Document:

EX-4.1

 Exhibit 4.1 

EXECUTION VERSION 
  

 
 CONSTELLATION BRANDS, INC., 

as Issuer 
 ALCOFI INC.

 CONSTELLATION BEERS LTD. 

CONSTELLATION BRANDS BEACH HOLDINGS, INC. 

CONSTELLATION BRANDS SMO, LLC 

CONSTELLATION BRANDS U.S. OPERATIONS, INC. 

CONSTELLATION LEASING, LLC 

CONSTELLATION MARKETING SERVICES, INC. 

CONSTELLATION SERVICES LLC 

CONSTELLATION TRADING COMPANY, INC. 

CROWN IMPORTS LLC 
 FRANCISCAN
VINEYARDS, INC. 
 HOME BREW MART, INC. 

ROBERT MONDAVI INVESTMENTS 
 THE
HOGUE CELLARS, LTD., 
 as Guarantors 

and 
 MANUFACTURERS AND TRADERS
TRUST COMPANY, 
 as Trustee 
  

 
 Supplemental
Indenture No. 11 
 Dated as of December 6, 2016 
  

 
 3.700% Senior
Notes due 2026 
  
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
		
	 ARTICLE ONE RELATION TO INDENTURE; DEFINITIONS
	  	 	1	  
			
	 SECTION 1.1.
	 	 Relation to Indenture
	  	 	1	  
	 SECTION 1.2.
	 	 Definitions
	  	 	1	  
		
	 ARTICLE TWO THE SERIES OF DEBT SECURITIES
	  	 	10	  
			
	 SECTION 2.1.
	 	 Title of the Debt Securities
	  	 	10	  
	 SECTION 2.2.
	 	 Limitation on Aggregate Principal Amount
	  	 	10	  
	 SECTION 2.3.
	 	 Interest and Interest Rates; Maturity Date of Notes
	  	 	10	  
	 SECTION 2.4.
	 	 Optional Redemption
	  	 	11	  
	 SECTION 2.5.
	 	 Sinking Fund
	  	 	11	  
	 SECTION 2.6.
	 	 Method of Payment
	  	 	11	  
	 SECTION 2.7.
	 	 Currency
	  	 	12	  
	 SECTION 2.8.
	 	 Registered Securities; Global Form
	  	 	12	  
	 SECTION 2.9.
	 	 Form of Notes
	  	 	12	  
		
	 ARTICLE THREE COVENANTS
	  	 	12	  
			
	 SECTION 3.1.
	 	 Limitation on Liens
	  	 	12	  
	 SECTION 3.2.
	 	 Purchase of Notes upon a Change of Control
	  	 	15	  
	 SECTION 3.3.
	 	 Limitation on Sale and Leaseback Transactions
	  	 	18	  
	 SECTION 3.4.
	 	 Additional Guarantees
	  	 	18	  
	 SECTION 3.5.
	 	 Waiver of Certain Covenants
	  	 	18	  
		
	 ARTICLE FOUR DEFEASANCE
	  	 	19	  
			
	 SECTION 4.1.
	 	 Legal Defeasance
	  	 	19	  
	 SECTION 4.2.
	 	 Defeasance of Certain Obligations
	  	 	20	  
	 SECTION 4.3.
	 	 Application of Trust Money
	  	 	21	  
	 SECTION 4.4.
	 	 Repayment to Company
	  	 	21	  
	 SECTION 4.5.
	 	 Reinstatement
	  	 	22	  
		
	 ARTICLE FIVE REMEDIES
	  	 	22	  
			
	 SECTION 5.1.
	 	 Events of Default
	  	 	22	  
	 SECTION 5.2.
	 	 Acceleration of Maturity; Rescission and Annulment
	  	 	24	  
		
	 ARTICLE SIX MISCELLANEOUS PROVISIONS
	  	 	24	  
			
	 SECTION 6.1.
	 	 Ratification of Indenture
	  	 	24	  
	 SECTION 6.2.
	 	 Governing Law
	  	 	25	  
	 SECTION 6.3.
	 	 Counterparts
	  	 	25	  

  
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	 	 	 	  	Page	 
		
	 ARTICLE SEVEN GUARANTEES
	  	 	25	  
		
	 ARTICLE EIGHT SUPPLEMENTAL INDENTURES
	  	 	25	  
			
	 SECTION 8.1.
	 	 Supplemental Indentures and Agreements Without Consent of Holders
	  	 	25	  
	 SECTION 8.2.
	 	 Supplemental Indentures and Agreements with Consent of Holders
	  	 	27	  

  

			
	 Exhibit A
	 	 Form of Note

	 Exhibit B
	 	 Form of Guarantee

  
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 SUPPLEMENTAL INDENTURE NO. 11, dated as of December 6, 2016 (this “Supplemental
Indenture”), between CONSTELLATION BRANDS, INC., a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company”), the guarantors named herein and from time to time parties
hereto, and MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking corporation, as Trustee (herein called the “Trustee”). 

RECITALS OF THE COMPANY 

WHEREAS, the Company has heretofore delivered to the Trustee an Indenture dated as of April 17, 2012 (the “Initial Indenture”
and, together with Supplemental Indenture No. 1, dated as of April 17, 2012, Supplemental Indenture No. 2, dated as of August 14, 2012, Supplemental Indenture No. 3, dated as of May 14, 2013, Supplemental Indenture No. 4, dated as of May 14,
2013, Supplemental Indenture No. 5, dated as of June 7, 2013, Supplemental Indenture No. 6, dated as of May 28, 2014, Supplemental Indenture No. 7, dated as of November 3, 2014, Supplemental Indenture No. 8, dated as of November 3, 2014,
Supplemental Indenture No. 9, dated as of December 4, 2015, Supplemental Indenture No. 10, dated as of January 15, 2016 and this Supplemental Indenture, the “Indenture”), providing for the issuance from time to time of Debt
Securities of the Company. 
 WHEREAS, Sections 2.1 and 2.2 of the Initial Indenture provide for various matters with respect to any series
of Debt Securities issued under the Initial Indenture to be established in an indenture supplemental to the Initial Indenture. 
 WHEREAS,
Section 12.1(e) of the Initial Indenture provides for the Company and the Trustee to enter into an indenture supplemental to the Initial Indenture to establish the form or terms of Debt Securities of any series as provided by Sections 2.1 and 2.2 of
the Initial Indenture. 
 WHEREAS, all the conditions and requirements necessary to make this Supplemental Indenture, when duly executed and
delivered, a valid and binding agreement in accordance with its terms and for the purposes herein expressed, have been performed and fulfilled. 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchase of the series of Debt Securities provided for herein by the Holders thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows: 
 ARTICLE ONE 

RELATION TO INDENTURE; DEFINITIONS 

SECTION 1.1. Relation to Indenture. 

This Supplemental Indenture constitutes an integral part of the Indenture. 

SECTION 1.2. Definitions. 

 For all purposes of this Supplemental Indenture, except as otherwise expressly provided for or
unless the context otherwise requires: 
 (1) Capitalized terms used but not defined herein shall have the respective
meanings assigned to them in the Initial Indenture; 
 (2) All references herein to Articles and Sections, unless otherwise
specified, refer to the corresponding Articles and Sections of this Supplemental Indenture; and 
 (3) To the extent terms
defined herein differ from the Initial Indenture the terms defined herein will govern. 
 “Bankruptcy Law” means Title 11,
United States Bankruptcy Code of 1978, as amended, or any similar United States federal or state law relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or relief of debtors or any amendment to, succession to or
change in any such law. 
 “Capital Lease Obligation” means any obligations of the Company and its Subsidiaries on a
Consolidated basis under any capital lease of real or personal property which, in accordance with GAAP, has been recorded as a capitalized lease obligation. 

“Capital Markets Debt” means any debt securities or debt financing issued pursuant to an indenture, notes purchase agreement
or similar financing arrangement (but excluding any credit agreement) whether offered pursuant to a registration statement under the Securities Act or under an exemption from the registration requirements of the Securities Act. 

“Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents
(however designated, whether voting or non-voting) in the equity of such Person, including, without limitation, all common stock and preferred stock. 

“Change of Control” means the occurrence of any of the following events: (i) any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than Permitted Holders, is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person shall be deemed
to have beneficial ownership of all shares that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 35% of the voting power of the total
outstanding Voting Stock of the Company voting as one class, provided that the Permitted Holders “beneficially own” (as so defined) a percentage of Voting Stock having a lesser percentage of the voting power than such other Person
and do not have the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the Board of Directors of the Company; (ii) during any period of two consecutive years, individuals who at the beginning of
such period constituted the Board of Directors of the Company (together with any new directors whose election to such Board or whose nomination for election by the shareholders of the Company was approved by a vote of 66 2/3% of the directors
then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of such Board of Directors then in office; (iii)
the Company consolidates with or merges with or into any Person or conveys, transfers or leases all or substantially all of its assets to any Person, or any 

  
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corporation consolidates with or merges into or with the Company, in any such event pursuant to a transaction in which the outstanding Voting Stock of the Company is changed into or exchanged for
cash, securities or other property, other than any such transaction where the Company’s outstanding Voting Stock is not changed or exchanged at all (except to the extent necessary to reflect a change in the jurisdiction of incorporation of the
Company) or where (A) the outstanding Voting Stock of the Company is changed into or exchanged for (x) Voting Stock of the surviving corporation or (y) cash, securities and other property (other than Capital Stock of the surviving corporation) and
(B) no “person” or “group” other than Permitted Holders owns immediately after such transaction, directly or indirectly, more than the greater of (1) 35% of the voting power of the total outstanding Voting Stock of the surviving
corporation voting as one class and (2) the percentage of such voting power of the surviving corporation held, directly or indirectly, by Permitted Holders immediately after such transaction; or (iv) the Company is liquidated or dissolved or adopts
a plan of liquidation or dissolution other than in a transaction which complies with the provisions of Article Ten of the Initial Indenture. 

“Change of Control Offer” shall have the meaning set forth in Section 3.2(a). 

“Change of Control Purchase Date” shall have the meaning set forth in Section 3.2(a). 

“Change of Control Purchase Notice” shall have the meaning set forth in Section 3.2(b). 

“Change of Control Purchase Price” shall have the meaning set forth in Section 3.2(a). 

“Change of Control Triggering Event” means, (1) the ratings of the Notes are downgraded by at least two of the Ratings
Agencies during the 60-day period (the “Trigger Period”) commencing on the earlier of (i) the occurrence of a Change of Control or (ii) the first public announcement of the occurrence of a Change of Control or the Company’s intention
to effect a Change of Control (which Trigger Period will be extended so long as the ratings of the Notes are under publicly announced consideration for possible downgrade by any of the Ratings Agencies) and (2) the Notes are rated below an
Investment Grade Rating by at least two of the Ratings Agencies on any date during the Trigger Period; provided that if the Notes are not rated by three Ratings Agencies during any Trigger Period, the Notes will be deemed to have been downgraded to
below an Investment Grade Rating by each Ratings Agency that does not provide a rating of the Notes during the Trigger Period. Notwithstanding the foregoing, a ratings decline by a Rating Agency will not be deemed to have occurred in respect of a
particular Change of Control if such Rating Agency making the reduction in rating to which this definition would otherwise apply does not publicly announce or confirm or inform the Trustee in writing at the Company’s or the Trustee’s
request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, such Change of Control (whether or not the applicable Change of Control has occurred at the time
of such decline). 
 “Commission” means the Securities and Exchange Commission, as from time to time constituted, created
under the Exchange Act, or if at any time after the execution of this Supplemental Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such
time. 

  
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 “Company” means Constellation Brands, Inc., a corporation incorporated under the
laws of Delaware, until a successor Person shall have become such pursuant to Article Ten of the Initial Indenture, and thereafter “Company” shall mean such successor Person. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having
a maturity comparable to the remaining term until September 6, 2026. 
 “Comparable Treasury Price” means (1) the average
of four Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer
Quotations, the average of all such quotations. 
 “Consolidated Fixed Charge Coverage Ratio” of the Company means, for any
period, the ratio of (a) the sum of Consolidated Net Income (Loss), Consolidated Interest Expense, Consolidated Income Tax Expense and Consolidated Non-cash Charges deducted in computing Consolidated Net Income (Loss) in each case, for such period,
of the Company and its Subsidiaries on a Consolidated basis, all determined in accordance with GAAP and on a pro forma basis for any acquisition or disposition of a Subsidiary or line of business following the first day of such period and on or
prior to the date of determination as if all such acquisitions and dispositions had occurred on the first day of such period to (b) the sum of Consolidated Interest Expense for such period and cash dividends paid on any of the Company’s
preferred stock and that of its Subsidiaries during such period; provided that (i) in making such computation, the Consolidated Interest Expense attributable to interest on any Funded Debt shall be computed on a pro forma basis for any
incurrence or repayment of Funded Debt (other than Funded Debt under a revolving credit facility) following the first day of the applicable period and on or prior to the date of determination as if such incurrence or repayment had occurred on the
first day of such period and Funded Debt, (A) bearing a floating interest rate, shall be computed as if the rate in effect on the date of computation had been the applicable rate for the entire period and (B) which was not outstanding during the
period for which the computation is being made but which bears, at the option of the Company, a fixed or floating rate of interest, shall be computed by applying at the Company’s option, either the fixed or floating rate and (ii) in making
such computation, the Consolidated Interest Expense of the Company attributable to interest on any Funded Debt under a revolving credit facility computed on a pro forma basis shall be computed based upon the average daily balance of such Funded Debt
during the applicable period. 
 “Consolidated Income Tax Expense” means for any period, as applied to the Company, the
provision for federal, state, local and foreign income taxes of the Company and its Subsidiaries for such period as determined in accordance with GAAP on a Consolidated basis. 

“Consolidated Interest Expense” of the Company means, without duplication, for any period, the sum of (a) the interest
expense of the Company and its Subsidiaries for such period, on a Consolidated basis, including, without limitation, (i) amortization of debt discount, (ii) the net cost under interest rate contracts (including amortization of discounts), (iii) the
interest 

  
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portion of any deferred payment obligation and (iv) accrued interest, plus (b) (i) the interest component of the Capital Lease Obligations paid, accrued and/or scheduled to be paid or accrued by
the Company and its Subsidiaries during such period and (ii) all capitalized interest of the Company and its Subsidiaries, in each case as determined in accordance with GAAP on a Consolidated basis. Whenever pro forma effect is to be given to
an acquisition or disposition of assets for the purpose of calculating the Consolidated Fixed Charge Coverage Ratio, the amount of Consolidated Interest Expense associated with any Funded Debt incurred in connection with such acquisition or
disposition of assets shall be calculated on a pro forma basis in accordance with Regulation S-X under the Securities Act, as in effect on the date of such calculation. 

“Consolidated Net Income (Loss)” of the Company means, for any period, the Consolidated net income (or loss) of the Company
and its Subsidiaries for such period as determined in accordance with GAAP on a Consolidated basis, adjusted, to the extent included in calculating such net income (loss), by excluding, without duplication: (i) all extraordinary gains or losses
(less all fees and expenses relating thereto); (ii) the portion of net income (or loss) of the Company and its Subsidiaries allocable to minority interests in unconsolidated Persons to the extent that cash dividends or distributions have not
actually been received by the Company or one of its Subsidiaries; (iii) any gain or loss, net of taxes, realized upon the termination of any employee pension benefit plan; (iv) net gains (but not losses) (less all fees and expenses relating thereto)
in respect of dispositions of assets other than in the ordinary course of business; or (v) the net income of any Subsidiary to the extent that the declaration of dividends or similar distributions by that Subsidiary of that income is not at the time
permitted, directly or indirectly, by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulations applicable to that Subsidiary or its stockholders. Whenever pro forma
effect is to be given to an acquisition or disposition of assets for the purpose of calculating the Consolidated Fixed Charge Coverage Ratio, the amount of income or earnings related to such assets shall be calculated on a pro forma basis in
accordance with Regulation S-X under the Securities Act, as in effect on the date of such calculation. 
 “Consolidated Net Tangible
Assets” means the aggregate amount of assets (less applicable reserves and other properly deductible items) after deducting therefrom (i) all current liabilities, excluding the current portion of any Funded Debt and any other current
liabilities constituting Funded Debt because such Funded Debt is extendible or renewable, and (ii) all goodwill, trade names, trademarks, patents, unamortized debt discount and expense and other similar intangibles, all as set forth on the books and
records of the Company and its Consolidated Subsidiaries and computed in accordance with GAAP. 
 “Consolidated Non-cash
Charges” of the Company means, for any period, the aggregate depreciation, amortization and other non-cash charges of the Company and its Subsidiaries for such period, as determined in accordance with GAAP on a Consolidated basis (excluding
any non-cash charge which requires an accrual or reserve for cash charges for any future period). 
 “Consolidation” means,
with respect to any Person, the consolidation of the accounts of such Person and each of its Subsidiaries if and to the extent the accounts of such Person and each of its Subsidiaries would normally be consolidated with those of such Person, all in
accordance with GAAP. The term “Consolidated” shall have a similar meaning. 

  
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 “Default” means any event which is, or after notice or passage of time or both
would be, an Event of Default. 
 “Depositary” or “DTC” has the meaning set forth in Section 2.6.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Event of Default” has the meaning set forth in Section 5.1. 

“Fitch” means Fitch Ratings, Inc., and its successors. 

“Funded Debt” means all indebtedness for the repayment of money borrowed, whether or not evidenced by a bond, debenture, note
or similar instrument or agreement, having a final maturity of more than 12 months after the date of its creation or having a final maturity of less than 12 months after the date of its creation but by its terms being renewable or extendible beyond
12 months after such date at the option of the borrower. When determining “Funded Debt,” indebtedness will not be included if, on or prior to the final maturity of that indebtedness, the Company has deposited the necessary funds for
the payment, redemption or satisfaction of that indebtedness in trust with the proper depositary. 
 “GAAP” means generally
accepted accounting principles in the United States of America, consistently applied, which are in effect on the Issue Date. At any time after the Issue Date, the Company may elect to apply International Financial Reporting Standards
(“IFRS”) accounting principles consistently applied, as in effect at the time of such election, in lieu of GAAP and, from and after any such election, references herein to GAAP shall thereafter be construed to mean IFRS;
provided that any such election, once made, shall be irrevocable; provided, further that any calculation or determination under the Indenture that requires the application of GAAP for periods that include fiscal quarters ended prior to the
Company’s election to apply IFRS shall remain as previously calculated or determined in accordance with GAAP. Promptly after the making of any such election, the Company shall deliver an Officer’s Certificate to the Trustee and a
notice to the Holders, in each case providing notice of any election made in accordance with this definition. 

