Document:

EX-4.1

 Exhibit 4.1 

RPM INTERNATIONAL INC. 

OFFICERS’ CERTIFICATE AND AUTHENTICATION ORDER 

FOR 5.250% NOTES DUE 2045 

Pursuant to the Indenture dated as of April 8, 2014 (the “Indenture”) between RPM International Inc. (the “Company”)
and Wells Fargo Bank, National Association, as trustee (the “Trustee”), and the resolutions adopted by the Board of Directors of the Company on January 19 and 20, 2015 (the “January Board Resolutions”), this Officers’
Certificate is being delivered to the Trustee to establish the terms of a series of Securities in accordance with Section 2.01 of the Indenture, to establish the form of the Securities of such series in accordance with Section 2.02 of the
Indenture, and to constitute the Company Order to request the authentication and delivery of the Securities of such series pursuant to Section 2.04 of the Indenture, and to comply with the provisions of Section 14.05 of the Indenture. 

Capitalized terms used but not defined herein and defined in the Indenture shall have the respective meanings ascribed to them in the
Indenture. 
 (a) There is hereby established pursuant to Section 2.01 and Section 2.02 of the Indenture a series of Securities
which shall have the terms set forth below and set forth in the form of note attached hereto as Annex A. 
 (1) The series of
Securities hereby being authorized shall bear the title “5.250% Notes due 2045” (referred to herein as the “Notes”). 

(2) The aggregate principal amount of Notes which may be authenticated and delivered under the Indenture pursuant hereto shall
be limited to $250,000,000 (except for Notes authenticated and delivered upon registration of transfer of, or in the exchange for, or in lieu of, other Notes of the series pursuant to Section 2.05, 2.06, 2.07, 3.05, or 10.06 and except for any
Notes which, pursuant to Section 2.04, are deemed never to have been authenticated and delivered). 
 (3) The Notes
shall be issuable in minimum denominations of $2,000 and in integral multiples of $1,000 in excess thereof. 
 (4) The form
of note attached hereto as Annex A sets forth certain of the terms of the Notes required to be set forth or determined in the manner provided in this Officers’ Certificate pursuant to Section 2.01 and Section 2.02 of the Indenture,
and said terms are incorporated herein by reference. 
 (b) It is hereby established pursuant to Section 2.02 of the Indenture that the
Notes shall be substantially in the form attached as Annex A hereto. 
 (c) It is hereby ordered pursuant to Section 2.04 of the
Indenture that the Trustee authenticate, in the manner provided by the Indenture, one Global Security constituting the Notes bearing CUSIP No. 749685 AU7 in the aggregate principal amount of $250,000,000 registered in the name of
Cede & Co., which Note will be duly executed by the proper officers of the Company and delivered to the Trustee as provided in the Indenture, and to deliver said authenticated Note through the facilities of The Depository Trust Company to
or upon the order of Merrill Lynch, Pierce, Fenner & Smith Incorporated on May 29, 2015. 

 (d) The undersigned have read the pertinent sections of the Indenture, including Sections 2.01,
2.02 and 2.04 thereof and the definitions in the Indenture relating thereto, and certain other corporate documents and records. In the opinion of the undersigned, the undersigned have made such examination or investigation as is necessary to enable
the undersigned to express an informed opinion as to whether or not the conditions precedent to (i) the establishment of (a) a series of Securities and (b) the form of such Securities, and (ii) the authentication and delivery of
such series of Securities, contained in the Indenture have been complied with. In the opinion of the undersigned, such conditions have been complied with. 

[Signature page follows] 

 IN WITNESS WHEREOF, we have hereunto signed our names on behalf of the Company. 

Dated: May 29, 2015 
  

			
	RPM INTERNATIONAL INC.
		
	By:		 /s/ Russell L. Gordon

	Name:		Russell L. Gordon
	Title:		Vice President and Chief Financial Officer
		
	By:		 /s/ Edward W. Moore

	Name:		Edward W. Moore
	Title		Senior Vice President, General Counsel and Chief Compliance Officer

 [Signature page to Officers’ Certificate 

and Authentication Order] 

 [ANNEX A — FORM OF NOTE] 

[Face of Note] 
 Unless this
certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuer 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 requested by an authorized representative of DTC (and any payment is made to Cede & Co. or 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. 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF, AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS SECURITY WILL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED
CIRCUMSTANCES. 
  

			
	 CUSIP NO. 749685 AU7

ISIN US 749685AU73
 Common Code No.
		PRINCIPAL AMOUNT: $250,000,000

 REGISTERED NO.      

RPM INTERNATIONAL INC. 

5.250% Notes due 2045 

RPM INTERNATIONAL INC., a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the
“Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of Two Hundred Fifty
Million Dollars ($250,000,000), or such other principal sum as shall be set forth in the Schedule of Exchanges of Interests attached hereto, on June 1, 2045 and to pay interest thereon from May 29, 2015 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for semi-annually on June 1 and December 1 of each year, commencing December 1, 2015, at the rate of 5.250% per annum, until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest next preceding such Interest Payment Date. The Regular Record Date for an Interest Payment Date shall be May 15, for Interest Payment Dates of June 1, and
November 15, for Interest Payment Dates of December 1 (whether or not a Business Day). As used herein, “Business Day” has the meaning ascribed thereto in the Indenture. 

 Any interest not punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

Payment of interest on this Security shall be made in immediately available funds at the office or agency of the Company maintained for that
purpose, which shall initially be at the Corporate Trust Office of the Trustee, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however,
that, at the option of the Company, payment of interest may be paid by check mailed to the Person entitled thereto at such Person’s last address as it appears in the Security Register or by wire transfer to such account as may have been
designated by such Person. Payment of principal of and interest on this Security at Maturity shall be made against presentation of this Security at the office or agency of the Company maintained for that purpose, which shall initially be at the
Corporate Trust Office of the Trustee. For so long as this Security is a Global Security registered in the name of DTC or its nominee, all payments on the Security will be made to DTC or its nominee as the registered holder hereof in accordance with
DTC procedures. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
  

											
	DATED: May 29, 2015				
				
							RPM INTERNATIONAL INC.
					
							By:		  

									Name:		Russell L. Gordon
									Title:		Vice President and Chief Financial Officer
	[SEAL]								
					
							Attest:		  

									Name:		Edward W. Moore
									Title:		Senior Vice President, General Counsel and Chief Compliance Officer
			
	 TRUSTEE’S CERTIFICATE OF
				
	 AUTHENTICATION
				
	 This is one of the Securities of the

series designated therein referred to

in the within-mentioned Indenture.
				
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
						
	 By:
		  
								
			Authorized Signatory				

 [Reverse of Note] 

RPM INTERNATIONAL INC. 

