shall register on its books from time to time transfers of
Receipts upon any surrender thereof by the Holder in person or by duly authorized attorney, properly endorsed or accompanied by a properly executed instrument of transfer and including a signature guarantee from an eligible guarantor institution
participating in a signature guarantee program approved by the Securities Transfer Association, and any other evidence of authority that may be reasonably required by the Depositary. Thereupon, the Depositary shall execute a new Receipt or Receipts
evidencing the same aggregate number of Depositary Shares as those evidenced by the Receipt or Receipts surrendered and deliver such new Receipt or Receipts to or upon the order of the person entitled thereto. 

The Depositary shall not be required (a) to issue, transfer or exchange any Receipts for a period beginning at the opening of business 15
days next preceding any selection of Depositary Shares and Series S Preferred Stock to be redeemed and ending at the close of business on the day of the mailing of notice of redemption, or (b) to transfer or exchange for another Receipt any
Receipt called or being called for redemption in whole or in part except as provided in Section 2.8. 
 Section 2.4.
Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal of Series S Preferred Stock. 
 Upon surrender of a
Receipt or Receipts at the Depositary’s Office or at such other offices as it may designate for the purpose of effecting a split-up or combination of such Receipt or Receipts, and subject to the terms and conditions of this Deposit Agreement,
the Depositary shall execute a new Receipt or Receipts in the authorized denomination or denominations requested, evidencing the aggregate number of Depositary Shares evidenced by the Receipt or Receipts surrendered, and shall deliver such new
Receipt or Receipts to or upon the order of the Holder of the Receipt or Receipts so surrendered. 

  
 5 

 Any Holder of a Receipt or Receipts may withdraw the number of whole shares of Series S Preferred
Stock and all money and other property, if any, represented thereby by surrendering such Receipt or Receipts at the Depositary’s Office or at such other offices as the Depositary may designate for such withdrawals. Thereafter, without
unreasonable delay, the Depositary shall deliver to such Holder, or to the person or persons designated by such Holder as hereinafter provided, the number of whole shares of Series S Preferred Stock and all money and other property, if any,
represented by the Receipt or Receipts so surrendered for withdrawal, but Holders of such whole shares of Series S Preferred Stock will not thereafter be entitled to deposit such Series S Preferred Stock hereunder or to receive a Receipt evidencing
Depositary Shares therefor. If a Receipt delivered by the Holder to the Depositary in connection with such withdrawal shall evidence a number of Depositary Shares in excess of the number of Depositary Shares representing the number of whole shares
of Series S Preferred Stock, the Depositary shall at the same time, in addition to such number of whole shares of Series S Preferred Stock and such money and other property, if any, to be so withdrawn, deliver to such Holder, or subject to
Section 2.3 upon his order, a new Receipt evidencing such excess number of Depositary Shares. 
 In no event will
fractional shares of Series S Preferred Stock (or any cash payment in lieu thereof) be delivered by the Depositary or Computershare, as applicable. Delivery of the Series S Preferred Stock and money and other property, if any, being withdrawn may be
made by the delivery of such certificates, documents of title and other instruments as the Depositary may deem appropriate. 
 If the Series
S Preferred Stock and the money and other property, if any, being withdrawn are to be delivered to a person or persons other than the Record Holder of the related Receipt or Receipts being surrendered for withdrawal of such Series S Preferred Stock,
such Holder shall execute and deliver to the Depositary a written order so directing the Depositary and the Depositary may require that the Receipt or Receipts surrendered by such Holder for withdrawal of such shares of Series S Preferred Stock be
properly endorsed in blank or accompanied by a properly executed instrument of transfer in blank. 
 Delivery of the Series S Preferred
Stock and the money and other property, if any, represented by Receipts surrendered for withdrawal shall be made by the Depositary at the Depositary’s Office, except that, at the request, risk and expense of the Holder surrendering such Receipt
or Receipts and for the account of the Holder thereof, such delivery may be made at such other place as may be designated by such Holder. 

Section 2.5. Limitations on Execution and Delivery, Transfer, Surrender and Exchange of Receipts. 

As a condition precedent to the execution and delivery, registration of transfer, split-up, combination, surrender or exchange of any Receipt,
the Depositary, any of the Depositary’s Agents or the Corporation may require payment to it of a sum sufficient for the payment (or, in the event that the Depositary or the Corporation shall have made such payment, the reimbursement to it) of
any charges or expenses payable by the Holder of a Receipt pursuant to Section 5.7, may require the production of evidence satisfactory to it as to the identity and genuineness of any signature, and may also require
compliance with such regulations, if any, as the Depositary or the Corporation may establish consistent with the provisions of this Deposit Agreement and/or applicable law. 

  
 6 

 The deposit of the Series S Preferred Stock may be refused, the delivery of Receipts against
Series S Preferred Stock may be suspended, the registration of transfer of Receipts may be refused and the registration of transfer, surrender or exchange of outstanding Receipts may be suspended (i) during any period when the register of
stockholders of the Corporation is closed or (ii) if any such action is deemed necessary or advisable by the Depositary, any of the Depositary’s Agents or the Corporation at any time or from time to time because of any requirement of law
or of any government or governmental body or commission or under any provision of this Deposit Agreement. 
 Section 2.6. Lost Receipts, etc.

 In case any Receipt shall be mutilated, destroyed, lost or stolen, the Depositary in its discretion may execute and deliver a Receipt of
like form and tenor in exchange and substitution for such mutilated Receipt, or in lieu of and in substitution for such destroyed, lost or stolen Receipt, upon (i) the filing by the Holder thereof with the Depositary of evidence satisfactory to
the Depositary of such destruction or loss or theft of such Receipt, of the authenticity thereof and of his or her ownership thereof and (ii) the Holder thereof furnishing the Depositary with an affidavit and an open penalty surety bond
satisfactory to the Depositary. Applicants for such substitute Receipts shall also comply with such other reasonable regulations and pay such other reasonable charges as the Depositary may prescribe and as required by Section 8-405 of the Uniform
Commercial Code.
 Section 2.7. Cancellation and Destruction of Surrendered Receipts. 

All Receipts surrendered to the Depositary or any Depositary’s Agent shall be cancelled by the Depositary. Except as prohibited by
applicable law or regulation, the Depositary is authorized and directed to destroy all Receipts so cancelled. 
 Section 2.8. Redemption of Series S
Preferred Stock. 
 Whenever the Corporation shall be permitted and shall elect to redeem shares of Series S Preferred Stock in
accordance with the terms of the Certificate of Designations, it shall (unless otherwise agreed to in writing with the Depositary) give or cause to be given to the Depositary or Computershare, as applicable, not less than 30 days and not more
than 60 days prior to the Redemption Date (as defined below), notice of the date of such proposed redemption of Series S Preferred Stock and of the number of such shares held by the Depositary to be so redeemed and the applicable redemption
price, which notice shall be accompanied by a certificate from the Corporation stating that such redemption of Series S Preferred Stock is in accordance with the provisions of the Certificate of Designations. On the date of such redemption,
provided that the Corporation shall then have paid or caused to be paid in full to Computershare the redemption price of the Series S Preferred Stock to be redeemed, plus (i) an amount equal to any declared and unpaid dividends thereon to the
date fixed for redemption, or (ii) in the case of a Regulatory Capital Treatment Event (as defined in the Statement) plus any declared and unpaid dividends and any accrued (meaning the pro rata dividend from the prior scheduled dividend
payment date, whether or not paid, up to the redemption date) and unpaid dividends thereon to the date 

  
 7 

 
fixed for redemption, in each case in accordance with the provisions of the Statement, the Depositary shall redeem the number of Depositary Shares representing such Series S Preferred Stock. The
Depositary shall mail notice of the Corporation’s redemption of Series S Preferred Stock and the proposed simultaneous redemption of the number of Depositary Shares representing the Series S Preferred Stock to be redeemed by first-class mail,
postage prepaid, not less than 30 days and not more than 60 days prior to the date fixed for redemption of such Series S Preferred Stock and Depositary Shares (the “Redemption Date”), to the Record Holders of the Receipts
evidencing the Depositary Shares to be so redeemed at their respective last addresses as they appear on the records of the Depositary; but neither failure to mail any such notice of redemption of Depositary Shares to one or more such Holders nor any
defect in any notice of redemption of Depositary Shares to one or more such Holders shall affect the sufficiency of the proceedings for redemption as to the other Holders. Each such notice shall be prepared by the Corporation and shall state:
(i) the Redemption Date; (ii) the number of Depositary Shares to be redeemed and, if less than all the Depositary Shares held by any such Holder are to be redeemed, the number of such Depositary Shares held by such Holder to be so
redeemed; (iii) the redemption price; (iv) the place or places where Receipts evidencing such Depositary Shares are to be surrendered for payment of the redemption price; and (v) that dividends in respect of the Series S Preferred
Stock represented by such Depositary Shares to be redeemed will cease to accrue on such Redemption Date. In case less than all the outstanding Depositary Shares are to be redeemed, the Depositary Shares to be so redeemed shall be selected either pro
rata or by lot or in such other manner determined by the Depositary to be fair and equitable. 
 Notice having been mailed by the Depositary
as aforesaid, from and after the Redemption Date (unless the Corporation shall have failed to provide the funds necessary to redeem the Series S Preferred Stock evidenced by the Depositary Shares called for redemption) (i) dividends on the
shares of Series S Preferred Stock so called for Redemption shall cease to accrue from and after such date, (ii) the Depositary Shares being redeemed from such proceeds shall be deemed no longer to be outstanding, (iii) all rights of the
Holders of Receipts evidencing such Depositary Shares (except the right to receive the redemption price) shall, to the extent of such Depositary Shares, cease and terminate, and (iv) upon surrender in accordance with such redemption notice of
the Receipts evidencing any such Depositary Shares called for redemption (properly endorsed or assigned for transfer, if the Depositary or applicable law shall so require), such Depositary Shares shall be redeemed by the Depositary at a redemption
price per Depositary Share equal to 1/100th of the redemption price per share of Series S Preferred Stock so redeemed plus all money and other property, if any, represented by such Depositary
Shares, including all amounts paid by the Corporation in respect of dividends in accordance with the provisions of the Statement. 
 If
fewer than all of the Depositary Shares evidenced by a Receipt are called for redemption, the Depositary or Computershare, as appropriate, will deliver to the Holder of such Receipt upon its surrender to the Depositary, together with the redemption
payment, a new Receipt evidencing the Depositary Shares evidenced by such prior Receipt and not called for redemption. In any such case, we shall redeem Depositary Shares only in increments of 10 Depositary Shares and any multiple thereof. 

  
 8 

 Section 2.9. Bank Accounts. 

The Company acknowledges that the bank accounts maintained by Computershare in connection with the services provided under this Deposit
Agreement will be in Computershare’s name and that Computershare may receive investment earnings in connection with the investment of funds held in those accounts from time to time and any risk of loss resulting from any investment made
hereunder (but not risk or loss resulting from default of any bank) shall be at Computershare’s risk and any gain shall be for its benefit. Neither the Company nor the Holders will receive interest on any deposits. Until paid pursuant to
this Agreement, Computershare may hold or invest any funds in such bank accounts in obligations of, or guaranteed by, the United States of America. 

Section 2.10. Receipts Issuable in Global Registered Form. 

If the Corporation shall determine in a writing delivered to the Depositary that the Receipts are to be issued in whole or in part in the form
of one or more Global Registered Receipts, then the Depositary shall, in accordance with the other provisions of this Deposit Agreement, execute and deliver one or more Global Registered Receipts evidencing the Receipts of such Series, which
(i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, the Receipts to be represented by such Global Registered Receipt or Receipts, (ii) shall be registered in the name of the Global Receipt
Depository therefor or its nominee. 
 Notwithstanding any other provision of this Deposit Agreement to the contrary, unless otherwise
provided in the Global Registered Receipt, a Global Registered Receipt may only be transferred in whole and only by the applicable Global Receipt Depository for such Global Registered Receipt to a nominee of such Global Receipt Depository, or by a
nominee of such Global Receipt Depository to such Global Receipt Depository or another nominee of such Global Receipt Depository, or by such Global Receipt Depository or any such nominee to a successor Global Receipt Depository for such Global
Registered Receipt selected or approved by the Corporation or to a nominee of such successor Global Receipt Depository. Except as provided below, owners solely of beneficial interests in a Global Registered Receipt shall not be entitled to receive
physical delivery of the Receipts represented by such Global Registered Receipt. Neither any such beneficial owner nor any direct or indirect participant of a Global Receipt Depository shall have any rights under this Deposit Agreement with respect
to any Global Registered Receipt held on their behalf by a Global Receipt Depository and such Global Receipt Depository may be treated by the Corporation, the Depositary and any director, officer, employee or agent of the Corporation or the
Depositary as the holder of such Global Registered Receipt for all purposes whatsoever. Unless and until definitive Receipts are delivered to the owners of the 

  
 9 

 
beneficial interests in a Global Registered Receipt, (1) the applicable Global Receipt Depository will make book-entry transfers among its participants and receive and transmit all payments
and distributions in respect of the Global Registered Receipts to such participants, in each case, in accordance with its applicable procedures and arrangements, and (2) whenever any notice, payment or other communication to the holders of
Global Registered Receipts is required under this Deposit Agreement, the Corporation and the Depositary or Computershare, as appropriate, shall give all such notices, payments and communications specified herein to be given to such holders to the
applicable Global Receipt Depository. 
 If an Exchange Event has occurred with respect to any Global Registered Receipt, then, in any such
event, the Depositary shall, upon receipt of a written order from the Corporation for the execution and delivery of individual definitive registered Receipts in exchange for such Global Registered Receipt, shall execute and deliver, individual
definitive registered Receipts, in authorized denominations and of like tenor and terms in an aggregate principal amount equal to the principal amount of the Global Registered Receipt in exchange for such Global Registered Receipt. 