“Guarantee” means the guarantee by each Guarantor of the Company’s Indenture Obligations pursuant to a guarantee given
in accordance with this Supplemental Indenture, including the Guarantees by the Guarantors on the Issue Date and any Guarantee delivered pursuant to Section 3.4. 

“Guarantor” means the Subsidiaries listed on the signature pages of this Supplemental Indenture as guarantors and each other
Subsidiary required to become a Guarantor after the Issue Date pursuant to Section 3.4, in each case, until such Guarantor’s Guarantee is released in accordance with the Initial Indenture. 

“Holders” mean the registered holders of the Notes. 

“Indenture Obligations” means the obligations of the Company and any other obligor under this Supplemental Indenture or under
the Notes, including any Guarantor, to pay principal of, premium, if any, and interest when due and payable, and all other amounts due or to 

  
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 become due under or in connection with this Supplemental Indenture, the Notes and the performance of all other
obligations to the Trustee and the Holders under this Supplemental Indenture and the Notes, according to the terms hereof or thereof. 

“Independent Investment Banker” means a Reference Treasury Dealer selected by the Company. 

“Insolvency or Liquidation Proceeding” means, with respect to any Person, any liquidation, dissolution or winding-up of such
Person, or any bankruptcy, reorganization, insolvency, receivership or similar proceeding with respect to such Person, whether voluntary or involuntary. 

“Interest Payment Date” has the meaning set forth in Section 2.3. 

“Investments” means, with respect to any Person, directly or indirectly, any advance, loan (including guarantees), or other
extension of credit or capital contribution to (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of others), or any purchase, acquisition or ownership by such Person of any
Capital Stock, bonds, notes, debentures or other securities issued or owned by, any other Person and all other items that would be classified as investments on a balance sheet prepared in accordance with GAAP. 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories
of Moody’s), a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P), a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch) or the equivalent
Investment Grade credit rating from any additional Rating Agency or Rating Agencies selected by the Company, as applicable. 

“Issue Date” means the original issue date of the initial Notes issued under this Supplemental Indenture. 

“Lien” means any mortgage, charge, pledge, lien (statutory or otherwise), security interest, hypothecation or other
encumbrance upon or with respect to any property of any kind, real or personal, movable or immovable, now owned or hereafter acquired. 

“Maturity” when used with respect to any Note means the date on which the principal of such Note becomes due and payable as
therein provided or as provided in this Supplemental Indenture, whether at Stated Maturity or the redemption date and whether by declaration of acceleration, Change of Control, call for redemption or otherwise. 

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

“Notes” has the meaning specified in Section 2.1. 

“Obligations” means any principal, interest (including, without limitation, Post-Petition Interest), penalties, fees,
indemnifications, reimbursement obligations, damages and other liabilities payable under the documentation governing any Funded Debt. 

  
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 “Permitted Holders” means (a) Marilyn Sands, her descendants (whether by blood
or adoption), her descendants’ spouses, her siblings, the descendants of her siblings (whether by blood or adoption), Hudson Ansley, Lindsay Caleo, William Caleo, Courtney Winslow, or Andrew Stern, or the estate of any of the foregoing Persons,
or The Sands Family Foundation, Inc., (b) trusts which are for the benefit of any combination of the Persons described in clause (a), or any trust for the benefit of any such trust, or (c) partnerships, limited liability companies or any other
entities which are controlled by any combination of the Persons described in clause (a), the estate of any such Persons, a trust referred to in the foregoing clause (b) or an entity that satisfies the conditions of this clause (c). 

“Person” means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization, any other company or entity or government or any agency or political subdivision thereof. 

“Post-Petition Interest” means, with respect to any indebtedness of any
Person, all interest accrued or accruing on such indebtedness after the commencement of any Insolvency or Liquidation Proceeding against such Person in accordance with and at the contract rate (including, without limitation, any rate applicable upon
default) specified in the agreement or instrument creating, evidencing or governing such indebtedness, whether or not, pursuant to applicable law or otherwise, the claim for such interest is allowed as a claim in such Insolvency or Liquidation
Proceeding. 
 “Principal Property” means, as of any date, any building, structure or other facility, together with the
land upon which it is erected and any fixtures which are a part of the building, structure or other facility, used primarily for manufacturing, processing or production, in each case located in the United States of America, and owned or leased or to
be owned or leased by the Company or any of its Subsidiaries, and in each case the net book value of which as of that date exceeds 2% of the Company’s Consolidated Net Tangible Assets as shown on the consolidated balance sheet contained in the
Company’s latest filing with the Commission, other than any such land, building, structure or other facility or portion thereof which is a pollution control facility, or which, in the opinion of the Board of Directors, is not of material
importance to the total business conducted by the Company and its Subsidiaries, considered as one enterprise. 
 “Property”
means any asset, revenue or any other property, whether tangible or intangible, real or personal, including, without limitation, any right to receive income. 

“Rating Agency” means S&P, Moody’s and Fitch or, if S&P, Moody’s or Fitch or any or all of them shall not
make a rating on the Notes publicly available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company (as certified by a resolution of the Board of Directors) which shall be substituted for
S&P, Moody’s or Fitch or any or all of them, as the case may be. 
 “Reference Treasury Dealer” means any of (1)
Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC or their successors; provided, however, that if Merrill Lynch, Pierce, Fenner & Smith Incorporated or J.P. Morgan Securities LLC cease to
be a primary United States Government securities dealer in New York City (a “Primary Treasury Dealer”), another Primary Treasury Dealer will be substituted by the Company and (2) any other Primary Treasury Dealer selected by the
Independent Investment Banker after consultation with the Company. 

  
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 “Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any redemption date, the average, as determined by the Independent Investment Banker, 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 Independent Investment Banker at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date. 

“S&P” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc., and its
successors. 
 “Sale and Leaseback Transaction” means any transaction or series of related transactions pursuant to which
the Company or a Subsidiary sells or transfers any property or asset in connection with the leasing, or the resale against installment payments, of such property or asset to the seller or transferor. 

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

“Senior Credit Facility” means that certain Fifth Amended and Restated Credit Agreement, dated as of October 13, 2016,
by and among the Company, CIH International S.à r.l., CIH Holdings S.à r.l., CB International Finance S.à r.l., Bank of America, N.A., as administrative agent, and the other agents and lenders party thereto from time to time, as
amended, restated, modified, supplemented, substituted, replaced, renewed or refinanced from time to time, including any agreement or agreements extending the maturity of, or refinancing all or any portion of the indebtedness under such agreement,
and any successor or replacement agreement or agreements with the same or any other borrowers, agents, creditors, lenders or group of creditors or lenders. 

“Stated Maturity” when used with respect to any indebtedness or any installment of interest thereon, means the dates
specified in such indebtedness as the fixed date on which the principal of such indebtedness or such installment of interest is due and payable. 

“Subsidiary” means any Person a majority of the equity ownership or the Voting Stock of which is at the time owned, directly
or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. 

“Treasury Rate” means, with respect to any redemption date, (1) the average of the yields in each statistical release
for the immediately preceding week designated “H.15” or any successor publication which is published by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities
adjusted to constant maturity under “U.S. government securities—Treasury constant maturities—nominal,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the
remaining term of the Notes to be redeemed, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a

  
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straight line basis, rounding to the nearest month) or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such
yields, the rate per year equal to the semi-annual equivalent yield-to-maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such redemption date. The Treasury Rate will be calculated on the third Business Day preceding the redemption date. 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended. 

“United States Government Obligations” means direct non-callable obligations of the United States of America for the payment
of which the full faith and credit of the United States of America is pledged. 
 “Voting Stock” means, with respect to any
Person, Capital Stock of any class or kind the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote
has been suspended by the happening of such a contingency. 
 ARTICLE TWO 

THE SERIES OF DEBT SECURITIES 

SECTION 2.1. Title of the Debt Securities. 

There shall be a series of Debt Securities designated the “3.700% Senior Notes due 2026” (the “Notes”). 

SECTION 2.2. Limitation on Aggregate Principal Amount. 

The aggregate principal amount of the Notes shall not be limited. The Company shall not execute and the Trustee shall not authenticate or
deliver Notes except as permitted by the terms of the Indenture. 
 SECTION 2.3. Interest and Interest Rates; Maturity Date of Notes.

 The Notes will mature on December 6, 2026 and will be unsecured senior obligations of the Company. Each Note will bear interest at
the rate of 3.700% per annum from December 6, 2016 or from the most recent interest payment date to which interest has been paid, payable semi-annually on June 6 and December 6 of each year (each an “Interest Payment
Date”), commencing June 6, 2017, to the Person in whose name the Note (or any predecessor Note) is registered at the close of business on the May 21 or November 21, as applicable, next preceding such Interest Payment
Date. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. The interest so payable on any Note which is not punctually paid or duly provided for on any Interest Payment Date shall forthwith cease to be
payable to the Person in whose name such Note is registered on the relevant regular record date, and such defaulted interest shall instead be payable to the Person in whose name such Note is registered on the special record date or other specified
date determined in accordance with the Indenture. 

  
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 If any Interest Payment Date or Stated Maturity falls on a day that is not a Business Day, the
required payment shall be made on the next Business Day as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or Stated Maturity, as the
case may be. 
 SECTION 2.4. Optional Redemption. 

At any time prior to September 6, 2026, the Notes may be redeemed in whole or in part at any time or in part from time to time, at the
Company’s option, at a redemption price equal to the greater of: 
 (i) 100% of the principal amount of the Notes to be
redeemed; and 
 (ii) the sum of the present values of the remaining scheduled payments of principal and interest (excluding
interest accrued to the redemption date) on the Notes (assuming for this purpose, that the Notes matured on September 6, 2026) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the applicable Treasury Rate plus 25 basis points; 
 plus, in each case, accrued and unpaid interest on the principal
amount being redeemed to but excluding the redemption date. 
 On or after September 6, 2026, the Notes may be redeemed in whole or in part
at any time or in part from time to time, at the Company’s option, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, together with accrued and unpaid interest to but excluding the redemption date. 

The provisions of Section 5.2, 5.3 and 5.6 of the Initial Indenture shall be applicable to any optional redemption of the Notes. 

SECTION 2.5. Sinking Fund.

The Notes are not entitled to the benefit of any sinking fund. 

SECTION 2.6. Method of Payment. 

Settlement for the Notes will be made in same day funds. All payments of principal and interest will be made by the Company in same day
funds. The Notes will trade in the Same-Day Funds Settlement System of The Depository Trust Company (the “Depositary” or “DTC”) until maturity, and secondary market trading activity for the Notes will therefore
settle in same day funds. 
 Principal of, premium, if any, and interest on the Notes will be payable, and the Notes will be exchangeable
and transferable, at the office or agency of the Company in the City of New York maintained for such purposes (which initially will be the Trustee); provided, however, that payment of interest may be made at the option of the Company
by check mailed to the Person entitled thereto as shown on the security register. 

  
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 SECTION 2.7. Currency. 

Principal and interest on the Notes shall be payable in United States Dollars or 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. 
 SECTION 2.8. Registered Securities; Global Form.

 The Notes shall be issuable only in fully registered form without coupons, in denominations of $2,000 and any integral multiple of $1,000
in excess thereof. No service charge will be made for any registration of transfer, exchange or redemption of Notes, except in certain circumstances for any tax or other governmental charge that may be imposed in connection therewith. The
depository for the Notes shall be the DTC. The Notes shall not be issuable in definitive form. 
 SECTION 2.9. Form of Notes.

 The Notes shall be substantially in the form attached as Exhibit A hereto. 

ARTICLE THREE 
 COVENANTS

 The following covenants shall apply to the Notes (but not with respect to any other series of Debt Securities), and are in addition
to the covenants set forth in Article Four of the Initial Indenture. With respect to the Notes (but not with respect to any other series of Debt Securities), to the extent inconsistent with the covenants contained in Article Four of the Initial
Indenture the covenants set forth in this Supplemental Indenture shall govern. 
 SECTION 3.1. Limitation on Liens. 

So long as any of the Notes remain Outstanding, the Company will not, and will not permit any Subsidiary to, issue, assume or guarantee any
Funded Debt that is secured by a mortgage, pledge, security interest or other Lien or encumbrance upon or with respect to any Principal Property or on the Capital Stock of any Subsidiary that owns a Principal Property unless: 

(a) the Company secures the Notes equally and ratably with (or prior to) any and all Funded Debt secured by that Lien, or 

(b) in the case of Funded Debt other than Capital Markets Debt, immediately after giving effect to the granting of any such
Lien and the incurrence of any Funded Debt in connection therewith, the Company’s Consolidated Fixed Charge Coverage Ratio would be greater than 2.0 to 1.0; 

  
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 provided, however, that nothing contained in the foregoing shall prevent, restrict or apply to the
following: 
 (i) Liens existing as of the Issue Date (excluding Liens securing the Senior Credit Facility) on any Property
or assets owned or leased by the Company or any Subsidiary; 
 (ii) Liens securing any obligations under the Senior Credit
Facility in an amount not to exceed the maximum amount permitted to be outstanding under the Senior Credit Facility on the Issue Date (including the incremental credit facilities contemplated thereunder); 

(iii) Liens on Property or assets of, or any shares of stock securing Funded Debt of, any corporation or other Person existing
at the time such corporation or other Person becomes a Subsidiary; 
 (iv) Liens on Property, assets or shares of stock
securing Funded Debt existing at the time of an acquisition, including an acquisition through merger or consolidation, and Liens to secure Funded Debt incurred prior to, at the time of or within 180 days after the later of the completion of the
acquisition, or the completion of the construction and commencement of the operation of any such Property, for the purpose of financing all or any part of the purchase price or construction cost of that Property; 

(v) Liens on any Property or assets to secure all or any portion of the cost of development, operation, construction,
alteration, repair or improvement of all or any part of such Property or assets, or to secure Funded Debt incurred prior to, at the time of or within 180 days after the completion of such development, operation, construction, alteration, repair or
improvement for the purpose of financing all or any part of such costs; 
 (vi) Liens in favor of, or which secure Funded
Debt owing to, the Company or a Subsidiary; 
 (vii) Liens arising from the assignment of moneys due and to become due under
contracts between the Company or any Subsidiary and the United States of America, any State, Commonwealth, Territory or possession thereof or any agency, department, instrumentality or political subdivision of any thereof; or Liens in favor of the
United States of America, any State, Commonwealth, Territory or possession thereof or any agency, department, instrumentality or political subdivision of any thereof, to secure progress, advance or other payments pursuant to any contract or
provision of any statute, or pursuant to the provisions of any contract not directly or indirectly in connection with securing any Funded Debt; 

(viii) Liens arising by reason of any attachment, judgment, decree or order of any court or other governmental authority, so
long as such Lien is adequately bonded and any appropriate legal proceedings which may have been initiated for review of such attachment, judgment, decree or order shall not have been finally terminated or so long as the period within which such
proceedings may be initiated shall not have expired; 

  
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 (ix) any deposit or pledge as security for the performance of any bid, tender,
contract, lease or undertaking not directly or indirectly in connection with the securing of any Funded Debt; any deposit or pledge with any governmental agency required or permitted to qualify the Company or any Subsidiary to conduct business, to
maintain self-insurance or to obtain the benefits of any law pertaining to worker’s compensation, unemployment insurance, pensions, social security or similar matters, or to obtain any stay or discharge in any legal or administrative
proceedings; deposits or pledges to obtain the release of mechanics’ worker’s, repairmen’s, materialmen’s or warehousemen’s liens on the release of property in the possession of a common carrier; any security interest
created in connection with the sale, discount or guarantee of notes, chattel mortgages, leases, accounts receivable, trade acceptances or other paper, or contingent repurchase obligations, arising out of sales of merchandise in the ordinary course
of business; liens for taxes not yet due and payable or being contested in good faith; any deposit or pledge in connection with appeal or surety bonds; or other deposits or pledges similar to those referred to in this clause (ix); 

(x) Liens created after the Issue Date on Property leased to or purchased by the Company or any Subsidiary after that date and
securing, directly or indirectly, obligations issued by a State, a Territory or a possession of the United States of America, or any political subdivision of any of the foregoing, or the District of Columbia, to finance the cost of acquisition or
cost of construction of such Property; 
 (xi) Liens arising from surveys exceptions, title defects, encumbrances, easements,
reservations of, or rights of others for, rights of way, sewers, electric lines, telegraph or telephone lines and other similar purposes or zoning or other restrictions as to the use of real property not interfering with the ordinary conduct of the
business of the Company or any of its Subsidiaries; 
 (xii) Liens arising by operation of law in favor of mechanics,
materialmen, laborers, employees or suppliers, incurred in the ordinary course of business for sums which are not yet delinquent or are being contested in good faith by negotiations or by appropriate proceedings which suspend the collection thereof;

 (xiii) Liens arising from zoning restrictions, easements, licenses, reservations, provisions, covenants, conditions,
waivers, restrictions on the use of property or minor irregularities of title (and with respect to leasehold interests, mortgages, obligations, Liens and other encumbrances incurred, created, assumed or permitted to exist and arising by, through or
under a landlord or owner of the leased Property, with or without consent of the lessee), none of which materially impairs the use of any parcel of Property material to the operation of the business of the Company or any Subsidiary or the value of
such Property for the purpose of such business; or 
 (xiv) any extension, renewal, substitution or replacement (or
successive extensions, renewals, substitutions or replacements), as a whole or in part, of any Lien referred to in subparagraphs (i) through (xiii) above or the Funded Debt secured thereby; provided, that (1) such extension,
renewal, substitution or replacement Lien shall be limited to all or any part of the same Property or assets or shares of stock that secured the Lien extended, renewed, substituted or replaced (plus improvements on such Property and any other
Property or assets not then constituting a Principal Property) and (2) the Funded Debt secured by such Lien at such time is not increased. 

  
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 SECTION 3.2. Purchase of Notes upon a Change of Control Triggering Event. 

(a) If a Change of Control Triggering Event shall occur at any time, then each Holder of Notes shall have the right to require that the Company
purchase such Holder’s Notes in whole or in part (equal to $2,000 or an integral multiple of $1,000 in excess thereof), at a purchase price (the “Change of Control Purchase Price”) in cash in an amount equal to 101% of the
principal amount of such Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of purchase (the “Change of Control Purchase Date”), pursuant to the offer described in subsection (b) of this Section (the
“Change of Control Offer”) and in accordance with the procedures set forth in subsections (b), (c), (d) and (e) of this Section 3.2. 