5.250% Notes due 2045 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to
be issued in one or more series under an Indenture dated as of April 8, 2014 between the Company and Wells Fargo Bank, National Association, as trustee, as amended or supplemented from time to time (herein called the
“Indenture”) (in its capacity as trustee, Wells Fargo Bank, National Association, being herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof, such series being limited in initial aggregate principal amount to $250,000,000; provided, however, that the Company
may, without the consent of the Holders of the Securities of this series, issue additional Securities with the same terms as the Securities of this series, and such additional Securities shall be considered part of the same series under the
Indenture as the Securities of this series. 
 The Securities of this series shall not be entitled to any sinking fund. 

Optional Redemption 
 Prior to
December 1, 2044, the Securities of this series are redeemable at the option of the Company at any time in whole or from time to time in part, at a Redemption Price equal to the greater of the following amounts, plus, in each case, accrued and
unpaid interest thereon to, but excluding, the Redemption Date: (i) 100% of the principal amount of the Securities to be redeemed; and (ii) the sum of the present values of the Remaining Scheduled Payments. 

On or after December 1, 2044, the Securities of this series are redeemable at the option of the Company at any time in whole or from time
to time in part, at a Redemption Price equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest thereon to, but excluding the Redemption Date. 

In determining the present values of the Remaining Scheduled Payments, such payments shall be discounted to the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using a discount rate equal to the Treasury Rate plus 35 basis points. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having
an actual or interpolated maturity comparable to the remaining term of the Securities of this series to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of such Securities. 
 “Comparable Treasury Price”
means (A) the arithmetic average of the Reference Treasury Dealer Quotations for such Redemption Date after excluding the highest and lowest Reference Treasury Dealer Quotations, or (B) if the Quotation Agent obtains fewer than four
Reference Treasury Dealer Quotations, the arithmetic average of all Reference Treasury Dealer Quotations for such Redemption Date. 

“Independent Investment Banker” means a Reference Treasury Dealer or its respective successors as may be appointed from time
to time by the Quotation Agent after consultation with the Company; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer (a “primary treasury dealer”), another primary
treasury dealer shall be substituted therefor by the Company. 

 “Quotation Agent” means, for purposes of determining the Redemption Price, such
primary treasury dealer as may be selected by the Company. 
 “Reference Treasury Dealer” means Merrill Lynch, Pierce,
Fenner & Smith Incorporated or its successors and, at the Company’s option, up to three other primary U.S. Government securities dealers in New York City (each, a “primary treasury dealer”), provided, however, that if any of
the foregoing shall cease to be a primary treasury dealer, the Company will substitute therefor another primary treasury dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the
arithmetic average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference
Treasury Dealer by 3:30 p.m. on the third Business Day preceding such Redemption Date. 
 “Remaining Scheduled
Payments” means, with respect to any Security of this series, the remaining scheduled payments of the principal and interest thereon that would be due after the related Redemption Date but for such redemption; provided, however,
that, if such Redemption Date is not an Interest Payment Date with respect to such Security, the amount of the next scheduled interest payment thereon shall be reduced by the amount of interest accrued thereon to such Redemption Date. 

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to
maturity or interpolated yield to maturity of the Comparable Treasury Issue. In determining this rate, the price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) shall be assumed to be equal to the Comparable
Treasury Price for such Redemption Date. 
 A partial redemption of the Securities of this series shall be made in accordance with
Applicable Procedures while the Securities are Global Securities, otherwise may be affected by such method as the Trustee shall deem appropriate and may provide for the selection for redemption of a portion of the principal amount of the Securities
of this series equal to an authorized denomination. 
 Notice of any redemption shall be mailed at least 30 days but not more than 60 days
before the Redemption Date to each Holder of the Securities of this series to be redeemed. 
 Unless the Company defaults in payment of the
Redemption Price, on and after the Redemption Date interest shall cease to accrue on the Securities of this series or portions thereof called for redemption. 

In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof (or through book-entry transfer, for Global Securities). 

Change of Control Offer 
 If a Change of
Control Triggering Event occurs, unless the Company has exercised its option to redeem the Securities of this series, the Company shall be required to make an offer (a “Change of Control Offer”) to each Holder of the Securities of
this series to repurchase all or any part (equal to $2,000 and in integral multiples of $1,000 in excess thereof) of that Holder’s Securities on the terms set forth herein. In a Change of Control Offer, the Company shall be required to offer
payment in cash equal to 101% of the aggregate principal amount of Securities of this series repurchased, plus accrued and unpaid interest, if any, on the Securities of this series repurchased to, but excluding, the date of repurchase (a
“Change of Control Payment”). Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may
constitute the Change of Control, a notice shall be mailed (or to the extent permitted or required by Applicable Procedures or regulations with respect to Global Securities, sent electronically) to Holders of the Securities of this series, with a
copy to the Trustee, describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Securities on the date specified in the notice, which date shall be no earlier than 30 days and
no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”), and describing the instructions determined by the Company, consistent with this covenant, that a Holder of the Securities must follow in
order to 

 
have its Securities purchased. The notice shall, if mailed or sent prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of
Control Triggering Event occurring on or prior to the Change of Control Payment Date. 
 In order to accept the Change of Control Offer, the
Holder must, subject to Applicable Procedures for Global Securities, deliver to the Paying Agent, at least five Business Days prior to the Change of Control Payment Date, this Security together with the form entitled “Election Form” (which
form is annexed hereto) duly completed, or a facsimile transmission or a letter from a member of a national securities exchange, or the National Association of Securities Dealers, Inc. or a commercial bank or trust company in the United States
setting forth: 
  

	 	(i)	the name of the Holder of this Security; 

  

	 	(ii)	the principal amount of this Security; 

  

	 	(iii)	the principal amount of this Security to be repurchased; 

  

	 	(iv)	the certificate number or a description of the tenor and terms of this Security; 

  

	 	(v)	a statement that the Holder is accepting the Change of Control Offer; and 

  

	 	(vi)	a guarantee that this Security, together with the form entitled “Election Form” duly completed, will be received by the Paying Agent at least five Business Days prior to the Change of Control Payment Date.

 Any exercise by a Holder of its election to accept the Change of Control Offer shall be irrevocable. The Change of Control Offer may be
accepted for less than the entire principal amount of this Security, but in that event the principal amount of this Security remaining outstanding after repurchase must be equal to $2,000 and in integral multiples of $1,000 in excess thereof. 

On the Change of Control Payment Date, the Company shall, to the extent lawful: 

 

	 	(i)	accept for payment all Securities of this series or portions of such Securities properly tendered pursuant to the Change of Control Offer; 

 

	 	(ii)	deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities of this series or portions of such Securities properly tendered; and 

 

	 	(iii)	deliver or cause to be delivered to the Trustee the Securities of this series properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities of this series or portions
of such Securities being repurchased. 