Definitive registered Receipts issued in exchange for a Global Registered Receipt pursuant to this Section shall be registered in such names
and in such authorized denominations as the Global Receipt Depository for such Global Registered Receipt, pursuant to instructions from its participants, shall instruct the Depositary in writing. The Depositary shall deliver such Receipts to the
persons in whose names such Receipts are so registered. 
 Notwithstanding anything to the contrary in this Deposit Agreement, should the
Corporation determine that the Receipts should be issued as a Global Registered Receipt, the parties hereto shall comply with the terms of any Letter of Representations. 

ARTICLE III 
 CERTAIN OBLIGATIONS
OF HOLDERS OF RECEIPTS AND THE CORPORATION 
 Section 3.1. Filing Proofs, Certificates and Other Information. 

Any Holder of a Receipt may be required from time to time to file such proof of residence, or other matters or other information, to execute
such certificates and to make such representations and warranties as the Depositary or the Corporation may reasonably deem necessary or proper. The Depositary or the Corporation may withhold the delivery, or delay the registration of transfer or
redemption, of any Receipt or the withdrawal of the Series S Preferred Stock represented by the Depositary Shares and evidenced by a Receipt or the distribution of any dividend or other distribution or the sale of any rights or of the proceeds
thereof until such proof or other information is filed or such certificates are executed or such representations and warranties are made. 

Section 3.2. Payment of Taxes or Other Governmental Charges. 

Holders of Receipts shall be obligated to make payments to the Depositary of certain charges and expenses, as provided in
Section 5.7. Registration of transfer of any Receipt or any withdrawal of Series S Preferred Stock and all money or other property, if any, represented by 

  
 10 

 
the Depositary Shares evidenced by such Receipt may be refused until any such payment due is made, and any dividends, interest payments or other distributions may be withheld or any part of or
all the Series S Preferred Stock or other property represented by the Depositary Shares evidenced by such Receipt and not theretofore sold may be sold for the account of the Holder thereof (after attempting by reasonable means to notify such Holder
prior to such sale), and such dividends, interest payments or other distributions or the proceeds of any such sale may be applied to any payment of such charges or expenses, the Holder of such Receipt remaining liable for any deficiency. 

Section 3.3. Warranty as to Series S Preferred Stock. 

The Corporation hereby represents and warrants that the Series S Preferred Stock, when issued, will be duly authorized, validly issued, fully
paid and nonassessable. Such representation and warranty shall survive the deposit of the Series S Preferred Stock and the issuance of the related Receipts. 

Section 3.4. Warranty as to Receipts. 

The Corporation hereby represents and warrants that the Receipts, when issued, will represent legal and valid interests in the Series S
Preferred Stock. Such representation and warranty shall survive the deposit of the Series S Preferred Stock and the issuance of the Receipts. 

ARTICLE IV 
 THE DEPOSITED
SECURITIES; NOTICES 
 Section 4.1. Cash Distributions. 

Whenever Computershare shall receive any cash dividend or other cash distribution on the Series S Preferred Stock, Computershare shall, subject
to Sections 3.1 and 3.2, distribute to Record Holders of Receipts on the record date fixed pursuant to Section 4.4 such amounts of such dividend or distribution as are, as nearly as
practicable, in proportion to the respective numbers of Depositary Shares evidenced by the Receipts held by such Holders; provided, however, that in case the Corporation or Computershare shall be required to withhold and shall withhold
from any cash dividend or other cash distribution in respect of the Series S Preferred Stock an amount on account of taxes, the amount made available for distribution or distributed in respect of Depositary Shares shall be reduced accordingly.
Computershare shall distribute or make available for distribution, as the case may be, only such amount, however, as can be distributed without attributing to any Holder of Receipts a fraction of one cent, and any balance not so distributable shall
be held by Computershare (without liability for interest thereon) and shall be added to and be treated as part of the next sum received by Computershare for distribution to Record Holders of Receipts then outstanding. Each Holder of a Receipt shall
provide the Depositary with its certified tax identification number on a properly completed Form W-8 or W-9, as may be applicable. Each Holder of a Receipt acknowledges that, in the event of non-compliance with the preceding sentence, the Internal
Revenue Code of 1986, as amended, may require withholding by Computershare of a portion of any of the distributions to be made hereunder. 

  
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 Section 4.2. Distributions Other than Cash, Rights, Preferences or Privileges. 

Whenever the Depositary shall receive any distribution other than cash, rights, preferences or privileges upon the Series S Preferred Stock,
the Depositary shall, subject to Sections 3.1 and 3.2, distribute to Record Holders of Receipts on the record date fixed pursuant to Section 4.4 such amounts of the securities or property
received by it as are, as nearly as practicable, in proportion to the respective numbers of Depositary Shares evidenced by such Receipts held by such Holders, in any manner that the Depositary may deem equitable and practicable for accomplishing
such distribution. If in the opinion of the Depositary such distribution cannot be made proportionately among such Record Holders, or if for any other reason (including any requirement that the Corporation or the Depositary withhold an amount on
account of taxes) the Depositary deems, after consultation with the Corporation, such distribution not to be feasible, the Depositary may, with the approval of the Corporation, adopt such method as it deems equitable and practicable for the purpose
of effecting such distribution, including the sale (at public or private sale) of the securities or property thus received, or any part thereof, in a commercially reasonable manner. The net proceeds of any such sale shall, subject to
Sections 3.1 and 3.2, be distributed or made available for distribution, as the case may be, by Computershare to Record Holders of Receipts as provided by Section 4.1 in the case of a
distribution received in cash. The Corporation shall not make any distribution of such securities or property to the Depositary and the Depositary shall not make any distribution of such securities or property to the Holders of Receipts unless the
Corporation shall have provided an opinion of counsel stating that such securities or property have been registered under the Securities Act or do not need to be registered in connection with such distributions. 

Section 4.3. Subscription Rights, Preferences or Privileges. 

If the Corporation shall at any time offer or cause to be offered to the persons in whose names the Series S Preferred Stock is recorded on the
books of the Corporation any rights, preferences or privileges to subscribe for or to purchase any securities or any rights, preferences or privileges of any other nature, such rights, preferences or privileges shall in each such instance be made
available by the Depositary to the Record Holders of Receipts in such manner as the Depositary may determine, either by the issue to such Record Holders of warrants representing such rights, preferences or privileges or by such other method as may
be approved by the Depositary in its discretion with the approval of the Corporation; provided, however, that (i) if at the time of issue or offer of any such rights, preferences or privileges the Depositary determines that it is
not lawful or (after consultation with the Corporation) not feasible to make such rights, preferences or privileges available to Holders of Receipts by the issue of warrants or otherwise, or (ii) if and to the extent so instructed by Holders of
Receipts who do not desire to exercise such rights, preferences or privileges, then the Depositary, in its discretion (with approval of the Corporation, in any case where the Depositary has determined that it is not feasible to make such rights,
preferences or privileges available), may, if applicable laws or the terms of such rights, preferences or privileges permit such transfer, sell such rights, preferences or privileges at public or private sale, at such place or places and upon such
terms as it may deem proper. The net proceeds of any such sale shall, subject to Sections 3.1 and 3.2, be distributed by the Depositary to the Record Holders of Receipts entitled thereto as provided by
Section 4.1 in the case of a distribution received in cash. 

  
 12 

 The Corporation shall notify the Depositary whether registration under the Securities Act of the
securities to which any rights, preferences or privileges relate is required in order for Holders of Receipts to be offered or sold the securities to which such rights, preferences or privileges relate, and the Corporation agrees with the Depositary
that it will file promptly a registration statement pursuant to the Securities Act with respect to such rights, preferences or privileges and securities and use its best efforts and take all steps available to it to cause such registration statement
to become effective sufficiently in advance of the expiration of such rights, preferences or privileges to enable such Holders to exercise such rights, preferences or privileges. In no event shall the Depositary make available to the Holders of
Receipts any right, preference or privilege to subscribe for or to purchase any securities unless and until such registration statement shall have become effective, or the Corporation shall have provided to the Depositary an opinion of counsel to
the effect that the offering and sale of such securities to the Holders are exempt from registration under the provisions of the Securities Act. 

The Corporation shall notify the Depositary whether any other action under the laws of any jurisdiction or any governmental or administrative
authorization, consent or permit is required in order for such rights, preferences or privileges to be made available to Holders of Receipts, and the Corporation agrees with the Depositary that the Corporation will use its reasonable best efforts to
take such action or obtain such authorization, consent or permit sufficiently in advance of the expiration of such rights, preferences or privileges to enable such Holders to exercise such rights, preferences or privileges. 

Section 4.4. Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts. 

Whenever any cash dividend or other cash distribution shall become payable or any distribution other than cash shall be made, or if rights,
preferences or privileges shall at any time be offered, with respect to the Series S Preferred Stock, or whenever the Depositary shall receive notice of any meeting at which holders of the Series S Preferred Stock are entitled to vote or of which
holders of the Series S Preferred Stock are entitled to notice, or whenever the Depositary and the Corporation shall decide it is appropriate, the Depositary shall in each such instance fix a record date (which shall be the same date as the record
date fixed by the Corporation with respect to or otherwise in accordance with the terms of the Series S Preferred Stock) for the determination of the Holders of Receipts who shall be entitled to receive such dividend, distribution, rights,
preferences or privileges or the net proceeds of the sale thereof, or to give instructions for the exercise of voting rights at any such meeting, or who shall be entitled to notice of such meeting or for any other appropriate reasons. 

Section 4.5. Voting Rights. 
 Subject
to the provisions of the Certificate of Designations, upon receipt of notice of any meeting at which the holders of the Series S Preferred Stock are entitled to vote, the Depositary shall, as soon as practicable thereafter, mail to the Record
Holders of Receipts a notice prepared by the Corporation which shall contain (i) such information as is contained in such notice of meeting and (ii) a statement that the Holders may, subject to any applicable restrictions, instruct the
Depositary as to the exercise of the voting rights pertaining to the amount of Series S Preferred Stock represented by their respective Depositary Shares (including an express indication that instructions may be given to the Depositary to give a
discretionary proxy to a 

  
 13 

 
person designated by the Corporation) and a brief statement as to the manner in which such instructions may be given. Upon the written request of the Holders of Receipts on the relevant record
date, the Depositary shall endeavor insofar as practicable to vote or cause to be voted, in accordance with the instructions set forth in such requests, the maximum number of whole shares of Series S Preferred Stock represented by the Depositary
Shares evidenced by all Receipts as to which any particular voting instructions are received. The Corporation hereby agrees to take all reasonable action which may be deemed necessary by the Depositary in order to enable the Depositary to vote such
Series S Preferred Stock or cause such Series S Preferred Stock to be voted. In the absence of specific instructions from the Holder of a Receipt, the Depositary will not vote (but, at its discretion, may appear at any meeting with respect to such
Series S Preferred Stock unless directed to the contrary by the Holders of all the Receipts) to the extent of the Series S Preferred Stock represented by the Depositary Shares evidenced by such Receipt. 

Section 4.6. Changes Affecting Deposited Securities and Reclassifications, Recapitalizations, etc. 

Upon any change in par or stated value, split-up, combination or any other reclassification of the Series S Preferred Stock, subject to the
provisions of the Certificate of Designations, or upon any recapitalization, reorganization, merger or consolidation affecting the Corporation or to which it is a party, the Depositary may in its discretion with the approval of, and shall upon the
instructions of, the Corporation, and (in either case) in such manner as the Depositary may deem equitable, (i) make such adjustments as are certified by the Corporation in the fraction of an interest represented by one Depositary Share in one
share of Series S Preferred Stock and in the ratio of the redemption price per Depositary Share to the redemption price per share of Series S Preferred Stock, in each case as may be necessary fully to reflect the effects of such change in par or
stated value, split-up, combination or other reclassification of the Series S Preferred Stock, or of such recapitalization, reorganization, merger or consolidation and (ii) treat any securities which shall be received by the Depositary in
exchange for or upon conversion of or in respect of the Series S Preferred Stock as new deposited securities so received in exchange for or upon conversion or in respect of such Series S Preferred Stock. In any such case the Depositary may in its
discretion, with the approval of the Corporation, execute and deliver additional Receipts or may call for the surrender of all outstanding Receipts to be exchanged for new Receipts specifically describing such new deposited securities. Anything to
the contrary herein notwithstanding, Holders of Receipts shall have the right from and after the effective date of any such change in par or stated value, split-up, combination or other reclassification of the Series S Preferred Stock or any such
recapitalization, reorganization, merger or consolidation to surrender such Receipts to the Depositary with instructions to convert, exchange or surrender the Series S Preferred Stock represented thereby only into or for, as the case may be, the
kind and amount of shares and other securities and property and cash into which the Series S Preferred Stock represented by such Receipts might have been converted or for which such Series S Preferred Stock might have been exchanged or surrendered
immediately prior to the effective date of such transaction. 

  
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 Section 4.7. Delivery of Reports. 

The Depositary shall furnish to Holders of Receipts any reports and communications received from the Corporation which is received by the
Depositary and which the Corporation is required to furnish to the holders of the Series S Preferred Stock. 
 Section 4.8. Lists of Receipt
Holders. 
 Reasonably promptly upon request from time to time by the Corporation, at the sole expense of the Corporation, the Depositary
shall furnish to it a list, as of the most recent practicable date, of the names, addresses and holdings of Depositary Shares of all registered Holders of Receipts. 