(b) Within 30 days following any Change of Control Triggering Event, the Company shall (i) cause a notice of the Change of Control Offer
to be sent at least once to the Dow Jones News Service or similar business news service in the United States of America; and (ii) notify the Trustee thereof and give written notice (a “Change of Control Purchase Notice”) of
such Change of Control to each Holder by first-class mail, postage prepaid, at its address appearing in the Security Register stating or including: 

(1) that a Change of Control Triggering Event has occurred, the date of such event, and that such Holder has the right to
require the Company to repurchase such Holder’s Notes at the Change of Control Purchase Price; 
 (2) the circumstances
and relevant facts regarding such Change of Control Triggering Event (including information with respect to the Company’s pro forma consolidated historical income, cash flow and capitalization after giving effect to such Change of Control
Triggering Event); 
 (3) that the Change of Control Offer is being made pursuant to this Section 3.2 and that all Notes
properly tendered pursuant to the Change of Control Offer will be accepted for payment at the Change of Control Purchase Price; 

(4) the Change of Control Purchase Date, which shall be a Business Day no earlier than 30 days nor later than 60 days from the
date such notice is mailed, or such later date as is necessary to comply with requirements under the Exchange Act; 
 (5) the
Change of Control Purchase Price; 
 (6) the names and addresses of the Paying Agent and the offices or agencies referred to
in Section 4.2 of the Initial Indenture; 
 (7) that Notes must be surrendered on or prior to the Change of Control
Purchase Date to the Paying Agent at the office of the Paying Agent or to an office or agency referred to in Section 4.2 of the Initial Indenture to collect payment; 

(8) that the Change of Control Purchase Price for any Note which has been properly tendered and not withdrawn will be paid
promptly following the Change of Control Offer Purchase Date; 

  
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 (9) the procedures for withdrawing a tender of Notes; 

(10) that any Note not tendered will continue to accrue interest; and 

(11) that, unless the Company defaults in the payment of the Change of Control Purchase Price, any Notes accepted for payment
pursuant to the Change of Control Offer shall cease to accrue interest after the Change of Control Purchase Date. 
 (c) Upon receipt by the
Company of the proper tender of Notes, the Holder of the Note in respect of which such proper tender was made shall (unless the tender of such Note is properly withdrawn) thereafter be entitled to receive solely the Change of Control Purchase Price
with respect to such Note. Upon surrender of any such Note for purchase in accordance with the foregoing provisions, such Note shall be paid by the Company at the Change of Control Purchase Price; provided, however, that installments
of interest whose Stated Maturity is on or prior to the Change of Control Purchase Date shall be payable to the Holders of such Notes registered as such on the relevant record dates according to the terms and the provisions of Section 2.3. If
any Note tendered for purchase shall not be so paid upon surrender thereof, the principal thereof (and premium, if any, thereon) shall, until paid, bear interest from the Change of Control Purchase Date at the rate borne by such Note. Holders
electing to have Notes purchased will be required to surrender such Notes to the Paying Agent at the address specified in the Change of Control Purchase Notice at least two Business Days prior to the Change of Control Purchase Date. Any Note that is
to be purchased only in part shall be surrendered to a Paying Agent at the office of such Paying Agent (with, if the note registrar designated pursuant to Section 4.2 of the Initial Indenture or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the note registrar or the Trustee, as the case may be, duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such Note, without service charge, one or more new Notes of any authorized denomination as requested by such Holder in an aggregate principal amount equal to, and in exchange
for, the portion of the principal amount of the Note so surrendered that is not purchased. 
 (d) The Company shall (i) not later than
the Change of Control Purchase Date, accept for payment Notes or portions thereof tendered pursuant to the Change of Control Offer, (ii) not later than 11:00 a.m. (New York time) on the Change of Control Purchase Date, deposit with the Paying
Agent an amount of cash sufficient to pay the aggregate Change of Control Purchase Price of all the Notes or portions thereof which are to be purchased as of the Change of Control Purchase Date and (iii) not later than the Change of Control
Purchase Date, deliver to the Paying Agent an Officers’ Certificate stating the Notes or portions thereof accepted for payment by the Company. The Paying Agent shall promptly mail or deliver to Holders of Notes so accepted payment in an amount
equal to the Change of Control Purchase Price of the Notes purchased from each such Holder, and the Company shall execute and the Trustee shall promptly authenticate and mail or deliver to such Holders a new Note equal in principal amount to any
unpurchased portion of the Note surrendered. Any Notes not so accepted shall be promptly mailed or delivered by the Paying Agent at the Company’s expense to the Holder thereof. The Company will publicly announce the results of the Change of
Control Offer on the Change of Control Purchase Date. For purposes of this Section 3.2, the Company shall choose a Paying Agent which shall not be the Company. 

  
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 (e) Tendered Notes may be withdrawn before or after delivery by the Holder to the Paying Agent at
the office of the Paying Agent of the Note to which such Change of Control Purchase Notice relates, by means of a written notice of withdrawal delivered by the Holder to the Paying Agent at the office of the Paying Agent or to the office or agency
referred to in Section 4.2 of the Initial Indenture to which the related Change of Control Purchase Notice was delivered not later than three Business Days prior to the Change of Control Purchase Date specifying, as applicable: 

(1) the name of the Holder; 

(2) the certificate number of the Note in respect of which such notice of withdrawal is being submitted; 

(3) the principal amount of the Note (which shall be $2,000 or an integral multiple of $1,000 in excess thereof) delivered for
purchase by the Holder as to which such notice of withdrawal is being submitted; and 
 (4) the principal amount, if any, of
such Note (which shall be $2,000 or an integral multiple of $1,000 in excess thereof) that remains subject to the original Change of Control Purchase Notice and that has been or will be delivered for purchase by the Company. 

(f) Subject to applicable escheat laws, as provided in the Notes, the Trustee and the Paying Agent shall return to the Company any cash that
remains unclaimed, together with interest or dividends, if any, thereon, held by them for the payment of the Change of Control Purchase Price; provided, however, that, (x) to the extent that the aggregate amount of cash deposited
by the Company pursuant to clause (ii) of paragraph (d) above exceeds the aggregate Change of Control Purchase Price of the Notes or portions thereof to be purchased, then the Trustee shall hold such excess for the Company and (y) unless
otherwise directed by the Company in writing, promptly after the Business Day following the Change of Control Purchase Date the Trustee shall return any such excess to the Company together with interest, if any, thereon. 

(g) Notwithstanding the foregoing, the Company shall not be required to make a Change of Control Offer following a Change of Control
Triggering Event if a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section 3.2 applicable to a Change of Control Offer made by the Company and purchases
all Notes validly tendered and not withdrawn under such Change of Control Offer. 
 (h) The Company shall comply with the applicable tender
offer rules, including Rule 14e-1 under the Exchange Act, and any other applicable securities laws or regulations in connection with a Change of Control Offer. To the extent that the provisions of any securities laws or regulations conflict
with the provisions of the Indenture or the Notes, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under the Indenture or the Notes as a result thereof. 

  
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 SECTION 3.3. Limitation on Sale and Leaseback Transactions. 

So long as any of the Notes remain Outstanding, neither the Company nor any Subsidiary shall enter into any arrangement with any Person (other
than the Company or any Subsidiary) whereby the Company or a Subsidiary agrees to lease any Principal Property (except for leases for a term of not more than three years) which has been or is to be sold or transferred more than 120 days after the
later of (i) such Principal Property having been acquired by the Company or a Subsidiary and (ii) completion of construction and commencement of full operation thereof, by the Company or a Subsidiary to that Person unless (a) the net proceeds
to the Company or a Subsidiary from the sale or transfer equal or exceed the fair value, as determined by the Board of Directors, of the Principal Property so leased, (b) immediately after giving effect to such Sale and Leaseback Transaction, the
Company’s Consolidated Fixed Charge Coverage Ratio would be greater than 2.0 to 1.0, or (c) the Company, within 120 days after the effective date of the Sale and Leaseback Transaction, applies an amount equal to the fair value as determined by
the Company’s Board of Directors of the Principal Property so leased to (x) the prepayment or retirement of the Company’s Funded Debt, which may include the Notes; (y) the acquisition of additional real property for the Company or any
Subsidiary. A Sale and Leaseback Transaction shall not include any such arrangement for financing air, water or noise pollution control facilities or sewage or solid waste disposal facilities or involving industrial development bonds which are
tax-exempt pursuant to Section 103 of the Code (or which receive similar tax treatment under any subsequent amendments thereto or successor laws thereof). 

SECTION 3.4. Additional Guarantees. 

In the event the Company (i) organizes or acquires any Subsidiary after the Issue Date that is not a Guarantor and such Subsidiary, directly
or indirectly, provides a guarantee of the Company’s obligations under the Senior Credit Facility or (ii) causes or permits any Subsidiary that is not a Guarantor to, directly or indirectly, guarantee the Company’s obligations under the
Senior Credit Facility, then, in each case the Company shall cause such Subsidiary to simultaneously execute and deliver a supplemental indenture to the Indenture pursuant to which it will become a Guarantor under the Indenture with respect to the
Notes. 
 If the Notes are defeased in accordance with the terms of Section 4.1, each Guarantor shall be released and discharged of its
Guarantee obligations in respect of the Indenture, the Supplemental Indenture and the Notes. The Guarantee of a Guarantor shall also be released and discharged as provided in Section 14.6 of the Initial Indenture. 

SECTION 3.5. Waiver of Certain Covenants. 

The Company may omit in a particular instance to comply with any covenant or condition set forth in Sections 3.1 through 3.4, if, before or
after the time for such compliance, the Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding shall, by act of such Holders, waive such compliance in such instance with such covenant or condition,
except as provided in Section 8.2, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the
Trustee in respect of any such covenant or condition shall remain in full force and effect. 

  
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 ARTICLE FOUR 

DEFEASANCE 
 The following
provisions of this Article Four shall apply to the Notes (but not with respect to any other series of Debt Securities). 
 SECTION 4.1.
Legal Defeasance. 
 The Company will be deemed to have paid and the Company and the Guarantors will be discharged from any and all
obligations in respect of the Notes on the 91st day after the date of the deposit referred to in clause (a) of this Section 4.1, and the provisions of this Supplemental Indenture will no longer be in effect with respect to the Notes, and the
Trustee, at the expense of the Company, shall execute proper instruments acknowledging the same if: 
 (a) the Company has
irrevocably deposited or caused to be irrevocably deposited with the Trustee and conveyed all right, title and interest to the Trustee for the benefit of the Holders of Notes, under the terms of an irrevocable trust agreement in form and substance
satisfactory to the Trustee as trust funds in trust, specifically pledged to the Trustee for the benefit of such Holders as security for payment of the principal of and interest, if any, on the Notes, and dedicated solely to, the benefit of such
Holders, in and to (1) money in an amount, (2) United States Government Obligations that, through the payment of interest and principal in respect thereof in accordance with their terms, will provide, not later than one day before the due date of
any payment referred to in this clause (a), money in an amount or (3) a combination thereof in an amount sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, without consideration of the reinvestment of such interest and after payment of all federal, state and local taxes or other charges and assessments in respect thereof payable by the Trustee, the
principal of and interest on the Outstanding Notes on the Stated Maturity of such principal or interest; provided, that the Trustee shall have been irrevocably instructed to apply such money or the proceeds of such United States Government
Obligations to the payment of such principal and interest with respect to the Notes; 
 (b) the Company has delivered to the
Trustee either (x) an Opinion of Counsel to the effect that Holders of Notes will not recognize income, gain or loss for federal income tax purposes as a result of the Company’s exercise of its option under this Section 4.1 and will be subject
to federal income tax on the same amount and in the same manner and at the same times as would have been the case if such option had not been exercised, which Opinion of Counsel shall be based upon (and accompanied by a copy of) a ruling of the
Internal Revenue Service to the same effect unless there has been a change in applicable federal income tax law after the Issue Date such that a ruling is no longer required or (y) a ruling directed to the Trustee received from the Internal Revenue
Service to the same effect as the aforementioned Opinion of Counsel; 
 (c) immediately after giving effect to such deposit,
on a pro forma basis, no Default or Event of Default with respect to the Notes shall have occurred and be continuing on the date of such deposit or, insofar as Sections 5.1(f) and 5.1(g) are concerned, at any time during the period ending on the
91st day after such date of such deposit; and 
 (d) the Company has delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, in each case stating that all conditions precedent provided for herein relating to the defeasance contemplated by this Section 4.1 have been complied with. 

  
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 Notwithstanding the foregoing paragraph, the Company’s obligations in Sections 2.4, 2.6,
2.8, 2.9, 2.10, 2.12, 2.13, 4.1, 4.2, 11.2 and 11.6 of the Initial Indenture and Sections 4.4, 4.5 and 5.1 hereof shall survive until the Notes are no longer Outstanding. Thereafter, the Company’s obligations in Sections 4.4 and 4.5 hereof
shall survive and Section 11.2 of the Initial Indenture shall survive. 
 After any such irrevocable deposit, the Trustee upon request shall
acknowledge in writing the discharge of the Company’s obligations under the Notes and the Indenture with respect to the Notes except for those surviving obligations in the immediately preceding paragraph. 

SECTION 4.2. Defeasance of Certain Obligations. 

The Company may omit to comply with any term, provision or condition set forth in Sections 3.1, 3.2, 3.3 and 3.4 hereof and a breach with
respect to Sections 3.1, 3.2, 3.3 or 3.4 shall be deemed not to be an Event of Default, in each case with respect to the Outstanding Notes if: 

(a) with reference to this Section 4.2, the Company has irrevocably deposited or caused to be irrevocably deposited with the
Trustee (or another trustee satisfying the requirements of the Initial Indenture) and conveyed all right, title and interest to the Trustee for the benefit of the Holders of Notes, under the terms of an irrevocable trust agreement in form and
substance satisfactory to the Trustee as trust funds in trust, specifically pledged to the Trustee for the benefit of such Holders as security for payment of the principal of and interest, if any, on the Notes, and dedicated solely to, the benefit
of such Holders, in and to (A) money in an amount, (B) United States Government Obligations that, through the payment of interest and principal in respect thereof in accordance with their terms, will provide, not later than one day before the due
date of any payment referred to in this clause (a), money in an amount or (C) a combination thereof in an amount sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge, without consideration of the reinvestment of such interest and after payment of all federal, state and local taxes or other charges and assessments in respect thereof payable by the Trustee,
the principal of and interest on the Outstanding Notes on the Stated Maturity of such principal or interest; provided, that the Trustee shall have been irrevocably instructed to apply such money or the proceeds of such United States
Government Obligations to the payment of such principal and interest with respect to the Notes; 
 (b) the Company has
delivered to the Trustee an Opinion of Counsel to the effect that the Holders of Notes will not recognize income, gain or loss for United States 

  
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federal income tax purposes as a result of such deposit and defeasance of such covenants and Events of Default and will be subject to federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit and defeasance had not occurred; 
 (c) immediately after
giving effect to such deposit on a pro forma basis, no Default or Event of Default with respect to the Notes shall have occurred and be continuing on the date of such deposit or, insofar as Sections 5.1(f) and 5.1(g) are concerned, at any time
during the period ending on the 91st day after such date of such deposit; 
 (d) if the Notes are then listed on a national
securities exchange, the Company has delivered to the Trustee an Opinion of Counsel to the effect that the Notes will not be delisted as a result of such deposit, defeasance and discharge; and 

(e) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating that
all conditions precedent provided for herein relating to the defeasance contemplated by this Section 4.2 have been complied with. 
 SECTION
4.3. Application of Trust Money. 
 Subject to Section 4.5, the Trustee or Paying Agent shall hold in trust money or United States
Government Obligations deposited with it pursuant to Section 4.1 or 4.2, as the case may be, and shall apply the deposited money and the proceeds from United States Government Obligations in accordance with the Notes and this Supplemental Indenture
to the payment of principal of and interest on the Notes; but such money need not be segregated from other funds except to the extent required by law. 

SECTION 4.4. Repayment to Company. 

Subject to Sections 4.1 and 4.2, the Trustee and the Paying Agent shall promptly pay to the Company upon request set forth in an
Officers’ Certificate any excess money held by them at any time and thereupon shall be relieved from all liability with respect to such money. The Trustee and the Paying Agent shall pay to the Company upon request any money held by them with
respect to the Notes for the payment of principal or interest that remains unclaimed for two years; provided, that the Trustee or Paying Agent before being required to make any payment may cause to be published at the expense of the Company
once in a newspaper of general circulation in the City of New York or mail to each Holder of Notes entitled to such money at such Holder’s address notice that such money remains unclaimed and that after a date specified therein (which shall be
at least 30 days from the date of such publication or mailing) any unclaimed balance of such money then remaining will be repaid to the Company. After payment to the Company, Holders of Notes entitled to such money must look to the Company or the
Guarantors, as the case may be, for payment as general creditors unless an applicable law designates another Person, and all liability of the Trustee and such Paying Agent with respect to such money shall cease. 

  
 -21- 

 SECTION 4.5. Reinstatement. 

If the Trustee or Paying Agent is unable to apply any money or United States Government Obligations in accordance with Section 4.1 or 4.2, as
the case may be, by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under the Indenture and
the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 4.1 or 4.2, as the case may be, until such time as the Trustee or Paying Agent is permitted to apply all such money or United States Government
Obligations in accordance with Section 4.1 or 4.2, as the case may be; provided, that, if the Company has made any payment of principal of or interest on any Notes because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of Notes to receive such payment from the money or United States Government Obligations held by the Trustee or Paying Agent. 

ARTICLE FIVE  

REMEDIES 
 The following
provisions of this Article Five shall apply to the Notes (but not with respect to any other series of Debt Securities) and shall replace in its entirety Section 7.1 of the Initial Indenture. 

SECTION 5.1. Events of Default. 