 The Company shall not be required to make a Change of Control Offer upon the
occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party purchases all Securities of
this series properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Securities of this series if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the
Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. 
 The Company
shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Securities of this series as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer
provisions of the Securities of this series, the Company shall comply with those securities laws and regulations and shall not be deemed to have breached its obligations under the Change of Control Offer provisions of the Securities of this series
by virtue of any such conflict. 

 For purposes of the Change of Control Offer provisions of the Securities of this series, the
following terms are applicable: 
 “Change of Control” means the occurrence of any of the following: (1) the direct or
indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially all of the assets of the Company and its Subsidiaries, taken as a
whole, to any person, other than the Company or a Subsidiary; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person becomes the beneficial owner (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s outstanding Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged
or changed, measured by voting power rather than number of shares; (3) the Company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company, in any such event pursuant to a
transaction in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares of the
Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person or any direct or indirect parent company of the surviving person
immediately after giving effect to such transaction; (4) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors; or (5) the adoption of a plan relating to the Company’s
liquidation or dissolution. The term “person,” as used in this definition, has the meaning given thereto in Section 13(d)(3) of the Exchange Act. 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event. 

“Continuing Directors” means, as of any date of determination, any member of the Company’s Board of Directors who
(1) was a member of such Board of Directors on the date the Securities of this series were issued or (2) was nominated for election, elected or appointed to such Board of Directors with the approval of a majority of the Continuing
Directors who were members of such Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as
a director, without objection to such nomination). 
 “Fitch” means Fitch Inc., and its successors. 

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s, BBB- (or the
equivalent) by S&P and BBB- (or the equivalent) by Fitch and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Company. 

“Moody’s” means Moody’s Investors Service, Inc., and its successors. 

“Rating Agencies” means (1) each of Moody’s, S&P and Fitch; and (2) if any of Moody’s, S&P or
Fitch ceases to rate the Securities of this series or fails to make a rating of such Securities publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the Company (as certified by a resolution of the Company’s Board of Directors) to act as a replacement agency for Moody’s, S&P or Fitch, or all of them,
as the case may be. 
 “Rating Event” means the credit rating on the Securities of this series is lowered by at least two
of the three Rating Agencies and the Securities of this series are rated below an Investment Grade Rating by at least two of the three Rating Agencies on any day during the period (which period shall be extended so long as the rating of the
Securities of this series is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) commencing 60 days prior to the first public notice of the occurrence of a Change of Control or the Company’s intention
to effect a Change of Control and ending 60 days following consummation of such Change of Control. 
 “S&P” means
Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., and its successors. 

 “Voting Stock” means, with respect to any specified “person” (as that
term is used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 

Events of Default 
 In addition to the
Events of Default set forth in the Indenture, the following shall be considered Events of Default with respect to the Securities of this Series: 

(a) any final judgment or order for the payment of money in excess of the greater of $50,000,000 or 7% of Consolidated Stockholders’
Equity, either individually or in the aggregate (net of any amounts to the extent that they are covered by insurance), shall have been rendered against the Company or any of its Subsidiaries and which shall not have been paid or discharged, and
there shall be any period of 60 consecutive days following the entry of the final judgment or order that causes the aggregate amount for all such final judgments or orders outstanding and not paid or discharged against the Company or any of its
Subsidiaries to exceed the greater of $50,000,000 or 7% of Consolidated Stockholders’ Equity during which a stay of enforcement of such final judgment or order, by reason of a pending appeal or otherwise, shall not be in effect. 

Limitation on Liens 
 The Company
covenants and agrees for the benefit of the Holders that for so long as any Securities of this series are outstanding, the Company will not, and will not permit any of its Subsidiaries to, create, assume, incur or suffer to exist any Lien upon any
Principal Property or upon any shares of Capital Stock or Indebtedness of any Subsidiary owning or leasing any Principal Property, whether owned or leased on the date of the Indenture or thereafter acquired, other than Permitted Liens or as
permitted under “Exempted Liens and Sale-Leaseback Transactions” below, to secure any Indebtedness incurred or guaranteed by the Company or any Subsidiary, without in any such case making effective provision whereby all of the Securities
of this series then outstanding (together with, if the Company so determines, any other Indebtedness or guarantee thereof by the Company ranking equally with such Securities) shall be secured equally and ratably with, or prior to, such Indebtedness
so long as such Indebtedness shall be so secured. 
 “Permitted Liens” means: 

(i) Liens existing on the date of the Indenture or the date the Securities of this series are issued and securing Indebtedness in an aggregate
principal amount not exceeding the greater of $25.0 million or 5% of Consolidated Stockholders’ Equity of the Company; provided that no increase in the amount secured thereby is permitted; 

(ii) Liens on the property or assets of the Company or any other property or assets of the Subsidiaries of the Company given to secure the
payment of the purchase price incurred in connection with the acquisition, lease (including any Capital Lease Obligation) or construction of property (other than accounts receivable or inventory) intended to be used in carrying on of the business of
the Company or the businesses of the Subsidiaries of the Company, including Liens existing on such property at the time of acquisition, lease or construction thereof or improvements thereon, or Liens incurred within 180 days of such acquisition
or the completion of such construction; provided that (i) the Lien shall attach solely to the property acquired, purchased, leased, constructed or improved, (ii) at the time of acquisition or construction of such property, the aggregate
amount remaining unpaid on all Indebtedness secured by Liens on such property, whether or not assumed by the Company or any Subsidiary of the Company, shall not exceed an amount equal to the lesser of the total purchase price or Fair Market Value at
the time of acquisition or construction of such property, and (iii) the aggregate principal amount of all Indebtedness secured by such Liens shall not exceed the lesser of (y) the cost of the acquisition, lease or construction, as the case
may be or (z) the Fair Market Value of such property; 
 (iii) Liens on property or assets of any Person existing at the time such
Person becomes a Subsidiary of the Company or is merged with or into or consolidated with the Company or any Subsidiary of the Company or, at the time of a sale, lease or other disposition of the properties of a Person as an entirety or
substantially as an entirety to the Company or any Subsidiary of the Company, or arising thereafter 

 
pursuant to contractual commitments entered into prior to and not in contemplation of such Person becoming a subsidiary and not in contemplation of any such merger or consolidation or any such
sale, lease or other disposition; provided that such Liens shall not extend to the property or assets of the Company or any other property or assets of the Subsidiaries of the Company; 

(iv) Any extension, renewal or replacement (or successive extensions, renewals or replacements) in whole or in part of any Lien referred to in
the foregoing clauses; provided, however, that the principal amount of Indebtedness secured thereby shall not exceed the principal amount of Indebtedness so secured prior to such extension, renewal or replacement and that such extension, renewal or
replacement Lien shall be limited to all or a part of the assets that secured the Lien so extended, renewed or replaced (plus improvements and construction on such real property); 