ARTICLE V 
 THE DEPOSITARY, THE
DEPOSITARY’S AGENTS, THE REGISTRAR AND THE 
 CORPORATION 

Section 5.1. Maintenance of Offices, Agencies and Transfer Books by the Depositary; Registrar. 

Upon execution of this Deposit Agreement, the Depositary shall maintain at the Depositary’s Office, facilities for the execution and
delivery, registration and registration of transfer, surrender and exchange of Receipts, and at the offices of the Depositary’s Agents, if any, facilities for the delivery, registration of transfer, surrender and exchange of Receipts, all in
accordance with the provisions of this Deposit Agreement. 
 The Depositary shall keep books at the Depositary’s Office for the
registration and registration of transfer of Receipts, which books at all reasonable times shall be open for inspection by the Record Holders of Receipts; provided that any such Holder requesting to exercise such right shall certify to the
Depositary that such inspection shall be for a proper purpose reasonably related to such person’s interest as an owner of Depositary Shares evidenced by the Receipts. 

The Depositary may close such books, at any time or from time to time, when deemed expedient by it in connection with the performance of its
duties hereunder. 
 The Depositary may, with the approval of the Corporation, appoint a Registrar for registration of the Receipts or the
Depositary Shares evidenced thereby. If the Receipts or the Depositary Shares evidenced thereby or the Series S Preferred Stock represented by such Depositary Shares shall be listed on one or more national securities exchanges, the Depositary will
appoint a Registrar (acceptable to the Corporation) for registration of the Receipts or Depositary Shares in accordance with any requirements of such exchange. Such Registrar (which may be the Depositary if so permitted by the requirements of any
such exchange) may be removed and a substitute registrar appointed by the Depositary upon the request or with the approval of the Corporation. If the Receipts, Depositary Shares or Series S Preferred Stock are listed on one or more other securities
exchanges, the Depositary will, at the request of the Corporation, arrange such facilities for the delivery, registration, registration of transfer, surrender and exchange of the Receipts, Depositary Shares or Series S Preferred Stock as may be
required by law or applicable securities exchange regulation. 

  
 15 

 Section 5.2. Prevention of or Delay in Performance by the Depositary, the Depositary’s Agents, the
Registrar or the Corporation. 
 Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the Corporation shall incur
any liability to any Holder of Receipt if by reason of any provision of any present or future law, or regulation thereunder, of the United States of America or of any other governmental authority or, in the case of the Depositary, the
Depositary’s Agent or the Registrar, by reason of any provision, present or future, of the Corporation’s Amended and Restated Articles of Incorporation (including the Certificate of Designations) or by reason of any act of God or war or
other circumstance beyond the control of the relevant party, the Depositary, the Depositary’s Agent, the Registrar or the Corporation shall be prevented or forbidden from, or subjected to any penalty on account of, doing or performing any act
or thing which the terms of this Deposit Agreement provide shall be done or performed; nor shall the Depositary, any Depositary’s Agent, any Registrar or the Corporation incur liability to any Holder of a Receipt (i) by reason of any
nonperformance or delay, caused as aforesaid, in the performance of any act or thing which the terms of this Deposit Agreement shall provide shall or may be done or performed, or (ii) by reason of any exercise of, or failure to exercise, any
discretion provided for in this Deposit Agreement except as otherwise explicitly set forth in this Deposit Agreement. 
 Section 5.3. Obligations of
the Depositary, the Depositary’s Agents, the Registrar and the Corporation. 
 Neither the Depositary nor any Depositary’s
Agent nor any Registrar nor the Corporation assumes any obligation or shall be subject to any liability under this Deposit Agreement to Holders of Receipts other than for its gross negligence, willful misconduct or bad faith. Notwithstanding
anything in this Deposit Agreement to the contrary, excluding the Depositary’s willful misconduct or bad faith, the Depositary’s aggregate liability under this Deposit Agreement with respect to, arising from or arising in connection with
this Deposit Agreement, or from all services provided or omitted to be provided under this Deposit Agreement, whether in contract, tort, or otherwise, is limited to, and shall not exceed, the amounts paid hereunder by the Company to the Depositary
as fees and charges, but not including reimbursable expenses.
 Notwithstanding anything in this Deposit Agreement to the contrary, neither
the Depositary, nor the Depositary’s Agent nor any Registrar nor the Corporation shall be liable in any event for special, punitive, incidental, indirect or consequential losses or damages of any kind whatsoever (including but not limited to
lost profits). 
 Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the Corporation shall be under any obligation
to appear in, prosecute or defend any action, suit or other proceeding in respect of the Series S Preferred Stock, the Depositary Shares or the Receipts which in its opinion may involve it in expense or liability unless indemnity satisfactory to it
against all expense and liability be furnished as often as may be required. 
 Neither the Depositary nor any Depositary’s Agent nor
any Registrar nor the Corporation shall be liable for any action or any failure to act by it in reliance upon the written advice of legal counsel or accountants, or information from any person presenting Series S Preferred Stock for deposit, any
Holder of a Receipt or any other person believed by it in good faith to be competent 

  
 16 

 
to give such information. The Depositary, any Depositary’s Agent, any Registrar and the Corporation may each rely and shall each be protected in acting upon or omitting to act upon any
written notice, request, direction or other document believed by it to be genuine and to have been signed or presented by the proper party or parties. 

The Depositary shall not be responsible for any failure to carry out any instruction to vote any of the shares of Series S Preferred Stock or
for the manner or effect of any such vote made, as long as any such action or non-action is not taken in bad faith. The Depositary undertakes, and any Registrar shall be required to undertake, to perform such duties and only such duties as are
specifically set forth in this Deposit Agreement, and no implied covenants or obligations shall be read into this Deposit Agreement against the Depositary or any Registrar. 

The Depositary, the Depositary’s Agents, and any Registrar may own and deal in any class of securities of the Corporation and its
affiliates and in Receipts. The Depositary may also act as transfer agent or registrar of any of the securities of the Corporation and its affiliates. 

The Depositary shall not be under any liability for interest on any monies at any time received by it pursuant to any of the provisions of
this Deposit Agreement or of the Receipts, the Depositary Shares or the Series S Preferred Stock nor shall it be obligated to segregate such monies from other monies held by it, except as required by law. The Depositary shall not be responsible for
advancing funds on behalf of the Corporation and shall have no duty or obligation to make any payments if it has not timely received sufficient funds to make timely payments. 

In the event the Depositary believes any ambiguity or uncertainty exists hereunder or in any notice, instruction, direction, request or other
communication, paper or document received by the Depositary hereunder, or in the administration of any of the provisions of this Deposit Agreement, the Depositary shall deem it necessary or desirable that a matter be proved or established prior to
taking, omitting or suffering to take any action hereunder, the Depositary may, in its sole discretion upon written notice to the Corporation, refrain from taking any action and shall be fully protected and shall not be liable in any way to the
Corporation, any Holders of Receipts or any other person or entity for refraining from taking such action, unless the Depositary receives written instructions or a certificate signed by the Corporation which eliminates such ambiguity or uncertainty
to the satisfaction of the Depositary or which proves or establishes the applicable matter to the satisfaction of the Depositary. 
 From
time to time, Company may provide the Depositary with instructions concerning the services performed by the Depositary under this Deposit Agreement. In addition, at any time, the Depositary may apply to any officer of Company for instruction,
and may consult with legal counsel for the Depositary or Company with respect to any matter arising in connection with the services to be performed by the Depositary under this Deposit Agreement. The Depositary and its agents and subcontractors
shall not be liable and shall be indemnified by Company for any action taken or omitted by the Depositary in reliance upon any Company instructions or upon the advice or opinion of such counsel. The Depositary shall not be held to have notice
of any change of authority of any person, until receipt of written notice thereof from Company. The rights and obligations of the Depositary set forth in this Section 5.3 shall survive termination of this Deposit Agreement or any resignation or
succession of any Depositary, Registrar or Depositary’s Agent. 

  
 17 

 Section 5.4. Resignation and Removal of the Depositary; Appointment of Successor Depositary. 

The Depositary may at any time resign as Depositary hereunder by delivering notice of its election to do so to the Corporation, such
resignation to take effect upon the appointment of a successor Depositary and its acceptance of such appointment as hereinafter provided. 

The Depositary may at any time be removed by the Corporation by notice of such removal delivered to the Depositary, such removal to take
effect upon the appointment of a successor Depositary hereunder and its acceptance of such appointment as hereinafter provided. 
 In case
at any time the Depositary acting hereunder shall resign or be removed, the Corporation shall, within 60 days after the delivery of the notice of resignation or removal, as the case may be, appoint a successor Depositary, which shall be a bank
or trust company having its principal office in the United States of America and having a combined capital and surplus, along with its affiliates, of at least $50,000,000. If no successor Depositary shall have been so appointed and have accepted
appointment within 60 days after delivery of such notice, the resigning or removed Depositary may petition any court of competent jurisdiction for the appointment of a successor Depositary. Every successor Depositary shall execute and deliver
to its predecessor and to the Corporation an instrument in writing accepting its appointment hereunder, and thereupon such successor Depositary, without any further act or deed, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor and for all purposes shall be the Depositary under this Deposit Agreement, and such predecessor, upon payment of all sums due it and on the written request of the Corporation, shall promptly execute and deliver an
instrument transferring to such successor all rights and powers of such predecessor hereunder, shall duly assign, transfer and deliver all right, title and interest in the Series S Preferred Stock and any moneys or property held hereunder to such
successor, and shall deliver to such successor a list of the Record Holders of all outstanding Receipts and such records, books and other information in its possession relating thereto. 

Any entity into or with which the Depositary may be merged, consolidated or converted shall be the successor of the Depositary without the
execution or filing of any document or any further act, and notice thereof shall not be required hereunder. Such successor Depositary may authenticate the Receipts in the name of the predecessor Depositary or its own name as successor Depositary.

 Section 5.5. Corporate Notices and Reports. 

The Corporation agrees that it will deliver to the Depositary, and the Depositary will, promptly after receipt thereof, transmit to the Record
Holders of Receipts, in each case at the addresses recorded in the Depositary’s books, copies of all notices and reports (including without limitation financial statements) required by law, by the rules of any national securities exchange upon
which the Series S Preferred Stock, the Depositary Shares or the Receipts are listed or by the Corporation’s Amended and Restated Articles of Incorporation (including the Certificate of Designations), to be furnished to the Record Holders of
Receipts. Such transmission will be at 

  
 18 

 
the Corporation’s expense and the Corporation will provide the Depositary with such number of copies of such documents as the Depositary may reasonably request. In addition, the Depositary
will transmit to the Record Holders of Receipts at the Corporation’s expense such other documents as may be requested by the Corporation. 

Section 5.6. Indemnification by the Corporation. 

Notwithstanding Section 5.3 to the contrary, the Corporation shall indemnify the Depositary, any Depositary’s
Agent and any Registrar (including each of their officers, directors, agents and employees) against, and hold each of them harmless from, any loss, damage, cost, penalty, liability or expense (including the reasonable costs and expenses of defending
itself) which may arise out of acts performed, suffered or omitted to be taken in connection with this Deposit Agreement and the Receipts by the Depositary, any Registrar or any of their respective agents (including any Depositary’s Agent) and
any transactions or documents contemplated hereby, except for any liability arising out of gross negligence, willful misconduct or bad faith on the respective parts of any such person or persons. The rights of the Depositary and the obligations of
the Corporation set forth in this Section 5.6 shall survive termination of this Deposit Agreement and any resignation or succession of any Depositary, Registrar or Depositary’s Agent. 

Section 5.7. Fees, Charges and Expenses. 

The Corporation agrees promptly to pay the Depositary the compensation to be agreed upon with the Corporation for all services rendered by the
Depositary hereunder and to reimburse the Depositary for its reasonable out-of-pocket expenses (including reasonable counsel fees and expenses) incurred by the Depositary without gross negligence, willful misconduct or bad faith on its part (or on
the part of any agent or Depositary Agent) in connection with the services rendered by it (or such agent or Depositary Agent) hereunder. The Corporation shall pay all charges of the Depositary in connection with the initial deposit of the Series S
Preferred Stock and the initial issuance of the Depositary Shares, all withdrawals of shares of Series S Preferred Stock by owners of Depositary Shares, and any redemption or exchange of the Series S Preferred Stock at the option of the Corporation.
The Corporation shall pay all transfer and other taxes and governmental charges arising solely from the existence of the depositary arrangements. All other transfer and other taxes and governmental charges shall be at the expense of Holders of
Depositary Shares evidenced by Receipts. If, at the request of a Holder of Receipts, the Depositary incurs charges or expenses for which the Corporation is not otherwise liable hereunder, such Holder will be liable for such charges and expenses;
provided, however, that the Depositary may, at its sole option, require a Holder of a Receipt to prepay the Depositary any charge or expense the Depositary has been asked to incur at the request of such Holder of Receipts. The
Depositary shall present its statement for charges and expenses to the Corporation at such intervals as the Corporation and the Depositary may agree. 