Whenever used herein or in the Initial Indenture, an “Event of Default” means any one of the following events: 

(a) there shall be a default in the payment of the principal of (or premium, if any, on) any Note at its Maturity (upon
acceleration, optional redemption or otherwise); 
 (b) there shall be a default in the payment of any interest on any Note
when it becomes due and payable, and such default shall continue for a period of 30 days; 
 (c) there shall be a default in
the performance, or breach, of any other covenant or agreement of the Company or any Guarantor contained in the Notes or in the Indenture, and continuance of such default or breach for a period of at least 90 days after the date on which written
notice specifying such default or breach and requiring the Company or such Guarantor to remedy the same and stating that such notice is a “Notice of Default” hereunder shall have been given to the Company or such Guarantor, as the
case may be, by the Trustee, or to the Company or such Guarantor, as the case may be, and the Trustee by the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes provided that, notwithstanding the foregoing, in
no event shall an Event of Default with respect to any failure by the Company to comply with Section 4.5 of the Initial Indenture or any failure by the Company to comply with the requirements of Section 314(a)(1) of the Trust Indenture Act be
deemed to have occurred unless (x) the report, document, or other information required pursuant to such sections is past due under the Initial Indenture by at least 180 days and (y) such failure to comply has not been cured or waived prior to the
90th day after written notice to the Company by the Trustee or to the Company and the Trustee from the Holders of not less than 25% of the aggregate principal amount of the then Outstanding Notes; 

  
 -22- 

 (d) the failure by the Company to make any payment, on or before the end of the
applicable grace period, after the maturity of any indebtedness of the Company with an aggregate principal amount then outstanding in excess of $100.0 million or the acceleration of indebtedness of the Company with an aggregate principal amount then
outstanding in excess of $100.0 million as a result of a default with respect to such indebtedness, and such indebtedness, in either case, is not discharged or such acceleration shall not have been cured, waived, rescinded or annulled within a
period of 30 days after there shall have been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Notes, a written
notice specifying such failure to pay or acceleration and requiring the Company to cause such acceleration to be cured, waived, rescinded or annulled or to cause such indebtedness to be discharged and stating that such notice is a “Notice of
Default” hereunder; 
 (e) any Guarantee of a Guarantor that is a Significant Subsidiary of the Company shall for
any reason cease to be, or be asserted in writing by any Guarantor or the Company not to be, in full force and effect and enforceable in accordance with its terms, except to the extent contemplated by the Indenture; 

(f) there shall have been the entry by a court of competent jurisdiction of (i) a decree or order for relief in respect of
the Company in an involuntary case or proceeding under any applicable Bankruptcy Law or (ii) a decree or order adjudging the Company bankrupt or insolvent, or seeking reorganization, arrangement, adjustment or composition of or in respect of
the Company under any applicable federal or state law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or of any substantial part of their respective Properties, or ordering
the winding up or liquidation of their affairs, and any such decree or order for relief shall continue to be in effect, or any such other decree or order shall be unstayed and in effect, for a period of 60 consecutive days; or 

(g) (i) the Company commences a voluntary case or proceeding under any applicable Bankruptcy Law or any other case or
proceeding to be adjudicated bankrupt or insolvent, (ii) the Company consents to the entry of a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Bankruptcy Law or to the commencement
of any bankruptcy or insolvency case or proceeding against it, (iii) the Company files a petition or answer or consent seeking reorganization or relief under any applicable federal or state law, (iv) the Company (1) consents to the
filing of such petition or the appointment of, or taking possession by, a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Company or of any substantial part of its Properties, or (2) makes an
assignment for the benefit of creditors. 
 The Company shall deliver to the Trustee within five days after the occurrence thereof, written
notice, in the form of an Officers’ Certificate, of any Default, its status and what action the Company is taking or proposes to take with respect thereto. 

  
 -23- 

 SECTION 5.2. Acceleration of Maturity; Rescission and Annulment. 

If an Event of Default shall occur and be continuing (other than an Event of Default pursuant to Section 5.1(f) or (g) with respect to the
Company), the Trustee or the Holders of not less than 25% in aggregate principal amount of the Notes then Outstanding may, and the Trustee at the request of the Holders of not less than 25% in aggregate principal amount of the Notes then Outstanding
shall, declare all unpaid principal of, premium, if any, and accrued interest on all the Notes to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders of the Notes). If an Event of
Default pursuant to Section 5.1(f) or (g) shall occur and be continuing, all unpaid principal of, premium, if any, and accrued interest on all the Notes shall be due and payable immediately without any declaration or other act on the part of
the Trustee or any Holder. Thereupon such principal shall become immediately due and payable, and the Trustee may, at its discretion, proceed to protect and enforce the rights of the Holders of Notes by appropriate judicial proceeding. 

At any time after such acceleration has occurred but before a judgment or decree for payment of the money due has been obtained by the
Trustee, the Holders of a majority in aggregate principal amount of the Notes Outstanding, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: 

(a) the Company has paid or deposited with the Trustee a sum sufficient to pay 

(i) all sums paid or advanced by the Trustee under Section 11.2 of the Initial Indenture and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, 
 (ii) to the extent payment of such interest
is lawful, if interest on overdue installments of interest and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid, and 

(iii) to the extent that payment of such interest is lawful, interest upon overdue interest at the rate borne by the Notes;

 (b) all Events of Default, other than the non-payment of principal of the Notes which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 7.5 of the Initial Indenture; and 
 (c) the
rescission will not conflict with any judgment or decree. 
 No such rescission shall affect any subsequent Default or impair any right
consequent thereon. 
 ARTICLE SIX 

MISCELLANEOUS PROVISIONS 

SECTION 6.1. Ratification of Indenture. 

Except as expressly modified or amended hereby with respect to the Notes, the Initial Indenture continues in full force and effect and is in
all respects confirmed and preserved. 

  
 -24- 

 SECTION 6.2. Governing Law. 

This Supplemental Indenture, the Notes and the Guarantees will be governed by, and construed in accordance with, the laws of the State of New
York, without giving effect to the conflicts of law principles thereof. This Supplemental Indenture is subject to the provisions of the Trust Indenture Act and shall, to the extent applicable, be governed by such provisions. 

SECTION 6.3. Counterparts. 

This Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same instrument. 
 ARTICLE SEVEN 

GUARANTEES 
 Each of the
Guarantors hereby jointly and severally guarantees the Notes on a senior unsecured basis on the terms set forth in Article Fourteen of the Initial Indenture. 

ARTICLE EIGHT 
 SUPPLEMENTAL
INDENTURES 
 The following provisions of this Article Eight shall apply to the Notes (but not with respect to any other series of Debt
Securities) and shall replace in their entirety Sections 12.1 and 12.2 of the Initial Indenture. To the extent this Article Eight is inconsistent with or conflicts with any provisions of Article Twelve in the Initial Indenture the provisions of
this Article Eight shall govern. 
 SECTION 8.1. Supplemental Indentures and Agreements Without Consent of Holders. 

Without the consent of any Holders, the Company and the Guarantors, if any, when authorized by a Certified Resolution, and the Trustee, at any
time and from time to time, may enter into one or more indentures supplemental hereto or agreements or other instruments with respect to any Guarantee, in form and substance satisfactory to the Trustee, for any of the following purposes: 

(a) to evidence the succession of another Person to the Company, any Guarantor or any other obligor upon the Notes, and the
assumption by any such successor of the covenants of the Company or such Guarantor or obligor herein and in the Notes and in any Guarantee pursuant to Article Ten of the Initial Indenture; 

(b) to add to the covenants of the Company, any Guarantor or any other obligor upon the Notes for the benefit of the Holders,
or to surrender any right or power herein conferred upon the Company, any Guarantor or any other obligor upon the Notes, as applicable, herein, in the Notes or in any Guarantee; 

  
 -25- 

 (c) to cure any ambiguity, to cure or correct or supplement any provision herein
which may be defective or inconsistent with any other provision herein, in the Notes or in any Guarantee, or to make any change to any other provisions of this Supplemental Indenture, the Indenture, the Notes or any Guarantee to the extent such
change shall not adversely affect the interests of the Holders in any material respect; 
 (d) to comply with the
requirements of the Commission in order to effect or maintain the qualification of this Supplemental Indenture and the Initial Indenture under the Trust Indenture Act, as contemplated by Section 12.4 of the Initial Indenture or otherwise; 

(e) to evidence and provide the acceptance of the appointment of a successor trustee hereunder; 

(f) to mortgage, pledge, hypothecate or grant a security interest in favor of the Trustee for the benefit of the Holders as
security for the payment and performance of the Indenture Obligations, in any property or assets, including any which are required to be mortgaged, pledged or hypothecated, or in which a security interest is required to be granted to the Trustee
pursuant to this Supplemental Indenture, the Initial Indenture or otherwise; 
 (g) to add a Guarantor or to release a
Guarantor in accordance with the terms of the Indenture; or 
 (h) to add to or change any of the provisions of this
Indenture as contemplated in Section 11.7(b) of the Initial Indenture; 
 and the Company hereby covenants that it will fully perform all the
requirements of any such supplemental indenture which may be in effect from time to time. Nothing in this Section 8.1 shall affect or limit the right or obligation of the Company to execute and deliver to the Trustee any instrument of further
assurance or other instrument which elsewhere in the Indenture it is provided shall be delivered to the Trustee. 
 The Trustee shall join
with the Company in the execution of any such supplemental indenture, make any further appropriate agreements and stipulations which may be therein contained and accept the conveyance, transfer, assignment, mortgage or pledge of any Property
thereunder, but the Trustee shall not be obligated to enter into any such supplemental indenture which adversely affects the Trustee’s own rights, duties or immunities under this Supplemental Indenture or otherwise. 

Any supplemental indenture authorized by the provisions of this Section 8.1 may be executed by the Company, the Guarantors and the Trustee
without the consent of the Holders of any of the Notes at the time Outstanding, notwithstanding any of the provisions of Section 8.2. The Trustee may rely on an Opinion of Counsel as conclusive evidence that the execution of any amendment or
supplemental indenture has been effected in compliance with this Section 8.1. 

  
 -26- 

 SECTION 8.2. Supplemental Indentures and Agreements with Consent of Holders. 

With the consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Notes, by act of said Holders
delivered to the Company, each Guarantor, if any, and the Trustee, the Company and each Guarantor (if a party thereto) when authorized by a Certified Resolution, and the Trustee, may enter into an indenture or indentures supplemental hereto or
agreements or other instruments with respect to any Guarantee in form and substance satisfactory to the Trustee, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Supplemental
Indenture or the Initial Indenture or of modifying in any manner the rights of the Holders under this Supplemental Indenture, the Initial Indenture, the Notes or any Guarantee; provided, however, that no such supplemental indenture,
agreement or instrument shall, without the consent of the Holder of each Outstanding Note affected thereby: 
 (a) extend the
Stated Maturity of the principal of, or any installment of interest on, any Note, or reduce the principal amount thereof or the rate of interest thereon or any premium payable upon the redemption thereof, or change the coin or currency in which the
principal of any Note or any premium or the interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the redemption
date thereof); 
 (b) following the occurrence of a Change of Control Triggering Event, amend, change or modify the
obligation of the Company to make and consummate a Change of Control Offer in the event of a Change of Control Triggering Event in accordance with Section 3.2, including amending, changing or modifying any definitions with respect thereto; 

(c) reduce the percentage in principal amount of the Outstanding Notes, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for any waiver of compliance with certain provisions of this Supplemental Indenture or the Initial Indenture or certain defaults hereunder and their consequences provided for in
this Supplemental Indenture or the Initial Indenture or with respect to any Guarantee; 
 (d) modify any of the provisions of
this Section 8.2, Section 3.5 of this Supplemental Indenture, or Section 7.5 of the Initial Indenture, except to increase any such percentage or to provide that certain other provisions of this Supplemental Indenture or the Initial Indenture cannot
be modified or waived without the consent of the Holder of each Note affected thereby; 
 (e) except as otherwise permitted
under Article Ten of the Initial Indenture, consent to the assignment or transfer by the Company of any of its rights and obligations under this Supplemental Indenture or the Initial Indenture; or 

(f) change the currency of payment of principal, premium (if any) or interest on the Notes. 

  
 -27- 

 Upon the written request of the Company and each Guarantor, if any, accompanied by a copy of a
Certified Resolution authorizing the execution of any such supplemental indenture or Guarantee, and upon the filing with the Trustee of evidence of the consent of Holders as aforesaid, the Trustee shall join with the Company and each Guarantor in
the execution of such supplemental indenture or Guarantee. 
 It shall not be necessary for any act of Holders under this Section 8.2 to
approve the particular form of any proposed supplemental indenture or Guarantee or agreement or instrument relating to any Guarantee, but it shall be sufficient if such act shall approve the substance thereof. 

  
 -28- 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed by their respective officers hereunto duly authorized, all as of the day and year first written above. 
  

			
	CONSTELLATION BRANDS, INC.
		
	By:	 	 /s/ Oksana S. Dominach

		 	Name: Oksana S. Dominach
		 	Title:   Senior Vice President and Treasurer
	
	GUARANTORS
	
	ALCOFI INC.
	CONSTELLATION BEERS LTD.
	CONSTELLATION BRANDS BEACH HOLDINGS, INC.
	CONSTELLATION BRANDS SMO, LLC
	CONSTELLATION BRANDS U.S. OPERATIONS, INC.
	CONSTELLATION LEASING, LLC
	CONSTELLATION MARKETING SERVICES, INC.
	CONSTELLATION SERVICES LLC
	CONSTELLATION TRADING COMPANY, INC.
	CROWN IMPORTS LLC
	FRANCISCAN VINEYARDS, INC.
	ROBERT MONDAVI INVESTMENTS
	THE HOGUE CELLARS, LTD.
		
	By:	 	 /s/ Oksana S. Dominach

		 	Name: Oksana S. Dominach
		 	Title:   Vice President and Treasurer
	
	HOME BREW MART, INC.
		
	By:	 	 /s/ Oksana S. Dominach

		 	Name: Oksana S. Dominach
		 	Title:   Vice President and Assistant Treasurer

  
 -29- 

 
			
	MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
		
	By:	 	 /s/ Aaron G. McManus

		 	Name: Aaron G. McManus
		 	Title: Vice President

  
 -30- 

							
		 		 	 Exhibit A to
 Supplemental Indenture
	  	

 {Face of Note} 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A
DEPOSITORY OR A SUCCESSOR DEPOSITORY. TRANSFERS OF THIS NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTIONS 2.6 AND 2.13 OF THE INITIAL INDENTURE AND SECTION 2.8 OF THE SUPPLEMENTAL INDENTURE.1 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH NOTE 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.2 
  

 

	1 	Include this legend on any Global Security. 

	2 	Include this legend on any Global Security issued to Cede & Co. as nominee of The Depository Trust Company. 

  
 A-1 

 CONSTELLATION BRANDS, INC. 

 
  

3.700% SENIOR NOTE DUE 2026 
 CUSIP
NO. 21036P AQ1 
  

			
	No. [            ]	  	$[            ]

 CONSTELLATION BRANDS, INC., a Delaware corporation (herein called the “Company,” which term
includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered assigns, the principal sum of
[            ] United States Dollars on December 6, 2026, at the office or agency of the Company referred to below, and to pay interest thereon from December 6, 2016, or from the
most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on June 6 and December 6 of each year, commencing June 6, 2017 at the rate of 3.700% per annum, in United States Dollars, until
the principal hereof is paid or duly provided for. Interest shall be computed on the basis of a 360-day year comprised of twelve 30-day months. 

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the regular record date for such interest, which shall be May 21 or November 21 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so punctually paid, or duly provided for, and interest on such defaulted interest at the interest rate borne by the Notes, to the extent lawful, shall forthwith cease to be
payable to the Holder on such regular record date, and may be paid to the Person in whose name this Note (or one or more predecessor Notes) 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 Notes not less than 15 days prior to such special record date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Payment of the principal of, premium, if any, and interest on this Note will be made at the office or agency of the Company maintained for
that purpose, 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 payment of interest may be made at the option of the
Company, (i) in the case of a Global Security, by wire or book entry transfer to the Depository Trust Company or its nominee, or (ii) in all other cases, by check mailed to the address of the Person entitled thereto as such address shall
appear on the security register. 
 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place. 

  
 A-2 

 This Note is entitled to the benefits of Guarantees by each of the Guarantors of the punctual
payment when due of the Indenture Obligations made in favor of the Trustee for the benefit of the Holders. Reference is hereby made to Article Seven of the Supplemental Indenture and Article Fourteen of the Initial Indenture for a statement of the
respective rights, limitations of rights, duties and obligations under the Guarantees of each of the Guarantors. 
 Unless the certificate
of authentication hereon has been duly executed by the Trustee referred to on the reverse hereof or by the authenticating agent appointed as provided in the Initial Indenture by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose. 

  
 A-3 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by the manual or
facsimile signature of its authorized officer. 
 Dated: 
  

			
	CONSTELLATION BRANDS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-4 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the 3.700% Senior Notes due 2026 referred to in the within-mentioned Indenture. 

 

			
	As Trustee, MANUFACTURERS AND TRADERS TRUST COMPANY
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-5 

 {Reverse of Note} 

CONSTELLATION BRANDS, INC. 

3.700% SENIOR NOTE DUE 2026 

This Note is one of a duly authorized issue of Notes of the Company designated as its 3.700% Senior Notes due 2026 (herein called the
“Notes”), issued under an Indenture dated as of April 17, 2012, among the Company, the Guarantors and Manufacturers and Traders Trust Company (the “Trustee,” which term includes any successor Trustee under the
Indenture (as defined)) (the “Initial Indenture”), as supplemented by Supplemental Indenture No. 1 dated as of April 17, 2012 (the “First Supplemental Indenture”), Supplemental Indenture No. 2 dated
as of August 14, 2012 (the “Second Supplemental Indenture”), Supplemental Indenture No. 3 dated as of May 14, 2013 (the “Third Supplemental Indenture”), Supplemental Indenture No. 4 dated as of
May 14, 2013 (the “Fourth Supplemental Indenture”), Supplemental Indenture No. 5 dated as of June 7, 2013 (the “Fifth Supplemental Indenture”), Supplemental Indenture No. 6 dated as of
May 28, 2014 (the “Sixth Supplemental Indenture”), Supplemental Indenture No. 7 dated as of November 3, 2014 (the “Seventh Supplemental Indenture”), Supplemental Indenture No. 8 dated as of
November 3, 2014 (the “Eighth Supplemental Indenture”), Supplemental Indenture No. 9 dated as of December 4, 2015 (the “Ninth Supplemental Indenture”), Supplemental Indenture No. 10 dated as of
January 15, 2016 (the “Tenth Supplemental Indenture”) and Supplemental Indenture No. 11 dated as of December 6, 2016 (the “Supplemental Indenture” and, together with the Initial Indenture, the First
Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture, the Sixth Supplemental Indenture, the Seventh Supplemental Indenture, the Eighth
Supplemental Indenture, the Ninth Supplemental Indenture and the Tenth Supplemental Indenture, 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, obligations and immunities thereunder of the Company, the Guarantors, the Trustee and the Holders of the Notes, and of the terms upon which the Notes are, and are to be, authenticated and delivered. 