(v) Other Liens arising in the ordinary conduct of the business of the Company or the businesses of the Subsidiaries of the Company (including
Liens to secure the performance by the Company or the Subsidiaries of the Company of bids, tenders or trade contracts for sums not yet due and payable) which are not incurred in connection with the borrowing of money or the obtaining of advances or
credit, or that is incidental to the ownership of properties and assets by the Company or the Subsidiaries of the Company in the ordinary conduct of the Company’s business or the businesses of the Subsidiaries of the Company (including
landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens for sums not yet due and payable), or to secure the performance by the Company or the Subsidiaries of the Company of its or their
statutory obligations (including obligations under workers compensation, unemployment insurance and other social security legislation), surety or appeal bonds and other similar liens (including Liens of attorneys on client files); provided in each
case that such Liens do not, in the aggregate, materially detract from the value of the property or assets of the Company or the property or assets of the Subsidiaries of the Company or materially impair the use thereof in the operation of the
business of the Company or the businesses of the Subsidiaries of the Company; 
 (vi) Leases or subleases entered into by the Company or the
Subsidiaries of the Company as either lessors or sublessors, easements, rights-of-way, restrictions and other similar charges or encumbrances (including zoning restrictions), in each case, that is incidental to the ownership of property or assets or
the ordinary conduct of the business of the Company or the businesses of the Subsidiaries of the Company; provided that such Liens do not, in the aggregate, materially detract from the value of such property; 

(vii) Liens for taxes, assessments or other governmental charges which are not yet due and payable as of the date of the Indenture or the date
the Securities of this series are issued; and 
 (viii) Liens on receivables, leases, other financial assets, and any assets related thereto,
incurred in connection with a Permitted Receivables Transaction. 
 “Permitted Receivables Transaction” means any
transaction or series of transactions entered into by the Company or any of its Subsidiaries in order to monetize or otherwise finance a pool (which may be fixed or revolving) of receivables, leases or other financial assets (including, without
limitation, financing contracts) or other transactions evidenced by receivables purchase agreements, including, without limitation, factoring agreements and other similar agreements pursuant to which receivables, leases, other financial assets, and
any assets related thereto, are sold at a discount (in each case whether now existing or arising in the future), and which may include a grant of a security interest in any such receivables, leases, other financial assets (whether now existing or
arising in the future) of the Company or any of its Subsidiaries, and any assets related thereto, including all collateral securing such receivables, leases, or other financial assets, all contracts and all guarantees or other obligations in respect
thereof, proceeds thereof and other assets that are customarily transferred, or in respect of which security interests are customarily granted, in connection with asset securitization transactions involving receivables, leases, or other financial
assets or other transactions evidenced by receivables purchase agreements, including, without limitation, factoring agreements and other similar agreements pursuant to which receivables are sold at a discount. 

 “Principal Property” means, whether owned or leased on the date of the Indenture
or acquired after the date hereof, each manufacturing or processing plant or facility and office facilities of the Company or its Subsidiaries located in the United States. 

Restrictions on Sale-Leaseback Transactions 

Except as permitted under “Exempted Liens and Sale-Leaseback Transactions” below, the Company will not, and it will not permit any of
its Subsidiaries to, engage in the sale or transfer by the Company or any of its Subsidiaries of any Principal Property to a person (other than a Subsidiary of the Company or the Company) and the taking back by the Company or any of its
Subsidiaries, as the case may be, of a lease of such Principal Property, unless: 
 (i) such sale-leaseback transaction involves a lease for
a period, including renewals, of not more than three years; or 
 (ii) the Company or its Subsidiary, within a one-year period after such
sale-leaseback transaction, applies or causes to be applied an amount not less than the net proceeds from such sale-leaseback transaction to the prepayment, repayment, redemption, reduction or retirement (other than pursuant to any mandatory sinking
fund, redemption or prepayment provision) of Funded Indebtedness. 
 “Funded Indebtedness” means Indebtedness having a maturity of
more than 12 months from the date as of which the amount thereof is to be determined or having a maturity of less than 12 months but by its terms being renewable or extendible beyond 12 months from such date at the option of the obligor.

 Exempted Liens and Sale-Leaseback Transactions 

Notwithstanding the foregoing restrictions on Liens and sale-leaseback transactions, and in addition to Permitted Liens otherwise permitted
hereunder, the Company may, and may permit any Subsidiary to, create, assume, incur, or suffer to exist any Lien upon any Principal Property, or upon any shares of Capital Stock or Indebtedness of any of its Subsidiaries owning or leasing any
Principal Property, to secure Indebtedness incurred or guaranteed by the Company or any of its Subsidiaries or effect any sale-leaseback transaction of a Principal Property that is not excepted by “Restrictions on Sale-Leaseback
Transactions” above without equally and ratably securing the Securities; provided that, after giving effect thereto, the aggregate principal amount of outstanding Indebtedness secured by Liens other than Permitted Liens upon Principal Property
and/or upon such shares of Capital Stock or Indebtedness of any Subsidiary owning or leasing any Principal Property, plus the Attributable Indebtedness from sale-leaseback transactions of Principal Property not so excepted, does not exceed 15% of
the Consolidated Stockholders’ Equity as of the date of determination. 
 “Attributable Indebtedness” for a
sale-leaseback transaction means the lesser of (i) the fair value of the property subject to the transaction (as determined by the Company’s Board of Directors), or (ii) the present value (discounted at the interest rate implicit in
the relevant sale and leaseback transaction) of rent for the remaining term of the lease. 
 “Consolidated Stockholders’
Equity” means, at any time, the consolidated stockholders’ equity of the Company and its Subsidiaries calculated on a consolidated basis as of such time. 

 Other Provisions 

If an Event of Default with respect to Securities of this series as set forth herein or in the Indenture shall occur and be continuing, the
principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Security will not have the
right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of
Default with respect to the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect
of such Event of Default as Trustee and offered the Trustee indemnity satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request and shall have failed to institute such proceeding for 60 calendar days after receipt of such notice, request, and offer of indemnity. The foregoing will apply to any suit instituted by the Holder of this Security for
the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 

Upon due presentment for registration of transfer of this Security at the office or agency of the Company in New York, New York, a new
Security or Securities of this series in authorized denominations for an equal aggregate principal amount shall be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations provided therein and to the
limitations described below, without charge except for any tax or other governmental charge imposed in connection therewith. 
 Prior to due
presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 This Security
is exchangeable for definitive Securities in registered form only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Security and a successor depositary is not appointed by the Company
within 90 days after receiving such notice, or if at any time the Depositary ceases to be a clearing agency registered under the Exchange Act and a successor depositary is not appointed by the Company within 90 days after the Company becoming aware
that the Depositary has ceased to be registered as a clearing agency, (ii) the Company, in its sole discretion, determines that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or
(iii) an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered
form, bearing interest at the same rate, having the same date of issuance, redemption provisions, Stated Maturity and other terms and of authorized denominations aggregating a like amount. 