  
 19 

 ARTICLE VI 

AMENDMENT AND TERMINATION 
 Section 6.1.
Amendment. 
 The form of the Receipts and any provisions of this Deposit Agreement may at any time and from time to time be amended
by agreement between the Corporation and the Depositary in any respect which they may deem necessary or desirable; provided, however, that no such amendment which shall materially and adversely alter the rights of the Holders of
Receipts shall be effective against the Holders of Receipts unless such amendment shall have been approved by the Holders of Receipts representing in the aggregate at least a two-thirds majority of the Depositary Shares then outstanding. Every
Holder of an outstanding Receipt at the time any such amendment becomes effective shall be deemed, by continuing to hold such Receipt, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby. In no event
shall any amendment impair the right, subject to the provisions of Sections 2.5 and 2.6 and Article III, of any owner of Depositary Shares to surrender any Receipt evidencing such Depositary Shares to the
Depositary with instructions to deliver to the Holder the Series S Preferred Stock and all money and other property, if any, represented thereby, except in order to comply with mandatory provisions of applicable law or the rules and regulations of
any governmental body, agency or commission, or applicable securities exchange. As a condition precedent to the Depositary’s execution of any amendment, the corporation shall deliver to the
Depositary a certificate from a duly authorized officer of the Corporation that states that the proposed amendment is in compliance with the terms of this Section 6.1. 

Section 6.2. Termination. 
 This
Deposit Agreement may be terminated by the Corporation or the Depositary only if (i) all outstanding Depositary Shares issued hereunder have been redeemed pursuant to Section 2.8, (ii) there shall have been made a
final distribution in respect of the Series S Preferred Stock in connection with any liquidation, dissolution or winding up of the Corporation and such distribution shall have been distributed to the Holders of Receipts representing Depositary
Shares pursuant to Section 4.1 or 4.2, as applicable or (iii) upon the consent of Holders of Receipts representing in the aggregate not less than two-thirds of the Depositary Shares outstanding. 

Upon the termination of this Deposit Agreement, the parties hereto shall be discharged from all obligations under this Deposit Agreement
except for their respective obligations under Sections 5.3, 5.6 and 5.7, and the rights of the Depositary set forth in Sections 5.3, 5.6 and 5.7 shall survive the termination of this Deposit
Agreement and any resignation, removal or succession of the Depositary. 
 ARTICLE VII 

MISCELLANEOUS 
 Section 7.1.
Counterparts. 
 This Deposit Agreement may be executed in any number of counterparts, and by each of the parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall be deemed an original, but all such counterparts taken together shall constitute one and the same instrument. A signature to this Deposit Agreement transmitted
electronically shall have the same authority, effect, and enforceability as an original signature.

  
 20 

 Section 7.2. Exclusive Benefit of Parties. 

This Deposit Agreement is for the exclusive benefit of the parties hereto, and their respective successors hereunder, and shall not be deemed
to give any legal or equitable right, remedy or claim to any other person whatsoever. 
 Section 7.3. Invalidity of Provisions. 

In case any one or more of the provisions contained in this Deposit Agreement or in the Receipts should be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein or therein shall in no way be affected, prejudiced or disturbed thereby. 

Section 7.4. Notices. 
 Any and all notices to be
given to the Corporation hereunder or under the Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or sent by mail or overnight delivery service, or by telegram or facsimile transmission or electronic
mail, confirmed by letter, addressed to the Corporation at: 
 The PNC Financial Services Group, Inc. 

The Tower at PNC Plaza 
 300 Fifth
Avenue 
 Pittsburgh PA 15222-2401 

Attention: Legal Department 
 or at any other
addresses of which the Corporation shall have notified the Depositary in writing. 
 Any and all notices to be given to the Depositary hereunder or under
the Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or sent by mail or overnight delivery service, or by telegram or facsimile transmission or electronic mail, confirmed by letter, addressed to the
Depositary at: 
 Computershare Trust Company, N.A. 

250 Royall Street 
 Canton,
MA 02021 
 Attention: Client Services 
 or
at any other addresses of which the Depositary shall have notified the Corporation in writing. 
 Any and all notices to be given to any
Record Holder of a Receipt hereunder or under the Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or sent by mail or facsimile transmission or confirmed by letter, addressed to such Record Holder at
the address of such Record Holder as it appears on the books of the Depositary, or if such Holder shall have timely filed with the Depositary a written request that notices intended for such Holder be mailed to some other address, at the address
designated in such request. 

  
 21 

 Delivery of a notice sent by mail or by facsimile transmission shall be deemed to be effected at
the time when a duly addressed letter containing the same (or a confirmation thereof in the case of a facsimile transmission) is deposited, postage prepaid, in a post office letter box. The Depositary or the Corporation may, however, act upon any
facsimile transmission received by it from the other or from any Holder of a Receipt, notwithstanding that such facsimile transmission shall not subsequently be confirmed by letter or as aforesaid. 

Section 7.5. Depositary’s Agents. 

The Depositary may from time to time appoint Depositary’s Agents to act in any respect for the Depositary for the purposes of this Deposit
Agreement and may at any time appoint additional Depositary’s Agents and vary or terminate the appointment of such Depositary’s Agents. The Depositary will promptly notify the Corporation of any such action. 

Section 7.6. Appointment of Registrar, Dividend Disbursing Agent and Redemption Agent in Respect of Receipts. 

The Corporation hereby appoints Computershare Trust Company, N.A. as Registrar, and Computershare Inc. as dividend disbursing agent and
redemption agent in respect of the Receipts, and Computershare Trust Company, N.A. and Computershare Inc. hereby accept such respective appointments. 

Section 7.7. Appointment of Calculation Agent. 

The Corporation hereby names PNC Bank, National Association the calculation agent with respect to calculating the amount of dividends to be
paid with respect to the Series S Preferred Stock, and PNC Bank, National Association shall be deemed to be appointed as calculation agent only if PNC Bank, National Association has accepted such appointment in writing as agreed between PNC Bank,
National Association and the Corporation. If PNC Bank, National Association is appointed as such calculation agent, each of the Corporation and such calculation agent, in their respective capacities under such appointment, shall be entitled to the
same rights, indemnities, immunities and benefits as the Corporation and Depositary hereunder, respectively, as if explicitly named in each such provision. Also, if PNC Bank, National Association is appointed as such calculation agent, it shall be
entitled to receive a description of the calculations required under the Series S Preferred Stock and the categories of information under which it is entitled to seek guidance from the Corporation. In furtherance thereof, such calculation agent may
seek guidance from the Corporation with one day notice in making any determinations thereunder. 
 Section 7.8. Holders of Receipts Are Parties.

 The Holders of Receipts from time to time shall be parties to this Deposit Agreement and shall be bound by all of the terms and conditions
hereof and of the Receipts and of the Officer’s Certificate by acceptance of delivery thereof. 
 Section 7.9. Governing Law. 

This Deposit Agreement and the Receipts of each series and all rights hereunder and thereunder and provisions hereof and thereof shall be
governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania without giving effect to applicable conflicts of law principles, except that the rights, duties, and obligations of the Depositary under this Deposit
Agreement shall be governed by and construed in accordance with the laws of the state of Delaware. 

  
 22 

 Section 7.10. Inspection of Deposit Agreement. 

Copies of this Deposit Agreement shall be filed with the Depositary and the Depositary’s Agents and shall be open to inspection during
business hours at the Depositary’s Office and the respective offices of the Depositary’s Agents, if any, by any Holder of a Receipt. 

Section 7.11. Headings. 
 The
headings of articles and sections in this Deposit Agreement and in the form of the Receipt set forth in Exhibit A hereto have been inserted for convenience only and are not to be regarded as a part of this Deposit Agreement
or the Receipts or to have any bearing upon the meaning or interpretation of any provision contained herein or in the Receipts. 
 Section 7.12 Force
Majeure. 
 Notwithstanding anything to the contrary contained herein, the Depositary will not be liable for any delays or failures in
performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to
power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest. 
 Section 7.13
Further Assurances. 
 The Company agrees that it will perform, acknowledge, and deliver or cause to be performed, acknowledged or delivered, all such
further and other acts, documents, instruments and assurances as the Depositary may reasonably require to perform the provisions of this Deposit Agreement. 

Section 7.14 Confidentiality. 
 The Depositary and
the Company agree that all books, records, information and data pertaining to the business of the other party, including inter alia, personal, non-public Holder information and the fees for services, which are exchanged or received pursuant
to the negotiation or the carrying out of this Deposit Agreement, shall remain confidential, and shall not be voluntarily disclosed to any other person, except as may be required by law or legal process. 

[Remainder of page intentionally left blank; signature page follows.] 

  
 23 

 IN WITNESS WHEREOF, the Corporation and the Depositary have duly executed this Deposit Agreement
as of the day and year first above set forth, and all Holders of Receipts shall become parties hereto by and upon acceptance by them of delivery of Receipts issued in accordance with the terms hereof. 

 

			
	THE PNC FINANCIAL SERVICES GROUP, INC.
		
	By:	 	 /s/ Randall C. King

	Name:	 	Randall C. King
	Title:	 	Senior Vice President
	
	 COMPUTERSHARE TRUST
 COMPANY, N.A.
and
 COMPUTERSHARE INC. (on behalf
 of both
entities)

		
	By:	 	 /s/ Paul R. Capozzi

	Name:	 	Paul R. Capozzi
	Title:	 	SVP, Investor Services

 [Signature Page to Deposit Agreement] 

 EXHIBIT A 

[FORM OF FACE OF RECEIPT] 
 Unless this receipt
is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to PNC Financial Services Group, Inc. or its agent for registration of transfer, exchange, or payment, and any certificate issued
is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of
DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

 

					
	 DEPOSITARY SHARES
	 		 	    $
	 DEPOSITARY RECEIPT NO.
	 	 FOR
	 	DEPOSITARY SHARES,

 EACH REPRESENTING 1/100th OF ONE SHARE OF 

FIXED-TO-FLOATING RATE NON-CUMULATIVE PERPETUAL PREFERRED STOCK, SERIES 

S 
 OF 

THE PNC FINANCIAL SERVICES GROUP, INC. 

INCORPORATED UNDER THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA 

CUSIP 693475 AQ8 
 SEE REVERSE FOR
CERTAIN DEFINITIONS 
 Dividend Payment Dates: Beginning May 1, 2017, each May 1 and November 1 until November 1, 2026 and thereafter each
February 1, May 1, August 1 and November 1.
 COMPUTERSHARE TRUST COMPANY, N.A., as Depositary (the “Depositary”), hereby certifies that
Cede & Co. is the registered owner of DEPOSITARY SHARES (“Depositary Shares”), each Depositary Share representing 1/100th of one share of Fixed-to-Floating Rate Non-Cumulative
Perpetual Preferred Stock, Series S, liquidation preference $100,000 per share, par value $1.00 per share (the “Series S Preferred Stock”), of The PNC Financial Services Group, Inc., a Pennsylvania corporation (the
“Corporation”), on deposit with the Depositary, subject to the terms and entitled to the benefits of the Deposit Agreement dated as of November 1, 2016 (the “Deposit Agreement”), among the Corporation, the Depositary and the
Holders from time to time of the Depositary Receipts. By accepting this Depositary Receipt, the Holder hereof becomes a party to and agrees to be bound by all the terms and conditions of the Deposit Agreement. This Depositary Receipt shall not be
valid or obligatory for any purpose or entitled to any benefits under the Deposit Agreement unless it shall have been executed by the Depositary by the manual or facsimile signature of a duly authorized officer or, if executed in facsimile by the
Depositary, countersigned by a Registrar in respect of the Depositary Receipts by the manual or facsimile signature of a duly authorized officer thereof. 
  

			
	Dated:
	
	Computershare Trust Company, N.A., Depositary
		
	By:	 	  

		 	Authorized Officer

  
 A-1 

 [FORM OF REVERSE OF RECEIPT] 

THE PNC FINANCIAL SERVICES GROUP, INC. 
 THE PNC
FINANCIAL SERVICES GROUP, INC. WILL FURNISH WITHOUT CHARGE TO EACH RECEIPTHOLDER WHO SO REQUESTS A COPY OF THE DEPOSIT AGREEMENT AND A COPY OR SUMMARY OF THE CERTIFICATE OF DESIGNATIONS OF FIXED-TO-FLOATING RATE NON-CUMULATIVE PERPETUAL PREFERRED
STOCK, SERIES S OF THE PNC FINANCIAL SERVICES GROUP, INC. ANY SUCH REQUEST IS TO BE ADDRESSED TO THE DEPOSITARY NAMED ON THE FACE 
 The Corporation will
furnish without charge to each receiptholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof of the Corporation, and the qualifications,
limitations or restrictions of such preferences and/or rights. Such request may be made to the Corporation or to the Registrar. 

EXPLANATION OF ABBREVIATIONS 
 The following
abbreviations when used in the form of ownership on the face of this certificate shall be construed as though they were written out in full according to applicable laws or regulations. Abbreviations in addition to those appearing below may be used.

  

							
	 Abbreviation
	  	 Abbreviation
	  	 Abbreviation
	  	 Equivalent Word

	JT TEN	  	As joint tenants, with right of survivorship and not as tenants in common	  	TEN BY ENT	  	As tenants by the entireties
	TEN IN COM	  	As tenants in common	  	UNIF GIFT MIN ACT	  	Uniform Gifts to Minors Act

  

											
	 Abbreviation
	  	 Equivalent

Word
	  	 Abbreviation
	  	 Equivalent Word
	  	 Abbreviation
	  	 Equivalent 

Word

	ADM	  	Administrator(s), Administratrix	  	EX	  	Executor(s), Executrix	  	PL	  	Public Law
	AGMT	  	Agreement	  	FBO	  	For the benefit of	  	TR	  	(As) trustee(s), for, of
	ART	  	Article	  	FDN	  	Foundation	  	U	  	Under
	CH	  	Chapter	  	GDN	  	Guardian(s)	  	UA	  	Under Agreement
	CUST	  	Custodian for	  	GDNSHP	  	Guardianship	  	UW	  	Under will of, Of will of, Under last will & testament
	DEC	  	Declaration	  	MIN	  	Minor(s)	  		  	
	EST	  	Estate, of Estate of	  	PAR	  	Paragraph	  		  	

  
 B-1 

 For value received,              hereby sell(s),
assign(s) and transfer(s) unto 
 INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 

PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE 

Depositary Shares represented by the within Receipt, and do(es) hereby irrevocably constitute and appoint
             Attorney to transfer the said Depositary Shares on the books of the within named Depositary with full power of substitution in the premises. 