The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness on the Notes or (b) certain restrictive
covenants and related Defaults and Events of Default, in each case upon compliance with certain conditions set forth therein. 
 At any time
prior to September 6, 2026, the Company may redeem the Notes, in whole or in part, at any time or from time to time, at a redemption price equal to the greater of (i) 100% of the principal amount of such Notes to be redeemed and
(ii) the sum of the present values of the remaining scheduled payments of principal of and interest on the Notes to be redeemed (assuming for this purpose, that the Notes matured on September 6, 2026) (not including any portion of such
payments of interest accrued as of the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus 25 basis points, as determined by the Reference
Treasury Dealer, plus, in each case, accrued and unpaid interest on the Notes to, but excluding the redemption date. 

  
 A-6 

 On or after September 6, 2026, the Notes may be redeemed in whole or in part at any time or
in part from time to time, at the Company’s option, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, together with accrued and unpaid interest to but excluding the redemption date. 

Upon the occurrence of a Change of Control Triggering Event, each Holder may require the Company to repurchase all or a portion of such
Holder’s Notes (equal to $2,000 or an integral multiple of $1,000 in excess thereof), at a purchase price in cash equal to 101% of the principal amount thereof, together with accrued and unpaid interest, if any, to, but excluding, the date of
repurchase. 
 In the case of any redemption or repurchase of Notes in accordance with the Indenture, interest installments whose Stated
Maturity is on or prior to the redemption date will be available to the Holders of such Notes of record as of the close of business on the relevant regular record date referred to on the face hereof. Notes (or portions thereof) for whose redemption
and payment provision is made in accordance with the Indenture shall cease to bear interest from and after the date of redemption. 
 In the
event of redemption or repurchase of this Note in accordance with the Indenture in part only, a new Note or Notes for the unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation hereof. 

If an Event of Default shall occur and be continuing, the principal amount of all the Notes may be declared due and payable in the manner and
with the effect provided in the Indenture. 
 The Indenture permits, with certain exceptions (including certain amendments permitted without
the consent of any Holders) as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Guarantors and the Holders under the Indenture and the Notes and the Guarantees at any
time by the Company and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding. The Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to waive compliance by the Company and the Guarantors with certain provisions of the Indenture and the Notes and the
Guarantees and their consequences. Any such consent or waiver by or on behalf of the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. 
 No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, any Guarantor or any other obligor on the Notes (in the event such Guarantor or other obligor is obligated to
make payments in respect of the Notes), which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Note at the times, place, and rate, and in the coin or currency, herein prescribed. 

  
 A-7 

 If this Note is in certificated form, then as provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note is registrable on the security register of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company maintained for such purpose in the City
of New York or at such other office or agency of the Company as may be maintained for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the security registrar designated in
accordance with Section 4.2 of the Initial Indenture duly executed by, the Holder hereof or its attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees. 
 If this Note is a Global Security, it is exchangeable for a Note in
certificated form as provided in the Indenture and in accordance with the rules and procedures of the Trustee and the Depositary. In addition, certificated securities shall be transferred to all beneficial holders in exchange for their beneficial
interests in the Global Security if (x) the Depositary notifies the Company that it is unwilling or unable to continue as depository for the Global Security and a successor depository is not appointed by the Company within 90 days, (y) the
Company decides to discontinue use of the system of book-entry-only transfers through the Depository (or a successor securities depository) or (z) there shall have occurred and be continuing an Event of Default and any security registrar
designated in accordance with Section 4.2 of the Initial Indenture has received a request from the Depositary. Upon any such issuance, the Trustee is required to register such certificated Notes in the name of, and cause the same to be
delivered to, such Person or Persons (or the nominee of any thereof). 
 The Notes in certificated form are issuable only in registered form
without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof. 
 No service charge shall be made for any
registration of transfer or exchange of Notes, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to and at the time of due presentment of this Note for registration of transfer, the Company, any Guarantor, the Trustee and any agent
of the Company, any Guarantor or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Company, the Trustee nor any agent shall be affected
by notice to the contrary. 
 THIS NOTE 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. 
 All terms used in this Note which are defined in the Indenture and not otherwise defined
herein shall have the meanings assigned to them in the Indenture. 

  
 A-8 

 FORM OF TRANSFER NOTICE 

I or we assign and transfer this Note to: 
 Please insert social
security or other identifying number of assignee 
  
  

 
  
  

 
 Print or type name, address and zip code of assignee
and irrevocably appoint                      

(Agent), to transfer this Note on the books of the Company. The Agent may substitute another to act for him. 

 

									
	Dated	 	  
	 		 	Signed	 	  

 (Sign exactly as name appears on the other side of this Note) 

{Signature must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with membership in
an approved guarantee medallion program pursuant to Securities and Exchange Commission Rule 17 Ad-15} 

  
 A-9 

 Exhibit B to 

Supplemental Indenture 
 GUARANTEES

 For value received, each of the undersigned hereby unconditionally guarantees, jointly and severally, to the Holder of this Note the
payment of principal of, premium, if any, and interest on this Note upon which these Guarantees are endorsed in the amounts and at the time when due and payable whether by declaration thereof, or otherwise, and interest on the overdue principal and
interest, if any, of this Note, if lawful, and the payment or performance of all other obligations of the Company under the Indenture or the Notes, to the Holder of this Note and the Trustee, all in accordance with and subject to the terms and
limitations of this Note and Article Fourteen of the Initial Indenture. These Guarantees will not become effective until the Trustee duly executes the certificate of authentication on this Note. 

 

					
	Dated:	 	  
	  	

  

					
	GUARANTORS
	
	ALCOFI INC.
	CONSTELLATION BEERS LTD.
	CONSTELLATION BRANDS BEACH HOLDINGS, INC.
	CONSTELLATION BRANDS SMO, LLC
	CONSTELLATION BRANDS U.S. OPERATIONS, INC. 
	CONSTELLATION LEASING, LLC
	CONSTELLATION MARKETING SERVICES, INC.
	CONSTELLATION SERVICES LLC
	CONSTELLATION TRADING COMPANY, INC.
	CROWN IMPORTS LLC
	FRANCISCAN VINEYARDS, INC.
	ROBERT MONDAVI INVESTMENTS
	THE HOGUE CELLARS, LTD.
		
	By:	 	  

		 	Name:	 	Oksana S. Dominach
		 	Title:	 	Vice President and Treasurer
	
	HOME BREW MART, INC.
		
	By:	 	  

		 	Name:	 	Oksana S. Dominach
		 	Title:	 	Vice President and Assistant Treasurer

  
 B-1Exhibit 10.1

 

EXECUTION VERSION

 

 

 

AT THE MARKET OFFERING AGREEMENT

 

 

	 	December 2, 2016

 

 

Ladies
and Gentlemen:

       

Trinity Place Holdings
Inc., a corporation organized under the laws of Delaware (the “Company”), confirms its agreement (this “Agreement”)
with Craig-Hallum Capital Group LLC (the “Manager”) as follows:

 

1.       Definitions.
The terms that follow, when used in this Agreement and any Terms Agreement, shall have the meanings indicated.

 

“Accountants”
  shall have the meaning ascribed to such term in Section 4(m).

 

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

 

“Action”
shall have the meaning ascribed to such term in Section 3(q).

 

“Affiliate”
shall have the meaning ascribed to such term in Section 3(p).

 

“Applicable
Time” shall mean, with respect to any Shares, the time of sale of such Shares pursuant to this Agreement or any relevant
Terms Agreement.

 

“Base
Prospectus” shall mean the base prospectus contained in the Registration Statement at the Execution Time.

 

“Board”
shall have the meaning ascribed to such term in Section 2(b)(iii).

 

“Broker
Fee” shall have the meaning ascribed to such term in Section 2(b)(v).

 

“Business
Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions
or trust companies are authorized or obligated by law to close in New York City.

 

“Commission”
shall mean the United States Securities and Exchange Commission.

 

“Common
Stock” shall have the meaning ascribed to such term in Section 2.

 

     

     

    

 

“Common
Stock Equivalents” shall have the meaning ascribed to such term in Section 3(g).

 

“Company
Counsel” shall have the meaning ascribed to such term in Section 4(l).

 

“DTC”
shall have the meaning ascribed to such term in Section 2(b)(vii).

 

“Effective
Date” shall mean each date and time that the Registration Statement and any post-effective amendment or amendments thereto
became or becomes effective.

 

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

 

“Execution
Time” shall mean the date and time that this Agreement is executed and delivered by the parties hereto.

 

“Filing
Date” shall have the meaning ascribed to such term in Section 4(w).

 

“Free
Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3(n).

 

“Incorporated
Documents” shall mean the documents or portions thereof filed with the Commission on or before the Effective Date that
are incorporated by reference in the Registration Statement or the Prospectus and any documents or portions thereof filed with
the Commission after the Effective Date that are deemed to be incorporated by reference in the Registration Statement or the Prospectus.

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3(v).

 

“Issuer
Free Writing Prospectus” shall mean an issuer free writing prospectus, as defined in Rule 433.

 

“Losses”
shall have the meaning ascribed to such term in Section 7(d).

 

“Material
Adverse Effect” shall have the meaning ascribed to such term in Section 3(b).

 

    	 	2	 

     

    

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3(t).

 

“Net
Proceeds” shall have the meaning ascribed to such term in Section 2(b)(v).

 

“Permitted
Free Writing Prospectus” shall have the meaning ascribed to such term in Section 4(g).

 

“Placement”
shall have the meaning ascribed to such term in Section 2(c).

 

“Proceeding”
shall have the meaning ascribed to such term in Section 3(b).

 

“Prospectus”
shall mean the Base Prospectus, as supplemented by the most recently filed Prospectus Supplement (if any).

 

“Prospectus
Supplement” shall mean each prospectus supplement relating to the Shares prepared and filed pursuant to Rule 424(b)
from time to time.

 

“Registration
Statement” shall mean the shelf registration statement (File Number 333-214482) on Form S-3, including exhibits
and financial statements and any prospectus supplement relating to the Shares that is filed with the Commission pursuant to Rule 424(b)
and deemed part of such registration statement pursuant to Rule 430B, as amended on each Effective Date and, in the event
any post-effective amendment thereto becomes effective, shall also mean such registration statement as so amended.

 

“Representation
Date” shall have the meaning ascribed to such term in Section 4(k).

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3(e).

 

“Rule 158”,
“Rule 163”, “Rule 164”, “Rule 172”, “Rule 173”,
“Rule 405”, “Rule 415”, “Rule 424”, “Rule 430B”
and “Rule 433” refer to such rules under the Act.

 

“Sales
Notice” shall have the meaning ascribed to such term in Section 2(b)(i).

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3(m).

 

“Settlement
Date” shall have the meaning ascribed to such term in Section 2(b)(vii).

 

    	 	3	 

     

    

 

“Subsidiary”
shall have the meaning ascribed to such term in Section 3(a).

 

“Terms
Agreement” shall have the meaning ascribed to such term in Section 2(a).

 

“Time
of Delivery” shall have the meaning ascribed to such term in Section 2(c).

 

“Trading
Market” means NYSE MKT LLC.

 

2.       Sale
and Delivery of Shares. The Company proposes to issue and sell through or to the Manager, as sales agent and/or principal,
up to $12,000,000 of shares (the “Shares”) of the Company’s common stock, $0.01 par value (“Common
Stock”), from time to time during the term of this Agreement and on the terms set forth herein; provided, however,
that in no event shall the Company issue or sell through or to the Manager a number of Shares that (a) exceeds the number or
dollar amount of shares of Common Stock registered on the Registration Statement, pursuant to which the offering is being made,
(b) exceeds the number of authorized but unissued shares of Common Stock or (c) would cause the Company or the offering of the
Shares to not satisfy the eligibility and transaction requirements for use of Form S-3 (including, if applicable, General Instruction
I.B.6 of Registration Statement on Form S-3 (the lesser of (a), (b) and (c), the “Maximum Amount”)). Notwithstanding
anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in this Section
2 on the number and aggregate sales price of Shares issued and sold under this Agreement shall be the sole responsibility of the
Company and that Manager shall have no obligation in connection with such compliance.

 

(a)       Appointment
of Manager as Selling Agent; Term Agreement. For purposes of selling the Shares through the Manager, the Company hereby appoints
the Manager as exclusive agent of the Company for the purpose of selling the Shares of the Company pursuant to this Agreement and
the Manager agrees to use its commercially reasonable efforts to sell the Shares on the terms and subject to the conditions stated
herein. The Company agrees that, whenever it determines to sell the Shares directly to the Manager as principal, it will enter
into a separate agreement (each, a “Terms Agreement”) in substantially the form of Annex I hereto, relating
to such sale in accordance with Section 2 of this Agreement.

 

(b)       Agent
Sales. Subject to the terms and conditions and in reliance upon the representations and warranties herein set forth, the Company
will issue and agrees to sell Shares from time to time through the Manager, acting as sales agent, and the Manager agrees to use
its commercially reasonable efforts to sell the Shares, as sales agent for the Company, on the following terms:

 

    	 	4	 

     

    

 

(i)       The
Shares are to be sold on a daily basis or otherwise as shall be agreed to by the Company and the Manager on any day that (A) is
a trading day for the Trading Market, (B) the Company has instructed the Manager by telephone (confirmed promptly by electronic
mail) to make such sales (“Sales Notice”) and (C) the Company has satisfied its obligations under Section 6
of this Agreement, provided that the deliveries required under Section 6 shall only be required to be made on the Execution Time
and on a Representation Date on which a material amendment to the Registration Statement or Prospectus is made or the Company files
its Annual Report on Form 10-K or a material amendment thereto under the Exchange Act. The Company will designate the maximum amount
of the Shares to be sold by the Manager daily (subject to the limitations set forth in Section 2(d)) and the minimum price per
Share at which such Shares may be sold. Subject to the terms and conditions hereof, the Manager shall use its commercially reasonable
efforts to sell on a particular day all of the Shares designated for the sale by the Company on such day. The gross sales price
of the Shares sold under this Section 2(b) shall be the market price for shares of the Company’s Common Stock sold by
the Manager under this Section 2(b) on the Trading Market at the time of sale of such Shares.

 

(ii)       The
Company acknowledges and agrees that (A) there can be no assurance that the Manager will be successful in selling the Shares,
(B) the Manager will incur no liability or obligation to the Company or any other person or entity if it does not sell the
Shares for any reason other than a failure by the Manager to use its commercially reasonable efforts consistent with its normal
trading and sales practices and applicable law and regulations to sell such Shares as required under this Agreement, and (C) the
Manager shall be under no obligation to purchase Shares on a principal basis pursuant to this Agreement, except as otherwise specifically
agreed by the Manager and the Company pursuant to a Terms Agreement.

 

(iii)       The
Company shall not authorize the issuance and sale of, and the Manager shall not be obligated to use its commercially reasonable
efforts to sell, any Share at a price lower than the minimum price therefor designated from time to time by the Company’s
Board of Directors (the “Board”), or a duly authorized committee thereof, or such duly authorized officers of
the Company, and notified to the Manager in writing. The Company or the Manager may, upon notice to the other party hereto by telephone
(confirmed promptly by electronic mail), suspend the offering of the Shares for any reason and at any time; provided, however,
that such suspension or termination shall not affect or impair the parties’ respective obligations with respect to the Shares
sold hereunder prior to the giving of such notice.

 

    	 	5	 

     

    

 

(iv)       The
Manager may sell Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415
under the Act, including without limitation sales made directly on the Trading Market, on any other existing trading market for
the Common Stock or to or through a market maker. The Manager may also sell Shares in privately negotiated transactions, provided
that the Manager receives the Company’s prior written approval for any sales in privately negotiated transactions and if
so provided in the “Plan of Distribution” section of the Prospectus Supplement.

 

(v)       The
compensation to the Manager for sales of the Shares under this Section 2(b) shall be a placement fee of 2.5% of the gross sales
price of the Shares sold pursuant to this Section 2(b) (“Broker Fee”). The foregoing rate of compensation shall
not apply when the Manager acts as principal, in which case the Company may sell Shares to the Manager as principal at a price
agreed upon at the relevant Applicable Time pursuant to a Terms Agreement. The remaining proceeds, after deduction of the Broker
Fee and deduction for any transaction fees imposed by any clearing firm, execution broker, or governmental or self-regulatory organization
in respect of such sales, shall constitute the net proceeds to the Company for such Shares (the “Net Proceeds”).

 

(vi)       The
Manager shall provide written confirmation (which may be by facsimile or electronic mail) to the Company following the close of
trading on the Trading Market each day in which the Shares are sold under this Section 2(b) setting forth the number of the Shares
sold on such day, the aggregate gross sales proceeds and the Net Proceeds to the Company, and the compensation payable by the Company
to the Manager with respect to such sales.

 

(vii)       Upon
delivery of a Sales Notice, the Company shall issue and deliver the maximum number of Shares to be sold pursuant to the Sales Notice
to the Manager’s account at The Depository Trust Company (“DTC”) via the DWAC system, which Shares shall
be deposited by the Manager in the Company’s account with the Manager. The Manager shall have no obligation to attempt to
sell the Shares until the Company has delivered the Shares to the Manager. Settlement for sales of the Shares pursuant to this
Section 2(b) will occur at 10:00 a.m. (New York City time), or at such time as the Company and the Manager may mutually agree,
on the third Business Day following delivery of the Shares issued pursuant to the Sale Notice (each such day, a “Settlement
Date”). On each Settlement Date, the Manager shall deliver the Net Proceeds from the sale of the Shares to the Company.
If on any Settlement Date not all Shares were sold as issued pursuant to the Sales Notice, then, at the election of and upon notice
from the Company, the Shares shall be applied to a future Settlement Date or returned to the Company.

 

    	 	6	 

     

    

 

(viii)       At
each Applicable Time, Settlement Date, Representation Date and Filing Date, the Company shall be deemed to have affirmed each representation
and warranty contained in this Agreement as if such representation and warranty were made as of such date, modified as necessary
to relate to the Registration Statement and the Prospectus as amended as of such date. Any obligation of the Manager to use its
commercially reasonable efforts to sell the Shares on behalf of the Company shall be subject to the continuing accuracy of the
representations and warranties of the Company herein, to the performance by the Company of its obligations hereunder and to the
continuing satisfaction of the additional conditions specified in Section 6 of this Agreement.