This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor. Except as provided above, owners of beneficial interests in this global Security shall not
be entitled to receive physical delivery of Securities in definitive form and shall not be considered the Holders hereof for any purpose under the Indenture. 

 No reference herein to the Indenture and no provision of this Security or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived
and released. 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the
Indenture unless otherwise defined in this Security. 
 This Security shall be governed by, and construed in accordance with, the laws of
the State of New York, without regard to conflicts of laws principles thereof. 

 ASSIGNMENT FORM 

To assign this Security, fill in the form below: 
  

					
	 (I) or (we) assign and transfer this Security to:
		  
		

  

	
	(Insert assignee’s legal name)
	
	  

	
	(Insert assignee’s soc. sec. or tax I. D. no.)
	
	  

	  

	  

	  

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

  

			
	 and irrevocably appoint
		  

 to transfer this Security on the books of the Company. The agent may substitute another to act for him. 

Date: 
  

			
	Your Signature:		  

  

																			
									(Sign exactly as your name appears on the face of this Security)

 Signature
Guarantee:1                              
   
  
  

	1 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 Option of Holder to Elect Purchase 

If you want to elect to have this Security purchased by the Company pursuant to the Change of Control Offer section of this Security, check the box below:

  
  ̈ 

If you want to elect to have only part of the Security purchased by the Company pursuant to the Change of Control Offer section of this Security, state the
amount you elect to have purchased: 

$                       
      
 Date: 
  

					
	Your Signature:		  
		

  

									
									(Sign exactly as your name appears on the face of this Security)

  

																	
													 	Tax Identification No.:	  		  

 Signature
Guarantee:2*                              
               
  

 

	2 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY 

The following increases or decreases in this Global Security have been made: 
  

									
	 Date of Exchange
	 	 Amount of

Decrease in
 Principal
Amount
 of this Global

Security
	 	 Amount of

Increase in
 Principal
Amount
 of this Global

Security
	  	Principal Amount
of this Global
Security
Following such
Decrease or
Increase	  	Signature of
Authorized
Officer of Trustee
or Securities
CustodianCOMPROMISE AGREEMENT AND RELEASE

 

This Compromise Agreement and Release is entered
into by and between Twinlab Consolidated Holdings, Inc., a Nevada corporation (“Twinlab”) and Capstone Financial Group,
Inc., a Nevada corporation (“Capstone”), in order to amicably compromise and settle a dispute between them for their
mutual advantage.

 

1.Surrender of Series A Warrant.
Capstone hereby surrenders to Twinlab the Series A Warrant dated September 30, 2014 which Twinlab had given in favor of Capstone,
and the Series A Warrant (and all rights and obligations of any party thereunder) are hereby terminated. Capstone’s April
2015 exercises of the Series A Warrant for 657,895 shares of Twinlab common stock and the issuance to Capstone of such 657,895
shares of Twinlab common stock are expressly confirmed and validated, and shall not be affected by this Compromise Agreement and
Release.

2.Common Stock Put Agreement.
The Common Stock Put Agreement by and between Twinlab and Capstone dated September 30, 2014 (and all rights and obligations of
any party thereunder) are hereby terminated.

3.Non-Liability. Neither
Twinlab nor any person related to Twinlab shall have any liability to Capstone in connection with the termination of the Series
A Warrant and/or the Common Stock Put Agreement hereunder, and/or in connection with the amendment pursuant hereto of the Series
B Warrant dated September 30, 2014 which Twinlab had given in favor of Capstone. Neither Capstone nor any person related to Capstone
shall have any liability to Twinlab in connection with the termination of the Series A Warrant and/or the Common Stock Put Agreement
hereunder, and/or in connection with the amendment of the Series B Warrant pursuant hereto.

4.Amendment of Series B Warrant.
In consideration for the termination of the Common Stock Put Agreement, and as partial consideration for entry into this Compromise
Agreement and Release, the parties shall contemporaneously herewith enter into and execute an amendment to the Series B Warrant
in the form set forth on Exhibit A attached hereto. For avoidance of doubt: the Series B Warrant, as so amended, shall continue
in full force and effect notwithstanding any possible interpretation of Section 7 and/or 8 hereof to the contrary.

5.Contingent Call Options.
In consideration for the surrender of the Series A Warrant, and as partial consideration for entry into this Compromise Agreement
and Release, Capstone hereby grants to Twinlab three separate contingent call option rights (“Contingent Call Option 2,”
“Contingent Call Option 3,” and “Contingent Call Option 4”) to acquire from Capstone, at a call option
exercise price of $0.01 per share, a number of shares of outstanding Company Common Stock owned by Capstone (free of all security
interests, liens and adverse claims) as set forth on Exhibit B attached hereto and with the other terms and conditions as set forth
on Exhibit B attached hereto, including the express condition that the respective contingent call option shall in no event be exercisable
to any extent unless its respective applicable “Liquidity Condition” (as set forth on Exhibit B attached hereto) has
been fully satisfied. The parties expressly agree that this Section 5 is an essential element of this Compromise Agreement and
Release. Capstone agrees that to the degree and as of the date that any of Twinlab’s Contingent Call Option rights have been
triggered and arise pursuant to the terms hereof (including without limitation the terms set forth in Exhibit B) that Capstone
shall own a sufficient number of shares of Company Common Stock to be able to satisfy Capstone’s obligations with respect
to each such Contingent Call Option as of the date it arises.

    	-1-

    	 

    

6.Other Agreements and Securities.
The Registration Rights Agreement between Twinlab and Capstone, dated September 30, 2014, shall continue in full force and effect
and shall apply to the Series B Warrant as amended pursuant to this Compromise Agreement and Release (and the shares of Twinlab
Common Stock issuable and issued thereunder). The parties confirm that, except as otherwise expressly set forth herein, this Compromise
Agreement and Release shall have no effect on Capstone’s free and clear title to any and all Twinlab shares owned by Capstone.
In addition, and for avoidance of doubt, the Confidentiality, Non-Disclosure & Non-Circumvention Agreement between Twinlab
Consolidation Corporation and Capstone, dated September 25, 2013, shall continue in full force and effect.