Dated: 
 NOTICE: The signature to the assignment must correspond
with the name as written upon the face of this Receipt in every particular, without alteration or enlargement or any change whatsoever. 
 SIGNATURE
GUARANTEED 
 NOTICE: If applicable, the signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan
associations, and credit unions with membership in an approved signature guarantee medallion program), pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. 

  
 B-2 

 EXHIBIT B 

I,             , [title]             
of The PNC Financial Services Group, Inc. (the “Corporation”), hereby certify that pursuant to the terms of the Statement with Respect to Shares effective October 28, 2016, filed with the Department of State of the Commonwealth of
Pennsylvania on October 28, 2016 (the “Statement”), and pursuant to resolutions adopted by Board of Directors of the Corporation on October 4, 2016 and the resolutions of the Capital Committee of the Board of Directors of the Corporation
(the “Capital Committee”) on October 27, 2016, the Corporation has established the Series S Preferred Stock which the Corporation desires to deposit with the Depositary for the purposes of being subject to the terms and conditions of the
Deposit Agreement, dated as of November 1, 2016, by and among the Corporation, Computershare Trust Company, N.A., Computershare Inc. and the Holders of Receipts issued thereunder from time to time (the “Deposit Agreement”). In connection
therewith, the Board of Directors of the Corporation or a duly authorized committee thereof has authorized the terms and conditions with respect to the Series S Preferred Stock as described in the Statement attached as Annex A hereto. Any
terms of the Series S Preferred Stock that are not so described in the Certificate of Designations and any terms of the Receipts representing such Series S Preferred Stock that are not described in the Deposit Agreement are described below: 

Aggregate Number of shares of Series S Preferred Stock issued on the day hereof: 

CUSIP Number for Receipt: [•] 
 Denomination of Depositary
Share per share of Series S Preferred Stock (if different than 1/100th of a share of Series S Preferred Stock): 
 Redemption Provisions (if different than
as set forth in the Deposit Agreement): 
 Name of Global Receipt Depositary: The Depository Trust Company 

All capitalized terms used but not defined herein shall have such meaning as ascribed thereto in the Deposit Agreement. 

  
 B-3 

 The PNC Financial Services Group, Inc. 

This certificate is dated: 
  

			
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 B-4Exhibit
4.1

 

SG
BLOCKS, INC.

STOCK
OPTION PLAN

 

1.            Establishment,
Purpose, Duration.

 

a.       Establishment.
SG Blocks, Inc. hereby establishes a stock option plan to be known as the SG Blocks, Inc. Stock Option Plan. The Plan is effective
as of October 26, 2016 (the “Effective Date”), provided that the Plan must be approved by the
stockholders of the Company within 12 months after the Effective Date in order to authorize the issuance of Incentive Stock Options
to Employees hereunder. Definitions of capitalized terms used in the Plan are set forth in Section 2 of the Plan.

 

b.       Purpose.
The purpose of the Plan is to attract and retain Directors, Consultants, and officers and other key Employees of the Company and
its Subsidiaries and to provide to such persons incentives and rewards for superior performance.

 

c.       Duration.
No Award may be granted under the Plan after the day immediately preceding the tenth anniversary of the Effective Date, or such
earlier date as the Board shall determine. The Plan will remain in effect with respect to outstanding Awards until no Awards remain
outstanding.

 

2.            Definitions.
As used in the Plan, the following definitions shall apply:

 

“Applicable
Law” means the applicable requirements relating to the administration of equity-based compensation plans under U.S.
state corporate laws, U.S. federal and state securities laws, the Code, and the applicable laws of any other country or jurisdiction
where Awards are granted under the Plan.

 

“Award”
means an award of Nonqualified Stock Options or Incentive Stock Options granted pursuant to the terms and conditions of the Plan.

 

“Award
Agreement” means (a) with respect to Award of Incentive Stock Options, an agreement, in substantially the form attached
hereto as Exhibit A, entered into by the Company and a Participant setting forth the terms and provisions applicable
to such Award, or (b) with respect to an Award of Nonqualified Stock Options, an agreement, in substantially the form attached
hereto as Exhibit B, entered into by the Company and a Participant setting forth the terms and provisions applicable
to such Award.

 

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

 

“Cause”
shall have the meaning provided in the applicable employment agreement or consulting agreement between the Participant and the
Company, if any, or if there is no such agreement that defines the term, “Cause” shall mean (a) the
willful and continued failure of the Participant to perform substantially the Participant’s duties with the Company or any
of its Subsidiaries (other than any such failure resulting from any medically determined physical or mental impairment), which
failure is not cured by the Participant within 20 calendar days after a written demand for substantial performance is delivered
to the Participant by the Board which specifically identifies the manner in which the Board believes that the Participant has
not substantially performed the Participant’s duties; (b) the engaging by the Participant in illegal conduct, gross misconduct,
gross insubordination or gross negligence that is materially and demonstrably injurious to the Company’s business or financial
condition; (c) a conviction, guilty plea or plea of nolo contendere of the Participant for any crime involving dishonesty or for
any felony; or (d) a material breach by the Participant of a fiduciary duty of loyalty or care to the Company or any of its Subsidiaries.

 

    	 		 

     

    

 

“Change
in Control” means the occurrence of any of the following: (a) an acquisition after the date hereof by an individual
or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control
(whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of fifty
percent (50%) of the voting securities of the Company (other than by means of conversion or exercise of convertible debt or equity
securities of the Company); (b) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates
with the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction
own less than fifty percent (50%) of the aggregate voting power of the Company or the successor entity of such transaction; or
(c) the Company sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company
immediately prior to such transaction own less than fifty percent (50%) of the aggregate voting power of the acquiring entity
immediately after the transaction.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Company”
means SG Blocks, Inc., a Delaware corporation, or any successor thereto.

 

“Consultant”
means an independent contractor who performs services for the Company or a Subsidiary in a capacity other than as an Employee
or Director.

 

“Date
of Grant” means the date as of which an Award is determined to be effective and designated in a resolution by the
Board and is granted pursuant to the Plan. The Date of Grant shall not be earlier than the date of the resolution and action therein
by the Board. In no event shall the Date of Grant be earlier than the Effective Date.

 

“Director”
means any individual who is a member of the Board who is not an Employee.

 

“Effective
Date” has the meaning given such term in Section 1(a).

 

“Employee”
means any employee of the Company or a Subsidiary; provided, however, that for purposes of determining whether any
person may be a Participant for purposes of any grant of Incentive Stock Options, the term “Employee”
has the meaning given to such term in Section 3401(c) of the Code, as interpreted by the regulations thereunder and Applicable
Law.

 

“Fair
Market Value” means the value of one Share on any relevant date, determined under the following rules: (a) the closing
sale price per Share on that date as reported on the principal exchange on which Shares are then trading, if any, or if there
are no sales on that date, on the next preceding trading day during which a sale occurred; (b) if the Shares are not reported
on a principal exchange or national market system, the average of the closing bid and asked prices last quoted on that date by
an established quotation service for over-the-counter securities; or (c) if neither (a) nor (b) applies, the value as determined
by the Board through the reasonable application of a reasonable valuation method, taking into account all information material
to the value of the Company, within the meaning of Section 409A of the Code.

 

“Incentive
Stock Option” or “ISO” means a Stock Option that is designated as an Incentive Stock Option
and that is intended to meet the requirements of Section 422 of the Code.

 

    	 	2	 

     

    

 

“Nonqualified
Stock Option” means a Stock Option that is not intended to meet the requirements of Section 422 of the Code
or otherwise does not meet such requirements.

 

“Participant”
means any eligible individual as set forth in Section 5 who holds one or more outstanding Awards.

 

“Performance
Objectives” means the performance objective or objectives established by the Board pursuant to the Plan. Any Performance
Objectives may relate to the performance of the Company or one or more of its Subsidiaries, divisions, departments, units, functions,
partnerships, joint ventures or minority investments, product lines or products, or the performance of the individual Participant.

 

“Person”
means an individual, corporation, partnership, limited liability company, association, joint venture, trust or other entity or
organization.

 

“Plan”
means this SG Blocks, Inc. Stock Option Plan, as amended from time to time.

 

“Share”
means a share of common stock of the Company, $0.01 par value per share, or any security into which such share of common stock
may be changed by reason of any transaction or event of the type referred to in Section 9.

 

“Stock
Option” means a right to purchase a Share granted to a Participant under the Plan in accordance with the terms and
conditions set forth in Section 6. Stock Options may be either Incentive Stock Options or Nonqualified Stock Options.

 

“Subsidiary”
means: (a) with respect to an Incentive Stock Option, a “subsidiary corporation” as defined under Section 424(f) of
the Code; and (b) for all other purposes under the Plan, any corporation or other entity in which the Company owns, directly or
indirectly, a proprietary interest of more than fifty percent (50%) by reason of stock ownership or otherwise.

 

“Ten
Percent Stockholder” means any Participant who owns more than ten percent (10%) of the combined voting power
of all classes of stock of the Company, within the meaning of Section 422 of the Code.

 

3.           Shares
Available Under the Plan.

 

a.       Shares
Available for Awards. The maximum number of Shares that may be issued or delivered pursuant to Awards under the Plan shall
be 1.5 million Shares, all of which may be granted with respect to Incentive Stock Options. Shares issued or delivered pursuant
to an Award may be authorized but unissued Shares, treasury Shares, or a combination of the foregoing. The aggregate number of
Shares available for issuance or delivery under the Plan shall be subject to adjustment as provided in Section 9.

 

b.       Share
Counting. The following Shares shall not count against the Share limit in Section 3(a): (i) Shares covered by an Award
that expires or is forfeited, canceled, surrendered, or otherwise terminated without the issuance of such Shares; (ii) Shares
covered by an Award that is settled only in cash; and (iii) Shares granted through the assumption of, or in substitution for,
outstanding awards granted by a company to individuals who become Employees or Directors as the result of a merger, consolidation,
acquisition or other corporate transaction involving such company and the Company or any of its Subsidiaries. This Section 3(b)
shall apply to the number of Shares reserved and available for Incentive Stock Options only to the extent consistent with
applicable Treasury Regulations relating to Incentive Stock Options under the Code.

 

    	 	3	 

     

    

 

4.            Administration
of the Plan.

 

a.       In
General. The Plan shall be administered by the Board. The Board shall have full and final authority in its discretion to take
all actions determined by the Board to be necessary in the administration of the Plan, including, without limitation, discretion
to: select Award recipients; determine the sizes and types of Awards; determine the terms and conditions of Awards in a manner
consistent with the Plan; grant waivers of terms, conditions, restrictions and limitations applicable to any Award, or accelerate
the vesting or exercisability of any Award, in a manner consistent with the Plan; construe and interpret the Plan and any Award
Agreement or other agreement or instrument entered into under the Plan; establish, amend, or waive rules and regulations for the
Plan’s administration; and take such other action, not inconsistent with the terms of the Plan, as the Board deems appropriate.

 

b.       Delegation
to Committees. To the extent permitted by Applicable Law, the Board may, in its discretion, delegate to one or more committees
of the Board any of the Board’s authority under the Plan. With respect to any matters so delegated, the acts of any such
committee shall be treated hereunder as acts of the Board, and all references in the Plan to the “Board” (except those
in the immediately preceding sentence) shall mean any such committee.

 

c.       Delegation
to Officers. To the extent permitted by Applicable Law, the Board may, in its discretion, delegate to one or more officers
of the Company the authority to grant Awards and such other authority under the Plan as the Board may determine; provided
that the Board shall fix the maximum number of Shares that may be subject to Awards granted by such officers under the Plan and
the maximum number of Shares that may be subject to Awards granted to any one Participant by such officers. With respect to any
matters so delegated, the acts of any such delegate shall be treated hereunder as acts of the Board, and all references in the
Plan to the “Board” (except those in the immediately preceding sentence) shall mean any such delegate.

 

d.       Determinations.
The Board shall have no obligation to treat Participants or eligible Employees, Directors or Consultants uniformly, and the Board
may make determinations under the Plan selectively among Participants who receive, or Employees, Directors or Consultants who
are eligible to receive, Awards (whether or not such Participants or eligible Employees, Directors or Consultants are similarly
situated). All determinations and decisions made by the Board pursuant to the provisions of the Plan and all related orders and
resolutions of the Board shall be final, conclusive and binding on all persons, including the Company, its Subsidiaries, stockholders,
Directors, Employees, Consultants, Participants and their estates and beneficiaries.

 

5.            Eligibility
and Participation. Each Employee, Director and Consultant is eligible to participate in the Plan. Subject to the provisions
of the Plan, the Board may, from time to time, select from all eligible Employees, Directors and Consultants those to whom Awards
shall be granted and shall determine, in its sole discretion, the nature of any and all terms permissible by Applicable Law and
the amount of each Award.

 

6.           Awards.
Subject to the terms and conditions of the Plan, Stock Options may be granted to Participants in such number, and upon such terms
and conditions, as shall be determined by the Board in its sole discretion.