 

(c)       Term
Sales. If the Company wishes to sell the Shares pursuant to this Agreement but other than as set forth in Section 2(b) of this
Agreement (each, a “Placement”), it will notify the Manager of the proposed terms of such Placement. If the
Manager, acting as principal, wishes to accept such proposed terms (which it may decline to do for any reason in its sole discretion)
or, following discussions with the Company wishes to accept amended terms, the Manager and the Company will enter into a Terms
Agreement setting forth the terms of such Placement. The terms set forth in a Terms Agreement will not be binding on the Company
or the Manager unless and until the Company and the Manager have each executed such Terms Agreement accepting all of the terms
of such Terms Agreement. In the event of a conflict between the terms of this Agreement and the terms of a Terms Agreement, the
terms of such Terms Agreement will control. A Terms Agreement may also specify certain provisions relating to the reoffering of
such Shares by the Manager. The commitment of the Manager to purchase the Shares pursuant to any Terms Agreement shall be deemed
to have been made on the basis of the representations and warranties of the Company herein contained and shall be subject to the
terms and conditions herein set forth. Each Terms Agreement shall specify the number of the Shares to be purchased by the Manager
pursuant thereto, the price to be paid to the Company for such Shares, any provisions relating to rights of, and default by, underwriters
acting together with the Manager in the reoffering of the Shares, and the time and date (each such time and date being referred
to herein as a “Time of Delivery”) and place of delivery of and payment for such Shares. Such Terms Agreement
shall also specify any requirements for opinions of counsel, accountants’ letters and officers’ certificates pursuant
to Section 6 of this Agreement and any other information or documents required by the Manager.

 

(d)       Maximum
Number of Shares. Under no circumstances shall the Company cause or request the offer or sale of any Shares if, after giving
effect to the sale of such Shares, the aggregate amount of Shares sold pursuant to this Agreement would exceed the lesser of (A)
together with all sales of Shares under this Agreement, the Maximum Amount, (B) the amount available for offer and sale under the
then currently effective Registration Statement and (C) the amount authorized from time to time to be issued and sold under this
Agreement by the Company’s Board, a duly authorized committee thereof or a duly authorized executive committee, and notified
to the Manager in writing. Under no circumstances shall the Company cause or request the offer or sale of any Shares pursuant to
this Agreement at a price lower than the minimum price authorized from time to time by the Company’s Board, a duly authorized
committee thereof or a duly authorized executive committee, and notified to the Manager in writing. Further, under no circumstances
shall the Company cause or permit the aggregate offering amount of Shares sold pursuant to this Agreement to exceed the Maximum
Amount.

 

    	 	7	 

     

    

 

(e)       Regulation
M Notice. Unless the exceptive provisions set forth in Rule 101(c)(1) of Regulation M under the Exchange Act are
satisfied with respect to the Shares, the Company shall give the Manager at least one Business Day’s prior notice of its
intent to sell any Shares in order to allow the Manager time to comply with Regulation M.

 

3.       Representations
and Warranties. The Company represents and warrants to, and agrees with, the Manager at the Execution Time and on each such
time the following representations and warranties are repeated or deemed to be made pursuant to this Agreement, as set forth below
or in the Registration Statement, the Prospectus or the Incorporated Documents.

 

(a)       Subsidiaries.
All of the direct and indirect subsidiaries (individually, a “Subsidiary”) of the Company are set forth on Exhibit
21.1 to the Company’s most recent Annual Report on Form 10-K filed with the Commission (other than TPH 223 N 8th
Investor LLC, a Delaware limited liability company, 223 North 8th Street Owner, LLC, a Delaware limited liability company
and Pacolet Trinity 223 Partners, LLC, a Delaware limited liability company). The Company owns, directly or indirectly, all of
the capital stock or other equity interests of each Subsidiary free and clear of any “Liens” (which for purposes
of this Agreement shall mean a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other
restriction), and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

(b)       Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the
requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither
the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified
or in good standing, as the case may be, could not reasonably be expected to result in (i) a material adverse effect on the legality,
validity or enforceability of this Agreement, (ii) a material adverse change in the results of operations, assets, business, or
condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, from that set forth in the Registration
Statement, the Prospectus or the Incorporated Documents, or (iii) a material adverse effect on the Company’s ability to perform
in any material respect on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a “Material
Adverse Effect”) and no “Proceeding” (which for purposes of this Agreement shall mean any action,
claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition),
whether commenced or threatened) has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke,
limit or curtail such power and authority or qualification.

 

    	 	8	 

     

    

 

(c)       Authorization
and Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement
by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board or its stockholders in connection herewith
other than in connection with the Required Approvals. This Agreement has been duly executed and delivered by the Company and constitutes
the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.

 

(d)       No
Conflicts. The execution, delivery and performance of this Agreement by the Company, the issuance and sale of the Shares and
the consummation by the Company of the other transactions contemplated herein do not and will not (i) conflict with or violate
any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational
or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would
become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary,
or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt) to which the Company
or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii)
subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal
and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected,
except in the case of each of clauses (ii) and (iii), such as could not reasonably be expected to result in a Material Adverse
Effect.

 

    	 	9	 

     

    

 

(e)       Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
“Person” (defined as an individual or corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity
of any kind, including the Trading Market) in connection with the execution, delivery and performance by the Company of this Agreement,
other than (i) the filings required by this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii)
the filing of application(s) to and approval by the Trading Market for the listing of the Shares for trading thereon in the time
and manner required thereby, and (iv) such filings as are required to be made under applicable state securities laws and the rules
and regulations of the Financial Industry Regulatory Authority, Inc. (“FINRA”) (collectively, the “Required
Approvals”).

 

(f)       Issuance
of Shares. The Shares are duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and
validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company, other than restrictions set forth
in the Company’s charter documents. The Company has reserved from its duly authorized capital stock the maximum number of
shares of Common Stock issuable pursuant to this Agreement. The Shares are being issued pursuant to the Registration Statement
and the issuance by the Company of the Shares has been registered under the Act and all of the Shares are freely transferable and
tradable by the purchasers thereof without restriction (other than any restrictions arising solely from the status of, or an act
or omission of such a purchaser). The “Plan of Distribution” section within the Registration Statement permits
the issuance and sale of the Shares as contemplated by this Agreement. Upon receipt of the Shares, the purchasers of such Shares
will have good and marketable title to such Shares and the Shares will be freely tradable on the Trading Market (subject to any
restrictions arising solely from the status of, or an act or omission of such a purchaser).

 

(g)       Capitalization.
The capitalization of the Company is as set forth in the SEC Reports. The Company has not issued any capital stock since its most
recently filed SEC Report, other than pursuant to the Company’s equity incentive plan or other compensatory arrangements
(“Equity Plans”) and pursuant to the conversion or exercise of securities exercisable, exchangeable or convertible
into Common Stock (“Common Stock Equivalents”). No Person has any right of first refusal, preemptive right,
right of participation, or any similar right to participate in the transactions contemplated by this Agreement. Except (i) pursuant
to the Company’s Equity Plans, (ii) pursuant to agreements or instruments described in or filed as exhibits to Incorporated
Documents or (iii) as disclosed in the SEC Reports, there are no outstanding options, warrants, script rights to subscribe to,
calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common
Stock or Common Stock Equivalents. The issuance and sale of the Shares will not obligate the Company to issue shares of Common
Stock or other securities to any Person (other than the purchasers of the Shares) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. All of the outstanding
shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all
federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities. Other than as described in the SEC Reports, there are no stockholders agreements,
voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party
or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

    	 	10	 

     

    

 

(h)       Registration
Statement. The Company meets the requirements for use of Form S-3 under the Act and has prepared and filed with the Commission
the Registration Statement, including a related Base Prospectus, for registration under the Act of the offering and sale of the
Shares. Such Registration Statement is effective and available for the offer and sale of the Shares as of the date hereof. As filed,
the Base Prospectus contains all information required by the Act and the rules thereunder, and, except to the extent the Manager
shall agree in writing to a modification, shall be in all substantive respects in the form furnished to the Manager prior to the
Execution Time or prior to any such time this representation is repeated or deemed to be made. The Registration Statement, at the
Execution Time, each such time this representation is repeated or deemed to be made, and at all times during which a prospectus
is required by the Act to be delivered (whether physically or through compliance with Rule 172, 173 or any similar rule) in
connection with any offer or sale of the Shares, meets the requirements set forth in Rule 415(a)(1)(x). The initial Effective
Date of the Registration Statement was not earlier than the date that is three years before the Execution Time.

 

(i)       Accuracy
of Incorporated Documents. The Incorporated Documents, when they were filed with the Commission, conformed in all material
respects to the requirements of the Exchange Act and the rules thereunder, and none of the Incorporated Documents, when they were
filed with the Commission, contained any untrue statement of a material fact or omitted to state a material fact necessary to make
the statements therein, in light of the circumstances under which they were made not misleading; and any further documents so filed
and incorporated by reference in the Registration Statement or the Prospectus, when such documents are filed with the Commission,
will conform in all material respects to the requirements of the Exchange Act and the rules thereunder, as applicable, and will
not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading; provided, however, that this representation shall not
apply to any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and
in conformity with written information furnished to the Company by the Manager specifically for inclusion therein.

 

(j)       Ineligible
Issuer. (i) At the earliest time after the filing of the Registration Statement that the Company or another offering participant
made a bona fide offer (within the meaning of Rule 164(h)(2)) of the Shares and (ii) as of the Execution Time and on
each such time this representation is repeated or deemed to be made (with such date being used as the determination date for purposes
of this clause (ii)), the Company was not and is not an Ineligible Issuer (as defined in Rule 405), without taking account
of any determination by the Commission pursuant to Rule 405 that it is not necessary that the Company be considered an Ineligible
Issuer.

 

(k)       Free
Writing Prospectus. The Company is eligible to use Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus does
not or will not include any information the substance of which conflicts with the information contained in the Registration Statement,
including any Incorporated Documents and any prospectus supplement deemed to be a part thereof that has not been superseded or
modified; and each Issuer Free Writing Prospectus does not or will not contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. The foregoing sentence does not apply to statements in or omissions from any Issuer Free Writing Prospectus
based upon and in conformity with written information furnished to the Company by the Manager specifically for use therein. Any
Issuer Free Writing Prospectus that the Company is required to file pursuant to Rule 433(d) has been, or will be, filed with the
Commission in accordance with the requirements of the Act and the rules thereunder. Each Issuer Free Writing Prospectus that the
Company has filed, or is required to file, pursuant to Rule 433(d) or that was prepared by or behalf of or used by the Company
complies or will comply in all material respects with the requirements of the Act and the rules thereunder. The Company will not,
without the prior consent of the Manager, prepare, use or refer to, any Issuer Free Writing Prospectuses.

 

    	 	11	 

     

    

 

(l)       Proceedings
Related to Registration Statement. The Registration Statement is not the subject of a pending proceeding or examination under
Section 8(d) or 8(e) of the Act, and the Company is not the subject of a pending proceeding under Section 8A of the Act
in connection with the offering of the Shares. The Company has not received any notice that the Commission has issued or intends
to issue a stop-order with respect to the Registration Statement or that the Commission otherwise has suspended or withdrawn the
effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened in writing to do so.

 

(m)       SEC
Reports. The Company has complied in all material respects with requirements to file all reports, schedules, forms, statements
and other documents required to be filed by it under the Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law to file such material)
(the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred
to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and
has filed any such SEC Reports prior to the expiration of any such extension.

 

(n)       Financial
Statements. The consolidated financial statements incorporated by reference in the Registration Statement, the Prospectus or
the Incorporated Documents and any amendments thereof or supplements thereto comply in all material respects with applicable accounting
requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing or as amended
or corrected in a subsequent filing. Such financial statements have been prepared in accordance with United States generally accepted
accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise
specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all
footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated
subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(o)       
Accountants. The Company’s accountants are BDO USA, LLP. To the knowledge of the Company, such accountants, who the
Company expects will express their opinion with respect to the financial statements to be included in the Company’s next
Annual Report on Form 10-K, are a registered public accounting firm as required by the Act.

 

    	 	12	 

     

    

 

(p)       Material
Adverse Events. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically
disclosed in a subsequent SEC Report or Prospectus Supplement filed prior to the date hereof, (i) there has been no event, occurrence
or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not
incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary
course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered
its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its
stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company
has not issued any equity securities to any officer, director or “Affiliate” (defined as any Person that, directly
or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such
terms are used in and construed under Rule 144 under the Act), except pursuant to existing Company Equity Plans or pursuant to
previously issued Common Stock Equivalents. The Company does not have pending before the Commission any request for confidential
treatment of information. Except for the issuance of Shares as contemplated by this Agreement, no event, liability or development
has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or
financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation
is deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is deemed
made.

 

(q)       Litigation.
There is no action, suit, inquiry, notice of violation, Proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of this Agreement or the Shares or (ii) could,
if there were an unfavorable decision, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any
Subsidiary, nor, to the knowledge of the Company, any director or officer thereof, is or has been the subject of any Action involving
a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not
been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving
the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other
order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act
or the Act.

 

    	 	13	 

     

    

 

(r)       Labor
Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company, and neither the Company nor
any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their
relationships with their employees are good. No executive officer, to the knowledge of the Company, is, or is now expected to be,
in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement
or non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each
such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing
matters. The Company and its Subsidiaries are in compliance with all applicable U.S. federal, state, local and foreign laws and
regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where
the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

(s)       No
Existing Defaults. Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred
that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of
its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court,
arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority,
including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational
health and safety, product quality and safety and employment and labor matters, except in each case as could not reasonably be
expected to result in a Material Adverse Effect.

 

(t)       Regulatory
Permits. To the Company’s knowledge, the Company and the Subsidiaries possess all certificates, authorizations and permits
issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses
as described in the Registration Statement or the Prospectus, except where the failure to possess such permits could not reasonably
be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary
has received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

    	 	14	 

     

    

 

(u)       Title
to Assets. The Subsidiaries have good title in fee simple to all real property owned by them that is material to the business
of the Company and the Subsidiaries and good title in all personal property owned by the Company and the Subsidiaries, respectively,
that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens
as do not materially adversely affect the value of such property and do not materially interfere with the use made and proposed
to be made of such property by the Company and the Subsidiaries, Liens pursuant to debt documents described in the SEC Reports
and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties.
Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting
and enforceable leases of which the Company and the Subsidiaries are in compliance, except where such non-compliance would not
reasonably be expected to have a Material Adverse Effect.

 

(v)       Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar intellectual property
rights necessary or material for use in connection with their respective businesses as described in the Registration Statement
or the Prospectus and which the failure to so have could reasonably be expected to have a Material Adverse Effect (collectively,
the “Intellectual Property Rights”). Neither the Company nor any Subsidiary has received, since the date of
the latest audited financial statements included within the SEC Reports, a notice (written or otherwise) that the Intellectual
Property Rights violate or infringe upon the rights of any Person, except as would not have a Material Adverse Effect. To the knowledge
of the Company, all such Intellectual Property Rights are enforceable (other than patent and trademark applications) and there
is no existing infringement by another Person of any of the Intellectual Property Rights, except as could not have or reasonably
be expected to not have a Material Adverse Effect. The Company and its Subsidiaries have taken reasonable security measures to
protect the secrecy, confidentiality and value of all of their Intellectual Property Rights, except where failure to do so could
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(w)       Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary for companies of similar size as the Company in the businesses in which the Company
and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage. To the knowledge of
the Company, such insurance contracts and policies are accurate and complete. Neither the Company nor any Subsidiary has any reason
to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

 

    	 	15	 

     

    

 

(x)       Affiliate
Transactions. Except as set forth in the Registration Statement or the Prospectus, none of the officers or directors of the
Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with
the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner,
in each case in excess of $120,000, other than (i) for payment of salary or consulting or directors’ fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) for other employee benefits, including stock incentive
agreements under any Company Equity Plans.

 

(y)       Sarbanes
Oxley Compliance. Except as disclosed in the Registration Statement or the Prospectus, the Company is in material compliance
with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Effective Date.

 

(z)       Finder’s
Fees. Other than payments to be made to the Manager, no brokerage or finder’s fees or commissions are or will be payable
by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by this Agreement. The Manager shall have no obligation with respect to any fees
or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be
due in connection with the transactions contemplated by this Agreement.

 

(aa)No
Other Sales Agency Agreement. The Company has not entered into any other sales agency agreements or other similar arrangements
with any agent or any other representative in respect of at the market offerings of the Shares.

 

(bb)Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any
of the Shares or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities
of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Manager in connection with the placement
of the Shares.

 

(cc)Listing
and Maintenance Requirements. The issuance and sale of the Shares as contemplated in this Agreement does not contravene the
rules and regulations of the Trading Market. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating
terminating such registration. Except as disclosed in the Registration Statement or the Prospectus, the Company has not, in the
12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or
quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market.

 

    	 	16	 

     

    

 

(dd)Application
of Takeover Protections. Except as set forth in the Registration Statement or the Prospectus, the Company and its Board have
taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s Certificate
of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to
the purchasers of the Shares.

 

(ee)Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not
be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
The Company currently intends to conduct its business in a manner so that it will not become subject to the Investment Company
Act of 1940, as amended.

 

(ff)Solvency.
Based on the financial condition of the Company as of the Effective Date, (i) the Company’s fair saleable value of its assets
exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital
to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, and projected capital requirements and capital availability thereof,
and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all
of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect
of its debt when such amounts are required to be paid. Within one year of the Effective Date, the Company does not intend to incur
debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on
or in respect of its debt). The SEC Reports set forth as of the dates thereof all outstanding secured and unsecured Indebtedness
of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement,
“Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of $50,000 (other
than accrued liabilities and trade accounts payable incurred in the ordinary course of business), (b) all material guaranties,
endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected
in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit
or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess
of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default
with respect to any Indebtedness.

 

    	 	17	 

     

    

 

(gg)Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and each Subsidiary has filed all necessary United States federal, and state income and all
foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge
of a tax deficiency which has been asserted or threatened against the Company.

 

(hh)Reserved.

 

(ii)       Foreign
Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of
the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful
expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials
or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully
any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation
of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(jj)FINRA
Member Shareholders. There are no affiliations with any FINRA member firm among the Company’s officers, directors or,
to the actual knowledge of the Company without investigation, any five percent (5%) or greater stockholder of the Company, except
as set forth in the Registration Statement or the Prospectus.