7. Special Releases. Capstone,
for itself and its current, former and future subsidiaries and its and their predecessors, successors, officers, directors, stockholders,
agents, employees and assigns, fully and forever releases and discharges Twinlab and each of its current, former and future subsidiaries,
affiliates, related entities, creditors, stockholders, assigns and successors and each of its and their predecessors, successors,
officers, directors, stockholders, constituent partners, managers, members, agents, employees and assigns, with respect to any
and all claims, liabilities and causes of action, of every nature, kind and description, in law, equity or otherwise, which have
both (a) arisen, occurred or existed at any time before the signing of this Compromise Agreement and Release and (b) arisen,
occurred or existed (i) under the Series A Warrant (or a breach thereof), the Series B Warrant (or a breach thereof) and/or the
Common Stock Put Agreement (or a breach thereof) or (ii) in connection with the inducement of Capstone to enter into the Series
A Warrant, the Series B Warrant, the Common Stock Put Agreement and/or other agreements related thereto.

Twinlab, for itself and its current,
former and future subsidiaries and its and their predecessors, successors, officers, directors, stockholders, agents, employees
and assigns, fully and forever releases and discharges Capstone and each of its current, former and future subsidiaries, affiliates,
related entities, creditors, stockholders, assigns and successors and each of its and their predecessors, successors, officers,
directors, stockholders, constituent partners, managers, members, agents, employees and assigns, with respect to any and all claims,
liabilities and causes of action, of every nature, kind and description, in law, equity or otherwise, which have both (a)
arisen, occurred or existed at any time before the signing of this Compromise Agreement and Release and (b) arisen, occurred or
existed (i) under the Series A Warrant (or a breach thereof), the Series B Warrant (or a breach thereof) and/or the Common Stock
Put Agreement (or a breach thereof) or (ii) in connection with the inducement of Twinlab to enter into the Series A Warrant, the
Series B Warrant, the Common Stock Put Agreement and/or other agreements related thereto.

8.Special Releases Apply To All Claims Within the Scope.
Capstone expressly agrees and understands that the special release given by it pursuant to this Compromise Agreement and Release
applies to all unknown, unsuspected, and unanticipated claims, liabilities, and causes of action which it may have against Twinlab
and which would fall within the express scope of such special release, and such special release shall be fully effective even in
the event that the parties hereafter discover facts in addition to, or different from, those which they/it now know or believe
to be true.

 

Twinlab expressly agrees and understands that
the special release given by it pursuant to this Compromise Agreement and Release applies to all unknown, unsuspected, and unanticipated
claims, liabilities, and causes of action which it may have against Capstone and which would fall within the express scope of such
special release, and such special release shall be fully effective even in the

    	-2-

    	 

    

event that the parties hereafter discover facts in addition to,
or different from, those which they/it now know or believe to be true.

 

9.Noncircumvention. Capstone
is the owner of certain freely tradable shares of Twinlab common stock and has identified, and may in the future identify, to Twinlab
on a confidential basis persons to whom Capstone might sell shares of such freely tradable stock from its holdings. Twinlab hereby
agrees that it shall not, without Capstone’s prior written consent, privately place Twinlab equity securities to any persons
heretofore or hereafter first introduced to Twinlab by Capstone as described above; provided that Twinlab may, without Capstone’s
consent, privately place Twinlab equity securities to such a person at any time after the earlier of (a) the date the entire Series
B Warrant (as amended pursuant hereto) has expired and/or been exercised, or (b) the first anniversary of such particular introduction.
Nothing contained herein shall require Twinlab to provide Capstone or persons identified by Capstone information that is not available
in Twinlab’s public filings, and Capstone represents and warrants that any activities undertaken by Capstone or its representatives
with any such persons or entities with whom it engages shall be done in compliance with all applicable securities laws and regulations.

10.Sophisticated Investor. Twinlab
has informed Capstone that Twinlab is in possession of confidential or material, non-public information (“Excluded Information”)
related to Twinlab, including its subsidiaries, and/or Twinlab’s common stock which, if publicly disclosed, could affect
the trading price of Twinlab’s common stock. Excluded Information has not been disclosed to Capstone, and Capstone accepts
the risk that the Excluded Information will not be known to Capstone prior to the consummation of this Compromise Agreement and
Release or the amendment to the Series B Warrant pursuant hereto and of the impact of the Excluded Information on the value of
Twinlab’s common stock. Notwithstanding any possession of Excluded Information by Twinlab and the absence of disclosure thereof
to Capstone, Capstone desires to enter into this Comprise Agreement and Release for its own business purposes and agrees that Twinlab
shall not have any liability to Capstone, and Capstone irrevocably waives any and all rights, claims or causes of action, whether
known or unknown and whether currently existing or hereafter arising, against Twinlab and each of its current, former and future
subsidiaries, affiliates, related entities, creditors, stockholders, assigns and successors and each of its and their predecessors,
successors, officers, directors, stockholders, constituent partners, managers, members, agents, employees and assign, with respect
to the existence, possession, or non-disclosure of any Excluded Information, whether arising directly, derivatively or indirectly,
primarily or secondarily, by contract or operation of law or otherwise. Capstone represents that it is a sophisticated investor,
has conducted an independent evaluation of Twinlab and its securities to the extent Capstone deems necessary to make an informed
investment decision with respect to this Compromise Agreement and Release and the amendment to the Series B Warrant made pursuant
hereto and has not relied upon Twinlab for this evaluation, except to the extent of Twinlab’s public filings.

 

11.Facilitation. Each party
hereto agrees to execute and perform such other documents and acts as are reasonably required in order to facilitate the terms
of this Compromise Agreement and Release, and the intent thereof, and to cooperate in good faith in order to effectuate the provisions
of this Compromise Agreement and Release.

12.Entire Agreement. This
Compromise Agreement and Release contains the entire understanding and agreement between the parties hereto with respect to the
matters referred to herein and, in conjunction with the Amendment No. 1 to Series B Warrant executed by the parties pursuant

    	-3-

    	 

    

hereto, supersedes any and all prior and contemporaneous
commitments, undertakings and agreements, whether written or oral, with respect to the subject matter hereof. The parties further
acknowledge and agree that parol evidence shall not be required to interpret the intent of the parties. No other representations,
warranties, covenants, undertakings, commitments, promises or other prior or contemporary agreements, whether oral or written,
respecting such matters, which are not specifically incorporated herein, shall be deemed in any way to exist or bind either of
the parties. The parties acknowledge that each party has not relied, in deciding whether to enter into this Compromise Agreement
and Release on this Compromise Agreement and Release’s expressly stated terms and conditions, on any representations, warranties,
covenants, undertakings, commitments, promises or agreements, which are not expressly set forth within this Compromise Agreement
and Release.

 

13.Waiver, Amendment, and Modification
of Compromise Agreement and Release. The parties agree that no waiver, amendment, or modification of any of the terms and/or
conditions of this Compromise Agreement and Release shall be effective unless in writing and signed by both parties. No waiver
of any term, condition or default of any term of this Compromise Agreement and Release shall be construed as a waiver of any other
term, condition or default.