 

a.       Award
Agreement. Each Stock Option shall be evidenced by an Award Agreement that shall specify the exercise price, the term of the
Stock Option, the number of Shares covered by the Stock Option, the conditions upon which the Stock Option shall become vested
and exercisable and such other terms and conditions as the Board shall determine and which are not inconsistent with the terms
and conditions of the Plan.

 

    	 	4	 

     

    

 

b.       Exercise
Price. The exercise price per Share of a Stock Option shall be determined by the Board at the time the Stock Option is granted
and shall be specified in the related Award Agreement; provided, however, that in no event shall the exercise price per
Share of any Stock Option be less than one hundred percent (100%) of the Fair Market Value of a Share on the Date of Grant.

 

c.       Term.
The term of a Stock Option shall be determined by the Board and set forth in the related Award Agreement; provided, however,
that in no event shall the term of any Stock Option exceed ten years from its Date of Grant.

 

d.       Exercisability.
Stock Options shall become vested and exercisable at such times and upon such terms and conditions as shall be determined by the
Board and set forth in the related Award Agreement. Such terms and conditions may include, without limitation, the satisfaction
of (a) performance goals based on one or more Performance Objectives, and (b) time-based vesting requirements.

 

e.       Exercise
of Stock Options. Except as otherwise provided in the Plan or in a related Award Agreement, a Stock Option may be exercised
for all or any portion of the Shares for which it is then exercisable. A Stock Option shall be exercised by the delivery of a
notice of exercise to the Company or its designee in a form specified by the Company which sets forth the number of Shares with
respect to which the Stock Option is to be exercised and full payment of the exercise price for such Shares. The exercise price
of a Stock Option may be paid, in the discretion of the Board and as set forth in the applicable Award Agreement: (i) in cash
or its equivalent; (ii) by tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate
Fair Market Value at the time of exercise equal to the aggregate exercise price; (iii) by a cashless exercise (including by withholding
Shares deliverable upon exercise and through a broker-assisted arrangement to the extent permitted by Applicable Law); (iv) by
a combination of the methods described in clauses (i), (ii) and/or (iii); or (v) through any other method approved by the
Board in its sole discretion. As soon as practicable after receipt of the notification of exercise and full payment of the exercise
price, the Company shall cause the appropriate number of Shares to be issued to the Participant.

 

f.       Special
Rules Applicable to Incentive Stock Options. Notwithstanding any other provision in the Plan to the contrary:

 

(i)       Incentive
Stock Options may be granted only to Employees of the Company and its Subsidiaries. The terms and conditions of Incentive Stock
Options shall be subject to and comply with the requirements of Section 422 of the Code.

 

(ii)       To
the extent that the aggregate Fair Market Value of the Shares (determined as of the Date of Grant) with respect to which an Incentive
Stock Option is exercisable for the first time by any Participant during any calendar year (under all plans of the Company and
its Subsidiaries) is greater than $100,000 (or such other amount specified in Section 422 of the Code), as calculated under Section
422 of the Code, then the Stock Option shall be treated as a Nonqualified Stock Option.

 

(iii)       No
Incentive Stock Option shall be granted to any Participant who, on the Date of Grant, is a Ten Percent Stockholder, unless (A)
the exercise price per Share of such Incentive Stock Option is at least one hundred and ten percent (110%) of the Fair Market
Value of a Share on the Date of Grant, and (B) the term of such Incentive Stock Option shall not exceed five (5) years from the
Date of Grant.

 

    	 	5	 

     

    

 

7.            Compliance
with Section 409A. Awards granted under the Plan shall be designed and administered in such a manner that they are either
exempt from the application of, or comply with, the requirements of Section 409A of the Code. To the extent that the Board
determines that any award granted under the Plan is subject to Section 409A of the Code, the Award Agreement shall incorporate
the terms and conditions deemed necessary by the Board to avoid the imposition of an additional tax under Section 409A of
the Code upon a Participant. Notwithstanding any other provision of the Plan or any Award Agreement (unless the Award Agreement
provides otherwise with specific reference to this Section): (a) an Award shall not be granted, deferred, accelerated, extended,
paid out, settled, substituted or modified under the Plan in a manner that would result in the imposition of an additional tax
under Section 409A of the Code upon a Participant; and (b) if an Award is subject to Section 409A of the Code, and if
the Participant holding the award is a “specified employee” (as defined in Section 409A of the Code, with such
classification to be determined in accordance with the methodology established by the Company), then, to the extent required to
avoid the imposition of an additional tax under Section 409A of the Code upon a Participant, no distribution or payment of
any amount shall be made before the date that is six months following the date of such Participant’s “separation from
service” (as defined in Section 409A of the Code) or, if earlier, the date of the Participant’s death. Although
the Company intends to administer the Plan so that Awards will be exempt from, or will comply with, the requirements of Section 409A
of the Code, the Company does not warrant that any Award under the Plan will qualify for favorable tax treatment under Section 409A
of the Code or any other provision of federal, state, local, or non-United States law. The Company shall not be liable to any
Participant for any tax, interest, or penalties the Participant might owe as a result of the grant, holding, vesting, exercise,
or payment of any Award under the Plan.

 

8.            Transferability.
Except as otherwise determined by the Board, no Award shall be transferable by the Participant except by will or the laws of descent
and distribution; provided, that if so determined by the Board, each Participant may, in a manner established by the Board,
designate a beneficiary to exercise the rights of the Participant with respect to any Award upon the death of the Participant
and to receive Shares or other property issued or delivered under such Award. Except as otherwise determined by the Board, Stock
Options will be exercisable during a Participant’s lifetime only by the Participant or, in the event of the Participant’s
legal incapacity to do so, by the Participant’s guardian or legal representative acting on behalf of the Participant in
a fiduciary capacity under state law and/or court supervision.

 

9.            Adjustments.
In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards Codification
Topic 718, Compensation – Stock Compensation), such as a stock dividend, stock split, reverse stock split, spinoff, rights
offering, or recapitalization through a large, nonrecurring cash dividend, the Board shall cause there to be an equitable adjustment
in the numbers of Shares specified in Section 3 of the Plan and, with respect to outstanding Awards, in the number
and kind of Shares subject to outstanding Awards and the exercise price or other price of Shares subject to outstanding Awards,
in each case to prevent dilution or enlargement of the rights of Participants. In the event of any other change in corporate capitalization,
or in the event of a merger, consolidation, liquidation, or similar transaction, the Board may, in its sole discretion, cause
there to be an equitable adjustment as described in the foregoing sentence, to prevent dilution or enlargement of rights; provided,
however, that, unless otherwise determined by the Board, the number of Shares subject to any Award shall always be rounded
down to a whole number. Notwithstanding the foregoing, the Board shall not make any adjustment pursuant to this Section 9
that would (i) cause any Stock Option intended to qualify as an ISO to fail to so qualify, (ii) cause an Award that is
otherwise exempt from Section 409A of the Code to become subject to Section 409A, or (iii) cause an Award that is subject to Section
409A of the Code to fail to satisfy the requirements of Section 409A. The determination of the Board as to the foregoing adjustments,
if any, shall be conclusive and binding on all Participants and any other persons claiming under or through any Participant.

 

    	 	6	 

     

    

 

10.          Fractional
Shares. The Company shall not be required to issue or deliver any fractional Shares pursuant to the Plan and, unless otherwise
provided by the Board, fractional Shares shall be settled in cash.

 

11.          Withholding
Taxes. To the extent required by Applicable Law, a Participant shall be required to satisfy, in a manner satisfactory to the
Company or Subsidiary, as applicable, any withholding tax obligations that arise by reason of a Stock Option exercise, an election
pursuant to Section 83(b) of the Code or otherwise with respect to an Award. The Company and its Subsidiaries shall not be
required to issue or deliver Shares, make any payment or recognize the transfer or disposition of Shares until such obligations
are satisfied. The Board may permit or require these obligations to be satisfied by having the Company withhold a portion of the
Shares that otherwise would be issued or delivered to a Participant upon exercise of a Stock Option, or by tendering Shares previously
acquired, in each case having a Fair Market Value equal to the minimum amount required to be withheld or paid. Any such elections
are subject to such conditions or procedures as may be established by the Board and may be subject to disapproval by the Board.

 

12.          Foreign
Employees. Without amending the Plan, the Board may grant Awards to Participants who are foreign nationals, or who are subject
to Applicable Law of one or more non-United States jurisdictions, on such terms and conditions different from those specified
in the Plan as may in the judgment of the Board be necessary or desirable to foster and promote achievement of the purposes of
the Plan, and, in furtherance of such purposes, the Board may make such modifications, amendments, procedures, and the like as
may be necessary or advisable to comply with provisions of Applicable Law of other countries in which the Company or its Subsidiaries
operate or have employees.

 

13.          Termination
for Cause; Forfeiture of Awards.

 

a.       Termination
for Cause. If a Participant’s employment or service is terminated by the Company or a Subsidiary for Cause, as determined
by the Board in its sole discretion, then, promptly upon receiving notice of the Board’s determination, the Participant
shall: (i) forfeit all Awards granted under the Plan to the extent then held by the Participant; (ii) return to the Company
or the Subsidiary all Shares that the Participant has not disposed of that had been acquired pursuant to all Awards granted under
the Plan, in exchange for payment by the Company or the Subsidiary of any amount actually paid therefor by the Participant; and
(iii) with respect to any Shares acquired pursuant to an Award granted under the Plan that were disposed of, pay to the Company
or the Subsidiary, in cash, the excess, if any, of: (A) the Fair Market Value of the Shares on the date acquired, over (B) any
amount actually paid by the Participant for the Shares.

 

b.       Compensation
Recovery Policy. Any Award granted to a Participant shall be subject to forfeiture or repayment pursuant to the terms of any
applicable compensation recovery policy adopted by the Company, including any such policy that may be adopted to comply with Applicable
Law.

 

c.       Set-Off
and Other Remedies. To the extent that amounts are not immediately returned or paid to the Company as provided in this Section
13, the Company may, to the extent permitted by Applicable Law, seek other remedies, including a set off of the amounts so
payable to it against any amounts that may be owing from time to time by the Company or a Subsidiary to the Participant for any
reason, including, without limitation, wages, or vacation pay or other benefits; provided, however, that, except to the
extent permitted by Treasury Regulation Section 1.409A-3(j)(4), such offset shall not apply to amounts that are “deferred
compensation” within the meaning of Section 409A of the Code.

 

    	 	7	 

     

    

 

14.          Change
in Control. In the event of a Change in Control, the Board, in its sole discretion, may take such actions, if any, as it deems
necessary or desirable with respect to any Award that is outstanding as of the date of the consummation of the Change in Control.
Such actions may include, without limitation: (a) the acceleration of the vesting, settlement and/or exercisability of an Award;
(b) the payment of a cash amount in exchange for the cancellation of an Award; (c) the cancellation of Stock Options without payment
therefor if the Fair Market Value of a Share on the date of the Change in Control does not exceed the exercise price per Share
of the applicable Awards; and/or (d) the issuance of substitute Awards that substantially preserve the value, rights and
benefits of any affected Awards.

 

15.          Amendment,
Modification and Termination.

 

a.       In
General. The Board may at any time and from time to time, alter, amend, suspend or terminate the Plan in whole or in part.

 

b.       Adjustments
to Outstanding Awards. The Board may in its sole discretion at any time (i) provide that all or a portion of a Participant’s
Stock Options that may be exercised shall become fully or partially exercisable; (ii) provide that all or a part of the time-based
vesting restrictions on all or a portion of the outstanding Awards shall lapse, and/or that any Performance Objectives or other
performance-based criteria with respect to any Awards shall be deemed to be wholly or partially satisfied; or (iii) waive any
other limitation or requirement under any such Award, in each case, as of such date as the Board may, in its sole discretion,
declare. Additionally, the Board shall not make any adjustment pursuant to this Section 15(b) that would cause an
Award that is otherwise exempt from Section 409A of the Code to become subject to Section 409A, or that would cause
an Award that is subject to Section 409A of the Code to fail to satisfy the requirements of Section 409A.

 

c.       Effect
on Outstanding Awards. Notwithstanding any other provision of the Plan to the contrary (other than Sections 9,
14, 15(b) and 17(d)), no termination, amendment, suspension, or modification of the Plan or an Award Agreement
shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the Participant
holding such Award; provided that the Board may modify an ISO held by a Participant to disqualify such Stock Option from
treatment as an “incentive stock option” under Section 422 of the Code without the Participant’s consent.

 

16.          Applicable
Law. The obligations of the Company with respect to Awards under the Plan shall be subject to Applicable Law and such approvals
by any governmental agencies as the Board determines may be required. The Plan and each Award Agreement shall be governed by the
laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction
or interpretation of the Plan to the substantive law of another jurisdiction.

 

17.          Miscellaneous.

 

a.       Conditions
on Delivery of Shares. The Company will not be obligated to deliver any Shares pursuant to the Plan or to remove restrictions
from Shares previously delivered under the Plan until (i) all conditions of the Award have been met or removed to the satisfaction
of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters in connection with the issuance and
delivery of such Shares have been satisfied, including any applicable securities laws and any applicable stock exchange or stock
market rules and regulations, and (iii) the Participant has executed and delivered to the Company such representations or agreements
as the Company may consider appropriate to satisfy the requirements of Applicable Law. Unless and until the Shares have been registered
under the Securities Act of 1933, as amended, each certificate evidencing any Shares delivered pursuant to the Plan shall bear
a restrictive legend specified by the Company.