 

4.       Agreements.
The Company agrees with the Manager that:

 

(a)       Right
to Review Amendments and Supplements to Registration Statement and Prospectus. During any period when the delivery of a prospectus
relating to the Shares is required (including in circumstances where such requirement may be satisfied pursuant to Rule 172,
173 or any similar rule) to be delivered under the Act in connection with the offering or the sale of Shares, the Company will
not file any amendment to the Registration Statement or supplement relating to the Shares (including any Prospectus Supplement
relating to the Shares) to the Base Prospectus unless the Company has furnished to the Manager a copy for its review prior to filing
and will not file any such proposed amendment or supplement to which the Manager reasonably objects. The Company has completed
the Prospectus, in a form approved by the Manager, and filed such Prospectus, as amended at the Execution Time, with the Commission
pursuant to the applicable paragraph of Rule 424(b) by the Execution Time and will cause any supplement to the Prospectus
to be completed, in a form approved by the Manager, and will file such supplement with the Commission pursuant to the applicable
paragraph of Rule 424(b) within the time period prescribed thereby and will provide evidence reasonably satisfactory to the
Manager of such timely filing. The Company will promptly advise the Manager (i) when the Prospectus, and any supplement thereto,
shall have been filed (if required) with the Commission pursuant to Rule 424(b), (ii) when, during any period when the
delivery of a prospectus (whether physically or through compliance with Rule 172, Rule 173 or any similar rule) is required
under the Act in connection with the offering or sale of the Shares, any amendment to the Registration Statement shall have been
filed or become effective (other than any annual report of the Company filed pursuant to Section 13(a) or 15(d) of the Exchange
Act), (iii) of any request by the Commission or its staff for any amendment of the Registration Statement, or any Rule 462(b)
Registration Statement, or for any supplement to the Prospectus or for any additional information, (iv) of the issuance by
the Commission of any stop order suspending the effectiveness of the Registration Statement or of any notice objecting to its use
or the institution or threatening of any proceeding for that purpose and (v) of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Shares for sale in any jurisdiction or the institution or threatening
of any proceeding for such purpose. The Company will use its commercially reasonable efforts to prevent the issuance of any such
stop order or the occurrence of any such suspension or objection to the use of the Registration Statement and, upon such issuance,
occurrence or notice of objection, to obtain as soon as possible the withdrawal of such stop order or relief from such occurrence
or objection, including, if necessary, by filing an amendment to the Registration Statement or a new registration statement and
using its commercially reasonable efforts to have such amendment or new registration statement declared effective as soon as practicable.

 

    	 	18	 

     

    

 

(b)       Subsequent
Events. If, at any time on or after an Applicable Time but prior to the related Settlement Date, any event occurs as a result
of which the Registration Statement or Prospectus would include any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein in the light of the circumstances under which they were made or the circumstances
then prevailing not misleading, the Company will (i) notify promptly the Manager so that any use of the Registration Statement
or Prospectus may cease until such are amended or supplemented; (ii) amend or supplement the Registration Statement or Prospectus
to correct such statement or omission; and (iii) supply any amendment or supplement to the Manager in such quantities as the
Manager may reasonably request.

 

(c)       Notification
of Subsequent Filings. During any period when the delivery of a prospectus relating to the Shares is required (including in
circumstances where such requirement may be satisfied pursuant to Rule 172, Rule 173 or any similar rule) to be delivered
under the Act, any event occurs as a result of which the Prospectus as then supplemented would include any untrue statement of
a material fact or omit to state any material fact necessary to make the statements therein in the light of the circumstances under
which they were made at such time not misleading, or if it shall be necessary to amend the Registration Statement, file a new registration
statement or supplement the Prospectus to comply with the Act or the Exchange Act or the respective rules thereunder, including
in connection with use or delivery of the Prospectus, the Company promptly will (i) notify the Manager of any such event,
(ii) subject to Section 4(a), prepare and file with the Commission an amendment or supplement or new registration statement
which will correct such statement or omission or effect such compliance, (iii) use its commercially reasonable efforts to
have any amendment to the Registration Statement or new registration statement declared effective as soon as practicable in order
to avoid any disruption in use of the Prospectus and (iv) supply any supplemented Prospectus to the Manager in such quantities
as the Manager may reasonably request.

 

(d)       Earnings
Statements. As soon as practicable, the Company will make generally available to its security holders and to the Manager an
earnings statement or statements of the Company and its Subsidiaries which will satisfy the provisions of Section 11(a) of
the Act and Rule 158.

 

(e)       Delivery
of Registration Statement. Upon the request of the Manager, the Company will furnish to the Manager and counsel for the Manager,
without charge, signed copies of the Registration Statement (including exhibits thereto) and, so long as delivery of a prospectus
by the Manager or dealer may be required by the Act (including in circumstances where such requirement may be satisfied pursuant
to Rule 172, 173 or any similar rule), as many copies of the Prospectus and each Issuer Free Writing Prospectus and any supplement
thereto as the Manager may reasonably request. The Company will pay the expenses of printing or other production of all documents
relating to the offering.

 

(f)       Qualification
of Shares. The Company will arrange, if necessary, for the qualification of the Shares for sale under the laws of such jurisdictions
as the Manager may reasonably designate and will maintain such qualifications in effect so long as required for the distribution
of the Shares; provided that in no event shall the Company be obligated to qualify to do business in any jurisdiction where it
is not now so qualified or to take any action that would subject it to service of process in suits, other than those arising out
of the offering or sale of the Shares, in any jurisdiction where it is not now so subject.

 

    	 	19	 

     

    

 

(g)       Free
Writing Prospectus. The Company agrees that, unless it has or shall have obtained the prior written consent of the Manager
(such consent not to be unreasonably withheld or delayed), and the Manager agrees with the Company that, unless it has or shall
have obtained, as the case may be, the prior written consent of the Company, it has not made and will not make any offer relating
to the Shares that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a “free writing
prospectus” (as defined in Rule 405) required to be filed by the Company with the Commission or retained by the Company
under Rule 433. Any such free writing prospectus consented to by the Manager or the Company is hereinafter referred to as
a “Permitted Free Writing Prospectus.” The Company agrees that (i) it has treated and will treat, as the
case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus and (ii) it has complied and will
comply, as the case may be, with the requirements of Rules 164 and 433 applicable to any Permitted Free Writing Prospectus,
including in respect of timely filing with the Commission, legending and record keeping.

 

(h)       Subsequent
Equity Issuances. Neither the Company nor any Subsidiary will offer, sell, issue, contract to sell, contract to issue or otherwise
dispose of, directly or indirectly, any other shares of Common Stock or any Common Stock Equivalents (other than the Shares) during
the term of this Agreement (i) without giving the Manager at least three Business Days’ prior written notice specifying
the nature of the proposed transaction and the date of such proposed transaction and (ii) unless the Manager suspends acting
under this Agreement for such period of time requested by the Company or as deemed appropriate by the Manager in light of the proposed
transaction; provided, however, that the Company may issue and sell Common Stock or Common Stock Equivalents pursuant
to any Company Equity Plans, stock ownership plan or dividend reinvestment plan of the Company in effect at the Execution Time
and the Company may issue Common Stock issuable upon the conversion or exercise of Common Stock Equivalents outstanding at the
Execution Time without providing any notice to the Manager.

 

(i)       Market
Manipulation. Until the termination of this Agreement, the Company will not take, directly or indirectly, any action designed
to or that would constitute or that might reasonably be expected to cause or result in, under the Exchange Act or otherwise, stabilization
or manipulation in violation of the Act, Exchange Act or the rules and regulations thereunder of the price of any security of the
Company to facilitate the sale or resale of the Shares or otherwise violate any provision of Regulation M under the Exchange Act.

 

(j)       Notification
of Subsequent Information. The Company will, at any time during the term of this Agreement, as supplemented from time to time,
advise the Manager immediately after it shall have received notice or obtained knowledge thereof, of any information or fact that
would alter or affect any opinion, certificate, letter and other document provided to the Manager pursuant to Section 6 herein.

 

    	 	20	 

     

    

 

(k)       Certification
of Accuracy of Disclosure. Upon commencement of the offering of the Shares under this Agreement (and upon the recommencement
of the offering of the Shares under this Agreement following the termination of a suspension of sales hereunder lasting more than
30 trading days), and each time that (i) the Registration Statement or Prospectus shall be amended or supplemented, other than
by means of Incorporated Documents, (ii) the Company files its Annual Report on Form 10-K under the Exchange Act, (iii) the Company
files its quarterly reports on Form 10-Q under the Exchange Act, (iv) the Company files a Current Report on Form 8-K containing
amended financial information (other than information that is furnished and not filed), if the Manager reasonably determines that
the information in such Form 8-K is material, or (v) the Shares are delivered to the Manager as principal at the Time of Delivery
pursuant to a Terms Agreement (such commencement or recommencement date and each such date referred to in (i), (ii), (iii), (iv)
and (v) above, a “Representation Date”), unless waived by the Manager, the Company shall furnish or cause to
be furnished to the Manager forthwith a certificate dated and delivered on the Representation Date, in form reasonably satisfactory
to the Manager to the effect that the statements contained in the certificate referred to in Section 6(c) of this Agreement which
were last furnished to the Manager are true and correct at the Representation Date, as though made at and as of such date (except
that such statements shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented to
such date) or, in lieu of such certificate, a certificate of the same tenor as the certificate referred to in said Section 6(c),
modified as necessary to relate to the Registration Statement and the Prospectus as amended and supplemented to the date of delivery
of such certificate.

 

(l)       Bring
Down Opinions; Negative Assurance. At each Representation Date, unless waived by the Manager, the Company shall furnish or
cause to be furnished forthwith to the Manager and to counsel to the Manager a written opinion of counsel to the Company (“Company
Counsel”) addressed to the Manager and dated and delivered on such Representation Date, in form and substance reasonably
satisfactory to the Manager, including a negative assurance representation.

 

(m)       Auditor
Bring Down “Comfort” Letter. At each Representation Date, unless waived by the Manager, the Company shall cause
(1) the Company’s auditors (the “Accountants”), or other independent accountants satisfactory to
the Manager forthwith to furnish the Manager a letter, and (2) the Chief Financial Officer of the Company forthwith to furnish
the Manager a certificate, in each case dated on such Representation Date, in form satisfactory to the Manager, of the same tenor
as the letters and certificate referred to in Section 6 of this Agreement but modified to relate to the Registration Statement
and the Prospectus, as amended and supplemented to the date of such letters and certificate; provided, however, that
the Company will not be required to cause the Accountants to furnish such letters to the Manager in connection with the filing
of a Current Report on Form 8-K unless (i) such Current Report on Form 8-K is filed at any time during which a prospectus
relating to the Shares is required to be delivered under the Act and (ii) the Manager has reasonably requested such letter
based upon the event or events reported in such Current Report on Form 8-K.

 

    	 	21	 

     

    

 

(n)       Due
Diligence Session. Upon commencement of the offering of the Shares under this Agreement (and upon the recommencement of the
offering of the Shares under this Agreement following the termination of a suspension of sales hereunder lasting more than 30 trading
days), and at each Representation Date, unless waived by the Manager, the Company will conduct a due diligence session, in form
and substance, reasonably satisfactory to the Manager, which shall include representatives of management and Accountants. The Company
shall cooperate timely with any reasonable due diligence request from or review conducted by the Manager or its agents from time
to time in connection with the transactions contemplated by this Agreement, including, without limitation, providing information
and available documents and access to appropriate corporate officers and the Company’s agents during regular business hours
and at the Company’s principal offices, and timely furnishing or causing to be furnished such certificates, letters and opinions
from the Company, its officers and its agents, as the Manager may reasonably request. The Company shall reimburse the Manager for
Manager’s counsel’s time in each such due diligence update session, up to a maximum of $5,000 per update, plus any
incidental expense incurred by the Manager in connection therewith.

 

(o)       Acknowledgment
of Trading. The Company acknowledges that the Manager may trade in the Common Stock for the Manager’s own account and
for the account of its clients at the same time as sales of the Shares occur pursuant to this Agreement or pursuant to a Terms
Agreement.

 

(p)       Disclosure
of Shares Sold. The Company will disclose in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q,
as applicable, the number of Shares sold through the Manager under this Agreement, the Net Proceeds to the Company and the compensation
paid by the Company with respect to sales of Shares pursuant to this Agreement during the relevant quarter.

 

(q)       Rescission
Right. If to the knowledge of the Company, the conditions set forth in Section 6 shall not have been satisfied as of the applicable
Settlement Date, the Company will offer to any person who has agreed to purchase Shares from the Company as the result of an offer
to purchase solicited by the Manager the right to refuse to purchase and pay for such Shares.

 

(r)       Bring
Down of Representations and Warranties. Each acceptance by the Company of an offer to purchase the Shares hereunder, and each
execution and delivery by the Company of a Terms Agreement, shall be deemed to be an affirmation to the Manager that the representations
and warranties of the Company contained in or made pursuant to this Agreement are true and correct as of the date of such acceptance
or of such Terms Agreement as though made at and as of such date, and an undertaking that such representations and warranties will
be true and correct as of the Settlement Date for the Shares relating to such acceptance or as of the Time of Delivery relating
to such sale, as the case may be, as though made at and as of such date (except that such representations and warranties shall
be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented relating to such Shares).

 

    	 	22	 

     

    

 

(s)       Reservation
of Shares. The Company shall ensure that there are at all times sufficient shares of Common Stock to provide for the issuance,
free of any preemptive rights, out of its authorized but unissued shares of Common Stock or shares of Common Stock held in treasury,
of the maximum aggregate number of Shares authorized for issuance by the Board pursuant to the terms of this Agreement. The Company
will use its commercially reasonable efforts to cause the Shares to be listed for trading on the Trading Market and to maintain
such listing.

 

(t)       Obligation
Under Exchange Act. During any period when the delivery of a prospectus relating to the Shares is required (including in circumstances
where such requirement may be satisfied pursuant to Rule 172, 173 or any similar rule) to be delivered under the Act, the
Company will file all documents required to be filed with the Commission pursuant to the Exchange Act within the time periods required
by the Exchange Act and the regulations thereunder.

 

(u)       DTC
Facility. The Company shall cooperate with the Manager and use its reasonable efforts to permit the Shares to be eligible for
clearance and settlement through the facilities of DTC.

 

(v)       Use
of Proceeds. The Company will apply the Net Proceeds from the sale of the Shares in the manner set forth in the Prospectus.

 

(w)       Filing
of Prospectus Supplement. On or prior to the earlier of (i) the date on which the Company shall file a Quarterly Report
on Form 10-Q or an Annual Report on Form 10-K in respect of any fiscal quarter in which sales of Shares were made by the Manager
pursuant to Section 2(b) of this Agreement and (ii) the date on which the Company shall be obligated to file such document
referred to in clause (i) in respect of such quarter (each such date, and any date on which an amendment to any such document
is filed, a “Filing Date”), the Company will file a prospectus supplement with the Commission under the applicable
paragraph of Rule 424(b), which prospectus supplement will set forth, with regard to such quarter, the number of the Shares
sold through the Manager as agent pursuant to Section 2(b) of this Agreement, the Net Proceeds to the Company and the compensation
paid by the Company with respect to such sales of the Shares pursuant to Section 2(b) of this Agreement and deliver such number
of copies of each such prospectus supplement to the Trading Market as are required by such exchange. The Company may satisfy such
disclosure requirement by including such information in a Quarterly Report on Form 10-Q or an Annual Report on Form 10-K. In the
event any sales are made pursuant to this Agreement which are NOT made in “at the market” offerings as defined in Rule
415, including, without limitation, any Placement pursuant to a Terms Agreement, the Company shall file a Prospectus Supplement
describing the terms of such transaction, the amount of Shares sold, the price thereof, the Manager’s compensation, and such
other information as may be required pursuant to Rule 424 and Rule 430B, as applicable, within the time required by Rule 424.

 

    	 	23	 

     

    

 

(x)       Additional
Registration Statement. To the extent that the Registration Statement is not available for the sales of the Shares as contemplated
by this Agreement, the Company shall file a new registration statement with respect to any additional shares of Common Stock necessary
to complete such sales of the Shares and shall use commercially reasonable efforts to cause such registration statement to become
effective as promptly as practicable. After the effectiveness of any such registration statement, all references to “Registration
Statement” included in this Agreement shall be deemed to include such new registration statement, including all documents
incorporated by reference therein pursuant to Item 12 of Form S-3, and all references to “Base Prospectus”
included in this Agreement shall be deemed to include the final form of prospectus, including all documents incorporated therein
by reference, included in any such registration statement at the time such registration statement became effective.

 

5.       Payment
of Expenses. The Company agrees to pay the costs and expenses incident to the performance of its obligations under this Agreement,
whether or not the transactions contemplated hereby are consummated, including without limitation: (i) the preparation, printing
or reproduction and filing with the Commission of the Registration Statement (including financial statements and exhibits thereto),
the Prospectus and each Issuer Free Writing Prospectus, and each amendment or supplement to any of them; (ii) the printing
(or reproduction) and delivery (including postage, air freight charges and charges for counting and packaging) of such copies of
the Registration Statement, the Prospectus, and each Issuer Free Writing Prospectus, and all amendments or supplements to any of
them, as may, in each case, be reasonably requested for use in connection with the offering and sale of the Shares; (iii) the
preparation, printing, authentication, issuance and delivery of certificates for the Shares, including any stamp or transfer taxes
in connection with the original issuance and sale of the Shares; (iv) the printing (or reproduction) and delivery of this
Agreement, any blue sky memorandum and all other agreements or documents printed (or reproduced) and delivered in connection with
the offering of the Shares; (v) the registration of the Shares under the Exchange Act, if applicable, and the listing of the
Shares on the Trading Market; (vi) any registration or qualification of the Shares for offer and sale under the securities
or blue sky laws of the several states (including filing fees and the reasonable fees and expenses of counsel for the Manager relating
to such registration and qualification); (vii) the transportation and other expenses incurred by or on behalf of Company representatives
in connection with presentations to prospective purchasers of the Shares; (viii) the fees and expenses of the Company’s
accountants and the fees and expenses of counsel (including local and special counsel) for the Company; (ix) the filing fee under
FINRA Rule 5110; (x) the reasonable fees and expenses of the Manager’s counsel, not to exceed $85,000 (excluding any periodic
due diligence fees provided for under Section 4(n), $0 of which has been paid prior to the date hereof and the balance of which
shall be paid upon the Execution Time; and (xi) all other costs and expenses incident to the performance by the Company of its
obligations hereunder.