 

14.Attorneys’ Fees and Costs.
Each party shall be responsible for its own legal fees and costs in connection with the negotiation, preparation and entering into
of this Compromise Agreement and Release.

 

15.New York Law. This Compromise
Agreement and Release and its terms shall be governed by and construed under New York, without regard to conflict-of-law principles.

 

16.Careful Consideration; No Coercion.
Each party hereby agrees that it has read this Compromise Agreement and Release carefully, and understands the import and substance
of each and all of the terms set forth in this Compromise Agreement and Release. Each of Capstone and Twinlab understands and agrees
that if any of the facts or matters upon which it now relies in making this Compromise Agreement and Release hereafter prove to
be otherwise, this Compromise Agreement and Release will nonetheless remain in full force and effect. Each of Capstone and Twinlab
is entering this Compromise Agreement and Release voluntarily, without any coercion, and based upon its own judgment.

 

17.Effect of Compromise.
The parties each acknowledge and agree (a) that the terms specified in this Compromise Agreement and Release are a full and
complete compromise of matters involving disputed issues of law and fact; (b) that neither any party’s agreement to these
terms nor any party’s statement made during the negotiations for this Compromise Agreement and Release shall be considered,
nor shall they be, admissions by any party hereto; and (c) that no past or present wrongdoing shall, by virtue of the execution
and delivery hereof, be implied or claimed on the part of the parties to this Compromise Agreement and Release.

 

18.No Admissions by Parties.
This Compromise Agreement and Release shall not in any way be construed as an admission by either party of any wrongdoing, or of
any liability, or of any breach or violation of any contract or any law, and each party specifically disclaims any wrongdoing and
liability whatsoever.

19.No Presumption from Drafting.
Both parties have cooperated in the drafting and preparation of this Compromise Agreement and Release. No presumption for or against
either party

    	-4-

    	 

    

arising out of drafting all or any part of this Compromise
Agreement and Release will be applied in any action or proceeding involving this Compromise Agreement and Release. Accordingly,
the parties hereby waive the benefit of any federal, state or local law or principle, providing that in cases of uncertainty, language
of a contract should be interpreted against the party who caused the uncertainty to exist. This Compromise Agreement and Release
is the product of a freely-negotiated, bargained-for exchange of valuable consideration.

20.No Event of Default. The
parties acknowledge and confirm that Twinlab never delivered to Capstone a Put Notice (as defined in the Common Stock Put Agreement)
and that there has never been an Event of Default (as defined in the Common Stock Put Agreement).

21.Severability.This Compromise
Agreement and Release is severable. If any portion(s) of this Compromise Agreement and Release is found to be unenforceable, the
portion(s) shall be construed in such a manner as will to the maximum extent possible enable such portion(s) to be enforceable,
the remaining portions of this Compromise Agreement and Release shall be enforced to the maximum extent possible, and the unenforceable
portion will not affect the enforceability of the remaining provisions.

22.Authorization. Each party
represents and warrants to the other party that its execution and delivery of this Compromise Agreement and Release have been duly
authorized by its Board of Directors and do not violate any law or any agreement between it and any third party. Each individual
signing this Compromise Agreement and Release on behalf of a party represents and warrants in his individual capacity to the other
party that his execution and delivery of this Compromise Agreement and Release on behalf of such first party has been duly authorized
by such first party’s Board of Directors.

IN WITNESS WHEREOF, the parties hereto
have executed and delivered this Compromise Agreement and Release.

	Dated: May 28, 2015	 	 	TWINLAB CONSOLIDATED HOLDINGS, INC.
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	By:  /s/ Thomas Tolworthy                        
	 	 	 	Thomas Tolworthy, President & CEO	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Dated: May 28, 2015	 	 	CAPSTONE FINANCIAL GROUP, INC.
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	By:  /s/ Darin Pastor                                 
	 	 	 	Darin Pastor, CEO	 	 	 

 

    	-5-

    	 

    

 

EXHIBIT A

 

AMENDMENT NO. 1 TO SERIES
B WARRANT

 

This Amendment No. 1 to Series B Warrant (“Amendment
No. 1”) is made and entered into as of May 28, 2015 (the “Effective Date”) by and between Twinlab
Consolidated Holdings, Inc. (“TCH” or the “Company”), a Nevada corporation, and Capstone
Financial Group, Inc., a Nevada corporation (“Capstone” or “Registered Owner”).

 

WHEREAS, TCH and Capstone are parties
to that certain Series B Warrant, Warrant Number: B-CAP-001, dated as of September 30, 2014 (the “Series B Warrant”);

 

WHEREAS, TCH and Capstone wish to modify
the terms of the Series B Warrant as set forth below;

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties hereto agree as follows:

 

		1.	The number of shares of Common Stock exercisable under the Series B Warrant is amended to be
18,000,000 (i.e., Capstone is immediately surrendering 4,368,421 of the original 22,368,421 warrants).

 

		2.	The last sentence of Section 5 of the original Series B Warrant is deleted.

 

		3.	Section 19 of the original Series B Warrant is deleted ab initio.

 

		4.	The address for notice to the Registered Owner as set forth in Paragraph 21 of the original
Series B Warrant is changed to: 

 

	“If to the Registered Owner:	
        Capstone Financial Group, Inc.

        8600 Transit Road

        East Amherst, NY 14051

        E-mail: dpastor@capstonefg.com

        Attention: Darin R. Pastor

         

	with a copy to (which shall not constitute notice to the Registered Owner):	
        Stradling Yocca Carlson & Rauth, P.C.

        4365 Executive Drive, Suite 1500

        San Diego, CA 92121

        E-mail:htrubitt@sycr.com

        Attention: Hayden Trubitt”

         

 

		5.	The Series B Warrant shall, for the purpose of determining the expiration dates of the Registered
Owner’s rights to exercise the Series B Warrant (and for the purpose of Exhibit B of that certain Compromise Agreement and
Release between the parties of equal date herewith), be considered as if it were divided into four tranches, as follows:

    	-6-

    	 

    

 

		a.	“Tranche 1”: the “first” segment consisting of 2,000,000 shares exercisable under the Series B Warrant
as hereby amended.

		b.	“Tranche 2”: the “second” segment consisting of 4,000,000 shares exercisable under the Series B Warrant
as hereby amended (i.e., available warrant shares no. 2,000,001 through 6,000,000).

		c.	“Tranche 3”: the “third” segment consisting of 6,000,000 shares exercisable under the Series B Warrant
as hereby amended (i.e., available warrant shares no. 6,000,001 through 12,000,000).

		d.	“Tranche 4”: the “fourth” segment consisting of 6,000,000 shares exercisable under the Series B Warrant
as hereby amended (i.e., available warrant shares no. 12,000,001 through 18,000,000).