 

    	 	8	 

     

    

 

b.       No
Right of Continued Employment or Service. The Plan shall not confer upon any Participant any right with respect to continuance
of employment or other service with the Company or any Subsidiary, nor shall it interfere in any way with any right the Company
or any Subsidiary would otherwise have to terminate such Participant’s employment or other service at any time. No Employee,
Director or Consultant shall have the right to be selected to receive an Award under the Plan, or, having been so selected, to
be selected to receive future Awards.

 

c.       Unfunded,
Unsecured Plan. Neither a Participant nor any other person shall, by reason of participation in the Plan, acquire any right
or title to any assets, funds or property of the Company or any Subsidiary, including without limitation, any specific funds,
assets or other property which the Company or any Subsidiary may set aside in anticipation of any liability under the Plan. A
Participant shall have only a contractual right to an Award or the amounts, if any, payable under the Plan, unsecured by any assets
of the Company or any Subsidiary, and nothing contained in the Plan shall constitute a guarantee that the assets of the Company
or any Subsidiary shall be sufficient to pay any benefits to any person.

 

d.       Severability.
If any provision of the Plan is or becomes invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan
or any Award under any law deemed applicable by the Board, such provision shall be construed or deemed amended or limited in scope
to conform to Applicable Law or, in the discretion of the Board, it shall be stricken and the remainder of the Plan shall remain
in full force and effect.

 

e.       Acceptance
of the Plan. By accepting any benefit under the Plan, each Participant and each person claiming under or through any such
Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, all of the terms
and conditions of the Plan and any action taken under the Plan by the Board or the Company, in any case in accordance with the
terms and conditions of the Plan.

 

f.       Successors.
All obligations of the Company under the Plan and with respect to Awards shall be binding on any successor to the Company, whether
the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or other event, or a sale
or disposition of all or substantially all of the business and/or assets of the Company and references to the “Company”
herein and in any Award Agreements shall be deemed to refer to such successors.

 

[END
OF DOCUMENT]

 

    9

     

    

 

EXHIBIT A

FORM
OF AWARD AGREEMENT – INCENTIVE STOCK OPTION

 

SG
BLOCKS, INC.

INCENTIVE STOCK OPTION AGREEMENT

 

Notice
of Stock Option Grant

 

SG
Blocks, Inc., a Delaware corporation (the “Company”), grants to the Grantee named below, in accordance
with the terms of the SG Blocks, Inc. Stock Option Plan (the “Plan”) and this Incentive Stock Option
Agreement (this “Agreement”), an option (the “Stock Option”) to purchase the
number of Shares at the exercise price per share (“Exercise Price”) as follows:

 

	 	Name
    of Grantee:	______________________________
	 	 	 
	 	Number
    of Shares:	______________________________
	 	 	 
	 	Exercise
    Price:	$____
    per Share
	 	 	 
	 	Date
    of Grant:	______________________________
	 	 	 
	 	Vesting
    Dates:	______________________________

 

Terms
of Agreement

 

1.            Grant
of Stock Option. Subject to and upon the terms, conditions and restrictions set forth in this Agreement and in the Plan, the
Company hereby grants to the Grantee as of the Date of Grant this Stock Option to purchase the number of Shares at the Exercise
Price as set forth above. This Stock Option is intended to be, and shall be treated as, an “incentive stock option”
within the meaning of that term under Section 422 of the Code.

 

2.            Vesting
of Stock Option.

 

(a)       Unless
and until terminated as hereinafter provided, the Stock Option shall vest and become exercisable as follows:

 

 

 

 

 

 

 

(b)       Notwithstanding the provisions of Section 2(a), the Stock Option will become immediately vested and exercisable in
full if, prior to the applicable Vesting Date: (i) the Grantee’s employment with the Company and its Subsidiaries
terminates by reason of the Grantee’s death or “Disability” (defined as permanent and total
disability within the meaning of Section 22(e)(3) of the Code); or (ii) the Grantee’s employment is terminated within
two years after a Change in Control: (A) by the Company and its Subsidiaries without Cause and not as a result of Disability;
or (B) by the Grantee for Good Reason (defined as in Section 2(c) of this Agreement).

 

    A-1

     

    

 

(c)       For
purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following without
the Grantee’s consent: (i) a material reduction of the Grantee’s annual base salary; (ii) a material reduction in
the Grantee’s title, authority, responsibilities or reporting relationship as in effect immediately prior to the Change
in Control; or (iii) the Company’s requirement that in order to perform his obligations to the Company, the Grantee must
relocate his residence to a location more than 50 miles from the Grantee’s principal office location immediately prior to
a Change in Control. A termination of the Grantee’s employment by the Grantee shall not be deemed to be for Good Reason
unless (A) the Grantee gives notice to the Company of the existence of the event or condition constituting Good Reason within
60 calendar days after such event or condition initially occurs or exists, and (B) the Company fails to cure such event or condition
within 30 calendar days after receiving such notice.

 

(d)       For
purposes of this Agreement, the continuous employment of the Grantee with the Company and its Subsidiaries shall not be deemed
to have been interrupted, and the Grantee shall not be deemed to have ceased to be an employee of the Company and its Subsidiaries,
by reason of the transfer of his employment among the Company and its Subsidiaries or a leave of absence approved by the Board.

 

3.            Forfeiture
of Stock Option.

 

(a)       To
the extent that the Stock Option has not yet vested pursuant to Section 2 above, it shall be forfeited automatically without
further action or notice if the Grantee ceases to be employed by the Company and its Subsidiaries prior to the applicable Vesting
Date other than as provided in Section 2(b).

 

(b)       The
provisions of Section 13 of the Plan regarding forfeiture of Awards shall apply to the Stock Option and any Shares delivered
hereunder. This Section 3(b) shall survive and continue in full force in accordance with its terms notwithstanding any
termination of the Grantee’s employment or the exercise of the Stock Option as provided herein.

 

4.            Exercise
of Stock Option.

 

(a)       To
the extent that the Stock Option has become vested and exercisable in accordance with this Agreement, it may be exercised in whole
or in part from time to time by written notice to the Company stating the number of whole Shares for which the Stock Option is
being exercised, the intended manner of payment, and such other provisions as may be required by the Company. The Stock Option
may be exercised, during the lifetime of the Grantee, only by the Grantee, or in the event of his legal incapacity, by his guardian
or legal representative acting on behalf of the Grantee in a fiduciary capacity under state law and/or court supervision. If the
Grantee dies before the expiration of the Stock Option, all or part of this Stock Option may be exercised (prior to expiration)
by the personal representative of the Grantee or by any person who has acquired this Stock Option directly from the Grantee by
will, bequest or inheritance, but only to the extent that the Stock Option was vested and exercisable upon the Grantee’s
death.

 

(b)       The
Exercise Price is payable in cash or by certified or cashier’s check or other cash equivalent acceptable to the Board payable
to the order of the Company.

 

5.            Term
of Stock Option. Subject to Section 3(b) hereof, the Stock Option will terminate on the earliest of the following dates
(the “Expiration Date”):

 

(a)       Twelve
months after the termination of the Grantee’s employment as a result of death or Disability;

 

    A-2

     

    

 

(b)       Immediately
upon termination of the Grantee’s employment by the Company for Cause;

 

(c)       90
days after the termination of the Grantee’s employment for any other reason; or

 

(d)       Midnight
on the day immediately preceding the tenth anniversary (or the fifth anniversary, if the Grantee is a Ten Percent Stockholder)
of the Date of Grant.

 

6.            Delivery
of Shares. Subject to the terms and conditions of this Agreement and the Plan, Shares shall be issuable to the Grantee as
soon as administratively practicable following the date the Grantee (a) exercises the Stock Option in accordance with Section
4 hereof, (b) makes full payment to the Company of the Exercise Price and (c) makes arrangements satisfactory to the Company
(or any Subsidiary, if applicable) for the payment of any required withholding taxes related to the exercise of the Stock Option.
The Grantee shall not possess any incidents of ownership (including, without limitation, dividend or voting rights) in the Shares
until such Shares have been issued to the Grantee in accordance with this Section 6.

 

7.            Transferability.
The Stock Option may not be sold, exchanged, assigned, transferred, pledged, encumbered or otherwise disposed of by the Grantee;
provided that the Grantee’s rights with respect to such Stock Option may be transferred by will or pursuant to the
laws of descent and distribution. Any purported transfer or encumbrance in violation of the provisions of this Section 7
shall be void, and the other party to any such purported transaction shall not obtain any rights to or interest in such Stock
Option.

 

8.            Restrictions
on Resale. Unless and until registered under the Securities Act of 1933, as amended (the “Securities Act”),
any Shares purchased pursuant to the Stock Option will be illiquid and will be deemed to be “restricted securities”
for purposes of the Securities Act. Accordingly, any such Shares may be sold only in compliance with the registration requirements
of the Securities Act or an exemption therefrom and may need to be held indefinitely. Unless and until the Shares have been registered
under the Securities Act, each certificate evidencing any of the Shares shall bear a restrictive legend specified by the Company.

 

9.            Company’s
Right to Repurchase Shares.

 

(a)       The
Company shall have the right (the “Repurchase Right”) to repurchase all, but not less than all, of the
Shares purchased by the Grantee pursuant to the Stock Option, upon written notice to the Grantee within 90 days after the termination
of the Grantee’s employment with the Company and its Subsidiaries, voluntarily or involuntarily, for any reason whatsoever
other than by the Company for Cause, including as a result of death or Disability. The Repurchase Right shall be exercised by
the Company by giving the holder of the Shares written notice of its intention to exercise the Repurchase Right, and, together
with such notice, tendering to the holder an amount equal to the Fair Market Value of the Shares. Upon timely exercise of the
Repurchase Right in the manner provided in this Section 9(a), the holder of the Shares shall deliver to the Company any
stock certificate or certificates representing the Shares being repurchased, duly endorsed and free and clear of any and all liens,
charges and encumbrances. If Shares are not repurchased under the Repurchase Right, the Grantee and his successor in interest,
if any, will continue to hold the Shares subject to all of the provisions of this Agreement and the Plan.

 

(b)       In
the event that the Company or a Subsidiary terminates the Grantee’s employment for Cause, the Company’s rights with
respect to any Shares purchased by the Grantee pursuant to the Stock Option shall be governed by Section 3(b) of this Agreement
and Section 13 of the Plan.

 

    A-3

     

    

 

10.            No
Right to Continued Employment. Nothing contained in this Agreement shall confer upon the Grantee any right with respect to
continuance of employment by the Company and its Subsidiaries, nor limit or affect in any manner the right of the Company and
its Subsidiaries to terminate the employment of the Grantee or adjust the Grantee’s compensation.

 

11.            Relation
to Other Benefits. Any economic or other benefit to the Grantee under this Agreement or the Plan shall not be taken into account
in determining any benefits to which the Grantee may be entitled under any profit-sharing, retirement or other benefit or compensation
plan or arrangement maintained by the Company or a Subsidiary.

 

12.            Taxes
and Withholding. The Grantee shall pay to the Company, or make arrangements satisfactory to the Company for payment of, any
federal, state, local or other taxes that the Company or any Subsidiary is required to withhold in connection with the delivery
of Shares under this Agreement. The obligation of the Company to deliver Shares under this Agreement shall be conditioned on such
payment or arrangements, and the Company and its Subsidiaries shall, to the extent permitted by Applicable Law, have the right
to deduct any such taxes from any payment otherwise due to the Grantee.

 

13.            Mandatory
Notice of Disqualifying Disposition. Without limiting any other provision hereof, the Grantee hereby agrees that if he or
she disposes (whether by sale, exchange, gift, or otherwise) of Shares received from the exercise of any of the Stock Option within
two years of the Date of Grant or within one year of the exercise of the Stock Option by the Grantee, the Grantee shall notify
the Company of such disposition in writing within 30 days from the date of such disposition. Such written notice shall state the
principal terms of such disposition and the type and amount of the consideration received for the Shares by the Grantee in connection
therewith.

 

14.            Compliance
with Applicable Law. The Company shall make reasonable efforts to comply with Applicable Law (including applicable federal
and state securities laws) with respect to the Stock Option; provided that, notwithstanding any other provision of this
Agreement, and only to the extent permitted under Section 409A of the Code, the Company shall not be obligated to deliver any
Shares pursuant to this Agreement if the delivery thereof would result in a violation of Applicable Law.

 

15.            Adjustments.
The Exercise Price and the number and kind of shares of stock covered by this Agreement shall be subject to adjustment as provided
in Section 9 of the Plan.

 

16.            Amendments.
Subject to the terms of the Plan, the Board may modify this Agreement upon written notice to the Grantee. Any amendment to the
Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto. Notwithstanding
the foregoing, no amendment of the Plan or this Agreement shall adversely affect the rights of the Grantee under this Agreement
in a material way without the Grantee’s consent, except as otherwise may be provided in the Plan.

 

17.            Severability.
In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent
jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.

 

    A-4

     

    

 

18.            Relation
to Plan. This Agreement is subject to the terms and conditions of the Plan, including the forfeiture provisions of Section
13 of the Plan. This Agreement and the Plan contain the entire agreement and understanding of the parties with respect to
the subject matter contained in this Agreement, and supersede all prior written or oral communications, representations and negotiations
in respect thereto. In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern.
Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan. The Board shall have the
right to determine any questions which arise in connection with the grant of the Stock Option.

 

19.            Successors
and Assigns. Without limiting Section 7 hereof, the provisions of this Agreement shall inure to the benefit of, and
be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Grantee, and the successors and
assigns of the Company.

 

20.            Governing
Law. The interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the State of Delaware,
excluding any conflicts or choice of law rule or principle that might otherwise refer interpretation or enforcement of the Agreement
to the substantive law of another jurisdiction.