 

    	 	24	 

     

    

 

6.       Conditions
to the Obligations of the Manager. The obligations of the Manager under this Agreement and any Terms Agreement shall be subject
to (i) the accuracy of the representations and warranties on the part of the Company contained herein as of the Execution
Time, each Representation Date, and as of each Applicable Time, Settlement Date and Time of Delivery, (ii) to the performance
by the Company of its obligations hereunder and (iii) the following additional conditions:

 

(a)       Filing
of Prospectus Supplement. The Prospectus, and any supplement thereto, required by Rule 424 to be filed with the Commission
have been filed in the manner and within the time period required by Rule 424(b) with respect to any sale of Shares; each
Prospectus Supplement shall have been filed in the manner required by Rule 424(b) within the time period required hereunder
and under the Act; any other material required to be filed by the Company pursuant to Rule 433(d) under the Act, shall have
been filed with the Commission within the applicable time periods prescribed for such filings by Rule 433; and no stop order
suspending the effectiveness of the Registration Statement or any notice objecting to its use shall have been issued and no proceedings
for that purpose shall have been instituted or threatened.

 

(b)       Delivery
of Opinion. The Company shall have caused the Company Counsel to furnish to the Manager, to the extent requested by the Manager
and upon reasonable advance notice in connection with any offering of the Shares, its opinion and negative assurance statement,
dated as of such date and addressed to the Manager in form and substance acceptable to the Manager.

 

(c)       Delivery
of Officer’s Certificate. The Company shall have furnished or caused to be furnished to the Manager, to the extent requested
by the Manager and upon reasonable advance notice in connection with any offering of the Shares, a certificate of the Company signed
by the Chief Executive Officer or the President and the principal financial or accounting officer of the Company, dated as of such
date, to the effect that the signers of such certificate have carefully examined the Registration Statement, the Prospectus, any
Prospectus Supplement and any documents incorporated by reference therein and any supplements or amendments thereto and this Agreement
and that:

 

(i)       the
representations and warranties of the Company in this Agreement are true and correct on and as of such date with the same effect
as if made on such date and the Company has complied with all the agreements and satisfied all the conditions on its part to be
performed or satisfied at or prior to such date;

 

    	 	25	 

     

    

 

(ii)       no
stop order suspending the effectiveness of the Registration Statement or any notice objecting to its use has been issued and no
proceedings for that purpose have been instituted or, to the Company’s knowledge, threatened; and

 

(iii)       since
the date of the most recent financial statements included in the Registration Statement, the Prospectus and the Incorporated Documents,
there has been no Material Adverse Effect on the condition (financial or otherwise), earnings, business or properties of the Company
and its subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business, except as
set forth in or contemplated in the Registration Statement and the Prospectus.

 

(d)       Delivery
of Accountants’ “Comfort” Letter. The Company shall have requested and caused the Accountants to have furnished
to the Manager, to the extent requested by the Manager and upon reasonable advance notice in connection with any offering of the
Shares, letters (which may refer to letters previously delivered to the Manager), dated as of such date, in form and substance
satisfactory to the Manager, confirming that they are independent accountants within the meaning of the Act and the Exchange Act
and the respective applicable rules and regulations adopted by the Commission thereunder and that they have performed a review
of any unaudited interim financial information of the Company and included or incorporated by reference in the Registration Statement
and the Prospectus and provide customary “comfort” as to such review in form and substance satisfactory to the Manager.

 

(e)       No
Material Adverse Event. Since the respective dates as of which information is disclosed in the Registration Statement, the
Prospectus and the Incorporated Documents, except as otherwise stated therein, there shall not have been (i) any change or
decrease in previously reported results specified in the letter or letters referred to in paragraph (d) of this Section 6
or (ii) any change, or any development involving a prospective change, in or affecting the condition (financial or otherwise),
earnings, business or properties of the Company and its subsidiaries taken as a whole, whether or not arising from transactions
in the ordinary course of business, except as set forth in or contemplated in the Registration Statement, the Prospectus and the
Incorporated Documents (exclusive of any amendment or supplement thereto) the effect of which, in any case referred to in clause (i)
or (ii) above, is, in the reasonable judgment of the Manager, so material and adverse as to make it impractical or inadvisable
to proceed with the offering or delivery of the Shares as contemplated by the Registration Statement (exclusive of any amendment
thereof), the Incorporated Documents and the Prospectus (exclusive of any amendment or supplement thereto).

 

    	 	26	 

     

    

 

(f)       Payment
of All Fees. The Company shall have paid the required Commission filing fees relating to the Shares within the time period
required by Rule 456(b)(1)(i) of the Act without regard to the proviso therein and otherwise in accordance with Rules 456(b)
and 457(r) of the Act and, if applicable, shall have updated the “Calculation of Registration Fee” table in accordance
with Rule 456(b)(1)(ii) either in a post-effective amendment to the Registration Statement or on the cover page of a
prospectus filed pursuant to Rule 424(b).

 

(g)       No
FINRA Objections. FINRA shall not have raised any objection with respect to the fairness and reasonableness of the terms and
arrangements under this Agreement.

 

(h)       Shares
Listed on Trading Market. The Shares shall have been listed and admitted and authorized for trading on the Trading Market,
and satisfactory evidence of such actions shall have been provided to the Manager.

 

(i)       Other
Assurances. Prior to each Settlement Date and Time of Delivery, as applicable, the Company shall have furnished to the Manager
such further information, certificates and documents as the Manager may reasonably request.

 

If any of the conditions
specified in this Section 6 shall not have been fulfilled when and as provided in this Agreement, or if any of the opinions and
certificates mentioned above or elsewhere in this Agreement shall not be reasonably satisfactory in form and substance to the Manager
and counsel for the Manager, this Agreement and all obligations of the Manager hereunder may be canceled at, or at any time prior
to, any Settlement Date or Time of Delivery, as applicable, by the Manager. Notice of such cancellation shall be given to the Company
in writing or by telephone or facsimile confirmed in writing.

 

The documents required
to be delivered by this Section 6 shall be delivered at the office of Ellenoff Grossman & Schole LLP, counsel for the Manager,
at 1345 Avenue of the Americas, New York, New York 10105, on each such date as provided in this Agreement.

 

7.       Indemnification
and Contribution.

 

(a)       Indemnification
by Company. The Company agrees to indemnify and hold harmless the Manager, the directors, officers, employees and agents of
the Manager and each person who controls the Manager within the meaning of either the Act or the Exchange Act against any and all
losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange
Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement for the registration of the Shares as originally filed or in any amendment
thereof, or in the Prospectus, any Issuer Free Writing Prospectus, or in any amendment thereof or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, and agrees to reimburse each such indemnified party for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein
in reliance upon and in conformity with written information furnished to the Company by the Manager specifically for inclusion
therein. This indemnity agreement will be in addition to any liability that the Company may otherwise have.

 

    	 	27	 

     

    

 

(b)       Indemnification
by the Manager. The Manager agrees to indemnify and hold harmless the Company, each of its directors, each of its officers
who signs the Registration Statement, and each person who controls the Company within the meaning of either the Act or the Exchange
Act, to the same extent as the foregoing indemnity from the Company to the Manager, but only with reference to written information
relating to the Manager furnished to the Company by the Manager specifically for inclusion in the documents referred to in the
foregoing indemnity; provided, however, that in no case shall the Manager be responsible for any amount in excess
of the Broker Fee applicable to the Shares and paid hereunder. This indemnity agreement will be in addition to any liability which
the Manager may otherwise have.

 

(c)       Indemnification
Procedures. Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action,
such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 7,
notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will
not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of
such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will
not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification
obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for
which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses
of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however,
that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election
to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate
counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate
counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel
with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available
to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of the institution of such action or (iv) the indemnifying party shall authorize
the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without
the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect
to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim,
action, suit or proceeding.

 

    	 	28	 

     

    

 

(d)       Contribution.
In the event that the indemnity provided in paragraph (a), (b) or (c) of this Section 7 is unavailable to or
insufficient to hold harmless an indemnified party for any reason, the Company and the Manager agree to contribute to the aggregate
losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating
or defending the same) (collectively “Losses”) to which the Company and the Manager may be subject in such proportion
as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Manager on the other from
the offering of the Shares; provided, however, that in no case shall the Manager be responsible for any amount in
excess of the Broker Fee applicable to the Shares and paid hereunder. If the allocation provided by the immediately preceding sentence
is unavailable for any reason, the Company and the Manager severally shall contribute in such proportion as is appropriate to reflect
not only such relative benefits but also the relative fault of the Company on the one hand and of the Manager on the other in connection
with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations. Benefits
received by the Company shall be deemed to be equal to the total Net Proceeds from the offering (before deducting expenses) of
Shares received by it, and benefits received by the Manager shall be deemed to be equal to the Broker Fee applicable to the Shares
and paid hereunder as determined by this Agreement. Relative fault shall be determined by reference to, among other things, whether
any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates
to information provided by the Company on the one hand or the Manager on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Manager
agree that it would not be just and equitable if contribution were determined by pro rata allocation or any other method of allocation
which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d),
no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 7, each person who controls
the Manager within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of the Manager
shall have the same rights to contribution as the Manager, and each person who controls the Company within the meaning of either
the Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of
the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions
of this paragraph (d).

 

8.       Termination.

 

(a)       The
Company shall have the right, by giving written notice as hereinafter specified, to terminate this Agreement in its sole discretion
at any time upon five (5) Business Days’ prior written notice. Any such termination shall be without liability of any party
to any other party except that (i) with respect to any pending sale, through the Manager for the Company, the obligations
of the Company, including in respect of compensation of the Manager, shall remain in full force and effect notwithstanding the
termination and (ii) the provisions of Sections 5, 7, 8, 9, 10, 12, 14 and 15 of this Agreement shall remain in full
force and effect notwithstanding such termination.

 

(b)       The
Manager shall have the right, by giving written notice as hereinafter specified, to terminate the provisions of this Agreement
relating to the solicitation of offers to purchase the Shares in its sole discretion at any time. Any such termination shall be
without liability of any party to any other party except that the provisions of Sections 5, 7, 8, 9, 10, 12, 14 and 15 of
this Agreement shall remain in full force and effect notwithstanding such termination.

 

(c)       This
Agreement shall remain in full force and effect until the earlier of December 31, 2017 and such date that this Agreement is terminated
pursuant to Sections 8(a) or (b) above or otherwise by mutual agreement of the parties; provided that any such
termination by mutual agreement shall in all cases be deemed to provide that Sections 5, 7, 8, 9, 10, 12, 14 and 15 shall
remain in full force and effect.

 

(d)       Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided that such
termination shall not be effective until the close of business on the date of receipt of such notice by the Manager or the Company,
as the case may be. If such termination shall occur prior to the Settlement Date or Time of Delivery for any sale of the Shares,
such sale shall settle in accordance with the provisions of Section 2(b) of this Agreement.

 

    	 	29	 

     

    

 

(e)       In
the case of any purchase of Shares by the Manager pursuant to a Terms Agreement, the obligations of the Manager pursuant to such
Terms Agreement shall be subject to termination, in the absolute discretion of the Manager, by prompt oral notice given to the
Company prior to the Time of Delivery relating to such Shares, if any, and confirmed promptly by facsimile or electronic mail,
if since the time of execution of the Terms Agreement and prior to such delivery and payment, (i) trading in the Company’s
Common Stock shall have been suspended by the Commission or the Trading Market or trading in securities generally on the Trading
Market shall have been suspended or limited or minimum prices shall have been established on such exchange, (ii) a banking
moratorium shall have been declared either by Federal or New York State authorities or (iii) there shall have occurred any
outbreak or escalation of hostilities, declaration by the United States of a national emergency or war, or other calamity or crisis
the effect of which on financial markets is such as to make it, in the sole judgment of the Manager, impractical or inadvisable
to proceed with the offering or delivery of the Shares as contemplated by the Prospectus (exclusive of any amendment or supplement
thereto).

 

9.       Representations
and Indemnities to Survive. The respective agreements, representations, warranties, indemnities and other statements of the
Company or its officers and of the Manager set forth in or made pursuant to this Agreement will remain in full force and effect,
regardless of any investigation made by the Manager or the Company or any of the officers, directors, employees, agents or controlling
persons referred to in Section 7, and will survive delivery of and payment for the Shares.

 

10.       Notices.
All communications hereunder will be in writing and effective only on receipt, and, (a) if sent to the Manager, will be mailed,
delivered, facsimiled or emailed to the address set forth on the signature page hereto and (b) if sent to the Company will be
mailed, delivered, facsimiled or emailed to Trinity Place Holdings Inc., 717 Fifth Avenue, Suite 1303, New York, New York, 10022,
Attention: Chief Financial Officer, Phone: (212) 235-2195, Fax: (212) 235-2199, E-mail: Steven.Kahn@tphs.com.
An electronic communication shall be deemed written notice for purposes of this Section if such communication is delivered to
the electronic mail address specified herein. Such communication shall be deemed to have been received at the time the party sending
such communication receives verification of receipt thereof by the receiving party.

 

11.       Successors.
This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the officers,
directors, employees, agents and controlling persons referred to in Section 7, and no other person will have any right or
obligation hereunder.

 

    	 	30	 

     

    

 

12.       No
Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and sale of the Shares pursuant to this Agreement
is an arm’s-length commercial transaction between the Company, on the one hand, and the Manager and any affiliate through
which it may be acting, on the other, (b) the Manager is acting solely as sales agent and/or principal in connection with
the purchase and sale of the Company’s securities and not as a fiduciary of the Company and (c) the Company’s
engagement of the Manager in connection with the offering and the process leading up to the offering is as independent contractors
and not in any other capacity. Furthermore, the Company agrees that it is solely responsible for making its own judgments in connection
with the offering (irrespective of whether the Manager has advised or is currently advising the Company on related or other matters).
The Company agrees that it will not claim that the Manager has rendered advisory services of any nature or respect, or owe an agency,
fiduciary or similar duty to the Company, in connection with such transaction or the process leading thereto.

 

13.       Integration.
This Agreement (including all schedules and exhibits hereto and Sales Notices issued pursuant hereto) and any Terms Agreement supersede
all prior agreements and understandings (whether written or oral) between the Company and the Manager with respect to the subject
matter hereof.

 

14.       Applicable
Law. This Agreement and any Terms Agreement will be governed by and construed in accordance with the laws of the State of New
York applicable to contracts made and to be performed within the State of New York.

 

15.       Waiver
of Jury Trial. The Company hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Agreement, any Terms Agreement or the transactions
contemplated hereby or thereby. 

 

16.       Counterparts.
This Agreement and any Terms Agreement may be signed in one or more counterparts, each of which shall constitute an original and
all of which together shall constitute one and the same agreement, which may be delivered by facsimile or in .pdf file via e-mail.

 

17.       Use
of Information. The Manager may not provide any information gained in connection with this Agreement and the transactions contemplated
by this Agreement, including due diligence, to any third party other than its legal counsel advising it on this Agreement unless
expressly approved by the Company in writing; provided, however, that the Manager may disclose such information pursuant to any
governmental, judicial or administrative order, subpoena or discovery request or request or inquiry of a regulatory or self-regulatory
body.

  

18.       Amendment.
Neither this Agreement nor any term hereof may be amended other than pursuant to a writing executed by the Company and the Manager.

 

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

 

    	 	31	 

     

    

 

19.       Headings.
The section headings used in this Agreement and any Terms Agreement are for convenience only and shall not affect the construction
hereof.

         

If the foregoing is
in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this
letter and your acceptance shall represent a binding agreement among the Company and the Manager.

 

 

Very truly yours,

 

TRINITY
PLACE HOLDINGS INC.

 

	By:	/s/ Steven Kahn	 
	Name:	Steven Kahn	 
	Title:	Chief Financial Officer  	 

 

The foregoing Agreement is hereby confirmed and
accepted as of the date first written above. 

 

CRAIG-HALLUM CAPITAL GROUP LLC

 

	By:	/s/ Rick Hartfiel	 
	Name:	Rick Hartfiel	 
	Title:	Director of Investment Banking	 

  

	Address for Notice: 	222 South Ninth Street, Suite 350
	 	Minneapolis, MN 55402

 

 

    	 	32	 

     

    

 

Form of Terms Agreement

ANNEX I 

_________ TERMS AGREEMENT

 

Dear Sirs:

 

Trinity
Place Holdings Inc. (the “Company”) proposes, subject to the terms and conditions stated herein and in the At
The Market Offering Agreement, dated ________________ (the “At The Market Offering Agreement”), between the
Company and Craig-Hallum Capital Group LLC (“Manager”), to issue and sell to the Manager the securities specified
in the Schedule I hereto (the “Purchased Shares”). Capitalized terms used but not defined herein
shall have the meaning given such term in the At The Market Offering Agreement.

 

Each
of the provisions of the At The Market Offering Agreement not specifically related to the solicitation by the Manager of offers
to purchase securities is incorporated herein by reference in its entirety, and shall be deemed to be part of this Terms Agreement
to the same extent as if such provisions had been set forth in full herein. Each of the representations and warranties set forth
therein shall be deemed to have been made at and as of the date of this Terms Agreement and the Time of Delivery, except that each
representation and warranty in Section 3 of the At The Market Offering Agreement which makes reference to the Prospectus (as
therein defined) shall be deemed to be a representation and warranty as of the date of the At The Market Offering Agreement in
relation to the Prospectus, and also a representation and warranty as of the date of this Terms Agreement and the Time of Delivery
in relation to the Prospectus as amended and supplemented to relate to the Purchased Shares.

 

An
amendment to the Registration Statement (as defined in the At The Market Offering Agreement), or a supplement to the Prospectus,
as the case may be, relating to the Purchased Shares, in the form heretofore delivered to the Manager is now proposed to be filed
with the Securities and Exchange Commission.

 

Subject
to the terms and conditions set forth herein and in the At The Market Offering Agreement which are incorporated herein by reference,
the Company agrees to issue and sell to the Manager and the latter agrees to purchase from the Company the number of shares of
the Purchased Shares at the time and place and at the purchase price set forth in the Schedule I hereto.

 

    	 	33	 

     

    

       

If the foregoing is (in accordance with your understanding, please sign and return to us a counterpart hereof, whereupon this Terms
Agreement, including those provisions of the At The Market Offering Agreement incorporated herein by reference, shall constitute
a binding agreement between the Manager and the Company.

 

TRINITY PLACE HOLDINGS INC.

 

	By:		 
	 	Name:		 
	 	Title:		 

 

ACCEPTED as of the date first written above.

 

CRAIG-HALLUM CAPITAL GROUP LLC 
      

	By:		 
	 	Name:		 
	 	Title:		 

 

 

    	 	34	 

     

    

 

Schedule I

 

Number of Shares:

 

Purchase Price:

 

Anticipated Closing Date:

 

 

    	 	35

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