 

		6.	The expiration dates for Registered Owner’s rights to exercise each Tranche referenced
in Section 5 above, shall be as follows:

 

		a.	The “Tranche 1” warrant shares shall in no event be exercisable after 5:00 p.m.,
New York Time, November 30, 2015.

 

		b.	The “Tranche 2” warrant shares shall in no event be exercisable after 5:00 p.m.,
New York Time, March 31, 2016.

 

		c.	The “Tranche 3” warrant shares shall in no event be exercisable after 5:00 p.m.,
New York Time, July 31, 2016.

 

		d.	The “Tranche 4” warrant shares shall in no event be exercisable after 5:00 p.m.,
New York Time, November 30, 2016.

 

		7.	Except as expressly modified by this Amendment No. 1, all terms and conditions of the Series
B Warrant shall remain in full force and effect.

 

		8.	This Amendment No. 1 shall be governed by and construed in accordance with the internal laws
of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New
York or any other jurisdiction).

 

		9.	The share figures expressed in this Amendment No. 1 shall be proportionately adjusted if the
Company, by stock split, stock dividend, reverse split, reclassification of shares, or otherwise, changes as a whole the outstanding
Common Stock into a different number or class of shares, such adjustment to be effective immediately before the date upon which
the change becomes effective.

 

		10.	This Amendment No. 1 may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall be deemed to be one and the same instrument. A signed copy of this Amendment No. 1 delivered by
facsimile, email or other means of

    	-7-

    	 

    

electronic transmission shall be deemed to have the
same legal effect as delivery of an original signed copy of this Amendment No. 1.

 

IN WITNESS WHEREOF, the parties hereto
have caused this Amendment No. 1 to be duly executed and delivered as of the day and year first written above.

 

TWINLAB CONSOLIDATED HOLDINGS, INC.

 

 

 

By: ______________________________________

Name: Thomas A. Tolworthy

Title: President and Chief Executive Officer

 

 

CAPSTONE FINANCIAL GROUP, INC.

 

 

 

By: ______________________________________

Name: Darin R. Pastor

Title: Chief Executive Officer

 

 

    	-8-

    	 

    

 

EXHIBIT B

CONTINGENT CALL OPTION
TERMS

 

 

	 	Contingent Call Option 2	Contingent Call Option 3	Contingent Call Option 4
	Number of Shares	25% of the difference, if any and if positive, of 4,000,000 minus the number of Series B Warrant shares within “Tranche 2” which were exercised (including payment therefor) by Capstone before “Tranche 2” ceases to be exercisable under the terms of the Series B Warrant, as amended [i.e., the maximum possible number of shares subject to Contingent Call Option 2 is 1,000,000]	25% of the difference, if any and if positive, of 6,000,000 minus the number of Series B Warrant shares within “Tranche 3” which were exercised (including payment therefor) by Capstone before “Tranche 3” ceases to be exercisable under the terms of the Series B Warrant, as amended [i.e., the maximum possible number of shares subject to Contingent Call Option 3 is 1,500,000]	25% of the difference, if any and if positive, of 6,000,000  minus the number of Series B Warrant shares within “Tranche 4” which were exercised (including payment therefor) by Capstone before “Tranche 4” ceases to be exercisable under the terms of the Series B Warrant, as amended [i.e., the maximum possible number of shares subject to Contingent Call Option 4 is 1,500,000]
	Date First Exercisable (If Ever)	April 1, 2016	August 1, 2016	December 1, 2016
	Expiration Date	May 1, 2016	August 31, 2016	December 31, 2016

    	-9-

    	 

    

 

	Liquidity Condition	(a) As of January 31, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 7 months period ending on such date shall not be less than 1.15x, and (b) as of February 29, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 8 months period ending on such date shall not be less than 1.15x; and (c) as of March 31, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 9 months period ending on such date shall not be less than 1.15x	(a) As of April 30, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 10 months period ending on such date shall not be less than 1.15x, and (b) as of May 31, 2016, Twinlab’s Fixed Charge Coverage Ratio for the 11 months period ending on such date shall not be less than 1.15x,  and (c) as of the end of each month beginning June 2016 and ending July 2016, Twinlab’s Fixed Charge Coverage Ratio for the period of trailing 12 months ending on such month-end shall not be less than 1.15x	As of the end of each month beginning August 2016 and ending November 2016, Twinlab’s Fixed Charge Coverage Ratio for the period of trailing 12 months ending on such month-end shall not be less than 1.15x

It is intended that for the purposes
of the Liquidity Condition specifications set forth herein, the terms “Fixed Charge Coverage Ratio” and “Fixed
Charges” shall have the same meaning as in the Credit and Security Agreement dated January 22, 2015 (the “Credit Agreement”)
filed as Exhibit 10.23 to Twinlab’s January 28, 2015 Current Report on Form 8-K (and without regard to any later amendments
or waivers of or forbearances under such Credit Agreement). The definitions of Fixed Charge Coverage Ration and Fixed Charges as
currently set forth in the Credit Agreement are:

Fixed Charge Coverage Ratio = for any
period, the ratio of (i) adjusted EBITDA for such period, plus (a) cash received during such period for Equity Interests so long
as such cash is used as working capital and such cash is not received more than two times in any trailing-twelve-months period,
minus (b) Non-Financed Capital Expenditures made (to the extent not already incurred in a prior period) or incurred during such
period, minus (c) cash taxes paid during such period, to the extent greater than zero, and minus (d) Permitted Distributions under
clause (d) of the definition of that term, to (ii) Fixed Charges for such period

Fixed Charges = with respect to any
fiscal period and with respect to the Borrowers and their Subsidiaries determined on a consolidated basis in accordance with GAAP,
the sum, without duplication, of (a) cash Interest Expense paid during such period (other than interest paid-in-kind, amortization
of financing fees, and other non-cash Interest Expense), (b) principal payments paid in cash in respect of Debt paid during such
period, including cash payments with respect to Capital Leases, but excluding principal payments made on the revolving loans, and
(c) all Permitted Distributions (other than Permitted Distributions under clause (d) of the definition of that term) and other
distributions paid in cash during such period

 

If the Company, by stock split, stock
dividend, reverse split, reclassification of shares, or otherwise, changes as a whole the outstanding Common Stock into a different
number or class of shares, then: (1) the number and/or class of shares as so changed shall, for the purposes of the Contingent
Call Options, replace the shares outstanding immediately before the change; and (2) the purchase price in effect, and the number
of shares purchasable under the Contingent Call Options, immediately before the date upon which the change becomes effective, shall
be proportionately adjusted (the price to the nearest cent).

    	-10-

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