 

21.            Use
of Grantee’s Information. Information about the Grantee and the Grantee’s participation in the Plan may be collected,
recorded and held, used and disclosed for any purpose related to the administration of the Plan. The Grantee understands that
such processing of this information may need to be carried out by the Company and its Subsidiaries and by third party administrators
whether such persons are located within the Grantee’s country or elsewhere, including the United States of America. The
Grantee consents to the processing of information relating to the Grantee and the Grantee’s participation in the Plan in
any one or more of the ways referred to above.

 

(signature
page follows)

 

    A-5

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Agreement to be executed on its behalf by its duly authorized officer and the Grantee has also executed this Agreement,
as of the Date of Grant.

 

	 	SG BLOCKS, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title	 

  

The undersigned Grantee
hereby acknowledges receipt of a copy of the Plan. The Grantee represents that he is familiar with the terms and provisions of
the Plan, has had an opportunity to obtain the advice of counsel prior to executing this Agreement, and hereby accepts the Stock
Option on the terms and conditions set forth herein and in the Plan.

 

	 	GRANTEE
	 	 
	 	 
	 	[Name]

 

    A-6

     

    

  

EXHIBIT B

FORM
OF AWARD AGREEMENT – NONQUALIFIED STOCK OPTION

 

SG
BLOCKS, INC.

NONQUALIFIED STOCK OPTION AGREEMENT

 

Notice
of Stock Option Grant

 

SG
Blocks, Inc., a Delaware corporation (the “Company”), grants to the Grantee named below, in accordance
with the terms of the SG Blocks, Inc. Stock Option Plan (the “Plan”) and this Nonqualified Stock Option
Agreement (this “Agreement”), an option (the “Stock Option”) to purchase the
number of Shares at the exercise price per share (“Exercise Price”) as follows:

 

	 	Name
    of Grantee:	_______________________________
	 	 	 
	 	Number
    of Shares:  	_______________________________
	 	 	 
	 	Exercise
    Price:	$____
    per Share
	 	 	 
	 	Date
    of Grant:	_______________________________
	 	 	 
	 	Vesting
    Dates:  	_______________________________

 

Terms
of Agreement

 

1.            Grant
of Stock Option. Subject to and upon the terms, conditions and restrictions set forth in this Agreement and in the Plan, the
Company hereby grants to the Grantee as of the Date of Grant this Stock Option to purchase the number of Shares at the Exercise
Price as set forth above. This Stock Option is intended to be a nonqualified stock option and shall not be treated as an “incentive
stock option” within the meaning of that term under Section 422 of the Code.

 

2.            Vesting
of Stock Option.

 

(a)       Unless
and until terminated as hereinafter provided, the Stock Option shall vest and become exercisable as follows:

 

 

 

 

 

 

 

(b)       Notwithstanding
the provisions of Section 2(a), the Stock Option will become immediately vested and exercisable in full if, prior to the
applicable Vesting Date: (i) the Grantee’s employment or service with the Company and its Subsidiaries terminates by reason
of the Grantee’s death or “Disability” (defined as permanent and total disability within the meaning
of Section 22(e)(3) of the Code); or (ii) the Grantee’s employment or service is terminated within two years after a Change
in Control: (A) by the Company and its Subsidiaries without Cause and not as a result of Disability; or (B) by the Grantee
for Good Reason (defined as in Section 2(c) of this Agreement).

 

    B-1

     

    

 

(c)       For
purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following without
the Grantee’s consent: (i) a material reduction of the Grantee’s annual base salary; (ii) a material reduction in
the Grantee’s title, authority, responsibilities or reporting relationship as in effect immediately prior to the Change
in Control; or (iii) the Company’s requirement that in order to perform his obligations to the Company, the Grantee must
relocate his residence to a location more than 50 miles from the Grantee’s principal office location immediately prior to
a Change in Control. A termination of the Grantee’s employment or service by the Grantee shall not be deemed to be for Good
Reason unless (A) the Grantee gives notice to the Company of the existence of the event or condition constituting Good Reason
within 60 calendar days after such event or condition initially occurs or exists, and (B) the Company fails to cure such event
or condition within 30 calendar days after receiving such notice.

 

(d)       For
purposes of this Agreement, the continuous employment or service of the Grantee with the Company and its Subsidiaries shall not
be deemed to have been interrupted, and the Grantee shall not be deemed to have ceased to be an employee of, or service provider
to, the Company and its Subsidiaries, by reason of the transfer of his employment or service among the Company and its Subsidiaries
or a leave of absence approved by the Board.

 

3.            Forfeiture
of Stock Option.

 

(a)       To
the extent that the Stock Option has not yet vested pursuant to Section 2 above, it shall be forfeited automatically without
further action or notice if the Grantee ceases to be employed by, or to provide services to, the Company and its Subsidiaries
prior to the applicable Vesting Date other than as provided in Section 2(b).

 

(b)       The
provisions of Section 13 of the Plan regarding forfeiture of Awards shall apply to the Stock Option and any Shares delivered
hereunder. This Section 3(b) shall survive and continue in full force in accordance with its terms notwithstanding any
termination of the Grantee’s employment or service or the exercise of the Stock Option as provided herein.

 

4.            Exercise
of Stock Option.

 

(a)       To
the extent that the Stock Option has become vested and exercisable in accordance with this Agreement, it may be exercised in whole
or in part from time to time by written notice to the Company stating the number of whole Shares for which the Stock Option is
being exercised, the intended manner of payment, and such other provisions as may be required by the Company. The Stock Option
may be exercised, during the lifetime of the Grantee, only by the Grantee, or in the event of his legal incapacity, by his guardian
or legal representative acting on behalf of the Grantee in a fiduciary capacity under state law and/or court supervision. If the
Grantee dies before the expiration of the Stock Option, all or part of this Stock Option may be exercised (prior to expiration)
by the personal representative of the Grantee or by any person who has acquired this Stock Option directly from the Grantee by
will, bequest or inheritance, but only to the extent that the Stock Option was vested and exercisable upon the Grantee’s
death.

 

(b)       The
Exercise Price is payable in cash or by certified or cashier’s check or other cash equivalent acceptable to the Board payable
to the order of the Company.

 

5.            Term
of Stock Option. Subject to Section 3(b) hereof, the Stock Option will terminate on the earliest of the following dates
(the “Expiration Date”):

 

    B-2

     

    

 

(a)       Twelve
months after the termination of the Grantee’s employment or service as a result of death or Disability;

 

(b)       Immediately
upon termination of the Grantee’s employment or service by the Company for Cause;

 

(c)       90
days after the termination of the Grantee’s employment or service for any other reason; or

 

(d)       Midnight
on the day immediately preceding the tenth anniversary of the Date of Grant.

 

6.            Delivery
of Shares. Subject to the terms and conditions of this Agreement and the Plan, Shares shall be issuable to the Grantee as
soon as administratively practicable following the date the Grantee (a) exercises the Stock Option in accordance with Section
4 hereof, (b) makes full payment to the Company of the Exercise Price and (c) makes arrangements satisfactory to the Company
(or any Subsidiary, if applicable) for the payment of any required withholding taxes related to the exercise of the Stock Option.
The Grantee shall not possess any incidents of ownership (including, without limitation, dividend or voting rights) in the Shares
until such Shares have been issued to the Grantee in accordance with this Section 6.

 

7.            Transferability.
The Stock Option may not be sold, exchanged, assigned, transferred, pledged, encumbered or otherwise disposed of by the Grantee;
provided that the Grantee’s rights with respect to such Stock Option may be transferred by will or pursuant to the
laws of descent and distribution. Any purported transfer or encumbrance in violation of the provisions of this Section 7
shall be void, and the other party to any such purported transaction shall not obtain any rights to or interest in such Stock
Option.

 

8.            Restrictions
on Resale. Unless and until registered under the Securities Act of 1933, as amended (the “Securities Act”),
any Shares purchased pursuant to the Stock Option will be illiquid and will be deemed to be “restricted securities”
for purposes of the Securities Act. Accordingly, any such Shares may be sold only in compliance with the registration requirements
of the Securities Act or an exemption therefrom and may need to be held indefinitely. Unless and until the Shares have been registered
under the Securities Act, each certificate evidencing any of the Shares shall bear a restrictive legend specified by the Company.

 

9.            Company’s
Right to Repurchase Shares.

 

(a)       The
Company shall have the right (the “Repurchase Right”) to repurchase all, but not less than all, of the
Shares purchased by the Grantee pursuant to the Stock Option, upon written notice to the Grantee within 90 days after the termination
of the Grantee’s employment or service with the Company and its Subsidiaries, voluntarily or involuntarily, for any reason
whatsoever other than by the Company for Cause, including as a result of death or Disability. The Repurchase Right shall be exercised
by the Company by giving the holder of the Shares written notice of its intention to exercise the Repurchase Right, and, together
with such notice, tendering to the holder an amount equal to the Fair Market Value of the Shares. Upon timely exercise of the
Repurchase Right in the manner provided in this Section 9(a), the holder of the Shares shall deliver to the Company any
stock certificate or certificates representing the Shares being repurchased, duly endorsed and free and clear of any and all liens,
charges and encumbrances. If Shares are not repurchased under the Repurchase Right, the Grantee and his successor in interest,
if any, will continue to hold the Shares subject to all of the provisions of this Agreement and the Plan.

 

    B-3

     

    

 

(b)       In
the event that the Company or a Subsidiary terminates the Grantee’s employment or service for Cause, the Company’s
rights with respect to any Shares purchased by the Grantee pursuant to the Stock Option shall be governed by Section 3(b)
of this Agreement and Section 13 of the Plan.

 

10.            No
Right to Continued Employment or Service. Nothing contained in this Agreement shall confer upon the Grantee any right with
respect to continuance of employment by or service with the Company and its Subsidiaries, nor limit or affect in any manner the
right of the Company and its Subsidiaries to terminate the employment or service of the Grantee or adjust the Grantee’s
compensation.

 

11.            Relation
to Other Benefits. Any economic or other benefit to the Grantee under this Agreement or the Plan shall not be taken into account
in determining any benefits to which the Grantee may be entitled under any profit-sharing, retirement or other benefit or compensation
plan or arrangement maintained by the Company or a Subsidiary.

 

12.            Taxes
and Withholding. The Grantee shall pay to the Company, or make arrangements satisfactory to the Company for payment of, any
federal, state, local or other taxes that the Company or any Subsidiary is required to withhold in connection with the delivery
of Shares under this Agreement. The obligation of the Company to deliver Shares under this Agreement shall be conditioned on such
payment or arrangements, and the Company and its Subsidiaries shall, to the extent permitted by Applicable Law, have the right
to deduct any such taxes from any payment otherwise due to the Grantee.

 

13.            Compliance
with Applicable Law. The Company shall make reasonable efforts to comply with Applicable Law (including applicable federal
and state securities laws) with respect to the Stock Option; provided that, notwithstanding any other provision of this
Agreement, and only to the extent permitted under Section 409A of the Code, the Company shall not be obligated to deliver any
Shares pursuant to this Agreement if the delivery thereof would result in a violation of Applicable Law.

 

14.            Adjustments.
The Exercise Price and the number and kind of shares of stock covered by this Agreement shall be subject to adjustment as provided
in Section 9 of the Plan.

 

15.            Amendments.
Subject to the terms of the Plan, the Board may modify this Agreement upon written notice to the Grantee. Any amendment to the
Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto. Notwithstanding
the foregoing, no amendment of the Plan or this Agreement shall adversely affect the rights of the Grantee under this Agreement
in a material way without the Grantee’s consent, except as otherwise may be provided in the Plan.

 

16.            Severability.
In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent
jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.

 

17.            Relation
to Plan. This Agreement is subject to the terms and conditions of the Plan, including the forfeiture provisions of Section
13 of the Plan. This Agreement and the Plan contain the entire agreement and understanding of the parties with respect to
the subject matter contained in this Agreement, and supersede all prior written or oral communications, representations and negotiations
in respect thereto. In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern.
Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan. The Board shall have the
right to determine any questions which arise in connection with the grant of the Stock Option.

 

    B-4

     

    

 

18.            Successors
and Assigns. Without limiting Section 7 hereof, the provisions of this Agreement shall inure to the benefit of, and
be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Grantee, and the successors and
assigns of the Company.

 

19.            Governing
Law. The interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the State of Delaware,
excluding any conflicts or choice of law rule or principle that might otherwise refer interpretation or enforcement of the Agreement
to the substantive law of another jurisdiction.

 

20.            Use
of Grantee’s Information. Information about the Grantee and the Grantee’s participation in the Plan may be collected,
recorded and held, used and disclosed for any purpose related to the administration of the Plan. The Grantee understands that
such processing of this information may need to be carried out by the Company and its Subsidiaries and by third party administrators
whether such persons are located within the Grantee’s country or elsewhere, including the United States of America. The
Grantee consents to the processing of information relating to the Grantee and the Grantee’s participation in the Plan in
any one or more of the ways referred to above.

 

(signature
page follows)

 

    B-5

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Agreement to be executed on its behalf by its duly authorized officer and the Grantee has also executed this Agreement,
as of the Date of Grant.

 

	 	SG BLOCKS, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title	 

  

The undersigned Grantee
hereby acknowledges receipt of a copy of the Plan. The Grantee represents that he is familiar with the terms and provisions of
the Plan, has had an opportunity to obtain the advice of counsel prior to executing this Agreement, and hereby accepts the Stock
Option on the terms and conditions set forth herein and in the Plan.

 

	 	GRANTEE
	 	 
	 	 
	 	[Name]

 

 

B-6

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